About
Oriental Bank of Commerce(Merged
Oriental Bank of Commerce (OBC) was started in Lahore, Pakistan in 19th February of the year 1943, made a modest beginning under its Founding Father, Late Rai Bahadur Lala Sohan Lal. OBC is a public sector bank. The bank operates into four business segments comprising of Treasury Operations, Corporate / Wholesale Banking, Retail Banking and Other Banking Business Operations. As on 31 March 2018, the bank's total number of branches stood at 2,389 as against 2,376 as on 31 March 2017. As on 31 March 2018, the Bank has 2,632 ATMs/ Recyclers, which include 2,334 Onsite ATMs, 296 Offsite ATMs and 2 Mobile ATMs.
In 1947, the Bank had to face the holocaust of partition. Branches in the newly formed Pakistan had closed down and the Registered Office had shifted from Lahore to Amritsar. In the year 1951, the registered office was relocated to Delhi. It was nationalized in April of the year 1980. In the year 1992, the merchant banking division of the bank was set up and the bank was authorized to act as a category-I merchant banker by SEBI. OBC launched the scheme christened 'The Comprehensive Village Development Programme' on the auspicious day of Baisakhi, the 13th April of the year 1997 at three villages in Punjab namely Rurki Kalan (Distt. Sangrur), Raje Majra (Distt. Ropar) and Khaira Majha (Distt. Jaladhar) and two villages in Haryana, namely Khunga (Distt. Jind) and Narwal (Distt. Kaithal). Two Banks namely Punjab Co-operative Bank Ltd and Bari Doab Bank Ltd were amalgamated with the bank in the same year 1997. In the year 1998, the bank had joined hands with Citibank to launch OBC co-branded credit card. OBC had set up special branch and asset recovery branch, one each at Delhi and Mumbai in the year 1999. The Bank had opened specialised branch for women entrepreneurs in the year 2002 and also in the same year OBC made tie up with Corporation Bank to share each other's ATM network. For the purpose of Centralised Banking Solution (CBS, OBC had joined hands with Infosys Technologies Ltd and Wipro Ltd in the year 2003. during the same year 203, the Bank and Small Industries Development Bank of India (SIDBI) had agreed to work on projects in the field of small-scale, infrastructure and service areas.
As per the Bank's IT Plan, the Bank had implemented 'Centralised Banking Solutions (CBS)' with effect from March 2004. In the identical year 2004, OBC made tie up with New Holland Tractors and the Global Trust Bank was merged with the bank. The bank came out with a second public issue in 2005 whereby government holding reduced to 51%. During the year 2006, the Bank had signed the Memorandum of Understanding (MOU) with the IL & FS Investment Securities Ltd, for providing Online / Offline Share Trading facility for its customers. OBC had launched its Internet Banking Services (iBanking) in all CBS Branches of the Bank during November of the year 2006. In 2007, OBC had joined hands with Escorts Ltd, a tractor manufacturer for providing retail tractor finance to farmers. As of March 2007, the bank had signed the MOU with IDBI Capital Market Services for providing online share trading facility for its customers. In the same period Canara Bank, HSBC Insurance (Asia-Pacific) Holdings and the bank had signed a non-binding memorandum of understanding to jointly establish a life insurance company in India.
The Bank had launched Oriental Bank Navkiran Deposit Scheme in February of the year 2008. Kotak Mahindra Asset Management Company entered into a distribution tie-up with OBC in March of the year 2008. The Joint Venture was made with Canara Bank and HSBC in 16th June of the year 2008 and the marketing of insurance products commenced through its branch network.
During 2013-14, the bank raised Equity Capital by way of preferential allotment of shares to the Government of India by issuing 8087561 equity shares of Rs.10 each at an issue price of Rs.185.47 per share aggregating to Rs.150 crore on 12 December 2013 thus increasing the paid-up capital to Rs.299.85 crore.
During FY 2013-14, the bank sold 25841life insurance policies with First Premium Collection of Rs.76.39 Crores and earned commission of Rs.6.99 Crores (Net). Besides, the bank also sourced 2684 certificates of insurance under Group Secure Scheme (GSS) for housing & education loan thereby collecting a premium of Rs.9.49 crores.
The bank has been selling Oriental Mediclaim Policy since 3 October 2011 through its branches across the country. During the FY 2013-14, the bank marketed 28719 Oriental Mediclaim policies and collected a premium of Rs.11.80 crores thereby earning a net commission of Rs.1.77 crores.In FY 2013-14, for providing Online Trading facility to its Demat Account holders, the bank tied up with the M/s. IDBI Capital Market Services Ltd. & M/s. Karvy Stock Broking Limited.
During the financial year 2013-14, the bank deployed 714 additional ATMs out of which 101 ATMs have been deployed at Metro locations, 126 ATMs have been deployed at Urban locations, 192 ATMs have been deployed at Semi-Urban locations and 295 ATMs at Rural Areas. During 2013-14, the Bank opened 126 new branches.
During FY 2015-16, the bank sold 22999 life insurance policies on retail/Individual platform with First Premium Collection of Rs 97.06 Crores and has earned commission of Rs 11.46 Crores. Besides, the bank also sourced 2758 policies under Group Secure Scheme (GSS) for housing & education loan thereby collecting a premium of Rs 9.99 crores.
The bank has been selling Oriental Mediclaim Policy since 3 October 2011 through its branches across the country. During the FY 2015-16, the bank marketed 51193 Oriental Mediclaim policies and collected a premium of Rs 23.41 crores thereby earning a commission of Rs 3.43 crores.
During the year 2015-16, the bank handled 60 IPO/Rights issues.
During 2015-16, the bank opened 100 new branches.
Pursuant to the PSB Reforms Agenda of Govt. of India, the shareholders of the bank in the Extraordinary General Meeting held on 15 March 2018 approved, through special resolution, the issue and allotment of 28,65,97,110 equity shares of face value of Rs. 10/- each to Government of India at the rate of Rs. 124.60 per share (including premium). The Bank received a sum of Rs. 3571.00 crore on 27 March 2018 as contribution of the Central Government for preferential allotment of equity shares and the allotment was effected on 28 March 2018 upon receipt of all regulatory approvals.
During FY 2017-18, the bank sold 28053 life insurance policies on retail/Individual platform with First Premium Collection of Rs. 183.25 Crores and has earned commission of Rs. 32.31 Crores. Besides, the bank also sourced 5287 policies under Group Secure Scheme (GSS) for Housing & Education Loan thereby collecting a premium of Rs. 18.38 crores.During the FY 2017-18, the bank marketed 64253 mediclaim/ health policies and collected a premium of Rs. 34.34 Crores thereby earning a commission of Rs. 3.06 Crores.
During 2017-18, the bank opened 13 new branches.
Oriental Bank of Commerce(Merged
Chairman Speech
Dear Shareholders,
I have great pleasure in welcoming you all to the 25th
Annual General Meeting of your Bank and present the Annual Report for the year ended 31st
March 2019.
Before I present the performance highlights of the Bank, I would like
to place before you the general macroeconomic environment within which your Bank has
performed in FY18-19.
ECONOMY AT A GLANCE
India's GDP growth stood at 5.8% for Q4 FY19, lower than the 6.6%
growth witnessed in the previous quarter. Gross Value Addition (GVA) has shown a growth of
5.7% in the Jan-Mar 2019 period compared to 6.3% in Q3 FY19. While growth in the services
sector remained comfortable, agriculture and industry witnessed a significant slowdown.
Scattered rainfall conditions and slowdown in the rural economy led
farm growth to witness a steady decline over the course of FY19, falling from a growth of
5.1% in Q1 FY19 to a contraction of 0.1% in Q4 FY19. As such, agriculture sector growth
stood at 2.9% in FY19 as compared to 5.0% in FY18. Going forward, dependent upon monsoon
conditions this season and initiatives to revive the rural economy, agriculture sector is
expected to be a crucial growth driver in the incoming fiscal.
Growth in Industry stood at 3.4% in Q4 FY19 compared to 6.0% in Q3 FY19
led by a slowdown in manufacturing and electricity sectors. In the Services sector, growth
was led by Financial and Real-estate sector (9.5% in Q4 vis--vis 7.2% in Q3) as well as
government related services (10.7% in Q4 vis--vis 7.5% in Q3). Overall, service sector
growth remained steady at 7.7% in FY19 compared to 7.8% in FY18.
India's Consumer Price-based inflation for April 2019 stood
at2.92% compared to 2.86% for March 2019. Core CPI decelerated to 4.54% in April 2019 from
4.99% in March 2019. Wholesale Price inflation (WPI) stood at 3.07% for Apr-19 compared to
3.18% in Mar- 19despitesignificant momentum in the prices of primary articles due to a
favourable base.
Asset quality showed improvement with Scheduled Commercial Banks'
gross non-performing assets (GNPA) ratio declining from 11.5% in March 2018 to 10.8% in
September 2018. Their net non-performing assets (NNPA) ratio also registered a decline
during the period. Now, I would like to present before you the business highlights of the
Bank for the FY18-19:-
PERFORMANCE HIGHLIGHTS
• Business Mix as on March-19 stood at Rs. 4.04 lac crore as
against Rs. 3.55 lac crore as on March-18. Total Deposits and Advances stood at Rs. 2.32
lac crore and Rs.1.71 lac crore respectively. CASA deposits have increased from Rs 65,697
crore in March-18 to Rs 68,387 crore in March-19.
• Bank bounced back to quarterly profits in September 2018 and has
since shown net profits for three consecutive quarters. The Bank has also bounced back to
annual profits after 2 years of consecutive annual losses.
• The Operating Profits stood at Rs. 3754 crore and Net Profit
stood at Rs. 55 crore for FY 19. Business per Employee was Rs.18.6 crore, Business per
Branch was 169.12 crore and Book value per share of the bank was Rs.100.99 as of March
2019.
• Bank advance has increased by 15.75% on y-o-y basis while the
Credit Risk Weighted Assets have increased by 0.96% only due to capital optimized growth.
The Credit risk weighted assets to gross advance declined to 57.59% in March 2019 compared
to 63% in March 2018 reflecting bank's focus on optimizing risk efficiency.
• During FY19, Bank's retail portfolio grew by 41.62% and
MSME Advances by 12.63% Y-o-Y while RAM (Retail, Agriculture and MSME) accounted for
54.94% of Bank's total advances as on 31st March 2019 (excluding IBPC).
• Digital Banking Transactions increased from 63% in FY18 to 73%
in FY19.
• A separate Stressed Assets Management Vertical has been created
at Corporate Office and Six General Managers have been posted in the field with exclusive
mandate of focusing on Recovery.
• As a result of the continuous thrust on recovery and various
efforts made in the direction, the Bank made cash recovery and upgradation of Rs 6597
crore in FY 19 as against Rs 3161 crore in FY 2018 while recovery in Technically Written
Off/Recorded Interest accounts amounted to Rs 1572 crore as against Rs 363 crore in FY
2017-18.
• Flesh Slippages reduced by 43% to Rs 7066 crore during FY
2018-19 as compared to Rs.12429 crore during FY 2017-18. Provision Coverage Ratio of the
Bank improved to 75.84% as on 31st March 2019 from 64.07% as on 31st
March 2018. The Gross NPA of the Bank significantly reduced from 17.63% as on March 2018
to 12.66% as on March 2019 while Net NPA also reduced to 5.93% as at March 2019 from
10.48% as at March 2018.
• Capital Adequacy of the Bank stood at 12.73% as at March 2019,
with Tier-1 Ratio being 9.98%.
• During FY 2018-19, Bank received capital infusion from the
Government of India aggregating to Rs.6686 crore in two tranches. Also, the Bank was able
to raise capital of Rs.250 crore by way of allotment of shares to employees under
OBC-Employee Share Purchase Scheme. The shareholding of Government of India increased from
77.23% as on 31st March 2018 to 87.58% as on 31st March 2019.
• During FY 19, the Bank redeemed 8.75% Upper Tier II Bonds
aggregating to र500.00 Crore upon exercise of Call Option with the prior
approval of RBI.
MAJOR DEVELOPMENTS IN FY 19
• The restrictions imposed on the Bank by RBI under the PCA
framework were lifted on 31st January 2019 in view of its improved performance
and the Bank meeting the benchmark levels as per the PCA framework.
• Digital Processing of Mudra Loans under ‘Rule based
Processing' was introduced along with MSME loan delivery through PSB 59
• During the year, the Bank was recognized amongst the 500
valuable Banking Brands 2018 by Brand Finance, Best Performing Bank under Atal Pension
Yojana by PFRDA, 2nd runner up Bank Demat A/Cs in PSB category by NSDL and 2nd
runner up in IBA Technology Award.
• The Bank performed exceedingly well under various parameters of
EASE Index of the PSB Reform Agenda of Govt. of India.
In terms of the EASE Index Ranking of the PSB Reform Agenda of Govt. of
India for March 2019, Bank occupied 1st position amongst mid-sized Public
Sector Banks and 4th among 19 PSBs. Besides, the Bank was also awarded for its
performance with respect to ‘Responsible Banking & ‘Udyami Mitra for
MSMEs' under the EASE Parameters.
• The Govt. of India appreciated the Bank's Verticalized
Organizational Structure and the Grievance Redressal System and recognized the Bank as a
resource bank for other Public Sector Banks to follow.
CAPACITY BUILDING
The Bank has state of the art infrastructure for imparting training in
its six HRDIs where the focus is on learning through case studies and presentations. Apart
from same, the employees are sent for training to reputed management organizations like
Institute for Development and Research in Banking Technology, Hyderabad, National
Institute of Banking and Finance (NIBM), National Institute of Banking Studies and
Corporate Management (NIBSCOM), Southern India Banks' Staff Training College
Bangalore (SIBSTC). During FY 2018-19, 79843 Training Man-days were completed in the Bank.
FINANCIAL INCLUSION PROGRAMME
The Bank takes the Financial Inclusion programs as business opportunity
and leverages this to increase and diversify its customer base. Since the launch of
Pradhan Mantri Jan-Dhan Yojna in August 2014, the Bank has opened 48.83 lakhs such
accounts which have aggregate deposits of Rs 4012.74 crore. Under Pradhan Mantri Mudra
Yojna, the Bank has sanctioned 121327 accounts and has disbursed Rs. 2990.20 crore in FY
2018-19. The Bank has done 45.52 lakh enrolments in Pradhan Mantri Suraksha Bima Yojna and
Pradhan Mantri Jeevan Jyoti Bima Yojna.
LOOKING FORWARD
During current FY 2019-20, the main focus shall be on Profit
maximization through optimized business mix and continued emphasis on Retail / MSME
portfolio as drivers for business growth. The Bank shall continue to make efforts towards
maintaining the momentum of recovery in NPA accounts while simultaneously monitoring the
asset quality to contain further slippages. The Bank is expecting resolutions in the
accounts where NCLT cases were filed during last FY.
Bank's strategic vision is to be National Bank for Retail and MSME
with focus on RAM & Mid Corporate segment and to become a model mid-sized PSB.
Adopting a customer centric approach would be the core driver for achieving qualitative
growth with increased operational efficiency.
The Bank shall continue to leverage Digital Banking Platforms to meet
the requirements of millennial and new age customers and for enhancing overall
customers' experience.
The Bank shall strive to maintain the key parameters above the
benchmark levels stipulated by RBI under the ‘Monitorable Action Plan' of RBI.
CONCLUDING REMARKS
I would like to take this opportunity to welcome Sh Vijay Dube, Sh
Balakrishna Alse S. (Executive Directors) and Sh S.M. N. Swamy (RBI Nominee Director) who
joined the Board of the Bank. I also appreciate the contribution of Sh Himanshu Joshi
(Executive Director), Smt. Mala Srivastava (Part Time Non-Official Director) and S Ganesh
Kumar (RBI Nominee Director) who laid down office, for their valuable contribution to the
Bank.
On behalf of all the Board of Directors and on my own behalf, I convey
my sincere gratitude and thanks to the Shareholders of the Bank for reposing their faith
in the Management and Bank. I would like to use this occasion to thank every employee of
OBC for their sincerity & dedication and our customers for their continuous loyalty
and patronage. My sincere thanks and regards to the Ministry of Finance, Govt. of India
and Reserve Bank of India for their continued guidance and support. I solicit your
continued cooperation and encouragement in future also.
Mukesh Kumar Jain
Managing Director & Chief Executive Officer
  Â
Oriental Bank of Commerce(Merged
Company History
Oriental Bank of Commerce (OBC) was started in Lahore, Pakistan in 19th February of the year 1943, made a modest beginning under its Founding Father, Late Rai Bahadur Lala Sohan Lal. OBC is a public sector bank. The bank operates into four business segments comprising of Treasury Operations, Corporate / Wholesale Banking, Retail Banking and Other Banking Business Operations. As on 31 March 2018, the bank's total number of branches stood at 2,389 as against 2,376 as on 31 March 2017. As on 31 March 2018, the Bank has 2,632 ATMs/ Recyclers, which include 2,334 Onsite ATMs, 296 Offsite ATMs and 2 Mobile ATMs.
In 1947, the Bank had to face the holocaust of partition. Branches in the newly formed Pakistan had closed down and the Registered Office had shifted from Lahore to Amritsar. In the year 1951, the registered office was relocated to Delhi. It was nationalized in April of the year 1980. In the year 1992, the merchant banking division of the bank was set up and the bank was authorized to act as a category-I merchant banker by SEBI. OBC launched the scheme christened 'The Comprehensive Village Development Programme' on the auspicious day of Baisakhi, the 13th April of the year 1997 at three villages in Punjab namely Rurki Kalan (Distt. Sangrur), Raje Majra (Distt. Ropar) and Khaira Majha (Distt. Jaladhar) and two villages in Haryana, namely Khunga (Distt. Jind) and Narwal (Distt. Kaithal). Two Banks namely Punjab Co-operative Bank Ltd and Bari Doab Bank Ltd were amalgamated with the bank in the same year 1997. In the year 1998, the bank had joined hands with Citibank to launch OBC co-branded credit card. OBC had set up special branch and asset recovery branch, one each at Delhi and Mumbai in the year 1999. The Bank had opened specialised branch for women entrepreneurs in the year 2002 and also in the same year OBC made tie up with Corporation Bank to share each other's ATM network. For the purpose of Centralised Banking Solution (CBS, OBC had joined hands with Infosys Technologies Ltd and Wipro Ltd in the year 2003. during the same year 203, the Bank and Small Industries Development Bank of India (SIDBI) had agreed to work on projects in the field of small-scale, infrastructure and service areas.
As per the Bank's IT Plan, the Bank had implemented 'Centralised Banking Solutions (CBS)' with effect from March 2004. In the identical year 2004, OBC made tie up with New Holland Tractors and the Global Trust Bank was merged with the bank. The bank came out with a second public issue in 2005 whereby government holding reduced to 51%. During the year 2006, the Bank had signed the Memorandum of Understanding (MOU) with the IL & FS Investment Securities Ltd, for providing Online / Offline Share Trading facility for its customers. OBC had launched its Internet Banking Services (iBanking) in all CBS Branches of the Bank during November of the year 2006. In 2007, OBC had joined hands with Escorts Ltd, a tractor manufacturer for providing retail tractor finance to farmers. As of March 2007, the bank had signed the MOU with IDBI Capital Market Services for providing online share trading facility for its customers. In the same period Canara Bank, HSBC Insurance (Asia-Pacific) Holdings and the bank had signed a non-binding memorandum of understanding to jointly establish a life insurance company in India.
The Bank had launched Oriental Bank Navkiran Deposit Scheme in February of the year 2008. Kotak Mahindra Asset Management Company entered into a distribution tie-up with OBC in March of the year 2008. The Joint Venture was made with Canara Bank and HSBC in 16th June of the year 2008 and the marketing of insurance products commenced through its branch network.
During 2013-14, the bank raised Equity Capital by way of preferential allotment of shares to the Government of India by issuing 8087561 equity shares of Rs.10 each at an issue price of Rs.185.47 per share aggregating to Rs.150 crore on 12 December 2013 thus increasing the paid-up capital to Rs.299.85 crore.
During FY 2013-14, the bank sold 25841life insurance policies with First Premium Collection of Rs.76.39 Crores and earned commission of Rs.6.99 Crores (Net). Besides, the bank also sourced 2684 certificates of insurance under Group Secure Scheme (GSS) for housing & education loan thereby collecting a premium of Rs.9.49 crores.
The bank has been selling Oriental Mediclaim Policy since 3 October 2011 through its branches across the country. During the FY 2013-14, the bank marketed 28719 Oriental Mediclaim policies and collected a premium of Rs.11.80 crores thereby earning a net commission of Rs.1.77 crores.In FY 2013-14, for providing Online Trading facility to its Demat Account holders, the bank tied up with the M/s. IDBI Capital Market Services Ltd. & M/s. Karvy Stock Broking Limited.
During the financial year 2013-14, the bank deployed 714 additional ATMs out of which 101 ATMs have been deployed at Metro locations, 126 ATMs have been deployed at Urban locations, 192 ATMs have been deployed at Semi-Urban locations and 295 ATMs at Rural Areas. During 2013-14, the Bank opened 126 new branches.
During FY 2015-16, the bank sold 22999 life insurance policies on retail/Individual platform with First Premium Collection of Rs 97.06 Crores and has earned commission of Rs 11.46 Crores. Besides, the bank also sourced 2758 policies under Group Secure Scheme (GSS) for housing & education loan thereby collecting a premium of Rs 9.99 crores.
The bank has been selling Oriental Mediclaim Policy since 3 October 2011 through its branches across the country. During the FY 2015-16, the bank marketed 51193 Oriental Mediclaim policies and collected a premium of Rs 23.41 crores thereby earning a commission of Rs 3.43 crores.
During the year 2015-16, the bank handled 60 IPO/Rights issues.
During 2015-16, the bank opened 100 new branches.
Pursuant to the PSB Reforms Agenda of Govt. of India, the shareholders of the bank in the Extraordinary General Meeting held on 15 March 2018 approved, through special resolution, the issue and allotment of 28,65,97,110 equity shares of face value of Rs. 10/- each to Government of India at the rate of Rs. 124.60 per share (including premium). The Bank received a sum of Rs. 3571.00 crore on 27 March 2018 as contribution of the Central Government for preferential allotment of equity shares and the allotment was effected on 28 March 2018 upon receipt of all regulatory approvals.
During FY 2017-18, the bank sold 28053 life insurance policies on retail/Individual platform with First Premium Collection of Rs. 183.25 Crores and has earned commission of Rs. 32.31 Crores. Besides, the bank also sourced 5287 policies under Group Secure Scheme (GSS) for Housing & Education Loan thereby collecting a premium of Rs. 18.38 crores.During the FY 2017-18, the bank marketed 64253 mediclaim/ health policies and collected a premium of Rs. 34.34 Crores thereby earning a commission of Rs. 3.06 Crores.
During 2017-18, the bank opened 13 new branches.
Oriental Bank of Commerce(Merged
Directors Reports
The Board of Directors has pleasure in presenting the Bank's
Annual Report along with Audited Balance Sheet and Profit and Loss Account of the Bank for
the year ended 31st March 2019.
Business Operations
The Business of the Bank stood at र4,04,194.84 crore as on
31st March 2019 as against र3,55,552.07 crore as on 31st
March 2018. Total deposits of the Bank stood at र2,32,645.38 crore. The gross
advances as at end-March 2019 stood at र1,71,549.46 crore. The Credit
deposits ratio of the Bank, as at end-March 2019, stood at
73.77%. The Bank ensured adequate flow of credit to the productive
sectors of the economy. The Loans & Advances portfolio of the Bank is well diversified
and balanced.
Key Highlights of Bank's Performance in FY 2018-19
• During the financial year 2018-19, the Govt. of India infused
capital aggregating to र6686 crore in the Bank. The Bank also raised capital
of an amount upto र250 crore from its employees under ESPS Consequently, the
Capital Adequacy of the Bank improved to 12.73% as on 31st March 2019 from
10.50% as at 31st March 2018.
• The restrictions imposed on the Bank by RBI under the PCA
framework were lifted on 31st January 2019 in view of its improved performance
and the Bank meeting the benchmark levels as per the PCA framework.
• The Bank reported Net Profit of र55 crore for FY
2018-19 as against loss of र5872 crore for FY 2017-18.
• The Gross NPA reduced from 17.63% as at 31st March
2018 to 12.66% as on 31st March 2019 while the Net NPA declined from 10.48% as
at 31st March 2018 to 5.93% as on 31st March 2019.?? The
deposits of the Bank witnessed a growth of 12.20% y-o-y and the gross advances increased
by 15.75% y-o-y. CASA deposits as a percentage of total deposits of the Bank stood at
29.40% as on 31st March 2019.
• Retail Advances Portfolio increased by 41.62% y-o-y and MSME
Advances Portfolio increased by 12.63% y-o-y.
• Cash Recovery and Upgradation increased from F3161 crore
for FY 2017-18 to र6597 crore for FY 2018-19 while fresh slippages were
contained to र7066 crore during the reported year against र12429
crore of FY 2017-18.
• The Provision Coverage Ratio improved to 75.84% as on 31st
March 2019 from 64.07% as at 31st March 2018.
• NIM for FY 2018-19 increased to 2.73% from 2.18% for FY
2017-18.
• The Cost of Deposits decreased to 5.64% as at March 2019 from
5.67% as at March 2018, while yield on Total advances increased to 8.23% as at March 2019
from 7.73% as at March 2018.
Capital & Reserves
During the Financial Year 2018-19, the Bank received capital infusion
from the Government of India in two tranches viz. र5500 crore on 31st
December 2018 and र1186 crore on 31st January 2019. Accordingly,
upon receipt of all requisite approvals, the following shares were allotted to the
Government of India on Preferential basis: (i) 57,23,20,499 equity shares at an Issue
price of र96.10 (including premium of र86.10) per share
aggregating to र5500 crore
Financial Performance
The Bank has posted a total income of र20,536.77 crore
during the year as against र20,181.25 crore last year. The Operating Profit
of the Bank increased to र3753.76 crore for the year ended 31st
March 2019 as against र3,703.18 crore for the year ended 31st
March 2018. The Financial performance of the Bank is given below:-
| Financial Performance |
|
|
|
(Amt. in र crore) |
|
31.03.2019 |
31.03.2018 |
| Interest Income |
17867.69 |
17388.89 |
| Other Income |
2669.08 |
2792.36 |
| Total Income |
20536.77 |
20181.25 |
| Interest Paid |
12369.57 |
12888.13 |
| Operating Expenses |
4413.44 |
3589.94 |
| Total Expenses |
16783.01 |
16478.07 |
| Operating Profit |
3753.76 |
3703.18 |
| Provisions & Contingencies |
3698.77 |
9574.92 |
| Net Profit/(Loss) for the Year |
54.99 |
(5871.74) |
| before Exceptional Item |
|
|
| Less: Exceptional Item |
0.00 |
0.00 |
| Net Profit/(loss) for the year after |
54.99 |
(5871.74) |
| Exceptional Item |
|
|
| Add-Profit/(Loss) brought forward |
(5871.74) |
0.00 |
| Add-Investment Reserve Account |
0.00 |
0.00 |
| Net Profit/ (loss) available for appropriation |
(5816.75) |
(5871.74) |
| APPROPRIATION |
(5816.75) |
(5871.74) |
| Transferred to Statutory Reserve |
13.75 |
0.00 |
| Transferred to Revenue and Other reserves |
0.00 |
0.00 |
| Transferred to Special Reserve u/s 36(1)(viii) of the Income
Tax Act 1961 |
0.00 |
0.00 |
| Transferred to Capital Reserve |
31.05 |
0.00 |
| Transferred to Investment Reserve Account |
0.00 |
0.00 |
| Interim Dividend |
0.00 |
0.00 |
| Investment Fluctuation Reserve |
10.19 |
0.00 |
| Proposed Dividend |
0.00 |
0.00 |
| Tax on Dividend |
0.00 |
0.00 |
| Balance carried over to Balance Sheet |
(5871.74) |
(5871.74) |
*Figures in bracket () denote loss.
** The figures of the previous period/year have been regrouped/
rearranged, wherever considered necessary, to conform to current period/year's
classification.
Board of Directors
During the year FY 2018-19, 14 meetings of Board of Directors, 12
meetings of Management Committee of Board and 12 meetings of Audit Committee of Board,
were held. Sh. Himanshu Joshi was Executive Director of the Bank till the date of his
superannuation i.e. upto 31st October 2018. Thereafter, Shri Vijay Dube and
Shri Balakrishna Alse S were appointed in accordance with Section 9(3)(a) of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980 and they assumed charge as
Executive Directors of the Bank on 01st November 2018 and 26th
December 2018, respectively. Shri S.M. Narasimha Swamy recently joined the Bank as RBI
Nominee Director in place of Shri S. Ganesh Kumar w.e.f. 26th April 2019.
Further, Smt. Mala Srivastava, Part-Time Non-Official Director of the Bank laid down
office on 24 th April 2019 on completion of her tenure.
The Bank places on record its appreciation for the guidance received
from Shri Himanshu Joshi, Smt. Mala Srivastava and Shri S. Ganesh Kumar during
deliberations of the Board/Committees of the Board and also in the conduct of the
Bank's business during their tenure of office as Directors of the Bank.
Statutory Audit
During the year, the Bank has with the approval of the Reserve Bank of
India appointed M/s B C Jain & Co., Kanpur; M/s S N Dhawan & Co. LLP, New Delhi;
M/s S.P. Chopra & Co., New Delhi; M/s Batra Deepak & Associates, New Delhi as
Statutory Central Auditors of the Bank for FY 2018-19.
Explanations/Comments by the Board of Directors in response to
ModifiedOpinion/Adverse Remarks/Emphasis of Matter, if any, in the Independent
Auditors' Report
N.A.
Secretarial Audit
Pursuant to Regulation 24A of the SEBI Listing Regulations read with
SEBI Circular dated 08th February 2019, the Board of Directors appointed M/s.
Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct
Secretarial Audit of the Bank for the financial year ended 31st March, 2019. The
Secretarial Audit Report of the Bank is annexed to this Report.
Explanations/Comments by the Board of Directors in response to
observation, if any, in the Secretarial Audit Report
In respect of observation made by M/s. Agarwal S. & Associates,
Company Secretaries in the Secretarial Audit Report for FY 2018-19 w.r.t. the composition
of the Board of Directors of the listed entity in view of vacancies under section
9(3)(e),(f) & (h) of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980, it is stated that in terms of Section 9(3) of the aforesaid Act, all the
directors on the Board are appointed /nominated by the Central Government other than three
directors elected by the shareholders of the Bank (other than Central Government). The
Bank has through various communications requested the Ministry of Finance, Govt. of India
from time to time to nominate directors in respect of the existing vacancies. Further, the
position of existing vacancies on the Board is also being apprised to the Ministry on
monthly basis.
Corporate Social Responsibility
Bank's aim is to minimize the impact of business on the
environment, have a positive effect on society and seek to work with other NGOs or
non-profit charities, development agencies, organizations etc. who embrace these
objectives. We aim to use natural resources responsibly, work with community projects and
encourage and educate our employees in these goals. Staff members are encouraged to make
contributions by understanding the aspirations of underprivileged sections and endeavoring
to evolve measures to remove indisputable social and development lacunae. Under the
community service various welfare and social activities are undertaken by the Bank both in
Banking and non-Banking areas to raise the quality of life of the downtrodden and under
privileged sections of the society.
CSR initiatives undertaken by the Bank in FY 2018-19
The Bank undertakes various CSR activities on an ongoing basis which
includes training programs at RSETIS for self employment generating activities etc. Bank
has also sanctioned TATA ACE TEMPO as a part of community services to NGO for providing
assistance to poor and needy.
Directors' Responsibility Statement
The Directors confirm that, in preparation of the Annual Accounts for
the year ended 31st March, 2019: the applicable accounting standards have been
followed along with proper explanation relating to material departures, if any, the
accounting policies framed in accordance with the guidelines of the Reserve Bank of India,
were consistently applied, reasonable and prudent judgment and estimates were made so as
to give true and fair view of the state of affairs of the Bank at the end of financial
year and of the profit and loss of the Bank , for the year ended on 31st March,
2019, proper and sufficient care was taken for the maintenance of adequate accounting
records in accordance with the provisions of applicable laws governing banks in India for
safeguarding the assets of the Bank and for preventing and detecting fraud and other
irregularities.
Internal financial controls were laid down and these were adequate and
operating effectively Proper systems were in place to ensure compliance of all laws
applicable to the Bank and these were adequate and operating effectively. The accounts
have been prepared on a going concern basis.
Acknowledgments
The Board of Directors expresses its gratitude to the Government of
India, Ministry of Finance, Department of Economic Affairs, Reserve Bank of India (RBI),
Securities and Exchanges Board of India (SEBI) and other Government & Regulatory
Agencies for their valuable guidance and continued support provided to the Bank throughout
the year. The Board of Directors are also grateful to the valued customers, esteemed
stakeholders and also wish to place on record its great appreciation of the staff members
for their involvement and dedication in the overall development, growth and prosperity of
the Bank.
|
For and on behalf of the Board of Directors |
| Place: Gurugram |
(Mukesh Kumar Jain) |
| Date: 13th May 2019 |
Managing Director & CEO |
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Oriental Bank of Commerce(Merged
Company Background
No Data Found
Oriental Bank of Commerce(Merged
Company Management
| Director Name | Director Designation | Year |
|---|
| Mukesh Kumar Jain | Managing Director & CEO | 2019 |
| Desh Deepak Khetrapal | Director(Shareholders) | 2019 |
| Ashok Kumar Sharma | Director(Shareholders) | 2019 |
| Ekta Pasricha | Company Secretary | 2019 |
| Madan Mohan Lal Verma | Director(Shareholders) | 2019 |
| Vijay Dube | Executive Director | 2019 |
| Balakrishna Alse S | Executive Director | 2019 |
| S M Narasimha Swamy | Nominee (RBI) | 2019 |
| Sindhu Pillai A | Nominee (Govt) | 2019 |
| Mala Srivastava | Director(PartTime NonOfficial) | 2019 |
Oriental Bank of Commerce(Merged
Listing Information
Oriental Bank of Commerce(Merged
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Interest/Discount on Adv/Bills | Rs. | 0 | 0 | 0 | 12081.4284 |
| Income on Investments | Rs. | 0 | 0 | 0 | 5349.731 |
| Others | Rs. | 0 | 0 | 0 | 387.9895 |
| Interest on bal with RBI | Rs. | 0 | 0 | 0 | 48.539 |