indian bank share price Directors report

To The Members,

Your Directors have immense pleasure in presenting the Banks Annual Report along with the Audited Statement of Accounts and the Cash Flow statement for the year ended 31^st March 2023.

FINANCIAL HIGHLIGHTS

The major highlights of your Banks performance during FY23 are as follows:

A. Resource mobilization & Advances:

(Amount Rs in Cr)

Particulars	31.03.22	31.03.23	YoY (%)
Domestic Deposits	584661	608027	4.00
Of which Current	35969	35366	-1.68
Savings	211120	224873	6.51
CASA	247089	260239	5.32
CASA Mix (%)	42.26	42.80	54 bps
Overseas Deposits	8957	13139	46.68
Global Deposits	593618	621166	4.64
Domestic Advances (Gross)	395698	443921	12.19
Overseas Advances (Gross)	19927	29665	48.87
Total Advances (Gross)	415625	473586	13.95
Total Business	1009242	1094752	8.47
Total Assets	671668	710501	5.78

1. Global Deposits grew by 4.64% YoY and stood at Rs 6,21,166 Cr in March 2023.

2. Domestic CASA increased to Rs2,60,239 Cr registering a growth of 5.32% YoY. In order to augment the CASA portfolio, Bank has mobilised 38,98,084 new CASA accounts (excluding BSBD Savings account) during FY23.

3. Gross Advances of the Bank (Global) grew by 13.95% YoY and stood at Rs4,73,586 Cr as on March 31, 2023 from Rs4,15,625 Cr as March 31, 2022.

4. Priority Sector Advances were at Rs1,52,992 Cr as on March 31, 2023. Priority sector as a percentage to Adjusted Net Bank Credit (ANBC) for FY23 stood at 44.26% as against the mandatory target of 40%.

5. Agriculture Credit (Priority Sector) was at Rs66,607 Cr and as a percentage to ANBC the same stood at 19.27% as against the mandatory target of 18%.

6. All mandatory targets stipulated by RBI have been surpassed during FY23.

7. Gross NPA and Net NPA reduced to Rs28,180 Cr (5.95%) and Rs4,043 Cr (0.90%) respectively as on March 31, 2023 as against Rs35,214 Cr (8.47%) and Rs8,849 Cr (2.27%) respectively in March 31, 2022.

8. Total recovery of NPAs (including recovery in AUC accounts and MoI) during FY23 amounted to Rs7,358 Cr as against Rs5,542 Cr in the previous year.

9. Recovery in bad debts amounted to Rs2,177 Cr during FY23 as against Rs1,612 Cr in during FY22.

10. Provision Coverage Ratio (PCR) of the Bank improved by 644 bps to 93.82% in FY23 as against 87.38% in FY22.

11. As on 31^st March 2023, Bank has a network of 5,787 domestic branches, 3 overseas branches and 1 IFSC Banking unit (GIFT City), taking the total branch network to 5,791.

12. Total number of Banks ATMs and BNAs stood at 4929 which include 591 offsite ATMs/BNAs and 2 mobile ATMs.

13. 2914 Passbook Kiosks have been installed by Bank as on 31^st March 2023.

B. INCOME AND EXPENDITURE

(Amount Rs in Cr)

Particulars	31.03.22	31.03.23	YoY (%)
Interest Earned	38856	44942	15.66
Interest Expended	22128	24717	11.70
Net Interest Income (NII)	16728	20225	20.91
Other Income	6915	7143	3.30
Of which - Fee Income	2555	2969	16.20
Profit on sale of Investments	1626	381	-76.57
Recovery of bad debts	1612	2177	35.05

(Amount Rs in Cr)

Particulars	31.03.22	31.03.23	YoY (%)
Operating Revenue (NII + Other income)	23643	27369	15.75
Operating Expenses	10926	12098	10.72
Of which - Employee Expenses	6695	7527	12.41
Other operating Expenses	4231	4571	8.01
Operating Profit	12717	15271	20.08
Provisions	8772	9989	13.87
Of which - Provisions for NPA (inclusive of NPI)	8557	6921	-19.11
Provision for Standard advances	962	2295	139
Provision for Tax	(741)	633	-
Net profit	3945	5282	33.89

As on March 31, 2023,

1. Total income of the Bank increased by 13.79% and stood at Rs52,085 Cr, with Interest Income at Rs44,942 Cr and other Income at Rs7,143 Cr.

2. Banks total expenditure inceased by 11.37% and stood at Rs36,185 Cr with Interest Expenditure at Rs24,717 Cr and Operating expenses at Rs12,098 Cr.

3. Banks Operating Profit and Net Profit witnessed an increase of 20% and 34% respectively and stood at Rs15,271 Cr and Rs5,282 Cr respectively. (For FY22 the same were at Rs12,717 Cr and Rs3,945 Cr respectively).

C. Key Ratios for Mar23 are as under: (in %)

Parameters	31.03.22	31.03.23
Yield on Advances	7.21	7.76
Cost of Deposits	3.97	4.09
Return on Assets	0.63	0.77
Return on Equity	12.13	14.73
Net Interest Margin	2.93	3.37
Cost Income ratio	46.21	44.20
Average Business per employee (Rs in lakh)	2252	2355
Profit per employee ( Rs in lakh)	9.91	12.95

D. NETWORTH AND CRAR

1. Networth of the Bank stood at Rs37,431 Cr as on March 31, 2023 as against Rs33,625 Cr in March 31, 2022.

2. As per Basel III norms, the Capital to Risk weighted Assets Ratio (CRAR) was at 16.49% as on March 31, 2023, compared to 16.53% in March 31, 2022 and as against the regulatory requirement of 11.50%. The CET- I ratio was at 12.89% as against 12.53% in March 31, 2022 and the minimum requirement of 8.00%. The CRAR of Tier I capital was at 13.48% as of March 31, 2023.

		(in %)
	As on
BASEL III	31.03.2022	31.03.2023
CET- I	12.53	12.89
Tier- I Capital	13.17	13.48
Tier-II Capital	3.36	3.01
Total	16.53	16.49

E. RECRUITMENT / TRAINING

As per Government guidelines, pre-recruitment and pre-promotion trainings were offered to SC/ST employees during the process of direct recruitment and internal promotions.

F. CHANGES IN THE BOARD DURING THE YEAR:

All the Directors have been appointed/nominated by the Govt. of India (GOI) except Shareholder Directors.

Shri Sanjeev Kaushik was GoI Nominee Director of the Bank upto 13.09.2022. Government of India, Ministry of Finance, Department of Financial Services, vide notification dated 14.09.2022 nominated Dr. M P Tangirala as GoI Nominee Director of the Bank in place of Shri Sanjeev Kaushik.

Shri Mahesh Kumar Bajaj was appointed as Executive Director of the Bank vide Government of India, Ministry of Finance, Department of Financial Services, notification dated 21.11.2022.

G. DIRECTORS RESPONSIBILITY STATEMENT

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

1. The applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

2. The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied;

3. Reasonable and prudent judgment and estimates were made so as to give a true and fair view on the state of affairs of the Bank at the end of the financial year and profit of the Bank for the year ended March 31, 2023.

4. Proper and sufficient care were taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and

5. The accounts have been prepared on a going concern basis.

H. ACKNOWLEDGEMENT

The Board expresses its deep sense of gratitude to the Government of India, State Governments, Reserve Bank of India and Securities & Exchange Board of India for the valuable guidance and support received from them. The Board also thanks the financial institutions and correspondent Banks for their co-operation and support. The Board acknowledges the unstinted support of its customers and shareholders. The Board places on record its appreciation for the valuable contribution made by Shri. Sanjeev Kaushik who ceased to be member during the year. The Board also places on record its appreciation for the dedicated services and contribution made by members of staff for the overall performance of the Bank.

For and on behalf of Board of Directors

S L JAIN

MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER