Your Directors have pleasure in presenting the Annual Report of the Bank along with the Audited Statement of Accounts, the Profit and Loss accounts and the cash flow statement for the year ended March 31, 2023.
1. Performance Highlights:
» Total Business of the Bank stood at ' 577075 crore as at March 31,2023 compared to ' 532404 crore as at March 31,2022.
» Total Deposits stood at ' 359296 crore as against ' 342692 crore in March 31,2022.
» Total Advances of the Bank stood at ' 217779 crore as against '189712 crore in March 31,2022.
» Total Income for the financial year ended March 31,2023 was ' 29626 crore as compared to ' 25770 crore for the financial year ended March 31,2022.
» Non-Interest Income of the Bank stood at ' 4084 crore for the financial year ended March 31,2023 compared to ' 2968 crore for the financial year ended March 31,2022.
» Operating Profit of the Bank increased to ' 6884 crore for the financial year ended March 31,2023 as compared to ' 5742 crore for the corresponding previous financial year ended March 31,2022 showing increase of 19.89%.
» The Bank has earned Net Profit of ' 1582 crore for the financial year ended March 31,2023 as compared to Net profit of ' 1045 crore during previous financial year ended March 31,2022.
» Business per employee increased to ' 18.70 crore during the financial year ended March 31,2023 from ' 17.52 crore in the previous financial year ended March 31,2022.
» Capital Adequacy Ratio (as per Basel-III) stood at 14.12%@ with Tier I at 12.11% and Tier II at 2.01% for the financial year ended March 31,2023. (@Bank has computed Capital Ratio after adjustment for reckoning NPV of non-interest bearing recapitalization bond issued by Government of India.
» Net worth stood at ' 25449.41 crore as on March 31,2023.
» Cash Recovery (including sale of NPA & written off accounts) improved to ' 4213 crore in the financial year ended March 31,2023 as compared to ' 3617 crore in the previous financial year ended March 31,2022.
» Gross NPA to Gross Advances improved to 8.44% as on March 31,2023 from 14.84% as on March 31,2022.
» Net NPA to Net Advances reduced to 1.77% as on March
31.2023 as against 3.97% as on March 31,2022.
» Provision Coverage Ratio improved to 92.48% as on March
31.2023 from 86.69% as on March 31,2021.
» Net Interest Margin (NIM) improved to 3.64% in the financial year ended March 31,2023 as compared to 3.21% in the Financial Year ended March 31,2022.
» Return on Assets (ROA) is 0.44% for the Financial Year ended March 31,2023.
» The credit deployment under priority sector stood at ' 103518.76 crore during FY 2022-23. However, to take an advantage of excessive lending over ANBC in Priority Sector credit, Bank undertook sale/purchase transactions in PSLCs. During the year Bank sold PLSCs worth ' 4650 crore under PS Advances.
» Agriculture Advance of the Bank stood at ' 42110 crore for the financial year ended March 31,2023 as against '38635 crore for the previous financial year ended March 31,2022.
» MSME Advances for the Financial Year ended March 31, 2023 stood at ' 39199 crore without PSLC and Investment in SIDBI is ' 275.21 crore and Mudra limited is '23.60 crore. PSLC for the FY 2022-23 is 700 crore.
» Retail Loans increased to ' 62726 crore in financial year ended March 31,2023 from ' 52226 crore in financial year ended March 31,2022.
» Housing Loan portfolio of the Bank stood at ' 38793 crore for the financial year ended March 31, 2023, registering y-o-y growth of 28.61%. Housing Loan Portfolio constitutes 61.83% of the total Retail Portfolio as on March 31,2023.
» There are 46 RSETIs in 9 States of the country viz. Madhya Pradesh(18), Bihar(9), Maharashtra(6), Uttar Pradesh(5), West Bengal(3), Chhattisgarh(2), Rajasthan(1), Odissa(1) and Assam(1). During the year 2022-23, the RSETIs conducted 960 training programmes and imparted training to 27428 candidates. Out of this,21036 (i.e. 77%) trainees were settled through bank credit, wage settlement and selffinance. Credit linkage of settled candidates achieved is 12045 i.e. 57%.
» Bank has 2 RRBs as on 31st March 2023 in 2 states covering 23 districts with a network of 1175 branches.
» Under Financial Inclusion, Bank deployed 13142 BC Agents. Bank has opened 997 Urban Financial Inclusion centres.
» Total earning from Bancassurance business is ' 91 crore for the financial year ended March 31,2023.
» Bank is having pan India presence with network of 4493 branches with 65.21 % (2930 branches) in rural & semiurban areas, 3752 ATMs and 9959 BC Points with total 18204 Touch Points as on 31st March 2023.
2. Income & Expenditure:
Details of income and expenditure for the financial year 2022-23 are given hereunder:
|
(' in Crores)
|
| |
31.03.2023
|
31.03.2022
|
Variation
|
%
|
|
1
|
Interest Income
|
25542
|
22802
|
2740
|
12.01%
|
|
- Advances
|
14922
|
11501
|
3421
|
29.75%
|
|
- Investments
|
8715
|
9264
|
(549)
|
-5.92%
|
|
- Others
|
1905
|
2037
|
(132)
|
-6.48%
|
|
2
|
Non Interest Income*
|
4084
|
2968
|
1116
|
37.60%
|
|
3
|
Total Income (1 2)*
|
29626
|
25770
|
3856
|
14.96%
|
|
4
|
Interest Expended
|
13855
|
13315
|
540
|
4.06%
|
|
- Deposits
|
13388
|
12848
|
540
|
4.04%
|
|
- Others
|
467
|
467
|
-
|
-
|
|
5
|
Operating Expenses
|
8887
|
6713
|
2174
|
32.38%
|
|
- Establishment
|
5604
|
3927
|
1677
|
42.70%
|
|
- Others
|
3283
|
2786
|
497
|
17.83%
|
|
6
|
Total Expenses (4 5)
|
22742
|
20028
|
2714
|
13.55%
|
|
7
|
Spread (1-4)
|
11687
|
9487
|
2200
|
23.18%
|
|
8
|
Operating Profit (3-6)*
|
6884
|
5742
|
1142
|
19.88%
|
|
9
|
Provisions*
|
5302
|
4152
|
1150
|
27.69%
|
|
10
|
Provisions For Tax
|
1063
|
672
|
391
|
58.18%
|
|
11
|
Exceptional Item (expenses)
|
0
|
545
|
|
-
|
|
12
|
NET PROFIT/(LOSS) (8-9-11)
|
1582
|
1045
|
537
|
51.39%
|
|
* Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification
|
3. Provisions:
Details of Total Provisions of ' 5302 crore charged to the Profit and Loss Account during the financial year 2022-23 visa-vis previous financial year are detailed as under:
|
(' in Crores)
|
| |
31.03.2023
|
31.03.2022
|
Variation
|
| |
(FY)
|
(FY)
|
|
|
Provisions for Standard Assets
|
681
|
(222)
|
406.76%
|
|
Provisions for NPAs*
|
3534
|
2454
|
44.01%
|
|
Provisions for Restructured Accounts
|
(222)
|
596
|
-137.25%
|
|
Provision on Investments*
|
215
|
653
|
-67.08%
|
|
Provisions for Taxes
|
1063
|
672
|
58.18%
|
|
Others
|
31
|
(1)
|
3200.00%
|
|
Total
|
5302
|
4152
|
27.70%
|
|
* Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification
|
4. Profitability Ratios:
|
(In percentage)
|
| |
31.03.2023
|
31.03.2022
|
| |
(FY)
|
(FY)
|
|
Cost Of Deposit
|
3.92
|
3.86
|
|
Cost Of Funds
|
3.97
|
3.92
|
|
Yield On Advances
|
7.61
|
6.57
|
|
Yield on Investments
|
6.26
|
6.27
|
|
Yield On Investment (Including Trading profit)
|
6.41
|
6.59
|
|
Net Interest margin
|
3.64
|
3.21
|
|
Cost To Income Ratio
|
56.35
|
53.90
|
|
5. Business Ratios:
|
|
(In percentage)
|
| |
31.03.2023
(FY)
|
31.03.2022
(FY)
|
|
Interest Income to Average Working Fund (AWF)
|
7.67
|
6.65
|
|
Non-Interest Income to AWF
|
1.53
|
0.87
|
|
Operating Profit to AWF
|
2.26
|
1.67
|
|
Return on Average Assets
|
0.61
|
0.30
|
|
Business Per Employee (' in crore)
|
18.70
|
17.15
|
|
Net Profit per Employee (' in lakh)
|
7.42
|
3.38
|
|
* Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification.
|
|
6. Capital to Risk Weighted Assets Ratio (CRAR):
The components of Capital Adequacy Ratio were as under:
|
|
|
| |
31.03.2023 (FY)*
|
31.03.2022 (FY)
|
| |
Basel-IM
|
Basel-III
|
|
Tier-I
|
12.11%
|
11.48%
|
|
Tier-II
|
2.01%
|
2.36%
|
|
Capital Adequacy Ratio
|
14.12%
|
13.84%
|
|
*As advised by RBI in its risk assessment report, Bank has computed Capital Ratio after adjustment for reckoning NPV of non-interest bearing recapitalization bond issued by Government of India
|
7. Net Profit/Loss:
The Bank has earned net profit amounting to ' 1582 crore during the financial year ended March 31, 2023. Board of Directors has not recommended any dividend on equity shares for the Financial Year 2022-23.
8. Dividend:
With a view to conserve resources for future business operations of the Bank, your Directors do not recommend any dividend for the financial year 2022-23.
9. Changes in the Board during the year:
Shri Bhushan Kumar Sinha ceased to be Director of the Board of the Bank w.e.f 11.04.2022 who was appointed as Government of India Nominee Director on the Board of the Bank by the Government of India w.e.f 14.05.2018.
Shri Hardik Mukesh Sheth was appointed as Government of India Nominee Director of Bank by the Government of India w.e.f 11.04.2022.
Shri Alok Srivastava, ceased to be Executive Director of the Bank on account of superannuation from the services of Bank on 30.11.2022.
Shri M.V Murali Krishna was appointed Executive Director of the Bank by the Government of India w.e.f 01.12.2022.
Further, Shri Priavrat Sharma was appointed as Part Time Non-Official Director under Chartered Accountant Category by the Central Government w.e.f 08.05.2023
10. Whistle Blower Policy:
Bank follows Central Vigilance Commission Guidelines on Whistle Blower complaints under Public Interest Disclosure and Protection of Informers (PIDPI) resolution. Bank has a web based portal in the name of “Cent e-Whistleblower” to facilitate reporting of malpractices by Employees and Directors without revealing their identities, which would be known to the General Manager - Human Resources Department. Directors and Employees may also approach Chairman of the Audit Committee of the Board directly. This may help to curb malpractices, prevent frauds and boost up morale of the employees.
11. Prompt Corrective Action:
Reserve Bank of India vide their letter dated June 13, 2017, has put the Bank under Prompt Corrective Action (PCA) in view of high net NPA and negative Return on Assets. Bank has fulfilled all parameters under revised PCA framework for SCBs issued by RBI and Bank has come out of PCA vide RBI Press Release dated 20th September, 2022.
12. Performance Evaluation of The Directors and the Board:
In terms of Regulation 25 of SEBI (LODR) Regulations 2015, the performance of the Board as whole and nonindependent directors was evaluated by the Independent Directors in a separate Meeting held on 17th March, 2023.
Further, the performance evaluation of Whole Time Directors is carried out by Committee of Board for Performance Evaluation on the basis of guidelines prescribed by Government of India. Further, Performance of non-official Directors/ Shareholder Director is done by Board of Directors on annual basis.
13. Board and Its Sub-Committees:
The composition of the Board and its Sub-committees as required to be constituted as per the SEBI (LODR) Regulations, Government of India / Reserve Bank India Guidelines and the meetings held therein are mentioned in the Corporate Governance Report.
14. Declaration by Independent Directors during the Year:
All the Independent Directors of Bank have submitted the declaration confirming that they meet the criteria of independence as provided under Regulation 25 of SEBI (LODR) Regulations, 2015.
15. Secretarial Audit:
Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019, Bank had appointed M/s. S.G. & Associates (proprietor Mr. Ganesh Ganpule), Practicing Company Secretaries, Mumbai as a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year 2022-23. The Secretarial Audit Report is annexed to this Report.
16. Management’s Discussion and Analysis Report:
Pursuant to Regulation 34 read with Schedule V to the Listing Regulations, Management's Discussion and Analysis for the year under review is presented in a separate section forming part of the Annual Report.
17. Business Responsibility and Sustainability Report:
Business Responsibility and Sustainability Report as stipulated under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been annexed to this report and also hosted on the website of the Bank (www.centralbankofindia.co.in).
18. Dividend Distribution Policy:
In accordance with the Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated a Dividend Distribution Policy. The policy has been displayed on the Bank's website at (www. centralbankofindia.co.in).
19. Directors’ Responsibility Statement:
The Directors confirm that in the preparation of the annual accounts for the financial year ended March 31, 2023:
The applicable accounting standards have been followed along with proper explanation relating to material departure, if any; The accounting policies framed in accordance with the guidelines of the Reserve Bank of India were consistently applied; Reasonable and prudent judgement 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/ loss of the Bank for the financial year ended March 31, 2023; Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of the applicable laws governing banks in India;
The accounts have been prepared on a going concern basis; Internal Financial Controls are adequate and were operating effectively; and Proper systems have been devised to ensure compliance with the provisions of all applicable laws and these systems are adequate and operating effectively.
20. Corporate Governance:
The Board of the Bank is committed to adopt best Corporate Governance practices in both letter and spirit. The Bank has a well-documented system and practice on Corporate Governance. The Corporate Governance Report of the Bank is annexed to this Report.
21. Acknowledgment:
The Board of Directors places on record its gratitude to the its Shareholders, Government of India, Reserve Bank of India, SEBI, Indian Bank's Association, Customers, Depositors, Stock Exchanges Depositories, and the other Stakeholders for their valuable guidance and support. The Board acknowledges with gratitude the unstinted support and faith of its employees, customers and shareholders.
For and on behalf of the Board of Directors
[M V Rao]
Place : Mumbai Managing Director and
Date : May 24, 2023 Chief Executive Officer
|