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Auditor Report of State Bank of India

Mar 31, 2019

Report on Audit of the Standalone Financial Statements Opinion

1. We have audited the accompanying Standalone Financial Statements of State Bank of India (“the Bank”) which comprise the Balance Sheet as at March 31, 2019, the Profit and Loss Account and Cash Flow Statement for the year then ended, and Notes to Standalone Financial Statements including a summary of Significant Accounting Policies and other explanatory information in which are included returns for the year ended on that date of:

i. The Central offices, 16 Local Head offices, 1 Admin & Business unit, Global Market Unit, International Business Group, Corporate Accounts Group (Central), Commercial Client Group (Central), Stressed Asset Resolution Group (Central), Central Accounts Offices and 42 branches audited by us;

ii. 14,758 Indian branches audited by Statutory Branch Auditors;

iii. 38 Foreign branches audited by Local Auditors;

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet, the Profit and Loss Account are the returns from 8,447 Indian branches (including other accounting units) and those have not been subjected to audit. These unaudited branches account for 3 percent of advances, 11.44 per cent of deposits, 7.35 per cent of interest income and 12.80 per cent of interest expenses.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Banking Regulation Act, 1949 and State Bank of India Act 1955, in the manner so required for the Bank and are in conformity with accounting principles generally accepted in India and give:

a) true and fair view in case of the Balance Sheet, of the State of Affairs of the Bank as at March 31, 2019;

b) true balance of profit in case of Profit & Loss Account for the year ended on that date; and

c) true and fair view in case of Cash Flow Statement for the year ended on that date.

Basis for Opinion

2. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India (the ICAI). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Bank in accordance with the code of ethics issued by the ICAI together with ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

3. Key Audit Matters are those matters that in our professional judgment were of most significance in our audit of the Standalone Financial Statements for the year ended March 31, 2019. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the Key Audit Matters to be communicated in our report:-

Sr. No.

Key Audit Matters

Auditors’ Response

i

Classification of Advances and Identification of and provisioning for non-performing Advances in accordance with the RBI guidelines (Refer Schedule 9 read with Note 3 of Schedule 17 to the financial statements)

Advances include Bills purchased and discounted, Cash credits, Overdrafts loans repayable on demand and Term loans. These are further categorised as secured by Tangible assets (including advances against Book Debts), covered by Bank / Government Guarantees and Unsecured advances.

Our audit approach towards advances with reference to the IRAC norms and other related circulars / directives issued by RBI and also internal policies and procedures of the Bank includes the testing of the following:

- The accuracy of the data input in the system for income recognition, classification into performing and nonperforming Advances and provisioning in accordance with the IRAC Norms in respect of the branches allotted to us;

Advances constitute 59.38% of the Bank’s total assets. They are, inter-alia, governed by income recognition, asset classification and provisioning (IRAC) norms and other circulars and directives issued by the RBI from time to time which provides guidelines related to classification of Advances into performing and non-performing Advances (NPA). The Bank classifies these Advances based on IRAC norms as per its accounting policy No. 3.

Identification of performing and non-performing Advances involves establishment of proper mechanism. The Bank accounts for all the transactions related to Advances in its Information Technology System (IT System) viz. Core Banking Solutions (CBS) which also identifies whether the advances are performing or non-performing. Further, NPA classification and calculation of provision is done through another IT System viz. Centralised Credit Data Processing (CCDP) Application.

The carrying value of these advances (net of provisions) may be materially misstated if, either individually or in aggregate, the IRAC norms are not properly followed.

Considering the nature of the transactions, regulatory requirements, existing business environment, estimation/ judgement involved in valuation of securities, it is a matter of high importance for the intended users of the Standalone Financial Statements. Considering these aspects, we have determined this as a Key Audit Matter.

Accordingly, our audit was focused on income recognition, asset classification and provisioning pertaining to advances due to the materiality of the balances.

- Existence and effectiveness of monitoring mechanisms such as Internal Audit, Systems Audit, Credit Audit and Concurrent Audit as per the policies and procedures of the Bank;

We have examined the efficacy of various internal controls over advances to determine the nature, timing and extent of the substantive procedures and compliance with the observations of the various audits conducted as per the monitoring mechanism of the Bank and RBI Inspection.

In carrying out substantive procedures at the branches allotted to us, we have examined all large advances/stressed advances while other advances have been examined on a sample basis including review of valuation reports of independent valuer’s provided by the Bank’s management.

Reliance is also placed on Audit Reports of other Statutory Branch Auditors with whom we have also made specific communication.

We have also relied on the reports of External IT System Audit experts with respect to the business logics / parameters inbuilt in CBS for tracking, identification and stamping of NPAs and provisioning in respect thereof.

ii

Classification and Valuation of Investments, Identification

Our audit approach towards Investments with reference to

of and provisioning for Non-Performing Investments

the RBI Circulars / directives included the review and testing

(Schedule 8 read with Note 2 of Schedule 17 to the

of the design, operating effectiveness of internal controls

financial statements)

and substantive audit procedures in relation to valuation, classification, identification of Non Performing Investments,

Investments include investments made by the Bank in various Government Securities, Bonds, Debentures,

Provisioning / depreciation related to Investments. In particular,

a. We evaluated and understood the Bank’s internal

Shares, Security receipts and other approved securities.

Investments constitute 26.27% of the Bank’s total assets. These are governed by the circulars and directives of

control system to comply with relevant RBI guidelines regarding valuation, classification, identification of Non

the Reserve Bank of India (RBI). These directions of RBI, inter-alia, cover valuation of investments, classification of

Performing Investments, Provisioning / depreciation related to investments;

investments, identification of non-performing investments,

the corresponding non-recognition of income and

b. We assessed and evaluated the process adopted

provision there against.

The valuation of each category (type) of the aforesaid

for collection of information from various sources for determining fair value of these investments;

securities is to be done as per the method prescribed in

c. For the selected sample of investments in hand, we

circulars and directives issued by the RBI which involves

tested accuracy and compliance with the RBI Master

collection of data/information from various sources such

Circulars and directions by re-performing valuation for

as FIMMDA rates, rates quoted on BSE / NSE, financial

each category of the security. Samples were selected

statements of unlisted companies etc. Considering the

after ensuring that all the categories of investments

complexities and extent of judgement involved in the valuation, volume of transactions, investments on hand and degree of regulatory focus, this has been determined as a Key Audit Matter.

(based on nature of security) were covered in the sample;

Accordingly, our audit was focused on valuation of investments, classification, identification of Non Performing Investments and provisioning related to investments.

d. We assessed and evaluated the process of identification of NPIs, and corresponding reversal of income and creation of provision;

e. We carried out substantive audit procedures to recompute independently the provision to be maintained and depreciation to be provided in accordance with the circulars and directives of the RBI. Accordingly, we selected samples from the investments of each category and tested for NPIs as per the RBI guidelines and recomputed the provision to be maintained in accordance with the RBI Circular for those selected sample of NPIs;

f. We tested the mapping of investments between the Investment application software and the financial statement preparation software to ensure compliance with the presentation and disclosure requirements as per the aforesaid RBI Circular/directions.

iii

Assessment of Provisions and Contingent liabilities in respect of certain litigations including Direct and Indirect Taxes, various claims filed by other parties not acknowledged as debt. (Schedule 12 read with Note 18.9 of Schedule 18 to the financial statements) :

There is high level of judgement required in estimating the level of provisioning. The Bank’s assessment is supported by the facts of matter, their own judgment, past experience, and advices from legal and independent tax consultants wherever considered necessary. Accordingly, unexpected adverse outcomes may significantly impact the Bank’s reported profit and the Balance Sheet.

We determined the above area as a Key Audit Matter in view of associated uncertainty relating to the outcome of these matters which requires application of judgment in interpretation of law. Accordingly, our audit was focused on analysing the facts of subject matter under consideration and judgments/ interpretation of law involved.

Our audit approach involved :-

a. Understanding the current status of the litigations/tax assessments;

b. Examining recent orders and/or communication received from various Tax Authorities/ Judicial forums and follow up action thereon;

c. Evaluating the merit of the subject matter under consideration with reference to the grounds presented therein and available independent legal / tax advice ; and

d. Review and analysis of evaluation of the contentions of the Bank through discussions, collection of details of the subject matter under consideration, the likely outcome and consequent potential outflows on those issues.

Information Other than the Standalone Financial Statements and Auditors’ Report thereon

4. The Bank’s Board of Directors is responsible for the other information. The other information comprises the Corporate Governance report (but does not include the Standalone Financial Statements and our auditors’report thereon), which we obtained at the time of issue of this auditors’report, and the Directors’Report including annexures, if any, thereon, which is expected to be made available to us after that date.

Our opinion on the Standalone Financial Statements does not cover the other information and the Basel III Disclosure and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

When we read the Director’s Report, including annexures, if any, thereon, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

5. The Bank’s Board of Directors is responsible with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and circulars and guidelines issued by RBI from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Bank’s financial reporting process.

Auditors’ Responsibility for the Audit of Standalone Financial Statements

6. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material, if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

- Evaluate the overall presentation structure and content of the Standalone Financial Statements, including the disclosures and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the Key Audit Matters. We describe these matters in our auditors’report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

7. We did not audit the financial statements / information of 14,796 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total advances of Rs. 14,00,731.01 crores at 31st March 2019 and total interest income of Rs. 1,06,540.62 crores for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of these branches have been audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.

Our opinion is not modified in respect of above matters.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949; and these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

Subject to the limitations of the audit indicated in paragraph 5 to 7 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required therein, we report that:

a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory;

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

We further report that:

a) In our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

b) the Balance Sheet, the Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us;

c) the reports on the accounts of the branch offices audited by branch auditors of the Bank as per the provisions of the section 29 of the Banking Regulation Act, 1949, and the State Bank of India Act, 1955 have been sent to us and have been properly dealt with by us in preparing this report; and

d) in our opinion, the Balance Sheet and the Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by the RBI.

In terms of our report of even date

FOR J.C. BHALLA & CO. FOR RAO & KUMAR FOR BRAHMAYYA & CO.

Chartered Accountants Chartered Accountants Chartered Accountants

RAJESH SETHI ANIRBAN PAL K. JITENDRA KUMAR

Partner : M. No.085669 Partner : M. No. 214919 Partner : M. No. 201825

Firm Regn. No. 001111N Firm Regn. No. 003089S Firm Regn. No. 000511S

FOR CHATURVEDI &

SHAH LLP FOR S. K. MITTAL & CO. FOR RAY & RAY

Chartered Accountants Chartered Accountants Chartered Accountants

VITESH D. GANDHI M. K. JUNEJA ABHIJIT NEOGI

Partner: M. No.110248 Partner : M. No.013117 Partner : M. No. 061380

Firm Regn. No.

101720W/W100355 Firm Regn. No.001135N Firm Regn. No. 301072E

FOR O.P. TOTLA & CO. FOR N.C. RAJAGOPAL & CO. FOR K. VENKATACHALAM

Chartered Accountants Chartered Accountants AIYER & CO.

Chartered Accountants

S. R. TOTLA V. CHANDRASEKARAN A GOPALAKRISHNAN

Partner : M. No. 071774 Partner: M. No. 024844 Partner : M. No. 018159

Firm Regn. No. 000734C Firm Regn. No. 230448S Firm Regn. No. 004610S

FOR S. K. KAPOOR & CO. FOR KARNAVAT & CO. FOR G. P. AGRAWAL & CO.

Chartered Accountants Chartered Accountants Chartered Accountants

SANJIV KAPOOR SAMEER B. DOSHI AJAY KUMAR AGRAWAL

Partner : M. No. 070487 Partner : M. No. 117987 Partner : M. No. 17643

Firm Regn. No. 000745C Firm Regn. No. 104863W Firm Regn. No. 302082E

FOR DE CHAKRABORTY

& SEN FOR KALANI & CO.

Chartered Accountants Chartered Accountants

D. K. ROY CHOWDHURY BHUPENDER MANTRI Place : Mumbai

Partner : M. No. 053087 Partner: M. No. 108170 Date : 10th May, 2019

Firm Regn. No. 303029E Firm Regn. No. 000722C


Mar 31, 2018

To

The President of India,

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of State Bank of India (“the Bank”) as at March 31 2018, which comprise the Balance Sheet as on that date, and the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these standalone financial statements are the returns of -

i) The Central Offices, 16 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Resolution Group (Central), Central Accounts Offices and 42 branches audited by us;

ii) 14,566 Indian Branches audited by other auditors;

iii) 51 Foreign Branches audited by the local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 9,033 Indian Branches (including other accounting units) which have not been subjected to audit. These unaudited branches account for 3.49 % of advances, 12.56 % of deposits, and 4.62 % of interest income and 12.85 % of interest expenses.

Management''s Responsibility for the Standalone Financial

Statements

2. The Bank''s management is responsible for the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognized accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the standalone financial statements that are free from material misstatement, whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the standalone financial statements and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the activities of the Bank is effective.

Auditors'' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation and fair presentation of the standalone financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the standalone financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

(i) the Balance Sheet, read with the significant accounting policies and the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at March 31, 2018 in conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Emphasis of Matter

7. We draw attention to:

a) Note no 18(9)(b), regarding unamortized balance of INR 2,707.50 crore on account of additional liabilities towards Gratuity; and

b) Note no 18(9)(g), regarding recognition of Deferred Tax Assets of INR 2,461.40 Crore on provision for standard assets.

Our Opinion is not modified in respect of the above stated matters.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third Schedule to the Banking Regulation Act, 1949 and these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

9. Subject to the limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

10. We further report that:

a) The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account and returns.

b) The reports on the accounts of the branch offices audited by branch auditors of the Bank as per the provisions of the Banking Regulation Act, 1949, and the State Bank of India Act, 1955 have been sent to us and have been properly dealt with by us in preparing this report.

c) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the applicable accounting standards.

For VARMA & VARMA

Chartered Accountants

P R PRASANNA VARMA Partner : M. No.025854

Firm Regn. No. 004532 S

For GSA & ASSOCIATES

Chartered Accountants

SUNIL AGGARWAL Partner: M. No.083899

Firm Regn. No. 000257 N

For AMIT RAY & CO.

Chartered Accountants

BASUDEBBANERJEE Partner : M. No.070468

Firm Regn. No. 000483 C

For RAO & KUMAR

Chartered Accountants

K. CH. S. GURU PRASAD Partner : M. No.215652

Firm Regn. No. 003089 S

For CHATURVEDI & SHAH

Chartered Accountants

VITESH D. GANDHI Partner : M. No. 110248

Firm Regn. No. 101720 W

For MANUBHAI & SHAH LLP

Chartered Accountants

HITESH M. POMAL

Partner : M. No.106137

Firm Regn. No.106041W/W100136

For CHATTERJEE & CO.

Chartered Accountants

R N BASU

Partner: M. No. 050430

Firm Regn. No. 302114 E

For S L CHHAJED & CO.

Chartered Accountants

ABHAY CHHAJED Partner : M. No. 079662

Firm Regn. No. 000709 C

For BRAHMAYYA & CO.

Chartered Accountants

K. JITENDRA KUMAR Partner : M. No. 201825

Firm Regn. No. 000511 S

For S K MITTAL & CO.

Chartered Accountants

S. K. MITTAL Partner : M. No. 008506

Firm Regn. No. 001135 N

For M BHASKARA RAO & CO.

Chartered Accountants

M V RAMANA MURTHY Partner : M. No. 206439

Firm Regn. No. 000459 S

For BANSAL & CO LLP

Chartered Accountants

R.C. PANDEY

Partner : M. No. 070811

Firm Regn. No. 001113N/N500079

For MITTAL GUPTA & CO.

Chartered Accountants

AKSHAY KUMAR GUPTA Partner : M. No. 070744

Firm Regn. No. 001874 C

For RAY & RAY

Chartered Accountants

ABHIJIT NEOGI Partner: M. No. 61380

Firm Regn. No. 301072 E

Place : Mumbai

Date : 22nd May, 2018


Mar 31, 2017

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of State Bank of India (“the Bank”) as at March 31 2017, which comprises the Balance Sheet as at March 31, 2017, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these standalone financial statements are the returns of -

i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 9,873 Indian Branches audited by other auditors;

iii) 53 Foreign Branches audited by the local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 8,200 Indian Branches (including other accounting units) which have not been subjected to audit. These unaudited branches account for 3.86 % of advances, 15.50% of deposits, and 4.90 % of interest income and 14.51 % of interest expenses.

Management’s Responsibility for the Standalone Financial Statements

2. The Bank’s management is responsible for the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the standalone financial statements that are free from material misstatement, whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the standalone financial statements and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the activities of the Bank is effective.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank’s preparation and fair presentation of the standalone financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the standalone financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

(i) the Balance Sheet, read with the significant accounting policies and the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at March 31, 2017 in conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

7. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third Schedule to the Banking Regulation Act 1949 and these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

8. Subject to the limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

9. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the applicable accounting standards.

For VARMA & VARMA

Chartered Accountants

CHERIAN K BABY

Partner : M.No.016043

Firm Regn. No. 004532 S

For B. CHHAWCHHARIA & CO.

Chartered Accountants

S. K. CHHAWCHHARIA

Partner: M.No. 008482

Firm Regn. No. 305123 E

For GSA & ASSOCIATES

Chartered Accountants

SUNIL AGGARWAL

Partner : M No.083899

Firm Regn. No. 000257 N

For AMIT RAY & CO.

Chartered Accountants

BASUDEB BANERJEE

Partner : M No.070468

Firm Regn. No. 000483 C

For RAO & KUMAR

Chartered Accountants

K. PARVATHI KUMAR

Partner : M.No.11684

Firm Regn. No. 003089 S

For V. SANKAR AIYAR & CO.

Chartered Accountants

G SANKAR

Partner : M No.046050

Firm Regn. No.109208 W

For MANUBHAI & SHAH LLP

Chartered Accountants

HITESH M. POMAL

Partner: M.No.106137

FirmRegn.No.106041W/W100136

For CHATTERJEE & CO.

Chartered Accountants

R. N. BASU

Partner : M No.050430

Firm Regn. No.302114 E

For S L CHHAJED & CO.

Chartered Accountants

S.N.SHARMA

Partner : M No. 071224

Firm Regn. No.000709 C

For BRAHMAYYA & CO.

Chartered Accountants

N. SRI KRISHNA

Partner : M No. 026575

Firm Regn. No.000511 S

For S. N. MUKHERJI & CO.

Chartered Accountants

SUDIP K. MUKHERJI

Partner : M No.013321

Firm Regn. No. 301079 E

For M. BHASKARA RAO & CO.

Chartered Accountants

M. V. RAMANA MURTHY

Partner : M.No.206439

Firm Regn. No.000459 S

For BANSAL & CO.

Chartered Accountants

SURINDER K. BANSAL

Partner : M.No. 014301

Firm Regn. No. 001113 N

For MITTAL GUPTA & CO.

Chartered Accountants

AKSHAY KUMAR GUPTA

Partner: M.No. 070744

Firm Regn. No. 001874 C

Place : Kolkata

Date : May 19, 2017


Mar 31, 2016

1. We have audited the accompanying financial statements of State Bank
of India ("the Bank") as at March 31, 2016, which comprises the Balance
Sheet as at March 31, 2016, the Profit and Loss Account and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information. Incorporated in
these financial statements are the returns of

i) The Central Offices, 14 Local Head Offices, Global Market Group,
International Business Group, Corporate Accounts Group (Central),
Mid-Corporate Group (Central), Stressed Assets Management Group
(Central) and 42 branches audited by us;

ii) 8,903 Indian Branches audited by other auditors;

iii) 55 Foreign Branches audited by the local auditors.

The branches audited by us and those audited by other auditors have
been selected by the Bank in accordance with the guidelines issued to
the Bank by the Reserve Bank of India. Also incorporated in the Balance
Sheet and the Profit and Loss Account are the returns from 8,714 Indian
Branches (including other accounting units) which have not been
subjected to audit. These unaudited branches account for 4.03% of
advances, 17.81% of deposits, and 4.99% of interest income and 16.08%
of interest expenses.

Management''s Responsibility for the Financial Statements

2. The Bank''s management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash fows of the Bank in accordance
with the requirements of the Reserve Bank of India, the provisions of
the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and
recognized accounting policies and practices, including the Accounting

Standards issued by the Institute of Chartered Accountants of India
(ICAI). This responsibility of the management includes the design,
implementation and maintenance of internal controls and risk management
systems relevant to the preparation of the financial statements that are
free from material misstatement, whether due to fraud or error. In
making those risk assessments, the management has implemented such
internal controls that are relevant to the preparation of the financial
statements and designed procedures that are appropriate in the
circumstances so that the internal control with regard to all the
activities of the Bank is effective.

Auditor''s Responsibility

3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.

4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Bank''s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is suffcient
and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by books of the Bank, and to the best of
our information and according to the explanations given to us:

(i) the Balance Sheet, read with the significant accounting policies and
the notes thereon is a full and fair Balance Sheet containing all the
necessary particulars, is properly drawn up so as to exhibit a true and
fair view of state of affairs of the Bank as at 31st March 2016 in
conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the significant accounting
policies and the notes thereon shows a true balance of profit, in
conformity with accounting principles generally accepted in India, for
the year covered by the account; and

(iii) the Cash Flow Statement gives a true and fair view of the cash
fows for the year ended on that date.

Emphasis of Matter

7. We draw attention to Note 18 of Schedule 18: ''Notes to Accounts''
regarding:

(a) Note No. 18.8 – para 20: non-amortization of Rs.1,131.01 crore on
account of loss on sale of assets to Reconstruction Companies.

(b) Note No. 18.8 – para 21: utilization of Counter Cyclical Buffer of
Rs.1, 149 crore during the year.

Our opinion is not qualifed in respect of the above stated matter.

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and the Profit and Loss Account have been drawn up
in Forms "A" and "B" respectively of the Third Schedule to the Banking
Regulation Act 1949 and these give information as required to be given
by virtue of the provisions of the State Bank of India Act, 1955 and
regulations there under.

9. Subject to the limitations of the audit indicated in paragraphs 1
to 5 above and as required by the State Bank of India Act, 1955, and
subject also to the limitations of disclosure required there in, we
report that:

a) We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purposes of
our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice, have
been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have
been found adequate for the purposes of our audit.

10. In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement comply with the applicable accounting
standards.

For M/s Varma & Varma

Chartered Accountants


Cherian K Baby

Partner, M.No.016043

Firm Regn.No.004532 S

For M/s V. Sankar Aiyar & Co.

Chartered Accountants


Ajay Gupta

Partner, M.No.090104

Firm Regn.No.109208 W


For M/s Manubhai & Shah LLP

Chartered Accountant


Hitesh M Pomal

Partner, M.No.106137

Firm Regn.No.106041W/W100136


For M/s Chatterjee & Co.

Chartered Accountants


S K Chatterjee

Partner, M.No.003124

Firm Regn.No.302114 E

For M/s S L Chhajed & Co.

Chartered Accountants


S N Sharma

Partner, M.No.071224

Firm Regn.No.000709 C


For M/s Mehra Goel & Co.

Chartered Accountants


R K Mehra

Partner, M.No.006102

Firm Regn.No.000517 N

For M/s S. N. Mukherji & Co.

Chartered Accountants


Sudip Mukherji

Partner, M.No.013321

Firm Regn.No.301079 E


For M/s M. Bhaskara Rao & Co.

Chartered Accountants


M V Ramana Murthy

Partner, M.No.206439

Firm Regn.No.000459 S


For M/s Bansal & Co.

Chartered Accountants


D S Rawat

Partner, M.No.083030

Firm Regn.No.001113 N


For M/s Mittal Gupta & Co.

Chartered Accountants


Akshay Kumar Gupta

Partner, M.No.070744

Firm Regn.No.001874 C


For M/s S R R K Sharma Associates

Chartered Accountants


S R R K Sharma

Partner, M.No.18088

Firm Regn.No.003790 S


For M/s B. Chhawchharia & Co.

Chartered Accountants


Kshitiz Chhawchharia

Partner, M.No.061087

Firm Regn. No. 305123 E


For M/s GSA & Associates

Chartered Accountants


Sunil Aggarwal

Partner, M.No.083899

Firm Regn.No.000257 N


For M/s Amit Ray & Co.

Chartered Accountants


Basudeb Banerjee

Partner, M.No.070468

Firm Regn.No.000483 C\

Place : Kolkata

Date : 27th May, 2016.


Mar 31, 2015

1. We have audited the accompanying financial statements of State Bank of India ("the Bank") as at 31st March 2015, which comprises the Balance Sheet as at March 31,2015, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of

i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 8928 Indian Branches audited by other auditors;

iii) 52 Foreign Branches audited by the local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from 8144 Indian Branches (including other accounting units) which have not been subjected to audit. These unaudited branches account for 4.19% of advances, 17.54% of deposits, 5.30% of interest income and 16.26% of interest expenses.

MANAGEMENT''S RESPONSIBILITY FOR THE

FINANCIAL STATEMENTS

2. The Bank''s management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955

and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the financial statements and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the activities of the Bank is effective.

AUDITOR''S RESPONSIBILITY

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

6. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

(i) the Balance Sheet, read with the significant accounting policies and the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2015 in conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

EMPHASIS OF MATTER

7. We draw attention to Schedule 18: "Notes to Accounts" regarding:

i) Notes 18.7 - para [a]: change in method/rate of depreciation on Fixed Assets resulting in an increase in profit by Rs.420.76 crores.

ii) Notes 18.7 - para [b(i)(1c)]: change in valuation of Plan Assets of long-term benefits from Book Value to Fair Value, resulting in increase in the value of Plan Assets by Rs. 2182.87 crores.

iii) Notes 18.8 - para 21: non-amortization of Rs. 2179.42 crores on account of loss on sale of assets to Reconstruction Companies.

iv) Notes 18.8 - para 22: utilization of Counter Cyclical Buffer of Rs.382 crores during the year. Our opinion is not qualified in respect of the above stated matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act 1949, and that these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

9. Subject to the limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

10. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the applicable acco unting standards.

For S. Venkatram & Co. For V.P. Aditya & Co. For S. N. Nanda & Co. Chartered Accountants Chartered Accountants Chartered Accountants

G. Narayanaswamy Surendra Kakkar Gaurav Nanda Partner : M.No.002161 Partner: M.No.071912 Partner: M.No.500417 Firm Regn.No.004656S Firm Regn.No.000542C Firm Regn.No.000685N

For S. Jaykishan For Dhamija Sukhija & Co. For Sriramamurthy & Co. Chartered Accountants Chartered Accountants Chartered Accountants

Sunirmal Chatterjee Prabhat Sukhija J. Lalitha Partner: M.No.017361 Partner: M.No.514761 Partner: M.No.201855 Firm Regn.No.309005E FirmRegn.No.000369N Firm Regn.No.003032S

For Prakash & Santosh For T R Chadha & Co. For K. B. Sharma & Co. Chartered Accountants Chartered Accountants Chartered Accountants

G K Mishra Vikas Kumar Hemant Sharma Partner: M.No.074586 Partner: M.No.075363 Partner: M.No.503080 Firm Regn.No.000454C FirmRegn.No.006711N Firm Regn.No.002318N

For Mehra Goel & Co. For SRRK Sharma Associates For B. Chhawchharia & Co. Chartered Accountants Chartered Accountants Chartered Accountants

R K Mehra G S Krishnamurthy Kshitiz Chhawchharia Partner: M.No.006102 Partner: M.No.013841 Partner: M.No.061087 Firm Regn.No.000517N Firm Regn.No.003790S Firm Regn.305123E

For S. N. Mukherji & Co. For V. Sankar Aiyar & Co. Chartered Accountants Chartered Accountants

Sudip Kumar Mukherji S. Venkatraman Partner, M.No.013321 Partner: M.No.034319 Firm Regn.No.301079E Firm Regn.No.109208W

Place: Kolkata Date: 22 May 2015


Mar 31, 2014

1. We have audited the accompanying financial statements of State Bank of India ("the Bank") as at 31st March, 2014, which comprises the Balance Sheet as at 31st March, 2014, the Profit and loss Account and the Cash flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of

i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 8252 Indian Branches audited by other auditors;

iii) 54 foreign Branches audited by the local auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit and loss Account are the returns from 8355 Indian Branches and other accounting units which have not been subjected to audit. These unaudited branches account for 4.66% of advances, 18.75% of deposits, 5.73% of interest income and 18.28% of interest expenses.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2. The Bank''s management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility of the management includes the design, implementation and maintenance of internal controls and risk management systems relevant to the preparation of the financial statements that are free from material misstatement,

whether due to fraud or error. In making those risk assessments, the management has implemented such internal controls that are relevant to the preparation of the financial statements and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the activities of the Bank is effective.

AUDITOR''S RESPONSIBILITY

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank''s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

6. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

(i) the Balance Sheet, read with the significant accounting policies and the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2014 in conformity with accounting principles generally accepted in India;

(ii) the Profit and loss Account, read with the significant accounting policies and the notes

thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

(iii) the Cash flow Statement gives a true and fair view of the cash flows for the year ended on that date.

EMPHASIS OF MATTER

7. We draw attention to Notes 18.8 of Schedule 18: ''Notes to Accounts regarding:

(a) para 16: regarding utilisation of specific provisions of Rs.2,056.26 crores made in earlier years;

(b) para 18: utilization of counter cyclical provisioning buffer amounting to Rs.750 crores towards specific provision for Non-Performing Assets;

(c) para 19: charge of Rs.1,525.13 crores to Revenue and Other Reserves for creation of Deferred Tax Liability on Special Reserve created u/s 36(1)(viii) of Income Tax Act, as per RBI guidelines.

Our opinion is not qualified in respect of the above stated matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

8. The Balance Sheet and the Profit and loss Account have been drawn up in forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act 1949, these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955 and regulations there under.

9. Subject to limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required there in, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

10. In our opinion, the Balance Sheet, the Profit and loss Account and the Cash flow Statement comply with the applicable accounting standards.

For S Venkatram & Co. for Singhi & Co. for SCM Associates Chartered Accountants Chartered Accountants Chartered Accountants

G Narayanaswamy Rajiv Singhi P K Bal

Partner : M.No. 002161 Partner : M.No.053518 Partner : M.No. 055147

firm Regn. No.004656 S firm Regn. No.302049 E firm Regn.No. 314173 E

for S N Nanda & Co. for Sriramamurthy & Co. for T r Chadha & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

S N Nanda D Prasanna kumar Vikas kumar

Partner : M.No. 005909 Partner : M.No.023999 Partner : M.No. 075363

firm Regn. No.000685 N firm Regn. No.003032 S firm Regn. No.006711 N

for Prakash & Santosh for Dhamija Sukhija & Co. for K B Sharma & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

Arun kumar K M Sukhija Hemant Sharma

Partner : M No.087378 Partner: M.No.016942 Partner : M No.503080

firm Regn. No. 000454 C firm Regn. No.000369 N firm Regn.No. 002318 N

for Add & Associates for V P Aditya & Co. for S Jaykishan

Chartered Accountants Chartered Accountants Chartered Accountants

S Dey Bandopadhyay V P Aditya Sunirmal Chatterjee

Partner: M.No. 064055 Partner : M No.006387 Partner : M.No. 017361

firm Regn. No.308064 E firm Regn. No.000542 C firm Regn. No.309005 E

for mehra goel & Co. for SRRK Sharma Associates

Chartered Accountants Chartered Accountants

R K Mehra S R R k Sharma

Partner: M.No.006102 Partner : M No.016304

firm Regn. No.000369 N firm Regn. No. 003790 S

Place : Kolkata

Date : 23rd May 2014


Mar 31, 2013

1. We have audited the accompanying financial statements of State Bank of India as at 31st March 2013, which comprises the Balance Sheet as at March 31, 2013, the Profit and Loss Account and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are the returns of

i) The Central Office, 14 Local Head Offices, Global Market Group, International Business Group, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and 42 branches audited by us;

ii) 7480 Indian Branches audited by other auditors;

iii) 53 Foreign Branches audited by the local auditors; and

The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by Reserve Bank of India.

Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 8170 Indian Branches and other accounting units which have not been subjected to audit. These unaudited branches account for 5.38% of advances, 19.47% of deposits, 6.25% of interest income and 16.91% of interest expenses.

Managements Responsibility for the Financial Statements

2. The management is responsible for the preparation of these financial statements in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditors Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to error. In making those risk assessments, the auditor considers internal control relevant to the Banks preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

(i) the Balance Sheet, read with significant accounting policies and notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2013 in conformity with accounting principles generally accepted in India;

(ii) the Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Matter of Emphasis

7. Without qualifying our opinion, we draw attention to :

a) Notes 18.8 - para 13 of Schedule 18 : Notes to Accounts regarding deferment of gratuity liability of the bank to the extent of Rs. 200 crore pursuant to the exemption granted by the Reserve Bank of India to the public sector banks from application of the provisions of Accounting Standard (AS) 15, Employee Benefits vide its circular no.DBOD.BP.BC/80/21.04.01.018/2010-11 dated February 9, 2011.

b) Notes 18.8 - para 16 of Schedule 18 : During the year, the Bank has made specific provisions of Rs. 706.26 crore for certain Non-performing domestic advances to provide for estimated actual loss in collectible amounts.

8. The Balance Sheet and the Profit and Loss Account have been drawn up in Form "A" and "B" respectively of the Third Schedule to the Banking Regulation Act 1949, these give information as required to be given by virtue of the provisions of the State bank of India Act, 1955 and regulations there under.

9. Subject to limitations of the audit indicated in paragraphs 1 to 5 above and as required by the State bank of India Act, 1955, and subject also to the limitations of disclosure required there in, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank which have come to our notice have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

10. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with applicable accounting standards.

For Todi Tulsyan & Co. For Singhi & Co. For SCM Associates

Chartered Accountants Chartered Accountants Chartered Accountants

Sushil Kumar Tulsyan Rajiv Singhi S K Jhunjhunwala

Partner:M.No. 075899 Partner:M.No. 053518 Partner:M.No. 055639

Firm Regn. No. 002180 C Firm Regn. No.302049 E Firm Regn. No. 314173 E

For S Venkatram & Co. For Sriramamurthy & Co. For T R Chadha & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

G Narayanaswamy M Poorna Chander Rao Vikas Kumar

Partner:M.No. 002161 Partner:M.No.027113 Partner:M.No. 075363

Firm Regn. No.004656 S Firm Regn. No.003032 S Firm Regn. No.006711 N

For S N Nanda & Co. For V Soundararajan & Co. For K B Sharma & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

S N Nanda V S Sukumar Munish Jain

Partner:M.No. 005909 Partner:M.No. 018203 Partner:M No.094750

Firm Regn. No.000685 N Firm Regn. No.003943 S Firm Regn. No. 002318 N

For ADD & Associates For Dhamija Sukhija & Co. For Prakash & Santosh

Chartered Accountants Chartered Accountants Chartered Accountants

Nimai Kumar Das Reena Sukhija Santosh Kumar Gupta

Partner:M.No. 051309 Partner: M.No.081977 Partner: M No.016304

Firm Regn. No.308064 E Firm Regn. No.000369 N Firm Regn. No. 000454 C

For V P Aditya & Co. For S Jaykishan

Chartered Accountants Chartered Accountants

V P Aditya Sunirmal Chatterjee

Partner:M No.006387 Partner:M.No. 017361

Firm Regn. No.000542 C Firm Regn. No.309005 E

Place : Kolkata

Date : 23rd May 2013


Mar 31, 2012

1. We, the undersigned Auditors of State Bank of India, appointed under Section 41 (1) of the State Bank of India Act, 1955, do hereby report to the Central Government upon the Balance Sheet, Profit and Loss Account and the Cash Flow Statement of the Bank.

2. We have audited the accompanying financial statements of State Bank of India as at 31st March 2012, which comprise the Balance Sheet as at March 31, 2012, Profit & Loss Account and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in the said financial statements are the returns of:

i) The Central Office, fourteen Local Head Offices, Global Markets Group, International Business Group, Corporate Accounts Group (Central), Mid- Corporate Group (Central), Stressed Assets Management Group (Central) and forty two branches audited by us;

ii) 11060 Indian Branches audited by branch auditors; and

iii) 52 Foreign Branches audited by the local auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by Reserve Bank of India.

Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 3811 Indian branches and other accounting units, which have not been subjected to audit. These unaudited branches account for 1.18% of advances, 4.56% of deposits, 1.06% of interest income and 4.89% of interest expenses.

3. The management is responsible for the preparation of these financial statements in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognized accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

4. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Banks preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

7. Without qualifying our opinion, we draw attention to:

a) Note 18 of Schedule 18: Notes to Accounts regarding the additional provision of Rs1,350 crores in respect of certain non performing domestic advances.

b) Note 13 of Schedule 18: Notes to Accounts regarding deferment of gratuity liability of the bank to the extent of Rs300 crores in accordance with RBI circular no.DBOD.BP.BC.80/21.04.018/ 2010-11 dated February 9, 2011 and the exemption granted by the Reserve Bank of India to the Bank from applicability of provisions of accounting Standard 15: Employee Benefits.

8. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

a) the Balance Sheet, read with the significant accounting policies and notes thereon is a full and fair balance sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2012 in conformity with accounting principles generally accepted in India;

b) the Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

9. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act, 1949, these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955, and Regulations there under.

10. Subject to limitations of the audit indicated in paragraphs 2 to 5 above and as required by the SBI Act, 1955, and subject also to the limitations of disclosure required there in, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

11. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with applicable accounting standards.



For Kalyaniwalla & Mistry For Dagliya & Co.

Chartered Accountants Chartered Accountants

Viraf Mehta P. Manohara Gupta

Partner:M.No. 32083 Partner: M.No. 016444

Firm Regn. No. 104607 W Firm Regn. No. 000671 S

For B. M. Chatrath & Co. For M. Verma & Associates

Chartered Accountants Chartered Accountants

S. Krishnan Madan Verma

Partner :M.No. 051626 Partner :M.No. 080939

Firm Regn. No. 301011 E Firm Regn. No. 501433 C

For K.K. Soni & Co. For Krishnamoorthy & Krishnamoorthy

Chartered Accountants Chartered Accountants

K. K. Soni C. R. Rema

Partner :M.No. 007737 Partner :M.No. 029182

Firm Regn. No. 000947 N Firm Regn. No. 001488 S

For Essveeyar For Todi Tulsyan & Co.

Chartered Accountants Chartered Accountants

B. Shanmuganathan

Partner : M.No. 027882 Sushil Kumar Tulsyan

Partner : M.No. 075899

Firm Regn. No. 000808S Firm Regn. No.002180 C For Venugopal & Chenoy For Singhi & Co.

Chartered Accountants Chartered Accountants

D.V.Jankinath Rajiv Singhi

Partner: M.No. 029505 Partner : M.No. 053518

Firm Regn. No. 004671 S Firm Regn. No. 302049 E

For K G. Somani & Co For SCM Associates

Chartered Accountants Chartered Accountants

Anju Somani P K Bal

Partner: M.No.511267 Partner: M.No. 055147

Firm Regn. No. 006591 N Firm Regn. No. 314173 E

For K.C.Mehta & Co For SBA & Company

Chartered Accountants Chartered Accountants

Chirag Bakshi Ashok Kumar Jain

Partner : M.No. 047164 Partner . M.No. 072262

Firm Regn. No. 106237 W Firm Regn. No. 004651 C

Kolkata

18th May, 2012


Mar 31, 2011

1. We, the undersigned Auditors of State Bank of India, appointed under Section 41 (1) of the State Bank of India Act, 1955, do hereby report to the Central Government upon the Balance Sheet, Profit and Loss Account and the Cash Flow Statement of the Bank.

2. We have audited the attached Balance Sheet of State Bank of India as at 31st March 2011, the Profit & Loss Account and the Cash Flow Statement of the Bank for the year ended on that date annexed thereto. Incorporated in the said financial statements are the accounts of:

i) The Central Office, fourteen Local Head Offices, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and forty two branches audited by us;

ii) 11374 Indian Branches audited by other auditors;

iii) 47 Foreign Branches audited by the local auditors; and

iv) 2817 other Indian Branches and other accounting units, the unaudited returns of which are certified by the Branch Managers. These unaudited branches account for 0.67% of advances, 2.60% of deposits, 0.86% of interest income and 4.16% of interest expenses.

3. The management is responsible for the preparation of these financial statements in accordance with the requirements of the Reserve Bank of India, the provisions of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognized accounting policies and practices, including the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from material misstatements, whether due to fraud or error.

4. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depends on the auditors judgement, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Banks preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

7. Without qualifying our opinion we draw your attention to Note 18.8 of schedule 18 Notes to Accounts to the financial statements regarding

a) deferment of gratuity liability of the bank to the extent of Rs. 400 crores in accordance with RBI circular no. DBOD.BP.BC.80 / 21.04.018/2010-11 dated February 9, 2011 and the exemption granted by the Reserve Bank of India to the Bank from applicability of provisions of Accounting Standard (AS) 15, Employee Benefits, and

b) charge of Rs. 7,927.41 crores to Reserves on account of the additional pension cost in respect of earlier years due to wage revision in accordance with the dispensation granted by Reserve Bank of India to the Bank vide their letter number DBOD/BP/No./16165/ 21.04.018/2010-11 dated April 18, 2011 and the exemption granted by the Reserve Bank of India to the Bank from applicability of provisions of Accounting Standard (AS) 15, Employee Benefits.

8. In our opinion, as shown by books of the Bank, and to the best of our information and according to the explanations given to us:

a) the Balance Sheet, read with the significant accounting policies and notes thereon is a full and fair balance sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2011 in conformity with accounting principles generally accepted in India;

b) the Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year covered by the account; and

c) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

9. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act, 1949, these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955, and Regulations there under.

10. Subject to limitations of the audit indicated in paragraph 2 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required therein, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.

c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

11. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with applicable accounting standards.

For Kalyaniwalla & Mistry For Dagliya & Co. Chartered Accountant Chartered Accountant

Viraf Mehta P. Manohara Gupta Partner M.No. 32083 Partner M.No. 016444 Firm Regn. No. 104607 W Firm Regn. No. 000671 S

For B. M. Chatrath & Co. For M. Verma & Associates Chartered Accountants Chartered Accountants

A. Chatrath Mohender Gandhi Partner M.No. 052975 Partner M.No. 088396 Firm Regn. No. 301011 E Firm Regn. No. 501433 C

For K.K. Soni & Co. For Krishnamoorthy & Krishnamoorthy Chartered Accountants Chartered Accountants

K. K. Soni R. Venugopal Partner M.No. 7737 Partner M.No. 202632 Firm Regn. No. 000947 N Firm Regn. No. 001488 S

For Essveeyar, For Todi Tulsyan & Co. Chartered Accountants Chartered Accountants

R. Vijayaraghavan Sushil Kumar Tulsyan Partner : M.No. 022442 Partner : M.No. 075899 Firm Regn. No.000808 S Firm Regn. No. 002180 C

For Venugopal & Chenoy For R. K. J. K. Khanna & Co. Chartered Accountants Chartered Accountants D. V. Jankinath Vipin Bali Partner : M.No. 029505 Partner :M.No. 083436 Firm Regn. No. 004671 S Firm Regn. No. 000033 N

For K. G. Somani & Co. For Raj Bordia & Co. Chartered Accountants Chartered Accountants

Vinod Somani R. S. Bordia Partner : M.No. 085277 Partner : M.No. 081200 Firm Regn. No. 006591 N Firm Regn. No. 003293 C

For K. C. Mehta & Co. For SBA & Company Chartered Accountants Chartered Accountants

Milin Mehta B. D. Bhatter Partner : M.No. 038665 Partner : M.No. 071499 Firm Regn. No. 106237 W Firm Regn. No. 004651 C

Kolkata

17th May, 2011


Mar 31, 2010

1. We, the undersigned Auditors of State Bank of India, appointed under Section 41(1) of the State Bank of India Act, 1955, do hereby report to the Central Government upon the Balance Sheet, Profit & Loss Account and the Cash Flow Statement of the Bank.

2. We have audited the attached Balance Sheet of State Bank of India as at 31st March 2010, the Profit & Loss Account and the Cash Flow Statement of the Bank for the year ended on that date annexed thereto. Incorporated in the said financial statements are the accounts of:

(i) The Central Office, fourteen Local Head Offices, Corporate Accounts Group (Central), Mid-Corporate Group (Central), Stressed Assets Management Group (Central) and forty two branches audited by us;

(ii) 9827 Indian Branches audited by other auditors;

(iii) 44 Foreign Branches audited by the local auditors; and

(iv) 2632 other Indian Branches, the unaudited returns of which are certified by the Branch Managers. These unaudited branches account for 0.89% of advances, 3.78% of deposits, 0.96% of interest income and 4.33% of interest expenses.

These financial statements are the responsibility of the Banks Management. Our responsibility is to express an opinion on these financial statements based on our audit.

3. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

4. The Balance Sheet and the Profit & Loss Account have been drawn up in Forms A and B respectively of the Third Schedule to the Banking Regulation Act, 1949 and these give information as required to be given by virtue of the provisions of the State Bank of India Act, 1955, and Regulations there under.

5. We report, read with paragraph 2 above:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory.

(b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

(c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.

6. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting standards.

7. In our opinion and to the best of our information and according to the explanations given to us and as shown by the books of the Bank;

(i) the Balance Sheet, read with the Principal Accounting Policies and the Notes to Accounts, is a full and fair Balance Sheet containing all the necessary particulars and is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31* March 2010;

(ii) the Profit and Loss Account, read with the Principal Accounting Policies and the Notes to Accounts, shows a true balance of Profit for the year ended on that date; and

(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date, and are in conformity with the Accounting Principles generally accepted in India.

STATUTORY CENTRAL AUDITORS

For Essveeyar,

Chartered Accountants

P. Manohara Gupta

M.No. 016444

Firm Regn. No.000671 S

For K. C. Mehta & Co.,

Chartered Accountants

Milin Mehta

Partner : M.No. 038665

Firm Regn. No.106237 W



For Kalyaniwalla & Mistry,

Chartered Accountants



Vinayak M. Padwal

Partner : M.No. 049639

Firm Regn. No.104607 W

For M. Verma & Associates, Chartered Accountants

Madan Verma

Partner : M No. 080939 Firm Regn. No. 501433 C

For Krishnamoortny & Krishnamoorthy, Chartered Accountants



C. R. Rema Partner: M.No. 029182

Firm Regn. No. 001488 S

Kolkata

14th May, 2010

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