APGVB Formation

 By amalgamation, on the 31st March 2006, of the following 5 banks, sponsored by SBI, to participate more energetically, with synergy, in the uplift and development of Rural Farm Sector and Rural Non-Farm Sector, with emphasis on the deprived, the Rural Poor, Rural ISB and Rural Crafts.

Sri Visakha Grameena Bank: Established on 30.09.1976

Nagarjuna Grameena Bank:Established on 30.04.1976

Sangameswara Grameena Bank:Established on 31.03.1982

Manjira Grameena Bank: Established on 31.03.1982

Kakathiya Grameena Bank: Established on 28.06.1982

Always Try to be on Top 

K Lakshmana Rao Chairman

Chairman's Message

Dear Colleagues,A year has gone by since I reported at APGVB on 23.09.2011 to assume the charge asChairman of the Bank.Looking back at the past one year of my stay, I have mixed feelings. A few things that wehave achieved during the past one year have been very relevant for the Bank’s growth andstabilization:a) Fresh from migration to CBS Platform, the Bank had many loose ends to address:a. The Reports generated by CBS has been analysed in depth for a morecomprehensive and authentic MIS;b. System Suspense and Technical Suspense Accounts have been zeroised in areasonably short period – something even many commercial banks could notachieve.c. Introduction of BCGA and Issue of Demand Drafts / Bankers Cheques

d. Introduction of Pass Book Printers and DD Printerse. Reconciliation of old Bankers Cheque Accounts.b) Introduction and stabilization of NPA Tracking in CBS systemc) Introduction of Toll free number for the Bank to get feedback from the customers.d) Recruitment of Officers – first time in the Bank after nearly two decades.e) Development of a Personality Development Programme – Vikas Patham - for all stafff) Achieved a business growth of around Rs 2000 Crore and profit of Rs 108 Crore,both highest in the history of APGVBg) Launching of successful Deposit Mobilisation campaigns like “ Operation One lakh “ ,“ Operation 20-20 “ & “ Vikas 63 “. We could mobilise about Rs 350 crores duringthe slack season which is a great achievement. I am happy that most of the staffmembers are actively involved in Deposit mobilisation efforts.I have come to this Bank with a lot of fire in belly. After visiting many branches myself, Ihave set three priorities for this financial year:a) Sustainable business growth resulting in value addition to the people and to ensureutmost quality of credit.b) Strong HR Policies – maximum staff, both serving and retiring, should be happy withthe Bank – A corpus to fund Staff salaryc) Make APGVB as No.1 RRB in the country and a preferred choice for the customerswherever we are.Nearly 20 frauds have surfaced in the last 3-4 months which shows that the staff have notbeen following the systems & procedures. This is fraught with risk and we have to respectthe systems & procedures.Lets all work together to realize these dreams and place our Bank above the rest.We welcome the 72 young officers and 193 Office Assistants to our bank and wish them allsuccess in their careers.The RRBs are in for a sea change in near future. Bank’s image, stability and growth shouldbe the single most item on everyone’s agenda. Collectively, we can realise our dreams. Letus be prepared for the change and benefit from it. I appeal to all staff members, includingrepresentatives of Union and Association, to join hands and contribute their best for fulfillingour aspirations and goals.Bright future is ahead for all of us.We wish a very Happy Dussehra and Deepawali festivals to all the members of staff.(K. Lakshmana Rao)Chairman

Formation By amalgamation, on the 31st March 2006, of the following 5 banks, sponsored by SBI, to participate more energetically, with synergy, in the uplift and development of Rural Farm Sector and Rural Non-Farm Sector, with emphasis on the deprived, the Rural Poor, Rural ISB and Rural Crafts.

Sri Visakha Grameena Bank: Established on 30.09.1976

Nagarjuna Grameena Bank:Established on 30.04.1976

Sangameswara Grameena Bank:Established on 31.03.1982

Manjira Grameena Bank: Established on 31.03.1982

Kakathiya Grameena Bank: Established on 28.06.1982

Districts Covered Eight

Mahabubnagar (Population: 35.09 Lakhs) Nalgonda (Population: 32.43 Lakhs) Medak (Population: 26.70 Lakhs Warangal (Population: 32.46 Lakhs) Khammam (Population: 25.65 Lakhs) Visakhapatnam (Population: 38.32 Lakhs) Vizianagaram (Population: 22.45 Lakhs)

Srikakulam (Population: 25.38 Lakhs)

Headquarters Warangal, Andhra Pradesh

OwnershipGovernment of India :50%Government of Andhra Pradesh :15%State Bank of India :35%

Number of Branches 555

Staff 2,350 willing, young, energetic, empathetic cadre, man these branches

ANNUAL REPORT2010 - 2011ANDHRA PRADESH GRAMEENA VIKAS BANK

Rejuvenating Rural EconomyCome, join uswe are with you!

we are with you!

th 6 Annual Report 2010-11With Best Compliments fromChairmanAndhra Pradesh Grameena Vikas BankHead OfficeWarangal APK. Lakshmana Rao

Empowering Rural Lives01SrikakulamVizianagaramVisakhapatnamKhammamNalgondaSaraswathi complex, Baker sahed peta

Srikakulam 532001, Tel 08942-221041Fax 08942-2210408-12-64/1, Himagiri theatre, New S.P. BungalowVizianagaram 536002, Tel 08922-273956Fax 08922-274221TPT colony, Near Enadu, SeethamdharaVisakhapatnam, Tel 0891-2713942Fax 0891-2746341Wyra Road, Khammam 507002Tel 08742-226816,Fax 08742-228972Ramgiri, Nalgonda,Tel 08682-229943Fax 08682-229945apgvikasbankskl@yahoo.co.inapgvikasbankvzm@yahoo.comapgvikasbankvsp@yahoo.co.inapgvikasbankkmm@yahoo.co.inapgvikasbanknlg@yahoo.co.inWarangalMahabubnagarSangareddyAshoknagarBhadrachalam2-739-1-3, First Floor, RamnagarHanamkonda, Warangal 506001Tel 0870-2577884, Fax 0870-2568010Mettugadda, Mahabubnagar 509001Tel 08542-242861Fax 08542-242862Sangareddy, (Dist) Medak 502007Tel 08455-276263Fax 08455-276603Ramachandrapuram MandalMedak 502032, Tel 040-20040773Fax 040-23020238Bhadrachalam, Khammam 507111Tel 08743-231492Fax 08743-231020apgvikasbankwgl@yahoo.co.inapgvikasbankmbnr@yahoo.co.inapgvikasbanksrd@yahoo.co.inapgvbroash@yahoo.co.inapgvbbcm@yahoo.co.in

& Geographical

Area

Regional Offices02we are with you!

ContentsParticulars PagesFinancialsLetter of Transmittal 04Vision, Mission, Values 05Board of Directors 06Highlights 08Key Performance Indicators 09From the Chairman's Desk 1217Audit Report 57Balance Sheet and Profit & Loss Account 59Schedules & Notes 6185Board of Directors ReportEvents and Happenings03Annual Report 2010-11 we are with you!

The SecretaryMinistry of Finance, Dept. of Economic AffairsBanking Division, Government of IndiaParliament Street, New Delhi-110001Dear Sir,In accordance with the provisions of Section 20 of the Regional Rural Banks Act 1976, Iforward herewith the following documents.A Report of Board of Directors as to the Bank's working and its activities during the periodst st 1 April 2010 to 31 March 2011.st A copy of the audited Balance Sheet and Profit and Loss Account for the year ended 31March 2011.st A copy of the Auditor's report in relation to the Bank's accounts for the period 1 April 2010st to 31 March 2011.

Andhra Pradesh Grameena Vikas BankHead Office : WarangalYours faithfully,Chairman(K. Lakshmana Rao)Date: 31.07.2011

Letter of Transmittal04we are with you! Annual Report 2010-11

&VisionMissionValuesVisionMissionValuesRepositioning the Bank in competitive rural market and accomplish the leadership spot inRural Banking. Aspiring to realize the vision of excelling in Rural Credit and SME. Pursuing thebest practices for delivering the value added service to the customers by transforming thekey branches into profit and business centers.With efficiency and service each one of us works in tandem to deliver quality rural service,no matter where our customers choose to experience it. With the advantage of a largenetwork in the rural hinterland, it is our duty and obligation to serve the rural masses, thedeprived and denied, retail and agriculture sectors through improved processes,deployment of technology, with an emphasis on employment of rural youth, augmentationof agricultural production, up liftment of the downtrodden and unabated service to ruralpoor with commitment to the sacred task of rural development and women's empowerment.Profit orientationCommitment for rural developmentExcellence in customer serviceRespect to systems and proceduresTeam Synergy05we are with you!

ChairmanDGM on deputation fromState Bank of IndiaNominees of Central Government underSection 9 (1) (a) of the Regional RuralBank's Act, 1976Nominees of Reserve Bank of India underSection 9 (1) (b) of the Regional Rural Bank's Asst. General ManagerAct 1976 Reserve Bank of IndiaRegional Office, Secretariat Road, HyderabadNominees of NABARD under section 9 (1)(c) of the Regional Rural Bank's Act, 1976. Deputy General Manager

National Bank for Agriculture and RuralDevelopment, Regional Office, HyderabadNominees of State Bank of Indiaunder Section 9 (1) (d) of the Deputy General Manager (RBU)Regional Rural Bank's Act, 1976 State Bank of India, Local Head OfficeHyderabadDeputy General Manager (PBU)State Bank of India, Local Head OfficeHyderabadNominees of State Governmentunder Section 9 (1) (e) of Regional Secretary, Institutional FinanceRural Bank's Act, 1976 Department, Govt. of Andhra Pradesh.District Collector & Magistrate, Warangal1 Shri K. Lakshmana Rao2 Shri B.Raja Rao3 Shri B. Radhakrishna Murthy4 Shri K.N. Singh Sardar5 Shri D. Hari6 Shri Manoj Khattar7 Shri K.T. Ajit8 Smt Vasudha Mishra, IAS9 Shri Rahul Bojja, IAS,

BOARD OF DIRECTORS06we are with you! Annual Report 2010-11

BOARD OF DIRECTORSShri K. Lakshmana RaoShri B. Radhakrishna Murthy Shri K.N. Singh Sardar Shri D. HariShri Manoj Khattar Shri K.T. Ajit Smt Vasudha Mishra, IAS Shri Rahul Bojja, IAS,Shri B.Raja Rao07we are with you! Annual Report 2010-11

HIGHLIGHTS 2010 -2011vvvvvvvvvvvRegistered a business growth of Rs. 2,012 Crores (26%) -Highest among all RRBs in A.P.Branches of the bank reached to 553 - Largest network amongall RRBs in A.P.Deposits of the bank are Rs 4,794.72 Crores - Highest for anyRRB in A.P.Advances of the bank are Rs. 4,894 Crores - Highest for any RRBin A.P.Recorded Highest net profit of Rs. 108 Crores in 2010 - 2011Networth of the Bank surpassed Rs. 500 Crore, exactlyRs. 513.09 Crore

Established Staff learning centre at Warangal to imparttraining and knowledge to all staff - First among all RRBssponsored by SBI172260 SHGs have been financed by the bank with anoutstanding of Rs. 1472 Crore. This is largest for any RRB in thecountryNumber one RRB in the country among SBI sponsored RRBs inearning maximum commission on SBI life productsCBS implemented at all the 553 Branches - Branches stabilised.Bank recovered Rs. 7.35 Crores during 2010-2011 from writtenoff accounts08we are with you! Annual Report 2010-11KEY PERFORMANCE INDICATORS(Rs in '000)Indicators 2008-09 2009-10 2010-11No. of Districts covered 8 8 8No.of branches 527 538 553a) Rural 408 414 429b) Semi urban 86 88 88c) Urban 33 36 36d) Metropolitan …… …. ….Total staff: Excluding SponsorBank Staff 2160 2221 2234Of which Officers 1385 1322 1298Deposits 33938850 38045125 47947222Growth % 15.69 12.1 26.07Borrowings outstanding 13986471 15999777 19546416Growth % 9 14.4 22.16Gross loans and Advances outstanding 33038840 38697224 48944327Growth % 22.33 17.13 26.48CD Ratio 97.35 101.64 102.08Investments outstanding 17077816 16621685 21472834Growth % 11.23 -2.67 29.19SLR Investment outstanding 6211799 7589071 9996983Non-SLR Investment outstanding 10866017 9032614 11475851Average Deposits 29337087 34159081 39000837Growth % 14.9 16.44 14.17Average Borrowings 10623021 13170900 16607091Growth % 5.6 23.98 26.08Average Gross Loans And Advances 29531173 34117695 43335628Growth % 23.54 15.53 27.01Average Investments 14912212 15857429 15817799Growth % 4.38 6.34 -0.25Average working funds 58912403 62376495 80457660Loans issued during the year 20777800 17992000 38271901Growth % -15.40 -13.41 112.71Of the above, loans to Priority Sector 16622240 15970200 29779956Of the above, loans to Non-target Group 8259700 3166100 8491945AveragesLoans issued during the year09we are with you! Annual Report 2010-11KEY PERFORMANCE INDICATORSIndicators 2008-09 2009-10 2010-11]Of the above, SF/MF/AL 5882373 7049110 12309498Per branch 127092 142643 175207Per staff 31008 34553 43370Demand 17965792 22137900 25472765Recovery 14870454 18049100 20595069Over dues 3095338 408880 4877696

Recovery %(June position) 82.77 81.53 80.85Asset classificationa) Standard 32156991 37814596 46981468b) Sub-Standard 368759 319029 1557742c) Doubtful 380027 525900 389227d) Loss 133063 37699 15890Total 33038840 38697224 48944327Std.Assets % to Gross Loans & Advances outstanding 97.33 97.72 95.99Interest paid ona) Depostits 1699395 2126277 2274695b) Borrowings 922423 1133711 1298240Salary 701460 861664 1005186Other operating expenses 761967 495587 546091a) Against NPAs 401332 402948 476104b) Other provisions 475462 588277 704346a) Loans and Advances 3197146 4283306 5157559b) Current A/c with SBI/Other Banks …. …. ….c) Investments 1274575 1490635 1272310Other income 420132 445226 750752Profit/Loss 692742 1028407 1081292Share Capital deposit received 890850 890850 890850ProductivityRecovery PerformanceProfitability analysisProvisions made during the yearInterest received onOther information10(Rs in '000)we are with you! Annual Report 2010-11KEY PERFORMANCE INDICATORSIndicators 2008-09 2009-10 2010-11CumulativeProvisions against NPAs 401332 402948 476104Interest de-recognized cumulative (INCA) 52180 65802 124406a) No. of accounts 8525 8453 2851b) Amount 99251 229800 76200Reserves/Accumulated profits 2210139 3108850 4190143Loans Written off during the yearParameters 2009-10 2010-11 % ChangeTotal Income (Rs.crore) 622 718 15.43Total expenditure (Rs.crore) 474 562 18.56Net profit (Rs.crore) 103 108 4.85Profit per employee (Rs.lakhs) 4.63 4.86 4.97Return on average Assets 10.16 8.92 -12.2For the yearParameters March-10 March-11 % ChangeCapital, Reserves and Surplus(Rs. Crore) 316 424 34.23Deposits (Rs.crore) 3807 4795 26.03Advances (Rs.crore) 3870 4894 26.48No.of branches 538 553 2.79Capital Adequacy Ratio 11.22 11.85 5.61Net NPA % 1.08 2.82 161At the end of11(Rs in '000)we are with you! Annual Report 2010-11

Chairman'sMessageIt is indeed a privilege to be the Chairman of this Bank, which assumed the proportion of a mini commercial bank after

amalgamation on 31.03.2006, with its presence in over one third of Andhra Pradesh. I am at the helm for a little lessthan six months. The fiscal 2010-11 has been the best year for the Bank in terms of business and the Profit.With a growth rate of 26% each in deposits and advances ( Rs 2012 Core in absolute terms) and net profit of Rs108Crore, both “the highest ever” since its inception on 31.3.2006, the Bank has done well, vis-à-vis previous years. Thenet profit would have been more by around Rs 60 Crore but for the incidence of additional provisioning on ruraladvances and the impact of wage revision. The Bank's growth rates are well above the industry growth of 16% indeposits and 21% in credit.The Bank has also done exceedingly well in bringing down the NPAs to Rs 198 Crore from an alarming level of nearlyRs 900 Crore, thrown up by CBS during the year, although it has doubled vis-à-vis Rs 88.26 Cr as on 31.3.2010.Resources mobilization, correction of technical NPAs, upgradation of NPAs and recovery in AUCA( Rs 7.35 cr),strengthening of Balance Sheet as well and internal control mechanism had been our focused areas during the year,while reconciling the System Suspense and Cash differences as on 31.3.2011 in CBS environment, has been a significantachievement.Although the growth rates and business volume are certainly positive and encouraging features of the Bank, there arecertain concerns that need to be addressed immediately. With structural changes in administrative set up as envisagedin Thorat Committee Recommendations and adoption of Core Banking Solutions – two major decisions in administrationand functioning of branches respectively, the Bank has gone back to budding stage, learning the new technology whichis entirely different from bygone environment of manual or semi computerized operations.Another important ingredient of the APGVB's present transformation-stage is the infusion of new blood into the Bankby means of recruitments, after a gap of nearly two decades – around 300 people are dotting the map of APGVB withanother 419 joining the team of APGVB. They are tech-savvy, energetic, youthful, craving for recognition and young in12we are with you! Annual Report 2010-11age and fresh in thoughts. There is a blend of enormously experienced staff - some on the verge of retirement, some intheir prime between 45-55 – and fresh employees beginning to blossom. I reckon this is a crucial period for the Bank'sfuture. The new entrants to the Bank, need to be properly nurtured, trained, groomed and oriented so that they canassume the role of professional bankers and own the responsibility of running the Bank in the future. The average ageof staff which has been 53+ is coming down to 51 with this splendid additions.The outlook for RRBs in the Indian financial system is bright as they have come to occupy the attention of regulators andpolicymakers alike in recent times. Dr. K.C. Chakravarthi Committee's recommendations, accepted by theGovernment of India, have far reaching impact on them. RRBs are being brought within the internationally acceptedframework of Basel-I norms and proactive measures were suggested to make the RRBs more vibrant and professional.To inject professionalism and competitive spirit in the functioning of RRBs, they have been permitted to pay dividendto Share holders with effect from 1.4.2013, which will increase the stake holders interest in the RRBs. Massive

promotional avenues have been opened up through Thorat Committee Recommendations and the Bank is geared tocomplete the man power planning be it recruitments from the market or internal promotions.The RRB structure in Indian banking scenario in general and rural credit delivery system in particular has deepenedwith the GOI and RBI stipulating adoption of Core Banking Solutions Technology in all RRBs, which can virtuallyfacilitate RRBs to hook to any other financial and banking networks in India to accentuate its presence in Indian bankingand financial system. Leading technology providers like TCS, Infosys have provided CBS solutions to RRBs unlike in thepast where RRBs used to outsource technology from small ticket companies. RRBs can synergise with Sponsor Banks insharing technology and offer co-branded tech-enabled banking services.RRBs are shedding their old skin to do the functions of a normal Commercial Bank, within the rules and regulationsstipulated by RBI.RRBs were subject to quite a number of limitations in the past, prior to amalgamation, in terms of area of operation,limited opportunities for diversification of business, human resources base, technology adoption, demographic profileof clientele, a niche market etc., with limited option to scale up or scale down banking operations depending upon themarket requirements. Some of these barriers have already been broken with structural changes, while it is time fornd the Bank to follow robust and sophisticated banking practices. RRBs are commercial banks in nature, included in 2Schedule of RBI Act 1934 and they have come of age to truly become commercial banks in character and fulfill itsmandate effectively in serving the rural poor, especially micro- entrepreneurs, in the agricultural and non-farmsectors.There is no dearth of banking business potential in rural areas. It is a fact and widely gets reported in media thatbanking facilities are lacking in rural areas and villages. Statistics reveal that of around 6 Lakh villages in India, only10% have access to banking services, giving scope for abundant business potential. Banking majors have beentargeting the rural areas for exploiting the potential. Having been in the rural space for the last thirty five years, wehave edge over others who are now entering the markets. There would not have been a better time for RRBs than now,to change its face and build strong banking institutions.The theme of BANCON 2010 i.e., “Transform to Outperform” is apt to be a tagline to the Bank.In retrospection, the RRBs can be termed as victim of circumstances. When the agriculture and rural sectors were in13we are with you! Annual Report 2010-11dire need of institutional financial support, with the commercial banks and cooperatives not being able to penetrateand do the job and money lenders thriving on the rural poverty, RRBs were made to take birth and go there. They drovethe money lender out, atleast partially, if not fully and played a very key role in financing agriculture and ruraldevelopment. RRBs acted as instruments in the hands of Government in their direct attack on rural poverty. WhereverRRBs have existed, the people have had the banking facilities and financial support, irrespective of the quality of theother dimension of banking i.e., repayment of loans, by virtue of various policies. RRBs suffered in the process, by

accumulating losses – a change of place for poverty. This was not an un-anticipated phenomenon, going by a remarkcontained in a report issued by the Narasimham Committee in 1976, which stated that “any losses incurred by the RRBswould be a price worth paying, given the social benefits that would be attained”. The RRBs indeed have caused social /moral benefits to accrue in rural areas by covering vast geographical area.In the subsequent phase in this process, RRBs witnessed visible changes in the approach of policy makers, impactingthe RRB, injecting the sense of sustainability and viability as an Institution – capital infusion, restructuring,deregulation of interest rates, revision of priority sector norms on par with other commercial banks, recommendingimplementation of CBS, proposed introduction of Basel norms etc., all point to a direction to the RRBs to change for thebetter and be one among the many players competing for rural pie.Over a period, technology has arrived and demographic profile has changed in the rural areas and there are moreplayers to bank on the unbanked. Added to it, ICT solutions and BC model of branchless banking is going to increase thenumber of players more, forcing RRBs to compete for the business. The mandate and objectives have not changed butrules of the game did change.Let me conclude by hoping that the Bank will be resilient to meet the challenges posed by the changing environment,capitalise on the opportunities and emerge as the strongest of all RRB s in the Country.Yours sincerely,K. Lakshmana RaoChairman14we are with you! Annual Report 2010-11

Executives speak...Shri N. RameshGeneral Manager (Credit)The Bank's advances grew by 26%, which is the highest ever growth in any yearafter amalgamation in 2006. The Bank is playing major role in implementation ofAnnual Action Plan in the eight districts of our area of operation. The Bank hasstarted Financial Inclusion Project in four districts of the State and the process ofidentification of BCs and BFs and issue of Smart Cards is in progress. We arehopeful of covering all villages with population of over 2000 allotted to the Bank,to serve the poorest of the poor at their doorsteps, by offering various services likeGOAP EBT, apart from introducing Bank's deposit and other products.Growing NPAs is a major cause of concern to all of us, which have increased mainly due to non recovery ofcrop loans issued during 2007-08 due to the negative impact developed in the minds of good farmers afterthe implementation of Agriculturl Debt waiver / Debt relief scheme by Govt. of India during the year2008.However, we are hopeful of regularizing the position during the next FY 2011-12 by intensifying therecovery efforts from the beginning of the year itself.15

Shri K. SolomonGeneral Manager (Operations)The Bank could fulfill all its statutory requirements during the year viz.,CRR, SLR, CAR etc., and made a huge difference in funds management,resulting in maintenance of fine cash balances and increased profitability.It is heartening that the Bank posted highest profit during the year,increasing the efficiency levels year after year.The Bank with its meager resources during the year, is able to generate

the income for the individual rural customers, increase their purchasingcapacity, empowering a large number of women financially and could provide inclusivebanking to the rural masses who cannot afford the banking services, through low/no-costinnovative technology thus was able to not only benefit farmers immensely, but the bank waseven posted an increased income over the last year through the dedicated and committedstaff although handicapped by their age profile and financial constraints.we are with you! Annual Report 2010-11The year 2010-11 is of great importance in the Bank's history withvarious initiatives taken in HR front. The Bank has recruited 163Office Assistants and initiated measures for recruitment of another193 Office Assistants and 73 Officers, apart from promotions in allcadres as per Thorat Committee norms and categorization ofBranches, which includes 23 Scale-IV Promotions. The Bank iscontemplating recruitment of Staff in all cadres during the nextFinancial year 2011-12, in terms of Thorat Committee manpowernorms and to meet the gap caused on account of mass retirementsin the Bank.Leveraging Technology - The entire banking industry has adoptedtechnology to increase operational efficiency and superior customerservice. So has APGVB, the first RRB in the country with 500+Branches to achieve full-fledged Core Banking Solutions in itsoperations. The adoption of technology would enable the Bank toimprove financial analysis capability, minimize transaction cost,focus more on marketing the Bank's products and services. TheBank has a challenging task of sensitizing staff in all cadres to derivemaximum benefits from the CBS environment.Shri P.A.S. Sudhakar RaoGeneral Manager (HR)Further, setting up of Bank's own Staff Learning Centre, fully equipped with computer lab,residential accommodation with own faculty, is a milestone in Bank's history. The Bank isdesigning a unique personality development programme by name “Vikas Patham” through SLC.The capacity utilization was more than 80%. The Bank has taken various Staff WelfareMeasures including Group Mediclaim Policy for Staff, implementation of salary revision as per 9th

Bipartite Settlement and payment of arrears.The Bank is also taking steps to introduce value added services like RGTS/NEFT, anywhereBanking and co-branded ATM Services to meet the requirement of new generation customers.Shri M. Krishna RaoGeneral Manager (IT)

Executives speak...16we are with you! Annual Report 2010-11

BOARD OFDIRECTORS' REPORT2010 - 11BOARD OF DIRECTORS' REPORT: 2010 - 11

Business growthth We have pleasure in presenting the 6 Annual Report of Andhra Pradesh Grameena Vikas Bank (APGVB) together withthe Audited Statement of Accounts, Auditors' Report and the report on business and operations of the Bank for thefinancial year ended 31 March 2011.The fiscal 2010-11 has been eventful with many milestones created. The Bank has registered a growth of Rs 2012 Crorein total business vis-à-vis the business growth of Rs 979 Crore during last financial year. When APGVB was formed byamalgamation of five erstwhile RRBs on 31.3.2006, the total business as on that date was Rs 4001 Crore – a levelachieved by erstwhile RRBs over three decades, while more than half of it, has been achieved in a single year. Vieweddifferently, the total business growth achieved from 1.4.2006 to 31.3.2010 was Rs 3676, 55% of which was achieved inone year i.e., in 2010-11, which is a remarkable achievement by any standard.For an RRB, in addition to profitability, volumes matter most, which directly is a measure of banking activity in “ruralareas”. Increasing rural savings and impacting economic activity in rural areas by lending, each to the tune of aroundRs 1000 Crore, is fairly gratifying facet of the Bank's performance.The Bank has registered a business level of Rs 9689 Crore as on 31.3.2011 with a growth rate of 26% over March 2010level of Rs 7677 Crore.The deposits have reached a level of Rs 4794.72 as at the end of Mar 2011, vis-à-vis Rs 3807 as on 31.3.2010, registeringa growth of 26%.Advances registered a growth of 26% during the year with a total outstanding of Rs 4894.43 Crore over March 2010 levelof Rs 3870 Crore.(Rs in Crores)968976776698563548130200040006000800010000120002006-07 2007-08 2008-09 2009-10 2010-112718 2934 3394 380747953870 489433042095 270119we are with you! Annual Report 2010-11ProfitabilityThe Bank's operating profit (before provisions) hasincreased by Rs 35 Crore to reach Rs 206 Croreduring the year, as against the previous year's Rs 171Crore. The Bank posted a net profit of Rs 108.13Crore during the year as against Rs 89.87 Crore forthe year 2009-10. The growth in net profit has beenshadowed by the huge provisions made towardsNPAs and agricultural loans during this year.Income and ExpenditureParticulars 2010-11 2009-10Interest Income 642.98 577.39Interest Expenditure 357.29 326.00Non-Interest Income 75.07 44.52

Non-Interest Expenditure 155.12 135.72Provisions written back 0 (-)10.94Gross Profit/Operating profit 205.64 171.13Taxes 48.35 45.42Provisions and Contingencies 49.16 22.87Provision for Salary hike 12.74*Previous year's taxes 23Net Profit 108.13 89.87*To the extent of provisions made during the year 2009-10, on account of revision of salary, the operating expenditurehas increased by Rs 14 Crore on account of Salary Payments during the year 2010-11, offsetting extra charge to theprevious year's profit.Net Interest IncomeDuring the year, the Bank has recorded a growth of Rs 65.59 Crore (11.36%) in Interest Income from Rs 577.40 crore inthe year 2009-10 to Rs 642.99 crore, as against the Interest expenses which grew by 9.6% from Rs 326 Crore during thefinancial year 2009-10 to Rs 357.29 crore during the year 2010-11. The Bank recorded a Net Interest Income ofRs 285.70 Crore during the year as against Rs 251.40 Crore during 2009-10 with a growth of Rs 34.30 Crore.11.836.9569.27103 1081201008060402002006-07 2007-08 2008-09 2009-10 2010-1120we are with you! Annual Report 2010-11Interest earned on advances has gone up byRs 87.43 Crore (20.41%) to reach Rs 515.76 Crorefrom Rs 428.33 crore. The growth in interest onadvances was higher at Rs108.62 during 2009-10.Interest income from Investments rose by 27.82%to reach Rs 82.16 Crore from Rs 64.28 Crore duringthe year 2009-10.Interest expenditure on deposits registered amoderate growth of 6.98% as against 25.12% in theyear 2009-10. The interest expenditure ondeposits was Rs 227.47 Crore as against Rs 212.63Crore in the previous year. This is due to the majorshare of Demand Deposits with lower interestrates, in the total deposits growth at 70%.Interest expenditure on borrowings was Rs 124.09Crore with a growth of Rs 16.36 Crore (at 15.19%).The growth of 15.19% is moderate vis-à-vis the previous year's growth at 19.26%.The year 2010-11 witnessed moderate increase in net interest income and drastic decrease in net interest expenditure– which is due to higher growth of demand deposits vis-à-vis term deposits.(Rs in Lakhs)Other IncomeThe component of Other Income has reachedto Rs 75.06 Crore with a remarkable growthof 68.06% as against the previous year's levelof Rs 44.52 Crore. This growth has been dueto plugging of income leakage in CBSenvironment, coupled with increase in

commission on account of processing chargeson advances growth of Rs 1024.68 Crore andnon-fund business including cross selling ofSBI Life products. The Bank has been No.1 inthe country among RRBs in marketing SBI Lifeproducts for the two consecutive years.Operating ExpenditureThe total Operating expenditure during the year was Rs155.12 Crore as against Rs 135.73 Crore in the previous yearwith an increase of Rs 19.39 Crore (at 14.29%). The growth is conspicuous as against the negative growth of 7.25%during 2009-10. The two factors that propelled the Operating expenditure are the impact of wage revisionth (9 Bipartite Settlement) and payment of the full-fledged monthly rentals for maintenance of CBS software andhardware, for all branches and Regional Offices. Higher provision towards employee benefits such as LeaveEncashment and Gratuity Fund have also impacted the growth in Operating expenditure. The other overheads havebeen maintained at the normal level and are under control.21Int Expenditure on DepositsInt Expenditure on Refinance1293116994212632274710773 124097753 90330 2008 2009 2010 20115000100001500020000250006513 7105 6428 821631360 3197142833 515761000020000300004000050000600002008 2009 2010 20110Int Income on AdvancesInt Income on Investmentswe are with you! Annual Report 2010-11Provisions for NPAsThe Bank has made an additional provision of Rs 50.06 Crore towards NPAs including a provision of Rs 31.56 Crore onrural advances. The rural advances are vulnerable to the changes in rural socio economic climate and environmentalinfluences. This will be a cushion to the Bank, in case of slippages in performance of rural advances.Ratio AnalysisThe cost of deposits has come down to 5.83 % from 6.22 % while cost of funds to 4.37 from 5.14. This is due to concertedefforts of mobilizing low cost deposits and improving the share of Savings Bank component. The yield on advances hasgone down to 11.90 % from 12.55 % on account of increase in NPAs. The yield on investment has also come down to7.90% from 9.40% due to low interest regime during the year.Balance Sheet Size

Total balance sheet size was Rs 7646.14 crore with a remarkable increase of 24.88% over Rs 6122.98 crore as at March31, 2010. The growth in Balance Sheet size has been spectacular in comparison to the growth rates of 14.18% and11.67% registered in the preceding two financial years viz., 2009-10 and 2008-09 respectively.While Deposits have grown by 26% over March 2010 level, borrowings rose by 22.16%, taking the aggregate growth oftotal liabilities (excluding Capital and Reserves) to 24.08%.On Assets side, the loan portfolio and investments have grown more or less equally at 26% and 27% respectively to reachRs 4834.53 Crore and Rs 1032.70 Crore respectively, from the FY2009-10 levels of Rs 3822.85 Crore and Rs 814.96 Crorerespectively.AssetsO/s Provisions O/s Provisions O/s ProvisionsStandard 4698.15 13.69 3781.46 10.66 3215.69 10.52Sub Standard 155.77 24.29 31.90 3.56 36.88 4.16Bad & Doubtful 40.51 21.77 52.59 33.39 38.00 22.97Loss 1.54 3.77 3.35 13.31 13.01Total 4894.43 61.29 3869.72 50.96 3303.88 50.662010-11 2009-10 2008-09(Rs in Crores)22we are with you! Annual Report 2010-11LiabilitiesTier-I and Tier-II CapitalThe Bank's authorized and paid up capital continued to be Rs 5 Crore comprising of 5 Lakh shares of Rs 100 each,subscribed by Government of India, Government of Andhra Pradesh and State Bank of India in the ratio of 50 : 15 : 35.The Bank has a Share Capital Deposit amount of Rs 89.08 Crores, subscribed by the promoters in the same ratio, in thepre-amalgamation stage of RRBs i.e., in 1996-97, as a measure of capital infusion for strengthening the balance sheets.The building up of Reserves and Surplus has been steady, strengthening the Bank's Balance Sheet year after year,although the rate of accretion to the Fund has been moderating. The Reserves and Surplus has increased by 34.78% toRs 419.01 Crore over Rs 310.89 Crore as on 31.3.2010, indicative of the Bank's sustained earnings and steady forwardmoving on the path of sustainability.23

Assets Liabilities (Rs in Crores)151.74221.01310.89419.010501001502002503003504004502008 2009 2010 2011Reserves(Rs in Crores)Deposits4795,62%Borrowings,1955,26%

Others,384, 5%Capital &Reserves513, 7%Investments1033, 14%Advamces4835,63%Cash withBanks, 163721%Fixed & OtherAssets, 142,2%we are with you! Annual Report 2010-11The following table gives the position of Tier-I, Tier-II capital, Reserves and computation of CAR.Capital 2010-11 2009-10a. Paid up Capital 5.00 5.00b. Share Capital Deposit 89.08 89.08c. Statutory Reserves & Surplus 85.13 63.51d. Capital Reserves 0.01 0.01e. Other Reserves 14.31 14.31f. Surplus in P&L 319.55 233.04Total Tier-I Capital 513.09 404.97a. Undisclosed Reserves - -b. Revaluation Reserves - -c. General Provisions & Reserves 71.33d. Investment fluctuations Reserves / Fund - -Total Tier-II Capital 71.33Grand Total (Tier I + Tier II) 584.433. a. Adjusted value of funded risk assets i.e., balance sheet items 4838.75b. Adjusted value of non-funded risk assets i.e., balance sheet items 0c. a+b 4838.75d. Percentage of Capital (Tier-I + Tier II) to Risk Weighted Assets 11.85 11.221. Tier-I2. Tier-IIThe Bank has achieved a healthy Capital to Risk-weighted Asset Ratio (Capital Adequacy Ratio) of 11.85% calculated asper RBI guidelines. The CAR has been on upward movement increasing from 10.67% in FY 2008-09 to 11.22% in 2009-10and further to 11.85%.The Bank's CAR is well above the levels envisaged to be achieved by RRBs, by Dr. K.C. Chakravarthi Committeest st Recommendations i.e., 7% by 31 March 2011 and atleast 9% from 31 March 2012 onwards.DepositsTotal Deposits of the Bank as at the end of March 2011 was Rs 4794.72 Crore with a growth of Rs 990.20 Crore at 26.03%as against Rs 3804.51 Crore as on 31.3.2010. Savings Bank Deposits have grown by 41.11% to Rs 2212.19 Crore andCurrent Account by 38.20% to Rs 179.38 Crore from their respective levels of Rs 1567.68 Crore and Rs 129.80 Crore as on31.3.2010. Term Deposits grew relatively at a lower rate of 14.05% to Rs 2403.14 from its previous year's level ofRs 2107.03 Crore. The share of CASA Deposits is exactly 50% of the total deposits as against its share of 45% inFY2009-10, on account of which Cost of Deposits has come down to 5.83% from its previous year's level 6.22%. This hascontributed to the profitability of the Bank.23(Rs in Crores)

we are with you! Annual Report 2010-11Deposit mix 2008 2009 2010 2011Current A/c 124.71 163.18 129.80 179.38Growth 90.33 -33.38 49.58Growth %age 72.43 -20.46 38.20Savings Bank A/c 1463.28 1439.94 1567.68 2212.19Growth -23.34 127.74 644.51Growth %age -1.60 8.87 41.11Total CASA 1587.99 1603.12 1697.48 2391.57Growth 1513 94.36 694.09Growth %age 0.95 5.89 40.89Term Deposits 1345.51 1790.77 2107.03 2403.14Growth 445.26 316.26 296.11Growth %age 33.09 17.66 14.05Total deposits 2933.50 3393.89 3804.51 4794.71Growth 460.39 410.62 990.20Growth %age 15.69 12.10 26.03The present ratio of CASA and Term Deposits is a healthy sign which has to be sustained by broad-basing the customerbase. The Bank has responded to the changing dynamics of the banking industry and aligned interest rates accordingto the trends to offer competitive interest rate to the customers. In a bid to attract the new customers as well asretaining the existing ones, a variety of new Deposit Schemes viz., Vikas-800 and Vikas-1000, Vikas-400 with thenomenclature associated with term of deposit products have been introduced during the year at appropriate time withcompetitive interest rates, offering a bunch of choices to the customers, to suit their saving needs.Targeting the small business and salaried customers, a tailor-made RD product namely “Vikas Lakshadhikari RDScheme” was launched to attract long term customer loyalty. We had focused attention on increasing the customerbase by launching campaign “Opening of Savings Bank A/cs”. During the year, there is a net growth of 345740 innumber of depositors.25(Rs in Crore)21882718 293433943805479505001000150020002500300035004000450050002005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Deposits(Rs in Crores)we are with you! Annual Report 2010-11As the technology goes up and commercial banks update / upgrade their technology-oriented products / services, RRBsstand at a disadvantageous position in taking on the competition in resources mobilization and attracting newcustomers. (A detailed discussion on this, appears in the Management Discussion and Analysis).BorrowingsBorrowings is the only other variable source of funds for the Bank's operations, apart from deposits. As per laid downpolicy, the Bank has access to avail refinance from State Bank of India (being Sponsor Bank) and National Bank for

Agriculture and Rural Development(NABARD) for Short Term Seasonal Agricultural Operations (Crop loans) and medium& long term loans to Self Help Groups etc. SBI provides refinance to the extent of 60% and NABARD 30% of the loandisbursements of crop loans (10% being own stake) while NABARD provides 100% for loans disbursed to SHGs. Therefinancing agencies lay down policy, criteria and terms & conditions for availing refinance, every year, basing onwhich the Bank seeks sanction of certain credit limits for that particular year from the Board Of Directors, keeping inview the Bank's Annual Action Plan.During the year, the amounts borrowed as refinance from SBI & NABARD stood at Rs 718.65 Crore and Rs 1235.99 Crore(outstanding as on 31.3.2011) respectively.The Bank has also availed refinance from National Housing Bank towards financing rural housing to the extent of Rs 50Crore, taking the total outstanding as on31.3.2011 to Rs 200 Cr.The total borrowings as at the end of Mar 2011, grew by Rs 22.17% to Rs 1954.64 Crore from FY2009-10 level of Rs1599.98.The usual growth in borrowings is in tandem with the growth in agricultural and SHG lending.(Rs in Crores)Particulars 2008 2009 2010 2011SLR Investments 568.45 621.17 758.90 999.69Growth 52.72 137.72 240.79Growth %age 9.28 22.17 31.73Non SLR Investments 966.84 1086.60 903.26 1147.58Growth 119.75 -183.34 244.32Growth %age 12.39 -16.87 27.05Total Investments 1535.29 1707.78 1662.16 2147.28Growth 172.48 -45.61 485.11Growth %age 11.23 -2.67 29.19As on 31.3.2011, total investments of the Bank (both SLR and Non SLR) have gone up by 29.19% to 2147.28 Crore fromRs1662.17 Crore during the FY 2009-10. The 29.19% growth in investments during 2010-11 is conspicuous vis-à-visnegative growth of 2.67% registered during 2009-10. Significant improvements in funds management have beenbrought in, which enabled Non SLR investments to grow up by 27.05% from FY09-10 level of Rs 903 Crore to Rs 1148Crore as on 31.3.2011. The Accounts department at Head Office monitored the funds flow everyday and idle fundsAssetsInvestments26we are with you! Annual Report 2010-11have been transferred to Head Office by Sweep facility and these funds are deployed profitably.The Bank's investments have two channels – one for the purpose of maintaining Statutory Liquidity Ratio under Section24 of the Banking Regulation Act in the form of Government Securities and the other with Sponsor Bank Branches in theform of Term Deposits.Investment of our Bank's funds is managed by Investment Committee headed by Chairman with four General Managers(viz., Credit, Operations, HR and IT) and three Chief Managers (viz., Accounts, Planning & Credit) as members. TheCommittee meets periodically to review and deploy the funds in SLR or Non SLR instruments. The actual investment inGovernment securities, including selection of securities etc., is being done by Sponsor Bank's Portfolio Management

Services, Mumbai in accordance with an agreement entered into, to this effect. The premium paid in purchasing theGovernment Securities, is amortised during the tenure of the investment. A sum of Rs 3.74 Crore has been amortisedduring the year.Non SLR investments at present are invested in TDRs with Sponsor Bank Branches. However, a sum of Rs 18 Crore is inPSU bonds invested by erstwhile RRBs and Rs 15 Crore in SBI Mutual Funds invested after amalgamation, all of which willmature by June 2013.The investment policy approved by the Board is in conformity with the RBI guidelines and is reviewed by the Board onhalf yearly basis, apart from controlling the investment decisions.The Bank has been monitoring and following up for prompt receipt of interest due from Government Securities /Bonds.CRR and SLRCredit PortfolioThe Bank has complied with the regulatory requirement of maintenance of adequate balances towards CRR and SLR.There was no default in maintenance during the FY 2010-11. The Bank has a well-laid down system of assessing the CRRand SLR requirements on fortnightly basis taking into account the Net Demand and Time Liabilities. The Bank has keptRs 283.22 cr in CRR as on 31.03.2011 while Rs 1185.03 cr in SLR.The credit portfolio of the Bank rose by 26.46% to Rs 4834.53 Crore during the financial year ended 31.03.2011, fromthe previous year's level of outstanding of Rs 3822.85 Crore. Agriculture & allied activities, housing, SME segments,micro credit, are the areas which occupied the major share in the credit growth. With favourable monsoon, all thedistricts of our Bank's area of operation received more than normal rains during the year and there has been consistentdemand for crop loans and SME segments.27we are with you! Annual Report 2010-11Credit to AgricultureThe Bank has been achieving the Agricultural credit targets set by State Government through State Level BankersCommittee. The targets of Annual Action Plans of our Bank has been the highest among all Banks in the state of AndhraPradesh, next only to SBI, Andhra Bank and SBH. The Bank has disbursed Rs 1443 Crore towards production creditduring the year, of which Rs 1191.27 Crores to the existing customers by way of renewals and Rs 252 Crore to cover newfarmers. The production credit disbursed during this year, is 70% more than the last year's disbursement of Rs 848 Croreduring 2009-10. The Bank has extended Rs 512.49 Crore towards investment credit during the year.Total credit to agriculture (including a portion of SHGs) is Rs 3563.00 Crore, constituting 73% of the total loan portfolio,as against Rs 2772.84 Crore during 2009-10.For the year 2010-11, the Bank has accepted a total target of Rs 2281.20 Crores for financing agriculture - productioncredit of Rs 1778.72 Crore and investment credit Rs 502 Crore, constituting 5.44% of the total State target ofAgriculture Credit. The Bank has achieved the target by 66.04% by covering 41096 customers.28Regional Office wise CD Ratio for the year 2010-11The Bank has been consistent in credit dispensation and expanding outreach.CD Ratio77.09

92.06 97.35 101.64 102.082006-07 2007-08 2008-09 2009-10 2010-110204060801001201021531511341331291191101039488Total BankBhadrachalamWarangalVizinagaramSrikakulamMahabubnagarKhammamNalgondaSangareddyVisakhapatnamAshoknagar0 20 40 60 80 100 120 140 160 180CD Ratio The Credit Deposit Ratio has been around 102 % for the last two financial years.we are with you! Annual Report 2010-11Kisan Credit CardsThe Bank aims at issuing Kisan Credit Cards to all eligible crop loan borrowers, providing hassle free, adequate andtimely short term credit support to the farmers for their crop production needs including purchase of inputs in aflexible and cost effective manner. The Bank has issued new Kisan Credit Cards to 98277 borrowers with a disbursedamount of Rs 251.67 Crore, during the year for a period of three years, taking the total Cards issued to 580846. Thetotal outstandings as at the end of 2010-11 was Rs 1705 Crore, included in the credit to agriculture. All KCC holdersupto the age of 70 are automatically covered under Personal Accident Insurance Scheme, during the three year cardholding period, with risk coverage of Rs 50000. The annual premium of Rs 15/- per Card is jointly borne by the BankRs 10/- and the borrower Rs 5/-Interest subventionSelf Help GroupsAs per the directives of Government of India, the Bank extended 1.5% interest subvention Scheme to all crop loansincluding agricultural gold loans sanctioned to the farmers upto the limit of Rs 3 Lakhs, sanctioned during Kharif andRabi seasons from 1.4.2010 to 31.3.2011. An amount of Rs 8.18 Crore has been passed on as interest subvention to297172 farmers during the year. The crop loan segment has witnessed prompt repayment of Rs 83.80 Crore by 19118farmers and the Bank as per Government of India directives, has passed on 2% interest incentive to them, amounting toRs 63,11,583.

The Bank has been a pioneer in promoting Self Help Groups and providing Linkage with Bank credit, with the primaryobjective of empowering rural women to graduate to micro enterprises to generate income on sustainable basis. Theinitiatives of the Bank, in alignment with the Government's priorities and focus, have resulted in around 2550000 ruralwomen, in other words that many households in rural areas, finding a solution to their economic problems byinculcating thrift and providing adequate credit. It is a common feature in every rural branch of the Bank, on any givenday that a large number of women folk visit and transact their business with the Bank.(No. of KCC)572948634143433142 48644858084601000002000003000004000005000006000007000002006-07 2007-08 2008-09 2009-10 2010-1129we are with you! Annual Report 2010-11No.of Groups Outstanding (Rs in Crore)The Bank has financed to 89,781 Groups with a disbursement of Rs 1169.14 Crore, including 23236 new Groups whichare credit linked during the year with a disbursement of Rs 174.27 Crore. As on 31.3.2011, the total number of groupsfinanced by the Bank stood at 172260 with an outstanding of Rs 1472 Crore, constituting 30.69% of total creditportfolio. The loan outstanding balance per group has increased from Rs 0.72 Lakhs to Rs 0.85 Lakhs.Priority Sector LendingPriority sector lending by the Bank during the year, continued to occupy the major share of the total credit portfolio.The total outstandings in the Priority Sector advances reached to Rs 4039 Crore as at the end of March 2011 vis-à-visprevious year's level of Rs 3209.88 Crore, keeping pace with the growth in advances. The share of priority sectorfinance in the total outstanding, continued to be around 80% since inception, which indicates the Bank's continuedthrust and commitment to priority sector lending. During the year, the Bank has disbursed Rs 2977.99 Crore to 510220borrowers under priority sector, with agriculture sector garnering 52%, other priority sectors like SHGs, EducationLoans and Housing 43% and remaining 5% to Non farm sector.30

SHG/HL/EL Agri. SectorNFS (ISB)1749.2243% 2091.6652%191.935%1164 1472905

606216 332020040060080010001200140016002006 2007 2008 2009 2010 201117226016107713970810635082835601400200004000060000800001000001200001400001600001800002000002006 2007 2008 2009 2010 2011The Bank's contribution and commitment to the SHG movement has been on the rise yearafter year as shown below.we are with you! Annual Report 2010-11Lending to weaker sections constitutes 80% (i.e., Rs 2382 Crore) of total priority sector disbursements of Rs 2977.99Crore, while 38% (i.e., Rs 1141 Crore) went to women borrowers. The following table shows the outstanding of theloans to various sections of the borrowers:2010-11 2009-10Sector No. of A/cs O/s No. of A/cs O/s1. Weaker Sections 775273 3347.23 559480 2448.62. Women borrowers 480329 2282.12 468637 2082.623. Minorities 43782 194.61 38739 147.284. SCs/STs 211876 873.10 202744 748.00The following table shows the outstanding credit extended to Central and State Government Sponsored Schemes as on31.3.2011.2010-11 2009-10(Rs in Crore)(Rs in Crore)Participation in State Credit PlansThe Bank has actively participated in the State Credit Plans for promotion of agriculture and rural development. Thefollowing table shows the level of achievement of targets allotted to the Bank:31Scheme No. of A/cs O/s No. of A/cs O/s1. SC Action Plan 19876 66.72 19351 54.322. ST Action Plan 21326 31.91 10745 26.503. BC Action Plan 4976 11.77 2941 8.714. Rajiv Yuva Sakthi 432 4.16 341 3.265. Handloom Weavers Groups 2246 8.04 2211 7.672010-11 2009-10Segment1. Crop Loans 1778.72 2027.53 1736.03 1502.212. Total Agr & allied activities 502.48 63.59 267.87 125.28

3. NFS 167.41 89.73 143.19 123.154. OPS 627.04 797.15 697.69 605.455. Total Priority Sector 3075.66 2978.00 2842.85 2356.09% of achievement 96 82Target Achievement Target AchievementAPGVB Position(Rs in Crore)we are with you! Annual Report 2010-11Retail LendingThe Bank's retail loans portfolio consists of Housing Loans, educational loans, mortgage loans, personal loans, demandloans, personal gold loans and term loans in Non Farm Sector.O/s Mar - 2010-11 O/s Mar - 2009-10S.No Segments No of A/Cs Amount No of A/Cs Amount1 Housing Loans 6380 205 5387 116.352 Mortgage Loans 4923 98 4882 89.853 Education Loans 4506 72 3964 56.634 Demand Loans 33560 129 43648 140.255 Non Farm Sector - Term Loan 54726 164 56900 151.516 Personal Loans 17156 160 16056 136.027 Personel Gold Loans 84142 326 79072 225.93Total 205393 1124 209909 916.54(Rs in Crore)Small & Medium Enterprises and Small Business FinanceHuman Resources DevelopmentThe outstanding credit to the SME & SBF stood at Rs 191.93 Crore vis-à-vis Rs 78.65 Crore as on 31.3.2010 registering agrowth of 95%. During the year, a sum of Rs 153.42 Crore has been financed to 7254 units.During the year 2010-11, the Bank has witnessed significant developments in HR initiatives, many of which will have farreaching impact on the future of the Organisation. Strongly believing in motivating the staff at every availableopportunity and enhancing the efficiency levels, APGVB has adopted a very proactive approach in promoting careerprogression to employees at all levels. The Bank is passing through a phase akin to transformations in terms of humancapital, opening up huge promotional avenues and career growth opportunities. There was embargo on recruitmentsof staff from early 1990s and the Bank somehow managed to cope up with the business growth manifold with theexisting personnel. The staff who joined the erstwhile RRBs between 1976 and 1980 has reached the superannuationstage now, retiring en-masse in lots every month, creating vacuum at managerial level. This has created promotionaland recruitment opportunities in the Bank in a big way. This juncture has coincided with the notification of Regional322010-11 2009-10Segment1. Crop Loans 26261.00 30229.00 23500.00 24845.002. Total Agr & allied activities 11574.00 17701.00 9000.00 12728.003. NFS 8150.00 11051.00 8000.00 7148.004. OPS 15700.00 13897.00 15000.00 12200.005. Total Priority Sector 61685.00 72878.00 55500.00 56921.00% of achievement 118 102Target Achievement Target AchievementState Position(Rs in Crore)we are with you! Annual Report 2010-11Rural Banks (Appointment and Promotion of Officers and Employees) Rules, 2010 in July 2010, as per the

recommendations of Amresh Kumar Committee accepted by Government of India, preceded by implementation ofThorat Committee Recommendations on Comprehensive Manpower Policy, to pave way for quick career growth to theexisting as well newly recruited employees.The Thorat Committee norms accorded scope for career prospects to RRB employees upto Scale-V grade, prior to whichOfficer Scale-III was the highest level an RRB cadre could reach. The Bank had taken early initiatives, first in thecountry among RRBs to be precise, to implement the Thorat Committee recommendations / norms in terms of reengineeringadministrative set up by creating Regional Offices to be headed by Scale-IV RRB cadre and categorizationof Branches as per new business norms, in 2008-09 itself. Since the new Appointment and Promotion Rules wereth awaited, senior Scale-III Officers were made to officiate the Scale-IV positions till 18 December 2010, on which 23candidates have been promoted to Scale-IV grade to fill up the following Scale-IV vacancies:Promotions to Officers Senior Management Grade (Scale-IV)1. Regional Managers 102. Heads of Departments at Head Office including three specialized areas viz.,Training Centre, NPAs Management and IT Cell. 103. Scale-IV Branches 3Total 23This initiative is in conformity with the broad policy concept, envisaged by various Committees, of allowing RRBs togovern and manage themselves, rationalizing the number of officials on deputation to RRBs from Sponsor Bank.The Bank has also taken up the exercise of promotions to staff at all levels, as under, as per manpower requirementarrived at based on categorization of Branches and vacancies created by gradual retirements, resignations, naturalwastages etc., as on 31.3.2010.Promotions in other gradesNo.1. Office Attendants (Messenger) to Office Assistants (Clerical) 1142. Office Assistants to Officer Scale-I (Asst. Manager) 2193. Officer Scale-I (Asst. Manager) to Officer Scale-II (Manager) 3054. Officer Scale-II (Manager) to Officer Scale-III (Senior Manager) 78Total 716Pre-promotion training has been imparted with sufficient reading material to all SC/ST staff members, who appearedfor promotion tests in all cadres to make them perform better in the written tests.Nearly 40 % of the total staff (excluding new recruits) has been promoted to next higher grade during the year, highestever in the history of APGVB.All the above initiatives and drive, which were much-awaited well over two decades, by the respective personnel,have enhanced the self-esteem and motivation levels among staff, which, the Bank expects, will translate intocognizable and quantifiable performance results.33we are with you! Annual Report 2010-11RecruitmentsSecond leg of recruitments, after implementation of Thorat Committee norms, have been completed in Group B Grade(Office Assistants) during the year. The process of recruitment of 163 Office Assistants was carried out through IBPS,Mumbai, taking the cumulative figure of new Office Assistants recruited to 313.The Bank has ensured statutory requirement of providing pre-examination training to the SC/ST candidates who

applied for the written test, by availing the services of professional retired Bankers in Hyderabad.The number of candidates enrolling online, for written test, ran into tens of thousands, which created a hugeawareness about the Bank in the general public (non-clientele of the Bank). Certain vernacular news papers havecarried out large and noticeable headlines in their career /employment opportunities, guiding the prospectiveemployees of the Bank about written tests. The Bank has carved a niche with a strong brand image and emerged as aconspicuous institution.As on 31.3.2011, the total number of staff and composition is as under:1. Total Number of Staff 22352. Of whicha) Officersi) Chief Managers (Scale-IV) 23ii) Senior Managers (Scale-III) 93iii) Managers (Scale-II) 481iv) Managers (Scale-I) 701 1298b) Office Assistants 759c) Office Attendants 17822353. No. of SC / ST employees 3484. No. of women staff. 248From 1922 staff members (excluding new recruits), 439 staff members in various cadres, are retiring in ensuing threeyears i.e., by March 2014.Staff Learning CentreThe year 2010-11 has been significant in the history of APGVB on account of one more milestone created by establishingBank's own Staff Learning Centre in Warangal. Some 20 years ago, State Bank of India had an exclusive TrainingInstitute in Khammam, to cater to the training needs of employees of RRBs sponsored by it, which was subsequentlywound up. Since then the training needs of the staff, pre and post amalgamation, are met by availing the trainingfacilities in far off places like BIRD(Lucknow), CAB(Pune), NABARD, BIRD(Mangalore), SBLCs of Sponsor Bank, etc.,34we are with you! Annual Report 2010-11which resulted in inadequate / lack of training to majority staff. Added to this, these training programmes wereprimarily meant for Officers, leaving out the Clerical and Subordinate Staff.Following the encouragement / initiatives in the policy documents, recommendations of the various Committees,constituted by Government of India/NABARD, the Bank had taken a bold step to create its own training infrastructure.There could not have been a more appropriate time to do this, with the continuous recruitments and promotions on thecards, which need training and handholding of staff to take on their new roles.Adoption of Core Banking Solutions in all banking operations from November 2009, has made it imperative forcontinuous training – basics of computers, orientation, re-orientation, enhancing the skills on technology aspects. Allthe staff of the Bank needed the training as CBS is new concept to every one. Accordingly, we have established a fullfledgedStaff Learning Centre at Warangal on 09.07.2010. There is a CBS laboratory at Staff Learning Centre to takecare of the CBS training needs of staff. NPA tracking has been introduced in the Bank in CBS in January 2011 andnecessary basic skills have been imparted to the Field Supervisors to control and contain NPAs.

The Staff Learning Centre has two air conditioned Lecture halls, one for General Sessions and another for Core BankingSolutions (Computer Lab). There are 14 well furnished Hostel Rooms, which can accommodate 30 participants, aLibrary, Dining hall with Kitchen. Entertainment facilities like TV, Indoor games, are taken care of. Medical servicesare also made available by engaging the services of a Physician and a Cardiologist. Round the clock Security is alsoprovided to the Staff Learning Centre by hiring a Security Agency. One Administrative Officer is posted to look after themanagement and maintenance of the Centre.A team of senior officials from within the bank was drawn as Faculty from a group of officials who opted for theassignment. Course contents of the Programmes and methodologies are designed in accordance with the emergingneeds. A module on behavioral sciences is included in every training programme, by outsourcing the faculty to refreshthe participants with regard to their attitude, self-help methods for personal life improvement and career growth.th Since 09 July, 2010, our Staff Learning Centre has conducted 42 programmes up to 31.03.2011 on various subjects andtrained 994 employees/officials of all cadres with a Capacity Utilization of 86%. A system of feed back fromparticipants has been introduced to give their feedback / suggestions, not only on the training programme but also ongeneral issues pertaining to the Bank.An offshoot of the Staff Learning Centre has been the opportunity for the top management of the Bank viz., Chairmanand General Managers to reach out and interact with the Staff members, either at the inaugural or valedictory sessionto share the Bank's priorities and concerns.Vikas PathamAPGVBSLC is developing a capsule programme, on personality development, primarily aimed at sensibly touching thevery basic elements of human nature and perception. This is being so designed with inspirational and motivationalcontents compiled from various sources. Paradigm shift in perceiving the things, removing mental blocks, overcomingfear of failure, continuous learning, need for change etc., are a few aspects that the staff will be exposed to. At theend of the programme, it is expected that the staff will stop, think and retrospect on the basic values. The inspirationfor designing such a programme is derived from State Bank of India's Parivartan programme. However, motive andcontents are different from that of Parivartan. In the next financial year, the Bank is going to ensure that all staffmembers undergo this capsule programme.35we are with you! Annual Report 2010-11HRMSStaff Welfare MeasuresThe amalgamation had posed many challenges in integrating the data on HR front. Till 31.3.2010, the Payment ofSalary and Allowances to staff were being paid at Regional Office level, which was centralised at Head Office level wefApril 2010, by merging the data. This exercise has greatly reduced the man hours required previously for preparationand posting of transactions in respect of payment of salary and posting of instalments to staff loan accounts, leveragingthe CBS technology. The data pertaining to the Staff in respect of their bio-data, promotions, postings etc., have beendigitalized and required reports are generated for MIS purpose.

th In accordance with the Government of India instructions, the Bank has implemented the Wage Revision as per 9Bipartite Settlement in the month of August 2010, with effect from 01.11.2007. The arrears accrued upto August 2010to the extent of Rs 32.00 Crore has been worked out and paid in the month of September 2010. This exercise has beencompleted within a month to comply with the GOI instructions.The Bank has fully provided for the liabilities on account of superannuation viz., Gratuity and Leave Encashment as peractuarial assessment. The additional provisions made during the year are Rs 3.69 Crore and Rs 5.26 Crore respectively.The closing balance in the corpus is Rs 161.92 Crore as on 31st March 2011.The Bank has maintained cordial relations with the Officers Association and Employees Union and working/moving withgreat coordination towards Bank's development. The Management and Staff Association have released a joint appealand jointly conducted several business development meetings with the branch staff at all Regional Offices to motivatethe staff members to improve operating efficiency and productivity. The Structured Meetings with the representativesare held at periodical intervals to sort out any issues, thereby creating excellent working atmosphere. During the year,there was no instance of loss of any man-days on account of strike or agitation or non-cooperation in the Bank.The Bank has maintained cordial relations with the SC/ST Welfare Association and OBC Welfare Association andcomplied with statutory requirements in all aspects of recruitment, promotions etc., and redressed the grievances inamicable and cordial manner.The Bank has held a series of structured Meetings with the representatives of Welfare Associations and Liaison Officersand paved the way for smooth and congenial atmosphere in the Bank.Technology in the Banking Sector is playing a dominant role in driving down costs, building efficiency and working as anenabler in achieving business growth and excellence in customer service. The Bank has achieved a major landmark bycovering all branches and offices under CBS. The entire Bank is on Core Banking Solutions platform and the newbranches are opened with CBS from the beginning. CBS has enabled the Bank in providing a wide array of tech-enabledservices to customers, such as mobile alerts and other services providing cutting edge in terms of service delivery,product innovation and better customer service. These initiatives drive the improvement in customer service, besideswidening business opportunities. While the entire focus was on implementation of CBS in all Branches in the year 2009-10, the current year witnessed significant improvement in stabilization of the CBS broadly in the following areasth Implementation of 9 Bipartite SettlementIndustrial RelationsWelfare of SC/STand OBC employees100% Core Banking Solutions36we are with you! Annual Report 2010-11Continuous training to the operating staff to make them comfortableInternal Controls – cleaning of system suspense generated in intermediary accountsat the time of implementation and during the course of day to day operationsPlugging of income leakage - Purification of dataReconciliation of old Bankers Cheques Accounts and introduction of new oneIntroduction of BCGA(Office Account) and its reconciliationManagement Information SystemNew Initiatives like RTGS, NEFT, SMS Alerts

Customer Service Initiatives such as DD Printing, Pass Book Printing etc.Creation of a post of Chief Manager (IT)Training Support:Internal Controls:IT cell is looking after the Satellite wing of Staff Learning Center. Training is imparted to all staffmembers in CBS simulated environment in Staff learning center. Orientation training on new initiatives has beenconducted to all staff members at regional Office level to ensure complete participation.Training is also imparted to all branch auditors to understand the systems and procedures, risk involved in the changedenvironment to facilitate smooth conduct of Audit and Inspection of branches.Help Desk is being maintained by IT Cell, at Ashoknagar to extend online job support to the staff members.The quality of improvement resulted in this area has been spectacular due to migration of branches/ offices to 100% CBS. The speed and efficiency with which the cleaning operation of various intermediary accountswas done is unmatched in terms of saving cost, manpower and efficiency.· System Suspense: The system suspense Account outstanding as on 31.03.2011 is NIL. It is being monitored daily byIT cell /Help Desk to avoid accumulation of entries. This has been a Zero tolerance area for the bank.· Cash differences: The cash difference between Cash on hand and cash on hand in CGL at branches has beenreconciled and made nil as on 31.3.2011. Special drives have been conducted at Regional Office level to ensuretimely rectification and reconciliation of cash on hand at branches with cash in CGL of the branches as a preventivevigilance mechanism and to prevent breed ground for frauds and malpractices.· CBS Monitoring Registers: All the standard / prescribed registers in CBS environment have been introduced at thebranches for improving overall functioning of branches. Some of the registers are also customized to suit therequirement of branches to comply audit compliances.Focus on Income leakagePurification of data:Zero interest accounts:Zero Balance Accounts:Purification and correction of data in respect of interest rates is completed at all branchesas on 31.3.2011. Staff members are sensitized to data perfection on ongoing basis to generate error-free MIS tofacilitate quality decision making management.Accounts with zero interest rates were segregated branch wise and taken up the matterwith respective branches to ensure against income leakage to improve the profitability of the Bank.Zero balance accounts were taken up with respective branches for the closure ofaccounts to ensure against spillage of income and to prevent frauds.37we are with you! Annual Report 2010-11Reconciliation of old Bankers Cheques (Demand Draft) Account:Branch Clearing General Account (Office Account):Management Information System:Bankers Cheque Accounts maintained by erstwhileRRBs and continued after amalgamation, have been frozen at a cut off date(30th April 2011) and a new system ofissuing Drafts /Bch s on continuous security forms has been introduced ( from 01st May 2011 )BCGA module is introduced for transfer of funds among branches

in place of Inter Office Account which is frozen and being reconciled. Reconciliation of new BCGA is being monitoredby IT cell on daily basis.The Bank's think-tank analysed every piece of information and report generatedunder CBS to facilitate correct financial reporting and to exploit its utility. IT cell has customized all the reports forreview and monitoring of the Bank's performance to enable / draw suitable strategies to improve the business andprofitability of the Bank.New InitiativesFixed Assets:NPA tracking:Assets and Liability Management:Service Tax & TDS:Signature scanning:Bank's own website :Disposal of old hardware:NEFT:Annual Closing:Fixed Assets accounting system / computation of depreciation is carried out by IT cell during the year toimprove the error-free accounting system for statutory audit compliance.NPA tracking module is activated during the year 2010-11 for automatic tracking of NPAs. IT cellcustomized NPAs reports for better NPA management by placing the reports to branches on weekly intervals andhighlights of NPAperformance daily through SMS.Assets and liability management is being stabilized for better management ofliquidity of funds to assess interest risk and operational risk to improve the profitability and operating efficiency of theBank.The Bank has centralized its service tax computation at monthly intervals to avoid the delay inpayment of Tax. The Bank has taken steps to activate Tax deduction at source module from 01.04.2011 to comply withstatutory obligation and bring transparency in accounting system.Scanners were provided to all branches for scanning signatures / photographs of depositors tofacilitate Non-Home transactions and improve customer service and operating efficiency to avoid frauds.The Bank has introduced new portal of the Bank for disseminating the information about theBank to the general people and staff to build brand image. All the circulars and other internal developments are alsoplaced on web site for information of the staff only. Suggestions are also invited from customer as well as from staff forimproving the functioning of the Bank.A Circular has been issued to all Branches to dispose off unused and old Hardware by way ofdonating it to schools and SHG groups if the computer and its peripherals are fit to be used, and otherwise unused onein open auction to be conducted at respective regional office to keep the premises neat and tidy.NEFT facility is being introduced for improving customer service and easy flow of funds from Govt. Departmentand other agencies which go long way in providing cutting edge image of the Bank in terms of service delivery..Annual Closing returns / statement of the bank has been generated from the system for the first timein CBS environment during the year 2010-11 and the entire process of audit and finalization of accounts is completed in

record 19 days, thus enable the branches and staff to concentrate on business development and customer service.38we are with you! Annual Report 2010-11Customer Service Initiatives:SMS Alerts-Pass Book Printers:Demand Draft / Bankers Cheques Printers:Non Home Transaction Facility:Toll Free Number :The Bank has activated SMS alerts for timely information to the customers about the transactionseffected in their account and also about the changes in the interest rate of loan / deposit products of the Bank.This has improved the image of the Bank and would go a long way in building trust and widening the customer base.Pass Book Printers were supplied to all branches and to improve the customer service and alsoguard against malpractices in noting the entries in passbooks.The Bank has introduced printing of Demand Drafts/ Bankers Chequesat all branches to improve remittance business and also to facilitate automatic reconciliation of entries .Non Home transaction facility is extended to the customers Rs 25,000/ per day asadd-on service to the customers.The Bank has introduced a Toll free telephone No. 1800 425 7900 for receiving the suggestionsand complaints from the customers and general public. This has helped the bank in getting the direct feedbackfrom the public about the functioning of the Bank.Expansion of OutreachInformation & Communication Technology - Smart Card ProjectFinancial Inclusion Technology Fund (FITF)While the concept of RRBs coupled with nationalization of Banks itself was one of the biggest initiatives of Governmentof India towards inclusive banking and inclusive growth, the Bank's latest IT-enabled-initiatives date back to 2006 whenthe Government of Andhra Pradesh mooted payment of Social Security Pension and NREGS Payment through SmartCards under EBT (Electronic Benefit Transfer) towards broader goal of Total Financial Inclusion.In collaboration with State Government and IDRBT, the Bank implemented ICT Solutions from 2006 for GOAPsponsored-Electronic Benefits Transfer viz., payment of Social Security Pension and Payment of NREGS Wages. Theframework adopted was to create banking relationship with a vast section of un-banked rural poor, adopting (a) SmartCard technology and (b) Business Correspondent model. The Bank had appointed M/s A Little World, Mumbai asTechnology Service Provider with M/s Zero Mass Foundation, Mumbai as Business Correspondent. The women membersof Self Help Groups (SHGs) are deployed as Customer Service Providers (CSPs) by the Business Correspondent.Smart Card project was first implemented in one Mandal in Warangal District as a pilot and later upscaled to fourdistricts viz., Warangal, Medak and Mahabubnagar and to Khammam (under 'One-District-One-Bank' model). Ourtarget is to cover 1193 Grama Panchayats in Warangal, Medak, Mahabubnagar and entire 770 GPs in Khammam districtand issue Smart Cards to 17,47,659 beneficiaries by opening No Frills Accounts. As on 31.3.2011, 65% of the target hasbeen achieved by bringing 11,30,185 beneficiaries into banking fold and issuing Smart Cards.

The Project Monitoring and Implementation Committee (PMIC) with representatives from NABARD, IDRBT, Stategovernment and Technology Service Provider under Chairmanship of Bank's Chairman, monitors and reviews theprogress at periodical intervals and sorts out operational issues and support for effective implementation.The Bank has submitted the above Financial Inclusion Project to NABARD for sanction of grant assistance under FITF.The total financial outlay of the project is Rs.4.54 crores for opening and issuance of cards to about Rs. 15.70 Lakhsaccounts, which was sanctioned with a grant assistance of Rs.3.40 crores (75% of total project cost). The duration of39we are with you! Annual Report 2010-11th the project is 3 years from the date of sanction i.e. 15 May, 2009. The Bank has also submitted a proposal for sanctionof grant assistance for implementation of Financial Inclusion Project in Khammam district with a total outlay of Rs.4.83crores. The project is under consideration of NABARD.With the main objective of providing Training to the Customer Service Providers (CSPs) deployed in the districts ofWarangal, Medak and Mahabubnagar for capacity building and enriching / equipping the subject knowledge of Bankingand Financial Products to be extended to the customers at the villages through Bio Metric enabled technology, the Bankhas submitted a project to NABARD for sanction of grant assistance The NABARD has sanctioned a grant assistance ofRs.23.81 Lakhs (80% of the project cost) under Financial Inclusion Fund.Financial Inclusion Fund (FIF)Two steps forward in implementation of Smart Card ProjectProviding Banking Services to un-banked villages having population of more than 2000 by March, 2012Integration of Bank's data lying in Technology Provider's Server with our Bank's CBS database has been initiated duringthe year in coordination with respective technology providers viz., M/s A Little World and M/s C-Edge Technologies.Modalities have been worked out as to the architecture of the data transmission among Bank's Branches/RegionalOffices, Smart Card Server with ALW and CBS Server with C-Edge Technologies. Once this arrangement becomesoperational, the transactions through Smart Cards using ICT Solutions will reflect in our Bank's Central Database withM/s C-Edge Technologies on batch transaction processing mode.The other step forward is introduction of delivery of main stream banking services like Savings Bank, RD Accounts etc.,leveraging the branchless banking infrastructure created, furthering the cause of Total Financial Inclusion. TheTechnology Provider M/s ALW is on the job and the Bank is hopeful of achieving this feat in the next financial year.As per the recommendations of the High Level Committee to review the Lead Bank Scheme,unbanked villages having population of more than 2000 have been allocated to various banks forproviding of banking services by opening of banking outlets or through any of the various forms of ICTbasedmodels, including through BCs, in these villages by March 2012. Accordingly, 869 villages havingpopulation of above 2000, have been allotted to the Bank. The district wise allocation of villages and status ofappointing BCs and their outlets as on 31.03.2011 is as under.

SNo District No. of villages allotted No. of BCs appointed No. of outlets opened1 Mahabubnagar 135 1 1152 Medak 93 1 873 Warangal 86 1 654 Khammam 126 1 1115 Nalgonda 119 - -6 Srikakulam 118 - -7 Vizianagaram 98 - -8 Visakhapatnam 94 - -TOTAL 869 37840we are with you! Annual Report 2010-11Action Plan of the BankUse of Business Facilitators(BFs) and Business Correspondents (BCs)Financial InclusionBranch ExpansionAsset Quality - Management of Non Performing Assets (NPAs)a) For the purpose of implementation of A P Smart Card Project in 4 districts viz., Khammam, Warangal, Medak andMahabubnagar, the Bank has already appointed Business Correspondent and been implementing Financial InclusionProject by leveraging ICT solution. The Bank has already opened outlets in 1940 villages. Of the total 1940 villages,378 villages are having population of more than 2000. Apart from EBT, Bank is planning to roll out our Banking productsin these villages shortly.b) The Bank is organizing training programmes to the Customer Service Providers (CSPs) to enrich their job knowledgeabout our Bank products, for which a project is sanctioned by NABARD with grant assistance under FIF.c) The Bank is in the process of identifying suitable BCs for the remaining 491 villages in 4 districts to implementFinancial Inclusion Project during 2011-12.In tune with the RBI guidelines, the Bank has launched a scheme for financial inclusion by extension of Banking Servicesthrough BCs and BFs. To start with, the Bank is going with the use of services of individual Business Facilitators only foridentified services such as SB Account opening, RD Account opening, Current Account opening, TDR/STDR, (min.maturity 1 year), Recovery in NPA a/cs / Written off accounts / AUCA, Cross Selling of Mutual Fund and Insuranceproducts, Demand Loans against specified security, Demand Loans against Gold ornaments. The Bank is givingpublicity by displaying the advertisement in the Notice Board of the Branch and concerned Gram Panchayat Office.The Bank has appointed about 50 Business Facilitators during the year and would commence business operations in thenext financial year.In line with the country's inclusive growth framework, the Bank's initiatives in this direction aim at financialempowerment and participation of rural masses. With this objective, the Bank has extended credit facility undergeneral credit cards, credit linkage for Self Help Groups, enhancing outreach through Business Correspondents andextending technology driven Smart Cards. During 2010-11, the Bank mobilized 531901 No frills accounts and reached acumulative level of 1130185 Lakhs since inception.To disseminate information to rural people about banking providers and advanced technology, the Bank has formed 65Farmers Clubs during the year, taking the total to 793 as on 31.3.2011.

In 2007, in one of the meetings to review the performance of RRBs, the Honourable Finance Minister set a target ofopening 2000 Branches by all RRBs in the country by March 2011. As part of this target, the Bank has opened 15Branches during the year 2010-11 in unbanked rural areas, taking the total branches opened from 2007 to 2011 to 70and our Bank's reach increased to 553. All the new Branches were opened with CBS Technology from the day one.A strong disciplined banking system is important for the rural economy to flourish. During the year, the Bank hasfocused on the basics of the Bank and increasing NPAs is one of the major concerns of the Bank. NPAs usually reflect theasset quality of the Banks, while in case of RRBs, environmental factors such as climatic and political statementsinfluences recovery discipline. CBS environment, automatic system throwing of NPAs on daily basis, had significantimpact on the volume of NPAs during the year. While the IRAC norms compliance is better this year due to automated41we are with you! Annual Report 2010-11system driven NPA classification process, it also resulted in incidence of huge technical NPAs, i.e., performing assetswhich were classified by CBS as NPAs due to incomplete or wrong data entry in the system.Apart from the technical correction of NPAs, to supplement the efforts of the operating staff at branch level, specialrecovery teams were formed to reach out to the borrowers and counsel them to regularize their loans and re-establishtheir banking relationship. This has yielded very good results and the Bank could recover Rs 3527.93 Lakhs from theNPAs. Wherever warranted, the Bank had initiated legal action under SARFAESI Act against the high value willfuldefaulters in the Non Farm Sector. During the year, 222 accounts amounting to Rs 1036 Lakhs, have been taken upunder SARFARESI Act and the recovery under this process was quite encouraging. The Bank could recover Rs.370 lakhsas against the recovery of Rs.142 lakhs during 2010-11.The recovery from AUCA and Written Off Accounts during the year, indicate the degree of special and serious effortsmade by the operating staff as well as special teams. An amount of Rs.735.62 lakhs has been recovered from the lossassets written off and parked in AUCA, 285% higher than that of previous year i.e., Rs 267.48 Lakhs. This is one of themilestone performances of the Bank during 2010-11.After careful consideration of the burden of carrying along the doubtful and loss assets, for which 100% provision hasbeen made, the Bank has adopted a Policy to write off these loans with an outstanding of upto Rs 1.00 Lakh, which weresanctioned under Govt. Sponsored Schemes. The Bank has exercised due care and diligence in framing this policy.The vigorous campaign launched by the Bank to regularize the bad loans, has led to write off comparatively loweramount of Rs 762.23 Lakhs as against Rs 2298.16 Lakhs written off during the year 2009-10. The following table showsthe reduction of NPAs by means of cash recovery and write off:Cleansing of Bank's Balance Sheet – Write Off PolicyYear Total Reduction By Write Off By Cash Recovery2010-11 42.90 7.62 35.272009-10 31.90 22.98 8.92(Rs in Crores)Compromise Policy and One Time SettlementThe Bank has also adopted alternative recovery methods to reduce and recover bad loans. Performance under

Compromise Policy and One Time Settlement Schemes are furnished below:(Rs in Lakhs)Scheme No of Accounts Amount Due Amount recoveredOTS 2177 625.88 494.51Compromises 243 200.69 146.9342we are with you! Annual Report 2010-11Creation of a dedicated Department for management & Monitoring of NPAsInternal Control System – Inspection and AuditAudit Committee of the BoardManagement Audit by Sponsor BankDuring the year, the Bank has created a dedicated department headed by a Chief Manager for close monitoring andfollow up with Regional Offices and Branches.The Bank has constantly been upgrading the Audit System to conform to the industry standards. The year 2010-11 canbe called “An year of Audit” in the Bank. The scope of Audit has been enlarged, as never before, to encompass everyunit of administration, involving financial and/or non financial decisions, and create a precedence to carry forwardthis to ensure soundness of the Banking practices in the Bank. The Department has carried out its operations with fairand without prejudice and helped strengthen the systems and procedures.The Risk Focused Internal Audit Report System, as suggested by State Bank of India, has been implemented in the Bankfrom July 2009.During the year, the Audit Department has audited 409 Branches, 10 Regional Offices, IT Cell, Staff Learning Centre andAccounts Department at Head Office. The Department has also carried out Income Audit, KYC Audit, Securities Audit(at HO quarterly), Leave Audit (quarterly), Salary Audit and submitted reports.Income Audit has been carried out in 110 branches, KYC Audit in 119 Branches and Spot Audits on 10 Branches. Besides,Regional Offices have conducted Snap Audits on 348 Branches during the year.The Bank's management have earmarked significant portion of their executive time to study the Audit Reports and visitthe branches wherever warranted basing on the Audit outcome and initiate corrective measures.There has been significant improvement in the Audit rating of the Branches. As on 31.3.2011, the number of“Excellent”, “Good” and “Satisfactorily Run” branches stood at 229, 126 and 16 respectively, without any branch beingrated “Unsatisfactorily run”. 63 Branches upgraded their rating from “Good” to “Excellent”, and one branch from“Unsatisfactorily run” to “Good” and 266 Branches retained its previous rating. There were slippages also in AuditRating – 26 Branches have been downgraded from “Excellent” to “Good” and 14 Branches from “Good” to“Satisfactory”.The Audit Committee, constituted with one SBI-nominee-director as Chairman and nominee directors of RBI andNABARD as members has met during Board Meetings and reviewed the audit function, quality of the audit system andtransparency and accuracy that the audit system has carried. The Audit Committee has suggested evaluating Self AuditCulture among the Branches, special monitoring of the downgraded branches. The Committee has also suggestedmeasures to strengthen audit system and also placing before the Board in respect of branches downgrading to“Satisfactorily Run” rating continuously for three audits.During the year 2010-11, the Bank has been subjected to the Management Audit by the Sponsor Bank, basically aimed at

critical evaluation of the policies and methods adopted by the management in the administration of the Bank. TheBank has taken all measures to comply with the Audit Report and submitted final compliance report to the SponsorBank.43we are with you! Annual Report 2010-11Right to Information ActVigilanceThe set up instituted by the Bank to comply with the provisions of Right to Information Act, has projected an excellentface of the Bank, in responding to the applications received under RTI Act and providing information as required underthe provisions and exhibited the level of transparency with which the Bank has been functioning. Every unit of theBank is RTI Act compliant. At the Branch level, the Branch Manager has been designated as Assistant Public InformationOfficer while the Regional Manager concerned is the Central Public Information Officer. At Head Office level, the ChiefManager (Board) is the Assistant Public Information Officer and the Chief Manager (Audit & Inspection) is the CentralPublic Information Officer. The General Manager (Operations) has been designated as Appellate Authority in the Bank,under RTI Act.During the year, the Bank has received 24 applications and 6 appeals and disposed off all applications and appealswithin the stipulated time frame.With the advent of technology in banking operations, the element of risk is more pronounced, with the data andinformation flow across various levels of operations, being prone to mischief and posing potential threats. The Bankhas stepped up vigilance mechanism to safeguard the interest of the operating personnel as well as the Bank. In thisbackdrop, the Bank has revised guidelines for conduct of several Preventive Vigilance Measures like Surprise visits,Surprise Checks to review the level of adherence to the laid down systems and procedures. Every forum is being usedto impress upon the operating staff to be aware of the dire necessity of maintenance of password secrecy in CBS andbeing vigilant about the nature of transactions. The Staff Learning Centre has embedded a module in its curriculum ofevery training programme on the risk elements in technology driven banking operations and the ways and means ofpreventing the potential frauds in CBS.The Bank has brought out a booklet on “Preventive Vigilance Measures” for ready reference of all staff members,enlightening them on preventive vigilance measures, to create a sense of awareness to work in CBS environment and toprotect the bank/system from perpetration of frauds and malpractices.In order to remind about the dangers of frauds, misconduct and other corrupt practices and to generate greaterst awareness among all sections of the staff, 1 November is being observed as “Fraud Prevention Day and KYCObservance Day and Pledge has been administered to all the staff.A Vigilance Manual, customised to the Bank's needs, covering the entire gamut of disciplinary process has beenprepared with the help of Bank's Legal Advisor and released for the benefit of operating staff who deal with thevigilance matters.Frauds Monitoring Committee of the Board met three times and reviewed the vigilance and disciplinary cases.The Bank had formulated a complaint handling policy to redress the grievances of customers and improve quality of

customer service. The Bank has also introduced Whistle Blower Scheme with an objective of providing an avenue forraising concerns related to frauds, corruption or any other misconduct and reassurance that those who disclose suchinformation are protected from retaliation for such disclosure.Complaints44we are with you! Annual Report 2010-11Regional Managers monitor the redressal of the complaints received from the branches under their control. Thecomplaints received at Head Office are dealt with at Head Office level. The Bank has disposed off all 45 complaintsreceived during the year.The Bank has received 26 complaints received through Banking Ombudsman and disposed off all 26 complaintsincluding 2 complaints pending as on 31.3.2010.The Bank has conducted its affairs in such a manner as to safeguard the interests of all the stake holders i.e.shareholders, bank customers, regulatory authority, society at large, employees etc. The Bank has adhered to allregulatory requirements and put in place effective monitoring system and control mechanism and the day to dayadministration of the bank. Committee approach has been adopted in all financial and non-financial decisions takenby the Bank in order to derive the collective wisdom of all participants in decision making as well as maintaining thetransparency, through Head Office Management Committee and Head Office Credit Committee I & II at Head Office andRegional Office Credit Committee at Regional Office level.The Board of the Bank is constituted by (a) Chairman of the Bank (b) two non official directors appointed byGovernment of India (c) one nominee director each from Reserve Bank of India and NABARD (d) two nominee directorsfrom Sponsor Bank (e) two nominee directors from Government of Andhra Pradesh, headed by the Chairman of theBank.The Board of Directors has met six times during the year on 19.04.2010, 10.06.2010, 20.08.2010, 21.10.2010,31.12.2010, 04.03.2011. The Board has undergone some changes in the composition on account of completion of theirtenure / transfer of officials.Shri T Hanumantha Rao, who was Chairman of the Bank at the beginning of the financial year, has been repatriated toSponsor Bank in September 2010 and Shri K.Lakshmana Rao, Deputy General Manager, SBI, took over reigns of the Bankfrom September 2010.Similarly Shri V. William Raju, nominee director of RBI on the Bank's Board has been replaced by Shri K.N. Singh Sardar,Asst. General Manager, RBI, Hyderabad during the year.The State Government nominee Shri N. Sridhar, IAS, District Magistrate & Collector, Warangal has also been replaced bythe new incumbent Collector Shri Rahul Bojja, IAS, District Collector, Warangal.The Bank places on record the service of Shri T. Hanumantha Rao, Deputy General Manager, SBI, under whosestewardship as Chairman, the Bank has achieved crucial milestones such as migration of 100% branches to CBSPlatform, opening of new Branches, expansion of outreach through Smart Card Technology in addition to businessgrowth. He has also represented the APGVB, as member, in many high-level Committees constituted byRBI/NABARD/Government of India, bringing recognition to the Bank at national level. The Bank also places on record

the commendable services rendered by Shri V. William Raju, DGM, RBI and Shri N. Sridhar, IAS.Banking Ombudsman SchemeCorporate GovernanceBoard45we are with you! Annual Report 2010-11Attendance of Directors at Board Meetings during 2010-11Name of the Director No. of Meetings held No. of Meetings attended1. Shri K. Lakshmana Rao (27.9.2010) 3 3Shri T. Hanumantha Rao (24.9.2007) 3 32. Shri B. Raja Rao (1.2.2008) 6 63. Shri B. Radhakrishna Murthy (2.6.2009) 6 34. Shri K.N. Singh Sardar (1.7.2010) 4 4Shri V. William Raju (9.9.2008) 1 15. Shri D. Hari (21.8.2009) 6 66. Shri Manoj Khattar (12.4.2010) 6 27. Shri K.T. Ajit (19.12.2008) 6 48. Smt Vasudha Mishra, IAS (10.9.08) 6 Nil9. Shri Rahul Bojja, IAS (20.12.2010) 2 1Shri N. Sridhar, IAS (20.6.2009) 4 Nil46we are with you! Annual Report 2010-11

Management Discussion and AnalysisLike any other financial institution, the performance of RRBs depends on many factors. Apart from overall economicand financial conditions, the vagaries of nature which affect agriculture and rural areas, affect RRBs also to a greatextent.The Indian economy projected a positive outlook with a growth of 8.5% in 2010-11 as against 8% in 2009-10. The growthhas been broad-based in all three segments of the economy viz., agriculture, manufacturing and services which grewby 5.4%, 8.1% and 9.6% respectively, with agriculture, which put up dismal performance during 2009-10 at 0.4% growth,strongly bounced back to the growth path during the year. Manufacturing and Services Sector have continued to growat 8.1% and 9.6% respectively. Indian economy is set on recovery path, although food inflation, higher commodityprices and volatility in global commodity markets have been major causes of concern.Inflation, which is known to be the Tax on poor man, continues to be higher than expected. The Reserve Bank of India(RBI) hiked policy rates to control the rising inflation and maintain growth. Interest rates systematically went upthroughout 2010 and 2011 but inflation too continued to rise unabatedly.The country witnessed a “normal” Southwest monsoon (June-September) in 2010 after a year of deficient rainfall, tothe extent of 23 per cent in 2009.Good monsoon is crucial for many economic developments. Monsoon rains replenish reservoirs and increase groundwaterlevels, allowing better irrigation and higher generation of hydropower. About 40% of India's arable land hasirrigation facilities. The rest depends on the monsoon rains. Higher rainfall levels can also reduce demand for diesel,used to pump water from wells for irrigation when rainfall is scant. Scant rainfall increases dependency oninternational markets for foodstuff as it did in 2009. Sufficient rain during monsoon lifts domestic demand, as higherfarm output increases the incomes of rural people, who account for about two-thirds of India's 1.2 billion population.

Higher demand for goods and services can boost economic growth. Also, inflation could ease because a better supply ofagricultural produce would lead to lower prices.Our Bank's Service Area received good rainfall during the year, creating favourable conditions for agriculture.Indian economy - OverviewSouthwest Monsoon47District Actual Rainfall Normal Rainfall % of deviation1 Srikakulam 846.0 705.7 202 Vizianagaram 894.1 692.7 293 Visakhapatnam 914.2 712.6 284 Mahabubnagar 639.0 446.6 435 Warangal 1068.1 799.0 346 Khammam 1157.9 890.3 307 Nalgonda 599.2 561.8 78 Medak 753.1 675.8 11State Average 808.1 624.1 29The quantum of rain fall is more than the normal rainfall in all the 8 Districts under our area of operation.we are with you! Annual Report 2010-11AgricultureBanking SectorFavorable monsoon resulted in higher food production. As per the second advance estimates of production for 2010-11released by Ministry of Agriculture on February 9, 2011, production of foodgrains is estimated at 232.07 million tonnes,oilseeds at 27.85 million tonnes, sugarcane at 336.70 million tonnes and cotton at 33.93 million bales of 170 kg each.These production estimates are at higher levels compared to last year primarily due to significant improvement in theproductivity in almost all the crops.The Banking Sector during the year operated in a situation of tightening liquidity and steep borrowing costs. Bankcredit growth has slowed down to 21% during the year as against previous year's growth of 23%. According to the latestdata released by Reserve Bank of India on March 25, 2011, banks have lent over Rs 40.5 lakh crore vis-à-vis Rs 33.3 lakhcrore as on March 26, 2010.The growth in lending by Banks was lower than RBI projections at over Rs 53.5 lakh crore, which is 15% higher than overRs 46.3 lakh crore a year ago. In absolute terms, however, the incremental deposits of Rs 7.16 lakh crore raised duringthe year is close to the Rs 7.19 lakh crore of incremental credit.48Bank's performance under MoU with Sponsor BankS.No Parameter ActualsMar.10 Growth levels Mar 20110 over -mentMar 11 Mar11 Mar101 Deposits 3807.29 951.82 4759.11 4794.72 987.43 103.742 Advances 3869.75 1122.22 4991.97 4894.43 1024.68 91.303 CD Ratio 101.64 3.25 104.89 102.00 0.36 -----4 NPAs 88.26 -24.64 63.62 196.03 107.77 308.12NPAs % 2.31% -1.04% 1.27% 4.01% 1.69% -----5 Net Profit 102.84 154.26 154.26 108.13 5.16 70.01MOU MOU Actuals Growth of achieve(Rupees in Cr)Limitations and ChallengesSince their inception, RRBs have taken deep roots and have become a sort of inseparable part of the rural creditstructure in India. So is the Bank. It would be unthinkable to visualize rural credit delivery system without RRBs.

Various Committees, including historical Narasimham Committee, have gone into various aspects of RRBs andsuggested measures, on account of which RRBs have reached the present stage -we are with you! Annual Report 2010-11Resources mobilizationInterest RatesCreditThe Bank faces stiff competition from other commercial banks in resources mobilization apparently because of theadvantage of technology driven banking. The people, even in rural areas, who have surplus funds to save by means ofBank deposits, are not the poorest. The children from rural middle class families in Andhra Pradesh are very active instudies and pursuing higher studies in different parts of the country and some abroad. The youngsters from rural partsof the State, are all over the State and Country, either studying or working keeping their families back home in villages(75% of India's engineering graduates come from the four southern states of Andhra Pradesh, Karnataka, Tamil Nadu andKerala). This segment of the rural population, expects all modern facilities like ATMs, online Banking, NEFT/RTGS etc.Banks which offer these facilities are automatic choice for them. Our Bank is losing this segment of young customers.Apart from rural branches, the Bank has around 125 urban and semi urban branches. This is one of the reasons the Bankcould not increase the customer base substantially and achieve broad-based growth in deposits, resulting in highdependence on bulk and volatile institutional deposits. There is heavy dependence on refinance from Sponsor Bankand NABARD - Rs 1954 Crore, which works out to 40% of the total loans and advances.In the absence of level-playing field, to compete with the competitors, the Bank always resorts to offer interest rateson deposits, a fraction higher to lure the depositors.When the Policy rates are hiked, the commercial Banks, apart from hiking their interest rates on deposits, pass on theburden to their borrowers by increasing interest rate on existing and new loans. The RRBs have a very small lee-way fora similar approach, for the interest rate on crop loans, which forms major portion of the credit portfolio, is not withinthe scope of the Bank. Every increase in deposits rate translated into cutting down net interest income. We haveborrowed funds from SBI and NABARD to the tune of Rs 1954 cr and as interest rates were increased by the lenders onsuch funds , our Bank is facing higher interest burden.Consistent and rapid growth in advances vis-à-vis invariably negative-growth or no-growth in deposits in the first 1-2quarters, is one of the characteristics of the Bank. Features like high exposure to Crop loans and Self Help Groups,limited scope for diversification of advances and comparatively poor asset quality with mounting NPAs in the backdropof vitiated repayment climate, add to the vulnerability of the credit portfolio. There is limited scope for competingwith other Banks in capturing high value advances in the backdrop of low resource base and uncompetitive interestrates.HR IssuesObjectives of RRBsIntegration of Human Resources after amalgamation is one of the challenges the Bank is facing. Around 40% of the staffhaving put up more than 30 years of service in erstwhile RRBs, is on the verge of retirement and adopting to technical

skills and adjusting to the computerized environment is a formidable task for them. We have recruited 163 Employeesfrom the market in 2010-11 and infused young blood into the organization.The objective of RRBs was to develop rural economy by providing credit facilities for the development of agriculture,trade, commerce, industry and other productive activities in the rural areas, particularly to small and marginalfarmers, agricultural laborers, artisans and small entrepreneurs.49we are with you! Annual Report 2010-11Initiatives taken by the BankConducting deposit mobilization campaigns to focus attention on building a wide and sustainable deposit base.Launching of new deposit products with attractive features and competitive interest rates.Conducting Grama Sabhas and recovery camps to educate the borrowers about the benefits of prompt repaymentand improve the recovery position of the bank.Imparting necessary training to all members of staff to improve their skills and knowledge levels to give them theconfidence to work more efficiently in the new computerized environment.Taking up with the Sponsor Bank for making available facilities like ATMs and NEFT.Entering into MOU with NABARD for co-financing of high value advances.Started financial inclusion in a few unbanked villages as per the directions of RBI.Undertaking project ambience on a large scale to improve the image of the bank and improve the customerconvenience.Focusing on cross selling to improve the non-fund-based income and profitability of the BankUndertaking the recruitment exercise on a massive scale to replenish the dwindling man power resources of thebank.Launching 'Vikas Patham' programme for all employees to change their attitude and mindset (on the lines of'Parivartan' Programme of State Bank of India).50This is a sacred task. Poorest of the poor live in rural areas. Poverty, poor quality of education, unemployment, underdevelopmentare a few associated characteristics. The objectives, if fulfilled effectively by RRBs, would serve one ofthe most important challenges our country is facing i.e., the need for matching the urban development with ruraldevelopment. The Bank, charged with the above mandate, is fully involved in extending credit to rural people, as perthe State Credit Plans. However, the Policies, the State and the System have to support the RRBs in doing its ' sacredbanking' activities. The Bank should sustain lending activity by healthy repayment climate and recycling of funds. Dr.KC Chakravarthi Committee's recommendation of increasing authorized Share Capital to Rs 500 Crore is a welcomepolicy initiative which would strengthen the RRBs.we are with you! Annual Report 2010-11Bank's Targets for the year 2011-12(Rs in Crore)51Sl.No Particulars Actual2010-11 Growth for Levelthe year 2011-12 os 2011-121 Deposits: 4,794.72 1,198.68 5,993.40% of Growth 25%2 Borrowings : 1,954.64 745.36 2,700.00

% of Growth 77.29% 38.13 72.393 Outstanding Advances: 4,894.43 1,223.61 6,118.04% of Growth 25%4 Loans issued During the Year :a) Target Group 2977.99 3061.74 3061.74b) Non-Target Group 849.19 765.44 765.445 KCCs (20% increase both in 580846 116169 697015No. of a/cs and amount) (Rs.1705.14) (Rs.341.03) (Rs.2046.17)6 C.D. Ratio (%) 102.08% 102.08%7 Investmentsa) SLR 999.70 287.68 1287.38a) Non-SLR 1147.58 448.77 1596.35Total : 2147.28 736.45 2883.738 Profit for the year 108.13 54.06 162.199 Non Performing Assets 196.28 -74.02 122.26Budgeted Budgetedwe are with you! Annual Report 2010-1152

Future outlookThe Bank has certain priorities cut out for it to build a better APGVB – within the scope of the Bank:a) Strengthening of Systems and Procedures and internal control systems particularly in the wake of CBS enabledbanking including updating the scanned signatures and photographs of all customers at all branches, to safeguardagainst possible operational risk.b) Train and reorient all the staff on Core Banking Solutions and educate them on the necessity of day-to-daychecking of CBS reports with real time transactions, to safeguard against possible human or system errors.c) Refresh the outlook and perceptions of the staff through 'Vikas Patham', a Behavioral Science Programme,developed by the Bank's Staff Learning Centre, to help creating a healthy working atmosphere. The integrationissues post amalgamation, if any, will dilute to a great extent with this orientation of staff. Developingleadership abilities will help staff not only in realizing their self esteem but also contribute to the growth of theBank.d) Mould the new recruits into professional bankers by imparting skills and core competencies and align them to theBank's objectives and priorities. The strategy is to develop them into high performance individuals.e) Leveraging CBS technology to offer value added services like ATMs, NEFT/RTGS, with the support of SponsorBank, to increase operational efficiency and productivity.f) Exploring Solar Energy resource for powering the Branches to overcome electricity shortage / failure and ensureuninterrupted branch functioning.g) Reduce the high NPAlevels in the Bank by sustained follow-up.h) Increase the inflow of Deposits into the Bank, maintain credit quality and bring down the dependence onrefinance from NABARD & SBI.i) Reduce the high CD ratio of 102 % by having continuous focus on mobilizing savings from the public.j) Accelerate business growth and create healthy bottom line for the Bank.k) Purchase of land for construction of Bank's own building for Head Office, Staff Learning Centre.We have so many successes in 2010-11. CBS set up is more or less stabilised. Registered Rs 108 Cr Net Profit during theYear. Established a Staff Learning Centre of our own at Warangal. Staff have been motivated to increase Deposits and

reduce NPAs.Nothing succeeds like success. APGVB would become a stronger Organisation by the day to serve its mandate andsurvive against all odds and come up with flying colours in the years to come.we are with you! Annual Report 2010-11AcknowledgementsThe Board of Directors of the Bank places on record its sincere gratitude for the continued trust, confidence, supportpatronage and encouragement received from its customers who have stood with the Bank all through.The Board of Directors places on record and express their gratitude for the guidance and cooperation received from theSponsor Bank, Government of India, Government of Andhra Pradesh, Reserve Bank of India, NABARD, other FinancialInstitutions and Banks for their unflinching and valuable support to the Bank from time to time.Further the Board conveys its gratitude to Shri Rakesh Sharma, Chief General Manager, SBI, Hyderabad LHO,Shri Ashwini Mehra, General Manager (NW-I), SBI, Hyderabad LHO, Shri T.S. Krishnaswamy, General Manager (NW-II);Shri S. Krithivasan, DGM & CDO, SBI, Hyderabad LHO, Shri G. Vijay Kumar, DGM, RRBs, State Bank of India, CorporateCentre, Mumbai, Shri C. Lakhsmi Pathi, AGM (RRBs), SBI, Hyderabad LHO, for their guidance and continued managerialsupport.The Board conveys its gratitude to Shri A.S. Rao, Regional Director, Reserve Bank of India, Regional Office, Hyderabad,Shri M. Sebastian, Banking Ombudsman, Andhra Pradesh, Shri M. Sanjaya, General Manager, RPCD, Reserve Bank ofIndia, Hyderabad for their support.The Board also conveys their gratitude to Shri P. Mohanaiah, Chief General Manager, National Bank for Agriculture andRural Development, Regional Office, Hyderabad, and General Managers Shri E.V. Murray, Shri D.N. Magar andShri V. Maruthi Rao.The Board also expresses sincere thanks to Sri. R. Subramanyam, Principal Secretary, Rural DevelopmentMs G. Jayalakshmi, IAS, Commissioner, Rural Development, Government of Andhra Pradesh and her predecessorShri S.S. Rawat, IAS, Sri Rajashekar, IAS, CEO, SERP and all the District Collectors, Project Directors of DRDA, IKP,DWMA, SC/ST BC Minorities and Housing Corporations of Srikakulam, Viziangaram, Visakhapatnam, Khammam,Nalgonda, Warangal, Mahabubnagar and Medak for their support and encouragement.The Board expresses its sincere thanks to organisations like Singareni Colleries Ltd., Pollution control board, AP.MARKFED, APIIDC, Endowments dept., Adovates Mutually Aided Co-op society ltd. Hyd. etc. for their excellent supportto us in the form of Bulk deposits. Their investments with us are enabling us to serve the farmers in a better manner.The Board extends its heartfelt gratitude to M/s CPJ Associates, the Central Statutory Auditors of the Bank for theircooperation in completing the Audit of the Bank's Financial Year 2010-11 in time.The Board also expresses its gratitude to all Public Relations Officers, Press and media for their cooperation in givingwide publicity for the Bank. The Board also thank the Officers Association, Employees Union and SC/ST/OBC WelfareAssociations for their constructive role played in overall development of the Bank.Last but not the least, the Board places on record its deep appreciations for the excellent performance, sense ofinvolvement, ownership and dedicated services rendered by each and every staff member in achieving the sustained

business growth and profit.For and on behalf of Board of Directors ofAndhra Pradesh Grameena Vikas BankChairman(K. Lakshmana Rao)53we are with you! Annual Report 2010-11we are with you!

Stand up, be bold, be strong. Take the whole responsibilityon your own shoulders and know that you are the creatorof your own destiny -- Swami Vivekananda"Progress is impossible without change and those whocannot change their minds cannot change anything.- George Bernard ShawYou can gently shake the world.-- Mahatma GandhiEveryone thinks of changing the world, but no one thinksof changing himself. -- "Leo Tolstoy"It's not the mountain we conquer-but ourselves."- Sir Edmund HillaryAnnual Report 2010-11

FinancialsAuditors ReportBalance SheetProfit & Loss AccountSchedules & NotesC.P.J. & AssociatesChartered AccountantsToThe President of India1. We have audited the attached Balance Sheet of ANDHRA PRADESH GRAMEENA VIKAS BANK, Head Office -st Warangal, as at 31 March, 2011 and also the Profit and Loss Account and the cash flow statement annexedthereto for the year ended on that date in which are incorporated the returns of 28 branches audited by us and511 Branches audited by branch auditors. The Branches audited by us and those audited by other auditors havebeen selected by the Bank in accordance with the guidelines issued to the bank by the NABARD. These financialstatements are the responsibility of the Bank's management. Our responsibility is to express an opinion onthese financial statements based on our audit.2. We have conducted our audit in accordance with auditing standards generally accepted in India. Thesestandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatements. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by the management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion.

3. The Balance Sheet and the Profit & Loss Account have been drawn up in Form “A” and “B” respectively of theThird Schedule to the Banking Regulation Act, 1949 and they give the information as required to be given byvirtue of the provisions of the Regional Rural Banks Act, 1976.4. On the basis of the audit as indicated in paragraphs 1 & 2 above and subject to limitation of disclosure andsubject to the following.(a) Accounting policy 2 of Schedule No. 17 regarding recognition of certain items of income/expenditure onreceipt/payment basis, which is not in conformity with the Accounting Standard – 9 on “Revenue Recognition”issued by the Institute of Chartered Accountants of India, the effect of which on the accounts could not beascertained.(b) The Bank is not having the practice of recognizing deferred tax liability or deferred tax asset in the books ofaccounts as required by the Accounting Standard 22 on “Accounting for taxes on Income” issued by TheInstitute of Chartered Accountants of India. The effect of this on the accounts is not material and significant.5. We further report that :(a) we have obtained all the information, which to the best of our Knowledge and belief, were necessary for thepurpose of our audit and have found them to be satisfactory.57

Auditors Reportwe are with you! Annual Report 2010-11(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 purpose ofour audit.6. In our opinion, the Balance Sheet, Profit and Loss Account comply with the applicable accounting standards,except as stated in paragraph 4 above.7. In our opinion, as shown by books of bank, and to the best of our information and according to the explanationsgiven to us :(a) the Balance Sheet, read with the notes there on is a full and fair Balance Sheet containing all the necessaryst particulars, is properly drawn up so as exhibit a true and fair view of state of affairs of the Bank as at 31 March,2011 in conformity with accounting principles generally accepted in India;(b) the Profit and Loss Account, read with the notes there on shows a true balance of Profit, in conformity withaccounting principles generally accepted in India, for the year covered by the account; and(c) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.For C.P.J. & AssociatesChartered AccountantsSd/-(Chandraprakash Jain)PartnerMembership No.24716Place : Warangalth Date : 18 April 201158we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas Bank

Head Office: WarangalBalance Sheet As On 31st March 2011Place: WarangalDate: 18-04-2011As per our report even dateFor C.P.J. & Associates For Andhra Pradesh Grameena Vikas BankChartered AccountantsFirm Reg No 8180S(` in '000)Chandra Prakash Jain K.Solomon K. Lakshmana RaoPartner General Manager (Operations) ChairmanMembership No. 24716Particulars Sch. 31.3.2011 31.03.2010Capital 1-A 5,00,00 5,00,00Share Capital Deposit 1-B 89,08,50 89,08,50Reserves And Surplus 2 419,01,43 310,88,50Deposits 3 4794,72,22 3804,51,25Borrowings 4 1954,64,16 1599,97,77Other Liabilities And Provisions 5 383,67,86 313,52,02TOTAL 7646,14,17 6122,98,04Cash and Balances with RBI 6 378,28,54 302,72,58Balances with Banks and Money atCall & Short Notice 7 1259,05,78 1030,36,44Investments 8 1032,69,83 814,95,71Advances 9 4834,53,57 3822,84,73Fixed Assets 10 19,13,96 20,24,30Other Assets 11 122,42,49 131,84,28TOTAL 7646,14,17 6122,98,04Contingent Liabilities 12 33,56,77 16,55,86CAPITAL AND LIABILITIESASSETSSignificant Accounting Policies 17Disclosures and Notes on Accounts 1859we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: Warangalst Profit & Loss for the year ended 31 March 2011Particulars Sch As on 31.03.2011 As on 31.03.2010Interest Earned 13 642,98,69 577,39,41Other Income 14 75,07,52 44,52,26TOTAL 718,06,21 621,91,67Interest Expended 15 357,29,35 325,99,88Operating Expenses 16 155,12,77 135,72,51Provisions and Contingencies 49,15,91 22,87,14Provisions no longer required written back NIL -10,93,55TOTAL 561,58,03 473,65,98156,48,18 148,25,69Less: Provision for Taxation- Current tax-Income Tax 48,35,26 45,41,62Profit after Tax 108,12,92 102,84,07Less Income tax of previous year NIL 23,36Provision for Salary Arrears NIL 12,73,60Net Profit for the Year 108,12,92 89,87,11Brought Forward Profit 233,04,74 161,15,05TOTAL 341,17,66 251,02,16Transfer to the Statutory Reserves 21,62,58 17,97,42Profit(+) /Loss(-) Carried Over to Balance Sheet 319,55,08 233,04,74TOTAL 341,17,66 251,02,16Significant Accounting Policies 17Disclosures and Notes on Account 18I. INCOMEII. EXPENDITURE

Profit before taxIV. APPROPRIATIONSPlace: WarangalDate: 18-04-2011As per our report even dateFor C.P.J. & Associates For Andhra Pradesh Grameena Vikas BankChartered AccountantsFirm Reg No 8180SChandra Prakash Jain K.Solomon K. Lakshmana RaoPartner General Manager (Operations) ChairmanMembership No. 2471660(` in '000)we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSchedules forming part of Balance Sheet as on 31st March 2011SCHEDULE - 1 A - CAPITALSCHEDULE – 1 BSHARE CAPITAL DEPOSITParticulars As on 31.03.2011 As on 31.03.2010NIL NIL(Fully owned by Central Government)NIL NILa. The amount brought in by Banks by way of startupCapital as prescribed by Reserve Bank of India shouldbe shown under this headb. Amount of deposits kept with Reserve Bank of India NIL NILsection II (2) of the B. R. Act, 1949.Authorised Capital 5,00,00 5,00,00(5,00,000 Equity shares of Rs.100/- each)Issued Capital(5,00,000 Equity Shares Rs.100/-) 5,00,00 5,00,00Subscribed Capital 5,00,00 5,00,00(5,00,000 Equity Shares Rs.100/-)Called Up Capital 5,00,00 5,00,00(5,00,000 Equity Shares Rs.100/-)Less: Calls Un Paid NIL NILAdd: Forfeited Shares NIL NILTOTAL 5,00,00 5,00,00I. For Nationalized Banks CapitalII. For banks incorporated out side IndiaIII. For other banksParticulars As on 31.03.2011 As on 31.03.2010a. Govt., of India 44,54,25 44,54,25b. State Bank of India 31,17,98 31,17,98c. Govt., of Andhra Pradesh 13,36,27 13,36,27TOTAL 89,08,50 89,08,50Share Capital Deposit from(` in '000)(` in '000)61we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 2RESERVES AND SURPLUSParticulars As on 31.03.2011 As on 31.03.2010Opening Balance 63,51,07 45,53,65Additions During the Year 21,62,59 17,97,42Deductions During the Year NIL NILTOTAL 85,13,66 63,51,07Opening Balance 1,20 1,20

Additions During the Year NIL NILDeductions During the Year NIL NILTOTAL 1,20 1,20Opening Balance NIL NILAdditions During the Year NIL NILDeductions During the Year NIL NILTOTAL NIL NILOpening Balance 14,31,49 14,31,49Additions During the Year NIL NILDeductions During the Year NIL NILTOTAL 14,31,49 14,31,49319,55,08 233,04,74TOTAL 419,01,43 310,88,50I. Statutory ReserveII. Capital ReserveIII. Share PremiumIV. Revenue and Other ReservesV. Balance In Profit & Loss Account62(` in '000)we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 3DEPOSITSSCHEDULE – 4BORROWINGSParticulars As on 31.03.2011 As on 31.03.2010A. I. Demand Depositsi) From Banks NIL NILii) From Others 179,38,79 129,80,13II. Savings Bank Deposits 2212,19,36 1567,67,96III. Term Depositsi) From Banks NIL NILii) From Others 2403,14,07 2107,03,16TOTAL 4794,72,22 3804,51,25B. i) Deposits of Branches In India 4794,72,22 3804,51,25ii) Deposits of Branches Out Side India NIL NILTOTAL 4794,72,22 3804,51,25Particulars As on 31.03.2011 As on 31.03.2010i) Reserve Bank Of India NIL NILii) Other Banks (SBI) 718,65,30 707,71,07iii) Other Institutions and Agencies 1235,98,86 892,26,70(NABARD & NHB)NIL NILTOTAL 1954,64,16 1599,97,77I. Borrowings In IndiaII. Borrowings Out Side India63(` in '000)(` in '000)we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 5OTHER LIABILITIES AND PROVISIONSSCHEDULE – 6CASH AND BALANCE WITH RESERVE BANK OF INDIA (` in 1000)

Particulars As on 31.03.2011 As on 31.03.2010I. Bills Payable/Bankers Cheque 36,98,31 39,63,41II. Inter Office Adjustments (Net) 57,46,80 9,00,81III. Interest Accrued 148,22,91 143,62,39

IV. General Provision on Standard Assets 13,68,88 10,66,50V. Provision on Investments in Mutual Funds 8,00 NILVI. Provision towards restructuring of SME 89,65 89,65And Housing LoansVII. Othersa. Audit Fee Provision 31,00 32,00b. Interest on borrowings 4,22,82 82,26c. Other Liabilities 13,94,94 14,89,19d. Bonus NIL 7,92VIII. Other Provisions 56,74,58 25,19,03IX Income Tax Provision for 2009-10 2,74,71 45,41,62X Income Tax provision for current year 48,35,26 NILXI Provision for salaries NIL 22,97,24TOTAL 383,67,86 313,52,02Particulars As on 31.03.2011 As on 31.03.2010I. Cash in Hand(Including Foreign Currency Notes) 93,36,42 79,79,34II. Balances With Reserve Bank of Indiai) In Current Accounts 284,92,12 222,93,24ii) In Other Accounts NIL NILTOTAL 378,28,54 302,72,58(` in '000)64we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 7BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICEParticulars As on 31.03.2011 As on 31.03.2010a) In Current Accounts 144,47,27 183,15,30b) In Other Deposit Accounts 1114,58,51 847,21,14a) With Banks NIL NILb) With Other Institutions NIL NILTOTAL 1259,05,78 1030,36,44i) In Current Accounts NIL NILii) In Other Deposit Accounts NIL NILiii) Money At Call And Short Notice NIL NILTOTAL NIL NILGRAND TOTAL 1259,05,78 1030,36,44I. In Indiai) Balances With Banksii) Money At Call And Short NoticeII. Out Side India65(` in '000)we are with you! Annual Report 2010-11SCHEDULE – 8INVESTMENTSAndhra Pradesh Grameena Vikas BankHead Office: WarangalParticulars As on 31.03.2011 As on 31.03.2010I. Investments In Indiai. Government Securities 999,69,83 758,90,71ii. Other Approved Securities 18,00,00 46,05,00iii. Shares - Long Term NIL NILiv. Debentures and Bonds NIL NILv. Subsidiaries And / or Joint Ventures NIL NILvi. Others 15,00,00 10,00,00TOTAL 1032,69,83 814,95,71II. Investments Out Side Indiai) Government Securities (IncludingLocal Authorities) NIL NIL

ii) Subsidiaries And / or Joint Ventures NIL NILiii) Other Investments (To Be Specified) NIL NILTOTAL NIL NILGRAND TOTAL 1032,69,83 814,95,7166(` in '000)we are with you! Annual Report 2010-11SCHEDULE – 9ADVANCESAndhra Pradesh Grameena Vikas BankHead Office: WarangalParticulars As on 31.03.2011 As on 31.03.20101. Bills Purchased and Discounted 4,98 4,78,402. Cash Credits, Over Drafts and 1742,64,14 1194,02,23Loans Repayable onDemand3. Term Loans 3091,84,45 2624,04,10TOTAL 4834,53,57 3822,84,731.Secured by Tangible Assets 4412,00,49 3426,35,662.Covered by Bank/Govt. Guarantees NIL NIL3.Un Secured 422,53,08 396,49,07TOTAL 4834,53,57 3822,84,731. Priority Sector 3960,48,24 3024,10,202.Public Sector NIL NIL3.Banks NIL NIL4. Others 874,05,33 798,74,53TOTAL 4834,53,57 3822,84,731.Due from Banks NIL NIL2.Due from Others NIL NILTOTAL NIL NILTOTAL (C. I &II) 4834,53,57 3822,84,73A.B.C.I Advances in IndiaII. Advances Out Side India67(` in '000)we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 10FIXED ASSETSSCHEDULE – 11OTHER ASSETSParticulars As on 31.03.2011 As on 31.03.2010At Cost as on 31st March of the Preceding Year 3,72 3,72Additions During the Year NIL NILDeductions During the Year NIL NILTOTAL 3,72 3,72At Cost as on 31st March of the Preceding Year 39,09,85 24,37,90Additions During the Year 6,19,79 14,71,95Deductions During the Year NIL NILDepreciation to date 26,19,40 18,89,27TOTAL 19,10,24 20,20,58TOTAL OF (I+II) 19,13,96 20,24,30I. LandII.Other Fixed Assets (including Furniture And FixturesParticulars As on 31.03.2011 As on 31.03.20101. Inter Office Adjustments (Net) NIL NIL2. Interest Accrued 57,66,59 94,27,233. Tax Paid On Advance Tax Liability 32,78,27 19,78,274. Tax deducted at source during the year 44,10 25,98

5. Tax deducted at source during earlier years 4,60,85 4,60,856. Stationery 32,94 42,407. Stamps 3,60 3,028 Commission to be received from SBI Life 10,95 NIL9. Telephone Deposit 1,64 4910 Suspense 13,39 62,6911. 2% Subvention receivable from GOI/ RBI/NABARD 10,39,37 8,34,5512. PMIRP 2006 receivable from GOI NIL 15,1813. Prepaid expenses - Insurance 8,31 37,0714. Income Tax paid against disputed demand 13,64,00 NIL15 Others 2,18,48 2,96,55TOTAL 122,42,49 131,84,2868(` in '000)we are with you! Annual Report 2010-11SCHEDULE – 12CONTINGENT LIABILITIESAndhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 13INTEREST EARNEDParticulars As on 31.03.2011 As on 31.03.2010Interest/Discount On Advances/Bills 515,75,59 428,33,06Interest On Investments 82,16,03 64,27,69Interest On Balances With ReserveBank Of India And Other Inter Bank Funds NIL NILOthers 45,07,07 84,78,66TOTAL 642,98,69 577,39,41(` in 1000)Particulars As on 31.03.2011 As on 31.03.20101. Claims Against The Bank notAcknowledged as Debt 27,27,29 11,69,392. Liability For Partly Paid Investments NIL NIL3. Liability On Account of Outstanding NIL NILForward Exchange Contracts4. Guarantees Given On Behalf On ConstituentsA.) In India 5,01,78 3,85,19B) Out Side India NIL NIL5. Acceptances, Endorsements And Other Obligations NIL NIL6. Other Items For Which Bank Is Contingently Liable(Unclaimed Bankers Cheques Treated As Income) 1,27,70 1,01,28TOTAL 33,56,77 16,55,8669(` in '000)we are with you! Annual Report 2010-11SCHEDULE – 14OTHER INCOMEAndhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 15INTEREST EXPENDEDParticulars As on 31.03.2011 As on 31.03.2010Commission, exchange and brokerage 67,71,70 39,21,97Profit on sale of investments nil 44,12Profit on revaluation of investments nil nilProfit on sale of lands, buildings and other assets nil nilProfit on exchange transactions nil nilIncome earned by way of dividend etc., nil nilfrom subsidiaries / companies and /or jointventures abroad/in indiaMiscellaneous income 7,35,82 4,86,17Total 75,07,52 44,52,26

Particulars As on 31.03.2011 As on 31.03.2010Interest On Deposits 227,46,95 212,62,77Interest On Reserve Bank Of 124,08,95 107,73,35India/Inter Bank BorrowingsOthers 5,73,45 5,63,76TOTAL 357,29,35 325,99,8870(` in '000)(` in '000)we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 16OPERATING EXPENSES71Particulars As on 31.03.2011 As on 31.03.2010Salary Payments and Provisions to Employees 100,51,86 86,16,64Rent, Taxes, Lighting and fuel 6,80,05 5,06,10Printing and Stationery 1,59,32 1,56,08Advertisement and Publicity 17,55 8,15Director's Fee, Allowances And Exp. 2,36 3,62Depreciation On Banks Property 7,30,13 5,26,72Auditor's Fee And Expenses 34,73 28,89Legal Charges 8,59 10,64Telephones charges 98,97 1,14,67Postage (-)34,50 9,75Repairs And Maintenance 18,02 24,84Insurance 2,92,49 3,23,41Travelling & Halting expenses 3,85,50 3,49,52Leave Fare Concession 93,79 78,88Leave Encashment Fund 5,26,34 2,96,41Medical Expenses 1,54,15 1,29,57Gratuity Contribution Fund 3,68,54 5,61,93AMC for Software and Hardware 8,54,86 4,03,23Amortisation provided on Govt. Securities 3,74,28 6,63,76Books and Periodicals 37,90 29,28Computerisation 27,30 48,57Vehicle and Fuel 1,50,89 89,86Smart Card Expenses (-)79,51 NILBonus (-)4,29 41Entertainment 41,98 41,31Other Expenses(Sundries) 5,21,47 5,50,27TOTAL 155,12,77 135,72,51(` in '000)we are with you! Annual Report 2010-11

Andhra Pradesh Grameena Vikas BankHead Office: WarangalSCHEDULE – 17SIGNIFICANT ACCOUNTING POLICIESA) ACCOUNTING POLICIESi) Standard Assets:1. General :2. Revenue Recognition:3. Advances:a. The accompanying financial statements have been prepared on the historical cost basis and confirm tothe statutory provisions and prevailing practices.b. Accounting policies not specifically mentioned otherwise are consistent and in consonance with theaccounting practices regularly followed by the Bank.a. Interest on performing Assets has been recognized on accrual basis and on Non-performing Assets on

realization basis as per RBI guidelines.b. Interest on investments and deposits has been recognized on accrual basis.c. Commission, Exchange and Brokerage are normally recognized on the date of receipt althoughincome may relate to transaction period extending beyond the accounting period.d. Locker rent is recognized on realization basis.e. Interest on overdue term deposits is accounted for on renewal.f. All other income/expenditure have been recognized on accrual basis except few items like electricityand telephone charges, rentals, property taxes etc. which are accounted for on cash basis.Provisions on advances have been arrived at in accordance with RBI guidelines/directives as under,a) All advances have been classified under four categories i.e., Standard Assets, Sub-Standard Assets,Doubtful Assets and Loss Assets.b) Provisions on Advances are made as under,General Provision for Standard Assets at the following rates;a) Direct advances to agricultural and SME sectors at 0.25%b) Commercial real estate sector at @ 1%c All other advances not included in (a) & (b) above, at 0.40%72we are with you! Annual Report 2010-11ii4. Fixed Assets :5. Investments :6. Staff Benefits:7. Segment Reportingi) Sub-Standard Assets:iii) Doubtful Assets I & IIv) Doubtful Assets III:v) Loss Assetsvi)a. Gratuityb. Leave Encashment10% of the outstanding Advances for secured portion and 20% of unsecured portion of Advances.@ 20% or 30% of the secured portion based on the number of years the account remained as doubtfulasset and @ 100% of unsecured portion of the adjusted outstandings after netting retainable amount ofDICGC claim wherever received.As per the revised guidelines on doubtful III category accounts existing as on 31.03.2011, 100% has beenprovided.@ 100% of the adjusted outstandings after netting retainable amount of DICGC claim wherever received.An additional provision of 1% has been provided on an average rural advances.a) Fixed Assets have been accounted for on historical cost basis.b) Depreciation has been provided for the Written Down Value method at the rates specified in Income TaxRules, on all assets except computers.c) In respect of Computers, depreciation has been provided on Straight Line Method (SLM) @ 33.33%p.a. as per RBI guidelines.a) Investments are valued at cost or market value, whichever is lower as at the close of the year.b) Investments held in Government Securities are classified under “Held to Maturity” as per RBIguidelines.As per guidance note issued by ICAI the provision is made on the basis of valuation obtained from ActuarialSociety of India.

As per guidance note issued by ICAI the provision is made on the basis of valuation obtained from ActuarialSociety of India.The bank operates solely in the banking sector industry including investments, not liable to deferent risksand rewards. Consequently, bank has not recognized any business segments or geographical segmentsand hence no disclosure is made.73we are with you! Annual Report 2010-118. Income Tax Expense:9. Net Profit / LossIncome Tax is calculated in accordance with relevant Tax regulations applicable to the Bank. Deferred Taxasset / deferred tax liability is not recognized, since these are not material and significant.The Net Profit/Loss disclosed in the Profit & Loss account is after makinga. Provision on Non-Performing Assets andb. Other usual and necessary provisions.The accounts of the bank have been drawn up in accordance with the revised Format III Schedule ofBanking Regulation Act, 1949 to the extent practicable.SCHEDULE – 18DISCLOSURES & NOTES ON ACCOUNTSI. Disclosures as per norms for RRBs1. CAPITALS No Particulars Current year Previous yeari) CRAR(%) 11.85 11.22ii) CRAR - Tier I Capital (%) 10.60 10.29iii) CRAR - Tier II Capital (%) 1.25 0.93iv) Percentage of Shareholding of theA Government of India 50.00 50.00B State Government 15.00 15.00C Sponsor Bank 35.00 35.002. INVESTMENTSS No Particulars Current year Previous year1 Value of Investmentsi) Gross value of Investments 103269.83 81495.71ii) Provisions for Depreciation 8.00 0.00iii) Net value of Investments 103261.83 81495.712 Movement of provisions held towardsdepreciation on investmentsi) Opening Balance 0.00 1093.55ii) Add: Provisions made during the year 8.00 0.00iii) Less: Write off / Write back of excessprovisions during the year 0.00 1093.55iv) Closing Balance 8.00 0.00(` in Lakhs)74we are with you! Annual Report 2010-113. REPO TRANSACTIONItem Minimum Maximum Daily Average As on 31stoutstanding outstanding outstanding March, 2011during the year during the year during the yearSecurities Soldunder Repos Nil Nil Nil NilSecurities purchasedunder reverse repos Nil Nil Nil Nil4. Non-SLR Investment Portfolio(i) Issuer composition of Non SLR Investments(ii) Non-performing Non-SLR investmentsParticulars AmountOpening balance 0.00Additions during the year since 1st April 0.00

Reductions during the above period 0.00Closing Balance 0.00Total provisions held 0.00(` in Lakhs)(` in Lakhs)(` in Lakhs)S No. Issuer Amount Extent of Extent of Extent of Extent ofPrivate below investment unrated unlistedplacement grade securities securities securitiesi) PSUs 1800.00 0.00 0.00 0.00 0.00ii) FIs - - - - -iii) Banks - - - - -iv) Private Corporate - - - - -v) Others 1492.00 0.00 0.00 0.00 0.00vi) Provisions heldtowards depreciation 8.00 0.00 0.00 0.00 0.00Total 3300.00 0.00 0.00 0.00 0.0075we are with you! Annual Report 2010-111.Asset Quality5.1 Non-Performing AssetsS No. Particulars Current year(2010-11) (2009-10)i Net NPAs to Net Advances (%) 2.82 1.08ii Movement of NPAs (Gross)(a) Opening balance 8826 8818(b) Additions during the year 15092 3198(c) Reductions during the year 4290 3190(d) Closing balance 19628 8826iii Movement of Net NPAs(a) Opening balance 4139 4283(b) Additons during the year 12414 2612(c) Reductions during the year 2914 2756(d) Closing balance 13639 4139iv Movement of provisions for NPAs(Excluding provisions on standard assets)(a) Opening balance 4029 4013(b) Provisions made during the year 1450 2240(c) Write-off / Write-back of excess provisions 718 2224(d) Closing balance 4761 4029Previous year5.2 Details of Loan Assets subject to RestructuringS No. Particulars Current year(2010-11) (2009-10)i Total amount of loan assets subject to |restructuring, rescheduling, renegotiation 26560 Nilii The amount of Standard assets subjected torestructuring, rescheduling, renegotiation 26560 Niliii The amount of Sub-Standard assets subjectedto restructuring, rescheduling, renegotiation Nil Niliv The amount of Doubtful assets subjected torestructuring, rescheduling, renegotiation Nil NilNote (i) = (ii) + (iii) + (iv)Previous year(` in Lakhs)(` in Lakhs)76we are with you! Annual Report 2010-115.3 Details of financial assets sold to Securitization (SC) / Reconstruction Company (RC)for Assets ReconstructionS No. Particulars Current yeari No. of accounts Nil Nilii Aggregate value (net of provisions) of accountssold to SC/RC Nil Nil

iii Aggregate consideration Nil Niliv Additional consideration realized in respect ofaccounts transferred in earlier years Nil Nilv Aggregate gain / loss over net book value Nil NilPrevious year5.4 Details on non-performing financial assets purchased / soldA. Details of non-performing financial assets purchased:S No. Particulars Current year1 (a) No. of accounts / purchased during the year Nil Nil(b) Aggregate outstanding Nil Nil2 (a) Of these, number of account restructuredduring the year Nil Nil(b) Aggregate outstanding Nil- Nil-Previous yearB. Details of non-performing financial assets sold.S No. Particulars Current year1 No. of accounts sold Nil Nil2 Aggregate outstanding Nil Nil3 Aggregate consideration received Nil NilPrevious year5.5 Provisions on Standard AssetsS No. Particulars Current year1 Provisions towards Standard Assets 1368.87 1066.00Previous year(` in Lakhs)(` in Lakhs)(` in Lakhs)(` in Lakhs)77we are with you! Annual Report 2010-116. Business RatiosS No. Particulars Current yeari Interest income as a percentage to Working Funds 7.99 9.43ii Non-Interest income as a percentage to Working Funds 0.93 0.72iii Operating profit as a percentage to Working Funds 2.56 1.68iv Returns on Assets (%) 8.92 10.15v Business (Deposits plus advances) per employee 436 343.11vi Profit per employee 4.86 4.62Previous year(` in Lakhs)(` in Lakhs)7. Asset Liability Management – Maturity pattern of certain terms of Assets and LiabilitiesParticulars 1 to 15 to 29 days Over 3 Over 6 Over 1 Over 3 Over 5 Total14 28 to 3 months months year year yearsdays days months and upto and upto and upto and upto6 months 1 year 3 years 5 yearsDeposits 222.80 63.72 758.14 172.48 359.84 3061.06 90.31 66.37 4794.72Advances 242.15 726.46 968.61 339.02 484.31 1017.05 435.87 621.06 4834.53Investments 1.85 0.82 26.45 36.20 1217.34 118.40 3.23 743.00 2147.29Borrowings 0.00 0.00 0.00 366.77 1071.02 475.17 36.80 4.88 1954.64Foreign 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00currencyassetsForeign 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00currencyliabilities(` in Crores)78we are with you! Annual Report 2010-118. Exposures – Exposure to Real Estate Sector9. Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the bank:The bank had not exceeded the single borrower limit, group borrower limit fixed by the Board

10. Miscellaneous – Amount of provisions made for Income tax during the year.Particulars Current Year Previous yearProvision for Income Tax 4835.26 4541.6211. Disclosure of Penalties imposed by RBI12. Additional Disclosures as per Accounting Standards applicable to the BankThe bank has maintained CRR and SLR as per RBI Act 1934 and Banking Regulation Act 1949 and notdefaulted during the financial year under reporta) Related parties where control / significant influence exists or with whom transaction have taken placeduring the year.12.1 Related party disclosure(` in Lakhs)S No. Particulars Current yearI Residential Mortgages above `.20.00 lakhs lending fully secured 2163 823by mortgages on residential property that is or will be occupied bythe borrower or that is rented (individual housing loan upto `.20 lakhmay be shown separately)Up to `. 20.00 lakhs 18352 10812Lending secured by mortgages on commercial real estates 911 Nil(office buildings, retail space, multi-purpose commercial premises,multi-family residential buildings, multi-tenanted commercialpremises, industrial or warehouse space, hotels, land acquisition,development and construction, etc.) Exposurewould also includenon-fund based (NFB) limits.Nil Nilsecuritized exposuresa. Residential Nil Nilb. Commercial Real Estate Nil NilNil NilFund-based and non-fund based exposures on National Housing Nil NilBank (NHB) and Housing Finance Companies (HFCs)Previous yeara Direct exposureIi Commercial Real EstateIii Investments in Mortgage Backed Securities (MBS) and otherb) Indirect Exposure79we are with you! Annual Report 2010-11Sponsor Bank, their Subsidiaries and Associates:State Bank of IndiaSBI Life Insurance Company LimitedSBI Fund Management Private LimitedState Bank of HyderabadKey Management PersonnelShri. K.Lakshmana Rao, ChairmanShri. N. Ramesh, General Manager (Credit)Shri. K.Solomon, General Manager (Operations)Shri. P.A.S.Sudhakar Rao, General Manager (HR)Shri. M.Krishna Rao, General Manager (IT)12.2 Particulars of related party accounts transactionsThe following is the summary of significant related party transactions:For the year ended For the year ended31st March 2011 31st March 2010Refinance received from State Bank of India 70999.99 65000.00Interest paid on refinance to SBI 5303.08 3724.47Investments made with:SBI - in the form of STDRs 111458.52 84721.12SBI Fund Management Private Limited Nil NilInterest received from SBI 4507.07 8477.08Contributions to Gratuity Fund with SBI LifeInsurance Company Limited 368.54 561.93Contributions to Group Leave EncashmentPolicy with SBI Life Insurance Company Limited 526.34 296.40

Current Account transactions with SBI 8495.46 3846.2512.3 Particulars of Managerial Remuneration: (Amount in `)For the year ended For the year ended31st March 2011 31st March 2010CHAIRMAN 1365387 731607GENERAL MANAGER (CREDIT) 1179327 693185GENERAL MANAGER (OPERATIONS) 1177985 696967GENERAL MANAGER (H R) 1180441 733199GENERAL MANAGER (I T) 1176974 707980(` in Lakhs)80we are with you! Annual Report 2010-1112.4 Prior Period Items.12.5 Impairment of AssetsThere were no material prior period items of Income or Expenditure during the year.The Bank obtains Certificate from the branches stating the physical list of Assets from each branch. Based onsuch information necessary entries for write off are accounted for the impaired assets.13. Provisions and ContingenciesS No. Particulars Current yearA Opening balance in the floating provisions account 2519 2519B The quantum of floating provision made in the accounting year 3155 NIlC Amount of Draw down made during the accounting year NIl Nili. Agricultural Debt Waiver and Debt Relief Scheme2008 -Residual balances written off NIL Nilii. Appropriated towards additional provisions requiredfor the year as per prudential norms NIL Niliii Provision written back to profit and Loss account NIl Niliv. Draw down total NIL NilD Closing balance in the floating Provisions account 5674 2519Previous year14. Disclosure of complaints:A. Customer Complaints:S No Particulars Nosa No. of complaints pending at the beginning of the year 2b No. of complaints received during the year 45c No. of complaints redressed during the year 42d No. of complaints pending at the end of the year 5B. Complaints disposed by the Banking Ombudsman:S No Particulars Nosa No. of complaints pending at the beginning of the year 2b No. of complaints received by the Banking Ombudsman during the year 26c No. of complaints disposed off during the year 28d No. of complaints pending at the end of the year Nil(` in Lakhs)81we are with you! Annual Report 2010-11

II.NOTES ON ACCOUNTS1) Fixed Assets2) Staff Benefits:3) Share Capital Deposit4) Reconciliation5) Value of Stationery6) TaxesLand has been gifted to the bank by certain donors for the construction of the Bank's premises. The Bank hadincurred only registration charges and development charges on such lands and the same is accounted as cost ofland. However, market value of such lands is not considered for the purpose of financial statements.During the year an amount of `. 369 Lakhs is debited to Profit & Loss account towards Gratuity.During the year an amount of `. 526 Lakhs is debited to Profit & Loss account towardsLeave Encashment.

The amount received from Government of India, Sponsor Bank (State Bank of India) and Government of AndhraPradesh towards cleansing of Balance Sheet under Restructuring of RRBs (phase II ) has been shown underShare Capital Deposits in balance sheet . The total Share Capital Deposit is `.89,08,50,490/-.Inter Office account as on 31.05.2010 has been closed after reconciling and responding all the pending entries.BCGA has been introduced in place of Inter office account with effect from 01.06.2010 and the same has beenreconciled up to 31.03.2011.Reconciliation of Banker's cheque account for the quarter ended December 2010 is under progressThe value of Stationery and Stamps of `. 36.54 Lakhs has been adopted as certified by the management.a) As per Section 22 of The Regional Rural Banks act, 1976, “Regional Rural Bank is to be deemed to aCooperative Society for the purpose of the Income Tax Act, 1961".b) The Income Tax assessment of the Bank for Assessment year 2007-08 has been completed and thedepartment has raised a demand of ` 9,58,45,269/ disallowing expenditure of `27,95,02,982/ claimed undervarious heads of account. The Bank had remitted `. 4.79 crores and got stay for payment of the balancedemand . On appeal before The Commissioner of Income tax (Appeals), the Bank had got relief to the extentof `. 24,77,02,273/- out of the disallowance made earlier by the Incometax Department. The Bank iscontemplating to file appeal before the I.T. Tribunal for the remaining part not allowed by the Commissioner ofIncometax (appeals). Meanwhile, as per the directions of the Commissioner of Income tax, the I.T. departmenta. Gratuityb. Leave Encashment82we are with you! Annual Report 2010-11had reassessed the Income of assessment year 2007-08, disallowing the provision of `. 15,23,19,692/- madeon standard assets and raised an additional demand of ` 6,19,91,101/- The Bank had remitted ` 3.10 croresand got stay for payment of the remaining additional demand . The bank has filed an appeal before TheCommissioner of Income tax (Appeals) against this reassessment order. No provision is made since thematter is subjudice.c) The Income Tax assessment of the Bank for Assessment year 2008-09 has been completed and thedepartment has raised a demand of ` 11,48,92,740/- disallowing expenditure of ` 26,41,79,904/ claimedunder various heads of account. The Bank had remitted ` 5.75 crores and got stay for payment of the balancedemand. The bank has filed an appeal before The Commissioner of Income tax (Appeals) against thisassessment order. No provision is made since the matter is subjudice.Investments in Government Securities includes premium paid on such investments. The investments (includingpremium) in Government Securities is treated as 'Held to Maturity' category as per RBI norms, the premium is beingamortized over the period remaining to maturity. The amount amortized to P&L account for the year 2010-11 was` 374 Lakhs and disclosed under the head “Operating Expenses” – Schedule 16 of Profit & Loss Account.st Balances in Unpaid Bankers' Cheque account outstanding for more than three years as on 31 March 2011,

amounting to ` 127.70 lakhs have been credited to P& L account.7) Investments in Government Securities8) The Bankers' Cheques outstanding for more than three yearsst 9) Classification of Assets as on 31 March, 2011(`. In lakhs)CLASSIFICATION GROSSADVANCES ADVANCESSTANDARD ASSETS 469815 469815SUB STANDARD ASSETS 15577 12082BAD & DOUBTFUL ASSETS 4051 1556TOTAL 489443 483453ADD: INCA 1229ADD: PROVISION ON SUB STANDARD AND DOUBTFUL ASSETS 4761TOTAL GROSS ADVANCES 489443NETThe Net advances are Net of provisions and INCA except provision on Standard Assets.83we are with you! Annual Report 2010-11As per our report even datePlace: WarangalDate: 18-04-2011For C.P.J. & AssociatesChartered AccountantsFirm Reg No 8180SFor Andhra Pradesh Grameena Vikas BankChandra Prakash Jain K.Solomon K. Lakshmana RaoPartner General Manager (Operations) ChairmanMembership No. 24716B. Raja Rao, Director B. Radha Krishna Murthy, Director K N. Singh Sardar, DirectorD. Hari, Director K.T. Ajit, Director Manoj Khattar, DirectorRahul Bojja, IAS, Director Mrs Vasudha Mishra, IAS, Director K. Lakshmana Rao, Chairman10) Receivable from Govt. of India under ADWDRS, 2008An amount of ` 12.87 lakhs is receivable from Govt. of India under Agricultural Debt Waiver and Debt ReliefScheme, 2008 out of ` 478 Crores claimed from the Govt. and credited to farmers accounts.11) There are 12 fraud cases outstanding as on 31.03.2011 involving an amount of ` 1,37,00,267/ .Out of which anamount of ` 5,00,873/- has been recovered. Accordingly, a provision of ` 1,31,99,394/- is required as on31.03.2011.Since the provisions available is ` 1,25,31,241/- ,an additional provision of ` 6,68,153/- has beenprovided during the year.12) The figures mentioned in Balance Sheet, Profit & Loss Account and Schedules 1 to 16 have been rounded off tothe nearest thousand rupees.13) Previous year's figures have been regrouped/ classified/recast wherever necessary84we are with you! Annual Report 2010-1185

EVENTS & HAPPENINGSAn SHG woman sharing her experience with the Chairman Shri K. Lakshmana Rao,during SHG loan mela organized by our Bhudanpochampalli Branch.Felicitation to Smt L. Dhanwanthi, ZP Chairperson, Warangal on theInternational Womens' Day on 8.3.2011 at our Head Office.Shri R. Rama Rao, R M.Mahabubnagar receiving the Best Banker Award from theDistrict Collector, on the eve of Republic Day Celebrations on 26.1.2011.Shri JRP Sridhar, R.M Visakhapatnam, receiving the Best Banker Award from theDistrict Collector, Visakhapatnam on the eve of Republic Day on 26.1.2011.Handing over Cheque of Rs1.23 Cr by Shri K. Lakshmana Rao, Chairman duringSHG Loan Mela at Pochampalli Branch in Nalgonda RO.Handing over Cheque for Rs 5 Crore to Kinnera Zilla Mahila Samakya, Khammam,by Hon.'ble Chief Minister Shri N. Kiran Kumar Reddy, organized by our Khammam RO.we are with you!we are with you!

Customers' meet conducted at Sadasivapet branch in Sangareddy regionon the occassion of branch shifting into new premisesVisit of World Bank Team to our Nandigam Br. Ashoknagar RO and inspection ofAnimal Husbandry Units. Shri A. Ramesh Rao, BM look onDistribution of milch animals by Chairman Shri K. Lakshmana Rao,at our Yadagirigutta BranchVigilance Awareness Week conducted at Head Office on 25.10.2010 attended byManagement Auditor Shri A.K. Gupta, DGM, SBI.Customer Awareness Campaign on Bank's Products and Servicesby means of Burra Katha.Opening of new Branch in Court Road,Janagoan. Shri K. Solomon, General Manager(OP) and Shri G.V. Ramana Prasad, Regional Manager, Warangal look on.86Events & Happenings87Shri K. Lakshmana Rao, Chairman, handing over Keys of the Car financedby our Arasavalli Branch, Srikakulam RO.Vermi Compost Unit financed by our Arasavalli Branch, Srikakulam Region.Sri V. Narsimha Reddy R.M. & AGM RBI Inspecting the UnitsDisbursement of SHG loans by Shri M. Krishna Rao, General Manager at ourYadagirigutta Branch. Shri K. Lakshmana Rao, Chairman looks on.Processing of applications in Loan Mela conducted by BHEL Branch, Ashoknagar Region.Handing over a Cheque of Rs 2.35 Cr by Shri R. Venkat Reddy Minister to SHGgroups in a programme organised by our Khammam ROSri PAS Sudhakar Rao G.M. (HR) & M. Krishna Rao G.M. (IT) along with HOstaff Welcoming Sri K. Lakshmana Rao, Chairman on his assuming chargewe are with you!

Events & Happenings88APGVB Staff Learning Centre

View of Training programmes conducted atBank's Staff Learning Centrewe are with you!

we are with you!

Head Office: 2-5-8/1 Near Ambedkar Statue, Ramanagar, Hanamkonda - 506 001 Warangal Dt. A.P.Ph: 0870 - 2577256 I Tollfree : 18004257900 I e-mail: apgvikasbank2006@yahoo.co.in I www.apgvbank.inExperienced, leading the youngTransformation into new age banking

Important Telephone Numbers SNO NAME MOBILE LAND LINE FAX NUMBER

Head Office - Warangal

1 CHAIRMAN -  0870 2577700 -

2 General Manager (Credit) - 0870 2577725 -

3 General Manager (HR) - 0870 2577726 -

4 General Manager (Operations) - 0870 2577755 -

5 General Manager (IT) 9440903901 0870 2455944 -

6

Chief Manager (Vig & DP)  9440903902 0870 2577711  -

7 Chief Manager (A&I) 9440903903 0870 2566633 -

8 Chief Manager (Accounts) 9440903904 0870 2577744 -

9 Chief Manager  (P&D) 9440903907 0870 2577766 -

10 Chief Manager (Adv) 9440903908 0870 2577733 0870 2455946

11 Chief Manager (IT) 9491065590 0870 2455257 -

12 Chief Manager (Per & HRD) 9440903906 0870 2577977 0870 2550370

13 Chief Manager (Training) 9493126204 0870 2544801 -

14 Chief Manager (Board) 9440903905 0870 2577256 -

15 Chief Manager (ICT) 9490153767 -  -

16 Officer- Board Secretariat 94901573580870 2577256

 -

17 Sect to Chairman - 0870 2577700 -

Regional Office - Srikakulam

1 Regional Officer 9440903954 08942 221041

08942 2210402 Manager (Admn) 9440903911 08942 220157

3 Manager (Adv) 9440903912 08942 221439

Regional Office - Visakhapatnam

1 Regional Officer 9440903929 0891 2713942

0891 27139722 Manager (Admn) 9440903918 0891 2713981

3 Manager (Adv) 9490153756 0891 2713972

Regional Office - Vizianagaram

1 Regional Officer 9490153758 08922 273955

08922 2742212 Manager (Admn) 9490153759 08922 273956

3 Manager (Adv) 9490153760 08922 273958

Regional Office - Khammam

1 Regional Officer 9440903926 08742 226816

08742 2242602 Manager (Admn) 9440903930 08742 228897

3 Manager (Adv) 9440903927 08742 226813

Regional Office - Nalgonda

1 Regional Officer 9440903910 08682 228996

08682 2299452 Manager (Admn) 9440903968 08682 229950

3 Manager (Adv) 9440903933 08682 229946

Regional Office - Mahabubnagar

1 Regional Officer 9440903939 08542 242861

08542 2428622 Manager (Admn) 9440903940 08542 252861

3 Manager (Adv) 9440903941 08542 248492

Regional Office - Sangareddy

1 Regional Officer 9440903949 08455 276263

08455 2766032 Manager (Admn) 9440903950 08455 274088

3 Manager (Adv) 9440903951 08455 274264

Regional Office - Warangal

1 Regional Officer 9440903956 0870 2460101

0870 25680102 Manager (Admn) - 0870 2460210

3 Manager (Adv) 9440903953 0870 2468010

Regional Office - Bhadrachalam

1 Regional Officer 9440903920 08743 232020

08743 2310202 Manager (Admn) 9440903943 08743 231492

3 Manager (Adv) 9440903931 08743 232010

Regional Office - Ashoknagar

1 Regional Officer 9490153755 040 20040772

040 2004072 Manager (Admn) 9440903932 040 23020236

3 Manager (Adv) 9440903942 040 20040774