bank of maharashtra Directors report

Your Directors have pleasure in presenting the Annual Report of the

Bank with the audited Balance Sheet, Profit & Loss Account and the

Report on Business and Operations for the year ended March 31, 2023.

1. MANAGEMENT DISCUSSION AND ANALYSIS

Economic and Banking Scenario 2022-23

Indian economy continues to show resilience amid global uncertainties. The uncertainty caused by the evolving global scenario is weighing heavily on the outlook for economies across the globe. Amidst this, the Indian economy remains a bright spot and has positioned itself to grow at 7% in 2022-23, making it the fastest growing major economy in the world.

The banking sector in India has responded in equal measure to the demand for credit. The aggressive supply of credit by the banking sector has been triggered by their improved financial health as that of the corporates, well supported by the government through adequate budgetary support. Macro-stress tests conducted by RBI for credit risk reveal that the banks are well-capitalized and would be able to comply with the minimum capital requirements even under adverse stress scenarios. Private consumption, more capital expenditures, a stronger corporate balance sheet, increased financing to small enterprises, and the return of migrant workers to cities all contributed to growth.

Outlook

The recovery from the pandemic was relatively quick, and growth in the upcoming year will be supported by solid domestic demand and a pickup in capital investment. Strong macro-economic fundamentals, combined with reform-oriented approach of the Government are building Indias economic growth trajectory. Credit growth has been broad-based across sectors, with retail credit driving the growth. Credit to agriculture and allied activities gained momentum through concessional institutional credit and higher agricultural credit target set by the government. Industrial credit growth has been buoyed by a pick-up in credit to MSMEs, assisted by the benefits accrued from the effective implementation of the Emergency Credit Line Guarantee Scheme (ECLGS) and the support provided by the governments production-linked incentive scheme.

The growth in credit offtake is expected to sustain, and combined with a pick-up in private Capex, will usher in a virtuous investment cycle. The credit upcycle will also be aided by constant monitoring of the risks in the financial system by the regulators and their efforts to contain them. Strong macroeconomic fundamentals will underpin the return of global capital flows to India once the fog of uncertainty lifts.

2. PERFORMANCE HIGHLIGHTS 2022-23 i. Total Business of the bank has increased from Rs.3,37,534 Crore as on 31.03.2022 to Rs.4,09,202 Crore as on 31.03.2023. Business of the Bank showcased annual growth of 21.23%. ii. Total deposits of the bank increased from Rs. 2,02,294 crore as on 31.03.2022 to Rs. 2,34,083 crore as on 31.03.2023. Total deposits have showcased annual growth of 15.71%. iii. CASA deposits have increased from Rs. 1,17,035 crore as on 31.03.2023 to Rs.1,24,961 crore as on 31.03.2022 showcasing annual growth of 6.77%. iv. Gross advances have increased from Rs.1,35,240 crore as on 31.03.2022 to Rs.1,75,120 crore as on 31.03.2023. Gross Advances have shown year on year growth of 29.49%. v. Operating Profit increased 25.81% to Rs.6099.21 crore in year ended 31.03.2023 from Rs. 4847.87 crore in year ended 31.03.2022. During the same period Net Profit increased 125.96% to Rs.2602.03 crore from Rs. 1151.54 crore.

2.1 Sectoral Deployment of Credit

(Amt. in Rs. crore)

Percentage to Total Outstanding	O/s as on 31.03.2023	Percentage to total O/s	O/s as on 31.03.2022	Percentage to total O/s
Industry	59,295.32	33.86%	44,045.15	32.57%
Of which
i. Infrastructure	34,127.30	19.49%	21,643.82	16.01%
ii. Chemicals & Chemical Products	1,376.06	0.79%	1,357.02	1.00%
iii. Petroleum (Including Natural Gas)	1,973.91	1.13%	600.74	0.44%
iv. Iron and Steel	1,304.40	0.74%	566.80	0.42%
v. NBFCs	16,909.57	9.66%	11,132.79	8.24%
vi. Engineering	1,935.22	1.11%	1,235.38	0.91%
vii. Construction	650.90	0.37%	128.57	0.10%
viii. Other Industries	1,017.96	0.58%	7,380.03	5.46%
Agriculture	23,399.66	13.36%	18,968.15	14.02%
MSME	33,243.62	18.98%	26,279.08	19.43%
Housing	25181.06	14.38%	21103.06	15.60%
Education	1828.64	1.04%	1458.85	1.08%
Exports	1,715.19	0.98%	1,385.01	1.02%
Commercial Real estate	2,247.53	1.28%	1,253.84	0.93%
Gross Advances	1,75,120.00		1,35,240.00

2.2 Asset Quality and NPA Management

The Bank has set up "Asset Recovery Cells (ARC)" at all zonal offices to ensure focused efforts for upgradation and NPA recovery.

Thirteen Asset Recovery Branches (ARBs) have also been set up across the Banks Zones for large NPA accounts, more particularly where legal actions are in progress so as to make focused follow up.

Further, Bank has established Stressed Assets Management Vertical by way of a separate department at Head Office under which Bank has started 4 (four) Stressed Assets Management (SAM) branches in Delhi, Mumbai, Hyderabad and Pune, where NPAs with balance of Rs.5 crore and above are monitored. Focused follow up is undertaken to improve NPA recovery.

The Loan Tracking Cell has been established where Bank undertakes telephonic follow up on daily basis with borrowers of stressed accounts / slippages and repayment of overdues is insisted. This will result in improving recovery and upgradation of NPAs.

The Bank has also set up separate Cells at its Head Office for identificationof Wilful Defaulters, gearing up the actions under DRT / SARFAESI Acts.

Bank has been implementing Suo Motu non-discriminatory and non-discretionary One Time

Settlement (OTS) Schemes. Monitoring of the performance under the schemes is undertaken from

Recovery Department, Head Office on daily basis.

During FY 2022-23 the Bank introduced following such OTS schemes:

1. Maha Sahyog 2022-23 - Scheme for the settlement of NPA accounts in Sub Standard (for Agri Loans only), Doubtful-I, Doubtful-II, Doubtful-III, Loss, TWO and RWO accounts having Ledger Balance up to Rs.1.00 crore as of 31.03.2022. This scheme is effective from 01.06.2022.

2. Maha Sandhi 2022-23 - Scheme for the settlement of NPA accounts in Doubtful-I, Doubtful-II, Doubtful-III, Loss, TWO and RWO accounts having Ledger Balance above Rs.1.00 crore and up to 50.00 crore as of 31.03.2022 and effective from 01.06.2022.

3. Maha Samvedna 2022-23 - Scheme for the settlement of NPA accounts in Sub Standard, Doubtful-I, Doubtful-II,

Doubtful-III, Loss and TWO accounts having Customer Ledger Balance upto Rs. 50.00 Lakhs where Individual

Borrower/ Co-Borrower/ Proprietor is deceased. This scheme is effective from 01.06.2022.

Bank has also made intensive follow up with the defaulting borrowers through visits, letters, notices, Recovery Camps, Lok

Adalats, Mahabank Adalats, actions under SARFAESI/ DRT Act. Services of Recovery Agents / Resolution Agents are engaged so as to have an early resolution. The Bank has also initiated action under the provisions of the Insolvency & Bankruptcy Code

2016 against various large NPA borrowers.

Position of Non- Performing Assets was as under: (In Rs.Crore)

Particulars	31.03.2023	31.03.2022
Gross NPA	4334.00	5327.21
% to advances	2.47%	3.94%
Net NPA	435.18	1276.57
% to advances	0.25%	0.97%
Cash Recovery	2145.01	2134.73

2.3 Foreign Exchange Business

Currently, the bank has 50 "B" Category Branches across the country catering to the international business needs of the customers of the Bank apart from Treasury and International Banking Treasury and International Banking

Division (TIBD) at Mumbai as "A" category Branch. The

Merchant Business for FY 2022-23 stood at Rs. 43,075.85 crore. The performance during FY 2022-23 can be seen below:

			(In Rs. Crore)
Particulars	2022-23	2021-22	Percentage of (+/-)
Total FEX Business Turnover	6,37,690.36	5,55,982.93	14.70%
Merchant Business Turnover	43,075.85	34,251.01	25.77%
Profit in FEX Business	79.42	129.48	(38.66%)

2.4 Investment

The breakup of Investments into SLR & Non-SLR investments is given below:

The Gross Investments as on 31.03.2023 stood at Rs 69,215.26 crore, of which Rs 55,866.92 crore are SLR securities and Rs. 13,348.35 crore are Non-SLR Securities. The excess SLR securities as on 31.03.2023 stood at Rs 16,837.79 crore.

The net investments (net of provisions) stood at Rs 68,866.95 crore as on 31.03.2023 as compared to Rs 68,589.97 crore as on 31.03.2022. Investments under Held to Maturity (HTM) category consist of 74.90%, while Available for Sale (AFS) & HFT comprised of 25.10% of total investment portfolio as of 31.03.2023. The net interest income from investment activity decreased to Rs 4,266.92 crore from Rs 4,387.93 crore during the last year (down by 2.76%).

The Non-Performing Investments stood at Rs 28.82 crore as on 31.03.2023.

2.5 Merchant Banking

The Bank handled 23 issues (previous year 30 issues) of

Commercial paper amounting to Rs 29,920 crore (previous year Rs 30,950 crore) for its clients as an Issuing and Paying Agent (IPA) during FY 2022-23

2.6 Borrowings

The borrowing of the Bank as on March 31, 2023 stood at Rs. 10,765.66 crore including re-finance as under:

		(Rs in Crore)
Particular	Amount as on 31.03.2023	Amount as on 31.03.2022
Total Borrowing	10,765.66	7,746.74
of which Borrowing RBI under LAF	500.00	500.00
of which Borrowing Market REPO	0.00	0.00
Of which Borrowing TRePS (G-Sec)	3,997.76	3,194.64
Of which Refinance from
NABARD	0.00	0.00
EXIM BANK	0.00	0.00
NHB	0.00	0.00
MUDRA	242.94	139.00
SIDBI	1,155.24	17.35
Borrowings in the form of Bonds & debentures capital instruments	4,833.70	3,895.70
Borrowings outside India	36.02	0.00
Others	0.00	0.05

2.7 Depository Services

Bank is Depository Participant (DP) of Central Depository Services of India Ltd. (CDSL) since

September 1999.

The Bank is also providing Basic Services DEMAT Account Facility (BSDA).

Bank is providing ASBA through net-banking and UPI.

2.8 Bancassurance

Bank is corporate agent for carrying out

Bancassurance business under all three segments i.e. Life Insurance, General Insurance and Health

Insurance.

Performance during FY 2022-23

(Amt. in Rs. Cr.)

Insurance	No. of Policies	Premium	Commission
Life	12,284	83.06	18.45
General	1,51,459	55.63	7.39
Health	50,467	68.50	9.85
Total	2,14,210	207.19	35.69

Company wise insurance business from 01.04.2022 to 31.03.2023:

(Rs. In Crore)

	Insurer	NOP	Premium	Commission
Life	Life Insurance Corporation	1,107	10.62	1.46
Insurance
	Aviva Life Insurance	10,622	70.35	16.99
	Aviva Life Insurance - Group Credit	555	2.09
General	United India Insurance Company	19,784	9.97	1.81
Insurance
	Future Generali	1,31,675	45.66	5.58
Health	United India Insurance Company	14,427	24.80	3.86
Insurance
	Manipal Cigna Health Insurance	36,040	43.70	5.99

2.9 Government Business

During FY 2022-23, 5,00,644 challans of Direct Taxes and

27,030 challans of Indirect taxes were collected by the branches. Total commission to the tune of Rs 0.58 crore was received on tax collection business in current year.

As a service to senior citizens, the Bank is processing and crediting monthly pension payments to Central Government, Defence, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the

Year 2022-23 is Rs. 10.03 crore.

Bank has opened 2,08,286 new PPF accounts, 16,690 new SCSS accounts and 19,370 new accounts under Sukanya Samruddhi Scheme in FY 2022-23. Commission earned by the bank for the year 2022-23 is Rs. 4.49 crore.

2.10 Income, Expenditure and Profitability

The total income of the Bank stood at Rs. 18178.73 crore in FY 2022-23 as compared to Rs. 15,671.70 crore in FY 2021-22. The detailed income/expenditure components are as under:

			(Rs. in Crore)
Particulars	2022-23	2021-22	Variation
			(in %)
Interest / discount on advances / bills	11,485.82	8,231.56	39.53
Income on investments	4,266.92	4,384.69	(2.69)
Interest on interbank lending & other Interest	145.72	402.97	(63.84)
Total interest income	15,898.46	13,019.22	22.12
Non-interest income	2,280.27	2,652.48	(14.03)
Total Income	18,178.73	15,671.70	16.00
Interest on deposits	7,186.44	6,458.17	11.28
Particulars	2022-23	2021-22	Variation
			(in %)
Interest on borrowings	59.77	30.91	93.37
Other Interest expenditure	911.47	485.74	87.65
Staff expenses	2,058.28	2,070.59	(0.59)
Other Operating expenses	1,863.56	1,778.42	4.79
Total Non-interest expenses	3,921.84	3,849.01	1.89
Total Expenses	12,079.52	10,823.83	11.60
Operating	6,099.21	4,847.87	25.81
Provisions and Contingencies	3497.17	3,696.33	(5.39)
Net Profit	2602.03	1,151.54	125.96

2.11 Financial Ratios

The various financial parameters of the Bank during FY 2022-23 can be seen below:

Particulars	2022-23	2021-22
EPS (Rs)	3.87	1.72
Cost to Income Ratio (percent)	39.14	44.26
Return on assets (percent)	1.10	0.55
Return on equity (percent)	20.38	11.45
Book value per share (Rs)	18.97	15.12
Profit per Branch (Rs.in lakh)	118.11	56.95
Profit per employee (Rs.in lakh)	20.05	9.05
Business per Branch (Rs.in crore)	185.29	166.65
Business per employee (Rs.in crore)	31.53	26.53
Interest income as per cent to Average working funds	6.70	6.26
Non-Interest income as per cent to average working funds	0.96	1.27
Net Interest Margin (percent)	3.56	3.15
Operating Profit as per cent to average working Funds	2.57	2.33
Staff expenses as a percent to average working funds	0.87	1.00
Dividend (percent)	13.00	5.00
Net worth (Rs. in crore)	12,765.19	10,175.85
CRAR (%)	18.14	16.48
Of which, Tier I CRAR (%)	14.25	12.38

2.12 Capital

Bank has raised Rs.1590 Crore in two tranches, Tier 1 Bond amounting to Rs. 710 Crore in the month of September 2022 & Tier 1 Bond amounting to Rs. 880 Crore in the month of December 2022.

Bank has raised Rs. 348 Crore, Tier 2 Bond in the month of December 2022.

2.13 Net worth

The Banks Net Worth stood at Rs. 12,765.19 crore as on

31.03.2023 as against Rs. 10,175.85 crore as on 31.03.2022.

2.14 Capital Adequacy Ratio

The Capital Adequacy ratio stood at 18.14% as on 31.03.2023, against the minimum requirement of 11.50% (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 capital ratio stood at 12.66%.

2.15 Dividend

The Board of Directors of your Company has recommended a dividend of Rs.1.30 per equity share (i.e.13%) of Rs. 10/- each on the paid-up Share Capital of the Bank for the financial year 2022-23. The dividend shall be paid to the members, whose names appear in the Register of Members as well as the Beneficial Ownership Position provided by NSDL/CDSL as at the close of business hours on 23rd May, 2023. The Board of Directors of the Bank in their meeting dated 24.04.2023 has recommended dividend of Rs. 1.30/- (i.e.,

13%) per share on equity shares of the Bank for the Financial year 2022-23. Further it is informed that the Record Date for determining the eligibility of members entitled to receive dividend on equity shares is Tuesday, 23rd May, 2023. Dividend, if approved by the shareholders of the Bank, shall be paid after the AGM to those shareholders, whose names appear in the Banks

Register of Members/ Register of Beneficial Owners maintained by the Depositories viz., National Securities Depository Limited and Central Depository Services (India) Limited as at the close of business hours on Tuesday, 23rd May, 2023.

3. RESOURCES: BANKING OUTLETS, HUMAN RESOURCES, IT INFRASTRUCTURE, CUSTOMER RESPONSIVENESS AND OTHERS: 3 .1 Banking Outlet/ ATM Network As on 31.03.2023, the Bank had 2,263 banking outlets spread across all the States and six union territories as compared to 2,072 as on 31.03.2022. The banking outlets comprised of 2,203 branches and 60 fixed point outlets served by Bank Mitras, named as Customer Service Point

(CSP).

During the year ended 31.03.2023 the Bank opened 199 new branches and 10 fixed point outlets served by Bank Mitras, named as Customer Service Points (CSP). In the same period, 10 branches were converted into CSP and 8 branches were merged with another branches. During the branch conversion and merger utmost care was taken to ensure that customers are not put into any inconvenience in availing banking services.

The branch network includes specialized branches in the area of Foreign Exchange, Government Business, Treasury and International Banking, Industrial Finance, Micro Small and Medium Enterprises, Hi-tech agriculture etc. Area wise classification of branches as on 31.03.2023 is as under:

Sr. No. Classification	As on 31.03.2023	As on 31.03.2022
1 Rural	606	611
2 Semi-Urban	602	511
3 Urban	476	412
4 Metro	519	488
Total	2,203	2,022

ATM / CRM Network

The Bank had 2,330 automated teller machines (ATMs) and cash recycler machines (CRM) as on 31.03.2023 as compared to 2,128 as on 31.03.2022.

	31.03.2023	31.03.2022
Offsite	420	429
Onsite	1,910	1,699
Total	2,330	2,128

3.2 Human Resources Management

MAHABANK believes in and acknowledges the critical role of its employees in achieving its present and future organizational goals. The Bank continuously undertakes multiple initiatives for strengthening and developing its human capitals. The Bank has put in place comprehensive HRM Policies that provides the road map for acquiring appropriate & need based human resources, its development through training, job enrichment, reward and recognition for better performance, career progression, welfare and retention.

(i) Manpower Strength:

The total Manpower of the Bank as on March 31, 2023 stood at 12,977. The following are the details of category of employees.

CADRE	OFFICERS	CLERK	SUBSTAFF	PTS	TOTAL
COUNT	7358	3648	1964	7	12977

(ii) Gender Diversity:

Out of the total workforce, the representation of women is 27.10% spread across all geographies and levels of hierarchy.

CADRE	OFFICERS	CLERK	SUBSTAFF	PTS	TOTAL
MALE	5324	2384	1745	7	9460
FEMALE	2034	1264	219	0	3517
TOTAL	7358	3648	1964	7	12977

(iii) Recruitment :

During FY 2022-23 the Bank has recruited 1034 employees comprising of 443 Officers in Scale I, 333 officers in Scale II, 54 in Scale III cadre, 2 officers in Scale V cadre and 191 Clerks. With these recruitments, Bank has become younger with average age of employee coming down to 38 years. Upon completion of tenure of existing Internal

Ombudsman (IO), Bank has appointed (IO) to strengthen the Internal Grievance Redressal Mechanism.

(iv) Promotion:

Promotion is one the key motivating factors for the employees as it brings higher responsibilities, monetary benefits and status. This promotion process is carried out every year based upon Board approved Promotion policy which is formulated in line with GOI & other regulatory guidelines and ensuring availability of adequate employees at each level keeping in view the business growth of the Bank along with availability of number of employees for shouldering responsibilities at higher levels. Bank completed the promotion process in a fair & transparent manner. The number of employees promoted are as under

JMGS-I	MMGS-	MMGS-III	SMGS-IV	SMGS-V	SMGS-	Clerical	Sub-Staff
TO	II to	TO	TO	TO	VI TO	to	/ PTS to
MMGS-II	MMGS-III	SMGS-IV	SMGS-V	SMGS-VI	TEGS-VII	JMGS-I	Clerical
153	408	76	41	18	6	203	36

(v) Reservation Cell:

As per Government of Indias guidelines, reservations are provided to Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and Persons with Disability (PWD) candidates in Direct Recruitment.

Reservations for SC/STs in promotions are provided as per

Government guidelines. Special Cells at Head Office and all Zonal Offices are functioning to monitor the implementation of the reservation policies and to redress grievances of

SC/ST/OBC & Physically challenged employees as well as ex-servicemen. The Bank has designated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all Zonal Offices.

Caste / Cadre	GEN	OBC	SC	ST	EWS	TOTAL	Differently abled	Ex- Serviceman
Officers	3467	2065	1176	546	104	7358	176	38
Clerks	1759	923	618	317	31	3648	102	152
Sub- Staff	638	471	657	198	0	1964	17	123
PTS	4	2	1	0	0	7	0	0
Total	5868	3461	2452	1061	135	12977	295	313

Necessary efforts were continued to be made to resolve all the grievances of the various reserved categories and to maintain a cordial relation with them as also to assist in their career progression.

(vi) Major HR initiatives: a) Online Employee Grievance Redressal Module:

For prompt settlement of genuine grievances of employees and to maintain a healthy employer-employee relationship, an Employee Grievance redressal on-line portal was developed which will facilitate resolving the grievances in T+2 days related to employee benefits, service regulations etc. Efforts has taken by HRM Department to develop a dedicated and integrated software to resolve the grievances within minimum time in HRMS. b) Appointment of Nodal Officer for Banks retired staff & Conducting Staff Pensioners Adalat : In order to resolve the grievances & respond to the queries of retired employees, Bank has appointed a nodal officer at Head Office level. In addition to the above, for speedy disposal of grievances, bank decided to conduct Staff Pensioners Adalat which will act as platform, for Staff pensioners, to settle their issues. It is conducted on the 1st Friday of every month. c) Improvisation of Staff Schematic loans & other Benefits:

• Staff Housing & Vehicle Loan was amended as per market practice & to provide more benefits to employees. The newly joined officers in scale II & above cadre with prior banking experience are eligible for staff housing loan & staff vehicle loan from the date of joining in the Bank and employees who opted voluntary retirement are also allowed to continue staff housing loan upto the age of 75 years.

To promote e-vehicles and to reduce the carbon foot print Bank has also considered purchase of e-Vehicles on the same terms and conditions as per existing staff vehicle loan scheme. Employees can avail this facility with concessional rate of interest (less than 0.50% as applicable to vehicle loan). Bank is also paying reimbursement towards maintenance of E-vehicle on declaration basis.

d) Revision in residential leased accommodation

Facility to Officer : In view of rise in rental value of residential accommodation and with a view to ease the distress arising out of scarcity of banks owned accommodation and financial burden borne by the officers due to sharing a portion of leased rent, Bank has enhanced the existing rental limit and enhanced the additional limit of rent for leased accommodation to the officers working as Branch

Managers / Zonal Heads over and above the ceiling, Society Maintenance charges and brokerage facility is extended to all areas / centers in addition to the existing areas of Major-A cities and Area-I places.

e) Reimbursement of House Maintenance Expenses to Employees: In order to enable the employees to maintain the house, Bank has introduced a scheme of Reimbursement of House Maintenance Expenses to Employees.

f) Scheme for reimbursement of expenses incurred by the employees towards high speed internet Connection: With a view to enable faster communication, a scheme named reimbursement of expenses incurred by the employees towards high speed internet connection over and above their mobile bill reimbursement was introduced

g) Staff Welfare Schemes: A welfare committee has been constituted among top Management along with union office bearers, wherein fund (3% of net operating profit of the financial year) is allocated for welfare of the employees & is utilized through various schemes.

Introduction of Scheme of reimbursement towards expenses incurred to avail Cr che Facility: Bank has introduced a scheme for reimbursement of the expenses incurred towards cr che facility to all female employees of the Bank on declaration basis under staff welfare measure. For all women staff having child above 6 months & below 3 years of age are eligible to claim the reimbursement on declaration basis.

Introduction of Employees Group Personal Accidental Policy: The scheme of Employees Group Personal Accidental Policy was introduced for all the serving employees of the Bank as a welfare measure. Under the scheme, Employees are covered accidental death insurance of Rs 40 Lakhs, Permanent Total Disability of Rs 40 Lakhs, Permanent Partial Disability up to of Rs 20 Lakhs & Air Accident Insurance Death of Rs 1 Crore.

Bank has paid canteen subsidy & Entertainment allowance to all employees

Reimbursement towards Self-care and Well-being: Considering the importance of Self-care and well-being of the employees which is one of the factors towards ensuring a healthy and happy workspace, Bank has introduced the scheme of ‘Reimbursement towards Self-Care.

h) Employee Engagement - Enhancing Employee

Connect & Improving Happiness Index : In order to enhance the employee connect & to improve the happiness index amongst employees, bank has issued suitable communication for all authorities

& employees to follow certain steps at all levels to ensure a conducive environment for well-being of employees such as timely approval of employee benefits / leave, quick redressal of staff grievances

/ complaints, scheduling employee connect sessions on a day in every month post banking hours/during lunch hours wherein employees are to be motivated to express their views/concerns/issues/ suggestions, arranging informal events or re-creational activities or get-together periodically in small groups by involving families of the employees, rewarding top performers etc. In response to our communication, various zones have arranged sports activities among staff members, town hall meetings, reward & recognition ceremonies for the best performers, recreational activities with staff & their family members, requisite training interventions / motivational sessions etc.

i) Review of Scheme for appointment on Compassionate grounds & revision in the ex-gratia amount payable to the family dependent/s in lieu of appointment on compassionate ground :

Bank has revised the scheme of appointment under compassionate ground in line with regulatory guidelines .The revised model of scheme for payment of ex-gratia amount in lieu of compassionate appointment which was adapted by the Bank as per IBA guidelines dated 19th July, 2007 has been revised in order to provide financial relief to the family of the deceased employee and tide over the crisis brought about by the pre-mature death of the bread earner of the family. The above modifications families of our employees, who have served the Bank and help them to tide over financial burden being faced by the family in view of the demise of the earning member. No. of compassionate appointments made during FY 2022-23 is as under –

Cadre	No. of Employees
Clerk	27
Substaff	07
Total	34

LEARNING & DEVELOPMENT:

In order to thrive in the ever-changing and competitive landscape, it is important to be resilient and agile and to constantly upgrade the skill-sets of all the employees. Bank has delved deeper into this thought and created a new Learning and Development (L&D) vertical in FY

2022-23. L&D vertical has come into inception with the idea of instilling a culture of learning in our bank and ensuring that our employees are highly skilled, proficient and equipped with the latest trends and technologies. The learning infrastructure facilitates personal and professional development of all the employees in accelerating growth trajectory of the Bank and to meet the future challenges and overcoming them with confidence and resilience.

In the previous year, L&D Vertical, comprising of the Staff Training Colleges, has undertaken analysis, design, development, implementation and evaluation of the training programs for our employees. In addition to the regular training areas, Bank has conducted multiple specialized trainings for employees in security management, cash management, program for legal recovery, program for

ZVOs, new AFOs, micro-credit, Forex, DZM Leadership Conclave, credit management and infrastructure financing, credit monitoring, risk, business development, IT trainings, ESG etc. Numerous locational trainings have been conducted to expand the participation across geography and nearly 3,500 employees were trained across cadres- sub-staff, cashiers, differently-abled employees, for LLMS and gold loan etc.

Realizing the imperative of building a strong pipeline of leadership in the bank, Talent Development Programs were conducted for executives (AGMs and DGMs) of the

Bank in FY 2022-23 at various premier institutions such as IIM Ahmedabad, Bangalore, Calcutta, Indore, Kozhikode,

Lucknow, XLRI Jamshedpur. In addition to this, Leadership

Development Programs have been conducted for Chief Managers at NIBM, Pune and State Bank Academy, Gurgaon.

Bank is optimizing the use of ICT for imparting learnings and maximizing the participation coverage through various podcasts, webcasts, webinars, online quiz etc. to constantly update our employees on the latest technological changes and offerings of the Bank.

Cadre-wise Break up of Employees trained during the period 01.04.2022 to 31.03.2023 are as under-

Cadre	Number of Programs	No. of Program Training Days	Number of Employees Trained
OFFICERS	172	570	5,856
CLERKS	88	225	2,624
SUB-STAFF	58	109	1,456
Total			9,936

3.3 Technology Initiatives: A. Customer Centric Initiatives:

During FY 2022-23, Bank has taken multiple initiatives toward service delivery to its customers for convenience:

In line with RBI guidelines, Bank has launched

Account Aggregator facility which enables customers to easily access and share their financial data in digital space, ensure seamless transactions & eradicates the possibility of frauds related to financial data.

Bank has ordered 600 Cash Recyclers which would substitute existing OPEX ATMs at branches and cater to branches opening under ABEP (Annual Branch Expansion Plan) of the Bank.

The automated DCSS (Deceased Claim Settlement System) Portal named "SUVIDHA" was launched which is customer centric and offers benefits like improved and measurable TAT (Turn-Around-Time) at each stage, faster settlement of claims, tracking of a deceased claim application by customers etc.

Bank had implemented VKYC & Re-KYC facilities that benefits customers to update their KYC digitally without visiting branches and waiting in long standing queues.

Online payment of EPFO through Internet Banking was facilitated to corporate customers for payment of the pension fund contribution to Employee Pension Fund Organization.

Bank has implemented TIN 2.0(Tax Information Network) under PRAKALP project. Bank has integrated with Prakalp which facilitates for advance tax payment to customers through Internet Banking & OTC (Over The Counter).

Bank could implement Parent-Multichild and Parent- Grandchild functionality in SNA accounts to support Govt. transactions with daily reconciliation.

The Scheme-wise Bank Management System (SBMS) under IFMS applications of Odisha Govt.

& West Bengal Govt. are integrated with Bank

of Maharashtra for enabling Account validation of Institutional Agencies and beneficiaries (BoM Account holders) in automated and secured channel, facilitating the easy way of fund release on real time basis from Govt. Agencies to beneficiary & tracking and monitoring financial transactions including scheme wise fund disbursement.

Digital Lending:

Bank has put in place a comprehensive Digital

Lending Policy based on the RBI guidelines for onboarding of Digital Lending Solutions and for making effective and faster credit decisions while sanctioning the loans and advances through digital mode.

In order to boost Digital Lending Portfolio, Bank has launches "Mahabank Twarit Personal Loan" where customer can apply online for personal loan and get the sanction and disbursement without visiting the branch.

Bank has formed a strategic partnership with credit Information Company to provide a comprehensive suite of products and services to achieve target setting, better business growth, cross-sell & up-sell, fraud prevention, quality credit appraisal, better credit monitoring, better recovery, monitoring of target vs achievement and to maintain quality assets portfolio.

B. Process Centric Initiatives:

Following process related enhancements have been achieved through introduction of technology:

A new Business Dashboard named "Maha Darpan" and "TAT Monitor" has been implemented for further enhancement of decision making.

Bank has developed and launched an in-house advanced Mobile Application, named as ARJUN (i.e Automated Remote Junction for Monitoring of Assets Under Stress), which will serve the purpose of a handy tool to the Staff members for effective

Credit Monitoring and collection actions directly through their mobile phone.

Bank is implementing CKYC mobile application to provide real time and rich experience for scanning of images with quick response for branch staff. This would be an extension to on-boarded CKYC solution, which is a web portal. The mobile application can be easily and smoothly integrated with APIs and CBS.

C. Infrastructure & Regulatory Initiatives:

Bank has completed its Private Cloud "Nakshatra" setup at Data Centre and has already migrated its 50% applications to On Prim Private cloud infrastructure. It includes Cloud Hyper Converged

Infrastructure with Virtualization software and

Network Attached Storage.

To strengthen the security architecture, Bank has initiated "Kavach" initiatives, and implemented different industry established latest security tools like DLP (Data Leak Prevention), DAM (Database

Access Monitoring), EDR (Endpoint Detection and Response), WAF (Web Application firewall),

FRA (Firewall Rule Analyzer), EFRMS (Enterprise Fraud Risk Management Solution), Deception Solution (Honeypot Solution) DICT, SSLO etc to name a few.

Migration to Centralized CBS: Bank has migrated all its branches on centralized CBS system in B@ncs 24 which has the following features: a) Centralized Architecture b) Cost Effectiveness c) Multiple Browser Compatibility d) Increased Operational Efficiency e) Enhanced Search Features

To minimize VSAT dependent branches, Bank has on-boarded Service Provider for upgradation of bandwidth for approx. 4% of its total branches with VSAT link. The upgrade from 512 Kbps to 4 Mbps will enhance the working by facilitating smooth functionality of various applications.

Bank has successfully upgraded its EFT/IST Switchs hardware and software which was initially implemented by the Bank. The upgraded switch is with higher processing capabilities, card tokenization and scalable to meet the transaction volume over next 5 years.

Bank has migrated Aadhar Enabled Payment System (AePS) services from ISO message format to more versatile with customizable API based XML messaging as per NPCI guidelines. The new

XML platform will allow more data carrying capacity to facilitate Finger Image Record(FIR) transactions. It also allows Bank to have a common code for multiple NPCI platforms, enabling optimization of resources and making the ecosystem future-ready through API based solutions.

Bank is in the process of appointment of a reputed Technology Consultant who will assist Bank for Digital Transformation which includes enhancement of Digital and Technology platforms for a) Compliance b) Business Sourcing & c) Customer Service Convenience.

Bank has shifted its Disaster Recovery site to state-of-the-art facility with Tier III & above Data

Centre standards successfully. Further, Bank is in the process of shifting its Data Centre & Near Site DR to state-of-the-art facility with Tier III & above Data

Centre standards in the FY 2023-24.

D. Awards & Recognitions on Technology front:

Bank has been awarded with ‘Best Bank under award category –‘Technology Talent on 03.12.2022 during IBA Technology Awards 2022.

Bank has been declared ‘Runner up under award category –‘Digital Financial Inclusion on 03.12.2022 during IBA Technology Awards 2022.

3.4 Customer Centric Initiatives taken by the Bank i. The Bank has pursued high standards of customer service to ensure customer satisfaction throughout the year by implementing all major recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee. As a member of Banking

Codes and Standards Board of India (BCSBI), the

Bank has adopted Code of Banks Commitment to Customer and Banks Code of Commitment to MSMEs. ii. Duly documented policies approved by the Board, on "Deposit", "Collection of Cheques", "Redressal of Grievances", "Compensation", "Operational Procedure for Settlement of Claims of Deceased Depositors" and "Customer Rights Policy" are in place. iii. Customer Service Committees are formed at all branches and their meetings are conducted regularly on monthly basis. The Standing Committee on

Customer Service at Head Office and Zonal Level

Customer Service Committees at Zones, meet regularly to address and review various customer related matters and to take steps, for an improvement, on an ongoing basis. iv. The Committee of the Board on Customer Service meets on quarterly basis to monitor the quality of the customer service, redressal of customer grievances and to ensure customer satisfaction. v. Bank has well established grievances redressal machinery in place to respond promptly to customer grievances. The Bank has internet based mechanism, Standardized Public Grievances Redressal System

(SPGRS) for lodging of complaints or to give suggestions/ feedback on services by the customers and for providing acknowledgement and status of their feedback/ complaints as per the directions of Government of India. vi. Customer Complaint Status:

Sr. No. Particulars	2022-23	2021-22
1 Customer complaints at the beginning of the year	06	19
2 Complaints received during the year	5609	3236
3 Complaints redressed during the year	5578	3249
4 Complaints pending at the end of the year	37	06

3.5 KYC/ AML

The Bank has Board approved KYC-AML-CFT Policy in place. The Policy is the foundation on which the Banks implementation of KYC norms, AML standards and CFT measures are based. The full KYC compliance entails staff education as well as customer education for which the Bank takes various measures on a regular basis. A comprehensive list of eligible KYC documents is uploaded on the Banks web site for the benefit of customers. Regular training sessions are conducted on KYC-AML-

CFT guidelines at the Banks training establishments to sensitize the employees.

3.6 Risk Management

The Bank has put in place Risk Management Policies and Strategies which enables it to identify, measure, monitor and manage risk efficiently and establishes control systems in line with the Banks aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor the risk at Bank level in accordance with RBI Guidelines. Bank has also constituted sub-committees headed by Top Management of Bank.

The Bank is compliant to the RBI guidelines on disclosure requirements under Basel III Capital Regulations.

3.7 Marketing & Publicity

During FY 2022-23, the Banks Marketing and Publicity strategies were a resounding success. The marketing team participated in various expos in the physical and virtual modes under the Retail, Agri & MSME sectors for increasing our presence and business mobilization.

In FY 2022-23, Bank created new benchmarks in all mediums like TV, Radio, Digital, Print, etc. Bank has done campaigns with various National & Regional TV, Radio, Print & Digital Channels for creating awareness about the Bank and Promotion of various products & services.

In Print category, Bank has published various pointer and display advertisements including Skybus advertisement throughout the country. Under Outdoor category also,

Bank has put hoardings/LED Structures at major places like- Mumbai, Bengaluru, Pune, Chennai, Lucknow,

Bhopal, Kochi, Bhubaneshwar, Kolkata etc.

In Digital Marketing Bank has done advertisement campaigns in major e-commerce, news portals & Google

Ads- Search and Display Campaigns. Bank emphasized SEO for making the corporate website more user-friendly.

In social media, Bank reached 3 million followers on 5 major platforms viz. Facebook, Instagram, YouTube,

LinkedIn & Twitter. On YouTube, Facebook and Instagram Bank is at Top 3rd, 4th & 5th position respectively in terms of followers/subscribers.

3.8 Citizens Charter

The Bank has adopted the Citizens Charter since 2000-01, which details the duties and responsibilities of the Bank towards its customers. The Charter is displayed at all the branches and Banks website.

4. SOCIO/MICRO ECONOMIC DEVELOPMENT 4.1 Priority Sector Lending

It has been the constant endeavor of the Bank to facilitate equitable and sustainable economic development by timely and hassle-free availability of credit for productive purposes to Small and Marginal Farmers, Micro and Small Enterprises,

Retail Traders, Professional and Self Employed, Women

Entrepreneurs and entrepreneurs from economically weaker sections. Total Priority Sector Lending (PSL) of the Bank

(including investments & excluding PSLC sale) stood at 58.37 % of ANBC as against the mandatory target of 40%. The advances under Priority Sector (excluding investment & PSLC sale) as of 31st March 2023 stood at Rs. 66,844.00 Cr (56.77 % of ANBC). Bank has carried PSLC Sale transaction of Rs. 700 Cr and received premium of Rs. 4.15 Cr during FY 2022-23. Bank has achieved all mandatory targets as stipulated by

RBI under Priority Sector Lending during the FY 2022-23 on Quarterly Average Basis.

4.2 Agriculture

Bank sanctioned fresh loans of Rs. 14275 Crore for Agriculture and allied activities during the year 2022-23. The total outstanding advances to agriculture sector reached a level of Rs. 23400 Crore as on 31.03.2023. Total

Agriculture (including investments & excluding PSLC sale) stood at 20.82 % of ANBC. Bank has carried out PSLC sale transaction of Rs. 200 Cr during FY 2022-23. Bank has achieved all mandatory targets (on Quarterly average basis) under Priority Sector and Agriculture including sub-targets during the FY 2022-23.

The bank focused on growth of Investment Credit under Agriculture during the year 2022-23 and disbursed Rs.5491 Crore. As a result, Investment Credit of Bank grew by 35.28% and MKCC portfolio of the Bank grew by 1.24 % over previous year.

During FY 2022-23 Bank has focused on Agriculture Gold

Loan and disbursed Rs. 1905 Crore, thereby increased Agriculture Gold Loan portfolio by 72%.

Bank has entered into MOU with Shri Kshethra Dharmasthala Rural Development Project (SKDRDP) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) for SHG Finance. Bank has received Rs. 1103 Crore SHG advances from SKDRDP, during FY 2022-23.

Over last few years, Agriculture sector has been repeatedly hit by vagaries of natural calamities like drought, flood, hailstorms, etc. Within the regulatory guidelines, Bank has extended the relief measures to farmers from time to time. The Bank undertook awareness/sensitization program and locational trainings for the branches for increasing advances to agriculture by providing hassle free credit to farmers.

4.3 Micro, Small and Medium Enterprises (MSME)

MSMEs are the growth engine for Indian economy. They have highest contribution in generating employment both directly as well as indirectly. Bank has extended support to MSMEs and has implemented various relief measures given to MSME borrowers by Government of India and Reserve Bank of India. i. Additional Funding extended under Emergency

Credit Line Guarantee Scheme (ECLGS) to eligible borrowers. ii. Additional finance extended under Adhoc Line of Credit COVID-19 Scheme iii. For street vendors, Bank of Maharashtra has extended loans via PMSVANIDHI scheme to revive their business. iv. Finance is extended to eligible projects on the healthcare sector under Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS). v. Finance is extended under Loan Guarantee Scheme under Covid Affected Tourism Service Sector (LGSCATSS) to provide relief to eligible Travel &

Tourism Stakeholders viz. by providing need based financial assistance who have been adversely impacted by the Covid-19 pandemic. Banks lending to Micro, Small and Medium Enterprises increased by 26.50% as compared to Mar 2022 and recorded growth of Rs. 6,965 crore in absolute terms. Total MSME advances of the bank stood at Rs.33244 crore as on 31.03.2023.

Banks performance in MSME portfolio in FY 2022-23

S. No Particulars	Actual	Target
1 % of Micro to Adj. Net Bank Credit	18%	7.50%
2 YOY growth under Micro Enterprises	8%	10%
3 YOY Growth under Micro & Small enterprises O/s	20%	20%
4 Share of Micro against to MSE O/s	69%	60%

4.3.1 MUDRA

Bank is supporting credit needs of small business and non-farm enterprises engaged in manufacturing, trade and services up to Rs. 10 lakh by way of Pradhan Mantri Mudra Yo-jana (PMMY). During the year ended 31.03.2023 the Bank has sanctioned Rs. 3,995 crore under PMMY against the target of Rs. 3,240 crore, thereby achieving 123% of target. Other Major Achievements

MSME outreach programmes have been organized at various locations in zones to cater new business and appreciable response is received from the customers.

Bank has created Digital Lending Department specially for bringing new digital products to serve MSME units in much better and faster way.

Straight Through Process (STP) of Mudra Loan is under development for hassle free disbursement.

Bank was successful in achieving Stand-Up India targets. As on 31.03.2023, our Bank had sanctioned 4123 number of applications as against target of 4064. Bank also achieved all set targets for MUDRA and PM SVANIDHI scheme.

Bank has made tie up with Maratha Chamber of Commerce, Industries and Agriculture(MCCIA),

NSIC, BYST for sourcing new and quality MSME proposals.

Bank has empaneled Due Diligence Agency for digital flow of Due Diligence Report, for better diligence at Pre-Sanction stage of credit proposal to promote good quality assets.

4.4 Banks Exposure to Select Segments

(Amt. Rs in Cr)

Sr Sector No	As on 31.03.2023	As on 31.03.2022	% increase (+/-)
1 Micro / SHG Finance	2,086	577	261.53
2 Weaker Section	19,187	12,735	50.66
3 SC/ ST Beneficiaries	5,442	4,234	28.53
4 OBC Beneficiaries	11,714	9,108	28.61
5 Minority Communities	5,723	4,481	27.72

5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK: 5.1 Credit Flow to Retail Sector

Bank is providing retail loans for salaried persons, professionals, businessmen and pensioners for purchase of housing properties/ plots, repair/ renovation of house, purchase of consumer durables, two/four wheeler vehicles, education and loan for other personal needs etc. Total Retail portfolio of the Bank as on 31.03.2023 stood at Rs. 43,432.60 Crore.

SN Scheme	Brief Description	Portfolio as of Mar 23	NPA %
1 Maha Super Housing Loan Scheme	Housing Sector being the thrust area, Bank has various Housing Loan schemes in place to meet the needs of all economic segments. Bank offers housing loan for "purchase / construction of new / existing house / flat, repairs/ renovation / alteration of existing house / flat, purchase of plot and construction thereon"	25,181.06	0.69
2 Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme	Bank has launched schemes for purchase of New four wheelers i.e. Car, Multi Utility vehicles (MUVs), SUV etc. for personal use (i.e. not for hiring/ ferrying passengers) for individuals (18 years and above).	2,386.40	0.77
3 Model Education Loan Scheme	Bank has implemented Model Education Loan Scheme as per IBA guidelines and provides hassle free Education loan to all meritorious and deserving students for pursuing higher studies /education in India and abroad.	1,828.64	0.96
4 Loan Against Self- Occupied Property	Bank has introduced Loan Against Self-Occupied Property in which loan is given to the borrower against the property. The end use of the loan is for meeting varied personal needs like Childrens Education, marriage of children, medical treatment, travel/ tour expenses, buying vehicle or hi-tech gadgets, other domestic needs etc.	1,824.79	1.18
5 Mahabank Top up Loan Scheme	In order to extend additional credit support to existing housing loan borrower as well takeover of existing housing loans of other banks with additional facility of Top-up Loan. Bank has launched "Mahabank Top Up loan Scheme". Under this scheme credit is extended for repair / renovation / furnishing of house, childrens education, marriage of children, medical treatment, buying a vehicle or hi-tech gadgets and other domestic needs etc.	1,699.21	0.20
6 Mahabank Gold Loan Scheme	To cater to the needs of meeting personal expenses, whatsoever which include personal expenditure for varied needs like marriage, higher education, medical emergencies, and business travel etc., Bank has a retail loan product as "Mahabank Gold Loan Scheme".	4,259.33	0.20
7 Mahabank Aadhar Loan Scheme	To cater to the needs of our existing pension account holders in meeting their personal expenses, pilgrimage, medical and domestic needs etc. Bank offers "Mahabank Aadhar Loan Scheme".	709.05	0.93
8 Personal Loan	To cater to the needs od salaried individual and professionals of meeting other personal expenses, medical or domestic expenses etc.	1381.46	0.40

5.2. Centralized Processing of loans

Bank has established Centralised Processing Cells

(CPCs) for processing and sanctioning of commercial and retail advances at all its zones to improve the turnaround time (TAT) in facilitating timely credit.

All mortgage based Retail loan or wherever immovable property are offered as collateral for mortgage purpose irrespective of the loan amount to be processed and sanctioned at the CPC-R.

These loans are as under:

Housing Loan

Top up Loan

Loan against self-occupied Property

Education Loan (In case immovable property is offered as collateral)

Vehicle Loan (In case immovable property is offered as collateral)

All other Retail Loans to be sanctioned by respective branches.

All Branches (Categorized up to Scale -4) within urban conglomerate or within 25 km to 30 km radius in other place (as per discretion of ZMs) from location of CPC-R will be mapped with it.

Pune based CPC cells i.e. Pune City & Pune East are merged into one Maha Bank Retail Point for processing all the mortgaged based loans in Pune at a single place for mapped branches and above the delegated sanctioning powers of unmapped branches.

5.3 Housing Finance Branches:

Bank has already in place exclusive Specialized Housing

Finance Branch (HFB) at Yashomangal, Pune City (Br. Code- 1129) to capture the available opportunities in

Housing and Mortgage based loans. Major vision is establishing this specialized branch was to adopt a focus approach on pilot basis without disturbing the existing structure.

Based on the employment opportunities and livelihood, Metro centers have become an attractive destination and inviting large number of populations to migrate and settle down as a true metropolitan. Also, Metro cities have become an attractive destination for home buyers.

As evident, Bank has witnessed a positive outcome with such exclusive & at par with industry standard outlet. Now,

Bank has expanded its Housing Finance Branch outlets to other major centers like Mumbai, Bengaluru, Delhi, Noida, Hyderabad, Chennai, Navi Mumbai, Chandigarh,

Gurgaon, Wakad (Pune) and Bhopal.

5.4. Gold Loan Point:

Bank has started putting concerted efforts on new business under gold loan segment. Maha Bank Gold Loan Point have been opened across India to popularize and enhance gold loan lending of our Bank. Maha Bank Gold Loan Points facilitate quick, transparent & hassle free Gold Loan sanctioning.

5.5 Door Step Banking Services

Bank is providing Door Step Banking Services for its retail customers in 100 identifiedcities through its 546 branches. Door Step Banking Services include financial and non-financial services. The financial services include cash withdrawal, fund transfer. Non- financial transactions like delivery of account statement and TDS certificate/ Form

16 as well as pickup service of cheque/DD, 15G/15H form, standing instructions, life certificate, nomination etc. are also made available. Pensioners can also submit digital life certificate from home.

5.6 Alternate Delivery Channels 5.6.1 Internet Banking

There was an increase of 24.93% in Internet Banking user over the previous year. As of 31.03.2023, total 24.13 lakh customers were enrolled for Internet Banking facility.

5.6.2 Mobile Banking

Banking users increased by 24.40% in FY 2022-23. Total enrolled users were 23.46 lakhs as on 31.03.2023.

5.6.3 QR Code issuance

There was increase of 151.62% in QR code issuance over the previous year. As of 31.03.2023, total 10.91 lakh QR codes issued to customers.

6. CORPORATE SOCIAL RESPONSIBILITY

Following the legacy of the age-old convention of contributing to socio-economic advancement & underprivileged, weaker areas and rural citizens, Bank undertook various activities aligned with Govt. thrust areas. Bank also undertook, various activities in the aspirational districts like Washim, Gadhchiroli & Nandurbar.

Empowering MSMEs: Bank organized and participated in various events like IWEC Women Business Mela- a business conference for women entrepreneurs, "SARAS 2022 - Exhibition for products display of Self Help Groups", " MSME Conclave" organized by CII Tamilnadu and other activities in the same line. Promoting Education & Sports: Bank has supported IIT Patna for organizing " International Conference on Data Science & Artificial Intelligence 2022", "28th Colloquium to Microplantology - programme on environment, Industrial applications of micropaleontology & Stratigraphy" organized by Savitribai Phule University, for expansion & improvement existing facilities for the cause of Special Education for underprivileged children to Prism Foundation, Online training for organ donation to students of V4 Organs Foundation, Maharashtra NCC Cadets for procurement of electronic equipments to educate NCC cadets on Financial Literacy during the Annual Training Camps at all seven Group HQs level, free distribution of 10,000 exam guidance questionnaire books among needy students at Dagduseth Halwai Mandir Pune, renovating of library for helping in education of underprivileged students and exam aspirants of SC/ST and weaker community, Kamayani Prashikshan & Sanshodhan Society for carrying our Research Project Training Program for Mentally Challenged Children.

Promoting Healthcare/Sanitation: Bank has provided financial support to B N Rao Health Foundation for conducting free

Medical Camp at Karimnagar, Renovation of David Sasoon Infirm Asylum for old age people, Kendriya Vidyalaya Ganesh Khind for purchase of Napkin Vending Incinerators for girl students, drinking water supply to devotees during Alandi to Pandharpur

Procession, organizing "India Development & Scheme Expo" -19th Run against Drug Abuse & Thematic Expo, Seth GS Medical & KEM Hospital for event supporting cancer patients of CPAA (Cancer Patients Aid Association), Purchase of chairs for underprivileged children of CHD Group hostel, Installation of

Water Purifier at Primary School to "Mandavi Shikshan Prasarak

Mandal"; an education promoting Trust for underprivileged tribal people, Shree Ganesh Mandir Tekadi, Nagpur for purchase of vehicle for performing social work and social activities & taking care of animals, organizing an awareness program on Breast Cancer by conducting a marathon event by the name "Trust-In -Run Providing Folding Canes to visually Challenged through Blind Organization of India,Mumbai, organising blood donation camp, providing Furniture for Old age home at Malegaon. Women Empowerment: Helping Women SHGs by providing platforms like Bhimthadi Jatra (a National level exhibition for women) to showcase their products, Divisional & State Level Skill & Knowledge Competition of RSETI trained women organized by Maharashtra State Rural Livelihood Mission (MSRLM), organizing "Womens Empowerment Event" - inspirational speeches from women who have created a mark in the society at Malegaon. Urban/Rural development: Bank is undertaking various rural development activities like financial support to Janjati

Kalyan Kendra, society working for overall development of the underprivileged community for providing commuting vehicle for remote tribal area.

Rural Development & Women Empowerment:

Bank is undertaking various social activities through Rural

Development Centre (RDCs) and two trusts of Bank i.e.

Mahabank Agricultural Research and Rural Development

Foundation (MARDEF) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) in the areas of Agriculture, Rural development & women empowerment.

Activities of MARDEF: a) Trainings through Mahabank Rural Self Employment

Training Institutes (MRSETIs)

? During FY 2022-23 Bank imparted EDP & skill based training to 5,789 trainees as against set target of 5,685. ? A total of 4,360 new businesses were started by these trained entrepreneurs, showing settlement ratio of 75.32%; 2,448 units are credit linked, showing 57.06% achievement under credit linkage.

? Our Bank has received prestigious State Award from "Maharashtra State Rural Livelihood Mission",

Mumbai for Better Management of RSETIs by sponsored Bank.

? During the FY 2022-23, all RSETIs of our Bank are "AA" Graded for FY 2021-22 by NACER.

? During the year various trainees from all our 7 MRSETIs participated in "Skill and Knowledge competition" organized by MSRLM at Divisional levels & State level. At state level three prizes owned by our MRSETIs.

? MRSETIs have organized various programmes under ‘‘AZADI KA AMRIT MAHOTSAV like FIT India

Freedom Run/rally, Entrepreneurship Mobilization camps, Blood donation camps, International Yoga Day Celebration, Health checkup camps etc. ? MRSETIs have organized special training batches for Divyang, orphan women. b) Other initiatives

? Bank is undertaking various social activities through

Rural Development Centre (RDCs) and two trusts of

Bank i.e. Mahabank Agricultural Research and Rural

Development Foundation (MARDEF) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) in the areas of Agriculture, Rural development & women empowerment.

? Bank is also implementing the social security schemes of Govt. like PMJJBY, PMSBY, APY, etc. through Branches, BCs and other digital modes. ? RDC conducted special programme for Ex-army servicemen, Veermata/Veerpatni. On these occasion as token of gratitude they were felicited for their devoted service to Nation. ? GMBVM provided skill based training to rural women for self-employment activities like Cloth Bag /paper making, Agarbatti, Candles, Immitation Jewellery, preparation of value added products from fish etc. to empower them for starting new business. These women are running their business on individual as well as through SHGs.

? GMBVM provided platform to various SHG members through different exhibition so as to encourage & develop their entrepreneurship skills.

7. LEAD BANK

7.1 Lead Bank Scheme

The Bank has Lead Bank responsibility in seven districts of Maharashtra State viz. Ch. Sambhaji Nagar (Aurangabad),

Jalna, Nasik, Palghar, Pune, Satara and Thane. Every year District Credit Plans for the districts are prepared and implemented with the cooperation of other member banks as well as in coordination with District Collectors of respective districts.

7.2 State Level Bankers Committee

The Bank is the Convener of State Level Bankers Committee (SLBC) for the State of Maharashtra. SLBC prepares State Annual Credit Plan in consultation with Lead District Managers, Member Banks, NABARD,

Reserve Bank of India, etc. The Priority Sector plan for FY 2022-23 was of Rs. 5,22,073 Crore, which was one of the highest credit plan in the country. The same was approved in a special meeting held under the Chairmanship of Honble Chief Minister of Maharashtra.

SLBC also ensures holding of quarterly meetings regularly to review the implementation of State Annual Credit Plan, Priority Sector lending and Govt. sponsored schemes in the State. Apart from regular SLBC meetings, Sub-

Committee meetings as per guidelines as well as various other meetings are also organized by SLBC to coordinate between various Member Banks, State Government, Government Agencies, Reserve Bank of India, NABARD and the Central Government. SLBC, Maharashtra is having a network of more than 16,835 bank branches in the state.

In case of specific events like announcement of Debt Waiver

Scheme, Relief Package for helping poorer sections of the society in the event of outbreak of a pandemic, SLBC coordinates between Member Banks and State / Central Governments for successful implementation of various measures / schemes.

As a SLBC convener, Bank of Maharashtra coordinated for implementation of Pradhan Mantri Jan Dhan Yojana

(PMJDY) in the State of Maharashtra. As of 31.03.2023, total of 324 lakh PMJDY accounts have been opened in the State. The process of opening of PMJDY accounts is continued. SLBC also coordinates implementation of other Social Security Schemes of the Central Government in the State. As of 31.03.2023, total enrolments under

PMJJBY, PMSBY & APY are 108.88 Lakh, 232.61 Lakh & 38.39 Lakh respectively.

7.3. FINANCIAL INCLUSION / PMJDY:

(Amt in Lakhs)

	Particular	2021-22	2022-23
FI Plan	No of Transactions by BCA (in lakhs)	196.82	209.05
	Amt. of Transactions (in Cr)	14624.74	16332.09
PMJDY	No. of PMJDY accounts (in lakhs)	71.64	70.46
	Of which Aadhar Seeded (in Lakhs)	66.55	66.46
	% of Aadhar Seeding	92.90%	94.32%
	Of which Mobile Seeding (in Lakhs)	59.56	59.88
	% of Mobile Seeding	83.14%	84.98%
	Of which Ru-pay card issued (in Lakhs)	33.56	35.11
	% of Ru-pay card issued	46.85%	49.83%
	Balance in PMJDY A/c (in Cr)	2617.43	2886.45
	Average Bal.per account (actual)	3654.00	4096.00
	PMJDY-OD count ( in lakhs)	1.83	1.39
	PMJDY-OD Amount ( in lakhs)	2023.48	1483.20
	Zero Bal.PMJDY A/cs (in lakhs)	13.51	4.59
Social	Enrolment under PMJJBY ( in lakh)	19.10	25.28
Security
Schemes
	Enrolment under PMSBY ( in lakh)	37.90	47.34
	Enrolment under APY ( in lakh)	4.14	5.80
BSBD	Total BSBD Accounts (in lakhs)	93.34	88.09
Accounts
	O/S Balance in BSBD A/c ( in Cr)	3272.24	3544.95
	Average Bal.per account (actual)	3506.00	4024.00
	Commission paid towards BC Services	38.64	47.11
	(in Crore)

. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS:

.1 Performance of Regional Rural Bank

Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the Bank, having its Head Office at Chatrapati Sambhaji Nagar (Aurangabad), Maharashtra State. Total no. of branches as on 31/03/2023 stood at 421 in its area of operation covering 17 out of 36 districts of Maharashtra state. These branches are controlled through the 7 Regional Offices. All 421 branches and controlling offices are under core banking solution (CBS).

Performance highlights of Maharashtra Gramin Bank for the FY 2022-23 are as under:

MGB achieved total deposit level to Rs 15578.76 Crore and the CASA is 49.33 %.

MGB has crossed the milestone of Rs. 25000 Cr in total Business and achieved the level of Rs 25279.52 Crore with 11.33% Y-o-Y growth.

MGB has achieved operating profit ofRs 221.15 Crore

As per the DFS and NABARD guidelines, MGB had prepared

DVP targets for three financial years from FY 2022-23 to FY

2024-25 and got approved from the Sponsor Bank. According to this DVP/MoU targets, achievement of the MGB under Major key parameters for the financial year 2022-23 are as under (Rs in Crores)

Sr. No.	Performance Parameter	Actual as on 31/03/2022	DVP/MoU Target 31/03/2023	Actual as on 31/03/2023	% Achie- vement	Y-o-Y Growth (%)
1.	Total Deposits	14677.75	16000.00	15578.76	97.37	6.14
2.	CASA deposits	7565.05	8250.00	7684.57	93.15	1.58
3.	% of CASA Deposits	51.54	51.56	49.33	95.66	(4.30)
4.	Total Advances	8028.96	9800.00	9700.76	98.99	20.82
5.	Total Business	22706.71	25800.00	25279.52	97.98	11.33
6.	Interest Income	804.41	1025.00	1035.27	101.00	28.70
7.	Non-Interest Income	171.39	175.00	186.66	106.66	10.56
8.	Operating Profit	116.83	217.00	221.15	101.91	89.28
9.	Recovery in Write Off	8.95	13.00	6.01	46.20	(32.82)

MGB has deployed in all 1,261 Business correspondents in rural areas to provide door step service to the customers. MGB has opened 26.82 Lakh PMJDY accounts till 31/03/2023 and 11.38

Lakh debit cards are issued to the PMJDY account holders.

MGB is actively participating in PMJJBY, PMSBY and APY as well as the PMMY scheme declared by the GoI, DFS. During

FY 2022-23, 5.63 Lakh customers are covered under PMJJBY scheme and 15.42 Lakh customers are covered under PMSBY scheme. 2.01 Lakh customers are covered under Atal Pension Yojana (APY).

PFRDA has appreciated the work done by the bank in the APY and the Bank has received 5 awards in the different parameters during FY 2022-23.

8.2 Performance of METCO

The Maharashtra Executor & Trustee Company Pvt. Ltd., the 100% subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide services auxiliary to banking such as:

Wills: Consultation, Drafting, Safe Custody & Execution of Will.

Public and Private Trusts: Consultation, Drafting and Management of Private Trusts / Public Trusts including various compliances to Charity Commissioner, Income Tax Dept.

Power of Attorney: Management of Investments & immovable properties as Power of Attorney holder.

Guardianship: Court appointed Legal Guardianship of minors property.

Consultation for sale/purchase of property

The Company has completed its 77 years. The companys

Head office is located at Pune having its branch units at

Pune, Mumbai, Thane and Nagpur. It is managing about

1037 public & private Trusts. During the year as the

Managing Trustee, additional 92 wills were added making total 1186 wills in its custody for execution. At present the company manages properties both movable & immovable of 21 clients under the power of attorney. The company also act as the trustee in respect of 99 policies under Married

Womens Property Act and as court appointed Guardian of

Minors property in 2 cases. The company, as Managing Trustee of its 1037 trusts catalysts its social responsibility by extending help to poor people.

The Company has also donated through its trusts Rs. 177 lacs to 976 beneficiaries.

The net profit of METCO for FY 2022-23 stood at Rs. 75.70 lakhs. The Company is also diversifying its services by introducing additional business verticals of Corporate Direct Selling Agent, Corporate Business Correspondent and Recovery Agent services to be provided to Banks/ Financial Institution and will also give value addition in implementation of Govt. Security Schemes like PMJJBY, PMSBY, APY, SCSS, Sukanya Samriddhi Yojna, etc. after the approval from the RBI.

9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

During the year 2022-23, the Bank has achieved various remarkable achievements in the field of Official Language implementation: i. Bank was awarded "Rajbhasha Kirti Puraskar" for better implementation of Rajbhasha Hindi, which is the highest award for Rajbhasha. The award was given in two different categories viz. "Better Implementation of Official Language" and "Best House Magazine" in a grand function on 14th September, 2022, held at Surat, Gujarat. Shri Amit Shah,

Honble Minister of Home Affairs and Cooperation, Govt. of India, was the chief guest for the event. Shri A. S. Rajeev, Managing Director & CEO, Bank of Maharashtra felicitated

Honble Minister of Home Affairs and Cooperation during the function. Shri K. Rajesh Kumar, General Manager, HRM & Rajbhasha and Dr. Rajendra Shrivastava, DGM (Rajbhasha) were also present in the function. ii. Bank was awarded "Skoch Gold Award" for Better Implementation of Rajbhasha and became the first bank to receive this award for implementation of Official language. iii. Bank was awarded "Vishesh Puraskar" and "Rajbhasha Ratna Award" by the Mumbai based prestigious institution ‘Aashirwad for better use of Hindi during the year. Shri

K. Rajesh Kumar, General Manager, HRM & Rajbhasha received the award at the hands of Honble Governor of Maharashtra State at a grand function arranged at Rajbhawan, Mumbai. iv. Various Town Official Language Implementation Committees (TOLIC) convened by other banks awarded our Lucknow, Hyderabad, Patna & Jaipur Zonal Offices for excellent implementation of Official Language. v. Banks E-Magazine ‘Mahabank Samvad Sarita and Quarterly House Magazine ‘Mahabank Pragati are being regularly published. As a new initiative Mahabank Samvad

Sarita in Braille script is also published for the benefit of visually challenged employees of the Bank. vi. Our bank is the convener Bank for Town Official Language Implementation Committee (TOLIC) in Mumbai, Pune, Solapur, Latur & Jalgaon. Meetings of these committees were held regularly during the year and various activities of the committees were organized throughout the year as per schedule. vii. "Hindi Karya Diwas" (Hindi Working Day) is being observed by all the branches & offices of the Bank on the third Saturday of everymonth.Allthestaffare doing their maximum work in Hindi on this day. viii. Hindi version of Banks new mobile banking platform Maha-Mobile has been made available for the convenience of the customers.

10. SECURITY

The Bank has put in place a comprehensive Security Policy covering the entire Security arrangements in the Bank. The policy covers the following:

Protect the Banks assets such as cash, gold, documents and valuables at branches, administrative offices, currency chests, data centre, other critical centres and security measures for cash and valuables.

Create a secure, safe and conducive environment for, Staff, visitors and customers to conduct smooth and normal banking business.

Measures to counter manmade disasters and natural calamities. During FY 2022-23, proactive steps were taken on the physical security requirements in the Bank after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of bank robberies, breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any eventuality.

11. PERFORMANCE EVALUATION OF THE DIRECTORS AND THE BOARD: In terms of Regulation 25 of SEBI LODR, 2015, the performance of the Board as a whole and non-independent directors including

Whole Time Directors were evaluated by the Independent

Directors in a separate Meeting held on 28th March, 2023.

Further, the performance evaluation of Whole Time Directors is carried out by Committee of Board for Performance Evaluation on the basis of guidelines prescribed by Government of India.

Further, Performance of non-official Directors/ Shareholder Director is done by Board of Directors on annual basis.

12. DECLARATION BY INDEPENDENT DIRECTORS DURING THE YEAR:

All the Independent Directors of Bank have submitted the declaration confirmingthat they meet the criteria of independence as provided under Regulation 25 of SEBI (LODR) Regulations, 2015.

13. BOARD AND ITS SUB-COMMITTEES:

The composition of the Board and its Sub-committees as required to be constituted as per the SEBI (LODR) Regulations, Government of India / Reserve Bank India Guidelines and the meetings held therein are mentioned in the Corporate Governance Report.

14. SECRETARIAL AUDIT:

Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019, Bank had appointed M/s. DVD & Associates (proprietor Mr. Devendra V. Deshpande), Practicing Company Secretaries, Pune as a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year 2022-23. The Secretarial Audit Report is annexed to this Report.

Managements representation on observations given by Secretarial Auditor

Sr. Auditors Observation No.	Management Reply
1 There is no Independent Woman Director on the Board of the Bank as required by SEBI LODR Regulations, 2015.	The composition and functions of Board of Directors of the Bank are governed by the provisions of Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970, Banking Regulation Act 1949 & Nationalized Banks Scheme, 1970, RBI / GOI Guidelines.
2 Number of Independent Directors was less than 50% of its total strength of Board members as required by SEBI LODR Regulations, 2015
	As per Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970, the power to appoint Directors including Woman Director/ Independent Director except Shareholder Director is vested with the Government of India. The Government of India appoints the director(s) on the Board of the Bank in accordance with the regulatory compliances and other business requirements. As the Bank is a Public Sector Bank established under The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the SEBI (LODR) Regulations, 2015 are applicable to it to the extent it does not violate the statutes / RBI guidelines / MOF guidelines applicable to it.
3 There was no meeting of the nomination and remuneration committee during the Financial year which is required to be held once in a year as per Regulation 19 (3A) of SEBI LODR Regulations, 2015.	Since there was no agenda for the meeting, therefore, no such meeting held during the Financial Year 2022-23.
4 The bank has not taken any Directors and Officers insurance policy for their independent directors as required by Regulation 25 (10) of SEBI LODR Regulations, 2015.	As the Bank is a Public Sector Bank established under The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, the SEBI (LODR) Regulations, 2015 are applicable to it to the extent it does not violate the statutes / RBI guidelines / MOF guidelines applicable to it.
	Overall, Bank is in the process of taking the said insurance.
5 As per the Rule 3 of National Financial Reporting Authority Rules, 2018 every Body Corporate not being a Company should file form NFRA-1 and NFRA-2 the same has not been complied by the Bank	The Bank is in the process of filing the necessary form.

15. DIRECTORS RESPONSIBILITY STATEMENT:

The Directors confirm that in the preparation of the annual accounts for the Financial Year ended March 31, 2023: a) The applicable accounting standards had been followed along with proper explanation relating to material departures, if any; b) The accounting policies framed in accordance with the guidelines of RBI were followed and the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period; c) The directors had taken proper and the maintenance of adequate accounting records in accordance with the provisions of applicable laws to the Bank for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities; d) The directors had prepared the annual accounts on a going concern basis; e) The directors had ensured that internal financial controls followed by the Bank are in accordance with guidelines issued by RBI in this regard and that such internal financial controls are adequate and were operating effectively; and f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

16. CHANGES IN THE BOARD OF DIRECTORS:

During FY 2022-23, the following changes took place in the Board of Directors:

Shri Lalit Kumar Chandel retired from the Board of the

Bank w.e.f 15.12.2022 who was appointed as Government of India Nominee Director on the Board of the Bank by the Central Government of India on 17.08.2021.

Shri Parshant Kumar Goyal was appointed as Government of India Nominee Director on the Board of the Bank by the Central Government of India w.e.f 15.12.2022 in place of

Shri Lalit Kumar Chandel.

17. DIVIDEND DISTRIBUTION POLICY:

In terms of Clause 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Bank has formed a Dividend Distribution Policy and the same is available on the Banks website i.e. www.bankofmaharashtra.in.

18. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT: As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, business responsibility and sustainability report for the year 2022-23 has been prepared and is available on the Banks website i.e. www.bankofmaharashtra.in.

19. ACKNOWLEDGEMENT:

The Board of Directors place on record their appreciation for the contribution made by the outgoing Directors.

The Board of Directors wishes to express sincere gratitude to the Government of India, the Reserve Bank of India, the Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Indian Banks Association, Stock Exchanges and Depositories for their valuable advice, guidance and support; to the Customers and Stakeholders for their patronage; to the correspondents and associates for their cooperation and to all the members of staff of "Mahabank Family" for their unstinted commitment and contribution to the overall development of the Bank.

	For and on behalf of the Board of Directors
Place: Pune	(A.S. RAJEEV)
Date: 24th April, 2023	Managing Director and CEO