Backed by its 125 years banking experience resilience and intrinsic strengths PunjabNational Bank(PNB) continued its growth story during the financial Year 2020. During theyear
Indian economy faced headwinds on account of slowdown in global growth volatility ininternational crude oil price muted demand and sluggish private investments. Despitechallenging economic conditions Bank's business improved and core operations haveremained profitable. The highlight of the performance was improvement in asset qualityincreased core operating profit and the strengthened capital position. In addition
Bank under took various initiatives in the areas of the three Ps i.e. People Processesand Products in order to transform and align with the changing financial environment andcustomer needs.
The second half of the year marked the onset of PNB's mega journey towards becoming thesecond largest public sector bank in the country. The announcement and initiation of theprocess of amalgamation of Oriental Bank of Commerce (OBC) and United Bank of India (UNI)into PNB has been a part of Government's larger vision of making the Indian bankingsector more resilient stronger and globally competitive. Concurrently with the process ofamalgamation Bank continued focus on business growth.
The Bank's Gross Domestic Business increased to `1181538 crore as at the end of March'20. While Gross Domestic Advances stood at ` 495045 crore Domestic Deposits were at86493 crore. The Bank's CASA Deposits stood at `302475 crore and the domestic CASAshare was at 44.05% as at the end of March '20. There has been decline in Gross Non
Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) helped by Recovery ofmore than `12380 crore in
FY' 20. In addition there has been YOY increase of 13.4% in Bank's Operating Profitto`14739 crore Net Profit `336 crore and improvement in CRAR to 14.14% during FY '20.
Bank's multifarious achievements have been acknowledged at diverse prestigious nationaland international platforms. Among other accolades your Bank won the IBA BankingTechnology
Awards 2020 in the category of most Innovate Project using
Technology for PNBOne. For the second year in a row Bank was recognized as "TheBest Bank for Corporate Social
Responsibility" by the Asiamoney Banking Awards 2020.
The Bank was also adjudged Bank of the year' by Indo-American Chamber Of Commerce(IACC) and recognized as the Best State
Nodal Bank Award 2018-19 by Ministry of Rural Development.
Besides your Bank has been ranked 3rd among all Public Sector
Banks in India in the recent Forbes magazine's annual ranking of the world's 2000largest public companies.
Against this backdrop your Directors have pleasure in presenting the Annual Report ofyour Bank for the year ended March 31 2020 (FY 2019-20) along with its audited AnnualFinancial Statements. OUR PERFORMANCE
A. FINANCIAL PERFORMANCE Assets and Liabilities
Total Assets of the Bank increased YoY by 7.2 % to
Rs 830666 crore as at 31st March 2020 from Rs 774949 crore as at 31stMarch 2019. During the period the Net
Advances of the Bank increased by 3.0% to Rs 471828 crore from Rs 458249 crore.
Investment increased YoY by 19% to Rs. 240466 crore from Rs. 202128 crore as at31st March 2019.
On the Liabilities side Deposits rose by 4.1% YoY from
Rs 676030 crore to Rs 703846 crore during this period.
Borrowings increased YoY by 27.7% to Rs 50225 crore from Rs 39326 crore in March2019.
Net Interest Income
The Net Interest Income of your Bank increased YoY by 1.6% to Rs 17438 crore duringFY'20. While Interest Income grew 4.9% YoY to Rs 53800 crore Interest Expenses growthwas at 6.5% to Rs. 36362 crore.
Operating Profit of your Bank grew by 13.4% YoY during the FY to Rs 14739 crore. TotalIncome of your Bank increased by 7.5% YoY from Rs. 58688 crore in FY'19 to Rs. 63074crore during FY'20. Total Expenses increased from Rs. 45692 crore in FY'19 to Rs. 48336crore in FY'20.
Bank has earned a Net Profit of Rs. 336 crore in FY'20 against a Net Loss of Rs.9975crore during FY '19.
Provisions and Contingencies
Total provision declined YoY by 37.3% to Rs. 14402 crore in FY'20 from Rs. 22971 inFY 19. Provision for NPA stood at Rs 14464 crore in FY' 20 and Provision for IncomeTax was at Rs. 403 crore. Provision Coverage Ratio of the
Bank improved to a robust 77.79% as at Mar '20 from 74.50% in Mar '19.
B. OPERATIONAL HIGHLIGHTS
Despite challenging economic conditions the Bank performed creditably. Some of theoperational highlights of FY 20 are listed below:
? Bank's Global Business reached the mark of Rs 1220775 crore in 31.03.2020.
? CASA Deposits at Rs. 302475 crore remained one of the highest amongst nationalizedbanks with 44.05% share in Domestic Deposits.
? Retail Advances grew by 6.1% YoY to Rs. 83479 during the year with 14.2% growth inHousing Loan Segment.
? Domestic Cost of Funds declined from 4.29% in March 2019 to 4.25% in March 2020.
? Bank registered a Net profit of Rs. 336 crore during FY '20 after a gap of 2financial years.
The capital adequacy of the Bank improved during the financial year on account ofCapital infusion by Government of India (GOI). The Bank continued with its focus onsustainable business growth by targeting better rated borrowers with low risk profile.Going forward following the amalgamation the Bank is strategically well placed to meetthe growing credit needs of the economy.
? Capital Position of the Bank has improved with the
Capital infusion of Rs. 16091 crore by the GOI. The Capital Adequacy ratio of the Bankstood at 14.14 % as of March 31 2020 with Tier-1 capital at 11.90% and Common EquityTier-1 (CET-1) at 10.69%.
? Bank raised Tier-II Bonds of Rs.1500 Crore during the year and Tier II capital stoodat 2.24 % as on March
31 2020 .
? The Credit Risk Weighted Assets (RWA) density of the Bank stands at 46.8% in March2020 on account of focus on better rated accounts and churning of portfolio of the Bank.
IT and Digital Initiatives
? Your bank believes in leveraging technology for delivering best customer experience.Bank continues to invest in automation of our internal processes to improve efficiencyrisk management and reduce cost of operations. For instance Artificial Intelligencepowered software solution "PIHU" the PNB Chatbot was introduced for enhancedcustomer experience.
? The PNB ONE application Bank's unified mobile banking application crossed more than30 lakh users as at the end of 31st March 2020 with total transactions duringthe financial year at 96.23 lacs. During the financial year Bank has added several newfunctionalities like Premature FD Closure implementation of PPF Services On line RDOpening etc. in PNB ONE for greater customer convenience.
? The Bank is focusing on harnessing the power of both big data and small data not onlyto drive decision-making and operational excellence but also to provide personalizedexperiences to increase customer delight. Bank has a large Database and is using advancedEnterprise Data Warehouse Technology for leveraging smart data mining for reporting andtaking informed decision for enhanced business decision support. To augment Bank'sanalytics capabilities a
Centre of Excellence (CoE) with analytics technology platform has been set up usingemerging technologies like Machine Learning and Artificial Intelligence
? The Bank has been taking initiatives and steps to transform and align with thechanging financial environment and customer needs. Under the comprehensive in-housetransformational exercise various initiatives were taken as per the ideas received fromthe field on three Ps i.e. People Processes and
? Various transformational activities like strengthening of the Stressed assetManagement Vertical through automation revamping of inland trade finance marketingstructure strengthening Inspection and Audit function etc. were undertaken.
? The Integrated Management Office (IMO) was established for managing and co-ordinatingthe overall process of amalgamation of erstwhile Oriental Bank of Commerce erstwhileUnited Bank of India with Punjab National Bank. Following transformational activitiesconsidering the present scenarios and industry's best practices have been undertaken tostrengthen the control mechanism for increasing size of the bank:
? All the products and policies across PNB erstwhile OBC & erstwhile UNI havebeen harmonized and the best products and policies across the three banks have beenadopted taking into account customer and employee needs along with the business interests.
? Revamping of Organisation Structure for the amalgamated entity.
? Verticals for various workflows to have specialized and effective processing areoperational and equipped with skilled staff like Credit
Processing Offices PNB Loan Point (PLP)
Mid Corporate Centers (MCC) Large Corporate Branches (LCB) & Zonal Risk ManagementCells
(ZRMC) Trade Finance Centers (TFC) CASA Back Offices.
C. ASSET QUALITY
Improvement in asset quality continues to be one of the top priorities for the Bank. Asa result of focused efforts in this direction Gross NPA ratio of the Bank declined to14.21% as at 31st March 2020 from `15.50% in 31st March 2019. Similarly Net NPA ratio hasdeclined to 5.78% in Mar '20 from 6.56 % in Mar '19. Provision Coverage Ratio (PCR)improved to 77.79% as on 31st March 2020 from 74.50% as on 31st March 2019.
Total Cash Recovery for the FY 19-20 have been
Upgradation for FY 19-20 have been at `1598 crore.
Upgradation Through Resolution Mechanism
The Resolution Cell was created to exclusively deal with
Restructuring/Resolution of NPA accounts and recovery in NCLT cases. The detailsregarding the same are as under:
| || |
(Amount in Rs. Crore)
| ||Restructured Accounts No. of A/c ||Total Sanctioned Amount |
|FY 2019-20 ||5 ||1668 |
Further a sum of ` 3754 crore was recovered in NPA accounts under IBC in NCLT.
Total Number of Auctions held during 01.04.2019 to
31.03.2020 were at 12499 (including 2036 auctions held through e-Bikray Portal). No.of Successful
Auctions during 01.04.2019 to 31.03.2020 stood at 859 (including 103 successfulauctions through e-Bikray Portal).
Sale of Assets to ARC
Details of financial assets sold to Securitization/ Reconstruction Company (SC/RC) forAsset Reconstruction is as under:
| ||(Amount Rs.in crore) |
|Items ||FY 19-20 |
|i. No. of Accounts sold to ARCs ||3 |
|ii. Book Outstanding of Accounts Sold ||37.56 |
|iii. Aggregate consideration received (100% cash) ||19.48 |
Initiatives taken to Improve Asset Quality during FY '20
? A Digital Web Application & Mobile App (M-Touch) has been developed tocapture the records of all field visits made by the Branch Officials for recovery in NPAaccounts. This is based on reference received from field functionaries and need to developa proper system of documentation / record of the field visits made by the officials forrecovery in NPA accounts.
? Bank devised two Special One Time Settlement (OTS) Schemes during FY 19-20:
1. Non-Discriminatory and Non-Discretionary Special OTS Scheme 2019: For NPA Accountsupto Rs 5.00 crore.
2. Scheme for Resolution of Stressed MSME Assets (SASHAKT):- For assets withoutstanding above
Rs. 5.00 crore. and upto Rs 50.00 crores.
3. Under special OTS scheme(s) 70929 OTS were approved involving balance outstandingof Rs 1469 crores and total OTS amount of Rs 1052 crores.
? During FY 2019-20 more than 8000 recovery camps were conducted.
? Bank's E-auction portal was integrated with IBA's
E-auction portal "E-BIKRAY" and Bank moved all its auctions for immovableproperties on that platform.
D. INFORMATION TECHNOLOGY AND DIGITALIZATION
Keeping in view the Government of India initiative of a
Digital India PNB has incorporated Digitalization at all levels and across allsections of customers. Owing to these efforts Bank has registered 49.35% YoY growth indigital transactions.
? Alternative Delivery Channels a) Internet Banking: Bank has shown a growthof 13.5% in respect of IBS users in its retail and corporate segments as on 31st March2020. In order to further promote digitization and make Internet banking services moresecure and useful to the customers Bank has introduced many features during FY 19-20 suchas Applying for Initial Public Offer(IPO) PNB VERIFY Debit
Card On/Off facility Facility of Destroying cheques Updating Limits of Debit cardsetc. Besides many more features are under customisation such as its integration withBharat Bill Payment System of NPCI Insta Demat Account opening Cardless Cash withdrawalfrom ATMs and online submission of Form 15G/H. b) PNB ONE: Users of Bank's unifiedmobile banking application PNB ONE increased to 33 lakh as on 31st March 2020 with total96.23 lacs transactions during this financial year. Launched in December 2018 this all inone application allows transfer of funds viewing account statement managing debit card& credit card and many other value added services at customer's features have beenadded fingertips. during the year to make it more useful to the customers such as Pay tocontacts its availability in 7 major Regional Languages View holding details and valueof holding in linked Demat account Link and Pay to
Sukanya Samridhi Account(SSA) and Set debit card limit. Many more features are in thepipeline such as its integration with Bharat Bill Payment System Cardless
Cash withdrawal and Blocking of UPI services etc. c) BHIM PNB (UPI): As on 31stMarch 2020 there has been around 30% increase in users of BHIM PNB that allows easy andseamless transfer of money between any two parties via smart phone through virtual addressor Account number and IFSC. d) ATMs: The Bank has a vast Network of 9168 ATMs witha strong card base of more than 2.44 crore. During the year 2019-20 the total averageUptime and availability for the financial year was 95% and 88% respectively with averagemonthly hits of 148.
? Digital Initiatives during the Year a) PIHU (PNB's Instant Help for You): PNB'sChatbot
"PIHU" is an artificial intelligence (AI) powered software solution forenhanced customer experience which facilitates instant help to customers. PIHU instantlyresponds to user queries using natural learning processing and AI. b) PNB Verify:PNB-Verify is a device binding solution for Retail Internet Banking users in which thetransactions can be authenticated using the Mobile application in
App notification instead of using the SMS based OTP.
c) New cards launched:
? Rupay JCB Debit Card - With an objective to reduce the dependency onwell-established card network service providers and to provide benefits to customersthrough exclusive offers and lowest interchange fee at international locations NPCI hastied up with Japan Credit Bureau (JCB). In order to provide increased convenience to thecustomers PNB started the issuance of Rupay JCB Platinum International Debit Cards.
? Rupay Select Debit Card - PNB is one of the to launch Rupay Select Debit firstCard during the year. The Debit Card has been designed for ultra HNI customers & thetheme of the card is FITNESS.
? NCMC Debit Card - PNB has launched its Classic Platinum &International variants of National Common Mobility Card (NCMC) Debit Cards which is aninter-operable transport card conceived by the Ministry of Housing and Urban
Affairs of the Government of India.
? Rakshak Plus Debit Card - Rakshak Debit Cards in both Classic as well asPlatinum variant have been launched with additional features to serve customers in IndianArmy/Navy/Air Force & Indian Coast Guard. d) In order to promote digital transactionsand to bring maximum customers to digital fold Bank is providing various promotionaloffers wherein Cash Back Gift Vouchers etc. will be given to the customers for performingdigital transactions.
e) Bharat Bill Payment System(BBPS): Bharat Bill
Payment System is an integrated bill payment system in
India offering interoperable and accessible bill payment service to customers. UnderBharat Bill Payment system introduced by NPCI Bank has gone live on Internet Banking(pre-login) Business Correspondent Channel and NPCI BHIM App. Bank has also successfullyonboarded HUDA as a biller in Biller Operating
Unit (BOU) category in January 2020. In Customer Operating Unit (COU) category thebank is working on making Internet Banking (Post Login) Mobile Banking
(PNBONE) & Regional Rural Bank(RRB) live on BBPS. f) PNB has been the pioneer Bankin upgrading the Core
Banking Solutions to the latest Version i.e. Finacle 10.
All the bank's service outlets/centers are working under
CBS thereby extending convenient "anywhere anytime banking" to all customers.
g) Few of the latest features introduced during the year are enlisted below:
? Implementation of PPF Services in PNB One:
Customers can avail following PPF services from Mobile Banking application-PNB One.
? Linking of PPF accounts.
? Viewing of PPF account statement.
? Transfer to PPF account.
? Implementation of Premature FD Closure functionality in PNB ONE
? On line RD Opening in PNB ONE: Customers can now open Recurring depositaccount by using Mobile Banking channel.
? E-Interest Certificate
Interest certificateboth provisional and final for the following can be generated fromMobile Banking
- Housing Loans
- Education Loans
? Chatbot - PIHU in PNBONE: The Chatbot PIHU is available to customers fortheir queries related to App on Pre-log in page of PNB ONE.
? PNB Suraksha in PNB ONE: Additional cheque authentication feature has beenadded for the safety of cheques issued by customers.
? Online Opening of PNB Sugam and Uttam Plus (111/222/333/444/555 days) FDs: Thefacility for opening PNB Sugam and Uttam Plus FDs with
(111/222/333/444/555 days) period was made available in Retail Internet Banking.
? ASBA Submission Revision and Withdrawal Request: A new feature of ASBAhas been introduced in Retail Internet Banking Services post login. The customer can nowsubmit revise and withdraw the ASBA applications inside the login of Retail InternetBanking Services.
? Functionality to view Cheque Image: Integration has been done with NPCI tofetch the image and display the same to customer in Retail IBS.
? Opening of Sukanya Samridhi Account has been enabled through Retail InternetBanking Services.
? Facility to capture request for Locker through Website was enabled.
? Issuance of TDS/Form 16 certificate:Customer can generate TDS/Form 16certificate pre-login page in PNB ONE.
? Tax Credit statement/ Regenerate tax challans:
User can generate duplicate tax challans through pre-login page in PNB ONE.
? Currency Denomination Selection in ATMs:
Customer using ATM can select the denomination of currency to be dispensed while doingcash withdrawal transaction.
? Implementation of PNB VERIFY in Retail Internet Banking: PNB VERIFY isintegrated with Internet Banking Services as an alternative option to SMS OTP for allfinancial and certain non-financial transactions.
E. MANAGEMENT INFORMATION SYSTEM
The Bank believes in harnessing the power of both big data and small data not only todrive decision-making and operational excellence but also to provide personalizedexperiences to increase customer delight.
Enterprise-Wide Data Warehouse (EDW): Bank has large Database andusing advanced Enterprise Data
Warehouse Technology for leveraging smart data mining for reporting and taking informeddecision by management. It is single source of structured Data that enables reporting forenhanced business decision support across the Bank. Enterprise Data Warehouse working asdownstream for various applications like CRM AML Risk Solution Analytics and many more.It also plays an important role in complying with regulatory reporting requirements.
Data Analytics: The Bank has set up a Centre of Excellence
(CoE) with analytics technology platform with scalable to the
Big Data Lake to augment our capabilities. The CoE using emerging technologies likeMachine Learning and Artificial
Intelligence and working with multiple lines of businesses to identify and realize newvalue-creation and cross-sell opportunity and to build the Bank's capability in leveraginganalytics to increase revenue reduce costs and improve risk profiling of the customerbase.
Bank is utilizing internal as well as external data to prepare long term insights andactions. By using Data analytics tool Bank is practicing to maximize its digital impactin terms of context and targeting.
Bank has been awarded on 6th February 2020 as Runner Up' with IBA award for FY2018-19 for "Best use of Data
Analytics for Business outcome" in Large Bank category.
F. BRANCH NETWORK
The Bank has one of the largest networks of 7041 branches as on 31.03.2020 comprisingof 1259 Metropolitan 1430
Urban 1753 Semi Urban and 2599 Rural branches. Rural and Semi Urban Branches (RUSU)comprise around 62% of the Total Branch Network. International Presence
At present Bank has its overseas presence in 6 Countries by way of 2 branches(1 at HongKong and 1 at Dubai)
2 Subsidiaries (London and Bhutan) 1 Associate (Kazakhstan) 1 Joint Venture(Nepal).
G. INTERNATIONAL BANKING
As on 31.03.2020 there were 146 branches authorised
(Standalone PNB) to handle Foreign Exchange Business and 3 Trade Finance Centers (TFC)functioning at New Delhi Chennai & Kolkata specialized for centralized handling oftrade transactions. Bank has 9 Exchange Bureaus at important tourist centres to facilitateencashment of Foreign Exchange Currency Notes by foreign tourists/NRIs.
Domestic Forex Business (Pnb Stand Alone As On 31.03.2020)
Bank has registered a Foreign Exchange Business
Turnover of Rs.80068 crore (Exports and Imports together) for the FY 2019-20. There isan International Service Branch (ISB) functioning at New Delhi for handling InwardRemittances of the Bank as a whole. During FY 2019-20
Bank has handled remittance business of Rs.51433 crore. Bank Rupee DrawingArrangements (RDA) with 32 exchange Houses (24 in the Gulf 2 in Singapore 2 in the USA1 each in UK Australia Canada and Japan) to facilitate remittance from NRIs. The Bankalso has remittance arrangement under Money Transfer Service Scheme (MTSS) with TransfastWorldwide.
Overseas business of the Bank is USD 5.05 Billion*
(equivalent to Rs.38179 Crore) as at March 2020 (@
FEDAI rate of USD INR 75.6650 as at 31.03.20). Overseas branches are focusing on HighQuality Medium/ Long term loan portfolio with Assetstobuildadiversified low Credit RiskWeight to improve profitability and Introduction of Trade Credit Framework will help thebusiness growth of the branches in the next financial year.
Bank has procured additional funding support of
USD 1.7 Billion from RBI for Oil Marketing Companies to be disbursed from overseasbranches of our bank. Overseas
Branches have augmented their Treasury operations as reflected in Trading Profit whichincreased from USD 1.01 Mio in 2018-19 to USD 3.33 Mio in 2019-2020.
Steps Initiated for Forex Business growth:
? Two new Trade Finance Centres (TFCs) have been formed one at Kolkata (startedfunctioning w.e.f
02.03.2020) and other at Mumbai which will start functioning after lifting of lockdownto deliver quick and best services besides existing TFCs already functioning at Delhi andChennai.
? Service Charges on Foreign Exchange transactions have been rationalized among theamalgamated Banks and conveyed.
? Bank has proposed Robotic Process for corporate customers wherein forex relateddocuments may directly be submitted from their office to TFCs thus providing greatcomfort to them and helps in increasing
Forex business. The work is in progress at IT and TFC level for making it LIVE.
? An online application facility is provided for prospective export credit customers onBank's corporate website
(www.pnbindia.in -> Online Services ->Export Credit
Online App) Net Banking at Internet Banking (www. netpnb.com->Online application->Export Finance) and Mobile Banking platforms (PNBONE App -> More -> exportFinance) to enable the exporters to apply online. Efforts are being made to popularize thefacility among prospective customers.
? A separate desk has been designated at TFC Delhi with a motive to complete the forextransactions with a Turnaround Time (TAT) of H+2 for HNI customers of
Mumbai and Ludhiana zones and all LCB/IBB clients exclusively.
? 100% implementation of foreign exchange transactions at TFC's to T+0 in order todeliver quick and best services as well as to mobilize optimum business.
H. BUSINESS DIVERSIFICATION
? Life Insurance:
The Bank mobilized premium of Rs 2445 crore from
143640 policies during 2019-20 as against total premium of Rs2226 crore mobilizedduring FY 2018-19. The Bank's earnings from Life-Insurance business grew by 9.29% duringFY 2019-20 to Rs181.25 crore from Rs165.84 crore during FY 2018-19.
Total business mobilized under Life Insurance business since inception is Rs.10553crore from 956708 policies and total earning amounted to Rs. 860 crore.
? Non-Life Insurance:
Under the Non-Life Insurance the Bank has tie-up with The Oriental Insurance CompanyLimited The
New India Assurance Company Limited (Arrangement discontinued since 01.04.2020) BajajAllianz General
Insurance Company Limited & Religare Health Insurance Company Limited (Stand-aloneHealth
The Bank's gross written premium stood at Rs. 371 crore from 9.13 lakh policiesfor FY 2019-20 vis--vis Rs.357 crore from 8.30 lakh policies for
FY 2018-19. Further the revenue earned during FY 2019-20 grew by 29% to Rs. 62crore from Rs. 48 crore during FY 2018-19. 262315 Health insurance policies were sourcedin FY 2019-20 as against 217355 policies sourced in FY 2018-19 showing aYoY growth of 20.68%.
? Mutual Funds:
The Bank is distributing and marketing Mutual Fund products of M/s Principal AssetManagement Pvt. Ltd.
M/s Nippon Life Asset Management Ltd. M/s UTI As- set Management Company Ltd.M/s Aditya Birla Sun- life Asset Management Company Ltd. M/s LIC Mutual
Fund Asset Management Ltd and M/s Tata Asset Management Ltd.
During FY 2019-20 Bank sourced 31283 fresh
Systematic Investment Plans (SIPs) as compared to 20370 SIPs in FY 2018-19 showing aYoY growth of 53.57%.
? Depository Services:
The Bank was awarded "Best Performer in Account Growth Rate (Top DPs)" and"Top Performer in New Accounts opened" under Bank category from NSDL asDepository Participant. As a Depository Participant bank opened 1046 Demat accounts and7582
Online Trading Accounts in FY 2019-20. Income from Depository Business showed a YoYgrowth of 11%.
? Merchant Banking:
Bank has license to act as a Banker to Issue Debenture
Trustee and Merchant Banker. During FY 2019-
20 only 99 IPOs were launched whereas 139 IPOs were launched in FY 2018-19. Howeverthe amount blocked in ASBA increased from `736.37 crores during FY 2018-19 to `1420.34crores during FY 2019-20 showing 92.88% YoY growth.
? Credit Card Business
The Bank's Card Base is approximately 3.5 Lac with portfolio size of approximately `300Crore. The Cards are issued on VISA & Rupay platforms. The Credit Card Business hascontributed to the Profits during FYs 2017-18 18-19 & 19-20 at `24.56 Crore `47.33Crore and `59.97 Crore respectively.
Merchant Acquiring Business (MAB):
The Bank offers various Merchant Acquiring Platforms such as:
Point of Sale (PoS)
BHIM & Bharat QR Code-Scan & Pay
BHIM Aadhaar Pay
Internet Payment Gateway (IPG)
Bank's total Merchant Acquisition base among all platforms stands at 294043 as on31.03.2020.
? Personal Executive (PE) Model:
In order to maintain long term relationship with High Net worth Individuals (HNIs) PEModel was introduced. The same is now stabilized. There are 238 Marketing Team Members(MTMs) who report their progress daily on Performance Mirror Portal (PMP).
The following new initiatives have been taken for effective monitoring:
? Weekly authentication by Circle Marketing Heads (CMHs) on PMP.
? The report of Digital Products sourced by marketing teams has been customized inEnterprise Data Warehouse (EDW).
? Functionality of marking Attendance of MTMs by respective Circle Marketing Heads(CMHs) has been enabled in PMP.
? Reporting of new products enabled in PMP like Digital Products Govt. Businessand Retail products.
? New Initiatives during FY '20
Digital Initiatives for Solicitation of Life Insurance
Business has been taken. Interested customers may renew their policy/raise otherservice related requests by using PNB ONE mobile app and PNB Net banking services.
In order to maximise the Business potential ASBA functionality has been introducedthrough Core Bank
Solution (CBS) Internet Banking Services (IBS) and Unified Payment Interface (UPI).
I. GOVERNMENT BUSINESS
With a view to playing a more proactive role in the transfer of funds from Centre andStates to various beneficiaries
Bank has been making efforts to have a sizeable number of Public Financial ManagementSystem (PFMS) agency accounts. As on 31.3.2020 there were 2.14 lakh agency accounts PANIndia. Bank is also accredited banker to nine different Central government departmentspost amalgamation. These numbers will further rise. Bank has been increasing tie-ups withvarious State governments to cater to their specific needs.
Some of the initiatives taken up by the Bank under Govt. Business during the year aregiven as under:
? Fastag: National Electronic Toll Collection Project has been implemented and allbranches have been enabled for issuance of Fastags.
? National Pension System (NPS): Four Regional Rural
Banks sponsored by our bank have been on-boarded for NPS remittance.
? Govt. E-Market Place (GeM): Bank is the first among nationalized banks to beavailable on GeM portal for providing our services to vendors i.e. sellers and purchasers.These services include GeM pool account e-PBG (Performance Bank Guarantee) &e-EMD(Earnest Money Deposit).
? Public Financial Management System (PFMS) : Bank has timely disbursed funds ofapproximately Rs. 400 crores to about 46 lakh beneficiaries under PM Kisan Samman Nidhi.
? Integration with Cochin Port Trust through Payment gateway has been carried out.
? Commemorative Postage Stamp of the bank was released by the Hon'ble VicePresident on the 125th
Foundation Day Anniversary.
? The account of Rural Electrification Corporation
Ltd. has been sourced for the government scheme
SAHYOG and PFMS integration implemented.
? The government account for Deen Dayal Upadhyaya Grameen Jyoti Yojna has beensourced.
? Through active marketing more than 1.48 lakh PPF and more than 77000 SukanyaSamridhi accounts were opened during the FY 2019-2020.
? Series of Sovereign Gold Bond subscription launched by Govt of India weremarketed by our branches and 178 Kgs were sold.
J. TREASURY OPERATIONS
Gross Investment as on 31st March 2020 grew YoY by 18.0% to Rs 236670 crore from Rs200632 crore as on 31st March 2019. The average investments for FY '20 were
Rs.226060 crore as against Rs. 202924 cr. in FY '19. The Interest income frominvestment portfolio increased from Rs. 14106 Crore as on 31.03.2019 to Rs. 15333 Croreas on 31.03.2020.
The Bank actively traded in sovereign bonds Non-SLR bonds and equity throughout thefinancial year. Total Trading profit for FY '20 is Rs. 1632 crore as against Rs. 1093crore for FY 19 with 49.30% YoY growth. The liquidity position of the bank remainedsurplus during FY'20. Bank managed the funds by availing RBI LAF facility as well asdeploying in various money market instruments like Call Triparty Repo Order MatchingPlatform (TREPS) and Clear Corp Repo Order Matching System (CROMS). The Bank complied withall the requirements of CRR/SLR as stipulated by the regulator. From June '19 onwardsthere has been a surplus liquidity in the Banking system which has continued till Mar '20quarter with average daily of Rs. 3.03 lac crore. It was higher at Rs 4.89 lac crore on31.03.2020. RBI took steps such as LTRO of Rs 1.25 Lac crore OMOs of Rs 40000 Croresell-buy swap auctions for US dollar liquidity into the forex market to the tune of $ 2.71billion TLTRO of Rs 25000 crore and reduction of the CRR of all banks by 100 bps to 3.0%of NDTL. This collectively infused Rs 1.37 lac crore more liquidity which was warrantedsince the domestic financial conditions tightened with equity and bonds market facingmassive sell-offs by FPI during Feb '20 and Mar '20 on account of COVID-19 pandemic.
? Fixed Income (SLR/NSLR)
During FY '2020 Bank booked trading profit of Rs 1560 crore from sale of investmentsagainst Rs 747 Crore during FY '19 showing a YoY growth of 109%. Debt market witnessedvolatility in the financial year. Declining trend was seen till July '19 due to RBIcapital transfer to the Govt. which could improve its fiscal situation and the
Government's announcement of Rs. 7.10 trillion of gross borrowing and sovereign bondsin the interim budget. In August 2019 though larger rate cut of 35 bps was provided byRBI monetary policy bond yield started increasing on escalating Indo-Pak tensionrollback of an enhanced surcharge and expectations of stimulus measures from theGovernment. High bond yields continued in Sep'19 due to corporate tax cut announcementhardening of
US Treasury yields and demand of gold in international markets amid US-China tradetensions. RBI intervention through Operation Twist' i.e. simultaneous purchase andsale of Govt. securities under OMOs brought the yields down which continued followingRBI's interest rate cuts towards the close of the fiscal year. Rupee depreciated to itslower level fall in crude oil prices and US 10-yr Treasury yields also weighed positivelyon the yields.
Crude oil prices were impacted because of on-going price war and weak demand outlookamid spreading of coronavirus across the globe.
Bank earned a Gross profit of Rs 94 crore (including profit of Rs 25.66 crore and `32.17 crore arising from sale of
CDR and Preference shares respectively) in the FY'20 as compared to previous year'sfigure of `204 crore
(including profit of`107 crore arising from stake sale in
ICRA).The dividend income for FY'20 was Rs154 crore.
Returns for both benchmark indices were positive till Jan '20; thereafter it was innegative territory amid COVID-19 pandemic. Global markets also witnessed volatility dueto US-China tradewarandfluctuatingcrude oil prices due to operational disruptions in theGulf of Mexico and on-going geopolitical tensions between Iran with UK and Saudi Arabia.Most global stocks were severely down at the close of the financial year.
Net forex income has declined to ` 1433 crore for the FY ended March 2020 from `1881crore during FY 2019. Exchange profit also declined from `455
Crore in March 2019 to `378 Crore in March 2020 due to reduction in merchant businessvolume. However forex trading profit increased from`74.0 Crore in FY'19 to Rs 96.5 Crorein FY'20 showing 30.4% YoY growth. The Rupee went downwards when the WHO declared
Covid-19 as a pandemic and market was expecting a global economic slowdown due toextensive lockdown worldwide.
K. CUSTOMER CARE
The Bank fully realizes the importance of customer service and continues to lay utmostpriority to rendering prompt and efficient service to customers. In order to achieve thedesired objective the Bank has formulated a robust Grievance Redressal Policy.
Initiatives undertaken during the year for improvement in customer service:
? The Bank has an On-line Grievance Redressal
Management Portal called (Centralized Grievance
Redressal Management System (CGRMS).
? Customers can lodge their requests/ complaints in the CGRMS through Bank'swebsite Internet Banking Service Mobile Banking Service and Mobile App.
? The same has been upgraded during the period and added new features as per EASEIndex like auto-escalation of complaint feedback from complainant proactivecommunication to customers & tracking of complaint by complainants. Further
CGRMS now has different resolution time for different types of complaints.
? Complaints are also received at Head Office all the ZOs/COs and branches. Theseare entered in CGRMS Portal. Through this system the customer gets an immediate automaticacknowledgement of the complaint and can keep a track on the complaint also.
There are 1856 SAP-CRM enabled branches on PAN
India basis in the Bank.
? The Bank has state-of-the-art Contact Centers at
Gurgaon and Noida to provide tele-banking services to its customers on 24 x 7 x 365basis through two leading Service Providers. In addition to these two Primary Sites theBank has also established two Secondary Contact Centers at Bhopal & Hyderabad toprovide tele-banking services to its customers in 11 languages. Bank has replaced onevendor during the period and secondary Contact Centre is proposed at Dehradun in place ofHyderabad. The number of services extended by Contact Centre through Tele
Banking increased from existing 25 to 31 during the period thereby making them morecustomers friendly.
? The Bank has constituted teams of officials at Customer Care Centre at HeadOffice Zonal Offices and Circle Offices to pay incognito visit to branches to assessstandard of Customer Service in the branches.
? During FY 2019-20 officials of the Bank made 8997 incognito visits to thebranches on Pan India basis and deficiencies pointed out were taken up for takingcorrective steps to improve customer service.
? The status of complaints received by the Bank is reviewed by "CustomerService Committee of the Board" a Sub-Committee of the Board on quarterly basis. Themeetings of the Sub-Committee are presided over by the MD & CEO.
? The Bank has a "Standing Committee on Customer Service" whichalso reviews customer service of the Bank on quarterly basis.
? The Bank has in place an Internal Ombudsman as per the recommendations of theDamodaran Committee.
The system ensures greater transparency in the redressal of grievances by the Bank.
? Customer Service Committees in all the branches and Circle Offices look into thequality of customer service rendered and examine the feedback/suggestions for improvementin customer service. These committees meet once in a month where staff and the invitedcustomers interact freely on Customer Service related issues of the Bank.
? Theme Based Meetings are conducted at monthly intervals in all the branches on apre-decided latest topic/changes on the latest products & services. Main objective ofthe Theme Based Meeting is to make awareness among the field staff about Bank's newproducts and services and to sensitize them about the current issues of maximumimportance.
Out of a total number of 45365 complaints (i.e. 966 complaints outstanding as on01.04.2019 and 44399 complaints received during FY 2019-20) 44418 complaints wereresolved up to the satisfaction of the complainant till 31st March 2020.
L. IMPLEMENTATION OF OFFICIAL LANGUAGE
Punjab National Bank has always been a pioneer in the implementation of the OfficialLanguage. Your bank has ensured compliance with the instructions received by the
Government of India Ministry of Home Affairs Department of Official LanguageParliamentary Official Language
Committee and Ministry of Finance Department of Financial
Services. Your bank has achieved most of the targets set for the financial year 2019-20by the Government of India Ministry of Home Affairs Department of Official Language.During the financial year 2019-20 Punjab National Bank has made overall efforts topromote the progressive use of Official Language Hindi as per the instructions of the
Government of India and to ensure compliance with the
Official Language Policy and Rules. Effective steps were taken during the financialyear 2019-20 to provide in-depth information about your Bank's products and schemes inHindi on the Bank's website. All mobile applications like PNB One Bhim PNB InternetBanking etc. of the bank have been provided with Hindi and other regional languagefacility. Various promotional materials related to micro small and medium enterprises anddigital banking are prepared by the bank in Hindi and regional languages also. Hindi andregional languages have been used in all promotional campaigns related to all governmentschemes like Atal Pension Yojana' Pradhan Mantri Jeevan Jyoti Bima Yojana'Pradhan Mantri Suraksha Bima Yojana' Sukanya Samriddhi Yojana' etc. Duringthe financial year2019-20 the bank has received several awards for outstandingperformance in the use of Hindi. The Bank has received the first prize under the
Government of India's highest "Rajbhasha Kirti" award for A'region. Out of a total of 24 awards in the Bank category announced by the eightRegional Implementation
Offices of the Ministry of Home Affairs Department of Official Language 14awards were won by your bank and an award has been received by Chandigarh Tolic (Townofficial language implementing committee) where our bank is convener bank which isthe highest record of awards received. Apart from this your bank has also been awarded 150awards in Region A' 71 awards in Region B' and
31 in Region C' by Official Language Implementation
Committees and NGOs located in different regions of the country. Total 252 awards havebeen received by our
Bank. Our staff members have also received 174 awards at the individual level.
During the financial year 2019-20 the bank celebrated September 2019 as Hindimonth and on 14 September 2019 a grand function of Hindi Diwas was also organizedin the Head office. Various programs / competitions were organized during this period andthe winners were awarded prizes by the Managing Director and Chief Executive
M. PNB'S SUBSIDIARIES AND REGIONAL RURAL BANKS
PNB Gilts Ltd: During the year 2019-20 debt market remained volatile amidstpositive factors such as successive policy rate cuts by RBI on account of growth concernsand adverse factors like fiscal deficit concerns defaults by NBFCs and sharp increase inCPI inflation.The 10-yr benchmark yield touched a high and low of 7.47% and 5.98%respectively during the year and closed at 6.14 % as on 31.03.20.
Against the backdrop of volatile market conditions PNB
Gilts Ltd continued to fulfill all its obligations as a Primary Dealer mandated by RBIboth in Primary and Secondary market. Alongside the major focus of the company remainedon enhancing the scale of operations and also undertaking new activities so as to utilisecapital efficiently.
Balance sheet size increased considerably. Marketing and sales functions werestrengthened. Company also forayed into Debt capital market (DCM) business as arrangers toCorporate Primary Issuances and entered into the top ten ranking (7th rank) in the primeranking league table. As a result of all the above despite volatility Company posted aProfit Before Tax of`249.81 Crores during FY'20 vis-a-vis PBT of Rs. 83 Crores duringFY'19. Profit after tax (PAT) amounted to `186.35 Crores during FY'20 as against `52.86crore in the previous FY'19. This is the highest PAT achieved by the Company sinceinception.
Capital adequacy remains strong with its capital to risk weighted assets ratio (CRAR)at 32.47% as on March 31 2020 (36.58% as on March 31 2019) well above the regulatoryminimum of 15% for PDs.
PNB Investment Services Ltd: The Company is a profit making company from the firstyear of its operations.
During the year ended March 2020 the Company earned fee based income of `4.65 crorewith total income of `7.46 crore as against fee of `5.80 crore and total income of Rs.8.70 crore respectively for the year ending March 2019.
Profit before Tax during the period ending March 2020 was `0.76 crore as against `2.41crore for the period ending March 2019.
In debt syndication PNBISL could bring quality clients to the fold of PNB. During theyear the Company along with
SBI could assess finalize and arrange debt requirements of Patanjali Group foracquisition of Ruchi Soya under NCLT.
Further JV of the Ministry of Railways and Govt. of
Maharashtra has selected PNBISL as sole arranger for
PNBISL as debt arranger for their City Gas Distribution projects road constructionprojects under HAM model. As its core business PNBISL conducted viability studies andassessed sustainable debt requirements of stressed assets.
In Trusteeship business market is undergoing a pricing change and a cyclical declinein fee. The company has been able to record a steady growth in its trustee business but ata reduced fee level. The company continues to build on its aim to be a trusted partner ofleading banks and corporates.
The company plans to expand its business operations synergistically with the businessof parent bank particularly in Corporate Advisory Vertical as multiple businessopportunities emerge in expanded business horizon of amalgamated bank.
PNB International Limited (PNBIL): PNBIL is focusing on
UK based loan book through high quality assets backed loans. PNBIL has also upgradedits technology bouquet to customers by offering Mobile Banking Services; in addition toexiting Internet Banking and Debit Card facilities. PNBIL has strengthened its riskmanagement policies and governance practices in the Bank. PNBIL is having customer depositof $677mn and advances of $846mn as on March'20. The Operating Profit before provisiontax and dividends for FY'20 stood at $16.77 mn which is higher from $16.42 mn in FY'19.Total income for FY'20 stood at $46.85 mn and net interest Income was at $ 30.62 mn. Netprofit (after tax) for FY'20 was $ 2.76 mn. Brexit uncertainties impacted the UK economyduring 2019-20 and COVID19 Pandemic also significantly curtailed business activities infirst quarter of 2020. PNBIL expects economic recovery and improved business sentiment in
2nd quarter onward during FY 2020-21.
Druk PNB Bank Ltd: Druk PNB Bank Ltd Bhutan Banking
Company having its corporate office at Thimphu Bhutan started its operation on 27thJanuary 2010 in Bhutan as the country's third commercial Bank with a component of bothFDI and joint venture in the Banking Sector. Punjab
National Bank (PNB) India came in as the foreign investor injecting 51 percent of itspaid up Capital. Presently Bank has 8 branches and 30 ATMs spread across the country.Total Business of the DPNBL increased to `2534.39 Crore as on 31.03.2020 from `2141.19Crore as on 31.03.2019 showing YOY growth of 18.36%. CASA Ratio of the Bank stood at 33.14% as on 31.03.2020. The Bank is currently operating with a network of 8 Branches and 30ATMs. Profit of the Bank has decreased to`18.48 Crore as on 31st March 2020 from `27.54Crore as on March 31 2019. Paid up capital of the Bank as on 31st March 2020 is `70Crore.
i) REGIONAL RURAL BANKS (RRBs) beenAssponsored 31.03.2020five by the
Bank operating in five States namely Bihar Haryana Himachal Pradesh Punjab andUttar Pradesh covering 96 districts with a network of 3354 branches.
Total Business of sponsored RRBs as on 31.03.2020 was
`113694 crore. Deposits of RRBs are `69452 crore and advances are `44242 crore ason 31.03.2020. All the Sponsored RRBs (except DBGB Patna) are in Profit and combined NetProfit of RRBs during the Financial Year ended Mar 20 was `141.34 crore. The RRBshave cumulatively opened 7015562 accounts under Pradhan
Mantri Jan Dhan Yojana (PMJDY) as on 31.03.2020 with RuPay ATM card issued to 3714685account holders. The gross NPAs (%) of all RRBs have declined from 13.49% on 31.03.2019 to12.20% as on 31.03.2020.
Financial Performance of RRBs as on 31.03.2020
| || || |
(Amt. in Rs. Crore)
|Performance of SI. ||31st Mar'19 ||31st Mar '20 ||YoY |
|RRBs ||(Audited) ||(Audited) ||Growth% |
|1 Aggregate Deposits ||63774.04 ||69451.82 ||8.90 |
|2 Aggregate Advances ||41683.33 ||44241.99 ||6.14 |
|3 Aggregate Net Profit ||-433.06 ||141.34 ||132.64 |
|4 Branches under CBS ||100% ||100% || |
|5Profit Per Employee ||-0.03 ||0.02 ||163.60 |
|(` lakh) || || || |
|No. of Loss Making || || || |
|6 Branches (being 12 month old or more) ||169 ||58 || |
N. AWARDS AND ACCOLADES
Bank's effort have been recognized at various platforms.
The Bank has been conferred the following awards for initiatives taken in the field ofInformation & Technology for the year 2019-20:
? PNB won IBA Banking Technology Awards 2020 in the following categories i.Winner in the Most Innovate Project using Technology for PNBOne. ii. Runners Up inBest Use of Data and Analytics for
Business Outcome in the Large Bank Category.
? Bank won BFSI Digital Innovation Awards in the category of
Robotic Process Automation.
PNB was adjudged Bank of the year' by Indo-American Chamber Of Commerce(IACC). Bank has also been recognized as the Best State Nodal Bank Award 2018-19 byMinistry of Rural Development Government of India.
Bank has received award of Governance Now BFSI Awards 2019- Mobile App and SME Connect.In addition to the above the Bank has received 1st prize in Rajbhasha KirtiAward by Govt. of India (Home Ministry). Further the ASIA Money has recognizedBank as the Best Bank in terms of CSR activities. The Bank has also been bestowed withthird prize in the Scope Excellence Award 2019 in the category of Crisis Handling'.The Bank has been recognized as the Star performer Award in Account Growth Rate and Topperformer in New Account opened (Bank Category) by NSDL.
O. FUTURE BUSINESS PLAN OF THE BANK
Currently the world is facing an unprecedented situation on account of Covid 19pandemic which has compelled the Governments across the globe to enforce extraordinarymeasures of lockdowns. Govt. and the RBI have also announced slew of measures for varioussectors impacted due to the crisis. While the threat of recession and uncertainty loomslarge over the economy your Bank has been in forefront in providing uninterruptedservices to the customers in these testing times.
Though challenges are many this crisis also provides us an opportunity to ramp up ourtechnology initiatives and engage customers through digital channels. Going forwardenhanced digital capabilities will be indispensable amidst limited human interactions.Post-crisis in the long run all organizations will strive to minimize loss ofproductivity and trends like online functioning and remote working is gaining momentumwith focus on enabling technologies like cloud and cyber security. Recognizing this Bankaspires to be digitally well-equipped to face the emerging situation. Bank will strive toengage customers through digital channels encourage automation and digitalization ofprocesses.
Post amalgamation as the second largest PSB in India
PNB will have new opportunities due to wider customer base and their credit demands.With 125 years of banking experience Bank will be an enlarged global sized institutionwell positioned to devise better risk management and corporate governance practices. Inaddition the Bank is more strengthened with the Government of India's
Capital infusion of over Rs.16091 crore. This will enable us to enhance our stressedassets' provisions as also meet the growing credit needs of the economy. The Bank of thefuture will hinge on the pillars of 1) Customer Centricity
2) Verticalisation and Segmentation 3) Technology and Digital Delivery and 4) HumanResources. We have changesimplemented in the significant organization structure in syncwith the increased number of branches and service centres. New Verticals have beenintroduced while some existing ones have been merged. Bank is always committed to makeoptimum use of our resources to the benefit of all our stakeholders. Above all in thesechallenging times employee well-being and safety will always be our topmost priority.
We shall continue to significantprogress make in transforming the bank through newproducts and processes. Our realigned business models will enable us to implementinnovative ideas in our drive towards a vibrant PNB 2.0.
P. BOARD OF DIRECTORS
As on 31st March 2020 the Bank's Board comprised of
7 Directors including 3 whole time Directors i.e. One Managing Director & CEO andtwo Executive Directors as on 31.03.2020.
During FY'20 the following changes took place in the composition of Board ofDirectors:
? Dr. R. K. Yaduvanshi has been appointed Executive
Director on the Board of Bank w.e.f. 15.04.2019.
? Dr Rabi N. Mishra Director under RBI Nominee Director category ceased to be aDirector on Bank's Board w.e.f. 24.07.2019.
? Shri Vivek Aggarwal has been appointed as
RBI Nominee Director on the Board of Bank w.e.f. 24.07.2019 as per DFSnotification.
? Shri Mahesh Baboo Gupta Director under CA Category
Director completed his tenure on 25.07.2019.
? Shri Ravi Mittal Director under Govt. Nominee Director category ceased to be aDirector on Bank's Board w.e.f. 08.08.2019.
? Shri Pankaj Jain has been appointed as Govt. Nominee
Director on the Board of Bank w.e.f. 08.08.2019 as per
? Shri Sunil Mehta Managing Director & CEO completed his tenure on 30.09.2019.
? Shri CH. S. S. Mallikarjuna Rao has been appointed as
Managing Director & CEO of the Bank w.e.f. 01.10.2019 as per DFS notification.
? Shri L. V. Prabhakar Executive Director has been elevated as Managing Director andCEO of the Canara
Bank w.e.f. 01.02.2020 as per DFS notification.
? Shri Sunil Mehta Non-Executive Chairman of the Bank completed his tenure on15.02.2020.
? The Board wishes to place on record its appreciation for the valuable contributionmade by Shri Rabi N. Mishra Shri Mahesh Baboo Gupta Shri Ravi Mittal Shri Sunil Mehta(MD & CEO) Shri L. V. Prabhakar and Shri Sunil
Mehta (Non Executive Chairman).
Q. DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts for the year ended31st March 2020:
? The applicable Accounting Standards have been followed along with proper explanationrelating to material departures if any;
? The accounting policies framed in accordance with the guidelines of the Reserve Bankof India were consistently applied;
? Reasonable and prudent judgment and estimates were made so as to give a true and fairview of the state of affairs of the Bank at the end of the financial year and oftheprofitof the Bank for the year ended 31 st March '20.
? Proper and sufficientcare was taken for the maintenance of adequate accountingrecords in accordance with the provisions of applicable laws governing banks in Indiaand;
? The accounts have been prepared based on the principle of "goingconcern".
The Board expresses its thanks to the Government of India Reserve Bank of IndiaSecurities and Exchange Board of India Stock Exchanges Bank's customers Public and theStakeholders for valuable support continued patronage and confidence reposed in the Bank.
The Board wishes to place on record its appreciation for the valuable contribution madeby the Bank's staff at all levels and looks forward to their continued involvement inachieving the future goals.
For and on behalf of Board of Directors
CH. S. S. Mallikarjuna Rao Managing Director & CEO