2. Performance / Financial Highlights
March 2007

3. Brief Profile
Established on Nov 20th 1923 by the Veteran Freedom Fighter and a multi-faceted genius – Dr Bhogaraju Pattabhi Seetaramaiah
Nationalized on 15th April 1980
Total Business Delivery Channels – 1930
Sponsored Two Regional Rural Banks
Dividend Declared –24%, 28%, 30%,35% and 38% during the last five years.

4. Performance Highlights for March 2007
Total Business Rs. 69,687 Crores.
Continues to maintain very Low NPA levels – Gross 1.41% & Net 0.17%.
Net Profit increased by % on Y on Y basis.
CRAR stands at 11.33%

5. Branch Network As on Rural Semi Urban Urban Metro Total 31.03.04 381
317
277
153
1128
385
329
294
160
1168
389
345
314
165
1213
396
372
342
179
1289
Bank has presence in 22 States and 2 Union Territories

6. Business Levels Details- 31.03.2006 % Growth Deposits Advances (GBC)
(Rs in crores)
Details-
% Growth
Deposits
Advances (GBC)
Investments (Net)
C / D Ratio(%)
Net Interest Income
Operating Profit
Core Operating Profit (excluding
Profit on sale of Investments)
Net Profit
Net NPAs
% of Net NPAs to Net Advances
33922
41454
22.20
22484
28233
25.57
11444
14301
24.97
66.69
68.28
1.59
1169
1418
21.30
703
931
32.43
632
951
50.47
486
538
10.79 47
-9.13 52
0.24
0.17
-0.07

7. Deposits - Composition
(Rs in crores)
Type of Deposit
Current Deposits
- Percentage Share
9.67%
9.29%
9.09%
8.83%
Savings Deposits
27.67%
26.86%
27.22%
25.70%
Term Deposits
62.66%
63.85%
63.69%
65.47%
T O T A L:

8. Deposits - Average
(Rs in crores)
Type of Deposit
Average
Current Deposits
Savings Deposits
Term Deposits
T O T A L:

9. Advances - Major Sector-Wise Exposure
(Rs in crores)
SECTOR
Food Credit
700
800
751
898
Non-food Credit
12684
17110
21733
27336
Growth in Non Food Credit
15.94%
34.89%
27.02%
25.78%
- Medium & Large Industries
3511
4958
6412
9048
- Priority Sector
5144
7331
8627
11427
- Other Sectors
4029
4821
6694
7759
Gross Bank Credit
13384
17910
22484
28234
% GROWTH IN GBC
12.48%
33.82%
25.24%
25.59%

10. Retail Credit
(Rs in crores)
Category
Housing Loans (Direct)
1031
1263
1572
1774
Housing Loans (Indirect)
213
615
864
2204
Educational Loans
396
513
677
904
Other Retail Credit
1057
1324
1934
1739
Total
2697
3715
5047
6621

11. Quality of Loan Assets Asset Quality 31.03.04 31.03.05 31.03.06
Standard Assets
95.40%
97.48%
98.06%
98.59%
Sub-Standard Assets
1.55%
0.75%
0.51%
0.79%
Doubtful Assets
3.01%
1.73%
1.30%
0.54%
Loss Assets
0.04%
0.13%
0.08%
T O T A L
100.00%

12. Gross NPAs to Gross Advances Net NPAs to Net Advances
Non-performing Assets – Year Wise Movement in Five Years
As on
Gross NPAs to Gross Advances
Net NPAs to Net Advances
Rs. Crore %
Rs. Crore
615.37
4.60
120.07
0.93
440.93
2.46
48.97
0.28
436.91
1.94
52.46
0.24
397.01
1.41
47.25
0.17

13. Provision Coverage for NPAs & Slippage Ratios
As on
Provision Coverage %
Slippage Ratio %
80.16
2.61
88.22
1.18
87.20
0.88
86.52
1.11

14. NPA Movement PARAMETER 31.03.04 31.03.05 31.03.06 31.03.07
(Rs in crores)
PARAMETER
Gross NPAs at the beginning of the period
580.70
615.37
440.93
436.91
Less: Reduction during the period
259.89
324.68
157.28
283.56
NPAs after reduction
320.81
290.69
283.65
153.35
Add: Additions during the period
294.56
150.24
153.26
243.66
Gross NPAs at the end of the period
397.01
Net NPAs at the end of the period
120.07
48.97
52.46
47.25

15. Investments Particulars 31.03.2004 31.03.2005 31.03.2006 31.03.2007
(Rs in crores)
Particulars
Total (Net) Investments
Average Investments
Profit on Sale of Investments
401.76
385.51
70.84
53.71
Yield on Investments
8.92%
8.14%
7.29%
7.34%

16. Investments - Composition
(Rs in crores)
Type of Investments
Government Securities
Other Approved Securities
212.52
152.99
153.14
148.54
Shares
89.02
243.64
133.98
216.28
Debentures and Bonds
956.25
924.71
947.49
Subsidiaries and/ or Joint Ventures
9.31
Others (IDBI Deposits, IVPs, Units of UTI &Mutual Funds and RIDF
240.11
294.48
473.74
Total Investments

17. Quality of Investments Portfolio
Duration of Investment portfolio as on is 4.92 years. (4.65 years as on )
Duration of AFS portfolio as on is 2.31 years (2.03 yrs as on )
NPAs in Investment Portfolio – Rs lakhs –100% provided (Rs.1.31 lakhs as on )

18. Profit & Loss Account - Spread Management
(Rs in crores)
Particulars FY
2004
2005
2006
2007
Interest Income
Interest Expenses
Interest Spread (NII)
910.58
Net Interest Margin
3.78%
3.58%
3.32%
3.20%

19. Interest Income Particulars FY 2004 FY 2005 FY 2006 FY 2007 Advances
(Rs in crores)
Particulars
FY 2004
FY 2005
FY 2006
FY 2007
Advances
Investment
951.16
823.27
790.60
896.43
Others
45.28
91.59
120.40
115.50
T O T A L

20. Interest Expenses Particulars FY 2004 2005 2006 2007
(Rs in crores)
Particulars FY
2004
2005
2006
2007
Interest on Deposits
Interest on Sub-ordinate Debt
45.78
49.33
60.32
46.80
Interest on Borrowings
31.98
25.67
56.45
40.21
T O T A L

21. Profit & Loss Account – Non-interest Income
(Rs in crores)
A) Non-interest Income from Core Operations FY
2004
2005
2006
2007
1. Commission & Exchange
115.91
139.04
169.71
181.56
2) Dividend Income
14.76
9.94
8.42
5.95
3) Forex Profit
20.06
28.45
27.71
32.27
4) Other Income
125.55
190.41
114.87
173.40
Sub Total
276.28
367.84
320.71
393.18
B) Profit on Sale of Investment
401.76
385.51
70.84
53.71
Total Non Interest Income
678.04
753.35
391.55
446.89

22. Non-Interest Expenditure
(Rs in crores)
Particular FY
2004
2005
2006
2007
Variance over 2006
Establishment Expenses
409.41
539.53
492.89
548.80
11.34%
Other Operating Expenses
249.05
289.93
365.05
384.39
5.30%
T O T A L:
658.46
829.46
857.94
933.19
8.77%

23. Provisions & Contingencies
(Rs in crores)
Particulars
FY 2004
FY 2005
FY 2006
FY 2007
Income Tax
224.09
222.77
80.00
247.00
Dep./Loss on revaluation of Investments
-7.41
166.52
65.29
62.82
Provision for NPAs
242.53
12.40
40.00
38.57
Provision against Standard Assets
3.50
13.29
39.87
46.00
Amortization
3.96
66.47
0.00
0.00*
Others
-8.62
- 8.07
-1.05
Total
466.67
472.83
217.09
393.34
* For amortization expenses amounting to Rs crores are deducted from the other income as per RBI guidelines. Similar effect is carried for 2006 for the sake of comparison.

24. Net Profit Particulars FY 2004 2005 2006 2007 Operating Profit 930.17
(Rs in crores)
Particulars FY
2004
2005
2006
2007
Operating Profit
930.17
992.93
702.59
931.24
Core Operating Profit (excl. Profit from sale of Investments)
528.40
607.42
631.75
877.53
Provisions
466.67
472.83
217.09
393.34
Net Profit
463.50
520.10
485.50
537.90

25. % OF TIER-I TO TOTAL CAPITAL
Capital Structure
(Rs in crores)
YEAR
TOTAL
CAPITAL
TIER-I CAPITAL
TIER-II CAPITAL
% OF TIER-I TO TOTAL CAPITAL
719.00
59.56%
772.64
66.28%
423.52
87.15%
423.97
88.11%

26. Financial / Performance
Key Ratios and Indicators at a Glance
FY 2004 FY
2005
2006
2007
Cost of Deposits
5.87
4.86
5.32
Yield on Advances
10.52
9.43
9.26
9.88
Yield on Investments
8.92
8.14
7.29
7.34
Contd…

27. Financial / Performance
Key Ratios and Indicators at a Glance
Ratios FY
2004
2005
2006
2007
Non Interest Income to Average Working Funds
2.70
2.67
1.30
1.09
Cost of funds
5.24
4.27
4.28
4.63
Yield on funds
8.86
8.06
7.60
8.08
Net yield
3.62
3.79
3.32
3.45
Contd…

28. Financial / Performance
Key Ratios and Indicators at a Glance
Ratios
FY 2004
FY 2005
FY 2006
FY 2007
Cost to Income Ratio
41.45
45.51
52.73
50.05
Staff Cost as % of AWF
1.63
1.91
1.40
1.34
Other Operating Expenses as % of AWF
0.99
1.03
1.04
0.94
Contd…

29. Earnings Ratios
FY 2004 FY
2005
2006
2007
Return on Avg. Assets (ROAA) %
1.84
1.38
1.31
Return on Net Worth (RONW) %
35.91
28.31
16.78
17.78
Earnings Per Share (Amount in rupees)
(On annualized basis)
11.59
13.00
11.78
11.09
Book Value Per Share (Amount in rupees)
36.65
45.93
59.67
65.08
Contd…

30. Productivity Ratios FY 2004 2005 2006 2007 Business Per Employee
(Rs in Lakhs) FY
2004
2005
2006
2007
Business Per Employee
250.30
346.25
426.75
536.06
Gross Profit Per Branch
81.80
85.01
63.41
72.69
Net Profit Per Employee
3.50
3.97
3.69
4.14
Business Per Branch
Contd…

31. Capital Adequacy / Other Ratios
As on
Tier I Capital Ratio
8.17%
8.03%
12.20%
9.98%
Tier II Capital Ratio
5.54%
4.08%
1.80%
1.35%
Total Capital Ratio (CRAR)
13.71%
12.11%
14.00%
11.33%
Net Worth to GBC %
11.27%
10.26%
12.87%
11.18%
Net NPAs to Net worth %
8.27%
2.67%
1.81%
1.50%
Net NPAs to Net Advances %
0.93%
0.28%
0.24%
0.17%
Contd…

32. Additional Disclosures Break up of Investments
(Rs in crores)
Nature of Investments
As on
As on
As on
Amt.
% of Total
SLR Securities
8398
78.88
9370
81.88
11450
78.52
Non-SLR Securities
1758
16.51
1584
13.84
2901
19.89
Recapitaliza-tion Bonds
490
4.61
4.28
232
1.59
Total
10646
100
11444
14583
Contd…
SLR maintained as on – % of NDTL

33. Additional Disclosures
CRAR as per extant guidelines of RBI including capital charge for Market Risk stands at 11.33% as on as against 14.00% as on
If capital charge for Operational Risk, is also factored, the CRAR would stand at 10.36%. (RWAs for Operational Risk as on are reckoned for this purpose)
Contd…

34. Business Delivery Channels / Service OutletsFY
2004
2005
2006
2007
Branches
1128
1168
1213
1289
Extension Counters
129
136
123 99
ATMs
272
330
391
505
Satellite Offices 44 38 37
TOTAL
1573
1672
1764
1930

35. Clerical Staff to Officer Ratio
Intellectual Capital
As on
OFFICERS
CLERICAL STAFF
SUB-STAFF
TOTAL
Clerical Staff to Officer Ratio
7753
3124
2218
13095
0.40
7989
2885
2233
13107
0.36
8072
2827
2270
13169
0.35
8021
2675
2285
12981
0.33

36. Technology Initiatives / Value Added Services
100% Branch Computerization achieved by
ATMs increased from 391 as on to 505 as on
Branches/ECs connected to ATMs increased from as on to 1059 as on
No. of ATM/Debit cards increased from 1.83 million as on to 2.34 million as on
Total shared ATM net work with IDBI Bank, UTI Bank, Indian Bank, HDFC Bank, SBI group and others stand at 17500
Contd…

37. Technology Initiatives/Value Added Services Contd
Technology Initiatives/Value Added Services Contd., Cash Management Services commenced in the following is the growth
Details
No of Branches 56
123
128
No of Customers 65 86
113
Total Turnover
Rs.818 Crs
Rs.1147 Crs
Rs.1523 Crs

38. Technology Initiatives/Value Added Services Contd
Technology Initiatives/Value Added Services Contd., Cluster based Core Banking
Total Business Units covered
1104
Of which Branches
1006
Extension Counters 83
Service Centers 15
% of Branch network covered
78.50%
% of Business covered
93.50%

39. Technology Initiatives/Value Added Services
Average ATM hits 1.36 lakhs per day.
Mobile Recharging facility.
facility to book railway tickets in the internet
Infi-net, the Internet Banking Facility
Quikticket: Facility to book Kingfisher Airlines tickets through ATMs of the Bank.
Internet Payment Gateway
Tech savvy products such as e-Seva, e-Hundi, Utility Bill Payment, Visa Electron Debit Card, Instant Funds Transfer, On-line Tax Accounting System, RTGS, ABB, Shared Clearing, E-BA1 etc.
Various Insurance Linked Deposit products like AB Jeevan Prakash, AB Jeevan Prakash Plus, AB Arogyadaan and AB Flex.
New Tech savvy product AB Kisan Vikas ATM Card has been introduced.

40. Value Added Services Internet Payment Gateway
FIRST BANK IN INDIA TO START BIOMETRICS ATM
Introduced 8 a.m. to 8 p.m. and 7 day Banking in select branches to extend the Service hours to clientele.
Imparting training to Agriculturists, Rural Unemployed youth on vocational courses through our 9 Rural Development Institutes.
Contd…

41. AWARDS & REWARDS
Best Bank Award for use of IT for customer service in semi-urban and rural areas from IDRBT
Merit Award for “Banking Sector subject to prudential supervision” from SAFA (South Asian Federation of Accountants) amongst all South Asian Banks for the quality of the balance sheet.
“Fintech Asia 2006” Award for “Any Branch Banking” Initiatives.
Rated second best bank under category of Asset Quality in Business Today KPMG Survey of Best Banks 2006.
Joint Runner-up Award in the Best Payments initiative for promoting ATM Channel by IBA & TFCI.

42. HIGHLIGHTS DURING THE YEAR
Andhra Bank has hosted the Bankers’ Conference “BANCON-2006” in collaboration with the Indian Banks’ Association at Hyderabad.
First Bank in India to introduce ATM with Biometric Access and audio guidance for the benefit of rural areas and illiterate customers.
Mobile ATM facility provided at Kottayam for the benefit of Sabarimalai pilgrims.
Internet Banking introduced.
Special Facility to book Kingfisher Air tickets through the ATMs introduced.
AB Kisan Vikas ATM Card introduced for the benefit of agricultural community.
Facility to book train tickets through internet introduced.
Opening of representative offices is under consideration – Riyadh, Kuwait & New Jersey.
Preparations are underway for a joint venture in Banking operations in Malaysia with Bank of Baroda and Punjab National Bank as partners.

43. FIRST BIO METRIC MOBILE ATM IN INDIA

45. Results that define pursuit of Excellence are due to:
Support from Customers, Stake-holders and Well Wishers,
Team work of dedicated employees AND
Excellent co-operation from Banking Analysts.

47. Thank You