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Bank of India.

BSE: 532149 Sector: Financials
NSE: BANKINDIA ISIN Code: INE084A01016
BSE 00:00 | 27 May 46.95 1.35
(2.96%)
OPEN

46.60

HIGH

47.10

LOW

45.60

NSE 00:00 | 27 May 46.95 1.25
(2.74%)
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46.20

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47.15

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OPEN 46.60
PREVIOUS CLOSE 45.60
VOLUME 287703
52-Week high 86.95
52-Week low 40.45
P/E 5.66
Mkt Cap.(Rs cr) 19,266
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 46.60
CLOSE 45.60
VOLUME 287703
52-Week high 86.95
52-Week low 40.45
P/E 5.66
Mkt Cap.(Rs cr) 19,266
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bank of India. (BANKINDIA) - Chairman Speech

Company chairman speech

Dear Shareholders & Stakeholders

1.At the very outset I extend a very warm welcome to each one of youto the 25th Annual General Meeting of your Bank.

I have great pleasure in placing before you the Annual Report of yourBank for the year ended March 312021.

2.The year 2020-21 has been an unprecedented year in our living memory.The pandemic on global scale leading to health emergency and the lockdown that followedcaused loss of lives and livelihood for countless people. No nation and no economic sectorremained unaffected by the great pandemic. Moreover the duration and intensity ofpandemic was elongated by multiple mutant varieties of virus resurfacing in quicksuccession. This has brought in severe social and economic strain. More than economicloss it is the human loss and the psychological impact of the pandemic that has createdan environment of anxiety and uncertainty.

3.However human responses to the pandemic have been equally remarkableand the entire globe fought unitedly and relentlessly with great fortitude. As a resultwe now have multiple varieties of vaccines and vaccination drive is in full swing acrossall the countries. With coordinated and cooperative effort the Government and MonetaryAuthorities of several countries have resorted to liberal stimulus packages andconventional/unconventional monetary measures which have lessened the economic distressto a great extent. In this regard India has been a front runner.

4.The IMF in its recent World Economic Outlook has estimated globaloutput to have contracted by 3.3% in 2020 with the GDP of Advanced economies contractingby 4.7% and that of Developing economies by 2.2%. However on a positive note IMF hasforecast global growth to rebound to 6.0% in 2021.

5.Domestically GDP contracted by 7.3% during FY 2020-21 with deepnegative growth rate in the first half. The CPI inflation remained elevated above RBI'stolerance level of 6.0% for most of the period except for the last quarter because ofboth food and fuel inflation as well as core inflation.

6.The Banking industry witnessed higher deposits growth of 11.4% during2020-21 against 7.9% growth during 2019-20. On the otherhand advances growth remainedsubdued particularly during the first half of the year although it gathered pace towardslater part of the year. For the full year the bank credit registered a growth rate of5.6% against 6.1% during 2019-20. The G-Sec yield which was relatively high in the initialperiod of the year sobered down later but hardened later towards August 2020. Followingseveral measures by RBI yield moved downwards and during the second half it remainedrange bound except towards end when the yield again rose on account of higher borrowingtarget by the Government during 2021-22 increase in US treasury yield and rise In crudeoil prices.

7.Several monetary measures Including special dispensation meant foralleviating economic stress were announced by the RBI which the Bank implemented fullywith right earnest. Notably among them are-reduction in policy rates i.e. Repo rates andCash Reserve Ratio moratorium on term loan instalment and deferment of interestrepayment applying stand still clause refund of interest on interest for the moratoriumperiod liquidity support under TLTRO onetime restructuring scheme for the stressedsectors.

8.Apart from the RBI several stimulus packages were also announced bythe Government of India under Atma Nirbhar Bharat Abhiyan which have been major sourcesof financial support to the needy sectors. These are: ECLGS Subordinate debt schemes forMSME Sector PCGS for NBFCs PMSVANidhi for street vendors Schemes for promoting Agriinfra animal husbandry and fisheries etc.

9.The Banking Sector during FY 2020-21 displayed an overall improvementwith rise in profits and reduction in NPA ratios. For most of the PSBs there was rise inoperating profits and the banks posted Net profits against losses in 2019-20. The GrossNPA and Net NPA both amount and percentage wise also stood lower in March 2021; of coursewith the support from the RBI's measure of regulatory dispensation among others. Withcapital infusion by the Government and capital raising by banks the capital adequacyposition of PSBs also stood higher in March 2021 compared to March 2020.

10.Against the above backdrop let me present before you the highlightsof the Bank's performance and major initiatives taken by your Bank during the FY 2020-21.

• The Bank made turn around with a Net profit of Rs.2160 crore forthe full year FY21.

• Cost of Deposits (Global) came down from 4.57% during FY20 to4.10% in FY21 i.e. by 47 bps.

• CASA Deposits (Domestic) of the Bank rose by 13.61% YoY and CASAratio stood at 41.27% in March 2021.

• Advances to Retail Agriculture and MSME (RAM) segmentsincreased by 10.57% and its share improved from 47.15% in March 2020 to 51.60% in March2021. Retail Credit went up by 11.87% YoY and MSME by 12.74%.

• Gross NPAs came down from Rs.61550 crore in March 2020 to Rs.56535 crore in March 2021.

• Gross NPA ratio improved from 14.78% in March 2020 to 13.77% inMarch 2021. Net NPA ratio also improved from 3.88% in March 2020 to 3.35% in March 2021.

• Provision Coverage Ratio (PCR) stood higher at 86.24% in March2021 compared to 83.74% in March 2020.

• Credit Cost substantially improved from 4.06% in FY 20 to 1.80%in FY 21.

• Slippage ratio came down from 4.61% in March 2020 to 2.40% inMarch 2021.

• The Capital Adequacy Ratio improved to 14.93% against 13.10% inMarch 2020.

• However there has been drop in Net Interest Margin (NIM) from2.93% in FY20 to 2.48% in FY21 primarily because of higher growth in deposits reductionin MCLR and migration of accounts from MCLR to RBLR. The Bank's strategic focus during thecurrent year remains directed towards improved operative efficiency towards marginimprovement apart from sound asset quality.

11.Initiatives

Your Bank has been taking various initiatives for improvement invarious functional and operational areas so as to enhance competitive strength of theBank. Notably among them are:

• Launching of COVID Emergency Credit Support Schemes (CESS) forstressed sectors encompassing Corporate MSME Agriculture as well as personal loan schemeand sanctioning around Rs. 9000 crore under the various schemes.

• Rolling out of various financing Schemes under AtmanirbharBharat Abhiyan such as ECLGS and Subordinate debt Schemes for MSME sector PCGS for NBFCsfinancing under KCC saturation Agri Infrastructure Animal husbandry infra and MatsyaSampada Yojana and above all financing under PMSVANidhi Scheme.

• Door Step Banking (DSB) through Universal Touch Points (CallCentre Website and an App) introduced for providing banking services to the needycustomers.

• For improving credit appraisal credit quality and reducing TATspecial processing centres in Agriculture MSME and Retail segments are being increased byyour Bank. Already agriculture processing centres (Krishi Vikash Kendras) have beenincreased from 57 in March 2020 to 77 in March 2021 and Retail Business Centres from 60 to73. MSME processing centres which are 60 in March 2021 is being expanded to over 90.

• Tech-driven Credit Monitoring System for tracking of

‘Early Warning Signals' was rolled out during the year forensuring assets quality and building in safeguards.

• In the area of IT the upgradation of technology platform toFinacle 10 is in final stage and will be rolled out during 2021-22. E-platform is beinginstituted for providing our customers an end-to-end digital journey in lending processapart from enabling the Bank to widen customer outreach through improved MIS system anddata analytics

• Document Management System (DMS) by which execution storage andretrieval of contract documents are undertaken digitally has been rolled out in selectstates which will quicken the process of credit delivery.

• Banking being an essential service to the public at large thefield level staff are more prone to Covid-19 infections. Keeping this in view the Bankhas formulated comprehensive SOP/advisories for implementation not only to ensure safetyand well-being of the staff but also to ensure continuity of services. Apart from this inorder to alleviate the financial stress on account of infection and treatment the Bankhas formulated various employee oriented schemes and measures

• Your Bank in order to upgrade skill and nurture talent hasbeen adopting best HR practices. The Performance Management system which was rolled outearlier has been further improvised during the year. The ‘Employee Engagement &Connect' the survey on employee engagement (Star Anveshan) was concluded during the yearYour Bank has put in place a system of Succession Planning and Talent Management forproviding key managerial and leadership positions across all verticals

12.I wish to place on record the valuable contribution made by theDirectors on your Bank's Board including Shri G Padmanabhan the Non-Executive ChairmanShri C.G.Chaitanya Executive Director Shri D. Harish NonExecutive Director and Shri D.Sarkar Non-Executive Director who demitted office during the year 2020-21. The Bank alsothanks the Government of India Reserve Bank of India SEBI and other regulatoryauthorities who have provided excellent support and valuable guidance. On behalf of theBank and on my personal behalf I would like to thank our Business Associates CustomersShareholders and Stakeholders Financial Institutions and Correspondent Banks for theirtrust faith and active association. We look forward to their continued patronageguidance and support. Last but not the least I also place on record my appreciation forthe sincere and unstinted efforts put in by our committed staff members in the mosttrying circumstances and in the true spirit of frontline Covid Warriors.

With warm regards

A. K. Das

MD & CEO

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