DIRECTORS’ REPORT 2016-17
The Bank''''s Global Business reached Rs,1041197 crore as at the end of March''''17 reflecting a growth of 7.9% on a yearly basis. While the Global Deposits of the Bank at Rs,621704 crore grew by 12.4%, Global Net Advances recorded growth of 1.7% to reach Rs,419493 crore as on 31st March''''17. The Bank recorded a CASA growth of 26.5% and the share of CASA to domestic deposits increased to 46%.
In terms of Bottom-line parameters, the Bank''''s Operating Profit increased from Rs,11339 crore as on 31st MarchRs,16 to Rs,14565 crore as on 31st March''''17.
In this backdrop, your Directors take pleasure in placing the Bank’s Annual Report for FY’17 along with its audited Annual Financial Statements.
Our Performance A. Financial Highlights A.1. Balance Sheet
31st March’ 16
A. 2. Profit
A.3. Key Ratios
Cost of Funds
Yield on Funds
Return on Equity (Net Worth)
Net Interest Margin (Domestic)
Return on Assets
Cost to Income Ratio
B. Operational Highlights
i. PNB crossed the Total Business Figures of Rs,10 lakh crore. CASA deposits of the Bank also crossed Rs,2.6 lakh crore mark.
ii. PNB Tab Banking: Saving Bank Account opening through Tablet PC Based Solution was launched to provide quality services to HNIs and NRIs at their door step. It caters to HNI customers and family members, salary accounts of educational institutions, corporate bodies & remotely placed Army cantonments.
iii. Retail Asset Processing Cell (RAPC): The Bank has revamped the Retail Credit Dispensation Model and replaced the existing model with RAPC model from
01.04.2016. RAPCs undertake all the activities from receipt of loan application through branches till sanction of retail loan which has resulted in qualitative improvement in loan processing.
iv. Back office for account opening: To strengthen our KYC system, the Bank has started opening saving and current account at centrally located Back office at each Zone.
v. For bringing more efficiency, Financial Inclusion Division (FID) and Priority Sector & Lead Bank Division (PS&LB) were merged to form Agri Business & Financial Inclusion Division. Retail Assets Division (RAD) and Resources Mobilization Division (RMD) were merged to form Retail Banking Division.
vi. PNB wallet named as “PNB Kitty” was launched.
vii. PNB also introduced Contactless Credit Cards namely “PNB Wave and Pay”. Another mobile application, PNB Yuva was launched for the youngsters.
viii. ATM Profitability Model has been designed for effective functioning of ATMs.
ix. Mr. Virat Kohli, a young and energetic Indian cricketer has been chosen as brand ambassador of the Bank because of his mass appeal to the youth of the country.
x. Sector 10, Dwarka Metro Station in New Delhi was branded as PNB Dwarka Metro Station.
C. Asset Quality
The Bank''''s Gross NPA stood at Rs,55370 crore in FY''''17 (FY''''16: Rs,55818 crore) and the Net NPA stood at Rs,32702 crore in FY''''17 (FY''''16: Rs,35423 crore). In terms of ratios, Gross NPA ratio stood at 12.53% in FY''''17 (FY''''16: 12.90%) and Net NPA ratio stood at 7.81% in FY''''17 (FY''''16: 8.61%).
Gross NPA as well as Net NPA percentage has come down. PCR has also improved from 51.06% in FY''''16 to 58.57% in FY''''17. In absolute terms also both Gross NPA and Net NPA as on 31.03.17 reduced as compared to 31.03.16.
Initiatives taken during FY’17
- During the year, bank initiated “Pan India Recovery Drive” (PIRD) giving targets for each quarter to each Circle and Zone. These PAN India drives were successful in increasing cash recovery and up gradation during the year.
- The Bank also organized Mega Rin Mukti Shivirs for giving impetus to recovery in small advances to expedite the pace of settlement during the year.
- As on March''''17, 1009 borrowers were declared as willful defaulters as per RBI guidelines.
- One Time Settlement (OTS) was also explored as a tool for expediting recovery during FY''''17; OTS in 90165 accounts was approved, Rs,906 crore were recovered in approved OTS cases.
- NPA accounts as on 31.03.17 with aggregate outstanding of Rs, 2981 crore were upgraded to standard category. Total cash recoveries in NPA accounts amounted to Rs,10677 crore.
D. Industrial Restructuring
- Under the Scheme for Sustainable Structuring of Stressed Assets (S4A), the Bank mandated 12 accounts with outstanding of Rs, 2955 crore as on 31.03.2017.
- During FY''''17, the Bank invoked Strategic Debt Restructuring (SDR) in 9 accounts with outstanding of Rs, 2564 crore as on 31.03.2017.
- During FY''''17, 5/25 scheme was implemented in 10 accounts with outstanding of Rs,2334 crore as on 31.03.2017.
- Out of the existing 76 Corporate Debt Restructuring (CDR) restructured accounts (with outstanding Rs,11251 crore as on 31.03.2017), in 14 accounts, PNB was assigned the role of Monitoring Institution. During the current year, the successful exit was finalized in 4 CDR accounts with outstanding of Rs,285 crore on payment of recompense amount.
- The Bank has adopted the policy for New Framework for Revival and Rehabilitation (FRR) of MSMEs w.e.f.
14.07.2016. During FY''''17, 12 accounts were restructured under FRR for MSME with outstanding of Rs,77 crore.
- For MSMEs, which cannot be covered under CDR/ SDR/S4A/FRR, the Bank put in place a transparent mechanism for restructuring of debts of potentially viable units. During FY''''17, 21 accounts were restructured with outstanding of Rs,2804 crore.
E. Digitalization: Towards ‘Digital PNB’
Moving towards cashless society and paperless banking, the Bank undertook several initiatives to provide better, prompt and efficient services to the customers.
Alternative Delivery Channels:
a. Internet Banking: As on 31.03.2017, around 0.93 crore customers (retail and corporate) were enrolled in internet banking service. During this year, many new features were added which included Debit card hot listing and Digital signature as a second factor of authentication for doing transactions in Retail and Corporate Internet Banking.
b. Mobile Banking: As on 31.03.2017, the Mobile Banking Users were 0.71 crore.
c. SMS Alert Services: As on 31.03.2017, around 4.65 crore customers subscribed to SMS Alert Services. The service was further extended to 5 RRBs. OTP and SMS alert was introduced in multilingual languages.
d. ATMs: During FY''''17, 1218 new ATMs were installed and as an outcome, the total ATM network reached 10681. E-Surveillance systems were installed at ATM sites.Solar UPS were installed to decrease the downtime of ATMs on account of electricity failure. ESQ ATM Monitoring System was installed for on line ATM monitoring and to take prompt corrective/preventive actions in case ATM gets down.
Some of the new initiatives taken during FY''''17 are given as under:
- Launch of UPI (Unified Payment Interface) and BHIM:
A mobile based banking application, called UPI was launched wherein the customers were able to access their Bank accounts opened with different Banks in a single App. Total number of Users Registered as on 31.03.2017 were 467475.
Number of PNB accounts registered for BHIM (Mobile app based on UPI) as on 31.03.2017 are approximately 600000.
- Aadhaar Enabled Payment System: Number of transaction carried out was 90.96 lakh and total amount transacted was ''''3740.23 crore as on FY''''17.
- PNB Kitty: Number of users registered for PNB Kitty, a mobile wallet, as on 31.03.2017 were 87144.
- Green PIN for Debit Card: Green Pin facility was launched to curb physical pin printing for debit card except PMJDY accounts. The Bank saved approximately Rs, 43.00 crore under this green initiative.
- Business Debit Card: Business Debit Card was launched with enhanced transaction limit permitting withdrawal up to Rs,1 lakh from ATMs and e-commerce transaction up to Rs,3 lakh.
- Virtual Card: All wallet users are issued a virtual debit card. This virtual card can be used for e-Commerce transactions.
- Bank introduced Card to card fund transfer facility to transfer funds from one debit card to another debit card.
- Self Service Kiosk: The Bank installed 2561 Cash Deposit /Multifunction Kiosk (including PNB Cash Acceptor cum ATM), and 3378 Pass Book updating Machines across the country. The machines installed in E-lobby are made available to customers 24*7. A real time monitoring tool was implemented for effective monitoring and to reduce the down time.
F. Management Information System
As per RBI guidelines the Bank implemented Standardized Approach for Credit Risk under Basel-III through LADDER (Loans and Advances Data Desk for Evaluation & Reports) system thus enabling calculation of Risk Weighted Assets (RWAs) in respect of Loans & Advances.
During FY''''17, 1534885 Credit Information Reports (CIRs) of prospective borrowers under Consumer category and 31555 CIRs under Commercial category were drawn from CIBIL, Experian, High Mark & Equifax databases.
Around 4.70 lakh Immovable Properties (IP) & Movable properties were registered with Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) by Bank till March''''17.
A total of 47 scenarios were implemented in Anti Money Laundering (AML) solutions. AML solution for five Regional Rural Banks (RRBs), which are sponsored by PNB, was implemented successfully.
The Bank has one of the largest branch networks of 6937 as on 31.03.2017. To fulfill the banking needs of unbanked areas, 178 new branches were added to the vast network of branches during the year.
At present, Bank has its overseas presence in 9 countries by way of 4 branches (2 Hong Kong, 1 Dubai and 1 OBU-Mumbai), 2 Subsidiaries (London and Bhutan),1 Associate (Kazakhstan), 1 Joint Venture (Nepal) and 4 Representative Offices (Sydney-Australia, Shanghai-China, Dhaka-Bangladesh and Dubai-UAE).
H. International Banking
The foreign exchange turnover was Rs,140814 crore for FY''''17 with a growth of 5.18% on YoY basis. The Bank also has an International Service Branch in New Delhi for handling inward remittances. During FY''''17, the Bank handled remittance business of more than Rs,58147 crore, showing a growth of nearly 0.45% YoY.
The Bank has Rupee Drawing Arrangements (RDA) with 36 Exchange Houses (30 in the Gulf, 2 in Singapore, 2 in the USA, 1 in Australia and 1 in Canada) to facilitate remittance from NRIs.
Organizational Restructuring: A four tier structure was introduced from 01.04.2016 with Zonal offices linking Head Office to Circle Offices and branches.
Employee Suggestion Scheme: Around 460 suggestions were perused and cash incentives were given to 14 Staff members for suggestions accepted/implemented under the Employee Suggestion Scheme.
Demonetization exercise: At the time of demonetization, the Bank issued regular guidelines, installed suitable checks in Core Banking System and scrutinized irregularities. Steps were taken to ensure proper implementation of guidelines/ directives received from RBI/MOF. The field functionaries were sensitized on handling of Specified Bank Notes and introduction of new series of currency notes and mobile ATMs were placed in Hospitals, Railway Stations, Joggers'''' parks, Markets, Business establishments and Offices, etc. Bank could mobilize huge amount of CASA due to the goodwill created during the period.
PNB Tab Banking: Saving Bank Account opening through Tablet PC Based Solution was launched as a step further to provide quality services to HNIs and NRIs at their door step. It caters to HNI customers and family members, salary accounts of educational institutions, corporate bodies & remotely placed Army Cantonments.
Retail Asset Processing Cell (RAPC): The Bank has revamped the Retail Credit Dispensation Model and replaced the existing model with the introduction of RAPC model made effective from 01.04.2016. RAPCs undertake all the activities from receipt of loan application through branches till sanction of retail loan.
Back office for account opening: To strengthen our KYC system, the Bank has started opening saving and current account at centrally located Back office at each Zone
J. Indian Accounting Standards (IND AS)
The Bank has commenced the process of IND AS (Indian Accounting Standards) implementation for FY''''17 and made a diagnostic study to identify the differences between the current accounting framework and IND AS. Bank has quantified the impact and filed the pro-forma financial statements for the half year ended September 2016 with the Reserve Bank of India.
K. New Initiatives Division
The Bank already has its presence on Twitter and LinkedIn. Further, the Bank opened official Face book page for the public, in the name of ‘Punjab National Bank, HO, New Delhi''''. Virtual debit cards were made available on mobile app PNB Kitty.
L. Business Diversification
- Mutual Fund: During FY''''17, the Bank mobilized total amount of Rs, 4545 crore, Asset under Management (AUM) stood at Rs,814 crore and brokerage earned was Rs, 4 crore.
- Insurance Business
1. Life Insurance Business: Bank''''s earnings from Life-Insurance business during FY''''17 amounted to Rs,110 crore as against Rs,86 crore during FY''''16, showing growth of 28%. Total Business mobilized under Life Insurance since inception was Rs,4152 crore from 566667 policies and thus total earnings amounted to Rs,358 crore.
2. Non-Life Insurance Business: The revenue earned during FY''''17 was Rs, 28 crore as against Rs, 25 crore during FY''''16, showing a growth of 15%. Under ‘PNB-Oriental Royal Mediclaim'''', a customized health insurance policy, 181913 policies were sourced during FY''''17 as against 158175 policies sourced during FY''''16.
- Depository Services: The Bank earned an income of Rs,76 lakh during FY''''17 for providing Depository Services.
- Online Trading Services: An income of 28 lakh was received from Associates on account of Online Trading Activities during FY''''17.
- Merchant Banking: During FY''''17, the Bank handled more than 454000 Application Supported by Blocked Amount (ASBA) applications against 85 issues, blocking an amount of Rs,2597 crore and earning Notional Income more than Rs,6.15 crore.
- Credit Card: Among the PSBs, the Bank is the largest issuer of credit cards and achieved a growth rate of 31% in issuance of credit cards in FY''''17. To enhance the security level of Bank''''s credit cards, EMV Chip cards with PIN were issued. As a result of issuance of credit cards, the Bank''''s fee based income increased to Rs,14 crore.
- PNB Genie, an app full of features was launched. It will act as single point destination for cardholders to operate their PNB Credit Card seamlessly and without hassles.
- PNB National Electronic Toll Collection: PNB
FASTag program is part of National Electronic Toll Collection (NETC) initiative rolled out by NPCI. FASTag is a simple to use, reloadable tag which enables automatic deduction of toll charges
- Merchant Acquiring Business: The Bank installed 38841 PoS terminals and integrated 217 Internet Payment Gateways.
M. Government Business
The Bank partnered with India Post Payments Bank (IPPB)
and provided technology platform alongwith managerial support
at their offices opened in Ranchi and Raipur.
Centralised on-line Collection & Disbursement (COCD)
Portal was developed for the Government for collecting Interest subsidy, Margin Money, CGTMSE Fee, etc. This facility will also benefit weavers to get instant Margin Money Credit directly to their accounts. Other developments are as under:
1. New Pension Scheme (NPS) was made live in offline mode i.e. application will be collected through the Branches which are acting as POP-SP (Point of Presence-Service Provider).
2. NPS contribution was made live through on-line mode for existing PRAN (Permanent Retirement Account Number) holders.
3. EPFO collections were made live through on-line mode and generation of Electronic Verification Code (EVC) for Income Tax return filing.
4. Non-Tax Revenue Portal (NTRP) was introduced to facilitate all banks'''' customers to pay their dues (other than taxes) to GoI and Payment of Equalization Levy through IBS (Online and Offline - both).
5. To bring efficiency in pension disbursement, following facilities were introduced:
- Pension slips were made available in the pension server.
- An e-lobby cum veteran facilitation centre was set up at DiAV, Delhi Cantt. & at Chandimandir, Chandigarh.
- PCDA allocated space for setting up Centralized Pension Processing Cell (CPPC) at Allahabad in its campus.
N. Treasury Operations
Gross Domestic Investment as on 31st March''''17 stood at Rs, 183297 crore up from Rs, 154727 crore as on 31st March''''16 and registered a YoY growth of 18.46%. The average investment as on 31st March''''17 was Rs,175774 crore as against Rs,162548 crore in the corresponding period last year. Interest income from investment portfolio increased from Rs,11935 crore for FY''''16 to Rs, 12439 crore for FY''''17. Total Trading Profit (including derivative) increased from Rs, 999 crore for FY''''16 to Rs, 2654 crore for FY''''17.
Fixed Income (SLR/NSLR): During FY''''17, Bank booked a Trading Profit of Rs,2214 crore from sale of investments in fixed income up from Rs,504 crore during the corresponding period of previous year.
Equity: The Bank booked Rs,168 crore Trading Profit in Equity segment and Dividend income of Rs,96 crore.
Forex: Net Forex income decreased from Rs,1320 crore during FY''''16 to Rs,1155 crore during FY''''17. However, Exchange Profit from treasury operations increased from Rs,386 crore in FY''''16 to Rs,547 crore in FY''''17.
O. Customer Care
Initiatives undertaken during FY''''17 for improvement in customer service included:
- Four Sub-Committee meetings were conducted.
- The Standing Committee on Customer Service held four meetings.
- Officials of the Bank made 1353 incognito visits to branches pan India. Circle Offices took corrective steps to plug the loopholes pointed out by the visiting officials.
Due to increased transparency, the number of complaints received during FY''''17 increased to 35257 as compared to 29654 complaints received during FY''''16. 217 complaints were outstanding as on 01.04.2016 and out of total number of 35474 complaints, 35159 complaints were redressed as on 31st March''''17. The number of complaints pending as on 31.03.2017 was 315 which have since been resolved.
Two awards were passed by office of the Banking Ombudsman during FY''''17. Appeals were filed against the two awards. Appellate Authority has set aside one award passed by Banking Ombudsman, Kanpur while decision is pending under second appeal.
P. Implementation of Official Language Policy
For FY''''17, the Bank achieved all the targets in the parameters fixed by the Govt. of India, Ministry of Home Affairs, Department of Official Language.
During FY''''17, the Bank received more than 120 awards for its excellent performance in the use of Hindi which included prestigious Rajbhasha Kirti Shield - a top most award scheme of Govt. of India, besides RBI Rajbhasha Shield (Consolation Prize in region ‘A'''' & ‘C'''', Third Prize in region ‘B'''' and Second Prize for PNB PRATIBHA in Bilingual Magazine Category) and other Regional Level Awards of Ministry of Home Affairs.
Articles received under various competitions organized during the year 2016, were compiled in the book ‘PNB PRAVAH-Sarjna Ke Naye Aayam’.
Q. PNB’s Subsidiaries and Regional Rural Banks a. PNB Gilts Limited
The Bank has an ownership of 74.07% in PNB Gilts Limited as on 31.03.2017. During FY''''17, Company fulfilled all its obligations as a Primary Dealer in both primary and secondary market. During the year, its Profit before Tax stood at Rs, 257 crore, which is the highest since inception. It made an impressive Trading Profit of Rs,186 crore due to increased churning of portfolio which led to total secondary market outright turnover of Rs,6.5 lakh crore as against Rs, 3.8 lakh crore in FY''''16.
b. Punjab National Bank International Limited (PNBIL)
PNBIL is a wholly owned subsidiary of Punjab National Bank. Total Business of the Company decreased from $2,834 million as at 31st March 2016 to $2,212 million as at 31st March 2017, a year-on-year decrease of 21.95% due to the consolidation exercise undertaken.
The Operating Profit before provisions, tax and dividends for FY''''17 decreased by 47.26% to $20.05 million from $38.26 million in FY''''16. The Total Income decreased by $19.16 million (35.20%) from $54.43 million to $35.27 million. Net Interest Income fell by $12.59 million and Net Trading Income by $6.65 million. The expenditure to income ratio increased to 43.16% from 29.71% despite slight reduction in cost due to lower income.
Gross impaired advances increased to $299.39 million ($144.99 million in 2016) leading to additional impairment provisions of $153.39 million. The net impaired advances increased to $40.83 million in 2017 from $36.37 million in 2016. As a result, the Company declared a loss before tax of $133.34 million.
The Company had a CRAR of 21.70% as on 31st March''''17, and met all other CET1 and Tier 1 regulatory capital requirements (PNB infused $100 million).
c. Punjab National Bank Investment Services Limited (PNBISL)
PNB has 100% ownership in PNBISL. During the year ended March''''17, the Company earned fee based income of Rs,9.03 crore with a total income of Rs,12.14 crore. Profit before Tax for FY''''17 stood at Rs,6.33 crore as against Rs,6.12 crore for FY''''16.
d. DRUK PNB Bank Ltd. Bhutan
PNB has 51% ownership in DRUK PNB Bank Ltd. Bhutan. The Bank is currently operating with a network of 6 branches and 18 ATMs. Profit of the Bank increased from Rs,22 crore during FY''''16 to Rs,25 crore during the FY''''17, showing a YoY growth of 15.25%. Total Business of the Bank stood at Rs,1435 crore, as on 31.03.2017. CASA Ratio of the Bank stood at 57.38% as on 31.03.2017.
Gross Non Performing Loans (NPL) Ratio of the Bank decreased to 3.30% as on 31.03.2017 from 3.96% as on 31.03.2016. The Net NPL ratio of the Bank stood at 1.99% as on 31.03.2017. The Return on Equity (ROE) as on 31.03.2017 stood at 15.99% and Earning per share was ''''3.92 as on 31.03.17.
e. PNB held 51% share in PNB Housing Finance Ltd
(PNBHFL) a subsidiary of the Bank. Subsequent, to the IPO of PNBHFL on 06.11.2016 this changed to 39.08%
f. Regional Rural Banks
At present, five RRBs are sponsored by the Bank. These RRBs are operating in five States, namely, Bihar, Haryana, Himachal Pradesh, Punjab and Uttar Pradesh covering 75 districts with a network of 2386 branches.
Name of Regional Rural Banks / Other Associates
Proportion of Ownership (%)
Madhya Bihar Gramin Bank, Patna
Sarva Haryana Gramin Bank, Rohtak
Himachal Gramin Bank, Mandi
Punjab Gramin Bank, Kapurthala
Sarva UP Gramin Bank, Meerut
The aggregate paid-up capital of these Regional Rural Banks is Rs, 199 crore. Central Government, State Governments and PNB contributed in paid-up capital of these RRBs in the ratio of 50:15:35 respectively. The Bank''''s contribution towards capital of these RRBs is Rs,69.76 crore. The combined Net worth of RRBs as on 31st March''''17 is Rs, 3479 crore.
Performance of RRBs as on 31.03.2017
(Amt. in Rs,crore)
Performance of RRBs
Aggregate Net Profit
Branches under CBS
Profit Per Employee (Rs, lakh)
No. of Loss Making Branches (being 12 month old or more)
R. Awards and Accolades
During FY''''17, in recognition of its performance and initiatives,
PNB received various awards, some of which are:
1. Best MSME Bank Award-Winner (Large Category) by CIMSME.
2. Vigilance Service Excellence Award 2016-17 by Institute of Public Enterprises (IPE) Hyderabad.
3. BFSI Tech Maestro Awards 2016 in Application category for four node cluster by Bitstream Mediaworks Pvt. Ltd.
4. National Payments Excellence Awards 2016 for Aadhaar Enabled Payments System (AEPS) by National Payments Corporation of India (NPCI).
5. Outlook Money Awards 2016- Education Loan Provider (Runners Up) by Outlook Money.
6. CSR Initiatives & Business Responsibility Award-Runner-Up (Large Category) by CIMSME.
S. Future Business Plan of the Bank
Against the backdrop of robust macroeconomic stability, demonetization derailed the growth momentum partially. With the Government reforms measures, however, opportunities across all segments are expected to increase. The Bank did well in challenging situation. The asset quality improved but profitability and credit emerged as other big challenges. The Bank has the potential to deliver more to the shareholders and the strategy for FY''''18 is designed to deliver that potential.
For the next year, the focus areas and objectives would be profitability with stable growth, improvement in asset quality, reduction in risk-weighted assets, sustenance of CASA growth momentum and acceleration in pace of digitalization to align businesses more closely around the needs of the customers. For credit, the Bank will target semi-urban and rural areas where the Bank has significant presence and focus will be on small ticket advances in MSME, Agriculture, Retail, etc. The focus will continue to be maintained on getting qualitative accounts rather than quantitative numbers.
Technology is transforming the way Bank reaches its customers. Increasingly, customers connect with the Bank through smart phones, laptops, tablets and other mobile devices. This is an opportunity we are determined to avail. The Bank through digitization of internal processes will bring in benefits of reduced cycle time, fewer exceptions and lesser costs resulting in greater efficiency. Also, under present circumstances digitalization offers business potentials in terms of installing POS machines, introducing new credit and debit cards, e-wallets, etc.
Looking ahead, we see FY''''18 as another year of challenges, of disciplined implementation of our Strategy to build on the momentum and make decisive progress towards better growth and higher profitability. With focus on cashless economy, Bank will constantly innovate and come up with faster solution for every business need.Hopefully, FY''''18 will be a year where the Bank will take a quantum leap when it comes to digitalization and retail and will emerge as PNB Retail Express on Digital lines.
T. Directors’ Responsibility Statement
The Directors confirm that in the preparation of the annual accounts for the year ended 31st March''''17:
- The applicable Accounting Standards 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, were consistently applied;
- 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 of the profit of the Bank for the year ended 31st March''''17;
- Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India, and;
- The accounts have been prepared on the principle of “going concern” basis.
The Board expressed thanks to the Government of India, Reserve Bank of India, Securities and Exchange Board of India, Stock Exchanges, Bank''''s customers, public and the shareholders for valuable support, continued patronage and confidence reposed in the Bank.
The Board wishes to place on record its appreciation for the valuable contribution made by the members of the Bank''''s staff at all levels and look forward to their continued involvement in achieving the future goals.
For and on behalf of Board of Directors Sunil Mehta
Managing Director& CEO