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Annual Report

For Year :
2021 2019 2018 2017 2016 2015 2014 2013 2012

Director’s Report

Your Bank''s Board of Directors is pleased to present the Report on its Business and Operations for the financial year ended March 31,2021.

The Financial Year (FY) 2020-21 was characterised by unprecedented challenges to lives and livelihood posed by the COVID-19 pandemic. The socio-economic consequences of the pandemic were more severe than initially anticipated due to the uncertainty regarding its path, duration and magnitude. This warranted policy response at an unprecedented scale from governments and central banks globally. The Indian economy also experienced pandemic-led fallout with widespread economic impact. The banking sector, like most sectors, encountered challenges and uncertainties caused due to the economic disruptions. However, deployment of timely and collaborative policy interventions by the Government of India (GoI) and the Reserve Bank of India (RBI) paved the way for gradual revival of the economic activities. The policy response was directed towards stabilising the economy and putting in place necessary enablers to kick-start the economy on a sustainable basis. This was evidenced by the improvement in

India''s economic performance in Q3 and Q4 of FY 2020-21 which saw positive Gross Domestic Product (GDP) growth of 0.5% and 1.6%, respectively. However, two consecutive quarters of decline in Q1 and Q2 of FY 2020-21 weighed down the overall growth performance with GDP registering a contraction of 7.3% in FY 2020-21. While the fiscal and monetary support extended by the policymakers aided in minimising the impact of the pandemic on key sectors, it was only in the second half of the year that there was an uptick in economic activity on the back of rolling back of restrictions. As the economy is yet to reach its potential growth trajectory, it is imperative to view the performance of your Bank in this context.

Financial Highlights

As on March 31,2021, your Bank''s aggregate deposits and advances touched '' 2,30,898 crore and '' 1,28,150 crore, respectively. Your Bank''s business highlights for the period under review are presented in Table 1.

Table 1: Key Financials

('' in crore)

Ason March 31, 2020

Ason March 31, 2021




Reserves & Surplus









Other Liabilities & Provisions



Total Liabilities



Cash & Balances with RBI



Balances with Banks & Money at Call & Short Notice









Fixed & Other Assets



Total Assets



For the period



Total Income



Total Expenses (other than provisions)



Provisions (other than tax)



Profit/ (Loss) Before Tax



Provision for Tax



Profit/ (Loss) After Tax



During the year under review, your Bank''s total income amounted to '' 24,557 crore, comprising interest income of '' 19,932 crore and other income of '' 4,625 crore. Interest expenses stood at '' 11,414 crore and operational expenses at '' 6,052 crore, accounting for total expenditure (excluding provisions and contingencies) of '' 17,466 crore.

Total provisioning of your Bank declined for the year due to reversal of provisioning for Non-Performing Assets (NPAs). The provisions include '' 2,395 crore towards provisions for NPAs, bad debts written-off and investments. The increase in Net Interest Income (NII), other income and reduction in

operating expenses and provisions enabled the Bank to post a net profit of '' 1,359 crore during FY 2020-21.

While the Earnings per Share (EPS) during the year was '' 1.30, the Book Value per Share (excluding intangible assets and Deferred Tax Asset (DTA) ) stood at '' 14.83 as at end-March 2021.

Given that the ‘second wave'' significantly increased the number of COVID-19 cases in India and as the outlook is likely to remain uncertain for a considerable duration, the Board of Directors of the Bank, at its meeting held on May 03, 2021, considered it prudent to not propose dividend for the financial year ended March 31,2021.

Report on the Performance and Financial Position of Subsidiaries and Joint Venture included in the Consolidated Financial Statement as on March 31,2021

Net Assets i.e. total assets

minus total liabilities

Share in profit or loss

Name of the Entity

As % of Consolidated Net Assets

Amount (in '' crore)

As % of Consolidated Profit or Loss

Amount (in '' crore)

Parent : IDBI Bank Ltd.






Indian :

1. IDBI Capital Markets & Securities Ltd.





2. IDBI Intech Ltd.





3. IDBI Asset Management Ltd.





4. IDBI MF Trustee Co. Ltd.





5. IDBI Trusteeship Services Ltd.





Foreign :





Minority Interest in all Subsidiaries





Associates (Investment as per the equity method)#


1. Biotech Consortium India Ltd.





2. National Securities Depository Ltd.





3. North Eastern Development Finance Corporation Ltd.





4. Pondicherry Industrial Promotion Development & Investment Corporation Ltd. ( PIPDICL)





Foreign :





Joint Ventures (as per proportionate consolidation/investment as per the equity method)


1. Ageas Federal Life Insurance Company Ltd.




















Net Total





Note: None of the above subsidiaries have any subsidiary.

# - The financials of four Associates viz., National Securities Depository Ltd.(26.10%), North Eastern Development Finance Corporation Ltd. (25%), Biotech Consortium India Ltd. (27.93%) and Pondicherry Industrial Promotion Development & Investment Corporation Ltd. (21.14%) are not considered for consolidation on account of non-receipt of Financial Statements for Q4 of FY 2020-21, impact of which on the Consolidated Financial Statements is not material. In case of Pondicherry Industrial Promotion Development & Investment Corporation Ltd., the investment in the said company has been written down to '' 1.

Material changes and commitments, if any, affecting financial position of IDBI Bank which have occurred during the end of financial year and the date of Board Report.

There were no material changes and commitments affecting the financial position of the Bank, which occurred between the end of the financial year of the Bank, i.e. March 31,2021 and the date of the Directors'' Report.

The details in respect of adequacy of internal financial controls with reference to the financial statements.

According to Section 143(3)(i) of the Companies Act 2013, with effect from FY 2015-16, the report of the Statutory Auditors should state whether the Bank has adequate Internal Financial Controls (IFCs) system in place and the operating effectiveness of such controls, in the context of the financial statements. IFCs as referred to in Section 143(3)(i) of the Companies Act relate to Internal Financial Controls Over Financial Reporting (IFCO-FR). The Bank’s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Bank’s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information, as required under the Companies Act, 2013, the Banking Regulation Act, 1949 and the guidelines issued by the RBI.

Your Bank has put in place an IFCO-FR Framework for evaluation of the existing internal financial controls system and appointed a Consultant for validating the compliances with respect to the documentation, certification, reporting process of the controls across all business verticals/ departments and ascertaining the adequacy and effectiveness of the controls in the Bank in all material respects with respect to financial reporting.

During FY 2020-21, the said Consultant has submitted the Internal Compliance Certificate for the quarters ended June 2020 to December 2020 after carrying out the testing and validation of all the underlying processes as per the Bank’s IFCO-FR framework. The Consultant reviewed the compliance of 570 Risk Control Matrices as on December 31, 2020 and reported five open issues for further compliance. The departments concerned are working closely for addressing the open issues.

Details of significant changes (i.e. change of 25% or more as compared to the immediate previous financial year) in key financial ratios, along with a detailed explanation thereof, including:

Particulars 2019-20



Net Interest 2.61% Margin (%)


Interest Income increased due to increase in interest on income tax refund by '' 943 crore to '' 1,313 crore for FY 2020-21 as against '' 370 crore for FY 2019-20 and decrease in interest expenses by '' 2,433 crore.

Return on -4.26% Assets


Net profit for FY 2020-21 is '' 1,359 crore as compared to loss of '' 12,887 crore in FY 2019-20.

Net NPA% to 4.19% Net Advances


Net NPA decreased by '' 2,920 crore.

Debt to Equity 3.16 ratio


Borrowings made in India and outside India significantly decreased by '' 20,841 crore and Net Worth improved by '' 4,319 crore.

Capital Adequacy

In adherence to the Pillar 1 guidelines of the RBI under Basel III framework, your Bank computes the regulatory capital requirement for credit, market and operational risks on a quarterly basis. As per the Basel guidelines, banks in India are mandated to maintain Capital Conservation Buffer (CCB) in a phased manner commencing from March 31, 2016. In line with the RBI’s notification dated September 29, 2020 whereby the transitional arrangements of Basel III capital regulations were reviewed, the applicable CCB for March 31, 2021 was stipulated at 1.875%. Accordingly, the minimum regulatory requirement of ‘Total Capital CCB'' was 10.875% as on March 31,2021. Your Bank’s ‘Total Capital CCB’ ratio was 15.59% as on March 31, 2021. Similarly, your Bank’s ‘Common Equity Tier 1 (CET1) CCB‘ ratio was 13.06% as against the regulatory requirement of 7.375%. Your Bank’s ‘Tier 1 CCB’ ratio stood at 13.06% as on March 31, 2021 as against the regulatory requirement of 8.875%. Your Bank’s Leverage Ratio as on March 31,2021 was 6.08% against the applicable minimum regulatory requirement of 3.50%.

Your Bank has a Board-approved policy on Internal Capital Adequacy Assessment Process (ICAAP) in line with the Pillar 2 norms of the Basel III framework. This policy enables your

Bank to internally assess and quantify those risks which are not covered under Pillar 1 as well as to develop appropriate strategies to manage and mitigate risks under normal and stressed conditions.

Your Bank has also put in place a comprehensive stress testing framework in line with the RBI guidelines. The stress testing framework enables your Bank to assess its performance under exceptional but plausible events and facilitates appropriate proactive strategies to meet unforeseen contingencies. The framework also includes scenario analysis and reverse stress testing. Scenario analysis enables the Bank to understand the impact of adverse macroeconomic indicators on the capital and profitability of the Bank. Your Bank also separately created scenarios to make a preliminary assessment of the detrimental impact of the COVID-19 pandemic on the various sectors to which the Bank has exposure, which in turn will adversely affect the Bank''s profitability. The mechanism of reverse stress testing has been added to the framework to find the level of stress which may adversely impact the capital to take it to a pre-determined floor level.

Your Bank has adopted a Disclosure Policy in accordance with the Pillar 3 requirements under the Basel norms. Accordingly, disclosures as at the end of each quarter are hosted on your Bank''s website, thereby exhibiting high degree of transparency.

Your Bank follows the Standardised Approach under Credit Risk for computation of capital charge. Your Bank follows Basic Indicator Approach (BIA) to compute regulatory capital charge for Operational Risk. A comprehensive set of Key Risk Indicators (KRIs) and Risk & Control Self-Assessment (RCSA) framework have been rolled out across different business segments for ensuring effective control mechanism. For Market Risk, your Bank uses Standardised Measurement Method (SMM) to compute regulatory capital requirements.

Qualified Institutional Placement (QIP)

Your Bank had raised Equity Capital amounting to '' 1,435.18 crore through the Qualified Institutional Placement (QIP) route in Q3 of FY 2020-21. The Bank raised capital for the first time after a gap of 25 years since its maiden Initial Public Offering (IPO) in 1995. Under this QIP, 44 Qualified Institutional Buyers (QIB) participated and were issued equity shares of 37,18,08,177 (nos.) at '' 10/- each fully paid up with a share premium of '' 28.60 per share aggregating to '' 1,435.18 crore.

Business Strategy

FY 2020-21 commenced in the midst of the first phase of the nationwide lockdown imposed by the GoI as a preventive measure to mitigate the spread of the coronavirus. The immediate imperative before the Bank as a provider of essential service was to ensure uninterrupted banking services without compromising on the safety measures

for both customers and employees. Apart from ensuring that most branches were functional with proper COVID-19 protocols for providing in-person servicing, where essential, your Bank redirected key business processing activities to alternate locations within the country for uninterrupted and time-bound processing of customer requests. Furthermore, customers were also encouraged to use digital and other alternate channels to carry out their banking transactions. During the year, your Bank continued to pursue a risk-calibrated business strategy to ensure stable and profitable growth, especially in view of the challenging operating environment. In tandem with its overall business strategy of re-orienting itself as a retail-centric bank, your Bank augmented its retail asset book with increased focus on Structured Retail Assets (SRA), Agri and MSME loan portfolio, while simultaneously limiting its corporate exposure. On the liability side, your Bank continued to boost the share of its low-cost deposit base i.e. CASA deposits to the total deposits while reducing reliance on bulk term deposits. Consequent upon the majority stake acquisition by the Life Insurance Corporation of India (LIC), the Bank has been accelerating its efforts to realise the full potential arising out of business synergies with the LIC. Apart from augmenting income, the Bank also continued to make concerted efforts to rationalise its expenses in order to ensure a robust bottom-line.

Recognising the importance of asset quality in ensuring a profitable and sustained turnaround, your Bank has been aggressively pursuing recovery and upgradation of its delinquent asset portfolio through legal and regulatory routes in a bid to resolve the existing stress in its asset book. Your Bank has also set up dedicated teams to drive recovery in corporate and retail portfolio. Additionally, as a proactive measure, your Bank has also strengthened its credit monitoring mechanism in order to closely monitor the onset of stress in its portfolio and to prevent slippages in asset quality. These initiatives have aided in reducing incipient stress, containing slippage and improving credit quality of your Bank.

Your Bank has also undertaken measures to strengthen its risk management and corporate governance framework. In addition to this, your Bank also continued to promote a strong compliance culture by adhering to key laws, rules, regulations, internal policies & procedures and various codes of conduct to maintain its reputation and win the trust of customers, investors and regulators.

Your Bank has always been committed towards its vision of emerging as a trusted and preferred bank in India''s banking space. Towards this end, your Bank has adopted a customercentric policy to focus on enhancing customer delight and experience. Your Bank has also been leveraging its data analytics capabilities to introduce a wide-range of customised products and services to cater to the emerging customer preferences. Furthermore, your Bank has continued to invest

in technological innovation and up-gradation in order to ensure better customer service and experience. Your Bank has also remained committed towards the GoI''s Enhanced Access and Service Excellence (EASE) to ensure ease of banking.

These strategic measures were supplemented by a number of structural and systemic improvements which paved the way for a smooth and successful turnaround process.

Key Business Initiatives

Your Bank, as a customer-centric bank, offers an entire gamut of banking and investment products and services to cater to the emerging financial requirements of its customers. In order to minimise the pandemic-led disruptions, your Bank has been ramping up its digital capabilities by embracing technological innovation and also by upgrading and augmenting its software/ hardware capabilities. While the Bank continued to serve its customers through its network of 1,886 branches, 3,388 ATMs and 58 e-lounges, the strengthening of its digital infrastructure enabled your Bank to offer a number of digital and contactless solutions to its customers in a safe and secure manner, thereby ensuring last-mile connectivity to its customers. This proactive measure by your Bank also enabled it to remain connected with its customers and provide uninterrupted and seamless banking services without diluting the safety measures and social-distancing norms.

In response to the evolving customer preferences and requirements, your Bank introduced a number of innovative products and services, viz. WhatsApp banking, online account opening facility through mobile app - ‘I Quick'', Account Opening/ Re-KYC through Video KYC (VAO), virtual debit card, doorstep banking facility for senior citizens and differently-abled persons, state-of-the-art Loan Processing System for Agri and MSME loans, among others, to ensure ease of banking and customer delight.

Your Bank continued to remain committed towards supporting the priority sectors by significantly contributing to Priority Sector Lending (PSL), thereby also adhering to the RBI''s mandate. Your Bank is proactively promoting the national agenda of financial inclusion with interventions in three key areas, viz. ensuring access to appropriate financial products and services by the vulnerable sections of the society at an affordable cost in a fair and transparent manner, making extensive use of technology to connect with customers and enhancing customer awareness through financial literacy. Your Bank has also been engaging its network of Business Correspondents (BCs)/ Business Facilitators (BFs) in an effort to increase penetration in rural and semi-urban areas. This has aided in furthering the financial inclusion agenda as also providing an added impetus to its PSL business.

Your Bank has been leveraging the business synergies with

the LIC by offering a wide array of innovative, specialised/ customised products and services to the employees, agents and subsidiaries of the LIC for meeting their banking and investment requirements.

Your Bank offers a wide range of Trade Finance (TF) products and services to its large corporate, mid corporate and retail customers. As a part of its transformation plan, your Bank has transitioned to a centralised trade processing system, which operates on a hub-and-spoke model at three major metro centres, viz. Mumbai, Chennai and Delhi and facilitates standardised processing, efficient communication and faster turnaround time. Your Bank, as an Authorised Dealer (AD) Category I bank, has 39 dedicated TF centres, which are authorised to handle all types of foreign exchange transactions.

Your Bank acts as an agent for Central Government and State Governments to manage their receipts and payments. Your Bank is authorised to collect Central Government Taxes, State Receipts in select States and Union Territories. Your Bank is also authorised by the Government to offer Small Savings Schemes through its branches and disburse Central Civil, Defence and Railway Pensions. Your Bank also provides 24x7 internet banking facilities for tax payments. Your Bank has enabled online collection of Employees'' Provident Fund Organisation (EPFO) and Employees'' State Insurance Corporation (ESIC) dues.

Your Bank is committed towards providing state-of-the-art Cash Management Services (CMS) to help corporates accelerate their collections, handle their bulk payments efficiently and smoothen their flow of funds. Your Bank offers a comprehensive range of CMS collections, payment and transaction banking solutions to suit the needs of corporates so that they have a complete control of their cash position.

Your Bank is setting up a dedicated Financial Institutions Group (FIG) to focus on domestic and foreign Financial Institutions (FIs) for offering various products/ services of the Bank. This group shall act as a coverage group for offering products/ services related to trade, cash management services, payments, treasury, forex, derivatives, money market & capital markets and retail banking. The FIG shall also engage with the FIs for increasing the breadth of coverage and deepen the FI business.

To address the economic fallout of the pandemic, your Bank undertook a number of measures such as providing moratorium to all the eligible customers, extending additional funding by way of Working Capital Term loan to MSMEs/ business enterprises and individual borrowers, launching a Credit Guarantee Scheme for Subordinated Debt (CGSSD) to provide personal loans to the promoters of the stressed MSMEs, introducing Loan Resolution Plan for borrowers having financial stress on account of COVID-19, among other measures, to help its customers.

Your Bank has a dedicated Centre of Excellence for Data Analytics which works across business areas on projects related to business analytics, decision strategies, forecasting models, machine learning and rule engines. Your Bank continues to leverage technology and analytics for deeper insights into customer on-boarding, micro-segmentation of customers, behavioural pattern, smooth and frictionless transaction, spending behaviour, risk portfolio etc. Data analytics and Machine Learning (ML) have enabled your Bank to get better at acquiring, serving and retaining customers by offering analytics-driven next best products. Your Bank is leveraging these technologies to maximise its digital impact and make its digital campaigns more intelligent, sharp and cost-efficient.

The detailed description of the Bank''s initiatives undertaken during the year is outlined in the Management Discussion and Analysis section of the Annual Report.

Impact of the COVID-19 pandemic on the Bank’s business

The SARS-CoV2 virus responsible for the COVID-19 has resulted in a significant decline and volatility in global and Indian markets and economic activity. Implementation of lockdown and extensions has resulted in disruptions of business and common life. The Bank is gearing itself on all fronts to meet the challenges imposed by the COVID-19 pandemic including the likelihood of rise in customer defaults and an increase in provisioning requirements. The second wave of the COVID-19 from mid-March 2021 is again threatening to disrupt the economic activities in many states, where the pandemic is more severe with possibilities of lockdown getting extended in case the situation does not improve. The Bank''s capital and liquidity position is strong and would continue to be the focus area for the Bank during this period.

Board of Directors

Your Bank''s Board of Directors is broad-based and its constitution is governed by the provisions of the Banking Regulation Act, 1949, the Companies Act, 2013, the Articles of Association of the Bank and the requirements of corporate governance, as envisaged in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). The Board functions directly as well as through various Board level committees constituted to provide focussed governance in the important functional areas of the Bank. As per the Articles of Association, the Board of Directors shall not be less than three and more than fifteen members consisting of the Chairman of the LIC as NonExecutive Chairman of the Bank, MD & CEO, two DMDs, one Official Nominee Director of the LIC, two Nominee Directors

of GoI and eight Independent Directors including one Woman Independent Director.

As on March 31, 2021, the Board comprised fourteen Directors, viz., Shri M. R. Kumar, Non-Executive Chairman, Shri Rakesh Sharma, MD & CEO, Shri Samuel Joseph Jebaraj and Shri Suresh Khatanhar, DMDs, as Whole Time Directors; Ms. Meera Swarup and Shri Anshuman Sharma, as Government Nominee Directors and Shri Rajesh Kandwal, LIC Nominee Director, as Non-Executive Directors; Shri Gyan Prakash Joshi, Shri Bhuwanchandra B. Joshi, Shri Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri Sanjay Gokuldas Kallapur and Smt. P. V. Bharathi as Independent Directors. The present strength of fourteen Directors on the Board meets the requirement provided under Article 114(a) of the Articles of Association.

Apex Committees

The Board has a total of thirteen committees to oversee various functional areas of your Bank''s business and operations. The Board committees include Audit Committee of the Board, Executive Committee, Nomination & Remuneration Committee, Stakeholders'' Relationship Committee, HR Steering Committee, Frauds Monitoring Committee, Recovery Review Committee, Risk Management Committee, Corporate Social Responsibility Committee, Non-Cooperative Borrowers'' Review Committee, Customer Service Committee, Wilful Defaulters'' Review Committee and Information Technology Strategy Committee.

Corporate Governance

Your Bank is committed to adopt the best corporate governance practices. It believes that effective corporate governance is not just a requirement for regulatory compliance, but also a facilitator for excellence in governance including enhancement of stakeholders'' value. The details of your Bank''s corporate governance practices are given in this Annual Report as a separate section under Corporate Governance Report.

Business Responsibility Report

Securities and Exchange Board of India (SEBI), vide Gazette Notification dated December 26, 2019, amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As per the amendment, the Annual Report of the top one thousand listed entities based on market capitalisation must include Business Responsibility Report (BRR). The BR Report should describe initiatives taken by the listed entity from an environmental, social and governance perspective. The Bank''s Business Responsibility Report has been hosted on the website of the Bank (

Statement under Section 134 of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

There were no personnel in your Bank''s service, during the financial year under review, who received remuneration of over '' 1.02 crore annually. Besides, there were no personnel

in the service of the Bank for a part of the year who received remuneration in excess of '' 8.50 lakh per month. Further, there were no personnel employed throughout the financial year or part thereof who was in receipt of remuneration at a rate, which in the aggregate, was in excess of that drawn by Managing Director & CEO or Deputy Managing Director of the Bank and who held by himself or along with his spouse and dependent children, not less than 2% of the equity shares of the Bank.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

a) Conservation of Energy

Your Bank has taken the following measures towards

conservation of energy:

• Conventional light fixtures have been replaced with energy efficient LED light fixtures/ lamps/ tubes to save power consumption at the Bank''s Head Office building at Mumbai as well as all other office and residential buildings of the Bank.

• The new signages of the Bank’s branches are being fitted with LED lights in place of conventional power consuming light fixtures.

• For all new or refurbished branches, LED lights are being used in place of conventional fluorescent/ PL lamps.

• Solar panels have been installed for common lighting, pumps etc. in the Bank''s new office buildings as well as residential buildings developed by NBCC (India) Ltd. at New Delhi and new residential buildings at the Jawaharlal Nehru Institute of Banking and Finance (JNIBF),

Hyderabad. The Bank has also been considering LED light fixtures for furnishing of new office premises.

• Water harvesting facility has also been provided in new residential buildings constructed at the JNIBF, Hyderabad.

b) Technology Absorption

Your Bank accords top priority to technology-led banking. Your Bank believes that digital is the way forward and tech-led initiatives would empower its customers as well as its business functions. It would also take the Bank forward in addressing the challenges of the future. Your Bank adopted a few noteworthy technology-driven reforms such as making official e-mail available on-the-go to the employees and providing Virtual Private Network (VPN)/ Virtual Desktop Infrastructure (VDI) based access to the Bank''s systems, adapting to e-tendering and video conference-based bidding procedures, up-gradation of the Security Operations Centre (SOC) at the Data Centre (DC) location and setup of a SOC at the Disaster Recovery (DR) location in Chennai, implementation of a Domain-based Message Authentication, Reporting and Conformance (DMARC) analytics platform,

implementation of Honey Pot solution, implementation of an Enterprise Network Monitoring Solution (ENMS), implementation of satellite/ GPS based Network Time Protocol (NTP) solution and upgradation of the Bank''s ATM switch software version, introduction of Video KYC Account Opening (VAO), I-Quick mobile application for account opening, roll-out of WhatsApp Banking facility, launch of a fully digitised Loan Processing System (LPS) for various MSME and Agri loan products and implementation of Automated Data Flow (ADF) application. Under the Enterprise Data Warehouse project (EDW), your Bank has built various analytical/ predictive models for Non-Performing Asset (NPA) prediction for various loan products, churn prediction for portfolio of Agri/ MSME, current/ saving account, cross-sell/ up-sell model, customer profiling and segmentation, etc.

Your Bank is in advanced stage of implementation of many technology-based solutions and enhancements which include, implementation of Voice Onetime Password (OTP) and software token-based authentication as an alternate to SMS-based OTP, implementation of an Application Performance Monitoring solution, implementing Application Programming Interface Management (APIM) solution, implementation of chat bot facility for 24x7 customer assistance and exploring the usage of new age security technologies such as Security Orchestration, Automation & Response (SOAR), Network Behaviour Anomaly Detection (NBAD), Packet Capture (PCAP), User & Entity Behaviour Analytics (UEBA) & Threat Intelligence Platform (TIP) for building a Next Generation SOC at both DC & DR locations.

Details of other initiatives taken in the Information Technology space have been provided in the Management Discussion and Analysis section of this Annual Report.

c) Foreign Exchange Earnings and Outgo

During the year, the total foreign exchange earned by the Bank was '' 51.36 crore (excluding foreign currency cash flows in derivatives and foreign currency exchange transactions) and the total foreign exchange outgo was '' 36.23 crore towards the operating and capital expenditure requirements.

Exit from the RBI’s Prompt Corrective Action (PCA) framework

Your Bank has provided a commitment to the RBI that it would comply with the norms of minimum regulatory capital, Net Non-Performing Asset (NPA) and Leverage ratio on an on-going basis and has apprised the RBI of the structural and systemic improvements that it has put in place which would help the Bank in continuing to meet these commitments. Based on the commitment and the Bank''s reported Capital To Risk Weighted Asset Ratio (CRAR) at 14.47%, Common Equity Tier 1 (CET1) at 12.22%, Net NPA at 1.94% and Leverage Ratio at 5.71% as at end-December 2020, which were not in breach of the PCA framework, the RBI, vide its letter dated March 10, 2021, has decided to lift the restrictions imposed on the Bank under the PCA framework subject to certain conditions and continuous monitoring.

Directors’ Responsibility Statement

The Board of Directors, hereby, declares and confirms that:

a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent 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 and loss of the Bank for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

e. The Directors had laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively; and

f. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


Your Bank''s Board of Directors is sincerely grateful to the GoI, the RBI, all other statutory/ regulatory authorities and the LIC for their valuable cooperation and guidance. The Board also acknowledges, with gratitude, the co-operation and support received from various State Governments and other banks/ financial institutions. The Board thanks various

multilateral institutions and international banks/ institutions for their support. The Board takes this opportunity to put on record its deep sense of gratitude to its loyal shareholders and customers for extending their support during the year, and looks forward to their continued association in the years ahead. The Board appreciates the sincere and devoted services rendered by its entire staff and highly values their commitment towards the Bank.

[Suresh Khatanhar] [Samuel Joseph Jebaraj] [Rakesh Sharma]

Deputy Managing Director Deputy Managing Director Managing Director & CEO

Place: Mumbai Date: May 03, 2021

Director’s Report