Your Directors have pleasure in presenting the Annual Report of the
Bank with the audited Balance Sheet Profit & Loss Account and the
Report on Business and Operations for the year ended March 31 2021.
1. MANAGEMENT DISCUSSION AND ANALYSIS
1.1 Economic and Banking Scenario 2020-21
The global economy witnessed an unprecedented economic downturn in FY 2020-21 due toCovid-19 pandemic. The lockdowns and social distancing norms have reduced the growthmomentum. Global economic output was estimated to fall by 3.5 percent in 2020. Indianeconomy also witnessed contraction in gross domestic product (GDP) for the first timesince independence. Calibrated fiscal and monetary support was provided cushioning thevulnerable during the lockdown and boosting consumption and investment during theunlocking. A favorable monetary policy ensured abundant liquidity and immediate relief todebtors while unclogging monetary policy transmission. India's GDP due to pandemiccontracted by
23.90% in Q1 and 7.50% in Q2 of FY21. As the first wave of
Covid-19 pandemic eased and economy was slowly opened up India's GDP grew by 0.40percent YoY in Q3 mainly attributed to improvement in Consumer Spending GovernmentCapital Expenditure and expansion in Construction Sector.
Retail inflation firmed up to 6.16 percent in FY21 side disruptions caused by thepandemic. However it reduced to 4.29 percent in April 2021 owing to decrease in foodprices. Monetary policy remained accommodative during the year. RBI policy repo rate wascut by 115 bps and liquidity support by
RBI during 2020-21 was significantly enhanced. Meanwhile year on year bank creditgrowth (5.6 percent) continued to lag behind deposit growth (11.4 percent) in FY21.
1.2 Outlook for 2021-22
Multiple vaccine approvals and the launch of vaccination drives in many countries haveraised hopes for less impact of the pandemic. WEO forecast suggest stronger-than-projectedmomentum on average across regions in the second half of 2020. The sizable fiscal supportannounced for 2021 in some countries including most recently in the United States andJapan will help lift economic activity among advanced economies. With respect to Indianeconomy the larger than expected magnitude of Covid-19 second wave has posed a seriousthreat to the faster recovery of economic activities. As of now the outlook is hazy andwill largely depend on how the second wave pans out. With the Covid-19 second wavestarting to wane and availability of sufficient number of vaccines from
September 2021 growth in second half of FY22 is likely to pick up. Indian GDP isexpected to grow around 10 percent in FY22 and RBI is likely to continue with itsaccommodative stance.
2. PERFORMANCE HIGHLIGHTS 2020-21 i. Total Business of the bank hasincreased from
Rs.244955 crore as on 31.03.2020 to Rs.281659 crore as on 31.03.2021. Business ofthe Bank showcased annual growth of 14.98%. ii. Total deposits of the bank increased fromRs.150066 crore as on 31.03.2020 to Rs.174006 crore as on 31.03.2021. Total depositshave showcased annual growth of 15.95%.
iii. CASA deposits have increased form Rs.75475 crore as on 31.03.2020 to Rs.93945crore as on 31.03.2021 showcasing annual growth of 24.47%.
iv. Gross advances have increased from Rs.94889 crore as on 31.03.2020 to Rs.107654crore as on 31.03.2021.
Gross Advances have shown year on year growth of 13.45%. v. Operating Profit increased39.01% to Rs.3957.68 crore in year ended 31.03.2021 from Rs.2847.06 crore in year ended31.03.2020. During the same period Net Profit increased 41.61% to Rs.550.25 crore fromRs.388.58 crore.
2.1 Sectoral Deployment of Credit
|Percentage to total O/s ||O/s as on 31.03.2021 (in Rs.Crore) ||Percentage to total O/s ||O/s as on 31.03.2020 (in Rs.Crore) ||Percentage to total O/s |
|Industry Of which ||34129.68 ||31.70% ||30113.57 ||31.74% |
|i. Infrastructure ||14347.11 ||13.33% ||7370.82 ||7.77% |
|ii. Chemicals & Chemical Products ||1121.67 ||1.04% ||1430.82 ||1.51% |
|iii. Petroleum ||588.66 ||0.55% ||688.76 ||0.73% |
|iv. Iron and Steel ||859.89 ||0.80% ||1609.59 ||1.70% |
|v. NBFCs and Trading ||9232.69 ||8.58% ||10759.03 ||11.34% |
|vi. Engineering ||1245.15 ||1.16% ||2336.55 ||2.46% |
|vii. Construction ||80.94 ||0.08% ||1.78 ||0.00% |
|viii. Other Industries ||6653.57 ||6.18% ||5916.35 ||6.24% |
|Agriculture ||16201.98 ||15.05% ||14384.66 ||15.16% |
|MSME ||23132.87 ||21.49% ||17163.92 ||18.09% |
|Housing ||17909.07 ||16.64% ||14915.71 ||15.72% |
|Education ||1287.66 ||1.20% ||1227.70 ||1.29% |
|Exports ||1310.99 ||1.22% ||1167.11 ||1.23% |
|Commercial Real estate ||1508.58 ||1.40% ||1611.34 ||1.70% |
|Gross Advances ||107653.77 || ||94888.98 || |
2.2 Asset 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.
Twelve Asset Recovery Branches (ARBs) have also been set up across the Bank's Zones forlarge NPA accounts more particularly where legal actions are in progress so as to makefocused follow up.
Further Bank has established Stressed Assets
Management Vertical by way of a separate department at Head Office under which Bank hasstarted 4 (four)
Stressed Assets Management (SAM) branches in Delhi Mumbai Hyderabad and Pune whereNPAs with balance of Rs.5 crore and above are being monitored. Focused follow up isundertaken to improve NPA recovery.
Loan Tracking Cell has been established where
Bank undertakes telephonic follow up on daily basis with borrowers of stressed accounts/ slippages and repayment of over dues is ensured. This has resulted in improving recoveryand upgradation of NPAs.
The Bank has also set up separate Cells at Head Office for identification of WilfulDefaulters and gearing up actions under DRT/ SARFAESI Acts.
Bank has been implementing suo-moto non-discriminatory and non-discretionary One TimeSettlement (OTS) schemes. During 2020-21 the Bank introduced following OTS schemes:
a. Maha Rahat Yojana 2020-21: Scheme for the settlement of NPA accounts inDoubtful-I
Doubtful-II Doubtful-III Loss and TWO category having Ledger Balance up to Rs.1.00crore as of 31.03.2020. This scheme was effective from 01.06.2020.
b. Maha Samadhan Yojana 2020-21: Scheme for the settlement of NPA accountsunder:
i. Doubtful-I Doubtful-II Doubtful-III Loss and TWO category having Ledger Balanceabove Rs.1.00 crore and up to 25.00 crore as of 31.03.2020.
ii. Doubtful-III Loss and TWO category having Ledger Balance above Rs.25.00 crore andup to 50.00 crore as of 31.03.2020.
Bank has also made intensive follow up with the defaulting borrowers through visitsletters notices
Recovery Camps Lok Adalats Mahabank Adalats actions under SARFAESI / DRT Act.Services of Recovery Agents / Resolution Agents are engaged so as to have an earlyresolution. The Bank has also initiated action under the provisions of Insolvency &Bankruptcy Code 2016 against various large NPA borrowers.
Position of Non- Performing Assets was as under:
2.3 Foreign Exchange Business
Currently the bank has 36 "B" Category Branches across the country cateringto the international business needs of the customers of the Bank apart from Treasury andInternational
Banking Branch (TIBB) at Mumbai as "A" category Branch. The
Merchant Business for FY 2020-21 stood at Rs.30451.46 crore. The performance duringthe year 2020-21 can be seen below:
|Particulars ||2020-21 ||2019-20 ||Percentage of (+/-) |
|Total FEX Business Turnover ||634389.59 ||568236.68 ||11.64% |
|Merchant Business || || || |
The breakup of Investments into SLR & Non-SLR investments is given below:
The Gross Investments as on 31.03.2021 stood at
Rs.68646.70 crore of which Rs.52196.56 crore are SLR securities and Rs.16450.14crore are Non-SLR Securities. The excess SLR securities as on 31.03.2021 stood atRs.21498.85 crore.
The net investments (net of provisions) stood at Rs.68111.65 crore as on 31.03.2021 ascompared to Rs.57740.85 crore as on 31.03.2020. Investments under
Held to Maturity (HTM) category consist of 69.35% while Available for Sale (AFS)comprised of 30.65% of total investment portfolio as of 31.03.2021. The net interestincome from investment activity stood at Rs.4158.32 crore in year ended 31.03.2021 ascompared to Rs.4203.89 crore during the last year (down by 1.08%).
The Non-Performing Investments stood at Rs.446.97 crore as on 31.03.2021.
2.5 Merchant Banking
The Bank handled 44 issues (previous year 63 issues) of Commercial Paper amounting toRs.32745 crore (previous year Rs.22220 crore) for its clients as an Issuing and PayingAgent (IPA) during the year.
The borrowing of the Bank as on March 31 2021 stood at Rs.4238.75 crore includingre-finance as under:
|Particular ||Amount as at 31.03.2021 ||Amount as at 31.03.2020 ||Percentage of (+/-) |
|Total Borrowing of which Borrowing RBI under ||4238.75 500.00 ||3670.03 478.00 ||15.50% 4.60% |
|LAF of which Borrowing Market REPO ||0.00 ||0.00 || |
|Of which Borrowing TRePS (G-Sec) ||0.00 ||0.00 || |
|Of which Refinance from || || || |
|NABARD ||0.00 ||0.00 || |
|EXIM BANK ||0.00 ||0.00 || |
|NHB ||0.00 ||0.00 || |
|MUDRA ||0.00 ||0.00 || |
|SIDBI ||51.55 ||85.75 ||-39.88% |
|Borrowings in the form of Bonds & debentures capital instruments ||3605.70 ||3100.00 ||16.31% |
|Borrowings outside India ||81.45 ||6.23 ||1207.38% |
|Others ||0.05 ||0.05 ||0.00% |
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).
Bank has introduced ASBA through net-banking and
Bank is corporate agent for carrying out Bancassurance business under all threesegments i.e. Life Insurance
General Insurance and Health Insurance.
Performance during the year 2020-21
|Insurance ||No. of Policies ||Premium ( ` Cr) ||Commission (Rs.Cr) |
|Life ||8728 ||46.75 ||8.65 |
|General ||135996 ||49.84 ||6.06 |
|Health ||55518 ||46.18 ||6.92 |
|Total ||200242 ||142.77 ||21.63 |
2.9 Government Business
During the Year 2020-21 467399 Challans of direct taxes and 31963 Challans ofIndirect taxes were collected by the branches. Total Commission to the tune of Rs.3.74Crore was received on tax collection business from Central/state government and otherbusiness in current Year.
As a service to senior citizens the bank is processing and crediting monthly pensionpayments of more than 107307 at Central government Defense Railway and Telecompensioners at central Pension Processing Cell (CPPC) Pune. The commission on GovernmentBusiness (Pension) for the Year 2020-21 is Rs.10.81 Crores.
Bank has opened 114517 new Public Provident fund
(PPF) accounts in FY 2020-21.
2.10 Income Expenditure and Profitability
The total income of the Bank stood at Rs.14493.80 crore in FY 2020-21 as compared toRs.13144.68 crore in FY 2019-20. The detailed income/expenditure components are as under:
|Particulars ||2020-21 ||2019-20 ||Variation ( in %) |
|Interest / discount on advances / bills ||7153.93 ||6409.27 ||11.62% |
|Income on investments ||4153.4 ||4202.69 ||-1.17% |
|Interest on interbank lending & other Interest ||561.21 ||883.49 ||-36.48% |
|Total interest income ||11868.54 ||11495.45 ||3.25% |
|Non-interest income ||2625.26 ||1649.23 ||59.18% |
|Total Income ||14493.8 ||13144.68 ||10.26% |
|Interest on deposits ||6525.95 ||6757.19 ||-3.42% |
|Interest on borrowings ||49.65 ||20.56 ||141.49% |
|Other Interest expenditure ||395.47 ||438.90 ||-9.90% |
|Staff expenses ||2255.21 ||1743.82 ||29.33% |
|Other Operating expenses ||1309.84 ||1337.15 ||-2.04% |
|Total Non-interest expenses ||3565.05 ||3080.97 ||15.71% |
|Total Expenses ||10536.12 ||10297.62 ||2.32% |
|Operating Profit ||3957.68 ||2847.06 ||39.01% |
|Provisions and Contingencies ||3407.43 ||2458.48 ||38.60% |
|Net Profit ||550.25 ||388.58 ||41.61% |
2.11 Financial Ratios
The various financial parameters of the Bank during the year
2020-21 can be seen below:
|Particulars ||2020-21 ||2019-20 |
|EPS (`) ||0.88 ||0.67 |
|Cost to Income Ratio (percent) ||47.39 ||51.97 |
|Return on assets (percent) ||0.30 ||0.23 |
|Return on equity (per cent) ||7.17 ||6.32 |
|Book value per share (`) ||12.22 ||11.99 |
|Profit per Branch ( Rs.in lakh) ||28.02 ||21.20 |
|Profit per employee ( Rs.in lakh) ||4.19 ||3.10 |
|Business per Branch (Rs.in crore) ||143.11 ||133.64 |
|Business per employee (Rs.in crore) ||21.45 ||19.55 |
|Interest income as per cent to || || |
|Average working funds ||6.42 ||6.78 |
|Non-Interest income as per cent to average working funds ||1.42 ||0.97 |
|Net Interest Margin (per cent)* ||2.84 ||2.60 |
|Operating Profit as per cent to average working Funds ||2.14 ||1.68 |
|Staff expenses as a percent to average working funds ||1.22 ||1.03 |
|Dividend (per cent) ||0.00 ||0.00 |
|Net worth (Rs.in crore) ||8019.20 ||6985.74 |
|CRAR (%) ||14.49 ||13.52 |
|Of which Tier I CRAR (%) ||10.98 ||10.67 |
During the year Bank has allotted 736049601 equity shares of Rs.10/- each of Bankto Government of India at issue price of `11.29 per equity share on 25th August 2020against the capital infusion of Rs.831 crore. Bank also raised Tier II capital of
Rs.505.70 crore in financial year 2020-21.
2.13 Net worth
The Bank's Net Worth stood at Rs.8019.20 crore as on 31.03.2021 as against Rs.6985.74crore as on 31.03.2020.
2.14 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 14.49% as on 31.03.2021 against the minimumrequirement of 10.87% (including CCB) prescribed by RBI in terms of Basel III norms. TheCommon Equity Tier 1 capital ratio stood at 10.98%.
3. RESOURCES: BANKING OUTLETS HUMAN RESOURCES IT INFRASTRUCTURE CUSTOMERRESPONSIVENESS AND OTHERS: 3 .1 Banking Outlet/ ATM Network
As on 31.03.2021 the Bank had 1964 banking outlets spread across all the States andsix union territories as compared to 1833 as on 31.03.2020. The banking outlets comprisedof 1915 branches and 49 fixed point outlets served by Bank Mitras named as CustomerService Point (CSP).
During the year ended 31.03.2021 the Bank opened 86 new branches and set its footprintin 69 additional districts. Bank also opened 46 fixed point outlets served by Bank Mitrasnamed as Customer Service Points (CSP). In the same period 3 branches were converted intoCSPs and one branch was merged with another branch. During the branch conversion andmerger utmost care was taken to ensure that customers not put into any inconvenience inavailing banking services.
The branch network includes specialized branches in the area of Foreign ExchangeGovernment Business Treasury and International Banking Industrial Finance Micro Smalland Medium Enterprises Hi-tech agriculture etc. Area wise classification of branches ason 31.03.2021 is as under:
|Sr. No. Classification ||As on 31.03.2021 ||As on 31.03.2020 |
|1 Rural ||611 ||616 |
|2 Semi-Urban ||461 ||428 |
|3 Urban ||372 ||331 |
|4 Metro ||471 ||458 |
|Total ||1915 ||1833 |
ATM / CRM Network
The Bank had 1950 automated teller machines (ATMs) and cash recycler machines (CRM) ason 31.03.2021 as compared to 1851 as on 31.03.2020. During the year ended 31.03.2021 theBank installed 499 CRMs.
| ||31.03.2021 ||31.03.2020 |
|Offsite ||445 ||545 |
|Onsite ||1505 ||1381 |
|Total ||1950 ||1926 |
3.2 Human Resources Management
The Bank has put in place comprehensive HRM Policies 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.
Recruitment: During the year 2020-21 the Bank has recruited employees as under:
152 Officers in Scale I 138 Officers in Scale II (which includes 23 Law Officers 31IT Officers 01 Security & 83 Generalist Officers) 29 Generalist Officers in ScaleIII cadre and 220
During the year 926 employees exited from service on account of retirement VRSresignation termination and death.
Inter scale promotions of officers were carried out during 2020-21. Following number ofOfficers were promoted.
|JMGS-I to MMGS-II ||MMGS- II to MMGS III ||MMGS- III to SMGS-IV ||SMGS- IV to SMGS-V ||SMGS-V to SMGS-VI ||SMGS- VI to TEGS-VII |
|55 ||259 ||87 ||20 ||12 ||4 |
During the year 57 Clerks were promoted to Officer cadre in Scale I and 221 Part timeSub-staffs were promoted to Sub-staff cadre. The cadre wise staff position as of31.03.2021 with gender ratio percentage is as under:
|Category ||Male ||% ||Female ||% ||Total |
|Officers ||4784 ||71.93 ||1867 ||28.07 ||6651 |
|Clerks ||2700 ||66.13 ||1383 ||33.87 ||4083 |
|Sub-staff ||1463 ||88.51 ||190 ||11.49 ||1653 |
|Part Time ||680 ||91.77 ||61 ||8.23 ||741 |
|Sub-staffs || || || || || |
|Total ||9627 ||73.33 ||3501 ||26.67 ||13128 |
The Bank has been complying with the reservation policy of
Govt. of India. Special Cells at Head Office and all Zonal Offices are functioning tomonitor the implementation of the reservation policies and to redress grievances ofSC/ST/OBC & physically challenged employees as well as ex-servicemen. The Bank hasdesignated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all itsZonal Offices.
Compassionate Appointments - A Scheme for Compassionate
Appointments'/ Payment of Ex-gratia lump-sum amount" to /of heirs of employeesdying in harness or retiring due to incapacitation framed as per the directives ofGovernment of India has been implemented. Details of compassionate appointments for theyear 2020-21 is as under:
|Cadre ||Compassionate Appointments No. of employees |
|Clerk ||13 |
|Sub-staff ||10 |
|Total ||23 |
The reimbursement of examination fees & payment of cash incentive / Honorarium inrespect of courses from Indian Institute of Banking & Finance MBA from reputedInstitutions FRM
BIRD PRM CFA etc. has been widened by adding courses in the list of courses forreimbursement of fees thereby making total 38 courses eligible for reimbursement ofexamination fees. A policy for granting special leave and 100% reimbursement ofhospitalization expenses to officers when he/ she meets with an accident/ injury while onduty is in place.
Learning & Development:
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 business development customerrelationship management marketing of products and services credit monitoring andrecovery risk management technology based banking branch management complying withstatutory legal and policy requirements and preventive vigilance received specialattention during the year. To meet the requirements of the lockdown imposed due toCovid-19 pandemic Learning and Development (L&D) strategy has been customized forenriching employees through virtual/ online training programs enabling them to availthese services from anywhere.
Training programs were also held on thrust areas like financing MSMEs retail lendingagriculture finance NRI customer service soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 01.04.2020 to 31.03.2021 areas under-
|Cadre ||No. of Programmes Training Days ||Employees Trained ||Cadre |
|Officers ||139 ||474 ||4339 |
|Clerks ||118 ||268 ||2359 |
|Clerks ||118 ||268 ||2359 |
|Total ||285 ||794 ||7135 |
Initiatives/ Precautions taken by Bank to Protect Employees from Covid-19
In the backdrop of Covid-19 outbreak several precautionary measures in the interest ofour employees and business continuity have been taken.
i. Awareness has been created among employees/ customers by issuing various guidelinesabout preventive interventions for reducing transmission of the Corona virus.
ii. In order to maintain social distancing at work place and reduce chances ofcontacting Corona virus about 50% of Employees were allowed to attend office while theremaining employees were allowed to work from home (WFH).
iii. Differently abled person employees were exempted from attending office and wereallowed to work from home. Similarly pregnant ladies were allowed to work in the backendso that they are least exposed. iv. Distress relief of Rs.20.00 Lakh to employees onaccount of loss of life due to COVID-19 while discharging duties was provided.
v. Appealed to all employees to take COVID vaccine along with their dependents andreimbursement of Vaccination expenses
vi. Reimbursement of hospitalization expenses for existing employees for the treatmentof COVID-19.
3.3 Technology Initiatives
The Bank had taken up & successfully initiated/ upscaled various IT projects during2020-21 which are enumerated as under:
MeitY - Digital Score Card: As against the Ministry of Electronics & InformationTechnology (MeitY) target of 42.12 crore digital transactions the Bank achieved 41.99crore digital transactions during the year ended 31.03.2021. With respect to merchantonboarding Bank on boarded 76566 merchants against the target of 103201 in FY 2020-21.The MeitY monitors progress of digital payment transaction merchant acquisitions UPI andAEPS system resilience on monthly basis and communicates the scores to Banks. Our bank hasmaintained "Good" category performance in year ended 31.03.2021.
The Bank has implemented 1050 Self Update Pass Book Printing Kiosks and 4 off-site and495 Onsite Cash
Recyclers at various locations across the Bank.
The Bank has a tie up with BSNL for upgrading the Bandwidth of the existing LeasedLines to 2 Mbps. As on
31.03.2021 bandwidth of 1759 leased lines is upgraded to 2 Mbps. In order to make oursystems more resilient bandwidth is made available from Additional Network ServiceProviders. So far 1743 branches have dual service providers.
National Common Mobility Card (NCMC) The Bank partnered with NPCI for issuanceof National Common Mobility Card (NCMC) using Near Field Communication.
NCMC has features of both Online-Offline transactions and prepaid wallet capabilities.Bank has so far issued 622570 NCMC cards to customers.
Bharat Bill Pay System (BBPS): BBPS is a one-stop ecosystem for payment of allbills providing an interoperable and accessible "Anytime Anywhere" bill paymentservice to all customers access India with certainty reliability and safety oftransactions. Bank is offering corporate bill payment solution to Pune MunicipalCorporation (PMC) MSEDCL bill payments on BBPS platform. BBPS service is also live on BC(Business Correspondent) Channel.
The ISO 27001: 2013 certification was achieved for our IT division covering HO-IT DCDR and CBS Project Office in August 2015. Bank is ensuring continued compliance
& successfully completed the Surveillance Audit for the continuation of ISO 27001:2013 Certification for the year 2020-21 as well.
The first PCI DSS certificate was awarded towards compliance of Debit Card environmentsecurity to the Bank on 12.09.2014 and is continued till date.
In order to provide better improved access and service quality to customers DFS hasintroduced EASE (Enhanced Access and service Excellence) agenda and reforms. Bank haveimplemented additional 5 services
& 39 features in Internet Banking and 5 services and 42 features in Mobile banking.The share of financial transactions through Home and Mobile' based channelsincreased from 72% to 79%. Also bank has incorporated
Insurance and Loan module in digital channels.
The Bank is actively promoting BHIM Aadhaar Pay payment channel and 38152 Merchants areon-boarded as on 31.03.2021.
Bank has implemented Public Financial Management
System (PFMS) which is used by Government Agencies to make payments directly into therecipients Bank Account.
The Bank issues Rupay and Visa debit cards in different variants such as Visa EMVRupay Classic
Rupay Platinum etc. to its CASA Accounts. As per RBI guidelines all the cards are EMVChip based. The total card base of the bank increased from 76.44 lakh as on 31.03.2020 to96.31 lakh as on 31.03.2021.
Various facilities are being provided through our Internet
Banking platform for facilitating online payment of taxes utility bill paymentsonline shopping / e-commerce railway reservation LIC premium payment e-SBTR etc. andfacility for viewing tax credit statement 26AS and
Demat account with the Bank.
White Label Payment Gateway (WLPG): Bank has introduced White label payment gatewaysolution for our merchants. This solution allows Bank to provide payment processingservices using its own name.
Online Account Opening: With this solution customers are able to open limited KYCsavings bank accounts anytime anywhere at their convenience.
Tab Banking Solution: With this solution customers are able to open salary savings bankaccount anytime anywhere in assisted mode at their convenience.
Bank has implemented Cyber Security operations Centre
(CSOC) with state of the art technologies including
a) Security Information and Event Management (SIEM) solution
b) Anti-Advanced Persistent Threat (Anti-APT) Solution for combatting advanced attacks.
c) File Integrity Monitoring (FIM) for detecting unauthorized changes to critical fileson Servers.
d) Privilege Identity Management Tool (PIM) a centralized portal-based console toaccess the privilege devices servers and applications for all privilege users with twofactor authentication for login.
e) Network Behavioral Anomaly Detection (NBAD) tool for detecting network anomalies.
QUICK pay: A mobile app has been developed for merchant to do self-registration for QRcode to acquire transactions through Scan & Pay. This app also provides details of thetransactions performed by customers using
Scan & Pay.
Digital Document Execution (DDE): Bank has integrated with National E-GovernanceServices Ltd (NeSL) for implementation of Digital Document Execution (DDE) Platform is aWeb API based platform/service for e-signing and e-stamping of Loan documents.
3.4 Customer Centric Initiatives taken by the Bank
i. The Bank has pursued high standards of customer service to ensure customersatisfaction throughout the year by implementing all major recommendations of GoiporiaCommittee Dr. S.S. Tarapore Committee and Damodaran Committee. As a member of BankingCodes and Standards Board of India (BCSBI) the Bank has adopted Code of Bank's Commitmentto Customer and Bank's Code of Commitment to MSMEs.
ii. Bank has printed folder called as "My Folder" containing all customerservice policies information on service charges guidelines on Government SchematicLoansOmbudsman and BCSBI Codes. The same is printed in Marathi Hindi and English andsupplied to all branches and Zones for making the same available to all customers ondemand.
iii. Duly documented policies approved by the Board on "Deposit""Collection of Cheques" "Redressal of Grievances""Compensation" "Operational Procedure for Settlement of Claims of DeceasedDepositors" and Customer Rights Policy are in place.
iv. Customer Service Committees are formed at all branches and their meetings areconducted regularly on monthly basis. The Standing Committee on Customer
Service at Head Office and Zonal Level Customer
Service Committees at Zones meet regularly to address and review various customerrelated matters and to take steps for an improvement on an ongoing basis. v. TheCommittee of the Board on Customer Service meets on quarterly basis to monitor the qualityof the customer service redressal of customer grievances and to ensure customersatisfaction. vi. Bank has well established grievances redressal machinery is in place torespond promptly to customer grievances. The Bank has internet based mechanismStandardized Public Grievances Redressal System (SPGRS) for lodging of complaints or togive suggestions/ feedback on services by the customers and for providing acknowledgementand status of their feedback/ complaints as per the directions of Government of India.
|Sr. || || || |
| ||Particulars ||2020-21 ||2019-20 |
|No. || || || |
|1 ||Customer complaints at the ||296 ||145 |
| ||beginning of the year || || |
|2 ||Complaints received during the || || |
| ||year ||3760 ||8740 |
|3 ||Complaints redressed during || || |
| ||the year ||4037 ||8589 |
|4 ||Complaints pending at the end || || |
| ||of the year ||19 ||296 |
3.5 KYC/ AML
The Bank has Board approved KYC-AML-CFT Policy in place.
The Policy is the foundation on which the Bank's implementation of KYC norms AMLstandards and CFT measures are based. The full KYC compliance entails staff education aswell as customer education for which the Bank takes various measure on a regular basis. Acomprehensive list of eligible KYC documents is uploaded on the Bank's web site for thebenefitof customers. Regular training sessions are conducted on KYC-
AML-CFT guidelines at the Bank's training establishments to sensitize the employees.
3.6 Risk Management
The Bank has put in place Risk Management Policies and Strategies which 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 Marketing & Publicity
Bank adopted an integrated marketing strategy to promote Retail Agri MSME productsand IT services. Marketing Team participated in various expos in physical and virtual modeunder Retail Agri & MSME sector for increasing our presence and businessmobilization. In FY 2020-21 Bank established its presence across all mediums like TVRadio Digital Print OOH (out of home) etc. Bank associated with various National
& Regional TV Radio Digital Channels for creating awareness about Bank andpromotion of various products & services.
Bank partnered with leading property car and e-commerce portals for promotion ofRetail MSME products along with lead generation. In order to increase visibility of theBank in the areas where Bank is expanding its banking outlets marketing team associatedwith leading regional media in print radio TV and digital for required publicity.
With a view to establish a digital footprint across the web and in order to leveragethe power of local search for helping customers Bank implemented Location Managementsolution by updating the information of Bank Branches and ATMs (maps reviews contactdetails products and services) on various search engines and social network sites.
To facilitate ease and convenience for the customers Bank revamped its corporatewebsite.
3.8 Citizen's Charter
The Bank has adopted the Citizen's Charter since 2000-01 which details the duties andresponsibilities of the Bank towards its customers. The charger is displayed at all thebranches and Bank's website.
4. SOCIO/MICRO ECONOMIC DEVELOPMENT
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 under Priority Sector Lending
(including investments) as of March 31 2021 stood at 58.05% of adjusted net bankcredit (ANBC) as against the mandatory target of 40%. The outstanding advances underPriority Sector (excluding investment) as of March 31 2021 aggregated to Rs.
49109 crore constituting 45.62% of total credit.
Bank sanctioned loans of Rs.5824 Crore for Agriculture and allied activities duringthe year 2020-21. Total outstanding advances to agriculture sector reached a level ofRs.16202 Crore as on 31.03.2021. Total Agriculture (including investments) stood 19.91%of ANBC. Bank has achieved all mandatory targets (on Quarterly average basis) underAgriculture including sub-targets of Small and Marginal Farmers Direct lending tonon-Corporate farmers etc. during the FY 2020-21.
The bank focused on growth of Investment Credit under Agriculture during the year2020-21 and disbursed Rs.1799 Crore. The bank also devised Area Based schemes to meet theneeds of Agriculture and Agro based industries.
During the year 2020-21 Bank has introduced Covid relief schemes viz. Mahabank KisanRahat Yojana (MKRY) for
Farmers MKRY for Agro Based industries/ units & Mahabank
SHG Rahat Yojana to support the Borrowers to cope with the tough situation arisen dueto outbreak of COVID-19 pandemic. Bank has disbursed total loan of Rs.325 crore under theaforesaid schemes.
Over last few years Agriculture sector has been repeatedly hit by vagaries of naturalcalamities like drought flood hailstorms etc. Within the regulatory guidelines Bankhas been extending relief measures to farmers from time to time. Our bank alsosuccessfully implemented farm loan waiver scheme of Govt. of Maharashtra. During the yearBank credited Rs.1770 crore under MJPSKY-2019 (debt waiver scheme of Maharashtra State).
Along with this Bank has efficiently implemented various other Farm Loan Waiverschemes declared by respective states.
The Bank undertook awareness/sensitization program and locational trainings for thebranches for increasing advances to agriculture by providing hassle free credit tofarmers.
4.2.1 Mahabank Kisan Credit Card
This scheme gained popularity especially in rural areas where it is being propagatedsuccessfully and vigorously. The bank organized Credit Camps during Kharif 2020 seasonacross the country. During FY 2020-21 the bank sanctioned total 3.89 lakh Kisan CreditCards (KCC) to farmers amounting to Rs.5557 crore. Credit flow to MKCC beneficiariesreached to a level of
Rs.7502 Crore as on 31.03.2021. As per regulatory guidelines Bank has alsoimplemented a special Drive for issuing KCCs to farmers for Agriculture as well as forAnimal Husbandry and Fisheries. The scheme is helping small and scattered dairy farmersfishermen and entrepreneurs in animal husbandry to grow their business.
4.3 Micro Small and Medium Enterprises (MSME)
MSMEs are the growth engine for the Indian economy. They have highest contribution ingenerating employment both directly as well as indirectly.
During FY 2020-21 MSMEs were most affected due to
COVID-19 related distress lockdown labor migration etc. Bank has extended support toMSMEs and has implemented various relief measures given to MSME borrowers by Government ofIndia and the Reserve Bank of India.
i. Moratorium on repayment of instalments granted to the borrowers whose repayment werefalling due between 01.03.2020 and 31.08.2020.
ii. For working capital limits extended in terms of CC/OD interest during the abovemoratorium period was carved out as FITL. iii. Additional funding extended under EmergencyCredit
Line Guarantee Scheme (ECLGS) to eligible borrowers. iv. Additional finance extendedunder Adhoc line of credit
v. Liberalised working capital assessment (LWCA) scheme implemented due to theelongated working capital cycle of borrowers. vi. For street vendors Bank of Maharashtrahas extended loans via PMSVANidhi scheme to revive their business.
Bank's lending to Micro Small and Medium Enterprises increased by 35% as compared toMar 2020 and recorded growth of Rs.5969 crore in absolute terms. Total MSME advances ofthe bank stood at Rs.23132.87 crore as on 31.03.2021. Bank's performance in MSMEportfolio in FY'21:
|S. No Particulars ||Actual ||Target |
|1 % of Micro to Adj. Net Bank Credit ||15.94% ||7.50% |
|2 YOY growth under Micro Enterprises ||66.76% ||10% |
|3 YOY Growth under Micro & Small enterprises O/s ||34.55% ||20% |
|4 Share of Micro against to MSE O/s ||89.90% ||60% |
Bank is supporting credit needs of small business and non-farm enterprises engaged inmanufacturing trade and services up to Rs.10 lakh by way of Pradhan Matri Mudra Yojana(PMMY). During the year ended 31.03.2021 the Bank sanctioned
Rs.2560.38 crore under PMMY against the target of Rs.2375 crore thereby achieving107.80% of target.
Other Major Achievements
Bank has conducted credit outreach programme from 17.10.2020 to 31.12.2020 duringwhich loans to 7230 MSME borrowers amounting to Rs.2076 cr were sanctioned and totaldisbursement was Rs.1810 Cr. During this period Bank has organized 40 webinars and 185MSME credit outreach programmes.
In order to accelerate the growth of MSME advances
Bank has conducted MAHA MSME MARATHON CAMPAIGN (M3 Campaign (from 04.01.2021 to25.02.2021. Overall Rs.2094.54 Cr loans were sanctioned during the campaign. Against thedisbursement target of
Rs.1500 Cr bank has achieved disbursement of Rs.1796.53 Cr (approx 120%). As part ofthis M3 campaign Bank organised MSME expos webinars on PAN India basis to contact MSMEenterprises and industry associations.
Bank has implemented the MSME restructuring guidelines issued by RBI and hasrestructured 11470 accounts amounting to Rs.861.98 crore during FY' 2020-
Finance is being extended with very competitive RoI under Banks various customizedschemes like Maha GST Maha Conductor Maha Hospitality schemes.
Increased the financial limit under MSME GST scheme from Rs.3 Cr to Rs.10 Cr. Thishelped in increasing the lending under MAHA GST scheme by 80.25% to Rs. 1276.89 Cr.
Achieved good growth in MSME portfolio through various delivery channels - partneringwith Fintech companies
Co-lending channel financingetc. and other strategies.
Bank has launched Digital lending products under co-lending arrangement with "LoanTap" (NBFC) which enable end to end digitisation of MSME loans.
Bank has a tie-up with finch company M/s Atyati
Technologies for providing end to end services to MSMEs. This tie-up would enable microand small enterprises to access Bank facilities with ease.
Bank has launched Mahabank Channel financing scheme which meets the credit demands ofcorporates and their MSME channel partners. Bank has sanctioned
Rs.1345 crore of parents limits to various corporates under the scheme.
Decentralisation of E-TReDS platform: Panjim brach
Goa Zone has been added as a new nodal centre for E-TReDS platform which has resultedinto mobilisation of Rs.474 crore finance under TReDS.
Bank has designated 50 branches as special MSME branches to cater the needs of MSMEentrepreneurs.
As an organisational transformation initiative Bank has implements an Enterprise wideLoan Lifecycle Management System (LLMS) for automation of Loan Life
Cycle Management Process and towards digitisation of records/document.
4.4 Bank's Exposure to Select Segments
|Sr. No. Sector ||As on 31.03.2021 ||As on 31.03.2020 ||% incease (+/-) |
|1 Micro / SHG Finance ||365 ||217 ||68.00% |
|2 Weaker Section ||11863 ||10481 ||13.19% |
|3 SC/ ST Beneficiaries ||2911 ||2530 ||15.07% |
|4 OBC Beneficiaries ||7605 ||6661 ||14.17% |
|5 Minority ||3814 ||3017 ||26.40% |
|Communities || || || |
5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK: 5.1 Credit Flow to Retail Sector
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. Total Retail portfolio of the Bank as on 31.03.2021 stood atRs.28650.93 Crore.
|SN ||Scheme ||Brief Description ||Portfolio as of Mar '21 ||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. ||17909.07 ||2.75 |
| || ||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" || || |
|2 ||Maha Super Car Loan Scheme and M a h a b a n k vehicle Loan scheme ||Bank has launched schemes for purchase of New four wheelers 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). ||1799.94 ||2.43 |
|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 for pursuing higher studies /education in India and abroad. ||1287.66 ||4.32 |
|4 ||Loan Against Self-Occupied Property ||Bank has introduced Loan Against Self-Occupied Property in which loan is given to the borrower against the property. The end use of the loan is for meeting varied personal needs like Children's Education marriage of children medical treatment travel/ tour expenses buying vehicle or hi- tech gadgets other domestic needs etc. ||911.15 ||1.81 |
|5 ||Mahabank Top up Loan Scheme ||In order to extend additional credit support to existing housing loan borrower as well takeover of existing housing loans of other banks with additional facility of Top-up Loan. Bank has launched "Mahabank Top Up loan Scheme". ||425.15 ||1.04 |
| || ||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 and other domestic needs etc. || || |
|6 ||Mahabank Gold Loan Scheme ||To cater to the needs of meeting personal expenses whatsoever which include personal expenditure for varied needs like marriage higher education medical emergencies and business travel etc. Bank has a retail loan product as "Mahabank Gold Loan Scheme". ||1939.38 ||0.30 |
|7 ||Mahabank Aadhar Loan Scheme ||To cater to the needs of our existing pension account holders in meeting their personal expenses pilgrimage medical and domestic needs etc. Bank offers "Mahabank Aadhar Loan Scheme". ||596.76 ||0.98 |
5.2. Centralized Processing of loans
Bank has established Centralised Processing Cells (CPCs) for processing and sanctioningof commercial and retail advances at all its zones to improve the turnaround time (TAT) infacilitating timely credit.
In the financial year 2020-21 all three Pune based CPC
Retail i.e. Pune City Pune East and Pune West CPCs were merged into one Maha BankRetail Point for processing all the mortgaged based loans in Pune at a single place formapped branches and above the delegated sanctioning powers of unmapped branches.Similarly Mumbai City & Mumbai Suburb are also merged into one Maha Bank RetailPoint.
5.3 Door Step Banking Services
Bank is providing Door Step Banking Services for its retail customers in 100identifiedcities through its 555 branches. The services include financial transactionslike cash withdrawal. Non-financial transactions like delivery of account statement andTDS certificate/ Form 16 as well as pickup services of cheque 15 G/H form standinginstructions life certificate etc are also made available. Looking at the Covid-19pandemic the basic financial and non-financial services at doorstep has been widelyappreciated by customers.
5.4 Alternate Delivery Channels 5.4.1 Internet Banking
1. There was an increase of 6.82% in Internet Banking users over the previous year. Asof 31.03.2021 total 15.31 lakh total customers were enrolled for internet banking facility.
2. With continuous follow up and increase in net security through the Mahasecure for IBusers substantial rise in users/online transactions is expected.
3. In the internet Banking additional 5 services and 39 functionalities were addedduring the year for more customer ease and convenience.
5.4.2 Mobile Banking
1. Mobile Banking users increased by 63.91% during the year. Total enrolled uses were13.64 lakhs as on
2. Maha Mobile functionality has been customized and simplified with addition of 5services and 42 functionalities for increasing enrolments.
6. CORPORATE SOCIAL RESPONSIBILITY
Following the legacy of the age-old tradition of contributing to socio-economicdevelopment & upliftment of underprivileged weaker sections and rural citizens Bankundertook varied activities aligned to Govt. guidelines viz.: Helping MSMEs: Bankorganized Online event on "Finance for MSMEs" organized by Mahratta Chamber ofCommerce Industries & Agriculture (MCCIA) for helping out the MSMEs
Promoting eco-friendly initiatives: Installation of Water Harvesting System ineducational institutions Promotion of Education: Bank provided books and projectorfor study center at Pulgaon sponsored International & National
Web conference in various schools and colleges and provided study materials to thevisually challenged students.
Helping Hand in Combating Covid-19: Bank's employees donated Rs.5.00 Crore to PMCARES Fund and Rs.1.66 Crore to CM CARES Funds of several states. At different placesacross the country the Bank distributed sanitization kits food packets and drinking waterto the Corona warriors like medical staff police personnel and sanitization workers.
Rural Development & Women Empowerment:
Bank is undertaking various social activities through Rural Development Centre (RDCs)and two trusts of Bank i.e. Mahabank Agricultural Research and Rural DevelopmentFoundation (MARDEF) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) in the areas ofAgriculture Rural
a) Activities through Mahabank Rural Self Employment
Training Institutes (MRSETIs)-
During the year 2020-21 Bank imparted EDP & skill based training to 3698trainees as against set target of 3375.
A total of 3016 new businesses were started by these trained entrepreneurs showingsettlement ratio of 81.16%; 1901 units are credit linked showing 62.14% achievement undercredit linkage. b) Activities through RDCs:-
Besides advocating farmers for their credit needs Bank organized 143 FarmerTraining Camps wherein 4394 farmers were given specialized training on various modernAgricultural technologies. Soil and water testing was carried out for the benefitof the farmers through RDC Bhigwan. During the year 2020-21 2625 soil and water samplesare tested and reports were provided to farmers along with necessary recommendations.
774 Financial Literacy Camps were organized wherein 46597 participants wereeducated for banking digital transactions use of UPI BHIM App and social securityschemes like PMJJBY PMSBY APY etc.
c) Other Activities: - MahaBank SHG Rahat Yojana- COVID-19 was introducedimmediately after foreseeing the effects of COVID-19 pandemic situation to extend reliefto regular repaying SHGs by extending additional loan up to Rs.1.00 Lakh.
Women SHG members were imparted training on various skill developmentsactivities like
Garment making files and envelop making preparation of milk products preparation ofvarious items like spices pickles jam & jellies hand wash incense stickManufacturing and handmade jewelry making etc. through GMBVM Trust and MRSETIs.
Bank is also providing an outlet for sale of
SHG products named "Savitree" and also hand holding to SHGs for theirparticipation in State
Level / District level exhibitions / melavas. They have participated in BhimthadiJatra Exhibitions arranged at Ganesh Kala-Krida Mandir
Lokmangal premises on eve of Diwali & Ganesh
Utsav Bird sanctuary function at Bhigwan etc. Health check-up camps were alsoarranged for women SHG members through GMBVM.
d) Other initiatives: -
Bank has celebrated the September 2020 as a
"Poshan Month" through Gramin Mahila Va Bal Vikas Mandal Trust (GMVBM) &RSETIs in which Bank created awareness about nutrition and distributed high nutrition foodpackets in select villages.
Bank received National Award for best performance in SHG financing under DAY NRLMscheme of Govt of India.
Formed and credit linked 21803 SHGs amounting to Rs.283.74 Cr. as against thetarget of 15470 SHGs amounting to Rs.255.10 crore (111%). Bank is alsoimplementing the social security schemes of Govt. like PMJJBY PMSBY APY etc. throughBranches BCs and other digital modes. GMBVM trust provided skill based training torural women for self-employment activities like Agarbatti Candles etc. to empower themfor starting new business. These women are running their business on individual as well asthrough SHGs.
7. LEAD BANK
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. Everyyear District Credit Plans for the districts are prepared and implemented with thecooperation of other member banks as well as in coordination with District Collectors ofrespective districts.
7.2 State Level Bankers' Committee
The Bank is the Convenor of State Level Bankers' Committee (SLBC) for the State ofMaharashtra. SLBC prepares State Annual Credit Plan in consultation with Lead DistrictManagers
Member Banks NABARD Reserve Bank of India etc. The Priority Sector plan for the year2020-21 was for Rs.474511 crore which was one of the highest in the country. The samewas approved in a special meeting held under the Chairmanship of Hon'ble Chief Minister ofMaharashtra.
SLBC also ensures holding of quarterly meetings regularly to review the implementationof State Annual Credit Plans Priority Sector lending and Govt. sponsored schemes in theState.
Apart from regular SLBC meetings various other meetings are also organized by SLBC tocoordinate between Member
Banks State Government Government Agencies Reserve
Bank of India NABARD and the Central Government. SLBC Maharashtra coordinates anetwork of more than 16827 bank branches in the state.
As the SLBC convener Bank of Maharashtra coordinated for implementation of PradhanMantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. As of 31.03.2021 total of 300lakh PMJDY accounts have been opened in the State. The process of opening of PMJDYaccounts is continued. SLBC also coordinates implementation of other Social SecuritySchemes of the Central Government in the State.
7.3 FINANCIAL INCLUSION / PMJDY:
| ||Particulars ||2019-20 ||2020-21 |
|FI Plan ||No of Transactions by BCA (in lakhs) ||168.33 ||186.01 |
| ||Amt of transactions (in Cr) ||10003.76 ||12896.05 |
|PMJDY ||No. of PMJDY accounts (in lakhs) ||61.74 ||68.15 |
| ||Of Which Aadhaar Seeded (in lakhs) ||56.03 ||62.80 |
| ||% OF Aadhaar Seeding (in lakhs) ||90.75% ||92.10% |
| ||Of Which Mobile Seeding (in lakhs) ||49.81 ||56.47 |
| ||% of Mobile Seeding (in lakhs) ||80.68% ||82.86% |
| ||Of Which Ru-Pay Card issued (in ||19.17 ||26.71 |
| ||lakhs) || || |
| ||% of Ru-Pay Card issued (in lakhs) ||31.04% ||39.20% |
| ||Balance in PMJDY A/c (in Cr) ||2057.37 ||2545.14 |
| ||Average Bal. per account (actual) ||3332 ||3735 |
| ||PMJDY OD Count (in lakhs) ||2.53 ||2.66 |
| ||PMJDY OD Amount (in lakhs) ||2774.01 ||3202.08 |
| ||Zero Bal. PMJDY A/cs (in lakhs) ||14.82 ||11.47 |
|Social ||Enrolment under PMJJBY (in lakh) ||12.87 ||16.41 |
|Security ||Enrolment under PMSBY (in lakh) ||22.72 ||31.12 |
|Schemes ||Enrolment under APY (in lakh) ||2.03 ||2.83 |
|BSBD ||Total BSBD Accounts (in lakhs) ||85.20 ||93.53 |
|Accounts ||O/S Balance in BSBD A/c (in Cr) ||2635.39 ||3223.00 |
| ||Average bal. per account (actual) ||3093 ||3445 |
| ||Commission Paid towards BC ||27.88 ||34.23 |
| ||Services (in Crore) || || |
The Bank has a full-fledged call center with toll free number 18001022636 for redressalof PMJDY grievances. In appreciation of its efforts towards financial inclusion the Bankwas also recognized by the Govt of India in FY 2020-21 for excellent performance in thefield of financial included: Secured 1st position for issuance of RuPay cards
. showing3932%growthinfinancial year 2020-21 Certificate of Appreciation underthe APY Financial
Freedom Fighters Campaign held from 14.08.2020 to 30.09.2021.
Qualified under APY Leadership Capital 3.0 Campaign held from 18.01.2021 to28.02.2021 & APY Big Believers
3.00 Campaign held from 01.03.2021 to 31.03.2021.
Qualified under winning Wednesday campaign for the month of March 2021.
Certificate of Appreciation under APY Power to Persist
Campaign for the month of September 2020.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS: 8.1 Performance ofRegional 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 March 31
2021 stood at 412 in its area of operation covering 17 out of 36 districts ofMaharashtra state. These branches are controlled through 7 Regional Offices.
All 412 branches and controlling offices are under core banking solution (CBS).
Performance highlights of Maharashtra Gramin Bank for the FY 2020-21 (Pre Audit) are asunder:
Total Business level was Rs.20682.70 Crore.
Total deposit was Rs.13540.64 Crore and CASA share was 57 %.
Bank has achieved operating profit ofRs.261.70 Crore.
Bank has achieved most of the targets under MoU DAP given by sponsor Bank for thefinancial year 2020-21 in major key performance areas.
|Sr. No. Performance Parameter ||Target FY 2020-21 ||Actual as on 31.03.2021 |
|1. Total Deposits ||12700.00 ||13540.64 |
|2. CASA deposits ||7000.00 ||7736.11 |
|3. Total Business ||20360.00 ||20682.70 |
|4. Interest Income ||910.00 ||979.49 |
|5. Non-Interest Income ||115.00 ||167.82 |
|6. Profit Operating ||226.00 ||261.70 |
|7. Recovery in Write Off ||5.00 ||11.52 |
MGB has deployed 1320 Business correspondents in rural areas to provide door stepservice to the customers. Bank has opened 23.44 Lakh PMJDY accounts and 11.48 Lakh debitcards are issued to in these accounts. Bank is actively participating in PMJJBY PMSBY andAPY as well as the PMMY scheme declared by the Government of India.
8.2 Performance of METCO
The Maharashtra Executor & Trustee Company Pvt. Ltd
(METCO) the 100% subsidiary of Bank of Maharashtra was established in 1946 with anaim to provide services auxiliary to banking 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
The company is located at Pune having its branch units at Pune Mumbai Thane andNagpur. It is managing about 1111
Public & Private Trusts. During the year additional 23 wills were added makingtotal 1306 will in its custody for execution.
At Present the company manages properties both movable and immovable of 21 Clientsunder the Power of Attorney. The Company also acts as the Trustee in respect of 99policies under Married Women's Property Act and as court appointed Guardian of Minor'sproperty in 2 cases. The company also acts as Managing Trustee of nearly 20 trusts andcatalysts its social responsibility by extending help to poor people.
Company has followed all the instructions regarding safety during COVID-19 issued byGovernment of India/ Ministry of
Corporate Affairs. The Company has also donated through its trusts Rs.305 lacs to 857beneficiaries.
The net profit of METCO for FY 2020-21 stood at Rs.70.85 lakhs.
9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
During the year 2020-21 the Bank has achieved various remarkable achievements in thefield of Official Language implementation: i. Bank was awarded Skoch Order-of-Merit 2021award for Better Implementation of Rajbhasha and became the first bank to receive thisaward for implementation of official language. ii. Our Kolkata Zonal Office receivedsecond prize for Eastern
Region in Regional Rajbhasha Puraskar from Department of Official Language Ministry ofHome Affairs. iii. Various Town Official Language Implementation Committees (TOLIC)convened by other Banks awarded our Kolkata Goa Jaipur Patna Zonal Offices and VaranasiBranch (Lucknow Zone) Jodhpur Branch (Jaipur Zone) for excellent implementation ofOfficial Language. iv. Monthly Rajbhasha e-Magazine Rajbhasha E-Pragati' is beingregularly published every month. As a new initiative Rajbhasha E-Pragati in Brail scriptis also published for the benefit of visually challenged employees of the
Bank. v. Bank is the convener Bank for Town Official Language Implementation Committee(TOLIC) in Mumbai Pune Solapur Latur & Jalgaon. Meetings of these committees wereheld regularly during the year and various activities of the committees were organizedthroughout the year as per schedule. vi. "Hindi Karya Diwas" (Hindi Working Day)is being observed by all the branches & offices of the Bank on the third Saturday ofevery month. All the staff are doing their maximum work in Hindi on this day. vii. Hindiversion of Bank's mobile banking platform Maha-Mobile has been made available. Informationon Bank's website are also provided in Hindi. viii. The facility of "Online RajbhashaKosh" & "Online Hindi Roster" is made available on Bank's intranet forthe use of employees. ix. "Maha Kosh Mobile App" and "Mahabank PragatiMobile App" were launched by Shri A. S. Rajeev MD & CEO during the RajbhashaConference on 9th March 2021 at Hyderabad. This will facilitate the employees to accessboth these "Apps" through their mobiles.
The Bank has put in place a comprehensive Security Policy covering the entire Securityarrangements in the Bank. The policy covers the following:
Protect the Bank's assets such as cash gold documents and valuables at branchesadministrative offices currency chests data centre other critical centres and securitymeasures for cash and valuables.
Create a secure safe and conducive environment for Staff visitors and customers toconduct smooth and normal banking business.
Measures to counter manmade disasters and natural calamities.
During the FY 2020-21 proactive steps were taken on the physical security requirementsin the Bank after analysis of the threat perception current crime scenario crimepattern modus operandi of bank robberies breaches of security and fire incidents besidesequipping and training the security personnel and other bank staff to counter anyeventuality.
11. SECRETARIAL AUDIT:
Pursuant to Regulation 24A of SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019dated February 08 2019
Bank had appointed M/s. Joshi & Joshi Practicing Company
Secretaries Pune as a Secretarial Auditor to undertake secretarial audit of Bank forthe financial year 2020-21. The
Secretarial Audit Report is annexed to this Report. There is no secretarial auditqualification for the year under review.
12 DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts for the FinancialYear ended March 31 2021: a) The applicable accounting standards had been followed alongwith proper explanation relating to material departures if any; b) The accountingpolicies framed in accordance with the guidelines of RBI were followed and the directorshad selected such accounting policies and applied them consistently and made judgments andestimates that are reasonable and prudent so as to give a true and fair view of the stateof affairs of the Bank at the end of the financial year and of the profit that period; c)The directors had taken proper and the maintenance of adequate accounting records inaccordance with the provisions of applicable laws to the
Bank for safeguarding the assets of the Bank and for preventing and detecting fraud andother irregularities; d) The directors had prepared the annual accounts on a going concernbasis; e) The directors had ensured that internal financial controls followed by the Bankare in accordance with guidelines issued by RBI in this regard and that such internalfinancial controls are adequate and were operating effectively; and f) The directors haddevised proper systems to ensure compliance with the provisions of all applicable laws andthat such systems were adequate and operating effectively.
13 CHANGES IN THE BOARD OF DIRECTORS:
During the year 2020-21 the following changes took place in the Board of Directors:Shri A.B. Vijayakumar was appointed as an Executive Director of the Bank by the Governmentof India w.e.f 10.03.2021 in place of Shri Nageswara Rao Y. who completed his term as anExecutive Director of the Bank on 21.01.2021.
14 DIVIDEND DISTRIBUTION POLICY:
In terms of Clause 43A of SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015 Bank has formed a Dividend DistributionPolicy and the same is available on the Bank's website i.e. www.bankofmaharashtra.in.
15 BUSINESS RESPONSIBILITY REPORT:
As per the SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015 Business Responsibility Report (BRR) 2020-21 of theBank is available on the Bank's website i.e. www.bankofmaharashtra.in.
The Board of Directors place on record their appreciation for the contribution made bythe outgoing Director Shri Nageswara Rao Y.
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 Stock Exchanges andDepositories for their valuable advice guidance and support; to the Customers andStakeholders for their patronage; to the correspondents and associates for theirco-operation and to all the members of staff of "Mahabank Family" for theirunstinted commitment and contribution to the overall development of the Bank.
| ||For and on behalf of the Board of Directors |
|Place: Pune ||(A.S. RAJEEV) |
|Date 29th April 2021 ||Managing Director and CEO |
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31 2021
The Members Bank of Maharashtra
We have conducted the Secretarial Audit of the compliance of applicable statutoryprovisions and the adherence to good corporate practices by Bank of Maharashtra(hereinafter called the "Bank"). Secretarial Audit was conducted in a mannerthat provided us a reasonable basis for evaluating the corporate conducts/statutorycompliances and expressing our opinion thereon.
Based on our verification of the Bank's books papers minute books forms and returnsfiled and other records maintained by the Bank and also the information provided by theBank its officers agents and authorized representatives during the conduct ofsecretarial audit we hereby report that in our opinion the Bank has during the auditperiod covering the financial year ended on March 31 2021 complied with the statutoryprovisions listed hereunder and also that the Bank has proper Board-processes andcompliance-mechanism in place to the extent in the manner and subject to the reportingmade hereinafter:
We have examined the books papers minute books forms and returns filed and otherrecords maintained by the Bank for the financial year ended on March 31 2021 according tothe provisions of:
(i) The Companies Act 2013 (the Act) and the rules made thereunder to the extentapplicable; (ii) The Securities Contracts (Regulation) Act 1956 (SCRA') and therules made thereunder; (iii) The Depositories Act 1996 and the Regulations and Byelawsframed thereunder;
(iv) Foreign Exchange Management Act 1999 and the rules and regulations madethereunder to the extent of Foreign Direct Investment
Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities andExchange Board of India Act 1992 (SEBI Act'): -
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares andTakeovers) Regulations 2011; (b) Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 (c) The Securities and ExchangeBoard of India (Prohibition of Insider Trading) Regulations 2015; (d) The Securities andExchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018;
(e) The Securities and Exchange Board of India (Share Based Employee Benefits)Regulations 2014 Not Applicable during the period under review; (f) The Securities andExchange Board of India (Issue and Listing of Debt Securities) Regulations 2008;
(g) The Securities and Exchange Board of India (Registrars to an Issue and ShareTransfer Agents) Regulations 1993 regarding the
Companies Act and dealing with client -Not applicable during the period under review;
(h) The Securities and Exchange Board of India (Delisting of Equity Shares)Regulations 2009- Not applicable during the period under review; (i) The Securities andExchange Board of India (Buyback of Securities) Regulations 1998; (not applicable duringthe year) (j) Securities and Exchange Board of India (Bankers to an Issue) Regulations1994; (k) Securities and Exchange Board of India (Merchant Bankers) Regulations 1992; (l)Securities and Exchange Board of India (Depositories and Participants) Regulations1996/2018; (m) Securities and Exchange Board of India (Debenture Trustee) Regulations1993; (n) other laws applicable specifically to the Bank:
(i) The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 readwith The Banking Regulation Act 1949. (ii) The Nationalised Banks (Management andMiscellaneous Provisions) Scheme 1970.
(iii) Bank of Maharashtra (Shares and Meeting) Regulations 2004. (iv) Reserve Bank ofIndia Act 1934.
(v) Banking Regulations Act 1949. (vi) Banker's Book Evidence Act 1891.
(vii) Banking Ombudsman Scheme 2006.
(viii) The Banking Companies (Period of Preservation of Records) Rules 1985.
(ix) The Securitisation and Reconstruction of Financial Assets and Enforcement ofSecurity Interest (SARFESI) Act 2002 and The Security Interest (Enforcement) Rules 2002.
(x) The Prevention of Money Laundering Act 2002 and The Prevention of Money Laundering(Maintenance of Records) Rules
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India. -Not Applicable
(ii) The Listing Agreements entered by the Bank with BSE Limited and National StockExchange of India Limited;
During the period under review the Bank has complied with the provisions of the ActRules Regulations Guidelines Standards etc. mentioned above except that the Bank hasreceived show cause notices and awarded penalty or delayed fees/ charges as disclosed bythe Bank in point no.9.6 of Schedule 18 to the Audited Financial Statements of the Bankfor FY 2020-2021.
We further report that
The Board of Directors of the Bank is duly constituted with proper balance of ExecutiveDirectors Non-Executive Directors and Independent Directors. The changes in thecomposition of the Board of Directors that took place during the period under review werecarried out in compliance with the applicable provisions of the Act. Further adequatenotice is given to all directors to schedule the Board Meetings agenda and detailed noteson agenda were sent at least seven days in advance as required under LODR 2015 and asystem exists for seeking and obtaining further information and clarifications on theagenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members' views are capturedand recorded as part of the minutes.
We further report that there are adequate systems and processes in the Bankcommensurate with the size and operations of the Bank to monitor and ensure compliancewith applicable laws rules regulations and guidelines. However penalties have beenimposed on the Bank by Regulatory
Authorities in certain cases during the period under review and same is disclosed byBank in point no.9.6 of Schedule 18 of financial statements for FY 2020-2021.
We further report that during the audit period the Bank has
(i) Issued Equity Shares to Government of India on Preferential basis;
(ii) Issued Tier II Bonds during the period under review.
(iii) taken no major decisions by the members in pursuance to Section 180 of theCompanies Act 2013 (iv) No Merger / amalgamation / reconstruction etc.
(v) No Foreign Technical Collaborations
For Joshi & Joshi
(Formerly known as Apte Joshi & Associates)
Harshal Raghavendra Joshi
FCS: 9897 CP: 10450
Date: April 292021