The Directors have pleasure in presenting the Banks Annual Report of
the Bank along with the Audited statement of Accounts, the Profit and
Loss accounts and the cash flow statement for the year ended March 31,
2011.
1. PERFORMANCE HIGHLIGHTS
. Total Business of the Bank increased by Rs. 41538 crore to Rs. 310763
crore, registering y-o-y growth of 15.43 per cent.
. Total Deposits increased by Rs. 17249 crore to Rs. 179356 crore,
registering y-o-y growth of 10.64 per cent.
. Gross Advance of the Bank grew by Rs. 24289 crore to Rs. 131407 crore,
registering y-o-y growth of 22.67 per cent.
. Operating Profit increased by Rs. 533 crore to Rs. 2591 crore ,
registering y-o-y growth of 25.90 per cent
. Net Profit increased by Rs. 194 crore to Rs. 1252 crore, registering
y-o-y growth of 18.35 per cent.
. Capital Adequacy Ratio (as per Basel-II) reduced to 11.64 per cent
from 12.23 per cent in previous year.
. Net worth increased by Rs. 1181 crore to Rs. 6909.54 crore, registering
y-o-y of 20.68 per cent.
. Gross NPA of the Bank reduced by Rs. 64 crore to Rs. 2394 crore from Rs.
2458 crore in previous year. In percentage term Gross NPA reduced to
1.82 per cent from 2.29 per cent in last year.
. Net NPA increased from Rs. 727 crore to Rs. 847 crore in previous year.
Net NPA percentage reduced to 0.65 per cent from 0.69 per cent in
previous year.
. Net Interest Margin (NIM) stood at 3.31 per cent against 1.86 per
cent in 2010.
. Average Business per Employee increased to Rs. 835 lakh from Rs. 712 lakh
in previous year.
. Net Profit per Employee increased to Rs. 3.96 lakh from Rs. 3.30 lakh in
March 2010.
. Credit to Priority Sector increased to Rs. 41949 crore from Rs. 35393
crore in previous year, recording y-o-y growth of 18.52 per cent.
. Agriculture Advance of the Bank grew by 8.08 per cent, contributing a
share of 18.64 per cent in Net Bank Credit, which is above the RBIs
norms of 18 per cent.
. 7387 beneficiaries were issued Cent Janata Credit Cards during the
year.
. 11877 Self Help Groups formed during the year out of which 11159
groups were credit linked.
. Advances to MSE grew by 27.73 per cent from Rs. 9317 crore in year 2010
to Rs. 11901 crore. Sixty branches have been identified for focus
attention for MSE finance.
. 1776 villages with the population over 2000 have been brought under
Financial Inclusion Plan.
. Retail loans of the Bank grew by 26.29 per cent from Rs. 11190 crore
(2010) to Rs. 14132 crore. The share of Retail Loan in Gross Advance was
10.75 per cent.
. Education Loan grew by 31.18 per cent during the year and the total
loan reached to Rs. 1548 crore.
. Housing Loan portfolio (up to Rs. 20 lakh) shown a growth of 14.41% and
reached to Rs. 7001 crore.
. E-stamping started in the states of Delhi, Karnataka and Tamil Nadu
to provide stamping facility.
. Electronic uploading of Central Civil Pension has been started.
. Bank has been appointed as Registrar by the Unique Identification
Authority of India for carrying out enrolment work for issuance of
Unique ID on pan India basis.
. Corporate Credit increased from Rs. 75616 crore to Rs. 93554 crore
registering a growth of 23.72 per cent during the year.
. Bank has opened 82 new branches during the year and having network of
3728 branches as on 31st March 2011.
. All branches have been brought under CBS platform.
. E-treasury of the Bank made fully operationalised.
. Bank has obtained license to open NRI branches in Anand, Margao,
Hyderabad and Bhuj .
. Bank has signed two MoU for establishing joint venture banks – one at
Maputo, in the Republic of Mozambique and the other at Thimpu in
Bhutan.
. The name of Centbank Financial and Custodial services Ltd.” has been
changed as Centbank Financial Services Limited”.
. Bank has made cash recovery of Rs. 736 crore in NPA accounts.
. Bank has offered & successfully completed Right Issue of Rs. 2497
crores in March / April 2011. The Rights Issue ratio was 3:5 and was
oversubscribed by 1.07 times.
. Bank own the Skoch Financial Inclusion Award 2011 for implementing
the Bihar Rural Livelihood Project also known as JEEVIKA Project and My
FM stars of the Industry Retail Leadership Award in February 2011.
2. INCOME & EXPENDITURE
Details of income and expenditure for the period 2010-11 are given
hereunder:
Rs. in crore
31.03.2011 31.03.2010 Variation %
1 INTEREST INCOME 15221 12064 3157 26.17
- Advances 11254 8648 2606 30.13
- Investments 3767 3307 460 13.91
- Others 200 109 61 83.49
2 OTHER INCOME 1265 1735 -470 -27.09
(Profit on Sale of Investments)
3 TOTAL INCOME (1+2) 16486 13799 2687 19.47
4 INTEREST EXPENDED 9895 9519 376 3.95
- Deposits 9063 9121 -58 -0.64
- Others 832 398 434 109.05
5 OPERATING EXPENSES 4000 2222 1778 80.02
- Establishment 2964 1544 1420 91.97
- others 1036 678 358 52.80
6 TOTAL EXPENSES (4+5) 13895 11741 2154 18.35
7 SPREAD (1-4) 5326 2545 2781 109.27
8 OPERATING PROFIT (3-6) 2591 2058 533 25.90
9 PROVISIONS-NPA/INVST./OTHERS 932 509 423 83.10
10 PROVISIONS FOR TAXATION 407 491 -84 -17.11
11 NET PROFIT 1252 1058 194 18.34
. Interest Income grew by 26.17 per cent during the year
. Net Interest Income registered a growth of 109.27 percent
. Interest expenses on Deposits reduced to Rs. 9063 in March 2011 from Rs.
9121 crore in previous year, because of maturity of high cost deposits.
. Expenses on employees has gone up by 91.97% because of salary
revision for staff & officers and provision of pension & gratuity.
3. PROVISIONS
Details of Total Provisions of Rs. 1339 crore charged to the Profit and
Loss Account during the year 2010-11 vis-a-vis previous year are
detailed as under:
(Rs. in crore)
31.03.2011 31.03.2010 Variation
Provisions for Standard Assets 106 30 76
Provisions for NPAs 632 288 344
Depreciation/Provision on Investments 154 65 89
Provisions for Taxes 407 491 -84
Others 40 126 -86
TOTAL 1339 1000 339
4. SPREAD ANALYSIS
(In percentage)
31.03.2011 31.03.2010
Cost of Deposits 5.71 6.29
Cost of Funds 5.82 6.34
Yield on Advances 10.29 9.82
Yield on Investments 7.14 6.74
Net Interest Margin 3.31 1.86
Cost Income Ratio 60.68 51.91
. Cost of Deposits decreased from 6.29 per cent in 2011 to 5.71 per
cent in 2011.
. The yield on advances and yield on investments both increased to
10.29 per cent and 7.14 per cent from 9.82 per cent and 6.74 per cent
respectively in previous year.
. Net Interest Margin significantly increased from 1.86 (2010) to 3.31
per cent.
. Cost Income Ratio increased from 51.91 per cent in 2010 to 60.68 per
cent, on account of increased establishment expenses
5. BANKING RATIOS
(In percentage)
2010-11 2009-10
Interest Income to Average Working Fund (AWF) 8.49 7.56
Non-Interest Income to AWF 0.71 1.09
Operating Profit to AWF 1.45 1.29
Return on Average Assets 0.70 0.66
Business Per Employee (Rs. in lakh) 835 712
Net Profit per Employee (Rs. in lakh) 3.96 3.30
6. CAPITAL TO RISK WEIGHTED ASSETS RATIO (CRAR)
The components of Capital Adequacy Ratio were as under:
31.03.2011 31.03.2010
Basel-I Basel-II Basel-I Basel-II
Risk Weighted Assets
(Rs. in crore) 128587 116619 104344 92181
Capital Funds (in percentage)
Tier-I 5.81 6.31 6.03 6.83
Tier-II 4.93 5.33 4.78 5.40
Capital Adequacy Ratio 10.74 11.64 10.81 12.23
7. NET PROFIT & DIVIDEND
The Bank earned Net Profit of Rs. 1252 crore for the financial year
2010-11. The Board of Directors are pleased to recommend a dividend @
25 per cent.
8. CHANGES IN THE BOARD DURING THE YEAR
During the year under review, the following changes took place in the
Board of Directors of the Bank:
. Shri Ramnath Pradeep has been appointed as CMD of Corporation Bank
w.e.f. September 1, 2010.
. Shri Arun Kaul has been appointed as CMD of UCO Bank w.e.f. September
1, 2010.
. Smt. V.R. Iyer has been appointed as Executive Director with effect
from September 1, 2010.
. Shri R.K. Dubey has been appointed as Executive Director with effect
from September 1, 2010.
. Shri M.K. Bhattacharya ceased to be a Director with effect from July
30, 2010.
. Shri Salim Gangadharan has been appointed as RBI Nominee Director
with effect from July 30, 2010.
. Shri M.S. Johar retired on January 1, 2011.
9. DIRECTORS RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2011;
. The applicable accounting standards have been followed along with
proper explanation relating to material departure, if any;
. The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India were consistently applied;
. Reasonable and prudent judgement and estimates were made so as to
give a true and fair view of the state of affairs of the Bank at the
end of the financial year and of the profit of the Bank for the year
ended March 31,2011;
. Proper and sufficient care was taken for the maintenance of adequate
accounting records in accordance with the provisions of the applicable
laws governing banks in India ; and
. The accounts have been prepared on a going concern basis.
10. CORPORATE GOVERNANCE
The Board of the Bank is committed to adapt Corporate Governance
practices in letter and spirit. The Bank has adopted well documented
system and practice on Corporate Governance.
11. ACKNOWLEDGEMENT
The Board of Directors places on record its gratitude to the Government
of India, Reserve Bank of India and the Security Exchange Board of
India for their valuable guidance and support. The Board acknowledges
with gratitude the unstinted support and faith of its customers and
shareholders. The Board wishes to place on record its appreciation of
the dedicated services and contribution made by members of staff for
the overall performance of the Bank.
For and on behalf of the Board of Directors
Place: Mumbai S. Sridhar
Date : May 30, 2011 Chairman and Managing Director
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