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    Bank of India

    Directors Report



    Market Cap.(`) 60368.38 Cr. P/BV 1.12 Book Value (`) 118.45
    52 Week High/Low ( ` ) 156/68 FV/ML 10/1 P/E(X) 15.73
    Book Closure 20/06/2023 EPS (`) 8.43 Div Yield (%) 1.51
    You can view full text of the latest Director's Report for the company.
    Year End :2023-03

    1. GLOBAL SCENARIO

    The year 2022-23 was unique in terms of multiple shocks and challenges leading to economic uncertainty, geopolitical hostilities, financial volatility triggered by Russia Ukraine war disrupting the restoration of the supply chains and hindering the global economic recovery process. The result was persistent build up of inflationary pressures across the globe in terms of soaring prices of food, fuel and fertilizer. To combat this situation, Central Banks throughout the world responded with monetary policy tightening and fast rise in policy rates. This posed a downside risk to global economic growth prospects due to contraction in consumption and output. As per the estimates by the IMF, as against growth of 6.4% during 2021, the global output contracted to 3.4% during 2022.The advanced economies grew by 2.7% and the emerging market and developing economies grew by 4.0%. Thus the slowing of global growth accompanied by supply chain disruptions also moderated global trade. Global trade growth slowed from 10.4% in 2021 to 5.1% in 2022. Global inflation increased from 4.7% in 2021 to a high of 8.7% in 2022. There were large currency depreciations in Emerging market economies, capital flight, investor risk aversion and debt distress.

    The renewed phase of turbulence surfaced in global economy towards the end of FY 23 in the form of banking sector turmoil in US and Europe. This brought into picture vulnerabilities in the banking sector and fears of contagion have risen across the broad financial sector.

    2. DOMESTIC ECONOMIC SCENARIO:

    Notwithstanding the challenges from global spillovers, the Indian economy remained on the path of recovery on account of normalization of domestic supply chains, restoration of consumer confidence and rebounding of activity in contact intensive sectors. The economy exhibited resilience & stability due to strong macroeconomic fundamentals, well regulated & capitalized banking sector and robust balance sheets of corporate sector. This spurred a rebound in credit demand facilitated by a large increase in capex by the government.

    As per the latest estimate of the National Statistical Office (NSO), the GDP grew by 7% in 2022-23 amidst global headwinds. With this, Indian economy became one of the fastest growing major economies of the world during 202223. Agriculture and allied sector remained buoyant in 202223 with gross value added registering a growth of 3.3% as a result of record production of food grains, sugarcane, rapeseed and mustard.

    Industrial output measured by the index of industrial production (IIP) registered a growth rate of 5.1% during FY23 as compared to 11.4% last year. Among the three subsectors, manufacturing sector largely shaped the industrial sector recovery but slowdown in global demand affected manufacturing activity in second half of FY 23 and growth moderated to 4.5 %. On the other hand mining recorded growth of 5.8% and electricity generation depicted good growth of 8.9% in 2022-23. As per the use-based classification, primary goods and infrastructure/construction goods recorded robust growth on a y-o-y basis while capital goods production got fillip from government led investment

    in infrastructure. On the other hand, production of consumer goods remained muted with production of consumer durables remaining below the pre-pandemic output levels of 2019-20 and production of consumer non-durables remained almost flat in 2022-23.

    Services sector exhibited rebound in economic activities and revived strongly in 2022-23 led by construction, domestic trade and transport which surpassed their pre-pandemic levels. On the other hand the sectors which faced the major brunt of covid-19 pandemic like aviation, tourism and hospitality have recovered considerably.

    Both Retail inflation (CPI) and WPI remained at elevated level especially during first half of the year due to various factors such as supply side bottleneck, sharp increase in global prices of crude oil, food, fertilizers, and metals. Thus passing through of higher input costs along with renewed supply disruptions in the aftermath of the war accentuated the situation. However with softening of global commodity prices, the promptness of measures taken by the government, normalization of global supply chains and successive hikes in the policy repo rate by the RBI, inflation moderated in second half of the year 2022-23. The overall headline CPI inflation moved up from 5.5 % in 2021-22 to 6.7% in 202223 exhibiting stickiness in core inflation throughout the year above the pre pandemic levels.

    Despite global slowdown and persisting geopolitical tensions, India's merchandise exports grew by 6.7% and reached $ 450.4 billion in 2022-23 as compared to 44.6% growth in the previous year. The major driver of export growth were petroleum products whose share in export basket rose from 16% in FY 22 to 21.6 % in FY 23. Moreover strong growth was witnessed in services exports with record growth of 27.9% led by software services. However merchandise imports grew at a faster rate than exports by 16.5 % owing to strong domestic demand recovery during 2022-23 and touched $714.0 billion during the same period. With this, trade deficit rose by about 38% from the previous year of $192.24billion to $263.6 billion in FY 23. During 2022-23, net inflows under FDI stood at $28 billion, a tad lower than that during 2021-22 (i.e. $38.6 billion). However net portfolio outflows were to the tune of $5.9 billion during the year. For the nine months period during FY23, though the current account deficit (CAD) stood at 2.7% of GDP as against 1.1% during the corresponding period of FY22 but it remained within sustainable level. These factors culminated in decline in foreign Exchange reserves by $28.9 billion from end of March 22 to end of March 23 and stood at $578.4 billion and provided cover of almost 9 months of import projected for 2022-23. Nevertheless, Indian economy appeared resilient on external front also with its vulnerability indicators like external debt (as a ratio to GDP) and others faring better than most peer emerging market economies.

    On fiscal front, with the bouncing back of economy, tax revenues remained robust due to significant increase in GST collections, income tax and corporation tax and there was rationalization of revenue expenditure. The Gross fiscal deficit improved from 6.75% of GDP in FY22 to 6.45% of GDP in FY23. (as per revised estimates). Maiden issuance of Sovereign Green Bonds (SGrBs) by the central government during the year was a landmark development in the fiscal

    arena. The proceeds of the bond will be used in those public sector projects that reduce the emission intensity of the economy.

    3. BANKING AND FINANCIAL SECTOR DEVELOPMENTS:

    During FY23, the banking industry witnessed a higher advances growth and lower deposits growth. The advances registered a double digit growth of 15% against 9.6% in FY22 and deposits grew by 9.6% against 8.9% during FY22. Return of consumer optimism and improvement in business outlook during the year sustained credit growth. Credit flow to all the sub-sectors i.e. agriculture, industrial and services sector increased by 15.4%, 5.7% and 19.8% respectively, which was much higher than that during the previous year except industrial sector. The financial performance of the Banks was encouraging in terms of rise in NII, in the rising interest rate cycle, leading to strong growth in Operating profit, Net profit and improvement in ROA and ROE ratios. The asset quality also considerably improved with GNPA ratio coming below 5% and NNPA to less than 2% and there was containment of fresh slippages.

    With a thrust on digitalization and inclusive growth, 75 Digital Banking units (DBUs) were set up in 75 districts in the country for adopting digital modes of doing banking transactions in the country. The no. of DBUs increased to 84 as on March 31,2023. Moreover RBI introduced Central Bank Digital Currency (CBDC) in phases during the year in the wholesale and retail segments on Nov.1, 2022 and Dec.1,2022 respectively.

    Though RBI's withdrawal of accommodative stance in the monetary policy led to gradual reduction in the level of surplus liquidity in the system, a calibrated approach was followed to ensure availability of liquidity to meet the credit needs of productive sectors of the economy. In April 2022, Standing deposit facility (SDF) was introduced which enabled banks to deposit excess funds to RBI without necessity of collateral in the form of Govt. securities. The aim was effective liquidity management in a collateral free manner. The daily absorption under the SDF during 2022-23 averaged 1.5 lakh Cr while through VRRR auctions the amount absorbed averaged 1.4 lakh Cr. There was 50 basis points increase in CRR to 4.5% which resulted in withdrawal of primary liquidity to the tune of Rs.87,000 Cr from the banking system. The daily net liquidity absorption came down from a daily average of Rs. 6.6 lakh Cr in March 2022 to Rs. 0.14 lakh Cr in March 2023. Moreover to counter frictional liquidity pressures on account of GST payments, advance tax outflows and usual year end tightness, VRRR auctions were conducted from time to time.

    The G-sec yield followed an upward trajectory and hardened initially during the first quarter of FY 2023 on concerns of high inflation worldwide and policy rate hikes across the globe. However change in macroeconomic conditions like lowering of crude oil prices, fall in inflation level, a slower rate of hikes and general moderation in government bond yield in the US brought down the yield in between but again moved up. The 10 year benchmark yield rose from 6.79% as on March 31,2022 to high of 7.50% as on June 30, 2023 and ended up at 7.31% as on March 31,2023.

    The Rupee-USD exchange rate exhibited orderly movement during the year in tandem with global developments mostly with depreciating bias in nominal terms. The Indian rupee has depreciated against USD by 8.3% from April 2022

    to Dec.2022. The main causal factors affecting rupee to depreciate against USD were the outflow in foreign portfolio investment, appreciation of USD against all other currencies, rise in crude oil prices, monetary policy normalization and geopolitical tensions. The Rupee-USD exchange rate moved from Rs.75.79 as on March, 31, 2022 to Rs.82.18 as on March 31,2023. However, the depreciation of rupee against the USD is lower than that of the currencies of emerging market peers.

    The year 2022-23 was significant in terms of numerous policy measures taken by the Govt. and RBI in continuation with past trend for promoting stability, sustainable growth and strengthening the system to remain resilient amidst global uncertainties. RBI withdrew the accommodative stance and cumulatively increased the policy repo rate by 250 basis points to anchor inflationary expectations while fostering growth. The Foreign Trade policy (FTP) 2023 was announced on March 31, 2023 to promote an export friendly environment by enhancing ease of doing business and exploring more trade in Indian rupee. On the fiscal front, capital expenditure of the Government increased by 63.4% in the first eight months of FY 23 leading to crowding in of private investment and increasing animal spirits in the economy spurring capital investment cycle. Moreover with focus on Aatmanirbhar Bharat and Make in India programme, PLI schemes has been extended to other sectors also to enhance manufacturing capabilities. Further, in the Union Budget 2022-23, the Government has announced various growth-oriented measures such as 33% increase in capital investment to the tune of Rs.10 lakh Cr, emphasis on infrastructure expenditure with ‘Gati Shakti', boosting logistics infrastructure for last mile connectivity under National Logistics Policy(NLP), strengthening agricultural extension services through digital public infrastructure etc. to provide a fillip to the growth momentum and cushion against global headwinds.

    BUSINESS REVIEW:1. RESOURCE MOBILISATION:

    There has been an overall CASA growth of Rs 6,684 crore during the FY 2022-23 depicting a YoY growth of 2.72%. During the period the Saving Bank deposits have shown a higher growth of Rs.5,711 crore with 2.64% growth over last year. Bank has also registered growth in current deposits with base figures increasing by Rs 974 crore with 3.26% growth over last year. The TDR has also shown growth of Rs 11,732 crore with 3.91% growth over last year.

    167418 new customer were added to the SB Diamond customer base, an increase of 4.75% YOY with a growth of Rs.7,647 crore in the deposit base of SB Diamond customers. Similarly the 2600 new customer were added to the CD diamond base, an increase of 1.96% growth over last year.

    The CASA ratio stood at 44.73% at the end of FY 2022-23, The bank continues to focus on retails deposits & CASA.

    2. ADVANCES:

    Bank's Global Gross Advances improved from Rs. 4,57,014 crore as on 31.03.2022 to Rs. 5,15,852 crore as on 31.03.2023 showing an improvement of 12.87% on Y-o-Y basis. Gross Domestic Credit registered a moderate growth of 9.55% from Rs. 3,93,991 crore as on 31.03.2022 to Rs. 4,31,637

    crore as on 31.03.2023. Bank caters to specialised needs of Corporates/Mid Corporates through 10 Large Corporate Branches and other Large Branches headed by AGMs/CMs. Further 18 branches at identified centres have been marked for Mid Corporate Business.

    3. RETAIL:

    The Retail loan segment grew at 17.41% and schematic retail growth of 18.01% during FY 2022-23. We kept our special focus on Home Loans and vehicle loans during the year.

    The Home loan segment during the year recorded a growth of 15.60% from Rs. 44,895 crore to Rs. 51,897 crore. The Vehicle Loan segment recorded growth of 31.21% from Rs. 10,353 crore to Rs.13,584 crore during the year.

    Bank has introduced Star Suvidha Express Personal Loan during the year for salaried customers, existing customers who have availed Home Loan, LAP & education loan and for pensioners. The Personal Loan segment recorded a growth of 26.12% from Rs. 5,483 crore to Rs.6,915 crore.

    Bank has tie-up arrangement with Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Kia for vehicle loans. Similarly, tie-ups with Housing.com, Nobroker.com and Prop Tiger for home loans.

    Bank also extends Personal Loans to employees of PSUs/ PSEs/Reputed Corporates/ Institutions under tie up arrangement with employer.

    Apart from Home Loans, Vehicle loans & Personal Loans, we also extend Loan against Property and Education Loans.

    4. MSME (MICRO, SMALL AND MEDIUM ENTERPRISES):

    The MSME sector is the backbone of the Indian economy and plays an important role in the employment and income generation adding to the decentralize growth of the economy with low per capita investment. MSME Sector contributes 30.74% of GDP of Nation and 49.35% of total exports. The MSME sector is expected to rebound sharply with 15-17% growth for the current financial year 2022-23 on the back of demand recovery following the pick-up in economic activity with the gradual easing of Covid restrictions domestically and globally.

    Focus on programmes, such as Make in India, Start Up India, Digital India, Aatmnirbhar Bharat and Ease Reforms have also brought major changes in MSME Credit at Bank's Level.

    The performance under MSME segment of the Bank is as under:

    GROSS MSME ADVANCES (EXCLUDING PWO & URI)

    Particulars

    Mar-22

    Dec-22

    Mar-23

    Growth

    YoY

    Growth

    YOY

    (%)

    GROSS MSME

    64,750

    69,250

    70,777

    6,027

    9.31%

    Highlights of FY 2022-23:

    • During FY 22-23, 4,00,272 new MSME loan accounts have been added for loan amount of Rs.21,424Cr.

    • Bank has sanctioned Rs.8273.58 Cr under the Mudra Loan during the year.

    • ECLGS business reached to the level of Rs. 9002.64 Cr till March '2023.

    • Bank has crossed TReDS business of Rs.2000.00 Cr and stood at Rs. 2,134.38 Cr at the end of March'23

    • In order to amplify MSME portfolio and to penetrate the market of MSME loans, Policy on Business Sourcing Associates (BSA) has been approved during FY 2223. The BSA shall work as extended arm of the bank to connect with prospective MSME borrowers.

    • Bank has digitized the Channel Finance business with launch of its own portal.

    • Bank's centralized processing centres (SMECC/ SMEUC) for MSME loans have been increased to 98 across the country .

    • Bank of India was conferred the MSME BANKING EXCELLENCE AWARD-2022 as Winner in “INNOVATIVE BANK” category and Runners up in “BEST BANK FOR PROMOTING SOCIAL SCHEME” by Chamber of Indian Micro, Small & Medium Enterprises(CIMSME),New Delhi.

    5. AGRICULTURE FINANCE:

    Priority Sector Advances:

    The bank is serving to the priority and agriculture sectors, through its network of rural and semi-urban branches. The Bank has registered an outstanding level of Rs 1,64,411 crore (43.28 % of Average FY 22-23 ANBC) under Priority Sector Advances consisting of Agriculture Rs. 72,366 crore (19.00% of Average FY 22-23 ANBC). Out of which SF & MF Rs.43,244 crore (11.23% of Average FY 22-23 ANBC), SME Rs 68,678 crore out of which MSME Micro Rs. 43,136 crore (11.29% of Average FY 22-23 ANBC), Education Rs 2,206 crore, Housing Rs. 21,050 crore and other priority sector advances is Rs 112 crore. The Bank has achieved the regulatory ratios under Priority sector, SF & MF, MSME Micro and credit to weaker sections of FY 2022-23.

    Amt in crore

    Particulars

    Amt. O/S

    Y-O-Y Growth (Mar 22 / Mar 23)

    % of Marc 23

    Qtrs.

    ANBC

    Mar 22

    Mar 23

    Amt

    %

    Total Agriculture

    66418

    72366

    5948

    8.96

    19.00

    Small & Marginal Farmers

    38927

    43244

    4317

    11.09

    11.23

    Micro Enterprises

    39637

    43136

    3499

    8.83

    11.29

    Priority Sector1

    151600

    164411

    12811

    8.45

    43.28

    *Total Agriculture and Priority Sector includes outstanding of RIDF & PSLC

    Under Agriculture, Bank branches disbursed Rs 34,632 crore, whereas under Small and Marginal Farmers total disbursement during FY 2022-23 was Rs. 26,443 crore. Bank has issued 2.83 lakhs Kisan Credit Cards during the year with credit limits of Rs 4,219 crore for flexible credit

    utilization. The Bank also extends financial assistance under Differential Rate of Interest at concessional rate of interest of 4% to low income groups. The Bank has sanctioned 191 cases under DRI scheme during the year involving Rs 4.95 crore. Bank's credit exposure to the Minority Communities is Rs 18,626 crores as on March 23 (13.59% of Priority Sector Lending against target of 15.00%). Amount O/s as on 31.03.2023 under weaker section is Rs. 56,558 crores (14.75 % for FY 22-23). Bank's finance to Food & Agro Industries as on 31.03.2023 is Rs. 7,348 crore.

    Gold Loan: Gold loans registered incremental growth of Rs.6,187 Cr (YOY growth of 38.72%) during FY 22-23 and stood at Rs. 22,166 crore as on 31.03.2023.

    Self Help Groups (SHGs): Bank has customer base of 6.52 lakhs Self Help Groups (SHGs) as on 31.03.2023 of which 2.76 lakhs SHGs are credit linked including 2.34 lakhs women SHGs as on 31.03.2023.

    National Rural Livelihood Mission (NRLM): It is an

    important poverty eradication programme for rural poor. During the year Bank has disbursed Rs 4,755 crore to 1.76 lakhs borrowers.

    Star Krishi Vikas Kendra (SKVK) : Presently, 138 SKVKs are functional in 61 Zones across all 13 NBGs. SKVK disbursed Rs.7,866 crore in last FY 22-23. In addition to this, 97 Agri Desks are operationalized in SME City centres for focused & quality growth in agriculture portfolio.

    Lead Bank Scheme: The Bank has Lead Bank responsibility in 51 districts spread across five states of Jharkhand (15), Maharashtra (14), Madhya Pradesh (13), Uttar Pradesh (7) and Odisha (2). The Bank is convener of the State Level Bankers' Committee (SLBC) in the state of Jharkhand.

    KCC Saturation: During year 2022-23 we have added 2.83 lakhs new KCC customer under KCC Saturation Campaign.

    FINANCIAL INCLUSION:

    Bank considers Financial Inclusion as a viable business proposition and has shifted outlook from “CSR” to “economic viability”. ICT based solution to support and secure sufficiently low cost transactions required by the financial sector. Financial inclusion drive gained momentum with Pradhan Mantri Jan Dhan Yojna (PMJDY) programme. Bank has provided banking services in unbanked rural areas through ICT led Business Correspondents model.

    PMJDY and Social Security Schemes:

    During the FY 22-23, 16.98 Lakh PMJDY account has been opened. Bank has also actively participated in Social security schemes launched by Govt of India. During the FY 22-23, Bank has covered 31.97 Lakh account under PMSBY (Pradhan Mantri Suraksha Bima Yojana) and 37.82 Lakh account has been covered under PMJJBY (Pradhan Mantri Jivan Jyoti Bima Yojana) in this period. 6.54 Lakh number of APY (Atal Pension Yojana) new subscribers have been canvassed by the Bank in FY 22-23.

    Star Hawker Atamnirbhar Loan (SHAL):

    Star Hawker Atamnirbhar Loan (SHAL)-PMSVANidhi has been launched in June 2020 to provide hassle free Working Capital Demand Loan up to 10,000/- repayable in 12 EMI to Street Vendors under Tranche I. Second Tranche under PMSVANidhi for those street vendors who have repaid/repaid their 1st PMSVANidhi Loan. Under Tranche II, WCDL up to Rs 20,000/- (Minimum Rs 15,000/-) provides to street vendors and it is repayable in 18 months installments. Under Tranche III, WCDL up to Rs 50,000/- (Minimum Rs 30,000/-) provides to street vendors and it is repayable in 36 months installments.

    Till 31.03.2023, we have sanctioned 3.56 lakh cases (99.72%) and total disbursed 3.40 lakhs (95.24%) out of 3.57 Lakhs applications received.

    Star Swarojgar Prashikshan Sansthan (RSETIs):

    Bank is sponsoring 43 RSETIs in the States of Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh, Maharashtra and West Bengal to impart training to Rural Youth. During the FY 22-23 the RSETIs have conducted 1158 training programs and imparted training to 32,341 candidates ensuring settlement of 76.57% (24764) and providing credit linkage to 58.23% (14175) candidates to enable them for gainful employment. All of our 43 RSETIs are graded in “AA” category by MoRD.

    Financial Literacy and credit Counseling Centres (FLCC)

    FLCC/FLCs are established as per Reserve Bank of India guidelines at Rural and Urban Centers at district locations where Bank is having Lead Bank responsibility. Bank's 51 FLCs are functional in all 51 Lead districts. The FLCs in addition to imparting training also undertake remedial counselling on case to case basis for the distressed borrowers, preventive counselling through media, workshops and seminars. Till

    31.03.2023, total 17.21 Lakh needy distressed people were given counseling.

    Centre For Financial Literacy (CFL): Pilot Project

    RBI has advised Banks for expanding the reach of CFL to every block in the Country in phased manner by March 2024. We have been associated as one of the sponsor bank since initial implementation of CFL Pilot Project which stands scaled up w.e.f. 01.12.2021. We were entrusted responsibilities for sponsoring of 106 CFL in first phase and 45 CFLs in Second Phase (w.e.f. December,2022), funded from Depositor Education and Awareness (DEA) / Financial Inclusion Fund (FIF) with some portion to be funded by sponsor bank. Accordingly, we have opened / scaled up 151 CFLs in five States (Jharkhand, Maharashtra, Odisha, Madhya Pradesh & Uttar Pradesh) in collaboration with RBI Identified Five NGOs from 1st December, 2021. Put together, all 151 CFL have conducted 54,553 camps and total 14,26,944 distressed people have been counseled upto

    31.03.2023.

    Regional Rural Banks:

    Post amalgamation, we are sponsoring 3 RRBs, Aryavart Bank (AB),- in Uttar Pradesh, Madhya Pradesh Gramin Bank (MPGB) in Madhya Pradesh and Vidharbha Konkan Gramin Bank (VKGB) in Maharashtra state, covering 82 districts with a network of 2554 branches as on 31.03.2023. All these sponsored RRBs are managed by the Chairmen deputed from Bank of India and the performances are being monitored by General Manager FI & RRB (Div.) from Head Office. All three RRBs Branches and Administrative offices are on CBS platform with system generated report facility. These RRBs are enabled on RTGS, NEFT and ATM platform. All our RRB have a combined business mix of Rs.9,6612 crore as on 31.03.2023.

    7. INTERNATIONAL:

    The Bank has 21 Overseas Branches, 1 Representative Office at Jakarta (Indonesia), 4 Subsidiaries, 1 Associate/ Joint Venture, all spread across 15 countries in 5 Continents of all time zones. The contribution of foreign operations in Bank's global business mix has been 15.75% as on

    31.03.2023.

    Overseas Subsidiaries and Associates:

    i) PT Bank of India Indonesia Tbk

    ii) Bank of India (Tanzania) Ltd

    iii) Bank of India (New Zealand) Ltd

    iv) Bank of India (Uganda) Ltd

    v) Indo-Zambia Bank Ltd. (IZB) - Joint Venture

    8. CREDIT MONITORING:

    Monitoring of the credit portfolio is essential in order to maintain and improve the asset quality of the bank and minimize credit risks. The main objective of Credit Monitoring is to ensure Compliance of sanction terms and end use of funds. It has to further ensure that the credit assets remain in standard category, endeavor made for up-gradation of identified stressed accounts/watch list accounts and take corrective action to prevent slippage of the accounts from performing to non-performing. The Department has been using various tools and methods for identifying and monitoring stressed accounts with signs of weakness /potential default/delinquencies to ensure good asset quality coupled with containment of probable slippages effectively.

    Tools for efficient monitoring & control process:-Early Warning Signal:

    A fully tech based EWS solution is implemented in our Bank since August 2020. Our EWS is fully automated solution with in built well defined work flow. Alerts are generated based on both internal (CBS and Rating Data) and External Data (MCA, CIC etc). The alerts generated helps the Bank for identifying incipient weakness and initiate proactive timely remedial measures. The solution helps the Bank in early identification of Fraud in accounts (if any). This solution also enables the branches for close monitoring of accounts.

    Credit RFA/Fraud examination:

    As per DFS directive, all NPA accounts of Rs.50 Crs & above should be simultaneously be examined for fraud angle. And hence, department is mandatorily examining all the NPA accounts of Rs.50 Crs and above for fraud angle. Further, the accounts wherever EWS indicates something suspicious, is immediately examined to Red Flag and thereafter, the process of fraud examination is initiated for decision within the regulatory timeframe.

    CRILC Reporting:

    Identification of the accounts in SMA category triggers mitigating steps such as follow-up for regularization, restructuring etc. In terms of RBI's revised guidelines, stressed accounts with credit limit of Rs.5 crore and above are reported to RBI on CRILC platform on weekly basis.

    System Asset Classification (SASCL):

    A predictive program in identifying the probable slippages showing overdue of more than two months period based on record of recovery as well as for accounts showing technical irregularities such as non-submission of Stock/Book debt statement, non-review, insufficient/ no credit in CC accounts etc. for last 90 days. This may cause downgrading of accounts if timely corrective action is not taken. These accounts are monitored specifically by various verticals for containment of downgrading of standard assets. A new SASCL format has been devised which is more user friendly and will provide more focused information to the field.

    SMA Monitoring:

    Apart from SASCL, Focus will shift to SMA monitoring this year. Branches will be disciplined to start monitoring SMA 0 accounts so that the remedial actions can be taken at initial steps and the concerned account do not move further to SMA 1 or SASCL. We push SMA data to branches directly instead of NBGs (present practice).

    Collection Management System (CMS):

    We are in process of implementing Collection Management System, which will help us in managing SMA/DNPA portfolio by providing Digital Platform to Branch officials. Following are the scope of work for the proposed solution:

    • SMA Risk Gradation

    • SMA/DNPA account list with all relevant information like Overdue amount/address/Contact Detail etc.

    • Tracking of SMA movement (Roll Forward/Backward)

    • Updating of Collection actions & Customer response, including Promise to Pay

    (PTP)

    • Visibility of past communication

    • Pushing of reminder SMS/IVR/email to the borrower

    • Suggestive corrective action

    • Integrated with Call centre to capture customer response through outbound calling

    • Geo tagging & Suggested next visits based on field officer location

    • MIS for Branch/ZO/NBG/HO for better monitoring

    We expect to launch the proposed Solution during the current FY:

    Credit Process Audit:

    Credit Process Audit is to ensure compliance of Pre and Post disbursement terms of sanction terms/ covenants, where in the disbursing officer, before parting with the Banks funds, has taken all necessary measures for creation/perfection of security with a view to ensure enforceability of the said securities. Now, CPA is Finacle integrated to monitor in realtime.

    Stock Audit:

    We ensure timely conduct of Stock & Receivables audit in eligible accounts and take active/preventive steps wherever warranted. The stock audit is presently applicable to standard advance accounts having working capital exposure of Rs.5 crore and above. It is required to be conducted

    annually. Assets showing inherent signs of weakness, such as out of order position, overdue Bills under Letters of Credit, invocation of guarantees, review overdue etc., which pose a threat to the bank's asset quality, are followed up at various platforms & levels through Tele/ Video conferencing.

    A new menu for stock audit (STKADT) has been developed in Finacle for stock audit MIS, which will enable us to get timely information about the status of Stock Audit in any applicable account.

    Daily marking of NPA:

    The Banks has migrated to daily marking of NPA w.e.f. 15.04.2021 to have more transparency in identification of NPA & for compliance of regulatory guidelines.

    Monitoring of Restructured Accounts (RFCRS portfolio):

    To guard the asset quality of accounts restructured under RFCRS, a dedicated team is formed at Head Office, NBG and Zonal Office level, which ensures close monitoring of RFCRS accounts. Apart from the same, SMS are being sent from HO level to all RFCRS borrowers including the DNPA borrowers.

    Reminder calls from Call Centre:

    A dedicated team of 50 people employed at our call Centre is working for Monitoring of advances. They are engaged in outbound calling for SASCL & SMA borrowers.

    Agencies for Specialised Monitoring (ASM):

    As per IBA guide lines ASM (Agencies for Specialised Monitoring) is appointed in accounts having total Banking exposure of above Rs.250 crore and accounts with exposure of a specialised nature except in some exempted category accounts like Navaratna Accounts and PSU/Government Guaranteed accounts. We are also engaging services of ASM in stressed accounts wherever required.

    Other monitoring tools:

    • Centralized monitoring of Pre-disbursement & post disbursement covenants implemented for strengthening Compliance level.

    • Policies are in place for Red Flagging of accounts on observance of EWS & examination of Fraud angle within a specified timeline in terms of regulatory guidelines. Prompt reporting is ensured once account is declared fraud, in RBI's CRILC platform.

    • SMS & IVR are being sent to SMA borrowers and CC/OD & TL borrowers for repayment intimation. In addition to this, SMS are being sent in vernacular languages as well.

    • Separate list of account where review is overdue for 90 days and where stock statement is due for more than 90 days is being provided to branches on a monthly frequency for aversion of technical slippages.

    9. NPA MANAGEMENT:

    The Bank made sustained relentless efforts for NPA and Written Off recovery by adopting Board approved strategies with activation of Asset Recovery Branches, staff at grass root levels.

    The NPA Position of as on 31.03.2022 & 31.03.2023 are as under:

    (Amount in Crore)

    Particular

    Position as on

    31.03.2022

    31.03.2023

    Gross NPA

    45605

    37686

    Net NPA

    9852

    8054

    Gross NPA (%)

    9.98

    7.31

    Net NPA (%)

    2.34

    1.66

    Provision Coverage Ratio

    (%)

    87.76%

    89.68%

    ABC analysis of NPA

    • During the year, GNPA improved by 267 bps (from 9.98% to 7.31%) whereas NNPA has also improved by 68 bps (from 2.34% to 1.66%) while PCR also increased to 89.68% from 87.76%.

    • Weekly Recovery Camps are being organised at NBG/Zone level whereas “STAR Intensive Recovery campaign” is organised on monthly basis. We have extended “Branch Adalat campaign” to include amount upto Rs. 5.00 crore to maximize recovery in small ticket size NPA accounts.

    • Thrust on recovery in written off accounts. This also helps to improve our Cost to Income Ratio (CIR). For recovery in PWO accounts various strategies are followed such as :

    Pursuing SARFAESI Action, Resolution through NCLT, enforcement of securities of guarantors through SARFAESI/DRT, compromise settlement, Sale through ARC/NARCL, wherever feasible, Resolution through OTS schemes - Star Sanjeevani 2023, BOI-OTS 2023 and NPA management policy etc.

    • For resolution of NPA accounts various campaign will be launched.

    • We are expecting our Gross NPA below 5% and Net NPA ratio below 1.30% by March 2024.

    • We have modified our tailor made scheme for One Time Settlement (OTS) which are non-discretionary & non-discriminatory and scheme re-launched w.e.f

    01.04.2023.

    • Conducting Mega E-auctions every month on Pan-India basis to improve recovery in the accounts.

    • Holding monthly Gold auction for faster resolution for NPA in Gold Loan NPA accounts.

    • Thrust on generation of OTS proposals at each level through participation under Star Intensive recovery Day, Weekly recovery camp, Virtual Recovery Camp and interaction with customers directly.

    • Focus on resolution of stressed asset accounts by selling to ARCs/ through NCLT route.

    • Participation in the National Lok Adalat at various levels.

    10. TREASURY:Forex Business:

    The Treasury manages the foreign exchange business of the bank, providing hedging solutions to the customers through forwards and swaps. Apart from having Centralized Treasury at Mumbai, the Bank has 4 satellite dealing rooms situated at New Delhi, Ahmedabad, Chennai and Kolkata and one centralized back office in Gift city (Ahmedabad) so as to provide better services to the customers. During the FY 22-23, Merchant and Interbank turnover was Rs.1.45 lakh crore and Rs.45.94 lakh crore respectively. The aggregate turnover of Bank's forex business during the year was Rs.47.39 lakh crore. The Treasury actively participates in trading in Currency Futures and is one of the leading banks in all the exchanges. During the FY 22-23, Bank's Turnover in Currency Futures was USD 108.64 Bn. The Bank was awarded as the Top performer in Currency Future (Banks) segment by BSE for FY 21-22.

    Treasury Operations & Investments:

    Bank continued to play an active role in all segments of the market - Money market, Forex, Bonds and Derivatives 2022-23. Bank has maintained a higher level of investments by holding SLR investments in excess of the regulatory requirement of 18.00% of NDTL from time to time to ensure that sufficient liquidity is available by the way of borrowing against excess SLR from Repo/TREPS windows. As on 31.03.2023 the gross SLR investments were Rs.155,027 crore (77.68% of total Investments) and Non-SLR investments stood at Rs.44,544 crore (22.32% of total investments). The Non- SLR investments also includes Recapitalisation bonds of Rs.24,699 crore. M-Duration of SLR AFS portfolio stood at 1.20% as on 31.03.2023 against 0.47% as on 31.03.2022. M-duration of SLR and Non-SLR investment under AFS portfolio as on 31.03.2023 stands at 1.55%. In concurrence with the Green initiatives taken by Government of India, RBI had issued notification for sale of Sovereign Green Bonds, Treasury branch invested Rs 680 Cr in Sovereign Green Bonds. The investments are made in accordance with the Board approved investment policy which is reviewed periodically to respond to market developments/regulatory requirements.

    11. INFORMATION TECHNOLOGY:Website:

    • Bank of India has revamped its Corporate and Global Website (12 Foreign Centers) with the latest Technology in the market with respect to look and feel, user experience with improved and enriched customer journey

    • Built on Liferay Digital Experience Platform (DXP), it enables Code Independent Content Management System and greater flexibility to cater to any complexity of customizations for the needs of business and ease of the customers

    • Hosted on Public Cloud, the website is highly scalable, allowing to seamlessly adjust to changing traffic demands. It also offers improved reliability, better redundancy and failover options to ensure high availability of the website, with increased security.

    • Designed to be responsive and developed keeping in mind the current users trends with proper structured menus to provide easy navigation.

    • Enriched with Google Analytics to capture the behavior of customer and to provide the better services to the customer.

    • Corporate Website is currently available in 3 languages (Hindi, English and Marathi) and apart from this, 9 more Regional Languages(Bengali, Tamil, Telugu, Odiya, Gujarati, Malayalam, Urdu, Kannada and Punjabi) shall be included very soon.

    • Bank's website with new UI/UX design has been made live on 26.11.2022.

    Document Management System:

    • Document Management System has helped various departments to continue their work in an effective way .Various HO departments, branches and zones are accessing DMS in live environment.

    • Statutory Branch Audit (SBA) and Statutory Control Audit (SCA) has been conducted effectively with the help of DMS. All the documents have been made available to the auditors on real-time basis.

    • The Saving Bank (SB) account opening Process through DMS is made live in all the branches linked to 69 ZCODs (Zonal Centralized Operations Department).

    • Templates have been generated for storage and retrieval of necessary documents based on the requests received from different departments (International, HRMS, L&D, DBD,CPD Insurance Claim, UPI Insurance Claim etc.)

    Account Aggregator Framework:

    • The Account Aggregator (AA) Ecosystem is consent based data sharing mechanism that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network.

    • It helps the Lenders\Service Providers to leverage on digital data acquired with the consent (Sahamati) from the customers eliminating the need of physical documentation. Data cannot be shared without the consent of the individual.

    • AA framework was made live on 27.07.2022 with one Aggregator M/s Anumati. Subsequently, 4 other AAs Viz. NADL, FINVU, CAMS and OneMoney have been onboarded on 27.09.2022.

    Cheque Deposit Kiosk:

    • Cheque Deposit Kiosk (CDK) has been implemented in the Bank since 2021 with the view to automate the cheque clearing process.

    • The customers submit the cheque in the Kiosk with minimum required information and upon successful submission acknowledgement slip is generated for the customer.

    • End of Day (EOD) of the CDK is performed by the designated branch officials. After EOD, the cheques submitted in the Kiosk is processed through CTS application and submitted to NPCI.

    • The process reduces the load on the employees and customer can deposit cheque at any e-gallery/Branch lobby.

    MISSCALLPAY:

    • MissCallPay is digital payment offline solution that provides all the functionality of UPI based mobile payments over a feature phone using Missed Call. It does not have any dependency on Internet connection, hence it is suitable for rural and urban under-served population of India.

    • Users can also transact in their local language. Currently 12 local languages are available.

    • MissCallPay P2P solution is one of the distinct option of UPI123Pay

    • User can send money, check balance, set UPI PIN using MissCallPay

    12. MANAGEMENT INFORMATION SYSTEM:E-Platform Project:

    Bank has launched Project E-Platform in April 2021 for Straight through Origination and Processing of all Banking Products (Assets & Liability products) including third party products.

    Phase-wise status of product implementation is under:

    • E-platform phase 1 implementation consists of 20 products. MSME, Retail, Agriculture KCC, Credit Card and self-Onboarding Saving account Digital journeys are launched.

    • Fintech Collaboration - Video KYC, Bank statement analysis, Name Check and Fintech services are integrated with the E-Platform for end to end Digital journeys.

    • Integrated CRM Next Solution is launched with end to end Lead Sourcing & management, Collaboration, Service Management/ Complaint management. Business Correspondents are also integrated with this platform. Other Modules Customer 360, Integrated Campaign management is in implementation phase.

    • Lead Management Portal is made live for all the branches/offices of BOI with customer facing sources , BOI web Site, BOI E-Platform, BOI Customer Care, SMS,Analytics, Maruti Portal (tie-up arrangement), National portal.

    • Complaint Module ,Customer Grievance Portal made Live with real time update of complaints (as and when status updated).

    Next Generation Enterprise Reporting and Analytical Solution Project.

    Bank has initiated RFP process for Building of Analytical Platform and Next Generation reporting Platform.

    Analytics

    The following Analytical models are developed and is in use for different business function :-

    Model Name

    Home Loan TakeOver

    Home Loan Top-Up Model

    MSME Pre - approved Letters

    Third Party Non Life Insurance

    Pre - approved PL to Salaried Customers

    Pre - approved PL to Salaried and Non - salaried Customers

    Third Party Mutual Fund

    Customer Retention Model

    CLTV - For Churn Customers

    Personalized Personal Loan

    Pre - closed TD model

    Customer Churn Prediction Model

    Home Loan

    Vehicle Loan

    MSME Limit Enhancement

    Next Best Action/Product

    CLTV - Customer Segmentation

    MSME CCOD Renewal

    MSME Term Loan Renewal

    Credit Risk Gradation Model

    Executive Dashboard

    BOI pulse is an executive dashboard portal developed in house with enhanced features which shows figures related to Advance, Recovery, Finance, SMA, Deposits and E-platform in one place. It provides access to users through MMS id. It helps to visualise the different, but related information in a tabular and graphical format. It has capability to provide NBG, Zone and Branch wise figures. It includes KPIs of various sectors.

    Other applications developed by In-house team

    Following applications are developed by in-house bank team of MIS department for MSME Department.

    • MSME Review Proposal

    • SMECC lead Management

    • Willful Defaulters

    3. DIGITAL BANKING:

    The Budget & Performance for various digital products or FY 2022-23 as under:

    Product

    As on 31.03.2023

    Total Credit Card

    77,668

    Merchant Acquiring (POS Bharat QR BHIM Aadhaar)

    42,700

    UPI based QR

    6,63,556

    Mobile Banking

    80,32,438

    Internet Banking

    84,63,850

    UPI

    1,55,79,280

    Planned launch of products in FY 2023-24

    • ICCW (Interoperable Cardless Cash Withdrawal) : Facilitate bank's customers who are live on UPI, to withdraw cash from any participating banks' ATMs without using their card

    • Rupay Prepaid Card & Gift Card: Bank is in the process to launch Prepaid card & Gift Card in RuPay Scheme. RuPay Prepaid cards are proposed to provide flexibility to the card holders. The card will be contactless in nature, focusing on retail segment with various in-built features and offers.

    • Regional Language implementation at ATM: Bank is implementing Regional Language option in ATM screen along with English & Hindi.

    • MSME Credit Card: Bank is in process to launch MSME Credit Card in Rupay Scheme.

    • Credit Card Onboarding through E-platform (STP of credit card): Bank is in the process of implementing Eplatform for online onboarding of various products of the bank. Credit card onboarding is also one of the products which will be onboarded through Branch and Web channel.

    • Interoperable Card-based Cash Withdrawal at CRM: Facilitating cash withdrawal for customers of other bank at our CRM. Withdrawal Limits will be in line with regular ATM Cash Withdrawals.

    • Credit Card linking in UPI.

    • API Integration of ASBA IPO uploading process of stock Exchange with BSE

    • Providing e-BG facility to customer.

    • Providing platform to our loan accounts holder to create NACH/ECS mandate in his/her other bank account for collection of our EMI

    Initiatives Implemented- FY 2022-23

    • Digital Banking Units: Bank has opened two DBUs in East Singhbhum and Khurda to deliver the Digital Banking products & services as well as to spread awareness regarding Digital Banking. The purpose of DBU is to accelerate the delivery of financial products, besides improving access to finance for small businesses, Improve Digital Financial Literacy and increase Digital penetration.

    • Trade Finance: To enable the Customers including Branches and department with an appropriate system/ solution which automates the end-to-end process of Trade Finance with adequate controls and to strengthen customer relationship, Bank has implemented a solution (Fusion Trade Innovation) with full front to back with inbuilt workflow management for carrying out Trade Finance business.

    • BOI BIZ Pay: Bank has launched BOI BIZ Pay app, this app will help merchant to generate UPI QR code (Static / Dynamic) for payment acceptance and enables fast, simple & secure online payments using VPA and QR Code. This will provide Real-time credit to merchants, Complaint Management system (P2PM Merchants) and Dynamic MIS generation system.

    • Go green Initiative: Bank has introduced Go green initiative aiming at less use of paper for day to day work/transactions on ATMs. Accordingly, poster was designed to be displayed on BOI ATM screens to encourage people not to print receipt for ATM transaction. Presently it has been deployed and being displayed on screens of all BOI ATMs.

    • DCMS Migration- In order to improve the existing infrastructure, retaining card data at one place and to enhance customer experience we are in process of migrating Debit Card Management system to new vendor. This will provide real time Debit card services such as card issuance, replacement, hot listing, pin generation etc apart from PCI DSS compliance

    • Integration of Loyalty Rewards in Mobile Banking-For transaction using BOI mobile, we have introduced reward points for our Customers to promote digitization and increase digital transaction volume of Bank.

    • CRM Nxt - We have implemented new centralized portal for registering the complaints regarding failed/ unauthorised transations of various channels eg. ATM/PoS/UPI/IMPS. Branches can track the status of complaints using the portal and can reopen the complaints in case of non-satisfaction of customer.

    • Dynamic UPI QR on POS : We have introduced generation of Dynamic QR on existing POS terminals, which can be scanned by the customers through any UPI App.

    • VISA Bingo Debit Card: Bank has introduced Bingo Cards in VISA Scheme. Bingo Cards are exclusively for Students of the age between 15 and 25.

    14. RISK MANAGEMENT:Risk and Control:

    Bank has appropriate mechanism in place to ensure ongoing assessment of relevant risks on a Borrower Level as well as on a Portfolio level to maintain the trade-off between risks and returns. The Board of Directors of the Bank has an overall oversight of all risks in the Bank with specific Committees of the Board constituted to facilitate focused approach to specific risks. The Risk Management Committee of the Board (R.Com), is the subcommittee of the Board which is the apex body for Risk Management, supported by operational level committees of Top Executives for managing various risks, such as Asset Liability Management Committee (ALCO), CRMC (Credit Risk Management Committee), MRMC (Market Risk Management Committee) and CORM (Committee for Operational Risk Management).

    Risk Management includes process of risk identification, measurement, monitoring, mitigation and reporting of all potential risks, in all activities and products in the Bank. These processes are well elaborated under respective policies viz. on Enterprise Wide Risk Management, Credit Risk Management, Operational Risk Management, Market Risk Management, Exposure (Bank Exposure & Large Exposure Framework), Asset Liability Management, Foreign Exchange and Dealing Room operations etc.

    Bank's Risk Management Framework is focused on full integration of risk management into its operations and culture. The integrated risk management framework starts with a risk

    management cycle, consisting of several steps: determining the risk appetite, stress testing, scenario analysis, preparing full scope risk assessment of all segments. Risks are adequately identified, assessed, measured, reported and mitigated. Risk Management is one of the core focus areas of the Bank. The Bank is working to ensure that it adopts global best practices in all the risk areas. This commitment is being achieved by investing both in people and systems and building an enduring risk culture. Bank deploys various tools and techniques for achieving Risk Management objectives viz. Prudential and internal limits Monitoring, Basel Compliant Credit Rating Models, Active liquidity management, ERM Scorecards etc.

    Credit Rating thresholds were based on the performance of the specific industry/sector. Bank uses different internal Credit Risk Assessment Models and scorecards for assessing borrowers credit worthiness. In current FY bank has done the rating model recalibration in view of the changing economic environment and evolving business models, to better capture the risk drivers and further strengthen the onboarding & underwriting standards.

    In the normal course of business Banks experience various risks viz. Credit Risk, Market Risk, Operational Risk, Liquidity Risk and Interest Rate Risk.

    Credit Risk is the possibility of loss resulting from a borrower's failure to repay a loan or meet contractual obligations. Bank has adopted Standardized Approach (SA) for Credit Risk Computation.

    Market risk is possibility of loss to the bank due to movement in market factors viz. Interest Rate, Foreign Exchange Rate, Equity Prices etc. Bank has adopted Standardized Duration Method (SDM) for Market Risk computation.

    Operational Risk is defined as the risk of loss resulting from inadequate or failed internal process, people and systems or external events. Operational Risk includes legal risk, but excludes strategic and reputation risk. Bank calculates Operational Risk Weighted Assets through Basic Indicator Approach (BIA). Bank is in the readiness to adopt New standardized approach for computing Operational Risk Weighted Assets, as mentioned in the draft RBI Guidelines, effective 01st April, 2023.

    The Bank monitors and manages operational risks vis-a-vis a comprehensive set of processes, systems of internal controls, and policies are also in place, to reduce the probability and potential impact of losses from Operational Risks.

    Liquidity Risk is defined as the risk of incurring losses resulting from the inability to meet payment obligations in a timely manner. Such liquidity risk is known as funding liquidity risk. The liquidity risk arising due to inability to find buyer for assets at the market price is known as market liquidity risk. Bank monitors liquidity risk through various statutory liquidity ratios viz LCR , NSFR, Stock liquidity etc. Bank also conducts stress testing for liquidity risk and prepares the contingency funding plan to overcome the stress period, if any.

    Interest Rate Risk can be defined as the risk of losses arising in the portfolio on account of adverse movement in general market interest rates. Bank performs stress testing on banking book as well trading book to ascertain the impact of adverse movement in the interest rate risk and operate within the Board defined limits in Risk Appetite.

    The Bank undertakes Internal Capital Adequacy Assessment Process (ICAAP) on a yearly basis which contains

    assessment / measurement of various risks (Pillar II Risk) along with the pillar I risk, the Risk Appetite of the Bank and appropriate level of internal capital required by the bank in relation to the Banks risk profile. Stress Testing Process is in place for enhancing risk assessment by providing the Bank a better understanding of the likely impact even in extreme unfavorable circumstances. The ICAAP is the process by which the bank ensures that it operates with an appropriate level of capital. It encompasses a large part of what could be considered a complete Enterprise Risk Management (ERM) framework. The ICAAP brings together risk and capital management activities in a form that can be used to support business decisions. Bank also identify the Pillar II risks relevant for the Bank, assess and measure them and suggest the mitigation plan while reporting to risk committee. In last one and half year the regulation around Climate Risk, Sustainable Finance and ESG has been evolving rapidly. Bank has already identified climate risk as an pillar II risk in ICAAP. Further, as the regulation and governance around climate risk has evolved, Bank's Board has adopted ESG Policy (Environment, Social and Governance) for the Bank. ESG policy include the governance structure for taking the cause ahead and also set deliverables for the various departments in the Bank. The ESG policy outlines the Banks intent to move in the direction of net zero as per the country's commitment and also enable to comply with all the regulatory requirement on ESG & related disclosures.

    In addition, Bank has field level Risk Managers at all geographical centers (Zones, National Banking Group, Overseas Branches) to inculcate the risk culture at the field functionary level also.

    Bank's Information Risk Management System has clear objective to protect the bank from Information Security risks in the face of acceleration in cyber-attacks and cyber security threat, specifically to financial institutions. Information security department strengthens controls to protect the brand, reputation and assets of the Bank. Bank is vigilant of the security and privacy of the data related to its patrons and account holders and takes utmost care to protect it from cyber-attacks. Bank has put in place Captive Security Operation Centre (SOC). Bank has implemented information security tools for Real-Time monitoring of Information Security breach attempts / incidents / events on 24x7 basis in order to timely prevent, detect and respond. Advanced security tools like SIEM (Security Information and Event Management), PIM (Privilege Identity Management), DAM (Database Activity Monitoring), WAF (Web Application Firewall), NBAD (Network Behaviour Anomaly Detection), Anti-APT (Advance Persistence Threat) for Web & Email Channels and Anti-DDoS, Data DLP (Data Leakage Prevention) are some of the many security solutions are deployed. Various new security solutions focusing on threat hunting, prevention, detection and response are also put in place. The Bank is ISO 27001:2013 (ISMS) and ISO 22301:2012 (BCMS) certified. Effective brand protection services are put in place to protect Bank's customers from Phishing attacks by way of fake sites. Risk and vulnerability assessment exercises are regularly carried out for all systems with timely remedial activities. Security awareness campaigns, especially with respect to social engineering, are conducted across the Bank encompassing staff as well as customers through various channels of learning and communication.

    15. THIRD PARTY PRODUCTS DIVISION:

    Bank of India acts as Corporate Agents for Two Life Insurance companies, Three General Insurance Companies and Three Standalone Health Insurance companies.

    Bank has adopted Execution model for distribution of Mutual Fund products. In the Mutual Funds business, which is an open architecture the Bank can enter into multiple tie-up arrangements. Our Bank had also entered tie-up agreement with various Asset Management Companies to distribute Mutual Fund products.

    While offering the products and services of Bancassurance & Mutual Fund AMCs, the Bank adheres to the relevant guidelines of RBI / IRDAI / AMFI /SEBI or any other regulator which is binding upon it.

    The Existing Tie up of the Bank with various Insurance companies under each category as well as with Mutual Fund AMC are as follows:

    Existing Tie-ups:-

    Sr.

    No

    Products

    Tie-up Partner

    1

    Life

    1)

    Star Union Dai-ichi Life Insurance

    Insurance

    Company Ltd.

    2)

    LIC of India

    2

    General

    1)

    Reliance General Insurance Co.

    Insurance

    Ltd.

    2)

    Bajaj Allianz General Insurance Co.Ltd.

    3)

    Future Generali India Insurance Co.Ltd.

    2

    Health

    1)

    Star Health & Allied Insurance

    Insurance

    Co. Ltd.

    2)

    Care Health Insurance Co. Ltd.

    3)

    Niva Bupa Insurance Co. Ltd.

    4

    Mutual

    Name of AMCs

    Funds

    1)

    Bank of India Investment Managers Pvt Ltd.

    2)

    UTI Asset Management Co. Pvt. Ltd.

    3)

    HDFC Asset Management Co. Ltd.

    4)

    Kotak Mahindra Asset Management Co. Ltd.

    5)

    Franklin Templeton Asset Mgmt. Pvt. Ltd.

    6)

    Bandhan Mutual Fund (Formerly IDFC Asset Management Co. Pvt. Ltd.)

    7)

    DSP Mutual Fund (Formerly DSP BlackRock Investment Managers Ltd.)

    8)

    Aditya Birla Sun Life Mutual Fund (Formerly Birla Sun Life Asset Management Co. Ltd.)

    9)

    Nippon India Mutual Fund (Formerly Reliance Mutual Fund).

    10)

    SBI Funds Management Private Limited

    Bank has earned Commission for the FY 22-23 from each of the segment as follows:

    (Amt. in Crs).

    TPP Segment

    Commission

    Income

    Life Insurance

    140.36

    General Insurance

    21.75

    Health Insurance

    11.99

    Mutual Fund

    4.14

    TOTAL

    178.24

    16. MARKETING & PUBLICITY:

    Bank of India, implements various Publicity & Public Relations strategies for the Bank which helps to improve its visibility, spread brand awareness amongst general public, customers & all its stake holders. These overall marketing strategies, advertising & publicity activities are intended to create impact on general public and customers for sustained brand recall to translate the same into business growth. Bank has also adopted social media & digital marketing strategies to reach out larger population. Publicity & PR activities are implemented across all geographies with an objective to cater all sections of the society by bringing out various advertisements and communications through various media available viz. hoarding, electronic, digital, print etc. Bank in its Publicity & PR Strategies intend to highlight its Unique Selling Proposition (USP) for continued business growth. Marketing, publicity, advertising & public relations help the bank for sustained brand recall amongst population and the same is considered as an investment in the brand building.

    17. BUSINESS PROCESS RE-ENGINEERING (BPR)

    Bank's BPR Department is in-charge of bringing about any changes in the organizational structure and has the prime responsibility of creation of zones and NBGs. This also convenes meeting for Executive level oversight on new products, processes and changes proposed in existing systems. BPR is the chief coordinator for change management between the various functional departments. The major initiatives taken during 2022-23 are given below:

    Project works/initiatives during FY 22-23:• Creation of One NBGs and One New Zone: A new

    NBG, NBG-Odisha and a zone Surat have been created according to study conducted on potential business opportunities. These will also assist top management with ease of monitoring and will help better customer service.

    • Review of Area Manager Office (AMO) Structure:

    Along with the reorganization of zones, BPR has rationalized the present 21 AMOs offices to 20. This has made the AMOs better focused on customer acquisition and render faster service.

    • Product and Process Re-engineering in the Bank:

    The products of the Bank have been organized to be system friendly and many new digital products introduced to capture large market with contactless internet based banking. This will help the Bank keep

    up with the recent trend of banking transformation and will increase customer engagement and delight in contactless banking at the ease of the individual opting for our Bank's services.

    Rationalization of Service Charges: Service charges have been rationalized in order to make it customer friendly, uniform, automated and remain competitive as per industry trend.

    Star Paramarsh - Staff Suggestion Scheme from the field functionaries: We have included the scheme in product group discussion so that top management will have firsthand knowledge regarding feasible and revolutionary ideas & suggestions of staff which will improve operational efficiency & service effectiveness. Out of 707 suggestions received during the year, 46 have been selected for implementation and Prizes have been awarded to 3 staff members.

    • Improve our Ease Ranking by targeting composite score of over 75% and be amongst the top five banks in the PSB space, by working in close co ordination with cross functional teams from Business Verticals, Risk Management, Credit Monitoring, Recovery, Compliance and HR Departments.

    18. LEGAL & RIGHT TO INFORMATION ACT:

    Bank's Legal department attends to various matters of Opinion, Documentation, Litigation etc. emanating from various other functional departments at Head Office.

    Besides attending to referral matters of various NBGs/ Zones, Domestic Branches/Foreign Branches and Bank's subsidiaries, the Department also caters to the specific needs of specialized Departments of the Bank by Drafting / Vetting of documents of various contracts/ Service Level Agreements (SLAs), Software/Hardware procurement, various types of tie-up arrangements /new products etc.

    The Right to Information Act has taken a pivotal role in the Society and lot many applications are received by the Bank at various levels. Bank has identified Central Public Information Officer and Appellate Authority at various Zones / NBGs. Deputy General Manager (Law) of Legal Department, Head Office is designated as the CPIO of the Bank, and the General Manager, Legal Department is the Appellate Authority. The procedure for disposing of application or appeals involves collecting the desired information from various Departments and supplying the same to the applicant within the fixed time duration of 30 days and also to guide the other Zones / NBG on specific points.

    Moreover, with a view to create awareness among the staff, Legal Department issues circulars and guidance to NBGs/ Zones on the amendments on Statutes and New Legislations.

    In addition to the above, the Legal Department also attends to:

    • Approval of Plaints in respect of suits filed by Bank and Monitoring of said cases.

    • Advising on writs, cases, appeals, claims etc. filed against the Bank, vetting of the applications/affidavits etc. wherever required.

    • Attending to the various queries of Ministry, Reserve

    Bank of India and IBA on different matters including new Legislation/amendments under consideration on various Acts.

    • Opinion on Share transmission matters of Share Dept.

    • Cases against Bank/ Claim against Bank not acknowledged as debt/provision requirement/ follow up with Zones etc.

    • Consolidation of Lok Adalat data received from NBGs/ Zones

    • Collection and compilation of data/statistics pertaining to suit filed/ decreed cases/Lok Adalat and submission to various authorities like Reserve Bank of India, MOF etc. RBS data.

    19. COMPLIANCE:

    Bank has an independent Compliance Department which is headed by an officer of the rank of Chief General Manager who is for regulatory purposes also referred to as Chief Compliance Officer. The core function of the department is to ensure compliance of statutory, regulatory and Bank's internal guidelines for both domestic as well as overseas operations. The department is the single point of contact for RBI and ensures smooth conduct of Risk Based Supervision (RBS) as per prevalent SPARC framework.

    Bank has a Board approved Compliance Function Policy which is framed as per Reserve Bank of India guidelines and is reviewed & updated annually. The policy gives credence to the following components: i) Governance ii) Compliance Risk Assessment iii) Policies, Procedure and related controls iv) Compliance Monitoring and Testing v) Reporting and Communication vi) Training and use of technology to improve compliance and vii) Regulatory interaction and Coordination.

    Having the right tools, to deal with uncertainty and manage risks, both known and unknown, can help improve strategy, improve performance, offer greater insights for decision making, and assure effectiveness over time. Therefore, Compliance Department has adopted technology in compliance function to improve transparency, efficacy, oversight and effectiveness. The Department is also conducting periodic testing exercise to conform adherence and sustenance of RBI guidelines/instructions.

    The Compliance Department is also overseeing compliance function of overseas establishments who follow their respective territory based compliance policies as well as KYC-AML-CFT Policies. Each overseas centre/ branch/ subsidiary has a compliance officer to look after the respective compliance function. Overseas branches comply with the applicable regulatory requirements (home country /host country regulatory guidelines whichever is stringent) and submit confirmations / compliance sustainability reports. The compliance officer of each overseas branch undertakes quarterly compliance testing and submits report to Head Office.

    20. OFFICIAL LANGUAGE:

    The Bank has a well established Official Language Department which ensures the implementation of the provisions relating to the Official Language Policy of the Government of India and the progressive use of Hindi. Our Bank has been awarded Rajbhasha Kirti Puraskar (Third) by the Government of India for excellent implementation of the Official Language Policy during the period under review. For the planned implementation of the official language policy of the government, our bank has issued an annual action plan as per the annual programme of the Government of India. Keeping in view the historic achievement of our country on getting the presidency of G-20, an All India Essay Competition was organized on the occasion of World Hindi Day. On this occasion, a Sulekh Pratiyogita was organized by our New York branch. Keeping in view the Azadi ka Amrit Mahotsav, a booklet was prepared on the biography of 75 freedom fighters. For the dissemination of information related to official language, Rajbhasha webpage on the bank's website was inaugurated by our Executive Director. In order to encourage the use of official language, several reference literature have also been prepared by the zones. Seminars and training programmes have been organized by the Zones and the Head Office on various subjects. Our Zones/TOLIC have received 15 regional level awards from the Government of India. In addition to it, 30 zones and branches have received awards from TOLIC during the year. This year, the Bank has organized a total of 210 Official Language Workshops in which 6866 staff members have been trained. Hindi e-mail competition for the departments of Head Office has been conducted on quarterly basis throughout the year. Hindi Month has been celebrated in the Bank from 14th September to 14th October, 2022. “Rajbhasha Shield Pratiyogita” was organized for the departments of the head office and zones. Every week, articles in hindi language pertaining to well-known personalities are sent by the department to all the offices/branches. The Bank is successfully performing the responsibility of convenorship of 12 TOLIC as entrusted by the Government. Our 04 offices/branches were inspected by the Committee of Parliament on Official Language during the year which was conducted smoothly. Hindi magazine “BOI Varta” is being published by the bank to encourage more work in official language.

    21. HUMAN RESOURCES, LEARNING AND DEVELOPMENT: HUMAN RESOURCES:

    During FY 2022-23, our Bank recruited 774 Staff Officers in General Banking and Specialist cadre in various scales and 2,017 in Clerical cadre. During FY23-24, the Bank has a plan to recruit 540 Staff Officers and 557 clerical staff.

    • In the post pandemic scenario, necessity for innovation seems to be the key to achieve organisational objectives. Through and post- covid, we have maintained our efforts to adapt and respond to the requirements for delivering financial products to our customers and maintaining business continuity through various HR initiatives.

    • Decision making in HR is aimed to be more data-driven to reduce the likelihood of failure and bias. Bank aims to achieve consistency through building capability and continuous learning and development.

    • The various HR initiatives undertaken by the Bank include:

    0 Posh Policy

    0 Succession Planning in critical roles;

    0 Performance Management System;

    0 Talent Management;

    0 Leadership Development;

    0 Employee Engagement Survey (Star Anveshan)

    and

    0 Equal Opportunity Policy

    • Bank has put in place a system driven mechanism for achieving an objective assessment of employee performance to enable course correction feedback and action thereof. In the FY 2022-23, the Performance Management System (PMS) in our Bank was based on Budgetary Appraisal with more than 70% marks allotted for Business dimensions which are autopopulated and Non-Budgetary Appraisal carrying 50% weightage for measurable KRAs. In the Budgetary Appraisal, target / budget figures are being captured from the FINACLE and compared with budgetary targets vis-a-vis the actual performance since FY 2019-20, Bank's current endeavour is to increase the degree of measurability of the Non-budgetary parameters of Appraisal as well.

    • In the area of Succession Planning, endeavour is being made to bridge systematically the gaps of skill shortage in the critical areas (Corporate Credit, Credit Monitoring, Recovery, Treasury, Risk Management, International Division, Information Technology, ITES and HRD) and also in the emerging new areas such as Infrastructure Financing and Financial Inclusion, through mapping of competencies vis-a-vis the critical roles identified.

    • In Talent Management sphere, a focussed Talent Review & Development Process is being undertaken to ensure that the current incumbents and potential employees in these roles will be suitably trained and groomed to assume these roles in time.

    • We have an integrated on-boarding process to enable greater integration of new recruits in the Bank. The training system is being redesigned to make it operation- oriented, creating a talent pool in critical areas of banking, to bridge competency gaps, role related training for executives and making training more meaningful in terms of prescribing credits for each of the training attended.

    • Towards paperless HR and to provide hassle free services to the staff members, the following digitisation initiatives have been implemented:

    0 Online acceptance of Gratuity nominations,

    0 Application for PF/Gratuity/REMAS on VRS/ Resignation

    0 Streamlining the Life certificate updation

    0 Online Pension application and processing the same

    0 Sending Form-16 through the system/email

    0 Streamlining of DCPS updations

    0 Investment Dashboard for the Management 0 Complaint handling

    0 Implementation of DMS

    0 Minimising the paper movements

    0 Employee Grievance (including complaints under Prevention of Sexual Harassment Act) Redressal System

    0 Whistle Blower Policy

    0 HR Audit (Star Pratibimbh)

    0 Reimbursement of Mobile Handsets through

    HRMS

    0 POSH Complaints on BOI-She Box

    0 Online GMIS for Retiree Staff

    • During FY 2022-23, 11 cases under POSH Act (Prevention of Sexual Harassment of Women at Work Place) were reported, which were actively resolved by the respective Internal Committees (ICs) of the Zones/ Head Office. The Bank has also formulated Board Approved Policy on POSH (Bank of India Prevention of Sexual Harassment of Women at Work Place Policy) to proactively work towards betterment of Women employees. Regular Workshops/ Awareness sessions are being conducted for all employees of the Bank in a phased manner.

    • Job Family concept has been implemented to create job specialization and to facilitate exposure in different areas of banking operations and develop competencies.

    • Since the last two years, Officers who are interested and are having flair of working in specialized areas like Credit, Risk Management, Treasury etc., are being identified through ‘Star Hunt' scheme. Under the Star Hunt, interested Officers have to apply for the above verticals and their selection is based on written examination and interview. After selection, such officers are trained in the vertical they are selected for and are posted in identified fields.

    • Development Centre is being carried out for Officers in Scale IV, V and VI to assess the identified competencies. Total approx. 1900 Officers are being identified for assessment and assessment of competencies has been completed for about 1600 officers. The level of individual competencies identified are entered in the Personal Data of the employees and may be used as one of the inputs for succession planning. Upon assessment of competencies, development through training shall be undertaken to improve identified competencies of the individual officers. Leadership Development programmes have been undertaken for Officers belonging to Scale V and above at ASCAI (Administrative Staff College of India), Hyderabad and IMI (International Management Institute), New Delhi.

    • For the officers working in specialized areas like Credit, Foreign Exchange, Risk Management, Compliance etc., customized training programmes have been formulated in collaboration with external training institutes like CRISIL, IIBF, CAB Manipal Institute etc.

    • To promote self-learning many courses from identified institutes as well as under MOOCS were included in the Bank's Capacity Building and Reimbursement of

    fee schemes where the fee for the completion of the course will be reimbursed to the officers along with some cash incentive.

    • Bank aims to ensure seamless implementation of various HR initiatives launched by the Bank like Employee Engagement Survey, Job Family, Succession Planning & Talent Management Process and any other Government directive envisaged in PSB Reforms Agenda for Enhanced Access & Service Excellence (EASE). Presently our Bank stands at 7th Position in the EASE ranking for Q3 from 10th position in Q2.

    • Bank has implemented ‘Bank of India Code of Ethics & Conflict of Interest Policy' towards ensuring an organization based on ethics and moral values and a work environment free of any kind of bias/ discrimination, including zero tolerance to any kind of sexual harassment across the organization.

    • Our Bank has concluded employee engagement survey on the theme "Employee Development and Wellness' and shall shortly implement the focus areas brought out in the same. Necessary upgradation of existing skills through extensive training & development initiatives shall continue in order to have manpower with necessary competencies and skill sets at all levels.

    • Talent induction model of the Bank to attract talent as well as to ensure sustained growth in qualitative head count in line with business growth and consistent replacement / replenishment of talent.

    • E- learning has aided in educating and updating amidst the covid pandemic situation. It is being accordingly developed and updated through appropriate modules. Weightage is given in Performance Appraisal on completion of identified E-learning modules. We aim to promote and monitor progress of E-learning systems and link the same to Performance Appraisal and Promotion process.

    • We are committed to strict compliance and implementation of Equal Opportunity Policy in our bank towards eliminating all forms of discrimination and ensure that the persons with disabilities enjoy equality, dignity and are empowered and better equipped to perform at par with others.

    • Star Pratibimbh (HR Evaluation) was introduced in Jan.2023 for evaluation of HR Department's performance PAN India. Star Pratibimb is a positive step for introspection and self-correction for creating better work ambience and modifications in the HR landscape

    • As a part of the green initiative under ESG Policy of the Bank, Bank has decided to present dignitaries/ executives with oxygen plants in place of flower bouquets.

    Compliance with Reservation Policy for representation

    of SC/ST/OBC/EWS/PwD/Ex-SM:

    The Bank is strictly complying with the reservation policy of

    Government of India. Separate cell for SC/ST and OBC has

    been set up at Head Office as well as in all Zonal Offices which takes exclusive care in implementing the reservation policy and redressal of grievances related to SC/ST/OBC Employees.

    Separate Executives in the rank of General Manager are appointed as Chief Liaison officers for SC/PwD/ExSM, ST and OBC respectively. Similarly Officers from SC/ST/OBC categories are designated as Cell/Liaison officers at Zonal office.

    EWS reservation in Direct Recruitment was implemented in the Bank since 01st February 2019.

    Quarterly meetings

    Bank conducts Quarterly meetings regularly with the representatives of All India Bank of India SC/ST/OBC Employees' Welfare Association at Head office. Also such meetings are conducted quarterly at all our zonal offices.

    Trainings

    Bank has conducted pre-promotion training programmes for SC/ST/OBC employees. Bank also nominates SC/ST/OBC employees for outside trainings.

    Rosters

    Post based Roster registers are prepared on yearly basis for maintenance of the appointments made through Direct Recruitment for all groups of posts i.e. Group A to Group D. In case of promotion, separate roster Registers are maintained up to SCALE-III. Roster registers are prepared as per the format prescribed by Department of Financial Services. Representation of SC/ST/OBC/EWS staff as on 31.03.2023:

    Cadre

    SC

    % to total staff

    ST

    % to total staff

    OBC

    % to total staff

    EWS

    % to total staff

    Total

    OFFICER

    4764

    17.97%

    2440

    9.20%

    7782

    29.35%

    254

    0.96%

    26510

    CLERK

    2950

    14.93%

    2308

    11.68%

    5419

    27.42%

    546

    2.76%

    19764

    SUBSTAFF

    2007

    33.82%

    701

    11.81%

    1638

    27.60%

    -

    -

    5935

    TOTAL

    9721

    18.62%

    5449

    10.44%

    14839

    28.42%

    800

    1.53%

    52209

    Learning and Development:

    All training related activities including capacity building, in house talent development and imparting of class room trainings are being taken care of by the Learning and Development Department. Bank has adopted Hybrid mode of training to train its employees. Bank's 7 training colleges have imparted training to 38,600 employees during the financial year using Hybrid mode. Bank has been using E-Learning modules for enhancing the competencies of employees and to equip the staff with right skills and knowledge for meeting ever changing business dynamics across different segments. 18,000 officers have done various e learning modules. To enhance the capabilities of employees, bank has made several collaborations with Training Institutes viz. Manipal Global, IMI New Delhi, ASCI Hyderabad, CAB Pune, IIBF, NIBM Pune etc. As per CVC guidelines, uniform Induction Training Programme of Newly Recruited Officers and also programme on preventive vigilance for newly joined officers and mid-career officers have been adopted by the Bank. Induction training for all the 625 newly recruited officers has been undertaken and completed by training colleges.

    Development Centre has been conducted for 1900 officers of scale IV and above and individual Development Plans have been prepared. Weekly webinars are conducted on various banking topics by training colleges in the evening hours of every Friday. All training colleges are collectively bringing out monthly magazine, Darpan. Other publications like Sandipani and Vijeta by training colleges are instrumental in the skill upgradation of employees

    22. CUSTOMER EXCELLENCE BRANCH BANKING:

    The Bank has empowered the Customer Service Committee of the Board, which is an apex level Board Committee, empowered to evaluate the Customer Service in our Bank.

    The Bank has a Standing Committee on Customer Service, which acts as the bridge between the various department of the Bank and the Customer Service Committee of the Board.

    The Bank has adopted CRM Next module as per the regulatory requirement for integration of multiple channels of complaints registration on a single common digital platform, for effective monitoring and timely review.

    Bank's various Policies such as Customer Rights Policy and Customer Grievance Redressal Policy are in place as per the regulatory requirements and same are reviewed from time to time to incorporate the changes as per the directions/ guidelines of the regulatory authorities. All these policies are placed on public domain. We have appointed Internal Ombudsman as per the RBI guidelines to review the wholly/ partly rejected complaints and give decision.

    The Bank has a full-fledged Call Centre located at two centre viz. Airoli (Navi Mumbai) and Begumpet (Hyderabad) providing 24X7 assistance to the customer/ non-customers.

    Bank is committed to provide Customer Service of a high order in a transparent manner. Bank undertakes customer meetings on a regular basis to get the feedback of customers so as to enable the Bank to take appropriate decision on different banking products offered by the Bank.

    23. BRANCH NETWORK & EXPANSION:

    Bank has a geographically well spread branch network in India and aboard. Bank had 5129 branches in India as on 31.03.2023. In the foreign countries 21 branches, 4 Subsidiaries, 1 Joint Venture and 1 representative offices keep Bank's presence felt in all times Zones and important financial centers of the globe. During the year 2022-23, Bank has opened 29 new branch. Composition of Bank's Branch Network is as under:

    Category

    31.03.2022

    31.03.2023

    No of Branches

    % to total

    No of Branches

    % to total

    Metropolitan

    991

    19.41

    991

    19.32

    Urban

    815

    15.97

    829

    16.16

    Semi-Urban

    1462

    28.64

    1456

    28.39

    Rural

    1837

    35.98

    1853

    36.13

    Total Domestic Branches

    5105

    100

    5129

    100

    Overseas

    22

    -

    21

    -

    Total Branches

    5127

    -

    5150

    -

    24. DOMESTIC SUBSIDIARY MANAGEMENT DIVISION:BANK’S DOMESTIC SUBSIDIARY/ASSOCIATES/JOINT VENTURES:BOI SHAREHOLDING LIMITED (BOISL):

    Bank has investment of Rs.6.65 crore in BOISL, a wholly owned subsidiary of the Bank. BOISL acts as Depository Participant (DP) of both the Depositories, National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL).

    BANK OF INDIA INVESTMENT MANAGERS PVT. LTD. (BOIIMPL) & BANK OF INDIA TRUSTEE SERVICES PVT. LTD. (BOITSPL):

    (Erstwhile BOI Star Investment Managers Pvt. Ltd. & BOI Star Trustee Services Pvt. Ltd).

    These wholly owned subsidiaries are in the business of Mutual Fund and Investment Advisory Services under SEBI Investment Advisor Regulations. Bank of India is holding 100% Stake in BOIIMPL and BOITSPL with combined investments of Rs.78.90 crore.

    BOI MERCHANT BANKERS LIMITED (BOIMBL):

    BOI Merchant Bankers Limited was promoted on 31.10.2014 to undertake merchant banking business including arranging of Syndicated Loans, Bonds and Debentures. It is a wholly owned subsidiary of the Bank with paid up capital of Rs.10 crore.

    STCI FINANCE LIMITED:

    Established in 1994, STCI Finance Ltd., acts as a non-deposit taking NBFC. Bank of India with 29.96% holding (Investment of Rs. 130.10 Cr.) is the largest stakeholder in STCI with Equity Share capital of Rs 380 Crore. STCI Primary Dealer Ltd. (STCIPD) is a wholly owned subsidiary of STCI Finance Limited. STCIPD commenced its operations from 25.06.2007 and is one of the leading primary dealers in the country.

    STAR UNION DAI-ICHI LIFE INSURANCE COMPANY LTD. (SUDLIFE):

    Bank of India, Union Bank of India and Dai-Ichi Life International Holdings, Japan have formed a Joint Venture “Star Union Dai-Ichi Life Insurance Company” to provide life insurance services to its clients. The company commenced insurance business in February 2009. BOI holds 28.96% (Investment of Rs.132.92 crore), UBI holds 25.10%, and Dai-Ichi Life International Holdings holds 45.94% stake of the Company.

    ASREC (INDIA) LTD. was floated by the Specified Undertaking of the Unit Trust of India (SUUTI) to undertake securitization and asset reconstruction activities. Bank holds 26.02% stake (Investment of Rs.27.60 Cr.), in the equity capital of the company of Rs. 98 crore.

    INVESTMENT / ALLIANCES:NATIONAL ASSET RECONSTRUCTION COMPANY LIMITED (NARCL):

    IBA has set up of Bad Bank to resolve the NPA issue in Banking Sector. Bank has invested Rs 126.81 Crore in the company with 9% holding.

    INDIA DEBT RESOLUTION COMPANY LIMITED (IDRCL):

    IBA has also set up of IDRCL to provide debt management service to NARCL comprising of sectorial experts and

    turnaround specialists. Bank has invested Rs 0.80 Crore in the company with 4% holding.

    OPEN NETWORK FOR DIGITAL COMMERCE (ONDC):

    ONDC was incorporated as a Section 8 company in December 2021, with first-of-its-kind initiative globally to pave the way for reimagining digital commerce in India and establishing a globally replicable model for digital commerce. Bank has invested Rs 10.00 Crore in the company with 5.56% holding.

    NATIONAL COMMODITIES MANAGEMENT SERVICES LIMITED (NCML) is promoted by the National Commodity and Derivatives Exchange Ltd. (NCDEX). It was incorporated on 28.09.2004 to promote and provide collateral management services for securing, managing and controlling securities and commodities. Bank holds stake of 2.34% in the equity capital of the company with investment of Rs.3 crore.

    SWIFT INDIA DOMESTIC SERVICES PRIVATE LIMITED is

    a joint venture company promoted by SWIFT and 9 major Banks including Bank of India. SWIFT is holding 55 % equity and remaining 45% is held by 9 major Banks. Bank of India has an equity stake of 3.26% in the company with Rs.7.71 crore Investment.

    ACUITE RATINGS & RESEARCH LIMITED was set up

    during FY 2005-06 by SIDBI in association with Dun & Bradstreet, one of the leading providers of commercial data and analytics. The Company's objective is to provide comprehensive, transparent and reliable ratings which would facilitate greater and easy flow of credit to SME sector. Bank holds a stake of 1.88% in the equity capital with investment of Rs.0.28 crore.

    OTHER STRATEGIC INVESTMENTS:

    Bank also has strategic investments in SIDBI (Rs.45.30 crore), Metropolitan Stock Exchange of India Ltd. (Rs.27.50 crore), NPCI (Rs.10 crore), Invent Assets Securitization and Reconstruction Pvt. Ltd. (Rs.10 crore), SBIDFHI (Rs.5.54 crore), CERSAI (Rs.2.16 crore), Agricultural Finance Corporation Ltd. (Rs.1.26 crore), Central Ware Housing Corporation Ltd. (Rs.1.11 crore), PSB Alliance Pvt. Ltd. (Rs. 2.14 crore), CSC e-Governance Services India Ltd. (Rs.1.00 crore), Clearing Corporation of India (Rs.0.50 crore), U.V. Asset Reconstruction Co. Ltd. (Rs.0.15 crore).

    25. FRAUD RISK MANAGEMENT

    Good corporate governance serves as an important factor in control of fraudulent activities. It may be true that Fraud itself cannot be eliminated but fraud risks can be managed and mitigated like other business risks with a proactive framework such as -

    • Devising and managing Fraud Risk Management Framework with board approved Policy supported by Operational Manual & SOPs,

    • Reporting Frauds to Regulators and Board,

    • Diagnosis and root cause analysis of fraud cases and implementation of remedial measures and steps to mitigate risks thereof in respect of product deficiencies with support from stake-holders departments at HO,

    • Dissemination of modus operandi & reasons for occurrence of fraud by way of Circulars / instructions to avoid the risk of recurrence of frauds of similar nature, at branches,

    • Sensitizing staff through short alert messages through tickers / periodical messages through MMS and training / Video Conferencing on Fraud prevention in coordination with Learning & Development Dept,

    • Enterprise wide Fraud Risk Management Solution (EFRMS) encompassing all non-credit delivery channels except cards has been implemented covering domestic branches and specific overseas centre.

    • Working on ‘Indian Cyber Crime Coordination Centre (I4C) portal managed by LEAs to provide required data in coordination with Digital Banking Department and Freezing of the accounts for blocking further damage to customers,

    • Filing of Complaints with Law Enforcement Agencies (LEAs) by branches/ controlling offices.

    • Issuance of LOCs as per extent guidelines of IBA (Indian Banks' Association) basing on direction from MHA (Ministry of Home Affairs).

    Highlight during the year:

    • Perpetration of frauds reported during the FY 202223 is Rs.582.59 Cr which shows significant reduction on comparing with frauds reported in FY 2021-22 amounting to Rs.5793.22 Cr.

    • Internal frauds due to staff involvement was amounting to Rs.2.81 Cr in FY 2022-23 which is only 0.48% of total frauds reported Rs.582.59 Cr and also shows considerable reduction by 21.72% from the frauds reported last year. This reflects improvement in internal control.

    26. VIGILANCE MANAGEMENT:

    Vigilance department is headed by Chief Vigilance Officer for vigilance administration in the Bank under the general superintendence of Central Vigilance Commission (CVC). The vigilance department covers all vigilance related matters of bank's officials in domestic operation, overseas operations, and subsidiaries.

    The vigilance administration of three Regional Rural banks sponsored by Bank of India, viz. Vidharbha-Konkan Gramin Bank, Aryavart Bank and Madhya Pradesh Gramin Bank are also supervised by Vigilance Department.

    The Vigilance Department works under Chief vigilance Officer assisted by one Deputy General Manager and other officials having background/experience in the field of investigation and disciplinary matters. For operational convenience, Vigilance Department has operationalized 13 Vigilance Units under the direct control of Vigilance Department, Head Office, which covers all the National Banking Groups. Concurrent Auditors, working at overseas centres, perform the role of Vigilance Officer for overseas branches.

    The Vigilance department deals with all 3 functions of vigilance administration such as, Preventive, Detective and Punitive vigilance with the objective of enhancing the level of managerial efficiency and effectiveness in the organisation. Communications covering gist of circulars, guidelines, and instructions etc., issued by the DFS, DoPT, CVC are circulated to field functionaries/offices from time to time along with other related subjects of preventive vigilance”.

    27. DIVIDEND DISTRIBUTION POLICY

    In terms of Regulation 43A of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Bank has formed a Dividend Distribution Policy and the same is available on our website - https://bankofindia.co.in/ documents/20121/0/DDP.pdf/ba6223a7-2777-012c-3ca7-f27b7f718d9a?t=1663666944772

    28. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORTING-2022-23

    In terms of Regulation 34 (2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility and Sustainability Report is available on our website - www. bankofindia.co.in.

    29. BASEL-III (PILLAR 3) DISCLOSURE (CONSOLIDATED) MARCH 2023

    In terms of RBI Circular RBI/2022-23/12 DOR.CAP. REC.3/21.06.201/2022-23 dated April 1, 2022 on Basel III Capital Regulations read together with RBI Circular DBR. No.BP. BC.80/21.06.201/2014-15 dated March 31, 2015 on Prudential Guidelines on Capital adequacy and Liquidity Standard - Amendments, requires Banks to make applicable Pillar 3 disclosures including Leverage Ratio and Liquidity Coverage Ratio under the Basel III framework. These disclosures are available on Bank's website at the link -https://bankofindia.co.in/regulatory-disclosure-section.

    30. STRATEGY FOR IND-AS IMPLEMENTATION AND ITS PROGRESS:

    RBI vide its circular DBR.BP.BC.No.29/21.07.001/2018-19 dated March 22, 2019 deferred implementation of Ind AS till further notice as the legislative amendments in Banking Regulation Act, 1949 as recommended by RBI are under consideration of the Government of India. However, RBI requires all banks to submit Proforma Ind AS financial statements every half year. Accordingly, the Bank has been preparing and submitting to RBI Proforma Ind AS Financial Statements (PFS) half yearly with effect from September-2021, after approval of Steering Committee formed for monitoring of implementation of Ind AS in the Bank. The PFS are also presented to Audit Committee of Board and Board for information and reporting.

    ACKNOWLEDGEMENT:

    The Board expresses its gratitude to the Government of India, Reserve Bank of India and Securities and Exchange Board of India and other regulatory authorities for their valuable guidance and support. The Board also thanks the financial Institutions and correspondent banks for their co-operation and support. The Board acknowledges the unstinted support of its customers, business associates and shareholders. The Board also wishes to place on record its appreciation of staff members for their dedicated service and contribution for the overall performance of the Bank.

    For and on behalf of the Board of Directors

    Sd/-

    Place : Mumbai Rajneesh Karnatak

    Date : 06.05.2023 MD & CEO

    1

    Bank has launched E-Platform for digitized processing of MSME loans upto Rs.10 lakhs.

  • Bank of India

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    Market Cap.(`) 60368.38 Cr. P/BV 1.12 Book Value (`) 118.45
    52 Week High/Low ( ` ) 156/68 FV/ML 10/1 P/E(X) 15.73
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