Indian Bank Management Discussions.

1. Global Economy

• According to World Bank, the COVID-19 pandemic and the economic shutdown in advanced economies and other parts of the globe have disrupted billions of lives jeopardizing decades of development progress. In addition to an enormous human toll, countries are leading to the deepest global recession since the Second World War.

• In its Jun20 edition of Global Economic Prospect, World Bank predicted that Global GDP may contract by 5.2% in 2020 while Advance economics & Emerging market and developing (EMDEs) economies may contract by 7% and 2.5% respectively in the same period.

• Many countries have avoided more adverse outcomes through sizable fiscal and monetary policy support measures. Despite these measures, per capita incomes in all EMDE regions are expected to contract in 2020, likely causing many millions to fall back into poverty.

2. Indian Economy:

• Effect of the pandemic was felt on the Indian economy too. As per the latest report of The National Statistical Office (NSO), Indias real GDP growth dropped to an 11-year low of 3.1% in the Mar20 quarter.

• Gross fixed capital formation (GCF) which reflects investment demand in the economy, contracted by 6.5% and accounted for 28.8% of GDP, the lowest since Mar09.

• Governments final consumption expenditure (GFCE) was the only component of the economy that grew well by 13.6% during the Mar20 quarter.

• Indias merchandise exports fell sharply by 36.5% to USD 19.1 billion in May20 while import bill declined by 51.1% Y-o-Y to USD 22.2 billion in May20. Indias Crude oil imports fell by 72% while non-oil imports declined by 43.1%.

• Due the decline in import and export, trade deficit in May20 narrowed to USD 3.2 billion from USD 15.4 billion in the year-ago month.

• Supply chain disruption, combined with labour migration have created further huerdles in opening of the economy even gradually.

• As there has been significant slump in domestic economic activity due to the COVID19-induced lockdown that has curtailed imports, we expect that the countrys current account balance may remain surplus in the next few quarters of FY21.

RBI Monetary Policy

• The Reserve Bank of India in its last meeting on 22 May20 reduced repo rate by 40 basis points to 4% in an effort to further boost liquidity in the economy which has been struggling under the impact of COVID-19 induced countrywide lockdown.

• The RBI expects headline inflation to continue to soften and fall below its medium term target (4 % with +/- 2 % deviation) in the second half of FY21.

• Though RBI refrained from providing any figure for growth, it believed that recovery in economic activity may begin in Q3FY21 and gain momentum in Q4FY21 as supply lines are gradually restored to normalcy and demand gradually revives.

Union Budget FY 21

• Revenue deficit is targeted at 2.7% of GDP, which is higher than the revised estimate of 2.4% in FY20. Fiscal deficit is targeted at 3.5% of GDP, lower than the revised estimate of 3.8% in FY20.

Recent Initiatives by GoI

• Union Finance Ministry announced the merger of 10 public sector banks (PSBs) into four.

• Collateral free automatic loans worth Rs 3 lakh Cr will be provided to MSMEs with up to Rs 25 Cr outstanding and Rs 100 Cr turnover. This is for 4 year tenure and is 100% guaranteed. These loans can be availed till 31 Oct20.

• GoI has reduced TDS rates by 25%, applicable on all payments - interest, rent, brokerage, supply, etc. for the period from 14 05 2020 till 31 03 2021.

• Power Distribution companies in union territories shall be privatised in line with the Tariff Policy soon to be announced.

• Minimum threshold to initiate insolvency proceedings raised to Rs 1 crore from Rs 1 lakh earlier.

• Violations involving minor technical and procedural defaults have been decriminalized under Companies Act.

• Fiscal deficit limit of state has been increased from 3% to 5% of GSDP only for FY21 subject to reforms. This will provide extra resources of Rs 4.28 lakh crore to the States.

Major Economic & Monetary Developments:

• In order to mitigate the adverse effects on economic activity leading to pressures on cash flows, RBI will conduct auctions of targeted term repos of up to three years tenor of appropriate sizes for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate.

• As a one-time measure to help banks tide over the disruption caused by COVID-19, it has been decided to reduce the cash reserve ratio (CRR) of all banks by 100 basis points to 3.0% of net demand and time liabilities (NDTL) with effect from the reporting fortnight beginning 28 Mar20.

• With a view to further strengthening monetary transmission, it has been decided to link pricing of loans by scheduled commercial banks for the medium enterprises also to an external benchmark effective 1st Apr20.

• It has been decided to extend the benefit of one-time restructuring without an asset classification downgrade to standard accounts of GST registered MSMEs that were in default as on 1st Jan20. The restructuring under the scheme has to be implemented latest by 31 Dec20. st

• The RBI shall construct and periodically publish a composite "Digital Payments Index" (DPI) to capture the extent of digitisation of payments effectively.

• The Cheque Truncation System (CTS), which is currently operational at the major clearing houses of the country, has stabilised well and it has made large efficiency gains. In view of this, a pan India CTS will be made operational by Sep20.

• The Reserve Bank has made available the NEFT system on a 24x7 basis from Dec19. This is expected to revolutionise the retail payments system of the country.

• In order to ensure quick and systemic responses in, the RBI has proposed to facilitate the creation of a Central Payment Fraud Registry that will track these frauds.

Major announcements with impact on growth of bank credit Moratorium on term loans and deferment of interest on working capital facilities

• RBI has permitted all commercial banks to grant moratorium on term loans and deferment of interest on working capital facilities from 01.03.2020 to 31.08.2020. This may provide continued relief to banks as their NPA levels may not increase and they were facing some challenges in actually collecting repayments from borrowers due to the lockdown. RBI has permitted all lending institutions to convert accumulated interest on working capital facilities over the deferment period (from 01.03.2020 to 31.08.2020), into a Funded Interest Term Loan (FITL), which will be repayable by 31st Mar21 to provide relief to the borrowers who will face difficulty in servicing accumulated interest after the moratorium period.

Relief Measures to MSMEs

• Definition of MSMEs has been changed and an additional criterion, annual sales turnover size has been introduced to help them grow in size and get benefits. For MSMEs up to Rs 25 crore outstanding and Rs 100 crore turnover, collateral free automatic loans worth Rs 3 lakh crore will be provided for tenure of 4 years and is 100% guaranteed.

These loans can be availed till 31st Oct20. This will allow them to meet operational liabilities built up, buy raw material and restart business, which in turn will revive industries & safeguard jobs. Also the Government has decided that all tenders up to Rs 200 crore should not be global tenders so as to facilitate Indian MSMEs. This will allow MSMEs a chance to supply for these big projects. Fintech will be used to enhance transaction-based lending using the data generated by the e-market. Further, all the receivables of the MSMEs from Government and CPSEs (Central Public Sector Enterprises) will be cleared within 45 days. This will help the MSMEs to access a broader market to sell their products and also improve their liquidity position.

3.BANKING SECTOR 2019-20

• SCBs deposit growth stood at 9.5% y-o-y in Mar20 which was higher than the credit growth of 6.4% in the same period.

• The CASA ratio for SCBs stood at 42.1% on account of growth in the overall savings deposit at the end of Q4FY20. The savings deposit accounts for 32.9% share in the total deposits while current deposits account for 9.2%.

Year ahead

• Economic activities have come to a standstill since the nationwide lockdown announced in late Mar20. With the slowing GDP growth, consumer spending has been affected across sectors. Demand revival will be a key challenge for the Government in the near term. This has also affected many businesses which are now finding difficult to survive. This in turn may affect recovery for the Banks. Unless economic growth revives, Banks may find it tough to recover their dues. Earnings are also likely to remain under pressure in FY21 unless there is an improvement in recoveries or a pick-up in GDP growth

• Banks are moving towards digital and contact less technologies.

4. DETAILED BUSINESS OVERVIEW

Resource mobilisation & Credit deployment

• Global Business reached a level of Rs 466116 Cr (429972 Cr as on March 2019) with a growth of 8.41%. Domestic Business was Rs 450273 Cr.

• Global Deposits reached Rs 260226 Cr (242076 Cr as on March 31, 2019) with a growth of 7.50%. Domestic Deposits reached Rs 252792 Cr.

• Domestic CASA Deposits reached Rs 89584 Cr (83459 Cr as on March 31, 2019) recording a growth of 7.34%.

• Gross Advances was at Rs 205890 Cr (187896 Cr as on March 31, 2019). Domestic Credit reached Rs 197481 Cr.

• Domestic Non food credit increased to Rs 196397 Cr (179505 Cr as on March 31, 2019)

• Global Credit-Deposit Ratio stood at 79.12% (77.62% as on March 31, 2019)

5. BRANCH NETWORK AND EXPANSION

• Bank has expanded its distribution network by 31 branches and 8 administrative offices during FY20 16 branches were merged/closed during the FY20.

• Branch network stood at 2887 branches on 31.03.2020, comprising of 740 Rural, 833 Semi urban, 637 Urban and 677 Metropolitan branches. Besides, Bank has 3 overseas Branches Viz., Singapore, Colombo and Jaffna and an IFSC Banking Unit (IBU) at Gift City Gandhi Nagar, Ahmedabad.

• Bank has 407 branches in the 356 under banked districts identified by Reserve Bank of India. There are 450 branches in Minority concentrated Districts and 244 branches in the unbanked centres.

6. FUTURE BUSINESS PLAN OF THE BANK

Amalgamation of Allahabad Bank into Indian Bank has placed your Bank as the 7th largest Bank with more than Rs 8 lakh crore business, 43,000 strong workforce and over 6000 branch network with a strong CASA base and commenced operations as merged entity from 01st April 2020.

Government of India has initiated various reform measures and structural changes including recapitalization plan and introduction of Enhanced Access and Services Excellence (EASE) towards Smart and Tech-enabled banking.

The prime focus this year would be on increasing CASA, curtailing cost, increasing revenue other than from interest, accelerating recovery in respect of impaired assets and containing the level of NPA. The growth in business would culminate into improving of the bottom line.

Efficient customer service will continue to be the focus area with frequent employee and customer connects. In view of the COVID situation, aggressive promotion of digital channels will be encouraged.

Going forward, the key areas identified for thrust would also include loan growth under RAM sector with focus on higher yielding advances, soliciting high rated Corporate accounts offering good yield, conserving capital, pursuing best risk management practices, quantum jump in non-interest income, reducing operating cost, increased use of alternate channels through innovative technology offering.

7. STEPS UNDERWAY: Organizational restructuring:

• Restructuring the Corporate Office verticals headed by General Managers to improve the control efficiency.

• Creation of additional Field General Manager Offices and Zones would help in driving the Banks business more effectively.

• Establishing Large Corporate Branches (LCBs) and Mid Corporate Branches (MCBs) to cater to the needs of the corporate and mid corporate borrowers.

• Focus on RAM – Centralized processing units for MSME and RAM.

• Strengthening Credit Monitoring Department and Recovery Department by establishing centers at Kolkata and Chennai.

Diversifying loan book:

• Positioning for taking exposure in well rated Large & Mid corporates.

Improving efficiency:

• Rationalization of unviable and slow growth branches.

• Unlocking value in Subsidiaries of the Bank viz., Ind Bank Merchant Banking Services Ltd. and Ind Bank Housing Ltd.

• Centralization of HR/Corporate credit/Recovery verticals & Forex trade processing unit.

Others:

• Co-orgination of loans in collaboration with NBFCs.

• Exploring cross sell options through tie up with Insurance companies for sale of Bancassurance products, Life & Non life.

• Ramping up MSME lending through TReDS platform

• Tie up with Builders/Vehicle dealers and Tractor manufacturers

8. DEPOSITS

TERM DEPOSITS

• Rates of interest were revised 7 times between April 2019 and March 2020

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

• Fresh inflows of Rs 40251.74 Cr during 2019-20

CASA

• A total of 2156586 new clients have been acquired in CASAand a business of Rs 4076 Cr have been garnered

Details of campaigns conducted

Period Number of days held

Current Account

Savings Bank

Accounts opened Amount mobilized Accounts opened Amount mobilized
(No. in lakh) ( in Cr) (No. in lakh) ( in Cr)
2019-20 I IB AKSHAYA
26 0.06 135.88 2.30 316.60
26.08.19- 30.09.19
2019-20 II IB VRIDDHI
36 0.06 75.30 2.54 336.31
02.12.19-31.12.19

9.AGRICULTURE :

• Total outstanding under Agriculture credit was Rs 44369 Cr and has increased by Rs 5364 Cr as of March 2020 from March 2019 level of Rs 39005 Cr.

AGRICULTURAL DISBURSEMENT:

• Under Ground Level Credit Flow to Agriculture (GLF), Bank disbursed farm loans to the tune of Rs 40511Cr during the FY 2019-20 as against an annual target of Rs 22000 Cr.

• During the FY 2019-20, Bank disbursed sum of Rs 19678 Cr to 26.25 lakh Small/Marginal Farmers.

SEGMENT - WISE PERFORMANCE

• Priority Sector Advances was at Rs 72248.16 Cr as on 31.03.2020.Priority sector as a percentage to quarterly average Adjusted Net Bank Credit (ANBC) for 2019-20 stood at 46.57% as against the mandatory target of 40%.

• Agriculture Credit was at Rs 31357.56 Cr as on 31.03.2020 and the percentage to quarterly average ANBC for 2019-20 stood at 20.38% as against the mandatory target of 18%.

• Lending to SF/MF stood at Rs 14631.29 Cr as on 31.03.2020 and constituted 9.30% of Adjusted Net Bank Credit (ANBC) on quarterly average basis for the year 2019-20 as against the mandatory target of 8%.

• Lending to Weaker Sections stood at Rs 16899 Cr as on 31.03.2020 and constituted 11.94% of Adjusted Net Bank Credit (ANBC) on quarterly average basis for the year 2019-20 as against the mandatory target of 10%.

• Lending to MSE-Micro Enterprises stood at Rs 14880.48 Cr as on 31.03.2020 and constituted 9.22% of Adjusted Net Bank Credit (ANBC) on quarterly average basis for the year 2019-20 as against the mandatory target of 7.50%.

• Lending to Non-Corporate Farmers stood at Rs 31846.17 Cr as on 31.03.2020 and constituted 20.81% of Adjusted Net Bank Credit (ANBC) on quarterly average basis for the year 2019-20 as against the mandatory target of 12.11%.

INTENSIVE FARM CREDIT CAMPAIGNS:

• 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 "Intensive Farm Credit Rabi Campaign" from 15.11.2019 to 13.01.2020. and our branches have disbursed a sum of Rs 5217 Cr.

JEWEL LOAN:

Jewel loan has been implemented in 2424 branches as on March 2020 against 2384 Branches in March 2019. The outstanding balance in Jewel Loan under Agriculture is Rs 30357 Cr as against the March 2019 level of Rs 27301Cr with an increase of Rs 3056 Cr.

CREDIT FLOW TO SELF HELP GROUPS:

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 Rs 5195 Cr covering 1.70 lakh SHGs as on March 2020, as against the March 2019 level of Rs 4733 Cr to 1.58 Lakh SHGs, with an increase of Rs 462 Cr over March 2019. During the current financial year, the Bank had disbursed Rs 4081 Cr to 1.05 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 2019 20- , credit amounting to Rs 1149 Cr has been extended to 25348 SHGs through the Microsate branches. The total outstanding advances of these Microsate Branches stood at Rs 1232 Cr covering 38068 SHGs as on March 2020.

• 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 Rs 186.25 Cr covering 11022 JLGs as on 31.03.2020.

Weaker Section Advances:

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.

• Credit outstanding to Weaker Sections stood at Rs 16899 Cr as at the end of March 2020, which works out to 11.94% of Quarterly average ANBC as against stipulated norm of 10%.

• Outstanding credit to SC/ST beneficiaries stood at Rs 2315 crore as on 31.03.2020.

Observance of SC/ST and Minority Credit Campaigns

• Special campaigns were conducted for extending credit to Minoritiesand SC/STs. Outstanding position of advances to Minorities stood at Rs 8511.49 Cr as on March 2020 which works out to 11.78% of total Priority Sector Advances position of the Bank as on March 2020

• During the special campaign conducted for extending credit to Minorities and SC/STs from 01.12.2019 to 31.12.2019, Rs 1927 Cr was disbursed to 32476 beneficiaries.

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 2442 training programmes have been conducted by the INDSETIs up to March 2020 benefitting 67626 individuals so far.

• During FY 2019-20, INDSETIs have conducted 324 training programmes and trained 8714 candidates.

• 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 15th of November 2019. Executive Director, General Manager (RBD/FID), Smt Champakavalli, Project Director, NIRDPR/Hyderabad, Sri Pitchiah, Director/National Academy of RUDSETI/Bengaluru and Sri Vasudeva Kalkundri, Director/NACER/Bengaluru participated in the Conclave.

• 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. A total of 560 training programmes have so far been conducted by RTC, Karaikudi (benefitting 14760 members - up to March 2020) and 559 Programmes by APBIRED, Hyderabad (benefitting 16164 members-up to March 2020).

Dr.APJAbdul Kalam Skill Development Training Institute:

• Bank along with Warna 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 72 programmes and trained 1620 candidates up to March 2020.

AWARDS &ACCOLADES

• NABARD Awarded Indian Bank "First Prize" Among Public Sector Banks For Excellence in Performance Under SHG – Bank Linkage Programme In Tamil Nadu During The Year 2018-19

REGIONAL RURAL BANKS:

The Bank has three sponsored Regional Rural Banks viz, Tamilnadu Grama Bank headquartered at Salem (Tamil Nadu), Saptagiri Grameena Bank headquartered at Chittoor (Andhra Pradesh), and Puduvai Bharathiar Grama Bank headquartered at Puducherry (Union Territory of Puducherry).

In respect of three RRBs, the branch network has increased by 5 from 893 (March 2019) to 898 Branches (March 2020)

The total business of the three RRBs was Rs 38917.37 Cr as of March 2020 as compared to Rs 36005.19 Cr as of March 2019.

( in Cr)
Details as on 31 03 2020 No. of Branches Deposits Advances Business
Tamil Nadu Grama Bank 632 12463.38 12285.30 24748.68
Saptagiri Grameena Bank 223 6523.46 6158.25 12681.71
Puduvai Bharathiar Grama Bank 43 804.14 682.84 1486.98
Total 898 19790.98 19126.39 38917.37

All the three RRBs are profit making RRBs.

RRBs are actively participating in PMJDY, PMJJBY, PMSBY & APY programmes of Govt. of India. The three RRBs are covering 1105 SSA villages under PMJDY and have opened 8.64 lakh accounts under the scheme. The RRBs have also covered 5.77 lakh beneficiaries under PMSBY, 2.50 lakh beneficiaries under PMJJBY and 0.50 Lakh beneficiaries underAPY during the year 2019-20

10. PRADHAN MANTRI JAN-DHAN YOJANA(PMJDY):

• 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 Mitras (Business correspondents) and 458 SSAs through Brick and Mortar branches already functioning in the SSAs.

Highlights of our Banks performance under PMJDY:

• Branches have been opening Basic Saving Bank Deposit Accounts (BSBDA) under PMJDY from 16.08.2014 as advised by DFS. As on 31.03.2020 Bank has opened 40.13 lakh BSBD Accounts. RuPay cards have been issued to 39.72 lakh BSBD account holders under PMJDY. Deposit mobilized in these accounts is Rs 748.40 Cr.

Sanction of Overdrafts: Under PMJDY, our Bank has offered overdraft to 253815 eligible account holders to the tune of Rs 59.86 Cr. Of which 90121 BSBD account holders have availed the limit amounting to Rs 17.95 Cr. Facility of an overdraft to every BSBD account holder would be considered after satisfactory operation/ credit history of six months. Bank has automated the overdraft facility and made available through ATMs of our Bank to the eligible PMJDY account holders.

• Since the inception of PMJDY on 16.08.2014, Bank has opened 40.13 lakh Basic Savings Bank DepositAccounts.

• RuPay Cards have been issued to 39.72 lakh BSBD Account holders.

• All the SSAs allotted to the Bank are covered with either brick or mortar branch or with Bank Mitran.

• All the Bank Mitran 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 1096 during FY 20, 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. During the FY 2019-20, 3.11 Cr AEPS transactions (both financial and non-financial) to the tune of Rs 5573.12 Cr have been done by the BCs. Customer of any Bank can transact with our 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. Under APY, our Banks Persistency ratio is 66%, one of the best in theindustry and is under category-A Bank. The performance of our Bank under the Schemes as on 31.03.2020 is furnished below.

Name of the Scheme No. of customers covered
APY 812664
PMJJBY 1089946
PMSBY 2438404
Total 4341014

• In our Bank, under PMJJBY 5330 claims to the nominees of the insured to the tune of Rs 106.6 Cr and under PMSBY 1288 claims to the nominees of the insured/insured to the tune of Rs 24.80 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 Rs 1 lakh and life cover of Rs 30,000 for the customers who opened accounts between 15.08.2014 to 26.01.2015. Under RuPay Accidental insurance claim 183 claims and under RuPay life insurance, 121 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 disbursed to 6.08 lakh beneficiaries every month through our Bank Mitras in Tamil Nadu.

PFRDAawards:

Makers Of Excellence

• (ME) 3.0 (21 October -21st November 2019) conducted exclusively for Executive Directors of banks: Our Bank has sourced 76,251 APY accounts with an achievement of 361% against the target of 20,000 APY accounts and emerged No. 1 among major banks.

Leadership Capital 2.0 th January – 6th February 2020)

• (6 conducted exclusively for MD & CEOs of banks: Our Bank has sourced 36,498APY accounts with an achievement of 182% against the target of 20,000 APY accounts and stood 1st among major banks.

"Outperformer" award for Nodal office of the Bank (GM – RBD&FID) for achieving Q3 target.

11. CREDIT FLOW TO MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)

• A Department exclusively for MSME is in place which takes care of entire MSME portfolio to accelerate growth in MSME sector by providing focussed attention. Bank is having 14 MSME CPUs which has helped in improving TAT and appraisal mechanism with 12 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.

• Banks exposure to MSMEs grew by 12.59% from Rs 33046 Cr to Rs 37208 Cr during 2019-20.

• Banks exposure to Micro & Small Enterprises grew by 8.87% and 8.70% each respectively during FY 20. Medium Enterprises grew by 42%.

• Bank has surpassed in sub target of lending to Micro enterprises.

• Lending to Micro Enterprises has increased in number by 124210 i.e 16.70% increase during the financial year.

• 4207 MSMEs benefitted under Stand up India Scheme to the tune of Rs 923 Cr from our Bank over a period of three years. – Stand-Up India scheme is for promoting entrepreneurship among SC/ST and Women entrepreneurs.

• Bank along with SIDBI and four Public Sector Banks invested in a fintech company and developed Contactless Banking platform – PSBLOANSIN59MINUTES.com. This enables the MSMEs to submit their loan application and get approval within 59 minutes, on line without any manual intervention. Bank has accorded on-line approvals 277 accounts and regular sanctions through this platform to 115 beneficiaries amounting to Rs 102 Cr during the financial year.

• Bank has designed Structured Loan products to suit the needs of MSMEs including Doctors, Contractors, Traders etc. During 2019-20, seven such products were introduced viz.,

• IB Pure Jal Dhara - For setting of RO Water Kiosks by Micro & Small Enterpreneurs / Enterprises

• IND SME E-Vaahan – For purchase of electric vehicle by MSMEs for their business purpose.

• IND SME Ease - Working capital loan for MSMEs, where the assessment is based on turnover reported in GST returns

• IND Surya Shakti - For setting up of Solar Power plant by MSMEs for captive purpose

• IB Standby WC facility – Credit facility to meet the liquidity crisis faced by MSMEs due to delayed receivables

• Corporate Loans to Medium Enterprises –To improve NWC and / or for any bankable purpose aimed at business development.

• Covid Emergency Loans to MSMEs – In the wake of Covid-19 pandemic, to extend a helping hand to the MSMEs, bank launched Covid Emergency Loans to address the cash flow deficit for meeting overheads like Salary, electricity charges etc.

• Bank is actively participating in all the three TReDS platform (RXIL, Invoicemart & M1xchange) actively. Till 31.03.2020, an universe of 86 corporate buyers have been approved for discounting bills by the Bank. During the financial year 2019-20, 3910 bills were discomted for Rs 547 Cr through the TReDS Platform

• Credit Flow to NBFCs

• During 2019-20, an amount of Rs 6880 Cr has been sanctioned for acquiring assets under Direct Assignment (MSME pooled assets) from NBFCs.

• An amount of Rs 960 Cr sanctioned to 5 NBFC / MFIs for on-lending to MSMEs.

• MSME Clusters: Bank has 27 cluster specific schemes spreading across various zones contributing to our MSME portfolio, with a sanctioned limit of Rs 1672 Cr under the Cluster specific schemes to name a few,

• 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.

MUDRASCHEME

• As against the target of Rs 3400 Crs (including Regional Rural Banks) allocated under Mudra Scheme, Bank sanctioned an amount of Rs 3459 Cr, registering an achievement of 101.73%.

• Under Mudra Scheme, Bank extends loans upto a limit of Rs 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 and Agro processing etc.

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

• 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. In line with RBIs notification dated 01.01.2019 and 17.02.2020, 54167 MSME accounts amounting to Rs 2065 Cr which were in stress have been restructured.

• With effect from 01.10.2019, loans extended to Micro and Small Enterprises are linked to Repo Rate. Till 31.03.2020, 12233 accounts for Rs 1854 Cr were sanctioned with Repo Linked ROI.

12. CORPORATE CREDIT

Corporate Credit of the Bank stood at Rs 77948 Cr constituting 39 % of the overall credit of the bank. During the year, Bank added several new clients to its fold like Afcons Infrastructure Ltd., Chattisgarh Civil Supplies Corporation, Embassy Industrial Parks, Kerala Financial Corporation, Sobha Ltd., Shaporji Pallanji Financial Service Ltd. and Uflex Ltd

13. RETAILASSETS

Harmonization of Products under Retail Assets:

• 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 analysed the Pricing pattern & various charges incorporated under Retail Loan Products of both Indian Bank and e-Allahabad Bank and arrived to have common pricing and charges under Retail Products for the merged entity with effect from 01.04.2020.

Launch of COVID salary loan and COVID Pension loan for existing as well as new customer:

• COVID-19 pandemic has sparked the economic uncertainty in the country. The outbreak is impacting Indian Economy across all sectors. Hence in order to overcome the difficulties faced by the customers, Bank has proposed two new products under Retail Asset Segment

IB COVID-19 EMERGENCY SALARY LOAN (IBCESL)

IB COVID-19 EMERGENCY PENSION LOAN (IBCEPL)

Loan Originating System-LOS

• In order to have a uniform Appraisal, to improve our TAT and Compliance of extant guidelines issued by our bank anEnd to End Automation-Loan Origination System in collaboration with M/s Sysarc Informatics Limited is under development and testing.

Business Enablers:

• Retail Portfolio stood at Rs 38143.90 Cr as on 31.03.2020

• During FY 2019-20, sanctions accorded in 319210 accounts amounting to Rs 18388.70 Cr.

• With effect from 01.10.2019, Rate of interest of all retail products except JL/Loan against liquid securities and education loanshave been linked to External Benchmark rate (Repo Rate).

• Under Repo Rate till -31.03.2020, 44573 fresh accounts were sanctioned to the tune of Rs 4358.95 Cr.

• Under PMAY 5684 sanctions have made during FY 2019-20 amounting to Rs 1074.02 Cr and subsidy amounting to Rs 88.54 Cr has been received for 4163 accounts.

Campaign conducted during the period and its impact.

Bank observed "Home Loan Campaign" attached with Festival Season Offers (till MCLR rates) wherein Zones were advised to focus on various aspects such as:

• Meet the builders at their site /office.

• Speed up the process on more project approvals.

• Focus on obtaining more proposals from the/existing /new projects.

• Publicity in project sites and branches.

DSA/HLC Performance: Bank has empanelled Direct Selling Agent(DSA) And Home Loan Counsellors (HLC) for providing leads. 5217 Home Loan were sanctioned to the tune of Rs 1332.40 Cr from 01-04-2019 to 31-03-2020 through leads generated by these DSAs/HLCs.

Performance under Retail Sector

( in Cr)

Particulars As on 31.03.2018 As on 31.03.2019 As on 31.03.2020 % of growth over March-19
Home Loan 14253.43 18192.81 22493.47 23.64%
of which Home Loan Retail 13971.42 17379.81 20212.05
Home loan Pooled Assets 282.01 813.00 2281.42
Mortgage Loan 2644.68 3158.01 3702.15 17.23%
Vehicle Loan 1466.32 1752.43 1807.78 3.16%
Salary Loan 1504.68 2047.91 2095.45 2.32%
Pension Loan 470.11 523.45 575.93 10.03%
Education Loan 3722.13 3480.93 3503.91 0.66%
Jewel Loan (Non Priority) 665.95 1134.48 70.36%
Loan on Deposits 2738.51 1951.90 2436.98 24.85%
NSC/Others 937.92 393.75 -58.02%
TOTAL 26799.86 32711.31 38143.90 16.61%

Home Loan constitutes 58.97% of Total Retail Assets. Of which Pooled Assets contributes 10.14%.

SOVEREIGN GOLD BONDS (SGB)

An amount of Rs 38.97 Cr was collected in 10 weekly tranches during the FY 2019-20 as follows:

Series Issue Period Amount (in Cr)
1 June 03-07 2019 5.60
2 July 08-12 2019 3.43
3 August 05-09 2019 5.58
4 September 09-13 2019 3.27
5 October 07-11 2019 2.14
6 October 21-25 2019 3.78
7 December 02-06 2019 5.39
8 January 13-17 2020 2.70
9 February 03-07 2020 1.80
10 March 02-06 2020 5.28
TOTAL 38.97

SUKANYASAMRIDDHI SCHEME

3669 new accounts were opened during the FY 2019-20, taking the total number of accounts to 12639. The amount collected during FY2019-20 was Rs 30.01 Cr and the cumulative amount collected was Rs 95.27 Cr.

PUBLIC PROVIDENT FUND

The cumulative collection under PPF accounts rose by Rs 202.21 Cr during the financial year 2019-20 and the cumulative balance in PPF accounts was Rs 1716.79 Cr from 43393 accounts.

BANCASSURANCEAND MUTUAL FUND BUSINESS

Bank has Corporate Agency Arrangement (CAA) with United India Insurance Co. Ltd (UIIC), Chola MS General Insurance Co Ltd for Non-Life / General and Max Bupa Health Insurance Co ltd for Standalone Health Insurance. LIC of India, Aditya Birla Sunlife Insurance Co Ltd (ABSLI), SBI Life Insurance Co ltd for Life Insurance Business. For Mutual Fund distribution, Bank has tie-up arrangement with UTIAsset Management Co. Ltd, Reliance Nippon Asset Management Co. Ltd, SBI Funds Management Pvt. Ltd. TATAAsset Management Ltd and DSP Mutual Fund.

IB Jeevan Kalyan and 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 olders

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.

14.CREDIT MONITORING CELL

Initiatives taken to improve Asset Quality

Maintaining asset quality is the key to profitability. Bank has implemented the following monitoring tools to maintain asset quality. They may be broadly classified as Scrutiny of sanction, Periodical review of accounts, Monitoring through daily signals from EWS (Early Warning Signal) software, Monthly CRM (Credit Relationship Manager) reports, Follow-up of SMAs (Special MentionAccount)

Scrutiny of sanctions

• Mechanism of scrutinizing High Value sanctions. Any errors or omissions can be rectified in the initial phase of the loans. Similarly sanctioning of other loans are scrutinised at Zonal / FGM Offices and necessary corrective actions taken.

• Helps in ensuring asset quality in the initial stage itself.

Periodical review of accounts:

• Review is done through Loan Review Mechanism.

• In addition to financial ratios, operations of the account, parameters like industry level peer comparison, change in management, movement of rating, share price fluctuation, market information etc. are also reviewed.

• To identify loans which develop credit weaknesses and to suggest necessary corrective measures

Monitoring through daily signals from EWS software

• Arobust daily monitoring mechanism.

• All the alerts generated are analysed without any time delay.

• Immediate measures to rectify / recover / exit options are suggested

• Alerts which are serious in nature are analysed for Red flagging and fraud examination

CRM reports

• CRM report is a vital source of signals for EWS alerts.

• Helps in early detection of stress.

• Monthly CRM report is used as an effective monitoring tool for ensuring compliance of sanction terms, studying financial parameters and strengthening asset quality.

Follow-up of SMA accounts

Following monitoring measures have been implemented for minimising fresh NPA slippages.

• Scheduling the Monitoring by the branches (first 10 days, Next 10 days, Last 10 days of the month)

• Nodal officers for follow-up of SMA0 accounts at branch level.

• Guardian officers for follow-up at CO/FGMO /ZO s

• Follow up of CIF based accounts and Group accounts

• Providing Data Enablers to field functionaries for ready reference

• Utilizing Services of BCs/ SHGs/ NGOs/ local leaders/ Government officials etc. effectively for SMA recovery

• Conducting exclusive recovery camps for SMA accounts at cluster level.

• Periodical review of likely NPA slippage% (for curtailing annual slippage to less than 2%)

• Focus on Upgradation of fresh NPAs before quarter/ year end by making an ABC analysis of borrowers and implementing specific strategies.

15.ASSET QUALITY MANAGEMENT

• Bank deployed prudent credit monitoring tools successfully, with continuous and consistent focus on quality of assets, following a system-driven identification of NPA accounts (Non Performing Assets) approach since June 2011. Monthly flagging of NPAs is in effect from February 2016.

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

• Bank recorded good performance in recovery and reduction of fresh NPA during FY2019-20. 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 willful 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, 1613 properties with reserve price amount of Rs 2307.45 Cr brought for sale and 191 properties sold with sale price of Rs 105.44 Cr. Through Private Treaty mode 15 properties were sold with sale price of Rs 23.20 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 37225 pre litigation accounts were referred to Lok Adalat involving an amount of Rs 1130.04 Cr. 2936 accounts were settled with settlement amount of Rs 35.34 Cr and spot recovery to the tune of Rs 6.30 Cr was made.

• In the intensive recovery camps involving door to door campaign held periodically during the year ended 31.03.2020 by all the branches across the country on cluster basis, cash recovery to the tune of Rs 395.67 Cr was made.

• In respect of Bad Debts and Written off (Technically Written off) accounts, an amount of Rs 227.33 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 Rs 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

16.RISK MANAGEMENT

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 is 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 Liability 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 (including Disclosure Policy, Reputational risk management Policy and Strategic 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, Policy on Market Risk Management, Operational Risk Management Policy, Internal Capital Adequacy Assessment Process (ICAAP) Policy (including Stress Testing Policy), Collateral 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 establishments.

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 through credit risk management framework that allows credit risk to be tracked, managed and overseen in a timely and efficient manner

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 September 30, 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).

17.HUMAN RESOURCE MANAGEMENT (HRM)

Manpower Position

The position of manpower in the Bank as on 31.03.2020 is as follows:

CATEGORY TOTAL OBC SC ST MALE FEMALE
OFFICERS 10407 3090 2184 822 7290 3117
CLERKS 7196 2455 1436 287 4067 3129
SUB STAFF 977 274 345 54 809 168
FULL TIME
SWEEPERS 21 3 17 0 11 10
TOTAL* 18601 5822 3982 1163 12177 6424

(* Domestic excluding Part Time Sweeper)

Recruitment Drive

During the year, recruitment in the Bank is as follows:

Scale Number
Officer Specialist Scale 4 2
Officer Specialist Scale 3 14
Officer Specialist Scale 2 24
Officer Specialist Scale 1 4
Clerks 256
Sub-staff 10

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 GM 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 10987 Officers, 5678 Clerks and 294 Sub-staff members were trained through internal training system. Also 382 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.

• Approval of 7 policies as part of HR Policies for the amalgamated entity.

• Approval of 6 Staff Loan Policies for the amalgamated entity.

• Approval of Policy on prevention of Sexual harassment of Women at Workplace for the amalgamated entity.

• Approval of 19 Staff Benefit Schemes for the amalgamated entity.

• Promotion Policy revision in line with government guidelines

• Introduction of Group life insurance scheme for amalgamated entity.

SAP

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 web-site 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 Rs 20 Cr towards staff welfare schemes annually.

18.CUSTOMER SERVICE

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 e-mail marked to any of the mail IDs viz: nodalofficer@indianbank.co.in; customercomplaints@indianbank.co.in

• All complaints received through all the modes by Branches/Zones/CO and not resolved within 24 hours shall be 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 opened at various centres to reduce the transaction time/foot fall in branches besides Passbook kiosk / BNAwhere the volume of transaction is very high.

• Instructed branches to open special counters for senior citizens where the number of pensioners is more.

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

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

• Conducting Staff Meeting and Joint Customer Service Committee Meetings every month to exhibit the grievances from customers of all walks of life.

• All the complaints are taken up with the Branch/Zone/Project office for redressal. Nearly one third 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.

• An execulsive session dedicated in all the training programs / workshops at our training centres for improving the customer service and handling the customer complaints.

• Incognito visits, a technique used by regulatory bodies like RBI are used 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.

Customers Day:

To have an update on the customer expectations/feedback and to have an interaction with the customers, Bank celebrated Customers Day uniformly at all the branches across the Globe on 21.08.2019. The feedback / suggestions received from the customers was 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.

RIGHT TO INFORMATION (RTI)Act 2005

• A separate desk attached to Customer Service Cell at Corporate Office is handling the applications, 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 within the stipulated time period

• No awards against the bank in the year 2019-20

19. FOREX BUSINESS

• Turnover in Foreign Exchange business of the Bank amounted to Rs 30155.80 Cr during the year. Of this, export and other in ward remittances amounted to Rs 11103.74 Cr, while imports and other outward remittances amounted to Rs 19052.06 Cr.

• During the year, the total turnover in the interbank forex market amounted to Rs 505604.15 Cr.

• 81 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 6.05% per cent at Rs 10229.54 Cr for 2019-20 as compared to Rs 9646.33 Cr in the previous financial year.

REMITTANCES

• 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 Exchange Houses viz., 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/sAl Rajhi Bank, SaudiArabia is in place.

INTERNATIONAL OPERATIONS

• Bank has three foreign branches located at Singapore, Colombo and Jaffna. In the month of December, 2019 Bank had commenced its operations at IFSC Banking Unit (IBU) at Gandhi Nagar, Gujarat. Total Deposits and Advances (gross) of the foreign branches (including IBU) as on March 31 2020 was Rs 7433.64 Cr and Rs 8448.95 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 Jaffna Region.

• IFSC Banking Unit (IBU), Gift City situated at Gandhi Nagar, Gujarat commenced its operations in December 2019.

20. TECHNOLOGYAND DIGITAL INITIATIVES:

Bank in order to strengthen Digital delivery channels and to enhance customer experience launched several products. This enabled the Bank to improve the transactions through digital channels which increased by 16 % to reach a level of 45% of total transactions.

Customer Centric Digital products

1. Bank enabled 100% of ATM to accept EMV cards for additional security and reduced card skimming. 100% debit cards migrated to EMV chip cards.

2. NCMC Cards (National Common Mobility Cards): Bank implemented One Nation One Card launched by Honorable Prime Minister of India under Contactless Smart Card Technology and Dual Interface Card can be used as Normal Debit Card for all ATM, Pos and e-Com transactions as well as Offline Wallet for all Tap and Go payments like Metro Stations, Parking, Toll, Retail etc.

3. RUPAY SELECT CARD: Premium Debit Card with inbuilt feature of offers and discounts on wellness related services to the card holders.

4. RUPAY WOMEN DEBIT CARD - RuPay Platinum Debit Cards issued for IB SurabhiAccounts.

5. NCMC compliant RUPAY contactless card - RuPay platinum debit cards with contactless interface for tap and go payment facility of upto Rs 2000 without PIN.

6. IB DIGI Debit Card - RuPay Classic Debit Cards issued for IB-Digi accounts opened through online mode.

7. MasterCard Shop perks Cash back program- Facility to earn cash back on transactions made on MasterCard Debit Cards

8. Internet Banking facility was revamped with additional features ;

Net EASE: Facilitating ease of customer operations under single Net Banking portal.

Online nomination facility: Customers can now make nominations for their deposits using the Internet Banking Services of the bank.

PPF Account opening: Customer can open PPF Account through Internet Banking without visiting branch.

UPI 2.0: Customers can link Overdraft Account to UPI, Issue Mandate andApply for shares.

NEFT 24x7: Online money transfer through NEFT (National Electronic Fund Transfer) round the clock 24x7.

IndPay limit: Fund transfer limit in Mobile Banking (IndPay) enhanced from Rs 50000 to Rs 200000.

NPS Contribution: Customer can do contribution to NPS through Internet Banking.

Email ID update: Facility given to customers to update/change of Email ID online through Internet Banking.

9. IndPay Mobile Application:

Account statement through Email: Customers can subscribe for getting account statement through email in IndPay Application.

• In order to enhance customers user experience in mobile app, additional regional languages Marathi, Gujarati and Malayalam has been introduced.

10. INDADVANTAGE

• A loyalty program was launched to offer value additions to every customer.

• Earn Ind Advantage points on transactions made through Debit Card, Internet Banking and Mobile Banking.

• Ind Advantage points can been redeemed for exciting offers on products and services across categories such as – airline tickets, movie tickets, hotel bookings, mobile/DTH recharge, merchandise, more.

Credit Card:

Preapproved Credit Cards: Platinum credit cards are issued to standard home loan borrowers with a default limit of Rs.1.00 lakh. Maximum limit of the card restricted to 10% of the sanctioned Home Loan limit.

Online application for credit cards: Provision to apply new credit card will be enabled in banks website for Indian Bank customers. Customers will be able to apply credit cards by mentioning Indian bank account number.

Merchant Acquisition Products:

BHIM Aadhaar Pay: In order to promote Digital Merchant Acquisition and to popularize the merchant payment mode among customers Biometric Finger Print Scanner Device for BhimAadhaar Pay were supplied at Nil Cost

IB Collect Plus: A product for enabling customers with software for collecting their collections through Payment gateway. This enables the merchants without software support also to avail the payment platform. Earlier IB Collect is provided only for the merchants with software support. This facility has been extended to various Government Departments, Educational Institutions and Universities as follows :

• Chennai Metropolitan Development Agency

• IIT Madras Fee Collection

• Anna University Fee Collection

• National Board of Examination, Delhi

• Nalanda Open University

• Vellore Institute of Technology

• SRM University

• Madras University

V Collect Plus: An enhancement for the existing product V Collect with value additions like Validation of inward remittance, Status response of successful credit for each transaction sent to the customers server on real time basis, MIS reports sent through automated email to customers mail on T+1 day basis. Some of our customers wherein V Collect Plus has been on boarded are as follows:

• Tamilnadu Cements (TANCEM)

• Karnataka Examination Authority(KEA)

• Tamilnadu Real Estate Regulation Authority (TNRERA)

• Metal Scrap Trading Corporation(MSTC), Kolkata

• Registrar Court of Small Cases Payments of Madras High Court

• GITAM University

• Bar Council Of Tamil Nadu

Centralized Payment Management System (CPMS):Centralized payment platform for corporate and Institutions for enabling bulk payment like salary, etc., using non-PFMS platform.

FASTag: As stipulated by the Government of India, National Electronic Toll Collection (NETC) of NPCI enabled toll collection electronically at toll plaza while vehicle is in motion, through RFID based technology standard. Our Bank has enabled issuance of FASTag through Banks website (online mode) to facilitate our customers avail the service.

Other Digital Initiatives :

Implementation of Digital District –Karaikal:

• As per Government guidelines, Karaikal District in UT of Puducherry has been identified as Pilot District for achieving 100% Digital enablement.

• To achieve this, Our bank has enabled Digital payment channels like Internet Banking, Mobile Banking and BHIM UPI for all the customers and payment receipt channels like QR code/BhimAadhaar Pay for all the merchants.

Digital Campaign for Staff Enrolment in Digital Channels:

• In order to create awareness about the Digital products among staff members an exclusive Digital Campaign for our Staffs on digital products viz. Internet Banking, Mobile banking, UPI, Credit Card, Debit Card usage in POS / e-Com was conducted from 1st July 2019 to 15th July 2019.

Mandate Collect

• ECS mandate for utility payments

• Collecting Bills/Charges by User Institutions holding account with our bank from the customers holding account with our bank/other bank.

UPI Collect

• A solution for the merchants for collection of payment for fees and other charges through UPI mode integrated with the institution/organisations mobile/ web-based app.

• Bank will develop a generic API for any merchants and provide the API for integration with the Institutions Fee/ Billing Collection System (FCS) with Banks UPI system.

MANAGEMENT INFORMATION SYSTEM (MIS):

Business Dashboard using Power BI

• To provide interactive visualizations and business intelligence capabilities with an Simple interface for end users to create their own reports and dashboards, MIS has developed business dashboard using PowerBI. Dashboards and reports developed can be accessed through web browser or by downloading Power BI application from AppleApp Store/ Google Play store

Data Analytics

• To identify and analyze behavioral data and patterns according to our Banks requirements, Data analytics techniques are used to enhance productivity and business gain.

Awards &Accolades FY 19-20 (Digital related):

• Technology Senate award from Indian Express Group for the product "VCollect Plus" for enabling collection through Cash / Cheque at any branch or NEFT / RTGS through any Bank.

• MeitY Award for Digital Payments under Mid Size Bank category for the highest digital transactions

21. INFORMATION SYSTEMS SECURITY

• Banks Information System & Security processes have been certified with 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 security 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 ascertain compliance on certified security environments. Recertification has been issued till February 2021. In addition surveillance audit also has been completed for the year 2020 to ascertain 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 2ndJune 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. Both the Cyber Security Policy and CCMP have been reviewed and renewed after incorporating the best practices.

Information Security solutions to protect customer information

• Bank has already put in place a Cyber Security Operation Centre (C-SOC) which consists of various leading security solutions. Bank has a dedicated team under Chief Information Security Officer (CISO) to monitor the security operations.

• A dedicated IT Infra Security Team is also formed under Information Technology Department to look after the implementation of various cyber security solutions. The solutions are designed to protect the data, network and servers in a proactive way.

• The existing SOC has been reinforced with additional Security Solutions deploying State of the art technologies in order to transform the existing SOC to Cyber SOC to have additional layers of security to strengthen the cyber security resilience and posture of the Bank.

• Bank has taken further steps to make the employees and customers aware of the cyber threats and counter measures. Various steps have been taken to educate them on countering social engineering and phishing attacks.

• Bank has developed and put in place a Business Continuity Plan during the time of COVID-19 pandemic.

• As part of the plan, bank has provided a secured remote connectivity to its employees/vendors to enable them to work from their home.

22. PREMISES

• Bank owns 149 properties in India and 2 properties in Singapore

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

• 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 is made by way of cheque)

GREEN INITIATIVES

Solar Power and LED lighting

• Harnessing of Solar power to Corporate Office is under Green Building (Gold Rating Status). Bank has joined hands with other entity to form Green India by adopting alternative source of energy.

• 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.

• In Chennai, 14 numbers of own buildings, roof top solar power plant was installed.

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

• New branches have been illuminated by installing LED Lamps. Existing branches are being replaced with LED lighting in a phased manner. Presently 1317 branches and 24 Offices are have been provided with LED lighting.

Other Green Initiatives

• Energy Audit is been conducted periodically for branches and offices.

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

23.STATUS OF INDAS IMPLEMENTATION

• Bank has appointed M/s Deloitte Haskins & Sells LLP as consultant for smooth implementation of Ind AS 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 has 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 22.03.2019, Ind AS implementation has been deferred till further notice. However, quarterly submission of proforma Ind AS financials is being continued.

24. INTERNAL CONTROLS

• During the year Risk Based Internal Audit (RBIA) was carried out in 2024 branches.

• 600 branches have been covered under concurrent audit, covering 55.15 percent of total domestic deposits and 71.10 percent of domestic advances as on 31.03.2020. Overall, 62.13 percent of domestic business was covered under Concurrent Audit.

• Risk Based Concurrent Audit is in vogue from 01.04.2013.

• Revenue Audit covering 2803 branches with business exposure of Rs 10 Cr and above was carried out to identify leakage of income, if any, in addition to RBIA and Concurrent Audit.

• Management Audit of 50 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 was 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 Office 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 relating to fraud, comprising, classification, reporting, investigation, monitoring and follow up, closure, surveillance for fraud prevention, pooling of fraud data and analysis of the data for systematic improvements.

25.COMPLIANCE

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 Development Agency etc.

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

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

26. VIGILANCE

Vigilance department is responsible for vigilance administration of the Bank. The Department is guided by Central Vigilance Commission (CVC)/DFS and RBI guidelines on Vigilance Administration. It is the single point of contact for consultations with CVC on vigilance matters. The Department is headed by Chief Vigilance Officer (CVO) appointed by Government of India on the recommendations of 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 (AGM) 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 AGM. 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 CVCs 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 importance of preventive vigilance.

Vigilance Awareness Week 2019

Vigilance Awareness Week was observed from 28.10.2019 to 02.11.2019. The theme of the programme is "Integrity- A way of life". 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 was 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 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, Puducherry, Salem, Tiruchirapalli and Tirunelveli (8 centres) allotted by CVC 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 on how to lead a life that combines righteousness and Integrity was disseminated through these outreach activities to sensitize all and in particular the younger generation.

Human Chains, Walkathons, Cycle rallies were conducted by the Bank at Chennai, Kumbakonam, Coimbatore and Tiruchirapalli apart from holding various Folk arts at several rural/semi urban centres PAN-INDIA during the Vigilance Awareness Week.

Chairman, Advisory Board for Banking and Financial Frauds (ABB&FF) had delivered a special lecture on "Vigilance Administration in Financial Sector" at Corporate Office as part of VAW 2019. CVOs, General Managers and guests from other public sector banks participated in the event. Executives and Branch Managers from Chennai city branches of our Bank had also participated in the event.

27. SECURITY

The objective of Security Management is to provide a safe and secure work environment for the Staff and Customers alike and to protect the assets of the organisation from external aggression. The objective is augmented by integration of technology with human analytics to ensure heightened security network. Incorporation of technological advancement in the field of Physical Security has proved to be more reliable, efficient and cost effective than traditional means of security.

• Banking being a cash rich industry has always been a lucrative target for assailants who adopt new and sophisticated techniques to further their malafide motives. Their acts vary from restrained midnight attempts to more blatant daredevilry viz; train heist, Armed daylight Dacoity etc. It calls for a dynamic active Security Solution as against passive security measures.

• The onerous task of securing our assets is a collective responsibility of all the stakeholders. Towards this end, Branches are now equipped with State of the art Burglar and Fire Alarm systems, HD DVR / NVR based CCTV solutions with emergency communication linkage with designated officials for immediate response.

• Fire being identified as one of the major threat to Branch / Offices, Vital installations like Servers are provided with Automatic (Modular) Clean Agent based Fire Extinguishers to avert / mitigate fire hazards. Fire and Mock evacuation drills are being conducted once in a year in all High rise buildings owned by the Bank and once in two years in all Currency chests as per RBI guidelines.

• Cash is identified to be the most vulnerable while on the move. Hence, in addition to the physical security, GPS based Tracking devices have been installed in all our Cash Vans. The movements of Cash Vans are tracked real time at multiple levels from the respective Currency Chests, Branches and the Zonal Offices.

• Considering the vulnerability of ATM centres, 24 x 7 Electronic Surveillance (E-Surveillance) has been implemented in our Bank Owned ATMs across the country.

• Though electronic security is reliable and effective, it is required to be placed under periodic review to ensure serviceability and functionality. In order 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 security systems, devices and mechanisms available in the market are comprehensively studied, assessed for performance and systems upgraded / replaced / introduced as per feasibility with the approval of Top Management. Additionally, recommendations and guidelines on security arrangements in Banks / ATMs / Currency Chests as and when prescribed by IBA and RBI are also being implemented.

• Security Management is a part of Operational Risk Management. Unlike Financial Risks the physical risks to Banks assets can be protected by effective security systems. Security Management perforce is required to be dynamic and should evolve with emerging trends. The need for Risk assessment and its revision is imminent. Hence, based on threat perception and prevalent security scenario, comprehensive evaluation is carried out once in three years. Branches are classified based on security risk and additional security measures initiated based on assessment.

• The department is duly supported at the field level by Security Officers (Ex Servicemen) at respective Zones who are crucial in ensuring that the guidelines / instructions / policy of the Bank are implemented at the Branches, ATMs and 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.

• In order to ensure Security measures are intact and Staff are aware of the Security precautions, Zonal Security Officers conduct Security inspection of all Branches / ATMs once a year and upload the reports in the Online - In House Module designed at various levels – Branch, Zonal Office & Corporate Office. The Currency Chests being a High risk entity, are inspected on a quarterly basis and timely rectification of observations ensured.

• 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. In House module has been designed which can be accessed at all levels to comprehend the level of compliance.

• With a view to keep the Security Officers abreast on the latest technological advancement, updates on Security and to review the performance during the preceding period, Annual Training of Security officers is carried out once a year. The best practices derived during the training are taken for implementation in their respective Zones. LIVE firing practice is conducted for armed guards, every year.

• Security Aspects highlighted during the State Level, District Level Security Committee and Standing Security Committee Meetings are disseminated to respective Zones .

• Precaution and Prevention - is the crux around which our Security Department is established. Bank has adhered to Asset Protection Measures and followed procedural safe guards during cash remittance for safety of Banks assets. Security Officers of our beloved Bank being Veterans from the elite Armed Forces are protecting the interests of the Bank as their prime concern.

28. AMALGAMATION OF ALLAHABAD BANK INTO INDIAN BANK

Department of Financial Services (DFS), Ministry of Finance (MoF), Government of India (GOI) vide their letter no. F. No. 7/93/2019-BOA.I dated 30th August 2019, communicated that the Alternative Mechanism (AM) after consultation with the Reserve Bank of India (RBI) decided that Indian Bank and Allahabad Bank to consider amalgamation of Allahabad Bank into Indian Bank.

Notification of Government of India:

The Gazette of India, Extraordinary vide notification G.S.R. 156(E) dated 04.03.2020 approved the amalgamation of Allahabad Bank (Transferor Bank) into Indian Bank (Transferee Bank). As per this, the amalgamated Bank came into being from 1 April 2020.

Rationale for amalgamation

The growth in the Indian economy with doubling in size in the last six years to $ 2.8 trillion in FY2019 led to a massive expansion in the banking space in terms of business as well as the number of banks. To be more efficient in the changing environment, banks in the public sector space need to be bigger to meet the credit needs of a growing economy, absorb shocks and have the capacity to raise resources from the market without depending on the government.

Further, going ahead, to meet the financing needs of the Governments envisioned $ 5 trillion economy, a strong and resilient banking system is imperative. Public Sector Banks which command more than 70% of the market share should be strengthened to meet the credit demands of the growing economy.

Indian Bank has been performing well with a sound capital base and recording profit continuously. Allahabad Bank was put under Prompt Corrective Action in January 2018 restricting its lending capabilities. The Bank came out of PCA in February 2019.

The rationale for amalgamation is based on five broad themes:

a. Larger Balance sheet size & optimized capital utilisation.

b. Wider Geographic reach leading to deeper penetration.

c. Access to larger talent pool.

d. Sharing and scale of product capabilities and platforms with greater cross sell across segments.

e. Increase in operational & process efficiencies through scale benefits and elimination of duplication.

The amalgamation would enable creation of a bank with significant scale and capability to compete effectively. Indian Bank with its pan India presence has higher concentration in Southern part of India with 60.8% of the total branch network, while Allahabad Bank has 70.3% of its Branch network in Central and Eastern region. With the amalgamation, the combined entity has 6101 branches with scope for improving in the western region of Gujarat & Maharashtra.

Further, the combined entity is supported by the micro level touch points viz., 9128 Business correspondents. This will help the Bank to make further inroads contributing to the financial inclusion in the Rural/Semi urban areas.

Brief History of Allahabad Bank & Indian Bank:

The amalgamation of Allahabad Bank into Indian Bank is integration of 2 banks with rich & historic lineage and culture. While Allahabad Bank is the oldest public sector bank – (155 years) set up as a joint stock company by a group of Europeans in 1865 at Allahabad, Indian Bank was born out of Swadeshi movement in 1907 (113 years).

Indian Bank:

• Headquartered in Chennai, Bank came out with its Initial Public Offer in 2007.

• Profit making bank since 2002.

• Having branches in 3 Overseas centres of Singapore, Colombo & Jaffna.

• Sound capital base with higher CRAR of 14.12% as on 31.03.2020.

Allahabad Bank

• In 1923, the Head Office of the Bank shifted to Kolkata on Business considerations.

• Came out with Initial Public Offer (IPO), of 10 crores share of face value of Rs 10 each reducing Government shareholding to 71.16% in October 2002.

• In April 2005, follow on Public Offer (FPO) of 10 crores equity shares of face value of Rs.10 each with a premium of Rs 72 was made, reducing Government shareholding to 55.23%.

• Bank initiated the process of transformation with the project "Navodaya".

Amalgamation Process

Taking cue from the seamless integration that can be seen in the confluence of the holy rivers with different characteristics, the amalgamation process was aptly named as "Project Sangam".

"Project Sangam is about a new bright future for all of us, with new colleagues within the Bank to move with, and new customers to serve" – Ms Padmaja Chunduru, MD&CEO, Indian Bank.

"Project Sangam is the coming together of two banks with rich legacies, unique strengths and with deep contribution to our nations growth"- Mr K Ramachandran, Executive Director, Allahabad Bank.

Project initiatives

• More than 20 Integration committees were formed and critical steps have been taken for seamless integration on "Day 1" - 01.04.2020.

• Integration Management consultants, IT Consultants and technical advisors are engaged for this project.

Communication with Customers/ Employees

• MD & CEO, Indian Bank visited Allahabad Bank Head Office

• Executives and Officers of two Banks visited each others Corporate/Head Office to have better understanding towards harmonisation/adopting best practices.

• MD & CEO also met Chief Secretary and other top Government officials of Uttar Pradesh.

• MD & CEO along with ED, Allahabad Bank met the Honble Chief Minister of Uttar Pradesh and apprised contribution made by two Banks in UP and also the developments made in amalgamation process.

• MD & CEO along with ED, Allahabad Bank visited the historic branch of Allahabad Bank –Allahabad Branch

Town Hall Meetings

Town hall meetings conducted in Chennai, Vijayawada, Kolkata, Hyderabad,Allahabad & Lucknow.

Ms. Padmaja Chunduru, MD & CEO stressed the need of enthusiastic participation of the employees for the positive outlook of the amalgamated entity. It was also assured that customers will continue to be the focal point for both the entities and solicited their continued patronage

Glimpses from Town Hall Meetings

Team Building

• Common Workshop designed to develop team spirit among Executives, Officers & staff of both Banks.

• Three Workshops conducted in Kolkata, Lucknow and Chennai for Zonal Managers of both the Banks

• Faculty members and Deputy Zonal Heads from both the banks have been trained on the harmonized products, processes, policies, IT, etc. and they are named as ChangeAgents at the apex/Zonal level.

• They, in turn, trained the designated Officers (Integration Champions) at branches.

Change Agents / Integration Champions

• Training programme for Change Agents – Train the Trainer was conducted through VC on 16th and 17th March 2020.

• These Change Agents and Operational Experts form part of the Zonal Control rooms in all the Zones of the amalgamated entity and also at Corporate Office. They are guiding the branches and frontline staff for smooth and uninterrupted flow of service to customers.

• In addition to Change Agents, a team of IT Officers is in place to supplement as Integration Champions for IT integration and they are supporting field functionaries.

Portal for employees "IB-AB Parivaar"

• IB-AB Parivaar - A staff Portal was created for employees of both the Banks to air their concerns/ doubts.

• Queries were responded at the earliest possible time

• Best suggestions were rewarded with merit certificate –IB-AB Sangam Puraskar

Portal for customers of IB-AB

• The online Customer Portal with FAQs was launched on both the banks websites.

• Timely responses are being given by departments.

Culture Survey

• Culture Survey was conducted for the employees of both the Banks

• More than 15000 employees participated.

• The survey was done to analyse the cultural traits of both the Banks and define the future cultural strength of the amalgamated entity.

• The positive aspects of the findings are properly directed towards achieving the larger objectives by creating a unified team-based culture.

Change management survey

• Feedback survey was conducted to understand the gaps in sharing the information with field level functionaries, knowledge about the new products and services, awareness about the change in policies and circulars, FAQs, handling of clients and transaction of both the banks etc. The survey was prepared by M/s Deloitte in consultation with IMO and it was conducted for Branch Managers and Zonal Managers of both the banks.

• The response of the survey has been captured and M/s Deloitte is analyzing the responses to identify the Gaps if any.

Ind Guru

In view of Covid-19 lockdown and for improving the knowledge/skill level, Learning Management System (LMS), Ind Guru, an e-learning platform for all the employees of the Bank was launched on 24.04.2020 and has gone live successfully on 22.05.2020. The tech-driven platform which is aimed at capacity building of HR in the Bank, offers – access to on-demand, anytime, anywhere learning (through we portal as well as mobile app), self-placed learning, content across divisions to ensure cross-functional learning and skill development.

New Organizational Structure

• Organizational restructuring has been carried out for increasing the efficiency and better management of the verticals and manpower:

• Risk and control functions strengthened with addition of new departments headed by General Managers for KYC/AML, Credit Review Corporate Strategy and Business Process Reengineering & investor relations.

• 14 Field General Managers and 78 Zones to drive the business of branches having pan India presence.

• Large Corporate Branches (LCBs) and Mid Corporate Branches (MCBs) to cater to the needs of the Corporate and Mid Corporate borrowers.

• Existing concept of processing centers viz., Customer Acquisition Processing Centres (CAPC), RMPCs and Kisan Pragati Kendras (KPKs) in e-ABs will be adopted in the amalgamated entity.

• A broad roadmap drawn up for rationalization of Administrative Offices like FGMOs, ZOs, Inspection Centres, Service Branches, SAM branches and Corporate Branches.

29. DIRECT MARKETING:

Brand Management on Social Media

• Indian Banks Official Facebook, Twitter, YouTube, Instagram and LinkedIn handles were managed and product promotion and information dissemination was done on it.

• Complaints / queries in respect of Facebook, Twitter, Instagram, LinkedIn/complaints/queries were managed timely.

• Specific content was developed and promoted on our social media channels related to field activities, commemorative days, occasions andbanks achievements.

• Interactive Gifs and video Posts were created for Instagram , Facebook story post and Festival wishes.

• Banks Official Facebook Page, namely @MyIndianBank made over 1545 posts and added over 549122 likes during FY 20.

• Banks Official Twitter Channel @MyIndianBank made over 632 tweets during FY 20.

• Banks Official YouTube Channel Indian Bankadded 17 videos this year. It has overall 7932 subscribers and 20.14 lakhs of views.

• Banks Official Instagram Channel @MyIndianBank made 1625 posts and nearly 33665 users

• Banks Official LinkedIn channel IndianBank made 338 posts and 7501 followers.

Engagement Contests on Facebook, Instagram & Twitter pages

The objective of these contests is to promote and build awareness about Indian Bank and engage more people on our social media pages. Facebook, Twitter and Instagram pages were used extensively. 9 campaigns/ contests were conducted during World Book Day, Mothers Day, Diwali, Christmas, and as the lanch of ind advantegs. Over 18 lakh impressions were clocked during these promotions.

Indian Banks Official News letter-"Ind Navya"

"IND NAVYA" is the monthly e-newsletter that keeps our existing and prospective customers up to date with banks customer-centric initiatives like launch of new products and services, features, promotional offers, campaigns, achievements, network expansion, events, government directives, etc. It is available on website and is sent via emails to customers as well. 12 editions were releases during this year morethan1.8 Cr emails were sent.

Website Management

Over 60 images were uploaded on our website, with necessary changes in template to make it more accessible and comprehensive .

Introduction of IVR facility on Call Centre:

IVR facility on our Toll-free no: 1800 425 00000 was introduced with Balance Enquiry, Last 5 Transactions and Cheque Stop

Banks Loyalty Programme:

• Ind Advantage – Banks first Loyalty Programme was officially launched on 13.09.19. Under this new Programme, our customers can now earn reward points for transactions on 3 channels namely Debit Card, Net Banking and Mobile Banking. The points thus earned can be redeemed for vouchers or kind on a reward website (www.indadvantage.com) or mobile app or in real-time against bills at select merchant establishments. During FY20, over 100 Cr points were awarded for more than 12 Cr transactions. 31% growth in spends was registered during the last quarter.

Improving Image, Publicity and Visibility

• Created and Uploaded soft copies of Danglers, Banners, Posters, etc. for field-level functionaries located at Branches, Zonal Offices and other offices

• Advertisements(Ads) on Radio and TV

• Out-of-home Ads.: sho casing our products using tri vision honardings, digital signage panals and asd at bus shrlters

• PrintAds:

Details of Marketing Campaigns:

• Lead Generation Campaign for IB Digi on Cricbuzz

• Cash Rewards Campaign on IB Debit Card

• Cashback Campaign on IB Debit Card on BookMyShow

• Lead Generation for Home Loan and Vehicle Loan on DailyhuntApp .

30. CORPORATE COMMUNICATION INITIATIVES

External Communication

• During 2019 -20, Bank focused on various activities to reach out to customers with customer centric products, educating various schemes of Government, achievements and welfare for the general public.

• Banks 113th Foundation day at IMAG, Chennai. duly participated by staff menbers and coustmers

• Bank has organised several press conferences/meets, special interviews on various occasions including launch of new technology products, Melas, Financial results and important events like Vigilance Awareness Week, Swachh Bharat Drive etc.More than 80 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 the Financial Results, Launch of technology products, Loan Melas, Swachh Bharat Pakhwada, Pan-IndiaBlood/Organ Donation Camps, 113th Foundation Day Celebrations etc.

• Outdoor campaigns were accelerated through advertisements at Chennai / Madurai / Pune / Tirupati railway stations Mobile charging units at 26 railway stations at Chennai & suburbs, busbay pillars at CMBT Bus terminus and Bus shelters at Chennai.

• Outdoor advertisement campaign done at major 10 Delhi Metro Stations. Similarly, passenger trolley branding / Hoardings were put up in Chennai airport / railway stations at Chennai and Madurai.

• Advertisements were released in various dailies during the Independence day, Republic day, Diwali and other important occasions.

• Anew mnemonic was designed to mark Banks 113th 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 through Helpdesk. 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.

31. CORPORATE SOCIAL RESPONSIBILITY:

• 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:

• Women Empowerment: Donation of sanitary napkin vending machine and incinerator to Quaid-E-Millath Womens College, Egmore, Chennai.

• Inclusive Growth: Sponsorship towards infrastructure development at Thaai Madi Trust, an OldAge Home at Salem (14.5 lakhs)

• Green Initiative: Sponsorship towards water conservation works under Government of India – Jal Shakti Abhiyan programme by DRDA, Villupuram District.(7 lakhs)

• Financial Literacy & Enhancing vocational skills: Contribution towards construction of INDSETI building at Vellore. (10 lakhs)

CSR Highlights:

Swachhata Hi Seva

The Bank has launched Signature Campaign against use of Single-Use Plastic as part of Swachhata Hi Seva. Ms. Padmaja Chunduru, MD & CEO inaugurated the Signature Campaign at Corporate Office.

Two of our Basketball players have found place in the Senior Indian Team which won Gold Medal in 13th South Asian Federation Games held at Kathmandu, Nepal.

Our Bank Basketball players Shri Muin Bek, Shri R.Hariram, Shri Baladhaneswar, Shri Genib Benny and Shri A.Surya represented the Tamilnadu Senior State Basketball team and won silver medal in the 70th Senior National Basketball Championship held at Ludhiana, Punjab from 21st to 28th December 2019.

Two of our Volleyball players have found place in the Senior Indian Team which won Gold Medal in 13th South Asian Federation Games held at Kathmandu, Nepal.

Indian Bank Volleyball Players Shri L.M.Manoj, K.Surya Prakash, Mohan Kumar and Midhun Kumar represented Tamilnadu Senior State and secured Silver Medal in the 32nd Federation Cup Volleyball Championship conducted by Volleyball Federation of India held at Amritsar, Punjab from 27th September to 3rd October 2019.

Implementation of Official Language

• Bank is actively implementing the Official Language Policy of the Government of India based on the Official Language Act, 1963 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, activities related to the Official Language implementation of the Bank is prepared and it is sent to Zonal Offices for necessary action. A Master Circular is also issued every year in this regard.

• Understanding the need and effectiveness of the Swachh Bharat Abhiyan, with the aim of spreading awareness on cleanliness, a pictorial desk calendar for the year 2020, incorporating the views of Mahatma Gandhi on cleanliness, has been prepared in Hindi.

• The Quarterly Hindi Magazine "Ind – Chhavi" is being published by Corporate Office. Quarterly / Half yearly Hindi Magazines are published by the Zonal Offices also with special emphasis on the Banking Topics along with other essential subjects.

• As part of Hindi Month Celebrations – 2019, 10 Hindi competitions were organized for staff members in our Corporate Office from 19.08.2019 to13.09.2019 and 3 Hindi competitions were conducted for children of staff members on 01.09.2019. Hindi Day, Hindi week etc were also organized at Zonal Offices.

• An exclusive Hindi web-page in our Banks Web-site was inaugurated on 23.09.2019 by our MD & CEO during the vale dictory function of Hindi Month 2019. Top executives of our bank also graced the Occasion.

• The "Banker - Grahak Samvad" book was released on 23.09.2019 during the valedictory function of Hindi Month 2019.

• Banks website is fully bilingual. Banks Mobile App – "Ind-Pay" is available in six languages (Hindi, English,

Tamil, Marathi, Malayalam and Gujarati). All the required forms and formats are available in bilingual / trilingual form. Banners, posters and pamphlets etc. are made bilingual / trilingual.

• An all-India Inter-Bank Hindi Essay Writing Competition on the "Importance of Amalgamation of Banks in Indian Economy" was organized by our Bank during November-December 2019.

• The Bank organized an All-India Hindi Seminar on the "Importance of Amalgamation of Banks in Indian Economy" on 27nd December, 2019 at Kolkata. A compilation of the best 24 entries received was published in a book form and released during the course of the seminar.

• Hindi words are being displayed on the helpdesk, which to learn Hindi.

• During the year 2019, 33 staff members have passed the Prabodh, Praveen and Pragya examinations conducted by Hindi Teaching Scheme, Government of India.

• Special emphasis on training staff members through Hindi workshops.Hindi workshops are being organized regularly at IMAGE, Staff Training Centers and various Zonal Offices with special attention to practical training.A total of 48 Hindi workshops were organized during the year in which a total of 535 staff members including 315 officers and 220 clerks were trained.

• A workshop was organized for Executives at IMAGE on 07.11.2019 on the topics "Small notings in Hindi" and "Conversational Hindi", in which a total of 19 Executives from Corporate Office, Zonal Offices and Branches participated.

• Official Language inspections of branches are being done regularly and staff members are also given desk training to ensure the implementation of Official Language.

• The Official Language Implementation Committee meetings are organized regularly in Corporate Office and Zonal offices of the bank.

• Selective offices of the Bank have been entrusted with the responsibility of management the Town Official Language Implementation Committees by the Government of India, which are being handled with full commitment:

• The Town Official Language Implementation Committee (TOLIC) Chennai (Bank & Fis.) was awarded the third prizeunder Regional Official Language Award by the Regional Implementation Office (South-West)for the excellent implementation of Official Language.

• In addition Zonal Offices of Madurai, Pondicherry, Hubli, Mumbai, Kolkata, and Chennai North have been awarded by TOLICs for outstanding contribution towards implementation of Official Language at their respective Offices.

• A Official Language awareness programme and Hindi Sangeet Sandhya were organized under the aegis of TOLIC (Banks/FIs), jointly with Indian Bank on the occasion of World Hindi Day on 10.01.2020 at Corporate Office, Chennai.

• Under the aegis of TOLIC, Chennai (Banks &Fis), Reserve Bank of India, Chennai organized a Seminar on the topic – "Various aspects of Banking" on 29.05.2019, which was presided over by our Managing Director and Chief Executive Officer, Ms. Padmaja Chunduru.

• The "Chennai Bharathi"magazine published by Chennai TOLIC (Banks/FIs) was released.

• Meetings of TOLIC (Banks/FIs),Chennai are being held regularly.