Andhra Bank Annual Report 2014 15

ANNUAL REPORT 2014-15
Board of Directors
Shri C VR Rajendran
Chairman and Managing Director
Shri S K Kalra
Executive Director
Shri Ajit Kumar Rath

Executive Director
Shri Anandrao Vishnu Patil

Govt. of India Nominee Director
Shri E E Karthak
RBI Nominee Director
Shri K Thamaraiselvan
Director
Dr. Naina Sharma

Director
Shri Amit Goel

Director
Shri A Krishnakumar
Director
2
(A Govt. of India Undertaking)
Shri G Sivakumar
Director
/ CONTENTS OF ANNUAL REPORT

/ From the Chairman & Managing Director ..........................................................................................2
\ / Notice of Annual General Meeting .................................................................................................6
/ \
Directors Report / Management Discussion and Analysis .....................................................................................................20
III II ( ] )
Disclosures Under Pillar-III of Basel-II (New Capital Adequacy Framework) ............................................................................64
/ Corporate Governance Report .............................................................................................................126

/ Balance Sheet .................................................................................................................................................200
/ Profit and Loss Account ...........................................................................................................................201
/ Significant Accounting Policies ...........................................................................................................212
/ Notes on Accounts ................................................................................................................................224
/ Cash Flow Statement ...........................................................................................................................262
/ Auditors Report ..............................................................................................................................264
{ / Our Progress at a glance ...............................................................................................................266
- / Key Performance Ratios ............................................................................................................268

Abridged Financial Statements in Foreign Currency ..........................................................................................................270
- ] -
Classification of Branches - Population Groupwise ..............................................................................................................272
- {
Financial Statements of Subsidiary - Andhra Bank Financial Services Limited .........................................................................273

Consolidated Financial Statements of Andhra Bank and its Subsidiary ...................................................................................329
/ Proxy Form ...................................................................................................................................................365

\/ / Attendance Slip / Entry Pass ...........................................................................................................367
] ]
AUDITORS
Registrar & Share Transfer Agents
NAG & ASSOCIATES
002,5,
400 009
PREM GUPTA & CO
M/s. MCS SHARE TRANSFER AGENT LIMITED

002, GROUND FLOOR, KASHIRAM JAMNADAS
BUILDING, 5, P.DMELLO ROAD,
MASJID EAST, MUMBAI - 400 009.
Ph. No. 022-40206020/22/23/24
Fax No. 022 -40206021
V. KRISHNAN & CO
BASHA & NARASIMHAN

2015-16
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-
Chairman & Managing Directors Letter to Shareholders

Dear Shareholders,
The financial year 2015-16 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.
It gives me immense pleasure

to share with you that your Bank
crossed yet another milestone
during financial year 2014-15 with
its total Business surpassing the
Rs.2.85 Lakh Crore mark. The
past year posed unique challenges
and to the industry with slow
recovery in the core sectors, which
metamorphosed into a modest growth in the economic
activity and consequently the expectations of stakeholders,
market and confidence levels of economy are moderated
from their high levels witnessed during the course of the
year.
The performance highlights of your Bank for the Financial

Year 2014-15 are as follows:
Total Business increased to `2,84,588 Crore as on
31.03.2015, from `2,52,494 Crore as on 31.03.2014
registering a growth rate of 12.7%.
Total Deposits increased to `1,55,012 Crore from
`1,41,845 Crore in the previous year, registering a
growth rate of 9.3%.
CASA Deposits increased to `42,402 Crore from
`35,186 Crore, registering a growth rate of 20.5%.
The global economic activity recovered during FY 2014-15,

albeit, marginally with divergent rates across economies.
While most of the Emerging market Economies (EMEs), are
experiencing slowdown, the Advanced Economies (AEs)
are battling the risks of deflation barring the US. This has
resulted in continuation of unconventional monetary policies
by the AEs and by EMEs to fight disinflationary/ inflationary
conditions respectively. As a consequence, there have been
large movements in exchange rates and other asset prices.
In sum, the AEs are yet to recover from the after affects of
global financial crisis, while the EMEs are confronted with
rising negative output gap, falling potential growths, which
restricted the revival of global growth in FY 2014-15.
Cost of Deposits stood at 7.73%.

Gross Bank Credit increased to `1,29,576 Crore from
`1,10,649 Crore, registering a growth rate of 17.1%.
Credit Deposit Ratio stood at 83.61% compared to
78.02% during the previous year.
Net Interest Margin stood at 3.00%.
Non-Interest Income stood at ` 1499 Crore.
Net Profit for 2014-15 stood at `638 Crore.
Gross NPAs to Gross Advances Ratio stood at
5.31%.
However, it is expected that the global economy will trace on

a higher growth trajectory in the coming fiscal in comparison
to that of the previous years, hoping to be comforted with
softer commodity prices and rising level of output in the US
and Euro area.
Net NPAs to Net Advances Ratio reduced from 3.11%

to 2.93%.
Capital Adequacy Ratio stood at 10.63% under
BASEL-III.
The growth in Gross Domestic Product (GDP) during 201415 is estimated at 7.4% (y-o-y) as compared to the growth
rate of 6.9% in 2013-14, suggesting a revival in the domestic
economic activity in 2014-15. However, the divergence
between other lead indicators of economic activity and
the GDP growth numbers, suggest that the recovery is not
broad based.
Return on Average Assets stood at 0.38%.

Net Profit per Employee stood at `3.45 Lakh.
Average Business per Employee stood at `13.73
Crore.
Network Expansion: During 2014-15, your Bank
opened 395 Branches and added 382 ATMs. As
on 31.03.2015, Bank had 4782 Delivery Channels
consisting of 2507 Branches, 8 Extension Counters,
35 Satellite Offices and 2232 ATMs.
The role of Agriculture as a sector for fuelling growth

momentum during FY 2015-16 seems to be the most crucial,
given the dry clouds of a below normal monsoon hovering
over the horizon this year.
In the backdrop of optimism for further recovery in growth this
year coupled with downside risks to industry and agriculture,
a stable investment climate with renewed confidence in the
fundamentals of the economy is quintessential for achieving
the much desired results.
During FY 2014-15, your Bank has taken the following I.T.

initiatives to improve Customer Service:
382 number of new ATMs were installed during this
period, which include 342 Onsite ATMs.
5
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bank has opened 18.25 lacs of accounts
under PMJDY scheme. The Bank has opened
6,94,257 number of accounts, which is the
highest among all the banks, using online
E-KYC service.
Implementation of Two Factor Authentication solution

for Internet banking to overcome delay in delivery of
OTP (one time password)
AB E-Collection Module for collection of Fees and
Other Charges customized for each user.
o
Customized Commercial Tax collection module for the

Telangana State government.
o Customized Portal for Rajiv Vidya Mission

funds transfer
Introduced the facility of Scheduling of NEFT payments

by the internet banking customers
o AB e-passbook to maintain passbook on

Android Devices.
Enabled card less cash deposits at BNA to facilitate

3rd party deposits
Enabled Donation modules for HUDHUD Cyclone

relief fund, Arasavalli temple Srikakulam Dist,
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.
Enabled foreign inward remittances through IMPS.

Provided the facility of e-filling of Income Tax returns
through our internet banking facility
With warm wishes,
Launched Cash Recyclers 1st of its kind in AP & TG.
Yours sincerely,
The Bank processed 1.42 Cr DBT record and credit

beneficiaries accounts as on 31.03.2015 which is
highest amongst all Banks.
(C.VR RAJENDRAN)
Chairman & Managing Director
Leveraging the strong IT background, the Bank has

developed the following IT products/ Services In
house :
Bulk Account Opening Utility
o Export Data Processing and Management

System (EDPMS)
o
Missed call Balance Inquiry facility
The Banks IT Department received ISO 27001: 2013

on Information Security Management System
(ISMS) certification for DC/ DR/ DIT on 07.01.2015
Enabled E-KYC for sourcing of information directly

from UIDAI (Aadhar) server for opening of accounts.
Mandate Management System
PMJDY accounts opening through E-KYC The
Place
: Hyderabad
Date
: 27.04.2015
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NOTICE
Notice is hereby given that the Fifteenth Annual General Meeting of shareholders of Andhra Bank will be held on Wednesday, 8th July, 2015 at 11.00 A.M at Sri Satya Sai Nigamagamamam, 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 2015 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 Report on the Balance Sheet and Accounts;
To declare dividend on Equity Shares for the FY 2014-15;
To consider and if thought fit, to pass with or without modifications the following special resolution:
RESOLVED THAT pursuant to the provisions of the Banking

Companies (Acquisition and Transfer of Undertakings) Act,
1980 (Act), The Nationalised Banks (Management and
Miscellaneous Provisions) Scheme, 1980 (Scheme) and
Andhra Bank (Shares and Meetings) Regulations, 2003 as
amended from time to time and subject to the approvals,
consents, permissions and sanctions, if any, of the Reserve
Bank of India (RBI), the Government of India (GOI), the
Securities and Exchange Board of India (SEBI), and/ or
any other authority as may be required in this regard and
subject to such terms, conditions and modifications thereto
as may be prescribed by them in granting such approvals
and which may be agreed to by the Board of Directors of
the Bank and subject to the regulations viz., SEBI (Issue
of Capital and Disclosure Requirements) Regulations, 2009
(ICDR Regulations) as amended up - to - date, guidelines,
if any, prescribed by the RBI, SEBI, notifications/circulars
and clarifications under the Banking Regulation Act, 1949,
Securities and Exchange Board of India Act, 1992 and all
other applicable laws and all other relevant authorities from
time to time and subject to the Listing Agreements entered
into with the Stock Exchanges where the equity shares
of the Bank are listed, consent of the shareholders of the
Bank be and is hereby accorded to the Board of Directors
of the Bank (hereinafter called the Board which shall be
deemed to include any Committee which the Board may
have constituted or hereafter constitute to exercise its
powers including the powers conferred by this Resolution)
to create, offer, issue and allot (including with provision for
reservation on firm allotment and/ or competitive basis of
such part of issue and for such categories of persons as
may be permitted by the law then applicable) by way of an
offer document/ prospectus or such other document, in India
or abroad, such number of equity shares and/or preference
shares (whether cumulative or not; convertible into equity
shares or not) in accordance with the guidelines framed by
RBI from time to time, specifying the class of preference
shares, the extent of issue of each class of such preference
shares, whether perpetual or redeemable, the terms &
conditions subject to which each class of preference shares
may be issued and/or other permitted securities which are

capable of being converted into equity or not, upto such
amount/s (as decided by the Board or Committee of the
Board of the Bank) which together with the existing paidup equity share capital of ` 602.85 Crores will be within
Rs.3000 Crore, being the ceiling in the Authorised Capital of
the Bank, as per Section 3(2A) of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 or
to the extent of enhanced Authorised Capital as per the
Amendment (if any), that may be made to the Act in future,
in such a manner that the Central Governments stake in
the equity paid-up capital of the bank will not go below such
percentage as may be decided by Government of India,
whether at a discount or premium to the market price, in one
or more tranches, including to one or more of the Members,
employees of the Bank, Indian Nationals, Non-resident
Indians (NRIs), Companies, Private or Public, Investment
Institutions, Societies, Trusts, Research organizations,
Qualified Institutional Buyers (QIBs) like Foreign
Institutional Investors (FIIs), Banks, Financial Institutions,
Indian Mutual Funds, Venture Capital Funds, Foreign
Venture Capital Investors, State Industrial Development
Corporations, Insurance Companies, Provident Funds,
Pension Funds, Development Financial Institutions or other
entities, authorities or any other category of investors which
are authorized to invest in equity / preference shares /
securities of the Bank as per extant regulations/ guidelines
or any combination of the above as may be deemed
appropriate by the Bank.
RESOLVED FURTHER THAT such issue, offer or allotment
shall be by way of public issues or such other issues which
may be provided by applicable laws, with or without overallotment option and that such offer, issue, placement and
allotment be made as per the provisions of the Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1980, the SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2009 (ICDR Regulations) and
all other guidelines issued by the RBI, SEBI and any other
authority as applicable, and at such time or times in such
manner and on such terms and conditions as the Board
may, in its absolute discretion, think fit.
9
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RESOLVED FURTHER THAT the Board shall have the
authority to decide, at such price or prices in such manner
and where necessary, in consultation with the lead managers
and /or underwriters and/ or other advisors or otherwise
on such terms and conditions as the Board may, in its
absolute discretion, decide in terms of ICDR Regulations,
other regulations and any and all other applicable laws,
rules, regulations and guidelines to issue such securities
to investors, whether or not such investor(s) are existing
members of the Bank, at a price not less than the price as
determined in accordance with relevant provisions of ICDR
Regulations.
RESOLVED FURTHER THAT in accordance with the
provisions of the Listing Agreements entered into with
relevant stock exchanges, the provisions of Banking
Act, 1980, the provisions of the Andhra Bank (Shares
and Meetings) Regulations, 2003, the provisions of SEBI
ICDR Regulations, the provisions of the Foreign Exchange
Management Act, 1999 and the Foreign Exchange
Management (Transfer or Issue of Security by a Person
Resident Outside India) Regulations, 2000, and subject
to requisite approvals, consents, permissions and/or
sanctions of Securities and Exchange Board of India(SEBI),
Stock Exchanges, Reserve Bank of India (RBI), Foreign
Investment Promotion Board (FIPB), Department of
Industrial Policy and Promotion, Ministry of Commerce
(DIPP) and all other authorities as may be required
(hereinafter collectively referred to as the Appropriate
Authorities) and subject to such conditions as may be
prescribed by any of them while granting any such approval,
consent, permission and/or sanction (hereinafter referred to
as the requisite approvals) the Board may, at its absolute
discretion, issue, offer and allot, from time to time in one or
more tranches, equity shares or any securities other than
warrants, which are convertible into or exchangeable with
equity shares at a later date, in such a way that the Central
Governments stake in the equity paid-up capital of the bank
will not go below such percentage as may be decided by
Government of India, to QIBs (as defined in Chapter VIII of
the ICDR Regulations) pursuant to a qualified institutional
placement, as provided under Chapter VIII of the ICDR
Regulations, through a placement document and / or such
other documents / writings / circulars / memoranda and in
such manner and on such price, terms and conditions as
may be determined by the Board in accordance with the
ICDR Regulations or other provisions of the law as may
be prevailing at that time; provided the price inclusive of
the premium of the equity shares so issued shall not be
less than the price arrived in accordance with the relevant
provisions of ICDR Regulations.
RESOLVED FURTHER THAT in case of a Qualified
Institutional Placement (QIP), pursuant to Chapter VIII of
the ICDR Regulations,
a) the allotment of Securities shall only be to QIBs within
the meaning of Chapter VIII of ICDR Regulations, such
Securities shall be fully paid-up and the allotment of
such Securities shall be completed within 12 months
from the date of this resolution;
b) The Bank is pursuant to Proviso to Regulation 85(1)

of ICDR Regulations authorized to offer shares at a
discount of not more than five percent on the price so
calculated for the QIP;
c) The relevant date for the determination of the floor price
of the securities shall be in accordance with the ICDR
Regulations.
RESOLVED FURTHER THAT the Board shall have
the authority and power to accept any modification in the
proposal as may be required or imposed by the GOI / RBI
/ SEBI / Stock Exchanges where the shares of the Bank
are listed or such other appropriate authorities at the time
of according / granting their approvals, permissions and
sanctions to issue, allotment and listing thereof and as
agreed to by the Board.
RESOLVED FURTHER THAT the issue and allotment of
new equity shares / preference shares / securities, if any,
to NRIs, FIIs and/or other eligible foreign investments
be subject to the approval of the RBI under the Foreign
Exchange Management Act, 1999 as may be applicable but
within the overall limits set forth under the Act.
RESOLVED FURTHER THAT the said new equity shares
to be issued shall rank pari passu in all respects with the
existing equity shares of the Bank including dividend, if any,
in accordance with the statutory guidelines that are in force
at the time of such declaration.
RESOLVED FURTHER THAT for the purpose of giving
effect to any issue or allotment of equity shares / preference
shares / securities, the Board, be and is hereby authorized
to determine the terms of the public offer, including the class
of investors to whom the securities are to be allotted, the
number of shares/ securities to be allotted in each tranche,
issue price, premium amount on issue as the Board in its
absolute discretion deems fit and do all such acts, deeds,
matters and things and execute such deeds, documents
and agreements, as they may, in its absolute discretion,
deem necessary, proper or desirable, and to settle or
give instructions or directions for settling any questions,
difficulties or doubts that may arise in regard to the public
offer, issue, allotment and utilization of the issue proceeds,
and to accept and to give effect to such modifications,
changes, variations, alterations, deletions, additions as
regards the terms and conditions, as it may, in its absolute
discretion, deem fit and proper in the best interest of the
Bank, without requiring any further approval of the members
and that all or any of the powers conferred on the Bank
and the Board vide this resolution may be exercised by the
Board .
RESOLVED FURTHER THAT the Board be and is hereby
authorized to enter into and execute all such arrangements
with any Book Runners, Lead Manager(s), Banker(s),
Underwriter(s), Depository(ies), Registrars, Auditors and all
such agencies as may be involved or concerned in such
offering of equity/ preference shares/ securities and to
remunerate all such institutions and agencies by way of
commission, brokerage, fees or the like and also to enter
into and execute all such arrangements, agreements,
memoranda, documents, etc., with such agencies.
11
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effect to the above, the Board, in consultation with the Lead
Managers, Underwriters, Advisors and/ or other persons
as appointed by the Bank, be and is hereby authorized to
determine the form and terms of the issue(s), including the
class of investors to whom the shares / securities are to
be allotted, number of shares/securities to be allotted in
each tranche, issue price (including premium, if any), face
value, premium amount on issue, fixing of record date or
book closure and related or incidental matters, listings on
one or more stock exchanges in India and / or abroad, as
the Board in its absolute discretion deems fit.
RESOLVED FURTHER THAT such of these shares/
securities as are not subscribed may be disposed off by
the Board in its absolute discretion in such manner, as the
Board may deem fit and as permissible by law.
effect to this Resolution, the Board, be and is hereby
authorised to do all such acts, deeds, matters and things
as it may in its absolute discretion deem necessary, proper
and desirable and to settle any question, difficulty or
doubt that may arise in regard to the issue, of the shares/
securities and further to do all such acts, deeds, matters
and things, finalize and execute all documents and writings
as may be necessary, desirable or expedient as it may in
its absolute discretion deem fit, proper or desirable without
being required to seek any further consent or approval of
the shareholders or authorise to the end and intent, that the
shareholders shall be deemed to have given their approval
thereto expressly by the authority of the Resolution.
RESOLVED FURTHER THAT the Board be and is hereby
authorized to delegate all or any of the powers herein
conferred to the Managing Director & Chief Executive
Officer and/or to the Executive Director/(s) in the absence
of the Managing Director & Chief Executive Officer or to
the Committee of Directors to give effect to the aforesaid
Resolutions.
For and on behalf of the Board of Directors
Place: Hyderabad
Date: 29.05.2015
Subject to the above, as per Regulation 68 of Andhra

Bank (Shares and Meetings) Regulations, 2003, each
shareholder who has been registered as a shareholder
on the Cut-off date, i.e. Wednesday, 01.07.2015, shall
have one vote for each share held by him/her in remote
e-voting / voting through poll.
Exercise of rights of joint holders:
As per Regulation 10 of the above Regulations, if any
share stands in the names of two or more persons,
the person first named in the register shall, as regards
voting, be deemed to be the sole holder thereof. Thus, if
shares are in the name of joint holders, then first named
person is only entitled to attend the meeting and is only
eligible to vote on the Resolutions.
2. Cut-off date for the purpose of ascertainment of
shareholders entitled to receive the annual report
including the notice of Annual General Meeting
The Bank has fixed Friday, 29.05.2015 as the cutoff date for the purpose of ascertaining the names of
shareholders entitled to receive the Annual Report
including the Notice of Annual General Meeting.
3. Appointment of Proxy
A shareholder entitled to attend and vote at the meeting
is entitled to appoint a proxy to attend and to participate
in the POLL at the venue of the General Meeting instead
of himself/herself and such a proxy need not be a
shareholder of the bank.
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. No employee of the Bank shall
be appointed as a duly authorized representative or as
a proxy.
4. Appointment of a Representative :
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.
5. Attendance slip-cum-entry pass:
For the convenience of the Members, attendance slip
is enclosed to this report. Members are requested to
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.
6. Book Closure:
The Register of Shareholders and Share Transfer Books
would remain closed from 02.07.2015 to 07.07.2015
(both days inclusive).
(Y. Amarnath)
Company Secretary
Notes:
The Explanatory Statement setting out the material facts in
respect of the business of the meeting is annexed hereto.
1. Voting Rights
In terms of the provisions of sub-section (2E) of
Section 3 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980, no shareholder
of the corresponding new Bank, other than the Central
Government, shall be entitled to exercise voting rights in
respect of any shares held by him/her in excess of ten
per cent of the total voting rights of all the shareholders
of the Bank.
13
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7. Dividend :
The Board of Directors has recommended a dividend
of ` 2.00 ps. per equity share (@20%) for the Financial
Year 2014-2015. The dividend, if approved by the
Shareholders at the Annual General Meeting, shall be
paid to the shareholders holding shares in physical
form and whose names appear in the Register of
Shareholders and to the shareholders holding shares in
electronic form on the basis of the beneficiary position
statement provided by the Depositories as at the end
of 01.07.2015. The dividend payout date is 17.07.2015.
8. Dividend payment by way of Electronic Clearing
Service (ECS) :
In order to protect the investors from fraudulent
encashment of their dividend warrants, the Bank
has offered Electronic Clearing Service facility to the
shareholders having Bank accounts at the following
centers:
Ahmedabad,
Allahabad,
Amritsar,
Aurangabad,
Bangalore, Baroda, Bhopal, Bhubaneswar, Chandigarh,
Chennai, Coimbatore, Dhanbad, Durgapur, Ernakulam,
Erode, Goa, Guwahati, Gwalior, Haldia, Hubli,
Hyderabad, Indore, Jabalpur, Jaipur, Jammu, Jodhpur,
Kakinada, Kanpur, Kolkata, Lucknow, Ludhiana,
Madurai, Mangalore, Mysore, Nagpur, Nellore, Nasik,
NewDelhi, Patna, Pondicherry, Pune, Raipur, Rajkot,
Ranchi, Salem, Siliguri, Solapur, Surat, Tiruchirapalli,
Tirupathi, Tiruvananthapuram, Trissur, Varanasi,
Vijayawada and Visakhapatnam.
Dividend payment by way of National Electronic
Clearing Service (NECS) :
The objective of the system is to facilitate centralized
processing of payment of dividend. The NECS (credit)
facilitate the Issuer multiple credits to beneficiary
accounts which have been covered under Core-Banking
Solution. For the purpose, the shareholders have to
update their bank account details by furnishing their
CBS account number, MICR No., etc. to their respective
Depository Participants in case of dematerialized
holdings and to the Registrars & Transfer Agents in
case of physical holdings. The NECS facilitates the
shareholder to receive dividend in his/her account on
the pay-out date itself.
9. Updating of any change in address, bank details,
etc. of the shareholders :
The shareholders holding the shares in physical form are
requested to inform the Bank or its Registrars for noting
any change in their address, bank account details, 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, bank
account details, if any, with their respective Depository
Participants.
The shareholders holding shares in physical form are
requested to inform their PAN details, e-mail id, mobile
no., etc. to the Bank or its Registrars for updation of
shareholder details. Shareholders holding shares in

electronic form are requested to update the said details
with their Depository Participant.
10.Consolidation of Folios :
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 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.
11.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:

M/s. MCS Share Transfer Agent Limited

(Unit: Andhra Bank)

002, Ground Floor,

Kashiram Jamnadas Building

5, P.DMello Road, Masjid East,

Mumbai 400 009.
12. Requests to Shareholders :
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.
c. Shareholders are advised to avoid bringing bags /
brief cases/ tape records / cameras etc. as these
items are subject to a security check and may not be
allowed at the venue.
13. Green Initiative:
In support of the green initiative, the Bank has sent the
soft copy of the annual report through email to those
shareholders who have registered their email id with
their depository participant/ 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).
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.
14. Poll process
The voting on approval of agenda items will not be on
the basis of show of hands but shall be done through
POLL by means of a secret ballot, at the venue of the
Annual General Meeting.
15
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15. Voting through electronic means
(vii) If you are a first time user, follow the steps

given below:

For Members holding shares in Demat

Form and Physical Form as on cut-off

date 01.07.2015
PAN
Enter your 10 digit alpha-numeric *PAN

issued by Income Tax Department (Applicable

for both demat shareholders as well as

physical shareholders)

Members who have not updated
their PAN with the Bank/RTA /Depository
Participant are requested to use
the first two letters of their name and the 8
digits of the sequence number in the PAN
field.
In case the sequence number is less
than 8 digits enter the applicable number
of 0s before the number after the first
two characters of the name in CAPITAL
letters. Eg. If your name is Ramesh
Kumar with sequence number 1 then
enter RA00000001 in the PAN field.
DOB
Enter the Date of Birth as recorded in your

demat account or in the Banks / RTAs

records for the said demat account or folio in

dd/mm/yyyy format.
Dividend Enter the Dividend Bank Details as recorded in
Bank
your demat account or in the Banks / RTAs
Details records for the said demat account or folio.
Please enter the DOB or Dividend Bank
Details in order to login. If the details are
not recorded with the depository or Bank
/ RTA, please enter the member id / folio
number in the Dividend Bank details field
as mentioned in instruction (iv).
(viii) After entering these details appropriately, click on
SUBMIT tab.
(ix) Members holding shares in physical form will then
directly reach the Company 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. 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.
(x) For Members holding shares in physical form, the
details can be used only for remote e-voting on the

resolutions contained in this Notice.
(xi) Click on the EVSN for the relevant <ANDHRA
BANK> on which you choose to vote.
In compliance with provisions of Clause 35B of the Listing

Agreement with Stock Exchanges, read with Rule 20 of the
Companies (Management and Administration) Amendment
Rules, 2015 and in compliance with the SEBI Circular dated
17.04.2014, the Bank is pleased to offer Remote e-voting
facility as an alternative mode of voting, besides physical
ballot, for its Members at the Annual General Meeting which
will enable them to cast their votes electronically and to
pass the RESOLUTIONS.
The facility to exercise the right to vote on resolutions
proposed to be considered at General Meeting by the
shareholders, by electronic means has been termed as
Remote e-voting by Ministry of Corporate Affairs vide their
Notification dated 19.03.2015. These Rules are called
as the Companies (Management and Administration)
Amendment Rules, 2015.
For this purpose, the Bank has appointed M/s. Central
Depository Services (India) Limted (CDSL) as e-voting
agency to provide the Remote e-voting platform for
facilitating its Members to vote electronically. The Bank has
also appointed M/s.T.R.Ramabhadran, Practising Company
Secretary, Hyderabad, as the Scrutiniser for conducting the
Remote e-voting and POLL process in a fair and transparent
manner.
The instructions for members for voting electronically
are as under:(i) The remote e-voting period begins at 10.00 A.M. on
05.07.2015 and ends at 5.00 P.M. on 07.07.2015
During this period, shareholders of the Bank holding
shares either in physical form or in dematerialized
form, as on the cut-off date, 01.07.2015, may cast
their vote electronically. The remote e-voting module
shall be disabled by CDSL for voting thereafter.
(ii) The shareholders should log on to the e-voting
website : www.evotingindia.com.
(iii) Click on Shareholders.
(iv) Now Enter your User ID
a. For CDSL: 16 digits beneficiary ID
b. For NSDL: 8 Character DP ID followed by 8
Digits Client ID
c. Members holding shares in Physical Form
should enter Folio Number registered with the
Bank.
(v) Next enter the Image Verification as displayed and
Click on Login.
(vi) If you are holding shares in demat form and had
logged on to www.evotingindia.com and voted on
an earlier voting of any company, then your existing
password is to be used.
17
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18

(xii) 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.
(xiii) Click on the RESOLUTIONS FILE LINK if you
wish to view the entire Resolution details.
(xiv) 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.
(xv) Once you CONFIRM your vote on the resolution,
you will not be allowed to modify your vote.
(xvi) You can also take out print of the voting done by
you by clicking on Click here to print option on
the Voting page.
(xvii) If Demat account holder has forgotten the same
password then enter the User ID and the image
verification code and click on Forgot Password &
enter the details as prompted by the system.
(xviii)
Note for Non Individual Shareholders
(Institutional Investors) and Custodians
Non-Individual shareholders (i.e. other than
Individuals, HUF, NRI etc.) and Custodian are
required to log on to www.evotingindia.com;
and register themselves as Corporates.
A scanned copy of the Registration Form
bearing the stamp and sign of the entity should
be emailed to helpdesk.evoting@cdslindia.
com;.
After receiving the login details a compliance
user should be created using the admin login
and password. The Compliance user would be
able to link the account(s) for which they wish
to vote on.
The list of accounts should be mailed to
helpdesk.evoting@cdslindia.com;
and on
approval of the accounts they would be able to
cast their vote.
A scanned copy of the Board Resolution and
Power of Attorney (POA) which they have
issued in favour of the Custodian, if any, in
PDF format, should be sent to the Scrutinizer
through e-mail: ramabhadran301012@gmail.
com; to verify the same.
General Information:
(A) The Remote e-voting period begins from 10.00
A.M on Sunday, 05.07.2015 and ends at 5.00
P.M. onTuesday, 07.07.2015. During this period,
shareholders of the Bank, holding shares either in
physical form or in dematerialized form, as on the
cut-off date (for voting), 01.07.2015, may cast their
vote electronically. The Remote 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;
(C) You are advised to cast your vote through Remote
e-voting or through Poll at the Annual General
Meeting. A Shareholder may participate in the
General Meeting even after exercising his/her right
to vote through remote e-voting but shall not be
allowed to vote again.
(D) As per the new Rules, the cut-off date to determine
the eligibility of the shareholders to vote by electronic
means or through POLL process, is a date not
earlier than seven days before the date of General
Meeting, viz.,01.07.2015. The shareholders who
are the Beneficial owners as on 01.07.2015 will be
eligible to participate in voting. In other words, the
shareholders holding shares as on 01.07.2015 only
will be able to access the remote e-voting module to
vote electronically and/or participate in the physical
POLL at the venue of the Annual General Meeting.
16. The issue of POLL Paper will commence immediately
after an announcement in this regard is made by the
Chairman and Managing Director at the venue of the
General Meeting. The Chairman shall at the General
Meeting at the end of discussion on the resolutions
on which voting is to be held, allow voting with the
assistance of the scrutinizer by use of polling paper
for all those members who are present at the General
Meeting but have not cast their votes by availing the
remote e-voting facility.
Entry Pass has to be retained till the conclusion of
the meeting. The number of votes will be equivalent
to the number of shares held by them on the Cut-off
date, i.e. 01.07.2015 (1st July, 2015).
Shareholders may exercise their right by indicating
their approval against the agenda items in the POLL
paper and deposit them in the POLL Box(es) kept at
the venue of the General Meeting.
The counting of votes would be taken up thereafter.
The consolidated results of remote e-voting and Poll
will be posted on the website of the Bank and on the
website of the Depository, viz., CDSL, and will be
informed to the Stock Exchanges, within 48 hours of
holding of AGM.
Note:
Bank shall highly appreciate if shareholders, desirous
of making any suggestion, seeking clarification, etc.
relating to the item of agenda only, at the Annual General
19
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f) The approval of the shareholders of the Bank was
obtained in the Extraordinary General Meeting held
on 19.12.2013 for raising of capital through Qualified
Institutional Placement / Follow-on Public Offer. As per
the guidelines, the validity of the resolutions is restricted
to twelve months for such QIPs. Keeping in view the
future requirements (as denoted in Point (a) above), the
approval of the shareholders is sought once again.
g) As the pricing of the offering cannot be decided except
at a later stage, it is not possible to state the price of
shares / securities to be issued. However, the same
would be in accordance with the provisions of the ICDR
Regulations, the Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1980 and the Andhra Bank
(Shares and Meetings) Regulations, 2003, as amended
from time to time or any other guidelines / regulations /
consents, etc. as may be applicable / required.
h) The detailed terms and conditions for the issuance of
the Equity Shares as and when made will be determined
by the Board in consultation with the Merchant Bankers,
Lead Managers, Advisors and such other authorities as
may required to be considered by the Bank considering
the prevailing market conditions and other relevant
factors. The Resolution seeks to give the Board powers
to issue Equity Shares / Securities in one or more
tranches at such time or times, at such price or prices,
and to such of the Investors as are mentioned therein as
the Board in its absolute discretion deems fit.
i) For reasons aforesaid, an enabling resolution is
proposed to give adequate flexibility and discretion to
the Board to finalise the terms of the issue.
j) The equity shares issued, shall rank pari passu in all
respects with the existing equity shares of the Bank
including dividend.
k) For this purpose the Bank is required to obtain the
consent of the shareholders by means of a special
resolution. Hence your consent is requested for the
above proposal.
Your Directors recommend the resolutions as set out in the
Notice.
None of the Directors of the Bank is interested or concerned
in the aforementioned Resolution(s), except to the extent
of their shareholding in the Bank and their participation in
raising of capital, if any.
Meeting, may send their suggestions, Queries, etc. so

as to reach the Investors Services Cell at Head Office
of the Bank atleast 15 days before the date of meeting.
Explanatory Statement in respect of the business
mentioned against Item No.3 of the Notice
Raising of capital through Qualified Institutional
Placement, Follow-on Public Offer, etc.:
To raise capital by way of Qualified Institutional
Placement to Qualified Institutional Buyers, Follow-on
Public Offer, etc., in such a manner that the Central
Governments stake in the equity paid-up capital of
the bank will not go below such percentage as may be
decided by Government of India.
a) The present Paid-up Capital of the Bank is Rs.602.85
Crore and the Capital Adequacy Ratio of the Bank as
on 31.03.2015 is 10.63% which is well above the 9%
stipulated by the Reserve Bank of India. However, in
view of the growth plans of the Bank, the implementation
of BASEL-III norms and consequent capital charge, there
is a need to increase the capital to further strengthen the
Capital Adequacy Ratio.
b) The Bank in terms of Section 3(2B)(c) of the Banking
Companies (Acquisition and Transfer of Undertaking)
Act, 1980, will obtain requisite approval of Government
of India, Ministry of Finance and Reserve Bank of India
for increasing the paid-up capital of the Bank.
c) Sub-Clause (a) of Clause 23 of Listing Agreement
provides that whenever any further issue or offer is
being made by the Bank, the existing shareholders
should be offered the same on pro-rata basis unless the
shareholders in the General Meeting decide otherwise.
The said resolution, if passed, shall have the effect of
allowing the Board on behalf of the Bank to create, offer,
issue and allot the securities otherwise than on pro-rata
basis to the existing shareholders.
d) The resolution seeks to enable the Bank to create,
offer, issue and allot equity shares / preference shares
/ securities by way of QIP, Follow-on Public Offer, etc.
The issue proceeds will enable the Bank to strengthen
its Capital Adequacy Requirements as specified by RBI
from time to time.
e) The Resolution seeks to empower the Board of Directors
to issue shares through QIP, without further approval of
the shareholders.
Place : Hyderabad
Date : 29.05.2015

21
Y. Amarnath
Company Secretary
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22

1.1 Monetary and Liquidity Conditions
During the financial year 2014-15, the stance of monetary
policy has changed to being accommodative. Carefully
reading the developments in the inflation trajectory and
the evolving domestic and external conditions, RBI has
reduced policy rate (Repo Rate) to 7.50%. As committed, the
policy stance of RBI since then has been accommodative.
Leveraging the new liquidity management framework of
using Term Repos, the RBI has ensured the spread of Money
Market rates in around the policy rate on a sustainable basis.
This has led to reduced volatility in the money market rates.
Broad money (M3) growth remained low during Q3 and
Q4 of FY 2014-15. With credit and deposit growth moving
broadly in tandem, liquidity conditions in the system remained
comfortable throughout, barring transient liquidity mismatches
due to frictional factors. Currency demand started picking up
since Q3 with the festival season and drained some liquidity,
but timely liquidity provision by the Reserve Bank smoothened
these short-lived spikes. The provision of primary liquidity was
augmented by the large expansion in net foreign assets of
the Reserve Bank. Active sterilisation operations, however,
contained the growth of reserve money. The evolution of
overall global liquidity conditions has been conditioned by
expectations relating to high intensity events such as the liftoff of US interest rates, monetary accommodation elsewhere
and geo-political flashpoints.
The annual average CPI has fallen significantly below the
trend due to favourable base effects and also due to falling
consumption demand. The average CPI was 300 bps below
the 8% Jan 2015 target set by RBI. This has given room for
monetary accommodation by RBI and resulted in reduction
of policy rates on two occasions. The lower inflation coupled
with falling international commodity prices is yet to show its
full impact on the pricing across sectors. The disinflationary
momentum set by the lower prices and weak domestic
demand remained vulnerable to both domestic and external
shocks. However, the inflationary expectations have been
contained and credibility of the disinflationary momentum has
also improved as compared to previous year.
In the credit market, subdued activity in the first half of the
year picked up from Q3 as banks shifted their portfolios
towards retail lending, especially housing. Credit flow to the
industrial sector particularly to food processing and basic
metals and services, also improved modestly reflecting
the generally sluggish demand for credit as also regulatory
requirements relating to the liquidity coverage ratio (LCR).
On the other hand Banks investments in G-secs showed
a sharp increase during 2014-15 resulting in excess SLR
holdings of banks. Banks have been rebalancing their lending
portfolio away from sectors in which their assets are under
stress to relatively stress free sectors such as retail housing
and automobiles. Following the 50 basis points reduction in
the policy rate in Q4, 22 banks have reduced their median
term deposit rates in the range of 7-53 bps while 14 banks
reduced their base rates in the range of 10-50 bps.
In spite of the ease in general level of liquidity and falling cost
of funds, the credit growth remained low, due to the lack of
domestic demand and slow pick up in the investment cycle.
Consequently, the credit growth of the Banks at 9.5% is much
lower than 14% registered in the last two years.
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, 2015.
MANAGEMENTS DISCUSSION & ANALYSIS
MACRO ECONOMIC DEVELOPMENTS
The global economic activity recovered during FY 2014-15,
albeit, marginally with divergent rates across economies.
While most of the Emerging markets Economies (EMEs)
are experiencing slowdown, the Advanced Economies (AEs)
are battling the risks of deflation barring the US. This has
resulted in continuation of unconventional monetary policies
by the AEs and by EMEs to fight disinflationary/ inflationary
conditions respectively. As a consequence, there have been
large movements in exchange rates and other asset prices.
In sum, the AEs are yet to recover from the after affects of
global financial crisis, while the EMEs are confronted with
rising negative output gap, falling potential growths, which
restricted the revival of global growth in FY 2014-15.
According to Advance Estimates of National Income published
by Central Statistics Office (CSO), Ministry of Statistics &
Programme Implementation (Govt of India) based on the new
GDP series, the growth in Gross Domestic Product (GDP)
during 2014-15 is estimated at 7.4% (y-o-y) as compared
to the growth rate of 6.9% in 2013-14, suggesting a revival
in the domestic economic activity in 2014-15. However, the
divergence between other lead indicators of economic activity
and the GDP growth numbers, suggest that the recovery is
not broad based.
As per IMF, global growth in 2015 is likely to be about 3.5%
as compared to 3.3% registered for 2014. With the concerns
of secular stagnation rising over the recovery in AEs, and
the slowing down of growth in China, Russia, Japan and
euro area has affected the world trade substantially. The
subdued global demand has impacted the pace of recovery
in India. Though comforted with the falling crude price, the
trade deficit widened during FY 2014-15, due to decline in
exports owing to weak external demand. This has impacted
the pickup in the real economy.
On the domestic front macroeconomic stability was reassured
with falling inflation which is further supported with a credible
government at the centre. This has raised the investor
confidence and revived their interest in the Indian Economy.
Coupled with the easy monetary conditions elsewhere and
rising confidence on performance of the economy, Indian
financial markets have witnessed higher inflows both in debt
and equity. This has resulted in comfortable liquidity situation
for a major part of the year. However, the actual revival in
the investment cycle to the fullest extent is yet to seen,
consequently the output gain due to Capital expenditure by
the corporates has been minimal in FY 2014-15.
FY 2014-15 began on strong positive note corroborated
by the formation of a strong government at the centre and
abatement of inflationary pressures. The high expectations
were moderated during the course of the year tracking global
developments and pace of domestic policy actions. In sum,
recovery in the economic activity and investment cycle has
begun in FY 2014-15, but the full effects on output are yet
to be seen.
23
{
29 ], 2015 29,682 \
\ \ ,
{ , \
] ]
] 2015-16 ,
[ \, 2015

] ] () \
\, 2015 8.8% ], 2015
8.5% , 2014 8.9%
- -
2014-15 -]
] , ] 112% --
] , -
( ) 2014-15
\ 31, 2015 1890
, ] 77% 2014-15
] 51% (--) [
[
2014-15 -

] (] ) , , 2014
\ -
- [
{ ]
]- ]
]- ,
, 2014-15 ]- ]
, 2014 8.52% - 72
31 \,2015 7.80%
] () 41
, ] 34
, \ ]
[ 1240 574 ]

1.2
- { -
\ ,
-
, [ ],

]
3
2009-10 - ,
-

, ]
\ () , ] 2014-15
2014-15 \
] ]-
- ]
-
{ [ 3 , 2015
343 - {, ]
, ] { ,
] .. -
1.3 ]
\- \ ]-
] 2014-15 [
\- ] -
]- -
]
]
] 2014-15 \ ]
-
, ,
\ \-
-
\ , ] 2014-15
\ -

- -] -
, ]-
, 2014
- ], 2015
] ], 2015 -
24

1.2 BoP and External Sector
Export performance has been progressively weakening and
contraction set in on both non-oil and petroleum product
exports. Fragile external demand conditions and the softness
in international commodity prices have taken a heavy toll, as
in several other EMEs in Asia. In particular, price realisations
have been eroded, despite export volumes going up. With the
Indian rupee gaining in real effective terms, export margins
are coming under pressure for those exporters without
substantial imported inputs. Net terms of trade gains and
compression in imports of petroleum products have narrowed
the trade deficit in the last three months to its lowest level
since 2009-10. Gold imports remained contained; although
non-oil non-gold imports grew at a modest pace in these
months, they may be reflecting substitution effects in view
of the sluggishness in domestic manufacturing.
Exports of services, particularly, software and travel have
provided a silver lining and have helped to hold down the
current account deficit (CAD) which has narrowed in Q3 of
FY 2014-15. This improvement might extend to Q4 of FY
2014-15 and thereafter. As a result, capital inflows mainly
portfolio flows into domestic debt and equity markets and
foreign direct investment have exceeded the external
financing requirement and enabled accretion to the foreign
exchange reserves which reached an peak of US$ 343
billion as on April 3, 2015. These reserves, including forward
purchases that will be delivered over the next few months,
provide some buffer against potential capital outflows when
monetary policy normalisation in AEs commences.
1.3 Equity and Bond Markets
Amidst abundant global liquidity and risk-on/risk-off
fluctuations in investor appetite, financial markets in India
rallied strongly in the second half of 2014-15, supported
by improvement in domestic macroeconomic conditions.
Liquidity was comfortable in all segments and this was
reflected in a pick-up in turnover, softening of interest rates,
an appreciating bias in the exchange rate of the rupee and
equity markets scaling historic highs.
Domestic financial markets have been buoyed through
2014-15 by the global search for yields as fears of imminent
normalisation of US monetary policy receded and ultraaccommodative monetary easing commenced in the euro
area and Japan. Barring sporadic volatility sparked by
incoming data, India became a preferred destination in
portfolio reallocations, with discernible differentiation vis-vis other EMEs. Liquidity conditions were expansionary in all
segments, spurring trading activity.
resumption of portfolio investment flows . Buoyant sentiment

bounced back with the Reserve Banks announcement of
a cut in the policy repo rate on January 15, and the BSE
Sensex reached a historic high closing at 29,682 on January
29, 2015. Equity markets gave up some gains on concerns
following the results of Delhi elections, weak results reported
by some big corporates, poor Chinese trade data and decline
in European stocks. Equity markets recovered and gained
strength with the announcement of the Union Budget 201516 as also passing of key legislations relating to coal, mining
and insurance subsequently. During March 2015, the stock
market eased moderately on global cues.
The market for commercial paper (CPs) picked up momentum
during Q3 and Q4. This reflected some substitution of shortterm bank credit due to the weighted average discount rate
of CPs softened from 8.9 per cent during the second half
of September 2014 to 8.5 per cent in the second half of
January 2015, before hardening to 8.8 per cent in the first
half of March 2015.
Activity in the corporate bond market also gathered pace in
the second half of FY 2014-15, driven by private placements
which recorded a y-o-y growth of 112 per cent. On the other
hand, amounts mobilised through public issues declined
through this period (up to February). The significant increase
in resource mobilisation through corporate bonds could be
reflecting substitution effects since bank credit growth has
remained subdued in 2014-15. FPIs investment in corporate
bonds stood at Rs 1,890 billion as on March 31, 2015,
accounting for 77 per cent of the limit, and as a consequence,
secondary market trading volumes surged by 51 per cent
(y-o-y) in the second half of 2014-15. Notwithstanding
increased resource mobilisation through corporate bonds and
CPs, the flow of financial resources to the commercial sector
remained lower during 2014-15 than a year ago, mainly due
to the deceleration in non-food credit.
In the Government securities (G-sec) market, yields softened
through Q3, barring some spikes during the second half
of December 2014 due to the Ukrainian crisis followed by
the Russian currency crisis. Buoyant investor sentiment
conditioned by the ongoing disinflation in India and
expectations of monetary policy easing helped the market to
shrug off the impact of the Federal Reserve completely exiting
quantitative easing (QE) in October. G-sec yields hardened
transiently in response to the reduction in the SLR in February
and the broadly unchanged size of the market borrowing
programme announced in the Union Budget. Barring these
episodes, the G-sec market was range bound during FY
2014-15 with a downward shift in the yield curve The 10- year
yield declined by 72 basis points from 8.52 per cent at the
end of September 2014 to 7.80 per cent on March 31, 2015.
Barring soft patches, equity markets rallied through the

second half of 2014-15, scaling all-time highs. Indian
indices were among the better performing in the world, with
significantly attractive valuations relative to fundamentals and
the cross-country EME experience. Some of these gains were
pared during December 2014 by pessimism triggered by fears
of earlier than expected reversal in the US interest rate cycle,
uncertainty relating to Greece and geo-political tensions in
the Ukraine and the Middle East. Equity markets, however,
started gaining again from the beginning of January 2015 on
In the primary market, Qualified Institutional Placement (QIP)

was moderate at ` 41 billion while equity and debt issues
declined to ` 34 billion during Q3. On the other hand, private
placements of corporate bonds and mutual funds spurted
to ` 1,240 billion and ` 574 billion, respectively. There has
already been some improvement in resource mobilisation in
25
2014-15 \ .3298
] 2760 19.5% -
] .436 638
46.6% - ]
[ ] 2015-16
- \
\
1.4 \
\, 2015 (\, ) 2015
), \ ] ( )
] 85,85,644 , ] 11.4% -
14.6%
9.5% ]
2014-15 65,65,676
, ] 94,418 201415 2013-14 ] 13.9%
-
- -
-] 76.5% , ]
77.8%
2.
2.1
31 \ 2015 ,
31.03.2014 .2,52,494 [ .2,84,588
12.7% ] ( )
2.2 ]
] 31.03.2015 .1,55,012
] .13167 (9.3%) ]
(\ \) ] 27.4%
31.03.2015 \ ] .9,706 ]
31.03.2014 7,493 , 29.5%
]
\ ] 31.03.2015 [ 32,696
] 31.03.2014 27,693
18.1% ]
] 31.03.2015 [ 1,12,610
] 31.03.2014 .1,06,656 5.6%
]
2.3
31.03.2014 .1,10,649 [
31.03.2015 17.1% . 1,29,576

31.03.2014 20,267 31.03.2015
.19,892
, 21.7%
31.03.2014 .18,238 [ 31.03.2015
.22,200
2.4
2014-15 2013-14 .15,630
14.3% . 17,868 ]
[ 1499 ] .1333
2.4.1 ] 14.5% ] 201314 . 14,297 [ 2014-15 .16,369

] 2013-14 .11,114
14.6% 2014-15 .12,742
] 16.6% 2013-14
.3008 [ 2014-15 3509
2.4.2 ] 31.03.2015
.117
2.4.3 2014-15 .14,570
] .12870
\ .2739 31.03.2015

11.65%
1 ],
(. )
2013-14 2014-15

] 14297.32 16368.61 2071.29 14.50%

] 10559.98 11830.57 1270.59 12.03%
]
3737.34 4535.04
800.7 21.42%
1332.84 1499.84
167 12.53%
395.40
366.5
-28.9 -7.34%
937.44 1133.34
195.9 20.90%
2309.94 2739.44
429.5 18.59%
2760.24 3298.44
538.2 19.50%
2324.66

2660 335.34 14.43%
435.58 638.44 202.86 46.57%
]
] -2
2014-15 159.61
.2,616.95
( )
.144.68
26

Q4 in response to investment-friendly measures announced
in the Union Budget 2015-16 and steps taken by the SEBI to
streamline existing regulations relating to public shareholding
of state-owned companies.
1,499 Crore compared to ` 1,333 Crore in the previous

year. Operating Profit of the Bank for 2014-15 increased to
` 3,298 Crore compared to `2,760 Crore in the previous year
registering a growth rate of 19.5%. Net Profit increased to
` 638 Crore as compared to `436 Crore in the previous year,
registering the growth rate of 46.6%.
1.4 Trends in Banking Industry

For the Financial Year ended March 2015 (as on last reporting
Friday of March 2015) the Deposits of Scheduled Commercial
Banks (SCBs) stood at ` 85,85,644 Crore registering a
growth rate of 11.4% over the previous year, much lower
than the growth rate of 14.6% recorded during the previous
financial year.
2.4.1 The Total Interest Income recorded a growth rate of

14.5 % and increased from `14,297 Crore during 2013-14
to Rs. 16,369 Crore during 2014-15. Of this, Interest Income
from Advances grew by 14.6% from ` 11,114 Crore during
2013-14 to `12,742 Crore during 2014-15. Interest Income
from investments increased by 16.6% from `3008 Crore
during 2013-14, and stood at ` 3509 Crore during 2014-15.
Gross Bank Credit for SCBs recorded a growth rate of 9.5%

over the previous year, and stood at ` 65,65,676 Crore on
the last reporting Friday of FY 2014-15, out of which Food
Credit stood at ` 94,418 Crore. The growth in advances
during 2014-15 was also much lower than the growth rate
of 13.9% registered during 2013-14. The muted recovery
and slow pick in the investment demand in the economy has
adversely affected the credit off-take and asset quality. The
Credit-Deposit Ratio remained at 76.5%, lower than 77.8%
at the end of the previous financial year.
2.4.2 Out of total Non Interest Income, Fee Based Income

for the financial year ended 31.03.2015 stood at `117 Crore.
2.4.3 Total Expenses during the financial year 2014-15
were `14,570 Crore against `12,870 Crore during the
previous year. Of this, Operating Expenses stood at ` 2,739
Crore. Establishment Expenditure as a percentage of Total
Expenditure stood at 11.65% for the financial year ended
31.03.2015.
2.PERFORMANCE HIGHLIGHTS OF THE BANK
Table 1: Highlights of Revenue, Expenditure and

Profitability
2.1 Business
(` in Crore)
For the financial year ended 31st March 2015, Andhra Banks
Business increased to `2,84,588 Crore from ` 2,52,494 Crore
as on 31.03.2014, recording a growth rate of 12.7% (y-o-y).
2013-14
2014-15
Total Interest
Income
14297.32
16368.61
2071.29
14.50%
Total Interest
Expenditure
10559.98
11830.57
1270.59
12.03%
Net Interest
Income
3737.34
4538.04
800.7
21.42%
Other Income
1332.84
1499.84
167
12.53%
Profit on sale of
Investments
395.40
366.5
-28.9
-7.31%
Core Other
Income
937.44
1133.34
195.9
20.90%
Operating
Expenses
2309.94
2739.44
429.5
18.59%
Operating Profit
2760.24
3298.44
538.2
19.50%
Gross Bank Credit increased by 17.1% from ` 1,10,649 Crore

as on 31.03.2014 to ` 1,29,576 Crore as on 31.03.2015.
Provisions and
Contingencies
2324.66
2660
335.34
14.43%
Credit to Agriculture Sector stood at ` 19,892 Crore as on

31.03.2015. as against ` 20,267 Crore as on 31.03.2014.
Net Profit
435.58
638.44
202.86
46.57%
2.2 Deposits
Andhra Banks Total Deposits stood at ` 1,55,012 Crore as
on 31.03.2015, recording an incremental growth of ` 13,167
Crore (9.3%) over the previous year. The share of CASA
deposits (current and savings) in Total Deposits stood at
27.4%.
Current Deposits stood at ` 9,706 Crore as on 31.03.2015
as compared to ` 7,493 Crore as on 31.03.2014, recording
a y-o-y growth of 29.5%.
Savings Bank Deposits increased to ` 32,696 Crore as
on 31.03.2015, up from ` 27,693 Crore as on 31.03.2014,
growing at a rate of 18.1%.
Term Deposits increased from ` 1,06,656 Crore as
on 31.03.2014 to ` 1,12,610 Crore as on 31.03.2015,
registering a growth rate of 5.6%.
2.3 Advances
Absolute
Growth
Percentage
Growth
APPROPRIATIONS
The appropriations made out of Net Profit are shown in Table
2. An amount of ` 159.61 Crore was transferred to statutory
reserves during 2014-15, and with this, the statutory reserves
now stand at ` 2616.95 Crore. Transfer towards Dividend
(including Dividend Tax) amounted to ` 144.68 Crore.
Credit to Micro, Small and Medium Enterprises (MSME)

increased from `18,238 Crore as on 31.03.2014 to Rs. 22,200
Crore as on 31.03.2015 registering a growth rate of 21.7%.
2.4 Profitability
Total Income for the financial year 2014-15 increased by
14.3%, from ` 15,630 Crore during financial year 201314 to `17,868 Crore. Non-Interest Income increased to `
27
2 ]
2.7 ]
(. )

.. - , - III
- 1 , 2013 , 1 , 2013
-III ]-
2014-15
638.43
56.16
] 31.03.2015 .13,218 ]
10.63%, 9%
159.61
76.55
28.77
190.00
( )
144.68
-III [ ] -
, ]-
] ()
], - ]- ] ] -III
- -II ]
94.98
4

-I ]
2.5

- \ ] ] 3.00% ]
2.76 % 45.56 %
45.37% ] () .10.82
() 153.83 .
-I ]
3283
13218
3.
( ] ) 12.7%
] , ] 31.03.2014 . 2,52,494 [ 31.03.2015
.2,84,588
31.03.2014 31.03.2015
] (%)
626
-II ]
31.03.2015
] 2.93% ]
5.31%

31 \ 2015
( III)
9309
11.22
11.38
] (%)
7.81
7.73
] ] (%)
2.76
3.00
](%)
9.40
9.64
(%)
6.95
6.97
(%)
45.56
45.37
- III (%)
(%)
10.78
0.29
10.63
0.38
7.67
10.82
(.)
145.57
153.83
(%)
3.11%
2.93
\ ]
9668.27
6.24%
(%)
5.29%
5.31
\ ]
32695.8
21.10%
112609.79
72.66%
(1+2+3)
154973.86
100.00%
(%)
](.)
3.1 ]
] ( ] ) 31.03.2014 .1,41,815
[ 31.03.2015 .1,54,974
9.28% ] ] .9,668 \
], .32,696 \ ] .1,12,610
]
5 ] -
(. )
. ]
.
31.03.2015
2.6 ]
(. )

]

()
31.03.2014 31.03.2015
590
8148
8583
603
9461
9274
9.28%
.31.03.2015 ] ( ]
] )
28

2.7 CAPITAL ADEQUACY
Table 2: Appropriations out of Net Profit

2014-15
Appropriation out of Net Profit
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.
638.43
Balance brought forward
56.16
Transfer to Statutory Reserves
159.61
Transfer to Capital Reserve
76.55
Transfer to Revenue Reserves
28.77
Transfer to Special Reserve
190.00
Transfer to proposed Dividend
144.68
The total Capital Funds of the Bank are at ` 13218 Crore as

on March 31, 2015 and the Capital Adequacy Ratio at 10.63%
is above the required RBI prescribed norm of 9%.
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.
(including Dividend Tax)

Profit carried over to Balance Sheet
94.98
2.5 KEY FINANCIAL RATIOS

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 3.00% compared to 2.76%
in the previous year. Cost to Income Ratio stood at 45.37%,
as compared to 45.56% for the previous year. Earnings per
Share (EPS) stood at `10.82 and Book Value per Share
(BVPS) stood at `153.83
Table 4: CRAR Position

(` in crores)

31 March 2015

(Basel III)
Tier-1 Capital
9309
Additional Tier-1 Capital
626
Tier-II Capital
3283
Total
13218
3. BUSINESS REVIEW
Gross Non-Performing Assets to Gross Advances stood at

5.31% and Net
Non-Performing Assets to Net Advances
stood at 2.93% for the financial year ended 31.03.2015.
Table 3: Key Financial Ratios
Parameter
The Total Business (Total Deposits plus Gross Bank Credit)

of the Bank registered a growth rate of 12.7%, up from
` 2,52,494 Crore as on 31.03.2014 to ` 2,84,588 Crore as
on 31.03.2015.
31.03.2014 31.03.2015
Yield on Advances (%)
11.22
11.38
Cost of Deposits (%)
7.81
7.73
3.1 Aggregate Deposits
Net Interest Margin (%)
2.76
3.00
Yield on Funds (%)
9.40
9.64
Cost of Funds (%)
6.95
6.97
Cost-to-income Ratio (%)
45.56
45.37
Aggregate Deposits (excluding inter-bank deposits) went up

from ` 1,41,815 Crore as on 31.03.2014 to `1,54,974 Crore as
on 31.03.2015, registering a growth rate of 9.28%. Aggregate
Deposits comprised of Current Deposits of ` 9,668 Crore,
Savings Deposits of ` 32,696 Crore and Term Deposits of
` 1,12,610 Crore.
CRAR Basel III (%)
10.78
10.63
Return on Assets (%)
0.29
0.38
Earning Per Share (`) 7.67
10.82
Book Value Per Share (`)
145.57
153.83
Net NPA (%)
3.11%
2.93%
Gross NPAs (%)
5.29%
5.31%
Table 5: Category-wise classification of Aggregate

Deposits

(` in Crores)
Sl. Type of Deposits
Amount Percentage of
No.
31.03.2015
Aggregate
Deposits
1 Current Deposits
9668.27
6.24%
2 Savings Bank
32695.8
21.10%
Deposits
3 Term Deposits
112609.79
72.66%
4 TOTAL (1+2+3)
154973.86
100.00%
Growth rate over
9.28%
previous year (%)
2.6 CAPITAL & NET WORTH

(` in Crore)
Parameter
31.03.2014 31.03.2015
Equity Capital
Reserves Surplus
Networth of the Bank (Tangible)
590
603
8148
9461
8583
9274
Area-wise distribution of Aggregate Deposits (Total Deposits

less Inter-Bank Deposits) as on 31.03.2015 is set forth in the
following Table.
29
6 ]
8 (31.3.2015 )
( )
(. )
.
.
30.03.2015
11010.83 (20.6%)
2 -
24086.51 (13.6%) 15.54%
42083.31 (14.4%) 27.16%
77793.20 (4.2%) 50.20%
5 (1+2+3+4)

2014 -15
1. (2 7)
45507.52
2 (2.1 +2.2)
20432.78
2.1
19892.22
2.2 ()
540.56
3.
16952.33
4.
1603.38
5. ( )
6519.03
6.

I. ( %)
40.71
II. (%)
( %)
18.28
3.2.1.1
\, 2015 .20,433
] 541
-
18%
, 31.03.2015 18.28 % ]
3.2.1.2 (\])
2,31,032
{ .4,619
3.2.2 ()
\, 2015
21.79% ] .16,950.15
.3,033
3.2.3 {
{ . 13,959 10%
12.49%
3.2.4
.5,873 , ] 15 %
14.01%
3.2.5
.13,784 , 5%
12.33%
3.2.6
11 -{
(8), (2) ] (1)
/ , , \] ,
{
] ]
, 4637 138772
79% ]
, 415 10611

11 2013-14 ,
\\
%
7.10%
154973.86 (9.3%) 100.00%
() \

3.2
31.03.2015 17.1%
] .18,927 ] 31.03.2014
.1,10,649
.1,29,576
7

1.
2. (2.1 2.4)
(. )
31.03.2014 31.03.2015
1882.14
1746.73 -135.41
108766.90 127829.41 19062.51
2.1
( )
20267.11
19892.22 -374.89
2.2
18238.31
22200.44 3885.46
2.3 ( )
16515.45
19846.12 3330.67
2.4
53746.03
65890.63 12221.27
(1+2)
]
110649.04 129576.14 18927.1

41293.29 44966.96 3673.67
3.2.1
8.56% -- ] \, 2015
.45507.52 (
541 ) 3,588
40% , 31.03.2015
40.71% ]
30

Table 6: Area-wise classification of Aggregate Deposits
Table 8: Priority Sector Lending (as on 31.03.2015)
(` in Crores)
Sl. Category of
No Branches
Amount 31.03.15 % to total
1 Rural
11010.83 (20.6%)
7.10%
2 Semi-Urban
24086.51 (13.6%)
15.54%
3 Urban
42083.31 (14.4%)
27.16%
4 Metro
77793.20 (4.2%)
50.20%
154973.86 (9.3%)
100.00%
5 TOTAL (1+2+3+4)
(` in Crores)
Category 2014-15
1.Priority Sector Advances (2 to 7) 45507.52
2.Agriculture (2.1 + 2.2) 20432.78
2.1 Agriculture Loans 19892.22
2.2 Eligible Investments (RIDF)
540.56
3.Micro, Small Enterprises and Micro Credit 16952.33

4.Educational Loans 1603.38
5.Housing Loans (including indirect finance) 6519.03
Note: Figures in ( ) indicate annual growth rate over the

previous year
7.Medium Enterprises
Memo items
3.2 Gross Bank Credit
I. Priority Sector Advances (% to ANBC)
40.71
For the Financial Year ended 31.03.2015, Bank registered a

growth rate of 17.1% in Gross Bank Credit over the previous
year adding Rs. 18,927 Crore during the year, to reach Rs.
1,29,576 Crore as compared to Rs.1,10,649 Crore for the
Financial Year ended 31.03.2014.
II. Agriculture Advances (% to ANBC)
18.28
3.2.1.1 Credit to Agriculture

Total agricultural lending of the bank stood at ` 20,433
Crore as at the end of March, 2015, which includes eligible
investment under RIDF & other funds of ` 541 Crore. Due
to debt waiver of farm loans in AP and Telangana, growth
of agricultural advances was muted. As against statutory
requirement of 18% of ANBC, Bank recorded 18.28% as on
31.03.2015
3.2.1.2 Lending to Self Help Groups (SHGs)
Bank has extended financial assistance to 231032 self help
groups with total exposure of ` 4,619 Crore.
3.2.2 Lending to Micro & Small Enterprises (MSE)
Total advances to micro & small enterprises of the bank was
at ` 16,950 Crores as at the end of March, 2015, registering
a y-o-y growth of 21.79%. The absolute growth during the
period is ` 3033 Crores.
3.2.3 Credit to Weaker Sections
Advances to weaker sections stood at ` 13,959 Crores i.e.,
12.49% of ANBC as against norm of 10%.
3.2.4 Credit to Minorities
Total credit extended to minority communities was at ` 5873
Crores i.e., 14.01 % of Priority Sector advances as against
norm of 15%.
3.2.5 Credit to Women
Total credit extended to women beneficiaries was at ` 13,784
Crores i.e., 12.33 % of Adjusted Net Bank Credit as against
norm of 5%.
3.2.6 Andhra Bank Rural Development Trust:
Andhra Bank Rural Development Trust is running 11 Rural
Self Employment Training Institutes in Andhra Pradesh (8),
Odisha(2), & Kerala (1) states and imparting need based
training for capacity building/entrepreneurial development
and dissemination of knowledge to farmers, SHG women,
Rural unemployed youth and artisans. Trust has celebrated
its Silver Jubilee function during this year.
Since inception,138772 candidates have been trained
through 4637 programs by the Institutes and around 79%
of the trained candidates are engaged in gainful ventures.
During the year, the institutes imparted training to 10611
candidates through 415 programs.
Table 7: Classification of Advances portfolio

(` in Crores)
Category
1. Food Credit
31.03.2014 31.03.2015 Variance

1882.14
1746.73
-135.41
2. Non-Food Credit 108766.90 127829.41 19062.51

(2.1 to 2.4)
2.1 Advances to
20267.11
19892.22
-374.89
18238.31
22200.44 3885.46
16515.45
19846.12 3330.67
53746.03
65890.63 12221.27
Agricultural Sector
(Excl. RIDF)
2.2 Advances to
MSME Sector
2.3 Retail Credit
(incl. DLs)
2.4 Large Industries
& Other Advances
GROSS BANK
110649.04 129576.14 18927.1
CREDIT (1+2)
Of which, Lending
to Priority sector
41293.29
44966.96 3673.67
3.2.1 Priority Sector Lending

Priority Sector advances of the Bank stood at ` 45507.52
Crore (including ` 541 Crore under RIDF and other funds) as
at the end of March, 2015, registering a y-o-y growth of 8.56%
and absolute increase of ` 3588 Crore. As against statutory
requirement of 40% of ANBC, Bank recorded 40.71% under
Priority Sector as on 31.03.2015.
31
,
/ 25%

- ]
]
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- , 6 , ,
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18

3.2.7
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31.03.2014 31.03.2015 (\14

-\15)

%
14311.26 17710 17794. 100.48% 3483.33 24.34%

59

18238.31 23128 22200. 95.99% 3962.13 21.72%

44
31.03.2012
4212
189.47 1232 37.86%
31.03.2013
5697
274.28 1485 44.76%
31.03.2014
10021
386.94 4324 75.89%
31.03.2015
13212
543.59 3191 40.48%
3.4
31.03.2014 14400
3103.2015 17792 -- 3392
] --
24% ]
( -) 20% - 24.34%
31.03.2014 .14029.68
31.03.2015 .16,950.15
.2920.47 ,
] 20.82%
31.03.2014 7614
9688 27% -
] 20% 525 ]
31.03.2014 2634 31.03.2015 3159

- ,
20% 6.00
]
25% ]
\, 2014 320 1831

21%
]
- , 3.00
]
( ) ]
31.03.2014 319 31.03.2015 284
31.03.2014
2.21% 31.03.2015 1.60%
01.08.2014 31.03.2015
201415
32

All our eleven RSETIs have been awarded highest rating
AA by Ministry of Rural Development, Government of India
for the year 2013-14.
As an incentive to mobilize new business, 25%

concession in processing charges / upfront fee is allowed
for all new proposals canvassed during the campaign
period.
3.2.7 Andhra Bank Kisaan Vaani
Our Bank has entered with MOU with M/s Ashok

Leyland Limited and M/s TVS Motor Company Limited
for financing of their vehicle under MSE
Bank has launched Andhra Bank Kisaan Vaani, a new

facility which provides latest technical information on
agriculture and allied activities to farmers through Green Sim
based voice message, in association with IFFCO Kisaan
Sanchar Limited .The cost of Green SIM is worked out to
Rs.4/- only and the farmers will get four voice messages on
latest technical information on agriculture and allied activities,
climatic conditions and our Bank products in the local
language for one minute duration, free of cost for a life time .
3.2.8 Financial Literacy and Credit Counseling Centres:
Bank has established Jana Chetana Financial Literacy and
Credit Counseling Trust and running six Financial Literacy
Centres in all Lead Districts. These centers are promoting
financial literacy activities through campaign mode and
providing service related extension services. All our Rural
Branches and RSETIs are organizing Financial Literacy
Camps in the villages by utilizing the services of local artists/
magicians and organizing Kala Jataras.
3.3 Credit to MSME Sector
MSME Sector is playing a crucial role in the economic
development of our country. Our Bank has been according
high priority in lending to this sector since a long time.
We have advised all our Zonal Offices / Branch to focus on

increasing the MSME advances in terms of number of units
financed and the quantum of the loans sanctioned.
To bring down the Turnaround Time (TAT), our Bank has
established SMExpress in six places i.e. at Hyderabad,
Chennai, Pune, Coimbatore, Visakhapatnam and Guntur.
It is Centralized Processing Cell for MSME proposals.
We propose to open SMExpreses at Mumbai, New Delhi,
Karimnagar and Bhubaneswar.
There are 18 Specialized MSME branches operating in the
states of Andhra Pradesh, Telangana, Orissa, Tamil Nadu,
Punjab and Chattisgarh to tap the potential business in
MSME sector.
Our performance under CGTMSE scheme:
Year
(`
Crores)
(` in Crore)
31.03.14
%of
Growth (March 14
achieveMarch 15)

ment
to
target

Actuals
31.03.15
Target
Achievement
Amount
% of
growth
Micro &
Small Enterprises
14311.26
17710
17794.59
100.48%
3483.33
24.34%
Total
MSME
18238.31
23128
22200.44
95.99%
3962.13
21.72%
No of A/cs Amount
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%
31.03.15
13212
543.59
3191
40.48%
3.4 Retail Lending

The Banks Retail Credit portfolio stood at ` 17792 Crore as
on 31.03.2015 as against ` 14400 Crore as on 31.03.2014,
with year on year growth of ` 3392 cr. The segment has
registered a growth of 24 % on YOY basis excluding Deposit
Loans and Credit Card.
Credit to Micro & Small Enterprises (Priority & Non Priority),

has grown by 24.34% against norm of 20% y-o-y growth.
Of total MSE advances, Priority Sector is `16950.15 as on
31.03.15 against `14029.68 crore as on 31.03.2014 i.e. y o
y growth in Priority Sector under MSE is ` 2920.47 crore
and equal to 20.82% of growth.
Keeping in view of the importance of MSME sector in the
economy our Bank introduced the following:
25% of assessed turnover can be allowed as working
capital credit limit under turnover method up to Rs.
6.00 crores instead of the existing 20% of the projected
turnover.
ABHIVRUDHI Scheme Financing to MSEs (Micro and
Small Enterprises) up to ` 3.00 crore against property
wherein assessment of credit limits is simplified and
obtention of CMA data is waived.
MSME Campaign was launched across the Bank
for improving MSME Portfolio from 01.08.2014 to
31.03.2015. The year 2014-15 was treated as Focus
MSME Year.
Housing loans registered an impressive growth rate of 27%

during the year and stood at ` 9688 Cr as against `7614 Cr
as on 31.03.2014.
NAGL portfolio stood at `3159 Crs as on 31.03.2015 as
against ` 2634 Cr as on 31.03.2014, registering a growth of
` 525 Crs and 20%.
Education loans portfolio stood at `1831 Crs and registered
a growth of `320 Cr from March 2014, and growth rate 21%
The Non-performing assets under Retail segment (excluding
Technically Written Off accounts) stood at ` 284 Crore as
on 31.03.2015 as against ` 319 Cr. as on 31.03.2014. The
percentage of retail credit NPA to retail credit reduced to
1.60% as on 31-03-2015 as against 2.21% as on 31.03.2014
33
3.6
25.09.2014 31.03.2015 -
, , ]

31.03.2015 ]
10 31.03.2015 ]
.
, , ,
\, , , , , , ]

, - ]

12.01.2015 31.01.2015

]
] 03.02.2015
19.02.2015 1000
] ,
12.01.2015 18.02.2015 (])

-,
01.03.2015 15.03.2015

1
2
3
4
5
6
7 ]
8 \
9. ] ( )
10. ] ]

(. )
31.03.2015
31.12.2013

% { %

{
22.00% 14062.37
15.00% 13480.11
10.00% 10730.00
10.00% 6886.14
9.00% 5681.36
10.00% 4229.00
7.00% 3634.11
6.00% 3270.64
5.00% 2770.38
5.00% 1989.50
66733.61
14889.09 (11.9%) 11.49%
18152.39 (8.7%) 14.01%
28137.74 (15.9%) 21.72%
68396.91 (21.4%) 52.79%
129576.14 (17.1%) 100.00%
{
21.50%
]- -

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]\
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. \
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9 - {
4.
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.
3.5 - {
31.03.2014 . 45356.62 2.52%

( ) 31.03.2015 .46499.43
31.03.2015 .35046.83 , ]
22.94% ] 2013-14
.3088.39 [ 2014-15 .3584.21
2013-14 .403.74 ] 2014-15
.374.07
11.84%
11.35%
9.03%
5.80%
4.78%
3.56%
3.06%
2.75%
2.33%
1.68%
11
(. )
2013-14 2014-15 (%)

1.
39932.37 42504.78
6.44%
2.
0.00
0.00
-3.
293.71
315.77
7.51%
4. \
3245.19 1966.45 -39.40%
5. /
312.23
316.79
1.46%
6.
1573.12 1395.64 -11.28%

45356.62 46499.43 2.52%
34

Initiatives taken by the Bank for improving Retail Credit
Portfolio
Bank has waived processing charges on various Retail
loan products viz., Housing Loans, Vehicle Loans, Personal
Loans and Consumer Durables during festive season from
25.09.2014 to 31.03.2015.
To boost the Retail Credit Business, Bank has opened Retail
Loan Express centers at Hyderabad, Pune, Visakhapatnam,
Chennai, Ahmedabad, Mumbai, Coimbatore, Bangalore,
Guntur, Vijayawada and New Delhi.
Bank has reduced rate of interest on Housing loans, Car
Loans and SOD against gold ornaments.
Special contests organized for mobilization of Housing LoansCampaign for festive season and Happy Homes Contest from
12.01.2015 to 31.01.2015.
In order to leverage the opportunities to penetrate into vast
housing loan market, RLE 1000 Dhamaka was launched from
03.02.2015 to 19.02.2015.
To increase NAGL business, a special contest was launched
i.e. Festival Gold Loan (NAGL) Dhamaka from 12.01.2015
to 18.02.2015.
A special contest of New Housing Loans & Vehicle loans from
01.03.2015 to 15.03.2015 was launched for Semi-urban,
Urban and Metro branches to mobilize at least two housing
loans & two vehicle loans.
3.5 Advances Industry wise Exposure
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.
3.6 Area-wise position of Gross Bank Credit

The population group wise distribution of Credit as on
31.03.2015 is as under:
Table 10: Gross Bank Credit-Population Group Wise as
on 31.03.2015
Sl.
Sl.
Industry
No
Ceilings
as % of
Total
Advances
of
previous
Quarter
Actual
exposure
as on
31.03.2015
Rural
Semi-Urban
14889.09 (11.9%)
11.49%
18152.39 (8.7%)
14.01%
3
4
Urban
28137.74 (15.9%)
21.72%
Metro
68396.91 (21.4%)
TOTAL
52.79%
129576.14 (17.1%)
100.00%
4. INVESTMENTS
In terms of RBI guidelines, the Bank is required to invest
in SLR securities to the extent of 21.50% 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
monitoring of Duration and Value-at-Risk (VAR). External
rating migration of the bonds and debentures portfolio is
also being monitored on quarterly basis.
As on 31.03.2015, the Investments (net of depreciation)
increased by 2.52% and stood at ` 46499.43 Crore, up
from ` 45356.62 Crore as on 31.03.2014. SLR maintained
as on 31.03.2015 was ` 35046.83 Crore, which constituted
22.94% of Net Demand and Time Liabilities (NDTL). Interest
income from investments increased from ` 3088.39 Crore
in 2013-14 to ` 3584.21 Crore in 2014-15. Profit on sale of
investments stood at ` 374.07 Crore during 2014-15, while
it was ` 403.74 Crore during 2013-14.
(` in Crore)
Fund ased
Amount % to total
Note: Figures in ( ) indicate annual growth rate over the

previous year
Table 9: Industry wise Exposure of Advances

Category
No.
Exposure
as % of
Total
Advances
of previous
Quarter i.e.
31.12.2014
Table 11: Classification of Investments
Power
22.00%
14062.37
11.84%
Housing Loans
15.00%
13480.11
11.35%
(` in Crores)
3.
Nbfc
10.00%
10730.00
9.03%
2013-14
Iron & Steel
10.00%
6886.14
5.80%
Textiles
9.00%
5681.36
4.78%
Construction &
Contractors
Commercial
Real Estates
Rice Mills
10.00%
4229.00
3.56%
7.00%
3634.11
3.06%
6.00%
3270.64
2.75%
Engineering
(Heavy& Light)
Diamonds Gems
& Jewellery
Total
5.00%
2770.38
2.33%
5.00%
1989.50
1.68%
7
8
9
10
1. Government
Securities
Var (%)
39932.37
42504.78
0.00
0.00
--
293.7
315.77
7.51%
4.Debentures &
Bonds
3245.19
1966.45
-39.40%
5. Subsidiaries and /
or Joint Ventures
312.23
316.79
1.46%
1573.12
1395.64
-11.28%
2. Other Approved
Securities
3. Shares
6. Others
66733.61
2014-15
6.44%
TOTAL
45356.62 46499.43
2.52%

35
2013-14 530 2014-15

[ 636 20%
4.1
4.1.1
2013-14 \- 772 2014-15

[ 941 21.89%
]

30% ]
44% ] 26%
]
.142.50
\1 { \
-
-
4.1.2.
6.
{
-
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1 = .16.8750 .556.88 )
82.50 ( .143.28 )

2014-15 17 4741

9.35% ] 500.10 - \
- ] ]
]- 7 \ 9.55% \
] 500 -1 ] ],
] -III ] [
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.31.03.2015
.329.49
4.1.3 \]
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18.07.2014 ]
2013-14

4.1.4 \] (-)
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11, 2013
4.2 ]
12.03.2015
] ] 120
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1,32,31,888 ] ,
601435% [ ] 602.85
61.0183%
52

], ] ]
] ]
] ]
] ]
2014-15 .32,947.90
- ] 31.03.2014 . 5,05,226.24
31.03.2015 . 4,83,250.08 - 31.03.2015 .4534.46

-
()
]
() , ]
, ] ,

5.
2014-15 8.59 [ 9.66

36

4.1Strategic Investments
Card usage increased from ` 530 Crore in the year
2013-14 to `636 Crore in the year 2014-15. i.e.

increase of 20%
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 India
First 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.
Merchant business turnover increased from ` 772

Crore in the year 2013-14 to ` 941 Crore in the year
2014-15. i.e. increase of 21.89%
Launched Visa Signature Credit Card to HNI

customers.
Enabled TTD online services through Bill desk.

Launched Mobile walled prepaid card with BSNL in
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 82.50 Million (book value ` 143.28
Crore), in a total subscribed capital of RM 330 Million
(approximately ` 556.88 Crore @ 1 RM = ` 16.8750 as on
31.03.2015).
Andhra Pradesh.
6. MERCHANT BANKING SERVICES
A Shareholders and Investors Grievances Cell is functioning
as a part of the Division. The Bank has received 17
complaints and 4741 requests during the Financial Year
2014-15. All the complaints and requests have been
redressed by the Bank.
The Bank has raised ` 500.10 Crores by issuance of 9.35%
- 7 years Infrastructure Bonds through private placement for
enhancing long term resources for funding infrastructure and
affordable housing projects and also raised Additional Tier-I
capital amount of Rs.500 Crores through issuance of 9.55%
Perpetual Bonds which are Basel-III compliant by way of
private placement to augment the Additional Tier-1 Capital
& overall capital of the Bank for strengthening the Capital
Adequacy as per BASEL-III requirements.
An Annual General Meeting of shareholders of the Bank was
conducted on 18.07.2014 and sought shareholders approval
for adoption of audited annual accounts of the Bank for the
FY 2013-14.
The Bank has invited the nominations for election of three
Shareholder Directors to be elected by the shareholders of
the Bank (other than the Central Government). The Bank has
received two valid nominations as against three vacancies
and hence election was not held. The contestants, whose
nominations are valid, have been declared as elected.
The Bank conducted an Extraordinary General Meeting
of shareholders of the Bank on 12.03.2015 and sought
shareholders approval on raising of capital by issuance of
equity shares by way of preferential allotment to Government
of India on infusion of ` 120 Crore by Government of India
towards share capital of the Bank. The Bank issued and
allotted 1,32,31,888 equity shares of ` 10/- each with a
premium of ` 80.69p. per share to Government of India on
preferential basis. With this infusion, the Governments stake
has increased from 60.1435% to 61.0183% of the total share
capital of ` 602.85 Crore.
The e-voting facility has been provided to the shareholders of
the Bank at the Annual General Meeting and Extra-ordinary
General Meeting.
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.
The joint venture viz. INDIA INTERNATIONAL BANK

(MALAYSIA) BHD commenced business on 11.07.2012.
The joint venture bank has a business of ` 329.49 Crore at
the end of 31.03.2015.
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. Scheme
of Amalgamation of USE with Bombay Stock Exchange is
in process.
4.1.4 Metropolitan Stock Exchange of India Ltd. (MCX
Stock Exchange Ltd.
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.
4.2 Treasury & Forex Business
The Bank is an Authorised Dealer, to deal in foreign
exchange business through 52 designated B category
branches of the Bank. The Bank has speed remittance
arrangements with Three Exchange Houses based in Gulf.
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.
During the year 2014-15, the Bank recorded a merchant
turnover of 32,947.90 Crore in Forex. The bank achieved
Inter-Bank turnover of 4,83,250.08 Crore as on 31.03.2015
compared to 5,05,226.24 Crore as on 31.03.2014. Export
finance of the Bank stood at 4534.46 crore as on 31.03.2015.
5. CREDIT CARD BUSINESS
Profit increased from Rs.8.59 Crore to ` 9.66 Crore in

2014-15.
37
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2014-15 -- 68%
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2014-15 39
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( - www.tgct.gov.in)
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2014-15 (
) .115.10 31.03.2015
.109.91 ]
.7.67 ]
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38

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.
7.4 Government Business Department

Government business during 2014-15 has witnessed a y-o-y
growth of 68 %. High technology services like CFMS, NACH,
ECOLL, BILLCOLL are offered to Government, Corporate
for bulk upload / download of their transactions. Income on
govt. Business is to a tune of rs. 9.29 cr. For the year. 817
number of branches were enabled with CBDT module. Large
govt. Corporates like SERP, NREGS, CWC, APSCSC, and
APSHC are in our fold.
8. IT INITIATIVES
Implementation of Two Factor Authentication Solution for
Internet Banking:
As part of additional security feature in Net Banking and
to overcome the problem in delay in delivery of OTP to
customer registered mobile number,2FA is implemented on
the following form factor:
Software token bundled with Out of Band Tokens(SMS/
email)
Hardware Token bundled with Out of Band Tokens(SMS/
email)
AB E-Collection Module:
An online utility bill collection module for collection of fees
and other charges.
Branch users need not capture or key in any data from
student challan as the data entered by will be validated online
with data available in institution server.
User will not have any provision to modify any details and
collect part payment other than the data populated by
institution web services.
Telangana State Commercial Taxes:
As the new State of Telangana is formed, a new website site
is formed for the Commercial Taxes Department (address
www.tgct.gov.in) from the existing APCT.
Customization has been done by the bank to separate the
both states taxes including the central pooling account.
Collection of VAT and CST for Telangana State:
Post bifurcation of AP state, commercial (VAT/CST) taxes
and Taxes to Beverages were separated and is enabled for
Telangana state through our Internet Banking for both retail
and corporate users.
NEFT Scheduler for Internet Banking Customers:
This facility is enabled for Internet Banking Retail and
corporate users.
The customers can schedule NEFT transaction for any
post date and NEFT cut off timings/National Holidays will
get automatically scheduled for the next working date and
account will be debited on schedule date making NEFT
service 24x7.
Cardless Deposits enabled in BNA:
Bank implemented Bunch Note Acceptors to enable online
cash deposit facility to our customers.
Initially we enabled cash deposit in BNA using ATM/Debit
card through which the cardholder can deposit amount in
the account linked with the card.
The ASBA facility is also available for New Fund Offers of

Mutual Funds.
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 QID bidders also
on 100% payment of application money including various
other investor categories like High Net Worth Individuals,
Corporate Investors, etc.
The Bank has handled 39 issues through ASBA facility during
the Financial Year 2014-15. Out of the same, 21 were IPOs,
13 were FPOs and 5 Rights Issue.
7. BANCASSURANCE & FEE-BASED PRODUCTS
The Bank has been constantly focusing on augmenting
non-interest 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,
Payment gateway services, Auto-Debit facilities etc.
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 IndiaFirst 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.
During the FY 2014-15, total New Business premium
(including Retail and Group business) of Rs. 115.10 Cr
was mobilized. Renewal premium of Rs. 109.91 Cr was
collected up to 31.03.2015. Bank earned commission of Rs.
7.67 Cr from sale of Life Insurance Policies.
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.
7.3 Depository Services
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.
39
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In order the increase the usage of BNA and also to extend
third party deposits, we have enabled Cardless transaction
through BNA on 13.06.2014. Using this facility, customers
can deposit cash in any account by just entering the account
number in which the amount is to be deposited.
DONATION Module:
Account Balance Inquiry on Missed Call:
Also Department has enabled Arasavilli Temple (Srikakulam

Dt.) for all branches to accept funds from interested parties
for the temple as Arasavilli Branch as nodal branch.
Department has enabled CM Relief Fund (AP Cyclone Relief)

for all branches to accept relief funds from interested parties
for Cyclone Hudhud affected districts of Andhra Pradesh as
Secretariat Branch as nodal branch.
In our constant endeavour to provide customer centric

services, our bank launched a new service which provides
the customers their account balances through SMS (a
service developed in-house).
Domestic Foreign Inward Remittances through IMPS:

To facilitate receipt of foreign inward remittances directly into
bank accounts of the beneficiaries through IMPS, our Bank
has launched domestic foreign inward remittances features.
The customer has to give a missed call to 09223011300. The

customer will receive SMS with the latest account balances
of up to three accounts.
Our Bank is enabled as beneficiary Bank and all credits

pertaining to foreign remittances in Indian currency will be
credited into customer accounts through IMPS.
AB e-Pass Book:
Our Bank has launched a new IT enabled service AB
e-Passbook, (a service developed in-house) to enable the
account holders to maintain their pass book on their Android
devices.
Sand Mining Order Payment, SERP (Govt. of AP):

Our Bank has tied up with Society for Elimination of Rural
Poverty (SERP), GoAP for collection of payments from
customers who have booked sand through SERP online
portal.
It is similar to a conventional pass book.The mobile app can

be downloaded from Google Play Store.
This facility will be available for all customers who registered
their mobile number for SMS alerts.The customer can
maintain passbook for multiple accounts and can get up to
25 entries during the selected period of 90 days.
The booked order is valid for 24 hours and the customers

have to make payment within 24hrs from the time order is
submitted.
Using this facility, chances of wrong data capture of customer
is avoided as the system accepts only those order numbers
which are provided by the Govt.
E-KYC service from UIDAI:

For implementation of e-KYC at both POS terminals and
Branches, our department developed an in-house application
with which the demographic details of a resident along with
photo image will be received from UIDAI server.
Mobile Banking registrations through Branches:

Presently, customer registration for Mobile Banking is being
done through our ATMs using ATM card authentication.
The details will be captured in the Customer master and

Account master for opening of an account.
With an objective to increase registrations and to extend

additional channel for registration, a facility for Mobile
Banking registrations through branches has been enabled.
Bank went live with this module on 28.08.2014.

USSD across 12 TSPs:
Facility to access e-filing account of Income Tax Dept.

through net banking:
Unstructured Supplementary Service Data (USSD) on

NUUP (National Unified USSD Platform) is a session based
interactive Mobile Banking, which does not require the
customer to have internet/GPRS/Mobile App or to remember
any SMS tag message to complete transaction, thereby
providing ease of use to the end customer.
Department has enabled a new facility for our retail internet

banking customers on our Internet Banking.
Through this facility, the customers, who are enrolled for
Internet Banking and whose PAN details are updated in
respective customer masters, can file their Income Tax return
using our Banks Internet Banking credentials.
This facility is available using short code *99# to GSM

subscriber across all 12 TSPs without any handset
dependencies.
Revamp of Mobile Banking Application with enhanced

features- Android/Windows/iPhone:
To avail USSD Based Mobile Banking facility customer needs

to be registered for Mobile Banking.
Our Bank has released Mobile Banking application across

various platforms such as Android, Blackberry, Symbian,
Apple iOS, Windows, Java etc.,
ATM Locator Facility:

This is an in-house developed product.
Using the new revamped smart app, Mobile Banking is

enabled for both mPAY registered and non-registered
customers.
The customer needs to send an SMS to 9223011112 along

with area PIN code to know the details of the nearest ATM.
If more than one ATM is available in that area, maximum of
three ATM details will be sent to the customer. If no ATM is
available in that area, an SMS will be sent to the customer
informing that no ATM is available in the given PIN code
location.
Where registered customers can enjoy the ease of use

without any levy of charges for activation, setting of
password, forgot password, non-registered customers can
search nearest ATM, view our Bank products etc.,
41
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42

Launching of Cash Recyclers:
Export Data Processing and Management System

(EDPMS):
This is an in-house developed solution to upload and
download the export data to RBI by Authorized Dealer.
The details of Receipt of Document, Payment Realization,
Payment Extension, Payment Write-Off/Set-Off, AD Transfer
are to be uploaded.
Risk Based Internal Audit System (RBIA):
This is an in-house developed system for internal auditors
who do Risk Based Audit for the branches.
This helps to reduce lot of paper work and also helps the
department to plan and conduct the audit in much organized
manner.
Bulk Account Opening utility:
This is an in-house developed application to open accounts
in quick manner by capturing minimum number of fields.
This application was developed and provided to branches
during launch of PMJDY scheme by GOI.
This has helped the branches to open bulk number of
accounts and reach the target of opening the accounts in a
hassle free manner.
Mandate Management System:
This is an in-house developed solution to manage the whole
mandate life cycle covering rules and guidelines set by NPCI.
The solution undertakes end to end operation of Mandate
based repetitive direct debit transactions through NACHECS.
Rajiv Vidya Mission (RVM) Sarva Shiksha Abhiyan:
Our Bank entered into an agreement with State Project
Director (SPD) Rajiv Vidya Mission (RVM) project under the
Ministry of HRD, Govt. of India for handling accounts opened
under the SSA and to act as Nodal Bank for SSA project.
Our Bank was allocated 15 districts (13 districts of AP State
+ 2 from Telangana State) covering almost 690 Mandals out
of 1123 Mandals.
For the purpose of easy reconciliation and optimum fund
utilization in the SSA accounts, a customized portal over
internet was developed in-house catering to all requirements
of the Government agency with multi-tier architecture and
workflow.
Two Cash recyclers were launched in the month of January

2015 on pilot basis.
One Cash Recycler was setup at our Gaddi Annaram branch
on 22.01.2015 and the other one was set up at our Moosapet
branch on 29.01.2015.
E-Commerce Service Provider:
Bank has integrated with two more new e-Commerce
payment gateway service providers, M/s Citrus and M/s
Payu.
These two are in addition to the existing service providers,
M/s Indiaideas.com (Billdesk) and M/s CC Avenues.
ISO Certification for Bank DC/DR/DIT:
Audit for Certification for ISO standards 27001:2013 on
Information Security Management System (ISMS) was
conducted in Banks DC/DR/DIT during November and
December, 2014.
Bank received the ISO 27001:2013 Certification for DC/DR/
DIT on 07.01.2015.
Near DR Site:
Bank established Near DR site during July 2014 to mitigate
the data loss to zero percent in the case of disaster.
Direct Benefit Transfer (DBT) Scheme:
Our bank has been participating in DBT scheme since
beginning of the scheme (01.01.2013).
Our Bank has been processing direct benefit transfer
amounts through Aadhaar Payment Bridge System (APBS)
and Automated Clearing House (ACH) of NPCI.
Our Bank processed 1,42,79,104 No. of DBT records and
credited to the beneficiaries accounts as on 31.03.2015,
which is the highest among all the banks.
Our Bank was awarded with BFSI Leadership award on
03.02.2015 for large scale implementation of DBT scheme
in the Bank.
PMJDY Account opening through E-KYC service from
UIDAI:
Our Bank developed an in-house application for
implementation of e-KYC at both bank branches and POS
terminals of BC Agents.
All the accounts can be viewed, account statements can be

generated and transactions can be searched by the users
based on their profiles.
Through this facility, the demographic details and photo

image received from UIDAI server will be captured in the
Customer and Account masters in CBS for opening of an
account instantaneously.
9. NETWORK EXPANSION
During the Financial Year 2014-15, Bank opened 395
Branches (including up-gradation of 2 Extension Counters)
and added 382 ATMs. With this, as on 31.03.2015, Bank
had 4782 Delivery Channels consisting of 2507 Branches,
8 Extension Counters, 35 Satellite Offices and 2232 ATMs
spread over 26 States and 3 Union Territories. The Bank has
49 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).
Our Bank started live operations of opening of accounts

through online e-KYC services from 28.08.2014, the day on
which PMJDY was started.
Our bank has opened 18.25 lacs of accounts under PMJDY
scheme.
Our Bank has opened 6,94,257 No. of accounts, which is the
highest among all the banks, using online E-KYC service.
43
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44

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.
Table 13: Population Group Wise classification of

Branches
Sl. No. Category
Number
% to total
1 Rural
722 28.80%
2 Semi-Urban
690 27.52%
3 Urban
691 27.56%
4 Metro

TOTAL
404 16.12%
2507
100.00%
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.
As on 31.03.2015 the Bank had 49 Specialized Branches,

as detailed hereunder:
Table 14: Specialized Branches
S.No. Category of Specialized Branches

No. of
Brs.
The Rating cell ensures comprehensive rating coverage,

integrity of rating process and proper data maintenance.
Specialized SME Branches
18
Specialized Agricultural Finance Branches
Specialized Agri - Hitech Branches
Specialized Housing Finance Branches
Specialized Personnel Banking Branches
10.1.2 Market Risk
Specialized NRI Branches
Specialized Retail Credit Branches
Corporate Finance Branches
Auto-Tech Finance Branch
10
Overseas Branch
11
Asset Recovery Management Branch
12
Small B Branch
TOTAL
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 utilizes industry reports from CRISIL and the

industry risk score service from CRISIL Research.
1
49
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.
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 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
At the end of 31.03.2015 we are having 304 branches in

Minority dominated Districts. Of the Banks total network
across the country, the percentage of Branches in minority
dominated Districts stood at 12.13 % as on 31.03.2015.
10. QUALITATIVE ASPECTS:
10.1 Risk Management
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.
45

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Bank is providing capital for Operational risk as per the Basic
Indicator Approach (BIA).
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.
10.1.5 Preparation for moving over to Advanced

Approaches
Bank is in the process of migrating to Advanced Approaches
through implementation of an Integrated Risk Management
Solution.
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.
10.1.6 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.
10.1.2 Operational Risk:
Regulatory Capital
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 and compliance of the
Operational Risk policies and reports to the Board/Risk
Management Committee [RMC].
The Bank has been computing capital charge for Operational
risk by adopting Basic Indicator Approach (BIA) as stipulated
by the RBI.
10.1.4 Approaches followed for computation of Capital
to Risk Weighted Assets Ratio (CRAR)
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.
As % to RWS
(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)]
9.0
(viii)
Minimum Total Capital Ratio

plus capital conservation
bufer [(vii)+(ii)
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.
Credit Risk: Bank at present is following the Standardized

Approach for estimation of capital requirements for Credit
Risk which also includes the HTM portfolio of Investments.
Bank is gearing itself to move over to advanced approaches
for 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.
Pillar II (Supervisory Review & Evaluation Process)

In compliance with the PillarII guidelines of the RBI under
Basel III framework, the Bank has formulated a Policy of
Internal Capital Adequacy Assessment Process (ICAAP) to
assess internal 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
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:
47
] ]

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15 -]
( )

2013-14 2014-15
]
3714.49 5857.60
]
2832.35 3424.25

689.24 2405.31
]
5857.60 6876.54
]
3342.47 3688.63
31 \ 2015 ]
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1.

1057
5.17%
2.

1139
6.00%
3.

297
1.50%
4.

4384
6.23%

6877
5.31%
* %
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2004.34
379.08

4829.16
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43.04
43.04

6876.54
3174.91
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2014-15 99 ] .5262.78
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31.03.2015 . 6,877
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2.93%
31.03.2015 ] 58.93%
. 2405
48

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.
Table 15: Position of Non-Performing Assets
Pillar III (Market Discipline)
Additions during the year
2832.35
3424.25
Reduction during the year
689.24
2405.31
5857.60
6876.54
3342.47
3688.63
(` in Crore)
2013-14
2014-15
Gross NPAs at the
3714.49
5857.60
beginning of the year
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. PillarIII (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 PillarIII Disclosures are
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-III year-end disclosures are also published
in the Banks Annual Report apart from being available on
the Banks website.
Gross NPAs at the end
10.1.7 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).
Provisions held under different classes of NPAs are as

under:
the year
Net NPAs
The segment-wise distribution of NPAs as on 31.03.2015

is as under:
Table 16: Segment-wise Non-Performing Assets
(` in Crore)
Segment
Amount
% to Total
Advances*
I. Agriculture
1057
5.17%
II. MSME
1139
6.00%
297
1.50%
IV. Large & Mid Corporate
4384
6.23%
Total
6877
5.31%
III. Retail Credit
*NPA% to Advances indicates NPA to Advances of that

segment.
Table 17: Provisions held for Non-Performing Assets

(including floating Provisions)

Nature of Asset
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.
(` in Crore)
Amount
Held
Sub-Standard Assets
2004.34
379.08
Doubtful Assets
4829.16
2752.79
43.04
43.04
6876.54
3174.91
Loss Assets
Total
The Bank is regularly calculating and monitoring the Liquidity

ratios taking as reference the RBI guidelines issued for
LCR and draft guidelines issued for NSFR. The Bank is
also calculating and monitoring the Leverage ratio on a
quarterly basis.
Provision
10.2.1 Restructuring mechanism

During FY 2014-15, 99 accounts with outstanding amount
of ` 5262.78 Crore were restructured in terms of the
restructuring packages. The total balances in restructured
accounts as at the end of March 2015 stood at ` 14365
Crore in 269 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.
10.2 Management of Asset Quality

Gross NPAs of the Bank stood at ` 6,877 Crore as on
31.03.2015. Gross NPAs as a percentage to Gross Advances
stood at 5.31% while Net NPAs as a percentage to Net
Advances stood at 2.93%. The Provision Coverage of NPAs
as on 31.03.2015 was 58.93%.
Total reduction in NPA accounts amounted to ` 2405 Crore.
49
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Credit Committees have been constituted in the Bank at
Head Office and Zonal level for exercising sanctions of
credit proposals and 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 Rs.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.
Under the new RBIA methodology we have completed the

annual inspection of 1641 branches successfully during
2014-15.
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 of 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.
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.
10.6 Legal
Legal Action under SARFAESI Act, 2002
SARFAESI Act, 2002 came to force on 21.06.2002. Bank is
utilizing this Act as an effective tool for recovery of NPA loans.
By invoking SARFAESI Act, 1071 secured assets (cumulative
from 2002) were sold by the Bank up to 31.03.2015 involving
Real Balance of Rs.1485.43 crores. During the period from
01.04.2014 to 31.03.2015 the Bank sold 113 secured assets
and recovered an amount of Rs 150.64 crores. Total recovery
affected by the Bank through invocation of SARFAESI Act in
the financial year has been Rs.420.76 Crore
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 Rs.108.20 Lakhs during the Financial Year
2014-15.
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.
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.
All Zonal Managers 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.
10.3 Management Information System
During the year 2014-15, Bank received 1176 Requests and

261 Appeals under RTI Act. All the requests and appeals
were responded and replied in time.
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.
10.7 Customer Service

DHANYAWAD Customers Meet
During the financial year 2014-15, Customers Meet
Dhanyawaad was conducted on 24.11.2014. 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 and also to
provide good customer service to the customers.
10.4 Inspection & Audit

As per the direction of the Department of Financial Services,
Ministry of Finance, Government of India and as approved
by our Banks Board, we have modified the inspection
methodology of our bank and migrated to system driven
Risk Based Internal Audit w.e.f 01.04.2014 using a software
that has been developed in-house using the expertise of
our Development Team in the Department of Information
Technology of our Bank.
10.8 Human Resources Management

During the year, several guidelines received from the
Government of India on various H.R. matters were
incorporated in HR Policy.
51
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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, 58 Specialist Officers, 234 general officers and
321 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 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.
10.8.2 Training
Bank has an Apex College with state-of-the art training
infrastructure located in the coveted IT hub of the financial
District in Hyderabad.
To improve the core capabilities of employees, various
training programmes on Credit, Leadership Development,
Product Awareness, and Soft skills development were
conducted, besides induction and Refresher programmes
for newly inducted employees.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.In Financial Year 2014-15, 359 in-house training
progarmmes/ workshops were conducted covering 9699
employees. In addition to this 129 officers were trained
in external trainings conducted at NIBM, RBI, CAB/BIRD,
IDRBT & FEDAI etc.
New Initiatives:
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
three phases.
We are the forerunners in designing and implementing
structured approach in providing theoretical knowledge at
Training centres and imparting practical exposure on the
areas trained at branches.
The main objective of the re-designing of training schedule is
to help the POs to hone their skills and apply the same
on day-to-day operations
to make them enable to accept higher responsibility and
challenges
During the training program, 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 explore the capabilities/
caliber of the officers for placing them in suitable assignments.
Succession Planning:
As a part of HR Transformation under Navsakthi Project, the
top Management formed Talent Development Committees
for Scale III and IV officers for Talent identification and
development. Under this implementation of succession plan,
to organize functional skill development program through
internal/external faculty, training will be given in three phases.
During 2014-15, the first phase of training to build product
knowledge and soft-skills, 28 Scale IV and 30 Scale III
identified officers were trained.
New Working Model
Introduction of Front Office & Back Office: Under HR
transformation, a New Working Model concept has brought
in branch work environment, which helps the front-line staff
to spend more time with customers to clear their doubts and
queries and speedy disposal of customer and reducing of
Transaction time by Back Office Staff.
In Financial Year 2014-15, apart from highlighting the concept
of new working model, exclusive 63 training programmes /
workshops for out bounds Sales team, front-line Officers of
Navasakthi branches etc., were conducted.
SWIFT (India) Program:
SWIFT India Domestic Services (P) Ltd conducted a one
day program to address domestic market needs of the
Indian financial services industry, based on proven SWIFT
technology. SWIFT India provides messaging services to
domestic market infrastructures, banks, and corporate,
enabling the financial community to exchange automated,
standardized financial information security & reliably, thereby
the members have privilege for reducing cost & risks,
improving compliances, expanding the reach of automated
standardized and secure exchange of information across
industry, enabling new instruments, opportunities & markets
for industry and improve the services of banks to provide to
their corporate customers.
Apex College has the privilege to conduct SWIFT (India)
program for the Bankers of the twin cities and 54 officers of
different Banks have participated in the workshop.
POs FROM MANIPAL ACADEMY
In association with Manipal University, our Bank has
selected 108 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 conducted weekly online tests for better
evaluation. After completion of the trainings, the students
have joined in the Bank and have undergone one week
induction programme at Apex College from 03.11.2014 to
08.11.2014. After completion of the training, the postings
for different assignments like Credit Management, Marketing
Management etc., have been done basing on the skillmapping completed at Apex College.
On-line Tests
(A) At AB APEX College: With a view to assess the progress
of learning, we introduced On-line test system at Apex
53
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Off-the Classroom Initiatives
College. This system has been made used for assessing the
knowledge on the contents/topics to be delivered during the
program by conducting
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.
(B) At Branches: Conducted weekly on-line tests for POs
on various topics/aspects while they were undergoing onthe-Board training at branches.
(C) AT BRANCHES FOR - Branch Managers/Second-line
Officers/Clerks: Conducted on-line test for all BMs/SecondLine Officers/Clerks on their functional areas and on various
deposit/credit products. During the year 2014-15, 1224
Managers, 851 Second-line Officers and 2295 clerks working
at branches have undergone the examination.
Alternative Delivery Channels
For the last two years, 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.
Conducted various exclusive three days training
programs on Usage of Alternative Delivery Channels
and its Marketing at Apex College and also at
Coimbatore and Patna Zones.
The participants were taken to various branches in
Hyderabad to educate the customers on features of
Alternative Delivery Channels to gain 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.
Exclusive Workshops at Apex College
During the year 2014-15, exclusive work-shops were
conducted by concerned departments at Head office:
Workshop for IT officers working in Zonal Computer
Centres and Administrative Departments by DIT, Head
Office
End user training program for HR Officers
Handling Disciplinary matters for HR Officers on roles
of EO & PO by HR Department
RSETI- conclave of Directors
Inspector of branches - For refreshing their knowledge
to strengthen the inspection mechanism & RBIA by
Inspection Department
On Strengthening Recovery measures and taking
Appropriate Efforts by RMD, Head Office, - for Second
line executives/CMs at Zonal Offices and all Recovery
Officers of the Bank
One day Workshop on How to make best use of
SARFAESI ACT for the benefit of Banks in Hyderabad,
in association with DRT Hyderabad
Apex College made its site within Banks portal more vibrant
with revised layout and started following off-the-classroom
initiatives through different e-publications
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
51 trainings/work-shops on areas such as KYC/AML, Credit
Management, Credit Monitoring, Recovery Management,
Clean Note Policy, and Marketing of Alternative Delivery
Channels along with pre-promotion trainings for various
cadres. From these training/workshops, 2367 employees
were trained.
10.8.3 Staff strength

Strength
% to total
Officers
10307
55.64%
Clerks
5160
27.85%
Sub Staff *
3058
16.51%
Total
18525
100.00%
* 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 3855 and 1468 respectively in total work
force of 19799 working in the Bank as on 31st March 2015.
Out of total 10304 officers, 1817 belong to SC category and
803 belong ST category. Bank has nominated a General
Manager as Chief Liaison Officer for 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.
10.8.5 Differently Abled Persons:
Our Bank is providing 3% of total vacancies arising in
Officer, Clerical and Sub-staff cadre in a year. The 3% posts
are distributed amongst 3 categories of Persons who are
differently abled i.e., Blindness or low vision (B/LV) - 1%;
Hearing Impairment (HI) - 1%; Loco Motor disability or
cerebral palsy (LM) - 1%. The representation of Persons
with Disabilities is 343 (1.73%) in total workforce of 19799
as on 31st March, 2015.
Apart from the above, AB Apex College has conducted three

workshops on Professional excellence on Marketing of
NR Business for Managers and Officers from selected
branches.
11. OFFICIAL LANGUAGE
Hindi Quarterly Progress Report Submission has been

55
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31.03.2015 24
56

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.
On-Line Quarterly 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.
An exclusive 4-page brochure was printed regarding OL
Implementation at Zonal and branch level. The same
was sent to all ZOs and branches.
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.
Official Language Implementation Committee of HO was
conducted on 19.06.2014, 26.09.2014, 30.12.2014 and
11.03.2015.
12. VIGILANCE
* During the year 2014-15, General Manager & Chief
Vigilance Officer visited some of the branches and
zonal offices and guided the staff on implementation of
various preventive vigilance measures andemphasized
on adherence to systems and procedures to ably arrest
frauds and vigilance cases.
* In the current financial year, 9699 number of employees
were enlightened on preventive vigilance aspects in
359 different training programs / sessions held at Apex
College, Hyderabad.
* Preventive Vigilance Inspections in respect of 1983
branches were conducted to monitor the branches on
implementation of guidelines and initiation of corrective
steps in implementation of systems and procedures.
* Department has published SAVDHAN, quarterly
Vigilance News Letter during the year with the gist
of important circulars on implementation of various
guidelines, conduct regulations, case laws, with the
details of irregularities fraud/vigilance cases detected
during each of the quarters.
* Vigilance Department observed Vigilance Awareness
Week from 27th October, 2014 to 1st November, 2014.
All the staff of the bank administered Pledge, as per
the guidelines of Central Vigilance Commission. Various
programs on elocution, essay writing competitions
etc., were conducted at all branches, zonal offices and
Head Office and prizes were awarded to the winning
staff members to encourage the staff on prevention of
corruptive practices.
* Vigilance Department reviewed Assets & Liabilities
statements of Officer Staff as per Central Vigilance
Commission guidelines.
* During the year under review 178 vigilance cases have
been disposed off bringing down the outstanding cases
to 24 as at the end of the year ending March 31, 2015.
* Vi g i l a n c e D e p a r t m e n t h a s i n v e s t i g a t e d i n t o
104complaints receivedduring the year and disposed

off them.
13. LEAD BANK SCHEME
Andhra Bank is the Convener Bank for State Level Bankers`
Committee, Andhra Pradesh since 1984. Consequent to reorganization of AP into Telangana & Residual Andhra Pradesh
w.e.f 2nd June, 2014, responsibility of Convenership of SLBC
of residual AP continued to be with Andhra Bank. So far 189
SLBC meetings were organized and during the current year,
SLBC has conducted 35 meetings of different nature. Besides
the above meetings, the Convener, SLBC has participated
in various meetings and Videoconferences that are being
organized by Government of India, Government of Andhra
Pradesh, RBI, NABARD and various other Organizations on
different subjects.
Andhra Bank is having Lead Bank responsibilities in six
districts, viz. Srikakulam, East Godavari, West Godavari,
Guntur in Andhra Pradesh and Ganjam, Gajapathi districts
in Odisha State. Bank is discharging all responsibilities in
implementation of Lead Bank Scheme.
Andhra Pradesh State is leading in the country with
outstanding Agricultural credit of Rs. 97,915 crores and
SHG Bank linkage of Rs.13, 844 crores extended to 7.89
lakh SHGs as at the end of December, 2014. The state is
having CD ratio of 115.95%, one of the highest in the country.
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.
As convener Bank for SLBC of Andhra Pradesh, sub
committees were constituted on Financial Inclusion, Housing
loans, Agricultural credit, Government sponsored schemes,
Lending to Minority Communities, Animal Husbandry,
RSETIs and MSME sector for focused attention.
APSLBC CALL CENTRE
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.
SLBC AP call centre was designated for receiving the
grievances in implementation of PMJDY with caller tone
of PMJDY. Accordingly staff at the call centre was given
orientation by SLBC.
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. SLBC arranged
a workshop for Trainers to train the branches to create
awareness on charge creation module. This module will be
implemented as soon as GoAP enabled access.
57
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] ](]) 28.08.2014
15.12.2014
\ 26.12.2014
26.01.2015
] ]

24.01.2015

]- ] 28.08.2014
] , \

- ] \, ] -
] 28.08.2014 ] ]
15 , 2014 26 ], 2015
30,000 -

]

58

Pavala Vaddi & Vaddi Leni Runalu Scheme of GoAP
Relocation of branches closed/shifted due to security

reasons in the past
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.
SLBC has been constantly following up with banks for

relocation of branches which were closed / shifted due to
security reasons in the past to their original place.
Road Map for Financial Inclusion in below 2000

population villages:
Financial Literacy Centres (FLCs)

The Mission Document released by the Department of
Financial Services, MoF, GoI on PMJDY clearly emphasized
that Financial Literacy would be an integral part of the Mission
in order to let the beneficiaries make best use of the financial
services being made available to them. An important aspect
of PMJDY is setting up FLCs at block level and expands
the scope of financial literacy with focus on people availing
credit from the formal financial system and coming out of the
exploitation by informal financial system. SLBC has identified
the uncovered blocks and were allotted among banks for
opening of FLCs.
SLBC has submitted the Road Map for 10731 identified

villages as advised by Reserve Bank of India in respect of
below 2000 population for 3 years period from April 2013
to March 2016. As against the target of 7,923 villages to
be covered with banking channels by March, 2015, 10,666
villages have been provided with banking channels thus
surpassing the target by 134.62% out of which banking
channels are deployed through BCAs in 10,233 villages,
Brick & Mortar Branches in 424 villages and through other
modes in 9 villages. SLBC is monitoring 100% coverage as
per RBI directive for completion of coverage of villages with
population less than 2000 by August 14, 2015 to synchronize
the same with PMJDY timelines.
14. Rural Self Employment Training Institutes in Andhra

Pradesh & Andhra Pradesh Bankers Institute of Rural
Entrepreneurship Development:
Sub Service Area Approach-Mapping of Gram Panchayats

for coverage through Branch/ BCA/ CSC
SLBC has constituted a sub-committee for strengthening

the RSETI implementation machinery and the committee
will meet once in a quarter to review the progress of RSETIs.
GoI, advised on mapping of Gram Panchayats in to Sub

Service Area (SSA) catering to 1000-1500 households in a
manner that every habitation has access to banking services
within a reasonable distance by 14th August, 2015.
Website
Accordingly, the exercise was completed in all districts and

16,843 Gram Panchayats in the state are mapped into 8,812
sub service areas as on 07.03.2015. 8,652 SSAs have been
provided with banking channels out of which BCAs in 5,829
SSAs, Brick & Mortar Branches in 2,811 SSAs and through
other modes in 12 SSAs.
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. The website is being updated at
regular intervals with the latest data and information.
15.FINANCIAL INCLUSION
Capacity building of Bank Mitras / Business

Correspondents & Business Facilitators (BM/BC/BFs)
Coverage of FI villages:
All the allotted FI villages have since been provided with
banking facility under Financial Inclusion and transactions
are in place. During 2014-15, the focus was on customer
enrollments, transactions through the CSPs, roll out of other
products in these villages. As at the end of March, 2015,
8.67 lakh FI customer accounts (AB Grama Kranthi Savings
Bank) were opened through BC. In addition to these, inward
remittance, RD and GCC products have already been
enabled for use by the FI customers.
SLBC of Andhra Pradesh has organized Train the Trainer

Programme on March 16-17, 2015 at Hyderabad to the
officers from RSETIs, FLCs and Faculty of their training
establishments. These officers will in turn conduct training to
Bank Mitras / BCs/ BFs at District level and prepare BCs for
online examination to be conducted by IIBF on monthly basis.
National Mission on Financial Inclusion Plan Pradhan
Mantri Jan Dhan Yojana (PMJDY)
PMJDY programme was launched on 28.08.2014 by Honble
Prime Minister of India. DFS advised the banks to complete
the survey for identification of uncovered families with
bank accounts by 15.12.2014 and open bank accounts by
26.12.2014 so that steps can be initiated to declare saturation
before 26.01.2015. SLBC has closely monitored and ensured
in achieving saturation in opening of at least one account for
household and the saturation certificate in this regard was
submitted to Government of India on 24.01.2015.
Honorable Prime Minister Sri Narendra Modi initiated the

National Mission on Financial Inclusion as Pradhan Mantri
Jan-Dhan Yojana and launched on 28.08.2014. In the new
concept, every house hold should have one bank account
and advised all banks to conduct Survey of House Holds in all
Service area villages and wards. These accounts should be
provided with Rupay cards which is having In-Built accidental
insurance coverage of ` 1 lakh. le Prime Minister during the
launch of PMJDY scheme on 28.08.2014 had announced a
life cover of Rs 30,000/- for the customers who have opened
their accounts during the period 15th August, 2014 to 26th
January, 2015
Unbanked Mandals
SLBC has played an active role in ensuring provision of basic
banking services in unbanked and under banked areas.
There is no unbanked mandal in the state of Andhra Pradesh.
59
()/ (\) -
(, 14 \, 15), 200
62
] ]
: 2011 ]

4439222 4439222
0
100%

2013-14 6.03 2014-15
12.63 -
/ ] \
] -

\ ]/

] ] ,
18.21
18.06

] ]
]

]
18,20,554 18,03,245 18,05,549 15,005
17,24,934

(99.05%) (99.18%)
(95.53%)
1788 ( )
, -]
] ,
] -

-
] ]
31.03.2015 ] ]
545 61.90%(11.27 )
-

6.31 ] 2015

16.
- 190.73
2014-15 - 127.00
] 1042.99
31.03.2015 915.99
\ ] , ] ( )
],

-
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- 2014-15
2
31.03.2015 4180
31.03.2015 1274

17.
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16.10.2014
, [ \
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] ,
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(2014-15) 16.10.2014 ,
{
-
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{ ]
60

duly customizing with NPCI. During the year(Nov-14 To
March-15) we have processed over 62 lakh records to the
tune of ` 200 crores through APB
Transactions through PoS devices by Bank Mitras:
There has been significant improvement in the number of
transactions through PoS devices during the year. About
12.63 lakh transactions have taken place during the year
2014-15 as against 6.03 lakh transactions during 201314. 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.
During the year about 1788 AEPS (Aadhaar Enabled
Payment System) compliant microATMs have been deployed
in the field as per the action plan. The BC agents are
undertaking 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.
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 ` 190.73 Lacs
before Income Tax and a Net Profit of 127.00 Lacs after
Income tax during the year ending 31.3.2015, with this the
negative net worth of the company has been brought down
from ` 1042.99 Lacs to ` 915.99 Lacs as on 31.03.2015.
Bank has one sponsored Regional Rural Banks namely
Chaitanya Godavari Grameena Bank located in Guntur
(Andhra Pradesh), covering the districts Guntur, East
Godavari and West Godavari.
As on 31.03.2015, the total business stood at Rs. 4180 Crore.
17. VISITS OF PARLIAMENTARY COMMITTEES
The Parliamentary Committee on the welfare of Scheduled
Castes and Scheduled Tribes headed by Shri Faggan
Singh Kulaste, Honble Chairman had undertaken a study
visit and reviewed reservation for and employment of SC/
STs in services of Andhra Bank on 16.10.2014 at Raipur,
Chhattisgarh State.
The Parliamentary Committee on the welfare of Other
Backward Classes (2014-15) headed by Shri Bandaru
Dattatreya, Honble Chairman had undertaken a study
visit and reviewed reservation in employment and welfare
measures for OBCs in Andhra Bank on 16.10.2014 at
Hyderabad.
Parliamentary Standing Committee on Labour under the
Chairmanship of Dr. Virendra Kumar, Honble Member of
Parliament, made a study visit to Hyderabad on 2nd & 3rd
January, 2015 on Deployment of Contract/ Casual workers
/ Sanitation workers for perennial nature of jobs. Our Bank
organized the study visit at Hyderabad as nodal agency.
Implementation of PRADHAN MANTRI JAN-DHAN

YOJANA - Current status:
Households covered: We have completed household
survey as per 2011 Census in all our allocated villages and
Wards. The position of coverage is of our bank is as below:
Category
No of
Households covered
No of
No of
% of
to be
covered

covered
PSB
4439222
4439222 0
100%
Accounts, Pass Books and Rupay Cards under PMJDY:

We have covered all households with bank accounts as per
Survey and opened 18.21 lac accounts. We have issued
18.06 lac Rupay Cards for above accounts
Category
Total Passbooks Rupay Cards C a r d s

No of
Issued
cards to be Activated

Accounts Issued Issued
PSB
18,20,554 18,03,245 18,05,549 15,005 17,24,934

(99.05%) (99.18%) (95.53%)
Balances in PMJDY accounts and Zero Balance

Accounts: The average balance per account opened
under PMJDY is ` 545/- as of 31.03.15. 61.90% (11.27 lac
accounts) of PMJDY accounts are with Zero Balance as of
31.03.15.
E-KYC: We have enabled account opening through e-KYC
at all our branches and Bank Mitra locations. So far more
than 6.31 lac accounts are opened through E-KYC till date
We have been the topper in opening of e-KYC accounts
among all banks till Jan-15.
Our Kaza and Vikas educational Institute branches are
received certificate of Excellence for opening of highest
number e-KYC accounts.
Interoperable AEPS and Rupay Card transactions: We
are live in Aadhaar Enabled Payment System (AEPS) on-us
and off-us and also interoperable transactions through Rupay
Card at Micro ATM. More than 2 lakh AEPS transactions are
conducted during 2014-15 at Bank Mitra locations.
NPS Swavalamban: As on 31.03.2015 we have mobilized
1274 pension applications.
Aadhaar Payment Bridge (APB)/ National Automated
Clearing House (NACH):
Aadhaar Seeding: As at the end of March, 2015 in our Bank,
over 51 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. Ours is the second
bank having seeded highest number of Aadhaar numbers
after SBI. We have allowed Aadhaar seeding through
alternate channels around 25000 duly verifying in the RASF
Aadhaar Payment Bridge: We have been participating in
APB being implemented by NPCI. On an average about
daily 60000 credits are received pertaining to LPG subsidy.
We have on-boarded the Aadhaar Payment Bridge
(APB) / National Automated Clearing House (NACH)
61
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62

19. SECURITY ARRANGEMENTS
High priority was accorded to up-grade security arrangements
at branches, currency chests and ATMs. 1812 branches and
1179 ATMs have been brought under CCTV surveillance.
Installation of CCTV system in remaining branches and
ATMs is in progress. Integrated burglar alarm system (IBAS)
has been provided to 168 vulnerable branches. Efforts are
on to enhance security measures and minimize crime rate
against our Bank.
20. NRI CELL
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. NRI Cell has revived the NRI Bulletin (AB
Connect) from September, 2013 and sending the same to
nearly 30050 NRI Customers (both existing and prospective)
through email every month.
Total NRI business of the Bank increased from `1,728
Crore as on 31.03.2014 to `2,080 Crore as on 31.03.2015,
i.e. a growth rate of 20.37%. NRE Deposits, TD NRE and
FCNR (B) deposits increased from Rs.1,499 Crore as on
31.03.2014 to Rs.1,839 Crore as on 31.03.2015 registering
an annual growth rate of 22.68%.
21. BRANDING AND COMMUNICATIONS
The department has been instrumental in designing the
visibility concepts for the Branch Transformation under
the Navshakti Project. The brand transformation at these
branches have been much appreciated by the Customers
and the Peer Banks and it is stand out among the Clutter.
The Bank has now 691 navshakti branches on 31.03.2015,
including the Banks landmark 2500th branch which was
opened on 30.03.2015.
The Department has conceptualized a created a Caller Tune
for the Bank which will be heard in all the official Telephones
and Mobiles.
The Department has conducted and event Managed
Foundation Day Celebrations on November 28 which was
a great success and also coordinated with all the Zones in
the conduction Foundation Day Celebrations.
The Department is also giving focus to Swachh Bharat
a Govt of India Initiative and have placed the logo and
communication in all Banks Calendars and Executive Diaries
as they would be given to lakhs of Customers.
CORPORATE SOCIAL RESPONSIBILITY
* Financial Assistance of `11.00 lakhs for upgrading

facilities to Dr.NTR University of Health Sciences,
Vijayawada.
* Sanctioned an amount of Rs.10.60 lakhs for Digital

X-ray Unit of Swarna Bharat Trust, Nellore.
* Sanctioned an amount of Rs.5.11 lakhs towards
equipment for modernization of Deep Freezer 40U

to Indian Red Cross Society.
* Sanctioned an amount of Rs.4.50 lakhs for providing
purified drinking water system to Home for the

Disabled, Hyderabad.
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
Andhra Bank received Best Star HR Practitioner award
instituted by Banking Frontiers for Inspiring Work Places.
24. OUTLOOK FOR 2015-16
The macroeconomic environment is expected to improve
in 2015-16, with fiscal policy gearing to an investmentled growth strategy and monetary policy using available
room for accommodation. Business conditions in Indian
manufacturing assessed in the Reserve Banks Business
Expectations Index (BEI) developed from RBIs industrial
outlook survey indicates that Q1 of 2015-16 may see some
tempering of the improvement in the second half of 2014-15.
The Reserve Banks consumer confidence survey (CCS)
points to growing consumer optimism since June 2014,
reflecting purchasing power gains arising from lower inflation
as well as improved perception of income, spending and
employment growth.
As per RBIs Survey of Professional Forecasters, GDP
growth for FY 2015-16 is expected to be 7.9% marginally
* Sanctioned an amount of Rs.50.00 lakhs for building

of Toilets at select schools in Andhra Pradesh &
Telangana.
* Sanctioned an amount of `.25.00 lakhs for ambulance

with Intensive Care Equipment to Government
Maternity Hospital, Tirupathi.
63
7.9% 2015-16 5.8% , ] ^ 6%

\ 2014-15 30%
2015-16 ] 31%
, ( )
13.03.2015 \
, ] , ]
- \ , ] 2012 ,
, \
- ]
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28.
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25.
2014-15 -
, 30.04.2014

27.04.2015
] \, -
23.09.2014
, -
18.02.2015
] 12.03.2015

] , ( )
13.03.2015 \
, ( ) 13.03.2015
\
64
,
(..])

Shri Nandlal L Sarda, Director elected from amongst
shareholders (other than Central Government) ceased to
be Director on 13.03.2015
higher than 7.5% expected for FY 2014-15. The expected

CPI inflation for 2015-16 to be around 5.8% lesser than the
6% target set under Monetary Policy Agreement. The gross
domestic saving is expected to rise to 31% of GDP in FY
2015-16 as against 30% expected for FY 2014-15.
Shri A. Krishnakumar, Director elected from amongst

shareholders (other than Central Government) joined the
Board as Director on 14.03.2015
Nevertheless, there are downside risks to growth which could

restrain growth prospects if they materialise. The ongoing
downturn in the international commodity price cycle, which
commenced in 2012, could reverse, given occasional signs
of oil prices reviving ahead of global economic activity.
In fact, the volatile geopolitical environment could even
hasten the reversal. The consequent resurgence of inflation
pressures could overwhelm the nascent conditions setting in
for recovery. Risks to budgetary forecasts from tax shortfalls,
subsidy overshoots and disinvestment under-realisation
could impact the level of budgeted allocation for capital
expenditure.
Shri G. Sivakumar, Director elected from amongst

shareholders (other than Central Government) joined the
Board as Director on 14.03.2015
27. DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors hereby states that
Early warnings on the south-west monsoon indicate that the

rainfall would be 93% of long period average due to an El
Nino effect, could dent the outlook for agriculture. Finally,
if the decline in the gross saving as percentage of Gross
National Disposable Income (GNDI) from 33 per cent in
2011-12 to 30 per cent in 2013-14 continues into the mediumterm, it could tighten the financial constraint to growth unless
productivity improves significantly.
The liquidity conditions are expected to be comfortable during
the FY 2015-16, and further easing of inflation with sustained
disinflationary momentum with stable external conditions will
allow RBI to further reduce rates by another 50 bps during
the course of the year. The REPO rate is expected to be
7.00 % by end 2016. Money supply is expected to grow at
13.5% in FY 2015-16. This along with the improvements
in the investment/ consumption demand the bank credit is
expected to grow at 14% during FY 2015-16. However, the
spread and extent of south-west monsoon, stability of rupee
shall be key factors sustaining the disinflationary momentum
and the pickup in the credit demand.
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
31.03.2015.
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.
The annual accounts have been prepared on a going

concern basis.
28. 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 during the FY 2014-15:
Shri K.K. Misra, Executive Director ceased to be Director
on 30.04.2014.
For and on behalf of the Board,
Shri Pankaj Chaturvedi, Part-Time Non-Official Director

ceased to be Director on 23.09.2014.
Place: Hyderabad
Date: 27.04.2015
Shri Nagi Reddy Venkata Ramana Reddy, Part-Time NonOfficial Director ceased to be Director on 18.02.2015.
Shri Ajit Kumar Rath assumed charge as Executive Director
on 12.03.2015.
Shri G.R. Sundaravadivel, Director elected from amongst
Shri K. Raghuraman, Director elected from amongst
65
(C.VR Rajendran)
31-03-2015 III ( III)

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

-

(/)

(/)

-21-/
//

--
-21-/
//

--
23-

23-

27-

/

() /

,

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

27-

() \/

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

(

)
66

(

)
Disclosures under Basel III Capital Regulations (Pillar III) as on 31.03.2015

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 Whether the entity Explain the

Explain the
Explain the reasons
method of
is included under
method of
reasons for if consolidated under
consolidation regulatory scope consolidation
difference in
only one of the

of consolidation

the method
scopes of

(yes/no)

of consolidation
consolidation
Subsidiary:
Andhra Bank
Yes
Financial Services
Limited/India

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
Yes
Method
AS23- Equity
Method
NA
Associate:
Chaitanya Godavari Yes
Grameena Bank/
India
NA
Joint Ventures:
India First Life
Yes
AS27-
No
NA
Regulatory
The entity is engaged
Insurance Company
Proportionate
guidelines applied in Insurance activity.
Limited/India
consolidation
to an Insurance Hence, excluded from

entity.
the regulatory scope of

consolidation in terms

of Circular no. DBOD.

No.BP BC.72/21.04.

018/2001-02 dated

February 25, 2003.
ASREC (India)
Yes
Yes
AS27-
NA
NA
Limited/India
Proportionate

consolidation
India International Yes
Yes
NA
NA
bank (Malaysia)
BHD / Malaysia
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
Total balance
of the entity
sheet equity

(as stated in the

accounting

balance sheet

of the legal entity)
% of bank's
holding in the
total equity

NIL
67
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)
) \ ] \ :
/

, ,
/

]

\

/
()

/

() \/

(
)
(41.60)
( )

(
)
320.06
1867.13
34778.60
1303.85
1928.53
5615.66
8294.42
) ]- , ] - ]

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

(
/

)

3,574.62
30%
/

( )

]

]

]
]

\) ] -
- 2 ]
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]
-II -III ] .
-II -III ] [\ . ]
] ( ) / ] ] .
4-5 ] ] ] ] \ ] ]
.
] ] ] \
]
68

(ii) Quantitative Disclosures:
c. List of group entities considered for consolidation:
(`. in Million)
Name of the entity / country Principle activity of the entity
of incorporation

Total balance Sheet equity (as

Total balance sheet assets ( as
stated in the accounting balance stated in the accounting balance
sheet of the legal entity)
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.
(41.60)
320.06
Chaitanya Godavari
Grameena Bank/India
Banking
1867.13
34778.60
ASREC (India) Limited/India

Securitisation and Reconstruction

of Financial Assets
1303.85
1928.53
India International bank

(Malaysia) BHD / Malaysia
Banking
5615.66
8294.42
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:
(` in Million)
Name of the subsidiaries/ Principle activity of Total Balance Sheet equity (as
country of incorporation the entity
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

India First Life Insurance Insurance Business 3,574.62

30%
Company Limited/India

Quantitative impact on
regulatory capital of
using risk weighting
method versus using
the full deduction method
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
Qualitative disclosures:
(a) 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.
69

) ] ]
l
l ]

) ] ] ]

-
l ] ]
l ] ( )
l ]

) \ ] ]

- \

- ( )

) ] ()
l -
l - I (%)
l (%)

]
l - (%)
l - I (%)
l (%)

] ,

- I
. 31.03.2015
(. )
10009.93
373.66
1.35
80.73
722.85
7.49%
7.99%
10.63%
7.55%
8.05%
10.70%
NA
- 3

) ] ] ( ] ) :
, ] , ] ] . ] ()
, ]
i) ] ] / 90 ] ,

ii) / ( / ) * ] ] .

iii) ] 90 ] .

iv) ] ] ]

v) ] ] ] .

vi) 1, 2006 - \ 90
]

vii) , ]
90
] , ] 90 ]

- ]
i. ] /

ii. \ ] / , 90 ]

iii. ] ]
70

Quantitative disclosures:
` in Crore

Items
Amount as on 31.03.2015
(b) Capital requirements for credit risk
l Portfolios subject to standardized approach

l Securitisation exposures

10009.93
NIL
(c) Capital requirements for market risk
l Standardized duration approach

l Interest rate risk
373.66
l Foreign exchange risk (including gold)
1.35
l Equity position risk

80.73
(d) Capital requirements for operational risk:
l Basic Indicator Approach
722.85
l The Standardised Approach (if applicable)

NIL
(e) Capital Adequacy Ratios (solo)
l Common Equity Tier I
7.49%
l Tier 1 CRAR (%)
7.99%
l Total CRAR (%)
10.63%
Capital Adequacy Ratios for the consolidated Position
l Common Equity Tier I
7.55%
l Tier 1 CRAR (%)
8.05%
l Total CRAR (%)
10.70%
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 atleast the interest debited during the same period.
71
-
, , , -
- ]
- ] \ , \ \
] ] ( 3 ) ]
- ] ] 90
]
- / ] 180 / / ]
]

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

]
\ , ] ]
\ , , \
, ], \ ]
] ] , , ]
]
/ ] \ ]
;
] \
];
/ ] ;
] ] .
] ] .
] \, / , , -

] ] ] .
[ II .
] .
1. ] [
2.
3. / ] ] ]
4. ] \ ]
5. ] \ ()

6. ]
72

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 not older than 3 months. In case Drawings allowed against Stock statements and/or Book debts
statements of more than three months old are treated as irregular drawings and accounts where such irregular
drawings are allowed for a continuous period of 90 days are to be treated as NPA.

- 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/ adhoc credit limits have not been reviewed/ renewed within 180 days from the due
date/ date of adhoc 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.
73
] \
] \
-
- ]
- ] ()
- - ] ( ] ) -
- ] , ]
]
] , , , ] {
] ] \ , , , , , ,
] ] ], , , { -
] ] ]/ ]
, , \, ],
] , , , , , ]
, ] , , , / ,

) ]

( )

31.03.2015

129576.14

17580.89
) , ] .
) ]
31.03.2015 () { {:
31.12.2014 ( ) .118762.96
.

1
2
3

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
10688.67
11876.30
26127.85
2375.26
5938.15
11876.30
3562.89
5938.15
7125.78
5938.15
5938.15
2375.26
5938.15
1187.63
74
31.03.2015

]
5681.36
1753.17
14062.37
898.61
2770.38
10730.00
1301.91
1989.50
3270.64
1590.94
1922.89
776.00
1020.68
224.34
( )

31.12.2014

4.78
1.48
11.84
0.76
2.33
9.03
1.10
1.68
2.75
1.34
1.62
0.65
0.86
0.19

Structure and organization 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 31.03.2015

Fund Based
129576.14
Non Fund Based
17580.89
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 31.03.2015
TOTAL ADVANCES AS ON 31.12.2014 (PREVIOUS QUARTER), ` 118762.96 Cr
(` 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
31.03.2015
previous quarter i.e.

31.12.2014
1
TEXTILES
9.00
10688.67
2
3

a)Renewable Energy
ENGINEERING (HEAVY&LIGHT)
NBFC
5681.36
4.78
PETROLEUM PRODUCTS
10.00
11876.30
1753.17
1.48
POWER
22.00
26127.85
14062.37
11.84
2.00
2375.26
898.61
0.76
5.00
5938.15
2770.38
2.33
10.00
11876.30
10730.00
9.03
a) NBFC of which against GOLD collaterals
3.00
3562.89
1301.91
1.10
DIAMONDS GEMS & JEWELLERY
5.00
5938.15
1989.50
1.68
RICE MILLS
6.00
7125.78
3270.64
2.75
SUGAR
5.00
5938.15
1590.94
1.34
DRUGS & PHARMACEUTICALS
5.00
5938.15
1922.89
1.62
10 TOBACCO
2.00
2375.26
776.00
0.65
11 CEMENT & CEMENT PRODUCTS
5.00
5938.15
1020.68
0.86
12 DISTILLERIES
1.00
1187.63
224.34
0.19
75
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
11876.30
6886.14

10.00
11876.30
4229.00

1.50
1781.44
194.76

3.00
3562.89
697.86

3.00
3562.89
1092.23

2.00
2375.26
664.42
]
7.00
8313.41
3634.38

15.00
17814.44
13480.11
31.03.2015 (-) { :
31.12.2014( ) - .26648.80

]
] ( )

,]

\
]

]

]
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
( )

31.03.2015

31.12.2014

] %

1065.95
266.49
2798.12
3197.86
1332.44
799.46
532.98
1065.95
1598.93
133.24
532.98
133.24
3730.83
13324.40
266.49
399.73
399.73
532.98
532.98
907.76
23.26
2189.75
1526.50
377.00
28.31
98.76
293.14
912.26
22.75
174.72
61.81
2320.59
6062.11
48.85
194.85
20.80
45.30
118.27
0 1

2 7

8 14

15 28

29 3

3 6

6 1

1 3

3 5

5

()
419.30
21.86
1455.21
632.27
1672.28
2.00
1901.00
158.88
12151.85
3144.78
7263.36
1652.99
13597.12
315.98
52052.84
5468.28
14194.11
5702.20
21247.66
29619.41
125954.73 46718.65
76
5.80
3.56
0.16
0.59
0.92
0.56
3.06
11.35
3.41
0.09
8.22
5.73
1.41
0.11
0.37
1.10
3.42
0.09
0.66
0.23
8.71
22.75
0.18
0.73
0.08
0.17
0.44
( )

364.72
67.24
98.21
147.18
628.37
860.53
0.00
0.00
0.00
0.00
2166.26
13 IRON & STEEL
10.00
11876.30
6886.14
5.80
14 CONSTRUCTION & CONTRACTORS
10.00
11876.30
4229.00
3.56
15 SOFTWARE
1.50
1781.44
194.76
0.16
16 HOSPITALS
3.00
3562.89
697.86
0.59
17 HOTELS
3.00
3562.89
1092.23
0.92
18 EDUCATIONAL INSTITUTIONS
2.00
2375.26
664.42
0.56
19 COMMERCIAL REAL ESTATES
7.00
8313.41
3634.38
3.06
15.00
17814.44
13480.11
11.35
20 HOUSING LOANS
INDUSTRY WISE INTERNAL (NON-FUNDED) EXPOSURE CEILINGS AND EXPOSURE AS ON 31.03.2015

TOTAL NON-FUNDED Limits AS ON 31.12.2014 (PREVIOUS QUARTER), Rs.26648.80 Cr.
(` in Cr.)

Sl.
No

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Industry

Ceilings as % of
Non Fund Limits
of previous quarter

TEXTILES
PETROLEUM PRODUCTS
POWER
ENGINEERING (HEAVY&LIGHT)
NBFC
DIAMONDS GEMS & JEWELLERY
RICE MILLS
SUGAR
DRUGS & PHARMACEUTICALS
TOBACCO
CEMENT & CEMENT PRODUCTS
DISTILLERIES
IRON & STEEL
CONSTRUCTION & CONTRACTORS
SOFTWARE
HOSPITALS
HOTELS
EDUCATIONAL INSTITUTIONS
COMMERCIAL REAL ESTATES
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
Ceiling amount on Actual Non Fund

Non Fund Limits
based exposure
of previous quarter as on 31.03.2015

1065.95
266.49
2798.12
3197.86
1332.44
799.46
532.98
1065.95
1598.93
133.24
532.98
133.24
3730.83
13324.40
266.49
399.73
399.73
532.98
532.98
907.76
23.26
2189.75
1526.50
377.00
28.31
98.76
293.14
912.26
22.75
174.72
61.81
2320.59
6062.11
48.85
194.85
20.80
45.30
118.27
Exposure as % of
Non Fund Limits of
Previous Quarter
i.e. 31.12.2014
3.41
0.09
8.22
5.73
1.41
0.11
0.37
1.10
3.42
0.09
0.66
0.23
8.71
22.75
0.18
0.73
0.08
0.17
0.44
e) 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
Advances (Net)
419.30
1455.21
1672.28
1901.00
12151.85
7263.36
13597.12
52052.84
14194.11
21247.66
125954.73
77
Investments
21.86
632.27
2.00
158.88
3144.78
1652.99
315.98
5468.28
5702.20
29619.41
46718.65
(` in Cr.)
Foreign Currency Assets
364.72
67.24
98.21
147.18
628.37
860.53
0.00
0.00
0.00
0.00
2166.26
\) ()
( )

31.03.2015

2004.34
-1
1377.23
-2
3308.95
-3
142.98

43.04
6876.54
( )

31.03.2015

])
3688.63
31.03.2015
5.31
2.93

(%)

(%)

^) () ( )

31.03.2015

()
5857.60

() ]
3424.25

()
2405.31

()
6876.54
)
( )

()

()

()

()

()
) ] .156.76
) ] - .125.90
)
()
()
()
()
(.)
78
31.03.2015
2515.13
1745.98
1073.20
0.00
3187.91
( )
31.03.2015
282.66
76.30
0.00
139.74
219.22

f) Amount of NPAs (Gross):

(` in Cr.)

CATEGORY AMOUNT

As on 31.03.2015

Sub-Std 2004.34
Doubtful-1 1377.23
Doubtful-2 3308.95
Doubtful-3 142.98
Loss
Total 6876.54
43.04
g) Net NPAs:

(` in Cr.)
31.03.2015

Net NPAs
3688.63
h) NPA Ratios:

31.03.2015
Gross NPA to Gross Advances (%)
5.31
Net NPA to Net Advances (%)
2.93
i) Movement of NPAs (Gross):

(` in Cr.)
Movement of NPAs (Gross)
(a) Opening Balance
(b) Additions during the year
3424.25
(c) Reductions during the year
2405.31
(d) Closing Balance
6876.54
31.03.2015
5857.60
j) Movement of Provision for NPAs:

(` in Cr.)

Movement of Specific Provisions for NPAs

(a) Opening Balance

(b) Provisions made during the year

(c) Write-off

(d) Write-back of excess provisions

(e) Closing Balance
k) Amount of Non-Performing Investments : ` 156.76 cr
l) Amount of provisions held for Non-Performing Investments : ` 125.90 cr
m) Movement of provisions for depreciation on Investments:

(a) Opening Balance
31.03.2015
2515.13
1745.98
1073.20
0.00
3187.91
(` in Cr.)
31.03.2015
282.66
(b) Provisions made during the period
76.30
(c) Write off
(d) Write back of excess provisions
139.74
(e) Closing Balance
219.22
0.00
79
- 4 ] , ]

() ]

l ()
l \ ()
l \
l
l
l - ..
] ] ]

l ] ( , )
] ] .
l ] .
l ] , ] ] .
l ] {
] \ . ,
] .
l ] ]/ \ , ]
i. \ , ] ] , \\ ]
] .

ii. \ , ] ] ,
] \\ ] ] .
]
.

) ] ]

( )
( )
31.03.2015

51188.76
3640.04
43884.31
9703.32
22213.22
2667.10
12289.85
1570.43
129576.14 17580.89

100% ]
100% ]
100% ] ]

- 5 ]

]
) , ,
] ] / ] .

.
80

Table DF-4 - Credit Risk: Disclosures for Portfolios Subject to the Standardised Approach
Qualitative Disclosures:
(a) For portfolios under the standardized approach: Name of the Credit Rating agencies approved by Reserve Bank
of India and used by the Bank:

l
Credit Rating Information Services India Limited (CRISIL)

l
Credit Analysis and Research Limited (CARE)

l
India Ratings and Research Private Limited

l
ICRA Limited

l
SMERA Ratings Limited

l
Brick Work Ratings India Private Limited
Types of exposure for which each agency is used:
l
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.

l
For domestic cash credit, overdraft and for term loan exposures of over 1 year, Long Term Rating is used.

l
The Bank uses only publicly available solicited ratings that are valid and reviewed by the recognized ECAIs.

l
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.

l
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.)

31.03.2015
Fund Based
Non Fund Based
Below 100% risk weight
51188.76
3640.04
100% risk weight
43884.31
9703.32
More than 100% risk weight
22213.22
2667.10
Deducted (Mitigants)
12289.85
1570.43
Total
129576.14 17580.89
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 is in place.
81
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i)

7510.50

ii) ]

6309.80

iii)

36.52

iv) \ .
3.46

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6245.34
]
- 6
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l ] ] ] .

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82

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.
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. P
lant & 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:
Particulars
a. Total exposure covered by eligible financial collateral after

application of haircuts. Of which :
(` in Cr.)
Amount
i) Gold
7510.50
ii) Bank Deposits
6309.80
iii) Insurance Policies
iv) NSCs / KVPs etc.
b. Total exposure covered by guarantees

Total exposure covered by credit derivatives
36.52
3.46
6245.34
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 are
l
to 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.

l
to ensure that the banks NII is protected from the volatilities in the market related factors

l
to improve the sophistication levels of the risk management systems pertaining to Market Risk; and

l
to prepare the bank for adoption of the advanced methods of capital computation to ensure optimum utilization
of the capital sources.
83
] ] \
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] ] , ]
-

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] ] ] ,
.
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1. (\) ()
)
( )
] ] ]
31.03.2015
] ]
] ( )
373.66
80.73
1.35
84

Structure and organisation of the Market Risk Management function:
Market Risk Management structure of the Bank is as under
Board 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.
Bank has a Board approved Integrated (Investments & Forex) Policy which covers Market Risk Management, Country Risk
Management and Counterparty Bank Risk Management. Bank has in place Hedging Policy for management of unhedged
foreign currency exposures of the counterparties of the Bank. The Integrated Risk Management Policy, which is also
approved by the Board covers the Liquidity Management, Asset Liability Management and monitoring of adherence to various
regulatory and internal risk limits. The policies provide the framework for risk assessment, identification, measurement &
mitigation, risk limits & triggers, risk monitoring and reporting.
As part of Liquidity risk management Bank has various guidelines in place to ensure that the liquidity position is comfortable
during times of stress. A Contingency Funding Plan is also put in place.
Portfolios covered by the Standardised 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
Standardized duration approach
Interest rate risk
373.66
Equity position risk
80.73
Foreign exchange risk (including gold)

85
1.35
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86

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.

To facilitate the bank moving over to Advanced Methodology for calculation of capital
Structure and organization of 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, Head Office (Chief Risk Executive)

Operational Risk Management Cell (IRMD),Head Office
Scope and nature of risk reporting and measurement systems:
Operational Risk Management is an important component of sound risk management. 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 (BIA) 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)
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.
87

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88

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 relevant 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.
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 minimize the liquidity and interest rate risks.
The nature of Interest rate risk in banking book and key assumptions including assumptions regarding loan
prepayments and behaviour of non-maturity deposits and Frequency of IRRBB measurement.
IRRBB is calculated every month as on the last day of each month. IRRBB is calculated from Economic value perspective
(Modified duration gap method) & Earnings perspective (Traditional gap analysis method).
Following are the Methodology followed & Assumptions made for calculating IRRBB - Economic value perspective.
l
All rate sensitive assets and liabilities are distributed into 10 time buckets, based on the residual maturity/repricing
date.
Assets, liabilities and off balance sheet items are grouped under the broad heads viz., Deposits, Borrowings, Other
liabilities, Provisions, Balance with other banks, Investments (HTM), Advances & Non performing assets.
Bucket-wise cash flows for each item/category of asset/liability/off balance sheet item are arrived at.
The mid-point of each time bucket is taken as proxy duration for the maturity of all assets and liabilities in the
respective time bucket
Modified duration of each category of asset/liability/off balance sheet item is calculated using the maturity date,
coupon, yield and interest frequency.
Weighted average modified duration of all the assets (DA) and all the liabilities (DL) is calculated including the off
balance sheet items.
Assumptions :
Entire overdue deposits are placed in 1-28 days time bucket.
Entire Current account deposits and Saving account deposits are bucketed as per behavioral studies.
Demand and Term Loans are distributed into various buckets based on the behavioral pattern of prepayments as per banks
behavioral studies instead of the original maturity. Domestic Retail Term Deposits are distributed as per behavioral studies.
Following is the Methodology followed / Assumptions made for calculating IRRBB - Earnings perspective.

Rate Sensitive Assets (RSA) and Rate Sensitive Liabilities (RSL) upto one year are considered for calculation
of IRR from earnings perspective.
l Bank
is preparing interest rate sensitivity statement on Monthly basis, duly taking into consideration the
various behavioral studies as envisaged in RBI guidelines as part of ALM process.
89

l
\ ]

l
]

l
] ] ]

l
() ]
() :
] ]
(. )

33.74
67.47
101.21
134.95
]
0.25%
0.50%
0.75%
1.00%

200 ({ )
.. 417.38
--10: ] {

] () ]
, , \, ] \
]
{ ] \
:

90

Rate sensitive assets and Rate sensitive liabilities upto one year are taken to arrive at the gap.
Rate sensitive liabilities are reduced from Rate sensitive assets to arrive at the rate sensitive gap.
The rate sensitive gap is multiplied by assumed interest rate changes to arrive at the interest rate shock.
A uniform shift (parallel) in yield curve across all the maturity buckets is assumed.

EARNINGS AT RISK
(` in cr.)

Change in interest rate
Re-pricing up to 1 year
0.25% 33.74
0.50% 67.47
0.75% 101.21
1.00% 134.95
ECONOMIC VALUE OF EQUITY
For a 200 bps rate shock the drop in equity value (including reserves)
` 417.38 Crore
Table DF-10: General Disclosure for Exposures Related to Counterparty Credit Risk

Counterparty Credit Risk (CCR) Limits for the banking counterparties are assessed based on an internal model
that considers the parameters viz. net worth of the counterparties, asset quality, liquidity, credit rating net worth of
the Bank and business requirements.
CCR limits are set on the amount and tenor while fixing the limits to respective counterparties.
Capital for CCR exposure is assessed based on Standardized Approach.


The Bank does not have any credit derivatives exposure at present
91
-11: ] \

( )
-11 : ] \ - lll .

I ]:
1 ] ( )
26,580.00
+
2 ]
917.29
-
3 \ ( )
66,659.61
+ +]+\
4 1 ] ( -]
)
-

] ] ] 1 ] 2018

5 ]
( 1 )
-

6 ] I ]
94,156.90
-
I ]: ]
7 ]
-

8 ( )
17.40
11.60 60%
9 \ ( )
215.76
143.84 60%
10
-

11 \
-

12
-

13
-

14 \ ]
-

15
-

16 ( - ]
)
144.49
96.33
17 -
60.00
40.00
18 ,
] , , ]
] 10% (10% )
-

19 ,
, , ]
] 10% (10% )
-

20 (10% )

21 (10%
, )

22 15%

23 ]

24 ] :

25 ] :

26 ] (26+26+26+26)
-

26 ] : ]
-

26 ] : - ]
-

26 ] : ] , ]

92

Table DF-11: Composition of Capital
(` in Million)

DF-11 : COMPOSITION OF CAPITAL

Common Equity Tier 1 capital: instruments and reserves

Directly issued qualifying common share capital plus related stock surplus
(share premium)
26,580.00

Retained earnings
917.29

Accumulated other comprehensive income (and other reserves)
66,659.61

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
-

Common share capital issued by subsidiaries and held by third parties
(amount allowed in group CET1)
-

Common Equity Tier 1 capital before regulatory adjustments
94,156.90 -
Common Equity Tier 1 capital: regulatory adjustments
Prudential valuation adjustments
-

Goodwill (net of related tax liability)
17.40
11.60
Intangibles other than mortgage-servicing rights (net of related tax liability) 215.76
143.84
Deferred tax assets
-

Cash-flow hedge reserve
-

Shortfall of provisions to expected losses
-

Securitisation gain on sale
-

Gains and losses due to changes in own credit risk on fair valued liabilities
-

Defined-benefit pension fund net assets
-
-
Investments in own shares (if not already netted off paid-in capital on
reported balance sheet)
144.49
96.33
Reciprocal cross-holdings in common equity
60.00
40.00
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)
-

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)
-

Mortgage servicing rights (amount above 10% threshold)
NA

Deferred tax assets arising from temporary differences (amount above
10% threshold, net of related tax liability)
NA

Amount exceeding the 15% threshold
NA

of which: significant investments in the common stock of financial entities
NA

of which: mortgage servicing rights
NA

of which: deferred tax assets arising from temporary differences
NA

National specific regulatory adjustments(26a+26b+26c+26d)

of which: Investments in the equity capital of the unconsolidated insurance
subsidiaries
-

of which: Investments in the equity capital of unconsolidated non-financial
subsidiaries
-

of which: Shortfall in the equity capital of majority owned financial entities
which have not been consolidated with the bank
-

2
3
4

5
6

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

22
23
24
25
26
26a
26b
26c
Amounts subject to

Pre-Basel lll

Treatment
93
Ref No
a+b
c-d
e+f+g+h
60% of v
60% of u
Part of t
Part of q
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)
94
-
-
437.65
93,719.25
-
5000.00
-
5000.00

1400.00
-

-

6,400.00
-
155.44
-
-
155.44
-
-
155.44

( +) 40%
155.44
6,244.56
6,244.56
99,963.81
26d of which: Unamortised pension funds expenditures
Regulatory Adjustments Applied to Common Equity Tier 1 in respect

of Amounts Subject to Pre-Basel III Treatment
of which: [INSERT TYPE OF ADJUSTMENT]
27 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
29
Common Equity Tier 1 capital (CET1)
Additional Tier 1 capital: instruments
437.65
93,719.25
30 Directly issued qualifying Additional Tier 1 instruments plus related stock

surplus (31+32)
5000.00
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)
5000.00
Part of k
33 Directly issued capital instruments subject to phase out from Additional Tier 1
1400.00
Part of k
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

6,400.00
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)
155.44
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
of which: e.g. DTAs
of which: e.g. existing adjustments which are deducted from Tier 1 at 50%
of which: - Goodwill and Intangible assets
155.44
-
-
155.44
42 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)
44a Additional Tier 1 capital reckoned for capital adequacy
45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44a)
95
155.44
6,244.56
6,244.56
99,963.81
40% of (u+v)
3 ]
46 2
47 2 ]
18,620.00
48 2 ( 1 1 ] 5 34
) ] ( 2
)
49 ] : ]
50
14,338.50 ++((+
])*45%)
51 ] 2 ]

32,958.50 -
2 ]: ]
52 2
53 2 -
122.37

81.58
54 , ]
, , ] ]
0% (10% )
55 ,
( )
56 ] (56+56)
56 ] : 2 ]
56 ] :
2 ] , ]

III
2 ]
] : ] ] - 2 50%
]
57 2 ] ]
122.37
58 2 ] (2)
32,836.13
58 ] 2 ]
32,836.13
58 ] 1 ]
58 ] 2 ] (58 + 58)
32,836.13
59 ] ( = 1 + 2) (45 + 58)
132,799.94
60 ] (60 + 60 + 60)
1241354.98
60 ] : ]
1109675.01
60 ] : ] ]
51363.27
60 ] : \ ]
80316.70
61 1 (] )
7.55%
62 1 (] )
8.05%
63 ] (] )
10.70%
96
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
-
m+n+((i+j)*45%)
32,958.50
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments
53 Reciprocal cross-holdings in Tier 2 instruments
122.37

81.58
Part of r
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)
55 Significant investments tin the capital banking, financial and insurance

entities that are outside the scope of regulatory consolidation (net of
eligible short positions)
56 National specific regulatory adjustments (56a+56b)
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
14,338.50
51 Tier 2 capital before regulatory adjustments

-
18,620.00
57 Total regulatory adjustments to Tier 2 capital
122.37
58 Tier 2 capital (T2)
32,836.13
32,836.13
58b Excess Additional Tier 1 capital reckoned as Tier 2 capital
58c Total Tier 2 capital admissible for capital adequacy (58a + 58b)
32,836.13
59 Total capital (TC = T1 + T2) (45 + 58c)
132,799.94
60 Total risk weighted assets (60a + 60b + 60c)
1,241,354.98
60a of which: total credit risk weighted assets
1,109,675.01
60b of which: total market risk weighted assets
51,363.27
60c of which: total operational risk weighted assets
80,316.70
58a Tier 2 capital reckoned for capital adequacy
Capital ratios
61
Common Equity Tier 1 (as a percentage of risk weighted assets)
7.55%
62
Tier 1 (as a percentage of risk weighted assets)
8.05%
10.70%
63 Total capital (as a percentage of risk weighted assets)

97
64 ( 1 ]
\ ,] )
65 ] : ]
66 ] \
67 ] : ]-
68 1
(] )

( III )
69 1 ( III )
70 1 ( III )
71 ] ( III )
(] )
72
73
74
75

76
] -

( )
( )
2
\ 2
( )
77 \ 2
78 \ 2
( )
79 \ 2
5.50%
0
0
0
2.05%
5.50%
7.00%
9.00%
2826.91
1425.00

11126.42
13870.94

( )

\
0

10
(\ )

10
0

] 10% \ ] ,

]
0

] : 1 ]
0

] : 1 ]
0

] : 2 ]
0

- ] ]

0

26 (i) 1 ]
0

(ii)]
0

1 ] ] ] ] ( 44

1 ] 44 1 ] )
0
0
44 ] 1 ] ] 58 2 ] \

2 ]
11,126.42

2 ]
3,212.08

50
50
14,338.50

58 ] 2 ] ( 58

2 ] 58 2 )
98
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
66 of which: bank specific countercyclical buffer requirement
67 of which: G-SIB buffer requirement
2.05%
69 National Common Equity Tier 1 minimum ratio (if different from

Basel III minimum)
5.50%
70 National Tier 1 minimum ratio (if different from Basel III minimum)
7.00%
71 National total capital minimum ratio (if different from Basel III minimum)
9.00%
72 Non-significant investments in the capital of other financial entities
2,826.91
Part of q & r
73 Significant investments in the common stock of financial entities
Part of s
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk

weighted assets)

5.50%
National minima (if different from Basel III)
Amounts below the thresholds for deduction (before risk weighting)

1,425.00
74 Mortgage servicing rights (net of related tax liability)
NA
75 Deferred tax assets arising from temporary differences (net of related tax liability)
NIL
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to

standardised approach (prior to application of cap)
11,126.42
77 Cap on inclusion of provisions in Tier 2 under standardised approach
13,870.94
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
Applicable caps on the inclusion of provisions in Tier 2
Notes to the Template

Row No. of
the template Particulars
(` in million)
Deferred tax assets associated with accumulated losses
Deferred tax assets (excluding those associated with accumulated losses) net of Deferred tax liability
0
0
10
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
19
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
26b
(ii) Increase in risk weighted assets

44a
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

58a

Total of row 50
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)
0
11,126.42
3,212.08
99
14,338.50
0
-12 :] \-
( )

-12 :] \-

-
\-1
31-03-2015
31-03-2015

]
i
]
6,028.47
6,028.47

94,913.76
95,266.37

-

]
100,942.23
101,294.84
ii
]
1,550,514.08
1,550,514.08

] : ]
383.85
383.85

] : ]
1,344,402.00
1,344,402.00

] : ] (] )
205,728.23
205,728.23
iii
153,193.18
153,193.18

] : {
66,500.00
66,500.00

]
1,719.38
1,719.38

] ]
22,398.80
22,398.80

] ( )-
29,375.00
29,375.00

] ]
33,200.00
33,200.00
iv

72,081.03
48,305.14

1,876,730.52
1,853,307.24

i
{
75,178.70
75,177.44

\
4,572.79
3,276.67
ii

485,647.85
464,358.56

]
433,145.84
425,138.61

]
2,001.92

]
8,248.84
3,157.70

] \
21,017.93
19,664.51

] / /
653.49
2,078.49

] (] , \ )
20,579.83
14,319.25
iii

]

]
iv
\
12,746.68
12,707.80
v

38,774.55
38,000.38

]
-

]
-
vi

29.00
29.00
vii
-

1,876,730.52
1,853,307.24
100

Table DF-12 : Composition of Capital - Reconciliation Requirements
(` in million)

DF-12- Composition of Capital-

Reconciliation Requirements

Step-1
A
Capital & Liabilities
Paid-up Capital
Reserves & Surplus
Minority Interest
Total Capital
ii
Deposits
of which: Deposits from banks
of which: Customer deposits
of which: Other deposits (Certificate of Deposit)
Balance sheet as in
financial statements

Balance sheet
under regulatory scope of
consolidation
As on 31-03-2015
As on 31-03-2015
6,028.47
6,028.47
94,913.76
95,266.37
100,942.23
101,294.84
1,550,514.08
1,550,514.08
383.85
383.85
1,344,402.00
1,344,402.00
205,728.23
205,728.23
153,193.18
153,193.18
66,500.00
66,500.00
1,719.38
1,719.38
iii
Borrowings
of which: From RBI
of which: From banks
of which: From other institutions & agencies
22,398.80
22,398.80
of which: Others (pl specify)- Outside India Line of Credit
29,375.00
29,375.00
of which: Capital instruments
33,200.00
33,200.00
iv
Other liabilities & provisions
72,081.03
48,305.14
1,876,730.52
1,853,307.24
Total
Assets
Cash and balances with Reserve Bank of India
75,178.70
75,177.44
Balance with banks and money at call and short notice
4,572.79
3,276.67
ii
Investments:
485,647.85
464,358.56
of which: Government securities
433,145.84
425,138.61
of which: Other approved securities
2,001.92
of which: Shares
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
8,248.84
3,157.70
21,017.93
19,664.51
653.49
2,078.49
20,579.83
14,319.25
1,259,780.95
1,259,757.39
1,259,780.95
1,259,757.39
iv
Fixed assets
12,746.68
12,707.80
Other assets
38,774.55
38,000.38
of which: Goodwill and intangible assets
of which: Deferred tax assets
vi
Goodwill on consolidation
29.00
29.00
vii
Debit balance in Profit & Loss account
Total Assets
1,876,730.52
1,853,307.24
101

-12 :] \-
.

-
\-2
31-03-2015
31-03-2014

]
i
]
6,028.47
6,028.47

] : 1
6,028.47
6,028.47

] : 1
-
-

94,913.76
95,266.37

]

20,941.53
20,551.53

/
174.68
917.29

]

() ] ] \ ]
-
-

{
26,294.01
26,294.01

{
24,321.43
24,321.43

] {
4,444.17
4,444.17
]

36(1)(viii) {
11,600.00
11,600.00
\

{
7,128.75
7,128.75

{

] ] \

]
ii
]

] : ]

] : ]

] : ] (] )
iii

] :

] :

] : ]

] : ( )-

] : ]

]

() 1 ]
9.19
-
-
100,942.23
1,550,514.08
383.85
1,344,402.00
205,728.23
153,193.18
66,500.00
1,719.38
22,398.80
29,375.00
33,200.00

iv

18,620.00
-
72,081.03

10,875.00
251.42
-
-
1,876,730.52
6,400.00
() ] 2 ]
() ] 2 ]

] :

Il

102
9.19
]
-
-
101,294.84
1,550,514.08
383.85
1,344,402.00
205,728.23
153,193.18
66,500.00
1,719.38
22,398.80
29,375.00
33,200.00
6,400.00
18,620.00
48,305.14

10,875.00
251.42
-
1,853,307.24
DF-12- Composition of Capital-

Reconciliation Requirements

Step-2
Balance sheet as in
financial statements

Balance sheet
under regulatory scope of
consolidation
As on 31-03-2015
As on 31-03-2015
Ref No.
Capital & Liabilities
Paid-up Capital
6,028.47
6,028.47
of which: Amount eligible for CET1
6,028.47
6,028.47 a
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 reckoned for capital

adequacy purpose
Statutory Reserves
General Reserve
Capital Reserve
94,913.76 95,266.37
20,941.53
20,551.53
174.68
917.29
26,294.01
26,294.01
24,321.43
4,444.17
24,321.43
4,444.17
f
g
Special Reserve u/s 36(1)(viii) of IT Act
11,600.00
11,600.00
Revaluation Reserve
Foreign Currency Translation Reserve
7,128.75
9.19
7,128.75
9.19
i
j
Minority Interest
Of which considered under capital funds
Total Capital
100,942.23
101,294.84
ii Deposits
1,550,514.08
1,550,514.08
of which: Deposits from banks
of which: Customer deposits
of which: Other deposits (pl. specify)- Certificate of Deposit
iii
Borrowings
of which: From RBI
of which: From banks
1,719.38
1,719.38
of which: From other institutions & agencies
22,398.80
22,398.80
of which: Others (pl specify)- Outside India Line of Credit
29,375.00
29,375.00
of which: Capital instruments
33,200.00
33,200.00
of which:
(a) Eligible AT1 capital
(b) Eligible T2 capital issued by Bank
(c) Eligible T2 capital issued by subsidiaries
Provision against standard assets
Provision for ARCIL
DTLs related to goodwill
DTLs related to intangible assets
1,344,402.00
1,344,402.00
205,728.23
205,728.23
153,193.18
153,193.18
66,500.00
66,500.00
6,400.00
6,400.00
18,620.00
18,620.00
72,081.03
of which:
383.85
iv Other liabilities & provisions

383.85
-
48,305.14

10,875.00
10,875.00
251.42
251.42
-
-
Total
1,876,730.52
103
1,853,307.24

i

ii

iii

iv

{
\

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

] :
] :
\
] :

v

vi
vii

-
( )

] : \
] :
] :

( )

75,178.70
4,572.79
485,647.85
433,145.84
2,001.92
8,248.84
21,017.93
653.49
20,579.83
1,259,780.95
-
1,259,780.95
12,746.68
75,177.44
3,276.67
464,358.56
425,138.61
-
3,157.70
19,664.51
2,078.49
14,319.25
1,259,757.39
1,259,757.39
12,707.80
363.20
38,774.55
-
359.60
38,000.38
-

-
-
-
-
29.00
-
1,876,730.52
-
-
-
29.00
-
1,853,307.24
\ 3

1

2
3
4

5

6
7
8
III (] )
1 ] : {
\ 2
]

/
] ] (-
) ]
26,580.00
+
]

917.29
-
\ ( {)
66,659.61
++]+\
] ] 1 {
( - )
-
] ]
(1 )
-
] 1 ]
94,156.90
]
-
( )
17.40
60%
104

B
Assets
Cash and balances with Reserve Bank of India
75,178.70
75,177.44
Balance with banks and money at call and short notice 4,572.79
3,276.67
ii
Investments
485,647.85
464,358.56
of which: Government securities
433,145.84
425,138.61
of which: Other approved securities
of which: Shares
of which: Debentures & Bonds
2,001.92
o
p
8,248.84
3,157.70
21,017.93
19,664.51
653.49
2,078.49
20,579.83
14,319.25
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
of which:
Intangibles other than mortgage - servicing rights
(net of related tax liability)
Other assets
of which: Un amortized pension and gratuity
of which: Goodwill and intangible assets
1,259,780.95
1,259,757.39
1,259,780.95
1,259,757.39
12,746.68
12,707.80
363.20
359.60
38,774.55
38,000.38
Out of which:
Goodwill
Other intangibles (excluding MSRs)
Deferred tax assets
vi
Goodwill on consolidation
29.00
29.00
vii
Debit balance in Profit & Loss account
Total Assets
1,876,730.52
1,853,307.24
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
26,580.00
Source based on reference

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

2 Retained earnings
917.29
3 Accumulated other comprehensive income (and other reserves)
66,659.61
c-d
e+f+g+h
4 Directly issued capital subject to phase out from CET1

0
(only applicable to non-joint stock companies)
5 Common share capital issued by subsidiaries and held by third parties
0
(amount allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments
94,156.90
7 Prudential valuation adjustments
8 Goodwill (net of related tax liability)
17.40
105
60% of v
- 13 ]

]
31.03.2015

1
2

3

4

5

6

7
8

VI
VII VIII I
II II
II
\\ I
II
\\ II \\ III
II
II
\
( ]
]
,
434 434 434 434 434 434 434 434 434
09073
09081
09131
09099
09107
09115
09123
09149
\) 01013

I II
II
II
I
\\ II \\ II \\ II
III
- I

I
III
//

]
]
]
]
]
]
]
]
] 6028.47
7000.00
6000.00
3200.00
2000.00
2000.00
5200.00
2800.00
5000.00

(. , ]

)
.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/
( /
)

10
( )
11 * 11.01.2008
10.09.2008
24.12.2009
31.12.2008
25.03.2009
( )
08.06.2009
18.12.2009
26.12.2014
12
13
10.09.2018
24.12.2019
25.03.2024***
08.06.2024***
18.12.2024***

11.05.2018
14

**

26.12.2019****
15

,

/
17

/
18
9.15% 11.00% 8.55% 9.50% 9.30% 8.72% 8.70%

19

20 ,

21

16

106
9.55%

Table DF-13: Main features of Regulatory Capital Instruments

VI Issue
VII Issue
VIII Issue
IPD I Issue
Upper I Issue
Upper II Issue
Upper III Issue
Particulars
Equity shares
Lower Tier II
Lower Tier II
Lower Tier II
Tier I
Tier II
Tier II
Tier II

1 Issuer
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Andhra Bank
Perpetual
Additional
Tier I
Andhra Bank
2 Unique identifier
INE434A01013 INE434A09073 INE434A09081 INE434A09131 INE434A09099 INE434A09107 INE434A09115 INE434A09123 INE434A09149
(e.g. CUSIP, ISIN or

Bloomberg identifier
for private
placement)
3 Governing law(s)
of the instrument

Applicable Indian statutes and regulatory requirements
Regulatory treatment
4 Transitional
Equity Tier I
Tier II
Tier II
Tier II
Tier I
Upper Tier II
Upper Tier II
Upper Tier II
Basel III rules
Not applicable
5 Post-transitional
Equity Tier I
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
Ineligible
Basel III rules
Additional
Tier I
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
7000.00
6000.00
3200.00
2000.00
2000.00
5200.00
2800.00
5000.00
Amount recognised 6028.47

in regulatory capital
(`. in million, as
of most recent
reporting date)
Par value of
`10/-
`10,00,000/-
`10,00,000/-
`10,00,000/- `10,00,000/-
`10,00,000/-
`10,00,000/-
`10,00,000/-
instrument (Face
value of each
share / bond)
10 Accounting
classification
Shareholders'
Borrowings
Borrowings
Borrowings
Borrowings
Borrowings
Borrowings
Borrowings
equity
`10,00,000/-
Borrowings
11 Original date of
various dates*
11.01.2008
10.09.2008
24.12.2009
31.12.2008
25.03.2009
08.06.2009
issuance (Date
of allotment)
18.12.2009
26.12.2014
12 Perpetual or dated
Dated
Perpetual
Perpetual
Dated
Dated
Dated
Perpetual
Dated
Dated
13 Original
No maturity
11.05.2018
10.09.2018
24.12.2019
Perpetual**
25.03.2024***
08.06.2024***
maturity date
18.12.2024*** Perpetual
14 Issuer call subject

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

Not applicable
Not applicable Not applicable Not applicable Not applicable Not applicable
Not applicable
contingent call
dates and
redemption amount
Not applicable 26.12.2019****
16 Subsequent call
Not applicable
Not applicable
dates, if applicable
Coupons / dividends Dividend
Coupon
Coupon
Coupon
Coupon
Coupon
Coupon
Not applicable Not applicable

Coupon
Coupon
17 Fixed or floating
Not applicable
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
dividend/coupon
Fixed
Fixed
18 Coupon rate and any Not applicable

9.15% p.a.
11.00% p.a.
8.55% p.a.
9.50% p.a.
9.30% p.a.
8.72% p.a.
related index
8.70% p.a.
9.55% p.a.
19 Existence of a
Not applicable
Not applicable
dividend stopper
YES
20 Fully discretionary,
Fully
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
partially
discretionay
discretionary
or mandatory
Mandatory
21 Existence of step
NO
NO
NO
NO
Step-up
Step-up
Step-up
up or other
incentive to redeem
NO
107
Step-up
22 \ \
23

24 ,

25 ,

,

27 ,

28 ,

29 ,

30
31 ,

26

I
(i) 31 \ 2019

5.5 %
(ii) 31 \ 2019

( 1
6.125 %
).
32 ,

33 ,

34 ,

, ]
]
]
\

]

35

(
]
] ] ]
] ]
]
]
)

\

;
],
108
22 Non-cumulative
or cumulative
Non-
cumulative
23 Convertible or
Not applicable
non-convertible
Non-
Convertible
Non-
Convertible
Not applicable
Not applicable
Not applicable
Not applicable
Non-
Convertible
Non-
Convertible
Non-
Convertible
Non-
Convertible
Non-
Convertible
NonConvertible
No
No
YES
24 If convertible,
conversion trigger(s)
Not applicable
25 If convertible,
fully or partially
Not applicable
26 If convertible
conversion rate
Not applicable
27 If convertible
mandatory or
optional conversion
Not applicable
28 If convertible
Not applicable
specify instrument
type convertible into
29 If convertible
specify issuer of
instrument it
converts into
Not applicable
30 Write-down feature
No
No
No
No
No
No
Trigger means
that the Issuer
Common
equity Tier -I

31 If write-down,
Not
Not
Not
Not
Not
Not
Not
Not
write-down
applicable
applicable
applicable
applicable
applicable
applicable
applicable
applicable
trigger(s)
ratio is
(i) If calculated
at any time
prior to March
31, 2019, at or
below 5.5% of
RWAs; or
(ii) If calculated
at any time
from and
including
March 31,
2019, at or
below 6.125%
of RWAs (the
CET 1 Trigger
Event
Threshold).
32 If write-down,

full or partial
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Not
applicable
Full or
Partial
Not
Not
Not
Not
Not
Not
Not
Not
33 If write-down,

permanent or temporary applicable
applicable
applicable
applicable
applicable
applicable
applicable
applicable

34 If temporary
Not
Not
Not
Not
Not
Not
Not
Not

write-down,
applicable
applicable
applicable
applicable
applicable
applicable
applicable
applicable

description of

write-up mechanism
Temporary
35

Superior to the
claims of
investors in
equity shares
and perpetual
Position in
Subordinate
All other
All other
All other
subordination
to all other
creditors and
creditors and
creditors and
hierarchy in
claims
Depositors of Depositors of
Depositors of
liquidation (specify
the Bank
the Bank
the Bank
instrument type
109
All other
All other
All other
All other
creditors and
creditors and
creditors and
creditors and
Depositors of
Depositors of
Depositors of
Depositors of
the Bank & All
the Bank
the Bank
the Bank
Investors in
Bank at its
sole discretion
may write-up
the bonds to its
original value
in future, when
it demonstrates
that its capital
position is
well above the
minimum
capital
requirements
and with the
prior approval
of RBI

]
;

36 -

37 , -

(*) ] ..24.03.2001; ] ..03.02.2006;

..25.03.2011; ..21.12.2013; .. 25.03.2015
(**) ] ] ] ] 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%
(****) ..() 5 \ ; () ] ; ()
] ] ] ] ]
] ] \ 8% ]
() ( 2.5% ] ) - \
] 11.5% ]
110

immediately senior
Tier-II Bonds
non-cumulative

to instrument)
preference

shares;

Subordinate to

the claims of

depositors,

general

creditors

and subordinate

debt bonds; Is

neither secured

nor covered by

a guarantee of

the issuer nor

related entity or

other

arrangement

that legally or

economically

enhances the

seniority of the

claim vis-a-vis

Bank's creditors
36 Non-compliant
NO
NO
NO
NO
NO
NO
NO
NO
Not

transitioned features
Applicable
37 If yes, specify non
-compliant features
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; Preferential allotment to Govt. of
India .. 25.03.2015
(**) Innovative Perpetual Debt Bonds issued with a Call option that may be exercised after the instrument has run for 10 years,
with prior permission of Reserve Bank of India. If Call Option is not exercised, coupon has a step-up option of 0.50% after 10
years of the instrument and the coupon will be at 10.00% after 31.12.2018.
(***) Upper Tier-II Bonds issued with a Call option that may be exercised after the instrument has run for 10 years, 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
(****) Optional Call Date..(a) The instrument has to run for atleast 5 years; (b) With the prior approval of Reserve Bank of India;
(c) The instrument is replaced with capital of the same or better quality and the replacement of this capital is done at conditions
which are sustainable for the income capacity of the Bank OR The Bank demonstrates that its capital position is well above the
minimum capital requirlements after the call option is exercised. Minimum refers to Common Equity Tier I of 8% Risk Weighted
Assets (RWAs) (including capital conservation buffer of 2.5% of RWAs) and Total capital of 11.5% of RWAs including additional
capital requirements identified under Pillar 2.
111
- 14: ]

, \, , (VI - ] )
] ]
43409073
.700.00
.10,00,000/-
124
9.15%
11 ]
11.01.2008
11.05.2018
] ] ] ]
] /
] 30
/ .
\] () \]
()
+ ( ) (\)
/
] ]
, ] ]
]
112

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
(VI Issue-Series F)
Nature of Instrument
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
Interest payment frequency
Annual
Interest payment
Every year on 11th of 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.
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.CARE: CARE AA+ (Double A Plus)
M/s.India Ratings (FITCH): IND AA/Outlook Stable

Business Day definition

Business Day being a day on which commercial banks are open for
business in the State of Andhra Pradesh, then payment of interest will
be made on the next Business day but without liability for making
payment of interest for the delayed period.

113
, \, , (VII - ] ])
] ]
43409081
] .600.00
.10,00,000/-
120
11.00%
] l
] 10
10.09.2008
10.09.2018
] ] ] ]
] /
] 30 / .
\] () \]
()
+ ( ) (\)
/
] ]
] ]
]
\ ] ]
]
] ].
114
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
Trustees

Credit Rating


M/s.India Ratings (FITCH): IND AA/Outlook Stable
Step-up Option
None
Not applicable


Business Day being a day on which commercial banks are open for
business in the City of New Delhi, 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.
Redemption proceeds: Business day being a day on which commercial

banks are open for business in New Delhi, then the payment due shall
be made on the next business day together with additional interest for
the intervening period.
115
, , -, (VIII ] { \ )
434 09131
.320.00
.10,00,000/-
120
8.55%
24
24.12.2009
24.12.2019
] 30 /

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

] , ] (] ]
, )
]
] ]
116
Name of the Issuer
Andhra Bank

Type of Instrument


(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 repayment date..
Demat only

Listed on


Exchange Ltd (BSE)
Put Option
None
Call Option
None
Trustees

Credit Rating


M/s.Brickwork: BWR AA+/Negative Outlook
Step-up Option
None
Not applicable


Business day being a day on which commercial banks are open for
business in the City of Hyderabad, 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.
In case if the principal redemption 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 Hyderabad, Andhra Pradesh), then the
payment due shall be made on the next business day together with
additional interest for the intervening period.
117
, , -, ,
434 09099
.200.00
.10,00,000/-
9.50%
31
31.12.2008
] 30 /
( \ )
] /
\] ()
\] ()
10 - {

-

-
: / () :
/
- 10
0.50%
- 31.12.2018 10.00%
] , ] (] ]
, )
] ] ]
\ } ( ]
] ) \ ]
- ]
118
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

The Record Date for the Bonds shall be 30 days prior to each
interest payment and / or principal repayment date ( in case of
exercise of call option)
Demat only

Listed on


Exchange Ltd (BSE)
None
Put Option

Call Option

After 10 years run of the instrument - with prior permission of

Reserve Bank of India
Trustees

Credit Rating

M/s.CRISIL:CRISIL AA/Stable (Reaffirmed)

M/s.Brickwork: BWRAA/Negative Outlook

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

Business Day definition If any interest payments 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 New Delhi), 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.

In case the date of redemption falls on a holiday, then the

redemption proceeds will be paid on the next working day (i.e. a day
on which scheduled commercial banks are open for business in
Delhi), at the time of exercise of call option.
119
, , - (\\ -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%
] , ] (] ]
, )
] ] ]
\ } ( ]
] ) \ ]
- ]
120
Name of the Issuer
Andhra Bank
Type of Instrument
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)
None
Put Option

Call Option


Trustees

Credit Rating

M/s.CRISIL:CRISIL AA/Stable
M/s.Brickwork: BWR AA/Negative outlook

Step-up Option

exercised
9.80% from 25.03.2019 till 25.03.2024 if call-option is not exercised


If any interest 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), 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.

Business Day (Business Day being a day on which Commercial
Banks are open for business in the City of Hyderabad), then the
payment due shall be made on the next Business Day together with
121
, , ( -II) - -II -
43409115
520.00
10,00,000.00
15
8.72%
08.06.2009
08.06.2024
] ]
/ \ 30
]/
\] () \] ()
10 - {
- / - /
- 10 0.50%
-08.06.2019
08.06.2024 - 9.22%
] ] - , (
] ) ]
] \ ]
]
\ } ( ]
) \ ]
- ]
122
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 years
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)
None
Put Option

Call Option


Trustees

Credit Rating

M/s.CRISIL:CRISIL AA/Stable
M/s.Brickwork:BWR AA/Negative Outlook

Step-up Option

exercised
9.22% from 08.06.2019 till 08.06.2024 if call-option is not exercised


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), 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.

Business Day (Business Day being a day on which Commercial
123
, , ( -II)
- -III -
43409123
280.00
10,00,000.00
15
8.70%
18
18.12.2009
18.12.2024
] ]
/ \ 30
]/
\] () \]
()
10 - {
- ( ) - /
- 10 0.50%
18.12.2019 18.12.2024
9.20
] ] - , (
] ) ]
] \ ]
]
\ } ( ]
] ) \
] -
]
124
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
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)
None
Put Option

Call Option


Trustees

Credit Rating

M/s.CARE:CARE AA (Double A) M/s.Brickwork: BWR AA/

Negative Outlook

Step-up Option

exercised


9.20% from 18.12.2019 till 18.12.2024 if call-option is not

exercised


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), 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.
In case if the principal redemption date falls on a day which is not
a Business Day (Business Day being a day on which Commercial
125
, , III -I

434A09149
500.00
10,00,000.00
9.55
26
26.12.2014
] \ ] / \
15
]/
\] ()
() 5 ()
; () ] \ ]

- ] ]
8% -1 (
2.5% { ) -2 \
] 11.5% ]
- -/
] ] - , (
] , )
] ] \
] ]
126
Name of the Issuer
Andhra Bank

Type of Instrument

Unsecured, Non-Convertible BASEL III Compliant Additional

Tier-1 Perpetual Debt Instruments
Promissory Notes
Mode of Issue
Private Placement
ISIN No.
INE434A09149
Issue size
` 500.00 Crores
Face Value
` 10,00,000/- per bond
Tenor
Perpetual
Coupon Rate
9.55% per annum
Coupon Type
Fixed
Annual
Interest payment
Date of allotment
26.12.2014
Date of maturity
Perpetual

Record date

The Record Date for interest and redemption payment would be 15

days prior to interest and / or redemption date.
Demat only
Listed on
National Stock Exchange of India Ltd (NSE)
Put Option
None

Call Option

Optional Call Date..(a) The instrument has to run for atleast 5 years;
(b) With the prior approval of Reserve Bank of India; (c) The
instrument is replaced with capital of the same or better quality
and the replacement of this capital is done at conditions which are
sustainable for the income capacity of the Bank OR The Bank
demonstrates that its capital position is well above the minimum
capital requirements after the call option is exercised. Minimum
refers to Common Equity Tier I of 8% Risk Weighted Assets (RWAs)
(including capital conservation buffer of 2.5% of RWAs) and Total
capital of 11.5% of RWAs including additional capital requirements
identified under Pillar 2.
Trustees
Credit Rating
M/s.CRISIL: CRISIL AA-/Stable
Step-up Option
None
Not applicable


Business Day shall be a day on which commercial banks are open

for business in the city of Hyderabad, Telangana. If any coupon
payment date and/or redemption date falls on a day which is not
a business day, payment of interest and/or principal amount shall be
made on the next business day without liability for making payment
of interest for the delayed period.
127

1. -

\\ , , ]
.
l
[\
, \ ]
, \ .
2.
2.1 ( ) 1980
2.2 ( ) 1980 ( )
] 1980
2.3 ] ] ]
( ) 1980 9 (3)
() ( ) ] 1980 3 (1),
5, 6, 7 8 (1) ] .
2.4 ( ) ]
] ] (
) 1980 9 (3) () (
) ], 1980 3 (1) 8 (1) ] .
2.5 31 \ 2015 10 ] ( 2 ),
{
, , ] \ ,
\ , 9(3)(\) 3()
2.6 ] ] \\ ,
[
2.7 , ] ]
- ]
] \ ] .
2.8 ] ]
]
2.9 1/2 \ 31 \ 2015

7 (] 4 )
10
128
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
Transfer of Undertakings) Act 1980.
Companies (Acquisition &
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, 2015 there are 10 Directors on the Board consisting of Three Whole Time Directors (one Chairman
& Managing Director and two Executive Directors), One Director who is an official of the Central Government
nominated by it, One Director who is an Officer of Reserve Bank of India nominated by the Central Government on the
recommendation of RBI, One Director nominated by Central Government representing Workmen Employees of the
Bank, two Directors elected from amongst Shareholders other than Central Government and two Directors nominated
by the Central Government under sec 9 (3)(h) & 3(A).
2.6 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.
2.7 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.
2.8 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.
2.9 The Chairman of the Board is a Whole Time Director and therefore at least 1/2 of the Board consists of Independent
Directors. Accordingly the composition of the Board as on 31st March, 2015 is as under:
Type of Directors
No. of Directors
Executives
Non-Executives
7(out of which 4 are Independent Directors)
Total
10
129
2.10 2014-15
1. ]

13.12.2013 ()
] 1978 , ,
, // , , ] , \ \
, ] , , ] ,
2008 2012 01.03.2012
12.12.2013
2. ..

. 05.10.2012 ()
1981 31 \,
\, , ] \
\ \
]
3. ]

.13.03.2015 ( ) 8 (1) 3
(1) [ ] ( ) 9(3)() ,
\ , ] 48 (
) IV 2001 ] 12 \ 2015
..
/ \
4.

.28.12.2011 30.04.2014 36
.10.09.1975 , . ,
[ , \
\[ \
5.

30.09.2013 ] 1998 \
] , , ] ], \, -, ]
] \, \ ] ] \, ] \,
, () ] - , ,
, ,
6. .

] , ] , { ,
13.03.2014 29
\ 1991 1993 2002 2008 \
2013
7.

] 1985 ]
, \ \ - ,
\ \ \, \ \ ,
\
130

2.10 Profile of Directors on the Board during the Year 2014-15
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) and started his banking career in Corporation Bank in 1978. He has varied experience
in International Banking, Investment Banking, Merchant Banking, SSI/SME/Agr. Lending, Industrial Finance,
Commercial Lending, Infrastructure Financing & Information Technology. During his 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 since May, 2008 in Corporation Bank till 2012.
He was Executive Director of Bank of Maharashtra from 01.03.2012 till 12.12.2013.
2.
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 during 1981; he had 31 years of experience in the
Bank. He worked in various capacities in Operations, Industrial Finance, and Corporate Credit and acquired good
exposure in various fields like Operations, Corporate Credit, International and Industrial Finance. He also served as
Zonal Head of various Zones. Before joining the Bank as an Executive Director he was heading Treasury Branch in
Allahabad Bank as General Manager.
3.
Sri Ajit Kumar Rath
He assumed charge as Executive Director of the Bank on 13.03.2015 for a period of five years with effect from the
date of his assumption of charge of the post, or until further orders, whichever is earlier U/s 9(3)(a) of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980, read with sub clause (1) of clause 3 and sub clause
(1) of clause 8 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme,1980.He is aged 48
years and is qualified with AMIE ( Electronics & Telecom). He joined Union Bank of India in Scale IV cadre in 2001
and worked till 12th March 2015. During his career in Union Bank of India was elevated upto General Manager Cadre.
He was a Director on the Board of Swift India Domestic Services Pvt. Ltd., on behalf of Union Bank of India. He was
a member of Technical Advisory Committee of NPCI / SWIFT India & Star Union Daichi Insurance Company.
4.
Sri K.K. Misra
He was the Executive Director of Andhra Bank w.e.f. 28.12.2011 till 30.04.2014. 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.
5.
Sri Anandrao Vishnu Patil
He joined the Board on 30.09.2013 as Nominee Director of Government of India. He is an IAS, 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, and Small & Medium Enterprises (MSME). Presently he is The Director,
Department of Financial Services, Ministry of Finance, Govt. of India, New Delhi.
6.
Sri E.E. Karthak
He is post graduate in Political Sciences from Jawaharlal Nehru University, Delhi. Presently he is Regional Director,
Reserve Bank of India, Bengaluru. He is the Nominee Director of Reserve Bank of India on the Board 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 operations in Sikkim as Officer-in-Charge
and continued to head till 2013.
7.
Sri K. Thamaraiselvan
He is a Graduate in Law and a Post Graduate in Commerce with CAIIB. Joined as a Clerk in 1985 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.
131
8. ] \
20 .. { \
-
.22.09.2014
9. .

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] 2012
, 2008 2011
] ] ] ]
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, 2004 \[ ,
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2014
132

8.
Sri Pankaj Chaturvedi
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. He was in the Board till 22.09.2014.
9.
Dr. Naina Sharma
She joined the Board on 12.12.2013. 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, Shiksha
Ratan Puraskar by India International 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 has been widely appreciated.
10. Sri Amit Goel

He joined the Board on 18.02.2014 and is a Graduate in Commerce and Law. He works in the space of policy for
inclusive growth inclusive governance. He is currently a full time Adviser to a Coordination Committee for Zonal
Cultural Committees. Earlier he was a full time Adviser to the High Powered Committee for review of the functioning
of Zonal Cultural Centres set up for cultural outreach of the underprivileged sections of society in rural and urban
areas, Adviser to the Government of Chattisgarh and Uttarakhand. He was also Adviser to Confederation of Indian
Industry CII and full time Adviser, Rural Business Hubs (RBH) in the Ministry of Panchayat Raj, Government of India
during 2006-08.
Further he was Adviser-Secretary to the Expert Committee on leveraging Panchayats for efficient delivery of public
goods and services.
Shri Goel 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.
Sri Nagi 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. He was in the Board till 18.02.2015.
12. Mr. A. Krishnakumar

He has been elected as Director from amongst shareholders other than Central Government w.e.f. 14.03.2015 for a
period of three years till 13.03.2018. He is aged 60 years and his qualification is BA ( Hons) in economics from Delhi
University and CAIIB. He had started his career in 1975 as a Probationary Officer in State Bank of India. During
last 15 years in State Bank of India, he worked as Deputy General Manager in-charge of Commercial Banking at
Ahmedabad and later Circle Financial Officer in the Hyderabad Circle of the Bank. Subsequently as General Manager
he was in-charge of Learning and Development in the Human Resources Department at the Banks Corporate Centre.
In September 2004, he was posted as General Manager in the Banks Chandigarh Circle, On his next promotion, he
handled the Mid Corporate Group of the Bank as its Chief General Manager. In October 2007, he was posted as the
Chief General Manger of the Banks Patna Circle. As Deputy Managing Director he headed the Banks Information
Technology Department from July 2009 till April 2011 in the Banks Corporate Centre.
He was elevated as Managing Director & Group Executive in April 2011 and given charge of National Banking. In this
assignment, he was responsible for the entire Retail Business of SBI covering the entire gamut of Retail Deposits,
Commercial Loans, Agricultural Loans, Home Loans, Auto Loans and other Retail Loans spread over nearly 16000
branches. In April 2014, he was assigned the task of overseeing the International Operations of SBI covering 190
offices in 36 countries. He was also on the Boards of SBI Life Insurance, SBI General Insurance, and SBI Credit
Cards, three subsidiaries of State Bank of India. He was one of the key persons in policy making and formulating the
strategies for the Bank till his superannuation in November 2014.
133
13. ]

.14.03.2015 .13.03.2018 \
54 , ( ]), , , \
1988 1991 1991
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.14.03.2012 .13.03.2015 \
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16.

.14.03.2012 .13.03.2015 \
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] \ ]

2.11 2014-2015

] ,
13.03.2015
14.03.2015
14.03.2015
2.12 2014-2015

,
] \

]

-
30.04.2014
22.09.2014
18.02.2015
13.03.2015
13.03.2015
13.03.2015
134

13. Mr. G. Sivakumar

He has been elected as Director from amongst shareholders other than Central Government w.e.f. 14.03.2015
for a period of three years till 13.03.2018. He is aged 54 years and he is a B.Tech (Electrical Engineering) IIT,
Madras, Ph.D. (Computer Science) from University of Illinois, Urbana-Champaign, USA. He was Assistant Professor,
Computer Science Department, University of Delaware from Sept 1988 to August 1991. Since August 1991 he is
working as Professor in Computer Science and Engineering, IIT Bombay.
His research interests are Formal Specification and Verification, Theorem Proving, Network Security and Management.
He is one of the Founder Members of the IFIP Working Group (WG 1.6) on Term Rewriting. He is Steering Committee
Member, Indian Association for Research in Computing Sciences (IARCS). He was Senate Nominee on IIT Bombays
Board of Governors (2006-2007). Member of Governing Council of IDRBT (since 2005);Member, IT Advisory
Committee of RBI, CCIL, NSDL, SEBI; Founder Member of Open Source Software Resource Centre (OSSRC);
Chair, Interoperability Framework Committee for Open Standards in E-governance.
14. Sri G.R. Sundaravadivel

period of three years till 13.03.2015. 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.
15. Sri K Raghuraman

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 till 13.03.2015. 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.
16. Sri Nandlal L. Sarda

period of three years till 13.03.2015. 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 Board of Director of Union Bank of India. He is presently on the Board of Directors
of Clearing Corporation of India and IDBI. He is also serving on the Technical Advisory Committees of many
organizations.
2.11 Names of persons who were appointed as Directors during the year 2014-15
Name of the Director
Date of Appointment
Shri Ajit Kumar Rath, Executive Director 13.03.2015

Shri. A. Krishnakumar
14.03.2015
Shri. G. Siva Kumar 14.03.2015

2.12 Names of persons who ceased to be Directors during the year 2014-15
Shri. K. K. Misra, Executive Director 30.04.2014
Shri. Panjal Chaturvedi 22.09.2014
ShriN. Venkata Ramana Reddy 18.02.2015
Shri. G.R. Sundaravadivel 13.03.2015
Shri. K. Raghuraman 13.03.2015
Shri. Nandlal L Sarda 13.03.2015
Date of Cessation
135
2014-2015 ] . 13.03.2015 ,
] .14.03.2015 ( ) \ ] ]
2.13 2014-2015 11
09.05.2014
02.08.2014
06.12.2014
12.03.2015
28.06.2014
20.09.2014
30.01.2015
28.03.2015
18.07.2014
30.10.2014
20.02.2015
.01.04.2014 . 31.03.2015 ]

18.07.2014

]
01.04.2014
31.03.2015
11
11
01.04.2014
31.03.2015
11
10
13.03.2015
31.03.2015
01
01
01.04.2014
30.04.2014
--
--
01.04.2014
31.03.2015
11
10
01.04.2014
31.03.2015
11
06
01.04.2014
31.03.2015
11
10
.
-
01.04.2014
31.03.2015
11
09
01.04.2014
31.03.2015
11
11
] \

01.04.2014
22.09.2014
05
03
01.04.2014
17.02.2015
08
07
,

\
14.03.2015
31.03.2015
01
01
] ,

\
14.03.2015
31.03.2015
01
01
136

During the year 2014-15 Shri Ajit Kumar Rath joined the Bank as Executive Director, w.e.f. 13.03.2015, Shri A. Krishnakumar
& Shri G. Sivakumar, joined the Board on 14.03.2015 as Directors elected from amongst shareholders (other than Central
Government).
2.13 During the year 2014-15 the Board of Directors met on 11 occasions on the following dates

09.05.2014
02.08.2014
06.12.2014 12.03.2015
28.06.2014
20.09.2014
30.01.2015 28.03.2015
18.07.2014
30.10.2014 20.02.2015
The details of attendance of each Director at the Board and other Committee Meetings along with the number of
meetings held during the period from 01.04.2014 to 31.03.2015 are as under:
No.of Board
Board Meetings

Period
meetings held attended
during the
period
Attendance at the
the Fourteenth
AGM held on
18.07.2014
Sri C.VR. Rajendran

Chairman& Managing Director
01.04.2014 to 11 11
31.03.2015
Attended
Sri. S.K. Kalra

Executive Director
01.04..2014 to 11 10
31.03.2015
Attended
Sri. Ajit Kumar Rath

Executive Director
13.03.2015 to 01 01
31.03.2015
Not Applicable
Sri. K.K Misra

Executive Director
01.04.2014 to --
30.04.2014
Not Applicable

Govt. of India Nominee Director
01.04.2014 to 11 10
31.03.2015
Absent
Sri E.E. Karthak

01.04.2014 to 11 06
31.03.2015
Absent
Representing Workmen
Employee Director
01.04.2014 to 11 10
31.03.2015
Absent
Dr. Naina Sharma

Part-time Non-Official Director
01.04.2014 to 11 09
31.03.2015
Absent
Sri Amit Goel

01.04.2014 to 11 11
31.03.2015
Attended

01.04.2014 to 05 03
22.09.2014
Attended
Sri N. Venkata Ramana Reddy

01.04.2014 to 08 07
17.02.2015
Attended
Sri A. Krishnakumar
Director elected from amongst
shareholders other than Central Govt
14.03.2015 to 01 01
31.03.2015
Not Applicable
Sri G. Sivakumar
14.03.2015 to 01 01
31.03.2015
Not Applicable
137
--
]. . ,

\
.,

\
01.04.2014
13.03.2015
10
08
01.04.2014
13.03.2015
10
09
.

\
01.04.2014
13.03.2015
10
08
2.14 , ]

\\
2.15

]

()
-
-
1.
2.
3. \\

4. ]
5.
6.
7.
8.
1.
2.
3.\\

4. ]
5.
6.
7.
8.
13.12.2013
30.04.2015
138
Sri G.R. Sundaravadivel

01.04.2014 to 10 08
13.03.2015
Absent
Sri K Raghuraman
01.04.2014 to 10
13.03.2015
09
Attended
Sri Nandlal L. Sarda

01.04.2014 to 10
13.03.2015
08
Attended
2.14 The Board has constituted various committees as under, which provide specific and focused governance in the
important functional areas and control the affairs of the Bank:

Management Committee
Audit Committee
Risk Management Committee
Departmental promotion Committee
Special Committee for monitoring large value frauds
Shareholders and Investors Grievances Committee / Stakeholders Relationship Committee
Share Transfer Committee
Remuneration Committee
Nomination Committee
Information Technology Strategy Committee
Credit Approval Committee
Steering Committee on Human Resources Management
Committee for Monitoring of Recovery in NPAs
Customer Service Committee
2.15 Particulars of Directors and their membership in Committees

Name of
Directors
Directorship/
Membership
of Committees
in other
Companies
Membership of the Committees in

the Bank
Chairman/ Chairperson of the

Committees
Sri. C.VR.
Rajendran
Chairman
&
Managing
Director
IndiaFirst Life
Insurance
Company
Limited;
Indian Institute
of Banking and
Finance;
India
International
Bank Malaysia
(Berhad)
1. Management Committee of the

Board
2. Departmental Promotion
Committee of the Board
3. Special Committee for
monitoring large value frauds
4. Risk Management Committee of
the Board
5. Credit Approval Committee of
the Board
6. Steering Committee of Board on
Human Resources.
7. Committee for Monitoring of
Recovery in NPAs
8. Customer Service Committee
1. Management Committee of
13.12.2013
to
the Board
2. Departmental Promotion
30.04.2015
Committee of the Board
3. Special Committee for
monitoring large value frauds
4. Risk Management Committee
of the Board
5. Credit Approval Committee of
the Board
6. Steering Committee of Board
on Human Resources.
Recovery in NPAs
139
Period of
Directorship
from - to
. .

1.
-
1.
2.
3.
4.
5. ]
6.
7.
8.
9.
10. \
1. - (01.04.2013)
05.10.2012
31.08.2017
1.
2.
3.
4.
5. ]
6.
7.
8.
9.
10. \
13.03.2015
12.03.2020
1.
-
2.
- (
)
3.
( )
4. ,
2002

1.
2.
3.
4.
5. ]
6.
7.
8.
9.
28.12.2011
30.04.2014
1.
2.
3. ]
4. \\

5.
6.
7.
8.
1.
2.
30.09.2013
1.
2.
3.
4.
13.03.2014
140
Sri S.K.
Kalra
Andhra Bank.
Financial Services
Ltd Chairman of
the Board
1. Management Committee of the Board

2. Audit Committee of the Board
3. Departmental Promotion Committee of
Executive
the Board
Director
4. Stakeholders Relationship Committee
5. Risk Management Committee of the
Board
6. Share Transfer Committee
7. Credit Approval Committee of the
Board
Human Resources.
9. Committee for Monitoring of Recovery
in NPAs
10. Information Technology Strategy
Committee
Sri Ajit KuNone
mar Rath
3. Departmental Promotion Committee
Executive
of the Board
Director
Board
7. Credit Approval Committee of the
Board
Human Resources.
9. Committee for Monitoring of Recovery
in NPAs
Committee
Sri K.K Misra 1. Andhra Bank
1. Management Committee of the board
Financial Services
Executive
Ltd Chairman of
3. Departmental Committee of the board
Director
the Board
4. Stakeholders Relationship committee
2. India First Life
Insurance Limited
Board
(Nominee Director) 6. Share Transfer Committee
3. ASREC India Ltd. 7. Credit Approval Committee of the
(Nominee Director)
Board
4. Designated
Director on the
Human Resources.
Banks Board as per 9. Committee for Monitoring of Recovery
PMLA Act 2002
in NPAs
Sri Anandrao None
Vishnu Patil
of the Board
Govt. of India
Nominee
Board
Director
4. Special Committee for Monitoring
Large value Frauds
5. Remuneration Committee of the
Board
6. Nomination Committee of the Board
Human Resources.
Recovery in NPAs
Sri E.E.
None
Karthak
RBI Nominee
of the Board
Director
Board
141

(Chairman i.e. 01.04.2013)
05.10.2012
to 31.08.2017
None
13.03.2015
to 12.03.2020
None
28.12.2011
to 30.04.2014

Board
2. Nomination Committee of the
Board
Since
30.09.2013
None
Since
13.03.2014
1.
2.
3.\\

25.11.2013
24.11.2016
.
-
1. (29.01.2014
28.07.2014 29.01.2015
28.07.2015 )
2.
(02.02.2014 )
3.
(14.03.2015 )
4. (23.09.2014
)
5.\\
(14.03.2015
)
6.
(14.03.2015 )
12.12.2013
11.12.2016
, ] .
1.
(28.03.2014 )
2.\
(28.03.2014 )
3.
(14.03.2015 )
4. (09.05.2014
)
5.
(18.02.2015 )
18.02.2014
17.02.2017
] \
-
( )
1 . {
{ .
. (-\
)
2.]
( \
)
3.
..
4.
. (-\
)
1. .
2.
(01.04.2014
27.06.2014 )
3.
23.09.2011
22.09.2014
1.
2. (16.01.2014
31.01.2015)
3.
(01.04.2014 31.01.2015)
142
29.07.2010
28.07.2013
15.10.2013*
18.02.2015
(* )
Sri K.
None
Thamaraiselvan
Workmen
Employee
Director
1. Management Committee of the Board None

2. Customer Service committee
3. Spl. Committee for Monitoring Large
Value Frauds
25.11.2013
to 24.11.2016
Dr. Naina
Sharma
Part-time
Non-Official
Director

(29.01.2014 to 28.07.2014 &
29.01.2015 to 28.07.2015)
(w.e.f. 02.02.2014)
(w.e.f. 14.03.2015)
4. Customer Service Committee (w.e.f.
23.09.2014)
5. Spl. Committee for Monitoring Large
Value Frauds (w.e.f. 14.03.2015)
6. Steering Committee of Board on HR
(w.e.f. 14.03.2015)
12.12.2013
to 11.12.2016
1. Customer Service Committee (w.e.f.

None
28.03.2014)
Committee (w.e.f. 28.03.2014)
(w.e.f. 14.03.2015)
4. Share Transfer Committee (w.e.f.
09.05.2014)
(w.e.f. 18.02.2015)
18.02.2014
to 17.02.2017
1. Management Committee of the Board Audit Committee of the Board

2. Audit Committee of the Board.
(01.04.2014 up to 27.06.2014)
3. Customer Service Committee.
23.09.2011
to 22.09.2014

16.01.2014 to 31.01.2015)
(w.e.f. 01.04.2014 to 31.01.2015)
29.07.2010
to 28.07.2013
None
Sri Amit Goel Energy India Limited, Director

Part-time
Non-Official
Director
Sri Pankaj
Chaturvedi
1.Perfect Business
Advisory Services
Pvt. Ltd. (Unlisted
Part-time
Indian Company)
Non-Official
Member
Director (CA 2.Vijayalakshmi
)Category
Printing Works
Pvt. Ltd. (Unlisted
Indian Company)
Member
3.First Serv.
Solutions Pvt. Ltd.
4.Mahavidya
International Pvt
Ltd. Singapore
(Unlisted Foreign
Company)
Sri N.V.R.
Reddy
Part-time
Non-Official
Director
None
143
*15.10.2013
to18.02.2015
)reappointed*(
1.
1.
(14.03.2015 )
2. ]
(14.03.2015 )
3. \\
(14.03.2015 )
4.
(14.03.2015 )
5.
(14.03.2015 )
14.03.2015
13.03.2018
]

\
1.
(14.03.2015 )
2. ]
(14.03.2015 )
3.
(14.03.2015 )
4.
(14.03.2015 )
5.
(14.03.2015 )
6. \
(14.03.2015 )
1.
2. \
14.03.2015
13.03.2018
]

\
1. -
. (
-
)
2.
\ (.)

3. \
.
1.
(29.07.2014 28.01.2015)
2. /

3. ]
4.
5.\\

6.
7.
(05.06.2012 )
8.
(14.03.2014 )
14.03.2015
13.03.2015
.,

\
1.
. -

2.]

3. .

4.
{ .
5.
-

1.
(01.04.2014 21.07.2014
22.01.2015 13.03.2015)
2.
(28.06.2014 13.03.2015)
3.
4. ]
5. \\

6.
7. \
(30.08.2012 13.03.2015)
8.
(05.06.2012
13.03.2015)
1.
2.
(28.06.2014 )
14.03.2009
13.03.2012
144
14.03.2012*
13.03.2015
(* )
Sri A
KrishnakuNone
mar
Director
elected from
amongst
shareholders
other than
Central Government
1. Audit Committee of the Board (w.e.f.

14.03.2015)
Board (w.e.f. 14.03.2015)
3. Special Committee for monitoring
large value frauds (w.e.f. 14.03.2015)
Board (w.e.f. 14.03.2015)
5. Steering Committee of the Board on
Human Resources (w.e.f. 14.03.2015)
14.03.2015
to 13.03.2018
Sri G. Siva- None

kumar
Director
elected from
amongst
shareholders
other than
Central Government
1. Stakeholders Relationship
1. Audit Committee of the Board (w.e.f.
Committee
14.03.2015)
2. Risk Management
Committee of the Board (w.e.f.
Committee
14.03.2015)
(w.e.f. 14.03.2015)
4. Share Transfer Committee (w.e.f.
14.03.2015)
Board (w.e.f. 14.03.2015)
Committee
(w.e.f. 14.03.2015)
14.03.2015
to 13.03.2018
Shri G.R.
1.REPCO Home
Sundaravadi- Finance Ltd
vel
(Subsidiary of
REPCO Bank
Director
Govt. of India
elected from Enterprise)amongst
Director
shareholders 2.Hindustan Photo
other than
Films Manufacturing
Central Gov- Company Ltd.
ernment
Nominee Director
of UTI AMC (P) Ltd.
3.Ind Bank Merchant
Banking services
Ltd

(29.07.2014 to 28.01.2015)
2. Shareholders / Investors Grievances
Committee
Board.
5. Special Committee for Monitoring
Large Value Frauds
Board.
Human Resources. (w.e.f.05.06.2012)
(w.e.f.14.03.2014
14.03.2012
to 13.03.2015
Sri K
1. Birla Ericson
Raghuraman Opticals Ltd.,
- Director and
Director
member in Audit
elected from Committee.
amongst
2. Nagarjuna
shareholders Agrichem Ltd.,
other than
- Director and
Central Gov- Member in Audit
ernment
Committee.
3. Can Bank Factors
Ltd., - Director and
Chairman in Audit
Committee.
4.Oriental Carbon &
Chemicals Ltd., Director
5.Centbank
Financial Services
Ltd.,- Director and
Member in Audit
Committee.
1. Management Committee of the

Board (01.04.2014 to 21.07.2014 &
22.01.2015 to 13.03.2015)
(28.06.2014 to 13.03.2015)
3. Shareholders and Investors
Grievances Committee.
Board.
5. Special Committee for monitoring
large value frauds.
6. Share Transfer Committee.
Committee
(30.08.2012 to 13.03.2015)
8. Steering Committee of the Board on
Human Resources (05.06.2012 to
13.03.2015)
14.03.2009
to 13.03.2012
145
1. Shareholders and Investors

Grievances Committee
(from 28.06.2014)
*14.03.2012
to
13.03.2015
)re-elected*(
6.
-

7. .

8. -

9.
.. -

1. . 1.
(23.09.2014 12.03.2015)
(, )
2.\\

2.

(,
(01.04.2014 13.03.2015)
)
3.
3.
4.\

14.03.2012
13.03.2015
3.
] , /
\

3.1
, , ], ^/ ],
] ] , , , \

, , ] , \

15 ]
10.05.2014
02.08.2014
27.12.2014
24.05.2014
20.09.2014
30.01.2015
24.06.2014
30.10.2014
21.02.2015
28.06.2014
24.11.2014
12.03.2015
18.07.2014
05.12.2014
28.03.2015
146
6. Laddery Finance Ltd.Director and 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 Bhudhil Hydro
Electrical Pvt LtdDirector and Chairman
in Audit Committee.
Sri Nandlal L. Sarda
Director elected
2. Clearing Corporation
of India (Chairman, IT
Committee)
from amongst
shareholders
other than Central
Government
1. IDBI Intech Limited

(Member, Audit
Committee)
3. Cybertech Systems
and Software Ltd.
1. Management Committee
of the Board (23.09.2014 to
12.03.2015)
2. Spl. Committee for
Monitoring Large Value
Frauds. (01.04.2014 to
13.03.2015)
3. Remuneration Committee of
the Board
4. Information Technology
Strategy Committee
Information Technology
Strategy Committee
14.03.2012 to
13.03.2015
3. COMMITTEES OF THE BOARD OF DIRECTORS

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, two Executive Directors, Nominee Director of Reserve Bank of
India, Workmen Employee Director and two independent Non Official Directors.
In all 15 Meetings of the Committee were held during the year, on the following dates:
10.05.2014 02.08.2014 27.12.2014
24.05.2014
20.09.2014
30.01.2015
24.06.2014
30.10.2014
21.02.2015
28.06.2014
24.11.2014
12.03.2015
18.07.2014
05.12.2014
28.03.2015
147
] \

01.04.2014 31.03.2015
15
15
..
01.04.2014 31.03.2015

15
15
13.03.2015 31.03.2015
01
01
..

01.04.2014 30.04.2014
04.04.2014 31.03.2015
15
09
13.05.2014 12.11.2014
18.02.2015 31.03.2015
10
09
.
-
01.04.2014 28.07.2014
29.01.2015 31.03.2015
09
06
22.07.2014 21.01.2015
14.03.2015 31.03.2015
07
07
07
04
] \
01.04.2014 22.09.2014
- ( )

-
01.04.2014 12.05.2014
13.11.2014 t 17.02.2015
05
05
]

\
27.07.2014 28.01.2015
06
05
01.04.2014 21.07.2014
22.01.2015 13.03.2015
08
08
23.09.2014 13.03.2015
07
06
.

\

\
3.2
] \ , ]
, ..

8

09.05.2014
20.09.2014
30.01.2015

28.06.2014
30.10.2014
12.03.2015

02.08.2014
27.12.2014
148

The attendance of the Members at the Management Committee (MC) meetings along with the number of meetings
held during the period is given below in the table:
No. of M.C. Meetings held

during the period
No. of M.C. Meetings

attended
01.04.2014 to 31.03.2015
15
15
01.04.2014 to 31.03.2015
15
15
13.03.2015 to 31.03.2015
01
01
01.04.2014 to 30.04.2014
Nil
NA
04.04.2014 to 31.03.2015
15
09
13.05.2014 to 12.11.2014
18.02.2015 to 31.03.2015
10
09
01.04.2014 to 28.07.2014
29.01.2015 to 31.03.2015
09
06
22.07.2014 to 21.01.2015
14.03.2015 to 31.03.2015
07
07
Official Director
01.04.2014 to 22.09.2014
07
04
01.04.2014 to 12.05.2014
13.11.2014 to 17.02.2015
05
05

Sri G.R. Sundaravadivel,
27.07.2014 to 28.01.2015
06
05
01.04.2014 to 21.07.2014
22.01.2015 to 13.03.2015
08
08
23.09.2014 to 13.03.2015
07
06
Sri C.VR. Rajendran
Period

Sri S.K. Kalra
Executive Director
Sri Ajit Kumar Rath
Executive Director
Sri K.K. Misra
Executive Director
Sri E.E. Karthak
Workmen Employee Director
Dr. Naina Sharma
Sri Amit Goel, Part-time Non-

)CA Category
Sri N.V.R. Reddy
Director
shareholders other than
Central Government
Sri. K. Raghuraman
Central Government
Sri Nandlal L Sarda, Director
Central Government
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 Directors. One of the Independent Non-Official Directors chairs the meetings of the Audit
Committee.
The Committee met 8 times during the year under review, on the following dates:
09.05.2014 20.09.2014 30.01.2015
28.06.2014 30.10.2014 12.03.2015
02.08.2014
27.12.2014
149
\ ]
, \ / ]

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

] -

] \
- ( )
(01.04.2014 27.06.2014 )
-
( )
01
01
..

(01.04.2014 31.03.2015)
08
08
]

(13.03.2015 31.03.2015)
..

(01.04.2014 30.04.2014 )

(01.04.2014 31.03.2015)
08
07

(01.04.2014 31.03.2015)
/ -
08
05

\
(14.03.2015 31.03.2015 )
/ -/

( )
]

\
(14.03.2015 31.03.2015 )
/ -/

\
(28.06.2014 13.03.2015 )
/ - /

( )
07
07
]

\
(01.04.2014 13.03.2015 )
/ - /

08
07
150

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, follows 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 all branches with unsatisfactory ratings. It also reviews inter branch adjustment accounts, unreconciled long outstanding entries in inter bank accounts
besides reviewing the position of housekeeping.
The attendance of Members at the Audit Committee meetings along with the number of meetings held during the period is
given below in the table:
Type of Director
Number of Audit Committee

meetings held during the period
of their tenure
Number of meetings
attended

Part-time Non-Official Director (CA
Category)
(From 01.04.2014 to 27.06.2014)

(Chairman of the Committee)
01
01
Sri S.K. Kalra,

Executive Director (From
01.04.2014 to 31.03.2015)
Member
08
08
Sir Ajit Kumar Rath,

Executive Director
(From 13.03.2015 to 31.03.2015)
Member
Nil
NA
Sri K.K. Misra

Executive Director
(From 01.04.2014 to 30.04.2014)
Member
Nil
NA
Sri Anandrao Vishnu Patil, Govt. of

India Nominee Director
(From 01.04.2014 to 31.03.2015)
Member / Non Executive
08
07
Sri E.E. Karthak

(From 01.04.2014 to 31.03.2015)
Member / Non Executive
08
05
Sri A. Krishnakumar
shareholders other than Central
Government (From 14.03.2015 to
31.03.2015)
Member / Non Executive /

Independent Director
Nil
NA
Sri G. Sivakumar
31.03.2015)

Nil
NA
Sri K. Raghuraman
13.03.2015)

07
07

13.03.2015)

08
07
151
3.3 ] ()
] ] ] , ]
, 28.06.2001 ] , ,
\, ] ] ]
\\
] 3

18.07.2014
05.12.2014
28.03.2015
] ] .

] ]

(01.04.2014 31.03.2015)
03
03
..

(01.04.2014 31.03.2015)
03
03
(13.03.2015 31.03.2015)
01
01
..

(01.04.2014 30.04.2014)
(01.04.2014 31.03.2015)
03
00
(14.03.2015 31.03.2015 )
01
01
]

\
(14.03.2015 31.03.2015 )
01
01
]

\
(01.04.2014 13.03.2015)
02
01
(01.04.2013 13.03.2015)
02
02
.

\
3.4

]\
, 5 1. ], (01.04.2014 31.03.2015)
2. .., (01.04.2014 31.03.2015)
152

3.3 Risk Management Committee of the 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. Presently, the Committee is constituted with the Chairman & Managing Director, Executive
Directors, Govt. of India Nominee Director and two other Directors. The Committee met three times during the year and
discussed various matters relating to operational, market and credit risks of the Bank.
The Risk Management Committee met three times during the year on the following dates:
18.07.2014
05.12.2014
28.03.2015
The attendance of the members at the Risk Management Committee meetings along with the number of meetings held
during the period of their tenure is given below in the table:
Type of Director
Number of Risk Management

Committee meetings held
during the period of their
tenure
Number of meetings attended
Sri C.VR. Rajendran

Chairman
From 01.04.2014 to 31.03.2015
03
03
Sri S.K. Kalra, Executive

Director
Member
From 01.04.2014 to 31.03.2015
03
03
Sri Ajit Kumar Rath, Executive

Director
Member
From 13.03.2015 to 31.03.2015
01
01
Sri K.K. Misra

Executive Director
Member
From 01.04.2014 to 30.04.2014
Nil
NA

Govt. of India Nominee
Director
Member
From 01.04.2014 to 31.03.2015
03
00
Sri A. Krishnakumar
Central Government
Member
From 14.03.2015 to 31.03.2015
01
01
Sri G. Sivakumar
Central Government
Member
From 14.03.2015 to 31.03.2015
01
01

Central Government
Member
From 01.04.2014 to 13.03.2015
02
01
Sri K Raghuraman
Central Government

Member
From 01.04.2014 to 13.03.2015
02
02

3.4 Departmental Promotion Committee of the Board:
Departmental Promotion Committee of the Board is constituted in terms of Govt. of India directives to specifically look into
the Review of the position of disposal of vigilance disciplinary cases and Departmental Enquiries in the Bank.
Presently, the Committee consists of 5 Directors:
1. Sri C.VR. Rajendran, Chairman & Managing Director (From 01.04.2014 to 31.03.2015)
2. Sri S.K. Kalra, Executive Director (From 01.04.2014 to 31.03.2015)
153
3. ] , (13.03.2015 31.03.2015)
4. .., (01.04.2014 30.04.2014 )
5. , (01.04.2014 31.03.2015)
6. . ., (01.04.2014 31.03.2015)
09.05.2014
]

01
01
..

01
01
..

01
01
01
01
3.5 \\
{ . 1.00
, \\ ,
, 5 1. ], (01.04.2014 31.03.2015 )
2. , (01.04.2014 31.03.2015 )
3. , (14.03.2015 31.03.2015 )
4. ] , (01.04.2014 13.03.2015 )
5. , (01.04.2014 13.03.2015 )
6. , (01.04.2014 13.03.2015 )
7. , (14.03.2015 31.03.2015 )
8. , (14.03.2015 31.03.2015 )
.28.06.2014 .05.12.2014 2 ]
154

3. Sri Ajit Kumar Rath, Executive Director (From 13.03.2015 to 31.03.2015)
4. Sri K.K. Misra, Executive Director (From 01.04.2014 to 30.04.2014)
5. Sri Anandrao Vishnu Patil, Govt. of India Nominee Director (From 01.04.2014 to 31.03.2015)
6. Sri E.E. Karthak, RBI Nominee Director (From 01.04.2014 to 31.03.2015)
The Committee met one time during the year on 09.05.2014.

The attendance of the members at the Departmental Promotion Committee meetings along with the number of meetings
held during the period of their tenure during the year is given below in the table:
Type of Director
Number of D.P.C. meetings

held during the period
Sri C.VR. Rajendran

Chairman & Managing
Director
Chairman
01
01
Sri S.K. Kalra

Executive Director
Member
01
01
Sri Ajit Kumar Rath

Executive Director
Member
Nil
NA
Sri K.K. Misra

Executive Director
Member
Nil
NA
Sri Anandrao Vishnu Patil,

Director
Member
01
01
Sri E.E. Karthak, RBI

Nominee Director
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 directives of Reserve Bank of India to specifically look into monitoring and following up the cases of frauds involving an amount of `1.00
crore & above exclusively.
Presently, the Committee consists of 5 Directors:1.
Sri C.VR. Rajendran, Chairman & Managing Director (From 01.04.2014 to 31.03.2015)
2.
Sri Anandrao Vishnu Patil, Govt. of India Nominee Director (From 01.04.2014 to 31.03.2015)
3.
Sri A. Krishnakumar, Director (From 14.03.2015 to 31.03.2015)
4.
Sri G.R. Sundaravadivel, Director (From 01.04.2014 to 13.03.2015)
5.
Sri K. Raghuraman, Director (From 01.04.2014 to 13.03.2015)
6.
Sri Nandlal L Sarda, Director (From 01.04.2014 to 13.03.2015)
7.
Sri K. Thamaraiselvan, Director (From 14.03.2015 to 31.03.2015)
8.
Dr. Naina Sharma, Director (From 14.03.2015 to 31.03.2015)
The Committee met two times during the year on 28.06.2014 and 05.12.2014.
155
\\ ]

]

01.04.2014 31.03.2015
] \\

02

02

01.04.2014 31.03.2015
02
01
,

\

14.03.2015 31.03.2015
]..,

\

01.04.2014 13.03.2015
02
02

01.04.2014 13.03.2015
02
02

01.04.2014 13.03.2015
02
02
,

\

14.03.2015 31.03.2015
.
-

14.03.2015 31.03.2015
3.6 ( )3.6.1 -
\ 49

, 4 ,
1. ] , \ (14.03.2015 31.03.2015 )
2. , ( \ ) (01.04.2014 13.03.2015 )
3. ] , \ (01.04.2014 13.03.2015 )
4. , (01.04.2014 31.03.2015 )
5. ] , (13.03.2015 31.03.2015 )
6. , (01.04.2014 30.04.2014 )
7. , (14.03.2015 31.03.2015 )
156

The attendance of the members at the Meetings of Special Committee for Monitoring Large Value Frauds along with the
number of meetings held during the period of their tenure during the year is given below in the table:
Type of Director
Number of Special Committee for Monitoring Large

Value Frauds meetings
held during the period
Sri C.VR. Rajendran

Chairman & Managing
Director
Chairman
From 01.04.2014 to
31.03.2015
02
02

Director
Member
From 01.04.2014 to
31.03.2015
02
01
Sri A. Krishnakumar
Director, Elected from
amongst shareholders
other than Central Govt.
Member
From 14.03.2015 to
31.03.2015
Nil
NA

other than Central Govt
Member
From 01.04.2014 to
13.03.2015
02
02
Sri K. Raghuraman
Member
From 01.04.2014 to
13.03.2015
02
02
Sri Nandlal L Sarda

Member
From 01.04.2014 to
13.03.2015
02
02
Workmen Employee
Director
Member
From 14.03.2015 to
31.03.2015
Nil
NA
Dr. Naina Sharma

Member
Nil
NA
Part- time nonofficial
From 14.03.2015 to
Director
31.03.2015

3.6 Shareholders & Investors Grievances Committee (Now termed as Stakeholders Relationship 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 & Investors Grievances. In pursuant to revised clause 49 of the Listing
Agreement, the nomenclature of the Committee has been changed from Shareholders & Investors Grievances Committee
to Stakeholders Relationship Committee.
Presently, the Committee consists of 4 Directors i.e.
1.
Sri G. Sivakumar, Director elected from amongst shareholders other than Central Government (From 14.03.2015
to 31.03.2015)
2.
Sri K Raghuraman, Chairman of the Committee, (Director elected from amongst Shareholders other than Central
Government) (From 01.04.2014 to 13.03.2015).
3. Sri G.R. Sundaravadivel, Director elected from amongst shareholders other than Central Government (From
01.04.2014 to 13.03.2015)
4.
Sri S.K. Kalra, Executive Director (From 01.04.2014 to 31.03.2015)
5.
Sri Ajit Kumar Rath, Executive Director (From 13.03.2015 to 31.03.2015)
6.
Sri K.K. Misra, Executive Director (From 01.04.2014 to 30.04.2014)
7.
Dr. Naina Sharma, Director (From 14.03.2015 to 31.03.2015)
157
\ 10.05.2014, 18.07.2014, 05.12.2014 21.02.2015 \ ]

]

] , /

\ (14.03.2015

.,
01.04.2014 13.03.2015
04
04
]..
\
(01.04.2014 13.03.2015 )
04
02
.. ,
/
01.04.2014 31.03.2015
04
04
] ,
/
(13.03.2015 31.03.2015 )

/
(01.04.2014 30.04.2014
.
/
(14.03.2015 )
3.6.2 ] \ , 47 , ] ] \
] , \
3.6.3 ] , / 4741/17
31.03.2015

3.7
]
1. , , (01.04.2014 31.03.2015 )
2. ] , , (13.03.2015 31.03.2015 )
3. , , (01.04.2014 30.04.2014 )
4. ] , (14.03.2015 31.03.2015 )
5. , (01.04.2014 13.03.2015 )
6. , (09.05.2014 31.03.2015 )
158

The Stakeholders Relationship Committee met four times during the current year i.e., on 10.05.2014, 18.07.2014,
05.12.2014 and 21.02.2015 and reviewed the position of the complaints.
Type of Director
No. of Meetings of Stakeholders Relationship Committee

Held during the tenure
Attended
Sri G. Sivakumar
Chairman of the Committee /
Government (From 14.03.2015)
Nil
NA
Sri K Raghuraman
Chairman of the Committee
From 01.04.2014 to 13.03.2015
04
04

Government
(From 01.04.2014 to 13.03.2015)
04
02
Sri S.K. Kalra,

Member / Executive Director
From 01.04.2014 to 31.03.2015
04
04
Sri Ajit Kumar Rath,

From 13.03.2015 to 31.03.2015
Nil
NA
Sri K.K. Misra

From 01.04.2014 to 30.04.2014
Nil
NA
Dr. Naina Sharma

Member / Director
(From 14.03.2015)
Nil
NA
3.6.2 In terms of Clause 47 of the Listing Agreement entered into with Stock Exchanges, Mr. Y. Amarnath, 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, during the year under
review was 4741 / 17 respectively.
Position as on 31.03.2015:
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 the Board

Share Transfer committee is being constituted from time to time with the following members:

1.
2.
3.
4.
5.
6.
Sri S.K. Kalra, Executive Director, Chairman of the Committee (From 01.04.2014 to 31.03.2015)
Sri Ajit Kumar Rath, Executive Director, Member (From 13.03.2015 to 31.03.2015)
Sri K.K. Misra, Executive Director, Member (From 01.04.2014 to 30.04.2014)
Sri G. Sivakumar, Director (From 14.03.2015 to 31.03.2015)
Sri K. Raghuraman, Director (From 01.04.2014 to 13.03.2015)
Sri Amit Goel, Director (From 09.05.2014 to 31.03.2015)
159
2014-2015 96 42,100 2014-15

.10.05.2014, 18.07.2014, 05.12.2014 21.02.2015 ] ] 1
]

..
(01.04.2014
31.03.2015)

04
04
]
/
(13.03.2015 31.03.2015 )
..
/
(01.04.2014 30.04.2014 )
]
/ \
(14.03.2015 31.03.2015 )

/ \
(01.04.2014 13.03.2015)
04
04

/
(01.04.2014 31.03.2015)
04
04
] ] ]\
/\ ]
31.03.2015
3.8
() 20/1/2005- , 09.03.2007 . 24.03.2007
]
]
\ 31 \

,
, / .
.14.03.2015 1. , , (01.04.2014 31.03.2015 )
2. , (01.04.2014 31.03.2015 )
3. , (14.03.2015 31.03.2015 )
4. ] , (14.03.2015 31.03.2015 )
5. ] , (01.04.2014 13.03.2015 )
6. , (01.04.2014 13.03.2015 )
. 02.08.2014 ,
160

The committee confirmed 96 share transfers aggregating 42,100 shares during the year 2014-15. The Share Transfer Committee met four times during the year 2014-15 on 10.05.2014, 18.07.2014, 05.12.2014 and 21.02.2015. The Bank ensures
that all the transfers are duly effected with in a period of 15 days from the date of their lodgment.
Type of Director
No. of Meetings of Stakeholders Relationship Committee

Attended
Sri S.K. Kalra,

Chairman of the Committee /
Executive Director
From 01.04.2014 to 31.03.2015
04
04

(From 13.03.2015 to 31.03.2015)
Nil
NA
Sri K.K. Misra

From 01.04.2014 to 30.04.2014
Nil
NA
Sri G. Sivakumar
Member / Director elected from
amongst shareholders other than
Central Government
(From 14.03.2015 to 31.03.2015)
Nil
NA
Sri K. Raghuraman,
Member / Director elected from
amongst shareholders other than
Central Government
(From 01.04.2014 to 13.03.2015)
04
04
Sri Amit Goel

Member / Director
(From 01.04.2014 to 31.03.2015)
04
04
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
31.03.2015.
3.8 Remuneration Committee of the Board:
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 14.03.2015 with the following members:

1. Sri Anandrao Vishnu Patil, GOI Nominee Director (Chairman of the Committee) (From 01.04.2014 to 31.03.2015)

2. Sri E.E. Karthak, RBI Nominee Director (From 01.04.2014 to 31.03.2015)

3. Sri A. Krishnakumar, Director (From 14.03.2015 to 31.03.2015)

4. Sri G. Sivakumar, Director (From 14.03.2015 to 31.03.2015)

5. Sri G.R. Sundaravadivel, Director (From 01.04.2014 to 13.03.2015)

6. Sri Nandlal L Sarda, Director (From 01.04.2014 to 13.03.2015)
The committee met on 02.08.2014 and Sri Anandrao Vishnu Patil, GOI Nominee Director along with other members
attended the meeting
161
3.9
30.11.2007 - - ]

18.02.2015 -
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162

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
and the following are present Directors:
The Committee was reconstituted w.e.f. 18.02.2015.

1. Sri Anandrao Vishnu Patil, (Chairman of the Committee) GOI Nominee Director (From 01.04.2014 to 31.03.2015)
2. Dr. Naina Sharma, Part-time Non-Official Director (From 01.04.2014 to 31.03.2015)
3. Sri Amit Goel, Director (From 18.02.2015 to 31.03.2015)
4. Sri N.V.R. Reddy, Part-time Non-Official Director (From 01.04.2013 to 28.07.2013) & (From 01.04.2014 to
17.02.2015)
The committee met on 20.02.2015 and Sri Anandrao Vishnu Patil, GOI Nominee Director along with other members
attended the meeting.
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 was
re-constituted on 14.03.2015.
The committee met four times during the year 2014-15 i.e., on 05.04.2014; 20.09.2014; 05.12.2014 and 21.02.2015.
The attendance of the members at the meetings of Information Technology Strategy Committee along with the number of
meetings held during the period of their tenure during the year is given below in the table:
Type of Director
Sri Nandlal L Sarda
No. of Meetings of Information Technology Strategy Committee

Attended
04
04
04
04
Nil
NA
04
04
04
04
Nil
NA
04
04
Chairman Of the Committee

From 01.04.2014 to 13.03.2015
Sri S.K. Kalra, Executive Director
From 01.04.2014 to 31.03.2015
Executive Director
From 13.03.2015 to 31.03.2015
Sri K. Raghuraman, Director
From 01.04.2014 to 13.03.2015
Sri Amit Goel, Director
From 01.04.2014 to 31.03.2015
Sri G. Sivakumar, Director
From 14.03.2015 to 31.03.2015
General Manager (IT)
(Chief Information Officer)
163
3.11
, , ] ] \ . 05.12.2011 , .02.02.2012

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2014-15 43

08.04.2014
26.08.2014
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12.09.2014
23.01.2015

23.04.2014
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27.01.2015

05.05.2014
18.09.2014
03.02.2015

14.05.2014
22.09.2014
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31.05.2014
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10.06.2014
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16.06.2014
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12.11.2014
16.03.2015

30.06.2014
19.11.2014
18.03.2015

09.07.2014
28.11.2014
27.03.2015

16.07.2014
10.12.2014
30.03.2015

26.07.2014
19.12.2014
31.03.2015

08.08.2014
27.12.2014

13.08.2014
31.12.2014
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01.04.2014 31.03.2015
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01.04.2014 31.03.2015
43
42
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13.03.2015 31.03.2015
05
04
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( )
01.04.2014 30.04.2014
03
02
164

3.11 Credit Approval Committee of the Board:
The Credit Approval Committee of the Board was constituted on 02.02.2012 in terms of Gazette 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 43 times during the year 2014-15 on the following dates:
08.04.2014
26.08.2014 14.01.2015
15.04.2014
12.09.2014 23.01.2015
23.04.2014
13.09.2014 27.01.2015
05.05.2014
18.09.2014 03.02.2015
14.05.2014
22.09.2014 09.02.2015
31.05.2014
26.09.2014 18.02.2015
10.06.2014
08.10.2014 25.02.2015
16.06.2014
22.10.2014 05.03.2015
25.06.2014
12.11.2014 16.03.2015
30.06.2014
19.11.2014 18.03.2015
09.07.2014
28.11.2014 27.03.2015
16.07.2014
10.12.2014 30.03.2015
26.07.2014
19.12.2014 31.03.2015
08.08.2014
27.12.2014
13.08.2014
31.12.2014
The attendance of the members at the Credit Approval Committee of the Board meetings along with the number of meetings held during the period of their tenure during the year is given below in the table:
Type of Director
No. of Meetings of Sub-Committee for Credit Approval Committee

Attended
Sri C. VR. Rajendran

Chairman (Chairman & Managing
Director)
From 01.04.2014 to 31.03.2015
43
43
Sri S.K. Kalra,

Member (Executive Director)
From 01.04.2014 to 31.03.2015
43
42

From 13.03.2015 to 31.03.2015)
05
04
Sri K K Misra
From 01.04.2014 to 30.04.2014
03
02
165
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14.03.2015
. 09.05.2014 30.01.2015 ]
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02
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14.03.2015 31.03.2015
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02
01
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01.04.2014 13.03.2015
02
02
,
14.03.2015 31.03.2015
3.13
.28.11.2012

2014-15 . 09.05.2014; 24.05.2014 20.02.2015
166

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 directives 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 14.03.2015.
The Committee met two times during the year on 09.05.2014 and 30.01.2015.
The attendance of the members at the meetings of the Steering Committee of the Board on Human Resources Management
along with the number of meetings held during the period of their tenure during the year is given below in the table:
Type of Director
No. of Meetings of Steering Committee of the Board on Human Resources

Management
Attended
Sri C.VR. Rajendran

Chairman (Chairman & Managing
Director)
From 01.04.2014 to 31.03.2015
02
02
Sri S.K. Kalra,

From 01.04.2014 to 31.03.2015
02
02

From 13.03.2015 to 31.03.2015
Nil
NA
Sri K K Misra
Member(Executive Director)
From 01.04.2014 to 30.04.2014
Nil
NA
Sri Anandrao Vishnu Patil, GOI Nominee Director

From 01.04.2014 to 31.03.2015
02
02
Sri A. Krishnakumar, Director

From 14.03.2015 to 31.03.2015
Nil
NA
Sri G.R. Sundaravadivel, Director

From 01.04.2014 to 13.03.2015
02
01
Sri K. Raghuraman, Director

From 01.04.2014 to 13.03.2015
02
02
Dr. Naina Sharma, Director

From 14.03.2015 to 31.03.2015
Nil
NA
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 2014-15 on 09.05.2014; 24.05.2014 and 20.02.2015.
167
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The attendance of the members at the Meetings of the Committee for Monitoring of Recovery in NPAs along with the
number of meetings held during the period of their tenure during the year is given below in the table:

Type of Director
No. of Meetings of Committee for Monitoring of Recovery in NPAs

Attended
Sri C.VR. Rajendran

Chairman(Chairman & Managing
Director)
(From 01.04.2014 to 31.03.2015)
03
03
Sri S.K. Kalra,

(From 01.04.2014 to 31.03.2015)
03
03

(From 13.03.2015 to 31.03.2015
Nil
NA
Sri K K Misra
Member(Executive Director)
(From 01.04.2014 to 30.04.2014)
Nil
NA
Sri Anandrao Vishnu Patil, GOI Nominee Director

(From 01.04.2014 to 31.03.2015)
03
03
3.14 Customer Service Committee:

The Committee of the Board on Customer Service is constituted in the Bank, in terms of RBI Master Circular on review of
Customer Service.
The Committee was reconstituted with the following members w.e.f. 18.02.2015:
1. Shri C.VR. Rajendran, Chairman & Managing Director, Chairman of the Committee (From 01.04.2014 to
31.03.2015)
2. Shri Amit Goel (From 01.04.2014 to 31.03.2015)
3. Dr. Naina Sharma (From 23.09.2014 to 31.03.2015)
4. Shri Pankaj Chaturvedi, Director (From 01.04.2014 to 22.09.2014)
5. Shri N.V.R. Reddy, Director (From 01.04.2014 to 17.02.2015)
6. Shri K. Thamaraiselvan (From 18.02.2015 to 31.03.2015)
7. Shri G.R. Sundaravadivel, Director (From 01.04.2014 to 13.03.2015)
The Committee met on 30.10.2014 to review and deliberate on Customer Service. Shri C.VR. Rajendran, Chairman &
Managing Director chaired the Committee meeting. All the members had attended the meeting.
3.15 Exclusive Board Meeting to Review Customer Service:
In terms of RBI Master Circular on Review of Customer Service, an Exclusive Board Meeting was convened on 28.03.2015
to review and deliberate on Customer Service. Shri C.VR. Rajendran, Chairman & Managing Director chaired the Committee meeting. All the members of the Board had attended the meeting.
4. Meeting of Independent Directors:
As per the amendments in the Listing Agreement which was effective from October, 2014, under Clause 49 Corporate
Governance, separate Meetings of the Independent Directors of the Bank shall be convened at least one meeting in a year,
without the attendance of non-independent directors and members of Management. All the independent directors of the
Company shall strive to be present at such meeting.
The meeting shall review the Performance of non-independent directors and the Board as a whole, review the performance
of the Chairman of the Bank, taking into account the views of executive Directors and non-executive directors, assess the
169
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quality, quantity and timeliness of flow of information between the Bank Management and the Board that is necessary for
the Board to effectively and reasonably perform their duties.
In accordance to the above amendment, a Meeting of Independent Directors was convened on 20th February, 2015.
The following independent Directors attended the Meeting:
i. Shri G.R. Sundaravadivel,
ii. Shri K. Raghuraman,
iii. Shri Nandlal L Sarda
5.
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)
5.1. Credit Risk Management Committee (CRMC)

6.2. Internal Capital Adequacy Assessment Committee (ICAAP)
7.3. RBS Executive Committee
The details of these Committees and their functions are mentioned in brief hereunder:
5.1 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.
General Manager (IRMD)
d.
General Manager (Corporate Planning)
e.
General Manager (Treasury, Mumbai)
f.
DGM/AGM/CM/(IRMD)- Convener
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 70 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.
171
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5.2 Operational Risk Management Committee(ORMC)
a.
Chairman and Managing Director [Head of the Committee]
b.
Executive Directors
c.
General Manager (IRMD / CMRD)
d.
General Manager (I & A)
e.
General Manager (Operations)
f.
General Manager (DIT)
g.
General Manager (HR)
h.
DGM/AGM/CM (IRMD) Convener
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 four times (10.06.2014, 17.07.2014, 27.11.2014 and 09.02.2015) during the year.
5.3 Investment Committee (IC)

a. Chairman and Managing Director [Head of the Committee]
b. Executive Directors
c. Chief General Manager
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.
173
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05.05.2014
21.05.2014
27.05.2014
19.06.2014
22.08.2014
12.09.2014
24.09.2014
27.11.2014
06.01.2015
02.02.2015
09.02.2015
10.03.2015
174

5.4 Risk Based Supervision Committee (RBSC)

c. General Manager (IRMD / CMRD)
d. General Manager (I & A)
e. General Manager (Operations)
f. General Manager (DIT)
g. General Manager (HR)
h. DGM/AGM/CM (IRMD) Convener

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 (10.06.2014, 17.07.2014, 27.11.2014 and 09.02.2015) during the year.
5.5 Credit Risk Management Committee (CRMC)

c. General Manager (Credit)
d. General Manager (IRMD/CMRD)
e. General Manager (Priority Sector Policy)
f. General Manager (MSME)
g. General Manager (Retail Credit)
h. Dy.GM / AGM / CM (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/RMC. 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 twelve times during the year on the following dates:
05.05.2014
21.05.2014
27.05.2014
19.06.2014
22.08.2014
12.09.2014
24.09.2014
27.11.2014
06.01.2015
02.02.2015
09.02.2015
10.03.2015
175
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176

5.6 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 two times (22.05.2014 and 06.01.2015) during the year.
5.7 RBS Executive Committee
The Committee newly formed on 09.02.2015.
The members of the Committee are as follows:
a. Executive Directors (Chairman of the Committee)
b. General Manager (IRMD)
c. General Manager (I & A)
d. General Manager (Large Corp Dept.)
e. General Manager (DIT)
f. General Manager (IIB & Accounts)
g. General Manager (HR)
The committee will oversee the implementation of the RBS project and to provide the required resources to the RBS Cell.
The committee will also review the progress of the data collection, customization, sanitization and compilation and will recommend to RBSC for approving the submission of the data to RBI as per the timelines prescribed.
The Committee met one time i.e. on 11.03.2015.
177
6.
6.1
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05.07.2012
03.30 ]

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22.07.2013
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12.03.2015
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178

6. General Body Meetings
6.1 Annual General Meeting
The details of previous three Annual General Meetings (AGM) of shareholders are as follows:
General Body Meeting
Date
Time
Venue
Twelfth AGM
05.07.2012
03.30 PM
Shilpakala Vedika, Shilpa Ramam, Crafts Village,

Near HiTech City, Madhapur, Hyderabad 500 081
Thirteenth AGM
22.07.2013
04.00 PM
Ravindra Bharathi, Saifabad, Hyderabad500004
Fourteenth AGM
18.07.2014
02.30 PM
Sri Sathya Sai Nigamagamam, 8-3-987/2,

Sri Nagar Colony, Hyderabad-500 073.
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.
6.2 Extraordinary General Meeting
The details of Extraordinary General Meeting of the shareholders held during the last 3 years are as follows:
Date
Time
Venue
Purpose
19.12.2013
11.00 AM

Sri Nagar Colony, Hyderabad 500 073.
To issue and allot 3,00,34,539 equity shares to Government of

India on preferential basis.
12.03.2015
11.30 AM

Sri Nagar Colony, Hyderabad 500 073.
Raising of capital by issuance of 1,32,31,888 equity shares by

way of preferential allotment to Government of India.
7.1. 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 matters related
to capital markets 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 31.03.2015 as per Accounting Standards-18 issued by the Institute of
Chartered Accountants of India, New Delhi.
The Directors and Senior Management personnel abide 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(IX) of the Listing Agreement is attached to the Corporate Governance
Report.
The number of shares as on 31.03.2015 held by Non Executive Directors is furnished below:

1.
Sri A. Krishnakumar
100 shares

2.
Sri G. SivaKumar
100 shares
All other Non Executive Directors do not hold equity shares of the Bank.
179
7.2 2014-15 *

]

1924412
--
(13.12.2013 31.03.2015)
( )

..
2013-14
179160

-
(01.04.2013 31.08.2013)
--
2013-14
251520
..
-
(01.04.2014 30.04.2014)
158608
--
2013-14
400000
..

(01.04.2014 31.03.2015)
1706510
--
2013-14
400000
]

(13.03.2015 31.03.2015)
82466
--
2013-14
--

\
(25.11.2013 31.03.2015)
654000
30000
2013-14
--
* ,
-/ , , , - /
, ] - ]
- www.andhrabank.co.in -
8. \
], ] \ , ]
, ] \ 2014-2015
, \ www.andhrabank.in
] ] ,
] ]
, \\
] \ ,
]
]
{ , { , , , , , {
], , ] , , ,

180

7.2 Details of remuneration* paid to the Directors for the Financial year 2014-15

Director
Salary
(Amount in `)
Sitting
Fees
Period FY
Amount
1924412
--
2013-14
179160
--
2013-14
251520
Sri K K Misra
Ex-Executive Director
(01.04.2014 to 30.04.2014)
158608
--
2013-14
400000
Sri S K Kalra
Executive Director
(01.04.2014 to 31.03.2015)
1706510
--
2013-14
400000
Sri Ajit Kumar Rath

Executive Director
(13.03.2015 to 31.03.2015)
82466
--

2013-14
--
Sri Thamaraiselvan
Workmen Employees Director
(25.11.2013 to 31.03.2015)
654000
30000
2013-14
--
Sri C VR Rajendran
(13.12.2013 to 31.03.2015)
Sri B A Prabhakar
Ex-Chairman & Managing Director (01.04.2013 to 31.08.2013)
Performance based Incentive
* The remuneration includes Salary, benefits, perquisites etc.

The Non-Executive/ Independent Directors are not being paid any remuneration, except the Sitting Fees, travelling and
halting expenses for attending the meetings of the Board/ Committees as per the guidelines of Government of India.
The sitting fees are paid as per Government of India Directives.
The Policy formulated by the Bank on Related Party Transactions is available on the Banks website: www.andhrabank.in
under the tab Investors Corner.
8. 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 2014-15 were
published in the leading newspapers. The results were also made available on the Banks website www.andhrabank.in.
The Annual Report is sent to all the shareholders of the Bank. 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 news papers mainly cover the Financial Results and
Notices:
English
Business Standard, Business Line, Financial Express, Indian Express, Mint, Economic Times, Hans India
and News Boom
Telugu
Andhra Jyothi, Andhra Prabha, Prajashakti, Vaartha, Andhra Bhoomi, Vishaalandhra and Udayabharatam
Hindi
Milap and Swatantra Vaartha
181
9. ]
\ ] ] 31.03.2015 2507 , 2232 32 \

] \

. \] 532418
25 , ] ]]

/ ANDBKDM
, -400 001,
. \] ,
\] ],
,
, - 400 051.
/ ANDHRABANK
31.03.2015
9.1
\
] () ] () ()
.

- INE434A01013
- INE434A01013
\ 31, 2015 2,17,447 34,240 1,83,207

60,28,46,791 36,78,46,791 23,50,00,000 ]
31 \ 2015 ] ( ) 95.13% 4.87% . 25.03.2015
1,32,31,888 ]
, 2.68% 97.32%
9.2. ()
] , ] , ] ]

, , , , , , , , \[, \, , , , , , ,
, , , , , , ], ], ], ], , , , , , , ,
, , , , , , \, , , ], \, , , , , \, ,
, , ,]
9.3. ()
(]) ] -
] ], ,
] ]

9.4
] 15
] ] ]
182

9. Shareholders Information
The Bank is a Scheduled Commercial Bank with the Head Office situated at Hyderabad. The Bank has its presence in 2507
branches, 2232 ATMs and 32 Zonal Offices as on 31.03.2015.
The Banks shares are listed on the following Stock Exchanges:

a. Bombay Stock Exchange Limited
Symbol: 532418

25th Floor, Phiroze Jeejeebhoy Towers
Stock Code/System: ANDBKDM

Dalal Street

Mumbai 400 001.

b. The National Stock Exchange of India Ltd. Stock Code/ Symbol:ANDHRABANK

Exchange Plaza

Bandra Kurla Complex

Bandra East, Mumbai 400 051.
The annual listing fee has been paid till 31.03.2015.
9.1 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 -- INE434A01013

CDSL -- INE434A01013
As on March 31, 2015, out of 2,17,447 shareholders of the Bank 34,240 shareholders hold the shares of the Bank under
physical mode and 1,83,207 shareholders hold the shares in demat form. Out of the total equity shares of 60,28,46,791 of
the Bank, 36,78,46,791 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, 2015, the public shareholding (incl. Govt. of India) in Electronic Form is 95.13% and 4.87% is in
physical form. The 1,32,31,888 equity shares allotted to Government of India on preferential basis as on 25.03.2015 is in
physical form and the same are later on converted into electronic form. Excluding the said present allotment, the physical
shares constitute 2.68% and dematerialized shares stand at 97.32%.
9.2 Electronic Clearing Services (ECS)
Electronic Clearing Services is a method by which payment of dividend etc. where the amount due to the investor can
directly be credited to his/her account. The bank has offered the services to the shareholders having account at the following
Centres:
Ahmedabad, Allahabad, Amritsar, Aurangabad, Bangalore, Baroda, Bhopal, Bhubaneswar, Chandigarh,
Chennai, Coimbatore, Dhanbad, Durgapur, Ernakulam, Erode, Goa, Guwahati, Gwalior, Haldia, Hubli,
Hyderabad, Indore, Jabalpur, Jaipur, Jammu, Jodhpur, Kakinada, Kanpur, Kolkata, Lucknow, Ludhiana,
Madurai, Mangalore, Mysore, Nagpur, Nellore, Nasik, NewDelhi, Patna, Pondicherry, Pune, Raipur, Rajkot,
Ranchi, Salem, Siliguri, Solapur, Surat, Tiruchirapalli, Tirupathi, Tiruvananthapuram, Trissur, Varanasi,
Vijayawada and Visakhapatnam.
9.3
Dividend payment by way of National Electronic Clearing Service(NECS)
The objective of the system is to facilitate centralized processing of payment of dividend. The NECS (credit) facilitate the
Issuer, multiple credits to beneficiary accounts which have been covered under Core-Banking Solution. For the purpose,
the shareholders have to update their bank account details by furnishing their CBS account number, MICR No., etc. to their
respective Depository Participants in case of dematerialized holdings and to the Registrars & Share Transfer Agents in case
of physical holdings. The NECS facilitates the shareholder to receive dividend in his account on the pay-out date itself.
9.4
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.
183
] ]
, ] ], ,
]
] ] ] ]
]

002, -, ] 5,
, ] , - 400009
. 022-40206020 / 22 / 23 24
. 022-40206021
- : mcssta.mumbai@gmail.com

\/\//
] ]

\

,
. ,
5-9-11, , 500004.
040 - 23230883, 040 - 23252371
mbd@andhrabank.co.in
9.5
, ], 25.03.2010
183 27,279

2014-15 286
19,285
]
10.
10.1
.
,

, 8 ], 2015 - 11.00 ], , 8-3-987/2,

, -500 073
10.2 ()

30 ] 2015
--- ] 2015
30 2015
--- 2015
31 2015
--- ] 2016
31 \ 2016
--- - 2016
184

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 Share Transer Agent 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 SHARE TRANSFER AGENT LIMITED
Unit: Andhra Bank
002, GROUND FLOOR
KASHIRAM JAMNADAS BLDG.,
5, P.DMELLO ROAD, MASJID EAST
MUMBAI - 400 009.
Ph. No. 022-40206020/22/23/24
Fax No. 022 -40206021
Contact Person: Mr. Uday Mogaveera
Email ID: mcssta.mumbai@gmail.com
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
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
9.5 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 2014-15, 286 equity shares were transferred from the account to the shareholders demat accounts on their
request. The number of unclaimed shares outstanding in the Suspense account, are 19285 shares.
The voting rights on these unclaimed shares shall remain frozen till the rightful owner of such shares, claims the shares.
10. Financial Calendar
10.1 Annual General Meeting of the Shareholders:
Particulars of the Fifteenth Annual General Meeting of the shareholders of the Bank:
Date, Time & Venue of the AGM
Wednesday, 08th July, 2015 at 11.00 AM at Sri Sathya Sai Nigamagamam,

8-3-987/2, Sri Nagar Colony, Hyderabad 500 073
10.2 Financial Calendar (Tentative)

Approval of quarterly results for the period ending:

June 30, 2015

September 30, 2015
December 31, 2015
March 31, 2016
-----
End of July, 2015

End of October, 2015
End of January, 2016
Audited Annual Accounts April, 2016
185
10.3 ()
02.07.2015 07.07.2015 ( )
10.4 /
, 1 ] 2015 2014-15 ,
17 ] 2015
( .27.04.2015 20 % ] 2014-2015 2/- ,
.17.07.2015 ]
11.1 31.03.2015

01
367846791
61.02
02
214040
78729898
13.06
03
1568
1596011
0.26
04
1631
11488197
1.91
05
29
22896174
3.80
06
/ /
39
71769409
11.90
07
102
47131459
7.82
08
36
1388852
0.23
217447
602846791
100.00
31 \ 2015 8.08 % (31 \ 2014 11.89%) ] ] 20%

31.03.2014
31.03.2015
1.
102 68000344 102 47131459
2.
1676 2108165 1568 1596011
1778 70108509 1670 48727470
11.2 ]/ / ] .
31.03.2015 \
..
01
61.0183
367846791
02
] ( 27 ] )
9.8188
59192545
03
. . (8 ] )
2.8072
16922979
04
] ]
1.0165
5993570
05
\ ]
0.9790
5772551
186

10.3 Date of Book Closure (Dividend)
Book Closure 02.07.2015 to 07.07.2015 (both days inclusive)
10.4 Cut-off date for ascertaining the shareholders / beneficiary owners for the purpose of receiving dividend.
The cut-off date for payment of dividend will be at the close of Business Hours on Wednesday, July 1st, 2015 and the
dividend payout date for FY 2014-15 will be Friday, July 17, 2015.
(Note: The Board of Directors of the Bank recommended Dividend on 27.04.2015 Rs. 2.00p per share (@ 20%)
for the financial year 2014-15, subject to shareholders approval, and the same will be paid on 17.07.2015)
11.1 SHARE HOLDING PATTERN AS ON 31.03.2015
Sl.
No.
Category
No. of Holders
No. of Shares
% to Shares
01
Government of India
367846791
61.02
02
General Public
214040
78729898
13.06
03
NRIs / OCBs
1568
1596011
0.26
04
Private Corporate Bodies
1631
11488197
1.91
05
Mutual Funds & UTI
29
22896174
3.80
06
Banks / Financial Institutions /

Insurance Cos
39
71769409
11.90
07
Foreign Institutional Investors
102
47131459
7.82
08
Others
TOTAL
36
1388852
0.23
217447
602846791
100.00
The total foreign shareholding as on 31st March, 2015 was 8.08 % (11.89% as on 31st March, 2014) 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
As on 31.03.2015
No. of shareholders
No. of shares
No. of shareholders
No. of shares
1.
Foreign Institutional Investors
102
68000344
102
47131459
2.
NRIs / OCBs
1676
2108165
1568
1596011
Total
1778
70108509
1670
48727470
11.2 Bank has not issued any GDRs/ADRs/Warrants or any convertible instruments
Top 5 shareholders of the Bank as on 31.03.2015
Sl.No
Name of the Investor
Percentage of
total holding
01
Government of India
02
Life Insurance Corporation of India

(incl. 27 other schemes)
03
Reliance Capital Trustee Co. Ltd (total

of investments under 8 schemes )
2.8072
16922979
04
GMO Emerging Markets Fund
1.0165
5993570
05
HDFC Standard Life Insurance Company Limited
0.9790
5772551
61.0183

9.8188
187
Total number of shares

367846791
59192545
12.1 31.03.2015

5000
185278
85.2060
309805090
5.1391
5001 -
10000
20049
9.2202
166519910
2.7622
10001 -
20000
7582
3.4868
107254240
1.7791
20001 -
30000
1950
0.8968
48717070
0.8081
30001 -
40000
662
0.3044
23834810
0.3954
40001 -
50000
554
0.2548
26120170
0.4333
50001 -
100000
688
0.3164
50097500
0.8310
100001
684
0.3146
5296119120
87.8518
217447
100.0000
6028467910
100.0000

8
47024
8
599
1323
383
730
9199
533
11489
1936
176
230
1439
12909
4213
2530
26131
5
34
5
37
4685
320
1453
3512
16

639
19549904
1327
192399
310787
435385
210233
373568073
391888
3710031
681226
55933
80065
498878
4314445
1391584
968556
149308871
2670
13475
4600
51523
1487212
91542
615761
1028069
12656
0.0001
3.2429
0.0002
0.0319
0.0516
0.0722
0.0349
61.9673
0.0650
0.6154
0.1130
0.0093
0.0133
0.0828
0.7157
0.2308
0.1607
24.7673
0.0004
0.0022
0.0008
0.0085
0.2467
0.0152
0.1021
0.1705
0.0021
12.2 ] (-)
]

\

\[
[

]

\
]
^

*

{

\
]
]

188
12.1 DISTRIBUTION OF SHAREHOLDERS CATEGORY WISE AS ON 31-03-2015

SHARE HOLDERS
Nominal Value
Upto 5000
5001 -
10000
Holders
SHARE AMOUNT
%
Amount Rs.
185278
85.2060
309805090
5.1391
20049
9.2202
166519910
2.7622
10001 -
20000
7582
3.4868
107254240
1.7791
20001 -
30000
1950
0.8968
48717070
0.8081
30001 -
40000
662
0.3044
23834810
0.3954
40001 -
50000
554
0.2548
26120170
0.4333
50001 -
100000
688
0.3164
50097500
0.8310
100001 and above
684
0.3146
5296119120
87.8518
217447
100.0000
6028467910
100.0000
Total
12.2 STATE-WISE SHAREHOLDING DISTRIBUTION (PINCODE-wise)

STATE
ANDAMAN NICOBAR
ANDHRA PRADESH
ARUNACHAL PRADESH
NO OF HOLDERS
TOTAL HOLDING
639
0.0001
47024
19549904
3.2429
1327
0.0002
ASSAM
599
192399
0.0319
BIHAR
1323
310787
0.0516
CHANDIGARH
383
435385
0.0722
CHHATTISGARH
730
210233
0.0349
9199
373568073
61.9673
533
391888
0.0650
GUJARAT
11489
3710031
0.6154
HARYANA
DELHI
GOA
1936
681226
0.1130
HIMACHAL PRADESH
176
55933
0.0093
JAMMU & KASHMIR
230
80065
0.0133
JHARKHAND
1439
498878
0.0828
KARNATAKA
12909
4314445
0.7157
KERALA
4213
1391584
0.2308
MADHYA PRADESH
2530
968556
0.1607
26131
149308871
24.7673
MAHARASHTRA*
MANIPUR
MEGHALAYA
MIZORAM
NAGALAND
ORRISSA
PONDICHERRY
2670
0.0004
34
13475
0.0022
4600
0.0008
37
51523
0.0085
4685
1487212
0.2467
320
91542
0.0152
PUNJAB
1453
615761
0.1021
RAJASTHAN
3512
1028069
0.1705
16
12656
0.0021
SIKKIM
189
16398
5548757
0.9204
33666
66
6556
454
9125
197192
20255
217447
14572324
14778
2237121
98006
5146198
586594916
16251875
602846791
2.4173
0.0025
0.3711
0.0163
0.8536
97.3041
2.6959
100.0000
(*) , /
13. , ]

\] \],

\\

\\

2014
67.25
62.90
42190331
67.20
62.85
4250922
2014
95.95
63.20
170560669
95.90
63.25 32883073
] 2014
107.95
94.90
137621702
108.10
95.00 15789287
] 2014
102.15
82.05
89536214
102.60
82.00 10885227
2014
83.00
71.60
53487714
83.05
71.60
2014
80.80
63.15
89711966
80.80
63.55 11791099
2014
83.85
63.70
68109116
83.90
63.60
9504451
2014
90.10
79.55
70948876
90.10
79.55
8895530
2014
94.60
81.65
91440305
94.60
81.70 13008891
] 2015
96.45
88.50
96544719
96.45
88.55 11501596
2015
93.75
82.30
59356729
93.80
82.60
7575701
\ 2015
87.10
76.85
41629744
87.05
76.85
5742095
190
5691927
TAMILNADU
16398
5548757
0.9204
TELANGANA
33666
14572324
2.4173
66
14778
0.0025
6556
2237121
0.3711
TRIPURA
UTTAR PRADESH
UTTARANCHAL
454
98006
0.0163
WEST BENGAL
9125
5146198
0.8536
197192
586594916
97.3041
20255
16251875
2.6959
217447
602846791
100.0000
TOTAL
OTHERS
GRAND TOTAL
(*) includes FII / NRI shareholders, having correspondent offices in Mumbai

13 SHARE PRICE, VOLUME OF SHARES TRADED IN STOCK EXCHANGES
Period
Date
National Stock Exchange

High
Low
Stock Exchange, Mumbai

Volume
High
Low
Volume
April 2014
67.25
62.90
42190331
67.20
62.85
4250922
May 2014
95.95
63.20
170560669
95.90
63.25
32883073
June 2014
107.95
94.90
137621702
108.10
95.00
15789287
July 2014
102.15
82.05
89536214
102.60
82.00
10885227
83.00
71.60
53487714
83.05
71.60
5691927
August 2014
September 2014
80.80
63.15
89711966
80.80
63.55
11791099
October 2014
83.85
63.70
68109116
83.90
63.60
9504451
November 2014
90.10
79.55
70948876
90.10
79.55
8895530
December 2014
94.60
81.65
91440305
94.60
81.70
13008891
January 2015
96.45
88.50
96544719
96.45
88.55
11601596
February 2015
93.75
82.30
59356729
93.80
82.60
7575701
March 2015
87.10
76.85
41629744
87.05
76.85
5742095
191
\ ( ) \
/
31 \ 2015 , \], 79/- \] . . 79.05

14.

(.)
31 \ ] - (.)
(.)
(.)
(.)
( %)
2012-13
10/-
94.65
23.04
5.00
146.13
21.70%
2013-14 2014-15
10/- 10/63.95 79.00
7.67 10.82
1.10 2.00
145.57 153.84
14.89% 22.66%
15. \
2005 -50
/
16.
\{ \ 49

\ ]] , ,
\ / \ \ \ \

192

Performance of Banks share price on NSE in comparison with the movement of S&P CNX Nifty and Bankex (as on the
last day of every month) is shown here below:
The Banks share price as on 31st March, 2015 closed at Rs.79/- on the National Stock Exchange, Mumbai and at
Rs.79.05p. on the Bombay Stock Exchange Limited.
14. PER SHARE DATA
2012-13
Face Value (Rs.)
2013-14
2014-15
10/-
10/-
10/-
Market Quotation as on
31st March NSE (Rs.)
94.65
63.95
79.00
Earnings (Rs.) per share
23.04
7.67
10.82
Dividend (Rs.) per share
5.00
1.10
2.00
146.13
145.57
153.84
21.70%
14.89%
22.66%
Book Value (Rs.) per share

Dividend payout (% of Net Profit)
15. LIQUIDITY
Andhra Bank scrip belongs to 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. MANDATORY AND NON-MANDATORY REQUIREMENTS
The Bank has complied with all the applicable mandatory requirements as provided in Clause 49 of the Listing Agreement
entered into with the Stock Exchanges.
193
www.andhrabank.in
-
1

- \
\
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2

] ] \

] ]
\, \{
]
\ 2015

4 ]

5

194

WHISTLE BLOWER POLICY
The Bank has a Whistle Blower Policy. Under this a mechanism has been incorporated as to how an employee can report
to the CVO/ Management about unethical behaviour, if any, actual or suspected fraud or violation of conduct or ethics.
This mechanism also provides adequate safeguards against victimization of employee who have used this mechanism.
The Whistle Blower Policy formulated by the Bank is available on the Banks website: www.andhrabank.in under the tab
Investors Corner.
The extent of implementation of non-mandatory requirements is furnished hereunder:

REQUIREMENT
COMPLIANCE
A Non-Executive Chairman should be entitled to

maintain the Chairmans office at the companys
expense and also be allowed reimbursement of
expenses incurred in performance of his duties.
The Bank is headed by an Executive Chairman

appointed by Government of India and as such this
requirement is not applicable.
The half-yearly declaration of financial

performance including summary of the significant
events in last six months should be sent to each
household of shareholders.
The Bank sends yearly financial results alongwith the

summary of significant developments during the year,
to all the shareholders. Banks quarterly financial results
are published through Newspapers, Stock Exchanges
and also through Banks website, after approval of the
same by the Board of Directors.
The Bank has not sent half yearly declaration of financial
performance to the Shareholder
Company may move towards regime of

unqualified financial statements.
There are no qualifications in Auditors Report on the

Annual Accounts for the year ended on 31st March
2015.
The company may appoint separate persons to

the post of Chairman and Managing Director.
The Chairman and Managing Director of the Bank is

appointed by the Government of India.
Reporting of Internal Auditor

The Internal Auditor may report directly to the
Audit Committee.
Important observations of the Concurrent Auditors are

reviewed by the Audit Committee.
195

( \] \ ^ 49(IX) )

, ,
] () 31 \, 2015 - ]

i. ] ]

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/( ])

27.04.2015
196
CERTIFICATE
(Pursuant to Clause 49(IX) 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, 2015 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.
sd/-
(S.V. Venkatasubramanian)
General Manager (Accounts)
& Chief Financial Officer
sd/(C. VR. Rajendran)

Place: Hyderabad
Date : 27.04.2015
197
]

\

31 \ 2015 ] \] \ 49
, ] , ]\ .
] ]\ ,
- .
]
\ ,] ,
.
.

-312063

-000425
/( ] \)
(..070633)
/( )
(.. 080245)

-001541

-0060315
/( . ] )
(.. 023417)
/( )
(.. 023819)

29.05.2015
198
M/s. Nag & Associates

Chartered Accountants
Kolkata.
M/s. Prem Gupta & Co

New Delhi.
M/s. V. Krishnan & Co

Chennai.
M/s. Basha & Narasimhan

Visakhapatnam.
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, 2015,
as stipulated in Clause 49 of the Listing Agreement of the said Bank with the 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 NAG & ASSOCIATES

FRN- 312063E
For PREM GUPTA & Co

FRN 000425N
Sd/-
(CA Anjan Bhattacharyya)
Partner (M.No.070633)
Sd/(CA Prem Behari Gupta)

Sd/-
(CA M. Gopinath)
Partner (M.No. 023819)
For V. KRISHNAN & Co

FRN- 001541S
For BASHA & NARASIMHAN

FRN 006031S
Sd/(CA Sk. Phyaji Basha Saheb)
PLACE: HYDERABAD
DATE: 29.05.2015
199
- (\ 49 (11) () (5) )
\
, \ \\
-
\ \-
- [
-

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\ ]
\ - , ] ,
]

] ....47/29.39.001/2007-18 01.11.2007 \
] /2010-11/541
23, 2011 16/83/2013-.1 03.09.2013
, 16/17/2010
- .1 13.10.2011 \
- \ ] (]
, ])

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200

CRITERIA TO EVALUATE THE PERFORMANCE OF THE INDEPENDENT DIRECTORS ON THE BOARD OF THE BANK
(AS PER THE CLAUSE 49 (II)(B)(5) OF THE LISTING AGREEMENT)
INTRODUCTION
The Banks Board of Directors is dedicated to act in good faith; exercise their judgment on an informed basis and in the best
interest of the Bank and its stakeholders.
With an aim to maintain a proactive and effective Board, the Board is committed to a continuing process of recommending
and laying down the criteria to evaluate the performance of the Independent Directors of the Bank. It is important that every
individual Board Member effectively contributes in the Board deliberations.
Performance Evaluation process aims to ensure that Independent Directors (Directors) work efficiently and effectively in
achieving the Banks objectives. This policy aims at establishing a procedure for the Board to conduct periodic evaluation
of Independent Directors.
RESPONSIBILITY OF BOARD AND INDEPENDENT DIRECTORS
The evaluation process will be used constructively as a system to improve the directors and committees effectiveness, to
maximize their strength and to tackle their shortcomings.
In conformity with the requirement of the Listing Agreement, the performance evaluation of all the Independent Directors
shall be done by the entire Board of Directors, excluding the Director being evaluated.
EVALUATION FACTORS
The RBI vide letter no. DBOD.No.BC.No.47/29.39.001/2007-08 dated 01.11.2007 has laid down certain guidelines to
ensure the fit and proper criteria for elected directors on the boards of the nationalised banks. Reserve Bank of India
vide its letter no. RBI/2010-11/541 dated May 23, 2011 and Ministry of Finance, Department of Financial Services Order
No.F.No.16/83/2013-BO.I dated 03.09.2013 has also prescribed certain guidelines to determine the fit and proper status of
Directors. Ministry of Finance, Department of Financial Services vide Order No. 16/17/2010 BO.I dated 13.10. 2011 has
made modification to the criteria to be considered for the Non-official Director.
The above said guidelines are to be considered while laying down the criteria for the performance evaluation of Independent
Directors.
INDEPENDENT DIRECTORS
Some of the specific issues and questions that should be considered in the performance evaluation of an Independent
Director, (the exercise in which the concerned Director being evaluated shall not be included) are set out below:
S.No.
Assessment Criteria
1.
Undertaking of due diligence to determine the fit and proper status of elected Directors in the light of fit and
proper status guidelines issued by Reserve Bank of India and Ministry of Finance, Department of Financial
Services from time to time.
2.
Attendance, participations in the Meetings and timely inputs on the minutes of the meetings.
3.
Adherence to ethical standards & code of conduct of Bank.
4.
Raising of valid concerns to the Board and constructive contribution to resolution of issues at meetings.
5.
Interpersonal relations with other Directors and Management.
6.
Rendering independent, unbiased opinion.
7.
Understanding of the Bank and the external environment in which it operates and contribution to strategic
direction.
8.
Safeguarding interest of whistle-blowers under vigil mechanism and safeguard of confidential information.

201
31 \, 2015 BALANCE SHEET AS ON 31.03.2015
(` ] ) (` in `000)
Particulars
\ 31.03.2015 31.03.2014

Schedule No.
As on 31.03.2015
As on 31.03.2014
SOURCE OF FUNDS
] Capital
1
602,84,68
589,61,49
~ Reserves & Surplus
2
9461,24,04
8147,83,62
] Deposits
3
155012,24,46
141845,12,38
Borrowings
4
15307,21,72
13185,09,44
Other Liabilities & Provisions
5
4786,79,96
3573,25,58
TOTAL
185170,34,86
167340,92,51
] APPLICATION OF FUNDS
Cash and Balances with RBI
6
7517,40,37
7912,05,82
\ Balances with Banks
and money at call and Short Notice
7
146,36,48
1528,54,03
Investments
8
46499,42,77
45356,62,13
Advances
9
125954,72,67
107644,20,02
\ Fixed Assets
10
1263,57,18
433,92,54
Other Assets
11
3788,85,39
4465,57,97
TOTAL
185170,34,86
167340,92,51
Contingent Liabilities
12
55055,94,94
40572,96,22
Bills for Collection
5195,03,02
5294,45,31
Significant Accounting Policies
17
Notes on Accounts
18
\ . The Schedules referred to above form an integral part of Balance Sheet.
. . ]
.

.
.

].

- 000425
( )
(.. 070633)
27.04.2015

- 312063
( ] \)
:
:
. .
(.. 080245)

- 001541

- 006031
( ].)
( . ] )
(.. 023417)
(.. 026769)
202
31 \, 2015 PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2015

(` ] ) (` in `000)
Particulars
\
31.03.2015
31.03.2014
Schedule No Year Ended 31.03.2015 Year Ended 31.03.2014
INCOME
\ ] Interest Earned
13
16368,60,44
14297,31,50
Other Income
14
1499,84,18
1332,84,30
TOTAL INCOME
17868,44,62
15630,15,80
EXPENDITURE
] Interest Expended
15
11830,57,12
10559,98,11
\ Operating Expenses
16
2739,44,10
2309,93,52
Provisions and Contingencies
2659,99,60
2324,66,46
TOTAL EXPENDITURE
17230,00,82
15194,58,09
Net Profit for the year
638,43,80
435,57,71
Profit Brought forward
56,16,26
98,00,00
TOTAL
694,60,06
533,57,71
] APPROPRIATIONS
Transfer to Statutory Reserve
159,60,95
108,89,43
] Transfer to Capital Reserve
76,55,00
2,64,00
] Transfer to Revenue & Other Reserves
28,77,00
95,00,00
190,00,00
195,00,00
Proposed/Interim Dividend
120,56,93
64,85,76
Dividend Tax
24,10,68
11,02,26
] Balance carried over to Balance Sheet
94,99,50
56,16,26
TOTAL
694,60,06
533,57,71
( ) Earnings per share (Basic and Diluted) `
10.82
7.67
\ . The schedules refer to above form an integral part of profit & loss Account.
C.VR.RAJENDRAN
E.E.KARTHAK
AMIT GOEL

Directors
K. THAMARAISELVAN
A. KRISHNAKUMAR
S.K.KALRA
Executive Director
NAINA SHARMA
G. SIVAKUMAR
As per our report of even date
AJIT KUMAR RATH

Executive Director
S.V. VENKATASUBRAMANIAN
General Manager
Y. Amarnath
Deputy General Manager
FOR PREM GUPTA & CO.

FRN:000425N
FOR NAG & ASSOCIATES

FRN:312063E
(CA PREM BEHARI GUPTA)

(CA ANJAN BHATTACHARYYA)

FOR BASHA & NARASIMHAN

FRN:006031S
FOR V. KRISHNAN & CO.

FRN:001541S
(CA SK. PHYAJI BASHA SAHEB)

(CA G. PARI)
Place : Hyderabad
Date : 27.04.2015
203
- \ SCHEDULES FORMING PART OF Balance Sheet
(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014

as on 31.03.2015
as on 31.03.2014
\ SCHEDULE-1:: ] CAPITAL
I. ] Authorised Capital
10/- ` 300,00,00,000
300,00,00,000 Equity Shares of `10/- each
3000,00,00
3000,00,00
II.], , Issued, Subscribed, Called up and Paid up
10/- ` 60,28,46,791 ( 58,96,14,903 )
( 36,78,46,791 )
( 35,46,14,903 )
60,28,46,791 Equity Shares of `10/- each (Previous year 58,96,14,903
Equity Shares) [Including 36,78,46,791 Equity Shares (Previous year
35,46,14,903 Equity Shares) held by Central Government]
602,84,68
589,61,49
\ -I TOTAL SCHEDULE - 1
602,84,68
589,61,49
\ SCHEDULE- 2 :: RESERVES AND SURPLUS
I. Statutory Reserve
Opening balance
2457,34,55
] Addition during the year
159,60,95
Total - I
2616,95,50
II.] Capital Reserve
A. Revaluation Reserve
Opening balance
-
] Addition during the year (Revaluation of property in 2014-15)
1587,89,81
Deduction during the Year (Being accumulated depreciation
on revalued portion of property)
875,02,32
Total - II A
712,87,49
B. Other Reserves
Opening balance
362,02,71
] Addition during the Year
76,55,00
Total-II B
438,57,71
Total-II A+B
1151,45,20
III. Share Primium
Opening balance
1948,38,51
106,76,81
Total - III
2055,15,32
IV. Revenue and Other Reserves
A. ] Revenue Reserve
Opening balance
2353,91,59
28,77,00
- ] Less: Adjustments
7
Total - IVA
2382,68,52
204
2348,45,12
108,89,43
2457,34,55
-
359,38,71
2,64,00
362,02,71
362,02,71
1778,41,96
169,96,55
1948,38,51
2522,34,51
95,00,00
263,42,92
2353,91,59

(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014

as on 31.03.2015
as on 31.03.2014
B. 36 (1) (viii)
Special Reserve U/S 36(1)(viii) of IT Act
Opening balance
970,00,00
775,00,00
190,00,00
195,00,00
- Less: Deductions
-
Total-IV B
1160,00,00
970,00,00
Total-IV A+B
3542,68,52
3323,91,59
V. Balance in Profit & Loss Account
94,99,50
56,16,26
\ TOTAL SCHEDULE - 2
9461,24,04 8147,83,62
\ SCHEDULE- 3 :: ] DEPOSITS
I-. ] I-A. Demand Deposits
) i) From Banks
37,77,49
27,09,59
) ii) From Others
9668,26,56
7466,07,04
Total
9706,04,05
7493,16,63
) i)From Banks
) ii) From Others
32695,80,50
27692,78,01
Total
32695,80,50
27692,78,01
) i) From Banks
60,96
3,05,71
) ii) From Others
112609,78,95
106656,12,03
Total
112610,39,91
106659,17,74
Total-I
155012,24,46
141845,12,38
II-. ] II-A. Deposits of Branches in India
155012,24,46
141845,12,38
II-. ] II-B. Deposits of Branches Outside India
Total-II
155012,24,46
141845,12,38
155012,24,46
141845,12,38
I-. \ ] I-B.Saving Bank Deposits
I-. ] I-C Term Deposits
205

(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014
as on 31.03.2015
as on 31.03.2014
\ SCHEDULE - 4 :: BORROWINGS
I. Borrowings in India
) { i) From Reserve Bank of India
6650,00,00
6396,00,00
) ii) From Other Banks
159,83,74
) ] iii) Other Institutions and Agencies
1739,77,98
1702,02,69
) iv) Subordinated Debts

) 7.25% 111 a) 7.25% 111 Months Bonds
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
) v) Innovative prepetual Debt Bonds
200,00,00
200,00,00
\) \\ II vi) Upper Tier II Bonds
1000,00,00
1000,00,00
vii) 7 7 Years Infra Bonds
500,10,00
viii) 9.55% -I \ 9.55% Additional Tier-I Perpetual Debt Bonds
500,00,00
] Sub - Total - I
12369,71,72
11118,02,69
II. Borrowings outside India
2937,50,00
2067,06,75
15307,21,72
13185,09,44
I. Bills Payable
708,42,30
649,35,85
II. ] () Inter office Adjustments (Net)

III.\ ] Interest Accrued
-
285,05,05
238,09,41
1087,50,00
780,50,00
V. Deferred Tax Liability
411,66,25
384,66,25
VI. ( ) Others (Including Provisions)
2294,16,36
1520,64,07
4786,79,96
3573,25,58
\ SCHEDULE - 5 ::
OTHER LIABILITIES AND PROVISIONS
IV. Contingent Provisions against Standard Assets
206

(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014
as on 31.03.2015
as on 31.03.2014
\ SCHEDULE - 6 :: {
CASH AND BALANCES WITH RESERVE BANK OF INDIA
I. ( ) Cash in hand (Including Foreign Currency Notes)
675,60,48
511,56,61
II. { Balance with Reserve Bank of India

) \ i) In Current Accounts
6841,79,89
7400,49,21
) ii) In Other Accounts
7517,40,37
7912,05,82
38,72,16
39,41,99
\ SCHEDULE - 7 :: \
BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
I. In India
i). Balances with Banks
).\ a) In Current Accounts
). b) In Other Accounts
1218,56,14
Total
38,72,16 1257,98,13
ii) \ Money at Call and Short Notice
) a) With Banks
) b) With Other Institutions
-
-
Total
Total - I
38,72,16
1257,98,13
II. Outside India

).\ i) In Current Accounts
107,64,32
270,55,90
). ] ii) In Other Deposit Accounts

). \ iii) Money at Call and Short Notice
-
-
Total - II
107,64,32
270,55,90
146,36,48
1528,54,03
207
(` ] ) (` in `000)
Particulars

31.03.2015
31.03.2014

as on 31.03.2015
as on 31.03.2014
SCHEDULE - 8 :: INVESTMENTS
I. Invetments in India
) i) Government Securities
42504,77,91
39932,36,63
) ii) Other Approved Securities
-
) iii) Shares
315,77,04
293,71,37
) \ iv) Debentures and Bonds
1966,45,10
3245,19,47
) / v) Subsidiaries and/ or Joint Ventures
173,50,47
173,50,48
\) vi) Others
1395,64,17
1573,11,76
Total - I
46356,14,69
45217,89,71
II. Investments Outside India
) i) Government Securities
-
) ii) Other Approved Securities
-
) iii) Shares
-
) \ iv) Debentures and Bonds
-
) / v) Subsidiaries and/ or Joint Ventures
143,28,08
138,72,42
\) vi) Others
-
Total - II

143,28,08
138,72,42
] GRAND TOTAL ( I + II )
46499,42,77
45356,62,13
Gross Investments
46718,65,04
45639,27,99
: Less: Depreciation
219,22,27
282,65,86
46499,42,77
45356,62,13
\ SCHEDULE - 9 :: ADVANCES
I- I-A Bills Purchased and Discounted
2866,63,97
2532,15,64
I-. ,
I-B Cash Credits, Overdrafts and Loans Repayable on Demand
67732,51,53
57185,69,18
I-. I-C Term Loans
55355,57,17
47926,35,20
Total - I
125954,72,67
107644,20,02
II-. (- )
II-A. Secured by Tangible Assets (Includes Advances against Book Debts)
111564,53,99
96634,32,90
II-. /
II-B. Covered by Bank/Government Guarantees
6314,77,86
4891,30,22
II-. II.C. Unsecured Advances
8075,40,82
6118,56,90
Total - II
125954,72,67
107644,20,02
III-. III-A. Advances in India
) i) Priority Sector
44648,35,51
40647,54,70
) ] ii) Public Sector
7366,67,46
6413,20,89
) iii) Banks
-
) iv) Others
73939,69,70
60583,44,43
III- Total - III - A
125954,72,67
107644,20,02
III-. III-B Advances Outside India
-
Total - III
125954,72,67
107644,20,02
125954,72,67
107644,20,02
208

(` ] ) (` in `000)
Particulars

31.03.2015
as on 31.03.2015
31.03.2014
as on 31.03.2014
\ SCHEDULE - 10 :: \ FIXED ASSETS

. A. Tangible Assets
I. Premises
Opening balance at cost
116,07,56
111,79,59
1,22,19
4,27,97
] Addition on account of revaluation in original cost
1587,89,81
Deduction during the year
-
] ( 875,02,32 \ ( -)
Depreciation to date (including accumulated depreciation of

` 875,02,32 (Previous year ` Nil) on account of revaluation)
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
\ Total Schedule - 10
916,63,50
37,70,55
788,56,06
78,37,01
985,14,39
219,63,16
21,93,60
785,85,54
396,98,41
854,28,67
150,33,30
19,47,58
700,20,07
284,94,32
42,75,40
59,23,53
59,92,11
42,06,82
4,13,86
54,48,35
15,86,81
42,75,40
148,76,60
123,11,72
19,42,19
25,64,88
-
132,22,90
120,90,79
35,95,89
27,85,81
1263,57,18 433,92,54
\ SCHEDULE - 11 :: OTHER ASSETS

I. ] () Inter Office Adjustments (Net)
43,48,30
53,34,14
II. \ ] Interest Accrued
1184,80,83
1220,60,91
III. / ( )
Tax Paid in Advance /Tax Deducted at Source (Net of Provision)
1766,97,06
2183,01,36
IV. Stationery and Stamps
10,72,05
9,90,20
V. () Deferred Tax Asset (Net)
VI. Others
782,87,15
998,71,36
3788,85,39
4465,57,97
209

Particulars
(` ] ) (` in `000)
31.03.2015
31.03.2014
as on 31.03.2015
as on 31.03.2014
\ SCHEDULE - 12 :: CONTINGENT LIABILITIES
I. ] ] Claims against Bank not Acknowledged as Debts
40,43,45
270,14,44
II. /
Liability for partly paid Shares/Investments
III. ] Capital Commitments
136,67,57
71,39,27
IV. Options & Derivatives

V. Outstanding forward Exchange Contracts
36411,16,80
22090,27,51
) a) In India
10838,85,86
9917,47,08
) b) Outside India
VII. , Acceptances, Endorsements and Other Obligations
5374,40,33
5732,40,11
VIII. Letter of Comfort
1367,63,06
1968,22,18
IX. ]- Interest Rate Swaps
X. Disputed Tax Liability
737,21,00
522,13,00
XI. ]
Other items for which Bank is Contingently Liable
14956,87
92,63
VI. Guarantees given on behalf of Constituents
210
55055,94,94 40572,96,22
\ SCHEDULES FORMING PART OF Profit & Loss Account

(` ] ) (` in `000)

Particulars
31.03.2015
31.03.2014
Year Ended 31.03.2015 Year Ended 31.03.2014
\ SCHEDULE - 13 :: ] ] INTEREST EARNED

I. / ]/ Interest/Discount on Advances/Bills
II. Income on Investments
12741,82,19
11113,75,83
3508,54,96
3008,15,49
51,56,69
74,82,01
66,66,60
100,58,17
16368,60,44
14297,31,50
III. ] -
Interest on Balances with RBI and Other Inter Bank Funds
IV. Others
\ SCHEDULE - 14 :: OTHER INCOME

I. , ] Commission, Exchange and Brokerage
340,07,71
268,24,13
II. Profit on Sale of Inverstments
366,49,71
395,39,84
7,57,47
8,34,47
27,79
60,39
183,16,12
88,71,70
6,56,18
6,86,67
595,69,20
564,67,10
1499,84,18
1332,84,30
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
211
\ SCHEDULES FORMING PART OF Profit & Loss Account

(` ] ) (` in `000)

Particulars
31.03.2015
31.03.2014
\ SCHEDULE - 15 :: ] INTEREST EXPENDED

I. ] ] Interest on Deposits
II. / ] Interest on RBI/Inter Bank Borrowings
III. Others
10911,22,04
612,02,42
307,32,66
11830,57,12
\ SCHEDULE - 16 :: \ OPERATING EXPENSES
I. \ Payments to and Provisions for Employees

II. , ] Rent, Taxes and Lighting
III Printing and Stationery
IV. \ Advertisement and Publicity
V. Depreciation on Banks Property
VI. , Directors Fees, Allowances and Expenses
VII. ( )
Auditors Fees and Expenses (Including Branch Auditors)
VIII Law Charges
IX. , Postage, Telephones etc.
X. - Repairs and Maintenance
XI. Insurance
XII. Other Expenditure
212
9849,29,15
431,47,37
279,21,59
10559,98,11
1697,95,64
217,74,07
28,90,71
15,41,06
119,97,12
73,86
1382,85,39
179,51,94
24,19,87
18,36,77
89,97,14
78,17
20,30,49
6,26,93
39,52,85
99,58,43
145,18,69
347,84,25
2739,44,10
20,92,96
12,04,22
36,76,25
96,55,33
134,48,62
313,46,86
2309,93,52
LEFT BLANK
213
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ii)
SCHEDULE 17 - SIGNIFICANT ACCOUNTING

POLICIES:
1. GENERAL:
1.1. Basis of preparation

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
in all material aspects to Generally Accepted
Accounting Principles in India which comprise
of applicable statutory provisions, regulatory
norms/ guidelines prescribed by the Reserve
Bank of India (RBI), Banking Regulation Act,
1949, Accounting Standards, Guidance Notes
issued by the Institute of Chartered Accountants
of India (ICAI) and practices prevailing in the
banking industry in India.
1.2. Use of estimates

The preparation of financial statements requires
the management to make estimates and
assumptions considered in the reported amount
of assets and liabilities (including contingent
liabilities) as of the date of the financial statements
and the reported income and expenses for the
reporting period. Management believes that
the estimates used in the financial statements
are prudent and reasonable. Future results
could differ from these estimates. Any revision
in the accounting estimates is recognized
prospectively in the current and future periods
2. REVENUE RECOGNITION:
2.1
Income and Expenditure are generally
recognised on accrual basis, except the
following;
i. Interest on non-performing advances and non
performing investments is recognized based on
realisation as per prudential norms laid down by
Reserve Bank of India, in view of uncertainties of
collection of income in such cases.
ii. Income by way of Commission, exchange,
brokerage, fee, interest on overdue bills, and
rent on lockers are accounted for on realisation.
iii. Dividend is accounted on accrual basis when
the right to receive the same is established.
iv. 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.
2.2
Partial recoveries in non performing

advances are appropriated in the following
order of priority.
i.
Expenditure/out of pocket expenses incurred for

recovery.
ii.
Interest irregularities/accrued interest.
iii. Principal irregularities i.e., Principal outstanding

in the account
2.3 In case of non performing advances involving
compromise settlements in which case the
recoveries are first adjusted towards principal.
3.
FOREIGN EXCHANGE TRANSACTIONS:
3.1 Income and Expenditure items are recorded at

the exchange rates prevailing on the date of
transaction.
3.2 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.
3.3 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.
3.4 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.
3.5 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. INVESTMENTS:
4.1 Investments are classified and shown in Balance
Sheet under the following six heads:

i. Government Securities

ii. Other Approved Securities
215
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216
4.5
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iii. Shares
iv. Debentures and Bonds
v. Subsidiaries / Joint Ventures /Associates and
vi. Others.
The Investments are valued in accordance with

guidelines issued by Reserve Bank of India on the
following basis:i. 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 amortised over the remaining
period of maturity. Such amortization of premium
is adjusted against income under the head
Interest on Investments
b. Investments in subsidiaries, joint ventures and
associates (both in India and abroad) are valued
at historical cost
c. 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. The net depreciation under each of the five
heads (other than investment in Subsidiaries /
Joint Ventures /Associates) 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.
b. The net depreciation under each of the five
heads (other than investment in Subsidiaries /
Joint Ventures /Associates) 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.
4.5 Prudential Norms:
i. The identification of non performing investments
and provisions made thereon is as per Reserve
Bank of India guidelines.
4.2 Investments are further classified into the

following three categories:

i. Held to Maturity (HTM)
ii. Available for Sale (AFS)
iii. Held for Trading (HFT)
4.3 Basis of classification

i. Held to Maturity category comprises of

securities acquired with the intention to hold
them up to maturity.
ii. Held for Trading category comprises of

securities acquired with the intention of
trading.
iii. Available for Sale securities are those which

are not classified under either of the above
two categories.
iv. Investments in Subsidiaries/Joint ventures/

Associates are classified as Held to Maturity.
v.

An investment is classified as HTM, HFT or

AFS at the time of its purchase and
subsequent shifting amongst categories is
done in conformity with the guidelines issued
by Reserve Bank of India.
4.4 Valuation:

In determining the acquisition cost of an

investment
i.
Brokerage/commission
received
on
subscriptions is reduced from the cost of
Investments. The incentives received after
the sale of securities is credited to Profit and
Loss Account.
ii.
Brokerage,
commission,
securities
transaction tax and stamp duty paid in
connection with acquisition of investments
are treated as revenue expenditure.

iii. Broken period interest paid/received on debt

instruments is treated as interest expense/
income and is excluded from cost/sale
consideration.
iv. Cost is determined on the weighted average

cost method for all the categories of
investments.
217
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ii. Accounting
for
Repo/Reverse
Repo
transactions:

The securities sold and purchased under Repo/
Reverse repo are accounted as Collateralized
lending and borrowing transactions. However,
securities are transferred as in the case of
normal outright sale/ purchase transactions
and such movement of securities is reflected
using the Repo/Reverse Repo Accounts and
Contra entries. The above entries are reversed
on the date of maturity. Costs and revenues
are accounted as interest expenditure/income,
as the case may be. Balance in Repo A/c is
classified under schedule 4 (Borrowings) and
balance in Reverse Repo A/c is classified under
schedule 8 (Investments).
4.6 Profit / Loss on Sale of Investments:
i.
ii.
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.
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) In case of transfer of securities from HTM to
AFS/HFT 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 amortised cost.
After transfer in both the above cases, these

securities are immediately re-valued and
resultant depreciation, if any, is provided.
c)
In case of transfer of securities from AFS to HFT

category or vice-versa, the securities are not revalued 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.
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).
iv. Loss on sale of investments in all the three
categories is recognized in Profit and Loss
Account.
4.7 General
i.
Purchase and sale transactions in Government

and other than 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
If the security originally placed under HTM

category;
5. INTEREST RATE SWAPS:

5.1. Interest Rate Swaps: (Hedging)
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.
219
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.
5.2. ] ()
i. ]
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ii.

iii.
iv. ,
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6.
6.1 ] ]
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6.2 , ,

6.3 ]

6.4 ]

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220
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7.2
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5.00%
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18.10%
, 13.91%

25.89%
ii. {
33.33%
iii. ]
7 ,

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The revalued amounts of fixed assets are

presented by restating both the gross book
value and accumulated depreciation so as to
give a net book value equal to the net revalued
amount. The appreciation on revaluation is
credited to revaluation reserve and incremental
depreciation, if any attributable to the revalued
amount is deducted there from.
5.2 Interest Rate Swaps: (Trading)

i.
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;
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.
7.2 Depreciation
i.
6.1 Loans and Advances are classified as performing

and non-performing, based on the guidelines
issued by the Reserve Bank of India.
Depreciation on Premises and on other Fixed

Assets, except computers and ATMs, is
provided on WDV method at the following rates
considered appropriate by the Management.
Premises- Freehold
5.00%
6.2 Advances are classified into Standard, SubStandard, Doubtful and Loss Assets borrower
wise.
Furniture & Fixture
18.10%

Electricals, Electronics 13.91%

and Office Equipments

Motor Vehicles 25.89%
6. ADVANCES :
6.3 Provisions are made for NPAs as per the extant

guidelines prescribed by Reserve Bank of India
authorities and additional provision as assessed
6.4 Advances stated in the Balance Sheet are net of
specific loan loss provisions.
6.5 For restructured/rescheduled assets, provisions
are made in accordance with the guidelines
issued by the RBI, which require that the
difference between the fair value of the loan
before and after restructuring is provided for.
The Provision for Diminution in Fair Value (DFV)
is reduced from advances.
6.6 In the case of loan accounts classified as NPAs,
account may be reclassified as a performing
asset if it conforms to the guidelines prescribed
by the regulators.
6.7 Amounts recovered against debts written off in
earlier years are recognized as revenue in the
year of recovery.
6.8 General provision are also made for standard
assets as per extant RBI Guidelines. These
provisions are reflected in Schedule 5 of the
Balance Sheet under the head Other Liabilities
and Provisions and are not considered for
arriving at Net NPAs.
7. FIXED ASSETS :
7.1 Fixed Assets are stated at historical cost except
Land/premises, which have been revalued.
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.
7.3 Amortisation
i.
Premium wherever is paid for acquisition of

leasehold land, such premium along with cost of
the buildings constructed thereon is amortised
over the period of lease.
ii. Depreciation has been charged on composite

cost of Land and Building, where separate cost
of Land is not available.
iii. 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. Other software acquired is charged off in the
year of acquisition.
8. EMPLOYEES BENEFITS:
8.1 Short Term Employee Benefits:

The undiscounted amounts of short-term
employee benefits, such as medical benefits
which are expected to be paid in exchange
for the services rendered by employees, are
221

\ ]
8.2
i. ]

1 2010 ]
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10%
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9.
9.1.
i. \
ii.
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9.2. \ , , 1961

\ \ ]
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9.3. 1961
]
22 `

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ii. ]
)
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\
/ \ , 1972
\ 2010-11
5
222
9.4. -
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9.5. ]
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9.6 , /

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9.7. {
] { 1961
36(1) (viii) ] {
{ ]
recognized during the period when the employee

renders the services.
8.2 Long Term Employee Benefits:
i. Defined Contribution Plans:

The Bank operates a new pension scheme
(NPS) for all officers/ employees joining the
Bank on or after 1st April, 2010, which is a
defined contribution plan, such new joinees
not being entitled to become members of the
existing Pension Scheme. As per the scheme,
the covered employees contribute 10% of
their basic pay plus dearness allowance to the
scheme together with a matching contribution
for the Bank. Pending completion of registration
procedures of the employees concerned, these
contributions are retained with the Bank. The
Bank recognizes such annual contributions in
the year to which they relate. Upon receipt of
the Permanent Retirement Account Number
(PRAN), the consolidated contribution amounts
are transferred to the NPS Trust.
ii. Defined Benefit Plans
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.
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.
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 amortized equally over a period of five years
beginning with the financial year 2010-11.
iii. Other Long Term Employee Benefits:

a. All eligible employees of the Bank are eligible
for compensated absences, silver jubilee award,
leave travel concession, retirement award and
resettlement allowance. The costs of such long
term employee benefits are internally funded by
the Bank.
b. The cost of providing other long term benefits
is determined using the projected unit credit
method with actuarial valuations being carried
out at each balance sheet date. Past service
cost is immediately recognized in the statement
of profit and loss and is not deferred.
9. TAXES ON INCOME :
9.1 Income tax expense is the aggregate amount
of

i. current tax provision and

ii. deferred tax charge.
9.2 Current tax provision is the amount of tax for the
period which is determined in accordance with
the provisions of Income tax Act, 1961 and the
rules made there under.
9.3 Deferred tax charge is determined in accordance
with the provisions of Income Tax Act, 1961 and
as per Accounting Standard 22 Accounting
for Taxes on Income issued by the Institute
of Chartered Accountants of India and is the
net change in the deferred tax asset or liability
during the year. Deferred income taxes reflect
the impact of current year timing differences
between taxable income and accounting income
and reversal of timing differences of earlier
years.
9.4 Deferred tax is measured based on the tax
rates and the tax laws enacted or substantively
enacted at the Balance Sheet date.
9.5 Deferred tax assets are not recognized unless
there is reasonable certainty that sufficient
future taxable income will be available against
which such deferred tax assets will be realized.
9.6 Deferred tax assets are recognised and
reassessed at each reporting date, based upon
the managements judgment as to whether
realisation is considered as reasonably/virtually
certain.
9.7 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
223
{

10.
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]

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11.1. ] -29 ,
,

i.
ii.

iii. ]
11.2 ]
i. ]
, ] ,

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224
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11.3 ]
12

i.
ii.
iii.
iv.
v. ]
vi.
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.
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.
11. Provisions, Contingent Liabilities
and Contingent Assets
11.1 In conformity with AS-29 Provisions, Contingent
Liabilities and Contingent Assets issued by the
Institute of Chartered Accountants of India, the
Bank recognises provisions only when :
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.
11.2 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 nonoccurrence of one or more uncertain future
events not wholly within the control of the Bank;
or
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 for,
except in the extremely rare circumstances
where no reliable estimate can be made.
11.3 Contingent Assets are not recognized in the
financial statements.
12. NET PROFIT:

The Net Profit disclosed in the Profit and Loss
Account is after:i.
Provision for depreciation on Investments.
ii.
Provision for Taxation.
iii.
Provision on loan losses
iv.
Provision on Standard Assets.
v.
Provision for non-performing investments
vi.
Other usual and necessary provisions.
225
\ 18 -
1. { (..) ]

1.1. ]

31 \, 2015
31 \, 2014

-I -II -I -II
i) 1 ] (%)

7.49

7.96
ii) - I ] (%)
8.08
0.50
8.25
0.13
iii) - II ] (%)
2.80
2.64
2.93
2.69
iv) ] () %
10.88
10.63
11.18
10.78
v)
61.02
60.14
vi) ]
120.00**
200.00*
vii) 1 ],
500.00
] -\
()

500.00
viii) II ] ,
] ]

\ ()
\

()

()

(*) 21.12.2013 3,00,34,539
66.59 ( 56.59 ) ]
10/- , ] 199,99,99,952.01
(**) 25.03.2015 1,32,31,888
90.69 ( 80.69 ) ]
10/- , ] 119,99,99,922.72
1.2.

31\,
2014
*143.28
*138.72
()
() ,
219.22
282.66
0.00
0.00
#46356.15
#45217.90
*143.28
* 138.72
282.66
76.30
163.08
119.58
139.74
219.22
0.00
282.66
(iii)

()
(b) ,
(2)
-\[
i)
ii) ]
iii)
/
iv)
) 143.28 (138.72 )
.10/- 8250000 (8000000)
() \

\

1.2.1 ( )

( . )
31 \

2015

(i)

(ii)

(ii) (]
)

) 1 (1) 8 (8)
(i)

(i)
()
#46575.37
#45500.56
() ,
)1 (1) 162 (162) ()
364.00
(41.60)
6604.00
3590.44 6350.00
(8580.00) (1267.09) (5611.84)
0.00
(0.00)
0.00
(0.00)
31.20
(52.00)
2267.20
(936.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
(1)
(ii)

( . )
31\,
2015
# ]
] 2.60 (2.60 .)
226
141.59
520.00
(18.77) (520.00)
0.00
(0.00)
0.00
(0.00)
Schedule 18 - Notes on Accounts
1. In terms of the Guidelines issued by the Reserve Bank

of India (RBI), the following disclosures are made:
1.1. Capital
(` in crore)
Particulars
31st March-2015 31st March- 2014
Sl.No
BASEL II BASEL-III BASEL -II BASEL-IIII
i) Common Equity Tier 1
NA
7.49
NA
7.96
Capital Ratio (%)
ii) Tier I Capital Ratio (%)
8.08
0.50
8.25
0.13
iii) Tier II Capital ratio (%)
2.80
2.64
2.93
2.69
iv) Total Capital ratio (CRAR) (%)
10.88
10.63
11.18
10.78
v) Percentage of the
61.02
60.14
shareholding of the
Government of India
vi) Amount of equity capital
120.00**
200.00*
raised
vii) Amount of Additional
Tier 1 capital raised; of which:
500.00
NIL
Perpetual Non-Cumulative
Preference Shares (PNCPS):
NIL
NIL
Perpetual Debt
Instruments (PDI):
500.00
NIL
viii) Amount of Tier 2
capital raised; of which
Debt capital instrument:
NIL
NIL
Preference Share
Capital Instruments:
NIL
NIL
Perpetual Cumulative
Preference Shares (PCPS)
NIL
NIL
Redeemable NonCumulative Preference
Shares (RNCPS)
NIL
NIL
Redeemable Cumulative
Preference Shares (RCPS)
NIL
NIL
(*) 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 per
share (including premium of `56.59 per share) on 21.12.2013 amounting to
`199,99,99,952.01.
(**)The Bank has allotted 1,32,31,888 equity shares of `10/- each for cash at `90.69
per share (including a premium of ` 80.69 per share) on preferential basis to
Government of India (GOI) on 25.03.2015, amounting to `119,99,99,922.72.
# Investment includes ` 2.60 (` 2.60) crore invested in

Regional Rural Bank as Share Capital deposit pursuant to a
letter by Government of India
* Includes the following
a) Investments in 162 (162) shares (class B) of Master Card
Inc valued at ` 1(` 1)
b) Investments in 8 (8) shares of SWIFT valued at ` 1 (` 1)
c) Investment in 82,50,000 (80,00,000) shares of Malaysian
Ringgit 10 each amounting ` 143.28 crore (` 138.72 crore)
in India International Bank (Malaysia) BHD.
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 face value terms)
(` in crore)

Particulars

Minimum Maximum
Daily
Balance
outstanding outstanding Average as on 31st
during the during the outstanding March
year
year
during the 2015

year
Securities sold
under Repo
(i) Government
Securities
(ii) Corporate Debt
Securities
364.00
(41.60)
6604.00
(8580.00)
3590.44 6350.00
(1267.09) (5611.84)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
31.20
(52.00)
2267.20
(936.00)
141.59
(18.77)
520.00
(520.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
0.00
(0.00)
Securities purchased
under Reverse Repo
(i) Government
Securities
1.2 Investments
(` in crore)
Items
31st March
31st March

2015
2014
(1) Value of Investments
(i) Gross Value of Investments
#45500.56
(a) In India
#46575.37
(b) Outside India
*143.28
*138.72
(ii) Provision for Depreciation
219.22
282.66
(a) In India
(b) Outside India
0.00
0.00
(iii) Net Value of Investments
(a) In India
#46356.15
#45217.90
(b) Outside India
*143.28
* 138.72
(2) Movement of provisions held towards
depreciation on investments.
i) Opening balance
282.66
163.08
ii) Add: Provisions made during the
year
76.30
119.58
iii) Less: Write-off/(write-back)
139.74
0.00
of excess provisions during the year
iv) Closing balance
219.22
282.66

(ii) Corporate Debt

Securities
227
1.2.2.
i) \ (31.03.2015 )
( )

()

\
(1)
(2)
(3)

(4) (5) (6) (7)
1 ]

1362.68
(2097.18)
1332.80
(1991.91)
1003.65
(1543.36)
950.24
(1214.63)
567.38
(756.44)
127.00
(373.21)
958.37
(920.11)
871.25
(788.63)
/
5

321.79
(317.23)
321.79
(317.23)
1082.83
(657.59)
1082.83
(657.59)
171.40
(175.49)
57.80
(60.02)
1328.07
(1967.41)
98.07
(102.10)
5296.70
(6291.91)
4685.91 171.40 57.80 1426.14

(5343.20)
(175.49)
(60.02)
(2069.51)

7

8

219.22
(210.06)
5077.48
(6081.85)
4685.91
(5343.20)
(3) - \-8
-
171.40
(175.49)
57.80
(60.02)
1426.14
(2069.51)
1.2.3 , ' '()/

(\) 1437.54 (8164.59
(. )
) /]
/ /] (\)

29.63
2014-2015
2013-2014
(69.08 ) { '

315.77
293.71
()/ (\)
\
1966.45
3245.19
819.67 (5189.36 ) /]
/
316.79
312.23
/ /]

2478.47
2230.72
(\)
4.81 (0.00 )

5077.48 6081.85
{ (\)
ii) ]
] ] 27.54 (22.78 )

(. )
' '() ]

2014-2015
2013-2014
1.05 (0.76 ) {

109.79
33.89
1.2.4 \ 154.33

53.31
102.91
(0.35 ) ] ] ]
]
6.34
27.01
( ]

156.76
109.79
) 76.40 (0.18 ) ]

125.90
72.13

228

1.2.2. Non S.L.R. Investment Portfolio

(i) Issuer composition of Non SLR Investments (AS ON 31.3.2015)
(` in crore)
Sr.
Issuer
Amount
Extent of
Extent of
Extent of
Extent of
No.
(2)
(3)
Private
below
unrated
unlisted
(1)
Placement
Investment
securities
securities

(4)
Grade
(6)
(7)

Securities(5)
1 PSUs
1362.68
1332.80
1328.07

(2097.18)
(1991.91)
(1967.41)
2 FIs
1003.65
950.24

(1543.36)
(1214.63)
3 Banks
567.38
127.00

(756.44)
(373.21)
4
Private Corporates
958.37
871.25
171.40
57.80
98.07

(920.11)
(788.63)
(175.49)
(60.02)
(102.10)
5
Subsidiaries / Joint
321.79
321.79
Ventures
(317.23)
(317.23)
6 Others
1082.83
1082.83

(657.59)
(657.59)
Total
5296.70
4685.91 171.40 57.80 1426.14

(6291.91)
(5343.20)
(175.49)
(60.02)
(2069.51)
7
Less: Provision held
219.22

towards depreciation
(210.06)
8 Balance
5077.48 4685.91 171.40 57.80 1426.14

(6081.85)
(5343.20)
(175.49)
(60.02)
(2069.51)
Total under column 3 include the following categories of

investments specified in Schedule 8 to the Balance Sheet:
1.2.3 During the year, the Bank has shifted Central/State

Government securities aggregating `1437.54 crore
(` in crore)
(`8164.59 crore) from Available for Sale (AFS)
category/Held for Trading (HFT) category to Held to
Particulars
Net Value
Maturity (HTM) Category at lower of acquisition cost /

31st March-2015 31st March-2014
book value / market value and booked a shifting loss of
Shares
315.77
293.71
`29.63 crore (`69.08 crore) to Profit and Loss Account.
Bank also shifted Central/State Government Securities
Debentures & Bonds
1966.45
3245.19
aggregating to `819.67crore (`5189.36 crore) from
Subsidiaries / Joint Ventures
316.79
312.23
Held to Maturity (HTM) category to Available for Sale
Others
2478.47
2230.72
(AFS) category and booked a shifting loss of `4.81
crore (`0.00 crore). Bank also shifted investment of
Total
5077.48
6081.85
`27.54 crore (`22.78 crore) in Venture Capital funds
ii) Non Performing Non SLR Investments
from Held to Maturity (HTM) category to Available for

(` in crore)
Sale (AFS) category and provided a depreciation of
`1.05 crore (`0.76 crore).
Particulars
2014-15 2013-14
Opening Balance
109.79
33.89
53.31
102.91
Reduction during the year
6.34
27.01
156.76
125.90
109.79
72.13
Closing Balance
Total provisions held
1.2.4 The Bank has earned gross amount of `154.33 crore

(`0.35 crore) as Profit on Sale of Securities in HTM
category out of which an amount of `76.40 crore (`0.18
crore), net of tax and amount required to be transferred
to Statutory Reserve, has been appropriated to Capital
Reserve account as per RBI guidelines.
229
1.3
1.3.1 /]

( )
Particulars
2014-15 2013-14
]
] \-/

iii) \
]

]

] ] ]

) ] , ] ]

( )
, , , ]
.

2014-15
2013-14
]
(i)
]
]
] \
185.76
188.68
(-)
]
(ii) 31 \ 2013
]
) \ / \ /

]
(iii)

(-)
]
] ] \

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

] , ] ,
]

1.3.3 ]
) \ \ , ,
)
\, ,
, ]
) ] \

i) ] () ()
] ] ]
] / ] ]
, ] ,
] , \- ]
], , , ,
\ ]
] ]
, . 1500
] ]
( . 500 )
] ]
[\
]
\
]
ii)
] /
, ] , ],
]
, ,
] ] \ , , ,
] ] ,

]
1.3.2 ]
230

1.3 Derivatives
1.3.1 Forward Rate Agreement / Interest Rate Swaps

(` in crore)
Particulars
2014-15 2013-14
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:
(` in crore)
S.No. Particulars
Amount

2014-15 2013-14
(i) Notional principal

amount of exchange

traded interest rate

derivatives undertaken

during the year
(instrument-wise)

(8.83% G.Sec 2023)
185.76
188.68
(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:
ii) 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.
iii) The Bank has approved policies and procedures, counter
party exposure limits, delegation of powers, accounting
policy, ISDA documentation, reporting etc., for undertaking
forex derivatives in various forms of currency swaps and

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.
iiii) 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.
b) 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.
c) Policies for hedging and / or mitigating risk 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.
d) 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 the Board. Transactions for hedging
purposes are accounted for on accrual basis except
the swap designated with an asset / liability 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 the 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 is 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.
231
)
( )
31.03.2015 31.03.2014 31.03.2015 31.03.2014
( )

) \

)

II
]
) \

) (+)

) (-)

)

) (+)

) (-)

III
]

IV
] (100* 01)

) \

)

V
100* 01

) \

)

] \ `0.00 (` 0.00 )
()
1.4
( )
1.4.1 ]

2014-15 2013-14

(i) (%)
2.93
3.11
(ii) \[ ()
()
5857.60
3714.49
()
3424.25
2832.35
() ]
2405.31
689.24
()
6876.54
5857.60
(iii) \[
()
3342.47
2409.18
() ()
346.16
933.29
() ]
0.00
0.00
()
3688.63
3342.47
(iv) \[ ( )
()
2515.13
1305.31
()
1745.98
1489.23
() ]
1073.20
279.41
()
3187.91
2515.13
232

B) Quantitative Disclosure

S.No.
Particulars
Currency Derivatives
(` in crore)
Interest rate Derivatives
31.03.2015 31.03.2014 31.03.2015 31.03.2014
Derivatives (Notional Principal Amount)
NIL
NIL
NIL
NIL
a) For Hedging
NIL
NIL
NIL
NIL
b) For Trading
NIL
NIL
NIL
NIL
II
Marked to Market Positions
A. Hedging
NIL
NIL
NIL
NIL
a) Asset (+)
NIL
NIL
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
NIL
NIL
NIL
IV
Likely Impact of one percentage change in Interests rate

(100*PV01)
NIL
NIL
NIL
NIL
a) On hedging derivatives
NIL
NIL
NIL
NIL
b) On trading derivatives
NIL
NIL
NIL
NIL
Maximum and Minimum of 100*PV01 observed during the year
NIL
NIL
NIL
NIL
a) On hedging
NIL
NIL
NIL
NIL
b) On trading
NIL
NIL
NIL
NIL
Bank is having Mark to Market Position of `0.00 crore (`0.00 crore) 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 Asset Quality

1.4.1 Non-Performing Assets
(` in crore)
Particulars 2014-15
(i) Net NPA to Net Advances (%)
2.93
2013-14
3.11
(ii) Movement of NPAs (Gross)

(a) Opening Balance
5857.60
3714.49
(b) Additions during the year
3424.25
2832.35
2405.31
689.24
(d) Closing Balance
6876.54
5857.60
(iii) Movement of Net NPAs

(a) Opening Balance
(b) Additions during the year (Net)
(d) Closing Balance
3342.47
2409.18
346.16
933.29
0.00
0.00
3688.63
3342.47
(iv) Movement of provisions for NPAs (excluding provisions on standard assets)

(a) Opening Balance
2515.13
1305.31
(b) Provisions made during the year
1745.98
1489.23
(c) Write off/write back of excess provisions
1073.20
279.41
(d) Closing Balance
3187.91
2515.13
233
1.4.2 \
(` )
Sl.No \

1.
1

40
0
2
0
42
126
3 1
0
130
110
1
0
0
111
276
4
3
0
283

\

3540.72 0.00 117.29
(

)* 31.03.2014

428.93 0.00 0.00

2.
3.
4.
5.
6.
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
0.00 428.93
0.00 910.33
30.80
0.00 0.00 0.00
30.80 450.60
0.00 0.00
0.00 450.60
910.33
0.00
0.00
2014-15

\

11
0
1
0
12
27
0 1
0
28
56
1
1
1
59
94
1
3
1
99

1147.57 0.00 175.82 0.00 1323.39 337.68 0.00 0.71 0.00 338.39 4293.98 44.62 5.07 0.02 4343.69 5779.23 44.62 181.60 0.02 6005.47

2014-15

]

\\
/
]

2014-15

\

2014-15

\

31.03.2015

\

7. ( )

109.73
0.00
0.00
0.00 109.73
20.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
117.74
5.19
10
0.00 0.00 0.00

0
20.50 303.35
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00 0.00 0.00
16
117.74
55.20
5.19
2.15
10
30
4.31 0.00
0
0.00 307.66
433.58
4.31
0.00
0.00 437.90
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
16
16
16
37
37
55.20 218.50
218.50
391.44
391.44
2.15
8.21
8.21
15.55
15.55
-2
30
17
-1
17
57
-3
57
831.73
0.00
0.00
0.00 831.73 120.17 13.96 -13.96 0.00 120.17 802.64 16.72 -16.72
0.00 802.64 1754.54 30.68 -30.68
0.00 1754.54
88.03
0.00
0.00
0.00
88.03
5.27
0.00
52.09
145.39
0.00
0.00
0.00 145.39
12
19
48.29
0.00
0.40
0.00
48.69
45.28
0.00 184.15
277.72
0.10
0.54
36
39
95
257
3690.53
379.83
0.00 0.00 0.00

0
0.10 0.14 0.00
5.27
52.09
12
45.52 184.15
100
126
0.00 0.00
0
0.00 0.00
130
0.00 292.71
0.00 3983.24 817.64
2.33 21.75 0.00 841.72 9474.02 44.62 21.79
0.02 9540.45 13982.19 46.95 336.25
0.00
0.00 379.83
0.00 0.00 0.00
0.00 640.60 1062.00
0.00
45.88
45.88 636.29
4.31 0.00
4.31
19
0.00 278.36
269
0.02 14365.41
0.00 0.00 1066.31
* \ , ] ] \\ ,
\ 1. . 2 66 / / 742.69
2. 6 , \ / (17 106 )
0.63 ] 9 19 17 2
] , ] \, 2014 \ -
\
234

1.4.2 Particulars of Accounts Restructured
Disclosure of Restructured Accounts
Sl.No Type of Under CDR Mechanism
Under SME Debt

Restructuring Mechanism
Restructuring
1.
(` in crore)
Total
Asset Classification Stan Sub Doub Loss Total Stan Sub Doub Loss Total Stan Sub Doub Loss Total Stan Sub Doub Loss Total

dard stan tful
dard stan tful
dard stan tful
dard stan tful
Details
dard
dard
dard
dard
Restructured
No. of

Accounts
as on borrowers
40
0
2
0
42
126
3 1
0
130
110
1
0
0
111
276
4
3
0
283

April 1 of the

Amount
3540.72 0.00 117.29
FY.(opening

figures)*
- as on outstanding
31.03.2014

Provisions 428.93 0.00 0.00
2.
Others

Fresh

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
0.00 428.93
0.00 910.33
30.80
0.00 0.00 0.00
30.80 450.60
0.00 0.00
0.00 450.60
910.33
0.00
0.00
59
94
99
No. of
borrowers
11
12
27
28
56
No. of
borrowe rs
restructuring

Amount
1147.57 0.00 175.82 0.00 1323.39 337.68 0.00 0.71 0.00 338.39 4293.98 44.62 5.07 0.02 4343.69 5779.23 44.62 181.60 0.02 6005.47
during
the

outstanding
year
2014-15

Provisions 109.73 0.00 0.00 0.00 109.73 20.50 0.00 0.00 0.00 20.50 303.35 4.31 0.00 0.00 307.66 433.58 4.31 0.00 0.00 437.90
Upgradations
3. to restructured

standard

category

during
the FY
2014-15

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
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
0.00
No. of
borrowe rs
16
16
16
16
37
37
Amount
outstanding 117.74
117.74
55.20
55.20 218.50
218.50
391.44
391.44
Provisions
5.19
5.19
2.15
2.15
8.21
8.21
15.55
15.55
5. of restructured borrowers
10
30
-2
30
17
-1
17
57
-3
Provisions
No. of
borrowers
88.03

4. Restructured

standard
advances
which cease to
attract higher
provisioning
and / or
additional
risk weight

at the end of

the FY and
hence need
not be shown
as restructured
standard
advances at the
beginning of the
next
FY
6.

Downgradations
No. of
10
accounts
during

the
FY
2014-15

Write-offs
of

restructured
Amount
outstanding 831.73
0.00
0.00
0.00 831.73 120.17 13.96 -13.96 0.00 120.17 802.64 16.72 -16.72
0.00 802.64 1754.54 30.68 -30.68
0.00 1754.54
0.00
0.00
0.00
88.03
5.27
0.00
52.09
145.39
0.00
0.00
0.00 145.39
12
19
48.29
0.00
0.40
0.00
48.69
45.28
0.00 184.15
277.72
0.10
0.54
36
39
95
257
accounts
the FY Amount
during

outstanding
2014-15
Restructured

Accounts
as

on 31.03.15

7. (Closing

Balance)

No. of
borrowers
0.00 0.00 0.00

0
0.10 0.14 0.00

1
5.27
52.09
12
45.52 184.15
100
126
0.00 0.00
0
0.00 0.00
1
130
Amount
outstanding 3690.53
0.00 292.71
0.00 3983.24 817.64
2.33 21.75 0.00 841.72 9474.02 44.62 21.79
0.02 9540.45 13982.19 46.95 336.25
Provisions
0.00
0.00 379.83
0.00 0.00 0.00
0.00 640.60 1062.00
379.83
0.00
45.88
45.88 636.29
4.31 0.00
4.31
57
19
0.00 278.36
1
269
0.02 14365.41
0.00 0.00 1066.31
* Excluding the figures of standard restructured advances which do not attract higher provision of risk weights.
FOOT NOTE : 1. Figures under Sl no 2 include a sum of ` 742.69 crore towards fresh/additional disbursements/increase in liabilities in 66 number of existing accounts. 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 17 and partial recoveries in 106 a/cs) in existing accounts. The provision for these closed accounts is `0.63 crore which is not included
in the statement. In sl no.6 out of 19 accounts, 17 accounts are closed one and 2 accounts pertain to two entities of the same borowers which were merged into one account in this year. Further one account, which has been
considered as a restructured account in March 2014 not considered as a restructured account in the year by including the same in FRESH-STANDARD OTHERS as per RBI Guidelines.
235
1.4.3 \ /
\
( )
2014-15 2013-14
(i)

(ii) / \

( )
(iii)

(iv)

(v) /
1.4.4 \/ ]
i) ]
20.28
0.00
70.39
1521.00
1307.82

2014-15
(i)
9.64
]
(ii)
0.88
]
(iii)
1.94
\
2013-14
(iv) (%)
0.38
(v) \ * (]
] ) (` )
15.36
0.29
(vi) \ * (` ) #
20.28

236
0.03
9.40
0.88
1.82
13.47
0.02
12 ,
1949 27 X {
(\ , , )

12
, 1949 27 X {
(\ ,
, )
* \ ] (] )
]
/

#

0.00
31 \-2014
1.5
31-\-15 31-\-14 31-\-15 31-\-14 31-\-15 31-\-14

70.39
31 \-2015
) { 31.03.2015
13.00 ( 26 ) ] ..
]

)

2014-15 2013-14
1
\
1
3
2

161.34
29.49
3

52.75
20.00
9/21.04.048/2014-15
01.07.2014, 8
66.72
\ ] 2014 8.34
\ \, 2015 25.02
31 03 2015 \ 41.70
iii) ] { () { ()
( )
1.4.6
2014-15 2013-14
1 )

2 )

\

ii) \ ]
( )
( )
* 433.50 ( 527.32 ) \
( )
1.4.5


1.4.3 Details of financial assets sold to Securitization /
Reconstruction Company for Asset Reconstruction
(` in crore)
Particulars
2014-15 2013-14

(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:
i) Details of non performing financial assets purchased
(` in crore)
Sl. No. Particulars
2014-15 2013-14

1
a) No. of accounts
purchased

during the year
NIL
NIL

b) Aggregate outstanding
NIL
NIL
2
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
2014-15 2013-14

1
No. of accounts sold
1
3
2
Aggregate outstanding
161.34
29.49
3
Aggregate consideration

received
52.75
20.00
In terms of RBI Master Circular no. DBOD. No.
BP.BC9/21.04.048/2014-15 dt. 01-07-2014, Bank has decided
to amortize `66.72 crore being the shortfall on account of sale
of asset to ARC over a period of 8 quarters. Accordingly `8.34
crore per quarter was amortized commencing from Sept.
2014. After providing upto March 2015 aggregating to `25.02
crore, the balance outstanding pending for amortization as
on 31.03.2015 is `41.70 crore
iii) Sale of Financial Assets to Securitization Companies
(SCs) andReconstruction Companies (RCs)
1.4.5 Provisions on Standard Assets:

Particulars
Provisions towards Standard Assets*
Backed by NPAs
Backed by NPAs
underlying
financial institutions/
non-banking financial
companies as
underlying

Book value of
investments in
security receipts
a) Floating Provision of `13.00 crore (`26.00 crore) is held

as at 31.03.2015 in respect of gross non performing
advances over and above the minimum prescribed as per
guidelines issued by Reserve Bank of India with a view to
strengthening the financial position of the Bank.
b) The above floating provisions netted off from advances.
1.5 Business Ratios
Particulars
20.28
0.00
0.00
9.64
9.40
(ii) Non-interest income as percentage to working funds
0.88
0.88
(iii) Operating profit as percentage to working funds
1.94
1.82
(iv) Return on assets (%)
0.38
0.29
15.36
13.47
0.03
0.02
(vi) Profit* per employee (`in crores)#
Working funds reckoned as average of total assets

(excluding accumulated 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, 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.
For the purpose of computation of business per

employee (deposits plus gross advances) inter-bank
deposits are excluded.
Based on the number of employees as at year end.
Total
70.39
2014-15 2013-14
(i) Interest income as percentage to working funds
(v) Business* (deposits plus advances)

per employee (`in crores)
31-Mar-15 31-Mar-14 31-Mar-15 31-Mar-14 31-Mar-15 31-Mar-14

70.39
1307.82
1.4.6 Floating and additional provisions :
sold by the Bank as sold by other banks/
1521.00
*Including provision for sacrifice in respect of restructured

standard assets amounting to `433.50 crore(` 527.32 crore).
(` in crore)
Particulars
(` in crore)
20.28
237
1.6 :

(` )
31.03.2015
1
2-7
8-14
15 - 28 29 days - 3 6 1 3 5

3

6 1 3 5
1155.88 5444.31 2117.18 4895.44 27521.34 24731.01 41050.65 21425.52 12612.18 14058.73 155012.24
(1121.85) (3606.81) (1581.57) (2559.17) (30951.04) (18293.83) (31866.28) (49032.30) (1450.59) (1381.67) (141845.12)
419.30 1455.21 1672.28 1901.00 12151.85 7263.36 13597.12 52052.84 14194.11 21247.66 125954.73
(307.33) (860.30) (1886.75) (1893.24) (12322.53) (6349.70) (9811.65) (44007.62) (12744.96) (17460.14) (107644.20)
21.86 632.27
2.00 158.88 3144.78 1652.99 315.98 5468.28 5702.20 29619.41 46718.65
(29.74) (709.61) (390.82) (784.82) (791.23) (301.24) (1159.18) (4918.46) (6910.49) (29643.70)(45639.28)

0.00 3572.33 2362.50 1062.50 1225.01 988.70 2109.63
56.91 3376.84 552.79 15307.21

(135.18) (5710.75) (127.18) (543.30) (1887.37) (623.90) (803.57) (533.58) (1300.10) (1520.17) (13185.09)

364.72
67.24
98.21
147.18 628.37 860.53
0.00
0.00
0.00
0.00 2166.26

(507.09) (32.88) (44.25) (100.08) (528.10) (768.88)
(4.59) (0.00)
(0.00) (0.00) (1985.87)

90.93
(194.36)
65.97
(61.61)
64.42
67.37 892.40 896.15 1055.11
(0.78) (122.52) (1544.49) (262.59) (118.85)
130.93
173.37
(70.77) (160.64)
0.00 3436.66
(0.00) (2536.61)
1.7 ]
1.7.1. ]
(` )
) ]

i) - ]

]

ii) ] -]

( , , ] , ,

] , , , ,

) ] -

( .3306.67 ( 2857.18 ) + -

. 118.27 (128.27 )
iii) () ]
.

. ] .

) ]

(\) (\)
] ( .3551.94 ( 1847.98 )

+ - . 257.33 ( 303.91 )
]
31 \ 2015

31 \ 2014
9928.17
6379.27
7918.77
5594.48
3424.94
2985.45
70.39
--
---
3809.27
2151.89
17232.77 13056.11
238

1.6 Asset Liability Management:

(` in crore)
Maturity pattern of certain items of Assets & Liabilities as on 31.03.2015

Deposits

Day 1

2-7
days

8-14
days

15 - 28 29 days -
Over
Over
Over
Over
Over
days 3 months 3 months 6 months 1 year & 3 years & 5 years

& upto & upto
upto
upto

6 months 1 year
3 years 5 years
Total
1155.88 5444.31 2117.18 4895.44 27521.34 24731.01 41050.65 21425.52 12612.18 14058.73 155012.24
(1121.85) (3606.81) (1581.57) (2559.17) (30951.04) (18293.83) (31866.28) (49032.30) (1450.59) (1381.67) (141845.12)
Loans / Advances 419.30 1455.21 1672.28 1901.00 12151.85 7263.36 13597.12 52052.84 14194.11 21247.66 125954.73

(307.33) (860.30) (1886.75) (1893.24) (12322.53) (6349.70) (9811.65) (44007.62) (12744.96) (17460.14) (107644.20)
Investments

21.86 632.27
2.00 158.88
(29.74) (709.61) (390.82) (784.82)
3144.78 1652.99 315.98 5468.28 5702.20 29619.41 46718.65

(791.23) (301.24) (1159.18) (4918.46) (6910.49) (29643.70) (45639.28)
Borrowings

0.00 3572.33 2362.50 1062.50 1225.01

(135.18) (5710.75) (127.18) (543.30) (1887.37)
988.70
(623.90)
2109.63
(803.57)
Foreign
Currency Assets
364.72
(507.09)
67.24
(32.88)
628.37
(528.10)
860.53
(768.88)
0.00
(4.59)
Foreign Currency
90.93
Liabilities
(194.36)
65.97
(61.61)
64.42
67.37
892.40
(0.78) (122.52) (1544.49)
896.15
(262.59)
1055.11
(118.85)
98.21 147.18
(44.25) (100.08)
56.91 3376.84
552.79 15307.21
(533.58) (1300.10) (1520.17) (13185.09)
0.00
(0.00)
0.00
(0.00)
0.00 2166.26
(0.00) (1985.87)
130.93 173.37
(70.77) (160.64)
0.00 3436.66
(0.00) (2536.61)
As compiled by the management and relied upon by the Auditors

1.7. Exposures
1.7.1 Exposure to Real Estate Sector

(` in crore)

Category
As on
As on

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;
9928.17
7918.77

Of which individual housing loans eligible in inclusion in priority sector
6379.27
5594.48
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,
3424.94
2985.45

land acquisition, development and construction etc.).Exposure would

also include non- fund based (NFB) limits.

(Fund based `3306.67 crore (` 2857.18 crore)+ Non fund based

` 118.27 crore ( ` 128.27 crore))
iii) Investments in Mortgage Backed Securities (MBS)

and other securitized exposures
a. Residential
70.39
-
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 ` 3551.94

crore (` 1847.98 crore)+ Investment ` 257.33 crore (` 303.91 crore))
3809.27
2151.89
Total Exposure to Real Estate Sector
17232.77 13056.11
239
1.7.2 ] ] ]

31 \ 2015

(i) \/ \

]
(ii) // \ (/ ),

, \ \

(iii) ] ] \

\
(iv) ] \

\ ] ]

\ \

] ,
(v)

]
(vi) / /\ ]

]
(vii) /
(viii) \ \

(ix) ]
(x) ] ]
(] ])
] ] ]
1.7.3 ] ]*
]

(1)
( 2)
( 1)
( 2)
( 1)
\\ ( 2)
\\ ()

(` )
31 \ 2014
150.03 165.75
0.19 0.00
221.49 250.64
0.00 0.00
101.50 0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00 50.00
293.01
766.22
226.61
693.03
(` )
\ 31, 2015
\ 31, 2014
] () ] ()
1424.12

1626.80
880.12

743.74
85.70

216.40
18.44

3.17
0.13

6.99
0.00

0.00
0.00

0.00
2408.51 2597.10
*
] 1% , ]

240

1.7.2 Exposure to Capital Market

Particulars

(` in crore)
As on
31st March-2015
(i)

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.
(ii)

Advances against shares / bonds / debentures or other securities or

on clean basis to individuals for investment in shares (including
IPOs/ESOPS), convertible bonds, convertible debentures and units of
equity oriented mutual funds.
As on
31st March-2014
150.03
165.75
0.19
0.00
221.49
250.64
0.00
0.00
101.50
0.03
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
(ix) Financing to stock brokers for margin trading.
0.00
50.00
(x) All exposures to venture capital funds (both registered and unregistered).
293.01
226.61
Total Exposure to Capital Market
766.22
693.03
(iii) 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.
(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.
(v) Secured and unsecured advances to stock brokers and guarantees

issued on behalf of stock brokers 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.
1.7.3 Risk Category wise Country Exposure*

Risk Category

As on March 31, 2015

Exposure (net)
Insignificant (A1)
Provision held
(` in crore)
As on March 31, 2014

Exposure (net)
Provision held
1424.12
NIL
1626.80
NIL
880.12
NIL
743.74
NIL
Moderately Low (B1)
85.70
NIL
216.40
NIL
Moderate (B2)
18.44
NIL
3.17
NIL
Moderately High (C1)
0.13
NIL
6.99
NIL
High (C2)
0.00
NIL
0.00
NIL
Very High (D)
0.00
NIL
0.00
NIL
Low
Total
(A2)
2408.51 2597.10
*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.
241
1.7.4. (]),
(])
(` )
] ] ]

]
1.7.5. , ]
(. )
\-9 II- ] ] ]
( %)
1.8 -

(` )
2014-15 2013-14
552.61
231.00
27.00
67.00
0.15
0.15
2.3.1 \
\ \ ] /
\
\ \
]
\ , ,
]
\ \ ] , ]
, \ , 1972
\
2.3.2
] \
] ] \ ] 29.09.1995
01.04.2010
\ ]
\ ]
\ ]
01.04.2010 \
] , ] \ 10%
]
]
2.3.3
1.9 ..
1. { .
\
, 1949 46(4)
0.10 ( 2.50 ) (
- - \ )
2. ] , ]
]
,
2.1. 5, ,
] ...
]

2.2 9 ]
\ 17 (2)
/ ]
2.3 - 15 \
\
\
] \
10% -
\

2.3.4
\ /\ /
240
-
50% 120
]

2.3.5 ] - 15
() ]
\ ()
01.04.2007 ]
-15 ()
242
()

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,
Name of the Exposure Limit Period during Maximum
payable every year. In accordance with the gratuity
borrower ceiling sanctioned which limit Amount
funds rules, actuarial valuation of gratuity is done every

exceeded outstanding
year. Actuarial valuation of gratuity liability is calculated

during the
based on certain assumptions regarding discount rate,
period
salary growth, mortality and staff attrition as per the

--
--
--
--
-projected unit credit actuarial method.

The gratuity payable to the employees is worked out by
The bank has not exceeded the ceiling for Single Borrower or
way of two methodologies i.e., as per the Payment of
Group Borrower wise exposures in any of the Group accounts.
Gratuity Act, 1972 and other as per service rules and the
1.7.5 Unsecured advances: The amount of advances, for
employee will be entitled to get most beneficial amount.
which intangible securities, such as charge over the rights,
2.3.2 Pension
licenses etc., have been taken as security is NIL ( NIL)
Bank pays pension under a defined benefit plan
and the said advances have been classified as unsecured
covering the employees who have opted for pension
forming part of Unsecured advances in Schedule 9 Item
and also to the employees joining the Banks service
II-C. Such advances constitute NIL% (NIL%) of total
on or after 29.09.1995 but before 01.04.2010.The plan
unsecured advances.
provides for a pension on a monthly basis to these
employees on their cessation from the banks service
1.8 Amount of Provisions for Income-tax for the year
as provided for in Andhra Bank Employee Pension
( ` in crore)
Regulations. Pension Fund is managed by Andhra
Bank Employees Pension Fund Trust.
Particulars
2014-15 2013-14

Employees who joined on or after 01.04.2010 are
Provision for Income Tax
552.61
231.00
entitled to Defined Contributory Pension scheme where
Deferred Tax
27.00
67.00
under the employee will contribute 10% of pay and
Wealth Tax
0.15
0.15
eligible allowance with equivalent contribution being
made by the Bank and the same will be maintained
1.9 Penalties imposed by Reserve Bank of India
as per the guidelines issued by the Pension Fund
Regulatory and Development Authority from time to

Monetary Penalty to the tune of `0.10 crore (`2.50
time.
crore) has been imposed by Reserve Bank of India
under Section 46(4) of the Banking Regulation Act, 2.3.3 Provident Fund
1949, for not obtaining necessary information and

Bank is statutorily required to maintain a provident fund
as a part of its retirement benefits to the employees.
declaration from M/s Deccan Chronicle Holdings Ltd.
The fund is administered by a trust. Each employee
about the credit facilities enjoyed by it from other banks
contributes 10% of their basic salary and eligible
(for deviation in implementation of KYC-AML guidelines
allowances and Bank contributes an equal amount
in the bank).
to the fund in respect of non-pension optees. The
2 Disclosures requirements as per Accounting
investment of the fund is made according to the
Standards (AS) issued by the Institute of Chartered
investment pattern prescribed by Government of India.
Accountants of India where RBI has issued
2.3.4 Leave Encashment
guidelines in respect of disclosure items.

An employee is entitled to encash privilege leave
2.1 Accounting Standard 5 Net profit or loss for
standing to his/her credit subject to a maximum of
the period, prior period items and changes in
240 days on the date of superannuation/Voluntary
accounting policies
Retirement/death and on resignation encashment of

There is no material prior period item included in Profit
privilege leave will be restricted to the tune of 50% of
privilege leave standing to the credit of the employee
and Loss account which is required to be disclosed as
subject to a maximum of 120 days.
per the Accounting Standard issued by the Institute of
Actuarial valuation of leave encashment liability is done
Chartered Accountants of India read with guidelines
every year and accordingly, Bank is contributing to the
issued by Reserve Bank of India.
fund.
2.2 Accounting Standard 9 Revenue Recognition
2.3.5 The
summarized position of post-employment benefits

As mentioned in Accounting Policy (2) of Schedule 17
and
long term employee benefits recognized in the
certain items are accounted on cash basis on account
Profit & Loss Account and Balance Sheet as required
of statutory/regulatory requirements and materiality.
in accordance with Accounting Standard 15 (Revised)
2.3 Accounting standard 15 Employee benefits
issued by the Institute of Chartered Accountants of India

Bank has adopted Accounting Standard 15 (Revised)
are as under :
issued by the Institute of Chartered Accountants of India
with effect from 01.04.2007
1.7.4 Details of Single Borrower Limit (SGL), Group
Borrower Limit (GBL) exceeded by the bank
(` in crore)
243
()
()
( ` )
(` )
\

\

() ()
()
\

\

() ()
()

3180.74 543.26
320.80

(2834.32)
(*)
(*)
]
290.72
49.71
29.35

(230.15)
(*)
(*)
\
337.95
43.54
7.97

(177.85)
(48.90)
(*)

--
--
-
(--) (494.36)
(*)

-197.50
-79.14
-58.56

(-157.54)
(*)
(*)

137.53
-35.85
29.21
/() (95.96)
(*)
(*)

3749.44
521.52
328.77

(3180.74) (543.26)
(320.80)
( ` )
--
--
564.02
(573.50)
329.57
(299.81)

]
3751.82
\
(3321.96)
564.02
(573.50)
329.57
(299.81)
-42.50
(-30.24)
(20.99)
-
(-141.22)
( ` )
\

\

() ()
()

]
3321.96
573.50
299.81
\
(2841.90)
(561.83)
(283.35)

-138.84
--
20.99

(-)
]
]
291.54
64.66
-
(269.57)
(47.00)
(26.00)

474.66
5.00
67.33

(368.03)
(30.00)
(36.00)

-197.50
-79.14
-58.56

(-157.54)
(-65.33)
(-45.54)

--
()
]
3751.82
\ (3321.96)
328.77
(320.80)
()
* \ , 31 03
2014
\ ]
, \

() ] \

3749.44
521.52
(3180.74) (543.26)
\

\

() ()

()

337.95
(177.85)
43.54
(48.90)
290.72
(230.15)
49.71
(*)
29.35
(-)
-291.54
(-269.57)
-64.66
(-47.00)
-(-26.00)
-35.85
(*)
29.21
(*)
137.53
(95.96)
7.97
(320.80)

(/)
-
$
93.67
(93.66)
33.00
(33.00)
-(--)
568.32
(328.05)
25.74
(32.76)
66.53
(56.99)
* \ , 31 03
2014
\ ]
, \

$ 1/5 93.67 \
1/5 33.00
244

(a) Changes in the present value of the obligations:
(c) Amount recognized in Balance Sheet:
( ` in crore)
EMPLOYEE
PENSION GRATUITY
LEAVE
BENEFITS
(Funded)
(Funded)
ENCASHMENT

(Funded)
Present value
of obligation
3180.74
543.26
320.80
as at the
(2834.32)
(*)
(*)
beginning of
the year
Interest Cost
290.72
49.71
29.35

(230.15)
(*)
(*)
Current
337.95
43.54
7.97
Service Cost
(177.85)
(48.90)
(*)
Past Service Cost
--
--
-for New Optees
(--)
(494.36)
(*)
Benefits Paid
-197.50
-79.14
-58.56

(-157.54)
(*)
(*)
Actuarial loss/
137.53
-35.85
29.21
(gain) on
(95.96)
(*)
(*)
obligations
Present value
3749.44
521.52
328.77
of obligation at
(3180.74)
(543.26)
(320.80)
year end
*Previously the valuation was obtained from the Actuary
of LIC, but when finalized 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
3321.96
573.50
299.81
the beginning
(2841.90)
(561.83)
(283.35)
of the year
Diff. on OB
-138.84
-
20.99

(-)
Acquisition
-
-
Adjustments
Expected
291.54
64.66
Return on
(269.57)
(47.00)
(26.00)
Plan Assets
Employer's
474.66
5.00
67.33
contribution
(368.03)
(30.00)
(36.00)
Benefits Paid
-197.50
-79.14
-58.56

(-157.54)
(-65.33)
(-45.54)
Actuarial Loss/
-
-
(gain) on
Obligations
Fair Value of
Plan Assets at
3751.82
564.02
329.57
the end of the
(3321.96)
(573.50)
(299.81)
year
EMPLOYEE
BENEFITS

(` in crore)
LEAVE
ENCASHMENT
(Funded)
PENSION
(Funded)

GRATUITY
(Funded)

3749.44
(3180.74)
521.52
(543.26)
328.77
(320.80)
3751.82
(3321.96)
564.02
(573.50)
329.57
(299.81)
Net Liability
-
-42.50
recognized in
(- 141.22)
(- 30.24)
Balance Sheet
-(20.99)
Estimated
Present Value
of Obligations
as at the end
of the year
Fair Value of
Plan Assets
as at the end
of the year
d) Expenses recognized in Profit & Loss Account:

(` in crore)
EMPLOYEE
PENSION GRATUITY
LEAVE
BENEFITS
(Funded)
(Funded)
ENCASHMENT

(Funded)
Current Service
Cost
337.95
(177.85)
43.54
(48.90)
7.97
(320.80)
Interest Cost

290.72
(230.15)
49.71
(*)
29.35
(-)
Expected
return on
Plan Asset
-291.54
(-269.57)
-64.66
(-47.00)
-(-26.00)
Net Actuarial
(Gain)/ Loss
recognized
in the year
137.53
(95.96)
-35.85
(*)
29.21
(*)
Past Service Cost-

recognized $
93.67
(93.66)
33.00
(33.00)
-(--)
568.32
(328.05)
25.74
(32.76)
66.53
(56.99)
Total Expenses
recognized in
Profit & Loss
Account /
contributed
to funds
*Previously the valuation was obtained from the Actuary of LIC, but when
finalised 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.
$ Amortization of Rs. 93.67 crore, being 1/5th of the additional pension liability
and Rs. 33 crore being 1/5th of additional liability on account of gratuity.
245
(.)

]

]
359.42
(496.18)
70.71
(196.46)
9.58
(14.94)
1.88
(5.91)
655.14
17.46
(2517.84)
2424.72
(106.37)
241.83
(5.11)
(` )
%
3751.82
(3321.96)
(` )
/ ]
]
1.04.2013
18.64 0.39 50.25
0.88
1.25
(13.38) (0.40) (36.59) (0.67) (1.69)
(75.80)
31.03.2015
64.63
(3.20)
31.03.2014
6.45
(0.15)
--
--
--
--
--
--
--
--
--
--
3.47
0.15
2.50
100.00
(100.00)
7.80
(9.15)
7.80
(9.15)
]
9.00
9.00

(9.00)
(9.00)

9.00
(9.00)

5.00
4.00

(5.00)
(5.00)

4.00
(5.00)
21.54 0.38 53.73
1.03
3.75
(18.64) (0.39) (50.25) (0.88) (1.25)
2.90 0.00
(5.26) (-0.01) (13.66) (0.21) (-0.44)
(^) \ :

\

() () ()

%
%
%
7.80
(9.14)

1.04.2014
(\) (
)
(]) \ ( )
` 1.04
(1.04 )
( )
` 0.62
(0.62 )
2.3.6 : ( ]
\ )
2010-11 ... .
.. 80/21.04.018/2010-11 09 , 2011
\ \
\ 3.50 . 10
\ \ ]
\ 31 \,
2014 126.67 93.67
] 1/5 33 ,
] \ 1/5
\
,
, ] \ ]
]
\) \
] - ]
\

,
\ ,

2.3.7 1 , 2012
.140.54 ( 99.75 )

246

(e) Investment details of Pension Fund Trust:
Description of investments
Amount
Central Government Securities
359.42
(h) Other long term employees benefits (Un-Funded)
(` in crores)
% of investments
(` in crore)

LTC / LFC Silver Sick Ex-Gratia Relocation

Encashment Jubilee Leaves

Expenses

Award

Liability as on
01.04.2014
18.64 0.39 50.25
0.88
1.25
01.04.2013
(13.38) (0.40) (36.59) (0.67)
(1.69)
Liability as on
31.03.2015
21.54 0.38 53.73
1.03
3.75
31.03.2014
(18.64) (0.39) (50.25) (0.88)
(1.25)
9.58
(496.18) (14.94)
State Government Securities

70.71
1.88

(196.46) (5.91)
Investments in PSUs
655.14
17.46
(2517.84) (75.80)
Other Investments
2424.72
(106.37) (3.20)
Bank Balance
64.63
241.83
Transitional
Liability
6.45
3751.82
(3321.96) (100.00)
100.00
Discount Rate

PENSION
(Funded)
(%)
GRATUITY
(Funded)
(%)
Expected Rate
9.00
9.00
of Return on
(9.00)
(9.00)
Plan Assets
LEAVE
ENCASHMENT
(Funded) (%)
7.80
7.80
(9.14) (9.15)
Projected Projected
unit credit unit credit
Short term Compensated Absences

(j) Contribution to Provident Fund

7.80
(9.15)
-
-
: ` 1.04 crore
(1.04 crore)
: ` 0.62 crore
(0.62 crore)
2.3.6 Prudential Regulatory treatment (reopening of

Pension option and enhancement of gratuity)
9.00
(9.00)
During the year 2010-11, the Bank opted for amortization

of additional liability arising on account of exercise of
Expected Rate
5.00
4.00
4.00
of Salary
(5.00)
(5.00)
(5.00)
Increase
Method Used

-
-
(i) Short term employees benefits:
(f) Principal Actuarial assumption at the Balance Sheet

Date (expressed as weighted average):
ACTURIAL
ASSUMPTIONS

-
-
Amount debited
2.90 0.00
3.47
0.15
2.50
to Profit &
(5.26) (-0.01) (13.66) (0.21) (-0.44)
Loss Account
(5.11) (0.15)
Total
-
-
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
Projected
unit credit
pursuant to permission given by Reserve Bank of India

vide its circular no. DBOD.BP.BC.80/21.04.018/2010-11
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.
dated 09th of February, 2011. Out of the aggregate carried

forward amount of `126.67 crore on 31st March 2014,
an amount of `93.67 crore being 1/5th of the additional
(g) The financial assumptions considered for the

calculations are as under:-
pension liability and `33 crore, being 1/5th of additional

liability on account of gratuity has been charged off to the
Discount Rate: - The discount rate has been chosen by

reference to market yield on government bonds as on the
date of reporting.
Profit and Loss Account for the current year.

2.3.7 Provision of `140.54 crore (previous year `99.75 crore)
Expected Rate of Return: In case of pension, the expected

rate of return is taken on the basis of yield on government
bonds. In case of gratuity and leave encashment the actual
return has been taken.
has been made towards wage revision arrears effective

from 1st November, 2012 pending wage settlement.
Salary Increase: On the basis of past data

247
2.4 17 ( )

(i) ... -17 ] \,/ ,
\ / \
(ii) ] ]
(iii) ] ]
, \ ,

(` )

2014-15
2013-14
.
1
]

() ]
4,079.85
3,680.66

() /
6,701.97
6,268.65

()
5,362.29
4,676.08

() \
1,724.34
1,004.77

17,868.45
15,630.16
- ]
-
\
17,868.45
15,630.16
2

() ]
753.12
649.99

() /
1,237.15
1,107.03

()
989.85
825.78

() \
318.32
177.44

3,298.44
2,760.24

2,080.24
2,026.51

1,218.20
733.73

579.76
298.15

638.44
435.58
3

() ]
49,427.64
49,941.04

() /
86,087.78
72,100.34

()
43,805.45
41,129.64

() \
2,818.96
1552.98

.)
3,030.52
2,616.93

1,85,170.35
167,340.93
4

() ]
47,850.10
48,670.01

() /
83,525.29
69,722.52

()
41,607.07
39,147.76

() \
2,045.46
1,007.31

.)
78.34
55.88

1,75,106.26
158,603.48

]
10,064.09
8,737.45

1,85,170.35
167,340.93
248

2.4 Accounting Standard 17 Segment reporting (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.
(` in crore)

Business Segments
Sl.No
2014-15
2013-14
1
Segment Revenue

(a) Treasury
4079.85
3680.66

(b) Corporate/Wholesale Banking
6701.97
6268.65

(c) Retail Banking
5362.29
4676.08

(d) Other Banking Operations
1724.34
1004.77

Total
17868.45
15630.16

Less: Inter Segment Revenue
-

Income from Operations
17868.45
15630.16
2
Segment Results

(a) Treasury
753.12
649.99

1237.15
1107.03

(c) Retail Banking
989.85
825.78

318.32
177.44

Total
3298.44
2760.24

Less : Other Un-allocable Expenditure
2080.24
2026.51

Total Profit Before Tax
1218.20
733.73

Income Tax and other taxes paid
579.76
298.15

Net Profit
638.44
435.58
3
Segment Assets

(a) Treasury
49427.64
49941.04

86087.78
72100.34

(c) Retail Banking
43805.45
41129.64

2818.96
1552.98

(e) Un-allocable Assets
3030.52
2616.93

Total Assets
185170.35
167340.93
4
Segment Liabilities

(a) Treasury
47850.10
48670.01

83525.29
69722.52

(c) Retail Banking
41607.07
39147.76

2045.46
1007.31

(e) Un-allocable Liabilities
78.34
55.88

Total
175106.26
158603.48

Capital & Reserves
10064.09
8737.45

Total Liabilities
185170.35
167340.93
249
2.5 18
()
()

()
i) ], (11-12-2013 )
ii) .. , (30 2014 )
iii) .. ,
i)\
()

i)
ii) () \
iv) .. , (13.03.2015 )
iii) ()
:- ( )

2014-15 2013-14
1
..]

3
4

2

(11.12.2013 )

(30.04.2014 )

(13.03.2015 )
21,03,572
5,18,271
5,58,608
19,56,814
21,06,510
82,466
17,06,525
--
-18 \ 9 ] ]
] ] ,
() ] () () \ - 143.28 (138.72 )
() () .28.40 (.28.40 )
2.6 20 - ] (10/- )

2014-15
2013-14
..
10.82
7.67
...
10.82
7.67
...
( ) ( )
638.44
435.58
. ( )
58.99
56.79
10.82
7.67
250

2.5 Accounting standard 18 Related party disclosures
(b) Subsidiary
Names of the Related Parties and their relationship

with the Bank
Andhra Bank Financial Services Ltd.
Chaitanya Godavari Grameena Bank
(a) The Bank has identified the following persons to be

the Key Management Personnel as per the Accounting
Standard
(c ) Associate
(d) Joint Ventures
i) Shri C.VR. Rajendran, Chairman and Managing

Director (From 11.12.2013)
i)
India First Life Insurance Company Ltd.,
ii)
India International Bank (Malaysia) Bhd.
ii) Shri K.K. Misra, Executive Director (upto 30.04. 2014)
iii)
ASREC India (P) Ltd.,
iii) Shri S K Kalra, Executive Director
iv) Shri A.K. Rath, Executive Director (from 13.03.2015)
Transactions with Related parties:-

Sl. No Name
Relationship

1
Sri C VR Rajendran

2
Sri K.K.Misra

3
Sri S K Kalra

4
Shri A.K. Rath

Nature of transaction
Chairman &
Remuneration
Managing Director
(From 11.12.2013)
Executive Director
Remuneration
(upto 30.04.2014)
Executive Director
Remuneration
Executive Director
Remuneration
(with effect from
13.03.2015)
2014-15
(Amount in `)
2013-14
21,03,572
5,18,271
5,58,608
19,56,814
21,06,510
82,466
17,06,525
--
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.
e) Capital invested in Joint Ventures
a) India International Bank (Malaysia) Bhd `143.28 crore ( ` 138.72 crore)
b) ASREC India (P) Ltd. `28.40 crore (`28.40 crore)
2.6 Accounting Standard 20 Earning per share (Face Value `10/- each)
Particulars
2014-15 2013-14
Basic EPS `
10.82 7.67
Diluted EPS `
10.82 7.67
Calculation of Basic EPS

Net Profit (` in crore) (excluding extra ordinary items, net of taxes)
638.44
435.58
Weighted Average No. of Shares (in crore)
58.99
56.79
Basic Earnings per Share `
10.82 7.67
251
3
3.1
2.7 22 -
31.03.2015
(` )
\ 31, 2015 \ 31, 2014

(1) ,
0.34
-
50.98

(2) - , 1961
-
3.27
-
5.13

/
3)
-
-
- 43.05
\

- 394.28
- 329.70
(4) , 1961
36(1) (viii)
]
(5) \
- 14.45
- 57.76
2014-15 , \
]
\
2.9 28 - ]
28 8 10 \ - ]
( ]) ]\
\ -
]
2.10 29 - ,
\ 12 /\/
^, , ,
, ] ,
\ ( )
(` )

/

/

-27.94
1732.98
307.00
552.76
27.00
188.66
1477.17
197.00
231.15
67.00
-93.82
50.00
162.02
113.68
2660.00 2324.66
3.2 (- { )
2.8 24 - \
(i)
(ii) ]
(iii)
(iv)
(v)
(v) :
)
)

2014-15 2013-14
0.34 412.00 50.98 435.64
(` )
2014-15 2013-14
2.04
2.10
0.30
0.07
0.13
0.13
2.21
2.04
/
/

(` )

2014-15
2013-14

26.00
38.06
]
--
- (-
13.00
12.06
)*

13.00
26.00
*\ . . .. 79/21.04.048/2014-15
30 \, 2015 31, 2014
50 (32 )
] ]
13 ( 12.06 )

3.3 ]

) )
() ()
) 732 ) ]
1
) 86169 )
Nil

) 86263 )
**1

) *638 )
Nil

79534,
31, ]/ 3153, 85, 1570
( ), 458 ( ) 1338

\] , 31 03 2015 120
360 ] 0.17 ] 0.16
0.01
*
**
, , ,
252

2.7 Accounting Standard 22 Accounting for taxes on
income
The major components as on 31.03.2015 are as follows:(` in crore)
Timing Difference 31st March-2015 31st March-2014

DTA
DTL
DTA
DTL
(1) Provision created in books
0.34
- 50.98
but not claimed
as deduction
(2) Excess/Less Depreciation
-
3.27
-
5.13
claimed as per Income
Tax Act, 1961
(3) On account of unamortized
-
-
- 43.05
additional liability due
to re-opening of pension
option and revision in
ceiling of gratuity
(4) On account of Special Reserve
- 394.28
- 329.70
created under section 36 (1)
(viii) of Income Tax Act,1961
(5) On account of pension and
- 14.45
- 57.76
gratuity fund contributed
Total
0.34 412.00 50.98 435.64
2.8 Accounting standard 24 Discontinuing
operations:

During the financial year 2014-15, 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.
2.9 Accounting Standard 28 Impairment of Assets :

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.
2.10 Accounting Standard 29 Provisions, Contingent
liabilities and Contingent assets

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)
Particulars
Legal cases/contingencies
2014-15
2013-14
Opening balance
2.04
2.10
Provided during the year
0.30
0.07
Amounts used during the year
0.13
0.13
Closing balance
2.21
2.04
Outflow on
Settlement/
crystallization
Outflow on
Settlement/
crystallization
Timing of outflow/uncertainties

3 Additional disclosures
3.1 Provisions and contingencies
(` in crore)
Breakup of Provisions and
2014-15 2013-14
Contingencies shown under
the head Expenditure in
Profit and Loss Account
(i) Depreciation in value of
-27.94
188.66
Investments
(ii) Non Performing Assets
1732.98 1477.17
(iii) Standard Assets
307.00
197.00
(iv) Income Tax
552.76
231.15
(v) Deferred Tax
27.00
67.00
(vi) Other provisions and
contingencies:
a) Restructured advances
-93.82
50.00
b) Other provisions
162.02
113.68
TOTAL
2660.00 2324.66
3.2 FLOATING PROVISIONS (Countercyclical
provisioning buffer)
(` in crore)
Particulars
2014-15
2013-14
Opening balance
26.00
38.06
--
-Reduction during the year
13.00
12.06
(Purpose and amount of
drawdown made)*
Closing balance
13.00
26.00
*Pursuant to the notification no. DBR.No.BP
BC.79/21.04.048/2014-15 dated March 30, 2015, Bank
decided to utilize 50 per cent (32 per cent) of floating provision
held as on December 31, 2014 and accordingly utilized
`13crore (`12.06 crore)for making specific provisions on
non-performing assets.
There is no drawdown from the reserves during the year.
3.3 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
732
a) Unimplemented at the
1
b) Received during
86169
b) Passed by the Banking
the year
Ombudsman during the year
Nil
c) Redressed during
86263
c) Implemented
**1
the year
during the year
d) Pending at the end
*638
d) Unimplemented at the
Nil
of the year
end of the year

253
The total complaints received during the year include

79534 number of complaints for ATM, 31 for Credit Card,
3153 for RTGS/NEFT, 85 for Pension, 1570 for SMS
upset, 458 for Banking Ombudsman and 1338 General
complaints.
The number of good faith charge backs, i.e., complaints
received after 120 days, raised on other Banks stood at
360 as on 31-03-2015 amounting to ` 0.17 crore out of
which ` 0.16 crore is more than one year and ` 0.01 crore
is less than one year.
* All the pending complaints are since redressed.
** The complainant was not satisfied with Banking
,
,

3.4. ] \
31.03.2015 , 990 (1040) \
/\- ] , ] 2876.22
. (4140.78 ) .31.03.2015 \
1367.63 ( 1968.22 )
\
() \ .13.08.2010
{ ^

25%
40% { 35% {
, ,
82.50 (]
330 ] 25% ) ]

() \ ]
] .
05.08.2010 \ \ ]
\ /\ ]
.31.03.2015
() \ ]
82.50 ] 10 82,50,000
]

330 ]
] \ 82.50

3.5 ]

1
2 (++)

< 1
1-3

@ ]
31.03.2015 *

2004.34
4829.16
( )
5
, /,
@ ] (4) (3)
\
(%)

379.08
18.91%
2752.79
57.00%
1377.23
3308.95

>3
142.98
3

43.04 + 2148.87
(2105.83)
4
8982.37
564.37 40.98%
2045.44 61.82%
142.98 100%
2148.87
100%
5280.74 58.79%
(
] II
] ) -
13.00 ]/]

] -
-
-
\

-
-
-

8982.37
5293.74 58.93%
] #
58.93%
* - ] ] .. - (
)
@ / - ] \
5

6

7

8
9
# + + \ ]/] +
/ +
254

Ombudsmans award and preferred an appeal with

the Deputy Governor, Reserve Bank of India, Mumbai,
against the award issued by the Banking Ombudsman,
Hyderabad. The appellate authority, Deputy Governor
of RBI upheld the decision of the Banking Ombudsman,
Hyderabad, but the complainant has not given his consent.
Hence, the complaint is treated as closed.
3.4 Disclosure of Letters of Comfort (LoC) issued by bank:
During the year ended 31.03.2015, 990 (1040) Letters of
Comfort/Letter of Undertaking have been issued by the bank
amounting to ` 2876.22 crore (`4140.78 crore). The Letters
of Comfort outstanding as on 31.03.2015 are amounting to
`1367.63 crore (` 1968.22 crore).
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%, other participating
banks share , 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 82.50 million (being 25% of
total paid up capital of Malaysian Ringgit 330 Million).
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 31.03.2015, Andhra
Banks contribution to equity capital of India International Bank
(Malaysia) BHD is Malaysian Ringgit 82.50 Million representing
82,50,000 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 82.50
Million under the Letter of Comfort issued, towards its share in
the paid up capital of Malaysian Ringgit 330.00 Million.
3.5 Provisioning Coverage Ratio
(` in crore)
1
2
3
4
5
@
Ratio of
Sl.No Particulars
Gross NPA plus technical / Specific Provisions held including

prudential write-off as on
provisions for diminution in fair
(4) to (3)

31.03.2015*
value of the restructured accounts

classified as NPAs plus technical /

prudential write-off @
1
Sub-Standard Advances
2004.34
379.08
18.91%
2
Doubtful Advances (a+b+c)
4829.16
2752.79
57.00%
a
< 1 year
1377.23
564.37
40.98%
b
1-3 Years
3308.95
2045.44
61.82%
c
>3 years
142.98
142.98
100%
3
Advances classified as

Loss Assets 43.04 +
2148.87
2148.87
100%

Technically Writtenoff 2105.83
4 Total
8982.37
5280.74 58.79%
5
Floating Provisions for

Advances (only to the extent

they are not used as Tier II
Capital)
-
13.00
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
8982.37
5293.74
58.93%
9
Provisioning Coverage Ratio#
58.93%
* Technical or prudential write off is the amount of non performing loans which are written off at branch level 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 +
amount technically written off / Gross NPA + amount technically written off.
255
3.6 -
- 19.61 (12.83 )
- ] 9.16 (5.61
) ] 10.45 ( 7.22
)
3.7 ], , ]
3.7.1 ] :
3.9

5857.60
] ( )
3424.25
-] ()
9281.85
:-
(i)
261.94
(ii) (
)
1019.23
(iii)
1002.61
(iv) -] ()
121.53
(` )
20 ] ]
16196

(16669)
] 20 ]
10.45
]
(11.75)
*

3.7.2

(` )
20
17361

20

(` )
31-\-2015 31-\-2014
(-)
102.82
323.54
233.32
29.56
2405.31
689.24
6876.54 5857.60
1 , 2012
-
)
(20137)
11.88
(13.17)
3714.49
2832.35
6546.84
(
(` in crore)

2014-15 2013-14
/ 1186.86
1062.68
* ]
]
] / 1002.61
233.32

-]
()

2189.47
1296.00
3.7.3 ]

(` )
/ 83.64
109.14
20 / ]
17906
()*

(20732)
(-)
2105.83 1186.86
/ ]
9.28%
* / ^

20 / ]
(10.47%)
** ] ]
]
3.7.4 ]

\\ \ ]

3.8
(` )

1
2
3

-] ()

2

3

4
(` )
1164.93
(1004.02)

@

@

-] ()
(+)

@ Exceeding 10% of the respective sector.
19892.23
10714.27
6238.06
8122.40
44966.96
1056.70
511.64
253.55
211.29
2033.18
5.31%
4.78%
4.06%
2.60%
4.52%
20267.12
9154.38
4877.13
6994.66
41293.29
564.04
361.19
214.98
211.96
1352.17
2.78%
3.95%
4.41%
3.03%
3.27%
0.00
57319.70
12515.91
15565.76
9592.58
11723.72
84609.18
129576.14
0.00
4274.67
199.43
254.37
0.00
314.32
4843.36
6876.54
-
7.46%
1.59%
1.63%
0.00
2.68%
5.72%
5.31%
0.00
48233.52
11497.71
11601.45
6909.22
9520.78
69355.75
110649.04
0.00
4233.62
192.85
180.57
0.00
91.24
4505.43
5857.60
8.78%
1.68%
1.56%
0.00
0.96%
6.50%
5.29%
256

3.6 Bancassurance business
The Bank has received total `19.61 crore (`12.83 crore) as fee
from Bancassurance. It includes fees from Bancassurance Life
` 9.16 crore (`5.61 crore) and Non-Life `10.45 crore (`7.22
crore).
3.7 Concentration of Deposits, Advances, Exposures and
NPAs
3.7.1 Concentration of Deposits: *
(`tin crore)
Total Deposits of twenty largest depositors
16196

(16669)
Percentage of Deposits of twenty largest
10.45
depositors to Total Deposits of the bank
(11.75)
3.9 Movement of NPAs

(`tin crore)
Particulars
31-Mar-2015 31-Mar-2014
Gross NPAs at the beginning of the year
5857.60
3714.49
Additions (Fresh NPAs) during the year
3424.25
2832.35
Sub-total (A)
9281.85
6546.84
Less:-
(i) Up gradations
261.94
102.82
(ii) Recoveries (excluding recoveries made
from upgraded accounts)
1019.23
323.54
(iii) Technical/Prudential Write offs
1002.61
233.32
(iv) Write offs other than those (iii) above
121.53
29.56
Sub-total (B)
2405.31
689.24
Gross NPAs at the end of the year (A-B)
6876.54
5857.60
*Compiled by the management based on individual customer IDs and

relied upon by the auditors
3.7.2 Concentration of Advances*

(`tin crore)
Total Advances to twenty largest borrowers
17361

(20137)
Percentage of Advances to twenty largest
11.88
borrowers to Total Advances of the bank
(13.17)
* Advances have been computed as per the definition of credit
exposure including derivatives furnished in RBI Master circular
on exposure norms.
3.7.3 Concentration of Exposures**
(` in crore)
Total exposure to twenty largest borrowers/
17906
customers (20732)
Percentage of exposures to twenty largest
9.28%
borrowers/customers to total exposure of
(10.47%)
the bank on borrowers/customers
** Exposure has been computed based on credit and investment
exposure as prescribed in the RBI Master circular on exposure
norms.
3.7.4 Concentration of NPAs :
(` in crore)
Total Exposure to top four NPA accounts
1164.93

(1004.02)
Stock of technical write-offs and the recoveries made

thereon:

(`tin crore)
Particulars
2014-15
2013-14
Opening balance of Technical/Prudential
Written off Accounts
1186.86
1062.68
Add: Technical/Prudential write-offs
during the year
1002.61
233.32
Sub-Total (A)
2189.47
1296.00
Less: Recoveries made from previously
technical/prudential write-off
Accounts during the year (B)*
83.64
109.14
Closing balance (A-B)
2105.83
1186.86
*including notional write off involved under compromise settlements in
Technically Written Off accounts.
3.8 Sector-wise Advances :

Sl. No.
Sector
(` in crore)
Current year

Outstanding Gross NPAs

Total Advances

A Priority Sector
1 Agriculture and allied activities
19892.23
1056.70
2 Advances to industries sector eligible as priority sector lending
10714.27
511.64
3 Services
6238.06
253.55
4 Personal loans
8122.40
211.29

Sub-total (A)

44966.96
2033.18
B Non Priority Sector
1 Agriculture and allied activities
0.00
0.00
2 Industry
57319.70
4274.67

Power @
12515.91
199.43
3 Services
15565.76
254.37

NBFC @
9592.58
0.00
4 Personal loans
11723.72
314.32

Sub-total (B)

84609.18
4843.36

Total (A+B)

129576.14
6876.54
@ Exceeding 10% of the respective sector.
257
Previous year
Percentage of
Gross NPAs to
Total Advances
in that sector

Outstanding
Total
Advances

Gross
NPAs

Percentage
of Gross
NPAs to Total
Advances in that
sector
5.31%
4.78%
4.06%
2.60%
4.52%
20267.12
9154.38
4877.13
6994.66
41293.29
564.04
361.19
214.98
211.96
1352.17
2.78%
3.95%
4.41%
3.03%
3.27%
-
7.46%
1.59%
1.63%
0.00
2.68%
5.72%
5.31%
0.00
48233.52
11497.71
11601.45
6909.22
9520.78
69355.75
110649.04
0.00
4233.62
192.85
180.57
0.00
91.24
4505.43
5857.60
8.78%
1.68%
1.56%
0.00
0.96%
6.50%
5.29%
3.10 { , ]
3.17 ] ()
( )

3.11 ] (]
] )
]

( )
31-\-2015
31-\-2014
3.13
, 2012-13
, ] / , 737.21
( 522.13 )
/
] /
(\ 11 III - )
3.14 , 1961 36(1)(viii)

`190 (`195 ) \-2
IV B
3.15 \ \ \
( )
3.16 - ]
3.16.1-
149.71
0.78

148.93
3.18 {
{ -

] , , ]
] /
, ] / , ] ,
\ () / (),
, / / ]
\ ]
-
\ + ]
31 \, 2015 {
/ ] \

( )
3.16.2 ] - 600 ( 400 )

3.16.3 \\-20 ]
)
3.12 31 \, 2015 ]
] \

{
\

() \
()

\ 12 - ]
] ]
12.55
600 ( 400
3.16.4 / ] ]
0.41% (0.26%)
3.16.5 ] , ,
-

258

{ ]
15.87

3.10 Overseas Assets, NPAs and Revenue

(` in crore)
Particulars Amount
Total Assets
NIL
Total NPAs
NIL
Total Revenue
NIL
3.11 Off-balance Sheet SPVs sponsored (which are required
to be consolidated as per accounting norms):
Name of the SPV sponsored

Domestic Overseas

Nil Nil
3.12 Reconciliation of Inter Bank transactions have been done
up to 31st March 2015.
3.13Provision 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 `737.21 crore (` 522.13 crore ) upto assessment
year 2012-13 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).
3.14 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 ` 190 crore (previous year
`195 crore) to the corresponding Special Reserve account
maintained under the said section and the same is shown under
Item IV B of Schedule -2 Reserves and Surplus.
3.15 Credit Default Swaps:The Bank has not entered into Credit
Default Swaps during the current Financial Year (previous
year NIL).
3.16 Intra-Group Exposures:
3.16.1 Intra-group entities
Name of the entity
Nature of Relationship
Subsidiary
Chaitanya Godavari Grameena Bank
Associate
India First Life Insurance Company Ltd.
Joint Venture
India International Bank (Malaysia) Bhd
Joint Venture
ASREC India (P) Ltd.
Joint Venture
3.16.2
3.16.3
3.16.4
3.16.5
3.17 Transfers to Depositor Education and Awareness Fund

(DEAF) : Details of unclaimed liabilities where the amount
due has been transferred to DEAF reflected as Contingent
Liability - Others items for which the bank is contingently
liable under Schedule 12 of the annual financial
statements

(`tin crore)
31-March-2015 31-March-2014
Particulars
Opening balance of amounts
transferred to DEAF
Nil
N.A.
Add : Amounts transferred to

DEAF during the year
149.71
N.A.
0.78
N.A.
148.93
N.A.
Less : Amounts reimbursed by

DEAF towards claims
Closing balance of amounts
transferred to DEAF
3.18 Unhedged Foreign Currency Exposure :

Bank has in place Board approved policy on Hedging of Forex
Currency Exposures of the Borrowers prepared in line with RBI
guidelines. The policy covers monitoring, reporting, reviewing and
pricing mechanism of Unhedged Forex Exposures of Borrowers.
For computing aggregate forex exposures of the borrowers
Foreign currency loans/borrowings, Working capital demand loan/
term loan in foreign currency, External Commercial Borrowings,
Foreign Letter of Undertaking (LoU)/Letter of Comfort (LoC)
including buyers credit, import letters of credit, Foreign Letter of
Guarantees/Foreign Stand by Letter of Credit/Deferred Payment
Guarantees issued in Foreign currency are considered.
The incremental provisions/Capital requirement is arrived by
considering likely loss & EBID of the borrowers as per RBI
guidelines.
In respect of the Unhedged Foreign Currency Exposures,
Incremental provisions and capital requirements that are provided
by the bank as on 31 Mar 2015 are given below.

(` in crore)
Incremental Provisioning
Incremental Capital
(over and above extant standard requirement for
asset provisioning)
Unhedged foreign

currency exposures of

borrowers
12.55
15.87
Total amount of intra-group exposures - ` 600 crore

(` 400 crore)
Total amount of top-20 intra-group exposures ` 600 crore
(` 400 crore)
Percentage of intra-group exposures to total exposure of
the bank on borrowers / customers is 0.41% (0.26%).
Details of breach of limits on intra-group exposures and
regulatory action thereon, if any. NIL
259
3.19 ]
3.19.1
31-\-2015
*
#
( )
( )
(` )
31-\-2014
*
( )
#
( )
\\
\\ (\)
14594.45

2 ] ],

]
83082.55
8035.83

(i) ]
6783.26
339.16
(ii) ]
76299.29
7696.67
3 , ]
18323.75
9969.17
(i) \ ] ( )
0.00
0.00

(ii) \ ] ( )
18323.75
9969.17
(iii)
0.00
0.00
4
0.00

5 ]
23167.55
5531.42

(i) ]

3610.93
3610.93

(ii)
0.00
0.00

(iii)
19556.62
1920.49

6
2597.50
2597.50

7
24.69
1.23

8
26135.15

9 ( )
350.00
350.00

10 ]
3742.74
1871.37

11
4312.36
4312.36

12
8405.10
6533.73

$ ]
]

21 \
14594.45

22
19601.42

23 ] (%)
74.46%

* 30 ( ) ]

# (\ ) ( ) ]
$ (i) (ii) ( \ 2 2 ])
] ]

260

3.19 Liquidity Coverage Ratio :
3.19.1 Disclosure format :

Sl. Particulars
No.
(` in crore)
31-March-2015
31-March-2014
Total *Unweighted Total #Weighted Total *Unweighted Total #Weighted

Value (average)
Value (average) Value (average) Value (average)
High Quality Liquid Assets

1 Total High Quality Liquid Assets (HQLA)

2 Retail deposits and deposits from

small business customers, of which:
(i) Stable deposits
83082.55
8035.83
Not applicable
Not applicable
6783.26
339.16
(ii) Less stable deposits
76299.29
7696.67
3 Unsecured wholesale funding, of which:
18323.75
9969.17
(i) Operational deposits (all counterparties)

(ii) Non-operational deposits (all counterparties)
(iii) Unsecured debt
0.00
0.00
18323.75
9969.17
0.00
0.00
4 Secured wholesale funding

5 Additional requirements, of which

14594.45
Cash Outflows
(i) Outflows related to derivative exposures and

other collateral requirements
(ii) Outflows related to loss of funding on

debt products
Not applicable
0.00
Not applicable
23167.55
5531.42
Not applicable
Not applicable
3610.93
3610.93
Not applicable
Not applicable
0.00
0.00
Not applicable
Not applicable
19556.62
1920.49
Not applicable
Not applicable
6 Other contractual funding obligations
2597.50
2597.50
Not applicable
Not applicable
7 Other contingent funding obligations
24.69
1.23
Not applicable
Not applicable
(iii) Credit and liquidity facilities
8 Total Cash Outflows

26135.15
Not applicable
Cash Inflows
9 Secured lending (e.g. reverse repos)
350.00
350.00
Not applicable
Not applicable
10 Inflows from fully performing exposures
3742.74
1871.37
Not applicable
Not applicable
11 Other cash inflows
4312.36
4312.36
Not applicable
Not applicable
12 Total Cash Inflows
8405.10
6533.73
Not applicable
Not applicable

$ Total Adjusted

Value
Total Adjusted
Value
21 TOTAL HQLA
14594.45
Not applicable
22 Total Net Cash Outflows
19601.42
Not applicable
23 Liquidity Coverage Ratio (%)
74.46%
Not applicable
* Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows) except where
otherwise mentioned in the circular and LCR template.
# Weighted values are calculated after the application of respective haircuts (for HQLA) or inflow and outflow rates (for inflows and
outflows).
$ Adjusted values are calculated after the application of both (i) haircuts and inflow and outflow rates and (ii) any applicable caps (i.e.
cap on Level 2B and Level 2 assets for HQLA and cap on inflows).
261
3.19.2
. ] () 30
\\
(\) ]
\\
;

( @2 ) (
( @5 )

] , , ] ,

( 2 2
- /]
)
262
01.01.2015 60
31.01.2015, 28.02.2015 31.03.2015 ]
() 67.94%, 78.47% 77.35%
31 \ 2015 (], \ 2015
) 74.46%
3.20 74
] 115.35 \ 2015

712.88 ( 1587.90
\ 875.02 )
] \
] ,

II ] ]
320.79
3.21 , ] , \
/ /


3.19.2 Qualitative disclosure around LCR :

a. The Liquidity Coverage Ratio (LCR) is calculated as a ratio
of High Quality Liquid Assets (HQLA) to Net Cash outflows
under stress conditions over the next 30 calendar days.

b. High Quality Liquidity Assets (HQLA) comprise of :

Cash on hand;
Excess CRR balance;
Government Securities in excess of minimum SLR
requirement;

Government securities within the mandatory SLR
requirement to the extent allowed by RBI under MSF (@2%
of NDTL) & FALLCR (@5% of NDTL);

Marketable securities representing claims on or guaranteed
by Public Sector Entities, Corporate Bonds, Commercial
Papers, Equity shares (Assets classified as Level 2A and
2B Assets are subject to hair-cuts / adjustments as per RBI
guidelines)

c. Liquidity Coverage Ratio (Ratio) as on 31.01.2015,
28.02.2015 and 31.03.2015 stood at 67.94%, 78.47%
and 77.35% respectively against regulatory requirement
of minimum of 60% w.e.f. 01.01.2015. The Average LCR

for the quarter ending 31st March, 2015 (for the months of
January, February and March, 2015) is 74.46%.
3.20 During the year, Bank has revalued 74 premises owned
by it having original cost of ` 115.35 crore. The revaluation
has been done on the basis of the value determined by
the approved valuer in the months of Feb & March 2015
and resultant net appreciation of ` 712.88 crore (with
increase in original cost of the assets by ` 1587.90 crore
and accumulated depreciation by ` 875.02 crore) has been
credited to Revaluation Reserve. As assets have been
revalued at year end only, accordingly no depreciation has
been provided on the revalued amount.
Revaluation reserve included in Tier II capital of the Bank
has increased the regulatory capital to the extent of
` 320.79 crore
3.21 Previous year figures have regrouped / reclassified /
rearranged wherever necessary to conform to current years
figures. Figures in the brackets indicate figures of previous
year.
263
31 \, 2015
(` 000 )
31.03.2015 31.03.2014

9440,59,85
6405,86,71

7663,76,85
9440,59,85
/ (1776,83,00) 3034,73,14
\

1218,19,60
733,72,04
]
119,97,12
89,97,14
] - ]
919,35,08
710,68,96

27,79
60,39
\ \
2257,24,01
1533,77,75
\ ]
] / ()
13167,12,08
18049,54,29
() /
(1142,80,64)
(7724,22,45)
() /
(18310,52,65)
(9270,89,92)
() /
582,29,15
(470,64,81)
/ ()
1041,86,77
627,33,28
\ ]
(2404,81,28)
2744,88,14

(458,32,44)
(642,18,37)
\ ()
(2863,13,72) 2102,69,77

\ () /
(236,46,48)
(219,81,15)
()
(236,46,48)
(219,81,15)

]
120,00,00
200,00,00
/ ()
]
( )
()
/ ()+()+ ( )
. . ]

2122,12,28
(919,35,08)
--
1322,77,20
(1776,83,00)
. .
2065,75,55
(710,68,96)
(403,22,07)
1151,84,52
3034,73,14

- 312063

- 000425

- 001541

- 006031
( ] \)
( )
( ].)
( . ] )
(.. 070633)
(.. 080245)
(.. 026769)
(.. 023417)
:
: 27.04.2015
264
Cash Flow Statement for the Year ended 31st March, 2015
(` in 000)

Particulars

For the year ended For the year ended

31.03.2015
31.03.2014
Opening balance of Cash and Cash equivalents

Closing balance of Cash and Cash equivalents
9440,59,85
7663,76,85
6405,86,71
9440,59,85
(1776,83,00)
3034,73,14
Net Increase(+) / Decrease (-) of Cash and Cash

equivalents during the period
Cash Flow from Operating Activities:

1218,19,60
733,72,04
Add: Depreciation on Assets
Net Profit before tax
119,97,12
89,97,14
Add: Interest paid on Subordinated Debt & Other Borrowings
919,35,08
710,68,96
27,79
60,39
2257,24,01
1533,77,75
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
13167,12,08
18049,54,29
(Increase) / Decrease in Investments
(1142,80,64)
(7724,22,45)
(18310,52,65)
(9270,89,92)
582,29,15
(470,64,81)
(Increase) / Decrease in Advances

(Increase) / Decrease in Other Assets
Increase / (Decrease) in Other Liabilities and Provisions
1041,86,77
627,33,28
(2404,81,28)
2744,88,14
(458,32,44)
(642,18,37)
(Purchase) / Sale of Fixed assets
(236,46,48)
(219,81,15)
Cash Flow from Investing Activities (B)
(236,46,48)
(219,81,15)
Cash Generated from Operations

Taxes Paid
Cash Flow from Operating Activities (A) (2863,13,72) 2102,69,77

Cash Flow from Investing Activities:
Cash Flow from Financing Activities:

120,00,00
200,00,00
Increase / (Decrease) in Borrowings
Equity Capital including Premium
2122,12,28
2065,75,55
Interest paid on Subordinated Debt & Other Borrowings
(919,35,08)
(710,68,96)
--
(403,22,07)
Dividend paid (including tax on dividend)

Cash Flow from Financing Activities (C)
Net Increase (+) / Decrease (-) in Cash flow during the period (A)+(B)+(C )
C.VR.RAJENDRAN
S.K.KALRA
Executive Director
S.V.VENKATASUBRAMANIAN
General Manager
1322,77,20
1151,84,52
(1776,83,00)
3034,73,14
AJIT KUMAR RATH

Executive Director
Y. AMARNATH

FRN:312063E

FRN:000425N
FOR V.KRISHNAN & CO.

FRN:001541S

FRN:006031S

PARTNER (M.NO. 070633)

(CA G.PARI)

Place: Hyderabad
Date: 27-04-2015
265
\
\ \

-

5.
31 \ 2015
31 \ 2015

\
20 1071

] \ {
] 1416 ,]

6.68 , ] 20.64
], 5.13 ] 17.08 ]
-
2.
1949
] ,

\,
3.

]

\ ]

4.

]\
\

] ]

] ,
\

6.
, ] ,
]
(i) \ \

31 \ 2015
]
(ii)

,
(iii) \

7.
1949
\
8.
1 5 (
) , 1980
\
) \ ]
]
]
)
)

9.

- 312063

- 000425
.

- 001541

- 006031
( ] \)
(.. 070633)
( )
(.. 080245)
( ] )
(..026769)
( . ] )
(. . 023417)
:
: 27.04.2015
266

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, 2015 which comprise
the Balance Sheet as at 31st March, 2015 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 1071 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 1416 branches which have not been
subjected to audit. These unaudited branches account
for 6.68 per cent of advances, 20.64 per cent of deposits,
5.13 per cent of interest income and 17.08 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

FRN- 312063E
(CA Anjan Bhattacharyya)
Partner (M. No. 070633)
as evaluating the overall presentation of the financial

statements.
5. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
6. 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, 2015 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
7. 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.
8. Subject to the limitations of the audit indicated in
paragraph 1 to 5 above and as required by the Banking
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.
9. In our opinion, the Balance Sheet, Profit and Loss
Account and Cash Flow Statement comply with the
applicable accounting standards.
For PREM GUPTA & CO.

FRN- 000425N
For V.KRISHNAN & CO.

FRN- 001541S
For BASHA & NARASIMHAN

FRN- 006031S
(CA Prem Behari Gupta)

(CA G. Pari)
(CA Sk. Phyaji Basha Saheb)

Place: Hyderabad
Date: 27.04.2015
267
- ^

( )

/ 1969 *
1980 **
\-11
\-12
\-13
\-14
\-15
155
627
1632
1712
1867
2114
2507
155
754
2676
2821
3125
4009
4782
2163
7585
14098
15099
16523
18725
18525
0.06
1267
1345
1289
436
638
52
666
92156
105851
123796
141845
155012
35
356
71435
83642
98373
107644
125955
16
170
24210
29656
37795
45639
46719
0.5
560
560
560
590
603
0.4
4.9
5933
6920
7882
8148
9461
58
708
108901
124964
146299
167341
185170
128
23082
27027
35132
41293
45508

$ -
*
**
268
OUR PROGRESS AT A GLANCE

(` Crore)

Year / Parameters
1969 *
1980 **
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
No of Branches
155
627
1632
1712
1867
2114
2507
No of Business
155
754
2676
2821
3125
4009
4782
Staff Strength
2163
7585
14098
15099
16523
18725
18525
Net Profit
0.06
1267
1345
1289
436
638
Total Deposits
52
666
92156
105851
123796
141845
155012
Net Advances #
35
356
71435
83642
98373
107644
125955
Investments $
16
170
24210
29656
37795
45639
46719
Delivery Channels
Capital 0.5
560 560 560 590 603
Reserves & Surplus
0.4
4.9
5933
6920
7882
8148
9461
Working Funds
58
708
108901
124964
146299
167341
185170
128
23082
27027
35132
41293
45508
Priority Sector Advances
# Net of Provisions
$ Pre Depreciation
* Year of Nationalisation of Banks
** Year of Nationalisation of Andhra Bank
269
\ 2015
(%)
1.
() - III
2.
3.
2014
(%)
10.63
10.78
3.08
3.20
39.78
38.94
91.41
88.04
2.93
3.11
1.
2.
3.
29.73
24.25
4.
94.69
94.70
5.
1.99
2.00
1.
83.61
78.02
2.
10.65
14.38
3.
( )
1367.40
1223.35
4.
\ ( )
3.45
2.33
1.
-]
8.39
8.53
2.
0.38
0.29
3.
] ]
3.00
2.76
4.
45.37
45.56
5.
/( ] + )
28.12
27.27
6.
11.38
11.22
7.
8.19
8.20
8.
] \
1.94
1.82
1.
22.95
23.86
2.
0.36
0.31
3.
25.11
27.10
270
KEY PERFORMANCE RATIOS
March 2015
Capital Adequacy
1. (CRAR) Basel III
2. Coverage Ratio
3. Net NPAs to Net Worth
March 2014
(%)
(%)
10.63
10.78
3.08
3.20
39.78
38.94
91.41
88.04
2.93
3.11
Asset Quality

1. Govt. Securities to Total Investments
2. Net NPAs to Net Advances
3. Off Balance Sheet Items to Total Assets
29.73
24.25
4. Standard Advances to Total Advances
94.69
94.70
5. Net NPAs to Total Assets
1.99
2.00
Management Quality
1. Gross Bank Credit to Aggregate Deposit
83.61
78.02
2. Growth in Total Assets
10.65
14.38
3. Average Productivity (Rs Lakhs)
1367.40
1223.35
4. Profit per Employee (Rs Lakhs)
3.45
2.33
Earnings

1. Non Interest Income to Total Income
8.39
8.53
2. Return on Assets
0.38
0.29
3. Net Interest Margin
3.00
2.76
4. Ratio of Cost to Income
45.37
45.56
5. Staff Cost to Net Interest Income + Other Income
28.12
27.27
6. Average Yield on Advances
11.38
11.22
7. Average Yield on Coupon Based Investments
8.19
8.20
8. Operating Profit to Average Working Funds
1.94
1.82
22.95
23.86
0.36
0.31
25.11
27.10
Liquidity

1. Govt. Securities to Total Assets
2. Cash to Total Assets
3. Total Investments to Total Assets
271
31.03.2015 -
(- 1 $ = 62.908 { $
)
( )
( $ )

]
602.85
96.32
]

9461.24
1511.60
]
155012.24
24765.98

15307.22
2445.60

4786.80
764.78

185170.35 29584.28

7517.40
1201.04
-\
146.36
23.38

46499.43
7429.12

125954.73
20123.52
\
1263.57
201.88

3788.85
605.34

185170.35 29584.28

55055.95
8796.17

5195.03
830.00
31.03.2015

16368.60
2615.18
]

1499.84
239.63

17868.45 2854.80

]
11830.57
1890.15
\
2739.44
437.67

2080.24
332.36

16650.25 2660.18
]
159.61
25.50

]
76.55
12.23
]
28.77
4.60

190.00
30.36

120.57
19.26

24.11
3.85
- ]
94.98 15.17
272
ABRIDGED FINANCIAL STATEMENT OF ANDHRA BANK IN FOREIGN CURRENCY

BALANCE SHEET AS ON 31.03.2015
(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 62.908)
(Indian ` in Crore)
(US$ in million)
CAPITAL AND LIABILITIES

Capital
602.85 96.32
Reserves and Surplus
9461.24
Deposits
1511.60
155012.24 24765.98
Borrowings
15307.22 2445.60
4786.80
Total
764.78
185170.35 29584.28
ASSETS
Balances with banks and Money at Call and Short Notice
Investments
7517.40
1201.04
146.36
23.38
46499.43 7429.12
Advances
125954.73 20123.52
Fixed Assets
1263.57
201.88
Other Assets
3788.85
605.34
Total
185170.35 29584.28
Bills for collection
55055.95
8796.17
5195.03
830.00
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2015
INCOME
Interest Earned
Other Income
Total
16368.60
2615.18
1499.84
239.63
17868.45 2854.80
EXPENDITURE
Interest Expended
Operating Expenses
Provisions & Contingencies
Total
11830.57
1890.15
2739.44
437.67
2080.24
332.36
16650.25 2660.18
APPROPRIATIONS
Transfer to Capital Reserve
Transfer to Revenue & Other Reserves
159.61
25.50
76.55
12.23
28.77
4.60
190.00
30.36
Interim Dividend Paid
120.57
19.26
Tax on Dividend
24.11
3.85
Balance carried over to Balance Sheet
94.98
15.17
273
- ] CLASSIFICATION OF BRANCHES - POPULATION GROUP WISE

/]/
Region/ State/ U.T.
\, 2014 2014-15
\, 2015
-

Branches as at the Branches opened Rural Semi-Urban Urban
Metro Branches as at the
end of March 2014 during 2014-15
Northern Region
Haryana
\ Himachal Pradesh
181
64
49
4
end of March 2015
33
59
80
73
245
18
21
37
67
] Punjab
48
12
16
24
13
60
] Rajasthan
27
21
23
48
\[ ( ) Chandigargh (UT)
New Delhi
47
] Jammu & Kashmir
North Eastern Region
10
56
56
4
10
Assam
Meghalaya
Tripura
Eastern Region
210
39
72
76
81
20
18
1
249
Bihar
18
27
^ Jharkhand
14
11
19
53
34
153
Odisha
Sikkim
138
15
66
\ West Bengal
39
10
21
19
49
Central Region
135
18
11
33
69
40
153
[ Chattisgarh
16
12
20
Madhya Pradesh
27
11
12
29
10
13
41
28
92
12
Uttar Pradesh
82
Uttarakhand
10
\ Western Region
Goa
] Gujarat
Maharashtra
( )
10
103 (1)
49
21
72 (1)
151 (1)
52
25
22
17
23
47
73 (1)
27
11
35
49 (1)
99 (1)
0 1
Dadra Nagar Haveli (UT)

Southern Region
Andhra Pradesh
Telangana
Karnataka
Kerala
Tamilnadu
\ ( ) Puducherry (UT)
Total
1475 (9)
225
599
500 (1) 401 (6)
199
1699 (7)
779 (8)
95
366
269 232 (6)
876 (6)
475 (1)
71
205
154 (1)
87
98
544 (1)
87
10
13
22
55
97
25
15
17
32
106
41
21
46
42
37
146
2114 (10)
395
722
690(1)
691(6)
404(1)
2507(8)
: ** - -
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 2014-15.
274

/ Andhra Bank Financial Services Ltd.

FINANCIAL STATEMENTS OF SUBSIDIARY

275

31.03.2015

31.03.2015

31.03.2014

`
`
`
`
i
1
() ]
3
5,00,00,000 5,00,00,000
-9,15,99,484
-10,42,99,524
()
4
()
0 -4,15,99,484 0
-5,42,99,524
2
0
0
3 \
()
0
0
() ()
0
0
()
0
0
36,07,36,930
36,07,36,930
36,07,36,930
36,07,36,930
()
5
4 \
()
0
0
9,25,781
9,29,875
()
6
() \
0
0
9,25,781
0
9,29,875
()
0

32,00,63,227 30,73,67,281
II
1 \
() \
7
(i)
32,23,853
32,23,853

32,01,709
31,88,062

22,144 35,791

(ii)
0
0
(iii) \ ]
0
0
(iv)
0
0
() \
0
0
() ()
0
0
10,39,22,989
10,43,30,768
()
11
10,43,30,768
() -\
0 10,39,22,989 0
2 \
() \
0
0
3,83,179
2,68,356
()
8
0
61,766
()
9

()
10
21,57,34,915
20,26,70,600
()
0
0
0
20,30,00,722
(\) \
0 21,61,18,094

32,00,63,227 30,73,67,281

2
- 1-21

. .

: 06906S
( )

.026421

.

\
: 20.05.2015
276


Balance Sheet as on 31.03.2015

Particulars
Note No As on 31st March, 2015
As on 31st March, 2014

`
`
`
`
I EQUITY AND LIABILITIES :
1 Shareholders Funds

(a) Share Capital 3
5,00,00,000 5,00,00,000

(b) Reserves and Surplus 4
-9,15,99,484 -10,42,99,524

(c) Money Received against

Share Warrants
0 -4,15,99,484
0
-5,42,99,524
2 Share Application Money

Pending allotment
0
0
3 Non Current Liabilities

(a) Long Term Borrowings 0
0

(b) Deferred Tax Liabilities (Net) 0
0

(c) Other Long Term Liabilities 0
0

(d ) Long Term Provisions 5

36,07,36,930 36,07,36,930 36,07,36,930
36,07,36,930
4 Current Liabilities

(a) Short Term Borrowings
0
0

(b) Trade Payables
6
9,25,781
9,29,875

(c) Other Current Liabilities
0
0

(d) Short Term Provisions

0
9,25,781
0
9,29,875
TOTAL 32,00,63,227
30,73,67,281
II ASSETS
1 Non-current assets

(a) Fixed assets
7

(i) Tangible assets

Gross Block
32,23,853
32,23,853

Less : Depreciation
32,01,709
31,88,062

Net Block
22,144
35,791

(ii) Intangible assets
0
0

(iii) Capital Work-in-progress
0
0

(iv) Intangible assets under
development
0
0

(b) Non -current investments
0
0

(c ) Deferred Tax Asset (Net)
0
0

(d) Long term loans and advances
11
10,39,22,989 10,43,30,768

(e) Other non current assets
0 10,39,22,989
0
10,43,30,768
2 Current assets

(a) Current investments
0
0

(b) Inventories
8
3,83,179
2,68,356

(c) Trade receivables
9
0
61,766

(d) Cash and Cash Equivalents
10
21,57,34,915 20,26,70,600

(e) Short term loans and advances
0
0

(f) Other current assets
0 21,61,18,094
0
20,30,00,722

TOTAL 32,00,63,227
30,73,67,281
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
S.K.Kalra
S.V.Venkatasubramanian
V.M.Parthasarathi
FRN : 06906S
Chairman
Director
Director
( A NALINI MOHANA RAO )
PARTNER
Membership No:026421
V.B.Bhagavathi D.Durga Prasad
L.Prasanna
M.Raghuram

Director
Director
Managing Director
Company Secretary
PLACE : Hyderabad
DATE : 20.05.2015
277
31.03.2015

31.03.2015 31.03.2014

` ` ` `
I \ ]
1,89,47,142
1,78,74,543
]
14
II ( / )
14
1,26,823
-3,529

0
14,35,014
III
] (I+II)
1,90,73,965 1,93,06,028
IIV

0
0

0
0
\
\
0
0
7,79,157
10,69,567
\
15

16
54,698
44,890

7
13,647
6,205
- ,

17
2,16,129
91,651

0
14,35,014

10,63,631
26,47,327
V

1,80,10,334
1,66,58,701
VI
0
0
1,80,10,334
1,66,58,701
VII (V - VI)
VIII
14
0
0
1,80,10,334 1,66,58,701
IX ( VII + VIII )
X
18
53,06,839
33,27,156
(1) \
(2)
0
0
3,455
53,10,294
16,480
33,43,636
(3)
XI \ ()
1,27,00,040 1,33,15,065
XII \ / ()
0
0
XIII \
0
0
XIV \ / ()
( \) (XII- XIII)
0
0
1,27,00,040 1,33,15,065
XV () (XI+XIV)
XVI ]
19
2.54
2.66
(1)
(2)
2.54
2.66
2
/ 1-21

. .

: 06906S
( )

.026421

.

\
: 20.05.2015
278

Profit and Loss Statement for the year ended 31.03.2015

Particulars
Note No Year ended 31st March, 2015 Year ended 31st March, 2014

`
`
`
`
I Revenue from operations

Interest income :
14
1,89,47,142
1,78,74,543
II Other income : (Profit / Loss)
14
1,26,823
-3,529

Provision for Bad & Doubtful debts

written back
0
14,35,014
III Total Revenue ( I + II )
1,90,73,965
1,93,06,028
IV Expenses :

Cost of material consumed
0
0

Purchase of stock - in - trade
0
0

Changes in inventories of finished goods

work-in-progress and stock-in-trade
0
0

Employee Benefits expenses
15
7,79,157
10,69,567

Administrative and other Expenses 16
54,698
44,890

Depreciation and amortization expenses 7
13,647
6,205

Other Expenses-Rent, Legal &

Professional Fee , Audit fee etc,.
17
2,16,129
91,651

Bad Debts written off
0
14,35,014

Total Expenses
10,63,631
26,47,327
V Profit before exceptional and

extraordinary items and tax
1,80,10,334
1,66,58,701
VI Exceptional Items
0
0
VII Profit before extraordinary items

and tax ( V - VI )
1,80,10,334
1,66,58,701
VIII Extraordinary Items
14
0
0
IX Profit Before Tax ( VII + VIII )
1,80,10,334 1,66,58,701
X Tax Expense
18

(1) Current tax
53,06,839
33,27,156

(2) Deferred tax
0
0

(3) Income Tax for earlier Asst. Years
3,455
53,10,294
16,480
33,43,636
XI Profit/(Loss) for the period from

continuing operations
1,27,00,040
1,33,15,065
XII Profit/ ( Loss) from discontinuing
Operations
0
0
XIII Tax expense of discontinuing
operations
0
0
XIV Profit/ (Loss) from discontinuing

operations (after tax) ( XII - XIII )
0
0
XV Profit /( Loss) for the period (XI + XIV)
1,27,00,040
1,33,15,065
XVI Earnings per equity share :
19

(1) Basic
2.54
2.66

(2) Diluted
2.54
2.66
SIGNIFICANT ACCOUNTING POLICIES 2
The Notes referred to above form an integral part of the Profit & Loss statement 1 to 21
S.K.Kalra
V.M.Parthasarathi
FRN : 06906S
Chairman
Director
Director
PARTNER
L.Prasanna
M.Raghuram

Director
Director
Managing Director
Company Secretary
PLACE : Hyderabad
DATE : 20.05.2015
279

31 \, 2015
31.03.2015
31.03.2014
`
\

1,80,10,334
1,66,58,701
] :

13,647
6,205

( )-
-114,823
-15,625
]
0
0

0
0

/
0 0
()
61,766
-61,766
()
-94
-672
\ ]
1,79,70,830
1,66,18,093

49,06,515
39,23,796
\ 1,30,64,315 1,26,94,297
:

]
0 0
]
0
41,900

0 0
/
0
41,900

1,30,64,315 1,26,52,397

0
0
] ]
0
0
\
0
0
]
0
0
/ () 0 0
/ / 1,30,64,315 1,26,52,397

20,26,70,600
19,00,18,203
21,57,34,915
20,26,70,600
1,30,64,315
1,26,52,397
: 1. { ( ) , 2006 . 3

2.

3. ] ,
1 21

: 06906S
( )

.026421

.

\
: 20.05.2015
280

Cash Flow Statement for the Year ended 31st March, 2015

Particulars
31.03.2015
31.03.2014

`
`
`
`
Net cash inflow from operating activities
Profit Before Tax
1,80,10,334
1,66,58,701
Adjustments :

Depreciation
13,647
6,205
Cash flow from investment business change in the value of stocks (increase)
-1,14,823
-15,625
Interest received
0
0
Dividend paid
0
0
Net cash inflow/ (outflow) from returns
on investments and servicing of finance
0
0
Decrease / (Increase) in Debtors
61,766
-61,766
Increase/(Decrese) in Creditors
-94
-672
Cash Generated from operations
1,79,70,830
1,66,18,093
Direct Taxes paid net of refunds,if any
49,06,515
39,23,796
Net Cash from Operating Activities
1,30,64,315
1,26,94,297
Cash flow from Investing activities :

Payments to acquire intangible fixed assets
0
0
Payments to acquire tangible fixed assets
0
41,900
Receipts from sales of tangible fixed assets
0
0
Net cash inflow/ (outflow) from investing
activities
0
41,900
Net cash inflow before financing
1,30,64,315
1,26,52,397
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
1,30,64,315
1,26,52,397
Cash and Cash Equivalents as at
20,26,70,600
19,00,18,203
Cash and Cash Equivalent as at the end
of the year
21,57,34,915
1,30,64,315
20,26,70,600
1,26,52,397
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

S.K.Kalra
V.M.Parthasarathi
FRN : 06906S
Chairman
Director
Director
PARTNER
L.Prasanna
M.Raghuram

Director
Director
Managing Director
Company Secretary
PLACE : Hyderabad
DATE : 20.05.2015
281
(2) ]
] ]
, ,
].
.
]
, ]
.
.
] ]
, ] ,

. 1/- ] .
\. \
\
] .
.
1.
, 2013 \ II
-
]
2.
\ 1 ,

]. \
\ ] ,
]
] .
1 -
{ , ( )
{ , 2013
(])
\
, , ] \
, ]
]
,
\ , ]
\ ,
\
/ , - ]

2
.
()
] .
, ].
. -
.

] .
.]
(1) ]
] ,
].
1. ] .
2. ] .
3. ] .
282

NOTE No : 1 : - BASIS OF PREPARATION
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, 2013 and
the Accounting Standards as specified in the Companies
(Accounting Standard) Rules, prescribed by the Central
Government. However, certain escalation and other claims,
which are not ascertainable or acknowledged by customers,
are not taken into account.
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 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.
Purchase and Sale of securities are accounted on execution of contracts.
2. Where accounts are considered doubtful.
3. Where parties are facing prolonged financial difficulties.
1. Assets for own use.
Depreciation is provided on straight-line method on the

basis of useful life and carrying cost in accordance with
Schedule II of the Companies Act, 2013
2. Assets leased out.
Since the residual value is `1/- no depreciation has been

provided on the Assets Leased out.
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:
D. INTEREST:
1. Where suits have been filed.
All fixed assets including assets given on lease are

valued at cost.
G. DEPRECIATION:
C. INVESTMENT BUSINESS:
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.
B. HIRE PURCHASE: NIL
[1] Interest and other dues are not recognised until

received on the grounds of prudence in respect of debts
and claims.
F. FIXED ASSETS:
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.
Dividend Income on Shares is recognised when the

owners right to receive payment is established.
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.
A. LEASE FINANCE:
E. STOCK IN TRADE:
NOTE No : 2 : SIGNIFICANT ACCOUNTING POLICIES

[2] Interest on Investments
283
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.
31 \ 2015
. 3 ]

31 \ 2015
31 \ 2014

`
`
`
`

( : 100,00,000 .10 )
10,00,00,000
10,00,00,000
,
50,00,000 .10
5,00,00,000
5,00,00,000
(
)
( : 50,00,000 .10)
5,00,00,000
5,00,00,000
. ]

31 \ 2015

31 \ 2014

`

`

50,00,000
5,00,00,000
50,00,000
5,00,00,000
]
-
-
-

50,00,000 5,00,00,000
50,00,000 5,00,00,000
. /
.10/- 31 \,
2015 ( - )
. / / /

31 \ 2015

31 \ 2014

`
`
`
`
, /
50,00,000 .10
5,00,00,000
5,00,00,000
( : 50,00,000
.10 )

5,00,00,000
5,00,00,000
. 5%

31 \ 2015

31 \ 2014

`

`
.10
,
50,00,000
100.00%
50,00,000
100.00%

.
\. \

] ,
]

. /
,

].

. ]

284

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015
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.
5,00,00,000
5,00,00,000
(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
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 2015, 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

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
period of five years immediately preceding
the reporting date:
NIL
NIL
g. Securities convertible into equity /

preference shares issued along with the
earliest date of conversion:
NIL
NIL
NIL
NIL
NIL
NIL
h. Calls unpaid:
i. Forfeited Shares

285
.4-

31.03.2015
31.03.2014
`
/ ()

(10,42,99,524)
(11,76,14,589)
]
1,27,00,040
1,33,15,065

(9,15,99,484)

(9,15,99,484)
5 : \ :

31.03.2015

(10,42,99,524)
(10,42,99,524)
31.03.2014
`

36,07,36,930 36,07,36,930

36,07,36,930 36,07,36,930
, / ,
31.03.2015 , ] , 36.07 .
]
6 : \ :

31.03.2015
31.03.2014

0
0
:
i) { .
8,80,412
8,80,412
ii)
45,369
9,25,781
49,463
9,29,875
9,25,781 9,29,875
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 ) ]

29.09.2010 \\ \ \\ 21 ] 2010
08.10.2010
29.09.2010 \\ \\ ]
\\ ] ] \\
\\ 2.51 ] ] 2010 \\ \ 2718
27.10.2010 ]
286

NOTE NO 4 - RESERVES & SURPLUS
Particulars
As on 31.03.2015
As on 31.03.2014

`
`
`
`
Surplus/(deficit) in the Statement of Profit and Loss
Balance as per the last financial statement
(10,42,99,524) (11,76,14,589)
Add: Profit for the year
1,27,00,040
1,33,15,065
Closing Balance

(9,15,99,484) (10,42,99,524 )
Total
(9,15,99,484) (10,42,99,524 )
Note No 5 : NON CURRENT LIABILITIES : LONG TERM PROVISIONS :
Particulars
As on 31.03.2015
As on 31.03.2014

`
`
`
`
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 31.03.2015.
Note No 6 : CURRENT LIABILITIES : TRADE PAYABLE :
Particulars
As on 31.03.2015

As on 31.03.2014

`
`
`
`
Due to Micro and Small Enterprises
0
0
Due to others :
i) A/c M/s Tamilnadu Newsprints & Papers Ltd
8,80,412
8,80,412
ii) Others
45,369
9,25,781
49,463
9,29,875
Total 9,25,781 9,29,875
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.

287
7: \ :

31.13.2015
31.03.2014

()

7,270
7,270
\
35,791
35,791

54,400
54,400
() :

31,26,392
31,26,392

32,23,853
32,23,853
:
32,01,709
31,88,062

22,144
35,791
\ 31, 2015
: 7 : \ : \ :

01.04.2014 ] 31.03.2015 01.04.2014 31.03.2015 31.03.2014 31.03.2015

:

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
0
0
12,500
12,499
0
12,499
1
1
\
34,650
0
0
34,650
5,617 11,413
17,030 29,033
17,620
\
7,250
0
0
7,250
588 2,234
2,822
6,662
4,428
3 ()
54,400
0
0
54,400
18,704 13,647
32,351 35,696
22,049

97,461
0
0
97,461
61,671 13,647
75,318 35,790
22,143
:

31,26,392
0
0
31,26,392
31,26,391
0 31,26,391
1
1
+
32,23,853
0
0
32,23,853 31,88,062 13,647 32,01,709 35,791
22,144

31,81,953 41,900 0
32,23,853 31,81,857 6,205 31,88,062
96 35,791
\\ { 1992 45.29
{ \ () () () \ ] ()
] \ ] ] \
] () \ ] .
]

] ] {
ii) \ 31.03.2014 1/- , ]
: 8 : :

31.13.2015
31.03.2014

-
{ ] ,
\ -

1,87,723
72,900
1,95,456
288
3,83,179
1,90,606
2,63,506

NOTE No : 7 : NON CURRENT ASSETS : TANGIBLE
Particulars

As on 31.03.2015
As on 31.03.2014
`
(A) OWNED ASSETS :

Office Equipment
7,270
Furniture & Fittings
35,791
Computers
54,400
7,270
35,791
54,400
(B) ASSETS GIVEN ON LEASE :

Plant & Machinery
31,26,392
31,26,392
GROSS BLOCK
Less : Depreciation accumulated
32,23,853 32,23,853
32,01,709
31,88,062
Net Block
22,144
35,791
DEPRECIATION STATEMENT FOR THE YEAR ENDED MARCH 31, 2015

NOTE : 7 : NON CURRENT ASSETS: FIXED ASSETS : TANGIBLE
Nature of Assets

Gross Block
Balance as Additions Deletions
on
during the
01.04.2014
year
Depreciation
Net Block
Total as on Total up to For the Total up to

As on
As on
31.03.2015 01.04.2014 year 31.03.2015 31.03.2014 31.03.2015
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
12,500
12,499
12,499
Computer HCL
34,650
34,650
5,617
11,413
17,030
29,033
17,620
Hp Printer
7,250
7,250
588
2,234
2,822
6,662
4,428
Total of 3 (Computers)
54,400
54,400
18,704
13,647
32,351
35,696
22,049
Total of A
97,461
97,461
61,671
13,647
75,318
35,790
22,143
B: Assets given on Lease

Plant & Machinery
31,26,392
31,26,392
31,26,391
31,26,391
Total of A + B
32,23,853
32,23,853
31,88,062
13,647
32,01,709
35,791
22,144
Previous Year
31,81,953
41,900
32,23,853
31,81,857
6,205
31,88,062
96
35,791
(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
1,87,723
Aggregate amount of unquoted shares Valued at Rupee one
1,95,456 3,83,179 1,90,606 2,63,506
289
72,900
\ \ 31.03.2015 /
31.03.2015 \/ \ ]

/ //

]

01.04.2014 01.04.2014 31.03.205 31.03.2015

:
2,16,790 2,68,356
-
-
-
2,16,790 3,83,179
( )
2,16,790 2,68,356
-
-
-
2,16,790 2,68,356
31.03.2015 \
: :

/
{ { {
31.03.2015

31.03.2015 31.03.2015
, ]

31.03.2015 `

`
`
`
`
`

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
: , ] 31.03.2015

21,280
89.29 19,00,000 8.71
1,85,349
1,85,349
\
48
0.00
0 49.45
2,374
2,374

21,328 19,00,000 1,87,723
1,87,723

2,16,790 1,21,84,054 3,83,179
3,83,179
290

Seggregation between quoted and unquoted share is made on BSE / NSE Bulletin for the Business transacted on 31.03.2015.
Further the shares are classified as unquoted, if such shares are not traded during three months period before 31.03.2015.

Opening Opening Purchases/ Purchase/ Sales
Closing
Closing

Stock
stock
Additions
Returns/
stock
stock

Quantity wise
Deletions

01.04.2014 01.04.2014
31.03.2015 31.03.2015

Qty.
` Qty. `
Equity Shares fully paid up
2,16,790
2,68,356
2,16,790
3,83,179
Previous Years figures
2,16,790
2,68,356
2,16,790
2,68,356
List of outstanding shares as on 31.03.2015

A: Shares, which are in physical form:
Name of the Scrip / Equity Shares

Adhunik Synthetics Ltd
Quantity Cost
31.03.2015

`
`
3,000
Cost Mkt. Rate Mkt. Value Cost or Mkt. Value

Value 31.03.2015 31.03.2015 whichever is
`
`
`
less 31.03.2015 `
50.00
1,50,000
1.00
3,000
3,000
Akhil Ceramics Ltd.
5,000
28.75
1,43,750
1.00
5,000
5,000
Arlabs Ltd.
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.
Aryan Finefab Ltd.
Cepham Organics Ltd.
6,600
Dhar Cement Ltd.
20,300
Electra (India) Ltd.
3,300
Gujarat Telephone Cables Ltd. (sent

to SHCIL for Demat)
46,850
40.00
2,64,000
1.00
6,600
6,600
100.00 20,30,000
1.00
20,300
20,300
1,23,750
1.00
3,300
3,300
28.75 13,52,688
1.00
46,850
46,850
37.50
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
51.25 28,39,250
1.00
55,400
55,400
Kunal Engineering Co. Ltd.

Niranjan Piramal Textile Mills Ltd
Nova Electro Magnetics Ltd.
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
2,100
2,100
1,95,462 1,02,84,054
1,95,456
1,95,456
8.71
1,85,349
1,85,349
49.45
2,374
2,374
21,328 19,00,000
1,87,723
1,87,723
2,16,790 1,21,84,054
3,83,179
3,83,179
Rampur Fertilizers Ltd.

Shri Ishar Alloy Steels Ltd.
Sipani Auto Mobiles Ltd.

Total of A
B: Shares, which are in dematerialized form as on 31.03.2015

Ashnoor Textile Mills Ltd.
21,280
Balrampur Chini Mills Ltd
48
Total of B
Total of A and B
89.29 19,00,000
0.00
291
9 : :

31.03.2015
31.03.2014
`
] \ ]
0
61,766
- , ]
( 7) 14,35,014
:
0
0 14,35,014
0

0 61,766
10 : :

31.03.2015
31.03.2014

(i) ;
\
56,34,915
40,70,600
(ii) ]
() 12 :
19,81,00,000 18,35,00,000
() 12
1,20,00,000 21,01,00,000 1,51,00,000 19,86,00,000

21,57,34,915 20,26,70,600
11 : :

31.03.2015
31.03.2014

() 0 0
() - , \ :
ii) 2007-08, 2011-12 2014-15
2,29,24,352 2,32,54,551

2,33,94,077
4,69,725 2,43,61,822
11,07,271
ii) 1994-95, 1995-96, 1996-97, 1999-00 ,2008-09,
2009-10, 2012-13 2013-14 - 10,33,22,264 10,30,92,497
iii)
1,00,000
1,00,000
iv) ]
31,000
1,31,000
31,000
1,31,000

10,39,22,989 10,43,30,768
- :

31.03.2015 31.03.2014

`
`

1994-95 1995-96 2,83,11,822 2,83,11,822

1995-96 1996-97 4,35,81,300 4,35,81,300

1996-97 1997-98 3,02,57,801 3,02,57,801

2007-08 2008-09
39,00,000
39,00,000

2007-08 2008-09
6,800
6,800

2009-10 2010-11
1,075
1,075

2010-11 2011-12
0
6,20,000

2011-12 2012-13 1,09,00,000 1,09,00,000

2011-12 2012-13
3,82,200
3,82,200

2012-13 2013-14
1,08,178
9,53,000

2013-14 2014-15
1,20,514
20,09,000

2014-15 2015-16
35,00,000
0

12,10,69,690 12,03,02,998
292

NOTE No : 9 : TRADE RECEIVABLE :
Particulars

As on 31.03.2015
Interest accrued on deposit but not received
As on 31.03.2014
`
61,766
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
0 61,766
Note No 10 : CASH AND CASH EQUIVALENTS :

Particulars

As on 31.03.2015
As on 31.03.2014
`
56,34,915
40,70,600
(i) Balances with Banks ;

In Current Account
(ii) Bank Deposits
(a) Up to 12 Months Maturity :

19,81,00,000 18,35,00,000
(b) More than 12 Months Maturity
1,20,00,000 21,01,00,000
1,51,00,000
19,86,00,000
Total 21,57,34,915 20,26,70,600

Note No 11 : LONG TERM LOANS AND ADVANCES :
Particulars

As on 31.03.2015
(a) Loans and advances to related parties
As on 31.03.2014
`
(b) Others - Unsecured, considered good:

i) Provision for Income Tax - Financial Year 2007-08,
2011-12 and 2014-15
2,29,24,352
2,32,54,551
Less : Advance Tax and TDS
2,33,94,077
2,43,61,822
4,69,725
11,07,271
ii) Advance Tax and TDS for the Financial Year 1994-95, 1995-96,
1996-97,1999-00, 2008-09, 2009-10, 2012-13 and 2013-14
10,33,22,264 10,30,92,497
iii) Advance to Advocates
1,00,000
iv) Deposit with Telephones Department
31,000
1,31,000
100,000
31,000
1,31,000

Total 10,39,22,989 10,43,30,768
Details of advance Income Tax Payment - Year wise :

Financial Relevant 31.03.2015 31.03.2014

Year
Asst. Year
`
`
1994-95 1995-96 2,83,11,822 2,83,11,822

1995-96 1996-97 4,35,81,300 4,35,81,300
1996-97 1997-98 3,02,57,801 3,02,57,801
2007-08 2008-09 39,00,000 39,00,000
2007-08 2008-09
6,800
6,800
2009-10 2010-11
1,075
1,075
2010-11 2011-12
0 6,20,000
2011-12 2012-13 1,09,00,000 1,09,00,000
2011-12 2012-13 3,82,200 3,82,200
2012-13 2013-14 1,08,178 9,53,000
2013-14 2014-15 1,20,514 20,09,000
2014-15 2015-16 35,00,000
0
Total 12,10,69,690 12,03,02,998
293
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
2011-12
2012-13
14,67,648
14,67,648
2012-13
2013-14
16,14,020
2013-14
2014-15
17,85,365
2014-15
2015-16
18,94,715
. 11 : :

31.03.2015 31.03.2014
`
`
8,19,506
56,46,651 71,51,321
31.03.2015

`
2011-12 2012-13
56,77,308
2012-13 2013-14
14,35,896
2013-14 2014-15
15,99,186
2014-15 2015-16
5,33,314
Total 92,45,704
8,19,506
31.03.2014
`
56,77,308
14,35,872
16,02,642
0
87,15,822
. 5,33,314/-/- \ \ 2014-15 53,06,839/-

. :12 : : (] )

31.03.2015
`
31.03.2014
`
(i) :
] :
) \ ( )
\ 7,98,69,658 7,98,69,658
, \ (\ 1/1998)
) ] .
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

, ] , 26.09.1991 ,
1265 , 7,98,69,658.42 . , ]
/ 21.11.2014 - 6
294

Details of the TDS - Year wise


Year
Asst. Year
`
`
1996-97 1997-98 8,19,506 8,19,506
1999-00 2000-01
2007-08 2008-09 13,42,714 13,42,714
2008-09 2009-10 1,06,836 1,06,836
15,232
15,232
2011-12 2012-13 14,67,648 14,67,648
2012-13 2013-14
0 16,14,020
2013-14 2014-15
0 17,85,365
2014-15 2015-16 18,94,715
Total 56,46,651 71,51,321

Note No 11 : LONG TERM LOANS AND ADVANCES :
Details of MAT Credit Utilised

Year
Asst. Year
`
`
2011-12 2012-13 56,77,308 56,77,308
2012-13 2013-14 14,35,896 14,35,872
2013-14 2014-15 15,99,186 16,02,642
2014-15 2015-16 5,33,314
Total 92,45,704 87,15,822
Provision for Income Tax for the financial year 2014-15 is made ` 5306839/- after considering the MAT credit entitlement
of ` 5,33,314/Note No :12 :CONTINGENT LIABILITIES AND COMMITMENTS :

Particulars
As on 31.03.2015
As on 31.03.2014
`
7,98,69,658
7,98,69,658
(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}

b) Tamilnadu Newsprint & Papers Ltd
2,46,00,000
2,46,00,000
c) Income Tax relating to the Asst. years in appeal 10,21,50,923
10,21,50,923
d) Interest Tax Appels filed by the I T Dept against the

Tribunal Orders.

76,24,756
76,24,756
Total 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 conclusively establish delivery of the securities sold by the plaintiffs to the defendants on 26.09.1991, save and except
295
) \\ 2011 22912292 (. . 6)
:
) : () 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 1,075/-
] \ 92,065 ] , ] \ 25.02.2011 2009-10
] 92,065/- - 18.04.2013
\) 2012-13 - 143(1) \ 3,82,200/-
- , 1961 - (\]
- ) , ] () ]

) 2013-14 .1,15,44.934/- ]
.2,57,160/- , 143(1) \
.1,48,960/- \ 115] ]
() ] ] ]
]) 2014-15 , .4,63,758/-
.1,51,94,322/- ] , ] 234 ] .63,908/- .3,99,850/-
\ .3,43,240/- \ ]\
115] ]
() ] ] ]
)] 1993-94 1997-98 ] , , 1974
, - () ()
() , - -
]
\\ , 1995-96 .6/\/2003
. 86/2012 1993-94 .4/\/2003 . 149/2012.
] , 1974 - - , 1993-94 1995-96
-- 24,26,473/- 8,07,806/-
:
1. ] ] - . . ( ) . .( )
\ 2003-04 . , ] ]
, , .

2) ( ) () .4.00 ] ]
1992 . 1997 . , ]
. ( ) ] ()
] \ ( ) ] . ( )
, .
296
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. The matter
had appeared before Honble Special court on 21st Nov.2014,the plaintiff sought time to file draft issues and Honble court
adjourn the matter for six weeks
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.
OTHER INCOME TAX ISSUES :
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 on 18.04.2013.
f) 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) and on
29.10.2014 the appeal is allowed.
g) Assessement Year 2013-14 : The return filed by the company declaring its income under normal provisions of Income
Tax Act at ` 1,15,44,934/- and claimed refund of `2,57,160/-. Against the said return the company received intimation under
section 143(1) accepting the income declared in the return of income but received refund `1,48,960/- On Verification of
the said intimation it is observed that the demand arose due to not taking into account surcharge and education cess while
giving credit for tax u/s115J. The company filed appeal before CIT (A) which is yet to come for hearing.
h) Assessement Year 2014-15: The return filed by company delcaring its income under normal provisions of Income Tax
Act at `1,51,94,322/- by claiming a refund of `4,63,758/- which however calculated as `3,99,850/- after considering interest
erroneously u/s 234C of `63,908/-. Against the said return the company received intimation under section 143(1) accepting
the income delcared in the return of income but received refund of `3,43,240/-. On verification of the said intimation it is
observed that the demand arose due to not taking into account surcharge and education cess while giving credit for tax
u/s 115J. The company file appeal before CIT(A) which is yet to come for hearing.
i) 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. Years 1993-94 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 ITA 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 eligible 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 l992 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.
297
3) 1994 ( ) 153 155 100 28/09/1994

] ] ].
..7,08,000/- ] ( ) 9/08/2004 .
] ] , ,
.
4) , . . , 1947 17/2011 ]
\ . . , 1947 (1) () - , .. 14/2012 ]
.. \ { ] ]-- ,

: 13 :
) . ( : )
) ] ] . ( : )
. 14 - \ ]

1, 2014 \ 31, 2015

`
`
1, 2013 \ 31, 2014

`
`
) ]

(i) ]
1,89,47,142
1,78,53,647

(ii) .. ]
0
1,89,47,142
20,896
1,78,74,543
) :

i)
-
12,000
12,096

ii) :

2,68,356

]
0

2,68,356

()
0

3,83,179

] / ( /)
1,14,823
1,26,823
-15,625
-3,529

1,90,73,965 1,78,71,014
15 :- \

1, 2014 \ 31, 2015

1, 2013 \ 31, 2014

6,79,435
9,30,850

30,660
44,540
\
32,415
37,400
\
36,647
7,79,157
56,777
10,69,567

7,79,157 10,69,567
: 16 :

1, 2014 \ 31, 2015 1, 2013 \ 31, 2014

`
`
`

`
0
0
36,000
30,000
3,042
5,807

15,656

298
54,698
9,083
44,890
54,698 44,890

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.28/09/1994 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
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

For the period April 1, 2014 to For the period April 1, 2013 to
March 31, 2015
March 31, 2014
`
a) Interest Income

(i) On Bank Deposits
1,89,47,142
1,78,53,647

(ii) Interest on I.T Refunds
1,89,47,142
20,896
b) Other Income :

i) Dividend Income

from domestic companies
12,000
12,096

(ii) Investment Business :

Opening Stock
2,68,356

Add : Purchases
0

Total
2,68,356

Sales of stock ( Cost)
0

Closing
3,83,179

Earnings / Net of Investments ( Profit / Loss )
1,14,823
1,26,823
-15,625
1,78,74,543
-3,529
Total 1,90,73,965 1,78,71,014

NOTE NO.15 :- EMPLOYEE BENEFITS EXPENSES
Particulars

March 31, 2015
March 31, 2014

Salaries & Allowances
6,79,435
9,30,850
Contribution to Pension Fund
30,660
44,540
Gratuity Expense
32,415
37,400
Staff welfare expenses
36,647
56,777
7,79,157
Total
10,69,567
7,79,157 10,69,567
NOTE No : 16 : ADMINISTRATIVE AND OTHER EXPENSES

Particulars

March 31, 2015
March 31, 2014
`
Travelling & Conveyance
Rent for office Premises
36,000
30,000
Printing & Stationery
3,042
5,807
Postage & Telephones

Total
15,656
299
54,698
9,083
44,890
54,698 44,890
.17 :-

1, 2014 \ 31, 2015

`
1, 2013 \ 31, 2014

`

-
28,090
28,090
-
16,854
44,944
16,854
44,944

83,711
34,996
-
0 0

82,100
5,500
-
0
0
-
5,374
6,211

2,16,129 91,651
() \
] / ] /
\ ] ]
: 18 : :

:
(
)

1, 2014 \ 31, 2015 1, 2013 \ 31, 2014

`
58,40,153 49,29,798
5,33,314
53,06,839
53,06,839
16,02,642
33,27,156
33,27,156
53,06,839 33,27,156
2014-15 ] 18,92,793/- 35,00,000/- \

, 2013-14 ]
17,85,365/- 20,09,000/- , 1961

/
2013-14 2014-15 ,

: 19 : ] :

1, 2014 \ 31, 2015 1, 2013 \ 31, 2014

(i) ]
2.54
2.66

:
:
] (/ )
1,27,00,040
1,33,15,065
50,00,000
2.54
50,00,000
2.66
300

NOTE No:17: OTHER EXPENSES

Particulars

March 31, 2015
March 31, 2014
Payment to Auditors
-As Auditor
28,090
28,090
-For Tax Audit
16,854
16,854
44,944
Legal & Professional fees
44,944
83,711
34,996
Reimbursement of Expenses - Legal
Filing Fees
82,100
5,500
Computer Maintenance
Miscellaneous expenses
5,374
6,211
Total
2,16,129 91,651
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, 2015
March 31, 2014
Tax Expense under normal provisions of I.T Act

Less: MAT Credit Entitlement during the year
Provision made for Tax expense for the year
(Equal to the Tax Expense under MAT Provisions
of I.T Act)
58,40,153
49,29,798
5,33,314
16,02,642
53,06,839
53,06,839
Total
33,27,156
33,27,156
53,06,839 33,27,156
The Company has paid the advance Income Tax of ` 35,00,000/- in addition to the TDS of `18,92,793/- on interest income during the year 2014-15. The Company comes under the regular provisions of the Income Tax during the current
year but eligible for MAT credit. During the previous year 2013-14 the company has paid an advance Income tax of
`20,09,000/- in addition to the TDS of `17,85,365/- 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 2013-14 and 2014-15. We
have reversed the existing provision for tax, TDS & Advance Tax paid to the relevant assessment years.
NOTE No : 19 : EARNINGS PER EQUITY SHARE :

Particulars

March 31, 2015
March 31, 2014
(i) BASIC & DILUTED : Earnings per Equity Share
2.54
2.66
Calculation of EPS :
A : Net Profit
B : Weighted Average Number of Equity Shares
BASIC & DILUTED Earnings per Equity Share ( A / B )
1,27,00,040
1,33,15,065
50,00,000
50,00,000
2.54 2.66
301
: 20 : ] :
) ] 9 ] 1997 { ]
(\) .2238/\ 0472/2004-05 28] 2005 ( ) ]
] ( )
]. ( ) \ \ ] 3
( ) \ ] ( ) ]
]. ( ) ] \ \
03.02.2005 . ( ) , .
) ( ) 09.01.2008 \
( ) ].. { 05.12.2008
] .
: 21 : \ :
) , 1956 \ 6 -1 -2 ] ]
, ] .
) \ / / .

302

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.
303
2014-15
2013 160
( 02352910),
( 06974914) (
06985446) 17.11.2014
( 07031463)
05.03.2015
,
. ()
, 31 \, 2015 -
- , - 24

2013 196, 197 203

\ 5 ,

( 0696684)
] 09.09.2014 2

31 \, 2015

( . )
2014-15 2013-14
190.74
193.06
180.23
166.64
180.23
166.64
0.13
0.06
180.10
166.58
53.10
33.43
127.00
133.15
127.00
133.15
127.00
133.15
2013 203
17.11.2014 \

( 01952165)
( 06806566), ] 30.05.2014 22.01.2014
, 25 ] 2014
]

, ( 2289588) 01.09.2012

01.05.2014
( 06389488) 04.09.2012

01.06.2014
] ]
2014- 15
.1,27,00,040 ] 31.03.2015
.9,15,99,484 \ (2013-14 .10,42,99,524)
2. 31 \
\

3. ,

4. 2014-15

5.
5
1) 24.04.2014
3) 09.09.2014 5) 05.03.2015
2) 30.05.2014 4) 17.11.2014
6.
,

\ ( 05252424) 01.09.2012

01.07.2014

( 06806570) 22.01.2014

01.08.2014
( 06806579) 22.01.2014

01.11.2014

( 05131951),
18.11.2011

01.06.2014
304

Directors Report 2014-15
Appointments:
To the Members,
The Directors have pleasure in presenting before you the
24th Annual Report of the Company together with the
Audited Statements of Accounts for the year ended 31st
March, 2015.
1.The Financial Highlights of the Company for the year
ended 31.03.2015 is summarized
(Amount ` in Lakhs)
Particulars
Gross Income
Profit before interest
and Depreciation
Finance Charges
Gross profit
Provision for Depreciation
Net Profit before Tax
Provision for Tax
Balance of Profit Brought
forward
Balance available for
appropriation
Proposed Dividend on
Equity Shares
Tax on Proposed Dividend
Tranfer to General Reserve
Surplus Carried to Balance
Sheet
2014-15 2013-14
190.74
193.06
180.23
166.64
Nil
180.23
0.13
180.10
53.10
127.00
Nil
166.64
0.06
166.58
33.43
133.15
127.00
133.15
Nil
Nil
Nil
Nil
127.00
Nil
Nil
133.15
The Income mainly consists of interest on Bank Deposits.

The Company earned a profit of `1,27,00,040 during
the year 2014-15 after providing for depreciation and
income tax net of Mat credit entitlement. The Company
is still an accumulated loss of `9,15,99,484 as on
31.03.2015(`10,42,99,524 in 2013-14)
2. EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL
STATEMENTS: There are no material changes and
commitments affecting Financial position of the Company
between 31st March and the date of Boards report.
3. CHANGE IN THE NATURE OF BUSINESS , IF ANY:
There is no Change in the Nature of the Business
4. DIVIDEND: No dividend is recommended during the
Financial Year 2014-15.
5. BOARD MEETINGS: The Board of Directors met 5
times during this financial year on the following dates:
1) 24-04-2014
3)09-09-2014
2) 30-05-2014
4)17-11-2014
5) 05-03-2015
6. DIRECTORS AND KEY MANANGERIAL PERSONNEL;

Following are the particulars of appointments, changes in
designations and resignations of the Directors and KMP
during the financial year.
Pursuant to the provisions of Section 160 of the

Companies Act 2013, Shri.S.V.Venkatasubramanian (Din
02352910), Shri P.Radha Krishna Murthy (Din 06974914)
and V.M.Parthasarathi (Din 06985446) were appointed as
Additional Directors of the Company w.e.f. 17-11-2014,
and Shri D.Durga Prasad (Din 07031463) was appointed
as Additional Director of the Company W.e.f.05-03-2015.
Pursuant to Sec.196, 197, and 203 of companies Act 2013,
and Schedule 5 to the Act including any other modification
or reenactment thereof and subject to the approval by
a resolution of the Share holders in General meeting,
Mr.Lanka Prasanna (Din 0696684) has been appointed
as Managing Director of the Company on deputation from
Andhra Bank for a period of 2 years commencing from 0909-2014.
Pursuant to Sec 203 and other applicable provisions
of Companies Act, 2013, Mr. M. Raghuram has been
appointed as the Company Secretary of the Company
w.e.f. 17.11.2014
Change in Designation:
Shri Satish Kumar Kalra (Din 01952165) and Shri
V.B.Bhagavathi (Din 06806566) who were appointed
as Additional Directors on 30.05.2014 and 22.01.2014
respectively were regularized as Directors at Annual
General Meeting held on 25th June 2014.
Resignations:
Shri K.K.Misra, (Din 2289588) who has been on the Board
since 01-09-2012 resigned from the Board on account
of his superannuation from Andhra Banks Service as an
executive Director and the same was accepted w.e.f 0105-2014.
Shri K.V.Kannan (Din 06389488) has been on the board
since 04-09-2012 resigned from the Board on his retirement
as General Manager from Andhra Banks Service on
Superannuation and same was accepted w.e.f.01-06-2014.
Shri T.V.S.Chandra Sekhar (Din 05252424) has been on
the Board since 01-09-2012 resigned from the Board on
his retirement as General Manager from Andhra Banks
service on superannuation and the same was accepted
w.e.f.01-07-2014.
Shri B.Bhaskara Sarma (Din 06806570) has been on
the Board since 22-01-2014 resigned from the board
on his retirement as Geeneral Manager from Andhra
Banks Service on Superannuation and same is accepted
w.e.f.01-08-2014.
Smt.Prasanna Panicker (Din 06806579) has been on
the Board since 22-01-2014 resigned from the Board on
her retirement as General manager from Andhra Banks
Service on superannuation and the same was accepted
w.e.f.01.11.2014.
Shri.K.Koteswara Rao (Din 05131951) Managing Director
of the Company has been on the Board since 18-112011 resigned from the Board on his retirement as Chief
Manager from Andhra Banks Service on superannuation
and the same is accepted w.e.f.01-06-2014.
305
, \ 17.11.2014
11. ],
() 2014 134 (3) () 8
],
]

2013 149(6)

149(10)
12. ] \ ] ,
2013 73, 74 76 ()
2014 8(5) ()
7.
2013 177
]
13.
\
,

1)
2)
3)
14.
, ,
,
\ , \
],

8.
2013 134(5)

()
;
15. , 2013
186

() \

]
16. ] ]

() ,

17. 188 (1)

()
(.)
18 ,
2013 197(12)
(\.)

\
19

9.
{ ,
(), ] ] ] / ,
\ .
2013 92(3) ( )
2014 12(1)
] 9
, ] ] ] ,

30
10.
, , 2014-15

2013 139 143
] ]
] ]
306

Shri Y. Amarnath, Company Secretary of the company
resigned from the Board w.e.f. 17.11.2014
11. CONSERVATION OF ENERGY, TECHNOLOGY

ABSORPTION AND FOREIGN EXCHANGE OUTGO:
Statement on declaration from Independent Directors

under Section 149(6) of the Companies Act, 2013 is not
applicable to the Company
The particulars relating to Conservation of Energy,

Technology Absorption, Foreign Exchange Earnings and
outgo, as required to be disclosed under Section 134 (3)
(m) Rule 8 of Companies (Accounts) Rules, 2014 are
either NIL or are not applicable.
Disclosure u/s 149(10) on appointment of independent

directors for the second term by way of special resolution is
not applicable to the Company
7. Composition of Audit Committee
In Accordance with the provisions of Sec.177 of Companies
Act 2013, the Company reconstituted the Audit Committee
comprising of the following Directors at present:
1) Shri S.V.Venkatasubramanian: Chairman
2) Shri V.M.Parthasarathi
: Member
3) Shri V.B.Bhagavathi
: Member
8. DIRECTORS RESPONSIBILITY STATEMENT:

In pursuance of section 134 (5) of the Companies Act,
2013, the Directors hereby confirm that:
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper
explanation relating to material departures;
(b) the directors had 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 at
the end of the financial year and of the profit and loss of the
company for that period;
(c) the directors had taken proper and sufficient care
for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding
the assets of the company and for preventing and detecting
fraud and other irregularities;
(d) the directors had prepared the annual accounts on a
going concern basis; and
Clause (e) is not applicable to the company
(f) the directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively
12. DETAILS RELATING TO DEPOSITS: As the Company

is not accepting any deposits, the requirements of Sections
73, 74 ,& 76 of the Companies Act, 2013 and Rule 8(5) (v)
of Companies (Accounts) Rules 2014 are not applicable.
13. SIGNIFICANT & MATERIAL ORDERS PASSED BY
THE REGULATORS: There are no significant material
orders passed by the regulators and Courts or Tribunals
impacting the going concern status and the companys
operations in future.
14.
DETAILS OF ADEQUACY OF INTERNAL
FINANCIAL CONTROLS : The Company has effective
internal financial controls that ensure orderly and efficient
conduct of its operations, adherence to the companys
policies, safeguarding of its assets, prevention and
detection of frauds and errors, accuracy and completeness
of the accounting records and timely preparation of reliable
financial information.
15. PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS: The Company has not given any loan
or guarantee to any person or body corporate nor invested
in any body corporate during the financial year pursuant to
Section 186 of Companies Act, 2013.
16. RISK MANAGEMENT POLICY: The Company is
maintaining proper reporting system with its Parent
organization by submitting risk profile template on quarterly
basis.
17. RELATED PARTY TRANSACTIONS: The particulars
relating to contracts or arrangements with related parties
referred to in section 188(1) are either nil or not applicable
18. RATIO OF REMUNERATION TO EACH DIRECTOR:
Provisions relating to Section 197(12) of the Companies
Act, 2013 are not applicable to the Company.
9. EXTRACT OF ANNUAL RETURN:
19. INDUSTRY BASED DISCLOSURES AS MANDATED

BY THE RESPECTIVE LAWS GOVERNING THE
COMPANY:
As required pursuant to section 92(3) of the Companies

Act, 2013 and rule 12(1) of the Companies (Management
and Administration) Rules, 2014, an extract of annual
return in Form No. MGT 9 is enclosed as ANNEXURE I
As per the directions of Reserve Bank of India, Non

Banking Financial Companies (NBFCs) accepting / holding
Public Deposits have to file Return in First Schedule as on
the date of closure of every financial year.
10. AUDITORS; 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 2014-15. The provisions
of Sections 139 and 143 of the Companies Act, 2013 are
applicable to the Company.
NBFCs not accepting public deposits should pass a

resolution in the Board of Directors` meeting and thereafter
within 30 days of the commencement of the next financial
year to the effect
Our company has repaid all the public deposits and the
outstanding is Nil and the company is not accepting public
deposits nor would accept public deposits during the year.
307
] ] 2015-16
] ]

,
{
-

20. \ :
5 ( )
, 2013 2014
] \ \ 60,00,000/- .
.5,00,000/-
( )
:04.06.2015.
308

The Company will not accept the deposits from the public
during Financial Year 2015-16.
20. Particulars of Employees:
Pursuant to Rule 5 pursuant to the Companies (Appointment
and Remuneration Managerial Personnel) Rule 2014 of the
Companies Act, 2013 there are no employees who are in
receipt of remuneration of ` 60,00,000/- or more per annum
or ` 5,00,000/- or more per month where employed for a
part of the year.
ACKNOWLEDGEMENTS:
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 its appreciation for the services rendered
and valuable guidance provided by the directors during
their tenure on the Board.
For and on behalf of Board of Directors
Place : Hyderabad
Date : 04.06.2015
(Satish Kumar Kalra)

Chairman
309
- I
. ]-9
. 31.03.2015
( , 2013 92(3) ( ) ,
2014 12(1) )
I. ]
i) -U65910TG1991PLC012376
ii) ] 25.02.1991
iii)
iv) / - ]
v) ] 4-5-1 23, , ], , -500095
vi) \
vii) ] ] , ,
II.
10 % \ ]

III. , .
1

5-9-11, . ,
, - 500004
/
]
/ /
100

, 2013
2(46)
IV. ( ] )
i) -

%
%
A.
(1)
)/
\
)
)]
)
) /
\)
-]
() (1):-
50,00,000 50,00,000 100
50,00,000 50,00,000 100
50,00,000 50,00,000 100
50,00,000 50,00,000 100
310
ANNEXURE - I
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31-03-2015
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

i) CIN:-U65910TG1991PLC012376
ii) Registration Date: 25.02.1991
iii) Name of the Company: ANDHRA BANK FINANCIAL SERVICES LIMITED
iv) Category / Sub-Category of the Company: PUBLIC LIMITED
v) Address of the Registered office and contact details: 4-5-1 TO 23,Andhra Bank Bldgs,Sultan Bazar ,Koti Hyderabad-500095
vi) Whether listed company: No
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any : NA
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:- There are no
principal business activities in the Company.
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES Sl.No
Name and Address of

the company
CIN/GLN
Andhra Bank
NA
5-9-11, Dr. Pattabhi Bhavan,
Saifabad, Hyderabad 500004
Holding /
Subsidiary /
Associate
HOLDING
% of
shares
held
100
Applicable
Section
2(46) of Companies
Act , 2013
IV. SHARE HOLDING PATTERN ( Equity Share Capital Breakup as percentage of Total Equity)
i) Category -wise Share Holding
Category of
shareholders
No. of Shares held at the beginning of

the year
Demat
A.Promoters
(1) Indian
a)Individual/HUF
b)Central Govt
c)State Govt(s)
d)Bodies Corp.
e)Banks / FI
NIL
F) Any Other
Sub-total
(A) (1):NIL
Physical
Total
% of
Total
shares
No. of Shares held at the end of the year

Demat
Physical
Total
% of
Total
shares
%
Change
during
the
year
50,00,000 50,00,000 100
NIL
50,00,000 50,00,000 100
NIL
50,00,000 50,00,000 100
NIL
50,00,000 50,00,000 100
NIL
311
(2)
) -
)
)
) /
)
-] () (2):
() = ()(1)+()(2)

50,00,000
50,00,000
100
50,00,000
50,00,000
100
50,00,000
50,00,000
100
50,00,000
50,00,000
100
. ]
1.
) \
) /
)
) ]
) ] ]
\)
)
]) ] ]
) ( )
-] ()( 1):
2. -
)
i)
ii)
)
i) 1
]
ii)1
]
) ( )
-] ()( 2):
]
()=()(1)+()(2)
. ]

] (++)
312
Category of
shareholders
No. of Shares held at the beginning

of the year
Demat
(2) Foreign
a) NRIs -Individuals
b) Other -Individuals
c) Bodies Corp.
d) Banks / FI
e) Any Other
Sub-total (A) (2):Total shareholding of
Promoter (A) =(A)(1)+(A)(2)
Total
% of
Total
shares
Demat
Physical
Total
% of
Total
shares
%
Change
during
the
year
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
50,00,000
50,00,000 100
NIL
50,00,000
50,00,000 100
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
50,00,000
50,00,000 100
NIL
50,00,000
50,00,000 100
NIL
B. Public
Shareholding
1. Institutions
a) Mutual Funds
b) Banks / FI
c) Central Govt
d) State Govt
e) Venture Capital Funds
f) Insurance Companies
g) FIIs
h) ForeignVenture
Capital Funds
i) Others
Sub-total (B)(1):NIL
2. Non- Institutions
a) Bodies Corp.
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders
holding nominal share
capital upto ` 1 lakh
ii) Individual
shareholders holding
nominal share capital in
excess of ` 1 lakh
c) Others (specify)
NIL
Sub-total (B)(2):Total Public
NIL
Shareholding
(B)=(B)(1)+(B)(2)
C. Shares held by
Custodian for
GDRs & ADRs
Grand Total
(A+B+C)
Physical
No. of Shares held at the end of the

year
313
(ii)

/
%

/
%
50,00,000
100
----
50,00,000
100
----
50,00,000
100
----
50,00,000
100
----
(iii) ( , ): 2014-15

(iv) \\ (, ] ):
(v) :
.

/
/ -
/ (.
/ //
):

i)
ii) ]
iii) \ ]
(i+ii+iii)

i)
ii) ]
iii) \ ]
(i+ii+iii)
V.
/ \ ] ]
314

ii) Shareholding of Promoters
Shareholders
Name
ANDHRA BANK
Shareholding at the beginning of the

year
Share holding at the end of the year
No.of
Shares
% of total
Shares
of the
company
%of Shares
Pledged /
encumbered
to total
shares
No.
of Shares
% of total
Shares
of the
company
%of Shares
Pledged /
encumbered
to total
shares
% change in
share holding
during the
year
50,00,000
100
------
50,00,000
100
-------
NIL
Total
50,00,000
100
-----50,00,000
100
------NIL
(iii) Change in Promoters Shareholding (please specify, if there is no change): There is no change in Promoters
Shareholding during the Financial Year 2014-15
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and
ADRs): NA
(v) Shareholding of Directors and Key Managerial Personnel: NIL
No.
Shareholding at the beginning

of the year
Cumulative Shareholding during the

year
For Each of the Directors and

KMP
No. of shares
% of total shares
of the Company
No. of
shares
% of total shares of the

company
At the beginning of the year

Date wise Increase / Decrease
in Shareholding during the
year specifying the reasons
for increase / decrease
(e.g.allotment / transfer / bonus/
sweat equity etc):
NIL
NIL
NA
NA
NIL
NIL
NA
NA
At the End of the year
NIL
NA
NIL
NA
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans
excluding
deposits
Unsecured
Loans
Deposits
Total
Indebtedness
Indebtedness at the beginning of the financial year

i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Total (i+ii+iii)
NIL
NIL
NIL
NIL
Change in Indebtedness during the financial year

Addition
Reduction
NIL
NIL
NIL
NIL
Net Change
NIL
NIL
NIL
NIL
Indebtedness at the end of the financial year

i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
NIL
NIL
NIL
NIL
Total (i+ii+iii)
NIL
NIL
NIL
NIL
315
VI.
. , /

)- ,1961 17(1)
) ,1961 17(2)
) ,1961 17(3)
: .
` 9.40
` 9.40
` 9.40
` 9.40
()
\\
. :

` 30
3.

,
(1)
4. -

,
(2)
()=(1+2)
` 9.40
` 30
. // -

1.

) - ,1961 17(1)
) ,1961 17(2)
) ,1961 17(3)
- -
316
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
SI.
no.
Particulars of Remuneration
Gross Salary
(a) Salary as per provisions contained in section 17(1) of
the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income
Tax Act,1961
Name of MD: Mr. Lanka Prasanna
Total Amount
` 9.40 Lacs p.a.

NIL
NIL
`9.40 Lacs p.a.

NIL
NIL
Stock Option
NIL
NIL
Sweat Equity
NIL
NIL
Commission - as % of profit
NIL
NIL
Others
NIL
NIL
` 9.40 Lacs p.a.
` 9.40 Lacs p.a.
Total (A)
Ceiling as per the Act
B. Remuneration to other directors:
Sl.No
` 30 Lacs p.a.
Nil
Name of Directors
Total Amount
3. Independent Directors
Fee for attending board committee meetings
Commission
Others
NIL
Total (1)
NIL
4. Other Non-Executive Directors

Fee for attending board committee meetings
Commission
Others
NIL
Total (2)
NIL
Total (B)=(1+2)
NIL
Total Managerial Remuneration
` 9.40 Lacs p.a.
Overall Ceiling as per the Act
` 30 Lacs p.a
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD: NIL

Sl.NO
Key Managerial Personnel

CEO
Company
Secretary
CFO
Total
1.
Gross salary
(a) Salary as per provisions contained in section 17(1) of the
Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961
(c) Profits in lieu of salary under section 17(3) of the
Income Tax Act, 1961
NA
NA
NA
NA
Stock Option
NA
NA
NA
NA
Sweat Equity
NA
NA
NA
NA
Commission as % of profit
NA
NA
NA
NA
Other
NA
NA
NA
NA
Total
----
----
----
----
317
VII. /]/ -
/]/

. \
318
(/
(//
)
,
( )
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL

TYPE
Section of the
companies Act
Brief Description Details of

Penalty /
Punishment/
Compounding
fees imposed
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
319
Authority (RD/
NCLT/COURT)
Appeal made, if
any (give Details)

()
- , ] \ 31, 2015
-
- \
( , )
] : ] ,
2013 ( ) 134(5)

] , ] , 2013 (``'')
133 () , 2014 7
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- \ ] ()
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, ] ]
{,
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, 2014 , ]
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- \

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) , ,
) - ,
{
] 9,1997 { ,
1934 (1934 2) 56 1 ]
] -
{ 28.01.2005
\
20 ] {
. 28.01.2005
, ] ,
, { .
09.01.2008 ]
{ .05.12.2008

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-
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320
.1 , ,


INDEPENDENT AUDITORS REPORT
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
financial control relevant to the Companys preparation
of the financial statements that give a true and fair view
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 the Companys Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.
OPINION
In our opinion and to the best of our information and

according to the explanations given to us, the aforesaid
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)
b) in the case of the Profit and Loss Account, of the

profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash

flows for the year ended on that date.
Emphasis of matters
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. 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.
The Board of directors of the company has passed a

resolution for non acceptance of any public deposits.
To
The Members of
Andhra Bank Financial Services Limited.
Report on the Financial Statments

We have audited the accompanying financial

statements of Andhra Bank Financial Services Limited
(the Company), which comprise the Balance Sheet
as at March 31, 2015, 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.(IF BRANCHES ARE
THEN WE HAVE TO COMMENT)
MANAGEMENTS RESPONSIBILITY
FINANCIAL STATEMENTS
The Companys board of directors is responsible for

the matters stated in Section 134(5) of the Companies
Act, 2013 (the Act) with respect to 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 in section 133 of the
Companies Act, 2013 (the Act)read with rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility
alsoincludesmaintenance of adequate accounting
records in accordance with the provisions of the
Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other
irregularities; selection and application of appropriate
accounting policies; making judgements and estimates
and estimates that are resonable and prudent; and the
design, implementation and maintenance of adequate
internal financial controls that were operating effectively
for ensuring the accuaracy and completeness of the
accounting records, 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.
FOR
THE
Auditorss Responsibility
Our responsibility is to express an opinion on these

financial statements based on our audit.
We have taken into account the provisions of the Act,

the accounting and auditing standards and matters
which are required to be included in the audit report
under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the

Standards on Auditing specified under Section 143(10)
of the Act. 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.
in the case of the Balance Sheet, of the state of

affairs of the Company as at March 31, 2015;
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.
321
1. 143 - (11)
] ( ) , 2015 ()
, 3 4

2. , 2013
143(5) - II

3. 143 (1)
)
) ] ,

) , ] ,
\
) ]

) ]
\)

4. 143(1) ,

) \ , ] ]

322
) , ]\
]
\
) -,

) , , 2013
133 ]
() , 2014 7
) \ 31, 2015
, ] ,
, 2013 164 (2)
31.03.2015
\)
\

06906

( . )
^
. 026421

20.05.2015

1. As required by the Companies (Auditors Report)
Order, 2015 (the Order) issued by the Central
Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the Annexure-I a
statement on the matters specified in paragraphs 3
and 4 of the Order.
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.
2. As required by the Companies Act, 2013, we comply

the directions given by the Comptroller and Auditor
General of India in terms of the section 143 (5) of
the Act, in the Annexure-II.
d) In our opinion, the aforesaid financial statements

comply with the Accounting Standards referred in
section 133 of the Companies Act, 2013, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
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.
3. As required by section 143(1) of the Act, we report

that:
e) on the basis of written representations received

from the directors as on March 31, 2015, and
taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of subsection (2) of section 164 of the Companies Act,
2013.
a) The Company has not made any loans and

advances.
b) The transactions of the Company which are merely
represented by book entries are not prejudicial to
the interest of the Company.
f) With respect to the adequacy of the internal financial

controls over financial reporting of the company and
the operating effectiveness of such controls refer to
our separate report in Annexure A
c) The Company has not sold any assets of the

Company that consists of shares, debentures and
other securities.
d) The Company has not shown any loans and
advances made by it as deposited.
For NALINI & MURALI ASSOCIATES.

e) No personal Expenses have been charged to
revenue account.
FRN:06906S
f) As per the books and documents produced to us, no

shares have been allotted for cash.
(CA A. NALINI MOHANA RAO)
Report on Other legal and Regulatory Requirements
PARTNER
4. As required by section 143(3) of the Act, we report

that:
M.No: 026421

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;
Place: Hyderabad
Date: 20.05.2015
323
31 \ 2015
. - -1
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, \ 1. () \ , ]
\

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2. () , , \
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2013 189 ] \
iii () ()

4. \ ,
-

5. , 2013 73 76
]
6. , 2013 148 (1)

7. \ , \
\ ]
() , , \ ] , , -, -, -, -, ]
, , ,

] \
6 31 \, 2015

324
() \ , -, ,
-, -,
, ] \ ]
() \
1956 (1956
1)

8. \
-
, \
9. \
,
, \- \
10. \ ,

11. \
,

12. \
,

\

06906
( . )
^
. 026421

20.05.2015

The Annexure-I 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, 2015.
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:
State Insurance, Income-tax, Sales-tax, Wealth Tax,

Service Tax, Custom Duty, Excise Duty, Value Added
Tax,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, 2015
for a period of more than six months from the date they
became payable.
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) 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
value added tax and excise duty which have not been
deposited on account of any disputes.
(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.
(c) According to the information and explanations given

to us and on the basis of our examination of the books
of account, the Company is not required to transfer
any amount to investor education and protection
fund in accordance with the relevant provisions of
the Companies Act, 1956 (1 of 1956) and rules made
under.
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.
8. The Company hasthe accumulated loss and has not

incurred cash loss during the financial year covered
by our audit and in the immediately preceding financial
year.
9. 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.
(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.
10. According to the information and explanations given to

us, the Company has not given any guarantee for loans
taken by others from banks or financial institutions.
3. 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
189 of the Companies Act, 2013. Consequently, the
provisions of clauses iii (a)and iii(b) of the order are
not applicable to the Company.
11. 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.
12. 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.
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.

FRN:06906S
5. The Company has not accepted any deposits covered

under section 73 and 76 of the Companies Act, 2013.
6. The company is not required to maintain cost records
u/s 148(1) of the Companies Act, 2013.
7. As per information & explanation furnished to us

and in our opinion, Provident Fund & ESI Act are not
applicable to the company
M.No: 026421
PARTNER
Place: Hyderabad
(a) According to the records of the company, undisputed

statutory dues including Provident Fund,Employees
Date: 20.05.2015
325
... 31\ 2015 2 - II

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. ( ) \\
2011 2291-2292 )
0
\\ , 1992
24% ]
\\ { \ 12 % ]
0
0
0
0
0
\\ { \
\\ 01.03.2011

(2011 2291-2292 )
\\ ]
) :
.
( ] ):

0
0
0
23.03.2011 ]

] ]
]
]
326

The Annexure-II referred to in paragraph 2 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, 2015.
1. As per the information given to us the Company has not been selected for disinvestment.
2. According to the information and explanations given to us and on the basis of our examination of the books of
account, there are no cases of waiver/written off of debts/loans/interst etc.,
3. Yes the Company has maintained proper records for inventories lying with third parties. There are no assets
received from Govt as gift or other authorities.
4. According to the information and explanations given to us and on the basis of our examination of the available
documents, the Company has the following legal/arbitration cases pending.During the year no legal fee was paid to
any lawyer. As per the information given to us there is a proper system for paying the legal expenditure.
a. CIVIL SUITS:
Sl.
No
PARTICULARS
01
Standard Chartered Bank (SCB) Vs BFSL,

Andhra Bank & others: [Civil Appeal No. 9540
& 9541/2010 in the Supreme Court]
STATUS
Initially during Nov 1992, SCB claimed Rs 55.26

Crore alleging that they have not received the
original Letter of Allotment but only photo copy.
Special Court dismissed SCB suit with cost.
SCB filed SLP before the Honble Supreme Court

for which leave was granted on 08.08.2011 and
then converted the case as Civil Appeal. The case
has not come up for regular hearing till now.
02
Civil Suit No 1 of 1998 In the Special Court, Mumbai

Standard Chartered Bank (SCB) Vs Andhra Bank
Financial Services Ltd, (ABFSL) Defendants and
Andhra Bank, H P Dalal and the Custodian are the
Respondents.
Initially the Civil Suit was filed in the High Court, Bombay
on 27.11.1992 numbered as 3764 of 1992, subsequently
transferred to Special Court, Mumbai and numbered as
1 of 1998. Came for hearing on 21.11.2014 .The Plaintiff
sought time to file draft issues and the Court adjourned
the matter for 6 weeks
03
Tamilnadu News Print & Papers Ltd (TNPL) Vs

Andhra Bank Financial Services Ltd : [Civil Appeal
No 2291-2292 of 2011 before Supreme Court]
TNPL filed a civil suit in the High Court, Madras

claiming interest at 24% in the security transactions
of 1992. Division
Bench of Madras High Court
gave an order for Interest at 12% p.a.
Aggrieved by the order of Division Bench of Madras

High Court, TNPL filed SLP and obtained Leave
in the Supreme Court on 01.03.2011. The case is
converted into civil appeal (2291-2292 of 2011) on
granting Leave. The Case in the Honble Supreme
Court yet to come up for regular hearing.
b. LABOUR SUIT:
Sl.no
Particulars
STATUS
01
Appeal before the Central Govt Industrial

Tribunal (CGIT) : Hyderabad
On 22.03.2011 one person who worked on a temporary

basis in the Company has filed a complaint seeking
employment in the Andhra Bank with a copy to ABFSL.
His application for employment was rejected in the
Andhra Bank since there is no privity of contract with
Andhra Bank. Now he has appealed to CGIT
327
)

(i)

1993-94
1996-97
1994-95
1995-96
1995-96
1997-98
1999-00
320/2006
424/2005
425/2005
445/2005
114/2012
229/2007
228/2007
25.07.2006
22.10.2005
22.10.2005
22.10.2005
11.09.2006
02.07.2007
02.07.2007

29.12.2003
] 1994-95, 1995-96,
1996-97 24.07.2013
1993-94, 1997-98
1999-00 ]

(ii)
.
04.10.2002 ] ,
\ 1996-97
1997-98 ] ] \\

] ,
\\
]
01

06906
( . )

^

. 026421
:
: 20.05.2015
328

c.INCOME TAX APPEALS
(i)
1993-94
IATTA 320/2006
25.07.2006
1996-97
ITTA 424/2005
22.10.2005
1994-95
ITTA 425/2005
22.10.2005
1995-96
ITTA 445/2005
22.10.2005
1995-96
ITTA 114/2012
11.9.2006
1997-98
ITTA 229/2007
02.07.2007
1999-00
ITTA 228/2007
02.07.2007
Out of the total seven appeals filed by the company against

the orders of the ITAT, Hyderabad one appeal was already
admitted on 29.12.2005 and other three appeals relating
to the Asst Years 1994-95, 1995-96, 1996-97 were heard
and admitted on 24.07.2013 and the remaining three have
to be admitted relating to the Asst Years 1993-94,1997-98
and 1999-00. These cases have not yet come up for regular
hearing.
(ii)
SL NO
PARTICULARS
01
Interest Tax appeals filed by the Tax Department
STATUS
On 04.10.2002 Tax department filed two appeals for

A Y 1996-97 & 1997-98 against the Orders of the ITAT,
Hyderabad Bench relating to the Interest Tax which was
admitted by the High Court.
The Tax department treating the Hire purchase & Leasing
transactions is as loans and the installments received
from the Hire purchase and leasing transactions were
considered under Interest Tax purview. The judgment
upto the ITAT were in favour of the company. However
the department went on appeal to High Court. Now the
appeals filed by the department were admitted in the
court and not yet come up for hearing.

FRN:06906S
Place: Hyderabad
Date : 20.05.2015
329

PARTNER
M.No: 026421
330
//

CONSOLIDATED FINANCIAL STATEMENTS OF ANDHRA BANK
AND ITS SUBSIDIARY/ ASSOCIATE/ JOINT VENTURES
331
/ /
CONSOLIDATED BALANCE SHEET OF ANDHRA BANK AND ITS SUBSIDIARY/ASSOCIATE/JOINT VENTURES
(` ] ) (` in `000)
\ 31.03.2015 31.03.2014
Schedule No.
As on 31.03.2015
As on 31.03.2014
Particulars

SOURCE OF FUNDS
] Capital
1
602,84,68
589,61,49
~ Reserves & Surplus
2
9491,37,63
8171,63,08
] Deposits
3
155051,40,89
141880,32,95
Borrowings
4
15319,31,80
13192,99,18
5
7208,10,27
5565,00,18

TOTAL
187673,05,27
169399,56,88
] APPLICATION OF FUNDS
6
7517,86,98
7912,29,66
\ Balances with
Banks and Money at Call and Short Notice
7
457,27,86
2008,62,28
Investments
8
48564,78,61
46770,98,47
Advances
9
125978,09,50
107664,90,54
\ Fixed Assets
10
1277,56,82
449,80,05
Other Assets
11
3877,45,50
4592,95,88

TOTAL
187673,05,27
169399,56,88
12
55113,15,48
40639,05,15
Bill for Collection
5195,03,02
5294,45,31
17
Notes on Accounts
18
\
The Schedules referred to above form an integral part of Balance Sheet.
.
. .
]

- 000425

- 312063
( ] \)
( )
(.. 070633)
:
: 29.05.2015
(.. 080245)

- 001541

- 006031
( . )
( . ] )
(.. 023819)
(.. 023417)
332
/ /
CONSOLIDATED PROFIT & LOSS ACCOUNT OF ANDHRA BANK AND ITS SUBSIDIARY/ASSOCIATE/JOINT VENTURES
(` ] ) (` in `000)
Particulars
\
31.03.2015 31.03.2014

Schedule No Year Ended 31.03.2015 Year Ended 31.03.2014
INCOME

\ ] Interest Earned
13
16511,56,53
14397,05,19
Other Income
14
2276,36,48
2035,84,75
TOTAL INCOME
18787,93,01
16432,89,94

EXPENDITURE
] Interest Expended
15
11829,92,98
10558,12,78
\ Operating Expenses
16
3653,13,18
3119,47,83
Provisions and Contingencies
2663,16,12
2326,43,20
TOTAL EXPENDITURE
18146,22,28
16004,03,81

Profit before Extraordinary Items and Share of Profit in Associate
641,70,73 428,86,13
Extraordinary Items
-
Share of Profit in the Associate
14,07,13
11,25,13
Consolidated Net Profit for the Year
655,77,86
440,11,26
Consolidated Net Profit brought forward
(24,63,06)
23,92,03

TOTAL
631,14,80
464,03,29
] APPROPRIATIONS
162,42,45
111,14,48
] Transfer to Capital Reserve
76,55,00
2,64,00
] Transfer to Revenue & Other Reserves
40,02,95
103,99,85
Transfer to Special Reserve under IT Act
190,00,00
195,00,00
Proposed / Interim Dividend
120,56,93
64,85,76
Tax on Dividend
24,10,68
11,02,26
] Balance carried over to Balance Sheet

17,46,79
(24,63,06)

TOTAL
631,14,80
464,03,29
17
Notes on Accounts
18
( ) Earnings Per Share (Basic and Diluted) `
11.12
7.75
\ . The Schedules referred to above form an integral part of Profit & Loss Account

S.K. KALRA
Managing Director & Chief Executive Officer
AJIT KUMAR RATH
A. KRISHNAKUMAR
Executive Director
General Manager
Director
Y. Amarnath
As per our report of even date.

FRN:312063E
FRN:000425N
(CA ANJAN BHATTACHARYYA) (CA PREM BEHARI GUPTA)
FOR V. KRISHNAN & CO

FRN:001541S
(CA M. GOPINATH)
PARTNER (M.NO.023819)
Place : Hyderabad
Date : 29.05.2015
333

FRN:006031S
- \
SCHEDULES FORMING PART OF CONSOLIDATED BALANCE SHEET
(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014

As on 31.03.2015
As on 31.03.2014
\ SCHEDULE-1:: ] CAPITAL
I. ] Authorised Capital
10/- ` 300,00,00,000
300,00,00,000 Equity Shares of ` 10/- each
3000,00,00 3000,00,00
II.], , Issued,Subscribed, Called up and Paid up
10/- ` 60,28,46,791 ( 58,96,14,903 )
( 36,78,46,791 )
( 35,46,14,903 )
60,28,46,791 Equity Shares of ` 10/- each (Previous year 58,96,14,903
Equity Shares) [Including 36,78,46,791 Equity Shares (Previous year
35,46,14,903 Equity Shares) held by Central Government]
602,84,68
589,61,49
\ TOTAL SCHEDULE- I
602,84,68
589,61,49
\ SCHEDULE- 2:: RESERVES AND SURPLUS
I. Statutory Reserve
Opening balance
2466,97,62
2355,83,14
162,42,45
111,14,48
Total- I
2629,40,07
2466,97,62
II.] Capital Reserve
A. Revaluation Reserve
Opening balance
-
] (2014-15 )
Addition during the year (Revaluation of property in 2014-15)
1587,89,81
( )
Deduction during the year (Being accumulated depreciation on revalued
875,02,32
portion of property)
Total-II A
712,87,49
B. Other Reserves
Opening balance
367,86,71
365,22,71
76,55,00
2,64,00
Total-II B
444,41,71
367,86,71
Total-II A+B
1157,29,20
367,86,71
III. Share Premium
Opening balance
1987,38,51
1817,41,96
106,76,81
169,96,55
TOTAL - III
2094,15,32 1987,38,51
IV. Revenue and Other Reserves
A. Revenue Reserve
Opening balance
2392,11,47
2551,54,54
40,02,95
103,99,85
/] Less : Deductions/Adjustments
7
263,42,92
Total-IV A
2432,14,35
2392,11,47
334
- \
(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014

As on 31.03.2015
As on 31.03.2014
B. Foreign Currency Translation Reserve
Opening balance
11,91,83
5,61,71
-
6,40,55
- Less : Deductions
10,99,93
10,43
Total-IV B
91,90
11,91,83
C. Special Reserve U/s 36 (1) (viii) of IT ACT
Opening balance
970,00,00
775,00,00
190,00,00
195,00,00
- Less : Deductions
-
Total-IV C
1160,00,00
970,00,00
Total-IV A+B+C
3593,06,25
3374,03,30
V Balance in Profit & Loss Account
174,679
(24,63,06)
\ TOTAL SCHEDULE- 2
9491,37,63
8171,63,08
\ SCHEDULE- 3 :: ] DEPOSITS
I-. ] A. Demand Deposits
i) From Banks
37,77,49
27,09,59
ii) From Others
9673,05,18
7470,70,07
I- Total I-A
9710,82,67
7497,79,66
i) From Banks
ii) From Others
-
32696,33,59
27693,20,24
I- Total I-B
32696,33,59
27693,20,24
i) From Banks
ii) From Others
60,96
112643,63,67
3,05,71
106686,27,34
I- Total I -C
112644,24,63
106689,33,05
Total-I
155051,40,89
141880,32,95
II-. ] A. Deposits of Branches in India
154990,67,11
141811,85,67
II-. ] B. Deposits of Branches Outside India
60,73,78
68,47,28
Total-II
155051,40,89
141880,32,95
155051,40,89
141880,32,95
I-. \ ] B. Saving Bank Deposits
I-. ] C. Term Deposits
335
- \
(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014

As on 31.03.2015
As on 31.03.2014
\ SCHEDULE - 4 :: BORROWINGS
I. Borrowings in India
i) { From Reserve Bank of India
ii) From Other Banks
iii) ] iii) Other Institutions & Agencies
(//\\ - II / )
(Including Subordinated/IPDI/Upper Tier-II Debts/Bonds)
6650,00,00
171,93,82
5559,87,98
6396,00,00
4729,92,43
II. Borrowings outside India

\ TOTAL SCHEDULE- 4
2937,50,00
15319,31,80
2067,06,75
13192,99,18
I. Bills Payable
708,95,35
649,36,04
II. ] () Inter Office Adjustment (Net)

III.\ ] Interest Accrued
-
285,05,05
238,09,41
\ SCHEDULE - 5 ::
OTHER LIABILITIES AND PROVISIONS
IV.
Contingent Provisions Against Standard Assets
1087,50,00
780,50,00
V. Deferred Tax Liability (Net)
411,39,17
384,39,95
VI. ( ) Others (Including Provisions)
4715,20,70
3512,64,78
7208,10,27
5565,00,18
676,07,09
511,80,45
6841,79,89
7400,49,21
\ 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
TOTAL SCHEDULE-6
336
-
7517,86,98
7912,29,66
- \
(` ] ) (` in `000)
Particulars

31.03.2015 31.03.2014

As on 31.03.2015
As on 31.03.2014
\ SCHEDULE - 7 :: \
BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
I. In India
i). Balances with Banks
).\ a) In Current Accounts
60,89,55
157,67,28
). b) In Other Accounts
116,48,44
1393,65,45
Total
177,37,99 1551,32,73
ii) \ Money at Call and Short Notice
) a)With Banks
-
) b) With Other Institutions
-
Total
-
Total - I
177,37,99
1551,32,73
II. Outside India
i).\ In Current Accounts
137,93,39
303,88,32
ii). In Other Deposit Accounts
1,15,15
1,78,69
iii) \ Money at Call and Short Notice
140,81,33
151,62,54
Total - II
279,89,87
457,29,55
457,27,86
2008,62,28
\ SCHEDULE - 8 :: INVESTMENTS
I. Investments in India
i). Government Securities
43305,50,23
40422,58,00
ii). Other Approved Securities
200,19,21
151,10,59
iii). Shares
824,88,40
734,01,88
iv).\ Debentures and Bonds
2101,79,31
3372,27,49
v). / Subsidiaries and/or Joint Ventures
65,34,93
51,27,81
vi).vi). ( ], \ .. )
Others (IDBI Deposits, I.V.Ps,Units of Mutual Funds etc.)
2057,98,30
2034,93,09
Total
48555,70,38
46766,18,86
II. Investments Outside India
i). Government Securities (Including local authorities)
9,08,23
4,79,61
ii). Other Approved Securities
-
iii). Shares
-
iv).\ Debentures and Bonds
-
v). / Subsidiaries and/or Joint Ventures abroad
-
vi). Other Investments
-
Total -II

9,08,23
4,79,61
] Grand Total (I + II)
48564,78,61
46770,98,47
Gross Investments
48785,97,88
47055,11,11
: Less : Depreciation
221,19,27
284,12,64
48564,78,61
46770,98,47
337
- \ SCHEDULES FORMING PART OF CONSOLIDATED BALANCE SHEET
(` ] ) (` in `000)
Particulars

31.03.2015
31.03.2014

As on 31.03.2015
As on 31.03.2014
\ SCHEDULE - 9 :: ADVANCES
I- I-A.Bills Purchased and Discounted
2877,21,51
2541,53,51
I-. ,
I-B.Cash Credits,Overdrafts and Loans (Repayable on demand)
67742,51,66
57195,23,82
I-. I-C.Term Loans
55358,36,33
47928,13,21
Total - I
125978,09,50
107664,90,54
II-. (- )
II-A.Secured By Tangible Assets (Includes Advances against Book Debts)
111578,78,08
96654,15,05
II-. /
II-B.Covered by Bank/Government Guarantees
6315,28,70
4892,16,19
II-. II-C.Unsecured Advances
8084,02,72
6118,59,30
Total - II
125978,09,50
107664,90,54
III-A. III-A. Advances in India
i) Priority Sector
44648,35,51
40647,54,70
ii) ] Public Sector
7366,67,46
6413,20,89
iii) Banks
-
iv) Others
73942,05,33
60584,91,19
Total - IIIA
125957,08,30
107645,66,78
III-B. Advances outside India
21,01,20
19,23,76
Total - III
125978,09,50
107664,90,54
125978,09,50
107664,90,54
\ SCHEDULE - 10 :: \ FIXED ASSETS
A. Tangible Assets
I. Premises
123,65,63
119,34,82
] Additions during the year
1,24,73
4,30,81
Addition on account of Revaluation in original cost
1587,89,81
Deletions/Deductions during the year
-
Depreciation to date (including accumulated depreciation of ` 875,02,32
920,43,64
40,89,75
(previous year ` Nil) on account of revaluation
792,36,53
82,75,88
II. \ Other Fixed Assets
1004,38,48
871,88,54
220,50,89
152,02,11
22,46,15
19,52,17
Depreciation to date
799,93,62
711,87,81
402,49,60
292,50,67
III. ] \ Capital Work in Progress
43,15,86
4,33,29
61,31,52
56,12,12
60,98,79
17,29,55
Value at the end of the year
43,48,59
43,15,86
B. Intangible Assets
I. Computer Software
156,17,36
129,97,84
19,68,52
26,19,52
18,26
/ Depreciation/Amortization to date
139,35,56
127,69,76
WDV at the end of theyear
36,32,06
28,47,60
II. Goodwill
2,90,04
2,90,04
\ Total Schedule - 10
1277,56,82 449,80,05
338
- \
Particulars

31.03.2015
As on 31.03.2015
(` ] ) (` in `000)
31.03.2014
As on 31.03.2014
\ SCHEDULE - 11 :: OTHER ASSETS

I. ] () Inter Office Adjustment (Net)
43,48,30
53,34,14
II. \ ] Interest Accrued
1233,43,28
1265,09,09
III. / ( )
Tax Paid in Advance/Tax Deducted at Source (Net of Provision)
1777,50,03
2193,53,54
IV. Stationery & Stamps
10,72,05
9,90,20
V. () Deferred Tax Asset (Net)
VI. Others
812,31,84
1071,08,91
3877,45,50
4592,95,88
\ SCHEDULE - 12 :: CONTINGENT LIABILITIES
I. ] ] Claims against Bank not acknowledged as debts
40,43,45
270,14,44
136,67,57
71,39,27
II. ] Capital Commitments

III. Options & Derivatives
IV. Outstanding Forward Exhange Contracts
36418,71,21
22094,20,87
) a) In India
10838,85,86
9917,47,08
) b) Outside India
6,20,01
6,75,86
VI. , Acceptances, Endorsements and Other Obligations
5375,02,80
5733,09,06
VII. Letter of Comfort
1367,63,06
1968,22,18
V. Guarantees given on behalf of Constituents (BGs)
VIII. ]- Interest Rate Swaps

IX. Disputed Tax Liability (Net)
752,20,60
536,96,57
Other Items for which Bank is Contingently Liable
177,40,92
40,79,82
55113,15,48
40639,05,15
X. ]
339
- \
SCHEDULES FORMING PART OF CONSOLIDATED PROFIT & LOSS ACCOUNT
(` ] ) (` in `000)
Particulars
31.03.2015
31.03.2014
\ SCHEDULE - 13 :: ] ] INTEREST EARNED

I. / ]/ Interest/Discount on Advances/ Bills
12743,39,96
11114,34,46
II. Income on Investments
3643,81,72
3101,59,28
III. ] -
Interest on balances with Reserve Bank of India and
Other Inter Bank Funds
57,68,25
80,53,07
IV. Others
66,66,60
100,58,38
16511,56,53 14397,05,19
\ SCHEDULE - 14 :: OTHER INCOME

I. , ] Commission, Exchange and Brokerage
331,08,82
262,84,00
II. / Profit/(Loss) on Sale of Investments
556,83,99
474,00,53
7,57,47
8,34,47
27,82
60,42
183,48,22
88,82,87
5,28,80
5,59,29
VII. Insurance Premium
606,77,09
639,84,91
VIII. Miscellaneous Income
585,04,27
555,78,26
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
2276,36,48 2035,84,75
340
- \
SCHEDULES FORMING PART OF CONSOLIDATED PROFIT AND LOSS ACCOUNT
(` ] ) (` in `000)
Particulars
31.03.2015 31.03.2014
\ SCHEDULE - 15 :: ] INTEREST EXPENDED

I. ] ] Interest on Deposits
10910,57,11
9847,42,98
II. / ]
Interest on Reserve Bank of India/Inter Bank Borrowings
612,03,21
431,48,21
III. Others
307,32,66
279,21,59
11829,92,98
10558,12,78
\ SCHEDULE - 16 :: \ OPERATING EXPENSES
I. \ Payment to and Provisions for Employees
1730,90,72
1420,72,05
221,06,29
182,05,49
III Printing and Stationery
29,38,55
25,18,81
VI. \ Advertisement and Publicity
21,62,77
23,96,56
123,57,84
95,19,49
79,86
81,56
20,44,71
21,02,93
7,78,15
14,11,34
41,14,79
38,35,93
X. - Repair and Maintenance
101,24,59
98,37,56
XI. Insurance
145,28,58
134,58,21
XII. Benefits Paid relating to insurance activity
850,68,54
733,66,24
XIII. Other Expenditures
359,17,79
331,41,66
3653,13,18
3119,47,83
II. , ] Rent, Taxes and Lighting
V. Depreciation on Banks Property

VI. , Dirctors Fees, Allowances and Expenses
VII. ( )
Auditors Fees and Expenses (Including Branch Auditors fees and expenses)
VIII Law Charges
IX. , Postages, Telephones etc.
341
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3. LIFE INSURANCE:
a. Premium is recognized as income when due from
policyholders. For unit linked business, premium
income is recognized when the associated unit is
created. Premium on lapsed policies is recognized as
income when such policies are reinstated.
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
is recognized in the year in which they occur.
c. Acquisition cost is expensed in the period in which
they are incurred. Acquisition costs mainly consist
of commission to insurance intermediaries, medical
costs, policy printing expenses, stamp duty and other
related expenses to source and issue the policy.
4. REVENUE RECOGNITION:
4.1 Income and Expenditure are generally recognised on
accrual basis, except the following;
i. Interest on non-performing advances and non
performing investments is recognized based on
realisation as per prudential norms laid down by
Reserve Bank of India, in view of uncertainties of
collection of income in such cases.
ii. Income by way of commission, exchange, brokerage,
fee, interest on overdue bills, and rent on lockers are
accounted for on realisation.
iii. Dividend is accounted on accrual basis when the right
to receive the same is established.
iv. 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.
4.2 Partial recoveries in non performing advances are
appropriated in the following order of priority.
i. Expenditure/out of pocket expenses incurred for
recovery.
ii. Interest irregularities/accrued interest.
iii. Principal irregularities i.e., Principal outstanding in the
account
4.3 In case of non performing advances involving
compromise settlements in which case the recoveries
are first adjusted towards principal.
5. FOREIGN EXCHANGE TRANSACTIONS:
5.1 Income and Expenditure items are recorded at the
exchange rates prevailing on the date of transaction.
5.2 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.
5.3 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.
5.4 Foreign Letters of Credit/Letters of Comfort and Letters
of Guarantee are recorded at the rates prevailing on the
SCHEDULE - 17 : SIGNIFICANT ACCOUNTING POLICIES

FOR THE YEAR 2014-15 CONSOLIDATED
1. GENERAL
1.1 Basis of preparation: 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 in
all material aspects to Generally Accepted Accounting
Principles in India which comprise of applicable
statutory provisions, regulatory norms/ guidelines
prescribed by the Reserve Bank of India (RBI),
Banking Regulation Act, 1949, Accounting Standards,
Guidance Notes issued by the Institute of Chartered
Accountants of India (ICAI) and practices prevailing in
the banking industry in India.
1.2 Use of estimates :The preparation of financial
statements requires the management to make
estimates and assumptions considered in the reported
amount of assets and liabilities (including contingent
liabilities) as of the date of the financial statements and
the reported income and expenses for the reporting
period. Management believes that the estimates used
in the financial statements are prudent and reasonable.
Future results could differ from these estimates. Any
revision in the accounting estimates is recognized
prospectively in the current and future periods.
2. BASIS OF CONSOLIDATION:
2.1 Consolidated financial statements of the Group
(comprising of 1 subsidiary, 1 associate and 3 joint
ventures) have been prepared on the basis of:
i.
Audited accounts of Andhra Bank (parent).
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).
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).
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).
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.
2.2 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.
343
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date of entering into such commitment. Outstanding
items are restated at the rates notified by FEDAI as at
the close of the financial year.
5.5 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.
6. INVESTMENTS:
6.1 Investments are classified and shown in Balance
Sheet under the following six heads:
i.
Government Securities
ii. Other Approved Securities
iii. Shares
iv. Debentures and Bonds
v. Subsidiaries / Joint Ventures /Associates and
vi. Others.
6.2 Investments are further classified into the
following three categories:
i.
Held to Maturity (HTM)
ii. Available for Sale (AFS)
iii. Held for Trading (HFT)
6.3 Basis of classification
i.
Held to Maturity category comprises of securities
acquired with the intention to hold them up to maturity.
ii. Held for Trading category comprises of securities
acquired with the intention of trading.
iii. Available for Sale securities are those which are not
classified under either of the above two categories.
iv. Investments in Subsidiaries/Joint ventures/Associates
are classified as Held to Maturity.
v. An investment is classified as HTM, HFT or AFS at the
time of its purchase and subsequent shifting amongst
categories is done in conformity with the guidelines
issued by Reserve Bank of India.
6.4 Valuation:

In determining the acquisition cost of an investment
i. Brokerage/commission received on subscriptions is
reduced from the cost of Investments. The incentives
received after the sale of securities is credited to Profit
and Loss Account.
ii. Brokerage, commission, securities transaction tax
and stamp duty paid in connection with acquisition of
investments are treated as revenue expenditure.
iii. Broken period interest paid/received on debt
instruments is treated as interest expense/income and
is excluded from cost/sale consideration.
iv. Cost is determined on the weighted average cost
method for all the categories of investments.

The Investments are valued in accordance with
guidelines issued by Reserve Bank of India on the
following basis:-
i.
a.
Held to Maturity:
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
amortised over the remaining period of maturity. Such
amortization of premium is adjusted against income
under the head Interest on Investments
b. Investments in subsidiaries, joint ventures and
associates (both in India and abroad) are valued at
historical cost
c. 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. The net depreciation under each of the five heads
(other than investment in Subsidiaries / Joint Ventures
/Associates) 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.
b. The net depreciation under each of the five heads
(other than investment in Subsidiaries / Joint Ventures
/Associates) 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.
6.5 Prudential Norms:
i.
The identification of non performing investments and
provisions made thereon is as per Reserve Bank of
India guidelines.
ii. Accounting for Repo/Reverse Repo transactions:

The securities sold and purchased under Repo/
Reverse repo are accounted as Collateralized lending
and borrowing transactions. However, securities
are transferred as in the case of normal outright
sale/ purchase transactions and such movement of
securities is reflected using the Repo/Reverse Repo
Accounts and Contra entries. The above entries are
reversed on the date of maturity. Costs and revenues
are accounted as interest expenditure/income, as the
case may be. Balance in Repo A/c is classified under
schedule 4 (Borrowings) and balance in Reverse Repo
A/c is classified under schedule 8 (Investments).
345
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6.6 Profit / Loss on Sale of Investments:
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.
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).
iv. Loss on sale of investments in all the three categories
is recognized in Profit and Loss Account.
6.7 General
i. Purchase and sale transactions in Government and
other than 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.
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 amortised cost.

After transfer in both the above cases, these securities
are immediately re-valued and resultant depreciation,
if any, is provided.
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. INTEREST RATE SWAPS:
7.1 Interest Rate Swaps: (Hedging)
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. 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.
7.2 Interest Rate Swaps: (Trading)
i.
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;
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.
8. ADVANCES :
8.1 Loans and Advances are classified as performing and
non-performing, based on the guidelines issued by the
Reserve Bank of India.
8.2 Borrower-wise advances are classified into Standard,
Sub-Standard, Doubtful and Loss Assets.
8.3 Provisions are made for NPAs as per the extant
guidelines prescribed by Reserve Bank of India and
additional provision as assessed.
8.4 Advances stated in the Balance Sheet are net of
specific loan loss provisions.
8.5 For restructured/rescheduled assets, provisions are
made in accordance with the guidelines issued by the
RBI, which require that the difference between the
fair value of the loan before and after restructuring
is provided for. The Provision for Diminution in Fair
Value (DFV) is reduced from advances.
8.6 In the case of loan accounts classified as NPAs,
account may be reclassified as a performing asset
if it conforms to the guidelines prescribed by the
regulators.
8.7 Amounts recovered against debts written off in earlier
years are recognized as revenue in the year of
recovery.
8.8 General provisions are also made for standard assets
as per extant RBI Guidelines. These provisions are
reflected in Schedule 5 of the Balance Sheet under
the head Other Liabilities and Provisions and are not
considered for arriving at Net NPAs.
9. FIXED ASSETS :
9.1 PARENT:
9.1.1 Fixed Assets are stated at historical cost except Land/
premises, which have been revalued. The revalued
amounts of fixed assets are presented by restating both
the gross book value and accumulated depreciation so
as to give a net book value equal to the net revalued
amount. The appreciation on revaluation is credited
to revaluation reserve and incremental depreciation,
if any attributable to the revalued amount is deducted
there from.
9.1.2 Depreciation
i. Depreciation on Premises and on other Fixed Assets,
347

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25.89%
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1961
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11.3. 1961
] 22

except computers and ATMs, is provided on WDV
method at the following rates considered appropriate
by the Management.
ii.
Premises- Freehold
Furniture & Fixture
Electricals, Electronics andOffice Equipments
Motor Vehicles
the scheme together with a matching contribution

for the Bank. Pending completion of registration
procedures of the employees concerned, these
contributions are retained with the Bank. The Bank
recognizes such annual contributions in the year to
which they relate. Upon receipt of the Permanent
Retirement Account Number (PRAN), the
consolidated contribution amounts are transferred
to the NPS Trust.
ii.
Defined Benefit Plans
a. Gratuity:

The Employees Gratuity Fund Scheme is funded
by the Bank and managed by a separate trust who
in turn manages 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.
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.
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 amortized equally over a
period of five years beginning with the financial
year 2010-11.
iii.
Other Long Term Employee Benefits:
a.
All eligible employees of the Bank are entitled to be
compensated for absences, silver jubilee award,
leave travel concession, retirement award and
resettlement allowance. The costs of such long
term employee benefits are internally funded by the
Bank.
b.
The cost of providing other long term benefits is
determined using the projected unit credit method
with actuarial valuations being carried out at
each balance sheet date. Past service cost is
immediately recognized in the statement of profit
and loss and is not deferred.
11.
TAXES ON INCOME :
11.1
Income tax expense is the aggregate amount of :
i.
Current tax provision and
ii.
Deferred tax charge.
11.2 Current tax provision is the amount of tax for the
period which is determined in accordance with the
provisions of Income Tax Act, 1961 and the rules
made there under.
11.3 Deferred tax charge is determined in accordance
with the provisions of Income Tax Act, 1961 and as
5.00%
18.10%
13.91%
25.89%
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.
9.1.3 Amortisation
i.
Premium wherever is paid for acquisition of
leasehold land, such premium along with cost of
the buildings constructed thereon is amortised over
the period of lease.
ii.
Depreciation has been charged on composite cost
of Land and Building, where separate cost of Land
is not available.
iii.
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.
Other software acquired is charged off in the year
of acquisition.
9.2
SUBSIDIARY:
9.2.1 Fixed Assets:

All Fixed Assets including assets given on lease
are valued at Cost.
9.2.2 Depreciation:
9.2.2.1 Assets for Own Use:

Depreciation is provided on Straight Line method
on the basis of useful life and carrying cost in
accordance with Schedule-II of the Companies Act,
2013.
9.2.2.2 Assets leased out:

Since the residual value is Rs. 1/- no depreciation
has been provided on the Assets Leased out.

The machinery under lease to M/s. Incab Industries
Ltd is not put to use during this year also.
10.
EMPLOYEES BENEFITS:
10.1 Short Term Employee Benefits:

The undiscounted amounts of short-term employee
benefits, such as medical benefits which are
expected to be paid in exchange for the services
rendered by employees, are recognized during the
period when the employee renders the services.
10.2 Long Term Employee Benefits:
i.
Defined Contribution Plans:

The Bank operates a new pension scheme (NPS)
for all officers/ employees joining the Bank on or
after 1st April, 2010, which is a defined contribution
plan, such new joinees not being entitled to become
members of the existing Pension Scheme. As per
the scheme, the covered employees contribute
10% of their basic pay plus dearness allowance to
349
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vi) .

per Accounting Standard 22 Accounting for Taxes
on Income issued by the Institute of Chartered
Accountants of India and is the net change in
the deferred tax asset or liability during the year.
Deferred income taxes reflect the impact of current
year timing differences between taxable income
and accounting income and reversal of timing
differences of earlier years.
11.4 Deferred tax is measured based on the tax rates
and the tax laws enacted or substantively enacted
at the Balance Sheet date.
11.5 Deferred tax assets are not recognized unless
there is reasonable certainty that sufficient future
taxable income will be available against which such
deferred tax assets will be realized.
11.6 Deferred tax assets are recognised and
reassessed at each reporting date, based upon the
managements judgment as to whether realisation
is considered as reasonably/virtually certain.
11.7 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.
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.
13.
Provisions, Contingent Liabilities and
Contingent Assets;
13.1 In conformity with AS.29 Provisions, Contingent
Liabilities and Contingent Assets issued by the
Institute of Chartered Accountants of India, the
Bank recognises provisions only when :
i.
It has a present obligation as a result of a past

event.
ii.
It is probable that an outflow of resources
settle the obligation, and
iii.
When a reliable estimate of the amount of the
obligation can be made.
13.2 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
ii.
any present obligation that arises from past events
but is not recognized because
a.
It is not probable that an outflow of resources
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 for, except in the extremely
rare circumstances where no reliable estimate can
be made.
13.3 Contingent Assets are not recognized in the
14.
NET PROFIT:

The Net Profit disclosed in the Profit and Loss
Account is after:
i.
Provision for depreciation on Investments.

ii.
Provision for Taxation.

iii.
Provision on loan losses

iv.
Provision on Standard Assets.

v.
Provision for non-performing investments

vi.
Other usual and necessary provisions.
351
\- 18
-2014-15
. / / \, ]

1
, 1 3 (] ,
, )
\.
` ,
] , ] .5 ,
]
.

] .5
]
) :
].
.

.
(%) ] 23
1
100.00
( ) \
) :
] 35%
1 \

35.00
{ ]
) :
`
1
30.00
.62.74 (48.67 )
2 ()

26.02
]
3 () \ 25.00
.
,
() , ]
, / , , \
,

{ , 1965 ,
( )
()
.
(-21), `
( -23), ` ( -27)

() ]
{
]
, - /
/ , , , ]
] -- ]
. , ] ,
]
. , 3 \
, ]

]
352
31 \, 2015 , -

^.
(i) , ()
() \
27 , `
]
-
\
(ii)

(iii) () \ ,
] \ , 31 2014
, ()

(iv) \
]
`

(v) 31 \ 2015 ()
\,
, ]
,

SCHEDULE 18:
expenses, after eliminating material intra group balances /

transactions and resulting unrealized profit / loss.
NOTES ON ACCOUNTS TO CONSOLIDATED FINANCIAL

STATEMENTS : 2014-15
D. The financial statements of subsidiary, are adjusted,

wherever necessary, to conform to the accounting policies
of the Bank.
A. List of Subsidiary/Associate/Joint Ventures considered

for preparation of consolidated financial statements:
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.
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.No. Entity

Country of Groups
Incorporation Stake (%)
1 Andhra 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
100.00

Financial Services

Limited
b) Associate:
1

Chaitanya Godavari
Grameena Bank
c)
Joint Ventures:
1
India First Life
Insurance Company

Limited
2
ASREC (India) Limited
3
India International
Bank(Malaysia) BHD
India
35.00
G.Accounting for investment in RRB:

India
30.00
India
26.02
Malaysia
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 ` 62.74 crore (` 48.67 crore). The RRB
is duly audited by other auditort for the year ending on 31st
March 2015.
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.
C. Consolidation Procedure:
(ii) Joint Ventures have been duly audited by their

respective auditors.
The Consolidated Financial Statements are prepared

in accordance with the Accounting Standards (AS-21)
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
(iii) Financial statements of India International Bank

(Malaysia) BHD which are considered for incorporation
pertains to the year ended 31st December, 2014 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
353

(v)31 \ 2015
() \,
, ]
,

\
]
3
60.74

5
6.23

6
0.34

7
172.26
\

9
21.01
\
10
4.32

11
0.35

12
27.68
] ]
13
7.75

14
0.62
\ ]
15
1.99
\
16
6.23
/()
(0.94)
.
2014-15 2013-14
. ] ]

i ) -I
- II
-III -II -III
7.55
8.03
] (%)
ii) I ]
0.50
0.13
(%)
(iii) I ] (%)
8.05 8.30 8.16
(iv) II ] (%)
2.65 2.93 2.70
(v) ]
10.70 11.23 10.86
()(%)
(vi)
61.02
60.14

(vii) ] 120.00** 200.00*
(. )
(viii) - -- --
354
. ]
( .10/- )
] 11.12 7.75
( ) ()

(. ) 655.78
( ) 58.99
] ()
11.12
440.11
56.79
7.75
(*) 21.12.2013 66.59 . (56.59

) 10/-
(]) 300, 34,539

(**) 25.03.2015 80.69
) (]) .10/ 1,32,31,888 90.69
] 119,99,99,922.72
. \ -

(. )

31.03.2015
31.03.2014
()
2.90
2.90
\
2.90
2.90
. (
\ )
2010-11 , {
.. . . 80/21.04.018/2010-11
09 2011 \
\ \ \
.3.50 .10.00
31
\ 2014 .126.67 .93.67
, ] 1/5 .33 , ]
\ 1/5 , \
.93.67
.33.00 ]
1 2012
.140.54 (.99.75 )


balance of fixed assets in overseas joint venture at the

applicable exchange rate has been treated as Foreign
Currency Translation Reserve.
B. Earnings per share

(face value of `10/each)
(v) The following Items in consolidated financial statements

as on 31.03.2015 pertain to India International Bank
(Malaysia) BHD which are based on a different
accounting policy i.e., Malaysian Financial Reporting
Standards, International Financial Reporting Standards
Earnings per Share

(Basic and diluted) (`)
Calculation of Basic EPS
Net Profit (In ` crore)
11.12
7.75
655.78
440.11
Weighted Average No
58.99
56.79
11.12
7.75
of Shares (in crore)

Basic Earnings per Share (`)
Particulars
Schedule
Amount in `
(*) The Bank has allotted 300,34,539 equity shares on

Crore
preferential basis to Government of India (GOI) of face
Deposits
3
60.74
value of ` 10/- each for cash @ ` 66.59 per share (including
Other Liabilities
5
6.23
premium of ` 56.59 per share) on 21.12.2013.
Cash
6
0.34
(**)The Bank has allotted 1,32,31,888 equity shares of ` 10/-
Balances With Banks

& Money At Call &
Short Notice
Advances
172.26
21.01
Fixed Assets
10
4.32
Other Assets
11
0.35
Contingent Liability
12
27.68
each for cash at ` 90.69 per share (including a premium of

` 80.69 per share) on preferential basis to Government of
India (GOI) on 25.03.2015, amounting to ` 119,99,99,922.72.
J. The breakup of Goodwill arising on the acquisition of
Joint Venture is as under:
(` in crore)
Name of the Joint Venture 31.03.2015
31.03.2014
Interest Earned
13
7.75
ASREC (India) Limited
2.90
2.90
Other Income
14
0.62
Net Goodwill
2.90
2.90
Interest Expended
15
1.99
Operating Expenses
16
6.23
(0.94)
Profit/(Loss)
I. Additional disclosures for consolidated financial

statements are as under:
A. Capital to Risk
Adequacy Ratio
(i)Common Equity
2014-15
2013-14
BASEL II BASEL-III BASEL -II BASEL-III

NA
7.55
NA
8.03
NA
0.50
NA
0.13
(iii) Tier I Capital Ratio
NA
8.05
8.30
8.16
(iv)Tier II Capital Ratio (%)
NA
2.65
2.93
2.70
(v) Total Capital Ratio
NA
10.70
11.23
10.86
Tier 1 Capital Ratio (%)

(ii) Additional Tier I
Capital Ratio (%)
K. Prudential Regulatory treatment (reopening of Pension

option and enhancement of gratuity)
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 aggregate carried forward
amount of ` 126.67 crore as on 31st March 2014, an amount
of ` 93.67 crore being 1/5th of the additional pension liability
and ` 33 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.
(CRAR) (%)
(vi)Percentage of the
61.02
60.14
shareholding of the
Government of India
(vii) Amount of equity
120.00**
Provision of ` 140.54 crore (` 99.75 crore) has been made

towards wage revision arrears effective from 1st November,
2012 pending wage settlement.
200.00*
capital raised (` in crore)

(viii) Amount of
subordinated debt
raised by
Andhra Bank as
Tier-II capital during
the year -- --
355
.
(` )

..
31.03.2015

1 ]

() ]
4079.85
() /
6701.97
()
5362.29
() \
2643.82

18787.93
- ]
-
\
18787.93
2

() ]
753.12
() /
1237.15
()
989.85
()
338.82

3318.94
(i) 2081.59

1237.35

581.57

655.78
3
() ]
51765.68
() /
85945.06
()
43691.28
() \
3215.96
()
3055.07

187673.05
4
() ]
50271.62
() /
83495.48
()
41602.47
() \
2091.92
()
117.34

177578.83
]
10094.22

187673.05
- ,
],
() \ 25%
( - )
[. ( 22)
31.03.2015
(. )

31.03.2014
3680.66
6268.65
4676.08
1807.51
16432.90
16432.90
31 \ -2015
31 \ -2014
(i) , ]
0.34
50.98
(ii) 0.63
0.43
(iii) 0.02
0.03
3.64
5.32
43.05
394.28
329.70
(vii) \
14.45
57.76
(viii)
0.01
0.01
0.99
412.38
51.44
435.84
(iv) , 1961 -
/
(v)
\
649.99
1107.03
825.78
183.74
2766.54
2026.88
739.66
299.55
440.11

(vi) 36(1) (viii)

.
(. )
2014-15 2013-14

-
(i)
-27.94 188.66
(ii) ]
1734.03 1477.17
(iii)
307.00 197.00
(iv)
554.58 232.55
(v)
26.99 67.00
(v) :
)
-93.78 50.00
)
162.28 114.05

2663.16 2326.43
51759.21
71969.91
41032.35
1994.77
2643.33
169399.57
50601.95
69737.84
39163.18
1048.52
86.83
160638.32
8761.25
169399.57
\ / , 3
, .9491.38 , ]
.9461.24 .30.14 ,
3 ( .8171.63 ] .
8147.84 .23.79 ,
)
. -
\ \
() ]
, ] , \
356

L. Consolidated Segments Report:

(` in crore)
Part A
Year ended
S. Business Segments
31.03.2015 31.03.2014
No.
1 Segment Revenue

(a) Treasury
4079.85 3680.66

(b) Corporate/
6701.97 6268.65

Wholesale Banking

(c) Retail Banking
5362.29 4676.08

(d) Other Banking
2643.82 1807.51
Operations

Total
18787.93 16432.90

Less: Inter Segment

-
Revenue

Income from Operations
18787.93 16432.90
2 Segment Results

(a) Treasury
753.12
649.99

(b) Corporate/Wholesale
1237.15 1107.03
Banking

(c) Retail Banking
989.85
825.78

(d) Other Banking
338.82
183.74
Operations

Total
3318.94 2766.54

Less :(i) Other
2081.59 2026.88

Un-allocable Expenditure

Total Profit Before Tax
1237.35
739.66

Income tax and other
581.57
299.55

taxes paid

Net Profit
655.78
440.11
3 Segment Assets

(a) Treasury
51765.68 51759.21

85945.06 71969.91
Banking

(c) Retail Banking
43691.28 41032.35

(d) Other Banking Business
3215.96 1994.77

(e) Unallocable Assets
3055.07 2643.33

Total Assets
187673.05 169399.57
4 Segment Liabilities

(a) Treasury
50271.62 50601.95

83495.48 69737.84
Banking

(c) Retail Banking
41602.47 39163.18

(d) Other Banking
2091.92 1048.52
Operations

(e) Unallocable Liabilities
117.34
86.83

Total
177578.83 160638.32

Capital & Reserves
10094.22 8761.25

Total Liabilities
187673.05 169399.57
Part B: Geographic Segments: There is only one segment

- Domestic Segment. However, the consolidated statement
includes the figures of Joint Venture incorporated in Malaysia
viz. India International Bank (Malaysia) BHD to the extent
of 25%.
(Compiled by the Management and relied upon by the
Auditors)
M. Accounting for taxes on income (AS 22):
The major components as on 31.03.2015 are as follows:

(` in Crore)
Timing Difference
DTA
(i) Provision created in
DTL
DTA
DTL
0.34
50.98
0.63
0.43
0.02
0.03
3.64
5.32
43.05
books but not claimed

as deduction
(ii) Provision for
Impairment of Investments
(iii)Provision for Expenses
(iv)Excess/Less
Depreciation claimed
as per Income Tax Act, 1961
(v) On account of
amortization of
additional liability due
to re-opening of pension
option and revision in
ceiling of gratuity
(vi) On account of Special
- 394.28
- 329.70
14.45
57.76
0.01
0.01
Reserve created under

section 36 (1)(viii) of the Act
(vii) On account of pension
and gratuity fund contributed
(viii) Other items
Total
0.99 412.38
51.44 435.84
N.Provisions and Contingencies:

Breakup of Provisions and
Contingencies shown under
the head Expenditure in
(` in Crore)
2014-15
2013-14
-27.94
188.66
Profit and Loss Account

(i) Depreciation in value of
Investments
(ii) Non Performing Assets
1734.03
1477.17
(iii) Standard Assets
307.00
197.00
(iv) Taxes
554.58
232.55
26.99
67.00
(v) Deferred Tax

(vi) Other provisions and
Contingencies
a) Restructured advances
-93.78
50.00
b) Other provisions
162.28
114.05
2663.16
2326.43
Total
357

. (),
() , 09.01.1997
] 1934 56 ]
] 28.01.2005
() ]
,
09.01.2008 ] ] ]
05.12.2008
358
] 1. \
2. ] ]

. ] \
//

The consolidated Reserves of the group after reckoning
parents share of accumulated profit / loss of Subsidiary,
Associate and 3 Joint Ventures amount to ` 9491.38 crore
of which ` 9461.24 crore relate to parent and the balance
` 30.14 crore relates to Subsidiary, Associate and 3 Joint
Ventures (Previous year ` 8171.63 crore of which ` 8147.84
crore relate to the parent and the balance ` 23.79 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
view of the general clarification issued by the Institute of
Chartered Accountants of India (ICAI)
P. The company Andhra Bank Financial Services Limited

(ABFSL), wholly owned subsidiary of Andhra Bank
(Parent), was incorporated on 09.01.1997. It applied for
obtaining registration under Section 56 IA of the Reserve
Bank of India Act, 1934. The RBI rejected the application
for certificate of registration as a Non-Banking Financial
Company (NBFC) on 28.01.2005.

Thereafter, the company approached the RBI on
09.01.2008 to treat it as a Non-Banking Non-Financial
Institution, which was only noted by RBI on 05.12.2008.

As per the directives of RBI

1. The company has disposed of all its financial assets.

2. The Board of Directors of the company has passed a
resolution for non-acceptance of any public deposit.
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.
359
31 \, 2015
31.03.2015
(` in 000)
31.03.2014

9920,91,94
7106,38,71

7975,14,84
9920,91,94

/ (1945,77,10) 28,145,323
\

1225,85,30
745,65,50
] 123,57,84
95,19,49
] - ]
919,35,87
710,69,80

27,82
60,42
\ \
2268,51,19 1550,94,37
\ ]
] / ()
13171,07,94
18083,87,69
() /
(1793,80,14)
(8394,97,53)
() /
(18313,18,96)
(9291,60,44)
() /
6,218,089
(800,41,31)
/ () 1471,43,26
1378,96,78
\ ]
(2574,15,82) 25,267,956

(460,88,48)
(643,37,11)
\ ()
(3035,04,30) 18,834,245

\ () /
(237,69,55)
(222,18,80)
(237,69,55) (222,18,80)
()

]
120,00,00
200,00,00
/ ()
2126,32,62
2067,21,45
]
(919,35,87)
(710,69,80)
( )
-
(403,22,07)
()
13,269,675
11,532,958
/ ()+()+ ( )
(1945,77,10) 28,145,323
. .

- 000425
(.. 070633)
(.. 080245)

- 312063
( ] \)
:
: 29.05.2015
( )
360

- 001541

- 006031
( . )
( . ] )
(.. 023819)
(.. 023417)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2015
(` in 000s)
Particulars
For the year ended For the year ended

31.03.2015
31.03.2014
Opening balance of Cash and Cash equivalents
9920,91,94
7106,38,71
Closing balance of Cash and Cash equivalents
7975,14,84
9920,91,94
(1945,77,10)
2814,53,23
Net Increase(+) / Decrease (-) of Cash and Cash equivalents

during the period
Cash Flow from Operating Activities:

Net Profit before tax
1225,85,30

745,65,50
Add: Depreciation on Assets
123,57,84 95,19,49
Add: Interest paid on Subordinated Debt & Others
919,35,87
710,69,80
27,82
60,42
2268,51,19
1550,94,37
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
13171,07,94
18083,87,69
(Increase) / Decrease in Investments
(1793,80,14)
(8394,97,53)
(18313,18,96)
(9291,60,44)
621,80,89
(800,41,31)
(Increase) / Decrease in Advances

(Increase) / Decrease in Other Assets
Increase / (Decrease) in Other Liabilities and Provisions
Cash Generated from Operations
Taxes Paid
Cash Flow from Operating Activities (A)
1471,43,26
1378,96,78
(2574,15,82)
2526,79,56
(460,88,48)
(643,37,11)
(3035,04,30)
1883,42,45
Cash Flow from Investing Activities:

(Purchase) / Sale of Fixed assets
(237,69,55)
(222,18,80)
Cash Flow from Investing Activities (B)
(237,69,55)
(222,18,80)
Cash Flow from Financing Activities:

Equity Capital including Premium
120,00,00
200,00,00
Increase / (Decrease) in Borrowings
2126,32,62
2067,21,45
Interest paid on Subordinated Debt & Others
(919,35,87)
(710,69,80)
Dividend paid (including tax on dividend)
Cash Flow from Financing Activities (C)

Net Increase (+) / Decrease (-) in Cash flow during the period (A)+(B)+(C)
S.K.KALRA
Managing Director & Chief Executive Officer
(403,22,07)
1326,96,75
1153,29,58
(1945,77,10)
2814,53,23
AJIT KUMAR RATH

Executive Director
A. KRISHNAKUMAR
Director
Y. AMARNATH
General Manager
FRN:312063E

FRN:000425N


Place: Hyderabad
Date: 29-05-2015
361

FRN:001541S
(CA M. GOPINATH)

FRN:006031S

,

1. ,
() ]
31 \ 2015

]
\
i. 27.04.2015

ii. 1() , 1()
3()

\

2. , 1949
] ,

\,

3.

]

\
]

4.
]\
\

]
362
]

\
\
\

5. ] ,
\
6.
] 31 \ 2015 1,85,170
17,868 ]
1,777
7. ,
] 31 \ 2015
2,503 920
]

8.
21-
, () 23 -

27 - ]
]

9. , ]
]
(i) , \
\
31 \
2015 ,
\ ]

31 \ 2015
]
(ii)

,
;

INDEPENDENT AUDITORS REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS
To
The Board of Directors,
Andhra Bank.
Report on the Financial Statements
1. We have audited the accompanying Consolidated
Financial Statements of Andhra Bank, its Subsidiary,
Associate and Joint Ventures (the Group), which comprise
the Consolidated Balance Sheet as at 31st March, 2015,
and the Consolidated Profit and Loss account and the
Consolidated Cash Flow statement for the year ended on
that date annexed thereto, and a summary of Significant
Accounting Policies and other explanatory information, in
which are incorporated:
i) Audited accounts of the Andhra Bank (the Bank),
audited by us, vide our audit report dated 27.04.2015;
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.
5. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
6. We have jointly audited the financial statements of the
Bank, whose financial statements reflect total assets of
` 1,85,170 Crores as on 31st March 2015, and total revenue
of ` 17,868 Crores and net cash outflows amounting to
` 1,777 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 ` 2,503 Crores as on 31st March,
2015, and total revenue of ` 920 Crores for the year then
ended. These financial statements have been furnished to
us, and our opinion, is based solely on the reports of 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 (AS) 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 as per 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, 2015 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.
363
(iii)
\

10.
, 1949 \

11. 1 8

- 312063
:
: 29.05.2015
( ) , 1980

\
() \ ]
]
]
() ,

- 000425
( ] \)
( )
(.. 070633)
(.. 080245)

- 001541

- 006031
( . )
( . ] )
(.. 023819)
(.. 023417)
364

11.
Subject to the limitations of the audit indicated in
paragraph 1 to 8 above and as required by the Banking
Act, 1980, and subject also to the limitations of disclosure
required therein, we report that:
belief, were necessary for the purposes of our audit

and have found them to be satisfactory.
(b) In our opinion, the Consolidated Balance Sheet,
Consolidated Profit and Loss Account and
Consolidated Cash Flow Statement comply with the
applicable accounting standards, prescribed by The
Institute of Chartered Accountants of India.
(a)
We have obtained all the information and
explanations which to the best of our knowledge and

FRN-312063E
For PREM GUPTA & CO.

FRN-000425N

(CA PREM bEHARI gUPTA)


FRN:006031S
FRN:001541S
(CA M. GOPINATH)

Place: Hyderabad
Date: 29.05.2015
365
366
( )
. , 5-9-11, , -500 004.

( ] )
, 08 ], 2015
_____________
] ____________________

_____________
/ __________________________________________ ______________________________________ ]
_______________________________] ______________________________
/ ______________________________ _____________________________ ] __________________
.......................] , 08 ], 2015 11.00 ] , 8-3-987/2,
, - 500 073 / / (
) / / .
. 1/ ]

/

..........................................

( )

...........................................
......................................................... .......................................................
]
i) ] ,
)
) ] ] .
) .
ii) , ] ,
, , ] ] ]
]
iii)
) ( ) ] ,
) ] , , , , , . , 5-9-11,
, 500 004 \ , 03 ] 2015
5.00 ] ] ].
iv) ] .
v) ] .
vi) ] ].
vii) ] .
viii) ] \ ].
ix) ] - , ]
- ]
367
( )

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)
FIFTEENTH ANNUAL GENERAL MEETING, 08th July, 2015
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 Fifteenth Annual General Meeting of the Shareholders of
Andhra Bank to be held on Wednesday, 08th July, 2015 at 11.00 am 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)

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;
ii) 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.
iii) 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., 5.00 P.M. Friday, 03rd July,
2015.
iv) No instrument of proxy shall be valid unless it is duly stamped.
v) An instrument of Proxy deposited with the Bank shall be irrevocable and final.
vi) In case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.
vii) 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.
viii) No person shall be appointed as duly authorised representative or a proxy who is an officer or an employee of Andhra Bank.
ix) Members who have casted their votes through remote e-voting, will not be allowed to vote again at the General Meeting.
368
( )
: , 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)
: 08 ], 2015
Date
: 08th July, 2015

: 11.00 ]
Time
: 11.00 A.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.
369
NOTES
370
General Managers
Sri S V Venkatasubramanian
Sri Madan Mohan Tyagi

Sri R S Vidya Sagar
Sri P R K Murthy
Sri M S Chalapati Rao
Sri R Padmanabhan
Sri P S Subba Rao
Sri V B Bhagavathi
Sri T Venkaiah
Sri V M Parthasarathi
Sri G Ravi Kumar
Sri D Durga Prasad
371
Sri D Kishan Prasad
Sri C Balasubrahmanyam
Sri Ashwani Kumar Mittal
Sri V Satyanarayanana Murthy
Sri A V Ramakrishna Rao
H.O: Dr. Pattabhi Bhavan,372

5-9-11, Saifabad, Hyderabad - 500 004.
www.andhrabank.in
Designed by: Inter Publicity Pvt. Ltd. l 99122 16956

Andhra Bank Annual Report 2014 15

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Andhra Bank Annual Report 2014 15

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ANNUAL REPORT 2014-15

Shri Ajit Kumar Rath

Shri Anandrao Vishnu Patil

Dr. Naina Sharma

Shri Amit Goel

ANNUAL REPORT 2014-15

/ CONTENTS OF ANNUAL REPORT

Directors Report / Management Discussion and Analysis .....................................................................................................20

Disclosures Under Pillar-III of Basel-II (New Capital Adequacy Framework) ............................................................................64

/ Corporate Governance Report .............................................................................................................126

Abridged Financial Statements in Foreign Currency ..........................................................................................................270

Classification of Branches - Population Groupwise ..............................................................................................................272

Financial Statements of Subsidiary - Andhra Bank Financial Services Limited .........................................................................273

/ Proxy Form ...................................................................................................................................................365

Registrar & Share Transfer Agents

NAG & ASSOCIATES

PREM GUPTA & CO

M/s. MCS SHARE TRANSFER AGENT LIMITED

BASHA & NARASIMHAN

2013-14 6.9% - 7.4% ( -

ANNUAL REPORT 2014-15

Chairman & Managing Directors Letter to Shareholders

The financial year 2015-16 has unfolded itself as an

It gives me immense pleasure

The performance highlights of your Bank for the Financial

The global economic activity recovered during FY 2014-15,

Cost of Deposits stood at 7.73%.

However, it is expected that the global economy will trace on

Net NPAs to Net Advances Ratio reduced from 3.11%

Return on Average Assets stood at 0.38%.

The role of Agriculture as a sector for fuelling growth

During FY 2014-15, your Bank has taken the following I.T.

ANNUAL REPORT 2014-15

Implementation of Two Factor Authentication solution

Customized Commercial Tax collection module for the

o Customized Portal for Rajiv Vidya Mission

Introduced the facility of Scheduling of NEFT payments

o AB e-passbook to maintain passbook on

Enabled card less cash deposits at BNA to facilitate

Enabled Donation modules for HUDHUD Cyclone

Your Bank is committed towards delivering best services

Enabled foreign inward remittances through IMPS.

With warm wishes,

Launched Cash Recyclers 1st of its kind in AP & TG.

The Bank processed 1.42 Cr DBT record and credit

Leveraging the strong IT background, the Bank has

o Export Data Processing and Management

Missed call Balance Inquiry facility

The Banks IT Department received ISO 27001: 2013

Enabled E-KYC for sourcing of information directly

Mandate Management System

PMJDY accounts opening through E-KYC The

(A Govt. of India Undertaking)

ANNUAL REPORT 2014-15

(A Govt. of India Undertaking)

To declare dividend on Equity Shares for the FY 2014-15;

RESOLVED THAT pursuant to the provisions of the Banking

may be issued and/or other permitted securities which are

ANNUAL REPORT 2014-15

b) The Bank is pursuant to Proviso to Regulation 85(1)

ANNUAL REPORT 2014-15

Subject to the above, as per Regulation 68 of Andhra

ANNUAL REPORT 2014-15

shareholder details. Shareholders holding shares in