SIGNIFICANT ACCOUNTING POLICIES:

1) BASIS OF brPARATION:

The financial statements are brpared following the going concern concept, on historical cost basis unless otherwise stated and conform, in all material aspects, to the Generally Accepted Accounting Principles (GAAP) in India, which encompasses applicable statutory provisions, regulatory norms brscribed by the Reserve Bank of India (RBI), Accounting Standards (AS) and pronouncements issued by The Institute of Chartered Accountants of India (ICAI) and accounting practices brvalent in the banking industry in India. In respect of foreign offices/branches, statutory provisions and accounting practices brvailing in the respective foreign countries are complied with, except as specified elsewhere.

2) USE OF ESTIMATES:

The brparation 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 date of the financial statements and the reported income and expenses for the reporting period. Management believes that the estimates used in the brparation of the financial statements are prudent and reasonable. However actual results can differ from estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3) REVENUE RECOGNITION:

(a) Income/Expenditure is recognised on accrual basis, unless otherwise stated. In respect of foreign offices, income/expenditure is recognised as per local laws of host country.

(b) Interest income is recognised on time proportion basis except (i) interest on Non-performing Assets, which is recognised on realisation, in terms of the RBI guidelines.

(c) Commission on issue of Bank Guarantee and Letter of Credit is accrued over the tenure of BG/LC.

(d) All other Commission and Exchange, Brokerage, Fees and other charges are recognised as income on realisation.

(e) Income (other than interest) on investments in "Held to Maturity" category acquired at a discount to the face value, is recognised as follows:

1. On Interest bearing securities, it is recognised only at the time of sale/ redemption.

2. On zero-coupon securities, it is accounted for over the balance tenor of the security on a constant yield basis.

(f) Profit or loss on sale of investments is recognised in the Profit and Loss account. However, in case of profit on sale of investments under 'Held to Maturity' category, an equivalent amount, net of taxes and amount required to be transferred to Statutory Reserves, is appropriated to 'Capital Reserve Account'.

 (g) Dividend is recognised when the right to receive the dividend is established.

(h) Interest on Income-tax refund is recognised in the year of passing of assessment order.

(i) The recoveries made from NPA accounts are appropriated first towards unrealised interest/income debited to borrowers accounts, expenditure/out of pocket expenses incurred, then principal dues and lastly towards uncharged interest.

4) ADVANCES:

(a) Advances are classified into "Performing" and "Non-Performing Advances" (NPAs) in accordance with the applicable regulatory guidelines.

(b) NPAs are further classified into Sub-Standard, Doubtful and Loss Assets in terms of applicable regulatory guidelines.

(c) In respect of domestic branches, Provisions in respect of NPAs is made as per policy of the bank particularly in accelerated provisioning for NPAs which is at the rate given as under

 (d) In respect of foreign branches, classification of advances as NPAs and provision in respect of NPAs is made as per the regulatory requirements brvailing at the respective foreign countries or as per guidelines applicable to domestic branches, whichever is stringent.

(e) Provisions in respect of NPAs, unrealised interest, ECGC claims settled, etc., are deducted from total advances to arrive at net advances as per RBI norms.

(f) In respect of Rescheduled/Restructured advances, provision is made for the diminution in the fair value of restructured advances measured in brsent value terms as per RBI guidelines. The said provision is reduced to arrive at Net advances.

(g) In case of financial assets sold to Asset Reconstruction Company (ARC) / Securitisation Company (SC), if the sale is at a price higher than the NBV, the surplus is retained and utilised to meet the shortfall/loss on account of sale of other financial assets to SC/ARC. If the sale is at a price below the net book value (NBV), (i.e. outstanding less provision held) the shortfall is to be debited to the Profit and Loss account. However if surplus is available, such shortfall will be absorbed in the surplus. Any such shortfall arising due to sale of NPA on or after 26/02/2014 will be amortised over a period of two years if not absorbed in the surplus.

Excess provision arising out of sale of NPA's are reversed only when the cash received (by way of initial consideration only/or redemption of SRS/ PTC) is higher then the net book value (NBV) of the asset. Reversal of excess provision will be limited to the extent to which cash received exceeds the NBV of the asset.

(h) Provision for Standard assets, including restructured advances classified as standard, is made in accordance with RBI guidelines. In respect of foreign branches provision for Standard Assets is made as per the regulatory requirements brvailing at the respective foreign countries or as per guidelines applicable to domestic branches, whichever is stringent.

(i) Provision for net funded country exposures is made on a graded scale in accordance with the RBI guidelines.

5) FLOATING PROVISIONS

The bank has a policy for creation and utilisation of floating provisions. The quantum of floating provisions to be created is assessed at the end of each financial year. The floating provisions are utilised only for contingencies under extraordinary circumstances specified in the policy with prior permission of Reserve Bank of India or on being specifically permitted by Reserve Bank of India for specific purposes.

6) DEBIT/CREDIT CARD REWARD POINTS:

Provision for reward points in relation to the debit card holders of the bank is provided for on actuarial estimates and Provision for Reward Points on Credit cards is made based on the accumulated outstanding points.

7) INVESTMENTS:

A. Transactions in Government Securities are recognised on Settlement Date and all other Investments are recognised on trade date.

B. Investments are categorised under 'Held to Maturity', 'Held for Trading' and 'Available for Sale' categories as per RBI guidelines. For the purpose of disclosure of investments in India, these are classified, in accordance with RBI guidelines & Banking Regulation Act 1949, under six classification viz. Government Securities, Other Approved Securities, Shares, Debentures and Bonds, Investment in Subsidiaries and Associates and Others. In respect of investments outside India, these are classified, in accordance with RBI guidelines, under three categories viz. Government Securities (including local authorities), Subsidiaries/ Joint Ventures abroad and Other Investments.

(a) Basis of categorisation

Categorisation of an investment is done at the time of its acquisition.

i) Held to Maturity

These comprise investments that the Bank intends to hold till maturity. Investments in subsidiaries, joint ventures and associates are also categorised under Held to Maturity.

ii) Held for Trading

This comprise investments acquired with the intention to trade by taking advantage of short term price/interest rate movements. These are intended to be traded within 90 days from the date of purchase.

iii) Available for Sale

This comprise investments which do not fall under in "Held to Maturity" or "Held for Trading" classification.

(b) Acquisition Cost of Investment

i) Brokerage, commission, securities transaction tax etc. paid on acquisition of equity investments are included in cost.

ii) Brokerage, commission, broken period interest paid/ received on debt investments is treated as income/expense and is excluded from cost/ sale consideration.

iii) Brokerage and Commission received on subscription of investments is credited to Profit and Loss Account.

iv) Cost of investments is determined at weighted average cost method.

(c) Method of valuation

Investments in India are valued in accordance with the RBI guidelines and investments held at foreign branches are valued at lower of the value as per the statutory provisions brvailing at the respective foreign countries or as per RBI guidelines issued from time to time.

Treasury Bills and Commercial Papers are valued at carrying cost.

i) Held to Maturity

1 Investments included in this category are carried at their acquisition cost, net of amortisation, if any. The excess of acquisition cost, if any, over the face value is amortised over the remaining period to maturity using constant yield method. Such amortisation of brmium is adjusted against income under the head "interest on investments".

2 Investments in subsidiaries, joint ventures and associates (both in India and abroad) are valued at historical cost except for investments in Regional Rural Banks, which are valued at carrying cost (i.e. book value). A provision is made for diminution, other than temporary, for each investment individually.

ii) Held for Trading / Available for Sale

1 Investments under these categories are individually valued at the market price or fair value determined as per Regulatory guidelines and only the net debrciation in each classification for each category is provided for and net apbrciation is ignored. On provision for debrciation, the book value of the individual securities remains unchanged after marking to market.

2 For the purpose of valuation of quoted investments in "Held for Trading" and "Available for Sale" categories, the market rates / quotes on the Stock Exchanges, the rates declared by Primary Dealers Association of India (PDAI) / Fixed Income Money Market and Derivatives Association (FIMMDA) are used. Investments for which such rates/quotes are not available are valued as per norms laid down by RBI, which are as under:

Government Securities on Yield to Maturity basis

Other Approved Securities on Yield to Maturity basis

Equity Shares, PSU and Trustee shares At break up value as per the latest Balance Sheet (not more than 18 months old), otherwise Re.1 per company.

Preference Shares on Yield to Maturity basis

PSU Bonds on Yield to Maturity basis

Units of Mutual Funds at the latest repurchase price/NAV declared by the Fund in respect of each scheme

Venture Capital Funds (VCF) Declared NAV or break up NAV as per audited financials which are not more than 18 months old. If NAV/audited financials are not available for more than 18 months then at Re. 1/- per VCF.

Security Receipts At NAV as declared by Securitisation Companies

d) Transfer of Securities between Categories

The transfer of securities between categories is carried out at the least of acquisition cost / book value/ market value on the date of transfer. The debrciation, if any, on such transfer is fully provided for.

(e) Non performing Investments (NPIs) and valuation thereof

1 Investments are classified as performing and non-performing, based on the guidelines issued by the RBI in case of domestic offices and respective regulators in case of foreign offices.

2 In respect of non performing investments, income is not recognised and provision is made for debrciation in value of such securities as per RBI guidelines.

(f) Repo / Reverse Repo

The securities sold and purchased under Repo/ Reverse repo are accounted as Collateralised lending and borrowing transactions. However, securities are transferred as in 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 Account is classified as Borrowings and balance in Reverse Repo account is classified as Balance with Banks and Money at Call & Short Notice.

8) Derivative

The Bank brsently deals in Forex Forward Contracts, interest rate, and currency derivatives. The interest rate derivatives dealt with by the Bank are Rupee Interest Rate Swaps, Foreign Currency Interest Rate Swaps, Forward Rate Agreements and Interest Rate Futures. Currency Derivatives dealt with by the Bank are Options, Currency Swaps and Currency Futures. Based on RBI guidelines, Derivatives are valued as under:

(a) The hedge/non hedge (market making) transactions are recorded separately.

(b) Income/expenditure on hedging derivatives are accounted on accrual basis

(c) Forex forward contracts are Marked to market and the resultant gains and losses are recognized in the profit and loss account

(d) Interest Rate Derivatives and currency derivatives other than exchange traded derivatives for trading purpose are marked to market and the resulting losses, if any, are recognised in the Profit & Loss account. Net Profit if any, is ignored.

(e) Exchange Traded Derivatives entered into for trading purposes are valued at brvailing market rates based on rates given by the Exchange and the resultant gains and losses are recognized in the Profit and Loss Account

(f) Gains/losses on termination of the trading swaps are recorded on the termination date as income/ expenditure. Any gain/loss on termination of hedging swaps are deferred and recognised over the shorter of the remaining contractual life of the swap or the remaining life of the designated assets/liabilities.

(g) Option fees/brmium is amortised over the tenor of the option contract.

9) FIXED ASSETS:

(a) Fixed assets are stated at historic cost, except in the case of assets which have been revalued, which is stated at revalued amount. The apbrciation on revaluation is credited to Revaluation Reserve.

(b) Cost includes cost of purchase and all expenditure such as site brparation, installation costs, professional fees etc. incurred on the asset before it is put to use. Subsequent expenditure incurred on assets put to use is capitalised only when it increases the future benefits from such assets or their functioning capability.

(c) Cost of brmises includes cost of land, both freehold and leasehold.

10) DEbrCIATION ON FIXED ASSETS:

a) Debrciation on assets is charged on the Written Down Value at the rates determined by the Bank, except in respect of computers where it is calculated on the Straight Line Method, at the rates brscribed by RBI

b) In respect of additions, debrciation is provided for the full year, irrespective of the date on which the assets were put to use whereas, debrciation is not provided in the year of sale/disposal of an asset.

c) Debrciation on the revalued portion of assets is adjusted against the Revaluation Reserve.

d) Where the cost of land and building cannot be separately ascertained, debrciation is provided on the composite cost, at the rate applicable to buildings.

e) Premium paid on leasehold land is amortised over the period of lease.

f) Debrciation on assets in respect of domestic operations are provided as under:

g) Debrciation on fixed assets outside India is provided based on the estimated useful life determined by each centre.

11) TRANSACTIONS INVOLVING FOREIGN EXCHANGE:

Transactions involving foreign exchange are accounted for in accordance with AS 11, "The Effect of Changes in Foreign Exchange Rates".

a) Translation in respect of Integral Foreign operations:

Foreign currency transactions of Indian branches have been classified as integral foreign operations and foreign currency transactions of such operations are translated as under:

i) Foreign currency transactions are recorded on initial recognition in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the daily closing rate as available from Cogencis/ Reuter's page.

ii) Foreign currency monetary items are reported using the Foreign Exchange Dealers Association of India (FEDAI) closing spot rates.

iii) Foreign currency non-monetary items, which are carried in terms of historical cost, are reported using the exchange rate at the date of the transaction.

iv) Contingent liabilities denominated in foreign currency are reported using the FEDAI closing spot rates.

v) Outstanding foreign exchange spot and forward contracts held for trading are revalued at the exchange rates notified by FEDAI for specified maturities, and the resulting profit or loss is recognised in the Profit and Loss account.

vi) Outstanding Foreign exchange forward contracts which are not intended for trading are valued at the closing spot rate as advised by FEDAI. The brmium or discount arising at the inception of such a forward exchange contract is amortised as expense or income over the life of the contract.

vii) Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded are recognised as income or as expense in the period in which they arise.

viii) Gains/Losses on account of changes in exchange rates of open position in currency futures trades are settled with the exchange clearing house on daily basis and such gains/losses are recognised in the Profit and Loss account.

b) Translation in respect of Non-Integral Foreign operations:

Transactions and balances of foreign branches are classified as non-integral foreign operations and their financial statements are translated as follows:

i) Assets and Liabilities (monetary and non­monetary as well as contingent liabilities) are translated at the closing rates notified by FEDAI.

ii) Income and expenses are translated at the quarterly average closing rates notified by FEDAI.

iii) All resulting exchange differences are accumulated in a separate account 'Foreign Currency Translation Reserve' till the disposal of the net investments by the bank in the respective foreign branches.

iv) The Assets and Liabilities of foreign offices in foreign currency (other than local currency of the foreign offices) are translated into local currency using spot rates applicable to that country.

12) EMPLOYEE BENEFITS:

i. Short Term Employee Benefit:

The undiscounted amount of short-term employee benefits, such as medical benefits etc. which are expected to be paid in exchange for the services rendered by employees are recognised during the period when the employee renders the service.

ii. Post Employment Benefit: A. Defined Benefit Plan

a) Gratuity

The Bank provides gratuity to all eligible employees. The benefit is in the form of lump sum payments to vested employees on retirement, on death while in employment, or on termination of employment, for an amount equivalent to 15 days basic salary payable for each completed year of service, subject to a maximum brscribed as per The Payment of Gratuity Act 1972 or BOI (Employee) Gratuity Regulation whichever is higher. Vesting occurs upon completion of five years of service. The Bank makes periodic contributions to a fund administered by trustees based on an independent external actuarial valuation carried out annually.

b) Pension

The Bank provides pension to all eligible employees. The benefit is in the form of monthly payments as per rules and payments to vested employees on retirement, on death while in employment, or on termination of employment. Vesting occurs at different stages as per rules. The Bank makes monthly contribution to the pension fund at 10% of pay in terms of BOI (Employees) Pension regulations. The pension liability is reckoned based on an independent actuarial valuation carried out annually and Bank makes such additional contributions periodically to the Fund as may be required to secure payment of the benefits under the pension regulations.

B. Defined Contribution Plan:

a) Provident Fund

The Bank operates a Provident Fund scheme. All eligible employees are entitled to receive benefits under the Bank's Provident Fund scheme. The Bank contributes monthly at a determined rate (currently 10% of employee's basic pay plus eligible allowance). These contributions are remitted to a trust established for this purpose and are charged to Profit and Loss Account. The bank recognises such annual contributions as an expense in the year to which it relates.

b) Pension

All Employees of the bank, who have joined from 1st April, 2010 are eligible for contributory pension. Such employees contribute monthly at a brdetermined rate to the pension scheme. The bank also contributes monthly at a brdetermined rate to the said pension scheme. Bank recognises its contribution to such scheme as expenses in the year to which it relates. The contributions are remitted to National Pension System Trust. The obligation of bank is limited to such brdetermined contribution.

iii. Other Long term Employee Benefit:

a) Leave encashment benefit, which is a defined benefit obligation, is provided for on the basis of an actuarial valuation in accordance with AS 15 - Employee Benefits.

b) Other employee benefits such as Leave Fare Concession, Milestone award, resettlement benefits, Sick leave etc. which are defined benefit obligations are provided for on the basis of an actuarial valuation in accordance with AS 15 - Employee Benefits.

c) In respect of overseas branches and offices, the benefits in respect of employees other than those on deputation are valued and accounted for as per laws brvailing in the respective territories.

13) EARNINGS PER SHARE:

Basic and Diluted earnings per equity share are reported in accordance with AS 20 "Earnings per share". Basic earnings per equity share are computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the period.

14) TAXES ON INCOME:

a) Income Tax comprises the current tax provision and net change in deferred tax assets or liabilities during the year, in accordance with AS 22 "Accounting for Taxes on Income". Current taxes are determined in accordance with the provisions of Accounting Standard 22 and tax laws brvailing in India after taking into account taxes of foreign offices, which are based on the tax laws of respective jurisdiction. Deferred tax adjustments comprise of changes in the deferred tax assets or liabilities during the period.

b) Deferred Tax is recognised subject to consideration of prudence in respect of items of income and expenses those arise at one point of time and are capable of reversal in one or more subsequent years.

c) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

d) Deferred tax assets are recognised and reassessed at each reporting date, based upon management's judgement as to whether realisation is considered reasonably certain. Deferred tax assets are recognised on carry forward of unabsorbed debrciation and tax losses, only if there is virtual certainty that such deferred tax assets can be realised against future profits.

15) IMPAIRMENT OF ASSETS:

"Impairment losses, if any on Fixed Assets (including revalued assets) are recognised and charged to Profit and Loss account in accordance with AS 28 "Impairment of Assets".However, an impairment loss on a revalued asset is recognised directly against any revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount held in the revaluation surplus for that same asset."

16) PROVISIONS, CONTINGENT LIABLITIES AND

CONTINGENT ASSETS:

As per AS 29 "Provisions, Contingent Liabilities and Contingent Assets", the Bank recognises provisions only when it has a brsent obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefit is remote.

Contingent Assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

17) SHARE ISSUE EXPENSES:

Share issue expenses are charged to the Profit and Loss Account in the year of issue of shares

All figures are in f Crores unless specifically stated Figures in Brackets relate to brvious year

NOTES FORMING PART OF ACCOUNTS

1. During the year, the Bank has made brferential allotment of 15,16,43,949 Equity Shares of f10 each in accordance with the regulation 76(1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, the details of which are as under:

2. During the year, the Bank has received f1150 from the Government of India and f153.65 from the Life Insurance Corporation of India towards share application money for subscription to equity shares on brferential basis, the allotment of which has been made on 4th May, 2016. The same is treated as CET 1 capital for CRAR purpose in accordance with RBI letter No.DBR. No.BP.12254/21.01.002/2015-16 dated 30th March, 2016 and letter No.DBR.No.BP.12711/21.01.002/2015-16 dated 6th April, 2016.

3. Balancing of Subsidiary Ledger Accounts, confirmation/ reconciliation of balances with foreign branches, Inter­office accounts, NOSTRO Accounts, Suspense, Drafts Payable, Clearing Difference, etc. is in progress on an on-going basis. Pending final clearance/adjustment of the above, the overall impact, if any, on the Financial Statements, in the opinion of the management, is not likely to be significant.

4. During the year, the Bank has changed its accounting policy of provisioning in respect of NPAs classified as doubtful category (Secured Portion) - one year to three years, from 60% (accelerated provision) to 40% (minimum provision) of net outstanding advances which is the regulatory minimum. Had the earlier accounting policy been followed, the provision for NPAs would have been higher by f 2835.68 with consequential increase in Net Loss (net of tax) by f1854.31 for the year.

5. Other Notes

a. Income Tax:

(i) Claims against the Bank not acknowledged as debt under contingent liabilities (Schedule 12) include disputed income tax/interest tax liabilities of Rs. 555.07 (brvious year Rs. 961.37) for which no provision is considered necessary based on various judicial decisions in respect of past assessments on such disputes. Payments/adjustments against the said disputed dues are included under Other Assets (Schedule 11).

(ii) Provision for income tax for the year is arrived at after due consideration of the various judicial decisions on certain disputed issues.

(iii) During the year, the Bank has made Provision for Taxation pertaining to earlier years of f308.63 (brvious yearwrite back of Rs.483.55) based on orders of Income Tax Authorities/review of estimates based on the expert's advice.

b. Pursuant to Reserve Bank of India Letter No. DBR:BP:17252:21.04.048:2014-15 dated 13th May, 2015, the bank has amortized the shortfall arising out of sale of financial assets to ARCs, sold between 26th February, 2014 and 31st March, 2015, over a period of 8 quarters from the quarter in which the asset was sold. Consequently, the bank has charged Rs.369.49 to Profit & Loss Account for the year and the balance amount of Rs.214.24 is being carried forward to be charged to Profit & Loss Account of future periods.

c. In compliance to the RBI Letter No. DBR. No.BP.13018/21.04.048/2015-16 dated 12th April, 2016, the Bank has provided a sum of Rs.165.46 being 7.5% of existing outstanding of Rs.2206.11 as on 31.03.2016 under food credit availed by Government of Punjab. Additional provision of 7.5% shall be made in June 2016 on the amount outstanding as on that date, as directed by the RBI.

d. Pursuant to the Asset Quality Review (AQR) conducted by the RBI under section 35 of the Banking Regulations Act, 1949, the Bank has reclassified/made additional provisions in respect of certain advances.

e. Pursuant to RBI Circular No. DBR.BP.BC. No.31/21.04.018/2015-16 dated July 16, 2015, the Bank has included deposits placed with NABARD/SIDBI and NHB, on account of shortfall in lending to priority sector, under 'Other Assets'. Earlier, these were included under 'Balance with Banks & Money at Call & Short Notice'. Interest income on these deposits has been included under 'Interest Earned-Others'. Earlier, such interest income was included under 'Interest Earned - Interest on Balances with Reserve Bank of India & Other Inter Bank Funds'.

f. During the year, the Bank, undertook a thorough review of its pending income tax assessments based on the expert advice of Bank's Tax Consultant and has re-worked provision for Current Tax liability for the past financial years on various issues which inter-alia includes provision for Bad & Doubtful Debts, Bad Debts written off, treatment of profit of foreign branches and disallowance u/s 14A of the Income Tax Act, 1961, which has resulted into additional provision of f 308.63 towards current tax liability of earlier years. Consequent to such review, the bank does not expect to have any carry forward losses/unabsorbed debrciation as per Income Tax Act, 1961, requiring testing of virtual certainty.

g. Based on the thorough review as mentioned in Para h above, the Bank has estimated future taxable income against which timing difference arising on account of provisions for Bad & Doubtful Debts can be realised and accordingly during the year, the Bank has recognised deferred tax assets of Rs. 3172.65 on such timing difference based on reasonable certainty of availability of future taxable income against which such deferred tax assets can be realised.

h. Pursuant to RBI Letter No. DBS:CO:SSM:(B OI)14657:13.37.001:2014-15 dated 20th May, 2015, the Bank had deferred provision of Rs. 709.31 in respect of certain NPAs and loss of Rs. 403.21 on sale of certain NPAs from March 2015, to be amortized over a period of 3 quarters commencing from June 2015. Accordingly, during the year f709.31 was amortised towards such NPAs and f403.21 has been recognised as loss on sale of such NPAs.

i. In accordance with UDAY (Ujwal Discom Assurance Yojana) Scheme of Government of India, Ministry of Power for operational and financial turnaround of Power Distribution Companies (DISCOM) during FY 2015­16, the bank has subscribed to Non-SLR SDL Bonds of Government of Rajasthan (GOR), Government of

Haryana (GOH) and Government of Utt r Pradesh (GoUP) amounting to Rs. 2198.72, Rs. 881.78 and Rs. 452.15 respectively. Pursuant to the RBI instructions, the bank has made following provisions:

i. Rs.109.14 in respect of loans/bonds not envisaged to be converted into State Development Loans (SDLs) by 31st March 2017 being 15% of Rs. 727.60.

ii. Rs. 24.11 towards diminution in the fair value of loans/ bonds.

j. Profit on sale of Investments held under "Held to Maturity" category amounting to Rs.243.86 (brvious year Rs.179.33) has been taken to the Profit & Loss Account and thereafter an amount of Rs.159.47 (brvious year Rs. 88.78) has been appropriated to the Capital Reserve, net of taxes and transfer to Statutory Reserve under section 17 of the Banking Regulation Act, 1949.

10. Previous year's figures have been regrouped/rearranged, wherever considered necessary.