bank of india share price Directors report


The Board of Directors have pleasure in presenting the Banks Annual Report along with the audited statement of accounts and the cash flow statement for the year ended 31st March 2023.

PERFORMANCE:

Domestic Business:

? Overall Domestic Business of the Bank increased by 5.70% and reached at Rs. 998,700 crore as on 31.03.2023 from Rs. 944,824 crore as on 31.03.2022.

? CASA deposits increased by 2.72% on YOY and stood at Rs. 252,149 crore. Share of low cost deposits (CASA), in domestic deposits stood at 44.73% as on 31.03.2023.

? TOTAL deposits increased by 2.95% and reached at Rs. 567.063 crore as on 31.03.2023 from Rs. 550,833 crore as on 31.03.2022.

? Gross Domestic Advances registered growth of 9.56% YoY, reached at Rs. 431,637 crore as on 31.03.2023 from Rs. 393,991 crore as on 31.03.2022.

? Share of RAM Advances to TOTAL advances is 55.11% (i.e. Rs. 237,884 crore) as on 31.03.2023 as compared to 53.77% (i.e. Rs. 211,843 crore) as on 31.03.2022.

? Priority Sector lending constituted 43.28% of Adjusted Net Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 19.00%.

? Retail Credit grew by 17.4% from Rs 80,675 crore as on 31.03.2022 to Rs 94,716 crore as on 31.03.2023. The share of Retail Credit to TOTAL Domestic Credit was 21.94% as on 31.03.2023.

? MSME Credit grew by 9.31% from Rs 64,750 crore as on 31.03.2022 to Rs 70,777 crore as on 31.03.2023. The share of MSME Credit to TOTAL Domestic Credit was 16.40% as on 31.03.2023.

Overseas Business:

? Overseas business has increased by 33.30 % and reached at Rs. 186,738 crore as on 31.03.2023 as compared to Rs. 140,086 crore as on 31.03.2022.

? TOTAL Foreign Deposit registered a growth of 33.04 %, reached at Rs. 1,02,523 crore as on 31.03.2023 from Rs. 77.063 crore as on 31.03.2022.

? The Overseas CD Ratio stood at 82.14% as on 31.03.2023.

Global Business:

? Gross Business of the Bank registered a growth of 9.27 %, reached at Rs. 11,85,438 crore as on 31.03.2023 from Rs. 10,84,910 crore as on 31.03.2022.

? TOTAL deposits increased by 6.64% and reached to Rs.669,586 crore as on 31.03.2023 from Rs. 627,896 crore as on 31.03.2022.

?Gross Advances increased by 12.87% and reached at Rs. 515,852 crore as on 31.03.2023.

? The Global CD Ratio stood at 77.04% as on 31.03.2023.

Financial Parameters:

? Operating Profit increased by 34.09% and reached at Rs. 13,393 crore as on 31.03.2023 against Rs.9,988 crore as on 31.03.2022.

?Non-Interest Income decreased to Rs.7,100 cr in FY23 from Rs. 7,879 crore as on 31.03.2022.

? The Bank registered Net profit of Rs.4,023 cr. In FY23 as against Net Profit of Rs. 3,405 crore for FY 22.

? Capital Adequacy Ratio stood at 16.28% as on 31.03.2023 as against 16.51% as on 31.03.2022.

?Net Worth increased by 11.35% to Rs. 41,127 crore from Rs. 36,933 crore as on 31.03.2022.

? Book value per share is Rs. 100.20.

?Gross NPA amount reduced by 17.36% (i.e. Rs. 7,920 crore) reached at Rs 37,686 crore as on 31.03.2023 from 45,605 crore as on 31.03.2022.

? Gross NPA percentage reduced to 7.31% as on 31.03.2023 from 9.98% as on 31.03.2022.

?Net NPA amount reduced by 18.25% (i.e. Rs. 1,798 crore) reached at Rs. 8,054 crore as on 31.03.2023 from Rs. 9,852 crore as on 31.03.2022.

?Net NPA percentage reduced to 1.66% as on 31.03.2023 from 2.34% as on 31.03.2022.

The Financial performance of the Bank for the year 2022-23 is summarized below:

(Amount in crore)

Particulars

2021-22

2022-23

Growth (%)

Net Interest Income

14062

20,275

44.18

Non-Interest Income

7879

7100

-9.89

Operating Expenses

11952

13982

16.98

Operating Profit

9988

13393

34.08

Provisions / Contingencies

6584

9370

42.32

Net Profit/ Loss

3405

4023

18.16

Earnings per share (Rs.)

8.84

9.80

Book Value per share (Rs.)

89.99

100.20

Return on Equity (%)

10.55

10.31

Return on Average Assets (%)

0.43

0.49

 

Key Financial Ratios are presented below:

(Percentage) (%)

Particulars

2021-22

2022-23

Yield on Advances

6.76

7.37

Yield on Investments

6.32

6.51

Yield on Funds

5.21

6.15

Cost of Deposits

3.69

3.67

Cost of Funds

3.29

3.53

Net Interest Margin

2.36

3.01

Non Interest Income to Operating Expenses

65.92

50.78

Other Income to Average Working Fund

1.0

0.86

Operating Expenses to Average Working Fund

1.64

1.80

Staff Expenses to Average Working Fund

0.97

1.08

Other Operating Expenses to Average Working Fund

0.67

0.72

Asset Utilisation Ratio

1.37

1.73

Non Interest Income to TOTAL Income

17.14

12.97

Non Interest Income to Net Income

35.91

25.94

Cost to Income Ratio

54.48

51.08

 

CAPITAL:

During the financial year 2022-23, Bank has raised Rs.1,500 Crore by issue of Basel III compliant Additional Tier I bonds on 02.12.2022.

CAPITAL ADEQUACY:

? As per Basel III framework, the Banks Capital Adequacy Ratio was 16.28% which is higher than the regulatory requirement of 11.5 %.

? Details of Capital Adequacy (BASEL III) are :

(Rs. in crore)

Particulars

BASEL-III

31.03.2022

31.03.2023

CET1 CRAR

42,695

13.49%

48,232

13.60%

AT1 CRAR

1,352

0.44%

2852

0.80%

Tier I Capital

44,047

13.92%

51,084

14.41%

Tier II Capital

8,206

2.59%

6,643

1.87%

TOTAL Capital

52,253

16.51%

57,727

16.28%

Risk Weighted Assets

3,16,395

3,54,534

 

BUSINESS INITIATIVES:

? "Star Suvidha Express Personal Loan scheme (SSEPL)" launched exclusively for salaried class and pensioners drawing pension through our Bank.

? Bank has launched "Supply Chain Finance solution customer portal" to increase business through Channel Financing.

?The Co-Lending solutions is under customization with Cred Avenue whereas Knight Fintech is under integration & customization for Pool & Co-Lending solutions.

? Integration of TReDS platform has been implemented with our Supply Chain finance.

? Forex business transactions are centralised at GIFT City, Gandhinagar for faster processing and better compliance.

? Bank is under process of on boarding "GST Sahay App for invoice financing" and "GEM Sahay App Order Based financing".

?Bank has launched "Star CPSU Scheme" for catering to the requirements of CPSUs & Central Government

? Bank has completed "Technical Integration for leads generation" sourced by - housing.com, cardekho.com, 4B Network and CIBIL triggers.

?Bank has formulated a Comprehensive Policy on "Syndicated Loans, External Commercial Borrowings and Foreign Currency Loans" with an objective to regulate and achieve uniformity in syndication lending at all foreign centres.

? Bank has taken various staff welfare initiatives to improve cordial working atmosphere under ESG (Environmental Social Governance) progarmme launched by Human Resources.

? Bank has started Digital processing of PMMY MUDRA Loans product in MSME segment; Personal, Vehicle and Pensioner loan in Retail Segment; Gold Loan and KCC in Agriculture segment through e-platform.

? Special schemes to lend for augmentation of Ethanol Production Capacity launched under Corporate Credit.

? Schemes like Star Kisan Ghar, Star Bio Energy Scheme, Star Kisan Sahayata Loan has been launched in Agriculture segment.

? Bank has launched BOI BIZ Pay app.

? "MissCallPay" is digital payment offline solution that provides all the functionality of UPI based mobile payments over a feature phone using Missed Call. It does not have any dependency on internet connection. Hence it is suitable for rural and urban under-served population of India.

? Digi Locker has been launched. It is an online service provided by Ministry of Electronics and IT (MeitY), Government of India, under its Digital India initiative.

? Cheque Deposit Kiosks has been deployed for providing facility to the customers to deposit cheques in the selfoperated Kiosks without intervention of bank staff.

? ICCW (Interoperable Cardless Cash Withdrawal), To Facilitate banks customers who are live on UPI, to withdraw cash from any participating banks ATMs without using their card.

? Regional Language implementation at ATM.

? Bank has inaugurated two DBUs in East Singhbhum and Khurda to deliver the Digital Banking products & services.

? E-PLATFORM solution is being implemented for Straight Through Origination and process up all Banking products.

? Bank has enabled branches for opening of RBI Floating Rate Saving Bond, 2020 (Taxable).

? Bank has successfully completed phased implementation of Electronic Cash Ledger (ECL) in Customs.

? Robust Recovery mechanism through initiatives like "Intensive Recovery Day", "Branch Adalat" monthly mega E-auction and involving in-house staff such as "Sanjeevani", "Saksham-2" put in place.

? Non-discriminatory and Non-discretionary OTS Schemes, namely "Star Sanjeevani" and "BOI OTS 2021" were made more customer friendly with greater reach for quick resolution of NPAs.

? Document Management System (DMS) has been implemented for digital retrieval of documents and also digitally storing, tracking, managing and accessing data in a more flexible and hassle freeway.

? Security Solutions- Bank has procured and implemented security solutions for strengthening ecosystem of the bank as per guidelines on "Cyber Security Framework in Banks".

? "Tech-driven Credit Monitoring System" for tracking of "Early Warning Signals" effectively used for SMA and SASCL management.

? "Enterprise wide Fraud Risk Management" framework for real-time fraud monitoring is being effectively used for fraud monitoring and management

? Star Hunt scheme- Interested Officers have an opportunity to work in their chosen vertical and their selection is based on written examination and interview. After selection, such officers are trained in the vertical they are selected for and are posted in identified fields.

? Additional National Banking Group and Zonal Offices created to give good service to customers and more business Growth.

AWARDS:

? Bank of India has been adjudged as the "Second Best in Category-I Public Sector Banks for Excellence in Financial Reporting" by ICAI for the year ended 31.03.2022

? Bank of India has been awarded with "Best Innovative Bank- Winner " and "Best Bank For Promoting Social Scheme- -Runner Up" in "MSME Banking Excellence Award-2022" by CIMSME-New Delhi.

? Bank of India has been awarded "Dr. Ambedkar Business Excellence Award" for lending to SC Entrepreneurs awarded by IFCI Venture Capital Ltd.

? Bank has been recognized as "3rd best performing bank in Agriculture Infrastructure Fund Scheme" under Atmanirbhar Scheme, a flagship programme of GOI.

? Bank of India has secured "2nd position among all banks( Public and Private) under NPS Diwas Recognition Programme" conferred by PFRDA.

? Bank of India has secured 3rd rank under Digidhan Mission setup by Meity (Ministry of Electronics and Information Technology) for promotion of Digital Payments.

? Bank of India has awarded with "Best Fintech collaboration (Runner-up)" and "Best IT risk and management (Runner- up)" at IBAs 18th Annual Banking Technology Conference.

? Bank has been awarded with "NUMERO UNO EXEMPLARY AWARD OF PAR EXCELLENCE" from PFRDA for best performance in PFRDA APY CAMPAIGN in SHINE & SUCCEED 2022.

? Bank has won "AWARD OF EXCELLENCE" from PFRDA for best performance in PFRDA APY CAMPAIGN MAKERS OF EXCELLENCE 5.0.

? Bank of India has been certified with "ISO 27001:2013 for Information Security Management System" and "ISO 22301:2019 for Business continuity Management System".

? Bank was awarded with "Runners-Up Award" in Finacle Innovation Awards 2021 from M/s Infosys in Large Bank Segment for Category "COVID Response Innovation"

VISION, STRATEGY AND FUTURE OUTLOOK:

• Expand the Banks Retail, Agriculture and MSME (RAM) lending profile by leveraging its existing customer base.

• Continue to contain funding cost by sourcing low cost deposits such as CASA.

• Focus on improving asset quality and containing NPA levels.

• Leverage technology to increase cross selling opportunities, reduce cost and enhance customer experience.

• Improving Risk Management Systems to ensure long-term sustainability of our business.

DIRECTORS? RESPONSIBILITY STATEMENT:

The Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2023:

a) The applicable accounting standards have been followed along with proper explanation relating to material departures, if any,

b) The accounting policies framed in accordance with the guidelines of the Reserve Bank of India were consistently applied. Reasonable and prudent judgements and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for the year ended March 31, 2023.

c) Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities,

d) Annual accounts have been prepared on a going concern basis,

e) Internal financial controls system to be followed by the Bank were laid down and that such internal financial controls are adequate and were operating effectively,

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.