The Board of Directors have pleasure in presenting the Banks Annual Report alongwith the audited statement of accounts and the cash flow statement for the year ended 31stMarch 2016.
> CASA deposits increased by 11.84% on Y-o-Y SB deposits grew by 12.54% and CD by8.04%. Share of low cost deposits (CASA) in domestic deposits improved from 29.48% as on31-03-2015 to 34.18% as on 31.03.2016.
> Domestic deposits decreased by 5.20% from Rs. 398000 crore to Rs. 377309 croreas a result of our strategy to shed high cost deposits. Share of Term Deposits of lessthan Rs. 1 Crore (Retail deposits) in total term deposits increased to 71 % from 56 %Y-o-Y.
> Advances registered a negative growth of 7.23% from Rs. 289515 crore to Rs.268579 crore as the focus was more on recovery and up-gradation of stressed assets andon re-balancing of books in favour of Retail Assets. Share of Retail Assets increased to49 % from 44 % Y-o-Y while that of Corporate Loans decreased from 56 % to 51 % asdesired.
> Priority Sector lending constituted 35.78% of Adjusted Net Bank Credit and theshare ofAgricultural Credit to Adjusted Net Bank Credit was 17.27%.
> Schematic Retail Credit grew by 10.61% from Rs. 34153 crore to Rs. 37777 crore.
> Overall Domestic business has de-grown by 6.05% from Rs. 687515 crore to Rs.645888 crore during fY 2016.
> Overseas business has de-grown by 2.87% during FY 2016 compared to last yeargrowth of 13.65%.
> Global business has de-grown by 5.19% during FY 2016 compared to last year growthof 10.60%. Total Business mix (Deposits + Advances) reached at Rs. 894667 crore adegrowth of Rs. 48966 crore.
> Total deposits decreased by 3.55% from Rs. 531907 crore as on 31.03.2015 to Rs.513005 crore as on 31.03.2016.
> Advances decreased by 7.30% from Rs. 411726 crore as on 31.03.2015 to Rs.381662 crore as on 31.03.2016.
> Operating profit was Rs. 6036 crore and Net loss was Rs. 6089 crore.
> Basel III ratios : CET 1 Plus CCB was at 7.97% as against minimum prescribed levelof 6.125% Tier 1 was at 9.03% as against minimum prescribed level of 7.625% and capitaladequacy ratio stood at 12.01% as against 9.625% prescribed by RBI (under Basel III).
> NetWorth as on March 312016 stood at' 20172.03 crore.
> Book value per share was Rs. 262.77ason 31.03.2016.
> Gross NPA ratio stood at 13.07% as on 31.03.2016.
> Net NPA ratio was 7.79% as on 31.03.2016.
The Financial performance of the Bank for the year 2015-16 is summarised below:
| || || ||(Rs. in crore) |
|Particulars ||2014-15 ||2015-16 ||Growth (%) |
|Net Interest Income ||11344 ||11724 ||3.35 |
|Non-Interest Income ||4233 ||3653 ||-13.70 |
|Operating Expenses ||8089 ||9341 ||15.48 |
|Operating Profit ||7488 ||6036 ||-19.39 |
|Provisions / Contingencies ||5779 ||12125 ||109.81 |
|Net Profit ||1709 ||-6089 ||-456.29 |
|Earnings per share (Rs.) ||26.57 ||-83.01 ||-412.42 |
|Book Value per share (Rs.) ||398.02 ||262.77 ||-33.98 |
|Return on Equity (%) ||6.70 ||-25.39 || |
|Return on Average Assets (%) ||0.27 ||-0.94 || |
Key Financial Ratios are presented below
| || ||(In %) |
|Parameters ||2014-15 ||2015-16 |
|Yield on Advances ||8.36 ||8.28 |
|Yield on Investment ||8.08 ||7.81 |
|Yield on funds ||7.13 ||6.87 |
|Cost of Deposits ||5.70 ||5.25 |
|Cost of funds ||5.27 ||4.95 |
|Net Interest Margin ||2.11 ||2.11 |
|Non-Interest Income to Operating Expenses ||52.33 ||39.10 |
|Other Income to Average Working Fund ||0.66 ||0.57 |
|Operating Expenses to Average Working Fund ||1.33 ||1.54 |
|Staff Expenses to Average Working Fund ||0.82 ||0.88 |
|Other Operating Exp. to Average working Fund ||0.51 ||0.66 |
|Asset Utilization Ratio ||1.23 ||0.99 |
|Non-Interest Income to Total Income ||8.88 ||8.04 |
|Non-Interest Income to Net Income ||27.17 ||23.75 |
|Cost to Net Income Ratio ||51.93 ||55.72 |
> During the year Bank has introduced Prime Minister Awas Yojana to participate inGovernment of India (GOI) initiative under Housing for All (Urban) Missionbeing implemented during 2015-2022.
> Bank has introduced Pradhan Mantri Kaushal Rin Yojana (Skill Loan Scheme) toprovide fillip to Skill Development initiatives of the GOI.
> Under Prime Minister Employment Generation Programme (PMEGP) the Bank hassanctioned 1108 accounts with limit of ' 65 crore.
> Under Pradhan Mantri Mudra Yojana (PMMY) the bank has opened 376486 accountsand ' 2752.28 crore has been disbursed under the scheme.
> MUDRA cards has also been given to the 17998 beneficiaries during the year.
> Under Stand-Up India programme the Bank has so far opened 32 accounts with asanctioned limit of' 546 lakhs.
> Banks PMKVY Online Portal has been launched for opening of Students/Traineesaccounts under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) Scheme.
> The Bank is also one of the 1st few banks to have integrated its operating systemwith Vidya Lakshmi Portal an initiative of the GOI to provide single window solutions tostudents for availing Education loans.
> The bank is also promoting and handholding/financing SC/ST youth as anentrepreneur to generate employment by extending training programme through RuralSelfEmployment Training Institute (RSETI) and arranging working capital requirements.
> Use of BC network for National Skill Development Corporation (NSDC) project.
> Bank has tie-up arrangement with Maharashtra Sales Tax department and Tea BoardWest Bengal for collection of Sales Tax / Vat and auction of tea lots respectively in thestates.
> BOI Eazy Pay - a person to person payment solution - Rolled outon 01.04.2015.
> Introduced RuPay Platinum Cards.
> Rolled out Closed User Group (CUG) Pre-paid Cards for AIIMS Bhubaneswar and Patna.
> Introduced Platinum Credit Cards with enhanced revamped features.
> Rolled out Secured Credit Cards (Privilege and Privilege Plus) for NRI andindividuals who are not able to furnish IT Returns.
> Business Debit & Credit Cards with enhanced features launched under Visanetwork.
> Co-branded Pre paid Cards - Gift Cards General Purpose Cards and Corporate GiftCards in partnership with Reliance Money Express (YouFirst) rolled out.
> mVisa - a mobile to mobile payment solution - individuals to merchant paymentsolution was launched in May 2015. Being rolled out shortly in two Metros.
> Implemented Fraud Risk Management system for cards.
> Introduction of SMS based Mobile Recharge facility is under process.
During the year the Bank has made preferential allotment of 151643949 Equity Sharesof ' 10 each in accordance with the regulation 76(1) of SEBI (Issue of Capital andDisclosure Requirements) Regulations 2009 the details of which are as under:
| || || || ||(' in crore) |
|Date of Allotment ||Name of the Shareholder ||No. of equity shares ||Premium per share (in ' ||Amount |
|30.09.2015 ||Government of India ||127004655 ||183.30 ||2455.00 |
|05.01.2016 ||Life Insurance Corporation of India ||20000000 ||122.06 ||264.12 |
|30.03.2016 ||General Insurance Corporation of India ||4639294 ||76.22 ||40.00 |
| ||Total ||151643949 || ||2759.12 |
The Bank has received ' 1150 crore from Government of India and ' 153.65 crore fromthe Life Insurance Corporation of India towards share application money for subscriptionto equity shares on preferential basis the allotment of which has been made on 4thMay 2016. The same is treated as CET1 capital for CRAR purpose as on 31.03.2016 inaccordance with RBI circulars.
> As per Basel III framework the Banks Capital Adequacy Ratio was 12.01%which is higher than the regulatory requirement of 9.625%.
> Details of Capital Adequacy (BASEL II & III) are :
| || |
BASEL - II
BASEL - III
|Particulars || |
| ||Amount ||CRAR (%) ||Amount ||CRAR (%) ||Amount ||CRAR (%) ||Amount ||CRAR (%) |
|CET 1 Capital || || || || ||26091 ||7.18 ||27385 ||7.97 |
|Additional Tier I Capital || || || || ||3618 ||1.00 ||3662 ||1.06 |
|Tier I Capital ||29864 ||8.23 ||25509 ||7.57 ||29709 ||8.17 ||31047 ||9.03 |
|Tier II Capital ||11554 ||3.19 ||15097 ||4.48 ||9289 ||2.56 ||10242 ||2.98 |
|Total Capital ||41418 ||11.42 ||40606 ||12.05 ||38998 ||10.73 ||41289 ||12.01 |
|Risk Weighted Assets ||362726 || ||336943 || ||363523 || ||343754 || |
Awards & Accolades:
> Bank of India has been rated as the Second Most Trusted Brandin India among PSU banks in 2015 by Economic Times.
> Bank of India ranked 23rd amongst all the brands and 2ndnext to SBI amongst Banks under IPSOS survey Indias most influential Brands 2015.
> Elets Media -BFSI Leadership Award for best Financial Inclusion initiatives.
> IDRBT BANKING EXCELLENCE AWARDS - Best Bank Award under category Use ofTechnology for Financial Inclusion among large Banks for the year 2015 conferred byGovernor Reserve Bank of India.
DIRECTORS RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts for the year endedMarch 31 2016:
a) The applicable accounting standards have been followed along with proper explanationrelating to material departures if any
b) The accounting policies framed in accordance with the guidelines of the Reserve Bankof India were consistently applied. Reasonable and prudent judgments and estimates weremade so as to give a true and fair view of the state of affairs of the Bank at the end ofthe financial year and of the profit and loss of the Bank for the year ended March 312016
c) Proper and sufficient care for the maintenance of adequate accounting records inaccordance with the provisions of applicable laws governing banks in India forsafeguarding the assets of the Bank and for preventing and detecting fraud and otherirregularities
d) Annual accounts have been prepared on a going concern basis
e) Internal financial controls system to be followed by the Bank were laid down andthat such internal financial controls are adequate and were operating effectively
f) Proper systems have been devised to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.