The Board of Directors have pleasure in presenting the Bank's AnnualReport along with the audited statement of accounts and the cash flow statement for theyear ended 31st March 2021.
Overall Domestic Business of the Bank increased by 8.72% andreached at Rs. 913496 crore as on 31.03.2021 from Rs. 840209 crore as on 31.03.2020.
CASA deposits increased by 13.61% on Y-O-Y and stood at Rs.224669 crore SB deposits and CD deposits grew by 14.44% and 8.14% respectively. Share oflow cost deposits (CASA) in domestic deposits stood at 41.27% as on 31.03.2021.
Total deposits increased by 14.22% over last year and reached atRs. 551135 crore as on 31.03.2021 from Rs. 482539 crore as on 31.03.2020.
Gross Domestic Advances registered growth of 1.31 % reached atRs. 362361 crore as on 31.03.2021 from Rs. 357670 crore as on 31.03.2020. The domesticCD ratio stood at 65.75% as on 31.03.2021.
Share of RAM Advances to Total advances is 51.60% (i.e. Rs.186993 crore) as on 31.03.2021 as compared to 47.28% (i.e. Rs. 169110 crore) as on31.03.2020.
Priority Sector lending constitute 41.25% of Adjusted Net BankCredit and the share of Agricultural Credit to Adjusted Net Bank Credit was 17.50%.
Retail Credit grew by 11.87% from Rs. 60834 crore as on31.03.2020to Rs. 68058 crore as on 31.03.2021. The share of Retail Credit to TotalDomestic Credit was 18.78% as on 31.03.2021.
MSME Credit grew by 12.74% from Rs. 56092 crore as on31.03.2020to Rs. 63237 crore as on 31.03.2021. The share of MSME Credit to Total DomesticCredit was 17.45% as on 31.03.2021.
Overseas business has de-grown by 5.89% and stood at Rs. 124053crore as on 31.03.2021 as compared to Rs. 131817 crore as on 31.03.2020.
Total Foreign Deposit registered a growth of 4.13% reached atRs. 75978 crore as on 31.03.2021 from Rs. 72966 crore as on 31.03.2020.
The Overseas CD Ratio stood at 63.27% as on 31.03.2021. GlobalBusiness:
Gross Business of the Bank registered a growth of 6.74 %reached at Rs. 1037549 crore as on 31.03.2021 from Rs. 972026 crore as on 31.03.2020.
Total deposits increased to Rs. 627114 crore as on31.03.2021from Rs. 555505 crore as on 31.03.2020.
Gross Advances stood at Rs. 410436 crore as on 31.03.2021.
The Global CD Ratio stood at 65.45% as on 31.03.2021.
Operating Profit stood at Rs.10872 crore as on 31.03.2021against Rs. 11519 crore as on 31.03.2020.
Non Interest Income increased by 10.85% (Rs. 728 crore) reachedat Rs. 7441 crore as on 31.03.2021 on Y-O-Y basis.
The Bank registered Net Profit of Rs. 2160 crore for Current FY21 as against Net Loss of Rs. 2957 crore for previous FY 20.
Capital Adequacy Ratio stood at 14.93% as on 31.03.2021 asagainst 13.10% as on 31.03.2020.
Net Worth increased by 28.75% and reached at Rs. 27611 crore ason 31.03.2021 from Rs. 21445 crore as on 31.03.2020.
Book value per share is Rs. 84.24.
Gross NPA amount reduced by 8.15% (i.e. Rs. 5015 crore)reached at Rs. 56535 crore as on 31.03.2021 from Rs. 61550 crore as on 31.03.2020.
Gross NPA percentage reduced to 13.77% as on 31.03.2021 from14.78% as on 31.03.2020.
Net NPA amount reduced by 14.37% (i.e. Rs. 2058 crore) reachedat Rs. 12262 crore as on 31.03.2021 from Rs. 14320 crore as on 31.03.2020.
Net NPA percentage reduced to 3.35% as on 31.03.2021 from 3.88%as on 31.03.2020.
The Financial performance of the Bank for the year 2020-21 issummarised below:
| || || |
(Amount in crore)
|Particulars ||2019-20 ||2020-21 ||Growth (%) |
|Net Interest Income ||15257 ||14270 ||-6.47 |
|Non-Interest Income ||6713 ||7441 ||10.85 |
|Operating Expenses ||10451 ||10839 ||3.71 |
|Operating Profit ||11519 ||10872 ||-5.61 |
|Provisions / Contingencies ||14476 ||8712 ||-39.82 |
|Net Profit/ Loss ||-2957 ||2160 || |
|Earnings per share (Rs.) ||-9.10 ||6.59 || |
|Book Value per share (Rs.) ||65.43 ||84.24 ||20.75 |
|Return on Equity (%) ||-12.41 ||8.81 || |
|Return on Average Assets (%) ||-0.43 ||0.28 || |
Key Financial Ratios are presented below
|Particulars ||2019-20 ||2020-21 |
|Yield on Advances ||8.62 ||7.48 |
|Yield on Investments ||7.24 ||6.58 |
|Yield on Funds ||6.61 ||5.87 |
|Cost of Deposits ||4.40 ||4.10 |
|Cost of Funds ||4.23 ||3.81 |
|Net Interest Margin ||2.93 ||2.48 |
|Non Interest Income to Operating Expenses ||64.23 ||68.65 |
|Other Income to Average Working Fund ||0.97 ||0.98 |
|Operating Expenses to Average Working Fund ||1.63 ||1.57 |
|Staff Expenses to Average Working Fund ||0.96 ||0.94 |
|Other Operating Expenses to Average Working Fund ||0.67 ||0.63 |
|Asset Utilisation Ratio ||1.80 ||1.57 |
|Non Interest Income to Total Income ||13.68 ||15.49 |
|Non Interest Income to Net Income ||30.56 ||34.27 |
|Cost to Income Ratio ||47.57 ||49.92 |
During the current financial year Bank has received Rs. 3000 crorefrom Government of India for preferential issue of equity shares. The same is kept inShare Application Money Account pending allotment of Shares Bank has raised Rs. 1352crore by issue of Basel III compliant Additional Tier I bonds during the financial year.
During the financial year Bank has redeemed the following bonds byexercising call option
|Particulars ||Amount (Rs. in crore) ||Date of redemption |
|8.48 % Upper Tier II Bonds Series-VI ||1000 ||11.06.2020 |
|9.05% BOI IPDI Bonds -Series VI ||300 ||09.09.2020 |
As per Basel III framework the Bank's Capital Adequacy Ratiowas 14.93% which is higher than the regulatory requirement of 10.875 %.
Details of Capital Adequacy (BASEL III) are :
|Particulars || |
|CET1 CRAR ||29059 ||9.88% ||34690 ||11.51% |
|AT1 CRAR ||60 ||0.02 ||1352 ||0.45% |
|Tier I Capital ||29119 ||9.90% ||36042 ||11.96% |
|Tier II Capital ||9419 ||3.20% ||8949 ||2.97% |
|Total Capital ||38538 ||13.10% ||44990 ||14.93% |
|Risk Weighted Assets ||294189 || ||301305 || |
During the current financial year the Bank has implemented variousinitiatives for a Prompt Turn Around. A few of them are mentioned as under:
Concept of Area Managers and Star Prime implemented for beingmore customer focused and for business development recovery digitization at ground leveland re-activation of branches.
Strategy for re-balancing of portfolio in favour of Ram advances(Retail Agriculture and MSME) and reducing exposure to Corporate sector.
A non-discriminatory OTS Scheme called "MissionSamaadhan" formulated for quick resolution of NPAs.
"Swarna Dhara" - Gold Loans have been intensified.
"War Room" and "Watch room" formed in eachZone for Recovery NPA reduction and credit monitoring/trigger management.
On boarded the Contactless Platform (psbloansin59minutes. com)
Launched GST based financing to MSME Borrowers.
Actively participating in the Udyami Mitra Portal - marketplacefor new MSME loans.
Digi Branches: 254 Select Branches converted to Digi Branchesfor meeting the demands of Next Gen Customers.
Focus on Digitisation and Alternate Delivery Channels.
Activation of Growth Centers through Business Correspondents(BCs) called "Star Points" for expanding our outreach.
In line with the GOI initiative for cashless and digital nationPayment gateway solutions provided for various government PSU and autonomous organization(such as NHAI National Seeds Corporation RITES India Ltd BHEL etc).
Dashboard created for monitoring of accounts opened for twoproject (STRIVE NIESBUD) started by Ministry of Skill Development and Entrepreneurship.
VISA Signature Debit Card which is a contactless metal cardhaving multiple benefit for customers launched.
PM SVANidhi AtmaNirbhar loan to "Street Vender"launched.
Selected as an "Authorized bank for Yen credit transactionby GOI-MOF".
Star Anveshan- For Employee Engagement & Connect a specialSurvey is launched. Also various HR initiative like Job Family PMS already implemented.
End to end digitization of Retail Agri and MSME loan process isin progress.
Digital Document Execution rolled out with Retail Loan processmade automatic by e-signing and e-stamping.
additional specialized credit processing centres for RetailMSME and Agriculture advances being opened for improvement in credit quality as well asTAT.
Lead generation system upgraded with activation of leads throughall Digital channels viz. missed call SMS mobile banking website call center and alsointroduction of Analytics based offers to Retail and MSME clients.
Star Mahashakti- Upgradation/ migration of IT platform fromFINACLE 7 to FINACLE 10 is on advanced stage.
Web-based - Retail Online module: launched to improveproductivity and customer service by reducing turnaround time.
Cardless Cash withdrawal using UPI QR (QRCash) has been launchedby which our Bank Customers can withdraw cash from ATMs readily without the use of cards.
mobile and Internet Banking system upgraded with enhancedfeatures for better customer experience.
Debit Card Control App & Credit Card Control App have beenlaunched to enable customers to have a full control over the card activity.
Document management System (DMS) has been introduced forretrieval of documents and also helps us to store track manage and access our data in amore flexible and hassle free way.
COVID-19 related specific loans/working capital/scheme promotionhas been done using SMS and custom URL using our BOI website. It also helps us inmonitoring to generate leads and facilitate timely credit to interested customer.
BOI SEVA - OUR Chatbot is launched on website in Hindi andEnglish Version.
As an FI initiative seamless ICT Technology based basic bankingservices enabled in Rural & unbanked areas.
"Tech-driven Credit monitoring System" for tracking ofEarly Warning Signals' implemented during the year.
"Enterprise wide Fraud Risk management" framework forreal-time fraud monitoring is implemented during the year.
Rationalisation of Domestic/Overseas branches and ATMs beingundertaken to reduce the Operational Cost.
Special drive for opening of Government Accounts & Pensionaccounts among branches across the country.
Door Step Banking (DSB) through Universal Touch points (CallCentre 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 in various fields as under:
2nd most Trusted Brand Award in the Banks categoryawarded by the Reader's Digest Trusted Brand 2019.
In the India Banking Summit & Awards 2019 Bank of Indiaranked as Best Public 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 Bankof the Year for QR Cash.
SKOCH Order of merit AWARD 2019 in GOLD Category for BOI Mobile.
Bank of India has been conferred CSO-100 Award-2019 from IDGMedia for Implementation of Best Information Security Practices.
Bank has won Infosys Finacle Clients Innovation Award 2019.
Infosys Finacle Client Innovation Awards in the category"Product Innovation" for QRCash 2020.
Best Performing Public Sector Bank in APY campaign leadershipCapital 2.0 (Jan-2020) for MD &CEO.
Best Performing Public Sector Bank in APY campaign makers ofExcellence 3.0 (Nov-2019) for Executive Director.
Bank has been awarded Rajbhasha Kirti Puraskar (1St prize) is"B" Reagion for the year 2019-20 for the excelent performance in officiallanguage implementation.
2nd most Trusted Brand Award in the category ofBanks both by the Reader's Digest as well as the Economic Times for 2020.
Bank has won "APY Annual Award (2020-21)" for overallperformance for achieving per APY' target.
Bank has awarded "Best performer under PSU category forAmazing Achievers of APY (AAA)" by PFRDA during 1st February 2021 to 31st March 2021.
vision strategy and future outlook:
Expand the Bank's Retail Agriculture and MSME (RAM) lendingprofile by leveraging its existing customer base.
Continue to contain funding cost by sourcing low cost depositssuch as CASA.
Focus on improving asset quality and containing NPA levels.
Leverage technology to increase cross selling opportunitiesreduce cost and enhance customer experience.
Improving our Risk Management Systems to ensure longtermsustainability of our business.
DIRECTORS' RESPONSIBILITY Statement:
The Directors confirm that in the preparation of the annual accountsfor the year ended March 312021:
a) The applicable accounting standards have been followed along withproper explanation relating to material departures if any
b)The accounting policies framed in accordance with the guidelines ofthe Reserve Bank of India were consistently applied. Reasonable and prudent judgments andestimates were made so as to give a true and fair view of the state of affairs of the Bankat the end of the financial year and of the profit and loss of the Bank for the year endedMarch 31 2021.
c)Proper and sufficient care for the maintenance of adequate accountingrecords in accordance 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 werelaid down and that such internal financial controls are adequate and were operatingeffectively
f)Proper systems have been devised to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.