The Board of Directors have pleasure in presenting the Bank's Annual Report along with the audited statement of accounts and the cash flow statement for the year ended 31st March 2022.
PERFORMANCE:Domestic Business:
> Overall Domestic Business of the Bank increased by 3.43% and reached at Rs.944,824 crore as on 31.03.2022 from Rs. 913,496 crore as on 31.03.2021.
> CASA deposits increased by 9.26% on YOY and stood at Rs. 245,464 crore. Share of low cost deposits (CASA), in domestic deposits stood at 45.02% as on 31.03.2022. Saving Bank deposit has registered a growth of 9.74% and reached at Rs. 215,638 crore as on 31.03.2022. Where as Current deposit registered a growth of 5.89% and reached at Rs. 29,826 crore as on 31.03.2022.
> Due to deliberate strategy of shedding of Bulk Deposits, there was negative growth in total deposits. Total deposits stood at Rs. 550,833 crore as on 31.03.2022 from Rs. 551,135 crore as on 31.03.2021.
> Gross Domestic Advances registered growth of 8.73% YoY, reached at Rs. 393,991 crore as on 31.03.2022 from Rs. 362,361 crore as on 31.03.2021.
> Share of RAM Advances to Total advances is 54.97% (i.e. Rs. 216,567 crore) as on 31.03.2022 as compared to 51.60% (i.e. Rs. 187181 crore) as on 31.03.2021.
> Priority Sector lending constituted 41.55% of Adjusted Net Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 18.00%.
> Retail Credit grew by 18.54% from Rs 68,058 crore as on
31.03.2021 to Rs 80,674 crore as on 31.03.2022. The share of Retail Credit to Total Domestic Credit was 20.48% as on
31.03.2022.
> MSME Credit grew by 9.52% from Rs 63,425 crore as on
31.03.2021 to Rs 69,462 crore as on 31.03.2022. The share of MSME Credit to Total Domestic Credit was 17.63% as on
31.03.2022.
Overseas Business:
> Overseas business has increased by 12.92% and stood at Rs. 140,086 crore as on 31.03.2022 as compared to Rs. 124,053 crore as on 31.03.2021.
> Total Foreign Deposit registered a growth of 1.43%, reached at Rs.77, 063 crore as on 31.03.2022 from Rs. 75,978 crore as on 31.03.2021.
> The Overseas CD Ratio stood at 81.78% as on 31.03.2022. Global Business:
> Gross Business of the Bank registered a growth of 4.56%, reached at Rs. 1,084,910 crore as on 31.03.2022 from Rs.1,037,549 crore as on 31.03.2021.
S REPORT
> Total deposits increased to Rs.627,896 crore as on
31.03.2022 from Rs. 627,114 crore as on 31.03.2021.
> Gross Advances registered a growth of 11.35% , reached at Rs. 457,014 crore as on 31.03.2022.
> The Global CD Ratio stood at 72.78% as on 31.03.2022.
Financial Parameters:
> Operating Profit stood at Rs.9,988 crore as on 31.03.2022 as against Rs. 10,273 crore as on 31.03.2021.
> Non-Interest Income increased to Rs.7,879 crore in FY'22 from Rs.6,842 crore as on 31.03.2021.
> The Bank registered Net profit of Rs.3,405 crore in FY'22 as against Net Profit of Rs. 2,160 crore for FY 21.
> Capital Adequacy Ratio stood at 17.04% as on 31.03.2022 as against 14.93% as on 31.03.2021.
> Net Worth increased by 33.76% to 36,933 crore from Rs. 27,611 crore as on 31.03.2021.
> Book value per share is Rs. 90.00.
> Gross NPA amount reduced by 23.97% (i.e. Rs. 10,930 crore) reached at Rs 45,605 crore as on 31.03.2022 from 56,535 crore as on 31.03.2021.
> Gross NPA percentage reduced to 9.98% as on 31.03.2022 from 13.77% as on 31.03.2021.
> Net NPA amount reduced by 24.46% (i.e. Rs. 2,410 crore) reached at Rs.9,852 crore as on 31.03.2022 from Rs. 12,262 crore as on 31.03.2021.
> Net NPA percentage reduced to 2.34% as on 31.03.2022 from 3.35% as on 31.03.2021.
> The Financial performance of the Bank for the year 2021-22 is summarized below:
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(Amount in crore)
|
|
Particulars
|
2020-21
|
2021-22
|
Growth (%)
|
|
Net Interest Income
|
14270
|
14062
|
-1.46
|
|
Non-Interest Income
|
6842
|
7879
|
15.16
|
|
Operating Expenses
|
10839
|
11952
|
10.27
|
|
Operating Profit
|
10273
|
9988
|
-2.77
|
|
Provisions / Contingencies
|
8112
|
6584
|
-18.84
|
|
Net Profit/ Loss
|
2160
|
3405
|
57.63
|
|
Earnings per share (Rs.)
|
6.59
|
8.84
|
34.14
|
|
Book Value per share (Rs.)
|
84.24
|
90.00
|
6.84
|
|
Return on Equity (%)
|
8.81
|
10.55
|
|
|
Return on Average Assets (%)
|
0.28
|
0.43
|
|
Key financial Ratios are presented below
(Percentage) (%)
|
|
Particulars
|
2020-21
|
2021-22
|
|
Yield on Advances
|
7.48
|
6.76
|
|
Yield on Investments
|
6.58
|
6.32
|
|
Yield on Funds
|
5.87
|
5.21
|
|
Cost of Deposits
|
4.10
|
3.69
|
|
Cost of Funds
|
3.81
|
3.29
|
|
Net Interest Margin
|
2.48
|
2.36
|
|
Non-Interest Income to Operating Expenses
|
63.12
|
65.92
|
|
Other Income to Average Working Fund
|
0.90
|
1.00
|
|
Operating Expenses to Average Working Fund
|
1.57
|
1.64
|
|
Staff Expenses to Average Working Fund
|
0.94
|
0.97
|
|
Other Operating Expenses to Average Working Fund
|
0.63
|
0.67
|
|
Asset Utilisation Ratio
|
1.49
|
1.37
|
|
Non-Interest Income to Total Income
|
14.42
|
17.14
|
|
Non-Interest Income to Net Income
|
32.41
|
35.91
|
|
Cost to Income Ratio
|
51.34
|
54.48
|
|
CAPITAL
During the financial year, Bank has raised equity capital as under:
|
|
Particulars
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Amount (Rs. in crore)
|
Date of allotment
|
|
Preferential Issue to Government of India @ Rs.71.23 per share (including share premium). GOI had deposited this amount on 31.03.2021 and the same was kept as Share Application Money pending allotment.
|
3,000
|
11.06.2021
|
|
Qualified Institutions Placement @ Rs.62.89 per share (including share premium)
|
2,550
|
31.08.2021
|
|
Bank has raised Rs.1,800 Crore by issue of Basel III compliant Tier II bonds on 30.09.2021.
During the financial year, Bank has redeemed the following bonds by exercising call option.
|
|
Particulars
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Amount (Rs. in crore)
|
Date of redemption
|
|
8.57 % Tier II Bonds Series XIII
|
- 1,500
|
07.07.2021
|
|
8.00% Tier II Bonds Series
|
1,000
|
25.03.2022
|
|
XIV
|
|
|
CAPITAL ADEQUACY:
> As per Basel III framework, the Bank's Capital Adequacy Ratio was 17.04% which is higher than the regulatory requirement of 11.5 %.
> Details of Capital Adequacy (BASEL III) are :
|
(Rs. in crore)
|
|
Particulars
|
BASEL-III
|
| |
31.03.2021
|
31.03.2022
|
|
CET1 CRAR
|
34,690
|
11.51%
|
44,347
|
14.02%
|
|
AT1 CRAR
|
1,352
|
0.44%
|
1,352
|
0.44%
|
|
Tier I Capital
|
36,042
|
11.96%
|
45,699
|
14.44%
|
|
Tier II Capital
|
8,949
|
2.97%
|
8,206
|
2.59%
|
|
Total Capital
|
44,990
|
14.93%
|
53,905
|
17.04%
|
|
Risk Weighted Assets
|
301,305
|
|
316,395
|
|
BUSINESS INITIATIVE:
> “Area Managers” office structure rationalized for better connect for business development and better decision making.
> Strategy for more focus on “CASA” and “RAM advances” (Retail, Agriculture and MSME) and rationalizing exposure to corporate sector.
> Web-based - Retail Online Module launched to improve productivity and customer service by reducing turnaround time.
> “Swarna Dhara" - Gold Loans have been intensified with attractive features.
> Special Schemes like Star Kisan Ghar, Star Bio Energy Scheme, Star Kisan Sahayata Loan has been launched in Agriculture segment.
> “End to end digitization” of Retail, Agri and MSME loan process is in advance stage.
> “Contactless Platform (psbloansin59minutes.com)” - for
quick sanction and disbursement.
> Co-lending tie-up with MAS Financial Services has been initiated successfully.
> GECL Extension Scheme launched by GOI for MSME segment.
> Recovery mechanism through a host of OTS schemes like “Intensive Recovery Day”, “Branch Adalat” monthly mega E-auction and involving in-house staff such as “Sanjeevani”, “Saksham-2” put in place.
> SME City Centre increased from 58 to 91 and centralized processing of all proposals of Rs.10 Lakhs and above is being done smoothly.
> TReDS (Trade Receivables Discounting system) platform have been used more extensively to garner business growth.
> “Launched Small Town Big Support” campaign for Loan Guarantee Scheme for Covid Affected Sectors.
> “Shining Star Campaign” launched for generation of leads (convertible) & sanction of loans under Star Welcome Offer.
> E-PLATFORM solution is being implemented for Straight Through Origination and process of all Banking products.
> Non-discriminatory and Non-discretionary OTS Schemes, namely "Star Sanjeevani" and "BOI OTS 2021" were made more customer friendly with greater reach for quick resolution of NPAs.
> Star Mahashakti- Upgradation/ migration of IT platform from FINACLE 7 to FINACLE 10 has been successfully done.
> “Tech-driven Credit Monitoring System” for tracking of “Early Warning Signals” effectively used for SMA and SASCL management.
> “SMA automation process” for managing SMA portfolio of the Bank through automated system is under process.
> Star CPSU & Star GECL Scheme launched for catering to the requirements of CPSUs.
> Special schemes for extending financial assistance for augmentation of the Ethanol Production Capacity.
> “Enterprise wide fraud Risk Management” framework for real-time fraud monitoring is being effectively used for fraud monitoring and management
> Document Management System (DMS) has been made live and is being used effectively for retrieval of documents and storing, tracking, managing and accessing our data in a more flexible and hassle freeway.
> “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.
> Digi Locker has been launched. It is an online service provided by Ministry of Electronics and IT (MeitY), Government of India, under its Digital India initiative.
> Security Solutions- Bank has procured and implemented security solutions for strengthening ecosystem of the bank as per guidelines on “Cyber Security framework in Banks".
> Cheque Deposit Kiosks- Bank has deployed Cheque Deposit Kiosks for providing facility to the customers to deposit cheques in the self-operated Kiosks without intervention of bank staff.
> Bank has completed successfully all test scenarios for new tax collection system TIN 2.0 which is soon going to be launched by CBDT, Dept. of Revenue, MoF.
> Bank has launched New Merchant app with various digital facilities.
> Bank has announced FY 22-23 to be the year of digitalization.
> Star Hunt scheme- Interested Officers have an opportunity to work in their chosen vertical 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 and use them for benefit of the bank.
> Additional National Banking Group and Zonal Offices
created to give good service to customers and more business growth
AWARDS:
> Bank of India received ‘HR Leadership Award 2021 ’ by World HRD Congress
> SKOCH AWARD 2021, SILVER in Excellence in Technology Category for “Document Management System”.
> Forbes recognized “Bank of India” as one of the World's Best Employer in 2021.
> Bank has won Leadership Capital 3.0 APY award of excellence “Best Performing Managing Director” by our Respected MD & CEO Shri Atanu Kumar Das.
> BFSI Excellence Awards 2021 for the Best Cyber Security Initiative in banking category.
> Bank has won Infosys Finacle Client Innovation Awards in the category “Product Innovation” for QRCash, 2020.
> Bank of India, has been awarded Best MSME Bank of the Year Award for FY20-21 by SME Chamber of India.
> Bank of India has been awarded with “Best MSME Bank-Runner Up", “Best Branding-Winner" and “Best Bank for promoting Social Schemes - Winner” in “MSME Banking Excellence Awards 2021” by Chamber of Indian MSME.
> Bank of India has received appreciation Letter for Lending under MUDRA Scheme in FY21-22 by Govt. of India.
> Bank of India has been awarded “Dr. Ambedkar Business Excellence Award” for lending to SC Entrepreneurs awarded by IFCI Venture Capital Ltd.
> Bank of India has been awarded Runners-Up award for “The Best Fintech Collaboration” in IBA's 17th Annual Banking Technology Conference and Awards: 2020-21.
> Bank has received AWARD OF EXCELLENCE in PFRDA APY Campaign LEADERSHIP CAPITAL 4.0 from PFRDA for good performance.
> Bank has won AWARD OF EXCELLENCE from PFRDA for good performance in PFRDA APY CAMPAIGN MAKERS OF EXCELLENCE 5.0.
VISION, STRATEGY and FUTURE OUTLOOK:
> Expand the Bank's Retail, Agriculture and MSME (RAM) lending profile by leveraging its existing customer base.
> Continue to contain funding cost by sourcing low cost deposits such as CASA.
> Focus on improving asset quality and containing NPA levels.
> Leverage technology to increase cross selling opportunities, reduce cost and enhance customer experience.
> Improving Risk Management Systems to ensure long-term sustainability of our business.
DIRECTORS’ RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31,2022:
a) The applicable accounting standards have been followed along with proper explanation relating to material departures, if any,
b) The accounting policies framed in accordance with the guidelines of the Reserve Bank of India were consistently applied. Reasonable and prudent judgements and estimates were made so as to give a true and fair view of the state of
affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for the year ended March 31, 2022.
c) Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities,
d) Annual accounts have been prepared on a going concern basis,
e) Internal financial controls system to be followed by the Bank were laid down and that such internal financial controls are adequate and were operating effectively,
f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
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