1. INVESTMENTS :-

    

1. Investments amounting to '6962.00 crores (previous year '7657.00 crores) are kept as margin with
   the Reserve Bank of India/Clearing Corporation of India Limited towards Real Time Gross Settlement
   (RTGS)/REPO/CBLO transactions.

    

2. The valuation of the securities held in private equity funds are valued as per latest available information.

1. FIXED ASSETS :-

    

1. In respect of premises having gross value of '0.42 crore (Previous year '0.42 crore) pending
   completion of certain legal formalities/ procedural actions, title deeds are yet to be executed/
   registered in favour of the Bank.

Fixed Assets : Gross Value of fixed assets (other than premises) includes '746.61 crores (previous
years '736.43 crores) upto 31.03.2016 of Bank’s share jointly owned by SBI and other Associate
Bank's towards Hardware & Software.

2. LOAN :-

1. In case of restructured loans as standard assets under CDR/Non-CDR, classification of advances
   and consequent income recognition have been done based on major compliances of terms and
   conditions of restructured package including extension period wherever applicable.

In terms of the RBI guidelines on provision for the sacrifice amount on restructured / rescheduled
advances, erosion in fair value of advances has been provided amounting to '218.58 crores (previous
year '436.75 crores) and the shortfall in the value of securities has been ignored.

In terms of RBI Circular No.BP.BC.83/21.04.048/2014-15 dated 01.04.2015 read together with
circular No. BP.BC.92/21.04.048/2015-16 dated 18.04.2016 regarding amortization of provision
on fraud accounts over a period not exceeding four quarters starting from the quarter in which
fraud is detected, bank has fully provided the amounts pertaining to such frauds and there was no
unamortized balance as on 31st March, 2016.

RBI, with a view to provide incentive for early sale of NPAs, has permitted the banks to spread over
any shortfall, if the sale value is lower than the Net Book Value, over a period of two years and is
available for NPAs sold on or after 26th Feb, 2014 to 31st March, 2016. Accordingly, a sum of '55.29
crores has been provided during the year ('66.38 crores till 31st March 2016) leaving the balance of
'102.94 crores to be provided for in subsequent period.

In compliance to the RBI Letter No. DBR.N0.BP.13018/21.04.048 /2015-16 dated 12.04.2016,
bank has provided a sum of '30.96 crore being 7.5% of the existing outstanding of '412.80 crores
as on 31st March, 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 RBI.

In accordance with UDAY (Ujwal Discom Assuarance Yojna) Scheme for operational and financial
turnaround of Power Distribution Companies (DISCOMS) during FY 2015-16 the bank had subscribed
to NON-SLR SDL Bonds of Government of Rajasthan (GoR) amounting to '804.72 crore, GoR
guaranteed DISCOM Bonds of '254.50 crore (Segment not envisaged to be converted into SDL
during 2016-17) and GoR guaranteed DISCOM Bonds of '72.28 crore (Segment envisaged to be
converted into SDL during 2016-17) against settlement of Rajasthan DISCOM Debts of '1131.50
crore.

In compliance to the RBI letter No.: DBR.BP.NO.11657/21.04.132/2015-16 dated 17th March, 2016 bank

has made the provision as under-

1. '38.18 crore in respect of segment not envisaged to be converted into SDL in FY 2016-17 @15%
   of '254.50 crore.

    

2. No provision has been made for the segment of '72.28 crore envisaged to be converted into SDL
   during FY 2016-17.

    

3. Provision of '10.01 crore has been made for diminution in the fair value of loan/ DISCOM bonds for
   both the segments.

Accordingly, a total provision of '48.19 crore has been made. The DISCOM Bonds of '254.50 crore
not envisaged to be converted into SDL have been classified as Non-Performing Investment as per
aforesaid RBI letter.

1. In compliance of RBI letter No. DBS. Co. PPD/ AQR/ 6371/ 11.01.01/15-16 dated 02.12.2015 and
   subsequent letter No. DBS. Co. PPD/ AQR/ 1221/ 11.01.021/ 2015-16 dated 20.04.2016 pursuant
   to Asset Quality Review (AQR) carried under section 35 of BR Act 1949, by RBI, the Bank has made
   the classification of Advances and provisioning which was required to be done by 31.03.2016, as
   suggested by RBI.

3. The Board of Directors proposed to declare dividend of 143% i.e '14.30 per share ( PY '14.30 per share)

(face value of share '10/ per share) for the FY 2015-16.

4. Inter Office Adjustment accounts are subjected to reconciliation which is an ongoing exercise. On completion

of matching/reconciliation in respect of the above accounts, the management does not anticipate any

material impact on the financial statement.

5. During the year, the Bank has paid '217.06 crore on account of wage arrear settlement relating to the
   period from November 2012 to March 2015 out of provision of '264.40 crores made in earlier years.During
   the year excess provision of '47.34 crores has been reversed to employee cost.

    

   1. DISCLOSURES REQUIRED AS PER RBI GUIDELINES

1. Capital

Bank’s Capital to Risk-Weighted Asset Ratio (Capital Adequacy Ratio) under Basel II and Basel III are
calculated in accordance with RBI’s “Prudential Guidelines on Capital Adequacy and Market Discipline:
New Capital Adequacy Framework (NCAF)” and “Basel III Capital Regulations” respectively. From March
31, 2016 Under Basel III Capital regulation, Bank is required to maintain a minimum Capital Adequacy
Ratio of 9.00% plus Capital Conservation Buffer (CCB) of 0.625% on an ongoing basis for credit risk,
market risk and operational risk. For Basel II, however, Bank has to maintain a minimum Tier I Capital Ratio
of 6.00% and Capital Adequacy Ratio of 9.00% whereas, as per Basel III, Bank has to keep a minimum
Common Equity Tier I (CET 1) Ratio of 5.50% and a Tier 1 Ratio of 7.00% as on 31.03.2016. The Bank’s
Capital Adequacy ratio, calculated in accordance with the RBI guidelines under both Basel II and Basel III
framework.

(The Bank’s Capital Adequacy Ratios as on March 31, 2016 are higher than the minimum required under
the Basel II and Basel III framework.

The difference between Risk Weighted Assets and Capital Funds under the Basel II and Basel III framework
is a net impact of the following key changes:

1. Investments in RRB is deducted from Capital in Basel II (50% from Tier 1 and 50% from Tier II), whereas it
   is risk weighted in Basel III (250% Risk Weight).

2. Innovative Perpetual Debt Instruments and Subordinated Bonds, which are not Basel III compliant, are
   grandfathered as per Basel III Capital Framework.