Amount of Rs. 23.35 crore (Previous Year Rs. 26.79 crore) is recognized as an expense towards Other Long term Employee Benefts included under the head 'Payments to and Provisions for Employees' in proft and loss account.

2. Accounting Standard 17: Segment Reporting

Part A: Business Segments

Pursuant to RBI guidelines, the Bank has re-classifed the business segments in which the Bank operates into:

a. Corporate / Wholesale Banking

b. Retail Banking

c. Treasury and

d. Other Banking Operations

The classifcation has been done on the basis of following criteria:

Corporate / Wholesale Banking: All loan and advance accounts with exposure of above Rs. 5 crore are classifed under wholesale / corporate Banking.

Retail: All loan and advance accounts which are not covered above will be taken as Retail Banking.

Treasury: Entire investment portfolios are classifed under Treasury segment.

Other Banking Operations: The Bank does not have Other Banking Operations segment.

Allocation of Income and Expenses and Assets / Liabilities:

a. Income and Expenses and Assets / Liabilities directly attributed to particular segment are allocated to the relative segment.

b. Items that are not directly attributable to segments are allocated to retail and wholesale segments in proportion to the business managed / ratio of number of employees / ratio of directly attributable income.

c. The Bank has certain common assets / liabilities and income / expense that cannot be attributed to any particular segment and hence the same are treated as unallocated.

b. Contingent liabilities

Liabilities at Item - I and VIII of Schedule 12 of the Balance Sheet are dependent upon the outcome of court / arbitration / out of court settlement, disposal of appeals, the amount being called up, terms of contractual obligations, development and raising of demand by concerned parties, respectively.

c. Claims against the Bank, not acknowledged as debts

Claims against the Bank not acknowledged as debt in respect of cases subjudice is Rs.7.40 crore as on 31.03.2016.

d. Liability on account of outstanding forward exchange contracts

The bank enters into foreign exchange contracts, currency options,forward rate agreements, currency swaps and interest rate swaps with inter-Bank participants on its own account and for customers. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. Currency swaps are commitments to exchange cash fows by way of interest/principal in one currency against another, based on pre-determined rates. Interest rate swaps are commitments to exchange fxed and foating interest rate cash fows. The notional amounts that are recorded as Contingent Liabilities, are typically amounts used as a benchmark for the calculation of the interest component of the contracts.

e. Guarantees given on behalf of Constituents, acceptance, endorsements and other obligations

As part of its commercial banking activities, the Bank issues Documentary credits and guarantees on behalf of its customers Documentary credits enhance the credit standing of the customers of the Bank. Guarantees generally represent irrevocable assurances that the Bank will make payment in the event of the customer failing to fulfll his fnancial or performance obligations.

f . Other items for which the bank is contingently liable

The Bank is a party to various taxation matters in respect of which appeals are pending. These are being contested by the Bank and not provided for. Further, the Bank has made commitments to subscribe to shares in the normal course of business.

3. Unamortised Pension and Gratuity Liabilities

In accordance with the provision of the RBI Circular number DBOD.BP.80/21.04.018/2010-11, the bank had amortized the amount of Rs.671.91 crores (being the additional liability on account of reopening of pension option and enhancement in the limit of Gratuity from Rs.3.00 Lakhs to Rs.10.00 Lakhs payable to its employees) over a period of fve years commencing from the year ended 31.03.2011. Accordingly, Rs.134.38 crores being the ffth and fnal installment of amortization was charged to the Proft and Loss Account during the year ended 31.03.2015. Current year: NIL.

4. Unhedged Foreign Currency Exposure

In terms of RBI circular No. RBI/2013-14/448 DBOD.No.BP.BC.85/21.06.200/2013-14 dated 15.01.2014 and circular No. RBI/2013-14/620 DBOD.No.BP.BC.116/21.06.200/2013-14 dated 03/06/2014 on requirement of incremental capital and provisions for Banks on account of Unhedged Foreign Currency Exposure of borrowers, we have implemented the provisions with efect from 01/04/2014. The total provisions comes to Rs. 10.06 crore and the same has been provided for as on 31.03.2016.

5. Qualitative disclosure around LCR

a. Main drivers of LCR and evolution of contribution of inputs

The Liquidity Coverage Ratio (LCR) Standard aims to ensure that a bank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLAs) that can be converted into cash to meet its liquidity needs for a 30 calendar days time horizon under a signifcantly severe liquidity stress scenario, by which time it is assumed that appropriate corrective actions can be taken. The LCR position depends upon the level of High Quality Liquid Assets (HQLA) and level of infows and outfows in 30 days stress horizon computed as per the RBI guidelines in this regard.

b. Intra period changes

The intra period changes are mainly on account of changes in un encumbered excess SLR positions.

c. The composition of High Quality Liquid Assets(HQLA)

Banks' High Quality Liquid Assets consists of the following

i. Cash

ii. Balance with RBI in excess of CRR requirement.

iii. Unencumbered portion of investments in Government securities in excess of SLR requirement.

iv. Investments in Government securities held within the mandatory SLR requirement, to the extent allowed by RBI under Marginal Standing facility(MSF). v. Investment in Government Securities held up to 8% of Net Demand and Time Liabilities(NDTL) permissible under Facility to Avail Liquidity for Liquidity Coverage Ratio(FALLCR).

d. Concentration of funding

Banks' concentration from top 20 depositors is not signifcant and stood at 7.86% of total deposits as on March 31, 2016.

e. Derivative exposure and potential collateral calls

Bank does not have derivative business except forward contracts. Exposure to derivative contracts has been incorporated in the calculation of LCR.

f. Currency Mismatch in LCR

Bank does not have overseas operations. Hence, currency mismatch is not applicable.

g. Centralisation of liquidity management

Banks' liquidity management and monitoring is centralized. Bank has a Board adopted Asset Liability Management (ALM) policy in line with RBI regulation and guidelines.

h. Other Infows and outfows in the LCR calculation that are not captured

Infows and outfows are comprehensively captured in LCR.

6. INTER OFFICE ACCOUNTS

Transactions in Branch Clearing General Account (BCGA) and Drafts Account are being reconciled on an ongoing basis and steps for elimination of outstanding entries are in progress. In the opinion of the management, there are no signifcant items in the reconciliation to have any material consequential efect.

7. Previous year's fgures have been regrouped / rearranged wherever necessary.