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3. heyebOe efveosMeke SJeb meerF&Dees kee keLeve Statement of Managing Director & CEO 4
- meneeke kebheefveeeb/mebege Gece Deewj heeeesefpele mebmLeeSb - Subsidiaries/Joint Ventures and Sponsored Institutions 24
- DeeYeej - Acknowledgements 28
14
NOTICE FOR 14TH ANNUAL GENERAL MEETING ENCLOSED
1
Annual Report 2016-17
. . Shri R. P. Marathe
Managing Director & CEO
]. \ .
Shri Ateesh Singh Shri G. Sreekumar Shri Premchandra A. Sethi
. . \ .
Shri R. Thamodharan Dr. Archana R. Dholakia Shri Deendayal Agrawal
2
Jeeef<e&ke efjHees& 2016-17
. . . ] . .
Shri P. N. Deshpande Shri Nandkumar V. Pujari Shri Narender Kabra Shri M. C. Kulkarni
] ] . \. . .
Shri Rajkiran Bhoir Shri Manoj Biswal Shri R. H. Phadnis Shri C. K. Verma
. ]. \ . . . . ( )
Shri S. G. Chitale Shri T. V. Raman Murthy Shri R. K. Pandey (C.V.O.)
3
Annual Report 2016-17
. . Shri R. P. Marathe
Managing Director & CEO
, Dear Shareholders,
I extend a very warm welcome to each one of you to the 14th Annual
14
General Meeting of your Bank. During past couple of years banking
]
industry is passing through turbulence, rise in NPAs and consequent
[
adverse impact affecting many public sector banks. I have taken over
26 , 2016 as Managing Director & CEO of your Bank on 26th September, 2016. I
\ thank the Government of India for entrusting me with the responsibility
] ^ to lead this esteemed Bank, in such challenging times. I am committed
82 \ to lead this 82 year old institution and take it to greater heights and
\ increase the stakeholders value.
4
Jeeef<e&ke efjHees& 2016-17
31 \, 2017 - Let me now place before you some of the key features about your
Banks performance for the year ended 31st March 2017.
\
Performance of your Bank during 2016-17.
2016-17 -
Your Bank has a branch network of 1897 branches of which 55%
1897 , ] 55
branches are in rural and semi urban area. Bank has presence in 30
30 ] 4 states and 4 union territories. Bank has also ATM network of 1878, for
providing services to customers. Bank has committed and dedicated
1878 - work force with an average age of about 42 years and 37% staff
, ] 42 37% 35 having age less than 35 years.
The year 2016-17 has been a year of consolidation. In keeping with low
2016-17 [ () credit off take, Bank reduced its bulk deposit liabilities and certificate
] ] of deposits. As a result, the share of CASA deposits increased from
36.67% as on 31.03.2016 to 44.89% as on 31.03.2017. Another focus
] 31.03.2016 36.67%
was NPA recovery. The total reduction in NPAs by way of recovery,
[ 31.03.2017 44.89%
upgradation and write off increased from Rs.1740 crore in 2015-16 to
, -
Rs.2316 crore in 2016-17. Your Bank maintained the capital adequacy
2015-16 .1740 [ ratios of CET 1 Capital, Tier I Capital and total CRAR. Other highlights
2016-17 .2316 1 ], I ] of performance are as under:
] -
Total business stood at Rs.2,40,590 crore as on 31.03.2017.
-
31.03.2017 .240590 As on 31.03.2017, total deposits stood at Rs.1,39,053 crore &
( 2015-16 .2345 ) Net loss for the year ended March 31, 2017 was Rs.1,373 crore
31 \, 2017 .1373 (as compared to net profit of Rs.101 crore for the year ended
(31 \, 2016 .101 March 31, 2016).
) Gross NPAs and Net NPAs stood at 16.93% [Rs.17,189 crore]
16.93% (.17189 ) and 11.76% [Rs.11,230 crore] respectively.
11.76% (.11230 )
Bank had Capital Adequacy ratio of 11.18% as on 31st March
] 31 \, 2017 11.18% , ]
2017, well above the required level of 10.25% as per Basel III
-III 10.25% norms.
CET 1 ratio stood at 7.28% as against minimum required 6.75%.
1 6.75% 7.28%
5
Annual Report 2016-17
During the year, your Bank had taken new business initiatives as
] :
under:
-
Revamping of CPCs Retail and MSME to reduce the turnaround
time along with better evaluation of proposals.
[ Bank has all the IT Products to suit the Gen Next Customer
aspirations.
Way forward:
. . R. P. Marathe
Managing Director & CEO
6
Jeeef<e&ke efjHees& 2016-17
kegue peceejeefMeeeW ceW keemee kee DebMe CASA Share in Total deposits 37.09 36.67 44.89
met#ce Je ueIeg Gece Micro and Small Enterprises 20657 22334 20585
DeuhemebKeke Jeie& kees Deefiece Advances to Minority Sections 3264 3037 2921
heefle Mesej yener cetue Book Value Per Share 65.61 63.36 46.96
heefle kece&eejer ueeYe (` ueeKe ceW) Profit Per Employee (` in lakhs) 3.18 0.73 (10.58)
Deewmele DeeeqmleeeW hej Deee Return on Average Assets 0.33 0.07 (0.86)
mekeue Devepe&ke Deeeqmle Devegheele Gross NPA ratio 6.33 9.34 16.93
efveJeue Devepe&ke Deeeqmle Devegheele Net NPA ratio 4.19 6.35 11.76
SSveyeermeer kees heeLeefcekelee $eCe Priority Credit to Adjusted Net Bank Credit 41.76 39.82 34.99
7
Annual Report 2016-17
31 \ 2017 - Your Directors have pleasure in presenting the Annual Report of the
\ Bank with the audited Balance Sheet, Profit & Loss Account and the
Report on Business and Operations for the year ended March 31, 2017.
.
1. MANAGEMENT DISCUSSION AND ANALYSIS
1. \\
1.1 Economic and Banking Scenario 2016-17
1.1 2016-17
The global economy was marked with subdued growth with low
commodity prices and inflation rates for the major part of the
\ . . year. However Post U.S. election, expectations of loose fiscal
\ ] policy in the United States have pushed the dollar into a strong
] \\ . . ] ] position and higher U.S. Treasury interest rates, thereby giving
, ] momentum to the yields across the world as well.
] Indian growth story remained robust despite the demonetization
drive in quarter 3 of the FY 16-17. Central Statistics Office has
16-17 estimated the GDP to grow at 7.1% for 201617, on an annual
] [ basis.
2016-17 7.1%
The government's final consumption expenditure remained
the major driver of the growth in FY17, with inflation remaining
under control for most part of the year on account of low
17 commodity prices. Investments and exports however remained
subdued during the year. Agriculture is likely to register robust
growth for the 2016-17 by 4.4% against previous year's 0.8%
(GVA CSO) backed by good monsoon during the year.
0.8% 2016-17 4.4% [ ]
A major drive was undertaken for the revival of banking sector
(]-)
in 2016-17 including fresh issue of licenses for setting up small
2016-17 banks and payment banks.
\ ] 1.2 Outlook for 2017-18
]
World growth is expected to rise from 3.1 percent in 2016 to 3.5
1.2 2017-18 percent in 2017 and 3.6 percent in 2018(WEO, April 2017) on
] [ 2016 account of stronger activity and robust global demand
3.1 2017 3.5 2018 [ On the domestic front, GDP growth is expected to rebound to
3.6 (, 2017) 7.2% in 2018 and 7.7% in 2019 (IMF), with inflation expected
to be around 5 per cent. Revival of subdued manufacturing
5
and exports would remain the major concerns during FY18.
2018 7.2% 2019 7.7% However remonetisation and lower borrowing costs are
() 18 expected to revup the private consumption expenditure.
The various proposals in the Union Budget 2017-18 with
] regards to stepping up of capital expenditure; boosting the rural
economy and affordable housing, are expected to be growth
] [, stimulating. Replacement of the existing multiple indirect taxes
with uniform goods and service tax (GST) across India with
] 2017-18
effect from July 1, 2017, is set to give a major boost to India's
growth and competitiveness.
01 ], 2017
Abolition of the Foreign Investment Promotion Board (FIPB)
(]) ] and reforms in FDI policy have been taken to attract higher
() foreign direct investment (FDI).The strong pace of expansion
\\ () in global trade and output are expected to ease the external
] [ demand constraint on domestic growth prospects
Banking sector is also expected to be benefitted by the passing
of the Bankruptcy Law passed for taking remedial action
against defaulters
\
2. Performance Highlights 2016-17
9
Annual Report 2016-17
10
Jeeef<e&ke efjHees& 2016-17
2.5 Merchant Banking:
2.5
The Bank handled 70 issues (previous year 126 issues) of
] ] () Commercial paper amounting to Rs 30170 crore (previous
. 30170 ( .54060 year Rs 54060 crore) for its clients as an Issuing and Paying
) ] 70 ( 126 ) Agent (IPA) during the year.
\ . 2.6 Borrowings:
2.6 The borrowing of the Bank as on 31st March 2017 stood at
31 \ 2017 , . Rs 8136.65 crore including re-finance as under;
8136.65 ; Amount Amount
Percentage
Particular as at as at
31.03.2016 (+/-) of (+/-)
31.03.2017 31.03.2017 31.03.2016
Total Borrowing 8136.65 9228.10 (0.12)
8136.65 9228.10 (0.12) Borrowing - CBLO 0 74.54 (1.00)
- 0 74.54 (1.00) Of which
Refinance 2892.95 4046.17 (0.29)
] 2892.95 4046.17 (0.29) from
420 893.34 (0.53) NABARD 420 893.34 (0.53)
324.25 331.27 (0.02) EXIM BANK 324.25 331.27 (0.02)
RBI 0 500 (1.00)
{ 0 500 (1.00) NHB Refinance 277.89 370.52 (0.25)
\ 277.89 370.52 (0.25) Mudra Refinance 370.81 370.81 0.00
370.81 370.81 0.00 SIDBI 1500 1580.23 (0.05)
Borrowings in the
1500 1580.23 (0.05) form of bonds &
5225 5100 0.02
\ ] debentures capital
5225 5100 0.02
instruments
Borrowings
18.65 7.34 1.54 18.65 7.34 1.54
outside India
0.05 0.05 0.00 Others 0.05 0.05 0.00
\\ ] The Bank does avail refinance depending upon its liquidity
, position, deployment of funds and also cost of such refinance
. despite its eligibility to avail refinance at higher level.
2.7 Depository Services
2.7
Bank is Depository Participant (DP) of Central
1999 Depository Services of India Ltd. (CDSL) since
() () . September 1999.
12
Jeeef<e&ke efjHees& 2016-17
31.03.2016 .7403.05 31.03.2017 The Banks Net Worth stood at Rs.5486.47 crore as on
. 5486.47 . 31.03.2017 as against Rs 7403.05 crore as on 31.03.2016.
2.15 : 2.15 Dividend : Your Directors do not propose any dividend for the
FY 2016-17, as the Bank has incurred loss.
\ 2016-17
. 3 .1 Branch/ATM Network:
13
Annual Report 2016-17
14
Jeeef<e&ke efjHees& 2016-17
Compassionate Appointments - A Scheme for
- Compassionate Appointments / Payment of Ex-gratia lump-
sum amount to /of heirs of employees dying in harness or
\ ` '/ retiring due to incapacitation framed as per the directives of
] Government of India, has been implemented. The details of
. 2016-17 compassionate appointments and payment of Ex-gratia lump-
sum amount for the year 2016-17 is as under :
16
Jeeef<e&ke efjHees& 2016-17
17
Annual Report 2016-17
18
Jeeef<e&ke efjHees& 2016-17
19
Annual Report 2016-17
20
Jeeef<e&ke efjHees& 2016-17
2 (18 669.36 4.89 2 Maha Super Car Bank has launched scheme 669.36 4.89
Loan Scheme and for purchase of New four
) Mahabank vehicle Wheeler i.e. Car, Jeep, Multi
] (/ Loan scheme Utility vehicles (MUVs),
) SUV etc. for personal use.
, ], (i.e. not for hiring/ferrying
passengers) for individuals
] (), (18 years and above).
] . 3 Model Education Loan Bank is implementing Model 891.05 5.87
Scheme Education Loan Scheme
3 891.05 5.87 as per IBA guidelines
] ] and provides hassle free
Education loan to all
meritorious and deserving
\\ / Students (Indian National)
for pursuing higher studies
( ) ^^ /education in India and
abroad
4 Mahabank Top up In order to extend additional 67.72 2.00
Loan Scheme credit support to existing
4 67.72 2.00 housing loan borrowers as
well takeover of existing
housing loan of other banks
] with additional facility of Top-
up Loan, Bank has launched
Mahabank Top Up loan
`` Scheme.
Under this scheme credit
]'' is extended for repair /
] renovation / furnishing of
/ ]/ , house, childrens education,
\\ , \\ , Marriage of Children,
Medical treatment, buying a
\ \, - vehicle or hi-tech gadgets
] etc.
] . 5 Mahabank Gold Loan With a view to tap the 96.58 2.80
Scheme potential of gold loans as a
lucrative asset and to cater
5 96.58 2.80 to the needs of meeting
other personal expenses,
whatsoever which include
] \ ] , personal expenditure of
\\ , \ , varied needs like marriage,
] higher education, medical
emergencies, business
, travel etc, Bank has
26.09.2014 launched a retail loan
" product as Mahabank
]" . Gold Loan Scheme w.e.f.
26.09.2014.
6 283.21 0.68 6 Mahabank Aadhar To cater to the needs 283.21 0.68
\, , Loan Scheme of our existing pension
] \, account holders in meeting
their personal expenses,
pilgrimage, medical,
`` ]'' domestic needs etc. Bank
. has re-launched Mahabank
Aadhar Loan Scheme.
5.2
5.2 Centralized Processing of loans
33 \ / ]
] ^^ Bank has established Centralized Processing Cells for retail /
commercial advances at all its 33 Zones for hassle free & due
\ . diligence of loans with aim to improve turn around time.
5.3 ( ) 5.3 Door Step Banking Services
\\ Bank has introduced Door Step Banking Services for its High
End Customers and the services include Corporate and Retail
( ) \ Cash pickup and delivery & Cheque Collection Services, at
. Clients Doorstep.
21
Annual Report 2016-17
22
Jeeef<e&ke efjHees& 2016-17
23
Annual Report 2016-17
24
Jeeef<e&ke efjHees& 2016-17
Maharashtra Gramin Bank has crossed the benchmark of
(]) .11,000 Rs.11000 Cr Total Business and Rs.100 Cr Operating Profit
.100 \ by achieving Rs.11899 Cr Total Business and Rs.118.94 Cr
31.03.2017 .11899 Operating Profit as on 31.03.2017 with a YOY growth rate
.118.94 \ of 30.75%
. 30.75% . The percentage of CASA to total deposit is 58.94%.Operating
] \ -\ () ] profit of MGB is Rs. 118.94 Crore (growth of 30.75%). During
58.94% . \ this year 2016-17, MGB has grown by 20.07% in total deposits
.118.94 (30.75% ). 2016-17 and 11.32 % in advances.
, ] 20.07% Under Pradhan Mantri Jandhan Yojana surveys of all allotted
11.32% . 898 SSAs and 80 wards were conducted for identification of
]- ] 898 households having no bank account. The Bank has covered
80 all allotted SSAs by engaging BCAs. Total 8.54 lakh accounts
. have been opened during the PMJDY campaign period and
RuPay ATM debit cards have been issued to 7.45 lakh
. ]- ] 8.54 account holders. Maharashtra Gramin Bank has actively
7.45 `- participated in the PMJJBY, PMSBY and APY as well as the
' ] . ]], PMMY scheme declared by GoI, DFS.
,
Bank has achieved most of the Targets under MOU_DAP
] for the financial year 2016-17 in the major Key performance
. parameters.
2016-17
- TARGET
SR PERFORMANCE ACTUAL AS ON
FOR THE FY
NO PARAMETER
2016-17
31.03.2017
25
Annual Report 2016-17
27
Annual Report 2016-17
28
Jeeef<e&ke efjHees& 2016-17
. 31.03.2017 - ( /
Name Position held )
.
Sr. / Remarks (nature of appointment in the
No. No. of Bank / other Companies)
member
ship in Sub -
Commit-
No. of tees of the /
equity shares/ Bank No. of
convertible
Director- No. of
instruments ship held
of the Bank Member-
in other ship/
held as on Companies
31.03.2017 Chairman-
i.e. Other ship held in
than the Sub Com-
Bank mittees of
the Board
in Other
Companies
1 . . 11 26.09.2016
Shri R.P.Marathe NIL 11 NIL NIL
Managing Director &
CEO Appointed as the Managing Director &
CEO of the Bank w.e.f. 26.09.2016 by the
Central Government.
29
Annual Report 2016-17
2 . . 13 01 31.12.2013
Shri. R.K. Gupta Executive Director NIL 13 01 NIL
. ]
. . .
Appointed as the Executive Director w.e.f.
31.12.2013 by the Central Government.
He is also the Chairman of the Board of
the Maharashtra Executor and Trustee
Company Pvt. Ltd.
3. . . 12 31.03.2017
Shri A.C.Rout Executive Director NIL 12 Nil NIL
.
Appointed as the Executive Director w.e.f.
31.03.2017 by the Central Government.
4 (- 07 02 20.07.2012
Shri Ateesh Singh ) NIL 07 02 NIL . ]
\ ]
Director(Non-Exec-
utive) Government
Nominee .
Nominated as a Director w.e.f. 20.07.2012
by the Central Government. He is Director
on the Board of Jammu & Kashmir De-
velopment Finance Corporation Limited &
Irrigation and Water Resources Finance
Corporation Limited.
5 ]. (- 05 10.06.2014
Shri G. Sreekumar ) NIL 05 NIL NIL .
{ Nominated as a Director w.e.f. 10.06.2014
Director (Non-Execu- by the Central Government.
tive) RBI Nominee
6 \ \ 200 08 02 27.06.2014
Shri Premchandra Amolak- (- ) 200 08 02 NIL \ .
chand Sethi
] -]
Director (Non-Exec- .
utive ) Representing Elected as Shareholder Director w.e.f.
Shareholders 27.06.2014. He is also Director on the
Board of Aarti Industries Ltd. and Pro- G
Agro Pvt. Ltd.
7 . 100 05 01 30.06.2015
Shri R. (- ) 100 05 01 NIL \ .
Thamodharan
Director (Non-Exec- ]
utive ) Representing
Shareholders .
Elected as Shareholder Director w.e.f.
30.06.2015.
He is Nominee Director on the Board of
Tidel Park Ltd., representing LIC of India
8 . \ 05 28.01.2016
(- ) NIL 05 NIL NIL .
Dr. Archana Ravindrarai Director (Non-Exec- Nominated as a Director w.e.f. 28.01.2016
Dholakia utive) by the Central Government.
9 06 04 26.07.2016
Shri Deendayal Agrawal NIL 06 04 NIL
(- ) .
Director (Non-Exec- .
utive) Nominated as a Director w.e.f. 26.07.2016
by the Central Government. He is Director
on the Board of Four Foundations.
30
Jeeef<e&ke efjHees& 2016-17
31
Annual Report 2016-17
32
Jeeef<e&ke efjHees& 2016-17
33
Annual Report 2016-17
34
Jeeef<e&ke efjHees& 2016-17
31 \ 2017 \ The composition of the Committee as on 31st March, 2017 is as
under:
i. . .
ii. . . i Shri R.P.Marathe Chairman
iii. . . ii Shri R.K. Gupta Member
iv. ]. iii Shri A.C. Rout Member
v. . . iv Shri G. Sreekumar Member
vi. .
v. Shri P.A. Sethi Member
4.2
vi. Shri R.Thamodharan Member
{
() . ] 4.2. Audit Committee of the Board:
Pursuant to the directives of Reserve Bank of India, Audit
Committee of Board of Directors (ACB) is constituted. The
) () delegated functions of the Committee are as under:
\ - .
a) ACB provides direction as also oversees the operation of
the total audit function of the Bank. Total audit function
, \ { implies the organization, operationalisation, quality
/ . control of internal audit and inspection within the Bank
and follows up on the statutory / external audit of the Bank
) and inspection of RBI.
/ ,
b) As regards internal audit, ACB reviews the internal
.
inspection/ audit function in the Bank adequacy of the
] system, its quality and effectiveness in terms of follow up.
. ACB also reviews inspection reports of specialized and
) - ] , extra large branches and all branches with unsatisfactory
ratings.
- ,
, c) It specifically focuses on the follow up of Inter-Branch
Adjustment Accounts, Un-reconciled long outstanding
. entries in Inter-Bank Accounts and Nostro Accounts,
) Position of balancing of books at various branches, frauds
{ and all other major areas of housekeeping.
. d) ACB obtains and reviews quarterly reports from the
Compliance Officer relating to implementation of various
.)
Government and RBI guidelines.
e) ACB monitors the reports under concurrent audit,
{ .
compliance of observations of statutory audit and RBI
\) inspection.
// f) ACB approves the appointment of Statutory Central
Auditors and also interacts with the Statutory Central
\ . () Auditors before finalization of the annual / half-yearly /
. quarterly accounts and reports. It also follows up all the
issues raised in the Long Form Audit Report (LFAR).
)
g) ACB to take care of other issues entrusted to it under
( ) , 2015 SEBI (Listing Obligations and Disclosure Requirements)
. Regulations, 2015.
10 . During the year, the ACB met 10 times and the dates of the
meetings are as under:
11.05.2016 12.05.2016 28.06.2016 12.08.2016 02.09.2016 11.05.2016 12.05.2016 28.06.2016 12.08.2016 02.09.2016
25.10.2016 05.11.2016 02.01.2017 30.01.2017 28.02.2017
25.10.2016 05.11.2016 02.01.2017 30.01.2017 28.02.2017
The details of attendance of the Directors at the meetings
of the Committee held during their respective tenure are as
under:
Name of the Direc- Period Meetings Meetings
tor held during Attended
their tenure
Shri Sanjeev Jain 01.04.2016 to 04 04
] ] 01.04.2016 04 04
18.08.2016
18.08.2016 Shri R. Athmaram* 01.04.2016 to 06 06
. * 01.04.2016 06 06 31.10.2016
31.10.2016
35
Annual Report 2016-17
36
Jeeef<e&ke efjHees& 2016-17
31 \ 2017 \ The composition of the Committee as on 31st March, 2017 is as
under:
i. . .
i. Shri R.P.Marathe Chairman
ii. . .
ii. Shri R.K.Gupta Member
iii. . .
iii. Shri A.C. Rout Member
iv.
iv Shri Deendayal Agrawal Member
v. . .
v. Shri P.A. Sethi Member
4.4
4.4 Stakeholders Relationship Committee:
/
The Stakeholders Relationship Committee was formed by the
. Board to oversee the grievances redressal of Shareholders/
04 . Investors of the Bank.
12.05.2016 02.09.2016 08.12.2016 30.01.2017 The Committee met 04 times during the year as under.
37
Annual Report 2016-17
03.10.2016 13.10.2016 27.10.2016 08.12.2016 27.02.2017 The details of attendance of the Directors at the meetings was
as under
38
Jeeef<e&ke efjHees& 2016-17
39
Annual Report 2016-17
40
Jeeef<e&ke efjHees& 2016-17
41
Annual Report 2016-17
42
Jeeef<e&ke efjHees& 2016-17
5. 5. Remuneration of Directors:
The Bank is governed by the Banking Regulations Act,
1949, ] ( 1949, Banking Companies (Acquisition and Transfer of
) 1970 ( Undertakings) Act, 1970 and Nationalized Banks (Management
) ], 1970 - & Miscellaneous Provisions) Scheme, 1970. The Bank does
\ not pay any remuneration to the Non-Executive Directors apart
from sitting fees as fixed by the Government of India and travel
expenses, on actual basis.
/
The Chairman and Managing Director/MD & CEO and two
(3 ) Executive Directors (3 whole time directors) are being paid
] remuneration by way of salary as per rules framed by the Govt.
) 2016-17 / of India.
A) The details of salaries paid to Chairman & Managing Director/
MD & CEO and Executive Directors during the year 2016-17
() are as under:
1 14,72,063.10 Sr. No. Name Designation Amount (in Rs.)
2 . . 13,45,074.32 1 Shri Sushil Muhnot Chairman & Managing 14,72,063.10
Director
3 . 14,73,216.22
2 Shri R.P. Marathe Managing Director 13,45,074.32
4 .. 24,46,118.68 & CEO
3 Shri R. Athmaram Executive Director 14,73,216.22
5 . . *
4 Shri R.K. Gupta Executive Director 24,46,118.68
* . . 31.03.2017
5 Shri A.C. Rout* Executive Director Nil
*Shri A.C. Rout was appointed as the Executive Director of the
) 2016-17 ] Bank w.e.f 31.03.2017
.
B) No Performance linked Incentive was paid to the Directors
) . during the Financial Year 2016-17:
2016-17 - C) The Bank does not have any stock options policy.
( The total Sitting Fee paid to the Non-Executive Directors during
{ the year 2016-17 is as under: (No sitting fee is payable to
) Whole Time Directors and Director representing Government
of India and official Director representing Reserve Bank of
. (.) India).
43
Annual Report 2016-17
44
Jeeef<e&ke efjHees& 2016-17
6.2 29.06.2016 6.2 In the Thirteenth Annual General Meeting held on 29.06.2016,
following Special Resolution was passed:
.
a. To raise capital through FPO/ Rights issue/ QIP etc., upto Rs.
. . 1000/- // ] . 1,000/- Crore.
6.3 2016-17 ] 6.3 No special Resolution was passed through Postal Ballot during
. the financial year 2016-17.
6.4 , - 6.4 The Ministry of Finance, Government of India had sent an
]. authorized representative of President of India, to attend the
General Meetings of the Bank from time to time.
7.
7. Disclosures:
7.1 /,
7.1 Other than those in the normal course of banking business,
, , the Bank has not entered into any materially significant related
] party transactions with its Promoters / Directors, Management,
. their subsidiaries, or relatives, etc. that may have potential
conflict with the interests of the Bank at large. Bank has
www.bankofmaharashtra.in . adopted the policy on Related Party Transactions and
Determination of Material subsidiaries and same are available
7.2 ] ] on Banks website i.e. www.bankofmaharashtra.in.
. , \] 7.2 During the year under review, the Bank has complied with
, ] ] all requirements regarding capital market related matters
, and no penalties were imposed nor were any strictures
- \] () passed against the Bank by Regulatory authorities, viz. SEBI,
Stock Exchanges or any other statutory authorities for non-
\] . () 06/05 compliance of any law, guidelines and directives or any matter
, 2015 .1,42,000/- related to Capital Market during last three years except the
. . 28.01.2016 penalty imposed by the BSE Ltd and National Stock Exchange
. of India Ltd., vide their communication dated 06th/05th October,
2015 to the tune of Rs.1,42,000/- for non-appointment of
7.3 \\ . Woman Director. However, Woman Director was appointed by
7.4 ( ) 2015 the Central Government w.e.f 28.01.2016.
. 7.3 The Management Discussion and Analysis forms part of the
] , Board of Directors Report.
( ) 7.4 Compliance with the provisions of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
2015 -
. The Bank has complied with all the mandatory requirements
of provisions of SEBI (Listing Obligations and Disclosure
) - Requirements) Regulations, 2015 to the extent applicable
i. ( ) and has also taken steps to comply with other non-mandatory
requirements.
2015 / ,
- ( a) Following mandatory requirements are complied with:
) i. CEO/CFO Certification as per provisions of SEBI (Listing
] Obligations and Disclosure Requirements) Regulations, 2015,
the Managing Director and Chief Executive Officer & General
Manager FM&A (Chief Financial Officer) of the Bank have
. certified to the Board that the financial statements do not
, contain an materially untrue statement or omit any material
. fact or contains statement that might be misleading and that
. ] , the statements together present a true and fair view of the
Banks affairs and are in compliance with existing Accounting
Standards, applicable Laws and Regulations. The certificate
ii ] forms part of the Annual Report.
. ii. There is no materially significant Related Party Transaction
. that has potential conflict with interests of the Bank at large.
iii ] The Related Party Transactions are disclosed in the Notes on
Accounts in compliance with RBI Guidelines in this regard.
, ] .
iii Whistle Blower policy is made a part of the Fraud Risk
iv
Management Policy approved by the Board.
www.bankofmaharashtra.in .
-18 . iv The Banks policy on Related Party transaction is posted on
Banks website i.e. www.bankofmaharashtra.in. The details of
v \ related party transactions are mentioned under AS-18.
www.bankofmaharashtra.in . v. Code of Conduct for Directors and Senior Management is
posted on Banks website i.e. www.bankofmaharashtra.in.
45
Annual Report 2016-17
vi. , . vi. At present, the Bank does not have any material
subsidiary.
vii
vii Training of Board members:
.. //
] Sr. No. Name of Director Particulars Period No. of
of Program/ Hours
1 \ . , 26.09.2016 12 Training/ spent
[ 27.09.2016 Venue
1 Dr. Archana R. Seminar 26.09.2016 to 12
2 29.11.2016 12 Dholakia on Banking 27.09.2016
Technology
30.11.2016 organized
] by IDRBT at
] Hyderabad
2 Shri Deendayal Boards of 29.11.2016 to 12
3 . . 29.11.2016 12 Agrawal Commercial 30.11.2016
b a n k s
30.11.2016 organized by
] CAFRAL at
] Bangalore.
3 Shri P.A. Sethi Boards of 29.11.2016 to 12
4 12.01.2017 6 Commercial 30.11.2016
b a n k s
organized by
\\ CAFRAL at
. Bangalore.
( ) 2015 4 Shri Deendayal Interaction 12.01.2017 6
Agrawal meeting of CA
() directors by IMI
] . at Delhi.
) - - The Certificate issued by Statutory Central Auditors (SCAs)
in respect of compliance with the provisions of SEBI (Listing
.. -
Obligations and Disclosure Requirements) Regulations, 2015
. to the extent applicable forms part of the Annual Report.
- (
\ \ ) b) Following non-mandatory requirements are complied
with:
1970
] Sr. Non-mandatory Status of compliance
No. Requirements
9 (3)
A. The Board The composition of the
(i)
A non-executive Board of Directors of the
] . Bank is governed through
chairperson may be
\ entitled to maintain a Banking Companies
/ chairpersons office (Acquisition & Transfer of
. at the listed entitys Undertakings) Act, 1970,
expense and also where all the Directors are
. / / appointed / nominated by
allowed reimbursement
: Government of India except
of expenses incurred
in performance of his Directors to be elected from
] \ duties. amongst Shareholders other
] ]. than Central Government
u/s 9(3)(i) of the Act.
]
B. Shareholder Rights The quarterly/year to date/
, Annual Financial Results
A half-yearly declaration
] are submitted to NSE
of financial performance
] ] including summary of & BSE & published in
. - the significant events in Newspapers and placed on
last six-months, may be Banks website. As such,
sent to each household information to Shareholders
\ is not sent individually.
of shareholders.
C. Modified opinion(s) in There is no qualification in
audit report the Auditors report of the
.
The listed entity may Bank.
move towards a regime
of financial statements
with unmodified audit
opinion.
46
Jeeef<e&ke efjHees& 2016-17
47
Annual Report 2016-17
May, 2016 31.80 27.50 338383 31.25 27.40 1782473 26837 25058
\\ \\ \\ June, 2016 34.85 27.50 1296991 34.90 27.40 5834263 27105 25911
, 2016 31.00 28.75 325758 30.90 28.95 1627545 26101 24523 July, 2016 37.40 32.35 1157103 37.40 32.40 5531133 28240 27034
, 2016 31.80 27.50 338383 31.25 27.40 1782473 26837 25058 August, 2016 32.85 30.05 519597 32.90 30.15 1991710 28532 27628
], 2016 34.85 27.50 1296991 34.90 27.40 5834263 27105 25911 September, 2016 34.15 29.00 607437 34.2 29.80 2318488 29077 27717
], 2016 37.40 32.35 1157103 37.40 32.40 5531133 28240 27034
October, 2016 31.95 30.00 322042 31.70 29.80 1452178 28478 27548
, 2016 32.85 30.05 519597 32.90 30.15 1991710 28532 27628
November, 2016 32.50 25.00 783809 32.45 23.20 3676595 28030 25718
, 2016 34.15 29.00 607437 34.2 29.80 2318488 29077 27717
December, 2016 31.50 28.10 328145 32.00 28.10 1512759 26769 25754
, 2016 31.95 30.00 322042 31.70 29.80 1452178 28478 27548
January, 2017 33.70 28.40 747005 33.60 28.50 2917208 27980 26447
, 2016 32.50 25.00 783809 32.45 23.20 3676595 28030 25718
, 2016 31.50 28.10 328145 32.00 28.10 1512759 26769 25754 February, 2017 38.70 32.10 2297775 38.70 31.30 11798581 29065 27590
], 2017 33.70 28.40 747005 33.60 28.50 2917208 27980 26447 March, 2017 35.90 32.15 1180370 35.95 32.15 7839558 29688 28716
48
Jeeef<e&ke efjHees& 2016-17
49
Annual Report 2016-17
172869 100.00 1168333708 100.00 (* Including 95,35,24,561 shares held by the Government of
India)
(* 95,35,24,561 )
9.11 Outstanding Global depository receipts or American
9.11 ] ] depository receipts or warrants or any convertible
, instruments, conversion date and likely impact on equity:
Not applicable
9.12 ] ] ] 9.12 Commodity price risk or foreign exchange risk and
- \ 18 . hedging activities:
Disclosure is provided in Schedule No. 18 - Notes to Accounts.
9.13 ()
() /] 9.13 National Electronic Clearing Services (NECS):
, ] National Electronic Clearing Services (NECS) is a novel
] ] . method of payment of dividend/interest etc. where the amount
due to the investor can be directly credited to his/ her Bank
] . account. The Bank offers this service to its shareholders with
/ () an option to avail the facility for the direct credit of the dividend
\. in their bank account. However, the Bank account of the
shareholders should be in Centralized/Core Banking Solution
(CBS) branch of the Bank.
, ]
The NECS mandate form is enclosed to the AGM Notice, which
] ] () ] ]. ]
may be sent to the Registrar and Share Transfer Agent (RTA)
] by the shareholders, who are holding shares in physical form.
. Shareholders holding their shares in dematerialized form may
contact their respective Depository Participants for updating
their bank account details.
] \ .
Shareholders maintaining account with the Bank are requested
9.14 to provide to the Bank, CBS Bank account details to credit their
] 2009-10, 2010-2011, 2011-12, accounts towards payment of dividend
2012-13, 2013-14 2014-15 9.14 Unpaid Dividends:
,
The Shareholders who have not encashed the dividend
]/ . warrants for the financial years 2009-10, 2010-11, 2011-12,
( ) 1970 10 2012-13, 2013-14 and 2014-15 may contact the Registrar /
() 2006 (] 16.10.2006 Bank on the above address for revalidation of the warrants
and for necessary assistance for the payment thereof.
) ]
In terms of Section 10B of the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970 and Financial
, Institutions Laws (Amendment) Act 2006, (which has come
1956 205 (1) / , 2013 125 into force from 16.10.2006), any amount of dividend which is
`` () transferred to unpaid dividend account and remains unpaid
] / unclaimed for a period of seven years from the date of
\. such transfer shall be transferred to Investor Education and
50
Jeeef<e&ke efjHees& 2016-17
2003-04, 2004-05, 2005-06, Protection Fund (IEPF) established under Section 205C(1) of
the Companies Act, 1956/Section 125 of the Companies Act,
2006-07, 2007-08 2008-09 /
2013 and thereafter, no claim for payment of dividend shall lie
in respect thereof either to the Bank or to IEPF.
. 2009-10
In line with the above provisions, all such amounts of dividend
/ remaining unpaid / unclaimed from the financial year 2003-
]. 04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 have
9.15 been transferred to Investor Education and Protection Fund.
The details are displayed on the Banks website. The dividend
31.03.2017 31.03.2016 for the year 2009-10 remaining unclaimed/ unpaid will be
transferred to the said fund within the prescribed limits.
116,83,33,708 100.00 116,83,33,708 100.00 The Ministry of Corporate Affairs, vide its communications
No. 17/95/2011 CL-v/Cir No.17 dated 21.04.2011 and No.
9.16 18/95/2011, dated 29.04.2011 has allowed sending the
21.04.2011 communications to the shareholders by electronic mode, as
.17/95 /2011 -/. .17 29.04.2011 matter of Green Initiative. Falling in line with this, the Bank
has sent letters/mails to the shareholders, requesting them to
. 18/95/2011 ] inform/update their email Ids to enable the Bank to send the
. , / ] notices/communications/documents to the shareholders by
- ] / , electronic mode. The notices of the Thirteenth Annual General
\//] Meeting of the Shareholders of the Bank, held on 29th June,
] ] . 29 ] 2016 2016 were sent to 63142 shareholders by electronic mode.
\ 63142
] .
Report of the Board of Directors on Corporate
( I declare that the Board has laid down the Code of Conduct for all
) 2015 Board Members and Senior Management Personnel of the Bank
\ ( ) . in compliance with SEBI (Listing Obligations and Disclosures
\ . Requirements), Regulations, 2015. The Code of Conduct is posted on
the website of the Bank.
I further declare that all Board members and Senior Management
31 \, 2017 \ Personnel of the Bank have affirmed their compliance with the Code
. of Conduct during the year ended 31st March, 2017.
For Bank of Maharashtra
(. . ) (R.P. Marathe)
Managing Director and CEO
4 2017 Date: 4th May, 2017
Place: Pune
51
Annual Report 2016-17
(2) \ (2) These statements together present a true and fair view
] , ] of the Banks affairs and are in compliance with existing
. accounting standards, applicable laws and regulations.
52
Jeeef<e&ke efjHees& 2016-17
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
53
Annual Report 2016-17
Deve oseleeSb SJeb heeJeOeeve Other Liabilities & Provisions 5 4754,96,65 3952,25,99
Deeeqmleeeb ASSETS
vekeoer Deewj Yeejleere efjpeJe& yeQke ceW DeefleMes<e
Cash and Balances with Reserve Bank of India 6 15274,71,92 8382,28,66
yeQkeeW ceW Mes<e, ceebie leLee Deuhe metevee hej eeHe Oeve
Balances with Banks, Money at call & short notice 7 1367,30,17 937,86,23
. . . . . .
A.C. ROUT R. K. GUPTA R.P. MARATHE
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR MANAGING DIRECTOR & CEO
. \ . . . . ].
Dr. ARCHANA R. DHOLAKIA R. THAMODHARAN P. A. SETHI DEENDAYAL AGRAWAL G. SREEKUMAR
Director Director Director Director Director
] . \.
, . . , . . , ..
ATEESH SINGH PRADEEP MISHRA SANJAY RUDRA R. H. PHADNIS
Director Asst.Gen. Manager, FM&A Dy. Gen. Manager, FM&A Gen. Manager, FM&A
]. , () .
Shri Ateesh Singh and Shri G. Sreekumar, (Directors) did not sign since, they were granted leave of absence.
54
Jeeef<e&ke efjHees& 2016-17
Gheeg&e meboe|Yele Devegmetefeeeb ueeYe / neefve KeeleeW kes DeefYeVe Yeeie nQ.
The Schedules referred to above form an integral part of the Profit and Loss Account
nceejer meceefoveebefkele mebueive efjhees& kes Devegmeej As per our report of even date attached.
ke=les heejKe Sb[ kebheveer ..
SHeDeejSve: 001475meer SHeDeejSve: 110540 - 301178 ,
meveoer uesKeekeej meveoer uesKeekeej
for Parakh & Co. : 101678 / 100068
for A.R. Sulakhe & Co.
FRN: 001475C for KOTHARI & Co
FRN: 110540W
Chartered Accountants FRN - 301178E for CMRS & Associates,LLP
Chartered Accountants Chartered Accountants FRN: 101678 W/ W100068
Chartered Accountants
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
mLeeve : HegCes Place : Pune
efoveebke : 4 ceF&, 2017 Date : 4th May, 2017
55
Annual Report 2016-17
Je<e& kes oewjeve Je=ef Additions during the year __ 1168,33,37 105,15,08 1168,33,37
56
Jeeef<e&ke efjHees& 2016-17
57
Annual Report 2016-17
*vees : Deve oseleeDeeW ceW ` NIL keer efveJeue DeemLeefiele kej oseleeSb Meeefceue nQ (iele Je<e& efveJeue DeemLeefiele kej oseleeSb ` 203,62,387)
* Note : Others liabilities include Net Deferred Tax Liability of ` NIL (Previous Year Net DTL ` 203,62,387 )
Devegmeteer - 6 : vekeoer Deewj Yeejleere efjpeJe& yeQke ceW DeefOeMes<e (` npeej ceW)
SCHEDULE - 6 : CASH AND BALANCES WITH RESERVE BANK OF INDIA ( ` in thousands)
31 ceee& 2017 keer efmLeefle 31 ceee& 2016 keer efmLeefle
kes Devegmeej (eeuet Je<e&) kes Devegmeej (iele Je<e&)
As on 31st March, 2017 As on 31st March, 2016
(Current Year) (Previous Year)
I. neLe ceW vekeoer (FmeceW efJeosMeer kejWmeer vees Meeefceue nwW)
Cash in hand (including foreign currency notes) 659,26,06 818,97,64
II. Yeejleere efjpeJe& yeQke ceW DeefOeMes<e
Balances with Reserve Bank of India
i) eeuet KeeleeW ceW
In Current Accounts 7165,45,86 6363,31,02
ii) Deve KeeleeW ceW
In other Accounts 7450,00,00 14615,45,86 1200,00,00 7563,31,02
pees[ TOTAL (I Je II) 15274,71,92 8382,28,66
58
Jeeef<e&ke efjHees& 2016-17
Devegmeteer - 7 : yeQkeeW ceW Mes<e leLee ceebie Deewj DeuHe metevee Hej eehe Oeve (` npeej ceW)
SCHEDULE - 7 : BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE ( ` in thousands)
59
Annual Report 2016-17
60
Jeeef<e&ke efjHees& 2016-17
*FmeceW keee& heieefle hej hetbpeer ` Metve Meeefceue nw (iele Je<e& ` Metve) *Includes Capital Work in Progress ` Nil ( Previous Year ` Nil)
61
Annual Report 2016-17
* Jeeeoe efJeefvecee mebefJeoeDeeW kes mebyebOe ceW Deekeeqmceke oseleeDeeW ceW efyeeer Je Kejero oesveeW hekeej keer mebefJeoeSb Meeefceue nQ.
* Contingent liabilities in respect of forward exchange contracts include both sale and purchase contracts.
62
Jeeef<e&ke efjHees& 2016-17
IeeSb : Yetefce, YeJeveeW Deewj Deve DeeeqmleeeW kes efJeee hej neefve
Less : Loss on sale of land,buildings and other assets 1,77,42 -13,55 70,05 -18,48
V. efJeefvecee mebJeJenejeW hej ueeYe
Profit on Exchange Transactions 101,90,75 77,82,76
63
Annual Report 2016-17
VII. uesKee hejer#ekeeW keer Heerme Deewj Jee (FmeceW MeeKee uesKee hejer#ekeeW keer Heerme
Deewj Jee Meeefceue nQ)
Auditors' fees and expenses (incl. branch auditors' fees and 16,83,58 18,13,86
expenses)
VIII. efJeefOe heYeej
Law Charges 16,63,55 13,99,95
XI. yeercee
Insurance 131,70,87 119,88,06
64
Jeeef<e&ke efjHees& 2016-17
SCHEDULE 17 SIGNIFICANT ACCOUNTING POLICIES
\ 17 -
1. Accounting Conventions:
1.
1.1 The financial statements are prepared under the historical
1.1 ] , cost conventions except as otherwise stated and conform to
the Generally Accepted Accounting Principles (GAAP) which
(]) ] \ include statutory provisions, practices prevailing within the
, / { () , Banking Industry in India , the regulatory / Reserve Bank
() ] / of India (RBI) guidelines, applicable Accounting Standards
. / Guidance Notes issued by the Institute of Chartered
Accountants of India (ICAI).
1.2
1.2 The preparation of financial statements requires the
management to make estimates and assumptions
( ) considered in the reported amount of Assets and Liabilities
\ ]. \ (including contingent liabilities) as of the date of financial
. statements and reported income and expenses for the
period under report. Management is of the view that the
1.3 ] \ \ 6.1 , ] estimates used in the preparation of financial statements
\ . are prudent and reasonable.
1.4 ] , { 1.3 Revenue and costs are accounted for on accrual basis
- except as stated in para 6.1 below.
.
1.4 The accounting policies with regard to Revenue
2. Recognition, Investments and Advances are in conformity
with the prudential accounting norms and guidelines issued
2.1 () by Reserve Bank of India from time to time.
. 2. Foreign Exchange Transactions:
() 2.1 The foreign currency transactions are translated at the
/ weekly average closing rates for the preceding week as
. published by Foreign Exchange Dealers Association of
India (FEDAI). Revaluation of foreign currency assets and
2.2 liabilities as on Balance Sheet date is done at the closing
{ exchange rate published by FEDAI and the resultant profit /
() - loss is accounted for in the Profit & Loss Account.
01
2.2 Outstanding Forward Foreign Exchange Contracts are
/] . stated at contracted rates and revalued / marked to market
/ { / as on quarterly basis and on Balance Sheet date at the
exchange rates published by FEDAI for specified maturities
` ' ` ' by discounting the same at the applicable MIFOR rate
. published by Fixed Income Money Market and Derivatives
Association of India [FIMMDA] - Reuter, i.e. on PV01 basis.
2.3 ] - The resulting profit / loss, on revaluation, is recognized in
. the Profit & Loss Account in accordance with RBI / FEDAI
2.4 { - guidelines and the effect is taken to Other Assets in case
of gain or to Other Liabilities in case of loss.
] .
2.3 Contingent Liabilities on account of Guarantees and Letters
3. of Credit issued in foreign currency are stated in the Balance
{ Sheet at the closing exchange rates published by FEDAI.
2.4 Credit exposure of the un-hedged foreign currency
exposure, if any, of the constituents shall attract provisioning
3.1 .
and capital requirements as per RBI guidelines.
. (\) 3. Investments:
. () As per Reserve Bank of India guidelines, the investments are
. (\) classified and valued as under:
3.1 Investments are classified in the following categories:
a. Held to Maturity (HTM)
b. Available for sale (AFS)
c. Held for trading (HFT)
65
Annual Report 2016-17
3.2 3.2 All the securities are further classified in the following six
baskets:
.
a. Government Securities
. b. Other approved Securities
c. Shares
.
d. Debentures and Bonds
. \ e. Subsidiaries and Joint Ventures
f. Others (Commercial Papers, Mutual Fund Units etc.)
.
3.3 Bank decides the category of each investment at the time of
\. (] , \ ) acquisition and classifies the same accordingly. Shifting of
securities from one category to another, other than shifting /
3.3 transfer from HFT to AFS category, is done once in a year with
. the approval of Board of Directors, at the least of acquisition
(\) () cost / book value / market value on the date of shifting. The
, depreciation, if any, on such shifting is provided for and the book
] / / ] . value of the security is adjusted accordingly. The transfer of
, , ] securities from one category to another is made as per permission
] ] . { from or guidelines of RBI. Transfer / shifting of investments
from HFT to AFS category will be executed under exceptional
circumstances, like not being able to sell the securities within
] . ] ] 90 days due to tight liquidity conditions, or extreme volatility, or
90 \ - market becoming unidirectional.
\[ ] ] /
(\) () 3.4 REPO / Reverse REPO
] . The Bank has adopted the Uniform Accounting Procedure
prescribed by the RBI for accounting of market Repo and
3.4 / Reverse Repo transactions. Repo and Reverse Repo
{ transactions are treated as Collateralized Borrowing / Lending
. Operations with an agreement to repurchase on the agreed
terms. Securities sold under Repo are continued to be shown
/ under investment and Securities purchased under Reverse
\ . \ Repo are not included in investment. Outstanding Repo / Term
] Repo is disclosed as borrowing and outstanding Reverse Repo
. / is disclosed as lending. Costs and revenues are accounted for
as interest expenditure / income, as the case may be.
. ] ] /
3.5 Valuation of investments:
.
a. Held to Maturity:
3.5
(i) Securities under the category Held to Maturity are valued at
. average cost. Wherever the cost of security is higher than the
i) ` ' . face value, the premium is amortized over the remaining period
of maturity on straight line basis. In case of investments, where
]
the cost price is less than the face value, the difference is
ignored.
] . ]
]. (ii) In case of investments in subsidiaries and joint ventures
permanent diminution in value is recognized and provided for;
ii) investment in RRB is valued at carrying cost.
.
(iii) On sale of investments in this category (a) the net profit is initially
.
taken to profit and loss account and thereafter such profit net of
iii) () applicable taxes and proportionate transfer to statutory reserve
is appropriated to the Capital Reserve account; and (b) the net
`] ' () loss is charged to the Profit & Loss Account.
. b. Available for Sale:
. The individual securities under this category are marked
to market on a quarterly basis. Central / State Government
] securities are valued at market rates declared by FIMMDA. Other
. / ] approved securities, debentures and bonds are valued as per
] . , the yield curve, average credit spread rating and methodology
, ^ suggested by FIMMDA. Quoted shares are valued at market
. ] rates. Unquoted shares are valued at book value ascertained
. from the latest available Balance Sheet i.e. Balance Sheet of
immediate preceding year and in case the latest Balance Sheet
.1/- / is not available, the same is valued at Re.1/- per company /
. scrip.
66
Jeeef<e&ke efjHees& 2016-17
] , ] ] Investments in discounted instruments, viz. Treasury Bills,
, ] . \ Certificate of Deposits, Commercial Papers, Zero Coupon
] Bonds are valued at carrying cost. Mutual Fund Instruments
. are valued at market rate or repurchase price or net
() \ asset value in that order depending on their availability.
] () / () Investments in Security Receipts (SRs) / Pass Through
Certificates (PTCs) issued by Asset Reconstruction
( (-)
Companies(ARCs) in respect of financial assets sold to
) .
ARCs are carried at lower of redemption value and net book
" " - value (i.e. book value less provision held) of the financial
assets.
(i) . Based on the above valuation under each of six-sub
classifications under `Available for Sale:
(ii) -
( ) (i) If it results in appreciation, the same is ignored.
] . (ii) If it results in net depreciation, the same is charged
to Profit & Loss account and credited to Provision for
] ()
Depreciation on Investments (AFS) in the liability side.
, , ]
4 Provided that, depreciation, if any, on equity shares
allotted consequent to implementation of Strategic
].
Debt Restructuring (SDR) shall be provided for over a
(iii) { maximum of 4 calendar quarters on straight line basis
] () from the date of conversion of debt into equity.
. (iii) The book value of securities is not changed in respect
of marked to market (MTM) except as required by the
(iv) -
RBI guidelines.
.
(iv) Profit or Loss on sale of investment in this category is
. accounted for in the Profit and loss account.
i. c. Held for Trading:
] ] . ]/
(i) The individual securities under this category are held
]
at original cost and are marked to market every month.
() ] . Central / State Government securities are valued at market
\ , rates declared by FIMMDA. Other approved securities,
^ debentures and bonds are valued as per the yield curve,
. ] . average credit spread rating and methodology suggested
by FIMMDA. Quoted Shares are valued at market rates.
ii. ] , ]
] , ] (ii) Investments in discounted instruments, viz. Treasury
Bills, Certificate of Deposits, Commercial Papers, Zero
. \
Coupon Bonds are valued at carrying cost. Mutual Fund
] Instruments are valued at market rate or repurchase
. / \ price or net asset value in that order depending on their
] availability. Investments in SRs /PTCs issued by ARCs in
( respect of financial assets sold to ARCs are carried at lower
(-) ) . of redemption value and net book value (i.e. book value less
provision held), of the financial assets.
iii. , , -
(iii) Net basket-wise depreciation if any, is charged to Profit &
( )
Loss Account and credited to Provision on Depreciation on
] . Investment (HFT) under liability. Net appreciation, if any is
. { ignored. The book value of the securities is not changed
. after revaluation except as required by the RBI guidelines.
67
Annual Report 2016-17
(i) Valuation:
i)
(a) Hedging Swaps: Interest Rate Swaps for hedging assets and
) ] ] ] ] liabilities are not marked to market.
.
(b) Trading Swaps: Interest Rate Swaps for trading purpose are
) ] ] marked to market.
. (ii) Accounting of income on derivative deals:
ii) (a) Hedging Swaps: Income is accounted for on realization
basis. Expenditure, if any, is accounted for on accrual basis, if
) ] . ascertainable.
] \ \ . (b) Trading Swaps: Income or expenditure is accounted for on
) \ realization basis on settlement date.
. (iii) Accounting of gain or loss on termination of swaps:
(iii) (a) Hedging Swaps: Any gain or loss on the terminated swap is
recognized over the shorter of (a) the remaining contractual life
) ] () of the swap or (b) the remaining life of the asset / liability.
\ () / , ] (b) Trading Swaps: Any gain or loss on terminated swap is
, . recognized as income or expenditure in the year of termination.
) 4. Advances:
\ . 4.1 Advances shown are net of write offs, provisions made for non-
performing assets, claims settled with the credit guarantee
4.
institutions, provision for diminution in fair value for restructured
4.1 , ] , advances and bills rediscounted.
, ] 4.2 Classification of advances and provisions thereon are made
\ . in accordance with the prudential norms prescribed by and
guidelines of RBI from time to time.
4.2 { -
. 4.3 Provision for performing assets, other than provision on standard
restructured advances, is shown under the head Other liabilities
4.3 ] and provisions.
" " I 4.4 In respect of Rescheduled/ Restructured accounts, provision
4.4 / \ , \ for diminution in fair value of restructured advances is made on
present value basis as per RBI guidelines.
{
. 4.5 In respect of advances under SDR, provision is made in
accordance with RBI guidelines, within a maximum period of four
4.5 \ quarters.
{ . 4.6 In case of financial assets sold to Asset Reconstruction Company
4.6 ()/ () \ (ARC)/ Securitization Company (SC), if the sale is at a price
() higher than the NBV, the surplus is retained and utilised to meet
the shortfall/loss on account of sale of other financial assets to
] /
SC/ARC. If the sale is at a price below the net book value (NBV),
/ ] (i.e. outstanding less provision held) the shortfall is to be debited
. () ( to the Profit and Loss account. However if surplus is available,
) , ] . such shortfall will be absorbed in the surplus. Any shortfall arising
due to sale of NPA will be amortised over a period of two years if
]. not absorbed in the surplus.
] ]. Excess provision arising out of sale of NPAs are reversed only
] when the cash received (by way of initial consideration only/
or redemption of SRS/PTC) is higher than the net book value
] ] ( / /
(NBV) of the asset. Reversal of excess provision will be limited to
) () the extent to which cash received exceeds the NBV of the asset.
5. Fixed Assets and Depreciation:
].
5.1 Premises and Other Fixed Assets are accounted for at cost
5. except for certain premises, which were revalued and stated at
5.1 revalued amount.
. 5.2 Depreciation on fixed assets (other than those referred in para
5.2 , ] \\ 5.3 and 5.4 below) is provided for on the diminishing balance
method at the rates specified below, except in case of revalued
] ] , assets, in respect of which higher depreciation is provided on the
(\ \ 5.3 5.4 basis of estimated useful life of these revalued assets.
) , \
.
68
Jeeef<e&ke efjHees& 2016-17
.. (%) Rate of
S.N. Category of Asset Depreciation
1 5.00 (%)
2 18.10 1 Building & Premises 5.00
3 13.91 2 General items including Safe 18.10
3 Electrical Equipments 13.91
4 13.91
4 Office Machinery 13.91
5 25.89 5 Motor Vehicles 25.89
6 ] 13.91 6 Safe Deposit Vault 13.91
7 20.00 7 Bicycle 20.00
5.3 On computers, depreciation is provided at the rate of 33.33% on
5.3 () 33.33%
Straight Line Method (SLM) so as to write down the asset value
{ in three years to Rupee One as per RBI guidelines. Computers
1 ]. , include software, ATMs and UPS also.
.
5.4 Depreciation is provided for full year in respect of assets
5.4 . purchased during the year. No depreciation is provided on
\ / . assets sold / discarded during the year.
5.5 5.5 Depreciation relating to revalued amount over and above the
\ ] cost of the revalued assets, is provided on diminishing balance
] 5.2 method over the residual life of the fixed assets as stated in para
] . 5.2 and adjusted against the Revaluation Reserve. Revaluation
Reserve on fully depreciated properties is amortized on the
basis of their residual life as certified by approved valuers.
\ ] .
5.6 Leasehold land cost is amortized over the period of lease on
5.6 () SLM basis.
.
6. Revenue Recognition
6. ]
6.1 All revenues and costs are accounted for on accrual basis except
6.1 , ] the following items, which are accounted for on cash basis:-
\ -
a. Interest on Advances and Investments identified as Non-
. { - ] Performing Assets according to the prudential norms and
guidelines issued by RBI, from time to time.
]
]. b. Income from commission viz., on Guarantees, Letter of Credit,
Government business, Bancassuarance, Mutual Fund business,
. -, , , - , credit & debit cards issued and Locker Rent.
\ , ] .
c. Interest for overdue period on bills purchased and bills
. ] ]. discounted.
d. Insurance claims.
69
Annual Report 2016-17
8. Impairment of Assets:
8. :
Impairment losses, if any, on fixed assets including revalued fixed
] 28 - , assets are recognized in accordance with Accounting Standard
, , 28- Impairment of Assets issued by the ICAI and charged to
. Profit & Loss Account.
70
Jeeef<e&ke efjHees& 2016-17
71
Annual Report 2016-17
2016-17 \ During the financial year 2016-17, the Bank has not shifted securities
. 2016-17 from HFT category to AFS category. Also, during the FY 2016-17, the
Bank has not shifted securities from AFS and HFT categories to HTM
\ \ .
Category.
2016-17 \ { During the FY 2016-17, the Bank has transferred securities from
01.07.2015 /2015-16/97 . HTM category to AFS category amounting to Rs. 3158.65 crores (Rs.
..6/21.04.141/2015-16 .3158.65 1321.20 crores) and charged to Profit & Loss depreciation amounting
(.1321.20 ) . to Rs. Nil due to such transfer taking in terms of RBI guidelines
. RBI/2015-16/97 DBR No BP. BC.6/21.04.141/2015-16 dated 1.7.2015.
72
Jeeef<e&ke efjHees& 2016-17
4, 5, 6 7 . Amounts reported under columns 4, 5, 6 & 7 may not be mutually
exclusive.
.6991.33 (.6025.06 ) .875.61 The total investment of Rs. 6991.33 crores (Rs. 6025.06 crores)
(.1194.93 ) ] .153.76 (.284.63 includes Rajasthan Special Bonds of Rs. 875.61 crores (Rs 1194.93
crores) UP state Power Bonds of Rs. 153.76 crores (Rs 284.63 crores)
) .199.59 (. 199.59 )
Haryana State Special Bonds Rs. 199.59 crores (Rs.199.59 crores)
, .276.58 (. 439.99 ) ] Punjab State Special bonds Rs 276.58 crores (Rs. 439.99 crores)
. \ 8 . The same has been included in Govt. Securities in Schedule 8 to the
Balance Sheet.
2.3.2 ] ( ) 2.3.2 Non performing Non-SLR investments
(Rs. In Crores)
31.03.2017 31.03.2016
Particulars 31.03.2017 31.03.2016
102.31 86.30
Opening balance 102.31 86.30
569.15 16.01 Additions during the year 569.15 16.01
16.01 0.00 Reductions during the year 16.01 0.00
655.45 102.31 Closing balance 655.45 102.31
Total provisions held 187.66 56.12
187.66 56.12
As per RBI letter DBR.BP.No.11657/21.04.132/2015-16 dated
{ 17.03.2016 . .. 17.03.2016, Investment amounting to Rs. 476.80 crores in UDAY
.11657/21.04.132/2015-16 , .476.80 bonds is treated as NPI and provision at 25% amounting to Rs. 119.20
25% crores is made on the same.
, ] . 119.20 . 2.4 The value of the sales and transfer of securities to / from HTM
category during the financial year 2016-17, excluding onetime
2.4 2016 -17 transfer with the approval of the Board, sales to RBI under pre
\ / announced OMO auctions and as permitted by RBI, does not
{ exceed 5 percent of the book value of the investments in HTM
{ \ category at the beginning of the year.
5 \. Profit on sale of investments in HTM category should be first
taken to the Profit & Loss Account, and thereafter be appropriated
\ to the Capital Reserve Account after netting off taxes and
] \ { 07 ], 2014 amount required to be transferred to Statutory Reserves as per
. .....74 / 03.05.33 / 2013- RBI circular RPCD.CO.RRB.BC.No. 74/03.05.33/2013-14 dated
14 ] 7th January 2014.
] ( ) ] As per RBI guidelines, an amount of Rs. 87.25 crores net of taxes
being profit on sale of investment in Held to Maturity category is
] ]. transferred to Capital Reserve. In the previous FY i.e. 2015-16,
{ ` ' amount of Rs. 28.83 crores net of taxes and appropriate transfer
to statutory reserve had been transferred to capital reserve
. 87.25 ]
2.5 The Bank has amortized Rs.62.55 crores during the year (Rs.
. 2015-16 52.46 crores) for securities classified under Held to Maturity
. 28.83 category, and the amount has been charged to Profit & Loss
] . account by reducing the value of respective securities to that
extent.
2.5 ` ' .62.55 2.6 During the current financial year 2016-17, an amount of Rs.
(.52.46 ) 8.12 crores net of taxes has been drawn down from Investment
- . Reserve Account on account of depreciation required to be
2.6 \ 2016-17 .8.12 made for investment held under AFS & HFT categories.
] In the previous FY i.e. 2015-16, amount of Rs. 12.96 crores
net of taxes and appropriate transfer to statutory reserve had
. been drawn down from Investment Reserve on account of
2015-16 , .12.96 depreciation required to be made for investment held under AFS
& HFT categories
] 3. Derivatives:
. 3.1 Forward Rate Agreement / Interest Rate Swap
(Rs. in Crores)
3
Items 31.03.2017 31.03.2016
3.1 / ] (. ) i) The notional principal of swap
100.00 425.00
agreements
31.03.2017 31.03.2016
ii) Losses which would be incurred
i) 100.00 425.00 if counterparties failed to fulfill their Nil Nil
ii) obligations under the agreements
iii) Collateral required by the Bank upon
Nil Nil
entering into swaps
iii) iv) Concentration of credit risk arising
Nil Nil
iv) ] from the swaps
v) \ (+) /(-) (-) 0.46 (-)0.84 v) The fair value of the swap book (+)
(-) 0.46 (-) 0.84
To receive / (-) To pay
73
Annual Report 2016-17
/ . The Bank has policy guidelines in place for IRS/ FRAs. The approved
/ .2000 . 31 \ 2017 ceiling for IRS / FRAs in terms of notional principal is Rs 2000 crores.
4 (\) , ] As on 31st March 2017, the Bank had 4 outstanding swaps for
notional principal of Rs 100 crores which were for trading purpose.
.100 ] . -
MTM valuation for outstanding trading swaps is Rs. (-) 0.46 crores.
] \ () . (-) 0.46 .
3.2 Exchange Traded Interest Rate
3.2 ]
(Rs. in Crores)
(. )
S.N. Particulars 2016-17 2015-16
. 2016-17 2015-16 Notional principal amount of
. exchange traded interest rate
1 derivatives undertaken during
1 (-) 587.57 the year (instrument-wise)
a) Interest Rate Future 587.57 Nil
\] - ]
Notional principal amount of
exchange traded interest rate
) ] 2 Nil Nil
derivatives outstanding as on
31st March (instrument-wise)
2 31 \ (-)
\] - ] Notional principal amount of
exchange traded interest rate
3 derivatives outstanding and not Nil Nil
"highly effective" (instrument-
3 '\\ ' (- wise)
) \] - ] Mark-to-market value of
exchange traded interest rate
4 derivatives outstanding and not Nil Nil
4 '\\ ' ( "highly effective" (instrument-
) \] ] wise)
-- 3.3 Disclosures on risk exposure in derivatives
3.3 ] 3.3.1 Qualitative Disclosure
3.3.1 (i) Derivative policy is approved by the Board, which includes
measurement of credit & market risk.
i) , ] ] ]
(ii) Policy for hedging and processes for monitoring the same
] .
are in place.
ii) (]) . (iii) The hedged transactions are undertaken for Balance Sheet
iii) (]) . ] management. Proper system for reporting and monitoring of
\ . risks is in place.
(iv) Risk Management of derivative operations is headed by a
iv) \ ] \\
Top Management Executive who reports to Head Office.
, ] . The swaps are tracked on regular basis.
] .
(v) Accounting Policy for recording hedge and non-hedge
v) - \ 17 \ 3.5 () (ii) transactions is in place, which includes recognition of
, - income, expenditure, valuation of outstanding contracts and
\ , ] , credit risk mitigation as given in para 3.5 (f)(ii) of Schedule
] . 17, viz., Significant Accounting Policies.
vi) { \ (vi) The Bank has made requisite provision on credit exposure
of derivative contracts computed as per current exposure
. method & as per RBI guidelines.
3.3.2 Quantitative Disclosures
3.3.2
(Rs. in Crores)
(. )
Currency Interest rate
.. ] Derivatives derivatives
S. N. Particulars
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
(i) ( ) (i) Derivatives (Notional Principal
12997.65 14089.80 100.00 425.00 12997.65 14089.80 100.00 425.00
amount)
) (]) 7065.81 2695.06 0.00 0.00 (a) For hedging 7065.81 2695.06 0.00 0.00
) () 5931.84 11394.74 100.00 425.00 (b) For Trading 5931.84 11394.74 100.00 425.00
(ii) ] \ (1) (ii) Marked to Market Position [1]
) (+) 175.81 40.00 0.00 0.00 (a) Asset (+) 175.81 40.00 0.00 0.00
) (-) - 0.00 (-) 0.46 (-)0.84 (b) Liability (-) - 0.00 (-) 0.46 (-)0.84
74
Jeeef<e&ke efjHees& 2016-17
(iii) (2) 435.76 321.80 0.75 4.50 (iii) Credit Exposure [2] 435.76 321.80 0.75 4.50
(iv) ] (iv) Likely impact of one per-
(100* 01) centage change in interest
rate (100*PV01)
) ] 0.37 0.02 0.00 0.00
(a) On hedging derivatives 0.37 0.02 0.00 0.00
) 1.08 0.07 0.02 9.37
(b) On trading derivatives 1.08 0.07 0.02 9.37
(v) 100* 01
(v) Maximum and Minimum of
100*PV01 observed during
the year
1) (]) : Max : 3.37 Max : 4.32 Max :NA Max :NA
:. (a) On hedging
: 3.37 : 4.32 Min : 0.02 Min : 0.02 Min : NA Min : NA
: 0.02 : 0.02 : . Max : 1.98 Max : 13.78 Max : 0.11 Max : 9.37
(b) On trading
Min : 0.05 Min : 0.07 Min : 0.02 Min : 1.77
2) ()
: 1.98 : 13.78 0.11 : 9.37 3.4 Standard provision on derivative exposure*:
: 0.05 : 0.07 : 0.02 : 1.77
(Rs. in Crores)
3.4
*
31.03.2017
(. ) Provision as
S. applicable
Particulars Credit
N. to
. 31.03.2017 Exposure
standard
advances
1 Interest rate derivative 0.75 0.003
1 ] 0.75 0.003 2 Foreign exchange derivative 477.11 1.91
3 Gold contract Nil Nil
2 477.11 1.91
4 Credit default swaps Nil Nil
3
Total 477.86 1.913
4 \
* Credit Exposure calculated as per RWA guidelines of Basel III.
477.86 1.913
* III ] () 3.5 Credit Default Swaps (CDS):
The Bank has no credit default swaps during the year 2016-17 or as
on March 31, 2017 is Nil.
3.5 \ ()
4. Asset Quality
2016-17 \ () 4.1 Non-Performing Assets
31 \, 2017 . (Rs. in Crores)
4 Particulars 31.03.2017 31.03.2016
4.1 ] (i) Net NPAs to Net Advances (%) 11.76 6.35
(ii) Movement of NPAs (Gross)
(. )
(a)Opening balance 10385.85 6402.06
31.03.2017 31.03.2016 (b)Additions during the year 9119.05 5723.85
(c) Reductions during the year 2316.19 1740.06
(i) ] (%) 11.76 6.35
(d) Closing balance 17188.71 10385.85
(ii) ] ()
(iii) Movement of Net NPAs
() 10385.85 6402.06 (a) Opening balance 6832.03 4126.57
() 9119.05 5723.85 Add: ECGC/DICGC Settled
87.30 49.22
() 2316.19 1740.06 amount
() 17188.71 10385.85 Gross Opening Balance 6919.33 4175.79
75
Annual Report 2016-17
76
Jeeef<e&ke efjHees& 2016-17
31.3.2017 31.3.2016 31.3.2017 31.3.2016 31.3.2017 31.3.2016 31.3.2017 31.3.2016 31.3.2017 31.3.2016 31.3.2017 31.3.2016
] Book Value of
Investment in *127.71 40.90 - - 127.71 40.90
*127.71 40.90 - - 127.71 40.90 Security Receipts
*Note: Bank has applied with fund transferred to ARC for subscription
* 2016- 17 .127.71 of Security Receipts (SRs) amounting to Rs. 127.71 crores during FY
() 2016-17. Allotment of SR in DEMAT form by ARC is in process.
. . The details of the book value of investments outstanding at the end of
the year in security receipts are as under:
(. ) (Rs. in Crores)
31.03.2017 31.03.2016 As on As on
Particulars
31.3.2017 31.3.2016
i) \ ] 102.28 106.34
i) Backed by NPAs sold by Bank as underlying 102.28 106.34
ii) / / ii) Backed by NPAs sold by other Banks /financial institu-
0.00 0.00 0.00 0.00
\ ] tions / non- banking financial companies as underlying
102.28 106.34 Total 102.28 106.34
5
5 8 SRs issued
SRs issued
] ] SRs issued more than 5
more than
8 Particulars within past years ago but
8 years
] 5 years within past 8
ago
years
i) \ 99.53 0.00 2.75 i) Book Value of SRs Backed by NPAs sold 99.53 0.00 2.75
by the bank as underlying
Provision held against (i) 0.96 0.00 2.75
i) 0.96 0.00 2.75
ii) Book Value of SRs Backed by NPAs sold 0.00 0.00 0.00
ii) / 0.00 0.00 0.00 by other banks / financial institutions /
/ non-banking financial companies as un-
\ derlying
Provision held against (ii) 0.00 0.00 0.00
(ii) 0.00 0.00 0.00 TOTAL i) + ii) 99.53 0.00 2.75
i) + ii) 99.53 0.00 2.75 As per RBI circular DBR No. BP.BC.102/21.04.048/2015-16 dated
13.06.2016, Nil provisions was made during the year to meet the
{ 13.06.2016 ... . shortfall in sale of NPAs to Securitization Company/ Reconstruction
102/21.04.048/2015-16 , Company and unamortized provision was debited to other reserves at
/ the end of the year.
. 4.5 Details of non- performing financial assets purchased from
other Banks
4.5 ] (Rs. in Crores)
( ) Particulars
31.03.2017 31.03.2016
31.03.2017 31.03.2016 1 (a) No. of accounts purchased during the year Nil Nil
1. () (b) Aggregate outstanding 0.00 0.00
() 0.00 0.00 2 (a) Of these, no of accounts restructured during the year Nil Nil
2. () \ (b) Aggregate outstanding 0.00 0.00
() 0.00 0.00
77
Annual Report 2016-17
( )
(Rs. In Crores)
.. . / S. No. /
Particulars
1 ] * N. Amount
No of SPVs sponsored by the bank for securitiza-
2 ] 1
tion transactions*
Total amount of securitized assets as per books of
2
3 the SPVs sponsored by the bank
3
Total amount of exposures retained by the bank to
comply with MRR as on the date of balance sheet
))
a) Off-balance sheet exposures
First loss
Others
b) On-balance sheet exposures
) First loss
Others
Amount of exposures to securitization transactions
4
other than MRR
4 a) Off-balance sheet exposures
i) Exposure to own securitizations
)
First loss Nil
i) Loss
ii) Exposure to third party securitizations
First loss
ii)
Others
b) On-balance sheet exposures
) i) Exposure to own securitizations
i) First loss
Others
ii) Exposure to third party securitizations
ii) First loss
Others
*Only the SPVs relating to outstanding securitization transactions may
* ]. be reported here
4.8 Particulars of Accounts Restructured
4.8 \
4.9 Sustainable structuring of stressed assets (S4A), as on
4.9 31.03.2017 ( 4 ) \ 31.03.2017
( ) (Rs in Crores)
No of Ag- Amount outstanding
] accounts gregate
Asset Classification where S4A amount Provision held
(4) In Part A In Part B
has been out-
applied standing
1 30.96 30.96 0.12 Standard 1 30.96 30.96 Nil 0.12
2 118.81 104.21 14.60 32.77 NPA 2 118.81 104.21 14.60 32.77
78
31.03.2017 \ Disclosure of Restructured Accounts as on 31.03.2017
- NAME OF THE BANK Bank of Maharashtra (. ) (Rs. in Crore)
.. \ Type of Restructuring Under CDR Mechanism \ Under SME Debt Restructuring Mechanism Others Total
Sr No
Asset Classification Sub- Loss Total Sub- Loss Total Sub- Loss Total Sub- Loss Total
Stand-ard Stand-ard Doubt-ful Stand-ard Stand-ard Doubt-ful Stand-ard Stand-ard Doubt-ful Stand-ard Stand-ard Doubt-ful
Details
1 1 2016 \ ( )* Re- No. of 19 7 8 0 34 281 148 140 3 572 26535 4330 3088 213 34166 26835 4485 3236 216 34772
structured Accounts as on April 1 , 2016 (opening figures)* borrowers
Amount 1709.51 504.45 982.02 0.00 3195.97 334.40 172.18 71.99 0.10 578.67 2351.57 198.72 462.71 1.17 3014.18 4395.48 875.34 1516.72 1.26 6788.81
Jeeef<e&ke efjHees& 2016-17
outstanding
Provision 55.38 19.31 13.45 0.00 88.14 4.72 1.69 0.69 0.00 7.11 39.27 4.14 1.62 0.00 45.04 99.38 25.14 15.77 0.00 140.29
thereon
2 \ Fresh restructuring during the year No. of 0 0 0 0 0 1 1 0 2 4 8 2441 681 58 3188 9 2442 681 60 3192
borrowers
Amount 0.00 0.00 0.00 0.00 0.00 5.84 2.17 0.00 0.43 8.44 307.07 38.96 57.36 0.04 403.44 312.91 41.13 57.36 0.47 411.88
outstanding
Provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 1.81 2.51 0.00 4.35 0.03 1.81 2.51 0.00 4.35
thereon
3 \ No. of 0 0 0 0 0 2 -1 -1 0 0 1 -1 0 0 0 3 -2 -1 0 0
Upgradations to restructured standard category during the FY borrowers
Amount 0.00 0.00 0.00 0.00 0.00 2.98 -1.09 -1.89 0.00 0.00 6.11 -6.11 0.00 0.00 0.00 9.10 -7.21 -1.89 0.00 0.00
outstanding
Provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 -0.09 0.00 0.00 0.00 0.09 -0.09 0.00 0.00 0.00
thereon
4 \ ] \\ ] / No. of -4 -4 -101 -101 -12 -12 -117 -117
] borrowers
\ ] Restructured
standard advances which cease to attract higher provisioning Amount -280.15 -280.15 -59.99 -59.99 -249.00 -249.00 -589.15 -589.15
79
and /or additional risk weight at the end of the FY and outstanding
hence need not be shown as restructured standard advances Provision -5.47 -5.47 -0.50 -0.50 -2.49 -2.49 -8.46 -8.46
at the beginning of the next FY thereon
5 \ No. of -12 -2 14 0 0 -21 -16 34 3 0 -8 -9 16 1 0 -41 -27 64 4 0
Downgradations of restructured accounts during the FY borrowers
Amount -1187.19 -211.98 1399.17 0.00 0.00 -126.50 -15.20 131.70 10.00 0.00 -146.10 -77.63 178.86 44.87 0.00 -1459.79 -304.80 1709.72 54.87 0.00
outstanding
Provision -32.56 -8.83 41.39 0.00 0.00 -2.17 1.24 0.93 0.00 0.00 -1.84 0.04 1.79 0.00 0.00 -36.57 -7.54 44.12 0.00 0.00
thereon
6 \ No. of 0 -2 -4 0 -6 -7 -59 -32 0 -98 -8 -2 -4 0 -14 -15 -63 -40 0 -118
Write-offs of restructured accounts during the FY borrowers
Amount 0.00 -133.83 -338.66 0.00 -472.49 -30.73 -15.36 -12.02 0.00 -58.11 -183.37 -6.74 -52.48 0.00 -242.59 -214.10 -155.94 -403.15 0.00 -773.19
outstanding
7 31 \ 2017 \ ( )* Restructured No. of 3 4 18 0 25 155 77 141 8 381 26516 6770 3781 272 37339 26674 6851 3940 280 37745
Accounts as on 31st March 2017 (closing figures*) borrowers
Amount 206.77 188.07 2080.56 0.00 2475.40 113.64 184.42 177.52 10.52 486.10 2074.69 185.65 1456.19 43.53 3760.07 2395.10 558.15 3714.27 54.05 6721.57
outstanding
Provision 16.35 7.09 40.74 0.00 64.19 2.51 2.35 1.59 0.00 6.44 25.00 4.94 5.96 0.00 35.90 43.86 14.38 48.29 0.00 106.53
thereon
* \ , ] \\ ] ( ) ] . *Excluding the figures of Standard Restructured Advances which do not attract higher provisioning or risk weight (if applicable).
Reconciliation of Differences
Reason for Differences No. of 0 1 0 0 1 0 4 0 0 4 0 11 0 0 11.00 0 16 0 0 16
\ ] \\ borrowers
\
Downgradation restructured standard assets not Amount 0.00 15.66 0.00 0.00 15.66 0.00 44.33 0.00 0.00 44.33 0.00 42.41 819.97 0.00 862.37 0.00 102.39 819.97 0.00 922.36
attracting higher provision & Upgradation to restructured outstanding
standard assets not attracting provisiion Provision 0.00 0.00 0.00 0.00 0.00 0.00 0.27 0.00 0.00 0.27 0.00 0.00 0.00 0.00 0.00 0.00 0.27 0.00 0.00 0.27
thereon
\ : / / . Variation in restructured amount is mainly on account of additional / fresh disbursement / repayments.
Annual Report 2016-17
(Rs in Crores)
(. )
] ] ]
Amount Outstanding as on the
reporting date
Amount outstanding as on reporting date
Amount outstanding as on reporting
No of accounts with respect to accounts where conversion
date with respect to accounts where
where SDR has of debt to equity is pending
conversion of debt to equity has
been invoked taken place
$
$ $
Classified as
** Classified as
Classified as Classified as
Standard Classified as NPA** Standard Classified as
NPA Standard
NPA
20 802.83 2337.53 Nil 19.06 802.83 113.13
80
Jeeef<e&ke efjHees& 2016-17
4.12 ] (]
4.12 Change in ownership outside SDR Scheme (accounts which are currently under stand still period)
( )
(Rs in Crores)
]
Amount outstanding as on ] , , ] ]
the reporting date / ]
/
No of accounts
where banks Amount outstanding as on Amount outstanding as on Amount outstanding as on report-
have decided to reporting date with respect reporting date with respect ing date with respect to accounts
effect change in to accounts where conver- to accounts where conver- where change in ownership is
ownership sion of debt to equity / in- sion of debt to equity / in- envisaged by issuance of fresh
vocation of pledge of equity vocation of pledge of equity shares or sale of promoters
shares is pending shares has taken place equity
Classified as Classified as Classified as Classified as
Standard NPA Standard NPA Standard NPA Standard NPA
1 89.25 Nil 89.25 Nil Nil Nil 89.25 Nil
81
Annual Report 2016-17
.21.06 (.21.06 ) , ] The Bank is holding a general provision of Rs. 21.06 crores
{ ] () (Rs. 21.06 crores) which has been reckoned while computing the
provision coverage ratio (PCR) as per RBI permission.
] .
5. Business Ratios
5.
S
Particulars 31.03.2017 31.03.2016
31.03.2017 31.03.2016 N
i Interest Income as a percentage to Working Funds. 7.55% 8.71%
1. ] 7.55% 8.71%
iiNon-Interest Income as a percentage to Working Funds. 0.94% 0.68%
2. ] 0.94% 0.68% iiiOperating Profit as a percentage to Working Funds. 1.14% 1.56%
3. \ 1.14% 1.56% iv Return on Assets (0.86) 0.07
4. (0.86) 0.07 v
Business (Deposits + Advances) per employee (Rs. in
18.40 18.02
5. \ (] + ) ( ) 18.40 18.02 Crores)
vi Profit per Employee (Rs. in Lakh) (10.58) 0.73
6. \ ( ) (10.58) 0.73
6.
Asset Liability Management:
Maturity pattern of certain items of Assets and Liabilities ( )
(Rs. in Crores
1 2 7 8 14 15 30 31 2 3 6 1 3 5
Particulars 1 day 2 to 7 days 15 to 30 2 3
Total
8 to 14 days 31 days to Over 6 1 3 5
Over 5
days 2months 2 months Over 3 Over 6 Over 1 year years
and up to 3 months up months up up to 3 Over 3
months to 6 months to 1 year years years up to
5 years
]
Deposits 882.67 1671.31 1722.08 2763.73 3299.29 4927.23 8792.55 29282.52 80303.97 1138.18 4269.30 139052.83
Advances 880.29 1363.19 3643.63 3894.87 2486.82 2139.81 10600.07 7653.98 37396.04 14188.24 17289.84 101536.78
Investments 11.00 149.46 0.00 355.58 418.57 226.61 1596.71 1398.91 6202.24 4083.85 24398.65 38841.58
Borrowings 40.65 0.00 0.00 1500.00 0.00 22.00 70.00 324.29 1270.78 1013.88 3996.68 8238.28
Foreign Currency
Assets 636.97 3355.57 33.97 917.52 624.48 1140.35 889.51 661.48 0.00 0.00 0.00 8259.85
Foreign Currency
Liabilities 123.65 4170.62 40.28 2151.62 497.01 673.72 748.85 715.60 211.76 143.86 0.00 9476.97
82
Jeeef<e&ke efjHees& 2016-17
6.1 ]
Liquidity Coverage Ratio:
:
Quantitative Disclosure: ( )
(Rs in Crores)
2016-17 2015-16
() () () ()
Total Un-weighted Total Weighted Total Un-weighted Total Weighted
Value (average) Value (average) Value (average) Value (average)
\\
High Quality Liquid Assets (HQLAs)
1
\\
Total High Quality liquid Assets 18596.48 14278.33
Cash outflows
2
]
]
Retail deposits and deposits from small
business customers, of which:
107266.86 9067.68 96930.79 8243.66
(i)
] Stable deposits 33180.06 1659.00 28988.47 1449.43
(ii)
] Less stable deposits 74086.80 7408.68 67942.33 6794.23
3
, ]
Unsecure wholesale funding, of which: 21877.24 13388.50 23020.52 11667.56
(i)
\ ] ( )
Operational deposits (all counterparties) 167.41 41.85 1413.08 353.27
(ii)
\ ] ( )
Non-operational deposits ( all counterparties) 21709.83 13346.64 21607.44 11314.29
(iii)
Unsecured debt 0.00 0.00 0.00 0.00
4
Secured wholesale funding 236.85 0.00 236.85 0.00
5
, ]
Additional requirements, of which: 16944.35 2014.84 16610.11 1933.91
(i)
Outflows related to derivatives exposure and
other collateral requirements 0.00 0.00 0.00 0.00
(ii)
Outflows related to loss of funding on debt
products 0.00 0.00 0.00 0.00
(iii)
Credit and liquidity products 16944.35 2014.84 16610.11 1933.91
6
Other contractual funding obligations 150.35 150.35 197.58 197.58
7
Other contingent funding obligtations 14634.09 476.07 13992.74 662.14
8
Total cash outflows 25097.44 22704.85
83
Annual Report 2016-17
Cash inflows
9
(. )
Secured lending (e.g. reverse repos) 2950.65 0.00 439.99 0.00
10
Inflows from fully performing exposures 9473.86 8863.02 4133.04 3309.18
11
Other cash inflows 523.36 367.21 896.91 510.42
12
TOTAL CASH INFLOWS 12947.87 9230.23 5469.94 3819.60
] ]
Total Adjusted Total Adjusted
Value Value
13
\\ TOTAL
HQLA 18596.48 14278.33
14
TOTAL NET CASH OUTFLOWS 15867.21 18885.25
15
] (%)
Liquidity coverage ratio (%) 117.20% 75.61%
Qualitative
] () The Liquidity Coverage Ratio (LCR) aims to ensure that a bank has an
\\ (\) , ] adequate stock of unencumbered High-Quality Liquid Assets (HQLA)
that can be converted into cash easily and immediately to meet its
30 liquidity needs for a 30 calendar day liquidity stress scenario.
] . The LCR is calculated by dividing the amount of High Quality Liquid
unencumbered Assets (HQLA) by the estimated net outflows over a
30 stressed 30 calendar day period. The net cash outflows are calculated
\\ (\) by applying RBI prescribed outflow factors to the various categories
] . of liabilities (deposits, unsecured and secured wholesale borrowings),
(], ) 30 as well as to undrawn commitments and derivative-related exposures,
netted by inflows from assets maturing within 30 days.
]
{ Average LCR for the year ended 31st March 2017 is 117.20%, above
] . RBI prescribed minimum requirement of 70%.
84
Jeeef<e&ke efjHees& 2016-17
7.2 7.2 Concentration of Advances
(Rs. in Crores)
(. )
Particulars 31.03.2017 31.03.2016
31.03.2017 31.03.2016 Total Advances of Twenty largest
14524.85 15530.01
borrowers
14524.85 15530.01
Percentage of Advances of
Twenty largest borrowers to Total 14.31% 13.96%
14.31% 13.96%
Advances of the Bank
4 ] 3566.33 2145.08
7.5 Movement of Gross NPAs
7.5 ]
(Rs. in Crores)
(. )
Particulars 2016-17 2015-16
2016-17 2015-16 Gross NPAs as on 1st April (Opening
10385.85 6402.06
Balance)
1 ] ( ) 10385.85 6402.06
Additions (Fresh NPA) during the year 9119.05 5723.85
( ] ) 9119.05 5723.85 Sub-total (A) 19504.90 12125.91
] () 19504.90 12125.91 Less:
: (i) Up gradations 149.36 191.29
(i) 149.36 191.29 (ii) Recoveries (excluding recoveries
809.72 645.45
made from upgraded accounts)
(ii) ( ) 809.72 645.45
(iii) Technical / Prudential write-off 1119.04 820.23
(iii) / 1119.04 820.23 (iv) Write-offs other than those under
238.07 83.09
(iv) (iii) (iii) above
238.07 83.09
Sub-Total (B) 2316.19 1740.06
] () 2316.19 1740.06 Gross NPAs as on 31st March (Clos-
17188.71 10385.85
ing Balance) (A-B)
31 \ ( ) ]
17188.71 10385.85 7.6 Movement of Technical / Prudential Write off
(-)
(Rs. in Crores)
7.6 / \
(. ) Particulars 2016-17 2015-16
Opening balance of Technical /
2016-17 2015-16 Prudential written-off accounts 2007.56 1281.77
as at 1st April
1 / Add: Technical / Prudential write
2007.56 1281.77
offs during the year + variation
] : / (Rs. 0.18 crores for Current Year 1136.25 821.10
+ ( .0.86 1136.25 821.10 and Rs.0.86 crores for Previous
Year)
\ .0.18 )
Sub-Total (A) 3143.81 2102.87
] () 3143.81 2102.87 Less: Recoveries made from
: / previous technical / prudential
75.12 95.31 75.12 95.31
() written-off accounts during the
year (B)
31 \ (-) 3068.69 2007.56
Closing balance as at 31st
3068.69 2007.56
March (A-B)
85
Annual Report 2016-17
7.7 Sector-Wise Advances:
(. )
(Rs. in Crores)
2016-17 2015-16
S. N. Sector
] ]
Outstanding Gross ] Outstanding Gross
Total NPAs (%) Total NPAs ]
Advances Percentage of Advances
Gross NPAs to (%)
Total Advances Percentage of
in that sector Gross NPAs to
(%) Total Advances
in that sector
(%)
A Priority Sector
1
15290.78 1728 11.30 14851.67 1205.86 8.12
Agriculture and allied activities
2
5965.21 1927.19 32.31 6807.98 1533.55 22.53
Advances to industries sector eligible as priority sector lending
3 Services 9180.9 1595.55 17.38 9262.61 1336.62 14.43
4 Personal loans 7005.01 364.61 5.20 7478.93 244.99 3.28
B Non-Priority Sector
86
Jeeef<e&ke efjHees& 2016-17
8. 8. Exposures:
8.1 Exposure to Real Estate Sector
8.1 ( ) (Rs. in Crores)
(. )
SN Category 31.03.2017 31.03.2016
31.03.2017 31.03.2016 a) Direct exposure 20414.56 18522.62
. i Residential Mortgages 14370.45 11460.65
20414.56 18522.62 Out of which Loans up to Rs. 25lakh 6982.71 7008.77
Lending fully secured by mortgage
i) -] .25.00 14370.45 11460.65 on residential property that is or will
] 6982.71 7008.77 be occupied by the borrower or that
is rented; (Individual housing loans
eligible for inclusion in priority sector
. ( ] advances may be shown separately)
]) ii Commercial Real Estate
ii) ] Lending secured by mortgages on 6044.11 7061.97
commercial real estates (office
] 6044.11 7061.97 buildings, retail space, multi-purpose
( , , ] ] commercial premises, multi-family
residential buildings, multi-tenanted
, - ,
commercial premises, industrial or
] , , , warehouse space, hotels, land
, ) acquisition, development and
construction, etc.) Exposure also
. includes non-fund based (NFB) limits.
iii) () iii Investments in Mortgage Backed
- Securities (MBS) and other securitised
exposures
)
a. Residential, Nil Nil
) ] b. Commercial Real Estate. Nil Nil
) Indirect Exposure
1763.32 4663.55 b) Fund based and non-fund based
exposures on National Housing Bank 1763.32 4663.55
(NHB) and Housing Finance Compa-
nies (HFCs).
22177.88 23186.17
Total Exposure to Real Estate Sector 22177.88 23186.17
8.2 Exposure to Capital Market
8.2 ] ] (Rs. in Crores)
(. )
S
Particulars 31.03.2017 31.03.2016
N
31.03.2017 31.03.2016 i Direct investment in equity shares,
convertible bonds, convertible
debentures and units of equity-
i) , , \ , oriented mutual funds the corpus of
83.09 100.52
\ ] which is not exclusively invested in
83.09 100.52 corporate debt
,
ii Advances against shares/bonds/
debentures or other securities or
ii) (/ on clean basis to individuals for
), , \, investment in shares (including Nil Nil
IPOs/ESOPs), convertible bonds,
\ convertible debentures, and units
//\ of equity-oriented mutual funds
] iii Advances for any other purposes
where shares or convertible bonds
iii) ] , ] or convertible debentures or units 0.69 0.67
\ of equity oriented mutual funds are
0.69 0.67 taken as primary security
\
iv Advances for any other purposes to
the extent secured by the collateral
iv) ] , ] security or shares or convertible
\ \ bonds or convertible debentures or
units of equity oriented mutual funds
i.e. where the primary security other
62.70 62.83
62.70 62.83
] / / \/ than shares/convertible bonds/
convertible debentures/units of
equity oriented mutual funds does
. not fully cover the advances
87
Annual Report 2016-17
2 20 - 472.11 91.11 The details of the intra-group exposures of the bank are as under
/ (Rs. In Crores)
3 0.46% 0.08%
-
- S.N. Particulars 2016-17 2015-16
4 Total amount of intra-group
1 472.11 91.11
exposures
Total amount of top-20 intra-
2 472.11 91.11
group exposures
Percentage of intra-group ex-
3 posures to total exposure of the 0.46% 0.08%
bank on borrowers / customers
Details of breach of limits on
4 intra-group exposures and Nil Nil
regulatory action thereon, if any
88
Jeeef<e&ke efjHees& 2016-17
89
Annual Report 2016-17
\\ ] 0.34 0.00 0.14 0.00 Very High Risk 0.34 0.00 0.14 0.00
] 0.02 0.00 0.08 0.00 Off-credit 0.02 0.00 0.08 0.00
3252.49 0.00 2764.49 0.00 Total 3252.49 0.00 2764.49 0.00
]
Since Banks net funded exposure for risk category-wise
31.03.2017 1 ] exposure for each country is less than 1% of banks total assets
. as on 31.03.2017, no provision is required in terms of RBI
8.8 guidelines.
8.8 Provisioning Coverage Ratio:
01 , 2009 . ....
64/21.04.048/2009-10 The bank has computed the provision coverage ratio (PCR) as
] 44.48% . 31.03.2017 required vide circular No.DBOD.No.BP.BC.64/21.04.048/2009-
] . 2010, dated December 1, 2009, which is 44.48%. This ratio has
been calculated on the basis of NPA level as on 31.03.2017.
] ] () {
21 , 2011 . 87/21.04.048/2010-11 Whereas such provision coverage ratio (PCR) calculated as per
RBI circular No. DP.DC.87/21.04.048/2010-11, dated April 21,
] 30.09.2010 .2049.81
2011, based on NPA level as on 30.09.2010 Rs. 2049.81 crores
31.03.2017 ] and NPA provision as on 31.03.2017 works out to 440.01%, as
70% 440.01% . against minimum required 70%.
9. 9. Miscellaneous:
9.1 9.1 Amount of Provision made for income tax during the year:
( )
(Rs. in Crores)
2016-17 2015-16
128.02 322.52 Particulars 2016-17 2015-16
Provision for Income Tax 128.02 322.52
9.2 /
9.2 Provisions and Contingencies shown under the head
Expenditure in Profit and Loss Account
( )
(Rs. in Crores)
.. 31.03.2017 31.03.2016
S.
1 ] 3800.20 2110.29 Particulars 31.03.2017 31.03.2016
N.
2 /\ 0.00 26.42 1 Provision towards NPA 3800.20 2110.29
3 ] 147.55 22.55 2 Depreciation on investments in AFS/HFT 0.00 26.42
3 Provision for Non Performing Investment 147.55 22.55
4 /\ 0.00 0.00
Provision for Investment CDR/ Re-
5 0.00 3.33 4 0.00 0.00
structure
6 81.36 322.51 5
Provision for un-hedged foreign currency
0.00 3.33
exposure
7 / () 0.00 227.59
6 Provision for Income tax 81.36 322.51
8 (- ) 23.06 1.09
7 Deferred Tax Asset /Liability( Net) 0.00 227.59
9 95.96 55.68 8 Provision for fraud (Non Borrowal) 23.06 1.09
]() 4148.13 2769.46 9 Other provision and contingencies 95.96 55.68
Sub-total (A) 4148.13 2769.46
90
Jeeef<e&ke efjHees& 2016-17
91
Annual Report 2016-17
9.7 9.7 The details of Customer complaints dealt with by the Bank
during the year are as under:
-
S.
. 2016-17 2015-16 N.
Particulars 2016-17 2015-16
() No. of complaints pending
73 2 (a) 73 2
at the beginning of the year
() 2912 3218 No. of complaints received
(b) 2912 3218
during the year
()
2931 3147 (c)
No. of complaints redressed
2931 3147
during the year
() No. of complaints pending
54 73 (d) 54 73
at the end of the year
- The above figures does not include complaints received by
] - E-mail. The software for incorporating these complaints is
under preparation. However most of the E-mail complaints are
48 ] redressed in 48 hours
9.8 9.8 The details of awards passed by the Banking Ombudsman
are as under:
. S.
2016-17 2015-16 Particulars 2016-17 2015-16
N.
() No. of unimplemented
0 0
(a) Awards at the beginning of 0 0
() the year
11 10 No. of Awards passed by
(b) the Banking Ombudsman 11 10
() during the year
11 10
No. of Awards implement-
(c) 11 10
() ed during the year.
0 0 No. of unimplemented
(d) Awards at the end of the 0 0
9.9 year.
9.9 The details of Customer complaints on account ATM
transactions dealt with by the Bank during the year are as
. 2016-17 2015-16 under:
() S.
Particulars 2016-17 2015-16
0 0 N.
No. of complaints pending
() (a) at the beginning of the 0 0
334 603
year
() No. of complaints received
334 603 (b) 334 603
during the year
No. of complaints re-
() (c) 334 603
0 0 dressed during the year
No. of complaints pending
(d) 0 0
at the end of the year
Last year, the complaint figures were including ATM claims also.
, 2015-16 ] Now, the figures for 2015-16 are adjusted accordingly, the above
] - figures does not include complaints received by E-mail. The
48 ] software for incorporating these complaints is under preparation.
However most of the E-mail complaints are redressed in 48
9.10 hours
9.10 The details of awards passed by the Banking Ombudsman
on account of ATM transactions are as under:
. 2016-17 2015-16 S.
Particulars 2016-17 2015-16
() N.
0 0
(a)
No. of unimplemented Awards at
0 0
the beginning of the year.
()
3 8 No. of Awards passed by the
(b) Banking Ombudsman during 3 8
() the year
3 8
(c)
No. of Awards implemented dur-
3 8
() ing the year
0 0 No. of unimplemented Awards at
(d)
the end of the year
0 0
92
Jeeef<e&ke efjHees& 2016-17
\ .1838 1035 ( . During the current year, 1035 Trade credits amounting to Rs.
1838 crores (previous year 1189 trade credits amounting to
2360 1189 ) ]
Rs. 2360 crores) were sanctioned by the Bank and Letters of
\ ] Comfort issued by the branches in favour of various other banks
. for arranging trade credit to corporate clients.
31 \, 2017 . 334.97 340 31 As on 31st March 2017, 340 trade credits amounting to Rs.
\, 2016 . 811.36 360 . 334.97 crores were outstanding as against 360 trade credits
amounting to Rs. 811.36 crores as on 31st March, 2016
9.12
.10.93 (.11.46 ) .1.71 9.12 Bancassurance Business
(. 1.59 ) ] . The income earned under Bancassurance is Rs. 10.93 crores
(Rs 11.46 crores) and other income of Rs. 1.71 crores (Rs. 1.59
(. ) crores).The details of Bancassurance income is as under:
1 6.04 6.83 S.
] Nature of Income 2016-17 2015-16
N.
2 -] 4.81 4.60 For selling life insurance
1 6.04 6.83
policies
3 \ 0.08 0.03 For selling non-life insur-
2 4.81 4.60
ance policies
4 ( ) 1.71 1.59
For selling mutual fund
3 0.08 0.03
12.64 13.05 products
4 Others 1.71 1.59
9.13 ] ] () Total 12.64 13.05
(. )
9.13 Depositor Education and Awareness Fund (DEAF)
2016-17 2015-16 (Rs in Crores)
66.49 52.66 Particulars 2016-17 2015-16
Opening balance of amount
] 66.49 52.66
38.68 13.83 transferred to DEAF
Add: Amount transferred to
38.68 13.83
DEAF during the year
2.84 0.00 Less: Amount reimbursed by
2.84 0.00
DEAF towards claims
102.33 66.49
Closing balance of amount trans-
9.14 , 102.33 66.49
ferred to DEAF
/ , ]/ 9.14 Work is in progress for adjustment / reconciliation / elimination
/ . /, of inter-branch transactions, transactions with other banks
] / institutions, nominal accounts and old entries under other
assets and liabilities. Further reconciliation between balances
\ \ \ in subsidiary and general ledger in respect of certain deposit
. ] accounts, clearing accounts, other assets & liabilities and inter-
] . ] branch transfer of fixed assets is still under progress. The effect
of these including the consequential impact thereof on the
. revenue is not ascertainable. In the opinion of the management
10. ] consequential impact thereof on revenue is not material.
10. The Bank has complied with the Accounting Standards issued
by The Institute of Chartered Accountants of India (ICAI) to the
10.1 5 - , extent applicable as under:
. 10.1 Accounting Standard 5 Net Profit or Loss for the period, prior
period items and changes in accounting policies.
\ /
As prior period items of income / expenditure are not material,
/ . the same have been charged / accounted for in respective heads
of accounts
10.2 9- ]
10.2 Accounting Standard 9 Revenue Recognition
\ 17 6.1
As per Accounting Policy No. 6.1, given in Schedule -17
Significant Accounting Policies, certain items of income
.
are recognized on realization basis on account of statutory
requirements or on account of materiality.
93
Annual Report 2016-17
I. (. )
Change in the Present value of Defined Benefit Obligations: (Rs. in Crores)
] ]
.. PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
SN Particulars
31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
1 4182.24 3729.84 483.82 495.39 270.23 275.06
Opening Present Value of
Defined Benefit Obligation
2 ] 290.55 274.79 44.88 34.57 18.21 19.92
Interest Cost
3 \ 483.13 413.77 40.24 29.32 29.13 36.39
Current Service Cost
4 0.00 0.00 0.00 0.00 0.00 0.00
Past Service Cost
5 (349.20) (368.31) (93.76) (98.54) (37.75) (36.38)
Benefits Paid
6 \ () / 186.76 132.14 7.03 23.08 21.80 (24.76)
Actuarial (Gains)Losses
for the year
7 4793.48 4182.24 482.21 483.82 301.62 270.23
Closing Present Value of
Defined Benefit Obligation
94
Jeeef<e&ke efjHees& 2016-17
II. ] \ (. )
Change in the Fair Value of Plan Assets: (Rs. in Crores)
] ]
.. PENSION PLANS GRATUITY PLANS
SN Particulars
31.03.2017 31.03.2016 31.03.2017 31.03.2016
III. ( . )
Amount recognized in the Balance Sheet: (Rs. in Crores)
UNFUNDED DEFINED
FUNDED DEFINED BENEFIT OBLIGATIONS
. BENEFIT OBLIGA-
SN Particulars TIONS
] ]
PENSION PLANS GRATUITY PLANS OTAL LEAVE ENCASHMENT
31.03.17 31.03.16 31.03.17 31.03.16 31.03.17 31.03.16 31.03.17 31.03.16
1
Present Value of Defined
Benefit Obligations 4793.48 4182.24 482.21 483.82 5275.69 4666.06 270.23 270.23
2 ] \
Fair Value of Plan Assets (4769.00) (4180.48) (466.80) (481.86) (5235.80) (4662.34) (0.00) (0.00)
3
Net liability to be recognized 24.48 1.76 15.41 1.96 39.89 3.72 270.23 270.23
4
Other amount recognized in
the Balance Sheet 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5
Net liability recognized in the
Balance Sheet 24.48 1.76 15.41 1.96 39.89 3.72 270.23 270.23
IV ( . )
Amount recognized in the Profit & Loss Account: (Rs. in Crores)
.. ] ]
SN Particulars PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
1. 483.13 413.77 40.24 29.32 29.13 36.39
Current Service Cost
2. ] Interest Cost 290.55 274.79 44.88 34.57 18.21 19.91
3. ] (332.35) (321.70) (54.95) (42.80) 0.00 0.00
Expected Return on Plan Assets
4. ] ()/ 176.78 122.42 25.27 26.86 21.80 (24.76)
Actuarial (Gains)/Losses for the year
5. Past Service Cost 0.00 0.00 0.00 0.00 0.00 0.00
6. 618.12 489.28 55.44 47.96 69.14 31.54
Expense to be recognized
95
Annual Report 2016-17
7. /
() 0.00 0.00 0.00 0.00 0.00 0.00
Additional provision made / (write
back) during the year
8. \
\
Net expense recognized in Profit 618.12 489.28 55.44 47.96 69.14 31.54
& Loss Account and included in
Staff Cost
V. (. )
Reconciliation in the Net Liability recognized in the Balance Sheet (Rs. in Crores)
] ]
.. PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
S
Particulars
N 31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
VI. ] ( )
Actual Return on Plan Assets (Rs. in Crores)
] ]
.. PENSION PLANS GRATUITY PLANS
SN Particulars
31.03.2017 31.03.2016 31.03.2017 31.03.2016
. ] ]
PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
. Particulars
SN 31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
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10.5 17 -
Accounting Standard 17- Segment Reporting
.
Bank has identified its primary reportable segments as under:
:
Part A: Business segments (. ) Rs in crores
] / \
Treasury Corporate/ Wholesale Other Banking Total
Business Segments > Retail Banking
Banking Operations
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16
Particulars
] 4079.07 3106.57 5147.54 6676.80 3992.21 3899.26 351.21 389.65 13570.03 14072.27
Revenue
1317.49 323.79 (2616.86) (293.36) (896.99) 338.50 53.58 48.84 (2143.06) 417.77
Result
0.00 0.00
Unallocated expenses
\ (2143.07) 417.77
Operating profit
(770.56) 317.08
Taxes including deferred taxes
/ - -
Extraordinary profit/ loss Nil Nil Nil Nil Nil Nil Nil Nil
(1372.51) 100.69
Net profit
] :
Other Information:
48024.30 39000.66 58617.74 72228.59 39219.77 37924.10 11432.09 10859.27 157293.90 160012.62
Segment assets
2030.08 944.71
Unallocated assets
159323.98 160957.32
Total assets
47378.24 38336.91 55545.34 67345.86 36979.63 35167.74 12041.24 11319.67 151944.46 152170.18
Segment liabilities
0.00 0.00
Unallocated liabilities
] 7379.52 8787.14
Capital & Other Reserves
159323.98 160957.32
Total liabilities
a) Treasury segment includes Investment, balances with Banks
) ] , , \ ] outside India, Interest accrued on investments and related
. income there from.
) / , , , b) Corporate/Wholesale Banking Segments include all advances
] to trusts, partnership firms, companies, statutory bodies and
individuals etc. which are not included in Retail Banking
. Segments.
) / ] c) Retail Banking Segments include exposure to entity/concern
where
i) . 50 i. Total average annual turnover less than Rs.50 crores and
ii) ii. No aggregate exposure to one counter party exceeds 0.2%
0.2% of the overall retail portfolio of the Bank and
iii. The maximum aggregated retail exposure to one counterpart
iii) . 5 . is up to Rs. 5 crores.
) \ ] d) Other Banking Operations segment includes all other banking
transaction not covered under segments, specified above.
.
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Annual Report 2016-17
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. , E. As per RBI guidelines, monthly progress status has been
appraised to the Audit committee of the Board and status of
progress is reported to Board on quarterly basis.
]
F. As directed by the Audit Committee of the Board, proforma
\. financial statements for the nine months ended December 2016
^ 2016 has been prepared for better understanding and smoothening
the process of implementation.
. , G. The diagnostic study report covering gaps in policies, procedures
and systems and impacts on key areas has been prepared by
financial consultant. Evaluation of the reports is under progress
] to initiate necessary changes for effective implementation.
101
Annual Report 2016-17
III - 31.03.2017 3 - BASEL III PILLAR 3 DISCLOSURES FOR THE YEAR ENDED
31.03.2017
] 01.04.2013 III ] . RBI issued Basel III guidelines, applicable w.e.f. 01.04.2013. These
31.03.2019 III \ guidelines provide a transition schedule for Basel III implementation
. III ], ] till 31.03.2019. Upon full implementation, Basel III guidelines tar-
() 11.50% , -1 get minimum capital to risk-weighted assets ratio (CRAR) would be
8.00% -1 9.50% . 11.50%, minimum Common Equity Tier -1 ratio would be 8.00% and
minimum Tier 1 ratio would be 9.50%.
III [\ [ - Basel III framework consists of three mutually reinforcing pillars:
(i) 1 ] ( ], ] ] (i) Pillar 1: Minimum Capital Requirement (Credit Risk, Market Risk
\ ]) and Operational Risk)
(ii) Pillar 2: Supervisory Review and Evaluation Process
(ii) 2 (Evaluation)
(iii) Pillar 3: Market Discipline
(iii) 3 ]
Market Discipline (Pillar 3) consists of set of disclosures on capital ad-
] ( 3) ] ] [\ equacy and risk management framework of Bank. These disclosures
. . have been set out as under:
TABLE DF-1: SCOPE OF APPLICATION
-1 ]
Name of head of the banking group to which framework applies:
] \ - BANK OF MAHARASHTRA
(i) Qualitative Disclosures:
(i) :
/
Method of Method of
Name of entity/ consolidation consolidation Reasons for
Country of difference in
incorporation
(/) (/) method of
Whether entity is Whether entity is Reasons if consolidated
consolidation
included under included under under only one of the scopes
accounting scope of regulatory scope of of consolidation
consolidation consolidation
(yes / no) (yes / no)
] \
] Yes -21 No NA NA ,
.. --
() / Line by Line basis as per . 1 ] ]
The Maharashtra AS-21 issued by ICAI
.
Executors & Entity is not a banking
Trustee Co. Pvt Ltd company, hence outside
(METCO)/ India the purview of regulatory
consolidation. Capital
Investment is deducted from
CET1 capital of Bank.
]
(])/ Yes -23 No NA NA , .
Maharashtra Gramin
Bank (MGB)/ India Equity method Basis .
as per AS-23 issued by
ICAI
250% ]
Entity is RRB, an associate,
hence outside the purview
of regulatory consolidation.
Investment is risk weighted at
250%.
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Jeeef<e&ke efjHees& 2016-17
/ ]
Principle activity of ( % (
Name of the entity / the entity % of banks holding
Country of incorpo- in the total equity Regulatory treat-
ration
\) \)
Total Balance sheet ment of banks in- Total balance sheet
equity (as stated in vestments in the assets (as stated in
the accounting bal- capital instruments the accounting bal-
ance sheet of the le- of the entity ance sheet of the le-
gal entity) gal entity)
NIL
ii) ii) Quantitative Disclosures
) \ \ () c. List of group entities considered for consolidation
(accounting)
( . ) (Amount in Rs million)
/ ( (
Name of the entity / Country of \) \)
incorporation Principle activity Total Balance sheet equity (as Total balance sheet assets (as
of the entity stated in the accounting balance stated in the accounting balance
sheet of the legal entity) sheet of the legal entity)
] .. 29.77 139.91
()/ Trusteeship ( 100%)
The Maharashtra Executors & Trustee (BOM share 100%)
Co. Pvt Ltd (METCO)/ India
4191.55 88263.11
(]) ( 35%)
Maharashtra Gramin Bank (MGB)/India Banking
(BOM share 35%)
/ ]
Name of the insurance entity / Principle activity of ( /
Country of incorporation the entity \) ]
Total Balance sheet % Quantitative impact on
equity (as stated in the % of banks regulatory capital of using risk
accounting balance holding in the total weighting method versus using
sheet of the legal entity) equity / proportion the full deduction method
of voting power
103
Annual Report 2016-17
Qualitative Disclosures
. ] a. Capital Management
] ] Bank has a process for assessing its overall capital adequacy
] . in relation to Banks risk profile and a strategy for maintaining its
capital levels. Process provides an assurance that Bank has ad-
] ] . equate capital to support all risks inherent to its business. Bank
] \ actively manages its capital to meet regulatory norms by consid-
] . ering available options of raising capital.
[\ Organisational Set-up:
] ] Capital Management is administered by Financial Management
and Accounts Department in co-ordination with Integrated Risk
] . ] ] . Management Department under the supervision of Board of Di-
] rectors. Bank has also formed Capital Planning Committee to
] [\ ] provide guidance.
() ] ] ] Internal Assessment of Capital:
Banks Capital Management framework includes a comprehen-
, ] ,
sive Internal Capital Adequacy Assessment Process (ICAAP)
] .
conducted annually which determines adequate level of capi-
] ()
talisation for Bank to meet regulatory norms and current and fu-
] \,
ture business need, including under stressed scenarios. ICAAP
] ] ]
encompasses capital planning for two years time horizon, after
. ] ] ] identification and evaluation of significance of all risks that Bank
] ] ] faces, which may have an adverse material impact on its finan-
\ cial position. Bank considers following as risks it is exposed to in
the normal course of its business and considers them for capital
] (] ] planning:
] )
Credit Risk including Settlement Risk
] ] ] ] residuary risk
\ ] ] Market Risk Interest Rate Risk on Banking
Book
] ]
Operational Risk Reputational Risk
] ]
Credit Concentration Risk Strategic Risk
] ]
Liquidity Risk Pension Obligation Risk
]
] ] Country Risk Legal Risk
] , ] ] b. Capital Requirement
\ ] Banks capital requirements have been computed using Stand-
] ] . , ] ardized Approach for Credit Risk, Standardized Duration Method
for Market Risk and Basic Indicator Approach for Operational
\ ] ] 10.25% Risk. Minimum capital required to be held at 10.25% for credit,
] market and operational risks is given below:
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( . ) (Amount in Rs million)
Sr.
. . Particulars Amount Amount
No.
() ] ] (A) Capital Required for Credit Risk
Portfolios subject to Standardised
(i) 843030.92 (i)
Approach
843030.92
(ii) 0.00 (ii) For Securitisation Exposure 0.00
] 843030.92
Total capital charge for credit
] (i+ii) risks under standardized 843030.92
approach (i+ii)
(B) Market Risk
() ] ] (i) Interest Rate Risk 2583.61
(i) ] ] 2583.61 Foreign Exchange Risk (including
(ii) 0.45
(ii) ] ( ) 0.45 Gold)
(iii) Equity Risk 984.96
(iii) ] 984.96
Total capital charge for market
risks under standardized *3569.02
] ] ] *3569.02 duration approach (i+ii+iii)
(i+ii+iii)
Capital Charge for Operational
(C )
Risk
() \ ] ]
Under Basic Indicator Approach *7011.98
Under The Standardized
*7011.98 *6804.50
Approach (Parallel run)
() *6804.50
Standalone
(D) Capital Ratios
(In %)
() ] % Common Equity Tier 1 Capital
6.033
Ratio ( Excl CCB)
I ] 6.033 Capital Conservation Buffer
( ) 1.25
(CCB)
] () 1.25 Common Equity Tier 1 Capital
7.283
1 ] Ratio (Incl CCB)
7.283
() Tier 1 Capital Ratio (Incl CCB) 9.009
Total Capital Ratio( CRAR)
I ] ( ) 9.009 11.181
Including CCB
] () (*For market and operational risks capital charge is converted in RWA
11.181
@ 12.50 to arrive at CRAR as per RBI guidelines. Details in DF7 and
DF 8)
(* {
] \ ] ] 12.50 TABLE DF-3: CREDIT RISK - GENERAL DISCLOSURES
] 7 8 ) Qualitative Disclosures
--3 -- ] Credit Risk is defined as possibility of losses associated with diminution
in credit quality of borrowers or counterparties. In a banks portfolio,
losses stem from outright default due to inability or unwillingness of a
customer or counterparty to meet commitments in relation to lending,
] . trading, settlement and other financial transactions.
, ,
\ \ . Organizational Structure for Credit Risk Management
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Annual Report 2016-17
106
Jeeef<e&ke efjHees& 2016-17
iii) / iii) To ensure that all credit facilities are reviewed / renewed well in
time so as to revise risk perception and take necessary correc-
]
tive action if necessary, immediately.
.
iv) To aim at achieving maintenance of standard assets quality and
iv) ] () up gradation in non-performing assets (NPAs) so as to have a
] / / favourable impact on profitability of Bank through prevention /
reduction / up gradation of NPAs.
] .
v) To assess health of credit portfolio of Bank and to apprise Top
v) ]\ ] - Management about the same from time to time.
\\ . Checks and balances viz. separation of credit risk management from
]\ ] credit sanctions, system of assigning credit risk rating, validation of
ratings, mechanism to price credit facilities depending on risk rating
] , ] , of customer, credit audit etc. are in place. Minimum entry level rating
]\, ] benchmarks are stipulated. A suitable mechanism is in place to
, . monitor aggregate exposure on other banks and country exposures.
. A diversified credit portfolio is maintained and a system to conduct
. regular analysis of portfolio so as to ensure ongoing control of credit
concentration is in place.
- ] ]
] ] . Loans past due and Impaired:
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Annual Report 2016-17
31.03.2017 Category
31.03.2017
1160000.00 Overseas Domestic
- 204391.30 Fund Based NIL 1160000.00
Non-Fund Based NIL 204391.30
2. : ( )
3. Industry-wise Distribution: (Amount in Rs million)
31.03.2017
Sr.
No.
Industry Funded Exposure Non-Fund Exposure
1160000.00 Mining and Quarrying (incl.
- 204391.30 3.1 14779.00 5584.50
Coal)
3. 3.2 Food Processing 7582.30 80.50
(. ) 3.2.1 Sugar 5134.70 26.60
. - 3.2.2 Edible Oil and Vanaspati 126.80 0.00
3.1 ( ) 14779.00 5584.50 3.2.3 Tea 0.80 0.50
3.2 7582.30 80.50 3.2.4 Others 2320 53.40
3.2.1 \ 5134.70 26.60 3.3 Beverage and Tobacco 202.20 9.10
3.2.2 126.80 0.00 3.4 Textiles 27744.90 3736.80
3.2.3 \ 0.80 0.50 3.4.1 Cotton Textiles 9943.70 1362.90
3.2.4 2320 53.40 3.4.2 Jute Textiles 356.70 88.50
3.3 (Beverage) 202.20 9.10 3.4.3 Man-Made Textiles 19.50 13.70
3.4 27744.90 3736.80 3.4.4 Other Textiles 17425.00 2271.70
3.4.1 9943.70 1362.90 Leather and Leather Prod-
3.5 775.40 35.60
3.4.2 356.70 88.50 ucts
3.4.3 19.50 13.70 3.6 Wood and Wood Products 1362.60 200.00
3.4.4 17425.00 2271.70 3.7 Paper and Paper Products 5655.00 426.60
3.5 \ \ 775.40 35.60 Petroleum, Coal Products
3.8 10911.20 377.50
and Nuclear Fuels of which:
3.6 1362.60 200.00
3.8.1 Petroleum 7519.50 25.30
3.7 ] ] 5655.00 426.60
Chemicals and Chemical
3.8 , 3.9 34906.80 2422.30
Products
] : 10911.20 377.50
3.8.1 7519.50 25.30 3.9.1 Fertiliser 17156.10 447.00
3.9 34906.80 2422.30 3.9.2 Drugs & Pharmaceuticals 10207.40 720.20
3.9.1 17156.10 447.00 3.9.3 Petro Chemicals 5980.90 1026.00
3.9.2 ] 10207.40 720.20 3.9.4 Others 1562.40 229.10
3.9.3 5980.90 1026.00 Rubber, Plastic & their Prod-
3.10 5493.90 1232.40
3.9.4 1562.40 229.10 ucts
3.10 , 5493.90 1232.40 3.11 Glass & Glassware 1168.50 143.40
3.11 \ \ 1168.50 143.40 3.12 Cement & Cement Products 11950.40 440.60
3.12 11950.40 440.60 3.13 Basic Metal & Metal Product 55864.70 12485.60
3.13 55864.70 12485.60 3.13.1 Iron & Steel 31164.70 3547.10
3.13.1 31164.70 3547.10 3.13.2 Other Metal & Metal Product 24700.00 8938.50
3.13.2 24700.00 8938.50 3.14 All Engineering 41416.80 29766.90
3.14 41416.80 29766.90
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. - Sr.
Industry Funded Exposure Non-Fund Exposure
3.14.1 8911.30 5352.30 No.
3.14.2 32505.50 24414.60 3.14.1 Electronics 8911.30 5352.30
3.14.2 Others 32505.50 24414.60
3.15 ]
20229.00 801.30 Vehicles, Vehicle Parts &
3.15 20229.00 801.30
3.16 ] 5072.60 1170.30 Transport Equipment
3.17 ( \ ) 1199.10 9.00 3.16 Gems & Jewellery 5072.60 1170.30
3.18 \ 110543.90 56078.80 3.17
Construction (other than In-
1199.10 9.00
3.18.1 56866.70 10047.90 frastructure)
3.18.2 1504.80 20062.10 3.18 Infrastructure 110543.90 56078.80
3.18.3 31074.50 17033.50 3.18.1 Power 56866.70 10047.90
3.18.4 2947.20 0.20 3.18.2 Telecommunication 1504.80 20062.10
3.18.5 3605.80 1.00 3.18.3 Roads 31074.50 17033.50
3.18.6 ( ) 151.30 1502.70 3.18.4 Airports 2947.20 0.20
3.18.7 \ 14393.60 7431.40
3.18.5 Ports 3605.80 1.00
3.19 9028.00 2976.80
Railways (other than Indian
3.20 794113.70 86413.30 3.18.6 151.30 1502.70
Railways)
1160000.00 204391.30 3.18.7 Other Infrastructure 14393.60 7431.40
] 5% . 3.19 Other Industries 9028.00 2976.80
3.20 Residuary Other Advances 794113.70 86413.30
% Total 1160000.00 204391.30
-- -- Industry having more than 5% of gross credit exposure
4. (. ) Industry % of Exposure
-- --
4. Residual Maturity break down of Assets:
1 110.00 8802.90 6369.69 (Amount in Rs million)
2 7 1494.58 13631.88 33555.65
8 14 0.00 36436.27 339.67 Foreign
Invest-
15 30 3555.78 38948.66 9175.24 Maturity Pattern Advances Currency
ments
Assets
31 2 4185.68 24868.15 6244.75
2 3 1 day 110.00 8802.90 6369.69
2266.07 21398.11 11403.51 2 to 7 days 1494.58 13631.88 33555.65
3 6 8 to 14 days 0.00 36436.27 339.67
15967.06 106000.71 8895.06 15 to 30 days 3555.78 38948.66 9175.24
6 1 31 days to 2 months 4185.68 24868.15 6244.75
13989.10 76539.80 6614.77 Over 2 months to 3 months 2266.07 21398.11 11403.51
1 3 Over 3 months and up to 6 months 15967.06 106000.71 8895.06
62022.41 373960.36 0.00 Over 6 months and up to 1 year 13989.10 76539.80 6614.77
3 5 Over 1 year and upto 3 years 62022.41 373960.36 0.00
40838.46 141882.37 0.00 Over 3 years and upto 5 years 40838.46 141882.37 0.00
5 243986.49 172898.38 0.00 Over 5 years 243986.49 172898.38 0.00
388415.63 1015367.59 82598.34 Total 388415.63 1015367.59 82598.34
31.03.2017 31.03.2017
() ] (A) Gross NPA
52842.26 Sub-standard 52842.26
1 66441.88
2 46044.61 Doubtful 1 66441.88
3 4774.58 Doubtful 2 46044.61
1783.81 Doubtful 3 4774.58
171887.14
Loss 1783.81
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Annual Report 2016-17
\1 E1 Specific Provision
i. 32666.28 i. Opening Balance 32666.28
ii. Provisions made during the year 36883.42
ii. 36883.42
iii. Write-off made during the year 13751.93
iii. 13751.93 iv. Write-back of excess provisions 0.00
iv. 0.00 Any other adjustments including
v. 560.92
v. \ ] 560.92 transfer between provisions
vi. (i+ii-iii-iv(+/-v) 56358.68 vi. Closing Balance (i+ii-iii-iv(+/-v) 56358.68
E2 General Provisions
\2
i. Opening Balance 1589.85
i. 1589.85 ii. Provisions made during the period 0.00
ii. 0.00 iii. Write-off made during the period 0.00
iii. 0.00 iv. Write-back of excess provisions 0.00
iv. 0.00 Any other adjustments including
v. 0.00
transfer between provisions
v. \ ] 0.00
vi. Closing Balance (i+ii-iii-iv(+/-v) 1589.85
vi. (i+ii-iii-iv(+/-v) 1589.85
(F) Write off during the year 13751.93
() 13751.93
Recovery in the written off accounts
(G) 448.10
(]) 448.10 during the year
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() (K) Industry-wise
a. Qualitative Disclosures:
.
For portfolios under Standardised Approach:
Bank uses standardized approach to measure capital require-
ments for credit risk. As per Standardised Approach, Bank ac-
, ] ]
cepts rating of following RBI approved ECAI (External Credit
. ] Assessment Institution) for credit risk rating and has used these
( ) ratings for calculating risk weighted assets wherever such rat-
] ] ings are available.
. 1.
Credit Rating Information Services of India Limited (CRISIL),
1. \ () 2.
Credit Analysis and Research limited (CARE),
2. \ () 3.
India Ratings,
3. 4.
ICRA Limited,
4. 5.
Brickwork,
5. 6.
SME Rating Agency of India Ltd. (SMERA)
6. ] . () Types of exposures for which each agency is used:
] ] Bank has used solicited ratings assigned by the above approved
] credit rating agencies for all eligible exposures. Bank has not made
. ] any discrimination among ratings assigned by these agencies nor has
restricted their usage to any particular type of exposure.
.
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Annual Report 2016-17
: As required by the regulatory norms, Bank holds capital even for the
undrawn portion of credit facilities which are not unconditionally can-
cellable without prior notice by Bank, by converting such exposures
] ] ] () into a credit exposure equivalent based on the applicable Credit Con-
\ version Factor (CCF).
. b. Quantitative Disclosures:
.
Exposure amounts as of 31.03.2017 after risk mitigation subject to
] ( Standardized Approach, amount of a Banks outstandings (rated and
) , ] unrated) disclosed under following major risk buckets:-
31.03.2017 - (Amount in Rs million)
( )
Exposure
Sr. No. Particulars
. Outstanding
i 100% ] 1331261.74 i Below 100 % risk weight 1331261.74
ii 100% ] 334610.53 ii 100 % risk weight 334610.53
iii 100% ] 179599.10 iii More than 100 % risk weight 179599.10
sub total 1845471.37
] 1845471.37
iv Deducted CRM Value 45417.36
iv 45417.36
Total Exposure 1890888.73
1890888.73
TABLE DF-5 CREDIT RISK MITIGATION: DISCLOSURES FOR
--5- ] - STANDARDISED APPROACHES
Qualitative Disclosures
] Policies for Credit Risk Mitigation:
] Bank has a Board approved policy framework for collateral
] - management and credit risk mitigation techniques, which in-
, clude among other aspects guidelines on acceptable types of
] collateral, ongoing monitoring of collateral including frequency
and basis of valuation and application of credit risk mitigation
. techniques.
Collateral Management
Bank defines collateral as it is an additional security given, over
. and above primary security or in substitution thereof. It serves
\ / as an additional comfort to Bank for recovery of loans in default
. situations. At times, these securities are not connected to main
business of the borrower or may not be owned by the borrower.
.
Bank ensures that underlying documentation for collateral
] \ provides Bank appropriate rights over collateral or other forms
of credit enhancement including right to liquidate/retain or take
] ] legal possession of it in a timely manner in the event of default
. by counterparty.
Collateral Valuation
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Jeeef<e&ke efjHees& 2016-17
] ] reduces its exposure to counterparty when calculating its
capital requirements to the extent of risk mitigation provided by
eligible financial collateral as specified in Basel III guidelines.
. ] . Bank also applies appropriate haircuts. Bank has also put in
] place Lending Policy duly approved by Board, which lay down
, / the types of securities normally accepted by Bank for lending,
and administration / monitoring of such securities in order to
safeguard/protect the interest of Bank so as to minimize risk
] ] . associated with it. Both fixed and current assets obtained to
] \ \ , secure loans granted by Bank as per policy prescription are
] subjected to valuation by outside valuers empanelled by Bank.
In respect of high value of collateral, valuation from two or more
. \\
valuers is obtained.
].
Description of main types of collateral taken by Bank
For computation of capital requirement for Credit Risk, Bank
recognizes only those collaterals that are considered as eligible
] ] for risk mitigation in RBI guidelines, which are as under:
] {
o Cash Deposit with bank
] . -
o Gold, including bullion and Jewellery
o ]
o Securities issued by Central and State Governments
o ,
o Kisan Vikas Patra and National Savings Certificate
o ] ]
o Life Insurance Policies with a declared surrender value of
o \
an insurance company which is regulated by the insurance
o sector regulator
] o Debt securities including Certificate of Deposit rated at
o -- (-),3 . least BBB(-),A3
o \ ] o Units of Mutual Funds, where the investment is in
. instruments mentioned above
Main types of guarantor counterparty and their
creditworthiness
] , ] Wherever required Bank obtains personal or corporate
] guarantee as an additional comfort for mitigation of credit risk
] ] . \ which can be translated into a direct claim on the guarantor which
is unconditional and irrevocable. Bank also accepts guarantee
]/ /]/ ]
given by State / Central Government/ECGC/CGTMSE/NCGTC
. as a security comfort.
] Concentrations within Credit Risk Mitigation
{ ] RBI guidelines, among its conditions for eligible credit risk
mitigants, require that there should not be a material positive
correlation between the credit quality of the counterparty and the
- . , value of the collateral being considered. Currently, Bank does
] ] . not have any concentration risk within credit risk mitigation.
Quantitative Disclosures:
(a) For each separately disclosed credit risk portfolio total exposure
) - ] ]
(after, where applicable, on or off balance sheet netting) that is
(] covered by eligible financial collateral after application of hair-
) cuts.
(Amount in Rs million)
(. )
31.03.2017
31.03.2017
Total exposure (after, where applicable, on or off 45417.36
] 45417.36 balance sheet netting) that is covered by eligible
( financial collateral after application of haircuts
] , ] ) (b) For each separately disclosed portfolio total exposure (after,
where applicable, on- or off-balance sheet netting) that is
) - (] covered by guarantees/credit derivatives (whenever specifically
) / (] permitted by RBI)
{ ) (Amount in Rs million)
(. ) 31.03.2017
Total exposure that is covered by Guarantees 22631.69
31.03.2017
22631.69
113
Annual Report 2016-17
114
Jeeef<e&ke efjHees& 2016-17
] . i.e. identified, measured, controlled and monitored in such a way that
risk taken is within the approved risk tolerance limits. The scope of
{ ]
this policy covers market risks arising from Banks Trading book and
. investment portion of Banking book.
Quantitative Disclosure:
] ] ] - Capital requirement for Market Risk is as under:
( . )
(Amount in Rs million)
31.03.2017
] 31.03.2017
] ]
Capital Risk
Risk Category
Charge Weighted
i ] ] 2583.61 32295.13 Assets
ii ] 984.96 12312.00 i Interest Rate Risk 2583.61 32295.13
iii ] ( ) 0.45 5.60 ii Equity Position Risk 984.96 12312.00
iii Foreign Exchange Risk (including
0.45 5.60
gold)
] ] ] *3569.02 44612.73 Total capital charge for market
(i+ii+iii) risks under standardized duration *3569.02 44612.73
approach (i+ii+iii)
(* ] ] { ]
\ 12.50 (*For market risks capital charge is converted in RWA @ 12.50 to
arrive at CRAR as per RBI guidelines.)
)
TABLE DF-8 OPERATIONAL RISK
-8--\ ]
Qualitative disclosures:
\ ] Operational risk:
115
Annual Report 2016-17
Quantitative Disclosure:
\ ] ] .7011.98 Capital charge for Operational Risk under Basic Indicator approach
is Rs 7011.98 Million.
.
TABLE DF-9 INTEREST RATE RISK IN THE BANKING BOOK
-9 - ] ] () (IRRBB)
Qualitative Disclosures:
] ]
Interest Rate Risk in the Banking Book:
] ] () ]
Interest Rate Risk in Banking Book (IRRBB) refers to potential
. ] adverse financial impact on Banks Banking Book from changes in
] ] . interest rates. Interest rate risk is measured and monitored through
two approaches.
i. ] - (] )
(i) Earnings at Risk: Impact on income (Earning Perspective) is
100 measured through use of Traditional Gap Analysis by applying
( ] ) notional rate shock (parallel shift in interest rates across assets
. and liabilities) upto 100 basis point (bps) for a period of one year.
(ii) Economic Value of Equity (Duration Gap Analysis): Bank
ii. ( ) - has adopted Duration Gap Analysis for assessing impact (as a
{ ^ percentage) on economic value of equity (Economic Value Per-
( ) ( ) spective) in line with the method suggested by RBI.
. Impact on Economic Value of Equity is analysed for a 200 bps
rate shock as indicated by RBI. The Economic Value of Equity is
] 200 measured and monitored on a quarterly basis.
. Quantitative Disclosure: Earning at Risk:
] .
(Amount in Rs. Million)
] ] (. )
Change in Interest Parallel shift of 100 bps for 1 Year period
] 100 rate 31.03.2017
(+) 100 basis point (-) 100 basis point
31.03.2017 Impact on Net 2776.78 - 2776.78
Interest Income
(+)100 (-)100
Economic Value of Equity:
] 2776.78 - 2776.78
31.03.2017
(. ) Impact on economic (+) 200 basis point (-) 200 basis point
value of equity -10809.45 10809.45
31.03.2017 TABLE DF-10: GENERAL DISCLOSURE FOR EXPOSURES
(+)200 (-)200 RELATED TO COUNTERPARTY CREDIT RISK
-10809.45 10809.45 Qualitative Disclosures:
10 ] Bank is participating in derivative market as a user to hedge risk of
underlying exposure of its own and that of its customers. Keeping
in view business composition of Bank, nature and mix of clients,
capital requirement as also risk appetite, Bank is dealing in following
] \ derivative products:
Currency futures
. ,
Foreign Exchange Forward contracts and currency swaps.
, ] - ] Interest Rate Swaps OIS & IRS.
-
Bank at present is not undertaking transactions under Credit Default
Swaps and Currency options.
-
Measurement and management of various risks is ensured by setting
] - -
up various limits such as counter party limits, stop loss limits, Day light
- Limits, Overnight limit, Stop Loss Limits and exposure limits etc. at
. various levels. Utilization of such limits would be subject to guidelines
of RBI/SEBI/Exchanges.
- ], ,
From exchange side, limits stipulated are (1) initial margin (2) mark to
, - , ,
market margins (3) open interest. Bank is complying with these limits.
] ] .
{ / / In respect of currency futures transactions, Bank is maintaining
account with exchange approved Bank for purpose of clearing and
] . settlement of transactions and also maintains margin in the form of
(1) ] (2) ] \ cash/bank deposits/bank guarantees/ G-Sec or any other approved
] (3) ] . . securities.
116
Jeeef<e&ke efjHees& 2016-17
- Purpose of booking forward contracts is to hedge an exposure to
exchange risk in respect of transaction for which sale and/or purchase
- , / ]/
of foreign exchange is permitted under FEMA 1999. Bank offers to
/ ] its customers, forward contract as a product for hedging their foreign
. currency exchange risk.
] - Bank is doing IRS/FRA deals only with those counterparty banks
\ , ] 1999 / which have executed ISDA Master agreement/CSAs and for whom
Bank has set up counterparty exposure limits.
. ] \
. Bank has made requisite provision on credit exposure of derivative
contracts computed as per current exposure method & as per RBI
/ guidelines.
] ^/ ] Bank will describe methodology and will assign economic capital
. for counter party credit exposure, as and when Bank migrates to
{ Advanced Approach of measurement of Risk and related Capital
requirement.
.
(a) Quantitative Disclosures
] ] ]
, (Amount in Rs. million)
] . Sr. Particulars 31.03.2017
() ( ) No.
1 Replacement Cost 3013.03
.. 31.03.2017
2 Potential Future Exposure 1863.19
1 3013.03
3 Gross Credit Equivalent 4876.22
2 1863.19
Comprising:
3 4876.22
3.1 Interest Rate Contract 7.53
3.1 ] 7.53 3.2 Credit Derivatives Contract 0.00
3.2 0.00 3.3 Equity Contracts 0.00
3.3 0.00 3.4 Foreign Exchange Contracts and Gold 4868.69
3.4 4868.69 3.5 Commodities Contracts 0.00
3.5 0.00 4 Gross Credit Equivalent Amount 4876.22
4 4876.22 5 Less: Effect of Netting Arrangements 0.00
5 0.00 6 Credit Equivalent Amount after net- 4876.22
ting (4-5)
6 (4-5) 4876.22
7 Less: Collateral Amount 0.00
7 0.00
7.1 Eligible Financial Collateral 0.00
7.1 0.00 7.2 Other Eligible Collateral 0.00
7.2 0.00 8 Net Credit Equivalent Amount 4876.22
8 4876.22 Counterparty credit exposure is mitigated by exposure netting
through ISDA agreements and recognition of eligible collateral,
^ \ effect of which have been included in regulatory capital calcula-
, ] \ tions where appropriate.
] . (b) Credit Derivatives Transactions-
() - ( ) (Amount in Rs Million)
\ Credit
Notional of
Derivatives
Particulars Protection
Protection
Bought
Sold
Own Credit Portfolio NIL NIL
Client Intermediation Activities NIL NIL
117
Annual Report 2016-17
] ( 01 , III Amounts
Basel III common disclosure template to
subject
2013 31 , 2017) 31.03.17 be used during the transition of regulatory As on
to Pre- Ref. No.
III adjustments (i.e. from April 01, 2013 to 31.03.17
BASEL III
December 31, 2017)
I ] Treatment
Common Equity Tier 1 capital:
instruments and reserves
] 44056.17
1 Directly issued qualifying common share 44056.17
] ( )* 1 capital plus related stock surplus (share
2 -13919.98 8(a) premium) *
\ ( 46058.60 2+3+ 2 Retained earnings -13919.98 B8(a)
3 , ) 4+5 Accumulated other comprehensive income 46058.60 B2+B3+B4
+6() 3 (other reserves, revaluation reserves and + B5
DTA) +B6(a)
1 ] ] 0.00
4 Directly issued capital subject to phase out 0.00
] ( - ) 4 from CET1 (only applicable to non-joint
1 ], 2018 0.00 stock companies)
] ]
Public sector capital injections 0.00
grandfathered until 1 January 2018
] 0.00
Common share capital issued by 0.00
5 ] ( 1 5 subsidiaries and held by third parties
) (amount allowed in group CET1)
6 ] 76194.79 6
Common Equity Tier 1 capital before 76194.79
I ] regulatory adjustments
Common Equity Tier 1 capital:
I ] regulatory adjustments
]
7 Prudential valuation adjustments 0.00
7 ] 0.00 8 Goodwill (net of related tax liability) 0.00
8 ( ) 0.00 Intangibles other than mortgage-servicing 178.20 178.200 K1(b)
9
178.20 178.200 1(b) rights (net of related tax liability)
9 10 Deferred tax assets 6482.94
( )
11 Cash-flow hedge reserve 0.00
10 6482.94
12 Shortfall of provisions to expected losses 0.00
11 - \ 0.00 13 Securitisation gain on sale 0.00
12 0.00 Gains and losses due to changes in own 0.00
14
13 0.00 credit risk on fair valued liabilities
15 Defined-benefit pension fund net assets 0.00
\ ] 0.00
14 Investments in own shares (if not already 0.00
netted off paid-up capital in reported
15 0.00 16 balance sheet)
( \ 0.00 * Including share application money
16 money
] )
Reciprocal cross-holdings in common 0.00
0.00 17
17 equity
* Investments in the capital of banking,
, financial and insurance entities that 0.00
] 0.00 are outside the scope of regulatory
] 18 consolidation, net of eligible short
18 positions, where the bank does not own
] ] 10 more than 10% of the issued share capital
( 10 (amount above 10% threshold)
) Significant investments in the common 0.00
0.00 stock of banking, financial and insurance
, ( entities that are outside the scope of
19 19
) regulatory consolidation, net of eligible
short positions (amount above 10%
(10 ) threshold)
( 10 0.00 Mortgage servicing rights (amount above 0.00
20 20
) 10% threshold)
0.00 Deferred tax assets arising from temporary 0.00
21 ( 10 21 differences (amount above 10% threshold,
) net of related tax liability)
118
Jeeef<e&ke efjHees& 2016-17
119
Annual Report 2016-17
120
Jeeef<e&ke efjHees& 2016-17
] - 0.00
72
0.00
73
121
Annual Report 2016-17
122
Jeeef<e&ke efjHees& 2016-17
44 ] - 0.00 44a Excess Additional Tier 1 Capital not reckoned for capital adequacy 0.00
(difference between AT1 as reported in row 44 and admissible AT1
I ] ( 44 1 as reported in 44a
44 1 \
of which: Excess AT1 which is considered as Tier 2 capital under 0.00
) row 58b
] 1, ] 58 0.00 50 Eligible Provisions included in Tier 2 capital 6918.50
\ II ] Eligible Revaluation Reserves included in Tier 2 capital 0.00
50 2 ] 6918.50 Total of Row 50 6918.50
2 ] 0.00
TABLE DF-12: COMPOSITION OF CAPITAL RECONCILIATION
50 6918.50 REQUIREMENT
Step 1
-12 ] -
(Rs. In Million)
\ 1
( ) Balance sheet Balance Sheet
as in published Under regulatory
financial scope of
- statements consolidation
As on 31.03.2017 As on 31.03.2017
A Capital & Liabilities
31.03.2017 31.03.2017 Paid-up Capital 11683.34
] Reserves & Surplus 62111.91
i
i ] 11683.34 Minority Interest 0.00
62111.91 Total Capital 73795.25
] 0.00 Deposits of which: 1390528.38
] 73795.25 Deposits from banks 18081.14
ii
Customer deposits 508890.96
ii ] ] 1390528.38
Other deposits 863556.28
] 18081.14
Borrowings of which: 81366.52
] 508890.96
From RBI 0.00
] 863556.28 From Banks 0.00
iii ] 81366.52 iii
From other institutions & agencies 28930.00
{ 0.00 Borrowings in the form of bonds & 52250.00
0.00 debentures capital instruments
] 28930.00 Borrowings from outside India 186.52
\ ] 52250.00 iv Other Liabilities and Provision 47549.67
Total Capital & Liabilities 1593239.81
186.52
iv 47549.67 B Assets
] 1593239.81 Cash and Bank Balance with Reserve 152747.19
i
Bank of India
Balance with banks and money at call 13673.02
{ 152747.19
i and short notice
ii Investments of which: 385901.85
13673.02 of which: Government securities 331043.96
\ of which: Other approved securities 0.00
ii 385901.85 of which: Shares 3623.58
] 331043.96 of which: Debentures & Bonds 16728.23
] 0.00 of which: Subsidiaries / Joint Ventures / 734.21
Associates
] 3623.58 of which: Others (Commercial Papers, 33771.87
] \ 16728.23 Mutual Funds etc.)
] / 734.21 iii Loans and Advances of which: 955152.30
/ Loans and Advances to banks 149.14
] (] , 33771.87 Loan and Advances to Customers 955003.16
\ )
iii ] 955152.30
149.14
955003.16
123
Annual Report 2016-17
124
Jeeef<e&ke efjHees& 2016-17
\ 3 Step 3
III (] )- 11 Extract of Basel III common disclosure template (with added column)
DF 11
I ] Common Equity Tier 1 capital: instruments and reserves
\ 2 Component Source based
of regulatory on reference
] capital numbers/
reported by letter s of the
bank balance sheet
under the
/ regulatory
scope of
consolidation
from step 2
44056.16
Directly issued qualifying 44056.16
1 ] ]* (
common share * (and
- ) 1 equivalent for non-joint stock
2 -13919.98 8 () companies) capital plus related
\ ( 46058.60 2+3+4 stock surplus
3 2 Retained earnings -13919.98 B8(a)
) +5+6()
Accumulated other 46058.60 B2+B3+
1 ] 0.00 3 comprehensive income B4+B5+B6(a)
4 ] ] ( - (and other reserves)
) Directly issued capital subject 0.00
] 0.00 to phase out from CET1 (only
4
5 ] applicable to non-joint stock
( 1 ) companies)
Common share capital issued 0.00
6 ] 76194.79
5
by subsidiaries and held by
I ] third parties (amount allowed in
7 ] 0.00 group CET1)
Common Equity Tier 1 76194.79
8 ( ) 0.00 6 capital before regulatory
adjustments
(* ) 7 Prudential valuation 0.00
adjustments
8 Goodwill (net of related tax 0.00
liability)
(* Including share application money)
125
-13 ] DF-13: Main Features of the Regulatory Capital Instruments
Regulatory treatment
4 III II II II II II II II
Transitional Basel III rules I I I I
Additional Tier I Additional Tier I Additional Tier I Additional Tier I Tier II Bonds Tier II Bonds Tier II Bonds Tier II Bonds Tier II Bonds Tier II Bonds Tier II Bonds
5 III
126
Post-transitional Basel III rules Ineligible Ineligible Eligible Eligible Ineligible Ineligible Ineligible Ineligible Ineligible Ineligible Eligible
6 //
Eligible at solo/group/ group& solo Solo Solo Solo Solo Solo Solo Solo Solo Solo Solo Solo
7 2 2 2 2 2 2 2
Instrument type - - -
Perpetual Debt Perpetual Debt Perpetual Debt Perpetual Debt Upper Tier Upper Tier Upper Tier Subordinated Subordinated Subordinated Subordinated
Instruments Instruments Instruments Instruments II-Debt II-Debt II-Debt Tier II-Debt Tier II-Debt Tier II-Debt Tier II-Debt
Instruments Instruments Instruments Instruments Instruments Instruments Instruments
8 ] \ 1125 350 10000 5000 1000 500 1500 400 520 5000 5000
(
)
Amount recognised in regulatory capital (Rs. in
million, as of most recent reporting date)
9 ( ) 1 1 1 1 1 1 1 1 1 1 1
Par value of instrument(Rs in million)
10 Accounting classification - - - - - - - - - - -
Liability- Liability- Liability- Liability- Liability- Liability- Liability- Liability- Liability- Liability- Liability-
borrowing borrowing borrowing borrowing borrowing borrowing borrowing borrowing borrowing borrowing borrowing
Annual Report 2016-17
IPDI II Tier II Bonds
11 ] 31.07.2007 30.09.2009 12.01.2015 15.12.2016 19.07.2007 30.09.2009 01.02.2010 15.01.2008 30.09.2009 31.12.2012 27.06.2016
Original date of issuance
12
Perpetual or dated Perpetual Perpetual Perpetual Perpetual Dated Dated Dated Dated Dated Dated Dated
13 19.07.2022 30.09.2024 01.02.2025 15.04.2018 30.04.2019 31.12.2022 27.09.2026
Original maturity date
Jeeef<e&ke efjHees& 2016-17
No Maturity No Maturity No Maturity No Maturity
14 ] Yes Yes Yes Yes Yes Yes Yes No No No No
Issuer call subject to prior supervisory
approval
15 , 31.07.2017 30.09.2019 12.01.2020 15.12.2021 19.07.2017 30.09.2019 01.02.2020 NA NA NA NA
\
Optional call date, contingent call dates and
redemption amount
16 , No No No NA NA NA NA
Subsequent call dates, if applicable
31.07.2017 30.09.2019 12.01.2020 15.12.2021
127
On each On eah On each On each
anniversery anniversery Anniversery Anniversery
after after after after
31.07.2017 30.09.2019 12.01.2020 15.12.2021
subject to RBI subject to RBI subject to RBI subject to RBI
Approval Approval Approval Approval
/
Coupons / dividends
17 / Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed
Fixed or floating dividend/coupon
18 \ 10.65% 9.25% pa 9.48% pa 11.60% pa 10.35%pa 8.95%pa 8.65%pa 9.20%pa 8.74%pa 9.00%pa 9.20%pa
Coupon rate and any related index
19 Yes Yes Yes Yes Yes Yes Yes No No No Yes
Existence of a dividend stopper
20 /
Full Full Mandatory Mandatory Mandatory Full
Fully discretionary, partially discretionary or Partially Partially Discretionary Discretionary Partially Partially Partially Discretionary
mandatory Discretionary Discretionary Discretionary Discretionary Discretionary
IPDI II Tier II Bonds
21 \ Yes Yes No No Yes Yes No No No No No
Existence of step up or other incentive to
redeem
22 \ \ \ \ \ \ \ \ \ \ \ \ \
Noncumulative or cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative Non Cumulative
23
Convertible or non-convertible Non Non Non Non Non Non Non Non Non Non Non
Convertible Convertible Convertible Convertible Convertible Convertible Convertible Convertible Convertible Convertible Convertible
24
If convertible, conversion trigger (s) NA NA NA NA NA NA NA NA NA NA NA
25
If convertible, fully or partially NA NA NA NA NA NA NA NA NA NA NA
26 ,
If convertible, conversion rate NA NA NA NA NA NA NA NA NA NA NA
27
NA NA NA NA NA NA NA NA NA NA NA
If convertible, mandatory or optional
conversion
128
28 ]
NA NA NA NA NA NA NA NA NA NA NA
If convertible, specify instrument type
convertible into
29 ]
, ] NA NA NA NA NA NA NA NA NA NA NA
If convertible, specify issuer of instrument it
converts into
30 Write-down feature No No Yes Yes No No No No No No Yes
31
If write-down, write-down trigger(s) NA NA Event Specific Event Specific NA NA NA NA NA NA
Point of Non-
viability trigger
32 Full Full Full
NA NA NA NA NA NA NA NA
If write-down, full or partial
33
NA NA Permanent Permanent NA NA NA NA NA NA Permanent
If write-down, permanent or temporary
Annual Report 2016-17
IPDI II Tier II Bonds
34
NA NA NA NA NA NA NA NA NA NA NA
If temporary write-down, description of write-
up mechanism
35
( ], ], ], ], ] ] ] ] ] ] ]
Jeeef<e&ke efjHees& 2016-17
)
Position in subordination hierarchy in II II II II All other All other All other All other All other All other All other
liquidation (specify instrument type Depositors and Depositors and Depositors and Depositors and Depositors and Depositors and Depositors and
immediately senior to instrument)
Creditors of the Creditors of the Creditors of the Creditors of the Creditors of the Creditors of the Creditors of the
All other All other All other All other
Bank Bank Bank Bank Bank Bank Bank
Depositors, Depositors, Depositors, Depositors,
Creditors and Creditors and Creditors and Creditors and
Tier II Bond Tier II Bond Tier II Bond Tier II Bond
holders of the holders of the holders of the holders of the
Bank Bank Bank Bank
36 - Yes Yes No No Yes Yes Yes Yes Yes Yes No
Non-compliant transitioned features
37 -
If yes, specify non-compliant features Loss- Loss- NA NA Loss- Loss- Loss- Loss- Loss- Loss- NA
absorption absorption absorption absorption absorption absorption absorption absorption
129
feature feature feature feature feature feature feature feature
Annual Report 2016-17
1. Quantitative Disclosures
( . ) 1. Value of Investments
(Amount in Rs million)
\
Value as per
868.25 868.25 Investments
Balance Sheet
Fair Value
Unquoted 868.25 868.25
2. Quoted NIL NIL
2. Type and Nature of Investments
( . )
Publicly Privately
] ] Investments
Traded Held
Subsidiary, Associate and Joint Ventures NIL 734.21
Other shares of PSU/Corporate, which NIL NIL
, 734.21 were in the books of the Bank under HTM
category as on 02.09.2004 and as per RBI
/ ] guidelines, can be retained as such.
02.09.2004 \ Venture Capital Funds NIL 134.04
]
] ]
.
] 134.04
130
Jeeef<e&ke efjHees& 2016-17
131
Annual Report 2016-17
132
Jeeef<e&ke efjHees& 2016-17
(Amount Rs in crore)
( . )
] Liquidity Coverage Ratio
FY 2016- 2017 FY 2015- 2016
2016- 2017 2015- 2016 Total Total Total Total
Unweighted Weighted Unweighted Weighted
Value Value Value Value
( average) ( average) ( average) (average)
() () High quality Liquid assets
() () 1 Total High Quality 18596.48 14278.33
\\ Liquid Assets (HQLAs)
Cash outflows
1 \\ 18596.48 14278.33 2 Retail deposits and 107266.86 9067.68 96930.79 8243.66
(\) deposits from small
business customers,
of which:
2 ] 107266.86 9067.68 96930.79 8243.66 (i) Stable deposits 33180.06 1659.00 28988.47 1449.43
], ] (ii) Less stable deposits 74086.80 7408.68 67942.33 6794.23
(i) ] 33180.06 1659.00 28988.47 1449.43 3 Unsecure wholesale 21877.24 13388.50 23020.52 11667.56
funding, of which:
(ii) ] 74086.80 7408.68 67942.33 6794.23 (i) Operational deposits ( 167.41 41.85 1413.08 353.27
3 , ] 21877.24 13388.50 23020.52 11667.56 all counterparties)
(ii) Non operational 21709.83 13346.64 21607.44 11314.29
(i) \ ] ( 167.41 41.85 1413.08 353.27 deposits ( all
) counterparties)
(ii) -\ ] ( 21709.83 13346.64 21607.44 11314.29 (iii) Unsecured debt 0.00 0.00 0.00 0.00
) 4 Secured wholesale 236.85 0.00 236.85 0.00
funding
(iii) 0.00 0.00 0.00 0.00 5 Additional 16944.35 2014.84 16610.11 1933.91
4 236.85 0.00 236.85 0.00 requirements, of which:
(i) Outflows related to 0.00 0.00 0.00 0.00
5 , ] 16944.35 2014.84 16610.11 1933.91 derivative exposures
(i) 0.00 0.00 0.00 0.00 and other collateral
requirements
(ii) Outflows related to 0.00 0.00 0.00 0.00
(ii) 0.00 0.00 0.00 0.00 loss of funding on debt
products
(iii) 16944.35 2014.84 16610.11 1933.91 (iii) Credit and liquidity 16944.35 2014.84 16610.11 1933.91
products
6 150.35 150.35 197.58 197.58 6 Other contractual 150.35 150.35 197.58 197.58
7 14634.09 476.07 13992.74 662.14 funding obligations
7 Other contingent 14634.09 476.07 13992.74 662.14
8 25097.44 22704.85 funding obligtations
8 Total Cash Outflows 25097.44 22704.85
Cash inflows
9 ( - 2950.65 0.00 439.99 0.00 9 Secured lending ( e.g. 2950.65 0.00 439.99 0.00
) reverse repos)
10 9473.86 8863.02 4133.04 3309.18 10 Inflows from fully 9473.86 8863.02 4133.04 3309.18
performing exposures
11 523.36 367.21 896.91 510.42 11 Other cash inflows 523.36 367.21 896.91 510.42
12 12947.87 9230.23 5469.94 3819.60 12 Total Cash Inflows 12947.87 9230.23 5469.94 3819.60
Total Adjusted Value Total Adjusted Value
] ]
21 Total HQLA 18596.48 14278.33
21 \ 18596.48 14278.33 22 Total Net Cash 15867.21 18885.25
Outflows
22 15867.21 18885.25
23 Liquidity Coverage 117.20% 75.61%
23 ] (%) 117.20% 75.61% Ratio (%)
Note: Quarterly details are available on Bank's website under Regulatory disclosure link.
.
133
Annual Report 2016-17
31 ceee& 2017 kees meceehle Je<e& kes efueS vekeoer heJeen kee efJeJejCe
Statement of Cash Flow for the Year Ended 31st March 2017
(` npeej ceW)
(` in Thousand)
31.03.2017 kees meceehle Je<e& 31.03.2016 kees meceehle Je<e&
efJeJejCe Particulars Year Ended 31.03.2017 Year Ended 31.03.2016
ke. heefjeeueve ieefleefJeefOeeeW mes vekeoer heJeen
A. Cash Flow From Operating Activities:
Deee Income
Je<e& kes oewjeve Deefiece, efveJesMe Fleeefo mes heehle yeepe
Interest received during the year from advances, Investments etc. 12061,95 ,97 13052,98,57
Deve Deee Other Income 1508,07,46 13570,03,43 1019,28,97 14072,27,54
IeeSb:Jee Je heeJeOeeve Less: Expenditure & Provisions
Je<e& kes oewjeve pecee Je GOeejer hej Yegieleeve efkeee yeepe
Interest Paid during the year on Deposits and Borrowings 8887,27,12 9174,28,93
heefjeeueve Jee Operating Expenses 2855,69,51 2552,80,93
heeJeOeeve SJeb DeekeeqmcekeleeSb Provisions & Contingencies 3199,57,60 14942,54,23 2244,49,20 13971,59,06
Jee kes hej Deee DeefOeke nesves kes keejCe vekeoer ceW efveJeue Je=ef
Net Increase in Cash due to Increase of Income over Expenses -1372,50,80 100,68,48
pees[s:iewj vekeoer ceoW SJeb Deueie efJeeeefjle ceoW
Add : Non Cash Items & Items Considered Separately
heeJeOeeve SJeb DeekeeqmcekeleeSb Provisions & Contingencies 3199,57,60 2244,49,20
Deeue mebheefeeeW nsleg cetueeme Depreciation on Fixed Assets 117,61,78 149,19,72
Deeue mebheefe kes efJeee hej ueeYe/neefve
Profit/Loss on sale of Fixed Assets 13,55 18,07
Deeekej ceebie hej yeepe - -
Interest on Income Tax demand
jepemJe Deejef#eefle efveefOe ceW Je=ef
Addition to revenue reserve 54,21,28 -
134
Jeeef<e&ke efjHees& 2016-17
(` npeej ceW)
(` in Thousand)
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
mLeeve : HegCes Place : Pune
efoveebke : 4 ceF&, 2017 Date : 4th May, 2017
135
Annual Report 2016-17
136
Jeeef<e&ke efjHees& 2016-17
. c. The Cash Flow Statement gives a true and fair view of
the cash flows for the year ended on that date.
\ \ .
7. Emphasis of Matter:
7. ]
(a) Note number 4.13.1 in schedule 18 in respect of
() / classification of restructured advances under CDR/non
\ 18 4.13.1 CDR mechanism.
() . 761.25 () (b) Note number 10.10 in Schedule 18 of Notes to Accounts
to the Financial Statements regarding recognition of
Deferred Tax Assets on account of provisions for Bad and
\ 18 10.10 Doubtful Debts (NPA) amounting to Rs. 761.25 crores.
8. 8. Report on Other Legal and Regulatory Requirements:
1949 The Balance Sheet and the Profit and Loss Account have been
. drawn up in forms A and B respectively of the third Schedule
9. \ 1 5 to the Banking Regulation Act 1949.
( ) , 1970/1980 9. Subject to the limitation of the audit indicated in paragraph 1 to
5 above and as required by Banking Companies (Acquisition
, and Transfer of Undertaking) Act 1970/1980, and also subject
to the limitations of disclosure required therein we report that:
) ] ] a. We have obtained all the information and explanations
] \ , which to the best of our knowledge and belief were
necessary for the purpose of the audit and have found
] .
them to be satisfactory.
) ] , b. The transactions of the bank which have come to our
. notice have been within the powers of the Bank.
) c. The returns received from the offices and branches of the
] . Bank have been found adequate for the purpose of our
audit.
10.
10. We further report that;
1) \ ,
a. The Balance Sheet and Profit and Loss account dealt
. with by this report are in agreement with the books of
2) , 1949 29 account and returns;
, b. The reports on the accounts of the branch offices audited
] by branch auditors of the Bank under section 29 of the
Banking Regulation Act,1949 have been sent to us and
\ .
have been properly dealt with by us in preparing this
report;
3) , c. In our opinion, the Balance Sheet, Profit and Loss
. Account and Cash Flow Statement comply with the
applicable Accounting Standards.
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
mLeeve : HegCes Place : Pune
efoveebke : 4 ceF&, 2017 Date : 4th May, 2017
137
Annual Report 2016-17
Deve oseleeSb SJeb heeJeOeeve Other Liabilities & Provisions 5 4765,29,75 3960,59,42
Deeeqmleeeb ASSETS
vekeoer Deewj Yeejleere efjpeJe& yeQke ceW DeefleMes<e
Cash and Balances with Reserve Bank of India 6 15274,72,19 8382,28,75
yeQkeeW ceW Mes<e, ceebie leLee Deuhe metevee hej eeHe Oeve
Balances with Banks, Money at call & short notice 7 1367,35,95 937,92,14
. . . . . .
A.C. ROUT R. K. GUPTA R.P. MARATHE
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR MANAGING DIRECTOR & CEO
. \ . . . . ].
Dr. ARCHANA R. DHOLAKIA R. THAMODHARAN P. A. SETHI DEENDAYAL AGRAWAL G. SREEKUMAR
Director Director Director Director Director
] . \.
, . . , . . , ..
ATEESH SINGH PRADEEP MISHRA SANJAY RUDRA R. H. PHADNIS
Director Asst.Gen. Manager, FM&A Dy. Gen. Manager, FM&A Gen. Manager, FM&A
]. , () .
Shri Ateesh Singh and Shri G. Sreekumar, (Directors) did not sign since, they were granted leave of absence.
138
Jeeef<e&ke efjHees& 2016-17
31 ceee& 2017 kees meceehle Je<e& kee mecesefkele ueeYe Je neefve uesKee
CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2017
(` npeej ceW)
( ` in thousands)
Devegmeteer 31 ceee& 2017 kees 31 ceee& 2016 kees
Schedule meceeHle Je<e& (eeuet Je<e&) meceeHle Je<e& (iele Je<e&)
Year ended Year ended
31st March 2017 31st March 2016
(Current Year) (Previous Year)
I. Deee INCOME
Dee|pele yeepe Interest earned 13 12061,98,03 13053,00,62
meneesieer mebmLeeDeeW ceW Deee/neefve kee efnmmee Share of earnings/ loss in Associates 15,96,10 17,09,90
Deve Deee Other Income 14 1508,85,20 1020,07,25
pees[ TOTAL 13586,79,33 14090,17,77
II. Jee EXPENDITURE
Jee efkeee ieee yeepe Interest expended 15 8886,32,34 9173,57,07
heefjeeueve Jee Operating Expenses 16 2856,77,91 2553,75,12
heeJeOeeve Deewj DeekeeqmcekeleeSb Provisions & contingencies 3199,78,20 2244,67,09
pees[ TOTAL 14942,88,45 13971,99,28
ueeYe/neefve PROFIT/LOSS
Je<e& kes efueS mecesefkele efveJeue ueeYe Consolidated Net Profit for the year -1356,09,12 118,18,49
pees[s : Deeies ueeee ieee ueeYe Add: Profit brought forward 72,76,43 146,41,60
pees[s : efveJesMe Deejef#eefle mes DeenjCe Add: Drawing from Investment Reserve 8,12,29 12,95,89
pees[ TOTAL -1275,20,41 277,55,98
efJeefveeesie APPROPRIATIONS
meebefJeefOeke Deejef#eefle kees DeblejCe Transfer to Statutory Reserve __ 29,54,62
hetbpeer Deejef#eefle kees DeblejCe Transfer to Capital Reserve 87,25,27 28,83,32
jepemJe Deejef#eefle kees DeblejCe Transfer to Goverment Reserve __ 16,10,69
efJeMes<e Deejef#eefle kees DeblejCe Transfer to Special Reserve __ 130,00,00
efveJesMe Deejef#eefle kees DeblejCe Transfer to Investment Reserve __ __
hemleeefJele ueeYeebMe (F&eqkeJeer) Proposed dividend (Equity) __ __
ueeYeebMe hej kej Tax on Dividend (Subsidary) 41 __
Debleefjce ueeYeebMe Deewj Debleefjce ueeYeebMe hej kej Interim Dividend & Tax on Interim Dividend __ 30,92
Mes<e kees leguevehe$e ceW Deeies ues peeee ieee Balance carried over to Balance Sheet -1362,46,09 72,76,43
pees[ TOTAL -1275,20,41 277,55,98
heefle Mesej Depe&ve (cetue Je kece keer ngF&) (`) Earning per share (Basic & Diluted) (Rupees) -11.61 1.06
Gheeg&e meboe|Yele Devegmetefeeeb ueeYe / neefve KeeleeW kes DeefYeVe Yeeie nQ.
The Schedules referred to above form an integral part of the Profit and Loss Account
nceejer meceefoveebefkele mebueive efjhees& kes Devegmeej As per our report of even date attached.
ke=les heejKe Sb[ kebheveer ..
SHeDeejSve: 001475meer SHeDeejSve: 110540 - 301178 ,
meveoer uesKeekeej meveoer uesKeekeej
for Parakh & Co. : 101678 / 100068
for A.R. Sulakhe & Co.
FRN: 001475C for KOTHARI & Co
FRN: 110540W
Chartered Accountants FRN - 301178E for CMRS & Associates,LLP
Chartered Accountants Chartered Accountants FRN: 101678 W/ W100068
Chartered Accountants
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
mLeeve : HegCes Place : Pune
efoveebke : 4 ceF&, 2017 Date : 4th May, 2017
139
Annual Report 2016-17
140
Jeeef<e&ke efjHees& 2016-17
141
Annual Report 2016-17
142
Jeeef<e&ke efjHees& 2016-17
Devegmeteer - 6 : vekeoer Deewj Yeejleere efjpeJe& yeQke ceW DeefOeMes<e (` npeej ceW)
SCHEDULE - 6 : CASH AND BALANCES WITH RESERVE BANK OF INDIA (` in thousands)
Devegmeteer - 7 : vekeoer Deewj Yeejleere efjpeJe& yeQke ceW DeefOeMes<e (` npeej ceW)
SCHEDULE - 7 : BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE (` in thousands)
143
Annual Report 2016-17
pees[ TOTAL __ __
kegue pees[ (I Je II) GRAND TOTAL (I & II) 38677,00,66 36301,73,32
III Yeejle ceW mekeue efveJesMe Investments in India
i) efveJesMeeW kee mekeue cetue Gross Value of Investments 38928,38,50 36402,77,96
ii) cetue-me nsleg heeJeOeeveeW kee pees[
Aggregate of Provisions for Depreciation 251,37,84 101,04,64
iii) efveJeue efveJesMe (i-ii) Net Investment (i-ii) 38677,00,66 36301,73,32
144
Jeeef<e&ke efjHees& 2016-17
145
Annual Report 2016-17
pees[ TOTAL (I, II, III, IV, V & VI) 6990,65,70 6149,68,84
* Jeeeoe efJeefvecee mebefJeoeDeeW kes mebyebOe ceW Deekeeqmceke oseleeDeeW ceW efyeeer Je Kejero oesveeW hekeej keer mebefJeoeSb Meeefceue nQ.
* Contingent liabilities in respect of forward exchange contracts include both sale and purchase contracts
146
Jeeef<e&ke efjHees& 2016-17
31 ceee& 2017 kees meceeHle Je<e& 31 ceee& 2016 kees meceeHle Je<e&
(eeuet Je<e&) (iele Je<e&)
Year ended 31st March 2017 Year ended 31st March 2016
(Current Year) (Previous Year)
I. DeefieceeW / efyeueeW hej yeepe / yee 8469,95,77 9934,82,60
Interest/Discount on Advances/Bills
II. efveJesMeeW hej yeepe
Interest on Investments 2892,04,37 2787,67,86
IeeSb - efveJesMeeW kee heefjMeesOeve 62,54,95 2829,49,42 52,45,85 2735,22,01
Less - Amortisation of Investments
III. Yeejleere efjpeJe& yeQke kes heeme Mes<e Deewj Deve Deblej yeQke efveefOeeeW hej yeepe
Interest on balances with Reserve Bank of India & other inter 401,91,29 52,02,07
bank funds
IV Deve Others 360,61,55 330,93,94
31 ceee& 2017 kees meceeHle Je<e& 31 ceee& 2016 kees meceeHle Je<e&
(eeuet Je<e&) (iele Je<e&)
Period ended 31st March 2017 Year ended 31st March 2016
(Current Year) (Previous Year)
I. keceerMeve efJeefvecee Deewj oueeueer
Commission, exchange, and brokerage 733,93,07 675,29,79
II. efveJesMeeW kes efJeee hej ueeYe
Profit on sale of investments 594,55,15 170 ,69 ,49
IeeSb : efveJesMeeW kes efJeee hej neefve
Less : Loss on sale of Investments 13,85,81 580,69,34 13,75,88 156,93,61
III. efveJesMeeW kes hegvecet&ueve hej ueeYe __ __
Profit on revaluation of Investments
IeeSb : efveJesMeeW kes hegvecet&ueve hej neefve __
Less: Loss on revaluation of Investments __ __ __
IV. Yetefce, YeJeveeW Deewj Deve DeeeqmleeeW kes efJeee hej ueeYe
Profit on sale of land, buildings and other assets 1,63,87 51,57
IeeSb : Yetefce, YeJeveeW Deewj Deve DeeeqmleeeW kes efJeee hej neefve
Less : Loss on sale of land,buildings and other assets 1,77,42 - 13,55 70,05 - 18,48
V. efJeefvecee mebJeJenejeW hej ueeYe
Profit on Exchange Transactions 101,90,75 77,82,76
pees[ TOTAL (I, II, III, IV, V, VI & VII) 1508,85,20 1020,07,25
147
Annual Report 2016-17
31 ceee& 2017 kees meceeHle Je<e& 31 ceee& 2016 kees meceeHle Je<e&
(eeuet Je<e&) (iele Je<e&)
Year ended 31st March 2017 Year ended 31st March 2016
(Current Year) (Previous Year)
I. peceejeefMeeeW hej yeepe Interest on deposits 8074,64,38 8421,17,17
II. Yeejleere efjpeJe& yeQke / Deblej yeQke GOeeefjeeW hej yeepe
Interest on Reserve Bank of India / inter-bank borrowings 11,61,45 54,88,01
III. Deve Others 800,06,51 697,51,89
31 ceee& 2017 kees meceeHle Je<e& 31 ceee& 2016 kees meceeHle Je<e&
(eeuet Je<e&) (iele Je<e&)
Year ended 31st March 2017 Year ended 31st March 2016
(Current Year) (Previous Year)
I. kece&eeefjeeW kees Yegieleeve Deewj Gvekes efueS heeJeOeeve
Payments to and provisions for employees 1807,93,73 1541,71,46
II. efkejeee, kej Deewj efyepeueer
Rent,taxes and lighting 197,55,95 196,20,17
III. cegCe Deewj uesKeve meeceieer
Printing and stationery 21,83,09 21,59,07
IV. efJe%eeheve Deewj heeej
Advertisement and publicity 16,03,17 18,06,60
V. yeQke keer mebheefe hej cetue-me (cetue-me Ieekej hegvecet&ueve Deejef#eefle
kees Debleefjle) 117,89,66 149,24,63
Depreciation on Bank's property (Net of depreciation transferred
to Revaluation Reserve)
VI. efveosMekeeW keer Heerme, Yees Deewj Jee
Directors' fees, allowances and expenses 91,78 69,28
VII. uesKee hejer#ekeeW keer Heerme Deewj Jee (FmeceW MeeKee uesKee hejer#ekeeW keer Heerme Deewj
16,83,85 18,14,13
Jee Meeefceue nQ)
Auditors' fees and expenses (incl. branch auditors' fees and
expenses)
VIII efJeefOe heYeej
Law Charges 16,64,91 14,05,25
IX [eke, leej Deewj sueerHeesve Deeefo
Postage, Telegrams, Telephones, etc. 40,93,06 36,14,16
X cejccele Deewj Devegj#eCe
Repairs and maintenance 88,90,54 76,36,46
XI yeercee
Insurance 131,70,87 119,88,06
XII Deve Jee
Other expenditure 399,57,30 361,65,86
148
Jeeef<e&ke efjHees& 2016-17
SCHEDULE 17 SIGNIFICANT ACCOUNTING POLICIES
\ 17-
(ANNEXED TO AND FORMING PART OF THE CONSOLIDATED
(31 \, 2017 ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2017.)
) 1. Accounting Conventions:
1. 1.1 The financial statements are prepared under the historical
cost conventions except as otherwise stated and conform
1.1 ] to the Generally Accepted Accounting Principles (GAAP)
which include statutory provisions, practices prevailing
(]) ] within the Banking Industry in India, the regulatory/
\ , / { Reserve Bank of India (RBI) guidelines, applicable
Accounting Standards/ Guidance Notes issued by the
, () Institute of Chartered Accountants of India (ICAI).
] / .
1.2 The preparation of financial statements requires the
1.2 management to make estimates and assumptions
considered in the reported amount of assets and liabilities
(including contingent liabilities) as of the date of financial
( ) statements and reported income and expenses for the
\ ]. \ period under report. Management is of the view that the
estimates used in the preparation of financial statements
. are prudent and reasonable.
1.3 The Consolidated Financial Statements have been
1.3 ] 21 -
prepared in accordance with Accounting Standard 21
23- Consolidated Financial Statements and Accounting
Standard 23 Accounting for Investments in Associates
. in Consolidated Financial Statements, issued by the
Institute of Chartered Accountants of India.
1.4 ] \ 7.1 , ]
1.4 Revenue and costs are accounted for on accrual basis
\ . except as stated in para 7.1 below.
1.5 ] , 1.5 The accounting policies with regard to Revenue
{ - Recognition, Investments and Advances in relation to
. Banking Business are in conformity with the prudential
norms issued by the Reserve Bank of India from time to
1.6 time.
31 \, 2017 . 1.6 The financial statements of the Subsidiary and Associate
2. considered in preparation of Consolidated Financial
Statement are drawn up to 31st March 2017.
) , 2. Principles of Consolidation:
.
A) Parent Entity: The Financial Statements are consolidated for
) 21 - " " Bank of Maharashtra, the parent entity and its subsidiary along
. with associated enterprise as follows.
B) Related Entity:
/ The following subsidiary has been consolidated as per
Accounting Standard 21 Consolidated Financial Statement.
..
100 % Country / Ownership
"" Name of the company Relationship
Residence Interest
The Maharashtra
Wholly
23 - " Executor & Trustee
India Owned 100%
Co. Pvt. Ltd. (hereafter
" Subsidiary
referred as METCO)
. The following Associate Company has been accounted for under
the Equity Method as per Accounting Standard 23 Accounting
/ for Investments in Associates in Consolidated Financial
Statements
( 35 % Country / Ownership
Name of the company Relationship
]) Residence Interest
) Maharashtra Gramin
Associate
Bank (sponsored by India 35%
Enterprise
Bank of Maharashtra)
/ , , , C) Basis of Preparation of Consolidated Financial Statement &
] -- ] its impact
. The Consolidated financial statements of the Bank & its
, subsidiary have been combined on a line-by-line basis by adding
. ] ] together the like items of assets, liabilities, income & expenses,
after fully eliminating intra-group balances / transactions. The
] .
149
Annual Report 2016-17
. \ c. Shares
d. Debentures and bonds
.
e. Subsidiaries and Joint Ventures
\. (] , \ )
f. Others (Commercial Papers, Mutual Fund Units etc).
iii iii Bank decides the category of each investment at the time of
. `` '' `` '' acquisition and classifies the same accordingly. Shifting of
, securities from one category to another, other than shifting /
/ /] , ] transfer from HFT to AFS category, is done once in a year with
150
Jeeef<e&ke efjHees& 2016-17
] . the approval of Board of Directors, at the least of acquisition
cost / book value / market value on the date of shifting. The
depreciation, if any, on such shifting is provided for and the book
] ] ] . value of the security is adjusted accordingly. The transfer of
] securities from one category to another is made as per permission
] . `` '' `` from or guidelines of RBI. Transfer / shifting of investments
'' , ] from HFT to AFS category will be executed under exceptional
circumstances, like not being able to sell the securities within
90
90 days due to tight liquidity conditions, or extreme volatility, or
-\[ { \ market becoming unidirectional.
].
iv REPO / Reverse REPO
iv. / The Bank has adopted the Uniform Accounting Procedure
prescribed by the RBI for accounting of market Repo and
] . Reverse Repo transactions. Repo and Reverse Repo
transactions are treated as Collateralized Borrowing / Lending
^ Operations with an agreement to repurchase on the agreed
/ \ ] . \ terms. Securities sold under Repo are continued to be shown
] ] ] under investment and Securities purchased under Reverse
] . / Repo are not included in investment. Outstanding Repo / Term
Repo is disclosed as borrowing and outstanding Reverse Repo
is disclosed as lending. Costs and revenues are accounted for
] . ] ] /, ] as interest expenditure / income, as the case may be.
, ] .
v Valuation of investments
v. a. Held to Maturity:
. i Securities under the category 'Held to Maturity' are valued
i at average cost. Wherever the cost of security is higher
. ] , , than the face value, the premium is amortized over the
remaining period of maturity on straight line basis. In case
. of investments, where the cost price is less than the face
] , value, the difference is ignored .
. ii In case of investments in subsidiaries and joint ventures
ii permanent diminution in value is recognized and provided
. for; investment in RRB is valued at carrying cost.
. iii On sale of investments in this category (a) the net profit is
initially taken to profit and loss account and thereafter such
iii () profit (net of applicable taxes and proportionate statutory
( reserve) is appropriated to the Capital Reserve account
) ] and (b) the net loss is charged to Profit & Loss Account.
] () b. Available for Sale:
. The individual securities under this category are marked to
. market on a quarterly basis. Central/State Government securities
are valued at market rates declared by Fixed Income Money
{ Market and Derivatives Association of India [FIMMDA]. Other
\ (--) . /] approved securities, Debentures and Bonds are valued as per
`` ] '' () the yield curve, average credit spread rating and methodology
] . , \ suggested by FIMMDA. Quoted Shares are valued at market
rates. Unquoted shares are valued at book value ascertained
, ^ from the latest available Balance Sheet i.e Balance sheet of
. () ] immediate preceding year and in case the latest Balance Sheet
. () , is not available, the same is valued at Re.1/- per company /
Scrip.
1/- Investments in discounted instruments, viz. Treasury bills,
/ . Certificate of deposits and commercial papers, Zero coupon
Bonds are valued at carrying cost. Mutual Fund Instruments are
, ] ] , ] valued at market rate or repurchase price or net asset value in
] , { , that order depending on their availability. Investments in Security
. \ ] Receipts /PTCs issued by Asset Reconstruction Companies
(ARCs) in respect of financial assets sold to ARCs are carried
at lower of redemption value and net book value (i.e. book value
. \
less provision held), of the financial assets.
() ] /
Based on the above valuation under each of six-sub
\ ( classifications under `Available for Sale':
) ] ,
] .
151
Annual Report 2016-17
152
Jeeef<e&ke efjHees& 2016-17
Rate of
(%) S.N. Category of Asset
Depreciation (%)
1 5.00 1 Building & Premises 5.00
2 18.10 2
General items including
18.10
Safe
3 13.91
3 Electrical Equipments 13.91
4 13.91 4 Office Machinery 13.91
5 25.89 5 Motor Vehicles 25.89
6 ] 13.91 6 Safe Deposit Vault 13.91
7 20.00 7 Bicycle 20.00
153
Annual Report 2016-17
154
Jeeef<e&ke efjHees& 2016-17
] , 28- Impairment of Assets issued by Institute of Chartered
Accountants of India (ICAI) and charged to profit and loss
.
account.
10 , 10. Provisions, Contingent Liabilities and Contingent Assets:
] 29 - ``, As per the Accounting Standard 29-Provisions, Contingent
'' Liabilities and Contingent Assets issued by Institute of Chartered
. Accountants of India (ICAI), the Bank recognizes provisions only
] ] when it has a present obligation as a result of a past event and
it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and when a
. reliable estimate of the amount of the obligation can be made.
, Contingent assets are not recognized in the financial statements
] . since this may result in the recognition of the income that may
never be realized.
11. ,
11. Net Profit, Provisions and Contingencies:
, ]
The Net Profit disclosed is after making the Provisions and
], , Contingencies which include adjustment to the value of
( ) / investments, write off of bad debts, provision for taxation
. (including deferred taxation), and provision for advances
including cases identified as fraud and contingencies / others.
12.
12. Income tax:
\ ,
The provision for tax for the year comprises liability towards
. ()
Current Income Tax, Wealth Tax and Deferred Tax. The deferred
] 22 - - tax asset/ liability is recognized, subject to the consideration of
\ \ prudence, taking into account the timing differences between
\ . the taxable income and accounting income, in terms of the
] Accounting Standard 22 issued by Institute of Chartered
Accountants of India (ICAI). The effect of change in tax rates on
.
deferred tax assets and liabilities is recognized in the profit and
loss account in the period of applicability of the change.
] Deferred tax assets and liabilities are measured using the tax
. rates and tax laws that have been enacted or substantively
enacted by the balance sheet date.
] \
] . Deferred tax assets are recognized only to the extent there is
reasonable certainly that the assets can be realized in future.
In cases of unabsorbed depreciation or carried forward loss
] under taxation laws, all deferred tax assets are recognized only
. if there is virtual certainty of realization of such assets supported
] by convincing evidence. Deferred tax assets are reviewed at
\ ] ] ] each balance sheet date and appropriately adjusted to reflect
the amount that is reasonably/ virtually certain to be realized.
/ \ ] .
Interest income on refund of Income Tax is accounted for, in the
] , ] year the order is passed by the concerned authority.
. The demand raised by the Income Tax authorities including the
, ] , interest thereon is provided for when the demand is upheld in the
] ( ) \ second appeal (i.e. by ITAT)
. The tax expenses shown in the Consolidated Financial
Statements is the aggregate of the amounts of tax expenses
- appearing in the separate financial statements of the parent &
] . subsidiary.
13. ] 13. Earnings Per Share
] Basic and Diluted earnings per equity share are reported in
() ] ( - 20) ] accordance with the Accounting Standard (AS-20) Earnings
Per Share issued by ICAI. Basic Earnings per share is arrived
. ]
by dividing net profit by the weighted average number of equity
. shares outstanding for the period. The diluted earnings per
equity share are computed using the weighted average number
of equity shares and dilutive potential equity shares outstanding
] . during the period.
155
Annual Report 2016-17
156
Jeeef<e&ke efjHees& 2016-17
157
Annual Report 2016-17
3
Net liability to be
recognized 24.48 1.76 15.41 1.96 39.89 3.72 270.23 270.23
4
Other amount
recognized in the
Balance Sheet 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5
Net liability recognized
in the Balance Sheet 24.48 1.76 15.41 1.96 39.89 3.72 270.23 270.23
IV. Amount recognized in the Profit & Loss Account:
(. ) (Rs. in Crores)
] ]
.. PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
SN Particulars
31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
1 \
Current Service Cost 483.13 413.77 40.24 29.32 29.13 36.39
2 ]
Interest Cost 290.55 274.79 44.88 34.57 18.21 19.91
3 ]
Expected Return on Plan Assets (332.35) (321.70) (54.95) (42.80) 0.00 0.00
4 ()/
Actuarial (Gains)/Losses for the
year 176.78 122.42 25.27 26.86 21.80 (24.76)
5
Past Service Cost 0.00 0.00 0.00 0.00 0.00 0.00
6
Expense to be recognized 618.12 489.28 55.44 47.96 69.14 31.54
7
/()
Additional provision made / (write
back) during the year 0.00 0.00 0.00 0.00 0.00 0.00
8
Net expense recognized in
Profit & Loss Account and
included in Staff Cost 618.12 489.28 55.44 47.96 69.14 31.54
V. Reconciliation in the Net Liability recognized in the Balance Sheet
(. ) (Rs. in Crores)
.. ] ]
Sr.
PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
Particulars
No 31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
1
Opening Net Liability 1.76 53.24 1.96 6.27 270.23 275.06
2
Expense recognized 618.12 489.28 55.44 47.96 69.14 31.54
3 /
Contributions/Benefits paid (595.40) (540.76) (42.00) (52.27) (37.75) (36.37)
4
Closing Net Liability 24.48 1.76 15.41 1.96 301.62 270.23
158
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1 ]
Expected return on plan assets 332.35 321.70 54.95 42.80
2 ] ()
Actuarial gain (loss) on plan assets 9.97 9.73 (18.25) (3.79)
3 ]
Actual return on plan assets 342.32 331.43 36.70 39.01
VII. ( ) Principal Actuarial Assumptions (expressed as weighted averages)
] ]
.. PENSION PLANS GRATUITY PLANS LEAVE ENCASHMENT
Sr No Particulars
31.03.2017 31.03.2016 31.03.2017 31.03.2016 31.03.2017 31.03.2016
159
Annual Report 2016-17
] Revenue 4079.07 3106.57 5147.54 6676.80 3992.21 3899.26 367.98 407.55 13586.80 14090.18
Result 1317.49 323.79 (2617.02) (293.36) (897.12) 338.50 70.20 66.46 (2126.44) 435.39
\
Unallocated expenses 0.00 0.00
\
Operating profit (2126.44) 435.39
Taxes including deferred
taxes (770.35) 317.20
/
Extraordinary profit/ loss Nil Nil Nil Nil Nil Nil Nil Nil - -
Net profit (1356.09) 118.19
]
Other Information:
Segment assets 48024.30 39000.66 58617.74 72228.59 39219.77 37924.10 11519.17 10930.76 157380.98 160084.10
Unallocated assets 2030.08 944.71
Total assets 159411.06 161028.81
Segment liabilities 47378.24 38336.91 55545.34 67345.86 36979.63 35167.74 12038.92 11318.19 151942.14 152168.02
Unallocated liabilities 0.00 0.00
]
Capital & Other Reserves 7468.92 8860.12
Total liabilities 159411.06 161028.81
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162
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Annual Report 2016-17
31 ceee& 2017 kees meceehle Je<e& kes efueS mecesefkele vekeoer heJeen kee efJeJejCe
Statement of Consolidated Cash Flow for the Year Ended 31st March 2017
(` npeej ceW)
(` in Thousand)
31.03.2017 kees meceehle Je<e& 31.03.2016 kees meceehle Je<e&
efJeJejCe Particulars
Year Ended 31-03-2017 Year Ended 31-03-2016
164
Jeeef<e&ke efjHees& 2016-17
(` npeej ceW)
(` in Thousand)
31.03.2017 kees meceehle Je<e& 31.03.2016 kees meceehle Je<e&
yeesjs Particulars Year Ended 31-03-2017 Year Ended 31-03-2016
] . \.
, . . , . . , ..
PRADEEP MISHRA SANJAY RUDRA R. H. PHADNIS
Asst.Gen. Manager, FM&A Dy. Gen. Manager, FM&A Gen. Manager, FM&A
ke=les heejKe Sb[ kebheveer ..
SHeDeejSve: 001475meer SHeDeejSve: 110540 - 301178 ,
meveoer uesKeekeej meveoer uesKeekeej
for Parakh & Co. : 101678 / 100068
for A.R. Sulakhe & Co.
FRN: 001475C for KOTHARI & Co
FRN: 110540W
Chartered Accountants FRN - 301178E for CMRS & Associates,LLP
Chartered Accountants Chartered Accountants FRN: 101678 W/ W100068
Chartered Accountants
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M. Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
mLeeve : HegCes Place : Pune
efoveebke : 4 ceF&, 2017 Date : 4th May, 2017
165
Annual Report 2016-17
, To,
The Board of Directors of Bank of Maharashtra,
166
Jeeef<e&ke efjHees& 2016-17
.
.: 410433 .: 33451 .: 64601 .: 212175
CA Indra Pal Singh CA Anand Sulakhe CA Manaswy Kothari CA Maheshwar M. Marathe
Parther Parther Parther Parther
Membership No. 410433 Membership No. 33451 Membership No. 64601 Membership No. 212175
mLeeve : HegCes Place : Pune
efoveebke : 4 ceF&, 2017 Date : 4th May, 2017
167
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168
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170
Jeeef<e&ke efjHees& 2016-17
. 224 ] 224 a) The bank received 224 complaints from its shareholders
of which 224 complaints have been resolved satisfactorily.
] The complaints were of the nature of non receipt of
dividend mainly.
171
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172
Jeeef<e&ke efjHees& 2016-17
: Bank has placed the policy on its website. A copy of the same is
also kept in the branches for the public information.
] \ Complaint Redressal System:
The Bank has well placed customer complaint redressal
: mechanism which ensures fast redressal of the complaints. The
] bank has appointed CCSO (internal ombudsman at its HO) to
further boost the customer service
(
) 2. How many stakeholder complaints have been received in
the past financial year and what percent was satisfactorily
2. resolved by the management?
] ?
The total number of complaints received from the customers
2912 during the year is 2912.
6: , Principle 6: Business should respect, protect, and make
\ efforts to restore the environment
1. 6 / 1. Does the policy related to Principle 6 cover only the
/ / / ]/ company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others
?
The Policy covers Bank of Maharashtra only.
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Annual Report 2016-17
Bank works in close coordination with the regulators and policy makers
for improvement of financial services.
174
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Notes
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Notes
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Notes
180