oriental bank of commerce Management discussions

PART A - MACRO–ECONOMIC SCENARIO

1. GROSS DOMESTIC PRODUCT

GDP Growth rates (As per provisional estimate) for 2018-19 and Q1, Q2, Q3 & Q4 of 2018-19 are as given below:-

	GDP Growth Rate
	Constant Prices (2011-12)	Current Prices
Annual 2018-19	6.8%	11.2%
(Second Advance)
Q1 2018-19	8.0%	12.6%
Q2 2018-19	7.0%	12.0%
Q3 2018-19	6.6%	11.0%
Q4 2018-19	5.8%	9.4%

2. INDUSTRIAL PRODUCTION

The General Index for the month of March 2019 stands at 140.2, which is 0.1% lower as compared to the level in the month of March 2018. The cumulative growth for the period April- March 2018-19 over the corresponding period of the previous year stands at 3.6%.

3. EIGHT CORE INDUSTRIES

Eight core industries comprise nearly 40% of the weight of items included in the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stands at 145.0 in March 2019, which was 4.7% higher compared to the index of March 2018. Its cumulative growth during April to March, 2018-19 was 4.3%.

4. WPI & CPI INFLATION

The annual rate of inflation, based on monthly WPI, stood at 3.18% (provisional) for the month of March 2019 as compared to 2.93% for the previous month and 2.74% during the corresponding month of the previous year. The all India inflation rate, based on CPI (General), stood at 2.86% (provisional) for the month of March 2019 as compared to 2.57% (provisional) for the previous month and 4.28% during the corresponding month of the previous year.

5. FOREX RESERVES

Total Foreign exchange reserves as on March 29, 2019 were valued at US$ 411.91 Billion and recorded a decline of US$ 12.64 Billion during the fiscal 2018-19. Out of the total reserves, foreign currency assets were valued at US$ 384.05 Billion and have shown a decline of US $ 15.39 Billion.

6. MONEY SUPPLY

As on March 29, 2019 Money supply (M3) was of the order of र1,39,625.9 Billion and has increased by 10.6% (M14,798.9 Billion) in FY 2018-19. Bank credit to the commercial sector increased by 12.6% (M11,647.3) in 2018-19. 2018- Net bank credit to Government increased by र4,301.8 Billion (10.8%) during FY 2018-19. The net foreign exchange assets of the Banking sector increased by र536.1 Billion (1.8%) during 2018-19.

7. SCHEDULED COMMERCIAL BANKS (SCBs) BUSINESS

i. Aggregate Deposits of Scheduled commercial Banks

Aggregate Deposits of SCBs as on 29.03.2019 were of the order of र12,572.6 Billion and have increased by 10.0% on Y-o-Y basis.

ii. Bank credit of scheduled Commercial banks

Bank credit of SCBs as on 29.03.2019 were of the order of र97,674.3 Billion and have increased by 13.2% on Y-o-Y basis. The Credit – Deposit ratio of the Banking System stood at 77.69% as on 29.03.2019.

iii. Investments of Scheduled Commercial Banks

Total Investments of Scheduled Commercial Banks as on 29.03.2019 stood at र33,803.5 Billion and have increased by 1.9%. The Investment - Deposit ratio of SCBs as on 29.03.2019 stood at 26.89%.

PART B – PERFORMANCE OF THE BANK

1. SECTORAL DEPLOYMENT OF CREDIT TO PRIORITY SECTOR

Banks advances to Priority Sector increased by र 2535.95 crore from र 66096.04 crore as on 31st March 2018 to र 68631.99 crore as on March 2019 registering a growth of 3.84% on average basis. The Priority Sector Advances constituted 40.32% of the Adjusted Net Bank Credit (ANBC) against the stipulation of 40%. The comparative position of advances of various segments under Priority Sector during F.Y. 2017-18 and 2018-19 on the basis of average of four quarters is as follows:

			(Amount र in crore)
Sr. No.	Sectors	31 March 2018	2017-18 on average basis	2018-19 on average basis
		(Audited)
1.	Priority sector credit	73101	*66096.04	68631.99
2.	Agriculture	32309	29494.70	28023.74
3.	MSME	28861	25737.59	30107.01
4.	Educational Loan	968.72	1029.50	1065.89
5.	Housing Loan	6884.73	7722.76.	8381.25
6.	Other P.S.	40.94	2111.49	1021.21

* Figures of Priority Sector as on 31.03.2019 include PSLC of र 9000 crore out of which र 5000 crore is included in Agriculture and र 2700 crore in Small & Marginal farmer. RIDF of र 4069.02 crore is also included in PS, out of which र 2549.93 crore is included in Agriculture.

1.1 Agriculture Advances

The advances to Agriculture segment decreased by र1470.96 crore, from र 29494.70 crore as on 31.3.2018 to र 28023.74 crore as on 31.3.2019, registering a decline of 4.99% on average basis. The Agriculture advances constituted 16.48% of the Adjusted Net Bank Credit (ANBC) against the stipulation of 18%. The share of Small and Marginal farmers stood at र13467.67 crores as on 31.03.2019, which constituted 7.91% of ANBC on average basis, against the stipulated norms of 8% of ANBC. During the financial year 2018-19, fresh flow of credit to Agriculture sector amounted to र 9011.76 crore.

1.2. Micro, Small & Medium Enterprises (MSME)

Banks exposure to Micro, Small & Medium Enterprises stood at र 30107.01 crore at the end of March 2019 as against र 25737.59 crore as on 31.03.2018. The Micro Enterprises sector advances stood at र 13080 crore which is 7.68% of ANBC on average basis, against the stipulated norms of 7.50%.

1.3. Oriental Green Card (OGC) & Oriental Kisan Gold Card (OKGC)

During the Financial Year 2018-19, Bank has issued 35921 cards to farmers to meet their credit requirement for crop production, repairing of agricultural machinery and equipment, working capital for allied activities, to repay their old debts taken from non institutional money lenders and consumption needs. The total amount of loan sanctioned through these cards during the year was र 736.32 crore.

1.4. Advances to Weaker Sections

Advances to weaker sections, consisting of beneficiaries belonging to scheduled castes/scheduled tribes, small and marginal farmers, landless labourers, rural artisans, beneficiaries under Govt.

Sponsored schemes (except PMEGP) are र 17866.08 crore as on 31.03.2019 against र 18080.54 crore as on 31.03.2018. The percentage of advances to weaker sections is 10.50 % of ANBC on average basis, against stipulated norm of 10%. (Amount of PSLC of Small & Marginal farmer र2700 crore is added in figure of Weaker Section as on 31.03.2019)

1.5 Pradhan Mantri Jan Dhan Yojana (PMJDY)

The progress under PMJDY is as under:

		(Figures र in lacs)
SN	Parameters	As on 31.03.2018	As on 31.03.2019
1	No. of accounts opened	42.44	48.83
2	RuPay card issued	37.90	40.82
3	Percentage of RuPay card issued	89.30%	83.59%
4	Accounts with zero balance	4.31	4.69
5	Percentage of Zero balance accounts	10.16%	9.60%
6	No. of Passbooks issued	40.13	45.68
7	Percentage of Passbooks issued	94.55%	93.55%
8	Accounts opened with Aadhaar numbers	32.07	38.09
9	Percentage of Aadhaar seeded accounts	75.57%	78.00%
10	Amount of deposit in accounts	र440596.63	र401274.00

1.6 Pradhan Mantri Mudra Yojna (PMMY)

- PMMY was launched on April 08^th, 2015 to fund the unfunded by bringing non-farm enterprises in Manufacturing, Trading and Services to the formal financial system and extending affordable credit up to र10 lakhs to them. As against the disbursement targets of र2900 crore, the Bank has disbursed र2990.20 crore during F.Y 2018-19.

1.7 Government sponsored schemes

The Bank is implementing various Government sponsored schemes such as Differential Rate of Interest (DRI), Prime Minister Employment Generation Programme (PMEGP), National Urban Livelihood Mission (NULM), National Rural Livelihood Mission sections of society with special focus on (NRLM)etc.,benefitting SC/ST and women.

1.8 State Level Bankers Committee Responsibility

The Bank has been bestowed with the assignment of Convener – State Level Bankers Committee for Delhi State by the Government of India from November, 2011. There are 45 member banks of SLBC – Delhi State which include all prominent banks i.e. PSBs, Private Sector Banks and Cooperative Banks. SLBC Delhi has played important role in implementation of DBT scheme, a flagship program of Government of India. It has also closely co-ordinated with DFS, MoF, GoI/ RBI/ State Govt. departments/ Member Banks for implementation of Government and RBI directions.

1.9 Lead Bank Responsibility

Bank is performing the functions of Lead Bank in four Districts, namely, Ferozpur in Punjab, Sriganganagar in Rajasthan, Palwal in Haryana and North Delhi in Delhi state. There is more than 100% achievement under ACP by Lead District Sriganganagar and North Delhi. Lead District Palwal and Ferozpur achieved more than 90% under ACP.

1.10 OBC Rural Development Trust

Bank has set up a special purpose vehicle in the name of Oriental Bank Rural Development Trust (OBCRDT) for setting up Training Centres at various places across the country for imparting training for capacity building in rural areas. Presently, five OBCRSETIs (OBC Rural Self Employment Training Institutes) are functional at Dehradun, Sriganganagar, Jaipur, Ferozepur and Palwal. During the Financial Year 2018-19, a total of 137 Skill Development training programmes were conducted and 3412 candidates were benefitted under various programmes. Cumulatively these centers have conducted 1160 Skill Development training programmes since inception benefiting 30467 candidates, the settlement rate of trainees since inception is 68.74%.

2. RETAIL CREDIT

Retail Credit segment continues to be the thrust area of lending. All our Retail Credit products are customer friendly, competitive and specifically designed to suit all sections of the society. The Retail Credit Portfolio constitutes 19.32% of total advances as on 31.03.2019 as against 15.79% as on 31.03.2018. During FY 2018-19, Retail Credit (without IBPC, Indirect and pool) has shown a growth of 33.72%

2.1 Home Loan

The Home Loan portfolio (without IBPC) has shown a growth of 30.80% on YoY basis. During the year, fresh home loans of र4535.88 crore were sanctioned in 12490 accounts.

2.2 Car/Vehicle Loan

Car/ Vehicle loan stood at र1879.46 crore as on 31.03.2019. Vehicle Loan has been re-adjusted as per Banks RAM credit. During the year fresh car loans of र792.71 crore were sanctioned in 13541 accounts.

2.3 Education Loan

Education Loan portfolio of the Bank stood at र1450.61 crore as on 31.03.2019. Education loan interest subsidy of Rs. 9.51 Crore has been credited in respective education loan accounts during the FY-2018-19.

2.4 Loan against Immovable Property

The YoY growth under Loan against Immovable Property is 40.20% During the year fresh loans of Rs. 823.80 crore were sanctioned.

2.5 Personal Loan

YoY growth in personal loan is 38.45%. During the year fresh personal loans of र715.36 crore were sanctioned in 15531 accounts. For increasing retail credit, the Bank has taken the following new initiatives during the year:

I. Appointment of DSA: DSA (Direct Selling Agent) is an initiative taken by our vertical for growth in Home Loan business. Builders, professional, retired staff, can be appointed as a DSA.

II. Modification in Home Loan : Following amendments have been made in Home Loan Scheme to make it more attractive:

? In 13 centres,for purchase of plot limit has been increased upto13 70% of eligible loan amount for borrowers having cibil score of more than 650.

III. Modification Vehicle Loan Scheme:

? Concession of 0.10% has been given to borrowers having cibil score of 700 and above.

IV. Modification Personal Loan Scheme:

V. Concession of 0.25% has been given to borrowers having CIBIL Score of 700 and above.

3. THIRD PARTY PRODUCTS

3.1 Life Insurance Business (JV)

During FY 2018-19, the Bank has sourced 45128 policies on retail/ Individual platform with First Premium Collection of र219 crore and has earned commission of र64.24 crore. Besides, the Bank has also sourced 8293 policies under Group Secure Scheme (GSS) for covering retail loans thereby earning commission of र87.77 Lacs.

3.2 General Insurance Business

Bank has a corporate agency tie up with Cholamandalam MS General Insurance Co. Ltd. (CholaMS) and The Oriental Insurance Company Ltd for General Insurance Business. In General Insurance Business, the Bank has collected a premium of र59.02 Crores, thereby earning a commission of र7.73 crore.

3.3 Health Insurance Business

Bank offers Health insurance products of Cholamandalam MS General Insurance Co. Ltd. (CholaMS) and The Oriental Insurance Company Ltd. During the FY 2018-19, the Bank has marketed 70992 Mediclaim/Health policies and has collected a premium of र67.76 crore thereby earning a commission of र12.10 crore.

3.4 Mutual Fund Business

Our Bank is a distributor for Mutual Fund products and has Tie Up with 7 Asset Management Companies. Bank has also tied-up with Fintech Robo-Advisory Firm, Fisdom, through which online Mutual Funds are also being made available. During the Financial year 2018-19, the Bank has earned a commission of र40.88 lacs from Mutual Fund Business.

3.5 Oriental Bank of Commerce-SBI Credit Cards

Our Bank has an arrangement with SBI Cards for marketing of Co-Branded credit cards since 22^nd October 2011. In FY 2018-19, 4894 credit cards have been issued and the Bank has earned a commission of र1.18 crore through this business.

3.6 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana(PMSBY)

Under these Social Security Schemes launched by the Honble Prime Minister in May 2015, our Bank has enrolled a total of 45,52,070 persons with 7,07,555 & 38,44,515 enrolments under PMJJBY & PMSBY respectively.

4. GOVERNMENT BUSINESS

Collection of Taxes: The Bank is authorized for collection of Direct taxes and Indirect taxes (Excise Duty & Service Tax) through OLTAS system. Bank is also authorized for collection of Commercial Taxes (Govt. Revenue/ e-payment of Govt. Taxes) in the state of Tamil Nadu, Seemandhra, Rajasthan, West Bengal, Delhi, Maharashtra, Odisha, Mumbai, Gujarat and Uttarakhand.

Pension to Central Govt. / State Govt. Pensioners: The Bank has its own ‘Centralized Pension Processing Centre which handles pension related disbursements for Central Civil, Telecom, Railways, Postal and Defence Pensioners through Pension Module in the GBM system. The Bank is disbursing the pension to State Govt. Pensioners through respective branches in the States of Haryana, Punjab, Rajasthan, Chattisgarh and West Bengal besides disbursing pension to other State Govt. pensioners residing in Delhi, Mumbai, Kolkata andChennai. Further, the Bank is disbursing pension to Freedom Fighters under Swatantra Sainik Samman Pension Scheme.

Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Account (SSA) and E-Kisan Vikas

Patra (KVP): The Bank is doing PPF, SCSS, SSA and KVP business through 1847 authorized Branches.

National Pension Scheme & APY: The Bank is also registered with PFRDA for National Pension Scheme and Atal Pension Yojana.

E-Stamping: E-Stamping services have been provided in the States of Gujarat, Karnataka, Delhi and Rajasthan through designated branches in the Bank in coordination with Stock Holding Corporation of India Ltd. (SHCIL).

5. TREASURY OPERATIONS

The Banks secondary market turnover has been र170654.45 crore in FY 2018-19. The net profit from Treasury Operations has been र321.38 crore during FY 2018-19. The bank shifted SLR securities amounting to र5,995.39 crore from HTM to AFS. The bank also shifted SLR securities amounting to र4,703.23 Crore from AFS to HTM by booking depreciation of र86.05 crore. Non SLR securities amounting to र26.99 crore were shifted from HTM to AFS category. The aggregate investment of the Bank has increased to र80505.59 crore as on 31.03.2019 from र70856.96 crore as on 31.03.2018. The Investment as on 31.03.2018 was lower as compared to investment on 31.03.2019. The investment portfolio as on 31.03.2019 increased due to enhanced investment in Govt Securites by र2950.16 crore, and investment in recapitalization bond to extent of र6686.00 crore.

6. FOREIGN EXCHANGE BUSINESS

During the fiscal year 18-19, the Bank achieved Forex turnover of र60,255.00 crore. The total earnings from Foreign Exchange business for the financial year 2018-19 was र57.00 crore. Bank has 82 AD Branches & 7 CTC Hubs to handle Foreign Exchange Business. The Export Credit of the Bank stood at र3,378 crore as on 31^st March 2019 while the Banks Non Resident deposits stood at र5,570 crore as on 31^st March 2019 as against र5,230 crore as on 31^st March 2018, thereby registering a growth of 6.50% over the preceding financial year. Bank has authorized B/o Pune as specialized NRI branch to cater to the needs of nonresident and garnish the new business. To provide efficient and speedy Customer Service, Bank has opened Centralized Transaction Centres (CTC) for handling of Forex transactions at Delhi, Mumbai, Ahmedabad, Kolkata, Chennai, Hyderabad and Amritsar.

7. MERCHANT BANKING

The Bank is a registered Category I Merchant Banker and holds permanent registration certificate. The Bank also holds permanent registration as Banker to an Issue. As a Self Certified Syndicate Bank (SCSB) it has made available ASBA (Application Supported by Blocked Amount) facility to its customers. During the year, the Bank handled 51 IPO/Debts/Rights issues and also acted as an Arranger in 5 issues of Commercial Paper.

8. RECOVERY

The Bank has well-defined Recovery Policy containing detailed guidelines for NPA Management. It encompasses all areas of NPA Management, Monitoring and follow-up measures, Compromise settlements, taking action under SARFAESI Act, Filing of recovery suit with DRTs and other courts of Law, organizing Lok Adalats, appointment of Recovery/Enforcement agents, Sale of assets to ARCs, declaring Wilful Defaulters. The position of recovery performance and NPA for the F.Y.2018-19 in comparison with F.Y. 2017-18 is given as under:-Cash Recovery has increased from र2234.78 crore to र4262.08 crore, Recovery in T.W.O. accounts has increased from र263.69 Crore to र1061.97 Crore and Up-gradation has increased from र563.27 crore to र763.61 crore

Recovery in Recorded Interest has increased from र99.65 crore to र509.50 Crore.

Gross NPA has declined from र26133.64 Crore to र21717.07 crore. Net NPA has declined from र14282.86 crore to र9439.62 crore. PCR of the Bank has increased from 64.07% to 75.84%.

Gross NPA ratio has decreased from 17.63% to 12.66% and Net NPA ratio has also decreased from 10.48% to 5.93%.

9. RISK MANAGEMENT

The Bank has put in place requisite Risk Management Architecture and Systems which are reviewed and updated regularly in the light of guidelines received from time to time from Reserve Bank of India, SEBI and Ministry of Finance etc. The Risk Management Function in the Bank is supervised and managed by the Board of Directors of the Bank. The Board is assisted in this through a SubCommittee of the Board viz. Supervisory Committee of Directors on Risk Management (SCDRM) which meets at quarterly intervals. The Bank has an independent Risk Management Department which is headed by Chief Risk Officer (CRO). The Chief Risk Officer (CRO) is responsible for the leadership, direction and coordination of the application of risk management at the Bank and to ensure that the principles and requirements of managing risk are consistently adopted throughout the Bank.

At the Executive Level, separate committees viz. Credit Risk Management Committee, Market Risk Management Committee and Asset Liability Management Committee have been formed comprising of MD&CEO, ED and executives of functional departments looking after the respective business risk area. Operational Risk Management Committee is an executive level committee headed by the Executive Director. These committees meet periodically to monitor all policies, validate compliances, undertake portfolio review and implement risk initiatives of the Bank. The Bank has Board approved policies in place for identifying, assessing, managing and mitigating various risks in the Bank which includes Loan Policy, Credit Risk Management Policy, Asset Liability Management Policy, Liquidity Risk Management Policy, Market Risk Management Policy, Operational Risk Management Policy, Disclosure Policy, Compliance Policy, Internal Capital Adequacy Assessment Process (ICAAP) Policy, Policy for credit default swaps, CRAR policy, Reputational Risk Management Policy, Information security policy, Cyber security Policy, Integrated Treasury Policy, Country Risk Management Policy, Stress Testing Policy, Credit Risk Mitigations & Collateral Management Policy, Policy guidelines of Delegated Powers for loans &advances, Integrated Risk Management Policy, Recovery Policy, Business Continuity Plan & Disaster Recovery Policy, Audit Policies, KYC & AML Policy, Customer Service Policy etc. A Risk dashboard incorporating the detailed assessment of various risk covering inherent risk and control parameters is presented to the Board in the form of a Risk Profiling Template. Bank has put in place risk appetite framework.

Based on the framework risk appetite statement is prepared and presented to various committees from time to time for information and necessary corrective actions.

Implementation of Basel III

Pillar I:

The Bank is Basel III compliant in terms of the Basel III-capital regulations issued by RBI. In terms of the Pillar-1 norms under Basel III, Bank has computed its capital requirements for Credit, Market and Operational risk as on 31.03.19. The Capital Adequacy Ratio (CAR) of the Bank stood at 12.73% and Total Tier I ratio at 9.98% as on 31^st March 2019 as against minimum regulatory requirement of 10.875% and 8.875% respectively.

Pillar II:

The Bank has a Board approved policy on Internal Capital Adequacy Assessment Process (ICAAP) as a part of Supervisory Review and Evaluation Process (SREP) under Pillar-2. The Policy enables the Bank to identify and assess other risks which are not covered under Pillar-1. Accordingly, the Capital Assessment process under Internal Capital Adequacy Assessment Process (ICAAP) is reviewed annually so as to integrate the Banks Business Planning, Business performance with Capital & Risk.

Pillar III:

The disclosures required in terms of Pillar-3 norms of Basel III form part of the annual report of the Bank and are made available on Banks website.

Asset Liability Management (ALM) and Market Risk Management

All forms of market risks, viz. Liquidity Risk, Interest Rate Risk, Equity Risk and Foreign Exchange Risk are addressed by the Bank through a well-defined set of policies viz. Asset Liability Management, Market Risk Management Policy, Liquidity Risk Management Policy and Integrated Treasury Policy are approved by Banks Board. The Bank has constituted the Asset Liability Management Committee (ALCO) & Market Risk Management Committee (MRMC) in terms of RBI guidelines. The ALCO is entrusted with active supervision of Liquidity Risk Management, Funding and Capital Planning, Profit Planning and Growth Projection, whereas the MRMC is entrusted with Market Risk Management, Trading Risk Management, monitoring of Investment portfolio of the Bank.

Credit Risk Management

The Bank has constituted Credit Risk Management Committee (CRMC) which reviews the Policies, Procedures and Systems relating to Credit Administration and Monitoring at periodic intervals. The Banks Credit Risk Management process is articulated through various Board approved policies viz. Loan Policy, Credit Risk Management Policy, Loan Review Mechanism Policy, Credit Monitoring Policy, Delegated Powers for loans & advances, Recovery Policy etc. The Credit Risk Management has risk controls at different stages viz. Loan Origination, Loan Approval, Loan Disbursement and Post Disbursement.

The Bank has defined credit appetite linked to entry level external and internal rating. The Bank also factors risk-reward trade off linked to external and internal rating matrix to ensure risk based pricing.

The Credit Risk Mitigation is undertaken by fixing, monitoring and reviewing of lending specifications, credit exposure limits in terms of Single & Group borrower exposure, fixing sub limits within single borrower exposure based on credit rating & constitution of the borrower, exposure to sensitive sectors (including real estate and capital market), laying down thrust and restricted areas of lending, ceiling for Industry exposure, Substantial exposure and Inter-Bank exposure.

The Bank has defined methodology for identification and categorization of Banks stance on Area of lending i.e. Thrust, Specified, General and Negative Area of Lending. This mechanism enables the Bankin identification of Stressed industry / Sector and review Banks stance of lending based on indicative stress or adverse sectoral developments, on a frequent basis. The Bank has also adopted a Board approved methodology for identification of stressed sectors and additional provision requirement to such stressed sectors (if any). The Bank has implemented Large Exposure Framework in line with RBI guidelines with effect from 01^st April 2019. The Guidelines of exposure limit are based on Eligible Capital Funds (Tier 1) of the Bank as against Total Capital Fund (Tier 1+Tier 2) of the Bank in the previous guidelines.

The Bank has fixed ceiling limit at portfolio level (like AAA, AA, A, BBB) to maintain a healthy credit portfolio and monitor the growing exposure to various sectors by way of trigger points. Credit Concentration is also reviewed on quarterly basis industry wise, rating wise, region wise, etc. The credit risk assessment of the borrowers is undertaken using different credit rating models for borrowers including Large Corporate, Emerging Corporate, Small Business & Services, Small & Medium Enterprises, Infrastructure, Greenfieldproject and Real Estate and for Retail Credit including Housing loan, Education Loan, Personal Loan and Agriculture & Allied activities. The Loan Review Mechanism, which functions independent of the Credit Department and Risk Management Department, reviews and monitors large credit exposures of the Bank on periodic basis. Risk Management Group (RMG) has been constituted at Head Office level under Risk Management Department to collect independent information and market intelligence on the potential borrowers (M50.00 Crore & above) from the public domain.

Operational Risk Management

The Bank has an Operational Risk Management Committee (ORMC) which meets on regular basis to review the operational risk profile, review and approval of the development and implementation of operational risk methodologies and tools including assessment approaches along with review of the existing as well as new products and processes. The Operational Risk Management Policy of the bank outlines the structure and framework for measuring, monitoring and controlling the operational risk of the bank. The Risk Management Department co-ordinates with all areas of the Bank and collects relevant information, builds a consolidated view of operational risk, assembles summary of the same and communicates to the Risk Management Committees and other interested parties.

The operational risk prone areas are identified and suitable steps are initiated to mitigate/ prevent such risks by reviewing systems and procedures, introducing control elements and imparting training to the staff so as to guard against such incidents.

Operational risk is increasing in importance, owing to its ability to severely impact the Banks financial strength, reputation and its relationships with its various stakeholders. Keeping in view of the same, Bank has taken numerous steps to mitigate such high risk events. Recently, Bank has conducted Risk Assessment Workshops at ground level i.e. Circle office and branches. The same is an ongoing exercise aimed at sensitizing the field functionaries regarding mitigation of risk in day to day operations. Also the Bank has already in place the RCSA and KRI framework to meet the regulatory requirements. Further, the Bank is in the process of upgrading the existing system and practices to facilitate migration to advanced approaches. For the same, Bank has engaged consultant for implementation of Integrated Risk Management Solution along with the System Integrator. Bank is also a member of Credit and Operational Risk Loss Data Exchange (CORDEX) incorporated by IBA, which collects & disseminates the Operational Risk loss events among its members.

10. RBIA & INTERNAL CONTROL SYSTEM

To improve the quality at all levels i.e. business, operational efficiency, time (TAT) and strengthen compliance functions, the Bank has embarked upon Vertical System under Project Udbhav. Under Control Vertical, the I&C Vertical provides vital assurance to the Top Management on the effectiveness of internal control, risk management & regulatory compliance by the Bank. With ultimate responsibility the Vertical ensures that the various mechanisms adopted by the Bank for control and supervision over the Branches/Offices are appropriate, effective, robust & in conformity to the regulatory & statutory guidelines. 12 specialized I&C Circle Offices operate as an extended arm of the Vertical which co-ordinates & facilitates to carry out various types of audits/inspection of the Branches/Offices. The Bank also engages CA firms having adequate exposure in the area of Bank Audit, Forex and Information Technology etc. for regular/periodic audits, which also contribute towards effectiveness of the internal control system.

Automation of Audit Processes Project iIAMS - To strengthen the supervision processes so as to ensure adherence with internal instructions at operational level, the Bank is in the process of automating various Audit types viz. RBCA, RBIA, RBMA, LRM, Special Focus, Revenue Leakage, IS Audit and Legal Audit. Presently, the Concurrent Audit module is made operational w.e.f 01.04.2019. The automation of other modules is under process and shall be made operational in phased manner during current F.Y. which shall further strengthen the adherence with internal instructions at operational level.

Review of Banks Internal Audit Policies - Considering the sweeping changes in internal audit functions in view of the automation, comprehensive review of the coverage, scope & methodology of the existing audit guidelines have been undertaken so as to make it compatible with new system. Accordingly, the review of the internal audit policies namely Concurrent Audit, RBI, RBMA, IS Audit, LRM was undertaken & the same was approved by the Board in the meeting held on 26^th March 2019.

Robust Techno-Driven system for Prevention of Fraud – OSS & AML Cell - As a supplementary tool to on-site inspections, generation of OSS alerts are done at prescribed intervals & critically analyzed to identify any areas of supervisory concern in the functioning. A dedicated AML Cell I&C Vertical is already operational in accordance with the regulatory guidelines of FIU-India, RBI and IBA for monitoring of Anti Money Laundering (AML) related activates.

Enterprise Fraud Risk Management Solution (EFRMS) – An EFRMS Cell has been made operational under I&C vertical with a purpose to monitor both online channels (Net Banking, Mobile Banking & Card) and off-line channels covering transactions undertaken at Branch, Credit, through A.D.(Forex Business), Treasury, Currency Chest and Service Branches etc. Presently rule based alerts covering various scenarios are generated and being scrutinized by EFRMS Cell for identifying risk prone areas and to prevent frauds.

11. KNOW YOUR CUSTOMER (KYC) NORMS & ANTIMONEY LAUNDERING (AML) MEASURES

OBC ‘KYC Policy has been formulated to comply with the various laws and regulations, national as well as international, Govt. of India and Reserve Bank of India directives / instructions & guidelines, primarily to prevent the Bank from being used, intentionally or unintentionally, by criminal elements for money laundering activities. The Policy comprises of four key elements viz. "Customer Acceptance Policy", "Customer Identification Procedures", "Monitoring of Transactions" and "Risk Management". This enables the Bank to know / understand the customers and their financial dealings better and helps in managing risks prudently. The detailed guidelines and subsequent instructions are being reiterated from time to time for strict compliance by the field functionaries.

12. CUSTOMER SERVICE

The Customer Service Committee Meetings are held regularly at different administrative levels. These meetings ensure proper implementation of guidelines issued by regulatory authorities. The customers are invited to attend these meetings and give their valuable suggestions / feedback on banks services and schemes. The Bank is committed to extend excellent customer service for maximum satisfaction of customers.

Web-based Customer Grievance Redressal System is provided for prompt redressal of customers grievances. A dedicated Customer Care Centre on toll free Number 1800-180-1235 and 1800 -102 -1235 has been working for clarifying the customers account related and other general queries. A separate SLBC Helpline Number 1800-180-0124 has also been operational.

The review of existing systems & procedures is an integral part of Banks functioning. The Bank monitors the queries and suggestions received from the constituents on its website and gives prompt response while also ensuring that instant solution is provided to the problems faced by the customers of the Bank.

13. VIGILANCE MACHINERY

The Bank is taking measures for improvement in all areas of vigilance i.e. preventive, detective and punitive. Prime focus is on Preventive Vigilance. Control measures have been strengthened in the bank to deter the incidents of Frauds & malfeasance e.g. an Early Warning Signal system has been implemented to monitor incidents of diversion, siphoning of funds, delinquencies and fraud related to credit. Second checking of vouchers has been implemented in the system. SWIFT has been integrated with CBS system for Forex transactions to have a better control and transparency.

"Vigilance Awareness Week-2018" was observed at all the offices of the bank to create awareness among the public about corruptions with the theme "Eradicate Corruption- Build a New India". During the week, various activities within the bank as well as for Public/ citizens were conducted throughout India.

14. Digital Banking Channels

ATMs & Debit Cards:- As on March 2019, Bank has 2625 ATMs/ Recyclers, which include 2341 Onsite ATMs, 283 Offsite ATMs and 01 Mobile ATMs. The Debit cards issued by the Bank are accepted across 2.39 Lac+ ATMs as well as for POS and E-Commerce purchases in the country. As of 31.03.2019, the total Card-base has reached 11.17 Million.

Internet Banking:- During the financial year 2018-19, Internet Banking user base has increased from 2.74 Million as on March 2018 to 3.47 Million on March 2019.

Bank has introduced various new facilities through internet banking viz.

Introduction of New Security Layer in Mobile Banking and Net banking.

• ???Nominee updation through Net Banking.

• ???Resetting of Retail Internet Banking Login Password for Non Debit Card Holders.

• ???Request of Add on Debit Card through Internet Banking.

Mobile Banking:- During the financial year 2018-19, the Banks mobile Banking user base grew up from 12.54 lac in March 2018 to 20.98 lac as on March 2019. Some new features were also introduced in Mobile Banking such as:

Bharat Bill Pay services on Mobile Banking (including non Bharat Bill Pay billers).

• ???Bharat QR on Mobile Banking.

• ???Launch of Online Investments in Mutual Funds through OBCmPay App under tie up with Fisdom.

• ???Integration of UPI app within OBCmPay.

• ???Introduction of Social Security schemes in OBCmPAY.

• Nominee updation through Mobile Banking.

SMS Banking: - As on March 31^st 2019, there are 13.8 Million customers, who are registered for SMS alert services. The customers can use pull based SMS banking for balance enquiry, mini statement, cheque stop payment, ATM card hot-listing & Email registration. In addition to the above, the following new products and services were also launched by the Bank during the financial year 2018-19:-

???Proactive credit to customers wherein Banks remit the refund of failed transactions on our ATM/BNAs based on automated reconciliation systems to customers without the lodgment of chargeback complaint.

???Launch of "Oriental Bank Rewardz" Program.

???Reduction in e-Commerce limit in Debit Cards to safeguard the customers against online frauds.

???Generation of Green Pin through IVR (Interactive voice Response).

???New menu option "pwdreis" in CBS-Finacle for submission of passwords reissue requests for both retail and corporate net banking customers

The OBC web portal was revamped (e-circular).

???Generation of Green PIN – Secure OTP based electronic PIN for Debit Cards Oriental Saathi Mobile Application:- Oriental Saathi Mobile application has been launched as ATM and Branch locator offering additional facilities such as EMI calculator, Interest rates for Deposits and Retail loans, complaints and suggestions along with SMS and Missed call banking quick link which triggers calls to designated numbers for Missed call Banking and opens mandatory SMS syntax for SMS Banking. The application also provides information of Banks Product and Services, Hindi Glossary etc. Further, customers can also apply for retail loans through this application.

- Launch of online mutual funds portal (FISDOM) through OBCmPAY:-OBC m-pay in partnership with Fisdom is an online wealth manager, delivered through the OBC m-pay app. This app simplifies all aspects of mutual fund investments by providing paperless KYC process; goal based investing, smart fund recommendation engine and real-time tracking system.

Our Customer can now access this app through OBC mobile banking app, OBC mPAY by choosing the tab "Online Mutual Funds" Oriental Bank Rewardz Program:-Oriental Bank Rewardz" is Banks Loyalty program that has been designed to encourage customers to start using and continue to use electronic or digital initiatives of the bank through Internet banking, Mobile Banking, UPI, debit card etc. rather than visiting the branch. Each product/delivery channel covers varied rewards points credit methodology. Such rewards can be reimbursed by purchasing different kinds of merchandise or service through specially designed website and mobile app for the same.

15. INFORMATION TECHNOLOGY

15.1 Core Banking Solution (CBS) and Wide Area Network

The Bank has put in place state of the art IT Infrastructure with 100% working on CBS through Network of 2390 branches offering an array of various IT products and services. These products and services are offered through Branches, ATMs, Net-Banking and

Digital Banking Channels. All the CMOs, Cluster Offices, Service Branches, Currency Chests and other Administrative Offices are on CBS platform.

Majority branches are on MPLS and directly access PDC & DR through MPLS cloud. Branches which are on point to point link and not on MPLS, they are connected to aggregation points. Thereafter, all aggregation points are on MPLS. Further, if point to point links are down, the branches have been provided with VSAT / ISDN and branches can connect to PDC and DR through back up links.

The connectivity between Banks Primary Data Center, Mumbai and Disaster Recovery site, Delhi is from alternate service providers.

15.2 Disaster Recovery Setup (DRS)

Bank has implemented-3-way DR architecture through Primary Data Centre (PDC), Near Line Site (NLS) at Navi Mumbai and Disaster Recovery Site at Greater Kailash, New Delhi for Zero Data Loss for CBS. The data is synchronously replicated from PDC to NLS and is asynchronously replicated from NLS to DRS. This ensures that in case of any major problem at PDC, complete data of CBS can be made available at DRS within the shortest possible time.

15.3 Electronic Payment System

All the branches of the Bank offer inter-Bank remittances through RTGS, NEFT and IMPS. Internet Banking and Mobile Banking subscribers of the Bank are encouraged to use online facility of IMPS, RTGS and NEFT for inter-bank remittances. National Payments Corporation of India (NPCI) has implemented "National Automated Clearing House (NACH)" for Banks, Financial Institutions, Corporate and Government, a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. Bank has implemented NACH (Credit) and NACH (Debit) as Sponsor and Destination Bank and participating in routine operations.

New generation and feature rich bi-lingual Mobile Banking App (OBCmPAY) has been launched by the Bank on both the major mobile operating system platforms viz. Apple App Store and Android Play Store for its customers Envisaging the potential of digital banking, harnessing its potential and contributing towards less cash economy, Bank is offering Unified Payment System (UPI) through its own Mobile App BHIM Oriental Pay.

Bank has launched BHIM Aadhaar Merchant Application through which residents can pay to merchants through Aadhaar and biometric authentication. At every stage from on-boarding to transactions, SMS are being sent to merchants/ customers.

Government schemes like subscription to Public Provident Fund (PPF) and Atal Pension Yojana (APY), Sukanya Samriddhi Yojana, GST payments have been made available online through Banks Net Banking. Bank has provided functionality of Demographic Authentication through branches and OTP Based Aadhaar Authentication - Application Link is available in Corporate Website.

15.4 Corporate Website

Bank has displayed the details on the usage of various IT products and services along with Alerts on the Banks Corporate Website to create awareness. Online services provided by Bank include the Online Locker Availability facility, Account Opening, Loan Application Tracking, Complaints submission etc. As per government guidelines, Bank has implemented new online system driven grievances redressed system. Bank also partner with "psbloansin59minutes.com"

15.5 Information Security

Banks data centres are accredited with ISO 27001:2013. Bank has established robust, scalable, state-of-the-art IT Security Infrastructure including Firewalls, IPS (Intrusion Prevention System), Anti-virus and Security Tools etc. to secure and safeguard Banks Critical assets. Bank has deployed the state of the art SOC Tools viz. SIEM, NBA, PIM, IT-GRC solutions etc. to do proactive monitoring and prevention of security incidents on 24x7x365 days basis.

16. HUMAN RESOURCE DEVELOPMENT AND TRAINING

In order to meet the challenges ahead, the Bank has planned strategies for optimum utilization of existing Human Resources by enhancing their skills through the channel of Training. During theyear,Bankrecruited 195 Specialist Officers, 113 Probationary Officers, 396 Clerks and 17 Sub-staff. At the end of March, 2019, the Bank had total staff strength of 21729, comprising 12929 Officers, 6601 Non-Subordinates and 2199 Subordinates. During FY 2018-19, the Bank has completed 79843 Training Man-days in the Bank. The Bank has complied with Government guidelines in respect of reservation, recruitment and promotion for SC/ST/OBC/PWD/ EXSM besides extending concessions/relaxation as prescribed. The grievances of SC/ST/OBC employees, if any, were resolved through SC/ST Cell created at all Circle Offices and Corporate Office under the charge of Liaison Officers / Chief Liaison Officer.

As at the end of March 2019, all 5 Human Resource Development Institutes (HRDIs) had obtained ISO certification.

Industrial Relations

The Bank continues to pursue the principle of Participative Management. The Workmen Union, Officers Association and the Management worked together for the all-round prosperity and growth of the organization. The Grievance Redressal Mechanism in the Bank is quite effective and facilitates enables prompt resolution of grievances of employees, through mutual and bilateral discussions in the regularly held industrial relations meetings.

17. COMPLIANCE

The Bank has put in place a Compliance Policy, based on the guidelines of Reserve Bank of India. The Compliance vertical headed by the Chief Compliance Officer (General Manager) monitors the compliance of the statutory / regulatory / internal guidelines in force from time to time at corporate as well as field level.

18. RISK BASED SUPERVISION

SPARC (Supervisory Program for Assessment of Risk and Capital) of RBI is risk focused and intended to increase the effectiveness andefficiency of the supervisory process as the supervisor would apply differentiated supervision to banks based on their individual risk profile. Under SPARC, supervisors appraise each bank on two aspects i.e. the risk faced by a bank and the capital position. SPARC uses a scorecard based approach wherein the results of assessment of the Bank act as an input for the IRISc model which is a structured and multi-tiered model that supports the assessment of risks in a bank adjusted for the capital available. SPARC is a detailed qualitative and quantitative assessment of the Banks risks by the Supervisor on an ongoing basis through combination of offsite and onsite monitoring tools.

Six Cycles of RBS i.e. 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2017-18 have been completed. Risk Assessment Report (RAR) i.e. RBI report under ISE is provided on yearly basis after each inspection which includes Supervisory Capital Prescription, Supervisory Rating, Supervisory Stance and Risk Mitigation plan (RMP). RMP appraises the Bank about the key risk areas identified by the Supervisor amongst various risk groups including somespecific observations on inherent and control risks. Under this, the Supervisor suggests measures to control Risk/inherent Risk and/or additional capital required over and above the minimum regulatory capital. The Bank takes necessary steps for compliance of RBI observations as highlighted in RAR and RMP within the stipulated timelines and confirms the same to RBI on an ongoing basis.

19. IND AS - STRATEGY AND PROGESS

The Reserve Bank of India (RBI) vide DBR.BP.BC.No. - 76/21.07.001/2015-16 dated 11^th February 2016, prescribed the roadmap for implementation of Indian Accounting Standards (Ind AS) in the Banks in India. As per the guidelines, Banks need to disclose in the Annual Report, the strategy for Ind AS implementation, including the progress made in this regard. Accordingly, to oversee the progress of Ind AS, the Project Steering Committee (PSC) had also been constituted which is headed by the Executive Director and comprises of General Managers from various cross functional areas of the Bank. The Audit Committee of the Board and the Board of Directors are also being apprised of the progress on regular basis. Further, the Bank has a Consultant for implementation of Ind AS. In the past, the RBI periodically called for Proforma Ind AS Financial Statements which were duly submitted. The RBI further advised the Banks to submit Proforma Ind AS Financial Statements every quarter, starting from quarter ended 30^th June 2018 within 15 days of declaration of quarterly results or within 60 days from the end of the quarter, whichever is earlier. These Proforma Financial Statements are for regulatory analysis purpose only and may not necessarily be completely Ind AS compliant or indicative of the final format to be specified in the Third Schedule to the Banking Regulation Act, 1949.

Accordingly, the Bank has submitted Proforma Ind AS Financial Statements as per the format / template for the periods ended 30^th June 2018, 30^th September 2018 and 31^st December 2018 (Transition date 01^st April 2018) within stipulated time, to the RBI.

RBI vide Notification No.DBR.BP.BC.No.29/21.07.001/2018-19- dated 22^nd March 2019 has deferred the implementation of Ind AS till further notice. However, the submission of Proforma Ind AS Financial Statements shall continue as hitherto. Further, the deferment will not affect the pace of Banks preparedness of Ind AS implementation.

20. RATIOS

S. No.	Industry specific Ratios	FY 31.03.2019	FY 31.03.2018	% change	Explanations
1	Common equity Tier -1 (%)	9.86	7.46	32.17%	The CET-1 has increased from Rs. 10995.50 crore as on 31.03.2018 to Rs. 14440.54 crore as on 31.03.2019 i.e. by Rs. 3445.04 crore as compared to proportionate increase in Risk Weighted Assets.
2	Tier 1 (%)	9.98	7.61	31.14%	The Tier-1 capital has increased from Rs. 11216.28 crore as on 31.03.2018 to 14611.28 crore as on 31.03.2019 i.e. by Rs. 3395 crore as compared to proportionate increase in Risk Weighted Assets.
3	Return on Assets (%)	0.02	-2.31	-100.87%	In FY 2018-19 the Bank has earned net profit of Rs. 54.99 crores as compared to a loss of Rs. 5871.74 crore in FY 2017-18.
4	Return on Equity (%)	0.46	-51.14	-100.90%	In FY 2018-19 the Bank has earned net profit of Rs. 54.99 crore as compared to a loss of Rs. 5871.74 crores in FY 2017-18.
5	Net NPA (%)	5.93	10.48	-43.42%	During FY 2018-19, net NPA have decreased by Rs. 4843.24 crore mainly due to following:
					1) Lower Fresh Slippages : Fresh slippages has reduced to Rs. 7066 crore in FY 2018-19 from Rs. 12429 crore in FY 2017-18 i.e decrease by 43.15%.
					2) Cash Recovery plus upgradation :Total cash recovery and upgradation in accounts has increased to Rs. 6597 crores in FY 2018-19 as compared to Rs. 3161 crore in FY 2017-18 i.e. increase by 108.68%.
6	Gross NPA (%)	12.66	17.63	-28.19%	During FY 2018-19, gross NPA have decreased by Rs. 4416.57 crore mainly due to following:
					1) Lower Fresh Slippages : Fresh slippages has reduced to Rs. 7066 crore in FY 2018-19 from Rs. 12429 crore in FY 2017-18 i.e decrease by 43.15%.
					2) Cash Recovery plus upgradation : Total cash recovery and upgradation in accounts has increased to Rs. 6597 crores in FY 2018-19 as compared to Rs. 3161 crore in FY 2017-18 i.e. increase by 108.68%.
7	Net Interest Margin (%)	2.73	2.18	25.23%	Net interest income of the Bank has increased to Rs. 5498.12 crores in FY 2018-19 against Rs. 4500.76 in FY 2017-18.
8	Credit Cost Ratio (%)	4.03	6.07	-33.61%	Credit cost ratio has decreased due to decrease in credit related costs /provisions.
9	Earning per Share (Rs.)	0.77	-168.09	-100.46%	In FY 2018-19 the Bank has earned net profit of Rs. 54.99 crores as compared to a loss of Rs. 5871.74 crores in FY 2017-18.
10	Profit / Loss per Employee (Rs. in lakhs)	0.25	-26.72	-100.94%	In FY 2018-19 the Bank has earned net profit of Rs. 54.99 crores as compared to a loss of Rs. 5871.74 crores in FY 2017-18.
11	Book Value per share (Rs.)	100.59	162.86	-38.24%	Book value per share has decreased despite increase in net worth of the bank by Rs. 3477.59 crores because percentage increase in number of shares outstanding (116.54%) is much higher than the percentage increase in net worth (33.75%).
12	Net Worth (Rs. In lakhs)	1378299	1030540	33.75%	Net worth of the bank has increased due to following reasons:
					1) Infusion of capital of Rs. 6686 by GOI
					2) ESPS issue of Rs. 250 crores
					3) Profit for the year 54.99 crores Further due to increase in Deferred tax assets it has reduced by Rs. 3418 crores in financial year 2018-19.

21. OPPORTUNITIES & THREATS

The Bank has a wide spread geographical presence throughout the country with 2390 branches and 2625 ATMs. The presence of Banks almost 50% branches in rural and semi-urban areas provides the opportunity to increase the share of retail credit and priority sector advances.

The Banks turnaround, exit from PCA, reduction in NPA level, capital infusion by GOI and oversubcription of ESPS by the employees have been the major positive factors for the Bank during FY 2018-19 and all these factors provide opportunity to build up and show better performance in the near future.

The deterioration in asset quality has been checked, however the sheer volume of bad assets at present is still an issue and is going to affect the bottom-line of the Bank. The new entrants in the Banking Industry are also going to provide tough competition.

Outlook of Economic Growth in FY 2019-20 is optimistic and the Indian Banking Industry is also expected to show improved performance.

22. USE OF OFFICIAL LANGUAGE IN THE BANK

During FY 2018-19, the Bank continued its concerted efforts to increase the use of Official Language (Hindi) and to comply with the guidelines/instructions received from Government of India, Parliamentary Committee and RBI on Official Language. Bank has taken strong and effective measures to achieve the targets of Hindi as prescribed in Annual Program 2018-19 issued by Official Language

Department, Ministry of Home Affairs, Government of India. Bank has been rewarded by Various Town Official Language Implementation Committees for doing excellent work in Hindi. Circle Office, Jaipur received First prize under Rajbhasha Shield Yojna, 2017-18 instituted by Town Official Language Implementation Committee, Jaipur. Besides, Circle Offices Raipur, Jalandhar, Meerut & Kolkata received Third Prize and Circle Office Panchkula has been awarded Consolation Prize by concerned Town Official

Language Committees.

Our various Circle Offices & other offices were visited by Third Sub-committee of Parliamentary Committee on Official Language, Department of Financial Services, Ministry of Finance & Ministry of Home Affairs. The visiting officials appreciated the efforts being made by the Bank towards improvement of progressive use of Hindi. Progress made in use of Hindi in IT: Facility of generating ATM Transactions Slips in Hindi was introduced for customers ???

SMS alerts in Hindi were sent to Customers.

Banks website and OBC Portal is available in Hindi Unicode also in addition to English.

Bilingual facility has been provided on Finacle, through which Pass Book, CDR/FDR can be provided to customers in Hindi as well. ???

HRMS has been made available in Hindi enabling the Staff to generate their Bio-Data, Salary Slip, Pension & Gratuity statements in Hindi.

Rajbhasha Vibhag, Ministry of Home Affairs, Government of India has given the responsibility of convener of Town Official Language

Implementation Committees to Lead Bank Palwal & Lead Bank, Firozpur of Bank. Half-yearly meetings along with Hindi Workshops were organized by these Committees during the financial year 2018-19.

23. BRANCH NETWORK:

: As on 31^st March 2019, the total number of branches stood at 2390, as against 2389 as on 31^st March 2018. Category-wise classification of branches is as under:

Classification	31.03.2019
Rural	564
Semi-urban	626
Urban	607
Metropolitan	593
Total	2390

24. WAY FORWARD

The Banks Vision and Mission Statement is "To be a customer friendly premier bank committed to enhancing stakeholders value. Provide quality, innovative services with state-of-the-art technology in line with customer expectations. Enhance employees professional skills and strengthen cohesiveness. Create wealth for customers and other stakeholders."

	For and on behalf of the Board
Place: Gurugram	(Mukesh Kumar Jain)
Date: 13th May 2019	Managing Director & CEO