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Bank of Maharashtra

BSE Code : 532525 | NSE Symbol : MAHABANK | ISIN:INE457A01014| SECTOR : Banks |

NSE BSE
 
SMC down arrow

11.00

-0.05 (-0.45%) Volume 280564

30-Oct-2020 12:04:34

Prev. Close

11.05

Open Price

11.15

Bid Price (QTY)

11.00(44062)

Offer Price (QTY)

11.05(9891)

 

Today’s High/Low 11.15 - 11.00

52 wk High/Low 15.35 - 8.00

Key Stats

MARKET CAP (RS CR) 7255.54
P/E 17.02
BOOK VALUE (RS) 16.0862677
DIV (%) 0
MARKET LOT 1
EPS (TTM) 0.65
PRICE/BOOK 0.687542953173656
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 59.98
4

News & Announcements

26-Oct-2020

Bank of Maharashtra - Bank of Maharashtra - Other General Purpose

23-Oct-2020

Bank of Maharashtra - Compliance Certificate Under Regulation 7(3) Of The SEBI (LODR) Regulations, 2015 For The Half Year Ended 30.09.2020

23-Oct-2020

Bank of Maharashtra - Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018

22-Oct-2020

Bank of Maharashtra - Bank of Maharashtra - Updates

13-Oct-2020

Bank of Maharashtra to table results

08-Oct-2020

Bank of Maharashtra revises MCLR

08-Sep-2020

Bank of Maharashtra revises MCLR rates effective 7 September

26-Aug-2020

Bank of Maharashtra allots 73.60 lakh equity shares to GoI

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Allahabad Bank(Merged) 532480 ALBK
Andhra Bank(Merged) 532418 ANDHRABANK
Bank of Baroda 532134 BANKBARODA
Bank of India 532149 BANKINDIA
Canara Bank 532483 CANBK
Central Bank of India 532885 CENTRALBK
Corporation Bank(Merged) 532179 CORPBANK
Dena Bank(Merged) 532121 DENABANK
Indian Bank 532814 INDIANB
Indian Overseas Bank 532388 IOB
Oriental Bank of Commerce(Merged 500315 ORIENTBANK
Punjab & Sind Bank 533295 PSB
Punjab National Bank 532461 PNB
State Bank of Bikaner and Jaipur(Merged) 501061 SBBJ
State Bank of India 500112 SBIN
State Bank of Mysore(Merged) 532200 MYSOREBANK
State Bank of Travancore(Merged) 532191 SBT
Syndicate Bank(Merged) 532276 SYNDIBANK
UCO Bank 532505 UCOBANK
Union Bank of India 532477 UNIONBANK
United Bank of India(Merged) 533171 UNITEDBNK
Vijaya Bank(Merged) 532401 VIJAYABANK

Share Holding

Category No. of shares Percentage
Total Foreign 11015024 0.17
Total Institutions 230371761 3.51
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 6040378 0.09
Total Promoters 6122627927 93.33
Total Public & others 190103811 2.90
Total 6560158901 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Bank of Maharashtra

Bank of Maharashtra is a public sector bank in Maharashtra, which offers personal banking, cash management, retail loans and other financial services. Their services include deposits, savings/current bank account, vehicle loans, personal loans, retail trade finance, global banking, lending to priority sector and small scale sector, foreign exchange and export finance, corporate loans and equipment loans. As on 31 March 2019, the bank's total branch network comprised of 1,832 branches spread across all the States and 4 union territories. The branch network includes specialized branches in the area of Foreign Exchange, Government business, Treasury and International Banking, Industrial Finance, MSME and Hi-tech Agriculture, Pension Payment etc. The bank's ATM network stood at 1,858 as on 31 March 2019. The Bank has one subsidiary, namely The Maharashtra Executor & Trustee Company Pvt Ltd, which undertakes management of public/ private trusts and administration/ execution of Will. They also sponsored three Regional Rural Banks, namely Aurangabad Jalna Gramin Bank, Thane Gramin Bank and Marathwada Gramin Bank with head office at Aurangabad, Thane and Nanded respectively. Bank of Maharashtra was incorporated on September 16, 1935 and started their business on February 8, 1936. In April 10, 1946, The Maharashtra Executor & Trustee Company Pvt Ltd was incorporated as a wholly owned subsidiary of the Bank. In July 1969, Bank of Maharashtra was nationalized along with 13 other banks. After nationalization, the Bank expanded rapidly. In the year 1998, the Bank attainted the autonomous status, which helped the Bank in providing more and more services with simplified procedures without intervention of Government. In the year 2000, they incorporated Magic eMoney Ltd (MeM) a joint venture of Bank of Maharashtra, Dena Bank, NextStep Infotech P. Ltd. (NSIPL) and Magic Software Enterprises (MSE) Israel continued to undertake departmental projects. During the year 2003-04, the Bank came with their initial public offer of 10 crore shares of Rs 10/- each at a premium of Rs 13/- amounting to Rs 230 crore. The issue received overwhelming response and was over subscribed by more than 11 times. Also, they opened 34 new branches and upgraded 10 extension counters into full-fledged branches during the year. During the year 2004-05, the Bank opened 14 new branches, 2 extension counters and up-graded 1 extension counter into a full-fledged branch. Also, they opened Holiday Home at Shirdi in addition to 5 existing Holiday Homes at different places. The Bank acquired a stake of 9% in Global Trade Finance Pvt Ltd, a non-banking finance company promoted by the EXIM Bank. In January 2006, the Bank signed a MoU with Life Insurance Corporation of India, for distribution of their insurance products. Also, they launched a scheme of money transfer service for Non Resident Indians and other foreign account customers, using the Western Union Money Transfer Services provided by Western Union Financial Services Inc. For this regard, the Bank has entered into agreement with Weizmann Forex Ltd, the primary agent of Western Union Financial Services Inc. During the year 2006-07, the Bank opened 29 new branches and upgraded 16 extension counters into full-fledged branches. They expanded the ATM Network from 145 ATMs to 302 ATMs during the year and entered into collaboration with VISA for issuance of Debit cards. The Bank commissioned their own Data Center at Pune and Disaster Recovery (DR) site at Hyderabad. Also, they established six IT Labs at Delhi, Kolkata, Chennai, Hyderabad, Bangalore and Lucknow in order to take care of the massive training requirement for the CBS project. The Bank launched new schemes like Mahalaxmi Term Deposit Scheme (3 years term deposit scheme), Mahadeep Scheme (Financing of Solar Water Heating System), Insta Remit Scheme (RTGS scheme for instant fund transfer), etc during the year. In May 2006, they entered into tie up with United Insurance Company Ltd for distribution of their non-life insurance products. During the year 2007-08, the Bank also launched two group insurance schemes, namely Maha Suraksha Deposit Scheme for all types of deposit account holders and Maha Grih Suraksha for home loan borrowers. Also, they entered into distribution agreement with 15 select Asset Management Companies during the year. They opened 20 new branches upgraded 10-extension counters into full-fledged branches. They also opened 3 Currency Chests during the year. In March 2008, the two Regional Rural Banks, namely Aurangabad Jalna Gramin Bank and Thane Gramin Bank were amalgamated into one unit in the name of Maharashtra Godavari Gramin Bank with head office at Aurangabad and having area of operation in nine districts of Maharashtra. As at March 31, 2008, the total branch network comprised of 1,375 branches and three extensions counters spread over 22 states and two union territories. During the financial year ended 31 March 2010, Bank of Maharashtra crossed the milestone business level of Rs 1,00,000 crore. During the year, the bank set up currency futures desk at its dealing room and started proprietary trading in MCX-SX Exchange. Straight-through-Processing (STP) of Merchant Transactions was implemented in all 28 designated Fex Centres during the year. During the year under review, Bank of Maharashtra opened 33 new branches. The bank set up three retail credit hubs one each at Pune, Mumbai and Delhi to facilitate robust and qualitative growth in retail credit with special focus on housing loans. Five Asset Recovery branches were also set up one each at Pune, Mumbai, Nagpur, Kolkata and Aurangabad to provide greater thrust to the legal and administrative measures for recovery of NPAs. The year 2009-2010 was a landmark year in the chronicle of the bank as far as technology implementation and up scaling are concerned. The bank completed the process of networking of all the 1,453 branches and bringing them under Centralized Solution on 2 February 2010, thereby achieving 100% Core Banking Solution (CBS). During the year under review, the Mobile Banking product Maha Mobile was launched offering services like balance enquiry, view last three transactions, cheque status enquiry, request for cheque book / statement of accounts, change MPIN and intra bank fund transfer up to Rs.50,000 per day. During the financial year ended 31 March 2014, Bank of Maharashtra received equity share capital amounting to Rs. 800 crore (including share premium of Rs. 622.38 crore) from Government of India (GOI) through allotment of shares on preferential basis. With capital infusion, the share holding of GOI in equity share capital increased to 85.21% as on 31 March 2014. During the year, the bank opened 162 new branches, the largest number of branches opened by the bank in a financial year since inception. The year 2013-2014 was a milestone year for the bank as far as technology implementation and up scaling is concerned. During the year, bank expanded its ATM Network from 692 ATMs to 1827 ATMs, covering nearly all the 1890 branches of the bank. The implementation of banks own ATM Switch commenced during the year and was implemented live from 8 May 2014. Bank of Maharashtra has its own Corporate Network 'MAHANET' with all Branches, Zonal Offices, Training Colleges / Centers and Head Office interconnected and working under Core Banking Platform. Its robust & secure Network Technology Architecture ensures seamless services to the customers. During the year 2013-14, the process of migration of the network to highly reliable Multi Protocol Label Switching (MPLS)-VPN (Virtual Private Network) based architecture was completed. In July 2013, Bank of Maharashtra took a novel step by forming a new department by the name 'Department of Strategic Initiatives'. The project is named 'Utkarsha' and is a business transformation programme. The bank has engaged EY as consultants for the transformation. A team of 12 officers headed by an AGM is also formed to undertake this project. Time lines and the scope of work are defined and the expected time for the project completion is 18 months. The objective of Utkarsha is to draw a strategic roadmap and align bank's operating model to emerge as a more competitive, agile and efficient player. Project 'Utkarsha' encompasses six core elements namely Branch Transformation, Centralization and Business Process Re-engineering, Sales Enablement for retail and SME loans, Alternate Channels, Human Capital and Capital Efficiency. With a view to meet the credit requirement of its customers, Bank of Maharashtra launched a new retail loan product 'Mahabank Gold Loan Scheme' with effect from 26 September 2014. In January 2015, Bank of Maharashtra launched New Gen Mobile Banking Application Maha Mobile'. During the financial year ended 31 Mach 2016, Bank of Maharashtra set up Central Processing Cells at all the 33 zones. The centralized processing is expected to improve quality of appraisal and reduce undue delays in credit delivery mechanism. In addition to GRAS (Govt. Receipts Accounting System- e-payment of taxes) through all its branches in the state of Maharashtra, the bank introduced e-SBTR (electronic Secured Bank & Treasury Receipts). In order to extend additional credit support to its standard housing loan borrowers, Bank of Maharashtra launched 'Mahabank Top Up loan Scheme' with effect from 26 February 2016. Under this scheme credit is extended for repair / renovation / furnishing of house, children's education, Marriage of Children, Medical treatment, buying a vehicle or hi-tech gadgets etc. During the year under review, Bank of Maharashtra issued 10,51,50,787 equity shares amounting to Rs 394 crore (including share premium) to Government of India (GoI) on preferential allotment basis. Consequent upon the capital raised during the year, as above, the share holding of GOI in equity share capital stood at 81.61%. During the year, Bank of Maharashtra opened 15 new branches. CBS Hardware Augmentation Project covering DC & DR was undertaken & successfully completed during the year to take care of increasing transactions load and to ensure smooth functioning of CBS system at field level. E-Gadgets implemented in a big way during the year with commissioning of Self Update Pass Book Printers, Queue Management Solution & Bunch Note Acceptor Machines at various locations across the bank. During the financial year ended 31 Mach 2017, Bank of Maharashtra introduced One Time Settlement (OTS) Schemes viz. 'Mahabank Rahat Yoiana' for NPAs with Ledger Balance up to Rs.25.00 lakhs. During the year 2016-17 another special Suo Motu OTS Scheme (Viz. 'Mahabank Karimukti Yoiana') was introduced for recovery in Regular Written Off (RWO) a/cs up to Rs 25 lakhs. The bank added two new partners namely M/s Future Generali (Non-Life Insurance Company) and M/s Cigna TTK (Standalone Health Insurance Company) under Bancassurance in the month of February 2017. During the March 2017 quarter, Government of India vide its letter dated 16 March 2017 infused Rs 300.00 crore by way of preferential allotment of equity shares and the amount was maintained under Share application money pending for allotment, till the allotment of equity shares done. However, RBI has allowed treating share application money pending for allotment as CET1 capital for computation of CRAR. The bank successfully initiated/launched various Major IT Projects during 2016-2017. During the Year 2016-17, upgrade of Contact Center Operations including Integrated Voice Response System (IVRS) was successfully done & system is made operational. The bank launched MahaUPI', its UPI mobile application from 26 August 2016. The bank started the Paper-less ATM-RePIN facility (Green PIN) for ATM Card through its ATM Machines. During the year under review, the bank launched New Internet Banking Portal for Retail Customers. Bank of Maharashtra was placed under Prompt Corrective Action (PCA) by RBI in June 2017, in view of its high net NPA. Bank therefore had prepared Monitorable Action Plan for FY 17-18 to improve its position. During the year under review, the bank introduced One Time Settlement (OTS) Schemes. 'Ghar Ghar Dastak Yojana' (GGDY) was introduced for Small NPA borrowers up to Rs 10 lakhs. MahaMukti - 2017-18 (A) and 'MahaMukti - 2017-18 (B)' schemes were introduced for NPAs having ledger balance above Rs 10 lakhs up to Rs 1 crore and ledger balance above Rs 1 crore up to Rs 25 crore respectively. The bank introduced a scheme for one time settlement of Specified NPA accounts under 'Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017' (CSMSSY-2017) for farmers in the State of Maharashtra as proposed by Government of Maharashtra. During FY 2017-18, the bank redeemed Basel II /Basel III Compliant Bonds for an amount of Rs 1925 crore by exercising call option. The bank undertook borrowing as part of its asset liability management. In 2017-18, the bank added two more partners in life insurance business i.e. M/s Aviva Life Insurance Company and M/s Reliance Nippon Life Insurance Company. The Government of India infused total additional capital of Rs 3173 crore Bank of Maharashtra in two tranches; Rs 650 crore on 29 December 2017 and Rs 2523 crore on 27 March 2018. As part of its endeavor to curtail its operating expenses, Bank of Maharashtra merged 51 branches during the year, which were in close vicinity of each other, ensuring that no discomfort was caused to the customers. The Year 2017-2018 was a Technology Upscaling year for the bank. CBS Contract has been renewed for a period of 5 years from 1 October 2017 to 30 September 2022 with revamped CBS Front-end and additional components viz. Automated Testing, Batch Job Automation, On-line Training for staffs, Revenue Leakage Monitoring etc. During the year under review, the bank tied up with BSNL for upgrading the Bandwidth of the existing Leased Lines to 2 Mbps. During the FY 2018-19, Bank has redeemed Basel II /Basel III Compliant Bonds for an amount Rs 200 crore on the redemption date. Bank undertook borrowing as part of its asset liability management. Bank also entered into strategic tie-ups with Tractor Manufacturers, Micro Irrigation Companies, Farm Pond Construction Company for promoting farm mechanization, micro irrigation activities and also with Govt. of Maharashtra under POCRA / SMART Project for financing to FPO during the year 2018-19. The Bank has entered into an Agreement for Credit Guarantee with Small Farmers Agri-Business Consortium (SFAC) for financing to Farmer Producer Organizations (FPOs).

Bank of Maharashtra Chairman Speech

Dear Shareholders,

I extend a very warm welcome to each one of you to the 17th Annual General Meeting of your Bank. In July 2019, the Union Budget 201920 articulated the vision of the Hon'ble PM to make India a US$ 5 trillion economy by 2024-25. The march towards this milestone has, been challenged by less than expected growth of India's GDP till now, on the back of a decline in world output. The economy suffered a slowdown in GDP growth which fell from 7% in FY2018 & 6.1% in FY 2019 and further to 4.2% in FY2020, due to falling consumption, investment and exports. During the last few weeks of March 2020 the impact of COVID-19 started coming in, which now imposes a deep and extensive negative shock to the global economy as the wide- ranging containment measures enacted around the world constrained both supply and demand.

With weak economic growth and falling consumption, the Government in 2019 took many important reforms which included speeding up the insolvency resolution process under Insolvency and Bankruptcy Code (IBC), launching external benchmark linked loan products, relaxation of ECB guidelines for home buyers, easing of credit, particularly for the stressed real estate, NBFC sectors and announcing the National Infrastructure Pipeline amongst others. Fiscal stimulus equal to (~0.5% of GDP) was provided by lowering corporate tax rates. In an attempt to boost demand, the year also witnessed significant easing of monetary policy with the repo rate cuts by RBI by total of 135 bps from February to October 2019. In March 2020, given the extension of the COVID-19 outbreak, RBI further reduced the repo rate by 75 bps to 4.40%.

Performance of your Bank

As the consequences of the Covid-19 pandemic on the economy and financial sector are still unfolding, I am happy to share that your bank is continuing to successfully navigate in these turbulent times amidst a rapidly changing environment. Despite a challenging year, the Bank stood firm in supporting its customers which further provided opportunity to understand customers' plight. Amidst the pandemic, our focus was and remains the safety of our employees, uninterrupted delivery of services to our customers and the financial well-being of the bank. Against this backdrop, your bank delivered competitive, profitable and responsible growth in FY20. Here are some key data:

• Total Business of your bank increased to ' 2,44,955 crore as on 31.03.2020, showing an annual growth of 4.63%.

• Total Deposits increased to Rs.1,50,066 crore as on 31.03.2020, showing an annual growth of 6.69%.

• Your bank recorded a Net Profit of Rs.389 crore for the year as against loss of Rs.4,784 crore on y-o-y basis.

• Gross NPA & Net NPA reduced to 12.81% & 4.77% as on 31.03.2020 from 16.40% & 5.52% on y-o-y basis respectively.

• Capital Adequacy Ratio and CET-1 of the bank stood at 13.52% & 10.67% respectively as on 31.03.2020 which is above the regulatory requirement.

• Your Bank made a strategic decision to rebalance its advances portfolio and accordingly Retail, Agriculture and MSME (RAM) sector showed an improvement to 57.29% as on 31.03.2020 from 50.98% as on 31.03.2019.

During the year, your Bank had taken new business initiatives as under:

• Introduced new schemes-Maha Contractor Scheme, Maha Hospitality Scheme and ‘Standby Line of Credit for MSmE (SLC-MSME)

• Introduced Standby line of credit for working capital (SLC-WC) to give additional comfort to the existing MSME borrower in regard to liquidity easing.

• Under Contactless Cards, the bank launched National Common Mobility Card (NCMC)

• In the Internet banking, additional 13 services and 42 functionalities were added for more customer ease and convenience.

• Introduced Repo Linked Lending Rate Housing Loan(RLLR) (Special Scheme) & New Salary Saving Account Product

Way forward

We are entering the new financial year at a time when all major economies have been brought to a standstill. The impact of the Covid-19 pandemic has been fast and widespread, and the next few months will be challenging for everyone, individuals and organizations. As per the IMF, the pandemic is now expected to weaken global economic activity substantially in 2020 with the global economy projected to contract by 4.9% in 2020, much worse than during the 2008-09 global financial crisis. On the other hand, the economic downturn is not due to any structural problem in the economy, but due to an externality that has hit the pause button on the economic activity.

I am quite confident that whenever that externality is removed, an equally quick economic recovery will follow. Amidst these challenging times, we will continue to stay close to our customers, align ourselves to their evolving priorities and launch newer offerings that address current imperatives.

With all these strengths, I believe our business will only get better through the months ahead and we will be better positioned than ever to help our customers to lead in the new normal. As we navigate these uncertain times together with our customers, I look forward to your continued support.

A.S. Rajeev

Managing Director & CEO

   

Bank of Maharashtra Company History

Bank of Maharashtra is a public sector bank in Maharashtra, which offers personal banking, cash management, retail loans and other financial services. Their services include deposits, savings/current bank account, vehicle loans, personal loans, retail trade finance, global banking, lending to priority sector and small scale sector, foreign exchange and export finance, corporate loans and equipment loans. As on 31 March 2019, the bank's total branch network comprised of 1,832 branches spread across all the States and 4 union territories. The branch network includes specialized branches in the area of Foreign Exchange, Government business, Treasury and International Banking, Industrial Finance, MSME and Hi-tech Agriculture, Pension Payment etc. The bank's ATM network stood at 1,858 as on 31 March 2019. The Bank has one subsidiary, namely The Maharashtra Executor & Trustee Company Pvt Ltd, which undertakes management of public/ private trusts and administration/ execution of Will. They also sponsored three Regional Rural Banks, namely Aurangabad Jalna Gramin Bank, Thane Gramin Bank and Marathwada Gramin Bank with head office at Aurangabad, Thane and Nanded respectively. Bank of Maharashtra was incorporated on September 16, 1935 and started their business on February 8, 1936. In April 10, 1946, The Maharashtra Executor & Trustee Company Pvt Ltd was incorporated as a wholly owned subsidiary of the Bank. In July 1969, Bank of Maharashtra was nationalized along with 13 other banks. After nationalization, the Bank expanded rapidly. In the year 1998, the Bank attainted the autonomous status, which helped the Bank in providing more and more services with simplified procedures without intervention of Government. In the year 2000, they incorporated Magic eMoney Ltd (MeM) a joint venture of Bank of Maharashtra, Dena Bank, NextStep Infotech P. Ltd. (NSIPL) and Magic Software Enterprises (MSE) Israel continued to undertake departmental projects. During the year 2003-04, the Bank came with their initial public offer of 10 crore shares of Rs 10/- each at a premium of Rs 13/- amounting to Rs 230 crore. The issue received overwhelming response and was over subscribed by more than 11 times. Also, they opened 34 new branches and upgraded 10 extension counters into full-fledged branches during the year. During the year 2004-05, the Bank opened 14 new branches, 2 extension counters and up-graded 1 extension counter into a full-fledged branch. Also, they opened Holiday Home at Shirdi in addition to 5 existing Holiday Homes at different places. The Bank acquired a stake of 9% in Global Trade Finance Pvt Ltd, a non-banking finance company promoted by the EXIM Bank. In January 2006, the Bank signed a MoU with Life Insurance Corporation of India, for distribution of their insurance products. Also, they launched a scheme of money transfer service for Non Resident Indians and other foreign account customers, using the Western Union Money Transfer Services provided by Western Union Financial Services Inc. For this regard, the Bank has entered into agreement with Weizmann Forex Ltd, the primary agent of Western Union Financial Services Inc. During the year 2006-07, the Bank opened 29 new branches and upgraded 16 extension counters into full-fledged branches. They expanded the ATM Network from 145 ATMs to 302 ATMs during the year and entered into collaboration with VISA for issuance of Debit cards. The Bank commissioned their own Data Center at Pune and Disaster Recovery (DR) site at Hyderabad. Also, they established six IT Labs at Delhi, Kolkata, Chennai, Hyderabad, Bangalore and Lucknow in order to take care of the massive training requirement for the CBS project. The Bank launched new schemes like Mahalaxmi Term Deposit Scheme (3 years term deposit scheme), Mahadeep Scheme (Financing of Solar Water Heating System), Insta Remit Scheme (RTGS scheme for instant fund transfer), etc during the year. In May 2006, they entered into tie up with United Insurance Company Ltd for distribution of their non-life insurance products. During the year 2007-08, the Bank also launched two group insurance schemes, namely Maha Suraksha Deposit Scheme for all types of deposit account holders and Maha Grih Suraksha for home loan borrowers. Also, they entered into distribution agreement with 15 select Asset Management Companies during the year. They opened 20 new branches upgraded 10-extension counters into full-fledged branches. They also opened 3 Currency Chests during the year. In March 2008, the two Regional Rural Banks, namely Aurangabad Jalna Gramin Bank and Thane Gramin Bank were amalgamated into one unit in the name of Maharashtra Godavari Gramin Bank with head office at Aurangabad and having area of operation in nine districts of Maharashtra. As at March 31, 2008, the total branch network comprised of 1,375 branches and three extensions counters spread over 22 states and two union territories. During the financial year ended 31 March 2010, Bank of Maharashtra crossed the milestone business level of Rs 1,00,000 crore. During the year, the bank set up currency futures desk at its dealing room and started proprietary trading in MCX-SX Exchange. Straight-through-Processing (STP) of Merchant Transactions was implemented in all 28 designated Fex Centres during the year. During the year under review, Bank of Maharashtra opened 33 new branches. The bank set up three retail credit hubs one each at Pune, Mumbai and Delhi to facilitate robust and qualitative growth in retail credit with special focus on housing loans. Five Asset Recovery branches were also set up one each at Pune, Mumbai, Nagpur, Kolkata and Aurangabad to provide greater thrust to the legal and administrative measures for recovery of NPAs. The year 2009-2010 was a landmark year in the chronicle of the bank as far as technology implementation and up scaling are concerned. The bank completed the process of networking of all the 1,453 branches and bringing them under Centralized Solution on 2 February 2010, thereby achieving 100% Core Banking Solution (CBS). During the year under review, the Mobile Banking product Maha Mobile was launched offering services like balance enquiry, view last three transactions, cheque status enquiry, request for cheque book / statement of accounts, change MPIN and intra bank fund transfer up to Rs.50,000 per day. During the financial year ended 31 March 2014, Bank of Maharashtra received equity share capital amounting to Rs. 800 crore (including share premium of Rs. 622.38 crore) from Government of India (GOI) through allotment of shares on preferential basis. With capital infusion, the share holding of GOI in equity share capital increased to 85.21% as on 31 March 2014. During the year, the bank opened 162 new branches, the largest number of branches opened by the bank in a financial year since inception. The year 2013-2014 was a milestone year for the bank as far as technology implementation and up scaling is concerned. During the year, bank expanded its ATM Network from 692 ATMs to 1827 ATMs, covering nearly all the 1890 branches of the bank. The implementation of banks own ATM Switch commenced during the year and was implemented live from 8 May 2014. Bank of Maharashtra has its own Corporate Network 'MAHANET' with all Branches, Zonal Offices, Training Colleges / Centers and Head Office interconnected and working under Core Banking Platform. Its robust & secure Network Technology Architecture ensures seamless services to the customers. During the year 2013-14, the process of migration of the network to highly reliable Multi Protocol Label Switching (MPLS)-VPN (Virtual Private Network) based architecture was completed. In July 2013, Bank of Maharashtra took a novel step by forming a new department by the name 'Department of Strategic Initiatives'. The project is named 'Utkarsha' and is a business transformation programme. The bank has engaged EY as consultants for the transformation. A team of 12 officers headed by an AGM is also formed to undertake this project. Time lines and the scope of work are defined and the expected time for the project completion is 18 months. The objective of Utkarsha is to draw a strategic roadmap and align bank's operating model to emerge as a more competitive, agile and efficient player. Project 'Utkarsha' encompasses six core elements namely Branch Transformation, Centralization and Business Process Re-engineering, Sales Enablement for retail and SME loans, Alternate Channels, Human Capital and Capital Efficiency. With a view to meet the credit requirement of its customers, Bank of Maharashtra launched a new retail loan product 'Mahabank Gold Loan Scheme' with effect from 26 September 2014. In January 2015, Bank of Maharashtra launched New Gen Mobile Banking Application Maha Mobile'. During the financial year ended 31 Mach 2016, Bank of Maharashtra set up Central Processing Cells at all the 33 zones. The centralized processing is expected to improve quality of appraisal and reduce undue delays in credit delivery mechanism. In addition to GRAS (Govt. Receipts Accounting System- e-payment of taxes) through all its branches in the state of Maharashtra, the bank introduced e-SBTR (electronic Secured Bank & Treasury Receipts). In order to extend additional credit support to its standard housing loan borrowers, Bank of Maharashtra launched 'Mahabank Top Up loan Scheme' with effect from 26 February 2016. Under this scheme credit is extended for repair / renovation / furnishing of house, children's education, Marriage of Children, Medical treatment, buying a vehicle or hi-tech gadgets etc. During the year under review, Bank of Maharashtra issued 10,51,50,787 equity shares amounting to Rs 394 crore (including share premium) to Government of India (GoI) on preferential allotment basis. Consequent upon the capital raised during the year, as above, the share holding of GOI in equity share capital stood at 81.61%. During the year, Bank of Maharashtra opened 15 new branches. CBS Hardware Augmentation Project covering DC & DR was undertaken & successfully completed during the year to take care of increasing transactions load and to ensure smooth functioning of CBS system at field level. E-Gadgets implemented in a big way during the year with commissioning of Self Update Pass Book Printers, Queue Management Solution & Bunch Note Acceptor Machines at various locations across the bank. During the financial year ended 31 Mach 2017, Bank of Maharashtra introduced One Time Settlement (OTS) Schemes viz. 'Mahabank Rahat Yoiana' for NPAs with Ledger Balance up to Rs.25.00 lakhs. During the year 2016-17 another special Suo Motu OTS Scheme (Viz. 'Mahabank Karimukti Yoiana') was introduced for recovery in Regular Written Off (RWO) a/cs up to Rs 25 lakhs. The bank added two new partners namely M/s Future Generali (Non-Life Insurance Company) and M/s Cigna TTK (Standalone Health Insurance Company) under Bancassurance in the month of February 2017. During the March 2017 quarter, Government of India vide its letter dated 16 March 2017 infused Rs 300.00 crore by way of preferential allotment of equity shares and the amount was maintained under Share application money pending for allotment, till the allotment of equity shares done. However, RBI has allowed treating share application money pending for allotment as CET1 capital for computation of CRAR. The bank successfully initiated/launched various Major IT Projects during 2016-2017. During the Year 2016-17, upgrade of Contact Center Operations including Integrated Voice Response System (IVRS) was successfully done & system is made operational. The bank launched MahaUPI', its UPI mobile application from 26 August 2016. The bank started the Paper-less ATM-RePIN facility (Green PIN) for ATM Card through its ATM Machines. During the year under review, the bank launched New Internet Banking Portal for Retail Customers. Bank of Maharashtra was placed under Prompt Corrective Action (PCA) by RBI in June 2017, in view of its high net NPA. Bank therefore had prepared Monitorable Action Plan for FY 17-18 to improve its position. During the year under review, the bank introduced One Time Settlement (OTS) Schemes. 'Ghar Ghar Dastak Yojana' (GGDY) was introduced for Small NPA borrowers up to Rs 10 lakhs. MahaMukti - 2017-18 (A) and 'MahaMukti - 2017-18 (B)' schemes were introduced for NPAs having ledger balance above Rs 10 lakhs up to Rs 1 crore and ledger balance above Rs 1 crore up to Rs 25 crore respectively. The bank introduced a scheme for one time settlement of Specified NPA accounts under 'Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017' (CSMSSY-2017) for farmers in the State of Maharashtra as proposed by Government of Maharashtra. During FY 2017-18, the bank redeemed Basel II /Basel III Compliant Bonds for an amount of Rs 1925 crore by exercising call option. The bank undertook borrowing as part of its asset liability management. In 2017-18, the bank added two more partners in life insurance business i.e. M/s Aviva Life Insurance Company and M/s Reliance Nippon Life Insurance Company. The Government of India infused total additional capital of Rs 3173 crore Bank of Maharashtra in two tranches; Rs 650 crore on 29 December 2017 and Rs 2523 crore on 27 March 2018. As part of its endeavor to curtail its operating expenses, Bank of Maharashtra merged 51 branches during the year, which were in close vicinity of each other, ensuring that no discomfort was caused to the customers. The Year 2017-2018 was a Technology Upscaling year for the bank. CBS Contract has been renewed for a period of 5 years from 1 October 2017 to 30 September 2022 with revamped CBS Front-end and additional components viz. Automated Testing, Batch Job Automation, On-line Training for staffs, Revenue Leakage Monitoring etc. During the year under review, the bank tied up with BSNL for upgrading the Bandwidth of the existing Leased Lines to 2 Mbps. During the FY 2018-19, Bank has redeemed Basel II /Basel III Compliant Bonds for an amount Rs 200 crore on the redemption date. Bank undertook borrowing as part of its asset liability management. Bank also entered into strategic tie-ups with Tractor Manufacturers, Micro Irrigation Companies, Farm Pond Construction Company for promoting farm mechanization, micro irrigation activities and also with Govt. of Maharashtra under POCRA / SMART Project for financing to FPO during the year 2018-19. The Bank has entered into an Agreement for Credit Guarantee with Small Farmers Agri-Business Consortium (SFAC) for financing to Farmer Producer Organizations (FPOs).

Bank of Maharashtra Directors Reports

Your Directors' have pleasure in presenting the Annual Report of the Bank with the audited Balance Sheet, Profit & Loss Account and the Report on Business and Operations for the year ended March 31, 2020.

1. MANAGEMENT DISCUSSION AND ANALYSIS:

1.1 Economic and Banking Scenario 2019-20

The financial year 2019-20 was a difficult year for the global economy with world output growth growing at its slowest pace of 2.9% since the global financial crisis of 2009. With the onset of the COVID-19 outbreak in early January 2020, the situation worsened. Due to falling consumption, investment & exports, the economy suffered a slowdown in growth, wherein GDP growth fell from 7% in FY2018 & 6.1% in FY2019 to 4.2% in FY20. The fall in growth was sharp in industrial sector which fell to 0.9% y-o-y from 4.9%; moderation in services sector (growing at 5.5% compared to 7.7% in the previous year), which was offset by an uptick in the growth of agriculture sector (growing at 4% against 2.4% in the previous year) due to healthy precipitation.

With weak economic growth, falling consumption & tax collection, the Government took important reforms measures to boost investment and consumption. However, the outbreak of Covid-19 in India and consequent nation-wide lockdown dampened the momentum. Bank credit growth in the year ended up at a much lower rate than was expected.

1.2 Outlook for 2020-21

To counter the impact of COVID-19, the Government of India unveiled a stimulus package worth INR 20-lakh-crore (~10% of GDP) with a focus on MSMEs, migrant workers, farmers, urban poor and NBFCs. While providing adequate liquidity to the financial system the Reserve Bank of India also reduced the policy repo rate by 175 basis points since February 2020.

Economic activities in the first couple of FY21 was in a standstill due to the nationwide lockdown imposed. Consequently, while there is a widespread expectation for full year output to contract from the previous year, economic growth is estimated to pickup in Q3 & Q4 of FY21 assuming that the pandemic dissipates in the second half of the year.

2. PERFORMANCE HIGHLIGHTS 2019-20:

1. Total Business of your Bank stood at Rs.2,44,955 crore as on 31.03.2020 as against Rs.2,34,117 crore as on 31.03.2019, showing an annual growth of 4.63%.

2. Total deposits stood at Rs.1,50,066 crore as compared to Rs.1,40,650 crore last year, showing an annual growth of 6.69%

3. CASA deposits increased to Rs.75,475 crore as on 31.03.2020 from Rs.69,830 crore as on 31.03.2019, registering a growth of 8.08%. Share of CASA to total deposits stood at Rs.50.29% as on 31.03.2020.

4. Gross advances of the Bank stood at Rs.94,889 crore as on 31.03.2020 in comparison to Rs.93,467 crore as on 31.03.2019.

5. Operating Profit stood at Rs.2,847 Crore for the year ended 31.03.2020 as against Rs.2,198 crore for the year ended 31.03.2019.

6. Business per Employee increased to Rs.19.55 crore as on 31.03.2020 as against Rs.18.13 crore as on 31.03.2019. Corresponding figures for Business per Branch stood at Rs.133.64 crore and Rs.127.79 crore respectively.

2.1 Sectoral Deployment of Credit

Percentage to total O/s O/s as on 31.03.2020 (in Rs.Crore) Percentage to total O/s O/s as on 31.03.2019 (in Rs.Crore) Percentage to total O/s
Industry Of which 30,113.57 31.74% 36,491.52 39.04%
i. Infrastructure 7,370.82 7.77% 8,844.99 9.46%
ii. Chemicals, Dyes, Paints etc 1,430.69 1.59% 2,219.63 2.37%
iii. Petroleum 688.76 0.73% 365.33 0.39%
iv. Iron and Steel 1,609.59 1.70% 1,844.24 1.97%
v. NBFCs and Trading 10,759.03 11.43% 10,672.69 11.42%
vi. Engineering 2,336.55 2.46% 2,942.93 3.15%
vii. Construction 1.78 0.00% 5.21 0.01%
viii. Other Industries 5,916.35 17.67% 9596.5 10.27%
Agriculture 14,384.66 15.16% 1,5220.3 16.28%
MSME 17,163.92 18.09% 1,4664.42 1.46%
Housing 14915.71 65.39% 1,2052.1 12.89%
Education 1227.70 5.38% 1,086.53 1.16%
Exports 1,167.11 1.23% 1,200.04 1.28%
Commercial Real estate 1,611.34 1.70% 2,324.14 2.49%
Gross Advances 94,888.98 xxx 93466 xxx

2.2 Quality and NPA Management

• The Bank has set up "Asset Recovery Cells (ARC)" at all zonal offices to ensure focused efforts for upgradation and NPA recovery.

• Twelve Asset Recovery Branches (ARBs) have also been set up across the Bank's Zones for large NPA accounts, more particularly where legal actions are in progress and where the bank requires a more focused follow up approach.

• Further, the Bank established Stressed Assets Management Vertical by way of a separate department at Head Office under which Bank started 4 (four) Stressed Assets Management (SAM) branches in Delhi, Mumbai, Hyderabad and Pune, where NPAs with balance of Rs.5 crore and above are being monitored.

• The Loan Tracking Cell has been established where Bank undertakes telephonic follow up on daily basis with borrowers of stressed accounts/slippages and repayment of over dues is insisted. It is expected that this will result in improving recovery and upgradation of NPAs. The Bank has also set up separate Cells at its Head Office for identification of Wilful Defaulters and gearing up actions under DRT/SARFAESI Acts.

• The Bank has been implementing suo-motu nondiscriminatory and non-discretionary One Time Settlement (OTS) Schemes. Monitoring of the performance under the schemes is undertaken by the Recovery Department, Head Office on daily basis. During 2019-20 the Bank introduced following such OTS schemes:

a. Mahabank Ghar Ghar Dastak Yojana (GGDY) 2019-20: Mahabank GGDY 2019-20 was introduced for Small NPA borrowers up to Rs.25 lakhs under Doubtful & Loss/TWO categories.

b. Maha-Riyayat Yojana 2019-20 (MRY): Maha- Riyayat Yojana 2019-20 (MRY) was introduced for NPAs in Doubtful and Loss categories with Ledger Balance above of Rs.25 lakhs and up to Rs.50 crore.

Bank has also made intensive follow up with the defaulting borrowers through visits, letters, notices, Recovery Camps, Lok Adalats, Mahabank Adalats, actions under SARFAESI/DRT Act. Services of Recovery Agents/Resolution Agents are engaged so as to have an early resolution. The Bank has also initiated action under the provisions of the Insolvency & Bankruptcy Code 2016 against various large NPA borrowers. The position of Non-Performing Assets is as under:

2.3 Foreign Exchange Business

Currently, the bank has 36 B Category branches across the country catering to the International business needs of the customers of the Bank apart from TIBB at Mumbai as "A" category branch. The Merchant Business for FY 2019-20 stood at Rs.35,127.77 crore. The performance during the year 2019-20 can be seen below:

(Rs. in Crore)
Particulars 2019-20 2018-19 Percentage of (+/-)
Total FEX Business Turnover 5,68,236.68 8,12,351.14 -30.05%
Merchant Business Turnover 35,127.77 37,311.51 -5.85%
Profit in FEX Business 166.07 132.39 25.44%

2.4 Investment

The breakup of Investments into SLR & Non-SLR investments is given below:

• Gross Investments as on 31.03.2020 stood at Rs.58,171.34 crore, of which Rs.36, 632.88 crore were into SLR securities and Rs.21,538.46 crore into Non-SLR Securities. The excess SLR securities as on 31.03.2020 stood at Rs.9,445.23 crore.

• The net investments (net of provisions) stood at Rs.57,740.85 crore as on 31.03.2020 as compared to Rs.59,697.05 crore as on 31.03.2019. Investments under Held to Maturity (HTM) category consist of 65.40%, while Available for Sale (AFS) comprised of 34.59% of total investment portfolio as of 31.03.2020. The net interest income from investment activity increased to Rs.4,203.89 crore from Rs.3,689.61 crore during the last year (growth of 13.94%).

• The Non-Performing Investments stood at Rs.389.15 crore as on 31.03.2020.

2.5 Merchant Banking

The Bank handled 63 issues (previous year 52 issues) of Commercial paper amounting to Rs.22,220 crore (previous year Rs.8,360 crore) for its clients as an Issuing and Paying Agent (IPA) during the year.

2.6 Borrowings

The borrowing of the Bank as on 31st March 2020 stood at 3,766.89 crore including re-finance as under:

(Rs. in Crore)
Particular Amount as at 31.03.2020 Amount as at 31.03.2019
Total Borrowing 3,766.89 10,149.17
of which Borrowing RBI under 478.00 1500.00
LAF

 

Particular Amount as at 31.03.2020 Amount as at 31.03.2019
of which Borrowing Market REPO 0 2003.63
Of which Borrowing TRePS (G-Sec) 0 3277.48
Of which Refinance from
NABARD 0 140.00
EXIM BANK 0 0.00
NHB 0 92.62
MUDRA 0 0.00
SIDBI 87.75 0.00
Borrowings in the form of Bonds & debentures capital instruments 3,100.00 3,100.00
Borrowings outside India 103.09 35.39
Others 0.05 0.05

During the FY 2019-20, the Bank redeemed Basel II /Basel III Compliant Bonds for an amount Rs.600 crore on the redemption date. The bank undertook borrowing as part of its asset liability management.

2.7 Depository Services

• The bank is Depository Participant (DP) of Central Depository Services of India Ltd. (CDSL) since September 1999.

• The bank has also introduced Basic Services DEMAT Account Facility (BSDA) & ASBA through net-banking and UPI.

2.8 Bancassurance

The bank is a corporate agent for carrying out Bancassurance business under all three segments i.e. Life Insurance, General Insurance and Health Insurance. The performance during the year 2019-20 can be seen below:

2.9 Government Business

During the year 2019-20, 6,05,256 challans of Direct Taxes and 40,446 challans of Indirect taxes were collected by the branches. Total commission to the tune of Rs.4.54 crore was received on tax collection business from Central/State Government's and other business. As a service to senior citizens, the Bank is processing and crediting monthly pension payments of more than 1,11,653 Central Government, Defense, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2019-20 stood Rs.13.05 Cr.

2.10 Income, Expenditure and Profitability

The total income of the Bank stood at Rs.13144.68 crore in FY 2019-20 as compared to Rs.12,397.06 crore in FY 2018-19. The detailed income/expenditure components are as under:

(Rs. in Crore)
Particulars 2019-20 2018-19 Variation ( in %)
Interest/discount on advances/bills 6409.27 6,566.64 -2.40%
Income on investments 4202.69 3,689.61 13.91%
Interest on interbank lending & other Interest 883.49 593.35 48.90%
Total interest income 11495.45 10,849.60 5.95%

 

(Rs. in Crore)
Particulars 2019-20 2018-19 Variation ( in %)
Non-interest income 1649.23 1,547.46 6.58%
Total Income 13144.68 12,397.06 6.03%
Interest on deposits 6757.19 6,750.94 0.09%
Interest on borrowings 20.56 29.57 -30.47%
Other Interest expenditure 438.90 335.61 30.78%
Staff expenses 1743.82 1,794.17 -2.81%
Other Operating expenses 1337.15 1,289.16 3.72%
Total Non-interest expenses 3080.97 3,083.33 -0.08%
Total Expenses 10297.62 10,199.45 0.96%
Operating Profit 2847.06 2,197.61 29.55%
Provisions and Contingencies 2458.48 6,981.49 0.00%
Net Profit 388.58 -4,783.88 0.00%

2.11 Financial Ratios

The various financial parameters of the Bank during the year 2019-20 can be seen below:

Particulars 2019-20 2018-19
EPS (Rs.) 0.67 (14.26)
Cost to Income Ratio (percent) 51.97 58.39
Return on assets (percent) 0.23 (3.01)
Return on equity (per cent) 6.32 (207.99)
Book value per share ( Rs.) 11.99 10.24
Profit per Branch (' in lakh) 21.20 (261.13)
Profit per employee (' in lakh) 3.10 (37.05)
Business per Branch (Rs. in Crore) 133.64 127.79
Business per employee (Rs. in Crore) 19.55 18.13
Interest income as per cent to Average working funds 6.78 6.82
Non-Interest income as per cent to average working funds 0.97 0.97
Net Interest Margin (per cent)* 2.60 2.53
Operating Profit as per cent to average working Funds 1.68 1.38
Staff expenses as a percent to average working funds 1.03 1.13
Dividend (per cent) 0.00 0
Net worth (' Crore) 6985.74 5859.73
CRAR (%) (Basel II) 13.52 11.86
Of which, Tier I CRAR (%) (Basel II) 10.67 9.91

2.12 Capital

The Bank decided to raise capital of Rs.131.70 crore in April 2019 through Employee Share Purchase Scheme (ESPS) in compliance of SEBI (Share Based Employee Benefits) Regulations, 2014 by issuing and allotting 10,00,00,000 (Ten crore) equity shares of Rs.10/- each of Bank at '13.17 per equity share to its Whole Time Directors and Employees. The shares were offered at a discount of 20% on the floor price i.e. 13.17 per share.

Bank has allotted 297,09,37,912 Equity Shares of '10/- each of Bank to Government of India at issue price of Rs.15.14/- per share on 29th April, 2019 against a capital infusion of Rs.4498/- crore. The Government of India infused Equity capital of Rs.831/- crore in Bank on 20th April, 2020. The said money is kept in the Share application money pending allotment A/c till allotment formalities are completed. With the approval of RBI, said capital is used for computation of CET-1 Ratio as on 31.03.2020. Further, the Bank also raised Tier - II capital of Rs.600 crore by issue of BASEL III Tier - II Bonds with coupon rate of 8.70% in March, 2020.

2.13 Net worth

The Bank's Net Worth stood at Rs.6,985.74 crore as on 31.03.2020 as against Rs.5,859.73 crore as on 31.03.2019.

2.14 Capital Adequacy Ratio

The Capital Adequacy ratio stood at 13.52 % as on 31.03.2020, against the minimum of 10.88 % (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio stood at 10.67 %.

3. RESOURCES: BRANCH NETWORK, HUMAN RESOURCES, IT INFRASTRUCTURE, CUSTOMERS RESPONSIVENESS AND OTHERS:

3 .1 Branch/ATM Network

As on 31.03.2020, the total branch network comprised of 1,833 branches spread across all the States and four union territories. The branch network includes specialized branches in the area of Foreign Exchange, Government Business, Treasury and International Banking, Industrial Finance, Small Scale Industry and Hi-tech agriculture, Pension Payment, Self Help Groups etc. Area wise classification of branches as on 31.03.2020 is given in the table below:

Sr. No. Classification As on 31.03.2020 As on 31.03.2019
1 Rural 616 615
2 Semi-Urban 428 426
3 Urban 331 325
4 Metro 458 466
Total 1833 1832

In FY 2019-20 the Bank merged one branch ensuring that no discomfort was caused to the customers and opened two new branches.

ATM Network

31.03.2020 31.03.2019
Offsite 544 552
Onsite 1307 1306
Total 1851 1858

3.2 Human Resources Management

The Bank has put in place comprehensive HRM Policies that provides the road map for acquiring appropriate & need based human resources, its development through training, job enrichment, reward and recognition for better performance, career progression, welfare and retention.

Recruitment: During the year 2019-20, the Bank recruited employees as under:

276 Officers in Scale I, 23 officers in Scale II, 7 Officers in Scale III & 2 Officers in Scale IV (this includes 35 CA, 3 Forex, 2 Economist, 1 Domestic Dealer, 9 Data Analyst, 4 Inf. System Auditor, 1 Information Security, 5 HR, 3 NET Admin, 4 Soft Programmer, 2 Soft Test, 1 Fire Engg, 5 Security Officers &1 DBA). The Bank also recruited 261 Clerks & 25 Sub-staff.

During the year, 984 employees exited from service on account of retirement, VRS, resignation, termination and death. Inter scale promotions of officers were carried out during 2019-20. Following number of candidates were promoted.

JMGS-I TO MMGS-II MMGS-II to MMGS III MMGS-III TO SMGS- IV SMGS- IV TO SMGS-V SMGS-V TO SMGS- VI SMGS-VI TO TEGS- VII
488 297 99 34 18 7

During the year 2019-20, 96 Clerks were promoted to Officer Cadre in Scale I & 47 Sub-staff were promoted to Clerical Cadre. The Cadre wise staff position as of 31.3.2020 with sex ratio percentage is mentioned below:

Category Male % Female % Total
Officers 4780 72.02 1857 27.98 6637
Clerks 2832 65.94 1463 34.06 4295
Sub-staff 1417 88.56 183 11.44 1600
Total 9029 72.05 3503 27.95 12532

The Bank has been complying with the reservation policy of Govt. of India. Special Cells at Head Office and all Zonal Offices are functioning to monitor the implementation of the reservation policies and to redress grievances of SC/ST/OBC & Physically challenged employees as well as ex-servicemen. The Bank has designated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all Zonal Offices.

Compassionate Appointments-

A Scheme for ‘Compassionate Appointments'/"Payment of Ex-gratia lumpsum amount" to/of heirs of employees dying in harness or retiring due to incapacitation framed as per the directives of Government of India, has been implemented. The details of compassionate appointments and payment of Ex-gratia lumpsum amount for the year 2019-20 is as under:

Compassionate Appointments

Payment of Exgratia

Cadre No. of employees No. of employees Amount paid
Clerk 07 Nil Nil
Sub-staff 07 01 6,00,000/-

The reimbursement of examination fees & payment of cash incentive/Honorarium in respect of courses from Indian Institute of Banking & Finance, MBA from reputed Institutions, FRM, BIRD, PRM, CFA etc. has been widened by adding courses in the list of courses for reimbursement of fees thereby making total 38 courses eligible for reimbursement of examination fees. A policy for granting special leave and 100% reimbursement of hospitalization expenses to officers when he/she meets with an accident/injury while on duty is in place.

Training Activities:

The Bank has a training system, which facilitates attention to regular periodic assessment of skill gaps at various levels in relation to existing and emerging business opportunities. Skill building in credit, Forex, customer relationship management, marketing of products and services, credit monitoring and recovery, risk management, technology based banking, branch management, complying with statutory, legal and policy requirements and preventive vigilance received special attention during the year. Special Leadership Development Program for General Managers & Dy. General Managers were also organized at IIM Kozhikode. E-learning platform was utilized for imparting training to 3600 Officers. Training programs were also held on thrust areas like financing MSMEs, retail lending, agriculture finance, soft skills and rural development.

Cadre-wise Break up of Employees trained during the period 1.4.2019 to 31.03.2020 are as under-

Cadre No. of Programmes Training Days Employees Trained
Officers 230 582 4494
Clerks 132 397 1840
S/staff 53 99 861
Total 415 1078 7195

3.3 Technology Initiatives

The Year 2019-2020 was a Technology Upscaling year for the Bank. The Bank had taken up major IT Projects and successfully initiated/up scaled the same which are enumerated as under:

MeitY-Digital Score Card:

Ministry of Electronics & Information Technology (MeitY) had set a target of 19.30 crore for digital transactions and 75,750 for merchant onboarding on various acquirer channels of Bank. Our bank achieved the digital transactions of 20.45 Crore and merchant on boarding of 1,06,971 for FY 201920. The MeitY monitors the progress of digital payment transactions, merchant acquisition, UPI and AePs system resilience on monthly basis and communicates the scores to Banks. Our Bank secured more than 70 score in 4 months and stood first among all PSU Banks consecutively for 3 months.

• The Bank implemented 807 Self Update Pass Book Printing Kiosks, 106 Bunch Note Acceptor Machines and 75 Cash Recyclers at various locations across the Bank. The same shall be continued to ensure fulfilment of customer requirements/ satisfaction.

• The Bank had a tied up with BSNL for upgrading the Bandwidth of the Leased Lines from 64-128 Kbps to 2 Mbps. As on 31.03.2020, bandwidth of 1,770 leased lines is upgraded to 2 Mbps. In order to make our systems more resilient, bandwidth is made available from Additional Network Service Providers including Airtel, Vodafone, Sify and TCL. So far 1,570 branches have dual service providers.

• National Common Mobility Card-The Bank partnered with NPCI for issuance of National Common Mobility Card (NCMC) using Near Field Communication. NCMC has features of both Online-Offline transactions and prepaid-wallet capabilities. Bank has so far issued 15,828 NCMC cards to customers.

• Bharat Bill Pay System (BBPS): BBPS is a one- stop ecosystem for payment of all bills providing an interoperable and accessible "Anytime Anywhere" bill payment service to all customers across India with certainty, reliability and safety of transactions. Bank is offering corporate bill payment solution to Pune Municipal Corporation (PMC) MSEDCL bill payments on BBPS at bill payment platform. BBPS service is also live on BC (Business Correspondent) channel.

• Digital Media Signage (DMS) Systems are electronic displays having central control for display of text, animated or video message and presentations for banks product advertisement/promotion and digital channel awareness. DMS is implemented in our Bank and running successfully across 1,820 branches.

• The ISO 27001: 2013 certification was achieved for our IT division covering HO-IT, DC, DR and CBS Project Office in August 2015. Bank is ensuring continued compliance & successfully completed the Surveillance Audit for the continuation of ISO 27001: 2013 Certification for the year 2019-20 as well.

• The first PCI DSS certificate was awarded towards compliance of Debit Card environment security to the Bank on 12.09.2014 and is continued till date.

• In order to provide better improved access and service quality to customers, DFS has introduced EASE (Enhanced Access and Service Excellence) agenda and reforms. The bank implemented additional 14 services & 42 features in Internet Banking application and 12 services and 40 features in Mobile banking application. The share of financial transactions through ‘Home & Mobile' based channels increased from 55% to 72%.

• The Bank is actively promoting BHIM Aadhaar Pay payment channel and 38,152 Merchants were on boarded as on 31.03.2020.

• Bank has implemented Public Financial Management System (PFMS) which is used by Government Agencies to make payments directly into the recipients Bank Account.

• The Bank issues Rupay and Visa debit cards in different variants such as Visa EMV, Rupay Classic, Rupay Platinum etc. to its customers. As per RBI guidelines, all the cards are EMV Chip based. The total card base of the bank increased from 52.50 lakh as on 31.03.2019 to 76.44 lakh as on 31.03.2020.

• Various facilities are being provided through our Internet Banking platform for facilitating online payment of taxes, utility bill payments, online shopping/e-commerce, railway reservation, LIC premium payment, e-SBTR etc. and facility for viewing tax credit statement 26AS and Demat account with the Bank.

• Bank has implemented Cyber Security operations Centre (CSOC) with state of the art technologies including,

a) Security Information and Event Management

(SIEM) solution

b) Anti-Advanced Persistent Threat (Anti-APT)

Solution for combatting advanced attacks.

c) File Integrity Monitoring (FIM) for detecting unauthorized changes to critical files on Servers

d) Privilege Identity Management Tool (PIM) a centralized portal-based console to access the privilege devices, servers and applications for all privilege users with two factor authentication for login.

e) Network Behavioral Anomaly Detection (NBAD) tool for detecting network anomalies.

f) Bank is also availing Anti-Phishing, Anti-Trojan and Anti- Rouge services to take care of phishing attacks.

• The Bank has initiated implementation of Loan Life Cycle Management software (LLMS) with Document Management System (DMS) and Early Warning Signals (EWS) solutions.

• CBS Front End version upgradation with enhanced features has been initiated for better user experience and resolving data integrity issues

• The Bank received IBA Banking Technology award for Best IT Risk Management and Cyber Security Initiatives under Medium Banks category.

• Digital Products Enhancement and Compliance

a) UPI 2.0: Our UPI platform is migrated to UPI 2.0 for more feature enhancements such as ASBA.

b) AePS 2.5: AePS system is migrated to AePS 2.5

c) Internet Banking & Mobile Banking:

Instant Fund Transfer - New feature of Instant Fund Transfer up to Rs.10,000 has been added in Internet Banking. Besides, it also introduced new feature of activating Internet Banking for all new saving accounts and also conducted various customer initiatives in order to improve digital banking service.

3.4 Customer Centric Initiatives taken by the Bank

• The Bank has pursued high standards of customer service to ensure customer satisfaction throughout the year by implementing all major recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee. As a member of Banking Codes and Standards Board of India (BCSBI), Bank has adopted Code of Bank's Commitment to Customer and Bank's Code of Commitment to MSMEs.

• The bank has printed folder called as "My Folder" containing all customer service policies, information on service charges, guidelines on Government Schematic Loans, Ombudsman and BCSBI Codes. The same is printed in Marathi, Hindi and English and supplied to all branches and Zones for making the same available to all customers on demand.

• Duly documented policies approved by the Board, on "Deposit", "Collection of Cheques", "Redressal of Grievances", "Compensation" , "Operational Procedure for Settlement of Claims of Deceased Depositors" and Customer Rights Policy are in place.

• Customer Service Committees are formed at all branches and their meetings are conducted regularly on monthly basis. The Standing Committee on Customer Service at Head Office and Zonal Level Customer Service Committees at Zones, meet regularly to address and review various customer related matters and to take steps, for an improvement, on an ongoing basis.

• The Committee of the Board on Customer Service meets on quarterly basis to monitor the quality of the customer service, redresses of customer grievances and to ensure customer satisfaction.

• Full-fledged grievances Redressal machinery is in place to respond promptly to customer grievances. The Bank has started internet based mechanism, Standardized Public Grievances Redressal System (SPGRS) for lodging the complaints or to give suggestions/feedback on services by the customers and for providing acknowledgement and status of their feedback/complaints as per the directions of Government of India.

Sr. No. Particulars 2018-19 2019-20
1 Customer complaints at the beginning of the year 388 145
2 Complaints received during the year 8395 8594
3 Complaints redressed during the year 8638 8443
4 Complaints pending at the end of the year 145 296

3.5 KYC/ AML

The Bank has Board approved KYC-AML-CFT Policy in place. The Policy is the foundation on which the Bank's implementation of KYC norms, AML standards and CFT measures are based. The full KYC compliance entails staff education as well as customer education for which the Bank takes various measure on a regular basis. A comprehensive list of KYC documents is uploaded on the Bank's web site for the benefit of customers. Regular training sessions are conducted on KYC-AML-CFT guidelines at the Bank's training establishments to sensitize the employees.

3.6 Risk Management

The Bank has put in place Risk Management Policies and Strategies to identify, measure, monitor and manage risk efficiently and establish control systems in line with the Bank's aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor the risk at Bank level in accordance with RBI Guidelines. The bank has also constituted sub-committees headed by Top Management of Bank.

3.7 Marketing & Publicity

Bank adopted integrated marketing strategy to promote Retail, Agri, MSME products and IT services. Marketing Team participated in various expos under Retail, Agri & MSME sector for increasing our presence and business mobilization. In FY 2019-20, Bank established it's presence across all mediums like TV, Radio, Print, OOH (out of home) etc. Bank associated with International cricket match between India and West-Indies, top shows like The Kapil Sharma Show and various others for increasing brand image and reach. Marketing team launched "We Lead" portal to inculcate sales attitude amongst staff members and motivate them to participate actively.

To capture the young generation customer base and disseminate information, Bank launched its social media handles (@mahabank) on Facebook, Twitter, LinkedIn, Pinterest, Instagram and YouTube (BankofMaharashtra). With digital/SMS campaigns, Bank has gradually increased its followers/ likes on social media pages. Bank's FB page also got verified status on 8th October 2019. A dedicated team is taking care of response management on social media handles. Bank's brand jingle and new corporate website was also launched during the year.

3.8 Citizen's Charter:

The Bank has adopted the Charter since 2000-01, which details the duties and responsibilities of the Bank towards its customers. The charter is displayed at all the branches and Bank's website. Some of important responsibility of Branches are;

• Meeting the demands for fresh/good quality notes and coins of all denominations.

• Exchanging soiled notes, and

• Accepting coins and notes either for transactions or exchange.

• Separate que for senior citizen

4. SOCIO/MICRO ECONOMIC DEVELOPMENT

4.1 Priority Sector Lending

It has been the constant endeavor of the Bank to facilitate equitable and sustainable economic development by timely and hassle-free availability of credit for productive purposes to Small and Marginal Farmers, Micro and Small Enterprises, Retail Traders, Professional and Self Employed, Women Entrepreneurs and entrepreneurs from economically weaker sections. The outstanding advances under Priority Sector (excluding investment) as of 31st March 2020, aggregated to Rs.38,900 crore constituting 39.34% of the total credit.

4.2 Agriculture

Bank disbursed loans of Rs.4,605 Crore for Agriculture and allied activities during the year 2019-20. The total outstanding advances to agriculture sector reached a level of Rs.14,385 Crore as on 31.03.2020. The Bank also achieved all mandatory targets (on Quarterly average basis) under Priority Sector and Agriculture including sub-targets of Small and Marginal Farmers, Direct lending to non- Corporate farmers, Micro Enterprises, Weaker Section, etc. during the FY 201920.

Bank focused on growth of Investment Credit under Agriculture during the year 2019-20 and disbursed Rs.1,495 Crore. Bank has organized 2,500 Credit Camps for Investment Credit under Agriculture and Agri Loan Expo throughout the country. As a result, Investment Credit of Bank grew by 13.64% over previous year reaching to the level of Rs.5,099 crore.

Bank entered into strategic tie-ups with Tractor Manufacturers, Micro Irrigation Companies, Farm Pond Construction Company for promoting farm mechanization, micro irrigation activities and also with Govt. of Maharashtra under POCRA Project for financing to FPO during the year. It also entered into an Agreement for Credit Guarantee with Small Farmers Agri Business Consortium (SFAC) for financing to Farmer Producer Organizations (FPOs). It also devised Area Based schemes to meet the needs of Agriculture and Agro based industries which are becoming popular due to competitive ROI and customer- friendly features.

Over last few years, Agriculture sector has been repeatedly hit by vagaries of natural calamities like drought, flood, hailstorms, etc. Within the regulatory guidelines, Bank has been extending relief measures to farmers from time to time. Our bank is also successfully implementing farm loan waiver scheme of Govt of Maharashtra. During the year Bank credited Rs.343 crore under CSMSSY-2017 (old debt waiver scheme) & Rs.1,086 crore under MJPSKY-2019 (new debt waiver scheme). Along with this, Bank has efficiently implemented various other Farm Loan Waiver schemes declared by respective states. The Bank undertook awareness/sensitization program and locational trainings for the branches for increasing advances to agriculture by providing hassle free credit to farmers.

4.2.1 Mahabank Kisan Credit Card

This scheme gained popularity especially in rural areas where it is being propagated successfully and vigorously. The bank organized around 1,209 Credit Camps during Kharif, 2019 season across the country. During, FY 2019-20 the bank sanctioned total 1,38,788 Kisan Credit Cards to farmers amounting to Rs.2,259 crore. Credit flow to MKCC beneficiaries reached to a level of Rs.7,237 Crore as on 31.03.2020. As per regulatory guidelines, Bank has introduced MKCC for Animal Husbandry and Fisheries. The scheme is helping small and scattered dairy farmers, fishermen and entrepreneurs in animal husbandry to grow their business and also becoming popular in rural and semi urban areas.

4.3 Micro, Small and Medium Enterprises (MSME)

MSMEs are recognized as a major growth engine for the Indian economy. They generate opportunities for direct and indirect employment by facilitating use of natural resources and local skills to stem the tide of migration to urban areas and promote low investment enterprises. Finance is made available to viable enterprises at an attractive and low rate of interest. Online enquiry portal is made available on the Bank's website. Bank has already adopted Simplified Loan Application for MSEs and the same is displayed on the Bank's website. Bank has also adopted Bank's Code of Commitment to Micro and Small Enterprises. Bank's lending to Micro, Small and Medium Enterprises (Priority) increased by 25.04% as compared to March 2019 and recorded a growth of Rs 3437 crore in absolute terms. Bank's performance in MSME portfolio in FY20 can be seen below in the table:

S.No Particulars Actual Target
1 % of MICRO to Adj. Net Bank Credit 9.92% (Target 7.50%)
2 MSME Outstanding Growth YOY 25.04% (Annual growth)
3 YOY Growth under Micro Enterprises O/s 39.18% (Annual Target 10%)
4 YOY Growth under Micro & Small enterprises O/s 23.46% (Annual Target 20%)
5 Share of Micro against to MSE O/s 61.06% (Annual Target 60%)

4.3.1 MUDRA

Bank is giving special attention to credit needs of the non-farm enterprises engaged in manufacturing, trade and services up to Rs.10 Lakhs. With the introduction of Pradhan Mantri MUDRA Yojana (PMMY), banks outreach to small borrower has improved in FY 2019-20. Bank sanctioned Rs.2,410.83 crore under PMMY against the target of Rs.2,300 crore as on 31.03.2020. Bank achieved 102.51% of target allotted by Government under PMMY. As on 31.03.2020, total MSME advances of the Bank stood at Rs 17,164 crore, registering growth of 25.04%. The share of MSME advances in total advances stood at 18.09% as on 31.3.2020. Under CGTMSE scheme, Bank sanctioned loans of Rs 569.42 crores to 1,833 borrowers up to March 2020.

Other Major Achievements

• Bank has been on boarded as Financier on the PSB loan portal, a new initiative of the Govt. of India during the financial year and sanctioned 1,067 cases amounting Rs.365.37 crore.

• Bank has implemented the MSME Restructuring guidelines issued by Reserve Bank of India and have restructured 12,407 accounts amounting to Rs.879.85 crore during FY 2019-20.

• Organized MSME outreach programme in month of October 2019 in various zones and sanctioned total Rs.320.09 Cr.

• Organized MSME Expo in different zones in month of February 2020 and sanctioned total amount Rs.176.59 Cr.

• Launched new scheme MSME Cluster Financing for "Green Economy" under Pradhan Mantri Mudra Yojana (PMMY). Launched cluster financing for three identified clusters namely Textile, Stone and Ceramic.

• Introduced new schemes-Maha Contractor Scheme, Maha Hospitality Scheme and ‘Standby Line of Credit for MSME (SLC-MSME) & Standby line of credit for working capital (SLC-WC) to give additional comfort to the existing MSME borrower in regard to liquidity easing.

• Under SUI Scheme, there is sanction of Rs.87.42 Cr and disbursement is Rs.40.55 Cr. (New branches on boarded in Metro - 390, Urban - 214, Semi Urban - 152 and Rural-101.)

• Surpassed the allotted target of Rs.269.0 Cr for the Mahabank Contractor Scheme Campaign (Campaign Period: 18.11.2019 to 18.12.2019). During the campaign itself, there was disbursement of Rs.101.53 Cr.

4.3.3 Banks exposure to select segments

Banks exposure is given below:

(Rs. in Crore)

Sr. No. Sector As on 31.03.2020 As on 31.03.2019 % increase (+/-)
1 Micro/SHG Finance 217 208 4.33%
2 Weaker Sector 10481 11423 -8.25%
3 SC/ST beneficiaries 2530 1667 51.77%
4 Minority Community 3017 2924 3.18%

5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK:

5.1. Credit Flow to Retail Sector

Bank is providing retail loans for salaried persons, professionals, businessmen and pensioners for purchase of housing properties/ plots, repair/ renovation of house, purchase of consumer durables, two/four wheeler vehicles, education and loan for other personal needs etc. The retail loan portfolio of the Bank stood Rs 22810.10 Crore.

Amt. in Rs.Crore)

SN Scheme Brief Description Portfolio as of Mar '20 NPA %
1 Maha Super Housing Loan Scheme Housing loan for purchase/construction of new/existing house/flat, repairs/renovation/alteration of existing house/flat, purchase of plot and construction thereon. 14,915.71 3.92
2 Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme Bank has launched schemes for purchase of New four wheeler i.e. Car, Jeep, Multi Utility vehicles (MUVs), SUV etc. for personal use. (i.e. not for hiring/ferrying passengers) for individuals (18 years and above). 1,444.79 2.85
3 Model Education Loan Scheme Bank is implementing Model Education Loan Scheme as per IBA guidelines. The bank introduced Mahascholar Education loan Scheme to provide financial assistance/ support to meritorious students for pursuing higher studies /education in courses conducted by the Premier Educational Institutions in India as a differentiated product. 1,227.70 6.05
4 Loan Against Self-Occupied Property Bank has introduced Loan Against Self-Occupied Property in which loan is given to the borrower against the property. The end use of the loan is for meeting varied personal needs like Children's Education, marriage of children, medical treatment, travel/ tour expenses, buying vehicle or hi- tech gadgets. 686.48 0.78
4 Mahabank Top up Loan Scheme In order to extend additional credit support to existing housing loan borrowers as well takeover of existing housing loans of other banks with additional facility of Top-up Loan, Bank has launched "Mahabank Top Up loan Scheme". 422.66 0.70
5 Mahabank Gold Loan Scheme With a view to tap the potential of gold loans as a lucrative asset and to cater to the needs of meeting other personal expenses, whatsoever which include personal expenditure for varied needs like marriage, higher education, medical emergencies, business travel etc, Bank has launched a retail loan product as "Mahabank Gold Loan Scheme" w.e.f. 26.09.2014. 127.87 1.47
6 Mahabank Aadhar Loan Scheme To cater to the needs of our existing pension account holders in meeting their personal expenses, pilgrimage, medical and domestic needs etc; Bank has re-launched "Mahabank Aadhar Loan Scheme". 575.22 0.97

5.2. Centralized Processing of loans

Bank has established Centralized Processing Cells (CPCs) for processing and sanctioning commercial advances at all its 32 Zones to improve the TAT in facilitating timely credit. In addition, total 32 CPCs for retail credit are functioning in all Zones. In future, the bank intends to increase the number of CPCs Retail as per location requirement and business potential.

5.3 Door Step Banking Services

Bank is providing Door Step Banking Services for its High End Customers. The services include Corporate and Retail Cash pickup and delivery & Cheque Collection Services.

5.4 Alternate Delivery Channels

5.4.1 Internet /SMS/Phone Banking

1. There was an increase of 10.40% in Internet Banking, 23% in Phone Banking and 13% in SMS banking users over the previous year.

2. With continuous follow up and increase in net security through the Mahasecure for IB users, substantial rise in users/online transactions is expected.

3. In the Internet banking, additional 13 services and 42 functionalities are added for more customer ease and convenience.

4. In the current financial year over 47.27 crore digital transactions were carried out through various channels.

5.4.2 Mobile Banking

1. Maha Mobile functionality has been customized and simplified (12 services and 30 functionalities) for increasing enrolments.

2. Mobile banking users increased by 37.23 % during the year.

6. CORPORATE SOCIAL RESPONSIBILITY

Following the legacy of age old tradition of contributing to socioeconomic development & upliftment of underprivileged, weaker sections and rural citizens, Bank undertook varied activities aligned to Govt. guidelines viz.:

Swachha Bharat Abhiyan: Bank provided dustbins to various Municipal corporations, installed ready-toilets for women in Vadgaon Maval Nagarpanchayat

Inclusive Growth: Bank provided flood relief material to people affected in Satara, Kolhapur in Maharashtra State, Upgraded rural govt. centres by providing laptop and other infrastructures, Bank helped in making available safe drinking water to school students and citizens in Pune District

Promotion of Education: Bank helped to set up digital classroom, Bank provided scholarship to meritorious rank holder students of 10th & 12th exams in State & Central Board of Education, Provided school uniforms to under-privileged children

• Employees of the Bank Contributed to Chief Minister's Relief Fund for Floods in Odisha, Maharashtra, Bihar & Kerala also donated to PM CARES Fund & CM Relief Fund of various states for fight against covid pandemic

Rural Development & Women Empowerment:

Bank is undertaking various social activities through Rural Development Centre (RDCs) and two trusts of Bank i.e. Mahabank Agricultural Research and Rural Development Foundation (MARDEF) and Gramin Mahila Va Balak Vikas Mandal (GMBVM) in the areas of Agriculture, Rural development & women empowerment.

a) Trainings through Mahabank Rural Self Employment

Training Institutes (MRSETIs)-

• Bank was awarded with National Award by MORD, GOI as Best Performing Bank for RSETI activities (for FY 2018-19).

• During the year 2019-20 Bank imparted EDP & skill based training to 5507 trainees as against set target of 4915.

• A total of 4370 new businesses were started by these trained entrepreneurs, showing settlement ratio of 79.35%; 2262 units are credit linked, showing 51.76 % achievement under credit linkage.

b) Activities through RDCs:-

• Besides advocating farmers for their credit needs, Bank organized 132 Farmer Training Camps wherein 6,132 farmers were given specialized training on various modern Agricultural technologies.

• Soil and water testing was carried out for the benefit of the farmers through RDC Bhigwan. During the year 2019-20, 3,560 soil and water samples are tested and reports were provided to farmers along with necessary recommendations.

• 756 Financial Literacy Camps were organized wherein 90,113 participants were educated for banking, digital transactions, use of UPI, BHIM App and social security schemes like PMJJBY, PMSBY, APY, etc.

c) Other initiatives: -

• Bank received National Award for best performance in SHG financing under DAY NRLM

• Formed and credit linked 16,962 new SHGs amounting to Rs.233.32 Cr. as against the target of 12,992 amounting to Rs.155.38 Cr. (150%).

• Bank is also implementing the social security schemes of Govt. like PMJJBY, PMSBY, APY, etc. through Branches, BCs and other digital modes.

• GMBVM provided skill based training to rural women for self-employment activities like Agarbatti, Candles, etc. to empower them for starting new business. These women are running their business on individual as well as through SHGs.

7. LEAD BANK SCHEME

7.1 Lead Bank Scheme

The Bank has Lead Bank responsibility in seven districts of Maharashtra viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane. Every year District Credit Plans for the districts are prepared and implemented with the cooperation of other banks as well as in coordination with District Collectors of respective Districts.

7.1 State Level Bankers' Committee

The Bank is the Convener of State Level Bankers' Committee (SLBC) for the State of Maharashtra. SLBC prepares State Annual Credit Plan in consultation with Lead District Managers, Member Banks, NABARD, Reserve Bank of India, etc. The Priority Sector plan for the year 2019-20 was for INR 4,24,029 crore, which was one of the highest in the country. The same was approved in a special meeting held under the Chairmanship of Hon'ble Chief Minister of Maharashtra.

SLBC also ensures holding of quarterly meetings regularly to oversee the implementation of State Annual Credit Plans, Priority Sector lending and Govt. sponsored schemes in the State. Apart from regular SLBC meetings, various other meetings are also organized by SLBC to coordinate between various Members Banks, State Government, Government Agencies, Reserve Bank of India, NABARD and the Central Government. SLBC coordinates a network of more than 17,200 bank branches in the state.

As SLBC convener, Bank of Maharashtra coordinated implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the Maharashtra. A total of 270 lakh PMJDY accounts have been opened in the State. SLBC Maharashtra also received award for highest Aadhar Seeding of PMJDY accounts from Department of Financial Services, Ministry of Finance (Govt. of India). During 2019-20, SLBC Maharashtra received Best Performing SLBC Award from Pension Fund Regulatory & Development Authority (PFRDA), New Delhi under Citizens' Choice Campaign for highest number of Atal Pension Yojana (APY) enrollments during August 2019.

7.3. FINANCIAL INCLUSION/PMJDY: (FI)

Financial Inclusion Performance of the Bank in FY20

Year

2018-19 2019-20
1) PMJDY Performance
% OF Aadhaar Seeding 89.38% 90.75%
% of Mobile Seeding 77.88% 80.68%
% of Ru-Pay Card issued 22.84% 31.04%
Balance in PMJDY A/c (in Cr) 1469.81 2057.37
Average Bal. per account (actual) 2611 3332
PMJDY - OD Count (in lakhs) 0.11 2.53
PMJDY - OD Amount (in lakhs) 73.92 2774.01
Zero Bal. PMJDY A/cs (in lakhs) 15.35 14.82
2) BSBD Accounts
Total BSBD Accounts (in lakhs) 83.15 85.2
O/S Balance in BSBD A/c (in Cr) 1902.69 2635.39
Average bal. per account (actual) 2288 3093
Commission Paid towards BC Services (in Crore) 21.98 27.88

To spearhead its efforts in opening PMJDY accounts the bank has now a full-fledged call center with toll free number 18001022636 for redressal of PMJDY grievances. In appreciation of its efforts towards financial inclusion, the bank was also recognized by the DFS in its FY 2019-20 report for excellent performance in the field of financial inclusion, which included:

• Securing First position among all Public Sector Banks in issuing the Rupay Card.

• Securing Second in Percentage growth of deposit amount in PMJDY Accounts.

• Securing Sixth in number of PMJDY accounts opened.

• Best Performing Public Sector Bank under the major Bank Category for Atal Pension Yojana Formation Day Campaign, held from 9th May 2019 to 23rd may 2019.

• Certificate of Appreciation under the APY Mission Possible Campaign, held from 15th July to 26th July 2019, the Bank activated 1693 branches against the 90% activation target i.e. 1648 branches.

8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS:

8.1 Performance of Regional Rural Bank

Maharashtra Gramm Bank (MGB) is a Regional Rural Bank sponsored by the Bank, having its Head Office at Aurangabad, Maharashtra State. Total no. of branches as on 31.3.2020 stood at 412 in its area of operation covering 17 out of 36 districts of Maharashtra state. All 412 branches and controlling offices are now under CBS. MGB had opened 4 new branches during the year 2019-20.

Performance highlights are as under:

• Bank has achieved total business of Rs.17,083.70 Crore.

• Bank has achieved operating profit of Rs 141.65 Crore.

• Net profit stood as Rs.27.19 Crore as on 31.03.2020.

• Bank has achieved most of the target under MoU DAP given by sponsor Bank for the financial year 2019-20 in the major key performance parameters, as under.

S.No. Performance Parameter Target FY 2019-20 Actual as on 31.03.2020
1 Growth in Total Deposit (%) 15.01% 15.27%
2 Growth in CASA deposit (%) 16.75% 18.04%
3 Interest Income 945 908.86
4 Non-Interest Income 90 101.38
5 Recovery in Write off 4 4.87

Under Pradhan Mantri Jan Dhan Yojana, surveys of all allotted 898 SSAs and 80 wards were conducted for identification of households having no bank account. The Bank has covered all allotted SSAs by engaging BCAs. Total 18.88 lakh PMJDY accounts have been opened till 31.03.2020 and 9.36 lakh RuPay ATM debit cards have been issued to PMJDY account holders. Maharashtra Gramin Bank has actively participated in the PMJJBY, PMSBY and APY as well as the PMMY scheme declared by the Government of India.

8.1 Performance of METCO

The Maharashtra Executor & Trustee Company Pvt. Ltd., the 100% subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide services auxiliary to banking such as:

> Consultation, Drafting & Execution of will

> Consultation, Drafting and Management of Private Trusts/Public Trusts

> Management of investments & house properties as attorney

> Guardianship of minor's property

> Consultation for sale/purchase of property

The Company is located at Pune having its branch units at Pune, Vashi-Mumbai, Thane and Nagpur. It is managing about 1,025 Public & Private Trusts. During the year, additional 28 Wills were added making total 1,183 Will in its custody for execution. At present, the Company manages properties both movable and immovable of 21 clients under the Power of Attorney. The Company also acts as the Trustees in respect of 99 policies under Married Women's Property Act and as Court appointed Guardian of minor's property in 2 cases. The Company also acts as Managing Trustees of nearly 20 trusts and catalysts its social responsibility by extending help to poor people.

Company has followed all the instructions regarding safety during COVID-19 issued by Government of India/Ministry of Corporate Affairs. Company also distributed 100 PPE Kits to Sadhu Vaswani Mission's Inklas & Budhrani Hospital Pune. The Company has also donated through its trust Rs.1.05 lacs to different NGO and trust for distribution of Foods etc., to the needy masses. The fund was arranged from the trusts. During the FY20, the company has extended approx. Rs.30 lacs to nearly 120 beneficiaries.

The net profit of METCO for F.Y. 2019-20 stood Rs.74.07 lakh.

9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

During the year 2019-20, the Bank achieved various remarkable achievements in the field of Official Language implementation:

• The Bank was awarded "Rajbhasha Kirti Puraskar" for better implementation of Rajbhasha Hindi, which is the highest award for Rajbhasha. Shri A. S. Rajeev, Managing Director & CEO, Bank of Maharashtra received this prestigious award at the hands of Hon'ble Minister of Home Affairs, Shri Amit Shah in a grand function arranged at Vigyan Bhawan, New Delhi on 14th September, 2019.

• The Bank was awarded prestigious Skoch Order-of- Merit Award at New Delhi for Better Implementation of Rajbhasha. In Banking Industry our bank is the first to receive this Award for Hindi Implementation.

• The Bank was awarded "Vishesh Puraskar" by the Mumbai based prestigious Institution ‘Aashirvad' for better use of Hindi during the year.

• Dr. N. Muniraju, General Manager (HRM & Rajbhasha) was awarded "Rajbhasha Gaurav" Puraskar for remarkable work in the field of Official Language.

• Various Town Official Language Implementation Committees convened by other Banks have awarded our Kolkata, Goa, Amaravati Zonal Offices and Jodhpur Branch (Jaipur Zone), Kanpur Branch (Lucknow Zone), Kota Branch (Jaipur Zone) and Gwalior Branch (Bhopal Zone) for excellent implementation of Official Language.

• Hindi day function was arranged at Head Office, Pune on 18th September, 2019. Shri A.S. Rajeev, Managing Director & CEO of the Bank presided over the function. Ms. Sonali Kulkarni, renowned Hindi and Marathi actress was the Chief Guest. Shri M.K. Verma, Director, Shri A.C. Rout, Executive Director, Shri Hemant Tamta, Executive Director & Dr. N. Muniraju, General Manager, HRM & Rajbhasha were also present in the function. Winners of the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.

• A two day Annual Rajbhasha Conference 2019-20 for all the Hindi Officers of Bank was organized on 09th & 10th January 2020 at Chennai. Shri A. S. Rajeev, Managing Director & CEO of the Bank inaugurated the conference.

• Monthly Rajbhasha E-Magazine ‘Rajbhasha E-Pragati' is being regularly published every month. As a new initiative Rajbhasha E-Pragati in Brail script is also published for the benefit of differently abled employees of the Bank.

• Bank's Quarterly In-house Magazine "Mahabank Pragati" is being regularly published.

• Bank of Maharashtra is the convener Bank for Town Official Language Implementation Committee (TOLIC) in Mumbai, Pune, Solapur, Latur & Jalgaon. Meetings of these committees were held regularly during the year and various activities of the committees were organized throughout the year as per the schedule.

• "Hindi Karya Diwas" (Hindi Working Day) is being observed by all the branches & offices of the Bank on the third Saturday of every month.

• Hindi facility has been provided in Maha-Mobile. The department has also completed the translation work for implementation of Hindi in CBS & Internet Banking.

• The facility of "Online Rajbhasha Kosh" & "Online Hindi Roster" is made available through ULC for the use of employees.

10. SECURITY

The Bank has put in place a comprehensive Security Policy covering the entire Security arrangements in the Bank. The policy covers the following:-

• Protect the bank's assets such as Cash, Gold, Documents and Valuables at branches, Administrative offices, Currency chests, Data Centre, other critical centres and Security measures for Cash and Valuables.

• Create a secure, safe and conducive environment for Staff, visitors and customers to conduct smooth and normal banking business.

• Measures to counter manmade disasters and natural calamities.

During the FY 2019-20, proactive steps were taken on the physical security requirements in the Bank after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of bank robberies, breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any eventuality.

11. SECRETARIAL AUDIT:

Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019, Bank had appointed M/s. Apte Joshi & Associates, Practicing Company Secretaries, Pune as a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year 2019-20. The Secretarial Audit Report is annexed to this Report. There is no Secretarial audit qualification for the year under review.

12. DIRECTORS' RESPONSIBILITY STATEMENT:

The Directors confirm that in the preparation of the annual accounts for the year ended 31.03.2020:

> The applicable accounting standards of the Institute of Chartered Accountants of India, 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, are consistently applied and proper disclosures are made for changes, if any;

> Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and the profit of the Bank for the year.

> Proper and sufficient care was taken for maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks, in India;

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

13. CHANGES IN THE BOARD OF DIRECTORS:

During the year 2019-20, the following changes took place in the Board of Directors:

> Shri Deendayal Agrawal, Director of Bank completed his tenure on 25.07.2019.

> Shri Manoj Kumar Verma was appointed as RBI Nominee Director of Bank by the Central Government w.e.f 13.08.2019 in place of Shri G. Sreekumar.

> Dr. Archana Dholakia, Director of Bank completed her tenure as Director of Bank on 29.02.2020.

> Shri Nageswara Rao Y. was appointed as an Executive Director of Bank by the Central Government w.e.f 31.03.2020 in place of Shri A.C. Rout, who completed his term of Executive Director of Bank on 30.03.2020.

14. DIVIDEND DISTRIBUTION POLICY:

In terms of Clause 43A of SEBI-Listing Obligation and Disclosure Requirement Regulations, Bank has formed a Dividend Distribution Policy and the same is available on the Bank's website i.e. www.bankofmaharashtra.in.

15. BUSINESS RESPONSIBILITY REPORT:

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2019-20 of the Bank is annexed to the Annual Report and same is also available on the Bank's website i.e. www.bankofmaharashtra.in.

16. ACKNOWLEDGEMENT

The Board of Directors place on record their appreciation for the contributions made by the outgoing Directors viz. Shri A.C. Rout, Shri Deendayal Agrawal, Shri G. Sreekumar and Dr. Archana Dholakia.

The Board of Directors wishes to express sincere gratitude to the Government of India, the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority, the Indian Banks' Association and Stock Exchanges and CDSL for their valuable advice and support; to the customers and shareholders for their patronage; to the correspondents and associates for their cooperation and to all the members of staff of "Mahabank Family" for their unstinted commitment and contribution to the overall development of the Bank.

For and on behalf of the Board of Directors
Place: Pune (AS. RAJEEV)
Date 16th June, 2020 Managing Director and CEO

   

Bank of Maharashtra Company Background

A S Rajeev
Incorporation Year1935
Registered OfficeLokmangal,1501 Shivajinagar
Pune,Maharashtra-411005
Telephone91-20-25511360,Managing Director
Fax91-20-25533246
Company SecretaryChandrakant Bhagwat
AuditorParikh & Associates/M D Gujrati & Co/P G Bhagwat
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarMCS Share Transfer Agent Ltd
A-209 C Wing 2nd Flr,Gokul Indl Est Bldg.,Andheri East ,Mumbai - 400059

Bank of Maharashtra Company Management

Director NameDirector DesignationYear
R Thamodharan Director(Shareholders) 2020
G SreekumarDirector2018
Chandrakant Bhagwat Company Secretary 2020
R ThamodharanDirector(Shareholders)2018
Vandita Kaul Director 2020
Chandrakant BhagwatCompany Secretary2018
A S Rajeev Managing Director & CEO 2020
Hemant Kumar Tamta Executive Director 2020
Deendayal AgrawalDirector2018
Manoj Kumar Verma Nominee (RBI) 2020
Nageswara Rao Y Executive Director 2020
Alekh C RoutExecutive Director2018
Vandita KaulDirector2018
A S RajeevManaging Director & CEO2018
Hemant Kumar TamtaExecutive Director2018
Archana Ravindrarai DholakiaDirector(PartTime NonOfficial)2018

Bank of Maharashtra Listing Information

Listing Information
BSE_500
BSE_PSU
CNX500
BSESMALLCA
PSUBANK
BSEALLCAP
BSEFINANCE
SML250
MSL400

Bank of Maharashtra Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/Discount on Adv Rs.0006409.2701
Income on Investments Rs.0004202.692
Others Rs.000642.5037
Interest on bal with RBI Rs.000240.9813

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