Your Directors have pleasure in presenting the 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, 2013.
1. PERFORMANCE HIGHLIGHTS
Total Business of the Bank increased by Rs. 55374 crore to Rs. 402272 crore from
Rs. 346898 crore in previous year, registering y-o-y growth of 15.96 per cent.
Total Deposits increased by Rs. 29865 crore to Rs. 226038 crore, registering
y-o-y growth of 15.22 per cent.
Gross Advance of the Bank grew by Rs. 25509 crore to Rs. 176234 crore,
registering y-o-y growth of 16.92 per cent.
Operating Profit increased to Rs. 3173 crore from Rs. 2815 crore in FY 2011-12,
registering y-o-y growth of 12.72 per cent.
Net Profit stood at Rs. 1015 crore in 2012-13 as against Rs. 533 crore in FY
2011-12, registering y-o-y of 90.43 per cent.
Capital Adequacy Ratio (as per Basel-II) stood at 11.49 per cent as against
12.40 per cent in previous year.
Net worth increased to Rs. 13443.12 crore from Rs. 10550.44 crore.
Gross NPA of the Bank increased by Rs. 1183 crore to Rs. 8456 crore from Rs.
7273 crore in previous year. In percentage term Gross NPA reduced to 4.80 per cent in FY
2012-13 from 4.83 per cent in last year.
Net NPA increased to Rs. 4988 crore from Rs. 4557 crore in previous year. Net
NPA percentage decreased to 2.90 per cent from 3.10 per cent in previous year.
Provision Coverage Ratio (PCR) increased to 47.75 per cent from 40.62 per cent
in March 2012.
Net Interest Margin (NIM) reduced to 2.65 per cent from 2.78 per cent in FY
Average Business per Employee increased to Rs. 973 lakh from Rs. 862 lakh in
Net Profit per Employee increased to Rs. 2.83 lakh from Rs. 1.51 lakh in March
Return on Assets (ROA) improved to 0.44 per cent from 0.26 per cent in March
Credit to Priority Sector increased to Rs. 51252 crore from Rs. 40259 crore in
previous year, recording y-o-y growth of 27.31 per cent.
Agriculture Advance of the Bank increased to Rs. 24660 crore from Rs. 18848
crore in FY 2011-12 registering y-o-y growth of 30.84 per cent.
Under the micro credit & other (credit upto Rs. 50,000 per borrower), Bank
has extended credit of Rs. 233 crore.
Advances to Micro & Small Enterprises (MSE) increased to Rs. 17289 crore
during the year under review from Rs. 13161 crore in previous year.
During the year 13957 new Self Help Groups (SHGs) were formed, out of which
12397 SHGs have been credit-linked.
Under the Government Sponsored Programmes, Bank has provided assistance to 15047
SGSY beneficiaries, 11384 SJSRY beneficiaries & 1302 PMEGP borrowers during the year
Bank has extended loan of Rs. 15521 crore to the borrowers belonging to the
weaker section of the society.
Education Loan grew by 19.01 per cent during the year and the total loan reached
to Rs. 2567 crore.
Bank has established 46 Rural Self Employment and Training Institute (RSETI)
At the beginning of the year, the Bank had 7 sponsored Regional Rural Banks
(RRBs) covering 57 Districts in 7 states with a network of 1806 Branches, out of which 2
RRBs were merged with other RRBs and 2 RRBs sponsored by other Banks merged with our
Central Madhya Pradesh Gramin Bank. As on 31.03.2013, we had 5 RRBs spread over 54
districts in 5 states with network of 1799 branches.
Bank was allotted 3728 villages with population above 2000. Bank has covered all
these villages with 116 Branches and 3612 BC Agents. Bank has opened all its 3612 Ultra
The corporate credit of the Bank increased to Rs. 120328 crore from Rs. 98960
crore in previous year registering y-o-y growth of 21.59%.
The retail credit grew by 31.30% from Rs. 16915 crore in FY 2011-12 to Rs. 22209
crore in FY 2012-13.
"Cent Combo" - A Combination of Home Loan & Vehicle Loan at
attractive Rates and at affordable EMIs and Hassle Free Loan Sanction Process was
introduced with lowest EMI of Rs. 896/- per Lakh for Home Loans upto 30 years and lowest
EMI of Rs. 1673/- per Lakh for Vehicle Loans upto 84 months. The scheme has been designed
keeping the corporate sector employees in view.
During the year 2012-13, Bank has earned commission of Rs. 15.23 crore in life
insurance and Rs. 9.02 crore in non-life insurance business.
All 77 Regions have been declared as BIMA Region and 835 branches as BIMA Banks
As on 31st March 2013, Bank has a network of 4294 branches across the
country. During the year 283 branches have been opened, which includes 13 extension
counters converted to full-fledged branches.
Bank has installed 2529 ATMs till 31st March 2013.
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 2012-13 are given hereunder:
Rs. in crore
|1 INTEREST INCOME
|2 OTHER INCOME
|(Profit on Sale of Investments)
|3 TOTAL INCOME (1+2)
|4 INTEREST EXPENDED
|5 OPERATING EXPENSES
|6 TOTAL EXPENSES (4+5)
|7 SPREAD (1-4)
|8 OPERATING PROFIT (3-6)
|10 PROVISIONS FOR TAX
|11 NET PROFIT
Interest Income grew by 14.16 per cent during the year
Interest expenses on Deposits increased by 14.96 % to Rs. 14940 crore in March
2013 from Rs. 12996 crore in previous year.
Expenses on employees increased by Rs. 385 crore during the year to Rs. 2891
crore from Rs. 2506 crore in previous year, due to provisioning requirement of Rs. 100
crore for expected Wage settlement.
Details of Total Provisions of Rs. 2158 crore charged to the Profit and Loss Account
during the year 2012-13 vis-a-vis previous year are detailed as under:
(Rs. in crore)
|Provisions for Standard Assets
|Provisions for NPAs
|Depreciation/Provision on Investments
|Provisions for Taxes
4. PROFITABILITY RATIO
|Cost of Deposits
|Cost of Funds
|Yield on Advances
|Yield on Investments
|Net Interest Margin
|Cost Income Ratio
Cost of Deposits increased from 7.20 per cent in 2012 to 7.42 per cent in 2013.
The yield on advances was 11.14 per cent in 2012-13 and yield on investments was
7.60 per cent against 7.53 per cent in 2011-12.
Net Interest Margin reduced to 2.65 per cent from 2.78 per cent in previous
Cost to Income Ratio increased from 57.11 per cent in 2012 to 57.16 per cent in
the year under review.
5. BANKING RATIOS
|Interest Income to Average Working Fund (AWF)
|Non-Interest Income to AWF
|Operating Profit to AWF
|Return on Average Assets
|Business Per Employee in lakh)
|Net Profit per Employee in lakh)
6. CAPITAL TO RISK WEIGHTED ASSETS RATIO (CRAR)
The components of Capital Adequacy Ratio were as under:
|Risk Weighted Assets(Rs. in crore)
|Capital Funds (in percentage)
|Capital Adequacy Ratio
7. NET PROFIT & DIVIDEND
The Bank earned Net Profit of Rs. 1015 crore for the financial year 2012-13. The Board
of Directors are pleased to recommend a dividend @ 25 per cent on the Equity Share Capital
i.e. Rs. 2.50/- 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 Malay Mukherjee was appointed as Executive Director of the Bank w.e.f
05.11.2012 in place of Smt V.R.Iyer who ceased as Executive Director on 05.11.2012.
Shri R.K.Goyal was appointed as Executive Director of the Bank w.e.f 11.01.2013
in place of Shri R.K.Dubey who ceased as Executive Director on 11.01.2013.
Shri Brijlal Kshatriya ceased to be the Shareholders` Director w.e.f 20.03.2013.
Shri Romesh Sabharwal and Major (Retd) Ved Prakash, Part Time Non-Official
Directors ceased to be the Directors of the bank w.e.f 06.10.2012 and 20.10.2012
respectively consequent upon expiry of their tenures.
Shri M.P.Shorawala and Shri Krishan Sethi were appointed as Part Time
Non-Official Directors of the Bank w.e.f 03.01.2013 and 28.02.2013 respectively.
Shri B.S.Rambabu ceased to be the Workmen Employee Director of the Bank w.e.f
The Board places on record its appreciation of valuable contribution extended by
Smt.V.R.Iyer, Shri R.K. Dubey, Shri Brijlal Kshatriya, Shri Romesh Sabharwal, Major (Retd)
Ved Prakash and Shri B.S. Rambabu who ceased to be the directors of the Bank during
Financial Year 2012-13.
9. DIRECTORS` RESPONSIBILTY STATEMENT
The Directors confirm that in the preparation of the annual accounts for the year ended
March 31, 2013;
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 31,2013;
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
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
The Board of Directors places on record its gratitude to the Government of India,
Reserve Bank of India and the Security 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 31, 2013
||Chairman & Managing Director