The Directors have pleasure in presenting the Annual Report of the
Bank with the audited Balance Sheet, profit & Loss Account and the
Report on Business and Operations for the year ended March 31, 2016.
2.12 Non Interest Income
2.13 Income, Expenditure and profitability
The total income of the Bank grew from Rs. 13671.42 crore in FY 2014-15
to Rs.14072.29 crore in FY 2015-16 (growth of 2.93%)
The detailed income/expenditure components are asunder:
(Rs. in crore)
Particulars 2015-16 2014-15 Variation
Interest / discount on 9934.83 9820.78 1.16
advances / bills
Income on investments 2735.20 2539.53 7.71
Interest on interbank lending 382.95 305.13 25.5
and other Interest
Total interest income 13052.98 12665.44 3.06
Non-interest income 1019.29 1005.98 1.32
Total Income 14072.27 13671.42 2.93
Interest on deposits 8421.88 8084.74 4.17
Interest on borrowings 54.88 79.92 -31.33
Other interest expenditure 697.52 625.74 11.47
Staff expenses 1540.98 1633.21 -5.65
Other operating expenses 1011.83 892.72 13.34
Total Non-interest expenses 2552.81 2525.93 1.06
Total Operating Expenses 11727.09 11316.33 3.63
Operating profit 2345.18 2355.09 -0.42
Provisions and 2244.49 1904.40 17.86
Net profit 100.69 450.69 -77.66
2.14 Financial Ratios
Particulars 2015-16 2014-15
EPS (Rs.) 0.91 4.50
Cost to Income Ratio (percent) 52.12 51.75
Return on assets (percent) 0.07 0.33
Return on equity (per cent) 1.24 6.68
Book value per share (Rs.) 63.36 65.61
profit per Branch ( Rs. in lakh) 5.31 23.97
profit per employee ( Rs. in lakh) 0.73 3.18
Business per Branch ( Rs. in crore) 132.05 118.79
Business per employee ( Rs. in crore) 18.18 15.74
Interest income as per cent to Average 8.71 9.21
Non Interest income as per cent to 0.68 0.73
average working funds
Net Interest Margin (per cent) 2.59 2.82
Operating profit as per cent to average 1.56 1.71
Staff expenses as a percent to average 1.03 1.19
Dividend (per cent) 0 8.00
Net worth (Rs. Crore) 7403.05 6975.77
CRAR (%) (Basel II) 11.20 11.94
Of which, Tier I CRAR (%) (Basel II) 9.02 8.76
2.15 Capital from Government of India
The Bank issued 10,51,50,787 equity shares amounting to Rs. 394.00
crore (including share premium) to GoI on preferential allotment basis.
Consequent upon the capital raised during the year, as above, the share
holding of GOI in equity share capital stood at 81.61%
The Bank''s Net worth increased from Rs.6975.77 crore as on 31.03.2015
to Rs.7403.05 crore as on 31.03.2016.
2.17 Capital Adequacy Ratio
The Capital Adequacy ratio stood at 11.20% as on 31.03.2016, against
the minimum of 9.63 %( Including CCB) prescribed by RBI in terms of
Basel III norms. The Common Equity Tier 1 Ratio stood at 9.02%.
The Board of Directors of the Bank has not recommended any dividend for
the Financial year 2015-16.
3 .1 Branch Expansion
During the year, the Bank opened 15 new branches. As on 31.03.2016, the
total branch network comprised of 1895 branches spread over 30 states
and 4 union territories. The branch network includes specialized
branches in the area of foreign exchange, Government business, Treasury
and International Banking, Industrial Finance, Small Scale Industry and
Hi-tech agriculture, Pension Payment, Self Help Groups etc.
Area wise classification of branches as on 31.03.2016 is given in the
Sr. Classification As on As on
No. 31.03.2015 31.03.2016
1 Rural 657 658
2 Semi-Urban 433 434
3 Urban 364 366
4 Metro 426 437
1880 # 1895
# 36 Branches like Service /Retail Asset/Recovery Br''s are converted as
a Back Office as per RBI Guidelines on 01.06.2014.
3.2 Human Resources Management
The Bank has put in place a comprehensive HRM Policy that provides the
road map for acquiring appropriate & need based human resources, its
development through training, job enrichment, reward and recognition
for better performance, career progression, welfare and retention.
During the year the Bank recruited 351 Probationary Officers, 113 Agril.
Field Officers, 10 Rajbhasha Adhikari, 14 Law Officers, 1 Company
Secretary & 34 Chartered Accountants in Officer Cadre and 61 Clerks & 36
Armed Guards were also recruited.
During the year, 1044 employees ceased to be in service on account of
retirement, VRS, resignation, termination and death.
Inter scale promotions of officers were carried out during 2015- 16.
Following number of candidates were promoted.
JMGS-I MMGS-II MMGS- SMGS- SMGS-V SMGS-
TO to MMGS III TO IV TO TO VI TO
MMGS-II III SMGS-IV SMGS-V SMGS-VI TEGS-VII
196 485 166 39 20 4
During the year 2015-16, 106 Substaff were promoted to Clerical cadre
and 300 Clerks were promoted to Officer Cadre.
To recognize outstanding performance in Banking activities and to
motivate others to perform better, various schemes like Performance
Linked incentives to all staff of Best Performing Branches etc. are in
The top three branches in disbursement and recovery of advances to
SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr.
The Bank has been allocating up to 3 per cent of its net profit towards
various schemes for the welfare of staff including retired staff. The
welfare schemes are administered by a Central Welfare Committee
consisting of management & employees representatives.
The Bank has healthy industrial relations.
The Bank has been complying with the reservation policy of Govt. of
India. Special Cells at Head Office and all Zonal Offices are functioning
to monitor the implementation of the reservation policies and to
redress grievances of SC/ST/OBC & Physically challenged employees as
well as ex-servicemen. The Bank has designated Chief Liaison Officers
at Head Office and has set up SC/ST Cells at all Zonal Offices. During
the year periodical meetings were held with SC/ST/OBC Employees
Association to discuss implementation of reservation policy and other
constitutional safe guards and also to facilitate involvement in
The number of employees belonging to different categories is as under:
No Category of Employees No. of Percentage
Employees to total
1. Women 3739 27.16
2. Physically Challenged 184 1.34
3. SC Employees 2563 18.62
4. ST Employees 1082 7.86
5. OBC Employees 2116 15.37
6. General Employees 8004 58.15
TOTAL employees 13765
working in the Bank
Rosters have been maintained as per Government guidelines and are
regularly inspected/ checked.
Compassionate Appointments - A Scheme for ''Compassionate Appointments''/
Payment of Ex-gratia lumpsum amount to /of heirs of employees dying in
harness or retiring due to incapacitation framed as per the directives
of Government of India, has been implemented.
The Contributory Group Insurance Mediclaim Policy for all employees
including retired employees, has been renewed w.e.f. 1.4.2016 and the
Sum insured is increased upto Rs.10.00 Lacs for existing employees.
The reimbursement of examination fees & payment of cash incentive /
Honorarium in respect of courses from Indian Institute of Banking &
Finance, MBA from reputed Institutions & CFA has been widened by adding
fve more courses in the list of courses for reimbursement of fees
thereby making total 22 courses eligible for reimbursement of
A policy for granting special leave and 100% reimbursement of
hospitalization expenses to officers when he meets with an accident /
injury while on duty is in place.
Policy for ''granting incentives, to officers posted & transferred in
North eastern zones from other zones''framed as per the directives of
Government of India.
The Bank has a training system which facilitates attention to regular
periodic assessment of skill gaps at various levels in relation to
existing and emerging business opportunities. Skill building in credit,
Forex, customer relationship management, marketing of products and
services, credit monitoring and recovery, risk management, technology
based banking, branch management, complying with statutory, legal and
policy requirements and preventive vigilance received special attention
during the year.
Training programmes were also held on thrust areas like financing SMEs,
retail lending, agriculture finance, soft skills and rural development.
Cadre-wise Break up of Employees trained during the period 1.4.2015 to
31.03.2016 are as under-
Cadre No. of Prog Training Employees
Offcers 129 547 4030
Clerks 64 208 1248
S/staff 37 74 692
Total 230 829 5970
3.3 Technology Initiatives
The Year 2014-2015 was a milestone year for the Bank as far as
technology implementation & up-scaling was concerned. The Year
2015-2016 is being observed as Stabilization Year/Technology
Augmentation Year for the various initiatives undertaken during the
Year 2014-2015, in addition to new initiatives that have been taken up
for implementation during the Year 2015-2016 and enumerated as under:
1. CBS Hardware Augmentation Project covering DC & DR was undertaken &
successfully completed during the year to take care of increasing
transactions load and to ensure smooth functioning of CBS system at
2. E-Gadgets implemented in a big way during the year with
commissioning of Self Update Pass Book Printers, Queue Management
Solution & Bunch Note Acceptor Machines at various locations across the
Bank. The same will be continued during next financial year to ensure
fulfillment of customer requirements/satisfaction.
3. Latest ISO 27001:2013 Certification secured by the Bank for its four
IT Divisions, thereby continuing the Quality ISMS (Information Security
Management System) in our Bank.
4. ''Maha Mobile''New Gen Mobile Banking Application which was launched
in January 2015 got stabilized during the year and was well received by
our customers. As on 31/03/2016, 112210 users are registered for this
5. ''Mahasecure''a Two Factor Authentication (2FA) Solution for Retail
Users & active Corporate Users has been implemented as a part of the
effort to respond to the ever evolving information security trends and
the responsibility to enhance security features in the Internet Banking
facility. One Time Password (OTP) for Fund Transfer is also implemented
under Mahasecure Application. No phishing attacks have been reported
after the implementation of this product.
6. IMPS-P2A (Immediate Payment System - Person to Account) & IMPS-P2P
(Immediate Payment System - Person to Person) Fund Transfer facility
made available under Internet Banking from 12/06/2015 & 23/12/2015
respectively. Using this facility, customers can do inter- bank as well
as intra-bank (24 x 7) fund transfer upto Rs.5,000/- in a day.
Bank''s Own EFT Switch which was implemented Live from 08/05/2014, got
fully stabilized during the year. As a result of the implementation of
own EFT Switch, Bank is deriving significant advantages like reduced
turn-around- time to introduce new ATM Product, Better customer
experience, Reduced risk, Instant Hot-listing of a card through
multiple channels, Value Added Services etc.
Bank has collaborated with VISA for International Debit Cards and with
NPCI for Rupay Debit Cards. Bank has commenced issue of Rupay Platinum
Cards from 28/03/2016. As on 31/03/2016, the total card base of the
Bank stood at 57.19 Lakhs.
Various facilities are being provided through our Internet Banking
platform for facilitating online payment of taxes, utility bill
payments, online shopping / e-commerce, railway reservation, LIC
premium payment, e-SBTR etc and facility for viewing tax credit
statement 26AS and Demat account with the Bank.
Bank has robust Information Security Management System (ISMS) framework
in place. Its information security policy statement being: Bank of
Maharashtra is committed to protect and safeguard the critical
information of all stakeholders in order to ensure secure business
operations. Bank has also implemented major security initiatives
recommended by Gopalakrishna Committee for internal and external
Bank has in place a captive Security Operations Centre (SOC) for
monitoring Critical IT Infrastructure on 24 x 7 basis. The SOC shall
enable the Bank to effectively address security threats by constant,
proactive monitoring of security events and meet the compliance
requirements. This has enabled the Bank to automate the vulnerability
discovery process by constantly analyzing the logs generated by the
core IT security and application infrastructure. The other services
namely Anti- Phishing & Anti-Trojan services are also implemented.
Bank is handling the e-Payments of State Government Taxes of
Maharashtra, Karnataka, Tamil Nadu, Madhya Pradesh & Rajasthan States.
Inward Clearing in Mumbai, Pune & Ahmedabad Centers is already
outsourced. Now, we have started Outsourcing of Outward Clearing in
Nagpur. On stabilization, it shall be extended further to Pune & Mumbai
Centers, so as to move towards the goal of Centralized Clearing in
Bank has implemented Scientific Transfer Pricing Mechanism / Fund
Transfer Pricing during the year.
In Year 2016-2017, Bank proposes to take up / implement the following
IT Initiatives -
1. Risk Based Internal Audit Software.
2. e-TDS Software.
3. Unified Payments Interface (UPI) of NPCI.
4. Bharat Bill Payment System (BBPS) of NPCI.
5. Risk Based Supervision (RBS)
6. International Financial Reporting Standards (IFRS).
7. Rupay Platinum Cards.
3.4 Customer Centric Initiatives taken by the Bank
The Bank has pursued high standards of customer service to ensure
customer satisfaction throughout the year by implementing all major
recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and
As a member of Banking Codes and Standards Board of India (BCSBI), Bank
has adopted Code of Bank''s Commitment to Customer and Bank''s Code of
Commitment to MSMEs.
Bank has printed folder called as My Folder containing all customer
service policies, information on service charges, guidelines on
Government Schematic Loans, Ombudsman and BCSBI Codes. The same is
printed in Marathi, Hindi and English and supplied to all branches and
Zones for making the same available to all customers on demand.
Duly documented policies approved by the Board, on Deposits,
Collection of Cheques, Redressal of Grievances, Compensation ,
Operational Procedure for Settlement of Claims of Deceased Depositors
and Customer Rights Policy are in place.
Customer Service Committees are formed at all branches and their
meetings are conducted regularly on monthly basis. The Standing
Committee on Customer Service at Head Office and Zonal Level Customer
Service Committees at Zones, meet regularly to address and review
various customer related matters and to take steps, for an improvement,
on an ongoing basis.
The Committee of the Board on Customer Service meets on quarterly basis
to monitor the quality of the customer service, redressal of customer
grievances and to ensure customers satisfaction.
Full-fedged grievances redressal machinery is in place to respond
promptly to customer grievances. The Bank has started internet based
mechanism, Standardized Public Grievances Redressal System (SPGRS) for
lodging the complaints or to give suggestions / feedback on services by
the customers and for providing acknowledgement and status of their
feedback / complaints as per the directions of Government of India.
Kiosk Machine has been installed at Head Office to enable the customer
to register online complaints / suggestions and is in operation since
3.5 KYC/ AML
Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards
/ Combating of Financing of Terrorism (CFT) and Obligation of Bank
under Prevention of Money Laundering Act (PMLA) 2002.
The Bank has Board approved KYC-AML-CFT Policy in place. The said
Policy is the foundation on which the Banks implementation of KYC
norms, AML standards and CFT measures is based. The full KYC compliance
entails staff education as well as customer education for which the
following measures are taken by the Bank.
A comprehensive list of KYC documents is uploaded on the Banks web site
for the benefit of customers. Regular training sessions are conducted on
KYC-AML-CFT guidelines at the Banks training establishments to
sensitize the employees.
3.6 Risk Management
Bank has its Risk Management Framework in accordance with RBI
Guidelines and it benchmarks itself against industry best practices.
This enables it to identify measure, monitor and manage risk
It has put in place Risk Management Policies and Strategies and
establishes control systems in line with Bank''s aggregate Risk
Appetite. Bank has constituted Risk Management Committee at Board level
to monitor risk at Bank level. Bank has also constituted sub-committees
known as Credit Risk Management Committee (CRMC), Market Risk
Management Committee (MRMC), Operational Risk Management Committee
(ORMC) and Asset Liability Management Committee (ALCO) to monitor
specific risk areas. These Committees are headed by Chairman and
Managing Director. Executive Directors and General Managers are
members of the Committees.
As per RBI guidelines on disclosure requirements under Basel III
Capital Regulations, Bank has published Disclosures on quarterly and
half yearly basis and put them on the Bank''s website.
3.7 Inspection & Audit:
The Inspection and Audit system and various measures of internal
control are adopted by the Bank to ensure identification /assessment and
mitigations of various risks.
Internal Audit of branches
As per Seth Committee guidelines the Bank is conducting Risk Based
Internal Audit of branches. RBIA of 1139 Branches which were due for
Audit during the year including Top 142 Branches in terms of Business,
The Bank has implemented Off-site monitoring system since 2015 to
strengthen the internal control system in which reports on some
important/ sensitive areas are extracted from the CBS system on
daily/weekly/monthly basis so as to guide the branches to take timely
action for rectification.
The Bank proposes to procure and implement web based integrated audit
software for conducting various types of audits.
Surprise/Snap Inspection of 12 branches were undertaken during the
year, focusing mainly on high risk areas in pursuance of Ghosh
As per approved Audit Plan for 2015-2016, 498 branches and two
departments of the Bank are covered under Concurrent Audit. Bank''s
75.78% total business is covered under concurrent Audit.
Income and Expenditure Audit (I.and E. Audit)
Income & Expenditure audit was carried out at 263 branches as per
approved plan for the period 01.10.2014 to 30.09.2015 having total
business above Rs. 25.00 crore and advances above Rs.5.00 crore.
Expenses Audit of Zonal Office : -
In order to have control over expenditure at Zonal offices a system has
been put in place through half yearly Expenses Audit. The Audit is
conducted once in half year i.e. March and September. The expenses
audit of 33 Zones was conducted as of 30.09.15.
For assessing the effectiveness of Zonal Offices and HO Departments in
terms of supervision, control, profitability and growth in business,
Management Audit of 22 Zonal offices and 17 Departments at Head Office is
carried out during the year 2015-16.
RBI Inspection under Section 35 of the Banking regulation Act:-
The Bank is subject to RBI inspection under Sec.35 of the Banking
Regulation Act during the year. Besides that 1 branch was also
inspected by RBI during the year.
IBA has advised the Banks to implement 88 parameters so far for
generation of AML alerts. Bank has implemented 43 parameters out of 49
parameters as per IBA guidelines and the remaining 6 parameters are
related to 3rd party products. In addition to these the FEX
centers/branches have been sensitized on the guidelines on Trade Based
Money Laundering issued by FIU-IND to prevent fraud/money laundering.
As per Central Vigilance Commission (CVC) guidelines, the Bank has
adopted Integrity Pact & appointed Independent External Monitors
(IEMs), for independent review of compliance of obligations by the
parties under Integrity Pact. This system will ensure transparency,
equity & competitiveness in large value procurements.
To enlighten the participants on preventive vigilance aspects, a
session on preventive vigilance is included in every training
programme. During the accounting year 88 sessions on preventive
vigilance were conducted by vigilance department, where in 2325
employees from different cadres participated.
As a part of preventive vigilance exercise Zones are undertaking
vigilance inspection of Branches, which has helped in detecting the
The Bank has put in place a Compliance Policy, based on the guidelines
of Reserve Bank of India. The Compliance Department is having a Chief
Compliance Officer who monitors the compliance functions. It ensures the
implementation of the statutory / regulatory guidelines coming into
force from time to time. The issues relating to regulatory / statutory
compliances are addressed appropriately. Submission of various
regulatory returns is also monitored.
3.10 Marketing & Publicity:
With a view to publicize Bank''s various products and also brand image
coupled with Corporate Social Responsibilities, Bank has sponsored
various programs like sponsorship to Sharda Shakti, Pune for
organizing Seminar on Women Health Challenges and Solution in Pune,
Sponsorship to Nasik Kumbh Mela, Sponsorship to TERRE Policy centre for
organizing Green Olympiad, Sponsorship to 14th Pune International Film
Festival, Donations to National Sports Development Fund (NSDF), Old Age
Home Chennai during Chennai Flood, Rotary Club Nigdi for the
construction of water Tank in Nigade Village, Balewadi Stadium for
providing 7 Water Coolers, Shrutakevali Education Trust for Bahubali
Children''s Hospital, Shravanabelagola, Karnataka, Donation to Prakrit
Bharati Academy Publishing 10 books on Indian Culture, Religions.
3.11 Citizen''s Charter:
The Bank has adopted the Charter since 2000–01, which details the
duties and responsibilities of the Bank towards its customers. The
charter is displayed at all the branches and Bank''s website. The Bank
has also adopted a citizen''s charter of RBI on exchange of notes and
4. SOCIAL BANKING
4.1 Priority Sector Lending
It has been the constant endeavor of the Bank to facilitate equitable
and sustainable economic development by timely and hassle-free
availability of credit for productive purposes to Small and Marginal
Farmers, Micro and Small Enterprises, Retail Traders, Professional and
Self Employed, Women Entrepreneurs and entrepreneurs from economically
The outstanding advances under Priority Sector as of 31st March 2016,
aggregates to Rs. 41,485 Crore constituting 39.82% of the Adjusted Net
Bank Credit (ANBC). (Growth of Rs. 2,391 Crore, 6.12% over last year).
The Bank disbursed Rs.8179 Crore for agriculture and allied activities
during the year 2015-16. The total outstanding advances to agriculture
sector reached a level of Rs.17174 Crore as on 31.03.2016 (growth of
10.65 per cent). Bank focused on growth of investment credit under
Agriculture during the year 2015-16 and disbursed Rs.1648 Crore. Bank
also entered into strategic tie-up arrangements with Tractor
Manufacturers and Micro Irrigation Companies for promoting farm
mechanization and micro irrigation activities during the year. Tie up
arrangement is also made with three Collateral Manager to capture
market for expanding loan against ware house receipts.
The Bank undertook awareness/sensitization programmes for all the
branches for increasing advances to agriculture by providing hassle
free credit to farmers.
4.2.1 Mahabank Kisan Credit Card (MKCC)
This scheme has gained popularity especially in rural areas where it is
being propagated successfully and vigorously. The Bank has issued total
5,72,221 Kisan Credit Cards to farmers. Credit flow to MKCC
beneficiaries has reached to the level of 6691 Crore as on 31.03.2016
(growth of 19.70 %).
4.3 Micro, Small and Medium Enterprises (MSME)
SMEs are recognized as a major growth engine for the Indian economy.
They generate opportunities for direct and indirect employment by
facilitating use of natural resources and local skills to stem the tide
of migration to urban areas and promote low investment enterprises.
Finance is made available to viable enterprises at an attractive and
low rate of interest. On line enquiry portal is made available on the
Our Bank has adopted Simplified Loan Application for MSMEs for loans up
to Rs. 1.00 Crore and the same is displayed on the Bank''s website. The
Bank has also adopted Bank''s Code of Commitment to Micro and Small
Enterprise and the same is displayed on the Bank''s website.
The Bank''s lending to Micro, Small and Medium Enterprises (Priority
NP) which was at the level of Rs.20,657 Crore as at 31.03.2015,
increased to Rs.22,334 Crore as at 31.03.2016. Advances to Micro
enterprises under priority are 7.79 % of ANBC against RBI target of
7.00 % for March 2016.
For promoting fnance under this category, Bank has entered into
strategic tie up arrangements with Truck / Vehicle / Tractor /
Passenger car manufacturers. Bank has also entered into a MOU with
Bharatiya Yuva Shakti Trust and de-Asra foundation for Credit
facilitation and hand holding of the Micro entrepreneurs especially
under Women and SC/ST categories.
Centralized Processing Cell set up last year at all Zonal Offices for
speedy disposal of MSME proposals has been streamlined.
Bank has launched a new product namely Mahabank MSME Credit for
financing to MSME borrowers during the FY 2015- 16 in addition to fve
products introduced last year.
4.3.1 MUDRA: With the introduction of Pradhan Mantri MUDRA Yojana
(PMMY) which mainly consists of non-farm enterprises in manufacturing,
trading and services whose credit needs are below Rs. 10.00 lakh. Bank
is giving special attention to this segment. Loans given to this
segment for income generation are known as MUDRA loans under Pradhan
Mantri MUDRA Yojana (PMMY) and branded accordingly.
Bank has disbursed Rs.1290.00 Crore under PMMY against the target of
Rs.1155.00 Crore as on 31.03.2016. Bank achieved 111.69% of target
allotted by Government under PMMY.
Bank has launched MUDRA Card on 16.9.2015. MUDRA Card issued as a Rupay
Debit Card which is hassle free flexible credit product that meets
working capital needs of Micro & Small Entrepreneurs and cash can be
withdrawn from any ATM or purchase from Merchandise using POS machine.
Bank has issued 7537 MUDRA Cards as on 31.3.2016
4.3.2 Coverage under CGTMSE Scheme
Under Credit Guarantee Fund Scheme for Micro, Small and Medium
Enterprises of Government of India credit facilities up to Rs.100.00
lakh are covered, wherein no collateral security and third party
guarantee are insisted by the Bank. For the accounts covered under this
scheme, Bank is bearing 50% annual guarantee fee for loans above
Rs.10.00 lakh and annual guarantee fee for loans below Rs.10.00 lakh is
borne by borrower. The Bank has sanctioned loans of Rs.2,005.54 Crore
to 21,287 borrowers under this scheme up to March 2016. During the
current FY, coverage under Credit Guarantee Fund Scheme has increased
5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK
5.1. Credit Flow to Retail Sector
The Bank is providing retail loans for salaried persons, professionals,
businessmen and pensioners for purchase of housing properties/ plots,
repair/ renovation of house, purchase of consumer durables, two/four
wheeler vehicles, education and loan for other personal needs etc. The
retail loan portfolio of the bank is Rs.12567.96 Crore.
5.2. Mahabank Gold Loan Scheme
Gold ornaments are the traditional and inherited form of savings among
the people in India. Being one of the most liquid and precious asset,
it serves as a dependable and acceptable form of security to raise
loans for meeting immediate financial needs for business, agricultural,
consumption purposes such as marriage, medical, educational expenses
etc. People borrow money by pledging Gold Ornaments at very high rate
of interest. To tap the potential of gold loans as a lucrative asset
and to meet the credit requirement of our customers. With a view to
meet the credit requirement of our customers, Bank has launched a new
retail loan product Mahabank Gold Loan Scheme w.e.f. 26.09.2014. The
total portfolio of Gold Loan of our Bank as on 31.03.2016 is Rs. 31.86
5.3. Housing loan to public
The Bank has in place Housing Loan Scheme to meet the needs of all
economic segments including NRIs. Financing housing sector in rural and
urban parts of India is a thrust area. The housing loan portfolio of
Bank is Rs. 10550.79 Crore as on 31.03.2016, which constitutes 83.94%
of total retail portfolio of the Bank. The housing loan schemes of the
Bank were revisited and revised schemes were launched like purchase /
construction of new / existing house / fat, repairs / renovation /
alteration of existing house / fat, purchase of plot and construction
thereon. The Bank has also launched Maha Combo Loan Scheme for
purchase of house and a car taken together.
5.3.2 Mahabank Top-Up Loan Scheme
In order to extend additional credit support to our standard housing
loan borrowers, Bank has launched Mahabank Top Up loan Scheme w.e.f.
26.02.2016. Under this scheme credit is extended for repair /
renovation / furnishing of house, children''s education, Marriage of
Children, Medical treatment, buying a vehicle or hi-tech gadgets etc.
5.4. Model Educational Loan scheme
With the objective of ensuring that all deserving students get
opportunity to pursue higher education, the Bank implemented a Model
Educational Loan Scheme as per IBA guidelines. As of March 2016, the
Bank had lent Rs. 804.12 Crore to 30554 students. The Bank has provided
the facility of submission of application for education loan through
web-access (on line) also. Bank has also introduced a new feature
called Pre Approved Education Loan, to its Model Education Loan
Scheme to address the requirement of multiple sanction letters
required by students applying for study at foreign universities. Bank
also has Model Education Loan Scheme for as Skill Loan, where loans
can be sanctioned for completion of short duration job oriented skill
development programmes. A loan up to Rs.1.50 lakh can be sanctioned
under the scheme.
5.5. Centralized Processing of loans
Bank has established Centralized Processing Cells for retail /
commercial advances at all its 33 Zones for hassle free & due diligence
of loans with aim to improve turnaround time.
5.6. Micro Finance
The Bank has always recognized the importance of credit to rural and
urban poor for taking economic activity. The SHGs have proved to be
effective instruments for empowerment of women Bank has specialized SHG
branches in all six lead districts and at Goregaon, Mumbai.
As on 31.03.2016, there were 139194 SHGs formed by the Bank, out of
which 107286 SHGs have been linked with the bank credit with
outstanding of Rs.154.62 Crore as on 31st March 2016.
5.7. Assistance to SC/ST beneficiaries:
The Bank has been actively extending finance to SC/ST beneficiaries
through various schemes. Total finance as on 31.03.2016 to SC/ST
beneficiaries stood at Rs. 1728.34 Crore, constituting 15.73 per cent of
advances to weaker sections.
5.8. Weaker Sector Advances:
Bank is providing credit facilities to small / marginal farmers, share
cropper, landless labor, SC /ST Beneficiaries, Self Help Groups, Joint
Liability Groups, The total portfolio of weaker Sector advance of our
Bank as on 31.03.2016 stood at Rs. 10,985 Crore constituting 10.55% of
5.9. Advances to Minority Community
A special cell has been set up at Head Offce to review and ensure
smooth flow of Credit to minority community. The branches were identified
in minority concentrated districts and special targets were allotted to
these branches for lending to minority communities. As of March 2016,
advances to Minority community are at Rs. 3037.22 crore as against
Rs.3264.25 Crore of previous year.
5.10 Door Step Banking Services
Bank has introduced Door Step Banking Services for its High End
Customers and the services include Corporate and Retail Cash pickup and
delivery & Cheque Collection Services, at Clients Doorstep.
5.11 BOM SBI International Credit Card
- The BOM-SBI card base is 45347 out of which 23542 cards are used and
monthly spend is approximately Rs. 12.00 Cr.
- The commission received from SBI Card is Rs. 66.00 Lakhs during the
5.13 ALTERNATE DELIVERY CHANNELS
- ATM site wise feasibility/viability study before relocation was
advised and also to achieve more than 100 average daily hits per ATM.
- Continuous follow up for relocation of Low hit Lobby ATMs (Total 405)
has been made and relocation of 335 lobby ATMs is done by 31.03.2016 Of
the remaining 70 ATMs relocations follow up is being made for early
- Relocation of Onsite ATMs is geared up by empowering Zonal Offces by
giving specifc guidelines and numbers of relocations
- Zonal managers are empowered with necessary inputs to decide and
shift low hit ATMs to suitable/viable locations. Analyzing the reasons
for high number of hits on other bank ATM locations (Remote on us)
advised zones to survey the area and relocate the low hit ATMs within
the zone, additionally, Even if we have ATM in the vicinity.
- ATMs are being branded with display of our products / services at
prominent places like Malls, Marketing & Publicity point of view. Few
such ATMs are being installed in the leading malls of Pune. Two ATMs
with branding are made operational in two leading malls in the city of
- 100% relocation of low hit lobby ATMs is completed in Twelve (12)
Zones viz. Aurangabad, Delhi, Goa, Jalgaon, Indore, Jaipur, Solapur,
Latur, MCZ, PCZ, Satara & PEZ. Remaining Zones are followed up on
5.13.2 INTERNET /SMS/Phone Banking
Bank could achieve an increase of 28% in Internet Banking, 31% in Phone
Banking and 33% in SMS banking over the previous year.
With continuous follow up and increase in net security through the
Mahasecure for IBN users, substantial rise in users/online transactions
5.13.3 MOBILE BANKING
- Maha Mobile functionality has been customized and simplified for
increasing the enrolments.
- A user manual on Internet Banking & New Maha Mobile functionality is
prepared & sent to field staff for ready reference & marketing of the
technology based products.
- Bank has introduced a Incentive schemes for Branch staff & Cash Back
Offer to customers for Downloading Maha Mobile App in the month of
- Maha Mobile App has been increased by 15744 nos. in the month of
- Presently, there are 112210 Mobile Banking users.
5.14 Tie Ups
5.14.1 Payment Gateway Services:
- Presently we are providing the facility of Payment Gateway to all our
customers through our online aggregators.
- We have made tie up arrangement with following aggregators.
Sr Particular Sr Particular
1 M/s Atom 7 M/s CC Avenues Technologies
2 M/s BILL DESK 8 M/s Citrus Payment
Solutions Pvt Ltd
3 M/s EBS solutions 9 M/s PayTm limited
4 M/s Ibibo i.e. PAYU 10 M/s Techprocess payment
5 M/s Times of Money 11 M/s SBI e pay Limited
6 M/s Airpay 12 FSS Payment Solutions
- Remit2India is a web-based, person to person money transfer system
that allows individuals particularly our Non-Resident Depositors to
remit foreign currency amount for credit to the Beneficiary account in
- Although the income is very less in this product but this
facility/Services which we may be useful to attract NRI customers.
5.14.3 ECS Mandate and Direct Debit System
- Bank has a tie up with M/s Bajaj Finance Limited (Auto Finance) for
Centralized ECS mandate verification & centralized direct debit system
where in bank is receiving commission of Rs.50,000/- per month for
mandate verification & centralized direct debit.
- Similarly, Bank has also a tie up with M/s Bajaj Finance Limited
(Consumer Finance) & TVS at Banglore.
5.14.4 Online Fee Collection
- We have an arrangement in CBS for online fee Collection of different
institutes; Organizations etc. wherein Bank will be receiving the
- We have already started IBPS (Indian Banking Personal Selection)
online fee collection, over the counter fee collection for Amravati
5.14.5 Online Trading
- Bank has introduced Three Brokers under our Online Share Trading
facility. i.e. M/s Religare Securities Limited, M/s Reliance Securities
Ltd. & M/s Ventura Securities Limited for Online Share Trading.
- Zones have been advised to open the maximum trading accounts.
6. CORPORATE SOCIAL RESPONSIBILITY
The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune
District of Maharashtra have been undertaking various rural
developmental activities for the benefit of farmers''viz. Vermi compost,
Re-development of Saline Soils, Soil Testing etc. Bank has established
Soil testing lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil
Testing Laboratory has analyzed 7418 Soil and Water samples in the year
2015-16 and accordingly counseling is done. Farmers from the districts
of Pune, Ahmednagar, Solapur and Satara are taking beneft of the lab.
A Trust viz. Mahabank Agricultural Research and Rural Development
Foundation (MARDEF) established by the bank, undertakes various
projects and village improvement programmes. MARDEF is imparting
training to farmers on various subjects in Agriculture. Trust has
implemented 94 training programmes for farmers at RDC Bhigwan and
Hadapsar and has benefited 2,363 farmers from April 2015 to March, 2016.
The Bank has established Seven Mahabank Self Employment Training
Institutes (MSETI) for providing training to rural youth and women to
enable them to acquire skills for self-employment through small
business enterprises. The Institute has centers located at Pune,
Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has
so far imparted training to 21386 educated unemployed youths. The
settlement rate is 56.00%.
Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of
Maharashtra and National Institute of Bank Management is actively
involved in formation, nurturing, training and ensuring linkage of SHGs
to Bank Credit.
The Bank has opened Financial Literacy Centers in Six Lead Districts
namely Pune, Nasik, Aurangabad, Satara, Jalna and Thane for creating
awareness about banking schemes.
7. LEAD BANK SCHEME
7.1 Lead Bank Scheme
The Bank has Lead Bank responsibility in seven districts of Maharashtra
State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane.
Every year district credit plans for the districts are prepared and
implemented with the cooperation of other banks as well as in
coordination with District Collectors of respective Districts.
7.2 State Level Bankers''Committee
The Bank is the Convenor of State Level bankers''Committee (SLBC) for
the State of Maharashtra and prepares State Annual Credit Plan. The
plan for the year 2015-16 was for Rs. 1,86,620 /- crore which is
highest in the country. The same was approved in a special meeting held
under the Chairmanship of Hon''ble Chief Minister of Maharashtra. SLBC
also ensures holding of quarterly meetings regularly to oversee the
implementation of State Annual Credit Plans, priority sector lending
and Govt. sponsored schemes in the State. Apart from regular SLBC
meetings, various other meetings are also organized by SLBC to
coordinate between various member banks, State Government, Government
Agencies, Reserve Bank of India, NABARD and the Central Government.
SLBC coordinates a network of more than 15,000 bank branches in the
In FY 2015-16, the State suffered due to continual draught in more than
16000 villages and also onslaught of natural calamities, the brunt of
which is mostly borne by Agriculture and related activities. SLBC has
always been very proactive in such calamities by issuing necessary
guidelines in respect of relief measures, organizing special meetings
and guiding the members whenever necessary.
As SLBC convener, Bank of Maharashtra coordinated implementation of
Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A
total of 136 lakh accounts were opened in the State and the State was
declared as saturated for the purpose of opening of accounts. The
process of opening of accounts is continued.
S L B C Maharashtra received award for highest Adhar seeding of PMJDY
accounts from Department of Financial Service, MOF New Delhi.
7.3. FINANCIAL INCLUSION / PMJDY:
Bank continued to actively participate in the Pradhan Mantri Jan Dhan
Yojana (PMJDY) announced and launched by the Prime Minister of India.
Survey of all allotted 3051 rural Sub Service Areas (SSAs) and 755
urban wards were conducted for identification of households having no
bank account. The Bank has engaged 2,974 Bank Mitrs through corporate
BCs and under own BCA model in all the allotted SSAs. The Bank Mitrs
are being paid monthly remuneration regularly and minimum remuneration
is ensured by paying fixed monthly pay and variable commission.
Total 32.18 lakh Savings Bank accounts have been opened by the Bank
during the PMJDY campaign period and RuPay ATM Debit cards have been
issued to all the accountholders. Savings accounts of all the identified
uncovered households have been opened. The Bank has mobilized Rs.
531.97 Crore in these accounts opened during the campaign period. The
Bank also implemented Aadhaar based account opening using e-KYC. The
Bank is live on Aadhaar Enabled Payment System (On- us and Off-us) and
RuPay card PIN Based transactions. The Bank has been processing the DBT
(Direct Benefit Transfer) and DBTL (LPG Gas Subsidy) for the
accountholders. Bank is having highest number of AEPS transactions in
The Bank has introduced micro insurance products for life (PMJJY).
During this financial year 7,69,482 policies were issued under this
scheme. Other accident micro insurance scheme launched (PMSBY ) was
also launched and as many as 14,13,165 policies are issued under this
group insurance scheme .Atal pension Yojana was also implemented with
full vigour by our bank by issuing 43936 pension accounts under this
The Bank has a full-fedged call centre with toll free number
18001022636 for redressal of PMJDY grievances.
The Financial Literacy Material has been prepared in vernacular
languages and supplied to all Branches / Bank Mitrs for supplying the
same to accountholders during FLC camps. Financial literacy camps are
organized different schools in districts of Maharashtra. All skilling
centers /ITI are mapped under financial literacy project Bank has been
awarded for excellent performance in the field of financial inclusion
from prestigious institutes like IBA, DFS, and Economic Times.
8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS
8.1 Performance of Regional Rural Bank
Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the
Bank, having its Head Office at Aurangabad, Maharashtra State. Total no
of branches as on 31.3.2016 stood at 397 in its area of operation
covering 17 out of 36 districts of Maharashtra State.
All 397 branches and controlling offices are now under CBS. MGB opened
06 new branches during this year.
Maharashtra Gramin Bank has crossed the benchmark of Rs.10000 Cr Total
Business and Rs.100 Cr Operating profit by achieving Rs.10224 Cr Total
Business and Rs.105 Cr Operating profit as on 31.03.2016 with a YOY
growth rate of 22.30%
The percentage of CASA to total deposit is 53.52 %.Operating profit of
MGB is Rs. 105.20 Crore (growth of 15.01 %). During the year 2015-16,
MGB has grown by 22.48 % in total deposits and 22.06 % in advances.
Under Pradhan Mantri Jandhan Yojana surveys of all allotted 898 SSAs
and 80 wards were conducted for identification of households having no
bank account. The Bank has covered all allotted SSAs by engaging BCAs.
Total 4.50 lakh accounts have been opened during the PMJDY campaign
period and RuPay ATM debit cards have been issued to all the account
holders.Maharashtra Gramin Bank has actively participated in the
PMJJBY, PMSBY and APY as well as the PMMY scheme declared by GoI, DFS.
Bank has achieved most of the Targets under MOU_DAP for the financial
year 2015-16 in the major Key performance parameters.
FOR THE FY AS ON
Growth in Core Deposit
1 (%) 17.18% 22.48%
2 Growth in Advances (%) 23.02% 22.06%
3 Recovery % June 14 65% 67%
4 NPA Level Rs.195.00 Cr Rs.153.99 Cr.
Growth in Agriculture
5 Advances 19.67% 25.18%
6 CD Ratio 75.44% 71.61%
Increase in No. of SHGs
7 credit linked 2500 5067
Increase in No. of KCC
8 Cards 35000 173483
9 Net profit After Tax Rs.45.50Cr Rs.53.86 Cr.
10 Per Branch profit Rs.15.85 lacs Rs.17.60 lacs
11 Per Employee profit Rs.4.19 lacs Rs.4.67 lacs
8.2 The Maharashtra Executor & Trustee Company Pvt. Ltd.
Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO), the 100%
subsidiary of Bank of Maharashtra was established in 1946 with an aim
to provide services auxiliary to banking such as:
- Consultation, Drafting & Execution of will
- Consultation, Drafting and Management of Private Trusts / Public
- Management of investments & house properties as attorney
- Guardianship of minor''s property
- Consultation for sale/purchase of property
- Filing of I-Tax Returns for individuals
The Company is located at Pune having its branch units at Pune,
Vashi-Mumbai, Thane and Nagpur. It is managing about 1085 Public &
Private Trusts. During the year, additional 37 Wills were added making
total 1110 Wills in its custody for execution.
At present, the Company manages properties both movable and immovable
of 72 clients under the Power of Attorney. The Company also acts as the
Trustees in respect of 170 policies under Married Women''s Property Act
and as Court appointed Guardian of minor''s property in 6 cases.
The net profit of METCO for F.Y. 2015-16 is Rs.41.01 lakh. It has for
the frst time (Maiden) proposed Dividend of 10% for the year 2015-2016
to its Shareholders.
The Board of Directors has passed New Memorandum of Association and
Article of Association paving way to the Company to undertake different
types of other financial Services.
9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY
During the year 2015-16, the Bank has achieved various remarkable
achievements in the field of Official Language implementation:
Mumbai based prestigious Institution in the feld of Hindi,
''Aashirvad''awarded following trophies in a grand function held on
23.09.2015 to the Bank:
''RajbhashaGourav''Award to Bank''s General Manager (HRM and Rajbhasha)
Shri Manoj Biswal.
''Special Award'' to Bank of Maharashtra for Better Hindi Implementation
during the year 2014-15.
On 07th October, 2015 Hindi day function was held in Head Offce, Pune.
Shri S. Muhnot, Chairman & Managing Director of the Bank presided over
the function. Dr. Sunil Deodhar, renowned Hindi litterateur & Programme
Executive of Akashvani Pune was the Chief Guest. Shri Manoj Biswal,
General Manager, HRM & Rajbhasha was also graced the Function, Bank''s
Executives, Officers & Employees were also present.Bank''s Internal
Rajbhasha Trophy Scheme winner Zonal Offces, Branches and Head Office
Departments were awarded during the function.
An All India Rajbhasha Seminar was organized in Bengaluru on 28th and
29th December, 2015 for all Official Language Officers of the Bank. Shri
S. Muhnot, Chairman & Managing Director of the Bank inaugurated the
seminar. Shri Manoj Biswal, General Manager, HRM & Rajbhasha guided all
Rajbhasha Vibhag, Head Office, Pune published a collection of story
stories ''Anubhuti''written by bank''s own officers and employees.
As per instructions issued by DFS, Ministry of Finance, Govt. of India
a bridge-building exercise between Hindi and other Regional Languages,
our bank sponsored numerous Hindi and Regional language programmes in
various Zones. Sponsored programmes include literary meets, dramas,
folk music and cultural programme.
Monthly Rajbhasha E-Patrika is being regularly published every month.
As a new initiative Brail script of Rajbhasha E-Patrika is also
published for the benefit of visually challenged employees of the Bank.
During its visit on 17th September, 2015 to Lucknow, Committee of
Parliamentary Committee on Official Language reviewed Official Language
Implementation work of Bank''s Lucknow Zonal Offce. The honourable
members of the Committee expressed their satisfaction regarding
progressive use of Hindi and the implementation of new initiatives by
Department of Financial Services, Ministry of Finance, Government of
India, New Delhi, India has organized All India Rajbhasha Seminar &
Review Meeting in Jaipur in the third quarter of 2015-16 on 06th and
07th November, 2015. Our Bank''s General Manager Human Resources
Management and Rajbhasha, Shri Manoj Biswal represented the Bank in the
programme and addressed the executives of all banks.
Joint Director, Department of Financial Services, Ministry of Finance,
Government of India, New Delhi, Jaipurhas inspected our Jaipur Zonal
Offce on 05.11.2015. He appreciated Hindi work of Jaipur Zonal Office.
Bank of Maharashtra is convener of Town Official Language Implementation
Committees of Mumbai, Pune, Solapur, Latur & Jalgaon. All the five Town
Official Language Implementation Committees convened by the Bank
conducted various activities throughout the year and organized meetings
as per schedule.
Our bank was awarded first prize in C Region on 26th November, 2015 by
Town official Language Implementation Committee (Bank), Kolkata.
Our bank was awarded Second prize by Town official Language
Implementation Committee (Bank), Nagpur.
Proactive steps were taken in view of the security requirements at the
branches and for Bank''s staff and also for provisioning of physical
security infrastructure at all branches. This was done after analysis
of the threat perception, current crime scenario, crime pattern, modus
operandi of bank robberies, the breaches of security and fre incidents
besides equipping and training the security personnel and other bank
staff to counter any such eventuality.
11. DIRECTORS''RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts for
the year ended 31.03.2016:
- The applicable accounting standards of the Institute of Chartered
Accountants of India, 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, are consistently applied and proper
disclosures are made for changes, if any;
- 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 the profit of the Bank for the year.
- Proper and sufficient care was taken for maintenance of adequate
accounting records in accordance with the provisions of applicable laws
governing banks, in India; and
- The accounts have been prepared on a going concern basis.
12. CHANGES IN THE BOARD OF DIRECTORS
- During the year 2015-16, the following changes took place in the
Board of Directors:
Shri R. Thamodharan was elected as Shareholder Director of the Bank
Dr. Archana R. Dholakia was appointed as Part time Non Official Director
of the Bank w.e.f 28.01.2016.
The Board of Directors wishes to express sincere gratitude to the
Government of India, the Reserve Bank of India, the Securities and
Exchange Board of India, Insurance Regulatory and Development
Authority, Indian Banks''Association and Stock Exchanges and CDSL for
their valuable advice and support; to the customers and shareholders
for their patronage; to the correspondents and associates for their co-
operation and to all the members of staff of Mahabank Family for
their unstinted commitment and contribution to the overall development
of the Bank.
For and on behalf of the Board of Directors
Place: Pune (S. Muhnot)
Date: 12 May, 2016 Chairman and Managing Director