Indian Bank Directors Report.


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 March st 2020


The major highlights of your Banks performance during FY 20 are as follows:

Resource mobilization &Advances:

(Rs in Cr)

Particulars 31.03.20 31.03.19 Growth (%)
Domestic Deposits 252792 235237 7.5
Of which Current 13059 12778 2.2
Savings 76525 70681 8.3
CASA 89584 83459 7.3
CASA Mix 35.4 35.4
Overseas Deposits 7434 6839 8.7
Global Deposits 260226 242076 7.5
Domestic Advances (Net) 189696 173820 9.1
Overseas Advances (Net) 8191 7442 10.1
Total Advances (Net) 197887 181262 9.2
Total Business 458113 423338 8.2
Total Assets 310052 281190 10.3

• Domestic CASA registered a growth of 7.3% YoY and the CASA ratio was maintained at 35.4%. In order to augument the CASA portfolio, Bank has opened 21,56,586 new CASA accounts during FY 20. Facility for online opening of Savings bank account by customers was rolled out during the year and 16,666 accounts have been opened upto 31 March st 2020.

• Core Term Deposits posted a growth of 22.9% as against 13.1% in FY 19. Reliance on Bulk deposits (PDs and CDs) has declined significantly and their share to total deposits was at 4.3% as against 11.7% for the previous year.

• Priority Sector Advances was at Rs 72,248 Cr as on 31st March 2020. Priority sector as a percentage to quarterly average Adjusted Net Bank Credit (ANBC) for FY 20 stood at 43.42% as against the mandatory target of 40%.

• Agriculture Credit (Priority Sector) was at Rs 31,358 Cr and the percentage to quarterly average ANBC stood at 18.84% as against the mandatory target of 18.00%.

• Capital Adequacy Ratio (Basel III) was at 14.12% as at March 31, 2020 as compared to 13.21% as at March 31, 2019.

• Gross NPA was at 6.87% as on March 31, 2020 as against 7.11% as on March 31, 2019 while Net NPA was at 3.13% as on March 31, 2020 as against 3.75% as on March 31, 2019.

• Total recovery of NPAs during FY20 amounted to Rs 1,494 Cr as against Rs 1,808 Cr in the previous year.

• Total domestic branch network of the Bank in India increased to 2887 as on 31st March 2020. from 2872 as on 31st March 2020 Besides, the Bank has 3 overseas branches, taking the total branch network to 2890.

• Total number of ATMs & BNAs increased to 4149 as on 31st March 2020 from 3892 as on 31st March 2019, which includes 695 offsite ATMs / BNAs and 6 mobile ATMs.

• As on 31st March 2020 bank has installed passbook kiosks at 716 locations.

( Rs in Cr)

31.03.20 31.03.19 Growth (%)
Interest Earned 21405 19185 11.6
Interest Expended 13799 12167 13.4
Net Interest Income (NII) 7606 7018 8.4
Other Income 3313 1883 75.9
Of which — Fee Income 1357 1185 14.5
Profit on sale of Investments 880 175 402.9
Recovery of bad debts 261 158 65.2
Operating Revenue (NII + Other income) 10919 8901 22.7
Operating Expenses 4421 4020 10
Of which Employee Expenses 2473 2223 11.2
Other operating Expenses 1948 1797 8.4
Operating Profit 6498 4881 33.1
Provisions 5745 4559 26
Of which Provisions for NPA 4336 3658 18.5
Provision for Standard advances 143 -6 xxx
Provision for Tax 619 -38 xxx
Net profit 753 322 133.9


• During the year 2019-20, total income of the Bank increased by 17.3% to Rs 24,718 Cr, with Interest Income at Rs 21,405 Cr and other Income at Rs 3,313 Cr

• The Banks total expenditure increased by 12.6% to Rs 18,219 Cr from Rs 16,187 Cr during FY 20.

• Total operating expenses was at Rs 4,421 Cr for FY 20 as compared to Rs 4,020.37 Cr in FY 19.

• Operating Profit increased to Rs 6498 Cr as against Rs 4,881 Cr for FY 19.

• Net profit increased to Rs 753 Cr as against Rs 322 Cr for FY19.

KEY RATIOS FOR MAR - 20 (in %)
Parameters Mar-20 Mar-19
Yield on Advances 8.46 8.45
Cost of Deposits 5.34 5.28
Return on Assets 0.26 0.12
Cost Income ratio 40.49 45.17
Average Business per employee ( in lakh) 2286.76 1917.96
Profit per employee ( in lakh) 4.02 1.64


• Networth of the Bank stood at Rs 18,357 Cr as on March 31, 2020 from Rs 15,754 Cr as on March 31, 2019.

• As per Basel III norms, the Capital to Risk weighted Assets Ratio (CRAR) was at 14.12% as on March 31, 2020, compared to 13.21% of March 31, 2019 and as against the requirement of 10.875 %. The CET- I ratio was 11.78% as of March 31, 2020 as compared to 10.96% as of March 31, 2019 and against the minimum requirement of 7.375%. The CRAR of Tier I capital was 12.08% as of March 31, 2020 as against 11.29% as of March 31, 2019.

(in %)

As on
BASEL III Mar-20 Mar-19
CET- I 11.78 10.96
Tier- I Capital 12.08 11.29
Tier-II Capital 2.04 1.92
Total 14.12 13.21


• 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.


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

• Shri J K Dash was RBI Nominee Director of the Bank upto 25.04.2019. Shri S K Panigrahy was nominated as RBI Nominee Director in place of Shri J K Dash vide Government of India, Ministry of Finance, Department of Financial Services, New Delhi Notification F No.6/3/2011-BO.1 dated 26.04.2019.

• Shri Vijay Kumar Goel, Part time Non Official Director under Chartered Accountant Category was Director of the Bank till 25.07.2019.

• Shri Amit Agrawal was Government Nominee Director of the Bank upto 24.01.2020. Shri Sanjeev Kaushik was nominated as Gol Nominee Director in place of Shri Amit Agrawal vide Government of India, Ministry of Finance, Department of Financial Services, New Delhi Notification F No.6/3/2012-BO.I (Vol II) dated 24.01.2020.

• The 3 year term of Shri Padmanaban Vittal Dass, Part-Time Non-Official Director of the Bank ended on 24.04.2019. He was re-nominated as Part time Non-Official Director of the Bank for a period of one year or until the amalgamation of the Bank i.e. 31.03.2020, or until further orders, whichever is earliest, vide Gol notification F.No.6/1/2018-BO.1 (Vol III) dated 21.10.2019. His term ended on 31.03.2020.

• The term of Shri M K Bhattacharya, Executive Director was extended for a period beyond 17.02.2020 till the date of his superannuation, i.e. 30.11.2020, or until further orders, whichever is earlier vide GOI notification F.No.4/5/2016 -BO.I dated 18.02.2020.

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

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

• Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended March 31, 2020.

• 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.

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


The Directors confirm that in the preparation of the annual account for the year ended March 31, 2020.

The Board expresses its deep sense of gratitude to the Government of India, 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. J.K.Dash, Shri. Amit Agrawal, Shri. Vijay Kumar Goel and Shri. Padmanaban Vittal Dass who ceased to be members during the year.

The Board 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