State Bank of Travancore(Merged)
Directors Reports
DIRECTOR
Report of the Board of Directors to the State Bank of India, the Reserve Bank of India
and the Central Government in terms of Section 43(1) of State Bank of India (Subsidiary
Banks) Act, 1959.
Period covered by the Report: 1st April, 2013 to 31st March, 2014
1. MANAGEMENT DISCUSSIONS & ANALYSIS
1.1 Global Economy
Global growth is likely to be in the vicinity of 3 per cent in 2014-15, about a
percentage point higher than in 2013-14. The expansion in global output is expected to be
led by Advanced Economies (AEs), especially the US. However, downside risks to growth
trajectory arise from ongoing tapering of Quantitative Easing (QE) in the US, continuing
de_ation concerns and weak balance sheets in the euro area and inflationary pressures in
the Emerging Market and Developing Economies (EMDEs). Weakening growth and financial
fragilities in China that have arisen from rapid credit growth in recent years also pose a
large risk to global trade and growth.
Global inflation remains benign with activity levels staying below potential in the
Advanced Economies as well as in some of the large emerging market and developing
economies and a softer bias for global commodity prices continuing into 2014.
The global financial markets have weathered the initial dose of actual tapering of the
Quantitative Easing (QE) by the US Fed, quite well. However, the global interest rate
cycle has just begun to turn. Any large withdrawal of monetary accommodation by advanced
economies and consequent effect on capital flows to and from Emerging Market and
Developing Economies (EMDEs) could lead to volatility and could translate into liquidity
shocks impacting asset prices.
1.2 National Economy
GDP growth has been stagnant at around 5% during the year. This is attributable to the
continued weakness in industrial activity and supply side constraints.
A moderate recovery is likely to set in 2014-15 broadly in line with the Reserve
Banks indicated projections in January 2014. The recovery is likely to be supported
by investment activity picking up due to part resolution of stalled projects and improved
business and consumer confidence. Manufacturing PMI, for the month of February 2014,
touched a years high on the back of higher output and new orders. The rural demand
base is likely to shore up demand, following record agricultural output.
While the global environment remains challenging, policy action in India has rebuilt
bu_ers to cushion it against possible spill overs. There was curtailment of deficit (both
Current & Fiscal). There was also adjustment of rupee exchange rate and replenishment
of foreign exchange reserve which resulted in lowering of risk of near-term macro
instability. However, more efforts in terms of removing structural impediments, building
business confidence and creating fiscal space to support investments will be needed to
secure growth.
1.3 Kerala Economy
Keralas economy is one of the fastest growing economies in the country. Kerala
has won international recognition for its outstanding achievements in Health and Education
sectors. The prime driver of the economy still is the remittance from abroad by 22 lakhs
Non- Resident Indians, mainly from Gulf Countries. Economy in Kerala is supported by
traditional industries. Coir, Cashew, Bricks and Tiles, Oil Milling, Handloom and Timber
employ 83% of the total work force in the industrial sector.
Kerala contributes 97% of national pepper production and accounts for 85% of the area
under natural rubber cultivation in the country. Coconut, tea, coffee, cashew, and spices
including cardamom, vanilla, cinnamon, and nutmeg form a major part of the
agricultural sector. In addition to this, rice is extensively grown in Kerala.
Nevertheless, home gardens comprise a significant portion of the agricultural sector.
Tourism continues to flourish and plays an important role in the States economy.
IT sector is on a growth path with flagship Techno Park at Thiruvananthapuram and Techno
City at Ernakulam gaining further momentum. The proposed Info Park and Smart City near
Kochi, are expected to propel Kerala to become one of the leading IT destinations in the
country. Mega Projects like Vallarpadam International Container Trans-shipment Terminal
will give a fillip to the economy. The proposed Vizhinjam International Deepwater
Multipurpose Seaport at Thiruvananthapuram is expected to give boast to the States
economy. The Kannur International Airport project is expected to transform the North
Malabar region into a highly developed Centre for Travel, Tourism and Industries.
1.4 Banking Environment
The resilience and stability of the domestic financial system have become essential to
the countrys macroeconomic stability, particularly in an increasingly integrated
world. Indian Banking sector demonstrated strong resilience during the global financial
crisis and was able to maintain stability. In India, reforms have continued with a view to
building a robust and resilient financial system. More stringent capital and liquidity
measures for Commercial Banks have been implemented and steps have been taken to build up
Capital Conservation Bu_ers (CCB). RBI has initiated the steps for implementation of the
Basel III norms embedded with provisions and guidelines for higher capital adequacy. The
key focus areas for Indian Banks include, liquidity management; gainful deployment of
funds; availability of cheaper technology to serve thinly populated unbanked areas;
grooming suitable replacement for large number of experienced manpower due for retirement;
IT security; advanced Risk Management approaches; and introduction of innovative products.
The Indian Banking sector is continuing to grow with rapid transformation, with almost all
the Banks having migrated to Centralised Core Banking Environment, supported by technology
enabled products viz. mobile banking, net banking and smart cards.
1.5 ASCB Performance
All Scheduled Commercial Banks Deposits grew by Rs 9,87,970 crore (14.63%) between 22nd
March, 2013 and 21st March, 2014 to reach a level of Rs 77,39,390 crore as on 21st March,
2014. The Gross Advances grew by Rs 7,50,260 crore (14.25%) in the same period to touch a
level of Rs 60,13,090 crore. Food credit increased by 2.13% to touch Rs 98,480 crore. Non
Food credit grew by 14.48% and reached the level of Rs 59,14,610 crore.
1.6 Regulatory Measures and Monetary Policy
The year 2013-14 witnessed a series of monetary measures initiated by Reserve Bank of
India to contain rising inflation and arresting the weakening of rupee. Further,
liberalisation in the Branch Authorisation Policy and adoption of more stringent security
measures for electronic payment system were announced. The Reserve Bank of India granted
"in-principle" Bank license to Infrastructure Development Finance Co and Bandhan
Financial Services Ltd.
Some of the main policy changes and reforms announced by RBI during the year were as
under:
Repo rate moved from 7.5% to 8%.
Cash Reserve Ratio (CRR) of Scheduled Commercial Banks maintained at 4.0 per
cent of Net Demand and Time Liability (NDTL).
Increased liquidity provided under 7-day and 14-day term repos.
The reverse repo rate moved in tandem with repo rate and is presently at 7.0 per
cent.
The Marginal Standing Facility (MSF) rate and the Bank Rate are presently at 9.0
per cent.
Under the new RBI Branch Authorisation Policy, Banks can now open branches
without taking prior permission from RBI, subject to reporting. To provide enhanced
banking services in Tier 5 and 6 centres (Rural), domestic Scheduled Commercial Banks
should necessarily open 25% of the branches, in unbanked rural centers.
RBI has stipulated higher provisioning norms on Restructured Assets.
2. The Banks Operations and Performance
2.1 Total Business
The Banks gross business crossed Rupees One Lakh Sixty
Thousand crore during FY 13 14. The total business of the Bank reached the level
of Rs 1,60,119 crore as on 31st March, 2014, from
Rs 1,52,108 crore as on 31st March, 2013 showing a growth of 5.27%.
It comprises of a total deposit of Rs 89,337 crore and Gross Advances of Rs 70,782
crore.
2.2 Working Results and Operating Profit
Operating profit (after Staff Provisions) for the year ended 31st March, 2014 stood at
Rs 1,369.69 crore as compared to Rs 1,351.00 crore recorded for the year ended 31st March,
2013. Net Profit for the year stood at Rs 304.34 crore as compared to Rs 615.04 crore for
FY 201213, showing a decline of 50.52%.
The earnings per share (face value of Rs 10) was Rs 60.87 as on 31.03.2014 as against
Rs 123.01 as on 31.03.2013.
The Net Interest Income increased by 11.98% from Rs 2,128.20 crore in FY 2012-13 to Rs
2,383.15 crore in FY 13 -14. Net interest Margin (NIM) stood at 2.43% as on 31.03.2014.
2.3 Dividend
The Bank declared a dividend of Rs 2.50 per share (25%) for FY 2013-14, entailing a
total payout of Rs 12.50 crore. The dividend payout Ratio works out to 4.11% of the Net
Profit.
2.4 Capital Adequacy
The Capital Adequacy ratio under Basel II stood at 11.52% as on March 31st, 2014 as
compared to 11.70% as on March 31st, 2013, against a minimum of 9% stipulated by RBI.
Under Basel III, the Banks capital fund improved from Rs 5,671.43 crore as on 1st
April, 2013 to Rs 6,357.63 crore as on 31st March, 2014. This also includes, an amount of
Rs 385 crore received from State Bank of India towards preferential allotment of Equity
shares, pending allotment. The Capital Adequacy Ratio under Basel III improved from 10.74%
as on 1st April, 2013 to 10.79% as on 31st March, 2014.
2.5 Deposits
Banks Aggregate Deposits showed a growth of 5.54% and stood at Rs 88,707 crore as
on 31st March, 2014 compared to Rs 84,047 crore in the previous year. The Personal Segment
Deposits recorded an impressive growth of Rs 9,656 crore (18.36%) during the year, to
reach a level of Rs 62,247 crore, which constituted 70.17% of Aggregate Deposits.
NRI Deposits also recorded an impressive growth of Rs 5,651 crore (29.26%) during the
year, to reach a level of Rs 24,963 crore. It constitutes 28.14% of the Aggregate Deposits
of the Bank as on 31st March, 2014.
Total Deposits of the Bank (including Inter Bank Deposits) stood at Rs 89,337 crore as
on 31st March, 2014 as against Rs 84,624 crore as on 31st March, 2013.
2.6 Advances
The Gross Advances of the Bank stood at Rs 70,782 crore as at the end of 31st March,
2014 as against Rs 68,389 crore a year ago, registering a growth of 3.50%. Personal
segment advances grew by Rs 374 crore and reached a level of Rs 18,294 crore, whereas the
C&I segment declined by Rs 311 crore and reached a level of Rs 34,901 crore.
The Retail lending stood at Rs 35,881 crore and constituted 50.69% of the Gross
Advances as at the end of 31st March, 2014. .
The Credit Deposit Ratio of the Bank as on 31st March, 2014 was 79.23% as against
79.75% a year ago.
2.7 Market Share
The Banks market share in ASCB Deposits was 1.16% as on 21st March, 2014 as
compared to 1.22% as on 22nd March, 2013. The market share in Advances has come down from
1.25% as on 22nd March, 2013 to 1.16% as on 21st March, 2014. The Banks All India
Market share in total business as on 21st March, 2014 stood at 1.16%. (Source: RBI).
The Bank continued to maintain its position as the premier Bank in Kerala, with a
market share of 21.32% in business among all Commercial Banks ( as at the end of December
2013) with a 14.06% share of the total branch network. In respect of NRI deposits, our
market share in the State was 24.24%. (Source SLBC, KERALA)
2.8 Priority Sector Lending
The Bank continued to give special emphasis on lending to the priority sector in
conformity with national policies, expectations and fulfillment of social objectives.
Banks Gross Advances to the Priority sector increased from Rs 24,378 crore as at the
end of March 2013 to Rs 29,179 crore as at the end of March 2014 and constituted 42.26% of
the Adjusted Net Bank Credit (ANBC), against the benchmark of 40%.
2.9 Agricultural Finance
The Bank disbursed an amount of Rs 10,408 crore under Agriculture segment as at the end
of March 2014 against the Special Agricultural Credit Plan target of Rs 7,200 crore.
Agriculture segment showed a growth of Rs 1,137 crore during the financial year 2013-14.
Exposure to Agriculture segment reached a level of Rs 13,212 crore as on 31st March, 2014,
which is 19.13% of ANBC, against a benchmark of 18%.
Haritha Campaign
The Bank conducted an intensive Agriculture lending campaign covering all agriculture
loan products, called "HARITHA CAMPAIGN" during the financial year 13 14.
Farmer Clubs
Farmer Clubs meetings were conducted at various centres to give wide publicity to
the schemes available to farmers. Meetings were also conducted on the occasion of
Farmers Day.
2.10 Lending to Micro, Small and Medium Enterprises (MSMEs)
MSMEs play a major role in the countrys economic development. The Bank gives due
importance for the growth of this vital segment of the economy. Total lending to MSME
sector as on 31st March, 2014 stood at Rs 11,460.54 crore, registering a growth of Rs
2,230.31 crore over the previous year. The lending to Micro and Small Enterprises (MSEs)
stood at Rs 7,774.10 crore which is 37.37% higher over the previous year level.
The growth in this sector was fuelled by an intensive MSME lending campaign conducted
from 1st September, 2013 to 31st December, 2013. The total loan disbursement during the
Campaign period was Rs 677 crore covering 3,699 accounts.
MSME segment achieved all the three RBI Bench marks i.e.
i) The year on year growth to Micro and Small Enterprises was 37.37% as against the
bench mark of 20%.
ii) The increase in number of Micro accounts was 84.58% as against the bench mark of
10%.
iii) Lending to Micro enterprises under MSE segment was 60.01% as against the bench
mark of 60%.
The Bank was conferred with the National Award for excellence in lending to Micro
Enterprises based on credible performance in lending to MSMEs during the year 2012- 13.
The Bank has been receiving this award in succession for the second year and for the fifth
time since institution of the award i.e. from the year 2005-2006.
RTO Tie up arrangement
Road Transport Operators (RTO) is an important sub segment under service segment. The
relaxation in security norms, reduction in interest rate and Tie up with automobile
companies, contributed to the steady growth under this vital segment. Outstanding under
RTO segment as on 31st March, 2014 was Rs 362.39 crore comprising of 10,096 accounts.
Prime Ministers Employment Generation Programme (PMEGP)
The Bank actively supported the programme to generate employment for youth and stood
first in the State of Kerala surpassing the targets. The Bank financed 334 projects during
FY 13-14, against the target of 193 projects, registering an achievement of 173%. The
total outstanding under PMEGP scheme was Rs 64.04 crore.
CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE)
The Bank is a Member Lending Institution of CGTMSE which provides guarantee cover to
collateral free loans. Bank made it mandatory to cover all eligible accounts up to a limit
of Rs 50 lacs under CGTMSE. The Bank extended finance under this scheme to 15,699
borrowers with a total outlay of Rs 679.28 crore upto FY 2013 14.
Specialised MSME Branches:
Bank opened three specialised MSME Branches at Kollam, Kozhikode and Palakkad during
the financial year, taking the total number of specialized MSME branches to eight.
Lending to Women Entrepreneurs
Bank actively supported / encouraged lending to women entrepreneurs. Total lending to
women entrepreneurs stood at Rs 8,625.32 crore covering 7,69,851 borrowers. The exposure
constitutes 12.49 % of ANBC.
2.11 Commercial & Institutional Finance
The Banks performance under this Segment reached a level of Rs 34,901 crore as on
31st March, 2014. This segment contributed 49.31% of Banks total advance,
Commercial Network (CNW) Branch System was introduced in the Bank for giving focused
attention to select branches to achieve substantial growth in large value advances.
Commercial branches at Bangalore, Chennai, Ernakulam and New Delhi, Corporate Finance
Branch Mumbai, Mumbai Main and Karol Bagh Branch (New Delhi) were brought under the
system. The 7 CNW branches put together have a business level of Rs 27,015 crore. CNW
Branches Credit portfolio was Rs 21,225 crore, which is about 30% of the Banks
total advances.
With the objective of improving the market share in Corporate segment and enhancing the
business mix, Bank established a separate network called "Commercial Business
Network" (CBNW).
The core idea behind the formation of CBNW is to cater to the banking needs of Mid
Corporates, emerging Business Groups and large SMEs which contribute to the Banks
asset portfolio. Now, CBNW has in its fold, 13 branches across the country and it is
proposed to add more branches during 2014-15.
CBNW Branches, being credit focused, have great potential to contribute towards the
growth of business. At the end of 2013-14, the total business of CBNW was Rs 10,498 crore,
with deposits at Rs 3,134 crore and advances at Rs 7,364 crore. CBNW branches contributed
10.40% of the Banks total advances.
Project Finance Unit (PFU) was formed in the Bank in order to develop project appraisal
skills in-house and also to prevent good business proposals from going past us for want of
Techno-economic viability (TEV) study. PFU facilitates Technical and Financial appraisal
of Large, Medium and Small sized projects, which have not been vetted by agencies of
national/ international repute. During the year, PFU received 30 proposals from various
branches. 5 proposals with an aggregate limit of Rs 172.00 crore were sanctioned.
2.12 Personal Deposits
Deposits under Personal Segment grew from Rs 52,590.92 crore as on 31.03.2013 to Rs
62,246.92 crore as on 31.03.2014 thus recording a growth of 18.36%. Domestic Deposits grew
by Rs 4,004.55 crore while NRI deposits grew by Rs 5,651.45 crore. Personal Deposits
constitute 70.17% of the aggregate Deposits of the Bank.
2.13 Personal Finance
The Bank continued to be active in extending Personal Segment finance, mainly by way of
Housing Loans, Car Loans, Education Loans and Gold Loans. 13,785 housing loans aggregating
Rs 2,029.21 crore were sanctioned during FY 13-14. Outstanding in Housing Loan stood at Rs
9,500.75 crore as on 31.03.2014.
Similarly, 10,455 Vehicle loans aggregating Rs 517.60 crore were sanctioned during FY
13-14. Outstanding in Vehicle loan stood at Rs 1,387.86 crore as on 31.03.2014
The Bank continued to support the younger generation to pursue higher studies by
extending Education Loans under IBA Model Scheme. The Bank maintained its leadership in
extending Education Loans in the State of Kerala. In FY 13-14, 6794 Education Loans
amounting to Rs 217.76 crore were sanctioned, taking the total outstanding amount to Rs
2,475.41crore as at the end of March 2014.
Social Banking
In conformity with the Government of India guidelines, Interest Subvention benefits
were passed on to the eligible borrowers under Housing loans and education loans schemes.
2.14 Treasury Operations
The Gross Investments of the Bank stood at Rs 28,035 crore as on 31st March, 2014 as
against Rs 27,273 crore as on 31st March, 2013. Average investments during 2013-14 were Rs
29,938 crore as against Rs 24,984 crore during 2012-13. The Revenue from investment
operations (interest and dividend) for the year was Rs 2,211.92 crore as against Rs
1,816.37 crore for the previous year. The average yield on investments was 7.44 % during
the year as compared to 7.38% as on 31st March, 2013.
The Bank earned a profit of Rs 190.52 crore from Domestic Treasury Operations during FY
2013-14 compared to Rs 131.18 crore during FY 2012-13. The total profit from Forex
operations during the year was Rs 80.91 crore as against Rs 25.29 crore as on 31st March,
2013. Banks total Forex turnover during the year for merchant transactions was Rs
26,973 crore compared to Rs 24,026 crore during the previous year. Interbank turnover
during the year was at Rs 6,13,203 crore as against Rs 4,83,332 crore during the previous
year. The Bank is a member in MCX-SX (Multi Commodity Exchange) for trading in Currency
Futures.
2.15 International Banking
The total profit from Forex operations during the year was Rs 80.91 crore as against Rs
25.29 crore as on 31st March, 2013. The export finance extended by the Bank reached a
level of Rs 2,397.69 crore, recording a growth of 16.15 % YoY.
The Bank has entered into an agreement with Export Credit Guarantee Corporation of
India (ECGC) to cover its export credit portfolio. Accordingly, eligible accounts were
covered under Whole Turnover Packing Credit Guarantee (WTPCG) and Whole Turnover Post
Shipment Guarantee (WTPSG).
With a view to speeding up, issuing of Bank Realisation Certificate (issued to
exporters) for claiming export incentives and as part of message exchange initiative of
Directorate General of Foreign Trade (DGFT), the Bank has commenced digital transmission
of Bank Realisation Certificate (e-BRCs) through DGFT website.
2.16 Cross Selling
The Bank has been constantly endeavoring to meet the financial requirements of its
customers by making available Life, Non-life insurance products as well as other
non-banking products like Mutual Funds and Credit Card. These products are dispensed
through SBI Life Insurance Company, SBI General Insurance Company, SBI Mutual Fund and SBI
Cards companies.
The Bank earned an amount of Rs 11.15 crore from cross selling business in FY 13
14 as against Rs 9.87 crore during FY 12 13, thereby recording a YoY growth of 13%
Under Bancassurance, as part of financial inclusion, around 2,500 lives of rural poor
was covered under micro insurance schemes of SBI Life.
2.17 Asset Quality
The Bank continued to give, in a very dynamic manner, special focus to improve the
quality of Assets and to ensure building up of well performing loan portfolio. The Gross
NPA level of the Bank as on 31st March, 2014 stood at Rs 3,077 crore. The percentage of
Gross NPA to Gross Advance stood at 4.35% compared to 2.56% as on 31st March, 2013. The
Net NPA level of the Bank as on 31st March, 2014 stood at Rs 1,929 crore. The percentage
of Net NPA was 2.78% in FY 2013 14, compared to 1.46% as at the end of the previous
year.
A well built monitoring mechanism for recovery has been placed by constituting a Board
level Committee, besides a High Power Task Force with Top Executives as members, to review
the Non Performing Assets and build momentum for recovery. As a strategic initiative, a
new cell has been formed to exclusively monitor recovery performance under loss assets.
The Asset Tracking System has been centralized and put in place effectively, for follow
up of irregular accounts by tele-calling. During the year 1,40,005 accounts were tracked
and 54,200 accounts were regularized with a recovery of Rs 63.82 crore.
The Bank is continuously engaged in providing the right kind of rehabilitation package
to sick units to ensure revival of potentially viable sick industrial units.
Rehabilitation / Restructuring packages are under implementation in respect of 22 units
with a total exposure of Rs 1,569 crore, of which 20 units are under CDR scheme with an
exposure of Rs 1,512 crore and 2 units under BIFR scheme with exposure of Rs 57 crore.
2.18 Government Business
The Bank maintains its status as the Principal Banker to Government of Kerala. The Bank
has been authorized by Reserve Bank of India to handle State Government Business at 132
branches in the State of Kerala and 1 branch in Tamil Nadu. 415 Post Offices are linked
with the branches, with a total turnover of Rs 5,139 crore. Bank is also undertaking
Railway transactions in its 33 branches.
194 branches of the Bank are authorized by CBDT for collection of Direct Taxes by
physical mode (134 branches in Kerala and 60 branches outside Kerala) and 148 branches are
authorized by CBEC in Kerala for Indirect Taxes in physical mode. All branches are
authorized for e-payment of Direct and Indirect Taxes.
State Bank of Travancore is a Banking partner of the Government of Kerala in the
e-tender / e-procurement project. E-payment facility launched by the Government of Kerala,
through the Bank for the payment of Commercial Taxes is well received by the business
community and the Bank recorded a Turnover of Rs 11,847 crore for FY 13 14.
E-payment of Kerala State Excise License Fee, Rent, Vehicle Tax, Duty, collection of petty
case penalties and import fee are enabled through SBT Online.
Other e-payment initiatives include collection of Karnataka State Government Taxes,
Commercial Tax and Sales Tax of Tamil Nadu, Professional Tax and Sales Tax payment of
Maharashtra State Government. Bank also started collection of property tax online in
selected Corporations, Municipalities and Panchayaths in the state of Kerala.
The Centralised Pension Processing Cell (CPPC) has become fully operational with
1,45,018 pensioners and generated an income of Rs 11.19 crore during 2013-14.
The Bank is having 114 currency chest branches in Kerala, 1 in Kar-nataka and 8 in
Tamil Nadu. In FY 13 14, the Bank earned Commission to the tune of Rs 58.15 crore
by conducting Government business.
2.19 Electronic Payment Systems
Electronic Payments of the Bank are done by the Payment and Settlement Group which
functions from Belapur, Navi Mumbai. All the branches of the Bank are enabled for
RTGS/GRPT/NEFT remittances. The total number of outward electronic remittances for the
year ended 31.03.2014 was 63,74,055 registering an increase of 32%, over the previous
year. While the number of transactions under RTGS recorded a growth of 14%, GRPT outward
transactions and NEFT transactions increased by 50% in the current year. RTGS application
was moved over to an upgraded versions complying with ISO 20022 messaging protocol with
effect from October 2013. In order to improve customer service, one more settlement batch
was started for NEFT transactions at 8.00 AM during the year.
3. Marketing Initiatives and Development of New Products
The Bank continues to play its role in facilitating customer acquisition, retention and
broadening of customer base by conducting segment centric marketing drives.
3.1 The salary payments of most of the State Government Departments are now
disbursed through the Bank. Corporate Salary Package, with attractive features, was rolled
out to cater to the needs of the employees.
3.2 The Bank is the preferred Bank for almost all State Government Departments.
3.3 The Bank continues to be the main Banker to all the Universities in the State
of Kerala and has branches in their campus.
3.4 The major achievement during FY 13 14 was the arrangement for payment of
salary and pension for 80,000 KSRTC employees.
3.5 In order to provide one-stop service to customers, the Bank introduced a 3-in-1
account for securities transactions. In this regard, Tie-up arrangement with SBICAP
Securities Ltd. (SSL) was put in place to enable the customers for opening of Demat and
Trading accounts.
3.6 The State Lottery collection account to pool the funds of each District Lottery
Officers (DLOs) was rolled out.
3.7 A concept of "Mega Locker" was floated. The same was rolled out at
Kuravankonam branch as a pilot project.
3.8 Bank has tie-up arrangement with Maruthi Suzuki which facilitated sourcing of
car loans.
4. Customer Service
Customer service is accorded top priority in the Bank and every endeavour is made to
improve the quality of service to the customers and redress their grievances
expeditiously.
A well defined and full- fledged Customer Grievances Redressal Mechanism is put in
place in the Bank. An official of the rank of Deputy General Manager is placed as head of
the Customer Service Department to give greater focus on redressal of complaints.
Bank has provided a facility (SMS SBT CARE) to the customers whereby they can send a
message from anywhere by SMS to 56363 or give a missed call to 9847198471 from their
mobile. The customer is contacted by the officials of the Bank and the complaints are
taken up for redressal on priority.
Bank has also established a call centre with toll free number: 1800 425 5566 which
enables the customers and general public to seek clarification on Banks products and
services.
5. NRI Services
The NRI deposits recorded a growth of Rs 5,651 crore during the year and achieved a
level of Rs 24,963 crore. Bank continues to maintain the First position among Banks in the
Kerala State in NRI deposits. Bank enjoys a market share of 41.50% among the Public Sector
Banks in the State.
5.1 The NRI deposits constitute 28% of Banks total deposits. In order to
provide personalized service to the NRI Customers, Bank has opened NRI specialized
Branches at Mumbai, Kottayam and Kollam during the current year, taking the total of
specialized NRI branches to eleven. 5.2 Two more Relationship Managers have been
deputed to the Gulf countries during the year to strengthen Banks international
presence, taking the total number of Relationship Managers posted abroad to nine. Tie up
arrangements were established with five more Exchange Houses in the Gulf countries during
the year, taking the total number of such arrangements to 43. These Exchange Houses
remitted Rs 38,000 crore to the State which was 50% of total remittance received by the
State of Kerala in FY 13 14. 5.3 A new Current Account product, "
SUKOON" was introduced exclusively for NRIs who wish to keep their savings, free of
the interest, on account of their religious beliefs. The Rupee premium Deposit Account,
was made available for longer periods exceeding one year. A new foreign currency
loan product against the FCNR (B) deposits was introduced during the year. The facility to
open NRE accounts online was also introduced during the year.
6. Lead Bank Scheme
The Bank is undertaking the Lead Bank activities in three districts of Kerala -.
Alappuzha, Kottayam and Pathanamthitta.
TheLeadBanksinitiatedseveralstepsforsuccessfulimplementation of DBT/DBTL in these Lead
Districts. Financial Literacy programmes for Students, farmers and women entrepreneurs
were also arranged in the lead districts. A Special Campaign was conducted on Priority
Sector Advances particularly for extending Kisan Credit Cards. For widening the coverage
of Banking services, a campaign for opening of Savings Bank accounts was conducted in the
Lead Districts.
6.1 Rural Self-Employment Training Institutes (RSETIs)
Bank has RSETIs in Wayanad, Pathanamthitta, Alappuzha, and Kottayam for providing skill
up-gradation trainings to the rural youth with focus on Below the Poverty Line (BPL)
category. The courses for which training is imparted include - beautician course,
ornaments manufacturing, mobile phone servicing & repairing, aluminum fabrication,
tailoring, textile ornamentation, kitchen gardening, mushroom cultivation, Dairy farming,
Vermi Compost and off-site programmes like rubber tapping, driving. RSETIs also imparted
EDP training to bene_ciaries selected under Kerala State Entrepreneurs Development Mission
(KSSEDM).
7. Financial Inclusion
7.1 Financial Inclusion (FI) is delivery of banking services at an a_ordable cost
to the vast sections of the disadvantaged and low-income groups. The Bank opened 25.56 Lac
No-frills accounts (Janapriya accounts). 90% of these accounts were opened in the State of
Kerala. Joint Liability Group (JLG) schemes, Biometric Smart Card Project, General Credit
Cards to the Janapriya Account Holders are other initiatives in this direction.
7.2 In conformity with the directions of Reserve Bank of India, the Bank has
formulated a Financial Inclusion Plan, which has been rolled out during 2013-14 and all FI
villages allotted to the Bank has been covered in the State of Kerala.
7.3 The following steps / activities were undertaken by the Bank as a part of
fulfilling the Banks commitment to Financial Inclusion.
35 villages having a population over 2000 have been allotted to the Bank for
providing basic Banking services through Business Facilitator/ Business Correspondents (BF
/ BC) route or by opening branches. Bank provided Basic Banking services in these villages
through the BF/BC route except in Perumanna, Mayyil, Vadavannur, Eramallor,
Kumarampathoor, Chethakkal, and Thelliyoor villages in Kerala, where new branches were
opened.
All the BCs/CSPs and Link Branch Managers have been imparted training.
The FI Project of the bank has been christened "SBT-SAHAYA HASTHAM".
As on 31st March, 2014, Bank enrolled approximately 27,500 customers under
"SAHAYA HASTHAM" in the 35 FI Villages. The Bank has added 20,209 No-Frills
accounts through the new branches opened at Perumanna, Mayyil, Vadavannur, Eramallor,
Kumarampathur and Chethakal villages.
Smart Cards were issued to 25,160 customers.
7.4 The Bank has been allotted 365 Sub Service Area (SSAs) by SLBC Kerala for
opening of Banking outlets. The Bank opened Banking outlets in all these centres through
Akshaya Mission of Kerala, a partner of CSC e- Governance services India Ltd. The Bank
started Kiosk Banking through Akshaya Centres.
7.5 As a member of the Aadhaar Payments Bridge System (APBS) and National Automated
Clearing House (NACH) of the National Payments Corporation of India (NPCI), Bank processed
35,13,357 records through NACH amounting Rs 217,39,86,410 and 1,04,336 records amounting
Rs 22,67,04,863 under Central Plan Scheme Monitoring System (CPSMS) during FY 2013-14.
Both these channels are meant for payment of Government Direct Benefits Transfer (DBT) to
the bene_ciaries.
7.6 The Bank has seeded / linked approximately 19.74 lac customers accounts
with Aadhaar numbers as on 31st March, 2014.
7.7 The Bank has got Lead Bank responsibility in three Districts in Kerala -
Alappuzha, Kottayam and Pathanamthitta.
7.8 CRISIL conducted a study called "CRISIL Inclusix" which is an index
to measure the progress in Financial Inclusion.
As per "CRISIL Inclusix", Pathanamthitta district was ranked Number one in
the country. The other two Districts i.e., Kottayam and Alappuzha were ranked fifth and
_fteenth in the CRISIL Study.
8. Support to Weaker Sections
8.1 Assistance to Schedule Caste / Schedule Tribes ( SC/ST )
The Bank continues to give due importance in extending financial assistance to meet the
credit requirements of the SC/ST customers. A credit Cell is functioning at Head Office
under the control of Deputy General Manager (MSME) for monitoring flow of credit to SC/ST.
Advances to SC and ST borrowers under Priority sector aggregated to Rs 4,038 crore
constituting 13.84% of priority sector lending .
8.2 Assistance to Minority Communities (MC)
The Bank continues to give due importance in extending financial assistance to meet the
credit requirements of the Minority Community borrowers. Advances to Minority Community
borrowers under Priority sector stood at Rs 9,692 crore as on 31.03.14, as against Rs
8,536 crore as on 31.03.2013, constituting 33.21% of the Banks priority sector
lending.
8.3 Lending to women entrepreneurs
The Bank actively encouraged lending to women entrepreneurs. Total lending to women
entrepreneurs stood at Rs 8,625.32 crore covering 7,69,851 borrowers. The exposure
constitutes 12.49% of ANBC.
9. Information Technology-Technology Up-gradation and IT initiatives
The Core Banking System has provided the Bank with a state-of-the-art software that has
greatly enhanced the efficiency of customer services, accelerated data processing
capabilities, strengthened MIS, enabled efficient Asset Liability Management, reduced
transaction cost and offered alternate channels to customers for transactions.
9.1 Alternate Delivery Channels
The CBS has facilitated effective implementation of Alternate Channels viz Automated
Teller Machines (ATMs), Internet Banking, Mobile Banking, Green Channel Counters(GCC),
Point of Sales terminals (POS), Prepaid cards and Self Service Kiosks(SSK). The Internet
Banking facility is recognised to be the best among its class. Mobile Banking Service
which was rolled out in July 2009, is getting steady acceptance from customers.
9.2 ATMs
The Bank has a network of 1352 ATMs.
The Banks ATM cum Debit cards are accepted in all outlets having Master
Card / Visa logo. Several facilities such as Visa Money Transfer (VMT), Money Send, SBI
Credit Card payment, SBI Life Premium payment, Mobile recharge, Donations, Fee payment,
JMET / GATE Application Fee payment, Mobile Banking registration and order for new cheque
books have been enabled in the ATMs.
The Bank has card base of 84.07 lacs as on 31.03.2014, which translates into an
increase of 21.11% over the card base as at the end of the previous year.
9.3 Internet Banking
The Banks highly secure Internet Banking, supported by encryption, offers
utmost security to Internet Banking customers against phishing / hacking threats and
provides Intra-Bank / Inter-Bank funds transfer facility up to a limit of Rs 500 crore per
transaction.
1,55,527 new registrations were activated during the FY 13 14, showing a
growth of 27.71% over previous year. Total number of Internet Banking registrations as on
31.03.2014 was 7,16,699, comprising of 6,34,699 Retail Customers and 82,000 Corporate
Clients.
9.4 Mobile Banking
Mobile Banking provides customers with another safe, secure, fast and convenient
channel for banking transactions. The services provided includes enquiry services, funds
transfer, Interbank Mobile Payment system (IMPS), Demat account services, bill payment,
mobile top-up, DTH recharge, M-commerce. The daily limit for MBS transaction is Rs
50,000/- for aggregate of funds transfer & transactions involving purchase of goods
& services, within an overall calendar month limit of Rs 2,50,000/-.
A more advanced fund transfer channel, P2A, was added to the existing IMPS
payment services enhancing the ease and convenience of the Mobile Banking facility. The
new channel provides 24x7 instant-payment facility to any IMPS Member Bank.
The Bank has a net Mobile Banking base of above 1,60,000 customers. The net
income earned during 2013-14 through mobile banking was Rs 10.25 lacs with a YoY growth of
34.06%.
9.5 Other achievements
The Bank is the pioneer in various e-banking initiatives. The major initiatives in FY
13-14 are given below:
The Government of Kerala won the CSI-Nihilent E-Governance Award for 2012-13.
The sole banking service provider in this project was State Bank of Travancore.
Arrangement for payment of salary and pension to 80,000 KSRTC employees.
Cheque Truncation System (CTS) implemented in all MICR centres across the
country.
10. Business Process Re-engineering
(BPR) Initiatives
With the objective of enhancing customer service and improving Banks performance,
the Bank embarked on implementation of various BPR initiatives by leveraging on its core
competencies, state of the art technology and redesigned operating architecture.
Retail Assets & Small and Medium Enterprises City Credit Centres (RASMECCCs)
were established at eight centres linking 189 branches. During the current financial year,
the Bank opened another six centres linking 74 branches. Altogether 281 branches are now
covered by these centralised credit processing centres. These centres ensure that the
loans are delivered within the prescribed turnaround time.
Multi Product Sales Team (MPST) has been formed at all zonal offices who will
act as an intermediary between customers and the loan processing centres. During the
current year, the Bank has added five newly recruited staff at each centre thereby making
the team younger and more vibrant .
Currency Administration Cells (CAC) were earlier established at 13 centres
linking 199 branches to act as a link between branches and currency chest for better cash
management. During the current year, another six centres were added, linking 49 more
branches. The overall cash reduction in all branches is more than 50% of their retention
limit. In Thiruvananthapuram, the reduction is as high as 78%.
Stressed Assets Resolution Centres (SARCs) were rolled out at eight centres for
more focused attention on recovery of stressed assets. Follow up of pending cases and
initiation of SARFAESI proceedings have been given a thrust due to the availability of
specialized manpower at these centres .
Pension processing has been centralized at our Centralised Pension Processing
Centre set up at Thiruvananthapuram. 783 branches are linked to these centres and at
present 1,44,918 pensioners are receiving their pensions through this centre. The Centre
ensures accuracy in pension calculations and timely disbursement of pension.
In line with the RBI guidelines, the Bank moved over to CTS clearing scenario.
Service Branches are functioning at New Delhi, Mumbai & Chennai. Additional Service
branches are also established at Bengaluru, Thiruvananthapuram, Kozhi-kode, Thrissur,
Kottayam and Kollam for providing support.
Trade Finance Central Processing Centres (TFCPC), aimed at ensuring efficient
and uniform handling of trade finance transactions were rolled out at Ernakulam and
Chennai linking 46 branches.
Liability Central Processing Centre (LCPC) was established at Thiruvananthapuram
to provide back office support to branches in opening and servicing of liability accounts
such as Savings Bank and Current Deposit Accounts. The Centre provides pre-generated
Welcome Kits to the linked branches consisting of ATM cards and cheque books. During the
financial year 2013-14, a record 22.50 lac accounts were opened compared to 13.50 lac
accounts during the previous year. LCPC also issues CTS compliant cheque Books to
customers.
Contact centre(Toll free No:18004255566) was set up at Bengaluru for providing
information on the Banks products and services, ATM card issue status and blocking
of lost/damaged cards. Lead Management System of the Bank provides a tracking mechanism
for business leads generally received through Contact Centres. During the current year,
the Bank has extended to the customers, the privilege of calling in five different
languages (i.e. English, Hindi, Tamil, Kannada & Malayalam). Customers can now
generate T-pin also whereby they can access their accounts directly.
During the current year, Bank rolled out the "Doorstep Banking"
whereby dedicated cash vans go to customers doorsteps and pick up cash. This value added
service is presently extended to customers in Thiruvananthapuram and Ernakulam.
During the current year, the Bank introduced the In- Branch Cash Handling system
(IBCH) in most of the branches. This enables the front office to provide better service.
11. Internal Control Systems &
Supervision
11.1 Integrated Risk Management
Banks risk management philosophy is based on a clear and timely identification of
various types of risks, accurate risk assessment and measurement procedures and continuous
monitoring. The Integrated Risk Management facilitates the Bank to have a holistic view of
the risk management. Modular structure under Integrated Risk Management has various
divisions focused on management of a specific risk Asset Liability, Market Risk,
Credit Risk, Operational Risk and Information Systems Security.
The risk management architecture of the Bank consists of the Board of Directors at the
top having overall responsibility to implement Risk Management Systems in the Bank. To
this effect, Risk Management Committee of the Board supervises the overall risk management
functions of the Bank. In line with the modular structure of Integrated Risk Management,
there are various risk management committees to have focused attention on various risks,
viz. Asset Liability Management Committee (ALCO), Market Risk Management Committee (MRMC),
Credit Risk Management Committee (CRMC), and Operational Risk Management Committee (ORMC).
The General Manager (Risk Management) is designated as the Chief Risk Officer (CRO). The
Integrated Risk Management Department headed by Deputy General Manager is responsible for
the overall daily management of risks at micro level. For management of various risks,
Bank has in place various policies and procedures.
11.2 Risk Management Functions
Asset Liability Management system has been implemented in the Bank, since April 1,
1999, as per the Reserve Bank of India guidelines on ALM and Liquidity Risk Management. As
per the Banks ALM Policy, the Asset Liability Management Committee (ALCO) is
authorised to evolve appropriate systems and procedures for ongoing identification and
analysis of liquidity and market risks and to prescribe parameters for efficient
management of these risks. The ALCO headed by Managing Director meets regularly to review
and monitor the same. Liquidity and interest rate risks are identified, measured and
monitored by the ALCO through the prescribed statements, viz. Statement of Structural
Liquidity, Statement of Short Term Dynamic Liquidity, Statement of Interest Rate Risk
Sensitivity (Traditional and Duration Gap methods), Stress Testing on Liquidity and
Earnings etc. ALCO discusses these statements in detail and takes corrective actions
whenever necessary. As per the Banks ALM Policy, a Contingency Funding Plan is
reviewed on a quarterly basis. Banks Benchmark Lending Rates (Base Rate and BPLR)
and Card Rates for Deposits are discussed and decided by the ALCO. The ALCO also discusses
the economic developments and monitors the changes in the market on an ongoing basis.
Market Risk is largely managed through adherence to various policies, in the conduct of
the investment and trading activities along with adherence to various risk limits like
position limits, stop loss limits, Value at Risk (VaR), Management Action Trigger (MAT)
and Cut Loss Triggers (CLT) through constant monitoring of the risk positions. The
policies are reviewed periodically keeping in view regulatory changes, business
requirements and market developments.
For Credit Risk management, the Bank has a structured and standardised credit approval
process which includes comprehensive credit rating of proposals. For retail loans, Bank
uses a risk scoring model. Bank has in place various exposure limits for single
borrower, group of borrowers, specific sectors, industries etc. as per regulatory
requirement and as per its internal policies. Bank takes up regular reviews of its various
loan portfolios to assess the risk profile and initiates proactive measures.
The Bank is estimating capital charges for Operational Risk under Basic Indicator
Approach. Other risk prone operational areas of the Banks business are monitored and
proactive actions for improvement are initiated in consultation with other departments
like Inspection, Systems & Procedure, Frauds Prevention, and Monitoring& Recovery
etc.
11.3 Information Systems Security
With technology becoming all pervasive in banking operations, the Information Systems
Security Cell plays a pivotal role in spreading awareness on various security measures
among staff through various channels including e-mails, circulars, pamphlets as also
Banks training system.
The Bank is closely monitoring the roadmap for migration to advanced approaches under
Basel II and Basel III norms. In this direction, Integrated Risk Management Department has
been conducting various programmes to disseminate the risk management knowledge to the
operating units. This has resulted in better awareness among the operating staff about the
various risks, importance of accurate data for computation of capital charge, need for
capital conservation, and in general better risk management orientation
11.4 Inspection and Supervision
Internal Audit / Inspection is an independent appraisal of operations of various
Systems and Controls within an organization to determine whether acceptable policies and
procedures designed to add value and improve an organizations objectives, are
followed and resources are used efficiently and economically. Inspection and Audit
Department at Head Office monitors various risk parameters by conducting regular Internal
Inspection, IS Audit, Compliance Audit of Branches and System Audit of various Head Office
Departments and Modules.
Apart from the above, Bank has put in place an effective institutional mechanism for
Risk Based Supervision through RBS Cell in the Inspection Department. As envisaged by the
Regulator, the Bank introduced Risk Focused Internal Audit (RFIA) under RBS with effect
from 1st April, 2003. Based on the guidelines on Internal Audit issued by Government of
India, Banks Inspection & Audit Policy has been suitably modified. The Bank has
also incorporated the RBI guidelines on Information System Audit in the IS Audit Policy.
Subsequent to migration to Core Banking, and constant upgradation in technology,
corresponding changes have been brought in, especially in the area of Audit Rating, Audit
Report Formats, grouping of branches, sampling norms and periodicity of inspection.
In order to instill knowledge and to improve the quality of various reports, the Bank
is imparting training for the existing and newly joined inspecting officials in the area
of RFIA, IS Audits and Concurrent Audit. In order to improve the observance of systems and
procedures, the Bank has introduced Dynamic Rating System. Compliance audit has been
reintroduced from 01/01/2014.
11.5 Credit Audit
The audit of loan appraisal and administration for high value credit accounts, with the
aim of improving the asset quality of the Bank, is undertaken by the Credit Audit
Department. Accounts with total exposure of Rs 2 crore and above are covered under Credit
Audit. Credit Audit was conducted for 1,179 accounts during the year, covering the
pre-sanction, post sanction, compliance and follow up aspects. Credit Audit was also
conducted for four accounts with exposure below Rs 2 crore during the year.
The Bank ensures that GOI and RBI directives/instructions received are being complied
with promptly. Monthly reports of performance are regularly submitted to the Audit
Committee of the Executives for information and the review reports are being submitted to
the Audit Committee of the Board at its next meeting.
11.6 Inter-Office Reconciliation
Bank completed reconciliation of Inter Branch accounts up to 31st December, 2013. 100%
reconciliation of debit entries were achieved from 01/04/2009 to 31/12/2013, which is in
conformity with RBI stipulations.
Bank also introduced IBTS (Inter Branch Transfer System) for Inter Branch
Reconciliation (in lieu of Branch Clearing General Account and Inter Branch Items in
Transit) with effect from 10.06.2013.
11.7 Compliance
The Bank ensures timely compliance in submission of various statutory and regulatory
returns and also prompt replies to references received from the Government of India /
Reserve Bank of India and other institutions viz., State Bank of India, Indian Banks
Association. The Chief Compliance Officer monitors the Compliance function effectively on
an on-going basis to ensure that regulatory guidelines issued by RBI, GOI & other
regulatory authorities are duly captured in the Banks policies and laid down
instructions and that they are complied with at all levels. The Chief Compliance Officer
further appraises the Audit Committee of the Board and the Group Compliance Officer of
material breaches identified or reported along with the plan for mitigation of breaches.
The Compliance Department also provides secretarial services to the CPIO who deals with
requests under the Right to information Act, 2005. The Deputy General Manager (Compliance)
is also designated as the Appellate Authority under the above Act
11.8 KYC Norms & AML/ CFT Measures
The Bank has put in place a Board approved revised policy and procedural guidelines on
Know Your Customer (KYC)/ Anti Money Laundering (AML) /Combating of Financing of Terrorism
(CFT) measures in line with the master policy and subsequent guidelines issued by Reserve
Bank of India. A dedicated KYC-AML Cell is functioning in the Head Office to oversee the
compliance of KYC/AML/CFT measures. Controllers during their visits to the branches as
also the Internal Auditors and Concurrent Auditors, verify compliance of KYC norms as per
instructions issued from time to time.
The Deputy General Manager (Compliance) is the designated Principal Officer for the
purpose of KYC/AML/CFT in the Bank However, primary responsibility of ensuring
implementation of KYC/AML/CFT Policy and related guidelines will be vested with the
respective Branches/ BPR units/ Controllers/ Zones/ Networks.
Monitoring of transactions is done with a view to submit the required reports to
Financial Intelligence Unit-India, (FIU-IND), mandated by Prevention of Money Laundering
Act 2002. With a view to implementing and supporting monitoring of transactions, the Bank
has acquired appropriate software which is processing all transactions handled by all
branches of the Bank, on a day to day basis. Monthly Cash Transaction Reports (CTRs) and
Non Profit Organistaion (NPO) Transaction Reports (NTRs) are being generated by the system
for submission to FIU-IND. Suspicious Transaction alerts are generated daily, for analysis
by the KYC-AML Cell. After due analysis, suspicious transactions are reported to FIU-IND
through Suspicious Transaction Report (STRs), where ever felt necessary. Counterfeit
Currency Reports (CCRs) are also being submitted to FIU-IND as and when detected.
Training on KYC/AML is being imparted on an ongoing basis in the Bank. Staff awareness
programmes are conducted regularly through seminars at Zonal/ Regional Office levels,
Learning Centers and during branch visits.
11.9 International Financial Reporting Standards (IFRS)
The IFRS Cell at Head Office, is collecting, compiling and submitting IFRS compliant
data to SBI, Mumbai. All relevant data up to the FY 2012-2013 have been submitted.
Associated Banks Integrated Treasury and M/s. Credence Analytics (I) Pvt Ltd have
implemented an IFRS module for capturing Compliant data through Credence Software.
The Bank, being a member of the State Bank Group will be taking a common group approach
on, convergence to IFRS.
12. Security Arrangements
During the year, no loss due to security breach in the Bank was reported. Based on the
Risk assessment, Security Guards have been posted at our vulnerable Branches. All Currency
Chest branches are provided with full- time security guards. All Bank branches are
provided with essential safeguards like fire alarm systems, burglar alarm system.
Controllers, Chief Security Officer, Security Officers attached to Zones and Fire Officers
are constantly visiting branches and monitoring security measures provided at branches.
Immediate remedial measures are taken wherever necessary.
13. Vigilance Machinery and Frauds Monitoring
Preventive vigilance measures
Due to initiation of Preventive Vigilance mechanism through various measures, such as
Surprise Inspections, Branch visits, circulars, vigilance awareness meetings, Bank could
inculcate a sense of positive approach towards compliances from vigilance angle among all
the functionaries including adherence to systems and procedures.
Leveraging technology in vigilance administration has been given priority. The
technology initiatives introduced during the year includes E-VVR checking, E-tendering
software solutions and Biometric access to CBS.
A programme on positive vigilance in Contracts and Procurements was conducted in May
2013 for the benefit of officers handling various contracts and procurements in the Bank.
At the request of CBI a training programme for investigating officials of the CBI was
conducted by the Department at Thiruvananthapuram from 2/09/2013 to 6/09/2013.
"A Whistle Blower Policy" was introduced by the Bank as a part of anti
corruption initiative and also to detect and prevent unfair practices wherever reported.
The complaints received under the policy were studied and investigations were conducted.
The details of Whistle Blower are kept confidential.
As part of monitoring preventive vigilance activities, Preventive Vigilance committee
has been set up in larger branches where staff strength at present is 10 or more. This
helps the Branch Manager to discuss collectively the vigilance matters concerning the
branch and work in a coordinated manner. All other branches having Staff Strength of below
10 have also been advised to discuss vigilance matters in the monthly staff meeting.
As per the direction of the Central Vigilance commission, the CVO is scrutinising the
complaints received by the Bank and is suggesting necessary actions where vigilance angle
is discernible. As regards complaints directly received by the CVO, vigilance
investigation is conducted, if vigilance angle is discernible in such complaints. In cases
of anonymous complaint / pseudonymous complaint which have veri_able facts, vigilance
investigation is conducted selectively in terms of CVC guidelines.
Vigilance Awareness Week was observed from 28/10/2013 - 01/11/2013 with pledge
administered at Head office / other offices/ branches. This years topic for
Vigilance Awareness week was "Promoting Good Governance Positive Contribution
of Vigilance". In connection with the vigilance awareness week variety of programmes
such as Quiz competition, Essay competition, Elocution competition and talk by eminent
speakers on the subject were organised at Head Office and Zonal Offices to spread
awareness of vigilance and anti corruption. In addition to spread the awareness among
employees the students from schools and colleges were also involved in the above
programmes.
The Vigilance Department apprise the Board of Directors every quarter on the status of
disposal of vigilance cases and also the preventive vigilance measures being followed in
the Bank.
14. Right to Information Act
The Right to Information Act, 2005 has been implemented in the Bank since 2005-06. The
Deputy General Manager (Compliance) at Head Office has been nominated as the Nodal Officer
under the Act and a system has been put in place to receive the applications / queries
from the public seeking information about the Bank and related matters and to furnish
prompt replies within the time frame stipulated under the Act. Central Public Information
Officers, Assistant Central Public Information Officers and Appellate Authorities have
also been nominated at Head Office and Module offices in terms of the Act.
During 2013-14, 1,199 applications were received and 1,184 applications were disposed.
149 appeals were received and 148 appeals were disposed off promptly and within the time
frame under the Act.
15. Human Resources Development &
Industrial Relations
15.1 As on 31-03-2014, the Bank had on its rolls 14,491 members of staff,
comprising 5,094 officers, 7,005 clerical and cash department staff and 2,392 subordinate
staff inclusive of 643 Maintenance Staff. The number of women employees and ex-service
personnel constituted 5,864 and 1,665 respectively of the total work force. Out of the
women employees, 1,557 are officers, 3,521 non-subordinate staff and 786 subordinate
staff. The Bank has also on its rolls 231 persons with disability.
15.2 During the year, 2,761 staff were recruited (116 in the officers cadre,
2,210 in Non subordinate and 435 in the subordinate cadre).
|
OF WHICH |
Staff Strength particulars as on 31-03-2014 |
Total |
SC |
ST EX-SER |
WOMEN |
PWD |
Officers |
5094 |
648 |
145 |
145 |
1557 |
67 |
Clerical |
7005 |
910 |
196 |
773 |
3521 |
154 |
Subordinate (Exc. MS) |
1749 |
396 |
71 |
747 |
304 |
8 |
Maintenance Staff |
643 |
171 |
13 |
- |
482 |
2 |
Total Staff |
14491 |
2125 |
425 |
1665 |
5864 |
231 |
No of Staff Recruited 2013-2014
Cadre |
Total |
Officers |
116 |
Clerical |
2210 |
Sub-staff (Including Maintenance Staff) |
435 |
Total |
2761 |
15.3 During the year 49 employees were promoted from Maintenance Staff to
Subordinate Staff, 44 employees were promoted from subordinate to non-subordinate cadre,
164 employees were promoted from clerical cadre to the Officers cadre and 609 promotions
took place within Officers cadre.
15.4 Staff Productivity
Business per employee stood at Rs 11.56 crore as on 31st March, 2014 as against Rs
12.59 crore as on 31st March, 2013.
Net Profit per employee was Rs 2.20 lac as on 31st March, 2014 compared to Rs 5.06 lac
a year ago.
15.5 Training
Training programmes are conducted at our Learning Centres at Thiruvananthapuram and
Ernakulam with the objective of updating the knowledge, improving skills and reorienting
the attitude of our officers and employees on an ongoing basis with particular reference
to areas of corporate goals/concern areas.
During the year under review 262 training programmes were conducted imparting training
to 4,239 Officers, 2,501 non-subordinate staff and 93 subordinate staff.
In addition to in-house training programmes 1,301 officers were deputed to the Apex
Training Institutes of State Bank of India, RBI and other centres for training. The
centres include State Bank Staff College, Hyderabad, State Bank Academy, Gurgaon, State
Bank Institute of Rural Development, Hyderabad, State Bank Institute of Information and
Communication Management, Hyderabad, College of Agricultural Banking, Pune, RBI Chennai,
National Institute of Bank Management, Pune, Institute for Development and Research in
Banking Technology (IDRBT), Hyderabad, Centre for Advanced Financial Research and Learning
(CAFRAL), BIRD, Lucknow, IIBF, Mumbai, IIBM, Guwahati, IMI, New Delhi, CBI Academy,
Ghaziabad, FEDAI, NI-NSME, Hyderabad.
15.6 Pre Recruitment and Pre-Promotion Training to SC/ST/OBC
The Bank has conducted pre-recruitment training programme for candidates belonging to
SC/ST/ OBC category appearing for written examination for selection of Peons. Classes were
conducted at five centres in Kerala. 3,187 candidates belonging to the above categories
attended the training. Other eligible candidates were supplied with hand outs.
Pre Promotion training and Mock Interviews were conducted for employees belonging to
SC/ST/OBC category, appearing for promotion from Sub-ordinate to Non subordinate cadre and
Non-subordinate cadre to Officer cadre. Mock interviews were also held for SC/ST
candidates selected to attend the interview for conversion of maintenance staff to full
time Subordinate Staff.
15.7 Orientation Programme for Newly Recruited Employees
About 2,200 new recruits joined the Bank in clerical cadre during the year. The Bank
has given orientation training to all of them.
Orientation training was also imparted to the newly joined Probationary Officers and to
the officers promoted from the clerical cadre. Intermediate Programme was conducted for
387 Probationary officers recruited last year. Officers promoted under Group B last year
were also given intermediate training.
15.8 Foreign Training
During the year, two officers were deputed to attend the 8th FEDAI Annual Conference at
Singapore. One officer was deputed to attend an International Banking seminar, at Deutsche
Bank, New York.
15.9 E-Learning Campaign
In order to popularize and promote the usage of e-Learning among the Banks staff
a campaign was conducted. On completion of the campaign cash incentives and certificates
were distributed to successful candidates. Toppers were invited to P-review meeting and
presented with citations.
15.10 Reward & Recognition
The Bank has formulated a scheme to recognize and motivate high achievers among our
branches by awarding the honour of MDs Club, CGMs Club and GMs Club
membership to top performing branches.
15.11 Human Resources Management Solutions (HRMS)
The Bank has rolled out Project HRMS, with a view to automate, integrate and centralize
HR processes of the Bank. HRMS has not only become a single and central source of
information tool for the decision takers and policy makers enabling efficient HR
Management but also a tool for employee satisfaction through transparent and time bound
monetary transactions relating to emoluments and perks payment through uniform
interpretation of the Banks instructions as well as other services.
15.12 Staff SC/ST Cell
Reservation RulesImplementation in our Bank
Reservation policy has been implemented in the Bank for Scheduled Castes and Scheduled
Tribes from 1972 in direct recruitment and from 1978 in promotion.
Reservation at 15% for SCs and 7.5% for STs is provided in direct recruitment for
Officers cadre. In direct recruitment to Clerical and subordinate staff cadres,
percentages of reservation as applicable in each State are provided for SCs and STs
respectively. In promotion from Clerical cadre to Officers cadre 15% and 7.5% of the
vacancies are reserved for SCs and STs. Likewise in promotion from Subordinate to clerical
cadre 15% and 7.50% of the vacancies for SCs and STs respectively are provided where
element of direct recruitment does not exceed 75%.
The other tasks undertaken by the Cell are:
Ensuring compliance, by the Bank, with orders and instructions pertaining to the
reservation in favour of SCs/STs in the matter of recruitment/promotions another service
benefits such as relaxations/ concessions admissible to them.
Ensuring the placing of an Annual Review Report on the progress of
implementation of reservation policy for SC/ST before the Board of Directors.
Ensuring that while making reference to the Ministry of Finance (Banking
Division) regarding de-reservation of reserved vacancies, the de-reservation proposal has
been made with the full knowledge and concurrence of the Chief Liaison Officer.
Ensuring that the Bank takes appropriate steps to provide all help and
co-operation to the National Commission for SCs and National Commission for STs.
Ensuring that GOIs directions are followed in respect of DPCs/ Selection
Committees pertaining to SC/ST/MC members.
Ensuring proper implementation of the Reservation Policy by conducting annual
inspection of the rosters maintained in the organization.
Acting as Liaison Office between Bank and the Ministry of Finance, Govt. of
India and National Commission for SCs, STs, OBCs and Minority Communities for supply of
information, answering questions and queries and clearing doubts in regard to matters
covered by the reservation orders.
The staff data as on 31.03.2014
Category |
Total |
SC |
( % ) |
ST |
( % ) |
Officers |
5,094 |
648 |
12.72 |
145 |
2.85 |
Clerical |
7,005 |
910 |
12.99 |
196 |
2.80 |
Sub-staff |
1,749 |
396 |
22.64 |
71 |
4.06 |
Maintenance Staff |
643 |
171 |
26.59 |
13 |
2.02 |
Total |
14,491 |
2,125 |
14.66 |
425 |
2.93 |
Post based roster which shows a clear picture of implementation of reservation rules is
maintained in the Bank, in accordance with the Government of India guidelines. Such
rosters are being veri_ed by the Chief Liaison Officer for SCs and STs annually.
Whenever backlog of reserved vacancies for SCs and STs occur, such vacancies are filled
through special recruitment. Last such special recruitment was conducted during 2009-2010
wherein 34 SC candidates and 12 ST candidates were recruited in Officers cadre. As at the
end of March 2014, the position of backlog is as follows.
Backlog under Direct Recruitment to
|
Category |
Sl.No Cadre |
SC |
ST |
1 Officer |
22 |
129 |
2 Clerical |
- |
- |
3 Maintanance Staff |
- |
- |
Backlog under Promotion from:
|
Category |
Sl.No Cadre |
SC |
ST |
1 Clerical to Officer cadre |
52 |
41 |
2 Subordinate to Clerical Cadre |
18 |
18 |
Backlog of ST vacancies under promotion from clerical cadre to Officer Cadre is due to
non-availability of candidates in feeder cadre.
The following concessions/relaxations are made available to employees in the SC/ST
category.
Relaxation upto 5% of the required qualifying marks both in written test and
interview is allowed in direct recruitment to subordinate and clerical cadre.
Relaxation upto 5% of the required qualifying marks both in written test and
Interview is allowed in promotion from clerical cadre to Junior Management Grade Scale- I
under Group A and Group B channels.
5 years relaxation in upper age limit is allowed to candidates belonging to SCs
and STs in recruitment to subordinate, clerical and Officer Cadres.
5 years relaxation in upper age limit is allowed to candidates belonging to SCs
and STs in promotion from Clerical cadre to Officer Cadre under Group- B channel.
In recruitment, the total number of vacancies and number of vacancies available for SCs
and STs are advertised extensively in newspapers.
Pre-examinationtrainingswereconductedatThiruvananthapuram, Kollam, Alappuzha, Ernakulam
and Palakkad Centres, for SC & ST candidates who applied for recruitment as Peon from
11.11.2013 to 15.11.2013. Around 3,187 candidates attended the training and handouts have
been sent by post and courier to 14,860 candidates who could not attend the
pre-examination training. Similarly pre-promotion training to SC/ST employees were also
conducted for promotion from Subordinate cadre to clerical (SWO-A) and clerical to
Officers under Group A, B and D channels.
The Bank has designated an Officer of General Manager rank as Chief Liaison Officer for
SC/ST. The Bank also has a separate Reservation Cell (SC/ST) headed by a Manager at Head
Office and assisted by Liaison Officers at the eight Zonal Offices and two Regional
Offices (Mumbai and New Delhi) to protect the interests of SC/ST employees. The Cell at
Head Office arranges periodic meetings of the representatives of the SBT SCs& STs
Staff Welfare Association with the Top Management to listen to and redress their
grievances. The Bank has already provided a well-furnished office with telephone and
computer to the Association. Check- off facility for payment of subscription by the
members to the Association also has been provided. The Cell is also conducting meetings of
Liaison officers of all the Zones/ Regional Offices at quarterly intervals. Such meetings
are presided over by the Chief Liaison Officer to discuss issues, if any, pertaining to
respective area. The General Manager (HR) also invariably participates in the meeting. The
action points which emerge in such meetings are meticulously followed up to redress the
issues.
15.13 Activities of Minority Communities [MC] / Other Backward Communities [OBC] /
Persons with Disability [PWD] / Ex-Servicemen [EX-SER] Cell
The Bank has designated an Officer of General Manager rank as Chief Liaison Officer for
OBC Cell and PWD/Ex-Servicemen Cell. The Bank has also designated an Officer of Deputy
General Manager rank as Chief Liaison Officer for Minority Community. MC/OBC/ PWD &
Ex-Ser Cell assisted by Liaison Officers at Head Office, eight Zonal offices and two
Regional Offices are functioning to protect the interests of the employees belonging to
the respective sections.
The Cell ensures:
Compliance by the Bank with orders and instructions pertaining to the
reservation of vacancies in favour of Ex- Servicemen and Persons with Disabilities in the
matter of recruitment/ promotions and other service benefits.
Compliance by the Bank with orders and instructions pertaining to the
reservation of vacancies in favour of MC/OBC in the matter of recruitment and other
service benefits.
The Bank takes appropriate steps to provide all help and co-operation to the
backward classes Development Corporation.
15.4 Industrial Relations
The time tested mechanism of bilateral negotiations at various levels of the
organisation with the Employees Union and the Officers Association through
periodical structured meetings and redressal of the issues ensured harmonious and cordial
industrial relations in the Bank throughout the year.
Bipartite meeting was held with Officers Association at Bank level on
6.7.2013. The Bank participated in the Bipartite meeting held with State Sector Bank
Employees Association (SSBEA) level on 16th and 17th September, 2013 and another Bipartite
meeting held with Associate Banks Officers Association on 16/12/2013 at Gurgaon.
Staff Welfare Committee (SWC) and Subcommittee meetings of SWF were held 7 times
during the year.
At the industry level, there were two strikes by United Forum of Bank Unions
(covering both award and supervisory staff) during the year, ie, one day strike on
18/12/2013 and two days strike on 10th and 11th February, 2014.
Online Employee Grievance Redressal System introduced in the Bank with effect
from 1/12/2013 which provides for faster disposal of grievances of the Staff members at
all levels.
Details of complaints received on sexual harassment against women at work place
as on 31/3/2014.
Received |
Disposed |
Pending as on 31/3/2014 |
2 |
2 |
Nil |
During FY 13-14, the following activities under various Staff Welfare Schemes were
undertaken:
Under the Scheme for reimbursement of annual health check up for retired staff /
spouse of the deceased retirees ( Rs 2,000/- per financial year) 4,102 applications were
paid during the financial year.
Under the scheme for reimbursement of health check up of spouse of staff members
(ie, Rs 1,400/- per financial year) 3,852 applications were received during the financial
year.
Super Suraksha Insurance Scheme for employees was renewed with the life cover of
Rs 5.00 lac per employee. 31 claims were settled under this scheme during this financial
year.
At present 20 holiday homes are functioning at 19 centers.
Scholarships and tuition fees for wards of staff members amounting to Rs 112.39
lac were disbursed.
Under the outpatient scheme reimbursement amounting to Rs 96.54 lac was made
during this financial year.
29 applications were considered for payment under the scheme of financial
assistance for expenses incurred by Staff Members for physically / mentally challenged /
retarded / spastic dependent wards.
31 claims amounting to Rs 44.47 lac were paid under the scheme of part payment
of outstanding in loan accounts at the time of death of an employee.
156 claims were paid under the funeral expenses scheme during this financial
year.
Bank Fest was conducted at Thiruvananthapuram from 5th December, 2013 to 7th
December, 2013. More than 500 staff members participated from all the Zones.
16. Legal Services
The Bank has a well-established Law Department with law officers placed at Head Office,
Zonal / Regional Offices and also at various Centers, and it plays a significant role in
various activities of the bank. This Department performs multifarious duties such as
preparation of general and case-specific documents, vetting and scrutiny of loan
documents, giving advice on legal issues etc. This Department also plays an important role
in the matter of recovery. Suits and DRT applications filed for recovery of dues are
arranged and followed up by the Law Officers. They also assist the branches and other
operational functionaries in enforcement of security under the SARFAESI Act, 2002 and also
in defending the cases filed against the Bank before DRTs/DRATs/High Courts in this
regard. Various cases, petitions and claims against the Bank filed in various High Courts,
Tribunals, Civil Courts, Consumer Forum, Ombudsman, Labour Courts, Human Rights Commission
and other authorities are defended under the advice and guidance of the Law Department.
In addition to the above, Law Department has launched Law Portal for the
internal use of the Bank. Law Portal is very informative and user friendly and helps the
functionaries in accessing the panel of advocates, formats for documentation / SARFAESI,
acts, rules, instructions, noti_cations, case laws etc. which are relevant for bankers.
17. Public Relations and Publicity
The Public Relations Department shoulders the responsibility of disseminating various
information projecting Banks image among public and government departments. The department
maintained close rapport with the Government departments, media, commercial and social
organizations and the general public.
Extensive publicity was given through Newspapers, Hoardings, sponsored programmes,
Visual and Electronic Media, to popularize Banks products. The marketing efforts at
the Branches, supported by an intensive advertisement campaign all through the year at
corporate level yielded impressive results on specific products
During the year, the Bank was one of the main sponsors of Nehru Trophy Boat Race,
Kerala University Youth Festival, E-payment and E tender launching, NORKA Global meet.
Programmes conducted by CII, NIPM, MPEDA, Costal Area Development Corporation, SIDCO,
IIST, Kerala State Sports Council, Rotary Club, District Industries Centre, Kerala Police,
ASIANET, Malayala Manorama, Mathrubhoomi, Times of India. were also supported by the Bank.
Huge publicity was derived through the sponsorship of Sri Gopinath Muthucads Magic
for awareness against the evils of drug and alcohol.
The prestigious SBT Prathibha Samman award selection process was completed
this year also and Dr Swaminathan the father of "Agriculture Revolution" in
India, Sri K E Faizal, renowned social worker and Sri T K Jose IAS, the person behind the
successful implementation of "Kudumbashree" in Kerala were selected as the award
winners.
With an intention to impart competitive knowledge, and to improve publicity among the
youth of Kerala, Bank conducted the Intel Teen Quiz Programme during the year.
Fifty colleges from various parts of the state participated in the programme. Our Managing
Director gave away the prizes.
This year, many new hoardings were put up at vantage points in Ernakulam and Kozhikode
to increase the exposure of brand SBT in the commercial cities of Kerala. The Bank
sponsored the installation of a Digital Signage Board at Vyttila Mobility Hub, Ernakulam,.
In association with Asianet the Bank sponsored an Auto Expo at Kozhikode. Maximum
publicity was derived through sponsoring the "SBT-JPL Cricket tournament organised by
the Press club. The Bank also supported the International Film Festival by way of
sponsorship.
The Bank won the second prize under PSU for the float presented in connection with the
Onam celebration conducted by Department of Tourism, Government of Kerala.
The Banks Calendar for 2014 with the theme of "Flowers of Kerala", was
widely acclaimed by the public and the Media. Banks internal house magazine
"Mythri" still retains its eminence among other such publications.
The Bank opened pilgrim service centers at Pampa and Sannidhanam to cater to specific
banking requirements of the pilgrims to Sabarimala, which generated tremendous publicity
and goodwill for the Bank. We have also sponsored the Sabarimala Police web portal of
Virtual Queue which was utilized by 25 lac pilgrims this year.
18. Progressive Use of Hindi
The Bank complied with the provisions relating to the Official
Languages Act, rules and instructions, directives of Govt. of India and Reserve Bank of
India. As per the guidelines of the Reserve Bank of India, the Bank introduced SBT
Rajabhasha Shield for Zonal / Regional Offices situated at linguistic regions A, B and C.
Hindi workshops and Hindi programmes were conducted for the benefit of staff members, to
increase their knowledge of functional Hindi and attending to correspondence in Hindi. All
the Letters received in Hindi were essentially replied to in Hindi.
Awards won:
The Bank participated in the State Level Official Language Exhibition instituted by
Kerala Hindi Prachar Sabha and won First Prize for implementation of Official Language
Policy. Bank secured First Prize instituted by the Town Official Language Implementation
Committee, Thiruvananthapuram for the implementation of Official Language Policy in Public
Sector .The Zonal Office, Ernakulam, Kozhikode and Thiruvananthapuram secured shields from
their respective Town Official Language Implementation Committees for the implementation
of Official Language Policy. The Ernakulam Zonal Office received the Award for the
implementation of Official Language Policy, from the Govt. of India, Regional
Implementation Office (SouthWest) Ministry of Home Affairs, Dept. of Official
Language, Kochi.
Magazine and Publication:
Annual publication Swathi the Banks Hindi Magazine Rajabhasha
Sahayika and "Phrases of official noting" were also published. Banks
Zonal Offices at Ernakulam and Kottayam published Hindi Magazines during the year.
Programmes and Awards sponsored:
During the year, various competitions were held for school level students in Hindi.
Hindi Fortnight / Hindi Day were also celebrated at Head Office, Zonal Offices and
Regional Offices. Hindi Workshops were also conducted at Zonal Offices.
Each year the Bank sponsors "SBT P.G. Vasudev Puraskar" organized by Hindi
Vidyapeeth Kerala. The award is for the noted Hindi Writers and contribution to Hindi
language in Kerala. This year the award has honored the noted Hindi writer Dr. K.S
Somanathan Nair of Kerala. The Bank also sponsors "SBT Hindi Sahitya Puraskar"
organized by the Kerala Hindi Sahitya Academy. This year the award has honored the noted
Hindi Writers Dr.Jayasree O. and Dr. K.G.Unnikrishnan of Kerala.
19. Branch Network
The Bank opened 104 new branches during the year. As at the end of 31st March, 2014 the
total number of branches touched 1117, and now is represented in 15 States and 3 Union
Territories. The Bank also has 13 extension counters.
The number of branches in Kerala increased from 758 in March, 2013 to 820 as on 31st
March, 2014. A new Zonal office at Bengaluru was opened during the year. Seven Regional
offices were opened at Thiruvalla, Kottarakara, Madurai, Thodupuzha, Hyderabad, Pala &
Malappuram during the year for better operational control and faster credit dispensation.
The Bank has 43 Specialised Personal Segment branches, 11 NRI branches, 1 Housing
Finance branch, 5 Treasury branches, 10 Service branches, 17 Commercial Business Network
(CBNW) branches, 7 Commercial Network (CNW) branches, 20 Gold Point branches, 10
Specialised Krishi Point branches (Agricultural Development Branches), 8 Specialized SME
branches, 2 Asset Recovery Management Branches, 1 Micro Credit branch, 1 Specialised
branch for women entrepreneur, 1 Branch for State Government Transactions and 1
International Service Branch. Under the BPR initiatives, Bank has 14 RASMECCCs, 1 CPPC, 6
SARC, 2 TFCPCs, 1 LCPC and 19 CACs. The Bank is having 2 Exchange Bureaus, one at Kochi
and another at Kozhikode in addition to the above branches/offices.
20. Premises
The Bank has adopted a new web based "Fixed Assets Management System",
developed in-house. The assets owned by Bank and that purchased by officers, for use in
their quarters, under the existing scheme of the Bank are captured under the system.
A new floor of 4500 sq.ft area was constructed in 2nd floor of NAC branch
building in the Head Office campus and suitably connected to Head office building at its
3rd floor. The space was fully furnished and air conditioned and several departments
shifted to this floor in October 2013.
The entire 6th floor of Head Office was renovated and converted into an
executive floor to accommodate cabins for 8 General Managers and a conference hall. An
ultra modern ambience with several energy saving features have been incorporated.
An Asset Tracking Centre with 40 seats was set up in a 3,200 sq.ft premises at
Pattom..
The Bank participated in auctions conducted by Delhi Development Authority (DDA)
and successfully bid for a 200 sq.m plot in Sector 18, Rohini, New Delhi. Steps have been
initiated for construction of quarters for officers on this plot.
21. Corporate Social Responsibility (CSR)
Bank, under Corporate Social Responsibility initiatives has extended a wide range of
social activities both in rural and urban areas to serve the community at large. The major
CSR initiatives under taken by the Bank during the year are as under:
Medical equipment like BP apparatus, glucometer kit to Life Style Disease Clinic
managed by Malabar Cancer Society Kannur - Yuva Vimukthi Project .
Donation of ceiling fans and water puri_ers to needy schools all over India.
Installation of solar lighting panels at school building, provision of books,
stationery items, bags and laboratory equipment to the students at Shanti Bhavan
Educational Trust Residential School Hosur.
Donation of Ambulance to Deena Daya Seva Trust, Thodupuzha.
Reimbursed the full treatment and food expenses of identified deserving patients
at Regional Cancer Centre Thiruvananthapuram, for one day.
Donation of EEG machine to Vivekananda Medical Mission Hospital Attapady
hospital.
Provision of Mid-day meal to 12,000 students in 52 institutions in Central
Kerala.
Reimbursed full expenses of poor cancer patients for two days at Malabar Cancer
Centre Thalassery .
21.1 Social Circles
Social circles are voluntary organizations formed by the staff members working in
branches and administrative offices for undertaking social services. Bank is having 639
social circles functioning at various branches and administrative offices, spread all over
India. Their activities include, Student welfare activities, health care programmes,
welfare programmes for differentially abled people and inmates of orphanages &
geriatric centres.
22. Sports and Games
Cricket "A" Team
Banks Cricket A team participated in All India/All Kerala tournaments. Out of the
13 tournaments played, the team won 5 and became runner up in another 2 tournaments.
During the year the team won All Kerala Coromandal Cement Trophy 2012-2013, All Kerala
Coromandal Trophy 2013-2014, Mackey Memorial Tournament, All Kerala G.V. Raja Tournament,
All India Bharamathi Tournament held at Pune and became runner up in Mini Muthoot
Tournament and Capt. Jerry Raj Tournament. In recognition of the performance 6 players
were selected by the Kerala State team to represent the State in the Ranji Trophy and four
others in U-25 and U-22 Kerala State Teams. It is also a matter of pride that one of the
players, Shri. V A Jagadish was selected to the India "A" team. This is the
first time that one of the players of the Bank got national recognition.
Cricket "B" Team
Cricket B Team participated in the Trivandrum Dist league matches and also In the All
Kerala GV Raja Tournament. Out of the 8 matches they played, the team won four matches.
Football Team
The Senior Football team participated in 5 tournaments and won 3 and became runner-up
in 1 and lost 1. The Team won the All India ONGC Tournament held at Mandi, Himachal
Pradesh, All India United Trophy held at Kolhapur Maharashtra, Kerala State Club Football
Championship - 2013 at Meenangadi, Wayanad and became runner up in the All India Jayant
Patil Trophy held at Miraj, Maharashtra.
Eight players of the Bank participated in the Santhosh Trophy, representing the Kerala
State Team, during the period.
23. Changes in the Board of Directors
During the course of the financial year 2013-14, the following changes have occurred in
the Board of Directors of the Bank.
i) Shri P Nanda Kumaran, Managing Director, State Bank of Travancore, upon
superannuation on 31st May, 2013 tendered his resignation from the Board of Directors.
ii) Shri S Vishvanathan, Managing Director & Group Executive (A&S) was
appointed as Director, under clause (c) of sub-section (1) of Section 25 of the State Bank
of India (Subsidiary Banks) Act, 1959, with effect from 17th July, 2013.
iii) The tenure of Shri K Muraleedharan Pillai, Director, ended on 18th July, 2013.
iv) Shri P V Prasad, Special Assistant, State Bank of Travancore, was appointed as
Workmen Employee Director, under Clause (ca) of sub-section (1) of Section 25 of the State
Bank of India (Subsidiary Banks) Act, 1959, with effect from 19th July, 2013 in place of
Shri K Muraleedharan Pillai, Director.
v) Shri Pratip Chaudhuri, Chairman, State Bank of India, under Clause (a) of
sub-section (1) of Section 25 of the State Bank of India (Subsidiary Banks) Act, 1959,
upon superannuation on 30th September, 2013, tendered his resignation from the Board of
Directors.
vi) Shri C Rajkumar, Chief Manager, State Bank of Travancore, was reappointed as
Director, under Clause (cb) of sub-section (1) of Section 25 of the State Bank of India
(Subsidiary Banks) Act, 1959, with effect from 1st October, 2013.
vii) Smt Arundhati Bhattacharya became a Director and Chairman of the Board of
Directors of the Bank under Clause (a) of sub-section (1) of Section 25 of the State Bank
of India (Subsidiary Banks) Act, 1959, with effect from 7th October, 2013.
viii) Shri V Kaliappan, became a Director, under Clause (c) of sub-section (1) of
Section 25 of the State Bank of India (Subsidiary Banks) Act, 1959, with effect from 11th
November, 2013.
ix) Shri Pradip Kumar Sanyal, General Manager (A&S), State Bank of India, Director,
under Clause (c) of sub-section (1) of Section 25 of the State Bank of India (Subsidiary
Banks) Act 1959, tendered his resignation from the Board of Directors of the Bank with
effect from 20th November, 2013.
x) Shri. Purna Chandra Jena, General Manager (A&S), State Bank of India, was
appointed as Director, under Clause (c) of sub-section (1) of Section 25 of the State Bank
of India (Subsidiary Banks) Act, 1959, with effect from 26th November, 2013 in place of
Shri Pradip Kumar Sanyal.
xi) Shri Jeevandas Narayan, appointed as Managing Director from 10th January, 2014,
became a Director, on the Board of Directors in terms of section 25(1) (aa) of the State
Bank of India (Subsidiary Banks) Act, 1959. xii) The tenure of Shri C N Venugopalan,
Director, ended on 10th January, 2014.
xiii) The tenure of Shri T Balakrishnan and Shri K T Rajagopalan, Directors, ended on
31st January, 2014.
The Board of Directors welcomed Smt Arundhati Bhattacharya, Shri S Vishvanathan, Shri
Jeevandas Narayan, Shri P V Prasad, Shri C Rajkumar, Shri V Kaliappan, Shri. Purna Chandra
Jena, as Directors of the Bank.
The Board of Directors placed on record their appreciation and thanks for the valuable
services rendered by Shri Pratip Chaudhuri, Shri P Nanda Kumaran, Shri K Muraleedharan
Pillai, Shri Pradip Kumar Sanyal, Shri C N Venugopalan, Shri T Balakrishnan and Shri K T
Rajagopalan during their tenure as Directors of the Bank.
24. Board and Executive Committee Meetings
During the year 2013-14, seven Meetings of the Board of Directors were held. The
Executive Committee of the Board of Directors met 13 times.
25. Statutory Audit
M/s. Abraham & Jose, Thrissur, M/s. G.K. Rao & Co., Hyderabad, M/s R.G.N.Price
& Co, Chennai, and M/s Kumar Vijay Gupta & Co. New Delhi were appointed as
Statutory Auditors of the Bank for the year 2013-14 by State Bank of India, with the
approval of Reserve Bank of India. The Board of Directors sincerely appreciates the
valuable suggestions offered and the excellent support and cooperation extended by the
Statutory Central Auditors for the completion of the audit well in time.
26. Acknowledgments
The Board of Directors gratefully acknowledge the valuable advice and support extended
by the Ministry of Finance, Government of India, Reserve Bank of India, Indian Banks
Association, State Bank of India and the cooperation and support extended by the
Securities and Exchange Board of India, Financial Institutions, Stock Exchanges and
Correspondents. The Board also wishes to place on record its sincere appreciation for the
excellent support, goodwill and patronage received from the esteemed customers and
shareholders, the support and cooperation extended and contributions made by the members
of staff- award and supervising. The Board also places on record its appreciation for the
contributions made by the Employees Union and Officers Association.
By Order of the Board,
Jeevandas Narayan
Managing Director
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