1 Analysts Meet PERFORMANCE HIGHLIGHTS for the Financial Year ended 31st MARCH, 2014 Analysts Meet: 08/05/2014
INDEX Sl. No. Slide Details Slide No. 1 Financial Highlights Quarterly 3 2 Interest Analysis Quarterly 4 3 Other Income Quarterly 5 4 Operating Expenses Quarterly 6 5 Provisions & Contingencies Quarterly 7 6 Financial Highlights (Yearly) 8 7 Interest Analysis, Other Income (Yearly) 9-10 8 Operating Expenses, Provisions & Contingencies (Yearly) 11-12 9 Global & Domestic Business, High Cost Deposits (DRI+COD) 13-14 10 CASA Deposits, Advances (Domestic) 15-16 11 Priority Sector Credit, Retail Credit Components & Gold Loan Portfolio 17-19 12 Power, Telecom, Avaiation, Roads & Ports, NBFC 20 13 Restructured Advances 21-23 14 Non Performing Assets (NPA) 24-26 15 Overseas Branch Performance 27-28 16 Investment Portfolio 29-30 17 Performance Indicators (Quarterly/Yearly) 31-32 18 Yield and Cost (%), Cost to Income and Employee Cost (%) 33-34 19 Net Interest Margin (NIM) 35 20 Capital Adequacy (Basel II & Basel III) (%) 36-37 21 Branch Network 38 22 Equity Holdings 39 23 Awards & Accolades 40 24 New Initiatives 41-42 25 Looking Ahead 43-46 2
Financial Highlights (Quarterly) 3 March, Dec., March, 2014 Q4-o-Q4 Growth (%) Q4-o-Q3 Growth (%) Interest Income 4,381 4,719 4,896 12 4 Interest Expended 3,037 3,360 3,463 14 3 Net Interest Income (NII) 1,344 1,359 1,433 7 5 Other Income 399 292 462 16 58 Operating Expenses 842 845 897 7 6 Operating Profit 901 806 998 11 24 Provisions 423 426 589 39 38 Profit Before MAT Credit 478 380 409 (14) 8 MAT Credit 114 - - (100) - Net Profit 592 380 409 (31) 8 3
Interest Analysis (Quarterly) 4 March, As on (Rs. in Crs.) December, March, 2014 Q4-o-Q4 Variation (%) Q4-o-Q3 Variation (%) Interest Income on Advances 3,465 3,658 3,712 7 1 Interest Income on Investments 831 951 1,041 25 9 Interest on IT Refund 0 19 91-379 Interest on Call Money Lending / Repo 85 91 52 (39) (43) TOTAL INTEREST INCOME 4,381 4,719 4,896 12 4 Interest Paid on Deposits 2,793 3,104 3,167 13 Interest paid on RBI / Inter Bank Deposits 19 24 27 42 Other Interest Expenditure TOTAL INTEREST EXPENDITURE Net Interest Income (NII) 225 232 269 20 3,037 3,360 3,463 14 1,344 1,359 1,433 7 5 2 13 16 3
Other Income (Quarterly) March, Quarterly (Rs. in Crs.) December, March, 2014 Q4-o-Q4 Growth (%) Q4-o-Q3 Growth (%) Commission & Brokerage 162 125 196 21 57 Commission on Govt. Business 10 8 8 (20) - Sub Total 172 133 204 19 53 Net Profit from FX Transactions 19 43 18 (5) (58) Dividend Earned - 1 1 - - Recovery in w/o A/c.s 63 28 107 70 282 Miscellaneous Income 103 60 94 (9) 57 Total (Excl. Trading Profit) 357 265 424 19 60 Net Profit on Sale of Investment 42 27 38 (10) 41 GRAND TOTAL 399 292 462 16 58 5
Operating Expenses (Quarterly) March, (Rs. in Crs.) December, March, 2014 Q4-o-Q4 Growth (%) Q4-o-Q3 Growth (%) 6 Staff Expenses Rent, Taxes & Lighting Printing & Stationary Advertisement & Publicity Depreciation on Fixed Assets Auditors Fees Law Charges Postage, Telephone etc. Repairs & Maintenance Insurance & Guarantee Fee Other Expenditure TOTAL 579 577 616 6 7 46 53 60 30 13 11 4 7 (36) 75 10 7 13 30 86 30 28 34 13 21 3 5 5 67-2 3 2 - (33) 9 10 18 100 80 19 15 20 5 33 34 35 35 3-100 108 87 (13) (19) 843 845 897 6 6
7 Provisions & Contingencies (Quarterly) Q4-o-Q4 Growth (%) Q4-o-Q3 Growth (%) March, Dec., March, 2014 Tax 47 22 (48) (202) (318) MAT Credit (114) - - - - Deferred Tax Asset 10 (55) 5 (50) (109) NPA 160 22 330 170 - Bad Debts - 7 20-186 Standard Assets 107 53 (2) (102) (104) Restructured Assets (Standard) - - - - - Diminution in Fair Value - 118 (80) - (168) FITL - 139 220-58 Depreciation on Investments (14) 26 41 (393) 58 Staff Welfare Expenses 5 5 5 - - Leave Encashment 45 16 29 (36) 81 Wage Arrears 66 60 60 (9) - Others (3) 13 9 (400) (31) TOTAL 309 426 589 91 38
Financial Highlights (Yearly) 8 (Rs. in Crs.) Y-o-Y Growth March, March, 2014 Amount % Interest Income 17,121 18,620 1,499 9 Interest Expended 11,667 13,080 1,413 12 Net Interest Income (NII) 5,454 5,540 86 2 Other Income 1,174 1,325 151 13 Operating Expenses 3,179 3,302 123 4 Operating Profit 3,449 3,563 114 3 Provisions 2,019 1,852 (167) (8) Profit Before MAT Credit 1,430 1,711 281 20 MAT Credit 574 0 (574) (100) Net Profit 2,004 1,711 (293) (15)
Interest Analysis (Yearly) 9 March, March, 2014 Y-o-Y Growth Amount % Interest Income on Advances 13,525 14,420 895 7 Interest Income on 3,231 3,781 Investments 550 17 Interest on Call Money 287 295 Lending / Repo 8 3 Interest on IT Refund 78 124 46 59 TOTAL INTEREST INCOME 17,121 18,620 1,499 9 Interest Paid on Deposits 10,753 12,077 1,324 12 Interest paid on RBI / Inter Bank Deposits 76 85 9 12 Other Interest Expenditure 838 918 80 10 TOTAL INTEREST EXPENDITURE 11,667 13,080 1,413 12 Net Interest Income (NII) 5,454 5,540 86 2
Other Income (Yearly) As on (Rs. in Crs.) Y-o-Y Growth March, March, 2014 Amount (%) 10 Commission & Brokerage 513 536 23 4 Commission on Govt. Business 34 31 (3) (9) Sub Total 547 567 20 4 Net Profit from FX Transactions 81 98 17 21 Dividend Earned 6 7 1 17 Recovery in w/o A/c.s 150 214 64 43 Miscellaneous Income 265 281 16 6 Total (Excl. Trading Profit) 1,049 1,167 118 11 Net Profit on Sale of Investment 125 158 33 26 GRAND TOTAL 1,174 1,325 151 13
Operating Expenses (Yearly) 11 As on (Rs. in Crs.) March, March, 2014 Y-o-Y Growth Amount (%) Staff Expenses 2,179 2,229 50 2 Rent, Taxes & Lighting 190 216 26 14 Printing & Stationary 22 18 (4) (18) Advertisement & Publicity 20 26 6 30 Depreciation on Fixed Assets 101 118 17 17 Auditors Fees 20 25 5 25 Law Charges 7 8 1 14 Postage, Telephone etc. 33 48 15 45 Repairs & Maintenance 75 79 4 5 Insurance & Guarantee Fee 138 119 (19) (14) Other Expenditure 394 416 22 6 TOTAL 3,179 3,302 123 4
Provisions & Contingencies (Yearly) 12 March, March, 2014 Tax 364 74 MAT Credit (574) - Deferred Tax Asset (231) (143) NPA 1,135 990 Bad Debts 48 35 Standard Assets 256 33 Restructured Assets (Standard) 181 271 Depreciation on Investments (7) 203 Staff Welfare Expenses 20 20 Leave Encashment 81 97 Wage Arrears 100 240 Others 72 31 TOTAL 1,445 1,851
GLOBAL & DOMESTIC BUSINESS 13 As At Growth March, March, 2014 Amt. % December, (9M) Global Business Global Deposits Global Advances Domestic Business Domestic Deposits Domestic Advances CASA Deposits Current Deposits 3,34,779 3,88,584 1,85,356 2,12,343 1,49,423 1,76,241 2,91,337 3,30,701 1,67,055 1,86,966 1,24,282 1,43,735 51,954 55,998 13,937 13,968 53,805 26,987 26,818 39,364 19,911 19,453 4,044 31 16 3,52,498 15 1,95,120 18 1,57,378 14 2,94,504 12 1,69,769 16 1,24,735 8 52,371 0 12,661 Savings Bank 38,017 42,030 4,013 11 39,710 Bulk Deposits (DRI+COD) 29,715 27,819 (1,896) (6) 24,181 of which DRI Deposits 18,457 19,318 861 5 19,538
High Cost Deposits (DRI + COD) March, December, March, 2014 DRI Deposit 18,457 19,538 19,317 14 DRI Deposit to Domestic Deposits (%) 11.05 11.51 10.33 CODs 11,258 4,643 8,502 CODs to Domestic Deposits (%) 6.74 2.73 4.55 Total Bulk Deposits 29,715 24,181 27,819 Bulk Deposits to Domestic Deposits (%) 17.79 14.24 14.88
CASA Deposits - Domestic 15 Mar., CASA 51,926 CASA 31.08% Dec., (9M) CASA 52,324 CASA 30.82% Mar., 2014 CASA 55,911 CASA 29.90%
Domestic Advances 16 Y-o-Y Growth December, March, March, 2014 Amount (%) (9M) Domestic Advances (Gross) 1,24,283 1,43,735 19,452 16 1,24,735 Retail Credit 19,620 20,926 (16%) (15%) 1,306 7 20,530 MSE Credit 15,074 18,697 (12%) (13%) 3,623 24 17,174 Agriculture Credit 20,156 22,071 (16%) (15%) 1,915 10 19,825 Credit to Weaker Section 11,918 12,758 (10%) (9%) 840 7 12,641 MSME Credit 16,428 19,800 (13%) (14%) 3,372 21 18,591 Priority Sector Advances 46,437 52,016 (37%) (36%) 5,579 12 47,883 Corporates 41,798 50,993 (34%) (35%) 9,195 22 37,731 % age expressed on Gross Domestic Advances
Priority Sector Credit 17 March, March, 2014 Priority Sector Advances 46,437 52,016 Y-o-Y Growth Amount % % age to ANBC Level Mandatory Requirement (%) December, (9M) 40.00 5,579 12 43.19 47,883 Agriculture 20,156 22,071 10 18.33 18.00 1,915 19,825 - Direct Agriculture 16,018 18,807 17 15.62 17,228 2,789 - Indirect Agriculture 4,138 3,264 (874) (21) 2.71 2,597 Micro & Small Enterprises 15,074 18,697 3,623 24 15.52 17,174 Other Priority Sector 26,281 29,945 3,664 14 24.86 28,058 Advances to Weaker Section 11,918 12,758 840 7 10.59 10.00 12,641 Advances to Minority 7,601 8,308 707 9 15.97 * 15.00 * 7,690 Advances to Women 8,245 8,981 736 9 7.46 5.00 8,525 ANBC Level 1,04,067 1,20,433 * as % age to Priority Sector Advance 16,366 16 100.00 1,20,433
Retail Credit Components 18 Housing Loans Education Loans Vehicle Loans Personal Loans March, March, 2014 Advance % to Gr. Adv. Advance % to Gr. Adv. Y-o-Y Growth Amt. % December, (9M) 8,924 6 9,714 6 790 9 9,445 2,556 2 2,768 2 212 8 2,729 1,176 1 1,447 1 271 23 1,360 4,353 3 4,404 2 51 1 4,357 Gold Loans - Non Priority 1,473 1 1,589 1 116 8 1,651 Mortgage Loans Others Total Retail Credit 969 1 910 1 (59) (6) 875 169 0 93 0 (76) (45) 113 19,620 13 20,925 12 1,305 7 20,530
GOLD LOAN PORTFOLIO 19 March, March, 2014 Growth (%) Gold Loan - Priority 4,798 6,287 31 Agriculture (Crop) 3,009 3,850 28 Agriculture (Non Crop) 550 863 57 SyndSwarna 1,239 1,574 27 Gold Loan - Non Priority 1,473 1,589 8 SyndSwarna Express 1,473 1,589 8 Total Gold Loan 6,271 7,876 26
Power, Telecom, Aviation, Roads & Ports, NBFC March, Power 12,191 (8.16%) - State Owned 8,949 (5.99%) - Generation & 3,855 Transmission (2.58%) - DISCOMs 5,094 (3.41%) - Private Owned 3,242 (2.17%) - Generation & 2,541 Transmission (1.70%) - DISCOMs 701 (0.47%) Roads & Ports 1,480 (0.99%) NBFC 20,806 (13.92%) Aviation 908 (0.61%) Telecom 2,439 (1.63%) % age expressed on Gross Total Advances December, 12,101 (7.69%) 8,757 (5.56%) 4,656 (2.96%) 4,101 (2.61%) 3,344 (2.12%) 2,213 (1.41%) 1,131 (0.72%) 1,746 (1.11%) 21,890 (13.91%) 925 (0.59%) 2,888 (1.84%) March, 2014 12,813 (7.27%) 8,864 (5.03%) 5,143 (2.92%) 3,721 (2.11%) 3,949 (2.24%) 2,689 (1.53%) 1,260 (0.71%) 2,302 (1.31%) 26,054 (14.78%) 1,002 (0.57%) 2,827 (1.60%) Y-o-Y Variation % 12M-o-9M Variation % 5 6 (1) 1 33 10 (27) (9) 22 18 6 22 80 11 56 32 25 19 10 8 16 (2) 20
Restructured Advances 21 CDR FY Ended Mar., Dec., (9M) FY Ended Mar., 2014 No.: of Accounts 26 31 35 Amount () 2,543 3,250 3,801 Non - CDR FY Ended Mar., Dec., (9M) FY Ended Mar., 2014 No.: of Accounts 1,39,512 1,31,040 1,24,645 Amount () 6,582 6,901 7,335 TOTAL FY Ended Mar., Dec., (9M) FY Ended Mar., 2014 No.: of Accounts 1,39,538 1,31,071 1,24,680 Amount () 9,125 10,151 11,136
Restructured Accounts (including CDR) As On 31-03- 31-03-2014 Corporate 3,056 3,701 Agriculture 1,798 1,735 Aviation 846 729 MSME 467 597 Power - DISCOM 2,344 3,278 - Others 208 332 Retail 42 44 Others 365 720 TOTAL 9,126 11,136 22
23 Advances Restructured during Quarter and Year Restructured Advances Mar., Quarterly Yearly Dec., (9M) Mar., 2014 Mar., Mar., 2014 993 1,094 5,647 2,920 1,600
Non Performing Assets (NPA) 24 (Absolute) [Rs. in Crs.] March, December, (9M) March, 2014 Gross NPA 2,979 4,401 4,611 Net NPA 1,125 2,567 2,721 Provision Coverage Ratio (%) 83.41 70.39 70.02 March, December, (9M) March, 2014 Gross NPA (%) 1.99 2.80 2.62 Net NPA (%) 0.76 1.66 1.56
NPA Movement (Quarterly) 25 Movement () Mar., Dec., Mar., 2014 A. Gross NPA at the beginning (A) 3,160 4,472 4,401 B. Less: (i) Upgradation 477 406 364 (ii) Recoveries 260 204 243 (iii) Write Offs (incl. Prudential) 340 126 357 (iv) Decrease due to operation / foreign exchange fluctuation 10 26 23 Total (B) 1,087 762 987 Balance (C) = (A-B) 2,073 3,710 3,414 Add: Fresh NPA (D) 906 691 1,197 Gross NPA at the end (C+D+E) 2,979 4,401 4,611
NPA Movement (Yearly) 26 Movement as on () Mar., Mar., 2014 A. Gross NPA at the beginning (A) 3,183 2,979 B. Less: (i) Upgradation 301 147 (ii) Recoveries 730 805 (iii) Write Offs (incl. Prudential) 1,297 1,024 (iv) Decrease due to operation / foreign exchange fluctuation 18 20 Total (B) 2,346 1996 Balance (C) = (A-B) 837 93 Add: Fresh NPA (D) 2,142 3,628 Gross NPA at the end (C+D+E) 2,979 4,611
Overseas Branch Performance 27 March, March, 2014 Growth (%) Dec., (9M) Business 43,442 57,884 33 57,994 Advances 25,141 32,506 29 32,643 Deposits 18,301 25,378 39 25,351 Gross NPA 163 347 113 295 Net NPA 122 260 113 219 Gross NPA (%) 0.65 1.07 0.91 Net NPA (%) 0.49 0.80 0.67
Overseas Branch Performance ( Cont d) Mar., Quarterly Dec., Mar., 2014 Yearly Mar., Mar., 2014 Net Interest Income (10) 23 24 68 99 Operating Profit 4 24 30 108 103 Net Profit 22 27 22 85 44 Yield on Advances (%) 2.45 2.48 2.44 3.00 2.40 Cost of Deposits (%) 1.64 1.41 1.39 1.88 1.34 Yield on Funds (%) 2.50 2.39 2.33 2.96 2.36 Cost of Funds (%) 2.69 2.11 2.03 2.60 2.03 Return on Assets (%) 0.40 0.34 0.27 0.45 0.14 NIM (%) (0.19) 0.30 0.31 0.37 0.34 28
Investment Portfolio (Gross - Global) 29 60000 50000 45,694 51,849 46,945 48,314 55,774 40,185 40000 30000 20000 10000 5,509 4,904 7,460 0 Mar-13 Dec-13 Mar-14 Non SLR SLR Total
Investment Category - Global Composition as on Category March, December, March, (9M) 2014 HTM 37,533 38,797 38,018 30 % to Investment 82.14 74.83 68.16 AFS 7,879 13,052 17,756 % to Investment 17.24 25.17 31.84 HFT 282-0 % to Investment 0.62 0.00 0.00 Gross Investment 45,694 51,849 55,774 Deprn. & Provision for NPI 46 195 235 Net Investment 45,648 51,654 55,539
PERFORMANCE INDICATORS (Quarterly) 31 March, Dec., March, 2014 (%) (%) (%) Return on Assets 1.19 0.68 0.70 Yield on Advances 10.04 9.74 9.65 Cost of Deposits 6.56 6.66 6.55 Yield on Investments 7.73 7.68 7.99 Return on Equity 26.93 14.87 16.08 Business Per Employee (Rs. Crs.) 12.57 12.81 14.30 Profit Per Employee (Rs. Lakhs) 9.58 5.95 6.53 CD Ratio 80.61 80.66 83.00
PERFORMANCE INDICATORS (Yearly) 32 March, March, Dec., 2014 (%) (%) (9M) (%) Return on Assets 1.07 0.78 0.81 Yield on Advances 10.51 9.59 9.69 Cost of Deposits 6.83 6.56 6.59 Yield on Investments 7.75 7.87 7.82 Return on Equity 22.78 16.81 17.00 Business Per Employee (Rs. Crs.) 12.57 14.30 12.81 Profit Per Employee (Rs. Lakhs) 8.11 6.83 6.80 CD Ratio 80.61 83.00 80.66
YIELD & COST (%) 33 Yield on Funds Mar., 2014 6.00 Mar., 9.18 Dec., 8.58 Cost of Funds Mar., 2014 8.53 Mar., 6.25 Dec., 6.01 Mar., 2.93 Spread Dec., 2.57 Mar., 2014 2.53
Cost to Income & Employee Cost (%) 34 Mar., 32.88 Mar., 47.96 Dec., 48.39 Mar., 2014 48.10 Mar., 2014 32.46 Dec., 32.44 Cost to Income (%) Employee Cost (%)
Net Interest Margin (NIM %) 35 Mar., Quarter Mar., 2014 Mar., Yearly Mar., 2014 Dec., (9M) Global 2.97 2.79 3.19 2.79 2.82 Domestic 3.41 3.23 3.52 3.21 3.25 Overseas (0.19) 0.31 0.37 0.34 0.35
Capital Adequacy (Basel II) March, Dec., March, 2014 Net Worth 9,296 10,451 10,393 Risk Weighted Assets 112,060 119,090 127,090 Total Capital Funds 14,103 13,751 15,267 Tier I Capital 10,040 9,893 11,423 Tier II Capital 4,063 3,858 3,844 36 Capital Adequacy Ratio (CRAR) (%) March, Dec., March, 2014 CRAR (%) 12.59 11.55 12.01 Tier I 8.96 8.31 8.99 Tier II 3.63 3.24 3.02
Capital Adequacy (Basel III) (%) 37 June, Sep., Dec., Mar., 2014 CRAR 11.49 11.58 11.26 11.41 Core Tier I 7.85 7.99 7.79 8.29 Additional Tier I 0.29 0.32 0.28 0.39 Tier I Capital 8.14 8.31 8.07 8.68 Tier II Capital 3.35 3.27 3.19 2.73
38 BRANCH NETWORK Domestic Branches 3250 ATMs 1946 Channels Overseas Branch 1 Satellite Offices 52 107 Branches opened during Q4. 317 Branches opened during the year 31/03/ 31/03/2014 613 658 Extension Counters 14 Ultra Small Branches 949 Mobile Banking : 24,781 customers Internet Banking : 7,97,436 customers SMS Enabled : 10,50,955 customers 903 Rural 788 629 Semi-Urban 704 856 1032 Urban Metro
EQUITY HOLDINGS 39 Govt. of India 67.39% as on 31-03-2014 Earnings Per Share (Rs.) 28.21 Book Value Per Share (Rs.) 189.63 Return on Equity (%) 16.81 No. of Shares (in Crs.) 62.46 Share Capital (Rs. Crs.) 624.58 Others 10.81% FIIs 6.56% Bodies Corporate 2.03% Mutual Fund & UTI 0.17% Insurance Cos. 12.84% Banks & FIs 0.20% Top Holdings Govt. of India 67.39% LIC of India 9.52% HDFC Standard Life Insurance Company Limited 2.77%
Awards & Accolades 40 Our Bank has been adjudged as SECOND BEST PSU BANK under PSU category by Financial Express India s Best Banks Survey 2012 13. Bank has been awarded Banking Excellence Award for the second best public Bank in overall performance by State forum of Bankers Club Kerala. Bank has been conferred Best Bank Award amongst all the Banks in the RSETI movement by Sri Jairam Ramesh, Hon ble Minister for Rural Development, Government of India.
NEW INITIATIVES 41 Credit Monitoring is stepped up and overdues are monitored on daily basis by the separate vertical created. Bigger accounts showing overdues are triggered for immediate follow up. All the branches have been sensitized on the latest guidelines issued by RBI on revitalization of Stressed accounts monitoring. Workshops have been held for all controlling offices and all branch heads and dealing staff will be trained immediately on these guidelines. Bank continues to focus on SMEs, small scale industries and mid Corporates and identified around 30 centres for setting up specialized Mid Corporate Branches. Bank is also in the process of setting up SME processing centres in various clusters. The Bank has restructured the marketing set-up with effect from 01.04.2014 for utilizing all the CRMs & Marketing Officers exclusively for tapping Government Business, accelerating retail business growth, augmenting fee based income and promoting alternate delivery channels.
NEW INITIATIVES ( Cont d) 42 Bank is geared to generate all the MIS from the system only enabling the front line staff to concentrate on customer service and marketing. Bank has clocked the highest number of Health Insurance Policies in a day: 10000 Health Policies with a premium of Rs.2.00 crore, creating a record in the history of Bankassurance in India. Bank continues to contribute to CSR activities- sponsoring chairs in educational institutions, donating ambulance for medical services, vans for carrying food to school children, donation to orphanage, destitute Home and society for physically challenged, pond cleaning in FI villages. Bank also arranged blood donation camps by staff and customers at all controlling offices of the bank commemorating foundation day of the bank. Bank also sponsored a social and cultural event, Nasik festival which brought lot of visibility to the bank and publicity to our Bank products.
Looking Ahead 43 Bank is planning to recruit around 5000 new staff comprising 2700 officers and 2300 clerical in 2014-15. Of this, around 750 will be specialised officers. Bank is planning to open more number of bigger training centres at Delhi and Mumbai immediately and at different parts of the country. As a stop gap training at external institutes is also on. Under HR there is a plan to identify 100 executives as Future Leaders and train them vigorously for the next 1 year so that they are groomed to take future assignments and higher responsibilities with confidence. Bank has taken steps for new initiatives- Business Process Reengineering and Human Resource Management System which will increase operational efficiency of the Bank, and enabling the Bank to put more staff on marketing front.
Looking ahead ( Cont d) 44 Bank proposes to open about 400 branches Pan India which include specialized branches like Mid Corporate, MSME branches, to give focused attention to target group borrowers. Bank is also taking steps to open branches in South Africa, Dubai Financial Centre, Hong Kong, Thailand and China. Bank is opening 5 more new Regions namely Ludhiana, Salem, Shimoga, Varanasi and Visakhapatnam shortly and going forward, contemplating to open Second Region in Gujarat, One more region in Telangana, Second Region in Rayalaseema (Andhra Pradesh). One more region in Tamil Nadu. New Products: Bank has introduced a new deposit product christened as SyndDisha -II for a special 444 days tenure with an interest rate of 9.00% pa. for a limited period upto 31.05.2014. Senior citizens will get an additional interest of 0.50% pa. This product is applicable for deposits of less than Rs 10 crore only. Introduced SyndMarble, Doctor, Textile, Cashew and Transport to meet the specific credit needs of the target groups and same will be popularized during the current year.
Looking ahead ( Cont d) 45 Alternate Delivery Channels: Bank is giving lot of importance to these and proposes to install 4100 ATMs and popularise internet and mobile banking for customers. E- Lounges (24X7) self serviced kiosk will be opened in 20 important locations and Back Office for Centralised Account Opening shall be opened in 2 locations. Capital Planning: Based on projected internal accruals, at present Bank is comfortable in complying with CRAR as per Basel III guidelines. However, in order to maintain CRAR of 12% the Bank proposes to raise Equity Capital by way of Rights Issue/QIP (Domestic/Foreign)/ Follow on public issue based on market conditions and approach the market for Basel III compliant Additional Tier 1 Bonds and Tier 2 Bonds in the future. MTN Issue: Board has approved the Bank to raise the funds through Medium Term Notes (MTN) in overseas market for funds requirements of London branch upto USD 2 billion as and when the interest rates are favorable and based on the Loan book building of London branch. Bank has procured Govt. Business Module (GBM) covering PPF, Senior Citizen Savings Schemes (SCSS), RBI Relief Bonds, OLTAS, EASIEST, Collection of State Tax for various States etc. It is expected to be implemented shortly.
Looking ahead ( Cont d) 46 Bank is in the process of upgrading to a new higher version of Internet Banking Solution. The new version will be compatible in all Browsers (like Chrome, Firefox, opera, Safari) apart from Internet Explorer. SyndNayiDisha: Bank has drawn its long term plan Vision 2020 for reaching business level of Rs.10 lakh crore. Bank has revisited its Vision and Mission Statements along with lot of initiatives are being taken to reach vision 2020 goals. Bank has brought all these initiatives under SyndNayiDisha as given below.
Looking ahead ( Cont d) 47 Bank has adopted new Corporate Theme IGNITE for the Financial year 2014-15 I Invoke Passion to be the best Bank among PSBs for 2014-15. G N I T E Garner new business, sourcing new clients with increased share of CASA through good customer service. NPA level to be reduced with increased recoveries and with containment of SMAs through effective monitoring. Institutionalise best business practices, systems & controls, reducing weak areas in working. Turnaround time to come down and credit to agriculture, MSME & Retail to expand substantially. Expand business through leveraging technology and enhance brand image and market share.
Thank You... 48