Auditors Report

To
The Members of IDBI Bank Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of the IDBI Bank Limited ('the Bank'), which comprise the Balance Sheet as at
March 31, 2014 and the Profit and Loss Account and the Cash Flow Statement for the year then ended and a summary of significant accounting
policies and other explanatory information.
The audit was planned and conducted as to cover records available at various processing centers/ regional offices/ branches and reports
generated through centralized banking applications at central office level and visit at 69 centers/offices/branches of the Bank, covering 77% of
Advances and 78% of Deposits of the Bank. Incorporated in the said financial statements are the returns of the Dubai branch of the Bank,
audited by another auditor.
Management's Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial statements that gives true and fair view of financial position, financial
performance and cash flows of the bank in accordance with provisions of Section 29 of the Banking Regulation Act, 1949 read with Section
211 of the Companies Act, 1956 and circulars and guidelines issued by Reserve Bank of India from time to time. This responsibility includes
the design, implementation and maintenance of internal control relevant to the preparation of the financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of the Bank including its
branches and central processing unit/regional processing units in accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India.
Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatements.
4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank's
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6 In our opinion and to the best of our information and according to the explanations given, the said financials statements together with notes
thereon give full information required by the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in the manner so required for
banking companies and give true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Bank as at March 31, 2014;
(b) in case of the Profit and Loss Account, of the profit of the Bank for the year ended on that date;
(c) in the case of the Cash Flow Statement, of the cashflows of the Bank for the year ended on that date.
Emphasis of Matter

7 We draw attention to Note.7(b) to the financial statements which describes creation of deferred tax liability on Special Reserve under Section
36(1)(viii) of the Income Tax Act, 1961 pursuant to RBI's Circular No. DBOD. No. BP. BC.77/ 21.04.018/201314 dated December 20, 2013.
Our opinion is not qualified in respect of this matter.
Other Matters
8 We did not audit the financial statement of the Dubai branch of the Bank, whose financial statement as at March 31, 2014 reflects total assets
of Rs. 241,007,883 thousand, total revenues of Rs. 10,500,926 thousand and cash outflows of Rs. 2,781,475 thousand for the year then ended.
These financial statements have been audited by another auditor, duly qualified to act as an auditor in the country of incorporation of the said
branch, whose report has been furnished to us and which was relied upon by us for our opinion on the financial statements of the Bank. Our
opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
9 The Balance Sheet and Profit and Loss Account and the Cash Flow Statement have been drawn up in accordance with the provisions of
Section 29 of the banking regulation Act, 1949 read with Section 211 of the Companies Act, 1956.
10 We report that:
(a) We have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purposes of
our audit and have found them to be satisfactory;
(b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank;
(c) The key operations of the Bank are completely automated and key applications are integrated with the core banking systems, the audit is
carried out centrally as all the necessary records
and data required for the purposes of our audit are centrally available therein.
11 In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with accounting
standards referred to in Subsection(3C) of Section 211 of the Companies Act, 1956 (which continue to be applicable in respect of Section 133
of the Companies Act, 2013), to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.
12 We further report that:
(i) the Balance Sheet, Profit and Loss Account dealt with by this report are in agreement with the books of account;
(ii) the financial accounting system of the Bank are centralised and therefore, accounting returns are not submitted by the branches;
(iii) in our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those
books;
(iv) provision of Section 274(1)(g) of the Companies Act, 1956 are not applicable in terms of Notification No. G.S.R.829 (E) dated October 21,
2003 issued by Department of Company Affairs, Government of India.
For Khimji Kunverji & Co
Chartered Accountants
FRN: 105146W
Gautam V Shah
Partner (F117348)
For G D Apte & Co
Chartered Accountants
FRN: 100515W

Saurabh S Peshwe
Partner (F121546)
Mumbai
April 30, 2014