The Board of Directors have pleasure in presenting the Bank's Annual Report along withthe audited statement of accounts and the cash flow statement for the year ended 31stMarch 2017.
Performance: Domestic Business:
CASA deposits increased by 30.24% on Y-O-Y SB deposits grew by 31.92% and CD by20.86%. Share of low cost deposits (CASA) in domestic deposits improved from 34.18% as on31-03-2016 to 39.84% as on 31.03.2017.
Domestic deposits increased by 12.23% from Rs. 377309 crore to Rs. 423457crore.
Advances registered a growth of 6.38% from Rs. 268579 crore to Rs. 285725crore.
Priority Sector lending constituted 40.47% of Adjusted Net Bank Credit and theshare of Agricultural Credit to Adjusted Net Bank Credit was 19.44%.
Schematic Retail Credit grew by 10.63% from Rs 37777 crore to Rs 41793 crore.
Overall Domestic business has grown by 9.80% from Rs. 645888 crore to Rs.709183 crore during FY 2016-17.
Overseas business has de-grown by 9.70% during FY 2016-17 compared to last yearde-growth of 2.87%.
Global business has grown by 4.38% during FY 2016-17 compared to last yearde-growth of 5.19%. Total Business mix (Deposits + Advances) reached at Rs. 933820crore a growth of Rs. 39153 crore.
Total deposits increased by 5.27% to Rs. 540032 crore.
Advances increased by 3.18% to Rs. 393788 crore.
Operating profit Rs. 9733 crore and Net loss Rs. 1558 crore. Capital AdequacyRatio at 12.14% as against 10.25% prescribed by RBI (under Basel III).
Net Worth at Rs. 19907 crore declined by (1.31%) over March 2016.
Book value per share Rs. 188.62.
Gross NPA ratio at 13.22% as on 31.03.2017.
Net NPA ratio at 6.90% as on 31.03.2017.
The Financial performance of the Bank for the year 2016-17 is summarised below:(Amount in crore)
|Particulars ||2015-16 ||2016-17 ||Growth (%) |
|Net Interest Income ||11724 ||11826 ||0.87 |
|Non-Interest Income ||3653 ||6772 ||85.38 |
|Operating Expenses ||9341 ||8866 ||-5.09 |
|Operating Profit ||6036 ||9733 ||61.25 |
|Provisions / Contingencies ||12125 ||11291 ||-6.88 |
|Net Profit ||-6089 ||-1558 ||74.41 |
|Earnings per share ( Rs. ) ||-83.01 ||-15.72 ||-81.06 |
|Book Value per share ( Rs. ) ||246.82 ||188.62 ||-23.58 |
|Return on Equity (%) ||-26.10 ||-7.78 || |
|Return on Average Assets (%) ||-0.94 ||-0.24 || |
Key Financial Ratios are presented below
|Parameters ||2015-16 ||2016-17 |
|Yield on Advances ||8.28 ||7.98 |
|Yield on Investment ||7.81 ||7.58 |
|Yield on funds ||6.87 ||6.41 |
|Cost of Deposits ||5.25 ||4.84 |
|Cost of funds ||4.95 ||4.48 |
|Net Interest Margin ||2.11 ||2.20 |
|Non-Interest Income to ||39.10 ||76.38 |
|Operating Expenses || || |
|Other Income to Average ||0.57 ||1.03 |
|Working Fund || || |
|Operating Expenses to Average ||1.54 ||1.45 |
|Working Fund || || |
|Staff Expenses to Average ||0.88 ||0.88 |
|Working Fund || || |
|Other Operating Exp. to ||0.66 ||0.57 |
|Average working Fund || || |
|Asset Utilization Ratio ||0.99 ||1.59 |
|Non-Interest Income to Total ||8.04 ||14.70 |
|Income || || |
|Non-Interest Income to Net ||23.75 ||36.41 |
|Income || || |
|Cost to Net Income Ratio ||55.72 ||47.67 |
Bank of India has been ranked as the 2nd Most Trusted Bank in the PSU Bankcategory by Economic Times.
Bank awarded as Best Bank for Managing IT Ecosystem among Large Banksin IDRBT Banking Technology Excellence Awards for FY 2015-16
Bank received the Best Bank Award for Electronic Payments among LargeBanks from IDRBT Banking Technology Excellence Awards for FY 2015-16In-houseMagazine Taarangan' conferred with International award for Best In-house Magazine 7th CMO Asia Award at Singapore.
During the year Bank has reised Rs. 1338 crore by issue of 120660113 fresh equityshares to Government of India at the price Rs. 110.89 per share.
The Bank has also received Rs. 1500 crore from Government of India and Rs. 221.92 crorefrom Life Insurance Corporation of India towards share application money for subscriptionof equity share on preferential basis. The same is treated as CET-1 Capital for CRARpurpose on 31.03.2017 in accordance with RBI circulars.
During the year Bank has also received additional Tier-I capital Bonds for an amount ofRs. 2500 crore and Tier-II Bonds for an amount of Rs. 2500 crore. These bonds are listedon the stock Exchanges.
As per Basel III framework the Bank's Capital Adequacy Ratio was 12.14% which ishigher than the regulatory requirement of 10.25% ? Details of Capital Adequacy(BASEL-III) are :
| ||BASEL III |
|Particulars ||31.03.2016 ||31.03.2017 |
| ||Amount ||CRAR (%) ||Amount ||CRAR (%) |
|CET 1 Capital ||27385 ||7.97 ||24857 ||7.17 |
|Additional Tier I Capital ||3662 ||1.06 ||6009 ||1.73 |
|Tier I Capital ||31047 ||9.03 ||30866 ||8.90 |
|Tier II Capital ||10242 ||2.98 ||11216 ||3.24 |
|Total Capital ||41289 ||12.01 ||42082 ||12.14 |
|Risk Weighted Assets ||343754 || ||346611 || |
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts for the year endedMarch 31 2017: a) The applicable accounting standards have been followed along withproper explanation relating to material departures if any b) The accounting policiesframed in accordance with the guidelines of the Reserve Bank of India were consistentlyapplied. Reasonable and prudent judgments and estimates were made so as to give a true andfair view of the state of affairs of the Bank at the end of the financial year and of theprofit and loss of the Bank for the year ended March 31 2017 c) Proper and sufficientcare for the maintenance of adequate accounting records in accordance with the provisionsof applicable laws governing banks in India for safeguarding the assets of the Bank andfor preventing and detecting fraud and other irregularities d) Annual accounts have beenprepared on a going concern basis e) Internal financial controls system to be followed bythe Bank were laid down and that such internal financial controls are adequate and wereoperating effectively f) Proper systems have been devised to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.