CENTRAL BANK OF INDIA
ANNUAL REPORT 2011-2012
Your Directors have pleasure in presenting the Bank`s Annual Report of the
Bank along with the Audited statement of Accounts, the Profit and Loss
accounts and the cash flow statement for the year ended March 31, 2012.
1. PERFORMANCE HIGHLIGHTS
* Total Business of the Bank increased by Rs. 36135 crore to Rs. 346898
crore from Rs. 310763 crore in previous year, registering y-o-y growth of
11.63 per cent.
* Total Deposits increased by Rs. 16817 crore to Rs. 196173 crore,
registering y-o-y growth of 9.38 per cent.
* Gross Advance of the Bank grew by Rs. 19318 crore to Rs. 150725 crore,
registering y-o-y growth of 14.70 per cent.
* Operating Profit increased to Rs. 2815 crore from Rs. 2591 crore in 2010-
11, registering y-o-y growth of 8.65 per cent
* Net Profit stood at Rs. 533 crore in 2011-12 as against Rs. 1252 crore in
* Capital Adequacy Ratio (as per Basel-II) improved to 12.40 per cent from
11.68 per cent in previous year.
* Net worth increased to Rs. 10550.44 crore from Rs. 6909.54 crore.
* Gross NPA of the Bank increased by Rs. 4879 crore to Rs. 7273 crore from
Rs. 2394 crore in previous year. In percentage term Gross NPA increased to
4.83 per cent in 2011-12 from 1.82 per cent in last year.
* Net NPA increased to Rs. 4557 crore from Rs. 847 crore in previous year.
Net NPA percentage increased to 3.09 per cent from 0.65 per cent in
* Net Interest Margin (NIM) reduced to 2.78 per cent from 3.31 per cent in
* Average Business per Employee increased to Rs. 862 lakh from Rs. 835 lakh
in previous year.
* Net Profit per Employee reduced to Rs. 1.51 lakh from Rs. 3.96 lakh in
* Credit to Priority Sector increased to Rs. 40749 crore from Rs. 37469
crore in previous year, recording y-o-y growth of 8.76 per cent.
* Agriculture Advance of the Bank increased to Rs. 18950 crore from
Rs.18545 crore in 2010-11.
* Under the micro credit (credit up to Rs. 50,000 per borrower), Bank has
extended credit of Rs. 216 crore.
* Advances to Micro & Small Enterprises (MSE) increased to Rs. 13518 crore
during the year under review from Rs. 10999 crore in previous year.
* During the year 13256 new Self Help Groups (SHGs) were formed, out of
which 6797 SHGs have been credit-linked.
* Under the Government Sponsored Programmes, Bank has provided assistance
to 13525 SGSY beneficiaries, 4137 SJSRY beneficiaries & 6244 PMEGP
borrowers during the year 2011-12.
* Bank has extended loan of Rs. 13214 crore to the borrowers belonging to
the weaker section of the society.
* Education Loan grew by 32.95 per cent during the year and the total loan
reached to Rs. 2058 crore.
* Bank has established 46 Rural Self Employment and Training Institute
(RSETI) across India.
* Bank has sponsored 7 Regional Rural Banks (RRBs) covering 57 districts of
7 states with 1806 branches.
* A target of 3725 villages (having population over 2000) have been
allotted under Financial Inclusion Plan. Bank has covered all the villages
by 21st December 2011, well before the targeted time of 31st March 2012.
* The corporate credit of the Bank increased to Rs. 106758 crore from
Rs.84995 crore in previous year registering y-o-y growth of 25.61%.
* The retail credit grew by 39.72% from Rs. 12522 crore in 2010-11 to
Rs.17496 crore in 2011-12.
* Cent Param - Salary Account Scheme introduced specially for the armed and
para military force with attractive features like free remittances, retail
loans at concessional rates, customized credit cards etc.
* During the year 2011-12, Bank has earned commission of Rs. 13.53 crore in
life insurance & Rs. 6.30 crore in non-life insurance business.
* Our 67 Regions have been declared as BIMA Region and 800 branches as BIMA
Banks by LIC.
* Bank has introduced Family Floater Rural Health Insurance Scheme with the
tie-up arrangement with general insurance partner Chola MS.
* A new recovery scheme "Krishak Rahat Yojana" introduced for the recovery
in NPA accounts of Tractor/ Agriculture Loans and Rs. 15.51 crore has been
recovered during the year.
* During the year, 7303 recovery camps were organized at different
locations across the country and recovered Rs. 745 crore.
* As on 31st March 2012, Bank has a network of 4011 branches across the
country. During the year 283 branches have been opened, which includes 121
extension counters and 5 satellite offices converted to full-fledged
* Bank has installed 1682 ATMs till 31st March 2012.
* Under the organizational re-structuring process, Bank has delegated more
powers to the Regional Managers to ensure decision making faster and Zonal
Managers will work as Business Facilitator for Regional Offices for
achieving Corporate Goals.
2. INCOME & EXPENDITURE
Details of income and expenditure for the period 2011-12 are given
Rs. in crore
31.03.2012 31.03.2011 Variation %
1. INTEREST INCOME 19150 15221 3929 25.81
- Advances 14421 11254 3167 28.14
- Investments 4347 3767 580 15.40
- Others 382 200 182 91.00
2. OTHER INCOME 1395 1265 130 10.28
(Profit on Sale of Investments)
3. TOTAL INCOME (1+2) 20545 16486 4059 24.62
4. INTEREST EXPENDED 13981 9895 4086 41.29
-Deposits 12996 9063 3933 43.40
-Others 985 832 153 18.39
5. OPERATING EXPENSES 3749 4000 -251 -6.28
-Establishment 2506 2964 -458 -15.45
-others 1243 1036 207 19.98
6. TOTAL EXPENSES (4+5) 17730 13895 3835 27.60
7. SPREAD (1-4) 5169 5326 -157 -2.95
8. OPERATING PROFIT (3-6) 2815 2591 224 8.65
OTHERS 2169 932 1237 132.73
10. PROVISIONS FOR TAX 113 407 -294 -72.24
11. NET PROFIT 533 1252 -719 -57.43
* Interest Income grew by 25.81 per cent during the year
* Interest expenses on Deposits increased by 43.40% to Rs. 12996 crore in
March 2012 from Rs. 9063 crore in previous year.
* Expenses on employees reduced by Rs. 458 crore during the year to Rs.2506
crore from Rs. 2964 crore in previous year, due to reduced provisioning
requirement for pension.
Details of Total Provisions of Rs. 2282 crore charged to the Profit and
Loss Account during the year 2011-12 vis-a-vis previous year are detailed
31.03.2012 31.03.2011 Variation
Provisions for Standard Assets 54 106 -52
Provisions for NPAs 1962 632 1330
Investments 151 154 -3
Provisions for Taxes 113 407 -294
Others 2 40 -38
TOTAL 2282 1339 943
4. SPREAD ANALYSIS
Cost of Deposits 7.20 5.71
Cost of Funds 7.28 5.82
Yield on Advances 11.36 10.29
Yield on Investments 7.53 7.45
Net Interest Margin 2.78 3.31
Cost Income Ratio 57.11 60.68
* Cost of Deposits increased from 5.71 per cent in 2011 to 7.20 per cent in
* The yield on advances was 11.36 per cent in 2011-12 and yield on
investments was 7.53 per cent against 7.45 per cent in 2010-11.
* Net Interest Margin reduced to 2.78 per cent from 3.31 per cent in
* Cost to Income Ratio decreased from 60.68 per cent in 2011 to 57.11 per
cent in the year under review.
5. BANKING RATIOS (In percentage)
Interest Income to Average
Working Fund (AWF) 9.22 8.49
Non-Interest Income to AWF 0.67 0.71
Operating Profit to AWF 1.36 1.45
Return on Average Assets 0.26 0.70
Business Per Employee
(Rs. in lakh) 862 835
Net Profit per Employee
(Rs. in lakh) 1.51 3.96
6. CAPITAL TO RISK WEIGHTED ASSETS RATIO (CRAR)
The components of Capital Adequacy Ratio were as under:
Basel-I Basel-II Basel-I Basel-II
Risk Weighted Assets
(Rs. in crore) 147958 140823 128587 116619
Tier-I 7.50 7.79 5.81 6.31
Tier-II 4.46 4.61 4.93 5.33
Capital Adequacy Ratio 11.96 12.40 10.74 11.64
7. NET PROFIT & DIVIDEND
The Bank earned Net Profit of Rs. 533 crore for the financial year 2011-12.
Despite lower profit, believing in the intrinsic strength of the Bank, the
Board of Directors are pleased to recommend dividend @ 20 per cent on the
Equity share Capital i.e. Rs. 2/- per Equity Share of Rs. 10/- each.
8. CHANGES IN THE BOARD DURING THE YEAR
During the year under review, the following changes took place in the Board
of Directors of the Bank:
* Shri Mohan V. Tanksale was appointed as Chairman & Managing Director of
the Bank in place of Shri S. Sridhar who retired as Chairman & Managing
Director on 31.05.2011. Shri Mohan V. Tanksale took over the charge of the
Bank w.e.f. 29.06.2011.
* Shri Alok Tandon was appointed as Govt. of India Nominee Director w.e.f.
15.11.2011 in place of Dr. Shashank Saksena who ceased to be a Director on
the Board of the Bank on 14.11.2011.
* The term of Shri Brijlal Kshatriya and Prof. N. Balakrishnan as
Shareholders` Director completed on 19.11.2011. Both the Directors were re-
elected as Shareholders` Director w.e.f. 10.01.2012.
* Shri Guman Singh was appointed as Part Time Non Official Independent
Director w.e.f. 08.08.2011.
9. DIRECTORS` RESPONSIBILTY STATEMENT
The Directors confirm that in the preparation of the annual accounts for
the year ended March 31, 2012;
* The applicable accounting standards have been followed along with proper
explanation relating to material departure, if any;
* The accounting policies framed in accordance with the guidelines of the
Reserve Bank of India were consistently applied;
* Reasonable and prudent judgement and estimates were made so as to give a
true and fair view of the state of affairs of the Bank at the end of the
financial year and of the profit of the Bank for the year ended March 31,
* Proper and sufficient care was taken for the maintenance of adequate
accounting records in accordance with the provisions of the applicable laws
governing banks in India; and
* The accounts have been prepared on a going concern basis.
10. CORPORATE GOVERNANCE
The Board of the Bank is committed to adapt Corporate Governance practices
in letter and spirit. The Bank has adopted well documented system and
practice on Corporate Governance.
The Board of Directors places on record its gratitude to the Government of
India, Reserve Bank of India and the Security and Exchange Board of India
for their valuable guidance and support. The Board acknowledges with
gratitude the unstinted support and faith of its customers and
shareholders. The Board wishes to place on record its appreciation of the
dedicated services and contribution made by members of staff for the
overall performance of the Bank.
For and on behalf of the Board of Directors
Place: Mumbai Mohan V Tanksale
Date : May 24, 2012 Chairman & Managing Director
MANAGEMENT DISCUSSION AND ANALYSIS
Part A - ECONOMIC SCENARIO
The after effects of the financial crisis of the 2008 have continued to
impact global economy. The recovery process which started since then is
beginning to freeze and the sovereign debt crisis in the euro zone area has
started threatening the very survival of the Euro Zone. The global economy
grew by 3.9% in 2011 against 5.3% in 2010 and expected to further fall to
3.5% in 2012 as per the International Monetary Fund`s (IMF) April 2012
update of the World Economic Outlook (WEO). Gross domestic product (GDP)
growth in advanced economies declined to 1.6% in 2011 compared to 3.2% in
2010 and again expected to fall to 1.4% in 2012. Similar trend is seen in
emerging economies as they slowed to 6.2% in 2011 compared to 7.5% in 2010
and likely to fall to 5.7% in 2012.
Indian Economy in 2011-12 was surrounded by concerns of high inflation,
bourgeoning fiscal deficit and pronoucing current account deficit. The
Economic growth moderated to 6.5% as per revised estimates of CSO against
8.4% seen in 2010-11. The growth has been disappointing on account of
current uncertain global conditions and one of the worst performances in
domestic industrial sector.
All the three sectors viz. agriculture, industry and services slowed down
in 2011-12. Agriculture and allied agriculture growth fell to 2.8% against
a high achievement of 7% in 2010-11, despite a record food grain production
of 250 million tons in 2011-12.The contribution of agriculture and allied
activities to GDP is only 14% but slow-down in agriculture growth has
severe impact on the employment in this sector, that has a share in
employment as high as 55%. The growth in services sector including
construction sector is estimated to grow at 8.5% in 2011-12 as against 9.2%
in 2010-11 reflecting the down-turn in construction growth.
The industrial growth slackened due to the disappointing performance of
mining and manufacturing. The index of industrial production for the 2011-
12 grew at 2.8% as against 8.2% in 2010-11.This is on account of slow
recovery in the US and Europe and due to tight monetary policy affecting
the overall investors` confidence. The month-wise growth in IIP exhibited
high volatility on account of fluctuation in growth of capital goods. The
growth in capital goods declined from 37% in June 2011 to negative 25% in
October 2011. The growth in Index of eight core industries viz. Coal, Crude
oil, Natural gas etc. contributing 38% to the IIP has also fell to 4.3%
during April-March 2011-12 compared to 6.6% during the corresponding period
of the previous year. There has also been decline in capacity utilization
in various infrastructure sectors, to name a few like cement and thermal
power during April-November 2011-12.
On external front, the merchandise exports in 2011-12 has increased by 21%
amounting to $304 billion, thereby surpassing the indicative target of $300
billion set for the year. The imports however too increased by 32%
amounting to $488 billion resulting in trade deficit of $184 billion. This
has widened current account deficit (CAD) to US$ 53.7 billion (4.0% of GDP)
from US$ 39.6 billion (3.3% of GDP) in April-December 2010.
The major concern during FY 2012 has been the inflation. For the whole year
headline WPI Inflation remained high at around 9%, although it showed some
moderation toward the end of the financial year. It started with 9.7% in
April 2011 reached its peak at 10% in September 2011 and then declined to
6.9% in March 2012. The major contributors to the high level of inflation
are crude oil, primary articles, metal and chemical prices.
The Rupee against dollar has fallen sharply during the year. In beginning
of the financial year the exchange rate was at Rs. 44.37 /$ fell to Rs.
52.68/$ in December11 rose moderately to Rs. 51.76 /$ in March12. This has
been primarily because of the large current account deficit and balance of
For the FY 2011-12, the main focus of Monetary Policy was to curb inflation
and anchoring inflationary expectation. It was reflected in strong anti-
inflation stance, RBI raised the repo rate 13 times since March 2010. The
overall liquidity position during the year has remained in a squeezed mode.
Average net injection of liquidity under the daily liquidity adjustment
facility (LAF) surged from a low Rs. 4000 crore at the beginning of
financial year to Rs. 50 thousand crore in September 2011 to around Rs. 1.4
Lakh crore during February 2012 and further to Rs. 1.6 Lakh crore during
March 2012. To ease liquidity deficit, the RBI conducted Open Market
Operations (OMOs) and cut CRR from 6% to 5.5% in Third Quarter Monetary
Policy Review to further 4.75% i.e. by 75 bps on March 10, 2012.
Money supply (M3) growth moderated to 13 % at end-March 2012, lower than
the Reserve Bank`s indicative trajectory of 15.5% resulting in slower
The Aggregate deposit growth for the financial year has been 17.4%, that is
marginally above the 17% indicative target set by the RBI. The main reasons
behind the slow deposits growth were high inflation and depositors moving
their funds to better avenues like gold and real estate. The credit growth
was 19.4%, that surpassed the indicative target of 16% (revised downward
from 18% set earlier in the year). However, the credit growth has slowed in
comparison to last year due to slowdown in economic growth and battered
sector of industries like textile, steel, mining, infrastructure etc.
The RBI has unveiled the guidelines on Basel III .These guidelines would
become effective from January 1, 2013 in a phased manner and will be fully
implemented by March 31, 2018. As per these guidelines, Banks have to
maintain a minimum overall capital adequacy of 11.5% (against the current
9%) by March 31, 2018.
Part B - PERFORMANCE OF THE BANK
As on 31st March 2012, the total business of the Bank was Rs. 346898 crore,
registering a growth of 11.63% from the previous year figure of Rs. 310763
crore. The operating profit reached to Rs. 2815 crore from previous year
figure of Rs. 2591 crore, marking a growth of 8.65%. The Bank has posted
net profit of Rs. 533 crore in 2011-12 as against Rs. 1252 crore in
The total deposits as on March 31, 2012 stood at Rs. 196173 crore,
registering a growth rate of 9.38% over previous year. Savings Bank
Deposits increased to Rs. 52595 crore in 2011-12 from Rs. 47645 crore in
last year. Current Deposits declined from Rs. 15431 crore in 2010-11 to
Rs.12680 crore in 2011-12. The share of CASA deposits to total deposits was
33.27 per cent. Term Deposits increased to Rs. 130898 crore with y-o-y
growth of 12.57 per cent from Rs. 116280 crore in 2010-11.
As of 31.03.2012, the gross credit of the Bank stood at Rs. 150725 crore as
against Rs. 131407 crore in the previous year, registering y-o-y growth of
14.70%. The growth in credit is diversified in all segments with higher
growth in retail lending and industries viz. Iron & Steel, All Engineering,
Other Textiles etc. Retail lending and Corporate Credit have registered
sizable growth as under:
Rs. in crore
As on As on Growth (%)
Corporate Credit 84995 106758 25.61
Retail Lending 12522 17496 39.72
Credit 37467 40749 8.76
CREDIT MONITORING DEPARTMENT
* Bank has introduced a well-defined Monitoring Policy, containing detailed
guidelines on SMA (Special Mention Accounts) Management which encompasses
all areas of SMA management, Early Warning Signals, Monitoring & Follow-up
Measures and Reporting System.
* The policy was approved by the Board in May 2011 and implemented across
the Bank with effect from 1st July 2011. The policy will be reviewed
* An independent vertical under an independent charge of Chief General
Manager has been created for Credit Monitoring w.e.f. 1st August 2011.
* As per Monitoring Policy guidelines, Monitoring Committee is formed at
Central Office level as well as at the field level to review and monitor
SMA accounts periodically.
* Meetings were also conducted at different locations at Regional Offices
and Zonal Offices to have one-to-one interaction with the SMA borrowers to
chalk out strategies for recovery/up-gradation of the accounts.
* The Bank is also implementing Centralized Loan Appraisal System &
Supervision (CLASS) software for monitoring Corporate, SME, Retail and
Priority Sector advances on real-time basis.
* The Bank has also submitted point-wise compliance to all the earlier
Annual Financial Inspection (AFI) Reports and the AFI Reports up to 2010
are closed and all the observations of AFI 2011 have been replied to.
PRIORITY SECTOR CREDIT
The credit deployed under priority sector increased form Rs. 37467 crore to
Rs40749.crore in 2011-12, recording a y-o-y growth of 8.76% Out of this,
the direct Agriculture advance has record a growth of 20.60% over 2010-11.
The performance recorded by the Bank under various segments of priority
sector as on 31.03.2012 is as under:
Rs. in crore
Particulars March 2011 March 2012 Growth (%)
Adjusted Net Bank
Credit (ANBC) 106146 131277
1. Priority Sector
Advance 37467 40749 8.76
Percent to ANBC 35.30 31.04
2. Total Agriculture
Advance 18545 18950 2.18
Percent to ANBC 17.47 14.43
3. Direct Agriculture
Advances 12561 15148 20.60
Percent to ANBC 11.83 11.54
4. Indirect Agricultural
Advances 5984 3802 -36.46*
Percent to ANBC 5.64 2.90
5. Micro & Small Enterprises 10999 13518 22.90
6. Education Loan 1548 2058 32.95
7. Housing Loan
(upto Rs. 25.00 lacs) 6106 6006 -1.64
8. Micro Cr. & other 269 216 -19.70
* Negative due to change in classification norms
Total Agriculture credit increased by 2.18% from a level of Rs. 18545 crore
as on 31.3.2011 to Rs. 18950 crore as on 31.03.2012. The share to adjusted
net bank credit (ANBC) stood at 14.43%.
AGRI BANKING PORTAL
It is started in the Bank`s website incorporating all our agricultural
lending schemes and simplified Common Application Forms.
The Bank has extended credit of Rs. 216 crore to beneficiaries where the
loan amount does not exceed Rs. 50000 per borrower.
MICRO & SMALL ENTERPRISES (MSE) - ONLY PRIORITY SECTOR PORTFOLIO
The advances to MSE increased to Rs. 13518 crore at the end of the current
year from Rs. 10999 crore as on 31.03.2011. 202 branches have been
identified for focused attention on MSE credit. Extensive training has been
provided to Branch Managers of these branches at our Apex Training
Institute in Mumbai. These branches are now adopting cluster-based approach
for accelerated growth under the MSE. Further, the Bank is extending
collateral free loans up to Rs. 100 lakhs for setting up units under Micro
& Small Enterprises sector, which are also eligible for cover under CGTMSE
scheme. Bank has organized 9 Entrepreneurship Development Programmes and 12
symposiums across the country, for new, young and budding MSE
Started on the Bank`s website incorporating all our lending schemes and
simplified Common Application Forms.
SELF HELP GROUPS
During the year 13256 groups were formed under the scheme by the Bank. Out
of which 6797 groups have been credit-linked. Since inception of the scheme
the Bank has formed 152190 SHGs out of which 95128 groups are credit-linked
with outstanding balance of Rs. 766.57 crore at the end of the year. Out of
the credit-linked groups, 76953 are women SHGs with total sanctioned limits
of Rs. 603.26 crore which comes to 80.90% of total credit linked groups.
PERFORMANCE UNDER LEAD BANK:
Our Bank is shouldering the responsibility of Lead Bank in 48 districts of
the country. Our Lead Bank officers are coordinating with other banks in
the district. Particularly in matters like branch expansion and credit
planning. They are also coordinating with Govt. offices.
AGRICULTURAL DEBT WAIVER AND DEBT RELIEF SCHEME 2008
Bank has lodged the claim under Debt Waiver and Debt Relief scheme 2008
separately with RBI for their reimbursement, the position is as under:-
Rs. in crore
Debt Waiver scheme Debt Relief Scheme Total
A/cs Amount A/cs Amount A/c Amount
447000 978.54 67072 147.77 514072 1126.31
RBI/Government of India reimbursed the full amount of Rs. 1126.31 crore to
STATE LEVEL BANKER`S COMMITTEE (SLBC)
Bank is convener of SLBC in the state of Madhya Pradesh. During the year
2011-12, four SLBC meetings were held to review and monitor the progress
made in the State under various parameters including Government sponsored
programmes by different development agencies.
GOVERNMENT SPONSORED PROGRAMME (2011-12)
During the year, the Bank has sanctioned loan under different Government
sponsored programme as under:
Rs. in crore
Scheme Disbursement during 2011-12
1. SGSY 13525 134.18
2. SJSRY 4137 26.01
3. PMEGP 6244 185.97
ADVANCES TO WEAKER SECTIONS
During the year, the Bank has extended loans of Rs. 13214.22 crore to
various categories of weaker sections which constitutes 10.07% of ANBC,
which is above the target (10%) envisaged by Government.
ADVANCE TO MINORITY COMMUNITIES
Govt. of India in its new Prime Minister`s 15 point programme for welfare
of Minorities has envisaged a target of 15% of priority sector lending to
minority communities. Bank has extended various loan facilities amounting
to Rs. 6179.54 crore to 541224 beneficiaries, belonging to different
Minority communities which accounts for 15.16% of Priority Sector lending
as on 31.03.2012.
ADVANCES TO WOMEN BENEFICIARIES
Credit disbursement to women beneficiaries, has improved over the past year
resulting the outstanding credit to women as on 31st March 2012 at
Rs.6585.14 crore. This is 5.02% of ANBC as against the stipulated RBI norms
of 5% of ANBC.
DIFFERENTIAL RATE OF INTEREST (DRI)
Advances under DRI scheme were Rs. 35.18 crore on 31st March 2012.
CENTRAL KISAN CREDIT CARD (CKCC)
Bank has issued Kisan Credit Cards to 1369858 beneficiaries till 31st March
2012, amounting to Rs. 8428.05 crore.
SOCIAL SECURITY SCHEMES
1. JANSHREE BIMA YOJANA
The scheme is operated in association with LIC of India to provide life
insurance cover to rural and urban poor women, who are below or marginally
above the poverty line and who are members of credit linked women SHGs of
our Bank. Bank has already covered 21267 women beneficiaries with premium
amounting to Rs. 21.26 lakhs during the year 2011-12.
2. RASHTRIYA KRISHI BIMA YOJANA
Under the scheme, cover is extended to the farmers for the losses due to
non-preventable risks like natural calamities etc. The above scheme is
available throughout the country for cereals, oilseeds in the notified
3. CENT JANATA CREDIT CARDS (CJCC)
Bank has issued 34261 cards (including Overdraft accounts) amounting to
Rs.34.75 crore to beneficiaries residing in the rural and semi urban areas
to meet their requirements.
4. RURAL GODOWNS AND WAREHOUSES/COLD STORAGES
Bank has extended advances for construction of rural godowns and warehouses
/cold storages to 362 accounts amount is Rs. 685.78 crore so that farmers
are not compelled to make distress sale of their produce during peak
season. Bank has extended advance for warehouse and cold storage in various
accounts and farmers are taking benefits of these schemes. This does not
include advance against warehouse receipts.
5. "CENTRAL BANK OF INDIA SAMAJIK UTTHAN AVAM PRASHIKSHAN SANSTHAN" (CBI-
Bank has opened 49 FLCCs. FLCCs to provide free Financial Literacy to the
villagers on the various banking products and counseling to distressed
farmers/borrowers, irrespective of clientele.
6. RURAL SELF EMPLOYMENT AND TRAINING INSTITUTE (RSETI)
Bank has established 46 RSETIs (44 in lead districts and two in non lead
district allotted under SLBCs). Under this 715 training programmes
conducted and 23289 candidates were trained.
7. INDIRA AWAS YOJANA
Bank has extended loan of Rs. 101.15 lakh to 509 beneficiaries under the
scheme for construction of dwelling units.
3725 villages having population more than 2000 have been allotted to the
Bank to cover under Financial Inclusion Plan by March 2012. Bank has
covered all these villages by 21 December 2011, 3629 villages have been
covered through Business Correspondent model and 96 villages have been
covered through brick and mortar branches.
A total of 8012 villages, including villages with population less than
2000, have been covered under financial inclusion and 4701 Business
Correspondents were appointed. We have issued 30.93 lacs Smart Cards in
these villages. All the accounts have been migrated to our CBS.
We have developed five tailor made products exclusively to be delivered
through BC Model.
* Cent Bachat khata - No Frill Account for making and receiving
* Cent Vikas khata - SB a/c with limited OD facility up to Rs. 2500/-
* Cent Smart Kisan Credit Card - Entrepreneurial/consumption credit to
farmers up to Rs. 25000.
* Cent Smart General Credit Card - Entrepreneurial/consumption credit to
non-agriculturist up to Rs. 10000.
* Cent Variable Recurring Deposit Scheme - Pure deposit product for term up
to 3 years with variable installments. Bank has also launched an urban
inclusion project at Delhi and NCR.
All 3662 villages, with population above 2000, allotted to our 7 sponsored
RRBs under Financial Inclusion Plan have also been covered.
Total outstanding under Retail Lending Schemes increased from Rs. 12522
crore as on 31.03.2011 to Rs. 17496 crore as on 31.03.2012, registering
quantum growth of Rs. 4974 crore and percentage growth of 39.72% over March
2011. The retail portfolio of the Bank was 11.61 per cent of total
RETAIL LENDING GROWTH AT A GLANCE (Rs.in crore)
31/03/2010 31/03/2011 31/03/2012
Actuals Y-O-Y Actual Y-O-Y Actual Y-O-Y
Growth Growth GROWTH
Retail Advances 9902 9% 12522 26% 17496 40%
Total Advances 107319 24% 131407 22% 150725 15%
% of Total
Advances 9% 10% 12%
SHARE OF RETAIL CREDIT IN TOTAL CREDIT PORTFOLIO (Rs. in crore)
RETAIL CREDIT 12522 17496
TOTAL CREDIT 131407 150725
SHARE OF RETAIL 9.53% 11.61%
Introduction of new Retail Loan schemes
1. Launching of Scheme for financing small entrepreneurs "Cent Sahyog"-
Bank has introduced a new Retail Loan Product "CENT SAHYOG", particularly
for the (MSE) Micro and Small Enterprises sector (Manufacturing & Services)
with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
cover. The objective of the Scheme is to offer hassle free financial
requirement up to Rs. one crore to the MSE segment which is large and
mostly unbanked. Special emphasis has been given to tiny entrepreneurs with
financial assistance up to Rs. 10 lacs. The scheme has become operative
from October 2nd, 2011.
The scheme has been very well received by the MSE segment which is evident
from the fact that Rs. 200 crore encompassing 2834 accounts has already
been disbursed under the scheme within a short span of 6 months despite its
small ticket size.
2. Housing Loan Variants-
* Cent Home Swabhiman Plus
This product is introduced to facilitate Seniors/Senior Citizens to avail
Home Loan with reverse mortgage facility and we also tied-up with Tata
Housing Development Ltd for a project of houses for Senior Citizens/
citizen above 55 years of age.
* Special Housing loan scheme for employees of Central/State Govt. and
employees of PSUs of Central Govt.
Under the Scheme, Housing loan was extended to Central/State Govt.
employees and employees of PSUs of Central Government at base rate.
* Scheme for staff members for conversion of outstanding balance in staff
housing loan scheme into direct housing loan scheme on the day of
The scheme is aimed at retaining the staff housing loans with the Bank
3. Cent Param
Salary account scheme with many attractive features like free remittance,
Retail Loans at concessional rates, customized credit cards etc. was
specially designed for the armed and para military forces.
4. Comprehensive Scheme on Channel Financing
Channel Financing is an innovative option for extending working capital
finance to dealers who have business relationships with large companies. It
is also a mechanism through which a Bank / Financial Institution meets the
various funds related requirements along the Supply Chain at the suppliers
end. This thereby helps the supplier in sustaining a seamless business flow
and avoiding working capital related difficulties.
* Modification in the existing Retail Loan Schemes:
Cent Home Loan Plus * Overall limit was enhanced.
* Eligibility criteria changed.
Cent Mortgage * Property situated at rural location
was made eligible for finance.
* Delegated lending powers of Branch
Managers suitably increased.
* Other constraints removed.
Cent Rental * Delegated lending powers of Branch
Managers suitably increased.
* Other constraints removed.
Cent Vidyarthi * IBA Model education loan scheme introduced.
Executive MBA Scheme * Scheme modified and coverage widened.
Educational Loans to * Eligible quantum of loan enhanced from
students of IIMS Rs. 12.5 lakh to Rs. 20 lakh.
* No collateral/guarantee required.
Loans to pensioners * Eligible quantum of loan suitably enhanced.
* Age based eligibility improved.
Personal Gold loan * Loan Limit per gram increased.
* Rationalization of Schemes: Several Retail Lending Schemes have been
launched by the Bank over the years which were either client specific or
purpose specific, in order to cater to the demand of the market at various
points of time. The product basket under Retail Lending have been
In order to provide relief to the borrowers from the fluctuating amount of
EMI due to upward revision in interest rates, the repayment period can now
be readjusted accordingly and EMI will remain unchanged.
* Outsourcing Policy: Out sourcing of Contact Point Verification (CPV) and
Document Verification Reports (DVR) for the Retail Loan proposals
sanctioned through CCPC can now be done. The work is to be outsourced to
the well-known Field Investigating Agency (FIA) by calling for Request for
Proposal (RFP) at Zonal level for the CCPCs under the Zone. The methodology
of outsourcing should strictly be in terms of the "OUTSOURCING POLICY" of
* Central Registry: In terms of rules framed under the Central Registry
under the provisions of SERFAESI Act, 2002, all mortgages created by
deposit of title deeds are required to be registered with the Central
Registry within 30 days from the date of creation of mortgage. As the
notification was made by Govt. of India on 31.03.2011, it effectively means
that all mortgages created/ to be created by our Branches by deposit of
Title Deeds on or after 31.03.2011 need to be registered with the Central
Registry. The Department has taken all necessary steps to stream line the
process so that data entry can be done centrally at the Regional Offices. A
new version of the Central Registry has now been introduced from 01.04.2012
based on the Checker / Maker concept requiring Digital Certificates for the
Checkers. Department has assigned the job of issuing Digital Certificates
to Sify Technologies Ltd. Currently, the new version is under
implementation in the Bank.
* Retail Lending Policy - A vibrant economy has created a large middle
class segment with a huge purchasing power in the country. Sensing the
scope of this burgeoning retail market, there has been a paradigm shift in
the approach of Banks in India, who are now targeting these individual
borrowers for affording financial assistance rather than the corporate
segment, which of late has lost its sheen due to decreasing NIM.
Considering the importance ascribed to Retail Lending in our corporate
goal, need for a Retail Lending Policy was felt. The department has come up
with a Retail Lending Policy (2011-12). The Policy aims at providing a
uniform and hassle free appraisal method for Retail Loans to the field
level functionaries, as well as outlining major feati of Retail Lending
schemes and risk mitigating measures.
* As on 31st March 2012, 23 Centralized Credit Processing Centers (CCPCs)
are functioning at major Regional headquarters across the country.
* Bank has applied for opening of 54 CCPCs at remaining Regional
* In the second half of the financial year, Bank acquired new software
CLASS for processing retail loans, monitoring accounts and managing NPAs
* Successfully customized our Retail Loan products in the new software and
launched in 16 CCPCs. It will be launched for all the products at all CCPCs
/ branches during April - May, 2012.
* Bank has planned to open Retail Asset Branches (RABs) in Financial Year
2012-13 at all Regional headquarters.
* Entered into tie-up with TATA Housing, Maruti Suzuki India Ltd. and TVS
Bank received the Golden Peacock Award for Innovative Product/Service for
its retail product Cent Sahayog, which was launched on 2nd October, 2011.
The product has been designed to strengthen the micro and small
manufacturers and service providers (MSE) through a process of fast and
hassle-free credit delivery, this product aims to bring this largely
unbanked segment into banking fold. The product has achieved unprecedented
success and within six months of launch, has garnered sizeable business of
Rs. 200 crore.
* To keep pace with the Industry standards and peer Banks and to meet the
diverse financial demands of the customers, Bank is continuously modifying
and revamping the existing retail lending schemes like Cent trade, Cent
Mortgage, Direct Housing Finance, Education loan for Executive MBA, Cent
Vidyarthi Scheme under revised IBA Model Education Loan Scheme.
* To cater to the latent demand of our customers we have also introduced
new schemes like Cent Sahyog, Cent Param, and Special Housing Loan for
* We are also in process of devising new schemes like Redevelopment of old
Housing Society, Cent Home for Senior Citizens and Housing Loan with OD
Technological Initiatives: Introduction of CCPCs and CLASS software
* In a major step towards streamlining loan appraisal process and for
creating a robust framework for monitoring the loan accounts our Bank has
obtained CLASS (Computerized Loan Appraisal System and Supervision)
Software for loan processing, sanctioning and monitoring of retail
* The software takes care of the entire process starting from origination &
sanction of the proposal to final monitoring and NPA management in the
product. This also helps to reduce the turnaround time in loan appraisal
and facilitates paperless processing of applications.
Tie Up Arrangements
* To give a boost to our retail credit we have tied up with more than 160
educational institutes, vehicle manufacturers namely Tata Motors, Maruti
Suzuki, TVS Motors.
* We also tied up with Indian Dental Association (IDA) to provide our
retail advances to Dentists and their family members.
* We are also in process of tie up with Foreign Educational Institutes to
boost our Foreign Education Loan portfolio.
* With the introduction of the Retail Lending Policy, field functionaries
now have been provided with a hand book containing all major parameters
related to Retail Lending.
* Implementation of the new version of Central Registry with provision for
batch uploading of mortgage data, so that eventually every Branch will be
able to upload data independently.
* To boost our Housing Loans we are in process of tie up with reputed
builders like NYATI, MCHI, and Lodha Group and Tata Housing Projects etc.
* For meeting the different insurance needs of our clients we have tied up
with Bajaj Alliance for Education Loans, Kotak Mahindra Life Insurance for
Special Package Housing loans.
NPA MANAGEMENT STRATEGIES UNDER RETAIL LENDING
In order to implement a sustainable NPA management mechanism which would
include monitoring, prevention of slippages through early warnings and
adequate recovery measures, the following strategy has been formulated:
* Introduction of CLASS software for all the retail products w.e.f.
01/04/2012 will help the branches in monitoring the retail advances from
the 1st day of overdue.
* The software allows Regional Offices/ Zonal Offices to monitor the
overdue from their offices.
* Branches will be advised to take necessary steps including action under
SARFAESI Act to recover the dues.
* Conducting recovery camps on regular basis to recover the NPA amount and
settle the accounts in the recovery camps under OTS.
* Close monitoring from Central Office and exclusive monitoring team at
Retail Banking Department.
* Forming Teams at RO for DATA Cleansing and to reduce system driven NPAs.
* Ensuring Notices under Section13 (2) are issued immediately, possession
of property taken and property auctioned, in NPA accounts, where immovable
property is held as security.
* All the Mortgaged properties are registered with Central Registry.
STRATEGIES FOR INCREASING RETAIL CREDIT
* Marketing Teams to visit various departments of State Governments/Central
Government/PSUs/Defence /Paramilitary forces to canvass salary accounts/
Housing Loan & other Retail products.
* Conducting multipurpose camps for sanction of Retail loans & recovery in
* Cross selling of the Product by approaching corporate for opening their
* Housing Loan: - Tie up with reputed builders such as LODHA builders,
Shapoorji Pallonji ,Shah Builders, Godrej Property, Bombay Reality etc.,
participating in real estate expo and trade fairs/ Property Mela.
* Tie up with TATA Housing Finance for financing housing loans for senior
* Overseas Educational Loans: - Thrust will be given for overseas education
loans which are generally secured by suitable collateral security. We are
also exploring opportunities for tie up with Educational Consultants,
Institutes having collaboration with foreign universities and participating
in foreign education fairs.
* Cent Param: Exploring the vast banking potential of defense and para
Military personnel through lucrative benefits of Cent Param. Tie up with
NYATI builders to provide Housing loans to defense personnel.
* Cent Sahyog: Explore opportunities to penetrate more into MSE sector by
arranging knowledge camps and sponsoring trade fairs for MSE businessmen.
* Marketing of Retail Products: The marketing division will be strengthened
and the Retail Products will be given more visibility through greater
synergy between the Marketing and Retail Departments.
Foreign Exchange Business of the Bank is carried out through 97 Authorized
Dealer Branches spread across the country. For operational efficiency, Bank
has a centralized Dealing Room at Mumbai for attainment of better funds
management and operational convenience. During the current Financial Year,
the Export Credit portfolio of the Bank increased from Rs. 3865 crore as on
31.03.2011 to Rs. 4262 crore as on 31.03.2012. Bank has opened specialized
NRI Branches in Anand, Margao, Hyderabad and Bhuj to cater exclusively to
the NRI clients. Bank has installed e-learning and decision making software
"Instant NRI" and "Instant LC++" on its intranet for use across branches.
In the Financial Year Bank has obtained permission for opening of its
Representative Office at Nairobi, Republic of Kenya from the home regulator
Reserve Bank of India and Representative Office will become functional
during 2nd Quarter of FY 2012-13. Bank has also proposed to open Branch in
DIFC Dubai and counters at airports.
TREASURY, FUNDS AND INVESTMENT
The investment portfolio of the Bank has increased to Rs. 59577 crore as on
31st March 2012 as against Rs. 58287 crore as on 31st March 2011 thereby
recording an increase of 2.21% over the previous year. The ten year
benchmark yield stood at 8.57% as on 31st March 2012.
In debt market, yields hardened on account of consistent increase of policy
rates by RBI and increase in borrowings. RBI raised Repo and Rev Repo rate
to 8.50% from 6.75% as a measure to curtail increasing inflation. During
the period benchmark yield scaled up from 7.98% as on 31st March 2011 to
8.57% as on 31st March 2012.
Increase in borrowing by Govt. put pressure on liquidity and it was in
deficit mode for most part of the year. RBI came out with OMO purchases to
ease mounting liquidity pressure in the system during the period from
November 2011 to March 2012. RBI purchased securities worth Rs. 135000
crore and infused liquidity to that extent. RBI also cut CRR by 125 bps
which infused approx. Rs. 80000 crore in the system.
In the liquidity stressed conditions and hardening yield scenario, treasury
recorded trading profit of Rs. 320.06 crore marginally higher as compared
to previous year trading profit of Rs. 311.93 crore. This was achieved by
strategic planning of resources and grabbing the market opportunities with
proper analytical views. Investment increased just by 2.21% and yield on
investment increased from 7.45% to 7.53%.
In compliance with the Reserve Bank of India guidelines, the Bank has
transferred Govt. and State Govt. securities amounting to Rs. 4064.25 crore
from AFS to HTM and booked depreciation of Rs. 159.75 crore. The
composition of investment portfolio of the Bank as on 31st March 2012 is as
(Rs. in crore)
Composition 31.03.20111 31.03.2012
1. SLR 48054.94 50977.43
2. Non-SLR 10232.14 8599.33
TOTAL 58287.08 59576.76
During the year, Bank has recovered an amount of Rs. 24.29 crore in written
Bank has actively traded in both interest rate and currency derivatives.
Among the Interest rate derivatives Bank has traded in Overnight Indexed
Swaps. Bank also traded actively in currency futures and forwards in the
currency derivative segment. Bank has also used derivatives for hedging
purpose. Bank has earned Rs. 3.31 crore in derivatives transactions.
Risk Management System/Organizational Set Up
Risk Management systems are now well established in the Bank. Risk
Management Committee of the Board of Directors regularly oversees the
Bank`s Risk Management policies/practices under Credit, Market and
Operational risks. The Committee reviews the policies and procedures for
pricing of products and assessing the risk models relative to market
developments and also identifies and controls new risks. The committee also
regularly monitors compliance of various risk parameters by the concerned
departments at the corporate level.
Risk Management Structure
At operational level, various Committees like Asset Liability Management
Committee (ALCO) for Market Risk, Credit Risk Policy Committee (CRPC) for
Credit Risk and Operational Risk Management Committee (ORCO) for
Operational Risk have been constituted comprising of members from the top
management team. These Committees meet at regular intervals throughout the
year to assess and monitor the level of risk under various Bank operations
and initiate appropriate mitigation measures wherever necessary. The Bank
has identified officers in the rank of Senior Managers/Managers to act as
`Risk Managers` at all the Regional Offices. The Risk Managers act as the
`Extended Arms` of the Risk Management Department of the Central Office at
the Regional Level. The Bank has also identified officers at the senior
level in various functional departments of Central Office to act as `Nodal
Officers` in the matter of submission of data relating to Risk Management
and support risk management in the Bank.
Market Risk Management
The Mid Office reviews the market position, funding patterns and ensures
compliance in terms of exposure, duration, counter party limits and various
sensitive parameters and the reports are presented at regular intervals to
the top management. The tools such as VaR and Duration analysis are used on
an ongoing basis to measure and manage the risk to Bank`s NII in the short
run and equity value in the long run. A model to estimate Capital charge on
trading portfolio on ongoing basis is developed by TCS which is being
implemented as per the Basel II guidelines on the Market Risk. The Bank has
reviewed the existing Investment and Market Risk Management Policy. Counter
party limits for Forex dealings have been fixed/reviewed as per their
latest standing and rating in the market.
Credit Risk Management
Bank has a well-documented Credit Risk Management Policy, which was last
reviewed by the Board on 30.05.2011. The Bank has approved procurement of
Facility Rating Module with Risk Adjusted Return on Capital (RAROC), Loss
Given Default (LGD) and Exposure At Default (EAD) assessment tools from
CRISIL Ltd. The tool is installed and made operational in the first quarter
of 2011-12. The Bank is also developing Portfolio Rating Models for grading
retail loan portfolios where ratings of individual loan entities are not
feasible on an on-going basis. The developments in credit risk management
are being reported to and monitored by the Credit Risk Policy Committee
headed by the Executive Director. As preparedness for moving to advanced
approaches, bank is in the process of developing models for calculating PD,
EAD & LGD for both Corporate & Retail portfolio.
Operational Risk Management
Sound Integrated Risk Management Structure encompassing Operational Risk in
the business is guided in the Bank by a well laid down Operational Risk
Operational Risk Management Committee (ORCO) reviews the risk profile of
the Bank on quarterly intervals and the oversight by the Board of directors
strengthens the qualitative aspects related to Operational Risk. Bank is
developing models and will apply to RBI for graduating to Advanced
Measurement Approach under Operational Risk. Implementation of New Product
Approval Policy Framework guides the Bank for mitigating the risk
associated with new products or activities.
Bank has a robust ICAAP (Internal Capital Adequacy Assessment Process) in
place. Capital requirement for bank is drawn for a time horizon of 4 years.
Capital requirement is seen in relation of maintaining minimum regulatory
capital requirement. Review of the capital vis a vis the estimates are
undertaken on a quarterly basis.
Asset & Liability Management Systems
ALM mainly deals with measuring and managing the liquidity and Interest
rate risk of the Bank with an objective of profit maximization. ALCO (Asset
& Liability Committee) met 24 times during the year to review the position
of the Bank with regard to liquidity and other related matters.
Besides regulatory reporting, ALM is also engaged in Interest determination
on Deposits as well as Base rate and BPLR fixation. During the year 2011-
12, revision was made seven times in deposit interest rates and the Base
Rate was revised twice.
ALM department presents different analysis with regard to position of idle
assets (Cash in hand, Balance with other banks etc.), rate of interest
wise/Base Rate/BPLR/Fixed Rate wise classification of advances, comparative
working results of peer banks vis-a-vis our bank etc. before top team for
making meaningful decisions.
Implementation of Basel II Guidelines
Reserve Bank of India has issued updated master circular on implementation
of the New Capital Adequacy Framework in July 2011. As per the guidelines,
the Bank has adopted Basel II norms with effect from 31st March 2009 and
provided capital as per Standardized Approach for Credit Risk, Basic
Indicator Approach for Operational Risk and Standardized Duration method
for Market Risk.
Bank has appointed a solution provider for implementation of the
internationally reputed SAS Risk Management solution throughout the bank to
meet Basel II norms. Reserve Bank of India has set out timelines to the
commercial banks for graduation to advanced approaches. Banks were advised
to undertake an internal assessment of their preparedness for migration to
advanced approaches. Our Bank is the first among all commercial banks to
have submitted its application to RBI for graduating to The Standardized
Approach (TSA) under Operational Risk. The Bank has appointed a consultant
to evaluate /assess the preparedness of the Bank for moving to advanced
approaches in respect of all risks and to enhance / Strengthen existing
Risk Management Systems, Policies, Procedures, Process, MIS, Analytics etc
and also to implement integrated risk management system in the Bank. All
necessary policies such as Credit Risk Management Policy, Operational Risk
Management policy, Market Risk Management Policy, Credit Risk Mitigation
and Collateral Management Policy, Market Discipline and Disclosures Policy,
ICAAP etc are in place duly approved by the Board.
Our Bank`s preparedness for Basel - III
RBI has issued final guidelines on Implementation of Basel III on 2nd May
2012. These guidelines would become effective from January 1, 2013 in a
phased manner. The basel III ratios will be fully implemented as on
For the financial year ending 31.3.2013, banks will have to disclose the
capital ratios computed under the existing guidelines (Basel II) on capital
adequacy as well as those computed under the Basel III capital adequacy
Basel III guidelines aim at improving the quality of the capital, address
the liquidity position in addition to the leverage. The bank is in the
process of internal assessment of the capital, liquidity ratio and the
leverage ratio under Basel III regime and steps are afoot for putting the
requisite system, in place.
The Bank has a well-defined Recovery Policy containing detailed guidelines
for NPA Management. It encompasses all areas of NPA Management, Monitoring
and Follow-up measures, Staff Accountability, SARFAESI Act, Willful
Defaulters and MIS. The policy is reviewed from time to time to incorporate
the latest changes /developments in Economy and trends in NPA Resolution.
As per directives of Ministry of Finance, Government of India, we have
switched over to 100% system based identification and collation of NPAs by
30.09.2011. Our Bank had moved to 100% CBS platform in December 2010 only,
whereas peer banks had completed the exercise much earlier. As such, we
have completed the data cleansing exercise in 9 months, compared to 2 to 3
years available to peer banks. Hence, there is increase in Gross NPA during
the year. We have put in place proper on-going strategies to rectify such
errors and hopeful of a handsome up-gradation in the next fiscal.
1. During the year 2011-12, the Bank has improved recovery performance but
due to high slippage on account of adoption of system driven NPA and
adverse economic conditions, the NPA level has gone up.
a. Gross NPA level has gone up from Rs. 2394 crore to Rs. 7273 crore
b. Net NPA has increased to Rs. 4557 crore from Rs. 847 crore in previous
c. Gross NPA and Net NPA Ratios have increased from 1.82% to 4.83% and
0.65% to 3.09% respectively.
d. Cash Recovery has increased from Rs. 736 crore (including sale of assets
Rs. 177.74 crore) to Rs. 754 crore (including sale of assets Rs. 75 crore).
2. Special OTS Scheme for NPA accounts up to outstanding Rs. 1.00 lac was
extended up to 31/03/2012. An amount of Rs. 37.73 crore has been recovered.
3. Under the Simplified OTS Scheme for NPA accounts of outstanding above
Rs1.00 lac up to Rs. 10.00 lacs , Bank has recovered Rs. 18.17 crore during
4. A new scheme -" Krishak Raahat Yojna" was introduced during the year
2012 for recovery in NPA of Tractor/ Agriculture loans of sanctioned limit
Up to Rs. 10.00 lacs and an amount of Rs15.51 crore has been recovered.
5. DRT LOK ADALATs and District Level LOK ADALATs and other recovery Camps
were conducted at different locations at Regional/Zonal Offices forming
cluster of branches during the year ,where major thrust was given to
recovery through negotiated settlements.
6. Branches/Regions with high concentration of NPAs in small loans have
been identified & focused attention is paid to these Branches /Regions.
Branch/Region wise action plan has been drawn for quick resolution of NPAs
in these Branches/Regions.
7. A total number of 7303 weekly/monthly recovery camps were held at
Branches/Regional Offices in which 64275 cases were settled amounting to
Rs. 745 crore.
The Bank is committed to contain NPA level by concerted recovery efforts
and also by improving the assets quality during the year 2012-13.
Insurance service is provided by our Bank under Corporate Agency of LIC of
India for life insurance and Chola MS General Insurance Company for non-
life insurance products.
The performance highlights for the year 2011-12;
* All 16 Zones declared as BIMA Zones by LIC of India
* 67 Regions declared as BIMA Regions and 800 Branches declared as BIMA
Banks by LIC.
* Bank has sold 127540 Life Insurance policies during the year and
collected premium of Rs. 184.70 crore recording a growth of 72% over
* Bank earned commission of Rs13.53 crore from Life Insurance business.
* Bank has sold 164181 policies under general insurance business and earned
commission of Rs. 6.30 crore.
* Bank introduced family floater Rural Health Insurance Scheme with tie up
arrangements with general insurance partner Chola MS general insurance
DISTRIBUTION OF MUTUAL FUND
* Bank has tie up arrangement with leading 11 mutual fund houses and earned
commission of Rs. 0.63 crore during 2011-12.
Bank is offering depository services through 145 identified branches to
23709 demat account holders. Depository service is offered as a Depository
participant under arrangement with Central Depository Services Ltd. (CDSL)
through web-based solutions provided by CMC Ltd.
ON LINE TRADING
Bank is offering "three- in- one" "On-Line Trading" facility with Trade
name "Cent -e-trade". Customers maintaining bank account and Demat account
with the bank are offered on-line-trading facility for trading in Equity
Shares and Derivatives under arrangement with leading broking firm, M/s.
Angel Broking Ltd.
Capital Market Services Branch opened in Mumbai for offering capital market
facilities such as ASBA, Demat, Clearing Bank etc. is the controlling
branch for on-line trading.
1. CORE BANKING SOLUTIONS:
All branches and other offices were brought under Core Banking platform.
Bank has achieved 100% coverage of CBS at all RRBs. All branches were
opened under CBS from day one.
Location wise coverage of CBS as on 31.03.2012, are given hereunder:
Extension Counters 18
Extended Service/Satellite 19
Asset Recovery Branch (ARB) 9
Non- Business Office (NBO) 21
Specialized Centre for
Account Processing (SCAP) 4
Processing Centers (CCPC) 15
Zonal Office: 16
Regional Offices: 75
Training College: 3
Cash Management System (CMS) 9
2. NETWORK & CONNECTIVITY.
Network connectivity has been provided to a total of 4201 locations. BSNL
is the principal service provider for network of the branches. 800 branches
are provided with VSAT backup from different service provider, namely, M/S
Hughes. 300 Links procured for newly opened branches. 275 VSAT have been
installed as the primary links at branches where secondary link CDMA signal
New Check Point Firewall with higher capacity has been installed at DC &
DRC for smooth functioning of new IT Projects ,SDR, LAPS, FI etc. as well
as for the legacy applications. Network uptime has increased to 98% from
96% in the previous year.
Number of branches isolated more than 24 hours has reduced to an average of
3 to 4 branches. Bandwidth of all the Regional Offices has been upgraded to
The link between DC & DRC has been increased to 60Mbps from the existing 44
We are providing Video conferencing facility at all the Regional offices/
Staff Training Centers/Corporate Finance Branches and increasing the
Internet Bandwidth to 8 Mbps from 2 Mbps for the internet bandwidth
3. INTERNET BANKING
Internet banking facility has been implemented for individual and corporate
customers. Through Internet Banking customers can avail various facilities
like Funds transfer, On line Tax credit view, Utility bill payment, On line
Tax payment for Central Govt. departments and various state Govts.,
Airlines booking Movie ticketing, shopping, temple donations, Prime
Minister`s National Relief fund donations, Resonance and Allen`s carrier
Institute fees collection, stop payment of cheques, view cheque status,
customized account statements in addition to regular statement of account,
etc. Besides, there is also facility for on-line password generation for
Retail customers. RTGS/NEFT facility is also available through Internet
Banking for corporate customers.
Funds transfer facility up to a daily limit of 100 crore within Bank as
well as facility for bulk upload of NEFT available under Corporate Internet
Banking. Corporate Internet Banking is available in mix and mode approach
as per the requirement of customer. Branches are advised to promote tax
payments through Internet Banking. User base for Internet Banking has been
steadily increasing and reached about 181540 as on 31.03.2012. An
independent survey conducted by Customer Research Frontier magazine in the
Month of May 2011 quoted that our Internet Banking response time is the
fastest among all the peer banks.
4. ON-LINE TAX PAYMENTS.
E-payment of Direct taxes, excise, service, DGFT license fee, West Bengal
State Government tax, Maharashtra Government Sale tax, VAT and Professional
TAX, UP State Tax payment, ICEGATE customs payment, Jharkhand Tax, Delhi
Sales Tax, are available through Internet Banking for on-line payment using
Internet Banking. A new module for tax collection of Odisha and Bihar Govt.
where customers of more than 40 banks can pay taxes with payment gateway
services provided with the help of Central Bank Of India, has also been
made available. E-Payment system for Ministry of civil services, Food and
other e-PAO`s has been made operational.
5. SMS BANKING:
SMS banking provides account information to the customers with real-time
alerts on business transactions carried out by them. Presently, SMS alerts
are sent to customers in 15 different Indian languages as per their choice
for i) Debit / Credit in account above Rs. 1000/- in saving account and Rs.
50,000/- in Current / OD accounts ii) clearing cheque is bounced iii)
account balance is below the prescribed minimum level iv) fixed deposit
maturity before 7 days.
SMS alerts are also sent to branch managers for maintaining control and
monitoring purposes and also to higher officials when physical cash is not
tallied before EOD and when the outstanding balance in Technical contra at
branches are unattended for certain prescribed numbers of days. SMS alerts
is also proposed for Average weekly cash holding above 0.35% of average
weekly deposit to Regional Manager.
6. MOBILE BANKING:
Mobile Banking is implemented using GPRS with enquiry and funds transfer
operations. The transaction done through Mobile Banking is secured with end
to end inscription and two factor authentication features. As per RBI
guidelines for transaction up to Rs. 5,000 we have implemented low security
version of Mobile Banking. NEFT fund transfer facility is also available in
Mobile Banking application.
7. TELE BANKING:
Phone banking solution is implemented with voice recording in English and
Hindi and the facility is available to all the customers of CBS branches.
8. MISSED CALL ALERTS:
This facility is available to our CASA customers, whereby customers can get
balance and last three transactions free of cost by giving missed call to
specific number. We have received appreciation from Indian Bank`s
Association for this innovative initiative.
9. APPLICATION SUPPORTED BY BLOCKED AMOUNT (ASBA):
Securities and Exchange Board of India has streamlined the existing process
of Initial Public offer of shares by companies and introduced a
supplementary process called as Application supported by Blocked amount
(ASBA). We have launched the ASBA facilities to all our customers by which
an investor can subscribe to public issues (IPO/FPO/Rights Issues) through
the Bank by authorizing the bank to block the application from his/her bank
account and thereafter remit the allotment amount. Customers can also apply
ASBA through Internet banking application for public issues only.
10. KIOSK BANKING:
E-Lobby/Kiosk have facilities of cash deposit, cheque deposit, passbook
printing, transaction enquiry, internet banking. It has been deployed at
four locations i.e. Mumbai Main Branch, CBD Belapur, Pune Camp and Press
Area Branch at Delhi.
Approval is obtained for installing Kiosk/ E-Lobby at 25 Centers.
Accordingly ,we have planned to install two Kiosks each at bigger Zones
viz. Mumbai, Delhi, Chennai, Kolkata, Ahmedabad, Bhopal, Lucknow, Pune &
Hyderabad and one each at smaller zones viz. Nagpur, Raipur, Patna,
Guwahati, Muzaffarpur, Chandigarh and Agra. Implementation of these Kiosks
is expected to be completed by 30th June 2012.
E-Voucher Functionality has been implemented on 21.12.2011 under the system
transaction are done through POS machine, facilitating customers to deposit
/withdraw cash and also to do fund transfer within the bank up to the limit
of Single Window Operator (SWO).
Other initiatives are planned for current financial year are: integration
of GRAS server of Govt. of Maharashtra, installation of 100 kiosks /e-
lobby, integration of E-fright for railways, payment system for LIC of
India through Corporate Internet Banking. Integration with NPCI for Inter
Bank Mobile Payment system, integration with IRCTC for railway ticket
booking through Internet Banking.
12. WEB SITE:
Change in look and feel of the website has been done and ready for the
production promotion. Modification in the on-line complaint module in the
website is completed and informed to the business department. For Internet
Banking and Bank`s official website, M/s AAA Technologies Pvt. Ltd. has
completed the Security Audit for the 4th quarter.
13. RBI PROJECTS:
All CBS branches are enabled for RTGS and NEFT facility using the Straight
through Processing (STP). As on 31st March 2012, 4151
branches/EC/NBOs/offices have been enabled for RTGS and 4150
Branches/ECs/NBOs/offices enabled for NEFT. NEFT facility is also available
through Internet Banking System.
Consequent upon implementing CBS in all 7 RRBs, total number of 1811 RRB
branches and extension counters have been brought under NEFT.
14. CHEQUE TRUNCATION SYSTEM (CTS)
CTS implemented in Chennai on an outsourced model. CTS implementation in
Bangalore on pilot basis was done on 24.03.2012 using outsourced model.
Approval obtained for implementation of CTS in Coimbatore, using outsourced
15. CALL CENTER
Call Centre is operated on outsourced Model by IDBI Intech since July 6,
2011. CBS interface has been provided at Call Centre with restricted view
option enabling the Call Centre agents to provide various accounts level
information to customers. Following services are being offered to customers
through Call Centre.
* Information on Bank`s products and services.
* Information on Branch/ATM Location.
* Information on Interest Rates and Services Charges.
* Balance Enquiry.
* Transaction Enquiry.
* Enquiry on Cheque Number.
* Debit Card Hot-listing.
* Enquiry on Interest Earned/Interest Paid.
* TDS Enquiry.
* Transaction Details
* Status of Cheque issued or deposited
* CD/CC/OD limit and Interest enquiry
* Responding to any other calls received from customers.
* Recording of grievances and feeding it in Bank`s Customer Grievances
system for its redressal at an appropriate level.
In order to make the customer services more automated and reduce the
response time. Following services are offered through Interactive Voice
Response (IVR) in online environment.
* Balance enquiry
* Last 4 transactions
* Cheque Status
* Stop Cheque payment
* Transaction PIN generation
16. SINGLE DATA REPOSITORY (SDR):
SDR report requirement finalized and 564 reports given to IBM for
designing. Planned to publish reports by May,2012 onwards and a prototype
of NPA dash board is built. Corporate Performance Management (CPM) rolled
out on 5th March, 2012 for Planning & Budgeting exercise. ALM- Static SRS
is finalized, ALM related data extraction is in process and expected to go
live by May, 2012.
Parallel Payroll processing for Central Office and all 16 Zones completed
for the Month of February 2012 through People Soft HRMS solution. It is
planned to process the salary of all employees for the month of April-2012
centrally under People Soft HRMS. On-line holiday home/transit home booking
facilities made live through HRMS.
18. IT GOVERNANCE.
The necessary structure for IT Governance in the bank has been set up with
the formation of IT Strategy, IT Steering & IT Risk management committees
in the Bank. Steering committee as also the alignment of IT strategy with
business strategy would be discussed at length. Balanced scorecard for
projects and IT as a whole has been prepared & approved in Board and the
process of monthly updating has been initiated with latest scoring as of
Jan 2012 submitted.
The 1st meeting of the IT Steering committee was held with the following
> IT policy approved.
> Business continuity plan discussed and it was decided to have the BCP for
branches enumerating the activities that shall be performed at branches
during network failure and the same to be circulated to all business
offices as well as displayed as notice for the customers.
> Hardware disposal policy to incorporate clear instructions and powers of
BM/RM/ZM/etc. for steps for disposal of PC, Printers, ATM, etc.
> The need for improvement in Network connectivity was stressed
AUDIT AND INSPECTION
The compliance culture has improved significantly in the Bank during the
year. Initiatives were taken to put in place a robust audit mechanism. The
initiatives include - adoption of Information Systems Audit policy,
revision of Internal Audit policy and Concurrent Audit policy falling in
line with the draft recommendations of Shri Basant Seth Committee.
Introduction of web-based application system for firms of Chartered
Accountants seeking concurrent audit of branches, off-site monitoring,
increasing the ambit to check money laundering, 100% KYC up-dation on CBS,
closure of all audit reports due for closure, recovery of revenue leakage
detected during the fiscal, etc. The audit function also helps in
redressing the systemic issues for rendering better customer service at
As on 31st March 2012, Bank is having network of 4011 branches and 29
satellite offices. During the year 283 branches were opened including up
gradation of 121 Extension Counters and conversion of 5 Satellite branches
in to full-fledged branches, 4 specialized NRI Branches, 1 Capital Market
Service Branch, 1 Asset Recovery Branch and 7 Mid Corporate Branches . The
demographic distribution was 1497 branches in Rural, 1037 branches in Semi-
Urban, 781 branches in Urban and 696 branches in Metro centers. To
commemorate the Centenary Day, Bank has opened 100 branches on 21st
In the beginning of the year there were 139 Extension Counters. After
conversion of 121 Extension Counters into full-fledged branches it remained
18 at the end of financial year 2011-12.
Bank has introduced many new concepts during this financial year for
improving Customer Services.
> A customer can open an account in our bank without introduction from
> Bank has started issuing ATM card to minors also.
> Our Bank has introduced new policy for "Senior Citizens/Disabled/
Incapacitated Account Holders-2012" .
> Our bank has implemented recommendations of Damodaran Committee on
Our Bank has started 24x7 hours Call Center with Toll Free Number 1800 200
1911 for providing a better avenue for redressal of grievances to
Customers. The Customer Grievances Redressal Mechanism has been made fully
on-line for quick disposal of grievances. Our Grievances Redressal
Mechanism has been adjudged as the best in the Customer Satisfaction survey
conducted by Outlook Financial.
Consequent upon brining all the branches under Core Banking Platform, a new
IBR System `C2C`(Core-to-Core) implemented w.e.f. 01.02.2012. The new
System has One-to-One matching of entries (Auto Reconciliation) which was
not available in the old system and many other features regarding issue and
payment of Demand Drafts, Inter Branch Transactions and Inter- Bank Cash
Bank has been awarded with `Indira Gandhi Rajbhasha Shield` for the best
implementation of Official Language Policy of Government by Official
Language Department, Ministry of Home Affairs, Government of India during
the financial year. The Shield was received by Shri Mohan V.Tanksale,
Chairman and Managing Director from the Hon`ble President Smt. Pratibha
Devisingh Patil in a grand function organized at Vigyan Bhawan, New Delhi.
Our Bank has also received an award shields/prizes meant for Banks and
Financial Institutions by Reserve Bank of India under the `Reserve Bank of
India Governor Shield Competition` for the best Implementation of Official
Language in Linguistic Region `A` and `B`.
Further, in this year our Bank has been awarded for the best performance in
implementation of Official Language Policy in Maharashtra by Maharashtra
State Level Bankers Committee and in Gujrat by Gujrat State Level Bankers
During financial year, various Town Official Language Implementation
Committee (TOLIC) working under the Government of India, Ministry of Home
Affairs, Official Language Department have given in all 30 awards/prizes to
our various Regional Offices, Zonal Offices and Branches. Town Official
Language Implementation Committee, Bhopal and Town Official Language
Implementation Committee Raipur, for which our Bank is convener, have been
awarded by Government of India, Ministry of Home Affairs, Official Language
Committee of Parliamentary on Official Language inspected our Kalimpong
Branch and Kursiang Branch under Zonal Office, Kolkata and Manali Branch
under Zonal Office, Chandigarh in respects Implementation of Official
Language, this year. The efforts and steps for implementing Official
Language Policy by our Bank were very well appreciated.
Our Bank has also provided facilities to work in Hindi under Core Banking
Solutions. Our Bank is providing passbook, draft, fixed deposit receipts
and statements in Hindi to our customers on their demand. Our Bank sending
the SMS in Hindi as well as in 7 different regional languages to our
During this year, Bank has organized Rajbhasha Seminar in Bhopal, Delhi and
Mumbai in the month of August, September and October, 2011 respectively.
Besides this, three 2 days Special Seminar were arranged in Bhopal and
Mumbai for all our Rajbhasha Officers. Further, Special Rajbhasha Seminar
was organized for Rajbhasha Officers in Mumbai on 27th January, 2012.
Rajbhasha Department, Central Office has played an important role in
publishing our Bank`s `History Book` in Hindi. This book was released by
Dy. Governor, Shri Anand Sinha, Reserve Bank of India on 29th March, 2012
at the function organized at the Chandermukhi auditorium.
Some of the important points to be implemented during this financial year
are as under:
1. On-line submission of Quarterly Progress Report under web base
2. Extant facilities of printing the Passbook, Demand Draft, Fixed Deposit
Receipt and Statements in Hindi to be extended in most of the branches so
that maximum number of our customers can utilize this facility.
3. To win maximum prizes awarded by Rajbhasha Department, Ministry of Home
Affairs, Government of India and Reserve Bank of India.
4. To increase potentiality and enhancement in performance, training will
be imparted to all the Rajbhasha Officers.
During the year, under our corporate branding exercise through national and
regional newspapers in absolute terms, we have reached to a circulation of
2013.60 lacs with an expenditure of Rs. 819.56 lacs providing us a minimum
recall value of Rs. 0.40. For creating and enforcing brand equity among
executives and businessman, niche publications were used as a media of
communications time to time during the review yearly period ended March
Looking to our Centenary Year Corporate Publicity for creating continuous
awareness about our brand, services and products through Print, Electronic
and Outdoor Media has been carried out by the corporate office. During the
process, both budgeted and non-budgeted campaigns/ publicity were carried
out for achieving the marketing objective of the Bank. To increase the
visibility during Centenary year all our office premises have been
illuminated and we have taken prime hoarding sites for display of our
During the Centenary year different programmes were organized at all the
centres. Concluding programme was organized at New Delhi and Mumbai. The
programme held on 21.12.2011 at Delhi was graced by Shri Pranab Mukherjee,
Honourable Finance Minister, GOI, Shri Namo Narain Meena, MOS, GOI, Shri
D.K.Mittal (IAS), Secretary, Dept. of Financial Services, MOF, GOI . Our
History Book was released during this auspicious event. The programme held
in Mumbai on 26.12.2011 was graced by Chief Minister of Maharasthra, Shri
Prithviraj Chavan and during the event Unsung Heroes, Valued VIP customers
and Ex-Top Executives were felicitated.
During the year Bank has telecasted TVC showcasing a 100 years journey of
our Bank coinciding with the progress of the nation. This TVC has created
buzz in the market. It was liked by every viewer. We have telecasted
following TVCs during the year:
> Three products viz. Cent Home, Cent Vehicle, Cent Jewel
> TVC on Centenary Year - Bank`s Corporate film 45 seconds
> CMD`s Speech on Radio on 21st Dec. 2011
> Vignette of our Bank on TV on 26th Dec. 2011 We have our presence on
> www.legalera.in - for providing information on legal matters
> www.eaclubdelhi.in - information of various things in and around Delhi
Our branding efforts during the year has shown a marked progress in its
brand performance in Brand Finance`s Top 500 Global Financial Brands, Bank
has moved up from its ranking of 390 in 2011 to 329 in 2012, a jump of 61
places in overall ranking
During the period 2011-12, Bank worked to bring further improvement in all
spheres of activities with remarkable degree of success, like Vigilance
cases as also complaints have been disposed off much faster, invocation of
regulation 20.3 [iii] of Officers` Service Regulations has been lowest
ever, etc. Further, Vigilance Officers and Dealing Officers have been
trained in CBS environment for effective and expeditious handling of
As a new initiative, Fraud Prevention Committees have been formed at Zonal
level to discuss the specific issues of frauds with effective measures to
tackle the lacunae in the system. The Committee comprises of Zonal Manager,
Regional Managers and one Branch Manager each of rural, semi urban and
urban/metro branches. Also facility for viewing the large value
transactions including those of staff members at the Branches is now
provided to controlling offices.
During the Vigilance Awareness Week, with an aim to curb the malpractices,
the department has initiated a new portal on our web to facilitate
reporting malpractices by our employees without revealing their identities
which would be known to the Chief Vigilance Officer only. This portal in
the name of "Cent Vigil" was inaugurated by Shri J M Garg, Vigilance
Commissioner, Central Vigilance Commission on 24th November 2011.
To ensure reporting of the fraud cases to Reserve Bank of India within
stipulated period, now submission of report [FMR-l] has been made online
from July 2011 resulting in almost no delay in our reporting to RBI on this
count, during the year 2011-12.
In an effort to boost the morale of field functionaries, the employees who
have exhibited exemplary courage in prevention of frauds/recovery of fraud
amount, have been felicitated at the hands of the Vigilance Commissioner,
CVC and the CMD during Vigilance Awareness Week in November 2011.
HUMAN RESOURCE DEVELOPMENT
At the end of March 2012, the staff strength of the Bank stood at 35901
(including PTSK) as against 34,015 in the previous year. The category-wise
break-up of staff is given below:
Category March 2012 March 2011
Officers 12375 12883
Clerks 15167 12770
Sub-staff 8359 8362
Grand Total 35901 34015
2. HUMAN RESOURCES DEVELOPMENT
I. Awards Conferred in Appreciation of `Best HR Practices Institutionalized
by the Bank:
> Our CMD has been conferred with an Award - `CEO WITH HR ORIENTATION`, a
prestigious leadership Award in recognition of his outstanding contribution
to Human Resources Development, Leadership and Capability building, in the
conference of World HRD Congress.
> In recognition of the Bank`s initiative in evolving and rolling out
excellent and innovative, HR practices across the Organization, Bank has
been conferred 2 Organizational Awards viz. STAR NEWS HR & Leadership Award
for HR Excellence for INNOVATIVE HR PRACTICES & SHINE.COM, HINDUSTAN TIMES
HR Leadership Award for Leading HR Practices in Quality Work-Life, Physical
& Mental Well-Being.
II. Introduction of New Performance Appraisal Formats:
New formats of Performance Appraisal have been introduced as suggested by
Government of India, to bring uniformity in the Annual Performance
Appraisal Reports for officers at all levels in Public Sector Banks.
Accordingly, the revised formats are applicable for appraising the
Performance of officers for the Financial Year 2011-12 and onwards.
III. Career Path-cum- Promotion Policy for Mainstream & Specialist Category
The new Promotion Policy for Mainstream & Specialist Category Officers has
been formulated with the approval of the Board after incorporating the
Government of India guidelines dated 5.12.2011. The revised Promotion
Policy shall be applicable w.e.f 31.01.2012. These provisions have been
further amended as per the further guidelines received from Government of
India vide its communication dated 14.03.2012.
IV. Amendments in Norms for Transfer of Officers in Scale I, II & III:
During the period under review having regard to growing aspiration of
officers, certain officer-friendly changes have been made in existing
provisions of the Transfer Norms for officers. These changes have injected
new rejuvenation among officers and the same were greatly lauded by all
V. Launching of a web-portal christened - `Cent-Samadhan`:
Bank has launched a web-portal christened - `CENT-SAMADHAN` for seeking
redressal of individual grievances by staff members. The grievances
received through this portal will receive the attention of CMD/ED. The
above initiative has been taken with a genuine intention of quick
resolution of employee`s individual grievances and to create an environment
of confidence, transparency amongst the staff so as to benefit them as well
the Institution in terms of productivity & performance.
VI. Incentive scheme for Sub-ordinate staff who improve their Educational
qualifications after joining the Bank:
In order to encourage and motivate the sub-ordinate staff members to
improve their educational qualifications after joining the Bank, an
Incentive Scheme has been evolved by the management. Incentives are
available under the scheme for passing SSC (Xth Standard/Matriculation)
and/or HSC (10+2) from any State/Central Board and/or Graduation in any
discipline from any approved University recognized by UGC. Incentives
comprise of -reimbursement of examination fee in full, payment of
honorarium and Letter of Appreciation.
VII. `HR Excellence Award` to felicitate Regional Managers who excel in
implementing HR practices:
In order to raise awareness of the necessity for implanting the HR Policies
& Practices which are being rolled out by Corporate Office and also to
assess the state of implementation of the same by Regions/Zones, a Scheme
with the name and style - `HR Excellence Award` to felicitate Regional
Managers who excel in implementing HR Practices, has since been launched.
VIII. Introduction of Sabbatical leave to women employees to meet their
special problems during their career.
Sabbatical leave to women employees has been introduced in our bank w.e.f.
1.4.2012 to meet their special problems during their career on the lines of
broad guidelines received from Government of India vide its communication
IX. Benefits/facilities extended to employees:
Enhancement in quantum of House Building Advance, Additional Housing loan,
Rent reimbursement etc., were brought about to motivate the employees to do
the best for the institution.
Quality training is the cornerstone for building healthy succession and to
nurture a sound managerial team. Accordingly, during the year 2011-12
`Training & Development` function continued to be given major thrust. With
this backdrop and in furtherance to the constant endeavour to transform the
Bank as a `Learning Organisation`, vibrant changes are brought about in the
entire gamut of the training activity encompassing training modules,
contents and delivery systems etc.
During the year 2011-12, in order to increase the horizons of knowledge of
our executives/senior level officers so as to enhance the intellectual
capital of the bank, the interactive sessions and Mind mapping sessions
with Dr. Pritam Singh & Mrs. Asha Bhandarkar, eminent management
professionals of International repute, were conducted wherein the rich
experiences were shared and contemporary business areas discussed and
deliberated. Special training programmes were conducted exclusively by
outside experts/agencies of high repute on Distribution of Mutual Fund,
Management Development Programme, Sensitization of Junior Level Officers on
Customer Service etc., Further, internal training programmes were conducted
on RSETI, Financial Inclusion, Hand on experience on Syndicate ASBA,
Programme for Newly Promoted Chief Managers etc. In order to familiarize
with various bank functioning, Clerical Staff appointed during 201112 were
imparted extensive training programme. During the year 2011-12 around 884
classroom training programmes were conducted covering more than 14766
participants and 92206 man-days by three Training Colleges and nine Zonal
Training Centers. In the year 2011-12, 54 officers have been sent for
overseas training/exposure/ visit. This apart, officers in various scales
were sent for specialized programmes conducted by external training
agencies like NIBM, CAB, BIRD, FEDAI, IDBRT, IIBM etc. During the year
2011-12, 9 pre-promotion programmes for officers were conducted covering
104 SC and 48 ST candidates.
4. RECRUITMENT & PROMOTIONS:
In order to inject required professionalism in the Institution, process of
inducting MBAs in various fields continued during the Financial Year 2011-
12 as well and accordingly, 6 fresh MBAs in Scale-I, 98 in Scale II & 7 in
Scale-III have been recruited through campus mode from the
Professional/Management institutions like NIIM, IIFT, Wellingkar Institute,
VIT,etc besides the regular recruitment processes in respect of Specialists
and Mainstream posts. In order to ensure a good blend of experience and
contemporary knowledge/skills, the system of campus recruitment of MBAs
will be continued in future as well.
In the year 2011-12, recruitment process was held for 4219 posts
encompassing MBAs in Scale-I, II & III, Engineers, Librarian, Security
Officers (all in Scale-II), Chief Dealer (Scale V), Asst. General Manager
(IT), Clerical Staff, Drivers and Armed Guards (Sub-staff cadre).
The promotional exercise has been made more motivating and as such as a
corporate goal, it has been resolved to hold the promotion processes as
frequently as possible for all scales/categories. Accordingly, during the
year 2011-12 inter-scale and inter-cadre promotion processes were conducted
and as many as 3028 employees/officers were elevated to higher cadre/
scale, out of which 743 sub-staff were promoted to clerical cadre. All
PTSKs (around 2500) have been elevated as `Safai-Karmachari-cum-substaff`
in full time.
5. IMPLEMENTATION OF RESERVATION POLICY:
The Bank has been implementing the guidelines/instructions received from
Government of India/Indian Banks` Association on Reservation Policy and
concessions and relaxations are extended to SCs/STs/OBCs/PWDs/Ex-servicemen
as admissible in the Reservation Policy. The Parliamentary Committee under
the Chairmanship of Shri. Gobinda Chandra Naskar visited at Diu from
15.11.2011 to 17.11.2011 to examine the representation of Schedule Castes
and Scheduled Tribes in our Bank. Further, Shri Raju Parmar, Honorable
Member of National Commission for Schedule Castes had 5 meetings with our
Bank at different places to undertake study of implementation of
Reservation Policy in our Bank.
6. BUSINESS MEETINGS WITH REPRESENTATIVES OF UNIONS / ASSOCIATIONS:
During the year under review, exclusive meeting was held on 12th September
2011 & 23rd February 2012 at Corporate Office level with major
Unions/Associations to discuss solely on the strategies of business
development. The Management expressed that it should be endeavour of all
employees to improve the business status of the bank and exhorted the
unions to prevail upon their members to give their best to the institution.
7. STAFF WELFARE SCHEMES:
`Welfare of Staff and their families` continues to be the committed
endeavour of the management and this endeavour is always kept on the top of
the HR agenda of the Bank. Accordingly, during the year, an amount of Rs.15
crore has been apportioned for expending towards various Staff Welfare
Schemes and the schemes have been thoroughly improved upon both in terms of
ceilings and coverage.
8. INDUSTRIAL RELATIONS:
The Industrial Relations during the year remained very cordial.
SUBSIDIARIES AND JOINT VENTURES
CENTBANK HOME FINANCE LIMITED
The Net Profit of the Company stood at Rs. 5.72 crore as at March 2012, as
against the level of Rs. 9.36 crore as of March 2011. The main reason for
decrease in profit is on account of increase in cost of funds borrowed i.e.
hike in Base Rate of funds lent by Central Bank of India and overall
increase in establishment and other expenses. The loan outstanding
increased from Rs. 282.13 crore as on March 2011 to Rs. 290.30 crore as on
The Company has consistently improved its Net Own Fund by adding Profit to
the Reserves. Net worth has gone up from Rs. 55.21 crore in March 2011 to
Rs. 57.44 crore in March 2012. Deposits from public and institutions have
increased from Rs. 48.03 crore as on March 2011 to Rs. 48.34 crore as on
CENTBANK FINANCIAL SERVICES
Centbank Financial Services Limited is essentially providing ancillary
corporate financial services. During the year 2011-12, CFSL has
significantly diversified its business profile to make CFSL a full-service
investment bank. CFSL services include:
> Project Appraisal and Loan Syndication
> Capital market Transactions(both equity and debt)
> Corporate Advisory Services including M&As and Debt Restructuring,
Project Advisory, Securitization, Risk Management, Business Valuations,
Private Equity and TEV Report
> Trusteeship Services including debenture/security Trustee, Executor
Trustee, Managing Charitable Trusts
> The company earned a Net Profit of Rs. 9.30 crore as of March 2012
against Net Profit of Rs. 7.24 crore in the previous year.
INDO-ZAMBIA BANK LTD.
The Bank`s Joint Venture in Zambia is promoted jointly by Government of
Zambia and three India Banks viz. Central Bank of India, Bank of Baroda and
Bank of India. While each of the 3 Indian Banks hold 20% equity, Govt. of
Republic of Zambia holds the balance 40% equity. The Bank has been
performing well in all parameters. While the total business of the bank
stood at Rs. 1552.70 crore. As on 31st March 2012, the Bank earned a Net
Profit of Rs. 36.14 crore.
REGIONAL RURAL BANKs (RRBs)
Bank has 7 sponsored RRBs as on 31.03.2012 covering 57 districts with a
network of 1806 branches. The cumulative performance of all the 7 RRBs
under major parameters as on 31.03.2012 is as under:
A. Branch Expansion: During the year 2011-12, the RRBs have opened 46 new
branches raising the total number of branches from 1760 as on 31.03.2011 to
1806 branches. All RRBs are on CBS platform and are also providing NEFT
facility to customers.
B. Deposits: The deposits of RRBs increased from Rs. 15844 crore as on
31.03.2011 to Rs. 17793 crore as on 31.03.2012, registering a growth of
C. Advances: The advances of RRBs have increased from Rs. 7709 crore as on
31.03.2011 to Rs. 8867 crore as on 31.03.2012 showing a y-o-y growth of
D. Profitability: The RRBs have earned profit of Rs. 177.15 crore during
the year 2011-12 against the previous year`s profit of Rs. 146.58 crore
recording a y-o-y growth of 20.85%.
AWARDS & ACCOLADES
* Bank has been ranked 4th best Public Sector Bank in India under "Brand
Equity-Top 100 most trusted Brands 2011" and ranked at 16th position in
2011 under "India`s Most Trusted Service Brands" category as per survey
conducted by Economic Times.
* Bank won Indira Gandhi Rajbhasha Award for successful implementation of
Official Language Policy at the hands of President Smt. Pratibha Devi Singh
* Bank has received the prestigious "Golden Peacock Award 2011" instituted
by Institute of Directors (IODs) under innovative product/service category
for retail product "Cent Sahyog" for MSME segment.
* Bank has been awarded as "Best BFSI Company" by Business & Economy
* Bank was awarded with Exemplary Brand Leader Award for projecting
excellent Brand image in the country by Indra Group of Institute, Pune.
* Bank was conferred 2 Awards for `Best HR Strategies` & `Innovation in
Employee Retention Strategies` by Greentech Foundation, New Delhi.
For and on behalf of the Board of Directors
Place: Mumbai Mohan V Tanksale
Date : May 24, 2012 Chairman & Managing Director