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 2021.


Domestic Business:

• Overall Domestic Business of the Bank increased by 8.72% and reached at Rs. 913,496 crore as on 31.03.2021 from Rs. 840,209 crore as on 31.03.2020.

• CASA deposits increased by 13.61% on Y-O-Y and stood at Rs. 224,669 crore, SB deposits and CD deposits grew by 14.44% and 8.14% respectively. Share of low cost deposits (CASA), in domestic deposits stood at 41.27% as on 31.03.2021.

• Total deposits increased by 14.22% over last year and reached at Rs. 551,135 crore as on 31.03.2021 from Rs. 482,539 crore as on 31.03.2020.

• Gross Domestic Advances registered growth of 1.31 %, reached at Rs. 362,361 crore as on 31.03.2021 from Rs. 357,670 crore as on 31.03.2020. The domestic CD ratio stood at 65.75% as on 31.03.2021.

• Share of RAM Advances to Total advances is 51.60% (i.e. Rs. 186,993 crore) as on 31.03.2021 as compared to 47.28% (i.e. Rs. 169,110 crore) as on 31.03.2020.

• Priority Sector lending constitute 41.25% of Adjusted Net Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 17.50%.

• Retail Credit grew by 11.87% from Rs. 60,834 crore as on 31.03.2020to Rs. 68,058 crore as on 31.03.2021. The share of Retail Credit to Total Domestic Credit was 18.78% as on 31.03.2021.

• MSME Credit grew by 12.74% from Rs. 56,092 crore as on 31.03.2020to Rs. 63,237 crore as on 31.03.2021. The share of MSME Credit to Total Domestic Credit was 17.45% as on 31.03.2021.

Overseas Business:

• Overseas business has de-grown by 5.89% and stood at Rs. 124,053 crore as on 31.03.2021 as compared to Rs. 131,817 crore as on 31.03.2020.

• Total Foreign Deposit registered a growth of 4.13%, reached at Rs. 75,978 crore as on 31.03.2021 from Rs. 72,966 crore as on 31.03.2020.

• The Overseas CD Ratio stood at 63.27% as on 31.03.2021. Global Business:

• Gross Business of the Bank registered a growth of 6.74 %, reached at Rs. 1,037,549 crore as on 31.03.2021 from Rs. 972,026 crore as on 31.03.2020.

• Total deposits increased to Rs. 627,114 crore as on 31.03.2021from Rs. 555,505 crore as on 31.03.2020.

• Gross Advances stood at Rs. 410,436 crore as on 31.03.2021.

• The Global CD Ratio stood at 65.45% as on 31.03.2021.

Financial Parameters:

• Operating Profit stood at Rs.10,872 crore as on 31.03.2021 against Rs. 11,519 crore as on 31.03.2020.

• Non Interest Income increased by 10.85% (Rs. 728 crore) reached at Rs. 7,441 crore as on 31.03.2021 on Y-O-Y basis.

• The Bank registered Net Profit of Rs. 2,160 crore for Current FY 21 as against Net Loss of Rs. 2,957 crore for previous FY 20.

• Capital Adequacy Ratio stood at 14.93% as on 31.03.2021 as against 13.10% as on 31.03.2020.

• Net Worth increased by 28.75% and reached at Rs. 27,611 crore as on 31.03.2021 from Rs. 21,445 crore as on 31.03.2020.

• Book value per share is Rs. 84.24.

• Gross NPA amount reduced by 8.15% (i.e. Rs. 5,015 crore), reached at Rs. 56,535 crore as on 31.03.2021 from Rs. 61,550 crore as on 31.03.2020.

• Gross NPA percentage reduced to 13.77% as on 31.03.2021 from 14.78% as on 31.03.2020.

• Net NPA amount reduced by 14.37% (i.e. Rs. 2,058 crore) reached at Rs. 12,262 crore as on 31.03.2021 from Rs. 14,320 crore as on 31.03.2020.

• Net NPA percentage reduced to 3.35% as on 31.03.2021 from 3.88% as on 31.03.2020.

• The Financial performance of the Bank for the year 2020-21 is summarised below:

(Amount in crore)

Particulars 2019-20 2020-21 Growth (%)
Net Interest Income 15,257 14,270 -6.47
Non-Interest Income 6,713 7,441 10.85
Operating Expenses 10,451 10,839 3.71
Operating Profit 11,519 10,872 -5.61
Provisions / Contingencies 14,476 8,712 -39.82
Net Profit/ Loss -2,957 2,160
Earnings per share (Rs.) -9.10 6.59
Book Value per share (Rs.) 65.43 84.24 20.75
Return on Equity (%) -12.41 8.81
Return on Average Assets (%) -0.43 0.28

Key Financial Ratios are presented below

Particulars 2019-20 2020-21
Yield on Advances 8.62 7.48
Yield on Investments 7.24 6.58
Yield on Funds 6.61 5.87
Cost of Deposits 4.40 4.10
Cost of Funds 4.23 3.81
Net Interest Margin 2.93 2.48
Non Interest Income to Operating Expenses 64.23 68.65
Other Income to Average Working Fund 0.97 0.98
Operating Expenses to Average Working Fund 1.63 1.57
Staff Expenses to Average Working Fund 0.96 0.94
Other Operating Expenses to Average Working Fund 0.67 0.63
Asset Utilisation Ratio 1.80 1.57
Non Interest Income to Total Income 13.68 15.49
Non Interest Income to Net Income 30.56 34.27
Cost to Income Ratio 47.57 49.92


During the current financial year, Bank has received Rs. 3,000 crore from Government of India for preferential issue of equity shares. The same is kept in Share Application Money Account, pending allotment of Shares, Bank has raised Rs. 1,352 crore by issue of Basel III compliant Additional Tier I bonds during the financial year.

During the financial year, Bank has redeemed the following bonds by exercising call option

Particulars Amount (Rs. in crore) Date of redemption
8.48 % Upper Tier II Bonds Series-VI 1,000 11.06.2020
9.05% BOI — IPDI Bonds -Series VI 300 09.09.2020

capital adequacy:

• As per Basel III framework, the Banks Capital Adequacy Ratio was 14.93% which is higher than the regulatory requirement of 10.875 %.

• Details of Capital Adequacy (BASEL III) are :





CET1 CRAR 29,059 9.88% 34,690 11.51%
AT1 CRAR 60 0.02 1,352 0.45%
Tier I Capital 29,119 9.90% 36,042 11.96%
Tier II Capital 9,419 3.20% 8,949 2.97%
Total Capital 38,538 13.10% 44,990 14.93%
Risk Weighted Assets 294,189 301,305

Business Initiatives:

During the current financial 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.

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

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

• Focus on Digitisation and Alternate Delivery Channels.

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

• In line with the GOI initiative for cashless and digital nation, Payment gateway solutions provided for various government, PSU and autonomous organization (such as NHAI, National Seeds Corporation, RITES India Ltd, BHEL etc).

• Dashboard created for monitoring of accounts opened for two project (STRIVE, NIESBUD) started by Ministry of Skill Development and Entrepreneurship.

• VISA Signature Debit Card which is a contactless metal card having multiple benefit for customers launched.

• PM SVANidhi AtmaNirbhar loan to "Street Vender" launched.

• Selected as an "Authorized bank for Yen credit transaction by GOI-MOF".

• Star Anveshan- For Employee Engagement & Connect, a special Survey is launched. Also various HR initiative like Job Family, PMS already implemented.

• End to end digitization of Retail, Agri and MSME loan process is in progress.

• Digital Document Execution rolled out, with Retail Loan process made automatic by e-signing and e-stamping.

• additional specialized credit processing centres for Retail, MSME and Agriculture advances being opened for improvement in credit quality as well as TAT.

• Lead generation system upgraded with activation of leads through all Digital channels viz. missed call, SMS, mobile banking, website, call center and also introduction of Analytics based offers to Retail and MSME clients.

• Star Mahashakti- Upgradation/ migration of IT platform from FINACLE 7 to FINACLE 10 is on advanced stage.

• Web-based - Retail Online module: launched to improve productivity and customer service by reducing turnaround time.

• Cardless Cash withdrawal using UPI QR (QRCash) has been launched by which our Bank Customers can withdraw cash from ATMs readily without the use of cards.

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

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

• 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.

• BOI SEVA - OUR Chatbot is launched on website in Hindi and English Version.

• As an FI initiative, seamless ICT Technology based basic banking services enabled in Rural & unbanked areas.

• "Tech-driven Credit monitoring System" for tracking of ‘Early Warning Signals implemented during the year.

• "Enterprise wide Fraud Risk management" framework for real-time fraud monitoring is implemented during the year.

• 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.

• 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 in various fields as under:

• 2nd 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.

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

• Bank has won Infosys Finacle Clients Innovation Award 2019.

• Infosys Finacle Client Innovation Awards in the category "Product Innovation" for QRCash, 2020.

• Best Performing Public Sector Bank in APY campaign leadership Capital 2.0 (Jan-2020) for MD &CEO.

• Best Performing Public Sector Bank in APY campaign makers of Excellence 3.0 (Nov-2019) for Executive Director.

• Bank has been awarded Rajbhasha Kirti Puraskar (1St prize) is "B" Reagion for the year 2019-20 for the excelent performance in official language implementation.

• 2nd most Trusted Brand Award in the category of Banks, both by the Readers Digest as well as the Economic Times for 2020.

• Bank has won "APY Annual Award (2020-21)" for overall performance for achieving ‘per APY target.

• Bank has awarded "Best performer under PSU category for Amazing Achievers of APY (AAA)" by PFRDA during 1st February 2021 to 31st March 2021.

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 our Risk Management Systems to ensure longterm sustainability of our business.


The Directors confirm that in the preparation of the annual accounts for the year ended March 31,2021:

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, 2021.

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.