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South Indian Bank Ltd.

BSE: 532218 Sector: Financials
BSE 00:00 | 07 Dec 9.09 0.17






NSE 00:00 | 07 Dec 9.10 0.20






OPEN 8.97
VOLUME 2959275
52-Week high 13.95
52-Week low 7.00
Mkt Cap.(Rs cr) 1,902
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.97
CLOSE 8.92
VOLUME 2959275
52-Week high 13.95
52-Week low 7.00
Mkt Cap.(Rs cr) 1,902
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

South Indian Bank Ltd. (SOUTHBANK) - Director Report

Company director report

To the Members

The Board of Directors is pleased to place before you the 93rd AnnualReport of the Bank along with the Audited Balance Sheet as at March 31 2021 the Profitand Loss Account and the Cash Flow Statement for the year ended March 31 2021.


The performance highlights of the Bank for the financial year ended March 31 2021 areas follows:

Key Parameters crore

2020-21 2019-20
Deposits 82710.55 83033.89
Gross Advances 59418.40 65524.02
Total Gross Business 142128.95 148557.91
Operating Profit 1617.91 1645.64
Net Profit 61.91 104.59
Capital & Reserves 5807.16 5474.80
Capital Adequacy (%) - Basel-III 15.42 13.41
Earnings Per Share (EPS):
(a) Basic EPS (in Rs.) [face value Re 1/-] 0.34 0.58
(b) Diluted EPS (in Rs.) [face value Re 1/-] 0.34 0.58
Book Value per Share (in Rs.) [face value Re 1/-] 27.75 30.25
Gross NPA as % of Gross 6.97 4.98
Net NPA as % of Net Advances 4.71 3.34
Return on Average Assets (%) 0.06 0.11


The Bank has achieved a Total Business of Rs.142128.95 crore consisting of Depositsof Rs.82710.55 crore and Gross Advances of Rs.59418.40 crore as on March 31 2021.


The Total Deposits of the Bank as on 31.03.2020 was Rs.83033.89 Crore andreached Rs.82710.55 crore as on 31.03.2021 registering a de-growth of 0.39 %.

The break-up of the deposits as on March 31 2021 is as under:

Amount % to total
(in crore) Deposits
Current Deposits 4321.09 5.22
Savings Deposits 20268.71 24.51
Term Deposits 58120.75 70.27
Total 82710.55 100.00

The Bank during the year focused on Retail advances and CASA.

CASA has grown from Rs.20759.61 crore as on March 31 2020 to Rs.24589.80 crore as onMarch 31 2021 with a growth of 18.45%. The Savings bank deposits grew by 15.48 %on a year on year basis.

The Bank has accorded priority to meaningful financial inclusion during the periodunder reporting while opening new banking relationships.


As on March 31 2021 the gross advance of the Bank is Rs.59418.40 crore. During theyear the Bank took a conscious decision to rejig the existing portfolios especially toreduce the concentration risk in Corporate book. As a result of this composition ofcorporate loan has reduced to 25% in FY 20-21 from 29% in FY 2019-20. In addition to thisunprecedented fall in economic activities due to the Covid-19 pandemic and consequentlockdowns also affected our loan book which resulted in a negative growth of 9% from theprevious year. Even though there is a negative growth in total advances Bank couldachieve regulatory prescriptions with respect to major priority sector categorisation andagricultural lending. The Bank also got an opportunity to generate additional source ofrevenue of Rs.83.61 crore during the year by selling off PSLC.

% of Target % of Achievement
Overall PSL 40.00% 40.56%
Agriculture 18.00% 18.56%
Small & Marginal Farmers 8.00% 9.55%
Non-Corporate Farmers 12.1% 12.57%
Micro Enterprises 7.50% 8.63%
Weaker Sections 10.00% 14.12%

Break-up of exposure under Priority Sector as on March 31 2021 is furnished below:

(Rs. in crore)
Agriculture & Allied activities (Net of PSLC) 11847.28
MSME (Net of PSLC) 21101.87
Other Priority Sector 2636.33
Total Priority Sector 35585.49
PSLC (General PS) 9700.00
Total PS (Net PSLC) 25885.48

During the year to ensure credit quality the Bank has enforced higher standards forcredit underwriting and has put in place enhanced administration standards. The Bank hasinitiated the process of migrating to an advance suite provided by ‘M/s NucleusSoftware Exports Ltd’ which can handle all the procedures related to retail lendingfrom sourcing to account opening including documentation.


The Net Operating Income (Net Interest Income and other income) of the Bank increasedby Rs.229.14 crore (6.81%) from Rs.3363.25 crore to Rs.3592.39 crore. The increase inNon- Interest Income was Rs.139.73 crore (13.36%) during the year. The increase was onaccount of improved performance from Treasury operations.

The Operating Profit for the year under review was Rs.1617.91 crore (before taxes andprovisions) as against Rs.1645.64 crore for the year 2019-20. The Net Profit for the yearwas Rs.61.91 crore as compared to a net profit of Rs.104.59 crore during theprevious year and the profit available for appropriation is Rs.187.86 crore as per detailsgiven below: (Rs. in crore)

Profit before taxes and provisions 1617.91
Less: Provision for NPI 168.46
Provisions for Non- Performing Assets 1446.44
Provision for FITL 51.44
Provision for Depreciation on Investments (43.69)
Provision for Income Tax 24.75
Provision for Standard Assets (84.11)
Provision for Restructured Assets (3.77)
Provision for Other Impaired Assets (5.28)
Provision for Un-hedged Forex Exposure 0.17
Provision for Non-Banking Asset Provision 64.59
Provision General-Others (63.00)
Net profit 61.91
Brought forward from previous year 125.95
Profit available for appropriation 187.86
Transfer to Statutory Reserves 15.48
Transfer to Capital Reserves 167.75
Balance carried over to Balance Sheet 4.63
Total Appropriation 187.86


The Reserve Bank of India (RBI) vide notification dated December 4 2020 stated thatin view of the ongoing stress and heightened uncertainty on account of COVID-19 banksshould continue to conserve capital to support the economy and absorb losses. Thenotification also stated that in order to further strengthen the banks’ balancesheets while at the same time support lending to the real economy banks shall not makeany dividend payment on equity shares from the profits pertaining to the financial yearended March 31 2020. The Bank did not declare final dividend for the Financial Year endedMarch 31 2020.

Given that the current "second wave" has significantly increased the numberof COVID-19 cases in India and uncertainty remains the Board of Directors of the Bank atits meeting held on May 21 2021 has considered it prudent not to propose dividend forthe Financial Year ended March 31 2021.


The Bank’s issued and paid-up capital stood at Rs.209.27 crore as on March 312021.

During the Financial Year 2020-21 the Bank has allotted 283018867 (Twenty-eightcrore thirty lakh eighteen thousand eight hundred and sixty-seven) equity shares("Shares") of face value of Rs.1 (Rupee One only) at a premium of Rs.7.48/-each(Rupees Seven and Paisa Forty-eight only) on preferential basis aggregating to Rs.239.99crore.

The capital plus reserves of the Bank has moved up from Rs. 5474.80 crore toRs.5807.16 crore on account of infusion of Capital and ploughing back of profits duringthe current financial year.


The Capital to Risk Weighted Assets Ratio (CRAR) of the Bank according to Basel IIIguidelines is 15.42 as on March 31 2021 as against the statutory requirement of 10.875(including Capital Conservation Buffer). Tier I CRAR constitutes 12.79 while Tier II CRARworks out to 2.63.

The Bank follows Standardized Approach Standardized Duration Approach and BasicIndicator Approach for measurement of capital charge in respect of credit risk marketrisk and operational risk respectively.


The Bank’s shares continue to be listed on BSE Ltd. and The National StockExchange of India Ltd. The Bank confirms that it has paid the listing fees to all theStock Exchanges for the year 2021-22.


The Bank has been successful in widening its network across India with 935 bankingoutlets (884 Branches 45 Extension Counters 3 satellite branches and 3 Ultra smallbranches) and 1315 ATMs/CRMs. The Bank had opened 8 new outlets (6 full time & 2 parttime) closed and merged 8 banking outlets with nearby branches. Also opened 31 ATMs/CRMsacross the country during the financial year 2020-21 and closed 140 non-viable ATMs. Thebranch network now covers 26 States and 4 Union Territories.

The Bank plans to open 10 outlets and 25 ATMs/CRMs during the financial year 2021-22.Bank has also initiated steps to open currency chests at Kakkanad & Kannur.


During the FY 2020-21 the Bank has introduced a bouquet of new loan products toprovide focused thrust on Gold MSME and Agricultural Sectors. SIB Start (which supportsnewly formed business enterprises) Agri Produce Loan (post-harvest funding to farmersagainst hypothecation of agricultural produce) are classic examples. The year opened withvarious proactive measures/guidelines/products to handhold the borrowers who were ailingbecause of the economic disruptions due to pandemic which included additional workingcapital financing reduction in margin and providing moratorium on repayments. Wesuccessfully implemented ECLGS 1.0 & 2.0. We have also launched "PM SVANidhiLoans" to support livelihoods of street vendors during COVID-19 pandemic.


The FY 2020-21 began with the global economy in near standstill due to lockdownsimposed to restrict the spread of Covid-19. Governments and central banks responded in warmode with several measures – both conventional and unconventional. In India too theRBI undertook several measures to further improve liquidity monetary transmission andcredit flow to the economy and augmented the fiscal measures announced by the Government.Spurred by these measures easing of lockdowns and successes in vaccine trials economicactivity rebound in Q3. However the renewed jump in COVID-19 infections throughout thecountry and the associated localised lockdowns may restrain growth impulses and prolongthe return to normalcy. Rising international commodity prices especially that of crudeoil poses upside risk to inflation. Despite the tumultuous economic conditions thefinancial markets have remained buoyant supported by easy monetary conditions andabundant liquidity. The Bank’s gross investment portfolio stood at Rs.21180.46 croreas on March 31 2021 compared to Rs.21386.98 crore as on March 31 2020 reported adecrease of 0.97%. Investment Deposit ratio moved to 25.70 as on March 31 2021 from 25.80as on March 31 2020. Profit on sale of investment for FY 2020-21 stood at Rs.419.54crore. Total interest income from investment for the year was Rs.1309.01 crore. Yield oninvestments (profit + interest earned to average investments) during FY 2020-21 was 7.87%.

During the year the fixed income instruments trading desk the equity trading deskand the forex trading desk in Treasury Department have all managed their portfolios wellwith data-backed analysis. The SLR trading desk also planned and executed the Bank’sparticipation in ‘operations twists’ and open market operations (OMOs) besidesmanaging the held-to-maturity (HTM) book. The equity trading desk took well thought outpositions in the secondary market and participated actively in the various primary marketofferings too. The forex trading desk too contributed actively to overall profits bytaking gainful trading positions.

System liquidity remained in large surplus throughout the last year. The FundManagement and Money Markets Desks at Treasury Department successfully managed theliquidity risk by maintaining appropriate levels of surplus funds. The desk also ensuredcompliance with the regulatory requirements for Cash Reserve Ratio (CRR) and StatutoryLiquidity Ratio (SLR). Besides the above the Forex Merchant Desk in Treasury Departmentoffers to the Bank’s customers solutions for foreign exchange risk hedging andremittance related services. A significant portion of the total Treasury profits for FY2020-21 came from Forex Merchant activities. Going forward Treasury Department intends tofocus on Forex Merchant business and other similar offerings to customers for diversifyingits revenue mix.

The Treasury Department was able to operate continuously and without interruptionsduring the year even during the lockdown which demonstrates the resilience of the riskmanagement systems and processes in place.


During the FY 2020-21 as a result of focused and sustained efforts irrespective ofCOVID 19 barriers through prompt and effective measures under the SARFAESI Act follow upof recovery cases pending before DRTs and Civil Courts one-time compromise settlements ofaccounts the Bank could recover Rs.689.52 crores in NPA accounts surpassing the annualrecovery target of Rs.600 Crores. Special thrust was given to selection and underwritingof credit effective due diligence and improvement in credit administration to ensureimprovement in the quality of assets.

During the financial year the Gross NPA of the Bank has increased from Rs.3261.77crores as on March 312020 to Rs.4143.24 crores as on March 31 2021 and Net NPA hasincreased from Rs.2150.78 crore as on March 31 2020 to Rs. 2734.52 crore as onMarch 31 2021. In terms of percentages the GNPA has increased from 4.98% as on March 312020 to 6.97% as on March 31 2021 and Net NPA has increased from 3.34% as on March 312020 to 4.71% as on March 31 2021. In spite of prompt and effective credit riskmanagement and recovery measures the fresh slippages of accounts from the corporatesector and retail sector due to the wide spread of COVID 19 Pandemic consequent lockdowns Government moratorium and court restrictions over recovery proceedings resulted inthe increase of gross NPAs and net NPAs. As a result of Bank’s strong focus onrecovery as well as the initiatives taken in underwriting credit and tracking earlywarning signals the future NPA level is expected to be moderate.


Digital and Technological innovations in the banking sector have changed the waybusiness needs to be conducted. It has introduced new business paradigms and isincreasingly playing a significant role in improving the services in the banking industry.With the use of technology there is an increased penetration productivity and efficiency.Digitalization and innovative technologies are creating unprecedented disruption in thebanking sector and the rate of change is accelerating. The digitization has been drivenprimarily by the growing use of smart phones and emerging technologies like ArtificialIntelligence (AI) and Machine Learning (ML). Moreover the increased comfort of accessingservices online in other areas has paved the way for banking solutions to offerdigital-only propositions not burdened by traditional methods of providing financialservices. The role of banking is redefined from a mere intermediary to service provider ofvarious financial services under one roof acting like a financial supermarket. The Bankhas grown with the effective use of the technology by realigning technology and businessto ensure better growth in present competitive environment. A great deal of emphasis isbeing placed by the Bank on digitizing core business processes reassessing organizationalstructures and harnessing internal talent for digital journey. The Bank has streamlinedits Information Technology organization structure by setting up Digital Banking Departmentand IT Operations Department. Digital Banking Department has been focusing on theinnovation improvement and implementation of major customer facing/business orientedprojects on the digital platforms viz. ATM Net Banking Mobile Banking and otheremerging technologies such as Block chain AI etc. IT Operations Department ensureshighest level of service & integrity of internal applications and infrastructuralsupport for a seamless growth of business operations. There is significant growth in theshare of digital transaction undertaken by customers to 89.85% during FY 2020-21. Adoptionof new technologies and embracing innovations has been one of the forefront policies ofthe Bank and its technology teams. Today the Bank has a robust technology framework whichcaters to all customer requirements and provides a quick turnaround time. The Bank isenriching its digital channels with lot of innovative and value-added services for bettercustomer experience.

Retail Customers:

The Bank offers the best in class technology services to cater the diverse requirementsof retail clientele. The technology stack includes well designed customer touch pointsand robust back end systems…

Full Fledged enterprise level systems

Internet Banking - Sibernet

Mobile Banking – Mirror +

All variants of VISA Mastercard&Rupay Debit Cards are offered

ATM Cash Recyclers (CRM) other Value added services

Call Centre Solution catering to customers 24/7

CRM solution providing 360degree view of customers

Business Process Management (BPM) to enable centralization

Technology backed Branch Infrastructure

Latest version of Core Banking Solution(CBS) form Infosys viz. Finacle 10

Enterprise Risk Management Solution

ATM network that spread across the country which supports Mastercard VISA and Rupaycards allowing customers quick access to money. All ATMs are interoperable.

Mobile Banking (with support for other bank money transfer through IMPS P2A P2M(issuer) USSD UPI and Bharat QR.

Missed call services for retrieving balance through SMS etc.

Online investment in primary and secondary markets offered to customers through ASBAe-trade and e-mutual fund modes.

Portfolio Investment Scheme for NRIs allowing them to invest in Indian equity market

IMPS Facility to Exchange Houses for Foreign Remittance

- For our international client exchange houses/banks we have introduced IMPS based fundtransfer on a 24*7 basis in addition to NEFT.

Fraud Risk Management (FRM)Solution for channel transactions

Kiosk based Financial Inclusion Solution to enable the Bank reach nook and corner ofthe country even in remote villages using technology enabled tools

Payment Options such as Automated Clearing House (NACH) Payment Service ChequeTruncation System(CTS) RTGS/ NEFT etc.

Account Opening for NRI/MSME directly through Bank’s website

Instant QR code payments at merchant locations using Bharat QR where Customers can usedebit card (VISA/ Mastercard/Rupay) as virtual card inside Mirror +

Introduction of Interoperable Cash Deposit (ICD) Machines to facilitate remittancethrough our recyclers to other bank accounts and vice versa

Enhancement in Security Operation Centre Operations

Data Centre and DR Enhancement/ initiatives [ DR Management Disk based Backup solutionat DC Net backup Migration at DC and DR Solaris OS Migration at DC &DR and DataCentre certification]

Automation of procurement and payments

Robotic Process Automation

Application Program Interface (API) banking

Artificial Intelligence based banking services such as Chatbots.

Central Plan Scheme Monitoring System (CPSMS) which links to the DBT (directbeneficiary transfer) for instant receipt of Govt. subsidies to the beneficiaries ofvarious Govt. schemes

Tab based Aadhaar e-KYC instant account opening for individual Savings Accounts

Quick account opening facility at branch level through e-KYC acceptance with reducedpaper involvement processing time and interdepartmental dependency.

Self on-boarding by opening SIB-Insta account through mobile devices using Aadhaar andPAN card.

Corporate Customers

Bank has Internet Banking facility from Infosys which provides all the workflowcapabilities required for each corporate. Moreover it offers the security of Digitalcertificate integration thereby balancing convenience with security

Bank also offers Host to Host Integration facility ("Hi- Hi Banking") whichwill handle fund transfer in a seamless fashion by real time interface with ERP solutionsof corporates. This facility is available for 365*24*7 and the clients can securely accessthe system from anywhere Supply Chain Management Solution caters to the dealer/ vendorfinancing requirement of corporates

Bank has started offering business debit cards to the business customers

On the business acquiring capabilities we have full suite of payment acquiringincluding POS terminals Bharat QR UPI QR etc. which gives the merchants a whole host ofaccepting payments instantly from their customers.

Integration through APIs for full-fledged automation done with several corporate andGovt. agencies.

Digital/Technology initiatives/solutions embarked during the year

Services/ solutions that the Bank has launched during the year

New Mirror+ application has been launched with new UI/ UX and new features.

Internet Banking Integration with Bill desk for Bharat Bill Payment System

Online option for Sovereign Gold Bond application and payment

Fastag reloading using Mirror+

Loan Credit through Mirror+

Limit Enhancement in Internet Banking for Retail Customers

Cheque book request through Internet banking

ATM card request through Internet banking

E-mandate authentication of NACH payments

Adding Email channel in Call Centre

To share passwords to Corporate SIBernet customers in PDF format

Debit Cards Cross Border Authorization Optimization and Activation

Tie-up with M/s Arihant Capital Markets Ltd for share Trading

New POS vendor Bijlipay added to our POS list

UI/UX Enhancement -The internet banking page is being redesigned to offer bettercustomer experience while transacting online.

FSLD Opening in Mirror+

Money bloom in Mirror+

E Academia and Fee payment integration in Mirror+

Enhancing security of Card transactions

NETC Missed call balance enquiry

Chatbot-Migration of Public Chatbot to new NLP platform

SIB Namaste-To introduce Virtual Booking System for branch visit appointment booking

Android POS added into our POS machine base

Our Banks POS machines are now enabled for NCMC card acceptance.

Recertification/Enabling ICD in CRM+ EMV enabling

MasterCard Tokenization SIB has enabled tokenized transaction processing for MasterCardtransactions with JioPay.

Automation of UPI POS email through RPA.

PC & FBP Statement to be available on Net Banking

Axiom SMS routing -Multiple vendors can be added for routing SMS thereby improvingSMS/OTP delivery process

Online FATCA update through Mirror +

RD Closure in Mirror+

Online Dispute Resolution (ODR) System for Digital Payments

Gold Loan renewal through channels

Outward remittance of funds in the form of foreign exchange by a person from India toa beneficiary outside

India using Internet banking.

Integrated POS - POS machines now enabled with additional payment options includingBharat QR and UPI

Master card online refund

Sourcing Gold Loan to a customer by Nearest Branch through Centralised Call Centre

Video-CIP – On board customers remotely by establishing the customer’sidentity.

CTS Positive Payment System implemented in CBS Internet Banking & Mirror +

Implemented RTGS 24*7 facility through digital channels.

Loan Moratorium & Exgratia payment of interest on interest to customers

Implemented Basic tracker module for handling newly introduced payment confirmationmessage in SWIFT

Implemented Treasury CCIL FX RETAIL application

New modules for Gold Loan Renewal/ Topup/ Enhancement/Takeover

CBS - Database up gradation

Aadhaar Encryption in CBS

Hunter - Fraud Risk Management Solution

Accelerator LOS Products

1. SME 0-2 cores

2. LOS-Agri Module

Introduced on-line tracking of inward remittances originated from exchange houses

Enhancement in INDAS

RAP Application and DB Migration

SIB Affection-New deposit product targeting senior citizens with add-on features

API Integration for GroFarms

Online FATCA upload

Automation of the COVENANT TRACKER for CS

Furnishing of TCS Certificate in Information Bank

Automated pay outs through ESB banking for LIC HFL

AEPS Tab Banking

DC Higher End switches

Network -Revamping of copper/fiber cabling with intelligent enabled solution at DC(server & network room)

Mobile Device Management

Work from Home

Centralized AMC Renewal

IT Service Management

Litigation Management system- Software for Credit

Recovery Dept to monitor legal proceedings once account turned NPA

Ethic- IS Audit Module

Early Warning Signal - Software for monitoring the health of accounts

Enhancement in INDAS

Major initiatives/solutions embarked during the year

New Mirror+ application has been launched with new UI/ UX and new features.

Online option for Sovereign Gold Bond application and payment

Limit Enhancement in Internet Banking for Retail


Adding Email channel in Call Centre

UI/UX Enhancement -The internet banking page is being redesigned to offer bettercustomer experience while transacting online.

Money bloom in Mirror+

Enhancing security of Card transactions

SIB Namaste-To introduce Virtual Booking System for branch visit appointment booking

Android POS added into our POS machine base

MasterCard Tokenization SIB has enabled tokenized transaction processing for MasterCardtransactions with JioPay.

Outward remittance of funds in the form of foreign exchange by a person from India toa beneficiary outside India using Internet banking.

Integrated POS - POS machines now enabled with additional payment optionsincluding Bharat

QR and UPI Video-CIP – On board customers remotely by establishing thecustomer’s identity.

Loan Moratorium & Exgratia payment of interest on interest to customers

Implemented RTGS 24*7 facility through digital channels.

CBS - Database up gradation

CTS Positive Payment System implemented in CBS Internet Banking & Mirror +

Litigation Management system- Software for Credit Recovery Dept to monitor legalproceedings once account turned NPA

Implemented Treasury CCIL FX RETAIL application

Awards and Certifications received on Technology front

The Bank has won various awards and accolades in the Financial Year 2020-21 also. Theseawards are a testimony of Bank’s strategy commitment and execution of variousdigital initiatives and has brought in an acclaim from both Customers and stakeholders.

IBA’s 16th Banking Technology Awards 2021 (among Small Banks) for thebelow categories:

a) Most innovative project - Winner

b) Best Use of IT & Data Analytics for business outcome - Winner

c) Best IT Risk Management & Cyber Security Initiatives - Winner

d) Best Technology Bank of the Year - Runner Up

The Bank is the winner of ‘Best Innovation in Banking Technology’ atFinnoviti Awards 2021 - by Banking Frontiers (in association with Deloitte)

The Bank is Runner-up in the category of ‘Digital Deposit in Private SectorBank’ instituted by ASSOCHAM National E-Summit & Awards Banking & FinancialLending Companies "Digital Financial Services: Response to Atmanirbhar Bharat"

IT Training

During the year many training programmes had been attended by the Bank’s officersin premier institutions such as IDRBT NIBM IBA UIDAI to keep themselves abreast withthe advancements in IT Information Security CRM Databases Operating SystemsVirtualization Network Mobile banking ITIL (IT Infrastructure Library) FoundationTraining etc.

Business Continuity planning

As per BCP Policy the Bank has already setup a full-fledged BCP location and DR siteat Bangalore which is ISO 27001:2003 certified. Also Bank has set up necessaryinfrastructure at Kalamaserry Ernakulam as a secondary BCP site. Planned BCP drills areconducted on regular basis from both the locations to ensure connectivity andfunctionality test of critical applications. The necessary infrastructure technology areadequate and people are trained enough to respond and act quickly to a BCP or disasterrecovery situation. BCP location is manned with adequate staff members who can handle theIT operations during disasters with the support of the primary IT team. Considering thepandemic situation arising due to Covid-19 various measures were implemented includingusage of laptops and arranging work from home for critical personnel with necessarysecurity policies. Meetings and conferences were changed to online mode by ensuringuninterrupted customer services round the clock. As per recommendations from BCPcommittee zero data loss replication methods are used for primary to DR synchronization.We have implemented 3 way replication also for most critical applications to achieve zeroRPO and better RTO. A testimony of Bank’s robust BCP program and preparation is thatduring the forecasted flood situation in 2019 the BCP operations were invoked and allcritical systems were switched to DR in a time bound manner without any hindrance tocustomers. Systems of the Bank worked at full potential capability without any disturbanceto the customers during the period. The BCP policy for information systems is alsoperiodically reviewed and updated with latest industry standards.

Information Security and Risk Management

As banks adopt sophisticated technology to roll-out the most effective bankingsolutions to customers they are increasingly exposed to technology risks. It is thereforeimperative for each Bank to work out appropriate IT risk management strategies to secureits most vital information assets and to ensure that related risk management systems andprocesses are strengthened for smooth and continuous banking operations.

• IT Departments including Data Centre DR Site & BCP site and CISO Office areISO 27001 certified for the implementation of Information Security Management System(ISMS). As a part of ISMS implementation the Bank has prepared IS Security Policy andrelated IT risk management procedures.

• The Bank also ensures that all cyber security requirements as perstatutory/regulatory guidelines and best industrial practices are implemented on prioritybasis.

• The Bank has a separate full time CISO Office for surveillance of the securityarchitecture/infrastructure and for coordinating security incident-response activities.The Bank has formulated Cyber Security Policy and Cyber Crisis Management Plan to provideguidance in addressing various cyber threat scenarios. The Bank has also identifiedvarious types of IT risks and the required preventive detective and corrective cybersecurity controls are being implemented/updated.

• The Bank has also ensured that Security Operation Centre (SOC) does 24*7surveillance and keeps itself regularly updated on the latest nature of cyber threats. TheBank is using Security Information and Event Management (SIEM) monitoring tool foridentifying monitoring recording and analysing security events or incidents within thereal-time IT environment.

• The Bank has put in place a number of security solutions to managecyber-attacks. As part of advanced security solutions the Bank has implementedAnti-Advanced Persistent Threat (APT) Solution Server Protection Solution NetworkProtection Solution other advanced security solution/services etc. to handle a variety ofthreats and malicious attacks.

• Employees are updated with the latest security threats and the best securitypractices. In order to ensure continuous awareness on best cyber security practices andcyber security risks a dedicated internal web portal to disseminate relevant securityinformation has been set up and it is accessible to all employees.

• The Bank provides cyber security awareness to its customers on a continuousbasis through various channels like SMS/ Email/Website/Social media etc.

• The Bank is also committed to Data Privacy of customers employeesstakeholders etc and is undertaking initiatives to further enhance and improve its DataPrivacy posture.

Gopalakrishna Committee recommendations management philosophy & measures for theeffective implementation of Cyber Security Framework

• Effective measures have been taken to address the identified gaps in each areasuch as IT Governance Information Security IT Service outsourcing IS Audit ITOperations Cyber Frauds Business Continuity Plan (BCP)

Customer Education and Legal issues. Information Security policy is revampedincorporating various guidelines and stipulations mentioned in regulatory framework/guidelines/other best practices. In addition other IT Policies such as IT OperationPolicy and IT Governance Policy are also enforced.

• IT Strategy Committee of the Board IT Steering Committee and InformationSecurity Committee are in place. Cyber security preparedness of the Bank is reviewed byInformation Security Committee IT Strategy Committee of Board and Board of Directors on aquarterly basis.


The Business Operations Group (BOG) is set up to centralize and to streamline variousoperations which were happening at branches/sales/product making them free from thoseoperational activities. This helps to empower the sales/ branches to focus and garner morebusiness improving the top line as well as bottom line of the Bank. BOG undertakes thefollowing functional operations in a centralized environment with a view to bringstandardization of processes and procedures scalability in line with business expansioncompliance with regulatory and statutory requirements enforcement of internal controlsbesides expeditious service to the customers. To ensure business continuity BOG isoperational from three locations Ernakulam-Kerala Chennai-Tamilnadu &Bangalore-Karnataka. The operational activity is a hybrid of in house and outsource andmultiple vendors are employed for outsourced operations to avoid single point of failurewherever applicable.

The operations are governed by underlining SLA and TAT through vivid dissemination ofJob role and Job description for operating/supervising staff. Productivity and FTR (FirstTime Right) are the metrics used to measure the efficacy of daily operations. Training isdone on continuous manner for improvement in the operation in tandem with changemanagement both in resources and processes.


The operational activities include relationship and servicing which covers thefollowing:

1. Loan Login Acceptance and Data Entry (Retail)

2. Pre Sanction Mandatory Checking of all specified conditions (Retail)

3. Post Sanction Documentation (Retail)

4. Post Sanction Compliance (Retail)

5. Loan Opening (All loans)

6. Loan Disbursement (All loans)

7. Post Disbursement Compliance (Retail)

8. Document/Record Preservation (All loans)


The operational activities include relationship and servicing which covers thefollowing:

1. Centralized CASA Opening:

a. SB & CD – Individual and Legal Entity


c. PIS (Portfolio Investment Service) & Accounts Customer Modifications

d. Accounts Customer Modifications including Dormant Activation and Unfreezing CentralKYC (C-KYC)

e. Central Periodic KYC Up-dations

f. Central KYC (C-KYC)

g. Digital Account Openings (DiyaInstaTab) and recently Video KYC.

2. Payment & Settlement Operations


b. CTS Operations

c. PFMS - Aadhar Mapping WPS & DBT

d. NACH Operations

3. Aadhar Enrolment Operations


The operational activities presently centralized at TFCPC covers the following areas:

1. Inward and Outward Remittances

2. Export Bill Operations and Post Shipment Finance

3. Import Bill Operations

4. SWIFT Operations

5. Issuance of LC and BG (Forex and Domestic)

6. Other Forex Operations (Foreign Cheques Vostro Money Transfer Services FCNRDeposits etc)

7. Supply Chain Finance and TReDS


Reconciliation and digital channel support operations covers the following areas:

1. Debit Card Internet Banking & Mobile Banking (IMPS) operations

2. Post Open Welcome Kit (POWK)

3. Reconciliation – Debit Card (ATM/POS) Internet Banking & E CommerceMobile Banking (IMPS) UPI BBPS NETC Prepaid Card Reconciliation – ICD

4. Customer Dispute Management Function Harmonization of TAT (Failed Transaction)Managing Unauthorized Electronic Transactions

5. Managed Service – ATM Cash


The Bank has institutionalized a strong compliance culture and mechanism across theorganization in pursuit of its strategic goals of transparency and trust among all itsstakeholders. The Bank has a dedicated independent Compliance Department headed by a JointGeneral Manager which operates as per a well-documented compliance policy for ensuringregulatory compliance across all businesses and operations. The key functions of thedepartment include tracking of regulatory updates affecting various business verticals ofthe Bank dissemination of regulatory updates to functional units monitoring of timelyimplementation of regulatory instructions review of processes from a regulatorycompliance perspective providing guidance on compliance-related matters impartingtraining to employees on compliance aspects among others. The Bank has a well-defined andstructured mechanism to assess the compliance risk and monitor its mitigation measuresthereby ensuring the effectiveness of the compliance function in managing the compliancerisk. Compliance officials have been designated in all business units and departments formonitoring and mitigation of compliance risk. All the circulars of the Bank are madeavailable in electronic form. Bank’s policies guidelines and forms are also uploadedin software platform so as to empower the branches with readily accessible pool ofinformation/ guidelines.


Strategic planning is an organizational management activity used to set priorities tofocus energy and resources to strengthen operations and to ensure that employees andother stakeholders are working towards common goals. It helps the organisation to be morecompetitive in the market. Bank is committed to achieve its goals by focusing on the majorareas such as profitability asset quality resilient loan book robust retail liabilityportfolio appropriate organizational structure and latest digital technology. The briefaction plans & strategies to be implemented in the major focus areas are as follows:

Improving profitability by focusing on 6Cs

a) Capital: Beefing up the capital to strengthen financials expand market shareand to explore future growth opportunities.

b) CASA: Improving CASA through focused drive on building a sustainable CASAbook throug hour Pan India Presence.

c) Cost to Income: To bring down the Cost-to-Income ratio with focussedapproach on increasing the net interest income as well as other income portfolio of thebank and by optimizing the cost across the organisation.

d) Competency Building: Augmenting the talent of young resources &revampingthe organizational structure to build a pool of senior talent to deliver continuedexcellence.

e) Customer Focus: Customer experience is critical for the success of anyorganization as the same is a competitive differentiator. Adoption of a"phygital" approach at branches with personalized services for legacy loyalcustomers and end to end digital experience for next-gen customers with a "Fair tocustomer Fair to Bank" approach.

f) Compliance: Compliance continues to be the core for all strategies and willbe the axis across all domains of banking activities by adopting the motto"compliance with conscience".

Building Strong and Resilient Loan Book by focusing on:

a) Revamping Business Structure:Scaling up the sourcing capability throughvarious channels by forming separate vertical Structure for Asset business and creatingvalue from existing and prospective customers of the bank.

b) Strengthening the Team:

(i) Product experts to head each business and support verticals

(ii) Competency building & instilling sense of ownership and sensitivity

(iii) Data analytics team to play a critical role in business and collections.

c) Building Robust Infrastructure: Strengthening underwriting models andcollection system along with setting up of lending platform and leveraging technology toramp up business.

d) Launching new products: Revamp existing retail product suites of HL LAP PLCredit Card and adding multiple retail products like LAS IPO Funding Dealer Funding etc.with better delivery pricing and quality.

Building Robust Retail Liability Franchise by focusing on:

a) Revamping Branch Structure: Bringing in efficiency and effective control byconcentrating more on retail business with realignment of branch and regional network.

b) NRI Business: Building up a strong NRI deposit base by leveraging our Keralafranchise and exploring other parts of the country.

c) Higher Share of Customer Wallet: Focused drive to be the primary bank for allasset and liability customers with the help of data analytics for deeper customerpenetration with multiple product offerings.

d) Customer Segments :Diversifying the retail liability portfolio through segmentslike trust co-operative society Govt. business etc.


The Bank has a full-fledged Data Science department with the primary objective ofaccelerating and improving decision making with valuable insights optimizing internalbusiness processes enhancing operational efficiencies driving new revenues and gainingcompetitive advantage over business rivals and thereby achieving the pre-determinedcorporate goals in an engineered manner. Department has already rolled out severalBusiness Intelligent reports and descriptive analytical reports which gives meaningfulinsights to the top management for quicker and right decisions and thereby assisting inthe total Business growth for the bank. We have also implemented a few predictiveanalytical models for identifying the right customers to extend various asset productslike Digital Pre-Approved Personal loan Digital EMI loans targeted marketing Optimizingcash at ATMs etc. Data Science Department is also in the process of setting up a datawarehouse system for the bank after collating data from various source systems so thatBank this single centralized data repository shall be the single source of truth for thebank.


Risk is an integral part of banking business. In the recent past the Bank has exertedfocused efforts in building a robust and sustainable risk governance framework and tocreate the risk awareness culture across all tiers of the organization’s hierarchyand continuing to do so. In 2020-21 the Bank has leveraged on the earlier initiatives tofurther strengthen its existing policy framework and to realign them to the changingmarket dynamics. Various initiatives such as comprehensive review of Credit Risk Policyand other Risk Management Policies has been conducted along with other processimprovement. Liquidity is also actively being managed through the ALCO forum where theBank is pursuing actively into increasing the sticky and retail deposits along withoperationalizing majority of the wholesale banking financing relationships. As part of theBusiness Continuity Management the Bank’s Operational Risk team is working in closecoordination with various stakeholders to ensure smooth conduct of operations during thispandemic time. New Risk Management initiatives such as automation of Risk Assessment Modelfor Retail MSME and Corporate are under implementation. Risk Management underscores thefact that the survival of an organization depends heavily on its capabilities toanticipate and prepare for the change rather than just waiting for the change and react toit. The objective of risk management is not to prohibit or prevent risk taking activitybut to ensure that the risks are consciously taken with full knowledge purpose and clearunderstanding so that it can be measured and mitigated. The essential functions of riskmanagement are to identify measure and more importantly monitor the profile of the Bank.Managing risk is fundamental to banking and is the key to sustained profitability andstability. Management of risk aims to achieve best trade-off between risk and return andto maximise Risk Adjusted Return on Capital (RAROC). Sound risk management is critical toa bank’s success. Business and revenue growth have therefore to be aligned with Riskappetite in the context of the risks embedded in the Bank’s business strategy andbalance sheet. Of the various types of risks the Bank is exposed to the most importantare credit risk market risk and operational risk. The identification measurementmonitoring and mitigation of risks continue to be key focus areas for the Bank. The riskmanagement function attempts to anticipate vulnerabilities at the transaction level or atthe portfolio level through qualitative and quantitative examinations of the embeddedrisks. The risk management strategy of the Bank is based on a clear understanding ofvarious risks disciplined risk assessment risk measurement procedures and continuousmonitoring for mitigation. The policies and procedures established for this purpose arecontinuously evaluated and benchmarked against the best practices followed in theindustry. Through continuous refinement/improvement of the risk measurement/ managementsystems including automation of feasible processes the Bank aims to ensure regulatorycompliance as well as better return on and utilization of capital in line with thebusiness objectives

Risk Appetite

Risk appetite of the Bank refers to the level of risk that the banking organization isprepared to accept in pursuit of its financial and strategic objectives before action isdeemed necessary to reduce the risk. It is determined through the assessment of risktaking capabilities of the Bank in the form of sound risk mitigation techniques andcapital base. Risk Appetite forms a key input to the business and capital planning processby linking business strategy to risk appetite. Risk appetite of the Bank is defined by theBoard of Directors through the Risk Appetite Framework which encompasses the general riskappetite of the Bank as well as risk appetite with respect to specific categories ofrisks. Qualitative and quantitative measures risk tolerances as well as targeted limitsfor various categories of risks are included within the risk appetite and are monitored ona quarterly basis. The framework ensures that aggregate risk exposure of the Bank isalways within the desired risk bearing capacity. Further constant monitoring of suchlimit is done by Risk Management Department to ensure that activity of the stakeholders iswell within the Board approved limits.

Risk Management Policy Framework

The Bank has a comprehensive policy framework which contains separate policies foridentification measurement and management of all material risks including but not limitedto credit market operational liquidity and other Pillar-II risks. The Bank has put inplace an integrated risk management policy which ensures independence of the riskgovernance structure. The required standard operating procedures also follows the Policiesto ensure that all the parameters are well covered while implementing the approvedpolices. The details of risk management practices are provided in Management Discussionand Analysis Report annexed to the Director’s Report.

Covid-19: Operational Resilience and Business Impact.

An operationally resilient Bank is less prone to incur untimely lapses in itsoperations and losses from disruptions thus lessening incident impact on criticaloperations and related services functions and systems. While it may not be possible toavoid certain operational risks such as the ongoing pandemic Bank had taken variousproactive measures to absorb the impact of the major operational disruptions and continuedto maintain uninterrupted services during the period. As the pandemic progressed Our Bankrapidly adapted to the operational posture in response to both foreseen and unforeseendisruptions across the locations and functions. Bank had taken pragmatic flexibleapproach to operational resilience and enhanced the ability to withstand adapt andrecover from situation and thereby attempted to mitigate severe adverse impacts acrossfunctions. Few of the key initiatives taken as measure to improve our resilience arelisted below.

• Dynamic Quick Response Team (QRT) at Head office & Regional offices to takeproactive steps to ensure seamless operations.

• Invoked Business Continuity Plans (BCP) across critical functions and businessunits.

• Work-From-Home facilitated with adequate IT infrastructure and enhanced cybersecurity measures.

• Various HR related initiatives for ensuring safe and convenient workingenvironment.

• Contemporary Digital/ Technical initiatives for ensuring both customer andemployee convenience. Impact on Human Capital: Even through the pandemic iscreating significant disruptions to the economy businesses and the banking industrymeasures taken by Bank regulators and government agencies are subduing the impact on thebusiness. However the impact on human resources couldn’t be evaded. As on31.03.2021 1039 staff members were impacted with COVID which is 12.50 % of the totalemployees.

Keys measures taken: Bank has duly adhered to all COVID related protocols andguidelines issued by government agencies and other competent authorities for ensuring thesafety and wellness of staff members. Additionally following key initiatives/measureswere also taken to reduce the impact on human capital.

• Special leave for COVID affected staff and for quarantine purposes.

• Special COVID Allowance.

• Vaccination Allowance for staff and family members.

• Webinars on wellness and health by qualified consultants.

• Continuous and quick support on medical insurance claims.

• Special advance offered to needy employees for hospitalized COVID treatment.

• Flexibility in the working hours.

• Private transportation facilities in certain locations.

• Limited staff transfers

• Work flexibility offered to pregnant and employees with critical ailments.

• Campaigns encouraging digital transactions to reduce walk-in customers

• Improved technical infra-structure to reduce physical meetings.

During the lockdown the whole business community was under stress on business side andfinancial condition. Being a bank which stood with customers during their need withoutdiluting compliance the Bank is a front runner in implementing the schemes announced byGovt. of India and various State Governments. The Bank is among the first few banks toreschedule the repayment of term loans and to modify the working capital limits inaccordance with the moratorium announced by the RBI. The Bank has also implemented variousschemes for different sectors - Emergency Credit Line Guarantee Scheme to support MSME andother business community (ECLGS 1.0 & ECLGS 2.0) and PM SVANidhi to help streetvendors. Loan on-boarding norms have been re-looked and steps are taken to ensure creditquality. Scenario-based stress testing of the portfolio is undertaken and mitigationmeasures are put in place to improve the resilience of the portfolio.

In the light of COVID-19 outbreak based on the discussions in various forums includingStrategic Planning Committee (SPC) various committees of executives were constituted toensure smooth running of business asset quality and cost control. Based on thesuggestions from the committees various action points were formulated and conveyed todepartments of the Bank for necessary implementation. As part of cost reductionnecessitated by changed economic scenario due to Covid-19 pandemic all the Board memberssuo-moto decided to reduce the sitting fees for attending Board / committee meetings by20% till March 31 2021. The Chairman of the Bank has given up 100% of his sitting feessince lock down from March 2020 to July 2020 and 100% of honorarium from August 2020.

Bank has a fully equipped Treasury Dept to handle liquidity/ fund management of theBank which is overseen from a risk angle by Integrated Risk Management Dept. of the Bankas per RBI guidelines. With the present financial position and liquidity Bank is notforeseeing any liquidity crisis. Profitability is expected to improve in the currentfinancial year subject to restoration of normal economic activity and recovery fromCovid-19 Pandemic.

Bank has exhibited its self-resilient nature by early identification of potentialthreats failures and strategized recovery through adequate learnings from priordisruptive events in order to minimise the overall impact on the business. Bank has alwaysensured to stand committed to the customers and the larger community without anysignificant compromise to health and well-being of the Staff members. Far-sighted measuresand timely implementation of various HR and digital initiatives during this pandemic hastaken the organization one more step closer to the vision of being the most preferredBank.

Compliance with Basel III and Basel II Framework

In compliance with regulatory guidelines on Pillar I of Basel III norms Bank hascomputed capital charge for credit risk as per the Standardized Approach for market riskas per the Standardized Duration Method and for operational risk as per the BasicIndicator Approach. To address the issues of Pillar II the Bank has implemented ICAAP(Internal Capital Adequacy Assessment Process) to integrate capital planning withbudgetary planning and to capture residual risks which are not addressed in Pillar I likecredit concentration risk interest rate risk in the banking book liquidity riskearnings risk strategic risk reputation risk pension obligation risk etc. The Bank hasadopted a common framework for additional disclosures under Pillar III for adhering tomarket discipline norms of Basel II and Basel III guidelines. This requires the Bank todisclose its risk exposures risk assessment processes and its capital adequacy to themarket in a consistent and comprehensive manner.


The total forex business turnover for the year ended March 31 2021 was Rs.394350.31crore (comprising Merchant Turnover Rs.15693.27crore and Interbank TurnoverRs.378657.04 crore). The Bank has earned an exchange profit of Rs.46.63 crore for the FY2020-21 recording an increase of 11.05% as compared to the previous financial year. Atpresent the Bank is having rupee inward remittance arrangement with 3 banks and 35Exchange Houses and the turnover for the year ended March 31 2021 was Rs. 8540.16crore. The Bank has concluded speed remittance arrangement during the FY 2020-21 with thefollowing Exchange Houses:

• GCC Exchange UK Ltd

• Al Sadd Exchange Qatar

The Bank has continued to provide managerial support to M/s Hadi Express Exchange UAE.The Bank has presently deputed 10 officers of the Bank to manage the operations of HadiExpress Exchange. Considering the scope in improving the remittance business througharrangements with exchange houses the Bank has deputed 9 officers to UAE with UAEExchange Centre Al Ansari Exchange Al Ahalia Money Exchange Bureau Hadi ExpressExchange and Al Fardan Exchange 3 officers to Qatar with City Exchange Doha Qatar AlDar for Exchange Works and M/s AlFardan Exchange LLC Doha Qatar. The Bank has introduceda new feature in our Website "Exchange House Remittance Tracking System" whereinbeneficiary/remitter can track the status of funds remitted through Exchange Houses.

Bank has rolled out the new product "Online Foreign Outward remittance" inthe Net Banking platform (SIBERNET) for Resident SB & NRE SB clients. This will enablethe customers to initiate outward remittances via Online without visiting the branches.

The Bank has rolled out the CCIL FX Retail platform for its customers enabling them toaccess the market directly and book the Forex Deals thereof.


NRI segment plays a pivotal role in the total business of the Bank. NRI deposits of theBank constitute 31.4% of the Bank’s total deposits. The NRI customer base of the Bankis of 3.87 lakhs. In the current competitive banking scenario it is particularlyimportant to give individual attention towards the banking and investment needs of NRIcustomers by considering their geographical limitations.

The Bank is offering a host of banking products and services for its NRI clientele. TheBank offers exclusive Priority Banking Services with benefits and offerings- Prime andPrime Platinum to our Priority Banking customers who make their relationship mutuallyrewarding. In addition to Savings Accounts under NRE NRO category the Bank also offershigh return deposit schemes in Indian Rupees (NRE/NRO) and Foreign Currency (FCNR/RFC).Bank’s Representative office in Dubai is operational since April 25 2018 which isserving as a single point of contact for customers based at UAE. There are 12 NRRelationship Managers deputed in three different countries supporting our NRI clientele inUAE and Qatar. Ther Bank is giving Managerial Support to M/s. Hadi Express Exchange Housein UAE which is having 9 branches across various emirates in UAE.

The Bank also provides Portfolio Investment Scheme for its NRI customers. The Bank isauthorized by the RBI to administer the Portfolio Investment Scheme for NRIs for which theBank has an exclusive PIS Cell under Retail Banking Department. The Bank has tie-up withM/s Geojit Financial Services Ltd. For enabling NRIs to invest in shares and bonds ofcompanies listed on the stock exchanges.

The Bank provides a wide array of Third-party products like Mutual Fund Lifeinsurance Health Insurance National Pension Scheme and Demat facility to the NRIClientele. Customers can avail the online banking facility e-invest to open/invest/redeemin Mutual Funds. PFRDA a statutory body established by Govt. of India has designated theBank as POP agent authorized to collect and invest in National Pension Scheme.

Technology enabled hand held devices are the future of banking. In this age of digitalbanking the Bank has a great focus in pushing technology products such as mobile bankingapplication ‘SIB Mirror +’ to the NRI customers. This Mobile App offers the mostconvenient and secure options for banking and non-banking needs. The e-lock facility keepsthe account locked from fraudulent online transactions. This Mobile app brings banking tothe finger tips and allows to transfer funds invest make bill payments do onlinepayments and apply for additional services like opening of Fixed Deposit and RecurringDeposit through online. Loans against Fixed Deposit can be availed online through thisplatform.

The Bank has 18 Dedicated Relationship Managers at all Regional Offices under the roleNR RM’s. These officers render support and assistance to NRI and Priority customersat the branch as well as at the regional levels. The Branch level NRI Desk is managed byspecific NR Relationship Officers who give special care and attention to NRI clientele inmajor NRI Business Branches.

Bank is targeting to increase NRI business by three times in next five years. Thestrategy has already started taking shape with the NR RMs and NR RSMs being put in place.Special thrust is being given to outside Kerala regions to garner more business. Alreadytwo new exchange houses have been added this year and others are in pipeline. Globalpresence will be ensured with revival of existing tie-ups and new additions of exchangehouses across the globe.


The Bank accords utmost importance to enhancement of skills of staff members. TrainingProgrammes are conducted at SIB Staff Training College (SIBSTC) Thrissur and at 7Regional Training Centres (RTCs) for development of professional skills. Trainingprogrammes are designed to develop competency of operating personnel while imbibing theSIBIAN’s spirit and culture through an effective learning process. The success ofthese programmes reflects on the enhanced organizational productivity. SIBSTC and the RTCsidentify skill gaps in the personnel and provide support for qualitative improvement.Staff members are also nominated to external training centres for being trained inspecialized areas as well as to have higher exposure. During the financial year 2020-21the Bank has imparted training to 3834 officers and 1640 clerks in various aspects ofbanking operations. A total of 5484 staff members were trained during the FY 2020-21which is about 66% of total staff strength of 8314 as on March 31 2021. This is inconsonance with the Bank’s priority of continuous upgradation of skills to ensurethat the staff members meet the rising expectations of customers and discharge servicesprofessionally covering the entire gamut of banking operations. In addition to thistrainings have also been imparted to 106 Financial Literacy Centres/ BusinessCorrespondents for better rural banking services and as a measure of expanding financialinclusion initiatives of the bank.


The Retail Banking Department focuses primarily on increasing retail business for theBank through customer acquisition and retention. The Retail Banking Department has twoverticals

- Retail Liabilities and Retail Assets. The Liability vertical constitutes the entireretail liability portfolio of the Bank including Core Deposits CASA NRI BusinessMarketing of Third Party and Digital Products. Apart from the above the department alsoplays a vital role in ensuring continuous product development and promotion by creatingawareness on products through customer-centric campaigns.

Technology Products & services of the Bank

With more customers on boarding to digital channels every day Digital technology isrevolutionizing traditional banking. Introduction of UPI has boosted the payment ecosystemby simplifying contact less and real time payments. The Bank is a frontrunner in adaptingthe changes in technology by strengthening the digital banking space. The Bank haseffectively leveraged technology and introduced several variants of traditional productsand new e-based services tailor-made to suit the diversified needs of customers.Technology services like Contactless Debit cards Internet banking Mobile banking withUPI QR based payment acceptance and API Banking have transformed the customers’digital banking experience from branch banking to anytime anywhere banking. The Bank hasa separate Digital Marketing Division under Retail Banking Department to enhance theDigital outreach and a separate Digital Banking Department that facilitates Technological

SIB Mirror+

SIB Mirror+ offers Next Generation Digital Banking Experience from South Indian Bank- Acomprehensive and secure Mobile Banking platform offering 100+ banking and utilityservices to take care of daily banking needs conveniently from your smartphone.

Now do much more with SIB Mirror+

• Single App for Domestic & NRI customers available in 8 Regional Languageapart from English

• SIB NAMASTE Appointment Booking channel

• Invest in Sovereign Gold Bond Contribute towards NPS


• Digital e-Lock with e- Limit facility

• Self-Account opening (SIB Video KYC/ SIB INSTA)

• Link Multiple Profiles for Personal & Business Use

• Grievance Module

• Investment Module & Apply for Loans Module

• Deposit & Debit Card Management

• Utility Bill Payment & Mobile/ DTH Recharge

• Stop Cheque Payment Cheque status enquiry and much more.


The Internet Banking service under the brand name "SIBerNet" positioned theBank as a technology-driven Bank offering superior banking services to both Retail andCorporate customers. Customers can avail banking services and e-commerce transactions 24/7from home office or anywhere.

Types of SIBerNet

Internet Banking (SIBerNet) is available in two modes:

1. SIBerNet Personal: All retail including proprietorship can apply for SIBerNetPersonal.

2. SIBerNet Corporate: All Partnerships Trust Institutions Society Companies etc.can apply for SIBerNet Corporate

Services/ Features of SIBerNet

• Instant Payee Activation

• Foreign Outward Remittance

• Online Demat Account Opening

• Gold Loan Renewal

• ositive Pay System

• Password on Email for Corporates

• Personalized Transaction Limit

• Loan Account Credit Facility

• Debit Card Module

• Cheque Book Request

• SPOT Credit – Pre-Approved Loan

• School/College Fee Payments

• KSFE NRE Chit Enrolment

• Sovereign Gold Bond Application

• Positive Pay System Module Available

• Deposit Management Module is available

Debit Cards

South Indian Bank offers Debit card for domestic as well as international transactions.The card comes to you with features of Global acceptance Online Shopping Utility billpayments and Cash withdrawal from ATMs in India and millions of ATMs across the world.

For domestic as well as International transactions as per RBI mandate SIB offersDebit card to the customers in EMV CHIP and PIN enabled platform. This card can be usedfor cash withdrawals from ATMs displaying the VISA/MASTERCARD/ RUPAY/DINERS/DISCOVER logoacross the World in addition to our own South Indian Bank ATMs. The customers can also usethis card for making purchases from all merchant outlets globally accepting VISA/MASTERCARD/ RUPAY/ DINERS/ DISCOVER debit cards and earn points with the SIB Rewardzprogram. The accumulated points can be redeemed at more than thousands of retailoutlets and online shopping websites or for exciting gifts.

SIB’s EMV CHIP and PIN enabled debit cards are offered in VISA/MasterCard/RuPayplatform with enhanced transaction limits at ATM/Online/POS as given below:

SIB Rewardz

South Indian Bank presents SIB Rewardz a loyalty program for all our valued customers.Now customers earn SIB Reward Points every time they use their South Indian Bank DebitCard at Point of Sale terminals or online for purchases payments and bookings. As a SouthIndian Bank customer they are auto-enrolled in this program and as a special gesturewill be rewarded with SIB Reward Points for making payments by using their South IndianBank Debit Card.

Travel Card

Launched in association with Thomas Cook is specifically designed for customers whotravel abroad. It eliminates the need of carrying multiple currencies and makes thejourney hassle-free and convenient while abroad. Travel Card is available in two variants– (1) Borderless prepaid card enables the travellers to load 10 different currenciesin a single card (USD GBPEURAUDCHFJPYCADSGDTHB and AED) (2) One currency card canbe loaded in USD and can be used without cross conversion fee to make payments whiletravelling to multiple countries.

South Indian Bank Prepaid Gift cards

Prepaid cards or pre-loaded cards are those which can be used similar to Debit cardsfor Online/POS transactions. SIB Gift Cards are one-time cards issued in value as per thechoice of the customer for a finite period. These cards can be gifted to a third party andcan be used for multiple purchases for as long as value remains on the card and before thecard expires. However cash withdrawals from ATMs are not possible using SIB Gift Cardsand these cards cannot be reloaded.

South Indian Bank Reloadable Prepaid Cards

South Indian Bank presents Reloadable Prepaid Cards in RuPay platform. ReloadablePrepaid Cards can be used for POS/E-commerce as well as for ATM transactions. PrepaidCards can be reloaded umpteen number of times as per the choice of the customer. Twocategories of Reloadable Prepaid cards are available:

• CashCard which is offered to retail customers can be loaded to a maximum amountupto Rs.100000/-

• DigiCash is offered to corporate customers for onward issuance to theiremployees customers etc...These cards can be loaded to a maximum amount upto Rs.50000/-


NETC FASTag is a project from National Highways Authority of India (NHAI) and theIndian Highways Management Company Ltd (IHMCL) in association with National PaymentsCorporation of India (NPCI). Through this system any vehicle with a FASTag (RFID) tag caneasily to cruise through the Toll gates without making any cash payments. NETC FASTags arePreloaded RFID Tags for making the Toll Payments electronically. When the Vehicle passesthrough the Toll gate The RFID reader at the Toll plaza receives information about thevehicle and the Toll amount is deducted automatically from the FASTag thus saving timeand fuel. We have introduced Missed Call Balance Enquiry Mechanism to know the FASTagbalance and also FASTag Recharge facility through SIB Mirror+ for SIB customers.

Point of Sale (POS)

The Bank is offering three types of POS terminals - PSTN (wired terminal) GPRS(wireless) and GPRS Paperless terminal (wireless) in association with M/s. Atos WorldlineIndia Pvt. Ltd. the market leader in India in this segment. We also introduced AndroidPOS terminal by December 2020 and have also entered into tie up with M/s SkilworthTechnologies (Bijlipay) for POS sourcing under referral model from June 2020.

SiberMart :The Bank has introduced an online shopping portal that enables customerto compare prices between different market places like Amazon Flipkart Tatacliq etc.This gives an added advantage to the customer in ensuring the Best Buy. Flight booking wasalso added to SiberMart which compares the prices of flight tickets in travel portals likeclear trip and yatra. Payment Gateway: Internet Payment Gateway (IPG) serviceprovides a platform for the online transaction between a shopper/client and amerchant/institution. The infrastructure allows institution/merchant to accept paymentthrough Debit card Credit card Internet Banking UPI Wallets etc against thegoods/services provided online. The facility is provided basically as a link in thewebsite of the merchant /Institution. There are value added services like SMS invoicingemail invoicing Payment links etc bundled along with Payment Gateway. At present we arehaving tie up with 2 vendors to provide the Payment Gateway services. M/s Worldline IndiaPvt Ltd. (Banks own PG Cards acquiring in hosted model) and M/s Razorpay Software Pvt Ltd.(In referral Model)

Feebook: FeeBook is an event based fund management/ collection portalwhich can be customized by the organization/ merchant according to the collectionrequirements. FeeBook comes with the tagline ‘YOU DECIDE YOU COLLECT’. In FeeBook the organization has the flexibility of deciding & customizing the entirecollection cycle. This can be integrated to the existing Website of the Client or can beprovided as a separate payment link with branding of the institution. Feebook is backed bybanks payment gateway services and can be offered to different merchant categories tohandle the online collection requirements.

e-Academia: e –academia is an customised FEE collection portal whichcan be offered to educational institutions. The portal is customised so as to handle thecomplex Fee collection requirements of educational institutions and will act as a totalfee collection solution to institution. E-academia is a backed by our payment gatewaysolution.

Hi – Hi Banking :South Indian Bank is offering a Host-to-Host channel forseamless and secure bulk payment facility to our corporate institutions enterprises. Itis aimed at providing a highly secure platform for paying employee salary vendor /supplier payments or any payments from your system without depending on Bank branches.Hi-Hi Banking is a corporate bulk payment solution that enables corporates to process Bulkfund transfer through their system. The payment can be processed and report can beobtained at your convenience.

API Banking: - South Indian Bank offers a host of banking API services spreadacross Accounts & Deposits Payments Gateways Trade services & BusinessBanking.It is a tool by whichcorporates can customise their business needs and gain easyaccess ensuring complete safety & enhanced efficiency. It involves access to coresystem of the bank and customise their financial needs.

Third Party Products

Insurance: The Bank has tied-up with the following partners for solicitinginsurance under the corporate agency model.

Life Insurance

• LIC of India

• SBI Life Insurance Co. Ltd.

• Kotak Mahindra Life Insurance Co. Ltd.

Health Insurance

• Max Bupa Health Insurance Co. Ltd.

• Manipal Cigna Health Insurance Co. Ltd.

General Insurance

• Bajaj Allianz General Insurance Co. Ltd.

• New India Assurance Co. Ltd.

• Bharti AXA General Insurance Co. Ltd.

The bank had a very fruitful year with respect to Insurance. We were able to growsignificantly in spite of the adverse market condition that prevailed secondary to thepandemic. The Income from Life General and Health Insurances stood at 1956.13 lacs380.52 lacs and 228.88 lacs respectively. The performance propelled the YOY growth to 24%.The total premium generated grew by 29% (life & non-life combined) YOY which iscommendable considering the fact the market on the whole only grew by 4%. (life &non-life combined) The Contribution of Income from insurance towards the total TPP incomestood at 90% as well. The Insurance cell in association with the mobile banking team hasalso incorporated lead generation touch points on the mobile banking platform as well forthe benefit of our customers.

We gave also Gone live with an end to end integrated online pitching module for HealthInsurance. (Manipal Cigna)

Mutual Funds:Mutual Fund is a popular form of investment since it provides theadvantages of professional portfolio management and dividend reinvestment. The Bank hastied-up with 17 leading Mutual Fund companies thereby offering a variety of mutual fundproducts to the customers. Asset Under Management (AUM) of the bank is Rs.210 crore as onMarch 31 2021. With the aim of increasing the mutual fund business and thereby increasingthird party income the Bank has launched an online mutual fund platform ‘SIBE-Invest’ to facilitate online purchase and sale of mutual funds. SIB E investPlatform is currently live in SIB Mirror+ and in SIBer Net which made Mutual Fundinvestments of our customers very easy. With the launch of app version of Mutual Fundplatform last FY (in Mirror +) the transaction volume has tripled and this will boost ourmutual Fund business going forward. The platform is also live in Branches where a branchcan initiate mutual fund investment online after getting customers authorisation. We havealso conducted Webinars for our customers on "Wealth Management" and"Investment During Uncertain Times" which helped many of our customers to makea better investment decision during the pandemic period.

Bonds: The Bank has been enrolled as a Channel Partner for the distribution ofbonds issued by different companies through Bank’s tie up with IFIN - a subsidiaryof IFCI (Industrial Financial Corporation of India) Financial services Limited. Throughthis tie up the Bank has been enrolled as a channel partner of IFCI for the distributionof capital gain bonds and tax free bonds Depository services: The Bank offersDepository services for the benefit of its customers. Through this facility customers canhold their securities in electronic form in demat account with M/s Central DepositoryServices (India) Ltd. (CDSL). For e-trading the Bank offers SIBerTrade – the onlinetrading facility to buy /sell stocks for its domestic customers from stock exchanges inIndia through tie-up with M/s. Geojit Financial Services Ltd. M/s. Religare SecuritiesLtd. & M/s IIFL Securities Ltd. Customers are also having the option of tradingthrough mobile application at their comfort zone where the Demat Account and Bank accountwill be with us and the trading account will be with one of our Broking partners.

ASBA: SEBI has also registered the Bank as Self Certified Syndicate Bank (SCSB)for accepting application under Application Supported by Blocked Amount (ASBA) through allthe branches of the Bank. ASBA enables the Bank’s customers to apply for IPO/FPORights issue etc. by marking a lien on the account instead of actual debit at the time ofapplying which is more beneficial for the customers. We have participated in 81 issues(including IPO/FPO/NCD/Rights Issue) in FY 20-21. SGB: Sovereign Gold Bond isexpected to provide an alternative and attractive investment option to retail individuals.Investors can apply Sovereign Gold Bond sponsored by Govt. of India through SIB Digitaland Offline platform. Digital platform for applying SGB is introduced in the year 2020. Wehave participated in all the 12 Tranches of SGB 2020-21 series and collected 925applications of a total investment of 13.39cr.

(PIS) – An extensive share trading facility for our NRI customers throughtie-up with M/s. Geojit. Under PIS NRI customers can directly invest in the Indiansecurities market through recognized stock exchanges under repatriable/non-repatriablebasis.

Achievement (Nos) as on 31.03.2021

Cumulative PIS accounts No: 2000
PIS opened as on 31/03/2021 310
Income generated as on 31/03/2021 Rs. 20.78 L

The National Pension System (NPS): The Government of India has introduced theNational Pension System (NPS) on 01.01.2004 (except for armed forces). NPS was madeavailable to All Citizens of India from 01.05. 2009.Our Bank is appointed as a Point ofPresence (POP) since then and all our branches are authorized to extend the product andservices of NPS. Recently Government of India has announced the increase of tax exemptionlimit for NPS to 60%. This has effectively made NPS tax free at maturity and an effective‘EEE’ status is attained i.e. Tax Exempt at Entry Earning and Exit stages. NPSis a very appealing product for NRIs and in fact our bank is the topper among thepeer-banks and Kerala based banks for both resident and NRI NPS. Only NPS offers theadditional tax benefits up to Rs.50000/- under I.T act 80 CCD(1B) and it is over andabove Rs.1.50 lakh of 80C investments. APY was introduced by Govt. of India in place ofNPS Lite providing minimum assured pension from Rs.1000/- to Rs.5000/- to subscribers isalso available to Bank’s customers.

Cumulative Achievement (Nos) as on 31.03.2021

NPS – All Citizen Model 11011
NPS Corporate (Including Staff) 7662
APY 31327
Total 50000

SIB E-Pay: In association with BSNL the Bank is facilitating the payment of BSNLLandline bill of its customers through their accounts maintained with the branches. Acustomer can avail this facility by submitting a mandate form at the branch where theaccount is being maintained. Once registered the BSNL landline bill of the customer willbe automatically debited from the customer’s account every month. The key feature ofthis facility is that it is totally hassle free and is offered free of cost to thecustomers.

Cash Management service (Premium Collection): The Bank is offering Cash ManagementService (Premium Collection) to customers in association with Exide Life Insurance Co. Ltd(formerly known as ING Vysya) and ICICI Prudential Life Insurance Co. Ltd. Under thisarrangement Bank’s customers as well as walk-in customers can remit life insurancepremium through branch counters. This facility is offered free of cost to customers.

Centralized Direct Debit service: Centralized direct debit facility is a serviceoffered by the Bank to the customers through which monthly/quarterly/half yearly paymentsof Mutual Fund SIP investments/Loan EMIs (Vehicle/Equipment Loans)/insurance premium canbe made directly by debiting their account and thereby making payments to various billers/institutions. At present the Bank has tie up with 5 vendors for the Centralized DirectDebit facility which includes M/s India Ltd. M/s TVS Credit Services Ltd. M/sSundaram Finance Ltd. M/s Shriram City Union Finance Ltd. and M/s Bajaj Finance Ltd.

Customer Experience Group (CEG)

Subsequent to the setup of Customer Experience Group in the Bank all leads generatedfrom various sources provided were being engaged and followed up by CEG team till the endof lead life cycle. Mirror+ activation conversion of new accounts and debit card usageactivation and lead generation are the major activities undertaken by the CEG team.Customer Experience Group has three sections namely Inbound Outbound call centre andDigital Quick Support Team (DQST). DQST working on customer mails and Branch support ondigital products.

CEG inbound team is the touch point for customers on all banking needs via call.Inbound call centre provides 24x7 customer service on calls whereby customers call us andstate the nature of their problem. The front line analyst uses call centre software toidentify the customer and after collecting the required details responds to the problem.The goal of the CEG is to solve the problem to customer’s satisfaction. CEG inboundteam is required to follow procedures to facilitate moving problems to more advanced andexperienced back office teams when initial help levels cannot resolve them. DQST team isthe touch point for customers via mail Chat and Social Media. There are dedicatedresource to handle Ibanking and Mirror + service and complaints. DQST team managesCEG’s Complaint handling processes through various channels like Customer care mailsIbanking Mails Mobile Banking Emails IVR cases Ibanking grievances lodged throughMirror Plus app and Mobile banking grievances lodged through Mirror Plus app. Furtheroutbound team major responsibility is to onboard the customers with first point of serviceand sales of the bank’s products. Leads are created and managed in CRM for theinterested customers and same is forwarded to concern team for fulfillment. The ultimatevision of the team is to become a sales powerhouse of the Bank and develop the channel asa cost neutral unit in the coming years.


• Mirror+ activation conversion of new accounts is at 60% for FY 20-21.

• Debit card usage activation of new accounts 67% for FY 20-21.

• 16981 Leads generated through CEG in FY 20-21.

Liability CASA Initiatives

• The bank has launched SIB Video KYC account opening hassle-free mode of accountopening which enables customers to open their account fully online completing all KYCprocedures in a matter of minutes. KYC documents are verified signature and photographare captured in the process ensuring a full-fledged account.

• The Bank has launched SIB Insta Paperless digital account opening platform forsavings account customers. The number is delivered to the customers within five minutes.On remittance of Rs.1000/- debit cards are issued without issuance fee.

• As a part of better customer engagement and deepening the CASA relationshipportfolio’s has been mapped to individual staffs for contacting and increasing theproduct holding of the customer and thereby ensuring value build up.

• Branch level welcome calling process of NTB customers has been put in place toensure the customer has received the deliverables like ATM card net banking activationand mobile banking so as to ensure customer activation.

• IP value validation process has been implemented to ensure that the customeropens the account with required IP as per the product requirement so as to ensure qualityliability accounts are getting sourced.

• DIYA (Do it yourself with Aadhar) savings account opening process has beenimplemented to smoothen the customer onboarding process at branch level and migration ofsuch accounts from the traditional account opening methods.

• Corporate Salary Account product has been revamped by offering four variants ofthe product namely Premium Executive Smart and Basic product variants basis the nettakes home salary of the customer.

Government Business Division

Government Business Division (GBD) was institutionalised in the FY 2018-19 headed by aDGM to cater to the banking requirements of Central Government /State Governments/ PSUs/Boards/other Govt affiliates with a focus on canvassing and liasoning with variousGovernment institutions pan India. GBD aims at driving the Government Business portfolioof our Bank with special emphasis to boost up CASA. Branches ROs Cluster Heads &RSMs are the major acquisition channels to augment Govt Business segment.

Achievements and Milestones

• In the backdrop of the lifting of embargo on the grant of Government Businessincluding Govt Agency business to private sector Banks by GoI request letter has beensubmitted to Head- Treasuries Dept & to Finance Dept of all States in India for theintegration of our Bank CBS with the e-Treasury operations of GoK& our Bank is in theprocess of getting integrated with State Treasury &GoI

• Tie up with Chief Ministers Office (CMO) - Kerala for Chief Minister’sDistress Relief Fund (CMDRF) by providing a PG link in official website of M/s CMO &M/s CMDRF. Proposals submitted to M/s PMNRF M/s PMCARES and to CM Relief Fund of allStates in India.

• Selected by Govt. of Kerala as the Sole Banker for the Collection of ProfessionTax across all Municipalities in Kerala State by integrating our Payment Gateway. 2Municipal corporations (viz. Trivandrum and Thrissur Corporation) & 84 Municipalities(out of 87 Municipalities) are onboarded by our Bank for the Profession Tax Collection

• Banker to Kerala Forest & Wildlife Dept Government of Kerala for theinstallation of 100 POS machines for accepting collections from Eco tourism centersVanasree Shops Mobile Vanasree Units Eco- Shops etc. 100 POS machines to be installed atvarious locations under 36 Forest Development agencies (FDAs).

• Major Banker to the Kerala State Govt owned MNBC- M/s The Kerala State FinancialEnterprises Ltd (KSFE) & selected as one of the official Bankers for KSFE- KIIFBPravasi Chit Project.

• Banker to M/s KSEB M/s Kerala Motor Transport Workers Welfare Fund Board M/sMatsyafed M/s Kerala Financial Corporation M/s KMSCL M/s Regional Cancer Centre (RCC)& M/s Kerala State Backward Class Development Corporation (KSBCDC) M/s Kerala StatePharmacy Council (KSPC) Kerala Head Load Workers Welfare Board(KHLWWB) M/s Kerala NonResident Keralites Welfare Board M/s Kerala Toddy Workers Welfare Fund Board(KTWWFB) M/sKerala Agricultural Workers Welfare Fund Board (KAWWFB) & M/s The PharmaceuticalCorporation IM Kerala Ltd – Oushadhi for various collection & paymentarrangements

• Banker to Travancore Devaswom Board & Guruvayoor Devaswom Board in the Stateof Kerala

• Official Banker to M/s IRCTC for online booking of Railway tickets

• Official Banker to Rajasthan Payment Portal (RPP)- Government of Rajasthan forPayment Gateway & Disbursement arrangements

• Banker to Rajasthan Para Medical Council(RPMC) for various Collectionarrangements

• Empanelled by M/s Delhi Jal Board for API based VAN collection arrangement ofwater/sewer bills in Delhi

• Banker to M/s Karnataka Urban Water Supply & Drainage Board M/s KarnatakaNeeravari Nigam Limited M/s Bangalore Water Supply & Sewerage Board M/s KarnatakaState Minerals Corporation Ltd(KSMCL) M/s Centre for e-Governance & M/s KarnatakaState Beverages Corporation Ltd (KSBCL)

• Official Banker of MP Online - Govt of Madhya Pradesh for collection arrangementthrough Payment Gateway

Other Initiatives

• Pan India drive to onboard accounts of CM Relief Fund of all States

• Pan India drive for opening the accounts of LSGDs for receiving 15thFinance Commission funds through PFMS.

• Pan India drive for onboarding the SNA account all the States in India forreceiving Central Government grants of Central Sponsored Schemes (CSS) to receive CentralGovernment grants by offering Budget Management Solution

• Pan India drive to onboard all Electricity Boards and Water Authorities in Indiaby offering API based VAN

Priority Banking Service

South Indian Bank’s Prime Platinum and Prime are exclusive priority bankingprograms offered to the HNW clients of the bank to provide them with privilege bankingexperience. Under this program the customers have got the privilege of enjoying customizedbenefits with the Bank to suit their individual needs.

Customer in priority banking program enjoys red carpet treatment in all the branchesacross the country. We are envisaging to create a comprehensive Personal EconomyManagement Solution to maintain and diversify the customers’ wealth.

Presently we have 2 Lacs customers under the program with total saving account booksize of Rs.9900 crore and total term deposit ofRs. 23640 crore. During 2020-21 thefollowing initiatives were added to make the program more lucrative;

• Appealing webpage on Priority Banking Program in SIB website

• Recognition of priority customers on mobile platform Mirror Plus

• Attractive personalized cheque book for priority customers

• E-statement for priority customers

• Continuous e-meet via webinars for priority customers in collaboration withvarious channel partners Total 35000 customers joined the program during year 20-21 withan overall SB growth of Rs.750 crore in the year. Earnest efforts are being taken for ringfencing the customers by offering various banking products and attractive life styleofferings.

Visibility Enhancement Initiatives during FY 2020-21

The Bank had undertaken promotions in various media like Newspaper Television RadioOutdoor and digital media. However due to pandemic mass media promotions were lesser.Most campaigns focused on Digital and Social Media promotions that proved economical aswell as target delivered to the customers across the geography.

• Through effective PR strategy major events and financial results pertaining tothe Bank were promoted globally across all the media platforms. Exclusive interviews withNational print and visual media was arranged during the joining of new MD and CEO topositively engage the Market.

• Regular social media post of digital products SME loans and CASA products werepromoted through the official Social Media of SIB. Special days were also promoted toengage the customers with the brand. Digital platforms were best utilized during thepandemic period which encouraged contactless banking. ‘SIB Namasthe’ a facilityfor branch visit appointment was also promoted in digital platforms including website foroffering safe banking in branches.

• Press conference was organized in connection with the inauguration of ThrissurVadakkechira Bus Hub a prestigious CSR initiative by the Bank. Press releases were alsomade on the launch of products like SIB Insta raising of capital and other majordevelopments.

• Product promotions were made in Kochi-Kaloor where Bank had undertaken semi-naming branding project with Kochi Metro Rail Ltd (KMRL).

• Corporate advertisement ‘Bank on Us’ was promoted in nationalfinancial channels during union budget presentation.

• The Bank had promoted super-fast Gold Loan through FM stations in the mainbusiness centres across India in various phases

• The Bank had undertaken Online Portal Campaign with leading news sites in Keraladuring local body elections for promoting the Gold loan. This was also synchronized withPrint Media campaigns in major vernacular dailies

• The Bank had also associated in major cultural events outside its home stateTamilnadu SS International Live - Fusion Music Show "The Great Man’dolinTribute Show" etc. Also SIB partnered for Southern India Regional Council of theInstitute of Chartered Accountants of India (ICAI) - One Day CPE Seminar on Bank Audit andfor a seminar conducted by Xavier Institute of Management & Entrepreneurship.

• With a view to make our Bank’s presence felt in Middle East Bank hadassociated with Thrissur Association of Kuwait (TRASSK) Souvenir Launch of ATHIJEEVANAM2020.


In a dynamic world where an individual defines the organization Human Resource (HR) isthe most valuable asset. Achievement of an organization’s objectives depends on theindividual and the collective efforts of its workforce. Every employee is a vital factorfor the smooth functioning by bridging the gap between the customers and the organization.The Bank has team of highly motivated skilled committed loyal and empathetic staffmembers who strive to meet customer aspirations and organizational goals. A strategicapproach towards effective development and management of human resources is of paramountimportance. In order to augment the workforce in tune with the Bank’s sustainedgrowth and expanding network major initiatives towards talent acquisition and retentionhave been continued in the FY 2020-21 also.


As on March 31 2021 the Bank had 8314 personnel on its rolls. Cadre wise break up isas under:

OFFICERS 3210 1714 4924
CLERK 1262 1629 2891
PEON 262 20 282
PTS 53 164 217
GRAND TOTAL 4787 3527 8314

With the infusion of young personnel Bank was able to maintain the average age ofemployees as 33 years as on March 31 2021.

Staff Members having professional Qualification as on 31.03.2021 are as under:

Management 1418
Post-Graduation 1267
CA 58
CS 5
Engineering 1997
Legal 60
Total 4843
Total Staff as on March 31 2021 8314


Maintenance of staff records was streamlined under "HRMS" (Human ResourcesManagement System). The data can be accessed by all controlling offices and variousreports based on the data can be generated for the quick disposal of staff relatedmatters. To make HRMS more comprehensive and contemporary the User Interface of HRMS wasrevamped and more modules such as Deputation Staff Compliance Staff Welfare etc. wereadded and facility for availing Transfer Discomfort loan pension application collectionnew HR Assistant "MITHRA" FAQ section etc. were introduced. In addition therevamping of the Performance Appraisal System SIB Recruitment portal was also completed.These enhancements were in addition to the modules already available in the system such asTransfers Promotion Maintenance HRA Leave & LFC Training Service Record PensionMaintenance Marketing Excellence Staff Medical Insurance TA Staff AllowancesProvident Fund Staff Attendance Audit Compliance Staff Advances Increment MaintenanceNPS etc.

In the FY 2020-21 HRMS was upgraded with the addition of new workflows such asautomation of rent advance payment automation of LFC payment with subsequent reporting insalary automation of promotion designation change and automation of increment fitmentdigitisation of legal POA of officers NOC approval for other bank deposits and loansautomation of salary provision computation two punch attendance system as an alternativeto biometric fingerprint attendance automated personalised greetings from MD & CEO tostaff members on their birthdays etc. In addition new features such as daily quizfeature new payslip format with IT projection sheet option registration facility forretirees medical insurance memo module a dedicated allowance master facility forcontract staff members registration facility for SIBINAR facility for Award staff toclaim HRA customised bulk mail sending facility and value deck that introduces to staffmembers the core values of the Bank were also introduced. In addition system security wasimproved by way of introducing https separation of application and database layers andintegration of parameter changes staff status changes of HRMS with Bank’s SecurityOperations Centre SIEM tool.

Motivation Initiatives

Some of the initiatives undertaken by the Bank in order to boost the morale of the Bankemployees are as under:

a) Promotions: The Bank is offering ample opportunities to its employees for theirgrowth and progression During this financial year 212 clerical staff were promoted toScale I 150 Scale I officers to Scale II and 121 Scale II & above Officers to varioussenior cadres.

b) The Staff Welfare Study Support Scheme which was introduced in the FY 2016-17 forchildren of staff members has been successfully continued in the current financial yearalso. The scheme has proved to be effective in its implementation with the aim ofencouraging the children of staff members to soar greater heights.

c) This year 167 staff members availed the benefit of ‘The South Indian Bank StaffWelfare Scheme’ introduced in December 2008 for availing long leave with reason ofchild care after maternity higher education medical treatment and so on. The schemeensures the Bank’s employee friendly approach towards its employees and the concernfor their family members.

d) PLIS – Performance Linked Incentive Scheme is continued in this financial yearalso to ensure enhanced productivity and efficiency in all areas of operations and instillmotivation among all SIBians to achieve long term growth and profitability.

e) Employee Engagement Programme – SIBINAR was introduced where in webinars wereconducted on topics related to employee wellbeing motivation etc. It hosted eminentspeakers.

f) 9 core values were identified for the Bank and introduced value cards for employeesdepicting the same.

g) Wellness Leave was introduced as a staff welfare measure and with a view toachieving proper ‘Work life balance’ to improve the productivity of staffmembers.

h) With a view to provide support to our dedicated work force who are committed toprovide uninterrupted banking service across the country amidst severe challenges andrisks Bank has taken several initiatives including payment of an Additional allowancefor attendance in office reimbursement of COVID test expense a monetary benefit(one-time measure) in the form of a Special Allowance of Rs.6000/- to all staffmembers up to the cadre of Scale IV officers Vaccination allowance of Rs.500/- each tostaff and dependents etc. i) Our Bank had implemented the Group Loan Insurance Scheme(GLIS) GLIS covers the life of the staff members and also ensure the closure of loanoutstanding in the name of the staff member on death while in service so that the burdenwill not pass over to the family member. Policy has been renewed further for a period ofone year from 01.11.2020 to 31.10.2021 in tie up with SBI Life Insurance Co.

Industrial Relations

Industrial relations in the Bank has been cordial and harmonious. The representativesof Workmen Union Officers Association and Management have been working collectively witha sense of ownership for all-round growth and prosperity of the Bank and its employees. Onaccount of the cordial industrial relations with both the associations Bank has achievedconsiderable growth over the years.

A jovial and employee friendly approach by the Bank is the only reason to have a veryminimal attrition rate of 2.90%.


During the financial year 2008-09 the Bank instituted an Employee Stock Option Schemeto enable its employees to be a partner in the future growth and financial success of theBank. The Bank’s shareholders approved the plan on August 18 2008 for the issuanceof stock options to the employees. Till March 31 2021 55975774 stock options werevested out of which 28949199 stock options were exercised by eligible employees. Themoney realized due to exercise of the said options was Rs.427454572.64 and consequently28949199 shares of Re.1/- each have been allotted to the concerned employees/legalheirs.

A Certificate of Auditors pursuant to Regulation 13 of SEBI (Share Based EmployeeBenefits) Regulations 2014 will be placed to the AGM for the scrutiny of Shareholders.The total options granted under ten phases of SIB ESOS 2008 works out to 2.94% of thepaid-up share capital of the Bank as at March 31 2021. The scheme has generated intendedmotivation amongst the staff. There is no material change in the scheme during the FY2020-21 and the scheme is in compliance with the applicable regulations. The scheme wasmodified at the AGM held on September 29 2020 in line with the new regulations. Statutorydisclosures regarding details of the stock options granted vested exercised andforfeited and expired during the year under review is hosted on the website of the Bankand can be viewed at

SIB- Executive Brief

"SIB-Executive Brief" - a daily news update on Banking Finance EconomyIndustry Sports Market Rates etc. is compiled by SIBSTC. It is mailed on a daily basisto members of the Board Executives and is also made available at SIB-Insight for accessby the staff members. We have also included more information like yields on 10-yearG-Sec. AAA Corporate bond of 5 years 3 months CD & CP 3 months forward premium US10-year yield and Forex reserves.

E-Learning Tests

The Bank has conducted 12 tests each for Clerks Scale I and Scale II Officers 4 testseach for the Scale III and Scale IV Officers and 2 online tests for the Scale V Officersduring the last FY. There is active participation from the branches and offices for thetests. Names of the monthly toppers and Photographs of consistent toppers (3 e-learningtests) are published in Insight. The marks scored in these e-learning tests are consideredfor the annual promotion process and for the calculation of incentives.

Continuous Assessment Test for Prob. Officers

To facilitate updation and continuous learning by the probationary officers SIBSTCconducts E learning tests on 20 modules for each batch of POs BDOs and PGDBF. SIBSTC alsoshoulders the responsibility to ensure that all the POs take efforts to clear the test ontime and get confirmed without any delay.


The Bank has since migrated to issuance of e-circulars in place of manual circulars.All the circulars of the Bank are uploaded using the ‘e-circular software’. Ine-circular Bank’s policies Guidelines and Forms are also uploaded so as to empowerthe branches with readily accessible pool of information/ guidelines.


This is a monthly publication which discusses and analyses relevant themes related tothe recent economic financial and banking topics. As on March 31 2021 352 themes havebeen published since the first publication in December 1991. The objective of this ventureis to kindle interest in economic affairs among the younger generation and also to providea learning platform for the student community. The themes discussed during FY 2020-21 (Apr2020 – March 2021) include RBI & The Liquidity Tap Atmanirbhar Bharat AbhiyanGold – The Yellow Metal Current Account Balance Cyber Frauds: Types of Threats& Attacks Cyber Security: Overview & Online Safe Guards Faceless Assessment– A New Era of Tax Assessment AT1 Bonds KYC – The Journey to DigitalizationCrude Oil & Economy Union Budget 2021 and Bond Yields. The publication is dispatchedto offices of RBI Banks other Corporates and various educational institutions. It is awell-accepted & appreciated publication among students professionals and the academiccommunity. The expense of the Publication is accounted under CSR activity of the bank.

Awards & Accolades

The Bank has received the following awards during the Financial Year 2020-21: -

• Infosys Finacle Client Innovation Award in the following 2 Categories

1) Ecosystem led innovation

2) Customer Journey Reimagination

• UiPath Automation Excellence Award for Excellence in finance and accountingAutomation.

• Finnoviti Award 2021 by banking frontiers for Bank’s fund managementplatform SIB FeeBook

• IBA Awards in 4 categories (among small banks)

1) Most Innovative Project –Winners Title

2) Best use of IT & Data Analytics – Winners Title

3) Best IT risk & cyber security initiatives –Winners Title

4) Best technology Bank of the year - Runner up Title

• The Bank is Runner-up in the category of ‘Digital Deposit in Private SectorBank’ instituted by ASSOCHAM National E-Summit & Awards Banking & FinancialLending Companies "Digital Financial Services: Response to Atmanirbhar Bharat"

ISO 270001:2013 certification

The Bank has been awarded ISO 270001:2013 certification for its Information SecurityManagement System (ISMS).

Foreign Exchange Advisory Cell

The Bank has launched Foreign Exchange Advisory Cell to provide advisory services bysubject experts on FEMA rules and trade finance related issues to the general public. Thecomplimentary service is available to all Foreign Exchange Trade Fraternity.


The Bank ensures strict compliance with all statutory requirements and voluntarilyundertakes several sustainable steps in order to contribute towards a better environment.The Bank has undertaken various initiatives for energy conservation at its premises.Further the Bank has used information technology extensively in its operation and isconsistently pursuing its goal of technological up-gradation in a cost-effective mannerfor delivering quality customer service. As a next generation Bank the Bank has deployed‘Technology’ as a Strategic Business enabler – to build a distinctcompetitive advantage and to achieve superior standards of Customer Service. The Bankbeing a banking company and an authorized dealer in Foreign Exchange has taken allpossible steps to encourage export credit.

Number of cases filed if any and their disposal under section 22 of the sexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013

The Bank has zero tolerance approach towards any action on the part of anyexecutive/employees which may fall under the ambit of ‘Sexual Harassment’ atworkplace and is fully committed to uphold and maintain the dignity of every women staffworking in the Bank. The Bank has complied with provisions relating to the constitution ofInternal Complaints Committee under the Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013 [14 of 2013]. The Policy provides forprotection against sexual harassment of women at workplace and for prevention andredressal of such complaints. All the employees (permanent contractual temporarytrainees) are covered under this policy. Number of complaints pending as at the beginningof the financial year - Nil Number of complaints filed during the financial year –One * Number of complaints pending as at the end of the financial year – Nil *Thecomplaint has been closed after due enquiry finding that same is devoid of any merits.

Particulars of Employees

The Bank had 8314 employees as on March 31 2021. Only MD & CEO (Mr. V.G Mathewfrom 01.04.2020 to 30.09.2020 and Mr. Murali Ramakrishnan from 01.10.2020 to 31.03.2021)was in receipt of aggregate remuneration of more than Rs.1.02 crore per annum/Rs.8.50lakhs per month and no other employees employed for a part of the year was in receipt ofremuneration of Rs.1 crore and above during the FY 20-21. The details of top 10 employeesin terms of remuneration drawn pursuant to provisions of Section 197(12) of the CompaniesAct 2013 read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is annexed to this report (Annexure A). The ratio of theremuneration of each director to the median employee’s remuneration and other detailsin terms of subsection 12 of Section 197 of the Companies Act 2013 read with Rule 5(1) ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 isannexed to this report (Annexure B).


A brief outline of the Bank’s CSR Policy including overview of projects orprograms to be undertaken.

South Indian Bank’s CSR Policy

South Indian Bank is grateful to the society that has supported and encouraged the Bankduring its long journey of growth and development. The Bank believes that no organizationcan make sustainable development without the patronage of the society. The Bank iscommitted to integrate social and environmental concerns in its businessoperations. The Bank shall continue to have among its objectives promotion and growth ofnational economy and shall continue to be mindful of its social and moral responsibilitiesto customers shareholders and the society. Bank is committed to financing the economicand developmental activities of the nation with concern for human rights and environment.

In line with the CSR Policy and in accordance with Schedule VII section 135 ofCompanies Act Bank undertook various activities during FY 2020-21 which had significantimpact on the society. These activities include:

• Eradicating hunger poverty and malnutrition promoting health care includingpreventive healthcare and sanitation and making available safe drinking water.

• Promoting Education including special education and employment enhancingvocation skills and livelihood enhancement projects.

• Empowering women setting up homes and hostels for women and orphans setting upold age homes measures for reducing inequalities faced by socially and economicallybackward groups.

• Ensuring environmental sustainability maintaining quality of soil air andwater.

• Rural development activities.

• Training to promote nationally recognized sports.

• Contribution to Prime Minister’s National Relief Fund.

• Rural development projects.

• Promoting Financial Literacy.

CSR Expenditure

South Indian Bank has always given top priority to fulfilling its obligations underCorporate Social Responsibility. Diversified Projects in the areas of healthcareeducation sports and sanitation that would benefit the society as a whole are identifiedand the Bank wholeheartedly supports such initiatives. In the Financial Year 2020-21 theBank spent Rs.8.05 crore (71.94 % of the budget) towards CSR activities againstRs.12.01 crore in the Year 2019-20.

The amount to be spent by the Bank towards CSR for FY 2020-21 as per Section 135 of theCompanies Act 2013 comes to Rs.11.19 crore. Amount spent by the Bank this year towardsCSR was Rs.8.05 crore. The unspent CSR amount of Rs.3.14 crore was transferred to‘Unspent CSR Account’ on March 31 2021 in compliance with Companies (Amendment)Act 2021. The Bank had also embarked on some major projects last year in the field ofeducation healthcare etc. By choosing long term sustainable projects the Bank has takenan approach which brings steady and long lasting impact on the society. The details of theCSR activities of FY 2020-21 are mentioned in Annexure C to this report.

Web-Link to the CSR Policy


Financial inclusion aims to ensure the availability of formal and basic bankingservices to all Indian households including those in the un-banked and under-bankedareas. South Indian Bank has adopted several financial inclusion initiatives includingKiosk banking. The Bank has successfully migrated to Aadhaar Enabled Payment System (AePS)in the existing KIOSK Model of Banking from the earlier mode of customer ID paymentservice. Now AePS is the only mode by which transactions are taking place in Kiosk Bankingsolution.

Aadhaar Enabled Payment System (AePS)

Aadhaar Enabled Payment System (AePS) is a payment service empowering a bank customerto use Aadhaar as his/her identity to access his/ her respective Aadhaar enabled bankaccount and perform basic banking transactions through a Business Correspondent / POSmachine. National Payment Corporation of India (NPCI) an umbrella organisation for allretail payments are controlling AePS operations. AePS offers basic banking services suchas Cash Withdrawal Cash Deposit Balance Enquiry Aadhaar to Aadhaar Fund TransferMiniStatement and Best Finger Detection. The Bank has implemented Kiosk Banking Model inthe state of Kerala through 8 Individual Business Correspondents and in Tamilnadu through60 Individual Business Correspondents.

Financial Literacy Centres

Financial Literacy is the ability to understand how money works in our day to day lifeand how someone manages it how he/she invests it and how a person offers it to others.More specifically it refers to the set of skills and knowledge that allows an individualto make informed and effective decisions with their financial resources. Bank hasengaged 13 FLCs in different Blocks of Kerala to disseminate financial literacy to thepeople and it is functional through retired bank employees and educated youth. In additionto this Bank has voluntarily appointed 7 FLCs in eight different Districts in Tamilnadu toemphasize the objectives of Financial Literacy.

Our FLCs are now branded under the name "SIB JYOTHIS". Efforts are on to makethem more efficient responsive to the needs of the people. A Board approved policycovering all aspects of Financial Literacy Centres has been formulated giving dueconsideration to the revised guidelines on FLCs circulated by RBI. During the FY 2020-21FLCs have conducted 425 camps covering 11685 participants.

Government of India Scheme - PMJDY

Pradhan Mantri Jan DhanYojana (PMJDY) is conceived as a national mission on financialinclusion initiated by Honourable Prime Minister on August 15 2014. The scheme envisagesuniversal access to banking facilities with at least one basic banking account for everyhousehold. In line with the directives given by Ministry of Finance and SLBC PMJDY schemewas implemented in the Bank since August 18 2014. The Bank has opened 208294 BSBDaccounts as on March 312021 with an outstanding balance of Rs.70.97 Crore. SocialSecurity schemes in insurance (PMJJBY and PMSBY) were also given high priority by theBank.


Department of Financial Services (DFS) under Ministry of Finance had directed banks tobecome Enrolment Registrars with UIDAI so as to set up AADHAAR enrolment stations atbranch premises. As on March 31 2021 86 Aadhaar Enrolment Stations across various statesare functional.

GREEN INITIATIVE IN CORPORATE GOVERNANCE Dispatch of documents in Electronic Form:As a responsible corporate citizen the Bank supports and pursues the ‘GreenInitiative’ of the Ministry of Corporate Affairs ("MCA"). In conformancewith such initiatives and in terms of Rule 18 of the Companies (Management andAdministration) Rules 2014 the Bank may give notice through electronic mode includinge-mail to those Members who have provided their e-mail address either to their DepositoryParticipants (DPs) or to the Registrar/Company. Due to the outbreak of Covid-19 and incompliance with MCA guidelines the notice of 93rd Annual general Meeting andthe Annual Report 2020-21 will be sent via email to all the shareholders and no physicalcopies will be sent via post.

Further in terms of Regulation 36 of the Listing Regulationsthe listed entity isrequired to send soft copies of its AnnualReport to all those shareholder(s) who haveregistered their email address for this purpose. Accordingly the documents including thenotice and explanatory statement of 93rd Annual General Meeting Annual Reportof the Bank for the financial year 2020-21 including Audited FinancialStatementsDirectors’ Report Auditors’ Report etc. for the year ended March31 2021 sent to the e-mail address registered with their DepositoryParticipant(DP)/Registrar/Company. The e-mail addresses indicated in respective DPaccounts which will be periodically downloaded from NSDL/CDSL will be deemed to be theirregistered e-mail address for serving notices/ documents including those covered underSection 136 of the Companies Act 2013. In case a Member whose e-mail address haschanged fails to update the new e-mail address the said documents will be sent to theexisting e-mail address and the said documents will be deemed to have been delivered incompliance with the relevant provisions of the Companies Act 2013 the relevant Rulesmade there under and the Listing Regulations. Member who have not yet registered theire-mail address are requested to do so at the earliest. In case of shares held inelectronic form and in case of any change in the e-mail address Members are requested toupdate the same with their DP and in case of shares held in Physical form Members arerequested to update the same with the RTA/Company.

Please note that the said documents will also be uploaded on the Bank’s and copies thereof will be made available for inspection at theRegistered Office of the Bank during 10.00 a.m. to 3.00 p.m. on all working days exceptSaturdays Sundays Bank Holidays and Public Holidays up to the date of ensuing AGM.

Shareholders have been requested on several occasions to update their e-mail IDs intheir folio/demat a/c to help accelerate the Bank’s migration to paperlesscompliances. The Bank seeks your support to the said green initiatives as it is designedto protect the fragile environment.

Further as a part of green initiative by the Bank all relevant agenda paperspertaining to the Board/Committee are being circulated well in advance to the Board ofDirectors through electronic mode to facilitate easy access of agenda on IPad which wouldprovide sufficient time to the Board for reading and understanding the proposals placed ina meeting.


Transactions processed through the Core Banking Solution are monitored for detectingsuspicious transactions using an AML application to comply with the provisions underPrevention of Money Laundering Act (PMLA). The Bank has set up a Centralized ProcessingCentre (CPC) for customer creation with the objective of full KYC compliance and to useKYC as a fraud prevention tool. The Bank has attached great importance for compliance ofKYC/AML/CFT norms by the customers as per the Reserve Bank of India directive.


The Bank has been registered as a reporting entity under FATCA under GIIN No.IIK7HU.99999.SL.356 to comply with the reporting requirement under the inter-Governmentalagreement entered between Indian and US Government and the CRS Multilateral CompetentAuthority Agreement.


The composition of the Board of Directors is governed by the Banking Regulation Act1949 the Companies Act 2013 SEBI(Listing Obligations and Disclosure Requirements)Regulations2015 and the Code of Conduct on Corporate Governance adopted by the Bank. TheBoard comprises of 10 Directors as on the date of this report with rich experience andspecialized knowledge in various areas of relevance to the Bank including bankingaccountancy small scale industry agriculture and information technology.

Excluding the MD & CEO all other members of the Board are Non-Executive Directorsand six Directors out of the total ten Directors are Independent Directors. Declarationhas been obtained from the Independent Directors as required under the RBI RegulationsSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and Companies Act2013. The remuneration and other benefits paid to MD & CEO of the Bank and otherNon-Executive and Independent Directors during the financial year 2020-21 are disclosed inCorporate Governance Report. Vide Companies (Appointment and Qualification of Directors)Fifth Amendment Rules 2019 an online data bank for the independent directors ("DataBank") has been rolled out by the Indian Institute of Corporate Affairs all theindependent directors of the Bank had registered themselves in the DataBank in compliancewith the same. The Independent Directors have also confirmed that they are not aware ofany circumstance or situation which exists or may be reasonably anticipated that couldimpair or impact their ability to discharge their duties with an objective independentjudgement and without any external influence. In the opinion of the Board the IndependentDirectors possess the requisite expertise and experience and are the persons of highintegrity and repute. They fulfil the conditions specified in the Act and the Rules madethereunder and are independent of the Management.

During the 92nd Annual General Meeting held on September 292020 asrecommended by the Bank the shareholders accorded their approval for :

• Appointment of Sri. Murali Ramakrishnan (DIN: 01028298) as Managing Directorand Chief Executive Officer of the Bank .w.e.f October 12020.

• Appointment of Sri. Paul Antony (DIN: 02239492) as Director of the Bank liableto retire by rotation w.e.f September 292020 in place of Mr. Achal Kumar Gupta (DIN:02192183) who retires by rotation and did not offer himself for re-appointment and ceasedto be a director of the Bank w.e.f September 292020.

• Re-appointment of Sri.Salim Gangadharan (DIN: 06796232) as Non-Executive –Part time Chairman of the Bank and his remuneration. Dr. John Joseph Alapatt (DIN :00021735) Non-executive Independent Director of the Bank retired from the Board ofDirectors w.e.f. 24th September 2020 upon completion of his eight year term asper Section 10A(2A) of the Banking Regulation Act 1949.

Mr. Pradeep M Godbole (DIN: 08259944) has been appointed as the Additional Director ofthe Bank w.e.f. 26th March 2019 pursuant to Section 161(1) of the CompaniesAct 2013 and appointed as a director liable to retire by rotation the 91stAGM held on July 17 2019. He will be appointed as a Non-Executive Director of the Bankliable to retire by rotation and been eligible offers himself for re-appointment.

Sri. R A Sankara Narayanan (DIN: 05230407) has been appointed as the AdditionalIndependent Director of the Bank representing majority sector w.e.f. October 152020pursuant to section 161(1) of the Companies Act 2013 and shall hold the office up to theensuing Annual General Meeting of the Bank. He will be appointed as a Non-ExecutiveIndependent Director of the Bank in majority sector (i.e. Banking) not liable to retireby rotation.


The following changes in Key Managerial Personnel taken place during the financial yearended March 31 2021.

• Sri V G Mathew (DIN: 05332797) ceased to be the MD&CEO of the Bank w.e.f30.09.2020 after business hours on completion of his tenure.

• Sri. Murali Ramakrishnan (DIN:01028298) appointed as MD&CEO of the Bankw.e.f 01.10.2020

• Sri.Joby M.C Joint General Manager has been appointed as Head of Inspection andVigilance Department and Head of Internal Audit and Chief of Internal Vigilance of theBank w.e.f 01.04.2021 and he was classified as Key Managerial Personnel pursuant toSection 2(51 )(v) of the Companies Act 2013.

• Mr. Anto George T who was the Head of Inspection and Vigilance Department andHead of Internal Audit and Chief of Internal Vigilance ceased to be a Key ManagerialPersonnel pursuant to Section 2(51 )(v) of the Companies Act 2013 w.e.f 01.04.2021

Composition of Audit Committee

The Audit Committee of the Board is chaired by Sri M George Korah who is a CharteredAccountant. The other members of the committee are Sri V J Kurian (Non-ExecutiveIndependent Director)Sri Francis Alapatt (Non-Executive Independent Director) Sri.Pradeep M Godbole(Non-Executive Director) and Sri. R A Sankara Narayanan(Non-ExecutiveIndependent Director).The constitution of the Committee is in compliance withtheregulatory requirements. The terms of reference ofthe Audit Committee incorporated in theBank’s Code ofCorporate Governance are in accordance with the SEBI(LODR)Regulations2015 entered into by the Bank with Stock Exchanges where the Bank’sshares are listed under Companies Act 2013 and RBI guidelines.

Independent Directors

In terms of the definition of Independence of Director asprescribed under Regulation16(1) (b) of the SEBI (LODR) Regulations 2015 and Section 149(6) of Companies Act 2013and based on the confirmation/disclosures received from the Directors the followingDirectors are Independent Directors of the Bank as on the date of this report

1. Sri Francis Alapatt (DIN: 01419486)

2. Smt. Ranjana S Salgaocar (DIN: 00120120)

3. Sri Parayil George John Tharakan (DIN: 07018289)

4. Sri V J Kurian (DIN: 01806859)

5. Sri M George Korah (DIN: 08207827)

6. Sri. R A Sankara Narayanan (DIN: 05230407)

Woman Director

In terms of the provisions of Section 149 of the Companies Act 2013 and Regulation 17of the SEBI (LODR) Regulations 2015 the Bank has appointed Smt. Ranjana S Salgaocar (DIN:00120120) as Woman Director on the Board of the Bank.

Bank’s policy on directors’ appointment and remuneration including criteriafor determining qualification positive attributes independence of a director and othermatters provide under sub-section (3) of Section 178 Criteria for appointment as aDirector of the Bank

Nomination and Remuneration Committee of the Board shall identify and ascertain theintegrity qualification expertise and experience of the person who is considered forbeing appointed/reappointed as Director of the Bank and apply due diligence in compliancewith the Banking Regulation Act 1949 Reserve Bank of India directives on Fit &Proper Criteria all other applicable provision of the Companies Act 2013 SEBI (LODR)Regulations 2015 including any amendments from time to time and Nomination Policy of theBank.

Criteria for Determining Qualifications Positive Attributes

a) The professional and personal ethics integrity and track record.

b) Special knowledge or practical experience in Banking accountancy agriculture andrural economy co-operation economics finance law small-scale industry InformationTechnology Payment & Settlement Systems Human Resources Risk Management BusinessManagement or any other matter useful to the Banking Company in the opinion of ReserveBank of India.

c) Ability to provide insights and practical wisdom based on their experience andexpertise relevant to the Bank’s line of business.

d) Details of his/her association with other Companies/LLPs/ Firms (including NBFC)

e) Details of substantial interest in other Companies/LLPs/ Firms (including NBFC).

f) Details of financial facilities if any availed from the Bank.

g) Details of default in the re-payment of loans availed from the Bank or any otherBank if any

h) Commitment to enhancing stockholder value.

i) Ability to develop a good working relationship with members with the Board andcontribute to the working relationship with Senior Management of the Bank.

j) Whether he/she suffers from any of the disqualifications envisaged under theprovisions of Banking RegulationAct1949 Companies Act 2013 and SEBI (LODR)Regulations2015.

k) Any other factors as the Committee may deem fit and in the best interests of theBank and its stockholders.

Criteria for determining Independence of a director

The Criteria of Independence of a director is determined based on conditions as laiddown in the Companies Act 2013 and SEBI (LODR) Regulations 2015. The independentdirector shall at the first meeting of the Board in which he/she participates as adirector and thereafter at the first meeting of the Board in every financial year orwhenever there is any change in the circumstances which may affect his/her status as anindependent director give a declaration that he/she meets the criteria of Independence.


Remuneration Policy for Employees of the Bank:

The Bank has a Board approved Compensation Policy which deals with the Compensation& Benefits of the Employees of the Bank and Whole-time Directors.

The objectives of the Compensation Policy of the Bank inter-alia includes to provide afair and persistent basis for motivating inspiring and rewarding the employeesappropriately according to their jobs/role size performance accomplishmentscontribution skill aptitude and competence to implement standards on sound compensationpractices and incentives and to provide effective governance of compensation payable tothe WTDs/CEO and other staff alignment of compensation with prudent risk taking andeffective supervisory oversight. The disclosure requirement of the remuneration isseparately provided in "Disclosure under Basel III norms."


Remuneration of MD & CEO and Other Employees (including Key Managerial Personnel):The Board approved Compensation Policy deals with the Compensation & Benefits of theWhole-time Directors/MD & CEO. The remuneration of the Whole-time Directors/MD &CEO is recommended by the Nomination & Remuneration Committee (NRC) to the Board forapproval after considering the factors prescribed under the Compensation Policy.

The Board considers the recommendations of NRC and approves the remuneration with orwithout modifications subject to shareholders’ and regulatory approvals. Theremuneration payable to Whole-time Directors/MD & CEO is subject to prior approval ofthe Reserve Bank of India (RBI). Therefore the remuneration or any revision inremuneration to Whole-time Directors/MD & CEO is payable only after receipt of theapproval from RBI.

For the other employees (including Key Managerial Personnel and Compliance staff) theBoard based on the recommendation of the NRC may devise appropriate compensationstructure. The compensation paid to other employees that include Award Staff Officerscoming under Scale I to IV and executives coming under Scale V to VII is fixed based onthe periodic industry level settlements with Indian Banks Association. The variablecompensation paid to functionaries is based on the Performance Linked Incentive Schemewhich has been formulated on the basis of performance parameters set in PerformanceManagement System.

Remuneration of Chairman:

The NRC recommends the remuneration of the non-executive Chairman to the Board which isconsidered and approved by the Board in the same manner subject to Shareholders’ andregulatory approvals. The NRC while recommending the remuneration of the part-timeChairman considers the Function Role and Responsibilities of the Chairman and Regulatoryguidelines as applicable etc. The remuneration payable to the Chairman is subject to priorapproval of the Reserve Bank of India (RBI). Therefore the remuneration or any revisionin remuneration of the Chairman is payable only after receipt of the approval from RBI.

Remuneration of Non-Executive Directors (NEDs):

The NEDs are paid sitting fees for attending each meeting of the Board of Directors orany committee thereof as approved by the Board within the permissible limit prescribedunder the Companies Act 2013 SEBI (LODR) Regulations 2015 and other regulatoryguidelines as amended from time to time. The Board while recommending the change in thesitting fees considers various factors like size and complexity of organizationComparison with the peer Banks and Regulatory guidelines as applicable etc. whilerecommending the change in the sitting fees to the Board.

Policy on Board Diversity:

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015to ensure compliance with the applicable provisions the Bank has devised a policy onBoard diversity to ensure adequate diversity in its Board of Directors. The Bank believesthat diversity underpins the successful operation on an effective Board and embracesdiversity as a means of enhancing the business. With a view to achieve sustainable andbalanced development the Bank sees increasing diversity at the Board level as anessential element in supporting the attainment of its strategic objectives. A diverseBoard includes and makes good use of differences in the skills regional and industryexperience background race gender and other qualities of Directors.

Policy on Board Diversity of the Bank mainly depends on the qualifications forappointment of Directors of the Bank as contained in the Banking Regulation Act1949 andsatisfying the Fit and Proper Criteria for directors as per the regulatory requirement ofRBI.

The Bank continuously seeks to enhance the effectiveness of its Board and to maintainthe highest standards of corporate governance and recognizes and embraces the benefits ofdiversity in the boardroom. Diversity is ensured through consideration of a number offactors including but not limited to skills regional and industry experience backgroundand other qualities. In informing its perspective on diversity the Bank also takes intoaccount factors based on its own business model and specific needs from time to time.

The NRC has the responsibility to lead the process for Board appointments and foridentifying and nominating candidates for appointment to the Board. The benefits ofdiversity continue to influence succession planning and continue to be the key criteriafor the search and nomination of directors to the Board. The Board appointments are basedon merit and candidates will be considered against objective criteria having due regardfor the benefits of diversity on the Board including gender. The policy of BoardDiversity is displayed in bank’s website.(

Board Level Performance Evaluation

The Companies Act 2013 and SEBI (LODR) Regulations 2015 stipulates the performanceevaluation of the Directors including Chairman Board and its Committees. Considering thesaid provisions the Bank has devised the process and the criteria for the performanceevaluation which has been recommended by the Nomination & Remuneration committee andapproved bythe Board.

The process for formal annual performance evaluation is as under:

• Committee of Independent Directors at their separate meeting evaluates theperformance of Non-Independent Directors including Chairman of the Bank and the Board as awhole.

• The Board evaluates the performance of the Independent Directors Non-ExecutiveDirectors Chairman and MD & CEO (excluding the director being evaluated) andsubmit its report to the Nomination & Remuneration committee.

• The Board and Nomination & Remuneration Committee evaluates the fulfilmentof the independence criteria asspecified in the regulations and their independence fromthe management.

• The Board evaluate the performance of Board level committees.

• Nomination & Remuneration Committee evaluates/ reviews the performance ofeach Director recommends theappointment / reappointment / continuation of Directors to theBoard. Based on the recommendation of Nomination & Remuneration Committee Board willtake the appropriate action.

The criteria for performance evaluation are as under:

Performance Evaluation of Non-Executive Directors MD & CEO and Chairman

Participation at Board/Committee Meetings Managing Relationship Knowledge and skillPersonal attributes Compliance and Corporate Governance; Leadership; StrategyFormulation Strategy Execution Financial Planning/ Performance Relationships with theBoard Human Resource Management and Succession Planning Personal Qualities; Resources;Conduct of Meetings.

Performance Evaluation of Board

Composition and Diversity; Strategic Foresight Value Creation Process and ProceduresOversight of the Financial Reporting Process and Internal Controls Oversight of AuditFunctions Corporate Governance Corporate Culture monitoring of business activitiesUnderstanding of the business of the Bank and Regulatory environment; Contribution toeffective corporate governance and transparency in the Company’s Operations;Deliberations/decisions on the Company’s strategies policies plans and guidance tothe Executive Management.

Performance Evaluation of the Board Level Committees

The performance and effectiveness of the Committee; Frequency and duration; Spread oftalent and diversity in the Committee; Understanding of regulatory environment anddevelopments; Interaction with the board.

Outcome of Performance Evaluation

An annual performance evaluation of the Board Committees of the Board and theindividual members of the Board was conducted in June 2021 as per the aforesaid processand the report on the evaluation were presented at the meeting of the N & RCand the Board of Directors. The Directors expressed their satisfaction with the evaluationprocess.

The feedback of the Board post completion of the exercise of performance evaluation ofthe Board and Committees of the Board were as under:

• Conduct customer surveys to assess the quality of customer service

• Greater emphasis should be given to complaints on digital products

• Update the Board periodically on the revised strategies for addressing variousissues in the light of outbreak of Covid-19.


a) Statutory Auditors:

The shareholders at its 91st Annual General Meeting held on July 172019 appointed M/s Varma & Varma Chartered Accountants Kochi (Firm RegistrationNumber 004532S) as Statutory Central Auditors of the Bank to hold office for a period of2 years until conclusion of 93rd Annual General Meeting. Further at the92nd AGM held on September 292020 the appointment of Statutory CentralAuditors was ratified.

For the year ended March 31 2021 fees paid/payable to the Statutory Auditor M/s Varma& Varma Chartered Accountants is as follows:

Fee paid/payable# Amount (in lakhs)
Statutory audit/Limited review 35.00
Certification and other attestation charges 16.50
Non-Audit services 0.00
Total 51.50

# Excluding the branch audit fee and out of pocket expenses There is no qualificationor adverse remark in Auditors’ Report. There is no incident of fraud requiringreporting by the Auditors under Section 143(12) of the Act.

The Reserve Bank of India vide circular No. DoS.CO.ARG/ SEC.01/08.91.001/2021-22 dtdApril 27 2021 stipulated that "For Entities with asset size of Rs.15000 crore andabove as at the end of previous year the statutory audit should be conducted under jointaudit of a minimum of two audit firms [Partnership firms/Limited Liability Partnerships(LLPs)]. Further in compliance with the RBI circular we sought the approval of the RBI forappointment of auditors and the RBI vide letter No DOS.ARG.No. PS-90 /08.21.005/2021-2022dated July 9 2021 has approved the re-appointment of M/s. Varma & Varma CharteredAccountants (Firm Registration Number 004532S) as Joint Statutory Central Auditors ofthe Bank for the Financial Year 2021-22 and this will be their third Year. And to appointM/s. CNK & Associates LLP Chartered Accountants Mumbai (Firm Registration Number:101961 W/W-100036) as new Joint statutory Central auditors for the Financial Year 2021-22and this will be their first Year.

b) Secretarial Auditors and Secretarial Audit Report:

Pursuant to Section 204 of the Companies Act 2013 the Bank had appointed M/s SVJS& Associates Company Secretaries Practicing Company Secretaries Kochi as itsSecretarial Auditors to conduct the secretarial audit of the Bank for the FY 2020-21. TheBank provided all assistance and facilities to the Secretarial Auditor for conductingtheir audit. The Report of Secretarial Auditor for the FY 2020-21 is annexed to thisreport as Annexure D. There are no reservations adverse remark or disclaimer in theSecretarial Audit Report. No offence of fraud was reported by the Secretarial Auditor ofthe Bank.

Pursuant to circular no. CIR/CFD/CMD1/27/2019 dated February 09 2019 issued by SEBIthe Bank has obtained Secretarial Compliance Report from Practicing CompanySecretaries on compliance of all applicable SEBI Regulations and circulars/ guidelinesissued thereunder and the copy of the same was submitted with the Stock Exchanges.

INTERNAL CONTROL AND AUDIT/INSPECTION Internal Control and their Adequacy

The Bank has put in place extensive internal controls and processes to mitigateoperational risks which includes maker checker authentication of CBS transactionscentralized processing of opening and modifications of CASA accounts and loan accountscentralized sanctioning of loan facilities day end checks to monitor critical issuesinvolving timely renewal of credit reports closure of the Bank Guarantees timelyobtaining of loan documents EM creation and CERSAI registration etc. Various Preventivecontrols viz. Dual custody for cash gold and other security items maintenance of dailycontrol registers for security items introduction of finger-scan-authentication forprocessing of transactions in CBS in addition to login passwords stringent guidelines onpassword usage STP processes between CBS and payment interface systems for transmissionof messages etc. are in place. As per the requirement of Companies Act 2013 the Bank hasformulated Internal Financial Controls framework. Risk and Controls associated with eachprocess in the Bank are documented under the Internal Financial Controls Framework.Inspection and Vigilance Department plays a significant role in testing the controleffectiveness for each process under the framework. The Internal Audit function providesindependent assurance to the Board of Directors and Senior Management on the quality andeffectiveness of the Bank’s internal control risk management and governance systemsand processes thereby helping the Board and Senior Management protect the Bank and itsreputation.


The Bank has an Inspection & Vigilance department which is responsible forindependently evaluating the adequacy and effectiveness of all internal controls riskmanagement systems governance systems and processes. The Department is manned byappropriately qualified personnel to handle the Risk Based Internal Audit ManagementAudits Information Systems Audit and Special audits including Investigations. All theinternal audits are conducted based on the RBI direction in relation to conducting riskbased internal audit and concurrent audit of branches and identified critical processesof the branches.

Head of Internal Audit &Vigilance is directly reporting to MD & CEO. Internalinspectors conduct inspection at regular intervals and the inspection reports are placedto Audit Committee at Executive level (Audit Committee of Executives - ACE) for reviewwhich is overseen and controlled by Board Level committee (Audit Committee of Board - ACB)

Audit of Branches

All the branches are subjected to Risk Based Internal Audit (RBIA). This audit isconducted at periodic intervals based on the risk perception. All the audits are conductedbased on predefined check points and all the operational areas are covered under thisaudit. Credit audit is also conducted as part of Risk Based internal audit where aggregatecredit exposure of a borrower is Rs.5 crore and above. In addition to RBIA of branchesthe Bank has concurrent audit system which covers selected Branches conducted byqualified Chartered Accountants/retired officers. The selection of branches for concurrentaudit is done in such a way that it covers branches having substantial advance entirespecialized Branches such as ‘B’ Category Branches Corporate Branches etc. andalmost all isolated / remote branches irrespective of its business volume. The Bank hasintroduced a conservative selection of branches which has resulted in a higher frequencyof audit. The Bank has also introduced special audit from April 2019 (a limited ConcurrentAudit) where audit is conducted by qualified Chartered Accountants/retired officers inbranches where concurrent audit does not exist covering critical areas of Branchbusiness. In addition to the concurrent and risk based internal audits the branches aresubjected to Surprise Inspection Flash Inspection Special Audit IS Audit RevenueInspection Self-Audit Gold Loan Inspection/ Asset Verification and compliance inspectionduring the financial year. Separate monitoring team - Inspection Monitoring Group (IMG)closely monitors various inspections/audits at the Branches. There are six IMGs who arereporting to Head of IMG. These Monitoring groups are assigned the task of ensuring thecompliance and closure of the inspection report of the branches. During the course ofinspections serious issues if any concerning regulatory guidelines legal requirementsand operational processes are found these are escalated to the Management for timelyaction.

All the branch related audits are presently automated through system where reportingrisk rating compliance and closure of the reports are done through software applicationwhich provides the Bank with an overall control on various audits conducts in thebranches. Continuous improvements are made to the application to automate severalactivities at HO and digitize the records in single application.

Audit of Departments and critical process

Management Audit of Regional Offices (RO) and Departments are conducted at periodicalintervals based on the risk perception. In addition to the management audit conducted byinspection department all the critical operations such as International Banking DivisionTreasury Department and Credit Department and Centralized Processing Centres etc. aresubjected to concurrent audit by independent Chartered Accountant firms. All these reportsare reviewed by Audit committee of Executives and corrective steps are taken to rectifythe lapses/ irregularities if any pointed out in such inspections. Information SystemAudit of CBS and major applications are conducted by internal audit and external auditfirm. The IS audit team also undertakes a general scrutiny of the efficiency of theinformation system at branch level and its rating so as to enhance the internal controls.

New product/process whenever introduced in the Bank is reviewed by InspectionDepartment and recommendations are made for necessary controls/improvements fordeficiencies / gaps observed in existing internal controls. Inspection Division alsocarries out independent evaluation of Bank’s internal financial controls in terms ofCompanies Act 2013 and also the adequacy of internal financial controls with reference tothe Financial Statements


The Statutory Auditors Report for the year 2020-21 does not contain any qualification.


A separate report profiling Corporate Governance as required under applicableregulations of the SEBI (LODR) Regulations 2015 and a certificate from M/s SVJS &Associates Company Secretaries Secretarial Auditors of the Bank are annexed to thisReport.

Annual Return/Extracts of Annual Return

Pursuant to sub-section 3(a) of Section 134 and subsection (3) of Section 92 of theCompanies Act 2013 read with Rule 11 and 12 of the Companies (Management andAdministration) Rules 2014 copy of Annual Return as at March 312021 in Form No. MGT-7and the extracts of the Annual Return as at March 31 2021 in form no. MGT-9 is hosted onthe website of the Bank and can be viewed

Business Responsibility Report

As stipulated in Listing Regulations the Business Responsibility Report describing theinitiatives taken by the Bank from environmental social and governance perspective isattached as part of the Annual Report as Annexure-E.

Dividend Distribution Policy

In accordance with the Regulation 43A of Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 the Bank hasformulated a Dividend Distribution Policy and the Policy is hosted on the website of theBank and can be viewed. The policy was amended by the Board of Directors at their meetingheld on March 302021 to make it in line with the latest income tax provision on TDS fordividend. ( 13=2672&linkId=2672)

Related Party Transactions

The Board of Directors has formulated a policy on materiality of Related PartyTransactions and also on dealing with Related Party Transactions pursuant to theprovisions of the Companies Act 2013 and SEBI (LODR) Regulations 2015. The same isdisplayed on the website of the Bank ( nkIdLvl2=215&LinkIdLvl3=782&linkId=782). Since the related party transactions are in the ordinary course ofbusiness and on an arm’s length basis and not material hence AOC2 is not applicable.

Material Changes and Commitment Affecting Financial Position of the Bank

There are no material changes and commitments affecting the financial position of theBank which has occurred between the end of the financial year of the Bank i.e. March 312021 and the date of the Directors’ report i.e. July 22 2021.

Significant and material orders passed by Regulators

During the year under review there are no significant and material orders passed bythe regulators or courts or tribunals impacting the going concern status and Bank’soperations in future.

Maintenance of Cost Records

Being a Banking Company the Bank is not required to maintain cost records as persub-section (1) of Section 148 of the Companies Act 2013.

Details in respect of frauds reported by auditors

There is no fraud reported by auditors under sub-section (12) of section 143 of theCompanies Act 2013 other than those which are reportable to the Central Government

Compliance to Secretarial Standards

The relevant Secretarial Standards issued by the Institute of Company Secretaries ofIndia (ICSI) related to the Board Meetings and General Meeting have been complied with bythe Bank.

Strictures and Penalties

During the last three financial years there were no penalties or strictures imposed onthe Bank by the SEBI and any of the stock exchanges and/or any other statutory authoritieson matters relating to capital market.

In terms of the powers conferred under Section 47 A(l)(c) read with Section 46(4)(i) ofthe Banking Regulation Act 1949 the Reserve Bank of India (RBI) by an order dated July06 2021 has imposed a penalty of Rs.1crore (Rupees One Crore Only) on the Bank onaccount of contravention of directions contained in Circulars on ‘Lending toNon-Banking Financial Companies (NBFCs)’ and ‘Bank Finance to Non-BankingFinancial Companies (NBFCs)’.

Management Discussion and Analysis Report

This has been dealt with in a separate section in the Annual Report.

Particulars of Loans Guarantees or Investments

Pursuant to Section 186 (11) of the Companies Act 2013 the provisions of Section 186of Companies Act 2013 except subsection (1) do not apply to a loan made guaranteegiven or security provided or investment made by a banking company in the ordinary courseof business.

Directors’ Responsibility statement

Pursuant to the requirement under Section 134(5) of the Companies Act 2013 withrespect to the Director’s Responsibility Statement it is hereby confirmed that:

a) in the preparation of the annual accounts for the financial year ended March 312021 the applicable accounting standards had been followed along with proper explanationrelating to material departures;

b) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Bank at the end of the financial year 2020-21 andof the profit of the Bank for that period;

c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Bank and for preventing and detecting fraud and otherirregularities;

d) the Directors had prepared the annual accounts for the financial year ended on March31 2021 on a going concern basis;

e) the Directors had laid down internal financial controls to be followed by the Bankand that such internal financial controls are adequate and were operating effectively; and

f) the Directors had devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.


The Board of Directors places on record its gratitude to the Reserve Bank of IndiaSecurities and Exchange Board of India Government of India Government of Kerala and allother state Governments where the Bank operates other Government and RegulatoryAuthorities including stock exchanges where the Bank’s shares are listed andcorrespondent Banks for their strong support and guidance during the year. The Board alsoplaces on record its gratitude to the Bank’s shareholders and customers for theircontinued support patronage and goodwill. The single most important pillar of anyInstitution is its personnel more so in the case of a service entity like a Bank. TheBank acknowledges this fact and thanks all of them for their diligence and loyalty towardsthe Bank. The Board expresses its sincere appreciation for the dedicated services renderedby officers and employees of the Bank at all levels.

(SALIM GANGADHARAN) By Order of the Board
Place : Thrissur DIN : 01028298
Date : July 22 2021