Ä Å Œ 'Ä Åú ¡ ÷ º / Contents of Annual Report

ANNUAL REPORT 2013-14
/ CONTENTS OF ANNUAL REPORT
/ From the Chairman & Managing Director ..........................................................................................3
\ / Notice of Annual General Meeting .................................................................................................7
/ \
Directors Report / Management Discussion and Analysis .....................................................................................................13
III II ( ] )
Disclosures Under Pillar-III of Basel-II (New Capital Adequacy Framework) ............................................................................53
/ Corporate Governance Report .............................................................................................................111
/ Balance Sheet .................................................................................................................................................174
/ Profit and Loss Account ...........................................................................................................................175
/ Significant Accounting Policies ...........................................................................................................185
/ Notes on Accounts ................................................................................................................................193
/ Cash Flow Statement ...........................................................................................................................225
/ Auditors Report ..............................................................................................................................227
{ / Our Progress at a glance ...............................................................................................................229
- / Key Performance Ratios ............................................................................................................231

Abridged Financial Statements in Foreign Currency ..........................................................................................................233
- ] -
Classification of Branches - Population Groupwise..............................................................................................................234
- {
Financial Statements of Subsidiary - Andhra Bank Financial Services Limited.........................................................................235

Consolidated Financial Statements of Andhra Bank and its Subsidiary...................................................................................275
/ Proxy Form ...................................................................................................................................................310
\/ / Attendance Slip / Entry Pass ...........................................................................................................311
AUDITORS
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Registar & Share Transfer Agents
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.21/22, -
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- 400 009
UMAMAHESWARA RAO & CO
SUBRAMANIAN AND COMPANY

PATRO & CO
M/s. MCS Limited (Unit: Andhra Bank)
Kashiram Jamnadas Building
C R SAGDEO & CO
Office No. 21/22 Ground Floor
5, P.DMello Road, (Ghadiyal Godi)
NAG & ASSOCIATES
Mumbai 400 009.
PDF processed with CutePDF evaluation edition www.CutePDF.com
2014-15
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2013-14 -
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31.03.2013 .2,23,933 [
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643 31.03.2014 ,
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19.10.2013 ]-]
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Chairman & Managing Directors Letter to Shareholders

Dear Shareholders,
stable investment climate with renewed confidence in the

fundamentals of the economy is quintessential for achieving
the much desired results.
It gives me immense pleasure

to share with you that your Bank
crossed yet another milestone
during financial year 2013-14 with
its total Business surpassing the
`2.50 Lakh Crore mark. The past
year posed several challenges
to the industry with uncertainty
pervading various fronts, which
metamorphosed into subdued economic activity and
consequently belied the expectations of stakeholders badly
affecting the market sentiments and confidence levels of
economy.
The financial year 2014-15 has unfolded itself as an

opportunity to revive the growth momentum, and we will strive
hard with renewed vigour to work towards placing your Bank
amongst the forerunners in the growth process.
The performance highlights of your Bank for the Financial
Year 2013-14 are as follows:
Total Business increased from ` 2,23,933 Crore as
on 31.03.2013 to ` 2,52,494 Crore as on 31.03.2014,
registering a growth rate of 12.8%.
Total Deposits increased to ` 1,41,845 Crore from
` 1,23,796 Crore in the previous year, registering a growth
rate of 14.6%.
Global economy had an inopportune encounter with the

financial year 2013-14 as it had to surmount the associated
risks of adverse policy decisions in connection with interlinked financial markets. The spill-over effects of US Fed
Banks policy announcement were felt by the developing
economies in the form of large capital outflows causing
enormous pressure on domestic liquidity conditions and
currency. These events interfered with domestic policy
stance, and containing the volatility in exchange rates
took precedence over other policy actions in most of these
economies.
CASA Deposits increased to ` 35,186 Crore from

` 31,759 Crore, registering a growth rate of 10.8%.
Cost of Deposits stood at 7.81%.
Gross Bank Credit increased to ` 1,10,649 Crore from
` 1,00,138 Crore, registering a growth rate of 10.5%.
Credit Deposit Ratio stood at 78.02% compared to
80.94% during the previous year.
Net Interest Margin stood at 2.76%.
Non-Interest Income stood at ` 1,333 Crore.
However, it is expected that the global economy should be

entrenched on a higher growth trajectory the coming fiscal in
comparison to that of the previous years, notwithstanding the
risks and spill-over emanating out of unconventional monetary
policies adopted in the recent past by various countries.
Moreover, a challenging policy environment provided an
opportunity to build necessary policy safeguards to be more
prepared for external uncertainties.
Net Profit for 2013-14 stood at ` 436 Crore.

Gross NPAs to Gross Advances Ratio stood at 5.29%.
Net NPAs to Net Advances Ratio stood at 3.11%.
Capital Adequacy Ratio stood at 10.78% under
BASEL-III.
Return on Average Assets stood at 0.29%.
During the third quarter of 2013-14, Indias Gross Domestic

Product (GDP) grew by 4.7% and by 4.6% during the first nine
months, higher than 4.4% and 4.5% respectively during the
corresponding period of the previous year. Even though data
might suggest bottoming out of growth with recovery in near
sight, it should be noted that a large part of growth reflected
in GDP is through huge inflows of FCNR (B) deposits.
Net Profit per Employee stood at ` 2.33 Lakh.

Average Business per Employee stood at ` 12.23 Crore.
Network Expansion: During 2013-14, your Bank opened
248 Branches and added 643 ATMs. As on 31.03.2014,
Bank had 4,009 Delivery Channels consisting of 2114
Branches, 10 Extension Counters, 35 Satellite Offices
and 1850 ATMs.
The role of Agriculture as a sector for fuelling growth

momentum this year seems to be the most crucial, given
the dry clouds of a below normal monsoon hovering over
the horizon this year.
During FY 2013-14, your Bank has taken the following I.T.

initiatives to improve Customer Service:
Next Generation RTGS was implemented w.e.f.
19.10.2013 as per RBI directions. Liquidity Manager
Software required for NG-RTGS was developed in house.
In the backdrop of optimism for recovery in growth this year

coupled with downside risks to industry and agriculture, a
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2012-13

2012-13

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09.05.2014
Issue of Debit Platinum CHIP Card with International

validity.
The following new products are made available at POS

terminals:
Extension of Cheque Truncation System to the Branches

in Western Grid and all applicable locations.
o RD product (RDGFI) is launched for FI customers

o Credits to SHG accounts (both SB and Loan) will
be accepted at any POS terminal without biometric
authentication
Online opening of Savings Bank Accounts facility is

enabled through our web site.
Your Bank received the following awards during 2013-14:
643 new ATMs were installed during this period, which

include 556 Onsite ATMs.
ABIRD, Rajahmundry was awarded as best performing

RSETI for FY 2012-13 in the country for second year in
succession.
Pass book printing kiosks were installed at Navashakti

Branches and other identified Branches.
55 Bunch Note Acceptors were installed at Navashakti
Debit Cards enabled for payments in CC Avenue Websites
Your bank has received second best bank award for

nurturing the RSETI movement in the country for the year
2012-13.
Provision made available for Card Block request through

SMS
NIRED, Rajam was honoured as 3rd Best RSETI in the

country for FY 2012-13.
Generation of Form 15G/H through Finacle system, is

made available, for the customer convenience.
ABIRD, Eluru & Machilipatnam have received consolation

Awards for Best RSETIs for FY 2012-13.
Aadhaar registration enabled through different alternative

delivery channels viz., Internet, ATM, SMS, in addition to
normal registration at Branches.
Your Bank is committed towards delivering best services

to customers by leveraging on technology and dedicated
human resources, and would tirelessly work towards
maximizing shareholders value.
New features provided in Internet Banking:
With warm wishes,
o Two factor authorization to strengthen security
Yours sincerely,
The following new facilities are enabled in ATMs:

o Card to Card transfer.
(C.VR RAJENDRAN)
Chairman & Managing Director
o PIN change for Credit cards.

o Request for Personalized cheque book issue.
The following new features are enabled in Mobile Banking:
Place : Hyderabad
Date : 09.05.2014
o Mobile Baking app for Windows 8 phones, black berry Z10,

o E-Hundi facility for Sri Venkateswara Swami Temple
at Tirumala.
( )
(A Govt. of India Undertaking)
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NOTICE
Notice is hereby given that the Fourteenth Annual General Meeting of shareholders of Andhra Bank will be held on Friday,
July 18th, 2014 at 2.30 p.m. at Sri Sathya Sai Nigamagamam, 8-3-987/2, Sri Nagar Colony, Hyderabad-500 073, to transact
the following business:
. To receive, consider and adopt the Audited Balance Sheet as at 31st March 2014, and the Profit and Loss Account for
the year ended on that date, the Report of the Board of Directors on the working and activities of the Bank for the period
covered by the Accounts and the Auditors Reports on the Balance Sheet and Accounts.
For and on behalf of the Board of Directors

Sd/(C.VR. Rajendran)
Place: Hyderabad
Date: 09.05.2014
fill in and affix their signatures in the space provided

therein and handover the Attendance slip-cum-Entry
pass at the entrance of the venue of the meeting. Proxy
/ Representative of the shareholder should mark on the
attendance slip as proxy or representative as the case
may be.
Notes:
1.
Appointment of Proxy :
EVERY MEMBER ENTITLED TO ATTEND AND VOTE AT
THE MEETING IS ENTITLED TO APPOINT A PROXY TO
ATTEND AND VOTE THEREAT INSTEAD OF HIMSELF
/ HERSELF. SUCH PROXY NEED NOT BE A MEMBER.
5. Cut-Off Date:
In order to be effective, the proxy form must be deposited

at the Head Office of the Bank atleast four days before
the date of the meeting, i.e. before 12.07.2014 upto 2 pm.
No employee of the Bank shall be appointed as a duly
authorized representative or as a proxy.
The Bank has taken Friday, the 6th June, 2014 as the
Cut-off Date for ascertaining the eligible shareholders
for receiving the Annual Report of the Bank for the FY
2013-14 and for participation in voting.
6. Book Closure :
2. Each shareholder other than the Central Government,

who has been registered as a shareholder shall have one
vote on show of hands and in case of poll shall have one
vote for each share held by him subject to maximum of
10% of the total voting rights.
The Register of shareholders and share transfer books

would remain closed from 15.07.2014 to 17.07.2014 (both
days inclusive) for the purpose of Annual General Meeting.
7. Updating of any change in address of the shareholders :
3. Appointment of an authorised representative :
The shareholders holding the shares in physical form are

requested to inform the Bank or its Registrars for noting
the change in their address, if any, for prompt receipt of
any correspondence. The shareholders holding the shares
in electronic form are requested to update the change
in their address, if any, with their respective Depository
Participants.
No person shall be entitled to attend or vote at the meeting

as a duly authorized representative of a Company, unless a
copy of the resolution appointing him as a duly authorized
representative certified to be a true copy by the Chairman
of the meeting at which it was passed shall have been
deposited at the Head Office of the Bank at Hyderabad
not less than four days before the date of the meeting.
8. Consolidation of Folios:
4. Attendance slip-cum-Entry pass:
The shareholders who are holding shares in identical

order of names in more than one account are requested
to intimate to the Registrars and Transfer Agent, the ledger
For the convenience of the members, attendance slip

is enclosed to this report. Members are requested to
7
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2000-01, 2001-02, 2002-03, 2003-04 (/
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8
folio of such accounts and send the share certificates to

enable the Bank to consolidate all the holdings into one
account. The share certificates will be returned to the
members after making necessary endorsement in due
course.
amounts pertaining to 2006-07 (Interim and Final) within

90 days from the date of ensuing Fourteenth Annual
General Meeting, i.e. on or before 27.10.2014.
The shareholders are requested to contact the Bank or
the Banks Registrars & Share Transfer Agents at the
following address with regard to unclaimed dividend
warrants pertaining to the period referred to above till the
date of ensuing Annual General Meeting.
9. Lodgment for Transfers :

Share Certificates along with the duly filled in transfer
deed should be forwarded to the Registrars and Transfer
Agents of the Bank at the following address:
Investor Services Section

Andhra Bank
Dr. Pattabhi Bhavan
Head Office
5-9-11, Saifabad
Hyderabad-500 004.
M/s. MCS Limited (Unit: Andhra Bank)

Office No. 21/22 Ground Floor
5, P.DMello Road, (Ghadiyal Godi)
Mumbai 400 009.
M/s. MCS Limited

Unit: Andhra Bank
Office No. 21/22, Ground Floor
5, P.D.Mello Road, Ghadiyal Godi
Mumbai 400 009.
(iii)Dematerialisation of shares:
10. Requests to Shareholders :
The shareholders who are holding the shares in physical

form are requested to get their shares dematerialised to
avoid loss / misplacing of paper shares.
(i) Green Initiative:

In support of the green initiative, the Bank has sent the
Electronic Voting particulars and the soft copy of the
Annual Report through email to those shareholders whose
e-mail ids are available with Bank or with their Depository
Participants/ Banks Registrar & Share Transfer Agent. The
Bank has decided to circulate the hard copy of Abridged
Annual Report containing the salient features of all the
documents, as prescribed to all those shareholder(s) who
have not registered their email address (es).
(iv)Others:
a. Please note that copies of the Annual Report will not be
distributed at the Annual General meeting as an Economy
measure. Hence, shareholders are requested to bring their
copies of the Annual Report to the venue of the meeting.
b. Shareholders may kindly note that no gifts / coupons will
be distributed at the venue of the meeting.
Full version of the Annual Report will be available on

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

cases/ tape recorders / cameras etc. as these items are
subject to a security check and may not be allowed at the
venue.
11. e-voting:
In Compliance with the SEBI Circular dated 17.04.2014,
the Bank also offers e-voting option besides physical ballot
to all the shareholders. For this purpose, the Bank has
made necessary arrangement with Central Depository
Services (India) Limited (CDSL) for facilitating e-voting
and is pleased to offer e-voting facility as an alternate to
physical ballot (POLL) for its shareholders to enable them
to cast their votes electronically to pass the RESOLUTION.
The e-voting is OPTIONAL.
Further, any correspondence meant for shareholders is

also being sent by e-mail to those shareholders whose
e-mail ids are available.
(ii) Unpaid/Unclaimed Dividends:
In terms of the Banking Companies (Acquisition and
Transfer of Undertakings) and Financial Institutions Laws
(Amendment) Act, 2006 (which has come into force from
16.10.2006), the dividends remaining unpaid with the
Bank for a period of 7 years from the date of declaration
of dividend, are to be transferred to Investor Education
and Protection Fund established under Sub-Section (1)
of Section 205 C of the Companies Act, 1956.
The instructions for members for voting electronically

are as under:In case of members receiving e-mail:
In line with the above guidelines, all such dividend

amounts remaining unpaid / unclaimed for a period of
7 years from the date of declaration of dividend will be
transferred to the Investor Education and Protection Fund,
with effect from 16.10.2013.
(i) If you are holding shares in Demat form and have already
voted earlier on www.evotingindia.com for voting of any
Company, then your existing login id and password are to
be used. If you are a first time user, follow the steps given
below.
The Bank is transferring the amount of unpaid dividend

warrants pertaining to the years 2000-01, 2001-02,
2002-03, 2003-04 (Interim and Final), 2004-05 (Interim
and Final) and 2005-06 to the Investor Education and
Protection Fund (IEPF), latest by 31.07.2014. The Bank
will be transferring the unpaid / unclaimed dividend
(ii) Log on to the e-voting website: www.evotingindia.com;

(iii) Click on Shareholders tab to cast your votes.
(iv) Now, select the Electronic Voting Sequence Number EVSN along with COMPANY NAME(ANDHRA BANK)
from the drop down menu and click on SUBMIT.
9
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(v) Now, fill up the following details in the appropriate boxes:

For Members holding
shares in Demat Form
User - ID For NSDL - 8 character DP ID
followed by 8 digits Client ID.
For CDSL -16 digits
beneficiary ID
(x) Enter the number of shares (which represents number of

votes) under YES or NO or alternatively you may partially
enter any number in YES and partially in NO, but the total
number in YES and NO taking together should not exceed
your total shareholding.
For Members holding

shares in PHYSICAL form
Folio number registered
with the Bank
PAN*
Enter your 10 digit alpha-numeric *PAN issued by Income Tax

Department when prompted by the system while e-voting
(applicable for both demat shareholders as well as physical
shareholders)
DOB #
Enter the Date of Birth as recorded in your demat account or

in the Bank's records for the said demat account or folio in
dd/mm/yyyy format.
(xi)Click on the Resolutions File Link if you wish to view the

entire Resolutions.
(xii) After selecting the resolution you have decided to vote on,
click on SUBMIT. A confirmation box will be displayed.
If you wish to confirm your vote, click on OK, else to
change your vote, click on CANCEL and accordingly
modify your vote.
(xiii) Once you CONFIRM your vote on the resolution, you
will not be allowed to modify your vote.
Dividend Enter the number of shares of Andhra Bank held by you as

Bank
recorded in your demat account or in the Bank's records
Details# for the said demat account or folio.
*
In case of members receiving the physical copy of Notice

of AGM [for members whose e-mail IDs are not registered
with the Bank / Depository Participant(s) or requesting
for a physical copy]:
Members who have not updated their PAN with the Bank/
Depository Participant are requested to use the default
number: ANDBK1234H in the PAN field.
Please follow all steps from sl. no. (ii) to sl. no. (xiii) above,
to cast vote.
Institutional Investors:
# Please enter any one of the details in order to login. In case

either of the details are not recorded with the depository/
Bank, please enter the value: 15/04/1980 in the DOB
column or the <No of Shares Held> in the Dividend Bank
details field. For example, if you are holding 100 shares
enter default value as 100 in < No of Shares held>
Institutional shareholders (i.e. other than

individuals, HUF, NRI etc.) are required to log on to
https://www.evotingindia.co.in and register themselves,
link their account which they wish to vote on and then
cast their vote. They should upload a scanned copy of
the Board Resolution and POA in favour of the Custodian
who they have authorised to vote on their behalf, in PDF
format, in the system for the scrutinizer to verify the vote.
(vi)After entering these details appropriately, click on

SUBMIT tab.
(vii) Members holding shares in physical form will then reach
directly the EVSN selection screen. However, members
holding shares in demat form will now reach Password
Creation menu wherein they are required to mandatorily
enter their login password in the new password field.
The new password has to be minimum eight characters
consisting of at least one upper case (A-Z), one lower case
(a-z), one numeric value (0-9) and a special character(@
# $ %& *). Kindly note that this password is to be also
used by the demat holders for voting for resolutions of any
other company on which they are eligible to vote, provided
that company opts for e-voting through CDSL platform.
It is strongly recommended not to share your password
with any other person and take utmost care to keep your
password confidential. Kindly note that this changed
password is to be also used by the Demat holders for
voting for resolutions for the Bank or any other Company
on which they are eligible to vote, provided that Company
opts for e-voting through CDSL platform.
General Information:
(A) The voting period begins from 10 A.M. on Saturday,
July 12, 2014 and ends at 05.00 P.M. on Monday, July
14, 2014. During this period, shareholders of the Bank,
holding shares either in physical form or in dematerialized
form, as on the cut-off date (record date) June 6th, 2014,
may cast their vote electronically. The e-voting module will
be disabled by CDSL for voting thereafter. Once the vote
on a resolution is cast by the shareholder, the shareholder
shall not be allowed to change it subsequently.
(B) In case you have any queries or issues regarding
e-voting, you may refer the Frequently Asked
Questions (FAQs) and e-voting manual available at
www.evotingindia.com; under help section or write an
email to helpdesk.evoting@cdslindia.com;
(viii) Click on the relevant EVSN on which you choose to vote.
(C)You can also update your mobile number and e-mail id in

the user profile details of the folio which may be used for
sending communication(s) regarding CDSL e-voting system
in future. The same may be used in case the member
forgets the password and the same need to be reset.
(ix) On the voting page, you will see Resolution Description

and against the same the option YES/NO for voting.
Select the option YES or NO as desired. The option YES
implies that you assent to the Resolution and option NO
implies that you dissent to the Resolution.
(D)You are advised to cast your vote only through E-voting

or through Poll at the AGM. In case you cast your votes
through both the modes, votes cast through e-voting shall
only be considered and votes cast at the meeting through
Poll would be rejected.
11

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12
the second, which followed escalation of the Ukraine crisis.

On both these occasions, Indian markets were less volatile
than most of its emerging market peers.
DIRECTORS REPORT:
Directors of your Bank are happy to present the Annual
Report of the Bank together with the audited Statement of
Accounts and Auditors Report for the financial year ended
March 31, 2014.
With the narrowing of the twin deficits (current account deficit

and fiscal deficit) as well as the replenishment of foreign
exchange reserves, adjustment of the rupee exchange rate
and setting in motion disinflationary impulses, the risks of
near-term macro instability seem to have diminished.
MANAGEMENTS DISCUSSION & ANALYSIS

1. MACRO ECONOMIC DEVELOPMENTS
1.1 Monetary and Liquidity Conditionss
Global growth has been decelerating for the last couple of

years and is on the brink of showing improvement this year.
However, risks remain in the form of uncertainties arising
from unwinding unconventional monetary policies in various
regions and the possibility of a renewed deflation in the euro
area.
During the financial year 2013-14, monetary policy had to

face an extraordinary spell of financial turbulence arising
from the US Fed contemplating tapering its large scale asset
purchase programme. The course of gradual monetary easing
that had started alongside some dampening of inflationary
pressures was disrupted by the over-riding need to stabilise
the exchange rate in the face of large capital outflows since
May 2013. Liquidity conditions were tightened considerably
till the exchange rate got stabilised.
According to Advance Estimates of National Income

2013-14 published by Central Statistics Office (CSO), Ministry
of Statistics & Programme Implementation (Govt of India) on
07.02.2014, the growth in Gross Domestic Product (GDP)
during 2013-14 is estimated at 4.9% (y-o-y) as compared to
the growth rate of 4.5% in 2012-13.
Money market rates were range-bound during the early

part of July 2013. However, as INR depreciated sharply,
RBI responded with a series of policy measures during
July-August to tighten liquidity and contain exchange rate
volatility. The net effect of these measures led to a significant
rise in money market rates across the spectrum. As markets
gradually returned to normalcy, RBI effected a calibrated
unwinding of its exceptional measures which resulted in
softening of money market rates and CBLO rates during Q3
of 2013-14 across the spectrum.
As per RBI, global growth in 2014 is likely to be around 0.5%

higher than the previous year, and is expected to be about
3.5%. The expansion in global output is expected to be led
by advanced economies (AEs). Downside risks to growth
trajectory arise from ongoing tapering of quantitative easing
(QE) in the US, continuing deflation concerns and weak
balance sheets in the euro area and, inflationary pressures
in the emerging market and developing economies (EMDEs).
Capital flows to EMDEs are expected to remain volatile, which
could translate into liquidity shocks impacting asset prices.
Annual average CPI inflation has been near or above double

digits for the last six years. This has affected the macrofinancial stability through several channels and has resulted
in a rise in inflation expectations and contributed to financial
disintermediation. Persistently high inflation also resulted in
lower financial and overall savings, a wider current account
gap and a weaker currency which was an inevitable
outcome given the large inflation differential with AEs as
well as EMDEs.
Like most EMDEs, India also faced capital outflows and

intense exchange rate pressures. RBI had to depart from
monetary easing that had started in April 2012 using the
monetary policy space that was gradually becoming available.
Past monetary tightening was dampening the pricing power
of the corporates and the return to fiscal consolidation in
H2 of 2012-13 was reducing the twin deficit risks. Though
macroeconomic weaknesses were evident in the form of
persistence in inflation, falling growth, weaker corporate
balance sheet, deteriorating asset quality of the banks, fiscal
imbalances and external sector vulnerabilities, the economy
seemed to be mending.
Credit disbursement moderated after November 2013, with

a slowdown in credit off-take across agriculture and allied
activities and industry during December 2013. On the other
hand, services sector continued to exhibit a strong build-up.
Non-food credit growth decelerated from a financial year
peak of 18.1% on 06.09.2013 to 15% on 10.01.2014. In view
of the higher cost of non-bank funds, corporates had earlier
resorted to cheaper bank credit, thereby causing an uptick in
the credit growth in Q2 of 2013-14. However, with the lowering
of the MSF rate (to 100 bps above the repo rate) credit growth
moderated in line with the RBIs indicative trajectory of 15%.
Asset quality indicators that have been deteriorating since
2011-12 are also responsible for moderating credit off-take
in the face of slowdown in economic activity.
However, the prospect of tapering resulted in a rapid

deterioration of financial conditions across emerging markets.
Large capital outflows and sliding currency highlighted the
underlying macroeconomic weaknesses in the economy.
Stabilisation of the economy by restoring exchange rate
stability became the overriding task. RBI maintained a tight
monetary policy stance but avoided stiff tightening keeping
in mind the weak state of economy.
In the backdrop of a challenging global environment, policy
action in India has rebuilt buffers to act as a cushion against
possible spillovers - the first, when the US Fed started the
withdrawal of its large scale asset purchase programme and
Gradual easing of the tight liquidity situation and the lowering

of funding costs as normalcy returned to money markets aided
in the decline of average domestic deposit rates across bank
categories from the highs seen at the end of September 2013.
13
, - ... - \, ]
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14
Money market rates have witnessed some hardening since

the second half of December, on the back of tighter liquidity
conditions emanating from advance tax outflows. After initial
softening, money market rates remained elevated reflecting
tight liquidity conditions arising out of elevated government
balances with RBI and rise in currency in circulation.
1.2 BoP and External Sector
In line with the expanding activity, world trade is gradually
recovering but at a pace lower than that observed before the
global financial crisis. The pickup in domestic growth in Q2 of
2013-14 essentially emanated from a surge in exports driven
by the impact of rupee depreciation and improved growth in
advanced economies. The contribution of exports to growth
was 4.1% in Q2.
Although flows under net FDI and NRI deposits rose in Q2
as compared to the preceding quarter, these were offset by
outflows under FIIs, repayments of short-term trade credit
and an overseas build up of assets by commercial banks,
particularly in September 2013. Subsequent to the Feds
indication on QE tapering on 22.05.2013, there were large
FII outflows (especially in debt segment as bond prices fell),
the cost of hedging a volatile rupee rose and yield differentials
narrowed for FII debt investors. However, the trend in FII
flows reversed since mid-November 2013 and there was a
net capital inflow both through equity and debt.
Broadly reflecting a fall in Indias foreign exchange reserves
during Q2 of 2013-14, most reserve based external sector
vulnerability indicators worsened during the period. An
improved trade performance and a sharp decline in CAD in
recent months have instilled confidence in Indias external
sector. A sustained improvement in Indias trade performance
over the long run will, however, hinge on the pace of global
recovery and improvement in the competitiveness of Indian
exports.
1.3 Equity and Bond Markets
After initial gains during the early part of the year, the Fed
taper announcement had disrupted global stock markets.
During May 22 - August 30, the Sensex and Nifty declined as
FIIs withdrew US$ 13 billion from domestic debt and equity
markets. The Fed tapering announcement on 18.12.2013 did
not exert significant pressures on equity and bond markets
across the globe. Unlike the May 22 situation, this time Indian
markets withstood the announcement better than other
emerging market peers, having utilised the interim period to
re-build buffers. The BSE Sensex and Nifty both increased
by over 9 per cent during the third quarter as compared to
a decline in both these indices during the previous quarter.
Reactions to the actual tapering decision were far less than
those at the indication of a tapering possibility in May 2013.
At that point, the event had caused several disruptions:
First, the US generic 10-year bond yield rose by 46 bps
in May and crossed 2%, prompting a bond sell-off across
the globe. Second, capital outflows began from emerging
economies bond markets, prompting their exchange rates
to weaken, which in turn led to equity sell-offs. Thirdly,
there were macroeconomic costs in terms of resurgence of
inflation in EMDEs fuelled by pass-through from exchange
rate depreciation. Fourth, capital flow reversals and tightening

financial conditions along with domestic risks had adverse
effects on economic growth in these countries.
India was amongst the countries that faced these headwinds,
even though subsequent policy actions helped mitigate the
effects. The postponement of tapering by a few months
enabled global financial markets to return to more orderly
conditions.
The Feds decision to delay tapering in September had
stabilised EMDE capital markets and eased capital outflows
considerably, providing opportunity to several countries to
address domestic risks. Certain countries with large CADs
that came under pressure in the summer continued to tighten
their monetary policies post-September in efforts to calm
investors, whereas India scaled back exceptional tightening
measures amidst the revival of capital flows and a decline
in CAD.
The effect of Feds announcement on 22.05.2013 and the
subsequent measures by the RBI firmed up government
yields to a significant extent. On account of Open Market
Operations (OMO) purchase auction and a 50 bps reduction
in the MSF rate in October, G-sec yields softened. However,
the yields hardened during November 2013 led by a hike in
the repo rate by 25 bps, better than expected US non-farm
payroll numbers and higher domestic inflation numbers for
October 2013.
The G-sec yields softened to some extent towards the end of
the month on OMO auction announcement and introduction of
new benchmark security. Yields hardened again in December
2013 on higher domestic inflation numbers for November
2013 and the US Fed tapering announcement, despite getting
some support after the policy rate was left unchanged in the
mid-quarter review on December 18, 2013. Thus, during Q3
of 2013-14, G-sec yields remained firm. However, in the start
of Q4 of 2013-14, the yields have softened on better inflation
numbers for December 2013 and on announcement of OMO
purchase auction and 28-day term repo auction.
During Q4, G-sec yields witnessed two-way movements.
The yields remained soft at the beginning of the quarter in
anticipation of lower inflation numbers for December 2013.
The policy rate hike in January 2014 resulted in hardening of
yields. The yields remained capped after the primary auction
deferred earlier was cancelled. The softer inflation numbers
for January and February also supported the softening bias.
The 10-year benchmark G-sec yield closed at 8.80 per cent
at end-March 2014, marginally lower than at the end of
December 2013.
1.4 Trends in Banking Industry
For the Financial Year ended March 2014 (as on last reporting
Friday of March 2014) the Deposits of Scheduled Commercial
Banks (SCBs) stood at ` 77,39,387 Crore registering a growth
rate of 14.6% over the previous year, marginally higher
than the growth rate of 14.3% recorded during the previous
financial year. The momentum in mobilising FCNR(B)
deposits on the back of the swap facility pushed up growth
in aggregate deposits, and hence the money supply.
15
14.3% -
] 2013-14
60,13,085 , ] - 98,477
2013-14 2012-13
] 14.1 % -
2011-12 17.0 % -
- -
- ^ -]
77.9% 77.7 %
] 2012-13 .10,327 7.6%

2013-14 .11,114
] 21.5%
2012-13 .2476 [ 2013-14
3008
2.4.2 ] 31.03.2014
.77.26
2.4.3 2013-14 .12,870
] .11190
\ .2310 31.03.2014

10.7%
1 ],
(. )
2.
2.1
31 \ 2014 ,
31.03.2013 .2,23,933 [ .2,52,494
12.8% ] ( )
2.2 ]
] 31.03.2014 .1,41,845 ]
.18049 (14.6%) ] (
\ \) ] 24.8%
31.03.2014 \ ] .7,493 ]
31.03.2013 7,029 , 6.6%
]
\ ] 31.03.2014 [ 27,693
] 31.03.2013 24,730 12.0%
]
] 31.03.2014 [ 1,06,659
] 31.03.2013 .92,037 15.9%
]
2.3
31.03.2013 .1,00,138 [
31.03.2014 10.5% . 1,10,649
23.2% 31.03.2014 .20,267

, 8.2%
31.03.2013 .16,863 [ 31.03.2014
.18,238
2.4
2013-14 2012-13 .13,957
12.0% . 15,630 ]
[ 1333 ] .1047
2013-14 \ .2,760
] .436
2.4.1 ] 10.7% ]
2012-13 . 12,910 [ 201314 .14,297
2012-13 2013-14
1387.63 10.7%
1407.31 15.4%
-19.68 -0.5%
285.42 27.2%
206.47 109.3%
78.95
9.2%
272.73 13.4%
6.99 -0.3%
846.56 57.3%
-853.55 -66.2%
]
12909.69 14297.32
]
9152.67 10559.98
]
3757.02 3737.34

1047.42 1332.84
188.93 395.40

858.49 937.44
\
2037.21 2309.94
\
2767.23 2760.24
1478.10 2324.66

1289.13 435.58
]
] -2 201314 108.89
.2,457.35
( ) .75.88
2 ]
(. )
2013-14
435.58
]

98.00

108.89
]
2.64
]
95.00

195.00
( )
75.88
]
56.16
16
Gross Bank Credit for SCBs recorded a growth rate of 14.3%

over the previous year, and stood at ` 60,13,085 Crore on
the last reporting Friday of FY 2013-14, out of which Food
Credit stood at ` 98,477 Crore. The growth in advances
during 2013-14 was also slightly higher than the growth rate
of 14.1% registered during 2012-13, but was way below the
robust growth of 17.0% witnessed during FY 2011-12. The
general slowdown in the economy has adversely affected
the credit off-take and is a mere reflection of the reduced
production and investment in the economy as a whole,
and a deteriorating asset quality. The Credit-Deposit Ratio
remained at 77.7%, slightly lower than 77.9% at the end of
the previous financial year.
Interest Income from Advances grew by 7.6% from

` 10,327 Crore during 2012-13 to ` 11,114 Crore
during 2013-14. Interest Income from investments
increased by 21.5% from ` 2,476 Crore during
2012-13, and stood at ` 3,008 Crore during
2013-14.
2.4.2 Out of total Non Interest Income, Fee Based Income
for the financial year ended 31.03.2014 stood at
` 77.26 Crore.
2.4.3 Total Expenses during the financial year 2013-14
were `12,870 Crore against `11,190 Crore during
the previous year. Of this, Operating Expenses
stood at ` 2,310 Crore. Establishment Expenditure
as a percentage of Total Expenditure stood at 10.7%
for the financial year ended 31.03.2014.
2. PERFORMANCE HIGHLIGHTS OF THE BANK

2.1 Business
Table 1: Highlights of Revenue, Expenditure and

Profitability
For the financial year ended 31st March 2014, Andhra Banks
Business increased to ` 2,52,494 Crore from ` 2,23,933 Crore
as on 31.03.2013, recording a growth rate of 12.8% (y-o-y).
(` in Crore)
2012-13 2013-14 Absolute Percentage
Growth Growth
2.2 Deposits
Andhra Banks Total Deposits stood at ` 1,41,845 Crore as on
31.03.2014, recording an incremental growth of ` 18,049 Crore
(14.6%) over the previous year. The share of CASA deposits
(current and savings) in Total Deposits stood at 24.8%.
Total Interest Income
Current Deposits stood at ` 7,493 Crore as on 31.03.2014

as compared to ` 7,029 Crore as on 31.03.2013,
recording a y-o-y growth of 6.6%.
Total Interest Expenditure
9152.67 10559.98 1407.31
15.4%
3757.02 3737.34
-19.68
-0.5%
Other Income
1047.42 1332.84
285.42
27.2%
206.47
109.3%
Core Other Income
Term Deposits increased from ` 92,037 Crore as on

31.03.2013 to ` 1,06,659 Crore as on 31.03.2014,
registering a growth rate of 15.9%.
10.7%
Net Interest Income

Profit on sale of
Investments
Savings Bank Deposits increased to ` 27,693 Crore as

on 31.03.2014, up from ` 24,730 Crore as on 31.03.2013,
growing at a rate of 12.0%.
12909.69 14297.32 1387.63
188.93
395.40
858.49
937.44
78.95
9.2%
Operating Expenses
2037.21 2309.94
272.73
13.4%
Operating Profit
Provisions and
Contingencies
2767.23 2760.24
6.99
-0.3%
1478.10 2324.66
846.56
57.3%
Net Profit
1289.13
435.58 -853.55
-66.2%
2.3 Advances
APPROPRIATIONS
Gross Bank Credit increased by 10.5% from ` 1,00,138 Crore

as on 31.03.2013 to ` 1,10,649 Crore as on 31.03.2014.
The appropriations made out of Net Profit are shown in Table

2. An amount of ` 108.89 Crore was transferred to statutory
reserves during 2013-14, and with this, the statutory reserves
now stand at ` 2457.35 Crore. Transfer towards Dividend
(including Dividend Tax) amounted to ` 75.88 Crore.
Credit to Agriculture Sector registered a growth rate of 23.2%,

and it stood at ` 20,267 Crore as on 31.03.2014.
Credit to Micro, Small and Medium Enterprises (MSME)
increased from ` 16,863 Crore as on 31.03.2013 to ` 18,238
Crore as on 31.03.2014 registering a growth rate of 8.2%.
Table 2: Appropriations out of Net Profit

(` in Crore)
2013-14
2.4 Profitability
Appropriation out of Net Profit
Total Income for the financial year 2013-14 increased by

12.0%, from ` 13,957 Crore during financial year 2012-13 to
` 15,630 Crore. Non-Interest Income increased to ` 1,333
Crore compared to ` 1,047 Crore in the previous year.
Operating Profit of the Bank for 2013-14 stood at ` 2,760
Crore, while Net Profit stood at ` 436 Crore.
Balance brought forward

Transfer to Statutory Reserves
Transfer to Capital Reserve
Transfer to Revenue Reserves
Transfer to Special Reserve
2.4.1 The Total Interest Income recorded a growth rate

of 10.7% and increased from ` 12,910 Crore during
2012-13 to ` 14,297 Crore during 2013-14. Of this,
17
435.58
98.00
108.89
2.64
95.00
195.00
Interim Dividend paid (including Dividend Tax)
75.88
Profit carried over to Balance Sheet
56.16
2.5

- \ ] ] 2.76% ]
3.21 % 42.40 %
45.56% ] ()
.7.67 () 145.57
31.03.2014
] 5.29%
] 3.11%
3
31.03.2013
] (%)
12.02
] (%)
7.87
] ] (%)
3.21
](%)
9.88
(%)
7.00
(%)
42.40
- II (%)
11.76
(%)
0.99
](.)
23.04
(.)
146.11
(%)
2.45
(%)
3.71
2.6 ]
-I ]
-I ]
-II ]
2.8
64.86
2013-14 ]
11.02
3.
( ] ) 12.8%
] , ] 31.03.2013 . 2,23,933 [
3.1 ]
] ( ] ) 31.03.2013
.1,23,714 [ 31.03.2014 .1,41,815
14.6% ] ] .7,466
\ ], .27,693 \ ] .1,06,656
]
5: ] -
31.03.2014
11.22
7.81
2.76
9.40
6.95
45.56
11.18
0.29
7.67
145.57
3.11
5.29
.
.
1
2
3
4
(. )
31.03.2013 31.03.2014
560
590
7882
8148
()
8176
8583
31 \ 2014
( III)
7.96%
0.13%
2.69%
10.78%
2.7 ]
.. - , - III
- 1 , 2013 , 1 , 2013
-III ]-

] 31.03.2014 .11,688
] 10.78%, 9%

-III [ ] -
]-
] ()
], - ]- ]
] -III - -II ]

\ ]
7466.07
\ ]
27692.78
]
106656.12
(1+2+3)
141814.97
(%)
14.6%
(. )
]
5.3%
19.5%
75.2%
100.0%
.31.03.2014 ] ( ]
] )

6: ]
(. )
.
.
%
1
9131.07 (21.3%)
6.4%
2 -
21202.71 (8.1%)
15.0%
3
36796.48 (13.8%)
25.9%
4
74684.71 (16.3%)
52.7%
5 (1+2+3+4)
141814.97 (14.6%) 100.0%
() \
18
2.5 KEY FINANCIAL RATIOS
Table 4: CRAR Position

31 March 2014
(Basel III)
The Bank has done considerably well in key financial ratios,

given the performance of the Industry as a whole. Net
Interest Margin (NIM) stood at 2.76% compared to 3.21%
in the previous year. Cost to Income Ratio stood at 45.56%,
as compared to 42.40% for the previous year. Earnings per
Share (EPS) stood at ` 7.67 and Book Value per Share
(BVPS) stood at ` 145.57.
7.96%
Additional Tier-1 Capital
0.13%
Tier-II Capital
2.69%
Total
Gross Non-Performing Assets to Gross Advances stood at

5.29% and Net Non-Performing Assets to Net Advances stood
at 3.11% for the financial year ended 31.03.2014.
10.78%
2.8 DIVIDEND
Interim dividend of ` 64.86 Crores was paid during the year,
and no further dividend is proposed to be paid for the financial
year 2013-14. Tax on dividend amounted to ` 11.02 Crores.
Table 3: Key Financial Ratios

Parameter
Tier-1 Capital
31.03.2013
31.03.2014
12.02
11.22
Cost of Deposits (%)
7.87
7.81
Net Interest Margin (%)
3.21
2.76
The Total Business (Total Deposits plus Gross Bank Credit)

of the Bank registered a growth rate of 12.8%, up from
` 2,23,933 Crore as on 31.03.2013 to ` 2,52,494 Crore as
on 31.03.2014.
Yield on Funds (%)
9.88
9.40
3.1 Aggregate Deposits
Cost of Funds (%)
7.00
6.95
Cost-to-income Ratio (%)
42.40
45.56
CRAR Basel II (%)
11.76
11.18
Return on Assets (%)
0.99
0.29
23.04
7.67
146.11
145.57
Net NPA (%)
2.45
3.11
Gross NPAs (%)
3.71
5.29
Yield on Advances (%)
Earning Per Share (Rs.)

Book Value Per Share (Rs.)
3. BUSINESS REVIEW
Aggregate Deposits (excluding inter-bank deposits) went

up from ` 1,23,714 Crore as on 31.03.2013 to ` 1,41,815
Crore as on 31.03.2014, registering a growth rate of 14.6%.
Aggregate Deposits comprised of Current Deposits of
` 7,466 Crore, Savings Deposits of ` 27,693 Crore and Term
Deposits of ` 1,06,656 Crore.
Table 5: Category-wise classification of Aggregate
Deposits
(` in Crore)
Sl.
No.
2.6 CAPITAL & NET WORTH

(` in Crore)
Parameter
31.03.2013 31.03.2014
Type of Deposits
Amount
Current Deposits
Savings Bank Deposits
Percentage of
Aggregate
Deposits
7466.07
5.3%
27692.78
19.5%
560
590
Term Deposits
106656.12
75.2%
Reserves Surplus
7882
8148
141814.97
100.0%
Net Worth of the Bank (Tangible)
8176
8583
TOTAL (1+2+3)
Growth rate over
previous year (%)
Equity Capital
14.6%
2.7 CAPITAL ADEQUACY

As per the Reserve Bank of India guidelines, the start date for
implementation of Basel III guidelines in India is w.e.f. April
1, 2013. Accordingly, w.e.f. April 1, 2013, the Bank has been
assessing its Capital Adequacy as per Basel III prescriptions.
Area-wise distribution of Aggregate Deposits (Total Deposits

less Inter-Bank Deposits) as on 31.03.2014 is set forth in the
following Table.
Table 6: Area-wise classification of Aggregate Deposits
The total Capital Funds of the Bank are at ` 11,688 Crore

as on March 31, 2014 and the Capital Adequacy Ratio at
10.78%, is above the required RBI prescribed norm of 9%.
Sl. Category of
No. Branches
The Bank has in place an Internal Capital Adequacy

Assessment Process (ICAAP) for assessing the adequacy
of Capital levels keeping in view the expected increase in
business levels and enhanced Capital requirements in the
Basel III regime. The assessment process also includes
a framework for inclusion of Pillar-II risks under Basel-III
guidelines, such as Credit concentration risk, interest rate
risk in the banking book, liquidity risk, etc.
Amount
(` in Crore)
% to
total
Rural
9131.07 (21.3%)
6.4%
Semi-Urban
21202.71 (8.1%)
15.0%
Urban
36796.48 (13.8%)
25.9%
Metro
74684.71 (16.3%)
52.7%
TOTAL (1+2+3+4)
141814.97 (14.6%)
100.0%
Note: Figures in ( ) indicate annual growth rate over the previous year
19
3.2
10.5% ]
.10,511 ] 31.03.2013
.1,00,138 .1,10,649
7:
3.2.1.2 (\])
2,21,708
.4,305
3.2.2 ()
\, 2014
13.6% ] .13,917
.1,667
3.2.3 {
{ . 14,082 10%
13.93%
3.2.4
.5,269 , ] 15 %
12.76%
3.2.5
.12,795 ,
5% 11.54%
3.2.6

- ]\

. ]

3.3

\\
( -) 20%
9.6% 14,311.26
.
.12,249.92 .13916.53
.1666.61 13.6% -
31.03.2013 2,79,551
[ 31.03.2014 3,12,793 11.9%
31.03.2014 18,238 .
, 8.2%
- ()
\ , ]
, , ,
], \[
]
^^ \
3.00 . ( )
] ,
, , ]
,
- 25% ( ] 20%
) ]
(. )
1.
31.03.2013 31.03.2014
1848.94
1882.14
33.20
2. (2.1 2.4)
98288.81 108766.90 10478.09
2.1 (
)
16450.54
20267.11 3816.57
2.2
16862.64
18238.31 1375.67
2.3 ( )
14327.95
16515.45 2187.50
2.4
50647.68
53746.03 3098.35
(1+2)
]
100137.75 110649.04 10511.29

35132.02
41293.29 6161.27
3.2.1
19.3% -- ]
\, 2014 .41920 (626
) 6,868
40%
, 31.03.2014 41.47% ]
8: (31.3.2014 )
( )
1. (2 7)
2 (2.1 +2.2)
2.1
2.2 ()
3.
4.
5.
6. ( )
7.

I. (%)
II. (%)
2013 -14
41919.69
20893.51
20267.11
626.40
13916.53
1.82
1409.24
5585.43
113.16
41.47%
20.67%
3.2.1.1
\, 2014 .20,894
] 20,267 ()
626 4,443
(27.0%) ] 18%
, 31.03.2014
20.67 % ]
20
3.2 Gross Bank Credit
of 18% of ANBC to Priority Sector advances, Bank recorded

20.67% to ANBC as on 31.03.2014.
For the Financial Year ended 31.03.2014, Bank registered

a growth rate of 10.5% in Gross Bank Credit over the
previous year adding ` 10,511 Crore during the year, to reach
` 1,10,649 Crore as compared to ` 1,00,138 Crore for the
Financial Year ended 31.03.2013.
3.2.1.2 Lending to Self Help Groups (SHGs)

Bank has extended financial assistance to 2,21,708 self help
groups with outstandings of ` 4,305 Crores.
3.2.2 Lending to Micro & Small Enterprises (MSE)
Table 7: Classification of Advances portfolio
Total advances to micro & small enterprise of the bank was

at ` 13,917 Crores as at the end of March 2014, registering
a Y-o-Y growth of 13.6%. The absolute increase during the
above period was ` 1,667 Crores.
(` in Crore)
Category
31.03.2013
1. Food Credit
1848.94
31.03.2014 Variance
1882.14
33.20
2. Non-Food Credit (2.1 to 2.4) 98288.81 108766.90 10478.09

2.1 Advances to Agricultural
Sector(Excl. RIDF)
16450.54
20267.11
3816.57
2.2 Advances to MSME Sector
16862.64
18238.31
1375.67
2.3 Retail Credit (incl. DLs)
14327.95
16515.45
2187.50
2.4 Large Industries & Other

Advances
50647.68
53746.03
3098.35
GROSS BANK CREDIT (1+2)
3.2.3 Credit to Weaker Sections

Advances to weaker sections stood at ` 14,082 Crores, i.e.,
13.93% of ANBC as against norm of 10%.
3.2.4 Credit to Minorities
Total credit extended to minority communities was at ` 5,269
Crores, i.e., 12.76% of priority sector advances as against
norm of 15%.
3.2.5 Credit to Women
100137.75 110649.04 10511.29
Of which, Lending to Priority sector
35132.02
41293.29
Total credit extended to women beneficiaries was at

` 12,795 Crore ,i.e., 11.54% of Net Bank Credit as against
norm of 5%.
6161.27
3.2.1 Priority Sector Lending

Priority Sector advances of the bank stood at ` 41,920 Crores
(incl. RIDF amount of ` 626 Crore) as at the end of March
2014, registering a y-o-y growth of 19.3%. The absolute
increase during the same period was ` 6,868 Crores. As
against statutory requirement of 40% of ANBC to Priority
Sector advances, Bank recorded 41.47% to ANBC as on
31.03.2014.
3.2.6 Integration of land records

To facilitate the Branches and farmers for timely seasonal
agricultural credit, Bankers interface for land records was
provided to branches of Land Administration Department in
Andhra Pradesh for on-line verification.
A dedicated link was developed in Andhra Bank website
on agriculture in association with Dr. NG Ranga Agril.
University for the benefit of farmers.
Table 8: Priority Sector Lending (as on 31.03.2014)

(` in Crore)
Category
1. Priority Sector Advances (2 to 7)
41919.69
2. Agriculture (2.1 + 2.2)
20893.51
2.1 Agriculture Loans

2.2 Eligible Investments (RIDF)
3. Micro and Small Enterprises
4. Micro Credit
MSME Sector is playing a crucial role in the economic

development of our country. Andhra Bank has been according
high priority in lending to this sector since a long time.
Credit to Micro & Small Enterprises (Priority & Non Priority)
has grown by 9.6% against the norm of 20% y-o-y growth. Out
of total MSE advances of ` 14311.26 Crore, Priority Sector
is ` 13916.53 Crore against ` 12249.92 Crore previous year
i.e. an increase of ` 1666.61 Crore registering a growth rate
of 13.6%. The number of accounts under Micro Enterprises
increased from 2,79,551 as on 31.03.2013 to 3,12,793 as on
31.03.2014, i.e. an increase of 11.9%. Total MSME advances
as on 31.03.2014 stood at ` 18,238 Crore registering a growth
rate of 8.2%.
20267.11
626.40
13916.53
1.82
5. Educational Loans
1409.24
6. Housing Loans (including indirect finance)
5585.43
7. Medium Enterprises
3.3 Credit to MSME Sector
2013 -14
113.16
Memo items
I. Priority Sector Advances (%)
41.47%
II. Agriculture Advances (%)
20.67%
To bring down the Turnaround Time (TAT), Andhra Bank has

established SMExpress in two places, i.e. at Hyderabad and
at Chennai, which is a Centralized Processing Cell for MSME
proposals. We propose to open SMExpress at New Delhi,
Kakinada, Bangalore, Vijayawada, Chandigarh and Guntur.
3.2.1.1 Credit to Agriculture

Total agricultural lending of the bank stood at ` 20,894 Crores
as at the end of March 2014, which includes ` 20,267 Crores
of Agricultural Loans and ` 626 Crore of Eligible Investment
(RIDF). An absolute increase of ` 4,443 Crores (27.0%) was
recorded during the period. As against statutory requirement
Andhra Bank has introduced a new scheme i.e. Financing

to MSEs (Micro and Small Enterprises) up to ` 3.00 Crore
against property with a view to ensure hassle free handling
of credit proposals under MSME. Under this scheme, the
21
, , , ] [ ]
18

3.5 - - {
], , , ,
{ \\ 10 {
52.9% , ] \
10.00
.
-

(]) ]
{

(]) ]
{
] ] -
31.03.12 4212
31.03.13 5697
31.03.14 10021
189.47
274.28
386.94
9: - {
(. )
.
1
2
3
4
5
6
7
8
9
10
31.03.2014
31.12.2013

% { %

{
]
22.0% 14642.59 14.3%

15.0% 9845.43 9.6%
10.0% 7917.85 7.7%

10.0% 6659.67 6.5%

9.0% 5627.26 5.5%

10.0% 3380.27 3.3%
]
7.0% 3166.80 3.1%

6.0% 2853.85 2.8%
] ( ) 5.0% 2502.54 2.4%
-]
5.0% 1995.64 1.9%
58591.90
3.6
31.03.2014 ]
10: 31.03.2014 ]
.
%
1
13302.86 (21.1%)
12.0%
2
-
16706.37 (20.3%)
15.1%
3
24284.24 (12.8%)
21.9%
4
56355.57 (4.9%)
51.0%
5
110649.04 (10.5%) 100.0%

() \ .
4.
{
23%
]- -

() \ ()
]
] ]

%
1232
37.86%
1485
44.76%
4324
75.89%
3.4
31.03.2013 12,439 .
31.03.2014 .14,400 1961
. ]
15.76%
31.03.2013
2.20% 31.03.2014 2.00%
21% \ ]
7614 .
] 31.03.2013 2269 . 31.03.2014
2634 . 365 . (16%)
]
\,
2013 84 . ] 1511 .

] ] /
, - -
\ \ -

, , \

]
22
3.5 Advances Industry wise Exposure
assessment of credit limits is simplified; obtention of CMA

data which small borrowers find it difficult to submit need not
be obtained; credit limit shall be fixed at 25% (against 20%
in other schemes) of the assessed turnover.
Bank has loan exposure to various sectors like Power,

Housing Loans, NBFCs, Iron & Steel, textiles, etc. Exposure
to top 10 industries constitutes 52.9% of gross bank credit,
signifying a diversified loan portfolio.
There are 18 Specialized MSME branches operating in the

states of Andhra Pradesh, Orissa, Tamiladu, Punjab and
Chattisgarh to tap the potential business in MSME sector.
Table 9: Industry wise Exposure of Advances

(` in Crore)
Sl.
No.
We have advised all our Branches not to accept collateral

security in the case of loans up to ` 10.00 Lakhs extended
to units in the Micro and Small Enterprises (MSE) sector. We
have also advised our branches to display these guidelines
in Banks premises.
Bank is giving thrust for collateral free lending under the
segment consisting of Micro and Small Enterprises coming
under priority sector category and covered under CGTMSE
scheme.
Our performance under CGTMSE scheme:
Year
No of
A/cs
Amount
(` Crores)
Increase in number of
accounts & % of growth
in amount during the year
31.03.12
4212
189.47
1232
37.86%
31.03.13
5697
274.28
1485
44.76%
31.03.14
10021
386.94
4324
75.89%
3.4 Retail Lending
Industry
Ceilings as Actual
% of
Fund
Total
based
Advances exposure
of previous as on
Quarter 31.03.2014
Power
22.0%
14642.59
14.3%
HOUSING LOANS
15.0%
9845.43
9.6%
NBFC
10.0%
7917.85
7.7%
IRON & STEEL
10.0%
6659.67
6.5%
5.5%
TEXTILES
Construction and Contractors
9.0%
5627.26
10.0%
3380.27
Commercial Real Estates
3.3%
7.0%
3166.80
3.1%
Rice Mills
6.0%
2853.85
2.8%
Engineering (Heavy&Light)
5.0%
2502.54
2.4%
10. Diamonds Gems & Jewellery
5.0%
1995.64
1.9%
Total
The Banks Retail Credit portfolio stood at ` 14,400 Crores as

on 31.03.2014 as against ` 12,439 Crores as on 31.03.2013,
with year on year growth of ` 1961 Crores. The segment
has registered a growth of 15.76% on Y-o-Y basis excluding
Deposit Loans and Credit Card outstandings.
Exposure as
% of Total
Advances of
Previous
Quarter i.e.
31.12.2013
58591.90
3.6 Area-wise position of Gross Bank Credit

The population group wise distribution of Credit as on
31.03.2014 is as under:
Table 10: Gross Bank Credit- Population Group Wise as
on 31.03.2014
The percentage of retail credit NPA to retail credit reduced to

2.00% as on 31.03.2014 as against 2.20% as on 31.03.2013.
Sl. No. Category
Amount
% to total
Housing loans registered an impressive growth rate of 21%

during the year and stood at ` 7,614 Crores.
Rural
13302.86 (21.1%)
12.0%
NAGL portfolio stood at ` 2,634 Crores as on 31.03.2014

as against ` 2,269 Crores as on 31.03.2013, registering a
growth of ` 365 Crores (16%).
Semi-Urban
16706.37 (20.3%)
15.1%
Urban
24284.24 (12.8%)
21.9%
Metro
56355.57 (4.9%)
51.0%
TOTAL
110649.04 (10.5%)
100.0%
Education loans portfolio stood at ` 1,511 Crores and

registered a growth of ` 84 Crores from March 2013, against
negative growth during the previous year.
Note: Figures in ( ) indicate annual growth rate over the

previous year
Initiatives taken by HO for improving Retail Credit

Portfolio
4.
Introduced scheme of Housing loan councellors wherein

retired staff / others will source Housing loan applications
for a nominal commission.
INVESTMENTS
In terms of RBI guidelines, the Bank is required to invest

in SLR securities to the extent of 23% of NDTL. Banks
investment decisions are based on risk-return trade-off and
bank is scrupulously following the regulatory and internal
guidelines. Statutory prescriptions relating to Cash Reserve
Ratio (CRR) and Statutory Liquidity Ratio (SLR) are complied
with and being monitored on a continuous basis. Risk
Management in treasury operations has been strengthened
further by undertaking stress testing and back testing of the
investment portfolio at quarterly intervals, besides daily
Bank has introduced a new variant under gold loans with

flexible repayment facility and overdraft facility.
Retail loan Express for marketing and speedy disposal
of Housing Loans was opened at Hyderabad, Bangalore,
Pune and Chennai.
Retail loans including gold loans are given on Sundays to
augment growth as well as improve customer convenience.
23
4.1.5. ()
() ]

{ ] , ,
]
() .28.40
4.2 ]
50

], ] ]
] ]
] ]
] ]
2013-14 .33,250.68
- ] 31.03.2013 . 3,38,153
31.03.2014 . 5,05,226.24 -
- 31.03.2014 .4318

5.
2013-14
2013-14 10,690 ] (
12.45%)
31.03.2014 .127 (
14.41%)
2013-14 .772 (
3.49%)
31.03.2014 6.74%
2013-14

2013-14 {
\
- ]

]
] .25,000
, .10
, \\ .50

. \
\
] \ ] [
\
]
31.03.2013 . 37362.40 20.5%
( ) 31.03.2014 .45356.62
31.03.2014 .34441.93 , ]
25.21% ] 2012-13
.3008.15 [ 2013-14 .2475.75
2013-14 .403.71 ] 2012-13
.185.46
11:
(. )
2012-13
2013-14 (%)
1.
32973.62 39932.37 21.10%
2.
8.16
0.00
-3.
326.43 293.71 -10.02%
4. \
1338.80 3245.19 142.40%
5. /
307.27 312.23 1.61%
6.
2678.12 1573.12 -41.26%
(1 6)
37632.40 45356.62 20.53%
4.1
4.1.1
]

30% ] 44%
] 26%
] .142.50
4.1.2.
{
-
25% ] ] 320 (1 = .18.36
.587.52 ) 80 (
.138.72 )
() \ 11.07.2012
.31.03.2014
.384.54
4.1.3 \]
\]
, ] ,
, , , ]

\] .3
4.1.4 \] (-)
- .25 \]
11, 2013
24
monitoring of Duration and Value-at-Risk (VaR). External

rating migration of the bonds and debentures portfolio is also
being monitored on quarterly basis.
4.1.5 ASRECC (India) Limited

ASRECC (India) Limited is an Asset Reconstruction Company
registered with RBI to carry on the business of Securitization
and Asset Reconstruction under the provisions of SARFAESI
Act. The equity is contributed by specified undertaking of UTI,
Banks, LIC and ILFS. Our Banks investment in ASRECC
(india) Ltd is ` 28.40 crores.
As on 31.03.2014, the Investments (net of depreciation)

increased by 20.5% and stood at ` 45356.62 Crore, up from
` 37632.40 Crore as on 31.03.2013. SLR maintained as on
31.03.2014 was ` 34441.93 Crore, which constituted 25.21%
of Net Demand and Time Liabilities (NDTL). Interest income
from investments increased from ` 2475.75 Crore in 2012-13
to ` 3008.15 Crore in 2013-14. Profit on sale of investments
stood at ` 403.71 Crore during 2013-14, while it was ` 185.46
Crore during 2012-13.
4.2 Treasury & Forex Business

The Bank is an Authorised Dealer, to deal in foreign
exchange business through 50 designated B category
branches of the Bank. The Bank has speed remittance
arrangements with Three Exchange Houses based in Gulf.
Table 11: Classification of Investments
Systems have been put in place for management of country

risk, exchange risk and other foreign exchange risks. The
country risk exposures for single country risk limit and
aggregate risk limits for the group of countries under each
risk category are fixed and are being monitored on daily basis.
(` in Crore)
1. Government Securities
2. Other Approved Securities
3. Shares
4. Debentures & Bonds
5. Subsidiaries and / or Joint Ventures
6. Others
TOTAL (1 to 6)
2012-13
2013-14
Var (%)
32973.62
39932.37
21.10%
8.16
0.00
--
293.71
-10.02%
326.43
1338.80
During the year 2013-14, the Bank recorded a merchant

turnover of ` 33,250.68 Crore in Forex. The bank achieved
Inter-Bank turnover of ` 5,05,226.24 Crore as on 31.03.2014
compared to ` 3,38,153 Crore as on 31.03.2013. Export
finance of the Bank stood at ` 4,318 Crore as on 31.03.2014.
3245.19 142.40%
307.27
312.23
1.61%
2678.12
1573.12
-41.26%
37632.40 45356.62 20.53%
5. CREDIT CARD BUSINESS
4.1 Strategic Investments
Performance Highlights 2013-14
4.1.1 Joint Venture Insurance

Our Bank is having Joint venture in insurance with Bank
of Baroda and Legal and General Plc of UK christened
IndiaFirst Life Insurance Co. Ltd. Our stake in the venture is
30% while Bank of Baroda holds 44% and Legal and General
Plc holds 26% stake. Both the banks have commenced
sale of insurance policies through their branch outlets. Our
investment in the life insurance venture is ` 142.50 Crore.
4.1.2 Banking subsidiary in Malaysia
The Bank, along with Bank of Baroda and Indian Overseas
Bank, has entered into a tie up for setting up a banking
subsidiary in Malaysia. The Banks stake in the venture is
25%, amounting to RM 80.00 Million (book value ` 138.72
Crore), in a total subscribed capital of RM 320 Million
(approximately ` 587.52 Crore @ 1 RM = ` 18.36).
10690 new credit cards were issued during the year

2013-14 (Y-o-Y Growth Rate: 12.45%)
The joint venture viz. INDIA INTERNATIONAL BANK

(MALAYSIA) BHD commenced business on 11.07.2012. The
joint venture bank has a business of ` 384.54 Crore at the
end of 31.03.2014.
4.1.3 United Stock Exchange of India Ltd
United Stock Exchange of India Ltd is promoted by a
consortium of banks, of which our bank is also a partner.
The other major banks are Canara Bank, Bank of Baroda,
Allahabad Bank, Bank of India, Indian Overseas Bank and
Oriental Bank of Commerce. The Banks Investment in United
Stock Exchange of India Ltd. is ` 3 Crore.
Converted all eligible magnetic strip cards to chip cards

as per RBI Mandate during 2013-14.
Credit card dues as on 31.03.2014 are ` 127 Crores

(Y-o-Y Growth Rate: 14.41%)
Merchant business in the year 2013-14 is ` 772 Crores
(Y-o-Y Growth Rate: 3.49%)
Percentage of NPAs to card dues as on 31.03.2014 is
6.74 %.
Facility for our credit card holders to pay card dues
through Bill Desk is launched during the year 2013-14.
Now, Visa credit card holders have the option of
changing their PIN as per their choice through Andhra
Bank ATMs
Payment gateway for e-commerce transactions is going

to be launched shortly.
VISA Bill Pay facility for easy payment and monitoring
of utility bills is going to be launched shortly.
We are targeting our SB group customers maintaining
average balance of ` 25,000 & above, housing loan
borrowers with limits of ` 10 Lakhs & above, High Net
Worth customers and Corporates enjoying limits of ` 50
Crore and above with us, for issue of new cards.
4.1.4 MCX Stock Exchange Ltd. (MCX-SX)
We are targeting our current account traders maintaining

average balance of ` one Lakh & above with us, to be
enrolled as merchants.
The Banks investment in the equity of MCX-SX is ` 25 Crore.

The Exchange commenced trading in Equity Cash and Equity
Derivatives from February 11, 2013.
25
2013-14 39
13 , 25 1

6.
2013-14

7. -

37 6687

] -] , \ ,
, , ] , ,
-]

] [

3,83,200 749
.05.11.2013 ] ] ]
.50

7.1
.19.12.2013
] 3,00,34,539

.21.12.2013 ] .200.00
] .589.61 [
]

\ 2010 \
30% ]
44% ] 26%
()
2013-14 (
) .114.61 31.03.2014
.91.45 ]
.5.61 ]
]
() , ]
, ] ,

] ]
, , -
(),
] ,
]
, ,
, /
, ]

01.12.2013 31.03.2014 ] ]
.151.20 87,165

7.3
, ]
, 1 2010
, \\ ,
, 100%

]
() {
() ()
158
.25.09.2012 , 31 2012
[ \

740
\ .18.12.2012 -
1074

] ] \

7.2 \
\ - \
, \ , \ , \ ,
\ , \ , \
, \ , \ , \
, \ ] \
7.4
] \

\ \ [
]
26
6. MERCHANT BANKING SERVICES
The Bank has handled 39 issues through ASBA facility during

the Financial Year 2013-14. Out of the same, 13 were IPOs,
25 were FPOs and 1 Rights Issue.
The Bank acted as a Paying Banker for payment of dividend

warrants of two companies during the financial year 2013-14.
A Shareholders and Investors Grievances Cell is functioning
as a part of the Division. The Bank has received 37 complaints
and 6,687 requests during the year. All the complaints and
requests have been redressed by the Bank.
7. BANCASSURANCE & FEE-BASED PRODUCTS

The Bank has been constantly focusing on augmenting noninterest income through diversification of income streams by
taking up marketing of life and non-life insurance products,
Mutual fund products, Depository Services, Direct taxes,
Commercial taxes, Municipal taxes, utility payments etc.
Bank is utilizing Marketing Officers specifically for spreading
awareness of our products and services and also for
marketing our products.
The Share Transfer committee of the Bank met three times

during the year and confirmed the 749 share transfers totalling
to 3,83,200 shares.
The Bank has tied up with M/s TATA AIG General Insurance
Company Limited towards Corporate Guard for Directors and
Officers for an amount of ` 50 Crore for a period of one year
with effect from 05.11.2013.
7.1 Insurance
The Bank along with Bank of Baroda and Legal & General
Group Plc of UK has formed a joint venture life insurance
company named India First Life Insurance Co Ltd and it was
formally launched in the month of March 2010. The Bank has
shareholding of 30% in the company, while Bank of Baroda
has 44% and 26% is held by Legal and General Group Plc.
An Extra-ordinary General Meeting of shareholders of

the Bank was conducted on 19.12.2013 at Hyderabad
and obtained their approval to issue and allot 3,00,34,539
equity shares on preferential basis to Government of India
and an amount of ` 200.00 Crores has been received from
Government of India towards equity capital on 21.12.2013.
With this, the paid-up capital of the Bank has increased to
` 589.61 Crores.
During the FY 2013-14, total New Business premium

(including Retail and Group business) of ` 114.61 Crores was
mobilized. Renewal premium of ` 91.45 Crores was collected
up to 31.03.2014. Bank earned commission of ` 5.61 Crore
from sale of Life Insurance Policies.
Application Supported by Blocked Amount (ASBA):

SEBI had introduced a new mode of payment in public and
rights issues called Application Supported by Blocked Amount
(ASBA), wherein the application money remains blocked
in the Investors bank account till finalization of basis of
allotment in the issue.
Launch of AB Jeevan Abhaya Plus Scheme

AB Jeevan Abhaya Plus scheme came into force from
01.12.2013. Up to 31.03.2014, 87,165 accounts were opened
with outstanding balance of `151.20 Crores.
ASBA process facilitates retail individual investors bidding

at cut-off, with single option, to apply through Self Certified
Syndicate Banks (SCSBs) in which the investors have Bank
accounts. SCSBs are those Banks which satisfy the conditions
laid by SEBI. SCSBs would accept the applications, verify the
same, block the funds to the extent of bid payment amount,
upload the details in the web based bidding system of NSE
/ BSE, unblock when the basis of allotment is finalized and
transfer the amount for allotted shares, to the Bank account
of the issuer.
7.2 Mutual Fund Business

The Bank is having tie ups with Mutual Fund companies,
namely, UTI Mutual Fund, SBI Mutual Fund, Principal Mutual
Fund, Tata Mutual Fund, Sundaram Mutual Fund, Reliance
Mutual Fund, Birla Sun Life Mutual Fund, Fidelity Mutual
Fund, Kotak Mutual Fund, LIC Mutual Fund, Baroda Pioneer
Mutual Fund and ING Vysya Mutual Fund.
The ASBA facility is also available for New Fund Offers of

Mutual Funds.
7.3 Depository Services
In view of the inherent benefits of ASBA to investors,

issuers and the market, w.e.f. 01.05.2010, the reach of
ASBA was subsequently expanded to QIB bidders also on
100% payment of application money including various other
investor categories like High Net Worth Individuals, Corporate
Investors, etc.
Bank is offering depository Services to the public under

the brand name of AB Demat. The Bank is a Depository
Participant (DP) with Central Depository Services (India)
Limited (CDSL) as well as with National Securities Depository
Limited (NSDL). 158 branches of the Bank are authorized to
open demat accounts.
As per SEBI circular dated 25.09.2012, the Bank has enabled

the ASBA facility in all the Metro and Urban Branches of the
Bank numbering to 740 Branches towards implementation
of first phase of increasing the designated branches for
ASBA by 31.10.2012. Further, in the second phase of
implementation, the Bank has provided the facility in all the
Semi-Urban and Rural Branches as on 18.12.2012 totalling
to 1074 Branches. The Bank has also provided the facility in
all the New Branches opened thereafter.
7.4 Government Business Department

Andhra Bank has entered into an MOU with M/s LIC of
India for opening operative accounts.
Also entered into MOU with M/s Central Ware Housing
Corporation for opening of operative accounts.
Focus is on increasing Government Business by
canvassing for operative accounts.
27

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31.03.2014 53 :-
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8. IT INITIATIVES
Developments related to CBS solution:
Finacle, the CBS solution being used by Bank, was
migrated from version 7.0.16 to version 7.0.25 on
18.08.2013.
Database servers at DC & DRC were refreshed with
Super dome servers to meet the increasing volumes of
business.
Migration of all network links from Leased Line to MPLS.
Cloud computing and Virtualization are implemented.
Implementation of statutory directions:
Next Generation RTGS was implemented w.e.f.
19.10.2013. Liquidity Manager Software required for
NG-RTGS was developed in house.
Implemented regulatory guidelines for Securing Card
payment transactions and electronic payment
transactions.
Issue of Debit Platinum CHIP Card with International validity.
Cheque Truncation System implemented at Mumbai
Western Grid.
Implementations/enhancements of Customer Centric
features/facilities:
Online opening of Savings Bank Accounts
643 new ATMs were installed during the year, which
include 556 Onsite ATMs.
Pass book printing kiosks were installed at Navashakti
55 Bunch Note Acceptors were installed at Navashakti
Debit Cards enabled for payments through CC Avenue
Websites
ATM/Debit Card Block request through SMS is enabled
Generation of Form 15G/H through Finacle CBS system.
Aadhaar registration enabled through different alternative
delivery channels viz., Internet, ATM, SMS, in addition
to normal registration at Branches.
The following new facilities are enabled in ATMs:
Card to Card transfer.
PIN change for Credit cards.
Request for issue of Personalized cheque book.
The following new features are enabled in Mobile
Banking:
Mobile Baking app for Windows 8 phones, black berry
Z10,
Donations to Tirumala Tirupathi Devasthanams
(eHundi)
The following new products are made available at POS
terminals:
RD product launched for FI customers
Credits to SHG accounts will be accepted at any
POS terminal
IT initiatives to improve operational efficiency:
Biometric Authentication Solution is implemented for all
Finacle users of the Bank, for better information security
and to prevent password compromise.
Online Chat module facility is provided to branches to

request exchange rate quotes from IIB online.
LMS tool id is developed in house, to capture leads for
Retail loan products and Deposit products.
Product Recommender tool is developed in house for
cross sell or upsell products to the customer
Risk Based Internal Audit (RBIA) software developed in
house, to enable the Bank to move to software based
Audit Process
For receiving feedback / suggestions from our staff
member Blog is created in our internal portal.
Developed in house Premises Management system.
Developed in house GUI based Service Tax module
Implemented Pavala vaddi & Vaddileni Runalu schemes
of Govt of AP in CBS.
9. NETWORK EXPANSION
During the Financial Year 2013-14, Bank opened 248
Branches (including up-gradation of 2 Extension Counters)
and added 643 ATMs. With this, as on 31.03.2014, Bank
had 4009 Delivery Channels consisting of 2114 Branches,
10 Extension Counters, 35 Satellite Offices and 1850 ATMs
spread over 25 States and 3 Union Territories. The Bank has
53 Specialized Branches catering to the needs of the specific
segments of clientele. The Bank also has two Representative
(overseas) Offices at Dubai (U.A.E) (opened in May 2006)
and New Jersey (U.S.A) (opened in November, 2008).
Table 12: Population Group Wise classification of
Branches
Sl. No. Category
Number
% to total
1
Rural
606
28.7%
2
Semi-Urban
592
28.0%
3
Urban
586
27.7%
4
Metro
330
15.6%
TOTAL
2114
100.0 %
As on 31.03.2014 the Bank had 53 Specialized Branches,
as detailed hereunder:
Table 13: Specialized Branches
S.
Category of Specialised Branches
No. of
No.
Brs.
1
Specialised SME Branches
18
2
Specialised Argicultural Finance Branches
3
3
Specialised Agri - Hitech Branches
6
4
Specialised Housing Finance Branches
4
5
Specialised Personnel Banking Branches
4
6
Specialised NRI Branches
3
7
Specialised Retail Credit Branches
7
8
Corporate Finance Branches
2
9
Auto-Tech Finance Branch
1
10
Overseas Branch
1
11
Asset Recovery Management Branch
3
12
Small B Branch
1
TOTAL
53
29
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30
9.1 Presence in Minority-Dominated Districts
A high level Executive Committee viz. Asset-liability

Committee (ALCO) oversees the ALM in the Bank and
deliberates on liquidity and interest rate scenario in the
market and decides upon the pricing of various products.
ALCO regularly monitors the identification, measurement,
monitoring and mitigation of market risk in liquidity, interest
rates, equity and forex areas.
At the end of 31.03.2014 we are having 295 branches in

Minority dominated Districts. Of the Banks total network
across the country, the percentage of Branches in minority
dominated Districts stood at 13.95% as on 31.03.2014.
10. QUALITATIVE ASPECTS:
10.1 Risk Management
The liquidity risk is measured and managed through gap

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

Policy for the management of Credit risk, Market risk and
Operational risk as per the guidance notes/guidelines
issued by the Reserve Bank of India. Accordingly, all
the risk management functions, viz., Credit Risk, AssetLiability Management (ALM), Mid-office of the Treasury
and Operational risk functions have been integrated. The
Integrated Risk Management Policy of the Bank is being
reviewed every year in tune with the regulatory guidelines.
10.1.1 Credit Risk
Credit Risk Management Committee is responsible for
implementation of the Credit policies approved by the
Board and RMC.
The interest rate risk is monitored on a regular basis through

Maturity gap analysis and Duration gap analysis. Tolerance
limits have been fixed for impact on Net Interest Income (NII)
due to adverse changes in interest rates. To measure the
impact of interest rate changes on Banks equity, duration
gap analysis is done and prudential limit is set for modified
duration of equity. Modified duration of equity is within the
prudential limits set for this purpose. VaR and duration
analysis are used for measuring market risk including treasury
operations. The Interest Rate Risk in Banking Book (IRRBB)
is also being assessed on a monthly basis.
The Bank has a well defined Loan Policy duly approved

by the Board prescribing standards for presentation of
credit proposals, financial covenants, rating standards
and benchmarks, delegation of credit approving
powers, prudential limits on large credit exposures,
asset concentrations, standards for loan collateral,
portfolio management, loan review mechanism, risk
concentrations, risk monitoring and evaluation, pricing
of loans, provisioning, regulatory/legal compliance, etc.
Other market related risks to which any bank is exposed

are foreign exchange risk on foreign currency positions,
liquidity or funding risk and price risk on trading portfolios.
The Bank has clearly articulated policies to control and
monitor its treasury functions. These policies comprise
management practices, procedures, prudential risk limits,
review mechanisms and reporting systems. These policies
are revised regularly at fixed intervals in line with the changes
in financial and market conditions.
The Bank has in place comprehensive risk rating

system for various categories of exposures. Bank has
established a Rating cell for assigning internal ratings
for all exposures of ` 5 Crore and above. The Rating cell
vets the internal rating given by the branch/ Zonal office
and assigns final rating.
The Rating cell ensures comprehensive rating coverage,
integrity of rating process and proper data maintenance.
10.1.3 Operational Risk

Management of Operational Risk is a part of the Integrated
Risk Management Policy and the Bank has a focused
attention for management of the Operational Risk, in the
light of the Reserve Bank of India guidelines. Operational
Risk Management Cell is responsible for coordinating all
the operational risk management activities of the bank and
these include building an understanding of the risk profile,
implementing tools related to operational risk management
and working towards the goals of improved controls and
lower risk. Operational Risk Management Committee [ORMC]
ensures implementation of the Operational Risk policies and
monitors the compliance with limits approved by the Board/
Risk Management Committee [RMC].
The Bank utilizes industry reports from CRISIL and the

industry risk score service from CRISIL Research.
10.1.2 Market Risk
Market risk implies possibility of loss arising out of adverse
movements of market determined rates and prices. The
objective of market risk management is to avoid excessive
exposure of Banks earnings and equity to such losses and to
reduce Banks exposure to the volatility inherent in financial
instruments such as securities, foreign exchange contracts,
equity and derivative instruments, as well as balance sheet
or structural positions. The Bank has in place a well-defined
Market Risk Management Policy and an organizational
structure for market risk management functions. The Bank
manages market risk through Asset-Liability Management
(ALM) policy and Investments/Forex policy.
The Bank has been computing capital charge for Operational

risk by adopting Basic Indicator Approach (BIA) as stipulated
by the RBI.
31
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32
Regulatory Capital
10.1.4Preparation for moving over to Advanced

Approaches
As per RBI guidelines, all Commercial banks in India
shall follow the Standardised Approach for Credit risk,
Standardized Duration Approach for Market risk and Basic
Indicator Approach for Operational risk under the New Capital
Adequacy Framework.
Credit Risk: Bank at present is following the Standardized
Approach for estimation of capital requirements for Credit
Risk and the HTM portfolio under Investments. Bank is
gearing itself to move over to Advanced approaches of Credit
risk. In this regard, Bank has developed a Credit Risk Rating
Model (CRRM) with the consultancy assistance of National
Institute of Bank Management (NIBM), Pune. This model is
further strengthened internally by making it a WAN (Wide
Area Network) based CRRM model so that it is accessible
from any of the locations of the bank. This model is capable
of providing transition matrices and default probabilities
(Probability of default) and would help the Bank in moving
over to the Advanced Approaches in future. Bank is working
towards more risk sensitive measures like Risk Adjusted
Return on Capital (RAROC).
As % to RWAs
(i)
Minimum Common Equity Tier 1 ratio
5.5
(ii)
Capital conservation buffer

(comprised of Common Equity)
2.5
(iii)
Minimum Common Equity Tier 1 ratio plus

capital conservation buffer [(i)+(ii)]
8.0
(iv)
Additional Tier 1 Capital
1.5
(v)
Minimum Tier 1 capital ratio [(i)+(iv)]
7.0
(vi)
Tier 2 capital
2.0
(vii) Minimum Total Capital Ratio (MTC [(v)+(vi)]

(viii) Minimum Total Capital Ratio plus
capital conservation buffer [(vii)+(ii)]
9.0
11.5
The Bank is calculating its Capital Adequacy in accordance

with Basel II & Basel III guidelines. The Banks Capital
Adequacy at present is in conformity with the transitional
arrangements for Basel III as prescribed by RBI. However,
to meet the growing business requirements, the Bank may
have to supplement its Capital funds, especially by increasing
Common equity in future.
Pillar II (Supervisory Review & Evaluation Process)
In compliance with the PillarII guidelines of the RBI under
Basel II framework, the Bank has formulated a Policy of
Internal Capital Adequacy Assessment Process (ICAAP) to
assess capital in relation to various risks that it is exposed
to. Stress Testing and scenario analysis are used to assess
the financial and management capability of the Bank to
continue to operate effectively under exceptional but plausible
conditions. The bank is calculating the Concentration risk
on a quarterly basis to assess the portfolio level risks based
on sectoral, geographical and borrower wise concentration.
Bank is using statistical parameters like Herfindahl-Hirshman
Index (HHI), Gini Coefficient, and Rosenbluth Index for
determining the Credit Concentration Risk. The Bank has a
Board approved Stress Testing Policy describing the various
techniques used to gauge its potential vulnerability and also
its capacity to sustain such vulnerability.
Market Risk: Bank is using the Standardized Duration method

for computing capital charge for Market risk (investments in
HFT and AFS categories) as per RBI guidelines.
Operational Risk: Bank has been providing capital for
Operational risk as per the Basic Indicator Approach (BIA).
To move towards advanced approaches for Operational Risk
Measurement the Bank has put in place the following:
Operational Risk Management Policy which covers the
objectives, identification, assessment, monitoring and
control of operational risk loss incidents.
Bank has historical Loss Data for more than 5 years.
Bank has a system in place to track the Operational
Loss events at branch level and for subjecting these
loss events to root cause analysis so as to improve the
control mechanism.
Pillar III (Market Discipline)
Business Line Mapping Policy is framed and approved

by the Banks Board.
The Bank has a Disclosure Policy as per the disclosure

requirements contained in the circular issued by the Reserve
Bank of India on the implementation of the Basel III Capital
Regulations. The guidelines therein are adhered to and
compliance is reported to the Competent Authorities. Pillar-3
(Market discipline) of Basel III, aims to encourage Market
discipline by developing a set of disclosure requirements
which allows market participants to assess key pieces
of information on the scope of application, capital, risk
exposures, risk assessment processes and hence, the
capital adequacy of the Bank. The Pillar3 Disclosures are
Capital Charge on Operational Risk is being calculated

using The Standardized Approach (TSA) on a parallel basis.
10.1.5 Banks compliance to RBI guidelines on Basel
requirements:
Pillar I (Minimum Capital requirements)
RBI has introduced in its Basel III guidelines the following
enhanced capital requirements and has also prescribed
transitional arrangements to conform to these requirements
in a phased manner by March 31, 2019.
33
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31.03.2014 . 5,858
5.29% ]
3.11% 31.03.2014
] 52.55%
. 689
14 -]
1734.06
4094.49
29.05
5857.60
431.89
2028.19
29.05
2489.13
10.2.1 \
2013-14 113 ] .4531
\ ] \ \ 2014 283
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2012-13 2013-14
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1.
564.04
2.78%
2.
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3.
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4.
4461.58
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5857.60
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** %
34
published on a quarterly and half yearly basis on the Banks

website plus a year-end disclosure as on March of every
year. The Pillar-3 year-end disclosures are also published
in the Banks Annual Report apart from being available on
the Banks website.
Provisions held under different classes of NPAs are as under:

Table 16: Provisions held for Non-Performing Assets
(including floating Provisions)
(` in Crore)
Nature of Asset
Amount
Provision
Held
Sub-Standard Assets
1734.06
431.89
Doubtful Assets
4094.49
2028.19
Loss Assets
29.05
29.05
Total
5857.60
2489.13
10.1.6 In addition to the above, RBI has introduced several

other measures of leverage and liquidity standards viz.
A minimum Leverage Ratio of 4.5% to curb the excessive
leverage of a banks balance sheet; and
Liquidity standards by way of two ratios viz. Liquidity
Coverage Ratio (LCR) and Net Stable Funding Ratio
(NSFR).
10.2.1 Restructuring mechanism

During FY 2013-14, 113 accounts with outstanding amount of
` 4,531 Crore were restructured in terms of the restructuring
packages. The total balances in restructured accounts as
at the end of March 2014 stood at ` 10,784 Crore in 283
accounts.
10.2.2 Lending Practices
The Bank had framed well defined Loan Policy Guidelines with
the approval of the Board. These guidelines are reviewed by
the Board at periodical intervals taking into account feedback
received from the field level functionaries, credit departments
at Head Office, competitive environment prevailing among
the banks, for accelerated credit growth envisaged in certain
business segments, marketing & development of new
products, Reserve Bank of India guidelines, Annual Policy
Statement of Reserve Bank of India.
Credit Committees have been constituted in the Bank at
Head Office and Zonal level for sanctioning credit proposals;
suitable sanctioning powers have been delegated to these
committees in terms of directions of Ministry of Finance.
Further, based on feedback received from field level
functionaries, the delegated powers of various sanctioning
authorities are reviewed and revised to reduce turnaround
time in the sanction of credit proposals. The loan review
mechanism is further strengthened in the Bank ensuring
review of sanctions made by all functionaries by higher
committees. The Banks Monitoring Cell has been reviewing
all the sanctions with limits of over ` 3 Crore on a monthly
basis and the details of stressed accounts, if any, are being
brought to the notice of the Top Management for taking
corrective action in time.
The guidelines of the Bank on Loan Policy, Delegation of
Powers and Credit Monitoring Policy have been reviewed by
the Bank and a comprehensive booklet is released during
the year on 28.11.2012. Subsequent changes have been
communicated through circulars from time to time.
10.2.3 Techno Economic Viability (TEV) Cell &
Syndication Desk
The Bank has a Techno Economic Viability (TEV) Cell
which is independent of Credit Processing & Sanctioning
Departments. The Cell undertakes preparation of Project
Information Memorandum (PIM), conducting TechnoEconomic Viability (TEV) Study and Debt Arrangement
(Loan Syndication) for corporate clients. The Cell has
earned Fee based income of `156.92 Lakhs during the
Financial Year 2013-14.
The LCR requires a bank to hold sufficient high-quality liquid

assets to cover its total stressed net cash outflows over 30
days. The NSFR requires a bank to hold sufficient amount of
stable funds to meet the requirement of stable funding over
a one-year period of extended stress.
The Bank is regularly calculating and monitoring the Liquidity
ratios (LCR and NSFR) taking as reference the draft
guidelines issued by the RBI. The Bank is also calculating
and monitoring the Leverage ratio on a monthly basis.
10.2 Management of Asset Quality
Gross NPAs of the Bank stood at ` 5,858 Crore as on
31.03.2014. Gross NPAs as a percentage to Gross Advances
stood at 5.29% while Net NPAs as a percentage to Net
Advances stood at 3.11%. The Provision Coverage of NPAs
as on 31.03.2014 was at 52.55%.
Total reduction in NPA accounts amounted to ` 689 Crore.
Table 14: Position of Non-Performing Assets
(` in Crore)
2012-13
2013-14
Gross NPAs at the beginning of the year
1798.01
3714.49
Additions during the year
2741.67
2832.35
Reduction during the year
825.19
689.24
Gross NPAs at the end the year
3714.49
5857.60
Net NPAs
2409.18
3342.47
The segment-wise distribution of NPAs as on 31.03.2014 is as under:

Table 15: Segment-wise Non-Performing Assets
(` in Crore)
Segment
I. Agriculture
Amount
564.04
% to Total
Advances*
2.78%
II. MSME
528.78
2.90%
III. Retail Credit
303.20
1.84%
IV. Large & Mid Corporate
4461.58
8.02%
Total
5857.60
5.29%
*NPA% to Advances indicates NPA to Advances of that segment.

35
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36
10.2.4 Credit Monitoring Cell

Credit Monitoring Cell of the Bank is reconstituted for both
Large and Mid Corporate Departments separately and
continues to monitor the accounts falling under the powers of
Head Office. This Monitoring Cell is exclusive and separate
from the Credit monitoring done by Credit Monitoring &
Review Department (CMRD) at Head Office.
10.3 Management Information System
Bank has developed a robust Management Information
System which captures data essential for vital functions such
as risk management and planning and which serves as an
effective tool for the Top Management in decision making.
This has facilitated quick decision making. The Bank is in a
position to analyse performance in major parameters even
on a day to day basis using the information system available.
Leveraging on the CBS platform of the Bank, the MIS has
facilitated speedy decision making and its implementation.
10.4 Inspection & Audit
Using the resources of DIT, a software has been developed
in-house, which will be used as a tool for system-based
RBIA from 01.04.2014.
Concurrent audit review of all branches having advances
above ` 200 Crores is brought under the purview of Head
Office to have better monitoring.
As against the scheduled 1,246 branches to be inspected,
the number branches inspected is at 1,330.
Special audit of 463 branches were subjected to
performance audit to ensure that there was no irregularity
in implementation of Agriculture Debt Waiver and Debt
Relief Scheme (ADWDRS).
IS Audit team in addition to regular audit functions is
engaged in monitoring huge spurt in advances in branches.
10.5 Compliance Policy
The Bank has in place a comprehensive Compliance Policy.
An executive of the Bank in the rank of Deputy General
Manager has been appointed as the Chief Compliance
Officer. As per the Policy adopted by the Bank, suitable
organizational structure has been laid down defining the
roles and responsibilities for Compliance Officers of various
departments and Zonal Offices. Compliance of statutory and
regulatory guidelines in the Bank is the scope of operation
of the compliance function of the Bank. Suitable reporting
system is put in place to ensure effective implementation of
Compliance Policy in the bank.
10.6 Legal
Legal Action under SARFAESI Act, 2002
SARFAESI Act, 2002 came into force on 21.06.2002. Bank is
utilizing this Act as an effective tool for recovery of NPA loans.
By invoking SARFAESI Act, 958 secured assets (cumulative
from 2002) were sold by the Bank up to 31.03.2014 involving
Real Balance of ` 1053.63 Crores. During the period from
01.04.2013 to 31.03.2014 the Bank sold 82 secured assets
and recovered an amount of ` 68.20 Crores. Total Recovery
effected by the Bank through invocation of SARFAESI Act in
the financial year has been ` 471.69 Crores.
Adherence to Rights to Information Act

RTI Act, 2005 came into force with effect from 18.10.2005
and the Act was implemented in our bank from the date of
inception as the Bank is a Public Authority under Sec. 2 (h)
of the Act.
All Zonal Mangers are designated as Central Public
Information Officers (CPIOs) for all offices in the Zone to deal
with request and render reasonable assistance / information.
General Manager at Head Office is the Appellate Authority
under the Act.
During the Year 2013-14, Bank received 1011 Requests and
172 Appeals under RTI Act. All the requests and appeals were
responded and replied in time.
10.7 Customer Service
DHANYAWAD Customers Meet
Our Bank has been conducting Customers meet all over
India in all branches on a single day with a view to explain our
Banks performance highlights and also to obtain feedback/
suggestions from the customers for better customer service.
During the financial year 2013-14, Customers Meet
Dhanyawaad was conducted on 28.11.2013. Executives /
Officers from Head Office/Zonal Offices visited the branches
as Special Observers. The reports submitted by the Special
Observers were consolidated and the suggestions received
were put up to the Board and necessary action has been
taken for implementation as per Bank norms.
10.8 Human Resources Management
During the year, several guidelines received from the
Government of India on various H.R. matters in the areas of
Promotions, Recruitment, Performance Appraisal etc were
incorporated in HR Policy. Bank has also adopted Train
Recruit & Induct model in recruitment of officers in addition
to the traditional method of Recruit Induct- & Train.
Accordingly, Bank has entered into a MOU with Manipal
Global Education Services, Bangalore under which Bank
sponsored candidates for the 1 year PGDBF programme
with the institute, on successful completion of which, the
candidates will be absorbed as Probationary Officers in the
Bank. The first batch of the trained candidates of the Manipal
Global Education were inducted in November, 2013. Bank
has sponsored candidates for second batch who will be
inducted in October, 2014.
To augment the existing manpower and bridge the skill gaps
in areas like Credit, Information Technology, Forex, Risk
Management, Treasury etc., and to meet the demands of
expansion, 242 Specialist Officers, 1522 general officers and
1315 clerks were inducted during the year.
Bank also ensured career progression by considering
promotions in each grade as per the manpower and
recruitment plan for the year.
10.8.1 Industrial Relations
Industrial Relations are cordial in the Bank. Quarterly
meetings were held with the representatives of the recognized
Officers Federation and the Award Employees Union. Apart
37
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from this, meetings were also held at Zonal level to sort out
the local issues to better the working conditions as well as
customer service.
conducted weekly online tests for better evaluation. After

completion of the course, the students have joined in the Bank
and have undergone one week induction programme at Apex
College from 04.11.2013 to 09.11.2013. After completion of
the training, the postings for different assignments like Credit
Management, Marketing Management etc., have been done
basing on the skill-mapping completed at Apex College.
10.8.2 Training
Bank has a Apex College with state-of-the art training
infrastructure located in the coveted IT hub of the Financial
District in Hyderabad.
On-line Tests
To improve the core capabilities of employees, various

training programmes on credit, leadership development,
Product Awareness & Soft Skill development were conducted,
besides induction & refresher programmes for newly inducted
employees.
(A) At AB APEX College:With a view to assess the progress

of learning, we have introduced On-line test system at
Apex College. This system has been used for assessing the
knowledge on the contents/topics to be delivered during the
program by conducting:
Workshops and/ programmes on specialized areas were

incorporated in the calendar of trainings to create awareness
among employees about latest developments / changes that
are taking place in Banking Sector.
i. Entry test on the Ist day of the training Program

ii. KYC/AML Test during the program
iii. Exit Test on the Last Day of the program.
In Financial Year 2013-14, 371 in house training programmes

/ work shops were conducted covering 14566 employees. In
addition to this, 249 officers were trained in external trainings
conducted at NIBM, RBI/CAB/ BIRD, IDBRDT, & FEDAI.
(B) At Branches: Conducted weekly on-line tests for POs

on various topics/aspects while they were undergoing onthe-Board training at branches.
To have an International exposure and to equip themselves

with the accomplishments in the Global Financial Markets,
5 employees in different cadres were sent to external
programmes conducted abroad.
For the last one year, the college has taken various measures
to improve the usage of alternative delivery channels
especially mobile banking and internet banking. We are
making the participants to register for mobile banking and
also to initiate the transactions during the training program.
Alternative Delivery Channels
New Initiatives:
Conducted various exclusive three days training

programs on Usage of Alternative Delivery Channels and
its Marketing at Apex College
PO on Board Training
As a Part of HR transformation initiative under Navashakthi
project, the process of on-boarding of newly inducted
Probationary Officers has been revised as suggested by
the consultants-M/S Mckinsey. Accordingly the on the job
training of P.O.s is revised from the existing 12 months to 6
Months. The training programme for 6 months comprises of
three phases.
The participants were taken to various branches in

Hyderabad-I & II Zones to educate the customers
on features of Alternative Delivery Channels to gauge
the popularity of Mobile Banking and Internet Banking
of our Bank, in particular. During the process, we made
the customers to register for Mobile Banking and Internet
Banking.
We are forerunners in designing and implementing structured

approach in providing theoretical knowledge at training
centres and imparting practical exposure on the areas trained
at branches.
Off-the Classroom Initiatives

Apex College made its site within Banks portal more vibrant
with revised layout and started following off-the-classroom
initiatives through different e-publications
The main objective of the re-designing of training schedule is:

to help the POs to hone their skills and apply the
same in day-to-day operations
to enable them to accept higher responsibility and
challenges
During the training programme, we have conducted 22 weekly
on-line tests on the topics/areas as per the structured diary
provided to the newly inducted probationary officers. This
facilitated the top management to assess the capabilities/
caliber of the officers for placing them in suitable assignments
1.
Daily Financial News Bulletin (English & Hindi version)
2.
Weekly Last Week at Apex
3.
Weekly Know Your Circulars
4.
Weekly Customer Care
5.
Weekly Happy Weekend
6.
Weekly Mission Priority
Beyond Training College

To meet the specific training requirement of operational
level people at the instances of Zonal Offices, we have
conducted 78 trainings/work-shops on areas such as KYC/
AML, Credit Management, Credit Monitoring, Recovery
Management, Clean Note Policy, Marketing of Alternative
Delivery Channels. From these training/workshops, 3216
employees were trained.
POs from Manipal Academy

In association with Manipal University, our Bank has selected
259 candidates for undergoing one year PGDBF course at
Manipal University, Bangalore. On completion of 9 months
of the course, the students were posted and had undergone
internship at our Branches. During the internship, we have
39
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To align the staff working in Navsakthi branches with regard

to creating awareness on the products, Apex college has
conducted on site training sessions to the Pilot branches in
Hyderabad and Vijayawada zones.
On-Line OL Test is conducted throughout the Country.

Our Bank is the only Bank to conduct such an innovative
on-line Test every year.
An exclusive 4-page brochure was printed, besides
Rajbhasha Margdarshika, regarding OL Implementation
at Zonal and branch level. The same was sent to all ZOs
and branches.
10.8.3 Staff strength

Officers
Clerks
Sub Staff *
Total
Strength
% to total
10391
55.5%
5341
28.5%
2993
16.0%
18725
100.0%
Rajbhasha Link in AB Staff Portal has been revamped.

Besides Rajbhasha Mission, Banking Terminology,
Administrative Phraseology, Rajbhasha Margdarshika,
various formats, Important Circulars, other related
information, Hindi House Magazine, Monthly Hindi
e-bulletin and Hindi Workshop material has also been
kept in our Portal.
* Excluding Part Time Sweepers

10.8.4 SC/ST Profile
Our Bank has been implementing reservation policy for SCs
& STs as per Govt. of India guidelines. The representation
of SCs and STs is 3906 and 1459 respectively in the total
work force of 20279 working in Bank as on 31st March, 2014.
Out of total 10391 officers, 1775 belong to SC category and
782 belong to ST category. Bank has nominated a General
Manger as Chief Liaison Officer SCs & STs at Head Office
and all Zonal Managers as Liaison Officers at Zonal level
to address the grievances if any of SC & ST employees.
Bank has been regularly conducting quarterly joint meetings
with the representatives of SC & ST Employees Welfare
Association of Andhra Bank.
Official Language Implementation Committee of HO was

conducted on 28.06.2013, 12.09.2013, 13.12.2013 and
14.03.2014.
Bank is committed towards increase in Use of Hindi.
12. VIGILANCE
The Vigilance Department has achieved the target of
reviewing Assets & Liabilities statements of Officers
staff as per Central Vigilance Commission Guidelines.
The Department has achieved 100% compliance on review
of Assets & Liabilities Statements of Officers of Scale IV
and above.
10.8.5 Sports & Games
Preventive Vigilance Inspection was conducted in 1242

branches. The necessary guidance was given to all Zonal
Offices and branches advising them the corrective steps
in implementation of Procedures.
The Bank is encouraging sports in order to facilitate promotion

of sports and games to achieve excellence. The Bank has
recruited outstanding sports personnel in a few disciplines
like Cricket, Kabaddi, and Chess.
We have enlightened 14596 staff members on

Preventive Vigilance Procedures in 362 sessions
conducted by our Staff College throughout the Financial Year.
10.8.6 Persons with Disability (PWD)

Our Bank is providing 3% total vacancies arising in Officer,
Clerical and Sub Staff cadre in a year. The 3% posts are
distributed amongst 3 categories of Persons with Disabilities
i.e., Blindness or low vision (B/LV)- 1%; Hearing Impairment
(HI)- 1%; Loco motor disability or cerebral palsy (LM). The
representation of Persons With Disabilities is 321 (1.58%) in
total workforce of 20,279 as on 31st March, 2014.
We have received 81 complaints during the Financial

Year. The complaints were disposed off after investigation
of the allegations.
The Bank as a whole, observed Vigilance Awareness
Week from 28.10.2013 to 02.11.2013. The Vigilance
Pledge was administered by all the Members of the
Board, Executives and all Staff Members of the Bank.
11. OFFICIAL LANGUAGE IMPLEMENTATION
The Department has disposed off 128 number of

Vigilance cases involving RDA during the year.
Considering 89 number of Vigilance cases outstanding
at the beginning of the year, there are 79 number of
Vigilance cases as on 31.03.2014.
Hindi Quarterly Progress Report Submission has been

made On-line throughout the Country. Our Bank is
the first Bank to introduce such an innovative on-line
submission, which facilitates prompt and error-free
submission of Hindi Quarterly Progress Reports.
Vigilance Department has monitored implementation of

Ghosh Committee Recommendations by all branches
as a measure to prevent frauds and other loses.
On-Line Memory Test is conducted for all Zonal Offices

and branches where staff strength is 10 or more. This is
another novel and innovative on-line test introduced by
our Bank.
13. LEAD BANK SCHEME
Monthly Hindi e-bulletin is being brought out by Head

Office and 21 Zones. Our Bank is the first and the only
Bank in this novel initiative in our endeavour of increasing
Use of Hindi.
Andhra Bank is the Convener Bank for State Level Bankers

Committee, Andhra Pradesh since 1984 and so far conducted
182 SLBC meetings and during the current year SLBC has
conducted 43 meetings of different nature. Andhra Bank is
41
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42
also having Lead Bank responsibilities in six districts, viz.

Srikakulam, East Godavari, West Godavari, Guntur in Andhra
Pradesh and Ganjam, Gajapathi districts of Odisha State.
Bank is discharging all responsibilities in implementation of
Lead Bank Scheme.
covered by March, 2014, with the constant follow up of SLBC,

15,983 villages have been provided with banking channels as
on 31.03.2014, thus surpassing the target in advance.
Sub Service Area Approach-Mapping of Gram Panchayats
for coverage through Branch/ BCA/ CSC
Andhra Pradesh State is leading in the country with

outstanding Agricultural credit of ` 1.30 Lakh Crore and SHG
Bank linkage finance of ` 22,470 Crores extended to 14.97
Lakh SHGs as at the end of December, 2013 with CD ratio
118.79%, one of the highest.
GoI, vide their communication dated 20th December, 2012

advised that mapping of Gram Panchayats basing on sub
service area approach is to be done and banks need to
ensure that 1000 to 1500 households are available in the
sub-service area of BCA.
The Bank has effectively coordinated the implementation

of Ministry of Finance, Government of India guidelines for
coverage of uncovered farmers and other non farming
households and implementation of Financial Inclusion plan
in respect of villages with above and below 2000 population.
Accordingly, the exercise was completed in all Districts with

constant follow up of SLBC and all 22,170 Gram Panchayats
are mapped into 14,003 sub service areas.
Unbanked Mandals
SLBC has played an active role in ensuring provision of basic
banking services in unbanked and under banked areas. With
constant follow up the no. of unbanked mandals has brought
to one mandal from eight in the State of Andhra Pradesh.
As convener Bank for SLBC, Andhra Pradesh, sub

committees were constituted on Financial Inclusion, Housing
loans, Agricultural credit, Government sponsored schemes,
Lending to Minority Communities, Animal Husbandry and
MSME sector for focused attention.
Relocation of branches closed/shifted due to security

reasons in the past
APSLBC CALL CENTRE
SLBC has been constantly following with banks for relocation

of branches which were closed/shifted due to security
reasons in the past to their original place.
SLBC has established a Call Centre namely APSLBC CALL

CENTRE on behalf of all Banks in the state with toll free
telephone Number, SMS service and email queries facilities
to provide for an effective and centralized grievance redressal
and facilitation mechanism for opening of Bank accounts and
other banking related queries as part of financial inclusion.
The call centre is engaged in providing additional information
on farming and other beneficiary oriented programmes.
Direct Benefit Transfer scheme in Andhra Pradesh

SLBC has ensured all forms of support from all banks in the
state with regard to opening of accounts for beneficiaries
and linking their Aadhaar numbers to accounts for smooth
implementation of this scheme rolled out by GoI to implement
the Social Welfare Schemes in a foolproof manner. Regarding
implementation of DBTL Scheme, East Godavari, one of
the Lead Districts of Andhra Bank stood first in the state
with exemplary achievement of covering 93% of eligible
beneficiaries with bank accounts and Aadhaar seeding
under the scheme.
Integration of Land Records with Financial Institutions

in A.P
SLBC has taken the lead for Integration of land records and
providing an interface to the banks for viewing and updating
of mortgage details on real time basis which has been
successfully implemented in the state of Karnataka. With
a view to replicate the best practice in our state, SLBC has
taken the lead to study the issue and has taken up with the
Govt. of AP for its implementation in the state. SLBC has
been constantly pursuing for its implementation with GoAP
by NIC and now access has been provided for viewing the
land records at the branch itself. SLBC is now pursuing for
taking the project forward by allowing the banks to update
the mortgage details on real time basis.
Financial Literacy Material

In accordance with Reserve Bank of Indias directions, SLBC
has taken up the Printing of Financial Literacy Material
designed by RBI in vernacular language i.e., in Telugu, on
behalf of all banks in the state and supplied to the controllers
of all banks for onward distribution to their rural branches and
Financial Literacy Centers for taking up Financial Literacy
campaigns.
Pavala Vaddi & Vaddi Leni Runalu Scheme of GoAP for

Crop Loans
Website
SLBC is instrumental in formulating the guidelines and

implementation of Pavala Vaddi and Vaddi Leni Runalu
schemes of GoAP for farming community and also Zero
interest benefit scheme for women SHG groups.
An exclusive website is set up for SLBC of Andhra Pradesh

with URL www.slbcap.nic.in for the information of all the
stake holders and general public.
Road Map for Financial Inclusion in below 2000

population villages
Andhra Pradesh Bankers Institute of Rural and

Entrepreneurship Development (APBIRED) is a non-profit
society formed by Government of Andhra Pradesh, NABARD
and six Public Sector Banks including Andhra Bank.
14. APBIRED
SLBC has submitted the consolidated Road Map for 2013-16 to

Reserve Bank of India. Out of the target of 10,330 villages to be
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44
AEPS transactions at the villages. We are one of the few

Banks which have the capability to undertake off-us mode
of transactions also. It is our endeavor to ensure that going
forward, the FI outlets add to the Business development of
branches through growth in CASA.
The Institute imparts capacity building, entrepreneurship

development, project opportunity guidance, etc., to rural men
and women (in the age group of 18 years to 35 years), Rural
Entrepreneurs, rural SHG women and also promotes transfer
of appropriate technology to farmers and agriculturists in
Agriculture and Allied Activities.
Financial Literacy initiatives
15. FINANCIAL INCLUSION
Ground level publicity initiatives have been taken up in the

form of release of pamphlets, visit of villages, audio-video
documentary, mobile vans mounted with publicity material
etc., to promote Financial literacy in the FI villages.
Coverage of FI villages:
All the allotted FI villages having population of above 2000
have since been provided with Banking facility under FI and
transactions are in place. During 2013-14, the focus was on
customer enrollments, transactions through the CSPs, roll out
of other products in these villages. As at the end of March,
2014, 5.25 Lakh FI customer accounts (AB Grama Kranthi
Savings Bank) were opened which have builtin overdraft
facility of ` 500/-. During the year, RD product was launched
for the benefit of FI customers. In addition to these, inward
remittance and GCC products have already been enabled for
use by the FI customers. During the year we have covered
1991 villages in below 2000 population segment under subservice area basis.
Bank has established six Financial Literacy and Credit

Counseling Centres in our Lead Districts viz., Eluru, Guntur,
Kakinada and Srikakulam (in Andhra Pradesh) Ganjam and
Gajapathi (in Odisha). The centers are promoting financial
literacy activities and providing credit related extension
services.
Direct Benefit Transfer Scheme implementation:
We have ensured readiness to implement the Direct Benefit
Transfer (DBT) scheme as well as Direct Benefit Transfer
scheme for LPG (DBTL) in our operational areas. Action
plan strategies as directed by the DFS, MoF have been
implemented at ground level. As Lead Bank for the districts of
East Godavari, Guntur, Srikakulam and West Godavari in A.P.
we have ensured to surpass the stipulated Bank - Aadhaar
seeding progress in these pilot districts. As SLBC Convenor
for AP, we have coordinated with all Banks, Govt departments
and with other stake holders for effective implementation of
the scheme.
Kiosk Banking:
We have procured Kiosk technology for FI and successfully
implemented it during the year. All the remaining FI villages
under the category of below 2000 population have been
identified for coverage through kiosk mode. We have roped
in the services of M/s CSC e-Governance Services India Ltd
for coverage of 1,236 villages under this category in Odisha
State. We have also utilized the services of the Agency for
urban-FI implementation. The services of M/s Stree Nidhi
Credit Cooperative Federation Ltd, an organization promoted
by SERP, Govt of A.P. have been taken up for FI in 843
villages coming under below 2000 population category in the
State. Necessary steps are initiated to reduce the footfalls at
the branches by diversion of the specific category of the SB
group transactions to BC agent operated kiosks.
As at the end of March, 2014 in our Bank, over 34.50 lakh

customers have seeded their Aadhaar numbers with bank
accounts. Alternate channels such as SMS mode, ATM
and Internet mode have also been provided to enable the
customers seed Aadhaar numbers into their Bank accounts
without visiting the branches. We have on-boarded the
Aadhaar Payment Bridge (APB) / National Automated
Clearing House (NACH) duly customizing with NPCI. During
the year we have processed over 70.36 lakh records to the
tune of ` 473 crores through APB.
Transactions through PoS devices through BC agents:

There has been significant improvement in the number of
transactions through PoS devices during the year. About 5.91
Lakh transactions have taken place during the year 2013-14 as
against 1.25 Lakh transactions during 2012-13. Transactions
are happening in on-line mode and with centralized Bio metric
server authentication. Focus has been on maintaining good
connect between Branch/BC agent and the FI customers at
the village through conducting of campaigns in FI villages.
Designated Officers i.e. Ultra Small Branch Officers have been
identified to visit the FI villages on a specific day every week
for undertaking the specified activities. Nodal Officers for FI
have been assigned specific functions to monitor the activities
of BC agents/USB officers.
16. SUBSIDIARIES & REGIONAL RURAL BANKS

The Bank has one Subsidiary, namely, Andhra Bank Financial
Services Limited (ABFSL), which is wholly-owned by the
Bank. The Company has earned a profit of ` 166.58 Lakhs
before Income Tax and a Net Profit of ` 133.15 Lakhs after
Income tax during the year ended 31.03.2014. With this, the
negative net worth of the company has been brought down
from ` 1176.15 Lakhs to ` 1042.99 Lakhs as on 31.03.2014.
Bank has one sponsored Regional Rural Banks namely
Chaitanya Godavari Grameena Bank (CGGB) located in Guntur
(Andhra Pradesh), covering the districts Guntur, East Godavari
and West Godavari.
During the year about 550 AEPS (Aadhaar Enabled Payment

System) compliant microATMs have been deployed in the
field as per the action plan. The BC agents are undertaking
As on 31.03.2013, the total business of CGGB stood at

` 3391.37 Crore.
45
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46
NRI Cell has revived the NRI Bulletin (AB Connect) from
September, 2013 and sending the same to nearly 30000
NRI Customers (both existing and prospective) through email
every month. NRI Cell has launched a special campaign for
mobilisation of SBNRE, NRE Term & FCNR (B) Deposits
during the financial year 2013 - 14 and mobilized NRE
Deposits to the tune of ` 200 Crore during the campaign
period from 01.11.2013 to 31.03.2014. In order to sensitise
staff at branches NRI Cell has initiated training programmes
on NR Products at Apex College, Hyderabad for branches
which are having good amount of Non-Resident Deposits.
17. VISITS OF PARLIAMENTARY COMMITTEES

Inspection/Tour Programme of the Third subcommittee
of the Committee of Parliament on Official Language to
Hyderabad arrived on 08.07.2013. The committee
conducted meetings on 09.07.2013 with the authorities
of Andhra Bank, State Bank of Hyderabad and Central
Research Institute of Unani Medicine. Andhra Bank was
advised to coordinate the programme.
Study Tour Programme of the Standing Committee on
Finance of Parliament visited Hyderabad from 11.07.2013
to 12.07.2013. The committee had meetings with the
officials of Income Tax authorities, IRDA and Andhra Bank.
Total NRI business of the Bank increased from ` 1,310 Crore

as on 31.03.2013 to `1,728 Crore as on 31.03.2014, i.e. a
growth rate of 31.9%. NRE Deposits, TD NRE and FCNR (B)
deposits increased from ` 1,053 Crore as on 31.03.2013 to
` 1,499 Crore as on 31.03.2014 registering an annual growth
rate of 42.4%.
18. ANDHRA BANK RURAL DEVELOPMENT TRUST

Under the aegis of Andhra Bank Rural Development Trust,
Bank has set up 11 Rural Self Employment Training Institutes
(RSETIs) at various centres (in A.P., Odisha, and Kerala
states) and is imparting need based training for capacity
building/entrepreneurial development and dissemination
of knowledge to farmers, SHG women, Rural unemployed
youth and artisans.
21. BRANDING AND COMMUNICATIONS

The Bank is introducing Anytimers a unique Marketing
Initiative to encourage customers to migrate to electronic
mode i.e, Internet Banking, Mobile Banking, ATM services,
Debit Cards and Credit Cards for their Banking needs.
Since inception, 128197 candidates have been trained through

4222 programmes by the Institutes and around 66.98% of the
trained candidates are engaged in gainful ventures.
The Anytimers concept will be extensively integrated into the

Marketing strategy for acquisition of new customers and build
a Tech savvy and eco friendly society. As a part of Anytimers
the Bank would also be introducing TAB banking shortly to
take Banking to the Customer Locations.
The Rural Self Employment Training Institutes and Financial

Literacy Centres established by Bank in various locations
across the country are also undertaking programs to educate
the people on banking and financial matters. During the year
2013-14, 414 training programs have been conducted by the
11 RSETIs for the benefit of 10,609 candidates.
The Bank released a new Gesture formed by the Thumb

and the Pointer associated with Anytimers to get instant
recall to the Digital Banking and would be used extensively
across the Social Media attracting the new Generations and
good Brand Recall.
Our RSETI at Rajahmundry has been adjudged as the

best RSETI among all the Institutes by the Ministry of Rural
Development, Govt of India for the second consequent year.
Out of the 11 RSETIs sponsored by Bank, 10 have RSETI
have secured the highest rating of AA by MoRD, Govt of
India for the year 2012-13.
The Bank has also sponsored various programs on Arts,

Culture and Music which enhanced the Brand value. The
department has managed the event Celebrating 90 the
banks journey of dedicated services to the Customer and
creating value to the stake holders.
19. SECURITY ARRANGEMENTS
21.1 NAVSHAKTI PROJECT
High priority was accorded to up-grade security arrangements

at branches, currency chests and ATMs. 1579 branches and
977 ATMs were brought under CCTV surveillance. Installation
of CCTV system in remaining branches and ATMs is in
progress. Installation of Integrated Burglar Alarm System in 383
vulnerable branches is in progress. Efforts are on to enhance
security measures and minimize crime rate against our Bank.
A Strategic Business Transformation Project Navshakti was

undertaken in the Bank with M/s Mckinsey & Co., a reputed
global consulting firm, as our consultants with the following
objectives:
Overall Business Transformation Strategy for the Bank
for the next 3 to 5 years
20. NRI CELL
Improve CASA & Retail Deposits. Steps to improve

branch sales and productivity.
The NRI Cell was set up with a view to serve as an effective

channel of communication between the Bank and its NRI
Clientele thereby increasing NRE Deposits. The Cell supports
and guides the Representative Offices for betterment of
Customer Service among NRIs of respective countries by
maintaining liaison with the officials of Representative Offices.
It does regular correspondence with the NRI customers of
the Bank and attends to the clarifications, grievances if any,
besides marketing products of the Bank.
Improve Retail Loans. Development structure and

process for optimal Retail Loan marketing, sanctioning
and disbursement.
Improve SME Loan portfolio, Develop structure and
processes for optimal SME loan marketing, sanctioning
and disbursement.
H R Transformation
47
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48
Develop methodology and roll out plan for knowledge

transfer so as to help the Bank to replicate the processes,
at other Branches in all the areas of CASA, Retail and
SME Portfolios.
The fifteen month long project got underway in the month
of February 2013 and in this thirteen month period has
moved forward in achievement of its laid down objectives
in all the initiatives under taken.
The Bank has branded the Navshakti project and the
entire Branch Transformation to give the branches across
India a visible and vibrant face by imbibing new branding
elements. The Color Change played a significant element
in the Brand Change and had a good brand recall.
Branch transformation-Nextgen Pilots
The first and foremost task taken up was launch of
NextGen branches under the branch transformation
initiatives intended to give customers a delightful banking
experience and convenience with a 24 / 7 / 365 e banking
lobby. As at the end of March 2014 we have more than
100 branches working under the NextGen model in
various parts of the country.
Branch Leadership Programme (BLP)
A six month long forum and field based Branch Leadership
program was also undertaken as a part of the project to
train and equip 40 of our Branch Managers and 12 second
level officials from Zonal Offices to equip them with the
leadership skills and in the NextGen model.
Retail Loan Express Centre and SME Express Centre
Setting up of centralized Retail Loan processing Centre
named as Retail Loan Express Centre with a view to
give boost to our efforts to improve retail loan portfolio is
another initiative taken up under the project .The unique
feature of these centres is to have an exclusive outbound
sales team to mobilize retail loans by moving in the micro
markets allotted to each of them. We have the Retail
Loan Expresses in three zones, viz., Hyderabad I & II
and Bengaluru Zones.
Similarly two centralized SME loan processing centres
were started on a pilot basis to take up proposals of
Rs.50.00 Lakhs and above for processing at Hyderabad
II zone and Chennai. Outbound sales team with a mix of
young and experienced officers is an integral part of
the design of these centres. The outbound sales team is
expected to move in the micro markets and source the
proposals for branches in their respective zones.
HR Transformation
HR Transformation encompassing the entire gamut of HR
Portfolio starting with Strategies for HR Development, HR
processes, Capability building, Competency Mapping,
Succession Planning etc. is another key element of the
Strategic Business Transformation project. The initiatives
undertaken under HR Transformation starting with a fully
revamped forum and field based PO Onboarding program
for new recruits are progressing as per schedule. Under
the PO on-boarding program 1300 newly recruited
officers were trained through an intensive 6 month long
program.The faculty at the Apex college were also trained

to carry forward the initiatives in future. Works on the new
Performance Management system and Succession
Planning documents have since been completed and
will be taken for implementation in the coming year.
A design document for aiding the ongoing E-learning
program taken up by the Bank, had also been given
21.2 CORPORATE SOCIAL RESPONSIBILITY
120 solar street lights were installed in 15 remote service
area villages of Andhra Bank branches situated in Eluru,
Kakinada and Berhampur Zones.
In Flouride affected vilalge in Srikakulam District,
protected water supply was provided.
To assist the Philin Cycone affected people, bank
distributed kits worth ` 10.00 Lakhs to cyclone victims
in Odisha state.
As part of Corporate Social Responsibility, the Bank has
sanctioned a total amount of ` 2,39,89,760/- for providing
support to various activities.
22. BANKS WEB SITE
The Bank maintains its website www.andhrabank.in in three
languages, viz., English, Hindi and Telugu for providing
information about the Bank, its services and products offered.
This website is facilitating visitors to interact with Bank in the
form of inquiry, feedback, grievance, thereby paving the way
for availing its services. The interest rates on various products
offered by the Bank are being updated on continuous basis.
Information relating to Online services like Internet Banking,
utility payments, Tax payment and other online services are
made available on the website. The Bank has made its WCAG
(Web Content Accessibility Guidelines) website accessible
to visually impaired persons, as per Government of India
guidelines.
The Bank has put new online module for displaying
Inoperative accounts as per RBI guidelines and is being
updated monthly.
The Bank being the Convener of State Level Bankers
Committee, Andhra Pradesh, maintains separate website
www.slbcap.nic.in. This website communicates all the
proceedings of SLBC Meetings, State Government directives,
instructions to Bankers and public.
The Bank follows meticulously CERT-In (Indian Computer
Emergency Response Team) guidelines issued from time to
time in maintaining Banks Website securely.
23. AWARDS AND REWARDS
ABIRD, Rajahmundry was awarded as best performing
RSETI for FY 2012-13 in the country for second year in
succession.
The bank has received second best bank award for
nurturing the RSETI movement in the country for the year
2012-13.
NIRED, Rajam secured award for 3rd Best RSETI in the
country for FY 2012-13.
ABIRD, Eluru & Machilipatnam have received consolation
Awards for Best RSETIs for FY 2012-13.
49
. . , .12.03.2014

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50
(..])

24. OUTLOOK FOR 2014-15
Sri K.R. Ananda, RBI Nominee Director, ceased to be the

Director on 12.03.2014.
The outlook for Indian economy has improved over the

previous months with cautiously positive business sentiments,
improved consumer confidence, expectations of a modest
recovery in growth and decline in inflation expectations.
Sri E.E. Karthak joined the board as RBI Nominee Director

on 13.03.2014.
Sri Manoranjan Das, Workmen Employee Director,
ceased to be the director on 10.05.2013.
As per RBIs Survey of Professional Forecasters, a modest

recovery is expected in 2014-15 with growth around
5.5%. The expected CPI inflation for 2014-15 was revised
downwards to 8.0% from 8.5% in previous round of the
survey. The forecast for Current Account Deficit (CAD) in
2014-15 is also now significantly lower at 2.4% of GDP.
Sri K. Thamaraiselvan joined the board as Workmen

Employee Director on 25.11.2013.
S r i N . R a j a G o p a l R e d d y, O ff i c e r E m p l o y e e
Director ceased to be the director on 30.06.2013.
Sri Nagi Reddy Venkata Ramana Reddy, Part-Time Non
Official Director ceased to be the director on 28.07.2013
and joined the board on being re-nominated as Part-Time
Non-Official Director on 15.10.2013.
Improved confidence along with sustained support to

infrastructure projects could translate into a slow-paced
recovery in 2014-15. Persistent high inflation continues
to pose a challenge to growth over the medium-term,
even though the CAD has been contained through policy
responses. Therefore, weak demand, uncertain monsoon
trajectory and high inflation appear to be among the factors
restraining growing optimism.
Dr. Naina Sharma joined the board as Part-Time Non

Official Director on 12.12.2013.
Sri Amit Goel joined the board as Part-Time Non-Official
26. DIRECTORS RESPONSIBILITY STATEMENT
A moderate and slow-paced recovery in 2014-15 is likely to

be supported by a pick-up in investment activity on account
of part resolution of stalled projects and improved business
and consumer confidence. Manufacturing PMI for the month
of February 2014 touched a years high on the back of higher
output and new orders. The rural demand base is likely to
shore up demand following record agricultural output. In
addition, external demand is expected to improve further
during 2014-15 stemming from encouraging prospects for
global growth.
The Board of Directors hereby states that

The applicable accounting standards have been followed
in the preparation of the annual accounts and proper
explanations have been furnished, relating to material
departures.
Accounting policies have been selected, and applied
consistently and reasonably, and prudent judgments
and estimates have been made so as to give a true
and fair view of the state of affairs of the Bank and of
the Profit & Loss of the Bank for the Financial Year ended
31.03.2014.
As per RBI, headline inflation is expected to trend down aided

by favourable base effects. It may bottom out in Q3 of 201415 before large adverse base effects and expected improved
activity take inflation back to around the current levels. Risks
to inflation are more on the upside.
Proper and sufficient care has been taken for the

maintenance of adequate accounting records,
in accordance with the provisions of the Companies
(Amendment) Act, 2000, for safeguarding the assets of
the Bank and for preventing and detecting fraud and other
irregularities.
Downside risks to growth have increased marginally since

January 2014 taking into account the continued weak
performance of industry and increase in risks to agriculture
from the El Nino phenomenon. Tighter global financial
and monetary conditions, in addition to continued fiscal
adjustment in some countries can also drag recovery.
Recovery largely remains contingent on improvements in
the investment climate.
The annual accounts have been prepared on a going

concern basis.
27. ACKNOWLEDGEMENT
Andhra Bank is grateful to the Government of India, RBI, SEBI
and other authorities/agencies, Financial Institutions and
Correspondent Banks for their valuable support and guidance.
The Directors also express their deep sense of appreciation to
all the staff members of the Bank for their dedicated service,
outstanding professionalism and commitment towards Banks
vision for a sustainable growth. Finally, the Directors wish to
sincerely thank all the customers, shareholders and other
stakeholders for their valuable support.
25. CHANGES IN THE BOARD DURING THE YEAR

The following changes took place in the composition of the
Board of the Bank during the Financial Year 2013-14:
Sri B.A. Prabhakar, Chairman and Managing Director,
ceased to be the Director on 31.08.2013 due to
superannuation.
Sri C.VR. Rajendran assumed charge as Chairman and
Managing Director on 13.12.2013.
Sri Mohammad Mustafa, Govt. Of India Nominee Director,
ceased to be the Director on 29.09.2013.
For and on behalf of the Board,

Place : Hyderabad
Date : 09.05.2014
Sri Anandrao Vishnu Patil joined the board as Govt. Of

India Nominee Director on 30.09.2013.
51
(C.VR Rajendran)
31-03-2014 III ( III)

- I ]
, ]
2 ] () ] . 11 12
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(i)
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27

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..72/21.04.
018/ 2001-02,
25, 2003

() \/
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i. /,
ii. \ /,
iii. () /,
iv. () \/,
) \ ] \ :
/

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52

(

)
Disclosures under Basel III Capital Regulations (Pillar III) as on 31.03.2014

Table DF-1: Scope of Application
Name of the head of the banking group to which the framework applies: Andhra Bank
(The Capital to Risk Weighted Assets Ratio (CRAR) reported in DF 2 pertains to Solo & Consolidated position of the
Bank. The Composition of Capital furnished in DF 11 & DF12 pertains to the Consolidated position of the Bank. All other
disclosures in this report pertain to Andhra Bank (Solo)
(i) Qualitative Disclosures:
Name of the entity/ Whether the entity
country of
is included under
incorporation
accounting scope
of consolidation
(yes/no)
Explain the
method of
consolidation
Whether the entity

is included under
regulatory scope
of consolidation
(yes/no)
Explain the
method of
consolidation
Explain the
Explain the reasons
reasons for
if consolidated under
difference in
only one of the
the method
scopes of
of consolidation
consolidation
Subsidiary:
Andhra Bank
Financial Services
Limited/India
Yes
AS21- Line by
Yes
line aggregation
of each item of
asset/liability/
income/expenses
AS21- Line by
NA
line aggregation
of each item of
asset/liability/
income/expenses
NA
AS23- Equity
Method
Yes
AS23- Equity
Method
NA
NA
AS27Proportionate
consolidation
No
NA
Regulatory
guidelines applied
to an Insurance
entity.
The entity is engaged

in Insurance activity.
Hence, excluded from
the regulatory scope of
consolidation in terms
of Circular no. DBOD.
No.BP BC.72/21.04.
018/2001-02 dated
February 25, 2003.
AS27Proportionate
consolidation
NA
NA
NA
NA
Associate:
Chaitanya Godavari Yes
Grameena Bank/
India
Joint Ventures:
India First Life
Yes
Insurance Company
Limited/India
ASREC (India)
Limited/India
Yes
Yes
India International
bank (Malaysia)
BHD / Malaysia
Yes
Yes
a.
List of group entities considered for consolidation:
(i)
Andhra Bank Financial Services Limited/India, Subsidiary
(ii) Chaitanya Godavari Grameena Bank/India, Associate

(iii) ASREC (India) Limited/India, Joint Venture
(iv) India International bank (Malaysia) BHD / Malaysia, Joint Venture
b.
List of group entities not considered for consolidation both under the accounting and regulatory scope of consolidation.
Name of the entity/

country of
incorporation
Principle activity
of the entity
Total balance
sheet equity
(as stated in the
accounting
balance sheet
of the legal entity)
% of bank's
holding in the
total equity
NIL
53
Regulatory treatment
of Bank's investments
in the capital
instruments of
the entity
Total Balance Sheet

assets (as stated
in the accounting
balance sheet of
the legal entity)
(ii)
) \ ] \ :
/

, ,

]

\
/
()

/

() \/

(
)
(54.30)
( )

(
)
307.37
1465.09
30532.01
1270.31
1713.31
5911.30
8698.39
) ]- , ] - ]
/

(
)
]
the entity
) , ] ]- ( ] \
/

(

)
3505.73
30%
( )

]

]

]
]

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- 2 ]
()
]
-II -III ] .
-II -III ] [\ . ]
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] ] ] ] \ ] ]
.
] ] ] \
]
54
(ii) Quantitative Disclosures:

c. List of group entities considered for consolidation:
(`. in Million)
Name of the entity / country
of incorporation
Principle activity of the entity
Total balance Sheet equity (as

stated in the accounting balance
sheet of the legal entity)
Total balance sheet assets ( as

stated in the accounting balance
sheet of the legal entity)
Andhra Bank Financial

Services Limited/India
Leasing, Hire Purchase, Merchant

Banking and other financial
services for which it was
established. However, no activity
is undertaken now.
(54.30)
307.37
Chaitanya Godavari
Grameena Bank/India
Banking
1465.09
30532.01
ASREC (India) Limited/India
Securitisation and Reconstruction

of Financial Assets
1270.31
1713.31
India International bank

(Malaysia) BHD / Malaysia
Banking
5911.30
8698.39
d. The aggregate amount of capital deficiencies in all subsidiaries which are not included in the regulatory scope
of consolidation i.e. that are deducted:
Name of the subsidiaries/
country of incorporation
Principle activity of
the entity
Total Balance Sheet equity (as

stated in the accounting
balance sheet of the legal entity)
% of bank's holding in the

total equity
Capital deficiencies
NIL
e. The aggregate amounts (e.g. current book value of the Bank's total interests in insurance entities, which are risk
weighted:
(` in Million)
Name of the insurance Principle activity of
entities / country of
the entity
incorporation
Total Balance Sheet equity

( as stated in the accounting
balance sheet of the legal
entity)
% of Bank's holding in the

total equity / proportion of
voting power
Quantitative impact on
regulatory capital of
using risk weighting
method versus using
the full deduction method
India First Life Insurance Insurance Business

Company Limited/India
3505.73
30%
The method of risk

weighting is being followed
as applicable
f. Any restrictions or impediments on transfer of funds or regulatory capital within the banking group: Nil
Table DF-2: Capital Adequacy
(a) Qualitative disclosures:
A summary discussion of the bank's approach to assessing the adequacy of its capital to support current and future activities:
Bank is geared up to adopt global best practices while implementing risk management stipulations that are in conformity with the Basel II and Basel
III framework. Comprehensive risk management architecture is in place to address various issues concerning Basel II and Basel III. For periodic
assessment of Capital needs of the Bank, an Internal Capital Adequacy Assessment (ICAAP) Committee/ Capital Planning Committee comprising the
top executives has been constituted, to monitor and assess the Capital requirement of the Bank over the medium horizon of 4-5 years, keeping in view
the anticipated growth in the business and corresponding Risk Weighted Assets in Credit Risk, Market Risk and Operational Risk.
The Committee meets regularly and decides on the capital related issues, with due focus on different options available for capital augmentation and
realignment of Capital structure duly undertaking the scenario analysis for capital optimization.
55
) ] ]

]
) ] ] ]
-
] ]
] ( )
]
) \ ] ]
- \
) ] ()
-
- I (%)
(%)
]
- (%)
- I (%)
(%)
] ,
- I
.31.03.2014
(. )
8649.77
NIL
364.40
1.35
61.75
673.82
7.96%
8.09%
10.78%
8.03%
8.16%
10.86%
NA
- 3

) ] ] ( ] )
, ] , ] ] . ] ()
, ] i) ] ] / 90 ] ,
ii) / (/) , ] ] .
iii) / ] 90 ] .
iv) ] ] ]
v) ] ] ] .
vi) 1, 2006 - \ 90
]
vii) , ]
90
] , ] 90 ]

- ] i. ] /
ii. \ ] / , 90 ]

iii. ] ]
56
Quantitative disclosures:
` in Core
Items
Amount as on 31.03.2014
(b) Capital requirements for credit risk

Portfolios subject to standardized approach
Securitisation exposures
8649.77
NIL
(c) Capital requirements for market risk

- Standardized duration approach
Interest rate risk
364.40
Foreign exchange risk (including gold)
1.35
Equity position risk
61.75
(d) Capital requirements for operational risk

- Basic indicator approach
673.82
(e) Capital Adequacy Ratios (solo)

Common Equity Tier I
7.96%
Tier 1 CRAR (%)
8.09%
Total CRAR (%)
10.78%
Capital Adequacy Ratios for the consolidated Position

Common Equity Tier I
8.03%
Tier 1 CRAR (%)
8.16%
Total CRAR (%)
10.86%
Total and Tier I CRAR for the Significant Subsidiary

which is not under consolidated group
NA
Table DF-3: Credit Risk: General Disclosures for All Banks

Qualitative Disclosures:
(a) General qualitative disclosures with respect to credit risk
Definition of past due and impaired (for accounting purposes):
An Asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank. A Non
Performing Asset (NPA) is a loan or an advance where:
i.
interest and/ or installment of principal remain overdue for a period of more than 90 days in respect of a Term
Loan,
ii.
the account remains out of order as indicated below, in respect of an Overdraft/Cash Credit (OD/CC), *
iii.
the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,
iv.
the installment of principal or interest thereon remains overdue for two crop seasons for short duration crops,
v.
the installment of principal or interest thereon remains overdue for one crop season for long duration crops,
vi.
the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation
transaction undertaken in terms of guidelines on Securitisation dated February 1, 2006.
vii.
in respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a
derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.
In case of interest payments, banks should, classify an account as NPA only if the interest due and charged during any
quarter is not serviced fully within 90 days from the end of the quarter.
*Out of Order status - An account is treated as out of order if
i.
the outstanding balance remains continuously in excess of the sanctioned limit/drawing power;
ii.
the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but
there are no credits continuously for 90 days as on the date of Balance Sheet; or
iii.
credits are not enough to cover the interest debited during the same period.
57
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, ,
- , -
- ]
- ] \ , \ \
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4. ] \ ]
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58
Accounts with temporary deficiencies - The classification of an asset as NPA is based on the record of recovery. Bank
does not classify an advance account as NPA merely due to the existence of some deficiencies which are temporary
in nature such as non-availability of adequate drawing power based on the latest available stock statement, balance
outstanding exceeding the limit temporarily, non-submission of stock statements and non-renewal of the limits on the due
date, etc. In the matter of classification of accounts with such deficiencies the following guidelines are adopted:
Bank ensures that drawings in the working capital accounts are covered by the adequacy of current assets, since
current assets are first appropriated in times of distress. Drawing power is arrived at based on the stock statement
which is current .i.e. (not older than 3 months)
A working capital borrowal account will become NPA if drawings are permitted against stock statement of older
than 3 months in the account for a continuous period of 90 days even though the unit may be working or the
borrowers financial position is satisfactory.
An account where the regular/ ad hoc credit limits have not been reviewed/ renewed within 180 days from the due
date/ date of ad hoc sanction will be treated as NPA.
Agricultural advances:
A loan granted for short duration crops is treated as NPA, if the installment of principal or interest thereon remains overdue
for two crop seasons. A loan granted for long duration crops is treated as NPA, if the installment of principal or interest
thereon remains overdue for one crop season. For the purpose of these guidelines, long duration crops are crops with
crop season longer than one year and crops, which are not long duration crops, are treated as short duration crops. The
crop season for each crop, which means the period up to harvesting of the crops raised, would be as determined by the
State Level Bankers Committee in each State. Depending upon the duration of crops raised by an agriculturist, the above
NPA norms are also made applicable to agricultural term loans availed of by him.
Discussion of the Banks Credit Risk Management Policy
Strategies and Processes:
Credit Risk is defined as the possibility of losses associated with diminution in the credit quality of borrowers or
counter parties. There is always a possibility for the borrower to default from his commitments for various reasons, resulting
in crystallization of Credit risk to the Bank. These losses could stem from outright default due to inability or unwillingness of
a customer or counter party to meet commitments in relation to lending, trading, settlement and other financial transactions.
Alternatively, losses result from reduction in portfolio value arising from actual or perceived deterioration in credit quality.
Credit risk is, therefore, a combined outcome of Default Risk & Exposure Risk and arises from the Banks dealings with or
lending to a corporate, individual, bank, financial institution or a sovereign.
Credit risk may take the following forms:
in the case of direct lending: principal/and or interest amount may not be repaid;
in the case of guarantees or letters of credit: funds may not be forthcoming from the constituents upon crystallization
of the liability;
in the case of treasury operations: the payment or series of payments due from the counter parties under the
respective contracts may not be forthcoming or ceases;
in the case of securities trading businesses: funds/ securities settlement may not be effected;
in the case of cross-border exposure: the availability and free transfer of foreign currency funds may either cease
or restrictions may be imposed by the sovereign.
The effective management of credit risk is a critical component of comprehensive risk management and is essential for the
long - term success of any banking institution. Credit Risk Management encompasses identification, measurement through
credit rating/scoring, quantification through estimate of expected loan losses, pricing on a scientific basis and controlling
through effective Loan Review Mechanism & Portfolio Management.
The Bank has in place a Credit Risk Management Policy which is reviewed from time to time. Over the years, the policy
and procedures in this regard have been refined as a result of evolving concepts and actual experience. The policy and
procedures have been aligned to the approach laid down in Basel II/Basel-III guidelines
The Credit Risk Management Policy is designed with the following Objectives.
1. Enhance the risk management capabilities to ensure orderly and healthy credit growth.
2. Maintain the Asset Quality.
3. Maintain credit risk exposure within acceptable parameters/prudential exposures.
4. Manage the asset portfolio in a manner that ensures bank has adequate capital to hedge risks.
5. Build database necessary for migration to the Internal Ratings Based (IRB) approach, using the Credit Risk Rating
Model implemented in the Bank.
6. Mitigate and reduce the risk by streamlining the Systems and Controls.
59
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31.03.2014

110649.04

17618.18
) , ] .
) ]
31.03.2014 () { {:
31.12.2013 ( ) .102644.09
.

]
) - ]
4 ] ( )
5
) ]
6 , ]
7
8 \
9 ]
10
11
12
9.00
10.00
22.00
2.00
5.00
10.00
3.00
5.00
6.00
5.00
5.00
2.00
5.00
1.00
1
2
3
9237.97
10264.41
21531.70
2052.88
5132.20
10264.41
3079.32
5132.20
6158.65
5132.20
5132.20
2052.88
5132.20
1026.44
60
31.03.2014

]
5627.26
1037.04
14642.59
1181.82
2502.54
7917.85
930.65
1995.64
2853.85
1452.57
1895.93
716.16
750.93
237.21
( )

31.12.2013

5.48
1.01
14.27
1.15
2.44
7.71
0.91
1.94
2.78
1.42
1.85
0.70
0.73
0.23
Structure and organisation of the Credit risk management function

Credit Risk Management structure of the Bank is as under-
Board of Directors
Risk Management Committee of the Board
Credit Risk Management Committee (CRMC)
General Manager-Integrated Risk Management Department (Chief Risk Executive)-Head Office
Credit Risk Management Cell, Integrated Risk Management Department, Head Office
Scope and nature of credit risk reporting and measurement systems:

The measurement of Credit Risk includes setting up exposure limits to achieve a well diversified portfolio across dimensions
such as companies, group companies, industries, collateral type and geography. For better risk management and avoidance
of concentration of Credit Risks, internal guidelines on prudential exposure norms in respect of individual companies,
group companies, Banks, individual borrowers, non-corporate entities, sensitive sectors such as capital market, real estate,
sensitive commodities, etc., are in place.
Policies for hedging and mitigating risk and strategies and processes for monitoring the continuing effectiveness
of hedges/ mitigants:
The bank also has a well defined Loan Policy in place. The bank has formulated policies & procedures on standards for
presentation of credit proposals, financial covenants, rating standards and benchmarks, delegation of credit approving
powers, prudential limits on large credit exposures, asset concentrations, standards for loan collateral, portfolio management,
loan review mechanism, risk concentrations, risk monitoring and evaluation, pricing of loans, provisioning, regulatory/legal
compliance etc.
Quantitative Disclosures:
b) The total Gross Credit Risk Exposures are :
(` in Cr.)
Category
Amount as on 31.03.2014
Fund Based
110649.04
Non Fund Based
17618.18
c) Bank has no Overseas Branches. Hence, Geographical exposures are not given.
d) Industry type distribution of exposures:
INDUSTRY WISE INTERNAL (FUNDED) EXPOSURE CEILINGS AND EXPOSURE AS ON 31.03.2014
TOTAL ADVANCES AS ON 31.12.2013 (PREVIOUS QUARTER), ` 102644.09
(` in Cr.)
Sl.
Industry
Ceilings as % of total Ceiling amount on Actual Fund based Exposure as % of
No
advances of previous total advances of
exposure as on
total advances of
quarter
previous quarter
31.03.2014
previous quarter i.e.
31.12.2013
1 TEXTILES
9.00
9237.97
5627.26
5.48
2 PETROLEUM PRODUCTS
10.00
10264.41
1037.04
1.01
3 POWER
22.00
21531.70
14642.59
14.27
a)Renewable Energy
2.00
2052.88
1181.82
1.15
4 ENGINEERING (HEAVY&LIGHT)
5.00
5132.20
2502.54
2.44
5 NBFC
10.00
10264.41
7917.85
7.71
a) NBFC of which against GOLD collaterals
3.00
3079.32
930.65
0.91
6 DIAMONDS GEMS & JEWELLERY
5.00
5132.20
1995.64
1.94
7 RICE MILLS
6.00
6158.65
2853.85
2.78
8 SUGAR
5.00
5132.20
1452.57
1.42
9 DRUGS & PHARMACEUTICALS
5.00
5132.20
1895.93
1.85
10 TOBACCO
2.00
2052.88
716.16
0.70
11 CEMENT & CEMENT PRODUCTS
5.00
5132.20
750.93
0.73
12 DISTILLERIES
1.00
1026.44
237.21
0.23
61
13
14
15
16
17
18
19
20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

10.00
10264.41
6659.67

10.00
10264.41
3380.27
1.50
1539.66
223.29
3.00
3079.32
581.77
3.00
3079.32
1089.42

2.00
2052.88
563.50
]
7.00
7185.09
3166.80

15.00
15396.61
9845.43
31.03.2014 ( ) { {:
31.12.2013 ( ) - . 26585.25

]
] ( )

,]

\
]
4.00
1.00
10.50
12.00
5.00
3.00
2.00
4.00
6.00
0.50
2.00
0.50
14.00
50.00
1.00
1.50
1.50
2.00
2.00
1063.41
265.85
2791.45
3190.23
1329.26
797.56
531.71
1063.41
1595.12
132.93
531.71
132.93
3721.94
13292.63
265.85
398.78
398.78
531.71
531.71
0 1
2 7
8 14
15 28
29 3
3 6
6 1
1 3
3 5
5
()
307.33
860.30
1886.75
1893.24
12322.53
6349.70
9811.65
44007.62
12744.96
17460.14
107644.22
62
29.74
709.6
390.82
784.82
791.23
301.24
1159.18
4918.46
6910.49
29643.70
45639.29
6.49
3.29
0.22
0.57
1.06
0.55
3.09
9.59
( )
31.03.2014

31.12.2013

] %
856.13
23.30
2580.00
1947.85
527.00
34.31
86.22
285.86
1115.17
34.50
107.40
25.32
3116.09
4290.59
36.83
175.90
47.74
63.32
168.28
3.22
0.09
9.70
7.33
1.98
0.13
0.32
1.08
4.19
0.13
0.40
0.10
11.72
16.14
0.14
0.66
0.18
0.24
0.63
( )

507.09
32.88
44.25
100.08
528.10
768.88
4.59
0
0
0
1985.87
13 IRON & STEEL
10.00
10264.41
6659.67
6.49
14 CONSTRUCTION & CONTRACTORS
10.00
10264.41
3380.27
3.29
15 SOFTWARE
1.50
1539.66
223.29
0.22
16 HOSPITALS
3.00
3079.32
581.77
0.57
17 HOTELS
3.00
3079.32
1089.42
1.06
18 EDUCATIONAL INSTITUTIONS
2.00
2052.88
563.50
0.55
19 COMMERCIAL REAL ESTATES
7.00
7185.09
3166.80
3.09
15.00
15396.61
9845.43
9.59
20 HOUSING LOANS
INDUSTRY WISE INTERNAL (NON-FUNDED) EXPOSURE CEILINGS AND EXPOSURE AS ON 31.03.2014

TOTAL NON-FUNDED Limits AS ON 31.12.2013 (PREVIOUS QUARTER), ` 26585.25 Cr.
(` in Cr.)
Sl.
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
e)
Industry
Ceilings as % of
Non Fund Limits
of previous quarter
TEXTILES
4.00
PETROLEUM PRODUCTS
1.00
POWER
10.50
ENGINEERING (HEAVY&LIGHT)
12.00
NBFC
5.00
DIAMONDS GEMS & JEWELLERY
3.00
RICE MILLS
2.00
SUGAR
4.00
DRUGS & PHARMACEUTICALS
6.00
TOBACCO
0.50
CEMENT & CEMENT PRODUCTS
2.00
DISTILLERIES
0.50
IRON & STEEL
14.00
CONSTRUCTION & CONTRACTORS
50.00
SOFTWARE
1.00
HOSPITALS
1.50
HOTELS
1.50
EDUCATIONAL INSTITUTIONS
2.00
COMMERCIAL REAL ESTATES
2.00
Residual contractual Maturity breakdown of assets:
Maturity Pattern
0 to 1 day
2 to 7 days
8 to 14 days
15 to 28 days
29 days to 3 months
Over 3 months & upto 6 months
Over 6 months & upto 1 year
Over 1 year & upto 3 years
Over 3 year & upto 5 years
Over 5 years
Total
Ceiling amount on
Non Fund Limits
of previous quarter
Actual Non Fund

based exposure
as on 31.03.2014
Exposure as % of
Non Fund Limits of
Previous Quarter
i.e. 31.12.2013
1063.41
265.85
2791.45
3190.23
1329.26
797.56
531.71
1063.41
1595.12
132.93
531.71
132.93
3721.94
13292.63
265.85
398.78
398.78
531.71
531.71
856.13
23.30
2580.00
1947.85
527.00
34.31
86.22
285.86
1115.17
34.50
107.40
25.32
3116.09
4290.59
36.83
175.90
47.74
63.32
168.28
3.22
0.09
9.70
7.33
1.98
0.13
0.32
1.08
4.19
0.13
0.40
0.10
11.72
16.14
0.14
0.66
0.18
0.24
0.63
Advances (Net)
Investments
307.33
860.30
1886.75
1893.24
12322.53
6349.70
9811.65
44007.62
12744.96
17460.14
107644.22
29.74
709.6
390.82
784.82
791.23
301.24
1159.18
4918.46
6910.49
29643.70
45639.29
63
(` in Cr.)
Foreign Currency Assets
507.09
32.88
44.25
100.08
528.10
768.88
4.59
0
0
0
1985.87
) ()
\)
]) ()
( )
-1
-2
-3
31.03.2014
1734.06
2368.13
1610.41
115.95
29.05
5857.60
( )
31.03.2014
3342.47
( )
(%)
(%)
31.03.2014
5.29%
3.11%
( )
31.03.2014
3714.49
2832.35
689.24
5857.60
()
() ]
()
()
^)
( )

()
()
() /
()
) ] . 109.79
) ] - 72.13 .
)
()
()
()
()
(.)
64
31.03.2014
1305.31
1489.23
279.41
2515.13
( )
31.03.2014
163.08
119.58
0.00
0.00
282.66

f) Amount of NPAs (Gross):
(` in Cr.)
CATEGORY
AMOUNT
As on 31.03.2014
Sub-Std
1734.06
Doubtful-1
2368.13
Doubtful-2
1610.41
Doubtful-3
115.95
Loss
29.05
Total
5857.60
Net NPAs:
(` in Cr.)
31.03.2014
Net NPAs
3342.47
g) NPA Ratios:
(` in Cr.)
31.03.2014
Gross NPA to Gross Advances (%)
5.29%
Net NPA to Net Advances (%)
3.11%
h) Movement of NPAs (Gross):

(` in Cr.)
31.03.2014
(a) Opening Balance
3714.49
(b) Additions during the year
2832.35
(c) Reductions during the year

(d) Closing Balance
689.24
5857.60
i) Movement of Provision for NPAs:

(` in Cr.)
31.03.2014
Movement of Specific Provisions for NPAs
(a) Opening Balance
1305.31
(b) Provisions made during the year
1489.23
(c) Write-off / Write-back of excess provisions

(d) Closing Balance
279.41
2515.13
j) Amount of Non-Performing Investments :109.79

k) Amount of provisions held for Non-Performing Investments: 72.13
l) Movement of provisions for depreciation on investments:
(` in Cr.)
31.03.2014
(a) Opening Balance
163.08
(b) Provisions made during the period
119.58
(c) Write off
0.00
(d)Write back of excess provisions

(e) Closing Balance
0.00
282.66
65
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]
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i. \ , ] ] , \\ ]
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ii. \ , ] ] ,
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( )
31.03.2014

45081.72
3278.60
33502.44
8620.40
21329.51
4219.60
10735.37
1499.58
110649.04
17618.18
100% ]
100% ]
100% ] ]

- 5 ]

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66
Table DF-4 - Credit Risk: Disclosures for Portfolios Subject to the Standardised Approach
(a) For portfolios under the standardized approach: Name of the Credit Rating agencies used, plus reasons for any
changes
Credit Rating Information Services India Limited (CRISIL)
Credit Analysis and Research Limited (CARE)
India Ratings and Research Private Limited
ICRA Limited
SMERA Ratings Limited
Brick Work Ratings India Private Limited
Types of exposure for which each agency is used:
For exposures with a contractual maturity of less than or equal to one year (except cash credit, overdraft) Short
term rating given by approved Rating Agencies is used.
For domestic cash credit, overdraft and for term loan exposures of over 1 year, Long Term Rating is used.
The Bank uses only publicly available solicited ratings that are valid and reviewed by the recognized ECAIs.
The Bank does not simultaneously use the rating of one ECAI for one exposure and that of another ECAI for
another exposure to the same borrower, unless the respective exposures are rated by only one of the chosen
ECAIs. Further, the bank does not use rating assigned to a particular entity within a corporate group to risk
weight other entities within the same group.
Where exposures/ borrowers have multiple ratings from the chosen ECAIs, the bank has adopted the following
procedure for risk weight calculations:
i. If there are two ratings accorded by chosen ECAIs, which map into different risk weights, the higher risk
weight is applied.
ii. If there are three or more ratings accorded by the chosen ECAIs which map into different risk weights, the
ratings corresponding to the lowest 2 ratings are referred to and higher of those two risk weights is applied.
A description of the process used to transfer public issue ratings onto comparable assets in the banking book:
No such process is applied
Quantitative Disclosures:
(b) For exposure amounts after risk mitigation subject to the standardized approach, amount of banks outstandings (rated
& unrated) in the following major risk buckets as well as those that are deducted:
(` in Cr.)
31.03.2014
Fund Based
Non Fund Based
Below 100% risk weight
45081.72
3278.60
100% risk weight
33502.44
8620.40
More than 100% risk weight
21329.51
4219.60
Deducted (Mitigants)
10735.37
1499.58
110649.04
17618.18
Total
Table DF-5: Credit Risk Mitigation: Disclosures for Standardised Approaches

Qualitative Disclosures
The general qualitative disclosure requirement with respect to credit risk mitigation including:
(a) Policies and processes for and an indication of the extent to which the bank makes use of On and Off-balance
sheet netting
The Bank makes use of on-balance sheet and off-balance sheet netting only in cases where deposits/cash is held against
the particular loan asset.
Policies and processes for collateral valuation and management:
A Board approved Policy on valuation of properties obtained by the Bank, is in place.
As per RBI guidelines, the Bank adopts the comprehensive approach, which allows full offset of collateral (after appropriate
haircuts) against exposures, by effectively reducing the exposure amount by the value ascribed to the collateral.
67
]
] ]
1.
/ ]
2.
3.
] ]
4.
\
5.
]
6.
( ] )
7.
\ .
8.
, ( )
] ] ] .
-
] , ] , ]
] ,
. ]/ . , ]
\ ] .
] (] ) \
\ , ]
\
\ \
)
( )
) ] ].
] :
i)
7837.18
ii) ]
4361.56
iii)
31.27
iv) \ .
4.94
) ]
5592.27
]
NIL
- 6
- 7 ] ]
)

] ] ] ] \ .

] ] \
] ] -[
] ] ] .
] ] .
68
Description of the main types of collateral taken by the Bank:

The main types of collateral commonly used by the Bank as risk mitigants comprise 1.
Cash / Banks deposits
2.
Gold
3.
Securities issued by Central and State Government
4.
NSCs and KVPs
5.
LIC policies with a declared surrender value
6.
Debt securities (as defined in the New Capital Adequacy Framework)
7.
Units of Mutual Funds.
8.
Plant & Machinery, Land & Building (In case of NPAs only)
The Credit Risk Mitigants are applied in accordance with the RBI guidelines.
Main types of Guarantor counterparty and their creditworthiness:
Wherever required, the Bank obtains Personal or Corporate guarantee, as an additional comfort for mitigation of credit risk,
which can be translated into a direct claim on the guarantor, and is unconditional and irrevocable. The Creditworthiness of
the guarantor is normally not linked to or affected by the borrowers financial position. The Bank also accepts guarantee
given by State / Central Government as a security comfort. Such Guarantees remain continually effective until the facility
covered is fully repaid or settled.
Information about risk concentration (market or credit) within the mitigation taken:
Bank has a well dispersed portfolio of assets which are secured by various types of securities, such as:
Eligible financial collaterals listed above
Guarantees by sovereigns and well-rated corporates
Fixed and current assets of the counterparty
(b) Quantitative Disclosures:
(` in Cr.)
Particulars
Amount
a. Total exposure covered by eligible financial collateral after

application of haircuts. Of which :
i) Gold
7837.18
ii) Bank Deposits
4361.56
iii) Insurance Policies
31.27
iv) NSCs / KVPs etc.
4.94
b. Total exposure covered by guarantees

Total exposure covered by credit derivatives
5592.27
NIL
Table DF-6: Securitisation Exposures: Disclosure for Standardised Approach : NIL

Table DF-7: Market Risk in Trading Book
(a) Qualitative Disclosures:
Strategies and processes:
The Bank has in place a well-defined Board approved Market Risk Management Policy and organizational structure for
Market risk management functions. The objectives of the policy areto capture all the market related risks inherent in on and off-balance sheet items, monitor and manage them
in the best interests of the bank.
to ensure that the banks NII is protected from the volatilities in the market related factors
to improve the sophistication levels of the risk management systems pertaining to Market Risk; and
to prepare the bank for adoption of the advanced methods of capital computation to ensure optimum utilization
of the capital sources.
69
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-
] :
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] ] ] , ] , ] ] ] .
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.
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.
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, , . ] ] ] , \, , ]
, ] .
] .
/ ] ] .
] \ \ ]
. \ .
\
1. (\) ()
)
( )
] ] ]
31.03.2014
- \
] ]
364.40
] ( )
1.35
61.75
70
Structure and organisation of the Market risk management function:

Market Risk Management structure of the Bank is as underBoard of Directors
Asset Liability Management Committee (ALCO)
General Manager-Integrated Risk Management Department (Chief Risk Executive)-Head Office
Market Risk Management Cell, Integrated Risk Management Department, Head Office-
Integrated Mid Office
Asset Liability Management Cell
Scope and nature of Market Risk reporting and measurement systems:

Bank has put in place various exposure limits for market risk management such as Overnight limit, Intraday
limit, Aggregate Gap limit, Stop Loss limit, VaR limit, Broker Turnover limit, Capital Market Exposure limit,
Product-wise Exposure limit, Issuer-wise Exposure limit etc.
A risk reporting system is in place for monitoring the risk limits across different levels of the bank from trading
desk to the Board level.
The rates used for marking to market for risk management or accounting purposes are independently verified.
The reports are used to monitor performance and risk, manage business activities in accordance with banks
strategy.
The reporting system ensures timelines, reasonable accuracy with automation. The reports are flexible and
enhance decision-making process.
The Dealing room activities are centralized
The reporting formats & the frequency is periodically reviewed so as to ensure that they suffice the risk
monitoring, measuring and mitigation requirements of the Bank.
Various Board approved policies viz., Market Risk Management Policy, Country Risk Management Policy, Counterparty
Bank Risk Management Policy, Investment Policy, Forex Policy and ALM policy are put in place for market risk management.
Market risk management policy provides the framework for risk assessment, identification, measurement & mitigation, risk
limits & triggers, risk monitoring and reporting.
Bank has in place a scoring model for categorization of International banks under Counterparty Bank Risk Management
Policy. The various exposure limits are set based on the points secured by the counterparties as per the scoring matrix.
Liquidity risk management policy lays down various guidelines to ensure that the liquidity position is comfortable during
times of stress, by formulating a Contingency Funding Plan. Tolerance levels are incorporated under each time frame and
any breach of the same would signal a forthcoming liquidity constraint.
Policies covered by the Standardized Duration Approach:
1. Securities held under Held for Trading (HFT) and Available for Sale (AFS) categories
b). Quantitative Disclosures:
(` in Cr.)
Capital requirements for market risk
AS ON 31.03.2014
- Standardized duration approach

Interest rate risk
364.40
Foreign exchange risk (including gold)
1.35
Equity position risk
61.75
71
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72
Table DF-8: Operational Risk

Strategies and processes:
The Operational Risk Management process of the Bank is driven by a strong organizational culture and sound operating
procedures, involving corporate values, attitudes, competencies, internal control culture, effective internal
reporting and contingency planning. Policies are put in place for effective management of Operational Risk in
the Bank. The main objectives of the policy are
To have common understanding of Operational Risk and facilitate its management.
Put in place a suitable Organizational Structure.
Identification of the Operational Risks faced by the bank in each of the products / activities / processes.
Developing sound Operational Risk Management systems consistent with the guidelines issued by Reserve
Bank of India for management / mitigation of operational risks faced by the bank.
Suggesting measures for strengthening of internal control systems & procedures based on the deficiencies
observed.
Structure and Organization of the Operational risk management function:
The Operational Risk Management Structure in the Bank is as under:
Board of Directors
Operational Risk Management Committee (ORMC)
General Manager of Integrated Risk Management Department, (Chief Risk Executive) - Head Office
Operational Risk Management Cell (IRMD),Head Office
Scope and nature of Operational risk reporting and measurement systems:
The Risk reporting consists of operational risk loss incidents / events occurred in branches / offices relating to people,
process, technology and external events. The data collected from different sources are used for preparation of MIS on loss
event types.
Bank has put in place an Operational Risk Management Policy covering the terms of operational risk, risk management
structure, identification, assessment, measurement and monitoring of operational risk.
Operational risk capital assessment:
The Bank has adopted Basic Indicator Approach for calculating capital charge for Operational Risk, as stipulated by the
Reserve Bank of India.
Table DF-9: Interest Rate Risk in the Banking Book (IRRBB)
(a) Qualitative Disclosures:
With the deregulation of interest rates, liberalization of exchange rate system, development of secondary markets for bonds
and deepening and widening of financial system, Banks are exposed to interest rates risk, liquidity risk, exchange rate
risk etc.; Asset Liability Management outlines a comprehensive and dynamic framework for measuring, monitoring and
managing various risks. Primary objective of ALM is to maximize the Net Interest Income within the overall risk bearing
capacity of the Bank.
Various stress tests are conducted by varying the liquidity and interest rate structure to estimate the resilience and/or the
impact. It evaluates the Earnings at Risk by means of parallel shift in the interest rates across assets and liabilities as also
basis risk.
The stress tests are carried out by assuming stress conditions wherein embedded options are exercised like prepayment
of loans and premature closure of deposits much above the revelations of the behavioral studies to test the stress levels.
Traditional Gap Analysis method suggested by RBI is followed for calculation of IRR from Earnings perspective.
Modified Duration Gap method is followed, as per RBI guidelines, to assess the effect of interest rate changes on the Market
Value of Equity in percentage terms.
The ALCO decides on the fixation of interest rates on both assets and liabilities after considering the macro economic
outlook both global and domestic, as also the micro aspects like cost-benefit, spin offs, financial inclusion and a host of
other factors.
73

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1
0.25%
12.47
0.50%
24.94
0.75%
37.41
1.00%
49.88

200 ( )
.1378.60
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74
Strategies and process:

The strategy adopted for mitigating the risk is conducting stress tests before hand by simulating various scenarios so as
to be in preparedness for the plausible event and if possible in mitigating it. The process for mitigating the risk is initiated
by altering the mix of asset and liability composition, bringing the duration gap closer to zero, change in interest rates, etc.
Structure and organization of the Interest Rate Risk management functions:
The ALM cell reports to the General Manager- Integrated Risk Management Department and the ALM reports on various
subjects/ topics along with the structural liquidity, the interest rate sensitivity and short term dynamic liquidity statements are
presented to the ALCO on a fortnightly basis, and to the Risk Management Committee of the Board on a monthly basis. The
ALCO is chaired by the Chairman & Managing Director of the Bank and has the Executive Directors and GMs of functional
Departments as its members.
Scope and nature of risk reporting and measurement systems:
The liquidity and interest rate sensitivity statements reveal the liquidity position and the Interest rate risk of the Bank. With
the approval by the Board, tolerance level is stipulated, within which the Bank is to operate. Any breach in the limits is
reported to the ALCO which in turn directs remedial measures to be initiated.
of hedges/ mitigates:
Mitigating measures are initiated in the ALCO on how to contain the liquidity risk and interest rate risk. The fortnightly
statements presented to the ALCO reveal the liquidity and interest rate structure based on residual maturity. The gap
position under various time buckets denotes the liquidity risk and interest rate risk. The ALCO on studying the gap position
in detail evolves the strategies to reduce the mismatches in order to minimise the liquidity and interest rate risks.
(b) Quantitative Disclosures:
EARNINGS AT RISK
(` in cr.)
Change in interest rate
Re-pricing up to 1 year
0.25%
12.47
0.50%
24.94
0.75%
37.41
1.00%
49.88
ECONOMIC VALUE OF EQUITY

For a 200 bps rate shock the drop in equity value (including reserves)
`1378.60 crore
Table DF-10: General Disclosure for Exposures Related to Counterparty Credit Risk
(a) The general qualitative disclosure requirement
with respect to derivatives and CCR, including:
Discussion of methodology used to assign economic
capital and credit limits for counterparty credit exposures;
Counterparty Credit Risk (CCR) Limits for the

banking counterparties are assessed based on
Discussion of policies for securing collateral and

establishing credit reserves;
an internal model that considers the parameters

viz. net worth of the counterparties, asset quality,
Discussion of policies with respect to wrong-way

risk exposures;
liquidity, credit rating net worth of the Bank and

business requirements.
Discussion of the impact of the amount of collateral

the bank would have to provide give a credit rating
downgrade.
CCR limits are set on the amount and tenor while

fixing the limits to respective counterparties.
Capital for CCR exposure is assessed based on
Standardised Approach.
Quantitative Disclosures
The Bank does not have any credit derivatives

exposure at present.
75
-11: ] \
( )
-11 : ] \
I ]:
] ( )
]
\ ( )
1 ] ( -]
)
] ] ] 1 ] 2018

5 ]
( 1 )
6 ] I ]
I ]: ]
7 ]
8 ( )
9 \ ( )
10
11 \
12
13
14 \ ]
15
16 ( - ]
)
17 -
18 ,
] , , ]
] 10% (10% )
19 ,
, , ]
] 10% (10% )
20 (10% )
21 (10%
, )
22 15%
23 ]
24 ] :
25 ] :
26 ] (26+26=26+26)
26 ] : ]
26 ] : - ]
26 ] : ] , ]

1
2
3
4
76
- lll .

25,380.00
516.97
61,969.58
a+b
c-d
e+f+g+h
87,866.55
11.60
128.01
96.80
40.00

836.15
-
17.40
192.01
0
145.20
60.00
40% OF V
40% OF T
Table DF-11: Composition of Capital

(` in Million)
DF-11 : COMPOSITION OF CAPITAL
Amounts subject to
Pre-Basel lll
Treatment
Common Equity Tier 1 capital: instruments and reserves

Directly issued qualifying common share capital plus related stock surplus
(share premium)
2
Retained earnings
3
Accumulated other comprehensive income (and other reserves)
4
Directly issued capital subject to phase out from CET1 (only applicable to
non-joint stock companies1)
Public sector capital injections grandfathered until 1 January 2018
5
Common share capital issued by subsidiaries and held by third parties
(amount allowed in group CET1)
6
Common Equity Tier 1 capital before regulatory adjustments
Common Equity Tier 1 capital: regulatory adjustments
7
Prudential valuation adjustments
8
Goodwill (net of related tax liability)
9
Intangibles other than mortgage-servicing rights (net of related tax liability)
10 Deferred tax assets
11 Cash-flow hedge reserve
12 Shortfall of provisions to expected losses
13 Securitisation gain on sale
14 Gains and losses due to changes in own credit risk on fair valued liabilities
15 Defined-benefit pension fund net assets
16 Investments in own shares (if not already netted off paid-in capital on
reported balance sheet)
17 Reciprocal cross-holdings in common equity
18 Investments in the capital of banking, financial and insurance entities that
are outside the scope of regulatory consolidation, net of eligible short
positions, where the bank does not own more than 10% of the issued share
capital (amount above 10% threshold)
19 Significant investments in the common stock of banking, financial and
insurance entities that are outside the scope of regulatory consolidation, net
of eligible short positions (amount above 10% threshold)
20 Mortgage servicing rights (amount above 10% threshold)
21 Deferred tax assets arising from temporary differences (amount above
10% threshold, net of related tax liability)
22 Amount exceeding the 15% threshold
23 of which: significant investments in the common stock of financial entities
24 of which: mortgage servicing rights
25 of which: deferred tax assets arising from temporary differences
26 National specific regulatory adjustments(26a+26b=26c+26d)
26a of which: Investments in the equity capital of the unconsolidated insurance
subsidiaries
26b of which: Investments in the equity capital of unconsolidated non-financial
subsidiaries
26c of which: Shortfall in the equity capital of majority owned financial entities
which have not been consolidated with the bank
1
77
25,380.00
516.97
61,969.58
Ref No
a+b
c-d
e+f+g+h
87,866.55
11.60
128.01
96.80
40.00
NA
NA
NA
NA
NA
NA
836.15
-
17.40
192.01
0
145.20
60.00
40% of v
40% of t
u net of DTL
Part of s
Part of p
26 ] :
III 1
]
] : '] ]'
] : '] ]'
] : '] ]'
27 1 2
1 ]
28 1 ]
29 1 ] ( 1)
1 ]
30 1 (31+32)
31 ] :
( \ )
32 ] :
( )
33 ] 1
34 1 ( 5 1 )
( 1 )
35 ] :
36 ] 1 ]
1 ] ]
37 1
38 1
39 , ]
, , ]
] 10% (10% )
40 ,
( )
41 ] (41+41
41 1 ]
41 1 ] ,
]
III 1
]
] : '] ]'
] : '] ]' - 1 50%
]
] : '] ]' -
42 2 1
]
43 1 ] ]
44 1 ] (1)
44 ] 1 ]
45 1 ] (1 = 1 + 1) (29 + 44)
78
836.15
-
1,112.56
86,753.99
-
414.61
-
1,600.00
1,600.00
-
209.41
-
(+) 60%
209.41
209.41
209.41
1,390.59
1,390.59
88,144.58
(+) 60%
(+) 60%
26d of which: Unamortised pension funds expenditures
27
836.15
Regulatory Adjustments Applied to Common Equity Tier 1 in respect

of Amounts Subject to Pre-Basel III Treatment
of which: [INSERT TYPE OF ADJUSTMENT]
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient

Additional Tier 1 and Tier 2 to cover deductions
28
Total regulatory adjustments to Common equity Tier 1
1,112.56
414.61
29
Common Equity Tier 1 capital (CET1)
86,753.99
Additional Tier 1 capital: instruments
30
Directly issued qualifying Additional Tier 1 instruments plus related stock

surplus (31+32)
31
of which: classified as equity under applicable accounting standards

(Perpetual Non-Cumulative Preference Shares)
32
of which: classified as liabilities under applicable accounting standards

(Perpetual debt Instruments)
33
Directly issued capital instruments subject to phase out from Additional Tier 1
1,600.00
34
Additional Tier 1 instruments (and CET1 instruments not included in row 5)

issued by subsidiaries and held by third parties (amount allowed in group AT1)
35
of which: instruments issued by subsidiaries subject to phase out
36
Additional Tier 1 capital before regulatory adjustments
1,600.00
Additional Tier 1 capital: regulatory adjustments

37
Investments in own Additional Tier 1 instruments
38
Reciprocal cross-holdings in Additional Tier 1 instruments
39
Investments in the capital of banking, financial and insurance entities that

positions, where the bank does not own more than 10% of the issued
common share capital of the entity (amount above 10% threshold)
40
Significant investments in the capital of banking, financial and insurance

entities that are outside the scope of regulatory consolidation (net of eligible
short positions)
41
National specific regulatory adjustments (41a+41b)
209.41
41a Investments in the Additional Tier 1 capital of unconsolidated insurance

subsidiaries
41b Shortfall in the Additional Tier 1 capital of majority owned financial entities
Regulatory Adjustments Applied to Additional Tier 1 in respect of Amounts

Subject to Pre-Basel III Treatment
209.41
of which: [INSERT TYPE OF ADJUSTMENT e.g. DTAs]
of which: [INSERT TYPE OF ADJUSTMENT]- Goodwill and Intangible assets

Regulatory adjustments applied to Additional Tier 1 due to insufficient
Tier 2 to cover deductions
43
Total regulatory adjustments to Additional Tier 1 capital
44
Additional Tier 1 capital (AT1)
209.41
209.41
1,390.59
44a Additional Tier 1 capital reckoned for capital adequacy

45
60% of (t+v)
of which: [INSERT TYPE OF ADJUSTMENT e.g. existing adjustments

which are deducted from Tier 1 at 50%]
42
60% of (t+v)
1,390.59
Tier 1 capital (T1 = CET1 + AT1) (29 + 44a)
88,144.58
79
60% of (t+v)
3 ]
46 2
47 2 ]
21,280.00
48 2 ( 1 1 ] 5 34
) ] ( 2
)
49 ] : ]
50
8,110.05
51 ] 2 ]
l+m+(i*45%)
29,390.05
2 ]: ]
52 2
53 2 -
179.39
54 , ]
, , ] ]
10% (10% )
55 ,
( )
56 ] (56+56)
269.08
56 ] : 2 ]
56 ] : 2 ]
, ]
III 2
]
] : '] ]' - 2 50%
]
] : '] ]'
57 2 ] ]
179.39
58 2 ] (2)
29,210.66
58 ] 2 ]
29,210.66
58 ] 1 ]
58 ] 2 ] (58 + 58)
29,210.66
59 ] ( = 1 + 2) (45 + 58)
117,355.24
60 ] (60 + 60 + 60)
1,080,833.49
60 ] : ]
957,880.27
60 ] : ] ]
48,084.32
60 ] : \ ]
74,868.90
]
61 1 (] )
8.03%
62 1 (] )
8.16%
63 ] (] )
10.86%
80
269.08
Part of q
Tier 2 capital: instruments and provisions

46
Directly issued qualifying Tier 2 instruments plus related stock surplus
47
Directly issued capital instruments subject to phase out from Tier 2
48
Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5
or 34) issued by subsidiaries and held by third parties (amount allowed in
group Tier 2)
49
of which: instruments issued by subsidiaries subject to phase out
50
Provisions
51
Tier 2 capital before regulatory adjustments
21,280.00
8,110.05
l+m+(i*45%)
29,390.05
Tier 2 capital: regulatory adjustments

52
Investments in own Tier 2 instruments
53
Reciprocal cross-holdings in Tier 2 instruments
54
Investments in the capital of banking, financial and insurance entities that

positions, where the bank does not own more than 10% of the issued
common share capital of the entity (amount above the 10% threshold)
Significant investmentsin the capital banking, financial and insurance

entities that are outside the scope of regulatory consolidation (net of
eligible short positions)
National specific regulatory adjustments (56a+56b)
55
56
179.39
269.08
56a of which: Investments in the Tier 2 capital of unconsolidated subsidiaries

56b of which: Shortfall in the Tier 2 capital of majority owned financial entities
Regulatory Adjustments Applied To Tier 2 in respect of Amounts Subject
to Pre-Basel III Treatment
of which: [INSERT TYPE OF ADJUSTMENT e.g. existing adjustments
which are deducted from Tier 2 at 50%]
of which: [INSERT TYPE OF ADJUSTMENT
57
Total regulatory adjustments to Tier 2 capital
58
Tier 2 capital (T2)
179.39
29,210.66
58a Tier 2 capital reckoned for capital adequacy
29,210.66
58b Excess Additional Tier 1 capital reckoned as Tier 2 capital
58c Total Tier 2 capital admissible for capital adequacy (58a + 58b)
59
Total capital (TC = T1 + T2) (45 + 58c)
60
Total risk weighted assets (60a + 60b + 60c)
29,210.66
117,355.24
1,080,833.49
60a of which: total credit risk weighted assets
957,880.27
60b of which: total market risk weighted assets
48,084.32
60c of which: total operational risk weighted assets
74,868.90
Capital ratios
61
Common Equity Tier 1 (as a percentage of risk weighted assets)
8.03%
62
Tier 1 (as a percentage of risk weighted assets)
8.16%
63
Total capital (as a percentage of risk weighted assets)
10.86%
81
269.08
Part of q
64 ( 1 ]
\ ,] )
65 ] : ]
66 ] \
67 ] : ]-
68 1 (]
)
( III )
69 1 ( III )
70 1 ( III )
71 ] ( III )
(] )
72 ] -
73
74 ( )
75 ( )
2
76 \ 2
( )
77 \ 2
78 \ 2
( )
79 \ 2
5.00%
0
0
0
3.03%
5.00%
6.50%
9.00%
3,436.91
1425.00

Part of p & q
Part of r
8056.42
11973.50

( )
\
0
10
(\ )
0
10
0
] 10% \
] , ]
0
19
] : 1 ]
0
] : 1 ]
0
] : 2 ]
0
- ] ]

0
26 (i) 1 ]
0
(ii)]
0
1 ] ] ] ] ( 44
1 ] 44 1 ] )
0
44a
] 1 ] ] 58 2 ] \
0
2 ]
8056.42
2 ]
53.63
50
50
8110.05
] 2 ] ( 58 2
] 58 2 )
0
82
64
Institution specific buffer requirement (minimum CET1 requirement plus

capital conservation and countercyclical buffer requirements, expressed
as a percentage of risk weighted assets)
65
of which: capital conservation buffer requirement
5.00%
0
66
of which: bank specific countercyclical buffer requirement
67
of which: G-SIB buffer requirement
68
Common Equity Tier 1 available to meet buffers (as a percentage of risk

weighted assets)
69
National Common Equity Tier 1 minimum ratio (if different from

Basel III minimum)
5.00%
70
National Tier 1 minimum ratio (if different from Basel III minimum)
6.50%
71
National total capital minimum ratio (if different from Basel III minimum)
9.00%
3.03%
National minima (if different from Basel III)
Amounts below the thresholds for deduction (before risk weighting)

72
Non-significant investments in the capital of other financial entities
3,436.91
Part of p & q
73
Significant investments in the common stock of financial entities
1425.00
Part of r
74
Mortgage servicing rights (net of related tax liability)
NA
75
Deferred tax assets arising from temporary differences (net of related tax liability)
NA
Applicable caps on the inclusion of provisions in Tier 2

76
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to

standardised approach (prior to application of cap)
77
Cap on inclusion of provisions in Tier 2 under standardised approach
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to

internal ratings-based approach (prior to application of cap)
NA
79
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
NA
8056.42
11973.50
Notes to the Template

Row No. of
the template Particular
10
19
26b
44a
(` in million)
Deferred tax assets associated with accumulated losses
Deferred tax assets (excluding those associated with accumulated losses) net of Deferred tax liability
Total as indicated in row 10
If investments in insurance subsidiaries are not deducted fully from capital and instead considered under
10% threshold for deduction, the resultant increase in the capital of bank
of which: Increase in Common Equity Tier 1 capital
of which: Increase in Additional Tier 1 capital
of which: Increase in Tier 2 capital
If investments in the equity capital of unconsolidated non-financial subsidiaries are not deducted and
hence, risk weighted then:
(i) Increase in Common Equity Tier 1 capital
(ii) Increase in risk weighted assets
Excess Additional Tier 1 capital not reckoned for capital adequacy (difference between Additional Tier 1
capital as reported in row 44 and admissible Additional Tier 1 capital as reported in 44a)
of which: Excess Additional Tier 1 capital which is considered as Tier 2 capital under row 58b
Eligible Provisions included in Tier 2 capital
Eligible Revaluation Reserves included in Tier 2 capital
50
0
8056.42
53.63
Total of row 50
8110.05
Excess Tier 2 capital not reckoned for capital adequacy (difference between Tier 2 capital as reported
in row 58 and T2 as reported in 58a)
83
-12 :] \-
( )
-12 :] \-
\-1
]
i
]

]
ii
]
] : ]
] : ]
] : ] (] )
iii
] : {
]
] ]
] ( )-
] ]
iv

i
{
\
ii
]
]
]
] \
] / /
] (] , \ )
iii

]
]
iv
\
v

]
]
vi

vii

84

31-03-2014

-
31-03-2014
5,896.15
81,716.31
87,612.46
1,418,803.30
301.53
1,222,288.91
196,212.86
131,929.91
63,960.00
17,099.23
20,670.68
30,200.00
55,650.02
1,693,995.69
5,896.15
82,089.58
87,985.73
1,418,933.30
301.53
1,222,418.91
196,212.86
131,929.91
63,960.00
17,099.23
20,670.68
30,200.00
36,116.50
1,674,965.44
79,122.97
20,086.23
467,709.85
404,273.76
1,511.06
7,340.19
33,722.75
512.78
20,349.31
1,076,649.05
1,076,649.05
4,469.01
45,929.58
1,266.70
29.00
1,693,995.69
79,122.70
17,257.48
452,721.49
399,371.62
2,937.41
32,451.95
1,937.78
16,022.73
1,076,634.38
1,076,634.38
4,427.64
44,772.75
1,266.70
29.00
1,674,965.44
Table DF-12 : Composition of Capital - Reconciliation Requirements

(` in million)
DF-12- Composition of CapitalReconciliation Requirements
Step-1
A
i
Paid-up Capital
Minority Interest
1,418,803.30
1,418,933.30
301.53
301.53
1,222,288.91
1,222,418.91
of which: Other deposits (Certificate of Deposit)
196,212.86
196,212.86
Borrowings
131,929.91
131,929.91
63,960.00
63,960.00
Deposits
of which: From banks
of which: From other institutions & agencies
17,099.23
17,099.23
of which: Others (pl specify)- Outside India Line of Credit
20,670.68
20,670.68
of which: Capital instruments
30,200.00
30,200.00
Other liabilities & provisions
55,650.02
36,116.50
1,693,995.69
1,674,965.44
Cash and balances with Reserve Bank of India
79,122.97
79,122.70
Balance with banks and money at call and short notice
20,086.23
17,257.48
Investments:
467,709.85
452,721.49
of which: Government securities
404,273.76
399,371.62
Total
ii
Assets
of which: Other approved securities
1,511.06
of which: Shares
7,340.19
2,937.41
33,722.75
32,451.95
of which: Debentures & Bonds

of which: Subsidiaries / Joint Ventures / Associates
of which: Others (Commercial Papers, Mutual Funds etc.)
iii
5,896.15
82,089.58
-
of which: From RBI
5,896.15
81,716.31
87,985.73
of which: Customer deposits
As on 31-03-2014
of which: Deposits from banks
iv
As on 31-03-2014
87,612.46
Total Capital
iii
Balance sheet
under regulatory scope of
consolidation
Capital & Liabilities

Reserves & Surplus
ii
Balance sheet as in
financial statements
Loans and advances

of which: Loans and advances to banks
of which: Loans and advances to customers
512.78
1,937.78
20,349.31
16,022.73
1,076,649.05
1,076,634.38
1,076,649.05
1,076,634.38
iv
Fixed assets
4,469.01
4,427.64
Other assets
45,929.58
44,772.75
1,266.70
1,266.70
29.00
29.00
1,693,995.69
1,674,965.44
of which: Goodwill and intangible assets

of which: Deferred tax assets
vi
Goodwill on consolidation
vii
Debit balance in Profit & Loss account

Total Assets
85
-12 :] \-
\-2 31-03-2014
A
]
i
]
] : 1
] : 1

]

/
]
() ] \

]
36(1)(viii)

]
] ] \ ]
]
ii
]
] : ]
] : ]
] : ] ( ) - ]
iii
] :
] :
] : ]
] : ( ) -
] : ]
] :
( ) 1 ]
() ] 2 ]
] 2 ]
iv

] :

Il

86

31-03-2014
5,896.15
5,896.15
81,716.31
5,896.15
5,896.15
82,089.58
19,873.85
(246.31)
19,483.85
516.97
24,669.76
23,921.15
3,678.67
9,700.00
119.18
87,612.46
1,418,803.30
301.53
1,222,288.91
196,212.86
131,929.91
63,960.00
17,099.23
20,670.68
30,200.00
24,669.76
23,921.15
3,678.67
9,700.00
119.18
87,985.73
1,418,933.30
301.53
1,222,418.91
196,212.86
131,929.91
63,960.00
17,099.23
20,670.68
30,200.00
1,600.00
21,280.00
55,650.02
1,600.00
21,280.00
36,116.50
7,805.00
251.42
430.50
1,693,995.69
7,805.00
251.42
430.50
1,674,965.44
b
c
]
\
j
k
DF-12- Composition of CapitalReconciliation Requirements
Balance sheet as in
financial statements
Balance sheet
under regulatory scope of
consolidation
As on 31-03-2014
As on 31-03-2014
Step-2
Ref No.
Capital & Liabilities
Paid-up Capital
5,896.15
5,896.15
of which: Amount eligible for CET1
5,896.15
5,896.15
81,716.31
82,089.58
19,873.85
19,483.85
(246.31)
516.97
Statutory Reserves
24,669.76
24,669.76
General Reserve
Capital Reserve
23,921.15
3,678.67
23,921.15
3,678.67
f
g
9,700.00
9,700.00
119.18
119.18
of which: Amount eligible for AT1

Reserves & Surplus
of which:
Share premium
Balance in Profit/Loss A/c
of which:
(a) Current period profits not reconed for capital
adequacy purpose
Special Reserve u/s 36(1)(viii) of IT Act

Foreign Currency Translation Reserve
Minority Interest
Of which considered under capital funds
Total Capital
ii
Deposits
of which: Deposits from banks
of which: Customer deposits
iii
87,612.46
87,985.73
1,418,803.30
1,418,933.30
301.53
301.53
1,222,288.91
1,222,418.91
of which: Other deposits (pl. specify)- Certificate of Deposit
196,212.86
196,212.86
Borrowings
131,929.91
131,929.91
63,960.00
63,960.00
of which: From other institutions & agencies
17,099.23
17,099.23
of which: Others (pl specify)- Outside India Line of Credit
20,670.68
20,670.68
of which: Capital instruments
30,200.00
30,200.00
1,600.00
1,600.00
21,280.00
21,280.00
55,650.02
36,116.50
7,805.00
7,805.00
251.42
251.42
of which: From RBI

of which: From banks
of which:
(a) Eligible AT1 capital
(b) Eligible T2 capital issued by Bank
Eligible T2 capital issued by subsidiaries
iv
Other liabilities & provisions

of which:
Provision against standard assets
Provision for ARCIl
DTLs related to goodwill
DTLs related to intangible assets
Total
87
430.50
430.50
1,693,995.69
1,674,965.44

i
ii
iii
iv
{
\
] :
] :
] :
] : \
] : / /
] : ( , \ )

] :
] :
\
] :
79,122.97
20,086.23
467,709.85
404,273.76
1,511.06
7,340.19
33,722.75
512.78
20,349.31
1,076,649.05
1,076,649.05
4,469.01
- ( )

] : \
] :
] :
( )

vi
vii
79,122.70
17,257.48
452,721.49
399,371.62
2,937.41
32,451.95
1,937.78
16,022.73
1,076,634.38
1,076,634.38
4,427.64
326.17
45,929.58
1,266.70
320.02
44,772.75
1,266.70
29.00
1,693,995.69
29.00
1,674,965.44
n
o
p
q
r
s
\ 3
1
2
3
4
5
6
7
8
III (] )
1 ] :

\ 2
]
/

] ] ( ]
25380.00
+
)

516.97
-
\ ( )
61969.58
+ +]+\
] ] 1 ]
0
( ] )
] ]
0
( 1 )
] 1 ]
87866.55
]
0
( )
11.6
40%
88
Assets
Cash and balances with Reserve Bank of India
79,122.97
79,122.70
Balance with banks and money at call and short notice
20,086.23
17,257.48
ii
Investments
467,709.85
452,721.49
of which: Government securities
404,273.76
399,371.62
of which: Other approved securities
1,511.06
of which: Shares
7,340.19
2,937.41
33,722.75
32,451.95
512.78
1,937.78
20,349.31
16,022.73
1,076,649.05
1,076,634.38
of which: Debentures & Bonds

of which: Subsidiaries / Joint Ventures / Associates
of which: Others (Commercial Papers, Mutual Funds etc.)
iii
Loans and advances

of which: Loans and advances to banks
of which: Loans and advances to customers
iv
Fixed assets
1,076,649.05
1,076,634.38
4,469.01
4,427.64
326.17
320.02
45,929.58
44,772.75
1,266.70
1,266.70
of which:
Intangibles other than mortgage - servicing rights
(net of related tax liability)
v
Other assets
of which: Un amortized pension and gratuity
t
u
of which: Goodwill and intangible assets

Out of which:
Goodwill
Other intangibles (excluding MSRs)
Deferred tax assets

vi
Goodwill on consolidation
vii
Debit balance in Profit & Loss account

Total Assets
29.00
29.00
1,693,995.69
1,674,965.44
STEP 3
Extract of Basel III common disclosure template (with added column)
Common Equity Tier 1 capital: instruments and reserves
Component of
regulatory capital
reported by bank
1 Directly issued qualifying common share (and equivalent for non-joint stock
Source based on reference

numbers/letters of the balance sheet
under the regulatory scope
of consolidation from step 2
25380.00
a+b
516.97
c-d
companies) capital plus related stock surplus

2 Retained earnings
3 Accumulated other comprehensive income (and other reserves)
61969.58
4 Directly issued capital subject to phase out from CET1
e+f+g+h
(only applicable to non-joint stock companies)

5 Common share capital issued by subsidiaries and held by third parties
(amount allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments
0
87866.55
7 Prudential valuation adjustments
8 Goodwill (net of related tax liability)
11.6
89
40% of v
- 13: ]
1
2
4
5
6
7
8
10
11
12
13
14
15
16
17
18
19
20
]
\
(

,

\ )

III

III
/ /

]
\ (
,
)

( /

]
( )
]

]
]

,

,

/
\
/

\

/

V
VI
VII
VIII
I I II III
I II II II I
II
II
II

434
01013

434
09073

434
09081

434
09131

434
09099

434
09107

434
09115

I II
II
II
II
II
II II
434
09065

434
09123

5896.15
2000.00
7000.00
6000.00
3200.00
2000.00
2000.00
5200.00
2800.00
.10/-
. 10,00,000/- . 10,00,000/- . 10,00,000/- . 10,00,000/- . 10,00,000/-
. 10,00,000/-
. 10,00,000/- . 10,00,000/-
05.01.2005
11.01.2008
10.09.2008
24.12.2009
31.12.2008
25.03.2009
08.06.2009
18.12.2009
Dated
Dated
Dated
Dated
Dated
Dated
Dated
05.04.2014
11.05.2018
10.09.2018
24.12.2019
31.12.2018**
25.03.2024***
08.06.2024***
18.12.2024***
Coupon
7.25%
9.15% 11.00% 8.55%
9.50%
9.30%
8.72%
8.70%
90
Table DF-13: Main features of Regulatory Capital Instruments

Particular
1 Issuer
2 Unique identifier
(e.g. CUSIP, ISIN
or Bloomberg
identifier for
private placement)
V Issue
VI Issue
VII Issue
VIII Issue
IPD I Issue
Upper I Issue
Upper II Issue
Equity shares
Lower Tier II
Lower Tier II
Lower Tier II
Lower Tier II
Tier I
Tier II
Tier II
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Upper III Issue

Tier II
Andhra Bank
INE434A01013
INE434A09065 INE434A09073 INE434A09081 INE434A09131
INE434A09099
INE434A09107
INE434A09115 INE434A09123
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
Applicable
Indian statutes
and regulatory
requirements
4 Transitional
Basel III rules
Equity Tier I
Tier II
Tier II
Tier II
Tier II
Tier I
Upper Tier II
Upper Tier II
Upper Tier II
5 Post-transitional
Basel III rules
Equity Tier I
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
6 Eligible at solo/
group/ group & solo
Solo & Group
Solo & Group
Solo & Group
Solo & Group
Solo & Group
Solo & Group
Solo & Group
Solo & Group
Solo & Group
7 Instrument type
Equity shares
Debt Bonds
Debt Bonds
Debt Bonds
Debt Bonds
Debt Bonds
Debt Bonds
Debt Bonds
Debt Bonds
8 Amount recognised
in regulatory capital
(Rs. in million, as
of most recent
reporting date)
5896.15
2000.00
7000.00
6000.00
3200.00
2000.00
2000.00
5200.00
2800.00
9 Par value of
instrument (Face
value of each
share / bond)
Rs.10/-
Rs.10,00,000/- Rs.10,00,000/-
Rs.10,00,000/-
Rs.10,00,000/-
Rs.10,00,000/-
Rs.10,00,000/-
Rs.10,00,000/- Rs.10,00,000/-
10 Accounting
classification
Shareholders'
equity
Liability
Liability
Liability
Liability
Liability
Liability
Liability
Liability
11 Original date of
issuance (Date
of allotment)
various dates*
05.01.2005
11.01.2008
10.09.2008
24.12.2009
31.12.2008
25.03.2009
08.06.2009
18.12.2009
12 Perpetual or dated
Perpetual
Dated
Dated
Dated
Dated
Perpetual
Dated
Dated
Dated
13 Original
maturity date
No maturity
05.04.2014
11.05.2018
10.09.2018
24.12.2019
31.12.2018**
25.03.2024***
08.06.2024***
18.12.2024***
14 Issuer call subject

to prior supervisory
approval
NO
NO
NO
NO
NO
YES
YES
YES
YES
15 Optional call date,

contingent call
dates and
redemption amount
Not applicable
Not applicable Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
16 Subsequent call
dates, if applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
3 Governing law(s)
of the instrument
Regulatory
treatment
Dividend
Coupon
Coupon
Coupon
Coupon
Coupon
Coupon
Coupon
Coupon
17 Fixed or floating
dividend/coupon
Coupons / dividends
Not applicable
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
18 Coupon rate and

any related index
Not applicable
7.25%p.a.
9.15% p.a.
11.00% p.a.
8.55% p.a.
9.50% p.a.
9.30% p.a.
8.72% p.a.
8.70% p.a.
19 Existence of a
dividend stopper
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
20 Fully discretionary,
partially
discretionary
or mandatory
Fully
discretionay
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
91
21
NO
NO
NO
NO
NO
-
-
-
-

\
\
\
\
\
\
\
\
\
22 -\
\

23
24

,

25
,

26
,
27

,

28
,]

29
]
]

30 -
NO
NO
NO
NO
NO
NO
NO
NO
NO
31 -

,
32 -

,

33 -
,

34 -
, -
]
35

(
]
]
]
]
] ]
]
]

-II
)

NO
NO
NO
NO
NO
NO
NO
NO
NO
36 -

37 ,

(*) : 24.03.2001; - 03.02.2006; 25.03.2011;
21.12.2013;
(**) - { 10 ]
] , 10 0.50 - ] 31.12.2018 10.00 % .
(***) -II -- { 10 ] ]
, 10 0.50 - ]
-II (I ) .. 25.03.2019 25.03.2024 - 9.80%
-II (II ) .. 08.06.2019 08.06.2024 - 9.22%
-II (III ) .. 18.12.2019 18.12.2024 - 9.20%
92
21 Existence of step
up or other
incentive to redeem
NO
NO
NO
NO
NO
Step-up
Step-up
Step-up
Step-up
22 Non-cumulative
or cumulative
Noncumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
23 Convertible or
non-convertible
Not
applicable
NonConvertible
NonConvertible
NonConvertible
NonConvertible
NonConvertible
NonConvertible
NonConvertible
NonConvertible
24 If convertible,
conversion
trigger(s)
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
25 If convertible,
fully or partially
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
26 If convertible,
conversion rate
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
27 If convertible,
mandatory or
optional
conversion
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
28 If convertible,
specify instrument
type convertible into
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
29 If convertible,
specify issuer of
instrument it
converts into
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
NO
30 Write-down feature
NO
NO
NO
NO
NO
NO
31 If write-down,
write-down trigger(s)
Not applicable
NO
NO
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
32 If write-down,
full or partial
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
33 If write-down,
permanent or
temporary
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
34 If temporary
write-down,
description of
write-up mechanism
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
35 Position in
subordination
hierarchy in
liquidation (specify
instrument type
immediately
senior to instrument)
Not applicable
All other
creditors and
Depositors of
the Bank
All othe
creditors and
Depositors of
the Bank
All othe
creditors and
Depositors of
the Bank
All othe
creditors and
Depositors of
the Bank
All other
creditors and
Depositors of
the Bank & All
Investors in
Tier-II Bonds
All other
creditors and
Depositors of
the Bank
All other
creditors and
Depositors of
the Bank
All other
creditors and
Depositors of
the Bank
36 Non-compliant
transitioned
features
NO
NO
NO
NO
NO
NO
NO
NO
NO
37 If yes, specify
non-compliant
features
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
(*)Dates of allotment of equity shares: Initial Public Offer..24.03.2001; Follow-on Public Offer..03.02.2006; Preferential allotment to Govt of India..25.03.2011; Preferential allotment to Govt of
India..21.12.2013;
(**) Innovative Perpetual Debt Bonds--Call option will be exercised after 10 years run of the instruments with prior permission of Reserve Bank of India . If Call option is not exercised,
coupon will be step-up with 0.50% after 10 years of the instrument and the coupon will be at 10.00% after 31.12.2018.
(***) Upper Tier-II Bonds -- Call option will be exercised after 10 years run of the instruments with prior permission of Reserve Bank of India. If call option is not exercised, coupon will be
step-up with 0.50% after 10 years of the instrument. Then the coupons will be as under:
Upper Tier-II (I Issue) .. 9.80% after 25.03.2019 upto 25.03.2024
Upper Tier-II (II Issue) .. 9.22% after 08.06.2019 upto 08.06.2024
Upper Tier-II (III Issue) .. 9.20% after 18.12.2019 upto 18.12.2024
93
- 14: ]
]
, , -, (V ] { )
434 09065
.200.00
.10,00,000/-
111
7.25%
] 5
05.01.2005
05.04.2014
] ]
15 ]
] /
\] () \]
()
(\) : /
] , ] (] ]
, )
]
] ]
94
Table DF- 14: Full Terms and Conditions of Regulatory Capital Instruments
Name of the Issuer
Andhra Bank
Type of Instrument
Unsecured, Redeemable, Non-Convertible, Subordinated Bonds

(V Issue-Series E)
Nature of Instrument
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09065
Issue size
` 200.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
111 months
Coupon Rate
7.25% per annum
Coupon Type
Fixed
Interest payment frequency
Annual
Interest payment
Every year on 5th of January
Date of allotment
05.01.2005
Date of maturity
05.04.2014
Record date
The Banks register of Bondholders will be closed for the purpose of

payment of interest or redemption of Bonds, as the case may be, 15
days prior to the respective due date
Issue/Trading mode of the instrument
Demat only
Listed on
National Stock Exchange of India Ltd (NSE) and Bombay Stock

Exchange Ltd (BSE)
Put Option
None
Call Option
None
Step-up Option
None
Coupon with Step-option
Not applicable
Trustees
IDBI Trusteeship Services Limited
Credit Rating
M/s.India Ratings (FITCH): IND AA/Outlook Stable
Business Day definition
If any interest payment date falls on a day which is not a Business Day
(Business Day being a day on which commercial banks are open for
business in the City of Hyderabad, Andhra Pradesh) then payment of
interest will be made on the next day that is a business day but without
liability for making payment of interest for the intervening period.
95
, , -, (VI ] - { )
434 09073
.700.00
.10,00,000/-
124
9.15%
11 ]
11.01.2008
11.05.2018
] ] ]
] ] ]
30 /
] /
\] ()
\] ()
: ( ) (\) :
+/
] , ] (] ]
, )
] ]
]
96
Name of the Issuer

Type of Instrument
Andhra Bank
(VI Issue-Series F)
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09073
Issue size
` 700.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
124 months
Coupon Rate
9.15% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 11th January
Date of allotment
11.01.2008
Date of maturity
11.05.2018
Record date
Payment of interest will be made to the holders of the Bonds whose

name is registered in the Registrer of Bondholders as on the Record
Date. The Record Date/Book Closure Date for the Bonds shall be on
the close of business hours on any day within 30 days before each
interest payment and/or principal repayment date.
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option
None
Step-up Option
None
Not applicable
Trustees
Credit Rating
M/s.CARE: CARE AA+ (Double A Plus) M/s.India Ratings (FITCH):

IND AA/Outlook Stable
97
, , -, (VII ] - { ] )
434 09081
.600.00
.10,00,000/-
120
11.00%
10
10.09.2008
10.09.2018
] ] ]
] ] ]
30 /
] /
\] ()
\] ()
: ( ) (\) :
+/
] , ] (] ]
, )
] ]
]
98
Name of the Issuer
Andhra Bank
Type of Instrument

(VII Issue-Series G)
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09081
Issue size
` 600.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
120 months
Coupon Rate
11.00% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 10th September
Date of allotment
10.09.2008
Date of maturity
10.09.2018
Record date
Payment of interest will be made to the holders of the Bonds whose

name is registered in the Registrer of Bondholders as on the Record
Date. The Record Date/Book Closure Date for the Bonds shall be on
the close of business hours on any day within 30 days before each
interest payment and/or principal repayment date.
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option
None
Step-up Option
None
Not applicable
Trustees
Credit Rating
M/s.CARE: CARE AA+ (Double A Plus) M/s.India Ratings (FITCH):

IND AA/Outlook Stable
99
, , -, (VIII ] { \ )
434 09131
.320.00
.10,00,000/-
120
8.55%
24
24.12.2009
24.12.2019
] 30 /

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

] , ] (] ]
, )
]
] ]
100
Name of the Issuer
Andhra Bank
Type of Instrument
Unsecured, Redeemable, Non-Convertible, Subordinated

Bonds (VIII Issue-Series H)
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09131
Issue size
` 320.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
120 months
Coupon Rate
8.55% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 24th December
Date of allotment
24.12.2009
Date of maturity
24.12.2019
Record date
The Record Date for the Bonds shall be 30 days prior to each
interest payment / or principal replayment date.
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option
None
Step-up Option
None
Not applicable
Trustees
Credit Rating
M/s.CARE: CARE AA+ (Double A Plus) M/s.Brickwork: BWR AAA

Outlook Negative
If any interest payment date falls on a day which is not a Business

Day (Business Day being a day on which commercial banks are open
for business in the City of Hyderabad, Andhra Pradesh) then payment
of interest will be made on the next day that is a business day but
without liability for making payment of interest for the intervening period
101
, , -, ,
434 09099
.200.00
.10,00,000/-
9.50%
31
31.12.2008
] 30 /
( \ )
] /
\] ()
\] ()
10 - {
- 10
0.50%
- 31.12.2018 10.00%
: +/ () :
+/
] , ] (] ]
, )
]
] ]
102
Name of the Issuer
Andhra Bank
Type of Instrument
Unsecured, Non-cumulative Subordinated Perpetual Bonds
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09099
Issue size
` 200.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
Perpetual
Coupon Rate
9.50% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 31st December
Date of allotment
31.12.2008
Date of maturity
Perpetual
Record date
interest payment and / or principal replayment date ( in case of
exercise of call option)
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option
After 10 years run of the instrument - with prior permission of

Reserve Bank of India
Step-up Option
with 0.50% after 10 years run of the instrument, if call option is not
exercised
10.00% from 31.12.2018 if call option is not exercised
Trustees
Credit Rating
M/s.CRISIL:CRISIL AA+/Stable (Reaffirmed) M/s.Brickwork:

BWRAA+/Outlook Negative

without liability for making payment of interest for the intervening period.
103
, , - ( -II ) - ] -I,
] -
434 09107
.200.00
.10,00,000/-
15
9.30%
25 \
25.03.2009
25.03.2024
] 30 /
( \ )
] /
\] ()
\] ()
10 - {
- 10
0.50%
-25.03.2019
25.03.2024 - 9.80%
: +/ ()
: +/
] , ] (] ]
, )
]
] ]
104
Name of the Issuer

Type of Instrument
Andhra Bank
Unsecured, Redeemable, Non-Convertible (Upper Tier-II) Bonds
- Issue-I Series-A
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09107
Issue size
` 200.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
15 years
Coupon Rate
9.30% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 25th March
Date of allotment
25.03.2009
Date of maturity
25.03.2024
Record date
interest payment and/or principal repayment date (in case of
exercise of call option).
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option

Step-up Option
exercised
9.80% from 25.03.2019 till 25.03.2024 if call-option is not exercised
Trustees
Credit Rating
M/s.CRISIL:CRISIL AA+/Stable (Reaffirmed) M/s.Brickwork: BWR

AA+/Outlook Negative

105
, , - ( -II ) - ] - II { -
434 09115
.520.00
10,00,000/-
15
8.72%
8 ]
08.06.2009
08.06.2024
] 30 /
( \ )
] /
\] ()
\] ()
10 - {
- 10
0.50%
- 08.06.2019
08.06.2024 - 9.22%
: +/ () :
+/
] , ] (] ]
, )
]
] ]
106
Name of the Issuer
Andhra Bank
Type of Instrument

- Issue-II Series-B
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09115
Issue size
` 520.00 Crores
Face Value
`10,00,000/- per bond
Tenor
15 yers
Coupon Rate
8.72% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 8th June
Date of allotment
08.06.2009
Date of maturity
08.06.2024
Record date
interest payment and / or principal repayment date (in case of
exercise of call option).
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option

Step-up Option
exercised
Trustees
Credit Rating
M/s.CRISIL:CRISIL AA+/Stable (Reaffirmed) M/s.Brickwork: BWR

AA+/Outlook Negative

107
, , - ( -II ) - ] - III
- { -
434 09123
.280.00
.10,00,000/-
15
8.70%
18
18.12.2009
18.12.2024
] 30 /
( \ )
] /
\] ()
\] ()
10 - {
10
0.50%
- 18.12.2019
18.12.2024 - 9.20%
: ( ) : +/

] , ] (] ]
, )
]
] ]
108
Name of the Issuer
Andhra Bank
Type of Instrument

- Issue-III Series-C
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09123
Issue size
` 280.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
15 years
Coupon Rate
8.70% per annum
Coupon Type
Fixed
Annual
Interest payment
Every year on 18th December
Date of allotment
18.12.2009
Date of maturity
18.12.2024
Record date
interest payment and/or principal repayment date (in case of
exercise of call option)
Demat only
Listed on

Exchange Ltd (BSE)
Put Option
None
Call Option

Step-up Option
exercised
Trustees
Credit Rating
M/s.CARE:CARE AA (Double A) M/s.Brickwork: BWR AA+/Outlook

Negative

109

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2.
2.1
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2.2
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110
CORPORATE GOVERNANCE REPORT

1.
CORPORATE GOVERNANCE - PHILOSOPHY

The Philosophy of Andhra Bank is to continue to remain dynamic to the ever changing needs of the customers. The
Bank believes that proper Corporate Governance facilitates effective management and control of business. This, in
turn, enables the Bank to maintain a level of business ethics and to optimize the value for all its stakeholders. The
principles of Corporate Governance require the commitment of the Bank to attain high standard of transparency,
accountability, responsibility and financial stability with the ultimate objective of building up values to the stakeholders.
The objectives can be summed up as under:
Upholding the shareholders value within the principles of ethics and legal framework of the country;
to protect interest of shareholders and other stakeholders including customers, employees and society at large;
to ensure transparency and integration in communication and to make available full, accurate and clear
information to all concerned.
2.
BOARD OF DIRECTORS
2.1
Andhra Bank has been constituted as corresponding new Bank under the Banking Companies (Acquisition & Transfer
of Undertakings) Act, 1980.
2.2
The Board is constituted in accordance with the Banking Companies (Acquisition & Transfer of Undertakings) Act,
1980 and Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1980.
2.3
The Board is headed by the Chairman & Managing Director who is appointed by the Central Government in consultation
with the Reserve Bank of India. The Chairman & Managing Director is appointed in exercise of the powers conferred
by Clause (a) of sub section (3) of Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act,
1980 read with sub-clause (1) of clause 3, clause 5, clause 6, clause 7 and sub-clause (1) of clause 8 of Nationalized
Banks (Management and Miscellaneous Provisions) Scheme, 1980.
2.4
In addition to the Chairman and Managing Director, two Whole-time Directors (Executive Directors) of the Bank are
appointed by the Central Government in consultation with Reserve Bank of India, who are also members of the Board.
The Executive Directors of the Bank are appointed in exercise of the powers conferred by Clause (a) of sub-section
(3) of Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 read with sub-clause
(1) of clause 3 and sub-clause (1) of clause 8 of the Nationalized Banks (Management and Miscellaneous Provisions)
Scheme, 1980.
2.5
As on 31st March, 2014, there are 13 Directors on the Board consisting of three Whole- Time Directors (Chairman &
Managing Director and Two Executive Directors), a Director who is an official of the Ministry of Finance nominated by
the Central Government, a Director who is an Officer of Reserve Bank of India nominated by the Central Government
on the recommendations of RBI, a Director nominated by Central Government in consultation with RBI representing
Workmen Employees of the Bank, three Directors elected from amongst Shareholders other than Central Government,
a Director who has been a Chartered Accountant for not less than 15 years nominated by the Central Government in
consultation with RBI and three Directors nominated by the Central Government under sec 9 (3)(h) & 3(A).
2.6
The Board has constituted various committees as under, which provides specific and focused governance in the
important functional areas and control the affairs of the Bank:
Management Committee of the Board
Audit Committee of the Board
Shareholders / Investors Grievances Committee
Special Committee for monitoring large value frauds
Departmental Promotion Committee (D.P.C.) of the Board
Share Transfer Committee of the Board
Remuneration Committee of the Board
Nomination Committee of the Board
Credit Approval Committee of the Board
111

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2.12 2013-2014 11 02.05.2013
29.08.2013 16.01.2014
31.05.2013
24.09.2013 07.02.2014
22.07.2013
13.11.2013 28.03.2014
31.07.2013
27.12.2013
]
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22.07.2013

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13.12.2013
04
04

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31.03.2014
1978

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13.12.2013

112
Steering Committee on Human Resources Management

Information Technology Strategy Committee
Committee for Monitoring of Recovery in NPAs
Customer Service Committee
2.7
The details of the Committees of the Board are provided in the following pages.
2.8
The Board and its Committees meet at frequent intervals and guide the Bank to achieve its objectives in a prudent
and efficient manner to ensure high standards of customer services, ethical practices and professional Management
of the Bank.
2.9
The responsibilities such as policy formulations, performance review and analysis are discharged by the Board. The
Board has delegated various powers to the Executives and Committees of Executives of the Bank in tune with the
policies laid down by the Bank. The delegated powers are periodically reviewed by the Board and necessary revision
is made for effective functioning of the Bank.
2.10 The policies of the Bank are reviewed on an annual basis and necessary modifications are effected in tune with the
changing scenario and the market demands.
2.11 In terms of Clause 49 of the Listing Agreement, in case the Chairman of the Board is a Whole Time Director, at least
1/2 of the Board should consist of Independent Directors. Accordingly, the composition of the Board as on 31st March,
2014 is as under:
Type of Directors
No. of Directors
Executive
Non-executive
10 (out of which 7 are

Independent Directors)
Total
13
2.12 During the year 2013-14 the Board of Directors met on 11 occasions on the following dates:
02.05.2013
29.08.2013
16.01.2014
31.05.2013
24.09.2013
07.02.2014
22.07.2013
13.11.2013
28.03.2014
31.07.2013
27.12.2013
The details of attendance of each Director at the Board Meetings along with the number of meetings held during
the year are as under:
Name of the Director
Period
Sri C.VR. Rajendran

13.12.2013 to
Chairman & Managing Director 31.03.2014
No. of
Board
meetings
held
Board
Meetings
attended
Attendance at the
Thirteenth AGM
held on
22.07.2013
04
04
Not applicable
Qualification / Experience
He is a Post Graduate in Commerce

and ICWA (Inter). He started his
career in Corporation Bank in 1978.
He has 34 years of experience covering
International Banking, Investment
Banking, Merchant Banking, SSI/SME,
Agr. Lending, Industrial Finance,
Commercial Lending, Infrastructure
Financing & Information Technology
during his career in Corporation Bank.
He worked as Executive Director of
Bank of Maharashtra before joining
Andhra Bank as Chairman & Managing
113
01.04.2013
31.08.2013
05
05
01.04.2013
31.03.2014
11
11
01.04.2013
31.03.2014
11
10
30.09.2013
31.03.2014
05
02
01.04.2013
29.09.2013
06
03
13.03.2014
31.03.2014
01
01
114

1977

31 , \
]
01.01.2012

-

36
,
10.09.1975

,
[

28.12.2011

.05.10.2012

32

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1981

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1998 \
2000
,
, ,
1995 \
1997
, ,
,

] ,
]
\ -

\
2013
,

Sri B.A. Prabhakar

01.04.2013 to
Chairman & Managing Director 31.08.2013
05
05
Attended
He is a Chartered Accountant, joined

Bank of Baroda as an Officer in the
year 1977. He worked extensively in
the area of credit, operations and
Treasury during his career in Bank of
Baroda with rich experience of 31 years.
He worked as Executive Director of
Bank of India before joining Andhra
Bank as Chairman & Managing Director
on 01.01.2012.
Sri K.K. Misra

Executive Director
01.04.2013 to
31.03.2014
11
11
Attended
He has 36 years of Banking experience

and is B.A., LLB and CAIIB. He joined
Canara Bank as Officer trainee on
10.09.1975. He worked as Managing
Director of CanFin Homes Ltd., Bangalore
and as Chairman of Aligarh Gramin
Bank & Shreyas Gramin Bank. He has
worked in various capacities including
that of GM of Canara Bank before
joining our Bank on 28.12.2011 as
Executive Director.
Sri S.K.Kalra
Executive Director
01.04.2013 to
31.03.2014
11
10
Attended
He joined as an Executive Director in

the Bank on 05.10.2012. He has 32
years of experience in Banking. He is
Post Graduate in Science and MBA
(Finance) with CAIIB. He joined in
Allahabad Bank as Probationary
Officer during 1981. He worked in
various capacities and is having rich
experience in Operations, Corporate
Credit, International and Industrial
Finance. He also served as Zonal
Head of various Zones. He was heading
Treasury Branch in Allahabad Bank in
the capacity of General Manager,
Treasury prior to joining the Bank.
Sri Anandrao Vishnu Patil

30.09.2013 to
Govt. of India Nominee Director 31.03.2014
05
02
Not applicable
He is an IAS, 1998 Batch. He worked

in various capacities since 2000 and
presently he is Director, Department
of Financial Services, Ministry of
Finance, New Delhi.
Sri Mohammad Mustafa

01.04.2013 to
Govt. of India Nominee Director 29.09.2013
06
03
Leave of Absence
He is an IAS, 1995 Batch. He worked

in various capacities since 1997 and
presently he is working as Director,
Ministry of Finance, Govt. of India,
New Delhi.
Sri E.E. Karthak

RBI Nominee Director
01
01
Not applicable
He is a Post Graduate in Political Science

from Jawaharlal Nehru University,
Delhi. He was with Government of
India on deputation basis in two phases.
He has also started RBI's operations
in Sikkim as Officer-in-Charge and
continued to head till 2013. Currently
he is Chief General Manager in RBI,
Kolkata.
13.03.2014 to
31.03.2014
115
01.04.2013
12.03.2014
25.11.2013
31.03.2014
10
10
04
02
,
,

]
29
,
\ \
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36

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1977
35
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20

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01.04.2013
10.05.2013
01
01
]
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01.04.2013
30.06.2013
02
02
] \
01.04.2013

31.03.2014

01.04.2013
-
28.07.2013
11
09
03
03
15.10.2013
05
05
.
12.12.2013
-
31.03.2014
04
03

18.02.2014
-
31.03.2014
01
01
31.03.2014
116
]-
]-
, ] , ]
2008-2011

]
-

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-

Sri K.R.Ananda
01.04.2013 to
12.03.2014
10
10
Leave of Absence
Sri K. Thamaraiselvan
Representing Workmen
Employee Director
25.11.2013 to
31.03.2014
04
02
Not applicable

and Graduate in Law. He has Banking
experience of 29 years and presently
working as Single Window Operator-B
at Porur Branch, Chennai Zone. He
is presently General Council Member
AIBEA, Deputy General Secretary,
All India Andhra Bank Award Employees
Union, Central Committee Member,
Tamilnadu Bank Employees Federation,
General Secretary, Andhra Bank
Employees Union, Madras.
Sri Manoranjan Das

Representing Workmen
Employee Director
01.04.2013 to
10.05.2013
01
01
Not applicable
He is a Graduate in Arts and in Law

with 36 years of experience in the
Bank. He has represented Workmen
Employees of the Bank in the Board.
Sri N. Raja Gopal Reddy

Representing Officer
Employee Director
01.04.2013 to
30.06.2013
02
02
Not applicable
He is a Post Graduate in Behavioral

Studies. He joined the Bank in the year
1977. He has an experience of 35
years in the Bank. He has represented
Non-Workmen Employees of the Bank
in the Board.
Sri Pankaj Chaturvedi

Part-time Non-Official Director
01.04.2013 to
31.03.2014
11
09
Attended
He is a Practicing Chartered Accountant

with more than 20 years experience.
He is also an advisor to many
Corporate Groups.
Sri N. Venkata Ramana Reddy 01.04.2013 to

Part-time Non-Official Director 28.07.2013
15.10.2013 to
31.03.2014
03
03
Attended
05
05
He is a Graduate in Agricultural Science.

He is also a consultant in Modern
Agro Farming.
Dr. Naina Sharma

12.12.2013 to
31.03.2014
04
03
Not applicable
She holds a Doctorate in Sociology

with Masters Degree in Sociology. She
is a Professor in the Department of
Sociology, University of Rajasthan,
Jaipur. Earlier she was a Director on
the Board of United Bank of India during
the period 2008-2011.
Sri Amit Goel

18.02.2014 to
31.03.2014
01
01
Not applicable
He is a Graduate in Commerce and

Law. He works in the space of policy
for 'inclusive growth - inclusive
governance'. He was a full-time
Advisor to the High Powered Committee
for review of the functioning to Zonal
Cultural Centres set up for cultural
outreach of the underprivileged section
of society in rural and urban areas. He
is at present a full-time Advisor for
Coordination Committee, for Zonal
Cultural Committees, which was set
up by the Prime Minister.
117
He is a Post Graduate from Indian

Statistical Institute, Delhi. He is
presently Chief General Manager in
RBI, Mumbai.
]. .
01.04.2013

\ 31.03.2014
11
11
.,

\
01.04.2013
31.03.2014
11
09
.
t
\
01.04.2013
31.03.2014
11
09
2013-2014

]
]

,
. ,
,
2013-2014

,
,
, \
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],
,
,
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37
]

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35
] \
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1972
-
10.05.2013
30.06.2013
28.07.2013
31.08.2013
29.09.2013
12.03.2014
30.09.2013
15.10.2013
25.11.2013
12.12.2013
13.12.2013
18.02.2014
13.03.2014
2.13

]

- /

1.
2.
3.\\

4.]
5.
6.

7.
8.
118

1.
2.
3.\\

4.]
5.
6.

7.
8.

13.12.2013
31.03.2014
Sri G.R. Sundaravadivel

Director elected from amongst
shareholders other than
Central Government
01.04.2013 to
31.03.2014
11
11
Attended

and Graduate in Law. He is a retired
Executive Director from United Bank
of India. He had Banking experience
of 37 years. He worked as Banking
Ombudsman in the State of Kerala
and Union Territory of Lakshadweep.
Sri K. Raghuraman
Central Government
01.04.2013 to
31.03.2014
11
09
Attended
He is a Chartered Accountant and retired

as an Executive Director from Punjab
National Bank. He had 35 years of
Banking experience in various capacities.
Prof. Nandlal L. Sarda

Central Government
01.04.2013 to
31.03.2014
11
09
Attended
He has done his Phd in Engineering.

At present, he is a Professor in the
Department of Computer Science &
Engineering at IIT, Powai, Mumbai. He
is in the teaching profession since 1972.
Names of persons who ceased to be Directors during the year 2013-14

Date of Cessation
Sri Manoranjan Das
10.05.2013
Sri N Raja Gopal Reddy
30.06.2013
Sri N Venkata Ramana Reddy
28.07.2013
Sri B.A. Prabhakar, Chairman & Managing Director
31.08.2013
Sri Mohammad Mustafa, Govt. of India Nominee Director
29.09.2013
Sri K.R. Ananda, RBI Nominee Director
12.03.2014
Names of persons who were appointed as Directors during the year 2013-14
Date of Appointment
Sri Anandrao Vishnu Patil, Govt. of India Nominee Director
30.09.2013
Sri N Venkata Ramana Reddy, Director
15.10.2013
Sri K. Thamaraiselvan, Workmen Employee Director
25.11.2013
Dr. Naina Sharma, Director
12.12.2013
Sri C.VR. Rajendran, Chairman & Managing Director
13.12.2013
Sri Amit Goel, Director
18.02.2014
Sri E.E. Karthak, RBI Nominee Director
13.03.2014
2.13 Particulars of Directors

Sri C.VR.Rajendran
Chairman & Managing
Director
Directorship/Membership
of Committees in other
Companies
None
Membership of the
Committees in the Bank
1. Management Committee of the
Board
2. D.P.C. of the Board
3. Special Committee for monitoring
large value frauds
4. Risk Management Committee
5. Credit Approval Committee
6. Steering Committee of Board on
Human Resources.
7. Committee for Monitoring of
Recovery in NPAs
8. Customer Service Committee
119
Chairman /
Chairperson of the
Committees
Period of
Directorship
from - to
1.Management Committee of the

13.12.2013 to
Board
31.03.2014
3.Special Committee for monitoring
large value frauds
4.Risk Management Committee
5.Credit Approval Committee
6.Steering Committee of Board on
Human Resources.
7.Committee for Monitoring of
Recovery in NPAs
8.Customer Service Committee

1. 1.

2.
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5.
6.

7.

1. 1.

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6.
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9.
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7.
8.
9.
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5.
6.
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120
1.
01.04.2013
2.
31.08.2013
3.\\

4.]
5.
6.

7.

01.04.2013
31.03.2014
1.
01.04.2013
31.03.2014
1.
2.
30.09.2013
31.03.2014
1.
2.
01.04.2013
29.09.2013
Sri B.A. Prabhakar

Chairman & Managing
Director
1.India International Bank 1.Management Committee of the

(Malaysia) BHD as Director Board
2.D.P.C. of the Board
large value frauds
Human Resources.
Recovery in NPAs
1. Management Committee of the 01.04.2013 to

Board
31.08.2013
large value frauds
Human Resources.
Recovery in NPAs
Sri K.K. Misra

Executive Director
1.Andhra Bank Financial

Services Ltd - Chairman of
the Board.
2.IndiaFirst Life Insurance
Limited - (Nominee Director).
3. ASREC India Ltd.
(Nominee Director).
4.Designated Director on
the Bank's Board as per
PMLA Act 2002.
1. Management Committee of Board None

2. Audit Committee of Board.
3. D.P.C. of Board
4. Shareholders' / Investors'
Grievances Committee of Board
of Board.
6. Share Transfer Committee of Board
7. Credit Approval Committee of Board
Human Resources.
Recovery in NPAs
01.04.2013 to
31.03.2014
Sri S.K. Kalra

Executive Director
None

1. Share Transfer Committee
Board
2. Audit Committee of the Board
3. D.P.C. of Board
Grievances Committee
7. Credit Approval Committee of Board
Human Resources.
Recovery in NPAs
10. IT Strategy Committee
01.04.2013 to
31.03.2014
Sri Anandrao Vishnu Patil None

Govt. of India Nominee
Director
1.Audit Committee of the Board

1.Remuneration Committee of Board 30.09.2013 to
2.Nomination Committee of Board 31.03.2014
4.Special Committee for Monitoring
Large value Frauds
5.Remuneration Committee of Board
6.Nomination Committee of Board
Human Resources.
Recovery in NPAs

Govt. of India Nominee
Director
1.Audit Committee of the Board

1.Remuneration Committee of Board 01.04.2013 to
2.Nomination Committee of Board 29.09.2013
4.Special Committee for Monitoring
Large Value Frauds
5.Remuneration Committee of Board
6.Nomination Committee of Board
None
121
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(01.04.2013
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(01.04.2013 28.07.2013)
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1.
(29.01.2014 28.07.2014)
2.
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, ] . 1. (28.03.2014 )
2.
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122
13. 03. 2014

31.03.2014
01.04.2013
12.03.2014
25.11.2013
31.03.2014
01.04.2013
10.05.2013
01.04.2013
31.03.2014
01.04.2013
28.07.2013
15.10.2013
31.03.2014
12.12.2013
31.03.2014
18.02.2014
31.03.2014

Human Resources.
8. Committee for monitoring of
Recovery in NPAs
Sri E.E. Karthak
None
1. Management Committee
None
2. Audit Committee
3. D.P.C of the Board
4. Remuneration Committee of the Board
13.03.2014 to
31.03.2014
Sri K.R. Ananda

None
1.Management Committee
None
2.Audit Committee
3.D.P.C of the Board
4.Remuneration Committee of the Board
01.04.2013 to
12.03.2014
Sri K.Thamaraiselvan
Workmen Employee
Director
None
1. Share Transfer Committee of the Board None
25.11.2013 to
31.03.2014
Sri Manoranjan Das

Workmen Employee
Director
None
1. Management Committee of the Board None

3. Risk Management Committee of
the Board.
01.04.2013 to
10.05.2013

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

Services Pvt. Ltd. (Unlisted 2. Audit Committee of Board.
Indian Company) Member 3. Customer Service Committee.
2. Vijayalakshmi Printing
Works Pvt. Ltd. (Unlisted
Indian Company) Member
3. First Serv. Solutions Pvt. Ltd.
4. Mahavidya International
Pvt Ltd. Singapore
(Unlisted Foreign Company)
01.04.2013 to
31.03.2014
Sri N.V.R. Reddy

Director
None

None
Board (01.04.2013 to 28.07.2013)
Grievances Committee (01.04.2013
to 28.07.2013)
(01.04.2013 to 28.07.2013)
large value frauds (01.04.2013 to
28.07.2013)
(01.04.2013 to 28.07.2013)
Board (13.11.2013 to 12.05.2014)
(16.01.2014 to 31.03.2014)
8. Nomination Committee of the
Board (02.02.2014 to 31.03.2014)
01.04.2013 to
28.07.2013
15.10.2013 to
31.03.2014
Dr. Naina Sharma

Director
None

Board (29.01.2014 to 28.07.2014)
2. Nomination Committee of the
Board (w.e.f. 02.02.2014)
None
12.12.2013 to
31.03.2014
Sri Amit Goel

Director
Energy India Limited,

Director

(w.e.f. 28.03.2014)
2.IT Strategy Committee
(w.e.f. 28.03.2014)
None
18.02.2014 to
31.03.2014
123
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01.04.2013
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30.06.2013
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2013-2014
] 13.12.2013
30.09.2013 .
13.03.2014
, - 15.10.2013
124

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

Ltd (Subsidiary of REPCO
Bank-Govt. of India
Enterprise) - Director
2. Hindustan Photo Films
Manufacturing Company
Ltd. Nominee Director of
UTI AMC (P) Ltd.
3. Ind Bank Merchant
Banking Services Ltd
Sri K Raghuraman
other than Central
Government
1. Birla Ericson Opticals Ltd., - 1. Management Committee of the

1.Shareholders' / Investors'
Director and member in
Board (22.07.2013 to 10.11.2013 & Grievances Committee
Audit Committee.
22.01.2014 to 31.03.2014)
2. Nagarjuna Agrichem Ltd., - 2. Audit Committee of Board
Director and Member in
(01.04.2013 to 14.03.2014)
Audit Committee
3. Can Bank Factors Ltd., - Grievances Committee.
Director and Chairman in 4. Risk Management Committee.
Audit Committee
4. Oriental Carbon &
large value frauds.
Chemicals Ltd., Director 6. Share Transfer Committee.
5. Centbank Financial
Services Ltd., Director and (w.e.f.30.08.2012)
Member in Audit Committee| 8. Steering Committee of the Board
6. Laderup Financial
on Human Resources
Services Ltd. Director and (w.e.f.05.06.2012)
Member in Audit Committee
7. Rama Phosphates Ltd.,
Director and Chairman in
Audit Committee
8. NELCO Limited-Director
and Member in Audit
Committee
9. Lanco Budhil Hydro
Electrical Pvt Ltd-Director
and Chairman in Audit
Committee
01.04.2013 to
31.03.2014

other than Central
Government
1. IDBI Intech Limited

(Member, Audit Committee)
2.Clearing Corporation of
India (Chairman, IT
Committee)
3.Cybertech Systems and
Software Ltd.

IT Strategy Committee
Board (29.07.2013 to 28.01.2014)
2. Spl. Committee for Monitoring
Large Value Frauds. (16.01.2014 to
31.03.2014)
3. Remuneration Committee of Board
01.04.2013 to
31.03.2014
1.Management Committee of Board None

2.Shareholders' / Investors'
Grievances Committee.
01.04.2013 to
30.06.2013
Sri N. Raja Gopal Reddy None

Officer Employee Director

None
Board (01.04.2013 to 21.01.2014)
Grievances Committee of Board.
of Board.
5. Special Committee for Monitoring
Large Value Frauds.
6. Remuneration Committee of Board.
Human Resources. (w.e.f.05.06.2012)
8. Audit Committee (w.e.f.14.03.2014)
01.04.2013 to
31.03.2014
During the year 2013-14..

Sri C.VR. Rajendran appointed as Chairman & Managing Director of the Bank w.e.f. 13.12.2013;
Sri Anandrao Vishnu Patil nominated on the Board as on 30.09.2013 as GOI Nominee Director in place of Sri Mohammad Mustafa;
Sri E.E. Karthak nominated on the Board as RBI Nominee Director w.e.f. 13.03.2014 in place of Sri. K.R. Ananda;
Sri N.V.R. Reddy, Part-Time Non-Official Director renominated w.e.f. 15.10.2013;
125
2.14 31.03.2014
1. ]
13.12.2013
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126
2.14 Profile of Directors on the Board as on 31.03.2014

1.
Sri C.VR. Rajendran

He is the Chairman & Managing Director of the Bank w.e.f. 13.12.2013. He is a Post Graduate in Commerce with
CAIIB and ICWAI (Inter). He started his banking career in Corporation Bank in 1978. He has worked as Zonal
Manager and has varied experience in the areas of International Banking, Investment Banking, Merchant Banking,
SSI/SME/Agr. Lending, Industrial Finance, Commercial Lending, Infrastructure Financing & Information Technology.
During his illustrious career, he has received repeated Recognitions and Awards like Chairmans Club Membership,
Super Productivity Award, SOGian Award, Millennium Award and Best Branch Award. He worked as General Manager
in Corporation Bank during May 2008 to 2012 overseeing International Banking and Information Technology Divisions.
He was the Executive Director of Bank of Maharashtra from 01.03.2012 till 12.12.2013, prior to joining our Bank.
2.
Sri K.K. Misra

He is an Executive Director of the Bank w.e.f. 28.12.2011. He is a Graduate in Arts and in Law with CAIIB. He had
36 years of banking experience. He joined Canara Bank as Officer Trainee on 10.09.1975 and worked in various
capacities as Managing Director of CanFin Homes Ltd., and Chairman of Aligarh Gramin Bank & Shreyas Gramin
Bank. He also worked as Regional Head, Zonal Head in Bangalore and Chandigarh Circles of Canara Bank.
3.
Sri S.K. Kalra

He joined as an Executive Director in the Bank on 05.10.2012. He is a Post Graduate in Science and MBA (Finance)
with CAIIB. He joined Allahabad Bank as Probationary Officer in 1981. He had 31 years of experience in the Bank.
He worked in various capacities in Operations, Industrial Finance & Corporate Credit and acquired good exposure.
He also served as Head of various Zones. Before joining the Bank as an Executive Director, he was heading Treasury
Branch in Allahabad Bank as General Manager.
4.

He joined the Board on 30.09.2013 as GOI Nominee Director. He is an IAS belonging to 1998 Batch of Tamil Nadu
Cadre. He worked in various capacities like Additional Collector and Project Officer, Commissioner, District Magistrate,
Secretary, Joint Commissioner, PS to Honble Minister of Heavy Industries and Public Enterprises, PS to Honble
Minister of Rural Development and Minister of Panchyati Raj, PS to Honble Minister of Science & Technology, Minister
of Earth Science, Minister of Micro, Small & Medium Enterprises (MSME). Presently, he is the Director, Department
of Financial Services, Ministry of Finance, Govt. of India, New Delhi.
5.
Sri E.E. Karthak

He has a Masters in Political Sciences from Jawaharlal Nehru University, Delhi. He is the Chief General Manager,
Reserve Bank of India, Kolkata. He is the RBI Nominee Director on the Board of the Bank since 13.03.2014. He has
29 years of Banking experience in various capacities. He was also with Government of India on deputation basis in
two phases 1991 to 1993 and 2002 to 2008. He started RBIs operations in Sikkim as Officer-in-Charge and continued
to head till 2013.
6.
He is a Graduate in Law and a Post Graduate in Commerce with CAIIB. He joined the Bank as a Clerk in 1985 and at
present he is working as Single Window Operator-B at Porur Branch, Chennai Zone. He is presently General Council
Member-AIBEA, Deputy General Secretary-All India Andhra Bank Award Employees Union, Central Committee
Member-Tamilnadu Bank Employees Federation and General Secretary-Andhra Bank Employees Union, Madras.
7.

He is a practicing Chartered Accountant having experience of more than 20 years. He is a partner of M/s Chaturvedi &
Co., Chartered Accountants, New Delhi, a leading CA Firm. He has experience in handling Audits of Large Corporate
Groups and Banks. He is also an advisor to many corporate groups on Corporate Finance and Mergers & Acquisitions.
8.
Sri N. Venkata Ramana Reddy

He is a graduate in Agriculture and a Consultant in Agriculture Modern Agro Farming. He had varied experience as
Vice Chairman, Spices Board (GOI), Member Trustee, Tirumala Tirupati Devasthanams, Member Trustee, Vizag Port
Trust, Director, Forest Development Corporation and Member, Censor Board.
9.
Dr. Naina Sharma

She is a Post Graduate and Doctorate in Sociology. She is a Professor in the Department of Sociology, University of
Rajasthan, Jaipur. She has been awarded Best Citizen of India and Shiksha Ratan Puraskar by India International
127
, 2008 2011 ]
] ] ] ]
] ] ,
]
10.
] -
] { \ \ , \\- - [
2006-08 \ ] , (\) - 11
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7
.14.03.2012
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, , ], ^/
], ] ] , , , \

, , ]
14 ] 21.05.2013
28.09.2013
16.01.2014
29.06.2013
19.10.2013
07.02.2014
31.07.2013
12.11.2013
08.03.2014
29.08.2013
06.12.2013
28.03.2014
24.09.2013
19.12.2013
128
Friendship Society during 2012 and recipient of Best Teacher Award from various organizations. Earlier she was a
Director on the Board of United Bank of India during the period 2008 2011. She has published various articles on
Sociology in Social Science Journals and has authored two books titled Banking and Social Change in India and
Book Value Education and Social Transformation. Also had organized a number of National Conferences on Moral
Education, etc., which have been widely appreciated.
10.
Sri Amit Goel

He is a Graduate in Commerce and Law. He works in the space of policy for inclusive growth inclusive governance.
He is at present a full-time Advisor to the Coordination Committee for Zonal Cultural Committees, set up for cultural
outreach of the underprivileged sections of society in rural and urban areas, which was set up by the Prime Minister of
India. Earlier, he was a full-time Advisor to the High Powered Committee. He was also an Advisor to the Government of
Chattisgarh and Uttarakhand and also to Confederation of Indian Industry CII and full-time Advisor, Rural Business
Hubs (RBH) in the Ministry of Panchayat Raj, Government of India during 2006-2008. He is a strong votary of women
SHG movement, promotion of livelihoods of artistes and artisans, financial and digital inclusion of the underprivileged,
micro finance and skills development. He has made a number of documentary films and edits Think India, an India
centric quarterly journal.
11.

He is a retired Executive Director from United Bank of India with more than 37 years of Banking experience, of which
14 years was in the Top Management Cadre in Indian Bank and above 4 years as Whole Time Director in United Bank
of India. He also worked as Banking Ombudsmen for the State of Kerala and UT Lakshadweep for a period of 2 years.
12.
Sri K Raghuraman
He is a Chartered Accountant and retired as Executive Director in Punjab National Bank. Earlier he worked as General
Manager for over 7 years in various departments of Central Bank of India. He held the position of Chairman of India
Cooperation Committee of Master Card International as well as the Member of various industry level Committees of
IBA. He has been re-elected as Director from amongst shareholders other than Central Government w.e.f. 14.03.2012
for a period of three years.
13.

He is a Professor in the Department of Computer Science and Engineering at IIT, Powai, Mumbai. He is in the teaching
profession since 1972. His research interests are in the areas of Database Systems and Software Engineering. He is
associated with many companies and Government institutions as a Consultant. He has served as a Director of Union
Bank of India. He is also serving on the Technical Advisory Committees of many organizations.
3.
COMMITTEE ON THE BOARD OF DIRECTORS / EXECUTIVES

Various committees of Directors have been constituted in terms of Reserve Bank of India, Government of India
guidelines / directives in order to expedite the decision making and proper monitoring and follow-up of the various
activities falling within their terms of reference.
The Committees of the Board are as under:
3.1
Management Committee of the Board

Pursuant to the directive of the Government of India, Ministry of Finance, the Management Committee of the Board is
constituted by the Board of Directors for considering various business matters namely sanctioning of credit proposals,
loan compromise / write-off proposals, approval of capital and revenue expenditure, acquisition and hiring of premises,
investments, donations etc.
The Committee consists of Chairman & Managing Director, Executive Directors, Nominee Director of Reserve Bank
of India and three Independent Non Official Directors. In all, 14 Meetings of the Committee were held during the year,
on the following dates:
21.05.2013
28.09.2013
16.01.2014
29.06.2013
19.10.2013
07.02.2014
31.07.2013
12.11.2013
08.03.2014
29.08.2013
06.12.2013
28.03.2014
24.09.2013
19.12.2013
129
] \

]

]

13.12.2013 31.03.2014
05
05

01.04.2013 31.08.2013
04
04
..

01.04.2013 31.03.2014
14
14
..

01.04.2013 31.03.2014
14
13

13.03.2014 31.03.2014
01
01

01.04.2013 12.03.2014
13
12
] \
- ( )
01.04.2013 31.03.2014
14
12

-
01.04.2013 28.07.2013
02
02
13.11.2013 31.03.2014
06
06
.
-
29.01.2014 31.03.2014
03
03
]

\
22.07.2013 21.01.2014
09
09
.

\
11.05.2013 10.11.2013
07
05
22.01.2014 31.03.2014
03
02

\
29.07.2013 28.01.2014
09
07
]
\
01.04.2013 30.06.2013
02
02
]
\
01.04.2013 10.05.2013
--3.2
] \ , ]
, ..

9
02.05.2013
29.08.2013
12.11.2013
06.07.2013
07.09.2013
07.02.2014
30.07.2013
07.10.2013
28.03.2014
130
The attendance of the Members along with the number of meetings held during the period is given below:
Period
No. of M.C. meetings

held during the period
Sri C.VR. Rajendran

13.12.2013 to 31.03.2014
05
05
Sri B.A. Prabhakar

01.04.2013 to 31.08.2013
04
04
Sri K.K. Misra

Executive Director
01.04.2013 to 31.03.2014
14
14
Sri S.K. Kalra

Executive Director
01.04.2013 to 31.03.2014
14
13
Sri E.E. Karthak

13.03.2014 to 31.03.2014
01
01
Sri K.R. Ananda

01.04.2013 to 12.03.2014
13
12

(CA Category)
01.04.2013 to 31.03.2014
14
12
01.04.2013 to 28.07.2013
13.11.2013 to 31.03.2014
02
06
02
06
Dr. Naina Sharma

29.01.2014 to 31.03.2014
03
03

shareholders other than Central
Government
22.07.2013 to 21.01.2014
09
09
11.05.2013 to 10.11.2013
22.01.2014 to 31.03.2014
07
03
05
02
Prof. Nandlal L Sarda

Government
29.07.2013 to 28.01.2014
09
07

01.04.2013 to 30.06.2013
02
02
Sri Manoranjan Das

Workmen Employee Director
01.04.2013 to 10.05.2013
--
--
Sri N.V.R. Reddy

Sri. K. Raghuraman
Government
No. of M.C.
meetings attended
3.2 Audit Committee of the Board

Pursuant to the directives of Reserve Bank of India, the Audit Committee of the Board was constituted / re-constituted
with five directors viz. Executive Director, Nominee Directors of Government of India and Reserve Bank of India and
Two Independent Non-Official(Non-Executive) Directors. One of the Independent Non-Official Directors under CA category
chairs the meetings of the Audit Committee.
The Committee met 9 times during the year under review, on the following dates:
02.05.2013
29.08.2013
12.11.2013
06.07.2013
07.09.2013
07.02.2014
30.07.2013
07.10.2013
28.03.2014
131
\ ]
, \ / ]

/ , ( )
\- ,
\
]
] , ]
] \

] -

] \
- ( )
(01.04.2013 31.03.2014 )
09
09
..
(01.04.2013
31.03.2014 )
09
08
..
(01.04.2013
31.03.2014)
09
08

(30.09.2013 31.03.2014)
04
00

(01.04.2013 29.09.2013)
/ -
05
03

(13.03.2014 31.03.2014)
/ -
01
01

(01.04.2013 12.03.2014 )
/ -
08
07

\ (01.04.2013
13.03.2014 )
/ - /

08
07
]

\ (14.03.2014
31.03.2014 )
/ - /

01
01
132
The Audit Committee of the Board provides directions and also oversees the operations of the total Audit Functions of the
Bank which include organization, operationalisation and quality control of the internal audit and inspection system and
follow-up of the Statutory / External Audit of the Bank and Annual Financial Inspection by Reserve Bank of India.
The Committee reviews internal inspection / audit functions, follow-up on all issues raised in the Long Form Audit Report
(LFAR) and interacts with the external auditors in respect of LFAR. The Committee also reviews the compliance of the
Accounting Standards in terms of reporting process, disclosure of financial information and compliance in terms of other
statutory requirements.
The Committee reviews inspection reports of the specialized and extra large branches and the branches with unsatisfactory
ratings. It also reviews inter-branch adjustment accounts, unreconciled long outstanding entries in inter-bank accounts
besides reviewing the position of house-keeping.
The attendance of members along with the number of meetings held during the period is given below:
Type of Director
Number of Audit
Committee meetings
held during the period
of their tenure
Number of
meetings
attended

(CA Category) (01.04.2013 to
31.03.2014)
Chairman of the Committee
09
09
Sri K.K. Misra

Executive Director (01.04.2013 to
31.03.2014)
Member
09
08
Sri S.K. Kalra

Executive Director (01.04.2013 to
31.03.2014)
Member
09
08

Govt. of India Nominee Director
(30.09.2013 to 31.03.2014)
Member / Non Executive
04
--

(01.04.2013 to 29.09.2013)
05
03
Sri E.E. Karthak

(From 13.03.2014 to 31.03.2014)
01
01
Sri K.R. Ananda

(01.04.2013 to 12.03.2014)
08
07
Sri K. Raghuraman
Government (01.04.2013 to
13.03.2014)

/ Independent Director
08
07

31.03.2014)

/ Independent Director
01
01
133
3.3 ] ()
] ] ] , ]
, 28.06.2001 ] , ,
\ \, ] ] ]
\\
] 4
31.05.2013
27.12.2013
24.09.2013
28.03.2014
.:

] ]
02
02

(13.12.2013 31.03.2014)

01
01

(01.04.2013 31.08.2013)
..
04
04

(01.04.2013 31.03.2014)
..
04
04

(01.04.2013 31.03.2014)

02
-
(30.09.2013 31.03.2014)
.
02
02

(01.04.2013 29.09.2013)
]
04
04

\ (01.04.2013
31.03.2014)
.
04
03

\ (01.04.2013
31.03.2014)
]
01
01
\
(01.04.2013 30.06.2013)
]
-- \
(01.04.2013 10.05.2013)
134
3.3 Risk Management Committee of Board (RMC)

The Bank has constituted a Risk Management Committee of the Board on 28.06.2001 with an objective to empower one
group with full responsibility of evaluating overall risks faced by the Bank and determining the level of risks, which will be
in the best interest of the Bank. The Committee is constituted with the Chairman & Managing Director, Executive Director,
Govt. of India Nominee Director and three other Directors. The Committee met four times during the year and discussed
various matters relating to operational, market and credit risks of the Bank.
The Risk Management Committee met 4 times during the year on the following dates:
31.05.2013
27.12.2013
24.09.2013
28.03.2014
The attendance of the members along with the number of meetings held during the period of their tenure is given below:
Type of Director
Number of Risk
Management Committee
meetings held during the
period of their tenure
Number of
meetings
attended
Sri C.VR. Rajendran

(13.12.2013 to 31.03.2014)
Chairman
02
02
Sri B.A. Prabhakar

(01.04.2013 to 31.08.2013)
Chairman
01
01
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
04
04
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Member
04
04

(30.09.2013 to 31.03.2014)
Member
02
--

(01.04.2013 to 29.09.2013)
Member
02
02

31.03.2014)
Member
04
04
Sri K Raghuraman
31.03.2014)
Member
04
03

(01.04.2013 to 30.06.2013)
Member
01
01
Sri Manoranjan Das

(01.04.2013 to 10.05.2013)
Member
--
--
135
3.4 ...
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(13.12.2013 31.03.2014)

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01

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01
01

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01
01

(01.04.2013 31.03.2014)

--
(30.09.2013 31.03.2014)
.
01
01

(01.04.2013 29.09.2013)

--
(13.03.2014 31.03.2014)

01
01

(01.04.2013 12.03.2014)
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31.05.2013
08.03.2014
27.12.2013
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02
02

(13.12.2013 31.03.2014)
136
3.4 D.P.C. of the Board

D.P.C. of the Board is constituted in terms of Govt. of India directions to specifically look into the Review of the position
of disposal of vigilance disciplinary cases and Departmental Enquiries in the Bank.
The Committee consists of 5 Directors. The Committee met 1 time during the year on 31.07.2013.
The attendance of the members along with the number of meetings held during the period of their tenure during the
year is given below:
Type of Director
Number of D.P.C.
meetings held
during the period
Number of
meetings
attended
Sri C.VR. Rajendran

(13.12.2013 to 31.03.2014)
Chairman
--
--
Sri B.A. Prabhakar

(01.04.2013 to 31.08.2013)
Chairman
01
01
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
01
01
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Member
01
01

(30.09.2013 to 31.03.2014)
Member
--
--

(01.04.2013 to 29.09.2013)
Member
01
01
Sri E.E. Karthak

(13.03.2014 to 31.03.2014)
Member
--
--
Sri K.R. Ananda

(01.04.2013 to 12.03.2014)
Member
01
01
3.5 Special Committee for Monitoring Large Value Frauds

Special Committee for Monitoring Large Value Frauds, a Board level Committee is constituted as per the directions
of Reserve Bank of India to specifically monitor and follow-up the cases of frauds involving an amount of `1.00 crore
& above exclusively.
The Committee consists of 5 Directors. The Committee met three times during the year on the following dates:
31.05.2013
08.03.2014
27.12.2013
Sri C.VR. Rajendran

(13.12.2013 to 31.03.2014)
Type of Director
Chairman
137
Number of Special Committee

for Monitoring Large Value
Frauds Meetings held
during the period
Number of
meetings
attended
02
02

(01.04.2013 31.08.2013)

01
01
02
02

(30.09.2013 31.03.2014)
.
01
01

(01.04.2013 29.09.2013)

01
01
-
(01.04.2013 28.07.2013)
]..
03
03

\ (01.04.2013
31.03.2014)

03
02

\ (01.04.2013
31.03.2014)

01
01

\ (16.01.2014
31.03.2014)
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4 ]
22.07.2013
16.01.2014
28.09.2013
] \

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03
03
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(01.04.2013 31.03.2014)
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(01.04.2013 31.03.2014)
03
03
.. ,

(01.04.2013 31.03.2014)
03
03
...,
-
(01.04.2013 28.07.2013)
01
01
138
Sri B.A. Prabhakar

(01.04.2013 to 31.08.2013)
Chairman
01
01

(30.09.2013 to 31.03.2014)
Member
02
02

(01.04.2013 to 29.09.2013)
Member
01
01
Sri N.V.R. Reddy

Part-Time Non-Official Director
(01.04.2013 to 28.07.2013)
Member
01
01

31.03.2014)
Member
03
03
Sri K. Raghuraman
31.03.2014)
Member
03
02

31.03.2014)
Member
01
01
3.6 Shareholders / Investors Grievances Committee

3.6.1 The Bank has constituted a Committee of the Board - Shareholders / Investors Grievances Committee to
specifically look into the redressal of the shareholders grievances. The Committee consists of 4 Directors and met
three times during the year and reviewed the position of the complaints, on the following dates:
22.07.2013
16.01.2014
28.09.2013
Type of Director
No. of Meetings of shareholders / Investors

Grievances Committee
Held during the tenure
Attended
Chairman
03
03
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03
Sri N.V.R. Reddy

(01.04.2013 to 28.07.2013)
Member
01
01
Sri K Raghuraman
31.03.2014)
139
]..

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31.03.2014)
03
03
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(01.04.2013 30.06.2013)
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(01.04.2013 10.05.2013)
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31.03.2014

3.7
4
:
22.07.2013
16.01.2014
28.09.2013
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(01.04.2013
31.03.2014)
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(01.04.2013 31.03.2014)
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(01.04.2013 28.07.2013)
01
01

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01
2013-2014 749 3,83,200 ]
15 ]
] ] ]\
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31.03.2014
140

31.03.2014)
Member
03
03

(01.04.2013 to 30.06.2013)
Member
--
--
Sri Manoranjan Das

(01.04.2013 to 10.05.2013)
Member
--
--
3.6.2 In terms of Clause 47 of the Listing Agreement entered into with Stock Exchanges, Mr. T.R. Ramabhadran, Company
Secretary is designated as the Compliance Officer for the purpose of complying with the various terms of the Listing
Agreement with Stock Exchanges and Directives issued by SEBI.
3.6.3 The total number of requests / complaints received by the Bank and the Share Transfer Agents, M/s. MCS Limited,
Mumbai during the year under review was 6687 / 37 respectively.
Position as on 31.03.2014:
Number of requests / complaints not resolved to the satisfaction of the Shareholders is
NIL
Number of complaints pending
NIL
3.7 Share Transfer Committee of Board

The Share Transfer Committee constituted to confirm the share transfers and share transmissions made during the
period of review. The Committee consists of 4 Directors and met three times during the year on the following dates:
22.07.2013
16.01.2014
28.09.2013
Type of Director
No. of Meetings of Share Transfer

Committee
Attended
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Chairman
03
03
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03
Sri N.V.R. Reddy

(01.04.2013 to 28.07.2013)
Member
01
01
Sri K Raghuraman
31.03.2014)
Member
03
03
(16.01.2014 to 31.03.2014)
Member
01
01
The Committee confirmed 749 share transfers aggregating 3,83,200 shares during the year 2013-14. The Bank ensures
that all the transfers are duly effected within a period of 15 days from the date of their lodgment.
The Bank further ensures that complaints are disposed off in a time-bound manner and the complaints which needs enquiry
for final disposal are attended with immediate interim reply / information to the shareholders.
There was no share transfer request pending for more than a fortnight and no shares are pending for transfer as on 31.03.2014.
141
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142
3.8 Remuneration Committee:

The Bank has in terms of Ministry of Finance (MOF) letter no. F20/1/2005-BOI, dated 09.03.2007, constituted a
Remuneration Committee of the Board on 24.03.2007. In terms of MOF letter, the Whole-Time Directors of Public Sector
Banks would be entitled to performance-linked incentives subject to achievement of broad quantitative parameters fixed
for performance evaluation matrix based on the Statement of Intent of Goals and qualitative parameters and bench
marks based on various compliance reports during the last financial year. The basis of evaluation of the quantitative
and qualitative parameters would be the Banks audited financial data as on March 31st of the relevant year.
The Remuneration Committee shall evaluate the performance of the Bank / full-time Directors for deciding the
performance-linked incentives to be paid to the Whole-Time Directors i.e., Chairman & Managing Director and
Executive Directors of the Bank.
The Committee was reconstituted on 14.03.2012. The Committee consists of 4 Directors. The Committee met 1 time
during the year on 31.07.2013.
Type of Director
Number of Remuneration
Committee Meetings
Number of meetings
attended

(30.09.2013 to 31.03.2014)
Chairman
--
--

(01.04.2013 to 29.09.2013)
Chairman
01
01
Sri E.E. Karthak

(13.03.2014 to 31.03.2014)
Member
--
--
Sri K.R. Ananda

(01.04.2013 to 12.03.2014)
Member
01
01

31.03.2014)
Member
01
01

31.03.2014)
Member
01
01
3.9 Nomination Committee of the Board

Nomination Committee of the Board constituted on 30.11.2007 and reconstituted from time to time as per the guidelines.
The Committee was reconstituted on 02.02.2014.
During the period of review, no meeting was held. The Committee consists of the following Members:
1. Sri Anandrao Vishnu Patil, Chairman of the Committee, GOI Nominee Director (30.09.2013 to 31.03.2014)
2. Sri Mohammad Mustafa, Chairman of the Committee, GOI Nominee Director (01.04.2013 to 29.09.2013)
3. Sri Pankaj Chaturvedi, Member, Part-time Non-Official Director (01.04.2013 to 01.02.2014)
4. Sri N.V.R. Reddy, Member, Part-time Non-Official Director (01.04.2013 to 28.07.2013 & 02.02.2014 to 31.03.2014)
5. Dr. Naina Sharma, Member, Part-time Non-Official Director (02.02.2014 to 31.03.2014)
143
3.10 \
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20.04.2013
29.04.2013
20.05.2013
01.06.2013
14.06.2013
26.06.2013
28.06.2013
19.07.2013
02.08.2013
144
3.10 Information Technology Strategy Committee

The IT Strategy Committee has been constituted in terms of guidelines issued by RBI letter no. RBI/2010-11/494DBS.
CO.ITC.BC.NO. 6/31.02.2008/2010-11 for implementation of recommendations issued by Reserve Bank of India in
nine broad areas such as IT governance, Information Security, IS Audit, IT Operations, IT Services Outsourcing, Cyber
Fraud, Business Continuity Planning, Customer Awareness programmes and Legal aspects. During the year the
committee is re-constituted on 16.01.2014 & on 28.03.2014.
The Committee consists of 4 Directors and the General Manager in-charge of IT Department as the Chief Information
Officer. The Committee met three times during the year on the following dates:
24.09.2013
16.01.2014
07.10.2013
Type of Director
No. of Meetings of Information

Technology Strategy Committee
Attended

31.03.2014)
Chairman
03
03
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03
Sri K. Raghuraman
31.03.2014)
Member
03
03
Sri Amit Goel

Part-Time Non-Official Director
(28.03.2014 to 31.03.2014)
Member
--
--
General Manager (IT)
Chief Information Officer
03
03
3.11 Credit Approval Committee

The Credit Approval Committee of the Board was constituted on 02.02.2012 in terms of Gazzette Notification dated
05.12.2011 issued by the Department of Financial Services, Ministry of Finance, Government of India. The Committee
shall exercise powers of the Board with regard to credit proposals:
Upto four hundred crore rupees in case of the category-A Banks having business of three lakh crore rupees or more; or
Upto two hundred fifty crore rupees in case of the other Nationalised Banks;
The credit proposals which exceed the power delegated to the officials of the Nationalised Banks including powers
delegated to the Chairman and Managing Director and the credit proposals being considered by the Management
Committee shall be considered by the Credit Approval Committee subject to the limit specified as above and the
credit proposals which exceed such limits be considered by the Management Committee.
The Committee met 27 times during the year on the following dates:
16.04.2013
20.04.2013
29.04.2013
20.05.2013
01.06.2013
14.06.2013
26.06.2013
28.06.2013
19.07.2013
02.08.2013
145
16.08.2013
21.08.2013
18.12.2013
28.12.2013
08.01.2014
21.01.2014
24.01.2014
30.01.2014
06.02.2014
13.02.2014
21.02.2014
01.03.2014
07.03.2014
15.03.2014
22.03.2014
25.03.2014
27.03.2014
, , \

]

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(13.12.2013 31.03.2014)
15
15

(01.04.2013 31.08.2013)
12
12
..

(01.04.2013 31.03.2014)
27
23
..

(01.04.2013 31.03.2014)
27
26
3.12
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.05.06.2012
06.11.2012 .
31.05.2013
27.12.2013
12.11.2013
, , \

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(13.12.2013 31.03.2014)
01
01

(01.04.2013 31.08.2013)
01
01
..

(01.04.2013 31.03.2014)
03
03
146
16.08.2013
21.08.2013
18.12.2013
28.12.2013
08.01.2014
21.01.2014
24.01.2014
30.01.2014
06.02.2014
13.02.2014
21.02.2014
01.03.2014
07.03.2014
15.03.2014
22.03.2014
25.03.2014
27.03.2014
Type of Director
No. of Meetings of Sub-Committee for

Credit Approval Committee
Attended
Sri C.VR. Rajendran

(13.12.2013 to 31.03.2014)
Chairman
15
15
Sri B.A. Prabhakar

(01.04.2013 to 31.08.2013)
Chairman
12
12
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
27
23
Sri S.K. Kalra,

Executive Director
(01.04.2013 to 31.03.2014)
Member
27
26
3.12 Steering Committee of the Board on Human Resources Management

Board constituted the above committee on 05.06.2012 in terms of Govt. of India directions for implementation of Khandelwal
Committee recommendations for review of long term Manpower planning exercise, Training arrangements for new
competencies and Succession Planning and Leadership development. The Committee was reconstituted on 06.11.2012.
The Committee met three times during the year on the following dates:
31.05.2013
27.12.2013
12.11.2013
Type of Director
No. of Meetings of Steering Committee of

the Board on Human Resources Management
Attended
Sri C.VR. Rajendran

(13.12.2013 to 31.03.2014)
Chairman
01
01
Sri B.A. Prabhakar

(01.04.2013 to 31.08.2013)
Chairman
01
01
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03
147
..

(01.04.2013 31.03.2014)
03
03

(30.09.2013 31.03.2014)
02
- .

(01.04.2013 29.09.2013)
01
01
]..

\ (01.04.2013
31.03.2014)
03
03

\ (01.04.2013
31.03.2014)
03
02
3.13
.28.11.2012

31.05.2013
08.03.2014
24.09.2013
, , \

]

]

(13.12.2013 31.03.2014)
01
01

(01.04.2013 31.08.2013)
01
01
..

(01.04.2013 31.03.2014)
03
03
..

(01.04.2013 31.03.2014)
03
03

(30.09.2013 31.03.2014)
01
01
.

(01.04.2013 29.09.2013)
02
02
148
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03

GOI Nominee Director
(30.09.2013 to 31.03.2014)
Member
02
--

(01.04.2013 to 29.09.2013)
Member
01
01

31.03.2014)
Member
03
03
Sri K. Raghuraman
Government
(01.04.2013 to 31.03.2014)
Member
03
02
3.13 Committee for Monitoring of Recovery in NPAs

Board constituted a Board Level Committee to monitor the progress in recovery in NPAs on regular basis on 28.11.2012
in terms of Ministry of Finance directions.
The Committee met three times during the year on the following dates:
31.05.2013
08.03.2014
24.09.2013
Type of Director
No. of Meetings of Committee for

Monitoring of Recovery in NPAs
Attended
Sri C.VR. Rajendran

(13.12.2013 to 31.03.2014)
Chairman
01
01
Sri B.A. Prabhakar

(01.04.2013 to 31.08.2013)
Chairman
01
01
Sri K.K. Misra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03
Sri S.K. Kalra

Executive Director
(01.04.2013 to 31.03.2014)
Member
03
03

(30.09.2013 to 31.03.2014)
Member
01
01

(01.04.2013 to 29.09.2013)
Member
02
02
149
3.14 :
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150
3.14 Customer Service Committee

In terms of RBI direction vide CSD.PRS No.4 (cir)/20.40.01/2009-10 dated 19th May, 2010, Customer Service
Committee was constituted.
The Committee met on 24.09.2013 to review and deliberate on Customer Service.
Sri K.K.Misra, Executive Director chaired the Committee meeting. All the members had attended the meeting.
The Committee was reconstituted with the following members w.e.f. 16.01.2014:
1. Shri C.VR. Rajendran, Chairman & Managing Director - Chairman of the Committee (13.12.2013 to 31.03.2014)
2. Shri Pankaj Chaturvedi, Part-Time Non-Official Director(CA Category) - Member (01.04.2013 to 31.03.2014)
3. Shri G.R. Sundaravadivel, Director elected from amongst shareholders other than Central Government - Member
(01.04.2013 to 31.03.2014)
4. Shri N.V.R. Reddy, Part-Time Non-Official Director - Member (16.01.2014 to 31.03.2014)
3.15 Other Committees
There are other Functional Committees consisting of Chairman and Managing Director, Executive Directors, General
Managers and Departmental Executives which have been constituted for day-to-day functioning, review and monitoring
of various aspects of business. Some of the important Functional Committees are as under:
1. Asset Liability Committee (ALCO)
2. Operational Risk Management Committee (ORMC)
3. Investment Committee (IC)
4. Risk Based Supervision Committee (RBSC)
5. Credit Risk Management Committee (CRMC)
6. Internal Capital Adequacy Assessment Committee (ICAAP)
The details of these Committees and their functions are mentioned in brief hereunder:
3.15.1 Asset Liability Committee (ALCO)
The following are the members of the Committee:
a. Chairman and Managing Director [Head of the Committee]
b. Executive Directors
c. Chief General Manager
d. General Manager (IRMD/CMRD)
e. General Manager (Corporate Planning)
f.
General Manager (Treasury, Mumbai)
g. AGM/CM/(IRMD)- Convenor
The functions of the Committee are three fold..
(i) Strategic Planning
(ii) Product Pricing and
(iii) Risk Management
1. ALCO is a decision making unit responsible for Balance Sheet planning from Risk Returns perspective, including
the strategic management of the interest rate and liquidity risks;
2. ALCO will monitor implementation of operations within the limits/parameters set by the Board;
3. ALCO articulates the current interest rate view of the bank and accordingly bases its decisions for future business
strategies;
The Committee met 85 times during the period to discuss and decide on various notes submitted by different
Departments of Head Office. Further, the Committee also deliberated and accorded approvals to offer preferential
rates of interest on bulk deposits on day-to-day basis.
151
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09.04.2013
13.09.2013
21.02.2014
15.05.2013
07.12.2013
22.03.2014
25.06.2013
31.01.2014
3.15.3 (.)

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152
3.15.2 Operational Risk Management Committee(ORMC)

d. General Manager (IRMD / CMRD)
e. General Manager (I & A)
f.
General Manager (Operations)
g. General Manager (DIT)

h. General Manager & C V O
The functions of the Committee are as follows:
To review the risk mitigation measures adopted in the bank and to ensure the adequacy of such measures
To ensure adequate resources are assigned to mitigate risks
To review and approve the development and implementation of operational risk methodologies and tools including
assessment, reporting, capital and loss event database
To proactively review and manage potential risks that may arise from regulatory changes or changes in economic/
political environment
To analyze frauds, potential losses, non compliance, breaches etc., and recommend corrective measures to
prevent recurrence of such events.
To promote risk awareness across all business units on a continuing basis
The Committee met eight times during the year on the following dates:
09.04.2013
13.09.2013
21.02.2014
15.05.2013
07.12.2013
22.03.2014
25.06.2013
31.01.2014
3.15.3 Investment Committee (IC)

d. General Manager(Planning)
e. General Manager(Credit)
f.
General Manager (IIB)
g. General Manager (IRMD / CMRD)

The Committee reviews the matters related to strategies to be adopted and provide guidance in the areas of Funds
& Investment.
The Committee reviews the investment transactions undertaken by the bank during the month.
The Committee reviews the existing systems and procedures for suitable modifications etc. on an ongoing basis.
The Committee shall approve/recommend Non-SLR Investments falling within the powers of Executive Directors /
Chairman & Managing Director /Management Committee.
The Committee met daily on all working days except on Saturdays during the period.
153
3.15.4 ] ()

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25.06.2013
07.12.2013
13.09.2013
22.03.2014
3.15.5 ] ()

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16.04.2013
12.09.2013
09.01.2014
15.05.2013
04.10.2013
31.01.2014
21.06.2013
07.12.2013
04.03.2014
154
3.15.4 Risk Based Supervision Committee (RBSC)

d. General Manager (IRMD / CMRD)
e. General Manager (I & A)
f.
General Manager (Operations)
g. General Manager (DIT)

h. General Manager & C V O
The Committee shall monitor the progress in implementing the action points advised by Reserve Bank of India on
the matters of Risk Based Supervision. The review reports on progress shall be placed before the Board at quarterly
intervals like Risk Profiles of the Bank updated on quarterly basis by IRMD, Risk Rating under RBIA and QPR on
RBS and RBIA on quarterly basis.
The Committee met four times during the year on the following dates:
25.06.2013
07.12.2013
13.09.2013
22.03.2014
3.15.5 Credit Risk Management Committee (CRMC)

d. General Manager (Credit)
e. General Manager (IRMD/CMRD)
f.
General Manager (Priority Sector Policy)
g. General Manager (MSME)

h. General Manager (Retail Credit)
i.
Dy.General Manager /Asst. General Manager /Chief Manager(IRMD) Convener
The functions of the Committee are as under:

The Committee is responsible for implementation of the credit risk policies/strategies approved by the Board/Risk
Management Department. The Committee shall prepare the Credit Risk Policy of the Bank, policies/standards for
presentation of credit proposals, financial covenants, rating standards and benchmarks and recommend to Board/
RMC for approval. The Committee also shall decide on the delegation of credit approving powers, prudential limits on
credit exposures, standards for loan collaterals, portfolio management loan review mechanism, risk concentrations,
risk monitoring and evaluation, pricing of loans, provisioning, regulatory/legal compliance, etc
The Committee met nine times during the year on the following dates:
16.04.2013
12.09.2013
09.01.2014
15.05.2013
04.10.2013
31.01.2014
21.06.2013
07.12.2013
04.03.2014
155
3.15.6 ] ()
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23.07.2013
4.
4.1
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22.06.2011
10.00
, , ], ,
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05.07.2012
03.30 , , ], ,
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22.07.2013
04.00 , , - 500 004

]
4.2
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11.00
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, 8-3-987/2,
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7,45,80,366

3,00,34,539

5.1
] ] ]
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\
\ ^ 49(v)
156
3.15.6 Internal Capital Adequacy Assessment Committee (ICAAP)

The Executive level Committee of ICAAP shall scrutinize the assessment made in the ICAAP document and suggest
modifications/changes, if any, to the document. The Committee shall then recommend the ICAAP document to be
placed before the Chairman & Managing Director and thereafter to the Board for approval.
The members of the Committee are as follows:
a. Chairman & Managing Director
c. General Manger (IRMD)
d. General Manager (Credit)
e. General Manager (Central Accounts Department)
f.
General Manager (CMRD)
g. General Manager (Corporate Planning)

h. General Manager (Treasury, Mumbai)
i.
General Manager (Dept. of Information and Technology)
j.
General Manager (Personnel)
k. General Manager (Operations)

The Committee met one time on 23.07.2013 during the year.
4.
General Body Meetings
4.1 Annual General Meeting

The details of previous three Annual General Meetings (AGM) of shareholders are as follows:
General Body
Meeting
Date
Time
Venue
Eleventh AGM
22.06.2011
10.00 AM
Shilpakala Vedika, Shilparamam, Crafts Village, Near HiTechCity,

Madhapur, Hyderabad 500 081
Twelfth AGM
05.07.2012
03.30 PM
Shilpakala Vedika, Shilparamam, Crafts Village, Near HiTechCity,

Thirteenth AGM
22.07.2013
04.00 PM
Ravindra Bharathi, Saifabad, Hyderabad500004
No Special Resolution was passed in the previous three Annual General Meetings stated above.
No Special Resolution was passed through postal ballot during the previous three years.
4.2 Extraordinary General Meeting
The details of Extraordinary General Meeting of the shareholders held during the last 3 years are as follows:
Date
23.03.2011
19.12.2013
Time
Venue
Purpose
10.30 AM
Shilpakala Vedika, Shilparamam,

Crafts Village, Near HiTech City,
To issue and allot 7,45,80,366 equity shares

to Government of India on preferential basis
11.00 AM
Sri Sathya Sai Nigamagamam,

8-3-987/2, Sri Nagar Colony,
Hyderabad 500 073.
To issue and allot 3,00,34,539 equity shares

to Government of India on preferential basis
5.1. Material Disclosures

The Bank had complied with all the requirements regarding Capital Market related matters and no penalty has been
imposed by the Stock Exchanges or SEBI or any other Statutory Authority for non-compliance of any law, guidelines
and directives during the last three years. The related party transactions of the Bank are disclosed in the Notes on
Accounts, Schedule of the Balance Sheet as on 31.03.2014 as per Accounting Standards-18 issued by the Institute of
Chartered Accountants of India, New Delhi.
The Directors and Senior Management personnel affirm by the Model Code of Conduct framed by the Bank and the
same is posted on the website.
The Certificate of CEO & CFO under Clause 49(v) of the Listing Agreement is enclosed to the Corporate Governance Report.
157
\ .
1.
375
2. ]
200
3. .
800
.
5.2 2013-14 *
( )

..
2012-13
--
]
518271
-
(13.12.2013 31.03.2014)

742594
-2012-13
600000

(01.04.2013 31.08.2013)
..
1556814
-2012-13
40000

(01.04.2013 31.03.2014)
..
1511445
-2012-13
195080

(01.04.2013 31.03.2014)
]
--2012-13
167680

(01.04.2012 31.08.2012)

611709
30000
2012-13
- \
(25.11.2013 31.03.2014)
]
630903
10000
2012-13
- \
(01.04.2013 10.05.2013)
]
200840
45000
2012-13
- \
(01.04.2013 03.08.2013)
6. \
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158
The number of shares held by Non-Executive Directors is furnished below:

1. Sri K Raghuraman
375 shares
2. Sri G R Sundaravadivel
200 shares
3. Prof. Nandlal L Sarda
800 shares
All other Non-Executive Directors do not hold any equity shares of the Bank.
5.2 Details of remuneration paid to the Directors for the Financial year 2013-14
(Amount in Rupees)
Salary
Sitting Fees
Sri C. VR. Rajendran

(13.12.2013 to 31.03.2014)
518271
--
2012-13
--
Sri B. A. Prabhakar
(01.04.2013 to 31.08.2013)
742594
--
2012-13
600000
Sri K. K. Misra
Executive Director
(01.04.2013 to 31.03.2014)
1556814
--
2012-13
400000
Sri S. K. Kalra
Executive Director
(01.04.2013 to 31.03.2014)
1511445
--
2012-13
195080
Sri A. A. Taj
Executive Director
(01.04.2012 to 31.08.2012)
--
--
2012-13
167680
(25.11.2013 to 31.03.2014)
611709
30000
2012-13
--
Sri Manoranjan Das

(01.04.2013 to 10.05.2013)
630903
10000
2012-13
--

(01.04.2013 to 03.08.2013)
200840
45000
2012-13
--
6.
Performance based Incentive

Period FY
Amount
Means of Communication
Quarterly financial results are submitted to the Stock Exchanges where the shares of the Bank are listed within the
stipulated time frame.
The Bank strongly believes that all stakeholders should have access to complete information on different
activities, performance and product initiatives. Annual, half yearly and quarterly results of the Bank for the year
2013-14 were published in the leading newspapers. The results were also made available on the Banks website
www.andhrabank.in. The soft-copy of the Annual Report is sent to such shareholders of the Bank whose e-mail ids are
registered and to the rest of shareholders, physical copies are sent by post. Further, the Annual Report is also available
at the Banks website. Every year, after the annual, half yearly and quarterly results are declared, a Press Meet is held
on the same day in which the Chairman & Managing Director answers to the queries of the Media. The Chairman &
Managing Director, Executive Directors and other top functionaries, in the course of their visits to other centers in India
as well as abroad, undertake one to one meeting with the Fund Managers as well as Press personally and appraise
them about the performance of the Bank. The following newspapers mainly cover the Financial Results and Notices:
English
Business Line, The Economic Times, Business Standard, Financial Express, Mint, Hindu,Times of India,
The New Indian Express, Metro India, Hans India, New Swatantra Times, Focus News and Midnight Reporter
Telugu
Eenadu, Andhra Jyothi, Vaartha, Saakshi, Namaste Telangana, Praja Sakthi, Krishna Patrika,
Vishalandhra, Navya Prajapatham and Andhra Prabha
Hindi
Hindi Milap, Dainik Bhaskar, Focus News and Midnight Reporter
159
7.
]
\ ] ] 31.03.2014 2114 , 1850 23
\
] \ . \]
532418
25 , ] ]]
/ ANDBKDM
,
- 400 001.
. \] ,
/ ANDHRABANK
\] ],
,
, - 400 051
31.03.2014
8.1
\
] () ] () ()
.
- INE434A01013
- INE434A01013
\ 31, 2014 2,22,746 35,211 1,87,535
58,96,14,903 35,46,14,903 23,50,00,000 ]
31 \ 2014 ] ( ) 97.18% 2.82%
8.2
] 15
] ] ]
] ]
, ] ],
, ] ], ] ]
]

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

\/\//
] ]
\

,
. ,
5-9-11, , 500004.
040 - 23230883, 040 - 23252371
mbd@andhrabank.co.in
160
7.
Shareholders Information
The Bank is a Scheduled Commercial Bank with the Head Office situated at Hyderabad. The Bank has its presence in
2114 branches, 1850 ATMs and 23 Zonal Offices as on 31.03.2014.
The Banks shares are listed on the following Stock Exchanges:
a.
Bombay Stock Exchange Limited

25th Floor, Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai 400 001.
Symbol: 532418
Stock Code/System: ANDBKDM
b.
The National Stock Exchange of India Ltd.

Exchange Plaza
Bandra Kurla Complex
Bandra East, Mumbai 400 051.
Stock Code/ Symbol:ANDHRABANK
The annual listing fee has been paid till 31.03.2014.

8.1 Dematerialisation of Securities
The shares of the bank are under compulsory demat list of SEBI and the Bank is a member of the Depository Services
with National Security Depository Ltd (NSDL) and Central Depository Services ( India ) Ltd (CDSL) as an issuer
company for dematerialisation of Banks shares. Shareholders can get their shares dematerialized with either NSDL
or CDSL. The Depository services have allotted the following ISIN numbers to the bank.
NSDL
CDSL
-- INE434A01013
-- INE434A01013
As on March 31, 2014, out of 2,22,746 shareholders of the Bank 35,211 shareholders hold the shares of the Bank
under physical mode and 1,87,535 shareholders hold the shares in demat form. Out of the total equity shares
of 58,96,14,903 of the Bank, 35,46,14,903 equity shares are held by the Government of India and the remaining
23,50,00,000 are held by the public. As on 31st March, 2014, the public shareholding (incl. Govt. of India) in Electronic
Form is 97.18% and 2.82% is in physical form.
8.2 Share Transfer System and Redressal of Investors Grievances
The Bank ensures that all transfers are duly effected within the period of 15 days from the date of their lodgment. The
Board has constituted a Share Transfer Committee for confirmation of the Transfers, which meets at regular intervals.
The Registrars & Share Transfer Agents undertake the process of transfers within the stipulated statutory period which
is confirmed by the Share Transfer Committee.
Share Transfers, Dividend Payments and all other investor related activities are attended to and processed at the
Office of the Registrars and Share Transfer Agents, M/S.MCS Limited, Mumbai. The Shareholders may lodge the
transfer deeds and any other documents, grievances and complaints at the following address of the Registrars and
Share Transfer Agents:
M/s. MCS LIMITED
Unit: Andhra Bank
KASHIRAM JAMNADAS BLDG.,
OFFICE NO.21/22 GROUND FLOOR
5, P.DMELLO ROAD, (GHADIYAL GODI)
MUMBAI - 400 009.
Ph. No. 022-23726253 to 56
Contact Person: Mr.Uday Mogaveera
The Bank also undertakes the investor services in Merchant Banking Division at Head Office of the Bank. Any
communication / correspondence /grievances/ complaints can be sent to the following address for redressal:
The Company Secretary
Investor Services Section
Andhra Bank
Dr.Pattabhi Bhavan, Head Office
5-9-11, Saifabad
Hyderabad 500 004.
Fax. 040-23230883; Tel:040-23252371
E-mail id: mbd@andhrabank.co.in
161
8.3
, ], 25.03.2010
183 27,279

2013-14 2383
19,571
]
9.
9.1
\ .
,
, 18 ], 2014 - 2.30 ] , , 8-3-987/2, ,

-500 073
9.2 ()

] , 2014
- ] 2014
30 2014
- 2014
31 2014
- ] 2015
31 \ 2015
- - 2015
9.3
2013-14 . 1.10 (11%)
9.4 - (.].. ) - 15.07.2014 17.07.2014 ( )
10.1 31.03.2014
01

1
354614903
60.14
02
]
218979
85470329
14.50
03
/
1676
2108165
0.36
04

1887
13876331
2.35
05
\
14
600405
0.10
06
/ /
45
63623894
10.79
07

102
68000344
11.53
08
42
1320532
0.23
222746
589614903
100.00
31 \ 2014 11.89 % (31 \ 2013 13.49%) ] ] 20%

31.03.2014
31.03.2013

1.

102
68000344
106
74393500
2.
/
1676
2108165
1378
1111410
1778
70108509
1484
75504910
162
8.3 Opening of an ESCROW Account

The Bank has opened an ESCROW Account with Andhra Bank Centralised DP Branch, Somajiguda, Hyderabad and
on 25.03.2010 transferred the unclaimed shares of the shareholders who have participated in our Follow-on Public
Offer. 27,279 unclaimed shares pertaining to 183 shareholders were transferred to the above Escrow Account.
During the year 2013-14, 2383 equity shares were transferred from the Escrow account to the shareholders demat
accounts on their request. The number of unclaimed shares outstanding in the Suspense account are 19,571 shares
The voting rights on these unclaimed shares shall remain frozen till the rightful owner of such shares claims the shares.
9.
Financial Calendar
9.1 Annual General Meeting of the Shareholders:

Particulars of the Fourteenth Annual General Meeting of shareholders of the Bank:
Date, Time & Venue of the AGM
Friday, 18th July, 2014 at 2.30 p.m. at Sri Sathya Sai Nigamagamam, 8-3-987/2,
Sri Nagar Colony, Hyderabad-500 073.
9.2 Financial Calendar (Tentative)

Approval of quarterly results for the period ending:
June 30, 2014
End of July, 2014
September 30, 2014
End of October, 2014
December 31, 2014
End of January, 2015
March 31, 2015
Audited Annual Accounts April, 2015
9.3 Dividend payment

The Bank has paid interim dividend @ Rs.1.10 paise (11%) per share for the Financial Year 2013-14.
9.4 Date of Book Closure (AGM)
Book closure 15.7.2014 to 17.7.2014 (both days inclusive).
10.1 SHARE HOLDING PATTERN AS ON 31.03.2014
Sl.
No.
Category
No. of Holders
No. of Shares
% to Shares
354614903
60.14
218979
85470329
14.50
01
Government of India
02
General Public
03
NRIs / OCBs
1676
2108165
0.36
04
Private Corporate Bodies
1887
13876331
2.35
05
Mutual Funds & UTI
14
600405
0.10
06
Banks / Financial Institutions / Insurance Cos.
45
63623894
10.79
07
Foreign Institutional Investors
102
68000344
11.53
08
Others
42
1320532
0.23
222746
589614903
100.00
TOTAL
The total foreign shareholding as on 31st March, 2014 was 11.89% (13.49% as on 31st March, 2013) as under, which is
within the stipulated level of 20% of the paid up capital of the bank:
Sl. No Category
As on 31.03.2014
No. of
shareholders
1.
Foreign Institutional Investors
2.
No. of
shares
As on 31.03.2013
No. of
shareholders
No. of
shares
102
680003440
106
74393500
NRIs / OCBs
1676
2108165
1378
1111410
Total
1778
70108509
1484
75504910
163
10.2 ]/ / ] .
31.03.2014 \
..
01

02
] ( 33 ] )
03
] .- -
04
\ ]
05
] ]
11. 31.03.2014
%
5000
188573
84.6583
5001 10000
20819
9.3465
10001 20000
8180
3.6723
20001 30000
2125
0.9540
30001 40000
744
0.3340
40001 50000
636
0.2855
50001 - 100000
854
0.3834
100001 - 500000
614
0.2757
500001 - 1000000
76
0.0341

125
0.0561
222746
100.0000
12. ] (- \)
]

1

88185
\
164
615
^
2732
\[
595
9530
]
12583
2532
\
190
]
257
14681
4458

3832
29259
4
{
111
4
164

60.1435
9.1516
5.3747
1.1382
0.5937

319311010
172297220
116154620
53005330
26611140
29856200
62510470
122742860
52992290
4940667890
5896149030

354614903
38512487
199243
190433
812524
477244
6344550
4145478
1009793
60157
67878
5189266
1624373
1387112
149811593
3600
180267
610

354614903
53959304
31689755
6710729
3500744
%
5.4156
2.9222
1.9700
0.8990
0.4513
0.5064
1.0602
2.0817
0.8988
83.7948
100.0000

60.1435
6.5318
0.0338
0.0323
0.1378
0.0809
1.0760
0.7031
0.1713
0.0102
0.0115
0.8801
0.2755
0.2353
25.4084
0.0006
0.0306
0.0001
10.2 Bank has not issued any GDRs/ADRs/Warrants or any convertible instruments
Top 5 shareholders of the Bank as on 31.03.2014
Sl.No
Name of the Investor
Percentage of
total holding
Total number of
shares
01
Government of India
60.1435
354614903
02
Life Insurance Corporation of India (incl other 33 schemes)
9.1516
53959304
03
Genesis Indian Investment Company Limited General Sub Fund
5.3747
31689755
04
HDFC Standard Life Insurance Company Limited
1.1382
6710729
05
GMO Emerging Markets Fund
0.5937
3500744
11. DISTRIBUTION OF SHAREHOLDERS CATEGORY WISE AS ON 31-03-2014

SHARE HOLDERS
SHARE AMOUNT
Nominal Value
Holders
Amount
Upto 5000
188573
84.6583
319311010
5.4156
5001 - 10000
20819
9.3465
172297220
2.9222
10001 - 20000
8180
3.6723
116154620
1.9700
20001 - 30000
2125
0.9540
53005330
0.8990
30001 - 40000
744
0.3340
26611140
0.4513
40001 - 50000
636
0.2855
29856200
0.5064
50001 - 100000
854
0.3834
62510470
1.0602
100001 - 500000
614
0.2757
122742860
2.0817
500001 - 1000000
76
0.0341
52992290
0.8988
125
0.0561
4940667890
83.7948
222746
100.0000
5896149030
100.0000
1000001 and Above

Total
12. STATE WISE SHAREHOLDING DISTRIBUTION (PINCODE-WISE LIST) AS ON 31.03.2014

NAME OF THE STATE
GOVERNMENT OF INDIA
ANDHRA PRADESH
ARUNACHAL PRADESH
ASSAM
BIHAR & JHARKAND
CHANDIGARH
DELHI
NO OF HOLDERS
NO. OF SHARES HELD
% OF HOLDING
354614903
60.1435
88185
38512487
6.5318
164
199243
0.0338
615
190433
0.0323
2732
812524
0.1378
595
477244
0.0809
9530
6344550
1.0760
GUJARAT
12583
4145478
0.7031
HARYANA
2532
1009793
0.1713
HIMACHAL PRADESH
190
60157
0.0102
JAMMU & KASHMIR
257
67878
0.0115
KARNATAKA
KERALA
MADHYA PRADESH
MAHARASHTRA
MEGHALAYA
MIZORAM
NAGALAND
14681
5189266
0.8801
4458
1624373
0.2755
3832
1387112
0.2353
29259
149811593
25.4084
3600
0.0006
111
180267
0.0306
610
0.0001
165

5374
1740962
0.2953
]
1529
690940
0.1172
]
4137
153475
0.0260
18447
7287496
1.2360
164
199243
0.0338

7541
2604797
0.4418

10086
7867796
1.3344
217011
585176220
99.2473
5735
4438683
0.7527

222746
589614903
100.0000
(*) /
13. , ]
\]
\],
\\
\\
2013
99.75
88.50
25248223
99.85
88.65
3222385
2013
94.40
85.25
29979333
98.00
85.35
4451362
] 2013
90.20
78.00
19700765
90.15
78.15
2442839
] 2013
87.50
62.90
30062962
87.50
62.85
4014342
2013
65.40
49.25
33390692
65.30
49.25
4688646
2013
58.50
47.15
52720473
58.90
47.30
7276369
2013
59.00
51.50
38943538
59.10
51.50
5543376
2013
71.80
58.15
66379882
71.65
58.30
10807082
2013
64.90
58.00
28361614
64.50
58.10
3348928
] 2014
67.25
53.70
37917676
67.20
54.00
4202874
2014
57.35
53.50
22354074
57.95
53.50
2907622
\ 2014
66.90
55.15
30935347
66.80
55.15
4371654

415994579
57277479
\ ( ) \

31 \ 2014 \], \] . 63.95

166
ORISSA
5374
1740962
0.2953
PUNJAB
1529
690940
0.1172
RAJASTHAN
4137
153475
0.0260
TAMIL NADU
18447
7287496
1.2360
TRIPURA
UTTAR PRADESH
WEST BENGAL
TOTAL:
199243
0.0338
2604797
0.4418
10086
7867796
1.3344
217011
585176220
99.2473
OTHERS:
GRAND TOTAL:
164
7541
5735
4438683
0.7527
222746
589614903
100.0000
(*) includes FII / NRI shareholders, having correspondent offices in Mumbai

13 SHARE PRICE, VOLUME OF SHARES TRADED ON STOCK EXCHANGES
Period
National Stock Exchange
Stock Exchange, Mumbai
Date
High
Low
Volume
High
Low
Volume
April 2013
99.75
88.50
25248223
99.85
88.65
3222385
May 2013
94.40
85.25
29979333
98.00
85.35
4451362
June 2013
90.20
78.00
19700765
90.15
78.15
2442839
July 2013
87.50
62.90
30062962
87.50
62.85
4014342
August 2013
65.40
49.25
33390692
65.30
49.25
4688646
September 2013
58.50
47.15
52720473
58.90
47.30
7276369
October 2013
59.00
51.50
38943538
59.10
51.50
5543376
November 2013
71.80
58.15
66379882
71.65
58.30
10807082
December 2013
64.90
58.00
28361614
64.50
58.10
3348928
January 2014
67.25
53.70
37917676
67.20
54.00
4202874
February 2014
57.35
53.50
22354074
57.95
53.50
2907622
March 2014
66.90
55.15
30935347
66.80
55.15
4371654
TOTAL VOLUME
415994579
57277479
Performance of Banks share price on NSE and BSE in comparison with the movement of Bank NIFTY (as on the
last day of every month) is shown here below:
The Banks share price as on 31st March, 2014 closed at Rs.63.95 p. on the National Stock Exchange, Mumbai and on the
Bombay Stock Exchange Limited.
167
14.
2011-12
2012-13
2013-14
(.)
10/10/10/31 \ ] - (.)
119.15
94.65
63.95
(.)
24.03
23.04
7.67
(.)
5.50
5.00
1.10*
(.)
126.36
146.11
145.57
- ( %)
22.89%
21.70%
14.89%
(*) 31.01.2014 . 1.10
15. \
-/ 2000 -50
/ .
16.

, ] ( ] ) 1980 ( )
2003 ] , ] .
] 09.03.2007
.
]
\ ]
] 01.11.2007 ]
] ]
168
14. Per Share Data

2011-12
Face Value (`)
2012-13
2013-14
10/-
10/-
10/-
119.15
94.65
63.95
Earnings (`)
24.03
23.04
7.67
Dividend (`)
5.50
5.00
1.10*
Market Quotation as on 31st March NSE (`)
Book Value (`)

Dividend payout (% of Net Profit)
126.36
146.11
145.57
22.89%
21.70%
14.89%
(*) Interim dividend @ ` 1.10 p. per share paid on 31.01.2014

15. Liquidity
Andhra Bank scrip belongs to Group A/S&P BSE 200 in BSE and NIFTY Midcap-50 in NSE. The fair volume of trading
provides enough entry/exit opportunities to the shareholders.
16. Non-Mandatory Requirements
The Bank has an Executive Chairman appointed by the Government. Hence, maintaining of an Office of a Non Executive Chairman does not arise. The tenure of the Independent Directors is determined by the Government,
excepting the tenure of the Shareholder Directors which is determined in accordance with the provisions of the Banking
Companies (Acquisition & Transfer of Undertaking) Act, 1980 read with the Andhra Bank (Shares and Meetings) General
Regulations, 2003.
The remuneration of the Executive Directors is determined in terms of the Government guidelines. There is a
Remuneration Committee constituted in terms of Government directive dated 09.03.2007.
The Bank has not sent half yearly declaration of financial performance to the shareholders.
The Independent Directors are appointed by the Government excepting the Shareholder Directors, who are elected by
the shareholders. There is a Nomination Committee constituted in terms of directives issued by Reserve Bank of India
dated 01.11.2007.
The Bank has in place a Whistle Blower Policy and the Independent Directors are sent for training.
169
( \] \ ^ 49(v) )

, ,
] () 31 \, 2014 - ]

i. ]
]
ii. \ \ ,

() ] , - \

() - ]
]\ ,
\ ] , , ] , \
\
() - - \ i.
ii. \
iii. , ] ,
\ ,
/( \)
()

/( ])

09.05.2014
170
CERTIFICATE
(Pursuant to Clause 49(V) of the Listing Agreement with the Stock Exchanges)
The Board of Directors

ANDHRA BANK
Head Office, Hyderabad.
This is to certify that..
(a)
The financial statements and the cash flow statement for the year ended 31st March, 2014 have been reviewed and
that to the best of our knowledge and belief;
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(ii) these statements together present a true and fair view of the banks affairs and are in compliance with the
existing accounting standards, applicable laws and regulations;
(b)
There are, to the best of our knowledge and belief, no transactions entered into by the bank during the year which
are fraudulent, illegal or violative of the banks code of conduct.
(c)
We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have
disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls,
if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d)
We have indicated to the auditors and the Audit Committee

(i) significant changes in internal control over Financial reporting during the year;
(ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes
to the financial statements;
AND
(iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Banks internal control system over financial
reporting.
Place :
Hyderabad
Date
09.05.2014
sd/-
sd/-
(TVS Chandrasekhar)
(C. VR. Rajendran)
General Manager (Accounts)

& Chief Financial Officer
171

31 \ 2014 ] \] \
49 , ] , ]\ .
] ]\
, - .
]
\ ,] ,
.

.

-004453
/( )
^ (..028224)

-004137
/( )
^ (.. 205869)

-310100
/( )
^ (.. 208606)

-108959
/( )
^ (.. 104659)

-312063
/( )
^ (..050395)

09.05.2014
172
CERTIFICATE
To
The Members of Andhra Bank
We have examined the compliance of conditions of Corporate Governance by Andhra Bank, for the year ended 31st
March, 2014, as stipulated in Clause 49 of the Listing Agreement of the said Bank with Stock Exchanges i.e., Bombay
Stock Exchange Limited and the National Stock Exchange of India Limited as far as applicable to the Nationalised
Banks.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was
limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of
the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank.
In our opinion and to the best of our information and according to the explanations given to us, subject to what is stated
above:
We certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the above-mentioned
Listing Agreement, to the extent applicable to the Nationalised Banks.
We state that no investor grievance is pending for a period exceeding one month, against the Bank as per the record,
maintained by the Bank
We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or
effectiveness with which the management has conducted the affairs of the Bank.
For UMAMAHESWARA RAO & CO
Chartered Accountants
FRN-004453S
For R.SUBRAMANIAN AND COMPANY

FRN-004137S
Sd/(CA L.Shyama Prasad)

Partner (M. No. 028224)
Sd/(CA R. Prakash)
For PATRO & CO

FRN-310100E
For C.R.SAGDEO & CO

FRN-108959W
Sd/(CA P. Venkateswara Rao)

Sd/(CA Anoop C Sagdeo)

For NAG & ASSOCIATES

FRN- 312063E
Sd/(CA Praday Kumar Pal)
Place
Hyderabad
Date
09.05.2014
173
31 \, 2014 BALANCE SHEET AS ON 31.03.2014

PARTICULARS
SOURCE OF FUNDS
] Capital
~ Reserves & Surplus
] Deposits
Borrowings
Other Liabilities & Provisions
TOTAL
] APPLICATION OF FUNDS
Cash and Balances with RBI
\ Balances with Banks
and money at call and Short Notice
Investments
Advances
\ Fixed Assets
Other Assets
TOTAL
Contingent Liabilities
Bills for Collection
Significant Accounting Policies
Notes on Accounts
(` ] ) (` in `000)
31.03.2014 31.03.2013
AS ON 31.03.2014
AS ON 31.03.2013
1
2
3
4
5
589,61,49
8147,83,62
141845,12,38
13185,09,44
3573,25,58
167340,92,51
559,58,04
7881,60,30
123795,58,09
11119,33,89
2942,84,10
146298,94,42
7912,05,82
6022,13,60
7
8
9
10
11
1528,54,03
45356,62,13
107644,20,02
433,92,54
4465,57,97
167340,92,51
40572,96,22
5294,45,31
383,73,11
37632,39,68
98373,30,10
303,48,14
3583,89,79
146298,94,42
28276,90,08
4328,67,19
SCHEDULE NO.
12
17
18
\ .
The Schedules referred to above form an integral part of Balance Sheet.
..]

] \
..
.
. . .

004453
( )
(.. 028224)
:
: 09.05.2014
.

... \

.
.

:004137
( .)
(.. 205869)

:108959
( )
(.. 104659)

:312063
( )
(.. 050395)
174

: 310100
( . )
(.. 208606)
31 \, 2014 PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2014
PARTICULARS
31.03.2014
YEAR ENDED 31.03.2014
YEAR ENDED 31.03.2013
13
14
14297,31,50
1332,84,30
15630,15,80
12909,69,21
1047,42,37
13957,11,58
15
16
10559,98,11
2309,93,52
9152,67,42
2037,20,88
TOTAL EXPENDITURE
Net Profit for the year
2324,66,46
15194,58,09
435,57,71
1478,09,96
12667,98,26
1289,13,32
98,00,00
99,06,59
533,57,71
1388,19,91
INCOME
\ ] Interest Earned
Other Income
EXPENDITURE
] Interest Expended
\ Operating Expenses

Provisions and Contingencies
SCHEDULE NO
(` ] ) (` in `000)
31.03.2013
TOTAL INCOME
Profit Brought forward

TOTAL
] APPROPRIATIONS
Transfer to Statutory Reserve

108,89,43
322,28,33
] Transfer to Capital Reserve
2,64,00
11,38,00
] Transfer to Revenue & Other Reserves
95,00,00
319,19,53
195,00,00
310,00,00
Interim Dividend Paid
64,85,76
279,79,02
Dividend Tax Paid
11,02,26
47,55,03
] Balance carried over to Balance Sheet
56,16,26
98,00,00
TOTAL
533,57,71
1388,19,91
( ) ` Earning per share (Basic and diluted) `
7.67
23.04
\ . The schedules refer to above form an integral part of profit & loss Account.
S.K.KALRA
Executive Director
C.VR.RAJENDRAN
Directors
PANKAJ CHATURVEDI E.E.KARTHAK
K.THAMARAISELVAN
N.V.R.REDDY
AMIT GOEL
ANANDRAO VISHNU PATIL

K.RAGHURAMAN
T.V.S. CHANDRASEKHAR
General Manager
Y. AMARNATH
Deputy General Manager
V. SATYANARAYANA
Chief Manager
As per our report of even date

FOR UMAMAHESWARA RAO & CO
FRN:004453S
FOR R SUBRAMANIAN AND COMPANY

FRN:004137S
FOR PATRO & CO

FRN:310100E
(CA L.SHYAMA PRASAD)

Partner (M.NO. 028224)
(CA R.PRAKASH)
(CA P.VENKATESWARA RAO)

Place : Hyderabad
Date : 09.05.2014
FOR C R SAGDEO & CO

FRN:108959W
FOR NAG & ASSOCIATES

FRN:312063E
(CA ANOOP C SAGDEO)

Partner (M.NO.104659)
(CA PRADAY KUMAR PAL)

Partner (M.NO.050395)
175
- \ SCHEDULES FORMING PART OF BALANCE SHEET

PARTICULARS
\ SCHEDULE-1:: ] CAPITAL
I. ] Authorised Capital
10/- 300,00,00,000
300,00,00,000 Equity Shares of Rs.10/- each
II.], , Issued, Subscribed, Called up and Paid up
10/- 58,96,14,903 ( 55,95,80,364 )
( 35,46,14,903 )
( 32,45,80,364 )
58,96,14,903 Equity Shares of `10/- each (Previous year 55,95,80,364
Equity Shares) [Including 35,46,14,903 Equity Shares (Previous year
32,45,80,364 Equity Shares) held by Central Government]
\ -I TOTAL SCHEDULE - 1
\ SCHEDULE- 2 : RESERVES AND SURPLUS
I. Statutory Reserve
Opening Balance
] Addition during the year
TOTAL - I
II.] Capital Reserve
Opening Balance
TOTAL - II
III. Share Primium
Opening Balance
TOTAL - III
IV. ] Revenue Reserve
Opening Balance
- ] Less: Adjustments (refer to point no. 6.2 of Notes on Accounts)
TOTAL - IV
V. 36 (1) (viii)
Special Reserve U/S 36(1)(viii) of IT Act
Opening Balance
- Less: Deductions
TOTAL - V
Balance in Profit & Loss Account
\ TOTAL SCHEDULE - 2
176
(` ] ) (` in `000)
31.03.2014
AS ON 31.03.2014
31.03.2013
AS ON 31.03.2013
3000,00,00
3000,00,00
589,61,49
589,61,49
559,58,04
559,58,04
2348,45,12
108,89,43
2457,34,55
2026,16,79
322,28,33
2348,45,12
359,38,71
2,64,00
362,02,71
348,00,71
11,38,00
359,38,71
1778,41,96
169,96,55
1948,38,51
1778,41,96
1778,41,96
2522,34,51
95,00,00
263,42,92
2353,91,59
2203,14,98
319,19,53
2522,34,51
775,00,00
195,00,00
970,00,00
56,16,26
8147,83,62
465,00,00
310,00,00
775,00,00
98,00,00
7881,60,30

(` ] ) (` in `000)
PARTICULARS
31.03.2014
AS ON 31.03.2014
31.03.2013
AS ON 31.03.2013
27,09,59
37,91,06
) ii) From Others
7466,07,04
6990,71,58
TOTAL
7493,16,63
7028,62,64
) ii) From Others
27692,78,01
24730,25,86
TOTAL
27692,78,01
24730,25,86
3,05,71
43,76,35
) ii) From Others
106656,12,03
91992,93,24
TOTAL
106659,17,74
92036,69,59
TOTAL-I
141845,12,38
123795,58,09
II-. ] II-A. Deposits of Branches in India
141845,12,38
123795,58,09
TOTAL-II
141845,12,38
123795,58,09
141845,12,38
123795,58,09
6396,00,00
3341,15,00
1702,02,69
1837,65,59
) 7.25% 111 a) 7.25% 111 Months Bonds
200,00,00
200,00,00
) 9.15% 124 b) 9.15% 124 Months Bonds
700,00,00
700,00,00
) 11.00% 120 c) 11.00% 120 Months Bonds
600,00,00
600,00,00
) 8.55% 120 d) 8.55% 120 Months Bonds
320,00,00
320,00,00
) e) Innovative prepetual Debt Bonds
200,00,00
200,00,00
1000,00,00
1000,00,00
11118,02,69
8198,80,59
2067,06,75
2920,53,30
13185,09,44
11119,33,89
\ SCHEDULE- 3 :: ] DEPOSITS
I-. ] I-A. Demand Deposits
) i) From Banks
I-. \ ] I-B.Saving Bank Deposits

) i)From Banks
I-. ] I-C Term Deposits

) i) From Banks
II-. ] II-B. Deposits of Branches outside India
\ SCHEDULE - 4 :: BORROWINGS
I. Borrowings in India
) { i) From Reserve Bank of India
) ii) From other Banks
) ] iii) Other Institutions and Agencies
iv) Subordinated Debts
\) \\ II f) Upper Tier II Bonds

] SUB-TOTAL(i, ii, iii, iv)
II. Borrowings outside India
177

(` ] ) (` in `000)
PARTICULARS
31.03.2014
AS ON 31.03.2014
31.03.2013
AS ON 31.03.2013
\ SCHEDULE - 5 ::
OTHER LIABILITIES AND PROVISIONS
I. Bills Payable
II. ] () Inter office Adjustments (Net)
III.\ ] Interest Accrued
IV.
Contingent Provisions against Standard Assets
V. Deferred Tax Liability
VI. ( ) Others (Including Provisions)
649,35,85
238,09,41
647,21,83
116,73,20
780,50,00
384,66,25
1520,64,07
583,50,00
54,24,00
1541,15,07
3573,25,58
2942,84,10
\ SCHEDULE - 6 :: {
CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. ( ) Cash in hand (Including Foreign Currency Notes)
II. { Balance with Reserve Bank of India
) \ i) In current Accounts
) ii) In other Accounts
511,56,61
634,06,67
7400,49,21
-
5388,06,93
-
7912,05,82
6022,13,60
I. In India
i). Balances with Banks
).\ a) In current Accounts
). b) In other Accounts
39,41,99
1218,56,14
129,08,16
50,00,00
TOTAL
1257,98,13
179,08,16
ii) \ Money at Call and Short Notice

) a) With Banks
) b) With Other Institutions
TOTAL
1257,98,13
179,08,16
II. Outside India

).\ i) In Current Accounts
). ] ii) In Other Deposit Accounts
). \ iii) Money at Call and Short Notice
270,55,90
-
204,64,95
-
TOTAL - II
270,55,90
204,64,95
1528,54,03
383,73,11
\ SCHEDULE - 7 :: \
BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
TOTAL - I
178

(` ] ) (` in `000)
PARTICULARS
\ SCHEDULE - 8 :: INVESTMENTS
I. Invetments in India
) i) Government Securities
) ii) Other Approved Securities
) iii) Shares
) \ iv) Debentures and Bonds
) /
v) Subsidiaries and/ or Joint Ventures
\) vi) Others
TOTAL - I
31.03.2014
AS ON 31.03.2014
31.03.2013
AS ON 31.03.2013
39932,36,63
293,71,37
3245,19,47
32973,61,70
8,16,45
326,42,59
1338,80,13
173,50,48
1573,11,76
173,50,48
2678,11,66
45217,89,71
37498,63,01
II. Investments Outside India

) i) Government Securities
) ii) Other Approved Securities
) iii) Shares
) \ iv) Debentures and Bonds
) /
v) Subsidiaries and/ or Joint Ventures
\) vi) Others
138,72,42
-
133,76,67
-
TOTAL - II
138,72,42
133,76,67
] GRAND TOTAL ( I and II )
45356,62,13
37632,39,68
Gross Investments
: Less: Depreciation
45639,27,99
282,65,86
37795,48,00
163,08,32
45356,62,13
37632,39,68
179

PARTICULARS
\ SCHEDULE - 9 :: ADVANCES
I- I-A Bills Purchased and Discounted
I-. ,
I-B Cash Credits, Overdrafts and Loans Repayable on Demand
I-. I-C Term Loans
TOTAL - I
II-. (- )
II-A. Secured by Tangible Assets (Includes Advances against Book Debts)
II-. /
II-B. Covered by Bank/Government Guarantees
II-. II.C. Unsecured Advances
TOTAL - II
III-. III-A. Advances in India
) i) Priority Sector
) ] ii) Public Sector
) iii) Banks
) iv) Others
III- TOTAL - III - A
III-. III-B Advances Outside India
TOTAL - III
\ SCHEDULE - 10 :: \ FIXED ASSETS
. A. Tangible Assets
I. Premises
Opening Balance at Cost
] Addition during the Year
Deduction during the Year
Depreciation to Date
WDV at the end of the Year
II. \ Other Fixed Assets
Depreciation to Date
III. ] \ Capital work in Progress
Value at the end of the Year
. B. Intangible Assets
I. Computer Software
] Opening Balance at Cost
/ Depreciation / Amortization to Date
180
31.03.2014
AS ON 31.03.2014
(` ] ) (` in `000)
31.03.2013
AS ON 31.03.2013
2532,15,64
2089,14,89
57185,69,18
47926,35,20
107644,20,02
50523,70,79
45760,44,42
98373,30,10
96634,32,90
86735,93,73
4891,30,22
6118,56,90
107644,20,02
4997,01,03
6640,35,34
98373,30,10
40647,54,70
6413,20,89
60583,44,43
107644,20,02
107644,20,02
107644,20,02
34621,93,81
7618,96,91
56132,39,38
98373,30,10
98373,30,10
98373,30,10
111,79,59
4,27,97
37,70,55
78,37,01
110,60,56
1,19,03
33,99,90
77,79,69
854,28,67
150,33,30
19,47,58
700,20,07
284,94,32
795,83,46
72,40,30
13,95,09
644,67,61
209,61,06
4,13,86
54,48,35
15,86,81
42,75,40
2,56,01
11,41,00
9,83,15
4,13,86
123,11,72
25,64,88
120,90,79
27,85,81
433,92,54
114,21,12
8,91,59
99
111,18,19
11,93,53
303,48,14

(` ] ) (` in `000)
PARTICULARS
31.03.2014
AS ON 31.03.2014
31.03.2013
AS ON 31.03.2013
53,34,14
61,87,66
II. \ ] Interest Accrued
1220,60,91
971,71,82
III. / ( )
Tax Paid in Advance /Tax Deducted at Source (Net of Provision)
2183,01,36
1484,97,99
9,90,20
7,65,32
998,71,36
1057,67,00
4465,57,97
3583,89,79
270,14,44
233,39,16
71,39,27
32,72,14
752,18,25
22090,27,51
8339,33,67
9917,47,08
10318,30,99
VII. ,
Acceptances, Endorsements and Other Obligations
5732,40,11
5578,42,67
VIII. Letter of Comfort
1968,22,18
2358,57,26
522,13,00
656,65,00
92,63
7,30,94
40572,96,22
28276,90,08
\ SCHEDULE - 11 :: OTHER ASSETS

I. ] () Inter Office Adjustments (Net)
IV. Stationery and Stamps

V. () Deferred Tax Assets (Net)
VI. Others
\ SCHEDULE - 12 :: CONTINGENT LIABILITIES
I. ] ]
Claims against Bank not Acknowledged as Debts
II. /
Liability for partly paid Shares/Investments
III. ] Capital Commitments
IV. Options & Derivatives
V. Outstanding forward Exchange Contracts
VI.
Guarantees given on behalf of Constituents
) a) In India
) b) Outside India
IX. ]- Interest Rate Swaps

X. Disputed Tax Liability
XI. ]
Other items for which Bank is Contingently Liable
181
\ SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT

PARTICULARS
31.03.2014
(` ] ) (` in `000)
31.03.2013
YEAR ENDED 31.03.2014 YEAR ENDED 31.03.2013
\ SCHEDULE - 13 :: ] ] INTEREST EARNED

I. / ]/ Interest/Discount on Advances/Bills
11113,75,83
10327,05,13
3008,15,49
2475,75,07
74,82,01
89,24,39
100,58,17
17,64,62
14297,31,50
12909,69,21
I. , ] Commission, Exchange and Brokerage
268,24,13
272,88,50
II. Profit on Sale of Inverstments
395,39,84
188,92,69
8,34,47
(10,04,67)
60,39
47,87
88,71,70
102,69,06
6,86,67
5,87,06
564,67,10
486,61,86
1332,84,30
1047,42,37
II. Income on Investments

III. ] -
Interest on Balances with RBI and other Inter Bank Funds
IV. Others
\ SCHEDULE - 14 :: OTHER INCOME
III. Profit/(Loss) on Redemption of Investments

IV. ,
Profit on sale of Land, Buildings and Other Assets
V. Profit on Exchange Transactions
VI. //
Income by way of Dividend etc. from Subsidiaries/ Companies
/ Joint Ventures in India
VII. Miscellaneous Income
182
\ SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT

(` ] ) (` in `000)
PARTICULARS
31.03.2014
31.03.2013
YEAR ENDED 31.03.2014 YEAR ENDED 31.03.2013
\ SCHEDULE - 15 :: ] INTEREST EXPENDED

I. ] ] Interest on Deposits
9849,29,15
8549,81,29
II. / ]
Interest on RBI/Inter - Bank Borrowings
431,47,37
323,64,73
III. Others
279,21,59
279,21,40
10559,98,11
9152,67,42
1382,85,39
1286,98,24
179,51,94
145,55,03
III Printing and Stationery
24,19,87
19,84,05
IV. \ Advertisement and Publicity
18,36,77
15,70,81
V. Depreciation on Banks Property
89,97,14
83,62,41
78,17
80,33
VII. ( )
Auditors Fees and Expenses (Including Branch Auditors)
20,92,96
14,98,24
VIII Law Charges
12,04,22
11,42,92
IX. ,
Postage, Telegrams and Telephones etc.
36,76,25
31,22,51
X. - Repairs and Maintenance
96,55,33
85,08,78
XI. Insurance
134,48,62
97,79,05
XII. Other Expenditure
313,46,86
244,18,51
2309,93,52
2037,20,88
\ SCHEDULE - 16 :: \ OPERATING EXPENSES
I. \
Payments to and Provisions for Employees
II. , ] Rent, Taxes and Lighting
VI. ,
Derectors Fees, Allowances and Expenses
183
\ - 17 2013-14
1.
, ,
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2. ] \
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184
i.
ii)
iii)
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iii) (\)

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SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES

FOR THE YEAR 2013-14
i.
1. GENERAL:
iii. Shares
The financial statements are prepared on historical cost

convention and on accrual basis of accounting, unless
otherwise stated, by following going concern assumption and
conform to the statutory provisions, regulatory guidelines,
Accounting Standards, Guidance Notes issued by Institute
of Chartered Accountants of India ( ICAI) and practices
prevailing in the banking industry in India.
iv. Debentures and Bonds
ii. Other Approved Securities
v. Subsidiaries / Joint Ventures/ Associates and

vi. Others.
b. Investments are further classified into the following
three categories:
i.
2. REVENUE RECOGNITION:
Held to Maturity (HTM)
ii. Available for Sale (AFS)
Income and Expenditure are accounted on accrual basis,

except the following;
iii. Held for Trading (HFT)

Held to Maturity category comprises of securities
acquired with the intention to hold them up to maturity.
Held for Trading category comprises of securities
acquired with the intention of trading. Available for Sale
securities are those which are not covered under either
of the above two categories. Investments in Subsidiaries/
Joint ventures/Associates are classified as Held to
Maturity.
a. Interest on non-performing advances and non performing

investments is recognized as per norms laid down by
b. Interest on overdue bills, commission, exchange, brokerage
and rent on lockers are accounted on realization.
c. Dividend is accounted when the right to receive the same
is established.
d. In case of suit filed accounts, related legal and other
expenses incurred are charged to Profit and Loss Account
and on recovery the same are accounted as income.
c. Valuation:
The Investments are valued in accordance with Reserve
Bank of India guidelines on the following basis:-
3. FOREIGN EXCHANGE TRANSACTIONS:
i) Held to Maturity:
a. Income and Expenditure items are recorded at the

exchange rates prevailing on the date of transaction.
a. Investments classified under this category are stated

at acquisition cost net of amortization. The excess of
acquisition cost over the face value, if any, is amortized
over the remaining period of maturity.
b. Monetary Assets and Liabilities are revalued at the

Exchange Rates notified by FEDAI at the close of the year
and the resultant gain/loss is recognized in the Profit and
Loss Account. Forward exchange contracts are initially
recorded at exchange rate prevailing at the time of booking
of the contract. These are translated at the year end rates
notified by FEDAI and the resultant gain/loss is taken to
Profit & Loss Account.
b. Any diminution, other than temporary in nature, in the

value of investments is determined and provided for on
each such investment individually.
ii) Available for Sale:
a. Investments classified under this category are marked to
market on quarterly basis and valued as per Reserve Bank
of India guidelines at the market rates available on the
last day of each quarter (Balance Sheet date) from trades/
quotes on the Stock Exchanges, prices/yields declared
by the Fixed Income Money Market and Derivatives
Association of India (FIMMDA). Unquoted securities are
also valued as per the Reserve Bank of India guidelines.
c. Foreign Letters of Credit/Letters of Comfort and Letters of

Guarantee are recorded at the rates prevailing on the date
of entering into such commitment. Outstanding items are
restated at the rates notified by FEDAI as at the close of
the financial year.
d. Derivative contracts undertaken on back-to-back basis
or for hedging Banks own foreign currency exposure are
recorded at the rate prevailing on the date of the contract
and are reported at the closing rates at the Balance Sheet
date. The revenue in respect of these transactions is
recognized for the proportionate period till expiry of the
contract. In respect of contracts done on back to back
basis, the revenue on early termination of the contract is
recognized on termination.
4.
Government Securities
b. The net depreciation under each of the six heads is

fully provided for whereas the net appreciation, if any, is
ignored. The book value of the individual securities does
not undergo any change after marking to market.
iii) Held for Trading:
a. Investments classified under this category are valued at
market price based on market quotations, prices/yields
declared by FIMMDA at the end of every month.
INVESTMENTS:
a. Investments are classified and shown in Balance

Sheet under the following six heads:
b. The net depreciation under each of the six heads is fully

provided for whereas the net appreciation, if any, is
185

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186
iii. \//\
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iii. Upfront fee / Incentives on subscription of securities in

HTM / AFS / HFT categories are reduced from the cost of
securities. The incentives received after sale of securities
is credited to Profit and Loss account.
d. Prudential Norms:
The identification of non performing investments and
provision made thereon is as per Reserve Bank of India
guidelines.
iv. Brokerage, Commission, Security Transaction tax and

Stamp Duty paid in connection with the acquisition of
securities are treated as revenue expenditure.
e. Profit / Loss on Sale of Investments:

i.
5. a. INTEREST RATE SWAPS: (Hedging)
Profit or loss on sale of investments is recognized

on the value dates on the basis of weighted average
cost. Premium on redemption of Debentures/ Bonds is
recognized on the date of redemption.
i.
ii. Profit on sale of investments held in Available for Sale

and Held for Trading categories is recognized in the
Profit and Loss Account.
iii. Profit on sale of investments in Held to Maturity
category is first taken to the Profit and Loss Account
and an equivalent amount of profit is appropriated to the
Capital Reserve (net of taxes and amount required to be
transferred to Statutory Reserve).
ii. Gains/ losses on terminated swap transactions are

recognized when the offsetting gain or loss is recognized
on the designated asset or liability. Thus, the gain or loss
on the terminated swap is deferred and recognized over
the shorter of the remaining contractual life of the swap
or the remaining life of the designated asset/liability.
iv. Loss on sale of investments in all the three categories is

recognized in Profit and Loss Account.
b. INTEREST RATE SWAPS (Trading)
f. General
i.
i.
Purchase and sale transactions in Government Securities

are recorded on the date of settlement.
Trading swaps are marked to market with changes

recorded in the Profit and Loss
Account;
ii. Income and Expenses relating to these swaps are

recognized on the settlement date;
ii. a) Transfer of scrips from AFS/HFT category to HTM

category: Transfer is made at the lower of book value or
market value. In cases where the market value is higher
than the book value at the time of transfer, the appreciation
is ignored and the security is transferred at book value.
In cases where the market value is less than the book
value, the provision against depreciation already held
against that security and the additional provision, if any,
required based on valuation done on the date of transfer
is recognized and adjusted to reduce the book value to
the market value and the security is transferred at the
market value.
b)
Income on continuing swap transactions is recognized on

accrual basis except the swap designated with an asset
or liability that is carried at lower of cost or market value in
the financial statements. In that case, the swap is marked
to market with the resulting gain or loss recorded as an
adjustment to the market value or designated asset or
liability.
iii. Fee is recognized as income or expense as the case may

be;
iv. Gains or losses on the termination of the swaps are
recorded immediately as income or expenses on such
termination.
6. ADVANCES
a. Advances are classified in accordance with the Prudential
Norms issued by Reserve Bank of India.
i.
In case of transfer of securities from HTM to AFS/HFT

category:
Advances are classified into Standard, Sub-standard,

Doubtful and Loss assets borrower-wise.
ii. Provisions are made for non performing assets in

accordance with the RBI Guidelines, and additional
provisions as assessed
If the security originally placed under HTM category;

-
is at a discount, it is transferred to AFS/HFT category at

the acquisition price/ book value.
is at a premium, it is transferred to AFS/HFT category at

the amortized cost.
b. Advances stated in the Balance Sheet are net of

provisions made for Non Performing Assets
After transfer in both the above cases, these securities

are immediately re-valued and resultant depreciation, if
any, is provided.
c. Partial recoveries in Non Performing Assets are

apportioned first towards charges and interest, thereafter
towards principal with the exception of non performing
advances involving compromise settlements in which
case the recoveries are first adjusted towards principal.
iii. General provision is made for standard assets.
c) In case of transfer of securities from AFS to HFT category

or vice-versa, the securities are not re-valued on the
date of transfer and depreciation already held if any, is
transferred to the provision for depreciation against the
HFT securities and vice-versa.
7. FIXED ASSETS
a) Premises and other Fixed Assets are stated at historical
cost net of depreciation.
187
i. \
1956 \ XIV
]
ii. {
33.33% ]
iii. 7
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, 1972
/ 2010-11
5
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11 ,
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]

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188
i.
ii.

iii. ]
b) DEPRECIATION
i.
(b) Pension:
The employees Pension Fund is funded by the Bank and
is managed by a separate trust. The present value of the
Banks obligations under Pension is recognized on the
basis of an actuarial valuation as at the year end and the
fair value of the Plan assets is reduced from the gross
obligations to recognize the obligation on a net basis.
Depreciation on Premises and on other Fixed Assets

except Computers and ATMs is provided on written down
value method at the rates specified in Schedule XIV of
the Companies Act 1956.
ii. The depreciation on Computers and other Peripherals is

provided @ 33.33 % on straight line method.
(c) Amortization
iii. Depreciation on ATMs is provided on straight line method

based on the estimated useful life of seven years.
The additional liability/expenditure arising consequent

upon the reopening of Pension Option to the employees
of the bank and enhancement in gratuity limit pursuant
to amendment to Payment of Gratuity Act, 1972 is being
amortized equally over a period of five years beginning
with the financial year 2010-11.
c) AMORTIZATION
i.
Premium wherever is paid for acquisition of leasehold

land, such premium along with cost of the buildings
constructed thereon is amortized over the period of lease.
9. PROVISION FOR TAXATION:

a. Provision for tax is made for both Current and Deferred
Taxes.
ii. Acquisition cost of software is treated as intangible assets.

a. Software acquired under core banking solution (CBS) is
amortised over its estimated useful life of five years.
b. Deferred tax assets and liabilities arising on account of

timing differences and which are capable of reversal in
subsequent periods are recognized using the tax rates
and laws that have been enacted or substantively enacted
as of the balance sheet date.
b. Other software acquired is charged off in the year of

acquisition.
8.
EMPLOYEES BENEFITS
c. Deferred tax assets are not recognized unless there is

virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will
be realized.
a) Short Term Benefits

Short-term compensated absences are recognized as
an expense on an undiscounted basis in the Profit &
Loss Account of the year in which the related service is
rendered.
d. Special Reserve:
Revenue and other Reserves include Special Reserve
created under Section 36 (1) (viii) of the Income Tax Act,
1961.The Board of Directors of the Bank has passed
a resolution approving creation of the reserve and
confirming that there is no intention to make withdrawal
from the Special Reserve.
b) Long Term Benefits:

Long Term Benefits such as Leave Encashment, Sick
Leave, LFC/LTC availment/encashment, Ex-gratia to
retirees and Relocation expenses on exit are recognized
on the basis of actuarial valuation made as at the end of
the year.
10. IMPAIRMENT OF ASSETS

An assessment is made at each balance sheet date
whether there is any indication that an asset is impaired. If
any such indication exists, an estimate of the recoverable
amount is made and impairment loss, if any, is provided
for.
c) Post Employment Benefits

i.
Defined Contribution Plans: Defined Contribution

Plans such as Provident / Pension fund are recognized
as an expense and charged to the Profit & Loss
Account.
11. Provisions, Contingent Liabilities and Contingent

Assets
ii. Defined Benefit Plans
a. In conformity with AS.29 Provisions, Contingent Liabilities

and contingent Assets issued by the Institute of Chartered
Accountants of India, the Bank recognizes provisions only
when :
(a) Gratuity:
The employees Gratuity Fund Scheme is funded by
the Bank and managed by a separate trust who in turn
manage their funds through approved schemes of Life
Insurance Companies. The present value of the Banks
obligations under Gratuity is recognized on the basis of an
actuarial valuation as at the year end and the fair value
of the Plan assets is reduced from the gross obligations
to recognize the obligation on a net basis.
i.
it has a present obligation as a result of a past event.
ii. it is probable that an outflow of resources embodying

economic benefits will be required to settle the obligation,
and
iii. when a reliable estimate of the amount of the obligation
can be made.
189
. ]
i. ]
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190
]

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]
12.
.
.
.
.
.
. ]
\. .
b. No provision is recognized for :

i.
any possible obligation that arises from past events

and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Bank; or
for, except in the extremely rare circumstances where

no reliable estimate can be made.
c) Contingent Assets are not recognized in the financial
statements.
12. NET PROFIT
ii. any present obligation that arises from past events but is
not recognized because
a)
It is not probable that an outflow of resources embodying

economic benefits will be required to settle the obligation or
b) A reliable estimate of the amount of obligation cannot be

made.
Such obligations are recorded as Contingent Liabilities.
These are assessed at regular intervals and only that
Part of the obligation for which an outflow of resources
embodying economic benefits is probable, is provided
The Net Profit disclosed in the Profit and Loss Account is after:a. Provision for depreciation on Investments.
b. Provision for Taxation.
c. Provision on loan losses
d. Provision on Standard Assets.
e. Provision for non-performing investments
f. Other usual and necessary provisions.
191
\ 18 -
1. {
(..) ]
:
1.1. ]
31 \, 2014
31 \, 2013
-II -III -II -III
i) 1]
(%)
7.96
ii) - I ] (%)
8.25
0.13
iii) II ] (%)
2.93
2.69
iv) ] ()(%) 11.18 10.78
v)
60.14
vi) ]
200.00*
vii) -1
] , ]
I ] ,
....
viii) -2 ] ,
]

8.52
3.24
11.76
58.00
1.2.1
( )

i)
(*) 21.12.2013 66.59 ( 56.59

) 10/- 300,34,539
,
1.2
(` in crore)
(1)
(i)

,
(ii)

,
(iii)

(2)
-\[
i)
ii) ]
iii)
/
iv)
* ]/] ` 2.60 (2.60

.)
**
) ` 1 (` 1) 162 (162) ( )
) `1 (` 1) 8 (8)
) `138.72 (`133.77 )
.10/- 8000000 (7750000)
() \

\

31 \ 2014 31 \ 2013
*45500.56
**138.72
*37661.71
**133.77
282.66
0.00
163.08
0.00
*45217.90
**138.72
*37498.6
**133.77
163.08
119.58
26.86
136.22
0.00
282.66
0.00
163.08
192
ii)

i)
ii)
31 \ 2014

41.60 8580.00 1267.09 5611.84

(100.00) (2500.00) (212.05) (2500.00)
0.00
0.00
0.00
0.00
(0.00)
(0.00)
(0.00) (0.00)
52.00
936.00
(0.00) (1000.00)
0.00
0.00
(0.00)
(0.00)
18.77
(21.92)
0.00
(0.00)
520.00
(0.00)
0.00
(0.00)
*Investment includes ` 2.60 (` 2.60) Crore invested in

Regional Rural Bank as Share Capital/share capital deposit.
Schedule 18 - Notes on Accounts

In terms of the Guidelines issued by the Reserve Bank of India (RBI),
the following disclosures are made:
1.1. Capital
(` in crore)
1.
Particulars
i) Common Equity Tier
1 Capital Ratio (%)
ii) Tier I capital ratio (%)
iii) Tier II Capital ratio (%)
iv) Total Capital ratio (CRAR) (%)
v) Percentage of the
shareholding of the
Government of India
vi) Amount of equity
capital raised
vii) Amount of Additional
Tier 1 capital raised; of which
Perpetual Non
Cumulative Preference
Shares (PNCPS):
Perpetual Debt
Instruments (PDI):
viii) Amount of Tier 2
capital raised; of which
Debt capital
instrument
Preference Share
Capital Instruments:
Perpetual Cumulative
Preference Shares (PCPS)
Redeemable NonCumulative Preference
Shares (RNCPS)
Redeemable
Cumulative Preference
Shares (RCPS)
** Includes the following

a) Investments in 162 (162) shares (class B) of Master card
Inc valued at ` 1(` 1)
31st March-2014 31st March- 2013

BASEL II BASEL-III BASEL -II BASEL-IIII
NA
8.25
2.93
11.18
7.96
0.13
2.69
10.78
NA
8.52
3.24
11.76
b) Investments in 8 (8) shares of SWIFT valued at ` 1 (` 1)

c) Investment in 8000000 (7750000) shares of Malaysian
ringgit 10 each amounting ` 138.72 crore (` 133.77 crore) in
India International Bank (Malaysia) BHD.
NA
NA
NA
NA
60.14
200.00*
58.00
NIL
NIL
NIL
Shares of Master Card Inc are allotted in kind, free of cost,

as an incentive in view of the past business relation with
these entities.
Shares of SWIFT include shares allotted in initial membership
and shares accrued on re-allocation. The reallocation of share
is based on banks utilization of SWIFTs network based
financial services.
1.2.1 Repo Transactions
(` in crore)
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
(ii) Corporate Debt

Securities
NIL
NIL
Securities purchased
under Reverse Repo
Particulars
Minimum Maximum
Daily
Balance
outstanding outstanding Average as on 31st
during the during the outstanding March
year
year
during the
2014
year
Securities sold
under Repo
(i) Government
Securities
(*) The Bank has allotted 300,34,539 equity shares on preferential basis to
Government of India (GOI) of face value of ` 10/- each for cash @ ` 66.59p
per share (including premium of ` 56.59ps per share) on 21.12.2013.
1.2 Investments
(` in crore)
Items
31st March 31st March
2014
2013
(1) Value of Investments
(i) Gross Value of Investments
In India
*45500.56
*37661.71
Outside India
**138.72
**133.77
(ii) Provision for Depreciation
In India
282.66
163.08
Outside India
0.00
0.00
(iii) Net Value of Investments
In India
*45217.90
*37498.63
Outside India
**138.72
**133.77
(2) Movement of provisions held
towards depreciation on
investments.
i) Opening balance
163.08
26.86
ii) Add: Provision made
during the year
119.58
136.22
iii) Less: Write-off/(write-back) of
excess provisions during the year
0.00
0.00
iv) Closing balance
282.66
163.08
193
41.60
(100.00)
8580.00
(2500.00)
1267.09 5611.84
(212.05) (2500.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
(i) Government
Securities
52.00
(0.00)
936.00
(1000.00)
18.77
(21.92)
520.00
(0.00)
(ii) Corporate Debt

Securities
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
1.2.2.
i) \ (31.03.2014 )
()
(2)
(1)
1
(3)
2097.18
(125.52)
1543.36
(2191.43)
756.44
(851.70)
920.11
(1305.05)
317.23
(312.27)
657.59
(0.00)
6291.91
(4785.97)
210.06
(135.35)
6081.85
(4650.62)
7
8
(4)
1991.91
(24.50)
1214.63
(1419.85)
373.21
(361.53)
788.63
(1158.02)
317.23
(312.27)
657.59
(0.00)
5343.20
(3276.17)
5343.20
(3276.17)
(3) - \-8
( )

31-03-2014
31-03-2013
293.71
326.43
3245.19
1338.80
312.23
307.27
2230.72
2678.12
6081.85
4650.62
)
) \
) /
ii) ]
( )
2013-14
2012-13
33.89
0.43
102.91
33.46
27.01
--
109.79
33.89
72.13
8.79
(5)

(6)
( )
\

(7)
1967.41
(0.00)
175.49
(175.49)
60.02
(71.95)
102.10
(103.82)
175.49
(175.49)
60.02
(71.95)
2069.51
(103.82)
175.49
(175.49)
60.02
(71.95)
2069.51
(103.82)
() , .. ...
.41/21/04/141/2013-14 .23.08.2013
()/ (\)
` 8164.59 (` 41.38 ) /]
/ /]
(\) `69.08
(0.80 ) ]
(\) () / ]
5189.36 (0.00 )
\ ] (\)
() 22.78 (7.25
) 0.76 (0.14 )
]
() \ ` 0.35
(` 24.94 ) ] ] ]
]
` 0.18 (# ` 12.64 ) ]

# 12.64 2
194
1.2.2. Non S.L.R. Investment Portfolio

(i) Issuer composition of Non SLR Investments (AS ON 31.3.2014)
Sr.
No.
(1)
Issuer
(2)
Amount
(3)
PSUs
FIs
Banks
Private Corporates
Subsidiaries / Joint
Ventures
Others
Total
7
8
Less: Provision held

towards depreciation
Balance
Extent of
Private
Placement
(4)
2097.18
(125.52)
1543.36
(2191.43)
756.44
(851.70)
920.11
(1305.05)
317.23
(312.27)
657.59
(0.00)
6291.91
(4785.97)
210.06
(135.35)
6081.85
(4650.62)
Extent of
below
Investment
Grade
Securities(5)
Extent of
unrated
securities
(6)
(` in crore)
Extent of
unlisted
securities
(7)
1991.91
(24.50)
1214.63
(1419.85)
373.21
(361.53)
788.63
(1158.02)
317.23
(312.27)
657.59
(0.00)
5343.20
(3276.17)
1967.41
(0.00)
175.49
(175.49)
60.02
(71.95)
102.10
(103.82)
175.49
(175.49)
60.02
(71.95)
2069.51
(103.82)
5343.20
(3276.17)
175.49
(175.49)
60.02
(71.95)
2069.51
(103.82)
Total under column 3 include the following categories of

investments specified in Schedule 8 to the Balance Sheet:
a) During the year, the Bank in terms of RBI Circular DBOD.BP.BC.
(` in crore)
Government securities aggregating ` 8164.59 crore (` 41.38 crore)
Particulars
No.41/21/04/141/2013-14 dated 23.08.2013, has shifted Central/State

from Available for Sale (AFS) category/Held for Trading (HFT) category
Net Value
to Held to Maturity (HTM) Category at lower of acquisition cost/book
31st March-2014 31st March-2013

(a)Shares
value / market value and booked a shifting loss of ` 69.08 crore (` 0.80
293.71
326.43
3245.19
1338.80
312.23
307.27
Held to Maturity (HTM) category to Available for Sale (AFS) category and
(d) Others
2230.72
2678.12
investment of ` 22.78 crore (` 7.25 crore) in Venture Capital funds from
Total
6081.85
4650.62
Held to Maturity (HTM) category to Available for Sale (AFS) category
(b)Debentures & Bonds

(c) Subsidiaries / Joint Ventures
Crore) to Profit and Loss Account. The Bank also shifted Central/State
Government Securities aggregating to ` 5189.36 crore (` 0.00 crore) from
and provided an aggregate depreciation of ` 0.76 Crore (` 0.14 Crore).
ii) Non Performing Non SLR Investments

(` in crore)
(b) The Bank has earned gross amount of ` 0.35 crore (` 24.94 crore)
2013-14
2012-13
as profit on sale of securities in HTM category out of which an amount
Opening Balance
33.89
0.43
of ` 0.18 crore ( #` 12.64 crore), net of tax and amount required to
102.91
33.46
be transferred to Statutory Reserve, has been appropriated to Capital
Reductions during the year
27.01
--
Closing Balance
109.79
33.89
Total provisions held
72.13
8.79
Particulars
Reserve account as per RBI guidelines.

# out of `12.64 crore an amount of ` 2 crore transferred during the year
195
1.3
1.3.1 /]
( )
2013-14

]
\
1.3.2 ] :
.
2012-13
( )
2013-14 2012-13
]

(-) (8.83% ]..2023) 188.68
(ii) ]

(-)
(iii)
(-)
]

(iv)
(-)
]

]
, ,
] ] ,

] ,
] \-/

iii) \
]

]

] ] ]

) ] , ] ]

, , , ]
]
]
] \ ]
(i)
) \ / \ /
]
] ] \
] , /
, ] ]
] ] ]
, ] ]
, ] ,
) \ \ , ,
\, , ,
]
1.3.3 ]
) :
) ] \
i) ] () ()
] ]
, ] , ],
, , , ,
. 1500
( . 500 )
[\ \
ii)
, ] , ],
196

] / ] ]
] , \- ]
\ ]
] ]
] ]
] ]
]
] ]
/ ]
]
] \ , , ,
]
1.3 Derivatives
1.3.1 Forward Rate Agreement / Interest Rate Swaps
(` in crore)
Particulars
2013-14
2012-13
The notional principal of swap
Nil
Nil
agreements
Losses which would be incurred
if counter parties failed to fulfill their
obligations under the agreements
Nil
Nil
Collateral required by the bank upon
entering into swaps
Nil
Nil
Concentration of credit risk arising
from the swaps
Nil
Nil
The fair value of the swap book
Nil
Nil
1.3.2 Exchange Traded Interest Rate Derivatives:
iii)
(` in crore)
S.No. Particulars
Amount
2013-14 2012-13
b)
(i)
Notional principal
amount of exchange
traded interest rate
derivatives undertaken
during the year
(instrument-wise)
(8.83% G.Sec 2023)
188.68
Nil
(ii)
Notional principal
amount of exchange
derivatives outstanding
(instrument-wise)
Nil
Nil
(iii) Notional principal
amount of exchange
derivatives outstanding
and not highly effective
(instrument-wise)
Nil
Nil
(iv) Mark-to-market value of
exchange traded interest
rate derivatives outstanding
and not highly effective
(instrument-wise)
Nil
Nil
1.3.3 Disclosures on risk exposure in derivatives
A) Qualitative Disclosures:
a) Structure and Organization for Management of risk
in derivatives trading:
i) In terms of Reserve Bank of India guidelines on Interest
Rate Swaps (IRS) and Forward Rate Agreements (FRA)
the Bank has approved policies and procedures, counter
party exposure limits, delegation of powers, accounting
policy, policy for valuation, ISDA documentation, cut
loss, reporting etc., for Interest Rate Swaps and fixed a
cap of ` 1500 crore for interest rate swaps (sub-limit of
` 500 crore for Trading Book).Bank has conducted the
derivative operations within the overall framework of these
guidelines.
ii) The Bank has approved policies and procedures, counter
party exposure limits, delegation of powers, accounting
c)
d)
197
policy, ISDA documentation, reporting etc., for undertaking

forex derivatives in various forms of currency swaps &
various types of interest rates swaps not specifically
prohibited by Reserve Bank of India with the corporate
borrower customers, other banks and non-borrower
customers to be covered on back to back basis. Banks
policy also permits entering into Plain Vanilla European
Style Option to Banks customers for hedging / pricing their
forward exposures on back to back basis, or for hedging
foreign currency exposures.
Derivative contracts undertaken on back-to-back basis or
for hedging own foreign currency exposure are recorded
at the rate prevailing on the date of the contract and are
reported at the closing rates at the Balance Sheet date.
The revenue in respect of these transactions is recognized
for the proportionate period till the expiry of the contract.
In respect of contracts done on back to back basis, the
revenue on early termination of the contract is recognized
on termination.
Scope and nature of risk measurement, risk reporting
and risk monitoring systems:
The position of all outstanding swaps, new swaps entered,
swaps exited, mark to market value of swaps etc., is being
reviewed by the banks investment committee and Board
at monthly intervals. Details of transactions undertaken
in IRS are also reported to Reserve Bank of India on a
fortnightly basis.
Policies for hedging and / or mitigating and strategies
and processes for monitoring the continuing
effectiveness of hedges / mitigants:
Depending on the market opportunities a view on
interest rate movement is taken and acted upon. Though
the settlement of swaps takes place on due date/dates
as per the terms of the swaps, the value monitoring is
carried out daily to know the impact of market changes
on Swap Book. When unfavorable market movements
are unidirectional, swaps are exited cutting loss. Cut
loss limits, exit powers, reviewing authority etc., are
prescribed.
Accounting policy for recording the hedge and nonhedge transactions, recognition of income, premiums
and discounts, valuation of outstanding contracts,
provisioning, collateral and credit risk mitigation:
Detailed accounting policy and valuation policy are
approved by Board. Transactions for hedging purposes
are accounted for on accrual basis except the swap
designated with an asset / liability that is carried at lower
of cost or market value. In that case, the swap is marked
to market, with the resultant gain or loss recorded as an
adjustment to the market value of designated asset or
liability. On termination of swap, gain or loss is recognized
when the offsetting gain or loss is recognized on the
designated asset or liability. Any gain or loss on the
terminated swap was deferred and recognized over the
shorter of the remaining contractual life of the swap or
the remaining life of the asset / liability.
Trading transactions have to be marked to market with
charges recorded in the income statement. Income,
expenditure, fee, gains or losses on termination of swaps
are all recorded as immediate income or expenses.
)
( )

31.03.2014 31.03.2013
]
31.03.2014 31.03.2013
( )
752.18
) \
752.18
ii
]
) \
142.19
. (+)
142.19
. (-)
. (+)
. (-)
iii
]
161.00
iv
] (100*01)
. \
v
100* 01
) \
] \ `0.00 (` 142.19 )

1.4.1.]
(` )

2013-14
2012-13
(i)
(%)
3.11
2.45
(ii)
\[ ()
()
3714.49
1798.01
()
2832.35
2741.67
() ]
689.24
825.19
()
5857.60
3714.49
(iii) \[
()
2409.18
755.85
() ()
933.29
1653.33
() ]
0.00
0.00
()
3342.47
2409.18
(iv)
\[ ( )
()
1305.31
1042.16
()
1489.23
615.12
() ]
279.41
351.97
()
2515.13
1305.31
198
B) Quantitative Disclosure
(` in crore)
S.No.
Particulars
Currency Derivatives
31.03.2014
II
31.03.2013
Interest rate Derivatives

31.03.2014 31.03.2013
Derivatives (Notional principal Amount)
NIL
752.18
NIL
NIL
a) For Hedging
NIL
752.18
NIL
NIL
b) For Trading
NIL
NIL
NIL
NIL
NIL
142.19
NIL
NIL
Marked to Market Positions

A. Hedging
a) Asset (+)
NIL
142.19
NIL
NIL
b) Liability(-)
NIL
NIL
NIL
NIL
B. Trading
NIL
NIL
NIL
NIL
a) Asset(+)
NIL
NIL
NIL
NIL
b) Liability(-)
NIL
NIL
NIL
NIL
III
Credit Exposure
NIL
161.00
NIL
NIL
IV
Likely Impact of one percentage change in
Interest rate (100*PV01)
NIL
NIL
NIL
NIL
a) On hedging derivatives
NIL
NIL
NIL
NIL
b) On trading derivatives
NIL
NIL
NIL
NIL
during the year
NIL
NIL
NIL
NIL
a) On hedging
NIL
NIL
NIL
NIL
b) On trading
NIL
NIL
NIL
NIL
Maximum and Minimum of 100*PV01 observed
Bank is having Mark to Market Position of ` 0.00 crores (` 142.19 crores ) for a derivative deal entered for hedging its foreign
currency exposure. Net mark to market effect for this transaction is ` NIL ( ` NIL) for the bank.
1.4.1
Non-Performing Assets
(` in crore)
Particulars
(i) Net NPA to Net Advances (%)
2013-14
2012-13
3.11
2.45
(ii) Movement of NPAs (Gross)

(a) Opening Balance
3714.49
1798.01
(b) Additions during the year
2832.35
2741.67
689.24
825.19
5857.60
3714.49

(d) Closing Balance
(iii) Movement of Net NPAs
(a) Opening Balance
(b) Additions during the year (Net)
2409.18
755.85
933.29
1653.33
0.00
0.00
3342.47
2409.18
(a) Opening Balance
1305.31
1042.16
(b) Provisions made during the year
1489.23
615.12
279.41
351.97
2515.13
1305.31
(d) Closing Balance

(iv) Movement of provisions for NPAs (excluding provisions on standard assets)
(c) Write off/write back of excess provisions

(d) Closing Balance
199
1.4.2 \
31.03.2014 \
(` )

1
\
(
)* 31.03.2013
32
2414.33
33
105
105
1025
1025
1162
1163
0 10.02
0.00 2424.35 1006.73
0.00 0.00 0.00 1006.73 6261.48
0.00
0.00
0.00 6261.48 9682.54
0.00
10.02
0.00 9692.56
418.13
0.00
0.00 418.13
0.00 0.00 0.00
0.00
0.00
0.00 261.33
716.85
0.00
0.00
0.00 716.85
15
107
16
37.39
46
37.39 261.33
50
46
47
113
1741.02
0 109.10
0.00 1850.12 309.97 16.39 7.22 0.00 333.58 2734.08 16.72
0.00
0.00 2750.80 4785.07 33.11 116.32
0.00 4934.50
226.62
0.00
0.00 226.62
0.00
0.00
0.00 212.92
0.00 454.02
14.48
0
0.00 0.00 0.00

0
14.48 212.92
0
454.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
30
30
701
701
731
731
1216.89 1582.75
1582.75
\

]

\\
/
]
0.00 365.86
0.00
0.00
10.85
18
48
137
39.22
50.07
185
50.07
70
140
210
0.00 597.59
0.00 187.44 0.00 0.00 187.44
0.00 295.35 88.34
0.00 383.69
0.00 743.47 425.25
0.00 1168.72
0.00
79.96
0.00
7.23
0.00
8.59
2.30
0.00
10.89
0.00 65.31
32.77
0.00
98.08
46
46
52
53.90 942.05
0.00
0.00
0.00 117.29
0.00 3658.01 700.61 16.39 7.22 0.00 724.22 6385.33 16.72
0.00
0.00 6402.05 10626.66 33.11 124.51
0.00 10784.28
0.00
0.00 428.93
0.00
0.00 450.60
0.00 910.33
95.39
0.00
0.00
0.00
95.39
53.90
40
42
126
39.22
0.00 260.68 336.91
18
10.85
0.00 49.49 30.47
31.03.2014
\
365.86 1216.89
3540.72
428.93
0.00
30.80
7.23 0.00 0.00

0
0.00 0.00 0.00

3
0.00 0.00 0.00
130
110
30.80 450.60
0.00
52
0.00 942.05 1091.34
0.00
0.00
111
276
910.33
0.00
0.00
0.00 1091.34
0
283
: 1. ..2 68 / / 403.31 16.65

2. ..6 , ( 52 106 ) /
200

1.4.2
Particulars of Accounts Restructured
Type of
Restructuring
Asset Classification
Details
Restructured
Accounts as
on April 1 of the
FY.(opening
figures)* - as
on 31.03.2013
Fresh
restructuring
during the
year
Upgradations
to
restructured
standard
category
during the FY
No. of
borrowers
Stan
dard
Sub
stan
dard
32
Doub Loss
tful
0
Under SME Debt

Restructuring Mechanism
Total
Stan
dard
33
105
Others
Sub Doub Loss Total

stan tful
dard
0
105
Stan
dard
Total
Sub Doub Loss

stan tful
dard
1025
Total
Stan
dard
1025
(`in Crore)
Sub Doub Loss

stan tful
dard
1162
Total
1163
Amount
outstanding 2414.33
0 10.02
0.00 2424.35 1006.73
0.00 0.00 0.00 1006.73 6261.48
0.00
0.00
0.00 6261.48 9682.54
0.00
10.02
0.00 9692.56
Provisions
418.13
0.00
0.00 418.13
0.00 0.00 0.00
0.00
0.00
0.00 261.33
716.85
0.00
0.00
0.00 716.85
No. of
borrowers
15
107
16
37.39
46
37.39 261.33
50
46
47
113
Amount
outstanding 1741.02
0 109.10
0.00 1850.12 309.97 16.39 7.22 0.00 333.58 2734.08 16.72
0.00
0.00 2750.80 4785.07 33.11 116.32
0.00 4934.50
Provisions
226.62
0.00
0.00 226.62
0.00
0.00
0.00 212.92
0.00 454.02
No. of
borrowe rs
14.48
0
0.00 0.00 0.00

0
14.48 212.92
0
454.02
0.00
0.00
Amount
outstanding
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Provisions
0.00
0.00
0.00
0.00
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
30
30
701
701
731
731
1216.89 1582.75
1582.75
Restructured No. of
borrowe rs
standard
advances
which cease to
attract higher
provisioning
and / or
additional
risk weight
Amount
at the end of outstanding
the FY and
hence need
not be shown
as restructured
standard
advances at
the beginning Provisions
of the next FY
No. of
Downgradations borrowers
of restructured Amount
accounts during outstanding
the FY
Provisions
Write-offs of
restructured
accounts
during the FY
Under CDR Mechanism
No. of
borrowers
0.00 365.86
0.00
0
0.00
10.85
39.22
18
48
137
39.22
50.07
185
50.07
70
140
210
0.00 260.68 336.91
0.00 597.59
0.00 187.44 0.00 0.00 187.44
0.00 295.35 88.34
0.00 383.69
0.00 743.47 425.25
0.00 1168.72
0.00
79.96
0.00
7.23
0.00
8.59
2.30
0.00
10.89
0.00 65.31
32.77
0.00
98.08
46
46
52
53.90 942.05
0.00
0.00
0.00 117.29
0.00 3658.01 700.61 16.39 7.22 0.00 724.22 6385.33 16.72
0.00
0.00 6402.05 10626.66 33.11 124.51
0.00 10784.28
0.00
0.00 428.93
0.00
0.00 450.60
0.00 910.33
95.39
0.00
0.00
0.00
95.39
53.90
Restructured borrowers
40
Accounts as
st
Amount
on 31 MARCH
outstanding 3540.72
2014
42
126
No. of
Provisions
18
10.85
0.00 49.49 30.47

0
Amount
outstanding
365.86 1216.89
428.93
0.00
30.80
7.23 0.00 0.00

0
0.00 0.00 0.00

3
0.00 0.00 0.00
130
110
30.80 450.60
0.00
52
0.00 942.05 1091.34
0.00
0.00
111
276
910.33
0.00
0.00
0.00 1091.34
0
283
FOOT NOTE : 1. Figures under Sl no 2 include amount of ` 403.31 cr towards fresh/additional disbursements/increase
in liabilities in 68 existing accounts, relative provision being ` 16.65 cr. 2. In case of figures under sl no 6, the write offs are
NIL, and the total figures furnished relate to recovery/reduction in liabilities ( closed a/cs 52 and partial recoveries in 106 a/
cs) in existing accounts.
201
1.4.3 \ /
\
( )
2013-14
(i)
(ii) / \
( )
(iii)
(iv)

(v) /
2012-13
2013-14
2012-13
9.40
9.88
0.88
0.80
1.82
2.12
(iv) (%)
(v) \ * (]
] ) (` )
0.29
0.99
13.47
13.55
(vi) \ * (` ) #
0.02
0.09
i) ]
( )
2013-14 2012-13
)

2
)
\
ii) \ ]
12
, 1949 27 X {
(\ ,
, )
# 12
, 1949 27 X {

(\ , , )
( )
2013-14
3
29.49
20.00
(i)
]
(ii)
]
(iii)
\
1.4.4 \/ ]

1
\
2

3

1.4.5
1.5
2012-13
( )
31 \-2014
31 \-2013
*
1307.82
1060.82
* ` 527.32 (` 477.32 ) \

1.4.6
) { 31.03.2014
26.00 ( 38.06 ) ] ..
]

)
202
* \ ] (] )
]
# \
1.4.3 Details of financial assets sold to Securitization /

Reconstruction Company for Asset Reconstruction
b) The above floating provision is netted off from advances.

1.5 Business Ratios
(` in crore)
Particulars
Particulars
2013-14
2012-13
(i) No. of accounts
Nil
Nil
(ii) Aggregate value
(net of provisions) of
accounts sold to SC/ RC
Nil
Nil
(iii) Aggregate consideration
Nil
Nil
(iv) Additional consideration
realized in respect of
accounts transferred in
earlier years
Nil
Nil
(v) Aggregate gain/ loss over net
book value
Nil
Nil
1.4.4 Details of non performing financial assets sold /
purchased:
2013-14
2012-13
(i) Interest income as

percentage to working funds
9.40
9.88
(ii) Non-interest income as

0.88
0.80
(iii) Operating profit as

1.82
2.12
(iv) Return on assets (%)
0.29
0.99
(v) Business* (deposits plus

advances) per employee
(` in crores)
13.47
13.55
0.02
0.09
(vi) Profit* per employee

( ` in crores) #
Working funds reckoned as average of total assets

(excluding accumulates losses, if any) as reported to
Reserve Bank of India in Form X under Section 27 of
the Banking Regulation Act, 1949 during the 12 months
of the financial year.
Return on assets is with reference to average working

funds (i.e., total of assets excluding accumulated
losses, as reported to Reserve Bank of India in Form X
under Section 27 of the Banking Regulation Act, 1949
during the 12 months of the financial year.
For the purpose of computation of business (deposits

plus advances) per employee inter bank deposits are
excluded.
Based on the number of employees as at year end.
i) Details of non performing financial assets purchased.

(` in crore)
Sl. No.
1
Particulars
2013-14
2012-13
a) No. of accounts
purchased
during the year
NIL
NIL
b) Aggregate outstanding
NIL
NIL
a) of these, no. of
accounts restructured
during the year
NIL
NIL
b) Aggregate outstanding
NIL
NIL
ii) Details of non performing financial assets sold.

(` in crore)
Sl. No.
Particulars
2013-14
2012-13
NIL
Aggregate outstanding
29.49
NIL
Aggregate consideration
received
20.00
NIL
No. of accounts sold
2
3
1.4.5
Provisions on Standard Assets

(` in crore)
Particulars
Provisions towards
Standard Assets*
st
st
31 March-2014
31 March-2013
1307.82
1060.82
*Including provision for sacrifice in respect of restructured

standard assets amounting to ` 527.32 crores (` 477.32
crores)
1.4.6 FLOATING AND ADDITIONAL PROVISIONS
a) Floating Provision of ` 26.00 crore (` 38.06 crore), is
held as at 31.03.2014 in respect of gross non performing
advances over and above the minimum prescribed as per
RBI guidelines with a view to strengthening the financial
position of the Bank.
203
1.6 :
(` )
31.03.2014
1
2-7
8-14
15 - 28 29 days - 3 6 1 3
3
6 1 3 5
1121.85 3606.81 1581.57

2559.17 30951.04 18293.83 31866.28 49032.30 1450.59
1381.67 141845.12
(274.93) (3719.67) (1407.96) (1712.06) (13806.01) (12203.72) (37987.12) (50684.90) (1313.77) (685.42) (123795.58)
307.33
860.30
1886.75
1893.24 12322.53 6349.70
9811.65 44007.62 12744.96 17460.14 107644.20
(347.77) (726.24) (1744.17) (1454.37) (9700.13) (6761.67) (10581.17) (40750.36) (11190.86) (15116.55) (98373.30)
29.74
709.61
(78.21) (170.90)
390.82
(495.91)
784.82
791.23
301.24
(420.80) (1919.67) (888.52)
1159.18 4918.46
6910.49 29643.70 45639.28
(622.24) (4407.73) (4590.43) (24201.07) (37795.48)
135.18 5710.75
(8.43) (2925.65)
127.18
(119.99)
543.30 1887.37
623.90
(330.80) (1240.65) (2149.47)
803.57
533.58
(203.39) (1180.36)
1300.10 1520.17 13185.09

(117.55) (2843.03) (11119.34)
507.09
(363.86)
32.88
(57.83)
44.25
(59.41)
100.08
528.10
768.88
(225.82) (651.50) (1137.03)
4.59
(53.52)
0.00
(0.00)
0.00
(0.00)
0.00
1985.87
(0.00) (2548.97)
194.36
(56.94)
61.61
(82.97)
0.78
(28.65)
122.52 1544.49
262.59
(221.30) (973.52) (1679.54)
118.85
(122.80)
70.77
(36.33)
160.64
(10.45)
0.00
2536.61
(0.00) (3212.50)

1.7 ]
1.7.1. ]
(` )
31 \ 2014
) ]
i) - ]
:
]
(ii) ] - ]
( , , ] , ,
] , , , ,
) ] -
( .2857.18 + - .128.27 )
(iii) () ] .
. ] .
) ]
(\) (\)
- ] ( 1847.98 (` 2954.18 ) +
- .303.91 )(308.42 )
]
204
31 \ 2013
7918.77
5594.48
6532.23
5097.23
2985.45
3085.62
0.00
0.99
2151.89
13056.11
3262.60
12881.44
1.6
Asset Liability Management:

( ` in Crore)
Maturity pattern of certain items of Assets & Liabilities as on 31.03.2014
Day 1
Deposits
Loans / Advances
Borrowings
8-14
days
15 - 28 29 days Over
Over
days 3 months 3 months 6 months
& upto & upto
6 months 1 year
Over
Over
1 year & 3 years &
upto
upto
3 years 5 years
1121.85 3606.81 1581.57 2559.17 30951.04 18293.83 31866.28 49032.30 1450.59

(274.93) (3719.67) (1407.96) (1712.06) (13806.01) (12203.72) (37987.12) (50684.90) (1313.77)
307.33
(347.77)
Investments
2-7
days
860.30
1886.75
1893.24 12322.53
6349.70
Over
5 years
Total
1381.67 141845.12
(685.42) (123795.58)
9811.65 44007.62 12744.96 17460.14 107644.20
(726.24) (1744.17) (1454.37) (9700.13) (6761.67) (10581.17) (40750.36) (11190.86) (15116.55) (98373.30)
29.74
709.61
390.82
(78.21)
(170.90)
(495.91)
135.18
5710.75
127.18
(8.43) (2925.65)
(119.99)
784.82
791.23
301.24
(420.80) (1919.67)
(888.52)
543.30
1887.37
623.90
(330.80) (1240.65) (2149.47)
1159.18
4918.46
6910.49 29643.70 45639.28
(622.24) (4407.73) (4590.43) (24201.07) (37795.48)

803.57
533.58
(203.39) (1180.36)
1300.10
1520.17 13185.09
(117.55) (2843.03) (11119.34)
Foreign
Currency Assets
507.09
(363.86)
32.88
(57.83)
44.25
(59.41)
100.08
(225.82)
528.10
768.88
(651.50) (1137.03)
4.59
(53.52)
0.00
(0.00)
0.00
(0.00)
0.00 1985.87
(0.00) (2548.97)
Foreign Currency
Liabilities
194.36
(56.94)
61.61
(82.97)
0.78
(28.65)
122.52
(221.30)
1544.49
262.59
(973.52) (1679.54)
118.85
(122.80)
70.77
(36.33)
160.64
(10.45)
0.00 2536.61
(0.00) (3212.50)
As compiled by the management and relied upon by the Auditors

1.7. Exposures
1.7.1 Exposure to Real Estate Sector
Category
As on
31st March-2014
a) Direct exposure
i)
Residential Mortgages Lending fully secured by mortgages
on residential property that is or will be occupied by the
borrower or that is rented;
Of which individual housing loans eligible in inclusion in priority sector
ii)
Commercial Real Estate Lending secured by mortgages on
commercial real estates (office buildings, retail space, multi-purpose
commercial premises, multi-family residential buildings, multi-tenanted
commercial premises, industrial or warehouse space, hotels,
land acquisition, development and construction etc.).Exposure would
also include non- fund based (NFB) limits.
(Fund based ` 2857.18 cr (` 2782.54 cr)+ Non fund based
` 128.27 cr ( ` 303.08 cr)
iii) Investments in Mortgage Backed Securities (MBS)
and other securitized exposures
a. Residential
b. Commercial Real Estate
b) Indirect Exposure
Fund based and non-fund based exposures to National Housing Bank
(NHB) and Housing Finance Companies (HFCs) (Fund based ` 1847.98 cr
(` 2954.18 cr)+ Investment ` 303.91 cr (` 308.42 cr)
Total Exposure to Real Estate Sector
205
( ` in Crore)
As on
31st March-2013
7918.77
5594.48
6532.23
5097.23
2985.45
3085.62
0.00
0.99
2151.89
13056.11
3262.60
12881.44
1.7.2 ] ] ]
31 \ 2014
(i) \/ \
]
(ii) // \ (/ ),
, \ \

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

(ix) ]
(x) ] ]
(] ])
] ] ]
1.7.3 ] ]*
(` )
31 \ 2013
165.75
108.82
250.16
0.18
0.48
0.26
0.00
122.00
0.03
11.41
0.00
0.00
0.00
0.00
0.00
50.00
0.00
0.00
226.61
693.03
196.95
439.62
(` )
\ 31, 2014
\ 31, 2013
] ()
] ()
(1)
1626.80
1088.54
( 2)
743.74
934.57
( 1)
216.40
122.39
( 2)
3.17
6.76
( 1)
6.99
8.87
\\ ( 2)
0.00
0.00
\\ ()
0.00
0.00
2597.10
2161.13
*
] 1% , : ]

206
1.7.2 Exposure to Capital Market

( ` in Crore)
Particulars
(i)
As on
31st March-2014
Direct investments in equity shares convertible debentures / bonds

and units of equityoriented mutual funds, the corpus of which is not
exclusively invested in corporate debt.
As on
31st March-2013
165.75
108.82
250.16
0.18
0.48
0.26
(iv) Advances for any other purposes to the extent secured by the collateral
security of shares or convertible bonds or convertible debentures or
units of equity oriented mutual funds, i.e., where the primary security
other than shares / convertible bonds / convertible debentures or units
of equity oriented mutual funds does not fully cover the advances.
0.00
122.00
(v)
0.03
11.41
0.00
0.00
(vii) Bridge loans to companies against expected equity flows /issues;
0.00
0.00
(viii) Underwriting commitments taken up by the bank in respect of primary

issue of shares or convertible bonds or convertible debentures or units
of equity oriented mutual funds.
0.00
0.00
50.00
0.00
226.61
196.95
693.03
439.62
(ii)
(iii)
Advances against shares / bonds / debentures or other securities or

on clean basis to individuals for investment in equity shares (including
IPOs/ESOPS), convertible bonds, convertible debentures and units of
equity oriented mutual funds.
Advances for any other purposes where shares or convertible bonds or
convertible debentures or units of equity oriented mutual funds are taken
as primary security.
Secured and unsecured advances to stockbrokers and guarantees

issued on behalf of stockbrokers and market makers.
(vi) Loans sanctioned to corporate against the security of shares / bonds /

debentures or other securities or on clean basis for meeting promoters
contribution to the equity of new companies in anticipation of
raising resources.
(ix) Financing to stock brokers for margin trading.

(x)
All exposures to venture capital funds (both registered and unregistered).
Total Exposure to Capital Market

1.7.3 Risk Category wise Country Exposure*
( ` in crore)
Risk Category
As on March 31, 2014

Exposure (net)
Insignificant (A1)
Provision held
As on March 31, 2013

Exposure (net)
Provision held
1626.80
NIL
1088.54
NIL
743.74
NIL
934.57
NIL
216.40
NIL
122.39
NIL
Moderate (B2)
3.17
NIL
6.76
NIL
Moderate High (C1)
6.99
NIL
8.87
NIL
High (C2)
0.00
NIL
0.00
NIL
Very High (D)
0.00
NIL
0.00
NIL
Low
(A2)
Moderately Low (B1)
Total
2597.10
2161.13
*based on categorization followed by Export and Credit Guarantee Corporation of India Ltd.,
The net funded exposure of the bank in respect of foreign exchange transactions with each country is within 1% of the total
assets of the Bank, hence no provision is required to be made as per RBI guidelines.
207
1.7.4. (]),
(])
(` )
] ] ]

--
--
--
--
--

]
1.7.5. , ]
( )
\ II ] ] ]
% ( %)
1.8
( )
2013-14
2012-13
231.00
518.00
67.00
(36.21)
0.15
0.15
2.3.1 \
\ \ ]
/ \
\
\ ]
\
, ,
]
\ \ ]
, , \ , 1972
\

2.3.2
] \
] ] \
] 29.09.1995 01.04.2010
\
] \
]
\ ]
01.04.2010 \ \
] , ] \
10%
]
]
1.9 ..
- - \
, 1949 46(4) ..
2.50 ( )
2. ]

2.1. 5- ,

]
... ]

2.2 9: ]
\ 17 (2)
/
]
2.3 - 15 \
01.04.2007 ]
-15 ()
208
2.3.3
\

\ ] \
10%
- \

2.3.4
\ /\ /
240
-
50% 120

]

2.3.5 ] - 15
()
] \
:-
2.3.1 Gratuity
Bank pays gratuity to employees who retire/resign
from Banks service as per rules. The Bank makes
contributions to the Trust, towards funding this gratuity,
payable every year. In accordance with the gratuity
funds rules, actuarial valuation of gratuity is done
every year. Actuarial valuation of gratuity liability is
calculated based on certain assumptions regarding
discount rate, salary growth, mortality and staff attrition
as per the projected unit credit actuarial method.
The gratuity payable to the employees is worked out
by way of two methodologies i.e., as per the Payment
of Gratuity Act, 1972 and other as per service rules
and the employee will be entitled to get most beneficial
amount.
2.3.2 Pension
Bank pays pension under a defined benefit plan
covering the employees who have opted for pension
and also to the employees joining the banks service
on or after 29.09.1995 but before 01.04.2010.The plan
provides for a pension on a monthly basis to these
employees on their cessation from the banks service
as provided for in Andhra Bank Employee Pension
Regulations. Pension Fund is managed by Andhra
Bank Employees Pension Fund Trust.
Employees who joined on after 01.04.2010 are entitled
to Defined Contributory Pension scheme where under
the employee will contribute 10% of pay and eligible
allowance with equivalent contribution being made by
the Bank and the same will be maintained as per the
guidelines issued by the Pension Fund Regulatory and
Development Authority.
2.3.3 Provident Fund
Bank is statutorily required to maintain a provident fund
as a part of its retirement benefits to the employees.
The fund is administered by a trust. Each employee
contributes 10% of their basic salary and eligible
allowances and Bank contributes an equal amount
to the fund in respect of non-pension optees. The
investment of the fund is made according to the
investment pattern prescribed by Government of India.
2.3.4 Leave Encashment
An employee is entitled to encash privilege leave
standing to his/her credit subject to a maximum of
240 days on the date of superannuation/Voluntary
Retirement/death and on resignation encashment of
privilege leave will be restricted to the tune of 50% of
privilege leave standing to the credit of the employee
subject to a maximum of 120 days.
Actuarial valuation of leave encashment liability is done
every year and accordingly, Bank is contributing to the
trust fund.
2.3.5 The summarized position of post-employment
benefits and long term employee benefits recognized
in the Profit & Loss Account and Balance Sheet as
required in accordance with Accounting Standard
15 (Revised) issued by the Institute of Chartered
Accountants of India are as under :
1.7.4 Details of Single Borrower Limit (SGL), Group

Borrower Limit (GBL) exceeded by the bank
(` in crores)
Name of the
borrower
Exposure
Limit
ceiling sanctioned
--
--
--
Period during
which limit
exceeded
--
Maximum
Amount
outstanding
during the
period
--
The bank has not exceeded the ceiling for Single Borrower
or Group Borrower wise exposures in any of the Group
accounts.
1.7.5. The amount of advances, for which intangible
securities, such as charge over the rights, licenses etc.,
have been taken as security is ` NIL cr (` NIL cr) and
the said advances have been classified as unsecured
forming part of Unsecured advances in Schedule Item
II-C. Such advances constitute NIL% (NIL%) of total
unsecured advances.
1.8 Amount of Provisions for Income-tax for the year
( ` in crore)
Particulars
Provision for Income Tax
Deferred Tax
Wealth Tax
2013-14
2012-13
231.00
518.00
67.00
(36.21)
0.15
0.15
1.9 Penalties imposed by Reserve Bank of India

Monetary Penalty to the tune of ` 2.50 Crore (previous
year NIL) has been imposed by Reserve Bank of India
under Section 46(4) of the Banking Regulation Act 1949
for deviation in implementation of KYC-AML guidelines
in the bank.
2. Disclosures in terms of Accounting Standards (AS)
issued by the Institute of Chartered Accountants of
India
2.1 Accounting Standard 5 Statement of profit or loss
for the period, prior period items
There is no material prior period item included in Profit
and Loss account which is required to be disclosed as
per the Accounting Standard issued by the Institute of
Chartered Accountants of India read with guidelines
issued by Reserve Bank of India.
2.2 Accounting Standard 9: Revenue Recognition
As mentioned in Accounting Policy (2) of Schedule 17
certain items are accounted on cash basis on account of
statutory/regulatory requirements and materiality.
2.3 ACCOUNTING STANDARD 15 EMPLOYEE BENEFITS
Bank has adopted Accounting Standard 15 (Revised)
issued by the Institute of Chartered Accountants of India
with effect from 01.04.2007
209
()
()
( ` )
(` )
\
\
() ()
()
2834.32
(2394.70)
230.15
(201.15)
177.85
(245.90)
*
*
(546.17)
(253.39)
*
*
(43.69)
(20.27)
\
48.90
(10.55)
(7.76)

494.36*
*

-157.54
*
*
(-123.64)
(-50.90)
(-33.58)

95.96
*
*
() (116.21)
(12.42)
(32.55)

3180.74
543.26
320.80
(2834.32)
(561.93)
(280.39)
* , \ ]
31.03.2014
- \\ ] ,
\ -
() ] \ :
( ` )
\
() ()
()

]
2841.90
561.83
283.35
\
(2400.13) (556.03)
(262.09
]
---]
269.57
47.00
26.00
/

(225.05)
(46.38)
(24.78)
368.03
30.00
36.00

(315.90)
(10.31)
(30.06)
-157.54
-65.33
-45.54

(-123.64) (-50.90)
(-33.58)

--- ()
(23.60)
(--)
(--)
]
3321.96
573.50
299.81
\ (2841.04) (561.83)
(283.35)
210
\
() ()
3180.74
(2834.32)
543.26
(561.93)
320.80
(280.39)

]
\
3321.96
(2841.04)
573.50
(561.83)
299.81
(283.35)
(-) 141.22
(-)30.24
20.99
()
( ` )
\
\
() ()
()
177.85
(245.90)
48.90
(10.54)
320.80
(7.75)
--
494.36
--
230.15
(201.15)
-(43.69)
-(20.27)
-269.57
(-225.05)
-47.00
(-46.38)
-26.00
(-24.78)

(/)
95.96
(92.61)
-(12.42)
-(32.55)
*328.05
(409.56)
**32.76
(53.28)
56.99
(35.80)

]
]

* 93.66
2012-13 ] 7.58
]
** \ 33
(a) Changes in the present value of the obligations:
(c) Amount recognized in Balance Sheet:
( ` in crore)
EMPLOYEE
BENEFITS
Present value
of obligation
as at the
beginning of
the year
Interest Cost
Current
Service Cost
Past Service Cost
Benefits Paid
PENSION
(Funded)
GRATUITY
(Funded)
LEAVE
ENCASHMENT
(Funded)
2834.32
(2394.70)
*
(546.17)
*
(253.39)
230.15
(201.15)
177.85
(245.90)
*
(43.69)
48.90
(10.55)
494.36*
*
(-50.90)
*
(12.42)
*
(20.27)
-157.54
(-123.64)
95.96
(116.21)
EMPLOYEE
BENEFITS
Estimated
Present Value
of Obligations
as at the end
of the year
(7.76)
*
*
(-33.58)
*
(32.55)
Actuarial loss/
(gain) on
obligations
Present value
3180.74
543.26
320.80
of obligation at
(2834.32)
(561.93)
(280.39)
year end
*Previously the valuation is obtained from the Actuary of
LIC, now when finalizing the result for the financial year
ended 31.03.2014 the liability under defined benefit plan
for gratuity and leave encashment have been funded based
on the estimate of liability given by Independent Actuary,
appointed by the Bank.
(b) Change in the Fair Value of Plan Assets:
(` in crore)
EMPLOYEE
PENSION
GRATUITY
LEAVE
BENEFITS
(Funded)
(Funded)
ENCASHMENT
(Funded)
Fair value of
Plan Assets at
2841.90
561.83
283.35
the beginning
(2400.13)
(556.03)
(262.09)
of the year
Acquisition
Adjustments
---Expected/Actual
269.57
47.00
26.00
Return on
(225.05)
(46.38)
(24.78)
Plan Assets
Employer's
368.03
30.00
36.00
contribution
(315.90)
(10.31)
(30.06)
Benefits Paid
-157.54
-65.33
-45.54
(-123.64)
(-50.90)
(-33.58)
Actuarial Loss/
---(gain) on
(23.60)
(--)
(--)
Obligations
Fair Value of
Plan Assets at
3321.96
573.50
299.81
the end of the
(2841.04)
(561.83)
(283.35)
year
PENSION
(Funded)
GRATUITY
(Funded)
(` in crore)
LEAVE
ENCASHMENT
(Funded)
3180.74
(2834.32)
543.26
(561.93)
320.80
(280.39)
Fair Value of
Plan Assets
as at the end
of the year
3321.96
(2841.04)
573.50
(561.83)
299.81
(283.35)
Net Liability
recognized in
Balance Sheet
(-) 141.22
(-)30.24
20.99
d) Expenses recognized in Profit & Loss Account:

(` in crore)
EMPLOYEE
PENSION
GRATUITY
LEAVE
BENEFITS
(Funded)
(Funded)
ENCASHMENT
(Funded)
Current Service
Cost
177.85
(245.90)
48.90
(10.54)
320.80
(7.75)
--
494.36
--
Interest Cost
230.15
(201.15)
-(43.69)
-(20.27)
Expected
return on
Plan Asset
-269.57
(-225.05)
-47.00
(-46.38)
-26.00
(-24.78)
95.96
(92.61)
-(12.42)
-(32.55)
*328.05
(409.56)
**32.76
(53.28)
56.99
(35.80)
Past Service Cost
Net Actuarial
(Gain)/ Loss
recognized
in the year
Total Expenses
recognized in
Profit & Loss
Account /
contributed
to funds
*Including unamortized amount of ` 93.66 crore towards

pension and adjustment of ` 7.58 crore being excess
of plan assets over obligation for the pension fund for the
financial year 2012-13
**includes unamortized amount of ` 33 cr towards gratuity
211
(.)

(` )
%
496.18
14.94
(503.72)
(17.73)
196.46
(173.00)
5.91
(6.09)
] 2517.84
75.80
(2078.86)
(73.15)
106.37
3.20
(81.41)
(2.86)
5.11
0.15
(4.91)
(0.17)
3321.96
100
(2841.90)
(100)
(]) \ ( )
(` )
/
01.04.2013
13.38

31.03.2014
18.64

(\) (
)

9.14
(8.12)
9.15
(8.00)
9.15
(8.00)
9.00
(9.00)
9.00
(9.60)
9.00
(9.60)
5.00
(4.00)
5.00
(4.00)
5.00
(4.00)
]
]
0.40 36.59
0.67
1.69
0.88
1.25

0.00 0.00 0.00
0.00

5.29 -0.01 13.66
0.21

(0.25) (-0.01) (10.20) (-0.07)

(^) \ :
0.00
-0.44
(0.49)
\
() () ()
%
%
%
,
\ ,

0.39 50.25
` 1.04
(1.04 )
( )
` 0.26
(0.28 )
2.3.6 : ( : ]
\ )
,
, ] \ ]
]
\) \
] : - ]
\
212
2010-11 ... . .
.80/21.04.018/2011-12 09 , 2011
\ \ \
3.50 . 10 \
\ ]
\ 31\, 2013
253.33 93.66 ]
1/5 33 , ] \
1/5 \
93.67 33.00

2.3.9 1 , 2012
.99.75 ( 50
)
(e) Investment details of Pension Fund Trust:
bonds. In case of gratuity and leave encashment the actual

return has been taken.
(` in crores)
% of investments
Description of investments
Amount
Central Government Securities
496.18
14.94
(503.72)
(17.73)
(` in crore)
State Government Securities
196.46
(173.00)
5.91
(6.09)
Investments in PSUs
2517.84
75.80
(2078.86)
(73.15)
LTC / LFC Silver Sick Ex-Gratia Relocation

Encashment Jubilee Leaves
Expenses
Award
13.38 0.40
36.59
0.67
1.69
106.37
3.20
(81.41)
(2.86)
5.11
0.15
(4.91)
(0.17)
3321.96
100
(2841.90)
(100)
Other Investments
Bank Balance
Total
Salary Increase: On the basis of past data.

(h) Other long term employees benefits (Un-Funded)
Liability as on
01.04.2013
Liability as on
31.03.2014
PENSION
(Funded)
(%)
GRATUITY
(Funded)
(%)
LEAVE
ENCASHMENT
(Funded) (%)
Discount Rate
9.14
(8.12)
9.15
(8.00)
9.15
(8.00)
Expected Rate
of Return on
Plan Assets
9.00
(9.00)
9.00
(9.60)
9.00
(9.60)
Expected Rate
of Salary
Increase
5.00
(4.00)
5.00
(4.00)
5.00
(4.00)
Projected
unit credit
Projected
unit credit
Projected
unit credit
Method Used
0.39
50.25
0.88
1.25
0.00
0.00
0.00
0.00
0.00
Amount debited
5.26 -0.01 13.66
to Profit &
(0.25) (-0.01) (10.20)
Loss Account
(i) Short term employees benefits:
0.21
(-0.07)
-0.44
(0.49)
Transitional
Liability
(f) Principal Actuarial assumption at the Balance Sheet

Date (expressed as weighted average):
ACTURIAL
ASSUMPTIONS
18.64
Short term Compensated Absences
(j) Contribution to Provident Fund
: ` 1.04 crore
(1.04 crore)
: ` 0.26 crore
(0.28 crore)
2.3.6 Prudential Regulatory treatment (reopening of

Pension option and enhancement of gratuity)
During the year 2010-11, the Bank opted for amortization
of additional liability arising on account of exercise of
second pension option by the employees and revision
of gratuity limit from ` 3.50 lacs to ` 10 lacs as per
the Payment of Gratuity Act over a period of five years
pursuant to permission given by Reserve Bank of India
vide its circular no. DBOD.BP.BC.80/21.04.018/2010-11
dated 09th of February, 2011. Out of the aggregate carried
forward amount of ` 253.33 cr., as on 31st March, 2013
an amount of ` 93.66 cr., being 1/5th of the additional
pension liability and ` 33 cr., being 1/5th of additional
liability on account of gratuity has been charged off to the
Profit and Loss Account for the current year and balance
amount of ` 93.67 cr. and ` 33.00 cr. has been carried
forward.
The estimate of future salary increase, considered in

actuarial valuation, takes into account the inflation, seniority,
promotion and other relevant factors, such as supply and
demand in employee market.
(g) The financial assumptions considered for the
calculations are as under:Discount Rate: - The discount rate has been chosen by
reference to market yield on government bonds as on the
date of reporting.
2.3.7 Provision of ` 99.75 crore (previous year ` 50 cr) has

been made towards wage revision arrears effective from
1st November, 2012 pending wage negotiation.
Expected Rate of Return: In case of pension, the expected

rate of return is taken on the basis of yield on government
213
3.
( 17) ( )

(i)
-17 .. - , ] \,
/ , \ /

(ii)
] ]
(iii)
] ]
- \

( )

2013-14
2012-13
.
1
]
() ]
3,680.66
2,795.00
() /
6,268.65
6,303.72
()
4,676.08
3,768.65
() \
1,004.77
1,089.74
15,630.16
13,957.11
- ]
\
15,630.16
13,957.11
2

() ]
649.99
554.16
() /
1,107.03
1,249.82
()
825.78
747.20
() \
177.44
216.05
2,760.24
2,767.23

2,026.51
996.16

733.73
1,771.07

298.15
481.94

435.58
1,289.13
3

() ]
45,356.62
37,632.40
() /
68,321.06
64,195.44
()
38,347.04
33,020.84
() \
976.10
1,157.02
.)
14,340.11
10,293.24

167,340.93
146,298.94
4

() ]
2,067.07
2,920.53
() /
66,105.94
44,465.45
()
74,477.22
63,206.53
() \
1,261.97
16,123.60
.)
14,691.28
11,141.65
158,603.48
137,857.76
]
8,737.45
8,441.18

167,340.93
146,298.94
214
3. SEGMENT REPORTING (AS 17) (Compiled by the management and relied upon by the auditors)
Note on Segment Results
(i) As per guidelines of RBI on compliance with Accounting Standards AS-17, Bank has adopted Treasury Operations,
Corporate/Wholesale Banking, Retail Banking and Other Banking Operations as Primary business segments and
Domestic Segment as secondary / geographic segment.
(ii) Segment revenue represents revenue from external customers.
(iii) Results of various segments are arrived at in the proportion of revenue of respective segments
Geographic segments:The Bank does not have any branches outside India, the only reportable Geographical segment is of domestic operations,
and hence no separate disclosure is made.
Business segments
(` in crore)
Sl.No Business Segments
2013-14
2012-13
1
Segment Revenue
(a) Treasury
3,680.66
2,795.00
(b) Corporate/Wholesale Banking
6,268.65
6,303.72
(c) Retail Banking
4,676.08
3,768.65
(d) Other Banking Operations
1,004.77
1,089.74
Total
15,630.16
13,957.11
Less: Inter Segment Revenue
Income from Operations
15,630.16
13,957.11
2
Segment Results
(a) Treasury
649.99
554.16
1,107.03
1,249.82
(c) Retail Banking
825.78
747.20
177.44
216.05
Total
2,760.24
2,767.23
Less : Other Un-allocable Expenditure
2,026.51
996.16
Total Profit Before Tax
733.73
1,771.07
Income Tax and other taxes paid
298.15
481.94
Net Profit
435.58
1,289.13
3
Segment Assets
(a) Treasury
45,356.62
37,632.40
68,321.06
64,195.44
(c) Retail Banking
38,347.04
33,020.84
976.10
1,157.02
(e) Un-allocable Assets
14,340.11
10,293.24
Total Assets
167,340.93
146,298.94
4
Segment Liabilities
(a) Treasury
2,067.07
2,920.53
66,105.94
44,465.45
(c) Retail Banking
74,477.22
63,206.53
1,261.97
16,123.60
(e) Un-allocable Liabilities
14,691.28
11,141.65
Total
158,603.48
137,857.76
Capital & Reserves
8,737.45
8,441.18
Total Liabilities
167,340.93
146,298.94
215
4.
()
( 18)

i) \
()
i)
..], (11-12-2013
)
ii)
.. , (31-08-2013 )
iii)
.. ,
iv)
.. ,
()
i)
ii)
() \
iii)
()
()

:
..]
( )
2013-14
2012-13
(11.12.2013 )

(31.08.2013 ))

5,18,271
--
13,42,594
19,03,171
19,56,814
15,33,812
17,06,525
7,14,275
-18 \ 9 ] ]
] ] ,
(i) ] - () \ - 138.72 (133.77 ) ()
.28.40 (.28.40 )
5.
] (10/- ) ( 20)
2013-14
2012-13
..
7.67
23.04
...
7.67
23.04
( ) ( )
435.58
1289.13
. ( )
56.79
55.95
7.67
23.04
...
216
4. RELATED PARTY DISCLOSURES (AS 18)
(b) Subsidiary
Names of the Related Parties and their relationship
Andhra Bank Financial Services Ltd.,
with the Bank
(c ) Associate
(a) The Bank has identified the following persons to be

the Key Management Personnel as per the Accounting
Standard
i)
Chaitanya Godavari Grameena Bank

(d) Joint Ventures
i)
Shri C. VR. Rajendran, Chairman and Managing

Director (From 11-12-2013)
India First Life Insurance Company Ltd.,
ii) India International Bank (Malaysia) Bhd.

iii) ASREC India (P) Ltd.,
ii) Shri B. A. Prabhakar, Chairman and Managing Director

(upto 31-08-2013)
iii) Shri K.K. Misra, Executive Director
iv) Shri S K Kalra, Executive Director
(Amount in `)
Transactions with Related parties:Sl. No

1
Name
Relationship
Nature of transaction
2013-14
2012-13
Sri C VR Rajendran
Chairman &
Remuneration
5,18,271
--
Remuneration
13,42,594
19,03,171
Managing Director
(From 11.12.2013)
2
Sri.B A Prabhakar
Chairman &
Managing Director
(Upto 31.08.2013)
Sri K.K.Misra
Executive Director
Remuneration
19,56,814
15,33,812
Sri S K Kalra
Executive Director
Remuneration
17,06,525
7,14,275
The transactions with the Subsidiary and Associate Banks have not been disclosed in view of para 9 of the AS-18 on Related
Party Disclosures, which exempts State Controlled enterprises from making any disclosure pertaining to their transactions
with other related parties which are also state controlled.
iv) Capital invested in Joint Venture -India International Bank (Malaysia) Bhd ` 138.72 cr ( ` 133.77 cr), ASREC India (P)
Ltd., ` 28.40 cr (` 28.40 cr)
5.
EARNING PER SHARE (Face Value ` 10/- each) (AS 20)
Particulars
2013-14
2012-13
Basic EPS `
7.67
23.04
Diluted EPS `
7.67
23.04
Net Profit (` in crore) (excluding extra ordinary items, net of taxes)
435.58
1289.13
Weighted Average No. of Shares (in crore)
56.79
55.95
Basic Earnings per Share `
7.67
23.04
Calculation of Basic E P S
217
6. ( 22)
6.1. 31.03.2014 :( )
\ 31, 2014 \ 31, 2013

(1) ,
50.98
16.31

(2) - , 1961
5.13
11.54

/
3)
43.05
- 82.09
\

329.70
(4) , 1961
36(1) (viii)
]
(5)
57.76
\
50.98 435.64
27.85 82.09
6.2
10
10.1
.. . . .77/21.04.018/201314, .20.12.2013 , - ,
1961 36(i)(viii) ] ]
31 \, 2013 ] 263.4 2
-
6.2
- , 1961 36(i)(viii)
2013-14 66.28
- ()

7.
\ (-24)
2013-14 , \
]
\

8.
] ( 28)
28 8 10 \ - ]
( ]) ]\
\ -
]
9.
,
( 29)
\ 12 /\/
^, , ,
, ] ,
\ ( )
218
( )
/
2013-14
2.10
2012-13
2.24
0.07
0.16
0.13
0.30
2.04
2.10
( )

2013-14
2012-13

-
(i)
188.66
97.35
(ii) ]
1477.17
615.12
(iii)
197.00
177.00
(iv)
231.15
518.15
(v)
67.00
(36.21)
(v) :
)
50.00
42.28
)
113.68
64.41
2324.66
1478.10
10.2 (- { )
( )
2013-14
2012-13

38.06
38.06
]
-- (-
12.06
- )*

26.00
38.06
*\ . . .95/21.04.048/2013-14, .7
, 2014 , 31.03.2013
32 % , ]
12.06
, 6.2 ]
]
10.3 ]

)
()
)
21
) 87192
)
()
) ]
1
)

) 86481 )
)
732 )
1

6.
Accounting for taxes on income (AS 22)
6.1 The major components as on 31.03.2014 are as follows:
Particulars
(` in crore)
Opening balance
Provided during the Year
Timing Difference
31st March-2014 31st March-2013

DTA
DTL
DTA
DTL
(1) Provision created in books
50.98
16.31
but not claimed
as deduction
(2) Excess/Less Depreciation
5.13
11.54
claimed as per Income
Tax Act, 1961
3) On account of amortization
43.05
- 82.09
of additional liability due
to re-opening of pension
option and revision in
ceiling of gratuity
(4) On account of Special Reserve
329.70
created under section 36 (1)
(viii) of Income Tax Act,1961
(5) On account of pension and
57.76
gratuity fund contributed
Total
50.98 435.64
27.85 82.09
6.2 In accordance with RBI circular no. DBOD.No.BP.
BC.77/21.04.018/2013-14 dated 20th December, 2013,
the Bank has created Deferred Tax liability of ` 263.42
cr on Special Reserve as at 31st March 2013 under
Section 36 (1)(viii) of the Income tax Act, 1961, by
debiting Revenue Reserves.
6.3 Provision for Deferred Tax liability (DTL) on deduction
claimed under Section 36(1)(viii) of the Income tax Act,
1961 has also been made amounting to ` 66.28 cr
during the financial year 2013-14.
7. Discontinuing operations (AS-24)
During the financial year 2013-14, the bank has not
discontinued the operations of any of its branches, which
resulted in shedding of liability and realization of the assets
and no decision to discontinue an operation which will have
the above effect has been finalized.
8. Impairment of Assets (AS 28)
The indications listed in paragraphs 8 to 10 of Accounting
Standard 28Impairment of Assets (issued by the ICAI )
have been examined and on such examination, it has been
found that none of the indications are present in the case
of the bank. A formal estimate of the recoverable amount
has not been made, as there is no indication of a potential
impairment loss.
9. PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS (AS 29)
Contingent liabilities mentioned in Schedule 12 are
dependent upon the outcome of Court/arbitration/out of
Court settlements, disposal of appeals, the amount being
called up, terms of contractual obligations, devolvement and
raising of demand by concerned parties as the case may be.
Movement of provisions for liabilities (excluding provision
for others)
(` in crore)
Legal cases/contingencies
2013-14
2012-13
2.10
2.24
0.07
0.16
Amounts used during the year

Closing balance
Timing of outflow/
uncertainties
0.13
2.04
Outflow on
Settlement/
crystallization
0.30
2.10
Outflow on
Settlement/
crystallization
10 Other disclosures
10.1 PROVISIONS AND CONTINGENCIES
(` in crore)
Breakup of Provisions and
2013-14
2012-13
Contingencies shown under
the head Expenditure in
Profit and Loss Account
(i) Depreciation in value of Investments
188.66
97.35
(ii) Non Performing Assets
1477.17
615.12
(iii) Standard Assets
197.00
177.00
(iv) Taxes
231.15
518.15
(v) Deferred Tax
67.00
(36.21)
(vi) Other provisions and
contingencies:
a) Restructured advances
50.00
42.28
b) Other provisions
113.68
64.41
TOTAL
2324.66
1478.10
10.2 FLOATING PROVISIONS (Countercyclical
provisioning buffer)
(` in crore)
Particulars
2013-14
2012-13
Opening balance
38.06
38.06
--Reduction during the year
12.06
-(Purpose and amount of
drawdown made)*
Closing balance
26.00
38.06
*Pursuant to the notification no. DBOD.
No.BP.95/21.04.048/2013-14 dated February 7, 2014
Bank decided to utilize 32 per cent of floating provision
held as on March 31, 2013 and accordingly utilized `
12.06 cr for making provisions specific provisions on non
performing assets
There is no drawdown from the reserves during the year,
other than the utilization of revenue reserve as mentioned
in note 6.2 above.
10.3 Disclosure of complaints and unimplemented
awards of Banking Ombudsman
a) Customer complaints
b) Awards passed by the Banking
(in numbers)
Ombudsman (in numbers)
a) Pending at the
21 a) Unimplemented at the
1
beginning of the year
b) Received during 87192 b) Passed by the Banking
the year
Ombudsman during the year
Nil
c) Redressed during 86481 c) Implemented
Nil
the year
during the year
d) pending at the end 732 d) Unimplemented at the
1
of the year
end of the year
219

80510, 65, ]/ 2834,
54, 1901 ( ), 411 ( )
1417 .31.03.2014
] \], 120
333 ] 0.15
10.4. ] \ :
31.03.2014 , 1040 (1089 )
\ /- ] ]
4140.78 . (3804.17 ) 31.03.2014
\ 1968.22 (2358.57 )
\ :
() \
.13.08.2010 {
^
25%
40% { 35% {
, ,
80.00
(] 320 ] 25% )
]
() \ ]
]
.05.08.2010 \ \ ]
\ /\ ]
.31.03.2014
() \ ]
80.00 ]
10 80,00,000
]

320 ]
] \
80.00
10.5 ]
1
( )
3

@ ]
, /,
@ ]
\

(4) (3)
(%)
1734.06
4094.47
2368.11
2368.11
115.95
431.89
2028.19
1017.30
1017.30
115.95
24.91
49.53
42.96
42.96
100.00
1215.91
1215.91
100.00
31.03.2014 *
1
2

(++)
a < 1
b 1-3
c >3

29.05 +
1186.86
7044.44
3675.99
52.18
5
(
] II
] )
26.00
6
]/]
]
7
\

8
7044.44
3701.99
52.55
9
] #
52.55%
* - ] ] .. - (
)
@ / - ] \
4
# + + \ ]/] +
/ +
220
The total complaints received during the year include 80510

number of complaints for ATM, 65 for Credit Card 2834
for RTGS/NEFT, 54 for Pension, 1901 for SMS upset, 411
for Banking Ombudsman and 1417 General complaints.
The number of good faith chargebacks, i.e., complaints
received after 120 days, raised on other Banks stood at
333 as on 31-03-2014 amounting to ` 0.15 cr.
10.4. Disclosure of Letters of Comfort (LoC) issued
by the Bank:
During the year ended 31.03.2014, 1040 (1089) Letters
of Comfort/Letter of Undertaking have been issued by
the bank amounting to ` 4140.78 cr (` 3804.17 cr). The
Letters of Comfort outstanding as on 31.03.2014 are
amounting to ` 1968.22 cr (` 2358.57 cr).
Letter of Comfort on behalf of Joint Venture
The Bank has formed a joint venture Bank in Malaysia
with joint venture partnership of Bank of Baroda and
Indian Overseas Bank on 13.08.2010 in the name of
INDIA INTERNATIONAL BANK (MALAYSIA) BHD.
Andhra Banks share of joint venture is 25% and 40% by
Bank of Baroda and 35% from Indian Overseas Bank.
Reserve Bank of India and Government of India, Ministry

of Finance, Department of Financial Services have
accorded approvals for the Bank for infusing capital funds
equivalent to Malaysian Ringgit 80.00 Mio (being 25% of
total paid up capital of Malaysian Ringgit 320 Mio).
For the purpose of fulfillment of capital requirements of
its joint venture India International Bank (Malaysia) Bhd,,
Andhra Bank has issued a Letter of Undertaking and a
Letter of Comfort on 05.08.2010 favoring Bank Negara
Malaysia. The financial impact on such LOC/LOU is limited
to the extent of Andhra Banks share of capital contribution.
As on 31.03.2014, Andhra Banks contribution to equity
capital of India International Bank (Malaysia) BHD is
Malaysian Ringgit 80.00 Mio representing 80,00,000 fully
paid equity shares of Malaysian Ringgit 10 per share. The
rupee equivalent of such capital contribution is included
under the head Investments in Subsidiaries and Joint
Ventures by the Bank.
Thus, the Bank has fully remitted Malaysian Ringgit 80.00
Mio under the Letter of Comfort issued, towards its share
in the paid up capital of Malaysian Ringgit 320.00 Mio.
10.5 Provisioning Coverage Ratio

1
3
Gross NPA@ plus technical /
prudentialwrite-off as on
31.03.2014 *
1
2
4
Specific Provisions held including
provisions for diminution in fair
value of the restructured accounts
classified as NPAs plus technical /
prudential write-off @
431.89
2028.19
1017.30
894.94
115.95
(` in crore)
5
Ratio of
(4) to (3)
(%)
Sub-Standard Advances
1734.06
24.91
Doubtful Advances (a+b+c)
4094.47
49.53
a < 1 year
2368.11
42.96
b 1-3 Years
1610.41
55.57
c >3 years
115.95
100.00
3
Advances classified as
Loss Assets 29.05 +
1215.91
1215.91
100.00
Technically Writtenoff 1186.86
4
Total
7044.44
3675.99
52.18
5
Floating Provisions for
Advances (only to the extent
they are not used as Tier II
Capital)
26.00
6
DICGC / ECGC claims
received and held pending
adjustment
7
Part payment received and
kept in Suspense Account or
any other similar account
8
Total
7044.44
3701.99
52.55
9
Provisioning Coverage Ratio#
52.55%
*Technical or prudential write off is the amount of nonperforming loans which are written of at branches and loans which are
outstanding in the books of the branches but have been written off (fully or partially) at Head Office level.
@ Specific provisions held including provisions for diminution in fair value of the restructured accounts classified as NPAs
plus technical/prudential write off.
# Total provisions held on NPAs + Floating Provision + DICGC/ ECGC claim amount considered for calculating NPA + anount
technically written off/ Gross NPA + amount technically written off.
221
10.6 -
- 5.61 (6.43
) - - -] 7.22
(5.46 )
10.7 ], , ]
10.7.1 ] :
( )
20 ] ]
] 20 ]
]
10.7.2
20
20
10.7.3 ]
/ ]
20 / ]
10.7.4. ]
10.8 -
.
.
31 \ ( -)
( )
20136.93
(17673.68)
13.17
(17.64)
10.47
(16.84)
( )
1004.02
(1021.11)

2.75 (2.47)
( , )
6.59 ( 4.61)
4.57 (3.59)

1.83 (1.88)
10.9

1 , 2013
3714.49
] ( )
2832.35
-] ()
6546.84
:102.82
(i)
(ii) ( )
323.54
(iii) /
233.32
(iv) (iii)
29.56
-] ()
689.24
31 \, 2014 (-)
5857.60
1
2
3
4
1186.86
2012-13
819.84
319.73
1139.57
76.89
1062.68
10.10 { , ]
( )
20731.92
(17727.88)
20 / ]
\\ \ ]
16669
(15929)
11.75
(12.87)
2013-14
/
1062.68

/
233.32
]
-] ()
1296.00
/
109.14
()
222
( )
10.11] (]
] )
]
10.12 31 \, 2014 ]
] \
10.13.

, 2011-12 ,
] / , 522.13
( 656.65 )

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

.195 (
310 ) \-2
V
10.15 \
\ \ (
)
10.16 , ] , \
/ /

10.6 Bancassurance business

The Bank has received ` 5.61 cr ( ` 6.43 cr) as fee from
Bancassurance Life and ` 7.22 cr ( ` 5.46 cr) as fee
from Bancassurance Non Life.
Percentage of Advances to twenty largest

borrowers to Total Advances of the bank
(` in crore)
16669(15929)
11.75(12.87)
1062.68
819.84
233.32
319.73
1296.00
1139.57
Less Recoveries made from previously

technical/prudential write-off
Accounts during the year (B)
109.14
76.89
Closing balance as at March 31 (A-B)
1186.86
1062.68
(` in crore)
(` in crore)
20136.93
(17673.68)
13.17
(17.64)
Particulars
Amount
Total Assets
NIL
Total NPAs
NIL
Total Revenue
NIL
10.11 Off-balance Sheet SPVs sponsored (which are required to be

consolidated as per accounting norms):
(` in crore)
20731.92
(17727.88)
10.47
(16.84)
Name of the SPV sponsored

Domestic
Overseas
Nil
Nil
10.12 Reconciliation of Inter Branch and Inter Bank

transactions have been done up to 31st March 2014.
10.13 Provision for Income Tax has been made on the basis of
the applicable laws and various judicial pronouncements
available. In view of judicial pronouncements in similar
cases, no additional provision is considered necessary
towards disputed tax demands of ` 522.13 crore
(`656.65 cr ) upto assessment year 2011-12 for which
assessments are completed/appealed. Amounts paid
by the bank/adjusted by the department on account of
the said disputed tax demands have been included in
tax paid in advance/tax deducted at source (item III of
Schedule 11 Other Assets):
10.14 The Bank has been claiming deduction under Section
36(1)(viii) of the Income tax Act, 1961 in respect of the
profits derived out of eligible business as specified in the
said section and has accordingly transferred a sum of
`195 cr (previous year ` 310 Cr) to the corresponding
Special Reserve account maintained under the said
section and the same is shown under Item V of Schedule
-2 Reserves and Surplus.
10.15 Credit Default Swaps:
The Bank has not entered into Credit Default Swaps
during the current Financial Year (previous year NIL).
10.16 Previous year figures have been regrouped/
reclassified / rearranged wherever necessary to conforn
to current years figures. Figures in the brackets indicate
figures of previous year.
10.7.4. Concentration of NPAs

Total Exposure to top four NPA accounts
2012-13
10.10 Overseas Assets, NPAs and Revenue
10.7.3 Concentration of Exposures

Total exposure to twenty largest
borrowers/customers
Percentage of exposures to twenty largest
borrowers/customers to total exposure of the bank
on borrowers/customers
Opening balance of Technical/Prudential

Written off Accounts
Sub-Total (A)
10.7.1 Concentration of Deposits:
Total Advances to twenty largest borrowers
2013-14
Add Technical/Prudential write-offs

during the year
10.7 Concentration of Deposits, Advances, Exposures

and NPAs
Total Deposits of twenty largest depositors

Percentage of Deposits of twenty largest depositors
to Total Deposits of the bank
10.7.2 Concentration of Advances
Particulars
(` in crore)
1004.02
(1021.11)
10.8 Sector-wise NPAs

Sl. Sector
No.
Percentage of NPAs
to Total Advances in
that sector
1 Agriculture & allied activities
2.75 (2.47)
2 Industry (Micro & Small, Medium and Large)
6.59 ( 4.61)
3 Services
4.57 (3.59)
4 Personal Loans
1.83 (1.88)
10.9 Movement of NPAs
Particulars
Amount in ` Crore
Gross NPAs as on 1st April ,2013
3714.49
Additions (Fresh NPAs) during the year
2832.35
Sub-total (A)
6546.84
Less:(i) Up gradations
102.82
(ii) Recoveries (excluding recoveries made from
323.54
upgraded accounts)
(iii) Technical/Prudential Write offs
233.32
(iv) Wirte offs other than those (iii) above
29.56
Sub-total (B)
689.24
Gross NPAs as on 31st March , 2014 (A-B)
5857.60
223
31 \, 2014
(` in 000)
31.03.2014

/
\

]
] - ]

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

\ ()

\ () /
()

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

31.03.2013

6405,86,71
9440,59,85

8645,58,77
6405,86,71
3034,73,14
(2239,72,06)
733,72,04
89,97,14
279,21,59
60,39
1102,30,38
1771,07,32
83,62,41
279,21,40
47,87
2133,43,26
18049,54,29
2065,75,55
(7724,22,45)
(9270,89,92)
(470,64,81)
627,33,28
4379,16,32
(642,18,37)
3736,97,95
17944,36,28
2878,78,16
(8003,49,27)
(15150,32,36)
(393,15,33)
35,18,66
(555,20,60)
(963,52,99)
(1518,73,59)
(219,81,15)
(219,81,15)
(84,07,37)
(84,07,37)
200,00,00
(279,21,59)
(403,22,07)
(482,43,66)
3034,73,14
(279,21,40)
(357,69,70)
(636,91,10)
(2239,72,06)
... \
.

004453S
:004137S
:310100E
( )
( . )
( . )
(.. 028224)
(.. 205869)
(.. 208606)

:108959W
:312063E
( )
( )
:
(.. 104659)
: 09.05.2014
(..050395)
224
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014

(` in 000s)
For the year
ended
31.03.2014
For the year

ended
31.03.2013
Opening balance of Cash and Cash equivalents
6405,86,71
8645,58,77
Closing balance of Cash and Cash equivalents
9440,59,85
6405,86,71
Net Increase(+) / Decrease (-) of Cash and Cash

equivalents during the period
3034,73,14
(2239,72,06)
733,72,04
1771,07,32
89,97,14
83,62,41
279,21,59
279,21,40
60,39
47,87
1102,30,38
2133,43,26
18049,54,29
17944,36,28
2065,75,55
2878,78,16
Particulars
Cash Flow from Operating Activities

Net Profit before tax
Add: Depreciation on Assets
Add: Interest on Subordinated Debt
Less: Profit on Sale of Assets
Operating Profit before changes in Operating Assets and Liabilities
Adjustment for Changes in Operating Assets and Liabilities
Increase / (Decrease) in Deposits
Increase / (Decrease) in Borrowings
(Increase) / Decrease in Investments
(7724,22,45)
(8003,49,27)
(Increase) / Decrease in Advances
(9270,89,92)
(15150,32,36)
(470,64,81)
(393,15,33)
627,33,28
35,18,66
Cash Generated from Operations
4379,16,32
(555,20,60)
Taxes Paid
(642,18,37)
(963,52,99)
Cash Flow from Operating Activities (A)
3736,97,95
(1518,73,59)
(Purchase) / Sale of Fixed assets
(219,81,15)
(84,07,37)
Cash Flow from Investing Activities (B)
(219,81,15)
(84,07,37)
200,00,00
(Increase) / Decrease in Other Assets

Increase / (Decrease) in Other Liabilities and Provisions
Cash Flow from Investing Activities
Cash Flow from Financing Activities

Equity Capital including Premium
Interest on Subordinated Debt & Others
(279,21,59)
(279,21,40)
Dividend paid (including tax on dividend)
(403,22,07)
(357,69,70)
Cash Flow from Financing Activities (C)
(482,43,66)
(636,91,10)
Net Increase (+) / Decrease (-) in Cash flow during the period (A)+(B)+(C )
3034,73,14
(2239,72,06)
C.VR.RAJENDRAN
S.K.KALRA
Executive Director
T.V.S. Chandrasekhar
General Manager
Y. Amarnath

FRN:004453S

FRN:004137S
FOR PATRO & CO

FRN:310100E

PARTNER (M.NO. 028224)
(CA R.PRAKASH)

Place: Hyderabad
Date: 09-05-2014
FOR C R SAGDEO & CO

FRN:108959W

FRN:312063E
(CA ANOOP C SAGDEO)

PARTNER (M.NO.104659)

225

,

1. 31 \ 2014
31 \ 2014

\
, 20
985
] ,
\ { ]
1109 , ]
,
7.85 %, ] 21.61%, ]
5.50% ] 20.19% -

2. , 1949
] ,

\,

3.
]

\ ]

4.
]\
\

] ]

\ \
\

] ,
\
]
6.
a) ) .. ..77/21.04.018/2013-14 .20
2013 .31.03.2013
1961 36(i) (viii) ]
]
, \ . 18 . 6.2.

7. , ] ,
]
(i) , \ \

31 \ 2014
]
(ii)

, ;
(iii) \

8. , 1949
\
9. 1 5
( ) , 1980

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

10. ,

5.

-004453
-004137
--310100
( )
( .)
( . )
^ (.. 028224)
^ (..205869)
^ (..208606)

-108959
- 312063
( )
( )
:
^ (..104659)
^ (..050395)
: 09.05.2014
226
5. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit
opinion.
Emphasis of Matter:
6. We draw attention to:
a) Note No: 6.2 of Schedule No. 18, Notes on Accounts to the
Financial Statements in respect of Accounting treatment
given effect to for creation of Deferred Tax Liability on
Special Reserve under Sec 36(1)(viii) of Income Tax
Act, 1961 as at 31-3-2013, pursuant to RBI Circular No.
BP.BC.77/21.04.018/2013-14 dated December 20,2013.
Our opinion is not qualified in respect of the above.
Opinion
7. In our opinion, as shown by books of the Bank, and to the
best of our information and according to the explanations
given to us:
(i) the Balance Sheet, read with the notes thereon is a full and
fair Balance Sheet containing all the necessary particulars,
is properly drawn up so as to exhibit a true and fair view
of state of affairs of the Bank as at 31st March, 2014 in
conformity with accounting principles generally accepted
in India;
(ii) the Profit and Loss Account, read with the notes thereon
shows a true balance of Profit, in conformity with
accounting principles generally accepted in India, for the
year covered by the account; and
(iii) the Cash Flow Statement gives a true and fair view of the
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have
been drawn up in Forms A and B respectively of the
Third Schedule to the Banking Regulation Act, 1949.
9. Subject to the limitations of the audit indicated in
paragraph 1 to 5 above and as required by the Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1980, and subject also to the limitations of disclosure
required therein, we report that:
(a) We have obtained all the information and explanations
which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found
them to be satisfactory.
(b) The transactions of the Bank, which have come to our
notice, have been within the powers of the Bank.
(c) The returns received from the offices and branches of the
Bank have been found adequate for the purposes of our
audit.
10.In our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement comply with the applicable
accounting standards.
INDEPENDENT AUDITORS REPORT

To
The President of India
Report on the Financial Statements
1. We have audited the accompanying financial statements
of Andhra Bank as at 31st March, 2014 which comprise the
Balance Sheet as at 31st March, 2014 and Profit and Loss
Account and the Cash Flow Statement for the year then
ended, and a summary of significant accounting policies
and other explanatory information. Incorporated in these
financial statements are the returns of 20 branches audited
by us and 985 branches audited by Branch Auditors.
The branches audited by us and those audited by other
auditors have been selected by the Bank in accordance
with the guidelines issued to the Bank by the Reserve
Bank of India. Also incorporated in the Balance Sheet
and Profit and Loss Account are the returns from 1109
branches which have not been subjected to audit. These
unaudited branches account for 7.85 per cent of advances,
21.61 per cent of deposits, 5.50
per cent of interest
income and 20.19 per cent of interest expenses.
Managements Responsibility for the Financial Statements
2. Management is responsible for the preparation of these
financial statements in accordance with the Banking
Regulation Act, 1949. This responsibility includes the
design, implementation and maintenance of internal
controls relevant to the preparation of the financial
statements that are free from material misstatement,
whether due to fraud or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on these
financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
on the auditors judgement, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal controls
relevant to the Banks preparation and fair presentation
of the financial statements in order to design audit
procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of
the accounting estimates made by management, as well
as evaluating the overall presentation of the financial
statements.
Chartered Accountants FRN-004453S

Chartered Accountants FRN-004137S
(CA R.PRAKASH)
For C.R.SAGDEO & CO

Chartered Accountants FRN-108959W
(CA ANOOP C SAGDEO)
For PATRO & CO

Chartered Accountants FRN-310100E

Chartered Accountants FRN- 312063E
Place: Hyderabad
Date: 09.05.2014
227
- {
( )
1969 *
1980 **
\-11
155
627
1632
1712
1867
2114
155
754
2676
2821
3125
4009
2163
7585
14098
15099
16523
18725
0.06
1267
1345
1289
436
52
666
92156
105851 123796
141845
35
356
71435
83642
98373
107644
16
170
24210
29656
37795
45639
0.5
560
560
560
590
0.4
4.9
5933
6920
7882
8148
58
708
108901
124964 146299
167341
128
23082
27027
#
$
*
**
228
\-12 \-13
35132
\-14
41293
OUR PROGRESS AT A GLANCE

(` Crore)
Year / Parameters
1969 *
1980 **
Mar-11
Mar-12
Mar-13
Mar-14
No of Branches
155
627
1632
1712
1867
2114
No of Business Delivery Channels
155
754
2676
2821
3125
4009
Staff Strength
2163
7585
14098
15099
16523
18725
Net Profit
0.06
1267
1345
1289
436
Total Deposits
52
666
92156
105851
123796
141845
Net Advances #
35
356
71435
83642
98373
107644
Investments $
16
170
24210
29656
37795
45639
Capital
0.5
560
560
560
590
Reserves & Surplus
0.4
4.9
5933
6920
7882
8148
Working Funds
58
708
108901
124964
146299
167341
128
23082
27027
35132
41293
Priority Sector Advances

# Net of Provisions
$ Pre Depreciation
* Year of Nationalisation of Banks

** Year of Nationalisation of Andhra Bank
229
-
\ 2014
(%)
\ 2013
(%)
]
1. ] ] - -II
( - 9%)
11.18
11.76
3.20
4.02
38.94
29.47
88.04
87.62
3.11
2.45
3. -
24.25
19.33
4.
94.71
96.29
2.00
1.65
1. ]
78.02
80.94
2.
14.38
17.07
3. ( )
1223.35
1222.40
4. \ ( )
2.33
7.80
1. -]
8.53
7.50
2.
0.29
0.99
3. ] ]
2.76
3.21
4.
45.56
42.40
5. ] - +
27.27
26.79
6. ]
11.22
12.02
7. - ]
8.05
7.97
8. \
1.82
2.12
23.86
22.54
0.31
0.43
27.10
25.72
2. ]
3.

1.
2.
5.

\
1.
2.
3.
230
KEY PERFORMANCE RATIOS

March 2014
March 2013
(%)
(%)
Capital Adequacy
1.
Capital to Risk Assets Ratio (CRAR) Basel II

(prescribed norm by RBI: 9%)
2.
Coverage Ratio
3.
Net NPAs to Net Worth
11.18
11.76
3.20
4.02
38.94
29.47
88.04
87.62
3.11
2.45
Asset Quality
1.
Govt. Securities to Total Investments
2.
Net NPAs to Net Advances
3.
Off Balance Sheet Items to Total Assets
24.25
19.33
4.
Standard Advances to Total Advances
94.71
96.29
5.
Net NPAs to Total Assets
2.00
1.65
Management Quality
1.
Gross Bank Credit to Aggregate Deposit
78.02
80.94
2.
Growth in Total Assets
14.38
17.07
3.
Average Productivity (Rs Lakhs)
1223.35
1222.40
4.
Profit per Employee (Rs Lakhs)
2.33
7.80
Earnings
1.
Non Interest Income to Total Income
8.53
7.50
2.
Return on Assets
0.29
0.99
3.
Net Interest Margin
2.76
3.21
4.
Ratio of Cost to Income
45.56
42.40
5.
Staff Cost to Net Interest Income + Other Income
27.27
26.79
6.
Average Yield on Advances
11.22
12.02
7.
Average Yield on Coupon Based Investments
8.05
7.97
8.
Operating Profit to Average Working Funds
1.82
2.12
23.86
22.54
0.31
0.43
27.10
25.72
Liquidity
1.
Govt. Securities to Total Assets
2.
Cash to Total Assets
3.
Total Investments to Total Assets
231

31.03.2014 -
(- 1 $ = 60.0998 { $
)
( )
( $ )
]
]
589.61
98.10

8147.84
1355.72
]
141845.12
23601.60
13185.09
2193.87

3573.26
594.55
167340.92
27843.84

-\
7912.06
1572.73
45356.62
107644.20
433.93
4421.39
167340.93
40572.96
5294.45
1316.49
261.69
7546.88
17910.91
72.20
735.67
27843.84
6750.93
880.94
31.03.2014
14297.32
1332.84
15630.16
2378.93
221.77
2600.70
]
\

10559.98
2309.94
2324.66
15194.58
1757.07
384.35
386.80
2528.22
108.89
2.64
95.00
195.00
64.86
11.02
56.16
18.12
0.44
15.81
32.45
10.79
1.83
9.34
]

]
]

- ]
232
ABRIDGED FINANCIAL STATEMENT OF ANDHRA BANK IN FOREIGN CURRENCY

BALANCE SHEET AS ON 31.03.2014
(Amount in Indian Rupee converted into US$ at RBI Reference Rate for two currencies applicable as on the date of Balance
Sheet i.e. 1 US$ = Rs 60.0998)
(Indian ` in Crore)
(US$ in million)
589.61
98.10
8147.84
1355.72
141845.12
23601.60
13185.09
2193.87
3573.26
594.55
167340.92
27843.84
7912.06
1316.49
Balances with banks and Money at Call and Short Notice
1572.73
261.69
45356.62
7546.88
107644.20
17910.91
CAPITAL AND LIABILITIES

Capital
Reserves and Surplus
Deposits
Borrowings
Total
ASSETS
Investments
Advances
Fixed Assets
433.93
72.20
Other Assets
4421.39
735.67
167340.93
27843.84
40572.96
6750.93
5294.45
880.94
14297.32
2378.93
Total
Bills for collection
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2014
INCOME
Interest Earned
Other Income
Total
1332.84
221.77
15630.16
2600.70
10559.98
1757.07
2309.94
384.35
EXPENDITURE
Interest Expended
Operating Expenses
Provisions & Contingencies
Total
2324.66
386.80
15194.58
2528.22
108.89
18.12
2.64
0.44
APPROPRIATIONS
Transfer to Capital Reserve
Transfer to Revenue & Other Reserves
Interim Dividend Paid
95.00
15.81
195.00
32.45
64.86
10.79
Tax on Dividend
11.02
1.83
Balance carried over to Balance Sheet
56.16
9.34
233
- ] CLASSIFICATION OF BRANCHES - POPULATION GROUP WISE

/]/
Region/ State/ U.T.
\, 2013
2013-14

Branches as at the Branches opened
end of March 2013 during 2013-14
-
Rural Semi-Urban
Urban
Metro
\, 2012

Branches as at the
end of March 2014
Northern Region
Haryana
\ Himachal Pradesh
] Punjab
] Rajasthan
\[ ( ) Chandigargh (UT)
New Delhi
] Jammu & Kashmir
125
30
1
29
20
3
41
1
56
19
3
19
7
1
6
1
27
4
1
13
8
1
0
0
41
15
2
20
3
0
0
1
57
29
1
12
11
3
0
1
56
1
0
3
5
0
47
0
181
49
4
48
27
4
47
2
North Eastern Region

Assam
Meghalaya
Tripura
9
7
1
1
1
1
0
0
1
1
0
0
1
1
0
0
8
6
1
1
0
0
0
0
10
8
1
1
Eastern Region
Bihar
^ Jharkhand
Odisha
Sikkim
\ West Bengal
188
16
12
125
1
34
22
2
2
13
0
5
63
2
0
58
0
3
63
4
6
48
1
4
67
11
8
32
0
16
17
1
0
0
0
16
210
18
14
138
1
39
Central Region
[ Chattisgarh
Madhya Pradesh
Uttar Pradesh
Uttarakhand
97
14
17
59
7
38
2
10
23
3
9
0
0
9
0
29
4
6
13
6
66
12
11
39
4
31
0
10
21
0
135
16
27
82
10
95(1)
4
22
68(1)
1
8
0
3
5
0
3
0
0
2
1
10
4
2
4
0
45 45 (1)
0
0
15
8
30 37(1)
0
0
103 (1)
4
25
73 (1)
1
\ Western Region
Goa
] Gujarat
Maharashtra
( )
Dadra Nagar Haveli (UT)
Southern Region
Andhra Pradesh
Karnataka
Kerala
Tamilnadu
\ ( ) Puducherry (UT)
1353(12)
1160(12)
75
24
91
3
123 503 (1)

95 479 (1)
12
6
1
0
15
18
0
0
448 (1) 343 (6) 181 (1)

396 (1) 282(6) 97 (1)
11
21
49
14
11
0
25
28
35
2
1
0
1475 (9)
1254 (9)
87
25
106
3
Total
1867(13)
248 606 (1)
592 (1) 586 (6) 330 (2)
2114 (10)
- - 10 ] 2011-12
Note: Retail Credit branch-Hyderabad merged with SR Nagar branch. Figures in brackets indicate Extension Counters. 3 Extension
Counters converted as full fledged branches during the year 2013-14.
234

/ Andhra Bank Financial Services Ltd.

FINANCIAL STATEMENTS OF SUBSIDIARY

Andhra Bank Financial Services Ltd.
235
i
1
2
3

() ]
()
()

\
()
() ()
()
()
\
()
()
() \
()
II
1 \
() \
(i)

(ii)
(iii) \ ]
(iv)
() \
() ()
()
() -\
2 \
() \
()
()
()
()
(\) \
31.03.2014

31.03.2014
`
3
4
31.03.2013
`
50,000,000
50,000,000
-10,42,99,524 -5,42,99,524 -11,76,14,589
0
0
0
0
0
0
36,07,36,930
0
9,29,875
0
0
9,29,875
30,73,67,281
0
9,30,547
0
0
z
`
-6,76,14,589
0
0
0
0
0
0
36,07,36,930
9,30,547
29,40,52,888
7
32,23,853
31,88,062
0
0
0
0
0
11
8
9
10
0
0
0
0
0
10,43,30,768
0
2,68,356
61,766
20,26,70,600

236
96
10,37,50,608
0
2,83,981
0
19,00,18,203
0 20,30,00,722
30,73,67,281
: 06906S
( )
.026421

: 24.04.2014
35,791
31,81,953
31,81,857
19,03,02,184
29,40,52,888

Balance Sheet as on 31.03.2014
Particulars
I
1
2
3
Note No
EQUITY AND LIABILITIES :

Shareholders Funds
(a) Share Capital
(b) Reserves and Surplus
(c) Money Received against
Share Warrants
Share Application Money
Pending allotment
Non Current Liabilities
(a) Long Term Borrowings
(b) Deferred Tax Liabilities (Net)
(c) Other Long Term Liabilities
(d ) Long Term Provisions
Current Liabilities
(a) Short Term Borrowings
(b) Trade Payables
(c) Other Current Liabilities
(d) Short Term Provisions
3
4
As on 31st March, 2014

`
5,00,00,000
-10,42,99,524
5
0
9,29,875
0
0
TOTAL
II
1
ASSETS
Non-current assets
(a) Fixed assets
(i) Tangible assets
Gross Block
Less : Depreciation
Net Block
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under
development
(b) Non -current investments
(c ) Deferred tax assets (Net)
(d) Long term loans and advances
(e) Other non current assets
Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and Cash Equivalents
(e) Short term loans and advances
(f) Other current assets

`
`
5,00,00,000
-5,42,99,524 -11,76,14,589
0
0
0
0
36,07,36,930
0
0
0
36,07,36,930
0
9,30,547
0
0
9,29,875
30,73,67,281
9,30,547
29,40,52,888
7
32,23,853
31,88,062
31,81,953
31,81,857
35,791
96
0
0
0
0
0
0
0
0
0
0
11
10,43,30,768
10,37,50,608
8
9
10
0
2,68,356
61,766
20,26,70,600
0
0 20,30,00,722
30,73,67,281
0
2,83,981
0
19,00,18,203
0
0
TOTAL
SIGNIFICANT ACCOUNTING POLICIES 2
The Notes referred to above form an integral part of the Balance Sheet 1 to 21
As per our report attached
For Nalini & Murali Associates
FRN : 06906S
( A NALINI MOHANA RAO )
PARTNER
Membership No:026421
PLACE : Hyderabad
DATE : 24.04.2014
-6,76,14,589
K K Misra
Chairman
Prasanna Panicker
Director
B Bhaskara Sarma
Director
237
TVS Chandrasekhar
Director
K Koteswara Rao
Managing Director
19,03,02,184
29,40,52,888
K V Kannan
Director
Y Amarnath
Company Secretary
31.03.2014

2013-14
`
`
\ ]
]
II ()

III ] (I+II)
IIV

\
\
\

- ,

V

VI
VII (V - VI)
VIII
IX ( VII + VIII )
X
(1) \
(2)
(3)
XI \ ()
XII \ / ()
XIII\
XIV \ / ()
( \) (XII- XIII)
XV () (XI+XIV)
XVI ]
(1)
(2)
14
14
1,61,40,193
-46,328
0
1,60,93,865
0
0
0
0
0
10,69,567
44,890
6,205
0
9,27,497
46,644
686
91,651
1,435,014
26,47,327
35,65,224
0
45,40,051
1,66,58,701
0
1,66,58,701
0
1,66,58,701
1,15,53,814
0
1,15,53,814
0
1,15,53,814
17
18
33,27,156
0
16,480
19

2
/

: 06906S
( )
.026421

: 24.04.2014
33,43,636
1,33,15,065
0
0
23,09,882
0
0
23,09,882
92,43,932
0
0
0
1,33,15,065
0
92,43,932
2.66
2.66
1.85
1.85

238
1,78,74,543
-3,529
14,35,014
1,93,06,028
15
16
7
14
2012-13
`

Profit and Loss Statement for the year ended 31.03.2014
Particulars
Revenue from operations
Interest income :
II Other income : (Loss)
Provision for Bad & Doubtful debts
written back
III Total Revenue ( I + II )
IV Expenses :
Cost of material consumed
Purchase of stock - in - trade
Changes in inventories of finished goods
work-in-progress and stock-in-trade
Employee Benefits expenses
Administrative and other Expenses
Depreciation and amortization expenses
Other Expenses-Rent, Legal &
Professional Fee , Audit fee etc,.
Bad Debts written off
Total expenses
V Profit before exceptional and
extraordinary items and tax
VI Exceptional Items
VII Profit before extraordinary items
and tax ( V - VI )
VIII Extraordinary Items
IX Profit Before Tax ( VII + VIII )
X Tax Expense
(1) Current tax
(2) Deferred tax
(3) Income Tax for earlier Asst. Years
XI Profit/(Loss ) for the period from
continuing operations
XII Profit/ ( Loss ) from discontinuing
Operations
XIII Tax expense of discontinuing
operations
XIV Profit/ (Loss ) from discontinuing
operations (after tax ) ( XII - XIII )
XV Profit /( Loss ) for the period (XI + XIV)
XVI Earnings per equity share :
(1) Basic
(2) Diluted
Note No
Year ended 31st March, 2014 Year ended 31st March, 2013
`
`
`
`
14
14
15
16
7
17
14
1,78,74,543
-3,529
1,61,40,193
-46,328
14,35,014
1,93,06,028
0
1,60,93,865
0
0
0
0
0
10,69,567
44,890
6,205
0
9,27,497
46,644
686
91,651
14,35,014
26,47,327
35,65,224
0
45,40,051
1,66,58,701
0
1,15,53,814
0
1,66,58,701
0
1,66,58,701
1,15,53,814
0
1,15,53,814
18
33,27,156
0
16,480
33,43,636
23,09,882
0
0
23,09,882
1,33,15,065
92,43,932
0
1,33,15,065
0
92,43,932
2.66
2.66
1.85
1.85
19
SIGNIFICANT ACCOUNTING POLICIES 2

The Notes referred to above form an integral part of the Profit & Loss statement 1 to 21
K K Misra
Prasanna Panicker
TVS Chandrasekhar
K V Kannan
FRN : 06906S
Chairman
Director
Director
Director
PARTNER
B Bhaskara Sarma
K Koteswara Rao
Y Amarnath
PLACE : Hyderabad
Director
Managing Director
Company Secretary
DATE : 24.04.2014
239
31 \, 2014
31.03.2014
\

] :

() ]
]

/

()
\ ]

1,66,58,701
1,15,53,814
6,205
686
-15,625
0
0
0
-55,328
0
0
0
0
-61,766
-672
0
0
6,015
(Rs 9,53,000 +16,14,020 = Rs 25,67,020)
\
:
]
]

/
] ]
\
]
/ ()
/ /
31.03.2013
`
1,66,18,093
1,16,15,843
39,23,796
1,26,94,297
25,67,020
90,48,823
0
41,900
0
0
0
0
41,900
0
1,26,52,397
0
0
0
0
19,00,18,203
20,26,70,600
90,48,823
0
0
0
0
1,26,52,397
90,48,823
18,09,69,380
1,26,52,397
19,00,18,203
90,48,823
: 1. { ( ) , 2006 . 3

2.
3. ] ,
1 21

\

: 06906S
( )
.026421

\
: 24.04.2014
240

Cash Flow Statement for the Year ended 31 March, 2014
Particulars
31.03.2014
`
31.03.2013
`
`
Net cash inflow from operating activities
Profit Before Tax
1,66,58,701
1,15,53,814
Adjustments :
Depreciation
6,205
686
Cash flow from investment business change in the value of stocks (Decrease)
-15,625
-55,328
Interest received
0
0
Interest paid
0
0
Dividend paid
0
0
Net cash inflow/ (outflow) from returns
on investments and servicing of finance
0
0
Increase in Debtors
-61,766
0
Increase/(Decrese) in Creditors
-672
6,015
Cash Generated from operations
1,66,18,093
1,16,15,843
Direct Taxes paid net of refunds,if any
(` 9,53,000 +16,14,020 = ` 25,67,020)
39,23,796
25,67,020
Net Cash from Operating Activities
1,26,94,297
90,48,823
Cash flow from Investing activities :
Payments to acquire intangible fixed assets
0
0
Payments to acquire tangible fixed assets
41,900
0
Receipts from sales of tangible fixed assets
0
0
Net cash inflow/ (outflow) from investing
activities
41,900
0
Net cash inflow before financing
1,26,52,397
90,48,823
Financing
0
0
Issue of ordinary capital
0
0
Repurchase of debenture loan
0
0
Expenses paid in connection with share issues
0
0
Net cash inflow/ (outflow) from financing
0
0
Increase/ (Decrease) in cash and
cash equivalents
1,26,52,397
90,48,823
Cash and Cash Equivalents as at
19,00,18,203
18,09,69,380
Cash and Cash Equivalent as at the end
of the year
20,26,70,600
1,26,52,397
19,00,18,203
90,48,823
NOTES : 1. Cash Flow statement has been prepared under the Indirect Method as set out in the Accounting Standard No
3 Cash Flow Statement as per Companies (Accounting Standard) Rules, 2006.
2. Cash and Cash equivalent represent Cash and Bank Balances.
3. Previous years figures have been regrouped/reclassified wherever applicable.
The Notes referred to above form an integral part of the financial statements 1 to 21
FRN : 06906S
PARTNER
PLACE : Hyderabad
DATE : 24.04.2014
K K Misra
Chairman
Prasanna Panicker
Director
B Bhaskara Sarma
Director
241
TVS Chandrasekhar
Director
K Koteswara Rao
Managing Director
K V Kannan
Director
Y Amarnath
Company Secretary
1 -
{ , 2006 ( )
{ , 1956
(])
\
, , ] \
, ]
]
,
\ , ]
\ ,
\
/ , - ]

2
.
()
] .
, ].
. -
.

] .
.]
(1) ]
] ,
].
1. ] .
2. ] .
3. ] .
(2) ]
] ]
, ,
].
.
]
, ]
.
.
] ]
, ] ,

. 1/- ] .
\. \
\
] .
].
1.
1956 \ XIV

] .
2.
1956 \ XIV

95% ]

] ] .

\
\ ] ,
]
] .
242

NOTE No : 1 : - BASIS OF PREPARATION
Interest on securities and dividend on share are not

recognised until the claims and counter claims if any,
pending on such securities are cleared.
The Company maintains its accounts on accrual basis

following the historical cost convention in accordance with
generally accepted accounting principles (GAAP) and in
compliance with provisions of the Companies Act, 1956
and the Accounting Standards as specified in the Companies (Accounting Standard) Rules, 2006 prescribed by
the Central Government. However, certain escalation and
other claims, which are not ascertainable or acknowledged
by customers, are not taken into account.
Dividend Income on Shares is recognised when the

owners right to receive payment is established.
Revenue is not recognised on the grounds of prudence,
until resolved in respect of consolidation damages,
penalties, delayed payment charges as recovery of the
amounts is not certain.
E. STOCK IN TRADE:
The preparation of financial statements in conformity with

GAAP requires that the management of the Company
makes estimates and assumptions that affect the reported
amounts of income and expenses of the period, the reported
balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial
statements. Examples of such estimates include useful
life of tangible and intangible fixed assets, provision for
doubtful debts / advances, future obligations in respect of
retirement benefit plans etc. Actual results could differ from
these estimates.
Stock of shares and securities are valued at cost or

market value whichever is lower. In case of unquoted
shares the valuation is made at `.1/- with a view to have
control and accountability and also as per the standards
suggested by ICAI.
F. FIXED ASSETS:
All fixed assets including assets given on lease are
valued at cost.
G. DEPRECIATION:
NOTE No : 2 : SIGNIFICANT ACCOUNTING POLICIES
1. Assets for own use.
A. LEASE FINANCE:
Depreciation is provided on straight-line method on pro

rata basis in accordance with rates prescribed under
Schedule XIV of the Companies Act, 1956.
The Company (ABFSL) recognizes lease rentals in the

year in which it has fallen due. The lease processing
charges, management fee and other service charges
considered as income on execution of agreements.
2. Assets leased out.

Depreciation is provided on straight line method on pro
rata basis in accordance with rates prescribed under
Schedule XIV of the Companies Act, 1956 or writing off
at 95% of the cost of the asset over the primary lease
period in proportion of lease rentals earned during the
year to total rentals for the entire primary lease period,
whichever is higher.
B. HIRE PURCHASE: NIL

C. INVESTMENT BUSINESS:
Purchase and Sale of securities are accounted on execution of contracts.
D. INTEREST:
[1] Interest and other dues are not recognised until
received on the grounds of prudence in respect of debts
and claims.
The machinery under lease to M/s. Incab Industries Ltd

is not put to use during this year also.
H. Miscellaneous Expenses to the extent not written off:
1. Where suits have been filed.
All expenditure the benefit of which is spread over a

number of years is grouped under this account and is
amortized over number of years on the basis of estimated benefit derived in each such year.
2. Where accounts are considered doubtful.

3. Where parties are facing prolonged financial difficulties.
[2]
Interest on Investments
243
31 \ 2014
. 3 ]
31 \ 2014
31 \ 2013
( : 100,00,000 .10 )
,
50,00,000 .10
(
)
( : 50,00,000 .10)
10,00,00,000
10,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
. ]
31 \ 2014

`

50,00,000
5,00,00,000
]

50,00,000
5,00,00,000
5,00,00,000
31 \ 2013

50,00,000
50,00,000
5,00,00,000
5,00,00,000
. /
.10/- 31 \,
2014 ( - )
. / / /
31 \ 2014
`
, /
50,00,000 .10
( : 50,00,000
.10 )
. 5%
31 \ 2014

.10
,
50,00,000
.
\. \
] ,
]

. /
,
].
i. ]
244
31 \ 2013
`
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
100.00%
31 \ 2013

50,00,000
100.00%

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2014
NOTE No. : 3 : SHARE CAPITAL
Particulars
`
`
`
`
Authorized
(Previous year: 100,00,000 Equity
Shares of `10 each)
10,00,00,000
10,00,00,000
Issued, Subscribed & Paid-up
50,00,000 Equity Shares of ` 10 each fully
paid up.
(All the shares are held by the Andhra Bank
and its nominees)
(Previous year: 50,00,000 Equity Shares of
` 10 each)
5,00,00,000
5,00,00,000
5,00,00,000
5,00,00,000
a.Reconciliation of the Shares outstanding at the beginning and at the end of the reporting period:
Particulars
No of Shares
`
No of Shares
`
Equity Shares:
At the beginning of the period
50,00,000
5,00,00,000
50,00,000
5,00,00,000
Issued during the year as fully paid
Outstanding at the end of the period
50,00,000
5,00,00,000
50,00,000
5,00,00,000
b. Terms / Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of `10/- per share. Each holder of equity shares is
entitled to one vote per share. During the year ended 31st March 2014, no dividend is declared by the Company. (Previous
year - Nil)
c. Shares held by Holding/Ultimate holding company and/or their subsidiaries/associates:
Particulars
`
`
`
`
Equity Shares:
Andhra Bank, Parent / holding Bank
50,00,000/- equity shares of ` 10 each fully
paid up
5,00,00,000
5,00,00,000
(Previous year : 50,00,000 Equity Shares of
`10 each)
5,00,00,000
5,00,00,000
d. Details of Shareholders holding more than 5% shares in the company:
Particulars
As on 31st March, 31.03.2014
As on 31st March, 31.03.2013
No of Shares
%
No of Shares
%
Equity Shares of ` 10/- each fully paid
Andhra Bank, holding Company
50,00,000
100.00%
50,00,000
100.00%
e. Shares reserved for issue under options:
NIL
NIL
f. Aggregate number of bonus shares issued,
shares issued for consideration other than
cash and shares brought back during the
NIL
NIL
period of five years immediately preceding
the reporting date:
g. Securities convertible into equity /
preference shares issued along with the
NIL
NIL
earliest date of conversion:
h. Calls unpaid:
NIL
NIL
i. Forfeited Shares
NIL
NIL
245
.4-
31.03.2014
`
/ ()

]

31.03.2013
`
(11,76,14,589)
1,33,15,065
(12,68,58,521)
92,43,932
(10,42,99,524)
(10,42,99,524)
5 : \ :
31.03.2014
`
(11,76,14,589)
(11,76,14,589)
31.03.2013

36,07,36,930
36,07,36,930
36,07,36,930
36,07,36,930
, / ,
31.03.2014 , ] , 36.07 .
]
6 : \ :
31.03.2014
31.03.2013
`

0
0
:
i) { .
8,80,412
8,80,412
ii)
49,463
9,29,875
50,135
9,30,547
9,29,875
9,30,547
i) 31.07.1995 \\ . 5.50
24% ] 1.88
\\ 2 2001 1.88
12% ] ] 366.02
\\ ] (309/01)
(328/01) ] \\ ()
80,351 1.42 ] ]
21 ] 2010 ]] \ 309/01 ] () \
328/01 , () 02.04.2001 12 %
] 8,80,412/-
\\ 2010 () . 11659-11660
01.03.2011
, 05.04.2010 , 2010 \\ \ 2718 ] \\
] \\ ] ( 1.42 ) ]

29.02.2010 \\ \ \\ 21 ] 2010
08.10.2010
29.09.2010 \\ \\ ]
\\ ] ]
\\ \\ 2.51 ] ]
2010 \\ \ 2718 27.10.2010 ]
246

NOTE NO 4 - RESERVES & SURPLUS
Particulars
As on 31.03.2014
`
Surplus/(deficit) in the Statement of Profit and Loss

Balance as per the last financial statement
(11,76,14,589)
Add: Profit for the year
1,33,15,065
Closing Balance
Total
As on 31.03.2013
`
`
(12,68,58,521)
92,43,932
(10,42,99,524)
(10,42,99,524)
(11,76,14,589)
(11,76,14,589)
Note No 5 : NON CURRENT LIABILITIES : LONG TERM PROVISIONS :

Particulars
As on 31.03.2014
As on 31.03.2013
`
`
`
`
Provision for Claims
36,07,36,930
36,07,36,930
Total
36,07,36,930
36,07,36,930
The Company disputed the other claims made against the company in the Special Court, Mumbai and other Courts/Judicial
Authorities. However the directors have decided to continue the existing provision of ` 36.07 Crore made on contingent
liabilities and claims not acknowledged as debts on prudent basis for the financial year ending 31.03.2014.
Note No 6 : CURRENT LIABILITIES : TRADE PAYABLE :
Particulars
Due to Micro and Small Enterprises
Due to others :
i) A/c M/s Tamilnadu Newsprints & Papers Ltd
ii) Others
As on 31.03.2014
`
8,80,412
49,463
`
0
9,29,875
As on 31.03.2013
`
`
0
8,80,412
50,135
9,30,547
Total
9,29,875
9,30,547
i) TNPL filed a suit in the High Court of Madras on 31.07.1995, for a sum of ` 5.50 Crore being the difference of interest
between the alleged return claimed and the actual return and further interest at 24% per annum on amount of ` 1.88 Crore
from date of plaint till realization and for costs.
The Honble High Court passed the judgment on 2nd April 2001 and the suit was decreed for a sum of ` 366.02 lakhs
together with interest at 12% p.a. on the sum of ` 1.88 Crore from the date of judgment till realization and for costs.
TNPL, aggrieved by the disallowed portion of the interest, had preferred other side appeal (309/01) before Division Bench
of Madras High Court.
ABFSL, aggrieved by the decreeing of the Suit, preferred other side appeal (328/01), which was admitted by the Division
Bench of Madras High Court on depositing of ` 1.42 Crore and ` 80,351 being one third of the decretal amount by the
Company (ABFSL).
On 21st January 2010, the Learned Judges were pleased to dismiss the OSA 309/01 preferred by TNPL and were pleased
to partly allow OSA 328/01 preferred by our Company (ABFSL). As per the Judgment, the Company (ABFSL) is liable to
pay ` 8,80,412/- along with interest at 12% p.a. from 02.04.2001 to TNPL till the date of realization.
Aggrieved by the said order, TNPL filed SLP(C) No 11659-11660 of 2010 before Honble Supreme Court of India and
Leave was granted on 01.03.2011.The suit has not come up for regular hearing.
In the meantime, on 05.04.2010, ABFSL filed a petition No 2718 of 2010 in Madras High Court, with a request to refund
the money deposited earlier in the Madras High Court (` 1.42 Crore) along with applicable interest, after adjusting the
money to be paid by the ABFSL to TNPL as per High Court order.
The petition of ABFSL was considered by Madras High Court on 29.09.2010 and ordered the TNPL to pay the amount to
ABFSL before 08.10.2010 as per the High Court Judgment dt. 21st January 2010.
Aggrieved by the said order of Madras High Court dt. 29.09.2010, TNPL moved the matter in the Honble Supreme Court
of India and after hearings the Court granted interim stay to TNPL on 07.10.2010 subject to depositing the amount payable
to ABFSL in Madras High Court.
The petition of ABFSL 2718 of 2010 at Madras High Court was closed on 27.10.2010, on depositing a sum of ` 2.51 Crore
by TNPL in Madras High Court as per the direction of Honble Supreme Court of India.
247
7: \ :
31.13.2014
`
31.03.2013
`
()

7,270
7,270
\
35,791
35,791
54,400
12,500
() :

31,26,392
31,26,392

32,23,853
31,81,953
:
31,88,062
31,81,857

35,791
96
\ 31, 2014 1956 ( ) \ IV
, 1956 () \ VI
: 7 : \ : \ :

01.04.2013 ] 31.03.2014 01.04.2013 31.03.2014 31.03.2013 31.03.2014

:

7,270
0
0
7,270
7,177
0
7,177
93
93
\
35,791
0
0
35,791
35,790
0
35,790
1
1
12,500 41,900
0
54,400
12,499 6,205
18,704
1
35,696

55,561 41,900
0
97,461
55,466 6,205
61,671
95
35,790
:

31,26,392
0
0
31,26,392 31,26,391
0 31,26,391
1
1
+
31,81,953 41,900
0
32,23,853 31,81,857 6,205 31,88,062
96
35,791

31,81,953
0
0
31,81,953 31,81,171
686 31,81,857
782
96
\\ { 1992 45.29
{ \ ()
() () \ ] ()
] \ ] ]
\ ] () \
] .
]

] ] {

ii) \ 31.03.2014 1/- , ]
: 8 : :
31.13.2014
31.03.2013
-
{ ]
\ -
72,900
1,90,606
248
88,525
2,63,506
1,95,456
2,83,981

NOTE No : 7 : NON CURRENT ASSETS : TANGIBLE
Particulars
As on 31.03.2014
As on 31.03.2013
`
(A) OWNED ASSETS :
Office Equipment
Furniture & Fittings
Computers
(B) ASSETS GIVEN ON LEASE :
Plant & Machinery
7,270
35,791
54,400
7,270
35,791
12,500
31,26,392
31,26,392
GROSS BLOCK
Less : Decreciation accumulated
32,23,853
31,88,062
31,81,953
31,81,857
35,791
96
Net Block
DEPRECIATION STATEMENT FOR THE YEAR ENDED MARCH 31, 2014

As per Schedule VI of the Companies Act 1956 ( SLM )
NOTE : 7 : NON CURRENT ASSETS: FIXED ASSETS : TANGIBLE
Nature of Assets
Gross Block
Balance as
on
01.04.2013
Additions
during the
year
Depreciation
Deletions
Total as on
31.03.2014
Net Block
Total up to For the Total up to

As on
As on
01.04.2013 year 31.03.2014 31.03.2013 31.03.2014
A: Owned Assets
Office Equipment
7,270
7,270
7,177
7,177
93
93
Furniture & Fittings
35,791
35,791
35,790
35,790
Computers
12,500
41,900
54,400
12,499
6,205
18,704
35,696
Total Owned Assets
55,561
41,900
97,461
55,466
6,205
61,671
95
35,790
B: Assets given on Lease

Plant & Machinery
31,26,392
31,26,392
31,26,391
31,26,391
Total of A + B
31,81,953
41,900
32,23,853
31,81,857
6,205
31,88,062
96
35,791
Previous Year
31,81,953
31,81,953
31,81,171
686
31,81,857
782
96
(i) The suit filed against M/s. Incab Industries Ltd in Delhi High Court, for realization of lease rentals since October
1992 amounting to ` 45.29 lacs, is pending for appointment of the third arbitrator. In the mean time M/s Incab Industries
Ltd.,submitted a proposal before the Board for Industrial and Financial Reconstruction [BIFR]. The Company (ABFSL) filed
a petition before the Board [BIFR] who has permitted the Company (ABFSL) to take possession of the leased machinery
with Incab Industries Ltd. But the workers union is protesting to take the machinery with a plea that some interested
parties are negotiating for takeover of Incab Industries Ltd. The final Rehabilitation Scheme (DRS) submitted by M/s Tata
Steel Ltd under consideration by the BIFR. The Board during the year reviewed the position of recovery of lease rentals
dues from the Incab Industries Ltd and found that the recovery chances are remote and decided to write off as bad debt.
BIFR directed the Incab Industries Ltd to submit all the Audited Accounts along with Auditorss Reports thereon for the past
period i.e from the date of sickness to till date to Board for determination of the sickness and the measures to be taken under
the Act for the companys rehabilitation. In view of the above the Rehabilitation process is still under process before BIFR.
(ii) As the carrying cost of the machinery is ` 1/- on 31.03.2014 and is much below the valued cost, there is no impairment
loss on the machinery.
Note No : 8 : STOCK IN TRADE : STOCK OF SHARES & SECURITIES
Particulars

`
Aggregate amount of quoted share - Valued

at Cost or Market value whichever is less
Aggregate amount of unquoted shares Valued at Rupee one

`
72,900
1,90,606
249
88,525
2,63,506
1,95,456
2,83,981
\ \ 31.03.2014 /
31.03.2014 \/ \ ]

/ //
]
01.04.13 01.04.13
31.03.14 31.03.14
:
2,16,742
2,83,981
2,16,790
2,68,356
( )
2,16,742
2,83,981
2,16,742
2,83,981
31.03.2014 \
: :
/
{ { {
31.03.2014 `
` 31.03.2014 31.03.2014
, ]
`
`
`

3,000
50.00 1,50,000
1.00
3,000
3,000

5,000
28.75 1,43,750
1.00
5,000
5,000

5,000 150.00 7,50,000
1.00
5,000
5,000

11,400
56.25 6,41,250
1.00
11,400
11,400

3
0
-0
0

3
0
-0
0

6,600
40.00 2,64,000
1.00
6,600
6,600

20,300 100.00 20,30,000
1.00
20,300
20,300
() )
3,300
37.50 1,23,750
1.00
3,300
3,300
]
( \)
46,850
28.75 13,52,688
1.00
46,850
46,850
\ ] ]
4,600
87.50 4,02,500
1.00
4,600
4,600
{ /
( )
4,850 130.00 6,30,500
1.00
4,850
4,850
] .
450 170.00
76,500
1.00
450
450
]
8,333
1.00
8,333
1.00
8,333
8,333

55,400
51.25 28,39,250
1.00
55,400
55,400
{
2,700 145.00 3,91,500
1.00
2,700
2,700
{ \ -
5,000
42.50 2,12,500
1.00
5,000
5,000

8,333
1.00
8,333
1.00
8,333
8,333
{
240
80.00
19,200
1.00
240
240
.
2,000
67.50 1,35,000
1.00
2,000
2,000

2,100
50.00 1,05,000
1.00
2,100
2,100

1,95,462
1,02,84,054
1,95,456
1,95,456
: , ] 31.03.2014

21,280
89.29 19,00,000
3.30
70,224
70,224
\
48
0.00
0 55.75
2,676
2,676

21,328
19,00,000
72,900
72,900

2,16,790
1,21,84,054
2,68,356
2,68,356
250

Seggregation between quoted and unquoted share is made on BSE / NSE Bulletin for the Business transacted on 31.03.2014.
Further the shares are classified as unquoted, if such shares are not traded during three months period before 31.03.2014.
Opening
Stock
Opening
stock
Purchases/
Additions
Quantity wise
Purchase/
Returns/
Deletions
Sales
01.04.2013 01.04.2013
Qty.
`
Closing
stock
Closing
stock
31.03.2014 31.03.2014
Qty.
`
Equity Shares fully paid up
2,16,742
2,83,981
2,16,790
2,68,356
Previous Years figures
2,16,742
2,83,981
2,16,742
2,83,981
List of outstanding shares as on 31.03.2014

A: Shares, which are in physical form:
Name of the Scrip / Equity Shares
Quantity Cost
31.03.2014
`
`
Adhunik Synthetics Ltd
3,000
Akhil Ceramics Ltd.

Arlabs Ltd.
Cost
Value
`
Mkt. Rate Mkt. Value Cost or Mkt. Value

31.03.2014 31.03.2014
whichever is
`
`
less 31.03.2014 `
50.00
1,50,000
1.00
3,000
3,000
5,000
28.75
1,43,750
1.00
5,000
5,000
5,000
150.00
7,50,000
1.00
5,000
5,000
11,400
56.25
6,41,250
1.00
11,400
11,400
Bhishma Realty Ltd.
--
Capricon Realty Ltd.
--
6,600
40.00
2,64,000
1.00
6,600
6,600
Dhar Cement Ltd.
20,300
100.00
20,30,000
1.00
20,300
20,300
Electra (India) Ltd.
3,300
37.50
1,23,750
1.00
3,300
3,300
46,850
28.75
13,52,688
1.00
46,850
46,850
HMG Industries Ltd.
4,600
87.50
4,02,500
1.00
4,600
4,600
Indu Gulf Industries Ltd
4,850
130.00
6,30,500
1.00
4,850
4,850
450
170.00
76,500
1.00
450
450
8,333
1.00
8,333
1.00
8,333
8,333
55,400
51.25
28,39,250
1.00
55,400
55,400
Prestige Foods Ltd.
2,700
145.00
3,91,500
1.00
2,700
2,700
Prestige HM-Poly containers Ltd.
5,000
42.50
2,12,500
1.00
5,000
5,000
Pyarelal Textile Ltd.
8,333
1.00
8,333
1.00
8,333
8,333
240
80.00
19,200
1.00
240
240
2,000
67.50
1,35,000
1.00
2,000
2,000
2,100
50.00
1,05,000
1.00
Aryan Finefab Ltd.
Cepham Organics Ltd.
Gujarat Telephone Cables Ltd. (sent

to SHCIL for Demat)
Kunal Engineering Co. Ltd.

Niranjan Piramal Textile Mills Ltd
Nova Electro Magnetics Ltd.
Rampur Fertilizers Ltd.

Shri Ishar Alloy Steels Ltd.
Sipani Auto Mobiles Ltd.
Total of A
1,95,462
1,02,84,054
2,100
2,100
1,95,456
1,95,456
B: Shares, which are in dematerialized form as on 31.03.2014

Ashnoor Textile Mills Ltd.
21,280
89.29
19,00,000
3.30
70,224
70,224
Balrampur Chini Mills Ltd
48
0.00
55.75
2,676
2,676
Total of B
21,328
19,00,000
72,900
72,900
2,16,790
1,21,84,054
2,68,356
2,68,356
Total of A and B
251
9 : :
31.03.2014
`
] \ ]
- , ]
( 7)
:
14,35,014
14,35,014
10 : :
61,766
0
61,766
31.03.2014
`
(i) ;
\
(ii) ]
() 12 :
() 12
31.03.2013
0
31.03.2013
40,70,600
18,35,00,000
1,51,00,000
11 : :
()
() - , \ :
ii) 2007-08, 2009-10, 2012-13
2013-14

ii) 1994-95, 1995-96, 1996-97, 1999-00
2008-09 -
iii)
iv) ]
- :
19,86,00,000
20,26,70,600
31.03.2014
`
11,07,271
18,55,00,000
5,00,000
1,31,000
10,43,30,768

1994-95
1995-96
1996-97
2007-08
2007-08
2009-10
2010-11
2011-12
2011-12
2012-13
2013-14
252
18,60,00,000
19,00,18,203
31.03.2013
`
0
2,27,81,286
2,33,08,397
10,30,92,497
1,00,000
31,000
40,18,203
0
2,32,54,551
2,43,61,822
5,27,111
10,30,92,497
1,00,000
31,000
1,31,000
10,37,50,608
31.03.2014
31.03.2013

`
`
1995-96
2,83,11,822 2,83,11,822
1996-97
4,35,81,300 4,35,81,300
1997-98
3,02,57,801 3,02,57,801
2008-09
39,00,000
39,00,000
2008-09
6,800
6,800
2010-11
1,075
5,01,110
2011-12
0
6,20,000
2012-13
1,09,00,000 1,09,00,000
2012-13
382,200
0
2013-14
9,53,000
9,53,000
2014-15
20,09,000
0
12,03,02,998 11,90,31,833

NOTE No : 9 : TRADE RECEIVABLE :
Particulars
As on 31.03.2014
`
Interest accrued on deposit but not received

Trade Receivable - unsecured, considered bad a/c Incab Industries Ltd ( Ref Note No 7)
14,35,014
Less : Bad debts written off
14,35,014
Total
As on 31.03.2013
`
61,766
61,766
Note No 10 : CASH AND CASH EQUIVALENTS :

Particulars
As on 31.03.2014
`
As on 31.03.2013
`
(i) Balances with Banks ;

In Current Account
40,70,600
40,18,203
(ii) Bank Deposits

(a) Up to 12 Months Maturity :
18,35,00,000
(b) More than 12 Months maturity
1,51,00,000
Total
18,55,00,000
19,86,00,000
5,00,000
20,26,70,600
18,60,00,000
19,00,18,203
Note No 11 : LONG TERM LOANS AND ADVANCES :

Particulars
As on 31.03.2014
`
As on 31.03.2013
`
(a) Loans and advances to related parties
`
0
(b) Others - Unsecured, considered good:

i) Provision for Income Tax - Financial Year 2007-08,
2009-10,2012-13 and 2013-14
2,32,54,551
Less : Advance Tax and TDS
2,43,61,822
ii) Advance Tax and TDS for the Financial Year 1994-95,
1995-96,1996-97,1999-00 and 2008-09
2,27,81,286
11,07,271
2,33,08,397
10,30,92,497
iii) Advance to Advocates
1,00,000
iv) Deposit with Telephones Department
10,30,92,497
1,00,000
31,000
Total
5,27,111
1,31,000
31,000
10,43,30,768
1,31,000
10,37,50,608
Details of advance Income Tax Payment - Year wise :

Financial
Year
1994-95
1995-96
1996-97
2007-08
2007-08
2009-10
2010-11
2011-12
2011-12
2012-13
2013-14
Total
253
Relevant
Asst. Year
1995-96
1996-97
1997-98
2008-09
2008-09
2010-11
2011-12
2012-13
2012-13
2013-14
2014-15
31.03.2014
`
2,83,11,822
4,35,81,300
3,02,57,801
39,00,000
6,800
1,075
0
1,09,00,000
3,82,200
9,53,000
20,09,000
12,03,02,998
31.03.2013
`
2,83,11,822
4,35,81,300
3,02,57,801
39,00,000
6,800
5,01,110
6,20,000
1,09,00,000
0
9,53,000
0
11,90,31,833

1996-97
1999-00
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
. 11 : :

2011-12
2012-13
2013-14
Total
31.03.2014

`
1997-98
8,19,506
2000-01
15,232
2008-09
13,42,714
2009-10
1,06,836
2010-11
0
2011-12
0
2012-03
14,67,648
2013-14
16,14,020
2014-15
17,85,365
71,51,321
31.03.2014

`
2012-13
56,77,308
2013-14
14,35,872
2014-15
16,02,642
87,15,822
31.03.2013
`
8,19,506
15,232
13,42,714
1,06,836
10,32,903
9,70,202
14,67,648
16,14,020
0
73,69,061
31.03.2013
`
56,77,308
14,35,872
0
71,13,180
16,02,642/- \ \ 2013-14 33,27,156/-

. 14,35,872/- \ \ 2011-12 23,09,882/-
. :12 : : (] )
31.03.2014
`
31.03.2013
`
(i) :
] :
) \ ( )
\
, \
7,98,69,658
7,98,69,658
) ] .
2,46,00,000
2,46,00,000
10,21,50,923
10,21,50,923
76,24,756
76,24,756
21,42,45,337
21,42,45,337
)
) ]-
) , 1998 . 1 23,12,10,617.33 . 26.09.1991

23 . 11.5% 23,11,10,821.92 . ,
] () \ 99,795.41 . , ] .. . 26.09.1991
- \
] ,
, 23,12,10,617.33
3
, ] , 26.09.1991
254

Details of the TDS - Year wise
Financial
Year
Relevant
Asst. Year
31.03.2014
`
1996-97
1997-98
1999-00
2000-01
15,232
15,232
2007-08
2008-09
13,42,714
13,42,714
2008-09
2009-10
1,06,836
1,06,836
2009-10
2010-11
10,32,903
2010-11
2011-12
9,70,202
8,19,506
31.03.2013
`
8,19,506
2011-12
2012-13
14,67,648
14,67,648
2012-13
2013-14
16,14,020
16,14,020
2013-14
2014-15
17,85,365
71,51,321
73,69,061
Total
Note No 11 : LONG TERM LOANS AND ADVANCES :
Details of MAT Credit Utilised
Financial
Year
Relevant
Asst. Year
31.03.2014
`
31.03.2013
`
2011-12
2012-13
56,77,308
56,77,308
2012-13
2013-14
14,35,872
14,35,872
2013-14
2014-15
16,02,642
87,15,822
71,13,180
Total
Provision for Income Tax for the financial year 2013-14 is made ` 33,27,156/- after considering the MAT credit entitlement
of `16,02,642/- and the provision for Income Tax was made for the financial Year 2012-13 of ` 23,09,882/- after considering
the MAT credit entitlement of ` 14,35,872/-.
Note No :12 :CONTINGENT LIABILITIES AND COMMITMENTS :
Particulars
As on 31.03.2014
`
As on 31.03.2013
`
(i) Contingent Liabilities :

Claims against the company not acknowledged as debts :
a) Standard Chartered Bank (SCB)
The SCB filed suit against the Company and the matter is
in the Honble Special Court, Mumbai. {Suit No.1/1998}
7,98,69,658
7,98,69,658
b) Tamilnadu Newsprint & Papers Ltd
2,46,00,000
2,46,00,000
10,21,50,923
10,21,50,923
c) Income Tax relating to the Asst. Years in appeal

d) Interest Tax Appels filed by the I T Dept against the
Tribunal Orders.
Total
76,24,756
76,24,756
21,42,45,337
21,42,45,337
a) Suit No 1 of 1998 in the Special Court, Mumbai : In this suit the SCB alleged that they had purchased 11.5% GOI
Bonds with F V of ` 23 Crore on 26.09.1991 from ABFSL for ` 23,12,10,617.33 and that after taking into consideration
the transaction value of certain stock sold by the Plaintiffs (SCB) to the Defendants, amounting to ` 23,11,10,821.92, the
sum of ` 99,795.41 was payable by the plaintiffs which was alleged to have paid by P O dated 26.09.1991 drawn and in
favour of the Andhra Bank. SCB stated that they have subsequently learnt that the proceeds of the said pay order were
credited to the account of Mr H P Dalal. The Plaintiffs alleged that they found that they had not received delivery of the
said securities. Hence claiming allegedly the delivery of the said securities alternatively asking for refund the aggregate
sum of ` 23,12,10,617.33.
ABFSL had denied having any transaction with SCB in the suit transactions and it was further denied having any previty
of contract with the SCB in the suit transactions. Later on SCB, the Plaintiffs, stated that in view of the Plaintiffs inability to
255
, 1265 , 79,869,658.42 .
, ] / 14.02.2014 -
6
) \\ 2011
2291-2292
:
) : () 1993-94 1997-98 1999-00 - ]
\\ , .
]
) 2008-09: ( ) , 1961 143(1) .5,28,790/-
12.03.2010 \ ] / (
) \ . ( )
, 1961 154
] . . ()
) 2010-11: , 143(1) \ 2008-09
1075/- ] \ 92,065 ] , ] \ 25/02/2011
2009-10 ] 92065/- - 18/04/2013
\) 2011-12 15/10/2012
181600/- , ] ] 20896/-
) 2012-13 - 143(1) \
3,82,200/- - , 1961
- (\] - ) , ]
() ]
])] 1993-94 1997-98 ] , ,
1974 , - ()
() () , - -
]
, 1993-94 4/\/2003 18.01.2007
1995-96 . 86/2012 \\ , ..
\ - - , 1974 1993-94
1995-96 - 2,426,473/- 8,07,806/-
:
1. ] ] - . . ( ) . .(
) \ 2003-2004 . , ]
] , ,
.
2) ( ) () .4.00 ]
] 1997 . 1997 . ,
] . ( ) ]
() ] \ ( ) ]
. ( ) , .
3) 1994 ( ) 153 155 100
28/09/1994 ]
256

conclusively establish delivery of the securities sold by the plaintiffs to the defendants on 26.09.1991, save and except the
delivery of BR No 1265, the plaintiffs in the present suit are confining their claim in the present suit to ` 7,98,69,658.42.
The Company had also denied having any transactions with SCB as claimed in the plaint/amended plaints. Honble Special
court on 14th February 2014 adjourned the matter for six weeks for framing draft issues.
b) The Civil Suit filed by the TNPL is now on its appeal before the Hon,ble Supreme Court and numbered as Civil Appeal
No 2291-2292 of 2011 (Ref. Note No 6 ).
INCOME TAX :
c) Income Tax : The Company (ABFSL) had gone on Income Tax appeals for the Asst.Years 1993-94 to 1997-98 & 199900 which are pending before the Honble High Court of Andhra Pradesh. Pending disposal of these appeals, the advance
tax and self assessment taxes paid and taxes adjusted out of refunds by the department are outstanding.
d) Assessment Year 2008-09: The Company (ABFSL) received on 12.03.2010 an intimation U/s 143(1) of Income Tax
Act,1961 with a demand of ` 5,28,790/-, wherein IT Department has not taken into consideration all TDS remittances
/ recovered by Bankers and the FBT & Income Tax remittances made by Company (ABFSL). The Company (ABFSL)
submitted detailed proofs of original TDS certificates and copies of the counterfoils remitting the FBT to Income Tax
Department with a request to issue modified orders U/s 154 of IT Act, 1961, there is no tax liability for the company to pay
further. The Company (ABFSL) is pursuing for the modified orders.
e) Assessment Year 2010-11: The Company received the intimation u/s 143(1) from the CPC, Bangalore indicating that
an amount of ` 92,065 was refundable to the company after adjusting an amount of ` 1,075 towards arrears demand
outstanding for the Asst Year 2008-09 which itself already adjusted out of the refund for Asst. Year 2009-10 vide their
intimation dated 25.02.2011. The refund amount of ` 92,065/- has been received on18.04.2013.
f) Assessment Year 2011-12: The company has submitted the revised return 15.10.2012 and the same was processed
during the year and an amount of ` 1,81,600/- was received by the company as refund which includes ` 20,896/- as interest.
g) Assessment Year 2012-13: The return filed by the company was processed and an intimation under section 143(1) of
the Income Tax Act was received with a demand of ` 3,82,200/-. The department has given the MAT credit as difference
of Income Tax (excluding surcharge & education cess)under normal provisions and MAT provisions instead of difference
between the total tax paid under normal provisions including SC & EC and MAT Provisions of Income Tax Act, 1961, which
had resulted in the demanding the Tax. The company had paid the same and filed an appeal before the CIT(A) which is
yet to come up for hearing.
h) Interest Tax : The Assessing officer completed the assessments under Interest Tax Act, 1974 making additions of
lease rentals and hire purchase income for the Asst. Years1993-94 to1997-98. As against the orders of the Assessing
officer, the company filed appeals before the commissioner of Income Tax (Appeals). The CIT(A) allowed the companys
Appeals. Aggrieved by the orders of the CIT(A), the Income Tax department filed appeals before Income Tax Appellate
Tribunal, Hyderabad. The Tribunal Dismissed the departments appeals.
Aggrieved by the above orders of the Tribunal, the department filed two appeals before the High Court, A.P in ITTA No
86/2012 against the Tribunal Order in ITA No 6/H/2003 for the Asst .Year 1995-96 and ITTA No : 149/2012 against the
Tribunal Order in ITA No 4/H/2003 dated 18.01.2007 for the Asst. Year 1993-94. The contention of the department is that
the tribunal erred in holding that Hire Purchase charges are not exigible to tax under Interest Tax Act, 1974. The Hire
Purchase charges for these two assessment years 1993-94 and 1995-96 are ` 24,26,473/- and ` 8,07,806/- respectively.
Other matters :
1. Interest on Inter Corporate Deposits A/c M/s. Kudremukh Iron Ore Co Ltd. The dispute between the Company (ABFSL)
and M/s. Kudremukh Iron Ore Co Ltd [KIOCL] was settled during the year 2003-04. However, KIOCL has reserved right
to claim on pro-rata basis along with other PSUs in case of surplus arising after meeting all liabilities, for the interest from
the date of maturity of Inter Corporate Deposits up to the date of payment.
2) The Company (ABFSL) repaid in 1997 the total Inter Corporate Deposits of ` 4.00 Crore placed in 1992 by M/s Mishra
Dhatu Nigam Ltd (MIDHANI) with interest up to the contracted date. MIDHANI acknowledged the receipt as full and final
settlement in 1997. However, MIDHANI, subsequently, has made a claim for interest after the contracted date. On refusal
by the Company (ABFSL) to acknowledge or pay the interest, MIDHANI has approached the Committee on Disputes (COD)
who directed the MIDHANI to Permanent Machinery of Arbitration (PMA) with whom the matter is pending. The Company
(ABFSL) has legal opinion saying that the claim of MIDHANI is not sustainable and hence no provision has been made.
3) During the year 1994, the Company (ABFSL) has paid the amounts of ICD 153 & 155 to Delhi Financial Corporation
to the extent of principal sum of ` 100 lacs each, with an agreement dt.28/9/1994 that the contracted interest up to due
date shall be paid after paying the Principal and Interest amount of ICD to all other PSU`s. There was a claim for interest
257
] ]. ..7,08,000/- ] ( ) 9/08/2004
. ] ]
, , .
4) , . . , 1947 17/2011
] \ . . , 1947 (1) ()
-- , .. 14/2012
] .. \ { ] ]- ,
: 13 :
) . ( : )
) ] ] . ( : )
. 14 - \ ]
1, 2013 \ 31, 2014

) ]
(i) ]
(ii) .. ]
) :
i)
-
ii) :

2,83,981
]
0
2,83,981
()
0

2,68,356
] / ()
15 :- \
1,78,53,647
20,896
1,78,74,543
1,61,40,193
0
1,61,40,193
12,096
9,000
3,39,309
0
0
-15,625
-3,529
1,78,71,014
1, 2013 \ 31, 2014

`

\
\
1, 2012 \ 31, 2013

9,30,850
44,540
37,400
56,777
2,83,981
-55,328
1, 2012 \ 31, 2013

10,69,567
7,93,897
41,620
37,280
54,700
9,27,497
10,69,567
: 16 :
1, 2013 \ 31, 2014

`
0
30,000
5,807
9,083
258
-46,328
1,60,93,865
44,890
44,890
9,27,497
1, 2012 \ 31, 2013

`
0
24,000
12,558
10,086
46,644
46,644

of ` 7,08,000/- for the contracted period and the Company (ABFSL) has paid the same on 09/08/2004. However Delhi
Financial Corporation has reserved the right to claim on prorata basis along with other PSUs in case of surplus arising
after meeting all liabilities, for the interest from the date of maturity of ICDs to date of payment.
4) Dispute in the Industrial Tribunal, Hyderabad : An application under the I D Act 1947 was filed and the same was
registered as LCID 17/2011. Further an industrial dispute between the workman and the management of Andhra Bank
have been referred to the Industrial Tribunal Cum Labour Court, Hyderabad for adjudication u/s (1)(d) of the I D Act,
1947 and the same was taken on file of the Tribunal and registered as I D No 14/2012. This indicates that two I Ds were
registered on the same matter of claiming the employment after leaving the company who worked on temporary basis in
the company. These are yet to come up for regular hearing in the CGIT cum Labour Court, Hyderabad.
NOTE No : 13 :
a) No dividend has been proposed to be distributed to the Equity shareholders for the year. ( Previous year: Nil)
b) The company has not issued any securities during the year for any specific purpose.( Previous Year : Nil )
NOTE NO. 14 - REVENUE FROM OPERATIONS
Particulars
a) Interest Income
(i) On Bank Deposits
(ii) Interest on I.T Refunds
b) Other Income :
i) Dividend Income
from domestic companies
(ii) Investment Business :
Opening Stock
2,83,981
Add : Purchases
0
Total
2,83,981
Sales of stock ( Cost)
0
Closing
2,68,356
Earnings / Net of Investments ( Loss )
For the period April 1, 2013 to

March 31, 2014

March 31, 2014
1,78,53,647
20,896
1,78,74,543
1,61,40,193
0
1,61,40,193
12,096
9,000
3,39,309
-15,625
Total
-3,529
0
2,83,981
-55,328
1,78,71,014
-46,328
1,60,93,865
NOTE NO.15 :- EMPLOYEE BENEFITS EXPENSES

Particulars

March 31, 2014
`
Salaries & Allowances

Contribution to Pension Fund

March 31, 2013
`
9,30,850
7,93,897
44,540
41,620
Gratuity Expense
37,400
Staff welfare expenses
56,777
Total
37,280
10,69,567
54,700
10,69,567
9,27,497
9,27,497
NOTE No : 16 : ADMINISTRATIVE AND OTHER EXPENSES

Particulars

March 31, 2014
`
Travelling & Conveyance

Rent for office Premises

March 31, 2013
`
30,000
24,000
Printing & Stationery
5,807
Postage & Telephones
9,083
Total
12,558
44,890
44,890
259
10,086
46,644
46,644
.17 :-
1, 2013 \ 31, 2014

`

-
-

-

-
-
28,090
16,854
44,944
34,996
0
5,500
0
6,211
91,651
1, 2012 \ 31, 2013

`
28,090
16,854
44,944
34,19,211
84,742
7,224
2,330
6,773
35,65,224
() \
] / ] /
\ ] ]
: 18 : :
1, 2013 \ 31, 2014

`
1, 2012 \ 31, 2013

`
49,29,798
37,45,754
16,02,642
14,35,872
(
)
33,27,156
33,27,156
23,09,882
33,27,156
23,09,882
23,09,882
2013-14 ] 17,85,365/- 20,09,000/- \

, 2012-13 ]
16,14,020/- 9,53,000/- , 1961

/
2010-11 2011-12 20896
] \
2010-11 2011-12 666/- 15,814
: 19 : ] :
1, 2013 \ 31, 2014

1, 2012 \ 31, 2013

`
(i) ]
2.66
1.85

:
:
] (/ )
13,315,065
92,43,932
50,00,000
2.66
50,00,000
1.85
260

NOTE No:17: OTHER EXPENSES
March 31, 2014
Particulars

March 31, 2013
`
Payment to Auditors
-As Auditor
28,090
-For Tax Audit
16,854
28,090
44,944
Legal & Professional fees

Reimbursement of Expenses - Legal
Filing Fees
Computer Maintenance
Miscellaneous expenses
Total
16,854
44,944
34,996
34,19,211
84,742
5,500
7,224
2,330
6,211
6,773
91,651
35,65,224
The staff working in the company are on deputation from Andhra Bank and they are eligible for Employee Benefits as per
the Service Regulations (ABOSR) of Andhra Bank from time to time and the same is being paid / reimbursed to Andhra
Bank. Contribution to Provident / pension Fund and proportionate amount towards Gratuity is also paid to the Andhra Bank
to the extent applicable. No separate fund is being maintained by the company.
NOTE No : 18 : TAX EXPENSE :
Particulars

March 31, 2014
`

March 31, 2013
`
Tax Expense under normal provisions of I.T Act
49,29,798
37,45,754
Less: MAT Credit Entitlement during the year
16,02,642
14,35,872
Provision made for Tax expense for the year

(Equal to the Tax Expense under MAT Provisions
of I.T Act)
33,27,156
33,27,156
Total
23,09,882
23,09,882
33,27,156
23,09,882
The Company has paid the advance Income Tax of ` 20,09,000./- in addition to the TDS of ` 17,85,365/- on interest income
during the year 2013-14. The Company comes under the regular provisions of the Income Tax during the current year but
eligible for MAT credit. During the previous year 2012-13 the company has paid an advance Income tax of ` 9,53,000/- in
addition to the TDS of ` 16,14,020/- on interest income and the company comes under normal provisions of the Income
Tax Act 1961.
Tax refunds / Expense for earlier Asst. Years :
During the year the company has received the income tax refunds relating to the Asst. Years 2010-11 and 2011-12.Out of
the refunds an interest income of ` 20,896 was included in the other income during the year. After reversing the existing
provision for tax, TDS & Advance Tax paid to the relevant assessment years, a net tax expense of ` 666 and ` 15,814 was
accounted for the earlier assessment years 2010-11 and 2011-12 respectively.
NOTE No : 19 : EARNINGS PER EQUITY SHARE :
Particulars

March 31, 2014
`
(i) BASIC & DILUTED : Earnings per Equity Share

March 31, 2013
`
2.66
1.85
Calculation of EPS :
A : Net Profit
1,33,15,065
92,43,932
B : Weighted Average Number of Equity Shares
50,00,000
50,00,000
BASIC & DILUTED Earnings per Equity Share ( A / B )
2.66
1.85
261
: 20 : ] :
) ] 9 ] 1997 { ]
(\) .2238/\ 0472/2004-05 28] 2005 ( ) ]
] ( )
]. ( ) \ \ ] 3
( ) \ ] ( ) ]
]. ( ) ] \ \
03.02.2005 . ( ) , .
) ( ) 09.01.2008 \
( ) ].. { 05.12.2008
] .
: 21 : \ :
) , 1956 \ 6 -1 -2 ] ]
, ] .
) \ / / .
262

NOTE No : 20 : Status of Registration as NBFC :
a) As per the directions issued by Reserve Bank of India for registration of Non Banking Financial Companies on 9th
January 1997, the Companys (ABFSL) application for registration was rejected by RBI vide their letter No. DNBS (H) CMS
No.2238/HYQ 0472/2004-05 dated 28thJanuary 2005 requiring the Company (ABFSL) to pass a specific Board Resolution
not to carry on the business of an NonBanking Financial Institution. RBI further informed the Company (ABFSL) to
ensure that within a period of 3 years from the date of issue of their said letter, the financial assets of the Company (ABFSL)
are disposed of and the Company (ABFSL) is converted into a Non-Banking Non-Financial Institution or is wound up.
Accordingly the Company (ABFSL) passed Board Resolution on 03.02.2005 to explore the course of suitable action by the
Managing Director at the earliest.The Company (ABFSL) has disposed of the financial assets except the shares.
b) The Company (ABFSL) has informed Reserve Bank of India on 09.01.2008 about disposal of the Financial Assets and
requested to treat the Company (ABFSL) as Non-Banking Non-Financial Institution. Reserve Bank of India replied on
05.12.2008 that it has taken the contents mentioned therein on record.
NOTE No : 21 : Other Information :
a) Information with regard to the matters in the other clauses of Part-I and Part II of Schedule VI to the Companies Act,
1956 to the extent they are either NIL or not applicable to the Company has not been given.
b) The figures of the previous year have been regrouped/reclassified/rearranged wherever necessary to confirm the Current
Years presentation.
263
25.09.2013

2013-14
,
. ()
, 31 \, 2014 -
- , - 23

22.01.2011

25.09.2013

31 \, 2014
-
05.07.2010

25.09.2013

( . )
2013-14
2012-13
193.06
160.94
26.41
45.40
166.65
115.54
0.06
0.01
166.59
115.53
33.27
23.09
133.32
92.44
0.17
133.15
92.44
]-
(1176.15)
(1268.59)
- ]

(1043.00)

\

-

- \

\
-
18.11.2013 31.05.2014

, 22.01.2014
] ,

22.01.2014 .
, 22.01.2014

, 1956 260 ,
, ]
] ] \ , ] ,
4. ] , , :
(1176.15)
, 1988 ( )
[ ] , 1956 217(1)()
] ] , ,

1. \
] ]
- \,
2013-14 (2012-13 92.44 ) 133.15 .
31 \, 2014 (2012-13 1176.15
.) 1043.00 . \
5. \ :
, 1975 (\ ), , [
] , 1956 217 (2)
] \ \
2. ] ]
] ]
] ]
] ] - 2013-14 ,
- ({ ) -, 1998
, ]
2014-15 ] ]

60,00,000/- . .5,00,000/-

6.
, , 1956
217 (2) ,
-
3.
(i) 31 \ 2014 ,
, ,

., ] 06.07.2011 ,
,
264

25.09.2013.The directors place on record their appreciation
of the valuable contribution made during his tenure in the
Board.
Directors Report 2013-14

To the Members,
On behalf of the Board of Directors of Andhra Bank Financial
Services Limited (ABFSL), it is my privilege to present the
23rd Annual Report of the performance of your company
together with the Audited Accounts and Auditors Report for
the year ended 31st March, 2014.
Smt.Prameela Rani has been on the Board since

22.01.2011, resigned from the Board on her retirement
as General Manager from the Andhra Banks service on
superannuation and the same has been accepted w.e.f
25.09.2013.The directors place on record their appreciation
of the valuable contribution made during her tenure in the
Board.
The Financial Highlights of the Company for the year ended

31st March, 2014 is summarised below:
(Amount ` in Lakhs)
Total Income
Operating and Administrative
Expenses
Profit before depreciation
Less: Depreciation
Profit Before Tax
Less: Provision for Current Taxation
net of MAT credit entitlement
2013-14
2012-13
193.06
160.94
26.41
45.40
166.65
115.54
0.06
0.01
166.59
115.53
33.27
23.09
133.32
92.44
0.17
133.15
92.44
Add: Balance in the Profit & Loss

A/c
(1176.15)
(1268.59)
Balance in P & L A/c to be

carried to Balance Sheet
(1176.15)
Profit after tax

Less: Income Tax for earlier years
Total
(1043.00)
Shri B.Narendranatha Reddy has been on the Board

since 05.07.2010, resigned on his retirement as General
Manager from the Andhra Banks service on superannuation
and the same has been accepted w.e.f 25.09.2013.The
directors place on record their appreciation of the valuable
contribution made during his tenure in the Board.
Shri K Koteswara Rao was reappointed as Managing
Director for a period from 18.11.2013 and up to 31.05.2014.
Smt Prasanna Panicker, General Manager of Andhra Bank
has been appointed as an additional director with effect from
22.01.2014 on the Board. Shri Vijay Bhushan Bhagavathi,
General Manager of Andhra Bank has been appointed as an
additional director with effect from 22.01.2014 on the Board.
Shri B Bhaskara Sarma, General Manager of Andhra Bank
has been appointed as an additional director with effect from
22.01.2014 on the Board of the company.
As per the provisions of section 260 of the Companies Act
1956, these Directors hold the office up to the date of the
next Annual General Meeting or the last date, on which the
Annual General Meeting should have been held, whichever
is earlier.
1. Review of Operations:
4. Conservation of Energy, Technology Absorption,

Foreign Exchange Earnings and outgo:
The income mainly consists of interest income on deposits.

The company earned a net profit of ` 133.15 lacs during
the year 2013-14 ( ` 92.44 in 2012-13) after providing for
depreciation and Income Tax net of MAT credit entitlement.
The company still carries an accumulated loss of ` 1043.00
lacs as on 31st March, 2014 (` 1176.15 lacs in 2012-13).
The particulars relating to Conservation of Energy,

Technology Absorption, Foreign Exchange Earnings and
outgo, as required to be disclosed under Section 217 (1)
(e) of the Companies Act, 1956 read with the Companies
(Disclosure of particulars in the Report of Board of Directors)
Rules, 1988 are either NIL or are not applicable.
2. Public Deposits:
The company has not accepted any public deposits during
the year and is not holding any deposits outstanding under
this head as such, no amount on account of principal or
interest on public deposits was outstanding as on the date
of balance sheet. During the year 2013-14, the company
has not accepted any deposits from the public within the
meaning of provisions of Non-Banking Financial Companies
(Reserve Bank) Directions, 1998. The Board of Directors
of the company also resolved not to accept any Public
Deposits during the year 2014-15.
5. Particulars of Employees:
As required under Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees)
Rules, 1975 as amended may be treated as NIL as no
employee of the company is drawing a remuneration of `
60,00,000/- p.a. or ` 5,00,000/- p.m.
6. Directors Responsibility Statement:
Pursuant to the requirement under Section 217 (2AA)
of the Companies Act, 1956 with respect to Directors`
Responsibility Statement, the directors hereby confirm that:
3. Board of Directors:
Shri R Athmaram, director, who has been on the Board
since 06.07.2011, resigned from the Board on account of his
elevation to Executive Director in the Bank of Maharashtra
from Andhra Bank and the same was accepted w.e.f
(i) in the preparation of the Accounts for the financial

year ended 31st March 2014, the applicable Accounting
Standards have been followed along with proper explanation
relating to material departures;
265
(ii) \
]

/
(iii) \
, 1956

(iv) 31 \, 2014

7. .
, 1956 292 ,

1. ...\

2. ..

3. ..

4. .

8.
2013-14
] ,
, , 1956
619()
9.
,
{
-

:
:24.04.2014.
266
(..)

8. Auditors:
(ii) they have selected such accounting policies and applied

them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair
view of the state of affairs of the company as at the end of
the financial year and of the profit / loss of the company
for the financial year;
The Comptroller & Auditor General of India has appointed

M/s Nalini & Murali Associates, Chartered Accountants,
Hyderabad as Statutory Auditors of the Company for the
financial year 2013-14. The provisions of Section 619 (B)
of the Companies Act, 1956 are applicable to the Company.
(iii) the directors have taken proper and sufficient care

for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
9. Acknowledgments:
The Directors thank Reserve Bank of India and Comptroller
& Auditor General of India for their valuable guidance,
support and cooperation to the company.
The directors gratefully acknowledge the support and
direction provided by the parent Bank i.e. Andhra Bank.
The Board further places on record of its appreciation for
the services rendered and valuable guidance provided by
the directors during their tenure in the Board.
(iv) the directors have prepared the Annual Accounts for

the financial year ended 31st March 2014 on a going
concern basis.
7. Audit Committee:
In accordance with the provisions of section 292A of the
Companies, Act 1956, the company re-constituted the Audit
Committee comprising of the following
1. Shri T V S Chandrasekhar
2. Shri K V Kannan
3. Shri V B Bhagavathi
4. Shri B Bhaskara Sarma
:
:
:
:
For and on behalf of the Board of Directors

Place: Hyderabad
Date :24.04.2014.
Chairman of the Committee

Director
Director
Director
267
(K K MISRA)
CHAIRMAN
20 ] {
.28.01.2005
, ] ,
, {
. 09.01.2008
] {
.05.12.2008

] ]

] ]

.1 ,
,

\
, \
] -
\
) , \ 31, 2014
) ,
,
) - ,

1. 227 - (4)
] ( ) , 2003
() , 4 5

2. 227(3) ,

) \ , ]
]

) \ ,
]\ ]
\
) -,

) \ , -,
, 1956 211
(3)
) \ 31, 2014
, ] ,
, 1956 274 (1)
(])

()
- , ] \ 31, 2014
-
- \
] , ]
, 1956 () 211 -
(3) - ,
- \

- ]
, ] \
\

]
-
]
\ -
\
-
\
\ ,
\ ] -
] ,
- \

\
-
-

] 9,1997 {
, 1934 (1934 2) 56 1
] ]
- {
28.01.2005 \
268

As per the directions of RBI vide their Lr dt.28.1.2005, the
company has disposed off all its financial assets except
certain shares which are in the physical form. Further, the
company has approached RBI vide Lr dt.09.01.2008 with a
request to treat it as Non Banking Non Financial Institution.
RBI replied on 05.12.2008 that it has taken the contents
mentioned in the record.
AUDITORS REPORT
To
The Members of
Andhra Bank Financial Services Limited.
We have audited the accompanying financial statements of
Andhra Bank Financial Services Limited (the Company),
which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of
significant accounting policies and other explanatory
information.
The Board of directors of the company has passed a

resolution for non acceptance of any public deposits.
The company has not accepted any public deposits
during the year under reference
The company subject to point no -1 has complied with
prudential norms relating to the Income recognition,
accounting standards, asset classification and provision
of bad and doubtful debts as applicable to it.
Management is responsible for the preparation of these

financial statements that give a true and fair view of the
financial position, financial performance and cash flows
of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility
includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation
of the financial statements that give a true and fair view
and are free from material misstatement, whether due to
fraud or error.
In our opinion and to the best of our information and

according to the explanations given to us, the financial
statements give the information required by the Act in
the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted
in India:
a) in the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the profit
for the year ended on that date; and
Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing issued by
the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free
from material misstatement.
c) in the case of the Cash Flow Statement, of the cash

flows for the year ended on that date.
1. As required by the Companies (Auditors Report) Order,
2003 (the Order) issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the
Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the
auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Companys
preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate
in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation
of the financial statements.
2.
As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations

which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) in our opinion proper books of account as required by
law have been kept by the Company so far as appears
from our examination of those books
c) the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement dealt with by this Report are in
agreement with the books of account.
We believe that the audit evidence we have obtained is

opinion.
d) in our opinion, the Balance Sheet, Statement of Profit

and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956;
The company incorporated prior to January 9, 1997 has

applied for the registration as provided in the section 56 IA
of the Reserve Bank of India Act, 1934 (2 of 1934) and has
received a communication dt.28.1.2005 from the Reserve
bank of India rejecting the application for certificate of
registration as an NBFC. Attention is invited to note No 20.
e) on the basis of written representations received from

the directors as on March 31, 2014, and taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31, 2014, from being appointed
as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
269
31 \ 2014
. -
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:06906
( . )
^
.: 026421

: 24.04.2014
270

The Annexure referred to in paragraph 1 of the Our
Report of even date to the members of Andhra Bank
Financial Services Limited on the accounts of the
company for the year ended 31st March, 2014.
f) Since the Central Government has not issued any

notification as to the rate at which the cess is to be paid
under section 441A of the Companies Act, 1956 nor has
it issued any Rules under the said section, prescribing
the manner in which such cess is to be paid, no cess is
due and payable by the Company.
On the basis of such checks as we considered appropriate

and according to the information and explanation given to
us during the course of our audit, we report that:
For NALINI & MURALI ASSOCIATES.

FRN:06906S
1. (a) The company has maintained proper records showing

full particulars including quantitative details and situation
of its fixed assets including that of leased assets.
(b) As explained to us, fixed assets have been physically
verified by the management at reasonable intervals;
other than those assets that have been leased out by
the company no material discrepancies were noticed on
such verification.
(CA A. NALINI MOHANA RAO)

PARTNER
M.No: 026421
Place: Hyderabad
Date : 24.04.2014
(c) In our opinion and according to the information

and explanations given to us, no fixed asset has been
disposed during the year and therefore does not affect
the going concern assumption.
2. (a)As explained to us, the stock of shares, scrip, and
bonds have been physically verified during the year by
the management at reasonable intervals.
(b) In our opinion and according to the information and
explanations given to us, the procedures of physical
verification of inventories followed by the management
are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) In our opinion and on the basis of our examination of
the records, the Company is generally maintaining proper
records of its shares, scrip, and bonds. No material
discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given
to us and on the basis of our examination of the books
of account, the Company has not granted any loans,
secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section
301 of the Companies Act, 1956. Consequently, the
provisions of clauses iii (b), iii(c) and iii (d) of the order
are not applicable to the Company.
(b) According to the information and explanations given
to us and on the basis of our examination of the books
of account, the Company has not taken loans from
companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act,
1956. Thus sub clauses (f) & (g) are not applicable to
the company.
4. In our opinion and according to the information
explanations given to us the company has no internal
audit system. However the internal control procedures
in place are commensurate with size and nature of
business.
5. There are no transactions that need to enter into a
register in pursuance of sec 301 of Companies Act.
271
6. , 1956 58 58
] ]
17. \

7. , 1956 209 (1) ()

18. ]
8. \ , \
\ ]
19. \
,

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6
31 \, 2014

:06906
() \ , -,
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.: 026421
9.
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: 24.04.2014
10. \
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11. \ ,
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12. \ /\ /
, / /, 2003
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13. \ , ,
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15. \ 31 \, 2014
]\ \,
-

16. \

272

6. The Company has not accepted any deposits from
the public covered under section 58A and 58AA of the
Companies Act, 1956.
management, we report that the Company has not made

any preferential allotment of shares during the year.
17.The Company has no outstanding debentures during
the period under audit.
7. The company is not required to maintain cost records

u/s 209(1)(d) of the Companies Act, 1956.
18.The Company has not raised any money by public issue

during the year.
8. As per information & explanation furnished to us and in

our opinion, Provident Fund & ESI Act are not applicable
to the company
19.Based on the audit procedures performed and the

information and explanations given to us, we report that
no fraud on or by the Company has been noticed or
reported during the year, nor have we been informed of
such case by the management.
(a) According to the records of the company, undisputed

statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent
applicable and any other statutory dues have generally
been regularly deposited with the appropriate authorities.
According to the information and explanations given to
us there were no outstanding statutory dues as on 31st
of March, 2014 for a period of more than six months from
the date they became payable.
For NALINI & MURALI ASSOCIATES

FRN 06906S
(CA A. NALINI MOHANA RAO)
Partner
M.No: 026421
(b) According to the information and explanations given

to us, there is no amounts payable in respect of income
tax, wealth tax, service tax, sales tax, customs duty and
excise duty which have not been deposited on account
of any disputes.
Place: Hyderabad
Date : 24.04.2014
9. The Company has the accumulated loss and has not

incurred cash loss during the financial year covered by
our audit and in the immediately preceding financial year.
10.Based on our audit procedures and on the information
and explanations given by the management, we are
of the opinion that, the Company has not defaulted in
repayment of dues to a financial institution, bank or
debenture holders.
11.According to the information and explanations given to
us, the Company has not granted loans and advances
on the basis of security by way of pledge of shares,
debentures and other securities.
12.The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the
Companies (Auditors Report) Order, 2003 (as amended)
is not applicable to the Company.
13. According to information and explanations given to us,
the Company is not trading in Shares, Mutual funds &
other Investments.
14.Based on our audit procedures and on the information
given by the management, we report that the company
has not raised any term loans during the year.
15.Based on the information and explanations given to us
and on an overall examination of the Balance Sheet of
the Company as at 31st March, 2014, we report that no
funds raised on short-term basis have been used for
long-term investment by the Company.
16.Based on the audit procedures performed and the
information and explanations given to us by the
273
274
//

CONSOLIDATED FINANCIAL STATEMENTS OF ANDHRA BANK
AND ITS SUBSIDIARY/ ASSOCIATE/ JOINT VENTURES
275
/ /
CONSOLIDATED BALANCE SHEET OF ANDHRA BANK AND ITS SUBSIDIARY/ASSOCIATE/JOINT VENTURES
(` ] ) (` in `000)
\
31.03.2014 31.03.2013
Schedule No.
As on 31.03.2014
As on 31.03.2013
Particulars
SOURCE OF FUNDS
] Capital
1
~ Reserves & Surplus
2
] Deposits
3
Borrowings
4
5
TOTAL
] APPLICATION OF FUNDS
6
\ Balances with
Banks and Money at Call and Short Notice
7
Investments
8
Advances
9
\ Fixed Assets
10
Other Assets
11
TOTAL
12
Bill for Collection
17
Notes on Accounts
18
\
The Schedules referred to above form an integral part of Balance Sheet.
..]

. .

... \

589,61,49
8171,63,08
141880,32,95
13192,99,18
5565,00,18
169399,56,88
559,58,04
7894,56,09
123796,45,26
11125,77,73
4182,95,17
147559,32,29
7912,29,66
6084,44,71
2008,62,28
46770,98,47
107664,90,54
449,80,05
4592,95,88
169399,56,88
40639,05,15
5294,45,31
1021,94,00
38376,00,98
98373,30,10
322,21,08
3381,41,42
147559,32,29
28299,20,68
4328,67,19
] \
*

004453
( )
(.. 213675)
:
: 31.05.2014

:004137
( .)
(.. 205869)

:108959
( )
(.. 104659)

:312063
( )
(.. 050395)
276

: 310100
( . )
(.. 208606)
/ /
CONSOLIDATED PROFIT & LOSS ACCOUNT OF ANDHRA BANK AND ITS SUBSIDIARY/ASSOCIATE/JOINT VENTURES
Particulars
\
Schedule No
INCOME
\ ] Interest Earned
Other Income
EXPENDITURE
] Interest Expended
\ Operating Expenses

Provisions and Contingencies
TOTAL INCOME
(` ] ) (` in `000)
31.03.2014
Year Ended 31.03.2014
31.03.2013
13
14
14397,05,19
2035,84,75
16432,89,94
12972,06,01
1570,23,71
14542,29,72
15
16
10558,12,78
3119,47,83
9151,23,54
2633,42,89
2326,43,20
1480,19,33
TOTAL EXPENDITURE
16004,03,81
13264,85,76

Profit before Extraordinary Items and Share of Profit in Associate
428,86,13
1277,43,96
Extraordinary Items
Share of Profit in the Associate
11,25,13
7,10,44
Consolidated Net Profit for the Year
440,11,26
1284,54,40
Consolidated Net Profit brought forward
23,92,03
36,68,08
TOTAL
464,03,29
1321,22,48
] APPROPRIATIONS
111,14,48
323,70,47
] Transfer to Capital Reserve
2,64,00
11,38,00
] Transfer to Revenue & Other Reserves
103,99,85
324,87,93
Transfer to Special Reserve under IT Act
195,00,00
310,00,00
Interim/Proposed Dividend
64,85,76
279,79,02
Tax on Dividend
11,02,26
47,55,03
] Balance carried over to Balance Sheet
(24,63,06)
23,92,03
TOTAL
464,03,29
1321,22,48
17
Notes on Accounts
18
( ) Earnings Per Share (Basic and Diluted) `
7.75
22.96
\ . The Schedules referred to above form an integral part of Profit & Loss Account
C.VR.RAJENDRAN
S.K.KALRA
Executive Director
General Manager
PANKAJ CHATURVEDI
Director
Y. AMARNATH
* As per our report of even date.

FRN:004453S

FRN:004137S
FOR PATRO & CO

FRN:310100E
(CA A.SIVA PRASAD)

(CA R.PRAKASH)

Place : Hyderabad
Date : 31.05.2014
FOR C R SAGDEO & CO

FRN:108959W
(CA ANOOP C SAGDEO)

FRN:312063E
277
- \
SCHEDULES FORMING PART OF CONSOLIDATED BALANCE SHEET
(` ] ) (` in `000)
Particulars
\ SCHEDULE-1:: ] CAPITAL
I. ] Authorised Capital
10/- 300,00,00,000
300,00,00,000 Equity Shares of ` 10/- each
II.], , Issued,Subscribed, Called up and Paid up
10/- 58,96,14,903 ( 55,95,80,364 )
( 35,46,14,903 )
( 32,45,80,364 )
58,96,14,903 Equity Shares of ` 10/- each (Previous year 55,95,80,364
Equity Shares) [Including 35,46,14,903 Equity Shares (Previous year
32,45,80,364 Equity Shares) held by Central Government]
\ TOTAL SCHEDULE- I
\ SCHEDULE- 2 : RESERVES AND SURPLUS
I. Statutory Reserve
Opening Balance
Total- I
II.] Capital Reserve
Opening Balance
Total-II
III. Share Premium
Opening Balance
TOTAL - III
IV. ] Revenue Reserve
Opening Balance
- ] Less : Deductions
Total-IV
V. Foreign Currency Translation Reserve
Opening Balance
- Less : Deductions
Total-V
VI. Special Reserve U/s 36 (1) (viii) of IT ACT
Opening Balance
- Less : Deductions
Total-VI
Balance in Profit & Loss Account
\ TOTAL SCHEDULE- 2
278
31.03.2014
As on 31.03.2014
31.03.2013
As on 31.03.2013
3000,00,00
3000,00,00
589,61,49
589,61,49
559,58,04
559,58,04
2355,83,14
111,14,48
2466,97,62
2032,12,67
323,70,47
2355,83,14
365,22,71
2,64,00
367,86,71
353,84,71
11,38,00
365,22,71
1817,41,96
169,96,55
1987,38,51
1817,41,96
1817,41,96
2551,54,54
103,99,85
263,42,92
2392,11,47
2226,66,61
324,87,93
2551,54,54
5,61,71
6,40,55
10,43
11,91,83
48,95
5,12,76
5,61,71
775,00,00
195,00,00
970,00,00
(24,63,06)
8171,63,08
465,00,00
310,00,00
775,00,00
23,92,03
7894,56,09
- \
Particulars
(` ] ) (` in `000)
31.03.2014
As on 31.03.2014
31.03.2013
As on 31.03.2013
27,09,59
37,91,06
ii) From Others
7470,70,07
6991,98,62
I- Total I-A
7497,79,66
7029,89,68
i) From Banks
ii) From Others
27693,20,24
24730,40,43
I- Total I-B
27693,20,24
24730,40,43
3,05,71
43,76,35
ii) From Others
106686,27,34
91992,38,80
I- TOTAL I -C
106689,33,05
92036,15,15
TOTAL-I
141880,32,95
123796,45,26
II-. ] A. Deposits of Branches in India
141811,85,67
123776,57,91
68,47,28
19,87,35
TOTAL-II
141880,32,95
123796,45,26
141880,32,95
123796,45,26
6396,00,00
3341,15,00
6,43,84
iii) ] iii) Other Institutions & Agencies

(Including Subordinated/IPDI/Upper Tier-II Debts/Bonds)
4729,92,43
4857,65,59
II. BORROWINGS OUTSIDE INDIA
2067,06,75
2920,53,30
13192,99,18
11125,77,73
\ SCHEDULE- 3 :: ] DEPOSITS
I-. ] A. Demand Deposits
i) From Banks
I-. \ ] B. Saving Bank Deposits
I-. ] C. Term Deposits

i) From Banks
II-. ] B. Deposits of Branches outside India
\ SCHEDULE - 4 :: BORROWINGS
I. Borrowings in India
i) { From Reserve Bank of India
ii) From Other Banks
\ TOTAL SCHEDULE- 4
279
- \
(` ] ) (` in `000)
Particulars
31.03.2014
As on 31.03.2014
31.03.2013
As on 31.03.2013
\ SCHEDULE - 5 ::
OTHER LIABILITIES AND PROVISIONS
I. Bills Payable
II. ] () Inter Office Adjustment (Net)
III.\ ] Interest Accrued
IV.
Contingent Provisions Against Standard Assets
V. Deferred Tax Liability (Net)
VI. ( ) Others (Including Provisions)
649,36,04
238,09,41
647,21,83
116,73,20
780,50,00
384,39,95
3512,64,78
583,50,00
53,97,67
2781,52,47
5565,00,18
4182,95,17
\ SCHEDULE - 6 :: {
CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. ( ) Cash In Hand (Including Foreign Currency Notes)
II. { Balance with Reserve Bank of India
i) \ In Current Accounts
ii) In Other Accounts
511,80,45
696,37,78
7400,49,21
-
5388,06,93
-
7912,29,66
6084,44,71
I. In India
i). Balances with Banks
).\ a) In Current Accounts
). b) In Other Accounts
157,67,28
1393,65,45
249,57,20
233,39,86
TOTAL
1551,32,73
482,97,06
ii) \ Money at Call and Short Notice

) a)With Banks
) b) With Other Institutions
TOTAL
1551,32,73
482,97,06
II. Outside India

i).\ In Current Accounts
ii). In Other Deposit Accounts
303,88,32
1,78,69
448,93,20
45,59,56
iii) \ Money at Call and Short Notice
151,62,54
44,44,18
TOTAL - II
457,29,55
538,96,94
2008,62,28
1021,94,00
\ SCHEDULE - 7 :: \
BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
TOTAL - I
280
- \
Particulars
(` ] ) (` in `000)
31.03.2014
As on 31.03.2014
31.03.2013
As on 31.03.2013
40422,58,00
151,10,59
734,01,88
3372,27,49
33201,85,96
92,63,59
639,46,21
1444,57,88
51,27,81
2034,93,09
40,02,69
2957,44,65
46766,18,86
38376,00,98
4,79,61
4,79,61
] Grand Total (I and II)
46770,98,47
38376,00,98
Gross Investments
: Less : Depreciation
47055,11,11
284,12,64
38540,58,77
164,57,79
46770,98,47
38376,00,98
\ SCHEDULE - 8 :: INVESTMENTS
I. Investments in India
i). Government Securities
ii). Other Approved Securities
iii). Shares
iv).\ Debentures and Bonds
v). /
Subsidiaries and/or Joint Ventures
vi). Others (IDBI Deposits, I.V.Ps,Units of Mutual Funds etc.)
TOTAL - I
II. Investments outside India
i). Government Securities (Including local authorities)
ii). /
Subsidiaries and/or Joint Ventures abroad
vi). Other Investments
TOTAL -II
281
- \ SCHEDULES FORMING PART OF CONSOLIDATED BALANCE SHEET
(` ] ) (` in `000)
Particulars
\ SCHEDULE - 9 :: ADVANCES
I- I-A.Bills Purchased and Discounted
I-. ,
I-B.Cash Credits,Overdrafts and Loans
I-. I-C.Term Loans
TOTAL - I
II-. (- )
II-A.Secured By Tangible Assets (Includes Advances against Book Debts)
II-. /
II-B.Covered by Bank/Government Guarantees
II-. II-C.Unsecured Advances
TOTAL - II
III-A. III-A. Advances in India
i) Priority Sector
ii) ] Public Sector
iii) Banks
iv) Others
TOTAL
III-B. Advances outside India
TOTAL - III
\ SCHEDULE - 10 :: \ FIXED ASSETS
A. Tangible Assets
I. Premises
] Additions during the year
Deletions/Deductions during the year
Depreciation to date
II. \ Other Fixed Assets
Depreciation to date
III. ] \ Capital Work in Progress
Value at the end of the Year
B. Intangible Assets
I. Computer Software
/ Depreciation/Amortization to date
II.Goodwill
282
31.03.2014
As on 31.03.2014
31.03.2013
As on 31.03.2013
2541,53,51
2089,14,89
57195,23,82
47928,13,21
107664,90,54
50523,70,79
45760,44,42
98373,30,10
96654,15,05
86735,93,73
4892,16,19
6118,59,30
107664,90,54
4997,01,03
6640,35,34
98373,30,10
40647,54,70
6413,20,89
60584,91,19
107645,66,78
19,23,76
107664,90,54
107664,90,54
34621,93,81
7618,96,91
56132,39,38
98373,30,10
98373,30,10
98373,30,10
119,34,82
4,30,81
40,89,75
82,75,88
117,44,02
2,51,00
36,36,98
83,58,04
866,63,83
151,42,68
19,52,17
710,17,81
288,36,53
803,32,20
76,67,37
13,95,94
652,12,71
213,90,92
4,33,29
56,12,12
17,29,55
43,15,86
2,75,97
14,96,32
13,39,00
4,33,29
135,22,55
26,78,95
129,39,76
32,61,74
2,90,04
449,80,05
120,82,00
14,41,54
99
117,73,72
17,48,83
2,90,00
322,21,08
- \
Particulars
(` ] ) (` in `000)
31.03.2014
As on 31.03.2014
31.03.2013
As on 31.03.2013
53,34,14
61,87,66
II. \ ] Interest Accrued
1265,09,09
996,65,78
III. / ( )
Tax Paid in Advance/Tax Deducted at Source (Net of Provision)
2193,53,54
1495,07,82
9,90,20
7,65,32
VI. Others
1071,08,91
820,14,84
4592,95,88
3381,41,42
270,14,44
233,39,16
71,39,27
32,72,14
752,18,25
22094,20,87
8339,33,67
9917,47,08
10318,30,99
6,75,86
VI. ,
Acceptances, Endorsements and Other Obligations
5733,09,06
5578,42,67
VII. Letter of Comfort
1968,22,18
2358,57,26
VIII. ]- Interest Rate Swaps
IX. Disputed Tax Liability (Net)
536,96,57
667,78,78
X. ]
Other Items for which Bank is Contingently Liable
40,79,82
18,47,76
40639,05,15
28299,20,68
\ SCHEDULE - 11 :: OTHER ASSETS

I. ] () Inter Office Adjustment (Net)
IV. Stationery & Stamps

V. () Deferred Tax Asset (Net)
\ SCHEDULE - 12 :: CONTINGENT LIABILITIES

I. ] ]
Claims against Bank not acknowledged as debts
II. ] Capital Commitments
III. Options & Derivatives
IV. Outstanding Forward Exhange Contracts
V.
Guarantees given on behalf of Constituents (BGs)
) a) In India
) b) Outside India
283
- \
Particulars
31.03.2014
\ SCHEDULE - 13 :: ] ] INTEREST EARNED

I. / ]/ Interest/Discount on Advances/ Bills
(` ] ) (` in `000)
31.03.2013
11114,34,46
10327,05,13
3101,59,28
2535,44,23
80,53,07
89,70,72
100,58,38
19,85,93
14397,05,19
12972,06,01
\ SCHEDULE - 14 :: OTHER INCOME

I. , ] Commission, Exchange and Brokerage
262,84,00
266,46,62
II. Profit/(Loss) on Sale of Investments
474,00,53
218,21,20
8,34,47
(10,04,67)
60,42
47,88
88,82,87
102,69,60
5,59,29
4,59,65
VII. Insurance Premium
639,84,91
504,97,54
VII. Miscellaneous Income
555,78,26
482,85,89
2035,84,75
1570,23,71
II. Income on Investments

III. ] -
Interest on balances with Reserve Bank of India and
Other Inter Bank Funds
IV. Others
III. Profit/(Loss) on Redemption of Investments

IV. ,
Profit on Sale of Land, Buildings and Other Assets
V. Profit on Exchange Transactions
VI. Income by way of Dividend
284
- \
Particulars
(` ] ) (` in `000)
31.03.2014
31.03.2013
Year Ended 31.03.2014 Year Ended 31.03.2013
\ SCHEDULE - 15 :: ] INTEREST EXPENDED

I. ] ] Interest on Deposits
9847,42,98
8548,35,36
II. / ]
Interest on Reserve Bank of India/Inter Bank Borrowings
431,48,21
323,64,73
III. Others
279,21,59
279,23,45
10558,12,78
9151,23,54
1420,72,05
1321,10,21
182,05,49
147,43,39
III Printing and Stationery
25,18,81
20,63,69
VI. \ Advertisement and Publicity
23,96,56
18,33,40
V. Depreciation on Banks Property
95,19,49
89,75,87
81,56
81,55
VII. ( )
Auditors Fees and Expenses (Including Branch Auditors fees and expenses)
21,02,93
15,08,17
VIII Law Charges
14,11,34
13,48,36
IX. ,
Postages, Telegrams, Telephones etc.
38,35,93
32,69,30
X. - Repair and Maintenance
98,37,56
85,78,96
XI. Insurance
134,58,21
97,81,31
XII. Benefits Paid relating to insurance activity
733,66,24
527,64,56
XII. Other Expenditures
331,41,66
262,84,12
3119,47,83
2633,42,89
\ SCHEDULE - 16 :: \ OPERATING EXPENSES
I. \
Payment to and Provisions for Employees
II. , ] Rent, Taxes and Lighting
VI. ,
Dirctors Fees, Allowances and Expenses
285
\ - 17 2013-14
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to insurance intermediaries, medical costs, policy printing

expenses, stamp duty and other related expenses to
source and issue the policy.
SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES

FOR THE YEAR 2013-14 CONSOLIDATED
1. GENERAL:
4. REVENUE RECOGNITION:
The financial statements are prepared on historical cost

convention and on accrual basis of accounting, unless
otherwise stated, by following going concern assumption
and conform to the statutory provisions, regulatory
guidelines, Accounting Standards, Guidance Notes issued
by Institute of Chartered Accountants of India ( ICAI) and
practices prevailing in the banking industry in India.
Income and Expenditure are accounted on accrual basis,

except the following;
a. Interest on non-performing advances and non performing
investments is recognized as per norms laid down by
b. Interest on overdue bills, commission, exchange,
brokerage and rent on lockers are accounted on
realization.
2. BASIS OF CONSOLIDATION:
a. Consolidated financial statements of the Group
(comprising of 1 subsidiary, 1 associate and 3 joint
ventures) have been prepared on the basis of:
i.
c. Dividend is accounted when the right to receive the same

is established.
Audited accounts of Andhra Bank (parent).
d. In case of suit filed accounts, related legal and other

expenses incurred are charged to Profit and Loss Account
and on recovery the same are accounted as income.
ii. Line by line aggregation of each item of asset/liability/

income/expense of the subsidiary with the respective item
of the parent, and after eliminating all material intra group
balances/transactions, unrealized profit/loss, as per AS
21 Consolidated Financial Statements issued by The
Institute of Chartered Accountants of India (ICAI).
5. FOREIGN EXCHANGE TRANSACTIONS:

a. Income and Expenditure items are recorded at the
exchange rates prevailing on the date of transaction.
iii. Accounting for investment in Associate under the Equity

Method as per AS 23 Accounting for Investment in
Associates in Consolidated Financial Statements issued
by The Institute of Chartered Accountants of India (ICAI).
b. Monetary Assets and Liabilities are revalued at the

Exchange Rates notified by FEDAI at the close of the year
and the resultant gain/loss is recognized in the Profit and
Loss Account.
iv. Consolidation of Joint ventures Proportionate

Consolidation as per AS 27 Financial Reporting of
Interests in Joint Ventures issued by The Institute of
Chartered Accountants of India (ICAI).
Forward exchange contracts are initially recorded at

exchange rate prevailing at the time of booking of the
contract. These are translated at the year end rates
notified by FEDAI and the resultant gain/loss is taken to
Profit & Loss Account.
v. The financial statements of India International Bank

Malaysia Berhad comply with the Malaysian Financial
Reporting Standards (MFRS), International Financial
Reporting Standards (IFRS) and the requirements of
the Companies Act,1965 in Malaysia.
c. Foreign Letters of Credit/Letters of Comfort and Letters

of Guarantee are recorded at the rates prevailing on the
date of entering into such commitment. Outstanding items
are restated at the rates notified by FEDAI as at the close
of the financial year.
b. The difference between cost to the group of its investment

in the joint venture and the groups portion of the equity of
the joint venture is recognized in the financial statements
as goodwill.
d. Derivative contracts undertaken on back-to-back basis

or for hedging Banks own foreign currency exposure are
recorded at the rate prevailing on the date of the contract
and are reported at the closing rates at the Balance Sheet
date. The revenue in respect of these transactions is
recognized for the proportionate period till expiry of the
contract. In respect of contracts done on back to back
basis, the revenue on early termination of the contract is
recognized on termination.
3. LIFE INSURANCE:
a. Premium is recognized as income when due from
policyholders. For unit linked business, premium income
is recognized when the associated units are created.
Premium on lapsed policies is recognized as income
when such policies are reinstated.
6. INVESTMENTS:
b. Reinsurance premium ceded is accounted for at the time

of recognition of the premium income in accordance with
the terms and conditions of the relevant treaties with the
re-insurer. Impact on account of subsequent revisions to
or cancellations of premium are recognized in the year
in which they occur.
a. Investments are classified and shown in Balance Sheet

under the following six heads:
i.
Government Securities
ii. Other Approved Securities

iii. Shares
c. Acquisition cost is expensed in the period in which they are

incurred. Acquisition costs mainly consist of commission
iv. Debentures and Bonds
287
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288
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v. Subsidiaries / Joint Ventures /Associates and
e. Profit / Loss on Sale of Investments:
vi. Others.
i.
b. Investments are further classified into the following

three categories:
i.
Held to Maturity (HTM)
ii. Profit on sale of investments held in Available for Sale

and Held for Trading categories is recognized in the
Profit and Loss Account.
ii. Available for Sale (AFS)

iii. Held for Trading (HFT)
Held to Maturity category comprises of securities
acquired with the intention to hold them up to maturity.
iii. Profit on sale of investments in Held to Maturity

category is first taken to the Profit and Loss Account
and an equivalent amount of profit is appropriated to the
Capital Reserve (net of taxes and amount required to be
transferred to Statutory Reserve).
Held for Trading category comprises of securities

acquired with the intention of trading.
Available for Sale securities are those which are not
covered under either of the above two categories.
iv. Loss on sale of investments in all the three categories is

recognized in Profit and Loss Account.
Investments in Subsidiaries/Joint ventures/Associates

are classified as Held to Maturity.
f. General
c. Valuation:
i.
The Investments are valued in accordance with Reserve

Bank of India guidelines on the following basis:i.
Profit or loss on sale of investments is recognized

on the value dates on the basis of weighted average
cost. Premium on redemption of Debentures/ Bonds is
recognized on the date of redemption.
Purchase and sale transactions in Government Securities

are recorded on the date of settlement.
ii. a) Transfer of scrips from AFS/HFT category to HTM

category: Transfer is made at the lower of book value or
market value. In cases where the market value is higher
than the book value at the time of transfer, the appreciation
is ignored and the security is transferred at book value.
In cases where the market value is less than the book
value, the provision against depreciation already held
against that security and the additional provision, if any,
required based on valuation done on the date of transfer
is recognized and adjusted to reduce the book value to
the market value and the security is transferred at the
market value.
Held to Maturity:
a. Investments classified under this category are stated

at acquisition cost net of amortization. The excess of
acquisition cost over the face value, if any, is amortized
over the remaining period of maturity.
b. Any diminution, other than temporary in nature, in the
value of investments is determined and provided for on
each such investment individually.
ii. Available for Sale:
a. Investments classified under this category are marked to
market on quarterly basis and valued as per Reserve Bank
of India guidelines at the market rates available on the
last day of each quarter (Balance Sheet date) from trades/
quotes on the Stock Exchanges, prices/yields declared
by the Fixed Income Money Market and Derivatives
Association of India (FIMMDA). Unquoted securities are
also valued as per the Reserve Bank of India guidelines.
b)
In case of transfer of securities from HTM to AFS/HFT

category:
If the security originally placed under HTM category;
- is at a discount, it is transferred to AFS/HFT category at
the acquisition price/ book value.
-is at a premium, it is transferred to AFS/HFT category at
the amortized cost.

After transfer in both the above cases, these securities

are immediately re-valued and resultant depreciation, if
any, is provided.
iii. Held for Trading:
c) In case of transfer of securities from AFS to HFT category

or vice-versa, the securities are not re-valued on the
date of transfer and depreciation already held if any, is
transferred to the provision for depreciation against the
HFT securities and vice-versa.
a. Investments classified under this category are valued at

market price based on market quotations, prices/yields
declared by FIMMDA at the end of every month.
iii. Upfront fee / Incentives on subscription of securities in

HTM / AFS / HFT categories are reduced from the cost of
securities. The incentives received after sale of securities
is credited to Profit and Loss account.
d. Prudential Norms:
iv. Brokerage, Commission, Security Transaction tax and

Stamp Duty paid in connection with the acquisition of
securities are treated as revenue expenditure.
The identification of non performing investments and

provisions made thereon is as per Reserve Bank of India
guidelines.
289
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5 .
7. a. INTEREST RATE SWAPS: (Hedging)
c. AMORTIZATION
i.
i.
Income on continuing swap transactions is recognized on

accrual basis except the swap designated with an asset
or liability that is carried at lower of cost or market value in
the financial statements. In that case, the swap is marked
to market with the resulting gain or loss recorded as an
adjustment to the market value or designated asset or liability
ii. Acquisition cost of software is treated as intangible assets.

a. Software acquired under core banking solution (CBS) is
amortised over its estimated useful life of five years.
ii. Gains/ losses on terminated swap transactions are

recognized when the offsetting gain or loss is recognized
on the designated asset or liability. Thus, the gain or loss
on the terminated swap is deferred and recognized over
the shorter of the remaining contractual life of the swap
or the remaining life of the designated asset/liability.
b. Other software acquired is charged off in the year of

acquisition.
10. EMPLOYEES BENEFITS
a. Short Term Benefits
b. INTEREST RATE SWAPS: (Trading)

i.
Short-term compensated absences are recognized as an

expense on an undiscounted basis in the Profit & Loss
Account of the year in which the related service is rendered.
Trading swaps are marked to market with changes

recorded in the Profit and Loss Account;
ii. Income and Expenses relating to these swaps are

recognized on the settlement date;
b. Long Term Benefits:

Long Term Benefits such as Leave Encashment, Sick Leave,
LFC/LTC availment/encashment, Ex-gratia to retirees and
Relocation expenses on exit are recognized on the basis of
actuarial valuation made as at the end of the year.
iii. Fee is recognized as income or expense as the case may be;

iv. Gains or losses on the termination of the swaps are
recorded immediately as income or expenses on such
termination.
c. Post Employment Benefits
8. ADVANCES
i.
a. Advances are classified in accordance with the Prudential

Norms issued by Reserve Bank of India.
i.
Advances are classified into Standard, Sub-standard,

Doubtful and Loss assets borrower-wise.
Defined Contribution Plans: Defined Contribution Plans

such as Provident / Pension fund are recognized as an
expense and charged to the Profit &Loss Account.
ii. Defined Benefit Plans

a) Gratuity:
ii. Provisions are made for non performing assets in

accordance with the RBI Guidelines, and additional
provisions as assessed
The employees Gratuity Fund Scheme is funded by

the Bank and managed by a separate trust who in turn
manage their funds through approved schemes of Life
Insurance Companies. The present value of the Banks
obligations under Gratuity is recognized on the basis of an
actuarial valuation as at the year end and the fair value
of the Plan assets is reduced from the gross obligations
to recognize the obligation on a net basis.
iii. General provision is made for standard assets.

b. Advances stated in the Balance Sheet are net of
provisions made for Non Performing Assets
c. Partial recoveries in Non Performing Assets are
apportioned first towards charges and interest, thereafter
towards principal with the exception of non performing
advances involving compromise settlements in which
case the recoveries are first adjusted towards principal.
b) Pension:
The employees Pension Fund is funded by the Bank and
is managed by a separate trust. The present value of the
Banks obligations under Pension is recognized on the
basis of an actuarial valuation as at the year end and the
fair value of the Plan assets is reduced from the gross
obligations to recognize the obligation on a net basis.
9. FIXED ASSETS
a. Premises and other Fixed Assets are stated at historical
cost net of depreciation.
b. DEPRECIATION
i.
Premium wherever is paid for acquisition of leasehold land,

such premium along with cost of the buildings constructed
thereon is amortized over the period of lease.
Depreciation on Premises and on other Fixed Assets

except Computers and ATMs is provided on written down
value method at the rates specified in Schedule XIV of
the Companies Act, 1956.
c) Amortization
The additional liability/expenditure arising consequent
upon the reopening of Pension Option to the employees
of the bank and enhancement in gratuity limit pursuant
to amendment to Payment of Gratuity Act, 1972 is being
amortized equally over a period of five years beginning
with the financial year 2010-11.
ii. The depreciation on Computers and other Peripherals is

provided @ 33.33 % on straight line method.
iii. Depreciation on ATMs is provided on straight line method
based on the estimated useful life of seven years.
291
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1961 36(i) (viii)

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11. PROVISION FOR TAXATION:
b. No provision is recognized for :
a. Provision for tax is made for both Current and Deferred Taxes.
i.
b. Deferred tax assets and liabilities arising on account of

timing differences and which are capable of reversal in
subsequent periods are recognized using the tax rates
and laws that have been enacted or substantively enacted
as of the balance sheet date.
ii. any present obligation that arises from past events but is
not recognized because
a) It is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
or
c. Deferred tax assets are not recognized unless there is

virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will
be realized.
b) A reliable estimate of the amount of obligation cannot be

made.
d. Special Reserve:
Such obligations are recorded as Contingent Liabilities.

These are assessed at regular intervals and only that
Part of the obligation for which an outflow of resources
embodying economic benefits is probable, is provided
for, except in the extremely rare circumstances where no
reliable estimate can be made.
Revenue and other Reserves include Special Reserve

created under Section 36 (1) (viii) of the Income Tax Act,
1961.The Board of Directors of the Bank has passed
a resolution approving creation of the reserve and
confirming that there is no intention to make withdrawal
from the Special Reserve.
c. Contingent Assets are not recognized in the financial

statements.
12. IMPAIRMENT OF ASSETS

An assessment is made at each balance sheet date whether
there is any indication that an asset is impaired. If any such
indication exists, an estimate of the recoverable amount is
made and impairment loss, if any, is provided for.
14. NET PROFIT

The Net Profit disclosed in the Profit and Loss Account is
after:a. Provision for depreciation on Investments.
13. Provisions, Contingent Liabilities and Contingent Assets
b. Provision for Taxation.
a. In conformity with AS.29 Provisions, Contingent

Liabilities and Contingent Assets issued by the Institute
of Chartered Accountants of India, the Bank recognizes
provisions only when :
i.
any possible obligation that arises from past events

and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Bank; or
c. Provision on loan losses

d. Provision on Standard Assets.
e. Provision for non-performing investments
it has a present obligation as a result of a past event.
f.
ii. it is probable that an outflow of resources embodying economic

benefits will be required to settle the obligation, and
Other usual and necessary provisions.
15. SUBSIDIARY Andhra Bank Financial Services Ltd.,

For Accounting Policies of subsidiary, reference may be
made to Note No. 2 of financial statements of Andhra
Bank Financial Services Limited.
iii. when a reliable estimate of the amount of the obligation

can be made.
293
\- 18
-2013-14
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(%)
100.00
35.00
30.00
26.02
25.00
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E. The Subsidiary, Associate and 3 Joint Ventures are

following Accounting Policies consistently as per the
prevalent law and practice, which are different from
Parent Bank in a few cases because of respective
business requirements. In the opinion of the management
the impact of the same is not material which requires
adjustment in Consolidated Financial Statements.
SCHEDULE 18
NOTES ON ACCOUNTS TO CONSOLIDATED FINANCIAL
STATEMENTS : 2013-14
A. List of Subsidiary/Associate/Joint Ventures
considered for preparation of consolidated financial
statements:
The 1 Subsidiary, 1 Associate and 3 Joint Ventures
(which along with Andhra Bank, the parent, constitute the
group) considered in the preparation of the consolidated
financial statements, are
a) Subsidiary:
S Entity
Country of Groups
No.
Incorporation Stake (%
1 Andhra Bank Financial Services Limited
India
100.00
b) Associate:
1
Chaitanya Godavari Grameena Bank
India
F. The Book value of the investment of Andhra Bank in

Andhra Bank Financial Services Ltd., has been reduced
to Nil due to depreciation on investments. Therefore, the
share capital of ABFSL held by Andhra Bank, amounting
to ` 5 crore has been reflected as Capital Reserve in the
Consolidated Financial Statements.
G. Accounting for investment in RRB:
In conformity with the guidelines issued by the Reserve
Bank of India the investment in Regional Rural Bank
(RRB) namely Chaitanya Godavari Grameena Bank to the
extent of 35% of the share capital is valued as per equity
method as prescribed under the Accounting Standard
23 issued by the Institute of Chartered Accountants of
India in line with methods followed in previous year.
The value of investment in associate has been adjusted
due to increase in net assets of the associate by
` 48.67 crore (` 37.42 crore). The RRB is duly audited by
other auditors for the year ending on 31st March 2014.
35.00
c) Joint Ventures:
1
India First Life Insurance Company Limited
India
30.00
ASREC (India) Limited
India
26.02
India International Bank(Malaysia) BHD
Malaysia
25.00
B. Basis of preparation of Consolidated Financial

statements.
The Consolidated Financial Statements (CFS) of the
Parent Bank and its Subsidiary, Associate and Joint
Ventures are prepared to comply in all material respects
with applicable statutory / regulatory provisions,
Accounting Standards, Generally Accepted Accounting
Principles and practices prevailing in India, unless
otherwise stated. The financial statements of India
International Bank Malaysia Berhad comply with the
Malaysian Financial Reporting Standards (MFRS),
International Financial Reporting Standards (IFRS) and
the requirements of the Companies Act, 1965 in Malaysia.
H. Accounting for investment in Joint Ventures:

(i) The investments in joint ventures have been accounted as
per Accounting Standard 27 with regard to the Companies
India First Life Insurance Co. Ltd, ASREC (India) Limited
and India International Bank (Malaysia) BHD under
Proportionate Consolidation method. The difference
between the amount invested and the nominal value of
the investment in the equity of the company has been
recognized as goodwill.
(ii) Joint Ventures have been duly audited by their respective
auditors.
C. Consolidation Procedure:
The Consolidated Financial Statements are prepared
in accordance with the Accounting Standards (AS21) Consolidated Financial Statements, (AS-23)
Accounting for Investment in Associates in Consolidated
Financial Statements and (AS-27) Financial Reporting
of Interests in Joint Ventures issued by the Institute of
Chartered Accountants of India (ICAI) and the guidelines
issued by the Reserve Bank of India on preparation
of Consolidated Financial Statements. The financial
statements of the Bank and its subsidiary are combined
on a line by line basis by adding together like sum of
assets, liabilities, income and expenses, after eliminating
material intra group balances / transactions and resulting
unrealized profit / loss.
(iii) Financial statements of India International Bank

(Malaysia) BHD which are considered for incorporation
pertains to the year ended 31st December, 2013 have
been approved by the Board of Directors of India
International Bank (Malaysia) and final approval for the
same from the Bank Negara Malaysia is awaited.
(iv) The differences arising on account of translation of book
value of investment, brought forward loss and opening
balance of fixed assets in overseas joint venture at the
applicable exchange rate has been treated as Foreign
Currency Translation Reserve.
(v) The following Items in consolidated financial statements
as on 31.03.2014 pertain to Indian International
Bank (Malaysia) BHD which are based on a different
accounting policy i.e., Malaysian Financial Reporting
Standards, International Financial Reporting Standards
D. The financial statements of subsidiary, are adjusted, wherever

necessary, to conform to the accounting policies of the Bank.
295
( )
\

] ]

\ ]
\
/()
3
5
6
3.63
0.06
0.01
68.47
1.20
0.21
7
9
10
11
12
13
14
15
16
5.006
1.02
0.33
0.01
2.09
0.32
0.02
0.07
0.30
(0.05)
90.04
19.24
6.27
0.19
39.33
5.98
0.41
1.35
5.69
(0.96)
].

2013-14
. ] ]
2012-13
BASEL II BASEL-III BASEL -II BASEL-III
(i) ]
I + II ]
NA
8.03
NA
NA
(ii) I ] (%)
8.30
0.13
8.42
NA
(iii) II ]
2.93
2.70
3.20
NA
(iv) ] ( )* 11.23
10.86
11.62
NA
(v)

60.14
58.00
(vi) ] ( )
200.00*
--
--
--
(vii) II ]
]
. ] (.10/ )
] ( )(.)
7.75
22.96
(. )
440.11
1284.54

( )
56.79
55.96
] (.)
7.75
22.96
21.12.2013 66.59 . (56.59

) 10/-
300, 34,539

296
^. \ -

(. )
31.03.2014
31.03.2013

()
2.90
2.90
\
2.90
2.90
. (
\ )
2010-11 , {
.. . . 80/ 21.04.018 09 2011
\ \
\ \ .3.50
.10.00
31 \ 2013
.253.33 .93.66 , ]
1/5 .33 , ] \
1/5 , \
.93.67 33.00 . ]
1 2012
. 99.75 (50. )

(in Crore)
Particulars
Schedule
J. The breakup of Goodwill arising on the acquisition

of Joint Venture is as under:
Ringgit Malaysia Indian Rupees
Deposits
3.63
68.47
Other Liabilities
0.06
1.20
Name of the Joint Venture
Cash
0.01
0.21
Balances With Banks &
9.91
186.74
Advances
1.02
19.24
Fixed Assets
10
0.33
6.27
Other Assets
11
0.01
0.19
Contingent Liability
12
2.09
39.33
(` in crore)
Money At Call & Short Notice
Interest Earned
13
0.32
5.98
Other Income
14
0.02
0.41
Interest Expended
15
0.07
1.35
Operating Expenses
16
0.30
5.69
(0.05)
(0.96)
Profit/(Loss)
Adequacy Ratio
(i) Common Equity Tier 1
2013-14
8.03
2012-13
NA
NA
8.30
0.13
8.42
NA
(iii) Tier II Capital ratio (%)
2.93
2.70
3.20
NA
(iv) Total Capital ratio (CRAR) (%)
11.23
10.86
11.62
NA
(v) Percentage of the shareholding
60.14
58.00
of the Government of India

(vi) Amount of equity capital
200.00*
--
--
--
raised (` in crore)
(vii)Amount of subordinated debt
raised by Andhra Bank as Tier-II
capital during the year
B. Earnings per share
(face value of ` 10/- each)
7.75
22.96
Net Profit (` in crore)
440.11
1284.54
Weighted Average No of
56.79
55.96
7.75
22.96
Earnings per Share (Basic and diluted) (`)
Calculation of Basic EPS
Shares (in crore)

Basic Earnings per Share (`)
2.90
2.90
Net Goodwill
2.90
2.90
Provision of ` 99.75 crore (` 50.00 crore) has been made

towards wage revision arrears effective from 1st November,
2012 pending wage negotiation
Capital Ratio (%)

(ii) Tier I capital ratio (%)
ASREC (India) Limited
During the year 2010-11, the Parent Bank opted for

amortization of additional liability arising on account of
exercise of second pension option by the employees and
revision of gratuity limit from ` 3.50 lacs to ` 10 lacs as
per the Payment of Gratuity Act over a period of five years
pursuant to permission given by Reserve Bank of India vide
its circular no. DBOD.BP.BC.80/21.04.018/2010-11 dated
09th of February, 2011. Out of the amount of ` 253.33 crore
carried forward as on 31st March, 2013 an amount of `
93.66 crore being 1/5th of the additional pension liability and
` 33.00 crore being 1/5th of additional liability on account of
gratuity has been charged off to the Profit and Loss Account
for the current year and balance amount of ` 93.67 crore
and ` 33.00 crore has been carried forward.
BASEL II BASEL-III BASEL -II BASEL-III

NA
31.03.2013
K. Prudential Regulatory treatment (reopening of

Pension option and enhancement of gratuity)
I. Additional disclosures for consolidated financial

statements are as under:
A. Capital to Risk
31.03.2014
(*) The Bank has allotted 3,00,34,539 equity shares on

preferential basis to Government of India (GOI) of face value
of ` 10/- each for cash @ ` 66.59 p per share (including
premium of ` 56.59p per share) on 21.12.2013.
297
(. )

31.03.2014
31.03.2013

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

() ]
() /
()
()
:(i)

3

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

4

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

: -
( - )
298
3680.66
6268.65
4676.08
1807.51
16432.90
16432.90
2795.00
6303.72
3768.65
1674.93
14542.30
14542.30
649.99
1107.03
825.78
183.74
2766.54
2026.88
739.66
299.55
440.11
554.16
1249.82
747.20
213.55
2764.73
996.91
1767.82
483.28
1284.54
45356.62
68321.06
38347.04
996.81
16378.04
169399.57
37632.40
64195.44
33020.84
1157.02
11553.62
147559.32
2067.07
66105.94
74477.22
1297.17
16690.92
160638.32
8761.25
169399.57
2920.53
44465.45
63206.53
16124.47
12388.20
139105.18
8454.14
147559.32
L. Consolidated Segments Report:

(` in Crore)
Part A
Year ended
S No.
Business Segments
Segment Revenue
Audited
2795.00
6268.65
6303.72
(c) Retail Banking
4676.08
3768.65
1807.51
1674.93
16432.90
14542.30
Less: Inter Segment Revenue
16432.90
14542.30
649.99
554.16
1107.03
1249.82
(c) Retail Banking
825.78
747.20
183.74
213.55
Total
2766.54
2764.73
Less :(i) Other Un-allocable Expenditure
2026.88
996.91
Total Profit Before Tax
739.66
1767.82
Income tax and other taxes paid
299.55
483.28
Net Profit
440.11
1284.54
Segment Results
(a) Treasury
Segment Assets
(a) Treasury
45356.62
37632.40
68321.06
64195.44
(c) Retail Banking
38347.04
33020.84
996.81
1157.02
16378.04
11553.62
169399.57
147559.32

(e) Unallocable Assets
Total Assets
4
Audited
3680.66
Income from Operations
31.03.2013
(a) Treasury
Total
31.03.2014
Segment liabilities
(a) Treasury
2067.07
2920.53
66105.94
44465.45
(c) Retail Banking
74477.22
63206.53
1297.17
16124.47
16690.92
12388.20
160638.32
139105.18
8761.25
8454.14
169399.57
147559.32

(e) Unallocable Liabilities
Total
Capital & Reserves
Total Liabilities
Part B Geographic Segments: There is only one segment - Domestic Segment
(Compiled by the Management and relied upon by the Auditors)
299
. ( 22):
31.03.2014
. :
( )
31 \ 2014
31 \ 2013

50.98
16.31
(1) , ]

(2)
0.43
(3)
0.03
(4)- ,1961
5.32 11.80
/

(5)
43.05
- 82.09
\

(6) 36(1)
329.70
(viii)

(7) \
57.76

(8)
0.01
51.44 435.84 28.11 82.09

. . . 77/21.04.018/2013-14
20.12.2013 - , 1961
36(1) (Viii) ] 31 \,
2013 263.42
- , 1961 36(i)(viii)
()
2013-14 66.28
..]

004453
( . )
(..213675)
:
: 31.05.2014

-
(i)
188.66
97.69
(ii) ]
1477.17
615.12
(iii)
197.00
177.00
(iv)
232.55
519.56
(v)
67.00 (36.28)
(v) :
)
50.00
42.28
)
114.05
64.82
2326.43 1480.19
\ / , 3
, .8171.63
, ] . 8147.84 .23.79
, 3 (
. 7894.56 ] . 7881.60
. 12.96 ,
[. -
\ \
()
] ,
] , \
. ()

. ] \
/:/:
\ 1 18
.

... \

( )
2013-14 2012-13
] \

:004137
( .)
(.. 205869)

:108959
( )
(.. 104659)

:312063
( )
(.. 050395)
300

: 310100
( . )
(.. 208606)
M. Accounting for taxes on income (AS 22):

The major components as on 31.03.2014 are as follows:
( ` in Crore)
Timing Difference
31st March-2014
DTA
DTL
31st March-2013
DTA
DTL
(1) Provision created in

books but not claimed
as deduction
(2) Provision for Impairment
of Investments
(3) Provision for Expenses
(4) Excess/Less Depreciation
claimed as per Income
Tax Act, 1961
(5) On account of amortization
of additional liability due
to re-opening of pension
option and revision in
ceiling of gratuity
(6) On account of Special
Reserve created under
section 36 (1)(viii) of the Act
(7) On account of pension and
gratuity fund contributed
(8) Other items
Total
50.98
16.31
N. Provisions and Contingencies:

(` in Crore)
Breakup of Provisions and
Contingencies shown under the head
Expenditure in Profit and Loss Account
(i) Depreciation in value of Investments
(ii) Non Performing Assets
(iii) Standard Assets
(iv) Taxes
(v) Deferred Tax
(vi) Other provisions and contingencies:
a) Restructured advances
b) Other provisions
TOTAL
0.43
0.03
51.44
5.32
11.80
43.05
82.09
329.70
57.76
0.01
435.84 28.11
188.66
1477.17
197.00
232.55
67.00
97.69
615.12
177.00
519.56
(36.28)
50.00
114.05
2326.43
42.28
64.82
1480.19
The consolidated Reserves of the group after reckoning

parents share of accumulated profit / loss of Subsidiary,
Associate and 3 Joint Ventures amount to ` 8171.63 crore
of which ` 8147.84 crore relate to parent and the balance
` 23.79 crore relates to Subsidiary, Associate and 3 Joint
Ventures (Previous year ` 7894.56 crore of which ` 7881.60
crore relate to the parent and the balance ` 12.96 crore
relates to Subsidiary, Associate and 3 Joint Ventures)
O. Additional statutory information disclosed in individual
financial statements of the parent and subsidiary having
no bearing on the true and fair view of the Consolidated
Financial Statements and also the information pertaining to
the items which are not material have not been disclosed
in the Consolidated Financial Statements in the view of the
general clarification issued by the Institute of Chartered
Accountants of India (ICAI)
P. Please refer to Notes on Accounts of Andhra Bank
Financial Services Limited. (ABFSL)
Q. Previous years figures have been regrouped/reclassified/rearranged wherever necessary to confirm to
current years figures. Figures in the brackets indicate
figures of previous year.
Signatures to Schedules 1 to 18
82.09
In accordance with RBI circular no. DBOD.No.BP.

BC.77/21.04.018/2013-14 dated 20th December, 2013, the
Bank has created Deferred Tax liability of ` 263.42 crore on
Special Reserve as at 31st March 2013 under Section 36
(1)(viii) of the Income tax Act, 1961, by debiting Revenue
Reserves.
Provision for Deferred Tax liability (DTL) on deduction
claimed under Section 36(1)(viii) of the Income tax Act,
1961 has also been made amounting to ` 66.28 crore during
the financial year 2013-14.
C.VR.RAJENDRAN
2013-14 2012-13
S.K.KALRA
Executive Director
General Manager
PANKAJ CHATURVEDI
Director
Y. AMARNATH

FRN:004453S

FRN:004137S
FOR PATRO & CO

FRN:310100E
(CA A.SIVA PRASAD)

(CA R.PRAKASH)

Place : Hyderabad
Date : 31.05.2014
FOR C R SAGDEO & CO

FRN:108959W

FRN:312063E
(CA ANOOP C SAGDEO)


301
31 \, 2014
(` in 000)
31.03.2014

/
\

]
] - ]

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

\ ()

\ () /
()

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

31.03.2013
7106,38,71
9920,91,94
8721,74,29
7106,38,71
2814,53,23
(1615,35,58)
745,64,70
95,19,49
279,21,59
60,42
1119,45,36
1763,88,33
89,75,87
279,23,45
47,88
2132,39,77
18083,87,69
2067,21,45
(8394,97,53)
(9291,60,44)
(800,41,31)
1378,96,78
4162,52,00
(643,37,11)
3519,14,89
17963,33,14
2880,50,14
(8298,99,21)
(15150,32,36)
(11,26,30)
564,56,02
802,120
(963,48,34)
(883,27,14)
(222,18,00)
(222,18,00)
(95,15,29)
(95,15,29)
200,00,00
(279,21,59)
(403,22,07)
(482,43,66)
2814,53,23
(279,23,45)
(357,69,70)
(636,93,15)
(1615,35,58)
... \
.

004453S
:004137S
:310100E
( . )
( . )
( . )
(..213675)
(.. 205869)
(.. 208606)

:108959W
:312063E
( )
( )
:
(.
.
104659)
(..050395)
: 31.05.2014
302
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2014
Particulars
For the year ended

31.03.2014
(` in 000s)
For the year ended
31.03.2013
Opening balance of Cash and Cash equivalents
7106,38,71
8721,74,29
Closing balance of Cash and Cash equivalents
9920,91,94
7106,38,71
Net Increase(+) / Decrease (-) of Cash and Cash equivalents

during the period
2814,53,23
(1615,35,58)
745,64,70
1763,88,33
95,19,49
89,75,87
279,21,59
279,23,45
60,42
47,88
1119,45,36
2132,39,77
18083,87,69
17963,33,14
2067,21,45
2880,50,14
Cash Flow from Operating Activities

Net Profit before tax
Add: Depreciation on Assets
Add: Interest on Subordinated Debt & Others
Less: Profit on Sale of Assets
Operating Profit before changes in Operating Assets and Liabilities
Adjustment for Changes in Operating Assets and Liabilities
Increase / (Decrease) in Deposits
Increase / (Decrease) in Borrowings
(Increase) / Decrease in Investments
(8394,97,53)
(8298,99,21)
(Increase) / Decrease in Advances
(9291,60,44)
(15150,32,36)
(Increase) / Decrease in Other Assets
(800,41,31)
(11,26,30)
Increase / (Decrease) in Other Liabilities and Provisions
1378,96,78
564,56,02
Cash Generated from Operations
4162,52,00
802,120
Taxes Paid
(643,37,11)
(963,48,34)
Cash Flow from Operating Activities (A)
3519,14,89
(883,27,14)
(Purchase) / Sale of Fixed assets
(222,18,00)
(95,15,29)
Cash Flow from Investing Activities (B)
(222,18,00)
(95,15,29)
Cash Flow from Investing Activities
Cash Flow from Financing Activities

Equity Capital including Premium
200,00,00
Interest on Subordinated Debt & Others
(279,21,59)
(279,23,45)
Dividend paid (including tax on dividend)
(403,22,07)
(357,69,70)
Cash Flow from Financing Activities (C)
(482,43,66)
(636,93,15)
Net Increase (+) / Decrease (-) in Cash flow during the period (A)+(B)+(C)
2814,53,23
(1615,35,58)
C.VR.RAJENDRAN
S.K.KALRA
Executive Director
General Manager
Y. AMARNATH

FRN:004453S

FRN:004137S
FOR PATRO & CO

FRN:310100E
(CA A.SIVA PRASAD)

(CA R.PRAKASH)

Place: Hyderabad
Date: 31-05-2014
FOR C R SAGDEO & CO

FRN:108959W

FRN:312063E
(CA ANOOP C SAGDEO)


303
-
,

1. , ]
31 \ 2014

]\ ] i) 5 (\) , ,

ii) ii) 1() ,
1() 3 ()
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-
\
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2. , 1949
] ,

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3.
]

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4.
]\
\

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\

304
5. ] ,
\

6. 4
, ] 31 \
2014 .167341
.15630 ] .3035

7. ,
- , ] 31
\ 2014 .2059
.803 ]
\ -
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-

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,
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10. ,
1949 \
11. 1 5
( ) , 1980

\
INDEPENDENT AUDITORS REPORT ON THE

CONSOLIDATED FINANCIAL STATEMENTS
To
5. We believe that the audit evidence we have obtained is

opinion.
6. We have jointly audited the financial statements of the
Bank along with 4 other joint auditors, whose financial
statements reflect total assets of ` 1,67,341 Crores as on
31st March 2014, and total revenue of ` 15,630 Crores
and net cash inflows amounting to ` 3,035 Crores for the
year then ended.
7. We did not audit the financial statements of its Subsidiary,
Associate and Joint Ventures whose financial Statements
reflects total assets of ` 2,059 Crores as on 31st March,
2014, and total revenue of ` 803 Crores for the year then
ended. These financial statements have been furnished
to us, and our opinion, insofar as it relates to the amounts
included in respect of other entities, is based solely on the
report of the other auditors.
8. We report that the consolidated financial statements
have been prepared by the Banks management
in accordance with the requirements of Accounting
Standards 21 - Consolidated financial statements,
Accounting Standard 23 - Accounting for investments
in Associates in consolidated Financial Statements and
Accounting Standard 27 - Financial Reporting of Interests
in Joint Ventures prescribed by the Institute of Chartered
Accountants of India and the requirements of Reserve
Bank of India.
Opinion
9. In our opinion, as shown by books of the Bank, and to the
best of our information and according to the explanations
given to us:
(i) The Consolidated Balance Sheet, read with the notes
thereon is a full and fair Balance Sheet containing all
the necessary particulars, is properly drawn up so as
to exhibit a true and fair view of state of affairs of the
Bank and its subsidiary, associate and Joint ventures
as at 31st March, 2014 in conformity with accounting
principles generally accepted in India;
(ii) the Consolidated Profit and Loss Account, read with
the notes thereon shows a true balance of Profit,
in conformity with accounting principles generally
accepted in India, for the year covered by the account;
and
(iii) the Consolidated Cash Flow Statement gives a true
and fair view of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
10. The Consolidated Balance Sheet and the Consolidated
Profit and Loss Account have been drawn up in Forms
A and B respectively of the Third Schedule to the
Banking Regulation Act, 1949.
11.
Subject to the limitations of the audit indicated in
paragraph 1 to 5 above and as required by the Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1980, and subject also to the limitations of
disclosure required therein, we report that:
The Board of Directors,

Andhra Bank.
Report on the Financial Statements
1. We have examined the attached consolidated Balance
Sheet of Andhra Bank (the Bank), its subsidiary, associate
and joint ventures (the Group) as on 31st March, 2014,
and the consolidated Profit and Loss Account and the
consolidated Cash Flow Statement for the year then ended
in which are incorporated the:
i) Audited accounts of the Bank audited by 5 (five) Joint
Auditors including us.
ii) Audited accounts of 1 (one) Subsidiary, 1 (one)
Associate and 3 (three) Joint Ventures audited by other
auditors.
These financial statements are the responsibility of the
Andhra Banks Management and have been prepared by the
management on the basis of separate financial statements
and other financial information of the different entities in the
Group. Our Responsibility is to express an opinion on these
financial statements based on our audit.
Managements Responsibility for the Financial Statements
2. Management is responsible for the preparation of these
financial statements in accordance with the Banking
Regulation Act, 1949. This responsibility includes the
design, implementation and maintenance of internal
controls relevant to the preparation of the financial
statements that are free from material misstatement,
whether due to fraud or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on these
financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India.
Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
on the auditors judgment, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal controls
relevant to the Banks preparation and fair presentation
of the financial statements in order to design audit
procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of
the accounting estimates made by management, as well
as evaluating the overall presentation of the financial
statements.
305
() \ ]
]
]
()
()
12.
]
/ ,
\
,

-004453

-004137

--310100
( . )
^ (..213675)
( .)
^ (..205869)
( . )
^ (..208606)

-108959

- 312063
( )
^ (..104659)
( )
^ (..050395)
:
: 31.05.2014
306
(a)
We have obtained all the information and explanations

which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found
them to be satisfactory.
(b)
The transactions of the Bank, which have come to our

notice have been within the powers of the Bank.

FRN-004453S
(c)
The returns received from the offices and branches of

the Bank have been found adequate for the purposes
of our audit.
12.
In our opinion, the Consolidated Balance Sheet, Profit

and Loss Account and Cash Flow Statement comply
with the applicable accounting standards.

FRN-004137S
For PATRO & CO

FRN-310100E
(CA A.SIVA PRASAD)

(CA R.PRAKASH)

For C.R.SAGDEO & CO

FRN-108959W

FRN- 312063E
(CA ANOOP C SAGDEO)


Place: Hyderabad
Date: 31.05.2014
307
308
( )
. , 5-9-11, , -500 004.

( ] )
\ , 18 ], 2014
] ____________________
_____________
_____________
/ __________________________________________ ______________________________________ ]
_______________________________] ______________________________
/ ______________________________ _____________________________ ] __________________
] , 18 ], 2014 02.30 ] , 8-3-987/2, , 500 073 \ / / ( )
/ / .
. 1/ ]

/
..........................................
( )
...........................................
......................................................... .......................................................
]
i) ] ,
)
) ] ] .
) .
ii) , ] ,
, , ] ] ]
]
iii)
) ( ) ] ,
) ] , , , , , . , 5-9-11,
, 500 004 \ , 12 ] 2014
2.00 ] ] ].
iv) ] .
v) ] .
vi) ] ].
vii) ] .
viii)] \ ].
ix) - , -
]
309
( )
Head Office: Dr. Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad 500 004.
FORM - B
PROXY FORM
(To be filled in and signed by the shareholder)
FOURTEENTH ANNUAL GENERAL MEETING, 18th JULY, 2014

Regd. Folio No._____________________
D.P.ID No.____________________
Client ID No. __________________
I/We _________________________________________ resident of _________________________ in the district of

__________________________________ in the State of _____________________being a shareholder/s of
Andhra Bank hereby appoint, Shri/Smt. ________________________________________ resident of
_____________________________ in the district of ________________________________ in the State of
____________________ or failing him / her, Shri / Smt.____________________________________ resident of
________________________ in the district of _______________ in the State of _______________as my/our proxy
to vote on a poll for me/us and on my/our behalf in the Fourteenth Annual General Meeting of the Shareholders
of Andhra Bank to be held on Friday, the18th July, 2014 at 02.30 pm at Sri Sathya Sai Nigamagamam 8-3-987/2,
Sri Nagar Colony, Hyderabad - 500 073, and at any adjournment thereof.
Please affix
Re.1/Revenue
Stamp
Signature of first named/sole Shareholder
Name _____________________________
(in Block letters)
Signature of Proxy________________________Address_______________________________________________
INSTRUCTIONS FOR SIGNING AND LODGING THE PROXY FORM
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
No instrument of proxy shall be valid unless,

a)
in the case of an individual shareholder, it is signed by him/her attorney, duly authorised in writing;
b)
in the case of joint holders, it is signed by the shareholder first named in the register of members OR his/her attorney, duly
authorised in writing;
c)
in the case of a body corporate signed by its officer or an attorney duly authorised in writing;
An instrument of proxy shall be sufficiently signed by any shareholder, who is, for any reason, unable to write his / her name, if his/
her mark is affixed thereto and attested by a Judge, Magistrate, Registrar or Sub-Registrar of Assurances or other Government
Gazetted Officer or an Officer of Andhra Bank.
The Proxy together with
a) the power of attorney or other authority (if any) under which it is signed, or
b) a copy of the power of attorney or authority, certified by a Notary Public or a Magistrate, should be deposited at Andhra Bank,
Investor Services Section, Head Office, Dr.Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad 500004, not later than FOUR
DAYS before the date of Annual General Meeting i.e. on or before the closing hours i.e., 2.00 P.M. Saturday, 12th July, 2014.
No instrument of proxy shall be valid unless it is duly stamped.
An instrument of Proxy deposited with the Bank shall be irrevocable and final.
In case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.
The shareholder, who has executed an instrument of proxy, shall not be entitled to vote in person at the Annual General Meeting
to which such instrument relates.
No person shall be appointed as duly authorised representative or a proxy who is an officer or an employee of Andhra Bank.
If a member voted electronically through e-voting and also participates in voting through poll at the AGM, then the votes casted
through e-voting shall only be considered and votes casted through poll would be rejected.
310
( )
: , 5-9-11, , 500004
Head Office: Dr. Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad 500 004
\ ATTENDANCE SLIP
( ] to be surrendered at the time of Entry)
: 18 ], 2014
Date
: 18th July, 2014
: 02.30 ]
Time
: 02.30 P.M.
: , 8-3-987/2, , -500 073
Place
Sri Sathya Sai Nigamagamam, 8-3-987/2, Sri Nagar Colony Hyderabad - 500073

Signature of the Shareholder
/
Proxy / Representative present
Regd. Folio
DP ID & Client ID
( ) if not dematerialised)
( if dematerialised)
Name of the Shareholder

Number of Shares
__________________________________________________
_ _
( )
ENTRY PASS
( ] to be retained throughout the meeting)
]
Regd. Folio
( if not dematerialised)
DP ID & Client ID
( if dematerialised)
Name of the Shareholder

Number of Shares
/ ] \, ]
, /]\, ] ^ ],
- // ] ]
]
Shareholders / proxy or authorised representative of shareholders are requested to produce the above attendance slip,
duly signed in accordance with their specimen signatures registered with the Bank, alongwith the entry pass for admission
to the venue. The admission will, however, be subject to verification/checks, as may be deemed necessary. Under no
circumstances, any duplicate attendance slip will be issued at the entrance to the meeting.
/ ]
No gifts/gift coupons will be distributed at the meeting.
311
NOTES
312

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ANNUAL REPORT 2013-14

/ CONTENTS OF ANNUAL REPORT

/ From the Chairman & Managing Director ..........................................................................................3

\ / Notice of Annual General Meeting .................................................................................................7

/ Corporate Governance Report .............................................................................................................111

/ Balance Sheet .................................................................................................................................................174

/ Profit and Loss Account ...........................................................................................................................175

/ Significant Accounting Policies ...........................................................................................................185

/ Notes on Accounts ................................................................................................................................193

/ Cash Flow Statement ...........................................................................................................................225

/ Auditors Report ..............................................................................................................................227

{ / Our Progress at a glance ...............................................................................................................229

- / Key Performance Ratios ............................................................................................................231

/ Proxy Form ...................................................................................................................................................310

\/ / Attendance Slip / Entry Pass ...........................................................................................................311

Registar & Share Transfer Agents

UMAMAHESWARA RAO & CO

SUBRAMANIAN AND COMPANY

M/s. MCS Limited (Unit: Andhra Bank)

Kashiram Jamnadas Building

Office No. 21/22 Ground Floor

5, P.DMello Road, (Ghadiyal Godi)

NAG & ASSOCIATES

Mumbai 400 009.

PDF processed with CutePDF evaluation edition www.CutePDF.com

ANNUAL REPORT 2013-14

Chairman & Managing Directors Letter to Shareholders

stable investment climate with renewed confidence in the

It gives me immense pleasure

The financial year 2014-15 has unfolded itself as an

Global economy had an inopportune encounter with the

CASA Deposits increased to ` 35,186 Crore from

However, it is expected that the global economy should be

Net Profit for 2013-14 stood at ` 436 Crore.

During the third quarter of 2013-14, Indias Gross Domestic

Net Profit per Employee stood at ` 2.33 Lakh.

The role of Agriculture as a sector for fuelling growth

During FY 2013-14, your Bank has taken the following I.T.

In the backdrop of optimism for recovery in growth this year

ANNUAL REPORT 2013-14

Issue of Debit Platinum CHIP Card with International

The following new products are made available at POS

Extension of Cheque Truncation System to the Branches

o RD product (RDGFI) is launched for FI customers

Online opening of Savings Bank Accounts facility is

Your Bank received the following awards during 2013-14:

643 new ATMs were installed during this period, which

ABIRD, Rajahmundry was awarded as best performing

Pass book printing kiosks were installed at Navashakti

Your bank has received second best bank award for

Provision made available for Card Block request through

NIRED, Rajam was honoured as 3rd Best RSETI in the

Generation of Form 15G/H through Finacle system, is

ABIRD, Eluru & Machilipatnam have received consolation

Aadhaar registration enabled through different alternative

Your Bank is committed towards delivering best services

New features provided in Internet Banking:

With warm wishes,

o Two factor authorization to strengthen security

The following new facilities are enabled in ATMs:

o PIN change for Credit cards.

o Mobile Baking app for Windows 8 phones, black berry Z10,

ANNUAL REPORT 2013-14