The Board of Directors have pleasure in presenting the Bank’s Annual Report along with the audited statement of accounts and the cash flow statement for the year ended 31st March 2017.
Performance: Domestic Business:
- CASA deposits increased by 30.24% on Y-O-Y, SB deposits grew by 31.92% and CD by 20.86%. Share of low cost deposits (CASA), in domestic deposits improved from 34.18% as on 31-03-2016 to 39.84% as on 31.03.2017.
- Domestic deposits increased by 12.23% from Rs. 3,77,309 crore to Rs. 4,23,457 crore.
- Advances registered a growth of 6.38% from Rs. 2,68,579 crore to Rs. 2,85,725 crore.
- Priority Sector lending constituted 40.47% of Adjusted Net Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 19.44%.
- Schematic Retail Credit grew by 10.63% from Rs 37,777 crore to Rs 41,793 crore.
- Overall, Domestic business has grown by 9.80% from Rs. 6,45,888 crore to Rs. 7,09,183 crore during FY 2016-17.
- Overseas business has de-grown by 9.70% during FY 2016-17 compared to last year de-growth of 2.87%.
- Global business has grown by 4.38% during FY 2016-17 compared to last year de-growth of 5.19%. Total Business mix (Deposits Advances) reached at Rs. 9,33,820 crore, a growth of Rs. 39,153 crore.
- Total deposits increased by 5.27% to Rs. 5,40,032 crore.
- Advances increased by 3.18% to Rs. 3,93,788 crore.
- Operating profit Rs. 9,733 crore and Net loss Rs. 1,558 crore.
- Capital Adequacy Ratio at 12.14% as against 10.25% prescribed by RBI (under Basel III).
- Net Worth at Rs. 19,907 crore, declined by (1.31%) over March 2016.
- Book value per share Rs. 188.62.
- Gross NPA ratio at 13.22% as on 31.03.2017.
- Net NPA ratio at 6.90% as on 31.03.2017.
- The Financial performance of the Bank for the year 2016-17 is summarised below:
(Amount in crore)
Net Interest Income
Provisions / Contingencies
Earnings per share (Rs.)
Book Value per share (Rs.)
Return on Equity (%)
Return on Average Assets (%)
Key Financial Ratios are presented below
Yield on Advances
Yield on Investment
Yield on funds
Cost of Deposits
Cost of funds
Net Interest Margin
Non-Interest Income to Operating Expenses
Other Income to Average Working Fund
Operating Expenses to Average Working Fund
Staff Expenses to Average Working Fund
Other Operating Exp. to Average working Fund
Asset Utilization Ratio
Non-Interest Income to Total Income
Non-Interest Income to Net Income
Cost to Net Income Ratio
- Bank of India has been ranked as the 2nd Most Trusted Bank in the PSU Bank category by Economic Times.
- Bank awarded as Best Bank for Managing IT Ecosystem among Large Banks in IDRBT Banking Technology Excellence Awards for FY 2015-16
- Bank received the Best Bank Award for Electronic Payments among Large Banks from IDRBT Banking Technology Excellence Awards for FY 2015-16,
- In-house Magazine ‘Taarangan’ conferred with International award for Best In-house Magazine - 7th CMO Asia Award at Singapore.
During the year Bank has reised Rs.1338 crore by issue of 12,06,60,113 fresh equity shares to Government of India at the price Rs.110.89 per share.
The Bank has also received Rs.1500 crore from Government of India and Rs.221.92 crore from Life Insurance Corporation of India towards share application money for subscription of equity share on preferential basis. The same is treated as CET-1 Capital for CRAR purpose on 31.03.2017 in accordance with RBI circulars.
During the year Bank has also received additional Tier-I capital Bonds for an amount of Rs.2500 crore and Tier-II Bonds for an amount of Rs.2500 crore. These bonds are listed on the stock Exchanges.
- As per Basel III framework, the Bank’s Capital Adequacy Ratio was 12.14% which is higher than the regulatory requirement of 10.25%
- Details of Capital Adequacy (BASEL-III) are :
DIRECTORS’ RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2017:
a) The applicable accounting standards have been followed along with proper explanation relating to material departures, if any,
b) The accounting policies framed in accordance with the guidelines of the Reserve Bank of India were consistently applied. Reasonable and prudent judgments 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 of the profit and loss of the Bank for the year ended March 31, 2017,
c) Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities,
d) Annual accounts have been prepared on a going concern basis,
e) Internal financial controls system to be followed by the Bank were laid down and that such internal financial controls are adequate and were operating effectively,
f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
(Rs. in crore)
BASEL - III
CET 1 Capital
Additional Tier I Capital
Tier I Capital
Tier II Capital
Risk Weighted Assets
The Board expresses its gratitude to the Government of India, Reserve Bank of India and Securities and Exchange Board of India and other regulatory authorities for their valuable guidance and support. The Board also thanks financial Institutions and correspondent banks for their co-operation and support. The Board acknowledges the unstinted support of its customers, business associates and shareholders. The Board also wishes to place on record its appreciation of staff members for their dedicated service and contribution for the overall performance of the Bank.
For and on behalf of the Board of Directors
Managing Director & CEO
Place : Mumbai
Date : 9th June, 2017