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Auditor's Report Year End : Mar '10

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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