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Bank of Maharashtra

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

NSE BSE
 
SMC up arrow

11.95

0.00 0.00 Volume 280564

04-Aug-2020 EOD

Prev. Close

11.95

Open Price

12.00

Bid Price (QTY)

11.95(207)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 12.20 - 11.90

52 wk High/Low 15.25 - 8.00

Key Stats

MARKET CAP (RS CR) 6948.16
P/E 17.04
BOOK VALUE (RS) 16.4690893
DIV (%) 0
MARKET LOT 1
EPS (TTM) 0.7
PRICE/BOOK 0.724387352736013
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 55.54
4

News & Announcements

24-Jul-2020

Bank of Maharashtra - Announcement under Regulation 30 (LODR)-Newspaper Publication

23-Jul-2020

Bank of Maharashtra consolidated net profit rises 17.91% in the June 2020 quarter

23-Jul-2020

Bank of Maharashtra - UNAUDITED FINANCIAL RESULT OF THE BANK FOR THE QUARTER ENDED 30 JUNE, 2020

22-Jul-2020

Bank of Maharashtra - Reg. 34 (1) Annual Report

21-Jul-2020

Bank of Maharashtra schedules board meeting

17-Jul-2020

Bank of Maharashtra AGM scheduled

10-Jul-2020

Board of Bank of Maharashtra approves raising of capital

07-Jul-2020

Bank of Maharashtra revises MCLRs effective 7 July

Corporate Actions

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

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

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

Share Holding

Category No. of shares Percentage
Total Foreign 11881303 0.20
Total Institutions 231506801 3.98
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 9622026 0.17
Total Promoters 5386578326 92.49
Total Public & others 184520844 3.17
Total 5824109300 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Bank of Maharashtra

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

Bank of Maharashtra Chairman Speech

Dear Shareholders,

I extend a very warm welcome to each one of you to the 16th Annual General Meeting of your Bank. The past couple of years have been testing for Indian Banking industry with rising NPAs, and overall deterioration of asset quality resulting in successive quarterly losses for most of the Banks; thereby hampering their lending capacity and capital. FY 2018-2019 may be called a breakthrough year for Indian Banking Industry as several steps were taken by Government to breathe air into Public Sector Banks and revive them resulting in increase in the credit off take.

From healthy growth of 8.2% in the first quarter, Indian economy eased to about 7% in the subsequent quarters of financial year 2018-

19 due to declining growth of private consumption, tepid increase in fixed investment, and muted exports. However India still remains one of the fastest growing major economies, based on its strong fundamentals. India moved up by 23 places in the World Bank's Ease of Doing Business Index 2018, inching upto 77th rank. In terms of purchasing power parity, we are the third largest economy with GDP of US $ 9.5 trillion. India has retained its position as the third largest start-ups base in the world with over 4,750 technology start-ups. As per World Bank latest report, Indian economy has bounced back strongly from the impact of demonetisation and GST implementation. It is expected to grow by around 7.5 % in FY 2020, based on robust private consumption and various reform measures. After a prolonged period of stress, the banking sector appears to be on course to recovery as the load of impaired assets recedes; declining gross NPA ratio and improving Provision Coverage Ratio, being positive signals. Various Schemes introduced in the interim budget like Pradhan MantriShram Yogi Mandhan, PM KISAN programme, creation of

National programme on Artificial intelligence, two per cent interest subvention on loan of 1 crore for GST registered MSME units, and Vision 2030 are expected to push up India towards better social and physical infrastructure.

It gives me immense pleasure to place before you the Annual Report and Financial statement of your Bank for year ended 31 March 2019. This is an important occasion, giving us an opportunity to revisit past 12 months and ahead to future plans.

Performance of your Bank

With the help of your unbending trust and reliance on your Institution,

Bank of Maharashtra was one of the first few Banks to have emerged out of Prompt Corrective Action (PCA). I am also pleased to inform you that your Bank has registered a Net Profit of ` 72.38 crore in Q4 of FY 2018-2019 thus ending on a high note and we are committed to carry forward this momentum in FY 2019-2020 as well.

Your Bank has a branch network of 1832 branches of which 1043 branches are located in rural and semi urban areas. Bank has PAN India presence. Bank has committed and dedicated work force of 12913 employees to serve its customers.

Total business stood at `234116.79 crore as on 31.03.2019.

As on 31.03.2019, total deposits stood at `140650.09 crore & Gross advances at `93466.70 crore.

CASA deposits increased by 5.25% (Y-o-Y), to ` 69829.81 crore as on March 31 2019, constituting 49.65 % of total deposits. Cost of deposits has come down on Y-o-Y basis to 4.99% for period ended March 31 2019 from 5.31% a year ago Net Interest Margin (NIM) improved to 2.53% in year ended March 2019 as against 2.32% in year ended March 2018.

Operating profit for FY 2018-19 stood at `2197.61 crore, improved from ` 2191.40 crore, a year ago.

Net loss for the year ended March 31, 2019 was `4783.88 crore (as compared to net loss of `1145.65 crore in year ended March 31, 2018).

Gross NPAs and Net NPAs stood at 16.40% [`15324.49 crore] and 5.52% [`4559.33 crore] respectively.

Bank had Capital Adequacy ratio of 11.86% as on March 31 2019, above the required level of 10.875% as per Basel – III norms. CET 1 ratio stood at 9.88% as against minimum required 7.375% During the year, your Bank had taken new business initiatives as under: Premium Savings Bank Deposit Scheme "Purple Privileges" for High Net worth Individuals (HNIs) for providing specialized services.

Centralized e-Surveillance System at ATMs: A proactive system, which is centrally monitored / controlled & has the capability to detect & deter intruders / unknown persons by use of two-way communication, blowing Alarm & Hooter Systems. The system obviates the need to have security guards at these locations.

Facility for user defined Limits in Internet banking.

Mobile Banking – Registration for overseas customers via registered foreign mobile number.

Bank launched ‘Maha-UPI', its UPI mobile application. Rupay "Platinum" Cards being issued to customers.

e-KYC, an online Aadhaar Authentication process is made available under CBS

PSB59 Minutes Scheme has been started under which in-principal approval would be given

Way forward

It's imperative for us to carry the momentum of growth in FY 2019-20 as well and the same can be achieved by means of increasing our credit portfolio by focusing on RAM and improving our digital platforms for providing better customer service.

A number of initiatives are underway to improve the operational efficieny of Banks: with the clear focus on ease of customer banking.

With the enhanced and improvised Regulatory regime, the banking sector is set to be much more proficient.

A. S. Rajeev

Managing Director & CEO

   

Bank of Maharashtra Company History

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

Bank of Maharashtra Directors Reports

Your Directors have pleasure in presenting the Annual Report of the

Bank with the audited Balance Sheet, Profit & Loss Account and the

Report on Business and Operations for the year ended March 31, 2019.

1. MANAGEMENT DISCUSSION AND ANALYSIS: 1.1 Economic and Banking Scenario 2018-19

Global growth has shed some momentum in 2018 in an environment of volatile crude prices, geopolitical tensions and escalating trade wars. Financial conditions especially in the emerging market economies have tightened with capital outflows and asset price volatility.

Domestically, a pickup in GDP growth took hold in the first half of 2018-19, having shrugged of the transient effects of demonetization and implementation of the Good and Services Tax. A strong revival in bank credit growth during 2018-19 by private and public sector banks and NBFC's suggests an overall improvement in the health of the Indian Financial System. Indian banks are increasingly focusing on adopting integrated approach to risk management. Reserve Bank of India (RBI) has decided to set up Public Credit Registry (PCR) an extensive database of credit information which is accessible to all stakeholders. The Insolvency and Bankruptcy Code is expected to strengthen the banking sector.

1.2 Outlook for 2019-20

The improvement in global economic conditions offers greater scope for policymakers to shift from a short-term focus that is inevitably part of coping with crises, towards addressing longer-term challenges and eliminating deep-rooted barriers to development. India's GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 2019-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption. The private consumption expenditure is expected to receive a boost from remonetisation and lower borrowing costs. Rise in crude prices could however play a spoilsport.

The various proposals in the Union Interim Budget 2019-20 with regards to launching of Pradhan Mantri Shram Yogi Mandhan, PM-KISAN programme, focus on more technical jobs by focus on schemes like MUDRA, Start up India and Stand Up India and Empowering MSME and Traders and thus supporting domestic trade and services will act as a catalyst for growth.

Banking sector is also expected to be benefitted by the amendment in Insolvency and Bankruptcy Code and the innovations in form of massive adoption of Artificial intelligence and Blockchain technology being undertaken by the fintech companies.

2. PERFORMANCE HIGHLIGHTS 2018-19:

1. Total Business of your Bank stood at `234116.79 crore as on 31.03.2019 as against ` 233626.38 crore as on 31.03.2018.

2. Total deposits stood at ` 140650.09 crore as compared to ` 138981.18 crore last year.

3. CASA deposits increased to ` 69829.81 crore as on 31.03.2019 from ` 66345.44 crore as on 31.03.2018, registering a growth of ` 3484.37 Crore. Share of CASA to total deposits stood at ` 49.65% as on 31.03.2019.

4. Gross advances of the Bank stood at ` 93466.70 crore as on 31.03.2019 in comparison to `94645.20 crore as on 31.03.2018 as a result of Bank's policy to focus more on retail advances instead of dependence on big corporate advances.

5. Operating Profit stood at ` 2197.61 Crore for the year ended 31.03.2019 as against ` 2191.40 crore for year ended 31.03.2018.

6. Business per Employee increased to ` 18.13 crore as on 31.03.2019 as against ` 18.07 crore as on 31.03.2018.

Corresponding figures for Business per Branch are ` 127.79 crore and ` 126.56 Crore respectively.

2.1 Sectoral Deployment of Credit

O/s as on O/s as on
Particulars 31.03.2019 `crore Percentage to total O/s 31.03.2018 `crore Percentage to total O/s
Industry 36,491.52 39.04% 44,671.77 47.20%
Of which
i. Infrastructure 8,844.99 9.46% 8,927.06 9.43%
ii. Chemicals,
Dyes, Paints etc 2,219.63 2.37% 1,930.20 2.04%
iii. Petroleum 365.33 0.39% 341.74 0.36%
iv. Iron and Steel 1,844.24 1.97% 4,699.00 4.96%
v. NBFCs and
10,672.69 11.42% 14,182.77
Trading 14.99%
vi. Engineering 2,942.93 3.15% 3,246.19 3.43%
vii. Construction 5.21 0.01% 5.04 0.01%
viii. Other Industries 9,596.50 10.27% 11,339.77 11.98%
Agriculture 15,220.30 16.28% 15,066.63 15.92%
MSME 13,632.94 1.46% 15,940.00 16.84%
Housing 12,052.10 12.89% 13,572.69 14.34%
Education 1,086.53 1.16% 995.25 1.05%
Exports 1,200.04 1.28% 1,209.66 1.28%
Commercial Real estate 2,324.14 2.49% 31,89.00 3.37%
Gross Advances 93,466.70 94,988.00

2.2 Quality and NPA Management

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

2. Twelve Asset Recovery Branches (ARBs) have also been set up across the Zones for large NPA a/cs more particularly where legal actions are in progress so as to make focused follow up.

3. Further, Bank has established Stressed Assets Management Vertical by way of a separate department at H.O. under which Bank has started (four) Stressed Assets Management (SAM) branches in Delhi, Mumbai, Hyderabad and Pune, where NPAs with balance of `5 crore and above is monitored. Focused follow up is undertaken to improve NPA recovery.

4. The Loan Tracking Cell has been established where

Bank undertakes telephonic follow up on daily basis with borrowers of stressed accounts / slippages and repayment of overdues has enabled in improving recovery and upgradation of NPAs.

5. The Bank has also set up separate Cells at its Head

Office for identification of Wilful Defaulters, increasing recovery in Written Off accounts, gearing up the actions under DRT / SARFAESI Acts.

6. Bank has been implementing Suo Motu non-discriminatory and non-discretionary One Time Settlement (OTS) Schemes. Monitoring of the performance under the schemes is undertaken by

Recovery Department, Head Office on daily basis.

During 2018-19, the Bank introduced following OTS schemes:

1) "Ghar Ghar Dastak Yojana 2018-19" (GGDY-2018-19) was introduced for Small NPA borrowers up to `100 lakh.

2) Maha-riyayat Yojana (MrY): Maha-Riyayat Yojana (MRY) was introduced for NPAs having ledger balance above `1 crore and up to `50 crore.

3) CSMSSY -2017: The Government of Maharashtra announced a loan waiver scheme, named as "Chhatrapati Shivaji Maharaj Shetkari Samman Yojana 2017" (CSMSSY -2017) for farmers in the State of Maharashtra. The Bank introduced a scheme for one time settlement of Specified NPA accounts under

CSMSSY - 2017 as proposed by Government of Maharashtra.

4) Jai Kisan Fasal Rin Mafi The Government of Madhya Pradesh announced a loan waiver scheme named as "Jai Kisan Fasal Rin Mafi Yojana" for the farmers in the state of Madhya Pradesh. In this regard, Bank has introduced a scheme for one time settlement of Agriculture Crop Loan accounts upto ` 2 lakh under Jai Kisan Fasal Rin Mafi Yojana as proposed by Government of Madhya Pradesh.

Bank has also made intensive follow up with the defaulting borrowers through visits, letters, notices, Recovery Camps,

Lok Adalats, Mahabank Adalats, actions under SARFAESI / DRT Act; services of Recovery Agents / Resolution Agents are engaged so as to have an early resolution. The Bank has also initiated action under the provisions of the Insolvency &

Bankruptcy Code 2016 against various large NPA borrowers. Position of Non-Performing Assets is as under;

Particulars Amt. as on 31.03.19 Amt. as on 31.03.18 Percentage of (+/-)
Gross NPA 15,324.49 18,433.23 (16.86%)
% to advances 16.40% 19.48% XXX
Net NPA 4,559.33 9,641.09 (52.71%)
% to advances 5.52% 11.24% XXX
Cash Recovery 2,570.11 1,960.51 31.09%
2.3 foreign Exchange Business (` in crore)
Particulars 2018-19 2017-18 Percentage of (+/-)
Total FEX Business Turnover 812,351.14 589,806.00 37.73 %
Merchant Business Turnover 37,311.51 30,687.93 21.58 %
Profit in FEX Business 132.39 110.16 20.18 %

Bank has 35 B Category branches across the country catering to the International business needs of the customers of the Bank apart from TIBB at Mumbai as "A" category branch. The Merchant Business for FY 2018-19 stood at ` 37311.51Crore.

2.4 Investment

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

The Gross Investments as on 31.03.2019 stood at

` 60,163.68 crore, of which ` 34,170.60 crore are

SLR securities and ` 25,993.08 crore are Non-SLR Securities. The excess SLR securities as on 31.03.2019 stood at ` 6827.27 crore.

The net investments (net of provisions) stood at

`59,697.05 crore as on 31.03.2019 as compared to `43,662.80 crore as on 31.03.2018. Investments under Held to Maturity (HTM) category consisted of 58.88%, while Available for Sale (AFS) comprised of 41.11% of total investment portfolio as of 31.03.2019. The net interest income from investment activity increased to `3,689.61 crore from `2,962.41 crore during the last year (growth of 24.55%).

The Non-Performing Investments stood at `266.04 crore as on 31.03.2019.

2.5 Merchant Banking:

The Bank handled 52 issues (previous year 75 issues) of Commercial paper amounting to `8360 crore (previous year `36445 crore) for its clients as an Issuing and Paying Agent (IPA) during the year.

2.6 Borrowings:

The borrowing of the Bank as on 31st March 2019 stood at

`10,149.17 crore including re-finance as under:

Particular Amount as on 31.03.2019 Amount as on 31.03.2018 Percentage of (+/-)
Total Borrowing 10149.17 4063.71 149.75
of which Borrowing RBI under LAF 1500.00 0.00 -
of which Borrowing Market REPO 2003.63 0.00 -
of which Borrowing TRePS (G-Sec) 3277.48 0.00 -
of which Refinance from
NABARD 140.00 280.00 (50.00)
EXIM BANK 0.00 67.57 -
NHB 92.62 185.26 (50.01)
MUDRA 0.00 182.53
Of which Borrowings in the form of Bonds & debentures capital instruments 3100.00 3300.00 (6.06)
Borrowings outside India 35.39 48.31 (26.74)
Others 0.05 0.05 -

During the FY 2018-19, Bank has redeemed Basel II /Basel III Compliant Bonds for an amount ` 200 crore on the redemption date. Bank undertook borrowing as part of its asset liability management.

2.7 Depository Services

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

The Bank has also introduced Basic Services DEMAT

Account Facility (BSDA)

2.8 Bancassurance

Bank is corporate agent for carrying out Bancassurance business. Bank has made tie up arrangements with following insurance companies: Life Insurance

LIC of India

Aviva Life Insurance

Reliance Nippon Life insurance

General Insurance

United India Insurance

Future General Insurance

Health Insurance

United India Insurance

Cigna TTK Health Insurance

Performance during the year 2018-19: ` (in crore)

Insurance No. of Policies Premium Commission
Life 10640 67.23 10.07
General 116842 38.54 5.93
Health 31203 18.43 3.46
Total 158685 124.19 19.46

2.9 Government Business

During the year 2018-19, 721999 challans of Direct Taxes and 49276 challans of Indirect taxes were collected by the branches. Total commission to the tune of `5.35 Crore was received on Tax collection business from Central/state Government and other business in current year As a service to senior citizens, the Bank is processing and crediting monthly pension payments of more than 110914 Central Government, Defence, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2018-19 is ` 14.04 Cr. Government Sponsored Small Saving Schemes like Public Provident Fund (PPF), Senior Citizen Saving Scheme (SCSS) and Sukanya Samruddhi Account (SSA) is now made available to customers through all Branches

2.10 Income, Expenditure and Profitability

The total income of the Bank stood at ` 12397.06 crore in FY 2018-19 as compared to `12602.47 crore in FY 2017-18. The detailed income/ expenditure components are as under:

(` in crore)
Particulars 2018-19 2017-18 Variation (per cent)
Interest / discount on advances / bills 6566.64 7072.71 (7.16 )
Income on investments 3689.61 2962.41 24.55
Interest on interbank lending & other Interest 593.35 1061.30 (44.09)
Total interest income 10849.60 11096.42 (2.22)
Non-interest income 1547.46 1506.05 2.75
Total Income 12397.06 12602.47 (1.63)
Interest on deposits 6750.94 7133.17 (5.36)
Interest on borrowings 29.57 11.49 157.35
Other Interest expenditure 335.61 562.02 (40.29)
Staff expenses 1794.17 1618.06 10.88

 

(`in crore)
Particulars 2018-19 2017-18 Variation (per cent)
Other Operating expenses 1289.16 1086.33 18.67
Total Non-interest expenses 3083.33 2704.39 14.01
Total Expenses 10199.45 10411.07 (2.03)
Operating Profit 2197.61 2191.40 0.28
Provisions and
6981.49 3337.05 109.21
Contingencies
Net Profit/(Loss) (4783.88) (1145.65) 317.57

 

2.11 financial ratios
Particulars 2018-19 2017-18
EPS (? ) (14.26) (8.98)
Cost to Income Ratio (percent) 58.39 55.24
Return on assets (percent) (3.01) (0.73)
Return on equity (per cent) (207.99) (42.43)
Book value per share (? ) 10.24 23.73
Profit per Branch(` in lakh) (261.13) (62.06)
Profit per employee ( ` in lakh) (37.05) (8.86)
Business per Branch (` in crore) 127.79 126.56
Business per employee (` in crore) 18.13 18.07
Interest income as per cent to Average working funds 6.82 7.03
Non-Interest income as per cent to average working funds 0.97 0.95
Net Interest Margin (per cent)* 2.53 2.32
Operating Profit as per cent to average working Funds 1.38 1.39
Staff expenses as a percent to average working funds 1.13 1.03
Net worth (` Crore) 5859.73 6159.92
CRAR (%) (Basel III) 11.86 11.00
Of which, Tier I CRAR (%) (Basel III) 9.91 9.01

* Calculated on the basis of average interest earning assets.

2.12 Capital from Government of India

The Government of India has infused total additional capital of

` 4703 crore in two tranches; `4498 crore on 31.12.2018 and `205 crore on 21.02.2019.

2.13 Networth

The Bank's Net Worth stood at ` 5859.73 crore as on 31.03.2019 as against ` 6159.92 crore.

2.14 Capital Adequacy ratio

The Capital Adequacy ratio stood at 11.859 % as on 31.03.2019, against the minimum of 10.875% (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio stood at 9.883%.

2.15 Dividend : Your Board do not propose any dividend for the FY 2018-19, as the Bank has incurred loss.

3. Resources: Branch network, HUMAN resources, IT infrastructure, customers responsiveness AND others:

3 .1 Branch/ATM Network

As on 31.03.2019, the total branch network comprised of 1832 branches spread across all the States and 4 union territories. The branch network includes specialized branches in the area of foreign exchange, Government business, Treasury and International Banking, Industrial Finance, Small Scale Industry and Hi-tech agriculture, Pension Payment, Self Help Groups etc.

Area wise classification of branches as on 31.03.2019 is given in the table below:

Classification As on 31.03.2019 As on 31.03.2018
1 Rural 615 616
2 Semi-Urban 426 427
3 Urban 325 329
4 Metro 466 474
Total 1832 1846

As part of Bank's endeavor to curtail its operating expenses, Bank has merged 14 branches during the year, which were in close vicinity of each other, ensuring that no discomfort was caused to the customers.

ATM NETwOrk

31.03.2019 31.03.2018
Offsite 552 559
Onsite 1306 1305
Total 1858 1864

3.2 Human resources Management

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

Recruitment: During the year 2018-19 the Bank has recruited employees as under:

520 Officers in Scale I, 4 Security Officers, 1 Fire Engineer, 17

Chartered Accountants 4 Civil Engineers, 2 Electrical Engineers in Scale II, 2 Credit Risk Officers, 1 Market Risk Officer, 1 Civil Engineer, 1 CM Balance Sheet, 7 Officers for Project Apprisal, in Scale IV.

The Bank has also recruited 290 Clerks.

During the year, 1044 employees ceased to be in service on account of retirement, VRS, resignation, termination etc. and death.

Inter scale promotions of officers were carried out during 2018-

19. Following number of candidates were promoted.

JMGS-I TO MMGS-II MMGS-II to MMGS MMGS-III TO SMGS- SMGS- IV TO SMGS-V TO SMGS- SMGS-VI TO TEGS-
III IV SMGS-V VI VII
1080 103 103 35 15 5

During the year 2018-19, 149 Part Time Sub-staff employees were absorbed in Sub-staff cadre, 3 Clerks were promoted to

Officer Cadre in Scale I.

Cadre wise staff position as of 31.3.2019 with sex ratio percentage is as under:

Category Male % female % Total
Officers 4813 72.33 1841 27.67 6654
Clerks 2937 65.31 1560 34.69 4497
Sub-staff 1570 89.10 192 10.90 1762
Total 9320 72.18 3593 27.82 12913

The top three branches in disbursement and recovery of advances to SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar. The Bank has healthy industrial relations.

The Bank has been complying with the reservation policy of

Govt. of India. Special Cells at Head Office and all Zonal Offices are functioning to monitor the implementation of the reservation policies and to redress grievances of SC/ST/OBC & Physically challenged employees as well as ex-servicemen. The Bank has designated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all Zonal Offices. During the year periodical meetings were held with SC/ST/OBC Employees Association to discuss implementation of reservation policy and other constitutional safe guards and also to facilitate involvement in business growth.

Compassionate Appointments-

A Scheme for ‘Compassionate Appointments' / Payment of Ex-gratia lump-sum amount to /of heirs of employees dying in harness or retiring due to incapacitation framed as per the directives of Government of India, has been implemented. The details of compassionate appointments and payment of Ex-gratia lump-sum amount for the year 2018-19 is as under:

Compassionate Appointments
Cadre No.of employees No.of employees Payment of Exgratia Amount paid
Clerk 10 1 7,00,000/-
Sub-staff 19 Nil Nil

The Contributory Group Insurance Mediclaim Policy for all employees including retired employees, has been renewed w.e.f. 1.4.2018 and the Sum insured for existing employees is upto `10.00 Lacs. The details of renewal of policy are as under:

Employees No.of Employees Premium paid
( ` in lakh)
Existing 719 100.48
Retired 1662 229.52
Total 2381 330.00

The reimbursement of examination fees & payment of cash incentive / Honorarium in respect of courses from Indian

Institute of Banking & Finance, MBA from reputed Institutions &

CFA has been widened by adding courses in the list of courses for reimbursement of fees; thereby making total 35 courses eligible for reimbursement of examination fees.

A policy for granting special leave and 100% reimbursement of hospitalization expenses to officers when he/she meets with an accident / injury while on duty is in place.

Training Activities:

The Bank has a training system which facilitates attention to regular periodic assessment of skill gaps at various levels in relation to existing and emerging business opportunities. Skill building in credit, Forex, customer relationship management, marketing of products and services, credit monitoring and recovery, risk management, technology based banking, branch management, complying with statutory, legal and policy requirements and preventive vigilance received special attention during the year.

Training programs were also held on thrust areas like financing MSMEs, retail lending, agriculture finance, soft skills and rural development.

Cadre-wise Break up of Employees trained during the period 1.4.2018 to 31.03.2019 are as under-

Cadre No. of Programmes Training Days Employees Trained
Officers 197 584 5272
Clerks 115 329 2023
Substaff 57 133 1042
Total 369 1046 8337

3.3 Technology Initiatives

The Year 2018-2019 was a Technology Upscaling year for the Bank. The Bank had taken up & successfully initiated / upscaled various Major IT Projects during 2018-19 which are enumerated as under:

1. The Bank has implemented 607 Self Update Pass Book Printing Kiosks, 106 Bunch Note Acceptor Machines and 75 Cash Recyclers at various locations across the Bank. The same shall be continued to ensure fulfilment of customer requirements/ satisfaction.

2. The Bank has a tie up with BSNL for upgrading the Bandwidth of the existing Leased Lines to 2 Mbps. As on 31.03.2019, bandwidth of 1640 leased lines is upgraded to 2 Mbps. In order to make our systems more resilient, bandwidth is made available from Additional Network Service Providers including Airtel, Vodafone, Sify and TCL. So far 813 branches have dual service providers.

3. Integration of SWIFT with CBS System is achieved on 27.04.2018.

4. (NCMC) – The Bank has implemented National Common Mobility Card (NCMC) using Near Field Communication for issuance of NCMC Cards. Bank's status is Live under Closed User Group from 08.01.2019.

5. Bank is offering corporate bill payment solution to Pune

Municipal Corporation (PMC) MSEDCL bill payments on BBPS platform.

6. Digital Media Signage System with the Queue Management System for token display with sound announcement is made live on Pilot basis at Shivaji Nagar Branch on 16.01.2019. The Integrated Queue Management System will be implemented across 100 branches initially.

7. The ISO 27001: 2013 certification was achieved for our IT division covering HO-IT, DC, DR and CBS Project Office in August 2015. Bank is ensuring continued compliance & successfully completed the Surveillance Audit for the continuation of ISO 27001: 2013 Certification for the year 2016- 17, 2017-18 and recently 2018-19 as well.

8. The first PCI DSS certificate was awarded towards compliance of Debit Card environment security to the Bank on 12.09.2014 and for subsequent years on 12.09.2015, 12.09.2016, 12.09.2017 and recently on 06.11.2018.

9. Next generation Corporate Internet Banking Module is implemented w.e.f. 05.09.2018 for better customer experience.

Each Corporate user can have user specific per transaction, per day limit option available. Corporate Users can also avail View only facility for "Enquiry and Statement Viewing". Automated Internet Banking Password Generation and Forgot Password functions are available.

10. The Bank is actively promoting BHIM Aadhaar Pay payment channel and 29205 Merchants are on-boarded as on 31.03.2019.

11. Centralized e-Surveillance system is implemented at 15 more ATMs taking the total count to 475 ATMs being covered under this system; ensuring safety and security of ATMs & Customers.

This will be extended across more ATMs shortly.

12. Bank has implemented Public Financial Management System (PFMS) which is used by Government Agencies to make payments directly into the recipients Bank Account. As on 31.03.2019, Bank had 46323 Accounts under PFMS & the total balance in these accounts was `4936.11 Crore 13. The Bank issues Rupay and Visa debit cards in different variants such as Visa EMV, Rupay Classic, Rupay Platinum etc. to its CASA Accounts. As per RBI guidelines, all the cards are EMV Chip based. The total card base of the bank stands at 52.83 Lakh as on 31.03.2019

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

15. NPA and recovery: Following initiatives were undertaken: a. Mobility application for Branches/Zones/Head Office to assist in daily monitoring of NPA. b. Internal web based applications for credit monitoring/ recovery of NPA, potential NPAs for current month, fresh slippages for current month, SMA0 , SMA1, SMA2, Stock statement expiry cases, working capital limit expiring in next 30 days, time barred documents, turnover comparison on working capital, security expired and security not available cases, insurance not available or expired, valuation expired, various exceptions in case of data elements related to CIBIL rejections, BG expired etc., c. Various internal dashboards on details of progress in NPA Recovery, Sector Wise Position of NPA and Recovery, various schemes on recovery. d. Online OTS Portal e. Asset Classification and provisioning in CBS for managing the IRAC movement on daily basis as well as monthly stamping f. SMS to borrowers for EMI reminders.

16. Bank has robust Information Security Management System (ISMS) framework in place. Bank has also implemented major security initiatives recommended by Gopalakrishna Committee for internal and external customers.

17. Bank has implemented Cyber Security operations Centre (CSOC) with state of the art technologies including, a) Security Information and Event Management (SIEM) solution

b) Anti-Advanced Persistent Threat (Anti-APT) Solution for combatting advanced attacks.

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

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

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

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

18. The Bank has initiated implementation of Loan Life Cycle Management software (LLMS) with Document Management System (DMS) and Early warning Signals (EwS) solutions.

19. CBS Front End version upgradation with enhanced features has been initiated for better user experience and resolving data integrity issues 20. Mobile based CTS application is user friendly and cost effective solution. POC was successfully implemented at three branches and these three branches are linked to Service Branch Chennai i.e. South Grid of CTS where the application provider (Mobile based CTS) is providing the services to the Bank.

21. The Bank received IBA Banking Technology award for Best IT Risk Management and Cyber Security Initiatives under Medium Banks 22. Honeypot solution: Bank has taken initiative and deployed deception technology as a part of Proof of Concept (POC) for active threat hunting

3.4 Customer Centric Initiatives taken by the Bank

The Bank has pursued high standards of customer service to ensure customer satisfaction throughout the year by implementing all major recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee. As a member of Banking Codes and Standards Board of India (BCSBI), Bank has adopted Code of Bank's Commitment to Customer and Bank's Code of Commitment to MSMEs. Bank has printed folder called as "My Folder" containing all customer service policies, information on service charges, guidelines on Government Schematic Loans, Ombudsman and BCSBI Codes. The same is printed in Marathi, Hindi and English and supplied to all branches and Zones for making the same available to all customers on demand.

Duly documented policies approved by the Board, on "Deposit", "Collection of Cheques", "Redressal of Grievances", "Compensation" , "Operational Procedure for Settlement of Claims of Deceased Depositors" and Customer Rights Policy are in place. Customer Service Committees are formed at all branches and their meetings are conducted regularly on monthly basis. The

Standing Committee on Customer Service at Head Office and Zonal Level Customer Service Committees at Zones, meet regularly to address and review various customer related matters and to take steps, for an improvement, on an ongoing basis.

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

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

Particulars 2018-19 2017-18
1 Customer complaints at the beginning of the year 388 54
2 Complaints received during the year 8395 8348
3 Complaints redressed during the year
8638 8014
4 Complaints pending at the end of the year
145 388

3.5 kYC/ AML

Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards / Combating of Financing of Terrorism (CFT) and Obligation of Bank under Prevention of Money Laundering Act (PMLA) 2002.

The Bank has Board approved KYC-AML-CFT Policy in place. The said Policy is the foundation on which the Bank's implementation of KYC norms, AML standards and CFT measures is based. The full KYC compliance entails staff education as well as customer education for which the following measures are taken by the Bank.

A comprehensive list of KYC documents is uploaded on the Bank's web site for the benefit of customers. Regular training sessions are conducted on KYC-AML-CFT guidelines at the

Bank's training establishments to sensitize the employees.

3.6 risk Management

The Bank has put in place Risk Management Policies and Strategies to identify, measure, monitor and manage risk efficiently and establish control systems in line with the

Bank's aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor the risk at Bank level in accordance with RBI Guidelines. Bank has also constituted sub-committees headed by Top Management of Bank.

The Bank is compliant to the RBI guidelines on disclosure requirements under Basel III Capital Regulations.

3.7 Brand Image

With a view to develop Brand Image of Bank, Bank publicizes its various products and sponsors with social cause.

Bank has extended Donations/Sponsorships to NAR (National Academy of RUDSETI) Building at Bangalore. Being in loss, Bank could not perform CSR Activities during the year. However, Bank was aggressive in publicity of Bank's products in all the media vehicles, be it Print, Electronic, Radio, or Outdoor. Sponsorships in Property Retail Expos and others have enhanced the Bank's brand image and in reaching to new customers.

3.8 Citizen's Charter

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

All branches of banks in all parts of the country should provide the customer services, more actively and vigorously to the members of public.

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

Exchanging soiled notes, and

Accepting coins and notes either for transactions or exchange.

Separate queue for senior citizens

4. SOCIO/MICRO ECONOMIC DEVELOPMENT:

4.1 Priority Sector Lending

It has been the constant endeavor of the Bank to facilitate equitable and sustainable economic development by timely and hassle-free availability of credit for productive purposes to Small and Marginal Farmers, Micro and Small Enterprises, Retail

Traders, Professional and Self Employed, Women Entrepreneurs and entrepreneurs from economically weaker sections.

The outstanding advances under Priority Sector (excluding investment) as of 31st March 2019, aggregates to ` 35431.14 crore constituting 36.13% of the Adjusted Net Bank Credit (ANBC).

4.2 Agriculture

Bank disbursed ` 6372 Crore for agriculture and allied activities during the year 2018-19. The total outstanding advances to agriculture sector reached a level of ` 15120 Crore as on 31.03.2019 (growth of 1.74 %). Bank focused on growth of investment credit under Agriculture during the year 2018-19 and disbursed ` 2456 Crore. Bank also entered into strategic tie-ups with Tractor Manufacturers, Micro Irrigation Companies, Farm Pond Construction Company for promoting farm mechanization, micro irrigation activities and also with Govt. of Maharashtra under POCRA / SMART Project for financing to FPO during the year. Bank has entered into an

Agreement for Credit Guarantee with Small Farmers Agri-

Business Consortium (SFAC) for financing to Farmer Producer

Organizations (FPOs). Bank is successfully implementing farm loan waiver scheme of Govt of Maharashtra. Till 31st March 2019, Bank credited ` 1418 crore to 2.39 lakh farmers loan accounts under the aforesaid scheme. The Bank undertook awareness/sensitization programmes for all the branches for increasing advances to agriculture by providing hassle free credit to farmers

4.2.1 Mahabank Kisan Credit Card

This scheme gained popularity especially in rural areas where it is being propagated successfully and vigorously. Bank has issued total 126509 Kisan Credit Cards to farmers. Credit flow to MKCC beneficiaries has reached to a level of`8632 Crore as on 31.03.2019.

4.3 Micro, Small and Medium Enterprises (MSME)

MSMEs are recognized as a major growth engine for the Indian economy. They generate opportunities for direct and indirect employment by facilitating use of natural resources and local skills to stem the tide of migration to urban areas and promote low investment enterprises. Finance is made available to viable enterprises at an attractive and low rate of interest. Online enquiry portal is made available on the Bank's website.

Bank has already adopted Simplified Loan Application for

MSEs and the same is displayed on the Bank's website. Bank has also adopted Bank's Code of Commitment to Micro and Small Enterprises. The Bank's lending to Micro, Small and Medium Enterprises (Priority) is `14664 Crore (including investments) as on 31.03.2019. Advances to Micro enterprises under priority are 7.19 % of ANBC against RBI target of 7.50 % as of March 2019.

For promoting finance under this category, Bank has entered into strategic tie up arrangements with Truck / Vehicle / Passenger car manufacturers. Bank has also entered into MoU with "Bhartiya Yuva Shakti" Trust and "de-Asra" foundation for Credit facilitation and hand holding of the Micro entrepreneurs especially under Women and SC/ST categories.

Centralized Processing Cells have been set up at all Zonal

Offices for speedy disposal of MSME proposals.

4.3.1 MUDrA

Bank is giving special attention to credit needs of the non-farm enterprises engaged in manufacturing, trade and services upto `10 Lakh. With the introduction of Pradhan Mantri

MUDRA Yojana (PMMY) Bank is giving special attention to this segment. Loans given to this segment for income generation are known as MUDRA loans under Pradhan Mantri MUDRA Yojana (PMMY) and branded accordingly.

Bank sanctioned ` 2130 Crore under PMMY against the target of ` 2550 Crore as on 31.03.2019. Bank achieved 83.53% of target allotted by Government under PMMY.

Bank has launched MUDRA Card on 16.9.2015 and till date issued 6852 MUDRA Cards as on 31.3.2019.

4.3.2 Coverage under CGTMSE Scheme

Under Credit Guarantee Fund Scheme for Micro, Small and Medium Enterprises of Government of India credit facilities up to `200.00 lakh are covered, wherein no collateral security and third party guarantee are insisted by the Bank. The Bank has sanctioned loans of ` 321.52 Crore to 1562 borrowers under this scheme up to March 2019. Bank has on boarded as Financier on the PSB loan portal, a new initiative of the Govt. of India during the financial year and sanctioned 738 cases amounting ` 231 crore.

Bank has implemented the MSME Restructuring guidelines issued by Reserve Bank of India and have restructured 7556 accounts amounting to `412 crore.

4.3.3 Banks exposure to select segments

( ` in Crore)
Sector As on 31.03.2019 As on 31.03.2018 % increase
(+/-)
1 Micro / SHG Finance 208 151 37.74
2 Weaker Sector 11423 11324 0.87
3 SC/ST beneficiaries 1667 2333 -28.54
4 Minority Community 2924 2887 1.28

5. MPO I RTANT SCHEMES/ PROJECTS OF THE BANK:

5.1. Credit flow to retail Sector

Bank is providing retail loans for salaried persons, professionals, businessmen and pensioners for purchase of housing properties/ plots, repair/ renovation of house, purchase of consumer durables, two/four wheeler vehicles, education and loan for other personal needs etc. The retail loan portfolio of the Bank is ` 18806 Crore.

(` in Crore)
Scheme Brief Description Portfolio as of Mar'19 NPA %
1 Maha Super Housing Loan Scheme Housing Sector being the thrust area, Bank has various Housing Loan schemes in place to meet the needs of all economic segments. 12052.94 4.41
Bank offers housing loan for "purchase / construction of new / existing house / flat, repairs / renovation / alteration of existing house / flat, purchase of plot and construction thereon"
2 Maha Super Car Loan Scheme and M a h a b a n k vehicle Loan scheme Bank has launched schemes for purchase of New four wheeler i.e. Car, Jeep, Multi Utility vehicles (MUVs), SUV etc. for personal use.(i.e. not for hiring/ferrying passengers) for individuals (18 years and above). 1317.35 2.97
3 Model Education Loan Scheme Bank is implementing Model Education Loan Scheme as per IBA guidelines and provides hassle free Education loan to all meritorious and deserving students (Indian National) for pursuing higher studies / education in India and abroad. Bank has introduced Mahascholar Education loan Scheme to provide financial assistance/ support to meritorious students for pursuing higher studies / education in courses conducted by the Premier Educational Institutions in India as a differentiated product as an offering for the premier institutions and to tap the available opportunities under the segment. Bank is also focusing on tie ups with premier institutions to have continuous flow of business in the retail portfolio. 1086.52 6.90
4 Loan Against Self-Occupied Property Bank has introduced Loan Against Self-Occupied Property in which loan is given to the borrower against the property. The end use of the loan is for meeting varied personal needs like Children's Education, marriage of children, medical treatment, travel/ tour expenses, buying vehicle or hi- tech gadgets, other domestic needs etc. 146.69 0.19
5 Maha bank Top up Loan Scheme In order to extend additional credit support to existing housing loan borrowers as well takeover of existing housing loans of other banks with additional facility of Top- up Loan, Bank has launched "Mahabank Top Up loan Scheme". Under this scheme credit is extended for repair / renovation / furnishing of house, children's education, marriage of children, medical treatment, buying a vehicle or hi-tech gadgets and other domestic needs etc 235.70 0.78

 

6 Maha bank Gold Loan Scheme With a view to tap the potential of gold loans as a lucrative asset and to cater to the needs of meeting other personal expenses, whatsoever which include personal expenditure for varied needs like marriage, higher education, medical emergencies, business travel etc, Bank has launched a retail loan product as "Mahabank Gold Loan Scheme" w.e.f. 26.09.2014. 106.69 2.38
7 Maha bank Aadhar Loan Scheme To cater to the needs of our existing pension account holders in meeting their personal expenses, pilgrimage, medical and domestic needs etc; Bank has re-launched "Mahabank Aadhar Loan Scheme". 526.48 1.12

5.2. Centralized Processing of loans

Bank has established Centralized Processing Cells (CPCs) for processing and sanctioning commercial advances at all its 30 Zones to improve the TAT in facilitating timely credit.

In addition, total 31 CPCs for retail credit are functioning in all Zones. In future Bank will increase the number of CPC Retail as per location requirement and business potential.

5.3 Door Step Banking Services

Bank is providing Door Step Banking Services for its high end Customers. The services include corporate and retail cash pickup and delivery & cheque collection services.

5.4 Alternate Delivery Channels

5.4.1 Internet /SMS/Phone Banking

There was an increase of 18% in Internet Banking, 28% in Phone Banking and 33% in SMS banking over the previous year.

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

In the current financial year over 11 crore digital transactions were carried out through various channels.

5.4.2 Mobile Banking

1. Maha Mobile functionality has been customized and simplified for increasing enrolments.

2. A user manual on Internet Banking & New Maha Mobile functionality is prepared & sent to field staff for ready reference & marketing of the technology based products.

6. CORPORATE SOCIAL RESPONSIBILITY:

The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune district of Maharashtra have been undertaking various rural developmental activities for the benefit of farmers' viz. Vermi compost, re-development of saline Soils, soil testing etc. Bank has established Soil Testing Lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil Testing Laboratory has analyzed 5506 Soil and Water samples in the year 2018-19 and accordingly counseling is done. Farmers from the districts of Pune, Ahmednagar, Sholapur and Satara are taking benefit of the lab.

A Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF) established by the Bank, undertakes various projects and village improvement programmes. MARDEF is imparting training to farmers on various subjects in agriculture. Trust has implemented 156 training programmes for farmers at RDC Bhigwan and Hadapsar and has benefited 10753 farmers from April 2018 to March 2019.

The Bank has established Seven Mahabank Self Employment Training Institutes (MSETI) for providing training to rural youth and women to enable them to acquire skills for self-employment through small business enterprises. The Institute has seven centers located at Pune, Nagpur, Aurangabad, Amravati, Jalna, Thane and Nasik. The Institute has so far conducted

1203 training batches & imparted training to 30307 educated unemployed youths. The settlement rate is 70 per cent.

Gramin Mahila Va Balak Vikas Mandal (GMBVM), an NGO formed by Bank of Maharashtra is actively involved in formation, nurturing, training and ensuring linkage of SHGs to Bank Credit.

The Bank has opened Financial Literacy Centers in seven Lead

Districts namely Pune, Nasik, Aurangabad, Satara, Jalna,Thane and Palghar for creating awareness about banking schemes.

FLCCs have contacted 77141 beneficiaries during FY 2018-19.

Rural Self Employment Training Institutes (RSETIs) have conducted 198 training batches and trained 5061 candidates during FY 2018-19.

7. LEAD BANK SCHEME:

7.1 Lead Bank Scheme

The Bank has Lead Bank responsibility in seven districts of

Maharashtra State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane. Every year district credit plans for the districts are prepared and implemented with the cooperation of other banks as well as in coordination with District Collectors of respective Districts.

7.2 State Level Bankers' Committee

The Bank is the Convenor of State Level bankers' Committee (SLBC) for the State of Maharashtra and prepares State Annual Credit Plan. The Priority Sector plan for the year 2018-19 was for ` 4,34,591 crore which is one of the highest in the country. The same was approved in a special meeting held under the Chairmanship of Hon'ble Chief Minister of Maharashtra. SLBC also ensures holding of quarterly meetings regularly to oversee the implementation of State Annual Credit Plans, Priority Sector lending and Govt. sponsored schemes in the State. Apart from regular SLBC meetings, various other meetings are also organized by SLBC to coordinate between various members banks, State Government, Government Agencies, Reserve Bank of India, NABARD and the Central Government. SLBC coordinates a network of more than 16,700 bank branches in the state.

SLBC has always been very proactive in the event of natural calamities if any, by issuing necessary guidelines in respect of relief measures, organizing special meetings and guiding the members whenever necessary.As SLBC convener, Bank of

Maharashtra coordinated implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A total of 248 lakh accounts have been opened in the State. The State has already been declared as saturated for the purpose of opening of accounts. However, the process of opening of accounts is continued. SLBC also coordinates implementation of other Social Security schemes of the Central Government in the State.

S L B C Maharashtra has received award for highest Aadhar seeding of PMJDY accounts from Department of Financial Service, MOF New Delhi.

7.3. FINANCIAL INCLUSION / PMJDY

Scheme Particulars 2018-19 2017-18
FI Plan No of Transactions by BCA (in lakhs) 133.17 110.74
Amount of transactions (` in crore) 7546.75 5764.23
PMJDY No. of PMJDY accounts (in lakhs) 56.67 51.57
Of Which Aadhaar Seeded 50.36 42.57
% OF Aadhaar Seeding 88.87 82.55%
Of Which Mobile Seeding 43.84 38.97
% of Mobile Seeding 77.36 75.57%
Balance in PMJDY A/c (in crore) 1466.43 1148.93
Average Bal. per account actual 2587 2228
Zero Bal. PMJDY A/cs (in lakh) 15.35 16.02

The Bank has a full-fledged call center with toll free number 18001022636 for redressal of PMJDY grievances.

The Financial Literacy material has been prepared in vernacular languages and supplied to all Branches / Bank Mitra for supplying the same to accountholders during FLC camps.

Financial literacy camps are organized in different schools in districts of Maharashtra. All skilling centers /ITI's are mapped under financial literacy project Bank has been awarded for excellent performance in the field of financial inclusion from prestigious institutes like IBA, DFS, and Economic Times.

8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS :

8.1 Performance of regional rural Bank

Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the Bank, having its Head Office at Aurangabad,

Maharashtra State. Total no of branches as on 31.3.2019 stood at 413 in its area of operation covering 17 out of 36 districts of Maharashtra state.

All 413 branches and controlling offices are now under CBS.

MGB had opened 5 new branches during the year 2017-18.

Performance highlights are as under:

Bank has achieved total business of `15690.86 Crore.

Bank for the second time in a row crossed `200.00 Cr operating profit by achieving`229.96 Cr operating profit.

Net profit stood as` 86.52 Crore as on 31.03.2019.

Bank has achieved most of the target under MoU DAP given by sponsor Bank for the financial year 2018-19 in the major key performance parameters, as under:

(Amount in Crore)
Performance Parameter Target fY Actual as on
2018-19 31.03.2019
1 Growth in Total Deposit (%) 12.51 17.38
2 Cost of Deposit (%) 5.01 5.02
3 Cost of Funds 5.14 5.10
4 Operating Profit 200.00 229.96
5 Net Profit before tax 85.00 86.52
6 Non-Interest Income 91 75.87
7 Operating Profit per employee 0.118 0.139
8 Operating Profit per Branch 0.487 0.557
9 Net Profit per employee 0.050 0.052
10 Net profit per branch 0.207 0.209
11 Cost to Income Ratio 50.37 47.38
12 Net Interest Margin 3.51 3.55
13 Closing NPA 390.00 291.88
14 Recovery in Write off 4 3.13

Under Pradhan Mantri Jan Dhan Yojana surveys of all allotted

898 SSAs and 80 wards were conducted for identification of households having no bank account. The Bank has covered all allotted SSAs by engaging BCAs. Total 13.71 lakh PMJDY accounts have been opened till 31.03.2019 and 8.53 lakh RuPay ATM debit cards have been issued to PMJDY account holders. Maharashtra Gramin Bank has actively participated in the PMJJBY, PMSBY and APY as well as the PMMY scheme declared by GoI, DFS.

Highlights during the Year 2018-19

1. On boarding to Central KYC Registry (CKYCR), on boarding to BHIM UPI platform.

2. Establishment of payment acceptance infrastructure and digital payments in rural are through micro ATMs, BHIM Aadhar payment devices.

3. Dual authentication at BC points for SHG transactions.

4. Bank has introduced Two "Mobile ATM Van" under financial inclusion funds of NABARD.

5. Setting up of Aadhar Enrollment centers.

6. Bank implemented AML, KYC & CFT module under PMLA- 2012.

7. Host to Host (H2H) implementation of NACH.

8.2 Performance of METCO

The Maharashtra Executor & Trustee Company Pvt. Ltd., the

100% subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide services auxiliary to banking such as:

Consultation, Drafting & Execution of will

Consultation, Drafting and Management of Private Trusts / Public Trusts

Management of investments & house properties as attorney

Guardianship of minor's property

Consultation for sale/purchase of property

The Company is located at Pune having its branch units at Pune, Vashi-Mumbai, Thane and Nagpur. It is managing about

1008 Public & Private Trusts. During the year, additional 32 Wills were added making total 1155 Will in its custody for execution.

At present, the Company manages properties both movable and immovable of 21 clients under the Power of Attorney. The Company also acts as the Trustees in respect of 99 policies under Married Women's Property Act and as Court appointed

Guardian of minor's property in 2 cases.The Company also acts as Managing Trustees of nearly 20 trusts and catalysts its social responsibility by extending help to poor people. During the Current FY Company has extending approx. `25 lacs to nearly 100 beneficiaries.

The net profit of METCO for F.Y. 2018-19 was` 82.74 lakh.

9. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY:

During the year 2018-19, the Bank has achieved various remarkable achievements in the fieldof Official Language implementation:

1. Bank was awarded "Rajbhasha Kirti Puraskar" for better implementation of Rajbhasha Hindi, which is the highest award for Rajbhasha. Shri A. C. Raut, Executive Director, Bank of Maharashtra received this prestigious award at the hands of Hon'ble Vice President of India, Shri M. Venkaiah Naidu in a grand function arranged at Vigyan Bhawan, New Delhi on 14th September, 2018.

2. Bank was awarded prestigious Skoch Order-of-Merit Award on 22 December, 2018 at New Delhi for Better Implementation of Rajbhasha. In Banking Industry, our bank is the first to receive this Award for Hindi Implementation.

3. The Town Official Language Implementation Committee,

Mumbai has secured Third Prize from the Rajbhasha Vibhag, Ministry of Home Affairs, Government of India for better implementation of Hindi. Our Bank is the convenor Bank for the committee.

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

5. Various Town Official Language Implementation

Committees convened by other Banks have awarded Kolkata, Raipur, Jaipur and Amaravati Zones for excellent implementation of Official Language.

6. Hindi day function was arranged at Head Office, Pune on

09th October, 2018. Shri A. C. Raut, Executive Director of the Bank presided over the function. Shri Raza Murad, renowned Hindi actor and social worker was the

Chief Guest. Shri R. P. Marathe, MD & CEO, Shri R.K. Gupta, Executive Director & Shri Rajkiran Bhoir, General Manager were also present in the function. Winners of the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.

7. An All India Rajbhasha Seminar was organized in Pune for all the Hindi Officers of the Bank. Shri R. P. Marathe, Managing Director & CEO of the Bank inaugurated the seminar.

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

9. Bank of Maharashtra is the convenor Bank for Town

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

10. Committee of Parliament on Official Language visited our Delhi Zonal Office, Indore Zonal Office, Mumbai Zonal Office & Rajkot branch, (Ahmedabad Zone) during the year and reviewed Official Language Implementation work of the

Bank. The honorable members of the Committee expressed their satisfaction regarding progressive use of Hindi and the implementation of new initiatives by the Bank.

10. SECURITY:

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

1. Protect the bank's assets such as Cash, Gold, Documents and Valuables at branches, Administrative offices,

Currency chests, Data Centre, other critical centres and Security measures for Cash and Valuables.

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

3. Measures to counter manmade disasters and natural calamities.

During the FY 2018-19, proactive steps have been taken on the physical security requirements in the Bank after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of bank robberies, breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any eventuality.

11. SECRETARIAL AUDIT:

Pursuant to Regulation 24A of SEBI (Listing Obligations and

Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019, Bank had appointed M/s. Apte Joshi & Associates, Practicing

Company Secretaries, Pune as a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year 2018-

19. The Secretarial Audit Report is annexed to this Report.

There is no Secretarial audit qualification for the year under review.

12. DIRECTORS' RESPONSIBILITY STATEMENT:

The Directors confirm that in the preparation of the annual accounts for the year ended 31.03.2019:

The applicable accounting standards of the Institute of Chartered Accountants of India, have been followed along with proper explanation relating to material departures, if any;

The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, are consistently applied and proper disclosures are made for changes, if any;

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

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

The accounts have been prepared on a going concern basis.

13. CHANGES IN THE Board OF DIRECTORS:

During the year 2018-19, the following changes took place in the Board of Directors:

Shri R. Thamodharan was reappointed as Shareholder Director of Bank w.e.f 30.06.2018.

Shri A.S. Rajeev took charge as Managing Director & CEO of the Bank w.e.f 02.12.2018 in place of Shri R.P.

Marathe, who completed his term as MD & CEO of Bank on 30.11.2018.

Shri Hemant Tamta was appointed as Executive Director of the Bank by the Central Government w.e.f 31.12.2018 in place of Shri R.K. Gupta, who completed his term of Executive Director of Bank on 30.12.2018.

Dr. Archana Dholakia was reappointed by Central Government as Director of Bank w.e.f 01.03.2019. She completed her earlier term as Director of Bank on 27.01.2019.

14. BUSINESS RESPONSIBILITY REPORT:

As per the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2018-19 of the Bank has been hosted on the Bank's website i.e www.bankofmaharashtra.in. Any member interested in obtaining a physical copy of same may write to the Company Secretary of the Bank.

15. ACKNOWLEDGEMENT:

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

For and on behalf of the Board of Directors

Place : Pune (A.S. RAJEEV)
Date : 29th April, 2019 Managing Director and CEO

   

Bank of Maharashtra Company Background

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

Bank of Maharashtra Company Management

Director NameDirector DesignationYear
G SreekumarDirector2018
R ThamodharanDirector(Shareholders)2018
Chandrakant BhagwatCompany Secretary2018
Deendayal AgrawalDirector2018
Alekh C RoutExecutive Director2018
Vandita KaulDirector2018
A S RajeevManaging Director & CEO2018
Hemant Kumar TamtaExecutive Director2018
Archana Ravindrarai DholakiaDirector(PartTime NonOfficial)2018

Bank of Maharashtra Listing Information

Listing Information
BSE_500
BSE_PSU
CNX500
BSESMALLCA
PSUBANK
BSEALLCAP
BSEFINANCE
SML250
MSL400

Bank of Maharashtra Finished Product

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

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