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Directors Report Year End : Mar '17    Mar 16

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, 2017.

1. MANAGEMENT DISCUSSION AND ANALYSIS

1.1) Economic and Banking Scenario 2016-17

The global economy was marked with subdued growth with low commodity prices and inflation rates for the major part of the year. However Post U.S. election, expectations of loose fiscal policy in the United States have pushed the dollar into a strong position and higher U.S. Treasury interest rates, thereby giving momentum to the yields across the world as well.

Indian growth story remained robust despite the demonetization drive in quarter 3 of the FY 16-17. Central Statistics Office has estimated the GDP to grow at 7.1% for 2016-17, on an annual basis.

The government''s final consumption expenditure remained the major driver of the growth in FY17, with inflation remaining under control for most part of the year on account of low commodity prices. Investments and exports however remained subdued during the year. Agriculture is likely to register robust growth for the 2016-17 by 4.4% against previous year''s 0.8% (GVA -CSO) backed by good monsoon during the year.

A major drive was undertaken for the revival of banking sector in 2016-17 including fresh issue of licenses for setting up small banks and payment banks.

1.2) Outlook for 2017-18

World growth is expected to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 percent in 2018(WE0, April 2017) on account of stronger activity and robust global demand

On the domestic front, GDP growth is expected to rebound to 7.2% in 2018 and 7.7% in 2019 (IMF), with inflation expected to be around 5 per cent. Revival of subdued manufacturing and exports would remain the major concerns during FY18. However demonetization and lower borrowing costs are expected to revue the private consumption expenditure.

The various proposals in the Union Budget 2017-18 with regards to stepping up of capital expenditure; boosting the rural economy and affordable housing, are expected to be growth stimulating. Replacement of the existing multiple indirect taxes with uniform goods and service tax (GST) across India with effect from July 1, 2017, is set to give a major boost to India''s growth and competitiveness.

Abolition of the Foreign Investment Promotion Board (FIPB) and reforms in FDI policy have been taken to attract higher foreign direct investment (FDI).The strong pace of expansion in global trade and output are expected to ease the external demand constraint on domestic growth prospects

Banking sector is also expected to be benefitted by the passing of the Bankruptcy Law passed for taking remedial action against defaulters

2. Performance Highlights 2016-17

1. Total Business of your Bank stood at Rs. 240590 crore as on 31.03.2017 as compared to Rs. 250230 crore last year.

2. Total deposit stood at Rs. 139053 crore as on 31.03.2017 as compared to Rs. 138990 crore last year.

3. Average Deposits stood at Rs. 133392 crore as on 31.03.2017 as compared to Rs. 124788 crore last year, registering a growth of 6.89% over last year.

4. CASA deposit stood at Rs. 62419 crore against last year figure of Rs. 50967 crore (Registering growth of 22.47%). Total CASA percentage stood at 44.89%.

5. Gross advances of the Bank stood at Rs. 101537 crore as on 31.03.2017 in comparison to Rs.111240 crore as on 31.03.2016

6. Operating Profit stood at Rs 1827.07 crore as on

31.03.2017 as compared to Rs. 2345.18 crore last year

7. Business per branch is Rs 126.83 Crore as on 31.03.2017.

8. Business per employee is Rs 18.54 Crore as on 31.03.2017

2.1 Sect oral Deployment of Credit

While financing to various segments of the economy, the Bank has endeavored to maintain a diversified credit portfolio, with a view to ensuring credit dispersion across sectors. The Bank has continued its efforts to support core, manufacturing and priority sectors as well as infrastructure projects, which serve to drive economic growth. This focus of the Bank will continue in future, in line with the national economic growth priorities.

Industry wise credit deployment as on 31.03.2017 is as under:

Sr.

No.

Percentage to total O/s

O/s as on 31.03.2017

Percentage to total O/s

O/s as on 31.03.2016

Percentage to total O/s

1

Industry

44811.65

44.13

60953.31

54.79

Of which

[Infrastructure

9931.29

9.78

13055.62

11.74

ii. Chemicals, Dyes, Paints etc

3128.00

3.08

3202.56

2.88

iii. Petroleum

1018.97

1.00

2199.72

1.98

iv. Basic Metal and Metal Product

4975.65

4.90

6318.93

5.68

v. NBFCs and Trading

13784.69

13.58

17258.56

15.50

vi. Engineering

3537.38

3.48

3649.50

3.28

vii.

Construction

119.84

0.12

3.49

0.00

viii. Other Industries

8315.83

8.19

10164.32

9.14

2

Agriculture

15491.45

15.26

14851.17

13.35

3

MSME

20419.50

20.11

22143.75

19.91

4

Housing

13595.25

13.39

10550.01

9.48

5

Education

891.05

0.88

804.06

0.72

6

Exports

1212.71

1.19

1226.61

1.10

7

Commercial Real estate

5115.21

5.04

5811.72

5.22

Gross

Advances

101536.82

111240.28

2.2 Quality and NPA Management

The Bank has set up “Asset Recovery Cells(ARC)” at all Zonal offices to ensure focused efforts for up gradation and NPA recovery

The Bank has also set up twelve Asset Recovery Branches (ARBs) across its Zones for large NPA a/cs more particularly where legal actions are in progress so as to make focused follow up of large NPAs

Bank has been implementing Suo Motu non-discriminatory and non-discretionary One Time Settlement (OTS) Schemes. During 2016-17 such scheme i.e. “Mahabank Rahat Yojana” was introduced for NPAs with Ledger Balance up to Rs.25.00 lakhs. Sanction letters pre-approved by Head Office were sent to the eligible borrowers. Additional relief was given to drought affected borrowers with balance up to Rs. 10.00 Lakhs.

During the year 2016-17 another special Suo Motu OTS Scheme (Viz. “Mahabank Karimukti Yojana”) was introduced for recovery in Regular Written Off (RWO) a/cs up to Rs 25 lakhs.

In case of NPA a/cs with dues of Rs.1.00 crore to Rs.10.00 crore; Resolution Agents are appointed on selective basis so as to have an early resolution.

Recovery in smaller NPA accounts (up to Rs.25 lakhs) the services of Recovery Agents are engaged.

Bank has also made intensive follow up with the defaulting borrowers through visits, letters, notices, Recovery Camps, Lok Adalats, actions under SARFAESI / DRT Act.

Position of Non-Performing Assets is as under;

Particulars

Amt. as on 31.03.17

Amt. as on 31.03.16

Percentage of ( /-)

Gross NPA

17188.72

10385.85

65.50

% to advances

16.93

9.34

XX

Net NPA

11229.56

6832.03

64.37

% to advances

11.76

6.35

XX

Cash Recovery

876.42

772.82

12.99

2.3 Foreign Exchange Business

Particulars

2016-17

2015-16

Percentage of ( /-)

Total FEX Business Turnover

598503

595233

0.55

Merchant Business Turnover

36852

29562

24.66

Profit in FEX Business

101.91

77.83

30.93

The International Division has given more thrust on Merchant Business (high yielding Exchange Profit) resulting into growth of 24.66%. in turnover and 30.93% in profit. 37 B Category branches across the country cater to the international business needs of the customers of the Bank. Apart from TIBB at Mumbai as “A” category. The Bank has also NRI Cell to cater the specific needs of NRI clients.

2.4 Investment

The breakup of Investments into SLR & Non-SLR investments is given below:

- The Gross Investments as on 31.03.2017 stood at Rs 38841.56 crore, of which Rs 31613.02 crore are SLR securities and Rs 7228.54 crore are Non-SLR Securities. The excess SLR securities as on 31.03.2017 stood at Rs 1855.01 crore.

- The net investments (net of provisions) stood at Rs 38590.18 crore as on 31.03.2017 as compared to Rs 36230.87 crore as on 31.03.2016. Investments under Held to Maturity (MTM) category consist of 77.66%, while Available for Sale (AFS) comprised of 22.34% of total investment portfolio as of 31.03.2017. The net interest income from investment activity increased to Rs 2829.47 crore from Rs 2735.20 crore during the last year (growth of 3.45%).

- The Non-Performing Investments stood at Rs 655.45 crore as on 31.03.2017.

2.5 Merchant Banking:

The Bank handled 70 issues (previous year 126 issues) of Commercial paper amounting to Rs 30170 crore (previous year Rs 54060 crore) for its clients as an Issuing and Paying Agent (IPA) during the year.

2.6 Borrowings:

The borrowing of the Bank as on 31st March 2017 stood at Rs 8136.65 crore including re-finance as under;

Particular

Amount as at 31.03.2017

Amount as at 31.03.2016

Percentage of ( /-)

Total Borrowing

8136.65

9228.10

(0.12)

Borrowing - CBLO

0

74.54

(1.00)

Of which

Refinance

from

2892.95

4046.17

(0.29)

NABARD

420

893.34

(0.53)

EXIM BANK

324.25

331.27

(0.02)

RBI

0

500

(1.00)

NHB Refinance

277.89

370.52

(0.25)

Mudra Refinance

370.81

370.81

0.00

SIDBI

1500

1580.23

(0.05)

Borrowings in the form of bonds & debentures capital instruments

5225

5100

0.02

Borrowings outside India

18.65

7.34

1.54

Others

0.05

0.05

0.00

The Bank does avail refinance depending upon its liquidity position, deployment of funds and also cost of such refinance despite its eligibility to avail refinance at higher level.

2.7 Depository Services

- Bank is Depository Participant (DP) of Central Depository Services of India Ltd. (CDSL) since September 1999.

- The Bank has also introduced Basic Services Demat Account Facility (BSDA)

2.8 Banc assurance

- Bank had added two new partners namely M/s Future Generali (Non-Life Insurance Company) and M/s Cigna TTK (Standalone Health Insurance Company) under Banc assurance in the month of Feb.2017.

- Insurance for all the securities charged to the Bank may be done invariably under Banc assurance arrangement with UII Co. Ltd. and M/s Future Generali.

- 1241 branches are logged in as of 31.03.2017 for LIC Banc assurance business.

- We had created portal for Popularization of Mahaswastya Yojana, All new as well as renewal of cases are done through the portal in T 3 days. Now, the customer having internet banking facility can make the payment online and generate the policy instantaneous. This year, till 31.03.2017, 79 bank branches declared as BIMA Branch.

- During the year 2016-17, 6993 life policies and 102752 Non-Life policies were made.

- The Bank earned a commission of Rs 6.03 crore from life insurance and Rs 4.94 crore for non-life insurance business during the year 2016-17.

2.9 Government Business

- During the year 2016-17, 746218 challans of Direct Taxes and 178751 challans of Indirect taxes were collected by the branches. Our Branches are also collecting other state Govt. taxes including GRAS of Maharashtra State and the total number of Challans collected during the Year is 1189393. Total commission to the tune of Rs 5.64 Cr was received on Tax collection business from Central Government.

- The Bank is processing and crediting monthly pension payments of more than 1,14,886 Central Government, Defense, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2016-17 is Rs. 13.58 Cr.

2.10 Income, Expenditure and Profitability

The total income of the Bank decline from Rs 14072.27 crore in FY 2015-16 to Rs. 13570.03 crore in FY 2016-17

Particulars

2016-17

2016-16

Variation (per cent)

Interest / discount on advances / bills

8469.96

9934.83

(14.74)

Income on investments

2829.47

2735.20

3.45

Interest on interbank lending & other Interest

762.53

382.95

99.12

Total interest income

12061.96

13062.98

(7.59)

Non-interest income

1508.07

1019.29

47.95

Total Income

13670.03

14072.27

(3.57)

Interest on deposits

8075.59

8421.88

(4.11)

Interest on borrowings

11.61

54.88

(78.84)

Other Interest expenditure

800.07

697.52

14.70

Staff expenses

1807.29

1540.98

17.28

Other Operating expenses

1048.40

1011.83

3.61

Total Non-interest expenses

2866.69

2662.81

11.86

Total Operating Expenses

11742.96

11727.10

0.14

Operating Profit

1827.07

2345.18

(22.09)

Provisions and Contingencies

3199.58

2244.49

42.55

Net Profit

(1372.51)

100.69

(1463.10)

2.11 Financial Ratios

Particulars

2016-17

2016-16

EPS (Rs)

(11.75)

0.91

Cost to Income Ratio (percent)

60.98

52.12

Return on assets (percent)

(0.86)

0.07

Return on equity (per cent)

(24.92)

1.39

Book value per share (Rs)

46.96

63.36

Profit per Branch (Rs in lakh)

(72.35)

5.31

Profit per employee (Rs in lakh)

(10.58)

0.73

Business per Branch (Rs in crore)

126.83

132.05

Business per employee (Rs in crore)

18.54

18.18

Interest income as per cent to Average working funds

7.55

8.71

Non-Interest income as per cent to average working funds

0.94

0.68

Net Interest Margin (per cent)

1.99

2.59

Operating Profit as per cent to average working Funds

1.14

1.56

Staff expenses as a percent to average working funds

1.13

1.03

Dividend (per cent)

0

0

Net worth (Rs Crore)

5486.47

7403.05

CRAR (%) (Basel III)

11.18

11.20

Of which, Tier I (%)

9.01

9.02

CET 1

7.28

7.88

2.12 Capital from Government of India

During the March 2017 quarter, Government of India vide its letter no. 7/38/2014-BOA dated 16.03.2017 infused Rs.300.00 crore by way of preferential allotment of equity shares and the amount was maintained under Share application money pending for allotment, till the allotment of equity shares done. However, RBI has allowed to treat share application money pending for allotment as CET1 capital for computation of CRAR.

2.13 Net worth

The Bank''s Net Worth stood at Rs.5486.47 crore as on 31.03.2017 as against Rs 7403.05 crore as on 31.03.2016.

2.14 Capital Adequacy Ratio

The Capital Adequacy ratio stood at 11.18% as on 31.03.2017, against the minimum of 10.25% (including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio (including CCB) stood at 7.28%

2.15 Dividend : Your Directors do not propose any dividend for the FY 2016-17, as the Bank has incurred loss.

3 .1 Branch/ATM Network:

As on 31.03.2017, the total branch network comprised of 1897 branches spread across all the 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 31.03.2017 is given in the table below:

Sr.

No.

Classification

As on 31.03.2016

As on 31.03.2017

1

Rural

658

618

2

Semi-Urban

434

434

3

Urban

366

343

4

Metro

437

502

Total

1895

1897

# 36 Branches like Service /Retail Asset/Recovery Br''s are converted as a “Back Office” as per RBI Guidelines on 01.06.2014.

ATM NETWORK

31.03.2016

31.03.2017

Offsite

577

587

Onsite

1284

1291

Total

1861

1878

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 2016-17 the Bank recruited 127 Officers in Scale I, 1 Security Officer in Scale II, 79 Clerks and 12 Sub staff.

During the year, 1017 employees ceased to be in service on account of retirement, VRS, resignation, termination and death.

Inter scale promotions of officers were carried out during 201617. Following number of candidates were promoted.

JMGS-I

TO

MMGS-II

MMGS-II to MMGS III

MMGS-III TO SMGS-IV

SMGS-IV TO SMGS-V

SMGS-V

TO

SMGS-VI

SMGS-VI TO TEGS-VII

708

90

108

59

24

4

During the year 2016-17, 19 Sub staff were promoted to Clerical cadre.

Cadre wise staff position as of 31.3.2017 with sex ratio percentage is as under :

Category

Male

%

Female

%

Total

Officers

4710

73.82

1670

26.18

6380

Clerks

3005

63.62

1718

36.38

4723

Sub-staff

1682

89.90

189

10.10

1871

Total

9397

72.43

3677

27.57

12974

The top three branches in disbursement and recovery of advances to SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar.

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 business growth.

The number of employees belonging to different categories is as under:

S

No

Category of Employees

No. of Employees

Percentage to total

1.

Women

3577

27.57%

2.

Physically Challenged

214

1.65%

3.

SC Employees

2370

18.27%

4.

ST Employees

1035

7.98%

5.

OBC Employees

2163

16.67%

6.

General Employees

7406

57.08%

TOTAL employees working in the Bank

12974

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 details of compassionate appointments and payment of Ex-gratia lumpsum amount for the year 2016-17 is as under :

Compassionate Appointments

Payment of Excreta

Cadre

No.of

employees

No.of

employees

Amount paid

Clerk

6

2

Rs.14.00 Lacs

Substaff

12

2

Rs.12.00 Lacs

The Contributory Group Insurance Medic aim Policy for all employees including retired employees, has been renewed w.e.f. 1.4.2017 and the Sum insured is increased upto Rs.10.00 Lakhs for existing employees. The details of renewal of policy areas under :

Employees

No.of Employees

Premium paid

Existing

970

117.30

Retired

1740

219.44

Total

2710

336.74

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 three more courses in the list of courses for reimbursement of fees thereby making total 25 courses eligible for reimbursement of examination fees.

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.

Training Activities:

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 programs 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 1.4.2016 to 31.03.2017 are as under-

Cadre

No. of Prog

Training

Days

Employees

Trained

Officers

146

563

3984

Clerks

44

102

684

S/staff

40

76

619

Total

230

741

5287

3.3 Technology Initiatives

The Bank had taken off & successfully initiated / launched various Major IT Projects during 2016-2017 which are enumerated as under:

1. During the Year 2016-17, Upgrade of Contact Center Operations including Integrated Voice Response System (IVRS) was successfully done & System is made operational

2. Bank launched ‘Maha UPI'', its UPI mobile application from 26/08/2016. As on 31/03/2017, 1,10,749 customers are registered for UPI.

3. ISO 27001:2013 Re-Certification achieved by the bank during September 2016, for its 4 IT Divisions, thereby continuing the Quality ISMS (Information Security Management System) in our Bank.

4. Cheque Truncation System (CTS) is implemented at all South Grid Centers as per RBI directives..

5. Bank started the Paper-less ATM-RePIN facility (Green PIN) for ATM Card through its ATM Machines. This facility overcomes all shortcomings of the conventional re-pin request process.

6. As per Directives of GOI received from time to time during the Demonetization Phase, Bank has effected timely changes in ATM Cash Withdrawal Limits. Also, the Bank successfully completed the massive exercise of physically recalibrating all its 1878 ATMs in time bound manner. These ATMs have been recalibrated on account of demonetization, for the New Rs.500 & Rs.2000 notes.

7. New Internet Banking Portal is launched for Retail Customers.

8. Bank has implemented Self Update Pass Book Printers & Bunch Note Acceptor Machines in a big way at various locations across the Bank. The same shall be continued to ensure fulfillment of customer requirements/satisfaction.

Bank''s Own EFT Switch, is helping the bank to derive 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. As on 31/03/2017, the total ATM card base of the Bank stood at 64.54 Lakhs, which includes 1.11 Lakh Rupay Platinum Chip cards.

Bank''s Internet Banking, Mobile Banking, UPI & other online applications are well received by our Customers. As on 31/03/2017, the number of customers registered for Internet Banking, Mobile Banking & UPI stood at 6.97 Lakhs, 2.92 lakhs & 1.11 Lakhs respectively.

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 customers.

Bank has in place a captive Security Operations Centre (SOC) for monitoring Critical IT Infrastructure on 24 x 7 basis. The process for revamping the existing Security Operation Center (SOC) to Cyber Security Operations Center (CSOC), as per RBI Directives is initiated & in progress.

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. Clearing processing for outward clearing was made live in Nagpur Zone during April 2016. It is being extended to Pune Centers in a phased manner, so as to move towards the goal of Centralized Clearing in future.

In the coming FY 2017-2018, Bank proposes to take up / implement the following IT Initiatives -

1. CBS Contract Renewal.

2. Cyber Security Operations Centre (CSOC)

3. Additional Network Service Provider for Leased Line / VSAT Branches

4. LMS- end to end- LOS to Recovery, OTS, EWS, Lead Management etc

5. International Financial Reporting Standards (IFRS).

6. Upgrade of MIS ADF system.

7. Integrated Risk Management Solution.

8. SWIFT DR setup.

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 maior recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee.

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-fledged 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.

Sr.

No.

Particulars

2016-16

2016-17

1

Customer complaints at the beginning of the year

2

73

2

Complaints received during the year

3218

2912

3

Complaints redressed during the year

3147

2931

4

Complaints pending at the end of the year

73

54

It is Bank''s endeavor to redress all complaints within a week''s time.

Kiosk Machine has been installed at Head Office to enable the customer to register online complaints / suggestions and is in operation since 14.03.2013.

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.

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.

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

The Bank has put in place Risk Management Policies and Strategies, enables it to identify, measure, monitor and manage risk efficiently and establishes control systems in line with the Bank''s aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor the risk at Bank level in accordance with RBI Guidelines. Bank has also constituted sub-committees headed by Top Management of Bank.

The Bank is Compliant to the RBI guidelines on disclosure requirements under Basel III Capital Regulations.

3.7 Brand Image:

Your Bank with a view to develop Brand Image of Bank, publicize Bank''s various products coupled with Corporate Social Responsibilities has Marketing & Publicity Policy as well as independent vertical.

Bank has extended Donations under its Corporate Social Responsibilities to National Sports Development Fund (NSDF), Rotary Club Nigdi for the construction of water Tank in Nigade Village, Balewadi Stadium for providing Water Coolers, “Shrutakevali Education Trust” for Bahubali Children''s Hospital, Shravanabelagola, Karnataka, NAAM Foundation famous NGO working on issues like education, infrastructure, employment, food etc.,

3.8 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. Some of important responsibility of Branches are;

- All branches of banks in all parts of the country should provide the following customer services, more actively and vigorously to the members of public.

- Meeting the demands for fresh / good quality notes and coins of all denominations.

- Exchanging soiled notes, and

- Accepting coins and notes either for transactions or exchange.

- Separate que for senior citizen

4. SOCIO/MICRO ECONOMIC DEVELOPMENT.

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 weaker sections.

The outstanding advances under Priority Sector as of 31st March 2017, aggregates to Rs. 40388.63 Crore constituting 34.99% of the Adjusted Net Bank Credit (ANBC).

4.2 Agriculture

The Bank disbursed Rs. 7752 Crore for agriculture and allied activities during the year 2016-17. The total outstanding advances to agriculture sector reached a level of Rs.17960 Crore as on 31.03.2017 (growth of 4.57%). Bank focused on growth of investment credit under Agriculture during the year 2016-17 and disbursed Rs. 3042 Crore. Bank also entered into strategic tie-up arrangements with Tractor Manufacturers, Micro Irrigation Companies for promoting farm mechanization and micro irrigation activities during the year.

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 gained popularity especially in rural areas where it is being propagated successfully and vigorously. The Bank has issued total 601303 Kisan Credit Cards to farmers. Credit flow to MKCC beneficiaries has reached to the level of Rs.7057 Crore as on 31.03.2017 (growth of 5.47 %).

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 Bank''s website.

Our Bank has adopted Simplified Loan Application for MSEs 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) is Rs. 20585.22 Crore as at 31.03.2017. Advances to Micro enterprises under priority are 7.48 % of ANBC against RBI target of 7.50 % as of March 2017.

For promoting finance under this category, Bank has entered into strategic tie up arrangements with Truck / Vehicle / Passenger car manufacturers. Bank has also entered into MoU with Bharatiya Yuva Shakti Trust and de-Asra foundation for Credit facilitation and hand holding of the Micro entrepreneurs specially under Women and SC/ST categories. Bank has also partnered with myloanassochem.com portal for generating leads and converting them into business to the bank by financial assistance to MSMEs.

Centralized Processing Cell have been set up at all Zonal Offices for speedy disposal of MSME proposals.

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 disbursed Rs 1732.72 Crore under PMMY against the target of Rs 1800.00 Crore as on 31.03.2017. Bank achieved 96.54 % of target allotted by Government under PMMY.

Bank has launched MUDRA Card on 16.9.2015 and so far issued 8281 MUDRA Cards as on 31.3.2017

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. The Bank has sanctioned loans of Rs 2228.75 Crore to 25955 borrowers under this scheme up to March 2017. During the current FY, coverage under Credit Guarantee Fund Scheme has increased by 11.12%.

4.3.3 Banks exposure to important segments.

S

N

Sector

Outstanding as on 31.03.2017

Outstanding as on 31.03.2016

% of

increase ( /-)

1

Micro Finance

154.52

152.62

-0.06%

2

Weaker Sector

12190

11006

10.76%

3

SC/ST beneficiaries

1738

1684

3.21%

4

Minority Community

2921

3037

-3.82%

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.15792.02 Crore.

Amt. in Rs. Crore

SN

Scheme

Brief Description

Portfolio as of Mar’17

NPA %

1

Maha Super Housing Loan Scheme

Housing Sector being the thrust area, Bank has various Housing Loan schemes in place to meet the needs of all economic segments.

Bank offers housing loan for “purchase / construction of new / existing house / flat, repairs / renovation / alteration of existing house / flat, purchase of plot and construction thereon”

13595.20

2.72

2

Maha Super Car Loan Scheme and Mahabank vehicle Loan scheme

Bank has launched scheme for purchase of New four Wheeler i.e. Car, Jeep, Multi Utility vehicles (MUVs), SUV etc. for personal use. (i.e. not for hiring/ferrying passengers) for individuals (18 years and above).

669.36

4.89

3

Model Education Loan Scheme

Bank is implementing Model Education Loan Scheme as per IBA guidelines and provides hassle free Education loan to all meritorious and deserving Students (Indian National) for pursuing higher studies /education in India and abroad

891.05

5.87

4

Mahabank Top up Loan Scheme

In order to extend additional credit support to existing housing loan borrowers as well takeover of existing housing loan of other banks with additional facility of Top-up Loan, Bank has launched “Mahabank Top Up loan Scheme”.

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.

67.72

2.00

5

Mahabank Gold Loan Scheme

With a view to tap the potential of gold loans as a lucrative asset and to cater to the needs of meeting other personal expenses, whatsoever which include personal expenditure of varied needs like marriage, higher education, medical emergencies, business travel etc, Bank has launched a retail loan product as “Mahabank Gold Loan Scheme” w.e.f. 26.09.2014.

96.58

2.80

6

Mahabank Aadhar Loan Scheme

To cater to the needs of our existing pension account holders in meeting their personal expenses, pilgrimage, medical, domestic needs etc. Bank has re-launched “Mahabank Aadhar Loan Scheme”.

283.21

0.68

6.2 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.

6.3 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.

5.4 BOM SBI International Credit Card

- The BOM-SBI card base is 50064

- The commission received from SBI Card is Rs. 83.00 Lakhs during the year 2016-17.

5.13 ALTERNATE DELIVERY CHANNELS

5.13.1 INTERNET /SMS/Phone Banking

Bank could achieved 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 is expected.

5.13.2 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 an Incentive schemes for Branch staff & Cash Back Offer to customers for Downloading “Maha Mobile App” in the month of December 2015

- Maha Mobile App has been increased by 15744 nos. in the month of December 2015.

- 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 Technologies

7

M/s CC Avenues

2

M/s BILL DESK

8

M/s Citrus Payment Solutions Pvt Ltd

3

M/s EBS solutions limited

9

M/s PayTm

4

M/s Ibibo i.e. PAYU

10

M/s Tec process payment Solutions

5

M/s Times of Money Limited

11

M/s SBI e pay

6

M/s Airpay

12

FSS Payment Solutions

5.14.2 ‘Remit2india’ facility

- “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 India.

- Although the income is very less in this product but is facility/Services which we may be useful to attract NRI customers.

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 7007 Soil and Water samples in the year 2016-17 and accordingly counseling is done. Farmers from the districts of Pune, Ahmednagar, Sholapur and Satara are taking benefit 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 3,245 farmers from April 2016 to March, 2017.

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 26801 educated unemployed youths. The settlement rate is 65 per cent.

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 2016-17 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 state.

In FY 2016-17, 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:

Scheme

Particulars

2014-15

2015-16

2016-17

FI Plan

No of

Transactions by BCA (in lakhs)

20.80

55.27

109.75

Amt of transactions (in Cr)

602.08

2063.37

4702.81

PMJDY

No. of PMJDY

accounts(in

lakhs)

22.96

32.19

42.28

Of Which Aadhaar Seeded

11.81

24.05

33.18

% OF Aadhaar Seeding

51.44

74.71

78.48

Of Which Mobile Seeding

10.74

23.22

32.16

% of Mobile Seeding

46.78

72.13

76.06

Balance in PMJDY A/c (in Cr)

209.86

531.97

932.05

Average Bal. per account actual

914

1653

2205

Zero Bal. PMJDY A/cs

13.43

13.61

16.34

BSBD

Accounts

Total BSBD Accounts

53.30

61.70

71.28

O/S Balance in BSBD A/c (in Cr)

516.50

893.57

1410.85

Average bal. per account (actual)

969

1448

1979

Commission Paid towards BC Services (in Crore)

5.30

11.95

23.07

The Bank has a full-fledged 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 31.3.2017 stood at 408 in its area of operation covering 17 out of 36 districts of Maharashtra State.

All 408 branches and controlling offices are now under CBS. MGB opened 11 new branches during this year.

Bgu Omi ggaSff

Maharashtra Gramin Bank has crossed the benchmark of Rs.11000 Cr Total Business and Rs.100 Cr Operating Profit by achieving Rs.11899 Cr Total Business and Rs.118.94 Cr Operating Profit as on 31.03.2017 with a YOY growth rate of 30.76%

The percentage of CASA to total deposit is 58.94%.Operating profit of MGB is Rs. 118.94 Crore (growth of 30.75%). During this year 2016-17, MGB has grown by 20.07% in total deposits and 11.32 % 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 8.54 lakh accounts have been opened during the PMJDY campaign period and “RuPay ATM debit cards” have been issued to 7.45 lakh 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 2016-17 in the major Key performance parameters.

SR

NO

PERFORMANCE

PARAMETER

TARGET FOR THE FY 2016-17

ACTUAL AS ON 31.03.2017

1

Growth in Core Deposit (%)

10.78

20.07

2

Growth in Advances (%)

10.27

11.32

3

Recovery % June 2016

60.00

58.00

4

NPA Level

227.34

369.37

5

Growth in Agriculture Advances

15.63

13.76

6

CD Ratio

71.21

66.33

7

Increase in No. of SHGs credit linked

4530

8

Increase in No. of KCC Cards

-

233726

9

Net Profit After Tax

42.25

42.19

10

Per Branch Profit (Lakh)

15.97

10.34

11

Per Employee Profit (Lakh)

4.19

2.91

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 Trusts

- 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 1094 Public & Private Trusts. During the year, additional 27 Wills were added making total 1125 Will in its custody for execution.

At present, the Company manages properties both movable and immovable of 69 clients under the Power of Attorney. The Company also acts as the Trustees in respect of 160 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. 2016-17 is Rs.46.92 lakh.

9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY

During the year 2016-17, the Bank has achieved various remarkable achievements in the field of Official Language implementation:

The Town Official Language Implementation Committee, Mumbai has secured Second Prize from the Rajbhasha Vibhag, Ministry of Home Affairs, Government of India for better implementation of Hindi at the hands of Hon. Governor, Rajasthan State in a grand function held at Udaipur. Our Bank is the convener Bank for the committee.

Our Bank was awarded Third Prize by the Mumbai based prestigious Institution ‘Aashirvad’ for better use of Hindi during the year.

31st meeting of the Maharashtra State Level Bankers'' Committee (Rajbhasha) was held under the chairmanship of Shri R. P. Marathe, Managing Director and CEO of the Bank. Bank of Maharashtra is the convenor for this top-level committee. Mr. Nagendra Singh, Director, Ministry of Home Affairs, Government of India, New Delhi was present in the meeting as the Chief Guest. Shri R. K. Gupta, Executive Director of Bank of Maharashtra and Dr. Suneeta Yadav, Deputy Director, Ministry of Home Affairs, Govt. of India were present as special guest on the occasion. Shri Manoj Biswal, General Manager (HRM & Rajbhasha) and Dr. Rajendra Shrivastava, AGM (Rajbhasha) & Member Secretary of the Committee were also present. Top level executives and Hindi officers of all the public sector banks attended the meeting in large numbers. On this occasion Online Rajbhasha Glossary “Rajbhasha Kosh” of Bank of Maharashtra was inaugurated at the hands of Shri Nagendra Singh, Chief Guest and Online Hindi Roster of Bank of Maharashtra was inaugurated at the hands of Shri R. P. Marathe, MD & CEO. Rajbhasha Shield and memento were presented to the members for better implementation of Hindi in their offices.

Hindi day function was arranged at Head Office, Pune on 15th September 2016. Shri R. K. Gupta, Executive Director of the Bank presided over the function. Dr. Mohan Agashe, renowned Marathi and Hindi actor and social worker was the Chief Guest. Shri Narender Kabra, General Manager was also present in the function. Winners of the All India Internal Rajbhasha Trophy Scheme of the Bank were awarded during the function.

An All India Rajbhasha Seminar was organized in Kolkata for all the Hindi Officers of the Bank. Shri R. P. Marathe, Managing Director & CEO of the Bank inaugurated the seminar. Shri Manoj Biswal, General Manager, HRM & Rajbhasha reviewed the performance and guided all the participants. An All India Inter-Bank Essay Competition was organized by our Bank and the winners of the competition were awarded at the hands of Shri R. P. Marathe, Managing Director & CEO of the Bank during the seminar.

Monthly Rajbhasha E-Magazine ‘Rajbhasha E-Pragati'' is being regularly published every month. As a new initiative Rajbhasha E-Pragati in Brail script is also published for the benefit of differently able employees of the Bank.

Bank of Maharashtra is the convenor Bank for Town Official Language Implementation Committee (TOLIC) in Mumbai, Pune, Solapur, Latur & Jalgaon. Meetings of these committees were held regularly during the year and various activities of the committees were organized throughout the year as per the schedule.

Committee of Parliament on Official Language visited our Aurangabad Zonal Office, Jamnagar branch, Ahmadabad Zone and Chennai Zonal Office during the year and reviewed Official Language Implementation work of the Bank. The honorable members of the Committee expressed their satisfaction regarding progressive use of Hindi and the implementation of new initiatives by the Bank.

An All India Rajbhasha Seminar was organized by Syndicate Bank in Manipal in the Month of January, 2017. Shri Manoj Biswal, General Manager, HRM and Rajbhasha represented our Bank in the seminar and addressed the executives of all the banks.

Our bank was awarded First Prize by Town official Language Implementation Committee, Patna for better use of Hindi during the year. Reserve Bank of India is the convener for this committee.

10. SECURITY

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 fire 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 31.03.2017:

- 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 2016-17, the following changes took place in the Board of Directors:

- Shri Ramdev L. Saydiwal, ceased to be the Director of the Bank w.e.f. 20.07.2016.

- Shri Deendayal Agrawal was appointed as Director by the Central Government w.e.f. 26.07.2016.

- Shri Sanjeev Jain, ceased to be the Director of the Bank w.e.f. 18.08.2016.

- Shri Ravindra Prabhakar Marathe, was appointed as MD & CEO of Bank of Maharashtra by the Central Government w.e.f. 26.09.2016.

- Shri Sushil Muhnot, ceased to be the CMD of the Bank w.e.f. 26.09.2016.

- Shri R. Athmaram ceased to be the Executive Director of the Bank by the Central Government w.e.f. 31.10.2016.

- Shri Alekh C. Rout was appointed as Executive Director of the Bank by the Central Government w.e.f. 31.03.2017.

13. BUSINESS RESPONSIBILITY REPORT

As per the SEBI(Listing Obligation sand Disclosure Requirements) Regulations, 2015, Business Responsibility Report (BRR) 2016-17 of the Bank has been hosted on the Bank''s website i.e www.bankofmaharashtra.in. Any member interested in obtaining a physical copy of same may write to the Company Secretary of the Bank.

14. ACKNOWLEDGEMENTS

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 cooperation 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 (R.P. Marathe)

Date : 4 May, 2017 Managing Director and CEO

Source :
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