VIJAYA BANK Directors Report

The Board of Directors have pleasure in presenting the 36th Annual
Report of the Bank along with the audited Balance Sheet and Profit and
Loss Account for the year ended March 31, 2016.


Capital, reserve & networth

The Authorized Capital of the Bank at present is Rs. 3000 crore divided
into 300 crore shares of Rs. 10 each. At present, Government of India
holds 68.23% Equity Share Capital of the Bank. The total paid up
(equity share) capital of the bank is Rs. 932.56 crore. In March 2016
the Bank has allotted 73,441,008 equity shares of Rs. 10 each to LIC at
a premium of Rs. 20.75 per share on preferential basis with total
inflow of Rs. 226 crore. Further Govt. of India has infused capital of
Rs. 220 crore in March 2016. Pending allotment of equity shares as on
31st March, 2016, the amount is accounted as share application money.
For the year ended 31.03.2016, The total Reserves and Surplus is Rs.
6472.16 crore. The Net Worth of the bank increased from Rs. 5923.24
crore to Rs. 6550.50 crore this year.

Working results

Net profit for the year 2015-16 was Rs. 382 crore as compared to Rs.
439 crore for 2014-15. The Operating Profit of the Bank has increased
from Rs. 1259 crore as on 31.03.2015 to Rs. 1549 crore as on
31.03.2016, there by recording a growth rate of 23.03%. The Gross
Advances of the Bank increased from Rs. 87692 crore as on 31.03.2015 to
Rs. 90,765 crore as on 31.03.2016. The Retail Advance of the Bank grew
by 25.93% from the level of Rs. 18735 crore as on 31.03.2015 to Rs.
23,593 crore as on 31.03.2016. Yield on advances for 2015-16 is 10.52%
compared to 11.34% of last year. The Total

Business of the Bank grew from Rs. 2,14,035 crore as on 31.03.2015 to
Rs. 2,16,206 crore as on 31.03.2016. The Retail Term Deposit of the
Bank grew by 12.26% from the level of Rs. 39433 crore as on 31.03.2015
to Rs. 44269 crore as on 31.03.2016. The average cost of deposits
decreased from 8.10% in 2014-15 to 7.34 % in 2015-16. The The Net
Interest Margin of the Bank improved from 1.93% as on 31.03.2015 to
2.27% as on 31.03.2016.

The trend in financial results of the Bank is as under.

(Rs. in crore)

Sl. Item 2014-15 2015-16 Annual
No. Increase

1 Interest Income 12273 12084 -1.54%

2 Interest Expenditure 9981 9323 -6.59%

3 Net Interest Income (1-2) 2292 2761 20.46%

4 Non-interest income 879 874 -0.57%

i. Profit on sale of 299 182 -39.13%

ii. Other non-interest 580 692 19.31%

5 Net Total Income (3 4) 3171 3635 14.63%

6 Operating expense 1912 2086 9.10%

i. Staff Expenses 1166 1247 6.95%

ii. Other operating 746 839 12.47%

7 Operating profit 1259 1549 23.03%

8 Operating profit (excl. 960 1367 42.40%
Treasury profit)

9 Provisions and 820 1167 42.32%

10 Net Profit 439 382 -12.98%

Important Profitability Ratios

Sl. Item 2014-15 2015-16
No. (%) (%)

1 Yield on funds 9.15 8.77

2 Cost of funds 7.44 6.77

3 Interest spread (1-2) 1.71 2.00

4 Yield on advances 11.34 10.52

5 Cost of deposits 8.10 7.34

6 Yield on investments (excluding RIDF)

- excluding Trading Profit 7.69 7.60

- including Trading Profit 8.42 8.07

7 Other operating expenses to Average 0.56 0.61
Working Funds

8 Cost-Income Ratio 60.3 57.39

9 Establishment cost to average 0.87 0.91
working funds

Deposit Mobilization

During the financial year 2015-16, CASA deposits of the Bank recorded a
growth of 13.23%, grew from Rs. 25721 crore as at 31.03.2015 to Rs.
29,125 crore as at 31.03.2016. Saving Bank deposits grew to Rs. 22,456
crore there by recording a growth of 18% and Current Account deposits
stood at Rs.6669 crore. The percentage of CASA Deposits to Total
Deposits also improved to 23.22% from 20.35% during the financial year
2015-16. The Total Deposits of the Bank stood at Rs. 125441 crore. The
Retail Term Deposit of the Bank increased by 12.26% from the level of
Rs. 39433 crore as on 31.03.2015 to Rs. 44269 crore as on 31.03.2016.

Employees & Branch Productivity

Business per employee as of March 2016 was Rs.14.57 crore. Profit per
employee stood at Rs. 0.03 crore as at March 2016. Business per branch
stood at 116.05 crore.

Branch network

During the financial year 2015-16, the Bank has opened 246 branches
across the country and merged one Corporate Banking Branch with that
the total network of branches reached the level of 1863. There are 49
Extension Counters and 2 Satellite Offices at the end of the year
2015-16. The Bank has opened 4 new Regional Offices at Kalaburagi,
Visakhapatnam, Surat & Mandya during the year 2015-16 with that total
number of Regional Offices reached to 31.

Retail Credit

Retail lending continues to be the thrust area for credit expansion
during the financial year 2015-16, in view of its inherent advantages
such as risk spread, better yield and large volume credit build-up.

The outstanding balance under retail credit reached a level of Rs.
23,593 crore as at the end of March 2016 recording a growth rate of
25.93%. The retail credit portfolio accounted for 26% of the Bank''''s
gross credit thereby surpassing the KPI target of 24.36%.

Both the housing loan and vehicle loan portfolio recorded robust growth
rate of 34% with outstanding level of Rs. 8758 crore and Rs. 2090 crore
respectively as at 31st March 2016.

Fresh sanctions during the year under housing loan amounted to Rs.
3605 crore comprising of 21,082 borrowers and 36,422 borrowers have
been extended with vehicle loans amounting to Rs. 1178 crore.

Special Campaigns like "Festival Bonanza for Housing & Vehicle Loans"
and "Vijaya Retail Premier League " were launched to boost lending to
these sectors.

The features of major retail products have been revamped in line with
the prevailing market conditions and also few new retail products were
launched during the year, based on customers'''' needs.

Performance under Micro, small and Medium enterprises (MsMe) sector

Bank is giving thrust to the growth of MSME sector by launching
innovative schemes in alignment with Govt. of India initiatives like
''''Make-In-India'''', ''''Start-Up- India'''', Pradhan Mantri Mudra Yojana, Stand
Up India etc. To give focused attention to this sector, financial year
2015-16 was observed by the Bank as a ''''year of MsMe''''. The Bank launched
two new MSME products V-Swadesh'''' and ''''V-Mudra Card'''' Scheme to meet
specific credit needs of entrepreneurs. In order to give further boost
to the transport sector, MoUs were signed with major Auto
Manufacturers, M/s. TATA Motors and M/s. Ashok Leyland to finance their
commercial passenger/Transport vehicles.

MSME advances recorded a growth of 22% with outstanding level reaching
Rs. 18,569 crore as at March 2016. Outstanding advances Under Micro and
Small Enterprise (MSE) sector, reached a level of Rs. 14,841 crore,
recording 10% growth.

Out of three targets stipulated under Prime Minister''''s Task Force, Bank
has achieved two targets as under:

Sl. Stipulated target for 2015-16 Achievement
No. as on

1 60% of total lendings to MSE 61%
sector as on proceeding March 31st to
Micro Enterprises.

2 10% Y-O-Y growth in number 14%
of accounts under Micro Enterprise.

3 20% Y-O-Y growth in credit to 11%
MSE sector.

The Bank has successfully implemented the Prime Minister Mudra Yojana
(PMMY) scheme with a disbursement of Rs. 1892 crore covering 1.63 lac

For hassle free credit delivery to Micro entrepreneurs, Bank has
launched ''''V-Mudra Card'''' scheme to meet their working capital needs and
issued 39545 Mudra cards amounting to Rs. 173 crore.

In recognition of the Bank''''s contribution to MSME sector, Bank was
awarded following MSME Banking Excellence awards instituted by Chamber
of Indian Micro, Small and Medium Enterprises ( CIMSME), New-Delhi:

1. Best Bank under ''''MUDRA'''' Yojana for emerging Bank-Winner.

2. Best Bank for Promotional schemes under emerging Bank-runner up.


During the year, the Gross Credit of the Bank registered a growth of
3.50% from Rs. 87,692 crore on 31.03.2015 to Rs. 90,765 crore on
31.03.2016, despite conversion of aggregate debt of Rs. 3433 crore
pertaining to DISCOMs into bonds under ''''Ujwal Discom Assurance Yojana''''
of the Central Government at the end of Financial Year 2015-2016. In
case, the DISCOM debt has not been converted into Bonds, the growth
would have been around at 7.65%. Considering the economic down trend,
the Bank had been very selective in the approval of big ticket credit
proposals. The Bank has put in place a prudent due diligence mechanism
for screening of credit proposals and implementing the guidelines
received from Department of Financial Services and Reserve Bank of
India. In terms of extant guidelines from Ministry of Finance, Bank is
following committee approach for disposing credit approvals at Regional
Office and Head Office levels. The committees met as frequently as
possible to reduce turnaround time for credit decision.

Bank has continued with its strategy to recruit professionals from
CA/ICWA/CS/MBA streams during 2015-16 also for ensuring good standard
in credit processing.

Bank''''s Credit Department is accredited with ISO/ IEC 27001:2013
certification for information security management system by British
Standard Institute (BSI).

In tune with market trends, Bank has come up with various new loan
products and also fine tuned existing ones to suit the needs of

Large & Mid Corporate segment

The Large Corporate segment constituted 57% share in total domestic
advances as on 31.03.2016. The Bank has formulated 14 new Corporate
Banking Branches (CBBs) during the year at different geographical
locations keeping in mind the need for focused attention and to reduce
the turnaround time in the delivery of Corporate Credit. In addition,
the Bank has MSME branches spread across the country catering to the
needs of mid-corporate and SME clients by offering services including
cash management, forex, treasury products, trade finance, deposits,
retail banking etc.

Bank''''s Corporate/SME Banking Division offers an array of loan products
and services such as Term Loans, Demand Loans, Corporate Loan,
Short-Term Loans, Working Capital Facilities (FB NFB), Trade Finance
Products, Bridge Loans, Syndicated Loans, Infrastructure Loans, Foreign
Currency Loans, Loan Against Future Rent Receivables and many more to
its corporate clients depending upon their needs. Over the years, Bank
has made significant progress in establishing healthy business
relations with several multinationals, domestic business houses and
prime public sector companies.

Infrastructure finance

Bank''''s exposure to infrastructure sector is 22.45 % of gross advances
and is well within the prescribed sectoral exposure cap of 40%.

Training in Credit Matters

With the retirement and elevation of credit officers, the requirement
for well trained credit officers has been felt by the Bank. In the
above direction, in order to build a pool of credit officers in the
Bank, during 2015-16, three months intensive training has been imparted
to sixty six identified officers selected from different branches and
controlling offices spread across the country.

Cancellation of undrawn exposure

As part of the efforts to enhance conservation of capital under the
Basel-III Capital Adequacy Framework, the Bank is focussing on
cancellation of large value undrawn exposures. Such an approach
resulted in a two-pronged effect, i.e., reduced capital allocation and
availability of resources for investment in profitable ventures.


Investment and fund Management

Total investment portfolio of the Bank increased from Rs. 40,934.36
crore (SLR investments: Rs. 34,933.00 crore and Non SLR investments:
Rs. 6,001.36 crore excluding RIDF investments ofRs. 3,763.98 crore) as
on March, 2015 to Rs. 42,178.12 crore (SLR investments: Rs. 35,166.04
crore and Non SLR investments: Rs. 7,012.08 crore) excluding RIDF
investments ofRs. 3,605.18 crore as on March 31, 2016.

The 10 year benchmark yield closed at 7.46% as March 31, 2016 against
7.74% as on March 31, 2015.

The average yield on investments (including profit on sale of
investments and excluding RIDF interest income) during the year worked
out to 8.07% in FY 2015-16 as against 8.42% in FY 2014-15.

Bank also complied with CRR and SLR requirements as stipulated by RBI
consistently during the year.

International Banking

Bank''''s export credit as at 31.03.2016 registered a Y-o-Y growth of
0.33% and stood at Rs. 1576.60 crore. It is in spite of global slowdown
and negative export growth of the country as a whole. Out of the above,
quantum of export credit extended by the Bank in foreign currency was
USD 32.61 million. As at March 31, 2016, foreign exchange business
turnover of the Bank stood at Rs. 22,258.37 crore, recording a growth
of 5.13 % over the previous financial year.

Bank has successfully implemented IBS-BR, e-BRC, EDPMS, and e-BIZ
projects of RBI besides fully operationalizing CFPC by integrating
process flow from branches through DMS software.

Bank''''s total NRI deposits as at 31.03.2016 stood at Rs. 3658.32 crore
as against Rs. 2998.96 crore as at the end of previous financial year,
thereby recording a growth of 22 %. During the financial year 2015- 16,
the Bank has continued to extend ''''Speed/Flash Remittance'''' facility to
UAE Exchange Centre LLC, Al Ansari Exchange UAE, Wall Street Exchange,
UAE and

Al Bader Exchange, UAE to enable the NRIs from Gulf Countries to
electronically remit funds to their account with our branches anywhere
in India. In addition to the above, the Bank also has Rupee Drawing
Arrangement (RDA) with Oman United Company LLC, Oman to facilitate
rupee remittances to the accounts in India. NRI Customer Cell set up
at Head Office, Bangalore is exclusively catering to the requirements
of our NRI customers. The Bank''''s fortnightly e-Newsletter Vijaya NRI
Digest, has evoked good response among the NRIs particularly in the
Middle East /Gulf countries.

Export & import Credit

The Bank is active in meeting the financial requirements of importer
and exporter clients, both in domestic and in foreign currency. Bank''''s
47 branches across the country are designated to handle foreign
exchange business.

Asset Quality

The Bank continued its focus on maintaining quality of assets along
with thrust on preventing fresh slippages. It initiated and continued
to emphasize various measures in this direction, including the

- Accounts showing signs of stress / likely default in dues are
identified and treated as Special Mention accounts and are closely
monitored. Wherever feasible, such assets are restructured on merits,
with additional need-based credit limits considered in deserving cases.
Viability studies were conducted in respect of SME accounts slipped to
NPA and brought under nursing wherever feasible within the time frame.

- Special Recovery Cells are formed at Regional Offices for systematic
follow up of NPA accounts. Centres wherever DRT''''s are functioning,
Nodal Officers are designated, who keeps regular liaison with the
presiding officer and the Bank''''s advocate for speedy disposal of the

- In case of willful defaulters, stringent recovery measures, including
legal actions like Securitization and submitting the names to RBI were

- Services of Lok Adalats are resorted to for speedy recoveries of
impaired assets.

- All NPA Accounts of Rs. 10 Lakhs and above are reviewed by the Top
management through video conference with the Regional Heads and guiding
them for the speedy recovery.

- To facilitate speedy recovery, ''''Vijaya Adalats'''' under the Recovery
Policy of the Bank are regularly conducted at various centres by
involving a cluster of branches and accounts are settled on the spot.

- A special One Time Settlement Scheme for chronic tractor loan NPAs
was reintroduced with certain modifications from 05.09.2015 to

- To speed up the recovery in small value NPAs, 22 recovery officers
(18 in Karnataka, 2 Telengana and 2 in Andhra Pradesh) have been posted
at identified centers with large number of NPA accounts in 10 regions.

- Special Liberalised OTS Scheme for agricultural loans with sanctioned
limits upto Rs. 5 Lakhs has been introduced and fresh Agricultural
Loans are considered on merits.

- Bank has formed a exclusive wing named NPA War Room with 10 officials
and the NPA accounts are being followed vigorously with branches for

- Bank has added 10 persons at the call centre for exclusive follow up
of NPA accounts with Borrowers for recovery of NPA accounts.

The gross Non-Performing Assets of the Bank as on March 2016 stood at
6.64% of total advances, while Net NPA ratio was 4.81% of net advances.
During the year 2015-16, Bank could effect total cash recovery of Rs.
569.55 crore (including interest) and upgraded NPAs amounting to Rs.
1454.18 crore. Further, the Bank also made provision of Rs. 1658.64
crore for the unexpected defaults, apart from providing a floating
provision of Rs. 71.35 crore as on March 31, 2016. The Provision
Coverage Ratio (including PWO) as at March 2016 worked out to 50.08%.


Credit risk

Bank has put in place a Comprehensive lending Policy as well as Credit
Risk Management Policy which encompass various aspects such as risk
appetite, risk based pricing, risk diversification / mitigation
strategy, prudential limit, substantial exposure ceiling, group
exposure ceiling, Rating wise exposure ceiling, preferred sector growth
strategies, credit approval process, documentation and security
standards, security valuation etc these policies are revised
periodically based on corporate goal and business plans of the Bank.

The stress tests for Credit Risk are carried out on half yearly basis
which covers scenarios such as credit portfolio to stress like increase
in NPAs, slippage of restructured standard accounts, downgrade in
Counter-party rating, depletion in collateral, etc.

Further, Bank has put in place a comprehensive risk rating/ scoring
system which serves as a single point indicator of diverse risk factors
on the counterparty and to facilitate execution of proper and
consistent credit decisions. Bank has evolved separate risk scoring
models for Housing /other Retail lending sectors and endeavors higher
coverage in risk rating exercise. Rating migration analysis in respect
of credit exposures of Rs. 1.00 crore and above is conducted on half
yearly basis. Bank is conducting risk rating of all retail and non
retail loans by using CRISIL RAM software which is Basel II compliant.
The software facilitates Bank to maintain the credit quality and also
to support efforts of the Bank in translation towards advanced approach
of Basel II by ensuring that prior to sanction of loans, all type of
exposures is covered under risk rating process. Bank has taken the
required initiatives to move towards FIRB (Foundation Internal Rating
Based) approach in credit risk.

Asset liability Management (AlM) and Market risk

ALM and Market Risk of the Bank is managed by the Asset Liability
Management Committee (ALCO) and Market Risk Management Committee (MRMC)
respectively. Appropriate tolerance limits have been stipulated for
mismatches in different time buckets, both for managing liquidity and
interest rate risks. These are being monitored at fortnightly
intervals and also appraised to the Board of Directors.

The market risk exposure is measured by tools like VAR (Value at Risk),
AGL (Aggregate Gap Limit), and Duration gap analysis. Exposure limits
for all countries have been put in place to manage and monitor the
country risk. Mid-office closely monitors the treasury transactions on
regular basis to monitor compliance and advises for taking corrective

The Bank has applied to RBI, seeking their approval to implement
Internal Model Approach (Advanced Approach) for Market Risk.

The Duration Gap Analysis is implemented for assessing the possible
impact on market value of equity (net worth) using 200 basis points
shock on interest rate curve.

Interest Rate Risk on entire portfolio is identified and measured
through Earnings at Risk (EAR). Sensitivity analysis is also conducted
and reviewed by the top management. Contingency Funding Plans,
Prudential Ratios / Limits have been set and actual position is
monitored as part of Liquidity Risk Management. Stress Test on Interest
Rate Risk, Liquidity Risk, Forex risk, etc on different scenarios are
carried out on quarterly basis and appraised to Asset Liability
Committee (ALCO). To monitor short term liquidity, the Bank is
preparing the ALM statement of Structural Liquidity on daily basis.

The Funds Transfer Pricing, a new technology on transfer pricing
mechanism, has been implemented for assessment of branch profitability
in a scientific manner.

Bank is calculating Liquidity Coverage Ratio (LCR) and Leverage ratio
at prescribed intervals. Bank''''s Liquidity Coverage Ratio (LCR) stood at
121.45% as on 31.03.2016 against the minimum LCR of 70% as on
31.03.2016 and Bank''''s Leverage Ratio stood at 5.23% as on 31.03.2016
against the RBI''''s indicative ratio of 4.50%.

Operational risk

Bank has put in place a well defined Operational Risk Management
Framework to effectively identify, measure, manage and address
Operational risks. The Bank has also put in place a framework required
for implementation of The Standardized Approach (TSA). The governance
of Operational Risk Management is monitored by Operational Risk
Management Committee (ORMC), which reviews the operational risk loss
event data, new products, processes and systems adopted by the Bank and
provides suggestions for taking corrective/preventive measures to
strengthen the internal system and procedures. In order to mitigate
Operational risks, several thematic studies have been conducted for
frauds committed in loan and deposit portfolios, so as to identify
systemic deficiencies from Risk Management angle. Further, in order to
move towards advanced approaches, Bank has put in place frameworks for
Risk Control Self Assessment (RCSA) and Key Risk Indicators (KRIs).
Bank has been taking steps to strengthen the RCSA and KRI by reviewing
the same and improving the coverage area for management of Operational

The Bank is one of the founding members of M/s Cordex India Pvt Ltd, a
loss data consortium formed under the aegis of IBA with the sole aim to
enrich Bank''''s internal loss database.

The Bank has been permitted by RBI to assess Operational risk capital
under The Standardized Approach (TSA) ? (Parallel run w.e.f March

Basel-ii & Basel iii Compliance

As the Bank requires corporate clients'''' risk rating status awarded by
rating agencies approved by RBI, the Bank has entered into MOU with all
the six rating agencies viz CRISIL, ICRA, CARE, Brickwork, SMERA and
Fitch so that borrowers can avail the rating services at a competitive
fee and bank also derives benefits on lower capital charge depending on
the rating status. The Bank has formulated its ICAAP policy which is
revised from time to time and the ICAAP Document is submitted to RBI on
half yearly basis.

In compliance with the RBI guidelines and adopting Standardised
Approach for Credit Risk, Standardised Duration Gap for Market Risk and
Basic Indicator Approach for Operational Risk, Bank has complied with
Basel II norms and the overall Capital Adequacy Ratio as at 31st March
''''2016 under Basel II works out to 12.90%, which is above the minimum
stipulated norm of 9%. Bank has also complied with Basel III norms and
the overall Capital Adequacy Ratio as at 31st March ''''16 stood at 12.58%
(including CCB), which is above the minimum stipulated norm of 9.625%
including Capital Conservation Buffer (CCB).

Integrated risk Management system (irMs) Project

In order to facilitate smooth and effective compliance of Basel-II
norms, the Bank has taken up for implementation of Integrated Risk
Management System (IRMS).

The unique IRMS Project consists of six solutions, viz. Credit Risk
Management (CRM), Market Risk Management (MRM), Operational Risk
Management (ORM), Credit Risk Rating Solution (CRR) (Retail &
Non-Retail), Asset Liability Management (ALM) and Funds Transfer
Pricing (FTP) Solution.

Basel iii and Capital Adequacy

During the financial year 2015-16, under Common Equity Tier I Capital,
Bank has received infusion of funds from Govt. of India of Rs. 220
crore and has raised Rs. 226 crore from LIC of India (including
premium). The Bank has also raised Additional Tier- I Capital of Rs.
500 crore and Tier- II (Basel III Compliant) Bonds ofRs. 450 crore.
Further, in view of the recent amendment in RBI''''s Basel III Guidelines,
Bank has revalued its assets including office premises, land and staff
quarters through which the bank has reckoned Rs. 393 crore in Common
Equity Tier I Capital. The Capital Adequacy Ratio improved to 12.90%
(as on 31.03.2016) as compared to 11.70% (as on 31.03.2015) under Basel
II norms. The Capital position of the Bank under Basel III is tabulated
as under:

(Rs. in crore)

Particulars 31.03.2016 31.03.2015

Amount Ratio Amount Ratio

Common Equity Tier I 6973.50 8.31% 5919.73 7.60%

Additional Tier I Capital 955.84 1.14% 494.90 0.64%

Tier I Capital* 7929.34 9.45% 6414.43 8.24%

Tier II Capital 2621.07 3.13% 2480.53 3.19%

total Capital* 10550.41 12.58% 8895.16 11.43%

Risk Weighted Assets 83883.21 77837.56

* includes Capital Conservation Buffer (CCB) of 0.625%.


Priority sector lending

Total Priority Sector advances of the Bank stood at Rs. 38003 crore as
at the end of March 2016, registering a growth rate of 23.73 %.
Priority Sector Credit of the Bank constituted 41.54 % of the Adjusted
Net Bank Credit against the RBI norm of 40%.

Agricultural finance

Agricultural advances of the Bank as at March 2016 stood at Rs. 13771
crore, constituting 15.05% of the Adjusted Net Bank Credit. Agriculture
credit has shown y-o-y growth of 20.91 %.

During the financial year 2015-16, Bank launched a new scheme for
Financing Food and Agro Processing units with liberal terms and
conditions to increase the credit flow to Food and Agro processing

Bank launched Revised Debt Swap Scheme to liberate the farmers and the
micro entrepreneurs in rural and urban areas from the clutches of local
money lenders.

kisan Credit Card scheme

The outstanding level of advances under Vijaya Kisan Card (VKCs) stood
at Rs. 2454 crore through 149820 accounts as at 31.03.2016. The Bank''''s
Kisan Cards are ATM enabled under RuPay platform.

Advances to Weaker sections

As at March 2016, the outstanding weaker section advances of the Bank
stood at Rs. 12146 crore, which constitutes 13.28% of the ANBC against
the norm of 10%. The Weaker Section advances increased by Rs. 3461
crore, registering a growth rate of 39.85 % over March 2015.

Self help Groups (SHGS)/Joint liability Group (JLGS) /Micro finance
institutions (MFIS)

Bank has accorded top priority to lending to SHGs/ JLGs/MFIs. Bank has
disbursed Rs. 601 crore to SHGs/ JLGs/MFIS and the outstanding level of
advances to this segment stood at Rs. 1271 crore as at 31.03.2016.

Bank is actively participating in implementation of Deendayal Antyodaya
Yojana - National Rural Livelihood Mission (DAY-NRLM) in coordination
with various State Rural Livelihood Missions. Bank''''s advance under
DAY-NRLM stands at Rs. 582.82 crore benefitting 23022 Women SHGs.

During the year 2015-16, the Bank has received 3 Awards for
SHG/JLG-Bank Credit linkage in Karnataka from NABARD, Bangalore for the
year 2013-14.

Credit to Women Beneficiaries

Advances to Women beneficiaries stood at Rs. 7790 crore as at March
2016 as against Rs. 6438 Cr as at March 2015, registering a growth
rate of 21%. Against the stipulated target of 5% of Adjusted Net Bank
Credit (ANBC), the Bank''''s achievement stood at 8.51% of ANBC.

Lead Bank scheme

Bank is having Lead Bank responsibility in three districts i.e. in
Mandya, Dharwad and Haveri districts of Karnataka State. All our Lead
District Managers have been effectively coordinating with all Bank
branches in their Districts to ensure achievement of targets under
Annual Credit Plan, Govt sponsored schemes, Financial Inclusion, Social
Security Schemes, Direct Benefit Transfer Scheme etc. In these three
Districts, total credit share of the Bank under Annual Credit Plan is
Rs. 834 crore against the target of Rs.841 crore as at March 2016.

Lending under Govt. sponsored schemes

Implementation of Govt. sponsored schemes receives the utmost attention
of the Bank. The credit flow under various Govt. sponsored schemes is
as under:

(Rs. in crore)

Sl. Schemes No of Loan amount
No. Beneficiaries outstanding as at
March 2016

1. PMEGP 2756 121.66

2. DAY-NRLM 23022 582.82

3. DAY-NULM 604 8.53

Advances to SC / STs

Total advances to SC / STs stood at Rs. 1747 crore as at March 2016,
against Rs. 1515 crore as at March 2015, registering a growth rate of
15.31 %.

Credit to Minority Communities

Advances to Minority Communities stood at Rs. 5197 crore as at March
2016, constituting 15.11 % of total Priority Sector advances as against
the Government norm of 15 %.

ViBsetis (Vijaya Bank self-employment training institutes)

The Bank has established Vijaya Bank Self Employment Training
Institutes [VIBSETIs] at Mandya and Haveri in Karnataka state and at
Indore in Madhya Pradesh. The Institutes have been conducting various
vocational training / skill upgradation / awareness programmes /
Entrepreneur Development Programmes etc. All the three VIBSETIs have
been graded ''''AA'''', highest grading, for the year 2014-15 by Ministry of
Rural Development (MoRD), GoI.

During the financial year 2015-16, VIBSETIs have conducted 98
programmes and trained 2734 beneficiaries. Since inception, totally
1462 programmes have been conducted benefitting 50138 beneficiaries.
Settlement of trained candidates with gainful self- employment ventures
is 71.61 % as at 31.03.2016.

Vijaya rural Development foundation (VrDf)

With a view to focus the attention of rural masses on the need to
modernize agricultural practices, for upgradation of skills and
knowledge in various self- employment ventures and for achieving
all-round socio- economic development, Vijaya Rural Development
Foundation (VRDF) was promoted by the Bank in the year 1990 at
Mangalore. VRDF has been conducting various awareness programmes
covering a wide range of subjects through the Village Development
Councils (VDC). At present, 33 such VDCs are functioning under VRDF.
The Foundation has expanded its activities to other districts like
Haveri, Dharwad and Mandya, where the Bank has Lead Bank

During the financial year 2015-16, VRDF has conducted 202 programmes
benefiting 16520 persons. Apart from Free Health camps, Scholarship to
meritorious students, Training on cultivation aspects of various crops
and animal husbandry activities etc., the following novel programmes
were conducted during 2015-16

- Programmes on Soil testing and recommending the nutrients for the
particular soil/crop which is in tune with Prime Minister Soil Health
Card Scheme.

- Arranged Radio classes to 10th Class rural school students in
Mathematics and English through Akashavani Mangalore, wherein sessions
were taken by expert teachers in the field. VRDF has provided 100 radio
sets to rural Government schools.

- Formed 25 "future farmers Clubs" to encourage the students to take
interest in agriculture and allied activities. Training on Dairying,
Honey bee rearing, Mushroom Cultivation, Farm Mechanization etc., were
imparted for these students.

Visit of Parliamentary Committees

- Visit of Distinguished Members of Committee on Subordinated
Legislation, Rajya Sabha on 19.06.2015.

- Visit of Distinguished Members of the House Committee, Lok Sabha on

- Visit of Parliamentary Committee on the Welfare of Scheduled Castes
and Scheduled Tribes on 20.10.2015.

Education loan

Utmost importance is given to extend education loans to deserving
meritorious students. During the year, fresh education loans were
sanctioned to 10170 students amounting to Rs. 450 crore.

The education loan portfolio grew by Rs. 216 crore to reach a level of
Rs.1119 crore as on 31.03.2016 recording growth rate of 24%. Bank has
also surpassed the KPI target of 20% for disbursement of education
loans by achieving a level of 26%.

Bank has integrated its system with Vidya Lakshmi portal so as to
facilitate the students for on line submission of application for
education loan, tracking the status of applications,
processing/sanction of proposals by branches and updating the status

The Bank has been conferred with ''''Out Look Money award'''' under
''''Education Loan Provider of the Year category''''.


Pradhan Mantri Jan Dhan yojana (PMJDy) was launched by the Hon''''ble
Prime Minister on 28.08.2014 with the objective of bringing all
unbanked households/ families of the country into banking fold by
providing them with Basic Bank Accounts, Rupay cards with accidental
insurance coverage of Rs. 1.00 lakh, life insurance coverage of Rs.
30,000/- and overdraft facility upto Rs. 5000/- based on the
satisfactory transactions in the account. Bank has been allotted with
1151 Sub Service Areas comprising of 3410 villages and 432 wards on a
Pan India basis to provide banking facilities. Bank has provided
Banking Facilities to these villages through 289 branches and the
remaining through Bank Mitras (Business Correspondent Agents). Bank has
conducted household survey in all allotted SSAs and Wards and covered
all the households with at least one bank account.

As on 31st March 2016, Bank has opened 15.45 Lakh Basic Savings Bank
Deposit accounts under PMJDY with a total savings of Rs. 158.35 crore
and all the account holders are provided with Rupay debit cards.
Aadhaar numbers have been seeded in 8.42 lakh accounts. Bank has
sanctioned Overdraft facility to 37304 PMJDY account holders amounting
to Rs. 101.35 Lakhs.


- E-KYC has been enabled in all the branches and also in Hand Held
Machines/Micro ATMs.

- Automation of Overdraft facility has been enabled in all the ATMs of
the Bank.

- RuPay card Off Us transactions has been implemented at all the BCA

- All Micro ATMs are enabled for RuPay Card transactions.

- The percentage of Zero Balance Accounts has come down to 2.53% as on
31.03.2016 from a level of 54% as on 31.03.2015.

- Average Transaction per Day per Bank Mitra has increased to 22 as
compared to 6 as on 31.03.2015.

- 93% of our BCAs are getting remuneration of Rs. 5000/- and above as
compared to 35% as on 31.03.2015.

- Cash receipt to SB accounts from third parties without biometric
authentication by the account holders has been enabled in all the

Financial literacy

Bank authored "Vijaya Financial Literacy Trust" (VFLT) on 20-11-2015
with the objective of imparting literacy to all the Urban & Rural
masses regarding financial matters. The first FLC under the new trust
was opened at Gauribidanur on 26.03.2016. Presently, Bank is having a
total of 15 FLCs, 13 centres in Karnataka State and 2 centres in

To create awareness on ''''Pradhan Mantri Jan Dhan Yojana'''' in Rural and
Urban areas, Bank has prepared an Audio Film in regional languages for
screening at account opening camps and other literacy programmes.
Financial literacy materials in regional languages are also provided to
branches to impart financial literacy to PMJDY account holders and
other rural and urban masses.

Imparting of financial literacy in schools has been introduced under
School Bank Champ Project of IBA, wherein 431 schools have been mapped
with branches in rural areas. Under the Pilot project of DFS, financial
literacy is imparted to students in 51 schools of three states-ie
Maharashtra, Madhya Pradesh and Gujarat. Bank is actively
participating in promoting social security schemes such as Pradhan
Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY) and Atal Pension Yojana (APY). FLCs are also
participating in Finanacial literacy camps at ITI s and Skill centers.

Direct Benefit transfer

Bank is actively implementing the modified DBTL programme of the Govt.
of India, by seeding Aadhaar number of LPG consumers into their
accounts. SMS alerts are also sent to all the customers regularly for
seeding Aadhaar numbers into their accounts through various modes.

Electronic Benefit transfer

Bank is disbursing Social Security Pensions / MNREGA amounting to more
than Rs. 8.00 crore per month to more than two lakh beneficiaries in
Mandya District through Bank Mitrs under "one district one Bank Model"


The Bank always in forefront to offer its products and services to the
customers based on latest technology. This helps the Bank to increase
the customer experience and satisfaction. During the financial year
2015-16, the Bank has introduced / upgraded its product and services as
per the latest available technology. The Bank''''s instinct to adopt
technology and to offer latest products and facilities to customers
helps the Bank to stay competitive in the industry. The following are
the some of the IT based main initiatives taken by the bank during the

Missed Call services (freeBuzz)

Bank is providing missed call services to the customers & enable them
to know the account balance and mini statement. The ease of giving
missed calls with zero charges provides a huge advantage to the

V-fee hive

Bank''''s in-house software development team has developed a unique
application for collection of fees for Educational Institutions,
collection of monthly maintenance fee by Apartments and collection of
fees by Clubs, etc. It is equipped with unique features like
integration of other payment channels like debit card, credit card and
internet banking. Prestigious institutions like IIM-Calicut, Army
Public School- Delhi, Yenepoya College- Mangalore and Mount Carmel
College - Bangalore etc. are availing this service. The application
was implemented for various new institutions in the year including Dr.
A. P. J. Abdul Kalam Technical University Uttar Pradesh, MSRIT
Bangalore, Motilal Nehru National Institute of Technology and Vasavi
Pearl Apartment.


Bank''''s in-house software development team has developed mobile
application for accessing account details / to get transaction details.
The application is loaded with additional customer friendly features
like facility to add notes to each transaction, facility to maintain
various personal account heads and to add pass book transactions to
these accounts on a single click, facility to add notes to each
transaction, etc. A Page with latest offerings and information like
interest rate of the Bank with links to reach the website of the Bank
and facility to refer us to a friend is also available in this
application. New version of the software V-ePassbook 2.00 with
attractive features like reset of password online, maintain financial
calendar, locate our branch/ATMs, display details in Hindi/ Kannada
languages etc. released during the current year. Already 2,73,488
customers have registered for availing this facility.

Internet Banking

The Bank has upgraded its internet banking, V-Net Banking and it is now
responsive i.e. it can be seamlessly used on laptop, mobile or any
hand-held device.

V-Net Banking is providing services like balance enquiry, account
statement, intra-bank and inter- bank fund transfers through RTGS/NEFT,
transactions related SMS alerts, payment of Indirect / Direct taxes,
State commercial Taxes, utility bill payments, online temple donations
& online donations to Prime Ministers Relief Fund (PMRF) and others.
The add-on features of V-net banking are:

- Online FD/RD account opening

- Password can be reset online

- Creation of User-id and Password credentials online.

- Customers can view their PPF account and transfer funds to PPF
Account from their linked operative accounts using V-Net Banking

- Customer can View their Vijaya Bank Credit Card statement.

- Customer can pay Import & Export custom duties.

Mobile Banking

V-Mobile Banking, the channel of the Bank for performing banking
activities like balance enquiry, account statement, mobile recharge,
intra and interbank funds transfer using NEFT, Mobile Recharge, DTH
recharge etc., with their mobile handset using SMS/ GPRS modes of
communication. "Immediate Payment Service" ? IMPS (P2P-Person to
Person), an initiative from NPCI (National Payment Corporation of
India) has been implemented for the benefit of the customers using
Mobile Banking services to perform the transactions 24x7 within and
across the banks using MMID (Mobile Money Identifier). IMPS (P2A ?
Person to Account) is implemented in Bank''''s existing Mobile Banking
services, wherein the customers can do funds transfer using
beneficiary''''s A/c No. and IFSC code, without the use of MMID.

The Bank has launched new version of Mobile Banking with enhanced look
and feel, and additional features like facility for customers to
receive notifications from the Bank, add remarks to fund transfer
transactions, to generate application password by themselves, and a
host of other customer friendly options. The mobile banking is made
available in bilingual (Hindi & Englsih).

Bank''''s Mobile Banking has been enabled for IMPS payment using MMID,
where customer can initiate the transaction based on beneficiary MMID
and Mobile Number. The Bank has also enabled both the options of IMPS
merchant payment i.e PUSH and PULL. Bank''''s Mobile Banking offers the
facility to do online merchant payment on any biller site under IMPS
options using their MMID, Mobile Number and OTP.


Mobile Banking services were introduced by the Bank in the year 2009.
However availing even some of the basic banking services provided
through Mobile Banking was beyond the reach of the people who did not
possess a high end handset. Now NPCI''''s Unstructured Supplementary
Services Data -USSD (NUUP) offered by Telcos has been exploited by the
Bank to give Mobile Banking services even on a basic mobile phone,
making Mobile Banking accessible to all customers. Generation of OTP
has also enabled for IMPS Merchant payment. Bank also added the direct
number in order to avoid the multiple screen, i.e

For Balance Inquiry -*99*64*!#

For Mini Statement - *99*64*2#

For Fund transfer Using MMID - *99*64*3#

Fund Transfer Using IFSC Code - *99*64*4# and many others

The Bank has ranked as No.1 in terms of number of transaction hits
during the month of December 2015 as per the data provided by National
Payment Corporation of India. Bank was also at No.1 position among all
banks in terms of total transaction hits received on *99# service for
the month of December 2015.

SMS Alerts/e-mail

- The Bank also offers SMS alert service. Messages are sent for all
transactions of Rs. 1 and above and when cheques are returned with,
irrespective of the amount. Monthly statement of account through e-mail
to account holders who have registered the e-mail ID has been
implemented. Mail alerts are also now being sent to the registered
email ID of the customer (keeping branch and RO in CC) for opening as
well as closing of bulk deposits.

SMS alert facility is also used for

- Adding beneficiaries in V-Net Banking through SMS - OTP(One Time

- Online Resetting of Password in V-Net Banking SMS - OTP (One Time

- Self User Creations for Retail Customers using SMS - OTP (One Time
Password) along with other security features.


V-Gyansagar is an unique initiative by Vijaya Bank to impart financial
information to the public as part of financial literacy. V-Gyansagar is
an Android mobile application which provides the subscriber a facility
for getting daily updates on Financial, Economic and Banking news and
also explanation of Financial and Banking terms.


A facility to open account by giving a missed call and opening of
account through Tab Banking was implemented. This will be useful for
the customers who cannot come to branch and open an account.


V-QuickPay is a unique initiative of the Bank and is the next
generation bill payment service where the Bill payment is made by
scanning of QR code. Customers have to scan the QR code on the Bill
generated by the merchant who has availed this facility from the Bank
and proceed with the payment of the bill without having to swipe the
Credit/Debit card on the POS machines. It facilitates Payment by way
of Credit and Debit Cards and also net banking of any Bank. This
product introduces a new bill payment channel, hitherto not provided by
any Bank in the Indian Banking Industry.


To address all the challenges faced in the existing small payment
collection system and to provide a solution which would enable all the
ecosystem participants to perform their respective tasks with ease,
securely and accurately, the Bank, has created an innovative solution
named V-eWallet. Our solution provides performing of transactions, of
small denominations, digitally using the UNIQUE pull technology - the
first in India.

V-online sB Account

An option to open online SB account was introduced through our website
''''WWW.VIJAYABANK.COM'''' Customer has to choose account opening at his/her
place of choice and at his convenience. Branch receives an automated
mail with regard to the customer''''s request; branch will call the
customer and informs the required documents and procedures. Customer
will visit the branch on his / her chosen date and submits the
necessary documents and opens the account.


268 ATMs were operationalized during the year 2015- 16, taking the
number of ATMs to 1651 as at the end of March 2016. Bank''''s customers
can also access over 2, 20,912 ATMs connected under National financial
Switch (NFS) across the country.

Internal Control

The Bank has well documented policies like IT & IS Security, Internet
Banking Policy, IT Procurement Policy, Internet usage Policy, e-mail
policy, Business Continuity Policy, Disaster Recovery Policy,
Outsourcing Policy etc. covering wide range of functions at the field
and administrative levels. Adequate controls are also built in to
mitigate the risks associated with each of the activities. IT policy
and IS policy was revised during 2015-16. Separate policies have been
brought out for Incident management, Vulnerability and penetration test
as part of IS Security policy.

Security operation Center

The Bank established Security Operation Center with Security
Information and Event Management Solution (SIEM) & Correlation tool, to
help the Bank in blocking / mitigating the attacks procedurally. Bank
has finalized the Common procurement process for 9 Public Sector Banks
for implementation of SOC as per the new initiative of GOI under common
RFP and the project has been successfully completed. As a part of this
project, Bank has procured the below solutions to strengthen the
Security Infrastructure, which are under implementation.

1. Web Application Firewall

2. Database Activity Monitoring Solution

3. Network Behavior Analysis Solution

4. Privileged Identity Management Solution

5. Anti- Advanced Persistent Threat Solution

6. Data Leakage Prevention Solution

7. IT Governance, Risk & Compliance

RTGS & NEFT services

Having brought all branches under Core Banking Solution, RTGS and NEFT
services are available to the Bank''''s customers from all its branches.
Since STP has been enabled in RTGS and NEFT, the customers can enjoy
the benefit of immediate inter-bank and intra bank fund transfer
facility. The centralized payment systems, viz. Real Time Gross
Settlement System (RTGS) and National Electronic Funds transfer (NEFT),
currently provide for only direct membership. It has been decided by
the RBI to expand the sub-membership route to enable all licensed banks
to participate in NEFT and RTGS systems. The sub-member/s would
participate in the centralized payment systems through their sponsor
bank which is a direct member of the centralised payment system. Bank
has entered into an agreement with Shimsha Sahakara Bank Niyamitha,
Maddur and Lokapavani Mahila Sahakari Bank, Mandya for using our
RTGS/NEFT services as sub-members.


IMPS is an emphatic tool to transfer money instantly within banks
across India through mobile, internet etc which is not only safe but
also economical both in financial and non-financial perspectives. This
service is available 24x7, throughout the year including Sundays and
any bank holiday. IMPS system allows customers to carry out
transactions through mobile and internet banking, the same is being
offered through V-Mobile and V-Net Banking to all customers.

Control unit reports Portal

Bank developed 82 various reports for the Offsite Surveillance Cell of
Internal Audit & Supervision Department where the Cell can generate the
required reports depending on the periodicity specified to identify the
frauds at early stage and income leakage.

NACH (National Automated Clearing house)

National Payments Corporation of India (NPCI) has implemented "National
Automated Clearing House (NACH)" for Banks, Financial Institutions,
Corporates and Government a web based solution to facilitate interbank,
high volume, electronic transactions which are repetitive and periodic
in nature. The Bank has implemented Automated Process for generation of
Aadhaar-Mapper and OMC DBTL (Option-2) files for NACH Project.

Disaster recovery

The Bank has implemented Integrated Human Resources Management System,
Integrated Treasury Management System and Integrated Risk Management
System and are integrated with the Core Banking System. ITMS project
has met all the objectives with the setting up a DR setup at Mumbai.
HRMS has also met most of the objectives with the setting up a DR set
up at Mumbai.

Credit Card Business

At the end of the financial year 2015-16, the total cards issued by the
Bank stood at 170021. The Credit Card turnover is Rs. 585.64 crore as
against the turnover of Rs. 514.57 crore as on 31.03.2015. The Bank is
issuing chip based Credit Cards for additional security. Most of the
magstripe cards have been converted to chip cards. Bank has also
facilitated cardholders to view their card transactions at any time
through V-Net Banking.

The total number of merchants enrolled by the Bank during the financial
year 2015-2016 stood at 1370 as against 917 merchants as on 31.03.2015.
The Bank is also providing cordless card swiping machines and the
terminals are EMV/UKPT/TLE compliant and PIN @ POS enabled. The Bank
makes direct payments to merchants maintaining account at our Core
Banking branches.

Debit Card

There has been considerable increase in the issue of Debit Cards
excluding the debit cards issued to PMJDY accounts. Due to
implementation of PMJDY programme in the Financial Year 2014-15, there
was a considerable number of accounts opened under this scheme and
debit cards were issued to these accounts in the Financial Year
2014-15. However the number of such accounts were much less in the year
2015-16. Debit Card Turnover as on March 31, 2016 is 787.68 crore. The
details of card issued in the financial year 2014-15 and 2015-16 are as
furnished below.

Card Issue FY 2014-15 FY 2015-16

Total Card Issued 1696852 1076029

Cards issued to PMJDY 939209 60144

Total number of cards 757643 1015885
excluding those issued
to PMJDY accounts

Internal inspection & Control system

The Bank has a well-defined Internal Audit Policy covering Risk Based
Internal Audit (RBIA), Concurrent Audit, Information System Audit, AML/
KYC Compliance, etc. The Audit Committee of Executives and the Audit
Committee of the Board oversee the internal audit and control functions
and guide the Bank in developing and implementing effective systems
with positive and timely interventions.

The Regional Inspectorates examine adherence to the laid down Systems,
Internal Controls, Policy and Procedures by branches and offices in
accordance with statutory and regulatory requirements. During 2015-16,
RBIA of all 1509 branches / auditable units, programmed for onsite
inspection, was conducted and 80.48% of the audited branches have
secured "Low Risk".

RBIA is supplemented with Concurrent Audit of special branches and high
risk areas on a continuous basis. During the year, 480 branches /
offices, encompassing 78.09% of Bank''''s business, were covered under
Concurrent Audit against 50% stipulated by RBI.

Information Security Audit of all service branches and Retail Asset
Central Processing Centres (RACPC) was conducted by CISA qualified
officials. Bank''''s outsourced financial activities were audited as per
RBI directives. Bank has also introduced the system Sustenance Audit
during the financial year 2015-16 to strengthen overseeing and improve
checks and balances.

Risk Based supervision (RBS)

Risk Based Supervision (RBS) focuses on evaluating both present and
future risks, identifying incipient problems and facilitates prompt
intervention/ early corrective action. The Bank has successfully
migrated and implemented Risk Based Supervision (RBS) during 2015-16,
one of the 5 Banks chosen by the Reserve Bank of India in the second
batch of RBS implementation.

know your Customer (KYC), Anti Money laundering (AML) and Combating of
financial terrorism (CFT)

Bank has formulated a comprehensive policy on KYC, AML and CFT with an
objective of preventing the Bank from being used by unscrupulous
elements for money laundering or terrorist financing activities.
Procedures and systems have been put in place to ensure that no account
is opened in anonymous / fictitious names or by persons with a criminal
background and/ or having connections with terrorist organisations. A
''''Quick Reference Guide to Know Your Customer Norms'''' has been brought
out to ensure that procedural requirements are adhered to for opening/
operations in accounts. Implementation of KYC Norms and AML guidelines
is being checked by Internal Inspectors, Concurrent Auditors and Field
Vigilance Officers, visiting Executives, ex-staff members and Decoy
customers. System generated reports are submitted to Financial
Intelligence Unit ? India (FIU ? IND) as per the prescribed

Control unit

The Control Units at Head Office and all Regional Offices monitor
customer transactions under 82 major alert indicators. Workshops on
Control and Review Mechanism were conducted during the year at all
Regional Offices to sensitise the officials at branches and for Nodal
Officers of Control Units of all Regional Offices.

Fraud Monitoring Cell

Bank has an independent Fraud Monitoring Cell, which is functioning as
per the RBI guidelines on Frauds - Classification and Reporting. During
the financial year, 21 frauds amounting to Rs. 104.65 crore were
reported to RBI. All frauds involving Rs. 1 lakh and above are
systematically analysed in terms of modus operandi and system lacuna,
if any, and reports are submitted to the RBI in time. Police/ CBI cases
are filed in respect of all such fraud cases. Fraud cases involving Rs.
1 lakh and above are placed before the Board and Board instructions /
guidelines are implemented. Quarterly review of fraud cases is made by
the Audit Committee of the Board. A review of large value frauds is
also placed before the Special Committee of the Board at periodical
intervals. Latest position / progress in all the fraud cases are
reported to RBI on quarterly basis. Attempted frauds are dealt with in
terms of RBI guidelines. Periodical guidelines / instructions are
issued on fraud prevention measures and system improvements.


The Vigilance Department at Head Office is headed by Chief Vigilance
officer of the rank of Executive Director who is presently on
deputation from Punjab & Sind Bank. The Vigilance Department oversees
all vigilance works of the Bank as per the guidelines given by Central
Vigilance Commission. In addition, Vigilance Department carries out
random vigilance inspection of branches and Controlling Offices,
concentrating on preventive vigilance through Field Vigilance Officers
stationed at Regional offices. All efforts are made to plug the
loopholes in the existing systems to prevent recurrence of similar
frauds and to strengthen the preventive vigilance.


Board approved Compliance Policy is a requirement under the extant RBI
guidelines and accordingly, the Bank has adopted Compliance Policy and
functions as directed in the Policy. The Compliance Department is
headed by the Chief Compliance Officer who is in the Rank of a General
Manager. Compliance Officers have been identified at all the
Departments at H.O, Regional Offices and Branches. Workshop on
Compliance and Role of Compliance Officers was conducted for all the
Compliance Officers. The Compliance Department H.O ensures compliance
with various guidelines issued by the Government of India, Reserve Bank
of India, IBA and other Regulators. Compliance Tests are conducted
every quarter on the guidelines issued from time to time. Quarterly and
Annual Review on compliance aspects are placed before the Board.

Right to information Act 2005

Government of India enacted Right to Information Act, 2005 which came
into force on October 12, 2005. The Act provides right to every citizen
to secure/access to information under the control of Public
Authorities. It aims to promote openness, transparency and
accountability in administration and in relation to matter connected
therewith or incidental thereto.

Bank has designated all the Branch Mangers as Assistant Public
Information Officers, Second line Executives of all the 31 Regional
Offices as Public Information Officers and Regional Head as Appellate
Authorities under the Right to Information Act, 2005. At Head Office, a
Deputy General Manager is designated as Public Information Officer and
a General Manager of the Bank as Appellate Authority. Bank as a whole
32 offices are provided with Public Information officer and Appellate
Authority respectively under Right to information Act 2005. At Head
office level, one Alternate Public Information Officer and one
Alternate Appellate Authority have also been instituted in the absence
of present Public Information Officer and Appellate Authority in case
of exigency/emergency for discharging the duties as per the RTI Act

Information sought under the RTI Act 2005 is being provided within the
prescribed time frame. During 2015- 16, Bank as a whole has received
and disposed of 834 Applications and 127 Appeals under the RTI Act

Security Arrangements

Bank is constantly reviewing the security arrangements at all branches,
offices, currency chests and ATMs to provide effective, efficient,
unobtrusive and progressively modern security solutions based on threat
perceptions, emerging challenges and guidelines of regulatory,
government and law enforcement authorities. Pro-active and preventive
measures are put in place to safeguard the interests of the Bank.
Following security measures were initiated during the year :

- Strong rooms conforming to RBI specification and BB Class Safes are
being provided to all branches.

- Security Alarm System and CCTV surveillance system have been provided
at all branches.

- Branches categorized as vulnerable from security point of view are
provided with armed security guards during working hours.

- E-surveillance to link CCTV systems at branches/ ATM sites to bank''''s
wide area network, to alert security authorities of any suspicious or
anomalous behavior on real time.

- Security Committees have been formed at HO and Regional Offices to
assess vulnerabilities, take proactive measures to further strengthen
security arrangements and conduct periodical reviews.

Bank maintains close liaison with the law enforcement agencies and is
fully geared to meet the prevailing security needs.

Ambience & Customer service

In order to provide a good ambience and pleasant banking experience to
customers, Bank has undertaken many initiatives during the year. Air
conditioners have been provided to all branches. Concept of Lobby
Managers has been introduced wherein customers, especially senior
citizens and persons with disabilities are given personal attention.
Measurable parameters under various service matters have been specified
to ensure prompt and quality service to customers.



The total staff strength of the Bank stood at 14544 in March 2016 as
compared to 13617 in March 2015. Of the total staff, 7055 are Officers,
4496 Clerical Staff, 2244 Sub-staff, and 749 Part-time Employees in the
subordinate cadre. The number of women employees as at the end of March
2016 stood at 3825 consisting of 1794 Officers and 2031 Award Staff. As
at the end of March 2016, there were 300 employees belonging to Persons
With Disabilities (PWD) category and 854 employees belonging to
Ex-Servicemen Category.


During the financial year 2015-16, the Bank has recruited a total
number of 1687 employees comprising of 907 Officers, 580 Probationary
Clerks and 200 subordinate staff.


The promotions effected during the year 2015-2016 are furnished

Sl. Promotion Promotion to Total
No. From promoted







7 Clerical JMGS-I

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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