Mar 31, 2019
The 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, 2019.
1. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY:
During the year 2018-19, the Bank has achieved various remarkable achievements in the field of Official Language implementation:
1. Bank was awarded âRajbhasha Kirti Puraskarâ for better implementation of Rajbhasha Hindi, which is the highest award for Rajbhasha. Shri A. C. Raut, Executive Director, Bank of Maharashtra received this prestigious award at the hands of Honâble Vice President of India, Shri M. Venkaiah Naidu in a grand function arranged at Vigyan Bhawan, New Delhi on 14th September, 2018.
2. Bank was awarded prestigious Skoch Order-of-Merit Award on 22 December, 2018 at New Delhi for Better Implementation of Rajbhasha. In Banking Industry, bank is the first to receive this Award for Hindi Implementation.
3. The Town Official Language Implementation Committee, Mumbai has secured Third Prize from the Rajbhasha Vibhag, Ministry of Home Affairs, and Government of India for better implementation of Hindi. Our Bank is the convenor Bank for the committee.
4. Bank was awarded âVishesh Puraskarâ by the Mumbai based prestigious Institution âAashirvadâ for better use of Hindi during the year.
5. Various Town Official Language Implementation Committees convened by other Banks have awarded Kolkata, Raipur, Jaipur and Amaravati Zones for excellent implementation of Official Language.
6. Hindi day function was arranged at Head Office, Pune on 09th October, 2018. Shri A. C. Raut, Executive Director of the Bank presided over the function. Shri Raza Murad, renowned Hindi actor and social worker was the Chief Guest. Shri R. P. Marathe, MD & CEO, Shri R.K. Gupta, Executive Director & Shri Rajkiran Bhoir, General Manager were also present in the function. Winners of the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.
7. An All India Rajbhasha Seminar was organized in Pune for all the Hindi Officers of the Bank. Shri R. P. Marathe, Managing Director & CEO of the Bank inaugurated the seminar.
8. Monthly Rajbhasha E-Magazine âRajbhasha E-Pragatiâ is being regularly published every month. As a new initiative Rajbhasha E-Pragati in Brail script is also published for the benefit of differently abled employees of the Bank.
9. Bank of Maharashtra is the convenor Bank for Town Official Language Implementation Committee (TOLIC) in Mumbai, Pune, Solapur, Latur & Jalgaon. Meetings of these committees were held regularly during the year and various activities of the committees were organized throughout the year as per the schedule.
10. Committee of Parliament on Official Language visited our Delhi Zonal Office, Indore Zonal Office, Mumbai Zonal Office & Rajkot branch, (Ahmedabad Zone) during the year and reviewed Official Language Implementation work of the Bank. The honorable members of the Committee expressed their satisfaction regarding progressive use of Hindi and the implementation of new initiatives by the Bank.
2. SECURITY:
The Bank has put in place a comprehensive Security Policy covering the entire Security arrangements in the Bank. The policy covers the following:-
1. Protect the bankâs assets such as Cash, Gold, Documents and Valuables at branches, Administrative offices, Currency chests, Data Centre, other critical centres and Security measures for Cash and Valuables.
2. Create a secure, safe and conducive environment for Staff, visitors and customers to conduct smooth and normal banking business.
3. Measures to counter manmade disasters and natural calamities.
During the FY 2018-19, proactive steps have been taken on the physical security requirements in the Bank after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of bank robberies, breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any eventuality.
3. SECRETARIAL AUDIT:
Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019, Bank had appointed M/s. Apte Joshi & Associates, Practicing Company Secretaries, Pune as a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year 2018-19. The Secretarial Audit Report is annexed to this Report.
There is no Secretarial audit qualification for the year under review.
4. DIRECTORSâ RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts for the year ended 31.03.2019:
0 The applicable accounting standards of the Institute of Chartered Accountants of India, have been followed along with proper explanation relating to material departures, if any;
0 The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, are consistently applied and proper disclosures are made for changes, if any; 0 Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and the profit of the Bank for the year.
0 Proper and sufficient care was taken for maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks, in India; and
0 The accounts have been prepared on a going concern basis.
5. CHANGES IN THE BOARD OF DIRECTORS:
During the year 2018-19, the following changes took place in the Board of Directors:
0 Shri R. Thamodharan was reappointed as Shareholder Director of Bank w.e.f 30.06.2018.
0 Shri A.S. Rajeev took charge as Managing Director & CEO of the Bank w.e.f 02.12.2018 in place of Shri R.P. Marathe, who completed his term as MD & CEO of Bank on 30.11.2018.
0 Shri Hemant Tamta was appointed as Executive Director of the Bank by the Central Government w.e.f 31.12.2018 in place of Shri R.K. Gupta, who completed his term of Executive Director of Bank on 30.12.2018.
0 Dr. Archana Dholakia was reappointed by Central Government as Director of Bank w.e.f 01.03.2019. She completed her earlier term as Director of Bank on 27.01.2019.
6. BUSINESS RESPONSIBILITY REPORT:
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2018-19 of the Bank has been hosted on the Bankâs website i.e www.bankofmaharashtra.in. Any member interested in obtaining a physical copy of same may write to the Company Secretary of the Bank.
7. ACKNOWLEDGEMENT:
The Board of Directors wishes to express sincere gratitude to Government of India, Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Indian Banksâ Association, Stock Exchanges and Depositories for their valuable advice and support; to the customers and shareholders for their patronage; to the correspondents and associates for their co-operation and to all the members of staff of âMahabank Familyâ for their unstinted commitment and contribution to the overall development of the Bank.
For and on behalf of the Board of Directors
Place : Pune (A.S. RAJEEV)
Date : 29th April, 2019 Managing Director and CEO
Mar 31, 2018
The 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, 2018.
1. Performance Highlights 2017-18
Your Bank was placed under Prompt Corrective Action (PCA) by RBI in June 2017, in view of its high net NPA. Bank therefor had prepared or Monitorable Action Plan for FY 17-18 to improve its position.
1. Total Business of your Bank stood at Rs.233626 crore as on 31.03.2018 as compared to Rs.240590 crore last year.
2. Total deposit stood at Rs.138981 crore as compared to Rs.139053 crore last year.
3. Average Deposits stood at Rs.134294 crore as on 31.03.2018 as compared to Rs.133392 crore last year, registering a growth of 0.68% over last year.
4. CASA deposit stood at Rs.66345 crore against last year figure of Rs.62419 crore (growth of 6.29%). Total CASA percentage stood at 47.74%.
5. Gross advances of the Bank stood at Rs.94645 crore as on 31.03.2018 in comparison to Rs.101537 crore as on 31.03.2017 as a result of Bankâs policy to focus more on retail advances instead of dependence on big corporate advances.
6. Operating Profit of your Bank reached Rs.2191.42 crore as on 31.03.2018 as compared to Rs.1827.07 crore last year.
7. Business per branch is Rs.126.56 Crore as on 31.03.2018.
8. Business per employee is Rs.18.07 crore as on 31.03.2018.
1.1 Sectoral Deployment of Credit
Particulars |
O/s as on 31.03.2018 Rs. crore |
Percentage to total O/s |
O/s as on 31.03.2017 Rs. crore |
Percentage to total O/s |
Industry |
44671.77 |
47.20% |
44811.65 |
44.13% |
Of which |
||||
i. Infrastructure |
8927.06 |
9.43% |
9931.29 |
9.78% |
ii. Chemicals, Dyes, Paints etc |
1930.20 |
2.04% |
3128.00 |
3.08% |
iii. Petroleum |
341.74 |
0.36% |
1018.97 |
1.00% |
iv. Iron and Steel |
4699.00 |
4.96% |
4975.65 |
4.90% |
v. NBFCs and Trading |
14182.77 |
14.99% |
13784.69 |
13.58% |
vi. Engineering |
3246.19 |
3.43% |
3537.38 |
3.48% |
vii. Construction |
5.04 |
0.01% |
119.84 |
0.12% |
viii. Other Industries |
11339.77 |
11.98% |
8315.83 |
8.19% |
Agriculture |
15066.63 |
15.92% |
15491.45 |
15.26% |
MSME |
16283.00 |
17.20% |
20419.50 |
20.11% |
Housing |
13572.69 |
14.34% |
13595.25 |
13.39% |
Education |
995.25 |
1.05% |
891.05 |
0.88% |
Exports |
1209.66 |
1.05% |
1212.71 |
1.19% |
Commercial Real estate |
3189.00 |
3.37% |
5115.21 |
5.04% |
Gross Advances |
94645.00 |
146.97% |
101536.82 |
144.13% |
1.2 Quality and NPA Management
The Bank has set up âAsset Recovery Cells (ARC)ââ at all zonal offices to ensure focused efforts for upgradation and NPA recovery. Twelve Asset Recovery Branches (ARBs) have also been set up across the Bankâs Zones for large NPA a/cs more particularly where legal actions are in progress so as to make focused follow up.
The Bank has also set up separate Cells at its Head Office for identification of Wilful Defaulters, increasing recovery in Written Off accounts, gearing up the actions under DRT / SARFAESI Acts.
Bank has been implementing Suo Motu non-discriminatory and non-discretionary One Time Settlement (OTS) Schemes. During 2017-18, the Bank introduced following such OTS schemes:
1) âGhar Ghar Dastak Yojanaâ (GGDY) was introduced for Small NPA borrowers up to Rs.10 lakhs.
2) âMahaMukti - 2017-18 (A)â and âMahaMukti - 201718 (B)â: These schemes were introduced for NPAs having ledger balance above Rs.10 lakhs up to Rs.1 crore and ledger balance above Rs.1 crore up to Rs.25 crore respectively.
3) âMahabank Karjmukti Yojana: an OTS scheme for recovery in Regular Written Off (RWO) a/cs up to Rs 25 lakhs introduced in previous year was continued during 2017-18.
4) CSMSSY-2017: The Government of Maharashtra announced a loan waiver scheme, named as "Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017â (CSMSSY-2017) for farmers in the State of Maharashtra. The Bank introduced a scheme for one time settlement of Specified NPA accounts under CSMSSY - 2017 as proposed by Government of Maharashtra.
Resolution Agents are appointed on selective basis in case of NPA a/cs with dues of Rs.1.00 crore to Rs.10.00 crore; so as to have an early resolution. For increasing recovery in smaller NPA accounts (up to Rs.25 lakhs) the services of Recovery Agents are engaged.
Bank has also made intensive follow up with the defaulting borrowers through visits, letters, notices, Recovery Camps, Lok Adalats, actions under SARFAESI / DRT Act. The Bank has also initiated action under the provisions of the Insolvency & Bankruptcy Code 2016 against various large NPA borrowers.
In accordance with RBI letter DBR No. BP 8756/21.04.048/201718 dated April 02, 2018, the provisioning requirements in respect of NCLT accounts is reduced from 50% of secured portion to 40% of secured portion as of March 31, 2018. The Bank has availed the option of dispensation available and made provision accordingly. The remaining provision of Rs.389.83 crore shall be made in the quarter ending 30.06.2018 in line with RBI Directions.
Position of Non-Performing Assets is as under;
(Rs. in crore)
Particulars |
Amt. as on 31.03.18 |
Amt. as on 31.03.17 |
Percentage ( /-) |
Gross NPA |
18433 |
17189 |
7.24% |
% to Gross advances |
19.48% |
16.93% |
XXX |
Net NPA |
9641 |
11230 |
(14.14)% |
% to Net advances |
11.24% |
11.76% |
XXX |
Cash Recovery |
1960.51 |
876.42 |
123.70% |
1.3 Foreign Exchange Business
(Rs. in crore)
Particulars |
2017-18 |
2016-17 |
Percentage ( /-) |
Total FEX Business Turnover |
589806 |
598503 |
-1.45% |
Merchant Business Turnover |
30687.93 |
36851.97 |
-16.72% |
Profit in FEX Business |
110.16 |
101.91 |
8.10% |
Bank has 35 âBâ Category branches across the country catering to the International business needs of the customers of the Bank apart from TIBB at Mumbai as âAâ category branch.
1.4 Investment
The breakup of Investments into SLR & Non-SLR investments is given below:
- The Gross Investments as on 31.03.2018 stood at Rs 44162.86 crore, of which Rs.34469.75 crore are SLR securities and Rs.9693.11 crore are Non-SLR Securities. The excess SLR securities as on 31.03.2018 stood at Rs 7085.16 crore.
- The net investments (net of provisions) stood at Rs.43622.80 crore as on 31.03.2018 as compared to Rs.38590.18 crore as on 31.03.2017. Investments under Held to Maturity (HTM) category consist of 69.82%, while Available for Sale (AFS) comprised of 30.17% of total investment portfolio as of 31.03.2018. The net interest income from investment activity increased to Rs.2962.41 crore from Rs.2829.47 crore during the last year (growth of 4.70%).
- The Non-Performing Investments stood at Rs.738.10 crore as on 31.03.2018.
1.5 Merchant Banking:
The Bank handled 75 issues (previous year 70 issues) of Commercial paper amounting to Rs.36445 crore (previous year Rs.30170 crore) for its clients as an Issuing and Paying Agent (IPA) during the year.
1.6 Borrowings:
The borrowing of the Bank as on 31st March 2018 stood at Rs.4063.71 crore including re-finance as under;
Sr. No. |
Particular |
Amount as at 31.03.2018 |
Amount as at 31.03.2017 |
Percentage ( /-) |
1. |
Total Borrowing |
4063.71 |
8136.65 |
(50.06) |
2. |
Borrowing under CBLO |
0.00 |
0.00 |
|
3. |
Refinance from: |
|||
3.1 |
NABARD |
280.00 |
420.00 |
(33.33) |
3.2 |
EXIM BANK |
67.57 |
324.25 |
(79.16) |
3.3 |
RBI |
0.00 |
0.00 |
0.00 |
3.4 |
NHB |
185.26 |
277.89 |
(33.33) |
3.5 |
MUDRA |
182.53 |
370.81 |
(50.78) |
3.6 |
SIDBI |
0.00 |
1500.00 |
(100.00) |
4. |
Borrowings in the form of Bonds & debentures capital instruments |
3300.00 |
5225.00 |
(36.84) |
5. |
Borrowings outside India |
48.31 |
18.65 |
159.00 |
6. |
Others |
0.05 |
0.05 |
0.00 |
During the FY 2017-18, Bank has redeemed Basel II /Basel III Compliant Bonds for an amount of Rs.1925.00 crore by exercising call option. Bank undertook borrowing as part of its asset liability management.
1.7 Depository Services
- Bank is Depository Participant (DP) of Central Depository Services of India Ltd. (CDSL) since September 1999.
- The Bank has also introduced Basic Services Demat Account Facility (BSDA)
1.8 Bancassurance
- Bank had added two new partners namely M/s Future Generali (Non-Life Insurance Company) and M/s Cigna TTK (Standalone Health Insurance Company) under Bancassurance in the month of Feb.2018. We have added two more partners in life insurance business i.e. M/s Aviva Life Insurance Company and M/s Reliance Nippon Life Insurance Company during FY 2017-18.
- 1241 branches are logged in as of 31.03.2018 for LIC Bancassurance business.
- Bank had created portal for Popularization of Mahaswastya Yojana, all new as well as renewal of cases are done through the portal in T 3 days. Now, the customer having internet banking facility can make the payment online and generate the policy instantaneously. This year, till 31.03.2018, 67 bank branches declared as BIMA Branch.
- During the year 2017-18, 5221 life policies and 148480 Non-Life policies were made.
- The Bank earned a commission of Rs.6.00 crore from life insurance and Rs.9.20 crore from non-life insurance business during the year 2017-18.
1.9 Government Business
- During the year 2017-18, 692312 challans of Direct Taxes and 97263 challans of Indirect taxes were collected by the branches. Our Branches are also collecting other State Govt. taxes including GRAS of Maharashtra State and the total number of Challans collected during the Year is 1074402. Total commission to the tune of Rs.7.20 Crore was received on Tax collection business from Central/State Government in current year compared to Rs.5.64 crores collected in previous year.
- As a service to senior citizens, the Bank is processing and crediting monthly pension payments of more than 110914 Central Government, Defence, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2017-18 is Rs.12.16 crore.
1.10 Income, Expenditure and Profitability
The total income of the Bank stood at Rs.12602 crore in FY 2017-18 as compared to Rs.13570 crore in FY 2016-17 .
The detailed income/ expenditure components are as under:
(Rs. in crore)
Particulars |
2017-18 |
2016-17 |
Variation (per cent) |
Interest / discount on advances / bills |
7072.71 |
8469.96 |
(16.50)% |
Income on investments |
2962.41 |
2829.47 |
4.70% |
Interest on interbank lending & other Interest |
1061.30 |
762.53 |
39.18% |
Total interest income |
11096.42 |
12061.96 |
(8.00)% |
Non-interest income |
1506.06 |
1508.07 |
(0.13)% |
Total Income |
12602.48 |
13570.03 |
(7.13)% |
Interest on deposits |
7133.17 |
8075.59 |
(11.67)% |
Interest on borrowings |
11.49 |
11.61 |
(1.03)% |
Other Interest expenditure |
562.02 |
800.07 |
(29.75)% |
Staff expenses |
1618.06 |
1807.29 |
(10.47)% |
Other Operating expenses |
1086.32 |
1048.40 |
3.62% |
Total Non-interest expenses |
2704.38 |
2855.69 |
(5.30)% |
Total Expenses |
10411.06 |
11742.96 |
(11.34)% |
Operating Profit |
2191.42 |
1827.07 |
19.94% |
Provisions and Contingencies |
3337.05 |
3199.58 |
4.30% |
Net Profit |
(1145.65) |
(1372.51) |
(16.53)% |
1.11 Financial Ratios
Particulars |
2017-18 |
2016-17 |
EPS (Rs.) |
(8.98) |
(11.75) |
Cost to Income Ratio (percent) |
55.24 |
60.98 |
Return on assets (percent) |
(0.73) |
(0.86) |
Return on equity (per cent) |
(42.43) |
(24.92) |
Book value per share (Rs.) |
23.73 |
46.96 |
Profit per Branch (Rs. in lakh) |
(62.06) |
(72.35) |
Profit per employee (Rs. in lakh) |
(8.86) |
(10.58) |
Business per Branch (Rs. in crore) |
126.56 |
126.83 |
Business per employee (Rs. in crore) |
18.07 |
18.54 |
Interest income as per cent to Average working funds |
7.03 |
7.55 |
Non-Interest income as per cent to average working funds |
0.95 |
0.94 |
Net Interest Margin (per cent) |
2.32 |
2.16 |
Operating Profit as per cent to average working Funds |
1.39 |
1.14 |
Staff expenses as a percent to average working funds |
1.03 |
1.13 |
Net worth (Rs. Crore) |
6159.92 |
5486.47 |
CRAR (%) (Basel II) |
11.00 |
11.18 |
Of which, Tier I CRAR (%) (Basel II) |
9.01 |
9.01 |
1.12 Capital from Government of India
The Government of India has infused total additional capital of Rs.3173 crore in two tranches; Rs.650 crore on 29.12.2017 and Rs.2523 crore on 27.03.2018.
1.13 Networth
The Bankâs Net Worth increased from Rs.5486.47 crore as on 31.03.2017 to Rs.6159.92 crore as on 31.03.2018.
1.14 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 11.003 % as on 31.03.2018, against the minimum of 10.875 % (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio stood at 8.974 %.
1.15 Dividend : Your Board do not propose any dividend for the FY 2017-18, as the Bank has incurred loss.
2. Resources: Branch network, Human Resources, IT infrastructure, customers responsiveness and others
2 .1 Branch/ATM Network:
As on 31.03.2018, the total branch network comprised of 1846 branches spread across all the States and 4 union territories. The branch network includes specialized branches in the area of Foreign Exchange, Government business, Treasury and International Banking, Industrial Finance, MSME and Hi-tech Agriculture, Pension Payment etc.
Area wise classification of branches as on 31.03.2018 is given in the table below:
Sr. No. |
Classification |
As on 31.03.2018 |
As on 31.03.2017 |
1 |
Rural |
616 |
618 |
2 |
Semi-Urban |
427 |
434 |
3 |
Urban |
329 |
343 |
4 |
Metro |
474 |
502 |
Total |
1846 |
1897 |
As part of Bankâs endeavor to curtail its operating expenses, Bank has merged 51 branches during the year, which were in close vicinity of each other, ensuring that no discomfort was caused to the customers.
ATM NETWORK
31.03.2018 |
31.03.2017 |
|
Offsite |
559 |
587 |
Onsite |
1305 |
1291 |
Total |
1864 |
1878 |
2.2 Human Resources Management
The Bank has put in place a comprehensive HRM Policy that provides the road map for acquiring appropriate & need based human resources, its development through training, job enrichment, reward and recognition for better performance, career progression, welfare and retention.
Recruitment: During the year 2017-18 the Bank has recruited employees as under:
333 Officers in Scale I, 6 Security Officers in Scale II, 22 Chartered Accountants in Scale II, 3 Officers-Admin in Scale II, 7 Officers-Admin in Scale III & 1 Scale IV officer in Risk Management Dept. The Bank has also recruited 388 Clerks & 13 Sub-staff.
During the year, 930 employees ceased to be in service on account of retirement, VRS, resignation, termination and death.
Inter scale promotions of officers were carried out during 2017-18. Following number of candidates were promoted.
JMGS-I TO MMGS-II |
MMGS-II to MMGS III |
MMGS-III TO SMGS- IV |
SMGS-IV TO SMGS-V |
SMGS-V TO SMGS- VI |
SMGS-VI TO TEGS- VII |
324 |
136 |
53 |
38 |
13 |
5 |
During the year 2017-18, 89 Substaff were promoted to Clerical cadre and 55 Part Time Sub-staff employees were absorbed in Sub-staff cadre, 196 Clerks were promoted to Scale I Officer.
Cadre wise staff position as of 31.3.2018 with sex ratio is as under:
Category |
Male |
% |
Female |
% |
Total |
Officers |
4751 |
72.89 |
1767 |
27.11 |
6518 |
Clerks |
2986 |
64.37 |
1653 |
35.63 |
4639 |
Sub-staff |
1586 |
89.35 |
189 |
10.65 |
1775 |
Total |
9323 |
72.09 |
3609 |
27.91 |
12932 |
The top three branches in disbursement and recovery of advances to SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar.
The Bank has healthy industrial relations.
The Bank has been complying with the reservation policy of Govt. of India. Special Cells at Head Office and all Zonal Offices are functioning to monitor the implementation of the reservation policies and to redress grievances of SC/ST/OBC & Physically challenged employees as well as ex-servicemen. The Bank has designated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all Zonal Offices. During the year periodical meetings were held with SC/ST/OBC Employees Association to discuss implementation of reservation policy and other constitutional safe guards and also to facilitate involvement in business growth.
Compassionate Appointments - A Scheme for âCompassionate Appointmentsâ / Payment of Ex-gratia lumpsum 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 compassionate appointments and payment of Ex-gratia lumpsum amount for the FY 2017-18 is as under:
Compassionate Appointments |
Payment of Exgratia |
||
Cadre |
No.of employees |
No.of employees |
Amount paid |
Clerk |
9 |
- |
- |
Substaff |
12 |
3 |
Rs.15.15 Lacs |
The Contributory Group Insurance Mediclaim Policy for all employees including retired employees, has been renewed w.e.f. 1.4.2018 and the Sum insured is upto Rs.10.00 Lacs for existing employees. The details of renewal of policy are as under:
Employees |
No.of Employees |
Premium paid |
Existing |
718 |
100.38 Lacs |
Retired |
1661 |
229.25 Lacs |
Total |
2379 |
329.63 Lacs |
The reimbursement of examination fees & payment of cash incentive / Honorarium in respect of courses from Indian Institute of Banking & Finance, MBA from reputed Institutions & CFA has been widened by adding courses in the list of courses for reimbursement of fees thereby making total 27 courses eligible for reimbursement of examination fees.
A policy for granting special leave and 100% reimbursement of hospitalization expenses to officers when he/she meets with an accident / injury while on duty is in place.
Training Activities:
The Bank has a training system which facilitates attention to regular periodic assessment of skill gaps at various levels in relation to existing and emerging business opportunities. Skill building in credit, Forex, customer relationship management, marketing of products and services, credit monitoring and recovery, risk management, technology based banking, branch management, complying with statutory, legal and policy requirements and preventive vigilance received special attention during the year.
Training programs were also held on thrust areas like financing MSMEs, retail lending, agriculture finance, soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 01.04.2017 to 31.03.2018 are as under-
Cadre |
No. of Programmes |
Training Days |
Employees Trained |
Officers |
174 |
677 |
4852 |
Clerks |
74 |
242 |
1637 |
S/staff |
35 |
81 |
810 |
Total |
283 |
1000 |
7299 |
2.3 Technology Initiatives
The Year 2017-2018 was a Technology Upscaling year for the Bank. The Bank had taken up & successfully initiated / upscaled various Major IT Projects during 2017-18 which are enumerated as under:
1. Bank has implemented 400 Self Update Pass Book Printer Kiosks & 106 Bunch Note Acceptor Machines at various locations across the Bank. The same shall be continued to ensure fulfilment of customer requirements/satisfaction.
2. CBS Contract has been renewed for a period of 5 years from 01/10/2017 to 30/09/2022 with revamped CBS Front-end and additional components viz. Automated Testing, Batch Job Automation, On-line Training for staffs, Revenue Leakage Monitoring etc.
3. Bank has tied up with BSNL for upgrading the Bandwidth of the existing Leased Lines to 2 Mbps. As on 31/03/2018, Bandwidth of 1329 leased lines is upgraded to 2 Mbps.
4. Bank is actively promoting BHIM Aadhaar Pay payment channel and 28104 Merchants are on-boarded as on 31/03/2018.
5. Centralized e-Surveillance system is implemented at 240 more ATMs taking the total count to 460 ATMs being covered under this system; ensuring safety and security of ATMs & Customers.
6. Integration of SWIFT with CBS System has been done as per RBI Timeline.
7. Bank under special project of DBT (Direct Benefit Transfer) had issued 99,764 Prepaid Cards to Pune Municipal Corporation during Apr-June 2017 Quarter for distribution to students of which 94,510 cards are activated. In respect of Nagpur Municipal Corporation 20,000 cards were issued of which 11,168 cards are activated.
8. Bank has implemented Public Financial Management System (PFMS) which is used by Government Agencies to make payments directly into the recipients Bank Accounts. As on 31/03/2018, Bank had 39395 Accounts under PFMS.
9. ISO 27001:2013 Re-Certification is achieved by the Bank during July 2017, for its 4 IT Divisions, thereby continuing the Quality ISMS (Information Security Management System) in our Bank.
Bank has collaborated with VISA for International Debit Cards and with NPCI for Rupay Debit Cards. EMV Chip Debit Cards are being issued to existing customers in place of Magnetic Stripe Cards as per RBI directives. As on 31/03/2018, 69.44 Lakh Debit Cards were issued, of which 25.40 Lakh are EMV Cards. Customers can now obtain EMV Cards from any Branch of the Bank.
Various facilities are being provided through our Internet Banking platform for facilitating online payment of taxes, utility bill payments, online shopping / e-commerce, railway reservation, LIC premium payment, e-SBTR etc and facility for viewing tax credit statement 26AS and Demat account with the Bank.
Bank has robust Information Security Management System (ISMS) framework in place. Bank has also implemented major security initiatives recommended by Gopalakrishna Committee for internal and external customers.
Bank has in place a captive Security Operations Centre (SOC) for monitoring Critical IT Infrastructure on 24 x 7 basis. As per RBI Directives, the same is being revamped to Cyber Security Operations Center (CSOC), by 31/05/2018.
Centralized Processing Cell - Liabilities (CPC-L), is functioning since September 2014 & all branches of the Bank are now linked to CPC-L.
2.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service to ensure customer satisfaction throughout the year by implementing all major recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee.
As a member of Banking Codes and Standards Board of India (BCSBI), Bank has adopted Code of Bankâs Commitment to Customers and Bankâs Code of Commitment to MSMEs.
Bank has printed folder called as âMy Folderâ containing all customer service policies, information on service charges, guidelines on Government Schematic Loans, Ombudsman and BCSBI Codes. The same is printed in Marathi, Hindi and English and supplied to all branches and Zones for making the same available to all customers on demand.
Duly documented policies approved by the Board, on âDepositâ, âCollection of Chequesâ, âRedressal of Grievancesâ, âCompensationâ , âOperational Procedure for Settlement of Claims of Deceased Depositorsâ and Customer Rights Policy are in place.
Customer Service Committees are formed at all branches and their meetings are conducted regularly on monthly basis. The Standing Committee on Customer Service at Head Office and Zonal Level Customer Service Committees at Zones, meet regularly to address and review various customer related matters and to take steps, for an improvement, on an ongoing basis.
The Committee of the Board on Customer Service meets on quarterly basis to monitor the quality of customer service, redressal of customer grievances and to ensure customers satisfaction.
Full-fledged grievances Redressal machinery is in place to respond promptly to customer grievances. The Bank has started internet based mechanism, Standardized Public Grievances Redressal System (SPGRS) for lodging the complaints or to give suggestions / feedback on services by the customers and for providing acknowledgement and status of their feedback / complaints as per the directions of Government of India.
Sr. No. |
Particulars |
2017-18 |
2016-17 |
1 |
Customer complaints at the beginning of the year |
54 |
73 |
2 |
Complaints received during the year |
8348 |
3246 |
3 |
Complaints redressed during the year |
8014 |
3265 |
4 |
Complaints pending at the end of the year |
388 |
54 |
2.5 KYC/ AML
Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards / Combating of Financing of Terrorism (CFT) and Obligation of Bank under Prevention of Money Laundering Act (PMLA) 2002.
The Bank has Board approved KYC-AML-CFT Policy in place. The said Policy is the foundation on which the Bankâs implementation of KYC norms, AML standards and CFT measures is based. The KYC compliance entails staff education as well as customer education for which the following measures are taken by the Bank.
A comprehensive list of KYC documents is uploaded on the Bankâs web site for the benefit of customers. Regular training sessions are conducted on KYC-AML-CFT guidelines at the Bankâs training establishments to sensitize the employees.
2.6 Risk Management
The Bank has put in place Risk Management Policies and Strategies to identify, measure, monitor and manage risk efficiently and establish control systems in line with the Bankâs aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor the risk at Bank level in accordance with RBI Guidelines. Bank has also constituted sub-committees headed by Top Management of Bank.
The Bank is Compliant to the RBI guidelines on disclosure requirements under Basel III Capital Regulations.
2.7 Brand Image:
Our Bank with a view to develop Brand Image of Bank, publicizes Bankâs various products coupled with Corporate Social Responsibilities.
Bank has extended Donations under its Corporate Social Responsilibilities to National Sports Development Fund (NSDF), Rotary Club Nigdi for the construction of water Tank in Nigade Village, Balewadi Stadium for providing Water Coolers, âShrutakevali Education Trustâ for Bahubali Childrenâs Hospital, Shravanabelagola, Karnataka, NAAM Foundation famous NGO working on issues like education, infrastructure, employment, food etc.
2.8 Citizenâs Charter:
The Bank has adopted the Charter since 2000-01, which details the duties and responsibilities of the Bank towards its customers. The charter is displayed at all the branches and Bankâs website. Some of the important responsibilities of Branches are;
- All branches of Banks in all parts of the country should provide the following customer services, more actively and vigorously to the members of public;
- Meeting the demands for fresh / good quality notes and coins of all denominations;
- Exchanging soiled notes;
- Accepting coins and notes either for transactions or exchange;
- Separate que for senior citizen.
3. SOCIO/MICRO ECONOMIC DEVELOPMENT.
3.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable and sustainable economic development through timely and hassle-free availability of credit for productive purposes to Small and Marginal Farmers, Micro and Small Enterprises, Retail Traders, Professional and Self Employed, Women Entrepreneurs and entrepreneurs from economically weaker sections.
The outstanding advances under Priority Sector (including investment) as of 31st March 2018, aggregate to Rs.40709 crore constituting 38.63% of the Adjusted Net Bank Credit (ANBC).
3.2 Agriculture
The Bank disbursed Rs.5960 Crore for agriculture and allied activities during the year 2017-18. The total outstanding advances to agriculture sector reached a level of Rs.17199 Crore as on 31.03.2018. Bank focused on growth of investment credit under Agriculture during the year 2017-18 and disbursed Rs.2627 Crore. Bank also entered into strategic tie-ups with Tractor Manufacturers, Micro Irrigation Companies for promoting farm mechanization and micro irrigation activities during the year. Bank has entered into an Agreement for Credit Guarantee with Small Farmers Agri-Business Consortium (SFAC) for financing to Farmer Producer Organizations (FPOs). Bank is successfully implementing farm loan waiver scheme of Govt of Maharashtra. Till 31st March 2018, bank has credited Rs.1070. 93 crore to 1.91 lakh farmersâ loan accounts under the aforesaid scheme.
The Bank undertook awareness/sensitization programmes for all the branches for increasing advances to agriculture by providing hassle free credit to farmers.
3.2.1 Mahabank Kisan Credit Card (MKCC)
This scheme gained popularity especially in rural areas where it is being propagated successfully and vigorously. The Bank has issued total 36495 Kisan Credit Cards to farmers. Credit flow to MKCC beneficiaries has reached to the level of Rs.7440.04 crore as on 31.03.2018.
3.3 Micro, Small and Medium Enterprises (MSME)
MSMEs are recognized as a major growth engine for the Indian economy. They generate opportunities for direct and indirect employment by facilitating use of natural resources and local skills to stem the tide of migration to urban areas and promote low investment enterprises. Finance is made available to viable enterprises at an attractive and low rate of interest. Online enquiry portal is made available on the Bankâs website.
Our Bank has adopted Simplified Loan Application for MSMEs and the same is displayed on the Bankâs website. The Bank has also adopted Bankâs Code of Commitment to Micro and Small Enterprise.
The Bankâs lending to Micro, Small and Medium Enterprises (Priority) is Rs.16283 Crore as at 31.03.2018. Advances to Micro enterprises under priority are 8.68% of ANBC against RBI mandatory target of 7.50% as of March 2018.
For promoting finance under this category, Bank has entered into strategic tie up arrangements with Truck / Vehicle / Passenger car manufacturers. Bank has also entered into MoU with âBhartiya Yuva Shaktiâ Trust and âde-Asraâ foundation for Credit facilitation and hand holding of the Micro entrepreneurs especially under Women and SC/ST categories. Bank has also partnered with âmyloanassochem.comâ portal for generating leads and converting them into business by financial assistance to MSMEs.
Centralized Processing Cells have been set up at all Zonal Offices for speedy disposal of MSME proposals.
3.3.1 MUDRA:
With the introduction of Pradhan Mantri MUDRA Yojana (PMMY) which mainly consists of non-farm enterprises in manufacturing, trading and services whose credit needs are below Rs.10.00 lakh. Bank is giving special attention to this segment. Loans given to this segment for income generation are known as MUDRA loans under Pradhan Mantri MUDRA Yojana (PMMY) and are branded accordingly.
Bank sanctioned Rs.2153.10 crore under PMMY against the target of Rs.2325.00 crore as on 31.03.2018. Bank achieved 92.61% of target allotted by Government under PMMY.
Bank has launched MUDRA Card on 16.9.2015 and issued 8621 MUDRA Cards upto 31.03.2018.
3.3.2 Coverage under CGTMSE Scheme
Under Credit Guarantee Fund Scheme for Micro, Small and Medium Enterprises of Government of India credit facilities up to Rs.200.00 lakh are covered, wherein no collateral security and third party guarantees are insisted by the Bank. The Bank has sanctioned loans of Rs.238.04 Crore to 2325 borrowers under this scheme up to March 2018.
3.3.3 Banks exposure to select segments. (Rs. in Crore)
Sr. No. |
Sector |
As on 31.03.2018 |
As on 31.03.2017 |
% increase ( /-) |
1 |
Micro / SHG Finance |
151 |
155 |
(2.49) |
2 |
Weaker Sector |
11324 |
12190 |
(7.10) |
3 |
SC/ST beneficiaries |
2333 |
1738 |
34.23 |
4 |
Minority Community |
2887 |
2921 |
(1.16) |
4. IMPORTANT SCHEMES/ PROJECTS OF THE BANK
4.1. Credit Flow to Retail Sector
The Bank is providing retail loans for salaried persons, professionals, businessmen and pensioners for purchase of house properties/ plots, repair/ renovation of house, purchase of consumer durables, two/four wheeler vehicles, education and loan for other personal needs. The retail loan portfolio of the Bank is Rs.16549 crore.
(Rs. in Crore) |
||||
SN |
Scheme |
Brief Description |
Portfolio as of Marâ18 |
NPA % |
1 |
Maha Super Housing Loan Scheme |
Housing Sector being the thrust area, Bank has various Housing Loan schemes in place to meet the needs of all segments. Bank offers housing loan for âpurchase / construction of new / existing house / flat, repairs / renovation / alteration of existing house / flat, purchase of plot and construction thereonâ |
13573 |
3.59 |
2 |
Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme |
Bank has launched scheme for purchase of New four Wheeler i.e. Car, Jeep, Multi Utility Vehicles (MUVs), Small Utility Vehicles (SUVs) etc. for personal use.(i.e. not for hiring/ ferrying passengers) for individuals (18 years and above). |
1068 |
3.15 |
3 |
Model Education Loan Scheme |
Bank is implementing Model Education Loan Scheme 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 |
995 |
8.91 |
4 |
Mahabank Top up Loan Scheme |
In order to extend additional credit support to existing housing loan borrowers as well as takeover of existing housing loan of other banks with additional facility of Top-up Loan, Bank has launched âMahabank Top Up loan Schemeâ. Under this scheme credit is extended for repair / renovation / furnishing of house, childrenâs education, Marriage of Children, Medical treatment, buying a vehicle or hi-tech gadgets etc. |
132 |
1.27 |
5 |
Mahabank Gold Loan Scheme |
With a view to tap the potential of gold loans as a lucrative asset and to cater 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 launched a retail loan product as âMahabank Gold Loan Schemeâ w.e.f. 26.09.2014. |
103 |
2.49 |
6 |
Mahabank Aadhar Loan Scheme |
To cater to the needs of our existing pension account holders to meet their personal expenses, pilgrimage, medical, domestic needs etc. Bank has re-launched âMahabank Aadhar Loan Schemeâ. |
407 |
0.95 |
4.2. Centralized Processing of loans
Bank has established Centralized Processing Cells for retail / commercial advances at all its 30 Zones for hassle free processing and sanctioning loans with aim to improve turnaround time.
4.3 Door Step Banking Services
Bank has introduced Door Step Banking Services for its High Networth Customers and the services include Corporate and Retail Cash pickup and delivery, Cheque Collection Services, at Clientâs Doorstep.
4.4 BOM SBI International Credit Card
- The BOM-SBI card base is 50064.
- The commission received from SBI Card is Rs.75.00 Lakhs during the year 2017-18.
4.5 ALTERNATE DELIVERY CHANNELS
4.5.1 INTERNET /SMS/Phone Banking
In terms of transactions, there was an increase of 28% in Internet Banking, 31% in Phone Banking and 33% in SMS banking over the previous year.
With continuous follow up and increase in net security through the Mahasecure for IBN users, substantial rise in users/online transactions is expected.
4.5.2 MOBILE BANKING
- Maha Mobile functionality has been customized and simplified for increasing the enrolments.
- A user manual on Internet Banking & New Maha Mobile functionality is sent to field staff for ready reference & marketing of the technology based products.
4.6 Tie Ups
4.6.1 Payment Gateway Services:
- Presently, Bank is providing the facility of Payment Gateway to all the customers through online aggregators as under:
Sr |
Particular |
Sr |
Particular |
1 |
M/s Atom Technologies |
7 |
M/s CC Avenues |
2 |
M/s BILL DESK |
8 |
M/s Citrus Payment |
Solutions Pvt Ltd |
3 |
M/s EBS solutions limited |
9 |
M/s PayTm |
4 |
M/s Ibibo i.e. PAYU |
10 |
M/s Techprocess Payment Solutions |
5 |
M/s TimesofMoney Limited |
11 |
M/s SBI e pay |
6 |
M/s Airpay |
5. CORPORATE SOCIAL RESPONSIBILITY
The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune District of Maharashtra have been undertaking various rural developmental activities for the benefit of farmersâ viz. Vermi compost, Re-development of Saline Soils, Soil Testing etc. Bank has established Soil Testing Lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil Testing Laboratory analyzed 5506 Soil and Water samples in the year 2017-18 and accordingly counseling was done. Farmers from the districts of Pune, Ahmednagar, Solapur and Satara are taking benefit of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF) established by the Bank, undertakes various projects and village improvement programmes. MARDEF is imparting training to farmers on various subjects in Agriculture. Trust has conducted 156 training programmes for farmers at RDC Bhigwan and Hadapsar, which has benefited 10753 farmers from April 2017 to March, 2018.
The Bank has established Seven Mahabank Self Employment Training Institutes (MSETI) for providing training to rural youth and women to enable them to acquire skills for self-employment through small business enterprises. The Institute has seven centers located at Pune, Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has so far conducted 1203 training batches & imparted training to 30307 educated unemployed youths. The settlement rate is 70%.
Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of Maharashtra and National Institute of Bank Management is actively involved in formation, nurturing, training and ensuring linkage of SHGs to Bank Credit.
The Bank has opened Financial Literacy and Credit Counselling Centers (FLCC) in Seven Lead Districts namely Pune, Nasik, Aurangabad, Satara, Jalna,Thane and Palghar for creating awareness about banking schemes. FLCCs have contacted 77141 beneficiaries during FY 2017-18.
Rural Self Employment Training Institutes (RSETIs) have conducted 198 training batches and trained 5061 candidates during FY 2017-18.
6. LEAD BANK SCHEME
6.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of Maharashtra State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane. Every year district credit plans for the districts are prepared and implemented with the cooperation of other banks as well as in coordination with District Collectors of respective Districts.
6.2 State Level Bankersâ Committee
The Bank is the Convenor of State Level bankersâ Committee (SLBC) for the State of Maharashtra and prepares State Annual Credit Plan. The Priority Sector plan for the year 2017-18 was for Rs.2,90,829/- crore which is one of the highest in the country. The same was approved in a special meeting held under the Chairmanship of Honâble Chief Minister of Maharashtra. SLBC also ensures holding of quarterly meetings regularly to oversee the implementation of State Annual Credit Plans, Priority Sector lending and Govt. sponsored schemes in the State. Apart from regular SLBC meetings, various other meetings are also organized by SLBC to coordinate between various member Banks, State Government, Government Agencies, Reserve Bank of India, NABARD and the Central Government. SLBC coordinates a network of more than 15,400 bank branches in the state.
SLBC has always been very proactive in the event of natural calamities if any, by issuing necessary guidelines in respect of relief measures, organizing special meetings and guiding the members whenever necessary.
As SLBC convener, Bank of Maharashtra coordinated implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A total of 221 lakh accounts were opened in the State. The State has already been declared as saturated for the purpose of opening of accounts. However, the process of opening of accounts is continued. SLBC also coordinates implementation of other Social Security schemes of the Central Government in the State.
S L B C Maharashtra has received award for highest Adhar seeding of PMJDY accounts from Department of Financial Services, MOF, New Delhi.
6.3. FINANCIAL INCLUSION / PMJDY:
Scheme |
Particulars |
2017-18 |
2016-17 |
FI Plan |
No of Transactions by BCA (in lakhs) |
110.74 |
109.75 |
Amount of transactions (Rs. in crore) |
5764.23 |
4702.81 |
|
PMJDY |
No. of PMJDY accounts (in lakhs) |
51.57 |
42.28 |
Of Which Aadhaar Seeded |
42.57 |
33.18 |
|
% of Aadhaar Seeding |
82.55% |
78.48 |
|
Of Which Mobile Seeding |
38.97 |
32.16 |
|
% of Mobile Seeding |
75.57% |
76.06 |
|
Balance in PMJDY A/c (in crore) |
1148.93 |
932.05 |
|
Average Balance per account actual |
2228 |
2205 |
|
Zero Balance PMJDY Accounts |
16.02 |
16.34 |
|
BSBD |
Total BSBD Accounts |
79.60 |
71.28 |
Accounts |
O/S Balance in BSBD A/c (in crore) |
1687.18 |
1410.85 |
Average balance per account (actual) |
2120 |
1979 |
|
Commission Paid for BC Services (in Crore) |
25.86 |
23.07 |
Bank has a full-fledged call centre with toll free number 1800-102-2636 for redressal of PMJDY grievances.
The Financial Literacy Material has been prepared in vernacular languages and supplied to all Branches / Bank Mitrs for supplying the same to accountholders during FLC camps.
Financial Literacy camps are organized different schools in districts of Maharashtra. All skilling centers/ITIs are mapped under financial literacy project
Bank has been awarded for excellent performance in the field of financial inclusion by DFS, MOF, GOI and from prestigious institutes like IBA and Economic Times.
7. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
7.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the Bank, having its Head Office at Aurangabad, Maharashtra State. Total no of branches as on 31.3.2018 stood at 409 in its area of operation covering 17 out of 36 districts of Maharashtra State.
All 409 branches and controlling offices are now under CBS. MGB opened 1 new branch during the year 2017-18.
Performance highlights are as under:
- Maharashtra Gramin Bank has achieved total business of Rs.13047.92 crore.
- Maharashtra Gramin Bank recorded Oprating Profit of Rs.227.29 crore and Net Profit of Rs.131.27 crore.
- Maharashtra Gramin Bank has achieved most of the target under MoU DAP given by sponsor Bank for the financial year 2017-18 The major key performance parameters are as under:
(Amount in Crore)
Sr |
Performance Parameter |
Target FY 2017-18 |
Actual as on 31.03.2018 |
1 |
Growth in Total Deposit (%) |
14.63 |
18.07 |
2 |
Cost of Deposit (%) |
5.49 |
5.03 |
3 |
Cost of Funds |
5.73 |
5.20 |
4 |
Operating Profit |
153.00 |
227.29 |
5 |
Net Profit |
58.00 |
131.27 |
6 |
Non interest income |
55.00 |
92.22 |
7 |
Operating Profit per employee |
0.10 |
0.15 |
8 |
Operating Profit per Branch |
0.37 |
0.56 |
9 |
Net Profit per employee |
0.04 |
0.09 |
10 |
Net profit per branch |
0.14 |
0.32 |
11 |
Cost to Income Ratio |
56 |
44 |
12 |
Net Interest Margin |
3.51 |
3.74 |
13 |
Closing NPA |
390.00 |
319.89 |
14 |
Recovery in Write off |
0.67 |
3.37 |
Under Pradhan Mantri Jan Dhan Yojana, surveys of all allotted 898 SSAs and 80 wards were conducted for identification of households having no bank account. The Bank has covered all allotted SSAs by engaging BCAs. Total 9.38 lakh PMJDY accounts have been opened till 31.03.2018 and 7.98 lakh RuPay ATM debit cards have been issued to PMJDY account holders. Maharashtra Gramin Bank has actively participated in the PMJJBY, PMSBY, APY and PMMY schemes.
7.2 Performance of METCO
Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO), the 100% subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide services auxiliary to banking such as:
- Consultation, Drafting & Execution of will
- Consultation, Drafting and Management of Private Trusts / Public Trusts
- Management of investments & house properties as attorney
- Guardianship of minorâs property
- Consultation for sale/purchase of property
- Filing of I-Tax Returns for individuals
The Company is located at Pune having its branch units at Pune, Vashi-Mumbai, Thane and Nagpur. It is managing about 1090 Public & Private Trusts. During the year, additional 32 Wills were added making total 1151 Will in its custody for execution.
At present, the Company manages properties both movable and immovable of 71 clients under the Power of Attorney. The Company also acts as the Trustees in respect of 101 policies under Married Womenâs Property Act and as Court appointed Guardian of minorâs property in 3 cases. The net profit of METCO for F.Y. 2017-18 is Rs.76.58 lakh.
8. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY
During the year 2017-18, the Bank has achieved various remarkable achievements in the field of Official Language implementation:
The Town Official Language Implementation Committee, Mumbai has secured Third Prize from the Rajbhasha Vibhag, Ministry of Home Affairs, Government of India for better implementation of Hindi at the hands of Hon. Governor, Maharashtra State in a grand function held at Mumbai. Our Bank is the convenor Bank for the committee.
Our Bank was awarded Second Prize by the Mumbai based prestigious Institution âAashirvadâ for better use of Hindi during the year.
Hindi day function was arranged at Head Office, Pune on 20th September 2017. Shri R. P. Marathe, MD & CEO of the Bank presided over the function. Shri Leeladhar Mandloi, renowned Poet and Director of Bharatiya Jnanpith was the Chief Guest. Shri R. K. Gupta, Executive Director & Shri M. C. Kulkarni, General Manager were also present in the function. Winners of the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.
An All India Rajbhasha Seminar was organized in Pune for all the Hindi Officers of the Bank. Shri R. P. Marathe, Managing Director & CEO of the Bank inaugurated the seminar. Shri Rajkiran Bhoir, General Manager, HRM & Rajbhasha reviewed the performance and guided all the participants. A special issue on Rajbhasha of House magazine âMahabank Pragatiâ was released in the seminar at the hands of Honâble MD & CEO Shri R. P. Marathe.
Monthly Rajbhasha E-Magazine âRajbhasha E-Pragatiâ is being regularly published every month. As a new initiative Rajbhasha E-Pragati in Brail script is also published for the benefit of differently able employees of the Bank.
Bank of Maharashtra is the convenor Bank for Town Official Language Implementation Committee (TOLIC) in Mumbai, Pune, Solapur, Latur & Jalgaon. Meetings of these committees were held regularly during the year and various activities of the committees were organized throughout the year as per the schedule.
Committee of Parliament on Official Language visited our Noida Branch, Faridabad Branch, Jodhpur Branch and Delhi Zonal Office during the year and reviewed Official Language Implementation work of the Bank. The honorable members of the Committee expressed their satisfaction regarding progressive use of Hindi and the implementation of new initiatives by the Bank.
Our bank was awarded First Prize by Town official Language Implementation Committee, Patna, First Prize by Town official Language Implementation Committee, Kota, First Prize by Town official Language Implementation Committee, Amravati, Third Prize by Town official Language Implementation Committee, Ahmedabad and Third Prize by Town official Language Implementation Committee, Jaipur for better use of Hindi during the year.
9. SECURITY.
Proactive steps were taken in view of the security requirements at the branches after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of Bank robberies, the breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any such eventuality.
10. DIRECTORSâ RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts for the year ended 31.03.2018:
- The applicable accounting standards of the Institute of Chartered Accountants of India, have been followed along with proper explanation relating to material departures, if any;
- The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, are consistently applied and proper disclosures are made for changes, if any;
- Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and profit of the Bank for the year.
- Proper and sufficient care was taken for maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks, in India; and
- The accounts have been prepared on a going concern basis.
11. CHANGES IN THE BOARD OF DIRECTORS
During the year 2017-18, the following changes took place in the Board of Directors:
- Smt. Vandita Kaul was appointed as Director of the Bank by the Government of India w.e.f 11.05.2017 in place of Shri Ateesh singh.
- Shri Premchandra Amolakchand Sethi, ceased to be the Shareholder Director of the Bank w.e.f 27.06.2017 on completion of his tenure of three years.
12. BUSINESS RESPONSIBILITY REPORT
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2017-18 of the Bank has been hosted on the Bankâs website i.e www.bankofmaharashtra.in. Any member interested in obtaining a physical copy of the same may write to the Company Secretary of the Bank.
13. ACKNOWLEDGEMENT
The Board of Directors wishes to express sincere gratitude to the Government of India, the Reserve Bank of India, the Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Indian Banksâ Association and Stock Exchanges and CDSL for their valuable advice and support; to the customers and shareholders for their patronage; to the correspondents and associates for their co-operation and to all the members of staff of âMahabank Familyâ for their unstinted commitment and contribution to the overall development of the Bank.
For and on behalf of the Board of Directors
Place : Pune (R. P. Marathe)
Date : 04th May, 2018 Managing Director and CEO
Mar 31, 2017
The 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) Economic and Banking Scenario 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 estimated the GDP to grow at 7.1% for 2016-17, on an annual basis.
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 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.
A major drive was undertaken for the revival of banking sector in 2016-17 including fresh issue of licenses for setting up small 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 percent in 2017 and 3.6 percent in 2018(WE0, April 2017) on account of stronger activity and robust global demand
On the domestic front, GDP growth is expected to rebound to 7.2% in 2018 and 7.7% in 2019 (IMF), with inflation expected to be around 5 per cent. Revival of subdued manufacturing and exports would remain the major concerns during FY18. However demonetization and lower borrowing costs are expected to revue 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 effect from July 1, 2017, is set to give a major boost to India''s growth and competitiveness.
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
1. Total Business of your Bank stood at Rs. 240590 crore as on 31.03.2017 as compared to Rs. 250230 crore last year.
2. Total deposit stood at Rs. 139053 crore as on 31.03.2017 as compared to Rs. 138990 crore last year.
3. Average Deposits stood at Rs. 133392 crore as on 31.03.2017 as compared to Rs. 124788 crore last year, registering a growth of 6.89% over last year.
4. CASA deposit stood at Rs. 62419 crore against last year figure of Rs. 50967 crore (Registering growth of 22.47%). Total CASA percentage stood at 44.89%.
5. Gross advances of the Bank stood at Rs. 101537 crore as on 31.03.2017 in comparison to Rs.111240 crore as on 31.03.2016
6. Operating Profit stood at Rs 1827.07 crore as on
31.03.2017 as compared to Rs. 2345.18 crore last year
7. Business per branch is Rs 126.83 Crore as on 31.03.2017.
8. Business per employee is Rs 18.54 Crore as on 31.03.2017
2.1 Sect oral Deployment of Credit
While financing to various segments of the economy, the Bank has endeavored to maintain a diversified credit portfolio, with a view to ensuring credit dispersion across sectors. The Bank has continued its efforts to support core, manufacturing and priority sectors as well as infrastructure projects, which serve to drive economic growth. This focus of the Bank will continue in future, in line with the national economic growth priorities.
Industry wise credit deployment as on 31.03.2017 is as under:
Sr. No. |
Percentage to total O/s |
O/s as on 31.03.2017 |
Percentage to total O/s |
O/s as on 31.03.2016 |
Percentage to total O/s |
1 |
Industry |
44811.65 |
44.13 |
60953.31 |
54.79 |
Of which |
|||||
[Infrastructure |
9931.29 |
9.78 |
13055.62 |
11.74 |
|
ii. Chemicals, Dyes, Paints etc |
3128.00 |
3.08 |
3202.56 |
2.88 |
|
iii. Petroleum |
1018.97 |
1.00 |
2199.72 |
1.98 |
|
iv. Basic Metal and Metal Product |
4975.65 |
4.90 |
6318.93 |
5.68 |
|
v. NBFCs and Trading |
13784.69 |
13.58 |
17258.56 |
15.50 |
|
vi. Engineering |
3537.38 |
3.48 |
3649.50 |
3.28 |
|
vii. Construction |
119.84 |
0.12 |
3.49 |
0.00 |
|
viii. Other Industries |
8315.83 |
8.19 |
10164.32 |
9.14 |
|
2 |
Agriculture |
15491.45 |
15.26 |
14851.17 |
13.35 |
3 |
MSME |
20419.50 |
20.11 |
22143.75 |
19.91 |
4 |
Housing |
13595.25 |
13.39 |
10550.01 |
9.48 |
5 |
Education |
891.05 |
0.88 |
804.06 |
0.72 |
6 |
Exports |
1212.71 |
1.19 |
1226.61 |
1.10 |
7 |
Commercial Real estate |
5115.21 |
5.04 |
5811.72 |
5.22 |
Gross Advances |
101536.82 |
111240.28 |
2.2 Quality and NPA Management
The Bank has set up âAsset Recovery Cells(ARC)â at all Zonal offices to ensure focused efforts for up gradation and NPA recovery
The Bank has also set up twelve Asset Recovery Branches (ARBs) across its Zones for large NPA a/cs more particularly where legal actions are in progress so as to make focused follow up of large NPAs
Bank has been implementing Suo Motu non-discriminatory and non-discretionary One Time Settlement (OTS) Schemes. During 2016-17 such scheme i.e. âMahabank Rahat Yojanaâ was introduced for NPAs with Ledger Balance up to Rs.25.00 lakhs. Sanction letters pre-approved by Head Office were sent to the eligible borrowers. Additional relief was given to drought affected borrowers with balance up to Rs. 10.00 Lakhs.
During the year 2016-17 another special Suo Motu OTS Scheme (Viz. âMahabank Karimukti Yojanaâ) was introduced for recovery in Regular Written Off (RWO) a/cs up to Rs 25 lakhs.
In case of NPA a/cs with dues of Rs.1.00 crore to Rs.10.00 crore; Resolution Agents are appointed on selective basis so as to have an early resolution.
Recovery in smaller NPA accounts (up to Rs.25 lakhs) the services of Recovery Agents are engaged.
Bank has also made intensive follow up with the defaulting borrowers through visits, letters, notices, Recovery Camps, Lok Adalats, actions under SARFAESI / DRT Act.
Position of Non-Performing Assets is as under;
Particulars |
Amt. as on 31.03.17 |
Amt. as on 31.03.16 |
Percentage of ( /-) |
Gross NPA |
17188.72 |
10385.85 |
65.50 |
% to advances |
16.93 |
9.34 |
XX |
Net NPA |
11229.56 |
6832.03 |
64.37 |
% to advances |
11.76 |
6.35 |
XX |
Cash Recovery |
876.42 |
772.82 |
12.99 |
2.3 Foreign Exchange Business
Particulars |
2016-17 |
2015-16 |
Percentage of ( /-) |
Total FEX Business Turnover |
598503 |
595233 |
0.55 |
Merchant Business Turnover |
36852 |
29562 |
24.66 |
Profit in FEX Business |
101.91 |
77.83 |
30.93 |
The International Division has given more thrust on Merchant Business (high yielding Exchange Profit) resulting into growth of 24.66%. in turnover and 30.93% in profit. 37 B Category branches across the country cater to the international business needs of the customers of the Bank. Apart from TIBB at Mumbai as âAâ category. The Bank has also NRI Cell to cater the specific needs of NRI clients.
2.4 Investment
The breakup of Investments into SLR & Non-SLR investments is given below:
- The Gross Investments as on 31.03.2017 stood at Rs 38841.56 crore, of which Rs 31613.02 crore are SLR securities and Rs 7228.54 crore are Non-SLR Securities. The excess SLR securities as on 31.03.2017 stood at Rs 1855.01 crore.
- The net investments (net of provisions) stood at Rs 38590.18 crore as on 31.03.2017 as compared to Rs 36230.87 crore as on 31.03.2016. Investments under Held to Maturity (MTM) category consist of 77.66%, while Available for Sale (AFS) comprised of 22.34% of total investment portfolio as of 31.03.2017. The net interest income from investment activity increased to Rs 2829.47 crore from Rs 2735.20 crore during the last year (growth of 3.45%).
- The Non-Performing Investments stood at Rs 655.45 crore as on 31.03.2017.
2.5 Merchant Banking:
The Bank handled 70 issues (previous year 126 issues) of Commercial paper amounting to Rs 30170 crore (previous year Rs 54060 crore) for its clients as an Issuing and Paying Agent (IPA) during the year.
2.6 Borrowings:
The borrowing of the Bank as on 31st March 2017 stood at Rs 8136.65 crore including re-finance as under;
Particular |
Amount as at 31.03.2017 |
Amount as at 31.03.2016 |
Percentage of ( /-) |
Total Borrowing |
8136.65 |
9228.10 |
(0.12) |
Borrowing - CBLO |
0 |
74.54 |
(1.00) |
Of which Refinance from |
2892.95 |
4046.17 |
(0.29) |
NABARD |
420 |
893.34 |
(0.53) |
EXIM BANK |
324.25 |
331.27 |
(0.02) |
RBI |
0 |
500 |
(1.00) |
NHB Refinance |
277.89 |
370.52 |
(0.25) |
Mudra Refinance |
370.81 |
370.81 |
0.00 |
SIDBI |
1500 |
1580.23 |
(0.05) |
Borrowings in the form of bonds & debentures capital instruments |
5225 |
5100 |
0.02 |
Borrowings outside India |
18.65 |
7.34 |
1.54 |
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
- Bank is Depository Participant (DP) of Central Depository Services of India Ltd. (CDSL) since September 1999.
- The Bank has also introduced Basic Services Demat Account Facility (BSDA)
2.8 Banc assurance
- Bank had added two new partners namely M/s Future Generali (Non-Life Insurance Company) and M/s Cigna TTK (Standalone Health Insurance Company) under Banc assurance in the month of Feb.2017.
- Insurance for all the securities charged to the Bank may be done invariably under Banc assurance arrangement with UII Co. Ltd. and M/s Future Generali.
- 1241 branches are logged in as of 31.03.2017 for LIC Banc assurance business.
- We had created portal for Popularization of Mahaswastya Yojana, All new as well as renewal of cases are done through the portal in T 3 days. Now, the customer having internet banking facility can make the payment online and generate the policy instantaneous. This year, till 31.03.2017, 79 bank branches declared as BIMA Branch.
- During the year 2016-17, 6993 life policies and 102752 Non-Life policies were made.
- The Bank earned a commission of Rs 6.03 crore from life insurance and Rs 4.94 crore for non-life insurance business during the year 2016-17.
2.9 Government Business
- During the year 2016-17, 746218 challans of Direct Taxes and 178751 challans of Indirect taxes were collected by the branches. Our Branches are also collecting other state Govt. taxes including GRAS of Maharashtra State and the total number of Challans collected during the Year is 1189393. Total commission to the tune of Rs 5.64 Cr was received on Tax collection business from Central Government.
- The Bank is processing and crediting monthly pension payments of more than 1,14,886 Central Government, Defense, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2016-17 is Rs. 13.58 Cr.
2.10 Income, Expenditure and Profitability
The total income of the Bank decline from Rs 14072.27 crore in FY 2015-16 to Rs. 13570.03 crore in FY 2016-17
Particulars |
2016-17 |
2016-16 |
Variation (per cent) |
Interest / discount on advances / bills |
8469.96 |
9934.83 |
(14.74) |
Income on investments |
2829.47 |
2735.20 |
3.45 |
Interest on interbank lending & other Interest |
762.53 |
382.95 |
99.12 |
Total interest income |
12061.96 |
13062.98 |
(7.59) |
Non-interest income |
1508.07 |
1019.29 |
47.95 |
Total Income |
13670.03 |
14072.27 |
(3.57) |
Interest on deposits |
8075.59 |
8421.88 |
(4.11) |
Interest on borrowings |
11.61 |
54.88 |
(78.84) |
Other Interest expenditure |
800.07 |
697.52 |
14.70 |
Staff expenses |
1807.29 |
1540.98 |
17.28 |
Other Operating expenses |
1048.40 |
1011.83 |
3.61 |
Total Non-interest expenses |
2866.69 |
2662.81 |
11.86 |
Total Operating Expenses |
11742.96 |
11727.10 |
0.14 |
Operating Profit |
1827.07 |
2345.18 |
(22.09) |
Provisions and Contingencies |
3199.58 |
2244.49 |
42.55 |
Net Profit |
(1372.51) |
100.69 |
(1463.10) |
2.11 Financial Ratios
Particulars |
2016-17 |
2016-16 |
EPS (Rs) |
(11.75) |
0.91 |
Cost to Income Ratio (percent) |
60.98 |
52.12 |
Return on assets (percent) |
(0.86) |
0.07 |
Return on equity (per cent) |
(24.92) |
1.39 |
Book value per share (Rs) |
46.96 |
63.36 |
Profit per Branch (Rs in lakh) |
(72.35) |
5.31 |
Profit per employee (Rs in lakh) |
(10.58) |
0.73 |
Business per Branch (Rs in crore) |
126.83 |
132.05 |
Business per employee (Rs in crore) |
18.54 |
18.18 |
Interest income as per cent to Average working funds |
7.55 |
8.71 |
Non-Interest income as per cent to average working funds |
0.94 |
0.68 |
Net Interest Margin (per cent) |
1.99 |
2.59 |
Operating Profit as per cent to average working Funds |
1.14 |
1.56 |
Staff expenses as a percent to average working funds |
1.13 |
1.03 |
Dividend (per cent) |
0 |
0 |
Net worth (Rs Crore) |
5486.47 |
7403.05 |
CRAR (%) (Basel III) |
11.18 |
11.20 |
Of which, Tier I (%) |
9.01 |
9.02 |
CET 1 |
7.28 |
7.88 |
2.12 Capital from Government of India
During the March 2017 quarter, Government of India vide its letter no. 7/38/2014-BOA dated 16.03.2017 infused Rs.300.00 crore by way of preferential allotment of equity shares and the amount was maintained under Share application money pending for allotment, till the allotment of equity shares done. However, RBI has allowed to treat share application money pending for allotment as CET1 capital for computation of CRAR.
2.13 Net worth
The Bank''s Net Worth stood at Rs.5486.47 crore as on 31.03.2017 as against Rs 7403.05 crore as on 31.03.2016.
2.14 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 11.18% as on 31.03.2017, against the minimum of 10.25% (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio (including CCB) stood at 7.28%
2.15 Dividend : Your Directors do not propose any dividend for the FY 2016-17, as the Bank has incurred loss.
3 .1 Branch/ATM Network:
As on 31.03.2017, the total branch network comprised of 1897 branches spread across all the States and 4 union territories. The branch network includes specialized branches in the area of foreign exchange, Government business, Treasury and International Banking, Industrial Finance, Small Scale Industry and Hi-tech agriculture, Pension Payment, Self Help Groups etc.
Area wise classification of branches as on 31.03.2017 is given in the table below:
Sr. No. |
Classification |
As on 31.03.2016 |
As on 31.03.2017 |
1 |
Rural |
658 |
618 |
2 |
Semi-Urban |
434 |
434 |
3 |
Urban |
366 |
343 |
4 |
Metro |
437 |
502 |
Total |
1895 |
1897 |
# 36 Branches like Service /Retail Asset/Recovery Br''s are converted as a âBack Officeâ as per RBI Guidelines on 01.06.2014.
ATM NETWORK
31.03.2016 |
31.03.2017 |
|
Offsite |
577 |
587 |
Onsite |
1284 |
1291 |
Total |
1861 |
1878 |
3.2 Human Resources Management
The Bank has put in place a comprehensive HRM Policy that provides the road map for acquiring appropriate & need based human resources, its development through training, job enrichment, reward and recognition for better performance, career progression, welfare and retention.
During the year 2016-17 the Bank recruited 127 Officers in Scale I, 1 Security Officer in Scale II, 79 Clerks and 12 Sub staff.
During the year, 1017 employees ceased to be in service on account of retirement, VRS, resignation, termination and death.
Inter scale promotions of officers were carried out during 201617. Following number of candidates were promoted.
JMGS-I TO MMGS-II |
MMGS-II to MMGS III |
MMGS-III TO SMGS-IV |
SMGS-IV TO SMGS-V |
SMGS-V TO SMGS-VI |
SMGS-VI TO TEGS-VII |
708 |
90 |
108 |
59 |
24 |
4 |
During the year 2016-17, 19 Sub staff were promoted to Clerical cadre.
Cadre wise staff position as of 31.3.2017 with sex ratio percentage is as under :
Category |
Male |
% |
Female |
% |
Total |
Officers |
4710 |
73.82 |
1670 |
26.18 |
6380 |
Clerks |
3005 |
63.62 |
1718 |
36.38 |
4723 |
Sub-staff |
1682 |
89.90 |
189 |
10.10 |
1871 |
Total |
9397 |
72.43 |
3677 |
27.57 |
12974 |
The top three branches in disbursement and recovery of advances to SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar.
The Bank has been allocating up to 3 per cent of its net profit towards various schemes for the welfare of staff including retired staff. The welfare schemes are administered by a Central Welfare Committee consisting of management & employees representatives.
The Bank has healthy industrial relations.
The Bank has been complying with the reservation policy of Govt. of India. Special Cells at Head Office and all Zonal Offices are functioning to monitor the implementation of the reservation policies and to redress grievances of SC/ST/OBC & Physically challenged employees as well as ex-servicemen. The Bank has designated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all Zonal Offices. During the year periodical meetings were held with SC/ST/OBC Employees Association to discuss implementation of reservation policy and other constitutional safe guards and also to facilitate involvement in business growth.
The number of employees belonging to different categories is as under:
S No |
Category of Employees |
No. of Employees |
Percentage to total |
1. |
Women |
3577 |
27.57% |
2. |
Physically Challenged |
214 |
1.65% |
3. |
SC Employees |
2370 |
18.27% |
4. |
ST Employees |
1035 |
7.98% |
5. |
OBC Employees |
2163 |
16.67% |
6. |
General Employees |
7406 |
57.08% |
TOTAL employees working in the Bank |
12974 |
Rosters have been maintained as per Government guidelines and are regularly inspected/ checked.
Compassionate Appointments - A Scheme for âCompassionate Appointments'' / Payment of Ex-gratia lumpsum amountâ 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 compassionate appointments and payment of Ex-gratia lumpsum amount for the year 2016-17 is as under :
Compassionate Appointments |
Payment of Excreta |
||
Cadre |
No.of employees |
No.of employees |
Amount paid |
Clerk |
6 |
2 |
Rs.14.00 Lacs |
Substaff |
12 |
2 |
Rs.12.00 Lacs |
The Contributory Group Insurance Medic aim Policy for all employees including retired employees, has been renewed w.e.f. 1.4.2017 and the Sum insured is increased upto Rs.10.00 Lakhs for existing employees. The details of renewal of policy areas under :
Employees |
No.of Employees |
Premium paid |
Existing |
970 |
117.30 |
Retired |
1740 |
219.44 |
Total |
2710 |
336.74 |
The reimbursement of examination fees & payment of cash incentive / Honorarium in respect of courses from Indian Institute of Banking & Finance, MBA from reputed Institutions & CFA has been widened by adding three more courses in the list of courses for reimbursement of fees thereby making total 25 courses eligible for reimbursement of examination fees.
A policy for granting special leave and 100% reimbursement of hospitalization expenses to officers when he meets with an accident / injury while on duty is in place.
Policy for âgranting incentives, to officers posted & transferred in North eastern zones from other zones'' framed as per the directives of Government of India.
Training Activities:
The Bank has a training system which facilitates attention to regular periodic assessment of skill gaps at various levels in relation to existing and emerging business opportunities. Skill building in credit, Forex, customer relationship management, marketing of products and services, credit monitoring and recovery, risk management, technology based banking, branch management, complying with statutory, legal and policy requirements and preventive vigilance received special attention during the year.
Training programs were also held on thrust areas like financing SMEs, retail lending, agriculture finance, soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 1.4.2016 to 31.03.2017 are as under-
Cadre |
No. of Prog |
Training Days |
Employees Trained |
Officers |
146 |
563 |
3984 |
Clerks |
44 |
102 |
684 |
S/staff |
40 |
76 |
619 |
Total |
230 |
741 |
5287 |
3.3 Technology Initiatives
The Bank had taken off & successfully initiated / launched various Major IT Projects during 2016-2017 which are enumerated as under:
1. During the Year 2016-17, Upgrade of Contact Center Operations including Integrated Voice Response System (IVRS) was successfully done & System is made operational
2. Bank launched âMaha UPI'', its UPI mobile application from 26/08/2016. As on 31/03/2017, 1,10,749 customers are registered for UPI.
3. ISO 27001:2013 Re-Certification achieved by the bank during September 2016, for its 4 IT Divisions, thereby continuing the Quality ISMS (Information Security Management System) in our Bank.
4. Cheque Truncation System (CTS) is implemented at all South Grid Centers as per RBI directives..
5. Bank started the Paper-less ATM-RePIN facility (Green PIN) for ATM Card through its ATM Machines. This facility overcomes all shortcomings of the conventional re-pin request process.
6. As per Directives of GOI received from time to time during the Demonetization Phase, Bank has effected timely changes in ATM Cash Withdrawal Limits. Also, the Bank successfully completed the massive exercise of physically recalibrating all its 1878 ATMs in time bound manner. These ATMs have been recalibrated on account of demonetization, for the New Rs.500 & Rs.2000 notes.
7. New Internet Banking Portal is launched for Retail Customers.
8. Bank has implemented Self Update Pass Book Printers & Bunch Note Acceptor Machines in a big way at various locations across the Bank. The same shall be continued to ensure fulfillment of customer requirements/satisfaction.
Bank''s Own EFT Switch, is helping the bank to derive significant advantages like reduced turn-around-time to introduce new ATM Product, Better customer experience, Reduced risk, Instant Hot-listing of a card through multiple channels, Value Added Services etc.
Bank has collaborated with VISA for International Debit Cards and with NPCI for Rupay Debit Cards. Bank has commenced issue of Rupay Platinum Cards. As on 31/03/2017, the total ATM card base of the Bank stood at 64.54 Lakhs, which includes 1.11 Lakh Rupay Platinum Chip cards.
Bank''s Internet Banking, Mobile Banking, UPI & other online applications are well received by our Customers. As on 31/03/2017, the number of customers registered for Internet Banking, Mobile Banking & UPI stood at 6.97 Lakhs, 2.92 lakhs & 1.11 Lakhs respectively.
Various facilities are being provided through our Internet Banking platform for facilitating online payment of taxes, utility bill payments, online shopping / e-commerce, railway reservation, LIC premium payment, e-SBTR etc and facility for viewing tax credit statement 26AS and Demat account with the Bank.
Bank has robust Information Security Management System (ISMS) framework in place. Its information security policy statement being: âBank of Maharashtra is committed to protect and safeguard the critical information of all stakeholders in order to ensure secure business operationsâ. Bank has also implemented major security initiatives recommended by Gopalakrishna Committee for internal and external customers.
Bank has in place a captive Security Operations Centre (SOC) for monitoring Critical IT Infrastructure on 24 x 7 basis. The process for revamping the existing Security Operation Center (SOC) to Cyber Security Operations Center (CSOC), as per RBI Directives is initiated & in progress.
Bank is handling the e-Payments of State Government Taxes of Maharashtra, Karnataka, Tamil Nadu, Madhya Pradesh & Rajasthan States.
Inward Clearing in Mumbai, Pune & Ahmedabad Centers is already outsourced. Clearing processing for outward clearing was made live in Nagpur Zone during April 2016. It is being extended to Pune Centers in a phased manner, so as to move towards the goal of Centralized Clearing in future.
In the coming FY 2017-2018, Bank proposes to take up / implement the following IT Initiatives -
1. CBS Contract Renewal.
2. Cyber Security Operations Centre (CSOC)
3. Additional Network Service Provider for Leased Line / VSAT Branches
4. LMS- end to end- LOS to Recovery, OTS, EWS, Lead Management etc
5. International Financial Reporting Standards (IFRS).
6. Upgrade of MIS ADF system.
7. Integrated Risk Management Solution.
8. SWIFT DR setup.
3.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service to ensure customer satisfaction throughout the year by implementing all maior recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee.
As a member of Banking Codes and Standards Board of India (BCSBI), Bank has adopted Code of Bank''s Commitment to Customer and Bank''s Code of Commitment to MSMEs.
Bank has printed folder called as âMy Folderâ containing all customer service policies, information on service charges, guidelines on Government Schematic Loans, Ombudsman and BCSBI Codes. The same is printed in Marathi, Hindi and English and supplied to all branches and Zones for making the same available to all customers on demand.
Duly documented policies approved by the Board, on âDepositsâ, âCollection of Chequesâ, âRedressal of Grievancesâ, âCompensationâ , âOperational Procedure for Settlement of Claims of Deceased Depositorsâ and Customer Rights Policy are in place.
Customer Service Committees are formed at all branches and their meetings are conducted regularly on monthly basis. The Standing Committee on Customer Service at Head Office and Zonal Level Customer Service Committees at Zones, meet regularly to address and review various customer related matters and to take steps, for an improvement, on an ongoing basis.
The Committee of the Board on Customer Service meets on quarterly basis to monitor the quality of the customer service, redressal of customer grievances and to ensure customers satisfaction.
Full-fledged grievances Redressal machinery is in place to respond promptly to customer grievances. The Bank has started internet based mechanism, Standardized Public Grievances Redressal System (SPGRS) for lodging the complaints or to give suggestions / feedback on services by the customers and for providing acknowledgement and status of their feedback / complaints as per the directions of Government of India.
Sr. No. |
Particulars |
2016-16 |
2016-17 |
1 |
Customer complaints at the beginning of the year |
2 |
73 |
2 |
Complaints received during the year |
3218 |
2912 |
3 |
Complaints redressed during the year |
3147 |
2931 |
4 |
Complaints pending at the end of the year |
73 |
54 |
It is Bank''s endeavor to redress all complaints within a week''s time.
Kiosk Machine has been installed at Head Office to enable the customer to register online complaints / suggestions and is in operation since 14.03.2013.
3.5 KYC/ AML
Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards / Combating of Financing of Terrorism (CFT) and Obligation of Bank under Prevention of Money Laundering Act (PMLA) 2002.
The Bank has Board approved KYC-AML-CFT Policy in place. The said Policy is the foundation on which the Banks implementation of KYC norms, AML standards and CFT measures is based. The full KYC compliance entails staff education as well as customer education for which the following measures are taken by the Bank.
IBA has advised the Banks to implement 88 parameters so far for generation of AML alerts. Bank has implemented 43 parameters out of 49 parameters as per IBA guidelines and the remaining 6 parameters are related to 3rd party products. In addition to these the FEX centers/branches have been sensitized on the guidelines on Trade Based Money Laundering issued by FIU-IND to prevent fraud/money laundering.
A comprehensive list of KYC documents is uploaded on the Banks web site for the benefit of customers. Regular training sessions are conducted on KYC-AML-CFT guidelines at the Banks training establishments to sensitize the employees.
3.6 Risk Management
The Bank has put in place Risk Management Policies and Strategies, enables it to identify, measure, monitor and manage risk efficiently and establishes control systems in line with the Bank''s aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor the risk at Bank level in accordance with RBI Guidelines. Bank has also constituted sub-committees headed by Top Management of Bank.
The Bank is Compliant to the RBI guidelines on disclosure requirements under Basel III Capital Regulations.
3.7 Brand Image:
Your Bank with a view to develop Brand Image of Bank, publicize Bank''s various products coupled with Corporate Social Responsibilities has Marketing & Publicity Policy as well as independent vertical.
Bank has extended Donations under its Corporate Social Responsibilities to National Sports Development Fund (NSDF), Rotary Club Nigdi for the construction of water Tank in Nigade Village, Balewadi Stadium for providing Water Coolers, âShrutakevali Education Trustâ for Bahubali Children''s Hospital, Shravanabelagola, Karnataka, NAAM Foundation famous NGO working on issues like education, infrastructure, employment, food etc.,
3.8 Citizenâs Charter:
The Bank has adopted the Charter since 2000-01, which details the duties and responsibilities of the Bank towards its customers. The charter is displayed at all the branches and Bank''s website. Some of important responsibility of Branches are;
- All branches of banks in all parts of the country should provide the following customer services, more actively and vigorously to the members of public.
- Meeting the demands for fresh / good quality notes and coins of all denominations.
- Exchanging soiled notes, and
- Accepting coins and notes either for transactions or exchange.
- Separate que for senior citizen
4. SOCIO/MICRO ECONOMIC DEVELOPMENT.
4.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable and sustainable economic development by timely and hassle-free availability of credit for productive purposes to Small and Marginal Farmers, Micro and Small Enterprises, Retail Traders, Professional and Self Employed, Women Entrepreneurs and entrepreneurs from economically weaker sections.
The outstanding advances under Priority Sector as of 31st March 2017, aggregates to Rs. 40388.63 Crore constituting 34.99% of the Adjusted Net Bank Credit (ANBC).
4.2 Agriculture
The Bank disbursed Rs. 7752 Crore for agriculture and allied activities during the year 2016-17. The total outstanding advances to agriculture sector reached a level of Rs.17960 Crore as on 31.03.2017 (growth of 4.57%). Bank focused on growth of investment credit under Agriculture during the year 2016-17 and disbursed Rs. 3042 Crore. Bank also entered into strategic tie-up arrangements with Tractor Manufacturers, Micro Irrigation Companies for promoting farm mechanization and micro irrigation activities during the year.
The Bank undertook awareness/sensitization programmes for all the branches for increasing advances to agriculture by providing hassle free credit to farmers.
4.2.1 Mahabank Kisan Credit Card (MKCC)
This scheme gained popularity especially in rural areas where it is being propagated successfully and vigorously. The Bank has issued total 601303 Kisan Credit Cards to farmers. Credit flow to MKCC beneficiaries has reached to the level of Rs.7057 Crore as on 31.03.2017 (growth of 5.47 %).
4.3 Micro, Small and Medium Enterprises (MSME)
SMEs are recognized as a major growth engine for the Indian economy. They generate opportunities for direct and indirect employment by facilitating use of natural resources and local skills to stem the tide of migration to urban areas and promote low investment enterprises. Finance is made available to viable enterprises at an attractive and low rate of interest. On line enquiry portal is made available on the Bank''s website.
Our Bank has adopted Simplified Loan Application for MSEs and the same is displayed on the Bank''s website. The Bank has also adopted Bank''s Code of Commitment to Micro and Small Enterprise and the same is displayed on the Bank''s website.
The Bank''s lending to Micro, Small and Medium Enterprises (Priority NP) is Rs. 20585.22 Crore as at 31.03.2017. Advances to Micro enterprises under priority are 7.48 % of ANBC against RBI target of 7.50 % as of March 2017.
For promoting finance under this category, Bank has entered into strategic tie up arrangements with Truck / Vehicle / Passenger car manufacturers. Bank has also entered into MoU with Bharatiya Yuva Shakti Trust and de-Asra foundation for Credit facilitation and hand holding of the Micro entrepreneurs specially under Women and SC/ST categories. Bank has also partnered with myloanassochem.com portal for generating leads and converting them into business to the bank by financial assistance to MSMEs.
Centralized Processing Cell have been set up at all Zonal Offices for speedy disposal of MSME proposals.
4.3.1 MUDRA: With the introduction of Pradhan Mantri MUDRA Yojana (PMMY) which mainly consists of non-farm enterprises in manufacturing, trading and services whose credit needs are below Rs. 10.00 lakh. Bank is giving special attention to this segment. Loans given to this segment for income generation are known as MUDRA loans under Pradhan Mantri MUDRA Yojana (PMMY) and branded accordingly.
Bank disbursed Rs 1732.72 Crore under PMMY against the target of Rs 1800.00 Crore as on 31.03.2017. Bank achieved 96.54 % of target allotted by Government under PMMY.
Bank has launched MUDRA Card on 16.9.2015 and so far issued 8281 MUDRA Cards as on 31.3.2017
4.3.2 Coverage under CGTMSE Scheme
Under Credit Guarantee Fund Scheme for Micro, Small and Medium Enterprises of Government of India credit facilities up to Rs.100.00 lakh are covered, wherein no collateral security and third party guarantee are insisted by the Bank. For the accounts covered under this scheme, Bank is bearing 50% annual guarantee fee for loans above Rs 10.00 lakh. The Bank has sanctioned loans of Rs 2228.75 Crore to 25955 borrowers under this scheme up to March 2017. During the current FY, coverage under Credit Guarantee Fund Scheme has increased by 11.12%.
4.3.3 Banks exposure to important segments.
S N |
Sector |
Outstanding as on 31.03.2017 |
Outstanding as on 31.03.2016 |
% of increase ( /-) |
1 |
Micro Finance |
154.52 |
152.62 |
-0.06% |
2 |
Weaker Sector |
12190 |
11006 |
10.76% |
3 |
SC/ST beneficiaries |
1738 |
1684 |
3.21% |
4 |
Minority Community |
2921 |
3037 |
-3.82% |
5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK
5.1. Credit Flow to Retail Sector
The Bank is providing retail loans for salaried persons, professionals, businessmen and pensioners for purchase of housing properties/ plots, repair/ renovation of house, purchase of consumer durables, two/four wheeler vehicles, education and loan for other personal needs etc. The retail loan portfolio of the bank is Rs.15792.02 Crore.
Amt. in Rs. Crore
SN |
Scheme |
Brief Description |
Portfolio as of Marâ17 |
NPA % |
1 |
Maha Super Housing Loan Scheme |
Housing Sector being the thrust area, Bank has various Housing Loan schemes in place to meet the needs of all economic segments. Bank offers housing loan for âpurchase / construction of new / existing house / flat, repairs / renovation / alteration of existing house / flat, purchase of plot and construction thereonâ |
13595.20 |
2.72 |
2 |
Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme |
Bank has launched scheme for purchase of New four Wheeler i.e. Car, Jeep, Multi Utility vehicles (MUVs), SUV etc. for personal use. (i.e. not for hiring/ferrying passengers) for individuals (18 years and above). |
669.36 |
4.89 |
3 |
Model Education Loan Scheme |
Bank is implementing Model Education Loan Scheme 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 |
891.05 |
5.87 |
4 |
Mahabank Top up Loan Scheme |
In order to extend additional credit support to existing housing loan borrowers as well takeover of existing housing loan of other banks with additional facility of Top-up Loan, Bank has launched âMahabank Top Up loan Schemeâ. Under this scheme credit is extended for repair / renovation / furnishing of house, childrenâs education, Marriage of Children, Medical treatment, buying a vehicle or hi-tech gadgets etc. |
67.72 |
2.00 |
5 |
Mahabank Gold Loan Scheme |
With a view to tap the potential of gold loans as a lucrative asset and to cater 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 launched a retail loan product as âMahabank Gold Loan Schemeâ w.e.f. 26.09.2014. |
96.58 |
2.80 |
6 |
Mahabank Aadhar Loan Scheme |
To cater to the needs of our existing pension account holders in meeting their personal expenses, pilgrimage, medical, domestic needs etc. Bank has re-launched âMahabank Aadhar Loan Schemeâ. |
283.21 |
0.68 |
6.2 Centralized Processing of loans
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 turnaround time.
6.3 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.
5.4 BOM SBI International Credit Card
- The BOM-SBI card base is 50064
- The commission received from SBI Card is Rs. 83.00 Lakhs during the year 2016-17.
5.13 ALTERNATE DELIVERY CHANNELS
5.13.1 INTERNET /SMS/Phone Banking
Bank could achieved an increase of 28% in Internet Banking, 31% in Phone Banking and 33% in SMS banking over the previous year.
With continuous follow up and increase in net security through the Mahasecure for IBN users, substantial rise in users/online transactions is expected.
5.13.2 MOBILE BANKING
- Maha Mobile functionality has been customized and simplified for increasing the enrolments.
- A user manual on Internet Banking & New Maha Mobile functionality is prepared & sent to field staff for ready reference & marketing of the technology based products.
- Bank has introduced an Incentive schemes for Branch staff & Cash Back Offer to customers for Downloading âMaha Mobile Appâ in the month of December 2015
- Maha Mobile App has been increased by 15744 nos. in the month of December 2015.
- Presently, there are 112210 Mobile Banking users.
5.14 Tie Ups
5.14.1 Payment Gateway Services:
- Presently we are providing the facility of Payment Gateway to all our customers through our online aggregators.
- We have made tie up arrangement with following aggregators
Sr |
Particular |
Sr |
Particular |
1 |
M/s Atom Technologies |
7 |
M/s CC Avenues |
2 |
M/s BILL DESK |
8 |
M/s Citrus Payment Solutions Pvt Ltd |
3 |
M/s EBS solutions limited |
9 |
M/s PayTm |
4 |
M/s Ibibo i.e. PAYU |
10 |
M/s Tec process payment Solutions |
5 |
M/s Times of Money Limited |
11 |
M/s SBI e pay |
6 |
M/s Airpay |
12 |
FSS Payment Solutions |
5.14.2 âRemit2indiaâ facility
- âRemit2Indiaâ is a web-based, person to person money transfer system that allows individuals particularly our Non-Resident Depositors to remit foreign currency amount for credit to the Beneficiary account in India.
- Although the income is very less in this product but is facility/Services which we may be useful to attract NRI customers.
6. CORPORATE SOCIAL RESPONSIBILITY
The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune District of Maharashtra have been undertaking various rural developmental activities for the benefit of farmers'' viz. Vermi compost, Re-development of Saline Soils, Soil Testing etc. Bank has established Soil testing lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil Testing Laboratory has analyzed 7007 Soil and Water samples in the year 2016-17 and accordingly counseling is done. Farmers from the districts of Pune, Ahmednagar, Sholapur and Satara are taking benefit of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF) established by the bank, undertakes various projects and village improvement programmes. MARDEF is imparting training to farmers on various subjects in Agriculture. Trust has implemented 94 training programmes for farmers at RDC Bhigwan and Hadapsar and has benefited 3,245 farmers from April 2016 to March, 2017.
The Bank has established Seven Mahabank Self Employment Training Institutes (MSETI) for providing training to rural youth and women to enable them to acquire skills for self-employment through small business enterprises. The Institute has centers located at Pune, Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has so far imparted training to 26801 educated unemployed youths. The settlement rate is 65 per cent.
Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of Maharashtra and National Institute of Bank Management is actively involved in formation, nurturing, training and ensuring linkage of SHGs to Bank Credit.
The Bank has opened Financial Literacy Centers in Six Lead Districts namely Pune, Nasik, Aurangabad, Satara, Jalna and Thane for creating awareness about banking schemes.
7. LEAD BANK SCHEME
7.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of Maharashtra State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane. Every year district credit plans for the districts are prepared and implemented with the cooperation of other banks as well as in coordination with District Collectors of respective Districts.
7.2 State Level Bankersâ Committee
The Bank is the Convenor of State Level bankers'' Committee (SLBC) for the State of Maharashtra and prepares State Annual Credit Plan. The plan for the year 2016-17 was for Rs.1,86,620/-crore which is highest in the country. The same was approved in a special meeting held under the Chairmanship of Honâble Chief Minister of Maharashtra. SLBC also ensures holding of quarterly meetings regularly to oversee the implementation of State Annual Credit Plans, priority sector lending and Govt. sponsored schemes in the State. Apart from regular SLBC meetings, various other meetings are also organized by SLBC to coordinate between various member banks, State Government, Government Agencies, Reserve Bank of India, NABARD and the Central Government. SLBC coordinates a network of more than 15,000 bank branches in the state.
In FY 2016-17, the State suffered due to continual draught in more than 16000 villages and also onslaught of natural calamities, the brunt of which is mostly borne by Agriculture and related activities. SLBC has always been very proactive in such calamities by issuing necessary guidelines in respect of relief measures, organizing special meetings and guiding the members whenever necessary.
As SLBC convener, Bank of Maharashtra coordinated implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A total of 136 lakh accounts were opened in the State and the State was declared as saturated for the purpose of opening of accounts. The process of opening of accounts is continued.
S L B C Maharashtra received award for highest Adhar seeding of PMJDY accounts from Department of Financial Service, MOF New Delhi.
7.3. FINANCIAL INCLUSION / PMJDY:
Scheme |
Particulars |
2014-15 |
2015-16 |
2016-17 |
FI Plan |
No of Transactions by BCA (in lakhs) |
20.80 |
55.27 |
109.75 |
Amt of transactions (in Cr) |
602.08 |
2063.37 |
4702.81 |
|
PMJDY |
No. of PMJDY accounts(in lakhs) |
22.96 |
32.19 |
42.28 |
Of Which Aadhaar Seeded |
11.81 |
24.05 |
33.18 |
|
% OF Aadhaar Seeding |
51.44 |
74.71 |
78.48 |
|
Of Which Mobile Seeding |
10.74 |
23.22 |
32.16 |
|
% of Mobile Seeding |
46.78 |
72.13 |
76.06 |
|
Balance in PMJDY A/c (in Cr) |
209.86 |
531.97 |
932.05 |
|
Average Bal. per account actual |
914 |
1653 |
2205 |
|
Zero Bal. PMJDY A/cs |
13.43 |
13.61 |
16.34 |
|
BSBD Accounts |
Total BSBD Accounts |
53.30 |
61.70 |
71.28 |
O/S Balance in BSBD A/c (in Cr) |
516.50 |
893.57 |
1410.85 |
|
Average bal. per account (actual) |
969 |
1448 |
1979 |
|
Commission Paid towards BC Services (in Crore) |
5.30 |
11.95 |
23.07 |
The Bank has a full-fledged call centre with toll free number 18001022636 for redressal of PMJDY grievances.
The Financial Literacy Material has been prepared in vernacular languages and supplied to all Branches / Bank Mitrs for supplying the same to accountholders during FLC camps.
Financial literacy camps are organized different schools in districts of Maharashtra. All skilling centers /ITI are mapped under financial literacy project
Bank has been awarded for excellent performance in the field of financial inclusion from prestigious institutes like IBA, DFS, and Economic Times.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the Bank, having its Head Office at Aurangabad, Maharashtra State. Total no of branches as on 31.3.2017 stood at 408 in its area of operation covering 17 out of 36 districts of Maharashtra State.
All 408 branches and controlling offices are now under CBS. MGB opened 11 new branches during this year.
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Maharashtra Gramin Bank has crossed the benchmark of Rs.11000 Cr Total Business and Rs.100 Cr Operating Profit by achieving Rs.11899 Cr Total Business and Rs.118.94 Cr Operating Profit as on 31.03.2017 with a YOY growth rate of 30.76%
The percentage of CASA to total deposit is 58.94%.Operating profit of MGB is Rs. 118.94 Crore (growth of 30.75%). During this year 2016-17, MGB has grown by 20.07% in total deposits and 11.32 % in advances.
Under Pradhan Mantri Jandhan Yojana surveys of all allotted 898 SSAs and 80 wards were conducted for identification of households having no bank account. The Bank has covered all allotted SSAs by engaging BCAs. Total 8.54 lakh accounts have been opened during the PMJDY campaign period and âRuPay ATM debit cardsâ have been issued to 7.45 lakh account holders. Maharashtra Gramin Bank has actively 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.
SR NO |
PERFORMANCE PARAMETER |
TARGET FOR THE FY 2016-17 |
ACTUAL AS ON 31.03.2017 |
1 |
Growth in Core Deposit (%) |
10.78 |
20.07 |
2 |
Growth in Advances (%) |
10.27 |
11.32 |
3 |
Recovery % June 2016 |
60.00 |
58.00 |
4 |
NPA Level |
227.34 |
369.37 |
5 |
Growth in Agriculture Advances |
15.63 |
13.76 |
6 |
CD Ratio |
71.21 |
66.33 |
7 |
Increase in No. of SHGs credit linked |
4530 |
|
8 |
Increase in No. of KCC Cards |
- |
233726 |
9 |
Net Profit After Tax |
42.25 |
42.19 |
10 |
Per Branch Profit (Lakh) |
15.97 |
10.34 |
11 |
Per Employee Profit (Lakh) |
4.19 |
2.91 |
8.2 The Maharashtra Executor & Trustee Company Pvt. Ltd.
Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO), the 100% subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide services auxiliary to banking such as:
- Consultation, Drafting & Execution of will
- Consultation, Drafting and Management of Private Trusts / Public Trusts
- Management of investments & house properties as attorney
- Guardianship of minorâs property
- Consultation for sale/purchase of property
- Filing of I-Tax Returns for individuals
The Company is located at Pune having its branch units at Pune, Vashi-Mumbai, Thane and Nagpur. It is managing about 1094 Public & Private Trusts. During the year, additional 27 Wills were added making total 1125 Will in its custody for execution.
At present, the Company manages properties both movable and immovable of 69 clients under the Power of Attorney. The Company also acts as the Trustees in respect of 160 policies under Married Women''s Property Act and as Court appointed Guardian of minor''s property in 6 cases.
The net profit of METCO for F.Y. 2016-17 is Rs.46.92 lakh.
9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY
During the year 2016-17, the Bank has achieved various remarkable achievements in the field of Official Language implementation:
The Town Official Language Implementation Committee, Mumbai has secured Second Prize from the Rajbhasha Vibhag, Ministry of Home Affairs, Government of India for better implementation of Hindi at the hands of Hon. Governor, Rajasthan State in a grand function held at Udaipur. Our Bank is the convener Bank for the committee.
Our Bank was awarded Third Prize by the Mumbai based prestigious Institution âAashirvadâ for better use of Hindi during the year.
31st meeting of the Maharashtra State Level Bankers'' Committee (Rajbhasha) was held under the chairmanship of Shri R. P. Marathe, Managing Director and CEO of the Bank. Bank of Maharashtra is the convenor for this top-level committee. Mr. Nagendra Singh, Director, Ministry of Home Affairs, Government of India, New Delhi was present in the meeting as the Chief Guest. Shri R. K. Gupta, Executive Director of Bank of Maharashtra and Dr. Suneeta Yadav, Deputy Director, Ministry of Home Affairs, Govt. of India were present as special guest on the occasion. Shri Manoj Biswal, General Manager (HRM & Rajbhasha) and Dr. Rajendra Shrivastava, AGM (Rajbhasha) & Member Secretary of the Committee were also present. Top level executives and Hindi officers of all the public sector banks attended the meeting in large numbers. On this occasion Online Rajbhasha Glossary âRajbhasha Koshâ of Bank of Maharashtra was inaugurated at the hands of Shri Nagendra Singh, Chief Guest and Online Hindi Roster of Bank of Maharashtra was inaugurated at the hands of Shri R. P. Marathe, MD & CEO. Rajbhasha Shield and memento were presented to the members for better implementation of Hindi in their offices.
Hindi day function was arranged at Head Office, Pune on 15th September 2016. Shri R. K. Gupta, Executive Director of the Bank presided over the function. Dr. Mohan Agashe, renowned Marathi and Hindi actor and social worker was the Chief Guest. Shri Narender Kabra, General Manager was also present in the function. Winners of the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.
An All India Rajbhasha Seminar was organized in Kolkata for all the Hindi Officers of the Bank. Shri R. P. Marathe, Managing Director & CEO of the Bank inaugurated the seminar. Shri Manoj Biswal, General Manager, HRM & Rajbhasha reviewed the performance and guided all the participants. An All India Inter-Bank Essay Competition was organized by our Bank and the winners of the competition were awarded at the hands of Shri R. P. Marathe, Managing Director & CEO of the Bank during the seminar.
Monthly Rajbhasha E-Magazine âRajbhasha E-Pragati'' is being regularly published every month. As a new initiative Rajbhasha E-Pragati in Brail script is also published for the benefit of differently able employees of the Bank.
Bank of Maharashtra is the convenor Bank for Town Official Language Implementation Committee (TOLIC) in Mumbai, Pune, Solapur, Latur & Jalgaon. Meetings of these committees were held regularly during the year and various activities of the committees were organized throughout the year as per the schedule.
Committee of Parliament on Official Language visited our Aurangabad Zonal Office, Jamnagar branch, Ahmadabad Zone and Chennai Zonal Office during the year and reviewed Official Language Implementation work of the Bank. The honorable members of the Committee expressed their satisfaction regarding progressive use of Hindi and the implementation of new initiatives by the Bank.
An All India Rajbhasha Seminar was organized by Syndicate Bank in Manipal in the Month of January, 2017. Shri Manoj Biswal, General Manager, HRM and Rajbhasha represented our Bank in the seminar and addressed the executives of all the banks.
Our bank was awarded First Prize by Town official Language Implementation Committee, Patna for better use of Hindi during the year. Reserve Bank of India is the convener for this committee.
10. SECURITY
Proactive steps were taken in view of the security requirements at the branches and for Bank''s staff and also for provisioning of physical security infrastructure at all branches. This was done after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of bank robberies, the breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any such eventuality.
11. DIRECTORSâ RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts for the year ended 31.03.2017:
- The applicable accounting standards of the Institute of Chartered Accountants of India, have been followed along with proper explanation relating to material departures, if any;
- The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, are consistently applied and proper disclosures are made for changes, if any;
- Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and the profit of the Bank for the year.
- Proper and sufficient care was taken for maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks, in India; and
- The accounts have been prepared on a going concern basis.
12. CHANGES IN THE BOARD OF DIRECTORS
- During the year 2016-17, the following changes took place in the Board of Directors:
- Shri Ramdev L. Saydiwal, ceased to be the Director of the Bank w.e.f. 20.07.2016.
- Shri Deendayal Agrawal was appointed as Director by the Central Government w.e.f. 26.07.2016.
- Shri Sanjeev Jain, ceased to be the Director of the Bank w.e.f. 18.08.2016.
- Shri Ravindra Prabhakar Marathe, was appointed as MD & CEO of Bank of Maharashtra by the Central Government w.e.f. 26.09.2016.
- Shri Sushil Muhnot, ceased to be the CMD of the Bank w.e.f. 26.09.2016.
- Shri R. Athmaram ceased to be the Executive Director of the Bank by the Central Government w.e.f. 31.10.2016.
- Shri Alekh C. Rout was appointed as Executive Director of the Bank by the Central Government w.e.f. 31.03.2017.
13. BUSINESS RESPONSIBILITY REPORT
As per the SEBI(Listing Obligation sand Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2016-17 of the Bank has been hosted on the Bank''s website i.e www.bankofmaharashtra.in. Any member interested in obtaining a physical copy of same may write to the Company Secretary of the Bank.
14. ACKNOWLEDGEMENTS
The Board of Directors wishes to express sincere gratitude to the Government of India, the Reserve Bank of India, the Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Indian Banksâ Association and Stock Exchanges and CDSL for their valuable advice and support; to the customers and shareholders for their patronage; to the correspondents and associates for their cooperation and to all the members of staff of âMahabank Familyâ for their unstinted commitment and contribution to the overall development of the Bank.
For and on behalf of the Board of Directors
Place : Pune (R.P. Marathe)
Date : 4 May, 2017 Managing Director and CEO
Mar 31, 2016
The 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, 2016.
2.12 Non Interest Income
2.13 Income, Expenditure and profitability
The total income of the Bank grew from Rs. 13671.42 crore in FY 2014-15
to Rs.14072.29 crore in FY 2015-16 (growth of 2.93%)
The detailed income/expenditure components are asunder:
(Rs. in crore)
Particulars 2015-16 2014-15 Variation
(per cent)
Interest / discount on 9934.83 9820.78 1.16
advances / bills
Income on investments 2735.20 2539.53 7.71
Interest on interbank lending 382.95 305.13 25.5
and other Interest
Total interest income 13052.98 12665.44 3.06
Non-interest income 1019.29 1005.98 1.32
Total Income 14072.27 13671.42 2.93
Interest on deposits 8421.88 8084.74 4.17
Interest on borrowings 54.88 79.92 -31.33
Other interest expenditure 697.52 625.74 11.47
Staff expenses 1540.98 1633.21 -5.65
Other operating expenses 1011.83 892.72 13.34
Total Non-interest expenses 2552.81 2525.93 1.06
Total Operating Expenses 11727.09 11316.33 3.63
Operating profit 2345.18 2355.09 -0.42
Provisions and 2244.49 1904.40 17.86
Contingencies
Net profit 100.69 450.69 -77.66
2.14 Financial Ratios
Particulars 2015-16 2014-15
EPS (Rs.) 0.91 4.50
Cost to Income Ratio (percent) 52.12 51.75
Return on assets (percent) 0.07 0.33
Return on equity (per cent) 1.24 6.68
Book value per share (Rs.) 63.36 65.61
profit per Branch ( Rs. in lakh) 5.31 23.97
profit per employee ( Rs. in lakh) 0.73 3.18
Business per Branch ( Rs. in crore) 132.05 118.79
Business per employee ( Rs. in crore) 18.18 15.74
Interest income as per cent to Average 8.71 9.21
working funds
Non Interest income as per cent to 0.68 0.73
average working funds
Net Interest Margin (per cent) 2.59 2.82
Operating profit as per cent to average 1.56 1.71
working Funds
Staff expenses as a percent to average 1.03 1.19
working funds
Dividend (per cent) 0 8.00
Net worth (Rs. Crore) 7403.05 6975.77
CRAR (%) (Basel II) 11.20 11.94
Of which, Tier I CRAR (%) (Basel II) 9.02 8.76
2.15 Capital from Government of India
The Bank issued 10,51,50,787 equity shares amounting to Rs. 394.00
crore (including share premium) to GoI on preferential allotment basis.
Consequent upon the capital raised during the year, as above, the share
holding of GOI in equity share capital stood at 81.61%
2.16 Networth
The Bank''s Net worth increased from Rs.6975.77 crore as on 31.03.2015
to Rs.7403.05 crore as on 31.03.2016.
2.17 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 11.20% as on 31.03.2016, against
the minimum of 9.63 %( Including CCB) prescribed by RBI in terms of
Basel III norms. The Common Equity Tier 1 Ratio stood at 9.02%.
2.18 Dividend
The Board of Directors of the Bank has not recommended any dividend for
the Financial year 2015-16.
3 .1 Branch Expansion
During the year, the Bank opened 15 new branches. As on 31.03.2016, the
total branch network comprised of 1895 branches spread over 30 states
and 4 union territories. The branch network includes specialized
branches in the area of foreign exchange, Government business, Treasury
and International Banking, Industrial Finance, Small Scale Industry and
Hi-tech agriculture, Pension Payment, Self Help Groups etc.
Area wise classification of branches as on 31.03.2016 is given in the
table below:
Sr. Classification As on As on
No. 31.03.2015 31.03.2016
1 Rural 657 658
2 Semi-Urban 433 434
3 Urban 364 366
4 Metro 426 437
1880 # 1895
# 36 Branches like Service /Retail Asset/Recovery Br''s are converted as
a "Back Office" as per RBI Guidelines on 01.06.2014.
3.2 Human Resources Management
The Bank has put in place a comprehensive HRM Policy that provides the
road map for acquiring appropriate & need based human resources, its
development through training, job enrichment, reward and recognition
for better performance, career progression, welfare and retention.
During the year the Bank recruited 351 Probationary Officers, 113 Agril.
Field Officers, 10 Rajbhasha Adhikari, 14 Law Officers, 1 Company
Secretary & 34 Chartered Accountants in Officer Cadre and 61 Clerks & 36
Armed Guards were also recruited.
During the year, 1044 employees ceased to be in service on account of
retirement, VRS, resignation, termination and death.
Inter scale promotions of officers were carried out during 2015- 16.
Following number of candidates were promoted.
JMGS-I MMGS-II MMGS- SMGS- SMGS-V SMGS-
TO to MMGS III TO IV TO TO VI TO
MMGS-II III SMGS-IV SMGS-V SMGS-VI TEGS-VII
196 485 166 39 20 4
During the year 2015-16, 106 Substaff were promoted to Clerical cadre
and 300 Clerks were promoted to Officer Cadre.
To recognize outstanding performance in Banking activities and to
motivate others to perform better, various schemes like Performance
Linked incentives to all staff of Best Performing Branches etc. are in
vogue.
The top three branches in disbursement and recovery of advances to
SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr.
Babasaheb Ambedkar.
The Bank has been allocating up to 3 per cent of its net profit towards
various schemes for the welfare of staff including retired staff. The
welfare schemes are administered by a Central Welfare Committee
consisting of management & employees representatives.
The Bank has healthy industrial relations.
The Bank has been complying with the reservation policy of Govt. of
India. Special Cells at Head Office and all Zonal Offices are functioning
to monitor the implementation of the reservation policies and to
redress grievances of SC/ST/OBC & Physically challenged employees as
well as ex-servicemen. The Bank has designated Chief Liaison Officers
at Head Office and has set up SC/ST Cells at all Zonal Offices. During
the year periodical meetings were held with SC/ST/OBC Employees
Association to discuss implementation of reservation policy and other
constitutional safe guards and also to facilitate involvement in
business growth.
The number of employees belonging to different categories is as under:
S
No Category of Employees No. of Percentage
Employees to total
1. Women 3739 27.16
2. Physically Challenged 184 1.34
3. SC Employees 2563 18.62
4. ST Employees 1082 7.86
5. OBC Employees 2116 15.37
6. General Employees 8004 58.15
TOTAL employees 13765
working in the Bank
Rosters have been maintained as per Government guidelines and are
regularly inspected/ checked.
Compassionate Appointments - A Scheme for ''Compassionate Appointments''/
Payment of Ex-gratia lumpsum 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 Contributory Group Insurance Mediclaim Policy for all employees
including retired employees, has been renewed w.e.f. 1.4.2016 and the
Sum insured is increased upto Rs.10.00 Lacs for existing employees.
The reimbursement of examination fees & payment of cash incentive /
Honorarium in respect of courses from Indian Institute of Banking &
Finance, MBA from reputed Institutions & CFA has been widened by adding
fve more courses in the list of courses for reimbursement of fees
thereby making total 22 courses eligible for reimbursement of
examination fees.
A policy for granting special leave and 100% reimbursement of
hospitalization expenses to officers when he meets with an accident /
injury while on duty is in place.
Policy for ''granting incentives, to officers posted & transferred in
North eastern zones from other zones''framed as per the directives of
Government of India.
Training Activities:
The Bank has a training system which facilitates attention to regular
periodic assessment of skill gaps at various levels in relation to
existing and emerging business opportunities. Skill building in credit,
Forex, customer relationship management, marketing of products and
services, credit monitoring and recovery, risk management, technology
based banking, branch management, complying with statutory, legal and
policy requirements and preventive vigilance received special attention
during the year.
Training programmes were also held on thrust areas like financing SMEs,
retail lending, agriculture finance, soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 1.4.2015 to
31.03.2016 are as under-
Cadre No. of Prog Training Employees
Days Trained
Offcers 129 547 4030
Clerks 64 208 1248
S/staff 37 74 692
Total 230 829 5970
3.3 Technology Initiatives
The Year 2014-2015 was a milestone year for the Bank as far as
technology implementation & up-scaling was concerned. The Year
2015-2016 is being observed as "Stabilization Year"/"Technology
Augmentation Year" for the various initiatives undertaken during the
Year 2014-2015, in addition to new initiatives that have been taken up
for implementation during the Year 2015-2016 and enumerated as under:
1. CBS Hardware Augmentation Project covering DC & DR was undertaken &
successfully completed during the year to take care of increasing
transactions load and to ensure smooth functioning of CBS system at
field level.
2. E-Gadgets implemented in a big way during the year with
commissioning of Self Update Pass Book Printers, Queue Management
Solution & Bunch Note Acceptor Machines at various locations across the
Bank. The same will be continued during next financial year to ensure
fulfillment of customer requirements/satisfaction.
3. Latest ISO 27001:2013 Certification secured by the Bank for its four
IT Divisions, thereby continuing the Quality ISMS (Information Security
Management System) in our Bank.
4. ''Maha Mobile''New Gen Mobile Banking Application which was launched
in January 2015 got stabilized during the year and was well received by
our customers. As on 31/03/2016, 112210 users are registered for this
facility.
5. ''Mahasecure''a Two Factor Authentication (2FA) Solution for Retail
Users & active Corporate Users has been implemented as a part of the
effort to respond to the ever evolving information security trends and
the responsibility to enhance security features in the Internet Banking
facility. One Time Password (OTP) for Fund Transfer is also implemented
under Mahasecure Application. No phishing attacks have been reported
after the implementation of this product.
6. IMPS-P2A (Immediate Payment System - Person to Account) & IMPS-P2P
(Immediate Payment System - Person to Person) Fund Transfer facility
made available under Internet Banking from 12/06/2015 & 23/12/2015
respectively. Using this facility, customers can do inter- bank as well
as intra-bank (24 x 7) fund transfer upto Rs.5,000/- in a day.
Bank''s Own EFT Switch which was implemented Live from 08/05/2014, got
fully stabilized during the year. As a result of the implementation of
own EFT Switch, Bank is deriving significant advantages like reduced
turn-around- time to introduce new ATM Product, Better customer
experience, Reduced risk, Instant Hot-listing of a card through
multiple channels, Value Added Services etc.
Bank has collaborated with VISA for International Debit Cards and with
NPCI for Rupay Debit Cards. Bank has commenced issue of Rupay Platinum
Cards from 28/03/2016. As on 31/03/2016, the total card base of the
Bank stood at 57.19 Lakhs.
Various facilities are being provided through our Internet Banking
platform for facilitating online payment of taxes, utility bill
payments, online shopping / e-commerce, railway reservation, LIC
premium payment, e-SBTR etc and facility for viewing tax credit
statement 26AS and Demat account with the Bank.
Bank has robust Information Security Management System (ISMS) framework
in place. Its information security policy statement being: "Bank of
Maharashtra is committed to protect and safeguard the critical
information of all stakeholders in order to ensure secure business
operations". Bank has also implemented major security initiatives
recommended by Gopalakrishna Committee for internal and external
customers.
Bank has in place a captive Security Operations Centre (SOC) for
monitoring Critical IT Infrastructure on 24 x 7 basis. The SOC shall
enable the Bank to effectively address security threats by constant,
proactive monitoring of security events and meet the compliance
requirements. This has enabled the Bank to automate the vulnerability
discovery process by constantly analyzing the logs generated by the
core IT security and application infrastructure. The other services
namely Anti- Phishing & Anti-Trojan services are also implemented.
Bank is handling the e-Payments of State Government Taxes of
Maharashtra, Karnataka, Tamil Nadu, Madhya Pradesh & Rajasthan States.
Inward Clearing in Mumbai, Pune & Ahmedabad Centers is already
outsourced. Now, we have started Outsourcing of Outward Clearing in
Nagpur. On stabilization, it shall be extended further to Pune & Mumbai
Centers, so as to move towards the goal of Centralized Clearing in
future.
Bank has implemented Scientific Transfer Pricing Mechanism / Fund
Transfer Pricing during the year.
In Year 2016-2017, Bank proposes to take up / implement the following
IT Initiatives -
1. Risk Based Internal Audit Software.
2. e-TDS Software.
3. Unified Payments Interface (UPI) of NPCI.
4. Bharat Bill Payment System (BBPS) of NPCI.
5. Risk Based Supervision (RBS)
6. International Financial Reporting Standards (IFRS).
7. Rupay Platinum Cards.
3.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service to ensure
customer satisfaction throughout the year by implementing all major
recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and
Damodaran Committee.
As a member of Banking Codes and Standards Board of India (BCSBI), Bank
has adopted Code of Bank''s Commitment to Customer and Bank''s Code of
Commitment to MSMEs.
Bank has printed folder called as "My Folder" containing all customer
service policies, information on service charges, guidelines on
Government Schematic Loans, Ombudsman and BCSBI Codes. The same is
printed in Marathi, Hindi and English and supplied to all branches and
Zones for making the same available to all customers on demand.
Duly documented policies approved by the Board, on "Deposits",
"Collection of Cheques", "Redressal of Grievances", "Compensation" ,
"Operational Procedure for Settlement of Claims of Deceased Depositors"
and Customer Rights Policy are in place.
Customer Service Committees are formed at all branches and their
meetings are conducted regularly on monthly basis. The Standing
Committee on Customer Service at Head Office and Zonal Level Customer
Service Committees at Zones, meet regularly to address and review
various customer related matters and to take steps, for an improvement,
on an ongoing basis.
The Committee of the Board on Customer Service meets on quarterly basis
to monitor the quality of the customer service, redressal of customer
grievances and to ensure customers satisfaction.
Full-fedged grievances redressal machinery is in place to respond
promptly to customer grievances. The Bank has started internet based
mechanism, Standardized Public Grievances Redressal System (SPGRS) for
lodging the complaints or to give suggestions / feedback on services by
the customers and for providing acknowledgement and status of their
feedback / complaints as per the directions of Government of India.
Kiosk Machine has been installed at Head Office to enable the customer
to register online complaints / suggestions and is in operation since
14.03.2013.
3.5 KYC/ AML
Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards
/ Combating of Financing of Terrorism (CFT) and Obligation of Bank
under Prevention of Money Laundering Act (PMLA) 2002.
The Bank has Board approved KYC-AML-CFT Policy in place. The said
Policy is the foundation on which the Banks implementation of KYC
norms, AML standards and CFT measures is based. The full KYC compliance
entails staff education as well as customer education for which the
following measures are taken by the Bank.
A comprehensive list of KYC documents is uploaded on the Banks web site
for the benefit of customers. Regular training sessions are conducted on
KYC-AML-CFT guidelines at the Banks training establishments to
sensitize the employees.
3.6 Risk Management
Bank has its Risk Management Framework in accordance with RBI
Guidelines and it benchmarks itself against industry best practices.
This enables it to identify measure, monitor and manage risk
efficiently.
It has put in place Risk Management Policies and Strategies and
establishes control systems in line with Bank''s aggregate Risk
Appetite. Bank has constituted Risk Management Committee at Board level
to monitor risk at Bank level. Bank has also constituted sub-committees
known as Credit Risk Management Committee (CRMC), Market Risk
Management Committee (MRMC), Operational Risk Management Committee
(ORMC) and Asset Liability Management Committee (ALCO) to monitor
specific risk areas. These Committees are headed by Chairman and
Managing Director. Executive Directors and General Managers are
members of the Committees.
As per RBI guidelines on disclosure requirements under Basel III
Capital Regulations, Bank has published Disclosures on quarterly and
half yearly basis and put them on the Bank''s website.
3.7 Inspection & Audit:
The Inspection and Audit system and various measures of internal
control are adopted by the Bank to ensure identification /assessment and
mitigations of various risks.
Internal Audit of branches
As per Seth Committee guidelines the Bank is conducting Risk Based
Internal Audit of branches. RBIA of 1139 Branches which were due for
Audit during the year including Top 142 Branches in terms of Business,
were conducted.
The Bank has implemented Off-site monitoring system since 2015 to
strengthen the internal control system in which reports on some
important/ sensitive areas are extracted from the CBS system on
daily/weekly/monthly basis so as to guide the branches to take timely
action for rectification.
The Bank proposes to procure and implement web based integrated audit
software for conducting various types of audits.
Surprise/Snap Inspection:-
Surprise/Snap Inspection of 12 branches were undertaken during the
year, focusing mainly on high risk areas in pursuance of Ghosh
Committee Recommendations.
Concurrent Audit:-
As per approved Audit Plan for 2015-2016, 498 branches and two
departments of the Bank are covered under Concurrent Audit. Bank''s
75.78% total business is covered under concurrent Audit.
Income and Expenditure Audit (I.and E. Audit)
Income & Expenditure audit was carried out at 263 branches as per
approved plan for the period 01.10.2014 to 30.09.2015 having total
business above Rs. 25.00 crore and advances above Rs.5.00 crore.
Expenses Audit of Zonal Office : -
In order to have control over expenditure at Zonal offices a system has
been put in place through half yearly Expenses Audit. The Audit is
conducted once in half year i.e. March and September. The expenses
audit of 33 Zones was conducted as of 30.09.15.
Management audit:
For assessing the effectiveness of Zonal Offices and HO Departments in
terms of supervision, control, profitability and growth in business,
Management Audit of 22 Zonal offices and 17 Departments at Head Office is
carried out during the year 2015-16.
RBI Inspection under Section 35 of the Banking regulation Act:-
The Bank is subject to RBI inspection under Sec.35 of the Banking
Regulation Act during the year. Besides that 1 branch was also
inspected by RBI during the year.
AML:
IBA has advised the Banks to implement 88 parameters so far for
generation of AML alerts. Bank has implemented 43 parameters out of 49
parameters as per IBA guidelines and the remaining 6 parameters are
related to 3rd party products. In addition to these the FEX
centers/branches have been sensitized on the guidelines on Trade Based
Money Laundering issued by FIU-IND to prevent fraud/money laundering.
3.8 Vigilance:
As per Central Vigilance Commission (CVC) guidelines, the Bank has
adopted Integrity Pact & appointed Independent External Monitors
(IEMs), for independent review of compliance of obligations by the
parties under Integrity Pact. This system will ensure transparency,
equity & competitiveness in large value procurements.
To enlighten the participants on preventive vigilance aspects, a
session on preventive vigilance is included in every training
programme. During the accounting year 88 sessions on preventive
vigilance were conducted by vigilance department, where in 2325
employees from different cadres participated.
As a part of preventive vigilance exercise Zones are undertaking
vigilance inspection of Branches, which has helped in detecting the
fraud.
3.9 Compliance:
The Bank has put in place a Compliance Policy, based on the guidelines
of Reserve Bank of India. The Compliance Department is having a Chief
Compliance Officer who monitors the compliance functions. It ensures the
implementation of the statutory / regulatory guidelines coming into
force from time to time. The issues relating to regulatory / statutory
compliances are addressed appropriately. Submission of various
regulatory returns is also monitored.
3.10 Marketing & Publicity:
With a view to publicize Bank''s various products and also brand image
coupled with Corporate Social Responsibilities, Bank has sponsored
various programs like "sponsorship to Sharda Shakti, Pune for
organizing Seminar on "Women Health Challenges and Solution" in Pune,
Sponsorship to Nasik Kumbh Mela, Sponsorship to TERRE Policy centre for
organizing Green Olympiad, Sponsorship to 14th Pune International Film
Festival, Donations to National Sports Development Fund (NSDF), Old Age
Home Chennai during Chennai Flood, Rotary Club Nigdi for the
construction of water Tank in Nigade Village, Balewadi Stadium for
providing "7 Water Coolers, "Shrutakevali Education Trust" for Bahubali
Children''s Hospital, Shravanabelagola, Karnataka, Donation to Prakrit
Bharati Academy Publishing 10 books on Indian Culture, Religions.
3.11 Citizen''s Charter:
The Bank has adopted the Charter since 2000Â01, which details the
duties and responsibilities of the Bank towards its customers. The
charter is displayed at all the branches and Bank''s website. The Bank
has also adopted a citizen''s charter of RBI on exchange of notes and
coins.
4. SOCIAL BANKING
4.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable
and sustainable economic development by timely and hassle-free
availability of credit for productive purposes to Small and Marginal
Farmers, Micro and Small Enterprises, Retail Traders, Professional and
Self Employed, Women Entrepreneurs and entrepreneurs from economically
weaker sections.
The outstanding advances under Priority Sector as of 31st March 2016,
aggregates to Rs. 41,485 Crore constituting 39.82% of the Adjusted Net
Bank Credit (ANBC). (Growth of Rs. 2,391 Crore, 6.12% over last year).
4.2 Agriculture
The Bank disbursed Rs.8179 Crore for agriculture and allied activities
during the year 2015-16. The total outstanding advances to agriculture
sector reached a level of Rs.17174 Crore as on 31.03.2016 (growth of
10.65 per cent). Bank focused on growth of investment credit under
Agriculture during the year 2015-16 and disbursed Rs.1648 Crore. Bank
also entered into strategic tie-up arrangements with Tractor
Manufacturers and Micro Irrigation Companies for promoting farm
mechanization and micro irrigation activities during the year. Tie up
arrangement is also made with three Collateral Manager to capture
market for expanding loan against ware house receipts.
The Bank undertook awareness/sensitization programmes for all the
branches for increasing advances to agriculture by providing hassle
free credit to farmers.
4.2.1 Mahabank Kisan Credit Card (MKCC)
This scheme has gained popularity especially in rural areas where it is
being propagated successfully and vigorously. The Bank has issued total
5,72,221 Kisan Credit Cards to farmers. Credit flow to MKCC
beneficiaries has reached to the level of 6691 Crore as on 31.03.2016
(growth of 19.70 %).
4.3 Micro, Small and Medium Enterprises (MSME)
SMEs are recognized as a major growth engine for the Indian economy.
They generate opportunities for direct and indirect employment by
facilitating use of natural resources and local skills to stem the tide
of migration to urban areas and promote low investment enterprises.
Finance is made available to viable enterprises at an attractive and
low rate of interest. On line enquiry portal is made available on the
Bank''s website.
Our Bank has adopted Simplified Loan Application for MSMEs for loans up
to Rs. 1.00 Crore and the same is displayed on the Bank''s website. The
Bank has also adopted Bank''s Code of Commitment to Micro and Small
Enterprise and the same is displayed on the Bank''s website.
The Bank''s lending to Micro, Small and Medium Enterprises (Priority
NP) which was at the level of Rs.20,657 Crore as at 31.03.2015,
increased to Rs.22,334 Crore as at 31.03.2016. Advances to Micro
enterprises under priority are 7.79 % of ANBC against RBI target of
7.00 % for March 2016.
For promoting fnance under this category, Bank has entered into
strategic tie up arrangements with Truck / Vehicle / Tractor /
Passenger car manufacturers. Bank has also entered into a MOU with
Bharatiya Yuva Shakti Trust and de-Asra foundation for Credit
facilitation and hand holding of the Micro entrepreneurs especially
under Women and SC/ST categories.
Centralized Processing Cell set up last year at all Zonal Offices for
speedy disposal of MSME proposals has been streamlined.
Bank has launched a new product namely "Mahabank MSME Credit " for
financing to MSME borrowers during the FY 2015- 16 in addition to fve
products introduced last year.
4.3.1 MUDRA: With the introduction of Pradhan Mantri MUDRA Yojana
(PMMY) which mainly consists of non-farm enterprises in manufacturing,
trading and services whose credit needs are below Rs. 10.00 lakh. Bank
is giving special attention to this segment. Loans given to this
segment for income generation are known as MUDRA loans under Pradhan
Mantri MUDRA Yojana (PMMY) and branded accordingly.
Bank has disbursed Rs.1290.00 Crore under PMMY against the target of
Rs.1155.00 Crore as on 31.03.2016. Bank achieved 111.69% of target
allotted by Government under PMMY.
Bank has launched MUDRA Card on 16.9.2015. MUDRA Card issued as a Rupay
Debit Card which is hassle free flexible credit product that meets
working capital needs of Micro & Small Entrepreneurs and cash can be
withdrawn from any ATM or purchase from Merchandise using POS machine.
Bank has issued 7537 MUDRA Cards as on 31.3.2016
4.3.2 Coverage under CGTMSE Scheme
Under Credit Guarantee Fund Scheme for Micro, Small and Medium
Enterprises of Government of India credit facilities up to Rs.100.00
lakh are covered, wherein no collateral security and third party
guarantee are insisted by the Bank. For the accounts covered under this
scheme, Bank is bearing 50% annual guarantee fee for loans above
Rs.10.00 lakh and annual guarantee fee for loans below Rs.10.00 lakh is
borne by borrower. The Bank has sanctioned loans of Rs.2,005.54 Crore
to 21,287 borrowers under this scheme up to March 2016. During the
current FY, coverage under Credit Guarantee Fund Scheme has increased
by 11.10%.
5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK
5.1. Credit Flow to Retail Sector
The Bank is providing retail loans for salaried persons, professionals,
businessmen and pensioners for purchase of housing properties/ plots,
repair/ renovation of house, purchase of consumer durables, two/four
wheeler vehicles, education and loan for other personal needs etc. The
retail loan portfolio of the bank is Rs.12567.96 Crore.
5.2. Mahabank Gold Loan Scheme
Gold ornaments are the traditional and inherited form of savings among
the people in India. Being one of the most liquid and precious asset,
it serves as a dependable and acceptable form of security to raise
loans for meeting immediate financial needs for business, agricultural,
consumption purposes such as marriage, medical, educational expenses
etc. People borrow money by pledging Gold Ornaments at very high rate
of interest. To tap the potential of gold loans as a lucrative asset
and to meet the credit requirement of our customers. With a view to
meet the credit requirement of our customers, Bank has launched a new
retail loan product "Mahabank Gold Loan Scheme" w.e.f. 26.09.2014. The
total portfolio of Gold Loan of our Bank as on 31.03.2016 is Rs. 31.86
Crore.
5.3. Housing loan to public
The Bank has in place Housing Loan Scheme to meet the needs of all
economic segments including NRIs. Financing housing sector in rural and
urban parts of India is a thrust area. The housing loan portfolio of
Bank is Rs. 10550.79 Crore as on 31.03.2016, which constitutes 83.94%
of total retail portfolio of the Bank. The housing loan schemes of the
Bank were revisited and revised schemes were launched like "purchase /
construction of new / existing house / fat, repairs / renovation /
alteration of existing house / fat, purchase of plot and construction
thereon". The Bank has also launched "Maha Combo Loan Scheme" for
purchase of house and a car taken together.
5.3.2 Mahabank Top-Up Loan Scheme
In order to extend additional credit support to our standard housing
loan borrowers, Bank has launched "Mahabank Top Up loan Scheme" w.e.f.
26.02.2016. Under this scheme credit is extended for repair /
renovation / furnishing of house, children''s education, Marriage of
Children, Medical treatment, buying a vehicle or hi-tech gadgets etc.
5.4. Model Educational Loan scheme
With the objective of ensuring that all deserving students get
opportunity to pursue higher education, the Bank implemented a Model
Educational Loan Scheme as per IBA guidelines. As of March 2016, the
Bank had lent Rs. 804.12 Crore to 30554 students. The Bank has provided
the facility of submission of application for education loan through
web-access (on line) also. Bank has also introduced a new feature
called "Pre Approved Education Loan", to its "Model Education Loan
Scheme" to address the requirement of multiple sanction letters
required by students applying for study at foreign universities. Bank
also has "Model Education Loan Scheme for as Skill Loan, where loans
can be sanctioned for completion of short duration job oriented skill
development programmes. A loan up to Rs.1.50 lakh can be sanctioned
under the scheme.
5.5. Centralized Processing of loans
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 turnaround time.
5.6. Micro Finance
The Bank has always recognized the importance of credit to rural and
urban poor for taking economic activity. The SHGs have proved to be
effective instruments for empowerment of women Bank has specialized SHG
branches in all six lead districts and at Goregaon, Mumbai.
As on 31.03.2016, there were 139194 SHGs formed by the Bank, out of
which 107286 SHGs have been linked with the bank credit with
outstanding of Rs.154.62 Crore as on 31st March 2016.
5.7. Assistance to SC/ST beneficiaries:
The Bank has been actively extending finance to SC/ST beneficiaries
through various schemes. Total finance as on 31.03.2016 to SC/ST
beneficiaries stood at Rs. 1728.34 Crore, constituting 15.73 per cent of
advances to weaker sections.
5.8. Weaker Sector Advances:
Bank is providing credit facilities to small / marginal farmers, share
cropper, landless labor, SC /ST Beneficiaries, Self Help Groups, Joint
Liability Groups, The total portfolio of weaker Sector advance of our
Bank as on 31.03.2016 stood at Rs. 10,985 Crore constituting 10.55% of
ANBC.
5.9. Advances to Minority Community
A special cell has been set up at Head Offce to review and ensure
smooth flow of Credit to minority community. The branches were identified
in minority concentrated districts and special targets were allotted to
these branches for lending to minority communities. As of March 2016,
advances to Minority community are at Rs. 3037.22 crore as against
Rs.3264.25 Crore of previous year.
5.10 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.
5.11 BOM SBI International Credit Card
- The BOM-SBI card base is 45347 out of which 23542 cards are used and
monthly spend is approximately Rs. 12.00 Cr.
- The commission received from SBI Card is Rs. 66.00 Lakhs during the
year 2015-16.
5.13 ALTERNATE DELIVERY CHANNELS
5.13.1 ATMs
- ATM site wise feasibility/viability study before relocation was
advised and also to achieve more than 100 average daily hits per ATM.
- Continuous follow up for relocation of Low hit Lobby ATMs (Total 405)
has been made and relocation of 335 lobby ATMs is done by 31.03.2016 Of
the remaining 70 ATMs relocations follow up is being made for early
completion.
- Relocation of Onsite ATMs is geared up by empowering Zonal Offces by
giving specifc guidelines and numbers of relocations
- Zonal managers are empowered with necessary inputs to decide and
shift low hit ATMs to suitable/viable locations. Analyzing the reasons
for high number of hits on other bank ATM locations (Remote on us)
advised zones to survey the area and relocate the low hit ATMs within
the zone, additionally, Even if we have ATM in the vicinity.
- ATMs are being branded with display of our products / services at
prominent places like Malls, Marketing & Publicity point of view. Few
such ATMs are being installed in the leading malls of Pune. Two ATMs
with branding are made operational in two leading malls in the city of
Pune.
- 100% relocation of low hit lobby ATMs is completed in Twelve (12)
Zones viz. Aurangabad, Delhi, Goa, Jalgaon, Indore, Jaipur, Solapur,
Latur, MCZ, PCZ, Satara & PEZ. Remaining Zones are followed up on
daily basis.
5.13.2 INTERNET /SMS/Phone Banking
Bank could achieve an increase of 28% in Internet Banking, 31% in Phone
Banking and 33% in SMS banking over the previous year.
With continuous follow up and increase in net security through the
Mahasecure for IBN users, substantial rise in users/online transactions
is expected.
5.13.3 MOBILE BANKING
- Maha Mobile functionality has been customized and simplified for
increasing the enrolments.
- A user manual on Internet Banking & New Maha Mobile functionality is
prepared & sent to field staff for ready reference & marketing of the
technology based products.
- Bank has introduced a Incentive schemes for Branch staff & Cash Back
Offer to customers for Downloading "Maha Mobile App" in the month of
December 2015
- Maha Mobile App has been increased by 15744 nos. in the month of
December 2015.
- Presently, there are 112210 Mobile Banking users.
5.14 Tie Ups
5.14.1 Payment Gateway Services:
- Presently we are providing the facility of Payment Gateway to all our
customers through our online aggregators.
- We have made tie up arrangement with following aggregators.
Sr Particular Sr Particular
1 M/s Atom 7 M/s CC Avenues Technologies
2 M/s BILL DESK 8 M/s Citrus Payment
Solutions Pvt Ltd
3 M/s EBS solutions 9 M/s PayTm limited
4 M/s Ibibo i.e. PAYU 10 M/s Techprocess payment
Solutions
5 M/s Times of Money 11 M/s SBI e pay Limited
6 M/s Airpay 12 FSS Payment Solutions
5.14.2 ''Remit2india''facility
- "Remit2India" is a web-based, person to person money transfer system
that allows individuals particularly our Non-Resident Depositors to
remit foreign currency amount for credit to the Beneficiary account in
India.
- Although the income is very less in this product but this
facility/Services which we may be useful to attract NRI customers.
5.14.3 ECS Mandate and Direct Debit System
- Bank has a tie up with M/s Bajaj Finance Limited (Auto Finance) for
Centralized ECS mandate verification & centralized direct debit system
where in bank is receiving commission of Rs.50,000/- per month for
mandate verification & centralized direct debit.
- Similarly, Bank has also a tie up with M/s Bajaj Finance Limited
(Consumer Finance) & TVS at Banglore.
5.14.4 Online Fee Collection
- We have an arrangement in CBS for online fee Collection of different
institutes; Organizations etc. wherein Bank will be receiving the
commission.
- We have already started IBPS (Indian Banking Personal Selection)
online fee collection, over the counter fee collection for Amravati
collectorate etc.
5.14.5 Online Trading
- Bank has introduced Three Brokers under our Online Share Trading
facility. i.e. M/s Religare Securities Limited, M/s Reliance Securities
Ltd. & M/s Ventura Securities Limited for Online Share Trading.
- Zones have been advised to open the maximum trading accounts.
6. CORPORATE SOCIAL RESPONSIBILITY
The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune
District of Maharashtra have been undertaking various rural
developmental activities for the benefit of farmers''viz. Vermi compost,
Re-development of Saline Soils, Soil Testing etc. Bank has established
Soil testing lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil
Testing Laboratory has analyzed 7418 Soil and Water samples in the year
2015-16 and accordingly counseling is done. Farmers from the districts
of Pune, Ahmednagar, Solapur and Satara are taking beneft of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development
Foundation (MARDEF) established by the bank, undertakes various
projects and village improvement programmes. MARDEF is imparting
training to farmers on various subjects in Agriculture. Trust has
implemented 94 training programmes for farmers at RDC Bhigwan and
Hadapsar and has benefited 2,363 farmers from April 2015 to March, 2016.
The Bank has established Seven Mahabank Self Employment Training
Institutes (MSETI) for providing training to rural youth and women to
enable them to acquire skills for self-employment through small
business enterprises. The Institute has centers located at Pune,
Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has
so far imparted training to 21386 educated unemployed youths. The
settlement rate is 56.00%.
Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of
Maharashtra and National Institute of Bank Management is actively
involved in formation, nurturing, training and ensuring linkage of SHGs
to Bank Credit.
The Bank has opened Financial Literacy Centers in Six Lead Districts
namely Pune, Nasik, Aurangabad, Satara, Jalna and Thane for creating
awareness about banking schemes.
7. LEAD BANK SCHEME
7.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of Maharashtra
State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane.
Every year district credit plans for the districts are prepared and
implemented with the cooperation of other banks as well as in
coordination with District Collectors of respective Districts.
7.2 State Level Bankers''Committee
The Bank is the Convenor of State Level bankers''Committee (SLBC) for
the State of Maharashtra and prepares State Annual Credit Plan. The
plan for the year 2015-16 was for Rs. 1,86,620 /- crore which is
highest in the country. The same was approved in a special meeting held
under the Chairmanship of Hon''ble Chief Minister of Maharashtra. SLBC
also ensures holding of quarterly meetings regularly to oversee the
implementation of State Annual Credit Plans, priority sector lending
and Govt. sponsored schemes in the State. Apart from regular SLBC
meetings, various other meetings are also organized by SLBC to
coordinate between various member banks, State Government, Government
Agencies, Reserve Bank of India, NABARD and the Central Government.
SLBC coordinates a network of more than 15,000 bank branches in the
state.
In FY 2015-16, the State suffered due to continual draught in more than
16000 villages and also onslaught of natural calamities, the brunt of
which is mostly borne by Agriculture and related activities. SLBC has
always been very proactive in such calamities by issuing necessary
guidelines in respect of relief measures, organizing special meetings
and guiding the members whenever necessary.
As SLBC convener, Bank of Maharashtra coordinated implementation of
Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A
total of 136 lakh accounts were opened in the State and the State was
declared as saturated for the purpose of opening of accounts. The
process of opening of accounts is continued.
S L B C Maharashtra received award for highest Adhar seeding of PMJDY
accounts from Department of Financial Service, MOF New Delhi.
7.3. FINANCIAL INCLUSION / PMJDY:
Bank continued to actively participate in the Pradhan Mantri Jan Dhan
Yojana (PMJDY) announced and launched by the Prime Minister of India.
Survey of all allotted 3051 rural Sub Service Areas (SSAs) and 755
urban wards were conducted for identification of households having no
bank account. The Bank has engaged 2,974 Bank Mitrs through corporate
BCs and under own BCA model in all the allotted SSAs. The Bank Mitrs
are being paid monthly remuneration regularly and minimum remuneration
is ensured by paying fixed monthly pay and variable commission.
Total 32.18 lakh Savings Bank accounts have been opened by the Bank
during the PMJDY campaign period and RuPay ATM Debit cards have been
issued to all the accountholders. Savings accounts of all the identified
uncovered households have been opened. The Bank has mobilized Rs.
531.97 Crore in these accounts opened during the campaign period. The
Bank also implemented Aadhaar based account opening using e-KYC. The
Bank is live on Aadhaar Enabled Payment System (On- us and Off-us) and
RuPay card PIN Based transactions. The Bank has been processing the DBT
(Direct Benefit Transfer) and DBTL (LPG Gas Subsidy) for the
accountholders. Bank is having highest number of AEPS transactions in
banking industry.
The Bank has introduced micro insurance products for life (PMJJY).
During this financial year 7,69,482 policies were issued under this
scheme. Other accident micro insurance scheme launched (PMSBY ) was
also launched and as many as 14,13,165 policies are issued under this
group insurance scheme .Atal pension Yojana was also implemented with
full vigour by our bank by issuing 43936 pension accounts under this
scheme .
The Bank has a full-fedged call centre with toll free number
18001022636 for redressal of PMJDY grievances.
The Financial Literacy Material has been prepared in vernacular
languages and supplied to all Branches / Bank Mitrs for supplying the
same to accountholders during FLC camps. Financial literacy camps are
organized different schools in districts of Maharashtra. All skilling
centers /ITI are mapped under financial literacy project Bank has been
awarded for excellent performance in the field of financial inclusion
from prestigious institutes like IBA, DFS, and Economic Times.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the
Bank, having its Head Office at Aurangabad, Maharashtra State. Total no
of branches as on 31.3.2016 stood at 397 in its area of operation
covering 17 out of 36 districts of Maharashtra State.
All 397 branches and controlling offices are now under CBS. MGB opened
06 new branches during this year.
Maharashtra Gramin Bank has crossed the benchmark of Rs.10000 Cr Total
Business and Rs.100 Cr Operating profit by achieving Rs.10224 Cr Total
Business and Rs.105 Cr Operating profit as on 31.03.2016 with a YOY
growth rate of 22.30%
The percentage of CASA to total deposit is 53.52 %.Operating profit of
MGB is Rs. 105.20 Crore (growth of 15.01 %). During the year 2015-16,
MGB has grown by 22.48 % in total deposits and 22.06 % in advances.
Under Pradhan Mantri Jandhan Yojana surveys of all allotted 898 SSAs
and 80 wards were conducted for identification of households having no
bank account. The Bank has covered all allotted SSAs by engaging BCAs.
Total 4.50 lakh accounts have been opened during the PMJDY campaign
period and "RuPay ATM debit cards" have been issued to all the account
holders.Maharashtra Gramin Bank has actively 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 2015-16 in the major Key performance parameters.
TARGET ACTUAL
SR PERFORMANCE
FOR THE FY AS ON
NO PARAMETER
2015-16 31.03.2016
Growth in Core Deposit
1 (%) 17.18% 22.48%
2 Growth in Advances (%) 23.02% 22.06%
3 Recovery % June 14 65% 67%
4 NPA Level Rs.195.00 Cr Rs.153.99 Cr.
Growth in Agriculture
5 Advances 19.67% 25.18%
6 CD Ratio 75.44% 71.61%
Increase in No. of SHGs
7 credit linked 2500 5067
Increase in No. of KCC
8 Cards 35000 173483
9 Net profit After Tax Rs.45.50Cr Rs.53.86 Cr.
10 Per Branch profit Rs.15.85 lacs Rs.17.60 lacs
11 Per Employee profit Rs.4.19 lacs Rs.4.67 lacs
8.2 The Maharashtra Executor & Trustee Company Pvt. Ltd.
Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO), the 100%
subsidiary of Bank of Maharashtra was established in 1946 with an aim
to provide services auxiliary to banking such as:
- Consultation, Drafting & Execution of will
- Consultation, Drafting and Management of Private Trusts / Public
Trusts
- Management of investments & house properties as attorney
- Guardianship of minor''s property
- Consultation for sale/purchase of property
- Filing of I-Tax Returns for individuals
The Company is located at Pune having its branch units at Pune,
Vashi-Mumbai, Thane and Nagpur. It is managing about 1085 Public &
Private Trusts. During the year, additional 37 Wills were added making
total 1110 Wills in its custody for execution.
At present, the Company manages properties both movable and immovable
of 72 clients under the Power of Attorney. The Company also acts as the
Trustees in respect of 170 policies under Married Women''s Property Act
and as Court appointed Guardian of minor''s property in 6 cases.
The net profit of METCO for F.Y. 2015-16 is Rs.41.01 lakh. It has for
the frst time (Maiden) proposed Dividend of 10% for the year 2015-2016
to its Shareholders.
The Board of Directors has passed New Memorandum of Association and
Article of Association paving way to the Company to undertake different
types of other financial Services.
9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY
During the year 2015-16, the Bank has achieved various remarkable
achievements in the field of Official Language implementation:
Mumbai based prestigious Institution in the feld of Hindi,
''Aashirvad''awarded following trophies in a grand function held on
23.09.2015 to the Bank:
''RajbhashaGourav''Award to Bank''s General Manager (HRM and Rajbhasha)
Shri Manoj Biswal.
''Special Award'' to Bank of Maharashtra for Better Hindi Implementation
during the year 2014-15.
On 07th October, 2015 Hindi day function was held in Head Offce, Pune.
Shri S. Muhnot, Chairman & Managing Director of the Bank presided over
the function. Dr. Sunil Deodhar, renowned Hindi litterateur & Programme
Executive of Akashvani Pune was the Chief Guest. Shri Manoj Biswal,
General Manager, HRM & Rajbhasha was also graced the Function, Bank''s
Executives, Officers & Employees were also present.Bank''s Internal
Rajbhasha Trophy Scheme winner Zonal Offces, Branches and Head Office
Departments were awarded during the function.
An All India Rajbhasha Seminar was organized in Bengaluru on 28th and
29th December, 2015 for all Official Language Officers of the Bank. Shri
S. Muhnot, Chairman & Managing Director of the Bank inaugurated the
seminar. Shri Manoj Biswal, General Manager, HRM & Rajbhasha guided all
the participants.
Rajbhasha Vibhag, Head Office, Pune published a collection of story
stories ''Anubhuti''written by bank''s own officers and employees.
As per instructions issued by DFS, Ministry of Finance, Govt. of India
a bridge-building exercise between Hindi and other Regional Languages,
our bank sponsored numerous Hindi and Regional language programmes in
various Zones. Sponsored programmes include literary meets, dramas,
folk music and cultural programme.
Monthly Rajbhasha E-Patrika is being regularly published every month.
As a new initiative Brail script of Rajbhasha E-Patrika is also
published for the benefit of visually challenged employees of the Bank.
During its visit on 17th September, 2015 to Lucknow, Committee of
Parliamentary Committee on Official Language reviewed Official Language
Implementation work of Bank''s Lucknow Zonal Offce. The honourable
members of the Committee expressed their satisfaction regarding
progressive use of Hindi and the implementation of new initiatives by
the Bank.
Department of Financial Services, Ministry of Finance, Government of
India, New Delhi, India has organized All India Rajbhasha Seminar &
Review Meeting in Jaipur in the third quarter of 2015-16 on 06th and
07th November, 2015. Our Bank''s General Manager Human Resources
Management and Rajbhasha, Shri Manoj Biswal represented the Bank in the
programme and addressed the executives of all banks.
Joint Director, Department of Financial Services, Ministry of Finance,
Government of India, New Delhi, Jaipurhas inspected our Jaipur Zonal
Offce on 05.11.2015. He appreciated Hindi work of Jaipur Zonal Office.
Bank of Maharashtra is convener of Town Official Language Implementation
Committees of Mumbai, Pune, Solapur, Latur & Jalgaon. All the five Town
Official Language Implementation Committees convened by the Bank
conducted various activities throughout the year and organized meetings
as per schedule.
Our bank was awarded first prize in "C" Region on 26th November, 2015 by
Town official Language Implementation Committee (Bank), Kolkata.
Our bank was awarded Second prize by Town official Language
Implementation Committee (Bank), Nagpur.
10. SECURITY
Proactive steps were taken in view of the security requirements at the
branches and for Bank''s staff and also for provisioning of physical
security infrastructure at all branches. This was done after analysis
of the threat perception, current crime scenario, crime pattern, modus
operandi of bank robberies, the breaches of security and fre incidents
besides equipping and training the security personnel and other bank
staff to counter any such eventuality.
11. DIRECTORS''RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts for
the year ended 31.03.2016:
- The applicable accounting standards of the Institute of Chartered
Accountants of India, have been followed along with proper explanation
relating to material departures, if any;
- The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India, are consistently applied and proper
disclosures are made for changes, if any;
- Reasonable and prudent judgment and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and the profit of the Bank for the year.
- Proper and sufficient care was taken for maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks, in India; and
- The accounts have been prepared on a going concern basis.
12. CHANGES IN THE BOARD OF DIRECTORS
- During the year 2015-16, the following changes took place in the
Board of Directors:
Shri R. Thamodharan was elected as Shareholder Director of the Bank
w.e.f 30.06.2015.
Dr. Archana R. Dholakia was appointed as Part time Non Official Director
of the Bank w.e.f 28.01.2016.
13. ACKNOWLEDGEMENTS
The Board of Directors wishes to express sincere gratitude to the
Government of India, the Reserve Bank of India, the Securities and
Exchange Board of India, Insurance Regulatory and Development
Authority, Indian Banks''Association and Stock Exchanges and CDSL for
their valuable advice and support; to the customers and shareholders
for their patronage; to the correspondents and associates for their co-
operation and to all the members of staff of "Mahabank Family" for
their unstinted commitment and contribution to the overall development
of the Bank.
For and on behalf of the Board of Directors
Place: Pune (S. Muhnot)
Date: 12 May, 2016 Chairman and Managing Director
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the Annual Report of the
Bank with the audited Balance Sheet, Profit and Loss Account and the
Report on Business and Operations for the year ended March 31,2015.
3.7 Vigilance:
As a measure of strengthening preventive vigilance in the bank, the
vigilance inspection of the select branches was undertaken during the
year based on their risk categorisation and accordingly 138 branches
have been inspected during the year to ensure that the system and
procedures laid down by the bank are followed by the branches. Zonal
offices have to ensure the removal of any deficiencies observed during
such inspection.
In compliance to regulatory guidelines, a Fraud Monitoring Cell has
been set up under administrative control of Risk Management Department
since July-14. This will facilitate effective investigation in fraud
cases and prompt as well as accurate reporting of fraud cases to proper
regulatory and law enforcement authorities including Reserve Bank of
India.
3.8 Compliance:
The Bank has put in place a Compliance Policy, based on the guidelines
of Reserve Bank of India. The Compliance Department headed by Chief
Compliance Officer monitors the compliance functions. It ensures the
implementation of the statutory / regulatory guidelines coming into
force from time to time. The issues relating to regulatory / statutory
compliances are addressed appropriately. Submission of various
regulatory returns is also monitored.
3.9 Marketing and Publicity:
Bank of Maharashtra Introduced a Premium Savings Bank Deposit Scheme
"Purple Privileges" for High Net worth Individuals(HNIs) covering
specialized services to the customers having quarterly average balance
(QAB) of Rs. 3 Lakh in their Savings Bank account.
The slew of benefits offered to the account holder under the product
include
- Assistance of Dedicated Relationship Manager
- Specially designed Purple lounges
- Free unlimited No. of Debit card transactions at ATMs of our Bank
and any other banks.
- Higher Transaction Limit on ATM-cum-Debit card(per day)
- Free NEFT/RTGS through Internet Banking etc. Features of the
product also include:
Personalized ATM-cum-Debit Card and Cheque Books,50% concession in
processing fees of retail Loans,200 free Personalized Cheque leaves
p.a., Free (100% concession on annual maintenance charge) Gold Credit
Card, Reward Points and Free Demat account facility for the first year.
3.10 Citizen''s Charter:
The Bank has adopted the Charter since 2000-01, which details the
duties and responsibilities of the Bank towards its customers. The
charter is displayed at all the branches and Bank''s website. The Bank
has also adopted a citizen''s charter of RBI on exchange of notes and
coins.
4. SOCIAL BANKING
4.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable
and sustainable economic development by timely and hassle-free
availability of credit for productive purposes to Small and Marginal
Farmers, Micro and Small Enterprises, Retail Traders, Professional and
Self Employed, Women Entrepreneurs and entrepreneurs from economically
weaker sections.
The outstanding advances under Priority Sector as of 31st March, 2015,
aggregates to Rs. 39,095 Crore constituting 41.76% per cent of the
Adjusted Net Bank Credit. (growth of Rs. 4,269 Crore, 12.26% over last
year).
4.2 Agriculture
The Bank disbursed Rs. 6799.90 Crore for agriculture and allied
activities during the year 2014-15. The total outstanding advances to
agriculture sector reached a level of Rs. 15,521.30 Crore as on
31.03.2015 (growth of 18.56 per cent). Bank focused on growth of
investment credit under Agriculture during the year 2014-15 and
disbursed Rs. 1,300 Crore. Bank also entered into strategic tie-up
arrangements with Tractor Manufacturers, Micro Irrigation Companies for
promoting farm mechanization and micro irrigation activities during the
year.
The Bank undertook awareness/sensitization programmes for all the
branches for increasing advances to agriculture by providing hassle
free credit to farmers.
4.2.1 Mahabank Kisan Credit Card (MKCC)
This scheme gained popularity especially in rural areas where it is
being propagated successfully and vigorously. The Bank has issued total
4,92,683 Kisan Credit Cards to farmers. Credit flow to MKCC
beneficiaries has reached to the level of 5,597.89 Crore as on
31.03.2015 (growth of 29.80 %).
4.3 Micro, Small and Medium Enterprises (MSME)
SMEs are recognized as a major growth engine for the Indian economy.
They generate opportunities for direct and indirect employment by
facilitating use of natural resources and local skills to stem the tide
of migration to urban areas and promote low investment enterprises.
Finance is made available to viable enterprises at an attractive and
low rate of interest. On line enquiry portal is made available on the
Bank''s website.
Our Bank has adopted Simplified Loan Application for MSEs and the same
is displayed on the Bank''s website. The Bank has also adopted Bank''s
Code of Commitment to Micro and Small Enterprise and the same is
displayed on the Bank''s website.
The Bank''s lending to Micro, Small and Medium Enterprises which was at
the level of Rs.15,098 Crore as at 31.03.2014, increased to Rs.16,796 Crore
as at 31.03.2015(growth of 11.24 per cent).
For promoting finance under this category, Bank has entered into
strategic tie up arrangements with Truck / Vehicle / Tractor /
Passenger car manufacturers. Bank has also entered into an MoU with
Bharatiya Yuva Shakti Trust for Credit facilitation and hand holding of
the Micro entrepreneurs specially under Women and SC/ST categories.
Centralized Processing Cell have been set up at all Zonal Offices for
speedy disposal of MSME proposals.
Bank has launched 5 new products for financing to MSME borrowers,
1. Maha MSME Project Loan Scheme
2. Maha MSME Machinery/Equipment Scheme
3. Maha MSME Cash Credit Scheme
4. Maha MSE Collateral Free Term Loan Scheme
5. Maha MSE Collateral Free Cash Credit Scheme
Bank has been awarded best MSME Bank Award 2014 for large Bank- Runner
up category, by the Chamber of Indian Micro, Small and Medium
Enterprises (CIMSME).
4.3.1 Coverage under CGTMSE Scheme
Under Credit Guarantee Fund Scheme for Micro, Small and Medium
Enterprises of Government of India credit facilities up to Rs..100.00
lakh are covered, wherein no collateral security and third party
guarantee are insisted by the Bank. For the accounts covered under this
scheme, Bank is bearing 50% annual guarantee fee for loans above 10.00
lakh and entire annual guarantee fee for loans below 10.00 lakh. The
Bank has sanctioned loans of Rs.1805.13 Crore to 17,058 borrowers under
this scheme up to March 2015. During the current FY, coverage under
Credit Guarantee Fund Scheme has increased by 36.11%.
5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK
5.1. Credit Flow to Retail Sector
The Bank is providing retail loans to salaried persons, professionals,
businessmen and pensioners for purchase, repair, renovation of housing
properties, plots, consumer durables, two/four wheeler vehicles other
personal needs, education etc. The retail loan portfolio of the bank is
Rs.11817.49 Crore.
5.2. Mahabank Gold Loan Scheme
Gold ornaments are the traditional and inherited form of savings among
the people in India. Being one of the most liquid and precious asset,
it serves as a dependable and acceptable form of security to raise
loans for meeting immediate financial needs for business, agricultural,
consumption purposes such as marriage, medical, educational expenses
etc. People borrow money by pledging Gold Ornaments at very high rate
of interest. To tap the potential of gold loans as a lucrative asset
and to meet the credit requirement of our customers, Bank has launched
a new retail loan product "Mahabank Gold Loan Scheme for Retail
Purposes" w. e. f. 26.09.2014. With a view to meet the credit
requirement of our customers, Bank has launched a new retail loan
product "Mahabank Gold Loan Scheme" w. e. f. 01.11.2010. The total
portfolio of Gold Loan of our Bank as on 31.03.2015 is Rs. 92.81 Crore.
5.3. Housing loan to public
The Bank has in place Housing Loan Scheme to meet the needs of all
economic segments including NRIs. Financing housing sector in rural and
urban parts of India is a thrust area. The housing loan portfolio of
Bank is Rs. 9868.84 Crore as on 31.03.2015, which constitutes 83.51% of
total retail portfolio of the Bank. The housing loan schemes of the
Bank were revisited and revised schemes were launched like "purchase
/ construction of new / existing house / flat, repairs / renovation /
alteration of existing house / flat, purchase of plot and construction
thereon". The Bank has recently launched "Maha Combo Loan Scheme"
for purchase of house and a car taken together..
5.3.1 One per cent Interest Subvention on Housing Loan up to Rs.15.00
Lakh.
As per GOI guidelines, Bank has provided 1% interest subvention to
borrowers, who availed housing loans up to Rs.15.00 lakh for construction
purpose of house where
5.3.2 Mahabank Top-Up Loan Scheme
In order to extend additional credit support to our regular housing
loan borrowers, Bank has launched "Mahabank Top Up loan Scheme" w.
e. f. 12.09.2014. Under this scheme credit is extended for repair /
renovation / furnishing of house, children''s education, Marriage of
Children, Medical treatment, buying a vehicle or hi-tech gadgets etc.
We have established a call centre at H. O. to make outbound calls to
good housing loan borrowers for last two years. Loans upto Rs.25 lacs can
be considered under the scheme.
5.4. Model Educational Loan scheme
With the objective of ensuring that all deserving students get
opportunity to pursue higher education, the Bank implemented a Model
Educational Loan Scheme as per IBA guidelines. As of March 2015, the
Bank had lent Rs.702.82 Crore to 29,516 students. The Bank has provided
the facility of submission of application for education loan through
web-access (on line) also. Bank has also introduced a new feature
called "Pre Approved Education Loan", to its "Model Education
Loan Scheme" to address the requirement of multiple sanction letters
required by students applying for study at foreign universities. Bank
also has "Model Education Loan Scheme for Vocational Courses" where
loans can be sanctioned for completion of short duration job oriented
skill development programmes. A loan up to 1.50 lakh can be sanctioned
under the scheme.
5.5. Centralized Processing of loans
Bank has established Centralized Processing Cells for retail /
commercial advances at all its 34 Zones for hassle free and due
diligence of loans with aim to improve turn around time.
5.6. Micro Finance
The Bank has always recognized the importance of credit to rural and
urban poor for taking economic activity. The SHGs have proved to be
effective instruments for empowerment of women Bank has specialized SHG
branches in all six lead districts and at Goregaon, Mumbai.
As on 31.03.2015, there were 123643 SHGs formed by the Bank, out of
which 103028 SHGs have been linked with the bank credit with
outstanding of Rs..161.10 Crore as on 31st March 2015.
5.7. Assistance to SC/ST beneficiaries:
The Bank has been actively extending finance to SC/ST beneficiaries
through various schemes. Total finance as on 31.03.2015 to SC/ST
beneficiaries stood at Rs.1642.67 Crore, constituting 18.11 per cent of
advances to weaker sections.
5.8. Weaker Sector Advances:
Bank is providing credit facilities to small / marginal farmers, share
cropper, landless labor, SC /ST Beneficiaries, Self Help Groups, Joint
Liability Groups, The total portfolio of weaker Sector advance of our
Bank as on 31.03.2015 stood at Rs. 9068 Crore constituting 9.69% of ANBC.
5.9. Advances to Minority Community
A special cell has been set up at Head Office to review and ensure
smooth flow of Credit to minority community. The branches were
identified in minority concentrated districts and special targets were
allotted to these branches for lending to minority communities. As of
March 2015, advances to Minority
5.10 National Pension System (NPS Lite Swavalamban)
NPS Lite Swavalamban was made live in July 2013 and total 1806 branches
are registered as NLCC (NPS Lite Collection Centre) with NSDL for
collecting contrbution under the scheme. 16293 accounts were opened
under the scheme up to 31.03.2015. There are 6355 accounts under NPS
general scheme.
5.11 ALTERNATE DELIVERY CHANNELS
5.11.1 ATMs
Bank has 1849 ATMs installed across the country as at 31/03/2015. With
relocation of 182 Lobby ATMs to viable sites, continuous monitoring our
ATM services are ensured and 1775 ATMs are in service as at 31/03/2015.
Bank is issuing VISA, RUPAY and EMV cards.
Transaction volume for Mar 2015 has been 53.08 lacs (On us 25.33 lacs
and Off us 27.75 lacs). Average transactions per ATM per Day were 96
for the month of March 2015 and are expected to reach the industry
level average in the ensuing quarter. Bank has installed two ATMs with
display of Bank''s Services and products in two Malls of Pune. Bank is
in the process of installing ATM at Pune Airport.
5.11.2 INTERNET /SMS/Phone Banking
Bank could achieve an increase of 23% in Internet Banking, 29% in Phone
Banking and 35% in SMS banking over the previous year.
With continuous follow up and increase in net security through the
Mahasecure for IBN users, substantial rise in users/online transactions
is expected.
5.11.3 MOBILE BANKING
Bank launched Maha-mobile, a New revised Mobile banking Application on
28/01/2015 and registered 22803 Users for this technology based
service.
5.12 Senior Citizen
Bank has specialized branches for Senior Citizens exclusively for
catering their banking needs at Cuffe Parade, Mumbai and at Bajirao
Road, Pune. Bank is giving 50 basis points additional interest on their
term deposits. At present bank is catering to 33 lacs saving accounts
of Senior Citizens.
5.13 Concept Relationship Managers and Compliance thereof
Bank has implemented concept of Relationship Managers to drive business
growth with better customer service to High Networth Individuals (HNI)
customers. Total 391 Relationship Managers are exclusively posted at
branches to attend all customer needs of these HNI customers.
6. CORPORATE SOCIAL RESPONSIBILITY
The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune
District of Maharashtra have been undertaking various rural
developmental activities for the benefit of farmers'' viz. Vermi
compost, Re-development of Saline Soils, Soil Testing etc. Bank has
established Soil testing lab (STL) through MARDEF Trust at RDC Bhigwan.
The Soil Testing Laboratory has analyzed 11,257 Soil and Water samples
in the year 2014-15 and accordingly counseling is done. Farmers from
the districts of Pune, Ahmednagar, Sholapur and Satara are taking
benefit of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development
Foundation (MARDEF) established by the bank, undertakes various
projects and village improvement programmes. MARDEF is imparting
training to farmers on various subjects in Agriculture. Trust has
implemented 88 training programmes for farmers at RDC Bhigwan and
Hadapsar and has benefited 2,915 farmers from April 2014 to March,
2015.
The Bank has established Seven Mahabank Self Employment Training
Institutes (MSETI) for providing training to rural youth and women to
enable them to acquire skills for self-employment through small
business enterprises. The Institute has centers located at Pune,
Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has
so far imparted training to 16,600 educated unemployed youths. The
settlement rate is 60 per cent.
Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of
Maharashtra and National Institute of Bank Management is actively
involved in formation, nurturing, training and ensuring linkage of SHGs
to Bank Credit.
The Bank has opened Financial Literacy Centers in Six Lead Districts
namely Pune, Nask, Aurangabad, Satara, Jalna and Thane for creating
awareness about banking schemes.
Bank has helped various NGOs during the year extending financial
support to acquire necessary inputs for carrying their activities.
These include the following:
- Fixing of artificial limbs to the needy patients.
- Diesel Generator set for the school meant for physically challenged
children
- Building / classroom / Kindergarten equipments for the needy,
mentally retarded and cerebral palsy children, cancer patients and Old
age home.
- Conducting cancer detection camps in slums for the needy.
Moreover Bank has always stood for the cause of society by contributing
at large for improving medical facilities, vocational training, basic
amenities etc. Bank is also helping emerging sports persons at budding
stage by sponsorships and providing financial assistance to bring the
glory to the Nation and contributing to social cause.
With a view to publicize Bank''s various products and also brand image
coupled with corporate social respons bilities, Bank has sponsored
various programs like "Sponsorship to Lila Poonawala Foundation for
scholarship to 10 Economically poor Girls having excellent track
record", "Sponsorship to Army H.Q at Maharashtra , Guajrat and Goa
for Durand Cup 2014", Sponsorship to Rashtriya Madhyamic Sahitya
Abhiyan for Teacher Training Program 2014", "Donation to Bhagwan
Mahaveer V klang Sahayata Samiti, Jaipur for artificial limbs",
"Donation to ISKCON Food Relief Foundation for purchase of Mini Truck
which is useful in Mid Day Meal Program", "Donation to Vipassana
Kendra Pushkar for its various projects viz. Rain Water Harvesting and
Recycling projects, Solar Hot Water projects, Drinking Water Facilities
Project" etc. Bank has also donated to Community Aid and Sponsorship
Program (CASP) for welfare of children from poor sections of society.
Following CSR activities were undertaken in Pune.
a) Water Cooler to Baneshwar temple.
b) Sponsorship for water tank construction at Jejuri Fort.
c) Sponsorship for uniform of mentally challenged students at Jeevan
Wardhani school, Saswad on Republic day.
SR
NO Name of the girls
1 Aishwarya Nandkumar Bodke, Age 16 years.
2 Aishwarya Sunil Manjrekar, Age 17 years.
3 Archana Sanjay Dhaybar, Age 17 years.
4 Dhanashree Laxman Lad, Age 16 years.
5 Harshu Dattatray Pawar, Age 17 years.
6 Komal Rajendra Gorad, Age 17 years.
7 Pooja Laxman Warekar, Age 16 years.
8 Prajakta Rajesh Naidu, Age 17 years.
9 Pratima Laxman Thorat, Age 17 years.
10 Rupali Nandu Rasal, Age 17 years.
11 Tejal Rakhamaji Somoshi, Age 17 years.
12 Vishakha Vasant Dhole, Age 17 years.
7. LEAD BANK SCHEME
7.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of Maharashtra
State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane.
Every year district credit plans for the districts are prepared and
implemented with the cooperation of other banks as well as in
coordination with District Collectors of respective Districts.
7.2 State Level Bankers'' Committee
The Bank is the Convenor of State Level bankers'' Committee (SLBC) for
the State of Maharashtra and prepares State Annual Credit Plan. The
plan for the year 2014-15 was for Rs.1,57,292/- crore which is highest in
the country. The same was approved in a special meeting held under the
Chairmanship of Hon''ble Chief Minister of Maharashtra. SLBC also
ensures holding of quarterly meetings regularly to oversee the
implementation of State Annual Credit Plans, priority sector lending
and Govt. sponsored schemes in the State. Apart from regular SLBC
meetings, various other meetings are also organized by SLBC to
coordinate between various member banks, State Government, Government
Agencies, Reserve Bank of India, NABARD and the Central Government.
SLBC coordinates a network of more than 10,000 bank branches in the
state.
In the FY 2014-15, the State suffered continual onslaught of natural
calamities, the brunt of which is mostly borne by Agriculture and
related activities. SLBC has always been very proactive in such
calamities by issuing necessary guidelines in respect of relief
measures, organizing special meetings and guiding the members whenever
necessary.
As SLBC convener, Bank of Maharashtra coordinated implementation of
Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A
total of 93.97 lakh accounts were opened in the State and the State was
declared as saturated for the purpose of opening of accounts. The
process of opening of accounts continues.
7.3. FINANCIAL INCLUSION / PMJDY:
The Bank actively participated in the Pradhan Mantri Jan Dhan Yojana
(PMJDY) announced and launched by the Prime Minister of India on
15.08.2014 and 28.08.2014 respectively.
Survey of all allotted 3051 rural Sub Service Areas (SSAs) and 755
urban wards were conducted for identification of households having no
bank account. The Bank has engaged 2,974 Bank Mitrs through corporate
BCs and under own BCA model in all the allotted SSAs. The Bank Mitrs
are being paid monthly remuneration regularly and minimum remuneration
is ensured by paying fixed monthly pay and variable commission.
Total 17.71 lakh Savings Bank accounts have been opened by the Bank
during the PMJDY campaign period and RuPay ATM Debit cards have been
issued to all the accountholders. Savings accounts of all the
identified uncovered households have been opened. The Bank has
mobilized Rs.206.14 Crore in these accounts opened during the campaign
period. The Bank also implemented Aadhaar based account opening using
e-KYC. The Bank is live on Aadhaar Enabled Payment System (On- us and
Off-us) and RuPay card PIN Based transactions. The Bank has been
processing the DBT (Direct Benefit Transfer) and DBTL (LPG Gas Subsidy)
for the accountholders. Bank is having highest number of AEPS
transactions in banking industry.
The Bank is in the process of implementation of micro insurance
products and pension scheme as per the directions of the Ministry of
Finance.
The Bank has a full-fledged call centre with toll free number
18001022636 for redressal of PMJDY grievances.
The Financial Literacy Material has been prepared in vernacular
languages and supplied to all Branches / Bank Mitrs for supplying the
same to accountholders during FLC camps. Bank has been awarded for
excellent performance in PMJDY by Federation of Industry Trade and
Services, New Delhi.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the
Bank, having its Head Office at Aurangabad, Maharashtra state. Total no
of branches as on 31.3.2015 stood at 391 in its area of operation
covering 17 out of 36 districts of Maharashtra State.
All 391 branches and controlling offices are now under CBS. MGB opened
13 new branches during this year.
The percentage of CASA to total deposit is 58.07 %.Operating profit of
MGB is 95.25 Crore (growth of 24.83 %).
Under Pradhan Mantri Jandhan Yojana surveys of all allotted 898 SSAs
and 80 wards were conducted for identification of households having no
bank account. The Bank has engaged 898 BCAs in all allotted SSAs. Total
3.06 lakh accounts have been opened during the PMJDY campaign period
and "RuPay ATM debit cards" have been issued to all the account
holders.
During this year 2014-15, MGB has grown by 18.64 % in total deposits
and 21.60 % in advances.
8.2 The Maharashtra Executor and Trustee Company Pvt. Ltd.
Maharashtra Executor and Trustee Company Pvt. Ltd. (METCO), the 100%
subsidiary of Bank of Maharashtra was established in 1946 with an aim
to provide services auxiliary to banking such as:
- Consultation, Drafting and Execution of will
- Consultation, Drafting and Management of Private Trusts / Public
Trusts
- Management of investments and house properties as attorney
- Guardianship of minor''s property
- Consultation for sale/purchase of property
- Filing of I-Tax Returns for individuals
The Company is located at Pune having its branch units at Pune,
Vashi-Mumbai, Thane and Nagpur. It is managing about 1100 Public and
Private Trusts. During the year, additional 25 Wills were added making
total 1086 Will in its custody for execution.
At present, the Company manages properties both movable and immovable
of 82 clients under the Power of Attorney. The Company also acts as the
Trustees in respect of 170 policies under Married Women''s Property Act
and as Court appointed Guardian of minor''s property in 6 cases.
The net profit of METCO for F.Y. 2014-2015 is Rs..27.67 lakh.
9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY
During the year 2014-15, the Bank has made various remarkable
achievements in the field of Official Language implementation.
Mumbai based Prestigious Institution in the field of Hindi,
''Aashirvad'' awarded following trophies in a function held on
31.10.2014 to the Bank:
- ''Rajbhasha Ratna'' Award to Bank''s Chairman and Managing
Director Shri S. Muhnot.
- ''Rajbhasha Gourav'' Award to Bank''s General Manager (HRM and
Rajbhasha)
Shri Narendra Kabra.
- Special Award to Bank of Maharashtra for Better Hindi
Implementation during the year 2013-14.
On 23rd September, 2014 Hindi day function was held in Head Office,
Pune, where Bank''s Internal Rajbhasha Trophy Scheme winner Zonal
Offices, Branches and Head Office Depts for the year 2013-14 were
awarded.
An all India Seminar was organized in Jaipur on 12th and 13th December,
2014 for all Official Language Officers of the Bank.
On 3rd March, 2015, 30th meeting of Maharashtra State Level Banker''s
Committee (Rajbhasha) was held at Head Office, Lokmangal, Pune; wherein
shields were presented to the winner member banks and financial
institutions of state level Rajbhasha Shield competition.
Rajbhasha Vbhag, Head Office, Pune published two unique publications
during the year. One is a cartoon book ''Bachat ki Kahani'' meant for
school children under financial literacy program and the second one
''Kshitiz'' is a compilation of poems written by bank''s own officers
and employees.
As per instructions issued by DFS, Ministry of Finance, Govt. of India
under Rajbhasha Prayog Aapsi Samvad Sarthak Disha as bridge-building
exercise between Hindi and other Regional Language, our bank sponsored
numerous Hindi and Regional language programs in various Zones.
Sponsored programs include literary Meets, Dramas, Folk music and
Cultural programs.
To promote Use of Hindi in day-to-day work Rajbhasha Vibhag, Head
Office, Pune started ''Aaj Ka Shabd'' in bilingual form on ULC log-in
page of bank''s intranet daily. As a new initiative Monthly Rajbhasha
E-Patrika is being regularly published since July, 2014.
During its visit on 08th January, 2015 to Nagpur TOLIC, Drafting and
Evidence Committee of Parliamentary Committee on Official Language
reviewed Official Language Implementation work of Bank''s Nagpur Zonal
Office, as member of TOLIC, Nagpur.
Bank of Maharashtra is the convener of 04 Town Official Language
Implementation Committees namely Mumbai, Pune, Solapur and Latur. This
year Town Official Language Implementation Committee (Bank) Pune was
conferred Ist prize of prestigious Indira Gandhi Shield for better
coordination of the committee. Also, Mumbai Regional Implementation
Office (West), Department of Official Language, Ministry of Home
Affairs, GOI awarded Ist prize for ''B'' Region to TOLIC (Bank) Pune.
All four Town Official Language Implementation Committees convened by
the bank conducted various activities throughout the year and organized
meetings as per schedule.
Town official Language Implementation Committee,Hyderabad awarded 2nd
prize to Bank''s Zonal Office, Hyderabad on
19.05.2014 for better use of Official Language.
Town official Language Implementation Committee, Jalgaon awarded 2nd
prize and trophy for the year 2013-14 to Zonal Office, Jalgaon for
better use of Official Language.
During the year 2014-15, Deputy Director (O.L.), Regional
Implementation Office, Department of Official Language, Ministry of
Home Affairs inspected the progressive use of Hindi at our Delhi,
Nagpur, Mumbai City, Bhopal and Jalgaon Zonal Offices.
Shri Deepak Bhalchandra Karpe, Dy.Manager posted at our Sundrel branch
(Indore) has been awarded IInd prize in RBI''s Inter-bank Hindi Essay
competition for the year 2014 in under Linguistic Group ''B''.
10. Awards for 2014-15
Bank received following awards for current year 2014-15.
A) BFSI Award by World HRD Congress
1. Best Bank Award.
2. Bank with Most Admired Services.
3. Bank with Best Customer Services.
4. Bank with Best Technology orientation.
5. Corporate Communication Awards.
B) "Best Bank for Managing IT risk among mid size Banks" award from
Dr. Raghuram Rajan, Governor, Reserve Bank of India on 15th October,
2014.
C) Best MSME bank Award - Large bank - Runner -up by CIMSMS ( Chamber
of Indian Micro, Small and Medium enterprises.
11. DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts
for the year ended 31.03.2015:
- The applicable accounting standards of the Institute of Chartered
Accountants of India, have been followed along with proper explanation
relating to material departures, if any;
- The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India, are consistently applied and proper
disclosures are made for changes, if any;
- Reasonable and prudent judgement and estimates were made so as to
give a true and fair view of the state of affairs of the Bank at the
end of the financial year and the profit of the Bank for the year.
- Proper and sufficient care was taken for maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks, in India; and
- The accounts have been prepared on a going concern basis.
12. CHANGES IN THE BOARD OF DIRECTORS
- During the year 2014-15, the following changes took place in the
Board of Directors:
- Dr. Sunil U. Deshpande, ceased to be Director wef.16.03.2014.
- Dr.S.Rajagopal ceased to be Director wef.10.06 2014.
- Shri.G. Sreekumar was appointed as RBI nominee Director
wef.10.06.2014.
- Shri.Premchandra Amolakchand Sethi was elected as Shareholder
Director wef.27.06.2014
- Shri. R C Agrawal, ceased to be a Director wef.05.08.2014
- The Board of Directors place on record their sincere appreciation for
the valuable contribution made by the outgoing Directors.
13. ACKNOWLEDGEMENT
The Board of Directors wishes to express sincere gratitude to the
Government of India, the Reserve Bank of India, the Securities and
Exchange Board of India, Insurance Regulatory and Development
Authority, Indian Banks'' Association and Stock Exchanges and CDSL for
their valuable advice and support; to the customers and shareholders
for their patronage; to the correspondents and associates for their co-
operation and to all the members of staff of "Mahabank Family" for
their unstinted commitment and contribution to the overall development
of the Bank.
For and on behalf of the Board of Directors
Place : Pune (S. Muhnot)
Date : 14th May, 2015 Chairman and Managing Director
Mar 31, 2014
The Directors have great pleasure in presenting before you the Annual
Report of the Bank along with the audited Balance Sheet, Profit ACY- Loss
Account and the Report on Business and Operations for the year ended
March 31, 2014.
2. PERFORMANCE OF YOUR BANK 2013-14
2.1 Business
Total business of your Bank stood at X 2,07,172 crore as on 31.03.2014,
as compared to X 1,70,734 crore a year ago, registering a year-on-year
growth of 21.34 per cent.
2.2 Deposits
Total deposits of the Bank stood at X 1,16,803 crore, up by 23.8 per
cent over the level of X 94,337 crore as at the end of March 2014.
Current ACY- Savings Bank (CASA) deposits increased to X 41,921 crore as
on 31.03.2014. Share of CASA deposits in total deposits of your Bank
stood at 35.89 per cent as on 31.03.2014 which is one of the highest
among Public Sector Banks.
2.3 Credit Deployment
The Bank has put in place a lending policy in conformity with the
guidelines issued by RBI and also the lending norms of the Government
of India. It emphasizes on qualitative credit growth and ensures
compliance with regulatory requirements as well as the prudential
exposure limits.
Gross advances of the Bank increased from X 76,397 crore as on
31.3.2013 to X 90,369 crore as on 31.3.2014 with growth of 18.29 per
cent. Efficient service with customer centric approach has enabled the
bank in registering growth, in-line with the banking industry during
the year 2013-14.
Several steps have been taken for improving credit delivery mechanism
along with improvement in turnaround without compromising the overall
quality of credit.
Mid Corporate shall continue to be one of the thrust areas for the bank
in future for increasing yield on advances and dispersion of credit
risk.
Efforts are continued to improve portfolio yield by reshuffling the
portfolio mix.
2.3.1 Sectoral Deployment of Credit
While financing to various segments of the economy, the Bank has
endeavored to maintain a diversified credit portfolio, with a view to
ensuring credit dispersion across sectors. The Bank has continued its
efforts to support core, manufacturing and priority sectors as well as
infrastructure projects, which serve to drive economic growth. This
focus of the Bank will continue in future, in line with the national
economic growth priorities.
Industry wise credit deployment as on 31.03.2014 is as under.
Percen- Percen-
Outsta- tage to Outsta- tage to
Sr nding nding
No. Credit deployed as on total as on total
credit credit
31.03.2014 31.03.2013
X in crore outsta- X in crore outsta-
nding nding
1 Industry 48889.64 54.10 ACU- 41307.25 54.49 ACU-
of which
i. Infrastructure 13004.99 14.39 ACU- 12223.59 16.13 ACU-
ii. Chemicals, Dyes, 1578.92 1.75 ACU- 1387.15 1.83 ACU-
Paints, etc
iii.Petroleum 2270.61 2.51 ACU- 1552.71 2.05 ACU-
iv. Iron ACY- Steel 2689.22 2.98 ACU- 1640.21 2.16 ACU-
v. NBFCs ACY- Trading 15111.27 16.72 ACU- 12671.06 16.72 ACU-
vi. Engineering 2946.42 3.26 ACU- 2496.14 3.29 ACU-
vii.Construction 387.52 0.43 ACU- 318.29 0.42 ACU-
viii. Other Industries 10900.69 12.06 ACU- 9018.1 11.90 ACU-
2 Agriculture 10276.07 11.37 ACU- 7378.35 9.73 ACU-
3 MSME 19062.99 21.09 ACU- 16788.21 22.15 ACU-
4 Housing 8854.16 9.80 ACU- 6578.23 8.68 ACU-
5 Education 622.71 0.69 ACU- 551.59 0.73 ACU-
6 Exports 1880.71 2.08 ACU- 1886.06 2.49 ACU-
7 Commercial Real
estate 4793.96 5.30 ACU- 3551.63 4.69 ACU-
2.3.2 Credit Administration and Monitoring
Early warning signals are captured from the CBS system on daily basis
for close monitoring of stressed accounts on near real time basis.
System generated SMS alerts are sent to the customers to pre-empt
delinquency. An integrated web-based reporting has been introduced in
the Bank to enable instant communication between branches/Zones/Head
Office for effective monitoring of credit portfolio.
The credit quality of borrowal accounts is further monitored through
periodical asset performance review, credit audits ACY- stock audits.
Timely rescheduling of repayment terms is undertaken in deserving
cases.
2.4 Asset Performance
During the Financial Year (FY) 2013-14, total cash recovery in NPAs was
X 706.41 crore (last year X 411.22 crore). Of this. recovery in Ledger
balance was X 646.46 crore (X 198.73 crore), including recovery in sale
of Assets X 242.16 crore (NIL), recovery in written off accounts was X
303.32 crore (X 156.76 crore) and recovery in cases of unapplied
interest was X 38.22 crore (X 55.73 crore). This was besides up
gradation of NPAs to the tune of X 101.39 crore (X 105.19 crore). This
year''s achievement was possible due to intensive follow up adopted by
the Branches with the defaulting borrowers through letters, notices,
recovery camps, Lok Adalatas, actions under SARFAESI and through DRTs.
To address and improve recovery in small sized NPAs having ledger
balances upto X 10.00 lakh, the bank established additional 5 Micro
Asset Recovery Cells (MARC) at Zonal offices thereby making total 39
MARCs. The recovery performance through this vertical was encouraging
with MARCs recovering X 376.66 crore (X 210.53 crore). The share of
recovery of MARCs in total cash recovery of the bank was 54.05 ACU-
(51.20 ACU-).
The bank continued during this FY a special ''One Time Settlement''(OTS)
scheme and also launched special OTS product (M-zero) for recovery in
NPA accounts having ledger balance up to X 5.00 lakh. The total
recovery in NPAs under this scheme was X 50.15 crore as against X 38.40
crore in the previous year.
The Gross NPA ratio of the bank stood at 3.16 ACU- during the financial
year from 1.49 ACU- as of 31.03.2013. Similarly the ratio of Net NPAs stood
at 2.03 ACU- as on 31.03.2014 as against 0.52 ACU- a year ago. The NPA
ratios of the Bank are much better than not only of the peer Banks but
also of many large Banks.
2.5 Foreign Exchange Business and Export Finance
During the year 2013-14, the Bank has achieved merchant turnover of X
28,370 Crores (X 30,437 Crores) and an inter- bank turnover of X
4,71,327.30 (X 4,14,162 Crores) and earned Forex Profit of X 74.60
Crores (X 60.41 Crores). The outstanding export credit as on 31st Mar
2014 was X 1948.97 as against X 1908.31 as on 31st Mar 2013. The
Treasury ACY- International Banking Branch at Mumbai (A category branch)
and 33 B Category branches across the country cater to the
International business needs of the customers of the Bank. In order to
provide prompt service to Non Resident Indian (NRI) clients, Bank has a
NRI Cell at Deccan Gymkhana Branch, Pune which provides online
remittance facilities for its NRI customers. With a view to enable
branches to provide better service to NRI clients, Bank has provided
Instant NRI information which is updated on monthly basis.
2.6 Investments
The net investments of the Bank stood at X 37249.58 crore as on
31.03.2014 as compared to X 31430.31 crore as on 31.03.2013.
Investments under Held to Maturity (HTM) category consist of 86.97 per
cent while Available for Sale (AFS) comprised 12.74 per cent of total
investment portfolio as on 31.03.2014. The net interest income from
investment activity increased to X 2543.03 crore from X 2231.28 crore
during the last year, a growth of 13.97 per cent.
2.7 Borrowings
The borrowings of the Bank as on 31.03.2014 stood at X 8326.47 crore,
including refinance availed from RBI. NABARD and SIDBI to the extent
of X 2861.08 crore. The total borrowings as at 31.03.2013 were X
12877.49 crore.
2.8 Merchant Banking
The Bank handled 84 issues of Commercial Paper amounting to X 20160.85
crore for its clients as an Issuing and Paying Agent (IPA) during the
year and earned a commission income ofRs. 9.52 lakh.
2.9 Depository Services
The Bank is Depository Participant (DP) of Central Depository Services
of India Ltd. (CDSL) since September 1999. Account level queries
related to Demat account balances etc. are available at the 131
identified branches of the Bank. All the branches of the Bank can open
Demat account through the Demat Cell of Mumbai. The Bank also provides
free ACI-EASI ACI- facility (through CDSL) to view account position
through internet. Query compliance facility is available at Maha Seva
(Customer Care Center). The Bank has added tie up with two Share
Broking Companies i.e. Reliance Securities Ltd and Ventura Securities
Ltd for Maha-e-trade (Online Share Trading) Services for its customers
along with existing Religare Securities Ltd. In order to add new
customers in its fold under Demat, Banks is offering waiver in annual
maintenance charges for the Demat Accounts opened under Rajiv Gandhi
Equity Scheme for three years.
The Annual Maintenance Charges and Dematerialization charges (for
converting Bank''s physical shares into electronic form) are waived for
staff/Ex-staff and share holders of the Bank. The Bank has also
introduced Basic Services Demat Account Facility (BSDA).
2.10 Banc assurance
All the branches of the Bank are authorized to sell life and non-life
insurance products of Life Insurance Corporation of India and United
India Insurance Co. Ltd. under corporate agency arrangements,
respectively. The Bank has sold 98929 Non-life Insurance Policies and
30554 Life Insurance policies during the year 2013-14. The LIC
accredited 198 branches of the Bank as Bima Bank, besides 17 Zones
which were declared as BIMA Zone. The Delhi Zone became Double Bima
Zone. The Bank offers group insurance scheme of LIC namely ''Maha
Suraksha Deposit Scheme (New One Year Renewable Group Assurance Plan'')
a life insurance cover of Rs 1 lakh for deposit account holders. The
Bank offers Maha Swasthya Yojana, a Family Floater Group Mediclaim
Policy of United India Insurance Co. Ltd. for its customers.
The Bank earned a commission of X 7.32 crore from life insurance,
showing growth of 10 per cent and X 4.12 crore for non-life insurance
business during the year 2013-14 showing increase of 18 per cent.
2.11 Mutual Fund Activity
The Bank has a tie-up with 25 AMCs (Asset Management Companies) for
selling Mutual Fund products. The mutual fund business mobilized by the
Bank earned commission income of X 5 lakh during the year.
2.12 Government Business
During the year 2013-14, 544553 challans of Direct Taxes were
collected ADs- similarly 1,89,696 challans of Indirect taxes were
collectedby the branches. Our Branches are also collecting other state
Govt. taxes including GRAS of Maharashtra State and the total number of
Challans collected during the Year is 5,41,220. Total commission to
the tune of X 2.70 Cr was received on Tax collection business from
Central Government and Commission received from states Tax collection
business is X 0.72 Cr. The Bank has started processing and crediting
monthly pension payments of more than 1,13,624 Central Government,
Defence, Railway and Telecom pensioners at Central Pension Processing
Cell (CPPC), Pune. The processing and payment for new PPOs/ corrigendum
PPOs Master Data base for central Government pensioners etc are being
handled by CPPC. This facilitates faster and accurate payment of
pension as well as quick settlement of funds by RBI. Timely complaint
redressal system has also been established for pension complaint. The
commission on Government Business (Pension) for the Year 2013-14 is X
13.57 Cr.
The unique facility of direct ACY- Indirect taxes ACY- VAT collection
of Maharashtra is provided by the Bank, at the branch counter in all
branches through Maha e-seva services. E-payment of Taxes facility
available for net banking customers is also available for direct /
Indirect Taxes / VAT payments (for Govt. of Maharashtra). The tax
payment facility has been introduced for e-payment of custom duty ACY-
the Maharashtra State taxes are collected through integration in Govt.
Revenue Accounting System (GRAS) both online and across the counters.
The Bank has added Karnataka and Delhi states for collection of state
Government commercial taxes. Bank is offering its services in VAT
Collection in U.P in all branches.
2.13 Non Interest Income
The non-interest income stood at X 894.19 crore for the year ended
31.03.2014 as against X 912 crore for the year ended 31.03.2013.
Non-interest income (other than profit from sale of investment),
increased by X 23.20 crore in the FY 2013- 14, showing a growth of
3.02 ACU- over previous year. During the year, income from commission,
exchange and brokerage increased by X 53.48 crores from X 491.34 to X
544.82 crores.
2.14 Income, Expenditure and Profitability
The total income of the Bank grew from X 10525.43 crore to X 12850.85
crore indicating a growth of 22.09 per cent during the year.
The detailed income/ expenditure components are as under:
(Rs. in crore)
Particulars 2013-14 2012-13 Variation
(per cent)
Interest / discount on 9187.15 7298.50 25.88
advances / bills
Income on investments 2543.03 2231.28 13.97
Interest on interbank
lending ACY- 226.48 83.65 170.74
other Interest
Total interest income 11956.66 9613.43 24.37
Non-interest income 894.19 912.00 -1.95
Total Income 12850.85 10525.43 22.09
Interest on deposits 7697.04 5879.25 30.92
Interest on borrowings 107.93 312.27 -65.44
Other Interest expenditure 642.76 388.57 65.42
Staff expenses 1595.76 1187.82 34.34
Other Operating expenses 800.99 608.82 31.56
Total Non interest expenses 2396.75 1796.64 33.40
Total Operating Expenses 10844.48 8376.73 29.46
Operating Profit 2006.37 2148.70 -6.62
Provisions and Contingencies 1620.40 1389.18 16.64
Net Profit 385.97 759.52 -49.18
2.15 Financial ratios
Particulars 2013-14 2012-13
EPS (Rs.) .56 11.88
Cost to Income Ratio (percent) 54.43 45.54
Return on assets (percent) 0.30 0.74
Return on equity (per cent) 5.93 17.32
Book value per share (Rs.) 66.69 67.10
Profit per Branch(Rs. in lakh) 20.42 43.95
Profit per employee (Rs. in lakh) 2.68 5.59
Business per Branch (Rs. in crore) 109.61 98.80
Business per employee (Rs. in crore) 14.39 12.56
Interest income as per cent to
Average 9.24 9.33
working funds
Non Interest income as per
cent to average 0.69 0.88
working funds
Net Interest Margin (per cent) 2.71 3.10
Operating Profit as per cent
to average 1.55 2.08
working Funds
Staff expenses as a percent
to average 1.23 1.15
working funds
Dividend (per cent) 10.00 23.00
Net worth (Rs. Crore) 6184.11 5026.57
CRAR ( ACU-) (Basel II) 10.79 Nil
Of which, Tier I CRAR ( ACU-)
(Basel II) 7.44 Nil
2.16 Capital from Government of India
During the year, the Bank received equity share capital amounting to X
800 crore (including share premium of X 622.38 crore) from Government
of India (GOI) through allotment of shares on preferential basis. With
capital infusion, the share holding of GOI in equity share capital
increased to 85.21 ACU- as on 31.03.2014.
2.17 Net worth
The Bank''s Net worth increased from X 5026.57 crore as on 31.03.2013 to
X 6184.11 crore as on 31.03.2014.
2.18 Capital Adequacy Ratio
The Capital Adequacy Ratio stood at 10.79 per cent as on 31.03.2014,
against the minimum 9 per cent prescribed by RBI in terms of Basel III
norms. The Common Equity Tier I capital adequacy ratio stood at 7.44
per cent.
2.19 Dividend
The Board has recommended X 1 per share (10 ACU-) being interim dividend as
final dividend for FY 2013-14.
3. ORGANISATION AND SUPPORT SYSTEM
3.1 Branch Expansion
During the year, the Bank opened 162 new branches, the largest number
of branches opened by the Bank in a financial year since inception. As
on 31.03.2014, the total branch network comprised of 1890 branches
spread over 29 states and 4 union territories. The branch network
includes specialized branches in the areas of foreign exchange.
government business, treasury ACY- international banking. industrial
finance, small-scale industry and hi-tech agriculture. pension
payment, pension processing, retail credit, Self Help Groups and asset
recovery.
Area wise classification of branches as on 31.03.2014 is given in the
table below:
Sr.
No. Classification As on 31.03.13 As on 31.03.14
1 Rural 591 648
2 Semi-Urban 357 424
3 Urban 344 368
4 Metropolitan 436 450
Total 1728 1890
3.2 Human Resources Management
The Bank has put in place a comprehensive HRM Policy that provides the
road map for acquiring appropriate ACY- need based human resources, its
development through training, job enrichment, reward and recognition
for better performance, career progression, welfare and retention.
During the year the Bank recruited 1224 probationary officers and 10
law officers. The Bank has also recruited 487 Clerks during the year.
Inter scale promotions of officers were carried out for promotions to
Scales MMGS II and above. Total 1237 officers were promoted to higher
scales.
The cadre wise staff position shows that there is net addition of 776
employees during the FY 2013-14. The particulars are as below:
S.
No. Particulars March 2014 March 2013
1 Executives 514 418
2 Officers 5576 4589
3 Clerks 5867 6065
4 Sub Staff 2439 2548
Total 14396 13620
To recognize outstanding performance in Banking activities and to
motivate others to perform better, various schemes like Performance
Linked incentives to all staff of Best Performing Branches etc. are in
vogue. Tamiya Branch (Jabalpur Zone) has been awarded the Rolling
Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar for Excellent
Performing Branch Category in disbursement and recovery of advances to
SC/ST community.
During the year, 1053 employees ceased to be in service on account of
retirement, resignation, termination and death.
The Bank has been allocating up to 3 per cent of its net profit towards
various schemes for the welfare of staff including retired staff. The
welfare schemes are administered by a Central Welfare Committee
consisting of management ACY- employees representatives.
The Bank has endeavored to promote a healthy industrial relations
climate through fair, transparent and firm handling of Industrial
related matters.
The Bank has been complying with the reservation policy of Govt, of
India. Special Cells at Head Office and all Zonal Offices are
functioning to monitor the implementation of the reservation policies
and to redress grievances of SC/ST/OBC ACY- Physically challenged
employees as well as ex-servicemen. The Bank has designated Chief
Liaison Officers at Head Office and has set up SC/ST Cells at each of
its 34 Zonal Offices for the purpose. During the year periodical
meetings were held with SC/ST/OBC Employees Association to discuss
implementation of reservation policy and other constitutional safe
guards and also to facilitate involvement in business growth. Similar
meetings were also held at Zonal level.
The number of employees belonging to different categories is as under:
Sr. Category of Employees No. of Percentage
No Employees to total
1. Women 3767 26.17
2. Physically Challenged 188 1.31
3. SC Employees 2788 19.37
4. ST Employees 1091 7.58
5. OBC Employees 1738 12.07
Rosters have been maintained as per Government guidelines and are
regularly inspected/ checked.
Training Activities:
The Bank has a training system which facilitates attention to regular
periodic assessment of skill gaps at various levels in relation to
existing and emerging business opportunities. Skill building in credit,
forex, customer relationship management, marketing of products and
services, credit monitoring and recovery, risk management, technology
based banking, branch management, complying with statutory, legal and
policy requirements and preventive vigilance received special attention
during the year.
The training programmes were also held on thrust areas like financing
SMEs, retail lending, agriculture finance and rural development.
The Bank has an apex Training College at Pune with three training
establishments operating under it, one each at Mumbai, Nagpur and Pune.
Information Technology Training Institute and Computer Labs train the
Officers and staff to utilize information technology for effective
customer service and efficient back office functions.
The highlights of training activity during the year are as under ADs-
- 322 training programs were conducted during the year out of which 111
were for officers, 153 were for clerks and 58 were for sub staffs.
- Total of 8661 staff members participated in various training
programs, consisting of 5429 officers, 2139 clerks and 1093 sub staff.
- A total of 917 SCs, 315 STs and 1207 women employees were trained
during the year.
- During the year 1461 employees were trained in Information
Technology.
- In addition, 2024 employees were deputed to different external
training establishments.
- 11 Executives were deputed to Training Institutes outside India for
International Exposure.
- 7 programmes for pre- promotional training to SC/ST employees were
conducted during May - June 2013. Total 298 candidates attended the
training.
- 4 programmes on Pre retirement counseling were conducted for the
employees retiring during the year. Besides lecture on investment
planning, health check up of participants were also arranged.
3.3 Technology Initiatives
The year 2013-2014 has been a milestone year for the Bank as far as
technology implementation and up-scaling is concerned. During the year,
Bank expanded its ATM Network from 692 ATMs to 1827 ATMs, covering
nearly all the 1890 Branches of the Bank. The implementation of Bank''s
Own ATM Switch commenced during the Year and has been implemented LIVE
from 08th May 2014. Bank has been in the forefront of Technology in
Business ACY- related activities.
Bank has a state-of-the-art Tier III Data Centre and Disaster Recovery
(DR) Centre. A Near DR Site is also established to help the Bank
achieve Zero Data Loss Objective, in the event of any untoward
incident. We are one of the few Public Sector Banks to implement Near
DR Site over last two years. The efficacy of Near Site is tested twice
a year during DR Drills conducted by the Bank.
Bank has its own Corporate Network ACI-MAHANET ACI- with all Branches,
Zonal Offices, Training Colleges / Centers and Head Office interconnected
and working under Core Banking Platform. Its robust ACY- secure Network
Technology Architecture ensures seamless services to the customers.
During the year 2013-14, the process of migration of the network to
highly redundant and reliable Multi Protocol Label Switching (MPLS)-
VPN (Virtual Private Network) based architecture has been completed.
With this, we are sure that the Bank''s new network is scalable so as to
serve our customers even better and introduce more customer centric
applications. Bank has also pioneered in implementing niche network
technologies such as 3G, CDMA, etc as back up communication media to
ensure high availability to the branches.
Bank is having two ATM Galleries, one in Bajirao Raod ACY- one in Shivaji
Nagar, set-up with a view to provide integrated technology services
under one roof.
Bank has collaborated with VISA for International Debit Cards and with
NPCI for Rupay Debit Cards. Bank has also been the first Bank to launch
Rupay Kisan Debit Card - a Government of India initiative.
The payment and settlement systems viz., RTGS and NEFT are running on
robust platform facilitating straight-through- processing (STP) model.
In order to promote e-transactions ACY- popularize the usage of NEFT
Transactions, the service charges on NEFT transactions up to X 1.00
Lakh are waived.
The Bank is taking special efforts to encourage transactions through
alternate channels such as ATM, RTGS / NEFT Internet Banking, Mobile
Banking, ECS etc. More than 40 percent transactions are now being
carried out by customers through these alternate channels. Bank is
constantly pursuing efforts to enhance usage of these channels through
various incentive schemes which have been implemented during the year.
Various facilities are being provided through our Internet Banking
platform for facilitating online payment of taxes, utility bill
payments, online shopping / e-commerce, railway reservation, LIC
premium payment, etc and facility for viewing tax credit statement 26AS
and Demat account with the Bank.
As a part of the effort to respond to the ever evolving information
security trends and the responsibility to enhance security features in
the Internet Banking facility, Two Factor Authentication (2FA) Solution
for Retail Users ACY- active Corporate Users is rolled out.
Bank has robust Information Security Management System (ISMS) framework
in place. Its information security policy statement being: ACI-Bank of
Maharashtra is committed to protect and safeguard the critical
information of all stakeholders in order to ensure secure business
operations ACI-
In order to strengthen the ISMS framework further, Bank had gone for
ISO 27001:2005 Certification for its IT division including Data Center,
Disaster Recovery Center and CBS Project Office. Bank has ensured
continuation of the ISO 27001:2005 certification for the year 2012-13
and now 2013-14 as well.
Bank has in place a captive Security Operations Centre (SOC) for
monitoring Critical IT Infrastructure on 24 x 7 basis. The SOC shall
enable the Bank to effectively address security threats by constant,
proactive monitoring of security events and meet the compliance
requirements. This has enabled the Bank to automate the vulnerability
discovery process by constantly analyzing the logs generated by the
core IT security and application infrastructure. The other services
namely Anti- Phishing ACY- Anti-Trojan services are also implemented.
As a part of Customer Initiatives, online facilities are made available
to customers for opening of savings bank accounts and also accounts
under New Pension Scheme. Bank has also made available facility for
submitting applications online for various credit facilities including
Housing, Education, Vehicle, MSME, Consumer and any other Loan product
(Generic application to accommodate any other credit facility
requirement of the customer).
Bank has launched a plethora of New IT products/services for Customers
like Cheque Deposit Machines, Digital Media Signage, Queue Management
Solution (PoC Basis), Standardized Public Grievances Redress System
(PGRS) Software, Software for Searching Branch ACY- ATM Locations of the
Bank, SMS to renewed Card Holders, e-Pact New Pension Scheme (NPS) LITE
Software, POS Usage enabled for all Rupay Cards etc.
Implementation of Biometric Authentication for Branch Staff is taken up
and expected to be completed by 31/05/2014.
Automated Data Flow, an RBI Initiative, has been implemented LIVE from
31/12/2013, as per RBI Timelines.
Cheque Truncation System has been implemented at all 27 Centres under
Southern Grid ACY- 20 Centres under Western Grid including Mumbai.
Bank has implemented own Business Correspondent Model at Solapur. Under
this model we have provided 1000 Micro ATMs to all Regions of the Bank
ACY- implementation is in progress.
All the branches of Maharashtra Gramin Bank, the Regional Rural Bank
sponsored by the Bank are working under CBS since 2011 ACY- are
implementing various initiatives to be in tune to meet the demands of
customers and business development.
Bank proposes to take up following new IT Initiatives during 2014-15.
- Newer / Evolving Branch Transformation Initiatives with focus on
enhancing customer experience. Centralization of Liability Processing
Centre (CLPC) / Asset Processing Centre (CAPC).
- Work towards establishment of Enterprise-Wide Data Warehouse,
Business Intelligence ACY- Analytical CRM.
- New - generation Mobile Banking application that can work with
variety of mobile phones ACY- platforms and provide secure transactions.
- Upgrade of Bank''s Call Centre to a complete inbound and outbound call
center.
- E-Surveillance System to cover all ATMs.
Project ACI-Utkarsha ACI-
Bank has taken a novel step in the month of July, 2013 by forming a new
department by name ACI- Department of Strategic Initiatives ACI-. The
project is named ACI-Utkarsha ACI- and is a business transformation
programme. Bank has engaged EY as consultants for the transformation. A
team of 12 officers headed by an AGM is also formed to undertake this
project. Time lines and the scope of work are defined and the expected
time for the project completion is 18 months. The objective of Utkarsha
is to draw a strategic roadmap and align Bank''s operating model to emerge
as a more competitive, agile and efficient player. Project ACI-Utkarsha
ACI- encompasses six core elements namely Branch Transformation,
Centralization and Business Process Re-engineering, Sales Enablement
for retail and SME loans, Alternate Channels, Human Capital and Capital
Efficiency.
The Outline of the Transformation Program ACI-Utkarsha ACI-
- Grow Rapidly
- Identify key drivers for growing deposits and advances business
- Revamp sales structure and augment skill-set to improve sales
efficiency and effectiveness
- Identify opportunities to streamline processes, aggregate non-core
processes at back-end and enhance productivity
- Design an efficient operating model to ensure business growth is not
achieved at expense of efficiency
- Optimize costs with rising scale of business, increase share of
fee-based income and improve productivity to enhance profitability
- Create a roadmap to ensure capital efficiency
3.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service to ensure
customer satisfaction throughout the year.
As member of the Banking Codes and Standards Board of India (BCSBI)
Bank has adopted the Code of Bank''s Commitment to Customers and Bank''s
Code of Commitment to SMEs. Duly documented policies approved by the
Board on ACI-Deposits ACI-, ACI-Collection of Cheques/ instruments
ACI-, ACI-Redressal of Grievances ACI-, ACI-Compensation ACI- and
ACI-Operational Procedure for settlement of claims of Deceased Depositors
ACI- are in place.
The Committee of the Board on Customer Service meets periodically to
monitor the quality of customer service. redressal of customer
grievances to ensure customer satisfaction. The Standing Committee on
Customer Service at Head Office and Zonal Level Customer Service
Committees at all the Zonal offices also meet regularly to address and
review various customer related matters to take steps for improvement
on an ongoing basis.
Customer Service Committees at all the branches are formed and a cross
section of customers representing depositors, Corporate, businessmen,
senior citizens are invited to attend the Customer Service meetings at
Branch/Zonal/Head Office level, to have feedback and suggestions on
schemes, products and services. Full-fledged grievances redressal
machinery is in place to respond promptly to customer grievances.
Complaint Management Cells are operative at Head Office and all Zonal
Offices of the Bank. The Committee of the Board on Customer Service and
Standing Committee on Customer Service at Head Office monitor the
progress of redressal of customer grievances regularly.
The Bank has implemented all major recommendations of Goiporia
Committee, Dr.S.S. Tarapore Committee and Damodaran Committee relating
to customer service.
The Bank has in place internet based mechanism for lodging the
complaint or to give suggestions/ feedback on services by the customers
and for providing acknowledgement and status of their feedback/
complaint.
Bank has printed folder called ACI-My Folder ACI- containing all customer
service policies, information on service charges, guidelines on
Government Schematic Loans, Ombudsman and BCSBI codes. The same is
printed in Marathi, Hindi and English and supplied to all branches and
Zones for making the same available to all customers on demand.
Standardized Public Grievances Redressal System:
Bank is in process of implementing ACI-Standardized Public Grievances
Redressal System (SPGRS) ACI- introduced by GOI, MOF, Department of
Financial Services, New Delhi on 11.06.2012. I T Department and
Planning Department in Head Office are developing In House software for
Integrated Public Grievances System.
Installation of Kiosk Machine for online registration of complaints:
Kiosk Machine arrangement has been made at Head Office to enable the
customers to register on line complaints/ suggestions, and its
operation is started w.e.f. 14.03.2013.
3.5 KYC/AML
Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards
/ Combating of Financing of Terrorism (CFT) and Obligation of Bank
under Prevention of Money Laundering Act (PMLA) 2002.
The Bank has Board approved KYC-AML-CFT Policy in place. The said
Policy is the foundation on which the Bank''s implementation of KYC
norms, AML standards and CFT measures is based. The full KYC compliance
entails staff education as well as customer education for which the
following measures are taken by the Bank.
A comprehensive list of KYC documents is uploaded on the Bank''s web
site for the benefit of customers. Regular training sessions are
conducted on KYC-AML-CFT guidelines at the Bank''s training
establishments to sensitize the employees.
3.6 Risk Management
Banks are faced with a variety of risks while conducting day to day
banking operations. Bank has its Risk Management Frame work in
accordance with the RBI Guidelines and benchmarks itself against the
industry best practices. This enables the Bank to identify, measure,
monitor and manage risk efficiently.
The Board of Directors of the Bank reviews all Risk Management Policies
and Strategies and establishes control systems in line with the Bank''s
aggregate Risk Appetite. The Board of Directors is supported by the
Risk Management Committee of the Board (RMC) and RMC is supported by
sub- committees known as Credit Risk Management Committee (CRMC),
Market Risk Management Committee (MRMC), Operational Risk Management
Committee (ORMC) and Asset Liability Management Committee (ALCO). These
Committees are headed by Chairman and Managing Director. Executive
Directors and General Managers are the members of the Committees.
Risk Management Policies
In order to provide ready reference and guidance to field
functionaries, Bank has put in place various Board approved Risk
Management Policies viz. (i) Credit Risk Management Policy, (ii) Market
Risk Management Policy, (iii) Asset Liability Management Policy, (iv)
Operational Risk Management Policy, (v) Stress Testing Policy, (vi)
Outsourcing Policy, (vii) Business Continuity Planning Policy, (viii)
Disclosure Policy, (ix) Utilization of Credit Risk Mitigation
Techniques and Collateral Management Policy ACY- (x) Internal Capital
Adequacy Assessment Process (ICAAP).
Credit Risk Management
Credit risk is the possibility of a loss being incurred as the result
of a borrower or counterparty failing to meet its financial obligations
or as a result of deterioration in the credit quality of the borrower
or counterparty. Effective credit risk management is a structured
process to assess, measure, monitor and manage risk on a consistent
basis. This requires careful consideration of proposed extensions of
credit, the setting of specific limits, monitoring during the life of
the exposure, active use of credit mitigation tools and a disciplined
approach to recognizing credit impairment. The Credit Risk Management
process forms an integral part of overall risk management of the Bank.
The Bank has constituted Credit Risk Management Committee (CRMC) which
reviews the policies, procedures and systems relating to credit
administration and monitoring, at periodic intervals.
The Bank has put in place comprehensive Lending Policy, Loan Review
Policy and Credit Risk Management Policy for credit risk management.
The policies prescribe various guidelines, procedures, standards and
prudential / exposure norms.
To evaluate the risk perception in a lending proposition, the Bank has
put in place an in-house developed Credit Risk Rating Framework (CRRF)
for rating of existing as well as entry level borrowers in various
asset classes, as desired under Basel III. In house developed rating
model in TIBD is also in use to rate Non-SLR Investments. The Bank
utilizes industry risk rating from reputed credit rating agency and
incorporates the industry risk score in the CRR Models. Bank also uses
the rating assigned by RBI approved external credit rating agencies in
its credit decision.
The Bank has prescribed threshold ratings for entry level exposures
with a view to building up credit portfolio within the risk appetite
and achieves the profit plan. With a view to separating the Credit Risk
Management function from credit sanctioning, Credit Risk Rating
Approval Grids are set up at various levels at Head Office and at
Treasury ACY- International Banking Division (TIBD), Mumbai which assess
the risk perception through a committee approach.
The Bank has undertaken migration analysis of credit risk rating of
borrowers over a time horizon and probability of default has been
estimated in line with Basel requirements. To achieve risk-return trade
off, risk based pricing framework has been implemented and reviewed
periodically.
The Bank undertakes following studies periodically to assess Credit
Risk:
Compliance to Prudential Norms as per Lending Policy
Credit Portfolio Review
Assessment of Concentration Risk in Assets ACY- Liabilities
Quick Mortality of Loans and Advances
Country Risk Management
Aggregate exposure on other banks
Stress Test Report - Credit Risk
Finding of these studies are placed before the Credit Risk
Management Committee (CRMC), Risk Management Committee (RMC) and the
Board on periodical basis.
Market Risk Management
Market Risk is the risk to the Bank resulting from adverse movements in
market prices due to changes in interest rates, foreign exchange rates
and equity price. The changes impact the Bank''s earnings and capital
and can have ramifications on the Bank''s liquidity and profitability.
Bank has its separate Market Risk Management Committee which reviews
Market Risk Management Policy on regular basis and reports
modifications, if any, to the Risk Management Committee ACY- the Board for
approval. The Bank''s Market Risk Management Policy aims to set out the
broad processes i.e. by which the Bank will identify risks in the areas
of Interest Rate Risk, Forex Risk, Equity Price Risk and Options Risk.
Reporting framework has been prescribed for internal reporting,
Regulatory reporting and Pillar III disclosures.
Interest Rate Risk Management
Interest rate risk is the risk where changes in market interest rates
affect a bank''s financial position. Changes in interest rates impact a
bank''s earnings (i.e. reported profits) through changes in its Net
Interest Income (NII) and also impact a bank''s Market Value of Equity
(MVE) or Net Worth through changes in the economic value of its rate
sensitive assets, liabilities and off-balance sheet positions. The
interest rate risk, when viewed from these two perspectives, is known
as ''earnings perspective'' and ''economic value perspective'',
respectively.
Accordingly, Bank uses the following tools to manage interest rate
risk:
1. Traditional Gap Analysis (TGA) which is undertaken through the
preparation of Interest Rate Sensitive Gap Reports on a monthly basis.
2. Earning at Risk: Calculation of impact on NII due to 1 ACU- change in
interest rates. It also takes into account Basis Risk, Embedded Option
Risk, Yield Cure Risk, Net Interest Position Risk, Price Risk and
Reinvestment Risk.
3. Duration Gap Analysis (DGA) which focuses on the bank''s exposure to
Interest Rate Risk in Banking Book (IRRBB) in terms of sensitivity of
Market Value of its Equity (MVE) to interest rate movements.
4. Modified Duration: Considering the interest rate risk in the
portfolio, the Bank has set upper limits of Modified Duration for
AFS HFQ- category and also the upper limit for total investment
portfolio.
5. Value at Risk: Value at Risk (VaR) for treasury positions is
calculated for 1 Day, 10 Days and 30 Days for 99 ACU- Confidence Level.
The Bank has constituted Asset Liability Management Committee (ALCO),
which meets at regular intervals to review the interest rate scenarios,
liquidity positions in the banking book etc. The ALCO manages and
supervises Liquidity Risk through review of rates of interest on
deposits / advances. ALCO also monitors adherence to various risk
limits and determines the business strategy in light of prevailing
interest rate scenario and liquidity position in the market with a view
to optimizing profit and overall balance sheet management while
managing interest rate risk.
The ALM Policy, which is reviewed annually, prescribes the parameters
for management of Liquidity Risk, Interest Rate Risk, etc.
Investment Risk is managed through the prescriptions made in the
Investment Management Policy ACY- Investment Risk Management Policy.
Management of Foreign Exchange Risk, prudential limits for open foreign
exchange position, aggregate gap position, Daylight limit, Overnight
limit, Net Open Overnight Position. Stop loss limit, Limit for
undertaking swaps/investment/ borrowing overseas, interbank exposure
limits etc. have been put in place. These limits are monitored
regularly.
The ''Liquidity Risk is measured and managed through ''Gap analysis'' for
maturity mismatches by reviewing structural liquidity position on daily
basis and short term dynamic liquidity on fortnightly basis. Bank is
conducting behavioral studies in GAP analysis. Stress testing is
undertaken periodically.
Operational Risk Management
Operational risk is the risk of loss resulting from inadequate or
failed internal processes, people or systems or from external events.
Bank''s primary aim is the early identification. recording, assessment,
monitoring, prevention and mitigation of operational risks, as well as
timely and meaningful management reporting.
The Operational Risk Management Committee (ORMC) meets regularly to
review the matters related to operational risk. Under the Operational
Risk Management Framework and ORM Policy, Bank is identifying,
measuring, monitoring and controlling/mitigating operational risks by
analyzing historical loss data, Risk and Control Self-Assessment
Surveys (RCSAs) and Key Risk Indicators (KRIs). The Bank has put in
place policy on Business Continuity Planning. A policy on outsourcing
is also formulated which facilitates use of expertise available in the
market with adequate safeguards against risk associated with
outsourcing.
Under the Risk based supervision, Risk Profile Template covering five
business risks and two control risks are prepared on quarterly basis
and submitted to RBI.
Rating of the branches is done under Risk-based Internal Audit (RBIA)
and the position is reviewed every quarter.
Implementation of Advanced Approaches of Capital Computation
The Bank will enhance its Risk and Capital Management capabilities by
migrating to the Advanced Approaches of the Basel framework. Advanced
approaches include Foundation and Advanced Internal Ratings Based
Approach (''FIRBA ACY- ''AIRBA) for Credit Risk, Standardized and Advanced
Measurement Approach (TSA ACY- AMA) for Operational Risk and Internal
Models Approach (''IMA) for Market Risk.
3.7 Internal Control Systems
Inspection ACY- Concurrent Audit:
The Inspection and Audit system ACY- various measures of internal control
are adopted by the Bank to ensure identification /assessment and
mitigations of operational risks.
Internal Audit of branches:
As per Seth Committee guidelines the Bank is conducting Risk Based
Internal Audit of the branches. RBIA of all the branches which were due
for RBIA during the year, were conducted while complying with the
Jilani Committee recommendations. It was endeavored that the top 200
branches in advances terms of the Bank are covered under RBIA during
the year.
During the year the Bank has implemented some strategic decisions so as
to strengthen the internal control system such as,
- Commencement of Off-site monitoring system in which reports on some
important/sensitive areas are extracted from the CBS system on
daily/weekly/monthly basis so that necessary timely
rectification/action can be taken.
- On the spot rectification of at least 51 ACU- irregularities during the
course of inspection itself in the branches.
- Implementation of Document mechanization system.
- Initiating the process of Web Based application system so as to
improve Branch Inspection, Concurrent Audit system and Off-site
surveillance.
During the year the Bank also organized conference of all Inspecting
Officials and Heads of Inspection Cells so as to update them on
policies, procedures, business environment, opportunities and
challenges for banks, emerging areas of risks and their role in
alerting the Top Management of existing and impending risks at
branches and offices.
Surprise Inspection:
Surprise Inspection of 23 branches, focusing mainly on high risk areas
was also carried out in pursuance of Ghosh Committee Recommendations.
All the 23 reports are closed.
Concurrent Audit:
As per approved Audit Plan for 2013-2014, 418 branches and three
departments of the Bank are covered under Concurrent Audit covering
about 75.78 ACU- of Bank''s total business.
Income ACY- Expenditure Audit (I. ACY- E. Audit):
I. ACY- E. audit is carried out at 180 branches as per approved plan for
the period 01.10.2012 to 30.09.2013 having total business above X 25.00
crore ACY- advances above X 5.00 crore.
Expenses Audit of Zonal Office:
In order to have control over expenditure at Zonal Offices a system has
been put in place through half yearly Expenses Audit for every March
and September half years. The expenses audit of 34 Zones were conducted
as of 30.09.13.
Snap Audit:
The Bank has also initiated the process of Snap audit of select
branches where the growth in advances is inconsistent or especially
contrary to the past trend.
Management Audit:
For assessing their effectiveness of Zonal Offices and different
departments in the Head Office in terms of supervision and control,
Management Audit of 17 Zonal offices and 16 departments at Head Office
was carried out during the year.
RBI Inspection under Section 35 of the Banking Regulation Act:
The Bank was also subject to RBI inspection under Section 35 of the
Banking Regulation Act besides that two branches were also inspected
during the year.
AML:
Bank has also reviewed the AML parameters as per IBA guidelines and
Prevention of Anti Money Laundering Act. In order to ensure efficacy of
the AML system, a centralized AML Cell has been established at Head
Office.
3.8 Vigilance
Vigilance activity in the Bank is an integral part of the managerial
function. Its objective is to enhance the level of managerial
efficiency, effectiveness and to ensure a proper climate for an
efficient administration, where officials can perform the duties
without any fear or favor. ''Vigilance'' in the Bank is maintaining a
proper balance between flexibility and accountability.
Preventive Vigilance is the most important aspect of vigilance. With a
view to improve functioning at all levels, the Bank has taken several
necessary steps. ''Fraud Risk Management Policy'' on prevention,
detection, classification and reporting of frauds including action to
be taken, has been adopted by the Bank and circulated for the guidance
and use of the branches and field functionaries.
''Vigilance Manual'' has been issued by the bank and various aspects of
vigilance and other related issues have been dwelt upon for information
and necessary action of the field functionaries.
3.9 Compliance
The Bank has put in place a Compliance Policy, based on the guidelines
of Reserve Bank of India. The Compliance Department, headed by the
Chief Compliance Officer monitors the compliance functions. It ensures
the implementation of the statutory/regulatory guidelines coming into
force from time to time. The issues relating to regulatory/ statutory
compliances are addressed appropriately. The status of compliance is
placed for review to the Top Management / Audit Committee of the Board
periodically. To improve the awareness on the compliance functions in
the Bank, sessions are appropriately included in various training
programmes arranged for the officers /staff members.
3.10 Marketing ACY- Publicity
With a view to publicize Bank''s various products and also brand image
coupled with corporate social responsibilities, Bank has sponsored
various programs like ACI-Sponsorship to BWF Badminton world super
series ACY- Ashian Athletics Championship ACI- ACI-Connotation on
Global warming ACI- ACI-Sponsorship for Mobile dispensary/Dialysis
machine ACY- other medical equipments ACI- ACI-Child Development Centre
ACY- Health camps for SHGs ACI- ACI-Project Spinal injury centre ACI-
etc. Bank has also donated towards relief fund to Flood ACY- Cyclone
affected people and development of Tribal villages.
3.11 Citizen''s Charter
The Bank has adopted the Charter since 2000-01, which details the
duties and responsibilities of the Bank towards its customers. The
Charter is displayed at all the branches and at the website and has
been updated from time to time. The Bank has also adopted a Citizen
Charter of RBI on exchange of notes and coins.
4. SOCIAL BANKING
4.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable
and sustainable economic development by timely and hassle-free
availability of credit for productive purposes to Small and Marginal
Farmers, Micro ACY- Small Enterprises, Retail Traders, Professional
ACY- Self Employed, Women Entrepreneurs and entrepreneurs from
economically weaker sections.
The outstanding advances under Priority Sector as of 31st March 2014
aggregates to X 32010.68 crore, constituting 41.99 ACU- of the Adjusted
Net Bank Credit.
The rise in Priority Sector Advances in absolute terms is X 7291.32
crore over previous year March 2013, resulting into growth of 29.50
ACU- on y-o-y basis.
4.2 Agriculture
The Bank disbursed X 5909.54 crore for agriculture and allied
activities during the year 2013-14. The total outstanding advances to
agriculture sector have shown a growth of 28.89 per cent on y-o-y
basis, to reach a level of X 10276.07 crore as on 31.03.2014.
The Bank undertook awareness/sensitization programmes for all the
branches for increasing advances to agriculture by providing hassle
free credit to farmers.
4.2.1 Mahabank Kisan Credit Card (MKCC)
This scheme gained popularity especially in rural areas where it is
being propagated successfully and vigorously. The Bank has issued total
470762 Kisan Credit Cards to farmers. Credit flow to MKCC
beneficiaries has reached to the level of X 4312.60 crore as on
31.03.2014, registering a growth of 42.83 ACU- on y-o-y basis.
4.3 Micro, Small and Medium Enterprises (MSME)
SMEs are recognized as a major growth engine for the Indian economy.
They generate opportunities for direct and indirect employment by
facilitating use of natural resources and local skills to stem the tide
of migration to urban areas and promote low investment enterprises.
Finance is made available to viable enterprises at an attractive and
low rate of interest. On line enquiry portal is made available on the
Bank''s website during the year.
The Bank has adopted Simplified Loan Application for MSEs and the same
is displayed on the Bank''s website. The Bank has also adopted Bank''s
Code of Commitment to Micro and Small Enterprise and it is displayed on
the Bank''s website.
The Bank''s lending to Micro, Small and Medium Enterprises which was at
the level of X 11288.92 crore as at 31.03.2013, increased to X 15098.25
crore as at 31.03.2014, which translates into a y-o-y growth of 33.74
per cent.
Mahabank MSME centres - Centralized Processing Cell have been set up
for speedy disposal of MSME proposals at Pune, Hyderabad, Delhi and
Chandigarh.
4.3.1 Maha-Entrepreneur
Under the scheme, the Bank is providing for supporting SMEs in rural
areas finance up to X 100.00 lacs to Micro and Small Enterprises
without Collateral Security and/ or Third Party Guarantee.
Accounts under the scheme are covered under Credit Guarantee Fund
Scheme for Micro, Small and Medium Enterprises of Government of India.
The Bank is bearing 50 ACU- annual guarantee fee for loans above X 10.00
lakh ACY- entire annual guarantee fee for loans below X 10.00 lakh. The
Bank sanctioned loans of X 1040.37 crore to 11,436 borrowers under this
scheme up to March 2014. During the current FY coverage under Credit
Guarantee Fund Scheme has increased by 36.11 ACU-.
5. IMPORTANT SCHEMES/PROJECTS OF THE BANK
5.1 Credit Flow to Retail Sector
The Bank is providing retail loans to salaried persons, professionals,
businessmen and pensioners for purchase of consumer durables, two/four
wheeler vehicles and also for other personal needs.
5.1.1 Centralized Processing of Retail loans:
There are 14 Retail Asset Branches and 18 Retail Processing Centers
covering all the Zones for hassle free and quality disbursement of
retail loans.
5.1.2 Mahabank Gold Loan Scheme
Gold ornaments are the traditional and inherited form of savings among
the people in India. Being one of the most liquid and precious asset,
it serves as a dependable and acceptable form of security to raise
loans for meeting immediate financial needs for business, agricultural.
consumption purposes such as marriage, medical, educational expenses
etc. With a view to meet the credit requirement of our customers, Bank
has launched a new retail loan product ACI-Mahabank Gold Loan Scheme ACI- w.
e. f. 01.11.2010. The total portfolio of Gold Loan of our Bank is X
624.62 crore.
5.1.3 Mahabank Top-Up Loan Scheme
In order to extend additional credit support to our regular housing
loan borrowers, Bank launched another new Retail Loan product ACI-Mahabank
Top-Up loan scheme ACI- w.e.f. 01.11.2010.
5.2 Housing loan to public
The Bank has in place Housing Loan Scheme to meet the needs of all
economic segments including NRIs. Financing housing sector in rural and
urban parts of India is a thrust area. The Bank''s lending to housing
sector has grown by 34.63 percent during the year to reach the level of
X 8854.40 crore as of 31.03.2014. The Bank is also implementing Golden
Jubilee Rural Housing Scheme of the Government of India in rural areas
having population not exceeding 50,000. Bank is having online facility
to apply for housing loan, which has evoked positive response.
5.2.1 One per cent Interest Subvention on Housing Loan up to X 15.00
Lakh.
As per GOI guidelines, Bank has provided 1 ACU- interest subvention to
borrowers, who availed housing loans upto X 15.00 lakh costing worth
upto X 25.00 lakh. During the year 2013-14, 5941 borrowers benefited
under the scheme to the extent of X 5.50 crore.
5.3 Model Educational Loan scheme
With the objective of ensuring that all deserving students get
opportunity to pursue higher education, the Bank implemented a Model
Educational Loan Scheme. As of March 2014, the Bank had lent X 637.34
crore to 29,876 students. The Bank has provided the facility of
submission of application for education loan through web-access (on
line) also.
5.4 Micro Finance
The Bank has always recognized the importance of credit to rural and
urban poor for taking economic activity. The SHGs have proved to be
effective instruments for empowerment of women. Bank has specialized
SHG branches in all six lead districts and at Goregaon, Mumbai.
As on 31.03.2014, there were 108964 SHGs formed by the Bank, out of
which 97261 SHGs have been linked with the bank credit with outstanding
of X 160.71 crore as on March 2014.
5.5 Assistance to SC/ST beneficiaries:
The Bank has been actively extending finance to SC/ST beneficiaries
through various schemes. Total finance as on 31.03.2014 to SC/ST
beneficiaries stood at X 1511.80 crore, constituting 20.41 per cent of
advances to weaker sections.
5.6 Advances to Minority Community
A special cell has been set up at Central Office to review ACY- ensure
smooth flow of Credit to minority community. As of March 2014, the
outstanding advances to minority communities were at X 2258.72 crore to
102,106 beneficiaries.
5.7 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 ACY- Cheque Collection Services, at Clients'' Doorstep. The
Services has been initially introduced in Mumbai and Pune which is now
extended to all Centers except branches in the Bhopal Zone.
5.8 BOM SBI International Credit Card
Bank is offering Co-branded International Credit Card to its customer
under tie-up arrangement with SBI cards. The card is offered in two
variants viz.Platinum and Gold card. As on 31.03.2014, the outstanding
number of cards issued to its customer is 23861.
5.9 National Pension System (Swavlamban)
NPS Lite Swavalamban was made live in July 2013 and total 1806 branches
are registered as NLCC (NPS Lite Collection Centre) with NSDL for
collecting contribution under the scheme. 11833 accounts were opened
under the scheme up to 31.03.2014.
5.10 Tie Up
5.10.1 Empanelment as lead Generation agent for SHCIL.
Bank has entered into tie up arrangement with Stock Holding Corporation
of India Ltd. (SHCIL) in Maharashtra wherein Bank is empanelled with
SHCIL as the lead generation agent. The bank role is to popularize
e-stamping system across Maharashtra and provide information to
customers and guide customers to SHCIL office for their e-stamp
business.
5.10.2 Remit2india'' by ''Timesofmoney''
Bank has tie up with Timesofmoney for introducing remit2india an online
platform for remittance of funds by NRI customers.
5.10.3 Payment Gateway Facility
Bank has tie up with M/s India ldeas.com Ltd, M/s Avenues India Ltd.,
M/s Atom Technologies Ltd, M/s ibibo web Solution Ltd, M/s Citrus
Payment Solutions Pvt Ltd, M/s One 97 Communication Ltd, M/s EBS
payment System, M/s Techprocess Payment System, M/s Times of Money
Limited for facilitating e-commerce and utility bill payment facility
to its internet banking customers.
5.10.4 ECS Mandate and Direct Debit System
Bank has tied up with Bajaj Finance Ltd. and TVS Credit Pvt. Ltd for
ECS Mandate verification of Fresh Mandate and Direct debit system of
PDCs.
5.10.5 Online Fee Collection
Bank has entered into tie up with various Institutions during the year
where bank is getting commission on collection of fees for Institutes
from Branches. The bank is collecting online fee collection for Mumbai
University from the students appearing for external educational
programme. The Mumbai University selected Bank from the group of 5
Banks.
6. CORPORATE SOCIAL RESPONSIBILITY
The Rural Development Centres at Hadapsar and Bhigwan in Pune District
of Maharashtra have been undertaking various rural developmental
activities for the benefit of farmers viz. Lab to Land Project,
Re-development of Saline Soils, Soil Testing etc. Bank has established
Soil testing Lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil
Testing Laboratory has analyzed 8892 Soil ACY- Water samples in the year
2013-14 and accordingly counseling is done. Farmers from the districts
of Pune, Ahmednagar, Solapur and Satara are taking benefit of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development
Foundation (MARDEF) established by the bank, undertakes various
projects and village improvement programmes. MARDEF is imparting
training to farmers on various subjects in Agriculture, e.g. Dairy,
Goat rearing, Best practices in farming, Application of fertilizers,
Agriculture credit schemes, etc. MARDEF Trust has implemented 96
training programmes for farmers at RDC Bhigwan ACY- Hadapsar and has
benefited 5211 farmers from April 2013 to March, 2014.
The Bank has established Seven Mahabank Self Employment Training
Institutes (MSETI) for providing training to rural youth and women to
enable them to acquire skills for self- employment through small
business enterprises. The Institute has centers located at Pune,
Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has
so far imparted training to 12,666 educated unemployed youths. The
settlement rate is 67 per cent.
Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of
Maharashtra and National Institute of Bank Management is actively
involved in formation, nurturing, training and ensuring linkage of SHGs
to Bank Credit. The GMVBVM also helps SHGs in marketing products of
SHGs through outlet established in Pune City under the name ACI-SAVITRI ACI-.
The GMVBVM guides and actively helps SHGs for selection and purchase of
raw materials and quality production.
The Bank has opened Financial Literacy Centers in Six Lead Districts
namely Pune, Nasik, Aurangabad, Satara, Jalna ACY- Thane for creating
awareness about banking schemes.
Bank has helped various NGOs during the year extending financial
support to acquire necessary inputs for carrying their activities.
These include the following:
- Fixing of artificial limbs to the needy patients.
- Diesel Generator set for the school meant for physically challenged
children
- Building / classroom / Kindergarten equipments for the needy,
mentally retarded and cerebral palsy children, cancer patients and Old
age home.
- Conducting cancer detection camps in slums for the needy.
Moreover Bank has always stood for the cause of society by contributing
at large for improving medical facilities, vocational training, basic
amenities etc. Bank is also helping emerging sports persons at budding
stage by sponsorships and providing financial assistance to bring the
glory to the Nation and contributing to social cause.
7. LEAD BANK SCHEME
7.1 Lead Bank Scheme
Bank has Lead Bank responsibility in six districts of Maharashtra State
viz. Aurangabad, Jalna, Nasik, Pune, Satara ACY- Thane. Every year our
Bank is successful in achieving the targets under Annual Credit Plan
with achievement under various sub sectoral targets.
7.2 State Level Bankers'' Committee
Bank is the Convener of State Level Bankers'' Committee (SLBC) for the
State of Maharashtra. Quarterly meetings are held regularly. Detailed
discussions are held and implementation of various schemes like ACP
achievement, Priority Sector lending, financial inclusion and
Government Sponsored Schemes are reviewed. The performance of various
participants is monitored and guidelines are given to LDMs / Banks for
their improvement. A special SLBC meeting was convened which was
chaired by Hon''ble Chief Minister of the State. An ambitious ACP of X
1.00 lakh Crore was accepted, which is highest in the country. The
performance of SLBC was commended by Chief Minister. The crop loan
achievement for this year was 90 ACU-. SLBC has taken proactive steps for
supporting the farmers suffered due to Drought / Hail Storms by issuing
guidelines immediately and following up with all the implementing
agencies. SLBC has also taken a proactive step in providing the credit
to the farmers in all the districts where the DCCBs are not in a
position to lend by providing a major share of crop loans to Commercial
Banks.
As conveners of SLBC, Bank is also coordinating with all member banks
in implementing Direct Benefit Transfer. As Convener, bank has taken
special emphasis on opening of accounts and seeding of aadhaar numbers
of the DBT beneficiaries, in formation of 13,431 Sub service areas and
in coverage of all the sub service areas in DBT districts. SLBC has
also taken proactive role in implementation of DBTL scheme. Meetings
were held with District Authorities, OMCs and District Coordinators of
member Banks to ensure better coordination among these implementing
agencies. SLBC has also taken the lead in monitoring the progress for
making available the delivery channels such as opening of branches,
installation of ATMs and providing the services of Business
correspondent.
7.3 Aadhaar Initiatives
The Bank is acting as Non State Registrar (NSR) with Unique
Identification Authority of India (UIDAI) to assist authority for
enrolment of Aadhaar. For Aadhaar enrollment to the resident''s bank has
engaged agencies. Bank has enrolled more than 21 lakh Aadhaar numbers
with the help of these agencies Bank has taken the initiative for
seeding of Aadhaar numbers and has approached customers requesting them
for submission of their Aadhaar numbers. Aadhaar seeding is also done
through our ATMs and Internet Banking apart from requests received
directly. Due to these initiatives Bank is successful in seeding of
more than 26 lakh Aadhaar numbers.
7.4 Financial Inclusion Plan
Financial inclusion is one of the key agenda items of the Government as
well as Reserve Bank of India. Bank has taken Financial Inclusion as
business opportunity and has made banking services available in 6,713
villages of the State through innovative BC - ICT model. For this
purpose bank has appointed 2,472 BC agents of various agencies for
providing basic banking services as opening of bank accounts of
villagers, provide need based credit, remittance facilities and help to
promote financial literacy in rural India using various models and
technologies including branchless models.
Bank has opened 4,40,646 customers'' accounts through BC agents ACY- a
total of 28.43 lakh Basic Saving Bank Deposit Accounts (BSBDA) with an
outstanding balance of X 203.19 Crore. Bank has also made efforts to
make BC model sustainable by way of introducing card less technology
for FI customers. Bank has introduced AEPS - Aadhaar Enabled Payment
System (On us and Off us - Acquirer and Issuer) technology, both
functioning in the same POS machine. This has helped to increase the
number of transactions during the financial year. The number of
transactions increased from 0.95 lakhs to 4.66 lakhs during the year.
The amount increased multifold from X 2.93 crore to X 101 crore.
Govt, of India is implementing the scheme of Direct Benefit Transfer
(DBT). Under this scheme Govt. subsidies to the beneficiaries of 26
notified schemes are directly credited to the Aadhaar enabled bank
account of the beneficiary in 121 districts. Out of these 121 districts
we are operating in 71 districts with 632 branches. Under this scheme
Bank has the responsibility of three districts as lead districts. Bank
has ensured that all the beneficiaries under the scheme have their
account with the bank and their Aadhaar number received from the
district authority has been seeded to the accounts and uploaded with
NPCI server. Bank had arranged special camps for opening of accounts as
well as for enrolment of Aadhaar. Bank has also participated in
implementing DBTL program and ensured maximum Aadhaar seeding of the
beneficiaries.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by our
bank having its Head Office at Nanded, Maharashtra state. Total no of
branches as on 31.3.2014 stood at 378 in its area of operation covering
16 out of 33 districts of Maharashtra State.
All 378 branches ACY- controlling offices are now under CBS. During this
year, MGB opened 27 new branches and plans to open further more.
During this year, CASA share has improved from 62.75 ACU- to 64.27 ACU-,
other income has improved from 21.75 Crore to 25.13 Crore resulting in
increase in Net profit from 26.97 Crore to 35.51 Crore.
Under Financial Inclusion programme, all 355 allotted villages are
covered under ICT based model. M/s Vakrangee Finserve Ltd., selected
through common RFP has been engaged as the BC for providing BC services
in all the villages allotted to the Bank, which is functioning
actively.
During this year 2013-14, MGB has grown by 7.68 ACU- in total deposits and
14.20 ACU- in advances. It has achieved three SOI targets for the year
2013-14. The position of SOI targets and achievement are as under:-
Sr. Actual Target Actual
No. Parameter 31.03.2013 31.03.2014 31.03.2014
14 Performance of RRBs
14.1 Deposit Growth in ACU- 19.12 ACU- 12.50 ACU- 7.68 ACU-
14.2 Advance Growth in ACU- 38.09 ACU- 20.00 ACU- 14.20 ACU-
14.4 Branches under CBS 351 365 378
(Nos.)
14.5 Profit per employee
(Rs. In 2.13 2.40 2.67
Lakh)
14.6 No. of loss making 18 30 18
branches (being 12
months old or more)
8.2 The Maharashtra Executor ACY- Trustee Company Pvt. Ltd. (METCO)
The Maharashtra Executor ACY- Trustee Company Pvt. Ltd. (METCO), the
100 ACU- subsidiary of Bank of Maharashtra was established in 1946 with
an aim to provide services auxiliary to banking such as:
- Consultation, Drafting ACY- Execution of will
- Consultation, Drafting and Management of Private Trusts / Public
Trusts
- Management of investments ACY- house properties as attorney
- Guardianship of minor''s property
- Consultation for sale / purchase of property
- Filing of I-Tax Returns for individuals
The Company is located at Pune having its branch units at Pune,
Vashi-Mumbai, Thane and Nagpur
During 2013-14, company could get new assignments for management of
additional 9 Trusts bringing total 1070 Public ACY- Private Trusts under
our fold for management. During the year, additional 41 WILLS were
added making total 1069 WILLS in our custody for execution.
At present, the Company manages properties both movable and immovable
of 82 clients under the Power of Attorney. The Company also acts as the
Trustees in respect of 170 policies under Married Women''s Property Act
and as Court appointed Guardian of minor''s property in 6 cases.
9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY
During the year 2013-14, the Bank has made various remarkable
achievements in the field of Official Language implementation.
Two prestigious Hindi-serving Institutions, Mumbai based Aashirvad and
Kolkata based Rashtreeya Hindi Academy, Roopambra, awarded trophy to
our bank for better use of Hindi implementation and and shield for
Rajbhasha Visheshank of our house magazine ACI-Mahabank Pragati ACI-.
On 17th and 18th August, 2013, a two-day seminar was organized in
Kolkata for all Official Language Officers of our bank. Seminar was
Inaugurated by the then C ACY-MD Shri Narendra Singh. Director of the
bank, Dr.R.K.Agrawal also graced the occasion.
On 14th September, 2013, Hindi day function was held in Head Office,
Pune, which was headed by the then C ACY-MD Shri Narendra Singh. On this
occasion, shields were presented to the winner Zonal Offices, Branches
and Head Office Deptts of bank''s internal Rajbhasha Trophy Scheme for
the year 2012- 13.
On 3rd March, 2014, 29th meeting of Maharashtra State Level Banker''s
Committee (Rajbhasha) was held at Head Office, Lokmangal, Pune.
Executive Director, Shri R. Athmaram headed the meeting. Shields were
presented to the winner member banks and financial institutions of
state level Rajbhasha Shield competition.
Zonal Office, Akola, Raipur, Nagpur ACY- Kolkata and Vijaywada branch of
Hyderabad Zone were awarded various prizes for better use of Hindi by
various Town official Language Implementation Committees.
During the year 2013-14, Deputy Director (O.L.), Regional
Implementation Office, Department of Official Language. Ministry of
Home Affairs inspected the progressive use of Hindi at our Nagpur,
Nasik ACY- Chennai Zonal Offices.
Chief Manager (Rajbhasha) Shri Anand Prakash Jaiswal has been nominated
as a member in RBI''s ACI-Banking Glossary Committee ACI-.
Shri Deepak Bhalchandra Karpe, Clerk of our Dewas branch has been
awarded in RBI''s Inter-bank Hindi Essay competition.
Hon''ble Governor of Madhya Pradesh handed over Madhya Pradesh
Rashtrbhasha Prachar Samiti, Bhopal ACI-Hinditar Sevi Samman ACI- along
with certificate to our Chief Manager, Shri Girish Vaghela.
A national level one-day seminar was arranged by TOLIC Pune with
support from Pune College, Camp. Our Bank is the convener of this
Committee.
10. DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts
for the year ended 31.03.2014:
- The applicable accounting standards of the Institute of Chartered
Accountants of India, have been followed along with proper explanation
relating to material departures, if any ADs-
- The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India, are consistently applied and proper
disclosures are made for changes, if any ADs-
- Reasonable and prudent judgment and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and the profit of the Bank for the year.
- Proper and sufficient care was taken for maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks, in India ADs- and
- The accounts have been prepared on a going concern basis.
11. CHANGES IN THE BOARD OF DIRECTORS
During the year 2013-14, the following changes took place in the Board
of Directors:
Shri S.D. Dhanak ceased to be Director w.e.f. 21st July 2013.
Shri Narendra Singh, Chairman ACY- Managing Director superannuated on
30th September 2013.
Dr N.K. Drall resigned from Directorship w.e.f 15th November 2013.
Dr. D.S. Patel, Shareholder''s Director ceased to be Director w.e.f 1st
February 2014.
Dr Rajkumar Agrawal, Shareholder''s Director ceased to be Director
w.e.f. 1st February 2014.
Shri C.VR. Rajendran, Executive Director appointed as Chairman ACY-
Managing Director of Andhra Bank w.e.f 13.12.2013.
Ms Kamala Rajan, RBI Director superannuated on 28th February 2014.
Dr. S.U. Deshpande''s Directorship is kept in abeyance w.e.f 16th
March2014, by Government of India.
Shri R.L. Saydiwal was appointed as Director w.e.f. 21st July 2013.
Shri R. Athmaram was appointed as Executive Director w.e.f 07th August
2013.
Shri Sanjeev Jain was appointed as Director w.e.f. 19th August 2013.
Shri Sushil Muhnot was appointed as Chairman ACY- Managing Director w.e.f
09th November.2013.
Shri R.K.Gupta was appointed as Executive Director w.e.f 31st December
2013.
Dr S.Rajagopal was appointed as RBI Director w.e.f. 13th March 2014.
The Board of Directors place on record their sincere appreciation for
the valuable contribution made by the outgoing Directors.
12. ACKNOWLEDGMENTS:
The Board of Directors wishes to express sincere gratitude to the
Government of India, the Reserve Bank of India, the Securities and
Exchange Board of India, Insurance Regulatory and Development
Authority, Indian Banks'' Association and Stock Exchanges and CDSL for
their valuable advice and support ADs- to the customers and shareholders
for their patronage ADs- to the correspondents and associates for their
co-operation and to all the members of staff of ACI-Mahabank Family ACI-
for their unstinted commitment and contribution to the overall development
of the Bank.
For and on behalf of the Board of Directors
Pune (S. Muhnot)
Date : 26.05.2014 Chairman and Managing Director
Mar 31, 2011
The 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, 2011.
2.14 Income, Expenditure and Profitability
The total income of the Bank grew to Rs. 6,093.95 crore from Rs.
5,326.80 crore depicting revenue growth of 14.40 per cent during the
year. The detailed income/ expenditure components are as under:
(Rs. in crore)
Variation
Particulars 2009-10 2010-11 (per cent)
Interest / discount on
advances / bills 3369.63 4006.14 18.89
Income on investments 1297.90 1520.30 17.13
Interest on interbank
lending & other
Interest 68.03 36.65 -46.13
Total interest income 4735.56 5563.09 17.47
Non-interest income 591.24 530.86 -10.21
Total Income 5326.80 6093.95 14.40
Interest on deposits 3183.06 3282.75 3.13
Interest on borrowings 256.25 311.94 21.73
Interest expenditure 3439.31 3594.69 4.52
Staff expenses
(INCLUDING Provision
as per AS-15
(Revised) 655.50 1157.08 76.52
Staff expenses
(EXCLUDING
Provision as per
AS-15
(Revised) 603.20 681.39 12.96
Non staff expenses 417.45 487.14 16.69
Total Non interest
expenses 1072.95 1644.22 53.24
Total Operating
Expenses 4512.26 5238.91 16.10
Operating Profit 814.55 855.03 4.97
Provisions and
Contingencies 374.97 524.64 39.91
Net Profit 439.58 330.39 -24.84
2.15 Financial ratios
Particulars 2009-10 2010-11
EPS (Rs. ) 10.21 6.86
Cost to Income Ratio
(per cent) 56.85 65.79
Return on assets (per cent) 0.70 0.47
Return on equity (per cent) 20.79 15.58
Book Value per Share (Rs. ) 49.12 49.18
Profit per Branch ( Rs. In lakh) 30.25 21.51
Profit per Employee (Rs. In lakh) 3.21 2.38
Business per Branch (Rs. In crore) 71.73 74.43
Business per Employee (Rs. In crore) 7.62 8.25
Interest income as per cent to
Average working funds 7.50 7.92
Non Interest income as per cent
to average working funds 0.94 0.76
Interest spread as per cent
to average working funds 2.05 2.80
Operating Profit as per cent
to average working Funds 1.29 1.22
Staff expenses to average
working funds 1.04 1.65
Staff expenses (excluding
Provision as per AS-15
(Revised) to average
working funds) 0.95 0.97
Dividend (per cent) 20.00 20.00
2.16 Capital from GOI
During the year, the major share holder, Government of India, have
infused additional capital in the form of perpetual non-cumulative
preference shares (PNCPS) Rs. 588 crore and equity share capital Rs.
352 crore.
2.17 Networth
The BankÃs Net worth increased from Rs. 2,114.46 crore as on 31.03.2010
to Rs. 2,709.24 crore as on 31.03.2011.
2.18 Capital Adequacy Ratio
The Capital Adequacy Ratio stood at 13.35 per cent as on 31.03.2011,
against the minimum 9 per cent prescribed by RBI in terms of Basel II
norms. The Tier I capital adequacy ratio stood at 8.02 per cent as
against RBIÃs prescription of 6 per cent.
2.19 Dividend
The Board of Directors has proposed a dividend of 20 per cent for the
year ended 31.03.2011.
3. ORGANISATION AND SUPPORT SYSTEM
3.1 Branch Expansion
During the year, the Bank opened 83 new branches. As on 31.03.2011, the
total branch network comprised of 1536 branches spread over 24 states
and 2 union territories. The branch network includes specialized
branches of foreign exchange, government business, treasury &
international banking, industrial finance, SME, hi-tech agriculture,
pension payment, pension processing, retail credit, Self Help Group and
asset recovery. Area wise classification of branches as on 31.03.2011
is given in the table below:
Sr.
No. Classification As on 31.03.2010 As on 31.03.2011
1 Rural 526 538
2 Semi-Urban 266 293
3 Urban 281 301
4 Metropolitan 380 404
Total 1453 1536
3.2 Human Resources Management
The Bank has put in place a comprehensive HRM Policy Document that
provides road map for acquiring appropriate & need based Human
Resources, its development through training, job enrichment, reward and
recognition for better performance, career progression, welfare and
retention.
As part of Platinum Jubilee Celebration, a memento in the form of Gold
Coin was presented to all eligible employees who were in service of the
Bank as on 16.09.2009.
During the year, Bank has for the first time taken up recruitment of
1000 Clerks through direct interview process. Internal promotion
process for all cadres was also carried out. During the year,
promotions have taken place from Scale I to Scale VII and total 583
Officers were promoted in the process besides 400 Clerks getting
promoted to Officer Cadre. Process of recruitment of 392 Probationary
Officers is completed. Considering the requirement of specialized cadre
of staff and ever changing CBS technology for improving operational
capabilities and specialized customer service, 96 MBA qualified
Officers, 25 Chartered Accountants, 32 Agriculture Officers, and 38
Agri. Business Facilitators were recruited.
In the year 2010-11, 732 employees ceased to be in service on account
of retirement, resignation etc.
To recognize outstanding performance in Banking activities and to
motivate others to perform better, membership to ChairmanÃs Club,
Better Managed Branch/Region trophy, cash incentives to all staff of
Best Performing Branches are in vogue.
From this year, a Rolling Trophy in the name of Bharat Ratna Dr.
Babasaheb Ambedkar to the best performing branch in disbursement and
recovery of advances to SC/ST borrowers has been instituted.
The Bank has been allocating up to 3 per cent of its net profit towards
various schemes for the welfare of staff including retired staff. The
welfare schemes are administered by a Trust.
The Bank has continued to promote and maintain a healthy industrial
relations climate through fair, transparent and firm handling of
Industrial related matters.
The Bank has been complying with the reservation policy of Govt. of
India. Special Cells at Central Office and all Regional Offices are
functioning to monitor the implementation of the Reservations Policies
and to redress grievances of SC/ST/OBC & Physically Challenged
employees as well as Ex-Servicemen. The Bank has designated two Chief
Liaison Officers at C.O. and has set up SC/ST Cells at all its Regional
Offices for the purpose. During the year, periodical meetings were held
with SC/ST/OBC Employeesà Association at C.O. to discuss implementation
of reservation policy and other constitutional safeguards and also to
facilitate involvement in business growth. Similar meetings were also
held at Regional level.
The number of employees belonging to different categories is as under:
Sr.
No Category
of Employees No. of Percentage
Employees to total
1. Women 3154 22.75
2. Physically Challenged 192 1.39
3. SC Employees 2754 19.87
4. ST Employees 991 7.15
5. OBC Employees 880 6.35
Rosters have been maintained as per Govt. guidelines and are regularly
inspected / checked.
Training Activities:
The Bank has a training system which facilitates attention to regular
periodic assessment of skill gaps at various levels in relation to
existing and emerging business opportunities. Skill building in Credit,
Forex, Customer Relationship Management, Marketing of products and
services, Credit Monitoring and Recovery, Risk Management, Technology
based Banking Branch Management, complying with statutory, legal and
policy requirements and preventive vigilance were given special
attention for imparting training during the year.
The training programmes were also held on thrust areas like financing
SMEs, retail lending, agriculture finance and rural development.
Presently, the Bank has an apex Training College at Pune with three
training establishments operating under it, one each at Mumbai, Nagpur
and Pune. Information Technology Training Institute and Computer Labs
at Regional Offices train the Officers and staff to utilize Information
Technology for effective customer service and efficient back office
functions.
During the year, all the training establishments of the Bank together
conducted a total of 330 programs, out of which 108 were for Officers,
141 for clerks and 81 for sub-staff members. Out of above, 33
locational trainings were arranged at 28 Regions and trained 592 staff
members.
A total of 8748 employees participated in various training programmes
during the year, both in-house and external, comprising of 4294
officers, 3324 clerks and 1130 sub-staff members of whom 2277 were SC
employees, 1130 ST employees and 1218 women employees.
The IT Labs across the country in addition to the existing training
infrastructure cater to the training needs of the end users at the
branches and Regional Offices. During the year, 1848 staff members were
imparted training under IT. Out of above, 1374 members of staff were
trained to handle the Core Banking Solution (CBS) software for
efficient customer service and back office function.
76 Executives / Senior Officers participated in CRISIL Executive
training modules on Credit which were held during the year for building
skills & enhancing efficiency. 12 Executives / Officers were deputed
abroad for training programmes, participation in seminars,
International meetings etc. for facilitating global experience and
exposure to developments taking place in banking & financial services
in other countries.
A unique Pre- retirement Counseling programme for the employees
retiring by March 2011 was arranged at Head Office in November 2010.
119 employees participated in the programme. Besides lectures on
investments, health checkup of participants was also arranged.
3.3 Technology Initiatives
The Bank has been leveraging the tools of Information and Communication
Technology for improving the operational capabilities and for meeting
the customer needs and aligning with the business requirements of the
Bank. The year 2010-2011 has been a fruitful year for the Bank in the
Information Technology area. During the year, the Bank stabilized the
Core Banking Solution at all 1536 branches, expanded the ATM network to
417 and introduced various new products & services.
The implementation of 100 percent CBS in the Regional Rural Bank of the
Bank, i.e. Maharashtra Gramin Bank was initiated and completed during
the year.
The Bank has been offering an enticing bouquet of customer-centric IT
products and services.
3.3.1 Major IT Initiatives & Achievements during 2010-11
Ã!Ã Facility of income tax payment through BankÃs ATMs is made
available.
Ã!Ã Facility to view tax credit statement (Form 26AS) through internet
banking is made available.
Ã!Ã Inter bank funds transfer facility is made available to internet
banking users for directly remitting funds through RTGS/NEFT
Ã!Ã Centralized Salary: As part of the various BPR initiatives,
Centralized Salary Processing was implemented during the year, whereby
the entire salary processing and related activities have been
centralized and undertaken from Central Office for the Bank as a Whole.
Credit of salary, credit to loan accounts, TDS deduction & remittance,
generation and submission of Form 16, etc are all undertaken centrally
now.
Ã!Ã Financial Inclusion Plan implemented adopting the ICT (Information
and Communication Tool) model during the year. 484 villages have been
covered having 1.12 lakh uncovered households, as on 31.03.2011.
Ã!Ã e-Lounge: Bank has set up e-lounges, one each at Pune, Mumbai and
Delhi, for the benefit of High Networth Individuals, tech savvy and
young generation customers for doing online banking transactions using
the infrastructure. The lounge is equipped with self servicing passbook
printer and electronic cheque deposit machine and internet available
terminals.
3.3.2 Other IT Initiatives
Core Banking Solution (CBS):
All the 1536 branches across the country are covered under Core Banking
Solution (CBS).
Bank has implemented FOREX module under CBS at all the 34 FEX centers
and e-Treasury module at TIBD.
Bank has implemented Anti Money Laundering module and is in the process
of implementing other modules relating to Customer Relation Management,
Transfer Pricing Mechanism and Asset Liability Management which will
strengthen decision support system (DSS) of the bank management.
Implementation of Core Banking Solution in Regional Rural Bank (RRB):
As on 31/03/2011, all the 329 branches of Maharashtra Gramin Bank, the
RRB sponsored by the Bank, have been brought on CBS platform.
Data Centre, Disaster Recovery Site & Near Site:
The Bank has its own Data Center (CMM Level III) at Pune to take care
of the CBS infrastructure requirements with Disaster Recovery (DR) site
at Hyderabad. The concept of NEAR SITE as a third site replication
mechanism has been implemented by the Bank with effect from 13/03/2011.
This solution was selected by the Bank for its anticipated zero data
loss over distance, high levels of data availability, high performance,
accuracy and reliability, while enhancing the IT infrastructure
efficiency level, reducing costs and enabling operational flexibility.
We are one of the few public sector banks to implement the concept of
near site.
ATM Network:
Bank has increased its ATM Network from 345 ATMs at the start of the
year to 417 ATMs across the country by the end of the year and the
project is totally outsourced on end to end basis. Bank has
collaborated with VISA for the Debit Cards. Bank has joined other
shared ATM Networks like NPCI which enabled access to 50000 plus ATMs
in the country for our customers. Eleven ATMs are bio-metric enabled
for the benefit of illiterate customers and pensioners. Bank is
planning to expand the ATM network further in the ensuing year to make
it 750 in all.
Corporate Network:
The bank has established its own Corporate Network - ÃMAHANETÃ. The
network was restructured to take care of the latest IT requirements. As
of date, the connectivity has been established at 1536 branches,
Regional Offices, Training Colleges / Centres and Central Office.
Applications like CBS, ATM Network, RTGS, DEMAT, INTRANET, Credit Risk
Rating, Online Tax Collection System (OLTAS), ROSE, etc. are put to use
through MAHANET.
IP Telephones are extensively used through MAHANET at all the Regional
offices, CBS branches and Head office.
Bank is continuously making efforts in doing Research & Development on
latest network technologies such GPRS, 3G , MPLS and VPN etc, for
providing high availability to the branches.
Real Time Gross Settlement (RTGS) / National Electronic Funds Transfer
(NEFT):
To give an impetus to the Remittances functionality for convenience of
the customer as well as inter-bank transactions, Bank has implemented
RTGS and NEFT at all 1536 branches across the country. Straight Through
Processing (STP) facility is implemented at all CBS branches whereby
credit for inward remittances through RTGS / NEFT is given to the
customer accounts directly by the system. It is proposed to extend the
same facility to BankÃs sponsored MGB.
Internet Banking / Phone Banking / SMS Banking:
Bank has implemented the Net Banking suite à Internet Banking / Phone
Banking and SMS / Mobile Banking with online and offline request
processing and e-payment of Taxes (CBDT, CBEC & VAT). As on 31.03.2011,
there are more than 1,02,000 customers using Internet Banking, 35,000
customers using Phone Banking and 49,000 customers using the SMS /
Mobile Banking facilities.
Information System Security Policy:
Bank has put in place its ÃInformation System Security Policy" (ISSP)
comprising 34 different policy documents. The ISSP along with the
Procedures are modified keeping in view the changed requirements of the
Bank and approved by the Board. The Policy document has been circulated
to all the staff members of the Bank for compliance.
Bank has completed the process of implementation of the ISSP across the
organization. Compliance verification of the same has been initiated.
Cheque Truncation System (CTS):
Bank successfully implemented Cheque Truncation System (CTS) introduced
by RBI in the National Capital Region, New Delhi. The process for
implementing CTS at Chennai has been initiated, as per RBI guidelines.
Bank is in readiness to participate in the CTS in Chennai as and when
it is implemented. Bank has migrated all 14 Service Branches to CBS.
Service branches at Pune and Mumbai have been provided with high-end
MICR processors.
Video Conferencing:
Bank expanded the Video Conferencing facility through MPLS technology
to all the Regional Offices for facilitating interactions, imparting
trainings, conducting interviews and review of performance of Regions
by the Top Management of the Bank. In view of the extensive use of the
Video Conferencing facility, it is proposed to upgrade the facility so
as to enable improved audio and video quality features (high
definition) and facilitate extension of the usage of video conferencing
to more areas including e-learning.
Business Process Re-engineering (BPR):
As a part of BPR, Bank had implemented Centralized Cheque Processing
system at all its 14 service branches, Cheque Truncation System at NCR,
New Delhi, Issuance of VISA Debit Card (Insta Card) as Welcome Kit at
the time of opening of Account, straight- through-processing for RTGS /
NEFT, Online Processing of ATM Card & Internet Banking Applications,
Core to Core DD / CO / POB Reconciliation Systems and automation of
outstation cheque collection process.
It is envisaged to undertake BPR initiatives involving activities such
as Centralised Chequebook Issue, Personalised Cheque Printing,
Centralised Customer Statement Printing & Dispatch, e-Payment Gateway,
Centralised stationery indenting and printing software etc. during
2011-12.
Identification and collation of NPA from CBS system has been one of the
major BPR initiatives undertaken by the Bank and implemented in
accordance with the directives of Ministry of Finance, Government of
India. This will help reduce manual intervention and facilitate
improved monitoring of the credit portfolio.
MIS & Data warehousing:
Under MIS, Bank has developed and implemented a web-based MIS Portal
for Branch Profile, Region Profile, CO Profile & Executive Dash Board
of BankÃs Trial Balance and Profit and Loss account. The daily business
figures are sent through SMS to all branch managers, field executives
and CO executives and top management. Bank has taken implementation of
a separate solution for MIS called Branch Banking Management
Information System (BBMIS) to cater to the overall MIS requirements of
the Bank.
It is proposed to initiate steps for implementation of Data Warehouse
and Business Intelligence project during the year 2011-12.
IT Training:
Bank has operationalized 14 IT Labs across the country in addition to
the existing training infrastructure to cater to the training needs of
the end- users. CBS training has been imparted to 7065 staff members.
In-House Software Development:
Bank has a well-trained pool of software developers who are
continuously engaged in development of various systems as per the
requirements of various functional departments, regional offices etc.
including various utility systems related to year-end and audit related
activities.
Implementation of CPSMS: All banks have been directed by Controller
General of Accounts to develop and implement the integration between
their respective CBS and Central Plan Scheme Monitoring System (CPSMS)
functionality which would be an online management information system
and decision support system for the various plan schemes of Government
of India. This would cover the accounts of various agencies who shall
be receiving funds from Government. The primary objective was to have a
tracking and monitoring mechanism for the fund disbursement and fund
utilization under Plan schemes on real time basis. The necessary
integration with CBS to facilitate viewing of transactions in the
account by Government of India has been developed by our internal team
within the timeline specified by Government of India.
Bank has developed e-TDS system which enables the branches to collate,
compile and submit quarterly e-TDS return to tax authorities.
Facilities are provided on the Banks intranet for the benefit of
branches for viewing and printing various analytical statements and
statistics about the business parameters of the branch / regions.
Facility has also been provided to branches to generate and print the
Form 16 (TDS Certificate) to be issued to customers as and when
required. This is applicable for the TDS deducted on the interest paid
to customers on their various deposits with the Bank. The facility will
enable the branches to print and issue the Form 16 as and when required
by the customers.
The other major systems developed and implemented are Regional Office
Software (ROSW), HRM Software (Payroll and other modules), Branch
Inspection Software (BRAINS), Online Tax Collection System (OLTAS),
Credit Risk Rating System, PF System, INTRANET, ATM card and
application status tracking, etc.
3.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service to ensure
customer satisfaction through out the year.
As member of the Banking Codes and Standards Board of India (BCSBI)
Bank has adopted the Code of BankÃs Commitment to Customers and BankÃs
Code of Commitment to SMEs.
Duly documented policies approved by the Board on ÃDeposits",
ÃCollection of Cheques / instruments", ÃRedressal of Grievances",
ÃCompensation" and ÃOperational Procedure for settlement of claims of
Deceased Depositors" are in place. These policies are displayed on
BankÃs website.
The Committee of the Board on Customer Service meets periodically to
monitor the quality of customer service and redressal of customer
grievances to ensure customer satisfaction. The Standing Committee on
Customer Service at Central Office and Regional Level Customer Service
Committees at all the regional offices also meet regularly to address
and review various customer related matters to take steps for
improvement on an ongoing basis.
Customer Service Committees at all the branches are formed and a cross
section of customers representing depositors, corporates, businessmen
and senior citizens are invited to attend its meetings to have feedback
and suggestions on schemes, products and services.
A full fledged grievances redressal machinery is in place to respond
promptly to customer grievances. Complaint Management Cells are
operative at Central Office and at all Regional Offices of the Bank.
The Committee of the Board on Customer Service and Standing Committee
on Customer Service at Central Office monitor the progress of redressal
of customer grievances regularly.
The Bank has implemented all major recommendations of Goiporia
Committee and Dr. S.S.Tarapore Committee relating to customer service.
The Bank has in place internet based mechanism for lodging the
complaint or to give suggestions / feedback on services by the
customers and for providing acknowledgement and status of their
feedback / complaint.
The BankÃs Anniversary Day on 8.2.2011 was celebrated as Customersà Day
and Chairman & Managing Director interacted with the customers across
the country through video conferencing.
3.5 KYC/AML
Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/
Combating of Financing of Terrorism (CFT) and obligation of Bank under
PMLA, 2002
à The Bank has Board approved KYC-AML-CFT Policy in place. The said
Policy is the foundation on which the BankÃs implementation of KYC
norms, AML standards and CFT measures is based.
The full KYC compliance entails staff education as well as customer
education for which the following measures are taken by the Bank.
à A comprehensive list of KYC documents is uploaded on the BankÃs web
site for the benefit of customers
à Regular training sessions are conducted on KYC-AML-CFT guidelines at
the BankÃs training establishments.
3.6 Information Facilitation Centre:
Mahabank Facilitation Centre is operating from Mumbai since June 2005
and can be accessed through two All India Toll Free Numbers i.e. 1800-
222340 and 1800-220888. Toll Free Telephone Numbers have been made
available at 12 major cities.
During the year, 27,840 calls were received on toll free numbers
regarding various products and services offered by the Bank, queries
and feedback on the BankÃs services.
An Information Facilitation Centre had been set up in July 2001 in Head
Office for providing information on various schemes and products of the
Bank and any other information / assistance that may be required by
customers and public.
During the year, 6,695 complaints were received and redressed through
this center.
3.7 Risk Management
Banking business is becoming more complex and exposed to wide array of
risks. Success of a bank will be derived based on its risk management
capabilities. Keeping this in mind the Bank has adopted various
strategies for effective risk management.
Credit Risk
The Credit Risk Management process forms an integral part of overall
risk management of the Bank. The Bank has put in place comprehensive
Lending Policy, Loan Review Policy and Risk Management Policy for
credit risk management. The policies prescribe various guidelines,
procedures, standards and prudential / exposure norms.
The Bank has constituted Credit Risk Management Committee (CRMC) which
reviews the policies, procedures and systems relating to credit
administration and monitoring, at periodic intervals.
Credit concentration risk is regulated through prescribing, monitoring
and reviewing of credit exposure limits in terms of single borrower /
group borrower exposure, exposure to sensitive sectors, industry
exposure, substantial exposure, geographical exposure, identifying the
thrust and low priority areas.
To evaluate the risk perception in a lending proposition, the Bank has
put in place an in-house developed Credit Risk Rating Framework (CRRF)
for rating of existing as well as entry level borrowers in various
asset classes, as desired under Basel II. The Bank has prescribed
threshold ratings for entry level exposures with a view to building up
credit portfolio within the risk appetite and achieve the profit plan.
With a view to separating the Credit Risk Management function from
credit sanctioning, Credit Approval Grids are set up at various levels
which assess the risk perception through a committee approach.
The Bank has undertaken migration analysis of credit risk rating of
borrowers over a time horizon and probability of default has been
estimated in line with Basel II requirements. To achieve risk-return
trade off, risk based pricing framework has been implemented. Portfolio
reviews and industry studies are undertaken to assess the risks lying
in the credit portfolio and adopt strategies to improve credit quality.
Stress testing is also undertaken periodically.
Market Risk
Market Risk is the risk to the Bank resulting from the movements in
market prices due to changes in interest rates, foreign exchange rates,
equity price and commodity price. The changes impact the BankÃs
earnings and capital and can have ramifications on the BankÃs liquidity
and profitability.
The ALM Policy, which is reviewed annually and approved by the Board,
prescribes the parameters for management of Market Risk and Liquidity
Risk. The Bank has constituted Asset Liability Management Committee
(ALCO), which meets at regular intervals to review the interest rate
scenarios, liquidity positions etc. The ALCO manages and supervises
Market Risk and Liquidity Risk through review of rates of interest on
deposits / advances. ALCO also monitors adherence to various risk
limits and determines the business strategy in light of prevailing
interest rate scenario and liquidity position in the market with a view
to optimizing profit and overall balance sheet management.
Interest Rate Risk is managed through the prescriptions of ALM Policy.
Various tools viz. Earnings at Risk, Duration and Value at Risk models
are used for monitoring interest rate risk. The ALCO reviews the risk
on regular basis and measures are initiated to minimize the interest
rate risk.
Investment Risk is managed through the prescriptions made in the
Investment Management Policy & Investment Risk Management Policy.
For management of Foreign Exchange Risk, prudential limits for open
foreign exchange position, aggregate gap position, Daylight limit,
Overnight limit, Net open overnight position, Stop loss limit, Limit
for undertaking swaps / investment / borrowing overseas, inter bank
exposure limits etc. have been put in place. These limits are
monitored regularly.
Management of Liquidity Risk is achieved through ongoing review of
structural liquidity and short term dynamic liquidity as well as daily
liquidity position. Stress testing is undertaken periodically.
Operational Risk
The Operational Risk Management Policy of the Bank outlines the
framework for measuring, monitoring and controlling operational risk in
the Bank. The Bank lays due emphasis on identifying risk prone areas
and taking suitable remedial actions by streamlining systems &
procedures, imparting training so as to control operational risks. The
Operational Risk Management Committee (ORMC) meets regularly to review
the matters related to operational risk. The Bank has put in place
policy on Business Continuity Planning. A policy on outsourcing is also
formulated which facilitates use of expertise available in the market
with adequate safeguards against risk associated with outsourcing.
Basel II Compliance
The Bank is Basel II compliant in terms of the New Capital Adequacy
Framework (Basel II) guidelines issued by RBI. Bank has adopted
Standardized Approach for Credit Risk, Standardized Duration Approach
for Market Risk and Basic Indicator Approach for Operational Risk as
per RBI guidelines for capital adequacy computation. External credit
ratings from approved rating agencies are used for risk weighting of
corporate exposures as required under Basel II. Bank has also put in
place a policy on Utilization of Credit Risk Mitigation Techniques &
Collateral Management.
The Bank has evolved Board approved Internal Capital Adequacy
Assessment Process (ICAAP) which covers identification and measurement
of risks other than Pillar 1 risks (i.e. Credit Risk, Market Risk &
Operational Risk), to meet the requirements of Pillar 2 of Basel II
norms. The Bank has adhered to disclosure norms as stipulated in the
guidelines of RBI to meet Pillar 3 requirements of Basel II.
Bank has drawn a roadmap for implementation of advanced approaches
under Basel II.
Improvement in awareness of Basel II norms amongst the employees is
ensured through training. Knowledge and skill levels of risk management
team at Central Office are constantly upgraded through exposure to
external trainings, workshops and seminars.
3.8 Internal Control Systems
Inspection & Concurrent Audit:
The Inspection and Audit system and various measures of internal
control are adopted by the Bank to ensure identification/assessment and
mitigation of operational risks.
Inspection of Branches:
The Bank continued to adhere to the Jilani Committee recommendations
and inspected 1011 branches during the year covering 65.82 per cent of
total branches of the Bank. As per RBI guidelines under Risk Based
Supervision, the Bank has undertaken Risk Based Internal Audit (RBIA)
al all these 1011 branches.
Conference of all inspecting officials and heads of inspection cells
was organized during September/October 2010 to update them on policies,
procedures, business environment, opportunities and challenges for
banks, emerging areas of risks and their role in alerting the top
Management of existing and impending risks at branches and offices.
Surprise Inspection:
In pursuance of the Ghosh committee recommendations, surprise
inspection was carried out at 110 branches focusing mainly on high risk
areas at the branches.
Concurrent Audit:
312 Branches and 4 central office Departments were subjected to
Concurrent Audit during the year. These branches covered 66 per cent of
aggregate deposits and 77.50 per cent of total advances of the Bank.
Income & Expenditure Audit:
Income & Expenditure Audit for the period from October 2009 to
September 2010 was carried out at 720 branches to identify and recover
income leakages, if any. Half yearly Expenses Audit of all the Regional
Offices was carried out during the year.
Management Audit:
Management Audit of 16 Regional Offices and 13 departments at Central
Office was carried out for assessing their effectiveness in terms of
supervision and controls.
RBI Inspection under Section 35 of the Banking Regulation Act:
During the year 2010-11, RBI inspected 5 branches and 3 Regional
Offices under Section 35 of RBI Act. RBI conducted AFI of the bank
during the period 01.06.2010 to 21.07.2010.
3.9 Vigilance
Vigilance activity in the Bank is an integral part of the managerial
function. Its objective is to enhance the level of managerial
efficiency, effectiveness and to ensure a proper climate for an
efficient administration, where officials can perform the duties
without any fear or favour.
ÃVigilanceà in bank is maintaining a proper balance between flexibility
and accountability.
Preventive Vigilance is the most important aspect of vigilance. With a
view to improve functioning at all levels, the Bank has taken the
necessary steps as under:
In accordance with CVC directives, Vigilance Committees have been
formed at the Branches having staff of 20 and more, to review/ monitor
sensitive and fraud prone areas and report abnormalities observed
therein, if any.
ÃFraud Risk Management Policyà on prevention, detection, classification
and reporting of frauds including action to be taken, has been adopted
by the Bank and circulated for the guidance and use of the branches and
field functionaries.
3.10 Compliance
As per the Reserve Bank of India guidelines, Board approved Compliance
Policy is in place and the compliance department is headed by Chief
Compliance Officer who is in the rank of Deputy General Manager. The
Compliance Department ensures timely compliance to the directions /
communications received from Reserve Bank of India / Government of
India / IBA and other agencies. The compliance status is reviewed by
the Top Management / Audit Committee of the Board on weekly / monthly/
quarterly basis. To improve the compliance culture in the Bank session
on compliance has been included in training programme for staff
members.
3.11 Marketing And Publicity
The landmark of crossing Rs. 1.00 lakh crore business was achieved on
31.03.2010. This occasion was given wide publicity by giving
advertisements in print media and electronic media.
The concluding ceremony of the Platinum Jubilee year was held at Vigyan
Bhawan, Delhi. HonÃble Finance Minister, Shri Pranab Mukherjee, Chief
Minister of Maharashtra, Shri Ashok Chavan, Union Minister of State for
Finance Shri Namo Narain Meena and Union Minister of State for
Communications and IT, Shri Sachin Pilot, graced the occasion.
A special commemorative Cover was released at the hands of Shri Sachin
Pilot on BankÃs completing 75 years of service to the nation.
Valued clients from all parts of the country along with top Government
officials from Delhi attended the programme.
Wide publicity was given in print and electronic media on 100 per cent
CBS achievement of Maharashtra Gramin Bank (Bank sponsored RRB),
observing CustomerÃs day at branches, Regional Offices and Central
office, launch of new products/ services and CASA campaigns.
3.12 CitizenÃs Charter
The Bank has adopted the Charter since 2000-01, which details the
duties and responsibilities of the Bank towards its customers. The
Charter is displayed at all the branches and at the website and has
been updated from time to time. The Bank has also adopted a Citizen
Charter of RBI on exchange of notes and coins.
4. SOCIAL BANKING
4.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable
and sustainable economic development by timely and hassle-free
availability of credit for productive purposes to Small and Marginal
Farmers, Micro & Small Enterprises, Retail Traders, Professional & Self
Employed, Women Entrepreneurs and entrepreneurs from economically
weaker sections.
The outstanding advances under Priority Sector as of March 2011
aggregated to Rs. 16,480.04 crore, constituting 40.66 per cent of the
Adjusted Net Bank Credit of previous year against the stipulated
minimum target of 40 per cent.
The rise in Priority Sector Advances was Rs. 2,247.78 crore over March
2010 in absolute terms.
4.2 Agriculture
The Bank disbursed Rs. 2874.28 crore for agriculture and allied
activities during the year 2010-11. The outstanding advances to
agriculture sector as of 31.03.2011 were Rs. 4691.17 crore i.e.11.58
per cent of Adjusted Net Bank Credit.
The Bank undertook awareness/sensitization programmes for all the
branches for increasing advances to agriculture.
4.2.1 The Bank successfully implemented Agriculture Debt Waiver and
Debt Relief Scheme of the Government of India and the Maharashtra state
Government.
Under Government of India Scheme bank has covered 86584 small and
marginal farmers for debt waiver involving Rs. 219.28 crore and 39320
farmers for debt relief involving Rs. 82.01 crore.
Under Government of MaharashtraÃs Debt Waiver & Debt Relief Scheme bank
has covered 36317 farmers for debt waiver involving Rs. 36.99 crore and
49353 farmers for debt relief involving Rs. 98.12 crore.
4.2.2 Mahabank Kisan Credit Card (MKCC)
This scheme gained popularity especially in rural areas where it is
being propagated successfully and vigorously. The Bank has issued total
281879 Kisan Credit Cards to farmers. Credit flow to MKCC beneficiaries
is Rs. 1493.42 crore as on 31.03.2011.
4.3 Micro, Small and Medium Enterprises (MSMEs)
SMEs are recognized as a major growth engine for the Indian economy.
They generate opportunities for direct and indirect employment by
facilitating use of natural resources and local skills to stem the tide
of migration to urban areas and promote low investment enterprises.
Finance is made available to viable enterprises at an attractive and
low rate of interest. On line enquiry portal is made available on the
BankÃs website during the year.
The Bank has adopted Simplified Loan Application for MSEs and the same
is displayed on the BankÃs website. The Bank has also adopted BankÃs
Code of Commitment to Micro and Small Enterprise and it is displayed on
the BankÃs website.
The BankÃs lending to Micro, Small and Medium Enterprises which was at
the level of Rs. 3,699.64 crore as at 31.03.2010, increased to Rs.
7,037.31 crore as at 31.03.2011, which translates into a y-o-y growth
of 90.22 per cent.
4.3.1 Maha-Entrepreneur
Under the scheme, the Bank is providing finance up to Rs. 100.00 lakh
to Micro and Small Enterprises without Collateral Security and/ or
Third Party Guarantee.
Accounts under the scheme are covered under Credit Guarantee Fund
Scheme for Micro, Small and Medium Enterprises of Government of India.
The Bank is bearing the entire guarantee fee and 50 per cent of annual
service fee, which is to be paid to the Trust under CGFMSE. The Bank
sanctioned loans of Rs. 311.94 crore to 5495 borrowers under this
scheme up to March 2011. During the year, coverage under Credit
Guarantee Fund Scheme has increased by 66.87 per cent.
5. IMPORTANT SCHEMES/PROJECTS OF THE BANK
5.1 New initiatives under Retail Loans:
a. Centralized processing of retail loans.
The Bank has opened 15 Retail Assets Branches and 18 Retail Processing
Centers covering all the Regions for hassle free and quality
disbursement of retail loans.
b. Mahabank Jewel Loan Scheme.
Gold ornaments are the traditional and inherited form of savings among
the people in India. Being one of the most liquid and precious asset,
it serves as a dependable and acceptable form of security to raise
loans for meeting immediate financial needs for business, agricultural,
consumption purposes such as marriage, medical, educational expenses
etc., With a view to meet the requirement of our customers, Bank has
launched a new Retail Loan product ÃMahabank Jewel Loan Scheme" w.e.f.
01.11.2010. For senior citizens, loan against gold ornaments is
available at 0.75 per cent less than the regular interest rate.
c. Mahabank Top-Up Loan Scheme.
In order to extend additional credit support to our regular housing
loan borrowers, Bank has launched another new Retail Loan product
ÃMahabank Top-Up loan scheme" w.e.f.01.11.2010.
5.2 Housing loan to public
The Bank has in place Housing Loan Scheme to meet the needs of all
economic segments including NRIs. Financing housing sector in rural and
urban parts of India is a thrust area.
The BankÃs lending to housing sector has grown by 17.99 percent during
the year to reach the level of Rs. 4,279.68 crore as at 31.03.2011. The
Bank is also implementing Golden Jubilee Rural Housing Scheme of the
Government of India in rural areas having population not exceeding
50,000.
5.2.1 One per cent Interest Subvention on Housing Loan up to Rs. 10.00
lakh.
As per GOI guidelines, Bank has provided 1 per cent interest subvention
to borrowers, who availed housing loans upto Rs. 10.00 lakhs costing
upto Rs. 20.00 lakhs.
5.3 Model Educational Loan scheme
With the objective of ensuring that all deserving students get
opportunity to pursue higher education, the Bank implemented a Model
Educational Loan Scheme. As of March 2011, the Bank had lent Rs. 481.40
crore to 24354 students. The Bank has provided the facility of online
submission of application for education loan through web-access.
5.3.1 Interest subsidy to Education loan borrowers under Economically
Weaker Sections:
Bank has implemented interest subsidy scheme of Government of India for
the year 2009-10 where the parental annual income is upto Rs. 4.50
lakh. Under the scheme, entire interest charged during moratorium
period is reimbursed by the Central Govt.
5.4 Micro Finance
The Bank has always recognized the importance of credit to rural and
urban poor for taking economic activity. The SHGs have proved to be
effective instruments for empowerment of women. Bank has opened
specialized branches for financing SHGs at Hadapsar, Pune and Goregaon,
Mumbai during the year. The Bank has actively financed non-traditional
activities of various Self Help Groups (SHGs).
As on 31.03.2011, there were 84087 SHGs formed by the Bank, out of
which 81471 SHGs had availed aggregate financial assistance of Rs.
229.63 crore from the Bank constituting a growth of 54 per cent over
previous year.
5.5 Assistance to SC/ST beneficiaries:
The Bank has been actively extending finance to SC/ST beneficiaries
through various schemes. Total finance as on 31.03.2011 to SC/ST
beneficiaries stood at Rs. 789.85 crore, constituting a growth of 15
per cent.
5.6 Advances to Minority Community:
A special cell has been set up at Central Office to review & ensure
smooth flow of Credit to minority community. As of March 2011, the
outstanding advances to minority communities were at Rs. 874.53 crore
to 57135 beneficiaries.
5.7 Mahabank Current Account Diamond Scheme:
Existing schemes viz Pearl and Sapphire have been refurbished and
another new Current Account Scheme viz Diamond Scheme with additional
free facilities has been introduced wef 14th December 2010.
5.8 Mahanidhi Scheme:
New ÃMaha Nidhi" Deposit scheme was introduced on 26.02.2011 to shore
up retail term deposits of the Bank. Deposits amounting to Rs. 2,922.68
crore were mobilized under the scheme till 31.03.2011.
5.9 Additional rate of Interest to Senior Citizens
Interest rate on deposits in maturity slabs of one year and above has
been increased to 0.75 per cent from 0.50 per cent for an amount less
than one crore only w.e.f 10.01.2011
5.10 Maha Chetana Programme:
Maha Chetana Programme, a staff motivation campaign, was launched in
October 2011 as an empowerment programme for the active participation
of all staff members to achieve the desired goals of the Bank and take
it to new heights in coming years. Maha Chetana Programme focused
mainly on 4 key business parameters i.e. Ã
1. Reduction in NPA
2. Sustaining deposit growth / further increasing CASA deposits
3. Increasing quality advances
4. Increasing fee based income
Hon.Chairman & Managing Director visited all the 32 regions &
interacted with all the employees for their active participation in
business growth, NPA recovery etc under the Maha Chetana programme,
which was overwhelmingly received by the staff who vowed for the
business development of the bank.
6. CORPORATE SOCIAL RESPONSIBILITY
6.1 The Rural Development Centres at Hadapsar and Bhigwan in Pune
District
of Maharashtra have been undertaking various developmental activities
for the benefit of farmers viz. Lab to Land Project, Re-development of
Saline Soils, Soil Testing and offering advice on the use of
fertilizers.
6.2 A Trust viz. Mahabank Agricultural Research and Rural Development
Foundation (MARDEF) established by the Bank undertakes various projects
and village improvement programmes. MARDEF is imparting training to
farmers on various subjects in agriculture, e.g. dairy, Emu farming,
goat rearing, best practices in grape farming, application of
fertilizers, agriculture credit schemes, etc.
6.3 The Bank has established Mahabank Self Employment Training
Institute (MSETI) for providing training to rural youth and women to
enable them to acquire skills for self-employment through small
business enterprises. The Institute has centers at Pune, Nagpur,
Aurangabad, Amravati and Nasik. The Institute has so far imparted
training to 7117 youths and has achieved settlement rate of 70 per
cent.
6.4 Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by
the Bank is actively involved in formation, nurturing, training and
ensuring linkage of SHGs to Bank Credit. The GMVBVM also helps SHGs in
marketing their products through outlets established in Pune City under
the name ÃSAVITRI". The GMVBVM guides and actively helps SHGs for
selection and purchase of raw materials and quality production.
6.5 The Bank has opened three Financial Literacy & Credit Counselling
centers
in three Lead Districts namely Pune, Nasik and Aurangabad.
6.6 Bank has helped various NGOs during the year extending financial
support to acquire necessary inputs for carrying their activities.
These include the following:
i) An Audio logical assessment equipment which helps detection of
hearing related challenges among children below the age of 3 years in
underdeveloped areas around Pune
ii) CCTV for use in free eye check up camps conducted in backward areas
in Maharashtra
iii) Retinal camera for use in eye surgeries
iv) Building and physical comforts to mentally retarded and cerebral
palsy children
v) Motorized vehicles to physically challenged persons in Delhi
vi) Construction of toilets in remote underdeveloped villages.
7. LEAD BANK SCHEME
The Bank has Lead Bank responsibility in six districts of Maharashtra
State viz. Aurangabad, Jalna, Nasik, Pune, Satara & Thane. Every year
district credit plans for the districts are prepared and implemented
with the cooperation of other banks. The Performance of the Bank during
the year in respect of six lead districts under priority sector lending
was 109 per cent of the targets.
State Level Bankersà Committee:
The Bank is the Convener of State Level Bankersà Committee (SLBC) for
the State of Maharashtra. Quarterly meetings are held regularly to
oversee the implementation of State Annual Credit Plans, priority
sector lending and Govt. sponsored schemes in the State. During the
year four SLBC meetings were held.
As an SLBC convener, state specific financial inclusion Plan
(Swabhiman) was drawn for 4292 unbanked villages having population over
2000 in the state for extending banking services to unbanked
habitations. The banks in the state have opened banking outlets in 1692
unbanked villages through brick & mortar branches, mobile van and
Business correspondentsà model for extending branchless banking as of
31.03.2011.
Registrar for issue of Aadhaar- UIDAI
The Bank has entered into MoU with Unique Identification authority of
India (UIDAI) for enrolment of Aadhaar (Unique identification number to
residents of India) and became a Registrar.
With the signing of the MoU, the Bank became a partner in the efforts
of the UIDAI set up by Government of India, for issuing Unique Identity
Numbers to residents of India.
Bank has commenced the enrolment process on pilot basis at Pune &
Mumbai for issuance of unique identification number (Aadhaar) for its
staff and customers on 8th Feb 2011 (Anniversary day) and completed
13000 enrolments as on 31.03.2011.
Financial Inclusion plan à Swabhiman
Swabhiman is path-breaking initiative by Government of India to cover
the economic distance between rural and urban India. It promises to
bring basic banking services to all unbanked villages in the country
with population above 2000. Accordingly, our bank has been allotted
1215 unbanked villages in the country to be covered under financial
inclusion for inclusive growth.
The swabhiman movement facilitates opening of bank accounts, provide
need based credit, remittance facilities and help to promote financial
literacy in rural India using various models and technologies including
branchless models through Business correspondent (BC)/ Customer Service
Provider (CSPs) models.
Bank has been implementing IT enabled financial inclusion for providing
branchless banking in allotted 1215 unbanked villages. As on
31.03.2011, bank has covered 484 villages through BC model and opened
two branches at financial inclusion villages i.e., Zari-Jamani and
Asangon in Chandrapur and Thane districts of Maharashtra respectively.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by our
bank having its Head Office at Nanded, Maharashtra state. Total no of
branches as on 31.03.2011 stood at 329 covering 16 out of 33 districts
of Maharashtra state.
MGB has migrated all its 329 branches to CBS platform within a record
time period of 77 days.
During the year 2010-11, as per GOI policy, MGB has received
recapitalization support of Rs. 45.34 crore for improving Capital to
Risk Asset Ratio (CRAR) from all stake holders i.e. Government of
India, Bank of Maharashtra and Government of Maharashtra in the
proportion of their share holding of 50:35:15 respectively.
8.2 The Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO)
The Maharashtra Executor & Trustee Co. Pvt. Ltd (METCO) was established
in 1946 with an aim to provide services auxiliary to banking such as
à Drafting & Execution of will
à Management of private trusts
à Management of public charitable trusts
à Management of investments & house properties as attorney
à Guardianship of minorÃs property
à Consultation for sale/purchase of property
à Filing of I-Tax Returns for individuals
The Company has its units at Pune, Mumbai, Thane and Nagpur.
During 2010-11, new assignments for Management of Trusts received were
24, bringing the total number of Public & Private Trusts under
management to 1002. New Wills added during the year were 46 bringing
the total number of Wills in custody and execution to 1063.
The Company manages properties both movable and immovable of 120
clients under the Power of Attorney. The Company also acts as the
Trustees in respect of 147 policies under Married WomenÃs Property Act
and acts as Court appointed Guardian of minorÃs property in 10 cases.
9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
Progressive use of Official Language.
During the year 2010-11, the Bank has made various remarkable
achievements in the field of Official Language Implementation.
æ Our former Chairman & Managing Director received the 2nd prize won by
the Bank in Reserve Bank of India Bilingual House Magazine competition
for the year 2008-09 at a function held at Mumbai on 26th May, 2010.
æ TOLIC, Mumbai convened by our Bank has received Indira Gandhi
Rajbhasha shield. The prize was received by the then General Manager
Shri V. Kannan at the hands of Honorable Vice President of India on
14th September, 2010 at New Delhi.
æ The Bank also secured 4th place in Reserve Bank of India Bilingual
House Magazine Competition for the year 2009-10.
æ Our Regional office, Raipur was awarded 3rd prize for better use of
Hindi by the TOLIC, Raipur.
The Bank is the Convener for Town Official Language Implementation
Committee (TOLIC) in Pune, Mumbai and Solapur. Meetings of these
committees were held regularly. The Bank is also a Convener of State
Level Bankers Committee (Rajbhasha). Meeting of the committee for this
year was held on 8 March, 2011.
10. DIRECTORSÃ RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts
for the year ended 31.03.2011:
à The applicable accounting standards of the Institute of Chartered
Accountants of India, have been followed along with proper explanation
relating to material departures, if any;
à The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India, are consistently applied and proper
disclosures are made for changes, if any;
à Reasonable and prudent judgment and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and the profit of the Bank for the year.
à Proper and sufficient care was taken for maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks, in India; and
à The accounts have been prepared on a going concern basis.
11. CHANGES IN THE BOARD OF DIRECTORS
During the year 2010-11, the following changes took place in the Board
of Directors:
Shri Shirish D. Dhanak was appointed as Workmen Employee Director w.e.f
21st July, 2010.
Shri S.K.Gogia, RBI Nominee director, ceased to be the Director w.e.f
29th July 2010.
Mrs. Kamala Rajan was appointed as RBI nominee director from 30th July,
2010.
Shri Allen C.A. Pereira, CMD, demitted office on 30th September 2010 on
reaching superannuation.
Shri A.S. Bhattacharya was appointed as Chairman and Managing Director
w.e.f 1st October, 2010.
Shri. T.Parameswara Rao, ceased to be the Director w.e.f 12th November
2010.
Shri Chittaranjan Patwari ceased to be the Director w.e.f. 22nd January
2011.
Shri Anand K Pandit and Dr. Dinesh Shatilal Patel, were re-elected as
directors representing Share holders w.e.f 1st February, 2011
The Board of Directors place on record their sincere appreciation for
the valuable contribution made by the former Chairman & Managing
Director, Shri Allen C.A. Pereira and other outgoing Directors.
12. ACKNOWLEDGMENTS
The Board of Directors wishes to express sincere thanks to the
Government of India, the Reserve Bank of India, the Securities and
Exchange Board of India, Insurance Regulatory and Development
Authority, Indian Banksà Association and Stock Exchanges for their
valuable advice and support; to the customers and shareholders for
their patronage; to the correspondents and associates for their
co-operation and to all the members of staff of ÃMahabank Family" for
their unstinted commitment and contribution to the overall development
of the Bank.
For and on behalf of the Board of Directors
(Anup S. Bhattacharya)
Chairman and Managing Director
Pune
April 30, 2011
Mar 31, 2010
2.16 Income, Expenditure and Profitability
There has been a rise in total income from Rs. 4,791.58 crore at March
2009 to Rs. 5,326.81 crore at March 2010, i.e. a growth of 11.17 per
cent during the year. The details of income components are as under:
(Rs. in crore)
Particulars 2008-09 2009-10 Variation (%)
Interest/ discount on
advances/ bills 3266.60 3369.63 3.15
Income on investments 989.84 1297.90 31.12
Interest on interbank lending & 35.12 68.03 93.71
other interest
Total interest income 4291.56 4735.56 10.35
Non-interest income 500.02 591 -2418.24
Total income 4791.58 5826.81 11.17
Interest on deposits 2783.22 3183.06 14.37
Interest on borrowings 251.81 256.25 1.76
Interest expenditure 3035.03 3439.31 13.32
Staff expenses 579.62 655.50 13.09
Non staff expenses 383.40 417.45 8.88
Total non interest expenses 963.02 1072.95 11.41
Total operating expenses 3998.05 4512.25 12.86
Operating profit 793.52 814.55 2.65
Provisions and contingencies 418.36 374.97 -10.37
Net profit 375.171 439.581 17.17
2.17 Financial Ratios
Particulars 2008-09 2009-10
EPS (Rs.) 8.71 10.21
Cost to income ratio (%) 54.82 56.85
Return on assets (%) 0.72 0.70
Return on equity (%) 21.93 21.43
Book value per share (Rs.) 39.74 49.11
Profit per branch (Rs. in lakh) 26.40 30.25
Profit per employee (Rs. in lakh) 2.75 3.21
Business per branch (Rs. in crore) 61.28 71.73
Business per employee (Rs. in crore) 6.39 7.62
Interest income as % to average
working funds 8.29 7.50
Non int. income as % to average
working funds 0.97 0.94
Interest spread as % to average
working funds 2.43 2.05
Operating profit as % to average
working funds 1.53 1.29
Staff expenses to average working funds 1.12 1.04
Dividend (%) 15.00 20.00
2.18 Dividend
The Board of Directors have proposed a dividend of 20.00 per cent (i.e.
Rs. 2.00 per share) for the year ended 31.03.2010.
3. ORGANISATION AND SUPPORT SYSTEM
For the quick and efficient decision making, the Bank took steps in
opening specialized branches and introducing technology based services
and support systems. Three retail credit hubs were established during
the year one each at Pune, Mumbai and Delhi to facilitate robust and
qualitative growth in retail credit with special focus on housing
loans.
Five Asset Recovery branches were also set up one each at Pune, Mumbai,
Nagpur, Kolkata and Aurangabad to provide greater thrust to the legal
and administrative measures for recovery of NPAs.
3.1 Branch Network and Expansion
During the year, the Bank opened 33 new branches. As on 31.03.2010, the
total branch network comprised of 1453 branches spread over 22 states
and 2 union territories. The branch network includes specialized
branches for foreign exchange, government business, treasury &
international banking, industrial finance, micro, small and medium
enterprises including small- scale industry, hi-tech agriculture,
pension payment, pension processing, retail credit and asset recovery.
Area wise classification of branches as on 31.03.2010 is given in the
table below:
Sr.
No. Classification As on 31.03.09 As on 31.03.10
1 Rural 520 526
2 Semi-Urban 262 266
3 Urban 271 281
4 Metropolitan 368 380
Total 1421 1453
The Bank has on hand 79 licenses for opening of new branches including
7 branches in the North East states of Assam, Arunachal Pradesh, Sikkim
and Meghalaya.
3.2 Human Resource
As on 31.03.2010, the Bank had a human resource of 13,673 employees
comprising of 4,448 Officers, 6,356 Clerks and 2,869 Sub-staff.
3.2.1 Human Resource Development
The Bank has put in place a comprehensive HRM Policy Document that
provides road map for acquiring need based and appropriate human
resources, its development and retention through training, job
enrichment, reward, recognition and accountability for performance,
career progression and welfare.
During the year, internal promotion process was carried out and 244
clerks were promoted to Officer cadre.
682 employees ceased to be in service during the year on account of
retirement, resignation and other reasons.
The Bank recruited 176 Clerks and 312 Officers including 129 Specialist
Officers in various disciplines viz., Treasury, Risk Management,
Marketing, Human Resources, Agriculture, Security, Information
Technology and Law. In February 2010 the Bank has completed
recruitment of 100 Post Graduates in Business Management /
Administration from the campuses of reputed Business Management
Schools. Out of total 489 persons recruited during the year, 166
persons belong to SC/ST and OBC categories.
The Schemes of reward and recognition to officers and staff for
outstanding contribution to business development, customer service
includes membership to the Chairmans Club, Better Managed Branch /
Region Trophy, cash incentives to all members of staff of Best
Performing branches besides deputation for training at prestigious
institutions in India and abroad.
The Bank has been allocating upto 3 per cent of its net profits towards
schemes for the welfare of staff. The schemes are administered by a
Trust. The Bank has endeavoured to promote a healthy industrial
relations climate through fair, transparent and firm handling of issues
keeping in view the interest of all stakeholders.
3.2.2 The Bank has been complying with the Reservation Policy of
Government of India. Special Cells at Central Office and all Regional
Offices are functioning to monitor the implementation of the
Reservation Policy and to redress grievances of SC/ ST/ OBC/ Physically
Challenged employees as weil as Ex- servicemen. The Bank has designated
two Chief Liaison Officers at Central Office and has set up SC/ST Cells
at each of its 32 Regional Offices for the purpose. During the year,
periodical meetings were held with SC/ ST/ OBC Employees Association
to discuss implementation of reservation policy and other
constitutional safeguards and also to facilitate involvement in
business growth. Similar meetings were also held at Regional level.
The numbers of employees belonging to different categories are as
under:
S.NO EMPLOYEES NO. OF PERCENTAGE
EMPLOYEES TO TOTAL
1. Women 2954 21.61%
2. Physically Challenged 199 1.45%
3 SC Employees 2754 20.14%
4 ST Employees 951 6.96%
5. OBC Employees 617 4.51%
Rosters have been maintained as per Govt, guidelines and are regularly
inspected/ checked.
3.2.3 Training Activities
The Bank has a Training system which facilitates attention to regular/
periodic assessment of skill gaps at various levels in relation to
existing and emerging business opportunities, Skill building in Credit,
Forex, Customer Relationship Management, Marketing of Products and
Services, Credit Monitoring and Recovery, Risk Management, Technology
based Banking, Branch Management. Complying with statutory, legal and
policy requirements and Preventive Vigilance received special attention
during the year.
The training programmes were also held on thrust areas like financing
SMEs, retail lending, agriculture finance and rural development.
Presently, the Bank has an apex Training College with three training
establishments operating under it, one each at Mumbai, Nagpur and Pune.
Information Technology Training Institute and Computer Labs train the
officers and staff to utilize Information Technology for effective
customer service and efficient back office functions.
During the year, all the training establishments of the Bank together
conducted a total of 504 programmes, out of which 191 were for
officers, 280 for clerks and 33 for sub-staff members.
A total of 10,047 employees participated in various training programmes
during the year, in-house and external, comprising of 5,044 officers,
4,366 clerks and 637 sub-staff members, of whom 2,036 were SC
employees, 458 ST employees and 1,358 women employees. 1,192 members of
staff were trained to handle the Core Banking Solution (CBS) software
for efficient customer service and back office function.
10 Executives/ Officers were deputed abroad for training programmes,
participation in seminars/ international meets etc. for facilitating
global experience and exposure to developments taking place in Banking
and Financial services.
A total of 397 staff members from 19 Regions were covered under Camp/
Locational Training.
The IT Labs across the country in addition to the existing training
infrastructure cater to the training needs of the end-users at the
branches and regional offices. During the year, 7,826 staff members
were imparted training under CBS.
Executive Development Programmes were also held during the year for
building skills and enhancing efficiency.
3.3 Information Technology
The Bank has been leveraging the tools of Information and Communication
Technolgy for improving the operational capabilities and customer
service. The year 2009-2010 has been a landmark year in the chronicle
of the Bank as far as technology implementation and up-scaling are
concerned. The Bank completed the process of networking of all the
1,453 branches and bringing them under Centralized Solution on February
2,2010, thereby achieving 100% CBS. The Bank offers a bouquet of
customer-centric IT products and services as part of its endeavour to
be a one stop mall for banking and financial services.
3.3.1 Core Banking Solution (CBS)
In addition to covering all branches, the Bank has brought all the 32
Regional Offices under CBS fold.
The Bank has implemented FOREX module under CBS at all the 28 FEX
centers and e-Treasury at TIBD. The Anti Money Laundering (AML) Module
has been implemented at 1,258 branches generating various statutory
reports. The Bank is in the final stages of implementing other modules
like e-Credit, Performance Budgeting, Transfer Pricing, Asset Liability
Management (ALM), Customer Relationship Management (CRM) etc.
3.3.2 New Initiatives
Welcome Kit - Issuance of Mahabank Insta Debit Card: Issuance of VISA
ATM Debit Card (Insta-Card) as Welcome Kit at the time of opening of
accounts for Savings and Current Accounts.
The Mobile Banking product Mafia Mobile was launched offering services
like balance enquiry, view last three transactions, cheque status
enquiry, request for cheque book / statement of accounts, change MPIN
and intra bank fund transfer up to Rs.50,000 per day.
Maha E-Statement - Account statement on email: A customer centric
product Maha e-statement for sending weekly / monthly electronic
statements for saving, current, cash credit and loan accounts
automatically to the registered customers via e-mail.
SMS Alerts for transactions: Sending transaction alerts and reminders
to customers for the transactions done by them.
Online Share Trading - Maha e-Trade: For facilitating safe and easy
online share trading for its customers, the Bank has entered into an
arrangement with three vendors viz., M/s. Religare Securities Pvt.
Ltd., M/s. Munoth Securities and M/s. Enam Securities.
Online Shopping/e-Commerce through Net Banking: Facilitating e-commerce
transactions including online shopping, utility bill payments, airline
ticketing etc through the Internet.
Electronic Cheque Deposit System: Facilitating deposit of cheques for
collection and obtaining instant acknowledgement with cheque image has
been rolled out at 15 centers on a pilot basis.
Application Supported by Blocked Amount (ASBA): Facility to apply for
public offers, based on lien marking (without remitting the share
application money) as per SEBI guidelines has been extended to retail
investors.
Queue Management System for customers: An electronic queue management
system for streamlining the customer service at frontline counters has
been implemented for the customers at select branches in Pune, Nasik
and Delhi.
Implementation of CBS in Regional Rural Bank (RRB): As per directives
of the Government of India, the Bank has initiated steps to implement
CBS in the Maharashtra Gramin Bank, a RRB sponsored by the Bank.
3.3.3 Data Centre & Disaster Recovery Site
The Bank has its own Data Center (CMM Level III) at Pune to take care
of the CBS infrastructure requirements with Disaster Recovery (DR) site
at Hyderabad. Disaster Recovery Drills were conducted twice during the
year and the systems have been tuned up to ensure business continuity
under various contingencies.
3.3.4 ATM Network
The Banks ATM Network of 345 ATMs is fully stabilized and VISA
enabled. Card base has crossed 12.66 lakh. Average cash dispensed per
day is Rs. 13.00 crore.
The Bank has also joined National Financial Switch (NFS) Network for
broadening its ATM Network and enabling the customers to access more
than 50,000 ATMs all over India.
Eleven ATMs are Bio-metric for the benefit of those customers,
including pensioners, who do not find the regular ATMs convenient. The
Bank is in the process of installing additional 75 ATMs during the
Platinum Jubilee Year celebrations.
3.3.5 Corporate Network
The Bank has established its Corporate Network MAHANET with classical
leased lines/ISDNs and VSATs. All branches, Regional Offices, Training
Colleges/Centers and Central Office are now connected. The Bank has
used VSATs (Pooled Bandwidth through VSAT connectivity) for networking
640 plus rural and semi-urban branches during the year.
Applications like CBS, ATM Network, RTGS, Demat, INTRANET, Credit Risk
Rating, Online Tax Collection System (OLTAS), etc. are put to use
through MAHANET.
IP Telephones are extensively used through MAHANET at all the Regional
offices, CBS branches and Head office.
3.3.6 RTGS/NEFT
Straight-Through-Processing (STP) has been introduced for RTGS/NEFT
system at all CBS branches facilitating inter bank funds transfer
without manual intervention.
3.3.7 Internet/ Phone/ SMS Banking
The Bank has implemented the Net Banking suite-Internet Banking/Phone
Banking and SMS Banking with online and offline request processing and
e-payment of direct taxes. As on 31.03.2010, 52,060 users under
Internet Banking, 13,842 under Phone Banking and 20,777 users under SMS
Banking are utilizing the facility.
3.3.8 Information System Security Policy
The Bank has put in place its Information System Security Policy (ISSP)
comprising of 32 different policy documents and the same are updated
periodically to keep pace with developments. The Policy document has
been circulated to all members of staff of the Bank for compliance. The
policy has been implemented at 1,113 branches.
3.3.9 Videoconferencing
MPLS Connectivity for Video Conferencing has been installed and
commissioned for better connectivity and quality conferencing. This
facility is being used for review meetings with Regional Heads,
Managers of strategically important branches and interface with
officers and staff attending training.
3.3.10 Business Process Reengineering (BPR)
As part of BPR, the Bank had implemented centralized clearing system
through 14 service branches already migrated into CBS and Centralized
Pension Payment System for Central Government Pensions. Other BPR
activities like Centralized Cheque Book Issuance, Personalized Cheque
Printing, and Centralized Customer Statement Printing and Dispatch
would be explored during the year 2010-11.
3.3.11 In-House Software Development
The Bank is having a well-trained pool of software developers
continuously engaged in development of various systems as per the
requirement of user departments, Regional Offices and Central Office
The major systems developed and implemented are Regional Office
Software (ROSW), HRM Software (Payroll and other modules), Branch
Inspection Software (BRAINS), Online Tax Collection System (OLTAS),
Credit Risk Rating System, PF System, INTRANET, ATM card tracking etc.
3.4 Vigilance
Vigilance activity in the Bank is an integral part of the managerial
function. Its objective is to enhance the level of managerial
efficiency, effectiveness and to ensure a proper climate for an
efficient administration, where officials can perform their duties
without fear or favour.
Vigilance activity in the Bank recognizes the need for a judicious mix
of commercial decision making process, transparency and accountability.
Preventive Vigilance is an important aspect of vigilance. The Bank has
taken various measures for improving decision making, administration
and operations.
- In accordance with CVC directives, Vigilance Committees have been
formed at branches having staff of 20 and more, to review/monitor
sensitive and fraud prone areas and report abnormalities observed
therein, if any.
- Communication is sent to all the branches/regions periodically
educating them about the modus operandi adopted in various frauds and
advising precautions to be taken to guard against such incidents.
- Vigilance Awareness Week is observed in the Bank during which
period meetings with staff and general public are held by
branches/regions. Lectures/talks by eminent personalities, emphasizing
the need to be vigilant in the present environment were arranged.
- Sessions on "Preventive Vigilance" are included in the training
programmes conducted by the Staff College.
- Fraud Risk Management Policy on prevention, detection,
classification and reporting of frauds including action to be taken,
has been issued by the Bank for the guidance and use of the branches
and field functionaries.
3.5 Customer Service
The Bank has over 13.2 million customers and full-fledged grievances
redressal machinery is in place to respond promptly to customer
grievances. Complaint Management Cells are operative in Central Office
as well as in Regional Offices to ensure quick redressal of grievances.
The Committee of the Board on Customer Service meets periodically to
monitor the quality of customer service, redressal of customer
grievances and provide customer satisfaction. The Bank level Standing
Committee on Customer Service also meets regularly to review customer
service related matters and to make improvements.
Regional Office Customer Service Committee and Branch Level Customer
Service Committee are atso set up. A cross section of customers
representing depositors, corporates/ businessmen, senior citizens is
invited to the meetings to provide feedback and suggestions on schemes,
products and services.
The Bank has implemented all major recommendations of Goiporia
Committee and Dr. S. S. Tarapore Committee. The Bank has adopted
policies/operational procedures for Depositing and Collection of
Cheques/ Instruments, Compensation Policy in case of delay in
collection of instruments or loss, policy for collection of dues and
repossession of security, Operational Procedure for Settlement of
Claims of Deceased Depositors. These policies/ procedures are displayed
on the Banks website.
The Bank is also a member of the Banking Codes and Standards Board of
India and has adopted the Revised Code of Banks Commitment to
Customers-August 2009 and Banks Code of Commitment to MSEs for
implementation.
The Bank has in place internet based mechanism for inviting
suggestions/ feedback on services from customers and for providing
acknowledgement and status of their feedback / complaint.
3.6 Information and Facilitation Centre
Mahabank Facilitation Centre has been operating from Mumbai since June
2005 and can be accessed through two Toll Free Numbers which are
1800-222340 and 1800-220888. Toll Free Telephone Numbers have been made
available at 12 major cities. During the year, 21,982 calls were
received on our toll free numbers relating to various products offered
by the Bank, queries and feedback on the Banks services. During the
year, 5,508 complaints were received and redressed through this center.
An Information Facilitation Centre has been set up since July 2001 for
providing information on various schemes and products of the Bank and
any other information/assistance that may be required by customers and
public.
3.7 Risk Management
3.7.1 General
The Banking business is exposed to a wide array of risks as compared to
yesteryears and these risks create a charge over the capital of the
Bank if not managed properly.
The Bank has formulated a comprehensive Risk Management Policy to
effectively identify measure, monitor and control various risks in view
of their implications on the Banks business growth and financial
soundness.
Organizational set up of the Bank for risk management comprises of the
Risk Management Committee of the Board, Executive level committees for
Credit Risk Management, Market Risk Management, Operational Risk
Management and Asset Liability Management, to identify, measure and
take steps to mitigate the risks and monitor them.
3.7.2 Risk Management Systems
3.7.2.1 Credit Risk
For better credit risk management, the Bank has put in place
comprehensive Lending Policy, Loan Review Pol icy and Risk Management
Policy.
The Bank has also set up Credit Approval Grids at various levels and at
Treasury & International Banking Division (TIBD), Mumbai to provide
preliminary clearance through a committee approach on credit and
investment proposals, from the risk view point.
To evaluate the risk perception in a lending proposition, the Bank has
put in place an in-house developed Credit Risk Rating Framework (CRRF)
as desired under Basel II. The Bank has prescribed threshold ratings
for entry level exposures.
The Bank has undertaken migration analysis of credit risk rating and
estimated probability of default in line with Basel II requirements.
Stress testing results are evaluated periodically.
3.7.2.2 Market Risk
Interest Rate Risk is managed through prescriptions of Asset Liability
Management (ALM) Policy which is reviewed regularly. The Asset
Liability Management Committee (ALCO) of the Bank reviews the risk on a
regular basis.
For management of Liquidity Risk, review of structural liquidity and
short term dynamic liquidity is undertaken on an on-going basis. The
Bank has put in place a contingency plan for managing liquidity.
Investment Risk is managed through the prescriptions made in a
comprehensive Investment Management Policy & Investment Risk Management
Policy.
Foreign Exchange Risk is managed by the Bank by stipulating prudential
limits for open foreign exchange position, the aggregate gap position,
Daylight limit, Overnight limit, Net open overnight position, Stop loss
limit, Limit for undertaking swaps/ investment/ borrowing overseas,
inter bank exposure limits etc. These limits are monitored on daily
basis.
The Bank is using Asset Liability Management system for studying and
analyzing the interest rate sensitivity, maturity and liquidity
analysis of assets and liabilities. Models like earnings at risk,
duration and Value at Risk are used for interest rate risk management,
The Asset-Liability Management Committee (ALCO) monitors liquidity
risk, interest rate risk and earnings risks at frequent intervals.
3.7.2.3 Operational Risk Management
The Bank has put in place Board approved policies for Business
Continuity Planning and Operational Risk Management. Policy on
outsourcing facilitates use of the expertise available in the market
with adequate safeguards for risks associated with outsourcing.
3.7.2.4 Basel II
In line with the RBI guidelines, the Bank has migrated to capital
adequacy under New Capital Adequacy Framework (Basel II) on 31.3.2009.
The Bank has provided capital as per Standardized Approach for Credit
Risk,
Standardized Duration Approach for Market Risk and Basic Indicator
Approach for Operational Risk as per RBI guidelines. The Bank has
entered into MoUs with all the four designated external credit rating
agencies, for rating of corporate exposures, as required under Basel II
and has also drawn a roadmap for migrating to the advanced approaches
under Basel II.
The Bank has put in place policy on Internal Capital Adequacy
Assessment Process (ICAAP) covering procedures for identification and
measurement of appropriate level of internal capital in relation to
risks, to meet the requirements of Pillar 2 of Basel II norms. The Bank
has also put in place the policies on Utilization of Credit Risk
Mitigation Techniques, Collateral Management and Disclosures, in line
with Basel II Framework. The Bank has adhered to Disclosure norms as
stipulated in the guidelines of RBI to meet Pillar 3 requirements.
Awareness of Basel II norms among staff is created and continuously
enhanced through training. Knowledge and skill levels of staff at
Central Office are periodically upgraded through participation in
external trainings, workshops and seminars.
3.8 Inspection and Concurrent Audit
The Inspection and Audit system and various measures of internal
control adopted by the Bank ensure identification/assessment and
mitigation of operational risks.
3.8.1 Inspection of branches:
The Bank continued to adhere to the Jilani Committee recommendations
and inspected 1,055 branches during the year, covering 72.60 per cent
of the total branches of the Bank. Similarly, as per RBI guidelines
under Risk Based Supervision, the Bank has undertaken Risk Based
Internal Audit [RBIA] at all these 1,055 branches.
Conference of all inspecting officials and heads of inspection cells
was organized during September 2009 to update them on policies,
procedures, business environment, opportunities and challenges for
banks, emerging areas of risks and their role in alerting the top
management of existing and impending risks at branches and offices.
3.8.2 Surprise Inspection:
In pursuance of the Ghosh committee recommendations, surprise
inspection was carried out at 146 branches focusing mainly on high risk
areas at the branches.
3.8.3 Concurrent Audit
300 Branches were subjected to Concurrent Audit during the year. These
branches covered 62.23 per cent of aggregate deposits and 77.30 per
cent of total advances of the Bank. Four Central Office departments
were also subjected to Concurrent Audit during the period.
3.8.4 Income & Expenses Audit
Income & Expenditure Audit for the period October 2008 to September
2009 was carried out at 670 branches to identify and recover income
leakages, if any. Half yearly Expenditure Audit of all the Regional
Offices was carried out during the year.
3.8.5 Management Audit:
Management Audit of all 32 Regional Offices and 15 departments at
Central Office was carried out for assessing their effectiveness in
terms of supervision and controls.
3.8.6 RBI inspection under Section 35 of the Banking Regulation Act
During the year 2009-10, RBI inspected 23 branches and 6 Regional
Offices under Section 35 of RBI Act.
3.9 Marketing and Publicity
The Bank is utilizing the print and electronic media to create
awareness among customers, prospective customers and citizens at large
about the uniqueness of its services and to facilitate a distinct Brand
of a reliable, responsive banking institution.
During the year, the Bank launched new IT enabled services like Mobile
Banking and Maha-e-Trade etc. Besides the existing tie up with 15
mutual funds, for sale of mutual fund products, the Bank established
similar arrangement with SBI Mutual Fund also.
A dedicated CASA campaign was conducted across India for mobilization
of Current and Savings accounts.
Mrs. Pratibha Devi Singh Patil, Her Excellency the President of India
launched the Banks Platinum Jubilee Celebrations on 26th November 2009
at Pune by unveiling the Platinum Jubilee Logo of the Bank and
declaring adoption of 75 backward villages across the country. The Bank
would endeavour to promote basic sanitation, health, education and
conservation of energy and water resources, self employment, besides
agricultural best practices and banking facility for all households in
these adopted villages. The event received wide coverage in the print
and electronic media, especially on the national television channel,
Doordarshan.
The Bank has also organized cultural programmes by associating
acclaimed artistes in major cities and towns for customers and citizens
as part of the Platinum Jubilee Celebrations.
The fact of the Bank having networked all its branches through Core
Banking Solution has been highlighted in the electronic and print media
in addition to outdoor displays to market its anywhere, anytime banking
capabilities.
3.10 CitizensCharter
The Bank has adopted the Citizens Charter since 2000-01, which details
the duties and responsibilities of the Bank towards its customers and
the mechanism for redressal of customers grievances. The Charter is
displayed at all the branches and on the website of the Bank. The Bank
has also adopted a Citizens Charter on exchange of notes and coins in
line with the guidelines issued by the Reserve Bank of India.
4. SOCIAL BANKING
4.1 Priority Sector Lending
It has been the constant endeavour of the Bank to facilitate equitable
and sustainable economic development by timely and hassle-free
availability of credit for productive purposes to Small and Marginal
Farmers, Micro & Small Enterprises, Retail Traders, Professional & Self
Employed, Women Entrepreneurs and entrepreneurs from economically
weaker sections.
The outstanding advances under Priority Sector as of March 2010
aggregated to Rs.14,232.26 crore, constituting 40.88 per cent of the
Adjusted Net Bank Credit of previous year against the stipulated
minimum target of 40 per cent
The rise in Priority Sector Advances was Rs. 1,996.26 crore over March
2009 in absolute terms.
4.2 Agriculture
The Bank disbursed Rs.3,833.61 crore for agriculture and allied
activities during the year 2009-10. The outstanding advances to
agriculture sector as of 31.03.2010 were Rs.6,249.98 crore i.e. 17.95
per cent of Adjusted Net Bank Credit.
The Bank undertook awareness/sensitization programmes for all the
branches for increasing advances to agriculture. To streamline the
agricultural lending and promote best practices among farmers, the Bank
recruited 140 Agricultural Field Officers and 75 Agricultural Business
Facilitators and has placed them at strategic branches.
4.2.1 The Bank successfully implemented Agriculture Debt Waiver and
Debt Relief Scheme of the Government of India, by reaching out to
86,549 eligible small and marginal farmers for debt waiver involving
Rs.219.19 crore. The number of farmers eligible for debt relief was
48,237.
4.2.2 Mahabank Kisan Credit Card (MKCC)
This scheme gained popularity especially in rural areas where it is
being propagated successfully and vigorously. The Bank has issued
3,32,965 Kisan Credit Cards to farmers involving amount of Rs.1,806.51
crore.
4.3 Micro, Small and Medium Enterprises (MSME)
SMEs are recognized as a major growth engine for the Indian economy.
They generate opportunities for direct and indirect employment by
facilitating use of natural resources and local skills to stem the tide
of migration to urban areas and promote low investment enterprises.
Finance is made available to viable enterprises at an attractive and
low rate of interest. On line enquiry portal is made available on the
Banks website during the year.
A MSME care center has been set up at each of the 32 Regional Offices
of the Bank to handle MSEs problems. The Bank has adopted Simplified
Loan Application for MSEs as devised by IBA and the same is displayed
on the Banks website. The Bank has also adopted Banks Code of
Commitment to Micro and Small Enterprise and it is displayed on the
Banks website.
The Banks lending to Micro, Small and Medium Enterprises which was at
the level of Rs.3,073.92 crore as at 31.03.2009, increased to
Rs.4,069.41 crore as at 31.03.2010, which translates into a y-o-y
growth of 32.39 per cent. This includes fresh credit facilities to the
tune of Rs.2,022.50 crore extended to MSMEs between April 2009 and
March 2010 under the special package announced by the Government of
India in September 2008.
The Bank was presented with the Y. B. Chavan Memorial Award by the
Maharashtra Industrial and Economic Development Association, at the
Maharashtra Economic Summit held at Mumbai on March 12, 2010.
4.3.1 Maha-Entrepreneur
Under the scheme, the Bank is providing for supporting SMEs in rural
areas finance up to Rs.100.00 lakh to Micro and Small Enterprises
without Collateral Security and/ or Third Party Guarantee.
Accounts under the scheme are covered under Credit Guarantee Fund
Scheme for Micro, Small and Medium Enterprises of Government of India.
The Bank is bearing the entire guarantee fee and 50 per cent of annual
service fee, which is to be paid to the Trust under CGFMSE. The Bank
sanctioned loans of Rs. 154.15 crore to 3,293 borrowers under this
scheme upto March 2010. Coverage under Credit Guarantee Fund Scheme has
been more than doubled in FY 2009-10.
5. IMPORTANT SCHEMES / PROJECTS OF THE BANK
5.1 Retail Financing
The Bank is providing retail loans to individuals who are salaried
persons, professionals, businessmen and pensioners for purchase of
consumer durables, two/four wheeler vehicles and also for other
personal needs. During the year 2009-10 the Bank has opened three
Retail Credit Hubs one each at Pune, Mumbai and Delhi. Besides this,
the Bank also started six Retail Loan Cells at Nasik, Nagpur, Indore,
Thane, Aurangabad and Bangalore. The retail lending portfolio grew by
12.11 per cent during the year.
5.2 Housing loan to public
The Bank has in place Housing Loan Scheme to meet the needs of all
economic segments including NRIs. Financing housing in rural and urban
parts of India is a thrust area. The Scheme is simple and
customer-friendly.
The Bank is also implementing Golden Jubilee Rural Housing Scheme of
the Government of India in rural areas having population not exceeding
50,000 (as per 1991 census). The Banks lending to housing sector has
grown by 22.58 per cent during the year to reach the level of
Rs.3,627.27 crore (outstanding) as at 31.03.2010.
5.3 Model Educational Loan scheme
With the objective of ensuring that no deserving student is denied an
opportunity to pursue higher education for financial reasons, the Bank
implements a Model Educational Loan Scheme. As of March 2010, the Bank
had lent Rs. 430.02 crore to 22,463 students. The Bank has provided the
facility of submission of application for education loan through
web-access (on line).
5.4 Aadhar Scheme for Pensioners
The Bank has introduced a special scheme called Aadhar for catering
to the personal credit needs of the pensioners. This scheme has evoked
an encouraging response from the pensioners and has enabled them to
meet their financial needs such as medical expenses, travel plans etc.
Outstanding advances under the Scheme stood at Rs.96.69 crore as on
31.3.2010.
5.5 Finance for Non-conventional Sources of Energy
The Bank has been implementing the scheme for financing
non-conventional sources of energy in tune with the Governments policy
by providing interest rate subsidy in respect of loans given for
purchase of Solar Water Heaters since September 1998. During the year,
the Bank has sanctioned 1416 cases with loans amounting to Rs.5.74
crore under the scheme.
5.6 Micro Finance
The Bank has always recognized the importance of credit to rural and
urban poor for taking economic activity. The SHGs have proved to be
effective instruments for empowerment of women. The Bank has actively
financed non-traditional activities of various Self Help Groups (SHGs).
As on 31.03.2010, there were 75,015 SHGs formed by the Bank, out of
which 73,208 SHGs had availed aggregate financial assistance of
Rs.149.10 crore from the Bank. Repayment of these loans has been
satisfactory and the Bank continues to encourage lending to SHGs.
5.7 Swarna Jayanti Shahari Rozgar Yojana (SJSRY) (Golden Jubilee Urban
Employment Scheme)
The Bank has been implementing the scheme since 1997 and during the
year, the Bank sanctioned loans to 1,704 beneficiaries under the
scheme.
5.8 Assistance to SC/ST Category
The Bank has been actively extending finance to SC/ST beneficiaries
through various schemes. Total finance as of March 2010 to SC/ST
beneficiaries stood at Rs.687.77 crore, covering 80,957 beneficiaries.
5.9 Advances to Minority Community
A special cell has been set up at Central Office to review and ensure
smooth flow of Credit to minority community. As of March 2010, the
outstanding advances to minority communities were at Rs.770.93 crore to
60,306 beneficiaries.
5.10 Women Empowerment
Ever since the year 2001 (the Year of Women), the Bank is
implementing the 13-point action plan in letter and spirit. The total
credit extended to women beneficiaries amounted to Rs. 1,796.88 crore
covering 1,73,537 women borrowers as on 31.03.2010.
6. CORPORATE SOCIAL RESPONSIBILITY
- On the eve of the Banks Platinum Jubilee celebrations during the
year 2009-10 the Bank has selected 75 villages under "Mahabank Platinum
Gramin Unnati Prakalp" (Mahabank Platinum Village Development
Programme) for their overall socio-economic development, with emphasis
on cleanliness, health, education, drinking water, housing,
financial inclusion, rain water harvesting and water shed development
programmes. These villages are located in the states of Maharashtra,
Karnataka, Andhra Pradesh, Madhya Pradesh, Goa, Chhattisgarh and
Gujarat.
- The Rural Development Centres at Hadapsar and Bhigwan in Pune
District of Maharashtra have been undertaking various developmental
activities for the benefit of farmers viz. Lab to Land Project,
Re-development of Saline Soils, Soil Testing and offering advice on the
use of fertilizers.
- A Trust viz. Mahabank Agricultural Research and Rural Development
Foundation (MARDEF) undertakes various projects and village improvement
programmes. MARDEF is imparting training to farmers on various subjects
in agriculture, e.g. dairy, emu farming, goat rearing, best practices
in grape farming, application of fertilizers, agriculture credit
schemes, etc.
- Financial Inclusion: As a part of corporate social responsibility,
Financial Inclusion has been rolled out at Nandurbar, Malhar Peth
(Satara) and Parvati (Pune) in Maharashtra.
- Mahabank Agri Bulletin is published every quarter with focus on new
trends in agriculture. An interactive access to farmers/villagers is
provided at doorstep in Pune and Satara districts through "Krishi
Mitra", a mobile van carrying Touch Screen Facility and the officials
accompanying the vehicle provide information to farmers on various
schemes of the Bank.
- The Bank has established Mahabank Self Employment Training Institute
(MSETI) for providing training to rural youth and women to enable them
to acquire skills for self-employment through small business
enterprises. The Institute has centres at Pune, Nagpur, Aurangabad,
Amravati and Nasik. The Institute has so far imparted training to 5,742
youths and has achieved settlement rate of 71 per cent.
- Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank
of Maharashtra and National Institute of Bank Management is actively
involved in formation, nurturing, training and ensuring linkage of SHGs
to Bank Credit. The GMVBVM also helps SHGs in marketing products of
SHGs through outlets established in Pune City under the name "SAVITRI".
The GMVBVM guides and actively helps SHGs for selection and purchase of
raw materials and quality production.
- The Bank started a novel project for counseling farmers in six
districts of Vidarbha area in Maharashtra State on different subjects,
like agriculture, animal husbandry etc. under the "Mahabank Vidarbha
Shetkari Jagruti Abhiyan".
7. Lead Bank Scheme
7.1 The Bank has Lead Bank responsibility in six districts of
Maharashtra State viz. Aurangabad, Jalna, Nasik, Pune, Satara and
Thane. Every year credit plans for the districts are prepared and
implemented with the cooperation of other banks. Performance during the
year in respect of our lead districts was 116 per cent of the targets.
7.2 State Level Bankers Committee
The Bank is the Convenor of State Level Bankers Committee (SLBC) for
the State of Maharashtra and the Bank monitored implementation of State
Annual Credit Plans and Government sponsored schemes in the state.
In order to speed up the work of identification of villages for
providing banking services in every village having population of over
2000, a meeting of Lead District Managers was convened by SLBC on
24.02.2010 at Pune. Accordingly, 4,348 un-banked villages having
population over 2000 were identified in 33 districts of Maharashtra and
were allocated among banks to extend banking facilities and achieve
Financial Inclusion.
As per the recommendations of High level Committee for review of Lead
Bank Scheme, SLBC has formed 11 Sub-Committees on various subjects for
effective implementation of Lead Bank Scheme.
During the year, three SLBC and two Steering Committee meetings were
held.
7.3 Road Map on Financial Inclusion
The RBI in collaboration with Government of India has introduced the
concept of Financial Inclusion which envisages delivery of banking
services at an affordable cost to the vast sections of disadvantaged
and low income groups so as to ensure inclusive growth.
The Bank has drawn up a road map to provide banking services through a
banking outlet in every village having a population of over 2000, and
such banking services may be provided through the various forms of
ICT-based channels.
The Bank has identified 1,215 villages in 7 states and proposes to
provide Banking services using ICT through existing 484 branches, new
branches and/or Business Correspondents by 2012.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 The Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO)
The Company was established in 1946 as a wholly owned subsidiary of the
Bank to provide services auxiliary to banking, such as:
- Drafting & Execution of will
- Management of private trusts
- Management of public charitable trusts
- Management of investments & house properties as attorney
- Guardianship of minors property
- Consultation for sale/purchase of property
- Filing of Income-Tax Returns for individuals
During the year 2009-10, 20 new Trusts were added to its client base,
bringing the total number of Public and Private Trusts to 1,051 under
its management. New wills added during the year were 59 bringing the
total number of Wills in custody and execution to 979.
The Company is presently managing 116 properties under Power of
Attorney. The Company also acts as Trustee in respect of 137 policies
under Married Womens Property Act and as Court appointed Guardian for
minors property in 10 cases.
8.2 Regional Rural Banks
Bank of Maharashtra had originally sponsored three RRBs viz.,
Marathwada Gramin Bank, Aurangabad-Jalna Gramin Bank and Thane Gramin
Bank. As per the policy of the Government of India, process of
amalgamation of RRBs was initiated and accordingly, during the year
2007-08, amalgamation of two erstwhile RRBs named Aurangabad - Jalna
Gramin Bank and Thane Gramin Bank took place and Maharashtra Godavari
Gramin Bank (MGGB) came in to existence w.e.f. March 25, 2008.
In the second phase during 2009-10, the erstwhile Marathwada Gramin
Bank (MGB) and Maharashtra Godavari Gramin Bank (MGGB) were merged and
a new entity named "Maharashtra Gramin Bank" came into existence on
July 20, 2009 with Head Quarters at Nanded (Maharashtra).
In view of the above, Bank of Maharashtra has now only one RRB,
covering 16 of the 33 districts in Maharashtra with 323 branches. The
Sponsor bank has initiated necessary steps to bring all the branches
under CBS by September 2011.
9. PROGRESSIVE USE OF OFFICIAL LANGUAGE
The Bank received 2nd Indira Gandhi Rajbhasha Shield at the hands of
Her Excellency the President of India on 14.09.2009 at New Delhi for
better use of Hindi.
The Bank is the Convenor Bank for Town Official Language Implementation
Committee (TOLIC) in Pune, Mumbai and Solapur. Meetings of these
committees were hetd regularly during the year.
The TOLIC at Mumbai and Pune have secured first and third prizes
respectively from the Rajbhasha Vibhag, Ministry of Home Affairs, Govt,
of India on 27th March, 2010.
The Banks House Magazine secured Second Prize under the Reserve Bank
of India Bilingual House Magazine competition for the year 2008-09.
The Bank also received First Prize under Reserve Bank of India
Rajbhasha Shield Scheme for both "A" and "B" regions (predominantly
Hindi speaking) and Fourth Prize for C region for the year 2007-08 at a
function held at Mumbai on 03.06.2009 for excellent use of Hindi.
10. DIRECTORS RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts
for the year ended 31.03.2010:
- The applicable accounting standards of the Institute of Chartered
Accountants of India, have been followed along with proper explanation
relating to material departures, if any;
- The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India, are consistently applied and proper
disclosures are made for changes, if any;
- Reasonable and prudent judgment and estimates were made so as to give
a true and fair view of the state of affairs of the Bank at the end of
the financial year and the profit of the Bank for the year;
- Proper and sufficient care was taken for maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks, in India; and
- The accounts have been prepared on a going concern basis.
11. CHANGES IN THE BOARD OF DIRECTORS
During the year 2009-10, the following changes took place in the Board
of Directors:
Shri. R.K. Deshpande ceased to be the Director w.e.f 3rd July, 2009 on
completion of tenure.
Shri. D.R. Tuljapurkar ceased to be the Director w.e.f. 24th September,
2009 on completion of tenure.
The Board of Directors place on record their sincere appreciation for
the valuable contribution made by the outgoing Directors.
12. ACKNOWLEDGEMENTS
The Board of Directors wish to express sincere thanks to the Government
of India, the Reserve Bank of India, the Securities and Exchange Board
of India, Insurance Regulatory and Development Authority, Indian Banks
Association and Stock Exchanges for their valuable guidance and
support; to the customers and shareholders for their patronage; to the
correspondents and associates for their co-operation and to all the
members of staff of "Mahabank" for their unstinted commitment and
contribution to the growth and development of the Bank.
For and on behalf of the Board of Directors,
Pune (Allen C. A. Pareira)
30th April, 2010 Chairman and Managing Director