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 st March 2019.


FY 2018-19 ended on an encouraging note with a YOY growth of 16%. Global business touched 4.30 lakh crore mark, contributed by 16.2% growth in deposits and 15.5% in advances. The loan book growth was broad-based which led to appreciable increase in interest income. There were challenges on asset quality front which led to increased provisioning requirement and consequent impact on Net Profit. Having taken all necessary steps to align with regulatory and audit requirements during the past year, the path ahead is clear and bright.

As per RBI data as on 29th March 2019, the aggregate deposits and advances of ASCBs have grown by 13.15% and 17.02% respectively. In comparison, Banks deposits and advances had grown at 20.37% and 20.83% respectively. The market share of the Bank has went up from 1.75% to 1.88% in deposits and from 1.80% to 1.83% in advances.

Bank was among the top 4 positions in respect of key parameters like Business (Deposits & Advances growth), Profitability (Interest/Total income, ROA and Net Profit to business), Asset Quality (Gross/Net NPA ratios) and Productivity (Cost to Income ratio).

The major highlights of your Banks performance during FY 2018-19 are as follows:

• Global Business of the Bank reached 4,29,972 Cr during the year, registering a growth of 15.89%.

• Global Deposits reached 2,42,076 Cr with a growth of 16.22% and Global Advances reached 1,87,896 Cr with a growth of 15.47%. Overall Credit-Deposit ratio was at


• Priority Sector Advances reached 66,847 Cr and as a percentage to Adjusted Net Bank Credit (ANBC) was 41.93% as against the mandatory target of 40.00%.

• Agriculture Credit (priority sector) was at 31,748 Cr and as a percentage to ANBC stood at 19.91% as against the mandatory target of 18.00%.

• Domestic Net Interest Margin was at 3.00%.

• Total income increased by 7.93% to 21,067.71 Cr, with Interest income growing by 12.1% to reach 19,184.82 Cr and other Income at 1882.89 Cr.

• Net interest income grew by 12.05% and was at

7,018.10 Cr

• Operating Profit was 4880.62 Cr and Net Profit was 321.95 Cr (1258.99 Cr for FY 2017-18).

• Return on Average Assets was at 0.12% and Return on Net worth was at 2.00%.

• CapitalAdequacy Ratio (Basel III) was at 13.21% (12.55% for FY 2017-18).

• Total recovery of NPAs during FY 2018-19 amounted to 1808 Cr as against 910 Cr in the previous year.

• Earnings per share were at 6.70 and Book value was at


• Total domestic branch network of the Bank in India increased to 2872 as on 31.03.2019 from 2820 as on 31.03.2018. Besides, the Bank has 3 overseas branches, taking the total branch network to 2875.

• Total number ofATMs increased to 2849 as on 31.03.2019 from 2846 as on 31.03.2018, which includes 653 offsite ATMs, 5 mobile ATMs. Apart from the above, Bank has 1043 BNAs as on 31.03.2019 which includes 43 off site BNAs.

• Passbook Kiosks have been installed at 481 locations as on 31.03.2019.


(in %)
Parameters 2018-19 2017-18
Yield on Advances 8.45 8.50
Cost of Deposits 5.28 5.30
Return on Assets 0.12 0.53
Cost Income ratio 45.17 42.31
Business per employee ( in lakh) 2174.26 1856.40
Profit per employee ( in lakh) 1.64 6.34
Gross NPA (in %) 7.11 7.37
Net NPA (in %) 3.75 3.81


FY 2018-19 witnessed several other positive developments viz.,

• Successful issue of Basel III compliant Tier II bonds for

1,000 crore,

• Bank designated as an exclusive banker for Direct benefit transfer under major Government schemes, both in the State of Tamil Nadu and UT of Puducherry.

• Successfully on boarded on all the three TReDs platforms for MSME bill discounting.

• Adjudged Top performing Bank for multiple scheme payments under PFMS, 2 nd highest among PSBs and 5 th among all Banks in ATM transactions, Mobile Banking Transactions recorded 4-fold increase and highest Rupay Platinum card issuer among all banks.

• Bank continued to win coveted awards from NABARD, PFRDA, Government of India and Tamilnadu Government for its performance and initiatives in Financial Literacy, SHG Bank Linkage, Priority Sector Lending, Technology for Social Banking,APY, PMSBY etc.

• Formation of Tamil Nadu Grama Bank under Banks sponsorship with the successful amalgamation of Pandyan Grama Bank, an RRB sponsored by IOB with our own Pallavan Grama Bank.


• Networth of the Bank stood at 15,784.53 Cr (15,826.98 Cr as on 31.03.2018)

(in %)
As on
March 2019 March 2018
CET- I 10.96 # 11.00
Tier- I Capital 11.29 11.33
Tier-II Capital 1.92 1.22
Total 13.21 * 12.55

(As against the requirement of # 7.375% and *10.875% respectively)


• 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.

Smt. Padmaja Chunduru assumed charge as MD&CEO of the Bank on 21.09.2018.

Shri Kishor Kharat was MD &CEO of the Bank upto 13.08.2018.

Shri A S Rajeev was Executive Director of the Bank upto 30.11.2018.

Shri. V V Shenoy assumed charge as Executive Director on 01.12.2018.

Ms Mudita Mishra was Government Nominee Director of the Bank upto 04.04.2018.

Mr Amit Agrawal was nominated as the Govt. of India Nominee Director from 05.04.2018.

Shri T C Venkat Subramanian was Part-Time Non-Official Director as well as Non-Executive Chairman of the Bank upto 13.08.2018.


The Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2019: –

• 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, 2019.

• 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

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


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 cooperation 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. T.C.Venkat Subramanian, Shri. A.S.Rajeev, Ms. Mudita Mishra, who ceased to be members during the year.

The Board also places on record its appreciation for the valuable contribution made by Shri. Kishor Kharat, MD & CEO who demitted office on 13.08.2018.

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