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Unaudited Financial Results for nine months ended 31^st December 2008

** Not Annualised
** Not exceeding 10% of total expenditure excluding Interest Expenditure

Notes on Accounts forming part of Reviewed Un-audited Financial Results For Nine Months Ended 31st December, 2008

1. These unaudited financial results for the nine months period ended 31st  December, 2008 have been compiled as per Clause 41 of the listing agreement.

2. The working results for the nine months period ended 31st December, 2008 have been arrived at after considering provisions for Non-performing Assets, Standard Assets and Investment Depreciation on the basis of prudential norms issued by Reserve Bank of India. Income Tax, Deferred tax, Fringe Benefit Tax and other usual and necessary provisions have been made on estimated and proportionate basis and are subject to adjustment at the year-end.

3. The Bank is following the same Accounting Policies in preparation of these financial results as were followed in the annual financial statements for the year ended 31st March, 2008.

4. An amount of Rs.4.60 crores has been charged to Profit & Loss Account during the nine months period ended 31st December, 2008, by charging quarterly, one twentieth of the total expenditure relating to Follow-on-Public Issue made by the Bank during April, 2005. 

5. The Bank has made an adhoc provision of Rs. 45 crores during this quarter towards wage revision in order to cover any liability that may arise in the view of on-going negotiation between the Bank employee union & Indian Banking Association.

6. The reconciliation of Nostro / Inter-Branch Reconciliation and Balancing relating to Deposits, Advances and Sundry Creditors are in progress. In view of substantial progress made in this area, management is of the opinion that the impact of reconciliations, if any, on the accounts of the bank will not be material.
   Further, in terms of RBI’s circular, segregation of debit and credit entries in inter branch account pertaining to the period upto 30.06.2008 and remaining outstanding as on 31.12.2008 have resulted in net credit, hence no provision is required.

7. In terms of Agricultural Debt Waiver and Debt Relief Scheme 2008, framed by the Government of India, the Bank has received Rs. 426.73 crores from Reserve Bank of India on account of loans to small and marginal farmers eligible for debt waiver amounting to Rs. 1040.80 crores.

8. The figures of previous period have been regrouped and reclassified wherever necessary in order to make them comparable.

9. The above results have been approved by the Board of Directors in the meeting held on 19th January, 2009.

10. Status of  Investor’s Complaints:
    As on 1st October 2008, the Bank had no investor’s complaints pending. During the quarter, the Bank has received 361 complaints which have been suitably resolved and no complaints were pending as on 31st  December, 2008.

REVIEW REPORT ON THE FINANCIAL RESULTS OF ALLAHABAD BANK
FOR NINE MONTHS ENDED DECEMBER 31, 2008

1. We have reviewed the accompanying statement of unaudited financial results of Allahabad Bank for nine months ended 31st December, 2008. This statement is the responsibility of the Bank’s Management and has been approved by the Board of Directors in the meeting held on January 19, 2009. Our responsibility is to issue report on these financial statements based on our review.

2. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2400, Engagements to Review Financial Statements issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of Banks personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

3. In the conduct of our Review we have reviewed 20 branches and relied on the review reports in respect of non-performing assets received from concurrent auditors of 25 branches. These review reports cover 59.31 percent of the advances portfolio of the bank. Apart from these review reports, in the conduct of our review, we have also relied upon various returns received from the branches of the bank.

4. Attention is drawn to Note No.6 of “Notes on Accounts” in respect of pending reconciliation of NOSTRO / Inter Branch and other control accounts.

5. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreement including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition , asset classification, provisioning and other related matters.

SEGMENT-WISE RESULTS, ASSETS AND LIABILITIES
FOR THE QUARTER & NINE MONTHS ENDED 31-12-2008

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