Your Directors have immense pleasure in presenting the Bank's AnnualReport along with the Audited Statement of Accounts and the Cash Flow statement for theyear ended
31 st March 2019.
FY 2018-19 ended on an encouraging note with a YOY growth of 16%.Global business touched `4.30 lakh crore mark contributed by 16.2% growth in deposits and15.5% in advances. The loan book growth was broad-based which led to appreciable increasein interest income. There were challenges on asset quality front which led to increasedprovisioning requirement and consequent impact on Net Profit. Having taken all necessarysteps to align with regulatory and audit requirements during the past year the path aheadis clear and bright.
As per RBI data as on 29th March 2019 the aggregate deposits andadvances of ASCBs have grown by 13.15% and 17.02% respectively. In comparison Bank'sdeposits and advances had grown at 20.37% and 20.83% respectively. The market share of theBank has went up from 1.75% to 1.88% in deposits and from 1.80% to 1.83% in advances.
Bank was among the top 4 positions in respect of key parameterslike Business (Deposits & Advances growth) Profitability (Interest/Total income ROAand Net Profit to business) Asset Quality (Gross/Net NPA ratios) and Productivity (Costto Income ratio).
The major highlights of your Bank's performance during FY2018-19 are as follows:
Global Business of the Bank reached `429972 Cr duringthe year registering a growth of 15.89%.
Global Deposits reached `242076 Cr with a growth of 16.22%and Global Advances reached `187896 Cr with a growth of 15.47%. OverallCredit-Deposit ratio was at
Priority Sector Advances reached `66847 Cr and as apercentage to Adjusted Net Bank Credit (ANBC) was 41.93% as against the mandatorytarget of 40.00%.
Agriculture Credit (priority sector) was at `31748 Cr andas a percentage to ANBC stood at 19.91% as against the mandatory target of 18.00%.
Domestic Net Interest Margin was at 3.00%.
Total income increased by 7.93% to `21067.71 Crwith Interest income growing by 12.1% to reach `19184.82 Cr and other Income at `1882.89Cr.
Net interest income grew by 12.05% and was at
Operating Profit was `4880.62 Cr and Net Profit was `321.95Cr (`1258.99 Cr for FY 2017-18).
Return on Average Assets was at 0.12% and Return on Networth was at 2.00%.
CapitalAdequacy Ratio (Basel III) was at 13.21% (12.55%for FY 2017-18).
Total recovery of NPAs during FY 2018-19 amounted to `1808 Cras against `910 Cr in the previous year.
Earnings per share were at `6.70 and Book value was at
Total domestic branch network of the Bank in India increased to 2872as on 31.03.2019 from 2820 as on 31.03.2018. Besides the Bank has 3 overseasbranches taking the total branch network to 2875.
Total number ofATMs increased to 2849 as on 31.03.2019from 2846 as on 31.03.2018 which includes 653 offsite ATMs 5 mobileATMs. Apart from the above Bank has 1043 BNAs as on 31.03.2019 which includes 43off site BNAs.
Passbook Kiosks have been installed at 481 locations ason 31.03.2019.
KEY RATIOS FOR THE PERIOD 2018-19
| ||(in %) |
|Parameters ||2018-19 ||2017-18 |
|Yield on Advances ||8.45 ||8.50 |
|Cost of Deposits ||5.28 ||5.30 |
|Return on Assets ||0.12 ||0.53 |
|Cost Income ratio ||45.17 ||42.31 |
|Business per employee (` in lakh) ||2174.26 ||1856.40 |
|Profit per employee (` in lakh) ||1.64 ||6.34 |
|Gross NPA (in %) ||7.11 ||7.37 |
|Net NPA (in %) ||3.75 ||3.81 |
FY 2018-19 witnessed several other positive developments viz.
Successful issue of Basel III compliant Tier II bonds for
Bank designated as an exclusive banker for Direct benefittransfer under major Government schemes both in the State of Tamil Nadu and UT ofPuducherry.
Successfully on boarded on all the three TReDs platforms forMSME bill discounting.
Adjudged 'Top performing Bank' for multiple schemepayments' under PFMS 2 nd highest among PSBs and 5 th among all Banks in ATMtransactions Mobile Banking Transactions recorded 4-fold increase and highest RupayPlatinum card issuer among all banks.
Bank continued to win coveted awards from NABARD PFRDAGovernment of India and Tamilnadu Government for its performance and initiatives inFinancial Literacy SHG Bank Linkage Priority Sector Lending Technology for SocialBankingAPY PMSBY etc.
Formation of Tamil Nadu Grama Bank under Bank'ssponsorship with the successful amalgamation of Pandyan Grama Bank an RRBsponsored by IOB with our own Pallavan Grama Bank.
Networth of the Bank stood at `15784.53 Cr (`15826.98Cr as on 31.03.2018)
| || ||(in %) |
| ||As on |
|BASEL III || || |
| ||March 2019 ||March 2018 |
|CET- I ||10.96 # ||11.00 |
|Tier- I Capital ||11.29 ||11.33 |
|Tier-II Capital ||1.92 ||1.22 |
|Total ||13.21 * ||12.55 |
(As against the requirement of # 7.375% and *10.875% respectively)
As per Government guidelines pre-recruitment and pre-promotiontrainings were offered to SC/ST employees during the process of direct recruitment andinternal promotions.
CHANGES IN THE BOARD DURING THE YEAR:
All the Directors have been appointed/nominated by the Govt. of India(GOI) except Shareholder Directors.
Smt. Padmaja Chunduru assumed charge as MD&CEO ofthe Bank on 21.09.2018.
Shri Kishor Kharat was MD &CEO of the Bankupto 13.08.2018.
Shri A S Rajeev was Executive Director of the Bankupto 30.11.2018.
Shri. V V Shenoy assumed charge as Executive Director on01.12.2018.
Ms Mudita Mishra was Government Nominee Director ofthe Bank upto 04.04.2018.
Mr Amit Agrawal was nominated as the Govt. of IndiaNominee Director from 05.04.2018.
Shri T C Venkat Subramanian was Part-Time Non-OfficialDirector as well as Non-Executive Chairman of the Bank upto 13.08.2018.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accountsfor the year ended March 31 2019:
The applicable accounting standards have been followed alongwith proper explanation relating to material departures if any;
The accounting policies framed in accordance with the guidelinesof the Reserve Bank of India were consistently applied;
Reasonable and prudent judgment and estimates were made 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 of the Bank for the year ended March 31 2019.
Proper and sufficient care were taken for the maintenance ofadequate accounting records in accordance with the provisions of applicable laws governingbanks in India; and
The accounts have been prepared on a going concern basis.
The Board expresses its deep sense of gratitude to the Government ofIndia Reserve Bank of India and Securities & Exchange Board of India for the valuableguidance and support received from them. The Board also thanks the financial institutionsand correspondent banks for their cooperation and support. The Board acknowledges theunstinted support of its customers and shareholders.
The Board places on record its appreciation for the valuablecontribution made by Shri. T.C.Venkat Subramanian Shri. A.S.Rajeev Ms. Mudita Mishrawho ceased to be members during the year.
The Board also places on record its appreciation for the valuablecontribution made by Shri. Kishor Kharat MD & CEO who demitted office on 13.08.2018.
The Board places on record its appreciation for the dedicated servicesand contribution made by members of staff for the overall performance of the Bank.
For and on behalf of Board of Directors
MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER