Dear Shareholders,

I have great pleasure in welcoming you all to the 23rd Annual General Meeting of your Bank and present the Annual Report for the Financial Year ended 31st March 2017.

Before I present the performance highlights of the Bank, I would like to place before you the macro-economic environment in which your Bank has performed during the year gone by: -


Indian Economy recorded GDP growth of 7.1% during FY 2016-17. Fiscal deficit, current account deficit & inflation were generally contained. Industrial production grew by only 0.4% during Apr''''16 to Feb''''17 period though Exports grew by 4.71% (in Dollar terms) during FY''''17. Further, certain key Sectors like Infrastructure, Power and Iron & Steel continued to remain under stress though the Government of India has initiated various steps for early resolution of the issues plaguing these sectors. Now, I would like to present before you the Performance Highlights of the Bank for FY''''17: -


- During FY''''17, your Bank achieved a Business Mix of Rs, 3,85,777 Crores registering a growth of 6.41%; with Deposits and Gross Advances growing by 4.99% and 8.33% respectively

- CASA deposits grew by 26.95% and Retail Term Deposits (below Rs,1 Crore) by 8.20%

- Cost of Deposits was reduced from 7.19% (during FYRs,16) to 6.33% (during FYRs,17)

- Thrust Area for Advances continued to be Retail, Agriculture & MSME (or RAM) Advances; which, as of 31.03.17, constituted 48% of total Advances portfolio - up from 46% as on 31.3.16

- Out of Bank''''s total RAM portfolio, Retail Credit grew by 37.15% and as of 31.03.17, it constituted 15.34% of total Advances against 12.12% as of 31.03.16

- Priority Sector (PS) Advances of your Bank were above the minimum regulatory requirement of 40% and stood at 41.23% of Adjusted Net Bank Credit (ANBC) as on 31.03.17

- Gross NPA level stood at 13.73% and Net NPA level at 8.96% as on 31.03.17

- Operating Profits grew by 13.26% during FY''''17 to '''' 4170 Crores. However, due to increase in provisions & contingencies mainly on account of higher slippages, Bank registered a Net Loss of Rs, 1094 Crores during FY''''17

- Business per Employee and Business per Branch both grew further during FY''''17 and touched figures of Rs,17.90 Crores and Rs,162.36 Crores respectively as on 31.03.17

- Capital Adequacy of your Bank stood at 11.64% as of 31.03.17; with Tier-1 Ratio being 8.88%

- Book value per share of your Bank was Rs, 365.70 as of 31.03.17

- In line with the Govt. initiatives, your Bank has identified increasing the volume of transactions through Digital Channels as one of its top priorities and I am pleased to confirm that their level has been recording a continuous increase - touching level of 54.51% as of


- Concurrently, Bank continued to augment its Onsite Delivery Channels too; with their total number touching 4997 as of 31.03.17 (comprising of 2376 Branches and 2621 ATMs)


Your Bank has been vigorously implementing various Financial Inclusion programmes of the Government of India and RBI. With the objective of bringing Banking services to the doorstep of the un-banked segment of the Society, your Bank has opened 39.61 Lac accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) till 31.03.17 and in more than 93% of these accounts, RuPay Cards have also been issued. Further, to meet the objective of delivering much-needed Credit to the Micro Enterprises (which constitute a fragmented & largely unfunded, yet a vital & vibrant component of our economy at the grass-root level); your Bank has worked in Campaign mode and I am pleased to inform you that your Bank has surpassed the target of Rs, 1800 Crores allotted to it under Govt''''s Pradhan Mantri Mudra Yojana (PMMY) during FY''''17.

Other Financial Inclusion programmes of GoI such as Pradhan Mantri Bima Yojanas, Atal Pension Yojana, Pradhan Mantri Fasal Bima Yojana, etc continue to be supported by the Bank.


During FY''''17, your Bank has completed implementation of new structure with the select objectives of (i) growing the Bank in terms of business & profitability, (ii) improving its levels of compliances across the board, and (iii) significantly expanding its outreach. Broadly, these objectives are being achieved by segmenting the entire workforce into Verticals; which, in turn, are sharply focused on well-delineated Business opportunities and which are ably-assisted by various Support Verticals.


To keep pace with the changes in employees'''' learning-requirements following implementation of new organization structure, your Bank has renewed its focus on Capacity Building during the year. All the 6 Human Resource Development Institutes (HRDIs) of the Bank are actively imparting instruction through recently-adopted innovative methodologies such as E-learning, Case-studies, Role plays, Group presentations by the participants, etc. As a result of this focused approach, all the HRDIs together logged a total of 90,203 Training Man Days during FY''''17. Further, with a view to augment the quality of their learning processes, 3 out of the 6 HRDIs have already secured ISO certification by the end of March.


Recently, Government of India has notified the Banking Regulation (Amendment) Ordinance 2017. This Ordinance enables RBI to direct the Banks to initiate bankruptcy proceedings against defaulting companies under the Insolvency & Bankruptcy Code. Further, RBI will also set-up/ expand the Oversight Committee to enable the Banks to more effectively deal with the stressed assets that are currently choking the sector.

Further, Goods & Service Tax (GST) is expected to be implemented from 1st July 2017, which is going to replace multiple central and state taxes & levies and make our country a seamless national market that would result in an all-around growth of the economy in mid- to long-term. As an observer put it succinctly - it would be like the country signing a Free Trade Agreement with itself!

With the implementation of various policy initiatives, already undertaken by Government of India & RBI to boost the country''''s economy; it is expected that banking sector growth will also rebound. Your Bank has already positioned itself well in order to tap into this expected growth.

During the current financial year, Bank would further intensify its focus on increasing its CASA Deposits, augmenting its RAM Portfolio, maximizing the Recoveries & Up-gradations and boosting the usage of Digital Banking channels.


I would like to take this opportunity to welcome Shri Prashant Goyal (Government of India Nominee Director), Shri Himanshu Joshi (Executive Director) and Smt Mala Srivastava & Shri Sanjay Kapoor (Part-time NonOfficial Directors), who joined the Board of Directors of the Bank during the year.

I would also like to place on record our appreciation for valuable contributions made to the Bank by Shri Arunish Chawla (Government of India Nominee Director), Shri Narendra J Kotiawala (Officer Employee Director) & Shri Kingshuk Bhattacharya (Workmen Employee Director); who laid down office as Directors of the Board of the Bank during FY''''17.

On behalf of the Board of Directors and on my own behalf, I express my sincere gratitude to all the Shareholders of the Bank for reposing their faith in the Bank & the Management. I also think every employee of the Bank for their dedication and our loyal customers for their continued patronage. My sincere thanks to the Ministry of Finance, Govt. of India and Reserve Bank of India for their continued guidance and support. I solicit your continued cooperation and patronage in future also.

Animesh Chauhan

Managing Director & Chief Executive Officer

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

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Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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