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we are with you!
th12 Annual Report 2016-17
Empowering Rural Lives
Chairman
With Best Compliments from
V. Narasi Reddy
Andhra Pradesh Grameena Vikas Bank
Head Office, Warangal ‐ 506 001
01
02
Vision
Repositioning the Bank in competitive rural market and accomplish the leadership spot in Rural Banking. Aspiring to
realize the vision of excelling in Rural Credit and SME. Pursuing the best practices for delivering the value added service
to the customers by transforming the key branches into profit and business centers.
Mission
With efficiency and service each one of us works in tandem to deliver quality rural service, no matter where our
customers choose to experience it. With the advantage of a large network in the rural hinterland, it is our duty and
obligation to serve the rural masses, the deprived and denied, retail and agriculture sectors through improved
processes, deployment of technology, with an emphasis on employment of rural youth, augmentation of agricultural
production, upliftment of the downtrodden and unabated service to rural poor with commitment to the sacred task of
rural development and women's empowerment.
Values
Commitment for rural development
Excellence in customer service
Respect to systems and procedures
Team Synergy
Vision, Mission and Values
we are with you! Annual Report 2016-17
03
Andhra Pradesh Grameena Vikas Bank
Head Office : Warangal
Date: 30.06.2017
The Secretary,
Ministry of Finance, Dept. of Financial Serivies
Banking Division, Government of India
Jeevan Deep Buildings, Parliament Street,
New Delhi-110001
Dear Sir,
In accordance with the provisions of Section 20 of the Regional Rural Banks Act 1976, I forward herewith
the following documents.
stA Report of Board of Directors as to the Bank's working and its activities during the period 1 April 2016 to st31 March 2017.
stA copy of the audited Balance Sheet and Profit and Loss Account for the year ended 31 March 2017.
stA copy of the Auditor's report in relation to the Bank's accounts for the period 1 April 2016 to st31 March 2017.
Letter of Transmittal
Yours faithfully,
(V. Narasi Reddy)Chairman
we are with you! Annual Report 2016-17
What's inside
1. Board of Directors 06
2. Executives Team 07
3. Chairman's Message 11
4. Key Performance Indicators 17
5. Board of Directors Report 21
6. Auditor's Report 54
7. Balance Sheet, Profit & Loss 56
Account and Schedules
S.No. Particulars Page No.
04
we are with you! Annual Report 2016-17
Srikakulam
Saraswathi Complex, Baker sahed peta
Srikakulam 532001,
Tel 08942-221041, Fax 08942-221040
Vizianagaram
8-12-64/1, Beside Himagiri Theatre,
Vizianagaram 536002,
Tel 08922-273956, Fax 08922-274221
Visakhapatnam
52-14-77/1, APHSC Building,
Near Eenadu office, Seethammadhara
Visakhapatnam
Tel 0891-2713942, Fax 0891-2746341
Parvathipuram
Vizianagaram Dist. 1435-27-112, Ist Floor,
By Pass Road, Opp. Sai Ram College
Tel : 08936-220498
Regions in Telangana StateKhammam
Wyra Road, Khammam 507001
Tel 08742-226816, Fax 08742-228972
Nalgonda
Ramgiri, Nalgonda 508001
Tel 08682-229943, Fax 08682-229945
Warangal
ABK Mall,
Ramnagar, Hanamkonda
Warangal 506001
Tel 0870-2577884
Fax 0870-2568010
Mahabubnagar
8-3-3/5/F, Mettugadda
Mahabubnagar 509001
Tel 08542-242861
Fax 08542-242862
Sangareddy
Opp. Inspection Bunglow,
Sangareddy 502001
Tel 08455-276263
Fax 08455-276603
Ashoknagar
Ramachandrapuram Mandal
Dist. Sangareddy 502032
Tel 040-20040773
Fax 040-23020238
Bhadrachalam
Temple Road, Bhadrachalam 507111
Dist. Kothagudum.
Tel 08743-231492
Fax 08743-231020
Regions in Andhra Pradesh
05
Geographical Area & Regional Offices
we are with you! Annual Report 2016-17
06
BOARD OF DIRECTORS
Shri V. Narasi ReddyChairman
(General Manager on deputation
from State Bank of India)
Nominees of Central Government under Section 9 (1) (a) of the Regional Rural Bank's Act, 1976
Nominee of Reserve Bank of India under Section 9 (1) (b) of the Regional Rural Bank's Act 1976
Shri M S Harishankar Asst. General Manager,
, Reserve Bank of India, HyderabadFIDD
Nominee of NABARD under section 9 (1) (c) of the Regional Rural Bank's Act, 1976.
Shri V.S. Gupta, Deputy. General Manager
NABARD, TSRO, Hyderabad
Nominees of State Bank of India under Section 9 (1) (d) of the Regional Rural Bank's Act, 1976
Shri T.V. ReddyDeputy General Manager (ABU) State Bank of India, LHO, Hyderabad
Shri K.V. Maruthi RaoRegional Manager, State Bank of India,
Regional Business Office, Warangal
Nominees of State Government under Section 9 (1) (e) of Regional Rural Bank's Act, 1976
Ms. K. Amrapali, IASCollector & Dist. Magistrate,
Warangal(urban)
we are with you! Annual Report 2016-17
Vacant
Smt K. Sunitha, IASSecretary, Finance, (Institutional Finance) Finance Department, GOAP, Amaravathi.
Vacant
07
Executive Team
V. Narasi ReddyChairman
Shri T.V. Krishna ReddyGeneral Manager ‐II
Shri M. SatyanarayanaGeneral Manager‐I
we are with you! Annual Report 2016-17
Shri S. Prakash KumarGeneral Manager ‐ III
Shri K. RavikiranGeneral Manager ‐ IV
Heads of Departments
Regional Managers
Sri V. Raghunath ReddyChief Manager, Credit
Sri TVV PrabhakarChief Manager, Accounts
Sri A S SarmaChief Manager, P&D
Sri K Vinod ReddyChief Manager Per & HR
Sri P. Murali Mohan RaoChief Manager V&DP
On Deputation from SBI
Sri P. Purnachandra RaoChief Manager, I &A
Sri S.L.N. PrasadChief Manager, RRM
Sri S. LAXMANChief Manager, Board
Sri G.S.N. ReddyChief Manager, FIC
Sri Abdul RasheedChief Manager, SLC
Sri D V Gurunath RaoRM, Sangareddy
Sri L Sudheer ReddyRM, Vizianagaram
Sri M.B T ReddyRM, Vishakapatnam
Sri Ch RamuluRM, Khammam
Sri SV Ramana MurthyRM, Nalgonda
Sri P. RajuRM, Mahabubnagar
Sri BRV Manoj KumarRM, Ashoknagar
Sri D.VishwaprasadRM, Warangal
Sri B Srinivasa MurthyRM, Srikakulam
Sri M Manohar ReddyRM, Bhadrachalam
Sri D Rama Rao RM, Parvathipuram
Sri G. Sreedhar ReddyChief Manager, IT
08
09
Our Mentors
Shri Hardayal PrasadChief General Manager,
State Bank of India, LHO, Hyderabad
Our Supervisors
Shri V.V.V. SatyanarayanaChief General Manager,
NABARD, RO, HyderabadAP
Dr.P.Radhakrishnan
Chief General Manager,
NABARD, TSRO, Hyderabad
Shri Giridhara KiniGeneral Manager (NW‐I),
State Bank of India, LHO, Hyderabad
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10
Total Business of the Bank has crossed Rs 25000 crore mark by reaching a level of Rs 25,187 crores with a growth of Rs 4383.23 cr @21.07%(Rs 3458.26 cr @ 19.94%)
Growth in Deposits Rs 2616.47 cr @ 25.65% (Rs 1922.11 Cr)
Growth in Advances Rs 1766.76 cr @16.67% (1536.15 cr)
Net profit Rs 351.99 cr @57.51% (Rs 223.47 Crore 10.84%)
Gross NPAs reduced from 2.38% to 1.69%
Net NPAs reduced from 1.40%. to 0.72%
The share of CASA has increased from 36.60 %( 31.03.2016) to 41.04% as on 31.03.2017
Cost of deposits declined from 7.62% (31.03.2016) to 6.89 % as on 31.03.2017.
Business per Branch Rs 32.80 cr (27.70 Cr)
Business per Employee Rs 8.36 cr (6.96 Cr)
Net Profit per Employee Rs 11.69 lakhs (7.48 Lakh)
Opened 17 New Branches taking total to 768 (inaugurated online by CGM, SBI, LHO, Hyd)
Miscellaneous/other Income went up by 22.12%
Agriculture Credit outstanding at Rs 4934.85 Crore (Rs.4278.79 Cr.) Disbursed Rs 4128.72 Crore (Rs.4052.60 Cr).
Agriculture borrowers increased to 842370 during the year from 786306.
Total No. of SHGs financed reached 189884 (184440) with outstanding credit of Rs 4955.71 Crore (3984.69 Cr) Disbursed Rs 3655.37 Crore (Rs.2773.82 Cr) to 126847 Groups.
Aadhar numbers have been seeded on to 35, 66,856 operative Accounts.(97%)
PMJDY – opened 2727624 Basic Savings Bank Deposit Accounts as on 31.3.2017, of which 793627 accounts were provided with RuPay Cards.
Mobile Banking‐ introduced with app in English and Telugu and Missed call facility to know the account balances
Rupay ATM Cards enabled for PoS transactions /e‐commerce and swiping at Micro ATMs at Bank Mitras.
ASSOCHAM‐ Secured two ASSOCHAM’s Social Banking Excellence Awards – winner in Best Agriculture banking category and runner in Best Social banking category.
NPCI Special Award in recognition and appreciation of highest number of transactions in National Financial Switch (NFS) ATM Network under the category of RRBs.
SKOCH‐ Skoch platinum award for best performance in Cross selling‐ Life insurance
48,36,690 transactions took place in bank mitra accounts as against 36,86,180 during previous year with an increase of 11,50,510 transactions.
Total amount involved in Bank Mitra transactions have gone up by 91% i.e., from previous FY’s Rs 298.08 Crore to Rs 569.78 Crore during the year.
Zero balance accounts have come down from 50% in previous FY to 13% during the year.
Stood first in cross selling in the country by mobilizing a New Business Premium (NBP) of Rs.18.54 crores and earned a commission of Rs 2.14 cr during the year
Highlights 2016-17
Note : (Figures in brackets pertain to previous FY)
we are with you! Annual Report 2016-17
Chairman’s Messagewe are with you! Annual Report 2016-17
11
It is with a sense of great pride that I present the performance of
the Bank for the FY 2016‐17. In spite of disruptive environment
in the Indian economy by way of unexpected demonetisation
announced on 8.11.2016, which severely impacted all Banks
and public alike, our Bank maintained its direction and made
efforts to sustain and to surpass all MoU growth levels during
the year.
Our relentless focus on basic attributes required for a Bank and
banker to be successful in the business of banking and our
responsiveness to the changes in IT and other areas, led to the
unprecedented business growth, profitability, improvement in
efficiency parameters. Rather than pondering over inherent
weaknesses, we re‐engineered the strengths present in the
system and demography of our Bank and achieved the more
than expected growth in all areas. Our quest for efficiency by
doing just the right thing, has paid off.
Record Growth
Registering a Business Growth of Rs 4383.23 Crore at 21.07%
and a Net Profit of Rs 351.99 Crore during 2016‐17 was a path‐
breaking achievement. No other RRB in the country has ever
achieved the business growth and Net Profit of this magnitude
during one year. Our Bank has joined the Rs 25000 Crore Club
RRBs by reaching Rs 25187.11 Crore. APGVB came into
existence on 31.3.2006 by amalgamation of five smaller RRBs.
The total business as on 31.3.2006 was Rs 4000 Crore
accumulated over a period of 30 years. The Business growth of
Rs 4383.23 Crore achieved this year alone was more than the
total business that the Bank had started with. Deposits have
grown by Rs 2616.46 Crore at 25.65% to reach Rs 12818.58 Crore
while Advances by Rs 1766.76 Crore at 16.66% to reach Rs
12368.53 Crore.
Net Profit
There is a growth of 57.51% over previous year’s Net Profit of Rs
223.47 Cr. The Net Profit of Rs 351.99 Crore registered for the
year 2016‐17, has not only been the highest for any RRB, it has
also outperformed many Private / Public Sector Banks.
We have focussed on all avenues leading to efficiency in our
performance, leading to profitability. The important factors
impacting the profit were; recovery from Written Off / AUCA
accounts to an extent of Rs 6.43 crore, profit from sale on
investments to a tune of Rs 50 Crore (Treasury Operations),
22.12% growth in Other income which increased to Rs 197.19 Cr
from Rs 161.47 Cr.
Strengthening treasury operations has been one of the priority
areas of the bank during the year which contributed to the
profitability significantly.
CASA
Increasing the CASA by bringing down the bulk and high interest
bearing deposit has been our priority. The Bank had been
saddled with bulk and high interest bearing term deposits
adversely impacting the cost of funds. We have consciously
discouraged bulk deposits and arrested the easy route of
achieving the deposits through big ticket deposits which usually
cost the Bank dear. During the year, CASA increased by
Rs.1527.73 Crore at a growth rate of 40.91% to reach
Rs.5261.50 crore as against Rs 3733.77 crore in previous
financial year. The share of CASA has increased from 36.60%
(31.03.2016) to 41.05% as on 31.03.2017. The growth rate of
CASA at 40.91% is much higher than total deposit growth rate of
25.65%.
Data Quality and reduction of NPAs
The data purification continues to occupy our priority. This year,
we adopted innovative approach in rectification of data gaps.
The individual accounts have been subjected to scrutiny at
various levels for data accuracy. This measure has significantly
V. Narasi ReddyChairman
we are with you! Annual Report 2016-17
12
We focussed more on reducing the Zero Balance Accounts
handled by Bank Mitras, increasing the number and volume of
transactions, aadhar seeding. Zero balance accounts as a share
of total Bank Mitra Accounts was reduced from 50% to 13%.
Transactions in Bank Mitra Accounts during the year have
grown by 31.21% over previous year.
Another important task taken up during the year is to de‐
duplicate the Bank Mitra Accounts. There are multiple
accounts for a single customer, opened for different purposes at
different points of time. We have made efforts to close the
accounts, retaining the account to which Aadhar was seeded.
This process has begun and would continue in the next FY. The
next move is that the Bank Mitras will take out the voters list and
enrol the villagers who do not have back accounts.
We have been placing paramount importance to strengthening
Alternate Delivery Channels. No. of transactions carried out
through Alternate Delivery Channels has increased by 71.69%
i.e., from 10303023 transactions to 17680940 transactions.
Our motto is to increase the usage of Alternate Delivery
Channels in the years to come to become more digital, which
has been the constant endeavour of our Sponsor Bank.
Our commitment to improve our efficiency and standards
brought us Awards from Social Banking Excellence Awards from
ASSSOCHAM, NPCI (Best Bank in Number of ATM Transsactions)
and SKOCH Consultancy Services (Platinum Award for Best
Performance in Cross Selling). We stand encouraged with these
Awards and will function in such way that we will be found
worthy of many more Awards in due course.
I take this opportunity to wholeheartedly thank all our
customers and stake holders for giving us opportunity to serve
them. I also place on record the commendable services
extended by all Staff members without which the Bank would
not have achieved this performance.
Yours sincerely,
(V. Narasi Reddy)
Chairman
improved the data quality to reflect correct asset classification.
Our Statutory Auditors have made a special mention that they
found the data quality to be of high order during their visits.
We have also equipped our operating staff with necessary skills
and empowerment in dealing with NPAs. Several workshops
were conducted to enlighten the staff about various recovery
methods available including OTS, Compromise and Lokadalat.
Legal recourses like Suit filing and SARFAESI were effectively
utilised to reduce the Bad loans. Special focus on AUCA also
yielded good results.
These efforts have reduced our Gross NPAs to Rs 209.74 Cr
(1.69%) from Rs 251.99 Cr (2.38%) and Net NPAs to Rs 87.57 Cr
(0.72%) from 147.67 Crore (1.40%).
Technology initiatives during the year:
The notion that the Technology is only for those who are urbane
and literate, is disappearing. The technology has become so
pervasive that the people from all walks of life are using
technology, particularly after demonetisation and avowed
efforts of Government of India for cashless transactions and
digitisation. Whether it is a vegetable vendor or Kirana shop
owner or a farmer, it is difficult to conceive a day without the
use of technology. It is time, RRBs operating in the bottom of
the pyramid of the financial system, start adopting the
technology in all possible ways. With Payment Banks, Small
Banks and FinTech Companies making deep inroads into the
rural areas, the options available for an RRB are either to adopt
technology and retain the customer base or lose to those new
players. Sufficient and timely infrastructure and support from
controllers and regulators are essential for RRBs to take on the
impending threat from these players.
Our Bank has implemented Mobile Banking, AEPS (On Us, Off
US and Issuer Off US), swiping of RuPay Card in Micro ATMs,
Missed Call facility etc., IT initiatives during the year. We have
conducted campaigns with cash back incentives to customers to
popularise these services. Mobile banking transactions started
picking up while RuPay Card transactions went up by 50.14 %
from 2747553 to 4125191.
Last Mile transactions
During the year, the position relating to Financial Inclusion and
operations of the Bank Mitras has been streamlined towards
sustaining the progress already achieved and increasing the
numbers. We have had an elaborate administrative structure to
oversee the operations of Bank Mitras. Transactions of each
Bank Mitra are monitored on daily basis at four levels, viz.,
Branch Manager of the respective Bank Mitra, FIC Nodal Officer
in Regional Office, Regional Manager and Chief Manager (FIC).
0
200
400
600
800
1000
1200
2007-08
2008-09
2009-102010-11
2011-12
2012-13
2014-15
2015-16
152221
311419
539
698
879
1080
ReservesReservesReserves (Rs in Crores)
2013-14
1400 1304
we are with you! Annual Report 2016-17
Deposits Advances Business
(Rs in Crores)
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-140
5000
2188
1813
4001
2718
2095
4813
2934
2701
5635
3394
3304
6698
3805 38
7076
75
4795
4894
9689
5133 55
3310
686
5869 65
9012
459
6791 78
9514
687
2014-15
8280 90
6617
346
Business Business Business
2015-16
1020
210
602
2080
4
10000
15000
20000
25000
30000
35000
2016-17
1281
912
369
2518
7
1656
2016-17
1600
1800ProfitProfitProfit
0
50
100
150
200
250
300
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2015-16
37
69
103 108 120
159180
223
(Rs in Crores)
2013-14
2014-15
2005-06
202
1237
352
2016-17
350
400
0
500
1000
1500
2000
2500
3000
2011-12
997
Business GrowthBusiness GrowthBusiness Growth (Rs in Crores)
3500
4000
4500
1773
2228
2659
3458
4383
2012-13
2013-14
2014-15
2015-16
2016-17
13
Per Emp ProfitPer Emp ProfitPer Emp Profit
0.52
1.67
3.21
4.684.83
5.08
6.48 6.577.09
0
2.00
4.00
6.00
8.00
10.00
12.00
14.00
1.01
7.57
11.69
(Rs in Lakhs)
0
5
10
15
20
25
30
Per Branch ProfitPer Branch ProfitPer Branch Profit
4.772.44
7.65
13.14
19.14 19.5320.91
24.9225.64
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-140.00
5.00
10.00
15.00
20.00
25.00
Per Branch BusinessPer Branch BusinessPer Branch Business
8.28 9.9611.67 12.7
14.26
17.52 18.6
19.5320.86
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140
500
1000
1500
2000
25002277 2262 2215 2160 2202 2236 2354 2477
27433000
No. of StaffNo. of StaffNo. of Staff
2843
2014-15
30.00
35.00
2014
-15
23.82
27.69
3500
2015-16
2951
2015
-16
27.7
35
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
29.75
(Rs in Crores)
2005
-06
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2013
-14
1.76
2.132.54
3.10
3.49
4.334.54
5.025.34
Per Emp BusinessPer Emp BusinessPer Emp Business
7.006.10
2014
-15
8.00
9.00
2015
-16
2016
-17
2012
-13
7.05
(Rs in Crores)
(Rs in Lakhs)
we are with you! Annual Report 2016-17
2016-17
3012
2016
-17
32.808.36
40
45
50
2016
-17
45.83
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
14
AWARDSwe are with you! Annual Report 2016-17
15
Assocham's Social Banking Excellence Awards:Our Bank is the Winner in Best Agricultural Banking category and Runner up in Best Social Banking category. This is the consecutive second time we are the winners.
Our Chairman Shri V. Narasi Reddy, receiving the Award from Assocham
Skoch Order of Merit Award for Banking and Finance Leadership 2017. Our Chairman Shri V. Narasi Reddy receiving the Award from Mr Sameer Kochar, Chairman, Skoch Group
we are with you! Annual Report 2016-17
16
SKOCH Group has conferred Skoch Platinum Award on our Bank for CROSS SELLING ‐ Life Insurance . This award is the highest independent honour in INDIA. Shri K. Ravi Kiran, Our General Manager receiving the Award.
National Payments Excellence Award presented by NPCI for highest ATM transactions – This is also the consecutive second time our Bank has got the Award. Shri G. Sreedhar Reddy, Chief Manager (IT) and G.J. Anthony, Senior Manager (IT) receiving the Award from NPCI.
Indicators 2014-15 2015-16 2016-17
A KEY PERFORMANCE INDICATORS
1 No. of Districts covered 8 8 22
2 No. of branches 728 751 768
a) Rural 520 531 494
b) Semi urban 149 156 181
c) Urban 49 49 52
d) Metropolitan 10 15 41
Ultra‐Small Branches 493 488 488
3 Total Staff (excluding Sponsor Bank Staff) 2843 2951 3012
of which, Officers 1660 1765 1821
4 Deposits 82800015 102021153 128185762
Growth % 21.92 23.21 25.65
5 Borrowings outstanding 32079962 37337981 56208413
6 Gross Loans & Advances outstanding 90656121 106017675 123685318
Growth % 14.82 16.94 16.67
of 6 above, loans to Priority Sector 77385394 91912049 110580800
of 6 above, loans to Non Target Groups 13270727 15767667 13104500
of 6 above, loans to SC/ST 16250932 19308609 25973900
of 6 above, loans to SF/MF/AL 27782661 56544544 67230826
of 6 above, loans to Minorities 4643178 5516810 5187400
7 CD Ratio 109.49 103.92 96.49
8 Investments Outstanding 48483582 51960779 84864493
SLR Investments Outstanding 17956129 22886427 43432477
Non‐SLR Investment Outstanding 30527453 29074352 41432016
B AVERAGE
9 Average Deposits 73893516 91112765 115515029
Growth % 22.74 23.30 26.78
10 Average Borrowings 26247121 41665867 45458048
Growth % ‐8.75 58.74 9.10
11 Average Gross Loans And Advances 80183390 94881573 110060777
Growth % 13.48 18.33 16.00
12 Average Investments 32715306 49375579 58850454
Growth % 18.10 50.93 19.19
Average SLR investments 16897617 22503871 30843910
as % to average deposits 22.87 24.70 26.70
Average Non‐SLR Investments 15817689 26871708 28006544
as % to Average deposits 21.41 29.49 24.24
13 Average working funds 123134237 158988248 192895148
C LOANS ISSUED DURING THE YEAR
14 Loans issued during the year 62838416 78679981 99600988
Growth % 21.17 25.21 26.59
KEY PERFORMANCE INDICATORS Rs. in 000's
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17
Indicators 2014-15 2015-16 2016-17
Rs. in 000's
we are with you! Annual Report 2016-17
of 14 above, loans to Priority Sector 51332447 71366527 83310200
of 14 above, loans to Non‐target Groups 16643403 23077341 16290788
of 14 above, SC/ST 14274928 1926191 16076269
D PRODUCTIVITY
15 Per Branch 238264 277016 327957
Per Staff 61012 70498 83623
E RECOVERY PERFORMANCE
16 TOTAL
Demand 61206745 77776039 102622694
Recovery 47524012 64303445 87597449
Over dues 13682733 13472594 15025245
Recovery % 77.65 82.68 85.36
(June position)
17 FARM SECTOR
Demand 20130889 37592669 40200604
Recovery 9261699 30211300 37943901
Over dues 10869190 7381369 2256703
Recovery % 46.01 80.36 94.39
(June position)
18 NON‐FARM SECTOR
Demand 41075856 40183370 62422090
Recovery 38262313 34092144 49653548
Over dues 2813543 6091226 12768542
Recovery % 93.15 84.84 79.54
(June position)
F ASSETS CLASSIFICATION
19 (a) Standard 87665819 103497691 121587921
(b) Sub‐Standard 1650916 776023 366930
(c) Doubtful 1332516 1736300 1716141
(d) Loss 6870 7661 14326
Total 90656121 106017675 123685318
20. Std.Assets as % to Gross Loans & Advances out standings 96.70 97.62 98.31
G PROFITABILITY ANALYSIS
21 Interest paid on
a) Deposits 5787730 6946094 7963182
b) Borrowings 2035532 2739088 3126205
22 Salary 1514481 2357204 2013540
23 Other Operating Expenses 718632 1010451 961124
24 Provisions made during the year
(a) Against NPA's 62810 303445 244916
(b) Other Provisions 385028 ‐306919 44690
(c) Amortization ‐ ‐ ‐
18
Rs. in 000's
Indicators 2014-15 2015-16 2016-17
we are with you! Annual Report 2016-17
25 Interest received on
(a) Loans & Advances 9939772 11047289 13099251
(b) Investments 2498841 3799661 4488826
(c) Others Nil Nil 20649
26 Other Income 1000939 1614741 1971914
27 Loss / Profit 2016072 2234707 3519912
H Other information
28 Share Capital Deposit Received 890850 Nil Nil
29 DI & CGC Nil Nil Nil
(a) Claims settled cumulative ‐ ‐ ‐
(b) Claims received but pending adjustment ‐ ‐ ‐
(c) Claims pending with Corporation ‐ ‐ ‐
30 Cumulative Provision ‐
(a) Against NPAs 750217 1043312 1221643
(b) Against Standard Assets 248155 292611 342625
(c) Against Intangible Assets Frauds etc. 472563 121188 115864
31 Interest Derecognized
(a) During the year Nil Nil Nil
(b) Cumulative Nil Nil Nil
32 Loans Written off during the year
(a) No. of Accounts 137 35 3795
(b) Amount 2277.82 2600 59029
33 Accumulated loss Nil Nil Nil
34 Reserves 10802618 13037325 16557237
Net NPAs 2224258 1476672 875754
% Provisions to gross NPAs 25.08 41.40 58.25
% Gross NPAs to advances 3.30 2.38 1.69
% Net NPAs advances 2.48 1.41 0.72
CRAR 13.45 13.48 14.05
19
Commerical Loan for Hospital
Building Construction Rs. 2.00
Crores financed by our
Pothireddy Pally X Road Branch
(Sangareddy)
Housing Loans for purchase of
flats financed by our Branches
under RASMECCC,
Vishakapatnam
we are with you! Annual Report 2016-17
20
Walkathon was taken up by our staff as part of Mega sports meet, to create awareness on digital banking, cashless transactions and financial literacy.
Board of Directors Report
2016-17
Teaming Up
we are with you! Annual Report 2016-17we are with you! Annual Report 2016-17
0101010101010121
We�are�with�you
BOARD OF DIRECTOR'S REPORT 2016-17
Profit Analysis
The Bank registered a Net Profit of Rs 351.99 Crore for the year
2016‐17 as against Rs 223.47 Crore for the previous FY 2015‐
16 at a growth rate of 57.51% which is highest ever so far.
Increase in interest income by Rs.276.18 cr (which includes
increase in interest on investment by Rs.68.92 cr), recovery of
AUCA to the extent of Rs 6.44 Crore, increase in miscellaneous
income by Rs 16 Crore, profit from sale of investments to the
tune of Rs 49.60 Crore and reduction in NPAs by Rs 42.26
Crore, thus requiring less additional provisions have impacted
the net profitability of the Bank.
The Operating profit of the Bank stood at Rs 522.70 Crore as
on 31.3.17 vis‐à‐vis previous FY's figure of Rs 341.23 Crore.
The increase of Rs 181.47 Crore in operating profit during this
year is impressive when compared with the increase of Rs
47.70 Crore during 2015‐16. This is due to increase in income
in all areas i.e., interest on advances, investments, decrease in
operating expenditure and decrease in cost of deposits from
7.62% to 6.89% during the year.
Income and Expenditure (Rs in Crores)
ProfitProfitProfit
0
50
100
150
200
250
300
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2016-17
37
69
103 108 120
159 180
223
352 (Rs in Crores)
thWe have pleasure in presenting the 12 Annual Report of
Andhra Pradesh Grameena Vikas Bank (APGVB) together with
the Audited Statement of Accounts, Auditors' Report and the
report on business and operations of the Bank for the financial styear ended on 31 March 2017.
Business Review
The Bank's business has registered a growth of Rs 4383.23 stCrore at 21.07% to reach Rs 25187.11 Crore as on 31 March
2017 as against Rs 20803.88 Crore as on 31.3.16. This growth
in business over March 2016 level is impressive vis‐à‐vis the
growth of Rs 3458.26 Cr in 2015‐16.
60% of the business growth of Rs 4383.23 Crore was
contributed by Deposits and the remaining 40% by loans and
advances with an absolute growth of Rs 2616.47 Cr and Rs
1766.76 Cr respectively. The distribution of growth between
deposits and advances in FY 2015‐16 was in the ratio of 56%
and 44%.
2013-14
2014-15
202
we are with you! Annual Report 2016-17
TOTAL BUSINESSTOTAL BUSINESSTOTAL BUSINESS
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140
(Rs in Crores)
2014-15
5000
10000
15000
20000
25000
30000
2015-16
2016-17
5635
6698 7675 96
89 1068
6
1245
9
2080
4
1468
7 1734
6
2518
7
350
400
Particulars 2014‐15 2015‐16 2016‐17 Growth %
Interest Income 1243.86 1484.70 1760.87 18.60
Interest Expenditure 782.33 968.52 1108.94 14.50
Non‐Interest Income 100.09 161.47 197.19 22.12
Non‐Interest Expenditure 223.31 336.76 297.46 ‐11.67
Gross Profit/Operating profit 338.32 340.89 551.66 61.83
Taxes 90.00 107.62 169.06 57.09
Deferred Tax Asset & Earlier year adjustments (excess) 1.93 10.14 1.65 ‐83.73
Provisions and Contingencies 44.78 ‐0.35 28.96 ‐
Prior Perioddepreciation & rent 0 0 0 0
Net Profit 201.61 223.47 351.99 57.51
22
2015-16
Net Interest Income
Total interest income earned during the year is Rs 1760.87 crores where as total interest expenditure is at Rs 1108.94 crores. The net interest income has increased to Rs 651.93 crore during the year vis‐à‐vis Rs 516.18 crores in 2015‐16 with a growth rate of 26.30%. Growth in interest income by Rs.276.18 cr and growth in CASA this year from 36.60% to 41.04% has impacted the rise in Net Interest Income during the year.
Interest Expenditure
Interest paid on deposits has increased to Rs 796.32 Crore from the last FY's figure of Rs 694.61 Crore by Rs 101.71 Crore (14.64%). The increase in interest paid on deposits was subdued vis‐à‐vis deposits growth of 25.65%, due to increase in CASA from 36.60% to 41.04% during the year.
The Bank has paid Rs 312.62 Crore towards interest on borrowings (refinance from NABARD, SBI and NHB) during the year as against Rs 273.91 Crore of FY 2015‐16 with an increase of Rs 38.71 Crore.
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140.00
500
1000
1500
2000
447.
1726
2.18
577.
3932
6.00
642.
9835
7.29
785.
6051
2.74
590.
4096
5.32
1102
.62
703.
52
Interest Income
Interest Expenditure
1243
.86
782.
32
2014-15
Operating expenditure
Operating expenditure has declined by Rs 39.30 Crore
(at ‐11.67%) from Rs 336.77 Crore in 2015‐16 to Rs
297.47 Crore in current fiscal.(in previous year, arrears
of staff wages on account of wage revision were
included)
The other operating expenses (other than staff cost)
reduced by Rs.9.79 Crores over previous year 2015‐16
from Rs.107.59 crores to Rs.97.80 Crores.
Interest Income
Interest income increased from Rs 1484.69 Crore to Rs
1760.87 Crore during the FY with an absolute growth of
Rs 276.18 Crore (at 18.60%)
The Bank has earned an interest income of Rs 1309.93
Crore from loans and advances in current fiscal as
against Rs 1104.73 Crore in 2015‐16 with an increase of
Rs 205.20 Crore (@ 18.57%).
The interest income received from investments has
increased by Rs 68.91 Crore at 18.14% to reach Rs
448.88 Crore as against Rs 379.97 Crore in the previous
FY. Cash payout of Rs 1320.00 Crore by State Bank of
India on account of participation in IBPC, which was
invested in STDR with them (SBI) has yielded good
interest income.
2015-16
1760
.87
1108
.94
(Rs in Crores)
Interest paid on Borrowings
Interest paid on Depostits
0.00
100.00
200.00
300.00
400.00
500.00
600.00
169.
9492
.24
212.
6311
3.37
227.
4712
9.82 32
6.93
185.
82
200.
0839
0.32 46
3.34
240.
18
700.00
578.
77
203.
55
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2016-17
800.00
694.
6127
3.91
(Rs in Crores)
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1484
.70
968.
52
2016-17
900.00
796.
3231
2.62
2015-16
(Rs in Crores)Interest Income on Advances
Interest Income on Investments
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140.00
200.00
400.00
600.00
800.00
1000.00
1200.00
319.
7112
7.46
428.
3314
9.06
515.
7612
7.23
599.
4918
6.12 20
2.83
762.
40 865.
9223
8.83
1309
.93
448.
89
2015-16
2014-15
993.
9824
9.89
1400.00
1600.00
1104
.73
379.
97
2016-17
23
Provision for NPAs:
The Bank has made a provision of Rs 24.49 Cr on NPAs during the year, taking the total Provisions available on
Advances to Rs 156.43 Cr (including cumulative provision of Rs 34.26 Cr on Standard Assets).
(Rs in Crore)
Ratio Analysis
S.No. Ratios 2013‐14 2014‐15 2015‐16 2016‐17
Amt / Ratio % Change
1 Yield on advances 12.25 12.40 11.64 11.90 2.23
2 Yield on investments 8.58 7.73 8.29 8.47 2.17
3 Cost of deposits 7.70 7.83 7.62 6.89 ‐9.58
4 Cost of borrowings 8.35 7.76 6.57 6.88 4.72
5 Avg. cost of funds 6.45 6.35 6.09 5.75 ‐5.58
6 Avg. return of funds 10.13 10.13 10.35 10.15 ‐1.93
7 Cost of management 2.14 1.81 2.12 1.54 ‐27.36
8 Misc .Income as % to Working Funds 0.68 0.79 0.83 0.77 ‐7.23
9 Net Margin 2.36 2.14 2.98 2.99 0.34
10 Financial Margin 3.76 3.78 4.26 4.40 3.29
11 Risk Cost 0.68 0.62 0.67 0.64 ‐4.48
12 Return on Assets 10.9 1.64 1.41 1.82 29.08
13 Gross Rate of return 1.38 1.31 1.20 1.56 30.00
14 Expenses ratio 46.79 39.76 49.70 35.03 ‐29.52
15 Gross NPAs 343.28 299.03 252.00 209.74 ‐ 16.77
16 Net NPAs 228.56 224.25 147.67 87.58 ‐ 40.69
17 % Provisions to gross NPAs 26.81 25.08 41.40 58.27 40.74
18 % Gross NPAs to advances 4.35 3.30 2.38 1.69 ‐29.00
19 % Net NPAs to advances 2.94 2.47 1.40 0.72 ‐48.57
20 CRAR 13.26 13.45 13.48 14.05 4.23
Balance Sheet Size
The balance sheet size amounted to Rs.21047.15 crores
(including IBPC gap of Rs 1320.00 Crore) with an increase of
Rs.4873.81 Crores over March 2016 level.
Capital & Reserves
Authorized Capital:
Pursuant to The Regional Rural Banks (Amendment Act)
2015,Raised the Authorized Capital of the Bank from 5,00,000
Equity Shares of Rs. 100/‐ each aggregating to Rs. 5 Crores to
200,00,00,000 Equity Shares of Rs. 10/‐ each aggregating to
Rs. 2000 Crores
Paid up Capital:
The Bank's paid up capital stood at Rs 94,08,50,000
(9,40,85,000 shares of Rs 10 each), subscribed by
Government of India, State Government and State Bank of
India in the ratio of 50:15:35. The Reserves increased by Rs
351.99 Crore at 27% from Rs 1303.73 Cr as on 31.03.16 to Rs
1655.72 Cr as on 31.03.17.
we are with you! Annual Report 2016-17
Assets 2013‐14 2014‐15 2015‐16 2016‐17
O/s Provisions O/s Provisions O/s Provisions O/s Provisions
Standard 7545.60 21.68 8766.58 24.82 10349.77 29.26 12158.79 34.26
Sub Standard 159.53 15.11 165.09 17.36 77.60 12.00 36.69 5.94
Bad & Doubtful 189.24 55.25 133.25 56.98 173.63 91.56 171.61 114.79
Loss 1.05 0.99 0.68 0.68 0.76 0.76 1.43 1.43
Total 7895.42 93.03 9065.60 99.84 10601.77 133.59 12368.53 156.43
24
3. a. Adjusted value of funded risk assets i.e., balance sheet items 9256.00 10663.00 12754.79
b. Adjusted value of non‐ funded risk assets i.e., balance sheet items 0 0 21.98
c. a+b 9256.00 10663.00 12776.77
d. Percentage of Capital (Tier‐I + Tier II) to Risk Weighted Assets 13.45 13.48 14.05
2 Tier‐II a. Undisclosed Reserves b. Revaluation Reserves c. General Provisions & Reserves 70.49 39.94 45.85 d. Investment fluctuations Reserves / Fund Total Tier‐II Capital 70.49 39.94 45.85 Grand Total (Tier I + Tier II) 1244.84 1437.75 1795.65
Net worth
Net worth of the Bank stood at Rs. 1749.81 Crore with a
growth of Rs 351.99 Crore (25.18%) over previous FY's figure
of Rs 1397.82 Crore.
The Capital Adequacy Ratio has further strengthened to reach
14.05% at the end of the year vis‐à‐vis 13.48% as on 31.03.16
well above the level of minimum 9% stipulated by Dr. K.C
Chakravarthi Committee.
The following table gives the position of Tier‐I, Tier‐II
Capital, Reserves and computation of CAR.(Rs in Crore)
Deposits
Deposits registered an impressive growth of Rs 2616.47 Crore
over March 2016 level at a growth rate of 25.65%. This
growth is the highest in the history of the Bank. Total deposits
as on 31.3.2017 stands at Rs 12818.58 Crore as against Rs
10202.11 Crore as on 31.3.2016.
Deposits growth in 2016‐17
There has been a consistent growth on month to month basis
except a marginal fall in April 2016 and January'2017.
(Rs. In Cr.)Month wise Total Deposits During 2016-17
0
2000
6000
4000
8000
April
10000
12000
(Rs. In Crores)DepositsDepositsDeposits
0
2000
6000
4000
8000
2934 3394 38054795
51535869
6791
10202.11
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
8280.0010000
1200010
171.
69
we are with you! Annual Report 2016-17
0
200
400
600
800
1000
1200
2007-08
2008-09
2009-102010-11
2011-12
2012-13
2014-15
2016-17
152221
311419
539
698
879
1080
ReservesReservesReserves (Rs in Crores)
2013-14
1400 1304
1656
1600
1800
2015-16
14000 12818.58
2016-17
14000
May June
July
Augus
tSep
tembe
rOcto
ber
Novem
ber
Decem
ber
Janu
ary
Febr
uary
March
1041
1.98
1074
5.02
1088
9.42
1106
9.71
1117
7.83
1262
9.09
1271
0.59
1268
5.20
1268
7.30
1281
8.38
1062
1.99
Deposit Mix
CASA deposits grew by Rs 1527.75 Crore at 40.91% to
reach Rs 5261.51 as against Rs 3733.77 Cr. Term
Capital� 2014-15� 2015-16� 2016-171 Tier‐I
a. Paid up Capital 5 94.08 94.08
b. Share Capital Deposit 89.08 0 0
c. Statutory Reserves & Surplus 217.39 262.08 332.48
d. Capital Reserves 0.01 0.01 0.01
e. Other Reserves 14.31 14.31 14.31
f. Spl.Reserve u/s 36(1)(Viii) of income Tax act 1961 0 0 3.85
g. Surplus in P&L 848.55 1027.33 1305.07
Total reserves (b+c+d+e+ f+g) 1080.26 1303.73 1655.72
Total Tier‐I Capital 1174.35 1397.81 1749.80
25
Deposit mix 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17
Current A/c 123.56 122.96 55.41 52.44 59.34 126.87
Growth ‐55.82 ‐0.6 ‐67.55 ‐2.97 6.90 67.53
Growth %age ‐31.12 ‐0.49 ‐54.94 ‐5.36 13.16 113.80
Savings Bank A/c 1839.50 2154.50 2398.34 2924.33 3674.42 5134.63
Growth ‐372.7 315.02 243.84 525.99 750.09 1460.20
Growth %age ‐16.85 17.13 11.32 21.93 25.65 39.74
Total CASA 1963.10 2277.5 2453.75 2976.77 3733.76 5261.51
Growth ‐428.52 314.40 176.25 523.02 756.99 1527.72
Growth %age ‐17.92 16.01 7.74 21.32 25.43 40.91
Term Deposits 3183.60 3591.70 4337.43 5303.23 6468.35 7557.07
Growth 780.47 408.09 745.73 965.8 1165.12 1088.73
Growth %age 32.48 12.82 20.76 22.27 21.97 16.83
Total deposits 5146.70 5869.20 6791.18 8280.01 10202.11 12818.58
Growth 351.96 722.47 921.99 1488.82 1922.10 2616.47
Growth %age 7.34 14.04 15.71 21.92 23.21 25.65
(Rs. in Crores)The share of CASA has increased from 36.6% (31.03.2016) to 41.04% as on 31.03.2017
we are with you! Annual Report 2016-17
Deposits grew by Rs 1088.73 Crore to reach a level of Rs 7557.07 Crore at 16.83% as against Rs 6468.34 Crore. The
growth of 40.91% in CASA during the year 2016‐17 has been stupendous when compared with CASA growth rates of
7.74% in 2013‐14 and 16.01% in 2012‐13, 21.32% in 2014‐15 and 25.43% in 2015‐16.
NRE/NRO Accounts‐Introduction
We have during the year introduced NRI Banking services to enable our customers to receive funds from foreign countries. This facility has been started in collaboration with our sponsor bank, SBI which is providing the intermediary services for conversion of foreign currency in to Indian Rupees and vice‐versa. Bank has received authorization to open and maintain NRE/NRO accounts in rupees from Reserve Bank of India vide letter No.HY.FE.SD‐I/1369/11.10.022/2016‐17 dated 13.01.2017 and the facility was formally launched by Chief General Manager, SBI,LHO, Hyderabad on 30.03.2017.
Borrowings
The aggregate borrowings of the Bank as on 31st March 2017 stood at Rs. 5620.84 Crore whereas it was Rs. 3733.80 Crore as on 31st
march 2016.
Institution � 2016‐17 � 2015‐16� Variance�
1 NABARD 1036.18
2 SBI 890.00
3 NHB ‐39.14
2648.53
1004.61
80.66
3733.80 1887.04
S.No
3684.71
1894.61
41.52
5620.84
The Bank has availed refinance against Crop loan disbursements from NABARD @ 20%. Refinance against SHG disbursements and
Rural Housing was provided by NABARD and NHB respectively @ 100%. The borrowings from SBI pertaining to overdrafts availed
against our TDRs .
26
(Rs. in Crores)
Investments 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17
SLR 1104.97 1339.44 1663.34 1795.61 2288.64 4343.25
Growth 105.28 234.47 323.90 132.27 493.03 2054.61
Growth %age 10.53 21.22 24.18 7.95 27.46 89.77
Non SLR 1272.01 1778.29 996.56 3052.74 2907.44 4143.20
Growth 124.43 506.28 ‐781.73 2056.18 ‐145.3 1235.76
Growth %age 10.84 39.80 ‐43.96 206.33 ‐4.76 42.50
Total Investments 2376.98 3117.73 2659.90 4848.35 5196.08 8486.45
Growth 229.70 740.75 ‐457.83 2188.45 347.73 3290.37
Growth %age 10.70 31.16 ‐14.68 82.28 7.17 63.32
Assets
Investments
Total investments portfolio– both SLR and Non‐SLR ‐ of the Bank has increased to Rs 8486.45 Crore as on 31.3.17 from previous
year's level of Rs 5196.08 Crore by Rs 3290.37Crore @63.32%. (Rs in Crores)
Investment Policy
The Bank has an Investment Policy in conformity with the
instructions received from RBI/NABARD/Sponsor Bank,
approved by the Board, in terms of which investments are
made.
The Investment Committee comprising of the following 8
members take investment decisions and the quorum is five.
1. Chairman
2. General Manager ‐ I
3. General Manager ‐ II
4. General Manager – III
5. General Manager – IV
6. Chief Manager (Accts)
7. Chief Manager (Planning & Devp)
8. Chief Manager (Credit)
The Investment Committee meets periodically to review the
funds position and decide the deployment of funds in SLR and
Non‐SLR avenues.
SLR Investments
In terms of Section 24 of the BR Act 1949, the Bank has
maintained investments in the avenues laid down in the Policy,
to fulfill the SLR requirements. All SLR investments are made
in GOI/State Govt Securities only. The purchase and sale of
Govt Securities are undertaken by the Portfolio Management
Services Department of State Bank of India.
Non SLR Investments
Non‐SLR investments are invested in TDRs of Banks. The Bank
has been monitoring and following up for prompt receipt of
interest due from Govt Securities /Bonds. There was no
instance of income leakage from Non‐SLR investments
portfolio.
CRR and SLR
The Bank has complied with the regulatory requirement of
maintenance of adequate balances towards CRR and SLR.
There is a well laid down system of assessing the CRR and SLR
requirements taking into account the NDTL. There was no
default in maintenance of adequate balances during the year.
The Bank has kept Rs 545.48 crore in CRR and Rs 4552.39
crores in SLR as on 31.03.2017.
Cash Management Product (CMP):
CMP was introduced with SBI/SBH covering 165
Branches/Regional Offices. Under the scheme, amounts will
be transferred every day morning and at the end of the day
the available balances will be transferred to our OD accounts
at SBI/SBH, Hanamkonda.
Centralization of TDS
During the year, we have centralized the payment of TDS at
we are with you! Annual Report 2016-17
* IBPC – an amount of Rs 1320 Crore received from State Bank of India, on account of gap in IBPC, is kept as TDR in Banks which has to be returned on the expiry date of IBPC i.e., 12.08.2017.
27
we are with you! Annual Report 2016-17
Regional Offices level on 11 TANs instead of making payment
through branch wise TANs. This has not only reduced the cost
of operations but also ensured proper and timely tax
compliance .
Credit Portfolio
The credit portfolio of the Bank rose by 16.67 % to Rs 12368.53
Crore during the financial year ended 31.03.2017 from the
previous year level of Rs 10601.76 Crore, thus showing an
absolute growth of Rs. 1766.77 Crore as against the target of
Rs 1060.18 Crore
Credit to Agriculture
Total credit to agriculture and allied activities including
agriculture‐portion of SHG lending, stood at Rs 8403.85 Crore
as on 31.3.2017 as against Rs 7068.19 Crore with a growth of
Rs 1335.66 Crore (@ 18.89 %). Total number of Bank's
borrowers in Agriculture sector has increased to 975289 vis‐a‐
vis 915414 in FY 2015‐16, with an increase of 59875. More
than 90 % of the credit to SHG finance is also towards
agricultural operations.
The Bank has disbursed Rs. 6687.77 Crore to agriculture
during the year as against the previous year's disbursal of Rs
5716.29 Crore. Total credit to agriculture and allied activities
constitutes 67.95 % of the total credit portfolio as on
31.3.2017 vis‐à‐vis 66.67 % as at the end of previous FY.
Crop loans under revised Kisan Credit Card System
As per the directions of Government of India and NABARD, we
have implemented revised Kisan Credit Card System for crop
loan borrowers from Kharif 2012. According to the guidelines
of revised KCC, we have introduced a new product KCC‐cum‐
SB account in the CBS for a period of 5 years. As per this
system, the farmers can remit their surplus funds in their KCC
account and can draw according to their requirement and they
need not maintain separate Savings Bank account. There is a
provision for giving interest as applicable for Savings Bank
account for the credit balances in the KCC account. Further,
loan limits will be fixed for 5 years and documents will be
obtained for the terminal limit. Year‐wise limits will be fixed
basing on present Scales of Finance and keeping in view the
future cost of investment.
We have issued 808713 KCCs as on 31.3.2017 with an
outstanding credit of Rs 4727.55 Crore as against previous FY
level of 765573 KCCs for Rs 4141.60 crores.
During the year 2016‐17, we have disbursed an amount of Rs
3990.71 Crore to 704471 KCC card holders as against Rs
3888.24 Crores to 650989 card holders during the year 2015‐
16. Instructions were issued to all the branches to cover all
KCC holders up to the age of 70 under Personal Accident
Insurance Scheme(PAIS) during the three year card holding
period, with risk coverage of Rs.50,000/‐ The annual premium
of Rs.20/‐ was jointly borne by the Bank Rs.13/‐ and the
borrower Rs.7/‐
Crop Loans ‐ Vaddileni Runalu / Pavala Vaddi
Government of unified Andhra Pradesh had implemented
“Vaddileni Runalu/ Pavala vaddi” scheme i.e.,
reimbursement of interest subvention and incentive
subvention for prompt payers of crop loan borrowers from
Rabi 2011‐12. Under the VLR Scheme, farmers need not pay
the interest portion. The scheme has been in existence and
continued by both the states of Telangana and A.P. We have
submitted our claim of Rs 32,87,13,339/‐ and Rs
11,05,16,465/‐ to the State Governments of Telangana and
Andhra Pradesh respectively during the year 2016‐17.
Interest Subvention
As per Government of India guidelines, Bank is implementing
7% interest rate to all the crop loan borrowers up to Rs.3.00
lakhs and accordingly claimed an amount of Rs
54,04,84,607/‐ towards 2% interest subvention from the GOI
during the year 2016‐17. As per the directives of Government
of India, we had passed on the benefit relating to interest
subvention incentive to the extent of Rs 34,60,61,924 /‐ to the
prompt repayers and claim submitted accordingly
Crop Loan Waiver Scheme in Telangana State
Our Bank has implemented Crop Loan Waiver Scheme
announced by the Government of Telangana. Under the
Scheme, all crop loans and crop loans against gold ornaments
outstanding as on 31.3.2014 have been covered to the extent
of Rs 1 Lakh (including interest upto 31.8.14) per farmer. In
case the borrower took loan from multiple bank branches, the
outstanding loan amounts are clubbed for the purpose of
waiver.
Accordingly, we have submitted the data of all eligible loans
amounting to Rs 2401.42 Crores and Government of
Telangana released fourth phase of 25% of the total eligible
amount for credit to respective accounts.
28
we are with you! Annual Report 2016-17
Crop Loan Waiver Scheme in Andhra Pradesh State
Our Bank has implemented Crop Loan Waiver Scheme
announced by the Government of Andhra Pradesh. Under the
Scheme, all crop loans, crop loans against gold ornaments and
the crop loans converted to MTL, which were outstanding as
on 31.12.2013 including interest are eligible for waiver. The
maximum ceiling for waiver of the loans was Rs 1.50 Lakhs.
Entire family is taken as a unit and loans taken from multiple
Bank branches are clubbed for arriving at the maximum
waiver.
Accordingly, we have received an amount of Rs. 352.27 crores,
out of which 352.08 crores was utilized and credited to
respective loan accounts. We have refunded an amount of Rs.
0.19 crores as ineligible amount.
Conducting of Grama Sabhas
All branches have conducted Grama Sabhas for the customers,
mainly for the purpose of educating the farmers in renewing
the crop loans to avail the benefit of Debt Waiver Schemes
announced by the State Governments. To ensure maximum
coverage of farmers, Grama Sabhas were conducted in the
evenings and mornings and sensitized farmers to renew their
crop loans to be eligible for Debt waiver benefits. Apart from
operating staff at Branches, functionaries from ROs, Head
Office right from Messenger to Chairman have participated in
the Grama Sabhas, which yielded very good results in
successfully implementing the Debt Waiver programmes
Tenant Farmers – Loan Eligibility Card Holders
We have financed 6679 tenant farmers under the Loan
Eligibility Cards Scheme with a credit outstanding of Rs 13.35
Crore during the year 2016‐17. AP Land Licensed Cultivators
Ordinance aims at ensuring loan and other benefits to tenant
farmers, by means of Loan Eligibility Cards.
Joint Liability Groups (JLGs)
JLGs are expected to overcome the problem of tenant farmers
getting deprived of institutional credit. The Bank has financed
an amount of Rs 91.83 Crores to the JLGs as on 31.03.2017.
During the year 2301 groups were financed amounting Rs.
41.03 crores.
NABARD has sanctioned a grant assistance of Rs 123.40 lakhs
for formation and linkage of 6170 JLGs during the year in both
states.
Self Help Groups
Our Bank has financed 189884 Self Help Groups (Covering
about 26.50 Lakh rural women) with an outstanding portfolio
of Rs 4955.71 Crore as on 31.3.2017 as against previous year's
level of 184440 Groups with outstanding credit of Rs 3984.69
Cr. The total loans outstanding under SHG segment has
increased by Rs 971.02 Crore at a growth rate of 24.37%
during the year 2016‐17 against previous year growth of Rs
581.38 Crore (@ 17.08%).
The Bank has disbursed Rs 3655.37 Crore to 126847 Groups
during the year as against Rs 2773.82 Crore disbursed to
164382 SHGs during the previous year. The Bank has highest
number of Self Help Groups linked to Bank and loan amount
outstanding, among all RRBs in the country.
29
Conducted awareness camp for SHG members and Disbursement of Loans to a tune of
Rs. 25 Crores to SHGs on the occasion of International Women’s Day
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2011
-12
2012
-13
2010
-11
0
500
1000
1500
2000
2500
3000
3500
4000
216
332 60
6 905 11
64 1472
1665
2016
Amt o/sAmt o/sAmt o/s
2013
-14
2513
2015
-16
3403
(Rs. In Crores)
2014
-15
3985
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As per the directions of Government of India and NABARD, we have been implementing Cash Credit System for SHG loans with effect from January 2012. Accordingly, we have arranged for fixing limits for a period of 5 years basing on their present corpus and proposed thrift. The limit will be fixed as 8 times of corpus (1:8) for the current year and for the subsequent years, the limit will be 1:8 of present corpus PLUS expected thrift.
2016
-17
1898
84
4500
5000 4956
2016
-17
SHGs ‐ Vaddileni Runalu
Both the State Governments i.e., Telangana and A.P have been
implementing “Vaddileni Runalu” scheme i.e. reimbursement
of interest for prompt payers of Self Help Groups upto loan
limit of Rs.5.00 lakhs. The Bank would provide particulars of
transactions in SHG accounts relating to all the branches to the
SERP and basing on that, the SERP, Hyderabad, arrives at the
list of SHG accounts eligible for VLR scheme and accordingly
release the interest amount which is credited to the respective
SHG accounts directly.
As per the directions of Government of India, SHG Cash Credit
loans are also to be treated as normal Cash Credit Loans for the
purpose of classification of asset etc. But, as per the
guidelines of VLR scheme the SHGs have to repay a minimum
of 3% of drawing power every month to become eligible for
reimbursement of interest. We have, therefore, insisted the
SHGs for repayment of 3% of drawing power towards EMI,
though it is sufficient if they pay only the interest and other
charges if any, every month.
National Rural Livelihood Mission (NRLM) ‐ Aajeevika –
Interest Subvention Scheme
Our Bank has implemented NRLM Scheme as per the
guidelines issued by NABARD vide their letter No 249/MCID‐
LS/2013‐14 dated 26.11.2013.
The government restructured Swarnajayanthi Grama
Swarozgar Yojana ‐ SGSY (which was in existence since FY
2010‐11) into National Rural Livelihoods Mission (NRLM) to
provide greater focus and momentum for poverty reduction.
The Mission aims at creating efficient and effective
institutional platforms of the rural poor enabling them to
increase household income through sustainable livelihood
enhancements and improved access to financial services.
Under the Scheme, all Women SHGs promoted by NRLM or
other Central or State Government Line Departments or
NABARD or any NGOs, which are linked with our Bank, are
eligible to avail the benefits of the Scheme. As per the
Scheme, GOI identified 250 backward districts all over the
country under Category‐I, of which we have six districts in our
notified area namely Warangal, Khammam, Mahabubnagar
(erstwhile districts in Telangana state) and Srikakulam,
Vizianagaram, Visakhapatnam in Andhra Pradesh.
All such Women SHGs in the six districts have been extended
credit at 7% rate of interest upto Rs 3 Lakhs and Government
would subvent to the extent of difference between 7% and
actual rate of interest (12.5% ) subject to a maximum of 5.5%.
Apart from this, prompt paying SHGs will be extended an
additional 3% subvention. SERP (Society for Elimination of
Rural Poverty) would credit the remaining 4% interest for
30
we are with you! Annual Report 2016-17
prompt repayers reducing ‘ZERO’ interest burden to the
groups.
We have claimed an interest subvention @ 5.5%
Rs 103,69,19,582/‐ and 3% interest Incentive subvention Rs
47,53,21,596/‐ during the year 2016‐17 under NRLM.
We have two districts among the Category‐II districts (other
than the above 250 districts) under NRLM namely Nalgonda
and Medak. Funding for this subvention will be provided by
the SRLM (State Rural Livelihood Mission).
SRLM and SERP will provide each 7% interest as subvention for
prompt repayers through e‐transfer to the SHGs accounts
under the Scheme for Category‐II districts.
National Urban Livelihood Mission (NULM)
Government of India restructured Swarna Jayanti Shahari
Rozgar Yojana (SJSRY) as National Urban Livelihood Mission
(NULM). The SEP (Self Employment programme) component
of NULM focus on providing financial assistance through a
provision of interest subsidy on loans to support
establishment of Individual and Group Enterprises and SHGs
of urban poor. Under the Scheme, (a) Interest subsidy, over
and above 7% of ROI is available on a Bank loan of Rs 2 Lakh to
individual enterprises and Rs 10 Lakh for Group Enterprises.
The difference between 7% p.a. and the prevailing ROI will be
provided to Banks under NULM; (b) SHGs in urban areas can
avail Bank loan at 7% ROI. The difference between 7% p.a. and
the prevailing ROI will be provided to Banks under NULM.
Further, an additional 3% interest subvention will be provided
to all women SHGs for prompt repayment as per repayment
schedule by GOI. Apart from this, as per State Government of
Andhra Pradesh, the balance portion of interest will also be
released under VLR Scheme as per the eligibility.
Priority Sector Lending
In terms of RBI Circular No: FIDD.CO.Plan. BC.No.
14/04.09.01/2015‐16 dated December 3, 2015, w.e.f
01.01.2016 75 per cent of outstanding advances should be
towards Priority Sector, which constitutes loans extended to
(a) Agriculture (Farm credit , Agriculture infrastructure,
Ancillary activities ) (b) Micro, Small and Medium Enterprises
(Manufacturing and Service Sector, KVI and OD to PMJDY) (c)
Education (d) Housing (e) Social Infrastructure (f) Renewable
Energy (g) Weaker Sections and (h) Others (SHG/JLG,
distressed persons, Loans to State Sponsored Organizations
for Scheduled Castes/ Scheduled Tribes).
RRBs will have a target of 75 per cent of their outstanding
advances for priority sector lending and sub‐sector targets as
indicated in table below.
The Bank’s priority sector lending constitutes 89.41 % of total advances. In absolute terms, total priority sector lending stood at Rs 11058.08 Crore as on 31.03.2017 as against Rs 9191.21 Crore as on 31.03.2016. There is a growth of Rs 1866.87 Crore @ 20.31%. The Weaker Sections Loans stood at Rs 8895.42 Crore, which forms 71.92 % of total lending
(Rupees in Crore)
Inter Bank Participation Certificates (IBPC)
In accordance with the RBI guidelines,
a) During the last year i.e. 2015‐16 Bank had participated in
IBPC with SBI for Rs. 648 crores and issued for Rs.1283
crores(cash payout Rs.635 crores) which was expired on
20.05.2016.
b) During the year 2016‐17, the Bank had issued Agri
priority sector advances on cash payout twice. First
issued for Rs 1036 crores on 13.07.2016, which was
expired on 9th January 2017 and second time for Rs. 1320
crores issued on 13.02.2017.
Categories Targets
Total Priority Sector 75% of total outstanding
Agriculture 18% of total outstanding
Small and Marginal Farmers 8% of total outstanding
Micro Enterprises 7.5% of total outstanding
Weaker Sections 15% of total outstanding
2014‐15 2015‐16 2016‐17
No. of O/s No. of O/s No. of O/s A/cs A/cs A/cs
1. Weaker Sections 823030 6616.45 844428 8144.27 972702 8895.42
2. Women borrowers 445768 3082.31 468947 3847.03 480029 4488.13
3. Minorities 46923 362.62 47861 444.64 48992 518.74
4. SCs/STs 211153 1541.15 217487 2226.37 222626 2597.39
31
Poultry unit financed by our Tadur Branch (Mahabubnagar RO) Rs. 1.50 Cr
(Rs in Lakhs)
(Rs in Lakhs)
we are with you! Annual Report 2016-17
Participation in State Credit PlansThe Bank's participation in State Credit Plans is as under: (Rs in Crore)
Retail Lending
During the year, we have focused more on increasing the share of retail lending to Housing, Education Loans, Mortgage
Loans, Personal Gold Loans, MSME etc. Capacity building of the operating staff has been given top priority by conducting
training programmes to diversify the credit portfolio to increase our profitability.
In the branches covered under RASMECCC, Vishakapatnam retail segment has increased by Rs 33.64 Crore over previous
year, of which Housing loan segment has accounted for Rs 24.85 Crore. Total outstandings increased to Rs 53.03 crore
from Rs 19.39 crore at 173.44 %.
Scheme Target Achievement
No. of Amt. No. of Units Units Amt.
SCAP 4223 3131.32 3918 2685.78
BCAP 2813 833.30 2445 721.28
STAP 936 318.89 881 296.01
Minorities 723 451.41 618 386.25
Weavers 591 277.75 476 216.58
Pasukranthi / PPK 1296 2020.20 926 1389.88
MEPMA 389 224.23 233 129.31
PHC 533 389.89 411 297.15
Others 784 531.26 622 411.38
Solar water pumpSystem 19 22.29 19 22.29
Total 12307 8200.54 10549 6555.91
Achievement % 86% 80%
Scheme Outstanding Disbursement from as on 31.3.17 1.4.16 to 31.3.17
No. of Amt. No. of Amt. Units Units
RYS 868 2075.98 0 0.00
SCAP 27332 7709.79 3918 2685.78
BCAP 21232 5587.54 2445 721.28
STAP 24833 5480.62 881 296.01
Minorities 4777 1916.92 618 386.25
VAMBAY/Indiramma 1896 87.87 0 0
Palapragathi/PPK 7173 3472.72 926 1389.88
Others 10851 6884.41 1761 1076.71
Total 98962 33212.85 10549 6555.91
2014‐15 2015‐16 2016‐17
Target Achievement Target Achievement Target Achievement
1. Crop Loans 2223.74 2759.62 2800.00 3888.24 3200.00 3990.71
2. Total Agr& allied activities 100.00 60.42 200.00 164.36 200.00 212.36
3. NFS 108.25 90.74 120.00 211.67 552.00 561.12
4. OPS 1764.22 2070.13 1922.00 3249.82 2289.00 3566.83
5. Total Priority Sector 4196.21 4980.91 5042.00 7514.09 6241.00 8331.02
% of achievement 118.70% 149.03% 133.49%
32
Government Sponsored Schemes
The Bank has participated in Govt Sponsored Schemes actively
during the year and as on 31.3.2017, the total finance
extended under various Schemes and loan outstandings in
various schemes are as under.
Brick making unit financed by our Nalgonda Branch under Prime Mininster employment Generation Programme (PMEGP)
(Rs in Crore)
we are with you! Annual Report 2016-17
CSIS Scheme
Government of India has introduced CSIS Scheme (Central
Scheme for Interest Subsidy) for providing relief to students
who were sanctioned / disbursed from 01.04.2009. Education
loans availed by the students from economically weaker
sections whose annual gross family income is upto Rs 4.50
Lakhs, are eligible under the scheme. Our bank has been
claiming Interest subsidies under this scheme for the eligible
students since 2009‐10 to 2014‐15 on the CSIS portal of
Canara Bank (Nodal Agency) every year. All the claims for all
years has been settled to our bank and partially settled for FY‐
2014‐15.
For the FY 2014‐15 ,we have claimed an amount of Rs
2,09,89,550/‐ in respect of 463 education loan accounts and
received Rs 1,99,87,196/‐ from the Government of India. The
balance of Rs.10,02,354/‐ yet to be released to our Bank by
GoI.
For the FY‐2015‐16 , we have claimed an amount of
Rs.96,88,739/‐ in respect of 353 education loan accounts and
received Rs11,71,905/‐ for SC/ST students. Remaining
subsidy for General students yet to be released by GoI.
ACSISOBCEBC: Further GoI has introduced Dr.Ambedkar's
Central Scheme of Interest Subsidy for Other Backward Caste
(OBC) and Economically Backward Caste (EBC) for providing
relief to students Studying in abroad, who were sanctioned /
disbursed from 01.04.2014. Education loans availed by the
O/s March 2014‐15 O/s March 2015 ‐16 O/s March 2016‐17
S.No Segments No of A/Cs Amount No of A/Cs Amount No of A/Cs Amount
1 Housing Loans 6291 411.26 7012 551.21 8234 773.14
2 Mortgage Loans 2171 53.53 2217 79.62 2567 117.76
3 Education Loans 4106 76.48 3760 84.45 3162 82.66
4 Demand Loans 25054 188.46 22970 210.02 18368 181.78
5 NFS ‐ Term Loan/MSME 43067 124.67 70571 252.33 98167 932.59
6 Personal Loans 18476 229.55 16304 283.49 13259 290.01
7 Personal Gold Loans 145942 691.67 142352 658.45 115201 538.84
Total 245107 1775.62 265186 2119.57 258958 2916.78
33
Financing a Cargo Auto by our Mucharla Branch (Warangal RO) Under
Tie up with Bajaj Auto, Our Chairman Handing over the keys to the Borrower
JCB unit finanaced by our Jinnaram Branch (Ashoka Nagar Region)
under Govt. sponsored SC Action plan
we are with you! Annual Report 2016-17
students from Economically Backward Caste (EBC) whose
annual gross family income is upto Rs 1.00 Lakhs, and for
Other Backward Caste (OBC) income is upto Rs.3.00 Lakhs are
eligible under the scheme. Our bank has been claiming
Interest subsidies under this scheme for the eligible students
on the ACSISOBCEBC portal of Canara Bank (Nodal Agency) for
quarterly intervals , during the year 2016‐17, we have
claimed RS. 9,09,841/‐ for 8 accounts and received claim of
Rs.1,63,210 for two accounts (Girl students on 08.03.2017) .
Jawaharlal Nehru National Solar Mission(JNNSM)
The Jawaharlal Nehru National Solar Mission aims at
addressing one of the most severe problems of the country
today i.e., energy conservation. The Bank has taken the
initiative of financing the solar lighting systems, supporting
the national cause. Total financing under JNNSM stood at 3127
a/cs with amount outstanding Rs.6.59 crore as on 31.03.2017.
Central Registry of Securitisation Asset Reconstruction and
Security Interest of India (CERSAI)
Our Bank had registered with CERSAI in terms of RBI guidelines
and complied with the instructions. Equitable/Registered
mortgages and Hypothecation in respect of all our loans,
which are covered under Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act) as on 31.03.2017 have been registered
with CERSAI.
With this, the details of the security interest created in favour
of our bank is available on a public domain for search by
citizens / other banks / FIs as a result of which the potential
fraud / multiple financing against the same property can be
prevented.
Credit Guarantee Fund Trust For Micro & Small Enterprises
(CGTMSE)
The objective of the Scheme is to make bank credit available to
the first generation entrepreneurs without the hassles of
collaterals / third party guarantees to realize their dream of
setting up a unit of their own Micro and Small Enterprise
(MSE). The Credit Guarantee Scheme (CGS) seeks to reassure
the lender that, in the event of a MSE unit, which availed
collateral free credit facilities, fails to discharge its liabilities to
the lender, the Guarantee Trust would make good the loss
incurred by the lender.
ISB Sector loans excluding retail trade advances and including
Small Road and Transport loans are eligible for guarantee
cover of CGTMSE up to a limit of Rs.10.00 lakhs, as per the
directions of Reserve Bank of India. The coverage of loans
under CGTMSE is as under
Credit Information Companies
Our Bank has been a member of CIBIL (Credit Information
Bureau (India) Limited). CIBIL is the first Credit Information
Company licensed by the RBI and governed by the Credit
Information Companies (Regulation) Act of 2005. CIBIL
collects and maintains records of individuals' and non‐
individuals' (commercial entities) payments pertaining to
loans and credit cards from Banks and other lenders on a
monthly basis. Using this information a Credit Information
Report (CIR) and Credit Score is developed, enabling lenders
to evaluate and approve loan applications.
Our Bank has been uploading the data regularly and all our
Regional Offices and Branches are accessing the credit history
of the loan applicants in their credit decisions.
Three other CICs, viz., Equifax Credit Information Services
Private Limited, Experian Credit Information Company of
India Private Limited and CRIF High Mark Credit Information
Services Private Limited have been granted Certificate of
Registration by RBI.
Reserve Bank of India vide its letter No. DBR No.
CID.BC.60/20.16.056/2014‐15 dated 15.01.2015 has advised
us that all Credit Institutions have a mandate to become
members of all CICs. Accordingly we have become members
of the above three CICs also.
Asset Quality – Management of Non Performing Assets
The Non‐Performing Assets have decreased by Rs. 42.26
Crores from Rs. 252.00 Crores as on 31st March 2016 to
Rs.209.74 Crores as on 31st March 2017. Gross NPAs as a
percentage to total advances has come down from 2.38% as
on 31.3.2016 to 1.69% as on 31.3.2017. Net NPAs (as a %age
to Net advances) has come down from 1.40% to 0.72%. In
absolute terms, Net NPAs was reduced from Rs 147.89 Crore
to Rs 87.58 Crore.
The NPAs have come down in all segments except AATL & SHG
segments which is on account of slippage of some Allied
Agricultural term loans sanction under Govt. sponsored
No.of A/cs Amount
During 2016‐17 2065 1231.29
Cumulative 6453 3800.53
34
Rs. in Lakhs
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programmers by 1.15 Cr and in SHG by Rs.1.6 Cr. This is due to
nonpayment of instalments amounts on account of migration
of some members.
SARFAESI Act and Suit filing
Notices under SARFAESI Act were issued immediately after the
account becoming NPA. This was monitored by Head Office at
monthly intervals. Our actions in this regard have yielded
good results. We have taken demonstrative actions
particularly under SARFAESI. One desk officer each has been
posted to all Regions exclusively for the purpose of monitoring
NPAs who will be responsible for initiating action under
SARFAESI, Suit Filed, vehicle seizure etc., and also closure of
suit filed cases, AUCA recovery etc. Focus was given for
recovery of Recalled debts/ Suit filed accounts. Meetings
with Advocates were conducted in regions for expediting
disposal of suits.
SARFAESI (Rs.in lakhs)
Suit filed Cases
Suit filed Decreed EP filedRecovery after
filing Suit
Cases
1942
Amt
4325.00
Cases
1073
Amt
2037.00
Cases
477
Amt
980.00 159
AmtCases
508
Lokadalat
Lokadalat inter‐alia, is one of the modes of Alternative
Dispute Resolution, of late, gaining popularity as the award
of the Lokadalat shall be deemed to be a decree of Civil
Court. The significant feature of the Lokadalat is that legal
experts holding Lokadalat bench guide the parties in
arriving at a compromise or settlement in a friendly and
harmonious atmosphere.
In order to have uniformity, we have advised the percentage
of remission to be allowed while referring the cases to
Lokadalat Accordingly our branches have participated
exceedingly well and many branches have participated in
Lokadalats. During the year, 281 cases for an amount of
Rs.2.76 Crores were referred to Lokadalats of which 197
cases were settled for an amount of Rs.1.85 Crores. Of
which an amount of Rs.1.23 Crores was recovered.
Compromise settlements
Bank has recovered huge amounts of NPAs in ATL and ISB
Sector during the year 2016‐17 under compromise
settlement which are overdue for several years and where
sufficient provisions are available.
Compromise
No of A/Cs
Amount in Lakhs
2014‐15
754
767.00
2015‐16
1415
1114.63
2016‐17
2656
3536.20
Demand Notice issued Possession notice issued Possession Taken Auctioned Regularised
A/Cs Amt A/Cs Amt A/Cs A/Cs Amt A/C Amt
883 3239.00 405 1496.00 14 9 146 469 1597.00
35
(Rs.in lakhs)
The following strategies were adopted to reduce / contain the
NPAs:
1. One desk officer each has been posted to all regions for
the purpose of monitoring NPAs who will be responsible
for initiating action under SARFAESI, Suit Filed, vehicle
seizure etc., and also closure of suit filed cases, AUCA
recovery etc.
2. Chief Managers at Head Office (HODs) have been
allocated one Region each to monitor NPA position
regularly and visited branches, meeting NPA borrowers.
3. NPA accounts above Rs.20.00 Lakhs outstanding are being
monitored by Chairman personally.
4. Top 100 NPA branches were monitored personally by
Chairman, four General Managers for reduction of NPA.
Combined Paddy Harvesting machine financed by our JagdevpurBranch (Ashoknagar RO) Under Govt. Sponsored Scheme
we are with you! Annual Report 2016-17
5. Chronic NPA branches have been allotted to officials at
Head Office to monitor and reduce the NPAs.
6. NPAs between Rs.6.00 Lakhs to Rs.20.00 Lakhs in the
allotted regions were monitored by General Managers.
7. Review mechanism has been put in place. Regular review
meetings are being conducted for Manager (Advances)
and Regional Managers.
8. Wide publicity was given with regard to advantages on
renewal of crop loans viz., enhanced scales of finance,
crop insurance facility, interest subvention incentive from
GOI and Vaddi Leni Runalu other government sponsored
schemes by way of arranging meetings, displaying wall
posters, Banners etc.
Asset Classification (Rs in Crores)
Internal Control System – Inspection & Audit
The Risk Focused Internal Audit Report System has been implemented in the Bank from July 2009, as suggested by our Sponsored
Bank i.e. State Bank of India. To tighten the criteria to qualify for better ratings, the Bank has raised the benchmark for the Inspection
ratings with effect from 01.09.2011.
For further strengthening of the audit system the new format of RFIA has been introduced in the Bank w.e.f.01.10.2016 as advised
by our Sponsored Bank. As per the revised format the nomenclature of ratings have been changed as under:
Assets 2013‐14 2014‐15 2015‐16 2016‐17
O/s % O/s % O/s % O/s %
Standard 7545.61 95.57 8766.58 96.70 10349.77 97.62 12158.79 98.30
Sub Standard 159.53 2.02 165.09 1.82 77.60 0.73 36.69 0.30
Bad & Doubtful 189.23 2.40 133.25 1.47 173.63 1.64 171.61 1.39
Loss 1.05 0.01 0.68 0.01 0.76 0.01 1.43 0.01
Total NPAs 349.81 4.43 299.03 3.30 251.99 2.38 209.74 1.69
Total Advances 7895.42 100 9065.61 100 10601.76 100 12368.53 100
9. Top management has conducted audio conferences at
frequent intervals with Regional Managers, Manager
(Adv.), Desk Officers (NPAM),BMs for reviewing the
reduction of NPAs.
10. Account Tracking Centre (ATC) ‐ The officials posted at ATC
continuously called borrowers under IRAC 1, 2, 4 and
above for up‐gradation of accounts.
11. Five to six clusters in each region have been formed with
officials having good track record for capacity building
and reduction of NPAs.
12. Conducted auction for Gold ornaments pertaining to
Personal Gold Loans which became overdue, at common
date at quarterly intervals.
Existing Rating Revised Rating Range of Marks
Excellent Well Controlled ‐ A+ >=850
Good Adequately Controlled ‐ A >700 and <=850
Satisfactory Moderately Controlled ‐ B >600 and <=699
Not Satisfactorily Run Unsatisfactorily Controlled ‐ C <600
36
we are with you! Annual Report 2016-17
The marks allotted under each parameter have also been revised as under:
Branches with 'Excellent/Well Controlled – A+' and 'Good/
Adequately Controlled ‐ A' ratings are audited within 18
months from the previous audit date while the Branches with
'Satisfactorily/ Moderately Controlled ‐ B' and 'Not
Satisfactorily Run/ Unsatisfactorily Controlled ‐ C' rated
branches are audited within a year.
During the year 476 branches have fallen due for Audit and all
476 branches have been audited. Rating acquired by 476
branches is as under:
∙ 43 Branches have upgraded from 'Good' to
'Excellent/Well Controlled – A+';
∙ 234 Branches have retained 'Excellent/ Well Controlled –
A+'' rating;
∙ 114 Branches have retained 'Good/Adequately
Controlled ‐ A' rating;
∙ Totally 62 Branches have downgraded to a lower grade.
∙ 23 New branches audited.
∙ No “Satisfactory/ Moderately Controlled ‐ B” and “Not
satisfactory /Unsatisfactorily Controlled ‐ C” Branches as
on 31.03.2017
No
The break‐up of rating of total branches is as under:
S. Parameter Existing Revised No Format ‐ Format ‐ Marks Marks
1 Business Development 230 100
2 Credit Risk Management 250 450
3 Operational Risk Management 460 410
4 External Compliance 60 30
5 Self‐Audit 0 10
Rating Out of 474 Branches audited Out of 476 Branches audited
during 2015‐16 % during 2016‐17 %
Excellent 326 69 296 62
Good 148 31 180 38
Satisfactory ‐ ‐ ‐
Not Satisfactorily Run ‐ ‐
474 100 476 100
Sl. Particulars Position as on
31‐3‐13 31‐3‐14 31‐3‐15 31‐3‐16 31‐3‐17
01 Excellent/ Well Controlled ‐ A+ 247 320 395 484 486
02 Good/ Adequately Controlled ‐ A' 301 310 307 244 265
03 Satisfactory/ Moderately Controlled‐ B 26 03 02 0 0
04 Unsatisfactory/ Unsatisfactorily Controlled‐C ‐ ‐ 0 0 0
05 New Branches 64 71 24 23 17
06 Total 638 704 728 751 768
37
we are with you! Annual Report 2016-17
Out of 465 Audit Reports which have fallen due for closure
during the year, 451 have been dealt with and remaining 14
Reports are pending for closure. These reports are overdue for
closure for less than 3 months.
During the year, we have also audited 11 Regional Offices and
Ratings have been assigned to ROs to infuse competitive
environment among ROs to secure excellence in their
operations. Audit was also carried out in Accounts
Department, RASMECCC at Head Office.
The reports submitted by the Auditors have been dealt with by
taking corrective measures, wherever necessary. The
Department has carried out its operations with fair and
without prejudice which helped in strengthening the systems
and procedures.
Apart from this, the following audits have also been carried
out to enhance the efficiency levels:
Snap Audit – The schedule of Snap Audits have been advised
to ROs on monthly basis to depute Officials from Region to
other Region to carry out the Snap Audit of Branches to have
effective audit of the Branches. 963 Snap Audits have been
conducted during the year 2016‐17.
Income Audit – 384 branches have been subjected to Income
Audit during the year 2016‐17 and income leakage identified
and plugged to the extent of Rs 2.48 Cr.
Special Audit of segments: During the year top 37 branches
under Gold Loan Segment have been audited in all aspects to
ascertain quality of assets and documentation , apart from
adherence to the systems and procedure as per extant
instructions.
Compliance Audit:
Compliance audit is introduced with a graded system of
penalty. 10% of branches audited during the previous year
have been covered under compliance audit. Compliance Audit
has been conducted at 48 branches during the year 2016‐17.
Concurrent Audit
As a part of internal control system in our Bank, Concurrent
Audit is introduced from the financial year 2012‐13 as per the
policy guidelines issued by NABARD. Keeping in view the staff
availability, the Concurrent Audit is being conducted at 36
branches with the help of three Auditors. We propose to
extend the said Audit to cover at least 50% of the Credit and
other exposures of the Bank under Concurrent Audit System in
compliance with the guidelines issued by NABARD.
The Scope of Concurrent Audit is designed to cover (a)
handling of cash (b) safe custody of securities (c) exercise of
discretionary powers (d) sundry and suspense accounts (e)
clearing differences (f) off balance sheet items, security
aspects, verification of Assets Quality etc.
Audit Committee of the Board
The Audit Committee, constituted with one SBI‐nominee‐
director as Chairman and nominee directors of RBI , NABARD
and Govt. of India as members has met 3 times during the year
and reviewed the Financial Statements, Quarterly Profit &
Loss, Balance Sheet etc., of the Bank, audit function, quality of
the audit system, common irregularities observed by the
Auditors and compliance thereof and transparency and
accuracy that the audit system has carried.
Management Audit
Our Sponsor Bank (State Bank of India) has conducted
Management Audit of the Bank during the year, under section
24 A of Regional Rural Banks Act 1976 covering the period
from 01.04.2015 to 31.3.2016. The Management Audit
Report was duly complied with and compliance report
submitted to our Sponsor Bank, State Bank of India, within the
stipulated time.
NABARD Inspection under Section 35(6) of the Banking
Regulation Act 1949
National Bank for Agriculture and Rural Development
(NABARD) under Section 35(6) of the Banking Regulation Act
1949 has also conducted VIth Statutory Inspection of our
Bank with reference to the financial position as on
31.03.2016.
Branch Expansion
The Bank has opened new Branches at 17 new locations
during FY 2016‐17 taking the total number of branches to 768
as on 31.3.2017.
38
Online inauguration of 13 new branches by Sri Hardayal prasad,
CGM,SBI,LHO Hyderabad on 30.03.2017
we are with you! Annual Report 2016-17
Financial Inclusion
Access to financial services through alternative delivery
channels particularly Business Correspondent Agents (Bank
Mitras) has been a priority area for the Bank. Significant
efforts were made to strengthen the Bankmitra in terms of (a)
increasing outreach (b) technology up‐gradation (c) de‐
duplication of bankmitra accounts (d) activation of zero
balance accounts (e) stabilization of the reporting and
monitoring system (f) capacity building (g) building trust on BC
model banking among public to formalize their activities in the
rural areas and more importantly (h) increasing Bank Mitra
transactions so as to enhance the commission for Bank Mitras.
1867 Bank Mitras are operating in 4444 villages which do not
have a formal banking outlet of any Bank. Out of 4444, 825
villages are with population of 2000 and above and remaining
3619 villages with a population less than 2000).
Various products/transactions viz., Savings, Remittance,
Recurring Deposits, Insurance and Self Help Groups have been
rolled out through Business Correspondent Agents (BCAs) /
Bank Mitras to provide access to Banking and Financial
Services to the people living in the backward / unbanked
villages.
The focus on Bank Mitras during the year has reflected in the
following statistics:
∙ 48,36,690 transactions took place in bank Mitra accounts
as against 36,86,180 during previous year with an
increase of 11,50,510 transactions.
∙ Total amount involved in the transactions has also gone
up by 91% i.e., from previous FY's Rs 298.08Crore to
Rs569.78Crore during the year.
∙ Zero balance accounts have come down from 50% during
previous FY to 13% during the year.
FI operations
The entire Financial Inclusion (FI) operations at BCAs work on
the principle of Biometric verification of the beneficiaries by
using micro ATMs and are online, hitting our CBS server
instantly through Third Party Integration, which facilitates
updation of transactions carried out by BCAs on real time
basis, in CBS Server, via TSPs' Servers. All these devices have
the features stipulated by UIDAI. For more transparent Bio‐
Metric payment system, the Bank has started the process of
seeding Aadhaar numbers for both the old and new accounts
to initiate the Aadhaar Enabled Payment System (AEPS). The
Bank has already seeded 36,87,406 accounts with Aadhaar
and placed in NPCI mapper.
Pradhan Manthri Jan DhanYojana (PMJDY)
After the launch of PradhanMantri Jan DhanYojana (PMJDY)
on 15.08.2014 by the Hon'ble Prime Minister of India, the
Bank has opened 2.83 Lakh Basic Savings Bank Deposit
Accounts taking to total to 14,89,167 PMJDY Accounts and
almost saturated all the Households in 4,444 villages through
1867 Business Correspondent Agents (BCAs) and 768 Brick
and Mortar branches.
PMJDY is a wonderful and huge step which seeks to improve
the state of Financial Inclusion which has already been on in
India. The salient features of Accounts opening under PMJDY,
which makes the initiative more forward looking vis‐à‐vis
previous initiatives of GOI in Financial Inclusion are providing
39
Conducted Financial Literacy camps by our FLCs in Vishakapatanam Region to create awareness on bank’s products,
SHG Lendings, cashless transactions, Mobile banking etc.
we are with you! Annual Report 2016-17
Basic Savings Banking Accounts with (a) overdraft facility (b)
RuPay Debit card and (c) Personal Accidental Insurance
coverage of Rs 1 Lakh to the card holder.
We are targeting issue of RuPay Cards to all PMJDY account
holders loaded with insurance coverage and overdraft facility
during the year 2017‐18. NABARD was kind enough to
sanction a grant assistance of Rs.2.00 crores, i.e., 80% of the
total project cost of Rs.2.50 crores for distribution of 10 lakh
RuPay Debit cards to those customers only whose accounts
have been opened or being opened under Financial Inclusion
Plan (FIP)
Ultra Small Branches (USBs) in villages having population of
2000 and above
As per the GOI and RBI guidelines, the Bank has 493 USBs as at
the end of the current financial year in the FI villages having
population of 2000 and above. The Business Correspondent
Agents operate from these USBs. The USBs are provided with
minimum required space, furniture, stationery / registers for
enrollment and transactions maintenance. We have also
assigned a common signage to these USBs and provided the
boards for the Bank identity.
These USBs will turn into full fledged brick and mortar
branches in the coming months depending on the volume of
business garnered. Bank has provided the requisite
infrastructure like Tables / Chairs / Almirahs. The Bank has also
assigned a common signage to these USBs and provided the
boards for the Bank identity.
Direct Benefit Transfer ‐ Aadhar Payment Bridge System
(APBS):
Our Bank has been allotted all the 8 operating districts viz.,
SrikakulamVizianagaram, Visakhapatnam in AP and undivided
Khammam, Warangal, Nalgonda, Mahabubnagar and Medak
districts in Telangana for DBT Rollout.
We have successfully on boarded to Aadhar Payment Bridge
System (APBS), being the 1st RRB from the State Bank group in
the Country to implement Direct Benefit Transfer (DBT) for
LPG subsidy. We have so far received LPG subsidy benefit to
the 6267365 customers amounting to Rs 71.45 crores.
Aadhar Enabled Payment System (AEPS):
Aadhar Enabled Payment System was implemented by our
Bank during 2016‐17 and transactions were enabled in the
month of October 2015. Now all the customers holding
Aadhar seeded accounts can avail banking services at any
CSP/Branch of the bank. (Out of 1867 CSPs). The total number
of successful transactions are 23,35,991 (ONUS – 10,11,992
and OFFUS – 13,23,999) as on 31.03.2017.
FI‐CSP connectivity
In order to provide uninterrupted service to FI customers'
connectivity and other back end infrastructure continuous
monitoring mechanism is put in place. This has brought
improvement in FI transactions being carried out by CSP's.
FI (CSP) Transactions for the year 2016‐17
Financial Literacy Centres (FLCs):
With a prime objective to impart financial literacy in the form
of simple messages like 'why save with Banks, why borrow
from Banks, why repay the loans in time' the Reserve Bank of
India has advised all the Banks to set up one Financial Literacy
Center (FLC) each in the operating districts of the Bank. The
Bank has opened 8 such Financial Literacy Centres in 8
districts viz., Srikakulam, Vizianagaram, Visakhapatnam,
Khammam, Warangal, Nalgonda, Mahbubnagar and Medak
in tune with the guidelines issued by the NABARD. The
NABARD has sanctioned Grant Assistance of Rs.32.00 lacs
@Rs.4.00 lacs per FLC for operation of these 8 FLCs. The Bank
has posted retired Bank staff to look after the affairs of FLCs as
counselors. These FLCs are located at the district centres and
housed in the Regional Offices.
Financial Literacy Awareness Camps (FLACs)
The Bank has taken several Financial Literacy initiatives by
organizing 931 Financial Literacy Awareness Camps (FLACs)
and 1369 Grama Sabhas with Magic Shows, Street Plays and
Local Folks to educate the rural people to avail the Banking
and Financial Services at their door steps through Business
Correspondent Agents.
The publicity material in the form of pamphlets, brochures
and banners were distributed during the camps to spread the
message of financial awareness among the rural people. The
Bank has appointed Nodal Officers at each Regional Office
exclusively to monitor, supervise the FI activity and increase
business. The National Bank has sanctioned Grant Assistance
of Rs. 48.00 lacs under FIF for organizing these FLACs.
Financial Literacy and Credit Counseling Centres (FLCCs)
The Bank has joined hands with SBI, SBH and Telangana
Grameena Bank (all State Bank entities) for establishment of
Aardhika Viveka Aacharana (AVA)/FLCCs with contributions at
Transaction type No of Transactions Amount
Deposits 23,09,121 259.36
Withdrawals 25,27,569 310.42
40
Rs. In Crores
we are with you! Annual Report 2016-17
the ratio of 5:4:1:1, in the State in terms of RBI's directives. A
Governing Body has been formed under the Chairmanship of
General Manager (NW‐II), State Bank of India with our Bank's
Chairman as member. 12 FLCCs were established in the State
and created a corpus of Rs 42.78 Lacs to which our Bank had
contributed its share of Rs 3.89 Lacs.
The FLCCs benefit the citizens and SHGs by providing
necessary information on utilizing financial products available
suiting individual requirements and plans for future
development. Interest rates in deposits and advances,
selecting the right kind of deposit, availing loans depending on
the need, income generation, repaying capacity, preparation
of debt restructuring plan, customer rights, etc., are part of
the counseling services.
Cross Selling
SBI Life Insurance
The Bank is a corporate agent of SBI Life Insurance Corporation
Limited, to meet the life insurance needs of the Bank's
customers, as part of Financial Inclusion apart from earning
non‐interest income. The Bank stood No.1 in the country by
mobilizing a New Business Premium (NBP) of Rs.18.54 crores
during the year 2016‐17 and earned a commission of Rs 2.14
cr. The performance highlights are as under:
We have also achieved a business share of 20% of State Bank
Group RRBs in both the premium and business commission for
the year 2016‐17.
SBI General Insurance
We have commenced SBI General Insurance Business during
the year 2015‐16 as a Corporate Agent and mobilized a
business premium of Rs 757.70 lacs during the year 2016‐
17,with an increase of more than 800% over the previous
Year's Rs 92.70 Lacs. Marketed two Insurance products viz.,
group Health Insurance Scheme and Group Personal
Accidental Insurance Scheme apart from insurance to the
Assets financed by the Bank to the eligible and willing
customers.
Information Technology
Demonetization Environment
The financial year 2016‐17 was a year of reckoning for the
banking industry in the demonetization environment
announced by the Government of India. The banking industry
was under pressure in meeting the expectations of the
customers and statutory authorities in meeting the
challenges thrown on account of demonetization such as
improving cash less transactions, strengthening the alternate
delivery channels, improving infrastructure in information
technology etc.
Our bank rose to the occasion by evaluating its alternate
delivery channels and reorienting its operations towards
educating its customers in delivery and use of alternate
delivery channels at the customer's door steps. The following
strategies were adopted in spreading of cash less
transactions in bank's area of operations:
a) Village meets were organized to explain cashless
transactions.
b) Rupay KCC and PMJDY debit cards were delivered to bank
customers at their door step by organizing camps.
c) Bank's ATMs were got re‐calibrated and arrangements
were made to see that cash was dispensed by the
machines at all times. This has won the bank a number of
accolades from the customers/citizens.
d) Bank's Mobile ATM was deployed in villages and towns in
the area of operation of our bank to dispense cash to the
needy.
e) The CBS environment was timely re‐oriented to function
as per the RBI directives in the demonization period.
Parameter Budget for Achievement 2016‐17
New Business Premium 14.25 18.54
Business commission 1.50 2.14
Parameter State Bank APGVB Business share Group RRBs
New Business Premium 93.33 18.54 20 %
Business commission 12.93 2.14 17%
41
Rs. In Crores
Rs. In Crores
Creating awareness on Mobile Banking,
Cashless transactions and RuPay ATM Cards
we are with you! Annual Report 2016-17
Rupay ATM Debit Card transactions
Point of Sale Machines (PoS): PoS transactions increased by 416% over the previous year which indicated that bank's customers
adopting cashless transactions to meet their financial transactions
Immediate Payment System (IMPS)As sub‐member of our sponsor bank SBI, our bank is permitted on IMPS platform of NPCI as Beneficiary bank only. At present bank's
IMPS services limited to inward remittances only and there is considerable growth in transactions during the year.
Mobile Banking Services (MBS)
To provide our customers the latest banking technology product, Mobile banking facility was launched in May 2016. The mobile
banking facility has been rolled out on Android, IOS and windows mobile operating systems. Bank's Mobile banking app is a
bilingual one and available both in Telugu and English languages.
42
Period 2015‐16 2016‐17
Type of Transactions No.of Transactions (Rs. in crores) No.of Transactions (Rs. in crores)
ATM‐Issuer 27,36,866 536.53 40,59,575 750.62
ATM‐Acquirer 10,687 2.00 65,616 10.27
POS Transactions
Period 2015‐16 2016‐17
Type of Transactions No.of Transactions (Rs. in crores) No.of Transactions (Rs. in crores)
As Beneficiary Bank 1,40,972 10.09 7,28,617 96.43
Period 2015‐16 2016‐17
Type of Transactions No.of Transactions (Rs. in crores) No.of Transactions (Rs. in crores)
As Beneficiary Bank 570 1.02 55,409 65.89
IMPS transactions
ATM TransactionsThe ATM transactions increased by 48% in the issuer category and an increase of 513 % in the acquirer category. The growth in the issuer ATM transactions was on account of making cash available at our onsite ATM's during the demonetization period and thereafter.
Launching of Mobile Banking by Shri. Hardayal Prasad,
CGM SBI LHO, Hyderabad
Hon’ble Central Minister Shri Bandaru Dattatreya Visited the Stall arranged by bank to create awarness on cash less banking,
Mobile Banking, ATM Cards, Micro ATMs by Business correspondents etcin Digidhan Mela held on 18‐01‐2017 at Hyderbad
we are with you! Annual Report 2016-17
INTERNET BANKING
After complying with the directives of RBI, Internet Banking
with view rights was rolled out to our customers by the bank.
There is good demand from our customers for roll out of
transaction rights also for which we are expecting permission
from RBI. As on 31.03.2017, internet banking view rights has
been enabled to 1932 customers.
RTGS & NEFT
A popular mode of funds remittance among our customers.
The NEFT transactions grew by 44% and RTGS transactions by
59% during the year.
NEFT & RTGS Transactions
National Automated Clearing House (NACH): During the year, our bank on boarded NPCI’s NACH platform as sponsor bank for
enabling debit transactions. Our bank participates in NACH and ABPS transactions and the trends of transactions during the year
were as follows:
Bank Mitra Transactions: The banking transactions at Bank Mitra points have been increased considerably during the year with
the enablement of Rupay cards ,regular monitoring of bank mitra activities. In order to take banking transactions to the last mile in
Financial Inclusion, AEPS transactions both Onus and Offus were enabled at Bank Mitra points in August 2016.
43
Period 2015‐16 2016‐17
Type of Transactions No.of Transactions (Rs. in crores) No.of Transactions (Rs. in crores)
NEFT (Inward) 47,01,219 2667.46 65,69,064 4686.13
NEFT (Outward) 2,87,918 1396.31 6,29,086 2942.66
RTGS (Inward) 7,816 1137.86 11,534 944.00
RTGS (Outward) 7,627 966.64 13,047 1251.60
ABPS & NACH Trancsactions
Period 2015‐16 2016‐17
Type of Transactions No.of Transactions (Rs. in crores) No.of Transactions (Rs. in crores)
ACH ‐ Cr 11,36,372 42.87 16,67,668 56.46
ABPS 25,91376 54.64 62,67,365 71.45
Bank Mitra (FI) Transactions
Period 2015‐16 2016‐17
Type of Transactions No.of Transactions (Rs. in crores) No.of Transactions (Rs. in crores)
Deposits 22,31,202 149.39 23,09,121 259.36
Withdrawals 14,54,978 148.69 25,27,569 310.42
No of SB Accounts opened 1,66,549 ‐ 51,449 ‐
No of RD Accountsopened 34,631 ‐ 24,455 ‐
Nature of complaint Officer in Officer in At Head Office level charge at Branch charge at RO
General Complaints (other than Branch Manager Regional Manager Chief Manage (Board) vigilance nature) & complaints under the control of General Manager‐IIIfrom / through the Banking Ombudsman
Complaints of vigilance nature Branch Manager Regional Manager Chief Manage (Vig) under the control of General Manager‐I
we are with you! Annual Report 2016-17
The AEPS transaction carried out in this financial yearare as follows:
Security Day on Information Technology
Bank has observed Security day on 30.11.2016 as part of
educating the bank's staff and customers on safety measures
to be taken in use of technology, Do's and Don't s in use of
hardware/software, precautions to be taken in conducting
banking operations. Customers meets were conducted to
educate them and Pamplets containing the safety measures
were distributed to them.
Liability Central Processing Center: Bank has provided to its
customers with personalized cheque books during the year.
This facility would lead to enhanced brand image of the bank.
Security Measures – Installation of CCTVs and Burglar Alarm
Systems
Physical security systems that effectively protect the Bank
assets, customers, and employees assume paramount
importance, in view of increasing incidence of robberies,
mischief. The Bank has provided CC Cameras & Burglar Alarms
to all 768 branches of the Bank.
Project Ambiance
Providing facelift and pleasant ambiance at Branches has
been one of the focused areas of the Bank as part of
enhancing customer service and satisfaction. The Bank has
spent Rs 1.80 Crore during the year 2016‐17 and 51 Branches
have been given for facelift.
Construction of own building
Bank has taken possession of 3 own buildings at
Mahabubnagar (Gopalpet & Elkur) & Nalgonda(Atmakur) ,
whereas construction of own buildings at our own sites in
Khammam, Nalgonda & Sangareddy districts are in progress
Customer Service & Complaints handling
All Branches are conducting customer meets every quarter
and important customers are invited. Their views and
opinions were solicited in order to take corrective steps,
wherever necessary. Regional Managers concerned are
attending the customer meetings whenever feasible.
The Bank has put in place complaint‐handling‐policy to
redress the grievances of the customers and improve the
quality of customer service. The following system of
monitoring of complaints for their redressal and submission
of compliance is in vogue:
Type of Transactions No. of Transactions
AEPS (Onus) 10,11,992
AEPS (Offus) 13,23,999
Total AEPS 23,35,991
44
Whistle Blowing Policy with an objective of providing an avenue for raising concerns related to frauds, corruption or any other misconduct is also in place. The Bank has also installed a Toll Free Number to receive feedback from the customers on the Bank's services.
Right to Information Act
The Bank implemented the Right to Information Act, 2005 in letter & spirit setting out the practical regime of right to information for citizens to secure access to information under the control of bank in order to promote transparency and
accountability in the working of bank's various functionaries.
At the Branch level, the Branch Manager has been designated as Central Assistant Public Information Officer while the Regional Manager concerned is designated as the Central Public Information Officer. At Head Office level, the Law Officer is the Central Assistant Public Information Officer and the Chief Manager (Audit & Inspection) is the Central Public Information Officer. The General Manager – III has been designated as Appellate Authority in the Bank, under RTI Act.
During the year 2016‐17, the Bank has received 181 applications and 29 appeals and disposed off all applications and appeals within the stipulated time frame.
Our Chairman distributing PoS Machines to Bank Mitras, during a Programme
on Cashless Transactions held in Yerravalli & Narsannapet Villages
45
we are with you! Annual Report 2016-17
Our Chairman felicitating Top performers in NPA Reduction
during the year 2016‐17
FINANCING POLY HOUSES FOR CULTIVATION OF FLOWERS & VEGETABLES
SIDDIPET BRANCHSIDDIPET BRANCHSIDDIPET BRANCH SHADNAGAR BRANCHSHADNAGAR BRANCHSHADNAGAR BRANCH
Poly houses of Cultivation of Gerbara Flowers Financed by our siddipet & Shadnagar Branches with subsidy support from Govt. /NABARD
Poly house financed by our saluru branch (Parvathipuram Region) for cultivation of vegetables
Officers S‐IV 48
Officers S‐III 170
Officers S‐II 486
Officers S‐I 1117
Office Assistants 1097
Office Attendants 94
Total 3012
we are with you! Annual Report 2016-17
During the year, 104 staff members have retired from the
Bank's Service. 81 staff members have resigned two staff
members were removed from service. Eleven Staff members
expired during the year.
182160.46%
109736.42%
943.13%
Officers
Office Assistants
Office Attendants
Recruitments
Since 2009‐10, the Bank has been recruiting staff through
IBPS, as per manpower assessment and requirement stundertaken as on 31 March of every year in terms of Thorat
Committee recommendations, presently as per Mitra
committee recommendations approved by GOI. Last seven
years have witnessed mass retirements of those staff
members who had joined erstwhile RRBs in late 1970s and in
1980s.
Accordingly, based on the business volumes as on 31.3.2016,
the Bank has taken up recruitment exercise for augmentation
of staff in various grades, including lateral recruitment of
Scale‐II and Scale‐III Officers in General Banking and with
specialization in Law, IT, Marketing, Treasury, CA etc
Grade No. of Candidates recruited during the year
1 Office Assistants 130
3 Officers Scale‐I 40
4 Officers Scale‐II 21
5 Officers Scale‐III 03
194
46
Human Resource Management
As the end of FY 2016‐17, the staff strength (excluding those who exited the Bank service in the month of March 2017 on account of retirements / resignations) and its composition is as under:
As at the end of FY 2016‐17, there are 128 Scale‐II Officers and
23 Scale‐III Officers directly recruited from the market
laterally.
The Bank's in house Learning Centre has been working
continuously to train and re‐train the new recruits imparting
skills and supply inputs in all areas to equip them to handle the
day to day functions well. All the recruitments have been
completed through the Common Written Test including
interviews conducted by IBPS.
Promotions
Keeping in view the Bank's policy of giving promotions
promptly to staff, we have taken up promotion exercise in
terms of manpower assessment as on 31.03.2016 and
promoted as many as 162 people in various cadres to next
higher grade as under. Written Test for promotion was
arranged through IBPS online from this FY onwards.
Promoted to No. of Posts
1 Officers Scale‐I 62
2 Officers Scale‐II 37
3 Officers Scale‐III 51
4 Officers Scale‐IV 12
5. Office Asst. 0
162
The Bank has fulfilled the statutory requirement of giving pre‐
promotion training to all SC/ST candidates, eligible for
promotion, prior to written test. This has enabled the SC/ST
candidates to prepare themselves better, to take on the
written test.
Training ‐ Staff Learning Centre
The Bank had laid down a Training Policy which envisages
training to all staff members, atleast once in three years.
During the year, APGVBSLC has conducted 61 training
programmes and provided training to 1686 staff members.
The participants include all cadres of staff (Officers‐1079,
we are with you! Annual Report 2016-17
Off.Assts‐604 & Off.Attendents ‐3)
The Bank has also deputed 48 staff members, essentially in
the higher cadres, to external training institutions like BIRD
(Lucknow), RBI (CAB, Pune), BIRD (Mangalore), State Bank
Learning Centres on important subjects like AML, ALM, KYC,
RTI Act, Treasury Management, Business Development etc.
Staff welfare measures
Mediclaim policy
The Bank has renewed the Group Medi Claim Floater Policy
with United India Insurance Company Limited, after following
CVC guidelines. The Floater Policy covered the
Hospitalisation expenses upto Rs 4 Lakh for the Staff and their
spouse including buffer amount of Rs 2 Lakh. The Scheme,
apart from facilitating hassle free admission into the hospital
immediately and payment of cash, makes the settlement of
hospitalization expenses become much easier, saving
administrative time considerably. The scheme also covers
domiciliary treatment expenses up to Rs 20,000/‐
Gratuity and Leave Encashment Fund
The Bank has taken care of provisional requirements in
respect of Gratuity. The total corpus as on 31.3.2017 is to the
tune of Rs 153,22,07,375 towards Gratuity and
Rs 86,31,76,980 towards Leave Encashment.
Industrial Relations
The Management and Officers Association and Employees
Union have worked in tandem for the welfare of the staff
members and business development, sorting out amicable
solutions for routine issues that cropped up during the year.
Cordial and amiable working atmosphere has prevailed
during the year.
Welfare of SC/ST and OBC Employees
The Bank has maintained cordial relations with the SC/ST
Welfare Association and OBC Welfare Association and
complied with statutory requirements in all aspects of
recruitments, promotions etc. The Bank has held regular
meetings with the representatives of Welfare Associations
and Liaision Officers to redress their grievances.
The Bank has taken all steps to keep up the morale and
motivation of the employees.
47
Settlement of Terminal Benefits
The Bank has made a policy that all terminal benefits are
settled on the date of retirement of staff members. The
process begins two months in advance of retirement to ensure
that all formalities are completed to make payment on the
date of retirement.
Payment of Ex‐gratia
The Bank has implemented the GOI instructions, contained in
their notification No: F.20/5/2003—RRB dated 9.6.2006, on
payment of ex‐gratia in lieu of appointment on compassionate
grounds for the legal heirs of the bereaved staff members and
also to the staff who are chronically sick and immobile on sick
grounds. The cadre‐wise ceiling of ex‐gratia and total amount
paid are as under:
Grade Ceiling of Amount paid Ex‐gratia during the year
1 Officers Rs 8 Lakhs Rs 5,98,965/‐
2 Clerical Staff Rs 7 Lakhs Rs 7,00,000/‐
3 Sub‐Staff Rs 6 Lakhs Rs 12,98,965/‐
Vigillance Awareness WeekBank has observed Vigilance Awareness Week from 31.10.2016 to 05.11.2016 throughout the bank. All Staff members have taken e‐pledge and conducted Vigilance Awareness Programmes at branches
Chairman, General Managers and all the staff membersat Head office taking Oath in connec�on with
Vigilance Awareness Week
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48
Our Bank has celebrated International Women's Day on 8.3.2017 by involving our lady staff members from Branches. We have also organised Sessions by Dr. Swaroopa Rani and Dr. Rajitha Reddy for the benefit of our lady staff on effective management of the personal and professional life.
MEGA SPORTS MEET
Bank has conducted first ever Mega Sports meet with four events namely Cricket, Shuttle Badminton, Carroms and Chess. Totally 250 Staff members participated in the events. It motivated the staff members particularly the younger generation and developed a bond among staff
from various regions.
49
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Attendance of Directors at Board Meetings during the calendar year 2016
S. No. Name of the Director WEF No. of Meetings No. of Meetings
held attended
1 Shri V. Narasi Reddy 21.07.2014 6 6
2 Shri CL Naidu 28.06.2013 6 *4
3 Shri V. Hanumantha Reddy 27.09.2013 6 *4
4 Shri M.S.Harishankar 24.06.2016
Shri S. Chellapandi 22.07.2014 6 6
5 Shri V.S.Gupta 03.08.2015 6 6
6 Shri T.V. Reddy 28.07.2014 6 4
7 Shri KV Maruthi Rao 24.10.2014 6 4
8 Smt K.Sunitha,IAS 27.06.2015 6 Nil
9 Ms. K.Amrapali,IAS 11.10.2016
Smt. V. Karuna, IAS 11.01.2015 6 Nil
which were confirmed by the Board in the following
Meetings.
The Board has undergone the following changes in the
composition on account of transfer of officials during the year.
Shri S.Chellapandi, Asst. General Manager, RBI,
Hyderabad, RBI nominee director on the Bank's Board
has been replaced by Shri M.S.Harishankar Asst. General
Manager, FIDD,RBI, Hyderabad during the year.
Smt. V.Karuna, IAS, Dist collector & Magistrate,
Warangal, Telangana State Government nominee
director on the Bank's Board has been replaced by her
successor Ms.K.Amrapali, IAS, Dist collector &
Magistrate, Warangal (urban) during the year.
Both the Govt.of India nominee directors Shri V.
Hanumantha Reddy and Shri C.L Naidu have left the
board on completion of their term during the year.
The Bank places on record the invaluable services
rendered by the Directors Shri S.Chellapandi, AGM,
RBI, Hyderabad, Smt. V.Karuna,IAS, Dist collector &
Magistrate, Warangal, Shri V. Hanumantha Reddy and
Shri C.L Naidu, GOI nominee directors who left the Board
during the year.
50
Board
The Board of the Bank is constituted by
(a) Chairman of the Bank
(b) two non‐official directors appointed by Govt. of India
(C) one nominee director each from Reserve Bank of India
and NABARD
(d) two nominee directors from Sponsor Bank
(e) two nominee directors from State Government of
Telangana / AP
With Chairman of the Bank as Chairman of the Board.
Board Meeting Rules stipulate that the Board meets minimum
six times a year, at least once in a quarter. Minimum quorum
for the Board Meeting to transact business is four directors
and no meeting was adjourned for want of quorum.
*The term of Govt of India nominee directors have completed
during the year and Proposals sent to Govt of India through
NABARD/SBI for fresh appointment of directors. Govt of India
yet to appoint the directors, presently these two posts are
vacant.
During the intervening period of two Board Meetings, as and
when warranted, the Board has transacted the business by
means of Circulation of 18 agenda notes during the year,
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51
For and on behalf of Board of Directors of Andhra Pradesh Grameena Vikas Bank
(V. Narasi Reddy)Chairman
Acknowledgements
The Board of Directors of the Bank would like to express their
sincere gratitude for the continued trust and patronage
received from the customers who have stood with the Bank all
through. The feedback received from customers by way of
suggestions / complaints/ interactions during the meetings on
the service element have helped the Bank to take corrective
measures and new initiatives to improve our efficiency levels.
The Board takes immense pleasure in expressing their
gratitude for the guidance and cooperation received from the
Sponsor Bank, Government of India, both the state
Governments Telangana and Andhra Pradesh, Reserve Bank of
India, NABARD, other Financial Institutions and Banks for their
unflinching and valuable support to the Bank from time to
time.
Further, the Board would like to convey its gratitude to
Shri Hardayal Prasad, Chief General Manager, Shri Giridhara
Kini, General Manager (Network‐I), Shri Ravindra Pandey
General Manager (Network‐II); Shri U.N.N.Maiya , General
Manager (Network‐III), State Bank of India LHO Hyderabad
Shri S. Ganesan, DGM (RRBs & LLB), SBI, CC, Mumbai, Shri P.
Venkata Rao, AGM (RRBs), SBI, LHO, Hyderabad. They shared
their knowledge, their ideas, and numerous tips all of which
were extremely useful in taking this Bank forward. The Bank is
indebted to these executives for their constant handholding.
We will be failing in our duty if we do not acknowledge the
help extended by NABARD and State Bank of India, Local Head
Office, Hyderabad in sparing their Officers to be members of
the Selection Committees constituted for promotions.
The Board conveys its gratitude to Shri R.Subramanian,
Regional Director, Reserve Bank of India, Hyderabad; Smt.
Reeny Ajith, Banking Ombudsman, RBI, Hyderabad for their
support.
The Board also acknowledges the great support and
affectionate guidance from Shri Dr. P.Radhakrishnan and Shri
V.V.V.Sathyanarayana, Chief General Managers, National Bank
for Agriculture and Rural Development (Telangana & A.P)
Hyderabad, and their team of General Managers Shri P.N.
Satya Prasad and Shri D.Nageswar Rao.
The Board also expresses sincere thanks to all the District
Collectors, Project Directors of DRDA, IKP, DWMA, SC/ST/BC
Minorities and Housing Corporations of all the districts in
Telangana and Andhra Pradesh where our Bank is operating,
for their support and encouragement.
The Board would like to gratefully acknowledge the support
rendered by our Technology Service Providers viz., M/s C‐
Edge Technologies, Mumbai, M/s Irix Technologies and M/s
National Payments Corporation of India.
Apart from our customers, the support received from the
Government Departments / Institutions of both Telangana
and Andhra Pradesh states was immense and augmented our
resources. The Board wishes to thank Pollution Control
Boards, Sthree Nidhi credit co‐op federation ltd, Markfed,
Industrial Development Corporations, endowments
departments of both Telangana and A.P States for their
patronage. We also place on record our sincere thanks to A.P
state co‐op Bank ltd(APCOB), Sri Konda Laxman Telangana
state Horticultural University, Advocates Mutually Aided co‐
op socity, Hyderabad and all other departments/Institutions
for their remarkable patronage.
The Board extends its heartfelt gratitude to M/s Bhaskar Rao
& Co, the Central Statutory Auditors of the Bank and other
Statutory Branch Auditors for their cooperation in completing
the Audit of the Bank's Financial Year 2016‐17 in time.
The Board also expresses its gratitude to all Public Relations
Officers, Press and media for their cooperation in giving wide
publicity for the Bank. The Board also thanks the Officers
Association, Employees Union and SC/ST/OBC Welfare
Associations for their constructive role played in overall
development of the Bank.
Words are not adequate to recall the excellent performance,
sense of involvement, ownership and dedicated services
rendered by each and every staff member in achieving the
sustained business growth and profit and surpassing all the
targets set out for the year under MoU with our sponsor bank.
Amazing work by the individuals is always valued and kept on
record.
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52
Balance Sheet
Profit & Loss A/c
Schedules
Notes to Accounts
Performance in Figures
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53
INDEPENDENT AUDITORS' REPORT
M Bhaskara Rao & Co.Chartered AccountantsTo
The ShareholdersAndhra Pradesh Grameena Vikas BankReport on the Financial Statements
1. We have audited the accompanying financial statements of Andhra Pradesh Grameena Vikas Bank (”the Bank”) as at
the March 31, 2017, which comprises the Balance sheet as at March 31, 2017, and profit and Loss Account and the cash
flow statement for the year then ended, and a summary of significant accoun�ng policies and other explanatory
informa�on. Incorporated in these financial Statements are the returns of:
I. The Head Office, 21 Branches audited by us;
ii. 348 Branches audited by Other Auditors.
2. 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 Na�onal Bank for Agriculture and Rural Development (NABARD). Also
incorporated in the Balance Sheet and the profit and Loss Account are the returns from 400 branches (including other
accoun�ng units) which have not been subjected to audit. These unaudited branches account for 24.98% of advances,
32.78% of deposits,18.05% of interest income and 23.99%. of interest expenses.
Management’s Responsibility for the Financial Statements
3. The Bank’s Board of Directors is responsible for prepara�on of these financial statements that give a true and fair view of
the financial posi�on, financial performance and cash flows of Bank in accordance with the applicable provisions of
Regional Rural Bank Act, 1976, Banking Regula�ons Act, 1949, applicable guidelines of Reserve Bank of India (RBI) /
NABARD accoun�ng principles generally accepted in India, including the Accoun�ng Standards issued by Ins�tute of
Chartered Accountants of India (ICAI). This responsibility of management includes the design, implementa�on and
maintenance of internal controls and risk management systems relevant to the prepara�on of the financial statements
that are free from material misstatement, whether due to fraud or error. In making those risk assessments, the
management has implemented such internal controls that are relevant to the prepara�on of the financial statements
and designed procedures that are appropriate in the circumstances so that the internal control with regard to all the
ac�vi�es of the Bank is effec�ve.
Auditor’s Responsibility
4. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Standards on Audi�ng issued by the ins�tute 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.
5. 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 risks assessments,
the auditor considers internal control relevant to the bank’s prepara�on and fair presenta�on of the financial
statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of
expressing an opinion on the effec�veness of the en�ty’s internal control. An audit also includes evalua�ng the
appropriateness of accoun�ng policies used and the reasonableness of the accoun�ng es�mates made by
management, as well as evalua�ng the overall presenta�on of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
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54
opinion.
Opinion:
7. In our opinion as shown by books of the Bank and to the best of our informa�on and according to the explana�ons given
to us:
i. The Balance Sheet, read with the significant accoun�ng policies and the notes thereon is a full and fair Balance
Sheet containing all the necessary par�culars, is properly drawn up so as to exhibit a true and fair view of state of affairs
of the Bank as at 31st March 2017 in conformity with accoun�ng principles generally accepted in India;
ii. The Profit and Loss Account, read with the significant accoun�ng policies and the notes thereon shows a true
balance of profit in conformity with accoun�ng 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
8. We draw a�en�on to the following Notes to the Financial Statements :
Schedule 18(II) (9) regarding disputes with income tax departments over the tax demands raised by the income tax
department. For the reasons stated there in the impact, if any, on the financial statements will be recognised in the year
of se�lement of such disputes
Report on Other Legal and Regulatory Requirements
9. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respec�vely of the Third
Schedule to the Banking Regula�on Act, 1949.
10. Subject to the limita�ons of the audit indicated in paragraph 1 to 5 above and subject to the limita�ons of disclosure
required therein, we report that:
a. We have obtained all the informa�on and explana�ons which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found them to be sa�sfactory.
b. The transac�ons of the Bank, which have come to our no�ce, 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.
d. The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of
account and the Returns.
e. In our opinion, proper books of account as required by Law have been kept by the Bank, so far as appears from our
examina�on of those books
f. The Reports on the financial statement of the Branches audited by the Branch Auditors have been dealt with in
preparing our Report in the manner considered necessary by us.
11. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable
accoun�ng standards.
For M Bhaskara Rao & Co.Chartered Accountants
Firm Registration Number: 000 459 s
V K MuralidharMembership Number: 201570
Hyderabad, April 27, 2017
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55
Place: Ramachandrapuram, Medak DistDate: 27th April 2017
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
For Andhra Pradesh Grameena Vikas Bank
(Rs in '000s)stBalance Sheet As At 31 March 2017
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)Partner General Manager‐III ChairmanMembership No : 201570Firm Registration No : 000459s
(M.S. Hari Shankar) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director
(V.S. Gupta) (Ms. K. Amrapali, IAS) (Smt. K. Sunitha IAS)Director Director Director
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Particulars Sch. As on 31.03.2017 As on 31.03.2016
CAPITAL AND LIABILITIES
Capital 1 94 08 50 94 08 50
Reserves & Surplus 2 1655 72 37 1303 73 25
Deposits 3 12818 57 62 10202 11 53
Borrowings 4 5620 84 13 3733 79 81
Other Liabilites & Provisions 5 857 92 53 839 60 79
Total 21047 15 15 16173 33 88
ASSETS
Cash and balances with RBI 6 730 55 43 514 84 18
Balances with Banks and Money at Call & Short Notice 7 4057 12 69 2850 65 79
Investments 8 4433 07 29 2358 46 79
Advances 9 10926 36 75 9862 43 63
Fixed Assets 10 57 17 70 55 61 20
Other Assets 11 842 85 29 531 32 29
Total 21047 15 15 16173 33 88
Contingent Liabilities 12 33 37 92 35 99 36
56
st Profit & Loss for the year ended 31 March 2017 (Rs in '000)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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Particulars Sch. 2016‐17 2015‐16
1 Interest Earned 13 1760 87 26 1484 69 50
a Interest/Discount on Advances/bills 1309 92 51 1104 72 89
b Interest on Investments 250 49 50 171 42 99
c Interest on Balances with RBI And Other Inter Bank Funds Nill Nill
d Interest Otheres 200 45 25 208 53 62
2 Other Income 14 197 19 14 161 47 41
a Commission, Exchange and Brokerage 141 14 99 125 63 65
b Miscellaneous Income 56 04 15 35 83 76
3 TOTAL 1958 06 40 1646 16 91
4 Interest Expended 15 1108 93 87 968 51 82
5 Operating Expenses (a+b) 16 297 46 64 336 76 55
a Employees Costs 199 66 43 229 17 86
b Other Operating Expenses 97 80 21 107 58 69
6 "Total Expenditure (excluding provisions and Contingencies) ( 4+5)" 1406 40 51 1305 28 37
7 Operating Profit before provisions and Contingencies (3‐6) 551 65 89 340 88 54
8 Provisions (other than tax) and Contingencies 28 96 06 ‐34 70
9 Profit/Loss from Ordinary Activities before Tax (7‐8) 522 69 83 341 23 24
10 Tax Expense
a Provision for Taxation–Current Year ‐169 06 00 ‐107 61 57
b Deferred Tax ‐1 45 78 ‐1 32 77
c Earlier Years Adjustments ‐18 93 ‐8 81 83
11 Net profit/Loss for the period from Ordinary Activities after Tax 351 99 12 223 47 07
12. Extraordinary Items Nil Nil
13. Net profit/Loss for the period 351 99 12 223 47 07
57
(Rs in '000s)
Place: Ramachandrapuram, Medak DistDate: 27th April 2017
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
For Andhra Pradesh Grameena Vikas Bank
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)Partner General Manager‐III ChairmanMembership No : 201570Firm Registration No : 000459s
(M.S. Hari Shankar) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director
(V.S. Gupta) (Ms. K. Amrapali, IAS) (Smt. K. Sunitha IAS)Director Director Director
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APPROPRIATIONS
Net Profit/Loss for the period 351 99 12 223 47 07
Brought forward Profit 1027 32 54 848 54 88
Transfer to the Statutory Reserves 70 39 82 44 69 41
Special Reserve U/s 36(1)(viii) of IT Act, 1961 3 84 66 0
Profit(+)/Loss(‐) Carried Over to Balance Sheet 1305 07 18 1027 32 54
Summary of Significant Accounting Policies 17
Disclosures and Notes to Accounts 18
Particulars Sch. 2016‐17 2015‐16
58
SCHEDULE – 1 CAPITAL
st Schedules forming Part of Balance Sheet As on 31 March 2017
(Rs in '000)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
Authorised Capital 2000,00,00 2000,00,00
(200,00,00,000 Equity Shares of Rs.10/‐each)
Issued Capital 94,08,50 94,08,50
(9,40,85,049 Equity Shares of Rs.10/‐each)
Subscribed Capital 94,08,50 94,08,50
(9,40,85,049 Equity Shares of Rs.10/‐each)
Called up Capital 94,08,50 94,08,50
(9,40,85,049 Equity Shares of Rs.10/‐each)
Less: Calls Un Paid NIL NIL
Add: Forfeited Shares NIL Nil
TOTAl 94,08,50 94,08,50
59
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2017
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SCHEDULE – 2 - RESERVES AND SURPLUS(Rs in '000s)
Particulars As on 31.03.2017 As on 31.03.2016
I. Statutory Reserve
i. Opening Balance 262,08,02 217,38,61
ii. Additions during the Year 70,39,82 44,69,41
iii. Deductions During the year Nil Nil
TOTAL 332,47,84 262,08,02
II. Capital Reserve
i. Opening Balance 1,20 1,20
ii. Additions during the Year Nil Nil
iii. Deductions During the year Nil Nil
TOTAL 1,20 1,20
III. Share Premium
i. Opening Balance NIL NIL
ii. Additions during the Year NIL NIL
iii. Deductions During the year Nil Nil
TOTAL 0 0
IV. Special Reserve U/s 36(1)(Viii) of Income Tax Act.1961
i. Opening Balance Nil Nil
ii. Additions during the Year 3,84,66 Nil
iii. Deductions During the year Nil Nil
TOTAL 3,84,66 Nil
V. Revenue and Other Reserves
i. Opening Balance 14,31,49 14,31,49
ii. Additions during the Year Nil Nil
iii. Deductions During the year Nil Nil
TOTAL 14,31,49 14,31,49
VI Balance in Profit and Loss Account
I Opening Balance 10273254 8485488
II Additional during the Year 2777464 1787766
Total 13050718 1027 32 54
Grand Total 1655 72 37 1303 73 25
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SCHEDULE – 3 ‐ DEPOSITS
SCHEDULE – 4 ‐ BORROWINGS
(Rs in '000s)
(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangalst
Schedules forming Part of Balance Sheet As on 31 March 2017
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Particulars As at 31.03.2017 As at 31.03.2016
A. I. Demand Deposits
i) From Banks NIL NIL
ii) From Others 126 87 53 59 34 38
II. Savings Bank Deposits 5134 62 68 3674 42 36
III. Term Deposits
i) From Banks NIL NIL
ii) From Others 7557 07 41 6468 34 79
TOTAL 12818 57 62 10202 11 53
B. i) Deposits of Branches In India 12818 57 62 10202 11 53
ii) Deposits of Branches Out Side India NIL NIL
TOTAL 12818 57 62 10202 11 53
Particulars As at 31.03.2017 As at 31.03.2016
I. Borrowings In India
I) Reserve Bank of India NIL NIL
Ii) Other Banks (SBI) 1894 60 79 1004 60 92
Iii) Other Institutions and Agencies (NABARD & NHB)
a) NABARD 3684 71 42 2648 52 93
b) National Housing Bank (NHB) 41 51 92 80 65 96
II. Borrowings Out Side India NIL NIL
TOTAL 5620 84 13 3733 79 81
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SCHEDULE – 6 ‐ CASH AND BALANCE WITH RESERVE BANK OF INDIA (Rs in '000s)
SCHEDULE – 5 OTHER LIABILITIES AND PROVISIONS
(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
I) Bills payable/Bankers Cheque 86 85 97 78 47 78
II) Inter Office Adjustments (Net) 3 90 01 7 33 14
III) Interest Accrued on Deposits 480 10 46 522 73 89
IV) Interest payables 42 45 11 52 05 10
V) General Provisions:
i. Provision on Standard Assets 34 26 25 29 26 11
ii. Provision on Rural Advances 10 67 36 10 67 36
iii. Provision on Frauds 91 28 144 52
vi. Audit Fee Provisions 40 00 76 00
v. Income Tax Provision 169 06 00 107 61 57
vi. Bonus Provision 38 50 66 00
VI) TDS on Bank Term Deposits 8 43 50 11 24 87
VII) Deferred Tax 2 68 67 1 22 88
VIII) Other Liabilities 17 79 42 16 11 57
TOTAL 857 92 53 839 60 79
TOTAL 839,60,79 936,39,38
Particulars As at 31.03.2017 As at 31.03.2016
I. Cash in Hand
(Including Foreign Currency Notes) 185 07 22 84 37 56
II. Balances With Reserve Bank of India
i) In Current Accounts 545 48 21 430 46 62
ii) In Other Accounts NIL NIL
TOTAL 730 55 43 514 84 18
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SCHEDULE – 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
I In India
i Balance with Banks
a) In Current Accounts 3 75 05 13 04 79
b) In Other Deposit Accounts (TDRs) 4053 37 64 2837 61 00
ii Money at Call & Short Notice
a) With Banks Nil Nil
b) With Other Institutions Nil Nil
TOTAL 4057 12 69 2850 65 79
II Outside India
i) In Current Accounts Nil Nil
ii) In Other Deposit Accounts Nil Nil
iii) Money at Call & Short notice Nil Nil
TOTAL Nil Nil
GRAND TOTAL (I&II) 4057 12 69 2850 65 79
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SCHEDULE – 8 - INVESTMENTS(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
I Investment in India
i Government Securities 4343 24 77 2288 64 27
ii Other Approved Securities Nil Nil
iii Shares Nil Nil
iv Debentures and Bonds Nil Nil
v Subsidaries and /or joint Ventures Nil Nil
vi Investment in Equity shares of National
Payment Corporation of India (Long Term) 24 99 24 99
vii Others 89 57 53 69 57 53
TOTAL 4433 07 29 2358 46 79
II Investments Out Side India
I Government Securities Nil Nil
(Including Local Authorities) Nil Nil
ii Subsidiaries and/or Joint Ventures Nil Nil
iii Other Investments (To Be Specified) Nil Nil
TOTAL Nil Nil
GRAND TOTAL (I&II) 4433 07 29 2358 46 79
64
SCHEDULE – 9 - ADVANCES (Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
A 1 Bills Purchased and Discounted Nil Nil
2 Cash Credits, Overdrafts and Loans
Repayable on Demand" 8304 24 21 7512 98 01
3 Term Loans 2622 12 54 2349 45 62
TOTAL (A) 10926 36 75 9862 43 63
B 1 Secured by Tangible Assets 10891 4977 9830 09 30
2 Covered by Bank/Government Guarantees Nil Nil
3 Unsecured 34 86 98 32 34 33
TOTAL (B) 10926 36 75 9862 43 63
C I Advances in India
1 Priority Sector 9573 4361 8498 44 96
2 Public Sector Nil Nil
3 Banks Nil Nil
4 Others 1352 93 14 1363 98 67
TOTAL (CI) 10926 36 75 9862 43 63
C II Advances Out Side India
1 Due from banks Nil Nil
2 Due from Others Nil Nil
TOTAL (CII) Nil Nil
GRAND TOTAL(CI+CII) 10926 36 75 9862 43 63
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SCHEDULE – 10 - FIXED ASSETS (Rs in '000)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
I. Land
At cost as on the 31st March of the Preceeding Year 9 57 9 57
Additions During the Year Nil Nil
Deductions During the Year Nil Nil
TOTAL 9 57 9 57
II Buildings
At cost as on the 31st March of the Preceeding Year 14 00 14 00
Additions During the Year Nil Nil
Deductions During the Year Nil Nil
TOTAL 14 00 14 00
III Other Fixed Assets
(including Furniture and Fixtures)
At cost as on the 31st March of the Preceeding Year 103 00 38 90 37 32
Additions During the Year 9 51 00 12 79 54
Deductions During the Year 2 38 16 47
Depreciation to date 61 05 64 51 48 79
TOTAL 51 43 36 51 51 60
IV Capital Work in Progress
At cost as on the 31st March of the Preceeding Year 3 86 03 2 30 03
Additions During the Year 1 64 74 1 56 00
Deductions During the Year Nil Nil
TOTAL 5 50 77 3 86 03
GRAND TOTAL (I+II+III+IV) 57 17 70 55 61 20
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SCHEDULE – 11 - OTHER ASSETS
(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
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Particulars As at 31.03.2017 As at 31.03.2016
1. Inter Office Adjustments (Net) Nil Nil
2. Interest Acrued 186 53 11 139 86 12
3. Advance Tax Paid 145 00 00 89 00 00
4. Tax Deducted at Source 5 28 95 5 36 92
5. Stationery 36 83 29 73
6. Telephone deposit 3 85 3 97
7. Suspense Nil Nil
8. Subvention receivable from NABARD 289 71 00 262 12 22
9. Interest Incentive receivable from NABARD 162 66 08 Nil
10. Prepaid Expenses 94 59 76 12
11. Income Tax paid under protest against Disputed Demand 34 74 65 23 27 78
12. Others 17 56 23 10 59 43
TOTAL 842 85 29 531 32 29
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SCHEDULE – 13 - INTEREST EARNED
SCHEDULE – 12 - CONTINGENT LIABILITIES(Rs in '000s)
(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
ParticularsYear Ended31.03.2017
(Current Year)
Year Ended31.03.2016
(Previous Year)
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Particulars As at 31.03.2017 As at 31.03.2016
Claims against the Banks not acknowledged as debts 18 14 00 18 14 00
Liabilities for partly paid Investments Nil Nil
Liabilities on account of outstanding forward exchange contracts Nil Nil
Guarantees Given on behalf of Constituents
a) In India 10 58 91 10 13 42
b) Out Side India Nil Nil
Acceptances, Endorsements and other Obligations Nil Nil
"Other items for which the Bank is contingetly liable
(DEAF Account)" 1 33 66 1 34 75
Unclaimed Bankers Cheques treated as income 3 31 35 6 37 19
TOTAL 33 37 92 35 99 36
Interest/ Discount on Advances/Bills 13099251 11047289
Interset on Investments 250 49 50 171 42 99
Interest on Balances with RBI and Other Inter Bank Funds Nil Nil
Others 200 45 25 208 53 62
TOTAL 1760 87 26 1484 69 50
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SCHEDULE – 14 - OTHER INCOME
SCHEDULE – 15 - INTEREST EXPENDED
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
(Rs in '000s)
ParticularsYear Ended31.03.2017
(Current Year)
Year Ended31.03.2016
(Previous Year)
(Rs in '000s)
ParticularsYear Ended31.03.2017
(Current Year)
Year Ended31.03.2016
(Previous Year)
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Commission,Eexchange and Brokerage 141 14 99 125 63 65
Profit on Sale of Investment 49 60 43 29 16 88
Profit on Revaluation of Investments Nil Nil
Profit on Sale of Lands, Buildings and Other Assets Nil Nil
Profit on Exchange Transactions Nil Nil
Income Earned by way of Dividend Etc, From Subsidiaries/
Companies and /Or Joint Ventures Abroad /In India Nil Nil
Miscellaneous Income 6 43 72 6 66 88
TOTAL 197 19 14 161 47 41
Interest on Deposits 796 31 82 694 60 94
Interest on Reserve bank of India/Inter Bank Borrowings 312 62 05 273 90 88
Others Nil Nil
TOTAL 1108 93 87 968 51 82
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SCHEDULE – 16 - OPERATING EXPENSES(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
ParticularsYear Ended31.03.2017
(Current Year)
Year Ended31.03.2016
(Previous Year)
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Salary Payments and Provisions to Employees 199 66 43 229 17 86
Gratuity Contribution 4 39 06 18 99 31
Leave Encashment 1 68 97 6 54 18
Medical Expenses 6 53 71 2 11 13
Leave Fare Concession 7 49 18 57
Rent, Taxes,Lighting and Fuel 17 55 53 15 52 81
Printing and Stationery 2 82 24 3 35 21
Advertisement and Publicity 8 47 6 30
Director's Fee,Allowanes and Expenses 12 14
Depreciation on Banks Property 9 56 85 9 25 25
Auditors Fee and Expenses 39 74 70 39
Legal Charges 15 24 15 52
Telephones Charges 1 39 02 1 23 48
Repairs and Maintenance 21 19 23 92
Insurance 11 86 88 10 14 75
Travelling and Halting expenses 4 97 59 5 19 38
AMC for Software and Hardware 12 61 76 12 85 77
Books and Periodicals 84 78 83 40
Computerization 58 65 45 14
Vehicle and Fuel 3 43 50 2 94 16
Entertainment 75 83 77 85
Other Expenses 17 83 59 16 02 03
TOTAL 297 46 64 336 76 55
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SCHEDULE – 17 - SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation:
The Bank's financial statements are prepared under the historical cost convention, on the accrual basis of accounting
ongoing concern basis, unless otherwise stated and conform in all material aspects to Generally Accepted Accounting
Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms / guidelines prescribed by
the National Bank for Agriculture and Rural Development (NABARD) / Reserve Bank Of India (RBI), Banking Regulation
Act 1949, Regional Rural Bank Act, 1976 and amendments thereto and Accounting Standards issued by the Institute of
Chartered Accountants of India (ICAI), and the practices prevalent in the banking industry in India.
2. Use of estimates:
The preparation of financial statements requires the management to make estimates and assumptions considered in
the reported amount of assets and liabilities (including contingent liabilities) as on the date of 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 and are based upon management's evaluation of
the relevant facts and circumstances as of the date of financial statements. Future results could differ from to these
estimates and the differences between the actual results and the estimates are recognised in the period in which the
result are known / materialised.
3. Revenue Recognition:
a) Income and Expenditure are accounted on accrual basis, except otherwise stated.
b) Interest income is recognised in the Profit and Loss Account as it accrues except, income from Non Performing
Assets (NPAs), comprising of advances and investments which is recognised upon realisation, as per the
prudential norms prescribed by the RBI or other regulatory authorities.
c) Profit / loss on sale of investments is recognised in the Profit and Loss Account.
d) Income (other than interest) on interest bearing investments in "Held to Maturity (HTM)" category acquired at a
discount to the face value, is recognised only at the time of sale / redemption.
e) Commission & Exchange and Locker rent have been recognized on realization basis.
f) Interest on overdue term deposits is accounted for on renewal.
g) In case of suit filed accounts, legal and other expenses incurred are charged to Profit and Loss Account and at
the time of recovery of such expenses is accounted as income.
4. Investments:
The transactions in Government Securities are recorded on “Settlement Date”. Investments other than Government
Securities are recorded on “Trade Date”.
a) Investments are classified into three categories viz., Held to Maturity (HTM), Available for Sale (AFS) and Held
for Trading (HFT) as per RBI guidelines.
∙ Investments that the Bank intends to hold till maturity are classified as Held to Maturity (HTM).
∙ Investments that are held principally for resale within 90days from the date of purchase are classified as Held for
Trading (HFT)
∙ Investments, which are not classified in the above two categories, are classified as Available for Sale (AFS).
An investment is classified as HTM / HFT / AFS at the time of its purchase and subsequent shifting amongst categories is
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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71
done in conformity with regulatory guidelines.
However, for disclosure in Balance Sheet these are classified as under ‐ Government Securities, Other Approved
Securities and Others.
b) The Securities in each classification are valued in accordance with RBI guidelines as detailed hereunder:
∙ In determining the acquisition cost of an investment:
∙ Brokerage or Commission received on subscriptions is reduced from the cost.
∙ Broking period interest paid / received on debt instruments is treated as interest expense / income and is
excluded from cost or sale consideration.
∙ Cost is determined on the weighted average cost method for investments under AFS and HFT category and FIFO
basis (First in First out) for investments under HTM category
∙ Transfer of securities from HFT / AFS category to HTM category 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.
However, transfer of securities from HTM category to AFS category is carried out on at acquisition price / book
value. After transfer, these securities are immediately re‐valued and resultant depreciation, if any, is provided
∙ Investments under Held to Maturity category are carried at acquisition cost unless it is more than the face
value, in which case the premium is amortised over the period of remaining maturity on constant yield basis.
Such amortisation of premium is adjusted against income under the head “Interest on Investments”.
∙ Investments in equity shares of other companies are valued at historical cost. A provision is made for
diminution, other than temporary, for each investment individually.
∙ Investments under AFS and HFT category are individually re‐valued at market price or fair value determined as
per regulatory guidelines, and only the net depreciation of each group for each category (viz., (i) Government
securities (ii) Other Approved Securities) is provided for and net appreciation is ignored. On provision for
depreciation, the book value of individual security remains unchanged after marking to market.
∙ Investments are classified as Performing and Non Peforming, based on the guidelines issued by the RBI.
Investments of domestic offices become non performing where:
∙ Interest or instalment (including maturity proceeds) is due and remains unpaid for more than 90 days.
∙ In the case of equity shares, in the event the investment in the shares of any company is valued at Rs. 1/‐ per
company on account of the non availability of the latest balance sheet, those equity shares will be reckoned as
NPI.
5. Loans or Advances and Provisions thereon:
Loans and advances are classified as performing and non‐performing, based on the guidelines/ directives issued by
the RBI. Loan assets become Non Performing Asset (NPA) where:
∙ In respect of agriculture advances:
i. For short duration crops, where the instalment of principal or interest remains overdue for two crop seasons
and
ii. For long duration crops, where the principal or interest remains overdue for one crop season.
∙ In respect of Non Agriculture advances:
i. In respect of term loans, interest and / or instalment of principal remains overdue for a period of more
than 90 days.
ii. In respect of Overdraft or Cash Credit Advances, the account remains “out of order”, i.e. if the outstanding
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72
III Doubtful Assets:
A loan asset that has remained in the substandard category for of 12 months is Doubtful Asset
IV Loss Assets:
A loan asset where Loss has been identified but the amount has not been fully written of is a Loss Asset.
100% Provision on outstanding Advances.
∙ Advances are net of specific loan loss provisions, unrealised interest, ECGC claims received and Inter Bank Participation Certificates.
∙ For Restructured / Rescheduled assets, provisions are made in accordance with the extant guidelines issued by the RBI.
∙ In the case of loan accounts classified as NPAs, an account may be reclassified as a performing asset if it confirms to the guidelines prescribed by the regulators.
∙ Amounts recovered against debts written off in earlier years are recognised as revenue in the year of recovery.
∙ In addition to the specific provision on NPAs, general provisions are also made for Standard Assets as per extant RBI guidelines. These provisions are reflected in Schedule 5 of the Balance Sheet under the head “Other Liabilities and Provisions – Other Provisions” and are not considered for arriving at the net NPAs.
∙ Interest realized on NPAs are taken in to income account provided the credits in the accounts towards interest are not out of fresh/additional credit facilities sanctioned to the borrower concerned.
∙ Appropriation of recoveries in NPAs i.e. towards principal or interest due as per the Bank's extant instructions is done in accordance with the following priority.
balance exceeds the sanctioned limit or drawing power continuously for a period 90 days, or if there are no
credits continuously for 90 days as on the date of balance sheet, or if the credits are not adequate to cover
the interest debited during the same period.
Provisions are made for NPAs as per the extant guidelines/directives prescribed by the RBI:
a) All advances have been classified under four categories i.e., Standard Assets, Sub‐standard Assets, Doubtful
Assets and Loss Assets.
b) Provisions on Advances are made as under:
I Standard Assets: General Provision for Standard Assets at the following rates:
Direct Advances to Agriculture and SME sectors at 0.25%
Commercial Real Estate sector at 1%
All other advances not included in (1) & (2) above at 0.40%
II Sub‐Standard Assets:
A loan asset that has remained non performing for a period less than or equal to 12 months is a Sub Standard
Asset
General Provision of 15% on the total outstanding
Additional Provision of 10% for exposures which are unsecured ab‐intio (i.e. where realisable value of security
is not more than 10% ab‐initio).
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Secured Portion Up to One year 25%
One to three years 40%
More than three years 100%
Unsecured Portion 100%
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8. Impairment of Assets:
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 the asset. If such assets are impaired, the impairment to be recognised is measured by the amount which the carrying amount of the asset exceeds the fair value of the asset.
9. Employee Benefits:
a. Short Term Employee Benefits:
The undiscounted amount of short – term employee benefits, such as medical benefits etc., which are expected to be paid for the services rendered by employees, are recognized during the period when the employee renders the service.
b. Long Term Employee Benefits
i. Defined Benefit Plans:
a. Charges
b. Unrealized Interest/Interest
c. Principal
6. Floating Provisions:
The bank has a policy for creation and utilisation of floating provisions separately for advances, investments and general purpose. The quantum of floating provisions to be created is assessed at the end of each financial year.
7. Fixed Assets, Depreciation and Amortisation:
Fixed Assets are carried at historical cost less accumulated depreciation/amortisation.
Cost includes cost of purchase and all expenditure directly attributable to or incur in connection with acquiring the said asset before it is put to use. Subsequent expenditure incurred on the assets put to use are capitalised only when it increases the future benefits from such assets or their functioning capability.
Depreciation / amortisation is provided on straight line method as per the rates stated below.
∙ In respect of assets acquired during the year (for domestic operations), depreciation is charged on proportionate
basis for the number of days the assets have been put to use during the year.
∙ Assets costing less than Rs. 5,000 each are charged off in the year of purchase.
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Description of Fixed Asset Depreciation / amortization rates
Furniture & Fixtures other than Electrical Fittings and Fixtures 10%
Electrical Fittings with 3 years life 33.33%
Electrical Fittings with 5 years life 20%
Safe Deposit Lockers, Fire proof data safe 5%
Computer systems & ATMs 33.33%
Computer software which does not form an integral part of computer hard ware and cost of software development 100%
Motor vehicles 10%
74
a. Gratuity: For all the eligible employees, the Bank provides for Gratuity liability based on actuarial valuation. The Bank makes periodic contributions to a fund administered by Trustees based on an independent external actuarial valuation carried out annually.
b. Leave Encashment: For all the employees who have completed five years of service, the Bank provides for Leave Encashment liability based on actuarial valuation and contributes to SBI Life Insurance Company Limited on annual basis.
The cost of providing defined benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains/losses are immediately recognised in the Profit and Loss Account and are not deferred.
ii. Defined Contribution Plans such as Provident Fund are recognized as an expense and charged to the Profit & Loss Account on accrual basis.
10. Income Tax Expense:
Income Tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Bank. Current taxes expense and deferred tax expense are determined in accordance with the provisions of the Income Tax Act, 1961 and as per the Accounting standard 22 – Accounting for Taxes on Income respectively and tax laws prevailing in India. Deferred tax adjustments comprise of changes in the deferred tax assets or liabilities during the period.
Deferred tax assets and liabilities are recognised by considering the impact of the timing differences between taxable income and accounting income for the current year, and carry forward losses. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date. The impact of changes in Deferred tax assets and liabilities is recognised in the Profit and Loss Account. Deferred tax assets are recognised and reassessed at each reporting date, based on management's judgement as to whether their realisation is considered as reasonably / virtually certain.
11. Contingent Liabilities & provisions:
In conformity with AS – 29 “Provisions, Contingent Liabilities and Contingent Assets”, issued by ICAI, the bank recognises the provisions only when it has a present obligation as a result of a past event and would result in a probable 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.
No provision is recognised for:
I. Any possible obligation that arises from past events and 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.
II. Any present obligation that arises from past events but is not recognised 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 obligation 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 recognised in the financial statements.
12. Special Reserves:
Revenue and other Reserve include Special Reserve created under Section 36(i)(viii) of the Income Tax Act, 1961. The Board of Directors of the Bank have passed a resolution approving creation of the reserve and confirming that it has no intention to make withdrawal from the Special Reserve.
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SCHEDULE – 18
DISCLOSURES & NOTES TO ACCOUNTS
I. Disclosures as per norms for RRBs
1. CAPITAL
2.�INVESTMENTSS.No Particulars Current year Previous year
1 Value of Investments
i) Gross value of Investments 44330729 23584679
ii) Provisions for Diminution 0 0
iii) Net value of Investments 44330729 23584679
2 Movement of provisions held towards depreciation on investments
i) Opening Balance Nil Nil
ii) Add: Provisions made during the year Nil Nil
iii) Less: Write off / Write back of excess provisions during the year Nil Nil
iv) Closing Balance Nil NIL
3. REPO TRANSACTIONS
Minimum Maximum Daily Average As onst outstanding outstanding outstanding 31
during the during the during the March, year year year 2017
Securities Sold under Repos Nil Nil Nil Nil
Securities purchased under Nil Nil Nil Nil Reverse Repos
Item
(Rs in '000s)
(Rs in '000s)
The Bank has invested a sum of Rs.24,99,200/- in National Payments Corporation of India (NPCI), a company
promoted by ten banks under the guidance of Indian Bank's Association.
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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Sl.No Particulars Current year (%) Mar 2017 Previous year (%) Mar 2016
I) CRAR(%) 14.05 13.48
ii) CRAR – Tier I Capital (%) 13.70 13.11
iii) CRAR – Tier II Capital (%) 0.35 0.37
iv) Percentage of Shareholding of the :
A Government of India 50 50.00
B Government of Andhra Pradesh 15 15.00
C State Bank of India (Sponsor Bank) 35 35.00
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4. Non-SLR Investment Portfolio
i) Issuer composition of Non SLR Investments
(ii) Non-Performing Non-SLR Investments
Particulars Amount
Opening balance NIL
Additions during the year since 1st April NIL
Reductions during the above period NIL
Closing Balance NIL
Total provisions held NIL
(Rs in '000s)
(Rs in '000s)
5. Asset Quality
No. Particulars Current year (2016-17) Previous year (2015-16)
I Net NPAs to Net Advances (%) 0.72 1.40ii Movement of NPAs (Gross) a) Opening balance 2519983 2990302b) Additions during the year 1235898 794833c) Reductions during the year 1658485 1265152(d) Closing balance 2097396 2519983iii Movement of Net NPAs a) Opening balance 1476671 2224258b) Additions during the year 0 58053c) Reductions during the year 600917 805640d) Closing balance 875754 1476671iv Movement of provisions for NPAs (Excluding provisions on standard assets) a) Opening balance 1043312 766044b) Provisions made during the year 244915 303445c) Write‐off / Write‐back of excess provisions 66585 26177d) Closing balance 1221642 1043312
I. Non-Performing Assets (Rs in '000s)
S. No Issuer Amount Extent of Extent of Extent of Extent of Private below investment unrated unlisted placement grade securities securities securities 1 2 3 4 5 6 7
i) PSUs NIL NIL NIL NIL NIL
ii) FIs NIL NIL NIL NIL NIL
iii) Banks NIL NIL NIL NIL NIL
iv) Private NIL NIL NIL NIL NIL Corporates
v) Others (MF)
& Equity shares of
NPCI 898252 NIL NIL NIL NIL
vi) Provisions held towards NIL NIL NIL NIL NIL depreciation
Total 898252 NIL NIL NIL NIL
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ii. Details of Loan Assets subject to Restructuring
II. Details of financial assets sold to Securitization (SC) / Reconstruction Company (RC) for Assets Reconstruction
S.No 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
III. Details on non‐performing financial assets purchased / sold
A. Details of non‐performing financial assets purchased:
S.No 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 account restructured during the year NIL NIL
(b) Aggregate outstanding NIL NIL
B. Details of non-performing financial assets sold :
S.No. Particulars Current year Previous year
1 No. of accounts sold NIL NIL
2 Aggregate outstanding NIL NIL
3 Aggregate consideration received NIL NIL
(Rs in '000s)
(Rs in '000s)
(Rs in '000s)
(Rs in '000s)
S.No Particulars Current year Previous year
i Total amount of loan assets subject to restructuring,
rescheduling, renegotiation NIL NIL
ii The amount of Standard assets subjected to restructuring,
rescheduling, renegotiation NIL NIL
iii The amount of Sub‐Standard assets subjected to restructuring,
rescheduling, renegotiation NIL NIL
iv The amount of Doubtful assets subjected to restructuring,
rescheduling, renegotiation NIL NIL
(i) = (ii) + (iii) + (iv) NIL NIL
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IV. Provisions on Standard Assets
S.No. Particulars Current year Previous year
1 Provisions towards Standard Assets 342625 292611
6. Business Ratios
S.No Particulars Current year Previous year
I Interest income as a percentage to Working Funds 9.11 9.35
ii Non‐Interest income as a percentage to Working Funds 1.02 1.02
iii Operating profit as a percentage to Working Funds (Before provisions) 2.85 2.15iv Returns on Assets (%) 1.82 1.41
v Business per Employee (Dep + Adv)(Rs'000) 84520 70498
vi Net profit per Employee (Rs'000) 1181 757
7. Asset Liability Management – Maturity pattern of certain terms of Assets and Liabilities
Particulars1 to 14
days15 to 28
days
29 days to 3
months
Over 3 months
and upto 6
months
Over 6 months
and upto 1 year
Over 1 year and
upto 3 years
Over 3 year and
upto 5 years
Over 5 years
Total
Deposits 10491458 3366304 11445365 14740523 21272506 61614654 3750464 1504488 128185762
Advances 7749797 49056 501063 767596 7344322 77174008 3534008 12143825 109263675
Investments &
STDRs 300000 5663728 12680584 33780497 20553505 5929108 4226434 1730637 84864493
Borrowings 2011129 1436521 2298433 20068555 6464607 17032813 6896355 56208413
Foreign
Currency AssetsNIL NIL NIL NIL NIL NIL NIL NIL NIL
Foreign
Currency
Liabilities
NIL NIL NIL NIL NIL NIL NIL NIL NIL
(Rs in '000s)
(Rs in '000s)
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NIL
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8.���Exposures���Exposure�to�Real�Estate�Sector
S.No Particulars Current year Previous year
A Direct exposure
I Residential Mortgages above Rs. 20.00 lakhs lending fully secured 1316032 1271188 by mortgages on residential property that is or will be occupied by the borrower or that is rented (individual housing loan upto Rs. 20 lakh may be shown separately)
Up to Rs. 20.00 lakhs 6415337 4238282
ii Commercial Real Estate Lending secured by mortgages on commercial real estates (office buildings, retail space, multi‐purpose commercial premises, multi‐family residential buildings, multi‐tenanted commercial premise, NIL NIL industrial or warehouse space, hotels, land acquisition, development and construction, etc.) Exposure would also include non‐fund based (NFB) limits.
iii Investments in Mortgage Backed Securities (MBS) and other securitized exposures NIL NIL
a. Residential NIL NIL
b. Commercial Real Estate NIL NIL
B Indirect Exposure NIL NIL
Fund‐based and non‐fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs) NIL NIL
9. Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the bank:
The bank had not exceeded the single borrower limit, group borrower limit fixed by the Board
10. Miscellaneous – Amount of provisions made for Income tax during the year.
Particulars Current Year Previous year
Provision for Income Tax 1690600 1076157
11. Disclosure of Penalties imposed by RBI
The Bank has maintained CRR and SLR as per RBI Act 1934 and Banking Regulation Act 1949 and not defaulted
during the financial year under report.
12. Additional Disclosures as per Accounting Standards applicable to the Bank
I Related party disclosure
a) Related parties where control / significant influence exists or with whom transaction have taken place during
the year.
Sponsor Bank their Subsidiaries and Associates:State Bank of India
(Rs in '000s)
(Rs in '000s)
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For the year For the year st st ended 31 ended 31
March 2017 March 2016
Refinance received from State Bank of India Nil Nil
Interest paid to SBI 81,65,40 43,43,63
Investments made with:
SBI ‐ in the form of STDRs 34,83,95,00 21,88,95,00
SBI Fund Management Private Limited 49,57,53 69,57,53
Interest received from SBI 1,98,36,68 2,08,53,62
Profit on sale of Investments on SBI 10,98,93 19,03,09
Contributions to Gratuity Fund with SBI Life Insurance Company Limited 7,32,69 18,99,31
Contributions to Group Leave Encashment Policy with SBI Life Insurance Company Limited 3,06,29 6,54,18
Current Account Balance with SBI 9,66 65,43
(iii) Particulars of Managerial Remuneration:
Key Management Personnel
Shri. V. Narasi Reddy, Chairman
Shri Y.N. Sukumar, General Manager ‐I (upto:23.09.2016)
Shri.M. Satyanarayana, General Manager ‐I (from:23.09.2016)
Shri T.V. Krishna Reddy General Manager‐II
Shri.S.Prakash Kumar General Manager ‐ III
Shri K. Ravi Kiran, General Manager ‐ IV (from:21.09.2016)
(ii) Particulars of related party accounts transactions:
The following is the summary of significant related party transactions:
For the year For the year st st ended 31 ended 31
March 2017 March 2016
Shri.V.Narasi Reddy, Chairman 21,68,711/‐ 18,36,505/‐
Shri.Y.N.Sukumar, General Manager ‐ I 8,27,392/‐ 13,47,516/‐
Shri.M. Satyanaryana, General Manager ‐ I 9,01,288/‐ Nil
Shri.T.V.Krishna Reddy, General Manager ‐ II 16,40,771/‐ 3,42,758/‐
Shri.S. Prakash Kumar, General Manager ‐ III 18,01,154/‐ 13,44,034/‐
Shri K. Ravi Kiran, General Manager ‐ IV 8,71,441/‐ Nil
(Rs in '000s)
(Rs)
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13. Provisions on Rural Advances
14. Disposal of Complaints:
A) Customer Complaints:
S.No Particulars Nos
a No. of complaints pending at the beginning of the year NIl
b No. of complaints received during the year 2016‐17 40
c Total Complaints 40
d No. of complaints redressed during the year 39
e No. of complaints pending at the end of the year 01
B) Award passed by the Banking Ombudsman:
S.No Particulars Nos
a No. of complaints pending at the beginning of the year 01
b No. of complaints received during the year 2016‐17 35
c Total Complaints 36
d No. of complaints redressed during the year 35
e No. of complaints pending at the end of the year 01
f No. of awards passed by Banking Ombudsman Nil
g No of awards implemented Not applicable
h No. of awards pending implementation Not applicable
15. Concentration of Deposits, Advances, Exposures and NPAs
(Rs in '000s)
1. Concentration of Deposits
(Rs in Cr)
Total Deposits of Twenty largest depositors 476.09
Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 3.71%
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S.No. Particulars Current Year Previous Year
a Opening balance in the Rural Advances Provision Account 106736 456736
b The quantum of Rural Advances Provision made in the accounting year Nil Nil
c i. Amount of Draw down made during the accounting year Nil Nil
ii. Provision written back to profit and Loss account Nil 350000
Total of Draw down Nil 350000
d Closing balance in the Rural Advances Provision Account 106736 106736
82
Sub-Total (B)
Total (A+B)
1228.02 10.06 0.82 1410.56 9.64 0.68
12368.53 209.74
1.69 10601.76
251.99 2.38
16. Sector Wise NPAs (Rs. in Cr)
Sl. No Sector*
Current Year Previous Year
Outstanding
Total
Advances
Gross NPAsPercentage of
Gross NPAs to
Total Advances
in that Sector
Percentage of
Gross NPAs to
Total Advances
in that Sector
A Priority Sector
1 Agriculture and
allied activities8431.78 116.43 1.38 7093.06 144.59 2.03
2. Advances to
industries sector
eligible as
priority sector
lending
300.01 48.02 16.00 214.24 59.54 27.79
3 Services 68.69 11.74 17.09 50.27 12.58 25.02
4 Personal Loans 2340.03 23.49 1.00 1833.63 25.64 1.39
Sub-Total (A) 11140.51 199.68 1.79 9191.20 242.35 2.63
B Non-Priority
Sector
1 Agriculture and
allied activities -
-
-2 Industry
3 Services
4 Personal loans 1228.02 10.06 0.82 1410.56 9.64 0.68
Outstanding
Total
Advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Gross NPAs
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2. Concentration of Advances
(Rs in Cr)
Total Advances of Twenty largest Borrowers 15.21
Percentage of Advances of twenty largest borrowers to Total Advances of the Bank 0.12%
3. Concentration of Exposures
(Rs in Cr)
Total Exposure of Twenty largest Borrowers/Customers 476.09
Percentage of Exposures to twenty largest Borrowers/Customers to Total Exposure of the 1.89%
4.Concentration of NPAs
(Rs in Cr)
Total Exposure to top four NPA accounts 1.16
83
17. Movement of NPAs
II. NOTES TO ACCOUNTS
1. Reorganization of Area of Operations of the Bank:
The Bank has been formed vide Notification dated 31st March 2007 issued by Department of Economic Affairs (Banking
Division), Ministry of Finance, Government of India. As per the said notification, the area of the operation of the Bank is in
eight districts of erstwhile State of Andhra Pradesh (Warangal, Medak, Khammam, Nalgonda, Mahabubnagar, Srikakulam,
Vizianagaram and Visakhapatnam districts).
Vide notification dated 20th October 2014 issued by the Department of Financial Services, Ministry of Finance, Government of
India the districts of Warangal, Medak, Khammam, Nalgonda, Mahabubnagar are omitted. Pending finalization of the
modalities for this notification and approvals from the competent authority, the operations of the bank are being carried out in
all the five districts. Financial statements as at the end of the reporting date include assets and liabilities, income and expenses
relating to the Bank in all the eight districts.
st2. Classification of Assets (Advances) as on 31 March, 2017:(Rs in 000s)
3. Inter Bank Participation Certificate (IBPC):
During the year the bank has entered into Risk sharing participation Contract with State Bank of India (Sponsor
Bank) under Inter Bank Participation Certificate (IBPC) and issued priority sector advances to the extent of
Rs.1036,00,00 (thousands) on 13.07.2016 for the period of 180 days as cash pay‐out and maturity period expired
on 09.01.2017. Again during the year issued priority sector advances to the extent of Rs.1320,00,00 (thousands) on
13.02.2017 for the period of 180 days as cash pay‐out. The said cash pay‐out is grouped in Balances with Banks in
other deposit Accounts (Sch‐7)
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Particulars Rs. in CrstGross NPAs as on 1 April 2016 (Opening Balance) 252.00
Additions (Fresh NPAs) during the year 123.59
Sub-Total (A) 375.59
Less:
(I) Upgradations 16.69
(ii) Recoveries (excluding recoveries made from upgraded accounts) 143.26
(iii) Write-Offs 5.90
Sub-Total (B) 165.85stGross NPAs as on 31 March 2017 (Closing Balance) (A-B) 209.74
Classification Gross Advances Net Advances
Standard Assets 121587921 121587921
Sub Standard Assets 366930 307556
Bad & Doubtful Assets 1730467 568198
Total 123685318 122463675
Add: Provision on Sub‐Standard And Doubtful Assets etc 1221643
Total Gross Advances 123685318 123685318
84
(Rs in 000s)
6. Fixed Assets:
The Bank is in possession of Land at various places to the extent of 11,284.86 square yards, which was gifted by certain donors /
assigned by Government of Andhra Pradesh for construction of Office Buildings. The Bank had incurred site development
expenditure and the said costs were capitalized under Land. During the earlier years the Bank has given Contract to Bharat
Sanchar Nigam Limited (BSNL) for construction of Office Buildings at various locations and amounts paid to BSNL against the
bills submitted for construction / initial advance aggregating to Rs.5,50,77 (thousands) which was disclosed under Capital
Work in progress in Fixed Assets Schedule.
7. Income Tax Matters:
Income Tax department has raised certain demands on the Bank, with regard to assessment of income of the Bank and the tax
payable thereon by the Bank. The Bank is contesting demands raised by the Income Tax Department and pursuing the same.
Against the said tax demands, based on the opinion obtained from the Tax Consultants, and as estimated by the Management,
the Bank recognized an amount aggregate to Rs.18,14,00 (Thousands) as contingent liabilities and are shown in Schedule 12 –
“Contingent Liabilities ‐ Claims against the Banks not acknowledged as debts”. Against the disputed claims, the Bank paid an
amount of Rs. 347465 (Thousands) and the same is being shown in Schedule 11 – “Other Assets ‐ Income Tax paid against
Disputed Demand”. Bank is confident of resolving the dispute in it's favour. Liability, if any, will be charged to Profit and Loss
account in the year of settlement of these disputes / claims.
8 Data Purification and Asset Classification
The Bank is having a seamless system in its Core Banking Solution (CBS) for recognizing and identifying the non performing
assets in accordance with the extant guidelines. Further, the Bank has a system of manual verification for ensuring the
correctness of base data fed. Management intends to continue such manual verification to ensure compliance of the Income
Recognition and Asset Classification norms and other statutory compliances.
4. Bankers’ Cheques:
The Unpaid Banker Cheques which were credited earlier years to P&L account aggregating to Rs.3,31,35
(in thousands) furnished as contingent liability in Schedule 12.
5. Depositor Education and Awareness Fund (DEAF) Scheme:
Disclosure as required under Depositor Education And Awareness Fund Scheme – 2014 notified by the Reserve
Bank of India under DBOD No. DEAF Cell.BC.114/30.01.002/2013‐14 dated 27th May 2014:
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Sl No Particulars Current Year Previous Year
1 Opening Balance of Amount transferred to DEAF 1,34,75 1,16,00
2 Add: Amount transferred to DEAF during the Year 2016‐17 5,36 18,75
3 Less: Amounts reimbursed by DEAF towards Claim 6,45 NIL
4 Closing balance of amounts transferred to DEAF 1,33,66 1,34,75
85
9. Fraud Cases:
Details of Fraud cases are as under: (Rs in 000s)
10. The figures mentioned in Balance Sheet, Profit & Loss Account and Schedules 1 to 16 have been rounded off to the
nearest thousand rupees.
11. Previous Year's figures have been regrouped /reclassified/recast wherever necessary to confirm the current year
classification.
Place: Ramachandrapuram, Medak DistDate: 27th April 2017
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
For Andhra Pradesh Grameena Vikas Bank
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)Partner General Manager‐III ChairmanMembership No : 201570Firm Registration No : 000459s
(M.S. Hari Shankar) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director
(V.S. Gupta) (Ms. K. Amrapali, IAS) (Smt. K. Sunitha IAS)Director Director Director
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Particulars 31.03.2017 31.03.2016
Provision at the beginning of the year 1,44,53 1,58,27
Less: Written off during the year 53,25 Nil
Add: Additional provision created during the year Nil Nil
Less : Provision reversed during the year Nil 13,74
Provision as at the year end 91,28 1,44,53
Number of fraud cases at the year end 8 8
86
CASH FLOW STATEMENT for the Year ended 31st March 2017
Particulars 31-Mar-2107 31-Mar-2106
Cash Flows from Operating Activities:
Net Profit after Tax 3519912 2234707
Add:
Depreciation debited to P&L 95685 92525
Amortisation value of Investments
Provision for Income Tax 1690600 1076157
Provision for IT Earlier year's Adjustment 1893 88183
Deferred Tax Asset Adjustment 14578 13277
Provision for Rural Advances Nil ‐350000
Interest Paid on Amounts received from RBI, SBI, NABARD 3126205 2739088
Less:
Income on Investments ‐2504950 ‐1714299
Operating profit before working capital changes 5943923 4179638
Working Capital Changes:
Increase / (Decrease) in Deposits 26164609 19221138
Increase / (Decrease) in Liabilities and Provisions ‐1523896 ‐1795476
(Increase) / Decrease in Advances ‐10639312 ‐19635858
(Increase) / Decrease in Other Assets ‐1665300 ‐951623
Cash generated from Operations 12336101 ‐3161819
Less: Income Tax Paid ‐1450000 ‐890000
Net cash from Operating Activities A 16830024 127819
Cash Flows from Investing Activites:
Purchase of fixed assets ‐111336 ‐141906
Purchase of Investments ‐20746050 ‐2867797
Income from Investments 2504950 1714299
Net cash from Investing Activities B ‐18352436 ‐1295404
Cash Flows from Financing Activites:
Funds from SBI, NABARD, NHB 18870432 5258019
Interest paid to SBI, NABARD, NHB ‐3126205 ‐2739088
Net cash from Financing Activities C 15744227 2518931
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
(Rs. 000s )
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87
Effect of Foreign Exchange Rate Changes
Net Increase/(Decrease) In Cash And Cash Equivalents (A+B+C) 14221815 1351346
Add: Opening cash and cash equivalents
i) Cash on hand 843756 752015
ii) Balances with Reserve Bank of India & Other banks 4435141 3784936
iii) Deposit Accounts 28376100 27766700
Total 47876812 33654997
Note:
Closing Cash and Cash Equivalents
i) Cash on hand 1850722 843756
ii) Balances with Reserve Bank of India & other banks 5492326 4435141
iii) Deposit Accounts 40533764 28376100
Total 47876812 33654997
Particulars 31-Mar-2107 31-Mar-2106(Rs. 000s omitted)
Place: Ramachandrapuram, Medak DistDate: 27th April 2017
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
For Andhra Pradesh Grameena Vikas Bank
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)Partner General Manager‐III ChairmanMembership No : 201570Firm Registration No : 000459s
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