REPORT OF THE BOARD OF DIRECTORS
To the State Bank of India, Reserve Bank of India and the Central Government, in termsof Section 43(1) of State Bank of India (Subsidiary Banks) Act, 1959.
1. MANAGEMENT DISCUSSIONS ANDANALYSIS :
1.1 Macro Economic Scenario and Banking environment
1.1.1. Global economic developments over the last few months present a mixed picture.US macro-economic prospects are clouded by the uncertainty surrounding the temporaryappropriations and the debt ceiling. In the Euro area, plagued by contingent risks ofpolitical uncertainty and adjustment fatigue, GDP shrank for the third successive quarterin Q4. Though some emerging and developing economies (EDEs), including China, aregradually returning to faster growth, activity is slowing in others, hobbled by weakexternal demand and slack domestic investment.
1.1.2. India's gross domestic product (GDP) slowed significantly this year, dropping to5.5 per cent in the first quarter, and dropping even further to 5.3 percent in the secondquarter. GDP growth in Q3 of FY 2013, at 4.5 percent, was the weakest in the last 15quarters.
1.1.3. The Central Statistics Office (CSO) has projected GDP growth for 2012-13 of 5.0percent lower than the Reserve Bank's baseline projection of 5.5 per cent set out in theThird Quarter Review, reflecting slower than expected growth in both industry andservices.
1.1.4. The year on year Wholesale Price Index inflation edged up to 6.8 per cent inFebruary 2013 from 6.6 per cent in January, essentially reflecting the upward revisionseffected to administered prices of petroleum products. On the other hand, non-foodmanufactured products inflation, and its momentum, continued to ebb along the trajectorythat began in September 2012, enabled by softening prices of metals, textiles, and rubberproducts. Retail inflation continued on the upward path that set in from October 2012. Thedivergence between whole-sale and consumer price inflation continued to widen during theyear.
1.1.5. With the RBI's policy of altering only the Repo rate, Banks are unlikely toimmediately cut deposit and lending rates, but may think to cut the rates in the nextfinancial year. Liquidity in the Banking system is tight in the run-up to the financialyear-end. However, further rate cuts and continuous monetary easing through open marketoperations will continue to support the bond market and the yields are expected tostabilize at lower levels.
Repo Rate: Reduction of Repo rate under the Liquidity Adjustment Facility (LAF) by25 basis points from 7.75 per cent to 7.50 percent was effected in a bid to cut the costof funds of Banks, which is further lent to productive sectors of the economy.
Reverse Repo Rate : The Reverse Repo rate under the LAF subsequently stood adjustedto 6.5 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 8.5percent.
Cash Reserve Ratio : The reduction of cash reserve ratio (CRR) of Banks by 25 basispoints, effective from February 9 and open market purchases of Rs. 2,000 crs sinceFebruary have enabled money market rates to remain anchored to the policy Repo rate.
Statutory Liquidity ratio : SLR has remained unchanged at 23 per cent w. e. f.11.08.2012.
1.1.6. To sum up, growth of the economy in 2012-13 has the following features :
Growth has been accelerated significantly on the domestic front, even asinflation remains at a level which is not conducive for sustained economic growth.
Despite notable softening of non-food manufactured products inflation, foodinflation remains high, driving a wedge between whole sale price inflation, and isexacerbating the challenge for monetary management in anchoring inflation expectations.
Macro-economic priorities on the domestic front would be to 'raise the growthrate, restrain inflation pressures and mitigate the vulnerability of the external sector'.
The composite Purchasing Managers' Index (PMI) declined in February, largelyreflecting slower expansion in services.
Gross fiscal deficit (GFD)-GDP ratio, at 5.2 per cent, was contained around itsbudgeted level, mainly by scaling-down plan and capital expenditure.
Policy stance emphasizes addressing the growth risks, the head-room for furthermonetary easing remaining quite limited.
1.2. ECONOMY OF KARNATAKA
1.2.1. Karnataka economy is largely service oriented with the agricultural andindustrial sectors also contributing substantially. The State is the largest producer ofcoffee, raw silk, and sandalwood in the country and also adds considerably to thehorticulture production. The major manufacture oriented industries in the State includesugar, paper, steel and cement.
1.2.2. Karnataka's state capital Bangalore is considered the Silicon Valley of India.Several IT companies have their offices in Bangalore.
1.2.3. Advanced estimates of Karnataka's Gross Domestic Product (GSDP) at constant(2004-05) prices show that the State economy is expected to grow at 5.9% and reach Rs.3,03,444 crs in FY 2013 (from Rs. 2,86,410 crs in FY 2012). Karnataka's economy is showingencouraging trends due to the strong service sector, which grew by 8.9% in FY 2013.Despite the drought situation prevailing from last year, the agriculture and allied sectorhas achieved a growth rate of 1.8% in 2012-13 against -2.2% in FY 2012. The composition ofGSDP for FY 2013 is 15.3% from Agriculture and Allied Activities sector, 25.9% fromIndustry sector and 58.8% from service sector.
1.2.4. The State's own tax revenues increased from Rs. 25,987 crs in FY 2008 to Rs.51,821 crs during FY 2013 at a compound annual growth rate (CAGR) of 14.8%. The share ofdevelopment expenditure in GDP has significantly increased from 10.51% in FY 2008 to12.89% in FY 2013, while the share of interest payments has declined from 1.93 % to 1.44%.
1.2.5. The business growth of our Bank depends to a large extent on the Karnatakaeconomy, since 82.2% of branches (641 out of 780 branches as on 31.03.2013) are located inKarnataka. The budget size and State Plan FY 2014 envisages a total expenditure of Rs.1,17,005 crs on various development activities and regulatory functions of the Government,which is an increase of 13.88% over the budget of Rs. 1,02,742 crs of FY 2013. TheGovernment has given special thrust on infrastructural facilities such as Energy, Roads,Railways and Dhabhol-Bangalore Gas line project. Substantial investments are beingproposed in the city of Bangalore. Construction activity through-out the State, andinvestments by reputed industrial groups will offer good growth opportunity for the Bank.
2. REVIEW OF BANKING OPERATIONS
2.1. Market Share and Business Growth
2.1.1. The business levels of the Bank and the position of market-share in recent yearsare furnished hereunder.
(Rs. in crores)
|Year ended 31st March, ||2009 ||2010 ||2011 ||2012 ||2013 |
|Aggregate Deposits ||32,388 ||38,437 ||42,779 ||49,663 ||56,712 |
|Percentage of growth ||20.94 ||18.68 ||11.30 ||16.09 ||14.19 |
|Market share % ||0.84 ||0.86 ||0.79 ||0.78 ||0.83* |
|Total Advances ||25,880 ||29,874 ||34,442 ||40,653 ||45,981 |
|Percentage of growth ||21.42 ||15.43 ||15.29 ||18.03 ||13.11 |
|Market share % ||0.93 ||0.92 ||0.87 ||0.85 ||0.85* |
2.1.2. The Bank has seen continuity in growth during FY 2013 also, with aggregatedeposits reaching a level of Rs. 56,712 crs, a growth of Rs. 7,049 crs over the previousyear, at a rate of 14.19%. The total advances have reached a level of Rs..45,981 crsrecording a growth of Rs..5,328 crs over the previous year, at a growth rate of 13.11%. Ason 22.03.2013 the Bank's market share of Deposits increased to 0.83% in the current yearfrom 0.78% in the previous year though, Bank's market share of Advances remained static at0.85%
2.2 Key Performance Indicators
|Sl. No. ||Key Indicators ||2010-11 ||2011-12 ||2012-13 |
|1. ||Net Profit (Rs. in crores) ||500.62 ||369.15 ||416.10 |
|2. ||Return on Assets (%) ||1.03 ||0.67 ||0.66 |
|3. ||Return on Equity (%) ||16.17 ||10.82 ||11.05 |
|4. ||Expenses-Income Ratio (%) ||43.87 ||49.55 ||46.29 |
|5. ||Earnings per Share (in Rs.)* ||121.66 ||78.88 ||88.91 |
|6. ||Gross NPA to Gross Advances (%) ||2.51 ||3.70 ||4.53 |
|7. ||Net NPA to Net Advance (%) ||1.38 ||1.93 ||2.69 |
EPS restated on account of Rights Issue during financial year 2010-11.
Total Income of the Bank increased by 16.42%, from Rs. 5,595 crs as at March, 2012 toRs. 6,514 crs in March,2013. Interest Income increased from Rs. 5,078 crs to Rs. 5,965 crs(17.47%).
Average Yield on Advances increased from 11.44% in FY 2012 to 11.62% during FY 2013,while Average Yield on Investments increased from 7.22% in March 2012 to 7.30% during thesame period. Non Interest Income increased by Rs. 32 crs (6.2%) from Rs. 516 crs to Rs.548 crs; the growth in profit from sale of securities increased from Rs. 38.60 crs to Rs.66.53 crs.
The Total Expenditure (before provisions & contingencies) increased by 15.3%, fromRs. 4,535 crs in 2011-12 to Rs. 5,230 crs in 2012-13. While Interest Expenses increased byRs. 631 crs (18.1%) the Operating Expenses increased by Rs. 64 crs (6.1%) during thecurrent year. The Average Cost of Deposits increased from 7.09% in March, 2012 to 7.32% inMarch 2013. CASA deposit share declined marginally from 32% as on 31.03.12 to 31.4% as on31.03.13.
The Operating Profit increased by 25% from Rs. 1,059.61 crs in FY12 to Rs. 1,331.03 crsin FY13, while the Net Profit increased from Rs. 369.15 crs to Rs. 416.10 crs (12.7%).Return on Assets (ROA) remained largely static at 0.66 (0.67 in FY12).Return on Equity(ROE) increased from 10.8 % to 11.1% during the year.
2.6. Capital Adequacy Ratio
The Capital Adequacy Ratio under Basel II guidelines stood at 11.79% as on 31st March2013, against 12.55 % as on 31st March 2012, consequent upon an increase in Risk WeightedAssets by 14%, as against an increase in Capital funds by 7%.
The Board of Directors has declared a dividend of 115% (Rs. 11.50 per equity share ofRs.10/-) for the year 2012-13, our Centenary Year. This will involve a pay-out of Rs.64.55 crs, including the tax component. The payout ratio for 2012-13 works out to 12.93 %as against 12.68% for 2011-12.
3. BUSINESS REVIEW
3.1.1. Total Deposits of the Bank grew by Rs. 6,784 crs to reach the level of Rs.56,970 crs. Aggregate Deposits (total deposits excluding Inter Bank deposits) stood at Rs.56,712 crs as at the end of March 2013, recording a growth of Rs. 7,049 crs (14.2%) duringthe year.
3.1.2. Personal Segment Deposits
Personal segment deposits grew by Rs. 4,248 crs, registering a growth of 18.03%, toreach a level of Rs. 27,810 crs as on 31st March 2013. The share of Personal segmentdeposits increased from 47.44% of Aggregate Deposit to 49.03% in FY 13. The number ofdeposit accounts under Personal segment have increased by 11,87,121 during the year.
To augment deposit growth under Personal segment, three new deposit products viz.MyBank 100, Centenary Liquid Deposit and Personal Risk Insurance were introduced. PersonalRisk Insurance Product provides depositors free Accident death cover upto Rs. 4 lacs onpayment of a nominal annual premium of Rs. 100.
3.2. Credit Expansion :
3.2.1.While the total advances of the Bank increased from Rs. 40,653 crs to Rs. 45,981crs, registering a growth of Rs. 5,335 crs (13.1%) during the year, Net advances (i.e. netof NPA related/ floating Provisions, and outstanding under Staff Festival Advance) of theBank increased from Rs. 39,835 crs in March 2012 to Rs. 44,932 crs. Credit Deposit Ratioof the Bank decreased from 81.9% in March 2012 to 81.1% in March 2013. Average TotalAdvances grew by Rs.5,705 crs (16.06%) during the year.
3.2.2. The Head Office Credit Committee - I (HOCC-I), with the Managing Director asChairman and Head Office Credit Committee - II (HOCC-II), with the Chief General Manageras Chairman, has been set up in order to make the credit process speedier and to takedecisions through a committee approach. A total of 103 meetings were held in aggregate bythe Committee.
Besides the above HOCCs, in order to provide speedier credit and consequent todevolution of wider powers to the NetWorks, 4 Network Credit Committees, with NetworkGeneral Managers as Chairmen, were constituted and 44 meetings were held in aggregate.
3.3 Personal Segment Advances
Personal segment advances grew by Rs. 1,081 crs to reach a level of Rs. 7,459 crs. YOYgrowth of 18%. Housing loans grew by Rs. 516 crs and reached a level of Rs. 3,732 crs. TheBank has introduced IBA Model on Education Loan for Vocational courses during the year. Toincrease Housing Loan, Car Loan and Gold Loan business under Personal Segment a specialcampaign was conducted between 25.02.2013 to 31.03.2013. As a result Housing Loans grew byRs.516 crs to reach a level of Rs. 3,732 crs, Car Loans grew by Rs. 104 crs to reach alevel of Rs. 575 crs and Gold Loan grew by Rs.197 crs to reach a level of Rs.255 crs.
Bank has waived Pre-payment penalty/ Pre-closure charges for floating rate Housingloans and Car loans besides Educational loans.
3.4. Priority Sector Lending and Social Banking
3.4.1. The total credit provided to the Priority Sector for the year ended March 2013stood at Rs. 13,483 crs, including Interbank Participation Certificate of Rs. 685 crsinvested in Kaveri Grameena Bank, which constitutes 33.8 % of the Adjusted Net Bank Credit(ANBC). Segment-wise status of these advances is as under:
Agriculture: The direct Agricultural advances increased by 17.2% from Rs.4,404 crs to Rs. 5,179 crs. Total agricultural advances went up from Rs.5,247crs to Rs.5,752 crs, registering a growth of 10 %.
Agricultural Gold Loan also registered a growth of 227% from Rs.270 crs to Rs.885 crs.53,879 Kisan Credit Cards were issued on revised RBI guidelines aggregating to Rs.1,626crs.
Micro and Small Enterprises (MSE) : The Bank's advance to Micro and SmallEnterprises as on 31.03.2013 is Rs. 3,756.41 crs.
Personal & Services Banking (P&SB): While housing loans underpriority sector reached a level of Rs. 2,808.22 crs during the year, education loans grewby over 5.1% and were Rs. 593.89 crs during 2012-13.
3.5. Agriculture Finance :
3.5.1. The following areas need special mention in the area of agricultural finance:
SBM RECOTRAC SCHEME: A special OTS Scheme for tractor NPA accounts wasintroduced during the year. A recovery of Rs.40.64 crs was made, involving closure of 620accounts.
DROUGHT RELIEF MEASURES:
With the prevalence of drought-like situation in 157 of the 175 taluks in KarnatakaState, 63,809 farmers were relieved of repayment of Agriculture loans, byrestructuring/rescheduling of their loans amounting to Rs.707 crs. Fresh finance was alsoconsidered for the affected farmers.
3.6. Micro and Small Enterprises (Manufacturing)
3.6.1. The Bank's advances to Micro and Small Enterprises (Manufacturing) as on31.03.2013 is Rs. 2,311.54 crs.
3.7. Micro and Small Enterprises (Services)
Bank's advances to Micro & Small Enterprises (Services) as on 31.03.2013 isRs. 1,444.87 crs.
The Bank has introduced Capital Subsidy/Refinance Scheme under"MYBANK-SOLAR WATER HEATING SYSTEM" for installation of Solar Off Grid andDecentralized application under Jawaharlal Nehru National Solar Mission (JNNSM) of theMinistry of New and Renewable Energy, GOI.
Interest on MSE advances was rationalized during the year and minimum rate of interestup to Rs.10 lacs is fixed at 11.40% (linked to Base Rate) with/ without CGTMSE cover. Themaximum rate of interest is 13.65% for loans with CGTMSE cover and with CRA rating of SB10 and below. For loans without CGTMSE cover interest rate is 14.40% (for loans with CRArating of SB 10 and below).
A special campaign, "MyBank Centenary SME bonanza" was launched for MSEadvances during Jan -Mar 2013. During the campaign the Bank sanctioned 1,910 loansamounting to Rs.139 crs.
3.8. Credit Guarantee Scheme :
The Bank continued to extend collateral free financial assistance to MSE sector byparticipating in Credit Guarantee Scheme of CGTMSE. The maximum limit of coverage underthe scheme is Rs.100 lakhs. As at 31st March 2013, 8,727 accounts amounting to Rs. 530 crswere covered under the Scheme.
During the year 2012-13, CGTMSE Guarantee cover was made mandatory up to Rs.100 lacsfor loans under MSE segment, with the cost of Guarantee Fee and Annual Service Fee borneby the Bank.
3.9. Assistance to Weaker Section of Society :
The Bank continued to extend financial assistance to Weaker Sections of Society,comprising small & marginal farmers with land holdings of 5 acres or less, landlesslabourers, tenant farmers etc., village & cottage industries whose individual limitsdo not exceed Rs. 50,000/-, SJSRY, SGSY, SLRS, DRI, Self-Help Groups and advances to SC/STbeneficiaries. The outstanding amount under lending to Weaker Sections at Rs.5,787 crs asat March 2013 constitutes 14.37% of ANBC, as against stipulated benchmark of 10%.
3.10. Assistance to Women Entrepreneurs :
A booklet on "Charter for Women" containing the details of concessionsavailable to women has been supplied to all the branches for display/ distribution. TheBank's total credit to women as at March 2013 stood at Rs. 2,502 crs, covering 1,66,998beneficiaries, which worksout to 6.27% of Adjusted Net Bank Credit, as against thestipulated benchmark of 5%.
3.11. Measures to improve the economic conditions of Minority Communities :
The Bank's assistance to the Minorities under various schemes as at March 2013 stood atRs. 1,416 crs covering 35,187 beneficiaries, which forms 10.50% of Priority SectorAdvances.
3.12. Government Sponsored Schemes :
The position of assistance rendered under various Government sponsored schemes by ourBank as at March 2013 is as detailed below.
3.12.1. Prime Minister's Employment Generation Programme (PMEGP) :
The Government of India has launched the new scheme "Prime Minister's EmploymentGeneration Programme (PMEGP)" merging the flagship programme Prime Minister's RozgarYojana (PMRY) and Khadi & Village Industries Commission's Rural Employment GenerationProgramme (REGP) from FY2008-09. PMEGP empowers the first generation entrepreneurs to setup micro enterprises across the country. The Bank has extended financial assistance of Rs.3.77 crs to 93 beneficiaries under PMEGP during the year. The Bank's total credit underPMEGP Scheme as at March 2013 was
Rs. 50 crs, covering 999 beneficiaries.
3.12.2. Swarna Jayanthi Shahari Rojgar Yojana (SJSRY) Scheme :
The Bank has extended financial assistance of Rs. 3.46 crs under SJSRY during the yearto 289 beneficiaries. Total amount outstanding under SJSRY scheme as at the end of March2013 is at Rs. 34.67 crs, covering 4,483 beneficiaries.
3.12.3. Differential Rate of Interest (DRI) Scheme :
The Bank's advances under DRI scheme stood at Rs. 25.32 crs as at March 2013 covering15,181 beneficiaries and the share of advances to SC/ST beneficiaries within this is 53.2%(Rs. 13.48 crs).
3.12.4. Swarna Jayanthi Gram Swarozgar Yojana (SGSY) Scheme :
The Bank has extended financial assistance under SGSY during the year to 126 groupbeneficiaries and 162 individual beneficiaries were also extended financial assistance tothe tune of Rs. 571 lacs.
3.12.5. Banking Codes and Standards Board of India (BCSBI) issued revised guidelines onCode for Banks commitment to Micro and Small Enterprises, 2012 during the year. Theguidelines are hosted in Bank's website also.
3.13. Investments :
3.13.1. The total investments of the Bank in Government securities, other approvedsecurities and Non-SLR securities increased from Rs. 14,786 crs as at the end of March2012 to Rs. 16,864.01 crs as at March 2013.
313.2. Profit on sale of investments increased from Rs. 38.60 crs in 2011-12 to Rs.66.53 crs in 2012-13. During the year interest and dividend income, from investments netof amortization charges, registered a growth of Rs. 27.93 crs (21%) over March, 2012level.
3.13.3. While interest / yield on investment increased from 7.22% (2011-12) to 7.30%(2012-13) due to the fact that new securities purchased were at higher yield levels, yieldon investments, including profit on sale of securities, increased from 7.24 % to 7.49 %during the same period.
3.13.4. Foreign Exchange Turnover of the Bank 2012-13 touched Rs.404,178 crs (MerchantTurnover - Rs. 24,978 crs and Trading Turnover - Rs. 379,200 crs) against previous yearlevel of Rs. 177,988 crs (Merchant Turnover - Rs. 31,583 crs and Trading Turnover - Rs.146,405 crs).
3.13.5. The exchange profit generated from Foreign Exchange business during the 2012-13was Rs. 58.25 crs. vis-a-vis Rs. 32.56 crs in the previous year.
3.14. International Banking
3.14.1. The level of Export Credit as on 31st March 2013 was Rs. 1,395.44 crs(Rs.1,325.17 crs as on 31st March 2012) constituting 3.50 % of ANBC. In order to encourageexports, more eligible exporting units were offered Gold Card Scheme on competitive terms,including interest rate concession of 0.25%. Exporters' meets were arranged at strategiccenters periodically.
3.14.2. NRI Deposits as on 31.03.2013 stood at Rs. 972 crs, showing an increase of Rs.201.02 crs, as against Rs.770.98 crs, comprising FCNR(B)/RFC deposits of Rs. 181 crs andNRE/NRO deposits of Rs. 791 crs. We propose to devote more focussed attention to thisarea, by establishing a couple of NRI branches during the current year.
3.14.3. As per Bank's BPR objectives, the Bank had set up five TFCPCs at Bangalore,Chennai, Hyderabad, Mumbai and New Delhi. During FY 2012-13, more branches have beenlinked to TFCPCs in order to consolidate the front-line processing and contributeexpertise to all such branches, for extending quality service to Exporters.
3.14.4. During the year, Bank's Export Credit portfolio, other than exposures toCentral PSU and LC-backed bills business, have been covered under Export Credit Insurancefor Banks (ECIB), Whole Turnover Packing Credit (WTPC) and Whole Turnover Post Shipment(WTPS) Schemes of Export Credit Guarantee Corporation of India.
3.15. Cross Selling :
During the year over 33,125 lives were insured through various products of SBI LifeInsurance Company Ltd, with a premium collection of Rs. 47.17 crs. The Bank has collecteda premium of Rs. 1.87 crs while marketing General Insurance Products. In respect ofInvestment Products, the Bank is extending Mutual Funds products of SBI MF and UTI MF.
Applications for SBI Credit Cards are also sourced by the Bank. The Bank has earned asincome of Rs. 9.25 crs from Cross Selling business during FY 2012-13.
3.16. Government Business
3.16.1. State Government Transactions :
The Bank has been handling a major share of Government of Karnataka transactions forthe past many years. About 86% of our total Government Business emanates from StateGovernment transactions and the turnover is directly linked to the budget of the StateGovernment. A turnover of Rs.55,854 crs has been achieved during FY 2012-13, as againstRs. 60,394 crs in 2011-12. The decrease of Rs. 4,540 crs is on account of rise in thenumber of participating Banks in the e-payment initiatives of the Government.
3.16.2. Central Government Transactions:
During the year 2012-13, business from various Central Government Departments likePostal, Railways, Defence, Central Board of Direct Taxes, Central Board of Excise andbusiness from various Central Schemes like Public Provident Fund, Senior Citizens SavingsScheme, etc., constituted approximately 14% of the Bank's total Government businessturnover. Our business turnover from Central Government departments during the year2012-13 is at Rs.9,357 crs against the turnover of Rs.10,075 crs registered during2011-12. The decline is attributed to the increase in the number of participating Banks inthe e-payment initiatives of the Government.
3.16.3. Income from Government Business :
In FY 2012-13 we have earned a commission of Rs.67.95 crs (FY 2011-12 Rs.68.04 crs)from Government business. The average yield on Government transactions for the year is0.104%. The decrease in income by a marginal Rs.0.09 crs in comparison to 2011-12 is onaccount of:-
Increase in the number of participating Banks on account of e-paymentinitiatives of the Government.
Rationalisation of commission rates by Reserve Bank of India with effect from01.07.2012.
Increase in the number of transaction through e-mode.
3.16.4. We are actively involved in most e-governance initiatives of the Government.
3.16.5. Migration of State and Central Government pension records to new package isnearly complete. This will provide improved service to pensioners.
3.17. Marketing Initiatives:-
3.17.1. Marketing of Bank's products and services on an ongoing basis assumes greatimportance in its operational activities, to ensure sustainable growth. The institutionalset-up to meet the new challenges in marketing, using the power of technology, hasaccordingly been strengthened at various operating levels. A full-fledged MarketingDepartment is functioning at Head Office. Besides, to further strengthen the marketingactivities Customer Relationship Managers are also placed in large branches.
3.17.2. Marketing efforts at various levels of the Bank have enabled the Bank to openlarge number of salary accounts of Government employees, which has helped in bringing CASAdeposits from various Government departments. Marketing functionaries are meeting CarDealers, Builders/ Developers at periodical intervals, which has also facilitated in broadbasing Bank's retail advance. Marketing Department is also putting up stalls in importantexhibitions to market Bank's products and services.
3.17.3. Focussed marketing efforts are directed towards improving Retail/ PersonalSegment advances by conducting Home Loan/Car Loan Melas at important centers of the Bank.With a view to provide our customers a wide basket of products, the Bank has beenintroducing new products/ services regularly.
3.17.4. Contact Centre - As a customer friendly service, State Bank of Mysore hasestablished a dedicated "SBM Contact Centre". The Centre is provided with aToll-Free Number 1800-425-2244, which is accessible throughout the country. A separatePrimary Rate Interface (PRI) Number 080-22300020 is also provided. The information fromContact Centre is available in English, Hindi and Kannada and it provides services"24 hours on 365 days (24*7*365) basis".
Script Management System (SMS):
Scripts are documents detailing the different products and services in a easilyreadable user friendly format.
Lead Management System (LMS):
LMS can be used as a marketing tool -campaign tool and is also a strong MIS forcontrollers (Lead Tracks). It provides the Bank a tracking mechanism for business leadsreceived through SBM Contact Centre toll free number 1800-425-2244.
3.17.5. Customer Grievance
Redressal:- The Bank has launched a Customer Redressal System called SMS Unhappy.The system facilitates customers to air their feedback/ grievances through the process ofa simple SMS message. "Unhappy" to 99 0002 0002. On receipt of the message theBank's dedicated Happy Room staff calls back the customer for the purpose of GrievanceRedressal.
3.18. NPA Management :
3.18.1. The stresses in the various sectors of the economy has led to the pressures onthe quality of assets.
The problems faced by textiles, food processing and Infrastructure sectors contributedto a substantial increase in NPAs in the C & I Segment. This, coupled with problems onthe agricultural front, caused by drought in most parts of the State, has resulted in anincrease of NPAs from Rs. 1,503 crs as on March 2012 to Rs.2,081 crs as on March 2013. TheGross NPA ratio increased from 3.70% to 4.53%. The net NPA ratio also increased from 1.93%to 2.69%. The provision for Non Performing Assets (including floating provision andcounter-cyclical provisioning buffer) stood at Rs. 872 crs. Provision Coverage Ratio is at60.10%. A time-bound action plan with measures, including effective use of SARFAESI Act,rehabilitation of viable units, vigorous follow-up of DRT cases, has been put in place toreduce NPA levels.
3.18.2. Restructuring of Debts: The Bank continues to provide Restructuring Packagewithin the framework of RBI guidelines to deserving borrowers under the RehabilitationProgramme or under packages approved by CDR / BIFR, subject to the viability of the unitsbeing established. The Bank has extended the package to 60,491 (19,569) borrowal accountswith dues amounting to Rs. 3237.13 crs (Rs.2671.23 crs). Towards diminution in their fairvalue on account of economic loss caused in the process of restructuring, provision to anextent of Rs. 180.28 (Rs.90.95) crs has been made by the Bank. (indicates last year'sfigure).
3.19. Lead Bank Scheme:
3.19.1. The Bank has been discharging Lead Bank responsibilities in three districtsviz., Mysore, Tumkur and Chamarajanagar. The Annual Credit Plans for 2013-2014 have beenlaunched. The combined annual credit plan target for 2013-2014 for all Banks in the threedistricts has gone up to Rs.8,186.87 crs., from Rs.6,513.17 crs. showing a growth ofRs.1,673.70 crs. (25.70% growth). As regard achievement of previous year's credit plani.e. for 2012-13 it is more than 100% in all the districts concerned. Regular DistrictLevel review meetings were arranged to review the position.
3.19.2. To impart entrepreneurial skill and guidance to Unemployed Youth in general andrural youth in particular and become gainfully self employed the Bank has establishedRUDSETI type of Training Centers viz. MyBank Institute for Promotion of Self Employmentand Development (MIPSED) at Hirehally Industrial Estate, Tumkur. A similar institutecalled "JSS RUDSET" is established at Mariyala,
Chamarajanagar Taluk, in association with JSS Mahavidyapeetha. Both the institutes arebeing managed by personnel on deputation from the Bank. These institutes impart trainingto candidates selected under various Government Sponsored Schemes, such as PMEGP, SGSY,BCM Corporation, SC/ST Development Corporation, Tailoring and Embroidery, Beauticiantraining, Automobile Mobile Repairing, Mobile Repair and Service etc. During the year,both the centers have conducted programs wherein trainees were given training.
3.20. Financial Inclusion
3.20.1. Bank has a comprehensive Financial Inclusion Plan for the years 2013 to 2016for covering 3,232 villages in Karnataka with population below 2,000 as per census 2001based on Gram Panchayat wise allocation of villages by SLBC. The Bank had earlier coveredall 254 allotted villages with population above 2000 with BC outlets before 31.03.2012 andanother 143 villages with population of 1,600 to 2,000 as part of extension of"Swabhiman" by 31.03.2013.
3.20.2. Further the Bank implemented the smart card based EBT Scheme in ChamarjanagarDistrict, covering all the villages in the District in all the 4 taluks. The SSP Scheme isoperational in the entire district, covering more than 53,000 beneficiaries. Apart fromthis, the Bank is participating in EBT program in Bellary and Chitradurga Districts in theallotted service area villages.
3.20.3. The Bank is also participating in the Direct Benefit Transfer Scheme ofGovernment of India for direct credit of benefits under Central Sponsored schemes in 43Pilot Districts identified for this purpose by the Departments of
Financial Services, GOI. The Bank has Lead District responsibilities in two of thesePilot Districts (Tumkur & Mysore), wherein the Bank has been effectively dischargingits overall responsibilities in implementing the scheme by all Banks.
3.21. Self Help Group (SHG) Lending
The Bank has credit linked 6,790 groups with an advance amount of Rs. 348.96 crs,during the current year and taking the cumulative total of such credit linkage programmeto 1,50,103 groups with a financial outlay of Rs.2,041.62 crs, upto 31st March 2013. Theseefforts of the Bank have been recognized and the Bank was awarded the 1st Best Bank Awardinstituted by NABARD under the Commercial Banks Category for its overall performance underSHG Bank Linkage Programme for the year 2010-11. The Bank has been the winner of eitherthe 1st or the 2nd prize award since March 2000, continuously.
3.22. Regional Rural Banks (RRB):
Kaveri Grameena Bank (KGB) the RRB sponsored by the Bank is having its Head Office atMysore, and covers 10 districts viz. Mysore, Hassan, Chamarajanagar, Tumkur, BangaloreUrban, Bangalore Rural and Ramanagara. After amalgamation of Chickmagalur Kodagu GrameenaBank and Vishveshvaraiah Grameena Bank, three more districts are added viz. Chickmagalur,Kodagu and Mandya districts. Their total branch network is 331 branches. All the branchesare functioning under CBS. The total deposits and advances of the KGB as on 31.03.2013stood at Rs. 3,845 crs and Rs.3,013 crs, respectively.
4. HUMAN RESOURCES:
4.1. Manpower Profile
4.1.1 Staff Strength: The total strength of the Bank as at the end of March 2013stood at 10,784 as against 10,249 as at March 2012. The staff strength comprised of 3,661officers, 4,899 clerical staff and 2,224 subordinate staff. Of these, 802 are Ex-defencepersonnel, 156 belong to physically handicapped category and 600 belong to the Minoritycommunity.
4.1.2. Women's Representation: As at March 2013, there were 2,843 women employees(comprising of 520 Officers and 2,323 Other Employees) in the Bank compared to 2,821 as atMarch 2012 (comprising 382 Officers and 2,439 Other Employees). Women employees constitute26.36% of the human resources of the Bank as at 31.03.2013. The Bank continued to provideequal opportunity to women in their career progression.
4.1.3. Scheduled Castes / Scheduled Tribes - Representation: As at the end of March2013, there were 2,062 Scheduled Caste employees comprising 667 Officers, 742 ClericalStaff and 653 Subordinate staff. There were 626 Scheduled Tribe employees comprising 253Officers, 232 Clerical staff and 141 Subordinate staff, as at March 2013. All theguidelines of the Government of India for safeguarding the interests of SC/ST employeeshave been complied with.
4.1.4. Human Resources Management Solutions (HRMS): Bank has implemented HumanResource Management Solutions (HRMS) to handle all HR activities in a phased manner.Mechanization of HR activities has resulted in substantial reduction of man power for HRactivities. HRMS Cell was formed to integrate salary, perquisites, reimbursement and leavedetails of the employees. The Cell has implemented Salary, reimbursement of Annual Medicalexpenses, furniture maintenance charges and monthly reimbursements and reimbursement ofbrief case expenses. Assets & Liability and Annual Appraisal Report are also beingimplemented w.e.f. 31.03.2013.
4.2.1. Training Activities and Coverage: The Bank regards its employees as itscritical assets and honing their skills to make them more competitive and knowledgeable isone of its priorities.
With a view to achieve the desired results and to establish high-performance workculture, Bank's Learning Centers at Bangalore and Mysore are imparting training on varioussubjects such as Advances and Deposits, Bank's various products, communication skills,marketing, behavioral science, etc. and also to familiarize with the new technologyadopted by the Bank and upgraded on a continuous basis. Several programmes on latesttechnology developments like internet Banking, mobile Banking and other alternate deliverychannels are also conducted. During the year the Bank had trained nearly 600 newlyrecruited Probationary Officers successfully. The training methodology of the Bank aims atkeeping its work-force proactive and customer-centric at all times, to meet the challengesof the competitive environment. The bank continues to focus on imparting training tomaximum number of staff. A new Learning Centre is due to commence operation in Hublishortly.
4.2.2. Our Learning Centers at Bangalore and Mysore have conducted in all 106 training/ workshops both functional and computer based programmes. During the year, 3,625 staffgot trained at our Learning Centers. The Bank regularly deputes Officers, based on theirjob profile, for training to Apex Training Institutes of SBI and also to TrainingInstitutes like NIBM, IIBF, and College of Agriculture Banking of Reserve Bank of India,etc. to update their knowledge with latest developments in the area of Banking. During theyear 651 officials were deputed to the Apex Institutes and other training institutes. Bankalso conducted special training programmes for credit management, fraud detection,currency verification, retiring staff etc. We have also utilized the services of StateBank Foundation Institute "Chetana" Indore, for "Leadership & Groomingprogramme", for our Probationary Officers, who were due for confirmation during theyear.
4.2.3. Pre-recruitment and Pre-promotional training: Pre-examination training forSC/ST/Ex-Servicemen/ Minority community candidates appearing for Probationary Officers'cadre/Clerical recruitment examination for selection in Associate Banks of State Bank ofIndia were conducted during the year at both the Learning Centers. Faculties of both theLearning Centers imparted training and guided the participants to prepare for the writtenexamination. The programme was well organized and well received by the participants.
Pre-Promotion training programmes for SC/ST/Minority Community employees were conductedat both the Learning Centers during the year for those who appeared for promotion(internal promotion) from Sub-Staff to Clerical, from Clerical cadre to Officer cadre andOfficers from JMGS I to MMGS II.
4.2.4. Training to CKGB Staff: Our Mysore Learning Center has imparted training toofficers / clerical staff of Cauvery Kalpataru Grameen Bank, now renamed as Kaveri GrameenBank after amalgamation (sponsored by SBM), as and when requested. In the current year 7training programmes for CKGB employees were conducted, covering 225 employees.
4.2.5. Training to retiring officers/ staff: To enable our retiring officers /staff to lead a happy, healthy and peaceful retired life, our Learning Center, Mysoreconducted 8 special training programmes for retiring employees, with inputs on financialplanning, health tips, yoga and relaxation techniques, during 2012-13 covering 332employees and their spouses.
4.2.6. E-Learning: Bank launched e-learning portal, "Gyanodaya" with thehelp of State Bank of India e-learning Dept, for providing its staff with on-line learningand training. This has an in-built facility for self-evaluation through on-line tests. Theportal is available 24X7 and all 365 days on internet. The portal is going to helpmanagement in training and identifying the suitable staff for specialized areas ofoperation.
5. INDUSTRIAL RELATIONS
5.1. Terminal Benefits to Retired Staff:
The Bank gives due importance to the settlement of terminal benefits well in time tothe staff on leaving the service of the Bank, either on superannuation or on othergrounds. During the current year 2012-2013, as many as 449 staff members have retired fromthe services of the Bank. Gratuity, Pension and commutation benefits, wherever applicable,have also been settled on top priority.
5.2. Defined Contributory Benefit Scheme:
Employees joining the services of the Bank from 1st April, 2010 are eligible under theDefined Contributory Pension Scheme (Corporate Model), which will be governed by theprovisions of New Pension Scheme introduced for employees of Central Government w.e.f.01.04.2004 and as modified from time to time. As at March, 2013 as many as 1,870 employeesare covered under "Defined Contributory Benefit Scheme".
5.3. Retired Employees Medical Benefit Scheme II :
Keeping the increase in medical cost in mind, Bank has extended limit of the existingRetired Employees' Medical Benefit Scheme. Employees retired under superannuation havebeen extended a medical benefit scheme (SBMREMB Scheme II) with a limit of Rs.7 lacs forself and the spouse for life term.
5.4. Staff Welfare Activities:
The major welfare measures extended to the members of the staff includes Holiday Home,Group Insurance Cover, Scholarship Scheme, Farewell Scheme for the retiring employees,Financial Assistance to the employees with physically handicapped/mentally challengedchildren, Medical Expenses Reimbursement Scheme, Birthday Memento & recurring expensesfor Staff Welfare activities.
5.5. The Banks relationship with its employees remained harmonious and cordialthrough-out the year.
6. SUPPORT FUNCTIONS
6.1. Technology Up-gradation
6.1.1. Automated Teller Machines as Acquirer and Issuer: We have analyzed the ATMOperations for the year 2012-13 and observed that the Bank is a NET acquirer i.e. otherBank customers using our Bank's ATMs are more than our Bank customers using other BankATMs.
In terms of revenue on the acquiring side, we are 2nd among all Associate Banks for theentire year and are 1st among Associate Banks for the last quarter.
6.1.2. Value added service in our ATMs and launch of new debit cards: In additionto the withdrawal of cash, many other value added services are also available throughATMs, like payment of insurance premium, mobile recharge, card payments, mobile Bankingregistration, etc. The Point of Sale transactions have registered a consistent growth andwith a view to further increase the POS usage and e-commerce transactions, a new cardstrategy has been formulated and introduced in our Bank. Accordingly, new 16 digit DebitCards and Card Verification Value (CVV) have been rolled out. Bank has recently introducedPlatinum card for affluent class customers, which is a chip-based Magstripe card, withhigher limit for daily Cash withdrawal and POS transaction.
6.1.3. Dash Board/Tracking in our ATMs: We have launched a dedicated page for ATMson our intranet site, furnishing the month-wise performance of all the ATMs in variousparameters with regard to availability/ Zone wise, Region-wise down-time, frequency ofbreakdown, etc. and is used as a Dash Board for monitoring individual ATM, Branch, Region,Zone-wise ATM performance.
6.1.4. Internet Banking: Bank is offering Internet Banking facility to both retailand corporate customers under the url www.onlinesbm.com, with a host of functionalities,which includes interbank fund transfer, e-payment of State and Central taxes, e-commercefacilities for online shopping of goods and services, online opening of fixed andrecurring deposits, etc. The number of registrations and volume of transactions throughInternet Banking has seen a growth of 38.34% and 64.52%, respectively, during the year.
6.1.5. Mobile Banking: Mobile Banking service, under the name State Bank Freedom,is available through four different modes viz. Application mode, WAP mode, UnstructuredSupplementary Services Data (USSD) and SMS-based, for use by customers. All importantfunctionalities, including enquiry, mini statements, interbank fund transfer through NEFTand IMPS and bill payment facilities are offered. The service has seen a growth of 193.36%and 476% in terms of the number of registrations and transactions, respectively, duringthe year.
6.1.6. Electronic Payment System:
Percentage of transactions through Alternate Delivery Channels to total transactions ofthe Bank is 31.06%. Percentage of all electronic (ATM, Internet Banking, Mobile Banking,RTGS, NEFT and ECS) transactions to Total transactions of the Bank is 33.28%. Thesefigures have improved from 28.68% as on 31.03.2012 to 31.06% as on 31.03.2013
6.1.7: Bank Website:
www.statebankofmysore.co.in: The Bank's Website started as a technology platform toshowcase Bank's products and schemes in the cyberspace, has transformed slowly into acompendium of information encompassing all areas of Bank's business initiatives,financials, acts, codes, policies, charters, products and services, interest rates,NRI/Forex services etc. Information on Technology initiative products like InternetBanking, Mobile Banking, Automated Teller Machines are provided in the website.
Keeping in line with the current market trends, online application forms for HomeLoans, Car Loans, Education Loans and SME Loans are made available in the website.Facility to track the status of the loan application is also available.
Customers can also know their KYC status through the website.
The website is available in Kannada, Hindi and English versions. A text version of thesite is also available for the Visually Challenged.
6.1.8: Online Customer Complaint Kiosk: Bank has developed new software packagesfor registering of customer complaints through Online Customer Complaints Kiosk. Customerscan now visit these Kiosks and lodge their complaint themselves. Currently the Kiosk hasbeen installed in Head Office and all Zonal Offices and will be rolled-out to RegionalOffices shortly.
6.1.9. Cheque Truncation System: CTS (Cheque Truncation System) is basically anonline image-based cheque clearing system where cheque images and Magnetic Ink CharacterRecognition (MICR) data are captured at the collecting Bank branch and transmittedelectronically. The objective of CTS is faster clearing of cheques through truncation orstopping of physical movement of cheques. In addition to Chennai & Delhi centers, CTShas been successfully rolled out in Bangalore, Coimbatore, Hyderabad and Kolkata centersduring 2012-13.
6.2. NEW BUSINESS:
It is an initiative to introduce a comprehensive range of IT products and services inorder to place our Bank in a pre-eminent position vis--vis other Banks. The idea is tomaximize business and minimize transaction cost. The products are customized to cater tothe new generation as well as traditional customer.
6.2.1: Merchant Acquiring Business (MAB): It is the New Business initiative, whichis a mechanism of facilitating payment for goods and services purchased through medium ofa debit/ credit card, using Point of Sales (POS) machines. It is advantageous to themerchants since it involves cash-less and increased volume of sale. For the Acquiring Bankit signifies increase in CASA deposit and additional income from Merchants in the form ofMerchant Discount Rate (MDR). Settlement of fund takes place through SBI Switch (for"on us" transactions), VISA/ MasterCard/NPCI Switch for "off us"transactions, on T+1 basis. Merchant Acquiring Business has been successfully launched byour Bank in various Merchant establishments. We propose to install 2,000 POS machineswithin FY 2013-14.
6.2.2: Cash Deposit Machine: Cash Deposit Machines are designed to accept cash fromcustomers using Debit Cards. It instantly gives credit to the customer's a/c online. Ithelps in de-congesting the Single Window counters and also in migrating customers toelectronic mode of cash deposit. We have deployed 4 CDMs and intend to deploy 30 more CDMsin the year 2013-2014.
6.2.3: Self Service Kiosk (SSK):
Presently we have 40 Multi Functional Kiosks (MFK) in various places. We haveundertaken to convert them into SSKs with their improved features of pass book printing,fund transfer through NEFT/RTGS/GRPT by using ATM Debit Cards. We are also going to deploy10 more SSKs in major centers in the coming year 2013-2014, and our total strength will be50 SSKs.
6.2.4: We are going to introduce Business Debit cards for our Commercial Customers, inorder to divert such transactions to the Alternate channels. Initially we plan to issue5000 VISA Pride Business Debit Cards.
6.2.5: We have already a base on 300 Green Channel Counters (GCC) machines deployed in153 branches. GCC is a device of paperless transactions by using ATM Debit cards in orderto decongest the single window counters.
We propose to deploy 200 more GCC machines for our branches in the year 2013-2014.
6.3. Business Continuity Planning:
6.3.1. In the backdrop of growing complexity of financial products and the increasedleveraging of technology, operational risks have assumed critical importance in recenttimes. The treatment of operational risk as a distinct risk category along with credit andmarket risks in the Basel II framework is a manifestation of the significance ofoperational risk in impacting the risk profile of a Bank. Working in this direction ourBank has
Adopted well defined IT Policy and IS Security Policy which is beingperiodically reviewed and updated,
Become a part of well established state-of-the art IT infrastructure (Common forstate Bank Group) which is certified as BS25999-2:2007 by BSI.
6.3.2. Our Bank has taken proactive measures to respond to business discontinuities andensure uninterrupted availability of all key business resources that support criticalBanking functions. In this connection the Bank has adopted a well defined BusinessContinuity Plan and Disaster Recovery Plan Policy. Our Bank is part of well establishedvery high-end Business continuity and Disaster Recovery infrastructure which ensuresseamless continuity in case of need. The Disaster Recovery drill is being successfullyconducted on a periodic basis during which the transactions of our branches are routedthrough the DR site. In addition to this, the Bank has a nearby site to ensure zero dataloss in the event of a disaster. The Bank has implemented Business Continuity Plan in allthe branches and also in the administrative offices with periodical reviews and updates.
6.4. Management Information System (MIS):
6.4.1.The MIS Department consolidates and maintains the Credit Information System (CIS)database apart from collating information from branches and Head Office Departments forsubmission of various statements to Reserve Bank of India like submission of BasicStatistical Returns, Sectoral Deployment of Funds etc.
6.4.2. The scope of CIS has also been extended to submission of data relating to CreditInformation Bureau (India) Limited (CIBIL) and other credit information companies (CICs)viz. a) Equifax Credit Information Services Pvt. Ltd. (ECISPL), b) Experian CreditInformation Company of India Pvt. Ltd.
(ECICIPL), and c) High Mark Credit Information Services Pvt. Ltd. (HMCISPL) to whom theDepartment is submitting individual borrower-wise credit information every month, afterdue processing. In turn, the Credit Information Reports (CIRs), drawn from the CIBIL/other CICs database, serve as important fraud prevention tool to the creditappraisal/sanction functionaries.
6.4.3. The Department has developed a webpage in SBMNEST, providing useful informationto the controlling offices and the branches. The Department has also developed thesoftware/formats of Balance Sheet, Profit and Loss Account, MOC, etc. and has hosted thesame in the SBMNEST for use by the branches.
7. SYSTEMS AND PROCEDURES:
7.1.1. Systems and Procedure Department is a special resource available at Head Officefor effective management of work organization, concerning Bank's Systems and Procedures.The department regularly reviews the systems and procedures in the area of general servicecharges and systems & procedure of the Bank.
7.1.2. As per the directions of GOI, Bank has introduced 'Simplified Uniform SavingsBank Account Opening Form' to facilitate opening of Bank accounts by migrant labour,street hawkers, and other poorer sections of the society, so as to achieve the statedobjective of universal financial inclusion.
7.1.3. The Department during the year has also reviewed the service charges structurewith regard to NEFT/SBGRPT Transactions Multi-city cheque transactions removal of chargesfor non-maintenance of minimum balance and revision of Inter-core service charges.
7.1.4. The Department has also issued guidelines for Migration to CTS-2010 StandardCheques and guidelines for Clearing of cheques, where there are no formal clearing House.
8. CONTROL AND SUPERVISION
8.1. RISK MANAGEMENT :
8.1.1. An independent Risk Governance structure is in place for Integrated RiskManagement, covering Credit, Market and Operational Risks. This framework visualizesempowerment of Business Units at the operating level, with technology being the keydriver, enabling identification and management of risk at the place of origination.
8.1.2. BASEL IMPLEMENTATION: The Bank has migrated to the Basel II framework, withthe Standardized Approach for Credit Risk and Basic Indicator approach for OperationalRisk. Bank has implemented the Standardized Measurement Method for Market Risk.
RBI has issued guidelines on implementation of Basel II Capital Regulations in India on2nd May 2012. These guidelines have become effective from April 1, 2013. The Bank hasinitiated necessary steps to comply with these guidelines.
8.1.3. CREDIT RISK MANAGEMENT:
Reserve Bank of India has issued final guidelines on implementation of Internal RatingsBased(IRB) Approach for calculation of Capital Charge for Credit Risk on 22.12.2011 andour Bank (along with SBI and other Associate Banks) has decided to apply for permission toRBI for migrating to Advanced Approach for Credit Risk under Basel II. The Bank hassubmitted its Letter of Intent to RBI in terms of the guidelines, where the Bank hasdeveloped the models for risk components - Probability of Default Estimation (PD), LossGiven Default (LGD) & Exposure at Default (EAD) and also got approved IRD compliantpolicies by the Board of Directors.
8.1.4. MARKET RISK MANAGEMENT:
Bank is using Standardized Measurement Method (SMM) for computation of capital chargeand preparations are on for migrating to Internal Models Approach (IMA) for which the Bankhas been utilizing the services of a consultant. The Bank is likely to make an applicationto RBI, for migration to IMA by 30th June 2013.
8.1.5. OPERATIONAL RISK MANAGEMENT:
Reserve Bank of India has prescribed three approaches for computing capital charge forOperational Risk, viz
(I) Basic Indicator Approach (BIA),
(2) The Standardized Approach (TSA),
(3) Advanced Measurement Approach (AMA).
Currently the Bank is following the Basic Indicator Approach. As per AMA guidelinesBanks are allowed to switch over from BIA to AMA directly. Bank is endeavoring to movedirectly to the Advanced Measurement Approach in view of the minimal changes in capitalrequirement under TSA, as compared to BIA. All the policies and documents have beenreviewed as suggested by the consultants, to meet minimum required standards. TheOperational Risk Management Department (ORMD) has been organizing training programmes forcreating awareness among officers about Basel II requirements, Operational RiskManagement, Advanced Measurement Approach for Capital Computation and Fraud PreventionMeasures.
9. BUSINESS PROCESS RE-ENGINEERING (BPR)
9.1.1. Bank has rolled-out various BPR initiatives since 2004, in consonance with thedesign principles provided by the Corporate Centre. The BPR initiatives leveragetechnology to significantly enhance customers' satisfaction and convenience. BPRinitiatives rolled out over the years have stabilized and started yielding desiredresults. So far 19 BPR initiatives have been rolled-out.
9.1.2. Based on the feedback received from the branches and the initiatives, somechanges in the processes have been brought out to improve efficiency. Negotiations withthe vendor for procuring Loan Origination Software for retail assets for all the AssociateBanks have been completed and further steps in this regard have been initiated. LOS islikely to be fully integrated with the system by June 2013, thereby further improving theefficiency and customer satisfaction.
9.1.3. Central Pension Processing Centre (CPPC) is now using SBI package forCentral Government pensions. Migration of the State Government Pensions to the new packageis completed, with a few exceptions.
9.1.4. Our Centralized Clearing Processing Centres (CCPCs) at Bangalore, Mysore andChennai undertake entire clearing work of all the linked branches. All the branches atMysore have been linked to CCPC, Mysore during the year. Service Branch, Chennai andBangalore were integrated with CCPC, Chennai and Bangalore, respectively, during the year.CCPC Mangalore has been rolled out during this year.
9.1.5. 26 new branches have been opened at Bangalore, Mysore Zone, Hubli Zone, ChennaiZone, and Delhi Region, as per BPR design principles. 46 branches have been redesignedduring renovation/shifting to new premises as per BPR design principles at Bangalore,Mysore, Chennai, Hyderabad, Mumbai, Delhi and Kolkata.
10. ASSET LIABILITY MANAGEMENT
10.1. The Asset Liability Management System has been functioning as per the guidelinesprescribed by RBI. The Asset Liability Management Committee (ALCO) of the Bank isentrusted with the task of managing liquidity and interest rate risk. The Committee meetsregularly to monitor the risks and Net Interest Margin (NIM) on an ongoing basis. Thetolerance limits for liquidity mismatches and interest rate risks are fixed in accordancewith RBI guidelines and Bank's ALM Policy, and these are reviewed by ALCO at regularintervals. Various interest rate revisions, including the revision of BPLR/Base Rate arethoroughly discussed and decided by ALCO, duly considering all the relevant factors.Possible mismatches in the Structural Liquidity projections of the Bank are also discussedwith regard to long term asset exposures and appropriate decisions taken.
11. AUDITAND INSPECTION
11.1.1. The overall objective of Internal Audit is to contribute to the effectivenessof the Internal Control System in achieving the Bank's objectives, besides providing highquality counsel to management on the effectiveness of Risk Management and Regulatorycompliance of the Bank. Towards this end, Risk Focussed internal Audit (RFIA) and IS Auditis conducted in 567 branches/BPR entities, as against a target of 566 branches/BPRentities envisaged in the Annual Audit Plan 2012-13. That apart, 39 newly opened brancheswere subjected to Spot Audit, 9 Head office Departments and 1 Staff Learning Centre, werealso subjected to Internal Audit. We also conducted Management Audit of Zonal Offices andKGB (Kaveri Grameena Bank).
11.1.2. Concurrent Audit is a major function which monitors proper follow-up of laiddown systems and procedures on a continuous basis. 142 branches/offices covering 54.42% ofdeposits and 73.62% of advances and 7 Head Office Departments were subjected to ConcurrentAudit during this year.
11.1.3. We conduct Special Revenue Audit every year to guard against income leakage.480 branches with advances levels of more than Rs.10 crs and income leakage of Rs.1 lakhand above were subjected to Special Revenue Audit (as against 423 branches during theprevious year). This year, in addition to the above, 102 branches which are underconcurrent audit and 12 BPR entities, were also subjected to Special Revenue Audit. Apartfrom this, 33 branches (Scale IV & above) were subjected to Expenditure Audit duringthe year.
The summary findings enumerated in these audit reports are appraised to the AuditCommittee of the Board and follow-up actions are ensured.
11.1.4. Structured meetings were held at quarterly intervals at Zonal Centres andhalf-yearly intervals at Regions headed by Deputy General Managers during 2012-13, tofollow up pending compliances and bring about qualitative improvement in compliances atall levels.
11.2. Credit Audit
The audit of loan appraisal and credit management for high value credit accounts withthe aim of improving the asset quality of the Bank, is undertaken by the Credit AuditDepartment. Accounts with total exposure (FB&NFB) of Rs. 2 crs and above are coveredunder Credit Audit. During the FY 2013, 1,229 loan accounts in 214 branches were coveredunder Credit Audit. Out of 1,229 accounts, 1,109 accounts (90%) were rated as low and verylow Risk accounts. With the integration of Credit Audit with RFIA, the marks awarded bythe Credit Auditor for various accounts in the branch are normalized by the internalauditors under Credit Risk Management, wherever necessary.
11.3. Vigilance :
11.3.1. Vigilance administration as an important aspect of management function iscarried out as per the directives of the Central Vigilance Commission, so as to achievegood Corporate Governance for the overall growth of the Bank.
11.3.2. To create better preventive vigilance awareness and to prevent incidence offrauds, various preventive vigilance activities like surprise visit to branches, formationof preventive vigilance committees at all major branches and BPR entities, sessions in thestaff training centers, surprise verification of cash, etc. are being undertaken by theVigilance Department.
11.3.3 In order to speed up and monitor disciplinary proceedings, the Chief Manager,General Banking/ Administration at the Zonal/Regional Office level are designated as ZonalVigilance Officers, as an extension of the Vigilance structure at Head Office.
11.3.4. As an initiative, the "Fraud Cell" has been revamped, strengthenedand christened as "Fraud Monitoring and Investigation Cell (FMIC)" and broughtunder the Vigilance Department. The FMIC will monitor certain critical areas of branchfunctioning on regular basis as part of surveillance responsibilities.
11.3.5. In accordance with the guidelines of the Central Vigilance Commission, the'Vigilance Awareness Week' was observed at all the offices of the Bank from 29th October2012 to 3rd November 2012. The focus of observing the Vigilance Awareness Week wasoriented towards "Transparency in public procurement". Seminars and meetingswere conducted, wherein information relating to evolving and effectively implementingpreventive techniques in vigilance administration, which includes transparency,accountability and fair play, objectivity and timely response in dealing with mattersrelating to public administration, etc. were explained to customers/Staff members.Besides, the role of leveraging of technology in respect of all systems and process fordeliverance of services, which has to be synchronized through use of technology, wasstrongly emphasized.
11.3.6. The Vigilance Department is maintaining liaison with outside agencies like theCentral Vigilance Commission and Central Bureau of Investigation and also effectivelycoordinating with various departments within the Bank so that vigilance cases are disposedof speedily.
12. OTHER ASPECTS
12.1. Customer Service
12.1.1. The Bank continues to accord highest priority for customer service. The Bankhas been a voluntary member of Banking Code and Standards Board of India (BCSBI) and iscommitted to provide services of a high order in a transparent manner. Bank has adoptedthe BCSBI Code of Commitment to Customers and placed the same in the Bank's website. ThePolicy guidelines relating to Collection of Cheques, Grievance Redressal Mechanism andCompensation were placed on the Bank's website for the use of the customers.
The Bank continues to take initiatives to maintain a healthy customer relationship.Bank has introduced a customer friendly complaint system, wherein the dissatisfiedcustomers can SMS "Unhappy" to 99-0002-0002, to get a feedback from thecustomers about their impressions and the areas which need improvement.
12.1.2. Right to Information
The Right to Information Act 2005 - The required authority structure for implementationof the Act has been put in place for prompt disposal of RTI requests for information,within the time frame period as prescribed under the Act. The Bank's website also carriesall the relevant information on the implementation of the Act.
Business per employee increased from Rs.8.81 crs as at March 2012 to Rs. 9.55 crs as atthe end of March 2013.
The Business per branch increased from Rs. 124.27 crs in March 2012 to Rs. 132 crs inMarch 2013.
12.3. Public Relations :
12.3.1. As a part of its strategy to give a thrust to its corporate image and brandequity, the Bank's publicity has been effectively carried out through the medium ofattractive hoardings, press advertisements, banner displays, glow sign displays atBangalore International Airport Limited, Railway Station and Bus Stations in importantcities/towns and advertisements on modern bus shelters, etc. Customers meetings wereconducted in many of the branches, especially in rural centres to project the image of theBank and publicize the advantages of thrift and timely repayment of Bank loans.
12.3.2. The hoardings installed at vantage points were periodically changed withattractive themes, greeting the public on festivals with our latest deposits/lendingschemes, revision of interest rates, etc. Special media campaigns covering the variousloan schemes, special offer in housing, vehicle, gold loans, MSME loans under CGTMSEschemes, other retail loans and new deposit schemes like Savings Bank Personal AccidentInsurance, Centenary Liquid Deposit were carried out in the print and electronic media andthrough hoardings.
12.3.3. The Bank has sponsored various State-level seminars, District utsavas, fruitand flower shows at various districts/taluks, musical, cultural and sporting events andalso sponsored Mysore Dasara festivities in a big way. On the eve of Bank Centenary year,a "Walkathon" was organised from Sree Kanteerava Stadium to Head Office andcitizens of Bangalore city and employees of the Bank participated in large numbers. TheBank also cosponsored 'Smarananjali' - tribute to Jawans - held at Rajbhavan, Bangalore.These activities have resulted in good publicity, thus enhancing the Bank's image in theeyes of the public. A LCD based video hoarding has also been put up in the Head Officecompound for improved publicity display of our products and services.
12.3.4. Bank's performance highlights, launching of new products and services, openingof new branches, ATMs, BPR initiatives and technologies achievements were extensivelycovered in print and electronic media.
12.4. Organizational Development
12.4.1. Branch Expansion: The Bank has opened 44 new branches during the year2012-13. With this, the Bank's network of branches stands at 780 spread over 15 States. Asat March, 2013, the branch network comprised of 198 Metro, 159 Urban, 179 semi-urban and244 rural branches.
12.4.2. Branches in Minority Concentrated Districts- Centers (MCDs)/ Under BankedDistricts:
During the year, the Bank has opened 2 branches and 14 branches in MinorityConcentrated Districts/Centers and Under-Banked Districts, respectively. As on 31st March2013, out of 780 branches, the Bank has 72 branches in MCDs, constituting 9.23% of thebranch network and 97 branches in Under-Banked Districts, constituting 12.44% of thebranch network.
12.5. Implementation of Official Language Policy:
In pursuance of constitutional provisions, Bank is making all-out efforts to speed uppropagation of Official Language Hindi and its progressive use in day-to-day officialwork. Bank is progressively improving usage of Hindi and Regional Language to serve thecustomers to their best satisfaction bringing transparency in administration. Efforts havealso been made to create favorable atmosphere for use of our own languages.
12.6. Community Services Banking :
12.6.1.Large organizations can no longer focus on economic performance alone, withoutpaying attention to what is happening around them. As a responsible corporate entity, itis our responsibility to be involved in social lives and activities around us. Our Bank asa caring and responsible corporate entity is alive to the social expectations andwell-being of society, and is undertaking community services activities through thenetwork of Branches, and associating with community development projects.
12.6.2. During this year our Bank actively participated in the State Bank Groupinitiative of donating water purifiers to Government/Aided schools through each of itsbranches /offices on Teachers Day-2012 and also on the eve of New Year-2013. The Bankdonated a total of Rs. 1,558 water purifiers at a cost of Rs. 140 lacs (approximate) forthe benefit of the students at Rural schools.
12.6.3. During 2012-13 our Bank has supported more than 1,644 CSR activities with afinancial out-lay of approximately Rs. 292 lacs, including contributions for purchase ofutility assets by various social and charitable institutions. The Bank has sanctioned anamount of Rs. 100 lacs to Bharata Ratna Sir M. Visvesvaraya National Training Facilitiesfor Skills for All ( BMV NTSFA) society Project, Chikballapur, for establishingInternational Level Master Trainer's Training Centre at Muddenahally.
The various CSR initiatives of the Bank are well appreciated by the community andpublic in general.
13. CORPORATE GOVERNANCE
13.1. Statement of Bank's Philosophy on Corporate Governance
13.1.1 State Bank of Mysore, as an organization driven by values, is committed topursue objectives that are in the interests of the Bank, shareholders and all stakeholders and the society at large, in consonance with best practices. The primaryobjectives of Corporate Governance are:
to protect the interests of the shareholders and all stakeholders,
to ensure maximization of long-term shareholder value in a legal and ethicalmanner.
to act in the best interests of all stake-holders like customers, employees,government and the society.
to ensure transparency, fairness, courtesy and dignity in all transactionswithin and outside the Bank, which form the hallmark of good governance.
to maximize operational efficiency in a well-defined and transparent manner andachieve excellence and benchmarks at all levels.
as custodians of public thrift, ensure safety of funds and investments.
focus on core competence areas, planned expansions and sustained growth.
The Bank believes that Corporate Governance facilitates effective management and betterinternal controls.
13.1.2. Compliance function is an integral part of corporate governance, along withinternal control and risk management process. In view of increasing complexities andsophistication in banking business, there is a critical need for management of compliancerisk arising out of compliance failures.
13.1.3. The Compliance Department ensures that the guidelines of various regulatorslike RBI, GOI, SBI, SEBI etc are complied with by the Bank in its conduct of business.
13.1.4. Department has been conducting Compliance Audit based on closed Branch InternalAudit Reports. Commissions/omissions noticed are being flagged to the branches and thecontrollers for rectification and sensitization.
13.1.5. KYC/AML Cell is a part of Compliance Department. The cell is responsible formonitoring and reporting of money laundering activities.
13.1.6. The Compliance Department ensures submission of monthly and quarterly DSB andother related regulatory returns to RBI through Off-site Surveillance Cell in addition tofurnishing back-up data for quarterly discussion with the Regulator.
13.1.7. The Bank is committed to:
Ensure that the Bank's Board of Directors meet regularly, provide effectiveleadership, exercise control over the management and monitor executive performance, withtheir blend of expertise and professionalism.
Establish a frame-work of strategic control and continuously review its efficacyto promote integrity, openness and accountability. Better disclosures and transparencywill bolster investor/ share/stakeholder confidence.
Establish clearly documented and transparent management processes for policyplanning and development, coherent business strategies, implementation and review,decision-making, monitoring control and reporting.
Ensure adherence to good business ethics and principles while carrying outBanking transactions and be responsive to the needs and interests of wide range ofconstituencies.
Practice sound financial and accounting procedures to ensure statutory andregulatory compliances and constantly review organizational structure and control systemsto respond to new challenges.
13.1.8. The Directors on the Board of the Bank and Senior Management have affirmedcompliance with the Bank's Code of Conduct for the Financial Year 2012-13. Declaration inthis effect signed by the Managing Director id furnished hereunder.
AFFIRMATION OF COMPLIANCE WITH
THE BANK'S CODE OF CONDUCT
I declare that all members of the Board and Senior Management have affirmed compliancewith the Bank's Code of Conduct for the Financial Year 2012-13.
13.2. Board of Directors
13.2.1.The Board consists of 4 Directors from State Bank of India (including theChairman), 2 Non-Executive Directors, 3 Non-Executive Shareholder Directors, (of whom onedirector elected by share-holders and 2 Directors nominated by SBI), one nominee each fromReserve Bank of India and Government of India, a Workman Director and a Non-workmanDirector.
The Board met 11 times during the year 2012-13, i.e. on 23.04.2012, 14.05.2012,28.05.2012, 25.07.2012, 21.08.2012, 27.09.2012, 20.10.2012, 26.11.2012, 28.01.2013,04.02.2013 and 19.03.2013.
13.2.2. Attendance of each Director at the Board Meetings during the year 2012-13 is asunder:
| || ||No. of Meetings held || |
|Sl. No. ||Name of the Director Sri/Smt. ||Held during his tenure ||Number of meetings Attended ||AGM ||No. of other BODs/Board Committees he is/was member Director/Chairperson |
|1 ||Pratip Chaudhuri ||11 ||5 ||Attended ||34 |
|2 ||Shyamal Acharya ||8 ||4 ||Attended ||15 |
|3 ||Sharad Sharma ||7 ||7 ||- ||1 |
|4 ||A.K.Deb ||8 ||5 ||Attended ||5 |
|5 ||Rajeev N Mehra ||3 ||2 ||- ||5 |
|6 ||K.N.Nayak ||11 ||7 ||- ||2 |
|7 ||Madhumita Sarkar Deb ||11 ||6 ||- ||- |
|8 ||D.D.Maheshwari ||11 ||3 ||Attended ||- |
|9 ||K.Gururaj Acharya ||10 ||10 ||Attended ||- |
|10 ||May Rose Steele ||10 ||10 ||Attended ||- |
|11 ||Ramasubramanian S ||1 ||1 ||- || |
|12 ||Milind S.Katti ||11 ||11 ||Attended ||- |
|13 ||Gururaja Rao ||11 ||11 ||Attended ||- |
The quorum for the Board Meeting is four Directors, of whom one shall be the Chairmanor an Officer-Director nominated by the State Bank of India.
13.3 Executive Committee of the Board
13.3.1. In terms of Section 35(1) of the State Bank of India (Subsidiary Banks) Act,1959, the Executive Committee of the Board of Directors has been constituted to considervarious business matters viz. sanctioning of credit proposals, approval of capital andrevenue expenditure, investments, administrative concerns and all other matters fallingbeyond the powers of the Executives of the Bank. The Committee comprises of the ManagingDirector, two Directors (Executive) and two Directors (Non-Executive) nominated by StateBank of India. The Committee meets at least once in a month and has met 15 times between1st April 2012 and 31st March 2013.
13.4. Audit Committee of the Board
13.4.1. In terms of directives from RBI, the Audit Committee of the Board has beenconstituted. The Committee comprises of two non official Directors, Nominee Director fromthe RBI and Nominee Director from the SBI. The quorum for the ACB meeting is 3 Directors.The chairman of ACB is a Chartered Accountant.
13.4.2. The Audit Committee of the Board provides directions and also oversees theoperation of the total audit functions in the Bank with special focus and follows up onthe following, among others.
Exposure to sensitive sectors i.e. capital market & real estate.
Inter Branch/Inter Bank reconciliation, Reconciliation of SGL/CSGL balances withPublic Debt Office of RBI.
Performance of Audit/Inspection Department,
Inspection Reports of "poorly" rated branches.
Position of house keeping (i.e. balancing of books, Nostro Accounts).
Review of violations by various functionaries in exercise of discretionarypowers.
Review of Loss Assets with balance of Rs.10 lakhs and above, outstanding formore than two years, and where legal action has not been initiated, besides quickmortality cases.
Review of inspection reports of specialized and extra-large branches.
Annual Financial Inspection by RBI - follow-up for compliance.
Review of frauds.
Statutory Audit Reports of the Bank-Follow-up for compliance.
Compliance Certificate from Compliance Officer.
Corporate Governance - Clause 49 of the Listing Agreement.
Policies with regard to Risk Focused Internal Audit and Credit Audit.
Review of annual accounts and financial results of the Bank.
Review of IS Audit Policy of the Bank,
ATM Reconciliation status at Link Office and branches.
The Committee interacts with external auditors before finalisation of the annual/halfof yearly / quarterly financial accounts and reports. During this year the Audit Committeeof the Board had met eight times overseeing Inspection and Audit function of the Bank. Thedirections of the ACB are being communicated to various operating functionaries andcompliance obtained. 99.00% of our branches have secured Well Controlled/AdequatelyControlled rating and there is no Rs.Unsatisfactory' rated branch. The number of 'NeedsImprovement' rated branches reduced from 11 as on March 2012 to 2 as on March 2013.
ACB also reviewed the Bank's status on implementing Government of India guidelines oninternal audit, IS audit and concurrent audit systems.
13.5. Risk Management Committee of the Board :
The Committee oversees the policies and strategies for integrated risk managementrelating to various risk exposures of the Bank. It consists of the Managing Director, SBINominee Director, and three Non-Executive directors. The Committee held 8 meetings duringthe year
13.6. Special Committee of the Board for Monitoring and Follow-up of High Value Fraudsof Rs. 1 crore and above.
This Committee of Directors, constituted in terms of RBI guidelines, monitors andfollows up cases of frauds involving amounts of Rs. 1 crore and above. 2 meetings of theCommittee were held during the year.
13.7. Customer Services Committee of the Board
Meetings of Customer Service Committee with two customers of a branch as members areheld at branch level. A standing committee on Customer Service and Customer ServiceCommittee of the Board are in place to oversee the implementation of Customer Serviceinitiatives / directions of Government of India/ Reserve Bank of India. Standing Committeeon Customer Service held 2 meetings during the year on 01.01.2013 & 13.03.2013.
13.8. Nomination Committee of the Board
This Committee consists of SBI Nominee Director, Govt. Nominee Director and one NonExecutive Director. This Committee is constituted to examine the "fit andproper" status of the elected Directors/the person to be elected as a Director on theBoard of the Bank. This Committee was last reconstituted on 25th May 2011.
13.9. Shareholders/Investors Grievances Committee
13.9.1. In terms of the provisions of the Listing Agreement with the Stock Exchanges, athree member Shareholders/Investors Grievances Committee has been formed comprising thefollowing members.
|Ramasubramanian S. ||Shareholder Director ||Chairman |
|K.N.Nayak ||Director ||Member |
|Sharad Sharma ||Managing Director ||Member |
13.9.2. The Committee meets once in a quarter to review/redress shareholders andinvestors complaints. The Committee has met four times during the year.
Name and designation of the
Deputy General Manager
13.9.3. STATEMENT OF SHAREHOLDERS COMPLAINTS RECEIVED AND DISPOSED OFF:
|No. of Complaints at the beginning of the year ||Nil |
|No. of Complaints received during the year ||107 |
|No. of Complaints resolved during the year ||107 |
|No. of Complaints pending at the end of the year ||Nil |
13.9.4.General Body Meetings:
Location and time , where last three Annual General Meetings held:
|Year ||AGM No. ||Date & Time ||Location |
|2009-2010 ||50 ||28-05-2010 || |
| || ||11.30 A.M. || |
|2010-2011 ||51 ||08-06-2011 || |
| || ||12.00 Noon || |
|2011-2012 ||52 ||28-05-2012 ||Central College Campus,Opp. Cauvery Guest House Palace Road,Bangalore-560 001 |
| || ||11.30 A.M. || |
1. The materially significant related party transactions that may have potentialconflict with the interests of Bank at large : Nil
2. Non-compliance by the Bank, penalties, strictures imposed on the Bank by StockExchange or SEBI or any statutory authority , on any matter related to capital markets,during the last three years: Nil
13.9.6. Means of Communications:
1. Quarterly results are published in minimum one English daily newspaper and oneKannada daily newspaper.
2. Results are normally published in Indian Express, Business Standard, FinancialExpress and Kannada Prabha.
3. Details are also displayed at the Bank's website www.statebankofmysore.co.in
13.9.7. General Shareholder information:
| ||Date 2013 4th June, 2013. |
| ||Time At 11.30 AM |
|1. Annual General Meeting ||Venue Jnana Jyothi Auditorium |
| ||Central College Campus |
| ||Opp. Cauvery Guest House |
| ||Palace Road, Bangalore-560 001 |
|2 Financial Year ||1st April, 2012 to 31st March, 2013 |
|3 Date of Book Closure ||6th May , 2011 to 12th May, 2011 (both days inclusive) |
|4 Dividend Payment Date ||Interim Dividend paid for FY 2012-13 Record Date 25-03-2013 |
|5 Listing on Stock Exchanges ||Listed on National, Bombay, Bangalore and Madras Stock Exchanges. |
|6 Stock Code ||532200 (BSE) / MysoreBank (NSE) |
13.9.8 Market Price Data
High-Low during each month in the last financial year
|Month ||Bombay Stock Exchange ||National Stock Exchange || |
| ||High ||Date ||Low ||Date ||High ||Date ||Low ||Date |
| ||Rs. || ||Rs. || ||Rs. || ||Rs. || |
|April, 2012 ||576.60 ||04.04.12 ||485.15 ||28.04.12 ||543.90 ||04.04.12 ||485.00 ||28.04.12 |
|May ||519.50 ||02.05.12 ||451.40 ||24.05.12 ||513.90 ||04.05.12 ||452.40 ||22.05.12 |
|June ||554.00 ||29.06.12 ||440.00 ||01.06.12 ||548.00 ||29.06.12 ||440.25 ||05.06.12 |
|July ||544.90 ||05.07.12 ||458.05 ||31.07.12 ||544.00 ||05.07.12 ||458.00 ||31.07.12 |
|August ||488.70 ||27.08.12 ||451.50 ||31.08.12 ||499.95 ||21.08.12 ||455.70 ||13.08.12 |
|September, 2012 ||528.70 ||27.09.12 ||454.05 ||11.09.12 ||517.45 ||20.09.12 ||456.10 ||07.09.12 |
|October ||528.50 ||04.10.12 ||471.20 ||29.10.12 ||529.90 ||05.10.12 ||462.95 ||30.10.12 |
|November ||593.00 ||30.11.12 ||476.00 ||05.11.12 ||590.95 ||30.11.12 ||496.00 ||02.11.12 |
|December ||734.65 ||11.12.12 ||571.40 ||03.12.12 ||734.05 ||11.12.12 ||576.20 ||06.12.12 |
|January, 2013 ||774.40 ||02.01.13 ||637.00 ||25.01.13 ||774.00 ||02.01.13 ||642.00 ||25.01.13 |
| February ||692.00 ||01.02.13 ||570.05 ||28.02.13 ||694.00 ||01.02.13 ||570.10 ||28.02.13 |
|March, 2013 ||635.00 ||20.03.13 ||517.00 ||25.03.13 ||604.20 ||19.03.13 ||519.92 ||26.03.13 |
There were no transactions in Madras and Bangalore Stock Exchanges during the period.
Performance in comparison to broad based indices such as BSE Sensex, CRISILindex etc.: A comparison is not attempted in view of the limited movement of the shares.
13.9.9. Registrar and Share Transfer
Integrated Enterprises ( India ) Ltd.,
2nd Floor, ' Kences Towers',
No. 1, Ramakrishna Street, North
Usman Road, T. Nagar, Chennai-600 017
Phone Nos.: 044- 28140801-03
Fax No. :044-28142479
13.9.10.Share Transfer System:
The Bank is committed to provide the best quality investor services to itsshareholders. The Bank has constituted a Share Transfer Committee of three memberscomprising a General Manager [Try&CFO] Deputy General Manager (F&A) and ChiefManager (Shares & Bonds). Approvals are obtained from the Executive Committee of theBoard of Directors / Share Transfer Committee of Executives. The Share Transfer Committeeensures that the share transfer agent attends to share transfer / transmissions promptlyand dispatch of share certificates are done expeditiously.
13.9.11 Statement showing shareholding pattern of State Bank of Mysore as on 31stMarch 2013
|Sl No ||Category of Shareholder ||No. of Share holders ||Total No. of Shares ||% ||No. of Shares held in Demater- ialised Form ||% |
|(I) ||(II) ||(III) ||(IV) ||(V) ||(VI) ||(VII) |
|A ||SHAREHOLDING OF PROMOTER AND || || || || || |
| ||PROMOTER GROUP || || || || || |
| ||Financial Institutions/Banks (SBI) ||1 ||43212078 ||92.33 ||43212078 ||94.18 |
| ||TOTAL (A) ||1 ||43212078 ||92.33 ||43212078 ||94.18 |
|B (1) ||Public Shareholding || || || || || |
|(1) || || || || || || |
|i ||Mutual funds/UTI || || || || || |
|ii ||Financial Institutions/Banks ||10 ||75358 ||0.16 ||74798 ||0.16 |
|iii ||Insurance Companies ||3 ||777808 ||1.66 ||777758 ||1.70 |
|iv ||Foreign Institutional Investors ||2 ||488 ||0.001 ||288 ||0 |
|v ||TRUST || || || || || |
|vi ||FI other || || || || || |
| ||TOTAL B (1) ||15 ||853654 ||1.82 ||852844 ||1.86 |
|2 a || || || || || |
|Bodies Corporate ||303 ||90471 ||0.19 ||81131 ||0.18 |
|Individuals || || || || || |
|(b) i Individual shareholders holding Nominal share || || || || || |
|Capital upto Rs.1 Lakh ||26780 ||2394351 ||5.116 ||1488263 ||3.24 |
|(b) ii Individual shareholders holding Nominal share || || || || || |
|Capital in excess of Rs. 1 Lakh ||8 ||203810 ||0.43 ||203810 ||0.44 |
|c Any otherClearing Member & others ||241 ||45426 ||0.10 ||44789 ||0.10 |
|TOTAL (B) (2) ||27332 ||2734058 ||5.84 ||1817990 ||3.96 |
|GRAND TOTAL - A+B (1) + B (2) ||27348 ||46799790 ||100.00 ||45882912 ||100.00 |
13.9.12. Bank's shares are available for trading compulsorily in demat form. The ISINCode allotted by NSDL/ CDSL to the Bank's Equity Shares is INE 651A01020. As on 31stMarch, 2013, 71.51% of non-promoter equity shares held by the public have beendematerialized.
13.9.13. Outstanding GDRs/ADRs/ Warrants or any Convertible Instruments, Conversiondate and likely impact on equity: Nil
13.9.15. Plant Location: Not Applicable
13.9.16. Address for Correspondence:
The Chief Manager,
Shares and Bonds Department,
State Bank of Mysore,
Head Office, Mysore Bank Circle,
K.G.Road, BANGALORE 560 254
Telephone No. Direct - 080 -
22252184 General 080 - 22353901
(10 lines) Extn. - 314
Fax 080 - 22370284
Email - email@example.com
14. BOARD OF DIRECTORS 2012-13
14.1. Shri Pratip Chaudhuri, Chairman, SBI was appointed as Chairman on the Board ofthe Bank under Clause (a) of Section 19 & sub-section (1) of Section 20 of the StateBank of India Act, 1955 (23 of 1955), w.e.f. 07.04.2011.
14.2. Shri Shyamal Acharya, Deputy Managing Director and Group Executive (A&S), SBIwas nominated as Director on the Board of the Bank representing SBI, under Section25(1)(c) of SBI (Subsidiary Banks) Act 1959, w.e.f. 01.07.2011. He resigned from the Boardw.e.f. 30th Nov'2012.
14.3. Shri A.K.Deb. Chief General Manager (A&S), SBI was nominated as a Director onthe Board of the Bank, representing SBI under Section 25(1)(c) of SBI (Subsidiary Banks)Act 1959, w.e.f. 05.09.2011. He retired from the Board w.e.f. 30th Nov' 2012 consequentupon his superannuation from his service.
14.4. Shri K.N.Nayak, Deputy General Manager (A&S), SBI was nominated as Directoron the Board of the Bank representing SBI, under Section 25(1)(c) of SBI (SubsidiaryBanks) Act 1959, w.e.f. 30.09.2011.
14.5. Shri Rajiv N Mehra, Director nominated by SBI, in consultation with GOI,appointed as Director on the Board of the Bank on 01.12.2012.
14.6 Shri. S. Ramasubramanian, a shareholder, was elected as Director on the Boardunder Section 25(1)(d) of SBI (Subsidiary Banks) Act 1959, on 15.02.2013.
14.7 Shri. K. Gururaj Acharya, Nominated by State Bank of India as a Director on theBoard under Section 25(1)(d) of SBI (Subsidiary Banks) Act 1959, having retired on09.02.2013 on expiry of the term, was re-nominated by SBI on 05.04.2013.
14.8 Shri Sharad Sharma, has been appointed under clause (aa) of SubSection (1) of Sec25 of State Bank of India (Subsidiary Banks) Act, 1959, as Managing Director w.e.f.13.08.2012 in place of Shri Dilip Mavinkurve, who retired on 31.03.2012.
M/s. Bhasin Raghavan & Co., M/s. K. P. Rao & Co., M/s. B. L. Ajmera & Co.,M/s. M K P S & Associates, M/s. Bubber Jindal & Co ., and M/s. Maharaja N. R.Suresh & Co., have been appointed as the Statutory Central Auditors of the Bank forthe accounting period ended 31st March, 2013 by State Bank of India, with the approval ofReserve Bank of India. 402 branches of the Bank were subjected to Statutory Branch Auditas against 654 branches audited last year.
The Board wishes to place on record its sincere appreciation of the patronage andsupport of the customers, shareholders, members of staff, Employees' Union and Officers'Association for their contribution to the overall development of the Bank.
By the Order of the Board