AUDITED FINANCIAL RESULTS For the year ended 31 st March 2007

HIGHLIGHTS Amount in Rs.Crore

FINANCIALS [Amount in Rs. Crore] Growth [%] [Q4] [Q4] Growth [%] Total Income Total Expenses Operating Profit [excl. profit on sale of Investment] Operating Profit [excl. profit on sale of investments/ fixed assets] Operating Profit [incl. profit on sale of Investment/ fixed assets] Provisions & Contingencies [-ve] Profit before Tax Provision for Tax[21.49]† †[8.28] Net Profit † After reversal of provision of earlier years of Rs crore [Rs crore) † Operating profit is after regrouping (deducting) of amortizing of premium paid on investments – Rs crore [19.96 crore]

PROFIT & LOSS [Amount in Rs. Crore] Growth [%] [Q4] [Q4] Growth [%] TOTAL INCOME Interest Income Advances Investment [6.86] Others Non Interest Income [10.82] [33.62] - Profit on sale of securities [68.52] [72.83] - Profit on sale of fixed assets Others

PROFIT & LOSS [Amount in Rs. Crore] Growth [%] Mar ’06 [Q4] Mar ’07 [Q4] Variation [%] TOTAL EXPENSES Interest Expenses Deposits Others Operating Expenses Staff related Others NET INTEREST INCOME OPERATING PROFIT Provisions & Contingencies [29.49] Provision for Taxes[23.29] † †[8.28] NET PROFIT † After reversal of provision of earlier years of Rs crore [Rs crore]

NON INTEREST INCOME [Amount in Crore] Variation [%] Mar ’06 [Q4] Mar ’07 [Q4] Variation [%] Profit on sale of Investment [68.52] [72.83] Profit on sale of fixed assets Commission Income Exchange earned on Forex Process Fee Other Income Recovery in w/off Investment [81.92] Recovery in w/off Accounts Profit/Loss on Revaluation of Inv. [19.96][30.72]53.91[5.01][8.63] Total [10.82] [33.62]

BREAK UP OF NON INTEREST INCOME [Amount in Rs. Crore] Mar ’06 [Q4] Mar ’07 [Q4] Commission Banking – DD/LC/BG etc Third part products – Ins/MF/Franking Govt. Business SDV locker rent Total commission income Exchange Process fee † includes Rs crore on account of change in Accounting Policy

BREAK UP OF NON INTEREST INCOME.. contd [Amount in Rs. Crore] Mar ’06 [Q4] Mar ’07 [Q4] Other income Profit from sale of investments Profit from revaluation of investments †[19.96][30.72][5.01][8.63] Dividend income Profit from sale of fixed assets Incidental changes Supervision charges Others Total other income Recovery in written off advances Recovery in written off investments Total non interest income † Regrouping done from provision to Non Interest income

PROVISIONS & CONTINGENCIES [Amount in Rs. Crore] Variation [%] Mar ’06 [Q4] Mar ’07 [Q4] Variation [%] Non Performing Loans [3.16] Frauds & Other Assets[0.25][0.86] [0.34] Investments [69.33] Fringe Benefit Tax [22.78] Income Tax incl. DTA[23.26]† †[8.28] Prov for Standard Assets [23.44][4.71]13.18 Country Risk Contingent Liabilities[1.45][0.76][47.59] TOTAL [20.74] † After reversal of provision of earlier years of Rs crore [Rs crore]

RESOURCES [Amount in Rs. Crore] Growth [%] Current Savings Term Total Share of Demand Deposits (CASA) Borrowings

DEPOSITS Amount in Rs.Crore

DEPLOYMENT [Amount in Rs. Crore] Growth [%] Gross Advances Priority Sector Agriculture SSI Others PS PS Advances to Net Bank Credit [%] Retail Credit SME CD Ratio [%] Investment

INVESTMENT PORTFOLIO [Amount in Rs. Crore] HTM AFS HFT 74 3 Total Modified duration – AFS + HFT

ASSET QUALITY [Amount in Rs. Crore] Variation [%] Q Q4 Variation [%] Gross Non Performing Assets Opening Balance Less: -Cash Recovery & credit operations Upgradations Write-off Total Reductions Add: Slippage & Debit Operations Closing Balance [21.58] [21.58]

ASSET QUALITY Amount in Rs.Crore

ASSET QUALITY [Amount in Rs. Crore] Q Q4 NPA Provision Opening Balance Additions [3.16] Reductions Closing Balance Gross NPA to Gross Advances [%] Net NPA to Net Advances [%] Provision Cover [%]

CAPITAL ADEQUACY [Amount in Rs. Crore] Eligible Tier I Capital Eligible Tier II Capital Eligible Total Capital Total Risk Weighted Assets Core CRAR CRAR on Tier II Capital CRAR Networth

COST / YIELD FACTORS [%]

FINANCIAL RATIOS Mar ’06 [Q4] Mar ’07 [Q4] Cost of Funds [%] Yield on Funds [%] Interest Income as percentage to AW funds Non Interest Income as percentage to AW Funds Interest spread to working funds Dividend [%]

FINANCIAL RATIOS Mar ’06 [Q4] Mar ’07 [Q4] Operating Profit as percentage to working funds Operating Profit (Excl. profit on sale of fixed assets) as percentage to working funds Net Interest Margin [NIM] % Earning Per Share Rs Book Value (excluding revaluation reserve) Rs Cost / Income Ratio [%] Coverage Ratio [%] – [Networth-NNPA] / Total Assets]

PRODUCTIVITY RATIOS Mar ’06 [Q4] Mar ’07 [Q4] Business Mix [Rs. in Crore] Business Mix Per Employee [Rs. in Crore] Profit Per Employee [Rs.in Lakhs] Business Per Branch [Rs. in Crore] Profit Per Branch [Rs. in Lakhs]

NEW INITIATIVES AND THRUST EXPANDING OUTREACH : 13 New Branches were opened during the year - 1st foot print established at Pondicherry (U.T.); Total Branches increased from 1122 to 1135; Industrial Finance Branch (IFB) established at Ahmedabad – addition to the existing One IFB & One CBB at Mumbai; 50 more branches awarded ISO Certification during the year - total tally : 225.

NEW INITIATIVES AND THRUST TECHNOLOGY: Landmark year for the Bank towards its Technology based initiatives; Ushered into CORE BANKING, having awarded a Total Outsourcing contract to M/s Wipro to cover 850 Branches under the solution - Software Support from Infosys - Finacle; 12 branches opened during the year were taken under Core Banking ab-initio; 29 New ATMs installed during the year - Total tally of 269 ATMs (including 49 off-site locations); 2 Bio-metrics ATMs installed at Rural Centres in Gujarat - introducing a feel & ease of Technology to the Rural / less-literate folk;

NEW INITIATIVES AND THRUST TECHNOLOGY: Transformation through Technology : Bank has set up its own network “DENANET” using 521 leased lines, 226 ISDN lines, 121 V-SATs and 615 Dial up lines connecting 1006 branches and 34 administrative offices; ‘DENANET” is continuously being monitored on 24x7 basis ensuring more than 99 % uptime. MoU signed with Indian Railways for installation of 117 ATMs & 78 Kiosks at Railway Stations for dispensation of Railway tickets, e-tickets, monthly / quarterly tickets, PRS / UTS tickets, besides offering other normal services.

NEW INITIATIVES AND THRUST AUGMENTING RESOURCES: Garnering Retail Deposits : Bank had launched three new deposit schemes viz. ‘Dena Maha Tax Bachat Yojana’, ‘Dena Double Deposit Scheme’ and ‘Denalaxmi Gold Deposit Scheme’ during the year; Also introduced ‘Dena Super Premium Current Account’, a scheme bundled with freebies to cater to the premium segment and to augment precious low cost deposits; Specialised services to NRIs: 4 new NRI cells set up during the year - total tally of 16;

NEW INITIATIVES AND THRUST GARNERING FEE BASED INCOME: Bank entered into tie up arrangement with 4 more Mutual funds during the year in addition to existing 4, thus providing a bountiful basket of varied products from the leading mutual funds viz. UTI, ICICI Pru, LIC, Franklin Templeton, HDFC, Reliance, ING & Kotak Mutual, for selling their products; Already tied up with LIC for selling Life Insurance Products and entered into a referral arrangement with Oriental Insurance for Non-life products; Innovative ‘Dena Grah Swami Suraksha Yojna’ introduced, in association with LIC to provide Loan linked Life Insurance Cover to a Housing Loan Borrower during the currency of a the Loan ;

NEW INITIATIVES AND THRUST GARNERING FEE BASED INCOME: Rupee Drawing Arrangement made with UAE Exchange for inward remittances of NRI funds during the year, with a view to enable new client acquisition and help garner NRI / Resident deposits; Adds to the bank’s existing similar arrangements with Western Union Money & Times of Money for foreign inward remittances.

NEW INITIATIVES AND THRUST PRIORITY LENDING: Collaborated with Gujarat Green Revolution Co Ltd for promoting lending under Micro Irrigation Scheme – Drip & Sprinkler Irrigation; ‘Dena Swachha Gram Yojna’, a scheme to provide collateral free finance for construction of Toilets / Bathrooms in rural areas launched, with a view to provide clean and hygienic living conditions to the rural folk; ‘Dena Paryavaran Suraksha Yojna’, a scheme to finance autorickshaw owners for acquiring / fitting CNG / LPG gas kit in old auto rickshaws launched as a measure to curb environmental air pollution; 900 such auto rickshaw owners financed so far; contributing to a safer environment, in a subtle way;

NEW INITIATIVES AND THRUST HUMAN RESOURCES DEVELOPMENT: Undertaken major initiative on building Leadership Skills across cadres; Bank has engaged the services of a consultant of repute to advise on the strategies for repositioning of the Bank; 371 new officers recruited during the year, to infuse young and specialised talent in different specialised areas viz. Credit, IT, Marketing, Agriculture and Treasury etc.; Bank continues the process of customer-centric grooming of its frontline staff at the branches.

ROAD MAP AHEAD: Plans to open at least 50 new branches during the current year; Another Industrial Finance Branch slated to be opened at New Delhi; 130 more Branches planned to be rolled out under CBS during FY ; Bank intends to make the Call Centre operationalised by the end of the year, to facilitate the bank’s customers; To expand outreach and facilitate rural centres with a greater number of bio- metric ATMs;

ROAD MAP AHEAD: Bank proposes to enter into a tie-up arrangement with Postal department for engaging their services as Business facilitators for processing and recovery of loans; To continue to offer innovative deposit schemes to augment low cost / retail deposits; The Bank continues to lay focus on credit to productive sectors of the economy viz. SME, Manufacturing and Agriculture etc.; To shore up new avenues of fee based income viz. Selling of Gold, tie ups with more mutual funds / exchange houses etc.; Committed to reposition itself as a robust medium sized Bank with strong fundamentals.

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