Your Directors have immense pleasure in presenting the Bank's Annual Report along withthe Audited Statement of Accounts and the Cash Flow statement for the year ended 31stMarch 2018.
The major highlights of your Bank's performance during FY 2017-18 are as follows:
Global Business of the Bank reached Rs. 371020 crore during the yearregistering a growth of 17.91%.
Total Deposits grew by Rs. 25785 crore (14.13%) for the financial year 2017-18to Rs. 208294 crore.
Gross Advances stood at Rs. 162726 crore as on 31.03.2018. OverallCredit-Deposit ratio was at 78.12%.
Priority Sector Advances was at Rs. 63036 crore as on 31.03.2018. Prioritysector as a percentage to quarterly average Adjusted Net Bank Credit (ANBC) for 2017-18stood at 47.08% as against the mandatory target of 40.00%.
Agriculture Credit (priority sector) was at Rs. 27383 crore and the percentageto quarterly average ANBC stood at 20.91% as against the mandatory target of 18.00%.
Net Interest Margin was at 2.90% for FY 2017-18.
Operating Profit increased to Rs. 5000.99 crore as against Rs. 4000.71 crore forFY 2016-17.
Net Profit for FY 2017-18 was at Rs. 1258.99 crore as compared to Rs. 1405.68crore for 2016-17.
Return onAverageAssets was at 0.53% for FY 2017-18 as against 0.67% for FY2016-17.
Capital Adequacy Ratio (Basel III) was at 12.55% as at March 31 2018 ascompared to 13.64% as at March 31 2017.
Return on Net worth for FY 2017-18 was at 8.27% as compared to 9.97% in FY2016-17.
Gross NPA was at 7.37% as on March 31 2018 as against 7.47% as on March 312017 while Net NPA was at 3.81% as on March 31 2018 as against 4.39% as on March 312017.
Total recovery of NPAs during FY 2017-18 amounted to Rs. 910 crore as againstRs. 846 crore in the previous year.
Earnings per share was at Rs. 26.21 and Book value was at Rs. 329.53 as on31.03.2018.
Total domestic branch network of the Bank in India increased to 2820 as on31.03.2018 from 2679 as on 31.03.2017. Besides the Bank has 3 overseas branches takingthe total branch network to 2823.
Total number of ATMs increased to 2846 as on 31.03.2018 from 2816 as on31.03.2017 which includes 620 offsite ATMs 6 mobile ATMs. Apart from the above Bank has553 BNAs as on 31.03.2018 which includes 25 off site BNAs.
Passbook Kiosk have been installed at 481 locations as on 31.03.2018 as against256 locations as on 31.03.2017.
In order to improve and enhance the security of ATM transactions carried outthrough the Bank's debit cards Bank has implemented Dynamic Key Exchange (DKE) for NFStransactions. The PIN entered by the customer during an ATM transaction is encrypted toform Pin Block and transmitted over the network issued by NPCI.
During the year 2017-18 total income of the Bank increased by 6.95% to Rs.19519.49 crore with Interest Income at Rs. 17113.65 crore and other Income at Rs.2405.84 crore.
The Bank's total expenditure increased marginally by Rs. 268.09 crore (1.88%) toRs. 14518.50 crore during FY 2017-18.
Total operating expenses was at Rs. 3668.40 crore for FY2017-18 as compared toRs. 3356.73 crore in FY2016-17.
IMPORTANT RATIOS FOR THE PERIOD OF 2017-18 ARE AS UNDER:
| || ||(in %) |
|Parameters ||2017-18 ||2016-17 |
|Yield on Advances ||8.50 ||9.17 |
|Cost of Deposits ||5.30 ||6.03 |
|Return on Assets ||0.53 ||0.67 |
|Cost Income ratio ||42.31 ||45.62 |
|Business per employee (Rs. in lakh) ||1856.40 ||1487.73 |
|Profit per employee (Rs. in lakh) ||6.34 ||6.72 |
The Board of Directors have recommended a dividend of 60% for FY 2017-18.The dividend shall be subject to tax on dividend to be paid by the Bank. The total outflowon account of dividend for FY 2017-18 is Rs. 288.17 crore excluding dividend tax. Thepayout ratio works out to 22.89%.
NETWORTH AND CRAR
Networth of the Bank improved to Rs. 15826.98 crore as on 31.03.2018 fromRs. 14461.59 crore as on 31.03.2017 registering a growth of 9.44%.
As per Basel III norms the Capital to Risk weightedAssets Ratio (CRAR) was at12.55% as on 31st March 2018 compared to 13.64% as of 31st March 2017 and as against therequirement of 10.875%. The CET- I ratio was 11.00% as of 31st March 2018 as compared to11.82% as of 31st March 2017 and against the minimum requirement of 7.375%. The CRAR ofTier I capital was 11.33% as of 31st March 2018 as against 12.20% as of 31st March 2017.
| || ||(in %) |
| ||As on |
|BASEL III ||March 2018 ||March 2017 |
|CET- I ||11.00 ||11.82 |
|Tier- I Capital ||11.33 ||12.20 |
|Tier-II Capital ||1.22 ||1.44 |
|Total ||12.55 ||13.64 |
As per Government guidelines pre-recruitment and pre-promotion trainings were offeredto SC/ST employees during the process of direct recruitment and internal promotions.
CHANGES IN THE BOARD DURING THE YEAR
Shri. Mahesh Kumar Jain was MD&CEO of the Bank upto 03.04.2017.
Shri. Kishor Kharat assumed charge as MD&CEO of the Bank on 04.04.2017.
Shri. Sriram Ramachandran was shareholder director of the Bank upto 30.06.2017.
Shri. Vinok Kumar Nagar was shareholder director of the bank upto 30.06.2017 andwas re-elected as shareholder director from 01.07.2017.
Dr Bharath Krishna Sankar was elected as shareholder director of the Bank from21.12.2017.
Shri. Salil Kumar Jha was appointed as Non-official Director of the Bank witheffect from 27.12.2017.
The Directors confirm that in the preparation of the annual accounts for the year endedMarch 31 2018:
The applicable accounting standards have been followed along with properexplanation relating to material departures if any;
The accounting policies framed in accordance with the guidelines of the ReserveBank of India were consistently applied;
Reasonable and prudent judgment and estimates were made so as to give a true andfair view of the state of affairs of the Bank at the end of the financial year and of theprofit of the Bank for the year ended March 31 2018.
Proper and sufficient care were taken for the maintenance of adequate accountingrecords in accordance with the provisions of applicable laws governing banks in India; and
The accounts have been prepared on a going concern basis.
The Board expresses its deep sense of gratitude to the Government of India ReserveBank of India and Securities & Exchange Board of India for the valuable guidance andsupport received from them. The Board also thanks the financial institutions andcorrespondent banks for their co-operation and support. The Board acknowledges theunstinted support of its customers and shareholders.
The Board places on record its appreciation for the valuable contribution made by Shri.Sriram Ramachandran who ceased to be a member during the year.
The Board places on record its appreciation for the dedicated services and contributionmade by members of staff for the overall performance of the Bank.
For and on behalf of Board of Directors
MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER