Letter to Shareholders
I It gives me immense pleasure to share with you that your Bank crossed yet anothermilestone during financial year 2016-17 with its total Business surpassing the Rs.3.39Lakh Crore mark. The performance highlights of your Bank for the Financial Year 2016-17are as follows:
Total Business increased to Rs.339673 Crore as on 31.03.2017 from Rs.310673Crore as on 31.03.2016 registering a growth rate of 9.3%.
Total Deposits increased to Rs.195441 Crore from Rs.174302 Crore in theprevious year registering a growth rate of 12.1%.
CASA Deposits increased to Rs.57315 Crore from Rs. 45465 Crore registering agrowth rate of 26%.
Cost of Deposits stood at 6.43%.
Gross Bank Credit increased to Rs.144232 Crore from Rs.136371 Crore registeringa growth rate of 5.76%.
Credit Deposit Ratio stood at 73.8% compared to 78.3% during the previous year.
Yield on advances stood at 9.77%
Net Interest Margin stood at 3.07%.
Non-Interest Income stood at Rs.2308 Crore.
Net Profit for 2016-17 stood at Rs.174 Crore.
Gross NPAs to Gross Advances Ratio stood at 12.25%.
Net NPAs to Net Advances Ratio stood at 7.57%.
Capital Adequacy Ratio stood at 12.38% under BASEL-III.
Return on Average Assets stood at 0.08%.
Net Profit per Employee stood at Rs.0.90 Lakh.
Average Business per Employee stood at Rs.16.61 Crore.
Network Expansion: During 2016-17 your Bank opened 105 Branches and added 293ATMs/BNAs/CRs. As on 31.03.2017 Bank had 6875 Delivery Channels consisting of 2908Branches 4 Extension Counters 34 Satellite Offices and 3929 ATMs/BNAs/CRs
During FY 2016-17 your Bank has taken the following
I.T. initiatives to improve Customer Service:
Private Cloud implementation: Bank has implemented private cloud at BanksData Centre.
Call Centre Outsourcing: Bank has outsourced Call Centre operation to M/sTata Business Support Services Ltd.
A unique registration number will be generated to each Form15G/H applicationsubmitted by the customer. Data of income earned on deposits and from other sourcescustomer demographic details etc. will be captured during the process and uploaded toIncome Tax department.
Necessary customization is implemented in Internet Banking application forenabling IMPS facility which allows customers to remit funds to other bank beneficiariesinstantly and 24*7.
In addition to the existing Payment Gateways Bank has integrated paymentgateways of service providers like Techprocess Atom & Zaakpay for carrying outdifferent types of bill payments online.
Bank has introduced a new facility to domestic Indian Resident and NRI customersto enroll and enquire for Rs.Atal Pension Yojana' scheme through Internet Banking.
Online Self-sign up for internet banking facility is introduced. Customers canregister for Internet Banking facility using debit card PIN & OTP.
Option for generation of PIN by customers themselves for Debit Cards in ATMs isintroduced.
Selfie account opening app wherein prospective customers can take a selfie andsubmit request for new account opening by scanning Aadhar QR code and taking a scan of PANcard. The system will display the reference number and instruction to visit opted Branchwith original AADHAAR and PAN card for account opening.
Bank has launched UPI App that enables linking of multiple bank accounts into asingle mobile App. The App has option to send money using Account No. IFSC Mobile andAadhaar. It has the option for requesting money from anyone using the Virtual PaymentAddress. Customer can lodge transaction related grievances/complaints directly from theApp itself.
Seeding of mobile number to Customer Master through Micro ATMs and Kiosk Outletswas enabled. After successful validations of all parameters mobile number will be updatedin Customer Master.
AB Subh Yatra-Holiday Saving Plan: Necessary customisation was built in InternetBanking for enabling AB Subh Yatra holiday saving plan. This holiday saving plan isprovided in association with M/s Thomas Cook India Limited to enable our customers toavail their Holiday Packages.
AB eVyapar-Merchant Payment App: AB eVyapar App is developed for Aadhaar enabledpayments to merchant by customers. This App is now available in Android platform. Themerchant can select the bank enter customer's Aadhaar number (or Scan Aadhaar QR code)and the amount in the App and thereafter ask the customer to place the finger on biometricdevice and the transaction will be authorized.
An App has been developed to accept the request for Aadhaar Seeding through SMSmode. After validating the SMS received an entry will be made in AADHAAR seeding table inentry status for seeding of the Aadhaar to the account and a confirmation SMS will be sentto the customer with status of the request.
Financial Inclusion :
Bank has successfully implemented PMJDY and as on
31.03.2017 24.23 lakh accounts have been opened as against 21.78 lakhs during previousyear.
Total deposits of Rs. 326.33 Crore have been mobilized vis-a-vis Rs.212.91crores during 2015-'16 with an average balance of Rs.1346.57 as against Rs.977.51 theprevious year.
Your Bank is the pioneer in introducing OD facility through ATMs and Micro ATMsin PMJDY Accounts.
APY - Bank has enrolled about 1.39 Lakh accounts under APY in FY 2016-17. Bankwas adjudged by PFRDA as the best performing bank among PSBs during the FY 2016 - Rs.17.
PMSBY - 67.50 lakh accounts have been enrolled under PMSBY.
PMJJBY- 7.12 lakh accounts have been enrolled under PMJBY and settled 2816claims.
Bank has appointed 1777 Bank Mitras covering all allotted Sub Service Areas.
Your Bank has received the following awards in the FY 2016-17:
Two prestigious awards from IDRBT in July 2016:1. Best Bank for Managing IT EcoSystem among mid-size banks and
2. Best Bank for Digital Banking among mid-size banks.
National Payment Excellence Award 2016 (Runner up) by NPCI' for excellentperformance under Rupay Card in midsize category
Banking Technology Awards from IBA under midsize bank in
1. Best Financial inclusion initiatives -Winner and
2. Best IT Risk and Cyber Security Initiatives category - Runner UP
Your Bank is committed towards delivering best services to customers by leveraging ontechnology and dedicated human resources and would tirelessly work towards maximizing'shareholders' value.
With warm wishes
(Suresh N Patel)
Managing Director & CEO
Place : Hyderabad
Date : 20.05.2017.