PRESS RELEASES 2007

Performance Highlights for the Half Year Ended 30th September 2007

15^th October, 2007

Ladies and Gentlemen,
Good afternoon and a very warm welcome to the Press Meet.

I am pleased to inform all of you that the Bank has achieved good performance, in terms of its Financial Results for the half-year ended September 2007. Let me share the business achievements of the Bank for the half-year ended September 2007 in the first place followed by the major initiatives taken by the Bank.

The Major Thrust areas for the Bank are:

• To improve Return on Assets

• To improve Shareholders value

• To effect recovery in Non Performing Loans

• To improve Net Interest Margin

The highlights of the Financial results for H1 of 2007-08 as compared to H1 of 2006-07 are as under:

As at the end of September, 2007 our Bank has achieved a total business level of Rs. 1,17,994 crore as against Rs. 98,272 crore as on 30^th September 2006 recording a year-on-year growth of 20.07%.

Total Deposits of the Bank increased from Rs. 57,508 crore to Rs. 70,292 crore registering a growth of 22.23% year-on-year.

Advances increased from Rs. 40,764 crore as on 30.09.2006 to Rs.47,702 crore as on 30.09.2007 showing a growth of 17.02%.

The Operating Profit of the Bank for the half year ended September 2007 improved by 7.25% to Rs. 429 crore from Rs. 400 crore in the corresponding previous period.

Net profit of the Bank for the half year ended September 2007 rose by 50.05% to Rs. 243.40 crore from Rs.162.21 crore for the corresponding period of the last year.

The Return on Equity stands at 20.03 as compared to 15.01 in September 2006.

Total income recorded a year-on-year growth of 26.37% during the half year ended September 2007 in comparison to half year ended September 2006 and grew to Rs.3402 crore from Rs. 2692 crore.

The Bank’s interest income posted a Y-O-Y growth of 24.02% to Rs.3134 crore during the half-year ended September, 2007 from 2527 crore for the half-year ended September, 2006. Interest income from advances registered an increase of Rs. 607 crore with a growth of 36.93% during the same period.

Non Interest Income at Rs.268 crores, recorded a growth rate of 62.42%.

The Gross NPAs and Net NPAs stood at Rs. 1,682 crore and Rs. 1065 crore as at the end of September 2007 respectively.

NPA Recovery was higher at the end of September 2007 at Rs. 261 crore in comparison to Rs.204 crore as at the end of September 2006. Recovery in written-off accounts has showed a higher performance at Rs.39.83 crore as of September 2007 in comparison to Rs.33.80 crore as of September 2006.

The Capital Adequacy Ratio at 11.50% is well above the minimum required level of 9%.

The Business Per Employee of the Bank improved to Rs. 4.91 crore as at the end of September 2007 from Rs.3.93 crore as at the end of September, 2006.

The Earning Per Share improved to Rs.6.09 as at the end of September, 2007 from Rs.4.05 as at the end of September, 2006.

Book Value per Share improved to Rs.30.41 as at the end of September 2007 as compared to Rs.23.09 at the end of September 2006.

• Many steps initiated for increasing recovery in NPA accounts and close monitoring of borrowal accounts in order to detect early signs of slippage.

• Introduction of Performance-Based Cash Incentive Scheme for staff for business development.

• Shifting of Treasury Operations to Mumbai.

• Identification of 111 potential branches for increasing lending to Agriculture.

• New Agriculture Lending Scheme – "UCO Samagra Kisan Samriddhi Yojna" launched.

• 5 villages identified in the country for development as Model Village within a period of 3 years.

• Payment of Utility Bills of 38 Companies through e-banking implemented at 8 centres.

• Collection of Central Excise and Service Tax (EASIEST) implemented through e-banking.

• 51% business covered under CBS – Plans to cover 75% business by March 2008.

• Capital Restructuring proposal taken up with the Government for enhancing shareholders value.

• Plans to add 80 branches during 2007-08.

• Plans to add 76 new off site ATMs.

• Plans to provide SMS Banking and On-line Share Trading through Internet Banking.

• Plans to provide special facilities at certain branches for senior citizens.

• Plans to introduce Deposit Scheme exclusively for women to be marketed by women.

• FC and MC branches to function as Asset Processing centers for other surrounding branches.

• CASA mobilization campaign launched w.e.f 10^th September for a period of 3 months.

• 100% financial inclusion in Himachal Pradesh - 1^st State in India.

• 100% financial inclusion in Hoogly District - our Lead District, 1^st District in the State.

• Asian Currency Unit inaugurated at Singapore

• Exporters’ Meet planned at various centers in Third Quarter

• Credit counseling centers opened at Balasore in Orissa and at Shimla in H.P.

• Entrepreneur Development Centre opened at Howrah and at Puri for imparting Training to Entrepreneurs

• MIS requirement for Basel II is in the process of being implemented.