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Bank of India.

BSE: 532149 Sector: Financials
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OPEN 44.80
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Mkt Cap.(Rs cr) 14,779
Buy Price 45.10
Buy Qty 3100.00
Sell Price 45.10
Sell Qty 950.00
OPEN 44.80
CLOSE 44.70
VOLUME 711831
52-Week high 79.80
52-Week low 30.45
Mkt Cap.(Rs cr) 14,779
Buy Price 45.10
Buy Qty 3100.00
Sell Price 45.10
Sell Qty 950.00

Bank of India. (BANKINDIA) - Director Report

Company director report

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 2020.


Domestic Business:

0 Overall Domestic Business of the Bank increased by 12.04% reached at Rs. 840209crore as on 31.03.2020 from Rs. 749920 crore as on 31.03.2019.

0 CASA deposits increased by 8.79% on Y-O-Y and Stood at Rs. 197751 crore SB depositsand CD Deposits grew by 8.39% and 11.53% respectively. Share of low cost deposits (CASA)in domestic deposits stood at 41.50% as on


0 Total Domestic deposits of the Bank increased by 14.40% reached at Rs. 482539 croreas on 31.03.2020 from Rs. 421783 crore as on 31.03.2019.

0 Gross Domestic Advances registered a growth of 9.00% from Rs. 328137 crore as on31.03.2019 to Rs. 357670 crore as on 31.03.2020. The domestic CD Ratio stood at 74.12% ason 31.03.2020.

0 Share of RAM Advances to Total advances is 47.28% (i.e. Rs. 169110 crore) as on31.03.2020 as compared to 49.19% (i.e. Rs. 161425 crore) as on 31.03.2019.

0 Priority Sector lending constituted 40.81% of Adjusted Net Bank Credit and the shareof Agricultural Credit to Adjusted Net Bank Credit was 17.10%.

0 Retail Credit grew by 7.69% from Rs 56492 crore as on

31.03.2019 to Rs. 60834 crore as on 31.03.2020. The share of Retail Credit to TotalDomestic Credit was 17.01% as on


0 MSME Credit grew by 2.74% from Rs 54595 crore as on

31.03.2019 to Rs 56092 crore as on 31.03.2020. The share of MSME Credit to TotalDomestic Credit was 15.68% as on


Overseas Business:

0 Overseas business has de-grown by 14.29% and stood at Rs. 131817 crore as on31.03.2020 as compared to Rs. 153803 crore as on 31.03.2019.

0 Gross Foreign Advances registered a growth of 7.54% from Rs. 54723 crore as on31.03.2019 to Rs. 58852 crore as on


0 The Overseas CD Ratio stood at 80.66% as on 31.03.2020.

Global Business:

0 Gross Business of the Bank registered a growth of 7.56% from Rs. 903723 crore as on31.03.2019 to Rs. 972026 crore as on 31.03.2020.

0 Total Global deposits increased to Rs. 555505 crore as on 31.03.2020 from Rs.520862 crore as on 31.03.2019.

0 Total Global Gross Advances increased to Rs. 416521 crore as on 31.03.2020 from Rs.382860 crore as on 31.03.2020.

0 The Global CD Ratio stood at 74.98% as on 31.03.2020.

Financial Parameters:

0 Operating profit increased by 42.34% (Rs. 3426 crore) reached at Rs.11519 crore ason 31.03.2020 on Y-O-Y basis.

0 Net loss stood at Rs. 2957 crore as on 31.03.2020 from Rs. 5547 crore as on31.03.2019.

0 Capital Adequacy Ratio stood at 13.10% as on 31.03.2020 from 14.19% as on 31.03.2019.

0 Net Worth stood at Rs. 21505 crore as on 31.03.2020 from Rs. 26152 crore as on31.03.2019.

0 Book value per share is Rs.65.61.

0 Gross NPA amount increased by 1.47% (i.e. Rs. 889 crore) reached at Rs. 61550 croreas on 31.03.2020 from Rs. 60661 crore as on 31.03.2019.

0 Gross NPA percentage reduced to 14.78% as on 31.03.2020 from 15.84% as on 31.03.2019.

0 Net NPA amount reduced by 25.15% (i.e. Rs. 4809 crore) reached at Rs. 14311 croreas on 31.03.2020 from Rs. 19119 crore as on 31.03.2019.

0 Net NPA percentage reduced to 3.88% as on 31.03.2020 from 5.61% as on 31.03.2019.

The Financial performance of the Bank for the year 2019-20 is

summarised below:

Particulars 2018-19 2019-20 Growth (%)
Net Interest Income 13658 15257 11.71
Non-Interest Income 4659 6713 44.09
Operating Expenses 10697 10451 -2.30
Operating Profit 8092 11519 42.34
Provisions / Contingencies 13639 14476 6.13
Net Profit/ Loss -5547 -2957
Earnings per share (Rs.) -29.79 -9.10
Book Value per share (Rs.) 94.75 65.61
Return on Equity (%) -24.57 -12.41
Return on Average Assets (%) -0.84 -0.43

Key Financial Ratios for the year 2019-20 are presented below:

Particulars 2018-19 2019-20
Yield on Advances 8.23 8.62
Yield on Investments 7.40 7.24
Yield on Funds 6.60 6.61
Cost of Deposits 4.50 4.57
Cost of Funds 4.39 4.23
Net Interest Margin 2.56 2.93
Non Interest Income to Operating Expenses 47.97 64.23
Non Interest Income to AWF 0.77 0.97
Operating Expenses to Average Working Fund 1.73 1.63
Staff Expenses to Average Working Fund 0.98 0.96
Other Operating Expenses to Average Working Fund 0.76 0.67
Asset Utilisation Ratio 1.31 1.80
Non Interest Income to Total Income 11.18 13.68
Non Interest Income to Net Income 27.31 30.56
Cost to Income Ratio 56.93 47.57


During the year Bank has raised fresh capital of Rs.4638.00 corers by issue of thefollowing capital instruments. Bank has not raised any Bonds during the financial year.

Date of issue No. of shares Price Amount (Crores) Details
20.04.2019 517633928 89.60 4638.00 Preferential issue to the Govt of india

During the year ended March 31 2020 Bank redeemed following bonds by exercising calloption

Series ' in Crore Date of redemption
Upper Tier II - Series III 500.00 28.07.2019
Upper Tier II - Series IV 500.00 28.08.2019
IPDI- Series V 325.00 09.12.2019
Upper Tier-II Bonds Series V 1000.00 20.01.2020


0 As per Basel III framework the Bank's Capital Adequacy Ratio was 13.10% which ishigher than the regulatory requirement of 10.875%

0 Details of Capital Adequacy (BASEL III) are :





CET1 CRAR 33683 11.01% 29059 9.88%
AT1 CRAR --- --- --- ---


Tier I Capital 33870 11.07% 29119 9.90%
Tier II Capital 9534 3.12% 9419 3.20%
Total Capital 43404 14.19% 38538 13.10%
Risk Weighted Assets 305953 294189

Business Initiatives:

During the current year the Bank has implemented various initiatives

for a Prompt Turn Around. A few of them are mentioned as under:

• Concept of Area Managers and Star Prime implemented for being morecustomer focused and for business development recovery digitization at ground level andre-activation of branches.

• Strategy for re-balancing of portfolio in favour of RAM advances (RetailAgriculture and MSME) and reducing exposure to Corporate sector.

• A non-discriminatory OTS Scheme called “Mission Samaadhan” formulatedfor quick resolution of NPAs.

“Swarna Dhara” - Gold Loans have been intensified.

• Refurbishing select branches as “Star Digi” branches with highend digitalized services for tech savvy customers.

“War Room” and “Watch room” formed in eachZone for Recovery NPA reduction and credit monitoring/trigger management.

Tech-driven Credit Monitoring System for tracking of ‘Early WarningSignals' under implementation.

• On boarded the Contactless Platform (psbloansin59minutes. com)

• Launched GST based Financing to MSME Borrowers.

• Actively participating in the Udyami Mitra Portal -

marketplace for new MSME loans.

Digi Branches: 255 Select Branches converted to Digi Branches for meetingthe demands of Next Gen Customers.

Star Mahashakti- Up gradation of IT platform from FINACLE 7 to FINACLE1• .

Centralised processing centres: New 11 RBCs and 28 new SME City Centresopened and separate Gold Loan cells formed in all Zones within the existing infrastructureto increase RAM business.

• Selected as an “Authorized bank for Yen credit transaction

by GOI-MOF” for Yen credit transaction.

• Focus on Digitisation and Alternate Delivery Channels.

• Activation of Growth Centers through Business Correspondents (BCs) called “StarPoints” for expanding our outreach.

• Launched Retail loans on Tab application to augment new Retail businessand generation of leads in retail loans.

• Creation of Stressed Asset Management Vertical (SAMV)

for faster resolution of Stressed assets/NPAs.

“Borrower Health Profile (BHP)” built-up for Proactive CreditMonitoring with dedicated manpower.

Digitalizing the process of MSME Credit to improve the TAT andefficiency.

Cardless Cash withdrawal using UPI QR (QRCash) has

been launched for Customers to withdraw cash from ATMs readily without the use ofcards.

Mobile and Internet Banking system upgraded with enhanced features forbetter customer experience.

Document management system (DMS) has been introduced for retrieval ofdocuments and also helps us to store track manage and access our data in a more flexibleand hassle free way.

COVID-19 related specific loans/working capital/scheme promotion has beendone using SMS and custom URL using our BOI website. It also helps us in monitoring togenerate leads and facilitate timely credit to interested customer.

0 BOI SEVA - OUR Chatbot is launched on website in English version on 7/9/2019.Hindi version of the Chatbot has also since been made available.

0 As an FI initiative seamless ICT Technology based basic

banking services enabled in Rural & unbanked areas.

“Enterprise wide Fraud Risk Management” framework for real-timefraud monitoring is under process.

Rationalisation of Domestic/overseas branches and

ATMs being undertaken to reduce the Operational Cost.

• Special drive for opening of Government Accounts & Pension accounts amongbranches across the country.

Debit Card Control App & Credit Card Control App have been launchedto enable customers to have a full control over the card activity.

Customer Outreach Initiative' conducted in 18 districts and participatedin more than 200 districts for augmenting credit off-take and expansion of financialinclusion and digital banking.

Door Step Banking (DSB) through Universal Touch points

(Call Centre Website and an App) has been introduced for providing banking services tocustomers from the Agents engaged by the Bank.


The Bank has been conferred Awards during FY 2019-20 in various fields as under:

• Bank of India has won the second Most Trusted Brand

Award in the Banks category awarded by the Reader's Digest Trusted Brand 2019.

• In the India Banking Summit & Awards 2019 Bank of India ranked as BestPublic Sector Bank 2019 by Synnex Group.

Best Performing Public Sector Bank in APY Formation Day Campaign(FY2019-20) by PFRDA.

• ETBFSI Excellence Awards 2019- Most Innovative Large Size Bank of theYear for QR Cash.

• SKOCH ORDER-OF-MERIT AWARD 2019 in GOLD Category for BOI Mobile.

• SKOCH Award 2019 in SILVER Category for BOI Mobile.

• Bank of India has been conferred CSO-100 Award-2019 from IDG Media for Implementationof Best Information Security Practices.

0 Bank has won Infosys Finacle Clients Innovation Award



• Expand the Bank's retail agriculture and MSME lending profile by leveraging itsexisting customer base.

• Continue to contain funding cost by sourcing low cost deposits such as CASA.

• Focus on improving asset quality and containing NPA levels.

• Leverage technology to increase cross selling opportunities reduce cost andenhance customer experience.

• Improving our risk management systems to ensure long-term sustainability of ourbusiness


The Directors confirm that in the preparation of the annual accounts

for the year ended March 312020:

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 31


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.