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, 2021.
1. MANAGEMENT DISCUSSION AND ANALYSIS
1.1 Economic and Banking Scenario 2020-21
The global economy witnessed an unprecedented economic downturn in FY 2020-21 due to
Covid-19 pandemic. The lockdowns and social distancing norms have reduced the growth
momentum. Global economic output was estimated to fall by 3.5 percent in 2020. Indian
economy also witnessed contraction in gross domestic product (GDP) for the first time
since independence. Calibrated fiscal and monetary support was provided, cushioning the
vulnerable during the lockdown and boosting consumption and investment during the
unlocking. A favorable monetary policy ensured abundant liquidity and immediate relief to
debtors while unclogging monetary policy transmission. India's GDP due to pandemic
contracted by
23.90% in Q1 and 7.50% in Q2 of FY21. As the first wave of
Covid-19 pandemic eased and economy was slowly opened up India's GDP grew by 0.40
percent YoY in Q3 mainly attributed to improvement in Consumer Spending, Government
Capital Expenditure and expansion in Construction Sector.
Retail inflation firmed up to 6.16 percent in FY21 side disruptions caused by the
pandemic. However, it reduced to 4.29 percent in April 2021 owing to decrease in food
prices. Monetary policy remained accommodative during the year. RBI policy repo rate was
cut by 115 bps and liquidity support by
RBI during 2020-21 was significantly enhanced. Meanwhile, year on year bank credit
growth (5.6 percent) continued to lag behind deposit growth (11.4 percent) in FY21.
1.2 Outlook for 2021-22
Multiple vaccine approvals and the launch of vaccination drives in many countries have
raised hopes for less impact of the pandemic. WEO forecast suggest stronger-than-projected
momentum on average across regions in the second half of 2020. The sizable fiscal support
announced for 2021 in some countries, including most recently in the United States and
Japan, will help lift economic activity among advanced economies. With respect to Indian
economy the larger than expected magnitude of Covid-19 second wave has posed a serious
threat to the faster recovery of economic activities. As of now the outlook is hazy and
will largely depend on how the second wave pans out. With the Covid-19 second wave
starting to wane and availability of sufficient number of vaccines from
September 2021, growth in second half of FY22 is likely to pick up. Indian GDP is
expected to grow around 10 percent in FY22 and RBI is likely to continue with its
accommodative stance.
2. PERFORMANCE HIGHLIGHTS 2020-21 i. Total Business of the bank has
increased from
Rs.2,44,955 crore as on 31.03.2020 to Rs.2,81,659 crore as on 31.03.2021. Business of
the Bank showcased annual growth of 14.98%. ii. Total deposits of the bank increased from
Rs.1,50,066 crore as on 31.03.2020 to Rs.1,74,006 crore as on 31.03.2021. Total deposits
have showcased annual growth of 15.95%.
iii. CASA deposits have increased form Rs.75,475 crore as on 31.03.2020 to Rs.93,945
crore as on 31.03.2021 showcasing annual growth of 24.47%.
iv. Gross advances have increased from Rs.94,889 crore as on 31.03.2020 to Rs.1,07,654
crore as on 31.03.2021.
Gross Advances have shown year on year growth of 13.45%. v. Operating Profit increased
39.01% to Rs.3957.68 crore in year ended 31.03.2021 from Rs.2847.06 crore in year ended
31.03.2020. During the same period Net Profit increased 41.61% to Rs.550.25 crore from
Rs.388.58 crore.
2.1 Sectoral Deployment of Credit
| Percentage to total O/s |
O/s as on 31.03.2021 (in Rs.Crore) |
Percentage to total O/s |
O/s as on 31.03.2020 (in Rs.Crore) |
Percentage to total O/s |
| Industry Of which |
34,129.68 |
31.70% |
30,113.57 |
31.74% |
| i. Infrastructure |
14,347.11 |
13.33% |
7,370.82 |
7.77% |
| ii. Chemicals & Chemical Products |
1,121.67 |
1.04% |
1,430.82 |
1.51% |
| iii. Petroleum |
588.66 |
0.55% |
688.76 |
0.73% |
| iv. Iron and Steel |
859.89 |
0.80% |
1,609.59 |
1.70% |
| v. NBFCs and Trading |
9,232.69 |
8.58% |
10,759.03 |
11.34% |
| vi. Engineering |
1,245.15 |
1.16% |
2,336.55 |
2.46% |
| vii. Construction |
80.94 |
0.08% |
1.78 |
0.00% |
| viii. Other Industries |
6,653.57 |
6.18% |
5,916.35 |
6.24% |
| Agriculture |
16,201.98 |
15.05% |
14,384.66 |
15.16% |
| MSME |
23,132.87 |
21.49% |
17,163.92 |
18.09% |
| Housing |
17,909.07 |
16.64% |
14,915.71 |
15.72% |
| Education |
1,287.66 |
1.20% |
1,227.70 |
1.29% |
| Exports |
1,310.99 |
1.22% |
1,167.11 |
1.23% |
| Commercial Real estate |
1,508.58 |
1.40% |
1,611.34 |
1.70% |
| Gross Advances |
1,07,653.77 |
|
94,888.98 |
|
2.2 Asset 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 so as to make
focused follow up.
Further, Bank has established Stressed Assets
Management Vertical by way of a separate department at Head Office under which Bank has
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. Focused follow up is
undertaken to improve NPA recovery.
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 ensured. This has resulted in improving recovery
and upgradation of NPAs.
The Bank has also set up separate Cells at Head Office for identification of Wilful
Defaulters and gearing up actions under DRT/ SARFAESI Acts.
Bank has been implementing suo-moto non-discriminatory and non-discretionary One Time
Settlement (OTS) schemes. During 2020-21 the Bank introduced following OTS schemes:
a. Maha Rahat Yojana 2020-21: Scheme for the settlement of NPA accounts in
Doubtful-I,
Doubtful-II, Doubtful-III, Loss and TWO category having Ledger Balance up to Rs.1.00
crore as of 31.03.2020. This scheme was effective from 01.06.2020.
b. Maha Samadhan Yojana 2020-21: Scheme for the settlement of NPA accounts
under:
i. Doubtful-I, Doubtful-II, Doubtful-III, Loss and TWO category having Ledger Balance
above Rs.1.00 crore and up to 25.00 crore as of 31.03.2020.
ii. Doubtful-III, Loss and TWO category having Ledger Balance above Rs.25.00 crore and
up to 50.00 crore as of 31.03.2020.
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 Insolvency &
Bankruptcy Code 2016 against various large NPA borrowers.
Position of Non- Performing Assets was 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 Treasury and
International
Banking Branch (TIBB) at Mumbai as "A" category Branch. The
Merchant Business for FY 2020-21 stood at Rs.30,451.46 crore. The performance during
the year 2020-21 can be seen below:
| Particulars |
2020-21 |
2019-20 |
Percentage of (+/-) |
| Total FEX Business Turnover |
634389.59 |
568236.68 |
11.64% |
| Merchant Business |
|
|
|
2.4 Investment
The breakup of Investments into SLR & Non-SLR investments is given below:
The Gross Investments as on 31.03.2021 stood at
Rs.68,646.70 crore, of which Rs.52,196.56 crore are SLR securities and Rs.16,450.14
crore are Non-SLR Securities. The excess SLR securities as on 31.03.2021 stood at
Rs.21,498.85 crore.
The net investments (net of provisions) stood at Rs.68,111.65 crore as on 31.03.2021 as
compared to Rs.57,740.85 crore as on 31.03.2020. Investments under
Held to Maturity (HTM) category consist of 69.35%, while Available for Sale (AFS)
comprised of 30.65% of total investment portfolio as of 31.03.2021. The net interest
income from investment activity stood at Rs.4,158.32 crore in year ended 31.03.2021 as
compared to Rs.4,203.89 crore during the last year (down by 1.08%).
The Non-Performing Investments stood at Rs.446.97 crore as on 31.03.2021.
2.5 Merchant Banking
The Bank handled 44 issues (previous year 63 issues) of Commercial Paper amounting to
Rs.32,745 crore (previous year Rs.22,220 crore) for its clients as an Issuing and Paying
Agent (IPA) during the year.
2.6 Borrowings
The borrowing of the Bank as on March 31, 2021 stood at Rs.4238.75 crore including
re-finance as under:
| Particular |
Amount as at 31.03.2021 |
Amount as at 31.03.2020 |
Percentage of (+/-) |
| Total Borrowing of which Borrowing RBI under |
4,238.75 500.00 |
3,670.03 478.00 |
15.50% 4.60% |
| LAF of which Borrowing Market REPO |
0.00 |
0.00 |
– |
| Of which Borrowing TRePS (G-Sec) |
0.00 |
0.00 |
– |
| Of which Refinance from |
|
|
– |
| NABARD |
0.00 |
0.00 |
– |
| EXIM BANK |
0.00 |
0.00 |
– |
| NHB |
0.00 |
0.00 |
– |
| MUDRA |
0.00 |
0.00 |
– |
| SIDBI |
51.55 |
85.75 |
-39.88% |
| Borrowings in the form of Bonds & debentures capital instruments |
3,605.70 |
3,100.00 |
16.31% |
| Borrowings outside India |
81.45 |
6.23 |
1207.38% |
| Others |
0.05 |
0.05 |
0.00% |
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).
Bank has introduced ASBA through net-banking and
UPI.
2.8 Bancassurance
Bank is corporate agent for carrying out Bancassurance business under all three
segments i.e. Life Insurance,
General Insurance and Health Insurance.
Performance during the year 2020-21
| Insurance |
No. of Policies |
Premium ( ` Cr) |
Commission (Rs.Cr) |
| Life |
8,728 |
46.75 |
8.65 |
| General |
1,35,996 |
49.84 |
6.06 |
| Health |
55,518 |
46.18 |
6.92 |
| Total |
2,00,242 |
142.77 |
21.63 |
2.9 Government Business
During the Year 2020-21, 4,67,399 Challans of direct taxes and 31,963 Challans of
Indirect taxes were collected by the branches. Total Commission to the tune of Rs.3.74
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 107307 at Central government, Defense, Railway and Telecom
pensioners at central Pension Processing Cell (CPPC), Pune. The commission on Government
Business (Pension) for the Year 2020-21 is Rs.10.81 Crores.
Bank has opened 1,14,517 new Public Provident fund
(PPF) accounts in FY 2020-21.
2.10 Income, Expenditure and Profitability
The total income of the Bank stood at Rs.14,493.80 crore in FY 2020-21 as compared to
Rs.13,144.68 crore in FY 2019-20. The detailed income/expenditure components are as under:
| Particulars |
2020-21 |
2019-20 |
Variation ( in %) |
| Interest / discount on advances / bills |
7153.93 |
6409.27 |
11.62% |
| Income on investments |
4153.4 |
4202.69 |
-1.17% |
| Interest on interbank lending & other Interest |
561.21 |
883.49 |
-36.48% |
| Total interest income |
11868.54 |
11495.45 |
3.25% |
| Non-interest income |
2625.26 |
1649.23 |
59.18% |
| Total Income |
14493.8 |
13144.68 |
10.26% |
| Interest on deposits |
6525.95 |
6757.19 |
-3.42% |
| Interest on borrowings |
49.65 |
20.56 |
141.49% |
| Other Interest expenditure |
395.47 |
438.90 |
-9.90% |
| Staff expenses |
2255.21 |
1743.82 |
29.33% |
| Other Operating expenses |
1309.84 |
1337.15 |
-2.04% |
| Total Non-interest expenses |
3565.05 |
3080.97 |
15.71% |
| Total Expenses |
10536.12 |
10297.62 |
2.32% |
| Operating Profit |
3957.68 |
2847.06 |
39.01% |
| Provisions and Contingencies |
3407.43 |
2458.48 |
38.60% |
| Net Profit |
550.25 |
388.58 |
41.61% |
2.11 Financial Ratios
The various financial parameters of the Bank during the year
2020-21 can be seen below:
| Particulars |
2020-21 |
2019-20 |
| EPS (`) |
0.88 |
0.67 |
| Cost to Income Ratio (percent) |
47.39 |
51.97 |
| Return on assets (percent) |
0.30 |
0.23 |
| Return on equity (per cent) |
7.17 |
6.32 |
| Book value per share (`) |
12.22 |
11.99 |
| Profit per Branch ( Rs.in lakh) |
28.02 |
21.20 |
| Profit per employee ( Rs.in lakh) |
4.19 |
3.10 |
| Business per Branch (Rs.in crore) |
143.11 |
133.64 |
| Business per employee (Rs.in crore) |
21.45 |
19.55 |
| Interest income as per cent to |
|
|
| Average working funds |
6.42 |
6.78 |
| Non-Interest income as per cent to average working funds |
1.42 |
0.97 |
| Net Interest Margin (per cent)* |
2.84 |
2.60 |
| Operating Profit as per cent to average working Funds |
2.14 |
1.68 |
| Staff expenses as a percent to average working funds |
1.22 |
1.03 |
| Dividend (per cent) |
0.00 |
0.00 |
| Net worth (Rs.in crore) |
8019.20 |
6985.74 |
| CRAR (%) |
14.49 |
13.52 |
| Of which, Tier I CRAR (%) |
10.98 |
10.67 |
2.12 Capital
During the year, Bank has allotted 73,60,49,601 equity shares of Rs.10/- each of Bank
to Government of India at issue price of `11.29 per equity share on 25th August, 2020
against the capital infusion of Rs.831 crore. Bank also raised Tier II capital of
Rs.505.70 crore in financial year 2020-21.
2.13 Net worth
The Bank's Net Worth stood at Rs.8019.20 crore as on 31.03.2021 as against Rs.6985.74
crore as on 31.03.2020.
2.14 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 14.49% as on 31.03.2021, against the minimum
requirement of 10.87% (including CCB) prescribed by RBI in terms of Basel III norms. The
Common Equity Tier 1 capital ratio stood at 10.98%.
3. RESOURCES: BANKING OUTLETS, HUMAN RESOURCES, IT INFRASTRUCTURE, CUSTOMER
RESPONSIVENESS AND OTHERS: 3 .1 Banking Outlet/ ATM Network
As on 31.03.2021, the Bank had 1964 banking outlets spread across all the States and
six union territories as compared to 1833 as on 31.03.2020. The banking outlets comprised
of 1915 branches and 49 fixed point outlets served by Bank Mitras, named as Customer
Service Point (CSP).
During the year ended 31.03.2021 the Bank opened 86 new branches and set its footprint
in 69 additional districts. Bank also opened 46 fixed point outlets served by Bank Mitras,
named as Customer Service Points (CSP). In the same period 3 branches were converted into
CSPs and one branch was merged with another branch. During the branch conversion and
merger utmost care was taken to ensure that customers not put into any inconvenience in
availing banking services.
The branch network includes specialized branches in the area of Foreign Exchange,
Government Business, Treasury and International Banking, Industrial Finance, Micro Small
and Medium Enterprises, Hi-tech agriculture etc. Area wise classification of branches as
on 31.03.2021 is as under:
| Sr. No. Classification |
As on 31.03.2021 |
As on 31.03.2020 |
| 1 Rural |
611 |
616 |
| 2 Semi-Urban |
461 |
428 |
| 3 Urban |
372 |
331 |
| 4 Metro |
471 |
458 |
| Total |
1915 |
1833 |
ATM / CRM Network
The Bank had 1950 automated teller machines (ATMs) and cash recycler machines (CRM) as
on 31.03.2021 as compared to 1851 as on 31.03.2020. During the year ended 31.03.2021 the
Bank installed 499 CRMs.
|
31.03.2021 |
31.03.2020 |
| Offsite |
445 |
545 |
| Onsite |
1505 |
1381 |
| Total |
1950 |
1926 |
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 2020-21 the Bank has recruited employees as under:
152 Officers in Scale I, 138 Officers in Scale II (which includes 23 Law Officers, 31
IT Officers, 01 Security & 83 Generalist Officers), 29 Generalist Officers in Scale
III cadre and 220
Clerks.
During the year, 926 employees exited from service on account of retirement, VRS,
resignation, termination and death.
Inter scale promotions of officers were carried out during 2020-21. Following number of
Officers 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 |
| 55 |
259 |
87 |
20 |
12 |
4 |
During the year 57 Clerks were promoted to Officer cadre in Scale I and 221 Part time
Sub-staffs were promoted to Sub-staff cadre. The cadre wise staff position as of
31.03.2021 with gender ratio percentage is as under:
| Category |
Male |
% |
Female |
% |
Total |
| Officers |
4784 |
71.93 |
1867 |
28.07 |
6651 |
| Clerks |
2700 |
66.13 |
1383 |
33.87 |
4083 |
| Sub-staff |
1463 |
88.51 |
190 |
11.49 |
1653 |
| Part Time |
680 |
91.77 |
61 |
8.23 |
741 |
| Sub-staffs |
|
|
|
|
|
| Total |
9627 |
73.33 |
3501 |
26.67 |
13128 |
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 its
Zonal Offices.
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. Details of compassionate appointments for the
year 2020-21 is as under:
| Cadre |
Compassionate Appointments No. of employees |
| Clerk |
13 |
| Sub-staff |
10 |
| Total |
23 |
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.
Learning & Development:
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, business development, 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. To meet the requirements of the lockdown imposed due to
Covid-19 pandemic, Learning and Development (L&D) strategy has been customized for
enriching employees through virtual/ online training programs, enabling them to avail
these services from anywhere.
Training programs were also held on thrust areas like financing MSMEs, retail lending,
agriculture finance, NRI customer service, soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 01.04.2020 to 31.03.2021 are
as under-
| Cadre |
No. of Programmes Training Days |
Employees Trained |
Cadre |
| Officers |
139 |
474 |
4339 |
| Clerks |
118 |
268 |
2359 |
| Clerks |
118 |
268 |
2359 |
| Total |
285 |
794 |
7135 |
Initiatives/ Precautions taken by Bank to Protect Employees from Covid-19
In the backdrop of Covid-19 outbreak several precautionary measures in the interest of
our employees and business continuity have been taken.
i. Awareness has been created among employees/ customers by issuing various guidelines
about preventive interventions for reducing transmission of the Corona virus.
ii. In order to maintain social distancing at work place and reduce chances of
contacting Corona virus about 50% of Employees were allowed to attend office while the
remaining employees were allowed to work from home (WFH).
iii. Differently abled person employees were exempted from attending office and were
allowed to work from home. Similarly, pregnant ladies were allowed to work in the backend
so that they are least exposed. iv. Distress relief of Rs.20.00 Lakh to employees on
account of loss of life due to COVID-19 while discharging duties was provided.
v. Appealed to all employees to take COVID vaccine along with their dependents and
reimbursement of Vaccination expenses
vi. Reimbursement of hospitalization expenses for existing employees for the treatment
of COVID-19.
3.3 Technology Initiatives
The Bank had taken up & successfully initiated/ upscaled various IT projects during
2020-21 which are enumerated as under:
MeitY - Digital Score Card: As against the Ministry of Electronics & Information
Technology (MeitY) target of 42.12 crore digital transactions the Bank achieved 41.99
crore digital transactions during the year ended 31.03.2021. With respect to merchant
onboarding Bank on boarded 76,566 merchants against the target of 1,03,201 in FY 2020-21.
The MeitY monitors progress of digital payment transaction, merchant acquisitions, UPI and
AEPS system resilience on monthly basis and communicates the scores to Banks. Our bank has
maintained "Good" category performance in year ended 31.03.2021.
The Bank has implemented 1050 Self Update Pass Book Printing Kiosks and 4 off-site and
495 Onsite Cash
Recyclers at various locations across the Bank.
The Bank has a tie up with BSNL for upgrading the Bandwidth of the existing Leased
Lines to 2 Mbps. As on
31.03.2021, bandwidth of 1759 leased lines is upgraded to 2 Mbps. In order to make our
systems more resilient, bandwidth is made available from Additional Network Service
Providers. So far 1743 branches have dual service providers.
National Common Mobility Card (NCMC) 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 6,22,570 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 access 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 platform. BBPS service is also live on BC
(Business Correspondent) Channel.
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 2020-21 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. Bank have
implemented additional 5 services
& 39 features in Internet Banking and 5 services and 42 features in Mobile banking.
The share of financial transactions through ‘Home and Mobile' based channels
increased from 72% to 79%. Also bank has incorporated
Insurance and Loan module in digital channels.
The Bank is actively promoting BHIM Aadhaar Pay payment channel and 38152 Merchants are
on-boarded as on 31.03.2021.
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 CASA Accounts. As per RBI guidelines, all the cards are EMV
Chip based. The total card base of the bank increased from 76.44 lakh as on 31.03.2020 to
96.31 lakh as on 31.03.2021.
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.
White Label Payment Gateway (WLPG): Bank has introduced White label payment gateway
solution for our merchants. This solution allows Bank to provide payment processing
services using its own name.
Online Account Opening: With this solution customers are able to open limited KYC
savings bank accounts anytime anywhere at their convenience.
Tab Banking Solution: With this solution customers are able to open salary savings bank
account anytime, anywhere in assisted mode at their convenience.
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.
QUICK pay: A mobile app has been developed for merchant to do self-registration for QR
code to acquire transactions through Scan & Pay. This app also provides details of the
transactions performed by customers using
Scan & Pay.
Digital Document Execution (DDE): Bank has integrated with National E-Governance
Services Ltd (NeSL) for implementation of Digital Document Execution (DDE) Platform is a
Web API based platform/service for e-signing and e-stamping of Loan documents.
3.4 Customer Centric Initiatives taken by the Bank
i. 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), the Bank has adopted Code of Bank's Commitment
to Customer and Bank's Code of Commitment to MSMEs.
ii. 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.
iii. 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.
iv. 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. v. The
Committee of the Board on Customer Service meets on quarterly basis to monitor the quality
of the customer service, redressal of customer grievances and to ensure customer
satisfaction. vi. Bank has well established grievances redressal machinery is in place to
respond promptly to customer grievances. The Bank has internet based mechanism,
Standardized Public Grievances Redressal System (SPGRS) for lodging of 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. |
|
|
|
|
Particulars |
2020-21 |
2019-20 |
| No. |
|
|
|
| 1 |
Customer complaints at the |
296 |
145 |
|
beginning of the year |
|
|
| 2 |
Complaints received during the |
|
|
|
year |
3760 |
8740 |
| 3 |
Complaints redressed during |
|
|
|
the year |
4037 |
8589 |
| 4 |
Complaints pending at the end |
|
|
|
of the year |
19 |
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 eligible KYC documents is uploaded on the Bank's web site for the
benefitof 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 which enables it to
identify, measure, monitor and manage risk efficiently and establishes 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 Marketing & Publicity
Bank adopted an integrated marketing strategy to promote Retail, Agri, MSME products,
and IT services. Marketing Team participated in various expos in physical and virtual mode
under Retail, Agri & MSME sector for increasing our presence and business
mobilization. In FY 2020-21, Bank established its presence across all mediums like TV,
Radio, Digital, Print, OOH (out of home), etc. Bank associated with various National
& Regional TV, Radio, Digital Channels for creating awareness about Bank and
promotion of various products & services.
Bank partnered with leading property, car and e-commerce portals for promotion of
Retail, MSME products along with lead generation. In order to increase visibility of the
Bank in the areas where Bank is expanding its banking outlets, marketing team associated
with leading regional media in print, radio, TV and digital for required publicity.
With a view to establish a digital footprint across the web and in order to leverage
the power of local search for helping customers, Bank implemented Location Management
solution by updating the information of Bank Branches and ATMs (maps, reviews, contact
details, products and services) on various search engines and social network sites.
To facilitate ease and convenience for the customers, Bank revamped its corporate
website.
3.8 Citizen's Charter
The Bank has adopted the Citizen's Charter since 2000-01, which details the duties and
responsibilities of the Bank towards its customers. The charger is displayed at all the
branches and Bank's website.
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 under Priority Sector Lending
(including investments) as of March 31, 2021 stood at 58.05% of adjusted net bank
credit (ANBC) as against the mandatory target of 40%. The outstanding advances under
Priority Sector (excluding investment) as of March 31, 2021 aggregated to Rs.
49,109 crore constituting 45.62% of total credit.
4.2 Agriculture
Bank sanctioned loans of Rs.5,824 Crore for Agriculture and allied activities during
the year 2020-21. Total outstanding advances to agriculture sector reached a level of
Rs.16,202 Crore as on 31.03.2021. Total Agriculture (including investments) stood 19.91%
of ANBC. Bank has achieved all mandatory targets (on Quarterly average basis) under
Agriculture including sub-targets of Small and Marginal Farmers, Direct lending to
non-Corporate farmers, etc. during the FY 2020-21.
The bank focused on growth of Investment Credit under Agriculture during the year
2020-21 and disbursed Rs.1,799 Crore. The bank also devised Area Based schemes to meet the
needs of Agriculture and Agro based industries.
During the year 2020-21, Bank has introduced Covid relief schemes viz. Mahabank Kisan
Rahat Yojana (MKRY) for
Farmers, MKRY for Agro Based industries/ units & Mahabank
SHG Rahat Yojana to support the Borrowers to cope with the tough situation arisen due
to outbreak of COVID-19 pandemic. Bank has disbursed total loan of Rs.325 crore under the
aforesaid schemes.
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 also
successfully implemented farm loan waiver scheme of Govt. of Maharashtra. During the year
Bank credited Rs.1770 crore under MJPSKY-2019 (debt waiver scheme of Maharashtra State).
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 Credit Camps during Kharif 2020 season
across the country. During FY 2020-21 the bank sanctioned total 3.89 lakh Kisan Credit
Cards (KCC) to farmers amounting to Rs.5,557 crore. Credit flow to MKCC beneficiaries
reached to a level of
Rs.7,502 Crore as on 31.03.2021. As per regulatory guidelines, Bank has also
implemented a special Drive for issuing KCCs to farmers for Agriculture as well as for
Animal Husbandry and Fisheries. The scheme is helping small and scattered dairy farmers,
fishermen and entrepreneurs in animal husbandry to grow their business.
4.3 Micro, Small and Medium Enterprises (MSME)
MSMEs are the growth engine for the Indian economy. They have highest contribution in
generating employment both directly as well as indirectly.
During FY 2020-21, MSMEs were most affected due to
COVID-19 related distress, lockdown, labor migration etc. Bank has extended support to
MSMEs and has implemented various relief measures given to MSME borrowers by Government of
India and the Reserve Bank of India.
i. Moratorium on repayment of instalments granted to the borrowers whose repayment were
falling due between 01.03.2020 and 31.08.2020.
ii. For working capital limits extended in terms of CC/OD, interest during the above
moratorium period was carved out as FITL. iii. Additional funding extended under Emergency
Credit
Line Guarantee Scheme (ECLGS) to eligible borrowers. iv. Additional finance extended
under Adhoc line of credit
Covid-19 scheme.
v. Liberalised working capital assessment (LWCA) scheme implemented due to the
elongated working capital cycle of borrowers. vi. For street vendors, Bank of Maharashtra
has extended loans via PMSVANidhi scheme to revive their business.
Bank's lending to Micro, Small and Medium Enterprises increased by 35% as compared to
Mar 2020 and recorded growth of Rs.5969 crore in absolute terms. Total MSME advances of
the bank stood at Rs.23,132.87 crore as on 31.03.2021. Bank's performance in MSME
portfolio in FY'21:
| S. No Particulars |
Actual |
Target |
| 1 % of Micro to Adj. Net Bank Credit |
15.94% |
7.50% |
| 2 YOY growth under Micro Enterprises |
66.76% |
10% |
| 3 YOY Growth under Micro & Small enterprises O/s |
34.55% |
20% |
| 4 Share of Micro against to MSE O/s |
89.90% |
60% |
4.3.1 MUDRA
Bank is supporting credit needs of small business and non-farm enterprises engaged in
manufacturing, trade and services up to Rs.10 lakh by way of Pradhan Matri Mudra Yojana
(PMMY). During the year ended 31.03.2021 the Bank sanctioned
Rs.2560.38 crore under PMMY against the target of Rs.2375 crore, thereby achieving
107.80% of target.
Other Major Achievements
Bank has conducted credit outreach programme from 17.10.2020 to 31.12.2020 during
which, loans to 7230 MSME borrowers amounting to Rs.2076 cr were sanctioned and total
disbursement was Rs.1810 Cr. During this period, Bank has organized 40 webinars and 185
MSME credit outreach programmes.
In order to accelerate the growth of MSME advances,
Bank has conducted MAHA MSME MARATHON CAMPAIGN (M3 Campaign (from 04.01.2021 to
25.02.2021. Overall, Rs.2094.54 Cr loans were sanctioned during the campaign. Against the
disbursement target of
Rs.1500 Cr, bank has achieved disbursement of Rs.1796.53 Cr (approx 120%). As part of
this M3 campaign, Bank organised MSME expos, webinars on PAN India basis to contact MSME
enterprises and industry associations.
Bank has implemented the MSME restructuring guidelines issued by RBI and has
restructured 11470 accounts amounting to Rs.861.98 crore during FY' 2020-
21.
Finance is being extended with very competitive RoI under Banks various customized
schemes like Maha GST, Maha Conductor, Maha Hospitality schemes.
Increased the financial limit under MSME GST scheme from Rs.3 Cr to Rs.10 Cr. This
helped in increasing the lending under MAHA GST scheme by 80.25% to Rs. 1276.89 Cr.
Achieved good growth in MSME portfolio through various delivery channels - partnering
with Fintech companies,
Co-lending, channel financing,etc. and other strategies.
Bank has launched Digital lending products under co-lending arrangement with "Loan
Tap" (NBFC) which enable end to end digitisation of MSME loans.
Bank has a tie-up with finch company M/s Atyati
Technologies for providing end to end services to MSMEs. This tie-up would enable micro
and small enterprises to access Bank facilities with ease.
Bank has launched Mahabank Channel financing scheme which meets the credit demands of
corporates and their MSME channel partners. Bank has sanctioned
Rs.1345 crore of parents limits to various corporates under the scheme.
Decentralisation of E-TReDS platform: Panjim brach,
Goa Zone has been added as a new nodal centre for E-TReDS platform which has resulted
into mobilisation of Rs.474 crore finance under TReDS.
Bank has designated 50 branches as special MSME branches, to cater the needs of MSME
entrepreneurs.
As an organisational transformation initiative, Bank has implements an Enterprise wide
Loan Lifecycle Management System (LLMS) for automation of Loan Life
Cycle Management Process and towards digitisation of records/document.
4.4 Bank's Exposure to Select Segments
| Sr. No. Sector |
As on 31.03.2021 |
As on 31.03.2020 |
% incease (+/-) |
| 1 Micro / SHG Finance |
365 |
217 |
68.00% |
| 2 Weaker Section |
11,863 |
10,481 |
13.19% |
| 3 SC/ ST Beneficiaries |
2,911 |
2,530 |
15.07% |
| 4 OBC Beneficiaries |
7,605 |
6,661 |
14.17% |
| 5 Minority |
3,814 |
3,017 |
26.40% |
| Communities |
|
|
|
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. Total Retail portfolio of the Bank as on 31.03.2021 stood at
Rs.28,650.93 Crore.
| SN |
Scheme |
Brief Description |
Portfolio as of Mar '21 |
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. |
17,909.07 |
2.75 |
|
|
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 wheelers 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). |
1,799.94 |
2.43 |
| 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 for
pursuing higher studies /education in India and abroad. |
1,287.66 |
4.32 |
| 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. |
911.15 |
1.81 |
| 5 |
Mahabank Top up Loan Scheme |
In order to extend additional credit support to existing housing loan
borrower 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". |
425.15 |
1.04 |
|
|
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. |
|
|
| 6 |
Mahabank Gold Loan Scheme |
To cater to the needs of meeting personal expenses, whatsoever which
include personal expenditure for varied needs like marriage, higher education, medical
emergencies, and business travel etc., Bank has a retail loan product as "Mahabank
Gold Loan Scheme". |
1,939.38 |
0.30 |
| 7 |
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 offers
"Mahabank Aadhar Loan Scheme". |
596.76 |
0.98 |
5.2. Centralized Processing of loans
Bank has established Centralised Processing Cells (CPCs) for processing and sanctioning
of commercial and retail advances at all its zones to improve the turnaround time (TAT) in
facilitating timely credit.
In the financial year 2020-21 all three Pune based CPC
Retail i.e. Pune City, Pune East and Pune West CPCs were merged into one Maha Bank
Retail Point for processing all the mortgaged based loans in Pune at a single place for
mapped branches and above the delegated sanctioning powers of unmapped branches.
Similarly, Mumbai City & Mumbai Suburb are also merged into one Maha Bank Retail
Point.
5.3 Door Step Banking Services
Bank is providing Door Step Banking Services for its retail customers in 100
identifiedcities through its 555 branches. The services include financial transactions
like cash withdrawal. Non-financial transactions like delivery of account statement and
TDS certificate/ Form 16 as well as pickup services of cheque, 15 G/H form, standing
instructions, life certificate etc are also made available. Looking at the Covid-19
pandemic the basic financial and non-financial services at doorstep has been widely
appreciated by customers.
5.4 Alternate Delivery Channels 5.4.1 Internet Banking
1. There was an increase of 6.82% in Internet Banking users over the previous year. As
of 31.03.2021 total 15.31 lakh total customers were enrolled for internet banking facility
.
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 5 services and 39 functionalities were added
during the year for more customer ease and convenience.
5.4.2 Mobile Banking
1. Mobile Banking users increased by 63.91% during the year. Total enrolled uses were
13.64 lakhs as on
31.03.2021.
2. Maha Mobile functionality has been customized and simplified with addition of 5
services and 42 functionalities for increasing enrolments.
6. CORPORATE SOCIAL RESPONSIBILITY
Following the legacy of the age-old tradition of contributing to socio-economic
development & upliftment of underprivileged, weaker sections and rural citizens, Bank
undertook varied activities aligned to Govt. guidelines viz.: Helping MSMEs: Bank
organized Online event on "Finance for MSMEs" organized by Mahratta Chamber of
Commerce, Industries & Agriculture (MCCIA) for helping out the MSMEs
Promoting eco-friendly initiatives: Installation of Water Harvesting System in
educational institutions Promotion of Education: Bank provided books and projector
for study center at Pulgaon, sponsored International & National
Web conference in various schools and colleges and provided study materials to the
visually challenged students.
Helping Hand in Combating Covid-19: Bank's employees donated Rs.5.00 Crore to PM
CARES Fund and Rs.1.66 Crore to CM CARES Funds of several states. At different places
across the country the Bank distributed sanitization kits, food packets and drinking water
to the Corona warriors like medical staff, police personnel and sanitization workers.
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
a) Activities through Mahabank Rural Self Employment
Training Institutes (MRSETIs)-
During the year 2020-21 Bank imparted EDP & skill based training to 3698
trainees as against set target of 3375.
A total of 3016 new businesses were started by these trained entrepreneurs, showing
settlement ratio of 81.16%; 1901 units are credit linked, showing 62.14% achievement under
credit linkage. b) Activities through RDCs:-
Besides advocating farmers for their credit needs, Bank organized 143 Farmer
Training Camps wherein 4,394 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 2020-21, 2625 soil and water samples
are tested and reports were provided to farmers along with necessary recommendations.
774 Financial Literacy Camps were organized wherein 46597 participants were
educated for banking, digital transactions, use of UPI, BHIM App and social security
schemes like PMJJBY, PMSBY, APY, etc.
c) Other Activities: - MahaBank SHG Rahat Yojana- COVID-19 was introduced
immediately after foreseeing the effects of COVID-19 pandemic situation to extend relief
to regular repaying SHGs by extending additional loan up to Rs.1.00 Lakh.
Women SHG members were imparted training on various skill developments
activities like
Garment making, files and envelop making, preparation of milk products, preparation of
various items like spices, pickles, jam & jellies, hand wash, incense stick
Manufacturing and handmade jewelry making etc. through GMBVM Trust and MRSETIs.
Bank is also providing an outlet for sale of
SHG products named "Savitree" and also hand holding to SHGs for their
participation in State
Level / District level exhibitions / melavas. They have participated in Bhimthadi
Jatra, Exhibitions arranged at Ganesh Kala-Krida Mandir,
Lokmangal premises on eve of Diwali & Ganesh
Utsav, Bird sanctuary function at Bhigwan etc. Health check-up camps were also
arranged for women SHG members through GMBVM.
d) Other initiatives: -
Bank has celebrated the September 2020 as a
"Poshan Month" through Gramin Mahila Va Bal Vikas Mandal Trust (GMVBM) &
RSETIs in which Bank created awareness about nutrition and distributed high nutrition food
packets in select villages.
Bank received National Award for best performance in SHG financing under DAY NRLM
scheme of Govt of India.
Formed and credit linked 21,803 SHGs amounting to Rs.283.74 Cr. as against the
target of 15,470 SHGs amounting to Rs.255.10 crore (111%). Bank is also
implementing the social security schemes of Govt. like PMJJBY, PMSBY, APY, etc. through
Branches, BCs and other digital modes. GMBVM trust 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
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 member 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. 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
2020-21 was for Rs.4,74,511 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 review 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 Member
Banks, State Government, Government Agencies, Reserve
Bank of India, NABARD and the Central Government. SLBC Maharashtra coordinates a
network of more than 16,827 bank branches in the state.
As the SLBC convener, Bank of Maharashtra coordinated for implementation of Pradhan
Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. As of 31.03.2021, total of 300
lakh PMJDY accounts have been opened in the State. The process of opening of PMJDY
accounts is continued. SLBC also coordinates implementation of other Social Security
Schemes of the Central Government in the State.
7.3 FINANCIAL INCLUSION / PMJDY:
|
Particulars |
2019-20 |
2020-21 |
| FI Plan |
No of Transactions by BCA (in lakhs) |
168.33 |
186.01 |
|
Amt of transactions (in Cr) |
10003.76 |
12896.05 |
| PMJDY |
No. of PMJDY accounts (in lakhs) |
61.74 |
68.15 |
|
Of Which Aadhaar Seeded (in lakhs) |
56.03 |
62.80 |
|
% OF Aadhaar Seeding (in lakhs) |
90.75% |
92.10% |
|
Of Which Mobile Seeding (in lakhs) |
49.81 |
56.47 |
|
% of Mobile Seeding (in lakhs) |
80.68% |
82.86% |
|
Of Which Ru-Pay Card issued (in |
19.17 |
26.71 |
|
lakhs) |
|
|
|
% of Ru-Pay Card issued (in lakhs) |
31.04% |
39.20% |
|
Balance in PMJDY A/c (in Cr) |
2057.37 |
2545.14 |
|
Average Bal. per account (actual) |
3332 |
3735 |
|
PMJDY – OD Count (in lakhs) |
2.53 |
2.66 |
|
PMJDY – OD Amount (in lakhs) |
2774.01 |
3202.08 |
|
Zero Bal. PMJDY A/cs (in lakhs) |
14.82 |
11.47 |
| Social |
Enrolment under PMJJBY (in lakh) |
12.87 |
16.41 |
| Security |
Enrolment under PMSBY (in lakh) |
22.72 |
31.12 |
| Schemes |
Enrolment under APY (in lakh) |
2.03 |
2.83 |
| BSBD |
Total BSBD Accounts (in lakhs) |
85.20 |
93.53 |
| Accounts |
O/S Balance in BSBD A/c (in Cr) |
2635.39 |
3223.00 |
|
Average bal. per account (actual) |
3093 |
3445 |
|
Commission Paid towards BC |
27.88 |
34.23 |
|
Services (in Crore) |
|
|
The Bank has 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 Govt of India in FY 2020-21 for excellent performance in the
field of financial included: Secured 1st position for issuance of RuPay cards
. showing3932%growthinfinancial year 2020-21 Certificate of Appreciation under
the APY Financial
Freedom Fighters Campaign held from 14.08.2020 to 30.09.2021.
Qualified under APY Leadership Capital 3.0 Campaign, held from 18.01.2021 to
28.02.2021 & APY Big Believers
3.00 Campaign, held from 01.03.2021 to 31.03.2021.
Qualified under winning Wednesday campaign, for the month of March 2021.
Certificate of Appreciation under APY Power to Persist
Campaign, for the month of September 2020.
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 March 31,
2021 stood at 412 in its area of operation covering 17 out of 36 districts of
Maharashtra state. These branches are controlled through 7 Regional Offices.
All 412 branches and controlling offices are under core banking solution (CBS).
Performance highlights of Maharashtra Gramin Bank for the FY 2020-21 (Pre Audit) are as
under:
Total Business level was Rs.20682.70 Crore.
Total deposit was Rs.13540.64 Crore and CASA share was 57 %.
Bank has achieved operating profit ofRs.261.70 Crore.
Bank has achieved most of the targets under MoU DAP given by sponsor Bank for the
financial year 2020-21 in major key performance areas.
| Sr. No. Performance Parameter |
Target FY 2020-21 |
Actual as on 31.03.2021 |
| 1. Total Deposits |
12700.00 |
13540.64 |
| 2. CASA deposits |
7000.00 |
7736.11 |
| 3. Total Business |
20360.00 |
20682.70 |
| 4. Interest Income |
910.00 |
979.49 |
| 5. Non-Interest Income |
115.00 |
167.82 |
| 6. Profit Operating |
226.00 |
261.70 |
| 7. Recovery in Write Off |
5.00 |
11.52 |
MGB has deployed 1320 Business correspondents in rural areas to provide door step
service to the customers. Bank has opened 23.44 Lakh PMJDY accounts and 11.48 Lakh debit
cards are issued to in these accounts. Bank is actively participating in PMJJBY, PMSBY and
APY as well as the PMMY scheme declared by the Government of India.
8.2 Performance of METCO
The Maharashtra Executor & Trustee Company Pvt. Ltd
(METCO), 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, Mumbai, Thane and
Nagpur. It is managing about 1111
Public & Private Trusts. During the year, additional 23 wills were added making
total 1306 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 Trustee 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 Trustee 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. The Company has also donated through its trusts Rs.305 lacs to 857
beneficiaries.
The net profit of METCO for FY 2020-21 stood at Rs.70.85 lakhs.
9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
During the year 2020-21, the Bank has achieved various remarkable achievements in the
field of Official Language implementation: i. Bank was awarded Skoch Order-of-Merit 2021
award for Better Implementation of Rajbhasha and became the first bank to receive this
award for implementation of official language. ii. Our Kolkata Zonal Office received
second prize for Eastern
Region in Regional Rajbhasha Puraskar from Department of Official Language, Ministry of
Home Affairs. iii. Various Town Official Language Implementation Committees (TOLIC)
convened by other Banks awarded our Kolkata, Goa, Jaipur, Patna Zonal Offices and Varanasi
Branch (Lucknow Zone), Jodhpur Branch (Jaipur Zone) for excellent implementation of
Official Language. iv. 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 visually challenged employees of the
Bank. v. Bank 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 schedule. vi. "Hindi Karya Diwas" (Hindi Working Day)
is being observed by all the branches & offices of the Bank on the third Saturday of
every month. All the staff are doing their maximum work in Hindi on this day. vii. Hindi
version of Bank's mobile banking platform Maha-Mobile has been made available. Information
on Bank's website are also provided in Hindi. viii. The facility of "Online Rajbhasha
Kosh" & "Online Hindi Roster" is made available on Bank's intranet for
the use of employees. ix. "Maha Kosh Mobile App" and "Mahabank Pragati
Mobile App" were launched by Shri A. S. Rajeev, MD & CEO during the Rajbhasha
Conference on 9th March, 2021 at Hyderabad. This will facilitate the employees to access
both these "Apps" through their mobiles.
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 2020-21, 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. Joshi & Joshi, Practicing Company
Secretaries, Pune as a Secretarial Auditor to undertake secretarial audit of Bank for
the financial year 2020-21. 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 Financial
Year ended March 31, 2021: a) The applicable accounting standards had been followed along
with proper explanation relating to material departures, if any; b) The accounting
policies framed in accordance with the guidelines of RBI were followed and the directors
had selected such accounting policies and applied them consistently and made judgments and
estimates that are reasonable and prudent 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 of the profit that period; c)
The directors had taken proper and the maintenance of adequate accounting records in
accordance with the provisions of applicable laws to the
Bank for safeguarding the assets of the Bank and for preventing and detecting fraud and
other irregularities; d) The directors had prepared the annual accounts on a going concern
basis; e) The directors had ensured that internal financial controls followed by the Bank
are in accordance with guidelines issued by RBI in this regard and that such internal
financial controls are adequate and were operating effectively; and f) The directors had
devised proper systems to ensure compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively.
13 CHANGES IN THE BOARD OF DIRECTORS:
During the year 2020-21, the following changes took place in the Board of Directors:
Shri A.B. Vijayakumar was appointed as an Executive Director of the Bank by the Government
of India w.e.f 10.03.2021 in place of Shri Nageswara Rao Y., who completed his term as an
Executive Director of the Bank on 21.01.2021.
14 DIVIDEND DISTRIBUTION POLICY:
In terms of Clause 43A of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, 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) 2020-21 of the
Bank is available on the Bank's website i.e. www.bankofmaharashtra.in.
16 ACKNOWLEDGEMENT:
The Board of Directors place on record their appreciation for the contribution made by
the outgoing Director Shri Nageswara Rao Y.
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, Insurance
Regulatory and Development Authority, Indian Banks' Association, Stock Exchanges and
Depositories for their valuable advice, guidance and support; to the Customers and
Stakeholders 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, 2021 |
Managing Director and CEO |
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021
To,
The Members, Bank of Maharashtra,
We have conducted the Secretarial Audit of the compliance of applicable statutory
provisions and the adherence to good corporate practices by Bank of Maharashtra
(hereinafter called the "Bank"). Secretarial Audit was conducted in a manner
that provided us a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
Based on our verification of the Bank's books, papers, minute books, forms and returns
filed and other records maintained by the Bank and also the information provided by the
Bank, its officers, agents and authorized representatives during the conduct of
secretarial audit, we hereby report that in our opinion, the Bank has, during the audit
period covering the financial year ended on March 31, 2021 complied with the statutory
provisions listed hereunder and also that the Bank has proper Board-processes and
compliance-mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter:
We have examined the books, papers, minute books, forms, and returns filed, and other
records maintained by the Bank for the financial year ended on March 31, 2021 according to
the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder, to the extent
applicable; (ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA') and the
rules made thereunder; (iii) The Depositories Act, 1996 and the Regulations and Byelaws
framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made
thereunder to the extent of Foreign Direct Investment,
Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and
Exchange Board of India Act, 1992 (‘SEBI Act'): -
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011; (b) Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (c) The Securities and Exchange
Board of India (Prohibition of Insider Trading) Regulations, 2015; (d) The Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(e) The Securities and Exchange Board of India (Share Based Employee Benefits)
Regulations, 2014 Not Applicable during the period under review; (f) The Securities and
Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(g) The Securities and Exchange Board of India (Registrars to an Issue and Share
Transfer Agents) Regulations, 1993 regarding the
Companies Act and dealing with client -Not applicable during the period under review;
(h) The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2009- Not applicable during the period under review; (i) The Securities and
Exchange Board of India (Buyback of Securities) Regulations, 1998; (not applicable during
the year) (j) Securities and Exchange Board of India (Bankers to an Issue) Regulations,
1994; (k) Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992; (l)
Securities and Exchange Board of India (Depositories and Participants) Regulations,
1996/2018; (m) Securities and Exchange Board of India (Debenture Trustee) Regulations,
1993; (n) other laws applicable specifically to the Bank:
(i) The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 read
with The Banking Regulation Act, 1949. (ii) The Nationalised Banks (Management and
Miscellaneous Provisions) Scheme, 1970.
(iii) Bank of Maharashtra (Shares and Meeting) Regulations, 2004. (iv) Reserve Bank of
India Act, 1934.
(v) Banking Regulations Act, 1949. (vi) Banker's Book Evidence Act, 1891.
(vii) Banking Ombudsman Scheme, 2006.
(viii) The Banking Companies (Period of Preservation of Records) Rules, 1985.
(ix) The Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest (SARFESI) Act, 2002 and The Security Interest (Enforcement) Rules, 2002.
(x) The Prevention of Money Laundering Act, 2002 and The Prevention of Money Laundering
(Maintenance of Records) Rules,
2005.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India. -
Not Applicable
(ii) The Listing Agreements entered by the Bank with BSE Limited and National Stock
Exchange of India Limited;
During the period under review the Bank has complied with the provisions of the Act,
Rules, Regulations, Guidelines, Standards, etc., mentioned above except that the Bank has
received show cause notices and awarded penalty or delayed fees/ charges as disclosed by
the Bank in point no.9.6 of Schedule 18 to the Audited Financial Statements of the Bank
for FY 2020-2021.
We further report that
The Board of Directors of the Bank is duly constituted with proper balance of Executive
Directors, Non-Executive Directors and Independent Directors. The changes in the
composition of the Board of Directors that took place during the period under review were
carried out in compliance with the applicable provisions of the Act. Further, adequate
notice is given to all directors to schedule the Board Meetings, agenda and detailed notes
on agenda were sent at least seven days in advance as required under LODR 2015, and a
system exists for seeking and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through, while the dissenting members' views are captured
and recorded as part of the minutes.
We further report that there are adequate systems and processes in the Bank
commensurate with the size and operations of the Bank to monitor and ensure compliance
with applicable laws, rules, regulations, and guidelines. However, penalties have been
imposed on the Bank by Regulatory
Authorities in certain cases during the period under review and same is disclosed by
Bank in point no.9.6 of Schedule 18 of financial statements for FY 2020-2021.
We further report that during the audit period, the Bank has
(i) Issued Equity Shares to Government of India on Preferential basis;
(ii) Issued Tier II Bonds during the period under review.
(iii) taken no major decisions by the members in pursuance to Section 180 of the
Companies Act, 2013 (iv) No Merger / amalgamation / reconstruction, etc.
(v) No Foreign Technical Collaborations
For Joshi & Joshi,
(Formerly known as Apte Joshi & Associates),
Company Secretaries
Harshal Raghavendra Joshi
Partner
FCS: 9897 CP: 10450
UDIN: F009897C000211571
Date: April 29,2021
Place: Pune
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