• The financial results for the quarter ended 30th June 2008, have been arrived at on the same Accounting Policies as those followed in the previous year and after considering provisions for Bonus, gratuity, pension, leave encashment and other defined employee benefits as per AS 15(Revised), Income Tax, Deferred Tax, Wealth Tax, Service Tax, Depreciation, Fringe Benefit Tax etc. on an estimated basis and provision for NPA, Standard Assets and Investments as per RBI norms.

• The Bank holds a floating provision of Rs.11934 lacs as on 30th June 2008 over and above the amount required as per RBI guidelines on Income Recognition, Asset Classification and Provisioning on advances.

• 1. The Bank has made a provision for estimated liability in respect of wage revision amounting to Rs. 11.74 Crores for the quarter ended 30.06.2008, calculated on the same basis, as for the year ended 31.03.2008.

• The Bank has now taken into consideration the Deferred Tax Asset amounting to Rs. 6.34 Crores on the amount of provision for estimated liability in respect of wage revision amounting to Rs. 18.64 crores for the year ended 31.03.2008 and accordingly, provision for Income Tax made for the earlier years has been reversed to that extent.

• The reconciliation of various inter-branches, inter-bank and other accounts, including National and Local Clearing account, NOSTRO account, Branch System Suspense account, FOREX Clearing General account and IBIT account is an ongoing process and are under progress. The impact of the above, if any, on the financial results for the quarter ended 30th June 2008, in the opinion of the Management, is not material.

• The Capital Adequacy Ratio has been computed based on the figures furnished in returns of 20 branches reviewed by Statutory Central Auditors, 25 branches reviewed by Concurrent Auditors and remaining 610 un-reviewed branches. In some of the Branches there was mis-classification of data in buckets of BASEL-II statements. However, their impact on CRAR in BASEL-II is not material.

• Provision for Taxes includes adjustment for deferred tax in accordance with AS-22 (Accounting for taxes on Income) issued by the Institute of Chartered Accountants of India.

• Number of Investor Complaints received and disposed off during the quarter ended 30th June 2008.
  
  (i) Pending at the beginning of the quarter Nil
  (ii) Received during the quarter 27
  (iii) Disposed off during the quarter 27
  (iv) Lying unresolved at the end of the quarter Nil
  

• The figures of previous quarter have been re-grouped/rearranged wherever necessary to correspond to current quarter classification.
  
• The above results have been taken on record by the Board of Directors of the Bank at its meeting held on 16th July 2008 and subjected to Review by Auditors.
  

  BANGALORE 16th July, 2008		P.P.PATTANAYAK MANAGING DIRECTOR

State Bank of Mysore
H .O.: K.G.Road, Bangalore - 560009, INDIA
Phone: 91 80 22353901 to 22353909 ; 22353473.
Fax: 91 80 22384480