The Board of Directors has pleasure in presenting the Bank's
Annual Report along with Audited Balance Sheet and Profit and Loss Account of the Bank for
the year ended 31st March 2019.
Business Operations
The Business of the Bank stood at र4,04,194.84 crore as on
31st March 2019 as against र3,55,552.07 crore as on 31st
March 2018. Total deposits of the Bank stood at र2,32,645.38 crore. The gross
advances as at end-March 2019 stood at र1,71,549.46 crore. The Credit
deposits ratio of the Bank, as at end-March 2019, stood at
73.77%. The Bank ensured adequate flow of credit to the productive
sectors of the economy. The Loans & Advances portfolio of the Bank is well diversified
and balanced.
Key Highlights of Bank's Performance in FY 2018-19
During the financial year 2018-19, the Govt. of India infused
capital aggregating to र6686 crore in the Bank. The Bank also raised capital
of an amount upto र250 crore from its employees under ESPS Consequently, the
Capital Adequacy of the Bank improved to 12.73% as on 31st March 2019 from
10.50% as at 31st March 2018.
The restrictions imposed on the Bank by RBI under the PCA
framework were lifted on 31st January 2019 in view of its improved performance
and the Bank meeting the benchmark levels as per the PCA framework.
The Bank reported Net Profit of र55 crore for FY
2018-19 as against loss of र5872 crore for FY 2017-18.
The Gross NPA reduced from 17.63% as at 31st March
2018 to 12.66% as on 31st March 2019 while the Net NPA declined from 10.48% as
at 31st March 2018 to 5.93% as on 31st March 2019.?? The
deposits of the Bank witnessed a growth of 12.20% y-o-y and the gross advances increased
by 15.75% y-o-y. CASA deposits as a percentage of total deposits of the Bank stood at
29.40% as on 31st March 2019.
Retail Advances Portfolio increased by 41.62% y-o-y and MSME
Advances Portfolio increased by 12.63% y-o-y.
Cash Recovery and Upgradation increased from F3161 crore
for FY 2017-18 to र6597 crore for FY 2018-19 while fresh slippages were
contained to र7066 crore during the reported year against र12429
crore of FY 2017-18.
The Provision Coverage Ratio improved to 75.84% as on 31st
March 2019 from 64.07% as at 31st March 2018.
NIM for FY 2018-19 increased to 2.73% from 2.18% for FY
2017-18.
The Cost of Deposits decreased to 5.64% as at March 2019 from
5.67% as at March 2018, while yield on Total advances increased to 8.23% as at March 2019
from 7.73% as at March 2018.
Capital & Reserves
During the Financial Year 2018-19, the Bank received capital infusion
from the Government of India in two tranches viz. र5500 crore on 31st
December 2018 and र1186 crore on 31st January 2019. Accordingly,
upon receipt of all requisite approvals, the following shares were allotted to the
Government of India on Preferential basis: (i) 57,23,20,499 equity shares at an Issue
price of र96.10 (including premium of र86.10) per share
aggregating to र5500 crore
Financial Performance
The Bank has posted a total income of र20,536.77 crore
during the year as against र20,181.25 crore last year. The Operating Profit
of the Bank increased to र3753.76 crore for the year ended 31st
March 2019 as against र3,703.18 crore for the year ended 31st
March 2018. The Financial performance of the Bank is given below:-
Financial Performance |
|
|
|
(Amt. in र crore) |
|
31.03.2019 |
31.03.2018 |
Interest Income |
17867.69 |
17388.89 |
Other Income |
2669.08 |
2792.36 |
Total Income |
20536.77 |
20181.25 |
Interest Paid |
12369.57 |
12888.13 |
Operating Expenses |
4413.44 |
3589.94 |
Total Expenses |
16783.01 |
16478.07 |
Operating Profit |
3753.76 |
3703.18 |
Provisions & Contingencies |
3698.77 |
9574.92 |
Net Profit/(Loss) for the Year |
54.99 |
(5871.74) |
before Exceptional Item |
|
|
Less: Exceptional Item |
0.00 |
0.00 |
Net Profit/(loss) for the year after |
54.99 |
(5871.74) |
Exceptional Item |
|
|
Add-Profit/(Loss) brought forward |
(5871.74) |
0.00 |
Add-Investment Reserve Account |
0.00 |
0.00 |
Net Profit/ (loss) available for appropriation |
(5816.75) |
(5871.74) |
APPROPRIATION |
(5816.75) |
(5871.74) |
Transferred to Statutory Reserve |
13.75 |
0.00 |
Transferred to Revenue and Other reserves |
0.00 |
0.00 |
Transferred to Special Reserve u/s 36(1)(viii) of the Income
Tax Act 1961 |
0.00 |
0.00 |
Transferred to Capital Reserve |
31.05 |
0.00 |
Transferred to Investment Reserve Account |
0.00 |
0.00 |
Interim Dividend |
0.00 |
0.00 |
Investment Fluctuation Reserve |
10.19 |
0.00 |
Proposed Dividend |
0.00 |
0.00 |
Tax on Dividend |
0.00 |
0.00 |
Balance carried over to Balance Sheet |
(5871.74) |
(5871.74) |
*Figures in bracket () denote loss.
** The figures of the previous period/year have been regrouped/
rearranged, wherever considered necessary, to conform to current period/year's
classification.
Board of Directors
During the year FY 2018-19, 14 meetings of Board of Directors, 12
meetings of Management Committee of Board and 12 meetings of Audit Committee of Board,
were held. Sh. Himanshu Joshi was Executive Director of the Bank till the date of his
superannuation i.e. upto 31st October 2018. Thereafter, Shri Vijay Dube and
Shri Balakrishna Alse S were appointed in accordance with Section 9(3)(a) of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980 and they assumed charge as
Executive Directors of the Bank on 01st November 2018 and 26th
December 2018, respectively. Shri S.M. Narasimha Swamy recently joined the Bank as RBI
Nominee Director in place of Shri S. Ganesh Kumar w.e.f. 26th April 2019.
Further, Smt. Mala Srivastava, Part-Time Non-Official Director of the Bank laid down
office on 24 th April 2019 on completion of her tenure.
The Bank places on record its appreciation for the guidance received
from Shri Himanshu Joshi, Smt. Mala Srivastava and Shri S. Ganesh Kumar during
deliberations of the Board/Committees of the Board and also in the conduct of the
Bank's business during their tenure of office as Directors of the Bank.
Statutory Audit
During the year, the Bank has with the approval of the Reserve Bank of
India appointed M/s B C Jain & Co., Kanpur; M/s S N Dhawan & Co. LLP, New Delhi;
M/s S.P. Chopra & Co., New Delhi; M/s Batra Deepak & Associates, New Delhi as
Statutory Central Auditors of the Bank for FY 2018-19.
Explanations/Comments by the Board of Directors in response to
ModifiedOpinion/Adverse Remarks/Emphasis of Matter, if any, in the Independent
Auditors' Report
N.A.
Secretarial Audit
Pursuant to Regulation 24A of the SEBI Listing Regulations read with
SEBI Circular dated 08th February 2019, the Board of Directors appointed M/s.
Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct
Secretarial Audit of the Bank for the financial year ended 31st March, 2019. The
Secretarial Audit Report of the Bank is annexed to this Report.
Explanations/Comments by the Board of Directors in response to
observation, if any, in the Secretarial Audit Report
In respect of observation made by M/s. Agarwal S. & Associates,
Company Secretaries in the Secretarial Audit Report for FY 2018-19 w.r.t. the composition
of the Board of Directors of the listed entity in view of vacancies under section
9(3)(e),(f) & (h) of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980, it is stated that in terms of Section 9(3) of the aforesaid Act, all the
directors on the Board are appointed /nominated by the Central Government other than three
directors elected by the shareholders of the Bank (other than Central Government). The
Bank has through various communications requested the Ministry of Finance, Govt. of India
from time to time to nominate directors in respect of the existing vacancies. Further, the
position of existing vacancies on the Board is also being apprised to the Ministry on
monthly basis.
Corporate Social Responsibility
Bank's aim is to minimize the impact of business on the
environment, have a positive effect on society and seek to work with other NGOs or
non-profit charities, development agencies, organizations etc. who embrace these
objectives. We aim to use natural resources responsibly, work with community projects and
encourage and educate our employees in these goals. Staff members are encouraged to make
contributions by understanding the aspirations of underprivileged sections and endeavoring
to evolve measures to remove indisputable social and development lacunae. Under the
community service various welfare and social activities are undertaken by the Bank both in
Banking and non-Banking areas to raise the quality of life of the downtrodden and under
privileged sections of the society.
CSR initiatives undertaken by the Bank in FY 2018-19
The Bank undertakes various CSR activities on an ongoing basis which
includes training programs at RSETIS for self employment generating activities etc. Bank
has also sanctioned TATA ACE TEMPO as a part of community services to NGO for providing
assistance to poor and needy.
Directors' Responsibility Statement
The Directors confirm that, in preparation of the Annual Accounts for
the year ended 31st March, 2019: the applicable accounting standards have been
followed along with proper explanation relating to material departures, if any, the
accounting policies framed in accordance with the guidelines of the Reserve Bank of India,
were consistently applied, reasonable and prudent judgment and estimates were made so as
to give true and fair view of the state of affairs of the Bank at the end of financial
year and of the profit and loss of the Bank , for the year ended on 31st March,
2019, proper and sufficient care was taken for the maintenance of adequate accounting
records in accordance with the provisions of applicable laws governing banks in India for
safeguarding the assets of the Bank and for preventing and detecting fraud and other
irregularities.
Internal financial controls were laid down and these were adequate and
operating effectively Proper systems were in place to ensure compliance of all laws
applicable to the Bank and these were adequate and operating effectively. The accounts
have been prepared on a going concern basis.
Acknowledgments
The Board of Directors expresses its gratitude to the Government of
India, Ministry of Finance, Department of Economic Affairs, Reserve Bank of India (RBI),
Securities and Exchanges Board of India (SEBI) and other Government & Regulatory
Agencies for their valuable guidance and continued support provided to the Bank throughout
the year. The Board of Directors are also grateful to the valued customers, esteemed
stakeholders and also wish to place on record its great appreciation of the staff members
for their involvement and dedication in the overall development, growth and prosperity of
the Bank.
|
For and on behalf of the Board of Directors |
Place: Gurugram |
(Mukesh Kumar Jain) |
Date: 13th May 2019 |
Managing Director & CEO |
|