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Bank of Maharashtra.

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VOLUME 328740
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Bank of Maharashtra. (MAHABANK) - Director Report

Company director report

Your Directors have pleasure in presenting the Annual Report of the Bank with theaudited Balance Sheet Profit & Loss Account and the Report on Business and Operationsfor the year ended March 31 2017.


1.1) Economic and Banking Scenario 2016-17

The global economy was marked with subdued growth with low commodity prices andinflation rates for the major part of the year. However Post U.S. election expectationsof loose fiscal policy in the United States have pushed the dollar into a strong positionand higher U.S. Treasury interest rates thereby giving momentum to the yields across theworld as well.

Indian growth story remained robust despite the demonetization drive in quarter 3 ofthe FY 16-17. Central Statistics Office has estimated the GDP to grow at 7.1% for 2016-17on an annual basis.

The government's final consumption expenditure remained the major driver of the growthin FY17 with inflation remaining under control for most part of the year on account oflow commodity prices. Investments and exports however remained subdued during the year.Agriculture is likely to register robust growth for the 2016-17 by 4.4% against previousyear's 0.8% (GVA -CSO) backed by good monsoon during the year.

A major drive was undertaken for the revival of banking sector in 2016-17 includingfresh issue of licenses for setting up small banks and payment banks.

1.2) Outlook for 2017-18

World growth is expected to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and3.6 percent in 2018(WEO April 2017) on account of stronger activity and robust globaldemand.

On the domestic front GDP growth is expected to rebound to 7.2% in 2018 and 7.7% in2019 (IMF) with inflation expected to be around 5 per cent. Revival of subduedmanufacturing and exports would remain the major concerns during FY18. Howeverremonetisation and lower borrowing costs are expected to revup the private consumptionexpenditure.

The various proposals in the Union Budget 2017-18 with regards to stepping up ofcapital expenditure; boosting the rural economy and affordable housing are expected to begrowth stimulating. Replacement of the existing multiple indirect taxes with uniform goodsand service tax (GST) across India with effect from July 12017 is set to give a majorboost to India's growth and competitiveness.

Abolition of the Foreign Investment Promotion Board (FIPB) and reforms in FDI policyhave been taken to attract higher foreign direct investment (FDI).The strong pace ofexpansion in global trade and output are expected to ease the external demand constrainton domestic growth prospects

Banking sector is also expected to be benefitted by the passing of the Bankruptcy Lawpassed for taking remedial action against defaulters

2. Performance Highlights 2016-17

1. Total Business of your Bank stood at Rs. 240590 crore as on 31.03.2017 as comparedto Rs. 250230 crore last year.

2. Total deposit stood at Rs. 139053 crore as on

31.03.2017 as compared to Rs. 138990 crore last year.

3. Average Deposits stood at Rs. 133392 crore as on 31.03.2017 as compared to Rs.124788 crore last year registering a growth of 6.89% over last year.

4. CASA deposit stood at Rs. 62419 crore against last year figure of Rs. 50967 crore(Registering growth of 22.47%). Total CASA percentage stood at 44.89%.

5. Gross advances of the Bank stood at Rs. 101537 crore as on 31.03.2017 in comparisonto Rs.111240 crore as on 31.03.2016

6. Operating Profit stood at Rs 1827.07 crore as on 31.03.2017 as compared to Rs.2345.18 crore last year

7. Business per branch is Rs 126.83 Crore as on 31.03.2017.

8. Business per employee is Rs 18.54 Crore as on 31.03.2017

2.1 Sectoral Deployment of Credit

While financing to various segments of the economy the Bank has endeavored to maintaina diversified credit portfolio with a view to ensuring credit dispersion across sectors.The Bank has continued its efforts to support core manufacturing and priority sectors aswell as infrastructure projects which serve to drive economic growth. This focus of theBank will continue in future in line with the national economic growth priorities.

Industry wise credit deployment as on 31.03.2017 is as under:

Sr. No. Percentage to total O/s O/s as on 31.03.2017 Percentage to total O/s O/s as on 31.03.2016 Percentage to total O/s
1 Industry 44811.65 44.13 60953.31 54.79
Of which
i. Infrastructure 9931.29 9.78 13055.62 11.74
ii. Chemicals Dyes Paints etc 3128.00 3.08 3202.56 2.88
iii. Petroleum 1018.97 1.00 2199.72 1.98
iv. Basic Metal and Metal Product 4975.65 4.90 6318.93 5.68
v. NBFCs and Trading 13784.69 13.58 17258.56 15.50
vi. Engineering 3537.38 3.48 3649.50 3.28
vii. Construction 119.84 0.12 3.49 0.00
viii. Other Industries 8315.83 8.19 10164.32 9.14
2 Agriculture 15491.45 15.26 14851.17 13.35
3 MSME 20419.50 20.11 22143.75 19.91
4 Housing 13595.25 13.39 10550.01 9.48
5 Education 891.05 0.88 804.06 0.72
6 Exports 1212.71 1.19 1226.61 1.10
7 Commercial Real estate 5115.21 5.04 5811.72 5.22
Gross Advances 101536.82 111240.28

2.2 Quality and NPA Management

The Bank has set up "Asset Recovery Cells (ARC)" at all Zonal offices toensure focused efforts for upgradation and NPA recovery

The Bank has also set up twelve Asset Recovery Branches (ARBs) across its Zones forlarge NPA a/cs more particularly where legal actions are in progress so as to make focusedfollow up of large NPAs Bank has been implementing Suo Motu non-discriminatory andnon-discretionary One Time Settlement (OTS) Schemes. During 2016-17 such scheme i.e."Mahabank Rahat Yoiana" was introduced for NPAs with Ledger Balance up toRs.25.00 lakhs. Sanction letters pre-approved by Head Office were sent to the eligibleborrowers. Additional relief was given to drought affected borrowers with balance up toRs. 10.00 Lakhs.

During the year 2016-17 another special Suo Motu OTS Scheme (Viz. "MahabankKarimukti Yoiana") was introduced for recovery in Regular Written Off (RWO) a/csup to Rs 25 lakhs.

In case of NPA a/cs with dues of Rs.1.00 crore to Rs.10.00 crore; Resolution Agents areappointed on selective basis so as to have an early resolution.

Recovery in smaller NPA accounts (up to Rs.25 lakhs) the services of Recovery Agentsare engaged.

Bank has also made intensive follow up with the defaulting borrowers through visitsletters notices Recovery Camps Lok Adalats actions under SARFAESI/DRT Act.

Position of Non-Performing Assets is as under;

Particulars Amt. as on 31.03.17 Amt. as on 31.03.16 Percentage of (+/-)
Gross NPA 17188.72 10385.85 65.50
% to advances 16.93 9.34 XX
Net NPA 11229.56 6832.03 64.37
% to advances 11.76 6.35 XX
Cash Recovery 876.42 772.82 12.99

2.3 Foreign Exchange Business

Particulars 2016-17 2015-16 Percentage of (+/-)
Total FEX Business Turnover 598503 595233 0.55
Merchant Busines Turnover 36852 29562 24.66
Profit in FEX Business 101.91 77.83 30.93

The International Division has given more thrust on Merchant Business (high yieldingExchange Profit) resulting into growth of 24.66%. in turnover and 30.93% in profit. 37 BCategory branches across the country cater to the international business needs of thecustomers of the Bank. Apart from TIBB at Mumbai as "A" category. The Bank hasalso NRI Cell to cater the specific needs of NRI clients.

2.4 Investment

The breakup of Investments into SLR & Non-SLR investments is given below:

• The Gross Investments as on 31.03.2017 stood at Rs 38841.56 crore of which Rs31613.02 crore are SLR securities and Rs 7228.54 crore are Non-SLR Securities. The excessSLR securities as on 31.03.2017 stood at Rs 1855.01 crore.

• The net investments (net of provisions) stood at Rs 38590.18 crore as on31.03.2017 as compared to Rs 36230.87 crore as on 31.03.2016. Investments under Held toMaturity (MTM) category consist of 77.66% while Available for Sale (AFS) comprised of22.34% of total investment portfolio as of 31.03.2017. The net interest income frominvestment activity increased to Rs 2829.47 crore from Rs 2735.20 crore during the lastyear (growth of 3.45%).

• The Non-Performing Investments stood at Rs 655.45 crore as on 31.03.2017.

2.5 Merchant Banking:

The Bank handled 70 issues (previous year 126 issues) of Commercial paper amounting toRs 30170 crore (previous year Rs 54060 crore) for its clients as an Issuing and PayingAgent (IPA) during the year.

2.6 Borrowings:

The borrowing of the Bank as on 31st March 2017 stood at Rs 8136.65 crore includingre-finance as under;

Particular Amount as at 31.03.2017 Amount as at 31.03.2016 Percentage of (+/-)
Total Borrowing 8136.65 9228.10 (0.12)
Borrowing - CBLO 0 74.54 (1.00)
Of which Refinance from 2892.95 4046.17 (0.29)
NABARD 420 893.34 (0.53)
EXIM BANK 324.25 331.27 (0.02)
RBI 0 500 (1.00)
NHB Refinance 277.89 370.52 (0.25)
Mudra Refinance 370.81 370.81 0.00
SIDBI 1500 1580.23 (0.05)
Borrowings in the form of bonds & debentures capital instruments 5225 5100 0.02
Borrowings outside India 18.65 7.34 1.54
Others 0.05 0.05 0.00

The Bank does avail refinance depending upon its liquidity position deployment offunds and also cost of such refinance despite its eligibility to avail refinance at higherlevel.

2.7 Depository Services

• Bank is Depository Participant (DP) of Central Depository Services of India Ltd.(CDSL) since September 1999.

• The Bank has also introduced Basic Services Demat Account Facility (BSDA)

2.8 Bancassurance

• Bank had added two new partners namely M/s Future Generali (Non-Life InsuranceCompany) and M/s Cigna TTK (Standalone Health Insurance Company) under Bancassurance inthe month of Feb.2017.

• Insurance for all the securities charged to the Bank may be done invariablyunder Bancassurance arrangement with UII Co. Ltd. and M/s Future Generali.

• 1241 branches are logged in as of 31.03.2017 for LIC Bancassurance business.

• We had created portal for Popularization of Mahaswastya Yojana All new as wellas renewal of cases are done through the portal in T+3 days. Now the customer havinginternet banking facility can make the payment online and generate the policyinstantaneous. This year till 31.03.2017 79 bank branches declared as BIMA Branch.

• During the year 2016-17 6993 life policies and 102752 Non-Life policies weremade.

• The Bank earned a commission of Rs 6.03 crore from life insurance and Rs 4.94crore for non-life insurance business during the year 2016-17.

2.9 Government Business

• During the year 2016-17 746218 challans of Direct Taxes and 178751 challans ofIndirect taxes were collected by the branches. Our Branches are also collecting otherstate Govt. taxes including GRAS of Maharashtra State and the total number of Challanscollected during the Year is 1189393. Total commission to the tune of Rs 5.64 Cr wasreceived on Tax collection business from Central Government.

• The Bank is processing and crediting monthly pension payments of more than114886 Central Government Defence Railway and Telecom pensioners at Central PensionProcessing Cell (CPPC) Pune. The commission on Government Business (Pension) for the Year2016-17 is Rs. 13.58 Cr.

2.10 Income Expenditure and Profitability

The total income of the Bank decline from Rs 14072.27 crore in FY 2015-16 to Rs.13570.03 crore in FY 2016-17

Particulars 2016-17 2015-16 Variation (per cent)
Interest/discount on advances/bills 8469.96 9934.83 (14.74)
Income on investments 2829.47 2735.20 3.45
Interest on interbank lending & other Interest 762.53 382.95 99.12
Total interest income 12061.96 13052.98 (7.59)
Non-interest income 1508.07 1019.29 47.95
Total Income 13570.03 14072.27 (3.57)
Interest on deposits 8075.59 8421.88 (4.11)
Interest on borrowings 11.61 54.88 (78.84)
Other Interest expenditure 800.07 697.52 14.70
Staff expenses 1807.29 1540.98 17.28
Other Operating expenses 1048.40 1011.83 3.61
Total Non-interest expenses 2855.69 2552.81 11.86
Total Operating Expenses 11742.96 11727.10 0.14
Operating Profit 1827.07 2345.18 (22.09)
Provisions and Contingencies 3199.58 2244.49 42.55
Net Profit (1372.51) 100.69 (1463.10)

2.11 Financial Ratios

Particulars 2018-17 2015-16
EPS (Rs) (11.75) 0.91
Cost to Income Ratio (percent) 60.98 52.12
Return on assets (percent) (0.86) 0.07
Return on equity (per cent) (24.92) 1.39
Book value per share (Rs) 46.96 63.36
Profit per Branch (Rs in lakh) (72.35) 5.31
Profit per employee (Rs in lakh) (10.58) 0.73
Business per Branch (Rs in crore) 126.83 132.05
Business per employee (Rs in crore) 18.54 18.18
Interest income as per cent to Average working funds 7.55 8.71
Non-Interest income as per cent to average working funds 0.94 0.68
Net Interest Margin (per cent) 1.99 2.59
Operating Profit as per cent to average working Funds 1.14 1.56
Staff expenses as a percent to average working funds 1.13 1.03
Dividend (per cent) 0 0
Net worth (Rs Crore) 5486.47 7403.05
CRAR (%) (Basel III) 11.18 11.20
Of which Tier I (%) 9.01 9.02
CET 1 7.28 7.88

2.12 Capital from Government of India

During the March 2017 quarter Government of India vide its letter no. 7/38/2014-BOAdated 16.03.2017 infused Rs.300.00 crore by way of preferential allotment of equity sharesand the amount was maintained under Share application money pending for allotment tillthe allotment of equity shares done. However RBI has allowed to treat share applicationmoney pending for allotment as CET1 capital for computation of CRAR.

2.13 Networth

The Bank's Net Worth stood at Rs.5486.47 crore as on 31.03.2017 as against Rs 7403.05crore as on 31.03.2016.

2.14 Capital Adequacy Ratio

The Capital Adequacy ratio stood at 11.18% as on 31.03.2017 against the minimum of10.25% (including CCB) prescribed by RBI in terms of Basel III norms. The Common EquityTier 1 Ratio (including CCB) stood at 7.28%

2.15 Dividend : Your Directors do not propose any dividend for the FY 2016-17 asthe Bank has incurred loss.

3 .1 Branch/ATM Network:

As on 31.03.2017 the total branch network comprised of 1897 branches spread across allthe States and 4 union territories. The branch network includes specialized branches inthe area of foreign exchange Government business Treasury and International BankingIndustrial Finance Small Scale Industry and Hi-tech agriculture Pension Payment SelfHelp Groups etc.

Area wise classification of branches as on 31.03.2017 is given in the table below:

Sr. No. Classification As on 31.03.2016 As on 31.03.2017
1 Rural 658 618
2 Semi-Urban 434 434
3 Urban 366 343
4 Metro 437 502
Total 1895 1897

# 36 Branches like Service /Retail Asset/Recovery Br's are converted as a "BackOffice" as per RBI Guidelines on 01.06.2014.


31.03.2016 31.03.2017
Offsite 577 587
Onsite 1284 1291
Total 1861 1878

3.2 Human Resources Management

The Bank has put in place a comprehensive HRM Policy that provides the road map foracquiring appropriate & need based human resources its development through trainingjob enrichment reward and recognition for better performance career progression welfareand retention.

During the year 2016-17 the Bank recruited 127 Officers in Scale I 1 Security Officerin Scale II 79 Clerks and 12 Substaff.

During the year 1017 employees ceased to be in service on account ofretirement VRS resignation termination and death.

Inter scale promotions of officers were carried out during 201617. Following number ofcandidates were promoted.

708 90 108 59 24 4

During the year 2016-17 19 Substaff were promoted to Clerical cadre.

Cadre wise staff position as of 31.3.2017 with sex ratio percentage is as under :

Category Male % Female % Total
Officers 4710 73.82 1670 26.18 6380
Clerks 3005 63.62 1718 36.38 4723
Sub-staff 1682 89.90 189 10.10 1871
Total 9397 72.43 3577 27.57 12974

The top three branches in disbursement and recovery of advances to SC/ST community wereawarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar.

The Bank has been allocating up to 3 per cent of its net profit towards various schemesfor the welfare of staff including retired staff. The welfare schemes are administered bya Central Welfare Committee consisting of management & employees representatives.

The Bank has healthy industrial relations.

The Bank has been complying with the reservation policy of Govt. of India. SpecialCells at Head Office and all Zonal Offices are functioning to monitor the implementationof the reservation policies and to redress grievances of SC/ST/OBC & Physicallychallenged employees as well as ex-servicemen. The Bank has designated Chief LiaisonOfficers at Head Office and has set up SC/ST Cells at all Zonal Offices. During the yearperiodical meetings were held with SC/ST/OBC Employees Association to discussimplementation of reservation policy and other constitutional safe guards and also tofacilitate involvement in business growth.

The number of employees belonging to different categories is as under:

S No Category of Employees No. of Employees Percentage to total
1. Women 3577 27.57%
2. Physically Challenged 214 1.65%
3. SC Employees 2370 18.27%
4. ST Employees 1035 7.98%
5. OBC Employees 2163 16.67%
6. General Employees 7406 57.08%
TOTAL employees working in the Bank 12974

Rosters have been maintained as per Government guidelines and are regularly inspected/checked.

Compassionate Appointments - A Scheme for ‘Compassionate Appointments'/Paymentof Ex-gratia lumpsum amount" to /of heirs of employees dying in harness or retiringdue to incapacitation framed as per the directives of Government of India has beenimplemented. The details of compassionate appointments and payment of Ex-gratia lumpsumamount for the year 2016-17 is as under :

Compassionate Appointments

Payment of Exgratia

Cadre No.of employees No.of employees Amount paid
Clerk 6 2 Rs.14.00 Lacs
Substaff 12 2 Rs.12.00 Lacs

The Contributory Group Insurance Mediclaim Policy for all employees includingretired employees has been renewed w.e.f. 1.4.2017 and the Sum insured is increased uptoRs.10.00 Lakhs for existing employees. The details of renewal of policy are as under :

Employees No.of Employees Premium paid
Existing 970 117.30
Retired 1740 219.44
Total 2710 336.74

The reimbursement of examination fees & payment of cash incentive/Honorariumin respect of courses from Indian Institute of Banking & Finance MBA from reputedInstitutions & CFA has been widened by adding three more courses in the list ofcourses for reimbursement of fees thereby making total 25 courses eligible forreimbursement of examination fees.

A policy for granting special leave and 100% reimbursement of hospitalizationexpenses to officers when he meets with an accident/injury while on duty is inplace.

Policy for ‘granting incentives to officers posted & transferred in Northeastern zones from other zones' framed as per the directives of Government of India.

Training Activities:

The Bank has a training system which facilitates attention to regular periodicassessment of skill gaps at various levels in relation to existing and emerging businessopportunities. Skill building in credit Forex customer relationship managementmarketing of products and services credit monitoring and recovery risk managementtechnology based banking branch management complying with statutory legal and policyrequirements and preventive vigilance received special attention during the year.

Training programs were also held on thrust areas like financing SMEs retail lendingagriculture finance soft skills and rural development.

Cadre-wise Break up of Employees trained during the period 1.4.2016 to 31.03.2017 areas under-

Cadre No. of Prog Training Days Employees Trained
Officers 146 563 3984
Clerks 44 102 684
S/staff 40 76 619
Total 230 741 5287

3.3 Technology Initiatives

The Bank had taken of & successfully initiated/launched various Major IT Projectsduring 2016-2017 which are enumerated as under:

1. During the Year 2016-17 Upgrade of Contact Center Operations including IntegratedVoice Response System (IVRS) was successfully done & System is made operational

2. Bank launched ‘MahaUPI' its UPI mobile application from 26/08/2016. As on31/03/2017 110749 customers are registered for UPI.

3. ISO 27001:2013 Re-Certification achieved by the bank during September 2016 for its4 IT Divisions thereby continuing the Quality ISMS (Information Security ManagementSystem) in our Bank.

4. Cheque Truncation System (CTS) is implemented at all South Grid Centers as per RBIdirectives..

5. Bank started the Paper-less ATM-RePIN facility (Green PIN) for ATM Card through itsATM Machines. This facility overcomes all shortcomings of the conventional re-pin requestprocess.

6. As per Directives of GOI received from time to time during the Demonetization PhaseBank has effected timely changes in ATM Cash Withdrawal Limits. Also the Banksuccessfully completed the massive exercise of physically recalibrating all its 1878 ATMsin time bound manner. These ATMs have been recalibrated on account of demonetization forthe New Rs.500 & Rs.2000 notes.

7. New Internet Banking Portal is launched for Retail Customers.

8. Bank has implemented Self Update Pass Book Printers & Bunch Note AcceptorMachines in a big way at various locations across the Bank. The same shall be continued toensure fulfilment of customer requirements/satisfaction.

Bank's Own EFT Switch is helping the bank to derive significant advantages likereduced turn-around-time to introduce new ATM Product Better customer experience Reducedrisk Instant Hot-listing of a card through multiple channels Value Added Services etc.

Bank has collaborated with VISA for International Debit Cards and with NPCI for RupayDebit Cards. Bank has commenced issue of Rupay Platinum Cards. As on 31/03/2017 the totalATM card base of the Bank stood at 64.54 Lakhs which includes 1.11 Lakh Rupay PlatinumChip cards.

Bank's Internet Banking Mobile Banking UPI & other online applications are wellreceived by our Customers. As on 31/03/2017 the number of customers registered forInternet Banking Mobile Banking & UPI stood at 6.97 Lakhs 2.92 lakhs & 1.11Lakhs respectively.

Various facilities are being provided through our Internet Banking platform forfacilitating online payment of taxes utility bill payments online shopping/e-commercerailway reservation LIC premium payment e-SBTR etc and facility for viewing tax creditstatement 26AS and Demat account with the Bank.

Bank has robust Information Security Management System (ISMS) framework in place. Itsinformation security policy statement being: "Bank of Maharashtra is committed toprotect and safeguard the critical information of all stakeholders in order to ensuresecure business operations''. Bank has also implemented major security initiativesrecommended by Gopalakrishna Committee for internal and external customers.

Bank has in place a captive Security Operations Centre (SOC) for monitoring Critical ITInfrastructure on 24 x 7 basis. The process for revamping the existing Security OperationCenter (SOC) to Cyber Security Operations Center (CSOC) as per RBI Directives isinitiated & in progress.

Bank is handling the e-Payments of State Government Taxes of Maharashtra KarnatakaTamil Nadu Madhya Pradesh & Rajasthan States.

Inward Clearing in Mumbai Pune & Ahmedabad Centers is already outsourced. Clearingprocessing for outward clearing was made live in Nagpur Zone during April 2016. It isbeing extended to Pune Centers in a phased manner so as to move towards the goal ofCentralized Clearing in future.

In the coming FY 2017-2018 Bank proposes to take up/implement the following ITInitiatives -

1. CBS Contract Renewal.

2. Cyber Security Operations Centre (CSOC)

3. Additional Network Service Provider for Leased Line/VSAT Branches

4. LMS- end to end- LOS to Recovery OTS EWS Lead Management etc

5. International Financial Reporting Standards (IFRS).

6. Upgrade of MIS ADF system.

7. Integrated Risk Management Solution.

8. SWIFT DR setup.

3.4 Customer Centric Initiatives taken by the Bank

The Bank has pursued high standards of customer service to ensure customer satisfactionthroughout the year by implementing all major recommendations of Goiporia Committee Dr.S.S. Tarapore Committee and Damodaran Committee.

As a member of Banking Codes and Standards Board of India (BCSBI) Bank has adoptedCode of Bank's Commitment to Customer and Bank's Code of Commitment to MSMEs.

Bank has printed folder called as "My Folder" containing all customer servicepolicies information on service charges guidelines on Government Schematic LoansOmbudsman and BCSBI Codes. The same is printed in Marathi Hindi and English and suppliedto all branches and Zones for making the same available to all customers on demand.

Duly documented policies approved by the Board on "Deposits""Collection of Cheques" "Redressal of Grievances""Compensation" "Operational Procedure for Settlement of Claims ofDeceased Depositors" and Customer Rights Policy are in place.

Customer Service Committees are formed at all branches and their meetings are conductedregularly on monthly basis. The Standing Committee on Customer Service at Head Office andZonal Level Customer Service Committees at Zones meet regularly to address and reviewvarious customer related matters and to take steps for an improvement on an ongoingbasis.

The Committee of the Board on Customer Service meets on quarterly basis to monitor thequality of the customer service redressal of customer grievances and to ensure customerssatisfaction.

Full-fledged grievances Redressal machinery is in place to respond promptly to customergrievances. The Bank has started internet based mechanism Standardized PublicGrievances Redressal System (SPGRS) for lodging the complaints or to givesuggestions/feedback on services by the customers and for providing acknowledgement andstatus of their feedback/complaints as per the directions of Government of India.

Sr. No. Particulars 2015-16 2016-17
1 Customer complaints at the beginning of the year 2 73
2 Complaints received during the year 3218 2912
3 Complaints redressed during the year 3147 2931
4 Complaints pending at the end of the year 73 54

It is Bank's endeavor to redress all complaints within a week's time.

Kiosk Machine has been installed at Head Office to enable the customer to registeronline complaints/suggestions and is in operation since 14.03.2013.

3.5 KYC/ AML

Know Your Customer (KYC) norms/Anti Money Laundering (AML) standards/Combating ofFinancing of Terrorism (CFT) and Obligation of Bank under Prevention of Money LaunderingAct (PMLA) 2002.

The Bank has Board approved KYC-AML-CFT Policy in place. The said Policy is thefoundation on which the Banks implementation of KYC norms AML standards and CFT measuresis based. The full KYC compliance entails staff education as well as customer educationfor which the following measures are taken by the Bank.

IBA has advised the Banks to implement 88 parameters so far for generation of AMLalerts. Bank has implemented 43 parameters out of 49 parameters as per IBA guidelines andthe remaining 6 parameters are related to 3rd party products. Inaddition to these the FEX centers/branches have been sensitized on the guidelines on TradeBased Money Laundering issued by FIU-IND to prevent fraud/money laundering.

A comprehensive list of KYC documents is uploaded on the Banks web site for the benefitof customers. Regular training sessions are conducted on KYC-AML-CFT guidelines at theBanks training establishments to sensitize the employees.

3.6 Risk Management

The Bank has put in place Risk Management Policies and Strategies enables it toidentify measure monitor and manage risk efficiently and establishes control systems inline with the Bank's aggregate Risk Appetite. Bank has constituted Risk ManagementCommittee at Board level to monitor the risk at Bank level in accordance with RBIGuidelines. Bank has also constituted sub-committees headed by Top Management of Bank.

The Bank is Compliant to the RBI guidelines on disclosure requirements under Basel IIICapital Regulations.

3.7 Brand Image:

Your Bank with a view to develop Brand Image of Bank publicize Bank's various productscoupled with Corporate Social Responsibilities has Marketing & Publicity Policy aswell as independent vertical.

Bank has extended Donations under its Corporate Social Responsilibilities toNational Sports Development Fund (NSDF) Rotary Club Nigdi for the construction ofwater Tank in Nigade Village Balewadi Stadium for providing Water Coolers"Shrutakevali Education Trust" for Bahubali Children's HospitalShravanabelagola Karnataka NAAM Foundation famous NGO working on issues likeeducation infrastructure employment food etc.

3.8 Citizen's Charter:

The Bank has adopted the Charter since 2000-01 which details the duties andresponsibilities of the Bank towards its customers. The charter is displayed at all thebranches and Bank's website. Some of important responsibility of Branches are;

> All branches of banks in all parts of the country should provide the followingcustomer services more actively and vigorously to the members of public.

> Meeting the demands for fresh/good quality notes and coins of alldenominations.

> Exchanging soiled notes and

> Accepting coins and notes either for transactions or exchange.

> Separate que for senior citizen


4.1 Priority Sector Lending

It has been the constant endeavor of the Bank to facilitate equitable and sustainableeconomic development by timely and hassle-free availability of credit for productivepurposes to Small and Marginal Farmers Micro and Small Enterprises Retail TradersProfessional and Self Employed Women Entrepreneurs and entrepreneurs from economicallyweaker sections.

The outstanding advances under Priority Sector as of 31st March 2017aggregates to Rs. 40388.63 Crore constituting 34.99% of the Adjusted Net Bank Credit(ANBC).

4.2 Agriculture

The Bank disbursed Rs. 7752 Crore for agriculture and allied activities during the year2016-17. The total outstanding advances to agriculture sector reached a level of Rs.17960Crore as on 31.03.2017 (growth of 4.57%). Bank focused on growth of investment creditunder Agriculture during the year 2016-17 and disbursed Rs. 3042 Crore. Bank also enteredinto strategic tie-up arrangements with Tractor Manufacturers Micro Irrigation Companiesfor promoting farm mechanization and micro irrigation activities during the year.

The Bank undertook awareness/sensitization programmes for all the branches forincreasing advances to agriculture by providing hassle free credit to farmers.

4.2.1 Mahabank Kisan Credit Card (MKCC)

This scheme gained popularity especially in rural areas where it is being propagatedsuccessfully and vigorously. The Bank has issued total 601303 Kisan Credit Cards tofarmers. Credit flow to MKCC beneficiaries has reached to the level of Rs.7057 Crore as on31.03.2017 (growth of 5.47 %).

4.3 Micro Small and Medium Enterprises (MSME)

SMEs are recognized as a major growth engine for the Indian economy. They generateopportunities for direct and indirect employment by facilitating use of natural resourcesand local skills to stem the tide of migration to urban areas and promote low investmententerprises. Finance is made available to viable enterprises at an attractive and low rateof interest. On line enquiry portal is made available on the Bank's website.

Our Bank has adopted Simplified Loan Application for MSEs and the same is displayed onthe Bank's website. The Bank has also adopted Bank's Code of Commitment to Micro and SmallEnterprise and the same is displayed on the Bank's website.

The Bank's lending to Micro Small and Medium Enterprises (Priority + NP) is Rs.20585.22 Crore as at 31.03.2017. Advances to Micro enterprises under priority are 7.48 %of ANBC against RBI target of 7.50 % as of March 2017.

For promoting finance under this category Bank has entered into strategic tie uparrangements with Truck/Vehicle/Passenger car manufacturers. Bank has also entered intoMoU with Bharatiya Yuva Shakti Trust and de-Asra foundation for Credit facilitation andhand holding of the Micro entrepreneurs specially under Women and SC/ST categories. Bankhas also partnered with portal for generating leads and converting theminto business to the bank by financial assistance to MSMEs.

Centralized Processing Cell have been set up at all Zonal Offices for speedy disposalof MSME proposals.

4.3.1 MUDRA: With the introduction of Pradhan Mantri MUDRA Yojana (PMMY) whichmainly consists of non-farm enterprises in manufacturing trading and services whosecredit needs are below Rs. 10.00 lakh. Bank is giving special attention to this segment.Loans given to this segment for income generation are known as MUDRA loans underPradhan Mantri MUDRA Yojana (PMMY) and branded accordingly.

Bank disbursed Rs 1732.72 Crore under PMMY against the target of Rs 1800.00 Crore as on31.03.2017. Bank achieved 96.54 % of target allotted by Government under PMMY.

Bank has launched MUDRA Card on 16.9.2015 and so far issued 8281 MUDRA Cards as on31.3.2017

4.3.2 Coverage under CGTMSE Scheme

Under Credit Guarantee Fund Scheme for Micro Small and Medium Enterprises ofGovernment of India credit facilities up to Rs.100.00 lakh are covered wherein nocollateral security and third party guarantee are insisted by the Bank. For the accountscovered under this scheme Bank is bearing 50% annual guarantee fee for loans above Rs10.00 lakh. The Bank has sanctioned loans of Rs 2228.75 Crore to 25955 borrowers underthis scheme up to March 2017. During the current FY coverage under Credit Guarantee FundScheme has increased by 11.12%.

4.3.3 Banks exposure to important segments.

S N Sector Oustanding as on 31.03.2017 Oustanding as on 31.03.2016 % of increase (+/-)
1 Micro Finance 154.52 152.62 -0.06%
2 Weaker Sector 12190 11006 10.76%
3 SC/ST beneficiaries 1738 1684 3.21%
4 Minority Community 2921 3037 -3.82%


5.1. Credit Flow to Retail Sector

The Bank is providing retail loans for salaried persons professionals businessmen andpensioners for purchase of housing properties/ plots repair/ renovation of housepurchase of consumer durables two/four wheeler vehicles education and loan for otherpersonal needs etc. The retail loan portfolio of the bank is Rs.15792.02 Crore.

Amt. in Rs. Crore

SN Scheme Brief Description Portfolio as of Mar'17 NPA %
1 Maha Super Housing Loan Scheme Housing Sector being the thrust area Bank has various Housing Loan schemes in place to meet the needs of all economic segments. Bank offers housing loan for "purchase/construction of new/existing house/flat repairs/renovation/alteration of existing house/flat purchase of plot and construction thereon" 13595.20 2.72
2 Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme Bank has launched scheme for purchase of New four Wheeler i.e. Car Jeep Multi Utility vehicles (MUVs) SUV etc. for personal use. (i.e. not for hiring/ferrying passengers) for individuals (18 years and above). 669.36 4.89
3 Model Education Loan Scheme Bank is implementing Model Education Loan Scheme as per IBA guidelines and provides hassle free Education loan to all meritorious and deserving Students (Indian National) for pursuing higher studies /education in India and abroad 891.05 5.87
4 Mahabank Top up Loan Scheme In order to extend additional credit support to existing housing loan borrowers as well takeover of existing housing loan of other banks with additional facility of Top- up Loan Bank has launched "Mahabank Top Up loan Scheme". Under this scheme credit is extended for repair/renovation/furnishing of house children's education Marriage of Children Medical treatment buying a vehicle or hi-tech gadgets etc. 67.72 2.00
5 Mahabank Gold Loan Scheme With a view to tap the potential of gold loans as a lucrative asset and to cater to the needs of meeting other personal expenses whatsoever which include personal expenditure of varied needs like marriage higher education medical emergencies business travel etc Bank has launched a retail loan product as "Mahabank Gold Loan Scheme" w.e.f. 26.09.2014. 96.58 2.80
6 Mahabank Aadhar Loan Scheme To cater to the needs of our existing pension account holders in meeting their personal expenses pilgrimage medical domestic needs etc. Bank has re-launched "Mahabank Aadhar Loan Scheme". 283.21 0.68

5.2 Centralized Processing of loans

Bank has established Centralized Processing Cells for retail/commercial advances at allits 33 Zones for hassle free & due diligence of loans with aim to improve turn aroundtime.

5.3 Door Step Banking Services

Bank has introduced Door Step Banking Services for its High End Customers and theservices include Corporate and Retail Cash pickup and delivery & Cheque CollectionServices at Clients Doorstep.

5.4 BOM SBI International Credit Card

• The BOM-SBI card base is 50064

• The commission received from SBI Card is Rs. 83.00 Lakhs during the year2016-17.


5.13.1 INTERNET /SMS/Phone Banking

Bank could achieved an increase of 28% in Internet Banking 31% in Phone Banking and33% in SMS banking over the previous year.

With continuous follow up and increase in net security through the Mahasecure for IBNusers substantial rise in users/online transactions is expected.


• Maha Mobile functionality has been customized and simplified for increasing theenrolments.

• A user manual on Internet Banking & New Maha Mobile functionality isprepared & sent to field staff for ready reference & marketing of the technologybased products.

• Bank has introduced an Incentive schemes for Branch staff & Cash Back Offerto customers for Downloading "Maha Mobile App" in the month of December 2015

• Maha Mobile App has been increased by 15744 nos. in the month of December 2015.

• Presently there are 112210 Mobile Banking users.

5.14 Tie Ups

5.14.1 Payment Gateway Services:

• Presently we are providing the facility of Payment Gateway to all our customersthrough our online aggregators.

• We have made tie up arrangement with following aggregators

Sr Particular
1 M/s Atom Technologies
3 M/s EBS solutions limited
4 M/s Ibibo i.e. PAYU
5 M/s TimesofMoney Limited
6 M/s Airpay
7 M/s CC Avenues
8 M/s Citrus Payment Solutions Pvt Ltd
9 M/s PayTm
10 M/s Techprocess payment Solutions
11 M/s SBI e pay
12 FSS Payment Solutions

5.14.2 ‘Remit2india' facility

• "Remit2India" is a web-based person to person money transfer systemthat allows individuals particularly our Non-Resident Depositors to remit foreign currencyamount for credit to the Beneficiary account in India.

• Although the income is very less in this product but is facility/Services whichwe may be useful to attract NRI customers.


The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune District ofMaharashtra have been undertaking various rural developmental activities for the benefitof farmers' viz. Vermi compost Re-development of Saline Soils Soil Testing etc. Bank hasestablished Soil testing lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil TestingLaboratory has analyzed 7007 Soil and Water samples in the year 2016-17 and accordinglycounseling is done. Farmers from the districts of Pune Ahmednagar Sholapur and Sataraare taking benefit of the lab.

A Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF)established by the bank undertakes various projects and village improvement programmes.MARDEF is imparting training to farmers on various subjects in Agriculture. Trust hasimplemented 94 training programmes for farmers at RDC Bhigwan and Hadapsar and hasbenefited 3245 farmers from April 2016 to March 2017.

The Bank has established Seven Mahabank Self Employment Training Institutes (MSETI) forproviding training to rural youth and women to enable them to acquire skills forself-employment through small business enterprises. The Institute has centers located atPune Nagpur Aurangabad Amravati Jalna Thane and Nasik. The Institute has so farimparted training to 26801 educated unemployed youths. The settlement rate is 65 per cent.

Gramin Mahila Va Balak Vikas Mandal (GMVBVM) an NGO formed by Bank of Maharashtra andNational Institute of Bank Management is actively involved in formation nurturingtraining and ensuring linkage of SHGs to Bank Credit.

The Bank has opened Financial Literacy Centers in Six Lead Districts namely PuneNasik Aurangabad Satara Jalna and Thane for creating awareness about banking schemes.


7.1 Lead Bank Scheme

The Bank has Lead Bank responsibility in seven districts of Maharashtra State viz.Aurangabad Jalna Nasik Palghar Pune Satara and Thane. Every year district creditplans for the districts are prepared and implemented with the cooperation of other banksas well as in coordination with District Collectors of respective Districts.

7.2 State Level Bankers' Committee

The Bank is the Convenor of State Level bankers' Committee (SLBC) for the State ofMaharashtra and prepares State Annual Credit Plan. The plan for the year 2016-17 was forRs.186620/- crore which is highest in the country. The same was approved in a specialmeeting held under the Chairmanship of Hon'ble Chief Minister of Maharashtra. SLBC alsoensures holding of quarterly meetings regularly to oversee the implementation of StateAnnual Credit Plans priority sector lending and Govt. sponsored schemes in the State.Apart from regular SLBC meetings various other meetings are also organized by SLBC tocoordinate between various member banks State Government Government Agencies ReserveBank of India NABARD and the Central Government. SLBC coordinates a network of more than15000 bank branches in the state.

In FY 2016-17 the State suffered due to continual draught in more than 16000 villagesand also onslaught of natural calamities the brunt of which is mostly borne byAgriculture and related activities. SLBC has always been very proactive in such calamitiesby issuing necessary guidelines in respect of relief measures organizing special meetingsand guiding the members whenever necessary.

As SLBC convener Bank of Maharashtra coordinated implementation of Pradhan Mantri JanDhan Yojana (PMJDY) in the State of Maharashtra. A total of 136 lakh accounts were openedin the State and the State was declared as saturated for the purpose of opening ofaccounts. The process of opening of accounts is continued.

S L B C Maharashtra received award for highest Adhar seeding of PMJDY accounts fromDepartment of Financial Service MOF New Delhi.


Scheme Particulars 2014-15 2015-16 2016-17
FI Plan No of Transactions by BCA (in lakhs) 20.80 55.27 109.75
Amt of transactions (in Cr) 602.08 2063.37 4702.81
PMJDY No. of PMJDY accounts(in lakhs) 22.96 32.19 42.28
Of Which Aadhaar Seeded 11.81 24.05 33.18
% OF Aadhaar Seeding 51.44 74.71 78.48
Of Which Mobile Seeding 10.74 23.22 32.16
% of Mobile Seeding 46.78 72.13 76.06
Balance in PMJDY A/c (in Cr) 209.86 531.97 932.05
Average Bal. per account actual 914 1653 2205
Zero Bal. PMJDY A/cs 13.43 13.61 16.34
BSBD Accounts Total BSBD Accounts 53.30 61.70 71.28
O/S Balance in BSBD A/c (in Cr) 516.50 893.57 1410.85
Average bal. per account (actual) 969 1448 1979
Commission Paid towards BC Services (in Crore) 5.30 11.95 23.07

The Bank has a full-fledged call centre with toll free number 18001022636 for redressalof PMJDY grievances.

The Financial Literacy Material has been prepared in vernacular languages and suppliedto all Branches/Bank Mitrs for supplying the same to accountholders during FLC camps.

Financial literacy camps are organized different schools in districts of Maharashtra.All skilling centers /ITI are mapped under financial literacy project

Bank has been awarded for excellent performance in the field of financial inclusionfrom prestigious institutes like IBA DFS and Economic Times.


8.1 Performance of Regional Rural Bank

Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the Bank havingits Head Office at Aurangabad Maharashtra State. Total no of branches as on 31.3.2017stood at 408 in its area of operation covering 17 out of 36 districts of MaharashtraState.

All 408 branches and controlling offices are now under CBS. MGB opened 11 new branchesduring this year.

Maharashtra Gramin Bank has crossed the benchmark of Rs.11000 Cr Total Business andRs.100 Cr Operating Profit by achieving Rs.11899 Cr Total Business and Rs.118.94 CrOperating Profit as on 31.03.2017 with a YOY growth rate of 30.75%

The percentage of CASA to total deposit is 58.94%.Operating profit of MGB is Rs. 118.94Crore (growth of 30.75%). During this year 2016-17 MGB has grown by 20.07% in totaldeposits and 11.32 % in advances.

Under Pradhan Mantri Jandhan Yojana surveys of all allotted 898 SSAs and 80 wards wereconducted for identification of households having no bank account. The Bank has coveredall allotted SSAs by engaging BCAs. Total 8.54 lakh accounts have been opened during thePMJDY campaign period and "RuPay ATM debit cards" have been issued to 7.45 lakhaccount holders. Maharashtra Gramin Bank has actively participated in the PMJJBY PMSBYand APY as well as the PMMY scheme declared by GoI DFS.

Bank has achieved most of the Targets under MOU_DAP for the financial year 2016-17 inthe major Key performance parameters.

1 Growth in Core Deposit (%) 10.78 20.07
2 Growth in Advances (%) 10.27 11.32
3 Recovery % June 2016 60.00 58.00
4 NPA Level 227.34 369.37
5 Growth in Agriculture Advances 15.63 13.76
6 CD Ratio 71.21 66.33
7 Increase in No. of SHGs credit linked 4530
8 Increase in No. of KCC Cards - 233726
9 Net Profit After Tax 42.25 42.19
10 Per Branch Profit (Lakh) 15.97 10.34
11 Per Employee Profit (Lakh) 4.19 2.91

8.2 The Maharashtra Executor & Trustee Company Pvt. Ltd.

Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO) the 100% subsidiary ofBank of Maharashtra was established in 1946 with an aim to provide services auxiliary tobanking such as:

> Consultation Drafting & Execution of will

> Consultation Drafting and Management of Private Trusts/Public Trusts

> Management of investments & house properties as attorney

> Guardianship of minor's property

> Consultation for sale/purchase of property

> Filing of I-Tax Returns for individuals

The Company is located at Pune having its branch units at Pune Vashi-Mumbai Thane andNagpur. It is managing about 1094 Public & Private Trusts. During the year additional27 Wills were added making total 1125 Will in its custody for execution.

At present the Company manages properties both movable and immovable of 69 clientsunder the Power of Attorney. The Company also acts as the Trustees in respect of 160policies under Married Women's Property Act and as Court appointed Guardian of minor'sproperty in 6 cases.

The net profit of METCO for F.Y. 2016-17 is Rs.46.92 lakh.


During the year 2016-17 the Bank has achieved various remarkable achievementsin the field of Official Language implementation:

The Town Official Language Implementation Committee Mumbai has secured Second Prizefrom the Rajbhasha Vibhag Ministry of Home Affairs Government of India for betterimplementation of Hindi at the hands of Hon. Governor Rajasthan State in a grand functionheld at Udaipur. Our Bank is the convenor Bank for the committee.

Our Bank was awarded Third Prize by the Mumbai based prestigious Institution‘Aashirvad' for better use of Hindi during the year.

31st meeting of the Maharashtra State Level Bankers' Committee (Rajbhasha)was held under the chairmanship of Shri R. P. Marathe Managing Director and CEO ofthe Bank. Bank of Maharashtra is the convenor for this top-level committee. Mr.Nagendra Singh Director Ministry of Home Affairs Government of India New Delhi waspresent in the meeting as the Chief Guest. Shri R. K. Gupta Executive Director ofBank of Maharashtra and Dr. Suneeta Yadav Deputy Director Ministry of Home AffairsGovt. of India were present as special guest on the occasion. Shri Manoj BiswalGeneral Manager (HRM & Rajbhasha) and Dr. Rajendra Shrivastava AGM (Rajbhasha) &Member Secretary of the Committee were also present. Top level executives and Hindiofficers of all the public sector banks attended the meeting in large numbers. On thisoccasion Online Rajbhasha Glossary "Rajbhasha Kosh" of Bank of Maharashtra wasinaugurated at the hands of Shri Nagendra Singh Chief Guest and Online HindiRoster of Bank of Maharashtra was inaugurated at the hands of Shri R. P. Marathe MD& CEO. Rajbhasha Shield and momento were presented to the members for betterimplementation of Hindi in their offices.

Hindi day function was arranged at Head Office Pune on 15th September 2016.Shri R. K. Gupta Executive Director of the Bank presided over the function. Dr.Mohan Agashe renowned Marathi and Hindi actor and social worker was the Chief Guest. ShriNarender Kabra General Manager was also present in the function. Winners of the AllIndia Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.

An All India Rajbhasha Seminar was organized in Kolkata for all the HindiOfficers of the Bank. Shri R. P. Marathe Managing Director & CEO of the Bankinaugurated the seminar. Shri Manoj Biswal General Manager HRM & Rajbhashareviewed the performance and guided all the participants. An All India Inter-Bank EssayCompetition was organized by our Bank and the winners of the competition were awarded atthe hands of Shri R. P. Marathe Managing Director & CEO of the Bank during theseminar.

Monthly Rajbhasha E-Magazine ‘Rajbhasha E-Pragati' is being regularlypublished every month. As a new initiative Rajbhasha E-Pragati in Brail script is alsopublished for the benefit of differently able employees of the Bank.

Bank of Maharashtra is the convenor Bank for Town Official Language ImplementationCommittee (TOLIC) in Mumbai Pune Solapur Latur & Jalgaon. Meetings of thesecommittees were held regularly during the year and various activities of the committeeswere organized throughout the year as per the schedule.

Committee of Parliament on Official Language visited our Aurangabad ZonalOffice Jamnagar branch Ahmedabad Zone and Chennai Zonal Office during the year andreviewed Official Language Implementation work of the Bank. The honorable members of theCommittee expressed their satisfaction regarding progressive use of Hindi and theimplementation of new initiatives by the Bank.

An All India Rajbhasha Seminar was organized by Syndicate Bank in Manipal in theMonth of January 2017. Shri Manoj Biswal General Manager HRM and Rajbhasharepresented our Bank in the seminar and addressed the executives of all the banks.

Our bank was awarded First Prize by Town official Language ImplementationCommittee Patna for better use of Hindi during the year. Reserve Bank of India is theconvenor for this committee.


Proactive steps were taken in view of the security requirements at the branches and forBank's staff and also for provisioning of physical security infrastructure at allbranches. This was done after analysis of the threat perception current crime scenariocrime pattern modus operandi of bank robberies the breaches of security and fireincidents besides equipping and training the security personnel and other bank staff tocounter any such eventuality.


The Directors confirm that in the preparation of the annual accounts for the year ended31.03.2017:

> The applicable accounting standards of the Institute of Chartered Accountants ofIndia have been followed along with proper explanation relating to material departuresif any;

> The accounting policies framed in accordance with the guidelines of the ReserveBank of India are consistently applied and proper disclosures are made for changes ifany;

> Reasonable and prudent judgment 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 theprofit of the Bank for the year.

> Proper and sufficient care was taken for maintenance of adequate accountingrecords in accordance with the provisions of applicable laws governing banks in India;and

> The accounts have been prepared on a going concern basis.


> During the year 2016-17 the following changes took place in the Board ofDirectors:

> Shri Ramdev L. Saydiwal ceased to be the Director of the Bank w.e.f. 20.07.2016.

> Shri Deendayal Agrawal was appointed as Director by the Central Government w.e.f.26.07.2016.

> Shri Sanjeev Jain ceased to be the Director of the Bank w.e.f. 18.08.2016.

> Shri Ravindra Prabhakar Marathe was appointed as MD & CEO of Bank ofMaharashtra by the Central Government w.e.f. 26.09.2016.

> Shri Sushil Muhnot ceased to be the CMD of the Bank w.e.f. 26.09.2016.

> Shri R. Athmaram ceased to be the Executive Director of the Bank by the CentralGovernment w.e.f. 31.10.2016.

> Shri Alekh C. Rout was appointed as Executive Director of the Bank by the CentralGovernment w.e.f. 31.03.2017.


AspertheSEBI(ListingObligationsandDisclosureRequirements) Regulations 2015 BusinessResponsibility Report (BRR) 2016-17 of the Bank has been hosted on the Bank's website Any member interested in obtaining a physical copy of same maywrite to the Company Secretary of the Bank.


The Board of Directors wishes to express sincere gratitude to the Government of Indiathe Reserve Bank of India the Securities and Exchange Board of India InsuranceRegulatory and Development Authority Indian Banks' Association and Stock Exchanges andCDSL for their valuable advice and support; to the customers and shareholders for theirpatronage; to the correspondents and associates for their cooperation and to all themembers of staff of "Mahabank Family" for their unstinted commitment andcontribution to the overall development of the Bank.

For and on behalf of the Board of Directors
Place : Pune (R.P. Marathe)
Date : 4 May 2017 Managing Director and CEO