State Bank of Travancore

BSE: 532191 | NSE: SBT | ISIN: INE654A01024 
Market Cap: [Rs.Cr.] 3,037.93 | Face Value: [Rs.] 10
Industry: Banks - Public Sector

Director's Report

Report of the Board of Directors to the State Bank of India, the Reserve Bank of Indiaand the Central Government in terms of Section 43(1) of State Bank of India (SubsidiaryBanks) Act, 1959.

Period covered by the Report: 1st April, 2013 to 31st March, 2014


1.1 Global Economy

Global growth is likely to be in the vicinity of 3 per cent in 2014-15, about apercentage point higher than in 2013-14. The expansion in global output is expected to beled by Advanced Economies (AEs), especially the US. However, downside risks to growthtrajectory arise from ongoing tapering of Quantitative Easing (QE) in the US, continuingde_ation concerns and weak balance sheets in the euro area and inflationary pressures inthe Emerging Market and Developing Economies (EMDEs). Weakening growth and financialfragilities in China that have arisen from rapid credit growth in recent years also pose alarge risk to global trade and growth.

Global inflation remains benign with activity levels staying below potential in theAdvanced Economies as well as in some of the large emerging market and developingeconomies and a softer bias for global commodity prices continuing into 2014.

The global financial markets have weathered the initial dose of actual tapering of theQuantitative Easing (QE) by the US Fed, quite well. However, the global interest ratecycle has just begun to turn. Any large withdrawal of monetary accommodation by advancedeconomies and consequent effect on capital flows to and from Emerging Market andDeveloping Economies (EMDEs) could lead to volatility and could translate into liquidityshocks impacting asset prices.

1.2 National Economy

GDP growth has been stagnant at around 5% during the year. This is attributable to thecontinued weakness in industrial activity and supply side constraints.

A moderate recovery is likely to set in 2014-15 broadly in line with the ReserveBank’s indicated projections in January 2014. The recovery is likely to be supportedby investment activity picking up due to part resolution of stalled projects and improvedbusiness and consumer confidence. Manufacturing PMI, for the month of February 2014,touched a year’s high on the back of higher output and new orders. The rural demandbase is likely to shore up demand, following record agricultural output.

While the global environment remains challenging, policy action in India has rebuiltbu_ers to cushion it against possible spill overs. There was curtailment of deficit (bothCurrent & Fiscal). There was also adjustment of rupee exchange rate and replenishmentof foreign exchange reserve which resulted in lowering of risk of near-term macroinstability. However, more efforts in terms of removing structural impediments, buildingbusiness confidence and creating fiscal space to support investments will be needed tosecure growth.

1.3 Kerala Economy

Kerala’s economy is one of the fastest growing economies in the country. Keralahas won international recognition for its outstanding achievements in Health and Educationsectors. The prime driver of the economy still is the remittance from abroad by 22 lakhsNon- Resident Indians, mainly from Gulf Countries. Economy in Kerala is supported bytraditional industries. Coir, Cashew, Bricks and Tiles, Oil Milling, Handloom and Timberemploy 83% of the total work force in the industrial sector.

Kerala contributes 97% of national pepper production and accounts for 85% of the areaunder natural rubber cultivation in the country. Coconut, tea, coffee, cashew, and spices— including cardamom, vanilla, cinnamon, and nutmeg — form a major part of theagricultural sector. In addition to this, rice is extensively grown in Kerala.Nevertheless, home gardens comprise a significant portion of the agricultural sector.

Tourism continues to flourish and plays an important role in the State’s economy.IT sector is on a growth path with flagship Techno Park at Thiruvananthapuram and TechnoCity at Ernakulam gaining further momentum. The proposed Info Park and Smart City nearKochi, are expected to propel Kerala to become one of the leading IT destinations in thecountry. Mega Projects like Vallarpadam International Container Trans-shipment Terminalwill give a fillip to the economy. The proposed Vizhinjam International DeepwaterMultipurpose Seaport at Thiruvananthapuram is expected to give boast to the State’seconomy. The Kannur International Airport project is expected to transform the NorthMalabar region into a highly developed Centre for Travel, Tourism and Industries.

1.4 Banking Environment

The resilience and stability of the domestic financial system have become essential tothe country’s macroeconomic stability, particularly in an increasingly integratedworld. Indian Banking sector demonstrated strong resilience during the global financialcrisis and was able to maintain stability. In India, reforms have continued with a view tobuilding a robust and resilient financial system. More stringent capital and liquiditymeasures for Commercial Banks have been implemented and steps have been taken to build upCapital Conservation Bu_ers (CCB). RBI has initiated the steps for implementation of theBasel III norms embedded with provisions and guidelines for higher capital adequacy. Thekey focus areas for Indian Banks include, liquidity management; gainful deployment offunds; availability of cheaper technology to serve thinly populated unbanked areas;grooming suitable replacement for large number of experienced manpower due for retirement;IT security; advanced Risk Management approaches; and introduction of innovative products.The Indian Banking sector is continuing to grow with rapid transformation, with almost allthe Banks having migrated to Centralised Core Banking Environment, supported by technologyenabled products viz. mobile banking, net banking and smart cards.

1.5 ASCB Performance

All Scheduled Commercial Banks Deposits grew by Rs 9,87,970 crore (14.63%) between 22ndMarch, 2013 and 21st March, 2014 to reach a level of Rs 77,39,390 crore as on 21st March,2014. The Gross Advances grew by Rs 7,50,260 crore (14.25%) in the same period to touch alevel of Rs 60,13,090 crore. Food credit increased by 2.13% to touch Rs 98,480 crore. NonFood credit grew by 14.48% and reached the level of Rs 59,14,610 crore.

1.6 Regulatory Measures and Monetary Policy

The year 2013-14 witnessed a series of monetary measures initiated by Reserve Bank ofIndia to contain rising inflation and arresting the weakening of rupee. Further,liberalisation in the Branch Authorisation Policy and adoption of more stringent securitymeasures for electronic payment system were announced. The Reserve Bank of India granted"in-principle" Bank license to Infrastructure Development Finance Co and BandhanFinancial Services Ltd.

Some of the main policy changes and reforms announced by RBI during the year were asunder:

• Repo rate moved from 7.5% to 8%.

• Cash Reserve Ratio (CRR) of Scheduled Commercial Banks maintained at 4.0 percent of Net Demand and Time Liability (NDTL).

• Increased liquidity provided under 7-day and 14-day term repos.

• The reverse repo rate moved in tandem with repo rate and is presently at 7.0 percent.

• The Marginal Standing Facility (MSF) rate and the Bank Rate are presently at 9.0per cent.

• Under the new RBI Branch Authorisation Policy, Banks can now open brancheswithout taking prior permission from RBI, subject to reporting. To provide enhancedbanking services in Tier 5 and 6 centres (Rural), domestic Scheduled Commercial Banksshould necessarily open 25% of the branches, in unbanked rural centers.

• RBI has stipulated higher provisioning norms on Restructured Assets.

2. The Bank’s Operations and Performance

2.1 Total Business

The Bank’s gross business crossed Rupees One Lakh Sixty

Thousand crore during FY 13 – 14. The total business of the Bank reached the levelof Rs 1,60,119 crore as on 31st March, 2014, from

Rs 1,52,108 crore as on 31st March, 2013 showing a growth of 5.27%.

It comprises of a total deposit of Rs 89,337 crore and Gross Advances of Rs 70,782crore.

2.2 Working Results and Operating Profit

Operating profit (after Staff Provisions) for the year ended 31st March, 2014 stood atRs 1,369.69 crore as compared to Rs 1,351.00 crore recorded for the year ended 31st March,2013. Net Profit for the year stood at Rs 304.34 crore as compared to Rs 615.04 crore forFY 2012–13, showing a decline of 50.52%.

The earnings per share (face value of Rs 10) was Rs 60.87 as on 31.03.2014 as againstRs 123.01 as on 31.03.2013.

The Net Interest Income increased by 11.98% from Rs 2,128.20 crore in FY 2012-13 to Rs2,383.15 crore in FY 13 -14. Net interest Margin (NIM) stood at 2.43% as on 31.03.2014.

2.3 Dividend

The Bank declared a dividend of Rs 2.50 per share (25%) for FY 2013-14, entailing atotal payout of Rs 12.50 crore. The dividend payout Ratio works out to 4.11% of the NetProfit.

2.4 Capital Adequacy

The Capital Adequacy ratio under Basel II stood at 11.52% as on March 31st, 2014 ascompared to 11.70% as on March 31st, 2013, against a minimum of 9% stipulated by RBI.Under Basel III, the Bank’s capital fund improved from Rs 5,671.43 crore as on 1stApril, 2013 to Rs 6,357.63 crore as on 31st March, 2014. This also includes, an amount ofRs 385 crore received from State Bank of India towards preferential allotment of Equityshares, pending allotment. The Capital Adequacy Ratio under Basel III improved from 10.74%as on 1st April, 2013 to 10.79% as on 31st March, 2014.

2.5 Deposits

Bank’s Aggregate Deposits showed a growth of 5.54% and stood at Rs 88,707 crore ason 31st March, 2014 compared to Rs 84,047 crore in the previous year. The Personal SegmentDeposits recorded an impressive growth of Rs 9,656 crore (18.36%) during the year, toreach a level of Rs 62,247 crore, which constituted 70.17% of Aggregate Deposits.

NRI Deposits also recorded an impressive growth of Rs 5,651 crore (29.26%) during theyear, to reach a level of Rs 24,963 crore. It constitutes 28.14% of the Aggregate Depositsof the Bank as on 31st March, 2014.

Total Deposits of the Bank (including Inter Bank Deposits) stood at Rs 89,337 crore ason 31st March, 2014 as against Rs 84,624 crore as on 31st March, 2013.

2.6 Advances

The Gross Advances of the Bank stood at Rs 70,782 crore as at the end of 31st March,2014 as against Rs 68,389 crore a year ago, registering a growth of 3.50%. Personalsegment advances grew by Rs 374 crore and reached a level of Rs 18,294 crore, whereas theC&I segment declined by Rs 311 crore and reached a level of Rs 34,901 crore.

The Retail lending stood at Rs 35,881 crore and constituted 50.69% of the GrossAdvances as at the end of 31st March, 2014. .

The Credit Deposit Ratio of the Bank as on 31st March, 2014 was 79.23% as against79.75% a year ago.

2.7 Market Share

The Bank’s market share in ASCB Deposits was 1.16% as on 21st March, 2014 ascompared to 1.22% as on 22nd March, 2013. The market share in Advances has come down from1.25% as on 22nd March, 2013 to 1.16% as on 21st March, 2014. The Bank’s All IndiaMarket share in total business as on 21st March, 2014 stood at 1.16%. (Source: RBI).

The Bank continued to maintain its position as the premier Bank in Kerala, with amarket share of 21.32% in business among all Commercial Banks ( as at the end of December2013) with a 14.06% share of the total branch network. In respect of NRI deposits, ourmarket share in the State was 24.24%. (Source SLBC, KERALA)

2.8 Priority Sector Lending

The Bank continued to give special emphasis on lending to the priority sector inconformity with national policies, expectations and fulfillment of social objectives.Bank’s Gross Advances to the Priority sector increased from Rs 24,378 crore as at theend of March 2013 to Rs 29,179 crore as at the end of March 2014 and constituted 42.26% ofthe Adjusted Net Bank Credit (ANBC), against the benchmark of 40%.

2.9 Agricultural Finance

The Bank disbursed an amount of Rs 10,408 crore under Agriculture segment as at the endof March 2014 against the Special Agricultural Credit Plan target of Rs 7,200 crore.Agriculture segment showed a growth of Rs 1,137 crore during the financial year 2013-14.Exposure to Agriculture segment reached a level of Rs 13,212 crore as on 31st March, 2014,which is 19.13% of ANBC, against a benchmark of 18%.

Haritha Campaign

The Bank conducted an intensive Agriculture lending campaign covering all agricultureloan products, called "HARITHA CAMPAIGN" during the financial year 13 – 14.

Farmer Clubs

Farmer Clubs meetings were conducted at various centre’s to give wide publicity tothe schemes available to farmers. Meetings were also conducted on the occasion ofFarmer’s Day.

2.10 Lending to Micro, Small and Medium Enterprises (MSMEs)

MSMEs play a major role in the country’s economic development. The Bank gives dueimportance for the growth of this vital segment of the economy. Total lending to MSMEsector as on 31st March, 2014 stood at Rs 11,460.54 crore, registering a growth of Rs2,230.31 crore over the previous year. The lending to Micro and Small Enterprises (MSEs)stood at Rs 7,774.10 crore which is 37.37% higher over the previous year level.

The growth in this sector was fuelled by an intensive MSME lending campaign conductedfrom 1st September, 2013 to 31st December, 2013. The total loan disbursement during theCampaign period was Rs 677 crore covering 3,699 accounts.

MSME segment achieved all the three RBI Bench marks i.e.

i) The year on year growth to Micro and Small Enterprises was 37.37% as against thebench mark of 20%.

ii) The increase in number of Micro accounts was 84.58% as against the bench mark of10%.

iii) Lending to Micro enterprises under MSE segment was 60.01% as against the benchmark of 60%.

The Bank was conferred with the National Award for excellence in lending to MicroEnterprises based on credible performance in lending to MSMEs during the year 2012- 13.The Bank has been receiving this award in succession for the second year and for the fifthtime since institution of the award i.e. from the year 2005-2006.

RTO – Tie up arrangement

Road Transport Operators (RTO) is an important sub segment under service segment. Therelaxation in security norms, reduction in interest rate and Tie up with automobilecompanies, contributed to the steady growth under this vital segment. Outstanding underRTO segment as on 31st March, 2014 was Rs 362.39 crore comprising of 10,096 accounts.

Prime Minister’s Employment Generation Programme (PMEGP)

The Bank actively supported the programme to generate employment for youth and stoodfirst in the State of Kerala surpassing the targets. The Bank financed 334 projects duringFY 13-14, against the target of 193 projects, registering an achievement of 173%. Thetotal outstanding under PMEGP scheme was Rs 64.04 crore.


The Bank is a Member Lending Institution of CGTMSE which provides guarantee cover tocollateral free loans. Bank made it mandatory to cover all eligible accounts up to a limitof Rs 50 lacs under CGTMSE. The Bank extended finance under this scheme to 15,699borrowers with a total outlay of Rs 679.28 crore upto FY 2013 – 14.

Specialised MSME Branches:

Bank opened three specialised MSME Branches at Kollam, Kozhikode and Palakkad duringthe financial year, taking the total number of specialized MSME branches to eight.

Lending to Women Entrepreneurs

Bank actively supported / encouraged lending to women entrepreneurs. Total lending towomen entrepreneurs stood at Rs 8,625.32 crore covering 7,69,851 borrowers. The exposureconstitutes 12.49 % of ANBC.

2.11 Commercial & Institutional Finance

The Bank’s performance under this Segment reached a level of Rs 34,901 crore as on31st March, 2014. This segment contributed 49.31% of Bank’s total advance,

Commercial Network (CNW) Branch System was introduced in the Bank for giving focusedattention to select branches to achieve substantial growth in large value advances.Commercial branches at Bangalore, Chennai, Ernakulam and New Delhi, Corporate FinanceBranch Mumbai, Mumbai Main and Karol Bagh Branch (New Delhi) were brought under thesystem. The 7 CNW branches put together have a business level of Rs 27,015 crore. CNWBranches’ Credit portfolio was Rs 21,225 crore, which is about 30% of the Bank’stotal advances.

With the objective of improving the market share in Corporate segment and enhancing thebusiness mix, Bank established a separate network called "Commercial BusinessNetwork" (CBNW).

The core idea behind the formation of CBNW is to cater to the banking needs of MidCorporates, emerging Business Groups and large SMEs which contribute to the Bank’sasset portfolio. Now, CBNW has in its fold, 13 branches across the country and it isproposed to add more branches during 2014-15.

CBNW Branches, being credit focused, have great potential to contribute towards thegrowth of business. At the end of 2013-14, the total business of CBNW was Rs 10,498 crore,with deposits at Rs 3,134 crore and advances at Rs 7,364 crore. CBNW branches contributed10.40% of the Bank’s total advances.

Project Finance Unit (PFU) was formed in the Bank in order to develop project appraisalskills in-house and also to prevent good business proposals from going past us for want ofTechno-economic viability (TEV) study. PFU facilitates Technical and Financial appraisalof Large, Medium and Small sized projects, which have not been vetted by agencies ofnational/ international repute. During the year, PFU received 30 proposals from variousbranches. 5 proposals with an aggregate limit of Rs 172.00 crore were sanctioned.

2.12 Personal Deposits

Deposits under Personal Segment grew from Rs 52,590.92 crore as on 31.03.2013 to Rs62,246.92 crore as on 31.03.2014 thus recording a growth of 18.36%. Domestic Deposits grewby Rs 4,004.55 crore while NRI deposits grew by Rs 5,651.45 crore. Personal Depositsconstitute 70.17% of the aggregate Deposits of the Bank.

2.13 Personal Finance

The Bank continued to be active in extending Personal Segment finance, mainly by way ofHousing Loans, Car Loans, Education Loans and Gold Loans. 13,785 housing loans aggregatingRs 2,029.21 crore were sanctioned during FY 13-14. Outstanding in Housing Loan stood at Rs9,500.75 crore as on 31.03.2014.

Similarly, 10,455 Vehicle loans aggregating Rs 517.60 crore were sanctioned during FY13-14. Outstanding in Vehicle loan stood at Rs 1,387.86 crore as on 31.03.2014

The Bank continued to support the younger generation to pursue higher studies byextending Education Loans under IBA Model Scheme. The Bank maintained its leadership inextending Education Loans in the State of Kerala. In FY 13-14, 6794 Education Loansamounting to Rs 217.76 crore were sanctioned, taking the total outstanding amount to Rs2,475.41crore as at the end of March 2014.

Social Banking

In conformity with the Government of India guidelines, Interest Subvention benefitswere passed on to the eligible borrowers under Housing loans and education loans schemes.

2.14 Treasury Operations

The Gross Investments of the Bank stood at Rs 28,035 crore as on 31st March, 2014 asagainst Rs 27,273 crore as on 31st March, 2013. Average investments during 2013-14 were Rs29,938 crore as against Rs 24,984 crore during 2012-13. The Revenue from investmentoperations (interest and dividend) for the year was Rs 2,211.92 crore as against Rs1,816.37 crore for the previous year. The average yield on investments was 7.44 % duringthe year as compared to 7.38% as on 31st March, 2013.

The Bank earned a profit of Rs 190.52 crore from Domestic Treasury Operations during FY2013-14 compared to Rs 131.18 crore during FY 2012-13. The total profit from Forexoperations during the year was Rs 80.91 crore as against Rs 25.29 crore as on 31st March,2013. Bank’s total Forex turnover during the year for merchant transactions was Rs26,973 crore compared to Rs 24,026 crore during the previous year. Interbank turnoverduring the year was at Rs 6,13,203 crore as against Rs 4,83,332 crore during the previousyear. The Bank is a member in MCX-SX (Multi Commodity Exchange) for trading in CurrencyFutures.

2.15 International Banking

The total profit from Forex operations during the year was Rs 80.91 crore as against Rs25.29 crore as on 31st March, 2013. The export finance extended by the Bank reached alevel of Rs 2,397.69 crore, recording a growth of 16.15 % YoY.

The Bank has entered into an agreement with Export Credit Guarantee Corporation ofIndia (ECGC) to cover its export credit portfolio. Accordingly, eligible accounts werecovered under Whole Turnover Packing Credit Guarantee (WTPCG) and Whole Turnover PostShipment Guarantee (WTPSG).

With a view to speeding up, issuing of Bank Realisation Certificate (issued toexporters) for claiming export incentives and as part of message exchange initiative ofDirectorate General of Foreign Trade (DGFT), the Bank has commenced digital transmissionof Bank Realisation Certificate (e-BRCs) through DGFT website.

2.16 Cross Selling

The Bank has been constantly endeavoring to meet the financial requirements of itscustomers by making available Life, Non-life insurance products as well as othernon-banking products like Mutual Funds and Credit Card. These products are dispensedthrough SBI Life Insurance Company, SBI General Insurance Company, SBI Mutual Fund and SBICards companies.

The Bank earned an amount of Rs 11.15 crore from cross selling business in FY 13 –14 as against Rs 9.87 crore during FY 12 – 13, thereby recording a YoY growth of 13%

Under Bancassurance, as part of financial inclusion, around 2,500 lives of rural poorwas covered under micro insurance schemes of SBI Life.

2.17 Asset Quality

The Bank continued to give, in a very dynamic manner, special focus to improve thequality of Assets and to ensure building up of well performing loan portfolio. The GrossNPA level of the Bank as on 31st March, 2014 stood at Rs 3,077 crore. The percentage ofGross NPA to Gross Advance stood at 4.35% compared to 2.56% as on 31st March, 2013. TheNet NPA level of the Bank as on 31st March, 2014 stood at Rs 1,929 crore. The percentageof Net NPA was 2.78% in FY 2013 – 14, compared to 1.46% as at the end of the previousyear.

A well built monitoring mechanism for recovery has been placed by constituting a Boardlevel Committee, besides a High Power Task Force with Top Executives as members, to reviewthe Non Performing Assets and build momentum for recovery. As a strategic initiative, anew cell has been formed to exclusively monitor recovery performance under loss assets.

The Asset Tracking System has been centralized and put in place effectively, for followup of irregular accounts by tele-calling. During the year 1,40,005 accounts were trackedand 54,200 accounts were regularized with a recovery of Rs 63.82 crore.

The Bank is continuously engaged in providing the right kind of rehabilitation packageto sick units to ensure revival of potentially viable sick industrial units.Rehabilitation / Restructuring packages are under implementation in respect of 22 unitswith a total exposure of Rs 1,569 crore, of which 20 units are under CDR scheme with anexposure of Rs 1,512 crore and 2 units under BIFR scheme with exposure of Rs 57 crore.

2.18 Government Business

The Bank maintains its status as the Principal Banker to Government of Kerala. The Bankhas been authorized by Reserve Bank of India to handle State Government Business at 132branches in the State of Kerala and 1 branch in Tamil Nadu. 415 Post Offices are linkedwith the branches, with a total turnover of Rs 5,139 crore. Bank is also undertakingRailway transactions in its 33 branches.

194 branches of the Bank are authorized by CBDT for collection of Direct Taxes byphysical mode (134 branches in Kerala and 60 branches outside Kerala) and 148 branches areauthorized by CBEC in Kerala for Indirect Taxes in physical mode. All branches areauthorized for e-payment of Direct and Indirect Taxes.

State Bank of Travancore is a Banking partner of the Government of Kerala in thee-tender / e-procurement project. E-payment facility launched by the Government of Kerala,through the Bank for the payment of Commercial Taxes is well received by the businesscommunity and the Bank recorded a Turnover of Rs 11,847 crore for FY 13 – 14.E-payment of Kerala State Excise License Fee, Rent, Vehicle Tax, Duty, collection of pettycase penalties and import fee are enabled through SBT Online.

Other e-payment initiatives include collection of Karnataka State Government Taxes,Commercial Tax and Sales Tax of Tamil Nadu, Professional Tax and Sales Tax payment ofMaharashtra State Government. Bank also started collection of property tax online inselected Corporations, Municipalities and Panchayaths in the state of Kerala.

The Centralised Pension Processing Cell (CPPC) has become fully operational with1,45,018 pensioners and generated an income of Rs 11.19 crore during 2013-14.

The Bank is having 114 currency chest branches in Kerala, 1 in Kar-nataka and 8 inTamil Nadu. In FY 13 – 14, the Bank earned Commission to the tune of Rs 58.15 croreby conducting Government business.

2.19 Electronic Payment Systems

Electronic Payments of the Bank are done by the Payment and Settlement Group whichfunctions from Belapur, Navi Mumbai. All the branches of the Bank are enabled forRTGS/GRPT/NEFT remittances. The total number of outward electronic remittances for theyear ended 31.03.2014 was 63,74,055 registering an increase of 32%, over the previousyear. While the number of transactions under RTGS recorded a growth of 14%, GRPT outwardtransactions and NEFT transactions increased by 50% in the current year. RTGS applicationwas moved over to an upgraded versions complying with ISO 20022 messaging protocol witheffect from October 2013. In order to improve customer service, one more settlement batchwas started for NEFT transactions at 8.00 AM during the year.

3. Marketing Initiatives and Development of New Products

The Bank continues to play its role in facilitating customer acquisition, retention andbroadening of customer base by conducting segment centric marketing drives.

3.1 The salary payments of most of the State Government Departments are nowdisbursed through the Bank. Corporate Salary Package, with attractive features, was rolledout to cater to the needs of the employees.

3.2 The Bank is the preferred Bank for almost all State Government Departments.

3.3 The Bank continues to be the main Banker to all the Universities in the Stateof Kerala and has branches in their campus.

3.4 The major achievement during FY 13 – 14 was the arrangement for payment ofsalary and pension for 80,000 KSRTC employees.

3.5 In order to provide one-stop service to customers, the Bank introduced a 3-in-1account for securities transactions. In this regard, Tie-up arrangement with SBICAPSecurities Ltd. (SSL) was put in place to enable the customers for opening of Demat andTrading accounts.

3.6 The State Lottery collection account to pool the funds of each District LotteryOfficers (DLOs) was rolled out.

3.7 A concept of "Mega Locker" was floated. The same was rolled out atKuravankonam branch as a pilot project.

3.8 Bank has tie-up arrangement with Maruthi Suzuki which facilitated sourcing ofcar loans.

4. Customer Service

Customer service is accorded top priority in the Bank and every endeavour is made toimprove the quality of service to the customers and redress their grievancesexpeditiously.

A well defined and full- fledged Customer Grievances Redressal Mechanism is put inplace in the Bank. An official of the rank of Deputy General Manager is placed as head ofthe Customer Service Department to give greater focus on redressal of complaints.

Bank has provided a facility (SMS SBT CARE) to the customers whereby they can send amessage from anywhere by SMS to 56363 or give a missed call to 9847198471 from theirmobile. The customer is contacted by the officials of the Bank and the complaints aretaken up for redressal on priority.

Bank has also established a call centre with toll free number: 1800 425 5566 whichenables the customers and general public to seek clarification on Bank’s products andservices.

5. NRI Services

The NRI deposits recorded a growth of Rs 5,651 crore during the year and achieved alevel of Rs 24,963 crore. Bank continues to maintain the First position among Banks in theKerala State in NRI deposits. Bank enjoys a market share of 41.50% among the Public SectorBanks in the State.

5.1 The NRI deposits constitute 28% of Bank’s total deposits. In order toprovide personalized service to the NRI Customers, Bank has opened NRI specializedBranches at Mumbai, Kottayam and Kollam during the current year, taking the total ofspecialized NRI branches to eleven. 5.2 Two more Relationship Managers have beendeputed to the Gulf countries during the year to strengthen Bank’s internationalpresence, taking the total number of Relationship Managers posted abroad to nine. Tie uparrangements were established with five more Exchange Houses in the Gulf countries duringthe year, taking the total number of such arrangements to 43. These Exchange Housesremitted Rs 38,000 crore to the State which was 50% of total remittance received by theState of Kerala in FY 13 – 14. 5.3 A new Current Account product, "SUKOON" was introduced exclusively for NRIs who wish to keep their savings, free ofthe interest, on account of their religious beliefs. The Rupee premium Deposit Account,was made available for longer periods – exceeding one year. A new foreign currencyloan product against the FCNR (B) deposits was introduced during the year. The facility toopen NRE accounts online was also introduced during the year.

6. Lead Bank Scheme

The Bank is undertaking the Lead Bank activities in three districts of Kerala -.Alappuzha, Kottayam and Pathanamthitta.TheLeadBanksinitiatedseveralstepsforsuccessfulimplementation of DBT/DBTL in these LeadDistricts. Financial Literacy programmes for Students, farmers and women entrepreneurswere also arranged in the lead districts. A Special Campaign was conducted on PrioritySector Advances particularly for extending Kisan Credit Cards. For widening the coverageof Banking services, a campaign for opening of Savings Bank accounts was conducted in theLead Districts.

6.1 Rural Self-Employment Training Institutes (RSETIs)

Bank has RSETIs in Wayanad, Pathanamthitta, Alappuzha, and Kottayam for providing skillup-gradation trainings to the rural youth with focus on Below the Poverty Line (BPL)category. The courses for which training is imparted include -

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Key Information

Key Executives:

Arudhati Bhattacharya , Chairman & Director

J Sadakkadulla , Director

C Rajkumar , Director

P V Prasad , Director (Workmen Employee)

Company Head Office / Quarters:

Poojappura P O,
Phone : Kerala-91-471-2359975/2351244 (10 Lines) / Kerala-
Fax : Kerala-91-471-2351137/2351861 / Kerala-
E-mail :
Web :


Integrated Enterprises (I) Ltd
Kences Tower,2nd Floor No 1,Ramakrishna Street,Chennai - 600 017

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