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 |
  Â