Bank of India 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 2020.


Domestic Business:

0 Overall Domestic Business of the Bank increased by 12.04% reached at Rs. 840,209 crore as on 31.03.2020 from Rs. 749,920 crore as on 31.03.2019.

0 CASA deposits increased by 8.79% on Y-O-Y and Stood at Rs. 197,751 crore, SB deposits and CD Deposits grew by 8.39% and 11.53% respectively. Share of low cost deposits (CASA), in domestic deposits stood at 41.50% as on


0 Total Domestic deposits of the Bank increased by 14.40% reached at Rs. 482,539 crore as on 31.03.2020 from Rs. 421,783 crore as on 31.03.2019.

0 Gross Domestic Advances registered a growth of 9.00% from Rs. 328,137 crore as on 31.03.2019 to Rs. 357,670 crore as on 31.03.2020. The domestic CD Ratio stood at 74.12% as on 31.03.2020.

0 Share of RAM Advances to Total advances is 47.28% (i.e. Rs. 169,110 crore) as on 31.03.2020 as compared to 49.19% (i.e. Rs. 161,425 crore) as on 31.03.2019.

0 Priority Sector lending constituted 40.81% of Adjusted Net Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 17.10%.

0 Retail Credit grew by 7.69% from Rs 56,492 crore as on

31.03.2019 to Rs. 60,834 crore as on 31.03.2020. The share of Retail Credit to Total Domestic Credit was 17.01% as on


0 MSME Credit grew by 2.74% from Rs 54,595 crore as on

31.03.2019 to Rs 56,092 crore as on 31.03.2020. The share of MSME Credit to Total Domestic Credit was 15.68% as on


Overseas Business:

0 Overseas business has de-grown by 14.29% and stood at Rs. 131,817 crore as on 31.03.2020 as compared to Rs. 153,803 crore as on 31.03.2019.

0 Gross Foreign Advances registered a growth of 7.54% from Rs. 54,723 crore as on 31.03.2019 to Rs. 58,852 crore as on


0 The Overseas CD Ratio stood at 80.66% as on 31.03.2020.

Global Business:

0 Gross Business of the Bank registered a growth of 7.56% from Rs. 903,723 crore as on 31.03.2019 to Rs. 972,026 crore as on 31.03.2020.

0 Total Global deposits increased to Rs. 555,505 crore as on 31.03.2020 from Rs. 520,862 crore as on 31.03.2019.

0 Total Global Gross Advances increased to Rs. 416,521 crore as on 31.03.2020 from Rs. 382,860 crore as on 31.03.2020.

0 The Global CD Ratio stood at 74.98% as on 31.03.2020.

Financial Parameters:

0 Operating profit increased by 42.34% (Rs. 3426 crore) reached at Rs.11,519 crore as on 31.03.2020 on Y-O-Y basis.

0 Net loss stood at Rs. 2,957 crore as on 31.03.2020 from Rs. 5,547 crore as on 31.03.2019.

0 Capital Adequacy Ratio stood at 13.10% as on 31.03.2020 from 14.19% as on 31.03.2019.

0 Net Worth stood at Rs. 21,505 crore as on 31.03.2020 from Rs. 26,152 crore as on 31.03.2019.

0 Book value per share is Rs.65.61.

0 Gross NPA amount increased by 1.47% (i.e. Rs. 889 crore) reached at Rs. 61,550 crore as on 31.03.2020 from Rs. 60,661 crore as on 31.03.2019.

0 Gross NPA percentage reduced to 14.78% as on 31.03.2020 from 15.84% as on 31.03.2019.

0 Net NPA amount reduced by 25.15% (i.e. Rs. 4,809 crore) reached at Rs. 14,311 crore as on 31.03.2020 from Rs. 19,119 crore as on 31.03.2019.

0 Net NPA percentage reduced to 3.88% as on 31.03.2020 from 5.61% as on 31.03.2019.

The Financial performance of the Bank for the year 2019-20 is

summarised below:

Particulars 2018-19 2019-20 Growth (%)
Net Interest Income 13,658 15,257 11.71
Non-Interest Income 4,659 6,713 44.09
Operating Expenses 10,697 10,451 -2.30
Operating Profit 8,092 11,519 42.34
Provisions / Contingencies 13,639 14,476 6.13
Net Profit/ Loss -5,547 -2,957
Earnings per share (Rs.) -29.79 -9.10
Book Value per share (Rs.) 94.75 65.61
Return on Equity (%) -24.57 -12.41
Return on Average Assets (%) -0.84 -0.43

Key Financial Ratios for the year 2019-20 are presented below:

Particulars 2018-19 2019-20
Yield on Advances 8.23 8.62
Yield on Investments 7.40 7.24
Yield on Funds 6.60 6.61
Cost of Deposits 4.50 4.57
Cost of Funds 4.39 4.23
Net Interest Margin 2.56 2.93
Non Interest Income to Operating Expenses 47.97 64.23
Non Interest Income to AWF 0.77 0.97
Operating Expenses to Average Working Fund 1.73 1.63
Staff Expenses to Average Working Fund 0.98 0.96
Other Operating Expenses to Average Working Fund 0.76 0.67
Asset Utilisation Ratio 1.31 1.80
Non Interest Income to Total Income 11.18 13.68
Non Interest Income to Net Income 27.31 30.56
Cost to Income Ratio 56.93 47.57


During the year Bank has raised fresh capital of Rs.4638.00 corers by issue of the following capital instruments. Bank has not raised any Bonds during the financial year.

Date of issue No. of shares Price Amount (Crores) Details
20.04.2019 517633928 89.60 4638.00 Preferential issue to the Govt of india

During the year ended March 31, 2020, Bank redeemed following bonds by exercising call option

Series in Crore Date of redemption
Upper Tier II - Series III 500.00 28.07.2019
Upper Tier II - Series IV 500.00 28.08.2019
IPDI- Series V 325.00 09.12.2019
Upper Tier-II Bonds Series V 1000.00 20.01.2020


0 As per Basel III framework, the Banks Capital Adequacy Ratio was 13.10% which is higher than the regulatory requirement of 10.875%

0 Details of Capital Adequacy (BASEL III) are :





CET1 CRAR 33,683 11.01% 29,059 9.88%
AT1 CRAR --- --- --- ---


Tier I Capital 33,870 11.07% 29,119 9.90%
Tier II Capital 9,534 3.12% 9,419 3.20%
Total Capital 43,404 14.19% 38,538 13.10%
Risk Weighted Assets 305,953 294,189

Business Initiatives:

During the current year the Bank has implemented various initiatives

for a Prompt Turn Around. A few of them are mentioned as under:

• Concept of Area Managers and Star Prime implemented for being more customer focused and for business development, recovery, digitization at ground level and re-activation of branches.

• Strategy for re-balancing of portfolio in favour of RAM advances (Retail, Agriculture and MSME) and reducing exposure to Corporate sector.

• A non-discriminatory OTS Scheme called “Mission Samaadhan” formulated for quick resolution of NPAs.

“Swarna Dhara” - Gold Loans have been intensified.

• Refurbishing select branches as “Star Digi” branches with high end digitalized services for tech savvy customers.

“War Room” and “Watch room” formed in each Zone for Recovery, NPA reduction and credit monitoring/trigger management.

Tech-driven Credit Monitoring System for tracking of ‘Early Warning Signals under implementation.

• On boarded the Contactless Platform (psbloansin59minutes. com)

• Launched GST based Financing to MSME Borrowers.

• Actively participating in the Udyami Mitra Portal -

marketplace for new MSME loans.

Digi Branches: 255 Select Branches converted to Digi Branches for meeting the demands of Next Gen Customers.

Star Mahashakti- Up gradation of IT platform from FINACLE 7 to FINACLE 1• .

Centralised processing centres: New 11 RBCs and 28 new SME City Centres opened and separate Gold Loan cells formed in all Zones within the existing infrastructure to increase RAM business.

• Selected as an “Authorized bank for Yen credit transaction

by GOI-MOF” for Yen credit transaction.

• Focus on Digitisation and Alternate Delivery Channels.

• Activation of Growth Centers through Business Correspondents (BCs) called “Star Points” for expanding our outreach.

• Launched Retail loans on Tab application to augment new Retail business and generation of leads in retail loans.

• Creation of Stressed Asset Management Vertical (SAMV)

for faster resolution of Stressed assets/NPAs.

“Borrower Health Profile (BHP)” built-up for Proactive Credit Monitoring with dedicated manpower.

Digitalizing the process of MSME Credit to improve the TAT and efficiency.

Cardless Cash withdrawal using UPI QR (QRCash) has

been launched for Customers to withdraw cash from ATMs readily without the use of cards.

Mobile and Internet Banking system upgraded with enhanced features for better customer experience.

Document management system (DMS) has been introduced for retrieval of documents and also helps us to store, track, manage and access our data in a more flexible and hassle free way.

COVID-19 related specific loans/working capital/scheme promotion has been done using SMS and custom URL, using our BOI website. It also helps us in monitoring to generate leads and facilitate timely credit to interested customer.

0 BOI SEVA - OUR Chatbot is launched on website in English version on 7/9/2019. Hindi version of the Chatbot has also since been made available.

0 As an FI initiative, seamless ICT Technology based basic

banking services enabled in Rural & unbanked areas.

“Enterprise wide Fraud Risk Management” framework for real-time fraud monitoring is under process.

Rationalisation of Domestic/overseas branches and

ATMs being undertaken to reduce the Operational Cost.

• Special drive for opening of Government Accounts & Pension accounts among branches across the country.

Debit Card Control App & Credit Card Control App have been launched to enable customers to have a full control over the card activity.

Customer Outreach Initiative conducted in 18 districts and participated in more than 200 districts for augmenting credit off-take and expansion of financial inclusion and digital banking.

Door Step Banking (DSB) through Universal Touch points

(Call Centre, Website and an App) has been introduced for providing banking services to customers from the Agents engaged by the Bank.


The Bank has been conferred Awards during FY 2019-20 in various fields as under:

• Bank of India has won the second Most Trusted Brand

Award in the Banks category awarded by the Readers Digest Trusted Brand, 2019.

• In the India Banking Summit & Awards 2019, Bank of India ranked as Best Public Sector Bank 2019 by Synnex Group.

Best Performing Public Sector Bank in APY Formation Day Campaign (FY2019-20) by PFRDA.

• ETBFSI Excellence Awards 2019- Most Innovative Large Size Bank of the Year for QR Cash.

• SKOCH ORDER-OF-MERIT AWARD 2019 in GOLD Category for BOI Mobile.

• SKOCH Award 2019 in SILVER Category for BOI Mobile.

• Bank of India has been conferred CSO-100 Award-2019 from IDG Media for Implementation of Best Information Security Practices.

0 Bank has won Infosys Finacle Clients Innovation Award



• Expand the Banks retail, agriculture and MSME 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 our risk management systems to ensure long-term sustainability of our business


The Directors confirm that in the preparation of the annual accounts

for the year ended March 31,2020:

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 judgments 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,


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.