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1
NOTICE
STATE BANK OF BIKANER & JAIPURHead Office, Tilak Marg, 'C'-Scheme,
Jaipur-302 005
NOTICE is hereby given that the Fifty-second Annual General Meeting of the Shareholders of State Bank of Bikaner and Jaipur will be held in the Maharana Pratap Auditorium, Bharatiya Vidya Bhavan, K. M. Munshi Marg, Opp. O.T.S., Jaipur - 302015 on Friday, the 7th June, 2013 at 11.30 A.M. (Indian Standard Time) to discuss and adopt the Balance Sheet and Profit & Loss Account of the Bank, the report of the Board of Directors on the working and activities of the Bank and the Auditors' Report on the Balance Sheet and Accounts for the period 1st April, 2012 to 31st March, 2013.
The register of shareholders of the Bank shall remain closed from Friday, the 31st May, 2013 to Thursday, the 6th June, 2013 (both days inclusive) for the purpose of Annual General Meeting for the year ended 31st March,
2013.
By Order of the Board
Delhi B. Sriram
Dated: 06th May, 2013 Managing Director
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CONTENTS
Highlights 03
04
Board of Directors 04
Directors' Report 07
II
Basel-II Disclosures 79
Auditors' Report 117
Balance Sheet 120
Profit & Loss Account 122
Schedules 124
Principal Accounting Policies 137
Notes on Accounts 151
A Decade of Progress 2004-2013`
(`in Crore)
Indicators
Capital &
Reserves
Total
Business
Operating
Profit
Net Profit
No. of
Branch-
es
Average
Business per
Employee
`Net Profit per
Employee
(`In lakh )
March 2004 1148.57 25457 681.35 301.52 812 1.70 2.44
March 2005 1297.68 31294 729.64 205.65 824 2.20 1.69
March 2006 1405.66 37790 481.03@ 145.03 832 2.77 1.20
March 2007 1653.71 49246 679.20@ 305.80 844 3.56 2.57
March 2008 1713.21 59427 661.18@ 315.00 850 4.45 2.73
March 2009 2046.47 69312 892.84@ 403.45 860 5.55 3.55
March 2010 2417.40 81622 903.73@ 455.16 861 6.28 3.96
March 2011 2850.81 95596 1140.25@ 550.88 902 7.51 4.84
March 2012 4164.88 111558 1489.61@ 652.03 950 8.27 5.42
March 2013 4764.13 130590 1712.87@ 730.24 1037 9.00 5.91
@
Keeping in view revised RBI guidelines on valuation of investments.
3
HIGHLIGHTS`
(`in Crore)
2011-12 2012-13
Total Business including inter-bank deposits 111558 130590
Deposits 61572 72116
Total Advances 49986 58474
Advances (Net) 49244 57535
Investments (Net) 16669 20146
Net Profit 652.03 730.24
Cost of Deposits 6.85% 7.13%
Yield on Advances 11.51% 11.64%
Net Interest Margin 3.70% 3.62%
Paid-up Capital & Reserves 4164.88 4764.13
` Earning per Share (in `) 95.05 104.32
` Book Value per Share ( in `) 594.98 678.74
Capital Adequacy Ratio
12.81% 11.81%
13.76% 12.16%
Dividend Rate 145% 161%
Gross Non Performing Assets 1651.47 2119.49
Gross NPA % 3.30% 3.62%
Net NPA % 1.92% 2.27%
Advances to Priority Sectors 17690 20807
Advances to Agriculture 9032 9188
Advances to Micro and Small Enterprises 6478 8127
Export Finance 1931 2334
Total number of branches 950 1037
Number of Employees 12866 12831
Average Business per Employee 8.27 9.00
` Net Profit per Employee (` in lakh) 5.42 5.91
I As per Basel-I
II As per Basel-II
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BOARD OF DIRECTORS (AS ON 31st March, 2013)
Shri Pratip Chaudhuri ChairmanState Bank of India, Corporate CentreMadame Cama Road, Mumbai-400021
Chairman, ex-officio under clause (a) of sub-section (1) of section 25 of the State Bank of India (Subsidiary Banks) Act, 1959.
Shri B. Sriram Managing Director State Bank of Bikaner and JaipurHead Office, Tilak MargJaipur - 302 005
Nominated under clause (aa) of sub-section (1) of section 25 of the Act.
Smt Malvika Sinha Chief General Manager,Deptt of Non-Banking Supervision, Issue Deptt and Foreign Exchange Deptt, Reserve Bank of India, New Delhi
Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.
Shri Rajeev N. Mehra Chief General Manager (A & S)State Bank of India, Corporate Centre, Mumbai-400021
Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.
Shri Pradip Kumar Sanyal Dy. General Manager (A&S)Associate Banks DepartmentState Bank of IndiaCorporate Centre, Mumbai-400021
Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.
Shri Rajesh T. Manubarwala 9, Amijadav Bunglows, Near Hotel Ashish, ABC Chokdi,Bharuch -392001
Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.
Shri Bharat Rattan B. Rattan & Associates,Shop No. 408-409, Mahak Tower, Kailash Cinema Road, Civil Lines Ludhiana-141001
Nominated by the Reserve Bank of India under clause (b) of sub-section (1) of section 25 of the Act.
Shri Arun K Saraf Managing Director,, Juniper Hotels Pvt Ltd., Grand Hyatt Mumbai, Santacruz,MUMBAI-400005
Elected director under clause (d) of sub-section (1) of section 25 of the Act.
Shri Kunal Dalmia Lindsay Tower, 9th Floor,13, Nelisen Gupta Sarnee,Kolkata-700087
Elected director under clause (d) of sub-section (1) of section 25 of the Act
Shri Mihir Kumar Director, Govt. of India, Ministry of Finance, Deptt. of Financial Services (Banking Division), 3rd Floor, Jeevan Deep Bldg., Parliament Street, New Delhi.-110001
Nominated by the Central Government under clause (e) of sub- section (1) of section 25 of the Act.
Shri Sunil Dutt Bali Muskan, 4/83, Vidhyadhar Nagar,Jaipur
Nominated by the Central Government under clause (cb) of sub-section (1) of section 25 read with sub section (2A) of section 26 of the Act.
Shri D.K. Jain, S. W. O. State Bank of Bikaner & Jaipur, Z. O., Patel circle, Udaipur-313001
Nominated by the Central Government under clause (ca) of sub- section (1) of section 25 read with sub- section (2A) of section 26 of the Act.
5
BOARD OF DIRECTORS (AS ON 31st March, 2013)
Shri B. SriramManaging Director
Shri Pratip ChaudhuriChairman
Shri Rajeev N Mehra
Shri Pradip Kumar Sanyal Shri Mihir KumarSmt. Malvika Sinha
Shri Kunal DalmiaShri Bharat RattanShri Rajesh T. Manubarwala
Shri D.K. JainShri Arun K. Saraf Shri S.D.Bali
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REPORT OF THE BOARD OF DIRECTORS TO THE STATE BANK OF INDIA,
THE RESERVE BANK OF INDIA AND THE GOVERNMENT OF INDIA
IN TERMS OF SECTION 43(1) OF THE STATE BANK OF INDIA
(SUBSIDIARY BANKS) ACT 1959
PERIOD COVERED BY THE REPORT: 1ST APRIL 2012 TO 31ST MARCH 2013
The Board of Directors of State Bank of Bikaner and Jaipur have pleasure in presenting this Annual Report together with the audited Balance Sheet and Profit and Loss Account of the Bank for the year ended 31st March 2013.
MANAGEMENT DISCUSSION AND
ANALYSIS
ECONOMIC ENVIRONMENT
WORLD ECONOMY
Global economic prospects have improved but the road to recovery in the advanced economies will remain bumpy. In advanced economies, activity is expected to gradually accelerate, starting in the second half of 2013. Over the past six months, advanced economy policymakers have successfully defused two of the biggest short-term threats to the global recovery, the threat of a euro area breakup and a sharp fiscal contraction in the United States caused by a plunge off the “fiscal cliff.” In response, financial markets have rallied on a broad front. Growth in several emerging and developing economies (EDEs) rebounded from the moderation. Among BRICS countries growth accelerated in Brazil and South Africa, while it persisted below trend in China, Russia and India. Inflation has remained benign in the Advanced Economies in the absence of demand pressures and inflation expressions remain well anchored. The inflation in EDEs present a mixed picture. While inflation has picked up in Brazil, Russia and Turkey, it has eased in China,
Korea, Thailand and Chile.
INDIAN ECONOMY
Central Statistical Organisation's (CSOs) advance estimate of 5.0 per cent GDP growth during financial year 2012-13 is lower than the Reserve Bank's base line projections of 5.5 per cent set out in the Third Quarter Review of January, 2013 reflecting slower than expected growth in both industry and services. During 2013-14 economic activity is expected to show modest improvement over last year. The out look for industrial activity remains subdued, with the pipeline of new investment drying up and existing projects stalled by bottlenecks and implementation gaps. The RBI has projected baseline GDP growth for financial year 2013-14 at 5.7 per cent.
By March, 2013, WPI inflation at 6.0 per cent turned out to be lower than the Reserve Banks of India's indicative projection of 6.8 per cent mainly due to sharp decline in non-food manufactured product inflation in the second half of the year. Keeping in view the domestic demand - supply balance, the outlook for global commodity prices and the forecasting a normal monsoon, RBI expects WPI inflation to be in range band around 5.5 per cent during 2013-14.
RAJASTHAN ECONOMY
Rajasthan's economy is primarily agricultural and pastoral. The problem of famine and drought is deeply related with the economy of Rajasthan. According to the population of 2001 about 80% of the population lives in rural areas therefore agriculturist tribes
On-line Inauguration of 1000th Branch of the
Bank at Sambhar by Hon'ble Union Finance
Minister, Govt. of India Sh. P. Chidambaram
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Bank Donated Rs. 2 crore towards Rajasthan
Chief Minister's Relief Fund for Relief
Measures
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are the biggest sufferers in time of
famine and drought. Rajasthan is the
leading investment destination in India
after Maharashtra and Gujarat because
of peaceful environment, better law and
order situation, excellent infrastructure,
investment friendly climate and very
less population density. Areas facing
NCR such as Bhiwadi are now buzzing
with automobile and manufacturing
companies. Rajasthan is pre-eminent
in quarrying and mining in India. The
state is the second largest source of
cement. It has rich salt deposits at
Sambhar, copper mines at Khetri and
zinc mines at Dariba and Zawar.
Endowed with natural beauty and a
great history, tourism is flourishing
in Rajasthan. The palaces of Jaipur,
lakes of Udaipur and desert forts of
Jodhpur, Bikaner & Jaisalmer are
among the most preferred destination
of many tourists, Indian and foreign. A
spin-off of tourism has been the growth
of the handicrafts industry. Tourism
provides a big boost to the economy
of Rajasthan. Recently HPCL signs a
MoU with Rajasthan Government for
9MMTPA Refinery-cum-Petrochemical
Complex at Barmer in Rajsthan.
DEVELOPMENTS IN THE FINANCIAL SECTOR
The year 2012-13 witnessed a sharp
decline in the advances growth of
scheduled commercial banks (SCBs)
while deposit growth also subdued.
The year-on-year aggregate deposits
and advances growth of SCBs stood
at 13.2% and 13.9% respectively as at
end-March 2013, compared to 17.4%
and 19.3% respectively during the
previous year.
Growth slowdown, persistent inflation
and the twin deficit risks came to the
fore during 2012-13 and enervated
the Indian economy endangering the
reversal of its declining growth path.
Amidst trade-offs, monetary policy
factored in increased growth risks
and shifted its stance to calibrated
easing to address the growth slow
down as headline inflation gradually
moderated. The Government also
launched concerted policy action and
reforms during H2 of 2012-13. These
reforms, with fuller implementation,
are expected to arrest the downward
spiral and kick in the modest recovery
in 2013-14. Some of the important
policy developments:
Interest subvention of 1 per cent
on housing loans extended to
loans upto `15 lakh, where cost
of the house does not exceed to
`25 lakh.
Small individual investors will
get no-frills demat accounts for
trading in stocks, mutual funds
and other securities without any
annual maintenance charges for
holdings up to `50000. Also, the
charges would be capped at a
maximum of `100 a year if the
portfolio value is up to `2 lakh.
RBI released the final guidelines
for Indian Banks on BASEL-III.
Banks will have to comply with
these norms between April, 2013
and March, 2018.
RBI has notified Banks to
obliterate the foreclosure charges
(prepayment charges) on floating
rate home loans. This will lead
to reduction in the discrimination
between existing and new
borrower; and competition among
banks will result in finer pricing of
floating rate home loan.
The central role in financial
inclusion has to be played by
banks. They need to focus on
transactions in accounts opened
under financial inclusion. Only
banks can offer the entire suite
of products required to usher in
meaningful financial inclusion.
RBI has allowed Banks to establish
outlet for BCs in rural centres to
boost the Government's financial
inclusion programme.
RBI has advised all Banks to
allow their customers to use the
National Electronic Funds Transfer
(NEFT) facility for repaying loans.
The borrowing limit of Scheduled
Commercial Banks (SCBs) under
the Marginal Standing Facility
(MSF) raised from 1% to 2%
of their Net Demand and Time
Liabilities.
Interest Subvention scheme
for short-term crop loan to be
continued.
Companies investing `100 crore
or more in plant and machinery
during the period 01.04.2013
to 31.03.2015 will be entitled to
deduct an investment allowance
of 15% of the investment.
Guidelines regarding financial
restructuring of DISCOMS
have been announced. State
Government urged to prepare the
financial restructuring plan, quickly
sign MoU and take advantage of
the scheme.
Additional deduction of interest up
to `1.00 lac for a person taking
first home loan up to `25.00 lac
during period 01.04.2013 to
31.03.2014.
All Branches of Public Sector
Banks to have ATM by
31.03.2014.
Proposal to set up India's first
women's Bank as a Public Sector
Bank.
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OPPORTUNITIES, CHALLENGES AND OUTLOOK
The Union Budget 2013-14 has
projected the GDP Growth for
2013-14 at 8% which expected to
boost the demand for credit and
other services from the banking
system. The Cabinet Committee on
Investment (CCI) has been set up to
over come the slow progress of big
projects. The fiscal deficit for the year
2012-13 contained at 5.2% and
for the year 2013-14 estimated at
4.8%.
The foremost challenges before the
Bank continues to be improving
its market share both in the State
of Rajasthan and on an all-India
basis with emphasis on maintaining
asset quality, utilizing advanced
technology for increase in business
and profitability, improving risk
management systems, increasing net
interest margin, increasing non-fund
based business sizably and achieving
further improvement in the customer
service by adopting best Corporate
Governance practices.
CORPORATE OPERATIONS
BUSINESS PERFORMANCE
The overall business of the Bank
(deposits plus gross advances)
reached a level of
`130590 crore as at
end-March 2013 as
against `111558 core
as at end-March 2012,
recording a growth
of `19032 crore
(17.06%). The total
deposits increased by
`10544 crore (17.12%)
to reach a level of
`72116 crore while
advances increased by
`8489 crore (16.98%)
to reach a level of
`58474 crore by end-
March 2013. The cost of deposits of
the Bank increased from 6.85% in
2011-12 to 7.13% in 2012-13, while
yield on advances improved from
11.51% to 11.64%.
TREASURY AND INVESTMENTS
During the current financial year, growth has slowed and inflation remained above the Reserve Bank’s comfort level. Monetary Policy has responded to this evolving growth-inflation dynamics through calibrated
easing. The Reserve Bank front-loaded a reduction in its repo rate by 50 bps in April 2012. Even as elevated inflation and the twin deficits have severely restricted the space for further easing of the policy rate since April 2012, subsequent measures were directed towards ensuring adequate liquidity to facilitate a turnaround in credit deployment to productive sectors for supporting growth. As part of liquidity management measures, the CRR was reduced in two stages by 50 bps in a pre-emptive manner to ease monetary and liquidity conditions. Also, the statutory liquidity ratio (SLR) of scheduled commercial banks (SCBs) was reduced to improve the credit conditions. Further more, apart from supplying liquidity through daily liquidity adjustment facility (LAF), the Reserve Bank made active use of the auctions under outright open market operations (OMOs) and injected primary liquidity
of about 1.3 trillion. The judicious use of the two sets of instruments, i.e., keeping the policy rate unchanged from April to December and proactive liquidity easing measures conferred dual benefits that were evident as inflation gradually declined from its
A Spinning Unit financed by the Bank
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peak and credit off-take showed signs of improvements during most of November and December 2012. Inflation, however, continues to remain above the Reserve Bank’s comfort level.
In the 'Third Quarter Review of Monetary Policy 2012-13', Repo rate was slashed by 25 basis points at 7.75% against 8.00% earlier, and Cash Reserve Ratio (CRR) of scheduled banks was also reduced by 25 basis points from 4.25% to 4.0% of their net demand and time liabilities (NDTL). Continuing with this RBI again cut the Repo Rate by 25 basis point in March, 2013, bringing the Repo rate down to 7.50%.
The yield on the 10 year Benchmark security eased to 8.12% from 8.74% during the period April to July, however August saw the yield firming up again as a result of cut in SLR requirements. From September onwards on the back of the reform measures announced by the Government and subsequent cut in the repo and frequent OMOs announced by the RBI, the 10 year benchmark yield eased further and touched a low of 7.78%. This gave us the opportunity to book profit in GSec.
Equity market during the first quarter of the year was in red mainly on the issues like GAAR & S&P’s negative outlook on India and increasing worry on Eurozone. However the market remained largely in the green territory during the second and third quarter as a result of various reform measures taken by the government and continued FII inflows. During the last quarter the market plunged again as GDP growth failed to pickup and recorded a dismal 4.5% growth in the third quarter. The negative sentiment accentuated further as the Union Budget for FY 2014 presented in the Parliament failed to support the sentiment, though Finance minister stuck to the fiscal deficit targets and provided measures on social infrastructures. The Budget fell short of any big ticket, policy oriented
thrust to boost growth. The sentiment remained bearish on account of Eurozone concern. During the year Bank invested in IPOs/OFSs of companies with proven record/sound fundamentals and also undertook trading in the secondary market to maximize returns.
The Bank’s net investment increased from `16669 crore as on 31st March 2012 to `20146 crore as on 31st March 2013. The yield on investments, excluding profits, improved from 7.48% in 2011-12 to 7.64% in 2012-13. The yield on investment including profit improved from 7.67% to 8.04% during the same period.
FINANCIAL HIGHLIGHTS
NET INTEREST INCOME
The Bank's total interest income
increased from `6291.36 crore
during 2011-12 to `7498.19 crore
during 2012-13, recording a growth
of 19.18%. Interest expenditure
increased by 21.19% to `4932.38
crore, as against 4069.96 crore in the
previous year. The net interest income
recorded a growth of 15.50% to
`2565.81 crore, as against `2221.40
crore in 2011-12. The net interest
margin decreased from 3.70% for the
year ended March 2012 to 3.62% for
the year ended March 2013.
NON-INTEREST INCOME
The non-interest income of the Bank
has increased by 21.25% from
`598.97 crore in 2011-12 to `726.28
crore during 2012-13. The increase
during the year as compared to the last
year is mainly on account of increase
in profit on Forex turnover by `51.62
crore, profit on sale of investment by
`46.96 crore and recovery in Written-
off accounts by `22.21 crore.
OPERATING EXPENSES
The operating expenses recorded
a growth of 18.67% from `1330.76
crore in 2011-12 to `1579.22 crore
during 2012-13. Of this, employee
costs increased by 20.46% to 987.53
crore, while total other operating
expenditure increased by 15.80% to
`591.69 crore.
PROFIT
During 2012-13, the operating profit increased to 1712.87 crore, recording a growth of 14.99% as against `1489.61 crore in the previous year. The net profit recorded a growth of 11.99% from `652.03 crore in 2011-12 to `730.24 crore in 2012-13.
DIVIDEND
During the year 2012-13, the Bank declared an Interim Dividend of 161% i.e. `16.10/- per equity share (face value of share `10/- per share) which is 11.03% higher than dividend of 145% i.e. `14.50/- per share declared in the previous year. Record date for ascertainment of entitlement of shareholders for Interim Dividend was 29th March, 2013. Interim dividend may be treated as final dividend.
KEY FINANCIAL INDICATORS
The Return on Assets of the Bank stood at 0.96% during 2012-13 as against 0.99% in the previous year. The return on equity decreased to 15.33% as against 15.66% in the previous year. The earnings per share also increased from `95.05 in 2011-12 to `104.32 in 2012-13, while the book value per share improved from `594.98 in 2011-12 to `678.74
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A Hydroelectric Project Financed by the Bank
15
in 2012-13. As at end-March 2013, the capital adequacy ratio of the Bank stood at 11.81% and 12.16% as per Basel I and II norms respectively, as against 12.81% and 13.76% as per Basel I and II norms respectively, as at
end-March 2012. This was well above
the RBI benchmark of 9%. Due to
rise in NPAs on account of continued stress faced by the industrial sector coupled with agriculture NPAs, the Bank's Gross NPA ratio and Net NPA ratio increased from 3.30% and 1.92% respectively as at end-March 2012 to 3.62% and 2.27% respectively, as at end-March 2013. The average business per employee increased to `900 lakh during 2012-13, as against `827 lakh in the previous year. The net profit per employee improved to `5.91 lakh during 2012-13, compared to `5.42 lakh during 2011-12. The average business per branch increased to `112.42 crore during 2012-13, as against `104.73 crore in the previous year.
CREDIT MANAGEMENT
The overall credit demand remained subdued during the FY 2012-13, even though there were signs of economic recovery. However, the Bank continued to focus on qualitative credit growth and faster credit delivery. Total advances of the Bank grew by 16.98% during 2012-13, as against a growth of 19.77% during 2011-12.
The Bank’s Commercial & Institutional (C&I) segment advances (other than food credit) registered a growth of `4705 crore (16.47%), while non-C&I segment comprising personal, small business and agricultural advances increased by `3809 crore (17.76%) during 2012-13. The impetus of financing remained mainly towards infrastructure development, such as power and road, besides other sectors such as steel, textiles and non-banking finance companies.
In view of the prevailing competitive market scenario, closer interaction
and regular meetings by the Top Management with high value customers were held at major centers in the country.
PERSONAL BANKING
During 2012-13, personal segment business has crossed `50000 crores mark with `41752 crores of deposits and `9131 crores of advances. The retail deposits recorded an escalation of `6094 crores on the base level of `35658 crores which is a YoY growth of 17.09% while retail P segment advances grew by `1142 crores taking the retail advances portfolio to `9131 crores.
The Bank has launched one Incentive linked Deposit mobilization Campaign for the entire FY 2012-13, to counter the fierce market competition posed by private players, who are offering higher interest rates to customers post RBI's guidelines for deregulation of interest rate in SB deposits. Apart from this year long campaign, to broaden the customer base two more Campaigns to open SB accounts were also launched and in the process, Bank has crossed the land mark of having more than One crore SB accounts in its books. During the year we have opened a record number of 19.31 lakh new savings deposit accounts as against 11.36 lakh accounts during the previous year 2011-12. Year 2012 was also celebrated as "Golden Jubilee Year" by the Bank and to commemorate this memorable event a new 50 week (350 days) term deposit product named 'GOLDEN JUBILEE DEPOSIT PRODUCT' was also launched by offering higher rate
of interest to our esteemed patron customers.
Despite the gloomy economic scenario coupled with RBI’s tightening liquidity norms, the bank was able to sanction `3309 crores in 1.11 lakh new advances accounts as against last year's of `2805 crores under various loan schemes in the personal banking segment. This year bank has recorded a robust growth of 60.86% in disbursement of P segment car loans. During the fiscal 2012-13, with fresh sanctioning of 14531 car loans, the car loan portfolio grew by 43.53% over March 2012. Our unique innovative technology based initiative, 10 Minute On line sanction of Car Loan rolled out during the last financial year was also instrumental in pushing car loans apart from our launching campaigns during the festive seasons during the year entire fiscal year 2012-13 by extending concessions in interest rates and processing fee.
To keep in pace with the market trends and dynamics, we have reoriented and modified our existing loan schemes such as Home loan, Car loan, Gold Loan and Education loan schemes by readjusting Interest rates, Processing fee and eligibility norms. At the behest of Government Of India, for providing institutional funding for the students undergoing specialized skill development programs in recognized institutions one education loan scheme “Model Loan Scheme for Vocational Education and Training” was also launched,
The Bank at the behest of MOHRD, Government of India is continuing an Interest Subsidy Scheme for “Economically weaker section (EWS) on Education loan borrowers” and claimed `12.33 crore amount in 8714 beneficiaries accounts.
PRIORITY SECTOR LENDING
Priority Sector advances continued to remain the major thrust area of the
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Bank's business. As at end March 2013, the Bank's priority sector advances increased to a level of `20807 crore as against 17690 Crore in the previous year. This constituted 41.61% of the Adjusted Net Bank Credit, against the RBI benchmark of 40%. Priority Sector Advances in Rajasthan stood higher at 65.85% of Rajasthan's ANBC as on 31st March, 2013.
AGRICULTURE
Lending to agriculture remains one of the major thrust areas of the Bank. The flow of credit to agriculture increased from 6825 crore in 2011-12 to 8376 crore in 2012-13, recording a growth of 126%. The outstanding level of agriculture advances increased by 1.73% from `9032 crore as at the end of March, 2012 to `9188 crore as at end of March, 2013. Our Bank’s total direct agriculture lending is 89.81% amounting to `8252 crore, and has registered a growth of 13.94%. Due to change of priority sector guidelines a major portion of indirect Agriculture has been classified under MSME and this has impacted the overall growth in Agriculture Advance.
Agriculture credit constituted 18.38% of the Adjusted Net Bank Credit,
which was above the RBI benchmark of 18%. In the state of Rajasthan, the agricultural advances stood even higher at 34.87% of the Adjusted Net Bank Credit.
The Bank has issued 111911 Kisan Credit Cards (KCCs) with sanctioned amount of `2018.99 crore during the financial year, taking the total number of KCCs to 515520 as at end-March 2013. The bank issued 53615 new KCC with a growth of `951.68 in production credit, which constituted 11.61% growth of New KCC and amount wise growth of 19.58% after sale of `400 crore crop loans through IBPC. The Bank has added 189 new farmers per rural and semi-urban branch during the year.
In order to bring the farmers out of the clutches of the money lenders, the Bank introduced a Debt Swap Scheme in the year 2008. During 2012-13, assistance disbursed under the Debt Swap Scheme stood at `56.71 crore, benefiting 12118 farmers. The outstanding assistance under the scheme increased from `291.19 crore as at end-March 2012 to `320.44 crore as at end-March 2013. The number of beneficiaries under the Scheme also increased from 70377 in the previous year to 73583 farmers
in March 2013, recording a growth of 4.60%. By providing financial assistance under this scheme Bank has made the villagers of 42 villages completely free from the clutches of private money lenders.
FINANCIAL INCLUSION (FI)
Our Bank has embarked upon its journey to implement the FI initiatives in the unbanked service area villages through ICT enabled banking correspondent outlets. 794 business Correspondents have been engaged to cover 823 villages and brick and mortar branches have been opened in 6 villages to cover 829 villages with population of 2000 and above allocated to our Bank for providing banking services by 31.03.2012. In these villages 229652 accounts have been enrolled.
Now the concept of coverage under FIP has changed and as per new concept, a BC has to cover all the villages falling in a Gram Panchayat. We have 1878 Gram Panchayats in our Bank's service area in the state of Rajasthan. Out of these, in 369 Gram Panchayats our Brick and mortar branches are functioning and in 792 Gram Panchayats we have already engaged BCs/BCAs. The remaining 717 Gram Panchayats, will be covered by engaging CSCs as BCAs/ Individual BCs / BCAs of any other Corporate BC who can work on KIOSK model, developed by TCS for SBI Group.
Financial Literacy: Bank is actively involved in Govt. of India sponsored Swabhimaan campaign enlightening the rural populace about FI initiatives. Pamphlets, brochures detailing the advantages of Bank accounts are distributed in FI villages to educate the rural public about the Bank's FI initiatives. Our Bank has already set up Financial Literacy & Credit Counseling Centres (FLCCs) in all the nine Lead Districts to impart literacy among rural population. These FLCCs have conducted 304 literacy camps and counselled 38759 persons during
Hon'ble Union Rural Development Minister
Sh. Jairam Ramesh Awarding RSETI
Stakeholder Award to Bank
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FLCCs
FLCCs
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the year 2012-13. Apart from this, the Bank has also set up 8 R-SETIs to train the potential Small Entrepreneurs to start their own ventures / business / entrepreneur for self employment in rural areas. The 8 R-SETIs have so far trained 27616 rural unemployed youth for various trades i.e. electric work, tailoring computer repair etc. Out of 27616 trained persons, 14762 persons belong to BPL families
Aadhaar Project of UIDAI: UIDAI has been setup by the Government of India with a mandate to issue a unique identification number to all the residents in the country based on demographic and biometric data of the individual. UIDAI has entered into Partnership with the Govt. and other agencies including Banks leveraging their existing infrastructure. These agencies are called the Registrars of UIDAI. Our Bank has also signed an MoU with UIDAI on 22nd January 2011 and has become a registrar in this project. Our bank has undertaken Aadhaar enrollments through an enrollment agency in the state of Rajasthan. More than 24 lac Aadhaar enrollments have been done till 31.03.2013 and 17.40 lac Aadhaar numbers have been generated so far and thus SBBJ is no. one among all the Associate Banks. Our Bank has successfully implemented Aadhaar
based payment system (APBS/NACH) through National Payment Corporation of India (NPCI) gateway. Seeding of Aadhaar Number in CBS account is under progress.
MICRO, SMALL AND MEDIUM
ENTERPRISES (MSMEs)
Micro, Small and Medium Enterprises (MSME), the main growth driver of the Indian Economy, accounts for 35% of manufacturing sector output, 40% of India's exports and provides employment to more than 6 crore persons in 1.5 crore enterprises. Accordingly, the Bank has also been according high priority to this area.
The Bank has assisted 4473 new MSME units during the year 2012-13. In order to boost MSME advances, we have revised our existing loan schemes viz. financing against Ware House receipts, Transport Operator Loan Scheme, Marble Plus Loan Scheme, Construction Equipment Loan Scheme, SME Car Loan Scheme. We have also entered into MOUs with JCB India Ltd., Tata Motors Ltd & Ashok Leyland Ltd for booking fresh advances. We have reduced spread on our base rate for MSME advances twice during the year and our interest rates are now very competitive.
As at end-March 2013, the outstanding credit to Micro and Small enterprises has increased by 25.46% to reach a level of `8127.36 crore, as against `6477.96 crore as at end- March-2013.
The Bank has continued its thrust to provide collateral free loans to MSE units under the credit guarantee scheme of CGTMSE. During the year, Bank provided new collateral free loans under Credit Guarantee Scheme of CGTMSE to MSE units amounting to `78.85 crore.
LOAN TO WOMEN BENEFICIARIES
As at end-March, 2013, 2.05 lac accounts of financial assistance were provided to women under different schemes of the Bank with a total outstanding of `2732.85 crore exists.
ASSISTANCE TO MINORITY
COMMUNITIES, WEAKER SECTIONS
AND SCHEDULED CASTES / SCHEDULED
TRIBES
As at end-March 2013, assistance to minority communities stood at `1043.26 crore spread over 78776 accounts.
Financing to weaker sections stood at `8237.10 crore benefiting 8.32 lakh persons as at end-March 2013. The ratio of assistance to weaker sections as a percentage of Adjusted Net Bank Credit is 16.47% as at end-March 2013. This was above the benchmark of 10% prescribed by RBI.
The outstanding assistance towards Scheduled Castes (SCs) / Scheduled Tribes (STs) stood at `1966.78 crore in 202556 accounts under priority sector as on 31st March 2013
GOVERNMENT BUSINESS
The Bank conducts Government Business on behalf of State/Central Government departments through 490 authorized branches. Income Tax, Central Excise, Service Tax, Value added tax etc. are collected through
SBBJ Marathon Organized by the Bank at Jaipur
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physical challans and also through the electronic mode. The Bank has established a Centralized Pension Processing Centre (CPPC) which calculates as well as credits pension to the accounts of pensioners across all the branches. We also have an Online Treasury Branch for online payment of Salary of Rajasthan Govt. employees on behalf of the State Government and presently our Online Treasury Branch is processing about 9 lacs State Govt. transactions received through 18000 digitally signed files in a month. During 2012-13 commission income from Government business was `114 crore.
INTERNATIONAL BANKING
The Bank provides Foreign Exchange related services to exporters/ importers, other resident and non-resident customers through a network of 66 Authorized Category "B" and 184 category ‘C’ branches and 4 Trade Finance Central Processing Centres (TFCPC). Bank's forex dealing room at Mumbai and all the authorized category ‘B’ branches are equipped with latest technology for real-time communication and are connected through SWIFT network with more than 750 offices of foreign banks throughout the world. The Bank maintains 20 NOSTRO accounts in all major currencies and non-account correspondent banking relationship with all major banking groups in the world. To facilitate NRI customers for inward remittances, there is online remittance facility and tie-ups with 5 Gulf based Exchange Houses. Our 231 branches are authorised for payment of Western Union Money Transfer.
The Bank also undertakes proprietary Forex trading to increase profit by taking advantage of market movements. Our Merchant forex turnover stood at `26717 crore at the end of March 2013, as against `19652 crore of last financial year, recording a growth of `7065 crore (35.95%) during the year. Our NRI deposits stood at 1249 crore at the end of March 2013 against the
base of `950 crore in March 2012, registering a growth of `299 crore (31.47%). Our export credit stood at `2334 crore at the end of March 2013 against `1931 crore of March 2012, recording a growth of `403 crore during the financial year. In percentage terms, the growth was 20.87%.
The Bank chairs the local chapter of Foreign Exchange Dealers' Association of India (FEDAI). The Bank is an active member of FEDAI, International Chamber of Commerce (ICC) and Clearing Corporation of India Limited (CCIL).
INDUSTRIAL REHABILITATION
Rehabilitation/ restructuring of potentially viable industrial unit remains an important thrust area of the bank. For this purpose, the bank has its own Industrial Rehabilitation Policy containing detailed guidelines for undertaking rehabilitation/ revival package and the same is updated from time to time. Whenever units are found non viable or not responding to the rehabilitation/ restructuring package, focus is shifted to recovery of Bank's dues through legal recourse such as action under SARFAESI/ compromise settlement/ assignment
of debt/ through courts/ Debt Recovery Tribunals (DRT).
As at end - March 2013, the Bank had 27 large sick/ weak units on its books with aggregate outstanding of 364.13 crore. There are 31 Corporate Debt Restructuring cases with aggregate exposure of `1193.20 crore and 25 BIFR cases with exposure of `413.78 crore. The Bank has been acting as BIFR's Operating Agency in 6 cases. During the year under review, 15 accounts with aggregate exposure of `808.52 crore have been restructured under CDR mechanism as warranted basically by the tight economic scenario. Sustained efforts are undertaken by the Bank in restructuring the accounts and post sanction close monitoring and follow up have resulted in retaining most of the restructured assets as Standard Assets.
NPA MANAGEMENT
The Bank continues with its multipronged strategy of controlling Non-Performing Assets (NPAs) through intensive monitoring of large value accounts, close follow-up with DRT/ BIFR, restructuring of viable accounts and effectively utilizing the remedies
Bank Received 'Skoch' Digital Inclusion Award
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available under the SARFAESI and
RODA Acts. Due emphasis has been
given to follow up with the courts
and filing of Execution Petitions.
During the year, 'Recovery Camps',
Bank Adalats and Lok Adalats were
organized for NPA recovery, the results
of which were quite encouraging. The
progress in NPA /AUCA recovery
is being discussed / reviewed by
the Management Committee by
conducting Video-conferencing with
all the Zones and DGM headed
branches. To contain the growth of
NPAs, MIS data based on system
tracking is being extensively used.
The accounts in SMA / probable NPA
category are also discussed in every
video conferencing to regularise the
position and to avoid any account
slipping into NPA. The level of SMA /
Probable NPA are also brought down
by removing technical snags. The
'Loan Tracking Center' monitors and
tracks the irregular standard accounts
from Head Office level. Pre-emptive
measures such as restructuring etc
are also taken as per RBI guidelines.
By adopting the above measures and
utilizing the provisions of SARFAESI
Act effectively, Bank also received a
number of acceptable compromise
proposals which resulted in good
recovery in NPA. Though there
has been recovery/upgradation of
accounts to the tune of `696.61
crore, the gross NPA and net NPA
levels increased to `2119.49 crore
and `1303.28 crore respectively with
the gross NPA and Net NPA ratio at
3.62% and 2.27% respectively as on 31.03.2013.
RISK MANAGEMENT STRUCTURE
OF THE BANK
The Bank has an independent Risk Management Framework in place. At the apex level, there is a Risk Management Committee of the Board (RMCB), which oversees the policies and strategies for Risk Management in the Bank. Credit Risk Management
Committee (CRMC), Asset Liability Management Committee (ALCO), Market Risk Management Committee (MRMC) and Operational Risk Management Committee (ORMC) provide support to RMCB. These sub-committees are required to place all critical issues/ development in their respective areas to RMCB. The Bank has Credit, Market and Operational Risks Management Policies for identification, measurement and management of major risks. These policies are reviewed and updated from time to time, keeping in view the dynamic business environment. Integrated Risk Management Department (IRMD) at the Head Office, functions under a Dy. General Manager. The IRMD acts as the nodal centre for coordination with other departments/ operating units engaged in managing risk in their respective business areas.
CAPITAL FRAMEWORK
BASEL II: Under Pillar-I of the New Capital Adequacy Framework (NCAF) guidelines issued by Reserve Bank of India, the Bank is computing Capital to Risk Weighted Assets Ratio (CRAR) using Standardised Approach for Credit Risk, Standardised Duration Approach for Market Risk and Basic
Indicator Approach for Operational Risk. Under Pillar-II of NCAF, the Bank has assessed capital requirement for 2012-13 for other risks in its Internal Capital Adequacy Assessment Process (ICAAP) document, a copy of which has been submitted to RBI. Basel-II Disclosures have been made by the Bank in the Annual Report as also on Bank's website as part of the Pillar-III guidelines of NCAF.
BASEL III: In order to improve the quality of capital and address the liquidity risk issues, Reserve Bank of India has issued final guidelines on implementation of Basel III Capital Regulation in India. These guidelines will be implemented in phases w.e.f. 01.04.2013. With a view to improve market discipline under Pillar III of Basel II framework as also to improve transparency of capital base, draft guidelines on disclosure requirements has also been issued by Reserve Bank of India. The Bank is ready for a smooth transition to Basel III regime.
CREDIT RISK
Credit Risk management remains a major task for Bank and receives prime
attention. Control and monitoring
of credit risk is dealt with as per the
Hon'ble Union Finance Minister, Govt. of India,
Sh. P. Chidambaram Donating an Ambulance
to Shri Amar Jain Medical Relief Society Jaipur
on behalf of Bank
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Board-approved Loan policy and
Credit Risk Management, Credit Risk
Mitigation & Collateral Management
Policy of the Bank. These policies
cover methodologies for measuring,
monitoring and control of credit risk. In
order to control the magnitude of credit
risk, prudential norms on benchmark,
financing ratios, single borrower or
borrower-group exposure, industry
specific and sector-specific exposure,
exposure to sensitive sectors, hurdle
rate for taking a fresh exposure etc.
have been set up. Credit appraisal
systems and a clearly defined
delegation of powers form an integral
part of the Bank's Loan policy.
MARKET RISK
To monitor market risks and treasury
operations, mid-offices (domestic
& forex) are functioning at IRMD.
Scenario Analysis on market risk
covering events such as decline in
stock markets, rise in bond yields and
foreign exchange rate movements are
conducted regularly as per the Stress
Testing Policy of the Bank to assess
resilience of Investment portfolio.
OPERATIONAL RISK
One of the major tools for managing
operational risk is to put in place a well
established internal control system,
which includes segregation of duties,
clear management reporting lines
and adequate operating procedures.
Most of the operational risk events are
associated with weak links in internal
control systems or laxity in complying
with the existing internal control
procedures. The Bank has developed
suitable systems and procedures for
managing and control of operational risks.
PREPARATION FOR ADVANCED
APPROACHES OF BASEL-II
Bank has decided to move over
to advanced approaches of
Basel-II guidelines for Credit, Market
and Operational Risks. Letter of
Intent (LOI) for Credit Risk has been
submitted to Reserve Bank of India,
for assessing Bank's preparedness
to move over to advanced approach.
LOI for Market and Operational Risks
will be submitted soon. Internal
Rating Based (IRB) Approach for
Credit Risk, Internal Models Approach
(IMA) for Market Risk and Advanced
Measurement Approach (AMA) for
Operational Risk will be followed under
advanced approaches, on approval
from Reserve Bank of India. The
advanced approaches will not only
help the Bank to maintain Economic
Capital, but will also strengthen the
risk monitoring and control aspects.
PROJECT GANGA
Since augmentation of capital is not
only costly, but its availability is also
scarce, efforts are being made for
optimum utilisation of the existing
capital. 'Project Ganga', which has
been launched in Bank on 16.10.2012,
aims at conservation of capital by
improving data quality. Cleansing of
data will lead to computation of the
Risk Weighted Assets of the Bank
more accurately and ultimately result
in lesser requirement of capital.
ASSET LIABILITY MANAGEMENT
A comprehensive Asset Liability Management (ALM) System is in place for effective management of Liquidity Risk and Interest Rate Risk. These Risks are assessed and
monitored through Structural Liquidity
Reports and Traditional Gap Analysis
respectively. The structural liquidity
report is being prepared and reviewed
on a daily basis as per RBI guidelines.
Both the risks on Foreign Assets
& Liabilities are being monitored
through Maturity & Positions (MAP)
and Sensitivity to Interest Rate (SIR)
statements. The monitoring of liquidity
on a dynamic basis, over a time
horizon spanning 1-90 days, is in
place. Duration Gap Analysis is also
used to manage interest rate risk for
the entire balance sheet.
The Asset Liability Management Policy,
coupled with Investment Policy of the
Bank specified various prudential
limits for management of Liquidity
and Interest Rate Risks. The Bank is
regularly monitoring these limits. A
comprehensive Contingency Funding
Plan and a system of daily monitoring
of inflows & outflows of deposits are
in place for managing Liquidity on a
day-to-day basis. Calculation of Value
at Risk (VaR) on Foreign Exchange
Forward Positions and Stress Testing
on Liquidity, Interest rate and Foreign
Exchange Open & Forwards Positions
is also undertaken.
INTERNAL CONTROL, INSPECTION AND AUDIT
The Bank has in place a well
established independent audit system
and structure to ensure adequate
internal control for safe and sound
operations. Internal Audit is carried
out under Risk Focused Internal
Audit (RFIA) as envisaged under Risk
Based Supervision of RBI with focus
on assessment of risk and internal
control mechanism.
The branches have been categorized
into three groups as per risk perception
and are subject to varying degrees of
audit. During 2012-13, 664 Branches
and 57 Cells under Business Process
Re-engineering (BPR) initiatives have
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been subjected to internal audit.
No branch of the Bank remained
overdue for audit as on 31.03.2013.
104 branches and 35 BPR initiatives
covering 67.81% of advances
including non-fund based business
and 41.12% of deposits have been
placed under continuous surveillance
through concurrent audit. Besides
13 Head Office Department are also
subjected to concurrent audit system.
IS Audit Cell is in place to conduct
IS audit of major IT establishments
including Core Banking project , Zonal
Computer Centres, etc. in accordance
with RBI directives and Bank's IT Security Policy.
As at end March 2013, 99.89% of the Bank's branches was rated "Well Controlled" and "Adequately Controlled".
RECONCILIATION OF INTER-OFFICE TRANSACTIONS
As per the RBI guidelines, all the entries need to be reconciled within a period of six months from the date of their origin. By the end of March 2013, the bank has reconciled inter-branch transactions originated up to 28.02.2013 i.e. well before the time limit prescribed. The Bank is committed to performing better than the target set by RBI and shall aim at reconciling all the entries within two months of their origin.
INFORMATION TECHNOLOGY
CORE BANKING SOLUTION (CBS)
All our branches are running successfully on Core Banking Solution. We were able to provide better customer satisfaction and services by providing many Value Added Services like; multi functional ATMs, Internet Banking, flexi deposit scheme, multi city cheque facility, instant credit of local and outstation cheques, introduction of RTGS/ NEFT and SBGRPT for the faster settlement
of funds etc.
MOBILE BANKING
Mobile Banking facility introduced in the year of 2009, for our customers having a Savings / Current Account. The product is named "State Bank Freedom". Presently, there is upper ceiling of `50000/- for fund transfer and for purchase of goods / services per day with in overall calendar month limit of `250000/-. In order to make the registration process more robust and to eliminate the threat of frauds/ phishing attempts, the registrations are enabled over ATM/CBS only if the mobile number entered matches with the mobile number already available in the customer’s CIF in CBS.
INTERBANK MOBILE PAYMENT
SERVICES (IMPS)
“Interbank Mobile Payment Service” now renamed as "Immediate Payment Service" (IMPS), was launched in our bank in the year of 2012 for enabling our Bank customers to use mobile instruments as a channel for remitting funds or to make various utility payments at shops and commercial
establishments; Making payment just with the MMID (Mobile Money Identifier) of the beneficiary in secure manner on 24X7 basis. The upper ceiling for remittance or payment of bills is same as in Mobile Banking facility.
AUTOMATED TELLER MACHINES (ATMS)
The Bank has installed 12 new networked ATMs during the year to take the tally of ATMs to 1087 All the ATMs are connected to the network of State Bank Group ATMs, thereby enabling more than 51.50 lac cardholders of the Bank to have access to over 29504 ATMs of the State Bank Group all over the country. Our Saving Bank customers can also access ATMs of other Banks free of charge up to five transactions per month, including balance enquiry, subject to a maximum of `10000/- per transaction.
INTERNET BANKING
All branches are enabled to offer Internet Banking facility to our retail as well as corporate customers. Looking to the rapid increase in the
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usage of Internet banking worldwide, the Bank has introduced several new features during the year. Apart from transferring funds from their account to another account in our Bank, our customers can now transfer amount from their account to any other account in any bank (through RTGS/NEFT), TDS enquiry for Term Deposits from the comfort of their homes or offices, opening/ closing of e-TDR/ e-STDR/ e-Recurring Deposit (RD) account, facility to view the details of Income-Tax deposited (26-AS). The transaction rights with single ID up to `5.00 lac per day per user for small corporate customers, named 'CINB Saral', has been provided. Retail Internet Banking facility for visually challenged persons has also been made available. For Corporate customers, a new facility 'I - Collect', for on line collection of funds has been provided.
Online payment of direct and indirect taxes have been enabled in our Internet banking. Our customers can now pay online Income Tax, Service Tax, Excise Duty, Customs Duty of Central Government, Value Added Tax (VAT) and Central Sales Tax (CST) of Rajasthan State Government and Maharashtra State Government. EGRAS and facility for online collection of all Tax and non Tax revenue of Rajasthan Government. Facility of online payment of Professional Tax of Maharashtra State Govt. has also been provided. Facility of online application for IPOs through our internet banking portal www.sbbjonline.com with ASBA (Application Supported with Blocked Amount) facility where investor customer continue to earn interest during the application process is available to internet banking users.
Facility of online booking of Railway / Air Tickets has been widely accepted. Electronic payment of railway freight (E-Freight) is gaining popularity. We have integrated number of Aggregator to our online system to provide the facility of wide range of merchants and utility billers to our Internet Banking users. Our customers can now make
payment to 10000 plus merchants / billers. Steps have been taken to further increase the merchants / billers list.
Bank has taken steps to increase awareness about Internet banking among staff as well as customers. Meeting with staff of Corporates and Institutions were regularly held, to popularize online payment of taxes a facility of "Zero Balance Internet Current Account" has been introduced.
ELECTRONIC PAYMENT SYSTEMS:
USAGE OF RTGS, NEFT & SBGRPT
Real Time Gross Settlement (RTGS)
is an instant payment and settlement
system and National Electronic Fund
Transfer (NEFT) is a scheme for inter-
bank funds transfer operated by the
RBI. Our Bank has taken several
measures to increase usage of RTGS
and NEFT system. All branches of our
bank are RTGS & NEFT enabled. Our
customers can make their inter-bank
remittances in a faster and secured
manner at very nominal cost, on any
RTGS / NEFT enabled branch of other
banks in India. SB Group Payment
(SBGRPT) functionality for electronic
funds transfer within State Bank Group is also available for customer.
SMS UNHAPPY
The "Project SMS Unhappy" launched by the Bank with the objective to provide a simple and economical way to the customers to represent their grievances and reduce complaint resolution time drastically, to below 48 hours, thereby enhancing the customer satisfaction level and creating a loyal customer pool.
INSTANT LOAN SANCTION
Bank is providing the facility of online instant sanction of Housing Loan and Car loan to the customers under the head "Home Loan in 20 minutes" and "Car Loan in 10 minutes" respectively on Bank's website http: //www.sbbjbank.com/.
Customer gets sanction letter instantly on submitting completely filled application form on Bank's website if he fulfills the eligibility criteria.
GREEN CHANNEL COUNTER
Bank has implemented "Green Channel Counter" facility at our 508 branches of Rajasthan , Delhi NCR, Mumbai, Bangalore and Ahmedabad. It is a paperless, eco-friendly and easy facility which would enable customers to pre-process selected transactions in a branch. This shall be carried out using a Transaction Processing device (TPD) placed at a Single Window Operator's (SWO) terminal and linked with the desktop of the SWO and integrated with the CBS application. This TPD would act as a transaction pre-processing device, which would be used by customer to enter data for a particular transaction authenticated by the four digits PIN provided for the ATM-cum-Debit Card. The facility provides safety and comfort to the customers by avoiding filling up of withdrawal forms / cheques / pay in slips and quicker service.
SALARY & OTHER PAYMENT
Bank has developed an application for centralized electronic processing of Rajasthan State Govt. Salary and other Payments from a centralised branch identified as 'Online Treasury Branch, Jaipur'. The Project has been successfuly implemented in the Bank and is smoothly handling Inter Bank Salary Payments through NEFT and GRPT Other Govt. Payments e.g. Utility Bills (Electricity and Telephone), Vendor Payments, Scholarship Payments, Employees Medical Bills, Bonus, Aadhaar Based Payments through APBS/NACH (for Individual Payments through Govt. Bills).
At present the system is handling the volume of 7 to 10 lac records with 15000 to 18000 files consisting of approx. `1500 crores per month through this application. With the increase in APBS/NACH payments the volume is expected to increase multiple folds in near future.
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ONLINE LOAN TRACKING SOFTWARE
Bank has introduced a web based application for Online Tracking of Loan application for customers and status of their application can be viewed by the customers on internet through our Bank's website.
NEW DEBIT CARDS
The following new range of Debit Cards for 'P' segment customers has been rolled out by the Bank:
i. State Bank Classic Debit Card (Magstripe) ;
ii. State Bank Silver International Debit Card (Magstripe) ; and
iii. State Bank Gold International Debit Card (Magstripe).
Bank is also planning to introduce EMV (Euro Pay, Master Card and Visa) compliant Chip based cards very soon. These are presently under testing and would be available for issuance to the high value customer segments:
i. State Bank Gold International Debit Card (Chip + Magstripe) ; and
ii. State Bank Platinum International Debit Card (Chip + Magstripe).
PREPAID CARDS
Bank has introduced the Rupee Pre-paid Card (eZPay Card). It will be useful for students and others, who undertake only one or two transactions in the month and maintain account for the purpose. The Rupee Pre-paid Card (eZPay Card) is equally useful for the Corporates, who have to make various payments to their staff or contractual labour. The cards can be reloaded and can be used in any ATM or with any POS merchant, any number of times during their validity period.
INFORMATION TECHNOLOGY (IT)
SECURITY
With the efforts of the Bank to popularize IT enabled services, the
threats and risks to our IT assets have increased manifold. To control these threats and risks the Bank has a comprehensive IT and Information Systems (IS) Security Policy that addresses all these concerns including maintenance of customers' confidentiality, security and integrity of data. State Bank's data centre where our CBS data base resides (both at the Primary and Disaster Recovery Site) has already acquired the accreditation for the international standard for Information Security Management Systems ISO/IEC: 27001: 2005. All the Banking applications have built-in security features like access control, data encryption and transmission through secured channels as per requirement of the application. The threat of virus and worms is minimized by having a centralized anti-virus solution.
Adequate Firewalls and Intrusion Detection Systems are in place so as to prevent unauthorized access to the network. The security of the network is being managed by Network Management Consultants of the Bank. The Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) for all branches are in place.
KNOW YOUR CUSTOMER/ANTI
MONEY LAUNDERING /COMBATING OF
FINANCING OF TERRORISM MEASURES
Bank follows Reserve Bank of India/ Government of India guidelines on Know Your Customer/ Anti Money Laundering / Combating of Financing of Terrorism. Prescribed documents relating to the identity and address are obtained from customers while opening their accounts.
With the objective of Universal Financial Inclusion, Bank facilitates opening of 'Small Account' by migrant labourers, street hawkers and other poorer sections of the society, with limited KYC documents.
In order to identify and examine
suspicious transactions, the Bank
has installed the AMLOCK software
besides setting up an ANTI Money
Laundering Cell at the Head Office.
The customers' accounts have been
divided into different risk categories
and alerts are generated once any
transaction exceeds a predefined
threshold limit. These alerts help in
identification of suspicious transactions,
which are further reported to Financial
Intelligence Unit, Government of India,
in appropriate cases".
Hon'ble Education Minister, Rajasthan State
Inaugurated Scheme of one Water Purifier by
every Branch to a Government School
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LOAN TRACKING
The Bank had set up the Loan Tracking Centre (LTC), a Centralized Outbound Call Centre at Jaipur in June 2011, for follow-up of Personal and SME Segment Loan accounts in IRAC4, IRAC3, IRAC2 and IRAC1 categories to avoid slippages of account into a hardcore NPA. Subsequently in 2012, the LTC started following up irregular AGR accounts also. The Call Executives at the LTC make calls to the borrowers, where contact details are available in CBS, in a sustained manner to recover the overdue amount and upgrade accounts in co-ordination with Branches / CPCs.
CUSTOMER SERVICE:
Customer Service is a top priority for the Bank. Our 'SMS Unhappy', 'Car Loan in 10 min', 'Housing Loan in 20 min' & 'Mission Five' have gone a long way towards this
The meetings of the Customer Service
Committee of the Board and Standing
Committee on Customer Service
were convened at regular intervals
to review the position of customer
service rendered. Similar Committees
are also functioning at Branches,
Zonal and Head Offices, which helps
in continuous improvement in service
standards.
The Bank is a member of the Banking
Codes and Standards Board of India
(BCSBI) and has voluntarily adopted
a 'Code of Bank's Commitment to
Customers,' which sets a framework
for setting a minimum standard of
banking services to be provided by
the banks.
The Bank has put in place a multi
pronged grievances redressal
mechanism to suit varied customer
requirements. An aggrieved customer
can either make a written complaint
at branch / regional / zonal / head
office of the Bank or make an online
submission in the form provided on
the Bank's website / through e-mail
against acknowledgement.
INTEGRATED CUSTOMER
GRIEVANCES REDRESSAL
MECHANISM (ICGRM)
In a series of Bank's techno driven and Go-Green initiative towards customer service, Integrated Customer Grievance Redressal Mechanism (ICGRM) software has been operationalised for FY 2013-14 with a view of speedy and timely redressal of grievances with the leveraging of technology. It will facilitate on-line up loading, comments and closure of complaints at various levels which ultimately result in cost-time saving with speedy redressal / logical conclusion thereof. The MIS data base of the same will be helpful in initiating corrective action / measure to eliminate root-cause of complaints and excelling customer service at branches.
DISCLOSURE OF COMPLAINTS/
UNIMPLEMENTED AWARD OF
BANKING OMBUDSMAN :-
In terms of RBI circular DBOD.No.Leg BC.60/09.07.005/2006-07 dated 22.02.2007, the information in respect of customer complaints and awards passed by the Banking Ombudsman is given in the Table below :-
A. Customer Complaints (Position upto March 2013)
(a) No. of Complaints pending at the beginning of the year
61
(b) No. of Complaints received during the year(*)
5959
(c) No. of Complaints redressed during the year(*)
5949
(d) No. of Complaints pending at the end of the year
71
(*) Excluding 1593 Complaints found not sustainable.
B. Awards passed by the Banking Ombudsman (BO) (Position upto March 2013)
(a) No. of unimplemented Awards at the beginning of the year
01*
(b) No. of Awards passed by the Banking Ombudsman during the year
09
(c) No. of Awards implemented during the year
05**
(d) No. of unimplemented Awards at the end of the year(Appeal has been made before Appellate Authority)
01
* Appeal allowed and award passed
by BO set aside by the Appellate
Authority.
** In remaining three cases, in 1 case
BO Jaipur has cancelled the award. In
2 cases complainant has not accepted
the award.
Community Service Programme: Donation of
Tricycles by Chairman Sh. Pratip Chaudhuri
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31.03.2012 31.03.2013
486 996
116 122
136 155
206 224
792 844
159 185
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ATM COMPLAINTS
To monitor the ATM failed transactions related customer complaints received at the branches, ATM Complaints Reconciliation Cell has been established at Head Office. Reserve Bank of India has prescribed that all ATM related complaints be resolved within 7 working days. For faster resolution/ redressal of complaints, an online ATM Complaint Management System (ATMCMS) has been developed and implemented. During the year 2012-13, the Bank has received 41191 ATM failed transactions related complaints, out of which 40975 complaints were resolved. No home bank complaint (where customer and ATM both belong to our bank) is pending for more than 7 working days.
THE RIGHT TO INFORMATION (RTI)
The Right to Information (RTI) Department was constituted at the Bank’s Head Office in December,2010 for better coordination and effective implementation of the Right to Information Act, 2005. The applications received are disposed efficiently in a time bound manner as per provision of the Act and the appeals are also redressed in time.
During the year ended 31.03.2013, the RTI Deptt. received 1558 applications under the RTI Act, 2005, out of which 1530 applications were disposed and 28 applications were awaiting disposal as on 31.03.2013. All the pending 28 applications are less than one month old.
Besides, the Deptt. also received 97 appeals under the RTI Act,2005 during the year ended 31.03.2013 and all these 97 appeals stood disposed by the Appellate Authority as on 31.03.2013.
BUSINESS PROCESS
RE-ENGINEERING
Business Process Re-engineering (BPR) Initiatives stabilised further during 2012-13 and their coverage
extended to more branches. Bank operates 11 city-centric loan CPCs, viz. Retail Assets Central Processing Centre (RACPC)/ Small & Medium Enterprises City Credit Centre (SMECCC)/ Retail Assets and Small & Medium Enterprises City Credit Cell (RASMECCC) in end-state at 10 centres with 231 branches linked to them. Coverage of Rural Central Processing Centre (RCPC) increased to 299 branches at 19 centres. 17 Relationship Managers-Medium Enterprises (Hub Model) are working at 13 major business centres.
Non loan CPCs/ initiatives, viz. Liability Central Processing Centre (LCPC), Trade Finance Central Processing Centre (TFCPC), Currency Administration Cell (CAC), Central Pension Processing Cell (CPPC), Clearing CPC (CCPC), Multi Product Sales Team (MPST), Relationship Manager-Personal Banking (RMPB) have helped in further improvement in customer service. The coverage of various non loan CPCs / initiatives as on 31.03.2013 vis-à-vis 31.03.2012 was as under:
CPC / Initiative Branches Covered
31.03.2012 31.03.2013
LCPC 486 996
TFCPC 116 122
CAC / SCAB 136 155
Clg. CPC 206 224
CPPC 792 844
Branch Re-design 159 185
During Financial Year 2012-13, following developments took place to make CPCs / initiatives more effective and to optimize gains:
Rural CPC at Sribijaynagar started functioning w.e.f. 31.05.2012.
SCAB, Jaipur (erstwhile CAC-I and CAC-II) started functioning from 17.09.2012 at Collectorate, Jaipur premises.
At Jaipur centre, 3 CPCs viz. RACPC, LCPC, CCPC were shifted to a single premises where a 'National Back Office Centre' is
being created.
Linkage of all the branches with LCPC for SB accounts completed.
Shifting of back office activities to loan CPCs, implementation of revised roles for branch functionaries and better ambience in branches not only improved the Bank’s image but also helped the linked branches to focus more on customer service and marketing for business. BPR initiatives in the Bank are set to improve the quality of service further as also to increase the market share in business by leveraging technological changes.
CURRENCY MANAGEMENT
Being the Bank having the highest market shares in Rajasthan, RBI has designated 199 branches as Currency Chest branches in the state and 16 branches for other parts of our country. All of our Currency Chest branches are undertaking the following activities in an efficient Manner:
1. Circulation of New Currency
Notes among Public.
2. Distribution of Coins to the
Public.
3. Exchange of torn /damaged/
soiled/ Mutilated notes.
4. Providing of linkage facilities to
branches of other banks which
are linked to them.
5. Our 16 branches are providing
facilities of Note exchange and
coins distribution on 3rd Sunday of every month.
CROSS SELLING
The Bank continues to market life and non-life insurance, mutual fund and credit card products in order to augment its non interest income. For the purpose, the Bank has in place tie up arrangements with SBI Life Insurance Co. Ltd., SBI General Insurance Co.
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51st Annual General Meeting of Share holders
held at Jaipur on 24th May 2012
37
Ltd., SBI Funds Management Pvt. Ltd. and SBI Cards and Payments Services Pvt. Ltd. Various campaigns were launched for marketing of these products, which helped in getting a total income of `17.82 crore from cross selling activities.
COMMUNITY SERVICES BANKING
As a responsible Corporate Citizen, the Bank continues to undertake Community based Social activities such as tree plantation, free medical camps including blood donation camps, establishing of water huts & water coolers, sports competitions, honouring meritorious students etc. During the year 2012-13 the Bank donated Rupees Two Crores for relief Measures towards Rajasthan Chief Minister's Relief Fund and one ambulance each to Acharya Tulsi Cancer & Research Centre, Bikaner, Sewa Bharti Samiti Udaipur, Navjeevan Sansthan Jodhpur & Sri Amar Jain Medical Relief Society Jaipur and one Veterinary ambulance to Sri Gopal Goverdhan Goshala Pathmeda were made available.
Besides, one water purifier by every branch of bank to its nearby Government School, financial assistance to "Rays-Aasha ki ek kiran "working for HIV+ve children, distribution of Jaipur Foot & Tricycles to physically challenged persons, three delivery vans to the ISKCON food relief foundation for transportation of Mid-day meals to under privileged children studying in Govt. School, one digital X-Ray machine to Mahaveer International Dungarpur providing Medical relief to the poor & tribal patients were made available. Branches of the Bank continued to adopt one girl child each from a poor
family with an objective of providing
financial assistance for pursuing
studies in Government/Municipal
schools.
GOVERNMENT SPONSORED
SCHEMES
Laying utmost emphasis on Government sponsored schemes has
been amongst the major strategies of the Bank in pursuit of financial inclusion. The Bank continued to play a pioneering role in financing entrepreneurs under various government sponsored schemes. The position under various Government sponsored schemes as at end-March, 2013 is as under: -
Scheme Number of Beneficiaries
Amount sanctioned
during financial year (` crore)
Swarn Jayanti Shahri Rojgar Yojana (SJSRY)
2102 9.52
Prime Ministers Employment Generation Programme (PMEGP)
749 34.00
Swarn Jayanti Gram Swarojgar Yojna (SGSY)
4079 47.26
Artisan Credit Card Scheme
661 2.87
LEAD BANK SCHEME
The Bank has Lead Bank responsibility in nine Districts in the State of
Rajasthan viz. Bikaner, Barmer,
Hanumangarh, Jaisalmer, Jalore, Pali,
Sirohi, Rajsamand and Udaipur. The
Bank has been implementing and
monitoring the Annual Credit Plan
and other developmental and poverty
eradication schemes launched by
Govt. of India, Govt. of Rajasthan and
NABARD. Target allotted for Annual
Credit Plan to our Bank for the year
2012-13 is `2743 crore, against
which achievement of our Bank up to
March 2013, is 3810 crore, recording 139%.
MICRO CREDIT
At the end of March, 2013, the Bank has credit linked a total of 41349 Self Help Groups with an outstanding amount of `265.89 crore, out of which 34128 accounts are of women beneficiaries with an outstanding amount of `138.46 crore. NABARD has ranked the Bank as number one in Rajasthan State for its performance under Micro Credit continuously from the year 2004-05 to 2008-09. In the year 2009-10 our Bank has secured first position in Rajasthan for Micro Credit as per "Status of Micro finance in India 2009-10" published by NABARD. During the year 2010-11, our Bank secured 2nd position in SHG Credit Linkage. During the year 2011-2012 our Bank secured first position in SHG SB linkage and second position in SHG Credit linkage.
A Cement Unit Financed by the Bank
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(SJSRY)
2102 9.52
(PMEGP)
749 34.00
(SGSY)
4079 47.26
(ACC)
661 2.87
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RURAL SELF EMPLOYMENT
TRAINING INSTITUTES (RSETI)
In order to impart job- oriented skills to rural unemployed youth, the Bank has set-up seven RSETIs at Bikaner, Hanumangarh, Barmer, Jaisalmer, Jalore, Sirohi and Nathdwara (Distt. Rajsamand). The Bank has also set up a Skill & Entrepreneurship Development Institute (SEDI) at Jaitaran, Distt. Pali in association with Ambuja Cement Foundation (ACF).
By the end of March 2013, 27616 candidates have been imparted training for various local demand jobs in these institutions and with the help of this training,3756 candidates have been engaged in various jobs and 12467 candidates have started their own ventures. 5093 youth linked with Bank Finance of `29.66 crore.
FINANCIAL LITERACY AND
CREDIT COUNSELLING CENTRES
(FLCC)
In order to educate farmers and other people in rural / urban areas with regard to various financial products, various Bank schemes and services available from the formal financial sector, the Bank has set up 9 Financial Literacy and Credit Counseling Centres (FLCC) in all nine lead Districts in Rajasthan. These FLCCs are providing awareness service free of charge. Up to 31.03.2013, 38759 persons have been counseled by these centres.
REGIONAL RURAL BANK
"The MGB Gramin Bank (RRB sponsored by SBBJ) and Jaipur Thar Gramin Bank (RRB sponsored by UCO Bank) were amalgamated into a single Regional Rural Bank named 'Marudhara Gramin Bank' sponsored by SBBJ vide Government of India's notification dated 25.02.2013. Marudhara Gramin Bank with Head office at Jodhpur has a network of 458 branches spread over in 12 districts namely; Pali, Jalore,
Sirohi, Sriganganagar, Bikaner, Hanumangarh, Jaisalmer, Barmer, Jodhpur, Nagaur, Jaipur and Dausa. SBBJ continues to provide managerial support and financial assistance by way of refinance etc. to Marudhara Gramin Bank. All branches of Marudhara Gramin Bank are on CBS platform and provide Electronic Fund Transfer facility. Marudhara Gramin Bank has deposits of `4811 crore and advances of `3365 crore as on 31.03.2013. Marudhara Gramin Bank recorded profit before tax of `3.05 crore and net profit after tax of `2.11 crore during 2012-13.
BRANCH EXPANSION
During 2012-13, the Bank opened 90
new fully computerized branches. As
part of the Golden Jubilee celebrations
of the Bank, our Bank's 1000th Branch
at Sambhar was inaugurated by our
Hon'ble Union Finance Minister,
Govt. of India Sh. P. Chidamabaram
on 22.12.2012. As at the end of
March 2013, the total branches
stood at 1037, of which 373 are rural
branches, 291 semi-urban branches,
188 urban branches and 185 metro
branches. The number of branches in
Rajasthan has increased to 855 which
is the largest among all banks. Out of
these, 643 branches are located in
rural and semi-urban areas which play
an important role in rural development
and poverty alleviation in the State.
HUMAN RESOURCES DEVELOPMENT
The Bank’s staff strength as on
31.03.2013 is 12831 employees, with
the following break up: -
Hon'ble Governor of Rajasthan Awarded
Nabard's First Prize to Bank for Progress in
SHGs
Category of staff
Break up of Employees Out of which
SC ST General Total Women Minority
Officers
Clerical
Sub-Staff
Safai Karmchari
TOTAL
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Behavioural Science)
IIBF, NIBM CAB CAFRL
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Out of the Bank’s total staff strength
as on 31.03.2013, 2813 (21.92%)
belong to SC and 1196 ( 9.32%) to
ST categories. Reservation policy
is implemented in our Bank as per
Government guidelines.
Necessary complement of staff has
been made available for working
in new frontiers like core banking
solution, tele-banking, internet
banking, ATMs, credit/debit cards,
marketing, cross selling, business
process re-engineering etc. The Bank
has been according high priority
to training and sensitization of staff
members to respond to the customers’
expectations and deliver modern
banking facilities in the technology
driven environment.
Qualitative training for human
resources has become necessary for
improvement in the efficiency of human
capital. In this era of globalization,
privatization of banks and new
management concepts, the Bank has
to give high priority to training needs
to human resources to enable them
to cater the needs of its esteemed
customers. Looking to these facts,
a total no of 6641 employees of all
categories, including 300 employees
of the sponsored RRBs,were provided
training opportunities on various
subjects related to banking and
technology at all the three STCs of the
bank during the year.
The bank has also provided pre
recruitment training to 297 SC/ST
candidates appearing in the written
test for recruitment of clerical cadre
and officer cadre during the year.
In addition to this 35 seminars/
workshops were conducted on various
topics to up-date skills of employees.
More thrust has been accorded to
Mobile Banking Internet banking,
ATM services Soft skills, System
& Procedures, Marketing, quality
services to the customers in view of
the ever changing customer needs.
We have also conducted training
programmes on Management Skills
for first time posted Branch Managers
during the FY 2012-13.
Apart from in-house training, the
Bank has provided facility of training
to its officers in specialized areas
at apex training institutes like State
Bank Academy Gurgaon, State Bank
Staff College, Hyderabad, SBIICM
Hyderabad, SBIRD Hyderabad, CAB-
Pune, and IIBF-Mumbai. During the
said period 1175 officers have been
trained at these external agencies in
the areas of Core Banking Solution,
Forex, Fraud Detection, Market Risk
Management, Risk Management,
NPA Management, Stress Assets
Management, Legal option of recovery,
HR, SME, ATM, Behavioural science,
International Banking & Appraisal
of high value Credit Proposal. For
Various other programmes we have
also deputed our officers to Indian
Institute of Banking & Finance
(IIBF), NIBM-Pune, CAB-Pune, and
CAFRL-Mumbai etc.
During the current financial year, we
have deputed 7 officers for specialized
programmes held abroad in many
places like - 45th annual meeting of
Asian Development Bank (ADB) held
at Manila (Philippines), Annual meeting
of IMF & World Bank at Tokyo (Japan),
Beyond boundaries overseas training
at Harvard Business School, Boston
(USA), Advanced Management
Programme on towards the next orbit:
Indian Banking sector at New Delhi &
Europe, overseas training in Finance
Driving Corporate Performance,
China, Programme on Leadership
and Managing People at Pennsylvania
(Philadelphia).
We have taken a new initiative -by
launching of "Gyannodaya" e-learning
portal of SBBJ which will inculcate a
culture of self learning amongst the
employees. A scheme of deputing
top executives (GMs and DGMs) of
the bank for one training programme
of their choice, at reputed external
training institutions, has been started.
Similarly, we are also taking up steps
Bank's Foreign Exchange Stall in the Camel
Festival at Bikaner
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to arrange training programme on
leadership development for all AGMs
of the bank in reputed external
institutions. Another portal "Training
Needs" has been developed to make
on-line self nomination for the choice
training by the officers upto scale IV
cadre.
ORGANISATIONAL PLANNING
With a view to improving the levels
of supervision, organizational
effectiveness and overall efficiency,
one additional position of Chief General
Manager was created. The Chief
General Managers were designated
as Chief General Manager - Retail
Banking and Chief General Manager
- Commercial Banking. Functionalities
among Chief General Managers were
allocated. Seven additional positions
of General Managers were also
created. While 7 GMs were posted at
Head Office, 5 GMs were posted in
the field. 3 such GMs would lead the
3 Retail networks and 2 GMs would
lead the corporate networks. Roles
and responsibilities of the General
Managers were circulated and field
GMs were equipped by entrusting
adequate discretionary powers.
Keeping in view the availability of
significant business potential in and
around Alwar, which is one of the
fastest growing industrial estates,
a new Alwar Zone was created. For
greater focus on the AGM headed
branches to accelerate business
growth, such branches were brought
under the control of a separate DGM
by creating a position of DGM (Special
branches). This would also enable the
DGM, Delhi Zone to improve attention
over regions, and intensify efforts for
inclusive growth.
With a view to improving supervision
and monitoring of large corporate
accounts as also to ensure professional
services to such customers, the
incumbency of IFB, Jaipur branch,
Barakhamba Road, New Delhi branch
and Park Street, Kolkata branch were
upgraded from AGM's to DGM's.
In light of revised organizational
structure, the composition of various
non-board committees functioning at
the Head Office was also revised.
STAFF WELFARE
The Bank believes in keeping
the morale and motivation of the
employees high, considers employees
as its most important assets and
accords high priority to their welfare.
The Bank undertook staff welfare
activities like granting scholarships to the
meritorious wards of the employees,
providing free medical consultancy
services at various hospitals etc.
Insurance cover for employees to
the extent of `8.00 lac (`16.00 lac
for accidental death) under group
insurance scheme of SBI Life, Waiver
of housing loan of the deceased
employees, Overdraft limit (Personal
loan), PF loan and Conveyance loan
(upto `3.00 lac) and Special award
of `10000/- for education (one time
payment) to one ward of the deceased
employee. Reimbursement of funeral
expenditure is being made to the extent
of `10000/- from staff welfare fund.
Annual Health Check-up scheme has
been extended to the spouse of the
employees (age of employee between
41 to 49 years). Besides, relief to the
employees, who are on leave without
pay on sick ground, `15000/- per
month upto 24 months during the
entire service period is being extended.
The Bank has set up holiday homes
at Jaisalmer, Chandigarh, Mussoorie,
Jaipur, Manali, Mumbai, Goa, Delhi,
Haridwar, Katra , Bengaluru, Mt. Abu
and Udaipur. Various cultural and
sports activities were organized during
the year.
INDUSTRIAL RELATIONS
The Bank has a long history of
harmonious and cordial relations
with both supervising as well as
workmen employees enlisting
their total commitment, support
and cooperation. The Employee’s
Union and Officers’ Association
have extended their wholehearted
cooperation for the all-round growth
of the Bank. A well established and
an on going consultative machinery
is functioning at various tiers of the
administration for resolving issues
through joint consultations and
negotiations.
VIGILANCE ADMINISTRATION
Vigilance Administration is an integral
part of the management. Accordingly,
vigilance activities are being accorded
high priority in the Bank. Keeping in
view the paramount importance of
preventive vigilance, greater emphasis
is laid on the preventive measures.
The preventive vigilance comprises
the dissemination of knowledge and
precautions, to be exercised by the
operating staff while discharging
their duties. During the year, we have
conducted five training programmes
at various training centers, where
137 participants were benefited. In
many training programme conducted
at STC Jaipur, Chief Vigilance Officer
has interacted with participants on all
banking areas with focus on "How to
be a Vigilant Employee." Preventive
Vigilance Committee set up has been
revamped. Accordingly, branches
having staff strength of 10 or more, BPR
initiatives irrespective of staff strength,
unsatisfactory rated branches and
fraud detected branches, have been
included for formation of Preventive
Vigilance Committee. Meetings of
preventive vigilance committees are
arranged, where staff is sensitized
in regard to the preventive vigilance
measures. Complaints received in the
Vigilance Department are dealt with
expeditiously and in a professional
manner. In order to decide vigilance
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angle, complaints received in the
Vigilance Department are put up to
the Internal Advisory Committee.
Significant emphasis is laid on
the transparency in the tendering
process (procurement of goods and
services, auctions etc.) by the Bank.
The tenders issued by the Bank are
uploaded on the Bank's website as
well as Government of India website.
The department is publishing its in-
house magazine titled as “Vigilance
Bulletin” on quarterly intervals. Certain
new initiatives have been taken as
preventive measures like Electronic
Voucher Verification, Online Tracking
of status of loan application by the
applicant, better pre-sanction due
diligence process etc.
The department has disposed of 242
complaints, 59 Investigations have
been initiated and in total 51 cases
of investigations have been disposed
of. 60 preventive vigilance inspections
were conducted. The constant
supervision of the cases resulted in a
disposal of 75 vigilance cases, during
the year 2012-13.
USE OF HINDI
The implementation of Official
Language Policy in the Bank is not
only a statutory requirement but also
a business need. The Bank made all
possible efforts to comply with the
statutory provisions relating to the
official Language Policy of the Govt. of
India during the year and took several
initiatives to provide benefit of Bank's
different schemes to the masses
through Hindi Language.
During the year 2012-13, the Bank
made significant progress in promoting
and propagating the use of Official
Language and ensured compliance of
various other statutory requirements
framed under the Official Language
Act /Official Language Rules. The Bank
made all possible efforts to achieve
the targets set by Official Language
Deptt. Ministry of Home affairs, Govt.
of India.
Bank continued its efforts to promote
use of Hindi in the field of Information
Technology. A portal of Rajbhasha
Vibhag was made available on Bank's
infonet site. Various useful materials like
Hindi typing tool, format of Quarterly
Progress Report, Annual Programme
etc. were made available on the portal.
Officers/employees were imparted
training to work on computer in Hindi
with the help of Unicode.
Hindi Day and Hindi-fortnight were
celebrated in Offices/Branches of
the Bank in the month of September
2012 and various competitions were
conducted for the staff members.
An All India Hindi Essay competition
was conducted by the Head Office.
The winners of the competition were
awarded certificates and prizes. To
increase progressive use of Hindi
'Head Office Rajbhasha Trophy'
competition (Head office and Zonal
level) was organized during the year.
Bank's quarterly in House Rajbhasha
magazine "Upwan" is being published
regularly. For last year this magazine
had been awarded by Reserve Bank
of India.
The third Sub-committee of Parliament
on Official Language visited the
Bank's Shiv Marg, Jaisalmer Branch
at Jaisalmer. Honourable members
of the committee appreciated the
efforts undertaken by the Bank in field
of Official Language implementation.
Representative of Govt. of India also
visited our Head Office and Zonal
Office Jaipur and appreciated our
efforts. Our Jaipur Zone had been
awarded Second Prize by Bank
TOLIC, Jaipur for official Language
implementation.
AUDIT
State Bank of India, with the
concurrence of the Reserve Bank of
India, approved the appointment of 6
firms of Chartered Accountants viz. S.
Daga & Co. of Hyderabad, Agarwal
Anil & Co. of Delhi, M K Aggarwal
& Co. of Delhi, Chaturvedi & Co.
of Kolkata, Uberoi Sood & Kapoor
of Delhi and PSD & Associates of
Jaipur as the Bank's Statutory Central
Auditors for the year 2012-13. The
scope of audit covered 587 branches/
centralized processing units as against
860 branches/ centralized processing
units covered in 2011-12.
RESPONSIBILITY STATEMENT
The Board of Directors hereby states:
1. That in the preparation of the
annual accounts, the applicable
accounting standards have
been followed along with proper
explanations relating to material
departures;
2. That they have selected such
accounting policies and applied
them consistently and made
judgments and estimates that
are reasonable and prudent so as
to give a true and fair view of the
state of affairs of the Bank as on
the 31st March 2013, and of the
profit or loss of the Bank for the
year ended on that date;
3. That they have taken proper and
sufficient care for the maintenance
of adequate accounting records
in accordance with the provisions
of the Banking Regulation Act,
1949, and State Bank of India
(Subsidiary Banks) Act, 1959
for safeguarding the assets of
the Bank and preventing and
detecting frauds and other
irregularities; and
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commitment, sense of involvement
and dedication exhibited by each
staff member and constructive role
played by the Employees’ Union and
Officers Association in the overall
development, growth and prosperity
of the Bank.
For and on behalf of the Board of
Directors
Delhi B. Sriram
6th May, 2013 Managing Director
4. That they have prepared the
annual accounts on a going
concern basis.
CORPORATE GOVERNANCE
The details on Corporate Governance
are annexed.
ACKNOWLEDGEMENT
The Board of Directors is grateful to
the valued customers, esteemed
shareholders and the public at large
for their patronage and confidence
reposed in the Bank and places
on record its deep appreciation.
The Board of Directors thanks the
Government of India, State Bank of
India, Reserve Bank of India and other
regulatory agencies for their valuable
support and guidance throughout the
year.
The Board of Directors places on
record its deep appreciation of the
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CORPORATE GOVERNANCE
BANK’S VISION AND MISSION
The Bank has codified its ethos, values, culture and aspirations in its Vision and Mission statements. The Vision and Mission statements were last revised in the year 2009-10 and the revised statements are as under:-
Vision: “To be a state-of-the-art, customer-centric, values driven and professionally managed banking organisation; committed to the highest standards of good corporate governance practices; perpetual enhancement of the wealth of the shareholders and welfare of all stakeholders and the society”.
Mission: “To provide one stop solutions to all the banking needs of customers through a highly motivated, professional and efficient human resources pool with quality of service, customer care and customers’ business in focus by efficient use of Information Technology in a cost effective manner; meeting the expectations of all stakeholders through transparent, true and fair disclosures and responsive management principles in all the activities; to strive to fulfil corporate social responsibility with special emphasis on financial inclusion throughout the State of Rajasthan and aiming to provide the best banking services to one and all”.
The major distinguishing features of the revised vision and mission statement was laying emphasis on being state-of-the-art bank, adopting good corporate governance practices, welfare of all stakeholders and the society, providing one stop solution to all customers, efficient use of information technology in a cost effective manner, transparent/ true/ fair disclosures, responsive management principles, fulfilling corporate social responsibility and implementing financial inclusion in
the State of Rajasthan.
BANK’S CODE OF CORPORATE
GOVERNANCE
Adoption of best corporate governance and practices is the first step in realising the goals set forth in our Vision and Mission statement and accordingly the Bank has adopted its code of Corporate Governance:
The State Bank of Bikaner and Jaipur is committed to the best practices in the area of Corporate Governance. The Bank believes that proper Corporate Governance facilitates effective management and control of business, which in turn, enables the Bank to deliver the best results to all its stakeholders. The objectives can be summarised as:
To enhance shareholders' value.
To protect interests of share holders and other stakeholders including customers, employees and society at large.
To comply with directives of RBI, SEBI and other regulatory authorities.
To ensure transparency and integrity in communication and to make available full, accurate and clear information to all concerned.
To ensure accountability for performance and to achieve excellence at all the levels.
To provide corporate leadership of the highest standard for others to emulate.
THE BANK IS COMMITTED TO:
Ensure that the Bank's Board of Directors meets regularly, provides effective leadership, exercises control over management and monitors executive performance.
Establish a framework of strategic control and continuously review its efficacy.
Establish clearly documented and transparent management processes for policy development, implementation and review, decision-making, monitoring, control and reporting.
Provide free access to the Board to all relevant information, advice, resources as are necessary to enable it to carry out its role effectively.
Ensure that the Managing Director has line of responsibility for all aspects of executive management and is accountable to the Board for the ultimate performance of the Bank and implementation of the policies laid down by the Board. The role of the Managing Director is also guided by the State Bank of India (Subsidiary Banks) Act, 1959 and Subsidiary Banks General Regulations, 1959 with all amendments.
Ensure that a senior executive is made responsible to the Board to ensure compliance with all applicable statutes, regulations and other procedures, policies as laid down by the Board and report deviation, if any, to the Board.
BOARD OF DIRECTORS
The State Bank of Bikaner & Jaipur was formed in 1963 by amalgamation of the State Bank of Bikaner & State Bank of Jaipur. The Bank is governed by State Bank of India (Subsidiary Banks) Act, 1959 and Subsidiary Banks General Regulations, 1959, as amended from time to time. Board of Directors is constituted according to the provisions of the Act and also complies with the provisions of the Listing Agreement entered with the Stock Exchanges.
The Board of Directors is headed by the Chairman of State Bank of India, as ex-officio Chairman of the Bank. Other members of the Board are; the Managing Director (Executive), two nominee Directors (one from the Govt. of India and other from RBI), not more
50
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1 1628031.48 1269500.00 239000.00 118176.00 3254707.48
51
than 5 Directors nominated by State Bank of India, of whom not more than 3 shall be officers of that Bank (nomination of non-official director by SBI shall be in consultation with Central Government) , one Director each from employees - workmen and non workmen, respectively and not more than three Directors elected in the prescribed manner by the shareholders (including nominated by SBI).
At present, besides the Chairman and the Managing Director, there are 10 Directors on the Board including three Directors elected/ nominated by the shareholders.
Details of attendance of each Director at the meetings of the Board of Directors and number of other Committees of the Board of Directors in which he is a member or chairperson are given in annexure I(a) and I(b) respectively. Brief resume of the other non-executive Directors are also presented in Annexure II.
The Directors are paid sitting fee of `10000/- for attending every meeting of the Board of Directors and `5000/- for attending meetings of the various Committees of the Board (w.e.f. 18.10.2011) apart from reimbursement of usual traveling and halting expenses. Sitting fees are not paid to the Chairman, the Managing Director and the Directors who are officials of SBI, RBI and Government of India.
All the non-executive Directors have declared that they do not have any pecuniary relationship vis-à-vis the Bank.
SALARY AND ALLOWANCES PAID
TO THE MANAGING DIRECTOR IN
2012-13
A sum of `3254707.48 was paid as total remuneration to Shri Shiva Kumar, Managing Director during the financial year 2012-13. It includes tax on perquisites paid by the Bank and incentives as given below:
S. No.
Name Salary & Allowance
Incentive Perquisites Tax on Perquisites
Total
1 Shri Shiva Kumar 1628031.48 1269500.00 239000.00 118176.00 3254707.48
SITTING FEES PAID TO DIRECTORS IN 2012-13
A sum of `1065000/- was paid as
total sitting fees to the Directors for the
meetings of the Board and its various
Committees during the financial year
2012-13.
BOARD OF DIRECTORS : CHANGES DURING THE YEAR
Shri B. Sriram, appointed as the
Managing Director of the Bank's Board
w.e.f 01.03.2013 under clause (aa) of
sub-section (1) of section 25 of the
State Bank of India (Subsidiary Banks)
Act, 1959 vice Shri Shiva Kumar who
relinquished the office on 28.02.2013
on his reaching superannuation.
Shri Pradip Kumar Sanyal, Dy.
General Manager (A & S Group), SBI
nominated on the Board by SBI on
13.06.2012 vice Shri B. Ramesh
Babu, who relinquished the office
on 22.05.2012 on his transfer from
Corporate Office.
Smt. Malvika Sinha, Chief General
Manager, Reserve Bank of India, New
Delhi nominated by Reserve Bank of
India, a Director under clause (b) of
sub-section (1) of the Section 25 of
the SBI (Subsidiary Banks) Act 1959,
vice Shri Rajesh Verma and joined
the Board on 22.08.2012.
Shri S.D. Bali, Officer Employee
Director nominated by Central
Government under section 25(1)(cb)
of the Act, joined the Board w.e.f.
01.11.2012 vice Shri Rajendra
Kumar Shah who demitted the
office on his superannuation on
31.10.2012.
Shri Rajeev N. Mehra, Chief
General Manager (A & S Group), SBI
nominated on the Board by SBI on
01.12.2012 vice Shri A. K. Deb, who
relinquished the office on 30.11.2012
on his superannuation.
Shri Mihir Kumar, Director, Govt. of
India, Ministry of Finance, Deptt. of
Financial Services (Banking Division)
nominated by Govt of India, a Director
under clause (e) of sub-section (1) of
the Section 25 of the SBI (Subsidiary
Banks) Act 1959, vice Shri Amrik
Singh and joined the Board on
12.12.2012
Shri Shyamal Acharya, Director,
under clause (c) of sub-section (1) of
the Section 25 of the SBI (Subsidiary
Banks) Act 1959 demitted the office
after being shifted from his present
assignment as DMD & GE (A&S) State
Bank of India on 29.11.2012.
Shri Sanjeev Sharma, Director,
under clause (d) of sub-section (1) of
the Section 25 of the SBI (Subsidiary
Banks) Act 1959 demitted the office
after completion of his tenure on
14.05.2012.
The Board of Directors places on
record its deep sense of appreciation
for the valuable contributions made
by Shri Shiva Kumar, Shri Shyamal
Acharya, Shri A.K.Deb, Shri B.
Ramesh Babu, Shri Rajesh Verma, Shri
Sanjeev Sharma and Shri Rajendra
Kumar Shah during their association
with the Board and welcomes the new
Directors on the Board.
BIO-DATA OF THE NEW DIRECTORS OF THE BOARD
Brief resume of the Directors who
joined the Board of Directors during
2012-13 is furnished below: -
Shri B. Sriram, Managing director,
has 31 years experience in SBI. During
52
(Public Debt Office)
II
53
the 31 years span of his career with
SBI, he handled various assignments
as General Manager and Chief General
Manager. Prior to assuming charge
as Managing Director, he was Chief
General Manager (Delhi Circle).
Smt Malvika Sinha has worked in
RBI Mumbai, Patna and New Delhi
handling departments of Foreign
Exchange, Public Debt Office,
Department of Banking Supervision,
Department of Banking Operations
& Development, Department of Govt
and Bank Accounts & Secretary
Deptt. Currently, she is handling Deptt
of Non-Banking Supervision, Issue
Deptt and Foreign Exchange Deptt in
New Delhi.
Shri Rajeev N. Mehra Chief General
Manager, has more than three
decades experience in SBI. During
his career with SBI, he handled various
assignments as General Manager and
Chief General Manager.
Shri Pradip Kumar Sanyal, Dy
General Manager, A&S Group, CC,
SBI, Mumbai and having experience
of banking of 32 years.
Shri Mihir Kumar Govt nominee
Director and is IAS, presently posted
as Director, Deptt. of Financial
Services, Ministry of Finance, Govt of
India, New Delhi.
Shri Sunil Dutt Bali Officer Employee
Director, having vast experience
in Banking and also known for his
expertise in personnel matters and
actively and effectively leading the
officers' community not only in the
SBBJ but also in other banks.
Brief Bio-Data of other Non Executive
Directors is furnished in Annexure-II.
BOARD MEETINGS
During the year 2012-13, 11 meetings
of the Board of Directors were held on
20.04.2012, 11.05.2012, 24.05.2012,
24.07.2012, 17.08.2012, 26.09.2012,
03.11.2012, 22.12.2012, 01.02.2013,
27.02.2013 and 23.03.2013. Details
of the attendance of the Directors are
as per Annexure I (a).
GENERAL BODY MEETINGS :
51st Annual General Meeting of the
shareholders of the Bank for the
financial year 2011-12 was held at
Maharana Pratap Auditorium, Jaipur
on, 24.05.2012 at 11.30 a.m., was
attended by the following 10 Directors
on the Board:
Shri Pratip Chaudhuri Shri Shiva Kumar
Shri Shyamal Acharya Shri Amrik Singh
Shri Kunal Dalmia Shri A. K. Deb
Shri Rajesh T. Manubarwala Shri Bharat Rattan
Shri Rajendra Kumar Shah Shri D.K. Jain
The previous two Annual General
Meetings for the financial year
2009-10 and 2010-11 were held at
Jaipur on 02.06.2010 (11.30 a.m.) and
06.06.2011 (12.00 noon) respectively.
COMMITTEES OF THE BOARD
The Board of Directors has constituted
9 Committees of the Board, viz.
1. Executive Committee of the
Board
2. Audit Committee of the Board
3. Risk Management Committee of
the Board
4. Directors' Committee of the
Board
5. Special Committee to Monitor
Large Value Frauds
6. Customer Service Committee of
the Board
7. Shareholders’/Investors’ Grievance
Committee of the Board
8. Remuneration Committee of the
Board
9. Nomination Committee of the
Board
EXECUTIVE COMMITTEE OF THE BOARD (EC)
The Executive Committee of the Board
is constituted as per the regulation
38(1) (a), (b) and (c) of the Subsidiary
Banks General Regulations 1959, and
consists of Managing Director, three
Directors nominated under clause (c)
of sub section (1) of Section 25 of
the SBI (SB) Act, 1959 by State Bank
of India of whom not more than two
shall be officers of the State Bank of
India, and one Director elected by the
shareholders under clause (d) of sub
section (1) of Section 25 of the Act.
The Committee was last reconstituted
on 09/07/2012. Any other Director
wishing to attend the meeting has
an option to do so. The Executive
Committee, apart from the special or
general directions of the Board given
from time to time, is empowered to
take decisions in respect of all current
business of the Bank.
The meeting of the Executive
Committee is required to be held at
least once in a calendar month. 16
meetings of the Executive Committee
were held during the year 2012-13
{details given in Annexure 1(c)}.
AUDIT COMMITTEE OF THE BOARD (ACB)
The Audit Committee of the Board
was reconstituted on 24.05.2012.
ACB has presently 4 members of
the Board of Directors, including RBI
and SBI Nominee Directors and two
independent non-executive Directors.
Shri Bharat Rattan, is the Chairman of
the Committee w.e.f. 06/06/2011. The
members of ACB as on 31.03.2013
are:
i) Shri Bharat Rattan- Chairman
ii) RBI Nominee Director- Member
iii) SBI Nominee Director- Member
iv) Shri Rajesh T. Manubarwala- Member
54
(i)
(ii)
(iii)
(iv)
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55
ACB provides directions as also
oversees the total audit function in the
Bank. The major role, functions and
powers of the ACB include: -
to oversee the Bank’s financial
reporting process and disclosure
of its financial information to
ensure that the financial statement
is correct, sufficient and credible.
to approve any payment to
Statutory Auditors for any other
service rendered by the Statutory
Auditors.
to review, with the Management,
the annual financial statements
before submission to the Board
for approval, with particular
reference to:
(a) Matters required to be
included in the Director’s
Responsibility Statement to
be included in the Board’s
Report.
(b) Changes, if any, in accounting
policies and practices and
reasons for the same.
(c) Major accounting entries
involving estimates based on
the exercise of judgment by
Management.
(d) Significant adjustments made
in the financial statements
arising out of audit findings.
(e) Compliance with listing and
other legal requirements
relating to financial
statements.
(f) Disclosure of any related
party transactions.
(g) Qualifications in the draft
audit report.
Review, with the Management,
the quarterly financial statements
before submission to the Board
for approval.
Review, with the Management,
performance of Statutory and
Internal Auditors, adequacy of the
internal control systems.
Review the adequacy of
inspection and audit function,
if any, including the structure of
the Internal Audit Department,
staffing and seniority of the
official heading the Department,
reporting structure, coverage and
frequency of internal audit.
Discuss with Internal Auditors of
any significant findings and follow
up thereon.
Review the findings of any internal
investigations by the Internal
Auditors into matters where there
is suspected fraud or irregularity or
a failure of internal control systems
of a material nature and reporting
the matter to the Board.
Discuss with Statutory Auditors
before the audit commences,
about the nature and scope
of audit as well as post-audit
discussion to ascertain any area
of concern.
Look into the reasons for
substantial defaults in the payment
to the depositors, debenture
holders, shareholders (in case
of non-payment of declared
dividends) and creditors.
Review the functioning of the
Whistle Blower mechanism.
Focus on follow up of Inter-Branch
adjustment account, unreconciled
long outstanding entries in
Inter-Bank and Nostro Account,
arrears in balancing books of
branches, frauds and all major
areas of housekeeping.
The Audit Committee mandatorily
reviews the following information:
(a) Management discussion and
analysis of financial condition and
results of operations.
(b) Statement of significant related
party transactions (as defined by
the Audit Committee), submitted
by Management.
(c) Management letters/letters of
internal control weaknesses
issued by the Statutory Auditors.
(d) Internal Audit reports relating to
internal control weaknesses.
In fulfillment of the above role, the
Audit Committee has the powers to
investigate any activity within its terms
of reference, to seek information from
employees and to obtain outside legal
and professional advise.
6 meetings of ACB were held during
the year 2012-13, with at least one
meeting in each quarter {details
furnished in Annexure 1(d)}.
RISK MANAGEMENT COMMITTEE OF THE BOARD (RMCB)
The RMCB consists of 5 members of
the Board of Directors viz. Managing
Director, SBI Nominee Director and
three Non-Executive Directors (viz.
Shri Kunal Dalmia, Shri Bharat Rattan
and Shri Rajesh T. Manubarwala).
The RMCB was last reconstituted
on 24.05.2012. RMCB oversees the
policy and strategy for integrated risk
management related to various risk
exposures of the Bank. 8 meetings
of RMCB were held during the year
2012-13.
DIRECTORS' COMMITTEE OF THE BOARD
In terms of Govt. of India directives
dated 24.10.1990, the Directors’
Committee of the Board is functioning
in the Bank. The Committee consists
56
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57
of the Managing Director (SBBJ),
RBI Nominee Director and the Govt.
Nominee Director. The Committee
is required to review the disposal of
vigilance and other disciplinary action
cases. 4 meetings of the Committee
were held during the year 2012-13.
SPECIAL COMMITTEE TO MONITOR LARGE VALUE FRAUDS
In terms of RBI guidelines, a
Special Committee of Directors
was constituted for monitoring and
follow-up of cases of frauds involving
amounts of `1 crore and above. The
committee was reconstituted on
24.05.2012. The Special Committee
meets and reviews at least four times
in a year and as and when a fraud
involving an amount of `1 crore and
above comes to light. The members of
the Committee are Managing Director,
SBI Nominee Director, Shri Bharat
Rattan, Shri Rajesh T. Manubarwala
and Shri Kunal Dalmia. 4 meetings of
this Committee were held during the
year 2012-13.
CUSTOMER SERVICE COMMITTEE OF THE BOARD
The Customer Service Committee of
the Board was constituted in terms
of RBI guidelines. The Committee
was reconstituted on 23/03/2013.
The present Committee consists of 3
members viz. Managing Director, Shri
Rajesh T. Manubarwala and Shri Kunal
Dalmia (Non-Executive Directors). 4
meetings of the Committee were held
during the year 2012-13.
SHAREHOLDERS’/ INVESTORS’ GRIEVANCE COMMITTEE OF THE BOARD
In terms of Clause 49 of the Listing
Agreement with the Stock Exchanges,
the Shareholders’/ Investors’
Grievance Committee of the Board
(SGCB) has been reconstituted on
06/09/2011 under the Chairmanship
of an independent Director. The
SGCB presently consists of the
following Directors, viz. Shri Arun K.
Saraf, Shareholder Director-Chairman,
Managing Director-Member and Shri
Kunal Dalmia, Shareholder Director–
Member.
The SGCB held 4 meetings (quarterly)
during 2012-13 to review the position
of complaints received. During the
year, 24 complaints were received
and all were satisfactorily resolved.
As on 31.03.2013, no complaint was
pending. No application for transfer
of shares was pending for more than
one month as on 31.03.2013. The
Bank is regularly following up with
the shareholders in the matter of
unclaimed dividends.
REMUNERATION COMMITTEE OF THE BOARD
In terms of Government of India,
Ministry of Finance, Department of
Economic Affairs (Banking Division)
letter F.No.20/1/2005-BO.I dated
March 9, 2007, the Government has
decided that the whole time Directors
of Public Sector Banks would be
entitled to performance linked
incentives subject to achievement of
broad quantitative parameters under
the Statement of Intent (SoI) entered
into with the Government of India.
The evaluation of performance would
be done by a Sub-Committee of the
Board consisting of (i) Government
Nominee Director, (ii) RBI Nominee
Director, and (iii) two other Directors.
The Remuneration Committee was
reconstituted on 24.05.2012 with the
Directors viz. Government Nominee
Director, RBI Nominee Director and
two other Directors, viz. (i) Shri Arun
Kumar Saraf and (ii) Shri Bharat Rattan.
One meeting of the Committee was
held during 2012-13.
NOMINATION COMMITTEE OF THE BOARD
In terms of RBI's guidelines, a
Nomination Committee of the Board
was constituted to determine ‘fit and
proper’ status of the elected Directors.
The Committee was reconstituted
on 19/07/2011. The Committee
consists of the following Directors viz.
(i) Shri Bharat Rattan – Chairman, (ii)
Government Nominee Director, and
(iii) SBI Nominee Director. During the
year, one meeting of the Committee
was held.
NAME AND DESIGNATION OF COMPLIANCE OFFICER (SHARES AND BONDS)
Smt Aruna Nitin Dak, Chief Manager
(Share & Bonds) has been designated
as the Compliance Officer.
CHANGES IN ACCOUNTING TREATMENT
The financial statements of the Bank
are prepared under the historical
cost convention. They conform to
the Generally Accepted Accounting
Principles in India, which comprise
the statutory provisions, regulatory/
RBI guidelines, accounting standards/
guidance notes issued by the Institute
of Chartered Accountants of India
(ICAI) and the practices prevalent in
the banking industry in India. Detailed
disclosures as per RBI guidelines/
accounting standards of ICAI and
accounting treatment are given in
Schedule 18 of the Balance Sheet.
58
(i)
(ii)
(i)
(ii) (iii)
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59
CORPORATE SOCIAL RESPONSIBILITY
As a responsible Corporate Citizen,
the Bank continues to undertake
Community based Social activities
such as tree plantation, free medical
camps including blood donation
camps, establishing of water huts &
water coolers, sports competitions,
honoring meritorious students etc.
During the year 2012-13 the Bank
donated `2 crore for relief Measures
towards Rajasthan Chief Minister's
Relief Fund and one ambulance each
to Acharya Tulsi Cancer & Research
Centre Bikaner, Sewa Bharti Samiti
Udaipur, Navjeevan Sansthan Jodhpur
& Sri Amar Jain Medical Relief Society
Jaipur and one Veterinary ambulance
to Sri Gopal Goverdhan Goshala
Pathmeda were made available.
Besides, one water purifier by
every branch of bank to its nearby
Government School, financial
assistance to "Rays-Aasha ki ek
kiran" working for HIV positive
children, distribution of Jaipur Foot
& Tricycles to physically challenged
persons, three delivery vans to the
ISKCON food relief foundation for
transportation of Mid-day meals to
under privileged children studying
in Govt. School, one digital X-Ray
machine to Mahaveer International
Dungarpur providing Medical relief
to the poor & tribal patients were
made available. Branches of the Bank
continued to adopt one girl child each
from a poor family with an objective
of providing financial assistance for
pursuing studies in Government /
Municipal schools.
CODE OF CONDUCT
In terms of Clause 49 of the Listing
Agreement entered into with the Stock
Exchanges, the Bank has adopted a
Model Code of Conduct for its Board
Members and senior management
functionaries, which has also been
uploaded on the Bank’s website. The
declaration for compliance with the
Code of Conduct has been taken
from the persons concerned and a
certificate affirming the compliance is
placed at Annexure-III.
The Bank has also framed a code
of conduct for its Directors and
designated employees for prevention
of insider trading in Bank’s securities.
Number of Bank’s shares held by the
Directors as on 31.03.2013 is given in
Annexure 1(e).
OTHER DISCLOSURES
The Bank has not entered into any
materially significant related party
transactions with its Promoters,
Directors, or Management, their
subsidiaries or relatives, etc. that
may have potential conflict with the
interests of the Bank at large.
The Bank has complied with applicable
rules and regulations prescribed by
stock exchanges, SEBI, RBI or any
other statutory authority relating to the
capital markets during the last three
years. No penalties or strictures have
been imposed by them on the Bank.
The Bank has complied in all respects
with the requirements of Clause 49
of the Listing Agreement with the
Stock Exchanges, to the extent that
the requirements of the Clause do
not violate the provisions of State
Bank of India (Subsidiaries Banks)
Act, 1959, the Rules and Regulations
made thereunder, and guidelines or
directives issued by the Reserve Bank
of India and State Bank of India.
Mandatory requirements of Clause
49 as to the composition of the
Board of Directors, composition and
quorum of the Audit Committee, Non-
executive directors’ compensation,
the appointment, re-appointment of
the statutory Auditors and fixation of
their fees are not binding on the Bank,
as separate provisions in the State
Bank of India (Subsidiary Banks) Act
1959, General Regulations and the
Reserve Bank of India guidelines deal
with the same.
CERTIFICATE OF COMPLIANCE
A certificate of compliance of
conditions of Corporate Governance,
as stipulated in Clause 49(vii) of the
Listing Agreement with the Stock
Exchanges has been obtained from
the Auditors and placed at Annexure-
IV. It is confirmed that stipulations of
Clause 49 have been complied with.
ANNUAL GENERAL MEETING FOR THE FINANCIAL YEAR 2011-12
The important observations in respect
of the matters pertaining to the “Profit
and Loss Account and the Balance
Sheet” made by the shareholders
in the last Annual General Meeting
held on 24.05.2012 and the Bank’s
responses are given in Annexure V.
DISCLOSURES UNDER BASEL-II
The Bank has migrated towards
Basel-II norms w.e.f. March 31, 2008.
In terms of RBI guidelines, the various
disclosures under Basel-II are given in
Annexure VI.
MEANS OF COMMUNICATION
Half-yearly and Quarterly results of
the Bank for the year 2012-13 were
published in one English financial daily
(all editions) and one/two Regional
Hindi newspapers (all Rajasthan
60
(vii)
IV
V
II
II
II
VI
www.sbbjbank.com
www.sbbjbank.com
gogreensbbj@
mcsdel.com
61
editions). The results are also displayed
on the Bank’s website www.sbbjbank.
com.
GREEN INITIATIVE
The Ministry of Corporate Affairs
(M C A), Government of India, has
advocated "Green Initiative in Corporate
Governance" through its Circular No.
17/2011 dated 21.04.2011 read
with Circular No. 18/2011 dated
29.04.2011 by allowing paperless
compliances through electronic mode
for service of documents. In line with
the Government initiative as above, the
Bank will send notices/documents
including Annual Report comprising
of balance sheet, profit and loss
account, director's report, auditor's
report etc. in electronic form to
the email address provided by the
shareholders and made available to
the Bank by the Depositories.
Full text of the documents will also
be made available on the Bank's
website www.sbbjbank.com. As
before, physical copies of the notices/
documents including Annual Reports,
will be available for inspection during
office hours at the Registered Office
of the Bank.
REGISTRATION OF EMAIL
ADDRESS:
For shares held in physical
form, shareholders can
register their email address at
'[email protected]' mentioning
their name and folio number or write to
the Bank. For shares held in electronic
form, Shareholders are requested to
register their email address with their
Depository Participant (DP).
62
I,
%
52549924 75.07
3643139 5.20
58961 0.08
1462729 2.09
1980201 2.83
1397061 2.00
8772321 12.53
129414 0.18
6250 0.01
I
423.80 380.60 12270.13 11563.23 17664.10 17010.16
389.75 335.05 11955.47 10386.92 17432.33 15809.71
388.00 347.00 11926.62 10508.45 17448.48 15748.98
402.00 351.05 12405.76 11547.65 17631.19 16598.48
363.00 326.70 12208.36 11428.72 17972.54 17026.97
384.65 328.10 13241.96 11277.13 18869.94 17250.80
393.90 367.25 13481.46 12780.23 19137.29 18393.42
421.95 378.35 13965.19 12899.87 19372.70 18255.69
491.60 406.00 14439.96 13840.40 19612.18 19149.03
501.95 434.95 14865.95 14351.83 20203.66 19508.93
494.00 410.50 14620.48 13094.05 19966.69 18793.97
445.35 405.00 14040.08 12687.41 19754.66 18568.43
63
INFORMATION FOR GENERAL SHAREHOLDERS
a) Annual General MeetingPlace JaipurVenue
Date & Time
Maharana Pratap Auditorium, Bhartiya Vidya Bhawan, K.M. Munshi Marg, Opp. O.T.S., JaipurFriday, 7th June, 2013, 11.30 A.M.
b) Financial Year 01.04.2012 to 31.03.2013c) Date of Book Closure/ Record Date Record Date for Interim Dividend: 29.03.2013
Book Closure for AGM: 31st May, 2013 to 6th June, 2013 d) Dividend Payment Date Interim Dividend :- 08.04.2013e) Listing on Stock Exchanges BSE & NSE, Mumbai and JSE, Jaipurf) Stock Code 501061 (BSE), 231 (Jaipur Stock Exchange) & SBBJ (NSE)g) Share Transfer Agent M/s. MCS Limited
F 65, 1st Floor, Okhla Industrial Area, Phase I, New Delhi- 110020h) Share Transfer System Through Share Transfer Agent. Transfer/Transmission of shares approved by the Bank’s
“In-house Share Transfer Committee”.i) Dematerialisation of Shares
And liquidityThe Shares of the Bank have been dematerialized. The ISIN No. allotted by NSDL/CDSL is INE 648A01026. As on 31.03.2013, 95.09% shares of the bank have been dematerialized.
j) Details of outstanding GDRs/ ADRs/ warrants or any convertible instruments, conversion date and likely impact on equity.
NIL
k) Unclaimed Dividend The shareholders who have not encased their dividend warrants or have not received dividend of previous years, are requested to contact Shares & Bonds Department at Head Office, Jaipur for issue of duplicate dividend warrants.
MARKET PRICE DATA
MONTHS SBBJ’s Share Price BSE BANKEX BSE SENSEXHIGH LOW HIGH LOW HIGH LOW
April 2012 423.80 380.60 12270.13 11563.23 17664.10 17010.16
May 2012 389.75 335.05 11955.47 10386.92 17432.33 15809.71
June 2012 388.00 347.00 11926.62 10508.45 17448.48 15748.98
July 2012 402.00 351.05 12405.76 11547.65 17631.19 16598.48
August 2012 363.00 326.70 12208.36 11428.72 17972.54 17026.97
September 2012 384.65 328.10 13241.96 11277.13 18869.94 17250.80
October 2012 393.90 367.25 13481.46 12780.23 19137.29 18393.42
November 2012 421.95 378.35 13965.19 12899.87 19372.70 18255.69
December 2012 491.60 406.00 14439.96 13840.40 19612.18 19149.03
January 2013 501.95 434.95 14865.95 14351.83 20203.66 19508.93
February 2013 494.00 410.50 14620.48 13094.05 19966.69 18793.97
March 2013 445.35 405.00 14040.08 12687.41 19754.66 18568.43
DISTRIBUTION OF SHAREHOLDINGS (AS ON 31ST MARCH, 2013)
SHAREHOLDERS’ CATEGORYNo. of shares held % of shares held to Total
No. of shares
Promoter : State Bank of India 52549924 75.07
Mutual Funds /UTI 3643139 5.20
Financial Institutions /Banks 58961 0.08
Insurance Companies 1462729 2.09
Foreign Institutional Investors 1980201 2.83
Bodies Corporate 1397061 2.00
Individuals 8772321 12.53
Non Resident Indians 129414 0.18
Trust & Foundations 6250 0.01
Total 70000000 100.00
Address for correspondence : Chief Manager (Shares & Bonds) State Bank of Bikaner and Jaipur Head Office, Tilak Marg, “C” Scheme, JAIPUR - 302 005 Phone : 0141- 5101539 Fax : 0141-5101176 E-mail : [email protected]
MCS LimitedUnit: SBBJF-65, 1st Floor, Okhla Industrial Area, Phase- I, New Delhi- 110020 Phone: 011- 41406149Fax: 011-41406148Email: [email protected]
64
I
65
ANNEXURE- I(a)
DETAILS OF ATTENDANCE OF DIRECTORS AT THE MEETINGS OF BOARD OF DIRECTORS DURING 2012-13
S.No. Name of DirectorMeetings held
during his / her tenure
Meetings Attended
Whether attended AGM
No. of other BODs / Board Committees he/ she is a member Director/ Chairperson
1Shri Pratip Chaudhuri
11 4 P Chairman/Director- 19
Committee member/ Committee Chairman-14
2Shri Shiva Kumar(Upto 28.02.2013)
10 10 PChairman/Director- N.A.
Committee member/ Committee Chairman-N.A.
3Shri B. Sriram(w.e..f. 01.03.2013)
1 1 NChairman/Director- Nil
Committee member/ Committee Chairman-Nil
4Smt Malvika Sinha(w.e.f.22.08.2012)
6 3 NChairman/Director- Nil
Committee member/ Committee Chairman-Nil
5Shri Rajeev N.Mehra(w.e.f. 01.12.2012)
4 2 NAChairman/Director- 4
Committee member/ Committee Chairman-Nil
6Shri Pradip Kumar Sanyal(w.e.f. 13.06.2012)
8 6 NAChairman/Director-1
Committee member/ Committee Chairman-Nil
7Shri A.K. Deb(Upto 30.11.2012)
7 5 PChairman/Director-N.A.
Committee member/ Committee Chairman-N.A.
8Shri B. Ramesh Babu (Upto 22.05.2012)
3 2 NAChairman/Director- N.A.
Committee member/ Committee Chairman-N.A.
9 Shri Kunal Dalmia 11 2 PChairman/Director- 11
Committee member/ Committee Chairman-Nil
10Shri Amrik Singh(Upto 11.12.2012)
7 5 PChairman/Director- Nil
Committee member/ Committee Chairman Nil
11Shri Mihir Kumar(w.e.f. 12.12.2012)
4 3 NAChairman/Director- Nil
Committee member/ Committee Chairman-Nil
12Shri Rajendra Kumar Shah(Upto 31.10.2012)
6 6 PChairman/Director- Nil
Committee member/ Committee Chairman Nil
13Shri Sunil Dutt Bali(w.e.f. 01.11.2012) 5 5 NA
Chairman/Director- Nil Committee member/ Committee Chairman Nil
14 Shri D. K. Jain 11 10 PChairman/Director- Nil
Committee member/ Committee Chairman Nil
15Shri Rajesh T. Manubarwala(w.e.f. 20.04.2011)
11 10 PChairman/Director- Nil
Committee member/ Committee Chairman Nil
16Shri Bharat Rattan (w.e.f. 15.05.2011)
11 11 PChairman/Director- Nil
Committee member/ Committee Chairman Nil
17Shri Arun K. Saraf(w.e.f. 12.08.2011)
11 6 NChairman/Director- 15
Committee member/ Committee Chairman-Nil
18Shri Sanjeev Sharma(Upto 14.05.2012)
1 1 NAChairman/Director-N.A.
Committee member/ Committee Chairman-N.A.
19Shri Shyamal Acharya(up to 29.11.2012)
7 3 PChairman/Director-N.A.
Committee member/ Committee Chairman-N.A.
P -Attended N - Not attended N.A. - Not applicable
66
I
1
2
3
4
5
*
6
7
8
9
10
*
*
67
ANNEXURE – I (b)
LIST OF BOARD OF DIRECTORS AS ON 31.03.2013
S. No.
Name of Director
Designation Appointed since
Address No. of Committees of which he/ she is a Member/Chairperson
1 Shri Pratip Chaudhuri
Chairman 07.04.2011 ChairmanState Bank of India, Corporate CentreMadame Cama Road, Mumbai-400021
Chairman- Nil Committee Member-Nil
2 Shri B. Sriram Managing Director
01.03.2013 Managing Director State Bank of Bikaner and JaipurHead Office, Tilak MargJaipur - 302 005
Chairman- 5 Committee Member-1
3 Smt Malvika Sinha RBI Nominee Director
22.08.2012 Chief General Manager,Deptt of Non-Banking Supervision, Issue Deptt and Foreign Exchange Deptt, Reserve Bank of India, New Delhi
Chairman- Nil Committee Member-3
4 Shri Rajeev N. Mehra
SBI Nominee Director
01.12.2012 Chief General Manager (A & S Group)State Bank of India, Corporate Centre, Mumbai–400 021
Chairman- Nil Committee Member-5
5 Shri Pradip Kumar Sanyal
SBI Nominee Director
13.06.2012 Dy. General Manager (A&S)Associate Banks DepartmentState Bank of IndiaCorporate Centre, Mumbai-400021
Chairman-Nil Committee Member-5*
6 Shri Rajesh T. Manubarwala
Director 20.04.2011 2615/9 A, Near Hotel Laxmi, GIDC Asian Paint Char Rasta, Ankleshwar-393002
Chairman- 1 Committee Member-4
7 Shri Bharat Rattan,
Director 15.05.2011 B. Rattan & Associates,Shop No. 408-409, Mahak Tower, Kailash Cinema Road, Civil Lines Ludhiana-141001
Chairman-2 Committee Member-4
8 Shri Arun K Saraf Shareholder's elected director
12.08.2011 Managing Director,, Juniper Hotels Pvt Ltd., Grand Hyatt Mumbai, Santacruz,MUMBAI-400005
Chairman-1 Committee Member-2
9 Shri Kunal Dalmia, Shareholder's elected director
12.08.2010 Lindsay Tower, 9th Floor,13, Nelisen Gupta Sarnee,Kolkata-700087
Chairman- Nil Committee Member-4
10 Shri Mihir Kumar Central Government Nominee Director
12.12.2012 Director, Govt. of India, Ministry of Finance, Deptt. of Financial Services (Banking Division), 3rd Floor, Jeevan Deep Bldg., Parliament Street, New Delhi.-110001
Chairman- Nil Committee Member-3*
11 Shri Sunil Dutt Bali Officer Employee Director
01.11.2012 Muskan, Sector IV,Vidyadhar Nagar, Jaipur
Chairman- Nil Committee Member-Nil
12 Shri D.K. Jain, Workmen Employee Director
12.01.2011 S. W. O. State Bank of Bikaner & Jaipur, Z. O., Patel circle, Udaipur-313001
Chairman- Nil Committee Member-Nil
* Shri Rajeev N. Mehra and Shri Pradip Kumar Sanyal are nominated on the Audit Committee of the Board in their respective capacities.
68
142
132
102
13
319
2 1
12 3
16 9*
9 1*
412
45*
412
2*8
7 7*
*
I
I
69
ANNEXURE - I(c)
ATTENDENCE OF EC MEETINGS DURING 2012-13
S.No. NAME OF DIRECTOR MEETINGS HELD DURING HIS/HER TENURE
MEETINGS ATTENDED
1. Managing DirectorShri Shiva KumarShri B. Sriram
142
132
2. SBI NomineeShri A.K. DebShri B. Ramesh BabuShri Pradip Kumar Sanyal
102
13
319
3. Shri Sanjeev Sharma 2 1
4. Shri A.K. Deb 12 3
5. Shri D. K. Jain 16 9*
6. Shri Rajendra Kumar Shah 9 1*
7. Shri Rajesh T. Manubarwala 412
45*
8. Shri Bharat Rattan 412
2*8
9. Shri Sunil Dutt Bali 7 7*
* Meeting attended as non member of the Committee.
ANNEXURE - I(d)
ATTENDENCE OF ACB MEETINGS DURING 2012-13
S.NO NAME OF DIRECTOR MEETINGS HELD DURING HIS/HER TENURE
MEETINGS ATTENDED
1. Shri Bharat Rattan(Non Executive Director, Chairman)
6 6
2. RBI NomineeShri Rajesh VermaSmt. Malvika Sinha
24
01
3. SBI Nominee 6
Shri Rajeev N MehraShri Pradip Kumar SanyalShri A.K. Deb
040
Shri B. Ramesh Babu 1
Shri Kaushal Kishore 1
4. Shri Rajesh T. ManubarwalaNon Executive Director
5 5
5. Shri Amrik Singh(C. Govt. Nominee Director) Meeting attended as special invitee.
1 1
70
100
1901
225
I
71
ANNEXURE -I(e)
NUMBER OF SHARES HELD BY THE DIRECTORS
(AS ON 31.03.2013)
No. Name of Director No. of Shares held by the Director
1 Shri Pratip Chaudhuri Nil
2 Shri B. Sriram Nil
3 Smt Malvika Sinha Nil
4 Shri Rajeev N Mehra Nil
5 Shri Pradip Kumar Sanyal Nil
6 Shri Rajesh T. Manubarwala Nil
7 Shri Bharat Rattan, Nil
8 Shri Arun K Saraf 100
9 Shri Kunal Dalmia, 1901
10 Shri Mihir Kumar Nil
11 Shri Sunil Dutt Bali 225
12 Shri D.K. Jain, Nil
72
II
III
73
ANNEXURE – II
BRIEF RESUME OF OTHER NON-EXECUTIVE DIRECTORS
Shri Rajesh T. Manubarwala, is a Tax consultant by profession and also having Bar Council membership. He is having 35 years experience in his profession. He is also trustee in Sanskardeep School, GIDC, Ankleshwar
Shri Bharat Rattan, is a Chartered Accountant by profession having experience of 17 years. He has been engaged with various types of audit (Concurrent audit, Special Audit, Statutory Audit) of various banks, Govt Deptt, Insurance Companies. He is also having license of Insurance Surveyor.
Shri Arun Kumar Saraf, is well known businessman and Director on the Boards of various companies engaged in hotel business. He is having rich experience of development of new hotels, mobilizing funds for the projects, inking various land-purchase agreements.
Shri Kunal Dalmia, is renowned industrialist and director on the Board of various companies engaged in manufacturing refractory products, pulp and paper, Export of Engineering products, Real Estate etc. He is President of Arcelor Mittal Refractories, Poland. He is also associated with various chambers of Commerce and Industries Organisations.
Shri D. K. Jain, is workman director and single window operator, SBBJ and working at Zonal Office, Udaipur.
ANNEXURE – III
DECLARATION OF COMPLIANCE WITH THE CODE OF CONDUCT
I confirm that all Board Members and Senior Management have affirmed Compliance with the Bank's Code of Conduct for the financial year 2012-13.
Delhi B. Sriram06.05.2013 Managing Director
74
IV
( ) ( ) ( 99374)
( 12705) ( 80527) ( 072332)
75
For S. DAGA & CO.
Chartered Accountants
(CA SHANTI LAL DAGA)
(M.No. F-11617)
PARTNER
Firm Reg. No. 000669 S
For AGARWAL ANIL & Co.
Chartered Accountants
(CA ANIL AGRAWAL)
(M.No. 82103)
PARTNER
Firm Reg. No. 003222 N
For M.K AGGARWAL & CO.
Chartered Accountants
(CA ATUL AGGARWAL)
(M.No. 99374)
PARTNER
Firm Reg. No. 01411 N
For CHATURVEDI & CO.
Chartered Accountants
(CA SATISH CHANDRA CHATURVEDI)
(M. No.12705)
PARTNER
Firm Reg. No. 302137 E
For UBEROI SOOD & KAPOOR
Chartered Accountants
(CA SANJAY SOOD)
(M. No.80527)
PARTNER
Firm Reg. No. 001462 N
For P S D & ASSOCIATES
Chartered Accountants
(CA PRAKASH SHARMA)
(M. No. 072332)
PARTNER
Firm Reg. No. 004501 C
Delhi
06th MAY 2013
ANNEXURE IV
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
TO THE MEMBERS OF
State Bank of Bikaner and Jaipur
We have examined the compliance of conditions of corporate governance by the State Bank of Bikaner and Jaipur, for the
year ended on the 31st March, 2013 as stipulated in Clause 49 of the Listing Agreement of the State Bank of Bikaner and
Jaipur with Stock Exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the State Bank of Bikaner and Jaipur for ensuring the
compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the
financial statements of the State Bank of Bikaner and Jaipur.
In our opinion and to the best of our information and according to the explanation given to us, we certify that the State Bank
of Bikaner and Jaipur has complied with the conditions of Corporate Governance as stipulated in the above mentioned
Listing Agreement.
We state that no investor grievance is pending for a period exceeding one month against the State Bank of Bikaner and
Jaipur as per the records maintained by the Shareholders’/Investors Grievance Committee.
We further state that such compliance is neither an assurance as to the future viability of the State Bank of Bikaner &
Jaipur nor the efficiency or effectiveness with which the management has conducted the affairs of State Bank of Bikaner
& Jaipur.
76
% %
%
` � III
�
` `
` ` `
` `
`
V
77
ANNEXURE-V
SHAREHOLDER’S QUERIES WITH REGARD TO PROFIT & LOSS ACCOUNT AND BALANCE SHEET RAISED IN THE LAST ANNUAL
GENERAL MEETING HELD ON MAY 24, 2012 AND THEIR RESPONSES:
OBSERVATIONS REPLIES
1 NPA : Steep growth in Net NPA to Net advances which was 0.83% is increased now to 1.93% i.e. double the existing NPA. The position is very much disappointing. Kindly explain (page 155)
Position of Net Advances and Net NPA as on 31st March, 2012 vis-à-vis 2011 are as under:
Rs. in Crore 2012 2011 % increase
Net Advances : 49244.33 41206.65 19.51%
Net NPA : 945.41 341.33 176.98%
Net NPA to Net Advances:
1.92% 0.83%
The growth in Net advances for the year ended 31.03.12 was 19.51% over 31.03.2011. During the same period, the Net NPA increased by 176.98% on account of addition of some large value accounts in commercial segment (owing to global recession) and other value accounts in AGR Segment. Resultantly, the Net NPA% increased from 0.83% as on 31.03.2011 to 1.92% as on 31.03.2012
2 In the NPA details provided in the Annual Report, names of top 5 NPA should also be published.
The matter relates to client confidentiality. Disclosing the names of big NPA accounts could be detrimental to the interest of the borrower in improving their financial position.
3 The Rate of Dividend for this year decreased from 164% last year to 145% even after highest profit of `652 crores as well as Golden Jubilee year of the Bank. This is unfair with the shareholders and needs to be revised.
In view of implementation of BASEL-III, Banks are required to maintain higher CRAR to comply with the international standards. Therefore the Board of Directors decided to conserve capital keeping in view the future business prospects of the bank. The money which is transferred to reserves will improve the Return on Equity.
4 Page 177 : AS 20 : Earning Per share : Cause of less Earning per share
Less earning per share is due to increase in number of 2 crore fully paid equity shares on account of rights issue during the year.
5 Why Contingent liability increased during the year by `3398 crores. Please explain the reason
Contingent Liabilities increased due to increase in forward exchange contracts booked by the Bank on behalf of customers (`2400 crore). In the interest of customers we have to book forward exchange contract on the present rates. Increase in contingent liability due to forward exchange contracts is a good sign showing that the Bank is doing well in forex business.
6 Schedule No.9 - Unsecured Advances : Unsecured advances are on high side recording a growth of 15.50% from `5890 crore to `6972 crores this year. Are they fully provided for ?
The total provision for Bad & Doubtful debts of `431.43 crore includes provision for unsecured advances also as per RBI Guidelines.
7 Please confirm that the actuaries for pension and gratuity is done every year. How much provision has been made for actuaries during the year ended 31.3.2012. This should not include the share of amortization
Bank gets actuarial valuations done every year. Bank charged to its Profit and Loss account 179.25 crores and 36.87 crore towards pension and gratuity liability respectively (including the amortised amount of `76.89 crore) for the financial year 2011-12.
78
- VI
II
III II
II
I
79
ANNEXURE VIBASEL-II DISCLOSURES
In terms of Reserve Bank of India guidelines on New Capital Adequacy Framework (NCAF), Pillar-III Disclosures of the Bank as on 31.03.2013 are as under:
Capital Management
Capital management is aimed at ensuring that there is sufficient capital to meet the requirement of the Bank as determined by its underlying business strategy and also that sufficient cushion is available to absorb unexpected shocks that could arise out of adverse market conditions and external factors.
The Bank aims to maintain Capital Adequacy Ratio (CAR) well above the regulatory minimum level of 9%. Excess capital above the regulatory minimum is for supporting anticipated future business growth and to serve as a buffer for any unexpected shocks thereby ensuring that the Bank’s CAR does not fall below the regulatory minimum level even in adverse conditions.
Risk Management
The risk management processes and practices employed by the Bank have been developed in the wider context of the relationships between risk, capital and earnings.
The strategic objectives set by the Board determine the Bank’s risk appetite, which is an important input for its capital planning and performance management. Risk appetite is the maximum risk the Bank is willing to accept in executing its business strategy while staying protected against events that may have an adverse impact on its profitability and capital base. Risks are being managed by using limits or checkpoints set across all dimensions of capital, earnings volatility and concentration risk. These limits are determined by a well-defined maximum risk appetite.
By adopting an integrated risk management approach, the Bank seeks to improve its methods for identifying and quantifying risks, to develop a more effective risk management system, to achieve a stable balance between earnings and risk, to eliminate concentrations of specific risks, to create an appropriate capital structure, to achieve optimal allocation of resources, and to sustain high asset quality. This contributes to the strengthening of the financial health of the Bank and maximizing of shareholders’ value.
The Bank broadly classifies and defines risk types as under:
Credit Risk The risk of financial loss in credit assets (including off-balance sheet instruments) caused by deterioration in the credit conditions of counterparties.
Market Risk The risk of financial loss where the value of assets and liabilities could be adversely affected by changes in market variables such as interest rates, securities prices and foreign exchange rates.
Liquidity Risk The risk to earnings and capital arising from a bank’s potential inability to meet its liabilities when they become due without incurring unacceptable losses.
Operational Risk The risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events.
Interest Rate Risk in Banking Book The risk that the value of bank’s financial assets may decrease and/or the value of the bank’s liabilities may increase because of changes in interest rates. Interest Rate Risk arises primarily from the maturity mismatch of assets and liabilities. The overall objective is to manage current and future earnings sensitivity to interest rate risk exposure.
The Bank has the following risk management committees in place for its overall risk management: Risk Management Committee of the Board, Credit Risk Management Committee, Market Risk Management Committee and Operational Risk Management Committee. Besides these committees, the Bank’s Assets-Liabilities Management Committee (ALCO) and Balance Sheet Management Group monitor the build-up of assets and liabilities across maturities for liquidity tracking and assessing rate sensitivity on an ongoing basis.
The various risk management committees discuss and dynamically manage the different types of risks both from qualitative and quantitative perspectives. The Board of Directors lays down the Bank’s risk management policies for various types of risk based on the discussions held by these committees.
In terms of RBI guidelines on Basel-II framework, the Bank has adopted the Standardised Approach for Credit Risk, Standardised Duration Approach for Market Risk and Basic Indicator Approach for Operational Risk. In addition to regulatory capital requirement of computation as per Pillar-I, the Bank also assesses Liquidity Risk and Interest Rate Risk and carries out strests tests on a regular basis to asses adequacy of the capital available as a cushion to withstand shocks from market forces and external factors.
80
DF
II
I II
I
I
II II II
II
I II I
`
( ) I (i + ii + iii + iv – v) : 4932.57
(i) : 70.00
(ii) : 4694.13 (iii) : 200.00
(iv) : 0.00
(v) I : (31.56)
( ) II : 1648.92
(i+ii+iii-iv)
i II :
l : 450.00
l : 0.00
l : 450.00
ii II :
l : 1500.00 l : 0.00
l : 900.00
iii : 317.53
(iv) : (18.61)
( ) III : 0.00
( ) I II : 6581.49
[ ]
81
Qualitative and quantitative disclosures in terms of RBI guidelines and our Disclosure Policy are appended in the Disclosure Tables (DF) 1 to 10.
DF-1 SCOPE OF APPLICATION
Basel-II framework is applicable to the Bank at solo level. It has no subsidiary. However, investment in MGB Gramin Bank,
Pali (in which Bank has 35% equity stake) has been deducted from Tier-I and Tier-II capital -50% each.
DF-2 : CAPITAL STRUCTURE:
Qualitative Disclosures:
(a) Summary:
Type of Capital Features
Equity (Tier-I) Shares issued to
SBI (75.07%)
Public (24.93%)
Innovative Instruments
(Tier-I) Innovative Perpetual Debt Bonds: Unsecured, non-convertible, subordinated, perpetual Bonds in the nature of Promissory Notes. Call option and step-up coupon available after 10 years (subject to RBI approval at the time).
Tier-II Subordinated Debt Instruments i.e. Upper Tier-II and Lower Tier-II bonds issued by the Bank are unsecured, redeemable, non-convertible bonds. Call option available for Upper Tier-II bonds after 10 years (subject to RBI approval at the time)Period : ranges from 111 months to 180 months
Details of Tier-I and Tier-II debt issues given in Appendix I.
Quantitative Disclosures: (` in Crores)
(b) Tier-I Capital (i + ii + iii + iv – v) : 4932.57
(i) Paid-up Share Capital : 70.00
(ii) Reserves : 4694.13
(iii) Innovative Instruments : 200.00
(iv) Other Capital Instruments : 0.00
(v) Amount deducted from Tier-I Capital(i.e. Deferred Tax Asset & Investment in RRB)
: (31.56)
(c) Total Eligible Tier -2 Capital (Net of deductions)(i+ii+iii-iv)
: 1648.92
(i) Debt Capital Instruments eligible for inclusion in Upper Tier-2 Capital: :l Total amount outstanding : 450.00l Of which raised during Current year : 0.00l Amount eligible for being reckoned as Capital : 450.00
(ii) Subordinated Debt eligible for inclusion in Lower Tier-2 Capital: :l Total amount outstanding : 1500.00l Of which amount raised during current year : 0.00l Amount eligible for being reckoned as Capital : 900.00
(iii) General Provision and Loss Reserves : 317.53
(iv) Deduction from Tier- 2 Capital, if any : (18.61)
(d) Total Tier-III capital, if any : 0.00
(e) Total Eligible Capital (net of deductions from Tier I & Tier II Capital) [Total of (b), (c), (d)]
: 6581.49
82
l ICAAP
l
l I II
`
( )
l : 4418.04
( )
l : 96.41
( )
l : 353.26
: 4867.71
( ) I : 12.16%
I : 9.11%
I. Impaired
II
II.
l VI
l
l
n
n
n
l
l
l
l
l
83
DF-3 : CAPITAL ADEQUACY
Qualitative Disclosures:
Bank has a Board-approved ICAAP(Internal Capital Adequacy Assessment Process) Policy
Capital requirement for current business levels and estimated future business has been assessed as per ICAAP
CAR (Capital Adequacy Ratio) has been worked out based on Basel-I and Basel-II guidelines. CAR is estimated to be above the regulatory minimum level of 9%
Quantitative Disclosures: (` in Crores)
(a) Capital requirements for credit risk:
Portfolios subject to standardised approach : 4418.04
(b) Capital requirements for market risk:
Standardised duration approach : 96.41
(c) Capital requirements for operational risk:
Basic indicator approach : 353.26
Total Capital Requirement at regulatory minimum level of 9% : 4867.71
(d) Total and Tier I capital adequacy ratio : Total CAR : CAR (Tier-I)
::
12.16%9.11%
DF-4 : CREDIT RISK: GENERAL DISCLOSURES: (INCLUDING EQUITIES):
Qualitative Disclosures:
(a) General Qualitative Disclosures
Definitions of “Impaired Assets”: Bank is following extant RBI definitions of these categories. (The definitions used i.
are given in Appendix-II).
Credit Risk Management:ii.
Risk Governance Structure is in place (organization chart as per Appendix-VI).
Credit Risk Management Committee and Risk Management Committee of the Board are the principal
committees that review credit risk management
Following Board-approved policies with regard to credit risk are in place:
n Credit Risk Management and Loan Policy
n Credit Risk Mitigation & Collateral Management Policy
n Stress Testing Policy
Bank’s policies take into account the need for better credit risk management and avoidance of risk
concentration
Policies are reviewed periodically.
Exposure limits for Single Borrower, Group Entities, different categories of borrowers, specific industry /sector,
etc. have been stipulated.
Specific norms and guidelines for appraisal and sanction, documentation, inspection and monitoring, renewal,
maintenance, rehabilitation and management of assets have been stipulated in the Credit Risk Management
and Loan Policy, with provision of adequate leg room for innovation and deviation permissible under a proper
authority structure.
Stress test on advances is carried out at quarterly intervals and placed before the CRMC and RMCB for
review.
84
`
58473.68
8331.71
66805.39
$ 9850.75
12817.39
8174.49 30842.63
16386.95 16386.95
114034.97
$
`
( )
• 114034.97
•
( ) III
( )IV
( ) 2119.49
•
•
•
•
•
- 1-2-3
1028.21645.43184.95
46.67214.23
( ) 1303.28
( )3.62%2.27%
85
Quantitative Disclosures:
b) Total Gross Credit Exposures (Fund-Based and Non-Fund based separately), without taking into account the effect of Credit Risk Mitigation techniques, e.g. Collaterals and Netting
(` in Crores)
EXPOSURE AMOUNT TOTAL
FUND-BASED LOANS & ADVANCES 58473.68
OTHER ASSETS 8331.71
(other assets include claims on Govt./RBI, balances with banks, call lendings, inter-office balances, premises, furniture & fixtures and other sundry items)
66805.39
$ NON FUND BASED LETTERS OF CREDIT, BANK GUARANTEES (Gross) 9850.75
FOREIGN EXCHANGE FORWARD CONTRACTS. 12817.39
OTHERS 8174.49 30842.63
(others includes un-utilised limit, underwriting & standby commitments, claims against the bank not acknowledged as debts and other contingent items)
INVESTMENTS (Banking Book only)
16386.95 16386.95
GRAND TOTAL OF CREDIT RISK OUTSTANDING EXPOSURE 114034.97
$ Gross exposure without applying credit conversion factor.
(` in Crores)
(c) Geographic Distribution of Credit Risk Exposure:
• DOMESTIC 114034.97
• OVERSEAS NIL
(d) Industry-wise distribution of outstanding credit risk exposures (Fund-based and Non-Fund-Based): As per Appendix-III
(e) Residual Contractual Maturity Breakdown of Assets & Interest Rate SensitivityAs per Appendix-IV (a), (b), (c) and (d)
(f) Amount of Gross NPAs 2119.49
•
•
•
•
•
Substandard Doubtful 1Doubtful 2Doubtful 3Loss
1028.21645.43184.9546.67
214.23
(g) Net NPAs 1303.28
(h) NPA RatiosGross NPA to Gross AdvancesNet NPA to Net Advances
3.62%2.27%
86
( )
)
1651.471627.881159.862119.49
( )
705.05561.72
450.55-
816.21
( ) 0.00
( ) 0.00
( )
23.137.60
13.940.00
16.79
5( )
I
IRA
II.
III
(i)
(ii)
(iii)
87
(i) Movement of Gross NPAs
Opening balance (as on 01.04.2012)Additions Reductions Closing balance (as on 31.03.2013)
1651.471627.881159.862119.49
(j) Movement of NPA Provisions:
Opening balance (01.04.2012)Provisions made during the period
705.05561.72
Write-offs during the periodWrite-back of excess provisions during the periodClosing balance (31.03.2013)
450.55-
816.21
(k) Amount of Non-Performing Investments (gross) Banking Book 0.00
(l) Amount of Provisions held for Non- Performing Investments (Banking Book) 0.00
(m) Movement of provision for depriciation on investments (Banking Book)Opening Balance NPI Provisions(01.04.2012)Provisions held for Depreciation/Additional Provisions made during the periodWrite offsWrite-back of excess provisions Closing Balance (31.03.2013)
23.137.60
13.940.00
16.79
DF-5 CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO STANDARDISED APPROACH:
Qualitative Disclosures:
5(a) Qualitative Disclosures Remarks
I Names of credit rating agencies used
Domestic Credit Rating Agencies: CRISIL, ICRA, CARE, India Ratings, Brickwork Rating and SME Rating Agency of India Ltd. (SMERA)
International Rating Agencies (IRA):FITCH, Moody’s and S& P
II. Changes, if any, since prior period disclosures in the identified rating agencies and reasons for the same
Two new domestic credit rating agencies viz. Brickwork Rating and SME Rating Agency of India Ltd. (SMERA), which were recognized by RBI were added
III Types of exposures for which each agency used/ to be used
Ratings done by the identified rating agency are to be used for various types of exposures as follows:
(i) For exposures with a contractual maturity of less than or equal to one year (except Cash Credit, Overdraft and other Revolving Credits), Short-term Ratings will be applicable.
(ii) For domestic Cash Credit, Overdraft and other Revolving Credits (irrespective of the period) and for Long Term exposures of over 1 year, Long Term Ratings will be applicable.
(iii) For overseas exposures, irrespective of the contractual maturity, Long Term Ratings given by IRAs will be applicable.
88
IV
(i)
(ii)
`
l 67234.80
l 31211.95
l 10839.98
l 4748.24
(
114034.97
I
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
89
IV Description of the process used to transfer public issue ratings onto comparable assets in the banking book
Long-term issue-specific ratings (our own exposures or other issuance of debt by the same borrower-constituents/counter-party) or issuer (borrower-constituents/ counter-party) ratings can be applied to other unrated exposures of the same borrower-constituents/ counter-party in the following cases:
(i) If the issue-specific rating or issuer rating maps to a risk weight equal to or higher than the unrated exposures any other un-rated exposure on the same counter-party will be assigned the same risk weight, if the exposure ranks pari-passu or junior to the rated exposure in all respects.
(ii) In cases where the borrower-constituent/ counter-party has issued a debt (which is not a borrowing from our Bank), the rating given to that debt may be applied to Bank’s unrated exposures if the Bank’s exposure ranks pari-passu or senior to the specific rated debt in all respects and the maturity of Bank’s unrated exposures are not later than maturity of rated debt.
Quantitative Disclosures:
The exposure amount after Risk Mitigation subject to Standardised Approach i.e. amount of outstanding (rated and unrated
taken together) in different risk-buckets as well as the amount that are deducted, if any:
(` in Crore)
Below 100 % Risk Weight : 67234.80
@100% Risk Weight: 31211.95
More than 100% Risk weight: 10839.98
Amount Deducted, if any: 4748.24
(credit risk mitigation including from staff)
TOTAL 114034.97
DF-6 CREDIT RISK MITIGATION: DISCLOSURES FOR STANDARDISED APPROACH:
(a) General Qualitative Disclosures:
I Policies and Processes for Collateral Valuation and Management
A Credit Risk Mitigation and Collateral Management Policy, addressing the Bank’s approach towards the credit risk
mitigants used for capital calculation is in place. The objective of this Policy is to enable classification and valuation of
credit risk mitigants in a manner that allows regulatory capital adjustment to reflect them.
The Policy adopts the Comprehensive Approach, which allows full offset of collateral (after appropriate haircuts) against
exposures, by effectively reducing the exposure amount by the value ascribed to the collateral. The following issues are
addressed in the Policy:
(i) Classification of credit risk mitigants
(ii) Acceptable credit risk mitigants
(iii) Documentation and legal process requirements for credit risk mitigants
(iv) Valuation of collateral
(v) Custody of collateral
(vi) Insurance
(vii) Monitoring of credit risk mitigants
90
II
i) (i)
(ii) Notionally Convert
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
l
NAV
l II(i)
ii)
iii)
91
II Main types of credit risk management techniques:
S.No. Qualitative Disclosures
Remarks
i) Eligible financial collaterals
(i) Cash (as well as certificates of deposit or comparable instruments, including fixed deposit receipts, issued by the lending bank) on deposit with the Bank
(ii) Gold including both bullion and jewellery. However, the value of the collateralized jewellery is arrived at after notionally converting these to 99.99 % purity.
(iii) Securities issued by Central and State Governments.
(iv) Kisan Vikas Patra and National Savings Certificates for which no lock-in-period is operational and where they can be encashed within the holding period.
(v) Life insurance policies with a declared surrender value of an insurance company which is regulated by an insurance sector regulator.
(vi) Debt securities rated by a recognized Credit Rating Agency in respect of which the Bank is sufficiently confident about the market liquidity, where these are rated
a) at least BBB(-) when issued by public sector entities and by other entities (including banks and Primary Dealers); or
b) at least PR3/P3/F3/A3 for short-term debt instruments.
(vii) Debt securities not rated by a recognized Credit Rating Agency where these are:
a) issued by a bank; and
b) listed on a recognized exchange; and
c) classified as senior debt; and
d) all rated issues of the issuing bank of the same seniority are rated at least BBB(-) or PR3/ P3 / F3 / A3 by a chosen Credit Rating Agency; and
e) there is no information available that suggests that the issue justifies a rating below BBB(-) or PR3/ P3 / F3 / A3 (as applicable) and;
f) Bank is sufficiently confident about the market liquidity of the security.
(viii) Units of Mutual Funds regulated by the securities regulator in the jurisdiction of the Bank’s operation, where:
a price for the units is publicly quoted daily i.e., where the daily NAV is available •
in public domain; and
the mutual fund is limited to investing in the instruments listed in this paragraph, •
para II (i).
ii) On-balance sheet netting
Where the Bank
a) has a well-founded legal basis for concluding that the netting or offsetting agreement is enforceable in each relevant jurisdiction regardless of whether the counter-party is insolvent or bankrupt;
b) is able at any time to determine the loans/advances and deposits with the same counter-party that are subject to the netting agreement; and
c) monitors and controls the relevant exposures on a net basis,
iii) Guarantees Where guarantees are direct, explicit, irrevocable and unconditional and satisfy the operational requirements detailed in the RBI guidelines
92
III
(i)
(ii)
IV
V
l `
l (Leverage)
l SPV
l
l
n
n
l
l
l
93
III Main types of guarantor counter-party and their creditworthiness:
Range of eligible guarantors (counter-guarantors):
i) Sovereigns, sovereign entities (including BIS, IMF, European Central Bank and European Community as well as
MDBs referred to in RBI guidelines, ECGC and CGTSI), banks and primary dealers with a lower risk weight than the
counter-party;
(ii) Other entities rated AA(-) or better. These include guarantee cover provided by parent, subsidiary and affiliate
companies that have a lower risk weight than the obligor. The rating of the guarantor should be an entity rating
which has factored in all the liabilities and commitments (including guarantees) of the entities.
IV Information about (credit or market) risk concentration within the mitigation taken:
As per Appendix V
Quantitative Disclosures:
(b) For each separately disclosed credit risk portfolio the total exposure (after, where applicable, on-or off balance sheet
netting) that is covered by eligible financial collateral after the application of haircuts.
Eligible Financial Collateral after haircuts (excl. Staff loans): • ` 4748.24 crores
(c) For each separately disclosed portfolio the total exposure (after, where applicable, on-or off-balance sheet netting) that
is covered by guarantees/credit derivatives (whenever specifically permitted by RBI): NIL
DF-7 SECURITISATION: DISCLOSURE FOR STANDARDISED APPROACH
Qualitative Disclosures
Bank's objective in relation to Securitisation activity is to achieve improvements in leverage ratios, asset performance
& quality and to achieve desirable investment & maturity characteristics.
Loss on sale on transfer of assets to Special Purpose Vehicle (SPV) shall be recognized upfront by the Bank.
Bank shall amortize the profit on sale of the securitised assets over the life of the Pass Through Certificates (PTC)
assets issued or to be issued by SPV.
Quantitative Disclosures:
a) Banking Book: The amount of exposure securitized: NIL
b) Trading Book: The amount of exposure securitized which is subject to market risk: NIL
DF-8 MARKET RISK IN TRADING BOOK
Qualitative Disclosures:
The following portfolios are covered by the Standardised Duration approach for calculation of Market Risk:
n Securities held under the Held for Trading (HFT) and Available for Sale (AFS) categories.
n Derivatives entered into for hedging HFT & AFS securities and Derivatives entered into for Trading.
Board approved Trading Policies, Investment Policy, Market Risk Management Policy with defined market risk management parameters for various asset classes are in place.
Market Risk Management Department and Mid-Office are responsible for identification, assessment, monitoring and reporting of market risk in treasury operations.
Risk monitoring is an on-going process with the position reported to the top management, Market Risk Management Committee and Risk Management Committee of the Board at stipulated intervals.
94
l
l VaR
l
Exception Reports
`
l : 60.73
l : 34.33
l : 1.35
: 96.41
l
l
1)
2)
3)
4)
5)
l
l
l
: ` 353.26
95
No Derivatives have been entered into for AFS securities or Trading.
Risk management and reporting is based on parameters such as Modified Duration, PVO1, Exposure and Gap Limits,
VaR, etc.,
Forex Open Position limits (Daylight / Overnight), deal-wise cut-loss limits stop-loss limit, Profit / Loss in respect of cross
currency trading are properly monitored and exception reporting is regularly carried out.
Quantitative Disclosures:
Capital Requirement for Market Risk under Standardised Duration Approach (@ 9%):
(` in crore)
Interest Rate Risk : 60.73•
Equity Position Risk : 34.33•
Forex Risk : 1.35 •
TOTAL : 96.41
DF-9 OPERATIONAL RISK
Qualitative Disclosures:
Operational Risk Management Policy of the Bank is in place, which establishes a consistent framework for systematic
and proactive identification, assessment, measurement, monitoring and mitigation of operational risk. The policy
applies to all business and functional areas within the Bank. The Operational Risk Management Policy is supplemented
by operational systems, procedures and guidelines which are periodically updated. Operational Risk Management
Committee has been constituted.
Bank has put in place the following measures to control and mitigate operational risks:
Book of instructions, circulars, job cards, training programmes etc. !
Delegation of financial powers at various levels of officers for different type of financial transactions !
Inputs on operational risk are included in the relevant training programmes !
Bank obtains insurance cover for potential operational risks !
A system of prompt submission of reports on frauds is in place !
Risk Control and Self Assessment (RCSA) exercise for identifying and mitigating operational risks has been initiated at
the Bank’s branches and Zonal Offices.
A web-based application has been developed and rolled out for automatic collation of responses in different RCSA
workshops to facilitate generation of Zone-wise, Business Segment-wise and Whole-Bank-level heat-maps.
Disaster Recovery Policy and Business Continuity Planning Policy have been put into place
Quantitative Disclosures:
Capital Charge on Operational Risk : ` 353.26 crores (As per minimum regulatory capital requirement)
96
IRRBB
l
l
l
II
II
l
(i)
`
%(ii) MVE
`
`
97
DF-10 INTEREST RATE RISK IN BANKING BOOK (IRRBB)
Qualitative Disclosures:
Earning at Risk (EaR) is measured as per ALM guidelines of RBI using Traditional Gap Analysis method.
Impact of change in Interest Rates on Market Value of Equity (MVE) is measured using Duration Gap Analysis method, taking whole Balance Sheet, as per RBI guidelines.
MVE is also measured using Duration Gap Analysis method, taking only Banking Book exposures into account as per RBI guidelines on Supervisory Review Process (Pillar-II of Basel-II framework).
Key Assumptions used based on behavioral studies:
a) Saving Bank deposits: 100% of such deposits treated as interest bearing
b) Term deposits: 4% of such deposits prepaid due to embedded option
c) Current deposits: taken as rate sensitive for IRR purpose as per RBI guidelines
d) Term Loans: prepayment @ 0.08% of total term loans
Quantitative Disclosures:
(i) Change in NII:
At the present level of our assets / liabilities, NII is likely to increase / decrease by ` 167.16 crore., if there is a upward / downward movement in interest rate by 1% (assuming parallel interest rate change on both assets and liabilities except Savings Bank rate that will remain constant at 4% ).
(ii) Change in MVE:
e) Taking the whole Balance Sheet into account, Market Value of Equity (MVE) will increase / decrease by `224.67 crore if there is an upward / downward movement in interest rate by 1%.
f) Taking only Banking Book exposures into account, Market Value of Equity (MVE) will increase / decrease by 200.98 crore if there is an upward / downward movement in interest rate by 1%.
98
- I
Complex I II
` : 9.85%
‘AAA’ ‘AAA’
II II
` : 10.25%
‘AAA’
‘AAA ’
II II
` : 9.78%
‘AAA’
‘AAA ’
II
Vanilla
` : 7.20%
‘AAA’
II
Vanilla
` : 7.45%
‘AAA’
‘LAAA’
II
Vanilla
` : 9.15%
‘AAA ’
‘LAAA ’
II
vanilla
` : 9.02%
‘AAA’
‘LAAA’
99
APPENDIX – I
Summary information on the terms and conditions of the main features of all capital instruments, including innovative, complex or hybrid capital instruments eligible for inclusion in Tier-I or Tier-II capital :
Type of Capital Main features
Innovative Perpetual Debt Instruments20.03.2008
Unsecured, non-covertible, subordinated, Perpetual Bonds in the nature of Promissory Notes. Call op-tion and step-up coupon available after 10 years (subject to RBI permission at the time). Other details: Amount: ` 200 cr.Tenor : Perpetual (call option available after 10 years with permission of RBI).Coupon: 9.85% payable annually.Ratings: AAA by CARE and AAA-Stable by CRISIL.
Upper Tier-II Subordinated Bonds22.03.2007
Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the nature of Promissory Notes. Call option is available after 120 months(subject to RBI permission at the time). Other details:Amount : ` 150 crTenor : 180 months maturing on: 22.03.2022Coupon : 10.25% (fixed, payable annually)Rating : CARE ‘AAA’ and CRISIL ‘AAA/Stable’
Upper Tier-II Subordinated Bonds15.10.2007
Type of Instrument : Unsecured, redeemable, non-convertible Subordinated Upper Tier-II Bonds in the nature of Promissory Notes. Call option is available after 120 months(subject to RBI permission at the time). Other details:Amount : ` 300 crTenor : 180 months maturing on: 15.10.2022Coupon : 9.78% (fixed, payable annually)Rating : CARE ‘AAA’ and CRISIL ‘AAA/Stable’
Lower Tier-II Subordinated Bonds(Third Series)21.02.2005
Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Prom-issory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 200 crTenure : 111 months maturing on: 21.05.2014Coupon : 7.20% (fixed, payable annually)Rating : ‘AAA’ by CRISIL
Lower Tier-II Subordinated Bonds(Fourth Series) 17.11.2005
Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 300 crTenure : 111 months maturing on: 17.02.2015Coupon : 7.45% (fixed, payable annually)Rating : ‘AAA’ by CRISIL and ‘LAAA’ by ICRA
Lower Tier-II Subordinated Bonds (Fifth Series)10.08.2006
Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 500 crTenure : 120 months maturing on: 10.08.2016Coupon : 9.15% (fixed, payable annually)Rating : AAA/Stable (CRISIL) LAAA (Stable) (ICRA)
Lower Tier-II Subordinated Bonds 20.03.2012
Type of instrument : Unsecured, redeemable, non-convertible subordinated bonds in the nature of Promissory Note. These are plain vanilla bonds with no special features like put or call option.Other details: Amount : ` 500 crTenure : 120 months maturing on: 20.03.2022Coupon : 9.02% (fixed, payable annually)Rating : ‘AAA’ by CRISIL and ‘LAAA’ by ICRA
100
- II
`
101
APPENDIX - II
DEFINITIONS OF IMPAIRED ASSETS
Non-performing assets
An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.
Non-Performing Asset (NPA) is a loan or an advance where:
Interest and/ or installments of principal remain overdue for a period of more than 90 days in respect of a Term Loan,
The account remains ‘out of order’, in respect of an Overdraft/ Cash Credit (OD/ CC),
The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,
The installment of principal or interest thereon remains overdue for two crop seasons for short duration crops,
The installment of principal or interest thereon remains overdue for one crop seasons for long duration crops,
The amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.
In respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.
In case the interest due & charged during any quarter is not serviced fully within 90 days from the end of the quarter the account is classified as NPA
'Out of order' status
An account is treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/ drawing power. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/ drawing power, but either there are no credits continuously for 90 days in the account as on the date of balance sheet or the credits are not enough to cover the interest debited during the same period, these accounts are also treated as ‘out of order’.
Overdue
Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank.
102
- III
(` )
1 193.85 160.30 33.55 173.89
2 999.53 942.98 56.55 51.30
3 3946.20 3620.72 325.48 1093.80
4 1019.94 1019.08 0.86 197.67
5 2091.16 2077.01 14.15 1146.45
5.1 1065.39 1062.20 3.18 383.79
6 2726.46 2726.46 0.00 496.29
7 1883.69 1864.60 19.09 126.49
8 11.29 10.14 1.15 129.89
9 1683.04 1626.15 56.89 177.14
10 65.00 64.97 0.03 2.95
11 3.77 3.76 0.01 0.00
12 1101.68 1093.48 8.2 131.19
13 409.96 408.13 1.83 469.61
14 39.66 19.58 20.08 0.51
15 419.49 388.94 30.55 185.16
16 811.16 798.02 13.14 312.42
17 2519.87 2440.62 79.25 209.51
17.1 647.34 642.44 4.9 1.09
17.2 4.73 4.73 0 0.55
17.3 264.01 213.49 50.52 44.23
18 667.13 665.59 1.54 93.13
19 59.14 53.54 5.6 25.93
20 802.95 790.92 12.03 367.53
21 78.11 77.27 0.84 10.52
22 118.71 118.68 0.03 555.18
23 586.23 584.49 1.74 89.99
24 0.00 0.00 0.00 0.00
25 4311.59 4172.56 139.03 1031.71
25.1 1900.36 1824.11 76.24 411.75
25.2 124.10 124.09 0.01 79.32
25.3 2113.99 2056.04 57.95 169.50
26 701.81 671.77 30.04 86.08
27 3369.33 3369.15 0.18 28.93
28 27852.93 26585.28 1267.65 2657.47
24718.66 24718.66 0.00 20991.88
83192.34 81072.85 2119.49 30842.63
103
APPENDIX-III
INDUSTRY-WISE DISTRIBUTION OF EXPOSURES - FUND BASED & NON-FUND BASED
(` in crores)
CODE INDUSTRY FUND BASED OUTSTANDING
STANDARD ASSETS
NON PERFORMING
ASSETS
NON-FUND BASED
OUTSTANDING
1 COAL 193.85 160.30 33.55 173.89
2 MINING 999.53 942.98 56.55 51.30
3 IRON & STEEL 3946.20 3620.72 325.48 1093.80
4 OTHER METAL & METAL PRODUCTS 1019.94 1019.08 0.86 197.67
5 ALL ENGINEERING 2091.16 2077.01 14.15 1146.45
5.1 (OF WHICH ELECTRONICS) 1065.39 1062.20 3.18 383.79
6 ELECTRICITY 2726.46 2726.46 0.00 496.29
7 COTTON TEXTILES 1883.69 1864.60 19.09 126.49
8 JUTE TEXTILES 11.29 10.14 1.15 129.89
9 OTHER TEXTILES 1683.04 1626.15 56.89 177.14
10 SUGAR 65.00 64.97 0.03 2.95
11 TEA 3.77 3.76 0.01 0.00
12 FOOD PROCESSING 1101.68 1093.48 8.2 131.19
13 VEGETABLE OILS & VANASPATI 409.96 408.13 1.83 469.61
14 TOBACCO & TOBACCO PRODUCTS 39.66 19.58 20.08 0.51
15 PAPER & PAPER PRODUCTS 419.49 388.94 30.55 185.16
16 RUBBER & RUBBER PRODUCTS 811.16 798.02 13.14 312.42
17 CHEMICALS,DYES, PAINTS ETC 2519.87 2440.62 79.25 209.51
17.1 OF WHICH FERTILISERS 647.34 642.44 4.9 1.09
17.2 OF WHICH PETRO-CHEMICALS 4.73 4.73 0 0.55
17.3 OF WHICH DRUGS & PHARMACEUTICALS 264.01 213.49 50.52 44.23
18 CEMENT 667.13 665.59 1.54 93.13
19 LEATHER & LEATHER PRODUCTS 59.14 53.54 5.6 25.93
20 GEMS & JEWELLERY 802.95 790.92 12.03 367.53
21 CONSTRUCTIONS 78.11 77.27 0.84 10.52
22 PETROLEUM 118.71 118.68 0.03 555.18
23 AUTOMOBILES INCULDING TRUCKS 586.23 584.49 1.74 89.99
24 COMPUTER SOFTWARE 0.00 0.00 0.00 0.00
25 INFRASTRUCTURE 4311.59 4172.56 139.03 1031.71
25.1 OF WHICH POWER (excl ELECTRICITY at 6) 1900.36 1824.11 76.24 411.75
25.2 OF WHICH TELECOMMUNICATIONS 124.10 124.09 0.01 79.32
25.3 OF WHICH ROAD & PORTS 2113.99 2056.04 57.95 169.50
26 OTHER INDUSTRIES 701.81 671.77 30.04 86.08
27 NBFC 3369.33 3369.15 0.18 28.93
28 OTHERS ADVANCES 27852.93 26585.28 1267.65 2657.47
29 OTHER ASSETS (INCLUDING BANKING BOOK) 24718.66 24718.66 0.00 20991.88
TOTAL CREDIT EXPOSURE 83192.34 81072.85 2119.49 30842.63
104
- IV ( )
(` )
1
2-7 8-14 1-14 15-28 29
3
>3-6 >6-12 >1-3 >3-5 > 5
1. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00
2. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14
3. 77.77 924.42 890.69 1892.88 597.35 7267.95 3305.63 3482.13 25480.89 15241.70 14657.44 71925.97
(I) 22.06 132.37 154.43 308.86 0.00 0.00 0.00 0.00 1853.17 1103.08 1147.20 4412.31
(II) 30.63 183.80 214.44 428.87 0.00 0.00 0.00 0.00 9220.67 5360.85 6433.02 21443.41
(III) 25.08 608.25 326.92 960.25 351.11 2280.25 1625.17 2263.21 14407.05 8777.77 7077.22 37742.03
(IV) 0.00 0.00 194.90 194.90 246.24 4987.70 1680.46 1218.92 0.00 0.00 0.00 8328.22
4. 2100 0 0 2100 0 0 630 0 708 500 1150 5087
(I) 2099.61 0.00 0.00 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61
(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) 0.00 0.00 0.00 0.00 0.00 0.00 630.00 0.00 207.85 0.00 0.00 837.85
(IV) I II 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00 1150.00 2150.00
5. 45.57 79.90 98.24 223.71 98.51 318.53 378.62 218.28 1178.64 41.84 81.33 2539.46
(I) 9.76 58.58 68.34 136.68 91.12 0.00 0.00 0.00 911.24 0.00 0.00 1139.04
(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) 5.03 4.91 6.13 16.07 7.39 308.33 47.09 18.14 186.41 24.40 44.02 651.85
(IV) 30.78 16.41 23.77 70.96 0.00 10.20 331.53 200.14 80.99 17.44 37.31 748.57
6. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7.
0.35 2.10 2.45 4.90 4.89 19.57 19.57 146.80 0.00 0.00 0.00 195.73
8 1.73 10.36 12.08 24.17 24.17 24.17 39.60 8.75 0.00 0.00 0.00 120.86
9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10. (DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11. 66.48 375.36 61.81 503.65 452.61 2590.68 1669.22 1110.62 11.54 0.00 0.00 6338.32
12. 0.83 9.87 9.51 20.21 6.38 77.60 35.29 37.18 272.06 162.74 156.50 767.96
13. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2292.34 1402.01 1074.78 4769.13 1183.91 10298.50 6077.93 5003.76 27650.98 15946.28 20809.41 91739.90
2292.34 3694.35 4769.13 4769.13 5953.04 16251.54 22329.47 27333.23 54984.21 70930.49 91739.90
105
APPENDIX - IV (a)
STATEMENT OF STRUCTURAL LIQUIDITY AS ON 31.03.2013
Sub-Total Residual Maturity (` in crore)
OUTFLOWS Day 12-7
Days8-14 DAYS
1-14 days15-28 DAYS
29D-3-MTHS.
>3-6 MTHS.
>6-12 MTHS.
>1-3 YEARS
>3-5 YEARS
> 5 YEARS
TOTAL
1. CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00
2. RESERVES AND SURPULS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14
3. DEPOSITS 77.77 924.42 890.69 1892.88 597.35 7267.95 3305.63 3482.13 25480.89 15241.70 14657.44 71925.97
(I) CURRENT DEPOSITS 22.06 132.37 154.43 308.86 0.00 0.00 0.00 0.00 1853.17 1103.08 1147.20 4412.31
(II) SAVINGS BANK DEPOSITS 30.63 183.80 214.44 428.87 0.00 0.00 0.00 0.00 9220.67 5360.85 6433.02 21443.41
(III) TERM DEPOSITS 25.08 608.25 326.92 960.25 351.11 2280.25 1625.17 2263.21 14407.05 8777.77 7077.22 37742.03
(IV) CERTIFICATE OF DEPOSITS 0.00 0.00 194.90 194.90 246.24 4987.70 1680.46 1218.92 0.00 0.00 0.00 8328.22
4. BORROWINGS 2100 0 0 2100 0 0 630 0 708 500 1150 5087
(I) CALL AND SHORT NOTICE 2099.61 0.00 0.00 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61
(II) INTER-BANK(TERM) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) REFINANCES 0.00 0.00 0.00 0.00 0.00 0.00 630.00 0.00 207.85 0.00 0.00 837.85
(IV) OTHERS (Tier I&II Bonds) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 500.00 1150.00 2150.00
5.OTHER LIABILITIES AND PROV. 45.57 79.90 98.24 223.71 98.51 318.53 378.62 218.28 1178.64 41.84 81.33 2539.46
(I) BILLS PAYABLE 9.76 58.58 68.34 136.68 91.12 0.00 0.00 0.00 911.24 0.00 0.00 1139.04
(II) INTER-OFFICE ADJUST-MENTS
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) PROVISIONS 5.03 4.91 6.13 16.07 7.39 308.33 47.09 18.14 186.41 24.40 44.02 651.85
(IV) OTHERS (currency Trans., Adjusting others, Asso. Bank Trans. etc.)
30.78 16.41 23.77 70.96 0.00 10.20 331.53 200.14 80.99 17.44 37.31 748.57
6. LINES OF CREDIT COMMITTED TO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(I) INSTITUTIONS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(II) CUSTOMERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7. UNAVAILED PORTION OF CASH
0.35 2.10 2.45 4.90 4.89 19.57 19.57 146.80 0.00 0.00 0.00 195.73
8 LCs/BGs 1.73 10.36 12.08 24.17 24.17 24.17 39.60 8.75 0.00 0.00 0.00 120.86
9.REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10.BILLS REDISCOUNTED(DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11. SWAPS(BUY/SELL)/ MATURING FORWARDS
66.48 375.36 61.81 503.65 452.61 2590.68 1669.22 1110.62 11.54 0.00 0.00 6338.32
12.INTEREST PAYABLE 0.83 9.87 9.51 20.21 6.38 77.60 35.29 37.18 272.06 162.74 156.50 767.96
13. OTHERS(SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A. TOTAL OUTFLOWS 2292.34 1402.01 1074.78 4769.13 1183.91 10298.50 6077.93 5003.76 27650.98 15946.28 20809.41 91739.90
Cumulative out flows 2292.34 3694.35 4769.13 4769.13 5953.04 16251.54 22329.47 27333.23 54984.21 70930.49 91739.90
106
- IV ( )
(` )
1 2-7 8-14 1-14 15-28 29
3
>3-6 >6-12 >1-3 >3-5 > 5
1. 353.00 0.00 0.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00
2. 2883.64 37.56 36.19 2957.39 24.27 295.30 134.31 141.48 1035.30 619.28 595.53 5802.86
3. 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85
(i) 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85
(ii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. 17.37 58.00 24.28 99.65 98.94 1709.99 824.42 151.56 4194.05 5250.27 7833.80 20162.68
5. 892.37 871.43 1087.10 2850.90 1311.88 1867.57 2144.89 3218.03 33067.04 4328.71 6591.37 55380.39
(i)
445.78 116.02 174.89 736.69 139.63 392.68 129.88 1.30 0.00 1.19 0.05 1401.42
(ii) 36.33 217.96 254.29 508.58 254.29 0.00 0.00 0.00 24665.72 0.00 0.00 25428.59
(iii) 410.26 537.45 657.92 1605.63 917.96 1474.89 2015.01 3216.73 8401.32 4327.52 6591.32 28550.38
(iv) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 825.39 477.89 1303.28
7. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32
8. 321.52 343.19 55.73 720.44 1.37 162.90 0.00 36.76 38.30 2.01 28.62 990.40
(i)
0.00 275.13 0.00 275.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13
(ii) 321.52 68.06 55.73 445.31 1.37 162.90 0.00 36.76 38.30 2.01 28.62 715.27
9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10. 0.01 438.13 0.50 438.64 354.37 3629.74 1772.87 1145.70 0.00 0.00 0.00 7341.32
11. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12. 0.00 0.00 0.00 0.00 0.00 334.32 432.35 0.00 0.00 0.00 0.00 766.67
13. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
14. (Devolvable
LCs/BGs) 0.00 0.00 0.00 0.00 24.17 24.17 24.17 39.60 8.75 0.00 0.00 120.86
15. 2013.52 0.00 0.00 2013.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2013.52
6512.28 1748.31 1203.80 9464.39 1815.00 8023.99 5333.01 4733.13 38343.44 11025.66 15758.53 94497.15
4219.94 346.30 129.02 4695.26 631.09 -2274.51 -744.92 -270.63 10692.46 -4920.62 -5050.88
4219.94 4566.24 4695.26 4695.26 5326.35 3051.84 2306.92 2036.29 12728.75 7808.13 2757.25
%184% 25% 12% 98% 53% -22% -12% -5% 39% -31% -24%
%184% 124% 98% 98% 89% 19% 10% 7% 23% 11% 3%
@ @ @ @ @ -50% -50% -60% -60% -60% -60%
-5%* -10%* -15%* -15%* -20%* -30% -30% -30% -30% -30% -30%
107
APPENDIX - IV (b)
STATEMENT OF STRUCTURAL LIQUIDITY
Sub-Total Residual Maturity (` in crore)
INFLOWS Day 1 2-7 Days8-14 DAYS
1-14 days
15-28 DAYS
29D-3-MTHS.
>3-6 MTHS.
>6-12 MTHS.
>1-3 YEARS
>3-5 YEARS
> 5 YEARS
TOTAL
1 CASH 353.00 0.00 0.00 353.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00
2. BALANCES WITH RBI 2883.64 37.56 36.19 2957.39 24.27 295.30 134.31 141.48 1035.30 619.28 595.53 5802.86
3. BALANCES WITH OTHER BANKS
30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85
(i) CURRENT ACCOUNT 30.85 0.00 0.00 30.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85
(ii) MONEY AT CALL AND SHORT/TERM/PLACE-MENT
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. INVESTMENTS (INCLUDING REPOS)
17.37 58.00 24.28 99.65 98.94 1709.99 824.42 151.56 4194.05 5250.27 7833.80 20162.68
5. ADVANCES (PERFORMING) 892.37 871.43 1087.10 2850.90 1311.88 1867.57 2144.89 3218.03 33067.04 4328.71 6591.37 55380.39
(i) BILLS PURCHASED AND DISCTD
445.78 116.02 174.89 736.69 139.63 392.68 129.88 1.30 0.00 1.19 0.05 1401.42
(ii) CASH CREDITS, OVERDRAFTS,DEMAND LOAN
36.33 217.96 254.29 508.58 254.29 0.00 0.00 0.00 24665.72 0.00 0.00 25428.59
(iii) TERM LOANS 410.26 537.45 657.92 1605.63 917.96 1474.89 2015.01 3216.73 8401.32 4327.52 6591.32 28550.38
(iv) Rceivable under Agr Debt Relief
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6. NPAs (ADVANCES) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 825.39 477.89 1303.28
7. FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32
8. OTHER ASSETS 321.52 343.19 55.73 720.44 1.37 162.90 0.00 36.76 38.30 2.01 28.62 990.40
(i) INTER OFFICE ADJ.(IBIT,clearing a/c, ATM)
0.00 275.13 0.00 275.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13
(ii) OTHERS (Suspence A/c, Br. Sys. Susp. etc)
321.52 68.06 55.73 445.31 1.37 162.90 0.00 36.76 38.30 2.01 28.62 715.27
9. REVERSE REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10. SWAPS (SELL/BUY)/ 0.01 438.13 0.50 438.64 354.37 3629.74 1772.87 1145.70 0.00 0.00 0.00 7341.32
11. BILLS REDISCOUNTED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12. INTEREST RECEIVABLE 0.00 0.00 0.00 0.00 0.00 334.32 432.35 0.00 0.00 0.00 0.00 766.67
13. COMMITTED LINES OF CREDIT
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
14 (A) OTHERS (Devolvable LCs/BGs)
0.00 0.00 0.00 0.00 24.17 24.17 24.17 39.60 8.75 0.00 0.00 120.86
15. Export Refinance Limit 2013.52 0.00 0.00 2013.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2013.52
B. TOTAL INFLOWS 6512.28 1748.31 1203.80 9464.39 1815.00 8023.99 5333.01 4733.13 38343.44 11025.66 15758.53 94497.15
C. MISMATCH (B-A) 4219.94 346.30 129.02 4695.26 631.09 -2274.51 -744.92 -270.63 10692.46 -4920.62 -5050.88
D. CUMULATIVE MISMATCH 4219.94 4566.24 4695.26 4695.26 5326.35 3051.84 2306.92 2036.29 12728.75 7808.13 2757.25
E. C AS % TO A 184% 25% 12% 98% 53% -22% -12% -5% 39% -31% -24%
F. D AS % TO CUMULATIVE OUTFLOWS
184% 124% 98% 98% 89% 19% 10% 7% 23% 11% 3%
Prudential Level for mismatch @ @ @ @ @ -50% -50% -60% -60% -60% -60%
Prudential Level for cumulative mismatch
-5%* -10%* -15%* -15%* -20%* -30% -30% -30% -30% -30% -30%
@ RBI has prescribed cumulative mismatch limits as -5%, -10%, -15% and -20% for Day-1, 2-7 days, 8-14 days and 15 - 28 days respectively against the earlier indivisual limit of (-) 20% each for 1 to 14 days and 15 to 28 days buckets.* Figures in italics indicate limits prescribed by RBI.
108
- IV ( )
`
1-28 29 - 3 >3-6 >6-12 >1-3 >3-5 > 5
1. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00
2. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14
3. 3442.15 9142.76 27362.02 10541.97 10473.74 4270.67 2280.35 4412.31 71925.97
(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4412.31 4412.31
(II) 0.00 0.00 21443.41 0.00 0.00 0.00 0.00 0.00 21443.41
(III) 3001.01 4155.06 4238.15 9323.05 10473.74 4270.67 2280.35 0.00 37742.03
(IV) 441.14 4987.70 1680.46 1218.92 0.00 0.00 0.00 0.00 8328.22
4. 2099.61 0.00 630.00 0.00 207.85 0.00 0.00 2150.00 5087.46
(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(II) 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61
(III) 0.00 0.00 630.00 0.00 207.85 0.00 0.00 0.00 837.85
(IV) I II0.00 0.00 0.00 0.00 0.00 0.00 0.00 2150.00 2150.00
5. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2539.46 2539.46
(I) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1139.04 1139.04
(II) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 651.85 651.85
(IV) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 748.57 748.57
6. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7. DUPN 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8. 956.26 2590.68 1669.22 1110.62 11.54 0.00 0.00 0.00 6338.32
26.59 77.60 35.29 37.18 272.06 162.74 156.50 0.00 767.96
9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6524.61 11811.04 29696.53 11689.77 10965.19 4433.41 2436.85 13865.91 91423.31
109
APPENDIX - IV (c)
STATEMENT OF INTEREST RATE SENSITIVITY
Residual Maturity (` in crore)
LIABILITIES 1-28 Days 29D-3MTHS>3-6 MTHS
>6-12 MTHS
>1-3 YEARS
>3-5 YEARS
> 5 YEARS N-SENSITIVE TOTAL
1. CAPITAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00 70.00
2. RESERVES AND SURPULS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4694.14 4694.14
3. DEPOSITS 3442.15 9142.76 27362.02 10541.97 10473.74 4270.67 2280.35 4412.31 71925.97
(I) CURRENT DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4412.31 4412.31
(II) SAVINGS BANK DEPOSITS 0.00 0.00 21443.41 0.00 0.00 0.00 0.00 0.00 21443.41
(III) TERM DEPOSITS 3001.01 4155.06 4238.15 9323.05 10473.74 4270.67 2280.35 0.00 37742.03
(IV) CERTIFICATE OF DEPOSITS 441.14 4987.70 1680.46 1218.92 0.00 0.00 0.00 0.00 8328.22
4. BORROWINGS 2099.61 0.00 630.00 0.00 207.85 0.00 0.00 2150.00 5087.46
(I) CALL AND SHORT NOTICE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(II) INTER-BANK(TERM) 2099.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2099.61
(III) REFINANCES 0.00 0.00 630.00 0.00 207.85 0.00 0.00 0.00 837.85
(IV) OTHERS (Tier I&II Bonds) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2150.00 2150.00
5. OTHER LIABILITIES AND PROV. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2539.46 2539.46
(I) BILLS PAYABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1139.04 1139.04
(II) INTER-OFFICE ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(III) PROVISIONS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 651.85 651.85
(IV) OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 748.57 748.57
6. REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7. BILLS REDISCOUNTED(DUPN) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8. SWAPS(BUY/SELL)/ 956.26 2590.68 1669.22 1110.62 11.54 0.00 0.00 0.00 6338.32
INTEREST PAYABLE 26.59 77.60 35.29 37.18 272.06 162.74 156.50 0.00 767.96
9. OTHERS(SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A. TOTAL LIABILITIES 6524.61 11811.04 29696.53 11689.77 10965.19 4433.41 2436.85 13865.91 91423.31
110
- IV ( )
`
1-28 29 -
3
>3-6 >6-12 >1-3 >3-5 > 5
1. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 353.00
2. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5802.86 5802.86
3. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85
3.1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85
3.2
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. 98.94 1709.99 824.42 151.56 4231.61 5245.42 7681.86 218.88 20162.68
4. 0.00 0.00 0.00 0.00 3578.84 5185.44 7551.61 71.06 16386.95
5. 3421.16 1868.27 45083.85 389.84 1013.62 537.18 979.59 1891.15 55184.66
(i) 876.32 392.68 129.88 1.30 0.00 1.19 0.05 0.00 1401.42
(ii) 21.25 0.70 23078.87 6.48 15.76 21.99 196.66 1891.15 25232.86
(iii) 2523.59 1474.89 21875.10 382.06 997.86 514.00 782.88 0.00 28550.38
(iv) Receivable under Agr Debt
Relief 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6. 0.00 0.00 0.00 0.00 0.00 825.39 477.89 0.00 1303.28
7. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32
8. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 990.40 990.4
(i) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13 275.13
(ii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 715.27 715.27
9. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10. 793.01 3629.74 1772.87 1145.70 0.00 0.00 0.00 0.00 7341.32
11. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12. 0.00 334.32 432.35 0.00 0.00 0.00 0.00 0.00 766.67
13. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
14. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4313.11 7542.32 48113.49 1687.10 5245.23 6607.99 9139.34 9518.46 92167.04
-2211.50 -4268.72 18416.96 -10002.67 -5719.96 2174.58 6702.49 -4347.45
-2211.50 -6480.22 11936.74 1934.07 -3785.89 -1611.31 5091.18 743.73
% -51% -57% 38% -593% -109% 33% 73% -46%
% -51% -55% 20% 3% -6% -2% 6% 1%
% -2.68% -5.16% 22.28% -12.10% -6.92% 2.63% 8.11% -5.26%
35% 35% 35% 30% 30% 30% 30%
111
RESIDUAL MATURITY (` in crore)
ASSETS 1-28 DAYS29D-3-MTHS
>3-6 MTHS
>6-12 MTHS
>1-3 YEARS
>3-5 YEARS
> 5 YEARS N-SENSITIVE TOTAL
1. CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353.00 353.00
2. BALANCES WITH RBI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5802.86 5802.86
3. BALANCES WITH OTHER BANKS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85
3.1 CURRENT ACCOUNT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30.85 30.85
3.2 MONEY AT CALL AND SHORT NOTICE, TERM DEPOSITS
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NOTICE, TERM DEPOSITS AND OTHER PLACEMENTS
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. INVESTMENTS (INCLUDING REPOS BUT EXCLUDING REV. REPOS
98.94 1709.99 824.42 151.56 4231.61 5245.42 7681.86 218.88 20162.68
4. A OUT of WHICH HELD TO MATURITY 0.00 0.00 0.00 0.00 3578.84 5185.44 7551.61 71.06 16386.95
5. ADVANCES (PERFORMING) 3421.16 1868.27 45083.85 389.84 1013.62 537.18 979.59 1891.15 55184.66
(i) BILLS PURCHASED & DISCOUNTED 876.32 392.68 129.88 1.30 0.00 1.19 0.05 0.00 1401.42
(ii) CASH CREDITS,OVERDRAFTS & DEMAND LOANS
21.25 0.70 23078.87 6.48 15.76 21.99 196.66 1891.15 25232.86
(iii) TERM LOANS 2523.59 1474.89 21875.10 382.06 997.86 514.00 782.88 0.00 28550.38
(iv) Receivable under Agr Debt Relief 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6. NPAs (ADVANCES ) 0.00 0.00 0.00 0.00 0.00 825.39 477.89 0.00 1303.28
7. FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 231.32 231.32
8. OTHER ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 990.40 990.4
(i) INTER OFFICE ADJUSTMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 275.13 275.13
(ii) OTHERS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 715.27 715.27
9. REVERSE REPOS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10. SWAPS (SELL/BUY) MATURING FORWARDS
793.01 3629.74 1772.87 1145.70 0.00 0.00 0.00 0.00 7341.32
11. BILLS REDISCOUNTED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12. INTEREST RECEIVABLE 0.00 334.32 432.35 0.00 0.00 0.00 0.00 0.00 766.67
13. COMMITTED LINES OF CREDIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
14. OTHERS (SPECIFY) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
B. TOTAL ASSETS 4313.11 7542.32 48113.49 1687.10 5245.23 6607.99 9139.34 9518.46 92167.04
C. GAP(B-A) -2211.50 -4268.72 18416.96 -10002.67 -5719.96 2174.58 6702.49 -4347.45
D. CUMULATIVE GAP -2211.50 -6480.22 11936.74 1934.07 -3785.89 -1611.31 5091.18 743.73
E. C AS % TO B -51% -57% 38% -593% -109% 33% 73% -46%
F. D AS % TO B -51% -55% 20% 3% -6% -2% 6% 1%
G.C AS % TO TOATL RT.SENS.ASSETS -2.68% -5.16% 22.28% -12.10% -6.92% 2.63% 8.11% -5.26%
Prudential Level for Gap(Not exceed to) 35% 35% 35% 30% 30% 30% 30%
APPENDIX - IV (d)
STATEMENT OF INTEREST RATE SENSITIVITY
112
- V
Mitigants
`
1579.32 33.26
7.36 0.16
4.42 0.09
234.33 4.94
0 0.00
2393.96 50.42
0 0.00
239.51 5.04
Mutual 0 0.00
289.34 6.09
4748.24 100.00
-VI
(tksf[ke izkk cU/u] lk[k uhfr ,oaii dk;Zoa fof/);Z;Z
,oa eqo [; tkseqe f[ke vf/dkjhkk
113
APPENDIX - V
Risk Concentrations within the total risk mitigants
Financial Risk Mitigants Outstanding amount of Risk Mitigants (after haircut)(For Fund Based & Non Fund Based Exposures) ` in crores
Risk Concentration %
Cash & Bank Deposit 1579.32 33.26
Gold 7.36 0.16
LIC 4.42 0.09
NSCs, KVP, IVP 234.33 4.94
Shares and Debentures 0 0.00
Margin Money against LC / BG 2393.96 50.42
Guarrantors & Counter Parties 0 0.00
Government Securities Excluding NSC 239.51 5.04
Mutual Funds 0 0.00
Others (Bonds) 289.34 6.09
TOTAL 4748.24 100.00
APPENDIX-VI
ORGANISATIONAL CHART OF INTERGRATED RISK MANAGEMENT DEPARTMENT
(Risk Mgmt. Credit Policy & Procedures) & CRO
114
115
BALANCE SHEET AND
PROFIT & LOSS ACCOUNT
CITY PALACE , UDAIPUR (RAJASTHAN)
116
117
AUDITORS’ REPORT
The State Bank of India
Report On The Financial Statements
We, the undersigned Auditors of State Bank of Bikaner & Jaipur, appointed under section 41(1) of the State Bank of India
(Subsidiary Banks) Act, 1959, do hereby report on the Balance Sheet as at 31st March, 2013, the Profit and loss account
and the Cash flow Statement for the year ended on that date.
1. We have audited the accompanying financial statements of State Bank of Bikaner & Jaipur as at 31st March,
2013, which comprise the Balance Sheet as at March 31, 2013, and Profit and Loss Account and the cash flow
statement for the year ended, and a summary of significant accounting policies and other explanatory information.
Incorporated in these financial statements are the returns of 20 branches audited by us and 511 branches and 56
processing centres audited by branch auditors. The branches audited by us and those audited by other auditors
have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of
India. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 506
branches and 18 other offices which have not been subjected to audit. These unaudited branches account for
9.59 per cent of advances, 20.71 per cent of deposits, 6.37 per cent of interest income and 19.12 per cent of
interest expenses.
Management’s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial statements in accordance with The Banking
Regulation Act, 1949. This responsibility includes the design, implementation and maintenance of internal control
relevant to the preparation of the financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
6. Without qualifying our opinion, we refer to:-
a) Note No. 3(b) on classification of restructured advances.
b) Note no. 3(c) on classification of agricultural advances in respect of unaudited branches.
c) Note no. 5 regarding provision of Pension and Gratuity.
118
i
ii
iii
( -11617)
( 082103) ( 099374)
( 012705) ( 080527) ( 072332)
119
For S. DAGA & CO.
Chartered Accountants
(CA SHANTI LAL DAGA)
(M.No. F-11617)
PARTNER
For AGARWAL ANIL & CO.
Chartered Accountants
(CA ANIL AGRAWAL)
(M. No. 082103)
PARTNER
Firm Reg. No. 003222 N
For M.K. AGGARWAL & CO.
Chartered Accountants
(CA ATUL AGGARWAL)
(M. No. 099374)
PARTNER
Firm Reg. No. 001411 N
For CHATURVEDI & CO.
Chartered Accountants
(CA SATISH CHANDRA CHATURVEDI)
(M. No.12705)
PARTNER
Firm Reg. No. 302137 E
For UBEROI SOOD & KAPOOR
Chartered Accountants
(CA SANJAY SOOD)
(M. No.80527)
PARTNER
Firm Reg. No. 001462 N
For P S D & ASSOCIATES
Chartered Accountants
(CA PRAKASH SHARMA)
(M. No. 072332)
PARTNER
Firm Reg. No. 004501 C
Delhi May 06, 2013
7. In our opinion, as shown by books of bank, and to the best of our information and according to the explanations given
to us:
(i) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary
particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st
March 2013 in conformity with accounting principles generally accepted in India;
(ii) the Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with
accounting principles generally accepted in India, for the year covered by the account; and
(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the
Third Schedule to the Banking Regulation Act, 1949.
9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required
therein, we report that:
(a) We have obtained all the information and explanations which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found them to be satisfactory.
(b) The transactions of the Bank, which have come to our notice have been within the powers of the Bank.
(c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of
our audit.
10. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable
accounting standards.
120
BALANCE SHEET OF STATE BANK OF BIKANER AND JAIPUR AS ON 31ST MARCH, 2013
(‘000 ) (‘000 omitted)
Schedule
As on 31.03.2013
` As on 31.03.2012
`
CAPITAL AND LIABILITIES
Capital 1 70,00,00 70,00,00
Reserves and Surplus 2 46,94,13,50 40,94,87,89
Deposits 3 7,21,16,22,17 6,15,72,09,16
Borrowings 4 58,42,02,88 29,54,97,50
Other liabilities and provisions 5 32,94,43,97 38,36,18,78
/ TOTAL : 8,60,16,82,52 7,25,28,13,33
ASSETS
Cash and balances with Reserve Bank of India 6 61,55,86,00 43,37,11,52
Balances with banks and moneyat call and short notice 7 1,80,73,18 1,17,21,58
Investments 8 2,01,45,88,14 1,66,69,47,51
Advances 9 5,75,34,96,62 4,92,44,32,71
Fixed Assets 10 2,31,32,13 2,02,07,98
Other Assets 11 17,68,06,45 19,57,92,03
/ TOTAL : 8,60,16,82,52 7,25,28,13,33
121
Schedule
As on 31.03.2013
`
As on 31.03.2012
`
Contingent liabilities12 2,06,05,07,68 1,27,20,85,95
Bills for Collection
15,06,09 40,86,37
Principal Accounting Policies17
Notes on accounts18
BALANCE SHEET OF STATE BANK OF BIKANER AND JAIPUR AS ON 31ST MARCH, 2013
/ Contd.
(‘000 )(‘000 omitted)
B. SRIRAMManaging Director
PRATIP CHAUDHURIChairman
RAJEEV N. MEHRA PRADEEP KUMAR SANYAL MIHIR KUMAR
SANJAY KUMAR SINGHChief General Manager
(Retail Banking)
SANTANU MUKHERJEE Chief General Manager (Commercial Banking)
MS. MALVIKA SINHA RAJESH T. MANUBARWALA BHARAT RATTAN
KISHOR BABU C. P.Dy. General Manager (Finance & Accounts)
NARAYANA SWAMY R.General Manager
(Treasury, F&A) & CFO
ARUN K. SARAF SUNIL DUTT BALI D.K. JAIN
Delhi May 06, 2013
( -11617) ( 082103) ( 099374) ( 12705) ( 80527) ( 072332)
For S. DAGA & CO.
Chartered Accountants(CA SHANTI LAL DAGA)
(M.No. F-11617)
PARTNER
For AGARWAL ANIL & CO.Chartered Accountants
(CA ANIL AGRAWAL)
(M. No. 082103)
PARTNER
Firm Reg. No. 003222 N
For M.K. AGGARWAL & CO.Chartered Accountants
(CA ATUL AGGARWAL)
(M. No. 099374)
PARTNER
Firm Reg. No. 001411 N
For CHATURVEDI & CO.
Chartered Accountants(CA SATISH CHANDRA
CHATURVEDI)
(M. No.12705)PARTNER
Firm Reg. No. 302137 E
For UBEROI SOOD &
KAPOOR
Chartered Accountants(CA SANJAY SOOD)
(M. No.80527)PARTNER
Firm Reg. No. 001462 N
For P S D & ASSOCIATES
Chartered Accountants(CA PRAKASH SHARMA)
(M. No. 072332)PARTNER
Firm Reg. No. 004501 C
As per our separate report of even date
DIRECTORS
122
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2013
(‘000 ) (‘000 omitted)
Schedule
Year ended 31.03.2013
`
Year ended 31.03.2012
`
I.
INCOME
Interest earned 13 74,98,18,56 62,91,35,75
Other income 14 7,26,28,91 5,98,97,18
/ TOTAL : 82,24,47,47 68,90,32,93
II.EXPENDITURE
Interest expended 15 49,32,37,45 40,69,96,13
Operating expenses 16 15,79,22,64 13,30,75,35
Provisions and contingencies 9,82,63,49 8,37,58,27
/ TOTAL : 74,94,23,58 62,38,29,75
III.PROFIT
Net Profit for the year 7,30,23,89 6,52,03,18
Profit brought forward 1 5
/ TOTAL 7,30,23,90 6,52,03,23
IV.APPROPRIATIONS
Transfer to Statutory Reserves 2,19,07,20 1,95,60,95
Transfer to Capital Reserves 17,66,56 7,80,07
Transfer from Investment Reserves -2,29,31 -11,11,78
(i) (viii)
Special Reserve U/S 36(i)(viii) of IT Act 50,30,00 44,17,00
Transfer to Revenue and Other Reserves 3,14,51,15 2,97,60,40
Interim Dividend Paid for the FY 2012-13 1,12,70,00 1,01,50,00
123
Schedule
Year ended 31.03.2013
`
Year ended 31.03.2012
`
Dividend Tax 18,28,28 16,46,58
Balance of Profit & Loss Account 2 1
/ TOTAL 7,30,23,90 6,52,03,23
`
Basic Earnings per Share (in `) 104.32 95.05
`
Diluted Earnings per Share (in `) 104.32 95.05
Principal Accounting Policies 17
Notes on Accounts 18
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2013
/ Contd.
(‘000 ) (‘000 omitted)
B. SRIRAMManaging Director
PRATIP CHAUDHURIChairman
RAJEEV N. MEHRA PRADEEP KUMAR SANYAL MIHIR KUMAR
SANJAY KUMAR SINGHChief General Manager
(Retail Banking)
SANTANU MUKHERJEE Chief General Manager (Commercial Banking)
MS. MALVIKA SINHA RAJESH T. MANUBARWALA BHARAT RATTAN
KISHOR BABU C. P.Dy. General Manager (Finance & Accounts)
NARAYANA SWAMY R.General Manager
(Treasury, F&A) & CFO
ARUN K. SARAF SUNIL DUTT BALI D.K. JAIN
Delhi May 06, 2013
( -11617) ( 082103) ( 099374) ( 12705) ( 80527) ( 072332)
For S. DAGA & CO.
Chartered Accountants(CA SHANTI LAL DAGA)
(M.No. F-11617)
PARTNER
For AGARWAL ANIL & CO.
Chartered Accountants
(CA ANIL AGRAWAL)
(M. No. 082103)
PARTNER
Firm Reg. No. 003222 N
For M.K. AGGARWAL & CO.
Chartered Accountants
(CA ATUL AGGARWAL)
(M. No. 099374)
PARTNER
Firm Reg. No. 001411 N
For CHATURVEDI & CO.
Chartered Accountants(CA SATISH CHANDRA
CHATURVEDI)
(M. No.12705)PARTNER
Firm Reg. No. 302137 E
For UBEROI SOOD &
KAPOOR
Chartered Accountants(CA SANJAY SOOD)
(M. No.80527)PARTNER
Firm Reg. No. 001462 N
For P S D & ASSOCIATES
Chartered Accountants(CA PRAKASH SHARMA)
(M. No. 072332)PARTNER
Firm Reg. No. 004501 C
As per our separate report of even date
DIRECTORS
124
SCHEDULE 1 CAPITAL
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
` /-
Authorised Capital(50,00,00,000 equity shares of `10/- each)
5,00,00,00 5,00,00,00
` /-
Issued Capital(7,00,00,000 equity shares of `10/- each)
70,00,00 70,00,00
` /-
Subscribed, Called-up & Paid-up Capital(7,00,00,000 equity shares of `10/- each)
70,00,00 70,00,00
/ TOTAL : 70,00,00 70,00,00
125
SCHEDULE 2 RESERVES & SURPLUS
(‘000 ) (‘000 omitted)
As on 31.03.2013 As on 31.03.2012
I. / Statutory Reserves ` `
Opening Balance12,73,38,85 10,77,77,90
Additions during the year 2,19,07,20 1,95,60,95
Deductions during the year 0 0 / TOTAL : 14,92,46,05 12,73,38,85
II. / Capital Reserves
Opening Balance41,40,58 33,60,51
Additions during the year17,66,56 7,80,07
Deductions during the year0 0
/ TOTAL : 59,07,14 41,40,58III. / Share Premium
Opening Balance8,66,64,49 1,06,64,49
Additions during the year0 7,60,00,00
Deductions during the year0 0
/ TOTAL : 8,66,64,49 8,66,64,49IV. / Investment Reserves
Opening Balance2,29,31 13,41,09
Additions during the year0 0
Deductions during the year 2,29,31 11,11,78
/ TOTAL : 0 2,29,31V. / Revenue & Other Reserves
Opening Balance18,66,97,65 15,69,37,25
Additions during the year3,14,51,15 2,97,60,40
Deductions during the year 0 0
/ TOTAL : 21,81,48,80 18,66,97,65VI. (i) (viii)
Special Reserve U/S 36 (i)(viii) of IT Act
Opening Balance44,17,00 0
Additions during the year 50,30,00 44,17,00
Deduction during the year 0 0
/ TOTAL : 94,47,00 44,17,00
VII.
Balance In Profit & Loss Account2 1
(I, II, III, IV, V, VI VII) / TOTAL (I, II, III. IV, V, VI and VII) 46,94,13,50 40,94,87,89
126
SCHEDULE 3 DEPOSITS
SCHEDULE 4 BORROWINGS
(‘000 ) (‘000 omitted)
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
A.
I.
Demand Deposits
i) / From banks 2,87,90,50 2,79,76,19
ii) / From others 41,42,13,13 35,99,25,49
II.
Savings Bank Deposits
2,14,43,40,71 1,91,15,13,89
III.
Term Deposits
i) / From Banks 6,13,78,10 37,05,93
ii) / From Others 4,56,28,99,73 3,85,40,87,66
(I, II III) TOTAL (I, II and III) 7,21,16,22,17 6,15,72,09,16
B. i) Deposits of branches in India
7,21,16,22,17 6,15,72,09,16
ii)Deposits of branches outside India
0 0
/ TOTAL : 7,21,16,22,17 6,15,72,09,16
As on 31.03.2013
`
As on 31.03.2012
`
I.
Borrowings in India
i)Reserve Bank of India
0 0
ii)Other Banks
20,99,61,31 45,78,75
iii)Other Institutions and Agencies
8,86,71,07 2,25,00,00
Total Borrowing in India 29,86,32,38 2,70,78,75
II.
Borrowings outside India7,05,70,50 5,34,18,75
127
As on 31.03.2013
`
As on 31.03.2012
`
I.
Bills Payable
11,39,04,01 14,08,01,05
II.
Share Application Money
0 0
III.
Inter-office adjustments (net)
0 0
IV.
Interest accrued
7,71,77,98 6,77,59,38
V.
Deffered Tax Liability (Net)
0 6,40,98
VI
Others (including provisions)
13,83,61,98 17,44,17,37
/ TOTAL : 32,94,43,97 38,36,18,78
As on 31.03.2013
`
As on 31.03.2012`
I.
Cash in hand
3,52,99,64 3,51,41,97
(including foreign currency notes)II.
Balance with Reserve Bank of India
i) In Current Accounts 58,02,86,36 39,85,69,55
ii) in Other Accounts 0 0
I II / TOTAL : (I & II) 61,55,86,00 43,37,11,52
SCHEDULE 5 OTHER LIABILITIES AND PROVISIONS
SCHEDULE 6 CASH AND BALANCES WITH RESERVE BANK OF INDIA
(‘000 ) (‘000 omitted)
(‘000 ) (‘000 omitted)
III. I I
Perpetual Tier-I (IPDI) Bonds Series-I
2,00,00,00 2,00,00,00
IV.
Subordinated Debts
A. i) IISubordinate Debts/Bonds Forming Tier-II Capital
15,00,00,00 15,00,00,00
ii) II Hybrid Debts/Bonds Forming Tier-II Capital
4,50,00,00 4,50,00,00
I IV / TOTAL : (I to IV) 58,42,02,88 29,54,97,50
Secured borrowings included in above
29,37,46,73 2,25,00,00
128
SCHEDULE 7 BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
I.
In India
i) Balance with banks
a) In Current Accounts
30,84,59 19,26,46
b) In Other Deposit Accounts
0 0
ii)
Money at call and short notice
a)With banks
0 0
b)With other institutions
0 0
i ii / TOTAL : (i & ii) 30,84,59 19,26,46
II.
Outside India
i)In Current Accounts
1,49,88,59 97,95,12
ii)In Other Deposit Accounts
0 0
iii)Money at call and short notice
0 0
i, ii iii / TOTAL : (i, ii & iii) 1,49,88,59 97,95,12
I II / TOTAL : (I & II) 1,80,73,18 1,17,21,58
129
SCHEDULE 8 INVESTMENTS
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
I.
Investments in India in
i) / Government securities 1,76,73,37,65 1,61,70,94,73
ii) / Other approved securities 4,93,37 13,73,30
iii) / Shares 1,60,16,55 1,43,38,13
iv) / Debentures and Bonds 59,80,35 93,45,17
v) / /
Subsidiaries and/or joint ventures/Regional Rural Banks
37,22,58 13,77,58
vi) / Others
/ Security Receipts 2,82,26 3,79,61
/Commercial Paper 48,70,28 22,32,80
Contributory shares of UTI
0 0
Deposit with NABARD under RIDF Scheme
11,01,92 18,81,17
/ Certificate of Deposit 21,21,37,72 18,16,16
/ Mutual Funds 26,45,46 1,71,08,86
i vi / TOTAL (i to vi): 2,01,45,88,14 1,66,69,47,51
II.
Investments outside India in
i)Government securities (including local authorities)
0 0
ii)Subsidiaries and/or joint ventures abroad
0 0
iii)Other investments
0 0
i iii / TOTAL (i to iii) : 0 0
I II / TOTAL : (I & II) 2,01,45,88,14 1,66,69,47,51
130
SCHEDULE 9 ADVANCES
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
A.i)
Bills purchased and discounted
16,88,26,80 18,60,15,59
ii)
Cash Credits, overdrafts and loans repayable on demand
2,66,12,15,01 2,08,38,40,31
iii)
Term loans
2,92,34,54,81 2,65,45,76,81
/ TOTAL : 5,75,34,96,62 4,92,44,32,71
B.i)
Secured by tangible assets(includes advances against Book Debts)
4,81,54,57,07 4,04,20,10,80
ii)
Covered by Bank/Government Guarantees
35,35,74,91 18,52,60,25
iii) Unsecured
58,44,64,64 69,71,61,66
/ TOTAL : 5,75,34,96,62 4,92,44,32,71
C.
I.
Advances in India
i)
Priority Sector
2,03,12,99,97 1,74,08,45,43
ii)
Public Sector
33,53,08,63 44,14,60,42
iii)
Banks
2,39,99,88 14,22
iv)
Others
3,36,28,88,14 2,74,21,12,64
/ TOTAL : 5,75,34,96,62 4,92,44,32,71
II.
Advances outside India
i)
Due from Banks
0 0
ii)
Due from others
a) Bills purchased and discounted
0 0
b) Syndicated loans
0 0
c) Others
0 0
/ TOTAL :0 0
I II / TOTAL : (C.I & C.II) 5,75,34,96,62 4,92,44,32,71
131
SCHEDULE 10 Fixed Assets
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
I.
Premises
At cost as on 31st March of the preceding year 70,84,63 70,84,63
Additions during the year 0 0
Deductions during the year 26,49 0
Depreciation to date 35,69,35 34,09,58
/ TOTAL : 34,88,79 36,75,05II.
Other Fixed Assets
(including furniture and fixtures)
At cost as on 31st March of the preceding year 6,70,12,84 6,23,70,63
Additions during the year 1,08,04,73 69,07,29
Deductions during the year 21,25,34 22,65,09
/ Depreciation to date 5,60,60,90 5,05,05,64
`
`
(Net of adjustments on account of sale/write-off `516.78 lacs; Previous year ` 1215.31 lacs)
/ TOTAL : 1,96,31,33 1,65,07,19III. *
*Leased Assets
At cost as on 31st March of the preceding year 45,20,02 45,20,02
Additions during the year 0 0
Deductions during the year 0 0
/ Depreciation to date 40,49,57 40,49,57
/ Lease Adjustment -4,70,45 -4,70,45
*
*(Represents fully amortised assets where entire lease consideration has been received)
/ TOTAL : 0 0IV.
Capital Work in Progress 12,01 25,74
I, II, III IV / TOTAL : (I, II, III & IV) 2,31,32,13 2,02,07,98
132
SCHEDULE 11 OTHER ASSETS
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
I.Inter-office adjustments (net) 2,75,13,29 1,90,39,47
II.Interest accrued 7,66,67,70 6,63,05,00
III.
Tax paid in advance/Tax deducted at source(net of provisions) 46,32,01 2,22,78,76
IV.Deferred Tax Assets (Net) 12,95,20 0
V.Stationery and Stamps 4,99,70 4,96,41
VI.Non-banking assets acquired in satisfaction of claims 6,58 4,53
VII.Others 6,61,91,97 8,76,67,86
/ TOTAL : 17,68,06,45 19,57,92,03
133
SCHEDULE 12 CONTINGENT LIABILITIES
SCHEDULE 13 INTEREST EARNED
(‘000 ) (‘000 omitted)
(‘000 ) (‘000 omitted)
As on 31.03.2013
`
As on 31.03.2012
`
I.Claims against the bank not acknowledged as debts
39,86,97 43,93,69
II.Liability for partly paid investments
3,01,63 7,58,02
III.Liability on account of outstanding forward exchange contracts
1,28,17,39,28 68,07,18,15
IV. @Guarantees given on behalf of constituents @
a) In India 32,16,67,00 24,03,44,31
b) Outside India 0 0
V. #Acceptances, endorsements and other obligations #
38,94,54,07 30,00,44,56
VI.Other items for which the bank is contingently liable
6,33,58,73 4,58,27,22
/ TOTAL : 2,06,05,07,68 1,27,20,85,95
@ ` `
Net after deducting cash margin of ` crores. (Previous year ` crores)
# ` ` 584.33
Net after deducting cash margin of ` crores. (Previous year ` 584.33 crores)
Year ended31.03.2013
`
Year ended31.03.2012
`
I.Interest/discount on advances/bills
59,87,72,67 50,77,91,28
II.Income on investments
14,56,71,26 11,65,53,93
III.Interest on balances with Reserve Bank of India and other inter-bank funds
22,10,83 18,90,61
IV. / Others 31,63,80 28,99,93
/ TOTAL : 74,98,18,56 62,91,35,75
134
SCHEDULE 14 OTHER INCOME
(‘000 ) (‘000 omitted)
Year ended31.03.2013
`
Year ended31.03.2012
`
I.
Commission, exchange and brokerage
5,57,91,97 5,51,22,91
II.
Profit on sale of investments (net)
75,55,49 28,58,58
III.
Profit on revaluation of investments
0 0
IV.
Profit/Loss on sale/write off of land, building and other assets
0 5
V.
Profit on exchange transactions (net)
55,20,10 3,58,15
VI.
Income earned by way of dividends etc. from subsidiaries/companies and/or joint ventures abroad/in India
0 0
VII.
Lease Rental
0 0
Lease Equalisation
0 0
VIII.
Miscellaneous Income
37,61,35 15,57,49
/ TOTAL : 7,26,28,91 5,98,97,18
SCHEDULE 15 INTEREST EXPENDED
(‘000 ) (‘000 omitted)
Year ended31.03.2013
`
Year ended31.03.2012
`
I.Interest on Deposits
46,43,74,33 38,38,72,42
II.Interest on Reserve Bank of India/Inter-bank borrowings
93,75,60 79,90,45
III.Others
1,94,87,52 1,51,33,26
/ TOTAL : 49,32,37,45 40,69,96,13
135
SCHEDULE 16 OPERATING EXPENSES
(‘000 ) (‘000 omitted)
Year ended31.03.2013
`
Year ended31.03.2012
`
I.Payments to and provisions for employees
9,87,53,21 8,19,81,83
II.Rent, taxes and lighting
1,20,84,35 1,08,92,63
III.Printing and stationery
19,92,66 19,20,82
IV.Advertisement and publicity
12,71,24 9,07,87
V.Depreciation on Bank's property
57,15,03 53,82,39
VI.Depreciation on Leased Assets
0 0
VII.Directors' fee, allowances and expenses
58,91 38,25
VIII.Auditors' fee and expenses (including branch auditors)
11,08,20 12,91,65
IX.Law charges
2,79,35 3,13,40
X.Postage, Telegrams, Telephones
24,50,51 21,43,93
XI.Repairs and maintenance
17,11,56 13,79,82
XII.Insurance
57,25,24 47,87,60
XIII.Other expenditure
2,67,72,38 2,20,35,16
/ TOTAL : 15,79,22,64 13,30,75,35
136
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
137
SIGNIFICANT ACCOUNTING POLICIES
A BASIS OF PREPARATION:
The financial statements have been prepared and presented under the historical cost convention and accrual basis of accounting, unless otherwise stated and are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’), statutory requirements prescribed under the Banking Regulation Act 1949, circulars and guidelines issued by the Reserve Bank of India (‘RBI’) from time to time, Accounting Standards (‘AS’) issued by the Institute of Chartered Accountants of India and current practices prevailing within the banking industry in India.
B USE OF ESTIMATES:
The preparation of financial statements require the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision to the accounting estimates is recognized prospectively in the current and future periods.
1. REVENUE RECOGNITION
1.1 Income & Expenditure are recognised on accrual basis except the following income, which are recognised on cash basis:
i) Interest and other income on Non Performing Assets as per IRAC norms prescribed by RBI
ii) Interest on Non-performing Investments
iii) Commission on L.Cs. and Guarantees (excluding Deferred Payment Guarantees)
iv) Insurance claims
v) Dividend on shares and units of Mutual Funds
vi) Interest on overdue demand bills purchased
vii) Locker Rent
viii) Interest on Tax refund
ix) Commission from Cross Selling Activities
1.2 Profit or loss on sale of investments is recognised in the Profit and Loss Account, however, the profit on sale of investments in the ‘Held to Maturity’ category is appropriated net of applicable taxes and amount required to be transferred to statutory reserve to ‘Capital Reserve Account’.
1.3 Income (other than interest) on investments in "Held to Maturity" (HTM) category acquired at a discount to the face value, is recognised as follows :
a) On Interest bearing securities, it is recognized only at the time of sale/redemption.
b) On zero-coupon securities, it is accounted for over the balance tenor of the security on a constant yield basis.
2. TRANSACTIONS INVOLVING FOREIGN EXCHANGE
The Bank has followed the Accounting Standard-11 (Revised 2003) issued by the Institute of Chartered Accountants of India regarding foreign exchange transactions and accordingly:-
2.1 Foreign Currency transactions are recorded on initial recognition in the reporting currency by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency on the date of transaction.
SCHEDULE 17
138
i
ii
iii
iv
I.II
139
2.2 Foreign currency monetary items are reported using the Foreign Exchange Dealers Association of India (FEDAI) closing spot rate and resultant gain / loss is recognised to Profit and Loss Account.
2.3 Exchange differences arising on the settlement of monetary items at the rates different from those at which they were recorded, are recognized as income or as expense in the period in which they arise.
2.4 Guarantees, Letters of Credit and Forward Exchange Contracts issued in foreign currencies are translated at FEDAI rates on the Balance Sheet date.
3. INVESTMENTS
3.1 The Transactions in Government Securities are recorded on 'Trade Date' upto 31.12.2010 and on 'Settlement date' with effect from 01.01.2011. Investment other than Government Securities are recorded on 'Trade Date'.
3.2 Investments have been classified into "Held to Maturity", "Available for Sale" and "Held for Trading" in terms of RBI guidelines. Securities acquired by the Bank with an intention to hold till maturity is classified under "Held to Maturity".
3.3 The securities acquired by the Bank with an intention to trade by taking advantage of short-term price/ interest rate movements are classified under "Held for Trading".
3.4 The securities, which do not fall within the above two categories, are classified under "Available for Sale".
3.5 Transfer of securities from one category to another is carried out at the lower of acquisition cost/ book value/ market value on the date of transfer. The depreciation, if any, on such transfer is fully provided for.
3.6 In determining acquisition cost of an investment:-
a Brokerage / commission received on subscription is deducted from the cost of securities.
b. Brokerage, commission etc. paid in connection with acquisition of securities are treated as revenue expenses.
c. Interest accrued up to the date of acquisition of securities i.e. broken-period interest is excluded from the acquisition cost and the same is accounted in interest accrued but not due account.
3.7 Investments are valued as per RBI/ FIMMDA guidelines, on the following basis:
'Held to Maturity'
i) Investments under "Held to Maturity" category are carried at acquisition cost. Wherever the book value is higher than the face value/redemption value, the premium is amortized over the remaining period to maturity.
ii) Investments in subsidiaries/joint ventures/associates are valued at carrying cost less diminution, other than temporary, in nature.
iii) Investments in sponsored regional rural banks are valued at carrying cost.
iv) Investment in venture capital is valued at carrying cost.
'Available for Sale' and 'Held for Trading' :-
a) Govt. Securities
I. Central Govt. Securities
At market prices/YTM as published by Fixed Income Money Market and Derivatives Association of India (FIMMDA)
II. State Govt. Securities On appropriate yield to maturity basis as per FIMMDA/RBI guidelines.
b) Securities guaranteed by Central / State Government, PSU Bonds (not in the nature of advances)
On appropriate yield to maturity basis as per FIMMDA/RBI guidelines
c) Treasury Bills At carrying cost
140
7
i)
141
d) Equity shares At market price, if quoted, otherwise at breakup value of the Shares as per the latest
Balance Sheet (not more than one year old),
otherwise at Re.1 per company
e) Preference shares At market price, if quoted or on appropriate yield to maturity basis not exceeding redemption value as per RBI/FIMMDA guidelines.
f) Bonds and debentures (not in the nature of advances)
At market price, if quoted, or on appropriate yield to maturity basis as per RBI/ FIMMDA guidelines.
g) Units of mutual funds As per stock exchange quotation, if quoted; at repurchase price/NAV, if unquoted
h) Commercial paper At carrying cost
i) Certificate of Deposits At carrying cost.
j) Security receipts of ARCIL At net asset value of the asset as declared by ARCIL
k) Venture Capital Funds At net asset value (NAV) declared by the VCF
l) Other Investments At carrying cost less diminution in value
The above valuation in category of Available for Sale and Held for Trading are done scrip wise and depreciation / appreciation is aggregated for each classification. Net depreciation for each classification if any is provided for while net appreciation is ignored.
3.8 Investments are subject to appropriate provisioning/ de- recognition of income, in line with the prudential norms of Reserve Bank of India for NPI classification. The depreciation/provision in respect of non-performing securities is not set off against the appreciation in respect of the other performing securities.
3.9 Accounting for Repo/ reverse repo transactions (other than transactions under the Liquidity Adjustment Facility (LAF) with the RBI)
The securities sold and purchased under Repo/ Reverse repo are accounted as Collateralized lending and borrowing transactions. However securities are transferred as in case of normal outright sale/ purchase transactions and such movement of securities is reflected using the Repo/Reverse Repo Accounts and Contra entries. The above entries are reversed on the date of maturity. Costs and revenues are accounted as interest expenditure/income, as the case may be. Balance in Repo A/c is classified under schedule 4 (Borrowings) and balance in Reverse Repo A/c is classified under schedule 7 (Balance with Banks and Money at Call & Short Notice).
Securities purchased / sold under LAF with RBI are debited / credited to Investment Account and reversed on maturity of the transaction. Interest expended / earned thereon is accounted for as expenditure / revenue.
4. ADVANCES
4.1 Assets Classification and provisioning in respect of Non-Performing Advances is made as per Income Recognition, Asset Classification & Provisioning (IRAC) norms issued by the Reserve Bank of India.
4.2 Advances are net of specific loan loss provisions, floating provision, ECGC claims received, bills rediscounted, provision for diminution in fair value and interest sacrifice.
4.3 In addition to the specific provision on NPAs, general provisions are also made for standard assets. These provisions are reflected in Schedule 5 of the balance sheet under the head “Other Liabilities & Provisions – Others” and are not considered for arriving at Net NPAs.
4.4 Legal expenses incurred in respect of suit filed accounts are treated as revenue expenditure and on recovery the same are credited to revenue expenditure.
4.5 The sale of NPA is accounted as per guidelines prescribed by RBI :-
i) In case the sale is at a price lower than the Net Book value (NBV), the deficit is charged to Profit & Loss Account.
142
ii)
iii)
7.1
7.2
7.3
8.1
8.2
8.3
8.4
143
ii) In case the sale is at price higher than the NBV, the surplus is kept separately for meeting the shortfall/losses,
if any, on future sale of other NPAs.
iii) In case of sale of written off accounts, the amount realized is credited to Profit & Loss account.
4.6 In case of restructuring /rescheduling of advances, erosion in the fair value of advances is provided on the basis of
present values computed in the manner prescribed by the RBI.
5. FLOATING PROVISION
In accordance with the Reserve Bank of India guidelines, the bank has an approved policy for creation and utilization
of floating provisions separately for advances, investments and general purpose. The quantum of floating provisions
to be created would be assessed at the end of each financial year. The floating provisions would be utilized only for
contingencies under extra ordinary circumstances specified in the policy with prior permission of Reserve Bank of
India.
6. PROVISION FOR COUNTRY EXPOUSURE
In addition to the specific provisions held according to the asset classification status, provisions are held for
individual country exposures (other than the home country). Countries are categorised into seven risk categories,
namely, insignificant, low, moderate, high, very high, restricted and off-credit, and provisioning made as per extant
RBI guidelines. If the country exposure (net) of the bank in respect of each country does not exceed 1% of the total
funded assets, no provision is maintained on such country exposures. The provision is reflected in schedule 5 of the
balance sheet under the “Other liabilities & Provisions – Others”.
7. LEASED ASSETS
7.1 Lease income is recognised based on the internal rate of return method over the primary period of the leased assets
and accounted for in accordance with guideline/Accounting Standard issued by the Institute of Chartered Accountants
of India (ICAI).
7.2 Depreciation is provided on Straight Line Method at rates prescribed under Schedule-XIV of the Companies Act 1956.
Extra lease depreciation, in accordance with the applicable guidelines, is adjusted against the cost of Lease assets
through lease equalization account.
7.3 Provision for Non-Performing leased assets is made on the basis of IRAC norms applicable to advances, as per RBI
guidelines.
8. DERIVATIVES
8.1 Derivative contracts, such as foreign currency options, interest rate swaps, currency swaps, cross currency interest
rate swaps and forward rate agreements are entered, in order to hedge on-balance sheet/off-balance sheet assets
and liabilities or for trading purposes. The swap contracts entered to hedge on-balance sheet assets and liabilities are
structured in such a way that they bear an opposite and offsetting impact with the underlying on-balance sheet items.
The impact of such derivative instruments is correlated with the movement of the underlying assets and accounted in
accordance with the principles of hedge accounting.
8.2 All derivative instruments are recognized as assets or liabilities in the balance sheet and measured at marked to
market.
8.3 Derivative contracts classified as hedge are recorded on accrual basis. Hedge contracts are not marked to market
unless the underlying Assets / Liabilities are also marked to market.
8.4 Except as mentioned above, all other derivative contracts are marked to market as per the generally accepted
practices prevalent in the industry. In respect of derivative contracts that are marked to market, changes in the market
value are recognized in the profit and loss account in the period of change.
144
8.5
i %
ii %
iii
iv
i)
%
145
8.5 Option premium paid or received is recorded in profit and loss account at the expiry of the option. The Balance in the premium received on options sold and premium paid on options bought have been considered to arrive at Marked to Market value for forex Over the Counter options.
9. FIXED ASSETS
9.1 Fixed Assets are carried at cost less accumulated depreciation.
9.2 Premises include freehold as well as leasehold properties.
9.3 Cost includes cost of purchase and all expenditure such as site preparation, installation costs and professional fees incurred on the asset before it is put to use. Subsequent expenditure incurred on assets put to use is capitalised only when it increases the future benefits from such assets or their functioning capability.
9.4 Depreciation on Fixed Assets is provided as under:-
i On Computers & ATM Straight Line Method @ 33.33% every year
ii On Computer Software notforming integral part of hardware
@ 100%, in the year of acquisition.
iii Leasehold land and Building Amortised as per the life of the lease.
iv On rest of the assets including Software forming integral part of hardware
On diminishing balance method at the rates and in the manner prescribed under Income Tax Rules 1962
9.5 Depreciation on premises is provided on composite cost, wherever the value of land and building is not separately identifiable.
9.6 No depreciation is provided on assets sold/disposed off during the year.
9.7 Capital Work in Progress also includes advance payment for purchase of assets.
10. IMPAIRMENT OF ASSETS
As per Accounting Standard – 28, Fixed Assets are reviewed for impairment whenever events or changes in circumstances warrant that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net discounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset.
11. EMPLOYEE BENEFITS
11.1 Short Term Employee Benefit:
The undisclosed amount of short term employee benefits, such as medical benefits, casual leave etc. which are expected to be paid in exchange for the services rendered by the employees are recognized during the period when the employee renders the service.
11.2 Post Employment Benefits:
i) Defined Benefit Plan
The Bank operates a Provident Fund scheme for its all eligible employees. The Bank contributes monthly its contribution for the employees who have not opted for pension, at a determined rate (currently 10% of employee’s basic pay plus eligible allowance). These contributions are remitted to an approved trust established for this purpose and are charged to Profit & Loss Account.
The Bank operates gratuity and pension schemes, which are defined benefits plans.
The Bank provides for gratuity to all eligible employees. The gratuity, an amount equivalent of 15 days eligible salary payable for each completed year of service, is paid subject to a maximum amount of 10,00,000/- as per Gratuity Act,
146
`
ii)
SBBJEDCPS)
NSDL CRAPRAN `
`
iii)
147
1972 unless the same is higher in terms of the State Bank of Bikaner & Jaipur (Payment of Gratuity to Employees )
Regulation, 1970. The Bank makes annual contributions to a fund administered by trustees based on an independent
external actuarial valuation carried out annually.
The Bank provides for pension to all eligible employees as per the State Bank of Bikaner & Jaipur (Employees')
Pension Regulation, 1995. The benefit is in form of monthly pension to eligible employees. The Bank makes annual
contributions to funds administered by trustees based on an independent external actuarial valuation carried out
annually.
The cost of providing defined benefits is determined using the projected unit credit method (recommended method
under AS-15), with actuarial valuations being carried out at each balance sheet date.
Gains/ losses are recognized in the statement of profit and loss and are not deferred.
ii) Defined Contribution Plans
The Bank operates a new pension scheme (NPS) for all officers / employees joining the Bank on or after 1st April,
2010, which is a defined contribution plan, such new joinees not being entitled to become members of the existing
SBBJ Pension Scheme. During the year, The Bank has approved a Defined Contribution Pension Scheme namely
SBBJ Employees' Defined Contribution Pension Scheme (SBBJEDCPS) which has been implemented in the Bank.
As per the scheme, employees covered under the scheme contribute 10% of their basic pay plus dearness allowance
to the scheme together with a matching contribution from the Bank. Consequently, during the year around 1800
employees out of the 2350 employees, joined on or after 01.04.2010, have been allotted Permanent Retirement
Account Number (PRAN) by the National Depository Security Ltd. (NSDL), Central Recordkeeping Agency (CRA)
under the scheme and their contribution amounting to Rs. 8.78 crore have been remitted to the Trustee Bank, Bank
of India, Mumbai for crediting to the employees' accounts (PRAN). Efforts are being made to get PRAN allotted to the
remaining 550 employees and remit their contribution together with interest amounting to Rs. 3.44 crore. The Bank
recognizes such annual contribution and interest as expenses in the year to which they relate.
iii) Other Long Term Employee benefits:
All eligible employees of the bank are eligible for compensated absences; leave travel concession, retirement award
and resettlement allowance. The costs of such long term employee benefits are internally funded by the bank.
The cost of providing other long term benefits is determined using the projected unit credit method with actuarial
valuations being carried out at each balance sheet date. Past service cost is recognized in the statement of profit and
loss and is not deferred.
12. EARNINGS PER SHARE
12.1 The Bank reports basic and diluted earnings per share in accordance with AS 20 ‘Earnings per Share ‘issued by the
ICAI. Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding for the year.
12.2 Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity
shares were exercised or converted during the year.
12.3 Diluted earnings per share are computed using the weighted average number of equity shares and diluted potential
equity shares outstanding at year end.
13. TAXES ON INCOME
13.1 Income Tax expense is the aggregate amount of current tax, deferred tax and wealth tax. Current year taxes are
determined in accordance with the prevailing tax rates and tax laws. Deferred tax adjustments comprise changes in
the deferred tax assets or liabilities during the year.
148
i viii
i)
ii
iii)
i)
ii)
iii)
iv)
v)
149
13.2 Deferred tax assets and liabilities are recognised on a prudent basis for the future tax consequences of timing differences arising between the carrying values of assets and liabilities and their respective tax basis and carry forward losses. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or subsequently enacted prior to the balance sheet date. The impact of changes in the deferred tax assets and liabilities is recognised in the profit and loss account.
13.3 Deferred tax assets are recognized and reassessed at each reporting date, in accordance with AS -22 and based upon management's judgment as to whether realisation is considered certain. Deferred tax assets are recognized only if there is virtual certainty that such deferred tax assets can be realised against future taxable income.
13.4 Special Reserve Account has been created under section 36 (i) (viii) of the Income Tax, 1961 from the Financial Year 2011-12, to avail the deduction. Bank has decided that it has no intention to make withdrawal from such Special Reserve created and maintained. Further such special reserve is in the nature of non-reversible and thus becomes a permanent difference and accordingly no deferred tax liability is created.
14. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
14.1 In conformity with AS 29, “Provisions, Contingent Liabilities and Contingent Assets”, issued by the Institute of Chartered Accountants of India, the Bank recognizes provisions only when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
14.2 No provision is recognized for:
i) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or
ii) Any present obligation that arises from past events but is not recognized because
a) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
b) A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are assessed at regular intervals and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.
iii) Contingent Assets are not recognized in the financial statements as this may result in the recognition of income that may never be realized.
15. CASH & CASH EQUIVALENTS
Cash and cash equivalents include cash on hand and in ATM’s, and gold in hand, balances with RBI, balances with other banks, and money at call and short notice.
16. NET PROFIT AND CONTINGENCY FUND
a) Net Profit is arrived at after accounting for the following "Provisions and Contingencies".
i) Depreciation on Investments
ii) Provision for Income Tax and Wealth Tax
iii) Provision for Loan Losses
iv) Provision for Standard Assets and
v) Other usual and necessary provisions and transfer to contingencies.
b) Contingency funds are grouped in Schedule-5 of the Balance sheet under the head "other Liabilities and Provision".
150
` `
` `
` `
` `
` `
` % ` `
` `
`
`
`
`
234.45 140.67 46.89 93.78
150.00 90.00 30.00 60.00
384.45 230.67 76.89 153.78
6.
( )
II II
I 6% 9%
151
SCHEDULE 18
NOTES FORMING PART OF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
Investments amounting to 1. ` 5400.00 crores (previous year ` 4940.00 crores) are kept as margin with the Reserve Bank of India/Clearing Corporation of India Limited towards Real Time Gross Settlement (RTGS)/REPO/CBLO transactions.
(a) In respect of premises having gross value of 2. ` 0.42 crore (Previous year: ` 0.42 crore) pending completion of certain legal formalities/ procedural actions, title deeds are yet to be executed/ registered in favour of the Bank
(b) Fixed Assets : Gross Value of fixed assets ( other than premises) includes `. 71.58 crores (previous year `. 70.64 crores ) representing 10% of Bank's share jointly owned by State Bank of India and other Associate Bank's amounts to `. 715.81 Crores (previous year `. 706.47 crores)
(a) In terms of the RBI guidelines on provision for the sacrifice amount on restructured / rescheduled advances, 3. erosion in fair value of advances has been provided amounting to ` 127.03 crores (previous year ` 36.13 crores).
(b) In case of restructured loans as standard asset, classification of advances and consequent income recognition have been done based on major compliances of terms and conditions of restructured package.
(c) The classification of advances in respect of unaudited branches having substantial agriculture loans has been done as per certificate of the branch manager. In the opinion of the management there is no material impact on the accounts.
4. The Board of Directors have declared a interim dividend of 161% i.e. `. 16.10 per share ( face value of share `. 10/- per share) during the FY 2012-13.
5. Unamortised Pension and Gratuity Liabilities
During the FY 2010-11, the Bank has incurred a liability amounting ` 384.45 Crores on account of reopening of pension option ` 234.45 Crores and enhancement of Gratuity Ceiling `. 150.00 crores. The Bank has amortised the said liability over a period of five years commencing from FY 2010-11 in terms of RBI circular no. DBOD.BP.BC.80/21.04.018/2010-11 dated 9th February 2011. Accordingly, ` 76.89 Crores (Representing one fifth of ` 384.45 Crores) has been charged to Profit & Loss Account during the current FY 2012-13. The detailed break-up is as under:-
(`. in crores)
Particulars Original Liability Balance Brought Forward
Amortized during the year
Balance Carried Forward
Pension 234.45 140.67 46.89 93.78
Gratuity 150.00 90.00 30.00 60.00
Total 384.45 230.67 76.89 153.78
DISCLOSURES REQUIRED AS PER RBI GUIDELINES
6. Capital
a) Capital adequacy
The Bank’s Capital to Risk-weighted Asset Ratio (‘Capital Adequacy Ratio’) is calculated in accordance with the RBI’s ‘Prudential Guidelines on Capital Adequacy and Market Discipline - Implementation of the New Capital Adequacy Framework’ (‘Basel II’). Under the Basel II framework, the Bank is required to maintain a minimum capital adequacy ratio of 9% on an
152
II I
80%
I II
(` )
I II
I 4932.57 4355.70 4932.57 4355.70
II 1648.92 1785.44 1648.92 1785.44
6581.49 6141.14 6581.49 6141.14
55737.84 47936.02 54085.69 44613.25
5016.41 4314.24 4867.71 4015.19
I 8.85% 9.09% 9.11% 9.76%
II 2.96% 3.72% 3.05% 4.00%
11.81% 12.81% 12.16% 13.76%
I II
I II
II
20% % I %
I % II %
II
I
I % II % II
II
( ) ( ` )
i.
75.07% 75.07%
ii. 200.00 200.00
iii. II 900.00 1100.00
iv. II 450.00 450.00
153
ongoing basis for credit risk, market risk and operational risk, with a minimum Tier I capital ratio of 6%. The Prudential Floor is higher of “minimum capital is required to be maintained as per BASEL - II framework or as a percentage (prescribed as 80% for the financial year ending 31st March 2013) of minimum capital requirement computed as per BASEL - I framework” for credit and market risks.
The Bank’s capital adequacy ratio, calculated in accordance with the RBI guidelines under both Basel I and Basel II frameworks, is as follows :
(` in crores)
ParticularsAs per Basel I framework As per Basel II framework
March 31, 2013 March 31, 2012 March 31, 2013 March 31,2012
Tier I capital 4932.57 4355.70 4932.57 4355.70
Tier II capital 1648.92 1785.44 1648.92 1785.44
Total capital 6581.49 6141.14 6581.49 6141.14
Risk weighted assets 55737.84 47936.02 54085.69 44613.25
Minimum capital required 5016.41 4314.24 4867.71 4015.19
Capital adequacy ratios
Tier I 8.85% 9.09% 9.11% 9.76%
Tier II 2.96% 3.72% 3.05% 4.00%
Total 11.81% 12.81% 12.16% 13.76%
The Bank’s capital funds as on March 31, 2013 are higher than the minimum required under the Basel I and Basel II framework.
The difference between risk weighted assets under the Basel I and Basel II framework is a net impact of the following key changes :
Under the Basel II framework, risk weights are applicable to claims on corporates corresponding to their external rating or in the absence of it ranging from 20% to 150%, compared to a uniform 100% under Basel I.
Exposures qualifying for inclusion in the regulatory retail portfolio under Basel II framework attracts a risk weight of 75%, against 100% under Basel I.
The Basel II framework recognises risk mitigation techniques in the form of eligible financial collaterals such as cash margins, deposits, bonds, gold, debt mutual funds, etc., whilst under Basel I only cash margins and deposits are considered as eligible financial collateral.
Restructured assets attract a risk weight of 125% under the Basel II framework compared to 100% under Basel I. Operational risk is subject to a capital charge under the Basel II framework.
Under the Basel II framework, capital is subjected to a charge for valuation adjustment for illiquid position of derivative and non derivative portfolio.
(b) Share holding (` in crore)
Particulars Current Year Previous Year
i. (A) Percentage of the shareholding of the Government of India Nil Nil
(B) Percentage of the shareholding of State Bank of India 75.07% 75.07%
ii. Amount of IPDI 200.00 200.00
iii. Amount of subordinated debt as Lower Tier-II capital 900.00 1100.00
iv. Amount of Upper Tier - II Instruments 450.00 450.00
154
7. ( ` )
(1)
i. 20162.67 16692.61
20162.67 16692.61
ii. 16.79 23.13
16.79 23.13
iii. 20145.88 16669.48
20145.88 16669.48
(2)
i. 23.13 21.29
ii. 7.60 23.51
iii. 13.94 21.67
iv. 16.79 23.13
8. ( ` )
(1) - - -
(2) - - -
(1) - - -
(2) - - -
i) ( ` )
(1) (2) (3) (4) (5) (6) (7)
i 25.06 0.00 0.00 11.02 0.00
ii 70.84 0.00 0.00 0.00 4.91
iii 2141.38 34.83 0.00 0.00 0.00
iv 168.84 36.92 0.00 0.00 0.00
v 37.23 37.23 0.00 0.00 37.23
vi 29.87 36.92 0.00 0.00 60.02
2473.22 145.90 0.00 11.02 102.18
vii 5.64 x x x x
2467.58 x x x x
155
7. Investments (` in crore)
Particulars Current Year Previous Year
(1) Value of Investments
i. Gross Value of Investments 20162.67 16692.61
a) In India 20162.67 16692.61
b) Outside India NIL NIL
ii. Provisions for Depreciation 16.79 23.13
a) In India 16.79 23.13
b) Outside India NIL NIL
iii. Net Value of Investments 20145.88 16669.48
a) In India 20145.88 16669.48
b) Outside India NIL NIL
(2) Movement of provisions held towards depreciation on investments.
i. Opening Balance 23.13 21.29
ii. Add: Provisions made during the year 7.60 23.51
iii. Less: Write-off/write-back of excess provisions during the year 13.94 21.67
iv. Closing balance 16.79 23.13
8. Repo Transactions ( In face value terms) (` in crore)
Minimum outstanding during
the year
Maximum outstanding during
the year
Daily Average outstanding during
the year
As on March 31, 2013
Securities sold under repos
(1) Government Securities - - - NIL
(2) Corporate Debt Securities - - - NIL
Securities purchased under reverse repos
(1) Government Securities - - - NIL
(2) Corporate Debt Securities - - - NIL
Non- SLR Investment Portfolio
i) Issuer composition of Non- SLR Investments (` in crore)
S.N. Issuer Amount Extent of private
placement
Extent of ‘below
investment grade’
securities
Extent of ‘unrated’
securities
Extent of ‘unlisted’
securities
(1) (2) (3) (4) (5) (6) (7)
i PSUs 25.06 0.00 0.00 11.02 0.00
ii FIs 70.84 0.00 0.00 0.00 4.91
iii Banks 2141.38 34.83 0.00 0.00 0.00
iv Private Corporates 168.84 36.92 0.00 0.00 0.00
v Subsidiaries/Joint Ventures 37.23 37.23 0.00 0.00 37.23
vi Others 29.87 36.92 0.00 0.00 60.02
Sub Total 2473.22 145.90 0.00 11.02 102.18
vii Provision held towards depreciation 5.64 x x x x
Total 2467.58 x x x x
156
ii) ( ` )
jkf'k 12.55
4.89
12.55
4.89
4.89
iii)
%
9.
(i)
12817.39
(ii)
6618.27
5967.05
(iii) 126.57
(iv) % *PV01
(v) *PV01
157
ii) Non-performing Non-SLR Investment (` in crore)
Particulars Amount
Opening balance as on 01.04.2012 12.55
Additions during the year since 1st April 2012 4.89
Reductions during the above period 12.55
Closing balance as on 31.03.2013 4.89
Total provisions held 4.89
iii. The value of sales and transfer of securities to/from HTM category does not exceeds 5% of the book value of Investments held in HTM category at the beginning of the year.
9. DERIVATIVES
Qualitative Disclosure
The Bank has well defined structure and organization for management of risk in derivatives, with clear role of Front, a. Mid and Back office for Risk Management.
For risk measurement and monitoring, Integrated Risk Management Department is periodically monitoring risk on b. account of outstanding forward contracts and outstanding forward contracts of top 20 borrower account is advised to the user department.
Bank is not undertaking Exchange Traded Interest Rate Derivatives , Forward Rate Agreement, Interest Rate Swaps c. and Credit Default Swaps.
Bank is not undertaking any trading in derivative transaction in its own account. The Bank undertakes Forward d. contracts with counter parties only on behalf of its constituents in order to hedge their on balance-sheet/ off-balance-sheet assets and liabilities as per the RBI directives.
Forward contracts so booked are covered back to back with counter parties. e.
All outstanding forward contracts are marked to market as per the RBI directives and are shown in the balance-sheet f. as contingent liabilities.
Quantitative Disclosure
(Forward Contracts booked on behalf of constituents) (` in crore)
Sl. No. Particular Currency Derivative Interest rate Derivative
(i) Derivative (Notional Principal Value)
(a) For hedging 12817.39 NIL
(b) For Trading NIL NIL
(ii) Marked to Market (1)
(a) Assets 6618.27 NIL
(b) Liabilities 5967.05 NIL
(iii) Credit Exposure 126.57 NIL
(iv) Likely impact of one percentage change in interest rate (100*PV01)
a) on hedging derivatives NIL NIL
b) on trading derivatives NIL NIL
(v) Maximum and Minimum of 100*PV01 observed during the year
a) on hedging NIL NIL
b) on trading NIL NIL
158
10.
i) ( ` )
(i) (») 2.27% 1.92%
(ii)
1651.47 835.40
1627.88 1571.93
+ 3279.35 2407.33
i. 451.00 253.32
ii. 245.61 227.45
iii. 463.25 275.09
1159.86 755.86
2119.49 1651.47
(iii)
945.41 341.33
1009.83 1334.13
+ 1955.24 1675.46
i. 286.28 234.74
ii. 150.28 220.22
iii. 214.62 275.09
+ 651.96 730.05
1303.28 945.41
(iv)
705.05 494.07
561.72 486.07
450.55 275.09
0.00 0.00
0.00 0.00
816.21 705.05
ii)
% %
iii)
1 9.25 6.21
2 2.42 2.63
3 7.80 3.83
4 2.03 2.26
159
10. Asset Quality
i) Non-Performing Asset (` in Crore)
Particulars Current Year
Previous Year
(i) Net NPAs to Net Advances (%) 2.27% 1.92%
(ii) Movement of Gross NPAs
a. Opening balance 1651.47 835.40
b. Additions (Fresh NPA) during the year 1627.88 1571.93
c. Sub-total (a+b) 3279.35 2407.33
d. Reductions during the year by way of :
i. Up gradations 451.00 253.32
ii. Recoveries (exc. Recoveries made from upgraded A/c) 245.61 227.45
iii. Write- off 463.25 275.09
Sub-total (d) 1159.86 755.86
e. Closing balance (c-d) 2119.49 1651.47
(iii) Movement of Net NPAs
a. Opening balance 945.41 341.33
b. Additions during the year 1009.83 1334.13
c. Sub-total (a+b) 1955.24 1675.46
d. Reductions during the year by way of :
i. Up gradations 286.28 234.74
ii. Recoveries (exc. Recoveries made from upgraded A/c) 150.28 220.22
iii. Write- off 214.62 275.09
Sub-total (d) 651.96 730.05
e. Closing balance (c-d) 1303.28 945.41
(iv) Movement of provisions for NPAs (excluding provisions on standard assets) including floating provision (as stated in Note No.19)
a. Opening balance 705.05 494.07
b. Provisions made during the year 561.72 486.07
c. Write-off/write back/adjustment of excess provisions 450.55 275.09
d. Provision made for standard accounts covered under
ADWR Scheme
0.00 0.00
e. Provision used for writing off standard accounts
covered under ADWR Scheme
0.00 0.00
f. Closing Balance 816.21 705.05
ii) Provisioning Coverage Ratio
Provisioning to Gross Non-Performing Assets of the Bank as on 31st March, 2013 is 58.64%. (prev. year 58.26%), including AUCA.
iii) Sector-wise NPAs
S. No. Sector % of NPAs to Total Advance in that sector
Current Year
% of NPAs to Total Advance in that sector
Previous Year
1 Agriculture & allied activities 9.25 6.21
2 Industry (Micro & small, medium and large) 2.42 2.63
3 Services 7.80 3.83
4 Personal Loans 2.03 2.26
160
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164
v)
( ` )
i.
ii.
iii.
iv.
v.
vi)
( ` )
1.
2. (
( ` )
1.
2.
3.
vii)
`
165
v) Details of financial assets sold to Securitization / Reconstruction Company for Asset Reconstruction
(`in Crore)
Particulars Current
Year
Previous
Year
i. No. of accounts Nil Nil
ii. Aggregate value (net of provisions) of accounts sold to SC/RC Nil Nil
iii. Aggregate consideration Nil Nil
iv. Additional consideration realized in respect of accounts transferred in earlier
years
Nil Nil
v. Aggregate gain/loss over net book value. Nil Nil
vi) Details of non-performing financial assets purchased/sold
a) Details of Non-Performing financial assets purchased:
(` in Crore)
Particulars Current
Year
Previous
Year
1. (a) No. of accounts purchased during the year Nil Nil
(b) Aggregate outstanding Nil Nil
2. (a) Of these, number of accounts restructured during the year Nil Nil
(b) Aggregate outstanding Nil Nil
b) Details of Non-Performing financial assets sold:
(` in Crore)
Particulars Current
Year
Previous
Year
1. No. of accounts sold Nil Nil
2. Aggregate outstanding Nil Nil
3. Aggregate consideration received Nil Nil
vii) Disclosure relating to Securitisation
S. No Particulars No / Amount (Rs. in crore)
1 No of SPVs sponsored by the bank for securitization* NIL
2 Total amount of securitized assets as per books of the SPVs sponsored by
the bank
NIL
3 Total amount of exposures retained by the bank to comply with MRR as on
the date of balance sheet
NIL
a) Off-balance sheet exposures
First Loss
Others
b) On- balance sheet exposures
First Loss
Others
166
i
ii
i
ii
viii) ( ` )
77.50 64.19
302.14 224.64
ix) ( ` )
11.
i. 9.83% 9.60%
ii. 0.95% 0.91%
iii. 2.25% 2.27%
iv. 0.96% 0.99%
v. ` 9.00 8.27
vi. ` 0.06 0.05
167
4 Amount of exposures to securitization transactions other than MRR
a) Off-balance sheet exposure NIL
i) Exposure to own securitizations
First Loss
Others
ii) Exposure to third party securitizations
First Loss
Others
b) On- balance sheet exposures
i) Exposure to own securitizations NIL
First Loss
Others
ii) Exposure to third party securitizations
First Loss
Others
* Only the SPVs relating to outstanding securitization transactions may be reported here.
vii) Provisions on Standard Asset
(` in Crore)
Particulars Current Year Previous Year
Provisions towards Standard Assets-made during the year 77.50 64.19
Cumulative Provision held for Standard Assets 302.14 224.64
viii) Overseas Assets, NPAs and Revenue
(` in Crore)
Particulars Amount
Total Assets NIL
Total NPAs NIL
Total Revenue NIL
11. Business Ratios
Particulars Current Year Previous Year
i. Interest Income as a percentage to Working Funds 9.83% 9.60%
ii. Non-interest income as a percentage to Working Funds 0.95% 0.91%
iii. Operating Profit as a percentage to Working Funds 2.25% 2.27%
iv. Return on Assets 0.96% 0.99%
v. Business (Deposits plus advances) per employee (`. in crore) 9.00 8.27
vi. Net Profit per employee (`. in crore) 0.06 0.05
168
12.
( ` )
9549 81434 100140 59791 728815 335226 355937 2550692 1524268 1465770 7211622
49253 17844 204671 33888 123282 121214 313655 3458537 346736 1084417 5753497
1806 5800 2428 9894 170652 82438 15171 418737 524974 782688 2014588
209961 10857 0 16286 79285 27143 4886 57500 50000 128285 584203
16688 165 3602 7417 41417 35194 2135 12184 1988 0 120790
1772 10880 40 16341 18306 31806 12610 2606 100 21 94482
13.
i) ( ` )
i) 5375.33
3938.25
3734.69
3414.43
ii) 868.84 526.23
iii)
0.00 0.00
0.00 0.00
913.52 1573.15
7157.69 5834.07
ii) ( ` )
i) 115.85 94.37
169
12. Asset Liability Management
Maturity pattern of certain items of assets and liabilities (` in Crore)
Day 1 2 to 7 days
8 to 14days
15 to 28days
29 days to
3 months
Over 3 months
& up to 6 months
Over 6months
& up to 1 year
Over 1 year
& up to 3years
Over 3 years
& up to 5years
Over 5 years
Total
Deposits 9549 81434 100140 59791 728815 335226 355937 2550692 1524268 1465770 7211622
Advances 49253 17844 204671 33888 123282 121214 313655 3458537 346736 1084417 5753497
Investments 1806 5800 2428 9894 170652 82438 15171 418737 524974 782688 2014588
Borrowings 209961 10857 0 16286 79285 27143 4886 57500 50000 128285 584203
Foreign
Currency
assets
16688 165 3602 7417 41417 35194 2135 12184 1988 0 120790
Foreign
Currency
liabilities
1772 10880 40 16341 18306 31806 12610 2606 100 21 94482
(In compiling the above data, certain assumptions as per RBI guidelines and estimates have been made by the
management and relied upon by auditors)
13. Exposures :
i) Exposure to Real Estate Sector (` in Crore)
Category Current
Year
Previous
Year
a) Direct Exposure
i) Residential Mortgages – Lending fully secured by mortgages on residential property
that is or will be occupied by the borrower or that is rented Out of which Individual
housing loans eligible for inclusion in priority sector advances
5375.33
3938.25
3734.69
3414.43
ii) Commercial Real Estate 868.84 526.23
Lending secured by mortgages on commercial real estates
(including Non-fund based (NFB) limits)
iii) Investment in Mortgage Backed Securities (MBS) and other securities exposures:-
a) Residential 0.00 0.00
b) Commercial Real Estate 0.00 0.00
b) Indirect Exposure
Fund and Non-fund based exposures on National Housing Bank (NHB) and Housing
Finance Companies (HFCs)
913.52 1573.15
Total Exposure to Real Estate Sector 7157.69 5834.07
ii) Exposure to Capital Market (` in Crore)
S.
No.
Particulars Current Year
Previous Year
i) Direct investment in equity shares, convertible bonds, convertible debentures and units of
equity–oriented mutual funds the corpus of which is not exclusively invested in corporate
debt
115.85 94.37
170
ii) 0.00 0.00
iii) 0.00 0.00
iv) 0.00 0.00
v) 0.00 0.00
vi) 0.00 0.00
vii) 0.00 0.00
viii) 0.00 0.00
ix) 0.00 0.00
x) 25.49 21.09
141.34 115.46
14. ( ` )
695.69 382.68
195.90 223.58
88.07 32.47
17.90 1.03
0.00 1.57
0.00 0.00
0.00 0.00
997.56 641.33
15.
16. ( ` )
i)
ii)
171
ii) Advances against shares/bonds/debentures or other securities or on clean basis
to individuals for investment in shares (including IPOs/ESOPs), convertible bonds,
convertible debentures, and units of equity-oriented mutual funds;
0.00 0.00
iii) Advances for any other purposes where shares or convertible bonds or convertible
debentures or units of equity oriented mutual funds are taken as primary security;
0.00 0.00
iv) Advances for any other purposes to the extent secured by the collateral security of
shares or convertible bonds or convertible debentures or units of equity oriented mutual
funds i.e. where the primary security other than shares/convertible bonds/convertible
debentures/units of equity oriented mutual funds `does not fully cover the advances;
0.00 0.00
v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf of
stockbrokers and market makers
0.00 0.00
vi) Loans sanctioned to corporates against the security of shares / bonds/debentures or
other securities or on clean basis for meeting promoter’s contribution to the equity of new
companies in anticipation of raising resources;
0.00 0.00
vii) Bridge loans to companies against expected equity flows/issues; 0.00 0.00
viii) Underwriting commitments taken up by the banks in respect of primary issue of shares or
convertible bonds or convertible debentures or units of equity oriented mutual funds;
0.00 0.00
ix) Financing to stockbrokers for margin trading; 0.00 0.00
x) All exposures to Venture Capital Funds (both registered and unregistered) 25.49 21.09
Total Exposure to Capital Market 141.34 115.46
14. Risk Category wise Country Exposure (`. in crore)
Risk Category Exposure (net) as at March 31, 2013 (Current Year)
Provision held as at March 31, 2013 (Current Year)
Exposure (net) as at March 31, 2012 (Previous Year)
Provision held as at March 31, 2012 (Previous Year)
Insignificant 695.69 NIL 382.68 Nil
Low 195.90 NIL 223.58 Nil
Moderately Low 88.07 NIL 32.47 Nil
Moderate 17.90 NIL 1.03 Nil
Moderately High 0.00 NIL 1.57 Nil
High 0.00 NIL 0.00 Nil
Very High 0.00 NIL 0.00 Nil
Total 997.56 NIL 641.33 Nil
The net funded exposure of the Bank in respect of foreign exchange transactions with each country is within 1% of
the total assets of the Bank, hence no provision is required.
15. Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the bank
The Bank has not exceeded the Single Borrower Limit and Group Borrower Limit during the year.
16. Unsecured Advances
(`. in crore)
i) Total amount of unsecured advances for which intangible securities such as charge over the rights, licenses, authority, etc. has been taken
NIL
ii) Estimated value of such intangible collateral NIL
172
17. ( ` )
7.60 23.51
561.72 479.59
0.00 0.00
77.50 64.19
(i) 269.71 243.11
(ii) 0.00 0.00
(iii) 0.30 0.30
86.59 -0.96
0.00 -0.78
0.00 0.00
-1.42 13.39
1002.00 822.35
(19.36) 15.23
982.64 837.58
18.
19. ( ` )
1 61.14 61.14
2.
3.
4. 61.14 61.14
20.
61
5959
5949
71
01*
09
05**
01
173
17. Details of Provisions & Contingencies in Profit & Loss Account are as under: (`. in crore)
Particulars Current
Year
Previous
Year
Provision for Depreciation/Amortisation on investments 7.60 23.51
Provision for Non Performing Assets 561.72 479.59
Floating provision towards NPAs 0.00 0.00
Provision on Standard Assets 77.50 64.19
Provision for Taxation:
(i) Income Tax 269.71 243.11
(ii) Interest Tax 0.00 0.00
(iii) Wealth Tax : 0.30 0.30
Provision for Sacrifice of Interest in CDR/Non CDR A/cs 86.59 -0.96
Provision for Restructured Agriculture Advances 0.00 -0.78
Provision for Agr. Debt Waiver based on NPV 0.00 0.00
Others/Contingencies -1.42 13.39
1002.00 822.35
Deferred Tax Liabilities/(Asset) (19.36) 15.23
TOTAL 982.64 837.58
18. Disclosure of Penalties Imposed by RBI
No penalty was imposed during the year as per section 46(4) of the Banking Regulation Act 1949 for contraventions of any of the provisions of the Act or non compliance with any other requirement of the Banking Regulation Act 1949.
19. Floating Provisions (`. in crore)
S.No Particulars Current
Year
Previous
Year
1 Opening balance in Floating Provisions Account 61.14 61.14
2. The quantum of Floating Provisions made in the accounting year Nil Nil
3. Purpose and amount of draw down made during the accounting year Nil Nil
4. Closing balance in Floating Provisions Account 61.14 61.14
20. Details of Complaints/unimplemented awards of Banking Ombudsman
A. Customer Complaints
(a) No. of Complaints pending at the beginning of the year 61
(b) No. of Complaints received during the year(*) 5959
(c) No. of Complaints redressed during the year(*) 5949
(d) No. of Complaints pending at the end of the year 71
* Excluding 1593 complaints found non maintainable
B. Awards passed by the Banking Ombudsman
(a) No. of unimplemented Awards at the beginning of the year 01*
(b) No. of Awards passed by the Banking Ombudsman during the year 09
(c) No. of Awards implemented during the year 05**
(d) No. of unimplemented Awards at the end of the year (Appeal has been made before Appellate Authority) 01
*Appeal allowed and award passed by BO set aside by the Appellate Authority.
** In remaining 3 cases, 1 case BO Jaipur has cancelled the award. In 2 cases complainant has not accepted the award.
174
21.
22. tekvksa] vfxzeksa] fuos'k rFkk vutZd vkfLr;ksa (,uih,) dk ladsaæ.k
(v) tek jkf'k dk ladsaæ.k ( ` )
10213.45
14.16%
( ` )
9429.98
16.13%
( ` )
11479.99
13.45%
( ` )
584.05
23.
( ` )
15.68
0.71
0.93
17.32
24.
( ` )
1. 90442355.36 13130115.64 --- 484.36
2. 25714923.46 153659.00 --- 147.25
116157278.82 13283774.64 631.61
25.
` `
175
21. Off-balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms)
Name of the SPV sponsored
Domestic Overseas
NIL NIL
22. Concentration of Deposits, Advances, Exposures and NPAs
a) Concentration of Deposits (`. in Crore)
Total Deposits of twenty largest depositors 10213.45
Percentage of Deposits of twenty largest depositors to total Deposits of the bank 14.16%
b) Concentration of Advances (`. in Crore)
Total Advances to twenty largest borrowers 9429.98
Percentage of advances to twenty largest borrowers to total Advances of the bank 16.13%
c) Concentration of Exposure (`. in Crore)
Total Exposure to twenty largest borrowers/customers 11479.99
Percentage of Exposures to twenty largest borrowers/customers to total Exposure of the bank on
Borrowers customers
13.45%
d) Concentration of NPAs (`. in Crore)
Total Exposure to top four NPA accounts 584.05
23. Bancassurance Business :
Details of fees/remuneration received in respect of the bancassurance business for the year ended 31st March, 2013
(`. in Crore)
Name of the Company Amount
LIFE INSURANCE
SBI Life Insurance Co. Ltd. 15.68
NON LIFE INSURANCE
SBI General Insurance 0.71
Others (National Insurance Co. Ltd.) 0.93
TOTAL 17.32
24. Disclosure of Letter of Comfort (LOCs) issued by banks
S.No. Particulars USD Euro Yen INR (`. in crore)
1. Other Banks 90442355.36 13130115.64 --- 484.36
2. State Bank of India & Associates 25714923.46 153659.00 --- 147.25
TOTAL 116157278.82 13283774.64 631.61
The Bank has no subsidiary, as such no Letter of Comfort has been issued on their behalf.
25. Draw Down from Reserves
There has been a draw down of Rs.2.29 crores (previous year Rs.11.12 crores) from Investment Reserve during the year.
176
26. ,e-,l-,e-bZ-Mh- vf/fu;e ds varxZr izdVhdj.k
lw{e ,oa y?kq m|fe;ksa ls Ø; py lEifr ds Ø; ls lacaf/r lwpuk dk fooj.k
(` djksM+ esa)
Ø-la- fooj.k ewy jkf'k C;kt
1 31-03-2013 dks fdlh Hkh vkiwfrZdrkZ dh cdk;k ewy jkf'k ,oa ml ij ns; C;kt (vyx vyx n'kkZ;k tk;s)
'kwU; 'kwU;
2 o"kZ 2012&13 ds nkSjku fdlh vkiwfrZdrkZ dks fu;r fnol ds i'pkr~ fd;s x;s Hkqxrku dh jkf'k ,oa ,e-,l-,e-bZ-Mh- vf/fu;e dh /kjk 16 ds varxZr Øsrk }kjk pqdk;s x;s C;kt dh jkf'k
'kwU; 'kwU;
3 Hkqxrku (tks o"kZ ds nkSjku fu;r fnol ds i'pkr pqdk;s x;s gSa)] ftUgsa bl vf/fu;e esa mYysf[kr C;kt dks tksM+sa fcuk fd;k x;k gS] esa nsjh dh vof/ gsrq ns; ,oa Hkqxrku ;ksX; C;kt dh jkf'k
XXX 'kwU;
4 31-03-2013 dks vnÙk jgus okys mikftZr C;kt dh jkf'k XXX 'kwU;
5 vuqorhZ o"kksZa esa Hkh] tc rd y?kq m|eh dks mi;qDZr ns; C;kt dk okLro esa Hkqxrku ugha dj fn;k tkrk] Hkqxrku ;ksX; vkxs ds vnÙk C;kt dh jkf'k] tks vf/fu;e dh /kjk 23 ds varxZr dVkSrh ;ksX; O;; ds :i esa vLohdk;Z dh tkuh gSA
XXX 'kwU;
ys[kk ekudksa ls lEcfU/r izdVhdj.k
27.
,,l&5 ds rgr iwoZ vof/ vk;@O;; enksa gsrq dksbZ oLrqijd izdVhdj.k vko';d ugha gSA
28. ys[kk ekud&9 % jktLo vfHkKku
ys[kk uhfr] ftldk vuqlj.k fd;k x;k gS] ds vuqlkj ftu vk;&O;; dh enksa dk ys[kkadu udn vk/kj ij fd;k x;k gS] Hkkjrh; fjT+koZ cSad ds fn'kk funsZ'kkas ds vuq:i oLrqijd ugha le>s x;s gS] vr% izdVhdj.k dh vko';drk ugha gSA
29. ys[kk ekud 11&fons'kh fofue; njksa esa ifjorZu
fons'kh eqnzk fuf/ dk mrkj&p<+ko
30. ys[kk ekud 6&
356934875.00 340958011.50
248344660.05 190062137.43
301575092.66 316847150.83
5606251.30 14103595.25
912460879.01 861970895.01
177
26. DISCLOSURES IN TERMS OF MSMED ACT
DETAILS OF INFORMATION RELATING TO PURCHASE OF MOVEBALE PROPERTY FROM MICRO AND SMALL ENTERPRISES
(` in crore)
S.No. Particulars Principal Amount
Interest
1 The principal amount and the interest due thereon (to be shown separately)
remaining unpaid to any supplier as on 31/03/2013
NIL NIL
2 The amount of interest paid by the buyer in terms of section 16 of the
MSMED Act, along with the amount of the payment made to the supplier
beyond the appointed day during the year 2012-13.
NIL NIL
3 The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under this Act;
XXX NIL
4 The amount of interest accrued and remaining unpaid as on 31/03/2013 XXX NIL
5 The amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise, for the purpose of disallowance as a
deductible expenditure under section 23 of the Act.
XXX NIL
DISCLOSURES IN TERMS OF ACCOUNTING STANDARDS (AS)
27. AS-5 ( Net Profit or Loss for the period, prior period items and changes in accounting policies)
There are no material prior period income/expenditure items require disclosure under AS-5.
28. AS- 9 Revenue Recognition
In line with the Accounting Policy followed, items of income / expenditure accounted on cash basis are considered not material, in terms of RBI guidelines, hence do not require disclosure.
29. AS 11- Changes in foreign exchange rates:
Movement of foreign currency translation reserve
Particulars Amount
Balance as at 1st April 2012 NIL
Credited during the period 01.04.2012 to 31.03.2013 NIL
Withdrawn during the period NIL
Balance as at 31.03.2013 NIL
30. AS – 6 Depreciation Accounting
Break up of total depreciation for the year for each class of assets.
Class of assets 31.03.2013 31.03.2012
Premises 356934875.00 340958011.50
Other Fixed Assets 248344660.05 190062137.43
Computer Items 301575092.66 316847150.83
Computer Software 5606251.30 14103595.25
Total 912460879.01 861970895.01
178
31. ys[kk ekud 15&deZpkjh ykHk
cSad }kjk Hkkjrh; lunh ys[kkdkj laLFkku }kjk tkjh ys[kk ekud&15 (R)- deZpkjh ykHk dks 1 vizsy 2007 ls viuk;k x;k gSA
cSad }kjk deZpkjh ykHkksa ds fy, mn~Hkwr gq, nkf;Roksa dks rqyu i=k dh frfFk dks vius ys[kksa esa nkf;Ro ds orZeku ewY; dks ;kstuk vkfLr;ksa ds mfpr ewY; ls ?kVkdj ekU;rk iznku dh tkrh gS
vU; nh?kZdkyhu deZpkjh ykHkksa (vodk'k ;k=kk fj;k;r] #X.k vodk'k vkfn) ds laca/ esa 31-03-2013 dks cdk;k laØe.k dkyhu nkf;Ro `178-76 djksM+ gS
1) fu/kZfjr ykHk isa'ku ;kstuk ,oa minku
(v) ys[kk ekud&15 ds vuqlkj fu/kZfjr ykHk isa'ku ;kstuk ,oa xzsP;qVh ;kstuk dh fLFkfr fuEu lkj.kh ds vuqlkj gS%&(` djksM+ esa)
fooj.k isa'ku ;kstuk minku
fu/kZfjr ykHk nkf;Ro ds orZeku ewY; esa ifjorZu
01-04-2012 dks vkjafHkd fu/kZfjr ykHk nkf;Ro 2120.81 408.06
pkyw lsok ykxr 52.12 18.52
C;kt ykxr 185.57 34.69
thoukafdd gkfu;ka (ykHk) 105.28 11.32
iwoZ lsok ykxr (vfufgr ykHk) - -
iwoZ lsok ykxr (fufgr ykHk) - -
vnk fd;s x;s ykHk -128.25 -37.98
nkf;Ro ifj'kksf/r - -
31-3-2013 dks vafre fu/kZfjr ykHk nkf;Ro 2335.53 434.61
;kstuk vkfLr;ksa esa ifjorZu
01-04-2012 dks ;kstuk vkfLr;ksa dk izkjafHkd mfpr ewY; 1800.27 287.98
;kstuk vkfLr;ksa dk vuqekfur izfriQy 144.02 23.04
fu;ksDrk }kjk ;ksxnku 228.00 40.00
vnk fd;s x;s ykHk -128.25 -37.98
thoukafdd ykHk (gkfu;ka) 17.42 1.36
31-03-2013 dks ;kstuk vkfLr;ksa dk vafre mfpr ewY; 2061.46 314.40
nkf;R; ds orZeku ewY; ,oa ;kstuk vkfLr;ksa ds mfpr ewY; dk lek/ku
31-03-2013 dks fuf/d nkf;Ro dk orZeku ewY; 2335.53 434.61
31-03-2013 dks ;kstuk vkfLr;ksa dk mfpr ewY; 2061.46 314.40
deh@(vkf/D;) 274.07 120.21
vfHkKkfur iwoZ lsok ykxr --- ----
,-,l- 15 ds iSjk 59(ch) esa nh xbZ lhek ds dkj.k vfHkKkfur ugha dh x;h laifr dh jkf'k ---- ----
'kq¼ nkf;Ro@(vkfLr) 274.07 120.21
;kstuk vkfLr;ksa ij vuqHko dk lek;kstu 17.42 1.36
;kstuk ns;rkvksaa ij vuqHko dk lek;kstu -22.71 11.32
ykHk ,oa gkfu [kkrs esa vfHkKkfur 'kq¼ ykxr
pkyw lsok ykxr 52.12 18.52
C;kt ykxr 185.57 34.69
;kstuk vkfLr;ksa esa vuqekfur izfriQy -144.02 -23.04
179
31. AS – 15 Employee Benefits (Revised 2005)
The Bank has adopted Accounting Standard 15(R) - Employee Benefits, issued by the Institute of Chartered Accountants of India (ICAI), with effect from 1st April 2007.
The Bank recognizes in its books of accounts the liability arising out of Employee Benefits as the sum of the present value of obligation as reduced by fair value of plan assets on the Balance Sheet date.
In case of Other Long term employee benefits (LFC, Sick leave, etc.) the transitional liability outstanding for these benefits as on 31.03.2013 was Rs. 178.76 crores.
1) Defined Benefit Pension Plan and Gratuity
a) The following table sets out the status of the defined benefit Pension Plan and Gratuity Plan as required under AS 15:
(`. in crores)
Particulars Pension Plans Gratuity
Change in the present value of the defined benefit obligations
Opening defined benefit obligation at 1.04.2012 2120.81 408.06
Current Service Cost 52.12 18.52
Interest Cost 185.57 34.69
Actuarial losses (gains) 105.28 11.32
Past Service Cost (Non Vested Benefit) --- ---
Past Service Cost (Vested Benefit) --- ---
Benefits paid -128.25 -37.98
Liability Amortised --- ----
Closing defined benefit obligation at 31.03.2013 2335.53 434.61
Change in Plan Assets
Opening fair value of plan assets at 1.04.2012 1800.27 287.98
Expected Return on Plan assets 144.02 23.04
Contributions by employer 228.00 40.00
Benefit Paid -128.25 -37.98
Actuarial Gains (Losses) 17.42 1.36
Closing fair value of plan assets at 31.03.2013 2061.46 314.40
Reconciliation of present value of the obligation and fair value of the plan assets
Present Value of Funded obligation at 31.03.2013 2335.53 434.61
Fair Value of Plan assets at 31.03.2013 2061.46 314.40
Deficit/(Surplus) 274.07 120.21
Unrecognised Past Service Cost --- ----
Amount not recognized as asset because of limit in paragraph 59(b) of AS 15 ---- ----
Net Liability/(Asset) (c-d-e) 274.07 120.21
Experience adjustment on plan assets 17.42 1.36
Experience adjustment on plan liabilities -22.71 11.32
Net Cost recognized in the profit and loss account
Current Service Cost 52.12 18.52
Interest Cost 185.57 34.69
Expected return on plan assets -144.02 -23.04
180
'kq¼ thoukafdd gkfuo"kZ ds nkSjku vfHkKkfur 'kq¼ thoukafdd gkfu (ykHk) 87.86 9.96
vfHkKkfur iwoZ lsok ykxr (vfufgr ykHk) 46.89 30.00
vfHkKkfur iwoZ lsok ykxr (fufgr ykHk) ---- ----
pkyw o"kZ ds ykHk gkfu [kkrs dh vuqlwph 16 esa ^^deZpkfj;ksa dks Hkqxrku vkSj muds fy, izko/ku** esa lfEefyr fu/kZfjr ykHk ;kstukvksa dh dqy ykxr
228.42 70.13
;kstuk vkfLr;ksa ij izR;kf'kr izR;k; vkSj okLrfod izR;k; dk lek/ku;kstuk vkfLr;ksa ij izR;kf'kr izR;k; 144.02 23.04
;kstuk vkfLr;ksa ij thoukafdd (ykHk)@gkfu 17.42 1.36
;kstuk vkfLr;ksa ij okLrfod izR;k; 161.44 24.40
rqyui=k esa vfHkKkfur vkjafHkd ,oa vafre 'kq¼ nkf;Ro dk lek/ku01-04-2012 dks vkjafHkd 'kq¼ nkf;Ro 179.87 30.08
ykHk ,oa gkfu [kkrs esa vfHkKkfur O;; 228.42 70.13
?kVkb;sa% fu;ksDrk }kjk ;ksxnku 228.00 40.00
31-03-2013 dks rqyu i=k esa 'kq¼ nkf;Ro@lEifÙk vfHkKkfur 180.29 60.21
124.89 43.67
vkfLr;ksa dh Js.khxzsP;qVh dks"k isa'ku dks"k vU; ;kstuk,¡
jkf'k fu;ksftr vkfLr;ksa dk
izfr'kr
fu;ksftr vkfLr;ksa dk
izfr'kr
jkf'k fu;ksftr vkfLr;ksa dk
izfr'krdsUæh; ljdkj dh izfrHkwfr;k¡ 98.73 31.40 626.03 30.37 - -
jkT; ljdkj dh izfrHkwfr;k¡ 54.32 17.28 439.65 21.33 - -
lkoZtfud {ks=k bZdkbZ;ksa ds ca/i=k 62.73 19.95 252.84 12.27 - -
vU; ca/i=k 0.00 0.00 0.00 0.00 - -
cSad dh fe;knh tek,¡ 48.73 15.50 526.58 25.54 - -
fo'ks"k tek,¡ 0.00 0.00 0.00 0.00 - -
chek ;kstuk,¡ 19.52 6.21 0.00 0.00 - -
cSad [kkrk 6.17 1.96 2.34 0.11 - -
vU; (E;wpqvy iaQM vkfn) 24.20 7.70 214.02 10.38 - -
dqy 314.40 100.00 2061.46 100.00 - -
mi;qZDr of.kZr esa ls LVsV cSad lewg esa fuos'k
(LVsV cSad rFkk bldh lekuq"kaxh@lg m|e)
xzsP;qVh dks"k isa'ku dks"k vU; ;kstuk,¡
ca/i=k 12.50 3.97 87.00 4.22 - -
cSad tek,¡ 6.17 1.96 2.34 0.11 - -
cSad dh fe;knh tek,¡ 48.73 15.50 526.58 25.54 - -
181
Net actuarial losses
(Gain) recognized during the year 87.86 9.96
Past Service Cost (Non Vested Benefit) Recognized 46.89 30.00
Past Service Cost (Vested Benefit) Recognized ---- ----
Total costs of defined benefit plans included in current year P&L under
Sch 16 ‘Payments to and provisions for employees’
228.42 70.13
Reconciliation of expected return and actual return on Plan Assets
Expected Return on Plan Assets 144.02 23.04
Actuarial Gain/ (loss) on Plan Assets 17.42 1.36
Actual Return on Plan Assets 161.44 24.40
Reconciliation of opening and closing net liability recognized in Balance Sheet
Opening Net Liability as at 1.04.2012 179.87 30.08
Expenses as recognized in profit and loss account 228.42 70.13
Less : Employers Contribution 228.00 40.00
Net liability/(Asset) recognized in Balance Sheet as at 31.03.2013 180.29 60.21
Expected contribution in the next financial year (i.e. 2013-14) 124.89 43.67
Particulars of Investments under Plan Assets of Gratuity and Pension Fund and any other Plan as on 31st March 2013
Gratuity Fund Pension Fund Any other plan
Category of assets Amount % of Plan
Assets
Amount % of Plan
Assets
Amount % of Plan
Assets
Central Government Securities 98.73 31.40 626.03 30.37 - -
State Government Securities 54.32 17.28 439.65 21.33 - -
PSU Bonds 62.73 19.95 252.84 12.27 - -
Other Bonds 0.00 0.00 0.00 0.00 - -
FDR/TDR of Banks 48.73 15.50 526.58 25.54 - -
Special Deposits 0.00 0.00 0.00 0.00 - -
Insurance Scheme 19.52 6.21 0.00 0.00 - -
Bank A/C 6.17 1.96 2.34 0.11 - -
Others (Mutual Fund etc.) 24.20 7.70 214.02 10.38 - -
Total 314.40 100.00 2061.46 100.00 - -
Out of above following Investments are made in State Bank Group
(State Bank and its Subsidiaries/ joint Ventures)
Gratuity Fund Pension Fund Any other plan
Category of assets Amount % of Plan
Assets
Amount % of Plan
Assets
Amount % of Plan
Assets
Bonds 12.50 3.97 87.00 4.22 - -
Bank Deposits 6.17 1.96 2.34 0.11 - -
FDR/TDR of Banks 48.73 15.50 526.58 25.54 - -
182
chek ;kstuk,¡ 19.52 6.21 0.00 0.00 - -
vU; (E;wpqvy iaQM vkfn) 4.61 1.47 54.41 2.64 - -
91.53 29.11 670.33 32.51 - -
cV~Vk nj 8.50 8.50 8.50 8.75 - -
;kstuk vkfLr;kas ij vuqekfur izfriQy nj
8.00 8.00 8.50 8.00 - -
osru of¼ 3.50 3.50 3.50 3.50 - -
vU; eq[; /kj.kk;sa 2.00 2.00 2.00 2.00 - -
`
0 .93 0 .23
0. 98 4.21
- -
8.50% 8.50%
3.50% 3.50%
2.00% 2.00%
21.64 5.68
1.83 4.30
0.71 0.00
0.00 0.00
0.00 0.00
0.00 0.00
183
Insurance Scheme 19.52 6.21 0.00 0.00 - -
Others(Mutual Fund etc.) 4.61 1.47 54.41 2.64 - -
Total 91.53 29.11 670.33 32.51 - -
Principal Actuarial Assumptions
Gratuity Fund Pension Fund Any other plan
Category of assets Current
Year
Previous
Year
Current
Year
Previous
Year
Current
Year
Previous
Year
Discount Rate 8.50 8.50 8.50 8.75 - -
Expected Rate of Return on Plan assets 8.00 8.00 8.50 8.00 - -
Salary escalation 3.50 3.50 3.50 3.50 - -
Attrition Rate 2.00 2.00 2.00 2.00 - -
Particulars about expense recognized in P&L Account in respect of Defined Contribution Plans
(Rs. in crores)
Name of the Defined Contribution Plan Amount debited to P&L
in 2011-12
Amount debited to P&L
in 2012-13
Contribution to Employee Provident Fund 0 .93 0 .23
New Pension Scheme (NPS) 0. 98 4.21
Other Plans (If any) - -
Other Long Term Employee Benefits
Principal Actuarial Assumptions for Leave Encashment
Particular Current Year Previous Year
Discount Rate 8.50% 8.50%
Salary Escalation 3.50% 3.50%
Attrition Rate 2.00% 2.00%
Name of the long term employee benefit Amount debited to
P&L in 2011-12
Amount debited to
P&L in 2012-13
Privilege Leave (Encashment) inculding Leave encashment at
the time of retirement
21.64 5.68
Leave Travel and Home Travel Concession (Encashment/
Availment)
1.83 4.30
Sick Leave 0.71 0.00
Silver jubilee award 0.00 0.00
Resettlement expenses on Superannuation 0.00 0.00
Casual Leave 0.00 0.00
184
0.00 0.00
0.00 0.00
24.18 9.98
o"kZ 2012&2013 ds nkSjku vfHkKkfur ,oa izko/kfur nh?kZdkfyd deZpkjh ykHkksa dk fooj.k fuEufyf[kr gSa%&
1 vodk'k udnhdj.k 173.72 5.68 179.40
2 vodk'k fdjk;k fj;k;r 19.65 4.30 23.95
3 flYoj tqcyh izko/ku 2.28 0.00 2.28
4 :X.k vodk'k 14.69 0.00 14.69
5. iquZLFkkiuk O;; 1.90 0.00 1.90
tksM+ 212.24 9.98 222.22
32.
Hkkjrh; fj”koZ cSad ds i=k la- chihchlh 81@21-04-018@2006&07 fnukad 18 vizSy] 2007 ds vuqlkj cSad us fuEufyf[kr [k.Mksa dh izkFkfed@O;olk; [k.M ds :i esa igpku dh gS
(v) dks"k ifjpkyu
(c) dEiuh@Fkksd cSafdax
(l) [kqnjk cSafdax
(n) vU; cSafdx ifjpkyu
dEiuh@Fkksd cSafdax ,oa [kqnjk cSafdax ifjpkyu lzksr tqVkus okyh izeq[k bdkbZ gSA dks"k [k.M dks vU; nks cSafdax [k.Mksa ls fuf/ ,sls ewY; ij feyrh gS] ftls vU; cSafdax ifjpkyu dh tekvksa dh ykxr ,oa fuf/ ,d=k djus ij gq, ifjpkyu O;; dks tksM+dj fudkyk tkrk gSA
vk; ,oa O;; rFkk vkfLr;ksa@nkf;Roksa dk vkoaVu
(v) fof'k"V [k.M ls lh/s vk; ,oa O;;ksa ,oa vkfLr;ksa@nkf;Roksa dks lEcfU/r [k.M dks vkoafVr fd;k tkrk gSA
(c) [k.Mksa ls lh/s lacaf/r uk gksus okyh enksa dks [kqnjk ,oa Fkksd [k.M dks fd;s x;s O;olk;@deZpkfj;ksa dh la[;k ds ewY;kuqikr@ lh/s vk; ls lacaf/r ewY;kuqikr esa vkoafVr fd;k tkrk gSA
cSad ds ikl vfo'ks"k lEifÙk;ka@nkf;Ro ,oa vk;@O;; gS ftUgsa fdlh fo'ks"k [k.M ls lacaf/r ugha fd;k tk ldrk gS vr% mUgsa xSj vkoafVr esa n'kkZ;k gSA
185
Retirement Award 0.00 0.00
Others 0.00 0.00
Total 24.18 9.98
Long term Employee Benefits:
Details of long-term employee benefits that are recognised and provided during the year 2012-13 are as under:-
(`. in crores)
S.No Details Of Long Term Employee Benefits
Opening Balance as on 01.04.2012
Current Year Liability Closing Balance as on 31.03.2013
1 Leave Encashment 173.72 5.68 179.40
2 L F C 19.65 4.30 23.95
3 Silver Jubilee Provision 2.28 0.00 2.28
4 Sick Leave 14.69 0.00 14.69
5. Resettlement Expenses 1.90 0.00 1.90
Total 212.24 9.98 222.22
32. AS-17 : Segmental Reporting
In terms of RBI Cir. No. BP.BC.81/21.04.018/2006-07 dated 18th April 2007, the Bank has identified following segments as Primary / Business Segment:
(a) Treasury Operations
(b) Corporate/Wholesale Banking
(c) Retail Banking
(d) Other Banking Operations
Pricing of Inter-segmental transfers:
The Corporate / wholesale Banking and Retail Banking Operations are the primary resource mobilizing unit. The treasury segment receives funds from the other two Banking Operations unit at a cost, which is computed on cost of deposits of Other Banking Operations plus operating expense incurred for mobilizing funds.
Allocation of Income and Expenses and Assets/Liabilities:
a) Income and Expenses and Assets/Liabilities directly attributed to particular segment are allocated to the relative
segment.
b) Items that are not directly attributable to segments are allocated to retail and wholesale segments in proportion to
the business managed / ratio of number of employees/ ratio of directly attributable income.
The bank has certain common assets /liabilities and income / expense that cannot be attributed to any particular
segment and hence the same are treated as unallocated.
186
(` djksM+ esa)
fooj.k tksM+
jktLo 1554.13 1212.77 4133.39 3258.71 4108.07 3707.11 -- -- 9795.59 8178.59
?kVkb;s % xSj vkoafVr varj [kaM jktLo
1571.12 1288.26
ifjpkyu ls vk; 8224.47 6890.33
ifj.kke -109.96 -176.88 643.39 578.25 639.46 657.83 -- -- 1172.90 1059.19
xSj&vkoafVr O;; 192.01 148.52
lapkyu ykHk (dj iwoZ ykHk) 980.89 910.67
250.65 258.64
vlk/kj.k ykHk@gkfu -- --
fuoy ykHk 730.24 652.03
[k.M vkfLr;k¡ 22631.63 17465.37 37789.23 31886.28 25536.70 22953.71 -- -- 85957.56 72305.35
xSj&vkoafVr vkfLr;k¡ 59.27 222.79
dqy vkfLr;k¡ 86016.83 72528.14
[k.M ns;rk,¡ 22606.03 17469.33 33631.71 28269.58 22727.19 20350.19 -- -- 78964.93 66089.10
xSj&vkoafVr ns;rk,¡ 2287.76 2274.16
dqy ns;rk,a 81252.69 68363.26
Hkkjr esa leLr ifjpkyuksa dks ,d izfrosnuh; [k.M ekuk x;k gS ,oa blhfy, xkS.k@ HkkSxksfyd [k.M dks vko';d ugha le>k x;k gSA
33 .
Hkkjrh; lunh ys[kkdkj laLFkku }kjk tkjh ys[kk ekud&18 ds ^lEcfU/r i{k izdVhdj.k* lEcU/h iSjk 9 ds vuqlkj] cSad ds jkT; fu;fU=kr miØe gksus ds dkj.k vU; jkT; fu;fU=kr miØeksa ds lkFk lEcU/ksa ,oa laO;ogkjksa ds izdVhdj.k dh vko';drk ugha gSA rFkkfi] Hkkjrh; lunh ys[kkdkj laLFkku }kjk tkjh ys[kk ekud 18 ds rgr izdVhdj.k ds mís'; ls fuEufyf[kr dks cSad }kjk lEcfU/r i{k le>k x;k%
i) izcU/ funs'kd dks lfEefyr djrs gq, lHkh iw.kZdkfyd funs'kd (ukekafdr funs'kd ds vykok)
1. Jh f'ko dqekjizcU/ funs'kd
osru ,oa HkÙks% ` 19,85,207.48 'kwU;
o"kZ 2012&13 ds fy;s fu"iknu lgc¼ izksRlkgu ` 12,69,500.00 'kwU;
ii) mDr en (i) esa lUnfHkZr lHkh funs'kdksa ds lEcU/h 'kwU;
iii) mDr en (i) esa lUnfHkZr funs'kdksa ds Lo;a ds LokfeRo ds miØeksa dh lwph 'kwU;
blds vfrfjDr ys[kk ekud&18 ds iSjk 5 ds vuqlkj cSadj&xzkgd lEcU/h laO;ogkjksa dk izdVhdj.k vko';d ugha gSA mi;qZDr of.kZr lEcfUèkr i{kksa ds lkFk xSj&cSafdax ysunsu fuEukuqlkj gS%
lEcfU/r i{k dk uke
dqN ugha dqN ugha dqN ugha
187
PART – A: BUSINESS SEGMENTS
(`. in crore)
Particulars BUSINESS SEGMENTS
TOTALTreasury Corporate/ Wholesale Banking
Retail Banking
Other Banking Operations
Current Year
Prev. Year Current Year
Prev. Year Current Year
Prev. Year
Current Year
Prev.Year
Current Year
Previous Year
Revenue 1554.13 1212.77 4133.39 3258.71 4108.07 3707.11 -- -- 9795.59 8178.59
Less Inter Segment Revenue (Unallocated)
1571.12 1288.26
Income from Operations 8224.47 6890.33
Result -109.96 -176.88 643.39 578.25 639.46 657.83 -- -- 1172.90 1059.19
Unallocated Expenses 192.01 148.52
Operating Profit (Profit before tax)
980.89 910.67
Provision for Taxes 250.65 258.64
Extra-ordinary profit/loss -- --
Net Profit 730.24 652.03
Segment Assets 22631.63 17465.37 37789.23 31886.28 25536.70 22953.71 -- -- 85957.56 72305.35
Unallocated Assets 59.27 222.79
Total Assets 86016.83 72528.14
Segment Liabilities 22606.03 17469.33 33631.71 28269.58 22727.19 20350.19 -- -- 78964.93 66089.10
Unallocated Liabilities 2287.76 2274.16
Total Liabilities 81252.69 68363.26
PART B: GEOGRAPHIC SEGMENT
The entire Indian Operations are being treated as a single reportable segment and hence secondary / geographic segment is not considered necessary.
33. AS-18 : Related party disclosures
As per para 9 of the Accounting Standard 18 issued by the ICAI on “Related party disclosures” the Bank, being a state controlled enterprise is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. However, the Bank has considered the following as related parties for the purpose of disclosure under AS-18 issued by the ICAI:
i) All whole time Directors on the Board including Managing Director (excluding Nominee Director).
S.No. Name & designation Remuneration paid during the year 01.04.2012 to 31.03.2013
Amounts due to the bank as at 31.03.2013
1. Shri Shiva Kumar
Managing Director
Salary & Allow. : `. 19,85,207.48 Nil
Performance Linked Incentive for
the Year 2012-13 `. 12,69,500.00 Nil
ii) Relatives of the Directors referred to in item (i) above. NIL
iii) List of enterprises owned by the Directors referred to in item (i) above. NIL
Further in terms of the paragraph 5 of AS 18, transactions in the nature of banker-customer relationship are not required to be disclosed. The non-banking transactions with the aforesaid parties are, as under:
NAME OF THE TRANSACTING
RELATED PARTY
DESCRIPTION OF THE RELATED
PARTY
TRANSACTIONS
NIL NIL NIL
188
34.
dEiuh dh ifjpkfyr iV~Vksa ds laca/ esa egRoiw.kZ iV~Vk O;oLFkk;sa] tSls lafØ;k bdkb;k¡] dk;kZy;] vkokl bR;kfn gSaA ;s iV~Vs lkekU; ,d o"kZ ds vf/d ;k yEch vof/ (lekIr iV~Vk ds vykok) ds fy;s gksrs gSa tks fujLrhdj.k ;ksX; gksrs gSa lkekU;r% vkilh lgefr ls ikjLifjd lgefr ;ksX; 'krksZ ij uohuhdj.k ;ksX; gksrs gSaA dqy ns; iV~Vk fdjk;k ykHk gkfu [kkrs esa fdjk;k ds :i esa izHkkfjr fd;k x;k gSA
35.
fiNyk o"kZewy vtZu izfr 'ks;j (`. esa) 104.32 95.05
vofefJr vtZu izfr 'ks;j ( `. es) 104.32 95.05
lerk 'ks;j/kjdksa ds fy, miyC/ dj ds i'pkr~ 'kq¼ ykHk• (`.yk[kksa esa) 73024 65203
lerk 'ks;jksa dh Hkkfjr vkSlr la[;k• 70000000 68600000
ewy vtZu izfr 'ks;j• (`. esa) 104.32 95.05
vokfefJr vtZu izfr 'ks;j • (`. esa) 104.32 95.05
izfr 'ks;j vafdr ewY;• (`. esa) 10.00 10.00
36.
cSad dh dksbZ leuq"kaxh@lg;ksxh bdkbZ ugha gS vr% bl ckcr lwpuk 'kwU; gSA
37.
(` djksM+ esaa)
fiNyk o"kZ
Mwcr ,oa lafnX/ ½.kksa ds fy, izko/ku 18.96 0.00
vU; izko/ku 11.34 11.80
lsok fuo`fÙk gsrq izko/ku 63.07 61.23
vU; deZpkjh ykHkksa gsrq izko/ku 7.04 5.65
osru cdk;k gsrw izko/ku 11.36 0.00
ys[kk ekud & 15 (la'kksf/r 2005) dks ykxw djus ls mRi laØe.k dkyhu nkf;Roksa ls cuh vkLFkfxr dj vkfLr;ka
42.54 42.54
;ksx 154.31 121.22
vkLFkfxr dj nkf;Ro
mifpr] ysfdu vns; C;kt 140.30 126.77
fLFkj vkfLr;ksa ij ewY;ßkl 1.06 0.85
;ksx 141.36 127.63
12.95 (6.41)
189
34. AS-19: Leases:
The company's significant leasing arrangements are in respect of operating leases for premises like operational units, offices, residences etc. These leases, which are not non-cancelable are generally for more than one year or for longer periods (except expired leases) and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent to P&L accounts.
35. AS-20: Earnings per Share
Particulars Current Year Previous Year
Basic EPS (in `.) 104.32 95.05
Diluted EPS (in `.) 104.32 95.05
Calculation of Basic EPS
Net Profit after Tax available for Equity share holders (`. in lacs) 73024 65203
Weighted average number of equity shares 70000000 68600000
Basic earnings per share (in `. ) 104.32 95.05
Diluted earnings per share (in `. ) 104.32 95.05
Nominal Value per share (in `.) 10.00 10.00
36. AS-21: Consolidated Financial Statement
Bank has no Subsidiary/Associates hence the information in this regard is ’NIL’.
37. AS-22: Deferred Taxes
The components of deferred tax asset/liability as on 31.03.2013 are as under:
(`. in crore)
Particulars Current Year Previous Year
Deferred Tax Assets
Provision for Bad & Doubtful debts 18.96 0.00
Other Provisions 11.34 11.80
Provision for Retirement Benefits 63.07 61.23
Provision for other staff benefits 7.04 5.65
Provision for Wage Arrear 11.36 0.00
DTA created out of transitional liabilities arising due to implementation of
AS-15 (Revised 2005)
42.54 42.54
Total 154.31 121.22
Deferred Tax Liabilities
Interest accrued but not due 140.30 126.77
Depreciation on Fixed Assets 1.06 0.85
Total 141.36 127.63
Net Deferred Tax Asset/(Liability) 12.95 (6.41)
190
38.
cSad dh dksbZ leuq"kaxh@lg;ksxh bdkbZ ugha gS] vr% bl ckcr lwpuk 'kwU; gSA
39.
ifjpkyu dh lekfIr ds ifj.kke Lo:i cSd }kjk vkfLr;ksa dh izkfIr rFkk ns;rkvksa esa dksbZ dVkSrh ugha gqbZ gS rFkk u gh fdlh ifjpkyu dks lekIr djus ds fu.kZ; ftlesa mi;qZÙkQ izHkko gksxk] dks cSd us vafre :i fn;k gSA
40
lkWÝVos;j] tks gkMZos;j dk vfoHkkT; Hkkx gS] LFkkbZ lEifRr;ksa lfgr jkf'k ` 0-56 djksM+ (iwoZ o"kZ `0-97 djksM+) ds vykok dksbZ vewrZ vkfLr;ka ugha gSaA
41.
izca/u ds fopkj esa] cSad dh fdlh vkfLr esa {kj.k ugha gqvk gS ftl ij ys[kkekud 28 ^^vkfLr;ksa esa {kj.k** ykxw gksrk gSA
42.
(d) lekfJr nkf;Roksa gsrq cuk, izko/ku dk lapyu
(` djksM+ esa)
vFk 'ks"k 36.37 22.97
o"kZ ds nkSjku miyC/ djkbZ xbZ jkf'k;k¡ 2.18 15.96
o"kZ ds nkSjku iz;ksx dh xbZ jkf'k;k¡ 0.00 0.00
o"kZ ds nkSjku izR;korZu 3.66 2.56
bfr 'ks"k 34.89 36.37
n'kkZ;s x, nkf;Ro U;k;ky;@iapfu.kZ;@U;k;ky; ds ckgj le>kSrk] vihyksa ds fuLrkj.k] ek¡xh xbZ jkf'k] lafonkxr ckè;rkvksa] lEcf/r i{kdkjksa }kjk dh xbZ ek¡x ,oa izxfr ij vk/kfjr gSA
43. fiNys o"kZ ds vkadM+ksa dks pkyw o"kZ ds vkadM+ksa ds lkFk rqyuh; cukus ds fy,] tgka Hkh vko';d gS] iqulZewfgr ,oa iquoZxhÑr fd;k x;k gSA
191
38. AS-23 : Accounting for Investments in Associates in consolidated Financial Statements
Bank has no Subsidiary/Associates hence the information in this regard is ’NIL’.
39. AS-24: Discontinuing Operations
There has been no discontinuation of operations that has resulted in shedding of liability and realization of the assets by the Bank or decision to discontinue an operation, which will have the above effect, has been finalized by the Bank.
40. AS-26: Intangible Assets
There are no intangible assets except Software forming integral part of hardware included under Fixed Assets amounting to `. 0.56 crore ( prev. Year `. 0.97 crore)
41. AS-28: Impairment of Assets
In the opinion of the Management, there is no impairment to the assets during the year to which Accounting Standard 28 – “Impairment of Assets” applies.
42. AS-29: Statement of Provisions, Contingent liability & Contingent Assets
a) Movement of provisions for contingent liabilities
(`. in crore)
Particulars Current Year Previous Year
Opening Balance 36.37 22.97
Provided during the year 2.18 15.96
Amount used during the year 0.00 0.00
Reversed during the year 3.66 2.56
Closing Balance 34.89 36.37
b) Under Schedule 12 on Contingent Liabilities
Such liabilities are dependent upon the outcome of Court/arbitration/out of Court settlement, disposal of appeals and the amount being called up, terms of contractual obligations, development and raising of demand by concerned parties.
43. Previous year's figures have been regrouped and reclassified wherever necessary to make these comparable with the
current year's figures.
192
‘
d- ifjpkyu dk;Zdykiksa ls udnh izokg 22345569 (18247292)
[k fuos'k dk;Zdykiksa ls udnh izokg (863918) (464220)
x foÙkiks"k.k dk;Zdykiksa ls udnh izokg (2659043) 2786163
udnh ,oa udnh lerqY; esa fuoy ifjorZu 18822608 (15925349)
?k o"kZ ds vkjEHk esa udnh ,oa udnh lerqY; 44543310 60468659
M+ o"kZ dh lekfIr ij udnh ,oa udnh lerqY; (d$[k$x$?k) 63365918 44543310
d- ifjpkyu dk;Zdykiksa ls udnh izokg
dj iwoZ fuoy ykHk 9808848 9106740
lek;kstu %
ewY;ßkl izHkkj 571503 538239
lafnX/ ,oa Mwcr ½.kksa ds fy, izko/ku (pyu izko/ku lfgr) 5617196 4795864
ekud vkfLr;ksa ds fy, izko/ku 775000 641850
fuos'kksa ij ewY;ßkl@ifj'kks/u 75989 235123
iV~Vk lekuhdj.k 0 0
vodk'k udnhdj.k ds fy, izko/ku 56800 216400
cksul o vU; deZpkjh ykHkksa ds fy, izko/ku 42390 341600
osru cdk;k dk izko/ku 350000 0
vU; izko/ku 851705 116568
18149431 15992385
?kVk;k&izR;{k dj 2043258 1841018
mi&;ksx 16106173 14151367
lek;kstu %
tek jkf'k;ksa esa of¼@ (deh) 105441301 77197665
m/kj jkf'k;ksa esa of¼@ (deh) 28870538 (589356)
fuos'kksa esa (of¼)@ deh (34605552) (31722804)
vfxzeksa esa (of¼)@ deh (89389504) (85182719)
vU; nkf;Roksa esa of¼@ (deh) (4340790) 5168795
vU; lEifr;ksa esa (of¼)@ deh 263403 2729761
ifjpkyu dk;Zdykiksa }kjk iznÙk fuoy udnh 22345569 (18247294)
[k- fuos'k dk;Zdykiksa ls udnh izokg
fLFkj vkfLr;ksa esa (of¼)@ deh (863918) (464220)
fuos'k dk;Zdykiksa ls fuoy udnh (863918) (464220)
193
Statement of cash flow for the year ended 31st March 2013
(‘000 omitted)
Current Year Previous Year
A. CASH FLOW FROM OPERATING ACTIVITIES 22345569 (18247292)
B. CASH FLOW FROM INVESTING ACTIVITIES (863918) (464220)
C. CASH FLOW FROM FINANCING ACTIVITIES (2659043) 2786163
NET CHANGE IN CASH AND CASH EQUIVALENTS 18822608 (15925349)
D. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 44543310 60468659
E. CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (A+B+C+D) 63365918 44543310
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before taxes 9808848 9106740
Adjustment for :
Depreciation Charges 571503 538239
Provision for Bad & Doubtful Debts (including floating provisions) 5617196 4795864
Provision for Standard Assets 775000 641850
Depreciation /Amortisation for Investments 75989 235123
Lease Equalistion 0 0
Provision for Leave Encashment 56800 216400
Provision for bonus and Other staff benefits 42390 341600
Provision for wage arrears 350000 0
Other Provisions 851705 116568
18149431 15992385
Less: Direct Taxes 2043258 1841018
SUB- TOTAL 16106173 14151367
ADJUSTMENT FOR:
Increase/(Decrease) in Deposits 105441301 77197665
Increase/(Decrease) in Borrowings 28870538 (589356)
(Increase)/Decrease in Investments (34605552) (31722804)
(Increase)/Decrease in Advances (89389504) (85182719)
Increase/(Decrease) in Other Liabilities (4340790) 5168795
(Increase)/Decrease in Other Assets 263403 2729761
NET CASH PROVIDED BY OPERATING ACTIVITIES 22345569 (18247294)
B. CASH FLOW FROM INVESTING ACTIVITIES
(Increase)/Decrease in Fixed Assets (863918) (464220)
NET CASH FROM INVESTING ACTIVITIES (863918) (464220)
194
‘
x- foÙkiks"k.k dk;Zdykiksa ls udnh izokg
lanÙk ykHkka'k (1173830) (744687)
v/huLFk ca/i=kksa ij C;kt (1485213) (1469150)
v/huLFk ca/i=kksa dk fuxZe 0 5000000
foÙkiks"k.k dk;Zdykiksa }kjk iznÙk fuoy udnh 2659043 2786163
?k- o"kZ ds vkjEHk esa udnh ,oa udnh lerqY;
gkFk udnh (blesa fons'kh djsalh uksV rFkk lksuk lfEefyr gS) 3514197 3185789
Hkkjrh; fj”koZ cSad eas 'ks"k 39856955 50582625
cSadksa esa 'ks"k rFkk ekax ij ,oa vYi lwpuk ij izkI; /u 1172158 44543310 6700245 60468659
M- o"kZ ds var esa udnh ,oa udnh lerqY;
gkFk udnh (blesa fons'kh djsalh uksV rFkk lksuk lfEefyr gS) 3529964 3514197
Hkkjrh; fj”koZZ cSad esa 'ks"k 58028636 39856955
cSadksa esa 'ks"k rFkk ekax ij ,oa vYi lwpuk ij izkI; /u 1807318 63365918 1172158 44543310
( -11617) ( 082103) ( 099374) ( 12705) ( 80527) ( 072332)
195
(‘000 omitted)
Current Year Previous Year
C. CASH FLOW FROM FINANCING ACTIVITIES
Dividend Paid (1173830) (744687)
Interest on Subordinated Bonds (1485213) (1469150)
Issue of Subordinated Bonds 0 5000000
NET CASH FROM FINANCING ACTIVITIES (2659043) 2786163
D. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
Cash in hand (including foreign currency notes and gold) 3514197 3185789
Balances with Reserve Bank of India 39856955 50582625
Balances with Banks and Money at Call and Short Notice 1172158 44543310 6700245 60468659
E. CASH AND CASH EQUIVALENT AT THE END OF THE YEAR
Cash in hand (including foreign currency notes and gold) 3529964 3514197
Balances with Reserve Bank of India 58028636 39856955
Balances with Banks and Money at Call and Short Notice 1807318 63365918 1172158 44543310
B. SRIRAMManaging Director
PRATIP CHAUDHURIChairman
RAJEEV N. MEHRA PRADEEP KUMAR SANYAL MIHIR KUMAR
SANJAY KUMAR SINGHChief General Manager
(Retail Banking)
SANTANU MUKHERJEE Chief General Manager (Commercial Banking)
MS. MALVIKA SINHA RAJESH T. MANUBARWALA BHARAT RATTAN
KISHOR BABU C. P.Dy. General Manager (Finance & Accounts)
NARAYANA SWAMY R.General Manager
(Treasury, F&A) & CFO
ARUN K. SARAF SUNIL DUTT BALI D.K. JAIN
Delhi May 06, 2013
For S. DAGA & CO.
Chartered Accountants(CA SHANTI LAL DAGA)
(M.No. F-11617)
PARTNER
For AGARWAL ANIL & CO.
Chartered Accountants
(CA ANIL AGRAWAL)
(M. No. 082103)
PARTNER
Firm Reg. No. 003222 N
For M.K. AGGARWAL & CO.
Chartered Accountants
(CA ATUL AGGARWAL)
(M. No. 099374)
PARTNER
Firm Reg. No. 001411 N
For CHATURVEDI & CO.
Chartered Accountants(CA SATISH CHANDRA
CHATURVEDI)
(M. No.12705)PARTNER
Firm Reg. No. 302137 E
For UBEROI SOOD &
KAPOOR
Chartered Accountants(CA SANJAY SOOD)
(M. No.80527)PARTNER
Firm Reg. No. 001462 N
For P S D & ASSOCIATES
Chartered Accountants(CA PRAKASH SHARMA)
(M. No. 072332)PARTNER
Firm Reg. No. 004501 C
As per our separate report of even date
DIRECTORS
196
The Managing Director at a press conference highlighting Financial Results for the year 2012-13