The Board is pleased to present the Banks Directors Report along with theAudited Balance Sheet as at 31st March 2014 and the Profit & Loss Account statementfor the financial year ended 31st March 2014.
MANAGEMENT DISCUSSION AND ANALYSIS
Macro Economic Scenario Global Perspective
Despite positive signs of recovery, global growth appears to be on a sluggish trail asmany of the emerging and developing economies are still struggling to overcome theirindustrial slowdown. The advanced economies are gradually strengthening, but the growth inemerging market economies are moderated due to weak investment outlook and tighter globalfinancial conditions. Some of the emerging market economies such as Brazil, Indonesia, andIndia are confronting high inflation and their currencies have also come under severepressure.
The growing uncertainty in terms of, prolonged political transitions in MENAP (MiddleEast, North America, Afghanistan and Pakistan), weak external environment, banking sectorfragilities, new policy challenges, US tapering of its quantitative easing measures andpolicy spillovers in major economies are some of the factors which have led to downsiderisks to global growth prospects. Besides, there is a risk of further bouts of volatilityin capital flows. For some economies, there is severe balance of payments disruption. TheEuro area growth is still lackluster owing to a pervasive demand slump.
As per the data published by IMFs World Economic Outlook in Jan. 2014, global GDPgrew by 3.0% in 2013 as against 3.1 per cent registered in 2012. United States GDPgrew by 1.9% in 2013 as against 2.8% in 2012. UK registered a buoyant growth of 1.7% in2013 as against 0.3% in 2012. Growth in Emerging Market and Developing Economies (EMDEs)dropped from 4.9 per cent in 2012 to 4.7 per cent in 2013, advanced economy declined from1.4% in 2012 to 1.3% in 2013. The Euro area showed a negative growth of 0.4% in 2013.
The recession of world economy has also been felt on the domestic economy as Indiacould not keep itself isolated from the aftermath impact of global meltdown which isevident by persistence in inflation, falling growth, weaker corporate balance sheet,deteriorating asset quality of the banks, fiscal imbalances and external sectorvulnerabilities. The sluggishness of manufacturing sector which has spilled over to othersectors of the economy is also taking a toll on the growth of usually resilient servicesector.
Though the recent policy reforms undertaken by Government of India and Reserve Bank ofIndia have contributed to some extent in arresting the downturn, the visible signs ofimprovements in economic conditions are expected to be seen in the year 2014-15.
The measures which have been taken to remove constraints facing the infrastructuresector will be crucial for growth revival. The recent announcement of tapering by US Fedby $ 10 billion may also have some impact on the $ - Rupee exchange rate. However RBI hastaken steps to avert the volatility.
Against this backdrop, the countrys GDP grew by 4.7% in 2013-14 (Q3, FY14)as against 4.5% registered in 2012-13.
The growth in agriculture, industry and services was placed at 3.6%, (-) 0.7% and 7.6%respectively as against 1.4%, 1.0% and 7.0% in 2012-13.
Overall growth in the Index of Industrial Production (IIP) was (-) 0.1 per cent duringApril-February 2013-14 as compared to 0.9 per cent in April- February 2012-13.
The money supply stood at Rs 95130.5 billion as at March 21, 2014 registering a y-o-ygrowth of 13.5 per cent as compared to 13.8 per cent in the corresponding period of theprevious year. Net foreign exchange assets (NFA) of Banking Sector grew by 15.3 per centy-o-y to Rs 18909.2 billion as at March 21, 2014 as compared to an increase of 6.9 percent on the corresponding period of the last year.
The average WPI inflation rate for last 12 months (April 2013 to March 2014) was 5.93per cent as compared to 7.35 per cent during corresponding period in 2012-13. The allIndia CPI inflation (combined) has decreased from 10.39 per cent in March 2013 to 8.31 percent in March 2014.
The aggregate deposits with Scheduled Commercial Banks (SCBs) stood at Rs 77394 billionas at March 21, 2014 registering a y-o-y growth of 14.6 per cent as compared to 14.2 percent during the corresponding period of the previous year.
The bank credit with Scheduled Commercial Banks (SCBs) stood at Rs 60131 billion as atMarch 21, 2014 registering a y-o-y growth of 14.3 per cent as compared to 14.1 per centduring the corresponding period of the previous year.
Scheduled Commercial Banks (SCBs) Investment in Govt. and other approvedsecurities stood at Rs 22217 billion as at March 21, 2014 registering a y-o-y growth of10.7 per cent.
External Sector Growth
The cumulative value of Exports for the period April-March 2013-14, in US dollar termswas USD 312355.45 million as against USD 300400.69 million for April-March 2012-13registering a y-o-y growth of 3.98%. Whereas the cumulative value of Imports for theperiod April-March 2013-14, in US dollar terms was USD 450949.04 million as against USD490736.66 million for April-March 2012-13 registering a decline of 8.11% on y-o-y basis.
Oil imports during April-March 2013-14 were valued at USD 167624.6 million which was2.2 per cent higher than USD 164040.6 million during April-March 2012-13. While non-oilimports during April-March 2013-14 were valued at USD 283324.4 million which was 13.3 percent lower than USD 326696.1 million during April-March 2012-13.
The trade deficit, in absolute terms, during April-March 2013-14 was estimated at USD138593.59 million which was lower than the deficit of USD 190335.97 million recordedduring April-March 2012-13.
Foreign exchange reserves stood at USD 303.67 billion as at March 28, 2014 as comparedto USD 292.64 billion as at March 29, 2013. Foreign Currency Assets stood at USD 276.40billion as at March 28, 2014 as compared to USD 259.72 billion as at March 29, 2013.
The rupee depreciated by 12.1 per cent against US dollar, 23.6 per cent against Poundsterling, 3.8 per cent against the Japanese yen and 19.5 per cent against euro duringMarch 2014 over March 2013.
NEW VISION & MISSION STATEMENTS
Originating from a small coastal village Udupi", Bank has traversed a longjourney digging its roots deeper and deeper and spreading its branches farther & widerto be known as a Large Public Sector Bank with business of over Rs 3.89 lakh crore.
To continue its tradition forward, Bank has come up with a new Vision & MissionStatement for creating a long-term destination and values for the organisation,understanding the trends and forces that will shape our business in the future.
Our Vision & Mission Statement, thus, serves as a guiding force in each and everyaspects of our business providing us detailed roadmap in terms of what to doand how to do for reaching our preferred destination.
"Be a leading financially strong universal bank, creating value forstakeholders through customer centric, technology driven and employee friendlyapproach".
1. Be a leading provider of banking solutions providing range of financialservices to all strata of society
a) Financial Supermarket with innovative, tailor made & flexible Bank products
b) Among top 5 PSBs in India on financial metrics with significant internationalpresence
c) Be a socially responsible Bank and leader in financial inclusion
2. Be a highly recognized and visible brand, known for its customer service
a) Passion to deliver excellent service at front desk with full product knowledge
b) Single point of contact solution for all customer issues
c) Quick and efficient grievances redressal
3 . Be the most preferred place to work where employees feel proud andmotivated
a) Young, energetic and motivated workforce with right person at the right place
b) Best in class HR initiatives including recruitment, training, talent management,succession planning etc.,
c) Well defined and transparent HR Policy, robust HRM for implementation of allinitiatives.
4. Have state of the art technology & infrastructure creating delightamong all stakeholders a) State of the art network infrastructure with zero downtime.b) Paperless banking environment, most user friendly digital channels c) Excellentinfrastructure and ambience at branches
5. To Deliver strong financial and operational performance
a) Business size of Rs 10 lac crores, 5000 branches, 8000
ATMs and Net NPA < 1%
b) Operating profit of > Rs 10000 crores, Consistently high dividend payout.
CORPORATE STRATEGY FOR 2013-14
In order to deliver consistently superior performance by overcoming businesschallenges, understanding industry trends and to pursue its corporate goal with morevigour and strength, Bank had opted "POTENTIAL" as its corporate strategyfor the financial year 2013-14 which signifies as under:
Pursue Business Goals
Nurture Sales Culture
Turn Around Time Reduction
I nnovate to Compete
Articulate Positive Attitude
PERFORMANCE HIGHLIGHTS OF THE BANK DURING THE FINANCIAL YEAR 2013-14
Capital & Reserves
Banks authorized share capital stood at Rs 3000 crore and the paid-up capital Rs624.58 crore (624584631 equity shares of Rs 10 each) during the financial year ended at31.03.2014.
The Reserves and Surplus of the Bank increased from Rs 9939.39 crore in 2012-13 to Rs11219.61crore in 2013-14 registering a y-o-y growth of 12.88 per cent over the previousyear.
Tangible Net Worth of the Bank (excluding revaluation reserves) improved significantlyfrom Rs 9296 crore as at March 31, 2013 to Rs 10663 crore as at March 31, 2014.
The Board of Directors of the Bank has proposed a Final Dividend of 30 per cent for theyear ended March 2014. This is in addition to an Interim Dividend of 25 per cent paid inJanuary 2014. For the whole year, the Total Dividend is 55%. The Total outgo in the formof dividend (inclusive of dividend tax) during the year 2013-14 was Rs 401.91crore asagainst Rs 471.85 crore of the previous year.
The global business of the Bank grew by 16.07 per cent from Rs 334779 crore in 2012-13to Rs 388584 crore in 2013-14, whereas, Banks domestic business rose by 13.51 percent from Rs 291337 crore in 2012-13 to Rs 330701 crore in 2013-14.
Global deposits of the Bank grew by 14.56 per cent from Rs 185356 crore in 2012-13 toRs 212343 crore in 2013-14. Domestic deposits grew by 11.92 per cent from Rs 167055 crorein 2012-13 to Rs 186966 crore in 2013-14.
Domestic CASA deposits of the Bank increased from Rs 51926 crore in 2012-13 to Rs 55911crore in 2013-14, registering a growth of 7.67 per cent. Percentage of domestic CASA todomestic deposits stood at 29.90 per cent as at 31.03.2014.
The Banks global advances rose from Rs 149423 crore in 2012-13 to Rs 176241 crorein 2013-14 registering a growth of 17.95 per cent. Domestic advances grew by 15.65 percent from Rs 124282 crore in 2012-13 to Rs 143735 crore in 2013-14. The global creditdeposit ratio stood at 83.00 per cent in 2013-14 as compared to 80.61 per cent of the lastyear.
Priority Sector Advances increased from Rs 46437 crore in 2012-13 to Rs 52016 crore in2013-14 forming 43.19 per cent of ANBC as against mandatory level of 40 per cent.
Direct Agriculture Advances increased from Rs 16018 crore in 2012-13 to Rs 18807 crorein 2013-14 forming 15.62 per cent of ANBC as against mandatory level of 13.50 per cent.
MSE Advances increased from Rs 15074 crore in 2012-13 to Rs 18697 crore in 2013-14registering a growth of 24.03 per cent.
MSME Advances increased from Rs 16428 crore in 2012-13 to Rs 19800 crore in 2013-14registering a growth of 20.52 per cent.
The Bank has registered an increase of 3.29 per cent in Operating profit from Rs3449.59 crore in 2012-13 to Rs 3562.95 crore in 2013-14.
Net profit of the Bank declined by 14.62 per cent from Rs 2004.42 crore in 2012-13 toRs 1711.46 crore in 2013-14.
Business per employee of the Bank improved from Rs 12.57 crore as at March 31, 2013 toRs 14.30 crore as at March 31, 2014. Profit per employee stood at Rs 6.83 lakh as at March31, 2014 as compared to Rs 8.11 lakh as at March 31, 2013.
Income & Expenditure
The Banks Total income rose by 9.02 per cent from Rs 18295.05 crore in 2012-13 toRs 19945.21 crore in 2013-14.
The Banks interest income rose by 8.76 per cent from Rs 17120.69 crore in 2012-13to Rs 18620.33 crore in 2013-14.
The non-interest income of the Bank improved by 12.82 per cent from Rs 1174.36 crore in2012-13 to Rs 1324.88 crore in 2013-14.
The Interest expenditure of the Bank increased by 12.12 per cent from Rs 11666.63 crorein 2012-13 to Rs 13080.51 crore in 2013-14.
Operating expenditure of the Bank increased by 3.87 per cent from Rs 3178.83 crore in2012-13 to Rs 3301.75 crore in 2013-14.
Important Financial Ratios
a) The Return on Assets stood at 0.78 per cent in 2013-14 as compared to 1.07 per centin 2012-13.
b) The Banks Net Interest Margin (NIM) stood at 2.79 per cent in 2013-14 ascompared to 3.19 per cent in 2012-13.
c) The yield on advances of the Bank stood at 9.59 per cent in 2013-14 as compared to10.51 per cent in 2012-13.
d) The cost of deposits of the Bank stood at 6.56 per cent in 2013-14 as compared to6.83.per cent in 2012-13.
e) The Earning Per Share (EPS) of the Bank stood at Rs 28.21 in 2013-14 as compared toRs 33.30 in 2012-13.
f) The Book Value per share of the Bank improved from
Rs 175.12 in 2012-13 to Rs 189.63 in 2013-14.
g) Net NPA percentage to net advances stood at 1.56 per cent in 2013-14 as compared to0.76 per cent in 2012-13.
h) Gross NPA percentage to Gross Advances stood at 2.62 per cent in 2013-14 as comparedto 1.99 per cent in 2012-13.
i) NPA provision coverage ratio of the Bank stood at
70.02 per cent as at March 31, 2014 as compared to
83.41per cent as at March 31, 2013.
j) The Capital Adequacy Ratio (CRAR) of the Bank, as per Basel II stood at 12.01 percent in 2013-14 as compared to 12.59 per cent in 2012-13. The Capital Adequacy Ratio(CRAR), as per Basel III stood at 11.41per cent as at 31.03.2014
k) Dividend on equity shares stood at 55 per cent in
2013-14 as compared to 67 per cent in 2012-13.
EXPANSION OF BRANCH NETWORK
During the year the Bank has added 317 brick and mortar branches to its network and theTotal number of branches (including London Branch) stood at 3251 as on 31.03.2014. Theseinclude 78 branches in under banked Districts and 63 branches in minority concentrationDistricts.
Out of the above, 8 branches are opened in the North Eastern Part of India during theyear. Bank opened a branch in Daman and with this Bank has presence in all the States& Union territories of India. Bank also opened Mid corporate branches during the year.Bank opened one all women branch at Makupura, Ajmer. With this the Total number of allwomen branch comes to 4.
As per RBI guidelines, Banks are required to open 25% of the new branches at ruralunbanked tier 5-6 centres. As on 31.3.2014, there is a shortfall of 10. These shortfallswill be made good within the next financial year (2014-15) to comply with RBI guidelines.
The domestic branch network consisted of 1032 rural branches, 856 semi-urban branches,704 urban branches, 658 metro & port town branches. ATMs installed reached to 1946 asat 31.03.2014.
The bank has a customer base of 33.9 million as at March 31, 2014 as against 32 millionat the end of the previous fiscal, registering a growth of 5.62 per cent.
Retail lending continued to be the thrust area of the Bank. Outstanding retail lendingof the Bank reached Rs 20925.92 crore as at March 2014. The outstanding housing loans(direct) increased to Rs 9713.62 Crore, constituting 46.42% of the Total retail lendingportfolio of the Bank. Over the years, the Bank has supported promising student to pursehigher education in India and abroad. The Banks education loan portfolio increasedto Rs 2768.24 crore, constituting 13.23% of the Total retail lending portfolio of theBank. The Bank financed more than 1.16 lakh students as at March 2014.
The Bank took several measures during the year to expand retail credit. Uniform Rate ofInterest at Base Rate was fixed irrespective of the loan amount in respect of bothexisting and new housing loan borrowers. Schemes for payment of service charges to theapproved builders for sourcing housing loan proposals and Four Wheeler Dealers and theirsales executives for sourcing four wheeler loan proposals were launched by the Bank duringthe year. Rate of interest on Gold loans was rationalized and made uniform to bothpriority and non-priority gold loans. Tie-ups with leading car manufacturing companieswere renewed to boost vehicle loan advances. Tie-ups with premier educational institutionswere executed to mobilize education loan proposals. The Bank also took steps to havetie-ups with leading PSUs/MNCs/Govt Departments for extending loans to their employees atconcessional rates of interest. The rates of Interest on vehicles loans and loans forpurchase of consumer durables were slashed down during the year. The processing charges onhousing loans and vehicle loans were also reduced to compete in the market. The rate ofinterest on loans against the rent receivables was also reduced to mobilize business underthis segment. The Bank actively participated in various Exhibitions /Expos on housingloans and education loans, besides holding meets of car dealers and builders during theyear to build brand image of the Bank and to mobilize substantial business.
In order to ensure quality housing loan portfolio, the Bank adopted approvedbuilders route to extend housing loans. The Bank also identified large number ofreputed builders across the country and approved them to boost housing loan portfolio. TheBank has 17 Central Processing Centers (CPCs) for expeditious disposal of housing loanproposals across the country. The Bank also launched incentive schemes to thebranches/regional offices and central processing centers to encourage the staff toredouble their efforts in canvassing new business. The Bank also launched incentive schemeto the branches and regional offices to encourage the staff to mobilize gold loanbusiness.
CORPORATE CREDIT DEPARTMENT
Delegated sanctioning powers of Credit Approval Committee (Tier I) (Committee headed bythe Chairman & Managing Director) has been increased to Rs 400 crore for credit and Rs400 lakh in respect of recovery proposals.
Credit Approval Committee (Tier II) has been constituted headed by Executive Directorat Corporate office to dispose of credit upto Rs 75 crore and recovery involving sacrificeof Rs 75 lakh for speedy disposal of the proposals.
Delegated sanctioning powers of Credit Approval Committee (Tier III) (Committee headedby the General Managers) has been increased to Rs 50 crore for credit and Rs 45 lakh inrespect of recovery proposals.
MID CORPORATE DEPARTMENT
Mid Corporate Department at Corporate office is handling proposals between Rs 35 croreto Rs 100 crore, including Commercial Real Estate, MFIs, Infrastructure, New Businessgroup. 68 branches were designated as Mid Corporate branches across the country, thesebranches are having advances outstanding of Rs 14240 crore as on 31.3.2014.
Bank is planning to open 30 Specialized Mid Corporate branches in key cities of thecountry to have a focused attention to the Mid Corporate Clientele.
Bank is expecting incremental business of Rs 5000 crore from these new branches for2014-15. These Specialized branches will be posted with trained and experienced people upto the cadre of Asst. General Manager and will focus only high value credit growth and noretail business will be entertained.
PROJECT APPRAISAL & SYNDICATION CELL
Project Appraisal Cell has been constituted for preparation/ vetting of TEV study/IMstudy in respect of term loan proposals involving project of Rs 50 crore and above, withBank finance of Rs 25 crore and above. This initiative will reduce the turn around time(TAT) for credit proposals as well as providing such services to our branches at a shortnotice.
A Syndication Cell has been constituted headed by a Dy.General Manager for arrangingloans under syndication. This initiative will increase the fee based income for the Bankand also will help in creating quality high value high yielding assets for the bank andalso for improving the NIM of the Bank.
PRIORITY SECTOR CREDIT
(Amount Rs in crores)
|Parameters ||March-12 ||March-13 ||March-14 |
|Priority Sector ||41383 ||46437 ||52016 |
|Advances || || || |
|Total Agriculture ||17409 ||20156 ||22071 |
|Of which: || || || |
|Direct ||13585 ||16018 ||18807 |
|Indirect ||3824 ||4138 ||3264 |
|Micro & Small ||13360 ||15074 ||18697 |
|Enterprises || || || |
|Other PSA ||10614 ||11207 ||11248 |
|Advances to SC/ST ||3284 ||3712 ||4243 |
|Weaker Section ||11034 ||11918 ||12758 |
|advances || || || |
|Advances to Women ||7344 ||8245 ||8981 |
|Advances to Minority ||6609 ||7601 ||8308 |
|Communities || || || |
Achievement of national Goals (% to ANBC)
|Area/Sector ||Mandatory Requirement ||March- 12 ||March- 13 ||March- 14 |
|Priority Sector || || || || |
|Credit ||40% ||45.21 ||44.62 ||43.19 |
|Of which : || || || || |
|Total Agriculture ||18% ||19.02 ||19.37 ||18.33 |
|Direct Agriculture ||13.5% ||14.84 ||15.39 ||15.62 |
|Weaker section || || || || |
|Advances ||10% ||12.06 ||11.46 ||10.60 |
|Credit to Women ||5% ||8.03 ||7.93 ||7.46 |
|Credit to Minorities || || || || |
|(% to PSA) ||15% ||15.97 ||16.37 ||15.98 |
Syndicate Kisan Credit Card Scheme (SKCC):
The Bank has issued 1.40 lakh Syndicate Kisan Credit Cards during theyear 2013-14. The cumulative number of Syndicate Kisan Credit Cards issued so far up toMarch 2014, excluding the renewals, is 16.25 lakh with a Total credit limitof Rs 11014.11 crore. As at March 2014, Rupay Kisan Cards have been issuedin case of 116903 operative SKCC A/cs.
Under Syndicate Kisan Samrudhi Credit Card Scheme, the Bank has issued 158 cards with acredit limit of Rs 1.97 crore during the year up to March 2014, whichprovides hassle free investment credit in addition to need based short-term credit.
Government Sponsored Schemes:
Outstanding advances to SC/ST beneficiaries under Govt. Sponsored Schemes and DRIScheme as on March 2014
| || || || || |
(Amount Rs in crore)
|Scheme ||Balance outstanding ||Of which SC/ST ||% to SC/ST against Total |
| || || || || ||(For Accounts) |
| ||A/C ||Amt. ||A/C ||Amt. || |
|PMRY ||6446 ||49.66 ||1059 ||7.08 ||16.43 |
|PMEGP ||1941 ||63.95 ||998 ||8.80 ||51.42 |
|SGSY ||8335 ||60.47 ||1820 ||10.13 ||21.84 |
|SJSRY ||6993 ||49.37 ||1203 ||6.06 ||17.20 |
|SRMS ||278 ||1.38 ||124 ||0.45 ||44.60 |
|DRI ||3671 ||8.96 ||1579 ||3.92 ||43.02 |
Advances to Minorities:
The advances to Minorities rose from Rs 7601 crore as at March 2013 to Rs 8308 croreas at March 2014, registering a growth of 9% during the year 2013-14. As perGOI directives, Priority Sector Loans extended to Jain Community were included forcomputing Minority Sector Advance.The information pertaining to credit flow to Minoritycommunities and status on implementation of
Prime Ministers 15 point programme for Minorities and Sachar Committeerecommendations are placed in the Banks website. Special interest scheme wasintroduced by the Bank during 2010 for the benefit of Minority Community under PrioritySector lending, and the same is continued during 2013-14.
Various components of Advances to Weaker Sections as at 31.03.2014:
(Amount Rs in crores)
|Sectors ||Outstanding |
|Small & Marginal Farmers, Agri. ||6681.61 |
|Labourers,Tenant Farmers and share croppers || |
|Artisans, Village and Cottage Industries ||45.29 |
|SC/ST Beneficiaries ||3076.49 |
|DRI Loans ||8.96 |
|SHG/JLG Advances ||1809.59 |
|Advances to Distressed Poor to repay debt to informal sector ||57.28 |
|Advances to Individual Women beneficiaries up to Rs 50,000 ||1078.86 |
|TOTAL ||12758.08 |
New Initiatives and other developments during the year:
Special Campaign on Agricultural Credit was held from 01.12.2013 to 28.02.2014 andRegions which have secured top 3 places were recognized with Trophies and Certificates.
Credit Camps were organized in all the Regions for canvassing proposals underAgricultural Advances.
The Bank has achieved all the mandatory targets under Priority Sector Credit, TotalAgriculture, Direct Agriculture, Weaker Section Advances, Credit Women Beneficiaries andcredit to Minorities for the last 3 financial years including March 2014.
The Bank has extended crop production credit of
Rs 5798.13 crore benefitting 7.14 lakh farmers during 2012-13under interest subvention scheme of the Govt. of India. The bank has extended the interestsubvention benefit @2% to the tune of Rs 54.27 crore and Rs 9.75 croreas additional incentive subvention @ 3% for timely payment during 2012-13 and making theeligible farmer derive credit at the effective rate of 4%. The Interest Subvention schemeof Govt of India is continued during 2013-14 also. 35873 new Self Help Groups (SHGs)were credit linked during 2013-14 with a credit support of Rs 1267.45 crore.
The outstanding advances to SHGs as at March 2014 was 90875 accounts with anoutstanding balance of Rs 1799.58 crore. In addition, 543 Joint Liability Groups(JLGs) were credit linked with a credit support of Rs 3.34 crore. The outstandingadvances to JLG as at March 2014 was 1618 accounts with an outstanding balance of Rs 10.01crore.
The Bank is participating in Jana Sree Bima Yojana of LIC of India to extendinsurance cover to all the women members of SHGs credit linked to Bank wherein the premiumis subsidized by GOI. Moreover, the scheme has an add-on benefit under Shiksha SahayogYojana wherein two children of the insured member of SHG are provided with scholarship atno additional cost.