State Bank of Bikaner and Jaipur

BSE: 501061 | NSE: SBBJ | ISIN: INE648A01026 
Market Cap: [Rs.Cr.] 4,342.45 | Face Value: [Rs.] 10
Industry: Banks - Public Sector

Management Discussions



Global economic prospects have improved but the road to recovery in the advancedeconomies will remain bumpy. In advanced economies, activity is expected to graduallyaccelerate, starting in the second half of 2013. Over the past six months, advancedeconomy policymakers have successfully defused two of the biggest short-term threats tothe global recovery, the threat of a euro area breakup and a sharp fiscal contraction inthe United States caused by a plunge off the "fiscal cliff." In response,financial markets have rallied on a broad front. Growth in several emerging and developingeconomies (EDEs) rebounded from the moderation. Among BRICS countries growth acceleratedin Brazil and South Africa, while it persisted below trend in China, Russia and India.Inflation has remained benign in the Advanced Economies in the absence of demand pressuresand inflation expressions remain well anchored. The inflation in EDEs present a mixedpicture. While inflation has picked up in Brazil, Russia and Turkey, it has eased inChina, Korea, Thailand and Chile.


Central Statistical Organisation's (CSOs) advance estimate of 5.0 per cent GDP growthduring financial year 2012-13 is lower than the Reserve Bank's base line projections of5.5 per cent set out in the Third Quarter Review of January, 2013 reflecting slower thanexpected growth in both industry and services. During 2013-14 economic activity isexpected to show modest improvement over last year. The out look for industrial activityremains subdued, with the pipeline of new investment drying up and existing projectsstalled by bottlenecks and implementation gaps. The RBI has projected baseline GDP growthfor financial year 2013-14 at 5.7 per cent.

By March, 2013, WPI inflation at 6.0 per cent turned out to be lower than the ReserveBanks of India's indicative projection of 6.8 per cent mainly due to sharp decline innon-food manufactured product inflation in the second half of the year. Keeping in viewthe domestic demand - supply balance, the outlook for global commodity prices and theforecasting a normal monsoon, RBI expects WPI inflation to be in range band around 5.5 percent during 2013-14.


Rajasthan's economy is primarily agricultural and pastoral. The problem of famine anddrought is deeply related with the economy of Rajasthan. According to the population of2001 about 80% of the population lives in rural areas therefore agriculturist tribes arethe biggest sufferers in time of famine and drought. Rajasthan is the leading investmentdestination in India after Maharashtra and Gujarat because of peaceful environment, betterlaw and order situation, excellent infrastructure, investment friendly climate and veryless population density. Areas facing NCR such as Bhiwadi are now buzzing with automobileand manufacturing companies. Rajasthan is pre-eminent in quarrying and mining in India.The state is the second largest source of cement. It has rich salt deposits at Sambhar,copper mines at Khetri and zinc mines at Dariba and Zawar.

Endowed with natural beauty and a great history, tourism is flourishing in Rajasthan.The palaces of Jaipur, lakes of Udaipur and desert forts of Jodhpur, Bikaner &Jaisalmer are among the most preferred destination of many tourists, Indian and foreign. Aspin-off of tourism has been the growth of the handicrafts industry. Tourism providesa big boost to the economy of Rajasthan. Recently HPCL signs a MoU with RajasthanGovernment for 9MMTPA Refinery-cum-Petrochemical Complex at Barmer in Rajsthan.


The year 2012-13 witnessed a sharp decline in the advances growth of scheduledcommercial banks (SCBs) while deposit growth also subdued. The year-on-year aggregatedeposits and advances growth of SCBs stood at 13.2% and 13.9% respectively as at end-March2013, compared to 17.4% and 19.3% respectively during the previous year.

Growth slowdown, persistent inflation and the twin deficit risks came to the foreduring 2012-13 and enervated the Indian economy endangering the reversal of its declininggrowth path.

Amidst trade-offs, monetary policy factored in increased growth risks and shifted itsstance to calibrated easing to address the growth slow down as headline inflationgradually moderated. The Government also launched concerted policy action and reformsduring H2 of 2012-13. These reforms, with fuller implementation, are expected to arrestthe downward spiral and kick in the modest recovery in 2013-14. Some of the importantpolicy developments:

• Interest subvention of 1 per cent on housing loans extended to loans upto Rs.15lakh, where cost of the house does not exceed to Rs. 25 lakh.

• Small individual investors will get no-frills demat accounts for trading instocks, mutual funds and other securities without any annual maintenance charges forholdings up to Rs.50000. Also, the charges would be capped at a maximum of Rs.100 a yearif the portfolio value is up to Rs.2 lakh.

• RBI released the final guidelines for Indian Banks on BASEL-III. Banks will haveto comply with these norms between April, 2013 and March, 2018.

• RBI has notified Banks to obliterate the foreclosure charges (prepaymentcharges) on floating rate home loans. This will lead to reduction in the discriminationbetween existing and new borrower; and competition among banks will result in finerpricing of floating rate home loan.

• The central role in financial inclusion has to be played by banks. They need tofocus on transactions in accounts opened under financial inclusion. Only banks can offerthe entire suite of products required to usher in meaningful financial inclusion.

• RBI has allowed Banks to establish outlet for BCs in rural centres to boost theGovernment's financial inclusion programme.

• RBI has advised all Banks to allow their customers to use the NationalElectronic Funds Transfer (NEFT) facility for repaying loans.

• The borrowing limit of Scheduled Commercial Banks (SCBs) under the MarginalStanding Facility (MSF) raised from 1% to 2% of their Net Demand and Time Liabilities.

• Interest Subvention scheme for short-term crop loan to be continued.

• Companies investing Rs.100 crore or more in plant and machinery during theperiod 01.04.2013 to 31.03.2015 will be entitled to deduct an investment allowance of 15%of the investment.

• Guidelines regarding financial restructuring of DISCOMS have been announced.State Government urged to prepare the financial restructuring plan, quickly sign MoU andtake advantage of the scheme.

• Additional deduction of interest up to Rs.1.00 lac for a person taking firsthome loan up to Rs.25.00 lac during period 01.04.2013 to 31.03.2014.

• All Branches of Public Sector Banks to have ATM by 31.03.2014.

• Proposal to set up India's first women's Bank as a Public Sector Bank.


The Union Budget 2013-14 has projected the GDP Growth for 2013-14 at 8% whichexpected to boost the demand for credit and other services from the banking system. TheCabinet Committee on Investment (CCI) has been set up to over come the slow progress ofbig projects. The fiscal deficit for the year 2012-13 contained at 5.2% and for theyear 2013-14 estimated at 4.8%.

The foremost challenges before the Bank continues to be improving its market share bothin the State of Rajasthan and on an all-India basis with emphasis on maintaining assetquality, utilizing advanced technology for increase in business and profitability,improving risk management systems, increasing net interest margin, increasing non-fundbased business sizably and achieving further improvement in the customer service byadopting best Corporate Governance practices.



The overall business of the Bank (deposits plus gross advances) reached a level ofRs.130590 crore as at end-March 2013 as against Rs.111558 core as at end-March 2012,recording a growth of Rs.19032 crore (17.06%). The total deposits increased by Rs.10544crore (17.12%) to reach a level of Rs.72116 crore while advances increased by Rs.8489crore (16.98%) to reach a level of Rs. 58474 crore by end-March 2013. The cost of depositsof the Bank increased from 6.85% in 2011-12 to 7.13% in 2012-13, while yield on advancesimproved from 11.51% to 11.64%.


During the current financial year, growth has slowed and inflation remained above theReserve Bank’s comfort level. Monetary Policy has responded to this evolvinggrowth-inflation dynamics through calibrated easing. The Reserve Bank front-loaded areduction in its repo rate by 50 bps in April 2012. Even as elevated inflation and thetwin deficits have severely restricted the space for further easing of the policy ratesince April 2012, subsequent measures were directed towards ensuring adequate liquidity tofacilitate a turnaround in credit deployment to productive sectors for supporting growth.As part of liquidity management measures, the CRR was reduced in two stages by 50 bps in apre-emptive manner to ease monetary and liquidity conditions. Also, the statutoryliquidity ratio (SLR) of scheduled commercial banks (SCBs) was reduced to improve thecredit conditions. Further more, apart from supplying liquidity through daily liquidityadjustment facility (LAF), the Reserve Bank made active use of the auctions under outrightopen market operations (OMOs) and injected primary liquidity of about Rs.1.3 trillion. Thejudicious use of the two sets of instruments, i.e., keeping the policy rate unchanged fromApril to December and proactive liquidity easing measures conferred dual benefits thatwere evident as inflation gradually declined from its peak and credit off-take showedsigns of improvements during most of November and December 2012. Inflation, however,continues to remain above the Reserve Bank’s comfort level. In the 'Third QuarterReview of Monetary Policy 2012-13', Repo rate was slashed by 25 basis points at 7.75%against 8.00% earlier, and Cash Reserve Ratio (CRR) of scheduled banks was also reduced by25 basis points from 4.25% to 4.0% of their net demand and time liabilities (NDTL).Continuing with this RBI again cut the Repo Rate by 25 basis point in March, 2013,bringing the Repo rate down to 7.50%.

The yield on the 10 year Benchmark security eased to 8.12% from 8.74% during the periodApril to July, however August saw the yield firming up again as a result of cut in SLRrequirements. From September onwards on the back of the reform measures announced by theGovernment and subsequent cut in the repo and frequent OMOs announced by the RBI, the 10year benchmark yield eased further and touched a low of 7.78%. This gave us theopportunity to book profit in GSec.

Equity market during the first quarter of the year was in red mainly on the issues likeGAAR & S&P’s negative outlook on India and increasing worry on Eurozone.However the market remained largely in the green territory during the second and thirdquarter as a result of various reform measures taken by the government and continued FIIinflows. During the last quarter the market plunged again as GDP growth failed to pickupand recorded a dismal 4.5% growth in the third quarter. The negative sentiment accentuatedfurther as the Union Budget for FY 2014 presented in the Parliament failed to support thesentiment, though Finance minister stuck to the fiscal deficit targets and providedmeasures on social infrastructures. The Budget fell short of any big ticket, policyoriented thrust to boost growth. The sentiment remained bearish on account of Eurozoneconcern. During the year Bank invested in IPOs/OFSs of companies with proven record/soundfundamentals and also undertook trading in the secondary market to maximize returns.

The Bank’s net investment increased from Rs.16669 crore as on 31stMarch 2012 to Rs.20146 crore as on 31st March 2013. The yield on investments,excluding profits, improved from 7.48% in 2011-12 to 7.64% in 2012-13. The yield oninvestment including profit improved from 7.67% to 8.04% during the same period.



The Bank's total interest income increased from Rs.6291.36 crore during 2011-12 toRs.7498.19 crore during 2012-13, recording a growth of 19.18%. Interest expenditureincreased by 21.19% to Rs.4932.38 crore, as against Rs.4069.96 crore in the previous year.The net interest income recorded a growth of 15.50% to Rs.2565.81 crore, as againstRs.2221.40 crore in 2011-12. The net interest margin decreased from 3.70% for the yearended March 2012 to 3.62% for the year ended March 2013.


The non-interest income of the Bank has increased by 21.25% from Rs.598.97 crore in2011-12 to Rs.726.28 crore during 2012-13. The increase during the year as compared to thelast year is mainly on account of increase in profit on Forex turnover by Rs.51.62 crore,profit on sale of investment by Rs.46.96 crore and recovery in Written-off accounts byRs.22.21 crore.


The operating expenses recorded a growth of 18.67% from Rs.1330.76 crore in 2011-12 toRs.1579.22 crore during 2012-13. Of this, employee costs increased by 20.46% to Rs.987.53crore, while total other operating expenditure increased by 15.80% to Rs. 591.69 crore.


During 2012-13, the operating profit increased to Rs.1712.87 crore, recording a growthof 14.99% as against Rs.1489.61 crore in the previous year. The net profit recorded agrowth of 11.99% from Rs.652.03 crore in 2011-12 to Rs.730.24 crore in 2012-13.


During the year 2012-13, the Bank declared an Interim Dividend of 161% i.e. Rs.16.10/-per equity share (face value of share Rs.10/- per share) which is 11.03% higher thandividend of 145% i.e. Rs.14.50/- per share declared in the previous year. Record date forascertainment of entitlement of shareholders for Interim Dividend was 29thMarch, 2013. Interim dividend may be treated as final dividend.


The Return on Assets of the Bank stood at 0.96% during 2012-13 as against 0.99% in theprevious year. The return on equity decreased to 15.33% as against 15.66% in the previousyear. The earnings per share also increased from Rs.95.05 in 2011-12 to Rs.104.32in 2012-13, while the book value per share improved from Rs.594.98 in 2011-12 to Rs.678.74in 2012-13. As at end-March 2013, the capital adequacy ratio of the Bank stood at 11.81%and 12.16% as per Basel I and II norms respectively, as against 12.81% and 13.76% as perBasel I and II norms respectively, as at end-March 2012. This was well above the RBIbenchmark of 9%. Due to rise in NPAs on account of continued stress faced by theindustrial sector coupled with agriculture NPAs, the Bank's Gross NPA ratio and Net NPAratio increased from 3.30% and 1.92% respectively as at end-March 2012 to 3.62% and 2.27%respectively, as at end-March 2013. The average business per employee increased to Rs.900lakh during 2012-13, as against Rs.827 lakh in the previous year. The net profit peremployee improved to Rs.5.91 lakh during 2012-13, compared to Rs.5.42 lakh during 2011-12.The average business per branch increased to Rs.112.42 crore during 2012-13, as againstRs.104.73 crore in the previous year.


The overall credit demand remained subdued during the FY 2012-13, even though therewere signs of economic recovery. However, the Bank continued to focus on qualitativecredit growth and faster credit delivery. Total advances of the Bank grew by 16.98% during2012-13, as against a growth of 19.77% during 2011-12. The Bank’s Commercial &Institutional (C&I) segment advances (other than food credit) registered a growth ofRs.4705 crore (16.47%), while non-C&I segment comprising personal, small business andagricultural advances increased by Rs.3809 crore (17.76%) during 2012-13. The impetus offinancing remained mainly towards infrastructure development, such as power and road,besides other sectors such as steel, textiles and non-banking finance companies. In viewof the prevailing competitive market scenario, closer interaction and regular meetings bythe Top Management with high value customers were held at major centers in the country.


During 2012-13, personal segment business has crossed Rs.50000 crores mark withRs.41752 crores of deposits and Rs.9131 crores of advances. The retail deposits recordedan escalation of Rs.6094 crores on the base level of Rs.35658 crores which is a YoY growthof 17.09% while retail P segment advances grew by Rs.1142 crores taking the retailadvances portfolio to Rs. 9131 crores.

The Bank has launched one Incentive linked Deposit mobilization Campaign for the entireFY 2012-13, to counter the fierce market competition posed by private players, who areoffering higher interest rates to customers post RBI's guidelines for deregulation ofinterest rate in SB deposits. Apart from this year long campaign, to broaden the customerbase two more Campaigns to open SB accounts were also launched and in the process, Bankhas crossed the land mark of having more than One crore SB accounts in its books. Duringthe year we have opened a record number of 19.31 lakh new savings deposit accounts asagainst 11.36 lakh accounts during the previous year 2011-12. Year 2012 was alsocelebrated as "Golden Jubilee Year" by the Bank and to commemorate thismemorable event a new 50 week (350 days) term deposit product named 'GOLDEN JUBILEEDEPOSIT PRODUCT' was also launched by offering higher rate of interest to our esteemedpatron customers.

Despite the gloomy economic scenario coupled with RBI’s tightening liquiditynorms, the bank was able to sanction Rs.3309 crores in 1.11 lakh new advances accounts asagainst last year's of Rs.2805 crores under various loan schemes in the personal bankingsegment. This year bank has recorded a robust growth of 60.86% in disbursement of Psegment car loans. During the fiscal 2012-13, with fresh sanctioning of 14531 car loans,the car loan portfolio grew by 43.53% over March 2012. Our unique innovative technologybased initiative,

10 Minute On line sanction of Car Loan rolled out during the last financial yearwas also instrumental in pushing car loans apart from our launching campaigns during thefestive seasons during the year entire fiscal year 2012-13 by extending concessions ininterest rates and processing fee. To keep in pace with the market trends and dynamics, wehave reoriented and modified our existing loan schemes such as Home loan, Car loan, GoldLoan and Education loan schemes by readjusting Interest rates, Processing fee andeligibility norms. At the behest of Government Of India, for providing institutionalfunding for the students undergoing specialized skill development programs in recognizedinstitutions one education loan scheme "Model Loan Scheme for Vocational Educationand Training" was also launched, The Bank at the behest of MOHRD, Government ofIndia is continuing an Interest Subsidy Scheme for "Economically weaker section(EWS) on Education loan borrowers" and claimed Rs.12.33 crore amount in 8714beneficiaries accounts.


Priority Sector advances continued to remain the major thrust area of the Bank'sbusiness. As at end March 2013, the Bank's priority sector advances increased to a levelof Rs.20807 crore as against Rs.17690 Crore in the previous year. This constituted 41.61%of the Adjusted Net Bank Credit, against the RBI benchmark of 40%. Priority SectorAdvances in Rajasthan stood higher at 65.85% of Rajasthan's ANBC as on 31stMarch, 2013.


Lending to agriculture remains one of the major thrust areas of the Bank. The flow ofcredit to agriculture increased from Rs.6825 crore in 2011-12 to Rs.8376 crore in 2012-13,recording a growth of 126%. The outstanding level of agriculture advances increased by1.73% from Rs.9032 crore as at the end of March, 2012 to Rs.9188 crore as at end of March,2013. Our Bank’s total direct agriculture lending is 89.81% amounting to Rs.8252crore, and has registered a growth of 13.94%. Due to change of priority sector guidelinesa major portion of indirect Agriculture has been classified under MSME and this hasimpacted the overall growth in Agriculture Advance. Agriculture credit constituted 18.38%of the Adjusted Net Bank Credit, which was above the RBI benchmark of 18%. In the state ofRajasthan, the agricultural advances stood even higher at 34.87% of the Adjusted Net BankCredit.

The Bank has issued 111911 Kisan Credit Cards (KCCs) with sanctioned amount ofRs.2018.99 crore during the financial year, taking the total number of KCCs to 515520 asat end-March 2013. The bank issued 53615 new KCC with a growth of Rs.951.68 in productioncredit, which constituted 11.61% growth of New KCC and amount wise growth of 19.58% aftersale of Rs.400 crore crop loans through IBPC. The Bank has added 189 new farmers per ruraland semi-urban branch during the year.

In order to bring the farmers out of the clutches of the money lenders, the Bankintroduced a Debt Swap Scheme in the year 2008. During 2012-13, assistance disbursed underthe Debt Swap Scheme stood at Rs.56.71 crore, benefiting 12118 farmers. The outstandingassistance under the scheme increased from Rs.291.19 crore as at end-March 2012 toRs.320.44 crore as at end-March 2013. The number of beneficiaries under the Scheme alsoincreased from 70377 in the previous year to 73583 farmers in March 2013, recording agrowth of 4.60%. By providing financial assistance under this scheme Bank has made thevillagers of 42 villages completely free from the clutches of private money lenders.


Our Bank has embarked upon its journey to implement the FI initiatives in the unbankedservice area villages through ICT enabled banking correspondent outlets. 794 businessCorrespondents have been engaged to cover 823 villages and brick and mortar branches havebeen opened in 6 villages to cover 829 villages with population of 2000 and aboveallocated to our Bank for providing banking services by 31.03.2012. In these villages229652 accounts have been enrolled.

Now the concept of coverage under FIP has changed and as per new concept, a BC has tocover all the villages falling in a Gram Panchayat. We have 1878 Gram Panchayats in ourBank's service area in the state of Rajasthan. Out of these, in 369 Gram Panchayats ourBrick and mortar branches are functioning and in 792 Gram Panchayats we have alreadyengaged BCs/BCAs. The remaining 717 Gram Panchayats, will be covered by engaging CSCs asBCAs/ Individual BCs / BCAs of any other Corporate BC who can work on KIOSK model,developed by TCS for SBI Group.

Financial Literacy: Bank is actively involved in Govt. of India sponsoredSwabhimaan campaign enlightening the rural populace about FI initiatives. Pamphlets,brochures detailing the advantages of Bank accounts are distributed in FI villages toeducate the rural public about the Bank's FI initiatives. Our Bank has already set upFinancial Literacy & Credit Counseling Centres (FLCCs) in all the nine Lead Districtsto impart literacy among rural population. These FLCCs have conducted 304 literacy campsand counselled 38759 persons during the year 2012-13. Apart from this, the Bank has alsoset up 8 R-SETIs to train the potential Small Entrepreneurs to start their own ventures /business / entrepreneur for self employment in rural areas. The 8 R-SETIs have so fartrained 27616 rural unemployed youth for various trades i.e. electric work, tailoringcomputer repair etc. Out of 27616 trained persons, 14762 persons belong to BPL families

Aadhaar Project of UIDAI: UIDAI has been setup by the Government of India with amandate to issue a unique identification number to all the residents in the country basedon demographic and biometric data of the individual. UIDAI has entered into Partnershipwith the Govt. and other agencies including Banks leveraging their existinginfrastructure. These agencies are called the Registrars of UIDAI. Our Bank has alsosigned an MoU with UIDAI on 22nd January 2011 and has become a registrar inthis project. Our bank has undertaken Aadhaar enrollments through an enrollment agency inthe state of Rajasthan. More than 24 lac Aadhaar enrollments have been done till31.03.2013 and 17.40 lac Aadhaar numbers have been generated so far and thus SBBJ is among all the Associate Banks. Our Bank has successfully implemented Aadhaar basedpayment system (APBS/ NACH) through National Payment Corporation of India (NPCI) gateway.Seeding of Aadhaar Number in CBS account is under progress.


Micro, Small and Medium Enterprises (MSME), the main growth driver of the IndianEconomy, accounts for 35% of manufacturing sector output, 40% of India's exports andprovides employment to more than 6 crore persons in 1.5 crore enterprises. Accordingly,the Bank has also been according high priority to this area. The Bank has assisted 4473new MSME units during the year 2012-13. In order to boost MSME advances, we have revisedour existing loan schemes viz. financing against Ware House receipts, Transport OperatorLoan Scheme, Marble Plus Loan Scheme, Construction Equipment Loan Scheme, SME Car LoanScheme. We have also entered into MOUs with JCB India Ltd., Tata Motors Ltd & AshokLeyland Ltd for booking fresh advances. We have reduced spread on our base rate for MSMEadvances twice during the year and our interest rates are now very competitive.

As at end-March 2013, the outstanding credit to Micro and Small enterprises hasincreased by 25.46% to reach a level of Rs.8127.36 crore, as against Rs.6477.96 crore asat end- March-2013.

The Bank has continued its thrust to provide collateral free loans to MSE units underthe credit guarantee scheme of CGTMSE. During the year, Bank provided new collateral freeloans under Credit Guarantee Scheme of CGTMSE to MSE units amounting to Rs.78.85 crore.


As at end-March, 2013, 2.05 lac accounts of financial assistance were provided to womenunder different schemes of the Bank with a total outstanding of Rs.2732.85 crore exists.



As at end-March 2013, assistance to minority communities stood at Rs.1043.26 crorespread over 78776 accounts. Financing to weaker sections stood at Rs.8237.10 crorebenefiting 8.32 lakh persons as at end-March 2013. The ratio of assistance to weakersections as a percentage of Adjusted Net Bank Credit is 16.47% as at end-March 2013. Thiswas above the benchmark of 10% prescribed by RBI.

The outstanding assistance towards Scheduled Castes (SCs) / Scheduled Tribes (STs)stood at Rs.1966.78 crore in 202556 accounts under priority sector as on 31stMarch 2013


The Bank conducts Government Business on behalf of State/Central Government departmentsthrough 490 authorized branches. Income Tax, Central Excise, Service Tax, Value added taxetc. are collected through physical challans and also through the electronic mode. TheBank has established a Centralized Pension Processing Centre (CPPC) which calculates aswell as credits pension to the accounts of pensioners across all the branches. We alsohave an Online Treasury Branch for online payment of Salary of Rajasthan Govt. employeeson behalf of the State Government and presently our Online Treasury Branch is processingabout 9 lacs State Govt. transactions received through 18000 digitally signed files in amonth. During 2012-13 commission income from Government business was Rs.114 crore.


The Bank provides Foreign Exchange related services to exporters/ importers, otherresident and non-resident customers through a network of 66 Authorized Category"B" and 184 category ‘C’ branches and 4 Trade Finance CentralProcessing Centres (TFCPC). Bank's forex dealing room at Mumbai and all the authorizedcategory ‘B’ branches are equipped with latest technology for real-timecommunication and are connected through SWIFT network with more than 750 offices offoreign banks throughout the world. The Bank maintains 20 NOSTRO accounts in all majorcurrencies and non-account correspondent banking relationship with all major bankinggroups in the world. To facilitate NRI customers for inward remittances, there is onlineremittance facility and tie-ups with 5 Gulf based Exchange Houses. Our 231 branches areauthorised for payment of Western Union Money Transfer. The Bank also undertakesproprietary Forex trading to increase profit by taking advantage of market movements. OurMerchant forex turnover stood at Rs.26717 crore at the end of March 2013, as againstRs.19652 crore of last financial year, recording a growth of Rs.7065 crore (35.95%) duringthe year. Our NRI deposits stood at Rs.1249 crore at the end of March 2013 against thebase of Rs.950 crore in March 2012, registering a growth of Rs.299 crore (31.47%). Ourexport credit stood at Rs.2334 crore at the end of March 2013 against Rs.1931 crore ofMarch 2012, recording a growth of Rs.403 crore during the financial year. In percentageterms, the growth was 20.87%.

The Bank chairs the local chapter of Foreign Exchange Dealers' Association of India(FEDAI). The Bank is an active member of FEDAI, International Chamber of Commerce (ICC)and Clearing Corporation of India Limited (CCIL).


Rehabilitation/ restructuring of potentially viable industrial unit remains animportant thrust area of the bank. For this purpose, the bank has its own IndustrialRehabilitation Policy containing detailed guidelines for undertaking rehabilitation/revival package and the same is updated from time to time. Whenever units are found nonviable or not responding to the rehabilitation/ restructuring package, focus is shifted torecovery of Bank's dues through legal recourse such as action under SARFAESI/ compromisesettlement/ assignment of debt/ through courts/ Debt Recovery Tribunals (DRT).

As at end - March 2013, the Bank had 27 large sick/ weak units on its books withaggregate outstanding of Rs.364.13 crore. There are 31 Corporate Debt Restructuring caseswith aggregate exposure of Rs.1193.20 crore and 25 BIFR cases with exposure of Rs.413.78crore. The Bank has been acting as BIFR's Operating Agency in 6 cases. During the yearunder review, 15 accounts with aggregate exposure of Rs.808.52 crore have beenrestructured under CDR mechanism as warranted basically by the tight economic scenario.Sustained efforts are undertaken by the Bank in restructuring the accounts and postsanction close monitoring and follow up have resulted in retaining most of therestructured assets as Standard Assets.


The Bank continues with its multipronged strategy of controlling Non-Performing Assets(NPAs) through intensive monitoring of large value accounts, close follow-up with DRT/BIFR, restructuring of viable accounts and effectively utilizing the remedies availableunder the SARFAESI and RODA Acts. Due emphasis has been given to follow up with the courtsand filing of Execution Petitions. During the year, 'Recovery Camps', Bank Adalats and LokAdalats were organized for NPA recovery, the results of which were quite encouragi

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Key Information

Key Executives:

Arundhati Bhattacharya , Chairman

B Sriram , Managing Director

Malvika Sinha , Nominee (RBI)

Rajesh T Manubarwala , Director

Company Head Office / Quarters:

Tilak Marg,
Phone : Rajasthan-91-141-5101539 / Rajasthan-
Fax : Rajasthan-91-141-5101176 / Rajasthan-
E-mail :
Web :


F-65 1st Floor,Okhla Industrial Are,Phase-I,New Delhi-110020

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