Your Directors are pleased to present the Twenty Fifth Annual Report of DCB Bank Ltd(hereinafter referred to as the Bank/Your Bank/DCB Bank) together with the auditedaccounts for the year ended March 31 2020 (FY 2020).
In FY 2020 the Bank has posted an Operating Profit of Rs 753.06 crore (FY 2019 Rs646.60 crore) and a Net Profit of Rs 337.94 crore (FY 2019 Rs 325.37 crore).
Total Assets have increased by Rs 2713.31 crore and reached Rs 38505.14 crore as onMarch 31 2020 (` 35791.83 crore as on March 31 2019).
Customer Deposits have increased by Rs 2241.09 crore and Advances have increased by Rs1777.29 crore. Your Bank has been contributing significantly to Priority Sector Lending(PSL) and has achieved the overall PSL target as required by the Reserve Bank of India(RBI).
The Net Interest Margin (NIM) was 3.67% in FY 2020 as compared to 3.83% in FY 2019 andthe Current and Savings Accounts (CASA) ratio stood at 21.5% as on March 31 2020.
Cost to Income Ratio has decreased to 54.5% in FY 2020 from 56.9% in FY 2019. TotalBranch network stood at 336 as on March 31 2020 (333 as on March 31 2019) and ATMnetwork was 504 as on March 31 2020 (504 as on March 31 2019).
Provisions Other Than Tax have increased to Rs 261.14 crore in FY 2020 from Rs 140.06crore in FY 2019. The increase was mainly due to provision of Rs 63 crore towards Covid-19Regulatory Package Provision. The Bank is adopting a conservative approach towardspotential stress on account of Covid-19 and moratorium permitted by the Reserve Bank ofIndia. The Bank also made provision for existing and fresh Non Performing Assets (NPA)slippages and provision against Standard Assets.
Gross NPAs have increased to Rs 631.51 crore as on March 31 2020 from Rs 439.48 croreas on March 31 2019. Consequently Gross NPA Ratio as on March 31 2020 was 2.46% ascompared to 1.84% as on March 31 2019. Net NPAs have increased to Rs 293.51 crore as onMarch 31 2020 as against Rs 153.77 crore as on March 31 2019. Consequently Net NPARatio as on March 31 2020 was 1.16% as compared to 0.65% as on March 31 2019. Theoverall NPA Provision Coverage Ratio as on March 31 2020 was 70.81 % (78.77% as on March31 2019).
Return on Assets (RoA) Ratio in FY 2020 was 0.90% as compared to 0.99% in FY 2019.
Corresponding Return on Equity (RoE) Ratio in FY 2020 was 11.19% as compared to 12.08%in FY 2019.
Capital Adequacy Ratio (CAR) under Basel III as on March 31 2020 stood at 17.75%(16.81% under Basel III as on March 31 2019).
| || || ||(` in crore) |
|Balance Sheet ||As at March 31 2020 ||As at March 31 2019 ||Increase / (Decrease) |
|Customer ||26287.15 ||24046.06 ||2241.09 |
|Deposits || || || |
|Inter Bank ||4082.78 ||4389.05 ||(306.27) |
|Deposits || || || |
|Total Deposits ||30369.93 ||28435.11 ||1934.82 |
|[Including Total CASA*] ||[6519.22] ||[6809.90] ||[290.68] |
|Advances ||25345.29 ||23568.00 ||1777.29 |
|Gross NPA ||631.51 ||439.48 ||192.03 |
|Net NPA ||293.51 ||153.77 ||139.74 |
|Provision for ||174.90 ||97.11 ||77.79 |
|Standard || || || |
|Assets** || || || |
|Total Assets ||38505.14 ||35791.83 ||2713.31 |
|Profit & Loss ||For the year ended March 31 2020 ||For the year ended March 31 2019 ||Increase / (Decrease) |
|Net Interest ||1264.91 ||1149.29 ||115.62 |
|Income || || || |
|Non Interest ||391.10 ||350.16 ||40.94 |
|Income || || || |
|Total Operating ||1656.01 ||1499.45 ||156.56 |
|Income || || || |
|Operating Cost ||902.95 ||852.85 ||50.10 |
|Operating Profit ||753.06 ||646.60 ||106.46 |
|Provisions Other than Tax ||261.14 ||140.06 ||121.08 |
|Net Profit Before ||491.92 ||506.54 ||(14.62) |
|Tax || || || |
|Tax ||153.98 ||181.17 ||(27.19) |
|Net Profit After Tax ||337.94 ||325.37 ||12.57 |
The Reserve Bank of India vide its circular date April 17 2020 has directed thatbanks shall not make any dividend pay-outs from profits pertaining to the financial yearended March 31 2020 until further instructions with a view that banks must conservecapital in an environment of heightened uncertainty caused by Covid-19. Accordingly theBoard of Directors of the Bank has not proposed any dividend for the year ended March 312020.
MANAGEMENT DISCUSSION AND ANALYSIS VISION
The Bank's vision is to be the most innovative and responsive neighbourhood bank inIndia serving entrepreneurs individuals and businesses. In line with our vision we beganimplementing a new strategy in FY 2010 which has been very successful and now completed10 years.
Keeping in view its inherent strengths branch network and expertise the Bank's targetmarket is mainly small business owners / self-employed / small business segment (tradersshopkeepers business owners MSMEs and SMEs). The Bank has chosen to have limitedpresence in the salaried segment. The MSME / SME sector is a vibrant and dynamic sector ofthe Indian economy and plays a very important role in the growth of the Indian economy.This segment is resilient and displays entrepreneurial spirit. Small enterprises createmillions of jobs and maintain social stability. The MSME sector plays a pivotal role inthe economic and social development of the country. In the long run Goods & ServiceTax (GST) and other reforms are expected to be beneficial to the economy.
Some useful information on the MSME sector is given below:
Number of Working Enterprises: 64 million Employment:
111 million individuals
Urban: 49% Rural: 51%
Manufacturing: 31% Trade 36% Other Service: 33%
Sole Proprietor: 96%
(Source: Annual Report FY 2018-19 Government of India Ministry of Micro Small andMedium Enterprise)
DCB BANK CUSTOMERS
Your Bank provides banking services to a varied base of business owners self-employed/ small businesses for example Commodity Trader Gold Trader Vegetable TraderCommission Agent Retailer Restaurant Owner Caterer Baker Vending Machine SupplierConsultant Doctor Contractor Interior Decorator Software Designer Salon BeautyParlour Printer Electrical Engineer Saw Mill Flour Mill Rice Mill Grocery StoreBrick Maker Builder Fabricator Artist Writer Auto Repair Ship Repair PharmacyComputer Specialist Furniture Maker Uniform Maker Garment Shop Fashion TailorHardware Shop Agri Processor Pesticide Dealer Auto Dealer Scrap Dealer StationerySupplier FMCG or Consumer Goods Dealer Tool Maker Agri Input Dealer Tractor DealerPlastic Manufacturer Mattress Manufacturer Water Supplier Computer Training ClassesInternet Caf Coaching Classes Tour Operator Hotel Owner Transporter Ticketing AgentC&F Agent amongst others. The list of Self Employed occupation is endless. The targetmarket is essentially Micro Small and Medium Enterprises both in Manufacturing andServices. (Please refer to MSMED Act 2006). Majority of lending to MSME sector qualifiesfor Priority Sector Lending. A major share of deposits and loans of the Bank are from theself-employed segment.
As of now economic activity has been significantly affected by the unavoidable stepstaken by the government to limit the spread of Covid-19. Lock-down restrictions havedampened demand disrupted labor and supply chain. Lock-down has majorly impacted theself-employed segment. The general view is that the economic activity is likely to resumeand improve step by step in response to easing of lock-down restrictions. We are alllearning to deal with the effects of the pandemic. It is difficult if not impossible toestimate the shape of things to come in near term. Once lock-down restrictions are easedloan demand may pick-up slowly in 3 to 6 months (depending upon type ofbusiness/industry). Smaller locations may recover sooner than metropolitan / large cities.The recovery may not be smooth and there may be further disruptions in the coming months.The Bank intends to re-look at all its credit policies in the light of Covid-19disruptions. In the near term the aim is to preserve capital manage portfolio stressreduce costs and maintain adequate liquidity. We have to continuously watch out for safetyof staff and customers while running banking operations.
During the current year CRISIL Limited reaffirmed the Bank's rating for Tier II Bonds(under Basel III) to CRISIL AA-/Stable and reaffirmed its rating on the Bank'sCertificates of Deposit Programme and Short-term Fixed Deposit Programme at CRISIL A1+.The Bank continues to enjoy ICRA A+ (hyb)/ (stable) rating for Basel III Compliant Tier IIBonds Programme and ICRA A1+ rating for Short Term Fixed Deposits Programme and CARE A1+for Short Term Bank Facilities.
AWARDS AND RECOGNITION
Your Bank continued to be recognized for its progress and initiatives in variousfunctions.
Corporate Social Responsibility (CSR)
Awarded by Bombay Chamber of Commerce and Industry Mumbai for SustainableEnvironmental Initiatives' for CSR projects.
Awarded for Best CSR Project at Asian Customer Engagement & Forum - ACEF HR& CSR Forum & Awards Mumbai.
DCB Bank continues to be Great Place to Work-Certified for building a High-Trustand High-Performance Culture. It has also featured in the top 25 organisations amongIndia's Best Workplaces in BFSI 2020.
Your Bank's efforts in modernising technology and being in the forefront of innovationwas recognised in many forums as below:
"Tech Trendsetter" at India Banking Reforms Conclave & BFSI Awards
"Best Private Bank of the Year" by Indian Banking Summit and Awards2019
"BFSI Digital Innovation Award 2020" in BFSI Technology Conclave byIndian Express
Award for SME Finflex Banking system at Finnoviti 2020
BRANCH EXPANSION / ATMs
The number of branches as on March 31 2020 stands at 336 [188 Retail branches and 148branches in Agri and Inclusive Banking (AIB)]. In line with the stated strategyapproximately 20 percent of the branches are in rural areas and 26 percent in semi-urbanareas. The branch expansion strategy which led to the opening of 150 new branches betweenOctober 2015 and October 2017 is now yielding results with a very high proportion of thebranches breaking even in less than 24 months from the start of their operations. The newbranches have a common look and feel and they are designed to provide a unique positiveand seamless banking experience for the customer. The Bank has 504 ATMs as on March 312020.
Retail Banking offers unique products for meeting financial needs and of individualsand businesses. The Bank follows a multi-product approach which results in "allproducts being offered in all branches" subject to customer demand in the branchcatchment area. In order to remain competitive the Bank is particular about the qualityand timeliness of service delivery. The Bank has a wide range of products that caters tothe various needs of the customers.
DCB Bank is usually amongst the top 5 banks in India in terms of offering attractiveterm deposit interest rates especially for longer tenor retail deposits. DCB Suraksha is aunique deposit that not only offers a higher interest rate than competition but alsoprovides a "no medical required life insurance cover" at "zero cost"to customers (subject to terms and conditions). During FY 2020 the Bank has substantiallychanged the liquidity profile and mix of its deposits. The focus was on obtaining granulardeposits. In comparison to the previous year the Bank saw its Retail Term Deposit grow by51%. Consequently the top 20 deposits ratio which was at 12.01% at the start of the yeardeclined to 9.27% at the end of FY 2020.
Mortgage and Micro Mortgage Loans
Mortgage contributes 42 % of the Bank's loan portfolio and is the leading product forthe past many years. Almost all the branches offer Mortgage loans. These loans areprimarily targeted to self-employed customers in the neighbourhood of our branches. Themain purposes of these loans are home purchase home improvement home repairs businessgrowth and personal expenses such as education or marriage. Micro or small ticketmortgages are particularly sought after in Tier 2 to Tier 6 locations. Many people in therural and semi-urban areas derive cash income from small businesses or trade. At timesthis creates challenges in estimation of income and hence estimation of repaymentcapacity. The Bank has demonstrated the ability to assess the household income for suchcustomers by ensuring in depth personal discussions with the borrowers and co-borrowers.Apart from creating a good quality portfolio the Bank has been able to achieve financialinclusion. Most of these micro loans qualify under the Priority Sector Loan (PSL) norms ofthe RBI. As a part of the Government of India's Pradhan Mantri Awas Yojana Scheme duringthis year the Bank has processed the subsidy applications for many home loan borrowers andsubsidy has been credited to 1449 customers.
Construction Finance (CF)
The construction sector is an important contributor to the growth of our economy.Affordable housing is a key thrust area of the Government in both rural and urban areas.The implementation of Real Estate Regulation & Development Act (RERA) 2016 in moststates has brought in much more transparency into this sector thus creating conditionsfavourable for banks and home buyers. The Bank's approach is to focus on reputed builderswith a strong track record who are primarily concentrating on affordable housing segment.The Bank takes on limited exposure per customer / project and has created credit processesto monitor utilisation and completion.
Commercial Vehicle (CV) Loans
Commercial Vehicle Loans (CV) significantly improves the PSL composition in the Bank.Almost 95% of the CV portfolio is categorised as PSL. This facility is offered across 110locations. The CV industry is facing headwinds on account of weak economic conditions. Inthe near term the CV book is expected to be have some stress. The Bank has allocatedadequate Collections and Recovery staff to manage the CV portfolio. The Bank believes thatthe CV business which is integral to the growth of the economy will see revival in thetimes to come.
Loan against Gold
Loan against Gold is offered in most of the branches of the Bank. The Bank has trainedin house valuers which has resulted in improvement in cycle times and service delivery.The Bank has implemented "Gradaitm" a dedicated front end software foronboarding gold loan customers.
Insurance and Mutual Funds Distribution
The Bank has corporate agency tie-ups for distribution of life insurance healthinsurance and general insurance. It also has tie ups for referring and distribution ofmutual funds. This enables the Bank to deepen customer relationships in addition toincreasing fee based income.
Traditional Community Banking
With a vision of strengthening neighbourhood banking the Bank set up a separatevertical in FY 2010 to focus on Traditional Community Banking. The aim was to address thespecific needs of the vintage neighbourhood community customers and to providepersonalized solutions wherever possible. This perhaps is the purest form of neighbourhoodbanking and is directed towards addressing small credit needs of education personalbusiness and working capital.
Non-Resident Indian (NRI) business
The Bank has NRI customers from over 134 countries which contribute to 10% of theBank's total customer deposits. During the year the Bank successfully and smoothlyacquired deposit portfolio of two branches of the India business of Abu Dhabi CommercialBank (ADCB). The deposits of ADCB were largely high quality NRI deposits.
The number of ATMs as on March 31 2020 was at 504. The Bank has taken steps tostrengthen the security features and comply with RBI guidelines on EMV. During the yearthe Bank modernized more than 30% of the equipment by replacing old ATMs with newmachines.
In FY 2020 the Bank introduced the following in DCB Cards: -
Dynamic additional (second factor) authentication
International transaction block/ unblock feature
Online transaction block/unblock feature
Card usage limits in terms of velocity and volume
DCB Debit Cards
The Bank offers Cashback benefits for using its Debit Cards subject to maintainingprescribed average balances in CASA. At the end of FY 2020 the Bank had 582366 DebitCards. The overall focus on "Digital India" is helping to increase digitaltransactions rapidly. DCB Debit Cards from time to time also offer additionalpromotional discounts on specific categories of spends.
DCB NiYO Global Cards
DCB Niyo Global Card is a Debit Card powered by Visa and is issued on DCB Niyo CurrentAccount. This card enables the cardholders to access their funds anywhere and anytime. Thecardholder is not required to worry about running out of funds or even calculating foreignexchange mark-ups. DCB Niyo Global Card is a "must" for every traveler. The Bankhad approximately 170000 cards at the end March 31 2020.
DCB Payless Cards
This is a unique product offered by the Bank and is a preferred card for self-employedor salaried who are unable to provide complete documented proof of their income whichprecludes them from obtaining credit cards from other banks. In FY 2020 the Bankwitnessed a major increase in usage of DCB Payless Cards in Point of Sale (POS) ande-Commerce. The Bank has created a facility for paperless issuance of DCB Payless Cardsfor its existing fixed deposit customers.
DCB Bank Prepaid Cards
DCB Bank has full suite of payment products on its prepaid platform. The versatilecapability can cater to different needs of product providers. The card is targeted atunbanked population. It helps convert small ticket cash purchases to digital mode. As anexample at the end of FY 2020 DCB Niyo Blue Card (offered to blue collared workers)stood at approximately 550000 cards.
COLLECTIONS AND RECOVERIES
Collections and Recoveries is a critical function and overtime this function hasdeveloped robust capabilities to collect overdue payments and ensure portfolio qualityacross products. The senior officers in the collections unit are experienced to understandthe issues faced by customers and strive to find acceptable ways to rehabilitate thecustomers in case of stress. The team operates out of 245 locations in India. The use ofdata analytics to improve predictability has been critical in improving the productivityof this unit. The M-Collect mobile app for providing system generated receipts on thefield is working efficiently and provides real time updates to the loan system.
One of the key strategies of the Bank is to look for alliances with entities that mayhave similar business objectives. The idea is to enhance product benefits in order tofacilitate new customer acquisitions and customer retention. Over time we expect strongercustomer loyalty and increased fee income.
The various strategic alliances and business association of your Bank is given below: -
|Name of the Partner ||Type of arrangement |
|Aditya Birla Health Insurance Company Ltd ||Corporate Agency |
|Aditya Birla Sun Life Insurance Company Ltd ||Corporate Agency |
|HDFC Standard Life Insurance Company Ltd ||Corporate Agency |
|ICICI Lombard GIC Ltd ||Corporate Agency |
|Royal Sundaram GIC Ltd ||Corporate Agency |
|Name of the Partner ||Type of arrangement |
|Avenues Payments India ||Remittance Platform Solution |
|(P) Ltd || |
|Name of the Partner ||Type of arrangement |
|Atos Worldline India (P) Ltd ||Merchant Acquiring |
|Skilworth Technologies Pvt Ltd. (Bijlipay) ||Merchant Acquiring |
|CMS Info System Limited ||ATM deployment and Cash management |
|Euronet Services India ||ATM and Switch |
|Limited ||Management |
|M2P Solutions Pvt Ltd. ||Program Partner |
|Name of the Partner ||Type of arrangement |
|Aditya Birla Finance Ltd. ||Lending Business |
|Name of the Partner ||Type of arrangement |
|Finnew Solutions Private Limited (NiYo) ||Global NiyO Card Management |
|Xomic Infotech Private Limited ||Government E Marketplace Payment Management System |
MSME and SME
The MSME and SME is a large and ubiquitous segment. This segment is the core targetmarket for your Bank. It is a bedrock and lifeline of the economy. Unfortunately due tolock-down restrictions on account of Covid-19 pandemic this segment is most affected. TheBank through its frontline officers has been reaching out to its customers during thelock-down. It appears that a majority of customers will be able to revive their businesswithin a few months of easing of lock-down restrictions. The Bank has also been providinginformation on moratorium and urging customers to continue to meet their loan obligationsin case their cash flows are not affected. In the coming months the Bank intends tocontinue to work closely with its customers across all products. The Bank is likely toparticipate in the special loan guarantee scheme recently announced by the Government.
CORPORATE BANKING (CB)
The Bank's intention is to have a limited presence exposure in Corporate Banking. Thisbusiness operates across India with regional offices in Ahmedabad Bengaluru ChennaiDelhi Hyderabad Kolkata and Mumbai. The business objective is toprovideacompleterangeofcommercialbankingsolutionsincluding Foreign Exchange Trade Financeand Cash Management. The Bank has a robust underwriting and credit system to address theinherent risks in Corporate Banking. The emphasis is on building a secured loans portfolioand creating long term relationships with high quality large and mid-corporates. During FY2020 the Bank acquired a select good quality Corporate Loan portfolio of two branches ofADCB in India. In order to ensure quality the focus is to continuously improveunderstanding of the borrower's business/prospects ensuring right mix of productsenhance analytics strong promoter connect cash flow understanding and tracking.Corporate Banking portfolio quality remained stable during the year. In FY 2020 the Bankadded 37 new relationships in Corporate Banking. Your Bank understands that theRelationship Managers (RMs) must have in-depth knowledge of various industries andcorporates. In order to meet this need the Bank has introduced RM Knowledge ImprovementPrograms wherein information on various industries corporates and credit ratings areshared with the RMs on a regular basis.
AGRI AND INCLUSIVE BANKING (AIB)
AIB is a separate unit designed to enhance the Bank's Rural and Semi-Urban footprintwith the main aim of achieving Financial Inclusion and PSL. At the end of March 2020 AIBhad 148 branches in 11 states. Rural and Semi-Urban India offers numerous businessopportunities for simple innovative technology backed products. Many of the new branchesare located in Tier 2 to Tier 6 locations. There is a constant endeavour to cater tounderbanked and unbanked population of the country through a wide range of products forexample zero balance savings account small recurring deposit account small loans tomatch the income and cash flow cycle. AIB also coordinates the entire PSL efforts for theBank and is primarily responsible for achieving the financial inclusion targets.
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
In FY 2020 your Bank actively participated in PMJDY. The Bank had 32281 PMJDYaccounts as on March 31 2020. The Bank has enabled Rupay Debit Cards for PMJDY accountholders.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) Atal Pension Yojana (APY)
The Bank successfully reached out to unbanked and economically weaker populationthrough PMSBY PMJJBY and APY programs that are designed to bring social security. As onMarch 31 2020 the Bank had 6483 customers under PMSBY; 3330 customers under PMJJBY and2397 customers in APY.
Basic Savings Bank Deposit Account (BSBDA)
BSBDA has replaced "No frills account". This is a wonderful product forachieving financial inclusion especially for those who have limited transaction needs inthe low income group. The Bank had 47032 BSBDA accounts as on March 31 2020.
"Kisan Mitra" as the name suggests is a liability product which fulfils therequirement and improves the saving habit in rural areas. It is a product speciallydesigned for farmers. It is a modified Savings Account with "Zero" accountopening balance and no Average Quarterly Balance maintenance charges.
Retail Agriculture Loan and Kisan Credit Card
In order to meet the credit needs of the farmers the Bank has several retail agriproducts namely Kisan Credit Card which provide for short term requirement like purchasingseeds fertilizers pesticides manure irrigation long term loan for animal husbandryand loans for investment purpose like land improvement irrigation and hi-techagriculture.
Tractor Loans is an integral part of the total agricultural equipment sector and is anindirect indicator of growth in the agricultural sector. The Bank has steadily built itsbusiness across Tier 2 to Tier 6 locations and part of the Agri and Small and MarginalFarmers loan targets set by RBI are met by tractor loans. In FY 2020 the Bank has startedloans for used tractors which is likely to benefit small and marginal farmers who cannotafford new tractors. Tractor loans are originated using the tab banking facility whichenables doorstep servicing to the customers.
Microfinance Institutions (MFIs) and Business Correspondents (BCs)
The Bank lends directly to MFIs who in turn lend to end borrowers. Over time the Bankhas created a strong network of MFI relationships across India. The Bank is also providingunsecured loans through BCs in select states. Loans are given to members of Self HelpGroups (SHGs) and Joint Liability Groups (JLGs) thereby enabling them to avail small loansfrom the banking sector instead of high cost borrowing from money lenders. These loans areprimarily provided to small farmers and weaker sections mainly in rural areas. In order tosupport the volume growth your Bank has an efficient software system for managing BCLoans. This software helps maintain adequate information about the borrowers under SHGsand JLGs. It provides a common platform for the Bank and BCs for efficient and timelyprocessing of loans.
ALTERNATE CHANNELS AND DIGITAL BANKING
In FY 2020 the Bank's Customer Care Associates attended to almost 100000 calls permonth. The Call Center achieved one of the best "speed to answer" response timeacross the industry. At DCB Bank's 24-Hour Customer Care customers directly get connectedwith the call center agents / associates without having to go through Interactive VoiceResponse (IVR) menu. Considering the Bank has to cater to entire India the Bank hasensured that its customer care associates can interact with the customers in 8 languages(English Hindi Gujarati Kannada Marathi Odiya Tamil and Telugu). The Customer Careunit runs programs such as Voice of the Customer' for effective complaint resolutionand process improvement. One of the key measures initiated is a customer retention callingteam is to encourage customers to restart banking with us and also do a deep dive onissues faced by customers. It is a window provided to the customers to give the Bankvaluable feedback which are then passed on to the various functions and the product teamsfor corrective action and improvements. During FY 2020 the unit migrated to new complaintmanagement tool "Genie" which helps auto populate customer information therebyreducing the time taken to resolve customer issues. In addition this new software has afeature to send "ticket numbers" to customers via SMS which helps customers forfuture reference. The Bank has quickly adopted to new "Work From Home"technologies in view of the Covid-19 situation and now have almost 60% of its call centeragents serving customers from home.
DCB Mobile and Internet Banking
The Bank's customers have been offered a "New Mobile Banking App" withenhanced features and easy navigation. For example now customers can create "FixedDeposits" block or unblock their debit card for POS e-Commerce ATM etc. The newmobile banking app has been welcomed by customers and the rating in the Play Store(Android) has jumped from 2.7 to 4.7 within a short time. In FY 2020 the Bank hasapproximately 85000 customers using the Internet Banking from the comfort of their homeor office. The Bank has launched fast convenient and environment friendly "GreenPIN" concept for Internet Banking passwords. This eliminates the need for delayedpaper based delivery of passwords through the use of postal services.
The Bank has also launched "e-Verify Income Tax Return" via the Bank's onlinebanking facility.
DCB Unified Payment Interface (UPI):
UPI has become one of the most popular digital mode for small transactions.Approximately 120000 account holders used the UPI channel in FY 2020. The UPI mode can beused for IPO applications as well.
DCB Open Banking
Open Banking is an innovative emerging trend in financial technology. It is based onAPIs that enable third party service providers to build applications and services around abank's technology platform. In FY 2020 the Bank integrated its banking services with ZohoBooks. The self-employed can use this powerful software to seamlessly combine their bookkeeping and banking transaction needs. It reduces the need for time consuming bankreconciliation and in general is a very convenient and productive way of running abusiness.
DCB Remit allows a resident individual to send money to over 20 countries includingAustralia Canada Euro Zone Singapore UAE UK and USA from the mobile phone withoutever having the need to visit a branch. What is more for using DCB Remit the user doesnot have to be the Bank's customer. Regardless of whichever bank the customer banks withDCB Remit has the power to remit funds in seven different currencies in a completelypaperless fashion.
Digitally Enabled Government Services
GeM (Government E-Marketplace) is an online platform that facilitates onlineprocurement of commonly used goods and services required by various government departmentsand PSUs. The Bank has tied up with Government e-Marketplace (GeM) through a Memorandum ofUnderstanding as an associate bank to facilitate transactions between buyers and sellerson the GeM portal. This would enable a majority of the Bank's self-employed customers toparticipate in the procurement process of various government departments. Further thecustomer information available on the portal will enable the Bank to extend creditfacilities inter alia Invoice Financing and Short Term Loans.
Cash Management Services (CMS)
The Bank provides Corporates MSME/SME and Retail customers sophisticated and costeffective CMS. This helps customers manage their collection and payment logistics withease. The Bank has 18 vendors for CMS cheque collections across India. The Bank hasupgraded the CMS system for both Payments and Collections making it rich in features. Atthe end of FY 2020 the Bank had 6375 active customers using the CMS facilities.
Business Internet Banking (BIB)
The Bank offers state-of-the-art BIB product especially designed for MSME/SMEcustomers. The adaptive and responsive feature of the application makes it user friendlyfor customers across devices. At the end of FY 2020 BIB facility had 30884 users.
TREASURY MONEY MARKET AND FOREIGN EXCHANGE
Treasury actively manages liquidity compliance with important regulatory tools- CRR& SLR trading in fixed income securities & currencies and investment in InitialPublic Offers (IPOs). It also shares the responsibility of interest rate risk managementof the Bank. In FY 2020 the Bank made gains in a cautious manner by utilizing the tradingopportunities in G-Sec presented by declining interest rates. The Bank selectivelyinvested in Equity IPOs and booked profits by way of listing gains. The Bank also investedin units of Liquid Mutual Funds in order to earn interest income on liquidity mismatches.
India's Gross Domestic Product (GDP) growth rate came below 5.0% indicating some levelof slowdown even prior to Covid-19. The Index of Industrial Production (IIP) remainedmuted indicating slowdown and lack of growth in many sectors. The Consumer Price Index(CPI) inflation moved up sharply from a low of 2.57% in April 2019 to 7.59% in February2020 before coming down to 6.58% in March 2020. In order support growth RBI appears to betaking an accommodative stance and in steps reduced Repo Rate from 6.25% to 4.40%. RBIalso cut CRR by 100 bps from 4% to 3% to provide liquidity. These measures also aimed tobring down yield of Government Securities so as to lower the borrowing cost of theGovernment. Sensex went up till February 2020. However equity market corrected sharply inMarch 2020 taking clue from Global Majors following outbreak of Covid-19. Major globalequity indices fell by more than 30%.
The trade war between USA and China dominated the markets for most part of the yearwith Asian currencies gradually weakening. Euro was haunted by weak Euro zone datafragility in German politics and dovish ECB while GBP movement was ruled mainly by theBrexit issue. Until recently the USA economy continued to do well causing the DollarIndex to increase and the US Stock Indices touching all-time high. Uncertainties in theglobal markets caused gold prices to move up while Crude Oil price surged due to supplycuts by the OPEC and Geo Political tension between USA and Iran. In Q4 FY 2020 the rapidspread of Covid-19 caused major disruptions in the economies of almost every country.Disagreement between Saudi Arabia and Russia on cuts in crude supplies created volatilityand the Brent Crude came down to US dollars 22 / barrel. The US dollar rose against abasket of currencies as concerns about the economic fallout from Covid-19 increaseddemand for US dollars globally despite recent steps taken by world central banks aimed atalleviating market stress. The increase in number of Covid-19 cases caused Indian rupee todepreciate sharply to trade above Rs 75 per USD.
Risk is an integral part of the banking business and the Bank's aim is to maintainportfolio quality by making appropriate risk/reward trade-offs. The Bank is exposed tocredit concentration market country exposure liquidity operational fraud andreputation risk. The Board of Directors of the Bank has oversight of risks assumed by theBank and has delegated its power to manage risks to Risk Management Committee (RMC) of theBoard.
The Credit Risk unit ensures alignment with the objectives of achieving growth whilemaintaining portfolio quality by making appropriate risk / reward trade-offs. The idea isto ensure long-term sustainable performance across business cycles. On-going efforts aremade to improve risk assessment and controls. Credit Risk over time has developedcapabilities to assess the risks associated with various products and business segments.As far as possible efforts are made to standardize the entire process pan India whiletaking into account geographic nuances. The Bank has implemented a rating model that takesinto account both quantitative and qualitative factors and produces a rating that becomesone of the key inputs to credit decisions. In order to continuously improve the quality ofthe portfolio the Credit Risk unit uses SAS analytics and has created several insightfulmodels that helped in refining the product offering choosing the target segment ofcustomers collections and recoveries. Key processes in credit underwriting were examinedand duplication was reduced to improve speed of processing. Periodic portfolio reviewswere conducted with the business units that helped improve portfolio quality.
Concentration risk is monitored and managed both at the customer level and at theaggregate level. The Bank inter alia continuously monitors portfolio concentrations bysegment ratings borrower group sensitive sectors unsecured exposures industry andgeography. The Bank adopts a conservative approach within the regulatory prudentialexposure norms.
Besides the usual monitoring of Structural Liquidity Interest Rate Sensitive Gaplimits and Absolute Holding limits the Bank also monitors interest rate risks using Valueat Risk limits. Exposures to Foreign Exchange and Capital Markets are monitored withinpre-set exposure limits margin requirements and stop-loss limits.
Country Exposure Risk
The Bank has established specific country exposure limits which is capped at 15% of itsCapital Funds. The limit also depends upon rating of individual countries. The Bankmitigates risks using insurance cover available through the Export Credit and GuaranteeCorporation (ECGC) where appropriate.
As part of the liquidity management and contingency planning the Bank assessespotential trends demands events and uncertainties that could result in adverse liquidityconditions. The Bank's Asset Liability Management (ALM) policy defines the gap limits forthe structural liquidity and the liquidity profile is analysed on both static and dynamicbasis by tracking cash inflow and outflow in the maturity ladder based on the expectedoccurrence of cash flow. The Bank undertakes behavioural analysis of the non-maturityproducts namely CASA Cash Credit and Overdraft accounts on a periodic basis to ascertainthe volatility of balances. The renewal pattern and premature withdrawals of Term Depositsand drawdowns of un-availed credit limits are also captured through behavioural studies.The liquidity profile is estimated on an active basis by considering the growth inDeposits Advances and investment obligations. The concentration of large deposits ismonitored on a periodic basis. Emphasis has been placed on growing Retail Deposits andavoid as far as possible Bulk Deposits. The Bank periodically conducts liquidity stresstesting.
Operational Risk is the risk of loss resulting from inadequate or failed internalprocesses people or systems or external events. The Bank's operational risk managementframework is defined in the Operational Risk Management Policy approved by the Board ofDirectors. While the policy provides a broad framework Operational Risk ManagementCommittee (ORCO) oversees the operational risk management in the Bank. The policyspecifies the composition roles and responsibilities of the ORCO. The framework comprisesidentification assessment management and mitigation of risks through advanced tools andanalysis.
Your Bank strives to continuously improve process controls and customer satisfaction.The Bank has a separate cross functional committee Management Committee forApproval of Processes (MCAP). New products and processes are reviewed by MCAP. TheCommittee is tasked with identifying operational and compliance risks in newproducts/processes and ensuring that steps are taken to mitigate the risks. Also MCAP onan on-going basis reviews existing processes for further improvement. In the FY 2020 136products/processes were reviewed by MCAP.
The Bank pays attention to issues that may create reputational risks. Events that cannegatively affect the Bank's reputation are handled cautiously ensuring utmost complianceand in line with the values of the Bank.
IMPLEMENTATION OF BASEL III GUIDELINES
In accordance with the RBI guidelines the Bank has migrated to Basel III capitaladequacy disclosures with effect from Q1 FY 2014. The Bank continues to review and improveon its risk management systems and practices to align them with international bestpractices. The Bank has implemented Standardized Approach for Credit Risk StandardizedDuration Approach for Market Risk and Basic Indicator Approach for Operational Risk.
INFORMATION TECHNOLOGY (IT)
The banking landscape is going through a paradigm shift. Customers are demanding highlevel of digitization intuitive user interfaces and frictionless user journey. Thecurrent lock-down situation has further accelerated the need for digitization. Banks areembracing flexible emerging technologies and evolving business models to servicecustomers' expectations.
Your Bank has taken many initiatives to keep pace with these rapid changes. It hascreated a detailed and dynamic "digitization" plan with adoption of Agiledelivery which is being executed in a systematic manner. The intention is to provide a newuser customer experience and to meet customer demands by taking advantage of the digitalrevolution. In FY 2020 the Bank's IT team and users were very busy launching a number ofcontemporary solutions that has the potential to generate new business strengtheninfrastructure and controls provide superior service and enable scaling up of volumes.
Highlights of IT in FY 2020:-
Mobile Banking launch with superior user experience and extended features forRetail Banking customers
Launched DCB Zippi online fixed deposit (FD) scheme that allows any residentIndian to open an account from the comfort of home
Finacle 10x upgrade initiated
"Connected Banking" to help customers avail services like fundtransfer account statement on partner's platform in a safe and secure manner
NIYO Merchant: DCB UPI facility on NIYO cards implemented
DCB Remit new website with Intuitive User Experience and unique feature of sevencurrencies and remittance to over 20 countries.
DCB Bank Income Tax E-filing service through DCB Bank's Internet Bankingimplemented.
NRI Online AOF Platform (relaunched)
DCB Bank Pool Account on Government e-Marketplace (GeM)
Fraud Risk Management - Prepaid Card alerts and SWIFT Integration implemented
DCB Bank VISA Access Control Server (ACS) secure mechanism for DCB Bank VisaCards launched (enables customers to verify their identity and transact in a securemanner).
RuPay Pay Secure for DCB Bank RuPay card holders (provides customer an enhancedsecurity for online transactions)
Lending Platform "Neo" upgraded to new version (Neo 2.0) with APIenabled and enhanced features
Locker Module for branches
UPI 2.0 launched with One-time mandate functionality Aadhaar Data Vaultimplemented
AML integration with SWIFT implemented
Treasury System automation done. No manual intervention between dealingplatforms (CALL CROMS TREPS) and Credence
SWIFT Version upgraded from 7.2 to 7.4
Identity and Access Management Solution implemented
Workflow Automation in Sapphire (Call Center Staff Payments Asset ManagementInterest rate related complaints)
Legal Module in Collection implemented
Learning Management Platform (LUMOS) launched on iOS
Omni Docs API enabled on "SME Finflex" application
Personal Loan Lead Generation Platform (for managing leads through DigitalMarketing and Social Media campaigns)
Data Exchange Module(DEM) for West and North Grid (Clearing House Interface)
Software Asset Management Solution implemented
SAS Viya Unified Insights Model Manager (MM) platform implemented
Automation of NPA and Collateral Management implemented
Software Defined WAN (SDWAN) solution implemented
Call Center Application and Server Hardware refresh completed
Database Encryption for core banking system implemented
Database Access Monitoring (DAM) implemented eGInnovation monitoring tool forinfrastructure and application performance monitoring implemented
Near DR Infrastructure completed
DMARC (Domain-based Message Authentication Reporting and Conformance)implemented to prevent unauthorized usage of "dcbbank" domain
Successfully hosted "INNOVATION CARNIVAL 2.0" at New Delhi inSeptember 2019 and at Mumbai in February 2020
Aadhaar eKYC middleware system implemented
BUSINESS INTELLIGENCE UNIT (BIU)
The core objective of BIU is to support all businesses and functions to make decisionsusing data analytics. The Bank has a scalable analytical stack in areas of Big DataMachine Learning and Deep Learning which comprise of an Enterprise Data Lake and GPUservers. This has assisted businesses and functions in several "Use Cases" inthe field of Machine Learning & Artificial intelligence (ML/AI) such as buildingpredictive models like default behaviour scorecards using techniques such as time-seriesforecasting & optimisation for cash loading at ATMs text mining and NLP for sentimentanalysis Big data capabilities for analysing behavioural patterns for campaigns productselection ADF submissions etc. amongst other initiatives combining power of Analyticsand Technology. The unit has deployed several new technologies to enhance its capabilitiesto support growing business needs.
The Bank's focus is on creating a "Centre of Excellence" at Operations bydelivering delightful experience to customers. During the year the focus of operationsunits has been to sharpen the execution through various process improvements / automationand enhancing the staff skills and providing a more positive work environment whilekeeping a tight vigil on costs and productivity. The Operations unit is firmly movingtowards modernization and adoption of contemporary solutions while gearing up for scaleand volume.
Highlights of Operations in FY 2020:
Successfully migrated Clearing unit to DEM (Data Exchange Module) of NPCI forNorthern and Western Grids.
Improved efficiency in Currency Management Services Unit (provides cashlogistics for branches and ATMs)
Introduced e-CIT (enhanced risk management and controls). Also regulatoryguidelines with respect to cash vans have been implemented
Stabilized Electronic Banking Operations (EBO) (processing of paymentssettlements and reconciliations). This unit operates 24 X 7 including holidays
Similarly NEFT and RTGS payments have seen steady growth in volumes. Thepayments unit have tirelessly processed thousands of transactions without operationalerrors.
Treasury Back Office providing steady operations through experienced resources
IDAM (Identity and Access Management) policy new system and revamped processimplemented
CMS Operations continues to support branches and customers for bulk payments andcheque collection products.
INTERNAL AUDIT (IA) AND VIGILANCE
IA function of the team comprises of professionals experienced bankers and staff withspecialisation in specific areas of banking. As a bank we have been continuously trying tohave the right mix of people in the function to be an efficient supporter for BusinessUnits. The IA function is monitored and overseen closely by the Audit Committee of theBoard (ACB) which comprises of domain experts and professionals who on a periodic basisreview the performance of IA and provide inputs and guidance in order to improve thefunctioning of IA. Our approach to induct new professionals and groom them along withhiring ex-bankers with rich experience in various areas of Banking for insourcingconcurrent audits and conduct certain specialised audits has been giving satisfactoryresults. IA has an elaborate framework of risk assessment audit planning and executionprocess. The Continuous Monitoring model which was implemented last year has been enhancedin FY 2020 into a full-fledged application. This will enable IA to conduct reviews on acontinuous basis. This has the potential to identify controls gaps and process issues onan ongoing basis. The system of identifying root cause for IA findings has helped inanalysing systemic control issues in the Bank.
In FY 2020 IA conducted 229 branch audits 25 periodic audits 7 compliance audits 19snap audits and 12 IT audits. In order to improve the effectiveness the Bank hasin-sourced most of the Concurrent Audits. IA continues to enhance the technical and softskills of the audit team through various internal and external training programs.
The Vigilance unit has created process and systems to provide regulatory reporting in atimely manner. The unit has initiated Fraud Risk awareness training sessions at variouslocations in the Bank. The Fraud Risk Monitoring unit has implemented an internal fraudalert generation tool to identify suspected transactions. The unit has also reviewedvarious alerts and underlying parameters. Learnings have been incorporated to make thefraud system more robust. On an ongoing basis the Vigilance unit provides inputs andrecommendations to various systems and platforms for strengthening controls for fraudprevention.
COMPLIANCE AND RISK BASED SUPERVISION BY THE RBI
The Bank's Compliance unit is independent of its business and operation functions. TheCompliance function has created detailed procedures to ensure compliance with applicableregulations. In addition to ensuring timely submission of various returns to regulatoryand statutory authorities the Compliance unit also ensures that the Bank's internalprocedures and processes are in adherence with the applicable regulatory and statutoryguidelines. The Compliance unit is also responsible for AML / KYC monitoring and forexecuting the same the Bank relies on advanced software and analytics. The Bank iscovered under the Banking Ombudsman Scheme of the RBI wherein escalated customercomplaints received through the Office of the Banking Ombudsman are addressed under awell-defined Customer Grievance Redressal mechanism. To strengthen the internal grievancesystem an internal Ombudsman has also been appointed in line with RBI guidelines. TheCompliance function also has a separate unit for Compliance Monitoring and Testing on anongoing basis.
HUMAN RESOURCES (HR)
The Bank strives to provide an environment where people can learn grow and progresswhile delivering sustainable results for the Bank. The main focus is to create a uniquecaring culture and nurture talent for future business expansion and growth. Throughsophisticated tools training and interventions continuous efforts are made to improveskill sets team work productivity empathy and adherence to compliance and controls.
Highlights of HR in FY 2020: -Talent Attraction & Engagement
In order to support business growth the HR unit strengthened the recruitmentprocess which helped increase the Bank's headcount to 6845 from 6134 at the end of theprevious year.
Strengthened a unique employee referral scheme "LINK" that contributed37% of total hiring while hiring through internal channels contributed 52%. This in turnhelped reduce costs improve employee attrition and productivity.
Filled up 355 positions using internal talent pool through the program "OwnYour Future"
Scaled up "The Top Recruit" program and campus engagement coveringover 5000 participants from 200 B-Schools in cities like Bengaluru Delhi Kolkata andMaharashtra
Periodically communicated through "High Decibel" (an exciting in-housemagazine) information about official and personal milestones of employees
Conducted across India in every region "DCB Allympics" a mega sportsevent for employees
Facilitated "EORO (Each One Reach One) Supervisor Survey" for"first time" supervisors. Feedback received was shared with People Forum andrespective supervisors. Appropriate counselling also done of supervisors who had gaps inpeople management skills
"DCB Spotlight" (regional recognition forum) held in 12 locations and370 employees felicitated. The Bank clubbed Spotlight with Funkaar Beats a regionaltalent contest for employees to showcase their talent in music and dance and the winnersare then given a chance to perform in the signature mega national event "DCB Movers& Shakers"
"Hour HR" (signature live radio show) enabled employees interactdirectly with the HR team and seniors
Reached over 83000 followers on LinkedIn.
Learning & Development
Continued a strong culture of learning through the Individual Learning &Development Scorecard (ILDS) spanning the entire employee life cycle
Conducted mandatory training programs inter alia Employee Induction Preventionof Sexual Harassment Business Continuity Planning & Disaster Recovery and Awarenesson Information Security. The Bank has an online learning academy "LUMOS" whichfacilitates digital learning. 99% of employees (joined on or before December 31 2019)completed at least one classroom / online program and 92% of employees used at least onedigital module in LUMOS.
Continued Bank's signature programs (used for building leadership pipeline)namely SPRINT Grow with Us-Budding Branch Manager Budding Branch Operations ManagerRISE and ASPIRE
Partnered with Moody's Analytics and other accredited entities to certifyemployees in Audit Credit Compliance Treasury Operations and Finance. More than 600employees trained under such Capacity Development initiatives in the
Strengthened training on Anti Money Laundering and Know Your Customer for newemployees and provided refresher course on Prevention of Money Laundering Act for existingemployees especially frontline
"Mujhe Pata Nahin Tha" series launched using "comic strips"and capsule training on "Ethics" shared with employees emphasizing theimportance of Code of Conduct
Separate trainings conducted to reiterate "Gender Sensitisation".
Improved compliance to process and controls through "Project Prayas"and Project First Time Right" for branch staff
Once again organized a unique "Lead Generation" sales centric trainingprogram that helped generate business leads. This program specifically targets lowperformers in order to improve productivity and reduce employee attrition
Continued programs such as ESQ (service excellence) ABCD (supervisorcapability) and CREW (promotes team work). These programs help strengthen the culture andethos of the Bank.
Conducted a two day "Knowfest" in Hyderabad where all business andfunctions displayed their achievements and capabilities in an exhibition stall format. Thewhole event had a festival look and feel. This was followed by intense
"Master Class" sessions which helped to provide useful knowledge andinformation to the top team members.
Organisation Development & Talent Management
Promoted 57 % of employees who participated in the Bank's unique promotionprocess
Job evaluation / sizing exercise (comparing different jobs based on knowledgeimpact and accountability) completed for more than 900 roles
Conducted annual S-Peak survey (designed to provide feedback on peoplemanagement to supervisors) registering almost 100 % participation. Results of the survey(report card) shared with 814 supervisors and their business heads.
Completed DCB Bank Internal ESQ survey (designed to measure internal customersatisfaction). Almost 100% of employees provided feedback on various units. The overallBank score was 82% an improvement over last year.
Delighting customer in every interaction is the core aim of the Bank. Customercomplaints and satisfaction levels are monitored by the Managing Director and ChiefExecutive Officer along with the Senior Management team on a regular basis. The Bank hasconstituted an independent Service Excellence team to analyse customer complaintsidentify root causes make suggestions for process improvements and works with the variousbusinesses and functions to continuously improve service levels. The Bank has a"Centralised Complaint Management" system and rigorous standards to ensure thatcustomer queries and complaints are not missed out and are resolved in a timely manner.The Bank continues to make steady progress on the concept of Power of Three - EmpathySpeed and Quality (ESQ) initiative launched nine years ago. The Bank continuously works onthe six pillars of Service Excellence Voice of Customer Service RecoveryAttrition Calling Process Simplification Service Culture and Measures and Metrics. TheService Excellence team regularly conducts review of progress on six pillars with keystakeholders weekly calls with frontline staff to obtain feedback surprise visits tovarious units customer meetings focus groups and "mystery shopping" tounderstand frontline service culture and competence. The progress on Service Excellence ismonitored by the Customer Service Committee (CSC) of the Board.
The Bank continuously undertakes numerous measures to create brand awareness andimprove its brand presence and image. The Bank conducted low cost micro marketingactivities throughout the year in the branch neighbourhood. As part of its culture toengage directly with customers and prospects in informal forums the Bank conductedseveral customer meet events golf tournaments health camps movie screenings drawingcompetitions mega musical programs and many such activities. In FY 2020 the Bankexecuted 10000 odd micro marketing activities and events across its branch footprint.
Throughout the year the Bank conducted Above the Line campaigns (Print OutdoorCinema and Digital) to promote Term Deposit products. This resulted in huge visibilityawareness and business volumes. The Bank also organized innovative branding campaigns likeTea Cup Branding Newspaper Stickers and at Airports which also resulted in increase incustomer walk-ins in the branches DCB Remit micro site www.dcbremit.com went live and waspromoted continuously on Social Media and digital channels. This is a unique andconvenient remittance product especially for customers whose children are studyingoverseas.
Throughout the year various theme based creative communication were posted on DCB BankFacebook and Instagram page to engage with the increasing number of followers.
IND AS IMPLEMENTATION
The Ministry of Corporate Affairs (MCA) Government of India has notified the Companies(Indian Accounting Standards) Rules 2015 on February 16 2015. Further a Press Releasewas issued by the MCA on January 18 2016 outlining the roadmap for implementation ofIndian Accounting Standards (IND AS) converged with International Financial ReportingStandards (IFRS) for banks. As per earlier instructions banks in India were required tocomply with the IND AS for financial statements for accounting periods beginning fromApril 1 2018 onwards with comparatives for the periods ending March 31 2018 orthereafter. Progressing towards IND AS the Bank had prepared pro-forma financials as onJune 30 2017 as per extant regulatory guidelines and submitted the same to the RBI. OnApril 05 2018 the RBI had announced deferment of implementation date by one year withIND AS being applicable to banks for accounting periods beginning April 01 2019 onwards.In preparation for the same the Bank has been submitting quarterly pro-forma financialsto the RBI from quarter ended June 30 2018. On March 22 2019 the RBI has announceddeferment of the implementation of IND AS by banks till further notice; however the Bankcontinues to submit to the RBI pro forma financials on a quarterly basis.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS BY THE BANK.
Not applicable being a banking company.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All the transactions with related parties are in the ordinary course of business and onarm's length basis and there are no material' contracts or arrangement ortransactions with related parties and thus disclosure in Form no. AOC-2 is not required.
POLICY ON RELATED PARTY TRANSACTIONS OF THE BANK
The Bank has a policy on Related Party Transactions and the same has been displayed onthe Bank's website:
BUSINESS RESPONSIBILITY REPORT:
In terms of Regulation 34(2)(f) of the SEBI Listing Obligations and DisclosureRequirements (LODR) Regulations 2015 the Bank's Business Responsibility Report describingthe initiatives taken by the Bank from an environmental social and governance perspectiveforms part of this Report and has been hosted on the website of the Bank at the followingLink: