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The Board of Directors of Odisha Gramya Bank have the pleasure in presenting the 8th Annual Report of the Bank along with the Audited Balance Sheet as on 31st March, 2020 and Profit & Loss Account for the Financial Year 2019-20, in terms of Section 20(1) of the Regional Rural Banks Act 1976. 1. Brief Introduction: Odisha Gramya Bank was established on 7th January 2013 with the amalgamation of Neelachal Gramya Bank, Kalinga Gramya Bank and Baitarani Gramya Bank as per Notification No. F.1/1/2012- RRB dated 07.01.2013 issued under sub-section (1) of Section 23A of Regional Rural Banks Act 1976 (21 of 1976) by the Ministry of Finance, Department of Financial Services, Government of India. The share capital of the Bank is contributed by Government of India, Sponsor Bank (Indian Overseas Bank) and Government of Odisha in the ratio of 50:35:15 respectively. Odisha Gramya Bank is a scheduled Bank and included in the Second schedule to the Reserve Bank of India Act, 1934 as per RBI circular No. RBI/2014-15/474 RPCD. CO. RRB. BC. No/81/ 03.05. 100 /2013-14 dated 29.01.2014 and Notification No RPCD. CO RRB. No. 46/03.05.100 / 2013-14 Dated 22nd October 2013 published in the extra-ordinary Gazette of India (Part III-Section 4) on 5th December 2013. The Bank is authorised to undertake all types of banking activities under Section 5 (b) of Banking Regulation Act 1949. Accordingly, the Bank provides all banking services in its command area covering 13 districts of Odisha namely Angul, Balasore, Bhadrak, Cuttack, Dhenkanal, Jagatsinghpur, Jajpur, Kendrapara, Khurda, Keonjhar, Mayurbhanj, Nayagarh and Puri. 2. Branch Network: The Bank has 549 branches in 13 districts under its command area to cater to the needs of all sections of population in rural, semi-urban and urban areas as detailed below. The Head Office of the Bank is situated at Bhubaneswar. The Bank has also 9 Regional Offices located at Balasore, Baripada, Chandikhole, Cuttack, Dhenkanal, Jashipur, Keonjhar, Khurda and Pipli.
Category of Branches / Other Banking Outlets Name of district Semi- Total Satellite Extension Total Banking Urban Rural Urban Branch Branch Counters Outlets Angul - 4 28 32 - - 32 Balasore - 6 47 53 - - 53 Bhadrak - 2 28 30 - - 30 Cuttack 7 3 39 49 - - 49
Dhenkanal 2 28 30 - - 30 Jagatsinghpur - 2 26 28 - - 28
Jajpur - 2 38 40 - - 40 Kendrapara - 4 25 29 - - 29 Khurda 16 4 35 55 - - 55
Keonjhar - 7 41 48 - - 48
Mayurbhanj - 10 68 78 - - 78 Nayagarh - 2 24 26 - - 26 Puri 5 2 44 51 - - 51 Total 28 50 471 549 - - 549
Odisha Gramya Bank Directors’ Report for FY 2018-19 Page 1 of 50
3. Capital: A. Share Capital: As on 31.03.2020, the Authorized Capital of the Bank is `20000000 thousand and Paid-up Capital is `6764086 thousand contributed by Government of India, Sponsor Bank (Indian Overseas Bank) and Government of Odisha in the ratio of 50:35:15 respectively. (` in ‘000)
Sl. Name of Share Holder No of shares Share capital No. 1. Govt. of India 338204260 3382043 2. Indian Overseas Bank 236743007 2367430 3. Govt. of Odisha 101461298 1014613 Total 676408565 6764086 B. Share Capital Deposit: Government of India, vide their letter no. F.No. 3/8/2010-RRB(Vol.V) dated 30th March, 2020 has approved recapitalisation assistance of `116.12 crore to maintain minimum Capital to Risk Weighted Assets Ratio (CRAR). Government of India and Indian Overseas Bank have released their proportionate share. Government of Odisha has released its share (15%) of `10.33 crore on 04.05.2020. Bank has already `7.09 crore Share Capital Deposit of Government of Odisha released on 12.06.2017. (` in ‘000) Additional share capital Additional share capital Sl. Name of Share Holder sanctioned as on received as on No. 31/03/2020 31/03/2020 1. Govt. of India 580600 580600 2. Indian Overseas Bank 406400 406400 3. Govt. of Odisha 174200 70900 Total 1161200 1057900
4. Deposits:
Deposits of the Bank stood at `125888754 thousand registering a growth of 11.44% over the last financial year. The CASA constitutes 46.23% of total deposits. The category wise break-up of deposits for last two years is as under: (` in ‘000) As on 31/03/2020 As on 31/03/2019 Type of Deposit No. of Accounts Amount No. of Amount Accounts Current Deposits 11365 983789 10914 890441 Savings Bank Deposits 4998922 57215576 4694120 49166644 Term Deposits 706535 67689389 711847 62907010 Total Deposits 5716822 125888754 5416881 112964095 % of Low Cost deposits 46.23 44.31 Average cost of deposits (%) 5.26 5.47 Average deposits per branch 229306 205763 Average deposits per 52917 47745 employee Average deposits per account 22.02 20.85
On the basis of score based performance, Bank has been empanelled by Government of Odisha as one of the eligible Banks for handling business and deposits of State Govt., Public Sector Undertakings (SPSUs) and State Level Autonomous Societies (SLASs). 5. Borrowings: (I) Due to high NPAs, Bank is not eligible to avail refinance from NABARD. However, Bank has repaid the refinance availed earlier on due dates to NABARD without any default. The details of scheme- wise refinance limits sanctioned, amount availed and amount repaid during the year and outstanding thereof as on 31.03.2020 are as under: A. From NABARD (` in ‘000) Outstanding Limit Utilization Repayment Outstanding as on sanctioned made Category made during as on 31/03/2019 during the during the the year 31/03/2020 year year S.T. (SAO) - - - - - S.T. (OSAO) - - - - - M.T. (Non-Sch.) 9580 - - 9580 - M.T. (Sch) 32241 - - 25324 6917 Total 41821 - - 34904 6917 B. From Sponsor: (` in ‘000) Limit Utilization Repayment Outstanding as sanctioned made Outstanding as Category made during on 31/03/2019 during the during the on 31/03/2020 the year year year S.T. (SAO) - 2000000 1559590 1559590 - S.T. (OSAO) - - - - - M.T. (Non-Sch.) - - - - - Total - 2000000 1559590 1559590 -
C. From Other Bank: (` in ‘000) Limit Utilization Repayment Outstanding as sanctioned made Outstanding as Category made during on 31/03/2019 during the during the on 31/03/2020 the year year year M.T. (Non-Sch.) 1025 225000 64315 64315 - Total 1025 225000 64315 64315 -
D. From NSTFDC: (` in ‘000) Limit Utilization Repayment Outstanding as sanctioned made Outstanding as Category made during on 31/03/2019 during the during the on 31/03/2020 the year year year S.T. (SAO) - 190000 190000 - 190000
(II) Cost of borrowing is 7.89 % as on 31.03.2020 vis– a-vis 5.56% as on 31.03.2019.
6. Deposit Insurance Bank has paid up- to-date premium to Deposit Insurance and Credit Guarantee Corporation (DICGC) under Deposit Insurance Scheme, which covers / insures all deposits up to `5.00 lac per depositor. 7. Cash and Balance with Banks: Bank has an established system of cash and bank balance management. Details of the position for last two years are furnished below. (` in ‘000) Particulars As on 31/03/2020 As on 31/03/2019 Cash held by the Bank 630193 409058
*Average Cash held 483595 484041
*Average Deposits 119301282 108077586 Average cash as % to average deposits 0.40 0.45 Balance with RBI in Current Account 3606087 4979273 Balance in Current Account with other Banks 1982137 712648 *Average indicates the average of month end outstanding.
8. Investments:
SLR and Non- SLR Investment of the Bank as on 31st March 2020 stood at `74538707 thousand. The investment pattern as on 31st March 2020 and 31st March 2019 are as follows. The average yield on investment is 6.98%. (` in ‘000) Outstanding as on Outstanding as on Category 31/03/2020 31/03/2019
SLR Investment 70957635 61679150 Out of which Govt. & other approved securities 70957635 61679150 Non-SLR Investment 100000 285000 Term deposit with other Banks 3481072 2877081 Total Investments 74538707 64841231
The investment portfolio of the Bank mainly comprised of Govt. of India Securities, State Development Loan, Treasury Bills, NABARD Term Money Borrowings and Term Deposits with Banks.
9. Loans and Advances: The outstanding loans and advances as on 31/03/2020 stood at `51217555 thousand registering a growth of 4.97 % over the previous year. Sector wise details of outstanding are as under: (` in ‘000) Outstanding as on Outstanding as on Sector 31/03/2020 31/03/2019 ST Crop/ KCC including Jewel Loan (Ag ) 13520277 12080339 Agrl. Term Loans 2636010 3013801 Agrl. Allied Activities 3461159 2751268 Total Agriculture 19617446 17845408 Rural Artisans/SMEs 1847657 1745521 Others P.S. Advances 23120190 22529727 A. Total Priority Sector Advances 44585293 42120656 B. Total Non-priority Sector Advances 6632262 6671479 Total Advances (A+B) 51217555 48792135 Percentage of Priority Sector Advances 87.05 86.33 CD Ratio (%) 40.68 43.19
Loans granted under SHG and other government sponsored schemes are furnished below: (` in ‘000) Schemes Disbursement during the FY 2019-20 Outstanding as on 31/03/2020
NRLM 6237347 10514631
OSFDC 14984 101261
10. Loans disbursed during the year: During the financial year, Bank has disbursed `22809961 thousand as against the projection of `24000000 thousand. Sector wise position of disbursements is furnished below. (` in ‘000) Sector Projection Achievement % of Of which NTG % of NTG achievement disbursement Disbursement ST Crop /KCC/ JL (Ag) 6000000 6172572 102.88 673540 10.91 Agril. Term Loans 500000 72952 14.59 23153 31.74 Agril Allied Activities 1000000 517010 51.70 166801 32.26 Total Agriculture Loan 7500000 6762534 90.17 863494 12.77 Rural Artisans/SMEs 1500000 1293038 86.20 44876 3.47 Other Priority Sector 10000000 9930870 99.31 2164511 21.80 A. Total Priority Sector Advances 19000000 17986442 94.67 3072881 17.08 B. Total Non-Priority Sector Advances 5000000 4823519 96.47 2585575 53.60 Total Disbursement (A+B) 24000000 22809961 95.04 5658456 24.81
(a) Kisan Credit Cards: The major population in the command area of the Bank depends on agricultural activities for their livelihood. Bank has therefore, a thrust on development of agriculture and hence implemented OGBKCC scheme. During the year 2019-20, 12387 fresh KCCs have been sanctioned involving an amount of `641074 thousand. The total outstanding under KCC as on 31/03/20 is `10633852 thousand. (b) Self Help Group: Financing Self Help Groups (SHGs) is one of the thrust areas of the Bank. During the financial year, 74695 SHGs have been financed by the Bank with a credit flow of `6237347 thousand. As on 31.03.2020, total outstanding under SHG finance is `10514631 thousand against 92702 accounts. Cumulatively, the Bank has so far credit linked to 358313 SHGs. During the year 2019-20, Bank has surpassed the SHG/NRLM linkage target allotted by Odisha Livelihoods Mission.
The Govt. of Odisha as well as Govt. of India, Ministry of Rural Development have appreciated the performance of Bank under SHG/NRLM linkage. Odisha Livelihoods Mission (OLM) felicitated the Bank for outstanding achievement. Bank has received Award of Excellence being Best Performing Bank in implementation of Mission Shakti Loans of Govt. of Odisha for the year 2019-20 and National Award for SHG Bank Linkage -2019-20 from Ministry of Rural Development, Govt. of India. 11. Income Recognition and Asset Classification norms: a) Asset Classification: As per RBI guidelines, assets of the Bank are classified and required provisions are made. The classification of assets and provisions made for the year under reference are as follows: (` in ‘000) Outstanding Provision Outstanding Provision Category as on as on as on as on 31/03/2020 31/03/2020 31/03/2019 31/03/2019 A Standard Assets 37858694 132605 36438326 110123 B Sub - Standard Assets 3046561 304656 2647525 264752 C Doubtful Assets 10213368 6830661 9601940 4327560 D Loss Assets 98932 98932 104344 104344 E Total NPA (B+C+D) 13358861 7234249 12353809 4696656 F Total Assets (A+E) 51217555 7366854 48792135 4806779
b) Interest Derecognized: An interest amount of ` 35681 thousand is derecognized during the year 2019-20. c) Provisions: The Bank has made adequate provisions for the NPAs and standard assets as per Income Recognition and Asset Classification norms. Details of such provisions are as under: (` in ‘000) Outstanding Outstanding Schemes as on 31/03/2020 as on 31/03/2019 Standard Assets 132605 110123 Non-Performing Assets 7234249 4696656 Investment - 802351 Other Provisions: 255966 305306 Fraud 13134 12981 Robbery/Theft 66855 67879 Reconciliation 1291 1291 Ex-Gratia 15144 15144 Income Tax 150728 150728 Advance Income Tax 7700 7700 TDS Receivable - 48469 Suspense 1114 1114
d) NPA Movement: (` in ‘000) Current Year Previous Year Category (2019-20) (2018-19) NPA at the beginning of the year (A) 12353809 10467494 Additions to NPA during the year (B) 6806001 5171419 Recovery against NPAs during the year (C) 5800949 3285104 NPA at the end of the year (A+B-C) 13358861 12353809 Net NPA (NPAs net of provision) 6124612 7657153 Net Advances (Gross Advance - Provision on NPA) 43983306 44095479 Net NPA as % of Net advance 13.92 17.36 Gross NPA (%) 26.08 25.32
e) Recovery of Loans: The Bank has formulated recovery policy with due approval from its Board. Mega recovery camps were organized at all Branches during the year for recovery of NPA. SARFAESI action, seizure of hypothecated vehicles were taken up in strategic manner against chronic defaulters. Recovery through Bank’s OTS Scheme and National Lok adalat was also effected in deserving cases. Sector wise Demand Collection Balance (DCB) position as on 30.06.2019 is furnished below. (` In ‘000) Sector Farm Sector Non-Farm Sector Total Demand 9824550 19229273 29053823 Collection 6602246 14915281 21517527 Balance Overdue 3222304 4313992 7536296 Recovery Percentage 67.20 77.57 74.06
Age-wise and sector wise classification of overdue loans as on 30/06/2019 is as follows: (` In ‘000) Category Less than 1 yr 1-2 yrs 2-3 yrs 3-5 yrs 5-8 yrs Over 8 Total yrs Farm Sector No. of 21181 14213 12688 14190 10034 5008 77314 Accounts Amount 1003535 500919 505377 599534 321119 151890 3082374 Non-Farm Sector No. of 24109 21113 22815 19048 20313 9329 116727 Accounts Amount 1210774 777123 711610 860483 497077 396856 4453923 Total No. of 45290 35326 35503 33238 30347 14337 194041 Accounts Amount 2214309 1278042 1216987 1460017 818196 548746 7536297
f) Risk Fund: No such fund has been created till now.
g) Pradhan Mantri Fasal Bima Yojana (PMFBY) :- All the eligible loanee farmers and interested non-loanee farmers are being covered under the Pradhan Mantri Fasal Bima Yojana (PMFBY). The particulars of premium paid and claims settled under the scheme during the reporting year are given below: (` in ‘000) Loanee Farmers Non-Loanee Farmers A/c Amt A/c Amt Premium paid 76337 44295 76 94 Claims settled - - - -
12. CERSAI- All equitable mortgages eligible for addition of security interest have been registered with CERSAI as on 31.03.2020. During the reporting year, 483 equitable mortgages have been registered with CERSAI.
13. Write Off of Loans: (` in ‘000) Write off Yr. 2019-20 Yr. 2018-19 Number of Accounts 16119 8714 Amount 307699 231637
14. Income Earned: (` in ‘000) Income Yr. 2019-20 Yr. 2018-19 Income earned from Advances 3838033 3887068 Income earned from Investments 4562332 4383823 Income earned from Inter Bank Deposits 306917 172127 Income earned from others 34 38 Income earned from Non-Fund business 442756 376032 Total Income 9150072 8819088
15. Expenditure Incurred: (` in ‘000) Expenditure Yr. 2019-20 Yr. 2018-19 Interest Paid on deposit 6276169 5913745 Interest paid on borrowings 3812 74406 Operating Expenses 4764674 4378549 Provisions and Contingencies 2064552 646268 Total Expenditure 13109207 11012968
Working Results: (` in ‘000) Net Results Yr. 2019-20 Yr. 2018-19 Net Profit/Loss (-)3959135 (-)2193880
16. Key Financial Indicators / Ratios: (` in ‘000) Category Yr. 2019-20 Yr. 2018-19 Average Working Fund (AWF)* 128055665 118519070 i) Financial Return (%) 6.80 7.12 [Interest Earned as % of AWF] ii) Financial Cost (%) 4.90 5.05 [Interest Expended as % of AWF] iii) Financial Margin (%) (i-ii) 1.90 2.07 iv) Operating Expenses as % of AWF 3.72 3.69 v) Misc. Income as % of AWF 0.35 0.32 vi) Operating Margin as % of AWF (-)1.48 (-)1.31 vii) Risk Cost (%) 1.61 0.55 [Provision Cost as % of AWF] viii) Net Margin (%) (vi-vii) (-)3.09 (-)1.86 ix) Yield on Advances (%) 7.66 8.23 x) Yield on Investment (%) 6.98 7.14 xi) Cost of Deposits (%) 5.26 5.47 xii) Cost of Borrowings (%) 7.89 5.56 *AWF is calculated by adding averages of month end outstanding of Investments, Advances, Cash & Bank balances and Interest receivables.
17. Transfer Price Mechanism: Bank follows a policy of reimbursing branches by way of Head Office interest for funds lent to / borrowed from the branches. This Transfer Price Mechanism (TPM) enables the Bank to work out a close approximation of profit/loss of the branches on realistic and rational basis. During the year, Head Office interest was allowed @ 8.50% p.a.
18. Achievements under DAP / MOU: The performance of the Bank vis-à-vis MOU signed between the Bank and Sponsor Bank as on 31/03/2020 is given below: (` in ‘000) Parameters Target Achievement Deposits 119177100 125888754 Borrowings 20000 196917 Advances 52437924 51217555 Disbursement 24000000 22809961 Recovery (%) 78.00 74.06 Investments 82302000 74538707 Working Result -1684334 -3959135 Gross NPA 10487585 13358861
19. Interest Rates:
With deregulation of interest rates in deposits and advances, Bank follows a prudent policy of deciding interest rate on deposits and advances taking into account the market trends. Bank has been revising the interest rates from time to time as per the decisions taken in the meeting of ALCO.
20. Non-fund Business: In order to increase the fee based income, Bank has entered into a tie-up arrangement with Universal SOMPO General Insurance Company Ltd. as a corporate agent to market their non-life Insurance products on commission basis without any risk participation. Bank also earns income from Safe Deposit Lockers installed at 15 branches. 21. Human Resources Development: As at the end of 31st March 2020, total staff strength of the Bank is 2379 excluding Chairman and six General Managers on deputation from Sponsor Bank. Details of staff in different cadres are as under.
Category Total number Officers Scale IV 4 Officers Scale III 67 Officers Scale II 246 Officers Scale I 857 Office Assistant 1060 Office Attendant 145 Total: 2379 Representation of SC/ST in Staff strength as on 31.03.2020
Particulars Total staff as on 31.03.2020 SC/ST as on 31.03.2020 Officer 1174 283 Office Assistant 1060 416 Office Attendant 145 50 Total: 2379 749
SC/ST Cell has been set up at Head Office under the control of the Liaison Officer who looks after the issues of the SC/ ST employees and holds meetings at regular intervals with the representatives of SC/ST Employees’ Welfare Council to resolve their grievances, if any. Recruitments: During the year 2019-20, recruitments in different cadre have been made as under: Category Total number Officers Scale II - Officers Scale I 139 Office Assistant 134 Promotions: During the year 2019-20, promotions in different cadre have been accomplished as under: Category Total number From Officers Scale II to Scale III 14 From Officers Scale I to Scale II 37 From Officer Assistant to Officers Scale I - From Office Attendant to Office Assistant - 22. Trainings: In order to equip the staff with basic job knowledge and to up-date their skill necessary trainings are being provided both at Bank’s own Learning Center and imparted external trainings at other reputed organizations. During the year under report, 243 Officers and 102 Office Assistants have been provided with required training.
23. Industrial Relations: The industrial relation in the Bank continued to be cordial and harmonious. Meetings are being conducted at regular intervals with all trade Unions/Associations for overall growth of the Bank and staff members.
24. Computerisation: Bank is in CBS system with integrated database and the DC server connected to all 549 branches, 9 ROs, 16 CCOs and Head Office. IT Operation Status Finacle 7.0.18 is Bank’s Core Banking Software. M/S EIT Services India Pvt Ltd (Formerly HP Enterprises) is the service provider for Finacle Core Banking Solution, system integration and support. M/s FIS is the Switch Vendor of the Bank. It manages Bank’s Debit Card, Pin Pad transaction in Micro ATMs and also provides switching for IMPS and OTP for E-Commerce service. M/S Vsoft is service provider for CTS. M/S Atyati Technologies Pvt. Ltd. is the service provider for Micro ATM.
M/S CMS IT Services Pvt. Ltd is the service provider for Network at DC - DR and e-mail solution. M/S Natural Support and IT Services is the service provider for HRMS and C-KYC. M/S C-Edge Technologies Pvt Ltd is the service provider for IMPS (Outward) branch channel and DSC integrated PFMS. Bank is an Indirect Member of NPCI/NFS/CTS through the Sponsor Bank and direct member with UIDAI. Bank has 100 onsite ATMs at various locations. SMS alert facility has been extended to all transactions including DBT and PFMS credits. Bank has already implemented Aadhaar Enabled Payment System (both on us & off us). CTS along with NACH is on-lined in the bank. As of now in 16 clearing centers are on CTS platform. Bank has introduced RuPay Debit Cards. As on date 10.98 lacs RuPay Debit Cards issued to customers. Bank has introduced RuPay EMV debit cards since 16th Feb 2016. E-KYC has been implemented both at BC locations through Micro ATMs as well as branch channel. E-Commerce has been made live in Bank since 13th April, 2017 on NPCI’s Pay Secure platform. Bank has deployed 3rd party POS terminals of M/S Skillworth Technologies Pvt Ltd (BijliPay). As on date 84 terminals have been issued to our customers. IMPS (inward) has been made live since 26th April 2016 as beneficiary Bank and IMPS (Outward) P2A since 14th May 2019. BHIM Aadhaar Pay has been made live since 11th July 2017 as Issuer Bank. Dual Authentication for SHG AePS transaction on Micro ATM has been made live since 14th September, 2018. Bank has rolled out value added service of “Balance Enquiry through Missed Call” since 14th August, 2018.
Video Conference set up has been installed in all 9 Regional Offices connecting with Head Office. Bank has procured an in-house secured email solution and implemented since 28th August 2017. HRMS has been implemented on 1st November 2018. C-KYC has been rolled out since 30th March 2019. Bank has integrated DSC with Public Financial Management System (PFMS) w.e.f. 28th Jan 2020.
25. Financial Inclusion Programme: PMJDY Account & RuPay Cards Distribution: 12,21,050 PMJDY accounts are opened with mobilization of `522.29 Crore low cost deposits, out of which 1,71,779 are zero balance account constituting 14.53% of total PMJDY accounts. 5,94,092 RuPay Cards have been issued to PMJDY account holders.
Aadhaar & Mobile seeding: 74.34% of the operative SB accounts have been seeded with Aadhaar numbers and 70.54% of the accounts have been seeded with mobile numbers.
In PMJDY accounts, 78.47% of the accounts are Aadhaar seeded and 70.02% of the accounts are mobile seeded. Providing Doorstep Banking through ICT based Solutions: 691 BCs are deployed in unbanked SSAs under our command area, out of which all the BCs are using UIDAI registered devices (Micro ATMs).
22,18,434 transactions amounting to `610.64 Crore have been effected through Micro ATMs during FY 2019-20.
Mode of Transactions Provided: AEPS transactions for both deposits & withdrawals Non-AEPS account based transactions for Deposits Pin Pad transactions for withdrawals
Social Security Schemes: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):- 224209 account holders have been enrolled under the scheme. Death claims in respect of 1052 PMJJBY cases have been settled. Pradhan Mantri Suraksha Bima Yojana (PMSBY):- 608465 account holders have been enrolled under the scheme. Accidental claims in respect of 77 PMSBY cases have been settled. Atal pension Yojana (APY): In this Micro Pension scheme, 57621 customers have been enrolled. Financial Literacy: For stronger FLC architecture, Bank has adopted a comprehensive FLC Policy. In all the Regional Offices, designated FI nodal officers are looking after FLC activities in their command area. Bank has conducted 22 special camps for activation of Rupay Cards with the assistance of NPCI in the districts of Mayurbhanj and Keonjhar.
Bank has conducted a total of 629 Financial and Digital Literacy Camps under FIF (Financial Inclusion Fund), NABARD in all the 13 districts under its command area. Aadhaar Enrollment Centers:
Bank has established 55 Aadhaar Enrollment Centers in 55 Branches under its command area. These centers are facilitating enrollment and updation of Aadhaar on all working days. Selected officers of these Branches have been certified by UIDAI and are working as center supervisors. As on 31.03.2020, total 5406 customers have availed Aadhaar related services from Aadhaar enrollment centers. Bank has enrolled 617 new Aadhaars during the financial year.
26. Internal Inspection and House Keeping: During the year, 375 branches have been covered under regular inspection by Inspection Cells functioning at Cuttack, Pipli and Baripada. Branches have been rated based on their performance. Branches with poor rating are reviewed and monitored on regular basis. Jewel verification (100%) has been conducted in 405 branches out of 430 branches sanctioning Jewel Loans. Concurrent audit is in place in 174 branches as well as in Head Office. 183 branches have been covered under Information System (IS) Audit during the year as per the target. More focus is given on preventive vigilance in the Bank’s inspection system.
27. Customer Services: Customer Care is given top priority by the Bank. The Bank has a well laid out policy in place to redress the grievances of customer. Suggestions/complaints received from customers are being disposed of within shortest possible time.
Up-to-date information relating to interest rate on Advances/Deposits, Service charges etc. are available in Bank’s web site www.odishabank.in
28. Others a) Obligation of Statutory Provisions:
During the reporting year, the Bank has complied with the SLR, CRR requirements and made provisions for bad and doubtful debts/investments as per the IRAC norms.
b) Board Meetings / Board of Directors: In terms of Sec.8 of RRBs Act 1976, the general superintendence, direction and management of the affairs and business of the Bank are vested with the Board of Directors. The present strength of Board of Directors including Chairman is six. During the calendar year 2019, six Board meetings were conducted, where the performance of the Bank was closely monitored, progress reviewed and various policy decisions have been taken up for smooth running of the Bank on sound business principles. As on 31.03.2020, the Board of Directors of the Bank are as follows:-. Shri B. Nayak, Chairman, Odisha Gramya Bank
Shri Susil Chandra Mohanta, General Manager, Indian Overseas Bank, Regional Office, Bhubaneswar.
Shri Shyam Sundar Narang, Deputy General Manager, Indian Overseas Bank, Regional Office, Berhampur.
Shri Arun M. Tallur, Deputy General Manager, NABARD, Regional Office, Bhubaneswar.
Shri Santosh Kumar Patnaik, Asst. General Manager, Reserve Bank of India, Regional Office, Bhubaneswar.
Shri Satyabrata Rout, Joint Director, Institutional Finance & Joint Secretary, Finance Deptt., Govt. of Odisha, Bhubaneswar.
Acknowledgement:
The Board of Directors place on record its deep sense of gratitude to the Govt. of India, the Govt. of Odisha, Reserve Bank of India, NABARD and the District Administrations of Angul, Balasore, Bhadrak, Cuttack, Dhenkanal, Jagatsinghpur, Jajpur, Kendrapara, Khurda, Keonjhar, Mayurbhanj, Nayagarh and Puri for their guidance, co-operation and support extended to the Bank.
The Board wishes to convey its sincere thanks to Indian Overseas Bank (Sponsor Bank) for their valuable guidance, patronage and support.
The Board acknowledges with thanks the services rendered by Statutory Central Auditor, M/s C.K.Prusty & Associates, Chartered Accountants, Bhubaneswar and other Branch Auditors in conducting the statutory audit of the financial statements of the Bank for the year 2019-20.
The Board takes this opportunity to convey its heartfelt thanks to its customers, patrons and well- wishers for their valuable patronage and support extended to the Bank and solicits continued support from them in future also.
The Board records its profound appreciation for the services rendered by the staff members at all levels and expects the same with greater degree of involvement and commitment to scale new heights of performance in coming years.
The audited accounts for the year ending 31st March, 2020 are attached to this report.
For and on behalf of Board of Directors of Odisha Gramya Bank
(B. Nayak) Bhubaneswar Chairman 29th June, 2020
Encl: As above
PERFORMANCE OF THE BANK AT A GLANCE (AMOUNT IN ` '000) Sl. No. 2019-20 2018-19 2017-18
A. KEY PERFORMANCE INDICATORS 1 No. of Districts covered 13 13 13 2 No. of Branches 549 549 549 a) Rural 471 471 471 b) Semi-urban 50 50 50 c) Urban 28 28 28 d) Metropolitan - - - 3 Total Staff (Excluding Sponsor Bank staff) 2379 2366 2245 Of which Officers 1174 1192 1060 4 Deposits 125888754 112964095 103587102 Growth % 11.44 9.05 7.97 5 Borrowings Outstanding 196917 42846 2400101 Growth % 359.59 (98) 161.69 6 Gross loan and advances outstanding 51217556 48792135 46674338 Growth % 4.97 4.54 5.79 Of 6 above, loans to priority sector 44584293 42120656 39438595 Of 6 above, loans to NTG 17818588 17477343 17248082 Of 6 above, loans to SC/ST 5189241 4806025 4542723 Of 6 above, loans to SF/MF/AL 15513179 14754742 14077942 Of 6 above, loans to minorities 828912 741640 678731 7 C.D. RATIO 40.68 43.19 45.06 8 Investment Outstanding 74538707 64841231 66025566 Growth % 14.96 (1.79) 11.99 SLR Investment O/s 70957635 61679150 62043247 Non-SLR investment O/s 3581072 3162081 3982319 B. AVERAGES 9 Average Deposits 119301282 108077586 100228301 Growth % 10.38 7.83 11.11 10 Average Borrowings 660736 1337806 5509508 Growth % (50.61) (75.72) 85.16 11 Average Gross loans & Advances 50102741 47224085 44229942 Growth % 6.10 6.77 1.89 12 Average Investments 69762327 63837419 63509116 Growth % 9.28 0.52 24.95 Average SLR Invt. 65314505 61191984 58003514 Average Non-SLR Invt. 4447823 2645435 5505602 Average SLR Invt. As % to Avg. Deposits 54.75 56.62 57.87 Average Non-SLR Invt. As % to Avg. Deposits 3.73 2.45 5.49 13 Average Working Funds 128055665 118519070 114669533 C. LOANS ISSUED DURING THE YEAR 14 Loans issued during the year 22809961 23247880 24033266 Growth % (1.88) (3.27) (3.40) Of 14 above, loans to Priority sector 17986442 20123263 16439699 Of 14 above, loans to NTG 5658456 5652424 7755009 Of 14 above, loans to SC/ST 1139036 2327113 2396908 Of 14 above, loans to SF/MF/AL 1191409 3694088 3779118 Of 14 above, loans to Minorities 244931 192957 172028
D. PRODUCTIVITY 15 Per Branch 322598 294638 273700 Per Staff 74446 68367 66932 E. RECOVERY PERFORMANCE 16 Total Recovery Demand 29053823 24280028 22901067 Recovery 21517527 18821192 17077679 Over dues 7536296 5458836 5823388 Recovery % (June position) 74.06 77.52 74.57 17 Farm Sector Demand 9824550 8265681 7274558 Recovery 6602246 5875029 4926983 Over dues 3222304 2390652 2347575 Recovery % (June position) 67.20 71.08 67.73 18 Non-Farm Sector Demand 19229273 16014347 15626509 Recovery 14915281 12946163 12150696 Over dues 4313992 3068184 3475813 Recovery % (June position) 77.57 80.84 77.76 F. ASSET CLASSIFICATION 19 a) Standard 37858694 36438326 36206844 b) Sub-standard 3046561 2647525 2594901 c) Doubtful 10213368 9601940 7801196 d) Loss 98932 104344 71397 Total 51217555 48792135 46674338 20 Std. Assets as % Gross Loans & Adv. O/s 73.92 74.68 77.57 G. PROFITABILITY ANALYSIS 21 Interest paid on: a) Deposits 6276169 5913745 5809826 b) Borrowings 3812 74406 223639 22 Staff Expenses 3991570 3696845 1674936 23 Other operating expenses 773104 681704 648839 24 Provisions made during the year a) Against NPAs 2537593 773770 252150 b) Other provisions (473041) (127502) 1155612 25 Interest received on a) Loans and Advances 3838033 3887068 4141789 b) SLR Invts/Money at Call/Non SLR investment 4562332 4383823 4066912
c) Inter Bank Term Deposit 306917 172127 389457 d) Others 34 38 35 26 Misc. Income 442756 376032 415926 27 Profit/Loss (3959135) (2193880) (750883) H. OTHER INFORMATION 28 Additional Captal Received 1469900 288400 194500 29 DICGC a) Claims settled cumulative - - - b) Claims recvd. But pending adjustment - - - c) Claims pending with corporation - - -
30 Cumulative Provision - - a) Against NPAs 7234249 4696656 3922886 b)Against PAs 132605 110123 128091 c) Against Investment - 802351 1163168 d)Against intangible assets, fraud etc 255966 305306 353104 31 Interest derecognised a) During the year 35681 34953 12539 b) Cumulative 35681 34953 12539 32 Loans written off during the year a) No. of a/cs 16119 8714 22206 b) Amount 307699 231637 176984 33 Accumulated loss 10260258 6301123 4107243 34 Reserves 558354 558354 558354
ODISHA GRAMYA BANK
FORM 'A' BALANCE SHEET AS ON 31ST MARCH, 2020
CAPITAL & LIABILITIES SCHEDULE As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Capital 1 6764086 5940086 Share Capital Deposit 1A 1057900 412000 Reserves and Surplus 2 558354 558354 Deposits 3 125888754 112964095 Borrowings 4 345058 190987 Other Liabilities and Provisions 5 5349620 4550461 TOTAL 139963772 124615983
ASSETS SCHEDULE As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Cash and Balance 6 4236280 5388331 with Reserve Bank of India Balance with banks and Money at 7 5463209 3589729 Call & Short Notice Investments 8 71057635 61161799 Advances 9 43983306 44095479 Fixed Assets 10 213621 259310 Other Assets 11 15009721 10121335 TOTAL 139963772 124615983 Contingent Liabilities 12 678203 604367 Bills for Collection - -
For C K Prusty & Associates For Odisha Gramya Bank Chartered Accountants FRN 323220E Sd/- Sd/- Sd/- Sd/- (CA C K Prusty) (B Nayak) (S C Mohanta) (D K Barik) M. No. 057318 Chairman Director Director Partner Sd/- Sd/- Sd/- (R C Sahoo) (S K Das) (S Rout) Director Director Director Sd/- Sd/- (G B Pradhan) (B K Nayak) Place: Bhubaneswar General Manager Senior Manager (P&T) Date: 29th June, 2020
ODISHA GRAMYA BANK
FORM 'B' PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2020 Year ended Year ended SCHEDULE 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` I. INCOME thousand) thousand) Interest Earned 13 8707316 8443056 Other Income 14 442756 376032 TOTAL 9150072 8819088 II. EXPENDITURE Interest Expended 15 6279981 5988151 Operating Expenses 16 4764674 4378549 Provisions and Contingencies 2064552 646268 TOTAL 13109207 11012968 Year ended Year ended SCHEDULE 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` III. PROFIT / LOSS thousand) thousand) Profit / Loss for the year before Income (3959135) (2193880) Tax Provision Income Tax Provision - - Profit / Loss for the year after Income Tax (3959135) (2193880) Provision Profit/Loss(-) brought forward (6301123) (4107243) TOTAL (10260258) (6301123) IV. APPROPRIATIONS Transfer to Statutory Reserve - - Transfer to Capital Reserve - - Transfer to Other Reserves - - Transfer to Govt. / Proposed dividend - - Balance Loss carried over to Balance (10260258) (6301123) Sheet TOTAL NET OF RESERVE (10260258) (6301123)
The Schedules 1 to 16A form an integral part of the Accounts. For C K Prusty & Associates For Odisha Gramya Bank Chartered Accountants FRN 323220E Sd/- Sd/- Sd/- Sd/- (CA C K Prusty) (B Nayak) (S C Mohanta) (D K Barik) M. No. 057318 Chairman Director Director Partner Sd/- Sd/- Sd/- (R C Sahoo) (S K Das) (S Rout) Director Director Director Sd/- Sd/- (G B Pradhan) (B K Nayak) Place: Bhubaneswar General Manager Senior Manager (P&T) Date: 29th June, 2020
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2020 SCHEDULE-1 CAPITAL As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Authorised Capital (200,00,00,000 shares of ` 10/- each) 20000000 20000000 Issued Capital (67,64,08,565 shares of ` 10/- each) 6764086 5940086 Subscribed Capital (67,64,08,565 shares of ` 10/- each) 6764086 5940086 Called-up Capital (67,64,08,565 shares of ` 10/- each) 6764086 5940086 Paid up Capital (67,64,08,565 shares of ` 10/- each) 6764086 5940086 TOTAL: 6764086 5940086
SCHEDULE-1A SHARE CAPITAL DEPOSIT As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Indian Overseas Bank (Sponsor bank) 406400 288400 Government of India 580600 - Government of Odisha 70900 123600 TOTAL: 1057900 412000
SCHEDULE-2 RESERVES & SURPLUS As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Statutory Reserves Opening Balance - - Addition during the year - - Deductions during the year - - Closing Balance - - II. Capital Reserves Opening Balance 1,15,269 1,15,269 Addition during the year - - Deductions during the year - - Closing Balance 1,15,269 1,15,269 III. Share Premium Opening Balance - - Addition during the year - - Deductions during the year - - Closing Balance - - IV. Revenue and other Reserves Opening Balance 4,43,085 4,43,085 Addition during the year - - Deductions during the year - - Closing Balance 4,43,085 4,43,085 V. Balance in Profit and Loss Account - - TOTAL: (I,II,III,IV,V) 5,58,354 5,58,354
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2020 SCHEDULE-3 DEPOSITS
As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) A. I. Demand Deposits 983789 890441 i) From Banks 165 233 ii) From others 983624 890208 II. Saving Bank Deposits 57215576 49166644 III. Term Deposits 67689389 62907010 i) From Banks - - ii) From others 67689389 62907010 TOTAL (I,II and III) 125888754 112964095 B. i) Deposits of branches in India 125888754 112964095 ii) Deposits of branches outside India - - TOTAL: 125888754 112964095
SCHEDULE-4 BORROWINGS
As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Borrowings in India 345058 190987 i) Reserve Bank of India - - ii) Sponsor Bank - - iii) Other Institutions and Agencies (NABARD, NSTFDC) 196917 41821 iv) Others - 1025 v) Hybrid debt capital instruments 148141 148141 II. Borrowings Outside India - - TOTAL (I and II) 345058 190987 Secured borrowings included in I and II above - -
SCHEDULE-5 OTHER LIABILITIES AND PROVISIONS As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Bills payable 72126 66063 II. Inter-office adjustments (net) 10907 25717 III. Interest accrued 539463 482261 IV. Contingent Provision against Standard Assets 112707 110123 V. Contingent Provision against Standard Assets (As per COVID19 19898 - Regulatory Package) VI. Others including provisions 4594519 3866297 TOTAL: 5349620 4550461
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2020 SCHEDULE-6 CASH AND BALANCES WITH RESERVE BANK OF INDIA
As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Cash in hand (including foreign currency notes) 630193 409058 II. Balances with Reserve Bank of India i) In Current Account 3606087 4979273 ii) In other Accounts - - TOTAL: (I and II) 4236280 5388331
SCHEDULE-7 BALANCE WITH BANKS AND MONEY AT CALL & SHORT NOTICE
As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) I. In India (Figures in ` (Figures in ` thousand) thousand) i) Balances with banks a) In Current Accounts 1982137 712648 b) In Term Deposits with other banks 3481072 2877081 TOTAL: 5463209 3589729 ii) Money at Call and Short Notice a) Share Capital Deposit with IOB - - b) With other institutions - - TOTAL: - - II. Outside India i) In Current Account - - ii) In other deposit accounts - - iii) Money at Call and Short Notice - - TOTAL: - - GRAND TOTAL: 5463209 3589729
SCHEDULE-8 INVESTMENTS As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Investments in India i) Government securities 70957635 60876799 ii) Other approved securities - - iii) Shares & Mutual funds - - iv) Debentures and Bonds (NCDs) - 285000 v) Subsidiaries and/or Joint Ventures - - vi) Others (Term Money Borrowing with NABARD) 100000 - TOTAL: 71057635 61161799 II. Investments outside India i) Government securities (including local authorities) - - ii) Subsidiaries and/or Joint Ventures abroad - - GRAND TOTAL: 71057635 61161799 Investment O/s position is shown net of provisions.
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2020 SCHEDULE-9 ADVANCES As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) A. i) Bills purchased and discounted - - ii) Cash credits and overdrafts and loans repayable on 24009060 20210897 demand iii) Term Loans 19974246 23884582 TOTAL: 43983306 44095479 B. i) Secured by Tangible Assets 41996759 42158401 ii) Covered by Bank/Govt.Guarantees 1238233 1182851 iii) Unsecured 748314 754227 TOTAL: 43983306 44095479 C. I. Advances in India i) Priority sectors 36122545 37134850 ii) Public Sector 2536062 2486645 iii) Banks - - iv) Others 5324699 4473984 TOTAL: 43983306 44095479 II. Advances Outside India i) Due from banks - - ii) Due from others - - a) Bills purchased and discounted - - b) Syndicated Loans - - c) Others - - TOTAL: - - GRAND TOTAL: (C.I & II) 43983306 44095479 Advances O/s position is shown net of NPA provisions.
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2020
SCHEDULE-10 FIXED ASSETS As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Premises At cost as on 31st March of the preceding year 75630 75630 Additions during the year - - Deductions during the year - - Depreciation to date (8516) (5849) TOTAL: (I) 67114 69781 II. Other Fixed Assets (Including furniture & fixtures) At cost as on 31st March of the preceding year 901882 855018 Additions during the year 30936 46909 Deductions during the year (103) (45) Depreciation to date (788991) (715324) TOTAL: (II) 143724 186558 III. Software (Intangible) At cost as on 31st March of the preceding year 102191 100080 Additions during the year 1710 2111 Deductions during the year - - Depreciation to date (101118) (99220) TOTAL: (III) 2783 2971 TOTAL: (I,II&III) 213621 259310
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2020 SCHEDULE-11 OTHER ASSETS As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Inter-Office adjustments (net) - - II. Interest receivable 1735942 1483388 III. Interest Subvention receivable from Govt. 656410 741037 IV. Tax paid in advance/tax deducted at source 103063 151257 V. Stationery and stamps 18562 21795 VI. Non-banking assets acquired in satisfaction of claims - - VII. Accumulated Loss 10260258 6301123 VIII. Others 2235486 1422735 TOTAL: 15009721 10121335
SCHEDULE-12 CONTINGENT LIABILITIES As on 31.03.2020 As on 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Claims against the bank not acknowledged as debts - - II. Liability for partly paid investments - - III. Liability on account of outstanding forward exchange - - contracts IV. Guarantees given on behalf of constituents - - a) In India 302906 240334 b) Outside India - - V. Acceptances, endorsements and other obligations - - VI. Other items for which the banks is contingently liable a) DEAF Account 4184 2653 b) Income Tax Demand 315721 315721 c) Civil Suit Claim 55392 45659
TOTAL: 678203 604367
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2020
SCHEDULE-13 INTEREST EARNED Year ended Year ended 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Interest / discount on advances / bills 3838033 3887068 II. Income on investment 4562332 4383823 III. Interest on balance with Reserve Bank of India & Other inter- 306917 172127 bank funds IV. Others 34 38 TOTAL: 8707316 8443056
SCHEDULE-14 OTHER INCOME Year ended Year ended 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Commissions, exchange and brokerage 49758 54121 II. Profit on sale of investments 92410 43268 Less: Loss on sale of investments - - III. Profit on revaluation of investments - - IV. Profit on sale of land, building and other assets 3617 2445 Less: Loss on sale of land, building and other assets - - V. Profit on exchange transactions - - Less: Loss on exchange transactions - - VI. Income earned by way of dividends, NPA investments etc. from - - subsidiaries / companies and / or joint ventures abroad / in India VII. Credit balance in postage a/c. - - VIII. Miscellaneous income 296971 276198 TOTAL: 442756 376032
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2020
SCHEDULE-15 INTEREST EXPENDED Year ended Year ended 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Interest on deposits 6276169 5913745 II. Interest on Reserve Bank of India/ Inter-bank borrowings 1968 65538 III. Others a. NABARD 1844 8868 TOTAL: 6279981 5988151
SCHEDULE-16 OPERATING EXPENSES Year ended Year ended 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Payments to and provisions for employees 3991570 3696845 II. Rent, taxes and lighting 86971 80738 III. Printing and Stationery 20831 22449 IV. Advertisement and Publicity 122 303 V. Depreciation on Bank's property 78232 70219 VI. Director's fees, allowances and expenses 13 24 VII. Auditors' fees & expenses 4284 (including branch auditors) 3897 VIII. Law charges 1961 849 IX. Postages, Telegram, Telephones etc. 7882 8162 X. Repairs, maintenance and CBS 99362 64760 XI. Insurance 114149 104362 XII. Other expenditure 359684 325554 TOTAL: 4764674 4378549
SCHEDULE-16A PROVISIONS AND CONTINGENCIES Year ended Year ended 31.03.2020 31.03.2019 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Provision for NPAs 2537593 773771 II. Provision for Standard Assets 2584 (17968) III. Provision for Standard Assets (As per COVID 19 Regulatory 19898 - Package) IV. Bad Debts written off 307699 231637 V. Provision for Depreciation on Investments (802351) (360817) VI. Provision for Fraud 153 5045 VII. Provision for Robbery (1024) 14600 TOTAL: 2064552 646268
SCHEDULE FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2020
SCHEDULE-17
SIGNIFICANT ACCOUNTING POLICIES 1. ACCOUNTING CONVENTIONS The financial statements have been prepared under the historical cost convention unless otherwise stated. They conform to Generally Accepted Accounting Principles (GAAP) in India, which comprises statutory provisions, regulatory / Reserve Bank of India (RBI) guidelines, Accounting Standards / Guidance Notes issued by the Institute of Chartered Accountants of India (ICAI) and practices prevalent in the banking industry in India.
USE OF ESTIMATES The preparation of financial statements requires the management to make estimates and assumptions for considering the reported assets and liabilities (including contingent liabilities) as on the date of financial statements and the income and expenses for the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. 2. ADVANCES Advances in India have been classified as ‘Standard’, ‘Sub-Standard’, ‘Doubtful‘ and ‘Loss assets’ and provisions are made as per prudential norms issued by Reserve Bank of India from time to time. Advances are stated net of provisions except general provisions for standard advances The minimum provisioning on the standard advances as per the prudential norms of the Reserve Bank of India as under: Segment Provisioning Norm (%) Direct Advance to Agricultural 0.25 SME 0.25 Residential Housing 0.75 Commercial Real Estates (CRE) 1.00 Restructured Advances 5.00 Other Standard Advances 0.40 Additional Provision (Covid-19 Regulatory Package) 5.00
Provisions are made for non-performing advances as under:
a) Sub-Standard: i) A general provision of 10% on the total outstanding ii) Additional provision of 10% for exposure which are unsecured ab-initio (ie., where realizable value of securities is not more than 10% ab-initio. b) Doubtful Category-1 i) 20% for Secured portion. ii) 100% for unsecured portion. c) Doubtful Category-2 i) 30% for Secured portion. ii) 100% for unsecured portion. d) Doubtful category-3 and Loss advances–100%. Advances disclosed are net of provisions made for non-performing assets.
Recoveries in Non-Performing Advances are appropriated first towards the interest and thereafter the principal.
3. INVESTMENTS
3.1 Investments in India are classified into “Held for Trading”, “Available for Sale” and “Held to Maturity” in line with the guidelines from Reserve Bank of India.
Disclosures of Investments in Balance Sheet are made under five classifications viz. i) Government Securities ii) Other Approved securities including those issued by local bodies iii) Shares & Mutual Funds iv) Debentures and Bonds v) Others
3.2 Interest on Investments, where interest/principal is in arrears for more than 90 days is recognized on realization basis as per prudential norms.
3.3 Valuation of Investments is done in accordance with the guidelines issued by reserve Bank of India as under:
a) Individual securities under “Held for Trading” and “Available for Sale” categories are marked to market at quarterly intervals. Central Government securities and State Government securities are valued at market rates declared by Financial Benchmark India Pvt. Ltd. (FBIL). Other approved securities and Bonds & debentures are valued as per the yield curve, credit spread rating-wise and other methodologies suggested by FBIL.
Treasury Bills are valued at carrying cost.
Based on the above valuations under each of the five classifications, net depreciation, if any, is provided for and net appreciation, if any, is ignored. Though the book value of individual securities would not undergo any change due to valuation, in the books of account, the investments are stated net of depreciation in the balance sheet.
b) “Held to Maturity”: Such investments are carried at acquisition cost/amortised cost. The excess, if any, of acquisition cost over the face value of each security is amortised over the remaining period of maturity.
c) Investments are subject to appropriate provisioning /de-recognition of income, in line with the prudential norms prescribed by Reserve Bank of India for NPA classification. Bonds and Debentures in the nature of advances are also subject to usual prudential norms and accordingly provisions are made, wherever applicable.
d) Profit/Loss on sale of Investments in any category is taken to Profit and Loss account. In case of profit on sale of investments in “Held to Maturity” category, profit net of taxes is appropriated to “Capital Reserve Account” provided Bank earns net profit.
e) Broken period interest, Incentive / Front-end fees, brokerage, commission etc. received on acquisition of securities are taken to Profit and Loss account.
f) Repo / Reverse Repo transactions are accounted as per RBI guidelines. Bank has no Repo / Reverse Repo transactions.
4. FIXED ASSETS a) All Fixed Assets are stated at historical cost. b) Depreciation is provided on straight line method at the rates considered appropriate by the Management as under: Particulars Rate of Depreciation (SLM) Furniture 10.00 % Electrical Installation, Vehicles & Office Equipments 20.00 % Computers 33.33 % Premises 2.50 % Computer Software 33.33 % c) Depreciation is provided from the date of acquisition. d) In respect of leasehold properties, premium is amortised over the period of lease.
5. INCOME RECOGNITION
a) Interest on performing assets has been recognized on accrual basis and on non- performing assets on realization basis as per RBI guidelines.
b) Interest on Government Securities/Debentures and other fixed income earning securities has been recognized on accrual basis except for non-performing investments where income is recognized on realization basis.
c) Profit on sale of Investments is credited to Profit & Loss Account being a normal operating activity of the bank after netting off with the loss on sale of Investments.
d) Rent on Safe Deposit Lockers is accounted for on Cash Basis.
e) Collection of Charges on account of Postage and on other Miscellaneous heads are recognized as income after netting off of actual expenses incurred under that head and shown under the head Miscellaneous Income in the Profit and Loss Account.
f) Interest subvention reimbursable by Govt. is accounted on accrual basis.
g) Amortisation amount on account of premium paid on investment is netted off against the interest income from investment.
6. EMPLOYEE BENEFITS a) Contribution to Provident Fund is charged to Profit and Loss Account.
b) Provision for gratuity and pension liability is made on actuarial basis and contributed to approved Gratuity and Pension Fund. Provision for encashment of accumulated leave payable on retirement or otherwise is based on actuarial valuation at the year-end. However, additional liability accrued during the year on account of reopening of pension option and enhancement of Gratuity limit is being amortised over a period of five years.
7. ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
In accordance with Accounting Standard 29, “Provisions, Contingent Liabilities and Contingent
Assets”, issued by the Institute of Chartered Accountants of India, the Bank recognizes provisions when it has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
Provisions are determined based on management estimate required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot be reasonably estimated, a disclosure is made in the financial statements.
Contingent Assets, if any, are not recognized or disclosed in the financial statements.
For C K Prusty & Associates For Odisha Gramya Bank Chartered Accountants FRN- 323220E
(B Nayak) (S C Mohanta) (D K Barik) (CA C K Prusty) Chairman Director Director Partner M. No. 057318 (R C Sahoo) (S K Das) (S Rout) Director Director Director
Place: Bhubaneswar (G B Pradhan) (B K Nayak) Date: 29th June, 2020 General Manager Senior Manager (P&T)
NOTES FORMING INTEGRAL PART OF THE ACCOUNTS AND ADDITIONAL DISCLOSURES IN TERMS OF THE RESERVE BANK OF INDIA GUIDELINES FOR THE YEAR ENDED 31st MARCH 2020.
SCHEDULE - 18
The Odisha Gramya Bank (OGB) was constituted on 7th January, 2013 as a result of amalgamation of three Regional Rural Banks i.e. erstwhile Neelachal Gramya Bank- sponsored by Indian Overseas Bank with its Head Office at Bhubaneswar, erstwhile Kalinga Gramya Bank –sponsored by UCO Bank with its Head Office at Cuttack and erstwhile Baitarani Gramya Bank-Sponsored by Bank of India with its Head Office at Baripada vide Notification No. F.1 / 1 / 2012-RRB dated 07. 01. 2013 issued under sub-section (1) of Section 23A of Regional Rural Banks Act 1976 (21 of 1976) by the Ministry of Finance, Department of Financial Services, Government of India under the Sponsorship of Indian Overseas Bank with its Head Office at Bhubaneswar. A. SHARE CAPITAL 1. The entire share capital of the Bank is as under:- The Authorized Capital of the Bank is `200000 lacs and Paid-up Capital is `67640.86 lacs contributed by Government of India, Sponsor Bank (Indian Overseas Bank) and Government of Odisha in the ratio of 50:35:15 respectively. a. Share Capital: Amount (` in Lacs) Sl. No. Name of Share Holder No. of Shares Share capital 1. Govt. of India 338204260 33820.43 2. Indian Overseas Bank 236743007 23674.30 3. Govt. of Odisha 101461298 10146.13 Total 676408565 67640.86
b. Share Capital Deposit: Government of India, vide their letter no. F.No. 3/8/2010-RRB(Vol.V) dated 30th March, 2020 has approved recapitalisation assistance of `116.12 crore to maintain minimum Capital to Risk Weighted Assets Ratio (CRAR). Government of India and Indian Overseas Bank have released their proportionate share. Government of Odisha has released its share (15%) of `10.33 crore on 04.05.2020. Bank has already `7.09 crore Share Capital Deposit of Government of Odisha released on 12.06.2017. (` in Lacs) Additional share capital Additional share capital Sl. Name of Share Holder sanctioned as on actually received as on No. 31.03.2020 31.03.2020 1. Govt. of India 5806.00 5806.00 2. Indian Overseas Bank 4064.00 4064.00 3. Govt. of Odisha 1742.00 709.00 Total 11612.00 10579.00
The mandatory disclosure requirements of Reserve Bank of India are given under the respective heads of disclosure as applicable, or stated separately if no other disclosure was required to be made in that respect.
2. The Bank’s Capital to Risk Weighted Assets Ratio (CRAR) has been worked out as per Reserve Bank of India guidelines. The Ratios as at 31st March, 2020 are:
ITEMS As on 31.03.2020 As on 31.03.2019 Capital to Risk Weighted Asset Ratio-(Overall) % -4.91 2.24 Capital to Risk Weighted Asset Ratio-Tier-I % -4.91 1.57 Capital to Risk Weighted Asset Ratio-Tier-II % - 0.67 Percentage of the Share Holding of the: Government of India (%) 50 50 State Government of Odisha (%) 15 15 Sponsor Bank (Indian Overseas Bank) (%) 35 35
B. RESERVES The current year Loss of ` 39591.35 Lakhs has been appropriated against accumulated loss of the bank shown under other assets (Schedule 11). C. FIXED ASSETS The bank has constructed its Head Office building on leasehold land measuring Ac 0.434 at Gandamunda, Bhubaneswar.
D. INVESTMENTS:
i) The disclosure regarding Investments as per guidelines of RBI is stated below: (` in Lacs) Particulars As on 31.03.2020 As on 31.03.2019 1. Value of Investments: Gross value of investments 710576.35 619641.50 Provisions for depreciation - (8023.51) Net Value of investments 710576.35 611617.99 2. Movement of provisions held towards depreciation on investments: Opening balance 8023.51 11631.68 Add: Provisions made during the year - - Less: Write off/write back of excess (8023.51) (3608.17) provisions during the year Closing balance - 8023.51
ii) Repo Transactions: (` in Lacs) Item Minimum Maximum Daily Average As on outstanding outstanding outstanding 31.03.2020 during the year during the year during the year Securities Sold - - - - under Repos Securities purchased - - - - under reverse Repos
iii) Non SLR Investments: Issuer Composition of Non SLR Investments (` in Lacs) Sl Issuer Amount Extent of Extent of ‘Below Extent of Extent of No. ` in Lacs Private investment ‘Un-rated’ ‘Un-listed’ Placement grade’ securities securities securities 1 2 3 4 5 6 7 1 PSU - - - - - 2 FIs 1000.00 1000.00 - - 1000.00 3 Banks - - - - - 4 Private Corporate - - - - - 5 Others - - - - - 6 Depreciation - - - - - Total 1000.00 1000.00 - - 1000.00
iv) Instrument wise composition of Non SLR investments is as under (` in Lacs) Shares& Mutual Fund - Debentures - Others (NABARD Term Money Borrowings) 1000.00 Total 1000.00
v) Non-Performing Non-SLR Investments: (` in Lacs) Particulars As on 31.03.2020 As on 31.03.2019 Opening balance - - Additions during the year - - Reduction during the above period - - Closing balance - - Total provisions held - -
E. NON-PERFORMING ASSETS (NPAs):: (` in Lacs) Particulars 31.03.2020 31.03.2019 Net NPA to Net Advances (%) 13.92 17.36 Movement of NPAs (Gross) Opening balance 123538.09 104674.94 Additions during the year 68060.01 51714.19 Reductions during the year (58009.49) (32851.04) Closing balance 133588.61 123538.09 Movement of Net NPAs Opening balance 76571.53 65446.08 Additions during the period 61254.01 46542.77 Reductions during the period (76579.42) (35417.32) Closing balance 61246.12 76571.53 Movement of provisions for NPAs (excluding provision on standard assets) Opening balance 46966.56 39228.86 Provisions made during the period 28452.92 10054.07 Write-back of excess provisions (3076.99) (2316.37) Closing balance 72342.49 46966.56
F. DETAILS OF LOAN ASSETS SUBJECTED TO RESTRUCTURING (` in Lacs) Sl. Particulars 31.03.2020 31.03.2019 No. i Total amount of loan assets subjected to 469.58 640.58 restructuring, rescheduling, renegotiation; ii The amount of Standard assets subjected to - - restructuring, rescheduling, renegotiation; iii The amount of Sub-Standard assets subjected 469.58 640.58 to restructuring, rescheduling, renegotiation; iv The amount of Doubtful assets subjected to - - restructuring, rescheduling, renegotiation;
G. DETAILS OF FINANCIAL ASSETS SOLD TO SECURITIZATION (SC) RECONSTRUCTION COMPANY (RC) FOR ASSETS RECONSTRUCTION. (` in Lacs) i) No. of accounts - ii) Aggregate value(net of provisions) of accounts sold to SC/RC - iii) Aggregate consideration - iv) Additional consideration realized in respect of accounts transferred in earlier year - v) Aggregate gain/loss over net book value -
Details of non-performing financial assets purchased. (` in Lacs) 1(a) No. of accounts purchased during the year - (b) Aggregate outstanding - 2(a) Of these, number of account restructured during the year - (b) Aggregate outstanding -
Details of non-performing financial assets sold. ( ` in lacs) 1. No. of accounts sold - 2. Aggregate outstanding - 3. Aggregate consideration received -
Provisions on Standard Asset: (` in lacs) Particulars 31.03.2020 31.03.2019 Provisions towards Standard Assets 1127.07 1101.23 Additional provision for standard 198.98 - Assets(Covid-19 Regulatory Package) Total Provision towards Standard Assets 1326.05 1101.23
Amount of NPAs (Gross) (` in lacs) Particulars 31.03.2020 31.03.2019 Sub standard 30465.61 26475.25 Doubtful 1 16213.69 26858.87 Doubtful 2 31869.06 46898.47 Doubtful 3 54050.93 22262.06 Loss 989.32 1043.44 Total 133588.61 123538.09
H. CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs
Concentration of Deposits (` in crore) Total Deposits of twenty largest depositors 210.65 Percentage of deposits of twenty largest depositors to total deposits 1.67 of the bank
Concentration of Advances (` in crore) Total Advances of twenty largest borrowers 329.18 Percentage of Advances to twenty largest borrowers to total 6.43 advances of the bank
Concentration of Exposures (` in crore) Total Exposures of twenty largest borrowers/customers 539.83 Percentage of Exposures of twenty largest borrowers/customers to 3.05 total exposures of the bank on borrowers / customers
Concentration of NPAs (` in crore) Total outstanding of top four NPA Accounts 21.20 Percentage of top four NPA accounts to total NPA of the bank 1.59
I. Sector wise NPAs (` in crore) Sl Sector 2019-20 2018-19 No. Outstandi Gross Percentage of Outstan Gross Percentage ng Total NPAs Gross NPAs to ding NPAs of Gross Advances total total NPAs to total Advances in Advanc Advances in that sector es that sector A Priority Sector 1 Agriculture & 1961.74 620.65 31.64 1784.54 526.81 29.52 Allied Activities 2 Advances to Industries Sector 1160.31 278.66 24.02 833.65 269.78 32.36 eligible as priority sector lending 3 Services 1336.48 370.63 27.73 1593.88 380.72 23.89 4 Personal Loans - - - - - Sub-Total (A) 4458.53 1269.94 28.48 4212.07 1177.31 27.95 B Non-Priority Sector 1 Agriculture and ------allied activities 2 Industry ------3 Services 514.10 37.98 7.38 501.08 54.18 10.81 4 Personal Loans 149.13 27.97 18.76 166.06 3.89 2.34 Sub-Total (B) 663.23 65.95 9.94 667.14 58.07 8.70 Total (A+B) 5121.76 1335.89 26.08 4879.21 1235.38 25.32
II. Movement of NPAs
Particulars (` in crore) Gross NPAs as on 1st April 2019 ( Opening Balance) 1235.38 Addition (Fresh NPAs) during the year 680.60 Sub-Total (A) 1915.98 Less: (i) Up gradations 230.84 (ii) Recoveries 318.48 (iii) Write offs 30.77 Sub -Total (B) 580.09 Gross NPAs as on 31st March 2020 (Closing Balance) (A-B) 1335.89
I. ASSET LIABILITY MANAGEMENT Maturity pattern of certain items of assets and liabilities as at March 31, 2020: (` in crore) Particulars 1 to 14 15 to 29 days Over 3 Over 6 Over 1 Over 3 Over 5 Total days 28 days to 3 Months months year and years years months and and upto 3 and upto 6 upto 1 years upto 5 months year years Deposits 423.24 410.44 907.34 868.39 963.63 2210.60 1313.37 5491.87 12588.88 Advances 371.61 288.37 85.84 397.72 861.81 1877.85 635.09 603.47 5121.76 Investments 68.59 155.52 864.03 566.37 206.04 376.80 699.83 4516.69 7453.87 Borrowings 0.00 0.00 0.95 1.10 1.90 8.14 7.60 0.00 19.69 Foreign ------currency assets Foreign ------currency liabilities
J. EXPOSURES – EXPOSURE TO REAL ESTATE SECTOR (` in lacs) a) Direct exposure 31.03.2020 31.03.2019 i) Lending fully secured by mortgages on residential property 20949.75 22264.76 that is or will be occupied ii) Out of the above limit sanctioned for more than ` 25 lacs 2299.73 2444.08 iii) Commercial Real Estate: 352.11 588.92 iv) Investments in Mortgage Backed Securities (MBS) and other - - securitized exposures a. Residential: - - b. Commercial Real Estate: - - b) Indirect Exposure - - Housing Finance Companies (HFCs) - -
K. DETAILS OF SINGLE BORROWER LIMIT (SBL)/GROUP BORROWER LIMIT (GBL) EXCEEDED BY THE BANK: The bank has not exceeded the limits as specified above, and hence no information is required to be given hereunder.
L. INCOME TAX
(a) Amount of provisions made for Income tax during the year: (` in lacs) Particulars 2019-20 2018-19 Provision for Income Tax - -
(b) List of various demands pending with Income Tax Authorities are as under: Erstwhile Neelachal Gramya Bank Sl Financial Assessmen Particulars Demand No year t Year Amount (`) 1 2009-10 2010-11 Appeal filed with ITAT on 26.02.2018 against CIT (A) 1,87,86,567/- order and case is pending with ITAT. 2 2011-12 2012-13 ITAT has issued order dt 19.03.2018 received on 8,74,13,210/- 10.04.2018 confirming the CIT (A) Oder with a demand of `8,74,13,210/-. Bank has already deposited the said demand amount of `8,74,13,210/- against the order of Principal Commissioner of Income Tax -1, Bhubaneswar. 3 2011-12 2012-13 Case reopened by AO and order dt 30.12.2017 passed 12,56,77,550/- with demand of ` 14,92,57,060/-. A rectification u/s 154 made on 25.05.2018 revising the net demand at ` 12,56,77,550/-. Against the said demand amount of ` 950,66,078/- has been paid to Income tax department, which includes payment of ` 8,74,13,210/- mentioned in Sl no 2 above. Appeal has been filed with CIT (A) against the said order and case is pending. 4 2012-13 2013-14 Assessment order dt. 15.12.2017 with demand of 15,06,92,540/- `15,06,92,540/- issued by AO. Appeal has been filed with CIT(A) and case is pending. Erstwhile Baitarani Gramya Bank Sl Financial Assessment Particulars Demand No year Year Amount (`) 5 2010-11 2011-12 Appeal has been filed with CIT(A) and case is pending 6,20,720/- 6 2011-12 2012-13 Appeal has been filed with ITAT on 15.12.2017 12,98,521/- against CIT (A) order. ITAT allowed for rehearing of case by CIT(A) vide their order dated 26.07.2019. 7 2012-13 2013-14 Appeal filed with CIT (A) on 27.04.2016 and case is 11,50,937/- pending. Erstwhile Kalinga Gramya Bank Sl No Financial Assessment Particulars Demand year Year Amount (`) 8 2012-13 2013-14 Appeal with CIT (A) has been filed and case is pending. 7,33,06,840/-
Odisha Gramya Bank
Sl No Financial Assessment Particulars Demand year Year Amount (`) 9 2016-17 2017-18 Appeal with CIT (A) has been filed on 27.01.2020 - against the order of DCIT, Circle 2(1), Bhubaneswar and case is pending.
M. BUSINESS RATIOS:
Particulars 31.03.2020 31.03.2019 Interest Income as a percentage to Working Funds 6.80 7.12 Non-Interest Income as a percentage to Working Funds 0.35 0.32 Operating Profit as a percentage to Working Funds (-)1.48 (-)1.31 Returns on Assets (-)3.08 (-)1.86 Business (Deposits plus Advances) per employee (in ` lakh) 744.46 683.67 Profit per employee (in ` lakh) (-)16.64 (-)9.27
N. GOVERNMENT GRANTS (AS-12) The Bank has received following support under FI initiatives by NABARD and RBI – i. Rs. 26,13,171/- received towards Financial Literacy Programmes conducted under FIF initiatives of NABARD. ii. Rs. 46,640/- has been received towards reimbursement of IIBF examination fees of BCS. iii. Rs.14,064/- has been received as support from RBI for capacity building training programme of BCs. iv. Rs.75,760/- has been received towards support for conducting village-level RuPay card activation camps in Mayurbhanj and Keonjhar district.
O. EMPLOYEES BENEFIT (AS-15)
The Bank has opted for the Scheme with Insurance Companies for management of Gratuity / Leave Encashment Fund. The amount contributed/provided for gratuity/leave encashment under the said schemes is accounted for in the year of payment as expenses. In Gratuity there is a short fall of `62.50 crore and in Leave Encashment there is a shortfall of `43.38 crore as on 31.03.2020. The Board has approved to replenish the shortfall Gratuity amount in 5 years from 2019-20 to 2023-24. After payment of ` 10.24 crore for the year 2019-20 the shortfall in GLES is `33.14 crore. As per the actuary report, the total pension liability of the Bank is valued at ` 992.47 crores as on 31.03.2019. Out of which, the Bank’s share in EPF to be refunded by eligible employees would be approximately `82.47 crores. Therefore the net pension liabilities comes to ` 910.00 crores. Bank has opted for amortization of the same over a period of 5 years. Accordingly, provision of ` 182.00 crores has been made for the year 2019-20.
P. RELATED PARTY TRANSACTIONS (AS-18) i. The Bank is sponsored by Indian Overseas Bank and Shri Brundaban Nayak, Chairman is the Key Managerial Personnel. Shri Brundaban Nayak has no liability towards the Bank as on 31.03.2020.
ii. Particulars or remuneration of Chairman and General Managers on deputation from Sponsor Bank (Indian Overseas Bank) for the period 01.04.2019 to 31.03.2020 are as under :
(` in lacs) Particulars CHAIRMAN GENERAL MANAGERS a) Salary (including DA & arrears) 19.29 77.73 b) Employer's Contribution to Provident Fund 0.96 3.38 Monetary Value of any benefit and other c) perquisites - 4.01 TOTAL 20.25 85.12
iii. Transactions that have taken place during the period 01.04.2019 to 31.03.2020 with related parties by the Bank are as under : (` In lacs) Details As on As on 31.03.2020 31.03.2019 I) Indian Overseas Bank a. Equity contribution 27738.30 23674.30 b. Interest received from the Bank on deposit 176.73 494.43 c. Interest paid on Borrowings/ IBPC 27.46 499.91 d. Commission paid on account of DD Agency - - e. Balance Outstanding in current account included in Schedule -7 16168.31 5442.15 f. Balance outstanding in SDR and other deposit account included in 4969.58 2375.00 Schedule-7 g. Purchase of Securities - - h. Sale of Securities - - i. IBPC Issued - - II) NABARD a. Interest paid on Borrowings 18.44 88.68 b. Interest received on Investments 55.26 36.68 c. Balance Outstanding on Borrowings included in Schedule-4 69.17 418.21 d. Balance outstanding in SDR and other deposit account included in - - Schedule-8 III) RESERVE BANK OF INDIA a. Interest receivable on current account with RBI - - b. Balance Outstanding in current account included in Schedule-6 36060.87 49792.73
Directors of the Bank Nominee Directors Designation Entity Represented Shri B Nayak Chairman Odisha Gramya Bank Shri S K Patnaik Director Reserve Bank of India Shri A M Tallur Director NABARD Shri S C Mohanta Director Indian Overseas Bank Shri S S Narang Director Indian Overseas Bank Shri S Rout Director Govt. of Odisha
Q. ACCOUNTING OF LEASES (AS-19) The Bank has taken various premises under operating lease with varying lease period. In respect of leasehold land, the lease premium is amortized over the period of lease. The balance amount of lease is disclosed under Other Assets under Schedule -11.
R. DEFERRED TAX ACCOUNTING (AS-22) As per Section 22 of the RRB Act, 1976, for the purpose of the Income –tax Act, 1961 (43 of 1961), or any other enactment for the time being in force relating to any tax on income, profits or gains, a Regional Rural Bank shall be deemed to be a co-operative society. Hence bank has taken stand that section 80P (1) of the Income Tax Act, 1961 i.e. “the gross total income includes any income referred to in sub section (2), there shall be deducted, in accordance with and subject to the provisions of this Section, the sum specified in sub section (2), in computing the total income of the assesse” is applicable. There is no virtual certainty about taxability of its income and hence Deferred Tax Accounting has not been carried out.
S. INTANGIBLE ASSETS (AS-26) The entire Bank has been migrated to integrated Finacle platform on 07.07.2014. Software acquired for CBS purpose has been amortized @33.33% over 3 years in line with AS-26.
T. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29) (` in lacs) Nature of Provision Opening Additional Provision Provision Closing Balance Provision made used reversed Balance during the year during the during the year year i) Provision made towards 46966.56 28452.92 3076.99 - 72342.49 NPA ii)Provision made towards 1101.23 25.84 - - 1127.07 Standard Assets iii) Additional provision for - 198.98 - - 198.98 standard Assets(Covid-19 Regulatory Package) iv) Provision made 8023.51 - - 8023.51 - towards depreciation in the value of investments. v) Provision made towards 1507.28 - - - 1507.28 Income Tax/ Wealth Tax vi) All Other 1545.78 1.53 484.69 10.24 1052.38 a) Robbery/Theft 678.79 - - 10.24 668.55 b) Fraud 129.81 1.53 - - 131.34 c) Suspense 11.14 - - - 11.14 d) Reconciliation 12.91 - - - 12.91 e) Exgratia 151.44 - - - 151.44 f) TDS Receivable 484.69 - 484.69 - - g) Advance Income 77.00 - - - 77.00 Tax
Other Contingent Liabilities (` in lacs) Particulars Balance Liability on account of outstanding forward exchange contracts and - derivatives Guarantees given on behalf of constituents a) In India 3029.06 b) Outside India - Acceptances, Endorsements and Other obligations - DEAF Account 41.84 Other Items for which the bank is contingently liable 3711.13 Total 6782.03
DEAF Account (` in crore) Particulars As on 31.03.2020 As on 31.03.2019
Opening Balance of amounts 0.27 0.14 transferred to DEAF Add: Amounts transferred to DEAF 0.15 0.13 during the year Less: Amounts reimbursed by DEAF 0.00 0.00 towards claim Closing Balance of amounts 0.42 0.27 transferred to DEAF
U. ADDITIONAL DISCLOSURES:
In terms of guidelines issued by the Reserve Bank of India, following are the additional disclosures:
31.03.2020 (a) Gross NPAs to Gross Advances (%) 26.08 (b) Subordinated Debt raised as Tier II Capital (` In lakhs) 1481.41
Floating Provisions
Sl. No. Particulars 2019-20 2018-19 (a) Opening balance in the floating provisions account - - (b) The quantum of floating provisions made in the - - accounting year (c) Amount of draw down made during the accounting - - year (d) Closing balance in the floating provisions account - -
Draw Down from Reserve
Draw down from Reserve during the FY 2019-20 is nil.
Priority Sector Lending Certificates (PSLCs)
The Bank has entered into PSLC transactions under Priority Sector Lending Certificate scheme as under:- (` in lakhs) Sl. Particulars 2019-20 2018-19 No. Purchase Sales Premium Purchase Sales Premium Received Received 1 PSLC – Agriculture ------2 PSLC – Small and - 55000.00 580.00 - - - Marginal Farmers 3 PSLC – Micro ------Enterprises 4 PSLC – General ------
The above disclosure is in line with RBI circular FIDD.CO.Plan.BC.23/04.09.01/2015-16 dated April 7, 2016 on Priority Sector Lending Certificates (PSLC).
COVID19 Regulatory Package- Asset Classification and Provisioning
As per the RBI Circular DOR.No.BP.BC.63/21.04.048/2019-20 dated April 17, 2020, Asset Classification benefit has been extended in respect of accounts in default but standard amounting ` 3979.59 Lakhs for which provision of ` 198.98 lakhs made at the rate of 5% for the quarter ended March 31, 2020. The above provision will be adjusted against the actual provision requirement for slippage from the accounts reckoned for such provision.
V. DISCLOSURE OF PENALTIES IMPOSED BY RBI: Penalties Imposed by RBI Nil
W. INTER BANK TRANSACTIONS: All Inter Bank transactions have been duly reconciled on monthly basis.
X. DISCLOSURE OF COMPLAINTS:
(a) Customer Complaints: Particulars 31.03.2020 No. of complaints pending at the beginning of the year 7 No. of complaints received during the year 132 No. of complaints redressed during the year 139 No. of complaints pending at the end of the year 0
(b) Award passed by the Banking Ombudsman: Particulars 31.03.2020 No. unimplemented awards at the beginning of the year - No. of awards passed by the Banking Ombudsmen during the year - No. of awards implemented during the year - No. of unimplemented awards at the end of the year -
Exposure to sensitive sectors . Capital Market Nil . Commodities Sector Nil
Exposure to Country Risk NA
Disclosure on Risk Exposure in Derivatives Qualitative Disclosures NA Quantitative Disclosures NA Forward Rate Agreement/ Interest Rate Swaps NA Exchange Traded Interest Rate Derivatives NA Foreign Exchange NA
Y. Previous year figures have been re-grouped/re-classified wherever necessary.
For C K Prusty & Associates For Odisha Gramya Bank Chartered Accountants FRN- 323220E
(B Nayak) (S C Mohanta) (D K Barik) (CA C K Prusty) Chairman Director Director Partner M. No. 057318 (R C Sahoo) (S K Das) (S Rout) Director Director Director
Place: Bhubaneswar (G. B. Pradhan) (B. K. Nayak) Date: 29th June, 2020 General Manager Senior Manager (P&T)
STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31ST MARCH, 2020 (` in '000) PARTICULARS For the year ended 31st For the year ended 31st March, 2020 March, 2019
A) CASH FLOW FROM OPERATING ACTIVITIES Net Profit/Loss as per Profit & Loss Account (3959135) (2193880) Adjustment for: Provisions and Contingencies 2064552 646268 Depreciation 78232 70195 Loss/(profit) on sale of land, buildings and other (3617) (2445) assets
Cash Profit generated from Operation (I) (1819968) (1479862) CASH FLOW FROM OPERATING LIABILITIES AND ASSETS Net Increase/(Decrease) of Operating Liabilities i) Deposits from Customers 12924659 9376993 ii) Borrowings from Banks & FIs' 154071 (2357255) iii) Other Operating Liabilities (1265393) 949761 11813337 7969499 Net (Increase) / Decrease on Operating Assets i) Advances to Customers 112173 (6544027) ii) (Increase)/Decrease in Investments (9895836) 203280 ii) Other Assets (929251) 105944 (10712914) (6234803) Net Increase in Operating Liabilities over Operating 1100423 1734696 Assets (II)
NET CASH FLOW FROM OPERATING ACTIVITIES (719545) 254834 (A)=(I+II)
B) CASH FLOW FROM INVESTING ACTIVITIES i) Sale/Disposal of Fixed Assets 3720 2490 ii) Purchase of Fixed Assets (32646) (49020)
NET CASH FLOW FROM INVESTING ACTIVITIES (B) (28926) (46530)
C) CASH FLOW FROM FINANCING ACTIVITIES i) Proceeds of Equity Share Issue - 824000 ii) Proceeds of Tier II Bonds - - iii) Redemption of Tier II Bonds - - iv) Reserves & Surplus - - v) Proposed Dividend (Incld. Dividend Tax) - -
vi) Other Adjustments - - vii) Others (Share Capital Deposit) 645900 217500 NET CASH FLOW FROM FINANCING ACTIVITIES (C) 1469900 217500 TOTAL CASH FLOW DURING THE YEAR (A+B+C) 721429 425804 Cash & Cash equivalents at the Beginning of the Year (I) Cash & Balances with RBI 5388331 4636874 Balances with Banks & Money at call 3589729 3915382 8978060 8552256 Cash & Cash equivalents at the End of the Year (II) Cash & Balances with RBI 4236280 5388331 Balances with Banks & Money at call 5463209 3589729 9699489 8978060
Net Increase/(Decrease) in Cash & Cash equivalents 721429 425804 (I-II)
Note: I) This statement has been prepared in accordance with indirect method as prescribed in AS-3 issued by Institute Of Chartered Accountant Of India.
For C K Prusty & Associates Chartered Accountants FRN- 323220E
Sd/- Place: Bhubaneswar (CA C K Prusty ) Date: 29th June, 2020 Partner Membership No. 057318
INDEPENDENT AUDITOR’S REPORT
To The Members of Odisha Gramya Bank Report on Audit of the Standalone Financial Statements
Opinion 1. We have audited the standalone financial statements of Odisha Gramya Bank, which comprise the Balance Sheet as at 31 March 2020, the Profit and Loss Account and the Statement of Cash Flows for the year then ended, and notes to financial statements including a summary of significant accounting policies and other explanatory information in which are included returns for the year ended on that date of 42 branches audited by us and 330 branches audited by statutory branch auditors. The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Government of India. Also included in the Balance Sheet, the Profit and Loss Account and Statement of Cash Flows are the returns from 177 branches which have not been subjected to audit. These unaudited branches account for 24.99 percent of advances, 29.87 percent of deposits, 12.33 percent of interest income and 29.67 percent of interest expenses. 2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Banking Regulation Act, 1949 in the manner so required for bank and are in conformity with accounting principles generally accepted in India and give: a. true and fair view in case of the Balance Sheet, of the state of affairs of the Bank as at 31st March, 2020 b. true balance of loss in case of Profit and Loss account for the year ended on that date; and c. true and fair view in case of Statement of Cash Flows for the year ended on that date. Basis for Opinion 3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by Institute of Chartered Accountants of India (ICAI). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with ethical requirements that are relevant to our audit of the financial statements in India, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements 4. The Bank’s Board of Directors is responsible with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank of India (‘RBI’) from time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements 5. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the bank to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Other Matter 6. We did not audit the financial statements / information of 507 branches included in the standalone financial statements of the Bank whose financial statements / financial information
reflect total assets of Rs. 4108.07 crores as at 31st March 2020 and total revenue of Rs. 333.96 crores for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of 330 branches have been audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors. 7. We could not visit the branches for the audit due to Covid-19. We have conducted our audit at head office of the Bank through remote access. As a result, we could not physically verify the cash, stationery items and documents relating to the loans and advances of the branches.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements 8. The Balance Sheet and the Profit and Loss Account have been drawn up in accordance with Section 29 of the Banking Regulation Act, 1949; 9. Subject to the limitations of the audit indicated in paragraphs 5 to 7 above, we report that: a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory; b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and c) The returns received from the offices and branches of the Bank have been found adequate for the purposes of our audit.
10. We further report that: a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us. b) the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us; c) the reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report; and d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows comply with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI.
For C K Prusty & Associates Chartered Accountants F.R.N: 323220E
CA C K Prusty (Partner) Membership Number: 057318 Place: Bhubaneswar Date: 29th June, 2020
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