Indian Bank Management Discussions.

Global Economy

• The IMF World Economic Outlook (WEO), April 2019 projected the global growth to fall from 3.6% in 2018 to 3.3% in 2019. The 2019 global growth forecast is 0.2% points below that in the January 2019 WEO Update. Growth in advanced economies is expected to slow from 2.2% in 2018 to a downwardly revised 1.8% in 2019. Growth in Emerging market and developing economies (EMDEs) is projected to marginally fall from 4.5% in 2018 to 4.4% in 2019. Growth in US is projected to fall from 2.9% in 2018 to 2.3% in 2019 as the impact of fiscal stimulus fades. The monetary policy stances of the US Fed and Central Banks in other major advanced economies (AEs) have turned dovish.

• The Euro area slowed down in Q4:2018 on soft domestic demand and contracting manufacturing activity. Growth is expected to fall to 1.3% in 2019.

• In the UK, growth slowed down on Brexit uncertainty, with industrial production contracting during September-January. The Chinese economy decelerated in Q4:2018 on subdued domestic and global demand impacting industrial activity. Growth is projected to moderate from 6.6% in 2018 to 6.3% in 2019.

• Growth in India is expected to remain the highest among EMDEs, increasing to 7.7% by 2024. The country emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy, partnerships and Market size. Indias GDP is estimated to have increased 7.2 per cent in 2017-18 and 6.8 per cent in 2018-19.

Indian Economy:

• As per the second advanced estimates of National Accounts Statistics, real GDP is estimated to grow by 7.0% in FY19, lower than 7.2% in FY18. This is largely attributable to a moderation in the growth of final consumption expenditures, both private and government.

• The growth slowdown was mainly on account of the weakness in consumption demand and continued subdued private investment activity on account of low income growth coupled with the liquidity issue in the aftermath of the NBFC crisis which constrained availability of funds for producers as well as consumers. Economic growth during the year was supported partly by exports and higher government spending towards infrastructure building.

• Cumulative Index of Industrial Production growth for the period April 2018-March 2019 over the corresponding period of the previous year stands at 3.6 percent. The cumulative growth in Mining, Manufacturing and Electricity sectors during FY 2018-19 over the corresponding period was 2.9%, 3.5% and 5.2% respectively.

• The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stood at 145.0 in March, 2019, which was 4.7 per cent higher as compared to the index of March, 2018. Its cumulative growth during April to March, 2018-19 was 4.3 per cent.

• The Nikkei India Manufacturing Purchasing Managers Index (PMI) which measures the performance of the manufacturing sector and is derived from a survey of 500 manufacturing companies registered 52.6 in March 2019. Although above the line of expansion, it fell from 54.3 in February 2019 to a six-month low. It continued to signal improving operating conditions in the sector eventhough the latest figure highlighted a loss of growth momentum. Consumer goods was the brightest spot in March, followed by the intermediate and then investment goods categories.

• In its first bi-monthly monetary policy review of FY20 in April 2019, RBI reduced the Repo rate, for the second successive time in 2019, by another 25 basis points, bringing it down to 6%.

• RBI lowered its forecast of Indias Economic growth by 20 bps to 7.2% for Fiscal 2020. Continued undershooting of inflation and lowering of household inflationary expectations led RBI to moderate its inflation outlook.

• Inflation has averaged 3.4% in Fiscal 2019 with food inflation at a historical low of 0.14%.

• In the RBIs assessment, the outlook for headline CPI inflation is likely to be influenced by: (a) uncertainty surrounding food prices, (b) core inflation which continues to remain at elevated levels, (c) recent pick up in international crude oil prices, (d) likely reversal in fuel inflation, (e) sustained volatility in financial markets and (e) fiscal position of the Government.

• CPI inflation increased to 2.9% (y-o-y) in March 2019 from 2.6% in February 2019 after having declined to a trough of 2.0% (y-o-y) in January 2019, driven mainly by a continued fall in the pace of contraction in food prices.

• WPI inflation increased to 3.2% in March 2019 from 2.9% in February 2019 due to higher inflation in vegetables and fuel.

• Export growth was broad based and picked up to 8.6% in Fiscal 2019 which was close to Import growth of 9%. However going ahead headwinds to export growth are likely to emerge in the form of trade tensions amid a slowing global economy.

• The current account deficit (CAD) is expected at 2.4 per cent of GDP in 2018-19 and 2.3 per cent of GDP in 2019-20.

• Indias overall exports (Merchandise and Services combined) in FY 2018-19 are estimated to be US$ 535.45 Billion, exhibiting a positive growth of 7.97 per cent over the same period last year. Overall Imports in April 2018-March 2019 are estimated to be US$ 631.29 Billion, exhibiting a positive growth of 8.48 per cent over the same period last year.

• Taking merchandise and services together, overall trade deficit for FY 2018-19 is estimated at US$ 95.85 Billion as compared to US$ 86.05 Billion in FY 2017-18.

Interim Union Budget for 2019-20

• Focus on supporting the needy farmers, economically less privileged, workers in the unorganised sector and salaried employees, while continuing the Governments push towards better physical and social infrastructure.

• Under the Make in India initiative, attempt is made to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 per cent.

• Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy

Recent initiatives and developments undertaken by the Government of India:

• Approved the National Policy on Software Products –2019, to develop the country as a software hub.

• National Mineral Policy 2019, National Electronics Policy 2019 and Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME II) have also been approved by the Government of India in 2019.

• Village electrification in India was completed in April 2018 and Universal household electrification is expected to be achieved by March 2019 end.

• The maiden Agriculture Export Policy, 2018 was released which seeks to double agricultural exports from the country to US$ 60 billion by 2022.

• Around 1.29 million houses have been constructed up to December 24, 2018, under Government of Indias housing scheme named Pradhan MantriAwas Yojana (Urban).

• Prime Ministers Employment Generation Programme (PMEGP) will be continued with an outlay of 5,500 crore (US$ 755.36 million) for three years from 2017-18 to 2019-20.

Major Economic & Monetary Developments:

• Following the first tranche of capital infusion i.e. 88,139 Cr in FY 2017-18 to PSBs by Government of India, a second tranche of 1.06 lakh Cr was provided in FY 2018-19. All PSBs except your Bank were recipient of Governments capital assistance.

Transition period for implementing the last tranche of 0.625 per cent of risk-weighted assets (RWAs) under the Capital Conservation Buffer (CCB) was extended by one year to March 31, 2020. This provided a breather to banks, weighed down due to huge provisioning for bad loans in the last two years.

Implementation of Ind AS deferred till further notice as the legislative amendments recommended by the Reserve Bank are under consideration of the Government of India.

Statutory Liquidity Ratio (SLR) to reduce by 25 bps each quarter till it reaches 18% - Implemented from 1 January st 2019.

• Banks have been permitted to reckon an additional 2.0 percent of Government securities within the mandatory SLR requirement, as FALLCR for the purpose of computing LCR, in a phased manner with a view to move further towards harmonisation of the effective liquidity requirements of banks with the LCR.

Introduction of Co-origination of loans by Banks and NBFCs (for providing competitive credit to priority sector) has opened a window of opportunity for Banks to enter into collaboration with NBFCs for extending outreach and increase loan book.

External benchmarks for floating rate loans proposed i.e. all new floating rates, personal or retail loans (housing, auto etc.) and floating rate loans to Micro and Small Enterprises extended by banks from April 1, 2019 shall be benchmarked to an external benchmark. As Bank deposits carry a fixed rate of interest as against a floating rate for advances, the implementation of the same has been postponed by RBI for detailed discussions with all the stakeholders and thereafter work out an effective mechanism for transmission of rates

• Definition of bulk deposits for single rupee deposits revised to 2 Cr and above instead of the existing 1 Cr and above.

• Limit for collateral–free agriculture loans raised from 1 lakh to 1.6 lakh in view of the overall inflation and rise in agriculture input costs. This will enhance coverage of small and marginal farmers in the formal credit system and provide avenues to Banks for increasing their Agriculture portfolio.

• End use restrictions relaxed under the approval route of the ECB framework for resolution applicants under the CIRP enabling usage of ECB proceeds for repayment of Rupee term loans of the target company.

Partial Credit Enhancement for bond issues by NBFC and HFCs and increased ceiling for lending to a single NBFC would create lending opportunities for high rated NBFCs.

• Rated exposures of banks to all NBFCs, excluding Core Investment Companies (CICs), to be risk weighted as per the ratings assigned by the accredited rating agencies, in a manner similar to that for Corporates with a view to facilitate flow of credit to well-rated NBFCs. Exposures to CICs will continue to be risk-weighted at 100%.

• A separate ombudsman scheme for digital payments has been launched to redress complaints raised by customers for digital transaction.

Major announcements with impact on growth of bank credit:

"Loan System for Delivery of Bank Credit"

For borrowers having an aggregate fund-based working capital limit of 150 crore and above from the banking system, the limit has to be carved out into two components - working capital limit or loan component (40 per cent of the aggregate limit) and cash credit (60 per cent) with effect from April 1st 2019. Drawings up to 40 per cent of the overall fund-based working capital limits will only be allowed from the loan component and drawings in excess of the minimum loan component threshold will be allowed in the form of cash credit (CC) facility.

"Enhancing Credit Supply for Large Borrowers through Market Mechanism".

In terms of Framework for Large Corporate Borrowers announced by SEBI to be implemented from 1st April, 2019, Large corporate borrowers i.e. having long term borrowings more than 100 Cr (excluding foreign loans and inter-corporate deposits) with rating of AA and above will required to raise 25% of their long term funding requirement via Corporate bonds.

The above guidelines coupled with other guidelines on enhancing credit supply for large borrowers through market mechanism will compel the banks to change their credit growth strategy through more active participation in the bond market which may have an impact on the profit margins. However given that most of these borrowers are already in the bond market, the positive impetus for this segment is expected to be limited.

Banking Sector in 2018-19:

• Banking sector passed through a phase of liquidity deficit for most of the year which required intervention from RBI through the LAF window as well as OMO of around 3 lakh crore in the year.

• The credit off take improved further during 2018-19 with Bank credit growing 13.2%, higher than the 10.2% growth of the previous year. It surpassed the growth of deposits which was 10% during 2018-19 compared with the 6.2% growth a year ago.

• Deposits of 1 year tenure of the Banks were in the range of 6.25-6.75% as of 15th March whereas their MCLR increased from 7.80-7.95% to 8.05-8.55% during the year.

• RBI increased the repo rate from 6% to 6.5% in two tranches of 25 bps each and then lowered the rate in the February policy to 6.25%. The 10 years GSec yield came down gradually amid some volatility from 7.57% to 7.35% during the year. CRR remained unchanged while the SLR was reduced from 19.5% to 19.25%.

• Gross NPA ratio moderated by December 2018. After increasing from 4.3% in FY15 to 7.5% in FY16 the ratio increased to 9.3% in FY17 and 11.5% in FY18. It has since then moderated to 10.2% in December 2018 (for a set of around 40 banks in FY19).

• The stressed asset ratio as of September 2018 was 10.8% with the ratios being 21.8% for industry, 8.6% for agriculture, 6.5% services and 2.1% retail. Within industry the segments that had ratios above 20% were: metals 34.2%, mining 29.7%, engineering 28.3%, construction 25.6%, gems and jewellery 24.9%, vehicles 23%, food processing 21.4%, paper 21.1% and infrastructure 20.1%.

• As on 29th March 2019, Money Supply (M3) grew by 10.6 (y-o-y) to 155524.7 billion. Currency with Public at 20551.1 billion, Demand Deposit with Bank at 16,263.5 billion. Time Deposits with Bank at 117,205.9 billion.

• Aggregate Deposits of Scheduled Commercial Banks grew by 13.15% (y-o-y) to 1,25,72,586 Cr as on 29th March, 2019. Bank Credit grew by 17.02% (y-o-y) to 97,67,435 Cr.

• With effect from 1st April 2019, Vijaya Bank and Dena Bank were merged with Bank of Baroda as per the scheme of amalgamation approved by the Government of India.

• IDBI Bank was categorised as a private sector bank by the Reserve Bank of India, with effect from January 21, 2019 following the acquisition by Life Insurance Corporation of India (LIC).

Year ahead:

• With a strong Government backed by an overwhelming mandate for the second successive 5 year term, continuity in policy and reforms is expected to pave the way for commencement of investment decisions and inflows which would augur well for the domestic economy.

• The prevailing economic weakness i.e. low consumption demand and industrial output would require direct intervention by the government in certain areas (agriculture, employment generation, tax reforms and lowering of rates, address banking sector issues and continued capital expenditure) to stimulate economic growth.

• RBI has observed that in terms of economic prospects for the Indian Economy, private consumption is expected to hasten with an increase in public spending in rural areas and increase in disposable incomes of the households on account of tax exemptions provided in this years interim budget.

• The RBI also believes that higher financial flows to the commercial sector will help revive economic activity. However, it has also expressed concerns about uncertainties surrounding growth in the form of subdued investment activity, slowdown in production and imports of capital goods along with lower exports due to slowdown in global economic growth.

• With Economic growth concerns and tolerable levels of inflation, it is expected that RBI would further reduce policy (repo) rates in the remainder of the ongoing fiscal year. Like last year, Bank credit growth is expected to surpass deposit growth.

DETAILED BUSINESS OVERVIEW - Resource mobilisation & Credit deployment (As on March 31, 2019)

• Global Business reached a level of 4,29,972 Cr (3,71,020 Cr as on March 31, 2018) with a growth of 15.89%. Domestic business was at 4,15,582 Cr.

• Global Deposits reached 2,42,076 Cr (2,08,294 Cr as on March 31, 2018) with a growth of 16.22%. Domestic Deposits reached 2,35,237 crore.

• Domestic CASA Deposits reached 83,459 Cr (76,459 Cr as on March 31, 2018) recording a growth of 9.16%.

• Gross Advances was at 1,87,896 Cr (1,62,726 Cr as on March 31, 2018). Domestic Credit reached 1,80,345 Cr.

• Domestic Non food credit increased 1,79,505 Cr (1,55,604 Cr as on March 31, 2018)

• Global Credit-Deposit Ratio stood at 77.62%.


Bank has expanded its distribution network by 91 branches during the year. 39 branches were merged during the Financial Year, of which 23 were Service branches which were merged with grid branches at Chennai, Delhi and Mumbai.

The Branch network stood at 2872 branches on 31.03. 2019, comprising of 737 Rural, 824 Semi urban, 633 Urban and 678 Metropolitan branches. Besides, Bank has 3 foreign branches in Singapore, Colombo and Jaffna

In the 356 under banked districts identified by Reserve Bank of India, Bank has 407 branches. There are 452 branches in Minority concentrated Districts and 244 branches in the unbanked centres


India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years.

The financial sector has been going through a phase of transformation and convergence with changing regulatory environment and increased competition from the private sectors banks and new entrants viz., Payment Banks, Small Banks and Fintech Companies. With the advent of digital technologies, the banking landscape is fast changing , both in breadth and depth.

The return of a strong Government at the centre for the second successive 5 year term would ensure a continuity in policy and reforms and pave the way for commencement of investment decisions and inflows. It is expected to further strengthen the Banking sector and various initiatives taken viz., reform measures and structural changes including recapitalization plan and introduction of Enhanced Access and Services Excellence (EASE) towards responsive and responsible banking are expected to gather more momentum.

The Government and RBI are also focused on tackling the stressed assets under the Insolvency & Bankruptcy Code (IBC) with emphasis on quick resolution.

Considering the prevailing Economic conditions in the country, Government Reforms and thrust towards select sectors to boost employment and economic growth, your banks strategy for FY 2019-20 will be on strong growth with focus on profitability.

The prime focus this year would be on increasing CASA and fee income, accelerating recovery in respect of impaired assets and containing the level of NPA. The growth in business should culminate in improving the bottom line of the Bank.

The Bank aims at a healthy growth across both the Corporate and RAM segments. With a view to improve quality Credit dispensation, bottom line etc, it is proposed to set up Corporate Branches for handling exclusive large borrowal accounts with exposure of 50 Cr and above at select Metro centres. This structure is expected to improve the response time to the request of customers and be prepared with required level of expertise.

Besides, Field General Managers are being positioned between Corporate Office and Zones at 6 Centres (Chennai, Coimbatore, Delhi, Kolkata, Mumbai and Hyderabad) to drive business growth of Zones and exercise first level of control.

Chief Operating Officer (COO) at the level of General Manager will be overseeing the administrative and operational functions of the Bank.

The Credit Monitoring Department is being strengthened with an exclusive General Manager for proactive efforts to prevent slippage of accounts and an exclusive cell at Corporate Office under General Manager would be sourcing Govt Business through Technology offerings (for collection & reconciliation).

SAM Vertical Branches which are functioning at 7 Centres would continue their efforts for dedicated monitoring and recovery of high value borrowal accounts ( 1 Cr & above).

The focus would also be on offering efficient and excellent customer service with frequent employee customer connects and educating customers on the use of digital banking to give them great ease and convenience.

Towards improving efficiency, the exercise of Rationalization of unviable and slow growth branches is being taken up to ensure that the infrastructure and manpower are optimally deployed at other centres with potential for good growth. The centralization of HR/Corporate credit/Recovery verticals & Forex trade processing unit are expected to cut down costs and at the same time ensure availability of dedicated resources with expertise at a single location for better service delivery and reduced TAT.

Going forward, focus would be on forging partnerships viz., Co-origination of loans in collaboration with NBFCs, tying up with Builders/Vehicle dealers and Tractor manufacturers and exploring cross sell options through tie up with Insurance companies for sale of Bancassurance products, Life & Non life etc. Besides, MSME lending would be ramped up through TReDS platform, being onboarded on three platforms.

The above steps are expected to produce tangible results and help the Bank to sustain its growth and deliver higher and value based returns to all the stakeholders.



Rates of interest were revised upward 6 times between April 18 & March 19

3 year & above bucket has been split into 3, 3 <5 years, 5yr & above 5 years.

New card rate products were introduced on 14.06.2018 for amount above 5 crore which resulted in increase in deposits under this portfolio. The above products were well received by the field level functionaries as it adds to their core deposit

Fixed Maturity Domestic Term Deposit Product "IB Foundation" for 112 days & "IB Foundation Multiplier" for 412 days were introduced to commemorate the Banks 112th Foundation day. Bank could garner 5150 Cr under this scheme alone.

New Fixed Maturity Domestic Term Deposit Product "IB Superior" for 444 days @7.00% was launched on 24.01.2019 and the performance till 31.03.2019 is 5329 Cr.

Change in the strategy to have lesser dependence on PDs/CDs and replace it with retail deposits


Two campaigns have so far been conducted since April 2018 and Bank could garner 118 Cr through 1.56 lakh fresh connections from the one held in the month of Dec 18.

"IB Kamadhenu" CASA campaign which ended on 28.02.2019 with targeted focus on new clientele was really successful and Bank could mobilize 897 Cr.

Products & Services

Introduction of simplified nomination facility in CBS & Online nomination facility

Introduction of IB-Surabhi – Exclusive Savings Bank Product for Women.


The total outstanding under Agriculture credit was

39005 Cr and has increased by 7763 r ofC as MAR 2019 from March 2018 ( 31242 rC ).


Under Ground Level Credit Flow to Agriculture (GLF), Bank disbursed farm loans to the tune of 35916.53 Cr during the FY 2018-19 as against an annual target of 21500 Cr.

During the FY 2018-19, our bank disbursed sum of 18735.60 Cr to 26.61 lakh small/marginal farmers.


Priority Sector Advances was at 66847.36 Cr as on 31.03.2019 and the percentage to Adjusted Net Bank Credit (ANBC) for 2018-19 stood at 41.93% as against the mandatory target of 40%.

Agriculture Credit was at 31747.75 Cr as on 31.03.2019 and the percentage toANBC stood at 19.91% as against the mandatory target of 18%.

Lending to SF/MF stood at 14750.08 Cr as on 31.03.2019 and constituted 9.25% of ofANBC for the year 2018-19 as against the mandatory target of 8%.

Lending to Weaker Sections stood at 19500.03 Cr as on 31.03.2019 and constituted 12.23% of ANBC for the year 2018-19.

Lending to MSE-Micro stood at 13636.83 Cr as on 31.03.2019 and constituted 8.55% of ANBC for the year 2018-19.

Non Corporate farmer stood at 29449.64 Cr as on 31.03.2019 and constituted 18.47%ofANBC on quarterly average basis for the year 2018-19.


In order to enhance credit flow to agriculture and strengthening relationship with the farmers, the Bank is observing "Intensive Farm Credit Campaigns", every year during Kharif and Rabi seasons to extend timely and adequate credit to farmers.

Our Branches have observed "Accelerated Agri Credit Campaign" from 25.06.2018 to 25.09.2018. During the campaign period, our branches have disbursed a sum of 11242.21 Cr.

Branches observed "Mega Agri Credit campaign" from 12.11.2018 to 31.12.2018. During the campaign period, our branches have increased outstanding under agriculture by

1607 .Cr


Jewel loan has been implemented in 2384 branches as on March 19 against 2270 branches in March 2018. The outstanding balance in jewel loan is 29136.30 Cr as against the March 2018 level of 23571.30 Cr with an increase of 5565 Cr.


Self-Help Group (SHG) is a small voluntary association of poor people, preferably from the same socio-economic background. They come together for the purpose of solving their common problems through self-help and mutual help. SHG concept offers opportunity for participative decision making on conduct of meetings, thrift and credit decisions

The outstanding credit to SHGs stood at 4733.41 Cr covering 1.58 lakh SHGs as on March 2019 and increased by

697.81 Cr over March 2018 level of 4035.50 Cr. During the year 2018-19, the Bank had disbursed 3911.05 Cr to 1.00 lakh SHGs.

Microsate Branches:

To make available the benefit of SHG concept to scores of urban poor living in huts, slums and tenements and near the gullies in Metropolitan cities and Urban centers, specialized outfits that can serve as a "one stop shop", called Microsate Branches were established, for the entire financial needs of the poorer section.

The Bank has established 39 Microsate Branches exclusively to serve the SHGs. During the financial year

2018-19, credit amounting to 1067.63 Cr has been extended to 23716 SHGs through the Microsate branches. The total outstanding advances of these Microsate Branches stood at 1112.25 Cr covering 37212 SHGs as against the March 2018 level of 964.39 Cr, with an increase of 103.24 Cr over March 2018.


Bank is encouraging financing through Joint Liability Groups, with a view to render credit support to those category of farmers who do not possess proper land records/not having own lands. The outstanding credit to JLGs stood at 147.05 Cr covering 7710 JLGs as on 31.03.2019.

Weaker SectionAdvances:

Bank has been continuously surpassing the mandatory advance target set for the weaker sections which includes Small and Marginal Farmers, Artisans, Village and Cottage Industries, Scheduled Castes and Scheduled Tribes, Self Help Groups, etc.

SHG Loan disbursement to Minority, SC/ST Beneficiaries during SHG Month at Coimbatore on 29.01.2019

Credit outstanding to Weaker Sections stood at

19500.03 Cr as at the end of March 2019 and worked out to 12.23% ofANBC against stipulated norm of 10%.

Outstanding credit to SC/ST beneficiaries stood at 2293.97 Cr as on 31.03.2019.

Observance of SC/ST and Minority Credit Campaigns

Special campaigns were conducted for extending credit to Minority Communities. Advances to Minorities stood at 7931.50 Cr for the month ended March 2019 i.e. 11.82% of the total Priority SectorAdvances.

Capacity Building Initiatives:

Bank established RUDSETI Model Training institutes named as "Indian Bank Self Employment Training Institute" (INDSETI) in twelve centers viz., Chittoor, Cuddalore, Dharmapuri, Kancheepuram, Krishnagiri, Namakkal, Puducherry, Salem, Thiruvannamalai, Tiruvallur, Vellore and Villupuram. A total of 2118 training programmes have been conducted by the INDSETIs up to March 2019 benefitting 58912 individuals so far.

As per Ministry of Rural Development (MoRD) and National Center for Excellence of RSETIs (NACER/Bengaluru) the Annual Conclave of INDSETI (RSETI) Directors, was organized at IMAGE, Chennai on 21st of March 2019. Executive Director. Shri. M.K. Bhattacharya, Deputy General Manager (RBD/FI). Shri. N.K. Mishra, Shri. P.Santhosh, National Director of RSETIs, NACER/Bengaluru, Smt.Champakavalli, Project Director, NIRDPR/Hyderabad, Shri.Pitchiah, Director / National Academy of RUDSETI/Bengaluru and Shri.Vasudeva Kalkundri, Director/NACER/Bengaluru participated in the Conclave. The Conclave was inaugurated by Shri.M.K.Bhattacharya, Executive Director of our Bank. During the Conclave best performing Directors of INDSETIs were facilitated.

Shri Narendra singh Tomar, Union Minister for Rural Development and Panchayat Raj and Shri Raghubar Das, Chief Minister, Jharkhand presenting the award to Shri D Devaraj, GM (RBD&FI) and Shri P Aguilane, Director, INDSETI, Puducherry for the year 2017-18 in a function held at Ranchi on 05.05.2018.

Apart from the above exclusive initiatives towards capacity building, the Bank is already participating in Rural Training Centre, Karaikudi, Tamil Nadu (jointly with NABARD & IOB) and Andhra Pradesh Bankers Institute of Rural & Entrepreneurship Development - APBIRED, Hyderabad (jointly with Government of AP, NABARD & five other Banks). These two training institutes offer wide range of skill oriented training programmes with a focus on rural population.Atotal of 510 training programmes have so far been conducted by RTC, Karaikudi (benefitting 13754 members - up to March 2019) and 514 programmes by APBIRED, Hyderabad (benefitting 14537 members-up to March 2019).

Dr.APJAbdul Kalam Skill Development Training Institute:

Bank along with Swarna Bharat Trust, a service oriented Non-Governmental Organization (NGO) in Vijayawada, Andhra Pradesh and Koneru Lakshmaiah University (KLU), an autonomous University established a "Skill Development Training Institute" by the name Dr.APJ Abdul Kalam Skill Development Training Institute at Atkur Village, Krishna District, Andhra Pradesh for training and developing people and improving the skilled man power position by imparting quality training.

The Institute has conducted 49 programmes and trained 1065 candidates up to March 2019.

Amalgamation of RRBs in Tamil Nadu

In recognition of Indian Banks strong financials, predominant presence in the State and preference among a larger section of populace in Tamil Nadu, Indian Bank has been entrusted with the coveted responsibility of being Sponsor Bank for the amalgamated Regional Rural Bank. The amalgamated Regional Rural Bank namely "Tamil Nadu Grama Bank" has commenced its operation with effect from 01.04.2019.

Tamil Nadu Grama Bank has 630 branches and covers entire State of Tamil Nadu except Chennai district. Besides, there are about 800 Business Correspondents catering to the needs of the village populace. The Bank has a dedicated staff strength of 2281.

Tamil Nadu Grama Bank has a total business of 22568 Cr (Deposits 11258 Cr and Advances 11310 Cr).

Our MD & CEO Ms Padmaja Chunduru inaugurated the new TAMIL NADU GRAMA BANK via Video conference on 01.04.2019

Our Executive Director Shri.M.K. Bhattacharya announced the TAMIL NADU GRAMA BANK amalgamation to press and Media on 01.04.2019


As against the target of 3850 Cr (including Regional Rural Banks) allocated under Mudra Scheme, Bank sanctioned an amount of 3103.06 Cr, registering an achievement of 80.60%.

Under Mudra Scheme, Bank extended loans upto a limit of 10 lakhs to various manufacturing, service activities including weaving, transport, retail trade, small business and agriculture allied activities viz., pisciculture, beekeeping, poultry, livestock rearing, dairy, fishery, agri clinics, agri business centers, Food & Agro processing etc.,


The scheme was launched by Honble Prime Minister on 28.08.2014 in New Delhi for ensuring access to financial services and timely & adequate credit to the excluded sections.

Allotment of Sub Service Areas (SSAs) by SLBCs and coverage by our Bank under PMJDY:

Various SLBCs have allotted 2975 SSAs and 2023 Urban wards to our Bank under PMJDY. All the 2975 SSAs are provided with banking services by our Bank. Of these, 2517 SSAs are provided with banking services through Bank Mitrs (Business correspondents) and 458 SSAs through Brick and Mortar branches already functioning in the SSAs.

Highlights of our Banks performance under PMJDY:

Since the inception of PMJDY on 16.08.2014 our Bank has opened 37.78 lakh Basic Savings Bank Deposit Accounts (as on 31.03.2019) and also mobilized 594.86 Cr.

Under PMJDY, our Bank has offered overdraft to 2, 53,815 eligible account holders to the tune of 59.86 Cr. Of which 89,036 BSBD account holders have availed the limit amounting to 17.60 Cr. Facility of an overdraft to every BSBD account holder would be considered after satisfactory operation / credit history of six months. Our Bank has automated the overdraft facility and made available through ATMs of our Bank to the eligible PMJDY account holders.

RuPay Cards have been issued to 37.44 lakh BSBD Account holders (as on 31.03.2019).

All the SSAs allotted to the Bank are covered with either brick and mortar branch or with Bank Mitr.

All the Bank Mitrs are provided with inter operable Micro ATM devices as per the IBAstandard (1.5.1)

An average monthly transaction done per BC is more than 1100 during the FY 2018-19, which is one of the best in the industry.

Aadhaar Enabled Payment System (AEPS) inter-operability facilities are enabled in all POS machines deployed in our SSAs. All BCs are doing AEPS transactions and during the FY 2018-19, 2.95 CroreAEPS transactions (both financial and non-financial) to the tune of 4286.91 Cr have been done by the BCs. Customer of any Bank can transact with Indian Bank BC.

Performance under Jan Suraksha Yojana:

In the second phase of PMJDY, Honble Prime Minister launched three Social Security Schemes viz., Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – a life insurance scheme, Pradhan Mantri Suraksha Bima Yojana (PMSBY) – an accidental insurance scheme, Atal Pension Yojana (APY) – pension scheme in May 2015 for the under privileged sections of the society. The performance of our Bank under the Schemes as on 31.03.2019 is furnished below.

Name of the Scheme No. of customers covered
APY 5,78,151
PMJJBY 10,06,446
PMSBY 22,76,861
Total 38,61,458

In our Bank, under PMJJBY 4221 claims to the nominees of the insured to the tune of 84.42 Cr and under PMSBY 995 claims to the nominees of the insured/insured to the tune of 19.76 Cr settled to the nominees of our Bank customers.

Performance under RuPay Insurance claims

PMJDY account holders are being issued with RuPay debit cards having inbuilt accidental insurance cover of 1.00 lakh and life cover of 30,000/- for the customers who opened accounts between 15.08.2014 to 26.01.2015. Under RuPay Accidental insurance 164 claims and under RuPay life insurance 120 claims settled to the nominees of our Bank customers.

Payment of pension under Social Security Scheme in Tamil Nadu:

In the state of Tamil Nadu, under Social Security Scheme, Old Age pension is being paid to beneficiaries, in the villages covered under Financial Inclusion; through Bank accounts using Information and Communication Technology (ICT) based Smart Card enabled Business Correspondent (BC) Model, since July 2012. As on date pension is being disbursed to 6.08 lakh beneficiaries every month through our Bank Mitrs in Tamil Nadu.


Shri Rajiv Kumar, Secretary, DFS, Ministry of Finance, Govt. of India honoured our MD&CEO with the award for "Leadership Capital" campaign for MD&CEOs during the Felicitation Programme held at New Delhi on 23rd January 2019. Bank emerged as No 1 among all banks with 382% achievement against the target.

Our Executive Director Shri M.K.Bhattacharya received

"Makers of Excellence 2.0" award at the hands of Shri Hemant G Contractor, Chairman, PFRDA during the felicitation function held at New Delhi on 16.11.2018 in the presence of Shri Madnesh Kumar Mishra, Joint Secretary, DFS. During the campaign Bank sourced 33,940 enrolments against the target of 15,000 and increased Banks per branch average by 13 ( the highest among all banks).

Big Believers campaign th - 28th

Under the (11 Feb 2019) for EDs of banks, Bank sourced 17,853 APY accounts which is 1.8 times the target and our Executive Director Shri M.K.Bhattacharya emerged as winner for Exemplars award.

Shri D Devaraj, GM (RBD&FID) received "Best Performing GM" award under APY. During the Exemplary Eight (11th -31st Jan 2018) campaign, Bank sourced 17,958 APY accounts against the target of 5,000 with 359% of achievement.

PFRDA honoured five of our Zonal Managers (Surat, Puducherry, Tiruvannamalai, Tirupati and Tiruvarur) with "Rise Above Rest" awards. The minimum target for zones is increase of 5 per branch, 23 zones qualified. During the campaign Bank sourced 25,837 enrolments and increased Banks per branch average by 10 which was the highest among all banks.

Our Bank reached per branch average of 86 against the Q4 target of 60 set by PFRDA, accordingly Nodal officer of Bank Shri N K Mishra (DGM-RBD&FID) emerged as winner under Game-changers.

"Lead to Leap" award to Nodal officer of Bank ShriAsif SA (AGM-FI). Our Bank reached per branch average of 37 against the half yearly target of 30 set by PFRDA.

Our Bank reached per branch average of 69 against the Q3 target of 45 set by PFRDA, accordingly nodal officer of Bank Shri V M Venkatachalam (CM-FI) received

"Outperformer" award.

Award from NABARD: Honble Chief Minister of Tamil Nadu Shri Edappadi K. Palaniswami honoured Shri.M.K.Bhattacharya, Executive Director of the Bank with an award for the Banks best services rendered under Financial Literacy initiatives Tamil Nadu state.

IBA Award for Best Financial Inclusion Initiatives:

Indian Banks Association (IBA) honoured Bank with "Runner-up" award for "Best Financial Inclusion Initiatives". Shri D Devaraj General Manager (RBD/FID) received the award at the hands of Shri Sunil Mehta, Chairman, IBAon 20th February 2019 at Mumbai.

ASSOCHAM Social Banking ExcellenceAwards:

Winner -Agricultural Banking

Winner - Priority Sector Lending in categories other than agriculture

Winner - Technology

Winner - Overall: Best Social bank

Bank received all the awards at Mumbai at a function held on 26.02.2019. Bank emerged Winner in all the four categories among mid-sized banks.


For giving focussed attention, separate MSME Department is in place which takes care of entire MSME portfolio. Bank is having 18 Ind MSME Branches catering exclusively to MSMEs, 76 Specialized MSME Branches in which more than 60% of advances are to MSMEs & 500 MSME Focus branches to garner more MSME business for the Bank.

M/s Livenza Granito LLP, Morvi- a Ceramic Tile Unit Standing example of Banks pre-eminence in Cluster financing-This Ceramic Tile Unit scripts success story within 18 months of commencement.

Banks exposure to Micro, Small & Medium Enterprises grew by 14.53% from 28,854.17 Cr to 33,046.42 Cr during 2018-19.

Banks exposure to Small Enterprises grew by 25.69% during the year.

M/s. KG Denim Limited Company, Coimbatore A premier denim and apparel fabric manufacturer financed by Bank.

Lending to Micro Enterprises has grown by 20% (in number of enterprises) during the year.

Bank including Regional Rural Banks has sanctioned MUDRA Loans for 3103.06 Cr during the year to around 1.50 lakh beneficiaries.

3692 MSMEs benefitted under Stand up India Scheme to the tune of 783.31 Cr from our Bank over a period of three years. Stand-Up India scheme is for promoting entrepreneurship among SC/ST and Women entrepreneurs.

M/s.Technico Industries

Bank stands in support for several decades behind the sustained growth and success of this four -decade old high-class automative components manufacturing company.

Bank alongwith SIDBI and four Public Sector Banks invested in a fintech company and developed Contactless Banking platform – This enables the MSMEs to submit their loan application and get approval within 59 minutes, online without any manual intervention. Bank has accorded on-line approvals and regular sanctions through this platform.

M/s. Shivalik Bimetal Controls Ltd.

Bank is behind the sustained success of one of the leading manufacturers of Thermostatic Bimetal/Trimetal strips.

Bank is proactive in designing Structured Loan products to suit the needs of MSMEs including Doctors, Contractors, Traders etc. During 2018-19, four such products were introduced viz., IND-SME Mortgage, IND SME Vehicle, Ind Tourist Homestay and IB BYST.

Memorandum of Understanding (MOU) entered with Bharatiya Yuva Shakti Trust (BYST) to promote entrepreneurship among youth and for financing under IB BYST – Entrepreneurship Development program.

Bank has approved 27 cluster specific schemes like

Textile cluster at Ichalkaranji

Ceramic cluster at Morvi,Ahmedabad

MSME cluster at Padi, Chennai

Textile manufacturing & wholesale trading cluster at Surat

Automobile cluster at Hosur

Hosiery cluster at Ludhiana

Cycle parts and auto parts cluster at Ludhiana

Light engineering goods / Readymade garments cluster at Karnal etc.

Bank is on-boarded in all the three RBI approved TReDS (Trade Receivable Discounting Systems) platforms and operations have commenced during the year.

Implemented Interest subvention Scheme for incremental growth in MSMEs, announced by Government of India.

Bank has opened MSME Centralized Processing Units at 8 centres, pan India which improved the loan appraisal mechanism and turnaround time.

To ease the stress faced by MSME borrowers in serving the loan interest/ instalment due to internal/external reasons, a liberalized Restructuring Policy for MSMEs has been implemented.

Bank participated actively in MSME support and outreach campaign held in select 104 districts, pan India. MD & CEO was the State Co-ordinator for Tamil Nadu during the campaign and State had secured first, second and third position among the States, in many deliverables extended to MSMEs.

SME Knowledge Series / Skill Building Program in coordination with Dun & Brad Street conducted in 10 centres, pan India, for augmenting fresh MSME clientele.

Bank has been conferred with award "Micro Lending –Winner" in the 6th SME Excellence Award – 2018 conducted byASSOCHAM.


Our Prestigious Corporate Credit customers


Modification in Home Loan and Other Retail Products:

To make Retail Loan Products more competitive, market friendly, to be in tune with the ever changing market dynamics without compromising the asset quality, Bank has brought in many changes / improvements in Home Loan & other Retail Loan Products.

Empanelment of Field VerificationAgencies:

As a supporting measure, to strengthen operational control and to improve the TAT, Bank is in the process of empanelling Field Verification Agencies for carrying out the job of verification of supporting documents submitted along with loan requests by the applicants.


Bank came out with various marketing strategies involving active participation of staff members also. One such initiative is contest "IND SITARA" which was launched on 01.12.2018–for the period of Four months from 01.12.2018 to 31.03.2019. The initiative is aimed at encouraging staff members by felicitating in the "IND SITARA MEET", awarding merit certificate / trophies / IND SITARA BADGE for sourcing viable Home Loan leads.

Staffs were assigned targets based on the classification of the branches such as Metro, Urban, Semi-urban and Rural. Performance during the campaign period was sizeable evidencing appreciable participation of the staff members in growth of Home Loan Segment.

The performance during the campaign is given below:

No of Leads Generated 3829
Amount 897.05 Cr
Of which, No. of loans sanctioned 2791
Amount sanctioned 717.82 Cr

Home Loan Campaign:

Performance under two Home Loan Campaigns observed during the FY 2018-19

Campaign period Sanctions Disbursements
16.08.2018 to 30.08.2018 862.45 601.45
15.10.2018 to 30.11.2018 917.28 643.32

Festival Season Offer

Festival Season Offer is a marketing initiative where bank came out with lucrative offers like offering concession in interest rates / waiver in processing charges thereby encouraging Salaried Class borrowers to invest funds in acquiring their dream house and Two / four Wheelers. Indian Bank observed Festival Season Offer from 16.08.2018 till 31.03.2019 with concessional Rate of Interest for Vehicle loan and waiver in processing charges for the Home Loan and Vehicle loan products.

Monitoring SMAAccounts

Bank deployed dedicated staff for giving more impetus in arresting slippages in asset quality of RetailsAssets.

Through regular, consistent approach and with providing required support to branches, Bank was successful in reducing slippages in stressed accounts.

Expansion of IRPC Concept to new Zones

As of now there are 24 Ind Retail processing Centres (IRPCs) functioning across India covering

20 Zones & 716 Spoke Branches. These are the dedicated processing centres for processing Home Loans & Mortgage Loans.

IRPCs performance contributes 26% of the total sanctions under Home Loans.

With the success of the IRPC concept in existing centres it is proposed to open 13 more IRPCs in the below mentioned centres:

Proposed Centres Proposed Centres
1 Amaravati 8 Ludhiana
2 Erode 9 Poonamallee
3 Jaipur 10 Thiruvananthapuram
4 Karnal 11 Tirunelveli
5 Krishnagiri 12 Vijayawada
6 Kumbakonam 13 Visakhapatnam
7 Lucknow

Of the above, Jaipur, Ludhiana and Erode were opened during the year and at other centres the same will be opened shortly.

DSA/HLC Performance:

Another marketing strategy carried out by Bank is empanelment of Direct SellingAgents (DSA) / Home Loan Councillors (HLC). Zones are permitted to empanel DSA/ HLCs and generate Home Loan leads. Through leads generated by DSAs/HLCs, Home Loans were sanctioned to the tune of 1078.78 Cr from 01.04.2018 to 31.03.2019. Commission to the tune of 4.75 Cr (subject to maximum of 50000/- based on the loan amount sourced) paid to DSA/ HLC upto 31.03.2019.

Education Loan:

Bank introduced new Educational Loan products and offered loans with finer terms and conditions for students pursuing their education from identified premier institutions-Out of the total fresh sanctions of

536.74 Cr under Educational Loan portfolio,

206.45 Cr were sanctioned to the students of Premier institutions.


As part of Banks Credit Risk Management process, review of accounts under Loan Review Mechanism (LRM) have been carried out at various levels including review of borrowal accounts sanctioned by various Committees at Corporate Office and Zonal Offices.

During the year 2018-19, 58.80 percent of standard non-food credits outstanding have been brought under LRM and Credit Audit as against minimum coverage requirement of 50 percent as per LRM policy.

Special Mention Accounts (SMA) were monitored on a daily basis and followed up effectively for regularization. The Standard Asset Monitoring Committee comprising of department heads of functional credit departments at Corporate Office reviewed all SMAaccounts every month.

For follow up of SMA, mobile app has been developed to assist field level functionaries for monitoring and recovery.

Large borrowal accounts with deteriorating asset quality from "SMA-0" level reported to RBI under CRILC were closely monitored and appropriate remedial action taken as per guidelines contained in the revised Framework for Resolution of stressed assets.

In order to have a mechanism for early detection and reporting of frauds, a policy for Monitoring early warning signals and Red flagging of Accounts in dealing with loan frauds has been formulated and approved by Board. Software for system based identification of accounts for monitoring and reporting has been developed and put in place.

All the Zonal level sanctions were scrutinized and adherence to sanctioned terms and conditions were placed to appropriate committees.

Coordinated with Credit Information Companies and quality of customer information upload has been improved.


Bank deployed prudent credit monitoring tools successfully, with continuous and consistent focus on quality of assets, following a system-driven identification of NPAaccounts (Non-PerformingAssets) approach since June 2010. Monthly flagging of NPAs is in effect from February 2016.

Timely actions for recovery/ upgradation of fresh NPA accounts are undertaken and stressed accounts are regularly followedup to minimize the slippages by identifying and monitoring Special Mention Accounts (SMA).

Bank recorded good performance in recovery and reduction of fresh NPA during 2018-19. Various recovery mechanisms like Lok Adalat, Negotiated Settlements through One Time Settlement (OTS) and recovery measures through DRT / SARFAESI/NCLT have resulted in improved recovery performance. Zones/Branches are aggressively implementing all recovery measures including classification of the accounts as wilful defaulter/non-cooperative borrower, invocation of personal guarantee, filing of Petition under Insolvency and Bankruptcy Code (IBC) before National Company Law Tribunal (NCLT), Transfer of pledge of shares, etc

Under the SARFAESI Act, during the year, 1049 properties with reserve price amount of 1339.79 Cr brought for sale and 159 properties sold with sale price of 87.28 Cr. Through Private Treaty mode 38 properties were sold with sale price of 32.06 Cr.

Bank actively participated in all National Lok Adalat conducted by NALSA during the year and also organized various Lok Adalat at Mandal Level. A total number of 15,888 pre litigation accounts were referred to Lok Adalat involving an amount of 218.66 Cr. 2850 accounts were settled with settlement amount of 39.73 Cr and spot recovery to the tune of 8.13 Cr was made.

In the intensive recovery camps involving door to door campaign held periodically during the year ended 31.03.2019 by all the branches across the country on cluster basis, cash recovery to the tune of 204.54 Cr was made.

In respect of Bad Debts and Written off (Technically Written off) accounts, an amount of 192.88 Cr was recovered during the year.

In line with the changing economic scenario, Recovery Policy of the Bank has been fine-tuned and frontline officials sensitised for improving recovery performance. To enable end- to-end tracking and also to simplify the OTS process, Online OTS software application has been introduced to handle proposals upto 1 Cr. Besides, during the visit of officials from Recovery Department to Zones, the importance of reduction in provision by way of increasing recovery and upgradation in Fresh NPAs/Doubtful accounts was emphasized.


Bank has Corporate Agency Arrangement (CAA) with United India Insurance Co. Ltd. (UIIC) for Non-Life/General/Health Insurance business and with LIC of India for Life Insurance business. For Mutual Fund distribution, Bank has tie-up arrangements with UTI Asset Management Co. Ltd, Reliance Capital Asset Management Ltd., SBI Funds Management Pvt. Ltd., TATA Asset Management Ltd and DSP Mutual Fund.

Bank offers various group insurance products on optional basis to its customers through tie-up arrangements with the Companies as mentioned below:

"IB Jeevan Kalyan & Jeevan Varishta" through LIC of India covering death due to any reasons

"IB Chhatra" through UIIC covering death due to accidents

"Arogya Raksha" through UIIC extending Group Mediclaim Insurance for account holders

"IB Yatra Suraksha" through UIIC extending Group Travel Insurance for domestic travel other than by air

"IB Griha Jeevan" through LIC of India and "IB Home Suraksha" through Kotak Life covering Home Loan borrowers

"IB Jeevan Vidya" through LIC of India and "IB Vidyarthi Suraksha" through PNB Met Life covering Education loan student borrowers


Banks risk management framework is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. An independent Risk Management Department is functioning for effective Enterprise-Wide Risk Management and responsible for assessment, monitoring and reporting of risk exposures across the bank. All the risks which the Bank is exposed to are managed through the following three Committees viz,

Asset Liabilities Management Committee (ALCO)

Credit Risk Management Committee (CRMC)

Operational Risk Management Committee (ORMC).

These committees work within the overall guidelines and policies approved by the Board and Risk Management Committee of the Board.

Bank has put in place various policies to manage the risks. To analyze the enterprise-wide risk and with the objective of integrating all the risks of the Bank, an Integrated Risk Management policy has also been put in place. The important risk policies comprise of Credit Risk Management Policy, Asset Liability Management Policy, Loan Policy, Market Risk Management policy, Integrated Treasury Management Policy, Operational Risk Management Policy, Internal Capital Adequacy Assessment Process (ICAAP) Policy, Stress Testing Policy, Collateral Management Policy, Disclosure Policy, Reputational risk management Policy and Strategic Risk management Policy.

All the policies are reviewed at a minimum on an annual basis by Risk Management Committee (RMC)/Board. In order to disseminate the risk management concepts and also to sensitize the field level functionaries, the relevant policies were circulated to the branches, in addition to imparting training at the Banks training colleges.

Management of risk on an ongoing basis is carried out by compiling Risk profiles for Credit risk, Liquidity risk, Market risk and Operational risk on a quarterly basis and assessing the variation in direction and magnitude of the parameters set for each risk.

Credit Risk:

Risk Management Systems are in place to identify and analyze the risks at an early stage and manage them by setting and monitoring prudential limits besides taking other corrective measures to face the changing risk environment.

Scoring model:

Bank has developed entry level scoring model. All the fresh sanctions coming under personal loan products are subjected to entry level scoring

Asset Liability Management:

Asset liability Management allows the Bank to measure and monitor risk exposures which may arise both from liquidity and interest rate risk on its balance sheet. This allows the Bank to provide suitable strategies for asset liability management.

Market Risk Management:

Market risk is the possibility of loss caused by changes in the market variables. The Bank for International Settlements (BIS) defines Market risk as "the risk due to which the value of on or off balance sheet positions will be adversely affected by movements in equity and interest rate markets, currency exchange rates and commodity prices". Thus, Market Risk is the risk to the Banks earnings and capital due to changes in the market level of interest rates or prices of securities, foreign exchange and equities, as well as the volatilities of those changes. The objective of market risk management is to assist the business units in maximizing the risk adjusted rate of return by providing analytics driven inputs regarding market risk exposures, portfolio performance vis--vis risk exposures and comparable benchmarks.

Operational Risk:

Operational risk is now the focus of intense interest among industry participants, regulators and other stake holders. The Bank has put in place Operational Risk Management Frame work (ORMF) and Operational Risk Management Systems (ORMS) to ensure effective governance, risk capture and assessment and quantification of operational risk exposure. Operational risk is well managed by using appropriate qualitative and quantitative methods and established internal control systems in day to day management processes and adopting various risk mitigating strategies. The risk perceptions in various products/processes are critically analysed and corrective actions if required, are initiated.

Operational risk is also monitored through analysis of credit spurt and analysis of frequency and severity of operational losses.

Bank has put in place frameworks for Risk Control Self Assessment (RCSA) and Key Risk Indicators (KRIs). Risk and control self-assessment is used to identify key operational risk and assess the degree of effectiveness of the internal controls. Bank has been taking steps to strengthen the RCSA and KRI by reviewing and improving the coverage area for management of Operational risk

Basel III Capital Regulations:

The Bank has fairly high level of Common Equity Tier 1 Capital and also has headroom available for raising all forms of capital in case of need. The Bank has adopted RBI guidelines on the Basel III capital regulations with effect from April 1, 2013. To ensure smooth transition to full Basel III, appropriate transitional arrangements have been made for full implementation as on March 31, 2020.

The Basel III capital rules also require an enhanced set of disclosures on the components of Capital Adequacy Ratio (CAR) which are published on quarterly basis on Banks website. Bank is also disclosing leverage ratio and Liquidity Coverage Ratio (LCR) Framework.


Manpower Position

The position of manpower in the Bank as on 31.03.2019 is as follows:

OFFICERS 10824 3173 2292 842 7690 3134
CLERKS 7657 2490 1558 321 4393 3264
SUB STAFF 1014 292 337 50 897 117
SWEEPERS 32 5 23 0 18 14
TOTAL* 19527 5960 4210 1213 12998 6529

(* Domestic excluding Part Time Sweeper)

Recruitment Drive

Based on manpower assessment exercise conducted, Bank had undertaken recruitment of manpower in various categories in line with emerging business needs.

During the year, Bank recruited 211 Probationary Officers and 119 Specialist Officers in different functional areas. 634 clerks and 79 the year. Sub-staff were recruited during

Welfare measures for SC/ST/OBC/PWD employees

As per Government of Indias guidelines, reservations are provided to Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and Persons with Disability (PWD) candidates in Direct Recruitment. Reservations for SC/STs in promotions are provided as per Government guidelines.

The SC/ST Welfare Cell/Reservation Cell at CO/HRM ensures prompt disposal of grievances / representations (if any) of SC/ST employees. AGeneral Manager is functioning as Chief Liaison Officer (CLO) to look after the interest of employees belonging to SC/ST and another General Manager is functioning as CLO for OBC employees.

Upgradation of Skills

The Banks training infrastructure constitutes the State-of-the art Training College at "Indian Bank ManagementAcademy for Growth and Excellence" (IMAGE) and nine Staff Training Centers across the country enabling the staff and the officers to upgrade their skills.

During the year 6938 Officers, 2213 Clerks and 215 Sub-staff members were trained through internal training system. Also 311 officers and Executives attended various training programmes at external institutions.

Industrial Relations

The Top Management of the Bank interacts with the leaders of Employees Unions, Officers Associations and their response is positive resulting in desired growth in business and cordial Industrial Relations.

The following policies/schemes were reviewed/ formulated for the benefit of employees.

Review of HRM Policies

Approval of CRS PLencashment

Increased limit for Leased accommodation

Flood Relief loan for Kerala

Improvements in Staff welfare schemes –

Eye Check up – limit for number of times that facility can be availed is removed

Increase in limit for Memento to retirees

Payment of arrears of pension 1998 – 2002

Review of Promotion Policy

Review of Cell Phone Scheme

Amount of Festival advance fixed uniformly at 1 month gross salary irrespective of date of joining.


SAP HR software is being put to use for HR related activities. Focus is now on centralizing all HR activities. Centralised Biometric attendance system is in place. As a measure of extending technological advancement to the entire workforce and in aiming to achieve a paperless processing of HR related issues, a cohesive website for Human Resources Management through Intranet has been hosted. A slew of measures have been initiated to facilitate quicker disposal of HR matters – relating to both serving and retired staff.

Staff Welfare Measures

The Central Welfare Committee of the Bank constantly reviews the welfare schemes available to the employees and improvements are being made based on their recommendations. At present Bank is contributing 20 Cr towards staff welfare schemes annually.


Customer Service is the backbone of any service industry, especially banking. With the entry of small payment banks and various local area banks, the competition in the banking industry is very high now and there is huge pressure on the part of the PSBs to retain/improve their market share. Only by improving the customer service and making innovations in technology products, banks can achieve this goal/survive in the industry.

Modes of Grievance redressal:

Complaint register maintained at all the branches.

Complaint cum suggestion box made available in the banking hall of all the branches.

Integrated call centre available 24X7 with Toll free number 180042500000.

Customers can lodge complaint through the following mail IDs viz:

Facility to message complaint through SMS to 56677.

Complaints received through all modes by Branches/Zones/Corporate Office and not resolved within 24 hours are registered in the Standardised Public Grievance Redress System (SPGRS), an in-house software developed with a flow of several unique features.

Appointment of Internal Ombudsman;

As per the directions of Reserve Bank of India, an Internal Ombudsman has been appointed with effect from 17.02.2016 to strengthen the Internal Grievance Redressal Mechanism and to ensure that grievances are settled in order to strengthen customer confidence.

All complaints where the resolution is either negative or partially negative are internally escalated to the Internal Ombudsman of the Bank for necessary action as per the Scheme.

Initiatives taken to improve the customer service

E Lounges have been opened at various centres to reduce the transaction time/foot fall in branches. Besides Passbook kiosk/BNA have been provided at branches where the volume of transaction is very high.

Branches advised to open special counters for senior citizens where number of pensioners are more.

Introduced several new technology products to carry transactions without visiting the branches and technology awareness campaign arranged at selected centres to educate the customers.

Displayed Comprehensive notice board at all branches, furnishing vital information to the customers.

Staff Meeting and Joint Customer Service Committee Meetings conducted every month to elicit grievances from customers of all walks of life.

All complaints are taken up with the Branch/Zone/Banks CBS centre for redressal. Nearly 1/3rd of the complaints are redressed within 24 hours (open and close category), while many of other complaints are redressed within an average turn-around time (TAT) of about 5 days against the maximum TAT of 21 days allowed as per SPGRS.

Special training program which included Stress Busting Techniques has been conducted at all Staff Training Colleges and IMAGE for all the staff against whom some customer complaints have been received.

Incognito visits, a technique used by regulatory bodies like RBI, BCSBI etc was put to use to verify the level of customer service, display of various mandatory notices, attitude of the staff, customer friendliness, adherence to the time norms and overall customer satisfaction.

As a result of proactive steps taken by the bank, the Annual rating given by BCSBI has been significantly improving over the years.

BCSBI FY 2014-15 FY 2015-16 FY 2016-17
Rating % 67.3 74 78

Customers Day:

To interact with the customers and have an update on the customer expectations/feedback, Customers Day was celebrated uniformly at all the branches across the Globe on 29.08.2018. Customer day/Customer meets are being celebrated since 2012, coinciding with Banks Founding Day during the month of August every year. The feedback/suggestions received from the customers have been taken up with the Branches/Zones/User Departments for implementing the same as per the feasibility and norms.

Regulatory Meetings/Notes:

Regulatory/mandatory meetings relating to Customer Service were held as per the schedule.

Review of customer service is placed to the Customer Service Committee of the Board as per calendar of Reviews.

RegulatoryAuthority - Observations:

No awards have been passed by the Banking Ombudsman other than some directions issued. No adverse remarks were made by RBI in AFI and BCSBI in itsAnnual Code Review.


A separate desk attached to Customer Service Cell at Corporate Office is handling the applications and first appeals/second appeals received by the Bank under the RTI Act. Since its inception, Bank has been adopting a single window approach as suggested by the Parliamentary Committee on implementation of RTI Act. Online facility for filing of RTI application is also made available (Indian Bank being the first among the PSB to introduce this facility)

All the applications are disposed off within the stipulated time period

No awards against the bank in the year 2018-19


Turnover in Foreign Exchange business of the Bank amounts to 35,531.48 Cr during the year. Of this, export and other inward remittances amounts to 12,428.74 Cr, while imports and other outward remittances amounts to 23,102.74 Cr.

During the year, the total turnover in the interbank forex market amounts to 2,79,581.51 Cr.

102 branches of the Bank are authorised to handle forex business. The Bank has Correspondent arrangements across the globe.

FCNR/NRE Deposits: Non Resident Indian (NRI) Deposits recorded a growth of 6% per cent at

10282.88 Cr as compared to 9,700.62 Cr in the previous year.


Enterprise remittances scheme from Singapore offers instant credit to customer accounts in India with rupee equivalent of the foreign remittances within minutes of receipt at Singapore Branch and an SMS message is forwarded to the remitter at Singapore informing the credit. The facility is available on all days of the week.

Other remittance facilities offered by the Bank for NRIs include "Xpress Money", "Money Gram", "Western Union Money Transfer", "Ria Money Transfer", besides normal SWIFT based Money Transfer across the globe.

Electronic funds transfer arrangement is in place with 6 Exchange Houses viz., M/s. UAE Exchange Centre LLC –Abu Dhabi, UAE Exchange Centre WLL – Kuwait, Al Zaman Exchange WLL – Qatar, GCC Exchange – Dubai, Belhasa Global Exchange – Dubai,Al Dar For Exchange –Qatar. Remittance arrangement with M/s Al Rajhi Bank, Saudi Arabia has already been launched and running successfully.


The Bank has three foreign branches located at Singapore, Colombo and Jaffna. Total Deposits and Advances (gross) of foreign branches as on March 31 2019 was 6,838.97 Cr and 7,551.24 Cr respectively.

Singapore branch established in 1941 has carved a niche by offering a variety of banking services using the latest technology and enjoys enormous goodwill and customer loyalty. The branch is presently maintaining its business in two accounting units - Domestic Banking Unit (DBU) for Singapore Dollar business and Asian Currency Unit (ACU) for business in currencies other than Singapore Dollar.

Colombo branch established in the year 1932 has active market presence extending trade finance. The Foreign Currency Banking Unit (FCBU), Colombo is engaged in offshore banking operations.

Jaffna branch reopened in 2011 plays a crucial role in the economic development of the Region.

Technology and Digital Initiatives:

Customer Touch Points:

Total number of Branches and ATMs as on 31.03.2019 is 2927 and 2849 respectively. This includes 2191 onsite ATMs, 653 offsite ATMs and 5 mobile ATMs. The total number of

BNAs as on 31.03.2019 is 1043. This includes 1000 onsite BNAs and 43 offsite BNAs. During the year 2018-19, 67.85% of transactions were migrated from Branches to alternate channels as a digitization process.

Bank stands the highest among top ranked RuPay platinum card issuers in India. Bank has been conferred with second highest position among Public Sector Banks and fifth highest, among all Banks in India, in terms of ATM transactions. All magnetic stripe cards were replaced with EMV chip cards during the FY 2018-19, and currently the entire card base consists of EMV Chip-Cards.

481 Passbook Kiosks have been installed and 50% transactions migrated from branch to self service kiosks

Digital Initiatives:

Successfully implemented the newly launched PM-Kisan Scheme of Government of India, as a sole Banker for Tamil Nadu and Puducherry. A title of second largest Bank in processing the payment was bestowed upon the bank, under the scheme.

Incentivizing Customers for Promoting Various Merchant Payment Modes

POS terminals were supplied @ Zero rent for new Current Account customers for a period of 6 months, wherein the merchants carrying out transactions above 5 lacs per month, were benefitted with Zero POS rentals

BHIM AADHAR PAY - New Digital Payment Platform rolled out during 2017-18, gained momentum during the year. Biometric Finger Print Scanner Device for Bhim Aadhar Pay, was supplied at Nil Cost to acquaint customers with the merchant payment mode.


Enhanced loyalty points offered for new products -

IB Freedom (Current Account Product) and IB Surabhi (Savings BankAccount for women)

Revamped Credit Card portal with additional Features

Provision to view unbilled transactions, enabling modification of phone number and email id, extending option for transacting in international currencies, downloading statements etc.

Credit Card customer complaint portal was re-launched with additional security features.

Digital Campaigns:

Frequent Digital Campaigns were conducted during the year 2018-19 across all Zones with focus on increasing customer awareness about digital products and preventive measures to be adopted for secured digital transactions.

Digital VillageAdoption Fortnight

In order to reduce the digital divide that prevents rural villages from harnessing the full benefits, delivered by information and communication technologies, 190 villages (5 Per Zone) were identified for complete digital conversion.

The following activities were conducted:-

a) Banking Services organized for all villagers

b) Aadhaar Enrolment Camps set up and E-KYC based account opening carried out

c) Training on Digital products provided for creating awareness about digital products

d) On-boarding of Merchants in the village on digital channels such as BHIM, BHIMAadhaar Pay, PoS.

Other Customer Centric Initiatives:

1. Bharat Bill Payment System (BBPS)

An integrated bill payment system was launched offering interoperable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment.

2. IB COLLECT PLUS - Online Collection facility for institution with/without website

Facility made available for customers to collect various types of fees/ charges online, using various modes viz., Credit card, Debit card, UPI, Wallet and other banks net banking facility. Customized report to customers provided for easy reconciliation. Front end support was provided for online collection of fees/charges through payment gateway as a service to the Corporate/ Institutions, not having their own website.

3. IndPAY – Multilingual MobileAPP

Banks Mobile APP, IndPAY is now made available in 5 languages (viz. English, Tamil, Malayalam, Hindi and Marathi) for customer convenience.

4. 100% migration to EMV Chip cards

To provide customer convenience and comply with recent directions of RBI, magnetic stripe cards are 100% replaced with EMV chip cards. Non-Personalized EMV Chip Based Insta cards also made available for issuing over the counter to customers.

5.Acceptance of GST Payments from customers

Bank is authorized to collect GST from the customers. Customers can pay GST online through Banks Net-banking site besides acceptance of payment over the counter at branches in Cash/Cheque/DD.

6. Opening of online saving account IB-DIGI

Bank has enabled online facility for opening of Savings Bank Account through Banks website/Mobile App using Aadhaar Based OTP.

7. IB V collect Plus - Virtual Account Collection with Validation and Real time response facility

IB V Collect Plus Product enabled with the capability to verify and validate the Remitter ID /Amount details for acceptance of remittance, combined with Real Time Credit Response to the Institution.

8. TReDS–Digital Discounting of trade receivables for prompt encashment

With a view to address the critical needs of MSMEs i.e. the twin issues of promptly en-cashing receivables and eliminating credit risk, a new mechanism of discounting trade receivables digitally, has come into existence called "TReDS platform". This mechanism is expected to be a catalyst in the growth of MSMEs by bringing in transparency in the business eco-system.

9. MSME Loan in 59minutes

Our Bank, in line with recommendations of PSB Manthan, promoted a digital contactless banking platform i.e. a web portal has been provided by Government of India for enabling MSME entrepreneur to submit his/her loan application for MSME unit online and get in-principle approval, from a Bank of their choice (available in the platform) within 59 minutes.

10. NewLook Internet Banking

New look Internet Banking website launched with value added features viz., "Customize your quicklinks" wherein the customers can select upto 8 frequently used options for easy navigation and convenience of banking. For providing the ease of use to the customer for low value fund transfer or for the purpose of one time fund transfer to beneficiary accounts, EasiPay option is made available in Netbanking application. Through EasiPay facility, the customer can transfer funds to any third party account without the need of adding beneficiary, subject to a maximum of 5000/- per day (cumulative).

11.Aadhaar seeding through OTP in Bank website.

Customers who wish to seed their Aadhaar in account, can visit Banks website -> "OnlineAadhaar seeding link" and seed aadhaar number to their SB account for DBTL benefits using UIDAI OTP authentication.

12. New Bank Website

Banks official Website has been revamped with a new look and feel, as per the current industry standards.

13. GSTN Invoice

Customers can download the GSTN invoice details from the online portal for GSTN Invoice by providing GSTN number. Customer will enter CIF Number, Account Number, captcha and the OTP received in their registered mobile number, before providing the GSTN number.

14. Net / Mobile Banking Complaints Portal

An exclusive portal for addressing Net/Mobile Banking complaints related to e-banking (Net/Mobile Banking) has been put in place. Customers can raise complaints through this portal. Depending upon the category of the complaints, it will be assigned to the concerned department, handling the complaints. Turnaround Time for digital transaction failure will be reduced since the complaints are directly routed to the respective branches/departments.

15. Online Subscription of Sovereign Gold Bond

A web portal has been made available for customers to subscribe for Sovereign Gold Bond online. Customers will get a concession of 50 per gram of Gold Bond for online subscriptions.

16. Fraud protection for customer

Avoid / Prevent fraudulent transactions:

Customers can Lock/Unlock all Digital Channels – Net Banking, Mobile Banking, Debit Cards & Credit Cards

Secure installation of Mobile Banking and BHIM UPI Application only on registered mobile numbers

All Magnetic Stripe Debit & Credit Cards replaced with Chip based EMV Cards.

All Bank owned ATMs are upgraded with Anti-Skimming facility to avoid data theft due to card skimming.

Round the clock (24 x 7) monitoring of Card based transactions through Fraud Risk Management system.

Security Compliance

Implementing cyber-security guidelines issued by RBI / NPCI on regular basis.

Conversion of all existing ATMs for accepting EMV Chip and PIN cards.

Customer Awareness

Regular SMS alerts/emails sent to customers on Security awareness in English & Local languages


Banks MIS system is used by business teams for various purposes viz., Statutory & regulatory reporting, Campaign management, Business decision making and capturing additional information from Branches/Zonal Offices through front-end facilities developed by MIS.

Persistent endeavour is made to empower the business-users to generate data/reports through automation of MIS processes for cost saving and improving Turnaround time (TAT) by providing insights for informed business decision making, centralized processing of subsidy/refinance claim etc. Around 3000 reports are developed and ported in MIS applications which are being widely accessed by users for various reporting purposes. The reports are periodically reviewed to ensure their efficacy and to weed out obsolete reports from the MIS portals.

In order to upgrade the present capability of building sophisticated MIS applications with Data Analytics (Predictive and prescriptive), ETL(Extract, Transform & Load) & Business insights, implementation of DataAnalytics & Business Insights solution has been taken up. In this project, 40 functional requirements including Branch Performance and profitability analytics, Customer 360 view - based on demography, profile, Life Time Value (LTV) cross sell, up sell analytics etc., will be implemented in a phased manner.

To address the present requirements of Top Management, reports/dashboards development through Power BI (Business Intelligence tool) has been initiated. The potential benefits of business intelligence tools include accelerating and improving decision-making optimizing internal business processes, increasing operational efficiency


Banks Information System & Security processes have been certified with ISO 27001:2013 standard. Banks

IS Security Department and IT Departments are certified for ISO 27001: 2013 Standard. The certification adds credibility, a testimonial for the reliability of the Banks information security system and reassures the clients that the Banks information security is of high quality. The standard also lays emphasis on measuring and evaluating the performance of Information Security Management System (ISMS). Also, the certified security standard has additional controls in cryptography, secured development, security testing, supplier relationship etc. Information Systems Security Policies as per ISO 27001 - 2013 standards were formulated and put in place to secure the Information Systems of our Bank.

The recertification audit for ISO 27001 certification has been successfully conducted during February 2018 to check whether the certified security environments are followed and recertification has been issued till February 2021. Recently surveillance audit also has been completed for the year 2019 which has confirmed the continued compliance of the ISMS of the Bank with the ISO 27001 Standards.

RBI Guidelines on Cyber Security Framework in Banks

Bank has put in place a Cyber Security Policy in terms of RBI circular dated 2nd June 2016 on Cyber Security Framework in Banks elucidating the strategy containing an appropriate approach to combat cyber threats given the level of complexity of business and acceptable levels of risk, duly approved by the Board. The main objectives of the policy are to enhance the resilience of the bank by improving the current defenses in addressing cyber risks and ensure adequate cyber security preparedness on a continuous basis, provide guidance and direction to the bank in combating cyber threats, given the level of complexity of business and acceptable level of risks and to enable the staff, vendors, contractors and other stakeholders to gain awareness and fulfill their responsibilities to protect the information assets with which they are entrusted. A Cyber Crisis Management Plan (CCMP) has also been formulated and put in place mainly focusing on incident handling process of cyber incidents.

New Information Security solutions to protect customer information

Security Operation Centre (SOC) has now been equipped with Security Incident and Event Management (SIEM) solution for pulling out the security logs from the security devices and servers and analyzing for any anomaly. Also devices added and implemented in the SOC are Privilege Identity Management (PIM) solution (to track the activities of the privileged users), Database Activity Monitoring

(DAM) solution (for monitoring the activities happening at the database) and Vulnerability Assessment Solution (VAS) (to scan the systems for vulnerabilities).

The existing SOC has been reinforced with additional security solutions deploying State of the art technologies thereby transforming the existing SOC to Cyber SOC which has added additional layers of security to strengthen the cyber security resilience and posture of the Bank. The latest additions to the SOC are,

WebApplication Firewalls (WAF)

Network BehaviourAnalysis (NBA)


Advanced Threat Protection for End points, Web and Email gateway

Service Desk solution to monitor the incident track flow and effectively handle the change management

Implementation process of Data Leak Prevention Solution and Network Access Control (NAC) has already been initiated and is under progress.


As the part of the green initiatives, all payments to vendors, suppliers etc are made through electronic channels, viz., direct credit / NEFT / RTGS (only under exceptional circumstances, payment by way of cheque is made)

Introduction of Solar Power and LED lights at Bank owned premises

Bank owns 148 properties in India and 2 properties in Singapore.

Bank has put in place uniform policies for Premises Expenditure, Purchases Contracts, Printing and Stationery, Air-Conditioning, Auto mobiles, Telephone / Cell Phone and has adopted the same at all branches / Zones


A. Solar Power and LED lighting

Harnessing of Solar power to Corporate Office, this is already under Green Building (Gold Rating Status). By adopting alternatives sources of energy, as a public Sector Bank the Bank has joined hands with other entity to form Green India.

Expanding the Solar Power Plant installation network in Banks own building, wherever technically feasible, to reduce the annual overall expenditure on Energy consumption by about 4 to 5 percent.

Adopting new technological products in the illumination systems by using LED lamps in the interior lighting systems

New branches illuminated with LED lighting only.

Lighting in existing branches being replaced in a phased manner. Presently 1050 branches / Offices are provided with LED lighting.

B. Other Green Initiatives

Conduct of Energy Audits periodically for branches and offices.

Provision of timers for auto cut off of Air Conditioners installed at branches and Offices, installations of harmonic filters and usage of Star rated electrical appliances have considerably reduced the consumption of electricity.


Bank has appointed M/s Deloitte Haskins & Sells LLP Bangalore as consultant for smooth implementation of IndAS and the implementation is in progress.

As per the directions of RBI vide their letter DBR.BP.BC.No.76/21.07.001/2015-16 dated 11.02.2016, Banks shall comply with Ind AS for standalone and consolidated financial statements for accounting periods beginning from April 1, 2018 onwards with comparative figures for the preceding period ending March 31, 2018

Earlier, RBI had advised the Banks to prepare Proforma Financial Statements as per Ind As for the half year ended 30.09.2016 with transition date as 01.04.2016 and the same was prepared and submitted to RBI. Similarly proforma Ind As financials for the quarter ended 30.06.2017 was also submitted to RBI

Subsequently, RBI advised that Banks shall submit proforma Ind AS financial statement for every quarter starting from quarter ending 30th June 2018 onwards. Bank is complying with the same.

As per RBI notification DBR.BP.BC.No.29/21.07.001/ 2018-19 dated 22-March-2019, Ind AS implementation has been deferred till further notice. However, quarterly submission of proforma Ind AS financials is being continued.

Internal Controls

During the year, Risk Based Internal Audit (RBIA) was carried out in 2069 branches.

596 branches were covered under concurrent audit, covering 56.23 per cent of total domestic deposits and 68.47 per cent of domestic advances as on 31.03.2019. Overall, 61.50 per cent of domestic business was covered under ConcurrentAudit.

Risk based ConcurrentAudit is in vogue from 01.04.2013.

Revenue Audit covering 2536 branches with business exposure of 10 Cr and above was carried out to identify leakage of income, if any, in addition to RBIA and ConcurrentAudit.

Management Audit of 41 Zonal Offices was conducted during the year under review and followed up for compliance.

Information System (IS) Audit of Information & Communication Technology (ICT) infrastructure – CBS application suite, data centre and CBS project office was carried out by an external audit firm during the period of review. Special audit of ATM switch were conducted by external auditors in order to ensure control effectiveness of customer facing applications.

Offsite monitoring activities were carried out in the Bank on a two tier setup at Corporate Office and Zonal Offices to sensitize the branches for corrective action on a daily basis.

Separate program for inspectors was conducted during the year to make them familiar with the latest developments and to develop their reporting skills.

The Anti Fraud Cell functions under Inspection Department with the predominant responsibility of coordinating all activities related to fraud, comprising identification, classification, reporting, investigation, monitoring and follow-up, closure, surveillance for fraud prevention, pooling of fraud data and analysis of the data for systemic improvements.


The Banks Compliance Policy has been duly approved by the Board. In accordance with the Reserve Bank of India guidelines, an independent Compliance Department headed by a Deputy General Manager has been set up in the Bank. The Department monitors adherence to various statutory and regulatory guidelines governing the Banks functioning such as:

Various legislations viz. Banking Regulation Act, Reserve Bank of India Act, Foreign Exchange Management Act, Prevention of Money Laundering Act etc

Regulatory guidelines issued by Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and DevelopmentAgency etc.

Voluntary standards and codes prescribed by industry Associations such as Indian Banks Association, Foreign Exchange Dealers Association of India, Fixed Income Money Market DealersAssociation etc. and

Banks internal policies, codes of conduct, guidelines etc. issued by way of Circulars, Manuals etc.


Vigilance department is responsible for vigilance administration of the Bank. The department is guided by Central Vigilance Commission (CVC)/DFS/RBI guidelines on Vigilance Administration and is the single point of contact for consultations with CVC on vigilance matters. The Department is headed by Chief Vigilance Officer (CVO) who is appointed to the post by Government of India on the recommendations of Central Vigilance Commission(CVC). CVO is the nodal Officer to liaise with RBI/CBI/CVC/Government in respect of vigilance related matters in the Bank.

All officers of the rank of Assistant General Manager and above come within the jurisdiction of CVC in the matter of disciplinary proceedings. CVO tenders advice as to the nature of disciplinary proceedings in respect of Officers below the rank of Assistant General Managers. CVC tenders the stage advices (vigilance cases) in respect of officers in scale V and above and also in composite cases. CVO ensures adherence of Commissions guidelines in respect of vigilance cases.

The department is functioning in a proactive manner, with a focus on preventive vigilance initiatives within the Bank, disposing of all vigilance disciplinary cases in line with the Central Vigilance Commissions guidelines. Investigations of vigilance complaints and frauds are undertaken through Vigilance Officers located in the various Zonal offices of the Bank.

Training programmes conducted

Three exclusive in-house training programs were held for the Presenting Officers/Inquiring Authorities, Vigilance Officers and Disciplinary Authorities/Deputy Zonal Mangers during the year covering all the aspects of vigilance and also on the importance of preventive vigilance in the Bank.

Workshop for CVOs of various Public Sector Enterprises/PSBs/PSEs of Southern India was held at Banks training academy (IMAGE) on 05.07.2018 & 06.07.2018 with special addresses by Central Vigilance Commissioner & Vigilance Commissioner.

CVC conducted a one day seminar at Andhra Bank, Hyderabad on the Preventive Vigilance initiatives by South Based Public Sector Banks on 08.02.2019. The seminar was attended by Managing Director & Chief Executive Officer and Chief Vigilance Officer. MD & CEO presented a power point on various preventive vigilance initiatives undertaken by the Bank and also on the roadmap for implementing a few new Preventive Vigilance measures in the Bank.

VigilanceAwareness Week 2018

Vigilance Awareness Week was observed from 29/10/2018 to 03/11/2018. The theme of the programme was "Eradicate Corruption – Build a New India". Every rural and semi-urban branch organized "Awareness Gram Sabhas" to sensitize the masses on the need to eradicate corruption and build New India. Grievance redressal options available to the public were explained in such gatherings. The Integrity pledge as set by the Commission was administered to Citizens/ Organisations. The Integrity pledge was administered en masse to the participants of the Gram Sabha meet.

As per the advice of the Central Vigilance Commission, outreach activities were organised in many metropolitan /urban and semi-urban centres all across the country. Guest lectures, debates, panel discussions, elocution and essay competitions were organised in select colleges and schools (for students of class IX & above) located in Chennai, Coimbatore, Guntur, Madurai, Puduchery, Salem, Tiruchirapalli and Tirunelveli (8 centres) which were allotted to the Bank by the Commission for spreading the theme of the Vigilance Awareness Week extensively. Various topics relating to corruption and its ill effects, importance of morals and values, honesty and integrity, ethics, transparency in governance and how to eradicate corruption and build a new India was disseminated through these outreach activities. Human Chains, Walkathons, Cycle rallies were conducted by the Bank at Chennai, Kumbakonam, Coimbatore and Tiruchirapalli apart from holding various Folk art programs at many other rural/semi urban centres PAN-INDIA including villages during the VigilanceAwareness Week (VAW).

A seminar on the theme of VAW 2018 was conducted at the Banks training academy (IMAGE) wherein all the executives of Chennai city branches/Zonal office and Corporate Office/Head Office participated.


Security Management is a vast and complex field undergoing rapid advancement and sophistication while continuously adapting to technological innovations. In our Bank, it is mainly manpower oriented and achieved along with a mix of modern electronic security gadgets. Reliance on machines and electronic gadgets has increased as protection of Banks premises through human guards have not only become time consuming, inefficient and unreliable but have become a costly resource due to revised Labour regulations.

The Banking Industry is a lucrative target and has an inherent risk of being targeted by anti-social elements. Criminals are constantly adopting new and sophisticated techniques e.g., gas cutters/pneumatic drills/daylight armed dacoity /train heists etc. to achieve their objectives. It is needless to reiterate that dependency on active security solutions rather than passive systems are required in modern day scenario.

The arduous task of securing our assets has become a collective responsibility of all stakeholders. Branches and ATMs of the Bank are provided with High Definition CCTV Cameras, Network Video Recorders, State-of-the-art Burglar and Fire Alarm systems with auto-dialers. Automatic Fire Extinguishers are installed in the server rooms to avert/ mitigate the risk of fire hazards.

Fire and Mock evacuation drills are conducted once in two years in all Currency chests as per RBI guidelines. GPS Based tracking devices have been installed in all Banks Cash Vans. 24 x 7 Electronic Surveillance (e-Surveillance) in allATMs across the country.

To overcome redundancy and obsolescence of security gadgets leading to untoward incidents, review of the existing security systems and procedures are periodically undertaken by the Department headed by Chief Security Officer at Corporate Office. The latest technical security systems, devices and mechanisms available in the market are comprehensively studied, assessed for performance and systems upgraded/replaced/introduced in branches of the Bank as per feasibility. Additionally, recommendations and guidelines on security arrangements in Banks/ATMs/Currency Chests as and when prescribed by IBAand RBI are also implemented.

Security Management is a part of Operational Risk Management. The need of the hour is dynamism and capacity for adaptation to a new environment. Unlike Financial Risks the physical risks to Banks assets are easily identifiable and preventable by effective security systems. RiskAssessment of the branches and offices are based on vulnerability and threat perception. Comprehensive evaluation and risk assessment is carried out once every 3 years as per guidelines so as to periodically reassess the vulnerability and enhance security measures, wherever applicable.

The Department is supported at the field level by Security Officers (Ex – Servicemen) at respective Zones who are pivotal in ensuring that the guidelines/instructions/ policy of the Bank are implemented at the Branches/ ATMs/Currency Chests. Deficiencies/shortcomings observed during the inspection are followed up for rectification to strengthen the security aspects of the Branch/ATM with the objective of preventing untoward incidents.

Zonal Security Officers conduct Security inspection of all Branches/ATMs once a year and reports are uploaded in an ONLINE mode for simultaneous consumption at various levels – Branch, Zonal & Corporate Office. Currency Chests are inspected on a quarterly period.

Electrical Audit of all Branches/Administrative Offices are conducted once a year and observations of the report are rectified at the Branch level with the concurrence of the respective Zonal offices.

Empowering the Bank to Go Green – A new software "Annual Electrical Audit" has been introduced for uploading the reports of Electrical Audit to monitor the progress of inspection, rectify observations and take corrective action wherever necessitated.

Annual Training of Security officers is carried out once a year. The Officers are updated with latest technological advancement and best practices for implementing the same in Branches. LIVE firing practice is conducted for armed guards, every year.

Security aspects are highlighted during the State Level, District Level Security Committee and Standing Security Committee Meetings and the same disseminated to respective Zones and compliance ensured.

Bank has adhered to asset protection measures and followed procedural safe guards during cash remittance for safety of Banks assets. Precaution and Prevention is an adage that the Department strives to achieve. For the Security Officers who have formerly served in the Indian Armed Services - protecting the interests of the Bank is their prime concern.

Sovereign Gold Bonds

3 An amount of 24.36 Cr was collected in 6 weekly tranches during the Financial Year 2018-19 as follows:

Series Issue Period Amount ( in Cr.)
I April 16-20, 2018 2.79
II October 15-19, 2018 4.80
III November 05-09, 2018 8.38
IV December 24-28, 2018 2.39
V January 14-18, 2019 1.74
VI February 04-08, 2019 4.26
Total 24.36

Sukanya Samriddhi: 2839 new accounts were opened during the Financial Year 2018-19, taking the total number of accounts to 8970. The amount collected during the financial year 2018-19 was 27.70 Cr and the cumulative amount collected was 65.26 Cr

Public Provident Fund: The cumulative collection under PPF accounts rose by 184.63 Cr during the Financial year 2018-19 and the cumulative balance in PPF accounts was 1514.58 Cr from 35794 accounts.



Total business of nearly 900 Cr was canvassed by Marketing Officers vertical.


HL/VL and MSME Loan Leads Generation via Digital Marketing Campaign

Digital marketing campaign was conducted for IB Home Loan, Vehicle Loan and MSME Loan.


Cash Reward Campaign on Indian Bank Mastercard Debit Card :

Top Spender/Cash Reward Campaign for Indian Bank Mastercard debit card users was conducted. The period of the campaign was for 30 days from 29th December 2018 to 27th January 2019, 1450 customers were rewarded.

Banks sponsorship to the series (Avenues of Excellence) on Doordarshan:

Doordarshan National Television ran an education series

Avenues of Excellence (Higher Education) through which Central/State universities and Higher Education Institutes showcased their campus & facilities. The opportunity was utilized for promoting bank by creating and running a TV Commercial.

Engagement Contests on Social Media:

Ten contests were designed and executed during FY 2018-19 on social media channels to promote and build awareness about the Bank and engage more people on social media platforms. Posts were promoted on Facebook and Instagram to reach audiences and encourage their participation

Brand Management on Social Media:

Banks Official Facebook, Twitter, YouTube, Instagram and LinkedIn handles were managed, disseminating information of promotional advisory, tutorial and general nature.

Facebook account was verified during May 2018 and Instagram and Twitter Accounts were verified during September 2018 and December 2018 respectively.

Response Management & Online Reputation Management (ORM)

Also addressed queries and facilitated resolution through stakeholding offices.

Radio Campaign

As the part of promotion and advertisement, FM Radio Channels were used to promote Home Loan and Vehicle Loan, CASA and Cash back campaign.


IVR Call Centre

Banks 24x7 Call Centre, services queries, complaints, hot-listing of cards, etc.

Interactive voice response facility (IVR) would be introduced shortly.

New Website :

The revamped website has been launched wef September 2018. Aesthetics, navigation, device adaptability and overall appeal of the website has been improved. Additionally, innovative features like market feed has also been added. Analytics has also been deployed to measure the traffic and other stats of the website.

Introduction of Indian Banks Official Newsletter-"Ind Navya"

During February 2019, Banks Official e-Newsletter "IND NAVYA", a monthly newsletter was launched to keep our existing and prospective customers updated with banks customer-centric initiatives and developments like launch of new products and services, features, promotional offers, campaigns, achievements, network expansion, events, government directives, etc. It is sent to through e-mail and also made available at Banks website. As on date, 3 issues have been released.


Multiple events were managed including AGM, Customers Meet,Asset fair etc.

ETAward Event (February 2019):

As a first, Bank was associated with Economic Times for the inaugural edition of ET Corporate Awards – Tamil Nadu 2019, as the Title Partner. The awards recognized the best companies of Tamil Nadu across some key parametres.

Felicitation of Women achievers on International Womens Day (March 2019):

On the occasion of Internationals Womens Day, 12 Women Achievers were honoured for their outstanding contribution in the fields of administration, dance, medicine, music, sports, social work and yoga during a special evening at Chennai. A celebratory video was also made during this event which showcased Banks commitment to serve and empower women by way of women-centric schemes, skill training institutes, CSR activities and employee welfare measures.


External Communication

During 2018 -19, Bank focused on various activities to reach out to customers with customer centric products. They were also updated regarding various Government schemes, achievements and welfare initiatives for the general public.

International Womens Day was celebrated in grand manner at IMAGE Auditorium, Chennai. Dr V Shanta, Chairman, Cancer Institute was the Chief Guest of the programme. 12 women achievers from various fields were felicitated on the occasion. Self Help Group members from various places also participated in the function.

Banks 112th Foundation day celebration was conducted in

a grand manner with active participation of staff members and customers at Banks training academy (IMAGE), Chennai.

Several events viz., press conferences/meets, special interviews on various occasions including launch of new technology products, Melas, Financial results and important events like VigilanceAwareness Week, Swachh Bharat drive etc. were organized. More than 60 press releases of the Banks various events were covered by the Media/Press pan India.

Bank had been widely covered by ET Now, BTVi, CNBC TV 18 group, Thanthi TV, Sun TV, Puthiyathalaimurai TV, News 7, News 18, The Hindu, The Times of India, Business Line, The Economic Times, Business Standard, The Financial Express, Hindustan Times, The New Indian Express, Daily Thanthi, Dainik Bhaskar, Rajasthan Patrika, Dina Mani, etc during various occasions such as Press Meet for declaration of Financial Results, Launch of technology products, Loan Melas, Swachh Bharat Pakhwada, Pan-India Blood/Organ Donation Camps, 112th Foundation Day Celebrations etc.

Outdoor campaigns were accelerated by full train wrap advertisement at Mumbai, Metro station besides advertisements at Delhi and railway station advertisements at Chennai.

In-flight branding was carried out where advertisement was given in passengers back seat in flights to reach out to HNI customers. Similarly, passenger trolley branding was put up in Delhi airport and LED display board was made inside Corporate Office premises.

Pan India advertisement was issued in leading dailies about Banks achievement of 4 lakh Cr Global business, new term deposit products – IB Foundation, IB Foundation Multiplier, festival offers for Home and Vehicle loans and IB Surabhi, an exclusive savings account for women.

A new mnemonic was designed to mark Banks 112th year of service to the nation.

Internal Communication

Information on various events of the Bank like birthday celebrations, CSR programmes, Parliamentary Committee visits, womens day, etc were disseminated to employees. Banners were also displayed to make employees aware about various National and International Days like World Environment Day, International Day of Yoga, Blood Donor Day, May Day, Mothers Day etc.


Corporate Social Responsibility (CSR) initiatives of the Bank extended beyond banking and lead it to honor ethical values and respect people, communities and the natural environment.

As a strong corporate, Bank is taking up various initiatives for the benefit of the society with the commitment to serve the people of India. Proud of its humanitarian services, Bank has achieved many accolades in recent past to touch many lives and bring in positive change.

Bank as a responsible Corporate Citizen worked to reach out to the needy and marginalized population through various contributions:

Clean India Movement: Donated automatic napkin vending machines and incinerators to Government schools/Colleges and hostels for women in Tamil Nadu.

Women Empowerment: Sponsored Event "Parampara" organized by Parichay Foundation on 2nd September 2018 at Delhi.

Inclusive Growth: Extended sponsorship for constructing 1800 ft road under CSR from Village Maujdin to Government Primary school, Madhao Singhana, Sirsa, Haryana.

Donated 24 lakhs towards construction of National Academy of RUDSETI (NAR) Building at Bengaluru for Skill Development under CSR.

Green Initiative : Contributed 9 lakhs for Green Vellore Project of VIT, Vellore.

CSR Highlights:

Ms.Padmaja Chunduru, MD & CEO, flagged off a vehicle carrying relief materials collected by the Bank for distribution in areas affected by Gaja cyclone in Tiruvarur district.

Staff members of the Bank voluntarily donated various relief materials to be distributed to the victims of the calamity. Executive Director, General Managers, Executives and other staff members were present during the event held at Corporate Office, Chennai.

Shri. M.K.Bhattacharya, Executive Director of the Bank handed over the flood relief materials to the EFI – KERALA, an NGO for distributing to the flood affected people of Kerala. Staff of the Bank voluntarily donated various flood relief materials to the victims of the calamity. General Managers, Executives and other staff members were present during the event held at Corporate Office, Chennai.

An amount of 4.01 Cr was handed over to Honourable Chief Minister of Kerela Shri. Pinarayi Vijayan towards Kerela CM Distress Relief Fund on 24.08.2018. Out of the said amount, an amount of 3.01 Cr was contributed by employees and the remaining amount of 1 Cr was from the banks side.

Restoration of Theeyambakkam Pond in North Chennai under Corporate Social Responsibility - Shri. M.K.Bhattacharya, Executive Director inaugurated the restoration activity. Shri. M. Nagarajan, GM, Shri. V. Chandrasekaran, ZM – Poonamallee also participated in the event.

Blood/Organ donation and Health & Eye check-up camps organised through Branches/ Zones

Blood donation camp at Banks training academy (IMAGE). Executive Director Shri. V V Shenoy inaugurated the camp along with the Principal Smt. Bhagyalakshmi Patnaik.

Blood Donation camp organised at Meenakshi College of Engineering, Nesapakkam through Thousand Lights Branch, Chennai (South). Shri. Venkatesa Perumal General Manager/Zonal Manager inaugurated the camp.

Blood Donation camp at Anand Institute through Siruseri Branch.

DGM Shri. Shanmuganathan, Zonal Manager, Kancheepuram, Smt. Dr. Arivalagi, Director of college inaugurated the camp.

Branch Manager of Siruseri, Staff & students participated.

Blood donation camp at V I Institute of Technology, Sirukundram, through Anna Salai Branch, Chennai North Zone.

Assistant General Manager/Branch Manager Shri.Raghunathan visited the camp & graced the occasion .

Swachh Bharat Pakhwada: Continuing the crusade of Swachh Bharat Mission launched by the Honble Prime Minister in 2014, Team Indian Bank observed Swachh Bharat Pakhwada at all its offices and branches. Cleaning activities carried out by Branches/Zones were monitored by the Corporate Office through Video conferences/Video calls.

Cleaning of premises of Quaid –E – Millath Govt. College for Women, Anna Salai, Chennai was taken up as part of the Swachh Bharat Campaign.

Swachh Bharat Mission: The bank had donated 2 automatic napkin vending machines and incinerators to Govt. schools and hostels for girls in each Zones in Tamil Nadu.

Swachh Bharat Initiative : The Bank Renovated the Infrastructure Facilities at SC/ST/OBC College Students Hostel and the same was handed over to the beneficiaries by Executive Director Shri. M.K. Bhattacharya at Kabali Thottam, Mylapore, Chennai. Shri. M. Nagarajan, GM (Corporate Communications Department) and other dignitaries participated in this event.

Construction of 108 Toilets in Girls Schools across the country is in progress. During the year 2018-19, 11 toilets in various schools ( Kancheepuram–8 ,Tiruvananthapuram – 3) were constructed.

Ms. R. Divya, a homeless/motherless girl and an adopted daughter of the Bank is now pursuing Nursing course with the support of the Bank.

Go Green Drive is part of the Banks routine activities. On every special occasions/ events, saplings are being planted and so far more than 4 lakh saplings have been planted pan India.

On Kargil Diwas, staff of the Bank visited Nimmadhi old age home (War widows Home) and distributed sarees, fruits and biscuits. Though theAssociation is taking care of their food and shelter, it is our duty to give respect to their family members who sacrificed their life for this nation. It was a thoughtful gesture by the bank.

Yoga programme was organized in association with Krishnamacharya Yoga Mandiram (KYM) at Juvenile Girls home, Chennai. Bank donated T shirts and refreshments. Similarly, Yoga day was celebrated at Government Observation Home for Boys at Kellys with the support of KYM.

Implementation of Official Language

Bank is actively implementing the Official Language Policy of the Government of India based on Official Language Act, 196 and Official Language Rules, 1976. Based on the Annual Program released every year by the Official Language Department, Ministry of Home Affairs, Government of India, the official language program of the Bank is prepared and it is sent to the Zonal Offices for necessary action.

Bank is playing an active role in the implementation of the Official Language as per the Directions of the Government of India. Bank was awarded the "Rajbhasha Kirti Puraskar" by the Government of India for the excellent implementation of Official Language for the year 2017-18. The Award was presented by Shri M. Venkiah Naidu, the Honble Vice President of India to Shri A. S. Rajeev, Executive Director of the Bank on 14.09.2018 at Vigyan Bhawan, New Delhi.

For the purpose of popularizing Hindi language among the staff members through Hindi songs, a Wiro Desk Calendar with its theme of 12 Evergreen Hindi singers of Bollywood has been prepared. Bank has also come up with a Hindi Noting Desk Calendar in 2019.

In order to promote original writing in banking, an All India Hindi Essay Writing Competition on "Simplification of Official Language Hindi" was organized. Out of the essays received, 25 best essays were selected and published in the form of a book. In this regard, anAll India Hindi seminar was also organized at Bhopal on 22.02.2019.

With the aim of motivating staff members to work in Hindi, and to bring about acceleration in the implementation of the official language in the Bank, more than 10 books viz. Tamil-Hindi-English Glossary, Telugu-Hindi Glossary, Kannada-Hindi Glossary, Malayalam-Hindi Glossary, Samvad Chalisa, Saral Hindi Tippan, Rajbhasha Sanchayika, Rajbhasha Prashnothari etc have been published.

The quarterly Hindi magazine Ind-Image is being published by the Corporate Office of the bank. Zonal offices are also publishing Quarterly / Half yearly Hindi journals, in which special emphasis is placed on banking topics along with other necessary subjects.

The Bank has celebrated September 2019 as "Hindi Month" and during this month, various Hindi competitions and seminars were organized at Corporate Office and at the Zone level for Hindi-speaking and non-Hindi speaking staff members and for their children with the aim of promoting Official Language among staff members.

Banks website is completely bilingual. Banks Mobile App "Ind-Pay" is available in five languages (Hindi, English, Tamil, Marathi and Malayalam). All the required forms and formats useful for customers are available in bilingual / trilingual form. Banners, posters and pamphlets etc. are made bilingual / trilingual.

Special emphasis is given on training of staff members through Hindi workshops. Hindi workshops are being regularly organized at Staff Training College - IMAGE, Staff Training Centers and various Zonal offices, in which special attention is given on practical training. 60 such Hindi workshops were organized during the year, in which 656 officers and 267 clerks were trained.

Official language inspections of the branches are being carried out regularly by the Official Language Officers, in which staff members are being provided desk training to ensure implementation of Official Language.

The responsibility of conducting Town level Official Language Implementation Committees have been entrusted to some offices of the Bank by the Government of India at selected cities, which is being carried out systematically:

Under the aegis of Chennai TOLIC, a special Hindi workshop was organized at the Apex Training College of the Bank, IMAGE on 1.10.2018 on "New Dimensions of Official Language Implementation" for Official Language Officers in the august presence of Shri Prakash Shukla, Joint Director, Department of Official Language, Ministry of HomeAffairs, Govt. of India.

The Bank organized a seminar jointly with Bank of Baroda on "Cyber Security in Banking" on 29.0.2019 at Guru Nanak College, Chennai, under the aegis of Chennai TOLIC (Bank and FI).