1. Andhra Bank Welcomes to the press meet

2. ANDHRA BANK PROFILE/ PERFORMANCE HIGHLIGHTS 2005-06

3. ANDHRA BANK - the driving force behind our performance

4. Brief Profile Established by a Freedom Fighter – Dr Bhogaraju Pattabhi Sitaramayya. Established on November 20 th 1923 Nationalized on 15 th April 1980 Total Business Delivery Channels – 1764 Total Business Rs.56,000 Crores Sponsored two Regional Rural Banks Dividends Declared – 14%, 24%, 28%, 30% and 35% during the last five years Andhra Bank

5. Performance Highlights for FY 2006 Total Business crossed Rs.56000 crores. Distributable Profit increased by 42.22%. (From Rs.256.03 cr in 2005 to Rs.364.12 cr in 2006) Annualized yield works out to FPO Equity Holders at 26.78%. Low NPA levels – Gross NPAs @ 1.94% & Net NPAs @ 0.24%. Andhra Bank

6. Business channels Andhra Bank As onBranchesECsSatellite Offices ATMsTotal 31.03.031100113442201477 31.03.041128129442721573 31.03.051168136383301672 31.03.061213123373911764  Bank has presence in 21 States and 2 Union Territories.

7. Business Levels Andhra Bank Details 31.03.05 Amount (Rs. in cr) 31.03.06 Amount (Rs. in cr) Deposits2755133922 Advances (GBC)1791022484 Investments1064611444 C / D Ratio(%)65.1866. 69 Total Interest Income22732674 Net Interest Income10691169 Core Operating Profit (excluding Profit on sale of Investments) 607698 Operating Profit993769 Core Net Profit (excluding profit on sale of Investments) 135415 Net Profit520486

8. DEPOSITS – Composition (Rs. in Crores) Type of Deposit 31.3.200531.03.2006 Current Deposits 2558.293084.82 Growth (%)15.2920.58 Savings Deposits 7400.779232.39 Growth (%)16.5824.75 Term Deposits 17591.6521605.20 Growth (%)22.3922.82 Total Deposits 27550.7133922.41 Growth (%)20.1023.13 Andhra Bank

9. SECTOR31.03.0531.03.06Growth (%) Gross Bank Credit179102248425.54 Non - Food Credit171102173327.02 - Medium & Large Inds.,4958641229.33 - Priority Sector7331862717.68 -Agriculture3078406432.03 - SME Sector1922243926.90 - Retail Credit3715505035.94 - Housing Loans1878243629.71 - Educational Loans51367731.97 ADVANCES – SECTOR WISE EXPOSURE Andhra Bank (Rs. in crores)

10. INVESTMENTS – COMPOSITION Type of Investments31.03.0531.03.06 Government Securities8777.559749.27 Percentage Govt. Sec. to Investments82.4585.19 Other Approved Securities152.99153.14 Shares243.64133.98 Debentures and Bonds1168.31924.71 Subsidiaries and/ or Joint Ventures9.31 Others294.48473.74 Total Investments10646.2811444.15 Andhra Bank (In Rs crores)

11. PARAMETER 31.03.0531.03.06 GROSS BANK CREDIT1791022484 GROSS NPAs440.93436.91 % OF GROSS NPAs2.461.94 NET NPAs48.9752.46 % OF NET NPAs0.280.24 ASSET QUALITY Rs. in Cr. Andhra Bank

12. CAPITAL STRUCTURE PARAMETER 31.03.0531.03.06 TIER-I CAPITAL15192872 TIER-II CAPITAL 773424 TOTAL CAPITAL22923296 % OF TIER-I TO TOTAL CAPITAL 66.2887.15 INTELLECTUAL CAPITAL ( STAFF STRENGTH IN NUMBER ) 1310713169 Andhra Bank (In Rs. Crores)

13. Andhra Bank FINANCIAL PERFORMANCE Key Ratios and Indicators at a Glance Ratios (Figures in %) FY 2005FY 2006 Cost of Deposits4.86 Cost of Funds4.274.28 Yield on Advances 9.439.26 Yield on Investments 8.147.29 Yield on Funds 8.067.60 Net Yield on Funds 3.793.32 Earning per Share (annualised) 13.0011.78 Book Value per Share 45.9359.67 Staff Cost to Average working funds 1.911.40 Other Operating Expenses to AWF 1.031.04 Business per employee (Rs. In Cr) 3.464.27 Business per Branch (Rs. In Cr) 38.8646.33

14. Technology Initiatives  100% Branches Computerized.  No. of ATM/Debit Cards stood at 1.83 million against 1.29 million in the previous year.  ATM Network shared with IDBI Bank, UTI Bank, Indian Bank, HDFC Bank, SBI Group etc.  Total ATM distributory channels 14400.  Mobile banking - branches connected 453 and registered users 4175.  10000 Business units covered under cluster based core banking solution. It covers 92.58% of business. Andhra Bank

15. Technology Initiatives (contd.)  AB Kisan Vikas ATM card introduced for easy access to money to Farming community.  Mobile ATM first of its kind launched to enhance the reach of the bank to unbanked areas.  Shortly introducing - Internet Payment Gateway and Internet Banking. Andhra Bank

17. Value Added Services  Insurance linked savings deposits – Abhaya, Abhaya Gold, Jeevan Abhaya, Jeevan Prakash, Jeevan Prakash plus, Arogyadaan, AB Flex etc. offered.  Bancassurance – Tied up with LIC and United Insurance companies for sale of Life and non- life products.  Associated for sale of Mutual Fund products with major companies.  Introduced Depository participatory services.  Cash Management Service covered 84 customers in 123 branches. Turnover for the year crossed Rs.1147 Crore. Andhra Bank

18. Value Added Services (Contd..) * Introduced 8 a.m. to 8 p.m. and 7 day Banking in select branches to extend the Service hours to clientele. * Opened a Representative Office in Dubai to coordinate with NRIs for increasing our NRI customer base. * Imparting training to Agriculturists, Rural Un- employed youth on vocational courses by our 9 Rural Development Institutes Andhra Bank

20. ISO 9001:2000 CERTIFICATE ISO 9001:2000 Certification has been awarded to two of our offices - STAFF COLLEGE - DATA CENTRE at Department of Information Technology -- Andhra Bank

21.  Ranked 683 rd among Top 1000 Banks in the World for 2005 by “The Banker”a London Based publication.  Ranked as Number 1 in Asia under the “Return on Capital”for 2005 by “The Banker”.  Adjudged as the Best Bank under Large Banks category by “The Analyst” an ICFAI publication.  Assigned CGR – 2 by ICRA for Corporate Governance. Awards received by the Bank Andhra Bank

22. Awards received by the Bank (Contd.)  Awarded Silver Shield for excellence in financial reporting for 2005 by ICAI.  Runner up award under best payment initiative by IBA for 2005.  FINTECH Asia 2006 Award for Any Branch Banking (ABB). Andhra Bank

23. ANDHRA BANK MAKING A DIFFERENCE WITH PEOPLE, IDEAS AND SOLUTIONS. COMMITMENTS TO VALUES FULFILLED THANK YOU