Audited

Financial

Results

for the year ended 31st March 2009

2

KEY INDICATORS

[Rs. Crore][Rs. Crore]

F.Y.F.Y.GrowthGrowth

[%][%]

QuarterQuarterGrowthGrowth

[%][%]2007-082007-08 2008-092008-09 Mar’08Mar’08 Mar’09Mar’09

Total income 3154.02 3877.62 22.94 882.98 1035.83 17.31

Total expenses 2467.58 3151.26 27.71 664.05 848.07 27.71

Operating Profit 686.44 726.36 5.82 218.93 187.76 [14.24]

Exceptional items

Profit on sale of properties

29.95 0.00 29.95 0.00

Provision for wage revision

0.00 70.00 0.00 20.00

Business Operating Profit

656.49 796.36 21.30 188.98 207.77 9.95

Provisions 326.65 303.70 [7.03] 107.94 76.60 [29.03]

3

KEY INDICATORS

[Rs. Crore][Rs. Crore]

F.Y.F.Y.

GrowthGrowth

[%][%]

QuarterQuarter

GrowthGrowth

[%][%]

2007-082007-08 2008-092008-09 Mar’08Mar’08 Mar’09Mar’09

Net Profit 359.79 422.66 17.47 110.99 111.17 0.15%

Business Net Profit [excl. exceptional items]

329.84 492.66 49.36 81.04 131.17 61.86

EPS [Rs.][non annualized]

12.54 14.74 3.87 3.88

Return on Assets [Annualized] - %

1.06 1.02 1.21 1.00

4

KEY INDICATORS

[Rs. Crore] 31.03.08 31.03.09% Growth over

Mar 08

Aggregate Deposits 32232.39 41405.12 28.46

Inter Bank Deposits 1710.79 1645.49 [3.82]

Total Deposits 33943.18 43050.61 26.83

Gross Advances 23381.16 29185.36 24.82

Investments 10334.98 12538.32 21.32

Gross NPA Ratio [%] 2.45 2.13

Net NPA Ratio [%] 0.94 1.09

CRAR [%] Basel I 11.09 10.73

CRAR [%] Basel II N.A 12.07

5

NET INTEREST INCOME

[Rs. Crore]Growth

[%]

QuarterGrowth

[%]2007-08 2008-09 Mar’08 Mar’09

Interest Income 2675.90 3447.50 28.84 730.24 895.79 22.67

Advances 1953.37 2565.98 31.36 545.22 668.24 22.56

Investment

691.90 828.13 19.69 176.67 220.04 24.55

Inter Bank 19.92 17.20 [13.65] 2.34 4.55 94.44

Others 10.71 36.19 237.91 6.01 2.96 [50.75]

Interest Expense

1817.14 2383.07 31.14 500.99 656.83 31.11

Deposits 1718.11 2255.90 31.30 471.35 624.14 32.42

Others 99.03 127.17 28.42 29.64 32.69 10.29

Net Interest income [NII]

858.76 1064.43 23.95 229.25 238.96 4.24

6

NON INTEREST INCOME

[Rs. Crore]Growth

[%]

QuarterGrowth

[%]2007-08

2008-09

Mar 08 Mar 09

Commission 120.94 132.31 9.40 34.69 37.53 8.19

Profit from Securities 90.02 54.32 [39.66] 8.48 22.01 159.55

Profit from sale of Properties / F&F

29.95 0.00 30.24 [0.62]

Forex Exchange 42.03 43.86 4.35 7.48 9.58 28.07

Process fee 30.10 39.51 31.26 11.24 16.43 46.17

Incidental charges 11.38 26.09 129.26 3.69 21.78 490.24

Recovery in written off advances

114.29 100.24 [12.29] 43.23 27.54 [36.29]

Other Misc. 39.41 33.80 [14.23] 13.69 5.79 [57.70]

Total non interest income

478.12 430.13 [10.04] 152.74 140.04 [8.31]

7

OPERATING EXPENSES

[Rs. Crore]Growth

[%]

QuarterGrowth

[%]2007-08 2008-09 Mar 08 Mar 09

Staff Expenses 370.85 467.89 26.17 85.77 116.69 36.05

Insurance 33.75 38.47 13.99 8.53 9.98 17.00

Postage/Telephone 9.31 12.88 38.35 2.23 3.70 65.92

Printing/Stationery 10.34 9.94 [3.87] 2.61 1.80 [0.81]

Depreciation 29.45 26.84 [8.86] 8.26 6.49 [21.43]

Lighting 19.39 21.03 8.46 4.08 4.63 13.48

Rent & Taxes 36.95 47.82 29.42 10.45 13.25 26.79

Advertising 9.47 11.21 18.37 4.39 3.40 [22.55]

Auditors Fees 7.64 7.45 [2.49] 2.33 2.32 [0.43]

Repairs/Maintenance 19.13 19.31 0.94 4.71 2.76 [41.40]

Core Banking Solution

35.65 33.06 [7.27] 10.00 6.50 [35.00]

Other Expenses 68.51 72.29 5.5 19.70 19.71 0.01

Total Expenses 650.44 768.19 18.10 163.06 191.23 17.28

8

PROVISION & CONTINGENCIES

[Rs. Crore]Quarter

Mar 08 Mar 09 Mar 08 Mar 09

Non Performing Loans 264.00 199.44 127.12 39.88

Tax expense [42.17] 118.77 [128.33] 25.24

Investment Depreciation

27.58 21.05 30.15 12.83

Standard Assets 78.18 [54.78] 78.16 [1.65]

Other provisions [0.94] 19.23 0.84 0.30

Total Provisions 326.65 303.70 107.94 76.60

9

RESOURCES

[Rs. Crore] 31.03.08 31.03.09 % growth

Current Deposits 3015.97 3496.97 15.95

Savings Deposits 10239.19 11395.58 11.29

Term Deposits 18977.23 26512.57 39.71

Aggregate Deposits 32232.39 41405.12 28.46

CASA [%] 41.13 35.97

Inter Bank Deposits 1710.79 1645.49 [3.82]

TOTAL DEPOSITS 33943.18 43050.61 26.83

Borrowing 394.61 52.13 [86.79]

10

RESOURCES

33943

43051

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2007-08 2008-09

Deposits

11

DEPLOYMENT

[Rs. Crore] 31.03.08 31.03.09Growth over

Mar 08

Gross Advances 23381 29185 24.82

Priority Sec. Advance 8096 9715 20.00

Agriculture 2794 3851 37.83

Others 5302 5864 10.60

PS credit to NBC [%] 43.32 41.55

Retail Credit 4294 4424 3.03

S.M.E 3885 4775 22.91

CD Ratio [%] 68.88 67.82

Gross investment 10335 12538 21.32

12

TREASURY

[Rs. Crore] 31.03.08 31.03.09Growth over

Mar 08

SLR Investments 8595.31 10075.80 17.22

Non-SLR Investments 1739.67 2462.52 41.55

Total Investments 10334.98 12538.32 21.32

Of which HFT100.72

[0.97%]104.43

[0.84%]3.68

AFS1612.26

[15.60%]2489.27

[19.85%]54.40

HTM8622.00

[83.43%]9944.62

[79.31%]15.34

AFS / HFT Duration [modified]

3.39 2.86

Portfolio Duration [modified]

4.76 4.74

13

DEPLOYMENT

[Rs. Crore] Mar 08 Mar 09Growth [%]

[y on y]

Net Advances 23024 28878 25.43

Net Investments 10283 12473 21.30

23024

28878

0

5000

10000

15000

20000

25000

30000

Mar '08 Mar' 09

Net Advances

10283 12473

0

2000

4000

6000

8000

10000

12000

14000

Mar '08 Mar-09

Net Investments

14

CAPITAL ADEQUACY

[Rs. Crore] 31.03.08 31.03.09

Tier I capital 1535.55 1780.97

Tier II capital 986.38 1398.53

Total capital funds 2521.93 3179.50

Total RWAs 22742.25 29645.48

CRAR – Basel II N.A 12.07

CRAR Core – Basel II N.A. 6.76

CRAR – Basel I 11.09 10.73

CRAR Core – Basel I 6.75 6.01

Net Worth 1410.55 1637.00

15

ASSET QUALITY

[Rs. Crore] 31.03.08 31.03.09

Gross NPA 572.60 620.77

Net NPA 215.43 313.38

Gross NPA Ratio [%] 2.45 2.13

Net NPA Ratio [%] 0.94 1.09

NPA Provision 347.62 299.65

Provision coverage 60.71 48.27

16

ASSET QUALITY

23381

291852.45

2.13

0

5000

10000

15000

20000

25000

30000

35000

Mar '08 Mar'09

1.9

2

2.1

2.2

2.3

2.4

2.5

Gross Advances Gross NPA

2887823024

0.94

1.09

0

5000

10000

15000

20000

25000

30000

35000

Mar '08 Mar'09

0.85

0.9

0.95

1

1.05

1.1

1.15

Net Advances Net NPA

17

ASSET QUALITY

[Rs. Crore]Mar 08

[FY]Mar 09

[FY]Variation

[%]

Gross NPA

Opening Balance 744.48 572.60

Less:

Cash recoveries 184.86 188.72 2.09

Upgradations 114.07 191.38 67.77

Write off 288.96 247.44 [14.37]

Total Reductions 587.89 627.54 6.74

Add:

Slippage & Debit Operations 416.01 675.71 62.43

Closing Balance 572.60 620.77

18

FINANCIAL RATIOS [cost/yield]

[Quarter]

Mar’08 Mar’09 Mar’08 Mar’09

Cost of Deposits [%] 5.90 6.36 6.08 6.56

Cost of Funds [%] 5.95 6.47 6.13 6.64

Yield on Advances [%] 10.11 10.71 10.08 10.51

Yield on Investments with POSOI [%]

7.74 7.50 7.58 7.59

Yield on Investments without POSOI [%]

6.88 7.04 7.26 6.91

Yield on Funds [%] 8.22 8.76 8.35 8.36

19

FINANCIAL RATIOS[Quarter]

Mar’08 Mar’09 Mar’08 Mar’09

Int. Income as %age to avg. working funds

7.97 8.33 8.04 8.04

Non Int. Income as %age to avg working funds

1.31 1.04 1.56 1.26

Int. spread as %age to avg working funds (NII/Avg. Gross Assets)

2.63 2.57 2.59 2.14

Operating Profit as %age to avg working funds

2.02 1.76 2.38 1.68

Net Interest Margin [%][NII / Income generating assets on average basis]

2.84 2.91 2.81 2.38

Net Interest Margin [%][NII / Income generating assets on bal. sheet date]

2.75 2.48 2.85 2.23

20

FINANCIAL RATIOS[Quarter]

Mar’08 Mar’09 Mar08 Mar09

Earning Per Share Rs.[non-annualized]

12.54 14.74 3.87 3.14

Cost Income Ratio [%] 48.65 51.40 42.69 50.46

Cost Income Ratio [%] without wage provision

0.00 46.72 0.00 45.18

Return on Assets [%][annualized]

1.06 1.02 1.21 1.00

Return on Equity [%][annualized]

21.82 22.30 30.99 20.50

Profit Per Branch[in Rs. Lacs] [annualized]

33.91 38.88 41.84 40.91

Profit Per Employee [in Rs. Lacs] [annualized]

3.61 4.28 4.46 4.50

21

FINANCIAL RATIOS

31.03.08 31.03.09

Coverage Ratio [%] 3.41 3.01

Book Value Rs.[including Revaluation Reserve]

57.35 69.79

Book Value Rs.[excluding Revaluation Reserve]

49.18 62.06

Gross Business Per Branch [in Rs. Crore]

54.03 66.45

Gross Business per Employee [in Rs. Crore]

5.76 7.31

22

• The Bank has opened 26 new branches taking the total

number of branches to 1184. The Bank is further planning

to open 100 new branches during the year.

• During the year 50 branches had obtained ISO 9001:2000

certification increasing the tally of ISO certified branches to

337.

• The Bank has entered into a co-branding tie up

arrangement for issuance of Credit Card with State Bank of

India.

NEW INITIATIVES AND THRUST

23

• The Bank in its pursuit of lending to Corporate / SME is

planning to open four Corporate Business Branches [CBBs] in

Metro cities.

• The Bank in its continuous endeavour of providing better

customer service has constituted a Standing Committee on

Customer Service headed by the Chairman & Managing

Director.

• The Bank is in the process of centralising all its back-office

operations to enable branches to be more customer centric

and growth oriented.

NEW INITIATIVES AND THRUST

24

NEW INITIATIVES AND THRUST— Technology

• Dena Garima – Bank’s Core Banking initiative gained momentum with rolling out of 498 branches during the year 2008-2009, taking the tally to 606 branches covering 293 centers and 26 states / union territories. As on date 654 branches are under Core Banking.

• All the branches of the Bank are computerized and 99.80% of Bank’s business is conducted through technology based solutions.

• A total of 387 ATMs have been installed as on 31st March 2009 all over the country. Out of these ATMs, 284 are Onsite and 103 are Offsite covering more than 260 centers.

• The Bank has launched Dena International Gold Debit Card to NHI customers with Visa affiliation.

• The Bank is offering host of other techno enabled products viz. Mobile banking, Tele banking, Dena Billpay, e-payment of indirect Taxes and RTGS/ NEFT etc.

25

• The Bank has tied up with Life Insurance Corporation for providing

life insurance cover to tractor loan accountholders under Mortgage

Redemption Insurance Scheme.

• Bank has tied up with National Bulk Handling Corporation (NHBC)

for providing financial assistance to farmers and others against

pledge of warehouse receipts issued by NHBC.

• Bank has opened Credit Counseling Center at Himatnagar,

Palanpur, Mehsana, Bhuj in the state of Gujarat and Silvassa in the

UT of Dadra & Nagar Haveli.

• The Bank had facilitated formation of 289 new farmers club during

the year taking the total no. of farmers club at 1276. Dena Singhali

Farmers Club promoted by our Mahuda Branch of Kheda Dist in

Gujarat has received the National Award from the Hon’ble Union

Finance Minister as the best performing Farmers Club in Gujarat

NEW INITIATIVES AND THRUST— Priority Lending

26

• Recruitment process for 553 officers (including specialist officers)

for the year 2008-09 was completed in the last week of Dec’ 08.

• Written Test for 1289 clerical cadre post was held on 8th March,

2009 at 11 centers across the country. Result of the same is likely

to be declared in the month of Apr/May 2009.

• 1522 employees have undergone training during Jan-Mar’09 in

various thrust areas like Credit, CBS, Retail, NPA, SME, HR etc. at

both in-house through STCs/DIIT/Sir SPBTC and through outside

training agencies (both in India & Abroad).

• Bank ensures to provide training to all employees to update and

sharpen their skills.

• Bank recognises the efforts of outstanding achievers and

encourages by suitable awards.

NEW INITIATIVES AND THRUST— Human Resources Development

27

• The Bank has set up Rural Development & Self Employment Training

Institute [RUDSETIs] at Himmat Nagar, Bhuj & Mehsana for imparting

training to unemployed rural youth & women. Over 3530 rural

youth/women have already been imparted training by these RUDSETIs.

• The Bank is continuing to sponsor education og girl students in the

villages served by the Bank under Laxmi Shiksha Protsahan Yojana

and so far provided scholarships to 1603 girl students under the

scheme.

• Under the Agriculture Debt Waiver & Debt Relief Scheme 2008, the

bank has granted debt waiver of Rs.76.94 crore covering 27547

farmers. Further, Bank has provided debt relief of Rs.52.28 crore

benefitting 20212 farmers.

NEW INITIATIVES AND THRUST— Corporate Social Responsibility

28