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 2022.
PERfORManCE: Domestic Business:
? Overall Domestic Business of the Bank increased by 3.43% and reached atRs.944824 crore as on 31.03.2022 from Rs. 913496 crore as on 31.03.2021.
? CASA deposits increased by 9.26% on YOY and stood at Rs. 245464 crore. Share oflow cost deposits (CASA) in domestic deposits stood at 45.02% as on 31.03.2022. SavingBank deposit has registered a growth of 9.74% and reached at Rs. 215638 crore as on31.03.2022. Where as Current deposit registered a growth of 5.89% and reached at Rs.29826 crore as on 31.03.2022.
? Due to deliberate strategy of shedding of Bulk Deposits there was negativegrowth in total deposits. Total deposits stood at Rs. 550833 crore as on 31.03.2022 fromRs. 551135 crore as on 31.03.2021. ? Gross Domestic Advances registered growth of8.73% YoY reached at Rs. 393991 crore as on 31.03.2022 from Rs. 362361 crore as on31.03.2021. ? Share of RAM Advances to Total advances is 54.97% (i.e. Rs. 216567crore) as on 31.03.2022 as compared to 51.60% (i.e. Rs. 187181 crore) as on 31.03.2021.
? Priority Sector lending constituted 41.55% of Adjusted Net Bank Credit and theshare of Agricultural Credit to Adjusted Net Bank Credit was 18.00%.
? Retail Credit grew by 18.54% from Rs 68058 crore as on 31.03.2021 to Rs 80674crore as on 31.03.2022. The share of Retail Credit to Total Domestic Credit was 20.48% ason 31.03.2022.
? MSME Credit grew by 9.52% from Rs 63425 crore as on 31.03.2021 to Rs 69462crore as on 31.03.2022. The share of MSME Credit to Total Domestic Credit was 17.63% as on31.03.2022.
Overseas Business:
? Overseas business has increased by 12.92% and stood at Rs. 140086 crore as on31.03.2022 as compared to Rs. 124053 crore as on 31.03.2021.
? Total Foreign Deposit registered a growth of 1.43% reached at Rs.77 063 croreas on 31.03.2022 from Rs. 75978 crore as on 31.03.2021. ? The Overseas CD Ratiostood at 81.78% as on 31.03.2022.
Global Business:
? Gross Business of the Bank registered a growth of 4.56% reached at Rs. 1084910crore as on 31.03.2022 from Rs.1037549 crore as on 31.03.2021.
? Total deposits increased to Rs.627896 crore as on 31.03.2022 from Rs. 627114crore as on 31.03.2021.? Gross Advances registered a growth of 11.35% reached atRs. 457014 crore as on 31.03.2022. ? The Global CD Ratio stood at 72.78% as on31.03.2022. financial Parameters:
? Operating Profit stood at Rs.9988 crore as on 31.03.2022 as against Rs. 10273crore as on 31.03.2021. ? Non-Interest Income increased to Rs.7879 crore in FY'22from Rs.6842 crore as on 31.03.2021.
? The Bank registered Net profit of Rs.3405 crore in FY'22 as against Net Profitof Rs. 2160 crore for FY 21.
? Capital Adequacy Ratio stood at 17.04% as on 31.03.2022 as against 14.93% as on31.03.2021.
? Net Worth increased by 33.76% to 36933 crore from Rs. 27611 crore as on31.03.2021. ? Book value per share is Rs. 90.00. ? Gross NPA amount reducedby 23.97% (i.e. Rs. 10930 crore) reached at Rs 45605 crore as on 31.03.2022 from 56535crore as on 31.03.2021.
? Gross NPA percentage reduced to 9.98% as on 31.03.2022 from 13.77% as on31.03.2021.
? Net NPA amount reduced by 24.46% (i.e. Rs. 2410 crore) reached at Rs.9852 croreas on 31.03.2022 from Rs. 12262 crore as on 31.03.2021.
? Net NPA percentage reduced to 2.34% as on 31.03.2022 from 3.35% as on 31.03.2021.
? The Financial performance of the Bank for the year 2021-22 is summarized below:
(Amount in crore)
| Particulars | 2020-21 | 2021-22 | Growth (%) |
| Net Interest Income | 14270 | 14062 | -1.46 |
| Non-Interest Income | 6842 | 7879 | 15.16 |
| Operating Expenses | 10839 | 11952 | 10.27 |
| Operating Profit | 10273 | 9988 | -2.77 |
| Provisions / Contingencies | 8112 | 6584 | -18.84 |
| Net Profit/ Loss | 2160 | 3405 | 57.63 |
| Earnings per share (Rs.) | 6.59 | 8.84 | 34.14 |
| Book Value per share (Rs.) | 84.24 | 90.00 | 6.84 |
| Return on Equity (%) | 8.81 | 10.55 | |
| Return on Average Assets (%) | 0.28 | 0.43 | |
Key financial Ratios are presented below
(Percentage) (%)
| Particulars | 2020-21 | 2021-22 |
| Yield on Advances | 7.48 | 6.76 |
| Yield on Investments | 6.58 | 6.32 |
| Yield on Funds | 5.87 | 5.21 |
| Cost of Deposits | 4.10 | 3.69 |
| Cost of Funds | 3.81 | 3.29 |
| Net Interest Margin | 2.48 | 2.36 |
| Non-Interest Income to Operating | 63.12 | 65.92 |
| Expenses | | |
| Other Income to Average Working Fund | 0.90 | 1.00 |
| Operating Expenses to Average Working | 1.57 | 1.64 |
| Fund | | |
| Staff Expenses to Average Working | 0.94 | 0.97 |
| Fund | | |
| Other Operating Expenses to Average | 0.63 | 0.67 |
| Working Fund | | |
| Asset Utilisation Ratio | 1.49 | 1.37 |
| Non-Interest Income to Total Income | 14.42 | 17.14 |
| Non-Interest Income to Net Income | 32.41 | 35.91 |
| Cost to Income Ratio | 51.34 | 54.48 |
CaPITaL
During the financial year Bank has raised equity capital as unde r:
| Particulars | amount (Rs. in crore) | Date of allotment |
| Preferential Issue to Government of India @ Rs.71.23 per share (including share premium). GOI had deposited this amount on 31.03.2021 and the same was kept as Share Application Money pending allotment. | 3000 | 11.06.2021 |
| Qualified Institutions Placement @ Rs.62.89 per share (including share premium) | 2550 | 31.08.2021 |
Bank has raised Rs.1800 Crore by issue of Basel III compliant Tier II bonds on30.09.2021. During the financial year Bank has redeemed the following bonds by exercisingcall option.
| Particulars | amount | Date of |
| | (Rs. in crore) | redemption |
| 8.57 % | Tier II Bonds Series- | 1500 | 07.07.2021 |
| XIII | | | |
| 8.00% Tier II Bonds Series | 1000 | 25.03.2022 | |
| XIV | | | |
CaPITaL aDEQUaCY:
? ?As per Basel III framework the Bank's Capital Adequacy Ratio was 17.04% whichis higher than the regulatory requirement of 11.5 %. ? ?Details of Capital Adequacy(BASEL III) are : (Rs. in crore)
| Particulars | BaSEL-III |
| 31.03.2021 | 31.03.2022 |
| CET1 CRAR | 34690 | 11.51% | 44347 | 14.02% |
| AT1 CRAR | 1352 | 0.44% | 1352 | 0.44% |
| Tier I Capital | 36042 | 11.96% | 45699 | 14.44% |
| Tier II Capital | 8949 | 2.97% | 8206 | 2.59% |
| Total Capital | 44990 | 14.93% | 53905 | 17.04% |
| Risk Weighted | 301305 | | 316395 | |
| Assets | | | | |
BUSInESS InITIaTIvE:
? ?"area Managers" office structure rationalized for better connect forbusiness development and better decision making. ? ?Strategy for more focus on"CaSa" and "RaM advances" (Retail Agriculture and MSME)and rationalizing exposure to corporate sector.
? ?Web-based - Retail Online Module launched to improve productivity and customerservice by reducing turnaround time. ? ?"Swarna Dhara" Gold Loanshave been intensified with attractive features.
? ?Special Schemes like Star Kisan Ghar Star Bio Energy Scheme Star KisanSahayata Loan has been launched in
Agriculture segment.
? ?"End to end digitization" of Retail Agri and MSME loan process is inadvance stage.
? ?"Contactless Platform (psbloansin59minutes.com)" - for quicksanction and disbursement.
? ?Co-lending tie-up with MaS financial Services has been initiatedsuccessfully.
? ?GECL Extension Scheme launched by GOI for MSME segment.
? ?Recovery mechanism through a host of OTS schemes like
"Intensive Recovery Day" "Branch adalat" monthly megaE-auction and involving in-house staff such as "Sanjeevani""Saksham-2" put in place.
? ?SME City Centre increased from 58 to 91 and centralized processing of allproposals of Rs.10 Lakhs and above is being done smoothly.
? ?TReDS (Trade Receivables Discounting system) platform have been used moreextensively to garner business growth.
? ?"Launched Small Town Big Support" campaign for Loan Guarantee Schemefor Covid Affected Sectors.
? ?"Shining Star Campaign" launched for generation of leads (convertible)& sanction of loans under Star Welcome Offer.
? ?E-PLaTfORM solution is being implemented for Straight Through Origination andprocess of all Banking products.? ?Non-discriminatory and Non-discretionary OTSSchemes namely "Star Sanjeevani" and "BOI OTS 2021"were made more customer friendly with greater reach for quick resolution of NPAs.
? ?Star Mahashakti- Upgradation/ migration of IT platform from fInaCLE 7 to fInaCLE10 has been successfully done.
? ?"Tech-driven Credit Monitoring System" for tracking of "EarlyWarning Signals" effectively used for SMA and SASCL management. ? ?"SMaautomation process" for managing SMA portfolio of the Bank through automatedsystem is under process.
? ?Star CPSU & Star GECL Scheme launched for catering to the requirements ofCPSUs. ? ?Special schemes for extending financial assistance for augmentation ofthe Ethanol Production Capacity.? ?"Enterprise wide fraud RiskManagement" framework for real-time fraud monitoring is being effectively usedfor fraud monitoring and management
? ?Document Management System (DMS) has been made live and is being usedeffectively for retrieval of documents and storing tracking managing and accessing ourdata in a more flexible and hassle freeway. ? ?"MissCallPay" is digitalpayment offline solution that provides all the functionality of UPI based mobile paymentsover a feature phone using Missed Call. It does not have any dependency on internetconnection. Hence it is suitable for rural and urban under-served population of India.
? Digi Locker has been launched. It is an online service provided by Ministry ofElectronics and IT (MeitY) Government of India under its Digital India initiative.
? Security Solutions- Bank has procured and implemented security solutions forstrengthening ecosystem of the bank as per guidelines on "Cyber Security frameworkin Banks".
? Cheque Deposit Kiosks- Bank has deployed Cheque Deposit Kiosks for providingfacility to the customers to deposit cheques in the self-operated Kiosks withoutintervention of bank staff.
? Bank has completed successfully all test scenarios for new tax collectionsystem TIn 2.0 which is soon going to be launched by CBDT Dept. of Revenue MoF.
? Bank has launched new Merchant app with various digital facilities.
? Bank has announced fY 22-23 to be the year of digitalization.
? Star Hunt scheme- Interested Officers have an opportunity to work in their chosenvertical and their selection is based on written examination and interview. Afterselection such officers are trained in the vertical they are selected for and are postedin identified fields.
? Development Centre is being carried out for Officers in Scale IV V and VI toassess the identifiedcompetencies and use them for benefit of the bank.
? Additional national Banking Group and Zonal Offices created to givegood service to customers and more business growth aWaRDS:
? ?Bank of India received ‘HR Leadership Award 2021 'by World HRD Congress??SKOCH AWARD 2021 SILVER in Excellence in Technology Category for "DocumentManagement System".
? ?Forbes recognized "Bank of India" as one of the World's Best Employerin 2021.
? ?Bank has won Leadership Capital 3.0 APY award of excellence "BestPerforming Managing Director" by our Respected MD & CEO Shri Atanu Kumar Das.
? ?BFSI Excellence Awards 2021 for the Best Cyber Security Initiative in bankingcategory.
? ?Bank has won Infosys Finacle Client Innovation Awards in the category"Product Innovation" for QRCash 2020.
? ?Bank of India has been awarded Best MSME BanK of the Year Award forFY20-21 by SME Chamber of India.
? ?Bank of India has been awarded with "Best MSME Bank-Runner Up""Best Branding-Winner" and "Best Bank for promoting SocialSchemes – Winner" in "MSME Banking Excellence awards 2021"by Chamber of Indian MSME.? ?Bank of India has received appreciation Letter forLending under MUDRa Scheme in FY21-22 by Govt. of India.
? ?Bank of India has been awarded "Dr. ambedkar Business Excellence award"for lending to SC Entrepreneurs awarded by IFCI Venture Capital Ltd.
? ?Bank of India has been awarded Runners-Up award for "The Best fintechCollaboration" in IBA's 17th Annual Banking
Technology Conference and Awards: 2020-21.
? ?Bank has received AWARD OF EXCELLENCE in PFRDA
APY Campaign LEADERSHIP CAPITAL 4.0 from PFRDA for good performance.
? Bank has won AWARD OF EXCELLENCE from PFRDA for good performance in PFRDA APYCAMPAIGN MAKERS OF EXCELLENCE 5.0.
VISION STRATEGY AND FUTURE OUTLOOK:
? ?Expand the Bank's Retail Agriculture and MSME (RAM) lending profile byleveraging its existing customer base.? Continue to contain funding cost bysourcing low cost deposits such as CASA.
? Focus on improving asset quality and containing NPA levels. ? Leveragetechnology to increase cross selling opportunities reduce cost and enhance customerexperience. ? Improving Risk Management Systems to ensure long-term sustainabilityof our business.
DIRECTORS' RESPOnSIBILITY STaTEMEnT:
The Directors confirm that in the preparation of the annual accounts for the year endedMarch 31 2022: 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 judgements and estimates were made so as to give a trueand fair view of the state of affairs of the Bank at the end of the financial year and ofthe profit and loss of the Bank for the year ended March 31 2022. c) Proper andsufficient care for the maintenance of adequate accounting records in accordance with theprovisions of applicable laws governing banks in India for safeguarding the assets of theBank and for preventing and detecting fraud and other irregularities d) Annual accountshave been prepared on a going concern basis e) Internal financial controls system to befollowed by the Bank were laid down and that such internal financial controls are adequateand were operating effectively f) Proper systems have been devised to ensure compliancewith the provisions of all applicable laws and that such systems were adequate andoperating effectively.
