central bank of india share price Management discussions
Global Economy
The global economy is in a recovery phase following the impacts of the Covid-19 pandemic and the Russia-Ukraine war. While supply constraints have eased, inflation remains a concern due to volatile oil prices. Contact-intensive services, which were heavily affected during the pandemic, have witnessed demand and supported growth. However, manufacturing has faced challenges due to input cost pressures, supply chain disruptions, and the China lockdown affecting the availability of essential inputs and slowing global economic growth.
According to the World Economic Outlook report released by the International Monetary Fund (IMF) in April 2023, global growth is projected to reach 2.8 percent in 2023 and 3.0 percent in 2024. Global inflation is expected to moderate to 7.0 percent in 2023 from 8.7 percent in 2022, further declining to 4.9 percent in 2024. The report highlights India as a "bright spot" in the world economy, projecting growth of 5.9 percent for India in 2023. India accounted for a 7.3 percent share in global growth in 2022.
The global economic slowdown is primarily concentrated in advanced economies, with the United States experiencing a slowdown in GDP growth to 1.1 percent in the first quarter of 2023, following 2.6 percent growth in the fourth quarter of 2022. The US Federal Reserve has increased its policy rates to 5-5.25 percent in May 2023 to achieve the target of 2 percent inflation. US consumer inflation has dipped to an annual rate of 4.9 percent, lower than expected and the lowest since April 2021. The Federal Open Market Committee (FOMC) will closely monitor the transmission of monetary policy and its impact on economic activity, inflation, and financial developments.
In Europe, the European Central Bank (ECB) raised its benchmark borrowing costs to 3.25 percent. Annual inflation in the Euro Zone rose to 7 percent in April after five consecutive months of decline. The United Kingdom continues to experience inflation above 10 percent in March 2023, and further rate hikes are expected to control inflation. The UK, being a net importer of energy, is more affected by the rise in oil prices due to the Russia-Ukraine war. Euro area growth is expected to fall to 0.8 percent in 2023, with the UK economy projected to contract by 0.3 percent in the same year.
The IMF has lowered Japans growth estimates for 2023 to 1.3 percent, reflecting weaker external demand and investment. However, Japans economy grew at 1.6 percent in January-March 2023, indicating a rebound after a technical
recession last year. This growth momentum can be attributed to government-provided price relief measures and strong wage growth. Core consumer inflation in Japan reached 3.1 percent in March 2023, exceeding the target of 2 percent, while the Bank of Japan continues to maintain an ultra-loose monetary policy stance.
The share of Emerging Market and Developing Economies (EMDEs) in world GDP is 58.3 percent, with China accounting for 18.5 percent. EMDEs are expected to experience a dip in growth at 3.9 percent in 2023 before rebounding to 4.2 percent in 2024, according to the IMF report.
India Economy
The annual GDP growth of India for the year 2022-23 as per the National Statistical Office (NSO) is 7.2 percent. The Reserve Bank of India (RBI) has increased policy rates by 250 basis points since May 2022. Inflation has cooled down and remained within the targeted range set by the RBI, at 4.7 percent in April 2023 and 5.6 percent in March. The steady demand and easing of supply constraints are expected to strengthen the Indian economy, with inflation projected to remain within the target range and no further rate hikes anticipated in the future.
The Index of Industrial Production (IIP), which measures industrial output, recorded a growth of 1.1 percent in March 2023. The IIP had been consistently growing since Diwali, indicating a sustained improvement in industrial activity. The Purchasing Managers Index (PMI) for manufacturing in April suggests continued resilience in the manufacturing sector.
The Indian rupee experienced depreciation against the USD, reaching 82.6 per USD in mid-March 2023. Concerns have arisen due to global banking instability, resulting in sharp selling pressure on emerging market currencies. Throughout 2023, the rupee remained under pressure due to an imbalanced current account, significant capital outflows, and RBIs interest rate hikes. Strong import demand has also contributed to the current account deficit. Foreign Portfolio Investors (FPIs) were net sellers for most months in FY23. Total exports increased by 5.8 percent in FY 2023, compared to a significant increase of 45.1 percent in FY 2022. Total imports also experienced growth, rising by 16.3 percent, although at a lower pace compared to the previous fiscal years increase of 56.1 percent
Banking
Despite confronting a challenging international financial landscape during the first half of FY 2022-23, the banking industry showed resilience, backed by satisfactory capital
buffers, and controlled non-performing loan levels. Banks witnessed an enhancement in profitability during this period, driven primarily by a rise in net interest income, as rising interest rates exerted limited initial impact on investment portfolios.
Bank credit growth surged, mirroring the recovery in economic activities. Non-food bank credit of Scheduled Commercial Banks (SCBs) surged to 16.7% (year-on-year) as of September 9, 2022, from 9.7% as of the end of March 2022. This robust growth persisted into the second half of 2022-23, buoyed by a rebounding economy, with non-food bank credit accelerating to 15.4% by the end of March 2023 from 9.7% a year earlier. As credit growth surpassed aggregate deposit growth, the incremental credit-deposit ratio exceeded 100%.
There was an improvement in bank credit across all major sectors in FY 2022-23. The agriculture sector witnessed a 13.4% credit growth in the first half of FY 2022-23, matching the growth of the prior year, stimulated by an aboveaverage monsoon, and increased agricultural credit targets. Industry credit bounced back to 11.4% from 1.5% last year, spearheaded by large industries and consistent growth in the MSME segment. Retail loans continued to propel credit growth throughout FY 2022-23, with sustained high credit growth across major sub-sectors in the second half due to a resurgence in demand.
The aggregate deposits of SCBs grew faster during FY 202223, driven by substantial interest rate increases, slowing to 9.6% by March 24, 2023, compared to 8.9% growth the previous year (as of March 25, 2022). Deposit growth accelerated during the year due to banks raising rates on term deposits, although it lagged behind credit growth.
The SCBs asset quality improved, with the overall nonperforming assets (NPA) ratio decreasing to 5.6% in June 2022 from 7.5% a year earlier, falling further to 4.5% in December 2022 from 6.5% a year earlier, marking an improvement across all major sectors. As the policy repo rate increased from May 2022, banks deposit and lending rates ascended during the first half of 2022-23. From May 2022 to February 2023, the Weighted Average Lending Rate (WALRs) increased across all sectors. Banks efforts to secure retail deposits to fund credit growth led to a more rapid transmission to retail deposit rates in the second half. Amid moderating systemic liquidity, banks also elevated their term deposit rates during the first half of 2022-23.
The Weighted Average Domestic Term Deposit Rate (WADTDR) on new deposits, encompassing both retail and bulk, soared by 222 basis points from May 2022 to February 2023. Banks initially concentrated on securing bulk deposits during the first half. This trend shifted in the second half, with the increase in new retail deposit rates (122
basis points) surpassing that in new bulk deposit rates (77 basis points). The transmission to WADTDR on outstanding deposits steadily improved, reflecting the longer maturity of term deposits contracted at fixed rates. The increase in term deposit rates in the current tightening cycle exceeded that in lending rates, indicating a higher demand for sustainable funds from depositors.
Central Bank of India’s Business
Central Bank of India Surpasses Business Growth Targets with Strong Financial Performance
in Cr
| PARTICULARS | MAR’22 | MAR’23 | Y-o-Y Growth % |
| Total Business | 532404 | 577075 | 8.39 |
| Total Deposits | 342692 | 359296 | 4.85 |
| (Including Interbank | |||
| Deposits) | |||
| CASA Deposits | 172480 | 180312 | 4.54 |
| CASA % | 50.58 | 50.39 | (19) bps |
| Total Advances | 189712 | 217779 | 14.79 |
| RAM | 125000 | 144735 | 15.79 |
| Corporate | 64712 | 73044 | 12.88 |
| CD Ratio | 55.63 | 60.86 | 523 bps |
Business Growth Targets Surpassed
Central Bank of India (CBI) achieved exceptional results in FY2023, surpassing its business growth targets. Your Banks total business increased from INR 532,404 crores to INR 577,075 crores, representing a year-on-year growth of 8.39%. It outperformed its guidance of 8% to 10% for business growth. Central Bank of Indias remarkable performance, focus on asset quality, technological transformation, and customer-centric approach position your Bank for continued success. With comprehensive outlook across various aspects, your Bank strives to maintain growth, improve profitability, and provide exceptional service to its customers. CBI achieved its highest-ever recorded net profit in FY2023, amounting to INR 1,582 crores, surpassing the previous record set in 2010.
Advances and Credit-Deposit Ratio
CBI demonstrated robust growth in advances, with total advances surging from INR 189,712 crores to INR 217,779 crores, marking a remarkable growth rate of 14.79%. Within the advances segment, the Retail, Agriculture, and MSME (RAM) category witnessed substantial growth, increasing from INR 125,000 crores to INR 144,735 crores, representing a growth rate of 15.79%. Corporate advances also experienced healthy growth, rising from INR 64,712
crores to INR 73,044 crores, indicating a growth rate of 12.88%. The credit-deposit ratio increased significantly from 55.63% to 60.86%, signifying CBIs expanding lending activities compared to its deposit growth.
Strong Overall Performance
Your Bank maintained a balanced credit book, with 66.46% in RAM and 33.64% in the corporate segment, slightly exceeding the target ratio. The net interest margin (NIM) stood at 3.64%, surpassing the target of more than 3%. The gross non-performing assets (NPA) remained slightly above the target of below 8% at 8.44%, but the net NPA remained well under control at 1.77%. Your Bank demonstrated a strong provision coverage ratio (PCR) of 92.48%, surpassing the target of more than 92%. The slippage ratio remained low at 1.62%, below the estimated range of 2% to 2.25%. The credit cost was also lower than expected at 0.83%, below the target range of 1% to 1.25%.
Your Bank maintains a strong focus on asset quality, aiming for credit costs below 1% and stressing the importance of maintaining strong corporate and MSME books. Your Bank recognizes the need for technological transformation to leverage its customer base and drive future growth. Ongoing efforts in technology enhancement are expected to yield results starting from the third quarter.
Your Bank registered a year-on-year growth of 25.40% in fee-based income, driven by factors such as PSLC sales, recoveries, and other miscellaneous income. Your Bank expects fee-based income and service charges to remain steady.
Your Bank maintains stability in its restructured book and has a strong grip on MSME collections. Your Bank expects the cost-to-income ratio to be around 53% to 55% in the current fiscal year, with a target of coming below 50% in the next fiscal year. It projects a reduction in gross NPA through planned initiatives. Leveraging its customer base and technology enhancements, CBI aims to strengthen its position.
Resource Mobilisation
In the period from March 2022 to March 2023, Central Bank of India witnessed growth in various deposit categories. CBI experienced a growth rate of 4.85% in total deposits, which rose from INR 342,692 crores to INR 359,296 crores. Specifically, CASA deposits increased from INR 172,480 crores to INR 180,312 crores, reflecting a growth rate of 4.54%. The current deposits increased from INR 16,515 crores to INR 17,781 crores, representing a year-on-year growth of 7.67%. Savings deposits also experienced growth, rising from INR 1,55,965 crores to INR 1,62,531 crores, reflecting a growth rate of 4.21%.
in Cr
| PARTICULARS | MAR’22 | MAR’23 | Y-o-Y Growth % |
| Current | 16515 | 17781 | 7.67 |
| Savings | 155965 | 162531 | 4.21 |
| Total CASA Deposits | 172480 | 180312 | 4.54 |
| CASA % | 50.58 | 50.39 | (19) bps |
| Core Time Deposits | 168481 | 177446 | 5.32 |
| Total Core Deposits | 340961 | 357758 | 4.93 |
| Inter Bank Deposits | 1656 | 1456 | (12.08) |
| Total Deposits | 342692 | 359296 | 4.85 |
The total CASA deposits, which include both current and savings deposits, increased from INR 1,72,480 crores to INR 1,80,312 crores, indicating a growth rate of 4.54%. However, the CASA percentage, which represents the proportion of CASA deposits to total deposits, slightly decreased from 50.58% to 50.39%, showing a decline of 19 basis points (bps).
Core time deposits, another category of deposits, rose from INR 1,68,481 crores to INR 1,77,446 crores, reflecting a growth rate of 5.32%. The total core deposits, including both core time deposits and CASA deposits, increased from INR 3,40,961 crores to INR 3,57,758 crores, marking a growth rate of 4.93%. On the other hand, interbank deposits decreased from INR 1,656 crores to INR 1,456 crores, representing a decline of 12.08%.
New Initiatives
These new initiatives align with CBIs focus on technological advancement, asset quality management, revenue diversification, operational efficiency, and risk mitigation. By implementing these strategies, your Bank aims to enhance its competitive position, drive sustainable growth, and provide exceptional service to its customers.
1. Technological Transformation: CBI recognizes the need for technological transformation to leverage its customer base and drive future growth. Ongoing efforts in technology enhancement are expected to yield results starting from the third quarter. This initiative aims to improve operational efficiency, enhance customer experience, and support digital banking services.
2. Focus on Asset Quality: CBI maintains a strong focus on asset quality, aiming for credit costs below 1%. By emphasizing the importance of maintaining strong corporate and MSME books, your Bank aims to mitigate risks and ensure a balanced credit portfolio.
3. Fee-Based Income Growth: In FY2023, CBI registered a year-on-year growth of 25.40% in fee-based income.
This growth was driven by factors such as PSLC sales, recoveries, and other miscellaneous income. Your Bank expects fee-based income and service charges to remain steady, indicating its focus on diversifying revenue streams.
4. Restructured Book Management: CBI maintains stability in its restructured book and has a strong grip on MSME collections. This initiative involves actively managing and monitoring the restructured assets to ensure timely repayments and minimize credit risks.
5. Cost-to-Income Ratio Optimization: CBI aims to improve operational efficiency by targeting a cost-to-income ratio of below 50% in the next fiscal year. This initiative involves streamlining processes, optimizing resource allocation, and implementing cost-saving measures to enhance profitability.
6. Reduction in Gross NPA: CBI projects a reduction in gross non-performing assets (NPA) through planned initiatives. By actively managing and resolving stressed assets, your Bank aims to strengthen its balance sheet and improve overall asset quality.
Emerging Business
Co-Lending
During the fiscal year 2021-22, Central Bank of India (CBI) strategically implemented several initiatives to enhance its lending capabilities and support the growth of Retail, Agriculture, and MSME (RAM) sectors. These initiatives aimed to maximize your Banks reach, improve access to credit, and foster economic development in line with the RBI guidelines.
Establishment of Emerging Business Vertical: Central Bank of India (CBI) has introduced a dedicated vertical, called Emerging Business, to strengthen its focus on advancing loans in the Retail, Agriculture, and MSME sectors (RAM)., to facilitate the growth of advances in these key sectors through multiple avenues, including co-lending, pool buyout, and trade receivables discounting of MSME units on the TReDS platform. By leveraging these mechanisms, CBI aims to bolster its presence in the RAM sectors and effectively address the diverse financing needs of its customers.
Co-Lending Partnerships: In line with RBI guidelines and to bolster lending activities in the Retail, MSME, and Agriculture segments under the Priority Sector, CBI forged strategic co-lending partnerships with seven leading NonBanking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) in the country. These partnerships enable CBI to extend credit to a wider range of borrowers and leverage the expertise of these specialized entities. Through the co-lending model, your Bank aims to optimize resource utilization, enhance risk management, and ensure the availability of credit to deserving borrowers in priority
sectors. During the fiscal year 2022-23, Central Bank of India expanded its co-lending partnerships by collaborating with seven leading NBFCs/HFCs in the country. This brought the total count of partnerships to 14 as of March 31,2023. These partnerships aim to increase lending in the Retail, MSME, and Agriculture sectors, both within the priority sector and nonpriority sector, in accordance with the guidelines provided by the Reserve Bank of India (RBI). These co-lending partnerships have enabled Central Bank of India to further support the development and expansion of Retail, MSME, and Agriculture sectors, contributing to the overall economic growth and fulfilling the banks commitment to meeting the diverse financing needs of its customers.
The impact of these co-lending initiatives on advances growth during the fiscal year is as follows:
( in crore)
| Segment | Sanctions during 2023 | Outstanding as on 31.03.2023 |
| Amount sanctioned | Amt. O/S as on 31.03.2022 | |
| RETAIL | 3694.32 | 4383.71 |
| MSME | 198.63 | 1916.22 |
| Agriculture | 4.72 | 3.75 |
| Total | 5619.27 | 6303.67 |
The growth in advances during the year due to Pool Buyout is as under:
( in crore)
| Segment | Sanctions during 2023 | Outstanding as on 31.03.2023 |
| Amount sanctioned | Amt. O/S as on 31.03.2022 | |
| RETAIL | 1500.00 | 3516.81 |
| MSME | 200 | 161.97 |
| Total | 1700 | 3678.78 |
These collaborative efforts have significantly contributed to the growth and diversification of CBIs loan book. By joining forces with established NBFCs and HFCs, your Bank has harnessed synergies, expanded its customer base, and improved access to credit for individuals and businesses operating in the RAM sectors.
Moving forward, CBI remains committed to further strengthening its collaboration with co-lending partners, exploring innovative lending models, and proactively supporting the financing needs of Retail, Agriculture, and MSME segments. These initiatives align with your Banks strategic vision, regulatory obligations, and its continued dedication to fostering inclusive growth and financial empowerment.
Performance Highlights of TReDS Platform - As of March 31, 2023
The TReDS platform has demonstrated remarkable growth and achievements during the fiscal year 2022-23. The performance highlights are as follows:
1. Total Turnover: The total turnover achieved for FY 2022-23 amounted to INR 6098.94 crore, showcasing a substantial increase compared to the turnover of INR1972.10 crore in FY 2021-22. This significant growth reflects the growing acceptance and adoption of the TReDS platform by corporates and public sector undertakings (PSUs).
2. Turnover by Category: Out of the total turnover of INR 6098.94 crore, INR 3338.79 crore was generated through transactions in the corporate category, while INR 2760.15crore was facilitated under the PSU category. These figures indicate the diverse participation and widespread utilization of the TReDS platform by both corporate entities and PSUs.
3. Total Outstanding: As of March 31, 2022, the total outstanding amount on the TReDS platform stood at INR1205.03 crore. This reflects the ongoing business activity and the strength of the platform in facilitating trade receivables financing.
The performance of the TReDS platform underscores its effectiveness in enabling seamless transactions and providing much-needed liquidity to businesses. The substantial increase in turnover compared to the previous fiscal year demonstrates the growing confidence and reliance on this innovative platform for efficient management of trade receivables.
Credit Highlights
The total gross advances of the Bank increased to 217,779 crore as of March 31, 2023, representing a growth of 14.79% compared to the previous year. During the financial year, fresh corporate credit of 42,579.24 crore was sanctioned. The Bank updated its loan policy and master circulars to improve asset quality and manage credit risks, ensuring more effective systems and controls and faster decision-making. Interest rates were rationalized to enhance the Banks competitiveness in the market. All borrowal accounts were brought under the regulatory limits of the Large Exposure Framework. The Bank also sanctioned the Corporate Credit Guarantee Enhancement Line (CGECL) to eligible corporate accounts and invoked the regulatory framework of the One Time Restructuring (OTR) for eligible corporate accounts. The introduction of the Green Channel provided centralized access for corporate customers at the Central Office, streamlining their relationship with the Bank. The Bank realigned its portfolio with an increased exposure to AAA-rated borrowers and implemented a standard operating procedure for downgrades in external credit ratings. The
EBLR linked ROI product was extended for tenors ranging from more than 2 years up to 15 years. Internet banking services were made available to all corporate customers and other CC/OD account holders. Guidelines and SOPs were established to provide financial assistance for the enhancement of ethanol distillation projects. Additionally, the Bank revised NBG guidelines and takeover norms to facilitate the ease of obtaining fresh loans.
Credit Monitoring & Policy
Central Bank of India has established a dedicated vertical called Credit Monitoring & Policy, led by a General Manager, with the objective of improving the quality of its credit portfolio. The department is actively engaged in various activities to ensure effective credit monitoring and policy implementation. Some of the major activities undertaken by the department include:
- The credit monitoring activities of your Bank encompass several key practices and processes. This includes the establishment of Credit Monitoring Committees at controlling offices and large branches, conducting monthly meetings to discuss credit monitoring matters. Additionally, your Bank evaluates the exercise of delegated lending powers at different levels on a monthly basis. Root-cause analysis of Special Mention Accounts (SMA) is conducted to identify underlying issues and proactively address them. Your Bank also monitors the coverage and closure status under the Loan Review Mechanism. Ensuring the accuracy of inventory valuation and verification is done through the conduct of stock audits in borrowed CC/OD accounts 5 crore and above.
- Accounts are regularly reviewed and renewed to ensure timely updates and appropriate risk assessment. Periodic inspections of securities are conducted to validate their existence and market value. Your Bank verifies the completeness and enforceability of collateral documentation to ensure the perfection of securities. Early Warning Signals (EWS) of borrowal accounts are monitored through a dedicated portal to identify potential financial distress and facilitate early resolution. Upon observing EWS, accounts are red-flagged for further investigation, following RBI guidelines.
- Specialized Monitoring Agencies (ASM) are engaged to monitor the operations and transactions of large-value borrower accounts continuously. Credit Processing and Approval Centres (CPAC) are established in regional offices to empower branches in credit decisions and facilitate streamlined verification of pre-disbursal activities. A War Room at the Central Office is operated to monitor and follow up on all SMA accounts with exposure up to 1.00 crore, were as accounts above 1 crore are being monitored by Credit monitoring department itself. A system for quarterly review of loan
accounts, including listed companies, is implemented to monitor actual business performance.
- Timely submission of loan account details to Credit Information Companies and NeSL (Information Utility) is ensured, along with the submission of default reports and main reports of borrowal accounts to CRILC. Various regulatory returns and Management Information System (MIS) related to advances are also submitted on time. Your Bank actively monitors the registration of security interest with CERSAI. Lastly, credit-related policies are regularly updated in accordance with notifications from RBI and the Government of India. These practices collectively contribute to effective credit monitoring within the bank.
These activities undertaken by the Credit Monitoring & Policy vertical play a crucial role in enhancing credit quality, mitigating risks, and ensuring compliance with regulatory requirements.
PRIORITY SECTOR
In accordance with RBI directives, Central Bank of India (CBI) is mandated to allocate 40% of its Adjusted Net Bank Credit (ANBC) or an equivalent credit amount of off-balance sheet exposure, whichever is higher, to the Priority Sector. For FY2023, the Banks Total Priority Sector Advances accounted for 54.48% of its ANBC, surpassing the regulatory norm of 40%. This highlights CBIs strong commitment to meeting the credit needs of priority sectors as identified by the RBI. By exceeding the mandated allocation, your Bank demonstrates its dedication to supporting economic growth, fostering financial inclusion, and addressing the specific needs of sectors such as agriculture, micro, small, and medium enterprises (MSMEs), education, housing, and more.
The performance of the Bank under various segments of priority sector as on 31.03.2023 is as under:
| S l . No. | Particulars | Mar-20 | Mar-21 | Mar-22 | Mar-23 | Growth (%) |
| 1 | Priority Sector Advance | 79987.91 | 88222.47 | 93886.50 | 103513.76 | 10.25 |
| Percentage achievement of ANBC | 45.07% | 51.96% | 44.08% | 54.48 | ||
| 2 | Total Agriculture Advance | 34419.4 | 36206.99 | 38635.40 | 42110.35 | 8.99 |
| Percentage achievement of ANBC | 19.54% | 21.32 | 19.79% | 21.98 | ||
| 3 | MSME | 29250.15 | 32356.43 | 34138.55 | 39898.83 | 16.87 |
| 4 | Education Loan | 2341.42 | 2724.77 | 2485.20 | 2242.55 | -9.76 |
| 5 | Housing Loan (upto 25 Lakh) | 13939.37 | 16744.07 | 18503.23 | 19188.99 | 3.71 |
| 6 | Other Priority Sector | 17.51 | 24.77 | 13.14 | 6.64 | -49.46 |
| 7 | Renewal Energy | 0 | 2.35 | 2.25 | 1.40 | -37.77 |
| 8 | Social Infrastructure | 7.22 | 153.15 | 104.40 | 58.87 | -43.61 |
| 9 | Export Credit | 12.84 | 9.93 | 4.33 | 6.13 | 41.57 |
During the financial year 2022-23, Central Bank of India witnessed an increase in credit deployment under the priority sector, reaching 103,513.76 Crore. This represents a significant increase of 9,627.26 Crore compared to the previous year. In order to capitalize on the excess lending over Adjusted Net Bank Credit (ANBC) in the priority sector, your Bank engaged in sale transactions involving Priority Sector Lending Certificates (PSLCs). Your Bank successfully sold PSLCs worth 4,650.00 Crore under the Priority Sector, with 1,000 Crore under General PS, 2,950 Crore under Small and Marginal Farmers, and 700 Crore under Micro Enterprises. Furthermore, your Bank holds an outstanding Rural Infrastructure Development Fund (RIDF) amounting to 2,072.18 Crore under the Priority Sector, with 1,556.74 Crore specifically allocated to the Agriculture sector as of March 31,2023. These initiatives and accomplishments reflect the banks commitment to meeting priority sector lending targets and supporting crucial sectors of the economy.
Agriculture
In the fiscal year under consideration, the total Agriculture credit witnessed a significant increase of 3,474.95 crores, rising from 38,635.40 crores as of March 31,2022, to 42,110.35 crores as of March 31,2023. This growth demonstrates the banks commitment to supporting the agricultural sector and meeting the financing needs of farmers. Moreover, the net percentage of agriculture credit to adjusted net bank credit (ANBC) stood at 21.98%, surpassing the stipulated target of 18% set by regulatory authorities. This achievement highlights the banks dedication to fulfilling its priority sector lending obligations and contributing to the development of the agriculture industry.
Your Bank offers a range of schemes to cater to the diverse needs of the agricultural and allied sectors. These schemes
include:
• Cent Kisan Credit Card: This scheme provides a single window credit facility for various agricultural expenses such as cultivation of crops, post-harvest expenses, marketing of produce, and working capital for farm asset maintenance.
• Cent Agri Gold Loan: Quick financing is provided for crop production and investment credit in agriculture and allied activities against the pledge of gold ornaments and gold coins issued by the bank.
• Cent SHG Bank Linkage: This scheme focuses on lending to Self-Help Groups (SHGs) through revolving cash credit and term loans.
• DAY-NRLM: Launched by the Ministry of Rural Development, this scheme aims to finance women SHGs under a mission mode approach.
• Cent AMI (Agriculture Marketing Infrastructure) Scheme: Financial assistance is provided for the creation of marketing infrastructure with modern technology, grading facilities, quality certification, and scientific storage for managing the marketable surplus of the agricultural and allied sector.
• Cent Poly House, Green House, Shade-Net House:
This scheme offers financial assistance for undertaking protected farming of high-quality commercial horticulture crops.
• Cent Dairy: Financial support is provided for the establishment of dairy units for milk production.
• Cent Agri Clinic / Agri Business: The scheme provides financial assistance for setting up Agri Clinics and Agri Business Centers by candidates who possess the required qualifications and meet the schemes criteria.
• Cent Farm Machinery: Financing options are
available for the purchase of tractors, trailers, and other agricultural implements.
• Cent Kisan Sathi: This scheme assists indebted farmers in reducing their outstanding dues payable to money-lenders and brokers.
• Cent Scheduled Tribe: Financial assistance is provided to weaker sections under the Scheduled Tribe category.
• Cent Poultry: Finance is offered for the establishment and operation of poultry farm units.
• Cent Fishery: Financial support is provided for traditional and commercial fishing activities.
• Cent Agri Infra: This scheme provides medium to longterm debt finance for investment in projects related to post-harvest management.
• Cent Solar — PMKUSUM Scheme: The scheme offers finance to farmers, Farmer Producer Organizations (FPOs), and cooperative of farmers for setting up decentralized solar or other renewable energy-based power plants.
• Cent Animal Husbandry Infra: Financial assistance is provided for dairy processing and value addition infrastructure, meat processing and value addition infrastructure, and animal feed plants.
• Cent FPO: This scheme provides finance to Farmer Producer Organizations (FPOs) and Farmer Producer Cooperatives (FPCs) up to 75.00 crores.
• Cent FIDF: The scheme offers finance for the creation and modernization of capture and culture fisheries infrastructure to reduce post-harvest losses.
• Cent PMFME Scheme: Financial support is provided for setting up and modernizing Micro Food Processing Enterprises.
• Cent Cold Storage: The scheme meets the financial needs of cold storage and warehouse units, with a maximum limit of 50.00 crores.
Initiatives taken to accelerate the flow of credit to the Agriculture sector included various special credit campaigns. All rural and semi-urban branches organized monthly mega credit camps to promote and sanction new agricultural loans. Additionally, special credit camps were organized for SHGs bank linkage, facilitating access to credit for self-help groups. Your Bank also ensured crop insurance coverage for eligible farmers under the "Pradhan Mantri Fasal Bima Yojana" (PMFBY) by submitting the opt-in option for crop insurance coverage. Focus was given to investment credit and financing for self-help groups in the agricultural sector, with an emphasis on extending credit to small and marginal farmers. To enhance credit flow and increase coverage under social security schemes, village-level weekly camps were organized by all rural and semi-urban branches to create awareness among farmers. These efforts aimed to promote financial inclusion and support the growth of the agricultural sector.
Financial Inclusion (FI)
Central Bank of India is dedicated to promoting financial inclusion and empowering individuals from diverse backgrounds. Your Bank has implemented various initiatives to ensure equal access to financial services and support the overall well-being of its customers. The Cent Grah Laxmi Scheme specifically caters to women customers, allowing them to become property owners, thereby fostering economic independence and empowerment. In line with Sustainable Development Goals (SDGs), CBI has established Financial Literacy and Counselling Centres (FLCC) to provide comprehensive financial education and guidance to individuals, aiming to achieve greater financial inclusion. Additionally, your Bank recognizes the valuable contributions of retired personnel and has brought them on board as consultants, leveraging their experience and knowledge for the benefit of customers. CBI celebrates "Samman Divas" to honour senior citizens and retired bank employees, acknowledging their significant contributions to your Banks growth. To cater to the needs of children, your Bank has introduced the Cent yuva product, which provides insurance coverage under the Pradhan Mantri Jeevan Jyoti Bima Yojana, with your Bank bearing the premium cost. CBI also prioritizes the well-being of its employees by offering regular health check-ups under the staff welfare scheme. Moreover, in alignment with the National Apprenticeship Promotion Scheme (NAPS) initiated by the Government of India, CBI has appointed more than 17% of its total
workforce as apprentices, fostering skill development and creating opportunities for young individuals to gain valuable work experience. Through these initiatives, CBI remains committed to promoting financial inclusivity, recognizing the contributions of various stakeholders, and nurturing the overall welfare of its customers and employees.
Central Bank of India has extended its banking services to 24,311 villages by deploying 13,142 Business Correspondent (BC) agents. This initiative aims to bring banking facilities to rural areas and promote financial inclusion. Additionally, your Bank has also opened 997 Urban Financial Inclusion centers, further expanding its reach to urban communities.
Your Bank has witnessed a substantial number of transactions during the reporting period, as follows:
Transactions in Financial Inclusion (FI) accounts opened through Business Correspondents (BCs) have shown a significant increase, from 563.35 lakh transactions in FY 202223 to 675.88 lakh transactions, representing a year-on-year growth of 19.97%. This growth reflects the rising utilization and adoption of FI accounts by customers, highlighting the effectiveness of the banks efforts in expanding financial inclusion and providing accessible banking services to underserved communities.
The business conducted through Business Correspondents (BCs) witnessed a notable increase, with the value rising from 3285.77 Crores as of 31st March 2022 to 4001.86 Crores as of 31st March 2023. This represents a year-on-year growth
of 21.79%. The significant growth in business through BCs highlights the success of the banks strategy in expanding its reach and delivering financial services to unbanked and underserved areas.
The number of accounts opened through Business Correspondents (BCs) experienced a growth of 9.54% year- on-year. The count of accounts increased from 150.09 Lacs on 31 March 2022 to 164.41 Lacs as of 31 March 2023. This increase reflects the banks efforts in promoting financial inclusion and reaching out to the unbanked population through the BC model. By leveraging the services of BCs, Central Bank of India has been successful in expanding its customer base and providing access to banking services to a larger segment of the population.
Under the Pradhan Mantri Jan Dhan Yojana (FI-PMJDY)
initiative during the fiscal year 2022-23, Central Bank of India achieved significant milestones. The major achievements are as follows:
1. Business through Business Correspondent (BC) outlets witnessed a substantial growth of 21.79%. The business volume increased from 3285.77 Crores to 4001.86 Crores. This growth reflects the effectiveness of the BC model in expanding the banks reach and providing financial services to underserved areas and populations.
2. The total Financial Inclusion (FI) business recorded a growth of 18.62%. The business volume increased from 5641.06 Crores to 6691.59 Crores. This growth demonstrates the banks commitment to promoting financial inclusion and catering to the diverse banking needs of individuals and communities.
3. The percentage of Aadhaar seeding in PMJDY (Pradhan Mantri Jan Dhan Yojana) accounts witnessed a positive trend. It increased to 88.59% from 86.24% in PMJDY accounts and improved to 94.96% from 93.15% in all operative PMJDY accounts. Aadhaar seeding plays a crucial role in enhancing the efficiency and effectiveness of financial inclusion by enabling seamless transactions and identification verification.
Total enrollment under Social Security Scheme as on 31.03.2023 with a growth achieved over 31.03.2022 is as under
| Social Security | FY2021-22 | FY 2022-23 | Growth% |
| Scheme | |||
| PMJJBY | 19,23,653 | 21,21,789 | 10.29% |
| PMSBY | 55,74,581 | 68,20,243 | 22.34% |
| APY | 15,81,162 | 19,39,900 | 22.68% |
Out of a total of 15,097 death claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Central Bank of India has settled and paid 14,245 claims. Similarly, out of 4,568 death claims under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), your Bank has settled and paid 3,302 claims.
Performance under Lead Bank
As the Lead Bank, Central Bank of India holds the responsibility in 53 districts across eight states, namely Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Rajasthan, Chhattisgarh, and Sikkim. These districts account for approximately 25% of our branches. To ensure the effective implementation of the Lead Bank Scheme, our Lead District Managers offices have been equipped with adequate staffing, infrastructure, and resources, including independent premises, vehicles, computers, printers, telephones, internet connections, and email IDs. In an effort to raise awareness about our banks products among the public, particularly in rural areas, we have displayed information on products such as Kisan Credit Card, Central Artisan Credit Card, Swabhiman, and Aadhaar on the vehicles provided to our Lead District Managers.
We actively engage in various developmental activities, including the full implementation of Financial Literacy and Financial Inclusion Programmes, training unemployed rural youth through RSETIs (Rural Self Employment Training Institutes), and promoting the formation of Self Help Groups (SHGs) and farmers groups. These initiatives demonstrate our commitment to driving development and financial inclusion in the regions where we hold the Lead Bank responsibility.
Financial Literacy and Credit Counselling Centre (FLCC)
Central Bank of India has established 48 Financial Literacy and Credit Counselling Centres (FLCCs) in seven states, including Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Rajasthan, and Chhattisgarh. Additionally, we have set up four FLCCs at the block level in Kerala and five CFLs at the block level in Darbhanga District, Bihar. These centres serve as platforms for mass campaigns
and individual counseling sessions, enabling us to reach and educate a wide range of individuals. To enhance our outreach efforts, we have equipped the FLCCs with vehicles fitted with Public Address Systems and LCD screens to display information about various banking products and schemes. This enables us to create awareness among the masses and provide them with opportunities to uplift their economic status and improve their standard of living. Furthermore, we provide literacy materials, kits, books, and other resources during counselling sessions and village visits, ensuring that individuals have access to the necessary information and support to make informed financial decisions.
Rural Self Employment Training Institutes (RSETIs)
Central Bank of India has established 46 Rural Self Employment Training Institutes (RSETIs) in nine states across the country, including Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Chhattisgarh, Rajasthan, Orissa, and Assam. These RSETIs play a crucial role in providing skill development and entrepreneurial training to individuals from rural areas. During the fiscal year 202223, the RSETIs conducted a total of 960 training programs, successfully imparting training to 27,428 candidates. Out of these candidates, a significant number of 21,036 individuals, accounting for 77% of the trainees, were able to secure employment or establish their own ventures with the support of bank credit, wage settlement, or self-financing options. Moreover, the credit linkage for the settled candidates reached a commendable figure of 12,045, representing 57% of the individuals who received training. This achievement highlights the effectiveness of our efforts in promoting selfemployment and fostering financial independence among individuals in rural communities. Through our RSETIs, we remain committed to empowering aspiring entrepreneurs with the necessary skills and resources to succeed in their chosen ventures, contributing to the overall socio-economic development of the regions we serve.
Central Bank of India has taken additional initiatives to support and streamline the operations of its Rural Self Employment Training Institutes (RSETIs) and Financial Literacy and Credit Counselling Centres (FLCCs). To ensure effective management and oversight of these institutions, your Bank has established a dedicated society/trust called "Central Bank of India Samajik Utthan Avam Prashikshan Sansthan" (CBI-SUAPS). This society/trust serves as the controlling body, responsible for supervising the functioning and activities of the RSETIs and FLCCs.
Furthermore, your Bank has set up a Governing Council at the apex level to provide overall guidance and supervision. The council comprises the Managing Director and CEO of your Bank as the Patron, the Executive Director as the President, and General Managers as members. This council
plays a vital role in ensuring the effective management and coordination of the RSETIs and FLCCs, fostering their growth and success.
MSME Department
MSME Central Bank of India has shown remarkable performance in the Micro, Small, and Medium Enterprises (MSME) sector, underscoring your Banks commitment to supporting the growth and development of these crucial businesses. The following highlights and initiatives demonstrate your Banks proactive approach in addressing the financing needs of MSMEs and driving their success.
Performance Highlights: Your Banks dedication to
microcredit is evident in the impressive 58.68% share of Microcredit to MSE (Micro and Small Enterprises) without considering Priority Sector Lending Certificates (PSLC). This demonstrates your Banks focus on serving the needs of microenterprises, which form a significant part of the MSME segment.
Central Bank of India has achieved a notable year-on-year growth rate of 28.75% under the Micro category, showcasing its commitment to supporting the growth and expansion of microenterprises. This growth signifies your Banks effective lending strategies and initiatives tailored to the specific requirements of microenterprises.
Under the Pradhan Mantri Mudra Yojana (PMMY), your Bank has achieved a commendable accomplishment of 73.39% of the target set by the Department of Financial Services, Ministry of Finance, Government of India. While the disbursement target was set at 6,350 crore, Central Bank of India achieved disbursements amounting to 4,660.24 crore as of March 2023. This achievement reflects your Banks proactive efforts in providing accessible and affordable credit to micro and small businesses.
Initiatives: Central Bank of India has implemented various initiatives to further support the MSME sector and enhance their access to financial services. Your Bank extended the Emergency Credit Line Guarantee Scheme (ECLGS), providing much-needed financial assistance to MSMEs during challenging times.
To facilitate seamless fiscal management for businesses, your Bank introduced the Cent GST scheme, which is based on GST return data. This initiative allows businesses to leverage their GST records to access tailored financial solutions, streamlining their financial operations and enhancing their growth prospects.
Central Bank of India has established partnerships with Corporate Direct Selling Agents (DSA) to generate new MSME business. These collaborations enable your Bank to
leverage corporate networks and reach a wider audience of potential MSME borrowers, fostering business growth and expansion.
Way Forward: Looking ahead, Central Bank of India has outlined a clear roadmap to further strengthen its support to the MSME sector. Your Bank aims to provide cluster-based finance through customized products, recognizing the unique needs and challenges faced by specific MSME clusters. This approach ensures targeted financial solutions that align with the requirements of different industries and geographic concentrations. To enhance lead generation and expand its reach, Central Bank of India plans to collaborate with Fintech companies. These partnerships will leverage technological advancements to identify potential MSME borrowers and streamline the loan application process, facilitating quicker access to credit for businesses.
Recognizing the significant potential in the Hotels and Tourism industry, your Bank is developing a new scheme specifically designed to cater to the financial requirements of this sector. This initiative aims to unlock the growth potential of businesses operating in the tourism ecosystem, contributing to the overall development of the sector. Central Bank of India is actively working towards launching a platform for Supply Chain Finance, which will provide an integrated and efficient solution for financing the supply chains of MSMEs. This platform will enhance operational efficiency and strengthen the financial ecosystem for MSMEs, enabling smoother and faster transactions.
Your Bank is committed to digitalization and automation of loan processing, streamlining the lending process for MSMEs. By leveraging technology, Central Bank of India aims to improve operational efficiency, reduce processing time, and provide a seamless experience for MSME borrowers. Through these initiatives and future plans, Central Bank of India remains dedicated to empowering and supporting the growth of MSMEs, facilitating their vital role in driving economic development and creating employment opportunities.
Active products of the MSME business-
1 General MSME
2 Cent Business
3 Cent MUDRA
4 Cent Mortgage Business
5 Cent CGECL
6 PMEGP
7 Cent GST
8 Cent WHR
9 Cent Textiles Scheme
10 Cent Arthias
11 Cent Shop
12 Cent Contractor
13 Cent Pragati
14 SRTO ( Transport Operator )
15 Cent Vehicle Business
16 Cent Sanjeevani
17 Cent Ceramic
18 Cent Rental
19 Stand Up India
20 NULM
21 Cent Weaver Mudra
22 PM Svanidhi
23 Cent Equipment Financing scheme
24 Cent Business Gold Loan Scheme
25 Cent Kalyani
26 Mukhyamantri Udyam Kranti Yojana- M.P
27 Loan Guarantee Scheme For Covid Affected Sectc
28 Central Laghu Udhyami Credit Card
29 Cent Custom Hiring Centre (M.P)
30 Credit Enhancement Guarantee Scheme For Scheduled Castes
31 Indira Gandhi Shahari Credit Card Yojana - Rajasthan
32 Cent Open Term Loan
33 Jagananna Thodu
34 Cent Gold Jewellery Manufacturing Scheme
35 Commercial Vehicle DDR MP
36 Mukhya Mantri Gramin Path Vihreta Rin Yojana
Discontinued products of the MSME business
1. Cent Trade
2. Cent Healthcare
3. Cent Jeevak
4. Mukhya Mantri Swarozgar Yojana (M.P Only)
5. Mukhya Mantri Yuva Udhyami Yojna ( M.P Only)
6. Mukhya Mantri Krishak Udhyami Yojna ( M.P Only)
MSME Performance
| Particulars | 31.03.2022 | 31.03.2022 | 31.03.2023 | 31.03.2023 | Y-o-Y% | Y-o-Y% |
| without PSLC | with PSLC | without PSLC | with PSLC | growth without PSLC | Growth with PSLC | |
| MICRO Enterprises | 16980 | 16980 | 21162 | 21862 | 24.62% | 28.75% |
| MSE | 31379 | 31379 | 35358 | 36058 | 12.68% | 14.91% |
| MSME (PS) | 34433 | 34433 | 39199 | 39899 | 13.84% | 15.87% |
| TOTAL MSME | 34433 | 34433 | 39199 | 39899 | 13.84% | 15.87% |
| Particulars | 31.03.2022 | 31.03.2022 | 31.03.2023 31.03.2023 | Y-o-Y% | Y-o-Y% | |||||
| without PSLC | with PSLC | without PSLC with PSLC | growth without PSLC | growth with PSLC | ||||||
| % OF MSME ADVANCE TO TOTAL ADVANCE | 19.46% | 19.46% | 17.99% 18.32% | -1.47% | -1.14% | |||||
| RBI MANDATES (PRIME MINISTER TASK FORCE) | 31.03.2022 (audited) | 31.03.2023 (Audited) | TARGET MAR-23 | |||||||
| No. of Accounts in Micro Ent. | 867652 | 646806 | 954417 | |||||||
| % Y-O-Y Growth in Number of Accounts under Micro Enterprises | -6.27% | -25.45% | 10% | |||||||
| RBI MANDATES (PRIME MINISTER TASK FORCE) | 31.03.2022 | 31.03.2022 | 31.03.2023 | 31.03.2023 | TARGET | |||||
| (audited) Without PSLC | (audited) With PSLC | (audited) Without PSLC | (audited) With PSLC | Mar-23 | ||||||
| MSE Portfolio (Amt.) | 31379 | 31379 | 35358 | 36058 | NA | |||||
| % Y-O-Y Credit Growth under MSE | 4.72% | 4.72% | 12.68% | 14.91% | NA | |||||
| % of Micro Credit to MSE Credit | 54.11% | 54.11% | 58.68% | 60.63% | NA | |||||
| MICRO ENT. O/S AS ON 31.03.22 | MICRO ENT. O/S AS ON 31.03.22 | MICRO ENT. O/S AS ON 31.03.23 | MICRO ENT. O/S AS ON 31.03.23 | ANBC As on 31.03.2022 | ANBC As on 31.03.2023 | STATUS TARGET as on MAR-22 | STATUS TARGET as on MAR-23 |
| Without PSLC | With PSLC | Without PSLC | With PSLC | 01-03-2022 (in Crore) | 01-03-2023 (in Crore) | without with PSLC (7.50% OF PSLC ANBC) | without with PSLC (7.50% OF PSLC ANBC) |
| 16980 | 16980 | 21162 | 21862 | 167598 | 185261 | 10.13% 10.13% | 11.42 % 11.80 % |
Retail Credit
The retail sector has been a significant contributor to the growth of Central Bank of India, demonstrating robust performance in the analysed period. Your Bank aims to empower individuals and fulfil the aspirations of retail customers across various segments by offering a wide range of retail lending products and services. From March 2022 to March 2023, the retail sector witnessed a remarkable year-on-year growth rate of 20.10%, with the total retail advances increasing from 52,226 crore to 62,726 crore. This substantial growth highlights your Banks success in capturing market opportunities and meeting the evolving needs of retail customers.
Central Bank of India continues to focus on the retail sectors growth, leveraging its strong market position, customercentric approach, and technological advancements. By offering innovative products and services, strengthening customer relationships, and maintaining prudent credit risk management practices, your Bank aims to sustain its growth momentum in the retail sector while ensuring optimal asset quality and profitability.
In March 2022, your Bank sanctioned loans to 201,616 retail accounts, amounting to 11,579 crore. By March 2023, the number of sanctioned accounts increased to 224,769, with a total amount of 19,730 crore. This represents a significant year-on-year growth of 11.48% in the number of accounts and 70.39% in the sanctioned loan amount. Furthermore, the outstanding balance in the retail sector increased from 52226 crore in March 2022 to 62726 crore in March 2023, indicating a growth rate of 20.10% year-on-year.
Within the retail sector, housing loans constituted a major portion, amounting to 38,793 crore, highlighting your
Banks active participation in providing financial support for home ownership. Auto loans, with a total value of 3,248 crore, demonstrate efforts to facilitate vehicle ownership, while personal loans, totalling 3,644 crore, play a crucial role in meeting individual financial needs. Education loans, amounting to 3,625 crore, underline your Banks commitment to supporting the educational aspirations of students and their families. The retail segment also includes other retail loans, totalling 13,416 crore, catering to diverse needs such as consumer durables, lifestyle expenses, and small-ticket personal financing.
Central Bank of India has achieved notable accolades, including being recognized as the Best Performer for the PMAY(U)-CLSS scheme by HUDCO for two consecutive years. Your Banks focus on cross-selling and upselling to existing customers has resulted in a significant increase in retail loans sanctioned and disbursed amounts. The retail portfolio experienced a year-on-year growth of 21.78%, surpassing education loan targets with a 100% achievement rate. Launching the "Pre-Approved Personal Loan" (PAPL) digital lending module has streamlined the process of providing personal loans to existing customers. Leveraging the Account Aggregator platform, your Bank successfully generated retail lending business. Strengthening intermediaries such as DSAs has played a vital role in generating leads for mortgage- based retail loans. The utilization of digital lending platforms and data mining techniques has further enhanced business generation. Through strategic tie-up arrangements with M/s TATA Motors and M/s Maruti Suzuki Ltd., your Bank facilitated financing for a significant number of four-wheelers. Special campaigns conducted on occasions resulted in substantial business growth and exclusive benefits for customers. Your Bank has also reviewed and improved various retail lending schemes, making them more appealing, competitive, and customer-friendly.
These initiatives highlight Central Bank of Indias commitment to the retail sectors growth and its dedication to providing exceptional service and customer-centric solutions. By adapting to the changing ecosystem, leveraging technology, and maintaining a robust risk management framework, your Bank aims to ensure sustainable growth, profitability, and customer satisfaction in the retail lending segment.
Contribution of Retail Loans to Loan Book
WAY FORWARD:
Looking ahead, Central Bank of India has a positive outlook for the growth of retail advances in the current fiscal year, FY 2023-24. The department is committed to closely monitoring customer demand and reviewing products to align them with market trends and customer requirements. Embracing the digital lending space is a key focus to meet the expectations of the Nextgen customers. Several initiatives have already been initiated to ensure the banks retail loan portfolio grows in line with anticipated market growth and peer banks.
1. Existing retail loan products are continuously revisited to enhance their attractiveness and align them with potential borrowers requirements. Your Bank aims to reduce costs and offer competitive rates of interest, matching the products offered by peer banks.
2. The scope of the Pre-Approved Personal Loan, initially available only for ETB customers maintaining a salary account, will be expanded to cater to other customers as well.
3. Your Bank will prioritize vehicle loans and further leverage tie-up arrangements with companies such as M/s TATA Motors and M/s Maruti Suzuki Ltd. It also intends to enter into partnerships with other companies such as Honda, Mercedes Benz, and Hyundai Motors.
4. Building on the successful utilization of customer databases in FY 2022-23, your Bank will extensively leverage its existing data mining capabilities to generate business through analytical and behavioral models.
5. Data analytics reports will be analyzed to identify opportunities for cross-selling and upselling, with leads communicated through platforms such as WhatsApp, SMS, and the call centre. Your Bank aims to promote various retail products to customers.
6. Digital marketing strategies will be explored to leverage the extensive digital footprint of customers and enhance the visibility of the banks retail products through digital portals.
7. In FY 2023-24, your Bank plans to establish specific tie- up arrangements with reputed builders such as Godrej and Piramal to capture housing loans directly through the builder network. Integration with these builders for end-to-end lead generation will also be considered.
8. Your Bank will actively participate in exhibitions and programs organized by builder associations and aim to organize dedicated bank exhibitions in Tier II, Tier III, and Tier IV cities to promote home loan business.
9. Strategic partnerships with major four-wheeler car manufacturers will be pursued to facilitate lending in the four-wheeler segment. Your Bank has already entered an MOU with M/s Maruti Suzuki Ltd and is in advanced discussions with other leading car manufacturing companies.
10. Your Bank will initiate end-to-end integration with fintech companies, a step towards lending in the retail asset segment through digital platforms. An MOU with a leading fintech company in the four-wheeler segment for end-user lending is currently in progress.
11. Aggressive efforts will be made to establish tie-ups for customized retail asset products with various state governments, central government departments, institutions, , among others, specifically targeting lending to employees of these institutions.
Through these strategic initiatives, Central Bank of India
aims to sustain its growth momentum, expand its retail loan
portfolio, and provide tailored solutions to meet the diverse
needs of its retail customers.
International Division
Foreign exchange business at Central Bank of India is conducted through 64 Authorized Dealer (‘B category) Branches nationwide, along with an Integrated Treasury Branch in Mumbai serving as an ‘A Category Branch. To ensure operational efficiency, your Bank maintains a centralized Dealing room in Mumbai for effective funds management and operational convenience. Additionally, a centralized SWIFT cell operates in the Integrated Treasury Branch, Mumbai, to ensure compliance.
Your Bank offers a comprehensive range of trade finance products and services to its exporter and importer customers. The International Division at the Integrated Treasury Branch facilitates foreign inward remittances to India, enabling direct credit of up to USD 10,000 to savings account holders. Various exporters meets were conducted across India to enhance awareness about the banks facilities and products among exporters. In FY 2022-23, special campaigns were arranged for NRIs, especially during festive occasions.
Central Bank of India also deploys foreign currency funds through interbank placements with the foreign branches of various scheduled commercial banks. As of March 31,2023, your Bank has deployed foreign currency funds equivalent to 16,426 Crore through such placements.
The Export Credit portfolio of your Bank stood at 4,176 Crore as of March 31, 2023, compared to 4,389 Crore as of March 31,2022, representing a decrease of 4.85% over the previous year. Merchant trade foreign exchange turnover during FY 2022-23 amounted to 52,661 Crore, reflecting a significant increase of 51.70% compared to 34,715 Crore in FY 2021-22.
As of March 31,2023, NRE Deposits in your Bank amounted to 5,275 Crore, a decrease of 3.18% from 5,448 Crore as of March 31, 2022. FCNR Deposits as of March 31, 2023, stood at USD 226.02 million, with no major change compared to USD 226.24 million as of March 31,2022.
Treasury, Funds and Investment
The composition of the investment portfolio of the Bank is as under:
( in Crores)
| S. Composition | 31.03.2023 | 31.03.2022 |
| no | ||
| 1 SLR | 103203.62 | 105841.66 |
| 2 Non - SLR | 39449.27 | 40917.60 |
| TOTAL | 142652.89 | 146759.26 |
To manage the impact of the rising interest rate scenario, Central Bank of India has maintained its investment portfolio
at 142,653 crore as of March 31,2023, which includes Non- SLR and Non-Transferable Govt. of India Recapitalization bonds worth 19,580 crore. This reflects a slight decrease compared to 146,759 crore as of March 31,2022.
The year saw a significant increase in CPI inflation, reaching 7.79% in April 2022, driven by higher food and commodity prices as well as disruptions in the global supply chain. Throughout the year, inflation remained above the Reserve Bank of Indias (RBI) upper tolerance level of 6%.
In response to the inflationary pressures, the RBI implemented a series of key policy rate hikes, totaling 250 basis points since May 2022. The Introduction of the Standing Deposit Facility (SDF) at a rate 40 basis points higher than the fixed rate reverse repo resulting into effective rate hike of 290 basis points since April of the previous year.
As a result of these developments, government security (Gsec) yields increased across the curve, with the 10-year benchmark reaching a peak level of 7.69% in June 2022, compared to the closing level of 6.84% on March 31,2022. These adjustments reflect the banks efforts to manage its investment portfolio and navigate the challenging interest rate environment.
Snapshot of Treasury Income ( in Crores)
| Particulars | FY2021 - 22 | FY 2022 - 23 |
| Profit on Sale of Investment | 491 | 273 |
| Profit on Exchange Transaction | 199 | 303 |
| Dividend Income | 8 | 8 |
| Profit/Loss on Revaluation on Investment | (277) | 2 |
| Treasury Income | 421 | 586 |
Due to the hardening of yield, with the ten-year benchmark yield closing at 7.31% as of March 31, 2023, compared to 6.84% on March 31, 2022, the Treasury Profit of Central Bank of India decreased from 491 crores to 273 crores. However, Treasury Income increased from 421 crores to 586 crores. The yield on investment (excluding trading profit) remained relatively stable, with a marginal change from 6.27% in 2021-22 to 6.26% in 2022-23.
To minimize the impact of the yield hardening, your Bank successfully reduced the Modified Duration and PV01 ( in crores) of the Available-for-Sale (AFS) portfolio. As of March 2023, the Modified Duration and PV01 stood at 1.53 and 4.40 respectively, compared to 1.62 and 6.38 as of March 2022. This reduction was achieved by increasing investments in Fixed Rate Bonds (FRB), Treasury Bills (T-Bill),
and hedging of the AFS portfolio.
Furthermore, Bank shifted Central and State Government securities worth 15,037 crore from Held-to-Maturity (HTM) to AFS, and 14,913 crore from AFS to HTM during the fiscal year 2022-23. This strategic adjustment allowed for better portfolio management and alignment with regulatory requirements.
Risk Management
Risk Management System/Organizational Set Up
Risk Management systems are now well established in the Bank. The Risk Management Committee of the Board of Directors regularly oversees the Banks Risk Management policies/practices under Credit, Market and Operational risks & Pillar II risks. The Committee reviews the policies and procedures for pricing of products and assesses the risk models so as to remain in sync with the market developments and also identifies and controls new risks. The committee also regularly monitors compliance of various risk parameters by the concerned departments at the corporate level.
Risk Management Structure
At The operational level, various Committees such as Asset Liability Management Committee (ALCO) for Market Risk, Credit Risk Management Committee (CRMC) for Credit Risk and Operational Risk Management Committee (ORMC) for Operational Risk have been constituted comprising of members from the top management team. These Committees meet at regular intervals throughout the year to assess and monitor the level of risk under various Bank operations and initiate appropriate mitigation measures wherever necessary.
The Bank has identified officers in the rank of Chief Manager/ Senior Managers/Managers to act as ‘Risk Managers at all the Regional/Zonal Offices. The Risk Managers act as the ‘Extended Arms of the Risk Management Department of the Central Office at the Zonal Level. The Bank has also identified officers at the senior level in various functional departments of Central Office to act as ‘Nodal Officer to look into various aspect of control & management of risk in the Bank.
Bank has a well-documented Integrated Risk Management Policy.
Market Risk Management
The Mid Office plays a crucial role in the Central Bank of India by conducting regular reviews of the market position, funding patterns, and ensuring compliance with exposure limits, duration limits, counterparty limits, and other sensitive parameters. These reviews provide valuable insights and are presented to the top management at regular intervals.
To effectively manage risk, your Bank utilizes tools such as
Value-at-Risk (VaR) and Duration gap analysis. These tools are employed on an ongoing basis to measure and mitigate potential risks to the banks profitability in the short term and equity value in the long term.
In line with Basel III guidelines for Market Risk, your Bank has developed a model to estimate the capital charge on the trading portfolio. This model is continuously implemented to comply with regulatory requirements and effectively manage market risk.
To ensure comprehensive risk management, your Bank has a board-approved Market Risk Management Policy in place. This policy serves as a framework to monitor and control market risk within the banks portfolio. Counterparty limits for treasury operations are regularly reviewed and adjusted as necessary.
The Asset & Liability Committee, chaired by the MD & CEO, is responsible for overseeing the developments in market risk. This committee monitors and assesses the banks exposure to market risk and takes necessary actions to mitigate potential risks.
Credit Risk Management
The Central Bank of India has implemented a comprehensive Rating Model for assessing the creditworthiness of borrowers across various sectors such as large corporates, infrastructure, NBFCs, SMEs, and agriculture. These rating models play a crucial role in evaluating the credit risk associated with each borrower and ensuring prudent lending practices.
In addition to the rating models for corporate borrowers, your Bank has also developed Rating Models, known as scorecards, specifically designed for grading retail loans. These models enable your Bank to assess the creditworthiness of individual retail borrowers and determine appropriate risk ratings for their loans.
The Credit Risk Management Committee, led by the MD & CEO, oversees and monitors the developments in credit risk management within the bank. This committee plays a key role in setting policies, reviewing credit risk management practices, and making informed decisions to mitigate credit risk exposure.
Furthermore, your Bank has successfully implemented advanced approaches for capital computation using a SAS solution. This implementation enables your Bank to enhance its capital adequacy calculations and align with regulatory requirements, ensuring robust risk management practices.
Operational Risk Management
The Central Bank of India has implemented a robust
Operational Risk Management framework guided by a Board- approved Operational Risk Management Policy. This policy ensures that your Bank has a comprehensive system in place to manage and measure operational risks aligned with its risk profile and risk appetite.
The Operational Risk Management Committee (ORMC) oversees the implementation of the Operational Risk Management framework and ensures its regular monitoring. The committee reviews and approves the methodologies and tools used for operational risk assessment, including risk identification, assessment, and reporting methods. It also analyzes frauds, near misses, non-compliance events, breaches, and systemic improvements, presenting suitable controls and mitigations for managing operational risks.
To mitigate risks associated with new products, processes, or activities, your Bank has established a New Product Approval Policy Framework. This framework provides guidelines for evaluating and managing the risks associated with introducing new products or activities, ensuring prudent risk management practices.
Your Bank has also developed a Business Continuity Plan to ensure the uninterrupted delivery of products and services in the event of disruptions. This plan outlines the operating procedures and predefined capacities to respond to and recover from disruptions, aligning with the banks business continuity objectives.
In terms of data collection and reporting, your Bank has implemented an Incident Management Module (IMM) under the Integrated Risk Management Solution (IRMS) for the collection of loss event data and near miss events related to operational risk. This allows your Bank to track and analyze operational risk incidents for proactive risk management.
The Operational Risk Management Committee, led by the MD & CEO, plays a vital role in overseeing the developments in operational risk management. The committee ensures that the banks operational risk management practices are effective, aligned with regulatory requirements, and support the banks overall risk management objectives.
Capital Planning
Bank has a robust ICAAP (Internal Capital Adequacy Assessment Process) policy in place. Bank has framed its risk appetite framework and intends to maintain capital ratios over and above the minimum requirements as per Basel III norms. Review of the capital vis a vis the estimates are undertaken on a quarterly basis.
Asset & Liability Management systems (ALM)
The Asset and Liability Management (ALM) function in the
Central Bank of India plays a crucial role in measuring and managing the liquidity and interest rate risk of the bank. The primary objective of ALM is to maximize profitability while ensuring effective risk management.
The Asset and Liability Committee (ALCO) meets regularly to review the banks liquidity position and other market-related matters. During the fiscal year 2022-23, the ALCO convened 17 times to assess and monitor the banks liquidity and interest rate risk profile.
In addition to regulatory reporting, the ALM function is responsible for determining interest rates on deposits, as well as fixing the base rate, Marginal Cost of Funds Based Lending Rate (MCLR), Repo Rate Linked Rate (RBLR), and External Benchmark Linked Rate (EBLR). Throughout the year 2022-23, your Bank made revisions in deposit interest rates, base rate, RBLR, EBLR, and MCLR multiple times to align with market dynamics.
Your Bank adheres to the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) guidelines set by the Reserve Bank of India (RBI). The LCR, which measures the banks ability to meet short-term liquidity requirements, remained above the threshold limit of 100% for the fiscal year 2022-23, with an average LCR of 302.34%. Similarly, the NSFR, which assesses the long-term stability of the banks funding sources, also remained above the minimum requirement of 100%, with an NSFR of 161.50% as of March 31,2023.
The Asset and Liability Committee, headed by the MD & CEO, is responsible for overseeing the developments in managing liquidity and interest rate risk. The committee ensures that your Bank maintains an optimal balance between profitability and risk management, while complying with regulatory guidelines and maintaining a strong liquidity position.
Implementation of Basel III guidelines
The Central Bank of India has implemented the New Capital Adequacy Framework as per the guidelines issued by the Reserve Bank of India (RBI) in July 2015. Your Bank has adopted Basel III norms and follows the Standardized Approach for Credit Risk, Basic Indicator Approach for Operational Risk, and Standardized Duration method for Market Risk to determine its capital adequacy.
To ensure effective risk management, your Bank has established various policies such as the Credit Risk Management Policy, Operational Risk Management Policy, Market Risk Management Policy, Credit Risk Mitigation Policy, Collateral Management Policy, Asset and Liability Management Policy, Model Risk Policy, Model Validation Policy, Credit Review Policy, Intragroup Transactions and Exposures Policy, Integrated Risk Management Policy,
Business Continuity Planning (BCP) Policy, and Internal Capital Adequacy Assessment Process (ICAAP). These policies have been duly approved by the board and provide a comprehensive framework for managing different types of risks.
Sam and Recovery
The Bank has implemented a well-defined Recovery Policy to effectively manage non-performing assets (NPAs). This policy encompasses various aspects, including monitoring NPAs, implementing follow-up measures, exploring compromise settlements, adhering to the SARFAESI Act, appointing enforcement agencies, allocating portfolios for recovery, facilitating the sale of assets to ARCs through the Swiss Challenge Method, and addressing cases of willful default.
During the financial year 2022-23, the Bank achieved notable success in NPA recovery and upgradation.
| 31-03-2023 | 31-03-2022: | |
| Cash Recovery | 4213 | 3617: |
| Upgradation | 658 | 1337: |
| Gross NPA | 18386 | 28156: |
| Net NPA | 3592 | 6675: |
| Gross NPA% | 8.44 | 14.84: |
| Net NPA% | 1.77 | 3.97: |
To further aid NPA resolution, the Bank implemented two One Time Settlement (OTS) Schemes. The Special OTS Scheme was applicable to NPAs/OD in SB & CD (DA3/Loss) with customer exposure up to 2.00 lakh as of March 31, 2022, and to all accounts classified as NPA as of the same date, including PWO/TWO accounts with customer exposure up to 10 crore. Additionally, an OTS Scheme under the Net Present Value (NPV) Approach was introduced for all NPA accounts, regardless of security. Under these schemes, proposals amounting to 2915 Crore were settled for 2129 Crore during FY 2022-23.
The Bank also successfully sold 4 NPA accounts to ARCs through the Swiss Challenge Method on a 100% cash basis, resulting in a cash recovery of 165 Crore and reducing the NPAs by 314 Crore. Moreover, 97 accounts were declared as willful defaulters, and under the SARFAESI Act, the Bank conducted auctions for 1373 properties, selling 191 properties and generating 367.22 Crores.
The Bank signed Inter-Creditor Agreements (ICA) in 21 accounts with a total outstanding amount of 6525.60 Crore as of March 31,2023. The Bank has set aside a total provision of 4963.56 Crore for these accounts.
Furthermore, the Bank approved and implemented resolution plans in 10 accounts in compliance with the RBI circular dated 07.06.2019. These accounts had an outstanding amount of 1930.09 crore as of March 31,2023. The Bank has made a total provision of 686.05 crore for these accounts.
To strengthen NPA resolution efforts, the Bank signed Inter-Creditor Agreements (ICA) for accounts with banking exposure of 1500 Crore and above, following RBI guidelines. Resolution Plans were duly approved and implemented in compliance with the RBI circular dated 07.06.2019. The Bank maintained close daily monitoring of NPAs and conducted regular reviews of legal actions and SARFAESI- based recovery initiatives. Video conferences were held with field functionaries to assess progress and provide guidance.
Additionally, the Banks RO Recovery Team, in collaboration with branch staff, individually contacted NPA borrowers with an outstanding amount of 10 lakhs and above to facilitate their recovery.
Bancassurance
The Bancassurance Cell within your Bank is responsible for distributing life, non-life, and health insurance products and receives a commission for these services. Your Bank holds a corporate agency license from IRDAI, which is valid until March 31, 2025, allowing it to engage in insurance distribution activities.
| Sr Name of the Insurance No. Company | Category |
| 1 Life Insurance Corporation of India | Life Insurance |
| 2 TATA AIA Life Insurance Co. Ltd | Life Insurance |
| 3 The New India Assurance Co. Ltd | Non-Life Insurance |
| 4 Bajaj Allianz General Insurance co Ltd. | Non-Life Insurance |
In line with the new IRDAI regulations of 2015, known as "open architecture," your Bank has formed partnerships with multiple insurance companies operating in the life, non-life, and health insurance segments.
Here are the performance highlights for the year ending on March 31,2023:
• Your Bank successfully sold 66,509 life insurance policies, resulting in a commission of 78.86 crore.
• In the non-life insurance business, your Bank sold 248,089 policies, earning a commission of 12.27 crore.
• The total earnings from the bancassurance business amounted to 91.13 crore.
• Your Bank has a dedicated team of 2,578 specified
persons who actively source bancassurance business for the bank.
Depository Services
The Bank is a Depository Participant with an arrangement with Central Depository Services Ltd (CDSL). All the operations are centralized, and the services are offered through our Nodal Branch, Capital Market Services Branch, located at Fort Mumbai. The branches in major centres facilitate the opening of the accounts, buying and selling, pledge of Shares and dematerialization of physical securities. The bank has 28899 Demat Account Holders.
Capital Market Services Branch was opened in Mumbai exclusively for offering capital market facilities such as ASBA, Demat, Clearing Bank, Payment of Dividend Warrants and Credit/Guarantee facilities to Brokers etc., and is the video conferences are held with Field Functionaries on a monthly basis NPA Borrowers with an outstanding of 10 lakh & above are being contacted individually by RO Recovery Team along with branch staff for its recovery controlling branch for Demat and ASBA.
Online Demat account opening facility was started with arrangement with Central Depository Services Ltd (CDSL) software OLAO and bank has implemented 3 in 1 E-Trading facility(Trading+Demat+Saving) in tie-up with Motilal Oswal Financial Services Limited for our Demat clients.
Digital Payments & Transaction Banking
During the financial year 2022-23, your Bank witnessed significant digital transactions across various channels. The daily average count of UPI transactions stood at 55.47 lakhs, showcasing the popularity and widespread adoption of this payment method. Similarly, IMPS transactions had a daily average count of 3.94 lakhs, indicating the convenience and efficiency of instant money transfers. Internet Banking transactions had a daily average count of 0.45 lakhs, while Mobile Banking transactions had a daily average count of 0.42 lakhs, reflecting the growing preference for digital banking services.
POS/E-Com transactions recorded a daily count of 1.12 lakhs, highlighting the increasing usage of debit and credit cards for retail purchases. As of March 31, 2023, your Bank had a total of 98.54 lakh registered users for Internet Banking, 57.67 lakh for Mobile Banking, and 24.50 lakh for UPI, demonstrating the expanding digital customer base.
Your Bank had 2,154 POS terminals installed across various locations as of March 31,2023, enabling customers to make card-based payments conveniently. Additionally, 1,000 SelfService Passbook Printing Kiosks (SSPBPK) were deployed to facilitate customers access to their account information.
Your Bank operated a total of 3,752 ATMs, with 54.55% of them located in rural and semi-urban branches, emphasizing the banks commitment to providing banking services in remote areas. The average ATM uptime during the year was approximately 96.92%, ensuring reliable and uninterrupted cash withdrawal services. Your Bank had a debit card base of 2.83 crore as of March 31, 2023, enabling customers to access their funds conveniently.
In credit card operations, your Bank partnered with SBI Card to issue co-branded credit cards to its customers. By the end of the financial year, 2.40 lakh co-branded cards had been issued, offering customers additional payment options and benefits.
Looking ahead, your Bank has outlined several initiatives to enhance its digital banking services. These include the introduction of virtual cards for secure e-commerce transactions, Whatsapp Banking for non-financial transactions, improved bill payment functionality across mobile banking, UPI, and internet banking platforms, implementation of UPI Pay Now for fund transfers between India and Singapore, UPI123 feature implementation, UPI Lite for acquiring transactions, and live issuance of ICCW for cash withdrawals from the banks ATMs using UPI.
Furthermore, your Bank plans to deploy additional SelfService Passbook Printing Kiosks at branches, offer white label solutions for payment aggregator services to merchants and institutions through an integrated web portal, and continuously improve functionalities across mobile banking, UPI app, and internet banking platforms, ensuring a seamless and enhanced digital banking experience for its customers.
Information Technology
IT Infrastructure:
Central Bank of India has prioritized the establishment of a state-of-the-art IT infrastructure to support its operations and provide efficient customer service. Your Banks ISO-certified Data Centre and robust IT infrastructure ensure operational efficiency and prompt customer service delivery. Significant IT projects, such as Core Banking Solution, Trade Finance Solution, Treasury Solution, and Loan Lifecycle Management Solution, have been implemented as essential business enablers.
To ensure business continuity with zero data loss, your Bank has established a comprehensive Disaster Recovery Centre and a Near-Site Set up. Regular Disaster Recovery (DR) drills are conducted in line with your Banks internal policy and regulatory guidelines. Even during extreme situations such as natural calamities, your Banks advanced networking setup and constant monitoring have minimized branch isolations and network outages.
The SWIFT System has been revamped and upgraded to the latest version, equipped with additional features. Your Bank has recently launched revamped Internet Banking services for both retail and corporate customers, offering enhanced features and security controls. The RTGS/NEFT setup has also been upgraded to ensure 24x7 availability, following regulatory instructions.
Central Bank of India has successfully implemented various projects to comply with customer and employee service requirements, as well as regulatory obligations. These include Anti-Money Laundering, Application Supported by Blocked Amount (ASBA), Integrated Risk Management System (IRMS), Fraud Risk Management System (FRMS), Centralized e-TDS Management Solution, and Document Management System (DMS). Your Bank has also implemented TIN 2.0 for Direct Tax Collection and introduced Customer Feedback through SMS.
Your Bank actively participates in the governments financial inclusion initiatives, adhering to statutory guidelines while capturing Aadhaar data. Additionally, as the sponsor bank for two Regional Rural Banks (RRBs), Central Bank of India ensures that the RRBs benefit from technological advancements and core banking functionalities.
For comprehensive fund management and payment monitoring, your Bank has implemented the Digi Funds Management Solution. Furthermore, the existing Data Warehouse Solution is being upgraded to a best-in-class solution that can handle data growth and meet your Banks MIS/analytical requirements effectively.
Under its business strategy, Central Bank of India is undertaking a major initiative known as "Digital Transformation." This initiative aims to seamlessly transition traditional business models into digital ones through a Universal App that offers comprehensive products and services such as deposits, advances, payments, and wealth management. Your Bank is in the process of procuring a Digital Banking Platform, Digital Lending Platform, and revamping its customer care and insurance platforms to support these digital services. As an initial step, your Bank has introduced Customer on-boarding Journey through Video KYC, enhancing the onboarding experience for customers.
IT Governance
\Central Bank of India recognizes the importance of effective IT governance and has established dedicated committees to ensure proper oversight and governance of IT activities. The Board has formed IT Strategy and Risk Management Committees, which play a crucial role in ensuring that robust IT governance practices are in place. These committees oversee the implementation of IT
strategies, evaluate IT risks, and provide guidance on IT- related matters.
To support your Bank in making informed IT decisions, an IT Steering Committee has been constituted. This committee comprises top executives from various business verticals, bringing together diverse perspectives and expertise. The IT Steering Committee assists your Bank in identifying and implementing appropriate IT initiatives that align with your Banks objectives and business requirements.
The IT organizational structure of Central Bank of India is designed to meet the demands of its size, scale, and business activities. It encompasses key functional areas such as Technology and Development, IT Operations, IT Assurance, and Supply and Resource Management. Each functional vertical within the IT department is headed by experienced and trained senior officials who provide leadership and guidance.
The IT department is led by a top executive in the rank of General Manager, supported by Deputy General Managers and Assistant General Managers. This leadership team ensures effective management and execution of IT strategies, policies, and projects. They oversee the day-to-day operations of the IT department and drive the implementation of IT initiatives across the organization.
Information Security
Your Bank has taken all the necessary steps to protect its Information Systems and customer data from cyber threats. Continuous compliance of Regulatory Guidelines and certification standards such as ISO 27001 and ISO 22301. Initiatives are being taken on regular basis to enhance the cyber awareness among Employees/ Customers.
Leveraging Technologies - New initiatives taken during FY 2022-23
1) SMS Based Customer Feedback Mechanism implemented for Deposit, Withdrawal and Transfer.
2) Cheque Book issuance and activation through Mobile Banking, Internet Banking and SMS.
3) Positive Pay System
4) Direct Tax Collection (TIN 2.0)
5) Enterprise Fraud Risk Management Solution (EFRMS) has been implemented for Real Time Analysis and Blocking of suspicious transactions initiated through Alternate Channels such as ATM, Internet banking, Mobile Banking and UPI. It is implemented to prevent fraudulent transactions done through various delivery channels.
6) Implemented Centralised KYC Registry (CKYCR) for capturing and validating of KYC data of Customers in
CBS System as per guidelines of CERSAI.
7) Initiated Digital Customer On-boarding through Video KYC (online channel) as part of hassle-free customer on-boarding without visiting Branches.
8) In Cent Mobile, following customer service initiatives are taken,
o Option to generate Form 16 and Interest Certificate (E-certificate).
o Incorporation of Date & Time in Fund Transfer Receipt.
o De-Register and Loyalty rewards option
incorporated.
o Assamese, Bengali, and Punjabi languages added.
o Cent 555/ 999 Deposits included in Account
opening dropdown.
o On login to Cent Mobile App, one pop up is displayed, showing the Debit Card offers.
9) Tokenization of Cards - As per RBI guidelines, Merchants are not allowed to store Card Numbers of customers. Instead of Card No., they will be storing tokens (generated by Card Networks). Necessary changes for handling token-based transactions have been incorporated in ATM Switch. This is developed for ensuring confidentiality of Card details of customers. Tokenization have been completed for all the three Card Networks viz. RUPAY, VISA & MASTERCARD.
Digital Initiatives
Bank has initiated Digital Transformation Project (Cent NEO) and the ambitious plans covers following Digital Transformation Journey:
• Universal App (Cent NEO) - Various services shall be offered on Assets, Liabilities, Wealth Management, Market Place, Cards etc, through App and Web interfaces.
• Digital Lending Platform (DLP) - The DLP shall support lending in Straight Through Process (STP), Assisted and Semi-Assisted modes.
• Integrated Customer Care - Modern Customer Care for Customer Services, Grievance Handling, Marketing & Sales , among others, on variety of channels Call, Chat/Voice BoTs, IVR, WhatsApp , among others,
• Integrations Platform - Upgrading the middleware platform for seamless communication between internal and external systems. The components of this platform are Payment-hub, API Gateway, Middleware and Streaming.
• Collections Management - Unified collections
management system with Technology, Call Centre, and Feet on Street (FOS) services.
Audit and Inspection
Central Bank of India places immense importance on risk management and has established robust internal audit mechanisms to assess and mitigate risks across its branches and offices. Your Bank employs a Risk-Based Internal Audit (RBIA) approach, where internal auditors evaluate each branch based on a composite risk matrix and assign a risk rating accordingly. During the fiscal year 2022-23, a total of 4,376 branches were subjected to RBIA the ratings revealed that 2,698 branches were classified as Medium Risk, 1,633 branches as Low Risk, 43 branches as High Risk, and 2 branches as Very High Risk.
Management audits were conducted on 35 Regional Offices, 12 Zonal Offices, 17 Central Office Departments, 2 RRBs, and 5 Subsidiaries/Training Colleges during the same fiscal year. These audits ensure effective management practices and adherence to established policies and procedures.
Concurrent audits play a crucial role in monitoring and ensuring the accuracy and compliance of branch operations. As of March 31,2023, a total of 1,157 branches/offices were covered under concurrent audits by chartered accountants or bank officials. This includes General Branches, SSBs, CPACs, CO Departments, Currency Chests, AD Branches, Nodal Branches for government business, and High-Risk rated branches. Concurrent audits cover approximately 58.63% of your Banks total business and 70.47% of aggregate advances. Your Bank has engaged a diverse range of chartered accountant firms categorized by RBI as Category I, II, III, and IV to conduct these audits.
In addition to regular concurrent audits, your Bank appointed concurrent auditors at the Regional Office level to conduct transaction checks of internal/office accounts of branches not covered under regular concurrent audits for the fiscal year 2022-23. A total of 362 concurrent auditors were appointed, including chartered accountants and audit firms categorized by RBI.
To ensure the accuracy of income bookings, your Bank conducts an annual revenue checking exercise involving chartered accountants, internal auditors, and other officials. This exercise takes place from March 1st to March 10th every year.
Compliance audits are conducted to ensure adherence to regulatory and internal compliance requirements. During the fiscal year 2022-23, 755 branches underwent compliance audits, contributing to your Banks strict compliance culture.
Additionally, your Bank conducts periodic inspections and audits to assess compliance at branches, including KYC compliance audits.
Central Bank of India also complies with RBI directives by conducting periodic legal audits and re-verification of title deeds in eligible accounts. This ensures the integrity and legality of your Banks operations.
Planning, Development & Operations
Branch Expansion :
The details of branches opened/merged/closed during FY 2022-23 is as under:
| No | Category | Position as on 31.03.22 | Position as on 31.03.23 |
| 1 | Rural | 1604 | 1600 |
| 2 | Semi-Urban | 1330 | 1330 |
| 3 | Urban | 783 | 769 |
| 4 | Metro | 811 | 794 |
| TOTAL | 4528 | 4493 | |
Your Bank has implemented various initiatives to enhance customer convenience and improve service delivery. Here are the key initiatives:
Your Banks call centre provides both inbound and outbound call facilities to customers. It has been upgraded to offer 16 services through interactive voice response (IVR) to callers. In addition to the existing toll-free number (1800 22 1911), your Bank has introduced additional numbers (1800 202 1911 toll-free and 022 4190 3900 toll number) to provide alternative options in case of disruptions in telecom services.
An exclusive number (1800203 1911) is provided for pensioners and senior citizens. The call centre also offers services in 10 regional languages, apart from Hindi and English. Doorstep banking facilities are available to senior citizens, visually impaired individuals, and differently-abled customers through the call centre.
Customers can request debit freeze for their accounts or debit cards through the call centre on a 24/7 basis. Proactive outbound IVR blaster services are deployed in five languages to reach out to delinquent agriculture, retail, and MSME customers. BOT calling is used for reminder services for collection of payments from accounts with special mention accounts (SMA).
Your Bank provides services for fund transfers through IVR
to own and other accounts within the bank, as well as loan accounts. Pensioners are reminded to submit their annual life certificates through the call center, and your Bank accepts life certificates through V-KYC.
Your Bank has revamped its complaint management solution through its web portal, allowing customers to lodge complaints anytime, anywhere. Home delivery of cheque books and ATM cards has been implemented for customer convenience. Cheque books can be activated through SMS, mobile banking, or internet banking. Positive Pay has been introduced to prevent fraud by cloning or alterations, allowing customers to furnish certain basic details of their issued cheques. Positive Pay information is available through net banking, mobile banking, and the branch network.
Under the DSBS (Doorstep Banking Services) initiative in collaboration with PSB Alliance Pvt Ltd, customers located at 100 centers can avail of services at a nominal charge. Digital life certificates for pensioners can be booked through various channels, and a doorstep banking agent will collect the online life certificate using the Jeevan Pramaan App.
Customers can make nominations for their accounts through mobile banking, internet banking, or SMS channels. PPF accounts can be opened at any branch of choice or through internet banking or mobile banking. The Senior Citizen Saving Scheme can be opened through mobile banking or any branch. Online subscriptions for Sovereign Gold Bonds can be made through net banking. Tax collection under TIN 2.0 is available at all branches and through internet banking.
Home branch change for small saving schemes is now possible through CBS (Core Banking Solution), similar to deposit accounts. Customer onboarding through video KYC has been implemented, and re-KYC (Know Your Customer) can be done through mobile banking. Customers receive SMS notifications before and after their accounts become inoperative or dormant, and e-mandates are facilitated through Aadhaar-based authentication. Mandate registration for credit amounts in savings accounts from other banks is also available.
Rajbhasha
The Rajbhasha Department has achieved several notable accomplishments in the Financial Year 2022-23. These achievements include receiving Rajbhasha Awards from various offices such as Regional Implementation Offices, the
Home Ministry of the Government of India, NGOs, and Town Official Implementation Committees. The awards recognize the efforts and accomplishments of our offices in promoting the use of the official language and ensuring compliance with Rajbhasha policies.
• Awards Received from Regional Implementation Offices, Home Ministry, Govt. of India.
| Sl. | Name of the office | Award |
| 1. | Zonal Office, Patna | First |
| 2. | TOLIC (Bank) Bhopal (Working under our association) | First |
| 3. | TOLIC (Bank) Panji (Working under our association) | First |
| 4. | Regional Office, Sambalpur (For the F.Y 2021-22) | First |
| 5. | Regional Office, Sambalpur (For the FY 2020-21) | Second |
| 6. | Regional Office, Gwalior | Second |
• Awards: received from non-governmental
organizations
Our bank received the prestigious Best Nationalized Bank Ashirwad Rajbhasha Award from the Honorable Governor of Maharashtra, Mr. Bhagat Singh Koshyari. This award recognized our banks significant efforts in promoting the use of the official language Hindi. It was presented by the literary, cultural, and social organization Aashirwad.
Additionally, our bank was honored with the ‘Dushyant Samman for its excellent work in promoting Hindi as the official language. This recognition was bestowed by Paswan-e-Adab, a literary, cultural, and social organization based in Mumbai.
Furthermore, our General Manager (Rajbhasha), Mr. Smriti Ranjan Dash, received the prestigious Ashirwad Rajbhasha Gaurav Puraskar. This award was presented by Aashirwad in appreciation of Mr. Dashs valuable cooperation and contribution in promoting Hindi within our office.
• Narakas Award
During the financial year 2022-23, our various offices received the esteemed Narakas Awards from their respective Town Offfcial Implementation Committees. These awards recognized the outstanding efforts and achievements of our offices in promoting and implementing the official language in their respective locations.
| Sl. | Name of the office | Award |
| 1 | Regional Office, Jodhpur | First |
| 2 | Regional Office, Deoria | First |
| 3 | Regional Office, Bareilly | First |
| 4 | Anand Branch - Gandhi Nagar First Region | |
| 5 | Regional Office, Gwalior | First |
| 6 | Zonal Office, Patna | First |
| 7 | Regional Office, Ayodhya | First |
| 8 | Regional Office, Dhanbad | First |
| 9 | Regional Office. Akola | First |
| 10 | Zonal Office, Delhi | First |
| 11 | Regional Office, Muzaffarpur | First |
| 12 | Zonal Office Delhi>s e-magazine < Central Vani ‘ | Hindi Second |
| 13 | Regional Office Meeruts e-magazine ‘ ‘Centmangal ‘ | Hindi Second |
| 14 | Regional Office, Ranchi | Second |
| 15 | Regional Office, Thiruvananthapuram Second | |
| 16 | Regional Office, Kanpur | Second |
| 17 | Regional Office, Hyderabad | Second |
| 18 | Zonal Office, Chennai | Second |
| 19 | Zonal Office, Guwahati | Second |
| 20 | Badwani Branch | Second |
| 21 | Shalimar Branch | Second |
| 22 | Regional Office, Bhubaneswar | Third |
| 23 | Regional Office, Surat | Third |
| 24 | Shivpuri Branch (Bhopal Zone) | Third |
| 25 | Regional Office, Ludhiana | Third |
| 26 | Regional Office, Aurangabad | Third |
| 27 | Zonal Office, Pune | Third |
| 28 | Regional Office, Coimbatore | Third |
| 29 | Nagercoil Branch | Third |
| 30 | Reginal Office, Hubli | Third |
| 31 | Regional Office, Jamshedpur | Third |
| 32. | Regional Office, Kolkata | Consolation |
| 33. | Regional Office, Jaipur | Consolation |
| 34. | Khammam Branch (Warangal Zone) | Consolation |
| 35. | Dewas Branch | Consolation |
| 36. | Regional Office, Sambalpur | Consolation |
| 37. | Burnpur Branch | U n n a y a k Award |
During the financial year 2022-23, the Rajbhasha Department of our bank achieved several significant milestones and organized various events to promote the use of the official language. Here are the key highlights:
• Rajbhasha Sammelan: Our bank organized the ‘Akhil Bhartiye Rajbhasha Sammelan in Delhi, where distinguished guests such as Ms. Anshuli Arya, IAS, Secretary (OL), and Mr. B. L Meena, Director (OL), graced the event. The conference included discussions on various subjects, along with a special lecture on "Kanthastha."
• Rajbhasha Seminars: A Rajbhasha Seminar was organized by the Regional Office Siliguri in the presence of Mr. Nirmal Kumar Dubey, Assistant Director, Regional Implementation Office (East Zone).
• Rajbhasha Exhibitions: Our bank hosted the All India Rajbhasha Exhibition in Delhi, where four pavilions representing linguistic regions A, B, and C were set up. Additionally, our various offices organized 312 exhibitions, showcasing various aspects of Hindi language and culture.
• Publication of E-books: Our bank published 12 E-books covering diverse banking topics, including customer complaints, NPA management, digital banking, and advertising. These E-books aim to provide valuable insights and knowledge to our stakeholders.
• E-Learning Platform: The ‘Cent Saral e-learning books, available on our banks website, offer educational material in 10 major Indian languages, including Bengali, Gujarati, Kannada, Malayalam, Marathi, Punjabi, Tamil, Telugu, and Odia.
• All India Hindi Competitions: To encourage the implementation of Rajbhasha, various Hindi competitions were organized at the national level, including essay competitions, centmail competitions, and Hindi geet gayan (singing) competitions.
• Recognition for Excellent Performance: Five zones and 12 Rajbhasha Officers across the country were awarded for their outstanding performance in the implementation of Rajbhasha.
• Publication of Bilingual and Hindi In-house Magazines: Our bank regularly publishes the bilingual house magazine ‘Centralite and the quarterly Hindi in-house magazine ‘Central Manthan. Additionally, our Zonal Offices and Regional Offices publish e-magazines at regular intervals.
• Special Events: Several events were organized to promote Hindi and celebrate notable occasions. These events included a programme of Lata Mangeshkars songs by the staff of Thiruvananthapuram region, an online Hindi competition related to Dr. Ambedkars birth anniversary, World Hindi Day celebrations, and various competitions organized by our offices.
• Hindi Posters: Our various offices released 225 Hindi posters containing messages, sayings, quotations, and guidelines to promote the use of Hindi language.
• Convenership of NARAKAS: Our bank serves as the convener for 11 NARAKAS (Town Official Language Implementation Committees) located in cities such as Akola, Bhopal, Deoria, Golaghat, Gwalior, Lakhimpur, Madurai, Panaji, Raipur, Thane, and Udalgudi.
Marketing
The marketing department of our Bank has demonstrated exceptional performance and achieved remarkable milestones throughout the fiscal year. With a strategic focus on the Retail, MSME, and CASA segments, the department has successfully driven customer engagement and contributed to the Banks growth and market presence. To enhance lead management and monitoring, a state-of- the-art Marketing Portal was developed, providing Marketing Officers, Branch Managers, and Admin offices with robust tools and capabilities. This user-friendly platform facilitated efficient tracking and optimization of leads, ensuring no opportunity was missed.
The efforts of our dedicated marketing team yielded impressive results, as they mobilized an impressive total of 11,690 leads, amounting to a substantial 6,193 crore during the fiscal year 2022-23. This exceptional achievement is a testament to their unwavering commitment and expertise in identifying and converting prospects into valuable business relationships. In fact, out of the total leads generated, an impressive 8,800 were successfully converted, resulting in a significant business value of 3,447 crore.
Furthermore, the introduction of the Missed Call Facility proved to be a valuable addition to our lead generation initiatives. Since its launch in July 2021, this service has garnered remarkable response, with 859 leads forwarded to branches. These promising leads amounted to 292 crore, and through meticulous follow-up and nurturing, 545 of them were successfully converted into tangible business, totaling 226 crore. Embracing the power of digital marketing, our marketing team launched impactful campaigns that resonated with our target audience. By leveraging various digital channels, they effectively reached and engaged prospective customers, further expanding our market reach and opening doors to new business opportunities.
Continuous learning and development were prioritized within the marketing department. Online training sessions were conducted to equip field functionaries, especially Marketing Officers, with the latest tools, techniques, and strategies. This investment in their professional growth not only enhanced their capabilities but also ensured they were well-equipped to meet the evolving needs of our customers and the market.
Acknowledging outstanding performance, your Bank celebrated the top 10 quarterly performers within the marketing team. Letters of Appreciation were issued to recognize their
exceptional contributions, and monetary incentives were provided to reward their hard work and dedication. Accurate and timely performance monitoring played a crucial role in guiding the marketing teams efforts. Through informative slides and comprehensive data on missed calls, the team closely monitored daily performance and shared key metrics with Regional Offices and Marketing Officers. This real-time information facilitated prompt decision-making and enabled targeted actions to optimize performance.
Looking ahead, your Bank has set ambitious goals for the next fiscal year. A target of 4,500 crore has been established, building upon the remarkable achievements of the previous year. The marketing department is committed to surpassing this milestone and continuing to play a pivotal role in driving the Banks success and market leadership.
Digital Marketing Department
In todays fast-paced and highly competitive business landscape, staying ahead of the competition is paramount. One key strategy that has proven to be a game-changer is digital marketing. With the ability to reach a vast audience and leverage the power of the internet, businesses can connect with customers such as never before. Unlike traditional advertising methods, digital marketing offers a cost-effective approach to reaching and engaging potential customers. The expenses associated with print ads, TV commercials, or billboards can be significantly higher compared to the more streamlined and targeted digital marketing campaigns. This cost efficiency allows businesses, regardless of their size, to allocate their marketing budget more effectively and achieve better ROI.
Digital marketing encompasses a range of strategies and tactics that are executed through electronic devices or the internet. It empowers businesses to connect with their target audience in many ways, including search engine optimization (SEO), social media marketing, email marketing, content marketing, and paid advertising, among others. By utilizing these digital channels, businesses can establish a strong online presence, engage with their customers, and drive conversions. One of the core advantages of digital marketing is its ability to track and measure the effectiveness of campaigns in real-time. Through analytics and data- driven insights, businesses can gain valuable information about their target audiences preferences, behaviours, and engagement levels. This data-driven approach allows for continuous optimization and improvement, ensuring that marketing efforts are aligned with customer expectations and business goals.
There are various methods under the spectrum of digital marketing, which are as follows-
• Search Engine Optimization (SEO)
• Search Engine Marketing (SEM) & Pay-Per-Click (PPC)
• Social Media Marketing (SMM)
• Blogging
• Video Marketing
• Email Marketing
• Influencer Marketing , among others,
Digital Marketing and how it impacts the way businesses operate
• Customer Connect - Digital platforms has enabled easy and instant communication between the brand and the audience. It also helps to connect with the global audience.
• Content Distribution - Every day organization can share huge content with the audience via social media, emails, applications, newsletters and so on. This way organization can easily spread their message to a large audience.
• Customer Information - With the help of the technology, organization can track the data of the customers. The analysis of the data can help us to know customer likes and preferences. Based on which, we can make vital business decisions.
• Encourage Innovations - Digital marketing offers a platform to reach customers in an innovative way. When there is a stiff competition in the market, having an innovative approach helps brands to stand out.
Our Bank has established a strong foothold in social media the biggest form of Digital Marketing today with presence in all major platforms namely Facebook, Twitter, Instagram, LinkedIn, and YouTube. Moving forward, Bank aspires to give an impetus to its digital marketing efforts to develop a brand perception from what it is today in its endeavour to become the preferred choice of new age tech savvy millennials and Gen-Z customers. In the FY 2022-23 our Bank has successfully executed Digital Marketing campaigns on Retail schemes, MSME schemes, Missed Call Facility, Online Savings account on Social Media platforms & Google Search Engine.
The following campaigns were executed digitally on various Social Media platforms and Google Search Engine:
• Housing Loan (Cent Home Loan, Cent Grih Laxmi)
• Education Loan (Cent Vidyarthi, Cent Vidyarthi Loans for IIMs & other reputed management institutions)
• Vehicle Loan
• Missed Call Facility for Loans on Facebook & Instagram
• MSME Campaigns (Cent Sanjeevani, Cent Vehicle Business Loan, Cent GST Loan, Cent Business Loan, Cent Textile Loan, Jewellery Manufacturer Loan)
• Online Savings Account
Total number of impressions generated in these campaigns were 9,13,67,733, total number of clicks were 6,78,856 with the total number of Leads generated were 2,47,721.
Social Media
Social Media has become the most prominent form of Digital Marketing today. Our Banks social media platforms were started with an idea to make our presence in the world of digital media and to promote our products and services on these platforms. It has helped our Bank to create an awareness among the existing and potential customers. We have successfully made our presence on platforms such as Facebook, Twitter, Instagram, LinkedIn, and YouTube. With the help of social media, we are in constant process of helping and solving queries and complaints of existing and potential customers with a tool called ORM (Online Reputational Management).
Below are the key highlights of Social Media Activities:
• Creatives are being made and posted daily by the department and on the ideas received from peer departments.
• The Department conducted various campaigns of DFS, NPCI, Finance Ministry, RBI, and other Govt Institutions.
• Various Brand conversation campaigns were executed to make the customer aware of the features of our products/schemes.
• Various campaigns were coordinated to promote our ADC (Alternate Delivery Channels).
• Information on various offers and schemes were disseminated through our social media platforms for creating brand awareness and to tap the potential customers.
• Posts on various activities under Azadi Ka Amrit Mahotsav, DFS and other Government Departments were created and shared on our social media platforms with AKAM hashtags.
• Participated in the Nationwide Intensive Awareness campaign & #RBIKehtaHai campaign of Reserve Bank of India.
• Participated in the Special Campaign 2.0 - a cleanliness drive by DFS.
• For customer service excellence and for immediate redressal of complaints a complaint redressal cell was set up in the month of May 2021.
• The comments/queries/complaints in our social handles are being moderated with the help of our Online Reputation Management (ORM) tool and appropriate replies are being posted in the social media.
• On an average we receive usually 200 to 250 complaints on day-to-day basis which are resolved on the same day.
• In the financial year 2022-23, we received 310 appreciations from our customers whose concerns were addressed.
• The complaints pertaining to individual departments are being taken up with them for an early resolution.
Followers/Likes on Social Media Platforms as on 31/03/2023: .
2,02,406 Followerso
162350 Followers
8652 Followers
12517 Followers
22000 Followers
The Corporate Communications Department is responsible for overseeing your Banks initiatives in branding, product marketing, and corporate communications. The Department has made significant efforts to strengthen the branding process across the country and has established an effective framework for initiating branding activities.
In addition to traditional branding methods such as traffic barricades, no parking boards, police booths, wall paintings, buses, trains, local cable channels, and FM radio, the department has also ventured into digital marketing to promote various products and services through apps and websites.
The s team has conducted various major activities and sponsorship programs to promote the Banks range of products and services, including home loans, vehicle loans, education loans, agriculture loans, MSME loans, and digital products. Different media channels such as print, electronic/ digital/social media, outdoor media, and ATMs have been utilized for branding and promoting the Banks offerings.
The departments focus is on constantly redefining and reinventing all branding efforts to ensure relevance and act as a catalyst for change, positioning your Bank as a dynamic and trusted brand. Throughout the year, numerous publicity activities were carried out nationwide to maximize visibility and create awareness of the Banks products and services.
By engaging in strategic branding and publicity initiatives, the s Department aims to strengthen the Banks market position, enhance its brand image, and build trust among its customers.
The Banks marketing efforts encompass a wide range of sponsorships, advertising, and promotional activities, including:
Sponsorships:
• Sponsorship of various musical programs and cultural events
• Sponsorship of college festivals and sports tournaments
• Sponsorship of trade fairs and conferences
• Platinum sponsorship of the Subroto Cup football tournament
• Sponsorship of cancer screening and global music festivals
Advertising and Media:
• Advertising on prominent television channels and radio stations
• Print advertisements in newspapers and magazines
• Digital marketing campaigns on social media platforms
• Advertising in specialized publications and statistical data reports
• Promotion through jingles and banners at key locations Community Engagement:
• Social awareness campaigns through street plays and murals
• Support for social causes and initiatives
• Celebrations of momentous events and anniversaries
Public Relation The Public Relation Department played a crucial role in maintaining effective communication and managing the Banks image and reputation. Through these initiatives, the Public Relation Department played a vital role in fostering transparent communication, strengthening stakeholder relationships, and upholding the Banks reputation and credibility in the industry. The department executed the following key activities:
Press Releases and Media Engagement: The department regularly issued press releases, ensuring that important updates and announcements from various departments were effectively communicated to the media and the public. It facilitated press meets and analyst meets during noteworthy events, such as the announcement of quarterly financial results, to provide insights and clarify queries.
Media Partnerships: To expand the reach of the Banks messages, the Public Relation Department established
partnerships and licensing agreements with news channels, news agencies, and other media platforms. This enabled your Bank to disseminate information to a broader audience and enhance its visibility in the media landscape.
Corporate Social Responsibility
At our bank, Corporate Social Responsibility (CSR) is an integral part of our business philosophy. We believe in contributing to the economic development and improving the well-being of not only our workforce and their families but also the broader community and society. We are committed to making a positive impact through our CSR initiatives, focusing on various areas of social welfare.
Our CSR efforts primarily involve collaborating with trusted organizations and trusts dedicated to serving the underprivileged and marginalized sections of society. Through these partnerships, we channel our resources towards initiatives that promote education, healthcare, disaster relief, and overall social welfare.
We understand the importance of empowering individuals and communities to break the cycle of poverty and create a sustainable future. By supporting education programs, we aim to provide opportunities for underprivileged children to access quality education and build a brighter future. Additionally, we contribute to healthcare initiatives to improve the well-being and access to medical facilities for those in need.
In times of natural calamities, we extend our support to provide relief and assistance to affected communities, helping them recover and rebuild their lives. Furthermore, we are committed to addressing various social issues and contributing to the overall welfare of society through our CSR activities.
Through our CSR initiatives, we strive to make a meaningful difference, aligning our efforts with the needs and aspirations of the communities we serve. We remain dedicated to our responsibility of giving back to society and creating a positive impact on the lives of people in need.
Vigilance
During the Vigilance Awareness Week 2022, our bank diligently observed the directives received from the Central Vigilance Commission (CVC). The theme for this years campaign was "Corruption-free India for a developed Nation." The week-long observance took place from October 31,2022, to November 6, 2022.
The activities and initiatives undertaken during the Vigilance Awareness Week were focused on promoting integrity, transparency, and preventive measures. The following highlights summarize the various exercises and activities
conducted nationwide:
• Workshops and Sensitization Programmes: A total of 244 workshops and sensitization programmes were organized for employees, relatives, and stakeholders. These sessions aimed to educate participants about organizational policies, procedures, and preventive measures.
• Competitions and Debates: Debates, elocution
competitions, and essay competitions were held at 17 different centers for school and college students. Additionally, a Pan India-level quiz competition saw the participation of 863 staff members.
• Gram Sabhas: A remarkable 2,339 Gram Sabhas were conducted across the country in rural and semi-urban areas. These gatherings aimed to raise awareness among the general public about the perils of corruption and the importance of transparency and integrity in public governance.
• Engaging Activities: Various engaging activities were organized, including 50 walkathons, 2 cricket matches, a Nukkad Natak (street play), bike rally, exhibition, and human chain activity. These events were held at different locations associated with our bank.
• Video Competition for Children: A video competition for the children of staff members took place across all centers, attracting the participation of 379 enthusiastic children.
• Release of "CENT VIGIL’ Magazine: During the event at the Central Office in Mumbai, an e-journal called "CENT VIGIL" was released by our MD & CEO, Shri M. V. Rao. This journal featured articles on Vigilance Awareness Week-related subjects, photos, and media clips of events held nationwide.
• Town Hall Meetings: Town Hall meetings were arranged at prominent locations, inviting customers, staff members, and special invitees from the RBI, CBI, Police Department, as well as senior IAS and IPS officers. These meetings provided a platform for addressing the audience on vigilance awareness.
Furthermore, several systemic improvements were implemented during the year. These included the automation of the Surprise Inspection Exercise through the online SIR (Surprise Inspection Report) portal, installation of CCTV surveillance in Branch Managers cabins to enhance monitoring, updates to alerts in the Offsite Monitoring process, and the creation of awareness among field functionaries regarding the e-Procurement process.
Human Capital Management
As of the end of March 2023, the staff strength of the Bank increased to 30,770 compared to 30,289 in the previous year.
- Officers: The number of officers at the end of March 2023 was 16,521, showing a slight increase compared to the previous years count of 16,248.
- Clerks: The number of clerks stood at 9,060, reflecting an increase from the previous years count of 8,415.
- Sub-staff: The sub-staff category consisted of 5,189 employees, which decreased slightly compared to the previous years count of 5,626.
| Category | March-19 March-20 March-21 | March-22March- 23 | |||
| Officers | 16686 | 16563 | 16565 | 16248 | 16521 |
| Clerks | 11766 | 10356 | 9761 | 8415 | 9060 |
| Sub-staff | 7041 | 6562 | 6009 | 5626 | 5189 |
| Grand | 35675 | 33481 | 32335 | 30289 | 30770 |
| Total | |||||
Recruitment and Promotion
During the year 2022-23, the Bank conducted new recruitments to enhance its workforce. The following are the details of the new recruits:
| - Specialist Officers: | The Bank hired 547 Specialist Officers. | new |
| - Probationary Officers: | A total of 527 Probationary Officers were recruited. | |
| - Appointment on Compassionate Grounds: | Additionally, the Bank appointed 85 Sub-staff and 137 Clerks on compassionate grounds, taking into consideration their personal circumstances. | |
In terms of promotions, the Bank conducted a comprehensive promotion process across all scales and disciplines during the year. This included inter-scale and inter-cadre promotions, enabling employees and officers to progress to higher cadres and scales. The promotion process resulted in 795 clerks being promoted to Scale-I officers and 2,779 officers being elevated to higher grades and scales. The Bank also considered transfer requests from 724 officers on a pan-India basis.
To meet the staffing requirements for the financial year 2022-23, the Bank initiated various recruitment processes. These include placing an indent for the recruitment of 2,100 Probationary Officers, 1,000 Clerical staff, and 358
Specialist Officers. In addition, the Bank began the lateral recruitment process for 50 Chief Managers and 200 Senior Managers in the Mainstream category. This initiative aims to bring in experienced professionals to fill key positions within the organization.
Furthermore, the Bank initiated recruitment processes for 136 Specialist Officers and 11 Mainstream Officers on a regular basis for the CENT-NEO Project, which is an important project the Bank is undertaking.
To support skill development and comply with the provisions of the Apprenticeship Act, 1961, and the Banks approved apprenticeship policy, the Bank initiated the engagement of 5,000 apprentices pan-India. This initiative aims to provide training and opportunities for young individuals to gain practical experience in the banking sector.
Employee Benefits
Under the category of Employee Benefits, the Bank has implemented various schemes to ensure the well-being and satisfaction of its staff. Here is a summary of the key initiatives:
• Your Bank has prioritized the well-being of its employees by providing comprehensive medical facilities and insurance coverage. Medical facilities, including salaries for doctors and the cost of medicines, are available at Zonal Headquarters. Your Bank has renewed the Group Medical Insurance coverage for employees, along with the option of a Super Top-up facility. To address major ailment expenses, your Bank has implemented the Corporate Buffer scheme under the medical insurance program. Additionally, the Retirees Group Health Insurance Policy has been renewed, ensuring continued coverage for retired employees.
• In terms of financial assistance and incentives, your Bank has taken various measures to support its employees. The relief amount for funeral expenses and ex gratia payments to the families of deceased employees has been enhanced. Canteen subsidy facilities for serving staff members have been increased, providing greater support for their daily needs. Financial assistance is available for employees who have children with special needs or disabilities. Your Bank also rewards employees whose children pass their 10th or 12th standard examinations with distinction. Furthermore, additional financial assistance is provided to pre-1986 retirees and their family pensioners. Incentives are also offered through performance-linked incentives (PLI) for all eligible employees, and bonus payments are made in accordance with the Payment of Bonus Act, 1965.
• Employee welfare and recreational activities are important aspects of the banks initiatives. The Holiday Homes and Transit Homes have been upgraded,
ensuring improved quality of stay for employees. Your Bank has reintroduced the health check-up facility, allowing employees to undergo health check-ups at defined intervals. Funds have been allocated for conducting sports, cultural, and recreational activities for employees, promoting a healthy work-life balance. As a gesture of goodwill and appreciation, your Bank distributes sweets or dry-fruit packets to employees on festive occasions.
• Transfer policies and discussions with unions play a crucial role in maintaining a harmonious work environment. Joint discussions with unions have taken place regarding career paths, promotion policies, and transfer norms for officers. Your Bank has introduced a rent reimbursement facility for clerical staff and enhanced rent ceilings for officers to alleviate the financial burdens of securing suitable accommodation. Meetings with unions have also been held to finalize revised transfer norms and promotion policies for award staff employees.
• In response to natural disasters, your Bank has provided support to its employees affected by floods in the northeastern regions. Through the Flood Relief Loan program, employees whose houses and household belongings have been damaged by floods receive financial assistance amounting to one months gross salary, with a maximum limit of 1,00,000.
Overall, the banks commitment to employee welfare and engagement is evident through its provision of medical facilities, insurance coverage, financial assistance, incentives, recreational activities, and support during challenging times. These initiatives reflect the banks dedication to creating a conducive and supportive work environment for its employees.
Employee Development
The Bank has implemented various programs and initiatives to enhance performance management, learning and development, capacity building, and employee engagement. These comprehensive initiatives and programs reflect the banks commitment to performance management, continuous learning and development, capacity building, employee engagement, and fostering a culture of growth and excellence within the organization. Here is a summary of these initiatives:
• Your Bank has implemented a Performance Management System (PMS) called the Central RISE Project for officers and clerks. This project includes various components such as role allocation, scorecards, and review utility in the PMS tool. Additionally, target setting has been completed for business metrics based on market growth data, and a manpower planning tool has been developed for the fiscal year 2023-24. Furthermore, a job family survey has been conducted specifically for officers.
• In terms of learning and development, your Bank has conducted training programs through its Officers Training Colleges and CLDs (Centers for Learning and Development), covering a wide range of topics and job families. E-learning modules have been provided, offering a diverse selection of courses for employees. Moreover, your Bank has introduced video-based learning, where recorded training classes are accessible through the Cent Swadhyay App. The capacity utilization of training colleges and CLDs has reached an impressive 114.43%. As for staff training, 100% of officers and 71.39% of award staff have undergone training.
• Special training initiatives have been undertaken by your Bank to enhance leadership skills and professional development. These initiatives include programs conducted by reputable organizations such as McKinsey & Company, FSIB, IBA, IIM-A, IIM Indore, XLRI, ASCI, IIBF, and JBIMS. There has also been a focus on digital transformation training for IT officers and leadership training for women SMs (Senior Managers) and managers. Additionally, external training programs have been conducted in collaboration with institutions such as IIM, ASCI, NIBM, CAB, FEDAI, IIBF, CORDEX, SHRM, and FIMMDA.
• To further strengthen capacity building, your Bank has provided a provision for employees to choose their certifications, allowing them to pursue up to five certifications worth up to 60,000 in a fiscal year. Regional heads have been identified for the Advanced Management Program for Senior Bankers, conducted by NIBM (National Institute of Bank Management) and Kent Business School, U.K. Furthermore, certification exams have been conducted for auditors and CPAC (Credit Policy and Audit Cell) officers. Your Bank has also disseminated information through leaflets called "Information on the Run," which serve as a ready reckoner for employees.
• To enhance leadership skills and professional growth, your Bank has initiated a one-on-one executive coaching programme for regional heads and zonal heads, with sessions planned over a period of 6-9 months.
• Employee engagement and HRD (Human Resource Development) audit surveys have been conducted to evaluate the impact of HCM (Human Capital Management) policies and practices. These surveys have covered parameters such as HRD culture, employee engagement, performance management, learning and development, career development, and employee satisfaction. The results of these surveys will help identify areas of improvement and leverage strengths within the organization.
• A mentorship programme has been implemented for Scale VII and VI officers to facilitate knowledge transfer and continuous growth. Through this program, experienced officers mentor their colleagues, supporting their goals and skill development through one-on-one conversations and other learning activities.
• Your Bank has also introduced an internship policy approved by the Board of Directors, providing practical knowledge and stipend opportunities to candidates. Interns gain an overview of the banking industry and acquire practical experience in specific departments aligned with their educational specialization and preference.
Industrial Relations
Throughout the year, the industrial relations within your Bank remained harmonious and cooperative, fostering a positive and productive work environment.
Crisis Management Plan and Committee Formation:
To ensure preparedness for crisis situations, a Crisis Management Plan (CMP) was adopted by the bank. This plan, formulated by a working group consisting of representatives from public and private sector banks, outlines strategies for effectively managing industry-wide strikes lasting more than three days. As part of the CMP implementation, a Crisis Management Monitoring Committee comprising four General Managers was established at the Central Office.
Nodal Officers and Guidelines: To assess the impact of strikes, implement the Crisis Management framework, issue operational guidelines, establish a robust public information system, and coordinate with local authorities and police, your Bank appointed Assistant General Managers (Operations) at Zonal offices and Chief Managers (Operation) at Regional Offices as Nodal Officers. These Nodal Officers work under the guidance of the Crisis Management Monitoring Committee at the Central Office. Their role is to analyze the situation in their respective Zones/Regions, ensure the effective execution of the Crisis Management Plan, and minimize the impact of strikes on banking services.
Appointment of Nodal Officers: In addition to the Nodal Officers at the Zonal and Regional levels, dedicated Nodal Officers were appointed to coordinate crisis management efforts. These officers play a crucial role in monitoring and reporting strike-related developments and ensuring the smooth functioning of alternate delivery channels during crises. The appointment of Nodal Officers at various levels strengthens the banks crisis management capabilities and reinforces its commitment to providing uninterrupted banking services even during challenging situations.
Staff Administration
Armed Forces Flag Day Fund: In a display of solidarity and commitment to the nation, Centralites contributed 3.90 Lacs to the Armed Forces Flag Day Fund (AFFDF). This contribution aims to support the welfare of ex-servicemen and war widows, demonstrating our concern for their wellbeing.
Compassionate Appointment and Ex-gratia Payment: Your Bank made payments of ex-gratia in lieu of compassionate appointments, providing financial assistance to deserving individuals. A total of 12 cases were settled, with an amount of 70,30,041/- disbursed.
Compassionate Appointment on Compassionate Grounds: Your Bank also facilitated compassionate appointments on compassionate grounds, recognizing the need to support individuals during challenging circumstances. A total of 137 clerks and 85 sub-staff members were appointed through this compassionate appointment process, totaling 222 appointments in FY 2023.
Prevention of Sexual Harassment (POSH) of Women at Workplace: Your Bank strictly prohibits sexual harassment in the workplace and has implemented the guidelines outlined in "The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013." To ensure a safe and respectful work environment, internal complaint committees have been established at all administrative offices.
Position of Complaints related to Sexual Harassment:
As of March 31, 2023, your Bank received a total of 11 complaints under the Sexual Harassment of Women (Prevention, Prohibition, and Redressal) Act, 2013. Out of these, 10 cases were successfully disposed of during the year, leaving one case pending at the end of the year. This pending case was subsequently resolved on April 20, 2023, ensuring appropriate action and resolution. Your Bank remains committed to addressing and redressing any instances of sexual harassment promptly and effectively.
Implementation of Reservation Policy
Your Bank diligently adheres to the Reservation Policy prescribed by the Government of India for SCs/STs/OBCs/ EWSs/PWDs. The workforce of your Bank reflects the representation of SCs, STs, OBCs, and differently-abled individuals across all cadres. Your Bank has also implemented the reservation applicable to "Economically Weaker Sections" in direct recruitment since February 1,2019, in line with the guidelines set by the government.
The SC/ST Cell within your Bank takes the responsibility to implement, monitor, and evaluate the reservation policy. This cell plans and executes measures to ensure the effective implementation of government policies and programs. The
SC/ST Cell at the Central Office, under the Chief Liaison Officer, handles the grievances of SC/ST/OBC employees. Your Bank maintains reservation rosters as per government guidelines, which are also uploaded on the banks website. Periodical meetings are conducted with welfare associations and federations.
To oversee the regional level issues of SC employees and monitor the implementation of the reservation policy, Dr. Anju Bala, Honble Member of the National Commission for Scheduled Castes, visited the regional offices at Chandigarh and Lucknow. A similar visit was made by Shri Vijay Sampla, Honble Chairman of the National Commission for Scheduled Castes, and other members, who discussed and monitored the implementation of the reservation policy at the banks central office. The liaison officers of the Department of Financial Services (DFS) verified the reservation rosters for the years 2020 and 2021, which were then uploaded on the banks website. An amount of 7 lakhs was allotted to the Welfare Association/Federation to celebrate the Birth Anniversary of Dr. B. R. Ambedkar.
As of March 31, 2023, the representation of SC/ST/OBC employees in your Bank is as follows:
| SC | ST | OBC | |
| Officers | 3042 | 1482 | 4972 |
| Clerical | 1711 | 870 | 2404 |
| Sub-Staff | 1769 | 474 | 1399 |
It is important to note that the employees recruited on the basis of their own merit are also included in these numbers. Additionally, during the year, your Bank made new recruitments as follows:
| SC | ST | OBC | |
| Officers | 552 | 299 | 804 |
During the year, Pre-promotion training was also conductec for employees as follows:
| SC | ST | OBC | |
| Officers | 513 | 153 | 760 |
Implementation of IFRS Converged Indian Accounting Standards (Ind AS)
In a press release issued by the Reserve Bank of India (RBI) on March 22, 2019 (RBI/2018-19/146 DBR.BPBC. No.29/21.07.001/2018-19), it was announced that the legislative amendments recommended by RBI were being considered by the Government of India. Consequently, RBI decided to defer the implementation of Indian Accounting Standards (Ind AS) in banks until further notice. However, in compliance with RBIs requirements, our bank continues
to submit Proforma Ind AS Financials to RBI on a half-yearly basis. To facilitate the implementation of Ind AS in the future, your Bank has engaged the services of an Ind AS consultant and established a dedicated Core Ind AS Team. This team is currently involved in the analysis of the necessary changes to our existing IT systems to ensure a seamless transition to Ind AS. While the implementation of Ind AS in banks has been deferred, we remain committed to preparing for its eventual adoption and complying with the regulatory requirements set by RBI. We will continue to monitor the updates and directives from RBI and the Government of India regarding the implementation of Ind AS in banks.
Subsidiaries and Joint Ventures
Cent Bank Home Finance Limited
Cent Bank Home Finance Limited has shown impressive performance in the financial year 2022-23. The companys Assets Under Management (AUM) stood at 1,415.50 Crores, reflecting a substantial growth of 22.07% compared to the previous year. This growth is a testament to the companys successful lending activities and increasing customer base.
In terms of profitability, Cent Bank Home Finance recorded significant improvements. The operating profit for FY23 increased to 41.88 Crores, indicating a growth of 16.98% compared to the previous year. The net profit after tax also saw a remarkable surge, reaching 26.76 Crores, a growth of 33.07%.
The company achieved noteworthy milestones in its lending operations. Sanctions witnessed a remarkable growth of 104%, amounting to 553.15 Crores, compared to 271.07 Crores in the previous year. Disbursements also experienced a significant surge, reaching 503.33 Crores, representing a growth of 103%. These figures highlight the successful implementation of the companys lending strategies and its ability to meet the financial needs of its customers.
Cent Bank Home Finance demonstrated a strong focus on asset quality. The gross non-performing assets (NPA) ratio stood at 3.56%, a notable improvement from 5.09% in the previous year. Moreover, the net NPA ratio improved to 2.53% from 2.63% in the previous year. These improvements signify the companys effective risk management practices and its commitment to maintaining a healthy loan portfolio.
The companys capital adequacy position remains robust, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 20.84%, exceeding the regulatory requirement of 15%. This solid capital base ensures the companys ability to sustain its operations and support future growth initiatives.
Cent Bank Home Finance diversified its business by entering the non-life insurance sector through a partnership with Bajaj Allianz. This strategic move enabled the company to earn 8.43 Lakhs in commission income, adding an additional revenue stream to its operations.
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ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.