AUDITORS REPORT TO STATE BANK OF INDIA

1.

We, the undersigned Auditors of State Bank of Hyderabad, appointed under

Section 41(1) of the State Bank of India (Subsidiary Banks) Act, 1959, do hereby
report on the Balance Sheet as at 31st March, 2009 and the Profit & Loss
Account and Cash Flow statement of the Bank for the year ended on that date.

2.

We have audited the attached Balance Sheet of the State Bank of Hyderabad as
at 31st March, 2009 and also the Profit & Loss Account and Cash Flow
statement of the Bank for the year ended on that date annexed thereto in which
are incorporated the returns of 20 branches audited by us, 935 branches audited
by other auditors and unaudited returns in respect of 76 branches as certified by
the Management. Such unaudited branches account for 0.51% of advances,
1.00% of deposits, 0.17% of interest income and 0.42% of interest expenses.
The branches audited by us and by other auditors have been selected by the
Bank in accordance with the guidelines issued by the Reserve Bank of India.
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. 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.

3.

The Balance Sheet and Profit & Loss Account have been drawn up in Form `A'
and `B' respectively of the Third Schedule to the Banking Regulation Act, 1949
and they give information as required to be given in accordance with the
provisions of State Bank of India (Subsidiary Banks) Act, 1959 and Regulations
framed there under.
4. Subject to the limitations of the audit indicated in paragraph 2 above and as
required by the Banking Companies (Acquisition and Transfer of Undertaking)
Act, 1970 and also subject to the limitations of disclosures required therein and
further subject to Note No 10 of the Notes on Accounts in Schedule-18 as
regards the unascertained effect on accounts of outstanding items under
reconciliation;
a)

in our opinion and to the best of our information and 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 Notes
thereon is a full and fair Balance Sheet containing all the particulars and
is properly drawn up so as to exhibit a true and fair view of the affairs of
the Bank as at 31st March, 2009,

(ii)

the Profit and Loss Account read with the Principal Accounting Policies
and Notes thereon shows a true balance of profit for the year ended on
that date,

(iii)

the Cash Flow Statement read with the Principal Accounting Policies and
Notes thereon gives a true and fair view of the Cash Flows for the year
ended on that date, and

b)

where we have called for any explanation or information, such explanation and
information have been given to us and have been found satisfactory.

c)

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

d)

the returns received from the offices and branches of the Bank have been found
adequate for the purpose of our audit.

for KapoorTandon & Co.,

Rajagopalan,
Chartered Accountants

for Dinesh Mehta & Co.,

for

Sreedhar

Chartered Accountants

Chartered Accountants

(Rajesh Parasramka)
Partner
Mem No 074192

(Hiren Mehta)
Partner
Mem No 090772

(S. Subramaniam)
Partner
Mem No 025433

Suresh

for P G Joshi & Co.,

for Chandra Gupta & Associates for K C Khanna & Co.
Chartered Accountants
Chartered Accountants
Chartered Accountants

(Ashutosh P. Joshi)
Partner
Mem No 038193

(S. C. Gupta)
Partner
Mem No 013465

(K. Balasubramanian)
Partner
Mem No 020082

Place : MUMBAI
Date : 27.04.2009

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