2022-23
The Board of Directors have pleasure in presenting the Annual
Report together with Audited Balance Sheet and Profit & Loss
Account of the Bank for the year ended 31st March, 2023.
Global Business Performance
The global economy remained volatile in FY 2022-23. It has been a challenging year for the global economy in general and the banking industry in specific. In addition to COVID-
19s lingering impact, the world witnessed multi-decade high level of inflation rates across countries due to supply chain disruptions and elevated energy prices following Russias invasion of Ukraine.
To combat this situation, Central Banks across the world continued to withdraw their accommodative stance in a calibrated manner which led to tightening of liquidity across global markets and an increase in interest rates. This posed a downside risk to global economic growth prospects due to contraction in consumption and output. More recently, the turmoil of a few banks in US and Europe has resulted vulnerabilities in the banking sector and concerns about global financial stability and systemic risk.
The International Monetary Fund (IMF) predicts the global economy will grow by 2.8% this year and 3% in 2024. Emerging and developing economies to grow 3.9% in 2023 from 4% in 2022, with major contributions from India and
China.
Indian economy remained resilient amidst these uncertainties on account of strong economic fundamentals and robust balance sheets of the corporate sector and banks enabled a rebound in credit demand, which was also facilitated by a large increase in capex by the centre. Indias GDP growth accelerated to 6.1% in the January to March 2023 quarter from an upwardly revised 4.5% growth in previous quarter. For the full financial year, the economy growth was reported at 7.2% higher than the earlier Second
Advance Estimate of 7%. In the previous financial year, India had seen 9.1% GDP growth. The surge is primarily driven by improved performance in agriculture, manufacturing, mining, and construction sectors. There was a broad-based improvement in growth across sectors. The strength in domestic demand supported the growth amid the global slowdown The Reserve Bank of India has projected real GDP growth of India for 2023-24 at 6.5 % with Q1:2023-24 at 7.8%; Q2 at 6.2 %; Q3 at 6.1 %; and Q4 at 5.9 %; with risks evenly balanced.
Financial Performance
Banks global Business stood at Rs.4,49,892 Crores as of 31st March 2023 as compared to Rs.4,17,960 Crores as of 31st March 2022. Deposits and Advances stood at Rs.2,60,883
Crores and Rs.1,89,009 Crores as of 31st March 2023 as compared to Rs.2,62,159 Crores and Rs.1,55,801 Crores as of
31st March 2022 respectively.
CASA deposits stood at Rs.1,14,113 Crores as on 31st March 2023 as compared to Rs.1,13,877 Crores as on 31st March 2022 a landmark achievement in the history of the Bank. CASA ratio improved from 43.44% to 43.74% during the financial year 2022-2023.
The credit growth of the bank has increased by 21.31% (Y-o-Y) to Rs 1,89,009 Crores as on March 31st 2023. The efforts during the current year were aimed at sustaining the higher operational efficiency levels as the operating environment remained firm. Bank advances and accelerated the growth under Capital light advances such as Housing and Jewel loan. As a result, operating profit for the Bank has increased to Rs.5942 Crores as on 31st March 2023 as compared to Rs. 5763 Crores as on
31st March 2022.
On the asset quality side, the Bank has seen decrease in both gross NPA & Net NPA. The Gross NPA of the Bank has deceased to Rs 14,072 Crores (7.44%) as on 31.03.2023 from Rs 15,299 Crores (9.82%) reported in the financial year ended
31.03.2022. Similarly, the Net NPA of the bank has decreased to Rs 3,266 Crores (1.83 %) from Rs 3,825 Crores (2.65 %) for the above said period.
As a result of this approach, The Net profit of the Bank has increased by 22.76 % to Rs 2,099 Crores in the financial year ended 2022-23 from Rs 1,710 Crores as on 31.03.2022 on the back of strong growth in Net Interest Income and Improvement in asset quality.
Income and Expenditure Analysis
The Interest received on advances increased by 23.31 % (YoY) to Rs.13151 Crores as on 31st March 2023 on compared to Rs.10665 Crores received over previous year . Interest on investments has increased to Rs. 5899 Crores in FY 2022-23 as against Rs. 5675 Crores in FY 2021-22. Overall interest income has improved substantially to Rs. 19401 Crores in FY 2022-23 as against 16730 Crores in FY 2021-22.
The Interest on Deposits stood at to Rs.10536 Crores in FY 2022-23 as compared to Rs.10220 Crores paid in previous year. Interest on Borrowings has increased to Rs.609 Crores in FY 2022-23 as against Rs.199 Crores in FY 2021-22. Overall Interest Expenses has increased to Rs. 11145 Crores in FY 2022-23 as against Rs.10419 Crores in FY 2021-22. CASA has improved from Rs.113877 Crores as of 31st March-2022 to Rs.114113 Crores as of 31st March-2023 with a growth of 0.21%. CASA% has moved up from 43.44% as of 31st March-2022 to 43.74% as of 31st March-2023.
Net interest income has improved from Rs. 6311 Crores in FY 2021-22 to Rs. 8255 Crores in FY 2022-23. Operating expenses has increased to Rs. 6422 Crores in FY 2022-23 as against Rs.5451 Crores in FY 2021-22.
Yield on Advances has improved from the level of 7.24 % in FY
2021-22 to 8.52 % in FY 2022-23. Cost of deposits has been increased from 4.12 % in FY 2021-22 to 4.27 % in FY 2022-23. As a result, Net Interest Margin (NIM) stood higher by 79 bps at 3.20 percent in FY 2022-23 as against 2.41 percent in FY 2021-22.
Capital Raised during 2022-23 Raising of Tier II Bonds
Bank has raised Basel III compliant Tier II Bonds (Series V) aggregating to Rs.1000 crore on private placement basis at a coupon rate of 9.00% with a tenor of 10 years from the date of allotment with a call option at the end of 5th year & on subsequent coupon payment date. The instrument was rated by M/s ICRA Ratings and M/s CARE Ratings, and they had assigned ratings of AA-/Stable.
Corporate Governance
Corporate Governance reflects the built in value system of the
Bank in conducting its day to day affairs. The Bank recognizes the critical importance of effective Corporate Governance for the safe and sound functioning of the Bank and lays emphasis on ensuring that structures, processes and systems are put in place to establish strategic objectives to serve the interest of the Bank and its stakeholders which also facilitate effective monitoring.
SEBI (Listing Obligations and Disclosure Requirements Regulations), 2015 (LODR)
As per SEBI (LODR),
• The Bank is providing remote e-voting facility to its shareholders, in Annual General Meetings/ Extraordinary General Meetings.
The Code of Conduct is applicable to all members of the Board and the Senior Management (i.e., General Managers of the Bank).
• The Bank is submitting a quarterly compliance report on Corporate Governance to the Audit Committee of the Board and to BSE & NSE, where the shares of the Bank are listed.
The Bank is also submitting Quarterly Investor Grievance
Report to BSE & NSE.
Investor Education & Protection Fund (IEPF)
As per the guidelines of Ministry of Corporate Affairs (MCA),
Government of India, the Bank has transferred Unpaid Dividend amount up to the year 2013-14 to IEPF. Bank is complying with all guidelines/regulations laid down by the Regulatory Authorities and Government of India from time to time. The Bank redresses the shareholders grievances without any delay.
Capital Adequacy Ratio
The Banks capital adequacy ratio as on 31st March 2023 stood at 16.10 % as per Basel III norms.
Branch Network
The Bank has 3,220 domestic Branches as on 31st March 2023 as against 3,214 Branches as on 31st March 2022, comprising of 906 Rural Branches (28.13%), 961 Semi Urban Branches (29.84%), 655 Urban Branches (20.34%) and 698 Metropolitan
Branches (21.68%). The Bank also has 49 Regional Offices, 2 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. During the year under review (FY
2022-23), the Bank has opened 4 Rural Branches, 2 Digital
Banking Units & One Regional Office.
Board of Directors
The business of the Bank is vested with the Board of Directors.
The MD & CEO and EDs function under the superintendence, direction and control of the Board. The strength as on date is nine directors comprising three whole time Directors, one
GOI Nominee Director, one RBI nominee director, one director elected from amongst the shareholders to duly represent their interest and three part time non-official directors. The MD & CEO presides over the meetings of the Board as Chairman.
The position of the terms of directors during the FY 2022-23 is as under:
Name | Date of Joining | Term to end on | Designation |
Shri Ajay Kumar Srivastava | 01.01.2023 | 31.12.2025 | Managing Director & Chief Ex- ecutive Officer |
Smt S Srimathy | 10.03.2021 | 09.03.2024 | Executive Director |
Shri Sanjay Vinayak Mudaliar | 01.01.2023 | 31.12.2025 | Executive Director |
Smt Annie George Mathew | 22.07.2016 | *** | Govt. Nominee Director |
Shri Vivek Aggarwal | 25.02.2022 | *** | RBI Nominee Director |
Shri Sanjaya Rastogi | 03.12.2022 | 02.12.2025 | Share Holder Director |
Shri Suresh Kumar Rungta | 21.12.2021 | 20.12.2024 | Part Time Non-Official Director |
Shri B Chandra Reddy | 21.12.2021 | 20.12.2024 | Part Time Non-Official Director |
Shri Deepak Sharma | 21.12.2021 | 20.12.2024 | Part Time Non-Official Director |
During the FY 2022-23, the following directors tenure ended as below:
Name | Date of Joining | Term Ended on | Designation |
Shri Partha Pratim Sengupta | 24.07.2020 | 31.12.2022 | Managing Director & Chief Ex- ecutive Officer |
Shri Ajay Kumar Srivastava | 09.10.2017 | 31.12.2022 | Executive Director |
08.12.2017 | 07.12.2020 | ||
Shri Navin Prakash Sinha | 29.01.2021 # | 07.10.2022 | Share Holder Director |
# Shri Navin Prakash Sinha has been re-elected as Share Holder Director for the second term from 29.01.2021 till 28.01.2024. However, Shri Navin Prakash Sinha has resigned on 07.10.2022.
Acknowledgement
The Board of Directors are grateful for the valuable guidance and support received from the Government of India, Reserve Bank of
India, Securities and Exchange Board of India (SEBI), Stock Exchanges, State Governments, Financial Institutions and all Overseas Regulators. The Board of Directors acknowledge with thanks the valued Customers, Employees Union, Officers Association, Domestic and International Banking group, the shareholders & other stake holders for their valued support and continued patronage with the
Bank.
The Board also wishes to place on record its profound appreciation for the valuable contribution of the Banks Staff at all levels and looks forward to their continued involvement with commitment towards achieving the future goals
For and on behalf of the Board of Directors | |
Place : Chennai | Ajay Kumar Srivastava |
Date : 13th.June 2023 | Managing Director & Chief Executive Officer |
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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.
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
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.