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, 2019.
1. MANAGEMENT DISCUSSION AND ANALYSIS: 1.1 Economic and Banking Scenario 2018-19
Global growth has shed some momentum in 2018 in an environment of volatile crude
prices, geopolitical tensions and escalating trade wars. Financial conditions especially
in the emerging market economies have tightened with capital outflows and asset price
volatility.
Domestically, a pickup in GDP growth took hold in the first half of 2018-19, having
shrugged of the transient effects of demonetization and implementation of the Good and
Services Tax. A strong revival in bank credit growth during 2018-19 by private and public
sector banks and NBFC's suggests an overall improvement in the health of the Indian
Financial System. Indian banks are increasingly focusing on adopting integrated approach
to risk management. Reserve Bank of India (RBI) has decided to set up Public Credit
Registry (PCR) an extensive database of credit information which is accessible to all
stakeholders. The Insolvency and Bankruptcy Code is expected to strengthen the banking
sector.
1.2 Outlook for 2019-20
The improvement in global economic conditions offers greater scope for policymakers to
shift from a short-term focus that is inevitably part of coping with crises, towards
addressing longer-term challenges and eliminating deep-rooted barriers to development.
India's GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year
2019-20, driven by continued investment strengthening, particularly private-improved
export performance and resilient consumption. The private consumption expenditure is
expected to receive a boost from remonetisation and lower borrowing costs. Rise in crude
prices could however play a spoilsport.
The various proposals in the Union Interim Budget 2019-20 with regards to launching of
Pradhan Mantri Shram Yogi Mandhan, PM-KISAN programme, focus on more technical jobs by
focus on schemes like MUDRA, Start up India and Stand Up India and Empowering MSME and
Traders and thus supporting domestic trade and services will act as a catalyst for growth.
Banking sector is also expected to be benefitted by the amendment in Insolvency and
Bankruptcy Code and the innovations in form of massive adoption of Artificial intelligence
and Blockchain technology being undertaken by the fintech companies.
2. PERFORMANCE HIGHLIGHTS 2018-19:
1. Total Business of your Bank stood at `234116.79 crore as on 31.03.2019 as against `
233626.38 crore as on 31.03.2018.
2. Total deposits stood at ` 140650.09 crore as compared to ` 138981.18 crore last
year.
3. CASA deposits increased to ` 69829.81 crore as on 31.03.2019 from ` 66345.44 crore
as on 31.03.2018, registering a growth of ` 3484.37 Crore. Share of CASA to total deposits
stood at ` 49.65% as on 31.03.2019.
4. Gross advances of the Bank stood at ` 93466.70 crore as on 31.03.2019 in comparison
to `94645.20 crore as on 31.03.2018 as a result of Bank's policy to focus more on retail
advances instead of dependence on big corporate advances.
5. Operating Profit stood at ` 2197.61 Crore for the year ended 31.03.2019 as against `
2191.40 crore for year ended 31.03.2018.
6. Business per Employee increased to ` 18.13 crore as on 31.03.2019 as against ` 18.07
crore as on 31.03.2018.
Corresponding figures for Business per Branch are ` 127.79 crore and ` 126.56 Crore
respectively.
2.1 Sectoral Deployment of Credit
|
O/s as on |
O/s as on |
| Particulars |
31.03.2019 `crore |
Percentage to total O/s |
31.03.2018 `crore |
Percentage to total O/s |
| Industry |
36,491.52 |
39.04% |
44,671.77 |
47.20% |
| Of which |
|
|
|
|
| i. Infrastructure |
8,844.99 |
9.46% |
8,927.06 |
9.43% |
| ii. Chemicals, |
|
|
|
|
| Dyes, Paints etc |
2,219.63 |
2.37% |
1,930.20 |
2.04% |
| iii. Petroleum |
365.33 |
0.39% |
341.74 |
0.36% |
| iv. Iron and Steel |
1,844.24 |
1.97% |
4,699.00 |
4.96% |
| v. NBFCs and |
|
|
|
|
|
10,672.69 |
11.42% |
14,182.77 |
|
| Trading |
|
|
|
14.99% |
| vi. Engineering |
2,942.93 |
3.15% |
3,246.19 |
3.43% |
| vii. Construction |
5.21 |
0.01% |
5.04 |
0.01% |
| viii. Other Industries |
9,596.50 |
10.27% |
11,339.77 |
11.98% |
| Agriculture |
15,220.30 |
16.28% |
15,066.63 |
15.92% |
| MSME |
13,632.94 |
1.46% |
15,940.00 |
16.84% |
| Housing |
12,052.10 |
12.89% |
13,572.69 |
14.34% |
| Education |
1,086.53 |
1.16% |
995.25 |
1.05% |
| Exports |
1,200.04 |
1.28% |
1,209.66 |
1.28% |
| Commercial Real estate |
2,324.14 |
2.49% |
31,89.00 |
3.37% |
| Gross Advances |
93,466.70 |
|
94,988.00 |
|
2.2 Quality and NPA Management
1. Bank has set up "Asset Recovery Cells (ARC)" at all zonal offices to
ensure focused efforts for upgradation and NPA recovery.
2. Twelve Asset Recovery Branches (ARBs) have also been set up across the Zones for
large NPA a/cs more particularly where legal actions are in progress so as to make focused
follow up.
3. Further, Bank has established Stressed Assets Management Vertical by way of a
separate department at H.O. under which Bank has started (four) Stressed Assets Management
(SAM) branches in Delhi, Mumbai, Hyderabad and Pune, where NPAs with balance of `5 crore
and above is monitored. Focused follow up is undertaken to improve NPA recovery.
4. 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 overdues has enabled in improving recovery and upgradation of
NPAs.
5. The Bank has also set up separate Cells at its Head
Office for identification of Wilful Defaulters, increasing recovery in Written Off
accounts, gearing up the actions under DRT / SARFAESI Acts.
6. Bank has been implementing Suo Motu non-discriminatory and non-discretionary One
Time Settlement (OTS) Schemes. Monitoring of the performance under the schemes is
undertaken by
Recovery Department, Head Office on daily basis.
During 2018-19, the Bank introduced following OTS schemes:
1) "Ghar Ghar Dastak Yojana 2018-19" (GGDY-2018-19) was introduced for
Small NPA borrowers up to `100 lakh.
2) Maha-riyayat Yojana (MrY): Maha-Riyayat Yojana (MRY) was introduced for NPAs
having ledger balance above `1 crore and up to `50 crore.
3) CSMSSY -2017: The Government of Maharashtra announced a loan waiver scheme,
named as "Chhatrapati Shivaji Maharaj Shetkari Samman Yojana 2017" (CSMSSY
-2017) for farmers in the State of Maharashtra. The Bank introduced a scheme for one time
settlement of Specified NPA accounts under
CSMSSY - 2017 as proposed by Government of Maharashtra.
4) Jai Kisan Fasal Rin Mafi The Government of Madhya Pradesh announced a loan
waiver scheme named as "Jai Kisan Fasal Rin Mafi Yojana" for the farmers in the
state of Madhya Pradesh. In this regard, Bank has introduced a scheme for one time
settlement of Agriculture Crop Loan accounts upto ` 2 lakh under Jai Kisan Fasal Rin Mafi
Yojana as proposed by Government of Madhya Pradesh.
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. Position of Non-Performing
Assets is as under;
| Particulars |
Amt. as on 31.03.19 |
Amt. as on 31.03.18 |
Percentage of (+/-) |
| Gross NPA |
15,324.49 |
18,433.23 |
(16.86%) |
| % to advances |
16.40% |
19.48% |
XXX |
| Net NPA |
4,559.33 |
9,641.09 |
(52.71%) |
| % to advances |
5.52% |
11.24% |
XXX |
| Cash Recovery |
2,570.11 |
1,960.51 |
31.09% |
| 2.3 foreign Exchange Business |
|
|
(` in crore) |
| Particulars |
2018-19 |
2017-18 |
Percentage of (+/-) |
| Total FEX Business Turnover |
812,351.14 |
589,806.00 |
37.73 % |
| Merchant Business Turnover |
37,311.51 |
30,687.93 |
21.58 % |
| Profit in FEX Business |
132.39 |
110.16 |
20.18 % |
Bank has 35 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 2018-19 stood at ` 37311.51Crore.
2.4 Investment
The breakup of Investments into SLR & Non-SLR investments is given below:
The Gross Investments as on 31.03.2019 stood at
` 60,163.68 crore, of which ` 34,170.60 crore are
SLR securities and ` 25,993.08 crore are Non-SLR Securities. The excess SLR securities
as on 31.03.2019 stood at ` 6827.27 crore.
The net investments (net of provisions) stood at
`59,697.05 crore as on 31.03.2019 as compared to `43,662.80 crore as on 31.03.2018.
Investments under Held to Maturity (HTM) category consisted of 58.88%, while Available for
Sale (AFS) comprised of 41.11% of total investment portfolio as of 31.03.2019. The net
interest income from investment activity increased to `3,689.61 crore from `2,962.41 crore
during the last year (growth of 24.55%).
The Non-Performing Investments stood at `266.04 crore as on 31.03.2019.
2.5 Merchant Banking:
The Bank handled 52 issues (previous year 75 issues) of Commercial paper amounting to
`8360 crore (previous year `36445 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 2019 stood at
`10,149.17 crore including re-finance as under:
| Particular |
Amount as on 31.03.2019 |
Amount as on 31.03.2018 |
Percentage of (+/-) |
| Total Borrowing |
10149.17 |
4063.71 |
149.75 |
| of which Borrowing RBI under LAF |
1500.00 |
0.00 |
- |
| of which Borrowing Market REPO |
2003.63 |
0.00 |
- |
| of which Borrowing TRePS (G-Sec) |
3277.48 |
0.00 |
- |
| of which Refinance from |
|
|
|
| NABARD |
140.00 |
280.00 |
(50.00) |
| EXIM BANK |
0.00 |
67.57 |
- |
| NHB |
92.62 |
185.26 |
(50.01) |
| MUDRA |
0.00 |
182.53 |
|
| Of which Borrowings in the form of Bonds & debentures capital instruments |
3100.00 |
3300.00 |
(6.06) |
| Borrowings outside India |
35.39 |
48.31 |
(26.74) |
| Others |
0.05 |
0.05 |
- |
During the FY 2018-19, Bank has redeemed Basel II /Basel III Compliant Bonds for an
amount ` 200 crore on the redemption date. Bank undertook borrowing as part of its asset
liability management.
2.7 Depository Services
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)
2.8 Bancassurance
Bank is corporate agent for carrying out Bancassurance business. Bank has made tie up
arrangements with following insurance companies: Life Insurance
LIC of India
Aviva Life Insurance
Reliance Nippon Life insurance
General Insurance
United India Insurance
Future General Insurance
Health Insurance
United India Insurance
Cigna TTK Health Insurance
Performance during the year 2018-19: ` (in crore)
| Insurance |
No. of Policies |
Premium |
Commission |
| Life |
10640 |
67.23 |
10.07 |
| General |
116842 |
38.54 |
5.93 |
| Health |
31203 |
18.43 |
3.46 |
| Total |
158685 |
124.19 |
19.46 |
2.9 Government Business
During the year 2018-19, 721999 challans of Direct Taxes and 49276 challans of Indirect
taxes were collected by the branches. Total commission to the tune of `5.35 Crore was
received on Tax collection business from Central/state Government and other business in
current year As a service to senior citizens, the Bank is processing and crediting monthly
pension payments of more than 110914 Central Government, Defence, Railway and Telecom
pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government
Business (Pension) for the Year 2018-19 is ` 14.04 Cr. Government Sponsored Small Saving
Schemes like Public Provident Fund (PPF), Senior Citizen Saving Scheme (SCSS) and Sukanya
Samruddhi Account (SSA) is now made available to customers through all Branches
2.10 Income, Expenditure and Profitability
The total income of the Bank stood at ` 12397.06 crore in FY 2018-19 as compared to
`12602.47 crore in FY 2017-18. The detailed income/ expenditure components are as under:
|
|
|
(` in crore) |
| Particulars |
2018-19 |
2017-18 |
Variation (per cent) |
| Interest / discount on advances / bills |
6566.64 |
7072.71 |
(7.16 ) |
| Income on investments |
3689.61 |
2962.41 |
24.55 |
| Interest on interbank lending & other Interest |
593.35 |
1061.30 |
(44.09) |
| Total interest income |
10849.60 |
11096.42 |
(2.22) |
| Non-interest income |
1547.46 |
1506.05 |
2.75 |
| Total Income |
12397.06 |
12602.47 |
(1.63) |
| Interest on deposits |
6750.94 |
7133.17 |
(5.36) |
| Interest on borrowings |
29.57 |
11.49 |
157.35 |
| Other Interest expenditure |
335.61 |
562.02 |
(40.29) |
| Staff expenses |
1794.17 |
1618.06 |
10.88 |
|
|
|
(`in crore) |
| Particulars |
2018-19 |
2017-18 |
Variation (per cent) |
| Other Operating expenses |
1289.16 |
1086.33 |
18.67 |
| Total Non-interest expenses |
3083.33 |
2704.39 |
14.01 |
| Total Expenses |
10199.45 |
10411.07 |
(2.03) |
| Operating Profit |
2197.61 |
2191.40 |
0.28 |
| Provisions and |
|
|
|
|
6981.49 |
3337.05 |
109.21 |
| Contingencies |
|
|
|
| Net Profit/(Loss) |
(4783.88) |
(1145.65) |
317.57 |
| 2.11 financial ratios |
|
|
| Particulars |
2018-19 |
2017-18 |
| EPS (? ) |
(14.26) |
(8.98) |
| Cost to Income Ratio (percent) |
58.39 |
55.24 |
| Return on assets (percent) |
(3.01) |
(0.73) |
| Return on equity (per cent) |
(207.99) |
(42.43) |
| Book value per share (? ) |
10.24 |
23.73 |
| Profit per Branch(` in lakh) |
(261.13) |
(62.06) |
| Profit per employee ( ` in lakh) |
(37.05) |
(8.86) |
| Business per Branch (` in crore) |
127.79 |
126.56 |
| Business per employee (` in crore) |
18.13 |
18.07 |
| Interest income as per cent to Average working funds |
6.82 |
7.03 |
| Non-Interest income as per cent to average working funds |
0.97 |
0.95 |
| Net Interest Margin (per cent)* |
2.53 |
2.32 |
| Operating Profit as per cent to average working Funds |
1.38 |
1.39 |
| Staff expenses as a percent to average working funds |
1.13 |
1.03 |
| Net worth (` Crore) |
5859.73 |
6159.92 |
| CRAR (%) (Basel III) |
11.86 |
11.00 |
| Of which, Tier I CRAR (%) (Basel III) |
9.91 |
9.01 |
* Calculated on the basis of average interest earning assets.
2.12 Capital from Government of India
The Government of India has infused total additional capital of
` 4703 crore in two tranches; `4498 crore on 31.12.2018 and `205 crore on 21.02.2019.
2.13 Networth
The Bank's Net Worth stood at ` 5859.73 crore as on 31.03.2019 as against ` 6159.92
crore.
2.14 Capital Adequacy ratio
The Capital Adequacy ratio stood at 11.859 % as on 31.03.2019, against the minimum of
10.875% (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity
Tier 1 Ratio stood at 9.883%.
2.15 Dividend : Your Board do not propose any dividend for the FY 2018-19, as the
Bank has incurred loss.
3. Resources: Branch network, HUMAN resources, IT infrastructure, customers
responsiveness AND others:
3 .1 Branch/ATM Network
As on 31.03.2019, the total branch network comprised of 1832 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, Small Scale Industry and Hi-tech agriculture, Pension Payment, Self
Help Groups etc.
Area wise classification of branches as on 31.03.2019 is given in the table below:
| Classification |
As on 31.03.2019 |
As on 31.03.2018 |
| 1 Rural |
615 |
616 |
| 2 Semi-Urban |
426 |
427 |
| 3 Urban |
325 |
329 |
| 4 Metro |
466 |
474 |
| Total |
1832 |
1846 |
As part of Bank's endeavor to curtail its operating expenses, Bank has merged 14
branches during the year, which were in close vicinity of each other, ensuring that no
discomfort was caused to the customers.
ATM NETwOrk
|
31.03.2019 |
31.03.2018 |
| Offsite |
552 |
559 |
| Onsite |
1306 |
1305 |
| Total |
1858 |
1864 |
3.2 Human resources Management
The Bank has put in place a comprehensive HRM Policy 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 2018-19 the Bank has recruited employees as under:
520 Officers in Scale I, 4 Security Officers, 1 Fire Engineer, 17
Chartered Accountants 4 Civil Engineers, 2 Electrical Engineers in Scale II, 2 Credit
Risk Officers, 1 Market Risk Officer, 1 Civil Engineer, 1 CM Balance Sheet, 7 Officers for
Project Apprisal, in Scale IV.
The Bank has also recruited 290 Clerks.
During the year, 1044 employees ceased to be in service on account of
retirement, VRS, resignation, termination etc. and death.
Inter scale promotions of officers were carried out during 2018-
19. Following number of candidates were promoted.
| JMGS-I TO MMGS-II |
MMGS-II to MMGS |
MMGS-III TO SMGS- |
SMGS- IV TO |
SMGS-V TO SMGS- |
SMGS-VI TO TEGS- |
|
III |
IV |
SMGS-V |
VI |
VII |
| 1080 |
103 |
103 |
35 |
15 |
5 |
During the year 2018-19, 149 Part Time Sub-staff employees were absorbed in Sub-staff
cadre, 3 Clerks were promoted to
Officer Cadre in Scale I.
Cadre wise staff position as of 31.3.2019 with sex ratio percentage is as under:
| Category |
Male |
% |
female |
% |
Total |
| Officers |
4813 |
72.33 |
1841 |
27.67 |
6654 |
| Clerks |
2937 |
65.31 |
1560 |
34.69 |
4497 |
| Sub-staff |
1570 |
89.10 |
192 |
10.90 |
1762 |
| Total |
9320 |
72.18 |
3593 |
27.82 |
12913 |
The top three branches in disbursement and recovery of advances to SC/ST community were
awarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar. The Bank has
healthy industrial relations.
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. During the year periodical meetings were held with SC/ST/OBC Employees
Association to discuss implementation of reservation policy and other constitutional safe
guards and also to facilitate involvement in business growth.
Compassionate Appointments-
A Scheme for ‘Compassionate Appointments' / Payment of Ex-gratia lump-sum 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 lump-sum amount for the year 2018-19 is as under:
| Compassionate Appointments |
|
|
|
| Cadre |
No.of employees |
No.of employees |
Payment of Exgratia Amount paid |
| Clerk |
10 |
1 |
7,00,000/- |
| Sub-staff |
19 |
Nil |
Nil |
The Contributory Group Insurance Mediclaim Policy for all employees including
retired employees, has been renewed w.e.f. 1.4.2018 and the Sum insured for existing
employees is upto `10.00 Lacs. The details of renewal of policy are as under:
| Employees |
No.of Employees |
Premium paid |
|
|
( ` in lakh) |
| Existing |
719 |
100.48 |
| Retired |
1662 |
229.52 |
| Total |
2381 |
330.00 |
The reimbursement of examination fees & payment of cash incentive /
Honorarium in respect of courses from Indian
Institute of Banking & Finance, MBA from reputed Institutions &
CFA has been widened by adding courses in the list of courses for reimbursement of
fees; thereby making total 35 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.
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 1.4.2018 to 31.03.2019 are
as under-
| Cadre |
No. of Programmes |
Training Days |
Employees Trained |
| Officers |
197 |
584 |
5272 |
| Clerks |
115 |
329 |
2023 |
| Substaff |
57 |
133 |
1042 |
| Total |
369 |
1046 |
8337 |
3.3 Technology Initiatives
The Year 2018-2019 was a Technology Upscaling year for the Bank. The Bank had taken up
& successfully initiated / upscaled various Major IT Projects during 2018-19 which are
enumerated as under:
1. The Bank has implemented 607 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.
2. The Bank has a tie up with BSNL for upgrading the Bandwidth of the existing Leased
Lines to 2 Mbps. As on 31.03.2019, bandwidth of 1640 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 813 branches
have dual service providers.
3. Integration of SWIFT with CBS System is achieved on 27.04.2018.
4. (NCMC) – The Bank has implemented National Common Mobility Card (NCMC) using
Near Field Communication for issuance of NCMC Cards. Bank's status is Live under Closed
User Group from 08.01.2019.
5. Bank is offering corporate bill payment solution to Pune
Municipal Corporation (PMC) MSEDCL bill payments on BBPS platform.
6. Digital Media Signage System with the Queue Management System for token display with
sound announcement is made live on Pilot basis at Shivaji Nagar Branch on 16.01.2019. The
Integrated Queue Management System will be implemented across 100 branches initially.
7. 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 2016- 17, 2017-18 and recently 2018-19 as well.
8. The first PCI DSS certificate was awarded towards compliance of Debit Card
environment security to the Bank on 12.09.2014 and for subsequent years on 12.09.2015,
12.09.2016, 12.09.2017 and recently on 06.11.2018.
9. Next generation Corporate Internet Banking Module is implemented w.e.f. 05.09.2018
for better customer experience.
Each Corporate user can have user specific per transaction, per day limit option
available. Corporate Users can also avail View only facility for "Enquiry and
Statement Viewing". Automated Internet Banking Password Generation and Forgot
Password functions are available.
10. The Bank is actively promoting BHIM Aadhaar Pay payment channel and 29205 Merchants
are on-boarded as on 31.03.2019.
11. Centralized e-Surveillance system is implemented at 15 more ATMs taking the total
count to 475 ATMs being covered under this system; ensuring safety and security of ATMs
& Customers.
This will be extended across more ATMs shortly.
12. Bank has implemented Public Financial Management System (PFMS) which is used by
Government Agencies to make payments directly into the recipients Bank Account. As on
31.03.2019, Bank had 46323 Accounts under PFMS & the total balance in these accounts
was `4936.11 Crore 13. The Bank issues Rupay and Visa debit cards in different variants
such as Visa EMV, Rupay Classic, Rupay Platinum etc. to its CASA Accounts. As per RBI
guidelines, all the cards are EMV Chip based. The total card base of the bank stands at
52.83 Lakh as on 31.03.2019
14. 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.
15. NPA and recovery: Following initiatives were undertaken: a. Mobility
application for Branches/Zones/Head Office to assist in daily monitoring of NPA. b.
Internal web based applications for credit monitoring/ recovery of NPA, potential NPAs for
current month, fresh slippages for current month, SMA0 , SMA1, SMA2, Stock statement
expiry cases, working capital limit expiring in next 30 days, time barred documents,
turnover comparison on working capital, security expired and security not available cases,
insurance not available or expired, valuation expired, various exceptions in case of data
elements related to CIBIL rejections, BG expired etc., c. Various internal dashboards on
details of progress in NPA Recovery, Sector Wise Position of NPA and Recovery, various
schemes on recovery. d. Online OTS Portal e. Asset Classification and provisioning in CBS
for managing the IRAC movement on daily basis as well as monthly stamping f. SMS to
borrowers for EMI reminders.
16. Bank has robust Information Security Management System (ISMS) framework in place.
Bank has also implemented major security initiatives recommended by Gopalakrishna
Committee for internal and external customers.
17. 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 Behavioural 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.
18. The Bank has initiated implementation of Loan Life Cycle Management software
(LLMS) with Document Management System (DMS) and Early warning Signals (EwS) solutions.
19. CBS Front End version upgradation with enhanced features has been initiated for
better user experience and resolving data integrity issues 20. Mobile based CTS
application is user friendly and cost effective solution. POC was successfully implemented
at three branches and these three branches are linked to Service Branch Chennai i.e. South
Grid of CTS where the application provider (Mobile based CTS) is providing the services to
the Bank.
21. The Bank received IBA Banking Technology award for Best IT Risk Management and
Cyber Security Initiatives under Medium Banks 22. Honeypot solution: Bank has taken
initiative and deployed deception technology as a part of Proof of Concept (POC) for
active threat hunting
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. 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 customers
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.
| Particulars |
2018-19 |
2017-18 |
| 1 Customer complaints at the beginning of the year |
388 |
54 |
| 2 Complaints received during the year |
8395 |
8348 |
| 3 Complaints redressed during the year |
|
|
|
8638 |
8014 |
| 4 Complaints pending at the end of the year |
|
|
|
145 |
388 |
3.5 kYC/ AML
Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards / Combating
of Financing of Terrorism (CFT) and Obligation of Bank under Prevention of Money
Laundering Act (PMLA) 2002.
The Bank has Board approved KYC-AML-CFT Policy in place. The said Policy is the
foundation on which the Bank's implementation of KYC norms, AML standards and CFT measures
is based. The full KYC compliance entails staff education as well as customer education
for which the following measures are taken by the Bank.
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. Bank has also
constituted sub-committees headed by Top Management of Bank.
The Bank is compliant to the RBI guidelines on disclosure requirements under Basel III
Capital Regulations.
3.7 Brand Image
With a view to develop Brand Image of Bank, Bank publicizes its various products and
sponsors with social cause.
Bank has extended Donations/Sponsorships to NAR (National Academy of RUDSETI) Building
at Bangalore. Being in loss, Bank could not perform CSR Activities during the year.
However, Bank was aggressive in publicity of Bank's products in all the media vehicles, be
it Print, Electronic, Radio, or Outdoor. Sponsorships in Property Retail Expos and others
have enhanced the Bank's brand image and in reaching to new customers.
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 responsibilities of Branches are;
All branches of banks in all parts of the country should provide the customer
services, more actively and vigorously to the members of public.
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 queue for senior citizens
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
2019, aggregates to ` 35431.14 crore constituting 36.13% of the Adjusted Net Bank Credit
(ANBC).
4.2 Agriculture
Bank disbursed ` 6372 Crore for agriculture and allied activities during the year
2018-19. The total outstanding advances to agriculture sector reached a level of ` 15120
Crore as on 31.03.2019 (growth of 1.74 %). Bank focused on growth of investment credit
under Agriculture during the year 2018-19 and disbursed ` 2456 Crore. 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. Bank has entered into an
Agreement for Credit Guarantee with Small Farmers Agri-
Business Consortium (SFAC) for financing to Farmer Producer
Organizations (FPOs). Bank is successfully implementing farm loan waiver scheme of Govt
of Maharashtra. Till 31st March 2019, Bank credited ` 1418 crore to 2.39 lakh farmers loan
accounts under the aforesaid scheme. The Bank undertook awareness/sensitization programmes
for all 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. Bank has issued total 126509 Kisan Credit Cards to farmers.
Credit flow to MKCC beneficiaries has reached to a level of`8632 Crore as on 31.03.2019.
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. The Bank's lending to Micro, Small and
Medium Enterprises (Priority) is `14664 Crore (including investments) as on 31.03.2019.
Advances to Micro enterprises under priority are 7.19 % of ANBC against RBI target of 7.50
% as of March 2019.
For promoting finance under this category, Bank has entered into strategic tie up
arrangements with Truck / Vehicle / Passenger car manufacturers. Bank has also entered
into MoU with "Bhartiya Yuva Shakti" Trust and "de-Asra" foundation
for Credit facilitation and hand holding of the Micro entrepreneurs especially under Women
and SC/ST categories.
Centralized Processing Cells have been set up at all Zonal
Offices for speedy disposal of MSME proposals.
4.3.1 MUDrA
Bank is giving special attention to credit needs of the non-farm enterprises engaged in
manufacturing, trade and services upto `10 Lakh. With the introduction of Pradhan Mantri
MUDRA Yojana (PMMY) Bank is giving special attention to this segment. Loans given to
this segment for income generation are known as MUDRA loans under Pradhan Mantri MUDRA
Yojana (PMMY) and branded accordingly.
Bank sanctioned ` 2130 Crore under PMMY against the target of ` 2550 Crore as on
31.03.2019. Bank achieved 83.53% of target allotted by Government under PMMY.
Bank has launched MUDRA Card on 16.9.2015 and till date issued 6852 MUDRA Cards as on
31.3.2019.
4.3.2 Coverage under CGTMSE Scheme
Under Credit Guarantee Fund Scheme for Micro, Small and Medium Enterprises of
Government of India credit facilities up to `200.00 lakh are covered, wherein no
collateral security and third party guarantee are insisted by the Bank. The Bank has
sanctioned loans of ` 321.52 Crore to 1562 borrowers under this scheme up to March 2019.
Bank has on boarded as Financier on the PSB loan portal, a new initiative of the Govt. of
India during the financial year and sanctioned 738 cases amounting ` 231 crore.
Bank has implemented the MSME Restructuring guidelines issued by Reserve Bank of India
and have restructured 7556 accounts amounting to `412 crore.
4.3.3 Banks exposure to select segments
|
|
|
( ` in Crore) |
| Sector |
As on 31.03.2019 |
As on 31.03.2018 |
% increase |
|
|
|
(+/-) |
| 1 Micro / SHG Finance |
208 |
151 |
37.74 |
| 2 Weaker Sector |
11423 |
11324 |
0.87 |
| 3 SC/ST beneficiaries |
1667 |
2333 |
-28.54 |
| 4 Minority Community |
2924 |
2887 |
1.28 |
5. MPO I RTANT 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 is ` 18806 Crore.
|
|
(` in Crore) |
| Scheme |
Brief Description |
Portfolio as of Mar'19 |
NPA % |
| 1 Maha Super Housing Loan Scheme |
Housing Sector being the thrust area, Bank has various Housing Loan schemes in place
to meet the needs of all economic segments. |
12052.94 |
4.41 |
|
Bank offers housing loan for "purchase / construction of new / existing house /
flat, repairs / renovation / alteration of existing house / flat, purchase of plot and
construction thereon" |
|
|
| 2 Maha Super Car Loan Scheme and M a h a b a n k 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). |
1317.35 |
2.97 |
| 3 Model Education Loan Scheme |
Bank is implementing Model Education Loan Scheme as per IBA guidelines and provides
hassle free Education loan to all meritorious and deserving students (Indian National) for
pursuing higher studies / education in India and abroad. Bank has 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 as an offering for the premier
institutions and to tap the available opportunities under the segment. Bank is also
focusing on tie ups with premier institutions to have continuous flow of business in the
retail portfolio. |
1086.52 |
6.90 |
| 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, other domestic needs etc. |
146.69 |
0.19 |
| 5 Maha bank 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". 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 and other domestic
needs etc |
235.70 |
0.78 |
| 6 Maha bank 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. |
106.69 |
2.38 |
| 7 Maha bank 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". |
526.48 |
1.12 |
5.2. Centralized Processing of loans
Bank has established Centralized Processing Cells (CPCs) for processing and sanctioning
commercial advances at all its 30 Zones to improve the TAT in facilitating timely credit.
In addition, total 31 CPCs for retail credit are functioning in all Zones. In future
Bank will increase the number of CPC 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
There was an increase of 18% in Internet Banking, 28% in Phone Banking and 33% in SMS
banking over the previous year.
With continuous follow up and increase in net security through the Mahasecure for IB
users, substantial rise in users/online transactions is expected.
In the current financial year over 11 crore digital transactions were carried out
through various channels.
5.4.2 Mobile Banking
1. Maha Mobile functionality has been customized and simplified for increasing
enrolments.
2. A user manual on Internet Banking & New Maha Mobile functionality is prepared
& sent to field staff for ready reference & marketing of the technology based
products.
6. CORPORATE SOCIAL RESPONSIBILITY:
The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune district of
Maharashtra have been undertaking various rural developmental activities for the benefit
of farmers' viz. Vermi compost, re-development of saline Soils, soil testing etc. Bank has
established Soil Testing Lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil Testing
Laboratory has analyzed 5506 Soil and Water samples in the year 2018-19 and accordingly
counseling is done. Farmers from the districts of Pune, Ahmednagar, Sholapur and Satara
are taking benefit of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF)
established by the Bank, undertakes various projects and village improvement programmes.
MARDEF is imparting training to farmers on various subjects in agriculture. Trust has
implemented 156 training programmes for farmers at RDC Bhigwan and Hadapsar and has
benefited 10753 farmers from April 2018 to March 2019.
The Bank has established Seven Mahabank Self Employment Training Institutes (MSETI) for
providing training to rural youth and women to enable them to acquire skills for
self-employment through small business enterprises. The Institute has seven centers
located at Pune, Nagpur, Aurangabad, Amravati, Jalna, Thane and Nasik. The Institute has
so far conducted
1203 training batches & imparted training to 30307 educated unemployed youths. The
settlement rate is 70 per cent.
Gramin Mahila Va Balak Vikas Mandal (GMBVM), an NGO formed by Bank of Maharashtra is
actively involved in formation, nurturing, training and ensuring linkage of SHGs to Bank
Credit.
The Bank has opened Financial Literacy Centers in seven Lead
Districts namely Pune, Nasik, Aurangabad, Satara, Jalna,Thane and Palghar for creating
awareness about banking schemes.
FLCCs have contacted 77141 beneficiaries during FY 2018-19.
Rural Self Employment Training Institutes (RSETIs) have conducted 198 training batches
and trained 5061 candidates during FY 2018-19.
7. LEAD BANK SCHEME:
7.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of
Maharashtra State 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.
7.2 State Level Bankers' Committee
The Bank is the Convenor of State Level bankers' Committee (SLBC) for the State of
Maharashtra and prepares State Annual Credit Plan. The Priority Sector plan for the year
2018-19 was for ` 4,34,591 crore which is 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 16,700 bank branches in the state.
SLBC has always been very proactive in the event of natural calamities if any, by
issuing necessary guidelines in respect of relief measures, organizing special meetings
and guiding the members whenever necessary.As SLBC convener, Bank of
Maharashtra coordinated implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the
State of Maharashtra. A total of 248 lakh accounts have been opened in the State. The
State has already been declared as saturated for the purpose of opening of accounts.
However, the process of opening of accounts is continued. SLBC also coordinates
implementation of other Social Security schemes of the Central Government in the State.
S L B C Maharashtra has received award for highest Aadhar seeding of PMJDY accounts
from Department of Financial Service, MOF New Delhi.
7.3. FINANCIAL INCLUSION / PMJDY
| Scheme |
Particulars |
2018-19 |
2017-18 |
| FI Plan |
No of Transactions by BCA (in lakhs) |
133.17 |
110.74 |
|
Amount of transactions (` in crore) |
7546.75 |
5764.23 |
| PMJDY |
No. of PMJDY accounts (in lakhs) |
56.67 |
51.57 |
|
Of Which Aadhaar Seeded |
50.36 |
42.57 |
|
% OF Aadhaar Seeding |
88.87 |
82.55% |
|
Of Which Mobile Seeding |
43.84 |
38.97 |
|
% of Mobile Seeding |
77.36 |
75.57% |
|
Balance in PMJDY A/c (in crore) |
1466.43 |
1148.93 |
|
Average Bal. per account actual |
2587 |
2228 |
|
Zero Bal. PMJDY A/cs (in lakh) |
15.35 |
16.02 |
The Bank has a full-fledged call center with toll free number 18001022636 for redressal
of PMJDY grievances.
The Financial Literacy material has been prepared in vernacular languages and supplied
to all Branches / Bank Mitra for supplying the same to accountholders during FLC camps.
Financial literacy camps are organized in different schools in districts of
Maharashtra. All skilling centers /ITI's are mapped under financial literacy project Bank
has been awarded for excellent performance in the field of financial inclusion from
prestigious institutes like IBA, DFS, and Economic Times.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS :
8.1 Performance of regional rural Bank
Maharashtra Gramin 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 31.3.2019 stood at 413 in its area of
operation covering 17 out of 36 districts of Maharashtra state.
All 413 branches and controlling offices are now under CBS.
MGB had opened 5 new branches during the year 2017-18.
Performance highlights are as under:
Bank has achieved total business of `15690.86 Crore.
Bank for the second time in a row crossed `200.00 Cr operating profit by
achieving`229.96 Cr operating profit.
Net profit stood as` 86.52 Crore as on 31.03.2019.
Bank has achieved most of the target under MoU DAP given by sponsor Bank for the
financial year 2018-19 in the major key performance parameters, as under:
|
(Amount in Crore) |
| Performance Parameter |
Target fY |
Actual as on |
|
2018-19 |
31.03.2019 |
| 1 Growth in Total Deposit (%) |
12.51 |
17.38 |
| 2 Cost of Deposit (%) |
5.01 |
5.02 |
| 3 Cost of Funds |
5.14 |
5.10 |
| 4 Operating Profit |
200.00 |
229.96 |
| 5 Net Profit before tax |
85.00 |
86.52 |
| 6 Non-Interest Income |
91 |
75.87 |
| 7 Operating Profit per employee |
0.118 |
0.139 |
| 8 Operating Profit per Branch |
0.487 |
0.557 |
| 9 Net Profit per employee |
0.050 |
0.052 |
| 10 Net profit per branch |
0.207 |
0.209 |
| 11 Cost to Income Ratio |
50.37 |
47.38 |
| 12 Net Interest Margin |
3.51 |
3.55 |
| 13 Closing NPA |
390.00 |
291.88 |
| 14 Recovery in Write off |
4 |
3.13 |
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 13.71 lakh PMJDY
accounts have been opened till 31.03.2019 and 8.53 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 GoI, DFS.
Highlights during the Year 2018-19
1. On boarding to Central KYC Registry (CKYCR), on boarding to BHIM UPI platform.
2. Establishment of payment acceptance infrastructure and digital payments in rural are
through micro ATMs, BHIM Aadhar payment devices.
3. Dual authentication at BC points for SHG transactions.
4. Bank has introduced Two "Mobile ATM Van" under financial inclusion funds
of NABARD.
5. Setting up of Aadhar Enrollment centers.
6. Bank implemented AML, KYC & CFT module under PMLA- 2012.
7. Host to Host (H2H) implementation of NACH.
8.2 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
1008 Public & Private Trusts. During the year, additional 32 Wills were added
making total 1155 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.
During the Current FY Company has extending approx. `25 lacs to nearly 100 beneficiaries.
The net profit of METCO for F.Y. 2018-19 was` 82.74 lakh.
9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY:
During the year 2018-19, the Bank has achieved various remarkable achievements
in the fieldof Official Language implementation:
1. Bank was awarded "Rajbhasha Kirti Puraskar" for better implementation of
Rajbhasha Hindi, which is the highest award for Rajbhasha. Shri A. C. Raut, Executive
Director, Bank of Maharashtra received this prestigious award at the hands of Hon'ble Vice
President of India, Shri M. Venkaiah Naidu in a grand function arranged at Vigyan Bhawan,
New Delhi on 14th September, 2018.
2. Bank was awarded prestigious Skoch Order-of-Merit Award on 22 December, 2018 at New
Delhi for Better Implementation of Rajbhasha. In Banking Industry, our bank is the first
to receive this Award for Hindi Implementation.
3. The Town Official Language Implementation Committee,
Mumbai has secured Third Prize from the Rajbhasha Vibhag, Ministry of Home Affairs,
Government of India for better implementation of Hindi. Our Bank is the convenor Bank for
the committee.
4. Bank was awarded "Vishesh Puraskar" by the Mumbai based prestigious
Institution ‘Aashirvad' for better use of Hindi during the year.
5. Various Town Official Language Implementation
Committees convened by other Banks have awarded Kolkata, Raipur, Jaipur and Amaravati
Zones for excellent implementation of Official Language.
6. Hindi day function was arranged at Head Office, Pune on
09th October, 2018. Shri A. C. Raut, Executive Director of the Bank presided over the
function. Shri Raza Murad, renowned Hindi actor and social worker was the
Chief Guest. Shri R. P. Marathe, MD & CEO, Shri R.K. Gupta, Executive Director
& Shri Rajkiran Bhoir, General Manager were also present in the function. Winners of
the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the
function.
7. An All India Rajbhasha Seminar was organized in Pune for all the Hindi Officers of
the Bank. Shri R. P. Marathe, Managing Director & CEO of the Bank inaugurated the
seminar.
8. 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
9. Bank of Maharashtra is the convenor 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.
10. Committee of Parliament on Official Language visited our Delhi Zonal Office, Indore
Zonal Office, Mumbai Zonal Office & Rajkot branch, (Ahmedabad Zone) during the year
and reviewed Official Language Implementation work of the
Bank. The honorable members of the Committee expressed their satisfaction regarding
progressive use of Hindi and the implementation of new initiatives by the Bank.
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:-
1. 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.
2. Create a secure, safe and conducive environment for Staff, visitors and customers to
conduct smooth and normal banking business.
3. Measures to counter manmade disasters and natural calamities.
During the FY 2018-19, proactive steps have been 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 2018-
19. 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
31.03.2019:
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; and
The accounts have been prepared on a going concern basis.
13. CHANGES IN THE Board OF DIRECTORS:
During the year 2018-19, the following changes took place in the Board of Directors:
Shri R. Thamodharan was reappointed as Shareholder Director of Bank w.e.f
30.06.2018.
Shri A.S. Rajeev took charge as Managing Director & CEO of the Bank w.e.f
02.12.2018 in place of Shri R.P.
Marathe, who completed his term as MD & CEO of Bank on 30.11.2018.
Shri Hemant Tamta was appointed as Executive Director of the Bank by the Central
Government w.e.f 31.12.2018 in place of Shri R.K. Gupta, who completed his term of
Executive Director of Bank on 30.12.2018.
Dr. Archana Dholakia was reappointed by Central Government as Director of Bank
w.e.f 01.03.2019. She completed her earlier term as Director of Bank on 27.01.2019.
14. BUSINESS RESPONSIBILITY REPORT:
As per the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2018-19 of the
Bank has been hosted on the Bank's website i.e www.bankofmaharashtra.in. Any member
interested in obtaining a physical copy of same may write to the Company Secretary of the
Bank.
15. ACKNOWLEDGEMENT:
The Board of Directors wishes to express sincere gratitude to Government of India,
Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and
Development Authority, Indian Banks' Association, Stock Exchanges and Depositories for
their valuable advice and support; to the customers and shareholders for their patronage;
to the correspondents and associates for their co-operation 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 |
(A.S. RAJEEV) |
| Date : 29th April, 2019 |
Managing Director and CEO |
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