1

2

3

CHAIRMAN & MANAGING

DIRECTOR’S STATEMENT

Dear Shareholders,

On behalf of the Board of Directors, theManagement and employees of the Bank,I welcome you all to the 14th Annual GeneralMeeting of the Bank. At the outset, I take thisopportunity to express my gratitude to each ofour esteemed shareholders for extending theirunstinted support all these years.

The financial year 2015-16 has been a year full of challengesin both global and Indian economy. Here, I would like toenumerate briefly upon the macro-economic environment thatprevailed during the year as it had strong implications for thebanking sector’s performance.

1. GLOBAL ECONOMY :

The world GDP growth decelerated to 3.1% in 2015 from3.4% in 2014. In 2016, the IMF expects global uncertaintiesto prevail and projects a modest recovery in the world’s GDPgrowth at 3.2%. This will be primarily driven by emergingmarkets & developing economies. Uncertainty has increased& risks to weaker growth scenarios are becoming moretangible. However, decline in oil prices may boost demandin oil-importing countries as prices are expected to remainlower for longer time.

Presently, recovery of global economy remains too slow,fragile, with the risk that persistent low growth can havedamaging effects on the social and political fabric of manycountries. Growth in advanced economies will be hamperedby weak demand on account of unresolved crisis legacies,as well as unfavourable demographics and low productivitygrowth.

2. INDIAN ECONOMY:

India’s economic growth is projected to grow by 7.6% in FY16,However, due to slowdown in public investment, stressedcorporate balance sheets and declining exports, growth couldbe hampered by these factors. GDP grew at an annual rateof 7.3% in Dec’15 quarter as compared to 7.4% in Sep’15quarter.

Consumer price inflation (CPI) has evolved along the RBI’sprojected trajectory for Jan’16 and the target was met with amarginal undershoot. However, in the month of Apr’16, CPIinflation rose to a three-month high of 5.4% due to a sharprise in food prices. Stability in inflation is expected to continuein this year aided by stable oil prices in the near term andthe overall positive sentiment in the domestic market in lieuof expectations of a normal monsoon. The RBI expects CPI

+vªÉIÉ B´ÉÆ |ɤÉÆvÉ ÊxÉnäù¶ÉEò

EòÉ ´ÉHò´ªÉ

Ê|ÉªÉ ¶ÉäªÉ®vÉÉ®úEòÉä,

¨Éé ¤ÉéEò Eäò ÊxÉnäù¶ÉEò ¨ÉÆb÷±É, |ɤÉÆvÉxÉ +Éè®ú Eò¨ÉÇSÉÉÊ®úªÉÉå EòÒ+Éä®ú ºÉä ¤ÉéEò EòÒ 14´ÉÓ ´ÉÉ̹ÉEò +É¨É ºÉ¦ÉÉ ¨Éå +É{ÉEòɽþÉÌnùEò º´ÉÉMÉiÉ Eò®úiÉÉ ½ÚÆþ* ºÉ´ÉÇ|ÉlɨÉ, ¨Éé

4

inflation to decelerate modestly and remain around 5% during2016-17 with small variation.

Exports continued to decline for the seventeenth month inApr’16 by 6.7% due to falling world prices for commodities,including metal and petroleum products. It is expected toremain weak due to continued moderation in growth in Chinaand the general slowdown in emerging market economies.Current account deficit (CAD) fell further to 1.3% of the GDPor its value stood at US$ 7.1 billion in the third quarter endingDec’15, which is lower than US$ 8.7 billion or 1.7% of GDPin the preceding quarter.

Growth in the Index of Industrial Production (IIP) stood at0.1% in Mar’16 as compared to 2.5% in the year ago periodand 1.99% in the preceding month. The poor performanceof the index was on the back of contraction in bothmanufacturing and mining sector output.

Improvement in consumption demand in both urban and ruralareas is expected to drive the growth in manufacturing outputwhile capacity additions and govt. initiatives are likely to givea boost to the electricity and mining sectors. The Seventh PayCommission awards are expected to further bolster urbandemand in FY17. Further, prospects of normal monsoon aftertwo consecutive droughts are expected to prop up ruraldemand.

The uneven recovery in economic growth in FY16 is likely tostrengthen gradually in FY17, assuming a normal monsoondue to the receding El Nino effect and also, a boost in privateconsumption arising out of the implementation of the 7th PayCommission the One Rank One Pension (OROP) and thecontinuing monetary policy accommodation. In the light ofthese, the RBI has projected the Gross Value Added (GVA)growth for FY17 at 7.6% with risks evenly balanced out. AsianDevelopment Bank and IMF have forecast India’s growth at7.4% and 7.5% respectively in FY17.

3. BANKING:

For the fortnight ended 29th Apr’16, credit growth stood at 9.2%as compared to 10.5% in the same fortnight a year ago.Aggregate deposits Y-o-Y growth for SCBs as a whole declinedto 9.3% during the same fortnight as compared to 12.3% inthe year ago period. In the current financial year (FY17),marginal improvement in consumer sentiments is expected onaccount of normal monsoon, implementation of 7th PayCommission and OROP. These will provide a fillip to creditdemand as the industry will be on expansionary mode on theback of new orders, including exports.

4. BANK'S PERFORMANCE :

I would now like to touch upon the highlights of your Bank’sperformance for the financial year 2015-16:

¤ÉéEò +ɶÉÉÎx´ÉiÉ ½èþ ÊEò ºÉÒ{ÉÒ+É

5

4.1 Business Growth

Total business of your Bank reached a level of`358,352 crore as on 31st Mar’16 from ` 346,519 croreas on 31st Mar’15; showing a Y-o-Y growth of 3.41%.

Total deposits of the Bank went up by 3.73% to`200,644 crore as on 31st Mar’16 from `193,424 croreyear ago. Gross credit of the Bank increased to`157,707 crore from `153,095 crore last year. On aY-o-Y basis, it increased by 3.01%.

SB deposits registered a Y-o-Y growth of 11.72% andstood at `62,514 crore as on 31st Mar ’16, andconstituted 31.49% of aggregate deposits. Your Bankcontinued to give importance to CASA depositsmobilization and special emphasis was given onSavings Bank A/c opened per branch per day.

CASA share to aggregate deposits increased to36.28% as on 31st Mar ’16 from 33.75% in thepreceding fiscal year. Total CASA outstanding duringFY16 stood at `72,041 crore, thus clocking a Y-o-Ygrowth of 10.98%.

4.2 Profitability

The operating profit of the Bank stood at `4134 croreduring FY16 compared to`4460 crore during the sameperiod a year ago because of lower net interestincome.

Fee income of the Bank during FY16 increased Y-o-Yby 7.30% and stood at `1220 crore as against `1137crore last fiscal year.

The Cost of deposits ratio came down from 7.11% inFY15 to 6.61% in FY16.

Net Interest Margin (NIM) stood at 2.65% in FY16 asagainst 3.10% during FY15.

Capital Adequacy Ratio improved to 11.02% as on31st March 2016 under Basel III norms as comparedto 10.45% as on 31st March, 2015.

The Bank posted a net loss of `743.31 crore in FY16due to higher provisions that increased by 27.05%during the year.

4.3 Asset Quality

The Gross NPA to Gross Advances of your Bank stood at9.76% and Net NPA to Net Advances stood at 6.76% as on31st March 2016. The Provision Coverage Ratio was at48.22% as on 31st March 2016.

4.1 ´ªÉ´ÉºÉÉªÉ ´ÉÞÊrù

31 ¨ÉÉSÉÇ, 2016 EòÉä ªÉlÉÉκlÉÊiÉ ¤ÉéEò EòÉ EÖò±É ´ªÉ´ÉºÉɪÉ31 ¨ÉÉSÉÇ 2015 EòÉä ªÉlÉÉκlÉÊiÉ Eäò `346519 Eò®úÉäc Eäò ºÉÉ{ÉäIɴɹÉÇ-nù®-´É¹ÉÇ +ÉvÉÉ®ú {É®ú 3.41% EòÒ ´ÉÞÊrù nù¶ÉÉÇiÉä ½ÖþB ¤ÉgøEò®`3,58,352 Eò®úÉäc Eäò ºiÉ®ú {É®ú {ɽÖÆþSÉ MɪÉÉ*¤ÉéEò EòÒ EÖò±É VɨÉÉ ®úÉʶɪÉÉÆ 3.73 %EòÒ ´ÉÞÊrù nù¶ÉÉÇiÉä ½ÖþB BEò´É¹ÉÇ {ÉÚ´ÉÇ Eäò `1,93,424 Eò®úÉäc ºÉä ¤ÉgøEò® ªÉlÉÉκlÉÊiÉ31 ¨ÉÉSÉÇ, 2016ú EòÉä `2,00,644 Eò®úÉäc ½þÉä MÉ

6

4.4 Dividend

The Board of Directors of your Bank have not recommendedany dividend for FY16.

4.5 Offices & Branches

As on 31st Mar’16, the Bank is having 3209 domesticbranches and one overseas branch at Hong Kong. Out of3209 domestic branches, 1307 are at Rural, 720 atSemi-urban, 656 at Urban and 526 at Metropolitan Centres.A total of 108 new branches have been opened during thefinancial year 2015-16, out of which 50 are at Rural, 31 atSemi Urban, 20 at Urban and 7 at Metro centers. During theyear, six branches were merged. During the same period, atotal of 36 branches have been opened in unbanked areasthereby complying with the RBI norms.

4.6 Retail Credit

Your Bank’s retail credit portfolio stood at `25,894 crore ason 31st March, 2016 as against `21,723 crore a year ago,thereby registering a Y-o-Y growth of 19.20%. The share ofretail credit portfolio against the gross credit has increasedfrom 14.19% in FY15 to16.42% in FY16. Housing Loan, a keyconstituent under Retail Credit grew at a pace of 27.39%.

Going forward, the Bank is looking at a growth of 20% in theretail credit portfolio. Also, major thrust on loans having lowcapital requirement like housing loan, gold loan, etc will begiven. The Bank has also opened an additional 9 CentralizedRetail Banking Boutiques (CRBBs) at different centres duringFY16. Your Bank has now a total of 55 CRBBs spread overdifferent parts of the country catering to specified retail loansfor quick and hassle free disposal.

4.7 Priority SectorPriority sector advances of the Bank increased from`53,910 crore as on 31st March, 2015 to `62,695crore as on 31st March, 2016, thereby registeringY-o-Y growth of 16.30%. The Bank has surpassed thenorm of 40% of ANBC by reaching 42.69% of ANBCas on Mar’16.

Agriculture Credit reached a level of `26,827 croreas on 31st March, 2016 from `24,680 crore lastyear, registering Y-o-Y growth of 8.70%. Here again,the Bank has achieved more than the 18% of ANBCnorm.

4.8 Corporate Social Responsibility

During the financial year 2015-16, your Bank has spent a sumof `1099.10 lacs under CSR activity that included an amountof `210 lacs towards Swachch Bharat Kosh. We have also

4.4 ±ÉɦÉÉƶÉ

+É{ÉEäò ¤ÉéEò Eäò ÊxÉnäù¶ÉEò ¨ÉÆb÷±É xÉä Ê´ÉkÉÒªÉ ´É¹ÉÇ 2015-16 ½äþiÉÖ ÊEòºÉÒ±ÉɦÉÉÆ¶É EòÒ ºÉƺiÉÖÊiÉ xɽþÓ EòÒ ½èþ*

4.5 EòɪÉÉÇ±ÉªÉ B´ÉÆ ¶ÉÉJÉÉBÆ

ªÉlÉÉκlÉÊiÉ 31 ¨ÉÉSÉÇ 2016 EòÉä ¤ÉéEò EòÒ 3209 PÉ®äú±ÉÚ ¶ÉÉJÉÉBÆ B´ÉƽþÉÆMÉEòÉÆMÉ ¨Éå BEò Ê´Énäù¶ÉÒ ¶ÉÉJÉÉ ½èþ* 3209 PÉ®äú±ÉÚ ¶ÉÉJÉÉ+Éå ¨Éå ºÉä 1307OÉɨÉÒhÉ, 720 +vÉÇ-¶É½þ®úÒ, 656 ¶É½þ®úÒ B´ÉÆ 526 ¨É½þÉxÉMÉ®úÒªÉ EäòxpùÉå ¨Éå½éþäþ* Ê´ÉkÉÒªÉ ´É¹ÉÇ 2015-16 Eäò nùÉè®úÉxÉ 108 xÉ

7

effected scholarship for girl child in lead districts and schemefor providing electric fans in govt. schools in lead districts. Adonation of `817 lacs was made to All Bank RuralDevelopment Trust for organising skill developmentprogrammes for unemployed rural youths & imparting financeliteracy to the rural masses.

4.9 Financial Inclusion (F.I.)

Your Bank remains committed to implementation of FinancialInclusion initiatives. It has successfully achieved all annualtargets set under FI. Your Bank has achieved full coverageof the allotted 4580 Sub-Service Areas (SSAs) which hasbeen completed by deploying 4355 Bank Mitras and coveringthe remaining 225 SSAs through branches.

4.10 Progress under PMJDY & Social Security Schemes

A total of 44.24 lacs accounts has been opened underPMJDY having outstanding balance of `461.12 croreas on 31st March 2016.

Since its inception, the Bank has mobilized 0.54 lacproposals under Atal Pension Yojana (APY) as on31.03.2016 out of which monthly installment of APYhas been remitted to the PFRDA for 0.37 laccustomers involving an amount of `170.89 lac up to31.03.2016.

Under PMSBY, insurance premium has been remittedto insurer for 18.14 lac customers involving anamount of `2.18 crore and under PMJJBY, it stoodat 5.77 lac customers for an amount of `16.69 croreup to 31.03.2016.

4.11 Overseas Presence

The Bank is having one overseas branch with a dealing roomat Hong Kong. The Business of Hong Kong branch hasincreased from `10,420 crore as on 31.03.2015 to `12,519crore as on 31.03.2016. The Hong Kong branch has earnedoperating profit of `119.31 crore and net profit of `44.63 crorein FY16.

4.12 Network & Delivery Channels

Your Bank has made live 185 onsite & 2 offsitee-lobbies, 97 mini e-lobbies, 54 cash deposit kiosks& 43 passbook printing kiosks covering 381 branchesin FY16.

The Bank has deployed 42 new ATMs in FY16 andtotal number of ATMs is 1212 as on 31.03.2016.

For opening of account, e-KYC facility has beenimplemented for customer verification without anypaper documents. Aadhaar Enabled Payment System

¨Éå ¤ÉÉʱÉEòÉ+Éå EòÉä UôÉjÉ´ÉÞÊkÉ näxÉä +Éè®ú +OÉhÉÒ ÊVɱÉÉå ¨Éå ºÉ®úEòÉ®úÒ ºEÚò±ÉÉå¨Éå ʤÉVɱÉÒ Eäò {ÉÆJÉä ±ÉMÉÉxÉä EòÒ ªÉÉäVÉxÉÉ EòÉä EòɪÉÉÇÎx´ÉiÉ ÊEòªÉÉ ½èþ* ¤Éä®úÉäVÉMÉÉ®úOÉɨÉÒhÉ ªÉÖ́ ÉÉ+Éå ½äþiÉÖ EòÉè¶É±É Ê´ÉEòÉºÉ EòɪÉÇGò¨ÉÉå Eäò +ɪÉÉäVÉxÉ B´ÉÆ OÉɨÉÒhÉVÉxÉiÉÉ EòÉä Ê´ÉkÉÒªÉ ºÉÉIÉ®úiÉÉ |ÉnùÉxÉ Eò®úxÉä Eäò ʱÉB +Éì±É ¤ÉéEò °ü®ú±Ébä÷´É±É{ɨÉå]õ ]Åõº]õ EòÉä `817 ±ÉÉJÉ EòÉ nùÉxÉ ÊnùªÉÉ MɪÉÉ ½èþ*

4.9 Ê´ÉkÉÒªÉ ºÉ¨ÉÉ´Éä¶ÉxÉ (B¡ò+É

8

(AEPS) for on-us & off-us transaction and RuPay ATMcard acceptance at all BC locations have been madeoperational.

Your Bank’s Internet Banking application has beenenhanced with new facilities like on-line generationof Transaction Password & ATM PIN, Card Hot listing,scheduling of Funds Transfer, IMPS, e-filing ofIncome tax returns, SBI e-pay integration, mobilebanking registration etc.

New facilities have been provided at branches viz.on-line PAN verification, instant fund transfer throughIMPS, introduction of Sovereign Gold Bond Scheme,SMS alert before debiting the account for chequespresented in CTS.

4.13 New InitiativesYour Bank has launched RuPay Platinum Debit Card(International) with higher limits of withdrawals atATMs (`1.00 lac per day), PoS and e-commerce site(`2.00 lac per day). Accidental insurance coverageof `2.00 lac is also provided by NPCI in this card.

Tie-up with Travel aggregator ‘GoIbibo’ for providingcash discounts at the time of booking train & flighttickets and hotel bookings by the customers of theBank in their portal through alternate deliverychannels of the Bank viz., debit cards and internetbanking.

EzeeWill: The Bank has tied up with M/s NSDLe-Governance Infrastructure Ltd. for providing the Willpreparation services, wherein the customers of theBank can get their ‘Will’ prepared online.

The Bank has signed a MoA with NSFDC for claimingrefinance, for on-lending to Scheduled Casteborrowers at concessional rate of interest havingfamily income less than double the poverty line, whichpresently is `98,000 p.a. for rural and `1,20,000 p.a.for urban areas.

4.14 Human Resource Development

Your Bank has continued with its focus on overalldevelopment of its human assets through manpower planning,knowledge enrichment, capacity building, promotion & careerprogression, staff welfare, etc. to maintain a high level ofproductivity. During FY16, 1349 officers/ employees havebeen recruited by the Bank, which includes 166 officers(including specialist officers), 620 clerks and 563 sub-ordinatestaff. This has helped to maintain the average age ofworkforce at 40.20 years as on 31st Mar’16, one of the lowestamongst public sector banks.

ºÉ¨ÉÌlÉiÉ ¦ÉÖMÉiÉÉxÉ |ÉhÉɱÉÒ (B

9

(®úÉEäò¶É ºÉä̀ öÒ)

(+vªÉIÉ B´ÉÆ |ɤÉÆvÉ ÊxÉnäù¶ÉEò)

+É{ÉEòÉ,

4.15 Awards & Accolades

Your Bank has been awarded “Second Prize” byMinistry of Rural Development, Govt. of India, foroverall performance of RSETIs. RSETI Sitapur hasalso been given “Second Prize” in individual category.

Your Bank has also been conferred runner up awardfor Best MSME Bank & Best Eco-Tech Savvy Bankin Mid-sized Bank category for the year 2015 byCIMSME.

The Bank has been ranked “above average” byBCSBI. Within 26 PSBs, your Bank has been ranked7th.

5. Way Forward & Future Strategies

Global agencies like IMF, World Bank, etc. have identifiedIndia as a bright spot as India is projected to overtake Chinaas the fastest growing economy in the near future. Therefore,with optimism surrounding India’s economic scenario, thebanking sector will also recover from its present state of tepidcredit growth and rising stressed assets. Enhanced spendingon infrastructure, speedy implementation of projects andcontinuation of reforms are expected to provide furtherimpetus to growth, suggesting that there will be robust needfor credit.

In the above backdrop, your Bank will adopt a three-prongedstrategy i.e. Recovery of overdues, achieving healthy growthin retail advances and mobilizing CASA deposits on liabilityside with emphasis on savings bank accounts.

At the end, I would like to place on record the valuablecontributions made by the Board. The Bank is also gratefulto the Reserve Bank of India, Government of India and otherregulatory authorities and financial institutions for theirco-operation, strong support and invaluable guidance. TheBoard also expresses its deep sense of appreciation for thecommitment shown by the employees in supporting the Bankin its performance in all fronts. Lastly, the Board places onrecord its sincere thanks to its valued customers andshareholders for their continued patronage.

I look forward to your continued support. Thank you.

Yours sincerely,

(Rakesh Sethi)(Chairman & Managing Director)

4.15 {ÉÖ®úºEòÉ®ú B´ÉÆ |ɶÉκiɪÉÉÆ

+É{ÉEäò ¤ÉéEò EòÉä +É®úºÉä]õÒ Eäò ºÉ¨ÉOÉ EòɪÉÇÊxɹ{ÉÉnùxÉ ½äþiÉÖ OÉɨÉÒhÉÊ´ÉEòÉºÉ ¨ÉÆjÉɱɪÉ, ¦ÉÉ®úiÉ ºÉ®úEòÉ®ú uùÉ®úÉ “ÊuùiÉÒªÉ {ÉÖ®úºEòÉ®”ú |ÉnùÉxÉÊEòªÉÉ MɪÉÉ* BEò±É ¸ÉähÉÒ ¨Éå +É®úºÉä]õÒ ºÉÒiÉÉ{ÉÖ®ú EòÉä ¦ÉÒ “ÊuùiÉÒªÉ{ÉÖ®úºEòÉ®” |ÉnùÉxÉ ÊEòªÉÉ MɪÉÉ ½èþ*+É{ÉEäò ¤ÉéåEò EòÉä ´É¹ÉÇ 2015 ½äþiÉÖ ºÉÒ+É

10

11

labour market reforms to increase labour market flexibility inthe formal sector will be crucial in achieving faster and moreinclusive growth. Higher levels of public infrastructureinvestment and government measures to reignite investmentprojects would help crowd-in private investment.

1.2 OVERVIEW OF GLOBAL ECONOMY & OUTLOOK

In 2015, global economic activity remained subdued. Growthin emerging market and developing economies, while stillaccounting for over 70% of global growth- declined for the fifthconsecutive year, though a modest recovery continued inadvanced economies. Three key transitions continue toinfluence the global outlook: (1) the gradual slowdown andrebalancing of economic activity in China away from investmentand manufacturing toward consumption and services, (2) lowerprices for energy and other commodities, and (3) a gradualtightening in monetary policy in the United States.

Overall, financial conditions within advanced economiesremained very accommodative. Prospects of a gradualincrease in policy interest rates in the United States as well asbouts of financial volatility amid concerns about emergingmarket growth prospects have contributed to tighter externalfinancial conditions, declining capital flows, and furthercurrency depreciations in many emerging market economies.

The baseline projection for global growth in 2016 is a modest3.2 percent, broadly in line with last year and a 0.2 percentagepoint downward revision relative to the January 2016 WorldEconomic Outlook Update. The recovery is projected tostrengthen in 2017 and beyond, driven primarily by emergingmarket and developing economies, as conditions in stressedeconomies start gradually to normalize. But uncertainty hasincreased and risks of weaker growth scenarios are becomingmore tangible. The fragile conjuncture increases the urgencyof a broad-based policy response to raise growth and managevulnerabilities.

Commodity markets pose two-sided risks. On the downside,further declines in commodity prices would worsen the outlookfor already-fragile commodity producers and increasing yieldson energy sector debt threaten a broader tightening of creditconditions. On the upside, the recent decline in oil prices mayprovide a stronger boost to demand by oil importers thancurrently envisaged, including consumers' possible perceptionthat prices will remain lower for longer.

1.3 BANKING OVERVIEW & OUTLOOK

The RBI, in its first bi-monthly policy 2016-17 announcement,has introduced a slew of measures to address the liquiditycondition in the banking system apart from reducing the reporate by 25 bps from 6.75% to 6.50%. The change in stance onmaintaining liquidity closer to a neutral position rather than adeficit and the halving of the policy rate corridor would alsoaid in softening interest rates, at least in the short term.

The reduction in small savings rates by the central governmenthas brought them at par with the term deposit rates offered bythe banks. This will help banks to reacquire accounts especiallythat of pensioners and new customers as well. Also, substantial

¤ÉgøÉxÉä ½äþiÉÖ ¤ÉÉVÉÉ®ú ºÉÖvÉÉ®ú iÉÒμÉiÉ®ú iÉlÉÉ +Éè®ú +ÊvÉEò ºÉ¨ÉÉ´Éä¶ÉÒ ́ ÉÞÊrù ½äþiÉÖ ÊxÉhÉÉǪÉEò½þÉåMÉä* ºÉÉ´ÉÇVÉÊxÉEò +ÉvÉÉ®ú¦ÉÚiÉ +´ÉºÉÆ®úSÉxÉÉ ÊxÉ´Éä¶É +Éè®ú ÊxÉ´Éä¶É {ÉÊ®úªÉÉäVÉxÉÉ+Éå EòÉä|É¤É±É ¤ÉxÉÉxÉä Eäò ºÉ®úEòÉ®úÒ ={ÉɪÉÉå ºÉä ÊxÉVÉÒ ÊxÉ´Éä¶É ¤ÉgøÉxÉä ¨Éå ú̈ ÉnùnùMÉÉ®ú ½þÉåMÉä*

1.2 ´ÉèÊ·ÉEò +lÉḈ ªÉ´ÉºlÉÉ Ê´É½ÆþMÉɴɱÉÉäEòxÉ B´ÉÆ oùι]õEòÉähÉ2015 ¨Éå ´ÉèÊ·ÉEò +ÉÌlÉEò MÉÊiÉÊ´ÉÊvɪÉÉÆ ¨ÉÆnù ®ú½þÓ* =¦É®úiÉä ¤ÉÉVÉÉ®ú +Éè®úÊ´ÉEòɺɶÉÒ±É +lÉḈ ªÉ´ÉºlÉÉ+ÉäÆ, VÉÉä +¦ÉÒ ¦ÉÒ ´ÉèÊ·ÉEò ´ÉÞÊrù Eäò 70% ºÉä +ÊvÉEò½èþÆ, ̈ Éå ±ÉMÉÉiÉÉ®ú {ÉÉÆSÉ´Éå ́ ɹÉÇ ̈ Éå ÊMÉ®úÉ´É]õ +É

12

(®úÉ榃 ` Eò®úÉäc÷ ¨Éå)/( Amount ` in Crore)

¨ÉÉSÉÇú ’14 ¨ÉÉSÉÇú ’15 ´ÉÞÊrù (%) ¨ÉÉSÉÇú ’16 ´ÉÞÊrù (%)(´É¹ÉÇ-nù®ú-´É¹ÉÇ) (´É¹ÉÇ-nù®ú-´É¹ÉÇ)

¨ÉÉxÉnÆùb÷ / Parameter Mar’14 Mar’15 Growth (%) Mar’16 Growth (%)(Y-O-Y)

EÖò±É ´ªÉ´ÉºÉÉªÉ / Total Business 331748 346519 4.45 358352 3.41EÖò±É VɨÉÉ®úÉʶɪÉÉÆ / Total Deposits 190843 193424 1.35 200644 3.73EÖò±É +ÊOÉ¨É / Total Advances 140905 153095 8.65 157707 3.01ºÉEò±É ÊxÉ´Éä¶É / Gross Investments 64348 55283 (14.08) 56034 1.36ÊxÉ´É±É ±ÉÉ¦É /Net Profit 1172 620.90 (47.02) (743.31) (219.71){ÉÊ®úSÉɱÉxÉMÉiÉ ±ÉÉ¦É / Operating Profit 4020 4460 10.93 4134 (7.31)]ÅäõËb÷MÉ ±ÉÉ¦É EòÉä UôÉäc÷Eò®ú {ÉÊ®úSÉɱÉxÉ ±ÉÉ¦É /Operating Profit Ex. Trading Profit 3733 3890 4.21 3720 (4.37)|ÉÉ´ÉvÉÉxÉ B´ÉÆ +ÉEòκ¨ÉEòiÉÉBÆ /Provisions & Contingencies 2848 3839 34.77 4877 27.05EÖò±É +ÉªÉ / Total Income 20913 21712 3.82 20795 (4.22)EÖò±É ´ªÉªÉ (|ÉÉ´ÉvÉÉxÉ EòÉä UôÉäc÷Eò®ú) /Total Expenditure (Excl. Prov.) 16892 17252 2.13 16661 (3.43)¤ªÉÉVÉ º|Éäb÷ / Interest Spread 5311 6178 16.32 5898 (4.52)

refinements in the liquidity management framework and theintroduction of marginal cost of funds based lending rate(MCLR) is expected to improve policy transmission. Your Bankhas already implemented the MCLR framework.

Aggregate deposits Y-o-Y growth for SCBs as a whole declinedto 9.91% as on 18th Mar'16 from 11.03% a month ago. Onthe other hand, credit off take marginally slowed by 11.34% inthe same period from 11.62% a month ago. In the currentfinancial year (FY17), marginal improvement in consumersentiments is expected on account of normal monsoon whichwill boost rural demand and implementation of 7th PayCommission and OROP. These measures will provide a fillipto the industry to continue in expansionary mode on the backof new orders, including exports.

The Indian economy is on the brink of a major transformationwith several policy initiatives set to be implemented shortly.Enhanced spending on infrastructure, speedy implementationof projects and continuation of reforms are expected to providefurther impetus to growth. All these factors suggest thatbanking sector is also poised for robust growth as the rapidlygrowing business would turn to banks for their credit needs.

2. PERFORMANCE OF ALLAHABAD BANK

The performance of the Bank is to be analyzed concomitantlywith the aforesaid macroeconomic and banking environmentduring FY16.

2.1 OPERATING RESULTS

The Bank's performance in key business parameters ispresented below:

Eäò ºÉÉlÉ ºÉÉlÉ xÉB JÉÉiÉä ±ÉÉxÉä ¨Éå ¨Énùnù ʨɱÉäMÉÒ* ºÉÉlÉ ½þÒ iÉ®ú±ÉiÉÉ |ɤÉÆvÉxÉføÉÆSÉä ¨Éå {ɪÉÉÇ{iÉ ¶ÉÉävÉxÉ +Éè®ú ÊxÉÊvɪÉÉå EòÒ ºÉÒ¨ÉÉÆiÉ ±ÉÉMÉiÉ {É®ú +ÉvÉÉÊ®úiÉ =vÉÉ®únù®ú ±ÉÉMÉÚ ÊEòB VÉÉxÉä ºÉä xÉÒÊiÉ ºÉÆSÉÉ®úhÉ ¨Éå ºÉÖvÉÉ®ú EòÒ ºÉƦÉÉ´ÉxÉÉ ½èþ* +É{ÉEäò¤ÉéEò xÉä B¨ÉºÉÒB±É+É®ú føÉÆSÉä EòÉä {ɽþ±Éä ½þÒ ±ÉÉMÉÚ Eò®ú ÊnùªÉÉ ½èþ*

18 ¨ÉÉSÉÇ 2016 EòÉä ªÉlÉÉκlÉÊiÉ ºÉ¨ÉOÉiÉ: BºÉºÉÒ¤ÉÒ ½äþiÉÖ ºÉEò±É VɨÉÉ®úÉʶɪÉÉå¨Éå ´É¹ÉÇ nù®ú ´É¹ÉÇ ´ÉÞÊrù BEò ¨Éɽþ {ÉÚ́ ÉÇ Eäò 11.03% ºÉä PÉ]õEò®ú 9.91% ®ú½þMɪÉÉ* nÚùºÉ®úÒ +Éä®ú =ºÉÒ +´ÉÊvÉ ½äþiÉÖ @ñhÉ =`ööÉ´É BEò ̈ Éɽþ {ÉÚ́ ÉÇ Eäò 11.62%ºÉä ¨ÉɨÉÚ±ÉÒ °ü{É ºÉä PÉ]õ Eò®ú 11.34% ®ú½þ MɪÉÉ* SÉɱÉÚ Ê´ÉkÉÒªÉ ´É¹ÉÇ (Ê´ÉkÉҪɴɹÉÇ17)¨Éå ºÉɨÉÉxªÉ ¨ÉÉxɺÉÚxÉ ºÉä ={ɦÉÉäHòÉ ¦ÉÉ´ÉxÉÉ+Éå ¨Éå ¨ÉɨÉÚ±ÉÒ ºÉÖvÉÉ®ú ½þÉäxÉäEòÒ ºÉƦÉÉ´ÉxÉÉ ½èþ ÊVɺɺÉä OÉɨÉÒhÉ ¨ÉÉÆMÉ ¨Éå iÉäVÉÒ +ÉBMÉÒ +Éè®ú 7´Éå ´ÉäiÉxÉ +ɪÉÉäMÉ+Éè®ú +Éä+É®ú+Éä{ÉÒ EòÉò EòɪÉÉÇx´ÉªÉxÉ ½þÉäMÉÉ* ªÉä ={ÉÉªÉ ÊxɪÉÉÇiÉ ºÉʽþiÉ xÉB+ÉbÇ÷®ú ʨɱÉxÉä ºÉä ʴɺiÉÉ®úEòÉ®úÒ {ÉrùÊiÉ VÉÉ®úÒ Eò®úxÉä ¨Éå ¤ÉéËEòMÉ =tÉäMÉ EòÉä|ÉäÊ®úiÉ Eò®äúMÉÒ*

¦ÉÉ®úiÉÒªÉ +lÉḈ ªÉ´ÉºlÉÉ ¤Écä÷ {ÉÊ®ú́ ÉiÉÇxÉ Eäò EòMÉÉ®ú {É®ú ½èþ ÊVɺɨÉå +xÉäEò xÉÒÊiÉMÉiÉ{ɽþ±ÉÉå EòÉä EòɪÉÉÇÎx´ÉiÉ ÊEòªÉÉ VÉÉxÉÉ ½èþ* +ÉvÉÉ®ú¦ÉÚiÉ føÉÆSÉä ¨Éå ´ÉÌvÉiÉ ´ªÉªÉ,{ÉÊ®úªÉÉäVÉxÉÉ+Éå EòÉ iÉÒμÉ EòɪÉÉÇx´ÉªÉxÉ +Éè®ú ºÉiÉiÉ ºÉÖvÉÉ®úÉå ºÉä ´ÉÞÊrù EòÉä +Éè®ú¤ÉgøÉ´ÉÉ Ê¨É±ÉxÉä EòÒ ºÉƦÉÉ´ÉxÉÉ ½èþ*

13

2.2 PERFORMANCE HIGHLIGHTS

Total business of the Bank increased to ` 358,352 croreas on March 2016 as against ` 346,519 crore in previousyear, registering a Y-o-Y growth of 3.41%.

Operating profit stood at ` 4134 crore as on Mar'16.

Total deposits of the Bank increased to ` 200,644 croreduring Mar'16 from `193,424 crore last year, therebyregistering a Y-o-Y growth of 3.73%.

Gross credit surged to ̀ 157,707 crore during Mar'16 from` 153,095 crore last year. On a Y-o-Y basis, it increasedby 3.01%.

Credit- Deposit ratio stood at 79.43% as on March 2016.

Retail credit surged to `25,894 crore, recording aY-o-Y growth of 19.20%.

Non-Fund Non-Interest Income during FY16 stood at` 1220 crore as against `1137 crore last year.

Capital Adequacy Ratio stood at 11.02% as on 31.03.2016under Basel III norms.

2.3 CAPITAL & RESERVES

During FY16, the Bank has issued and allotted equity sharesof face value of `10 each as under:

Consequently, paid up capital of the Bank has increased to` 613.80 crore and shareholding of the Govt. of India (GOI)stood at 61.38% as on 31.03.2016.

Further, the Bank has received an amount of ` 690 crorefrom GOI on 30.03.2016 towards their further capital infusionin the Bank for FY16 by way of preferential allotment of equityin favour of GOI. As preferential issue & allotment of sharesto GOI against their said capital infusion has to be made incompliance with the SEBI (Issue of Capital & DisclosuresRequirements) Regulations, 2009, the Bank is maintainingthe capital infusion fund received from the GOI as "ShareApplication Money pending allotment" as on 31.03.2016.However, with specific permission of RBI vide their letter DBR.No. BP. 12713/ 21.01.002/2015-16 dated 06.04.2016, theBank has included the entire amount of capital infusion fundreceived from GOI on 30.03.2016, into its Common EquityTier 1 (CET 1) capital as on 31.03.2016.

The reserves and surplus went up to `13,450.23 crore as on31.03.2016 from `12,071.40 crore as on 31.03.2015.

2.2 EòɪÉÇÊxɹ{ÉÉnùxÉ Ê´Éʶɹ]õiÉÉBƨÉÉSÉÇ, 2016 EòÉä ªÉlÉÉκlÉÊiÉ ¤ÉéEò EòÉ EÖò±É ´ªÉ´ÉºÉÉªÉ Ê{ÉUô±Éä ´É¹ÉÇ Eäò` 3,46,519 Eò®úÉäc Eäò ºÉÉ{ÉäIÉ ´É¹ÉÇ-nù®-´É¹ÉÇ +ÉvÉÉ®ú {É®ú 3.41% EòÒ´ÉÞÊrù nù¶ÉÉÇiÉä ½ÖþB ¤ÉgøEò® `3,58,352 Eò®úÉäc ½þÉä MɪÉÉ*

¨ÉÉSÉÇ’ 16 EòÉä ¤ÉéEò EòÉ {ÉÊ®úSÉɱÉxÉ ±ÉÉ¦É `4,134 Eò®úÉäc÷ ®ú½þÉ*

¨ÉÉSÉÇ’ 16 Eäò nùÉè®úÉxÉ ¤ÉéEò EòÒ EÖò±É VɨÉÉ ®úÉʶɪÉÉÆ ´É¹ÉÇ-nù®ú-´É¹ÉÇ +ÉvÉÉ®ú{É®ú 3.73% EòÒ ´ÉÞÊrù nù¶ÉÉÇiÉä ½ÖþB Ê{ÉUô±Éä ´É¹ÉÇ Eäò `1,93,424 Eò®úÉäcºÉä ¤ÉgøEò®ú `2,00,644 Eò®úÉäc ½þÉä MÉ

14

2.4 DIVIDEND

The Board of Directors have not recommended any dividendfor FY16.

3. BUSINESS OVERVIEW

The Bank's total business reached a level of ` 3,58,352 croreas on 31.03.2016, thereby registering a Y-o-Y growth of 3.41%and an absolute increase of ` 11,832 Crore.

3.1 DEPOSIT MOBILISATIONTotal deposits of the Bank showed a growth of 3.73% to` 200,644 crore as on 31.03.2016 as against a growth of1.35% a year ago. Although the Bank has continued to shedpart of high cost bulk deposits and CDs during FY16, still itcould register a higher Y-o-Y growth as against the previousyear. SB deposits grew by 11.72% to ` 62,514 crore as on31.03.2016, constituting 31.49% of aggregate deposits. TheBank lay emphasis on CASA deposits mobilization,especially on Savings Bank A/c opened per branch per dayas result of which CASA ratio improved to 36.28% as on31.03.2016.

3.2 CREDIT DEPLOYMENT

Total advances of the Bank went up by 3.01% to ` 157,707crore as on 31.03.2016. Credit-Deposit ratio stood at 79.43%as against 79.60% last financial year. Your Bank has adoptedthe Marginal Cost of Funds Based Lending Rate, which will bethe internal benchmark to calculate interest on advances asper RBI guidelines w.e,f. 01.04.2016. Yield on advances forthe Bank stood at 10.01% as on 31.03.2016 as against 10.91%during last fiscal.

The Bank has major thrust on faster delivery and adoption ofbest practices in credit administration. During the year, effortswere made to improve the speed of decision making withoutcompromising on quality. As a part of its ongoing businessstrategy to improve the quality of assets, the Bank analyzesthe prevailing position, problems foreseen in near future andidentifies weaknesses/ potential defaults at any stage. Thisenables the Bank to take corrective steps to prevent impairmentin credit quality, which includes restructuring in deservingcases.

3.2.1 RETAIL CREDIT

The portfolio under Retail Credit as on 31.03.2016 stood at` 25,894 crore as against ̀ 21,723 crore a year ago, registeringY-o-Y growth of 19.20%. The Bank gave thrust on retail lendingin FY16. As a result, the share of retail credit portfolio againstGross Credit increased to 16.42% in FY16 from 14.19% duringlast fiscal. Housing Loan, a key constituent under Retail Creditgrew at a pace of 27.39%.

Going forward, the Bank is looking at a growth of 20% in theretail credit portfolio. Also, major thrust on loans having lowcapital requirement like housing loan, gold loan, etc willcontinue to be given. The Bank has also opened additional 9Centralized Retail Banking Boutiques (CRBBs) at differentcentres during FY16. Your Bank has now a total of 55 CRBBs

2.4 ±ÉɦÉÉƶɤÉéEò Eäò ÊxÉnäù¶ÉEò ¨ÉÆb÷±É xÉä Ê´ÉkÉÒªÉ ´É¹ÉÇ 16 ½äþiÉÖ ÊEòºÉÒú ±ÉɦÉÉÆ¶É EòÒ ºÉƺiÉÖÊiÉxɽþÓ EòÒ ½èþ*

3. ´ªÉ´ÉºÉÉªÉ {ÉÊ®úoù¶ªÉ

ªÉlÉÉκlÉÊiÉ 31.03.2016 EòÉä ¤ÉéEò EòÉ EÖò±É ´ªÉ´ÉºÉÉªÉ ` 3,58352 Eò®úÉäc÷Eäò ºiÉ®ú iÉEò {ɽÖÆþÆþSÉ MɪÉÉ, ÊVɺɺÉä ´É¹ÉÇ-nù®ú-´É¹ÉÇ +ÉvÉÉ®ú {É®ú 3.41% EòÒ ´ÉÞÊrù+Éè®ú ÊxÉ®ú{ÉäIÉ °ü{É ºÉä `11832 Eò®úÉäc÷ EòÒ ´ÉÞÊrù nùVÉÇ EòÒ MÉ

15

(` Eò®úÉäc÷ ¨Éå)/( Amount ` in Crore)

spread over different parts of the country specially catering tospecified retail loans for quick & hassle free disposal.

3.2.2 PRORITY SECTOR CREDIT

Priority Sector Credit increased to `62,695 crore as on31.03.2016 from `53910 crore as on 31.03.2015,registering Y-o-Y growth of 16.30%. The Bank hascomfortably achieved the norm of 40% of ANBC byreaching 42.69% of ANBC as on Mar'16.

Agriculture Credit increased from `24,680 crore as onMar' 15 to `26,827 crore as on Mar'16, registering anabsolute Y-o-Y growth of 8.70%. Bank has achieved18.27% of ANBC as on Mar'16.

The Bank's performance under Priority Sector andWeaker Sections as on 31.03.2016 is presented below:

½éþ VÉÉä ʴɶÉä¹É °ü{É ºÉä Ê´ÉÊxÉÌnù¹]õ Ê®ú]äõ±É @ñhÉÉå EòÉä EòÉ i´ÉÊ®úiÉ +Éè®ú ZÉÆZÉ]õ¨ÉÖHò iÉ®úÒEäò ºÉä ÊxÉ{É]õÉxÉ Eò®úiÉä ½éþ*

3.2.2 |ÉÉlÉʨÉEòiÉÉ IÉäjÉ @ñhÉ|ÉÉlÉʨÉEòiÉÉ IÉäjÉ @ñhÉ 31¨ÉÉSÉÇÇ, 2015 EòÉä ªÉlÉÉκlÉÊiÉ `53910Eò®úÉäc÷ ºÉä ¤Égø Eò®ú 31¨ÉÉSÉÇÇ, 2016 EòÉä ªÉlÉÉκlÉÊiÉ `62695 Eò®úÉäc÷½þÉä MɪÉÉ +Éè®ú

16

3.2.3 RUPAY KISAN CARDS ( RKC )

A sum of `5641 crore was disbursed by the Bank duringFY16 in 5.69 lacs number of KCC accounts out of whichdisbursal of `2359 crore was made in 1.74 lacs freshKCC accounts.

Bank is now processing all KCC loan applications underAkshay Krishi-Kisan Credit Card Scheme digitally.

RuPay Kisan Card providing ATM facility in KCC accountshas been launched on 09.02.2013. As per instructionsof Government of India, the Bank has started issuingRuPay Kisan Cards to all eligible KCC account holders.

Bank has issued 575271 Cards during this Financial Year.

3.2.4 MSME SECTOR FINANCING

Credit to Micro,Small and Medium Enterprises (MSME) grewfrom ` 22359 crore as on March 2015 to ` 27798 Crore as onMarch 2016, registering an absolute Y-o-Y growth of ` 5439crore (24.33%).

3.2.5 COLLATERAL FREE LOANS VIS-A-VIS COVERAGEUNDER CGTMSE

The Bank has given much thrust on (credit delivery) to collateralfree loans covered under CGTMSE. As on 31.03.2016collateral free loans to Micro and Small Enterprises underCGTMSE was `1653 Crore.

3.2.6 BANK'S EXPOSURE TO MICRO FINANCEINSTITUTIONS (MFIs)

As on 31.03,2016, total outstanding credit to MFI is `98.83crores in 13 MFI accounts.

3.2.7 LEAD BANK SCHEME:

Bank is having Lead Bank responsibility in 17 districts,13 in Uttar Pradesh, 2 in Jharkhand and one each inMadhya Pradesh and West Bengal.The Bank disbursed `4053 crore under Priority SectorCredit against a target of ̀ 4161 crore under District CreditPlan 2015-16 achieving 97.40% of the target.

As Lead Bank, your Bank took initiatives in implementingall State and Central Government programmes includingPMJDY, APY & other social insurance schemes.

3.2.8 Pradhan Mantri MUDRA YojanaUnder the scheme, Bank has disbursed total `1768 crore in160041 accounts as on 31.03.2016.

3.2.9 School Bank Champ Project

Under the project, total 2557 schools have been mapped byour Bank across pan India. The Bank has organized 2489literacy camps under the project and opened 85400 childrenaccounts as on 31.03.2016.

3.3 FEE BASED INCOME

The Bank has earned fee based income of `1220 crore inMarch 2016 as compared to `1137 crore last year, registeringa growth of 7.32%. The Bank has achieved 86% of its total

3.2.3 °ü{Éä ÊEòºÉÉxÉ EòÉbÇ÷ (+É®úEäòºÉÒ)

Ê´ÉkÉÒªÉ ´É¹ÉÇ 16 Eäò nùÉè®úÉxÉ ¤ÉéEò xÉä 5.69 ±ÉÉJÉ ÊEòºÉÉxÉ GäòÊb÷]õ EòÉbÇ÷Eäò ¨ÉÉvªÉ¨É ºÉä `5641 Eò®úÉäc÷ EòÒ ®úÉ榃 ºÉÆÊ´ÉiÉÊ®úiÉ EòÒ ÊVɺɨÉå ºÉä1.71 ±ÉÉJÉ xÉB EäòºÉÒºÉÒ JÉÉiÉÉå ̈ Éå ̀ 2359 Eò®úÉäc÷ EòÒ ®úÉ榃 ºÉÆÊ´ÉiÉÊ®úiÉEòÒ MÉ

17

budget of earnings from TPP in March 2016. The total incomeacross services like TPP, DP & online trading and CMS hasamounted to ` 28.04 crore in Mar'16 as compared to ` 24.58crore in Mar'15.

3.4 OFFICES & BRANCHES

The Bank is having 3209 domestic branches and one overseasbranch at Hong Kong. Out of 3209 domestic branches, 1307are at Rural, 720 at Semi-urban, 656 at Urban and 526 atMetropolitan Centres. A total of 108 new branches have beenopened during FY16, out of which 50 are at Rural, 31 at SemiUrban, 20 at Urban and 7 at Metro centers. The rural branchesincludes opening of 36 branches in unbanked rural centres.Further, 6 Metro branches have been merged to consolidatebusiness of close by located centres.

3.5 INTERNATIONAL BANKINGThe Bank carries out its international business in India throughits 53 authorised/ designated branches, which includes fiveinternational branches & through its overseas branch at HongKong. The Bank also has a centralised fully equipped forexdealing room at FCTM Branch Mumbai which handles forextransactions in 9 currencies and maintains 14 Nostro accountsand 1 Vostro account. Export Credit of the Bank as on31.03.2016 stood at ` 2539.80 crores. The Bank is taking allsteps to increase the credit flow to exporters. Exporters' meetsare arranged at various centres to explain various facilitiesavailable to them. The Bank maintains correspondentrelationship with prime banks abroad. The Bank is also cateringto the needs of Non-Resident Indians through its branches.

3.6 OVERSEAS PRESENCE

Bank is having one overseas branch with a dealing room atHong Kong. The business of Hong Kong has increased from`10,420 crore as on 31.03.2015 to `12,519 crore as on31.03.2016. The Hong Kong branch has earned operating profitof ` 119.31 crore and net profit of ` 44.63 crore in FY16.

4. FINANCIAL INCLUSION

Pradhan Mantri Jan Dhan Yojona (PMJDY) was launched on28.08.2014 with basic objective of achieving inclusive growthin Mission Mode through the following Six Pillars:

Pillar-1: Universal access to Banking facilities

The Bank was allocated 17732 villages across thecountry for coverage by deploying Bank Mitra in thesevillages. These villages have been regrouped into 4580Sub Service Areas (SSAs). Each SSA comprises of 2 to6 villages based on population of these villages i.e.maximum 5000-6500 population within a radius of 5 Kmarea.

These 4580 SSAs has been fully covered by our Bankby deploying 4355 Bank Mitras and covering remaining225 SSAs through Branches.

Pillar-2: Financial Literacy Programme

The Bank provides financial literacy through FinancialLiteracy Centers (FLC) located in all our Lead Districtsand camps are organized at regular intervals throughFLC counsellors.

ÊEòªÉÉ ½èþ* ]õÒ{ÉÒ{ÉÒ/b÷Ò{ÉÒ +Éè®ú +ÉxɱÉÉ

18

Financial Literacy is also provided by Bank Mitra locatedin villages through their Kiosks, various meetings andcamps are also organized to educate rural population.

Pillar-3: Providing Basic Banking Accounts

A total of 21.84 lac account holders who were not havingbank accounts (out of 56.24 lac household falling underthe villages and wards allocated to our Bank.) werecovered by Bank as on 31.12.2014.

Status of opening of PMJDY accounts as on 31.03.2016is as under:

Gò¨É ºÉÆ. Sl. Ê´É´É®úhÉ/ Particulars 31.03.2015 31.03.2016 +ÆiÉ®ú %% Variation

1. {ÉÒB¨ÉVÉäb÷Ò´ÉÉ

19

(` Eò®úÉäc÷ ¨Éå/` in Crore)31.03.2016

{ÉÖxÉMÉÇ̀ öxÉ EòÉ |ÉEòÉ®ú ¨ÉɨɱÉÉå EòÒ ºÉÆJªÉÉ ¤ÉEòɪÉÉ ®úÉ릃 ºÉEò±É @ñhÉ EòÉ |ÉÊiɶÉiÉ iªÉÉMÉType of Restucturing No. of cases Amount Outstanding %to Gross Credit Sacrifice

ºÉÒb÷Ò+É®ú ¨ÉɨɱÉä/CDR cases 29 3678.94 2.33 230.68MÉè®ú ºÉÒb÷Ò+É®/Non-CDR Cases 5287 4653.78 2.95 79.62(i) MÉè®ú ºÉÒb÷Ò+É® BºÉB¨É

20

Government, Integration of internet banking with Bharat KoshPortal, TNIGRS online and offline for TN Government, PropertyTax collection for Municipal Corporation of Gurgaon, Collectionon behalf of EPFO etc.8. PUBLICITY ENDEAVOURSThe Bank has gone for nation-wide campaign in newspapers/magazines, hoardings wherein retail products and Bank's richlegacy were popularized. Small campaigns were alsoundertaken in radio and television.

9. CORPORATE SOCIAL RESPONSIBILITY

During FY16, the Bank has spent a sum of ` 1099 lacs underCSR activity. The details are as under:

10. INFORMATION TECHNOLOGY: CBS & ALTERNATEDELIVERY CHANNELS

Under Financial Inclusion Project, the Bank has providedBanking Facilities through Online Inter-operable KioskBanking Solution at 5041 BC locations using Micro ATMs.

For opening of account, e-KYC facility has beenimplemented for customer verification without any paperdocuments. Aadhaar Enabled Payment System (AEPS)for on-us & off-us transaction and RuPay ATM cardacceptance at all BC locations have been madeoperational.

Bank's Internet Banking Application has been enhancedwith new facilities and look & feel. Facility for on-linegeneration of Transaction Password & ATM PIN, CardHot listing, scheduling of Funds Transfer, IMPS, e-filingof Income tax returns, SBI e-pay integration, mobilebanking registration etc. have been introduced.

Bank has deployed 42 new ATMs in FY16 and total ATMcount is 1212 as on 31.03.2016.

The Bank has launched new variants of RuPay cards vizRuPay Platinum, MUDRA and PUNGRAIN during FY16.All RuPay cards are enabled for POS & e-Commercetransactions. Bank has introduced Insta PIN facility toprovide ATM PIN instantly to customers in case ofurgency. EMV Chip based card has been introduced forRuPay and VISA cards.

EòÉä¶É {ÉÉä]Çõ±É Eäò ºÉÉlÉ

21

Mobile Banking system has been enhanced with newfeatures like IMPS for instant funds transfer and instantrecharge of DTH & Mobile.

New facilities for enhanced customers' experience havebeen provided at branches viz. on-line PAN verification,instant fund transfer through IMPS, introduction ofSovereign Gold Bond Scheme, SMS alert before debitingthe account for cheques presented in CTS.

10.1 e-DELIVERY

Growth in Mobile Banking Registration increased from1.48 lac as on 31.03.2015 to 10.87 lac as on 31.03.2016during FY16.

Increase in IMPS transactions approx. by 179% fromMar'15 to Mar'16, thereby increasing NFNI income ofBank from Rs. 7.49 lac in Mar'15 to Rs. 54.03 lac in Mar'16(increase of 620%).

Internet Banking increased to 5.57 lac from 3.55 lac(increase 46.88%) in FY16.

Customer base for Debit Cards grew to 98.50 lac from67.06 lac (increase of 46.88%) during FY16

Increase in percentage of electronic mode transactionover manual transactions. i.e; from 15.90% to 30.28%.The Bank has made live 185 onsite e-Lobbies, 2 offsitee-Lobbies, 97 mini e-Lobbies, 54 Cash Deposit Kiosksand 43 Pass Book Printing Kiosks covering 381 branches.To create awareness amongst bank staff regardingvarious alternate delivery channels with specific emphasison Mobile Banking classes in Staff Training College(STC)/workshops were conducted pan India.

11. BUSINESS PROCESS RE-ENGINEERING (BPR)

Business Process Re-engineering (BPR) Cell is functioningwith the purpose of bringing desired changes in the existingsystems and processes, products and business of the bankon a continuous basis for maximizing performance, mainlyproductivity and efficiency.In order to provide better customer service, the Bank has takenup actions/ introduced/ amended its business processes duringthe reporting year 2015-16.

12. AUTOMATED DATA FLOW (ADF)

In line with RBI requirements, ADF cell has developed in-houseproject and established an automated system of creation andupdation of Centralized Data Repository (CDR) by seamlessdata flow from various sources. Accordingly, reports are nowgenerated without any manual interventions.

13. RISK MANAGEMENT

The Bank has put in place comprehensive and well-definedpolicies & procedures, in accordance with the guidelinesprescribed by the regulator, for identification, monitoring andmitigating the risks associated with business of the Bank.

• ¨ÉÉä¤ÉÉ

22

The risks are managed through a well defined risk managementarchitecture functioning at Head Office, which also takesmeasures to enhance risk management capabilities acrossthe Bank. The overall risk undertaken by the Bank is monitoredat the top most level of the Board of Directors. Various sub-committees viz., Risk Management Committee (RMC) of theBoard, Asset-Liability Management Committee (ALCO), CreditRisk Management Committee (CRMC), Operational RiskManagement Committee (ORMC) and Market RiskManagement Committee (MRMC) have been formed to reviewvarious aspects of risk arising from the businesses undertakenby the Bank. The Bank has also put in place the Internal CapitalAdequacy Assessment Process (ICAAP) for assessingsignificant risks associated with various businesses. The Bankcontinues to focus on refining and improving its riskmeasurement systems not only to ensure compliance withregulatory requirements, but also to ensure better risk-adjustedreturn and optimal capital utilization.

14. HUMAN RESOURCE DEVELOPMENT

With a stable human resource policy in place, your Bank isconstantly endeavouring to ensure availability of personnel,well equipped with requisite skill sets and exposure, to copeup with present day challenges arising from the continuedhigher trend of retirements on superannuation in the Bank.Your Bank has adopted balanced strategy to create acomposite and responsible human resource that canadequately meet the present day challenges in the -Bank.

The Bank has continued with its focus on overall developmentof its human assets through manpower planning, knowledgeenrichment, capacity building, promotion & career progression,staff welfare, etc., to maintain a high level of productivity.

14.1 RECRUITMENT & MANPOWER MIX

Your Bank's Human Resource Department has continued withits need based approach in infusing new recruits to the systemto maintain the optimal strength of the existing manpower.During FY16, total 1349 officers/employees have beenrecruited by the Bank, which includes 166 officers (includingspecialist officers) and 620 SWO-A in clerical cadre. This hashelped to maintain the average age of workforce, which stoodat 40.20 years as on 31.03.2016 and is one of the lowest inthe public sector banks. Further, the Bank is in the process

14.2 ¤ÉéEò EòÒ VÉxɶÉÊHò EòÒ ÊºlÉÊiÉ ÊxɨxÉÉxÉÖºÉÉ®ú ½è / Manpower Mix Of The Bank Is As Under:¸ÉähÉÒ / Category ªÉlÉÉκlÉÊiÉ / As on 31.03.2015 ªÉlÉÉκlÉÊiÉ / As on 31.03.2016

+ÊvÉEòÉ®úÒ / Officer 12771 12641ʱÉÊ{ÉEò / Clerk 7289 6909+vÉÒxɺlÉ º]õÉ¡ò /Sub-staff (including part-time sweepers) 4171 4587

EÖò±É VÉxɶÉÊHò / Total Manpower 24231 24137

ÊVÉxɨÉå ºÉä / Out of which+xÉÖºÉÚÊSÉiÉ VÉÉÊiÉ / Scheduled Castes 6270 6502+xÉÖºÉÚÊSÉiÉ VÉxÉVÉÉÊiÉ / Scheduled Tribes 1748 1825+xªÉ Ê{ÉUôc÷É ´ÉMÉÇ / Other Backward Class 3907 4363¨Éʽþ±ÉÉ / Women 4253 4432+xªÉ (B¨ÉºÉÒ, {ÉÒBSÉ B´ÉÆ BCºÉBºÉB¨É) / Others (MC, PH & XSM) 2204 2287

¤ÉéEò uùÉ®úÉ =`öööÉB MÉB ºÉ¨ÉOÉ VÉÉäÊJÉ¨É EòÒ ¨ÉÉÊxÉ]õË®úMÉ ÊxÉnäù¶ÉEò ¨ÉÆb÷±É Eäò¶ÉÒ¹ÉÇiÉ¨É ºiÉ®ú {É®ú EòÒ VÉÉiÉÒ ½èþ* ¤ÉéEò uùÉ®úÉ ÊEòB MÉB ´ªÉ´ÉºÉÉªÉ ºÉä =i{ÉzÉVÉÉäÊJɨÉÉå Eäò Ê´ÉʦÉzÉ {ɽþ±ÉÖ+Éå EòÒ ºÉ¨ÉÒIÉÉ ½äþiÉÖ Ê´ÉʦÉzÉ ={É ºÉʨÉÊiɪÉÉÆ MÉÊö`öiÉEòÒ MÉ

23

of recruiting 685 officers (including specialist officers) and 839SWO-A during FY17. This is in addition to two compassionateappointments made in the clerical cadre on account of deathof employees while in service and considered under theScheme for Compassionate Appointment introduced duringthe last year in the light of directive received from theGovernment of India.

SC/ST and OBC Cells are set up in the Bank at Head Officeand Zonal Offices under the Chief Liaison Officer and theLiaison Officers respectively. Besides dealing with thegrievances of SC/ST and OBC employees of the Bank, theCells look after the implementation of Government guidelinesissued from time to time in this regard.

14.3 LEARNING & DEVELOPMENT

Keeping in tune with the corporate priorities, Recovery andRetail Banking have been the prime focus areas in capacitybuilding during FY16. With a view to reaching out to variouscross sections of employees, the training programmes wereconducted for carefully selected target groups viz. newrecruits, first time Branch Managers, new promotees, officerswho have not undergone any training programme in thelast three years, POs (Refresher course), Promotee officers(Refresher course) and Clerical staff who have notundergone training in the last one year. Exclusive creditprogrammes were two pronged: one targeted for BranchHeads and the other for officers in second line or iSMARTofficers.

During the aforesaid financial year, 4984 number of officersand 1465 number of Clerical staff were trained through our in-house training establishments.

Short duration programmes of one/two days were conductedby faculties of our Training Establishments at various locationsin coordination with the ZOs. These programmes were offocused nature and topics were selected according to theneeds of the target groups.

During FY16, 1023 number of officers were trained throughthe locational programmes

15. NEW INITIATIVES

Golbibo: Tie-up with the Travel aggregator Golbibo forproviding the cash discounts at the time of booking trainand flight tickets and Hotel bookings by the customers ofthe 'Bank in their portal through the Alternate deliveryChannels of the Bank viz. Debit Cards' and InternetBanking.

EzeeWill: Tie-up with the M/s. NSDL e-GovernanceInfrastructure Ltd. for providing the Will preparationservices, wherein the customers of the Bank can preparetheir' WILL' online.

The Bank has signed a Memorandum of Agreement(MoA) with NSFDC for claiming refinance, for on lendingto Schedule Caste borrowers at concessional rate ofinterest having family income less than double poverty

24

line (presently ` 98000 p.a. for rural and ` 120000 p.a.for urban areas.)

Launch of RuPay Platinum Debit Card (International),with higher limits of withdrawals at ATMs (` 1.00 lac perday), PoS and e-Commerce site (` 2.00 lac per day).Accidental Insurance coverage by NPCI for this card is` 2.00 lac.

16. INTERNAL CONTROL SYSTEM

16.1 KNOW YOUR CUSTOMER (KYC) & ANTI-MONEYLAUNDERING (AML)

The Bank has implemented revised comprehensive policyguidelines on 'Know Your Customer (KYC) norms/Anti MoneyLaundering (AML) standards /Combating Financing ofTerrorism (CFT) / Obligations of Bank under PMLA 2002' forthe period 2015-16 in pursuance with the directives of ReserveBank of India.Under AML measures, the Bank is reporting to FinancialIntelligence Unit India (FIU-IND) in terms of the provisions ofPrevention of Money-Laundering Act (PMLA) 2002 andPrevention of Money-Laundering (Maintenance of Records)Rules, 2005 through Cash Transaction Report (CTR), Non-Profit Organization Transaction Report (NTR), Cross-borderWire Transfer Report (CWTR), Suspicious Transaction Report(STR) and Counterfeit Currency Report (CCR). The reportingis made online by the designated Principal Officer of the Bankas per the guidelines of FIU-IND and all the reports areuploaded on their portal within prescribed time schedule.

16.2 INSPECTION & AUDIT

With the implementation of Risk Based Internal Audit & RiskBased Concurrent Audit, the Annual Audit Plan is preparedas per the Risk profile of the branches. The audit resourcesare prioritized towards high risk areas. This provides areasonable assurance to the Board and Top Managementabout the adequacy and effectiveness of the RiskManagement and control framework in the Bank's operations.2581 branches across the country were subjected to internalinspection during FY16. We have implemented the RiskBased Concurrent Audit (RBCA), wherein 1421 of ourBranches are under concurrent audit covering 92% of ourtotal business, as against 70% coverage stipulated by RBI.By convergence of concurrent audit & internal inspection, itis ensured that all the inherent risks are managed within theacceptable levels.

All our 49 Zones, 7 FGM offices & other offices are subjectedto internal audit once in a year.

Offsite monitoring cell at Head Office & different Zones havebeen in operation to keep a track of business operations witha bird's eye view. The scope and coverage of the Cell havesince been structured and broad based. The Cell is nowreviewing the MIS on critical items like high value/abnormaltransactions and sensitizing the Controlling Offices / Branches/ Departments for corrective action, if any deviations areobserved.

+Éè®ú ¶É½þ®úÒ IÉäjÉÉå ½äþiÉÖ `120000 ´ÉÉ̹ÉEò) Eäò +xÉÖºÉÚÊSÉiÉ VÉÉÊiÉ=vÉÉ®úEòiÉÉÇ+Éå EòÉä Ê®úªÉɪÉiÉÒ nù®ú {É®ú +ÉMÉä @ñhÉ |ÉnùÉxÉ ÊEòªÉÉ VÉÉiÉÉ ½èþ*

• B]õÒB¨É ºÉä +ɽþ®úhÉ EòÒ =SSÉiÉ®ú ºÉÒ¨ÉÉ Eäò ºÉÉlÉ ¯û{Éä {±ÉäÊ]õxÉ¨É B]õÒB¨ÉEòÉbÇ EòÉ +É®Æú¦É (`1.00 ±ÉÉJÉ |ÉÊiÉ ÊnùxÉ) {ÉÒ+ÉäBºÉ +Éè®ú

25

The Bank has also identified certain areas as 'Zero ToleranceAreas' & 'Fraud Sensitive Area'. These will foster and ensurefurther robustness of the system and control in the branchesas well as to keep the lapses and irregularities at minimumlevel. Inspection Policy, Inspection Module, RBIA Module,Management Audit format & ZIC formats have been modified/reviewed by the Operational Risk Management Committee.Certain new initiatives have been introduced in the systemprominent among which is the "DeVA" (Document electronicVerification and Approval).

All our Inspecting officials are subjected to a refresher courseonce in a year, Similarly, all our Concurrent Auditors are alsogiven interactive locational training by top executives fromZones/Head office.

All efforts are being made to strengthen our Inspection & Auditfunction by deploying adequate & quality man power in thesystem.

16.3 VIGILANCE

Knowledge Hub: Information, rules & regulations ondifferent areas of Banking are uploaded at Bank's IntranetPortal on regular basis. We urge upon maintenance ofalertness, vigil and ethics so that the Organizationremains safe.

Workshop at Zones: The importance of direct interactionwith the staff in branches has been a set priority andthus workshops at various zones have been conductedto explain the common irregularities to be taken care ofby the field functionaries.

Workshop at H.O: A workshop on 'Emerging CrimeTrends in Advance & in CTS Clearing System' wasconducted at Head Office wherein a senior official fromFraud Section, Detective Deptt, Kolkata Police, took thesession.

17. THE RIGHT TO INFORMATION ACT 2005

In pursuance of the enactment of Right to Information Act,2005, the Bank has designated 50 Central Public InformationOfficers at all its Zonal Offices including Head Office and anAppellate Authority at Head Office. Further, as per the directionsof Central Information Commission (CIC), a TransparencyOfficer for the Bank, has also been designated. The Bank isproviding information to the citizens of India through suo-motodisclosures on website as well as through disposal of requestsfor information received under the Act. During FY16, the Bankreceived 3262 requests for information and 706 First Appeals,under the Act, out of which 3171 RTI applications and 627First appeals were disposed of & remaining applications andappeals were under process as on 31.3.2016. However, thesewere well within the stipulated period of disposal as allowedunder the provisions of the Act.

¤ÉéEò xÉä EòÊiÉ{ÉªÉ IÉäjÉÉå EòÉä ‘VÉÒ®úÉä ]õɱɮåúºÉ IÉäjÉ’ ‘£òÉb÷ ºÉåʺÉÊ]õ´É IÉäjÉ’ Eäò°ü{É ¨Éå ÊxÉvÉÉÇÊ®úiÉ ÊEòªÉÉ ½èþ*

26

18. OFFICIAL LANGUAGE

Compliance of various provisions under the OfficialLanguage Policy of Govt. of India was ensured in order toachieve the targets stipulated in the Annual Programme2015-16. Accordingly, statutory requirements with regard toissuance of documents in bilingual form under Section 3(3) ofOfficial Language Act, reply of Hindi letters in Hindi, bilingualpublication of Manuals & Codes, bilingualisation of stationeryitems was ensured. During the year, a large number of officersand employees, not having working knowledge of Hindi, werenominated for various Hindi Teaching Courses conducted bythe Govt. of India. During the year, 109 Hindi Workshops and205 Desk Training Programmes were organized throughoutthe country to impart practical training for use of Hindi in dayto day internal work.

Various Town Official Language Implementation Committee( TOLICS )across the country awarded our various officesfor remarkable implementation of Official Language Hindi.Our Zonal Office(ZO), Ranchi was awarded "First Prize" byTOLIC (Bank), Ranchi for outstanding implementation ofOfficial Language. Nasik Branch under ZO, Pune wasalso awarded "First Prize" by TOLIC(Bank), Pune. ZOJabalpur was awarded "Second Prize" by the TOLIC,Jabalpur. ZO Agra was awarded with "Third Prize" byTOLIC(Bank), Agra for outstanding implementation ofofficial language Hindi.

Your Bank is convener of TOLIC(Bank), Ranchi. During thisyear our ZO Gonda has been assigned the responsibility ofTOLIC (Bank), Gonda by Deptt. of Official Language, MHA,Govt. of India.

The 3rd Sub-committee of the Committee of Parliament onOfficial Language inspected ZO Allahabad on 22.09.2015 andZO Agra on 13.02.2016. The Hon'ble Committee lauded thework done by respective zonal offices.

19. SUBSIDIARY & JOINT VENTURE

AllBank Finance Ltd., a wholly owned subsidiary of AllahabadBank, engaged in Corporate Advisory Services, ProjectAppraisal, Issue Management, Loan Syndication, DebentureTrusteeship and Underwriting, posted a net profit of ` 5.75crore in FY16.

The Bank holds 27.04% equity stake in Asset ManagementCompany "ASREC (India) Ltd.", along with other Banks/Institutions.

The Bank holds 30% equity stake in joint venture company"Universal Sompo General Insurance Company Limited" forgeneral insurance along with Indian Overseas Bank, KarnatakaBank Ltd., Dabur Investment Ltd. and Japanese insurancemajor "Sompo".

18. ®úÉVɦÉɹÉÉ

´ÉÉ̹ÉEò EòɪÉÇGò¨É 2015-16 ¨Éå ÊxÉvÉÉÇÊ®úiÉ ±ÉIªÉÉå EòÒ |ÉÉÎ{iÉ Eäò =qäù¶ªÉ ºÉä¦ÉÉ®úiÉ ºÉ®úEòÉ®ú EòÒ ®úÉVɦÉɹÉÉ xÉÒÊiÉ Eäò +ÆiÉMÉÇiÉ Ê´ÉʦÉzÉ |ÉÉ´ÉvÉÉxÉÉå EòÉ +xÉÖ{ÉɱÉxɺÉÖÊxÉζSÉiÉ ÊEòªÉÉ MɪÉÉ ½èþ* iÉnùxÉÖºÉÉ®ú ®úÉVɦÉɹÉÉ +ÊvÉÊxÉªÉ¨É EòÒ vÉÉ®úÉ 3(3)Eäò +ÆiÉMÉÇiÉ nùºiÉÉ´ÉäVÉÉå EòÉä Êuù¦ÉɹÉÒ °ü{É ¨Éå VÉÉ®úÒ Eò®úxÉä ʽþxnùÒ ¨Éå |ÉÉ{iÉ {ÉjÉÉåEòÉ =kÉ®ú ʽþxnùÒ ¨Éå näùxÉä, ¨ÉèxªÉÖ+±É +Éè®ú EòÉäb÷ Eäò Êuù¦ÉÉʹÉEò |ÉEòɶÉxÉ, ±ÉäJÉxɺÉɨÉOÉÒ ¨ÉnùÉå Eäò Êuù¦ÉɹÉÒEò®úhÉ ºÉƤÉÆvÉÒ ºÉÉÆÊ´ÉÊvÉEò +{ÉäIÉÉ+Éå EòÉä ºÉÖÊxÉζSÉiÉÊEòªÉÉ MɪÉÉ* ʽþxnùÒ EòÉ EòɪÉǺÉÉvÉEò YÉÉxÉ xÉ ®úJÉxÉä ´ÉɱÉä +ÊvÉEòÉÊ®úªÉÉå +Éè®úEò¨ÉÇSÉÉÊ®úªÉÉå EòÉä ¤Éc÷Ò ºÉÆJªÉÉ ¨Éå ´É¹ÉÇ Eäò nùÉè®úÉxÉ ¦ÉÉ®úiÉ ºÉ®úEòÉ®ú uùÉ®úÉ ºÉÆSÉÉʱÉiÉÊ´ÉʦÉzÉ Ê½þxnùÒ Ê¶ÉIÉhÉ {ÉÉ`öö¬Gò¨ÉÉå ½äþiÉÖ xÉÉʨÉiÉ ÊEòªÉÉ MɪÉÉ ½èþ* ´É¹ÉÇ Eäò nùÉè®úÉxÉnäù¶É ¦É®ú ¨Éå 109 ʽþxnùÒ EòɪÉǶÉɱÉÉBÆ +Éè®ú nèùxÉÆÊnùxÉ Eäò +ÉÆiÉÊ®úEò EòɪÉÉæ ¨ÉåʽþxnùÒ Eäò |ɪÉÉäMÉ ½äþiÉÖ ´ªÉɴɽþÉÊ®úEò |ÉʶÉIÉhÉ |ÉnùÉxÉ Eò®úxÉä Eäò ʱÉB 205ʽþxnùÒ bä÷ºEò |ÉʶÉIÉhÉ EòɪÉÇGò¨É +ɪÉÉäÊVÉiÉ ÊEòB MÉB*

näù¶É ¦É®ú ¨Éå EòɪÉÇ®úiÉ Ê´ÉʦÉzÉ xÉMÉ®ú ®úÉVɦÉɹÉÉ EòɪÉÉÇx´ÉªÉxÉ ºÉʨÉÊiÉ xÉä ®úÉVɦÉɹÉÉʽþxnùÒ Eäò EòɪÉÉÇx´ÉªÉxÉ Eäò IÉäjÉ ¨Éå =±±ÉäJÉxÉÒªÉ EòɪÉÇÊxɹ{ÉÉnùxÉ Eò®úxÉä ½äþiÉÖ½þ¨ÉÉ®äú Ê´ÉʦÉzÉ EòɪÉÉDZɪÉÉå EòÉä {ÉÖ®úºEÞòiÉ ÊEòªÉÉ ½èþ* ½þ¨ÉÉ®äú ¨ÉÆb÷±ÉÒªÉ EòɪÉÉDZɪɮúÉÆSÉÒ EòÉä ®úÉVɦÉɹÉÉ ¨Éå =iEÞò¹]õ EòɪÉÇÊxɹ{ÉÉnùxÉ ½äþiÉÖ xÉ®úÉEòɺÉ, ¤ÉéEò ®úÉÆSÉÒ uùÉ®úÉ“|ÉlÉ¨É {ÉÖ®úºEòÉ®”ú |ÉnùÉxÉ ÊEòªÉÉ MɪÉÉ ½èþ* ½þ¨ÉÉ®äú ¨ÉÆb÷±ÉÒªÉ EòɪÉÉÇ±ÉªÉ {ÉÖhÉå Eäò+ÆiÉMÉÇiÉ xÉÉʺÉEò ¶ÉÉJÉÉ EòÉä ®úÉVɦÉɹÉÉ ̈ Éå =iEÞò¹]õ EòɪÉÇÊxɹ{ÉÉnùxÉ ½äþiÉÖ xÉ®úÉEòɺÉ,¤ÉéEò {ÉÖhÉä uùÉ®úÉ “|ÉlÉ¨É {ÉÖ®úºEòÉ®”ú |ÉnùÉxÉ ÊEòªÉÉ MɪÉÉ ½èþ* ¨ÉÆb÷±ÉÒªÉ EòɪÉÉDZɪÉVɤɱÉ{ÉÖ®ú EòÉä xÉ®úÉEòÉºÉ VɤɱÉ{ÉÖ®ú uùÉ®úÉ “ÊuùiÉÒªÉ {ÉÖ®úºEòÉ®”ú |ÉnùÉxÉ ÊEòªÉÉMɪÉÉ*½þ̈ ÉÉ®äú ̈ ÉÆb÷±ÉÒªÉ EòɪÉÉÇ±ÉªÉ +ÉMÉ®úÉ EòÉä ®úÉVɦÉɹÉÉ ̈ Éå =iEÞò¹]õ EòɪÉÇÊxɹ{ÉÉnùxɽäþiÉÖ xÉ®úÉEòɺÉ, ¤ÉéEò +ÉMÉ®úÉ uùÉ®úÉ “iÉÞiÉÒªÉ {ÉÖ®úºEòÉ®”ú |ÉnùÉxÉ ÊEòªÉÉ MɪÉÉ ½èþ

+É{ÉEòÉ ¤ÉéEò xÉ®úÉEòɺÉ(¤ÉéEò) ®úÉÆSÉÒ EòÉ ºÉ¨Éx´ÉªÉEò ½èþ*

27

20. SECURITY

The Bank adopted the best security arrangement withthe implementation of the state of the art technology asper RBI and IBA guidelines. All the newly openedbranches have been equipped with fire alarm systems/integrated Fire cum Burglary alarm system.

The Bank is dedicated to ensure secured environmentfor the customers at the ATMs, branches and e-lobbies.All the high-risk branches have been provided with CCTVsystems of latest specifications.

Dedicated counters have been established for exchangeof soiled notes and distribution of coins in identifiedbranches. Coin melas at public places also have beenorganized.

Coin vending machines have also been installed atimportant locations, both on-site and off-site. To arrestthe influx of counterfeit notes in the country's system andto implement clean note policy of RBI, the Bank hasprovided more than 600 Note Sorting Machines to theBranches and currency chests.

21. CUSTOMER SERVICE

21.1 BANKING CODES & STANDARDS BOARD OF INDIA(BCSBI)

Your Bank is a member of BCSBI. For ensuring good customerservice, we have already implemented the codes evolved byBCSBI viz., "Code of Bank's Commitment to Customers "and "Code of Bank's Commitment to Micro & SmallEnterprises".

The Bank has been ranked at 28th position among 47 memberbanks. Within 26 PSBs, your Bank has been ranked 7th.

21.2 CITIZEN'S CHARTER

The Bank has a Citizen's Charter wherein major activitiesinclude:

a) To bring about awareness amongst customers regardingservices offered as per standards laid down in the BCSBI,promote fair banking practices by maintainingtransparency in various products and services offeredby the Bank by making banking an enriching experience.We also give a copy of BCSBI codes to customers at thetime of opening accounts.

b) Give service to special customers like pensioners, seniorcitizens, customers in rural and semi-urban areas.

c) Operational activities like payment of balance in accountsof the deceased customers to survivors/ claimants,exchange of soiled/slightly mutilated currency notes, safedeposit vaults (lockers).

d) Grievance redressal mechanism for improvement inservices.

20. ºÉÖ®úIÉÉ Ê´É¦ÉÉMÉú

¤ÉéEò xÉä ¦ÉÉÊ®ú¤ÉéEò +Éè®ú +É

28

Training is imparted to the staff members emphasizing theimportance and the means of putting the Charter into practice.

21.3 CUSTOMER RIGHTS POLICY

The Bank's Customer Rights Policy spells out the rights of thecustomer and the responsibilities of the Bank. The Policyapplies to all products and services offered by the Bank or itsagents, whether provided across the counter, over phone, bypost, through interactive electronic devices, on internet or byany other method. The Policy covers the following aspects:

i Right to Fair Treatmentii Right to Transparency, Fair and Honest Dealingiii Right to Suitabilityiv Right to Privacyv Right to Grievance Redress and Compensation

21.4 CUSTOMER GRIEVANCES CELLCustomers can lodge their complaint through a separate linkprovided on Bank's website. For expeditious redressal ofcustomer complaints, the Bank has Customer GrievanceRedressal Cell at Head Office. Complaints received fromcustomers are redressed within the time lines and suitablereplies are sent to the customers. Customer complaints whichare forwarded by Ministry of Finance, DPG, RBI, VIPs areresolved on priority basis.

Several initiatives were also taken to remain customer focussedby providing fast service, bringing in diversified products/services, responding to customers' queries and redressal ofcustomer complaints.

Customer Service Committees have been formed at each andevery branch and at Zonal offices. The Customer ServiceCommittee meets once a month to study complaints/suggestions,cases of delay, difficulties faced/reported bycustomers/members of the Committee and evolve ways andmeans of improving customer service. The members includea senior citizen too.

21.5 INTERNAL OMBUDSMAN

As per direction of Damodaran Committee Recommendations,the Bank has appointed an Internal Ombudsman (ChiefCustomer Service Officer) for speedy, transparent and qualityredressal of complaints internally. Several initiatives were alsotaken to remain customer focussed by providing fast service,bringing in diversified products/services, responding tocustomer3s' queries and redressal of customer complaints.

22. FUTURE PLANS

The Bank is focusing on retail business and leveraging bankingtechnology in addition to other core banking activities. Focusareas of business for FY17 will be growth in Retail Business,Improving Asset Quality and credit monitoring, customeracquisition and maximizing usage of e-delivery channels toreduce costs.

xÉÉMÉÊ®úEò +ÊvÉEòÉ®ú {ÉjÉ Eäò ¨É½þi´É iÉlÉÉ

29

23. BOARD OF DIRECTORS

The details of meetings of the Board and its Committees duringFY16 are as under:

|ÉÉä.®úÉvÉÉ +É®ú. ¶É¨ÉÉÇ xÉä 28.01.2016 EòÉä +ƶÉEòÉʱÉEò MÉè®ú-ºÉ®úEòÉ®úÒ ÊxÉnäù¶ÉEòEäò °ü{É ¨Éå ¤ÉéEò ¨Éå EòɪÉǦÉÉ®ú OɽþhÉ ÊEòªÉÉ* |ÉÉä. ¶É¨ÉÉÇ ®ú̈ ÉxÉ ¨ÉÖÆVÉÉ±É (½þÒ®úÉä¨ÉÉä]õ®ú EòÉì{ÉÇ) EòÒ SÉäªÉ®ú |ÉÉä¡äòºÉ®ú iÉlÉÉ ̈ ÉèxÉäVɨÉå]õ bä÷́ ɱÉ{ɨÉäx]õ

30

BUSINESS RESPONSIBILITY REPORT-MARCH 2016

Allahabad Bank was founded in the year 1865 by a group ofEuropeans in the historic city of Allahabad. Today, it is one ofIndia's oldest joint stock bank. The Bank's Head Office wasshifted to Kolkata in 1923.

The Bank with its 151 branches was nationalized in 1969 with13 other major commercial banks to come under the ownershipof Government of India. The Bank has undertaken strategicplanning in order to strengthen financial foundation throughboth geographical and product diversification. In addition to3209 branches across the length and breadth of India, theBank has its first overseas branch at Hong Kong.

The Bank is engaged in providing banking and financialservices to its customers and majority of Bank products fallunder viz. deposits, loans & advances and remittances.

Section A: General Information about the Company

1. Corporate Identity Number (CIN) of the Company : NotApplicable

2. Name of the Company : Allahabad Bank

3. Registered address : Allahabad Bank, Head Office, 2 NSRoad, Kolkata - 700001

4. Website : www.allahabadbank.in

5. E-mail id : cmd@allahabadbank.in

6. Financial Year reported : 2015-16

7. Sector(s) that the Company is engaged in (industrialactivity code-wise) :

Financial Services, mainly banking

8. List three key products/services that the Companymanufactures/provides (as in balance sheet)

(1) Deposits (2) Advances & (3) Ancillary services

9. Total number of locations where business activity isundertaken by the Company

i. Number of International Locations : Presently, theBank has one branch in Hong Kong (China)

ii. Number of National Locations : Allahabad Bankhas 7 Field General Manager Offices (FGMOs),49 Zonal Offices, 3209 branches and 1212 ATMsas on 31st March, 2016.

10. Markets served by the Company - National & Internationalmarket as mentioned in point no 9(i)

Both national & international markets with large branchnetwork at national level.

Section B: Financial Details of the Company

1. Paid up Capital (INR) : `613.80 crore

2. Total Turnover (INR) : Total Business : `3,58,352 crore,

(Total Deposits:`2,00,644 crore + Gross Advances :`1,57,707 crore)

3. Total profit after taxes (INR) : Loss of `743.31 crore

´ªÉ´ÉºÉÉªÉ =kÉ®únùÉʪÉi´É Ê®ú{ÉÉä]Çõ-¨ÉÉSÉÇ 2016

JÉÆb÷ Eò: EÆò{ÉxÉÒ Eäò ºÉƤÉÆvÉ ¨Éå ºÉɨÉÉxªÉ ºÉÚSÉxÉÉ

1. EÆò{ÉxÉÒ EòÒ EòÉ®ú{ÉÉä®äú]õ {ɽþSÉÉxÉ ºÉÆ. (ºÉÒ+É

31

4. Total Spending on Corporate Social Responsibility (CSR)as percentage of profit after tax (%):

During FY16, the total spending on CSR activities was`10.99 crore.

In FY16, the Bank has incurred losses to the tune of`743.31 crore

5. List of activities in which expenditure in 4 above has beenincurred:-

a. Swachh Bharat Kosh for providing toilets for girls.b. Provision of electric fans in government schoolsc. Welfare of the Girl Child by way of providing

scholarship

d. Contributed to Allahabad Bank Rural DevelopmentTrust for Financial Assistance to 21 RSETIs and18 FLCs, organising more Farmers' Clubs andFarmers' Training Centers.

e. Contributed to Udayan Care for helping orphaned& abandoned girls nurtured at Udayan Ghar, Jaipur.

Section C: Other Details

1. Does the Company have any Subsidiary Company/Companies?

Yes, The company has one subsidiary and two jointventures, viz.

a) AllBank Finance Ltd.

b) Universal Sompo General Insurance Company

c) ASREC

2. Do the Subsidiary Company/Companies participate in theBR Initiatives of the parent company? If yes, then indicatethe number of such subsidiary company(s)

No

3. Do any other entity/entities (e.g. suppliers, distributorsetc.) that the Company does business with, participatein the BR initiatives of the Company? If yes, then indicatethe percentage of such entity/entities? [Less than 30%,30-60%, More than 60%]

No

Section D: BR Information

1. Details of Director/Directors responsible for BR

a) Details of the Director/Director responsible forimplementation of the BR Policy /policies

DIN Number : 06965688

Name : Shri J K Singh Kharb

Designation : Executive Director

4. Eò®ú {ɶSÉÉiÉ ±ÉÉ¦É Eäò |ÉÊiɶÉiÉ Eäò °ü{É ¨Éå EòÉ®ú{ÉÉä®äú]õ ºÉɨÉÉÊVÉEò=kÉ®únùÉʪÉi´É {É®ú EÖò±É ´ªÉªÉ (%)Ê´ÉkÉÒªÉ ´É¹ÉÇ 2016 Eäò nùÉè®úÉxÉ ºÉÒBºÉ+É®ú MÉÊiÉÊ´ÉÊvɪÉÉå {É®ú EÖò±É ´ªÉªÉ`10.99 Eò®úÉäc÷ lÉÉ*Ê´ÉkÉÒªÉ ´É¹ÉÇ 2016 ¨Éå ¤ÉéEò EòÉä `743.31Eò®úÉäc÷ EòÉ PÉÉ]õÉ ½Öþ+É ½èþ*

5. ={ɪÉÖÇHò 4 ¨Éå ÊEòxÉ MÉÊiÉÊ´ÉÊvɪÉÉå {É®ú JÉSÉÇ ÊEòªÉÉ MɪÉÉ*

Eò. ¤ÉÉʱÉEòÉ+Éå Eäò ʱÉB ¶ÉÉèSÉÉ±ÉªÉ ¤ÉxÉÉxÉä ½äþiÉÖ º´ÉSUô ¦ÉÉ®úiÉ EòÉä¹ÉJÉ. ºÉ®úEòÉ®úÒ ºEÚò±ÉÉå ¨Éå ʤÉVɱÉÒ Eäò {ÉÆJÉÉå EòÒ ´ªÉ´ÉºlÉÉMÉ. ¤ÉÉʱÉEòÉ Eò±ªÉÉhÉ ½äþiÉÖ UôÉjÉ´ÉÞÊiÉ |ÉnùÉxÉ Eò®úxÉÉ

PÉ. 21 +É®úºÉä]õÒ +Éè®ú 18 B¡òB±ÉºÉÒ EòÉä Ê´ÉkÉÒªÉ ºÉ½þɪÉiÉÉ ½äþiÉÖ

32

b) Details of the BR head

Gò¨É ºÉÆ. S.No. Ê´É´É®úhÉ/ Particulars ¤ªÉÉè®úÉ/Details

1. b÷Ò+É

33

2a. If answer to S.No. 1 against any principle, is 'No', pleaseexplain why:(Tick up to 2 options)

Gò¨É ºÉÆ. |ɶxÉ {ÉÒ {ÉÒ {ÉÒ {ÉÒ {ÉÒ {ÉÒ {ÉÒ {ÉÒ {ÉÒS.No. Questions P P P P P P P P P

1 2 3 4 5 6 7 8 91. EÆò{ÉxÉÒ ÊºÉrùÉÆiÉÉå EòÉä xɽþÓ ºÉ¨ÉZÉø {ÉÉ

34

In order to facilitate quick and efficient service to theshareholders, Allahabad Bank has set up Customers'Grievances Redressal Cell (CGRC) & Investors'Grievances Cell at its Head Office, Kolkata. Customers,Shareholders and investors may contact these Cell forany assistance

The details of Complaints during FY 2015-16 is as under:-

Ê´ÉkÉÒªÉ ´É¹ÉÇ 2015-16 Eäò+É®Æú¦É ¨Éå ±ÉÆʤÉiÉ Ê¶ÉEòɪÉiÉÉå

EòÒ ºÉÆJªÉÉComplaints

pending at thebeginning of the FY

2015-16

Ê´ÉkÉÒªÉ ´É¹ÉÇ 2015-16 EäònùÉè®úÉxÉ |ÉÉ{iÉ Ê¶ÉEòɪÉiÉÉå

EòÒ ºÉÆJªÉÉComplaints

received during FY2015-16

Ê´ÉkÉÒªÉ ´É¹ÉÇ 2015-16 EäònùÉè®úÉxÉ ÊxɺiÉÉÊ®úiÉ

ʶÉEòɪÉiÉÉå EòÒ ºÉÆJªÉÉComplaints

resolved duringFY 2015-16

31.03.2016 EòÉäªÉlÉÉκlÉÊiÉ ±ÉÆʤÉiÉ

ʶÉEòɪÉiÉÉå EòÒ ºÉÆJªÉÉComplaints

pending as on31.03.2016

OÉɽþEò/Customers 136 5999 5978 157

ÊxÉ´Éä¶ÉEò/ Investors 0 1102 1100 2

EÖò±É/ Total 136 7101 7078 159

Principle 2: Businesses should provide goods andservices that are safe and contribute tosustainability throughout their life cycle

1. List up to 3 of your products or services whose designhas incorporated social or environmental concerns, risksand/or opportunities.

a. Bank has introduced Green PIN generation for ATM Cardsthrough Internet Banking.

b. Change of both Log-in & Transaction passwords on-linefor Internet Banking Application has been implemented.

In both the above cases, paper based PIN & Passwordshave been avoided.

c. Ours is a Banking Institution dealing in credit productssuch as Kisan Credit Cards, Self Help Group, overdraftto small savings accounts opened under PMJDY andvarious agri products, which directly address socialconcerns. Our products do not pose any risk to the societyat large. Rather we help society by providing employmentopportunity to unemployed persons through MUDRA,PMEGP & various other self employment schemes.

2. For each such product, provide the following details inrespect of resource use (energy, water, raw material etc.)per unit of product(optional):

i. Reduction during sourcing/production/ distributionachieved since the previous year throughout thevalue chain?

Being a service organization this section is notapplicable

ii. Reduction during usage by consumers (energy,water) has been achieved since the previousyear?

Being a service organization this section is notapplicable.

ʽþiÉvÉÉ®úEòÉå EòÉä iÉi{É®ú +Éè®ú EòÉ®úMÉ®ú ºÉä́ ÉÉ |ÉnùÉxÉ Eò®úxÉÉ ºÉ½þVÉ ¤ÉxÉÉxÉäEäò =qäù¶ªÉ ºÉä

35

3. Does the company have procedures in place forsustainable sourcing (including transportation)?

i. If yes, what percentage of your inputs was sourcedsustainably? Also, provide details thereof, in about 50words or so.

Not Applicable for a Financial Institution

4. Has the company taken any steps to procure goods andservices from local & small producers, includingcommunities surrounding their place of work?

If yes, what steps have been taken to improve theircapacity and capability of local and small vendors?

Being a financial institution and a service organization,the scope to procure goods and services from local andsmall vendors is limited. The Bank encourages the MSMEborrowers to source their inputs from micro enterprise

5. Does the company have a mechanism to recycle productsand waste? If yes what is the percentage of recycling ofproducts and waste (separately as 10%).Also, provide details thereof, in about 50 words or so.

Not Applicable

Principle 3: Businesses should promote the wellbeing ofall employees

1. Please indicate the Total number of employees: 24137

2. Please indicate the Total number of employees hired ontemporary/contractual/casual basis : 560

3. Please indicate the Number of permanent womenemployees : 4432

4. Please indicate the Number of permanent employeeswith disabilities : 551

5. Do you have an employee association that is recognizedby management. Yes.

a. Award Staff majority recognized union:

All India Allahabad Bank Employees' Co-ordinationCommittee

(affiliated to AIBEA)

b. Officers' majority recognized Association:

All India Allahabad Bank Officers' Association(affiliated to AIBOC)

6. What percentage of your permanent employees ismembers of this recognized employee association?

a. Award Staff Union : 65%

b. Officers' Association : 71%

7. Please indicate the Number of complaints relating to childlabour, forced labour, involuntary labour, sexualharassment in the last financial year and pending, as onthe end of the financial year.

3. CªÉÉ »ÉÉäiÉÉå EòÒ ÊxÉ®ÆúiÉ®úiÉÉ(]ÅõÉƺÉ{ÉÉä]æõ¶ÉxÉ ºÉʽþiÉ) ½äþiÉÖ EÆò{ÉxÉÒ EòÒ EòÉä

36

Ê´ÉkÉÒªÉ ´É¹ÉÇ Eäò nùÉè®úÉxÉ nùVÉÇʶÉEòɪÉiÉÉå EòÒ ºÉÆJªÉÉNo of complaintsfiled during thefinancial year

Ê´ÉkÉÒªÉ ´É¹ÉÇ Eäò +ÆiÉ ¨ÉåªÉlÉÉκlÉÊiÉ ±ÉÆʤÉiÉ

ʶÉEòɪÉiÉÉå EòÒ ºÉÆJªÉÉNo of Complaints

pending as on endof the financial year

¸ÉähÉÒCategory

Gò¨É ºÉÆ.Sl. No.

1. ¤ÉÉ±É ¸ÉʨÉEò/VɤɮúxÉ ¨ÉVÉnÚù®úÒ/+º´ÉèÎSUôEò ¨ÉVÉnÚù®úÒChild labour/forced Labour/involutary labour ¶ÉÚxªÉ / NIL ¶ÉÚxªÉ / NIL

2. ªÉÉèxÉ =i{ÉÒc÷xÉ / Sexual harassment 2 ¶ÉÚxªÉ / NIL

3. ®úÉäVÉMÉÉ®ú ¨Éå ¦Éänù¦ÉÉ´É/ Discriminatory employment ¶ÉÚxªÉ / NIL ¶ÉÚxªÉ / NIL

Principle 4: Businesses should respect the interests of,and be responsive towards all stakeholders,especially those who are disadvantaged,vulnerable and marginalized

1. Has the company mapped its internal and externalstakeholders? Yes/No

Yes. The stake holders of the Bank include Government,Investors, Employees & Customers of the Bank.

2. Out of the above, has the company identified thedisadvantaged, vulnerable & marginalized stakeholders.

The Bank is committed to serve its customersmeticulously as per the BCSBI code. The Bank hasidentified the disadvantaged, vulnerable andmarginalized stakeholders. They are broadly classifiedas weaker section. Our special emphasis is evidentfrom outstanding credit to weaker section as on31.03.2016, which was 13.60% of Adjusted Net BankCredit, even as RBI regulatory requirement is for 10%only.

3. Are there any special initiatives taken by the company toengage with the disadvantaged, vulnerable andmarginalized stakeholders. If so, provide details thereof,in about 50 words or so.

RSETIs provide vocational training to unemployedrural youth and women.

FLCs are imparting financial literacy to rural masses.

Principle 5 : Businesses should respect and promotehuman rights

1. Does the policy of the company on human rights coveronly the company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

The Bank is aware of the human rights content of theConstitution of India and respects the freedom ofassociations and the right to collective bargaining. TheBank does not discriminate on the basis of national origin,citizenship, colour, race, belief, religion, ancestry, maritalstatus, gender, disabilities, age, sexual orientation, placeof birth, social status, or any other basis prohibited bythe law.

2. How many stakeholder complaints have been receivedin the past financial year and what percent wassatisfactorily resolved by the management?

ʺÉrùÉÆiÉ 4: ´ªÉ´ÉºÉÉªÉ ºÉ¦ÉÒ Ê½þiÉvÉÉ®úEòÉå EòÉä ʴɶÉä¹ÉEò®ú ´ÉÆÊSÉiÉ, +ºÉÖ®úÊIÉiÉ+Éè®ú ½þÉʶÉB {É®ú ®ú½þxÉä́ ÉɱÉÉå Eäò ʽþiÉÉå EòÉ ºÉ¨¨ÉÉxÉ Eò®úxÉä ´ÉɱÉÉ+Éè®ú =xÉEäò |ÉÊiÉ +xÉÖEò±É ½þÉäxÉÉ SÉÉʽþB*

1. CªÉÉ EÆò{ÉxÉÒ xÉä +{ÉxÉä +ÉÆiÉÊ®úEò +Éè®ú ¤ÉÉÁ ʽþiÉvÉÉ®úEòÉå EòÉ JÉÉEòÉiÉèªÉÉ®ú ÊEòªÉÉ ½èþ? ½þÉÆ/xɽþÓ

½þÉÆ, ¤ÉéEò Eäò ʽþiÉvÉÉ®úEòÉå ¨Éå ºÉ®úEòÉ®ú, ÊxÉ´Éä¶ÉEò, ¤ÉéEò Eäò Eò¨ÉÇSÉÉ®úÒ +Éè®úOÉɽþEò ¶ÉÉÊ¨É±É ½éþ*

2. ={ɪÉÖÇHò ¨Éå ºÉä CªÉÉ EÆò{ÉxÉÒ xÉä ´ÉÆÊSÉiÉ, +ºÉÖ®úÊIÉiÉ +Éè®ú ½þÉʶÉB {É®ú®ú½þxÉä́ ÉɱÉä ʽþiÉvÉÉ®úEòÉå EòÒ {ɽþSÉÉxÉ EòÒ ½èþ*¤ÉéEò +{ÉxÉä OÉɽþEòÉå EòÉä ¤ÉÒºÉÒBºÉ¤ÉÒ+É

37

The total number of complaints received during FY'16 is7101, out of which 7078 complaints have been resolvedsatisfactorily.

Principle 6 : Business should respect, protect, and makeefforts to restore the environment

1. Does the policy related to Principle 6 cover only thecompany or extends to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.

Yes

2. Does the company have strategies/ initiatives to addressglobal environmental issues such as climate change,global warming, etc? Y/N. If yes, please give hyperlinkfor webpage etc.

Yes

3. Does the company identify and assess potentialenvironmental risks? Y/N

NO. However, the Bank is committed to reducing itscarbon footprint at its places of operation.

4. Does the company have any project related to CleanDevelopment Mechanism? If so, provide details thereof,in about 50 words or so. Also, if Yes, whether anyenvironmental compliance report is filed?

Various green banking initiatives undertaken by the Bankinclude core banking solution, Green PIN generation forATM Cards through Internet Banking , ATMs, biometricATM, & E-lobbies in branches and e-governance for itsstaff and administrative areas to promote paperlessbanking. While sanctioning of loans, priority is given togreen building.

5. Has the company undertaken any other initiatives on -clean technology, energy efficiency, renewable energy,etc. Y/N. If yes, please give hyperlink for web page etc.

The Bank has financed many Solar Power projects,Biomass, Small Hydro and Wind Power projects, all ofwhich are renewable energy projects.

6. Are the Emissions/Waste generated by the companywithin the permissible limits given by CPCB/SPCB forthe financial year being reported?

The Bank is a service based organization and hence doesnot emit any toxic hazardous pollutants.

7. Number of show cause/ legal notices received fromCPCB/SPCB which are pending (i.e. not resolved tosatisfaction) as on end of Financial Year.

The Bank is a service based organization.

Principle 7 : Businesses, when engaged in influencingpublic and regulatory policy, should do so ina responsible manner

1. Is your company a member of any trade and chamber orassociation? If Yes, Name only those major ones thatyour business deals with:

Ê´ÉkÉÒªÉ ´É¹ÉÇ 2016 Eäò nùÉè®úÉxÉ EÖò±É 7101 ʶÉEòɪÉiÉå |ÉÉ{iÉ ½Öþ

38

The Bank is a member of :

a. ASSOCHAM

b. Confederation of Indian Industries (CII)

c. Indian Chambers of Commerce (ICC)

d. MCC Chamber of Commerce & Industry

e. Bengal National Chamber of Commerce & Industry

2. Have you advocated/lobbied through above associationsfor the advancement or improvement of public good? Yes/No; if yes specify the broad areas ( drop box: Governanceand Administration, Economic Reforms, InclusiveDevelopment Policies, Energy security, Water, FoodSecurity, Sustainable Business Principles, Others)

The Bank, being one of the mid-sized Public Sector Banksin the country, works closely with policymakers and helpsin evolving policies that govern the functioning andregulation of the Banking industry. The Bank gives itsinputs to the regulators and policy makers regardingvarious economic and financial issues plaguing theeconomy.

Principle 8 : Businesses should support inclusive growthand equitable development

1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related toPrinciple 8? If yes details thereof. Development in anycountry is incomplete if it is not inclusive and does notcover the underprivileged strata of the society. Banksthrough its various initiatives are striving to reach andbring these sections into the fold of basic bankingservices.

The Bank has actively promoted financial inclusionand has covered 17732 allocated villages mappedto 4355 Kiosks in Rural areas and 616 Kiosks inurban areas to reach the unbanked, deprived,underprivileged segment of the society through