final report alm

PREFACE

In B.K.SCHOOL OF BUSINESS MANAGEMENT every core specialization students

have to make a special study report. This report contains all details learned by the student. No

professional studies are considered complete without practical work experience. Every individual

who is doing management studies has to undergo this practical study.

We were chosen The ASSETS AND LIABILITY MANAGEMENT as a topic for

special study for the two banks HDFC and BANK OF BARODA.

As a whole, we have experienced that practical work is entirely different from the

classroom learning. The working environment is far more different. The project report has really

enhanced our knowledge about ASSETS AND LIABILITY MANAGEMENT IN BANKS. we

gain lots of knowledge from this project report. we hope this will also help us in future.

ACKNOWLEDGEMENT

We are confident at the time of submission of this report; here I tried to show my hard

work, enthusiasm and interest while presetting it. I fall short of worlds to pen down anything for

the co-operation and encouragement extended by friends through the completion of this project.

Many thanks are little for their encouragement and support.

First of all my special thanks to Gujarat University, Ahmedabad and B.K.SCHOOL OF

BUSINESS MANAGEMENT who give me an opportunity to get practical knowledge.

we would like to thank an organization for the infrastructure, administrative and

qualitative support extended for the timely completion of this study. We are sincerely thankful to

Professor Dharmesh Shah (project guide) who gave us instruction regarding project. and we

are also thankful to Dr. Sarla Achuthan who gave us an opportunity to make special study

report.

Thank you....

Vipul prajapati(1975)

Digesh varsat (1987)

MBA

Semester-II

EXECUTIVE SUMMARY

The goal of asset/liability management (ALM) is to properly manage the risk related to changes in interest rates, the mix of balance sheet assets and liabilities, the holding of foreign currencies, and the use of derivatives. These risks should be managed in a manner that contributes adequately to earnings and limits risk to the financial margin and member equity.

Proper management of asset/liability risk is facilitated through board approved policy, which sets limits on asset and liability mix, as well as the level of interest rate risk and foreign currency risk to which the credit union is willing to expose itself. Policy should also set out guidelines for the pricing, term and maturity of loans and deposits. The use of derivatives, if any, should also be controlled by policy, which should state among other things that derivatives must only be used to limit interest rate risk and must never be used for speculative or investment purposes.

Credit unions which offer either fixed rate loans or deposits will mitigate interest rate risk by ensuring that management is properly measuring risk. The standard measure of this risk is balance sheet gap, and it is essential that management measure this regularly. Techniques for measuring, monitoring and reducing interest rate risk are covered in depth in this chapter.

A credit union can meet standards of sound business and financial practices by ensuring it has developed and implemented asset/liability board policies, risk and performance measurement techniques, and risk management procedures comparable to those contained in this chapter. Policies, measurement techniques and procedures should be appropriate for the size and complexity of the credit union's operation.

RESEARCH METHODOLOGY

INTRODUCTION :

Asset-liability management basically refers to the process by which an institution manages its balance sheet in order to allow for alternative interest rate and liquidity scenarios. Banks and other financial institutions provide services which expose them to various kinds of risks like credit risk, interest risk, and liquidity risk. Asset liability management is an approach that provides institutions with protection that makes such risk acceptable. Asset-liability management models enable institutions to measure and monitor risk, and provide suitable strategies for their management.

TITLE OF THE STUDY:

“Asset & Liability Management in Banks” of HDFC and BANK OF BARODA.

STUDY OBJECTIVES:

Review the interest rate structure and compare the same to the interest/product pricing of both assets and liabilities.

Examine the credit risk and contingency risk to assess the quality of assets.

Ascertain the ability of the ALM process to adapt to significant changes in the market.

Aim is to stabilize the short-term profits, long-term earnings and long-term substance of the bank.

RATIONALE:

The study would make an attempt to identify the GAP between assets and liability of the bank and assess the quality of assets and liability by examine the credit and contingency risk.

SCOPE:

The scope of the study is for having following areas to be covered.

Asses the assets and liability to examine the risk criteria.

Understanding the gap analysis between assets and liability.

To check the liquidity through Assets & Liabilities reported as per their maturity

profile into 8 maturity Buckets.

Assets and liability analysis of HDFC and BANK OF BARODA.

METHODS ADOPTED:

RATE SENSITIVE GAP

Rate sensitivity measures the responsiveness of the asset and liability portfolio to changes in interest rates. Rate sensitive assets and liabilities thus are instruments whose values are impacted by changes in market interest rates. These may include both on balance sheet as well as off balance sheet items. Rate sensitive gap is the difference between the book values of rate sensitive assets and liabilities and is calculated for various maturity buckets as well as cumulatively across buckets.

Fixed rate instruments may be adversely affected by changes in interest rates throughout their tenor, whereas floating rate instruments may be adversely affected by changes in market interest rates between re-pricing dates. Therefore in the calculation of rate sensitive gap, fixed rate instruments are slotted into the various maturity buckets based on the days remaining to maturity (note that each coupon and maturity payment of the fixed income instrument is stripped and slotted separately in to the relevant bucket) whereas floating rate instruments should ideally be slotted into the relevant maturity buckets based on the days remaining to the next reset/ re-pricing date. However, if re-pricing data is not readily available then days to maturity may also be used in determining what bucket should be used for floating rate instruments. In general rate sensitive liabilities, assets and off-balance sheet positions should be group into time buckets according to residual maturity or next re-pricing period, whichever is earlier.

Mismatches (negative gaps) during 1-14 and 15-28 days time bands in normal course should not exceed 20 % of the cash flows in each time band.

Step 1: Define the time buckets

The time buckets used for the rate sensitive gap analysis need to be determined such as buckets of up to 1 month, 1 to 3 months, 3 to 6 months, up to 1 year, 1 to 2 years, 2 to 3 years, 3 to 5 years, 5 to 10 years, above 10 years and non-rate sensitive bucket.

Step 2: Classification of on- and off- balance sheet items

Classify all on- and off- balance sheet items as rate sensitive and non-rate sensitive items.

Step 3: Slot items into relevant time buckets

Slot items into the relevant time bucket residual time to maturity or time to next re-pricing date. Sum the book values across all assets and all liabilities in each bucket to get the total assets and liabilities across each bucket.

Step 4: Calculate rate sensitive gap

Calculate GAP across each bucket. The Gap is the difference between rate sensitive assets and rate sensitive liabilities.

GAP = Total Rate Sensitive Assets – Total Rate Sensitive Liabilities

Step 5: Calculate off-balance sheet gap

Off-Balance sheet GAP is calculated across each bucket for only interest bearing instruments.

Step 6: Calculated interval gap

The Interval Gap is computed as:

Interval GAP = On-Balance sheet GAP + Off-Balance sheet GAP

Step 7: Calculate cumulative gap

Cumulative gap is computed as the sum of the interval gaps across buckets.

INTRODUCTION TO ALM IN BANKING INDUSTRYIn banking, asset and liability management is the practice of managing risks that arise

due to mismatches between the assets and liabilities (debts and assets) of the bank. This can also be seen in insurance.

Banks face several risks such as the liquidity risk, interest rate risk, credit risk and operational risk. Asset Liability management (ALM) is a strategic management tool to manage interest rate risk and liquidity risk faced by banks. Asset Liability management is a very broad field targeting risk management, which includes assessment of various types of risk the current assets and the forthcoming liabilities are exposed to. This is of major importance to the banking and financial services.

• Banks are now operating in a fairly deregulated environment and are required to determine on their own, interest rates on deposits and advances.

• Intense competition for business involving both the assets and liabilities together with increasing volatility in the interest rates has brought pressure on the management of banks to maintain a good balance among spreads.

• The ALM guidelines issued by RBI has been formulated to serve as a benchmark for banks which lack a formal ALM system.

• Capture the maturity structure of the cash flows (inflows and outflows) in the Statement of Structural Liquidity.

• Tolerance levels for various maturities may be fixed by the bank keeping in view bank’s ALM profile, extent of stable deposit base, nature of cash flows etc.

• ALM is about managing market risk and liquidity risk together.

• Capital market exposure of banks is small.

• Exchange risk is highly specialized.

• Hence ALM is an integrated risk management approach for managing liquidity risk, interest rate risk.

• Banks are exposed to credit and market risks in view of the asset-liability transformation

• With liberalization, banks’ operations have become complex and large, requiring strategic management.

DETAIL DISCUSSION OF SCOPE OF THE STUDY

CREDIT RISK :

This is the risk of non recovery of loan or the risk of reduction in the value of asset. The credit

risk also includes the pre-payment risk resulting in loss of opportunity to the bank to earn

higher interest interest income. Credit Risk also arises due excess exposure to a single borrower,

industry or a geographical area. The element of country risk is also present which is the risk

of losses being incurred due to adverse foreign exchange reserve situation or adverse political or

economic situations in another country

LIQUIDITY RISK:

Liquidity is the ability to meet commitments as and when they are due and ability to undertake

new transactions when they are profitable. Liquidity risk may emanate in any of the following

situations-

(a) net outflow of funds arising out of withdrawals/non renewal of deposits

(b) non recovery of cash receipts from recovery of loans

(c) conversion of contingent liabilities into fund based commitment and

(d) increased availment of sanctioned limits

INTEREST RISK :

The phased deregulation of interest rates and the operational flexibility given to banks in pricing most of the assets and liabilities imply the need for the banking system to hedge the Interest-Rate Risk. Interest Rate Risk is the risk where changes in market interest rates might adversely affect the Bank’s Net Interest Income. The gap report should be generated by grouping interest rate sensitive liabilities, assets and off balance sheet positions into time buckets according to residual maturity or next repricing period, whichever is earlier. Interest rates on term deposits are fixed during their currency while the advance interest rates are floating rates. The gaps on the assets and liabilities are to be identified on different time buckets from 1–28 days, 29 days upto 3 months and so on. The interest changes should be studied vis-a-vis the impact on profitability on different time buckets to assess the interest rate risk.

GAP ANALYSIS :

The various items of rate sensitive assets and liabilities and off-balance sheet items are classified into time buckets such as 1-28 days, 29 days and upto 3 months etc. and items non-sensitive to interest based on the probable date for change in interest.

The gap is the difference between Rate Sensitive Assets (RSA) and Rate Sensitive Liabilities (RSL) in various time buckets. The positive gap indicates that it has more RSAS than RSLS whereas the negative gap indicates that it has more RSLS. The gap reports indicate whether the institution is in a position to benefit from rising interest rates by having a Positive Gap (RSA > RSL) or whether it is a position to benefit from declining interest rate by a negative Gap (RSL > RSA).

• Maturity profile of SSL into 8 bucketsi. 1-14 days

ii. 15-28 daysiii. 29 and up to 3 monthsiv. Over 3months and up to 6 monthsv. Over 6 months and up to 1 year

vi. Over 1 year and up to 3 yearsvii. Over 3 years and up to 5 years

viii. Over 5 years

• Mismatches (negative gaps) during 1-14 and 15-28 days time bands in normal course

should not exceed 20 % of the cash flows in each time band

• Gap is the difference between Rate Sensitive Assets (RSA) and Rate Sensitive Liabilities

(RSL)

• If RSA > RSL = +ve Gap – Bank benefits if interest rate goes up

• If RSA < RSL or RSL > RSA = -ve Gap – Bank benefits if interest rate goes down

• Break the beyond 5 year bucket into financial and non-financial

• The sum of all the gaps in the structural liquidity may or may not be zero

• The cumulative gaps – also called forward payment structure which indicates future

liquidity position

• Long term strategic approach needed to correct an increasingly negative Forward

payment structure.

DATA ANALYSIS

STRUCTURAL LIQUIDITY OF HDFC AS AT MARCH 2006

AS AT MARCH 31 2006

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS

OVER 3 MONTHS TO 6 MONTHS

OVER 6 MONTHS TO 12 MOTHS

OVER 1 YEAR TO 3 YEARS

OVER 3 YEARS TO 5 YEARS

OVER 5 YEARS

Rs. In crores

Loans & advances 336072 31532 244684 310458 463442 1594878 261171 263889Investments 356217 78515 262709 177399 256855 1291201 249937 166563Deposits 245096 285683 413903 377842 586768 3268893 373619 27878Borrowings 136021 15925 125189 5259 3454 FCY asset 233977 11493 35138 45220 9959 25004 4539 4411FCY LIABILITIES 26321 20271 132163 12882 43643 76231 8236 CASH INFLOW 815145 328708 693725 733520 1060169 4888775 639329 296178CASH OUTFLOW 518559 114711 190281 300498 1372691 261627 261627 166563GAP 296586 213997 503444 433022 -312522 4627148 377702 129615GAP % 36% 65% 73% 59% -29% 95% 59% 44% CUMMULATIVE GAP 700434 914431 1417875 1850897 1538375 6165523 6543225 6672840CUMMULATIVE GAP % 36% 101% 174% 233% 204% 298% 357% 401%


AS AT MARCH 31 2007

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores

Loans & advances 448181 -161333 323120 449154 756355 2242723 312739 323539Investments 316080 92177 231001 170530 274186 1616909 166093 189504Deposits 841719 144050 437940 365622 417362 4045121 381143 196837Borrowings 1061630 614 171512 3787 500 469 3027 FCY asset 268327 9468 43025 37281 2217 15906 27175 15420FCY LIABILITIES 50642 4612 185655 20998 51412 68188 10597 43470 CASH INFLOW 1558227 -7815 804085 852057 1175934 6303750 721057 535796CASH OUTFLOW 1428352 97403 195315 326098 1685566 179717 179717 232974GAP 129875 -105218 608770 525959 -509632 6124033 541340 302822GAP % 8% -1146% 76% 65% -17% 96% 75% 57% CUMMULATIVE GAP 129875 24657 633427 1159386 649754 6773787 7315127

7617949

CUMMULATIVE GAP % 8% -1138% -1062% -997% -1014% -918% -843% -786%


AS AT MARCH 31 2008

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores

Loans & advances 602849 -55555 367208 509476 1144786 3146980 394113 232833Investments 1560788 121383 304748 338196 429261 1649783 207769 327426Deposits 915858 333389 667295 848220 779626 5662485 576824 293163Borrowings 170997 10569 162674 79543 22105 1998 FCY asset 272971 19962 43921 37145 13553 5196 14773 124FCY LIABILITIES 135178 14448 175918 98563 63054 47601 3670 40120 CASH INFLOW 1791678 297796 1078424 1394841 1937965 8814661 985710 526120CASH OUTFLOW 1866963 146400 516302 514420 1699382 211439 211439 367546GAP -75285 151396 562122 880421 238583 8603222 774271 158574GAP % -4% 149% 52% 77% 13% 98% 79% 30% CUMMULATIVE GAP -75285 76111 638233 1518654 1757237

10360459

11134730

11293304

CUMMULATIVE GAP % -4% 145% 197% 274% 287% 385% 463% 493%


AS AT MARCH 31 2009

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores

Loans & advances 634290 244584 1120087 1057567 1397689 4055736 609137 769215

Investments 352724

4 112544 254001 235552 414737 2161857 451968 544751

Deposits103090

8 228854 697016 747167 1128243 8155394 1486906 806670

Borrowings 81791 9485 85204 91005 7693 39500 601686

FCY asset 222607 24034 88623 70955 39025 57584 11868 849

FCY LIABILITIES 54725 13165 84614 86329 50767 144458 5799 50720

CASH INFLOW188780

5 497472 1905726 1875689 25649571226871

4 2107911 1576734

CASH OUTFLOW366376

0 135194 412886 465504 2314008 497267 497267 1197157

GAP

-177595

5 362278 1492840 1410185 2509491177144

7 1610644 379577

GAP % -94% 73% 73% 73% 34% 98% 76% 24%

CUMMULATIVE GAP

-177595

5

-141367

7 79163 1489348 17402971351174

41512238

81550196

5CUMMULATIVE GAP % -94% -21% 52% 124% 158% 256% 333% 357%

STRUCTURAL LIQUIDITY OF BOB AS AT MARCH 2006

AS AT MARCH 31 2006

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores

Loans & advances 10484.4

2 3810.7 20251 12624.36 20926.44 53020.36 2908.16 890.58

Investments 10072.3

7 2903.17 8614.37 7903.13 6344.8 26715.98 10457.52 10609.53

Deposits 1078.7 430.61 1535.24 1904.31 794.36 5165.77 5918.19 18116.45

Borrowings 421.87 0.01 130.59 157.19 64.15 228.91 130.22 9.62

FCY asset 9272.14 2340.77 6295.19 5675.8 3067.56 2408.55 4148.64 1368.18

FCY LIABILITIES 6737.95 2739.68 10309 4194.6 6051.14 4178.93 1567.73 2386.87

CASH INFLOW20835.2

6 6582.08 28081.4 20204.47 24788.36 60594.68 12974.99 20375.21

CASH OUTFLOW17232.1

9 5642.86 12254.9 12460.09 31123.82 12155.47 12155.47 13006.02

GAP 3603.07 939.22 15826.5 7744.38 -6335.46 48439.21 819.52 7369.19

GAP % 17% 14% 56% 38% -26% 80% 6% 36%

CUMMULATIVE GAP 3603.07 4542.29 20368.8 28113.14 21777.68 70216.89 71036.41 78405.6CUMMULATIVE GAP % 17% 32% 88% 126% 101% 181% 187% 223%


AS AT MARCH 31 2007

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores


1 5596.44 20230.59 19036.14 31398.6228338.3

3 5026.1826964.9

1

Investments 12659.4

2 4138 13677.85 12084.54 11982.4919207.8

813707.2

519243.8

9

Deposits 611.03 957.95 1128.31 3634.63 1148.98 8730.56 5930.821699.6

9Borrowings 878.98 1398.47 119.19 110.36 62.4 906.15 67.52 4.94FCY asset 8787.71 5228.46 7822.1 5885.6 4013.88 3273.8 6242.36 3707.2

FCY LIABILITIES11351.0

6 4227.48 9440.52 6561.85 4797.25 2995.13 3444.66 3981.02

CASH INFLOW24841.6

5 11782.85 29181 28556.37 36561.4840342.6

917199.3

4 52371.8

CASH OUTFLOW24889.4

6 9763.95 18756.75 16842.14 23109.1617219.4

317219.4

323229.8

5

GAP -47.81 2018.9 10424.25 11714.23 13452.3223123.2

6 -20.0929141.9

5GAP % 0% 14% 36% 41% 37% 57% 0% 56% CUMMULATIVE GAP -47.81 1971.09 12395.34 24109.57 37561.89

60685.15

60665.06

89807.01

CUMMULATIVE GAP % 0% 17% 53% 94% 131% 188% 188% 244%


AS AT MARCH 31 2008

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores


9 5952.98 22165.57 28900.31 43289.1137265.3

8 6506.5 32527.51

Investments 7031.87 3403.21 22893.77 17330.94 17709.1737010.0

3 15980.25 22626.66Deposits 588.81 564.25 1802.39 2424.92 5263.79 8198.54 6523.73 26856.63Borrowings 241.56 205.98 699.32 2476.45 210.03 1792.17 8.46 2.12FCY asset 9022.9 3521.53 12488.53 7887.75 6860.76 6980.2 7867.23 3927.59


7 4275.34 10904.51 9220.03 7658.72 7137.39 6051.11 4151.2

CASH INFLOW 25401.310038.7

6 36456.49 39212.98 55413.6652444.1

2 20897.46 63311.73

CASH OUTFLOW 19404.6 7884.53 29027.42 25577.92 45939.5922039.8

2 22039.82 26779.98GAP 5996.7 2154.23 7429.07 13635.06 9474.07 30404.3 -1142.36 36531.75GAP % 24% 21% 20% 35% 17% 58% -5% 58% CUMMULATIVE GAP 5996.7 8150.93 15580 29215.06 38689.13

69093.43 67951.07

104482.82

CUMMULATIVE GAP % 24% 45% 66% 101% 118% 176% 170% 228%


AS AT MARCH 31 2009

1-14 DAYS

15-28 DAYS

29 DAYS TO 3 MONTHS





OVER 5 YEARS

Rs. In crores


5 8935.37 27384.95 26009.25 60527.8249668.9

9 7428.72 37035.31

Investments 16432.9

4 4236.88 18555.4 21852.56 24019.6842803.6

2 31101.69 16032.51

Deposits 1963.43 890.38 2766.73 2155.92 1313.42 5394.97 13949.21 32367.93

Borrowings 37.67 236.56 168.97 903.07 1077.7 2287 400.99 8238.12

FCY asset10985.3

2 5430.92 17026.15 12773.93 11117.2110057.7

5 6493.71 4259.99


3 6385.87 16548.57 11748.63 12790.93 8351.76 6660.77 5761.57

CASH INFLOW 37002.615256.6

7 47177.83 40939.1 72958.4565121.7

1 27871.64 73663.23

CASH OUTFLOW28619.9

410859.3

1 34504.26 37888.31 53442.3838163.4

5 38163.45 30032.2

GAP 8382.66 4397.36 12673.57 3050.79 19516.0726958.2

6-

10291.81 43631.03

GAP % 23% 29% 27% 7% 27% 41% -37% 59%

CUMMULATIVE GAP 8382.6612780.0

2 25453.59 28504.38 48020.4574978.7

1 64686.9 108317.93CUMMULATIVE GAP % 23% 51% 78% 86% 113% 154% 117% 176%

KEY FINDINGS

If awareness for ALM in the bank staff at all levels supportive management dedicated teams

is not present than ALM is not succeed, because the awareness is essential to make the work properly and effectively.

By the use of ALM the financial situation of the employee benefits institution becomes more transparent. They are properly aware about what they are doing and for what purpose they are work.

We have to make full computerization networking to make ALM successful, because the work which is done in ALM is based on computer working and the staff is not aware about properly use of computerization network than it would not successful.

Through ALM study we are able to make the decisions regarding the future investment strategy and methods of money landing.

Study enables to take decision regarding initial asset allocation.

CONCLUSION

It is important to note that the conglomerate approach to financial institutions, which is increasingly becoming popular in the developed markets, could also get replicated in Indian situations.

This implies that the distinction between nationalize banks and term lending institutions could become blurred.

It is also possible that the same banks involves itself in short-term and long-term lending-borrowing activities, as well as other activities like mutual funds, insurance and pension funds.

In such a situation, the strategy for asset-liability management becomes more challenging because one has to adopt a modular approach in terms of meeting asset liability management requirements of different divisions and product lines But it also provides opportunities for diversification across activities that could facilitate risk management on an enhanced footing.

From the study we found that HDFC bank is far better than the BANK OF BARODA in the assets and liability management, because HDFC has more positive gap than the BOB.

BIBILOGRAPHY

Asset_liability_management /wikipedia.org/wiki

Asset - Liability Management System in banks - Guidelines o rbidocs.rbi.org.in/rdocs

www.hdfcbank.com

www.bankofbaroda.com

http://www.hdfcbank.com/

http://rbidocs.rbi.org.in/rdocs/pressrelease/pdfs/3204.pdf

ANNEXUREBalance Sheet as on 31st March, 2010

(Rs.In 000's)

Schedules As on31.03.2010

As on31.03.2009

Capital & Liabilities Capital 1 365,52,77 365,52,77 Reserves & Surplus 2 14740,85,50 12514,19,53 Deposits 3 241044,26,42 192396,95,17 Borrowings 4 13350,08,50 12767,90,64Other Liabilities & Provisions 5 8815,97,09 8627,65,66 Total 278316,70,28 226672,23,77 Assets Cash and balances with Reserve Bank of India 6 13539,96,91 10596,34,35Balances with Banks and Money at Call and Short Notice 7 21927,08,85 13490,77,35 Investments 8 61182,37,54 52445,87,58 Advances 9 175035,28,59 143251,40,84 Fixed Assets 10 2284,76,48 2309,71,93Other Assets 11 4347,21,91 4578,11,72Total 278316,70,28 226672,23,77 Contingent Liabilities 12 87836,07,99 73386,09,83 Bills for Collection 18185,57,81 13963,99,04 Significant Accounting Policies 17 Notes on Accounts 18

The Schedules referred to above form an integral part of the Balance Sheet.

Balance Sheet as on 31st March, 2008Amount in Rupees

(000's Omitted)

Schedules As on 31.3.2008 As on 31.3.2007 Capital & Liabilities Capital 1 365,52,77 365,52,76 Reserves & Surplus 2 10678,39,91 8284,41,00 Deposits 3 152034,12,72 124915,97,93 Borrowings 4 3927,04,80 1142,56,16 Other Liabilities & Provisions 5 12594,41,42 8437,69,61 Total 179599,51,62 143146,17,46

Assets Cash and balances with Reserve Bank of India 6 9369,72,34 6413,52,02 Balances with Banks and Money at Call and Short Notice

7 12929,56,33 11866,84,51

Investments 8 43870,06,78 34943,62,75 Advances 9 106701,32,41 83620,86,98 Fixed Assets 10 2427,00,81 1088,80,75 Other Assets 11 4301,82,95 5212,50,45

Total 179599,51,62 143146,17,46

Contingent Liabilities 12 82362,32,83 61375,31,76 Bills for Collection 8315,01,73 6627,59,33

Significant Accounting Policies 17

Notes on Accounts 18


Balance Sheet as on 31st March, 2007Amount in Rupees

(000's Omitted)

Schedules As on 31.3.2007 As on 31.3.2006 Capital & Liabilities Capital 1 365,52,76 365,52,74 Reserves & Surplus 2 8284,41,00 7478,90,72 Deposits 3 124915,97,93 93661,99,16 Borrowings 4 1142,56,16 4802,20,07 Other Liabilities & Provisions 5 8437,69,61 7083,90,04 Total 143146,17,46 113392,52,73


7 11866,84,51 10121,20,60


Total 143146,17,46 113392,52,73





BALANCE SHEET AS ON 31st MARCH, 2006Amount in Rupees(000's Omitted) Schedules As on 31.3.2006 As on 31.3.2005 Capital & Liabilities Capital 1 365,52,74 294,52,74 Reserves & Surplus 2 7478,90,72 5333,22,71 Deposits 3 93661,99,16 81333,46,43 Borrowings 4 4802,20,07 1640,83,37 Other Liabilities & Provisions 5 7083,90,04 6062,18,45 Total 113392,52,73 94664,23,70


7 10121,20,60 6541,87,91


Total 113392,52,73 94664,23,70



