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Indian Ocean International Bank Limited

Unaudited balance sheet

at 31 December 2006

	31 December 2006	31 December 2005	31 March 2006
	Rs	Rs	Rs

ASSETS
Cash resources
Cash and balances with Central Bank	216,162,017	185,029,029	261,010,036
Balances with banks in Mauritius and banks abroad	160,519,488	144,989,122	131,783,700
	-----------------	-----------------	-----------------
	376,681,505	330,018,151	392,793,736
	-----------------	-----------------	-----------------
Securities, placements and other investments
Investment securities	2,362,583,735	1,887,052,088	2,258,514,062
Other investments	720,224	720,224	720,224
	-----------------	-----------------	-----------------
	2,363,303,959	1,887,772,312	2,259,234,286
	-----------------	-----------------	-----------------

Loans and advances
Personal	258,196,780	83,103,557	221,588,798
Business	1,945,135,902	1,753,878,729	1,652,439,118
Government	122,680,063	-	25,500,000
	-----------------	-----------------	-----------------
	2,326,012,745	1,836,982,286	1,899,527,916

Allowance for credit losses	(156,464,392)	(168,856,450)	(159,044,805)
	-----------------	-----------------	-----------------
	2,169,548,353	1,668,125,836	1,740,483,111
	-----------------	-----------------	-----------------
Other
Land, buildings and equipment	214,000,370	212,320,815	210,097,397
Deferred tax assets	15,220,986	20,253,209	15,687,563
Other assets	114,122,902	81,956,360	83,448,773
	-----------------	-----------------	-----------------
	343,344,258	314,530,384	309,233,733
	-----------------	-----------------	-----------------
Total assets	5,252,878,075	4,200,446,683	4,701,744,866
	==========	==========	==========

Indian Ocean International Bank Limited

Unaudited balance sheet (continued)

at 31 December 2006

		31 December 2006	31 December 2005	31 March 2006
		Rs	Rs	Rs


	LIABILITIES AND SHAREHOLDERS’ EQUITY
	Deposits
	Personal	3,163,200,644	2,675,361,000	2,680,928,617
	Business	620,451,870	512,229,646	705,256,387
	Government	49,761,001	-	16,890,431
		-----------------	-----------------	-----------------
		3,833,413,515	3,187,590,646	3,403,075,435
		-----------------	-----------------	-----------------
	Borrowings
	Banks abroad	840,870,212	504,122,000	770,296,960
	Others	696,732	5,124,445	3,950,998
		-----------------	-----------------	-----------------
		841,566,944	509,246,445	774,247,958
		-----------------	-----------------	-----------------
Other
Current tax liabilities		10,605,825	7,407,217	4,814,633
Other liabilities		116,315,113	75,763,358	98,800,622
		-----------------	-----------------	-----------------
		126,920,938	83,170,575	103,615,255
		-----------------	-----------------	-----------------

Shareholders’ equity
Ordinary share capital		168,841,850	120,601,320	120,601,320
Reserves		282,134,828	299,837,697	300,204,898
		-----------------	-----------------	-----------------
		450,976,678	420,439,017	420,806,218
		-----------------	-----------------	-----------------
Total liabilities and shareholders’ equity		5,252,878,075	4,200,446,683	4,701,744,866
		==========	==========	==========


Commitments, contingent liabilities and memorandum items		360,099,720	688,613,940	616,632,015
		==========	==========	==========

Indian Ocean International Bank Limited

Unaudited income statement

for the quarter ended 31 December 2006

	Quarter ended 31 December 2006	Nine months ended 31 December 2006	Quarter ended 31 December 2005	Nine months ended 31 December 2005	Nine months ended 31 March 2006
	Rs	Rs	Rs	Rs	Rs
Interest income
Loans	61,768,446	169,306,688	44,963,741	127,542,594	133,165,318
Securities	48,172,681	141,259,111	31,995,717	94,964,019	104,940,454
Placements and loans to banks	2,440,376	6,470,421	297,389	493,396	1,899,737
	----------------	----------------	----------------	----------------	----------------
	112,381,503	317,036,220	77,256,847	223,000,009	240,005,509
	----------------	----------------	----------------	----------------	----------------

Interest expense
Deposits	68,886,325	186,051,239	52,734,008	150,454,975	152,904,747
Deposits and borrowings from banks	12,200,055	33,727,276	657,147	757,201	8,330,492
	----------------	----------------	----------------	----------------	----------------
	81,086,380	219,778,515	53,391,155	151,212,176	161,235,239
	----------------	----------------	----------------	----------------	----------------

Net interest income	31,295,123	97,257,705	23,865,692	71,787,833	78,770,270
Provision and adjustments to income for
credit losses	(362,630)	(1,390,989)	(500,000)	(4,092,606)	6,974,277
	----------------	----------------	----------------	----------------	----------------
Net interest income after provision for credit losses	30,932,493	95,866,716	23,365,692	67,695,227	85,744,547
	----------------	----------------	----------------	----------------	----------------
Other income
Fee income and commissions	6,321,634	18,363,625	8,002,927	14,329,238	13,093,790
Profits arising from dealings in foreign currencies	6,657,088	8,752,475	3,591,908	10,399,234	7,201,049
Profit on disposal of land, buildings and equipment	74,761	74,761	86,887	48,437	229,759
Loss on disposal of non-banking asset	(392,725)	(160,025)	(319,322)	(264,222)	(199,927)
	----------------	----------------	----------------	----------------	----------------
	12,660,758	27,030,836	11,362,400	24,512,687	20,324,671
	----------------	----------------	----------------	----------------	----------------
Net interest and other income	43,593,251	122,897,552	34,728,092	92,207,914	106,069,218
	----------------	----------------	----------------	----------------	----------------
Non-interest expense
Salaries and human resource development	13,102,873	33,774,833	11,949,261	30,400,974	33,601,669
Pension contributions and other staff benefits	1,754,623	4,578,204	1,528,297	3,973,307	2,503,562
Depreciation	3,346,611	10,742,392	3,239,260	8,215,942	9,803,410
Other	10,004,483	25,934,823	10,655,244	23,991,933	26,345,096
	----------------	----------------	----------------	----------------	----------------
	28,208,590	75,030,252	27,372,062	66,582,156	72,253,737
	----------------	----------------	----------------	----------------	----------------

Net profit before income taxes	15,384,661	47,867,300	7,356,030	25,625,758	33,815,481
Taxation	(4,002,259)	(10,460,760)	(1,062,806)	(5,191,021)	(9,574,532)
	----------------	----------------	----------------	----------------	----------------
Net profit for the period	11,382,402	37,406,540	6,293,224	20,434,737	24,240,949
	=========	=========	=========	=========	=========

Indian Ocean International Bank Limited

Statement of changes in equity

as at 31 December 2006

	Ordinary share capital	Share premium	Capital reserve	General reserve	General Banking reserve	Statutory reserve	Retained earnings	Total
	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
	Rs	Rs	Rs	Rs	Rs	Rs	Rs	Rs

At 1 July 2004	100,501,100	32,207,465	73,019,089	22,407,240	18,000,000	58,500,000	85,940,582	390,575,476
Transfer of depreciation on revaluation	-	-	(1,475,795)	-	-	-	1,475,795	-
Reversed of provision	-	-	-	-	(6,000,000)	-	-	(6,000,000)
Deferred tax on depreciation	-	-	368,949	-	-	-	(368,949)	-
Net profit for the year	-	-	-	-	-	-	31,688,009	31,688,009
Statutory reserve	-	-	-	-	-	4,753,201	(4,753,201)	-
Dividend paid	-	-	-	-	-	-	(10,050,110)	(10,050,110)
	-----------------	---------------	---------------	-----------------	---------------	---------------	-----------------	-------------------
At 30 June 2005	100,501,100	32,207,465	71,912,243	22,407,240	12,000,000	63,253,201	103,932,126	406,213,375
	==========	=========	=========	==========	=========	=========	=========	==========

At 1 July 2005	100,501,100	32,207,465	71,912,242	22,407,240	12,000,000	63,253,201	103,932,127	406,213,375
Issue of shares	20,100,220	-	-	(20,100,220)	-	-	-	-
Dividend paid	-	-	-	-	-	-	(9,648,106)	(9,648,106)
Transfer of depreciation on revaluation	-	-	(1,475,795)	-	-	-	1,475,795	-
Deferred tax on depreciation	-	-	368,949	-	-	-	(368,949)	-
Statutory reserve	-	-	-	-	-	3,636,142	(3,636,142)	-
Transfer to general banking reserve	-	-	-	-	7,000,000	-	(7,000,000)
Profit for the year	-	-	-	-	-	-	24,240,949	24,240,949
	-----------------	---------------	---------------	---------------	--------------	---------------	---------------	------------------

At 31 March 2006	120,601,320	32,207,465	70,805,396	2,307,020	19,000,000	66,889,343	108,995,674	420,806,218
	==========	=========	=========	=========	========	=========	=========	==========

At 1 April 2006	120,601,320	32,207,465	70,805,396	2,307,020	19,000,000	66,889,343	108,995,674	420,806,218
		-	-	-	-	-	-	-
Bonus issue of shares	48,240,530	-	-	(2,307,020)	-	-	(45,933,510)	-
Transfer of depreciation on revaluation	-	-	(1,106,847)	-	-	-	1,106,847	-
Deferred tax on depreciation	-	-	276,711		-	-	(276,711)	-
Profit for the period	-	-	-	-	-	-	37,406,540	37,406,540
Dividend paid	-	-	-	-	-	-	(7,236,080)	(7,236,080)
	-----------------	---------------	---------------	---------------	--------------	---------------	---------------	------------------
At 31 December 2006	168,841,850	32,207,465	69,975,260	-	19,000,000	66,889,343	94,062,760	450,970,678
	==========	=========	=========	=========	========	=========	=========	==========

Indian Ocean International bank Limited

Unaudited cash flow statement

for the quarter ended 31 December 2006

	31 December 2006	31 December 2005	31 March 2006
	Rs	Rs	Rs

Operating activities
Net profit before income taxes	47,867,300	17,744,569	33,815,481
Adjustments:
Depreciation	10,742,392	5,775,421	9,803,407
Profit on disposal of fixed assets	(74,761)	(226,352)	(229,759)
Loss on disposal of non-banking assets	160,025	319,322	199,827
	---------------	---------------	---------------
	58,694,956	23,612,960	43,588,956
	---------------	---------------	---------------
Changes in operating assets and liabilities:
Loans and advances	(429,065,242)	(493,347,914)	(565,705,189)
Other assets	(32,442,621)	(16,145,374)	(19,793,940)
Deposits	430,338,078	253,142,982	468,627,771
Other liabilities	17,405,996	(540,076)	22,497,188
Borrowings	62,056,668	-	369,397,860
	---------------	---------------	---------------
	106,987,835	(233,277,422)	318,612,646
Income tax paid	(4,202,990)	-	(4,082,743)
	---------------	---------------	---------------
Net Cash flows from operating activities	102,784,845	(233,277,422)	314,529,903
	---------------	---------------	---------------
Investing activities
Movement in investments	(104,069,673)	(162,236,836)	(533,698,810)
Acquisition of fixed assets	(14,755,604)	(22,722,534)	(24,257,864)
Acquisition of non banking asset	(280,033)	-	-
Proceeds from disposal of fixed assets	185,000	392,433	803,930
Proceeds from disposal of non-banking assets	1,888,500	3,352,750	4,951,270
	---------------	---------------	---------------
Net Cash flows from investing activities	(117,031,810)	(181,214,187)	(552,201,474)
	---------------	---------------	---------------
Financing activities
Dividend paid	(7,127,584)	-	(9,648,106)
	---------------	---------------	---------------
Net Cash flows from financing activities	(7,127,584)	-	(9,648,106)
	---------------	---------------	---------------
Net (decrease)/increase in cash and cash equivalents	(21,374,549)	(414,491,609)	(247,319,677)
Cash and cash equivalents at beginning of year	(12,056,362)	235,263,315	235,263,315
	---------------	---------------	---------------
Cash and cash equivalents at end of year	(33,430,911)	(179,228,294)	(12,056,362)
	=========	=========	=========
Cash and cash equivalents consist of:
Cash and balances with BOM	216,162,017	185,029,029	261,010,036
Balances with banks in Mauritius and banks abroad	160,519,488	144,989,122	131,783,700
Borrowings from banks abroad	(410,112,416)	(509,246,445)	(404,850,098)
	---------------	---------------	---------------
	(33,430,911)	(179,228,294)	(12,056,362)
	=========	=========	=========

INDIAN OCEAN INTERNATIONAL BANK LTD/UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS ENDED 31^st DECEMBER 2006

1. The Interim Financial Statements have been prepared using the same accounting policies as those adopted in the financial statements for the year ended 31^st March 2006 and comply with IAS34.

2. RESULTS

Profits for the 9 months grew by 83% compared to the corresponding period last year. This performance is attributed to a growth in business levels as advances grew by 27% and Investment in securities grew by 25 % as compare to the corresponding period. The Net Interest Income has shown a rise of 41.6% over the period. Other Income went up by 10.2 % although income from foreign exchange transactions was down by 15 % reflecting the difficult market conditions.

3. PROSPECTS

Although the recent rise in interest rates will add pressure on the bank’s profitability during the last quarter of the year, the bank expects the earnings for the year to 31^st March 2007 to show positive growth over the preceding financial year.

Copies of the interim Financial Statements can be obtained free of charge upon request at the registered office of the company.

By order of the Board

23^rd January 2007.

This communiqué is issued pursuant to DEM Rule 21

The Board of Directors of Indian Ocean International Bank Ltd accepts full

responsibility for the accuracy of the information contained in this communiqué

Indian Ocean International Bank Limited

Unaudited financial statements

Quarter ended 31 December 2006

Indian Ocean International Bank Limited

Indian Ocean International Bank Limited

Commitments, contingent liabilities and memorandum items

Quarter

ended 31 December

2006

Nine months ended 31 December

2006

Quarter

ended 31 December

2005

Nine months ended

31 December 2005

Nine months ended

31 March

Interest income

Loans

Securities

Interest expense

Net interest income after provision for credit losses

Other income

Net profit before income taxes

Net profit for the period

Indian Ocean International Bank Limited

as at 31 December 2006

Rs

Rs

Rs