Your Directors have pleasure in presenting the Annual Report of theBank with the audited Balance Sheet Profit & Loss Account and the Report on Businessand Operations for the year ended March 312022.
1. MANAGEMENT DISCUSSION AND ANALYSIS:
1.1 Economic and Banking Scenario 2021-22:
The last couple of years have been difficult for world economy onaccount of COVID-19 pandemic. Global growth is expected to decelerate from 5.5 percent in2021 to 4.1 percent in 2022 reflecting continued COVID-19 flare-ups diminished fiscalsupport and lingering supply bottlenecks. The lockdowns and social distancing norms havereduced the growth momentum.
The economic shock of the pandemic has been weathered well by thecommercial banking system in India. Calibrated fiscal and monetary support was providedcushioning the vulnerable during the lockdown and boosting consumption and investmentwhile unlocking. A favorable monetary policy ensured abundant liquidity and immediaterelief to debtors while unclogging monetary policy transmission. Indian economy isexpected to expand 8.7% in FY 2021-22 after a contraction of 7.3 percent in FY 2020-21.India's GDP is expected to grow by 7.2 percent in FY 2022-23 due to global geo-politicalsituation arising out of the Russia-Ukraine confilct and weak domestic demand coupled withsurging commodity prices.
Gradual unlocking of the economy record vaccinations improvement inconsumer demand continued policy support towards industries by the government in the formof AtmaNirbhar Bharat Abhiyan and further reinforcements in 2021-22 have led to an upturnin the performance of the industrial sector. Rural Demand remains buoyant due to improvedagriculture production for 2021-22. Urban demand has been gaining strength due toimprovement in economic activity. RBI has projected real GDP growth for 2022-23 at 7.2%.The government's thrust on capital expenditure coupled with initiatives such as theproduction linked incentive (PLI) scheme should bolster private investment activityamidst improving capacity utilization deleveraged corporate balance sheets higher offtake of bank credit and congenial financial conditions.
2. PERFORMANCE HIGHLIGHTS 2021-22:
i. Total Business of the bank has increased from Rs. 281660 crore ason 31.03.2021 to Rs.337534 crore as on 31.03.2022. Business of the Bank showcased annualgrowth of 19.84%.
ii. Total deposits of the bank increased from Rs.174006 crore as on31.03.2021 to Rs. 202294 crore as on 31.03.2022. Total deposits have showcased annualgrowth of 16.26%.
iii. CASA deposits have increased from Rs.93945 crore as on 31.03.2021to Rs.117036 crore as on 31.03.2022 showcasing annual growth of 24.58%.
iv. Gross advances have increased from Rs.107654 crore as on31.03.2021 to Rs.135240 crore as on 31.03.2022. Gross Advances have shown year on yeargrowth of 25.62%.
v. Operating Profit increased 22.42% to Rs.4847.87 crore in year ended31.03.2022 from Rs. 3960.08 crore in year ended 31.03.2021. During the same period NetProfit increased 109.28% to Rs.1151.54 crore from Rs. 550.25 crore.
2.1 Sectoral Deployment of Credit:
(Rs in crore)
|Percentage to Total Outstanding ||O/s as on 31.03.2022 ||Percentage to total O/s ||O/s as on 31.03.2021 ||Percentage to total O/s |
|Industry ||44045.15 ||32.57% ||34129.68 ||31.70% |
|Of which || || || || |
|i. Infrastructure ||21643.82 ||16.01% ||14347.11 ||13.33% |
|ii. Chemicals Dyes Paints etc ||1357.02 ||1.00% ||1121.67 ||1.04% |
|iii. Petroleum ||600.74 ||0.44% ||588.66 ||0.55% |
|iv. Iron and Steel ||566.80 ||0.42% ||859.89 ||0.80% |
|v. NBFCs and Trading ||11132.79 ||8.24% ||9232.69 ||8.58% |
|vi. Engineering ||1235.38 ||0.91% ||1245.15 ||1.16% |
|vii. Construction ||128.57 ||0.10% ||80.94 ||0.08% |
|viii. Other Industries ||7380.03 ||5.46% ||6653.57 ||6.18% |
|Agriculture ||18968.15 ||14.02% ||16201.98 ||15.05% |
|MSME ||26279.08 ||19.43% ||23132.87 ||21.49% |
|Housing ||21103.06 ||15.60% ||17909.85 ||16.64% |
|Education ||1458.85 ||1.08% ||1287.73 ||1.20% |
|Exports ||1385.01 ||1.02% ||1310.99 ||1.22% |
|Commercial Real estate ||1253.84 ||0.93% ||1508.58 ||1.40% |
|Gross Advances ||135240.00 || ||107653.77 || |
2.2 Quality and NPA Management
The Bank has set up "Asset Recovery Cells (ARC)" at
all zonal offices to ensure focused efforts for upgradation and NPArecovery.
Twelve Asset Recovery Branches (ARBs) have also been setup across the Bank's Zones for large NPA a/cs more particularly where legal actions are inprogress so as to make focused follow up.
Further Bank has established Stressed Assets ManagementVertical by way of a separate dept at HO under which Bank has started 4 (four)Stressed Assets Management (SAM) branches in Delhi Mumbai Hyderabad and Pune where NPAswith balance of Rs.5 crore and above are monitored. Focused follow up is undertaken toimprove NPA recovery.
The Loan Tracking Cell has been established where Bankundertakes telephonic follow up on daily basis with borrowers of stressed accounts /slippages and repayment of overdues is insisted. This will result in improving recoveryand upgradation of NPAs.
The Bank has also set up separate Cells at its Head Office foridentification of Wilful Defaulters gearing up the actions under DRT / SARFAESIActs.
Bank has been implementing Suo Motu nondiscriminatory andnon-discretionary One Time Settlement (OTS) Schemes. Monitoring of the performance underthe schemes is undertaken from Recovery Department Head Office on daily basis. During FY2021-22 the Bank introduced following such OTS schemes:
1. Maha Rah at Yojana 2021-22:- Scheme for the settlement of NPAaccounts in Doubtful-I Doubtful-II Doubtful-III Loss and TWO accounts having LedgerBalance up to Rs.1.00 crore as of 31.03.2021. This scheme is effective from 01.06.2021.
2. Maha Samadhan Yojana 2021-22 : Scheme for the settlement of NPAaccounts in Doubtful-I Doubtful- II Doubtful-III Loss and TWO RWO accounts havingLedger Balance above Rs.1.00 crore and up to 50.00 crore as of 31.03.2021.
3. Maha Santavana OTS Scheme 2021-22 : All NPA
Housing Loan (& Top up Loan) accounts in DB1 DB2 Loss and TWO /RWO as of 31/03/2021 where Borrower or Co-borrower is deceased.
Bank has also made intensive follow up with the defaulting borrowersthrough visits letters notices Recovery Camps Lok Adalats Mahabank Adalats actionsunder SARFAESI / DRT Act. Services of Recovery Agents / Resolution Agents are engaged soas to have an early resolution. The Bank has also initiated action under the provisions ofthe Insolvency & Bankruptcy Code 2016 against various large NPA borrowers.
Position of Non-Performing Assets is as under
2.3 Foreign Exchange Business
Currently the bank has 37 B Category Branches across the countrycatering to the International business needs of the customers of the Bank apart from TIBBat Mumbai as "A" category Branch. The Merchant Business for FY 2021-22 stood atRs 34251.01 crore. The performance during FY 2021-22 can be seen below:
|Particulars ||2021-22 ||2020-21 ||Percentage of (+/-) || |
|Total FEX Turnover ||Business ||555982.93 ||634389.59 ||(-12.36%) |
|Merchant Turnover ||Business ||34251.01 ||30451.46 ||12.48% |
|Profit in FEX Business ||129.48 ||153.09 ||(-15.42%) || |
The breakup of Investments into SLR & Non-SLR investments is givenbelow:
The Gross Investments as on 31.03.2022 stood at Rs 69092.68crore of which Rs 54718.95 crore are SLR securities and Rs 14373.73 crore are Non-SLRSecurities. The excess SLR securities as on 31.03.2022 stood at Rs 20144.61 crore.
The net investments (net of provisions) stood at Rs 68589.97crore as on 31.03.2022 as compared to Rs 68111.65 crore as on 31.03.2021. Investmentsunder Held to Maturity (HTM) category consist of 68.94% while Available for Sale (AFS)comprised of 31.06% of total investment portfolio as of 31.03.2022. The net interestincome from investment activity increased to Rs 4387.93 crore from Rs 4158.32 croreduring the last year (up by 5.52%).
The Non-Performing Investments stood at Rs 446.37 crore as on31.03.2022.
2.5 Merchant Banking
The Bank handled 30 issues (previous year 44 issues) of Commercialpaper amounting to Rs 30950 crore (previous year Rs 32745 crore) for its clients as anIssuing and Paying Agent (IPA) during FY 2021-22.
|Particular ||Amount as on 31.03.2022 ||Amount as on 31.03.2021 |
|Total Borrowing ||7746.74 ||4238.75 |
|of which Borrowing RBI under LAF ||500.00 ||500.00 |
|of which Borrowing Market REPO ||0.00 ||0.00 |
|Of which Borrowing TRePS (G-Sec) ||3194.64 ||0.00 |
|Of which Refinance from || || |
|NABARD ||0.00 ||0.00 |
|EXIM BANK ||0.00 ||0.00 |
|NHB ||0.00 ||0.00 |
|MUDRA ||139.00 ||0.00 |
|SIDBI ||17.35 ||51.55 |
|Borrowings in the form of Bonds & debentures capital instruments ||3895.70 ||3605.70 |
|Borrowings outside India ||0.00 ||81.45 |
|Others ||0.05 ||0.05 |
2.7 Depository Services
Bank is Depository Participant (DP) of Central DepositoryServices of India Ltd. (CDSL) since September 1999.
The Bank has also introduced Basic Services DEMAT AccountFacility (BSDA)
Bank has introduced ASBA through net-banking and UPI.
Bank is corporate agent for carrying out Bancassurance businessunder all three segments i.e. Life Insurance General Insurance and Health Insurance.
Performance during FY 2021-22
(Rs. in Crore)
|Insurance ||No. of Policies ||Premium ||Commission |
|Life ||15022 ||75.29 ||15.47 |
|General ||144648 ||51.34 ||6.06 |
|Health ||31298 ||50.30 ||6.77 |
|Total ||190968 ||176.93 ||28.30 |
Company wise insurance business from 01.04.2021 to 31.03.2022:
(Rs. In Crore)
|Category ||Insurer ||NOP ||Premium ||Commission |
|Life ||AVIVA Life Insurance ||11682 ||61.44 ||13.60 |
|Insurance ||LIC of India ||3340 ||13.85 ||1.87 |
|General ||Future Generali ||119282 ||39.22 ||4.46 |
|Insurance ||United India ||44849 ||29.89 ||3.49 |
|Health Insurance ||Manipal Cigna ||11815 ||32.53 ||4.88 |
|Total || ||190968 ||176.93 ||28.30 |
2.9 Government Business
During FY 2021-22 536866 challans of Direct Taxes and 35419challans of Indirect taxes were collected by the branches. Total commission to the tune ofRs 0.65 Crore was received on tax collection business from Central/ state Government andother business in current year.
As a service to senior citizens the Bank is processing andcrediting monthly pension payments of more than 1.05 lakh Central Government DefenceRailway and Telecom pensioners at Central Pension Processing Cell (CPPC) Pune. Thecommission on Government Business (Pension) for the Year 2021-22 is Rs. 10.25 crore.
Bank has opened 102784 new PPF accounts 18045 new SCSSaccounts and 12174 new accounts under Sukanya Samruddhi Scheme in FY 2021-22
2.10 Income Expenditure and Profitability
The total income of the Bank stood at Rs 15671.70 crore in FY
2021-22 as compared to Rs.14496.21 crore in FY 2020-21.
The detailed income/expenditure components are as under:
(Rs in crore)
|Particulars ||2021-22 ||2020-21 ||Variation (in %) |
|Interest / discount on advances / bills ||8231.56 ||7153.93 ||15.06 |
|Income on investments ||4384.69 ||4153.40 ||5.57 |
|Interest on interbank lending & other Interest ||402.97 ||561.21 ||(28.20) |
|Total interest income ||13019.22 ||11868.54 ||9.70 |
|Non-interest income ||2652.48 ||2627.67 ||0.94 |
|Total Income ||15671.70 ||14496.21 ||8.11 |
|Interest on deposits ||6458.17 ||6525.95 ||(1.04) |
|Interest on borrowings ||30.91 ||49.65 ||(37.74) |
|Other Interest expenditure ||485.74 ||395.47 ||22.83 |
|Staff expenses ||2070.59 ||2255.21 ||(8.19) |
|Other Operating expenses ||1778.42 ||1309.84 ||35.77 |
|Total Non-interest expenses ||3849.01 ||3565.06 ||7.96 |
|Total Expenses ||10823.83 ||10536.13 ||2.73 |
|Operating Profit ||4847.87 ||3960.08 ||22.42 |
|Provisions and Contingencies ||3696.33 ||3409.84 ||8.40 |
|Net Profit ||1151.54 ||550.25 ||109.28 |
2.11 Financial Ratios
The various financial parameters of the Bank during FY 202122 can beseen below:
|Particulars ||2021-22 ||2020-21 |
|EPS (INR) ||1.72 ||0.88 |
|Cost to Income Ratio (percent) ||44.26 ||47.39 |
|Return on assets (percent) ||0.55 ||0.3 |
|Return on equity (per cent) ||11.45 ||7.17 |
|Book value per share (INR) ||15.12 ||12.22 |
|Profit per Branch (INR in Lakh) ||56.95 ||28.02 |
|Profit per employee(INR in Lakh) ||9.05 ||4.19 |
|Business per Branch (INR in Crore) ||166.65 ||143.11 |
|Business per employee(INR in Crore) ||26.53 ||21.45 |
|Interest income as per cent to Average working funds ||6.26 ||6.42 |
|Non-Interest income as per cent to average working funds ||1.27 ||1.42 |
|Net Interest Margin (per cent)* ||3.15 ||2.84 |
|Operating Profit as per cent to average working Funds ||2.33 ||2.14 |
|Staff expenses as a percent to average working funds ||1.00 ||1.22 |
|Proposed Dividend (per cent) ||5.00 ||0.00 |
|Net worth (' Crore) ||10175.85 ||8019.20 |
|CRAR (%) (Basel II) ||16.48 ||14.49 |
|Of which Tier I CRAR (%) (Basel II) ||12.38 ||10.98 |
Bank has raised capital of Rs. 403.70 crore through QIP in July2021 @ Rs. 23.70 per share.
Bank has raised Rs. 1000 Crore Tier 2 Bond from LIC in themonth of October 2021.
Bank has raised Rs.290 Crore Tier 1 Bond in the month of March2022.
2.13 Net worth
The Bank's Net Worth stood at 10175.85 crore as on 31.03.2022 asagainst Rs. 8019.20 Crore as on 31.03.2021.
2.14 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 16.48% as on 31.03.2022 againstthe minimum requirement of 11.50% (including CCB) prescribed by RBI in terms of Basel IIInorms. The Common Equity Tier 1 Ratio stood at 12.17%.
The Board of Directors of your Bank has recommended a dividend ofRs.0.50 per equity share(5%) of Rs. 10/- each on the paid-up Share Capital of the Bank forthe financial year 2021-22. The final dividend shall be paid to the members whose namesappear in the Register of Members as well as the Beneficial Ownership Position provided byNSDL/CDSL as at the close of business hours on 21st June 2022 (Record date).
3. RESOURCES: BRANCH NETWORK HUMAN RESOURCES IT INFRASTRUCTURECUSTOMERS RESPONSIVENESS AND OTHERS
3.1 Branch/ATM Network
As on 31.03.2022 the Bank had 2072 banking outlets spread across allthe States and six union territories as compared to 1964 as on 31.03.2021. The bankingoutlets comprised of 2022 branches and 50 fixed point outlets served by Bank Mitrasnamed as Customer Service Point (CSP).
During the year ended 31.03.2022 the Bank opened 108 new branches andset its footprint in 73 additional districts. Bank also opened 50 fixed point outletsserved by Bank Mitras named as Customer Service Point (CSP). In the same period 1 branchwas converted into CSPs and one branch was merged with another branch. During the branchconversion and merger utmost care was taken to ensure that customers are not put into anyinconvenience in availing banking services.
The branch network includes specialized branches in the area of ForeignExchange Government Business Treasury and International Banking Industrial FinanceMicro Small and Medium Enterprises Hi-tech agriculture etc. Area wise classification ofbranches as on 31.03.2022 is as under:
|Sr. No. Classification ||As on 31.03.2022 ||As on 31.03.2021 |
|1 Rural ||611 ||611 |
|2 Semi-Urban ||511 ||461 |
|3 Urban ||412 ||372 |
|4 Metro ||488 ||471 |
|Total ||2022 ||1915 |
ATM / CRM Network
The Bank had 2128 automated teller machines (ATMs) and cash recyclermachines (CRM) as on 31.03.2021 as compared to 1950 as on 31.03.2021. During the yearended 31.03.2022 the Bank installed 91 ATMs and 87 CRMs.
| ||31.03.2022 ||31.03.2021 |
|Offsite ||429 ||445 |
|Onsite ||1699 ||1505 |
|Total ||2128 ||1950 |
3.2 Human Resources ManagementThe Bank has put in placecomprehensive HRM Policies that provides the road map for acquiring appropriate & needbased human resources its development through training job enrichment reward andrecognition for better performance career progression welfare and retention
Recruitment: During FY2021-22 the Bank has recruited employees asunder:
289 Officers in Scale I 130 officers in Scale II 1 in Scale III cadreand 178 Clerks. During FY 2021-22 1010 employees exited from service on account ofretirement VRS resignation termination and death.
Inter scale promotions of officers were carried out during FY 2021-22.Following number of Officers were promoted.
|JMGS-I TO ||MMGS- II to ||MMGS-III TO ||SMGS-IV TO ||SMGS-V TO ||SMGS-VI TO |
|MMGS-II ||MMGS III ||SMGS-IV ||SMGS-V ||SMGS-VI ||TEGS-VII |
|171 ||156 ||70 ||36 ||13 ||6 |
During FY 2021-22 58 Clerks were promoted to Officer Cadre in Scale Iand 667 Part time Sub-staffs were promoted to Substaff cadre. The Cadre wise staffposition as of 31.3.2022 with sex ratio percentage is as under:
|Category ||Male ||% ||Female ||% ||Total |
|Officers ||4788 ||71.72 ||1888 ||28.28 ||6676 |
|Clerks ||2560 ||66.12 ||1312 ||33.88 ||3872 |
|Sub-staff ||1915 ||88.90 ||239 ||11.10 ||2154 |
|Part Time Substaffs ||19 ||100 ||- || ||19 |
|Total ||9282 ||72.97 ||3439 ||27.03 ||12721 |
The Bank has been complying with the reservation policy of Govt. ofIndia. Special Cells at Head Office and all Zonal
Offices are functioning to monitor the implementation of thereservation policies and to redress grievances of SC/ ST/OBC & Physically challengedemployees as well as exservicemen. The Bank has designated Chief Liaison Officers at HeadOffice and has set up SC/ST Cells at all Zonal Offices. The staff position detailscategory wise is as under
|Caste category wise cadre strength as on 31.03.2022 || || || || || || || || |
|Cadre ||SC ||ST ||OBC ||EWS ||GEN ||Total ||PWD ||EX SERVICEMAN |
|Officer ||1058 ||495 ||1759 ||32 ||3332 ||6676 ||164 ||35 |
|Clerk ||645 ||339 ||941 ||25 ||1922 ||3872 ||105 ||135 |
|Sub-Staff ||719 ||215 ||491 ||0 ||729 ||2154 ||20 ||140 |
|PTS ||3 ||2 ||7 ||0 ||7 ||19 ||0 || |
|Total ||2425 ||1051 ||3198 ||57 ||5990 ||12721 ||289 ||310 |
|% of Total Staff Strength ||19.06% ||8.26% ||25.14% ||0.45% ||47.09% || ||2.77% ||2.44% |
Compassionate Appointments - A Scheme for CompassionateAppointments' / Payment of Ex-gratia lumpsum amount" to /of heirs of employees dyingin harness or retiring due to incapacitation framed as per the directives of Government ofIndia has been implemented. The details of compassionate appointments for the year2021-22 is as under:
|Compassionate Appointments || |
|Cadre ||No. of employees |
|Clerk ||23 |
|Sub-staff ||8 |
|Total ||31 |
The Contributory Group Insurance Mediclaim Policy for all employeesincluding retired employees has been renewed w.e.f. 01.4.2020 and the Sum insured is uptoRs.10.00 Lacs for existing employees. The details of renewal of policy are as under:
|Employees ||No.of Employees ||Premium paid (in Rs. ) |
|Existing ||697 ||11965432 |
|Retired ||1440 ||23554126 |
|Total ||2137 ||35519558 |
The Bank has acknowledged the necessity of welfare measures beyond theprovisions of service conditions. With this motive bank has initiated and implementedvarious Welfare measures through Staff Welfare Committee. The reimbursement of examinationfees and payment of cash incentive /Honorarium in respect of courses from Indian Instituteof Banking & Finance MBA from reputed institutions FRM BIRD PRM CFA etc. This hasbeen widened by adding 38 courses eligible for reimbursement of examination fees. A policyfor granting special leave and 100% reimbursement of hospitalization expenses to officerswhen he/she meets with an accident/ injury while on duty is in place. Bank has initiated ascholarship scheme for wards of employees who have excel performance in academics.
|SN Course / Exam ||Award Rs. ||Stream ||Min. % of marks |
| || || ||Others ||Sub staff |
|1. 10th std. ||3000 ||N.A. ||85 ||75 |
| || ||Science ||85 ||75 |
|2. 12th std. ||5000 ||Commerce ||75 ||70 |
| || ||Arts ||65 ||60 |
| || ||Science ||70 ||60 |
|3. Graduation ||7000 ||Commerce ||70 ||60 |
| || ||Arts ||60 ||55 |
|4. Post-Graduation/ PGDBM ||10000 ||N.A. ||65 ||60 |
|5. Foreign MS / Graduation / PG ||20000 ||N.A. ||-- ||-- |
| || ||BE / B. Arch / ||60 ||60 |
| || ||LL.M / Law ||60 ||60 |
|6 Professional . Courses / Degree ||7000 ||MBBS BDS BHMS BAMS ||55 ||55 |
| || ||Hotel Mgmt / Pharmacy ||60 ||60 |
| || ||CA / CS / FCA / ICWA ||Pass Class || |
|7. Professional PG ||10000 ||ME / M.Phil / MBA MPM. M.Tech / MCA/Ph.D ||Pass Class || |
In the name of Dr. Babasaheb Ambedkar Bank has initiated Scheme tofelicitate & reward the top 3 performing branches in terms of disbursing creditfacilities to SC/ST communities.
LEARNING & DEVELOPMENT: The Bank has a training system whichfacilitates attention to regular periodic assessment of skill gaps at various levels inrelation to existing and emerging business opportunities. Skill building in credit Forexcustomer relationship management marketing of products and services credit monitoringand recovery risk management technology based banking branch management complying withstatutory legal and policy requirements and preventive vigilance received specialattention during the year. Learning and Development (L&D) strategy has been customizedfor enriching employees through virtual / online training programs enabling them to availthese services from anywhere.
Training programs were also held on thrust areas like financing MSMEsretail lending agriculture finance soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 1.4.2021 to31.03.2022 are as under-
|Cadre ||No. of Programmes Training Days ||Employees Trained ||Cadre |
|Officers ||608 ||4990 ||165 |
|Clerks ||308 ||2119 ||107 |
|Sub-staff ||163 ||1604 ||85 |
|Total ||1079 ||8713. ||357 |
3.3 Technology Initiatives
A. Customer Centric Initiatives FY 2021-22:
During FY 2021-22 Bank has taken multiple initiatives toward servicedelivery to its customers for convenience:
MeitY: Digital Score Card: Ministry of Electronics &Information Technology (MeitY) has set target of 54 crore digital transactions for FY2021-22 where bank has achieved 63.90 crore digital transaction for FY 2021-22. MeitYmonitors the progress of digital payment transactions merchant acquisitions UPI and AEPSsystem resilience on monthly basis and communicates the scores to Banks. Our bank hasmaintained "Good" category performance.
Development of Online Jeevan Pramaan Patra' tool.
This portal has been made available on Bank's website for pensioners tosubmit video based online annual Life certificate without visiting the branch.
WhatsApp Banking and Chatbot Solution forproviding customer services like real-time account balances enquiry mini statementreports latest transaction records real-time alerts submit cheque book request branchlocator ATM locator etc. The solution is also enabled for application of loans throughdigital channels.
Cardless Cash Withdrawal along with other enhancedfeatures through its Mobile Banking platform extending more convenience to its customers.
Paperless processing of Credit Card to encouragepaperless & fast processing of credit card applications. Under this facility an SMSis sent to customer with a link to obtain customer's consent for availing credit cardservice. On clicking the link a webpage is displayed to customer where he/she will submithis/her consent for credit card. Based on consent branch process the credit card requestof the customer.
Bank Debit Card Issuance has reached to 12.26 Million.Bank's Mobile Banking and Internet customer base has reached to 1.89 Million and 1.93Million respectively. During FY 2021-22 fresh Debit Card issuance to customers hasreached a milestone figure of 2.50 million & percentage of digital transactionsincreased to 95.98%.
Bank has introduced its own QR code Standy and onboarded morethan 1 lakh merchants which includes more than 5000 merchants in North East Region
B. Process Centric Initiatives:
Following process related enhancements have been achieved throughintroduction of technology:
Bank has launched rule based stress account monitoring tool"HawkEye" developed by its IT department and the same has been launched forthe Branches & Zones. The tool has enabled real time monitoring and mitigation effortsby the field functionaries towards improvement of overall asset quality for the bank. Thishas resulted in substantial reduction in stress assets over the period with ease ofmonitoring for field functionaries.
Bank has successfully implemented LLMS Pan-India acrossall its branches for processing of loan proposals within expected TAT. Bank hassuccessfully processed 38000+ loan proposals through LLMS.
Digital on-boarding of customers enabling application of loansthrough Bank's Corporate Website & WhatsApp links.
During FY 2021-22 Bank has tied up with many state governmentsviz Maharashtra Madhya Pradesh Bihar Jharkhand Goa as empaneled Agency Bank forSingle Nodal Agency Account and other related banking facilities. Bank has also tied upwith many Govt Corporations in enabling technology platforms to them for handling theircustomer transactions which extended transparency and convenience to the public at large.
C. Infrastructure & Regulatory Initiatives:
Bank has implemented Aadhaar Data Vault. As perdirectives of UIDAI all agencies which store Aadhaar number are required to implement anAadhaar Data Vault a system where a unique Reference Number is allotted against everyAadhaar Number.
During Q2 of FY 21-22 Bank has taken up Pan-India migration ofall branches to New Front End (from Gateway based CBS present in the Bank since 2006). Allbranches have been successfully migrated to New Front End Centralized CBS version. Bank ofMaharashtra is the first Bank having Bancs24 to migrate all its branches to such upgradedversion.
Bank is in the process of setting up Private Cloud architectureat Data Centre and has procured the necessary infrastructure for the same. Bank intends tomigrate some of its utilities to cloud during FY 2022-23.
To strengthen the security architecture Bank has also investedin different industry established latest security tools like DLP (Data LeakPrevention) DAM (Database Access Monitoring) EDR (Endpoint Detection and Response) WAF(Web Application firewall) FRA (Firewall Rule Analyzer) etc to name a few.
Bank has migrated 180 VSAT dependent branches during FY2021-22 to high speed RF links enabling smooth customer service at the branches withoutany infrastructure based disruptions.
Bank's Board has approved Fintech policy which hasunlocked the Fintech adoption arena. With a clear direction & roadmap Bank hasstarted onboarding Fintech companies so as to leverage the benefits of the technologies byway of integration across various Alternate Delivery Channels of the Bank. Bank is alsodigitalizing end to end journey of customers when it comes to offering the bouquet ofBank's loan products. This will help in reducing the TAT and enhanced customer service.
D. Digital Literacy:
As part of its social banking awareness initiatives Bank has beenconducting digital literacy and camps at various remote centers. List of some of the campsconducted during FY 202122 are as under:
Literacy camp was organized for BC Agents on Digital productson-boarding at Aurangabad zone.
Debit cards campaign at Tungan Village by PimpalkhoteBranch-Malegaon Zone exclusively conducted for tribal women where 55 RuPay debit cardswere distributed and the women were trained for utilization.
One Village One Bank- Our Modasa Branch Ahmedabad Zone hasconverted Charanwada Village into 100% digital village. During this drive more than 1000Saving Banks Accounts were opened and Debit Cards and QR codes were given to all eligiblecustomers.
Digital Literacy camp was organized for Senior Citizen atParbada Branch Ahmedabad Zone.
Various Digital Literacy camps were organized in Branches ofNagpur Zone. Total 1000+ plus debit cards were distributed during the campaign.
E. Cyber Security Operations Center (CSOC):
Bank has implemented Cyber Security Operations Center
(CSOC) with state of the art technologies including:
Security Information and Event Management (SIEM) solution.
Anti-Advanced Persistent Threat (Anti-APT) Solution forcombatting advanced attacks.
File Integrity Monitoring (FIM) for detecting unauthorizedchanges to critical file servers.
Privilege Identity Management tool (PIM) a centralizedportal-based console to access the privilege devices servers and applications for all theprivilege users using 2FA.
Network Behavioral Anomaly Detection (NBAD) tool for detectingnetwork anomalies.
F. Awards & Recognitions on Technology front:
Bank was conferred with prestigious "DIGIW UtkarshAward" for securing 1st position on 05.12.2021 by Ministry of Electronics &Information Technology (MeitY) GOI for achieving 1st highest percentage of digitaltransactions under Small & Micro PSBs during 2019-20.
Bank has also bagged the prestigious IBA Award on Best IT Risk& Cyber Security initiatives & Best Fintech Adoption for 2020- 21.
3.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service toensure customer satisfaction throughout the year by implementing all major recommendationsof Goiporia Committee Dr. S.S. Tarapore Committee and Damodaran Committee. As a member ofBanking Codes and Standards Board of India (BCSBI) the Bank has adopted Code of Bank'sCommitment to Customer and Bank's Code of Commitment to MSMEs.
Bank has printed folder called as "My Folder"containing all customer service policies information on service charges guidelines onGovernment Schematic Loans Ombudsman and BCSBI Codes. The same is printed in MarathiHindi and English and supplied to all branches and Zones for making the same available toall customers on demand.
Duly documented policies approved by the Board on"Deposit" "Collection of Cheques" "Redressal ofGrievances" "Compensation" "Operational Procedure for Settlement ofClaims of Deceased Depositors" and Customer Rights Policy are in place.
Customer Service Committees are formed at all branches and theirmeetings are conducted regularly on monthly basis. The Standing Committee on CustomerService at Head Office and Zonal Level Customer Service Committees at Zones meetregularly to address and review various customer related matters and to take steps for animprovement on an ongoing basis.
The Committee of the Board on Customer Service meets onquarterly basis to monitor the quality of the customer service redresses of customergrievances and to ensure customers satisfaction.
Full-fledged grievances redressal machinery in place to respondpromptly to customer grievances. The Bank has started internet based mechanismStandardized Public Grievances Redressal System (SPGRS) for lodging the 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. No. Particulars ||2021 22 ||2020 21 |
|1 Customer complaints at the beginning of the year ||19 ||296 |
|2 Complaints received during the year ||3236 ||3760 |
|3 Complaints redressed during the year ||3249 ||4037 |
|4 Complaints pending at the end of the year ||06 ||19 |
3.5 KYC / AML
The Bank has Board approved KYC-AML-CFT Policy in place. The Policy isthe foundation on which the Bank's implementation of KYC norms AML standards and CFTmeasures are based.
The full KYC compliance entails staff education as well as customereducation for which the Bank takes various measures on a regular basis. A comprehensivelist of KYC documents is uploaded on the Bank's web site for the benefit of customers.Regular training sessions are conducted on KYC-AML-CFT guidelines at the Bank's trainingestablishments to sensitize the employees.
3.6 Risk Management
The Bank has put in place Risk Management Policies and Strategieswhich enables it to identify measure monitor and manage risk efficiently and establishescontrol systems in line with the Bank's aggregate Risk Appetite. Bank has constituted RiskManagement Committee at Board level to monitor the risk at Bank level in accordance withRBI Guidelines. Bank has also constituted sub-committees headed by Top Management of Bank.
The Bank is Compliant to the RBI guidelines on disclosure requirementsunder Basel III Capital Regulations.
3.7 Marketing & Publicity
Bank adopted an integrated marketing strategy to promote Retail AgriMSME products and Digital Banking Services. The marketing team participated in variousexpos in the physical and virtual modes under the Retail Agri & MSME sectors forincreasing our presence and business mobilization. Bank advertised in major sportingevents like International Cricket India Vs England Property Expo at Sharjah etc.
In FY 2021-22 Bank created new benchmarks in all mediums like TVRadio Digital Print etc. Bank has done campaigns with various National & RegionalTV Radio Print & Digital Channels for creating awareness about the Bank andPromotion of various products & services.
In Digital Marketing Bank has done advertisement campaigns in majore-commerce news portals & Google Ads. Bank emphasized SEO for making the corporatewebsite more user- friendly.
In social media Bank reached 1 million followers on 4 major platformscombined Facebook Instagram YouTube & Twitter.
3.8 Citizen's Charter
The Bank has adopted the Citizen's Charter since 2000-01 which detailsthe duties and responsibilities of the Bank towards its customers. The charter isdisplayed at all the branches 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 equitableand sustainable economic development by timely and hassle-free availability of credit forproductive purposes to Small and Marginal Farmers Micro and Small Enterprises RetailTraders Professional and Self Employed Women Entrepreneurs and entrepreneurs fromeconomically weaker sections. Total Priority Sector Lending (PSL) of the Bank (includinginvestments & PSLC sale transaction) stood at 43.37% of ANBC as against the mandatorytarget of 40%. The advances under Priority Sector (excluding investment & includingPSLC sale transaction) as of 31st March 2022 (Post Audit) stood at Rs. 42638.78 Crore(40.89% of ANBC). Bank has carried PSLC Sale transaction of Rs. 12500 Crore and receivedpremium of Rs. 188 Crore during FY 2021-22.
Bank has achieved all mandatory targets as stipulated by RBI underPriority Sector Lending during FY 2021-22 on Quarterly Average Basis.
Bank sanctioned fresh loans of Rs. 6372 Crore for Agriculture andallied activities during FY 2021-22. The total outstanding advances to agriculture sectorreached a level of Rs. 18968.15 Crore (including PSLC Sale transaction of Rs. 1000 Cr)as on 31.03.2022. Total Agriculture (including investments & including PSLC saletransaction) stood 18.81% of ANBC. Bank has achieved all mandatory targets (on Quarterlyaverage basis) under Priority Sector and Agriculture including sub-targets during FY2021-22.
The bank focused on growth of Investment Credit under Agricultureduring FY 2021-22 and disbursed Rs.2571 Crore. As a result Investment Credit of Bankgrew by 23.62% and MKCC portfolio of the Bank grew by 10.04 % over previous year.
The bank also devised cluster based scheme "Mahabank KrishiSamruddhi Yojana" to cover the major Agriculture Investment activities of Agro andFood processing industries which is becoming popular due to competitive ROI and customer-friendly features.
Over last few years Agriculture sector has been repeatedly hit byvagaries of natural calamities like drought flood hailstorms etc. Within the regulatoryguidelines Bank has extended the relief measures to farmers from time to time. Our bankis also successfully implementing farm loan waiver scheme of Govt. of Maharashtra. Bankhas efficiently implemented various other Farm Loan Waiver schemes declared by respectivestates.
The Bank undertook awareness/sensitization program and locationaltrainings for the branches for increasing advances to agriculture by providing hassle freecredit to farmers.
4.2.1 Mahabank Kisan Credit Card
This scheme gained popularity especially in rural areas where it isbeing propagated successfully and vigorously. The bank organized Credit Camps duringKharif 2021 season across the country. During FY 2021-22 the bank sanctioned total 2.80lakh Kisan Credit Cards to farmers amounting to Rs.4628 crore. Credit flow to MKCCbeneficiaries reached to a level of Rs.8255 Crore as on 31.03.2022. As per regulatoryguidelines Bank has also implemented a special drive for issuing KCCs to farmers forAgriculture as well as for Animal Husbandry and Fisheries. The scheme is helping small andscattered dairy farmers fishermen and entrepreneurs in animal husbandry to grow theirbusiness and also becoming popular in rural and semi urban areas.
4.3 Micro Small and Medium Enterprises (MSME)
MSMEs are the growth engine for Indian economy. They have highestcontribution in generating employment both directly as well as indirectly. DuringFY2021-22 MSMEs were most affected due to second wave of COVID-19 related distresslockdown labor migration etc. Bank has extended support to MSMEs and has implementedvarious relief measures given to MSME borrowers by Government of India and Reserve Bank OfIndia.
i. Additional Funding extended under Emergency Credit Line GuaranteeScheme (ECLGS) to eligible borrowers.
ii. Additional finance extended under Adhoc Line of Credit COVID-19Scheme
iii. For street vendors Bank of Maharashtra has extended loans viaPMSVANIDHI scheme to revive their business.
iv. Finance is extended to eligible projects on the healtcare sectorunder Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS).
v. Finance is extended under Loan Guarantee Scheme under Covid AffectedTourism Service Sector (LGSCATSS) to provide relief to eligible Travel & TourismStakeholders viz. By of need based financial assistance who have been adversely impactedby the Covid-19 pandemic.
Bank's lending to Micro Small and Medium Enterprises increased by 14%as compared to Mar 2021 and recorded growth of Rs. 3146 crore in absolute terms. TotalMSME advances of the bank stood at Rs.26279.08 crore as on 31.03.2022.
Bank's performance in MSME portfolio in FY 2021-22 can be seen below inthe table -
|S. Particulars No ||Actual ||Target |
|1 % of Micro to Adj. Net Bank Credit ||9.69% ||7.50% |
|2 YOY Growth under Micro Enterprises ||-9.89% ||10% |
|3 YOY Growth under Micro & Small enterprises O/s ||13.08% ||20% |
|4 Share of Micro against to MSE O/s ||67.95% ||60% |
Bank is supporting credit needs of small business and nonfarmenterprises engaged in manufacturing trade and services up to Rs. 10 lakh by way ofPradhan Mantri Mudra Yojana (PMMY). During the year ended 31.03.2022 the Bank hassanctioned Rs.2704 crore under PMMY against the target of Rs. 2375 crore therebyachieving 113.85% of target.
Other Major Achievements
To improve lending under MSME segment Bank has taken variousinitiatives. Bank has launched credit campaigns and conducted MSME Outreach Expos acrossIndia. The Maha MSME Campaign was conducted from 09.08.2021 to 30.09.2021. During thecampaign MSME advances amounting to Rs. 2332 crore were sanctioned and Rs. 1828 crorewere disbursed.
The MSME Credit Outreach Campaign was conducted from 01.10.2021to 31.12.2021. During the campaign period MSME advances amounting Rs. 3843 crore weresanctioned and Rs. 3211 crore were disbursed.
The Maha MSME Campaign 2022 (M2 2022) was conducted from19.01.2022 to 16.03.2022. During the campaign period MSME advances amounting Rs. 1922crore were sanctioned and Rs. 1633 crore were disbursed.
To garner desired level of quality new/takeover MSME businessBank had launched a special drive - "Maha Swagatam" from 21.10.2021 to31.03.2022.During the campaign 343 accounts amounting Rs. 1103 crore were sanctioned.
Bank has launched digital lending products under colendingarrangement with Loan Tap Mas Financial Services Pvt Ltd and LendingKart Finance Pvt Ltdwhich enable end to end digitization of MSME loans.
Finance is being extended with very competitive ROI under Bank'svarious customized schemes like Maha GST Maha Contractor Maha Hospitality scheme etc.
Bank has launched Mahabank Channel Financing Scheme which meetsthe credit demands of corporates and their MSME channel partners.
4.4 Banks exposure to select segments
(Rs. In Crore)
|Sr Sector No ||As on 31.03.2022 ||As on 31.03.2021 ||% increase (+/-) |
|1 Micro / SHG Finance ||557 ||365 ||(7.12) |
|2 Weaker Section ||12735 ||11863 ||7.67 |
|3 SC/ ST Beneficiaries ||4234 ||2911 ||45.44 |
|4 OBC Beneficiaries ||9108 ||7605 ||19.76 |
|5 Minority Communities ||4481 ||3814 ||17.49 |
5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK
5.1. Credit Flow to Retail Sector
Bank is providing retail loans for salaried persons professionalsbusinessmen and pensioners for purchase of housing properties/ plots repair/ renovationof house purchase of consumer durables two/four wheeler vehicles education and loan forother personal needs etc. Total Retail portfolio of the Bank as on Mar'22 is Rs. 35422.22Crore.
|SN Scheme ||Brief Description ||Portfolio as of Mar '22 ||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. 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" ||21103.06 ||1.02 |
|2 Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme ||Bank has launched schemes for purchase of New four wheelers i.e. Car Multi Utility vehicles (MUVs) SUV etc. for personal use (i.e. not for hiring/ ferrying passengers) for individuals (18 years and above). ||2089.99 ||1.24 |
|3 Model Education Loan Scheme ||Bank has implemented 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. ||1458.85 ||1.60 |
|4 Loan Against SelfOccupied 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. ||1259.08 ||1.82 |
|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". 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. ||1268.59 ||0.24 |
|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". ||3296.68 ||0.28 |
|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". ||538.06 ||0.89 |
5.2. Centralized Processing of loans
Bank has established Centralised Processing Cells (CPCs) for processingand sanctioning of commercial and retail advances at all its zones to improve theturnaround time (TAT) in facilitating timely credit.
All mortgage based Retail loan or wherever immovable property areoffered as collateral for mortgage purpose irrespective of the loan amount to be processedand sanctioned at the CPC-R.
These loans are as under:
Top up Loan
Loan against self-occupied Property
Education Loan (Incase immovable property is offered ascollateral)
Vehicle Loan (Incase immovable property is offered ascollateral)
All other Retail Loans to be sanctioned by respective branches.
All Branches (Categorized up to Scale -4) within urban conglomerate orwithin 25 km to 30 km radius in other place (as per discretion of ZMs) from location ofCPC-R will be mapped with it.
Work Flow Process - CPC Retail
Mapped Branches within urban conglomerate or within 25 km to 30km radius in other place (as per discretion of ZMs) will scout the proposals and send theapplication to CPC-R for sanction after verifying the relevant documents as perchecklist.
Branches which are not mapped to CPC-R will be scoutingappraisal due diligence and sanction within their delegated powers. Additional duediligence agencies will do supplementary verification disbursement & Post sanctionfollow up etc. will be carried out by branches. Beyond delegated powers proposals will besend to next sanctioning authority routed through CPC -R.
All Pune based CPC cells i.e. Pune City Pune East and Pune WestCPCs are merged into one Maha Bank Retail Point for processing all the mortgaged basedloans in Pune at a single place for mapped branches and above the delegated sanctioningpowers of unmapped branches. Similarly Mumbai City & Mumbai Suburb are also mergedinto one Maha Bank Retail Point.
5.3 Housing Finance Branches:
Bank has already in place exclusive Specialized Housing Finance Branch(HFB) at Yashomangal Pune City (Br. Code- 1129) to capture the available opportunities inHousing and Mortgage based loans. Major vision is establishing this specialized branch wasto adopt a focus approach on pilot basis without disturbing the existing structure.
As evident Bank has witnessed a positive outcome with such exclusiveand at par with industrial standard outlet. Now bank is with the opinion to explore andextend this opportunity to other major metro centers like Mumbai Bengaluru ChennaiDelhi Hyderabad and Noida.
5.4 Door Step Banking Services
Bank is providing Door Step Banking Services for its retail customersin 100 identified cities through its 555 branches. The services include financialtransaction like cash withdrawal. Non- financial transactions like delivery of accountstatement and TDS certificate/ Form 16 as well as pickup service of cheque/DD 15G/15Hform standing instructions life certificate nomination etc. are also made available.Looking at covid-19 pandemic the basic financial and non - financial services at doorstephas been widely appreciated by the customers.
5.5 Alternate Delivery Channels
5.5.1 Internet Banking
1. There was an increase of 26.05% in Internet Banking user over theprevious year. As of 31.03.2022 total 19.31 lakh customers were enrolled for InternetBanking facility.
2. In the internet Banking additional 19 functionalities are added formore customer ease and convenience.
5.5.2 Mobile Banking
1. Banking users increased by 38.18% during FY 2021-22. Total enrolledusers were 18.86 lakhs as on 31.03.2022.
2. Maha Mobile functionality has been customized and simplified withaddition of 4 services and 30 functionalities for increasing enrolments.
5.5.3 QR Code issuance
1. There was increase of 30.28% in QR code issuance over the previousyear. As of 31.03.2022 total 4.33 lakh QR codes issued to customers.
2. Bank has distributed 55189 QR stand to merchants during FY 2021-22.
6. CORPORATE SOCIAL RESPONSIBILITY
Following the legacy of the age-old convention of contributing tosocio-economic advancement & underprivileged weaker areas and rural citizens Bankundertook various activities aligned with Govt. thrust areas:
Empowering MSMEs: Bank organized and participated in various eventslike MCCI India Financial Gathering 2022 an Online event on "Finance for MSMEs"organized by Mahratta Chamber of Commerce Businesses & Farming (MCCIA) for empoweringthe MSMEs Bank received outstanding Banking Partner award for MSMEs.
Promoting Education & Sports: Bank has supported
Hindu College Delhi for setting up a research cell for Banking andFinance; Srinivas College for organising an International conference on developing trendsin Computer Science; NICMAR College for a conference for organising an Internationalconference on Real estate infrastructure project management & construction. Olympicday online event organised by sports and youth services Govt. of MaharashtraIntercollege competition organised by Modern College Pune Bank organized yoga sessionson International Yoga Day.
Bank has provided Ventilators to Rajagiri Hospital Ernakulam and 125folding canes to Blind Organisation. Masks sanitizers and other hygiene materials weredistributed to needy people
Women Empowerment: Helping Women SHGs by providing platforms likeBhimthadi Jatra (a National level exhibition for women) to showcase their products.
Urban/Rural development: Bank is undertaking various ruraldevelopment activities through the Bank's Rural Development Centre like promoting soiltesting for farmers planting 500 jackfruit seeding to 100 farmers; Bhopal Smart Citydevelopment; Pune Development Summit 2022 through Plannogram; Distribution of food andnecessities to flood- affected people in villages of Raigad & Ratnagiri District.
Rural Development & Women Empowerment:
Bank is undertaking various social activities through Rural DevelopmentCentre (RDCs) and two trusts of Bank i.e. Mahabank Agricultural Research and RuralDevelopment Foundation (MARDEF) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) in theareas of Agriculture Rural development & women empowerment.
a) Trainings through Mahabank Rural Self Employment Training Institutes(MRSETIs)
During FY 2021-22 Bank imparted EDP & skill based trainingto 4044 trainees as against set target of 3797.
A total of 3409 new businesses were started by these trainedentrepreneurs showing settlement ratio of 84.30%; 2114 units are credit linked showing62.01 % achievement under credit linkage.
All RSETIs of our Bank are "AA" Graded for FY 2020-21by NACER.
Mahabank RSETIs started to conduct unique training program apartfrom their regular Training Programs which will include training for jail inmates. Thisprogramme objective is not only to provide inmates with vocational knowledge and skillsbut also to strengthen their will to work sense of self-help and spirit of cooperationThis program will comprise of two parts. In first part MRSETIs will try for reformation ofjail inmates through skill development training and in second part we will work onrehabilitation of Jail Inmates
MRSETIs have organized various programmes underAZADI KA AMRIT MAHOTSAV'' like FIT India Freedom Run EntrepreneurshipMobilization camps Blood donation camps. Pledge for Eye Donation camps etc.
b) Other initiatives SHGs
Bank is undertaking various social activities through RuralDevelopment Centre (RDCs) and two trusts of Bank i.e. Mahabank Agricultural Research andRural Development Foundation (MARDEF) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) inthe areas of Agriculture Rural development & women empowerment.
Bank received National Award for best performance in SHGfinancing under DAY NRLM for FY 2019-20
Bank is also implementing the social security schemes of Govt.like PMJJBY PMSBY APY etc. through Branches BCs and other digital modes.
GMBVM provided skill based training to rural women forself-employment activities like Agarbatti Candles etc. to empower them for starting newbusiness. These women are running their business on individual as well as through SHGs.
7. LEAD BANK SCHEME
7.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of MaharashtraState viz. Aurangabad Jalna Nasik Palghar Pune Satara and Thane. Every year DistrictCredit Plans for the districts are prepared and implemented with the cooperation of otherMember Banks as well as in coordination with District Collectors of respective Districts.
7.2 State Level Bankers' Committee
The Bank is the Convenor of State Level bankers' Committee (SLBC) forthe State of Maharashtra.
SLBC prepares State Annual Credit Plan in consultation with LeadDistrict Managers Member Banks NABARD Reserve Bank of India etc. The Priority Sectorplan for the year 202122 was of Rs. 461080 crore which was one of the highest creditplan in the country. The same was approved in a special meeting held under theChairmanship of Hon'ble Chief Minister of Maharashtra.
SLBC also ensures holding of quarterly meetings regularly to review theimplementation of State Annual Credit Plans Priority Sector lending and Govt. sponsoredschemes in the State. Apart from regular SLBC meetings Sub-Committee meetings as perguidelines as well as various other meetings are also organized by SLBC to coordinatebetween various Member Banks State Government Government Agencies Reserve Bank ofIndia NABARD and the Central Government. SLBC Maharashtra is having a network of morethan 16500 bank branches in the state.
SLBC has always been very proactive in the event of natural calamitiesif any by issuing necessary guidelines in respect of relief measures particularly forthe year dissemination of COVID-19 related advisories organizing special meetings throughvirtual mode and guiding the members whenever necessary.
In case of specific events like announcement of Debt Waiver SchemeRelief Package for helping poorer sections of the society in the event of outbreak of apandemic SLBC coordinates between Member Banks and State / Central Governments forsuccessful implementation of various measures / schemes.
As a SLBC convener Bank of Maharashtra coordinated for implementationof Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. As of 31.03.2022total of 314 lakh PMJDY accounts have been opened in the State. The process of opening ofPMJDY accounts is continued. SLBC also coordinates implementation of other Social SecuritySchemes of the Central Government in the State.
7.3. FINANCIAL INCLUSION / PMJDY: (FI)
| ||Particulars ||2020-21 ||2021-22 |
|FI Plan ||No of Transactions by BCA (in lakhs) ||186.01 ||196.82 |
| ||Amt of transactions (in Cr) ||12896.05 ||14624.74 |
|PMJDY ||No. of PMJDY accounts (in lakhs) ||68.15 ||71.64 |
| ||Of Which Aadhaar Seeded (in lakhs) ||62.80 ||66.55 |
| ||% OF Aadhaar Seeding (in lakhs) ||92.10% ||92.90% |
| ||Of Which Mobile Seeding (in lakhs) ||56.47 ||59.56 |
| ||% of Mobile Seeding (in lakhs) ||82.86% ||83.14% |
| ||Of Which Ru-Pay Card issued (in lakhs) ||26.71 ||33.56 |
| ||% of Ru-Pay Card issued (in lakhs) ||39.20% ||46.85% |
| ||Balance in PMJDY A/c (in Cr) ||2545.14 ||2617.43 |
| ||Average Bal. per account (actual) ||3735 ||3654 |
| ||PMJDY - OD Count (in lakhs) ||2.66 ||1.83 |
| ||PMJDY - OD Amount (in lakhs) ||3202.08 ||2023.48 |
| ||Zero Bal. PMJDY A/cs (in lakhs) ||11.47 ||13.51 |
|Social Security Schemes ||Enrolment under PMJJBY (in lakh) ||16.41 ||19.10 |
| ||Enrolment under PMSBY (in lakh) ||31.12 ||37.90 |
| ||Enrolment under APY (in lakh) ||2.83 ||4.14 |
|BSBD Accounts ||Total BSBD Accounts (in lakhs) ||93.53 ||93.34 |
| ||O/S Balance in BSBD A/c (in Cr) ||3223.00 ||3272.24 |
| ||Average bal. per account (actual) ||3445 ||3506 |
| ||Commission Paid towards BC Services (in Crore) ||34.23 ||38.64 |
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS:
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by theBank having its Head Office at Aurangabad Maharashtra State. Total no. of branches as on31/03/2022 stood at 415 in its area of operation covering 17 out of 36 districts ofMaharashtra state. These branches are controlled through the 7 Regional Offices.
All 415 branches and controlling offices are now under CBS Performancehighlights of Maharashtra Gramin Bank for the FY 2021-22 are as under:
Bank has achieved total deposit level to Rs 14677.75 Crore andthe CASA is 51.54 %.
Bank has achieved total Business of Rs 22706.71 Crore
Bank has achieved operating profit of Rs 116.83 Crore Bank hasachieved most of the targets under MoU DAP given by sponsor Bank for the financial year2021-22 in major key performance areas as under.
|Sr. Performance No. Parameter ||Actual as on 31/03/2021 ||MoU Target ||Actual as on 31/03/2022 ||% Achie vement ||Y-o-Y Growth(%) |
|1. Total Deposits ||13540.64 ||16000 ||14677.75 ||91.74 ||8.40 |
|2. CASA deposits ||7736.11 ||9200 ||7565.05 ||82.23 ||(2.21) |
|3. % of CASA Deposits ||57.13% ||57.5 ||51.54% ||89.63 ||(9.78) |
|4. Total Advances ||7142.06 ||8800 ||8028.96 ||91.24 ||12.42 |
|5. Total Business ||20682.7 ||24800 ||22706.71 ||91.56 ||9.79 |
|6. Interest Income ||979.49 ||1090 ||803.96 ||73.76 ||(17.92) |
|7. Non-Interest Income ||167.82 ||150 ||171.84 ||114.56 ||2.40 |
|8. Operating Profit ||261.7 ||321 ||116.83 ||36.40 ||(55.36) |
|9. Recovery in Write Off ||11.52 ||11 ||8.94 ||81.27 ||(22.40) |
Bank has deployed in all 1275 Business correspondents in rural areasto provide door step service to the customers. Bank has opened 26.51 Lakh PMJDYaccounts till 31/03/2022 and 12.25 Lakh debit cards are issued to the PMJDY accountholders.
Bank is actively participating in PMJJBY PMSBY and APY as well as thePMMY scheme declared by the GoI DFS. During FY 2021-22 3.40 Lakh customers are coveredunder PMJJBY scheme and 11.33 Lakh customers are covered under PMSBY scheme. 1.61 Lakhcustomers are covered under Atal Pension Yojana (APY).
PFRDA has appreciated the work done by the bank in the APY and the Bankhas received 10 awards in the different parameters during FY 2021-22.
8.2 Performance of METCO
The Maharashtra Executor & Trustee Company Pvt. Ltd . the 100%subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide servicesauxiliary to banking such as:
Consultation Drafting & Execution of will
Consultation Drafting and Management of private Trusts / PublicTrusts
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 MumbaiThane and Nagpur. It is managing about 1117 Public & Private Trusts. During FY2021-22 additional 76 wills were added making total 1311 will in its custody forexecution. At Present the company manages properties both movable and immovable of 21Clients under 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 instruction regarding safety during COVID-19 ISSUED BY Government of India/ Ministry of corporate affairs. The Company has alsodonated through its trusts Rs.184 lacs to 767 beneficiaries.
The net profit of METCO for FY 2021-22 stood at Rs. 54.58 lakh afterIncome Tax Provisions.
9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
During FY 2021-22 the Bank has achieved various remarkableachievements in the field of Official Language implementation:
i. Bank was awarded "Rajbhasha Kirti Puraskar" for betterimplementation of Rajbhasha Hindi which is the highest award for Rajbhasha. Shri A. S.Rajeev Managing Director & CEO Bank of Maharashtra received this prestigious awardat the hands of Hon'ble Minister of State for Home Affairs Shri Nisith Pramanik in agrand function arranged at Vigyan Bhawan New Delhi on 14th September 2021.
ii. Bank was awarded "Skoch Gold Award" for BetterImplementation of Rajbhasha and became the first bank to receive this award forimplementation of official language. Shri Radhey Shyam Bansal General Manager HRM &Rajbhasha has received this award in a virtual function.
iii. Bank was awarded "Vishesh Puraskar" by the Mumbai basedprestigious institution Aashirwad' for better use of Hindi during the year.
iv. Our Kolkata Zonal Office received second prize for Eastern Regionin Regional Rajbhasha Puraskar from Department of Official Language Ministry of HomeAffairs.
v. Town Official Language Implementation Committee (TOLIC) Mumbai hassecured special prize for better use of Hindi by Govt. of India Department of OfficialLanguage Ministry of Home Affairs. Our Bank is the convener for this Committee.
vi. Various Town Official Language Implementation Committees (TOLIC)convened by other Banks awarded our Kolkata Hyderabad Noida & Amravati Zonal Officesfor excellent implementation of Official Language.
vii. Monthly Rajbhasha e-Magazine Rajbhasha E-Pragati' andQuarterly House magazine Mahabank Pragati' are being regularly published. As a newinitiative Rajbhasha E-Pragati in Brail script is also published for the benefit ofvisually challenged employees of the Bank.
viii. Bank is the convener Bank for Town Official LanguageImplementation Committee (TOLIC) in Mumbai Pune Solapur Latur & Jalgaon. Meetingsof these committees were held regularly during the year and various activities of thecommittees were organized throughout the year as per schedule.
ix. "Hindi Karya Diwas" (Hindi Working Day) is being observedby all the branches & offices of the Bank on the third Saturday of every month. Allthe staff are doing their maximum work in Hindi on this day.
x. Hindi version of Bank's mobile banking platform Maha- Mobile hasbeen made available. Information on Bank's website are also provided in Hindi.
xi. The facility of "Online Rajbhasha Kosh" &"Online Hindi Roster" is made available on bank's Intranet for the use ofemployees.
xii. "WhatsApp Banking Various Language Facility" waslaunched by Shri A. S. Rajeev MD & CEO during the Annual Rajbhasha Conference.Customers can now avail WhatsApp Banking facility in Hindi and English as well as MarathiTamil Malayalam etc.
xiii. Hindi day function was arranged at Head Office Pune on 27thSeptember 2021. Shri A. S. Rajeev Managing Director & CEO of the Bank presided overthe function. Shri Hemant Tamta Executive Director Shri A. B. Vijayakumar ExecutiveDirector and General Managers were also present in the function. Winners of the All IndiaRajbhasha Trophy Scheme of the Bank were awarded during the function. All the ZonalManagers and Official Language Officers from the Zonal Offices across the country joinedthis program through video conferencing.
The Bank has put in place a comprehensive Security Policy covering theentire Security arrangements in the Bank. The policy covers the following:-
Protect the bank's assets such as Cash Gold Documents andValuables at branches Administrative offices Currency chests Data Centre othercritical centres and Security measures for Cash and Valuables.
Create a secure safe and conducive environment for Staffvisitors and customers to conduct smooth and normal banking business.
Measures to counter manmade disasters and natural calamities.
During FY 2021-22 proactive steps were taken on the physical securityrequirements in the Bank after analysis of the threat perception current crime scenariocrime pattern modus operandi of bank robberies breaches of security and fire incidentsbesides equipping and training the security personnel and other bank staff to counter anyeventuality.
11. PERFORMANCE EVALUATION OF THE DIRECTORS AND THE BOARD:
In terms of Regulation 25 of SEBI LODR 2015 the performance of theBoard as a whole and non-independent directors including Whole Time Directors wereevaluated by the Independent Directors of Bank in a separate Meeting held on 30th March2022.
Further the performance evaluation of Whole Time Directors is carriedout by Committee of Board for Performance Evaluation on the basis of guidelines prescribedby Government of India. Further Performance of non-official Directors/ ShareholderDirector is done by Board of Directors of Bank on annual basis.
12. DECLARATION BY INDEPENDENT DIRECTORS DURING THE YEAR:
All the Independent Directors of Bank have submitted the declarationconfirming that they meet the criteria of independence as required under Regulation 25 ofSEBI (LODR) Regulations 2015.
13. BOARD AND ITS SUB-COMMITTEES:
The composition of the Board and its Sub-committees as required to beconstituted as per the SEBI (LODR) Regulations Government of India / Reserve Bank IndiaGuidelines and the meetings held therein are mentioned in the Corporate Governance Report.
14. SECRETARIAL AUDIT:
Pursuant to Regulation 24A of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February08 2019 Bank had appointed M/s.Joshi & Joshi Practicing Company Secretaries Puneas a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year2021-22. The Secretarial Audit Report is annexed to this Report.
The Secretarial Auditor has observed that provisions of Regulation17(1) of SEBI (LODR) Regulations 2015 with regard to Composition of the Board ofDirectors (including one Independent Woman Director) have not been complied with duringthe financial year. In regard to above it was explained that Bank of Maharashtra being aGovernment of India Undertaking the power to appoint Directors vests with the Governmentof India except the appointment of Shareholder Director and the Bank has taken up with theGovernment of India for appointment of requisite number of Directors (including oneIndependent Woman Director) against the existing vacancies of Directors on Board of Bank.
Further composition of Audit Committee and Nomination &
Remuneration Committee have been complied with SEBI
(LODR) Regulations 2015 w.e.f 20th January 2022.
15 DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accountsfor the Financial Year ended March 312022:
a) The applicable accounting standards had been followed along withproper explanation relating to material departures if any;
b) The accounting policies framed in accordance with the guidelines ofRBI were followed and the directors had selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Bank at the end of the financialyear and of the profit and loss of the Bank for that period;
c) The directors had taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of applicablelaws to the Bank for safeguarding the assets of the Bank and for preventing and detectingfraud and other irregularities;
d) The directors had prepared the annual accounts on a going concernbasis
e) The directors had ensured that internal financial controls followedby the Bank are in accordance with guidelines issued by RBI in this regard and that suchinternal financial controls are adequate and were operating effectively.
f) The directors had devised proper systems to ensure compliance withthe provisions of all applicable laws and that such systems were adequate and operatingeffectively.
16 CHANGES IN THE BOARD OF DIRECTORS:
During FY 2021-22 the following changes took place in the
Board of Directors:
Shri Hrisheekesh Modak was appointed as Government of IndiaNominee Director of Bank by the Central Government w.e.f. 13.05.2021 in place of Mrs.Vandita Kaul who ceased to be GOI Nominee Director of Bank on 12.05.2021.
Shri Rakesh Kumar was elected as Shareholder Director w.e.f.30.06.2021 for a period of three years consequent to completion of term of Shri R.Thamodharan as Shareholder Director of Bank on 29.06.2021.
Shri Lalit Kumar Chandel was appointed as Government of IndiaNominee Director of Bank by the Central Government w.e.f. 18.08.2021 in place of ShriHrisheekesh Modak who ceased to be GOI Nominee Director of Bank on 17.08.2021.
Shri Shashank Shrivastava was appointed as Part time nonofficial Director of Bank by the Central Government w.e.f. 21.12.2021 for a period ofthree years.
Shri S Baljit Singh was appointed as Part time non officialDirector of Bank by the Central Government w.e.f. 21.12.2021 for a period of three years.
Shri Asheesh Pandey was appointed as an Executive Director ofBank by the Central Government w.e.f.
31.12.2021 for a period of three years in place of Shri Hemant Tamtawho ceased to be Executive Director of Bank on 30.12.2021 on completion of his term.
17 DIVIDEND DISTRIBUTION POLICY:
In terms of Clause 43A of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 Bank has formed a Dividend Distribution Policy and thesame is available on the Bank's website i.e. https://bankofmaharashtra.in
18 BUSINESS RESPONSIBILITY REPORT:
As per the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 Business Responsibility Report (BRR) 2021-22 of the Bank is availableon the Bank's website i.e. https://bankofmaharashtra.in
The Board of Directors place on record their appreciation for thecontribution made by the outgoing Directors.
The Board of Directors wishes to express sincere gratitude to theGovernment of India the Reserve Bank of India the Securities and Exchange Board ofIndia Insurance Regulatory and Development Authority Indian Banks' Association StockExchanges and Depositories for their valuable advice guidance and support; to theCustomers and Stakeholders for their patronage; to the correspondents and associates fortheir co-operation and to all the members of staff of "Mahabank Family" fortheir unstinted commitment and contribution to the overall development of the Bank.
| ||For and on behalf of the Board of Directors |
|Pune ||(A.S. RAJEEV) |
|Date : 25th May 2022 ||Managing Director and CEO |