THE BANK OF RAJASTHAN LTD

(Regd. Office :C.T. Udaipur)

BOARD SECTT.
CORPORATE OFFICE,
11/12, SENAPATI BAPAT MARG,
LOWER PAREL(W), MUMBAI-400 013
Phone : 022 30401034, 30400016
TELE FAX : 30400019
email : sect_board@rajbank.com
20th November, 2009

Dear Shareholders,

I have been appointed as Managing Director & CEO of the Bank w.e.f. 20th November 2009 by Reserve Bank of India.

I have great pleasure in extending best wishes for a prosperous NEW YEAR to you and members of your family.

At the outset, I express my sincere gratitude to all the esteemed shareholders of the Bank for the wholehearted support & confidence, which has
enabled your Bank to steadily move forward on a growth path. The Board of Directors in the meeting held on 31st October, 2009 approved
working results for the half-year ended 30th September 2009.

During the period the Bank has earned a Net Profit of Rs.34.87 Crores against Rs.65.56 Crores as on 30.09.2008. The profit has been impacted
due to the slow pickup of credit due to the current economic environment. However, the Bank is committed to growth with profitability.

PERFORMANCE HIGHLIGHTS
The performance highlights for the half year ended on 30.9.09, as reflected from the key financial indicators are as under: - (Amount in Rs crs)
30.9.09 FY 2008-09 FY 2007-08
Deposits 15997.29 15187.15 13849.35
Advances 7925.14 7780.75 7433.88
Gross NPA 177.24 160.92 126.19
Net NPA 64.07 57.03 30.90
Investments 8531.73 6809.15 4729.20
Total Income 753.40 1507.23 1176.40
Total Expenditure 691.00 1313.46 1005.12
Operating Profit 62.40 193.77 171.28
Net Profit after tax 34.87 117.71 115.20
Profit /(Loss) brought forward NA 185.69 117.24
Appropriations
Transfer to Statutory Reserve 29.43 28.80
Transfer to Capital Reserve 25.14 0.08
for Investment
Transfer to Investment Reserve 0.71 –
Account
Transfer to General Reserve 10.00 10.00
Proposed Dividend 3.23 6.72
Dividend Tax 0.55 1.15
Balance Carried over to Balance Sheet 234.34 185.69
Business Ratios
Return on Assets (ROA) (%) 0.20%* 0.74% 0.91%
CRAR- Basel-I 12.79% 12.00% 11.87%
CRAR- Basel-II 12.06% 11.50% -
Net NPA 0.81% 0.73% 0.42%
Business per Employee 5.61 5.33 5.19
Business per Branch 49.06 46.90 44.11
*not annualized
Total deposits of the Bank increased from Rs. 15,187.15 crs to Rs.15,997.29 crs showing a rise of 6.10% over March 09.Similarly, the core
deposits (excluding interbank deposits) increased from Rs. 13,832.25 crs to Rs. 14,676.17 crs showing a rise of 6.10% over March 09. CASA
deposits have increased to 27.99% from 27.41% during the current half year. The cost of deposits of Bank has been reduced from 7.10% as on
31.03.09 to 6.94% as on 30.9.09. In order to improve its CASA mix still further, Bank will continue its efforts in mobilization of low cost deposits
during next half year by launching various Deposit Mobilization Campaigns for improving SB, Current and NRE deposits.

Gross advances increased to Rs. 8038.31 crs as compared to Rs. 7884.64 crs as on 31st March 2009. The growth of advances is well spread
across the sectors and enterprises. The yield on advances has increased from 12.04% as on 31st March 2009 to 12.22% in current half year.
Bank is planning to launch two new deposit schemes namely Rajbank Young Star Savings Account and Rajbank Stree (Woman) Shakti Savings
Account with free accidental insurance and jewelry coverage of Rs. 50,000.
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The position of Priority Sector Advances for the quarter ended September, 2009 is given below :
(Rs. in crs )

Advances sector wise As on 30.09.2009

Total Agriculture Advances 854.08
Direct Agriculture 177.10
Indirect Agriculture 676.98
Small Enterprises 846.82
Micro Credit 1.52
Education 7.78
Housing 269.00
Total Priority Sector 1979.20
% Priority Sector to ANBC* 25.44
% Agriculture to ANBC* 6.78
*Adjusted Net Bank Credit
The net level of Priority Sector Advances for the half year ended stood at Rs.1979.20 crs, constituting 25.44% of ANBC. The Direct Agriculture
Advances have shown increasing trend and reached to Rs. 177.10 crs as of September, 2009 compared to Rs. 155.98 crs as of March, 2009.
The advances under Small Enterprises including manufacturing and service enterprises reached to the level of Rs. 846.82 crs and the housing
loan portfolio has stood at Rs. 269 crs whereas education loans have reached to Rs. 7.78 crs. Under the prime product of Direct Agriculture
Advances i.e. Rajasthan Bank Kisan Credit Card (RBKCC), Bank has issued 2001 fresh cards involving amount of Rs. 24 crs. Under tie up
arrangement with various tractor-manufacturing companies, Bank has disbursed Rs. 7 crs during the half year ended September 2009.
In terms of RBI guidelines for implementation of the New Capital Adequacy Framework, banks, that have a well designed and objective Internal
Credit Risk Rating Framework / System, will be permitted to migrate to the Internal Rating Based (IRB) Approach for Credit Risk, after
development of adequate default / loss database in respect of various risk categories. With a view to prepare for adoption of IRB Approach the
Bank has acquired rating software and models from M/s Icra Management Consulting Services Ltd. (IMaCS), a subsidiary of ICRA Ltd., which is a
well known rating agency in India, recognized by RBI for external rating under Standardized Approach. The software has been implemented
w.e.f. 18.8.2009.

The Bank has made concerted efforts to explore alternatives in technology to achieve cost benefits without affecting the service quality.
Significant measures have been made to reduce cost towards networking and other technology related areas by way of choosing newer avenues
like MPLS-VPN, SMS Alert Services, Debit Cards/ Instant Debit Cards preparation etc. from alternate vendors.
The Bank has aggressively participated in RBI lead project of Cheque Truncation System (CTS) in NCR region and the same is running smoothly.
The clearing operations using CTS system of RBI has resulted in considerable benefits to the customers.

Disaster Recovery (DR) Site for RTGS/NEFT operations has been setup at Jaipur to ensure continuity of these functions. The main DR site for
core banking is already operational at Indore.

Projects like corporate e-Banking, Instant Debit Cards, VISA acquiring etc. have been initiated, some of which are at the completion stage. In all,
the Bank is committed to achieving the vision of becoming a Technologically Strong Bank and mission of leveraging technology with lifelong
relationship with the customers. Bank lays great stress on quality training to its staff members on an ongoing basis so as to maintain and upgrade
skills of its most precious human resource. During the half year ended on 30.9.09 Bank Staff College has provided training to 1009 participants by
conducting 27 training programmes in the areas of Customer Service & products Orientation, Foreign Exchange, Credit Management, Priority
Sector Lending, Management Development Programme. NPA Management, Demat, KYC & AML Norms, IS Audit etc. Five locational
programmes at various centres have also been conducted.

Bank pursued its recovery drive aggressively and as a result of the initiative recoveries of Rs.1543.80 lacs in NPA and Rs. 97.92 lacs in Written Off
accounts have been received beside up gradation of accounts amounting Rs. 155.05 lacs. Net NPAs have been restricted to Rs. 5416.00 lacs
compared to Rs. 5703.00 lacs as on 31.03.09.

Bank will continue pursuing its business strategies with the objectives of improving market share in the industry, offering a range of value added
services to its esteemed customers, contributing towards national objectives enjoined upon it as a financial institution and enhancing
stakeholders value. In doing so, trust and support of our customers, employees and you, our shareholders, have always been sources of
considerable strength. We thank you for the support and solicit your continued patronage.
The Bank of Rajasthan is sensitive about the environment and utilizes natural resources in sustainable way. To this end, we have now decided to
place this report on our website. Next time, the report will be mailed to those shareholders who have provided their e-mail id through their
depository participant. To all other shareholders, it will be mailed on getting their due request for the purpose at
investorcomplaints@rajbank.com.

I once again thank you for your continued support and co-operation being extended to us and wish to assure you about our commitment to take
your Bank to the category of the best banks in the country.

Yours truly,

(G. PADMANABHAN)
MANAGING DIRECTOR & CEO
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 THE BANK OF RAJASTHAN LIMITED
(Regd. Office : Clock Tower, Udaipur)
(Central Office : Jaipur)

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR

ENDED 30TH SEPTEMBER 2009
(Rs. in lacs)
Sr. Particulars Quarter ended Half year ended Year ended
30th Sept. 30th Sept. 30th Sept. 30th Sept. 31st March
2009 2008 2009 2008 2009
Result Type Reviewed Reviewed Reviewed Reviewed Audited
1. Interest Earned (a)+(b)+(c)+(d) 34059.62 33848.39 68184.92 65545.86 137583.96
(a) Interest / Discount on advance/ bills 22855.25 23170.33 46060.06 43308.47 91709.90
(b) Income on Investments 10820.85 8427.47 20517.84 17072.75 36620.94
(c) Interest on balances with Reserve Bank of India 381.23 2213.06 1572.01 5117.63 8751.38
and Other Inter Bank Funds
(d) Others 2.29 37.53 35.01 47.01 501.74
2. Other Income 3360.44 2694.89 7155.22 5137.09 13138.95
3. Total Income (1+2) 37420.06 36543.28 75340.14 70682.95 150722.91
4. Interest Expended 27024.82 23612.09 54073.57 46972.61 99845.27
5. Operating Expenses (i+ii) 7513.99 7060.25 15026.82 13691.96 31500.95
(i) Employees Cost 4660.28 4375.05 9593.20 8671.29 20881.88
(ii) Other Operating Expenses 2853.71 2685.20 5433.62 5020.67 10619.07
6 Total Expenditure excluding provisions and 34538.81 30672.34 69100.39 60664.57 131346.22
contingencies (4+5)
7. Operating Profit before provisions and 2881.25 5870.94 6239.75 10018.38 19376.69
contingencies (3-6)
8. Provisions (other than tax) and Contingencies (30.77) 176.51 1009.68 547.60 2068.12
9. Exceptional Items - - - -
10 Profit / (Loss) from Ordinary Activities before tax (7-8-9) 2912.02 5694.43 5230.07 9470.78 17308.57
11. Tax expense 1132.00 2230.78 1742.57 2914.73 5537.38
12. Net Profit / (Loss) from Ordinary Activities 1780.02 3463.65 3487.50 6556.05 11771.19
after tax (10-11)
13. Extraordinary Items (net of tax expenses) - - - - -
14. Net Profit / (Loss for the period (12-13) 1780.02 3463.65 3487.50 6556.05 11771.19
15. Paid-up Equity Share Capital 16135.01 13445.84 16135.01 13445.84 16135.01
(Face Value per share Rs.10/-)
16. Reserves excluding Revaluation Reserves 48212.04
(as per balance sheet of previous accounting year)
17. Analytical Ratios
(i) Percentage of shares held by Government of India Nil Nil Nil Nil Nil
(ii) % Capital Adequacy Ratio (Basel I) 12.79 11.91 12.79 11.91 12.00
(ii) % Capital Adequacy Ratio (Basel II) 12.06 - 12.06 - 11.50
(iii) Earning per share Basic
a) Basic and diluted EPS before Extra-ordinary items
(net of tax expense) for the period, for the year to date 1.10 2.15 2.16 4.06 7.30
and for the previous year (not to be annualized)
b) Basic and diluted EPS after Extra-ordinary items for
the period, for the year to date and for the previous 1.10 2.15 2.16 4.06 7.30
year (not to be annualized)
(iv) NPA Ratios
a) Gross NPA 17724.09 12185.46 17724.09 12185.46 16091.60
Net NPA 6406.85 3177.27 6406.85 3177.27 5702.96
b) % of Gross NPA 2.20 1.53 2.20 1.53 2.04
% of Net NPA 0.81 0.40 0.81 0.40 0.73
c) Return on Assets (Not Annualised) 0.10 0.22 0.20 0.42 0.74
18. Public Shareholding 115203739 84077302 115203739 84077302 106703739
- No. of shares
- Percentage of Shareholding 71.40 62.53 71.40 62.53 66.13

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19. Promoters and promoter group shareholding
a) Pledged / Encumbered
Number of shares
Percentage of shares (as a % of the total NIL - NIL - NIL
shareholding of promoter and promoter group) NIL - NIL - NIL
Percentage of shares NIL - NIL - NIL
(as a % of the total share capital of the company)
b) Non-Encumbered 46146354 - 46146354 - 54646354
Number of shares 100% - 100% - 100%
Percentage of shares (as a % of the total
shareholding of promoter and promoter group) 28.60 - 28.60 - 33.87
Percentage of shares
(As a % of the total share capital of the company)

Notes:

1) The financial results have been approved by the Board of Directors at its meeting held on 31st October 2009.

2) The financial results for the quarter ended 30th September 2009 have been reviewed by the Statutory Central Auditors.

3) The financial results for the quarter ended 30.09.2009 have been arrived at after considering provision for non-performing assets and
floating provision, depreciation/ amortisation on investments, gratuity, pension, leave encashment, income tax including fringe benefit tax,
deferred tax, other usual and necessary provisions on an estimated basis and are subject to adjustments at the year end.

4) Hitherto, the Bank had adopted the policy of making 100% provision against the secured portion of those NPA’s which had remained in
doubtful category for more than 2 years. From the quarter ended September 2009, this provision has been made at 30% of secured portion
of those advances which have fallen into this category during the quarter ended September 2009 in line with RBI guidelines on
provisioning requirements. Pursuant to this change, the profit for the quarter/half year ended September 2009 is higher by Rs. 0.21 crores.

5) Upto year ended 31.03.2009, in computing the segment results, the interest expenses were allocated to the treasury and corporate /
wholesale segments by applying the cost of funds to the Average Investments / Advances and the balance was allocated to the retail
segment and, operating expenses were apportioned on the basis of segment assets. Now these have been apportioned in the ratio of total
income of each segment. In presenting the segment results of the quarter/half year ended 30.09.2009, all figures have been presented as
per changed policy.

6) In accordance with RBI guidelines, besides Treasury Operations, the Bank has identified 3 segments in its Banking Operations –
Corporate / Wholesale Banking, Retail Banking, Other Banking Business. As the Bank operates only in the domestic segment, there are
no other geographical segments.

7) Operating expenses include depreciation on immovable properties revalued as on 31st March 2008. The aggregate depreciation of
Rs.973.70 lacs is netted off against Rs.347.62 lacs being depreciation on revalued portion withdrawn from Capital Reserve (Revaluation).

8) Total number of shareholder complaints pending at the beginning of the quarter - Nil, complaints received and resolved during the quarter -
3 and complaints pending at the end of the quarter - Nil.

9) Previous period figures have been regrouped / rearranged wherever necessary.

Segment- wise Results

(Rs. in lacs)
For the Quarter For the Quarter For the Half For the Half Year For the Year
ended 30th ended 30th Year ended 30th ended 30th ended 31st
Sept. 2009 Sept. 2008 Sept. 2009 Sept. 2008 March 2009
Segment Revenue
Treasury Operations 12081.93 10803.76 24419.51 22449.93 48973.38
Corporate / Wholesale Banking 17261.31 14837.56 29745.72 26674.20 56466.02
Retail Banking 7833.27 10558.23 20253.83 20639.69 43543.14
Other Banking Operations 243.49 312.74 923.70 890.59 1750.90
Total 37420.00 36512.29 75342.76 70654.41 150733.44
Less: Inter Segment Revenue - - - - -
Net sales/ Income from operations 37420.00 36512.29 75342.76 70654.41 150733.44

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 Segment Result
(Profit / (Loss) before tax and interest from
Each segment)
Treasury Operations 1047.42 1646.11 1747.52 2407.23 5738.69
Corporate / Wholesale Banking 1119.99 2165.54 1535.98 3468.50 5571.28
Retail Banking 508.32 1540.36 1042.72 2689.25 4291.17
Other Banking Operations 236.23 311.42 906.47 877.26 1717.96
Total 2911.96 5663.43 5232.69 9442.24 17319.10
Add/(Less): Other unallocable Income/ 0.06 31.00 (2.62) 28.54 (10.53)
(Expenditure) net off 94
Total Profit Before Tax 2912.02 5694.43 5230.07 70.78 17308.57
3. Capital Employed
Treasury Operations 35173.41 23061.99 35173.41 23061.99 32363.51
Corporate / Wholesale Banking 24373.80 25003.27 24373.80 25003.27 22575.17
Retail Banking 8254.80 11397.50 8254.80 11397.50 9371.40
Other Banking Operations 32.55 47.49 32.55 47.49 36.97
Total 67834.56 59510.25 67834.56 59510.25 64347.05

PLACE: MUMBAI

DATE: October 31, 2009

(P. L. AHUJA)
Managing Director & CEO

Visit BOR on the Internet at: www.bankofrajasthan.com

Dear Shareholder,

As you are aware that the equity shares of the Bank are being traded compulsorily in the dematerialised mode. We have been intimating you the
advantages of dematerialisation of shares from time to time.

We are once again listing below the advantages available on holding the shares in the electronic form vis-a-vis holding the shares in the physical
form.

# No risk of loss, mutilation or theft of share certificate.

# No stamp duty for transfer of shares.
# No need for filling transfer deed and lodging the same with the Bank.
# Instant disbursement of non-cash corporate action benefits like: bonus and rights in to demat account.
# Direct credit of dividend amount through ECS facility on ECS centers.

We therefore, advise you to please dematerialise your shares at the earliest and avail the benefits of dematerialisation in case you are still holding
the shares in physical form.

Kindly contact our share department on telephone no. 022 32531359 ( Monday to Friday between 10.30 AM to 5.30 PM ) or e-mail at
sharedeptt@rajbank.com in case you require any further information in this connection.

In case you have already submitted your certificates for dematerialisation, please ignore this communication.

The Bank of Rajasthan Ltd. also offers depository services at its 463 branches. You may contact the branch most conveniant to you for more
details about opening and maintaining a demat account. Please visit our Website www.bankofrajasthan.com for getting branch details.

Thanking you,

Yours faithfully,

(R.K.Agrawal)
Company Secretary.

5
 THE BANK OF RAJATHAN LTD
(Regd. Office :C.T. Udaipur)
BOARD SECTT.
CORPORATE OFFICE,
11/12, SENPATI BAPAT MARG,
LOWER PAREL(W), MUMBAI-400 013

To,
All the members of The Bank of Rajasthan Ltd.

DISCLOSURE UNDER SECTION 302 OF THE COMPANIES ACT, 1956 – ABSTRACT OF THE TERMS & CONDITIONS OF APPOINTMENT
OF SHRI G. PADMANABHAN AS MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER OF THE BANK AND MEMORANDUM OF
INTEREST OF DIRECTORS THEREIN.

In exercise of the powers conferred by Section 10 BB of the Banking Regulation Act, 1949, the Reserve Bank of India, vide its order
DBOD No.8874/08.31.001/2009-10 dated 19th November, 2009 has appointed Shri G. Padmanabhan as the Managing Director & CEO of
the Bank w.e.f. November 20, 2009 for a period of two years or till further orders on the following terms & conditions:

S.No Particulars
Remuneration
1. Salary Rs.30.00 lakh per annum.
2. Entertainment allowance Actual upto Rs.24,000/- per annum.
Perquisites
1. Free Furnished House Furnished residential accommodation subject to recovery of standard rent on account of
house and on account of furniture.

2. Free use of Bank’s car for official
purposes
For private purposes on
compensating the bank with
suitable amount.
To be provided car with driver which the officer would be entitled to use also for personal
purposes up to 1500 km per month on payment of Rs.150 p.m. If car is used for personal
purposes beyond 1500 kms recovery will be made Re.1/- per km.

3. Provident Fund/Gratuity/Pension As payable under SBI Rules/Regulations under his existing employment with the SBI till the
date of his Superannuation.

4. Travelling & Halting Allowances Entitled to travel by air (Executive Class) or A/c I class while on duty. Reimbursement of
Lodging & Boarding expenses as applicable to other Directors of the Bank. Incidental
expenses subject of a maximum of Rs.500/- per trip.
5. Medical benefits 100% for self and family for disease covered under Medical Reimbursement as per IBA
guidelines. (Maximum of Rs. 1.00 lakh).
6. Other benefits
Encashment of Leave Encashment of unavailed portion of casual/sick leave and conversion into any of leave will not
be allowed. Encashment of privilege leave will be allowed on relinquishment from the post /on
expiry of term/on availing of Leave Fare concession- Maximum 30 days.
Membership of Club -
Reimbursement of daily wages to Reimbursement of engaging 1 casual labourer for maintenance of furniture, fixtures
labourers attending clients/government officers, etc. Reimbursement shall not exceed Rs.65/- per day.

7. Leave
Casual leave 12 days
Ordinary leave P.L. one day for every 11 days of service.
Sick leave 30 days for each completed year of service.
Leave Fare Concession Entitlement to travel with family once in a block of two years to any place in India, by the class
applicable under TA rules.
Shri G. Padmanabhan has assumed the charge of the office of the Managing Director & CEO on 20th November 2009.

The Board of Directors in the meeting held on 4th December 2009 co-opted Shri G. Padmanabhan on the Board of the Bank pursuant to Article
104 of the Articles of Association of the Bank, which will be confirmed and ratified by the shareholders in the General Meeting.

No other Director of the Company, except Shri G. Padmanabhan is concerned or interested in the above appointment.

For The Bank of Rajasthan Ltd.,

Mumbai, (R.K. AGRAWAL)

December 4, 2009 COMPANY SECRETARY

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Company Secretary
THE BANK OF RAJASTHAN LTD.
Corporate Office :
11-12, Senapati Bapat Marg,
Lower Parel (W), Mumbai - 400 013.