DIRECTORS’ REPORT
The Board of Directors of Odisha Gramya Bank have the pleasure in presenting the 9h Annual Report of the Bank along with the Audited Balance Sheet as on 31st March, 2021 and Profit & Loss Account for the Financial Year 2020-21, 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 - 6 26 32 - - 32 Balasore 3 4 46 53 - - 53 Bhadrak 1 2 27 30 - - 30 Cuttack 7 3 39 49 - - 49
Dhenkanal - 4 26 30 - - 30 Jagatsinghpur - 2 26 28 - - 28
Jajpur - 2 38 40 - - 40 Kendrapara - 4 25 29 - - 29 Khurda 16 5 34 55 - - 55
Keonjhar - 8 40 48 - - 48
Mayurbhanj 5 3 70 78 - - 78 Nayagarh - 1 25 26 - - 26 Puri 5 3 43 51 - - 51 Total 37 47 465 549 - - 549
3. Capital: Share Capital: As on 31.03.2021, the Authorized Capital of the Bank is `20000000 thousand and Paid-up Capital is `8616686 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 430834260 4308343 2. Indian Overseas Bank 301583007 3015830 3. Govt. of Odisha 129251298 1292513 Total 861668565 8616686
4. Deposits:
Deposits of the Bank stood at `134899591 thousand registering a growth of 7.16% over the last financial year. The CASA constitutes 47.56% of total deposits. The category wise break-up of deposits for last two years is as under: (` in ‘000) As on 31/03/2021 As on 31/03/2020 Type of Deposit No. of Amount No. of Amount Accounts Accounts Current Deposits 11824 969113 11365 983789 Savings Bank Deposits 5282541 63191504 4998922 57215576 Term Deposits 686368 70738974 706535 67689389 Total Deposits 5980733 134899591 5716822 125888754 % of Low Cost deposits 47.56 46.23 Average cost of deposits (%) 4.65 5.26 Average deposits per branch 245719 229306 Average deposits per 56800 52917 employee Average deposits per account 22.56 22.02
CASA campaigns were observed for 10 days in each month during January, February and March 2021, which resulted in total CASA growth by `469.50 crore. 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) During the FY 2020-21, Bank has availed refinance `100.00 crore from NABARD and `15.70 crore from NSTFDC. Bank has repaid the refinance availed on due dates to NABARD and NSTFDC without any default. The details of scheme-wise refinance limits sanctioned, amount availed and amount repaid during the year and outstanding thereof as on 31.03.2021 are as under:
A. From NABARD (` in ‘000) Outstanding Limit Utilization Repayment Outstanding as on sanctioned made Category made during as on 31/03/2020 during the during the the year 31/03/2021 year year S.T. (SAO) - 900000 900000 - 900000 S.T. (OSAO) - - - - - M.T. (Non-Sch.) - - - - - M.T. (Sch) 6917 - - 4967 1950 LTCRF - 100000 100000 - 100000 Total 6917 1000000 1000000 4967 1001950 B. From Sponsor Bank: (` in ‘000) Limit Utilization Repayment Outstanding Outstanding as sanctioned made Category made during as on on 31/03/2020 during the during the the year 31/03/2021 year year S.T. (SAO) - 2000000 1692470 1692470 - S.T. (OSAO) - - - - - M.T. (Non-Sch.) - - - - - Total - 2000000 1692470 1692470 -
C. From NSTFDC: (` in ‘000) Limit Utilization Repayment Outstanding as Outstanding as sanctioned made Category made during on on 31/03/2020 during the during the the year 31/03/2021 year year S.T. (SAO) 190000 157021 157021 29199 317822
(II) Cost of borrowing is 3.65 % as on 31.03.2021 vis– a-vis 7.89% as on 31.03.2020.
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 31/03/2021 As on 31/03/2020 Cash held by the Bank 461890 630193
*Average Cash held 482579 483595
*Average Deposits 129424430 119301282 Average cash as % to average deposits 0.37 0.40 Balance with RBI in Current Account 4374226 3606087 Balance in Current Account with other Banks 1406502 1982137 *Average indicates the average of month end outstanding.
8. Investments:
Bank has laid down a sound investment policy approved by the Board which complies with the norms and guidelines prescribed to RRBs by Reserve Bank of India. An Investment Committee is also constituted meets regularly to decide the investment proposals to meet the requirement of SLR and Non-SLR Investments. The Treasury Department of our Sponsor Bank at Chennai is also guiding us in the matter of trading in Treasury Bills/ Other Investments.
SLR and Non- SLR Investment of the Bank as on 31st March 2021 stood at `78630947 thousand. The investment pattern as on 31st March 2021 and 31st March 2020 are as follows. The average yield on investment is 6.76%. (` in ‘000) Outstanding as on Outstanding as on Category 31/03/2021 31/03/2020
SLR Investment 74876804 70957635 Out of which Govt. & other approved securities 74876804 70957635 Non-SLR Investment 100000 100000 Term deposit with other Banks 3654143 3481072 Total Investments 78630947 74538707
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 31/03/2021 stood at `57201972 thousand registering a growth of 11.68 % over the previous year. Sector wise details of outstanding are as under: (` in ‘000) Outstanding as on Outstanding as on Sector 31/03/2021 31/03/2020 ST Crop/ KCC including Jewel Loan (Ag ) 14364143 13520277 Agrl. Term Loans 2667006 2636010 Agrl. Allied Activities 4120601 3461159 Total Agriculture 21151750 19617446 Rural Artisans/SMEs 2063542 1847657 Others P.S. Advances 28330083 23120190 A. Total Priority Sector Advances 51545375 44585293 B. Total Non-priority Sector Advances 5656597 6632262 Total Advances (A+B) 57201972 51217555 Percentage of Priority Sector Advances 90.11 87.05 CD Ratio (%) 42.40 40.68
Loans granted under SHG and other government sponsored schemes are furnished below: (` in ‘000) Schemes Disbursement during the FY 2020-21 Outstanding as on 31/03/2021
NRLM 9518290 13368484
OSFDC 20547 112536
10. Loans disbursed during the year: During the financial year, Bank has disbursed `20210616 thousand as against the projection of `23000000 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 5739465 95.66 566491 9.87 Agril. Term Loans 500000 489423 97.88 139108 28.42 Agril Allied Activities 1000000 1101625 110.16 372112 33.78 Total Agriculture Loan 7500000 7330513 97.74 1077711 14.70 Rural Artisans/SMEs 1500000 1265807 84.39 40641 3.21 Other Priority Sector 10000000 9011338 90.11 2157296 23.94 A. Total Priority 19000000 17607658 92.67 3275648 18.60 Sector Advances B. Total Non-Priority 4000000 2602958 65.07 1434692 55.12 Sector Advances Total Disbursement 23000000 20210616 87.87 4710340 23.31 (A+B)
(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 2020-21, 13221 fresh KCCs have been sanctioned involving an amount of `682223 thousand. The total outstanding under KCC as on 31/03/2021 is `10823715 thousand. (b) Self Help Group: Financing Self Help Groups (SHGs) is one of the thrust areas of the Bank. During the financial year, SHGs have been financed by the Bank with a credit flow of `9518290 thousand. As on 31.03.2021, total outstanding under SHG finance is `13635721 thousand against 107967 accounts. Cumulatively, the Bank has so far credit linked to 423462 SHGs. During the year 2020-21, 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. Bank has received Award of Excellence being Best Performing Bank in implementation of Mission Shakti Loans of Govt. of Odisha for the year 2020-21 and Best Banker Award from Agricultural Department, Government of Odisha for performance under Agriculture sector.
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 31/03/2021 31/03/2021 31/03/2020 31/03/2020 A Standard Assets 42906784 128702 37858694 132605 B Sub - Standard Assets 2676463 267646 3046561 304656 C Doubtful Assets 11517147 7748253 10213368 6830661 D Loss Assets 101578 101578 98932 98932 E Total NPA (B+C+D) 14295188 8117477 13358861 7234249 F Total Assets (A+E) 57201972 8246179 51217555 7366854
b) Interest Derecognized: An interest amount of ` 14969 thousand is derecognized during the year 2020-21. 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 31/03/2021 as on 31/03/2020 Standard Assets 128702 132605 Non-Performing Assets 8117477 7234249 Investment 42901 - Other Provisions: (Total) 256762 255966 Fraud 12972 13134 Robbery/Theft 66868 66855 Reconciliation 1291 1291 Ex-Gratia 15144 15144 Income Tax 150728 150728 Advance Income Tax 7700 7700 Suspense 2059 1114
d) NPA Movement: (` in ‘000) Current Year Previous Year Category (2020-21) (2019-20) NPA at the beginning of the year (A) 13358861 12353809 Additions to NPA during the year (B) 2743113 6806001 Recovery against NPAs during the year (C) 1806786 5800949 NPA at the end of the year (A+B-C) 14295188 13358861 Net NPA (NPAs net of provision) 6177711 6124612 Net Advances (Gross Advance - Provision on NPA) 49084495 43983306 Net NPA as % of Net advance 12.59 13.92 Gross NPA (%) 24.99 26.08
e) Recovery of Loans: All General Managers at Head Office have been allotted different Regions for monitoring and follow-up of NPA reduction. Periodical special review meeting of Regional Managers are conducted by GM Sponsor bank. Cluster wise review meetings in all the Regions are being organized for one-to-one review of all the Branch by RMs /GMs /Chairman. Branches are maintaining village-wise NPA register, Daily NPA recovery Register, Daily NPA follow up register for effective follow up and recovery. Village wise meeting of the borrowers have been conducted for recovery and mobilization of OTS. A task force consisting of 4 to 5 members has been formed in each Regional Office to monitor and regulate NPA. Special KCC renewal camps were organized with the help of BCAs to maximize KCC renewal. Bulk SMS facility has been introduced by the Bank to send text messages to the defaulting borrowers about their dues. f) One Time Settlement (OTS): Bank has board approved Loan Recovery Policy and Special OTS Scheme for settlement of maximum accounts through OTS where all avenue have been failed and the chance of further recovery is bleak. During the FY 2020-21 Bank has settled 41766 accounts with settlement amount of ` 138.30 crore and recovered ` 78.98 crore through OTS.
Sector wise Demand Collection Balance (DCB) position as on 30.06.2020 is furnished below. (` In ‘000) Sector Farm Sector Non-Farm Sector Total Demand 9544441 18022526 27566967 Collection 6320859 13987527 20308386 Balance Overdue 3223582 4034999 7258581 Recovery Percentage 66.23 77.61 73.67
Age-wise and sector wise classification of overdue loans as on 30/06/2020 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 25017 16914 12527 12922 11719 7087 86186 Accounts Amount 1037214 621842 454901 575370 409888 174371 86186 Non-Farm Sector No. of 24790 17019 23714 16895 15453 15150 113021 Accounts Amount 1133408 702036 629809 667117 347951 504674 3984995 Total (Farm Sector + Non-Farm Sector) No. of 49807 33933 36241 29817 27172 22237 199207 Accounts Amount 2170622 1323878 1084710 1242487 757839 679045 7258581
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 74325 43258 71 91 Claims settled - - - -
12. CERSAI All equitable mortgages eligible for addition of security interest have been registered with CERSAI as on 31.03.2021. During the reporting year, 459 equitable mortgages have been registered with CERSAI.
13. Priority Sector Lending Certificates (PSLC) As per RBI master circular FIDD.CO.Plan.BC.23/04.09.01/2015-16 dated April 7, 2016 on Priority Sector Lending Certificates (PSLC), trading on e-Kuber portal is an on-going process. All traded PSLCs will expire by March 31st and will not be valid beyond the reporting date (i.e. March 31st), irrespective of the date it was sold.
According to the RBI instructions on trading in “Priority Sector Lending Certificates” through CBS e- Kuber portal, we have started trading on e-Kuber portal for the financial year 2019-20 from 11.03.2020. Our Bank has earned income of `16.74 crore from sale of PSLC during FY 2020-21 as compared to `5.80 crore earned during previous year.
14. Write Off of Loans: (` in ‘000) Write off Yr. 2020-21 Yr. 2019-20 Number of Accounts 21332 16119 Amount 516192 307699
15. Income Earned: (` in ‘000) Income Yr. 2020-21 Yr. 2019-20 Income earned from Advances 4058247 3838033 Income earned from Investments 4982732 4562332 Income earned from Inter Bank Deposits 215018 306917 Income earned from others 254 34 Income earned from Non-Fund business 1076316 442756 Total Income 10332567 9150072
16. Expenditure Incurred: (` in ‘000) Expenditure Yr. 2020-21 Yr. 2019-20 Interest Paid on deposit 6016425 6276169 Interest paid on borrowings 18895 3812 Operating Expenses 4968947 4764674 Provisions and Contingencies 1439215 2064552
Total Expenditure 12443482 13109207
Working Results: (` in ‘000) Net Results Yr. 2020-21 Yr. 2019-20 Net Profit/Loss (-)2110915 (-)3959135
17. Key Financial Indicators / Ratios: (` in ‘000) Category Yr. 2020-21 Yr. 2019-20 Average Working Fund (AWF)* 137743247 128055665 i) Financial Return (%) 6.72 6.80 [Interest Earned as % of AWF] ii) Financial Cost (%) 4.38 4.90 [Interest Expended as % of AWF] iii) Financial Margin (%) (i-ii) 2.34 1.90 iv) Operating Expenses as % of AWF 3.61 3.72 v) Misc. Income as % of AWF 0.78 0.35 vi) Operating Margin as % of AWF (-)0.49 (-)1.48 vii) Risk Cost (%) 1.04 1.61 [Provision Cost as % of AWF] viii) Net Margin (%) (vi-vii) (-)1.53 (-)3.09 ix) Yield on Advances (%) 7.67 7.66 x) Yield on Investment (%) 6.76 6.98 xi) Cost of Deposits (%) 4.65 5.26 xii) Cost of Borrowings (%) 3.65 7.89 *AWF is calculated by adding averages of month end outstanding of Investments, Advances, Cash & Bank balances and Interest receivables.
18. 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.
19. Achievements under DAP / MOU: The performance of the Bank vis-à-vis MOU signed between the Bank and Sponsor Bank as on 31/03/2021 is given below: (` in ‘000) Parameters Target Achievement Deposits 138477600 134899591 Borrowings 190000 1319772 Advances 56378600 57201972 Disbursement 23000000 20210616 Recovery (%) 76.00 73.67 Investments 89808700 78630947 Working Result (-)2135555 (-)2110915 Gross NPA 11782500 14295188
20. 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.
21. 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. and United India 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. 22. Human Resources Development: As at the end of 31st March 2021, total staff strength of the Bank is 2375 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 58 Officers Scale II 216 Officers Scale I 967 Office Assistant 1010 Office Attendant 120 Total: 2375 Representation of SC/ST in Staff strength as on 31.03.2021
Particulars Total staff as on 31.03.2021 SC/ST as on 31.03.2021 Officer 1245 294 Office Assistant 1010 418 Office Attendant 120 48 Total: 2375 760
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.
ODISHA GRAMYA BANK EMPLOYEES PENSION CELL:
Pursuant to the order dated 25th April 2018 of the Hon’ble Supreme Court in SPL(C) -39288/2012 regarding grant of pension to the employees of RRBs; Department of Financial Services, Ministry of Finance, Govt. of India vide its letter F. No. 8/20/2010-RRB dated 23rd October 2018 communicated approval of the RRB (Employees’) Pension Regulation, 2018 and RRB (Officers & Employees’) Service (Amendment) Regulations, 2018 after consultation with NABARD and sponsor Bank.
The Hon’ble Board of Directors in their meeting dated 01/11/2018 adopted Odisha Gramya Bank (Employees’) Pension Regulations, 2018 and Odisha Gramya Bank (Officers & Employees) Service (Amendment) Regulations, 2018 which were published in Gazette of India, Extraordinary, Part – III, – Section 4 on 12th December 2018.
A Pension Cell under HR Department is formed at the Head Office to undertake all the necessary steps to facilitate operationalization and stabilization of pension scheme. To facilitate Payment of Pension / Family pension our Bank constituted a fund called Odisha Gramya Bank (Employees’) Pension Fund under an Irrevocable Trust. 1516 Pensioners/ Family Pensioners are getting pension every month.
Bank transferred fund of `173.29 Crore of provision to trust in the current financial year out of which ` 20 Crore paid upto Mar’2021. Recruitments: During the year 2020-21, recruitments in different cadre have been made as under: Category Total number Officers Scale II - Officers Scale I 153 Office Assistant 48 Promotions: During the year 2020-21, promotions in different cadre have been accomplished as under: Category Total number From Officers Scale II to Scale III 11 From Officers Scale I to Scale II 28 From Office Assistant to Officers Scale I 38 From Office Attendant to Office Assistant 04 Staff Welfare Measures: As a goodwill gesture on the wake of COVID-19, ` 1000/- has been paid to all the staff members irrespective of their cadre towards the reimbursement cost of Mask, Hand gloves, Sanitizer etc.
Bank has also introduced an ex-gratia scheme for payment of ` 20 lakh towards compensation amount in the event of unfortunate death of any staff member due to COVID-19. 23. 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, 86 Officers and 46 Office Assistants have been provided with required training.
24. 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.
25. Computerization: Bank is in CBS system with integrated database and the DC server connected to all 549 branches, 9 ROs, 17 CCOs and Head Office. IT Operation Status Finacle 7.0.18 is Bank’s Core Banking Software. Bank is in process to migrate the Core Banking to Finacle 10.x. 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 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 (both Inward and Outward) branch channel and DSC integrated PFMS. M/s Tube light Communication is the service provider for SMS and IVRS services. Bank is an Indirect Member of NPCI/NFS/CTS through the Sponsor Bank and direct member with UIDAI. Bank has upgraded its all branch networks to 256Kbps for migration to Finacle 10.x. Bank has 125 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 (credit) is on-lined in the bank. As of now in 17 clearing centers are on CTS platform. Bank has introduced RuPay Debit Cards. As on date 12.36 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. Information Security (IS) Audit and Vulnerabilities and Penetration Testing (VAPT) audit are being done on regular interval for all application at DC, DR and public website. The latest audit was done between the month of November 2020 and February 2021. Bank is in process to implement SBMS for Government of Odisha, NACH auto debit for auto EMI credit to Customer’s loan account in OGB. For enhance security, Bank is in process to implement Active Directory for user and access management. For customer service, Bank is in process to implement Integrated Voice Recognition System (IVRS) to provide facility for Balance Inquiry, Debit cum ATM card host listing.
26. Financial Inclusion Programme: PMJDY Account & RuPay Cards Distribution: 13,88,946 PMJDY accounts are opened with mobilization of `653.77 Crore low cost deposits, out of which 1,03,358 are zero balance account constituting 7.44% of total PMJDY accounts. 6,09,876 RuPay Cards have been issued to PMJDY account holders.
Aadhaar & Mobile seeding: 77.07% of the operative SB accounts have been seeded with Aadhaar numbers and 74.77% of the accounts have been seeded with mobile numbers.
In PMJDY accounts, 81.07% of the accounts are Aadhaar seeded and 75.37% of the accounts are mobile seeded. Providing Doorstep Banking through ICT based Solutions: 705 BCs are deployed in unbanked SSAs under our command area, out of which all the BCs are using UIDAI registered devices (Micro ATMs).
29,74,093 transactions amounting to `836.29 Crore have been effected through Micro ATMs during FY 2020-21.
Mode of Transactions Provided: AEPS transactions for both deposits & withdrawals for both on-us and off-us Non-AEPS account based transactions for Deposits Pin Pad transactions for withdrawals
Social Security Schemes: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):- 314515 account holders have been enrolled under the scheme. Death claims in respect of 1401 PMJJBY cases have been settled. Pradhan Mantri Suraksha Bima Yojana (PMSBY):- 746137 account holders have been enrolled under the scheme. Accidental claims in respect of 108 PMSBY cases have been settled. Atal Pension Yojana (APY): In this Micro Pension scheme, 96912 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 a total of 137 Financial Literacy Camps through FLCC 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 31.03.2021, total 7324 customers have availed Aadhaar related services from Aadhaar enrollment centers. Bank has enrolled 1017 new Aadhaars during the financial year.
27. Internal Inspection and House Keeping: During the year, 367 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 413 branches out of 435 branches sanctioning Jewel Loans. Concurrent audit is in place in 183 branches as well as in Head Office. 192 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. Concurrent Audit: As a part of internal control system in our bank, concurrent Audit has been conducted in 183 branches with the help of 76 empaneled audit firms in the financial year 2020-21.
IS Audit: IS Audit has been conducted for 182 branches during the financial year 2020-21.
Revenue Audit: Revenue audit has been conducted for 247 branches during the financial year and income leakages of `50.77 lakhs as detected, has been recovered.
Management Audit: The management audit of our Bank as of 31.03.2020, has been conducted by our Sponsor Bank, IOB during 08.02.2021 to 13.02.2021.
NABARD inspection under section 35(6) of the BR Act, 1949 The NABARD audit has been conducted as of 31.03.2020 during 07.10.2020 to 23.10.20220 and the report was received on 05.12.2020. Compliance submitted on 27.01.2021 and further compliance submitted on 07.06.2021.
28. Right To Information Act, 2005: The RTI Act, 2005 is implemented as per the directives of GOI, in Odisha Gramya Bank since its commencement. General Manager, Law Department is designated as CPIO (Central Public Information Officer) whereas the Chairman of the Bank is designated as the Appellate Authority under the Act. Various types of information sought under the act are being provided within the prescribed time frame. During the year 2020-21, Bank received and disposed of 97 applications under RTI Act. 29. 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
30. 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 2020, 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 31.03.2021, the Board of Directors of the Bank are as follows:-. Shri Mohan M, Chairman, Odisha Gramya Bank
Shri Susil Chandra Mohanta, General Manager, Indian Overseas Bank, Central Office, Chennai.
Shri Dillip Kumar Barik, Deputy General Manager, Indian Overseas Bank, Regional Office, Bhubaneswar.
Shri Ramachandra Sahoo, Deputy General Manager, NABARD, Regional Office, Bhubaneswar.
Shri Sunil Kumar Das, Deputy General Manager, Reserve Bank of India, Regional Office, Bhubaneswar.
Dr Pragyansmita Sahoo, 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 2020-21.
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, 2021 are attached to this report.
For and on behalf of Board of Directors of Odisha Gramya Bank
Sd/- (Mohan M) Bhubaneswar Chairman 23rd June, 2021
Encl: As above
PERFORMANCE OF THE BANK AT A GLANCE (AMOUNT IN ` '000) Sl. No. 2020-21 2019-20 2018-19
A. KEY PERFORMANCE INDICATORS 1 No. of Districts covered 13 13 13 2 No. of Branches 549 549 549 a) Rural 465 471 471 b) Semi-urban 47 50 50 c) Urban 37 28 28 d) Metropolitan - - - 3 Total Staff (Excluding Sponsor Bank staff) 2375 2379 2366 Of which Officers 1245 1174 1192 4 Deposits 134899591 125888754 112964095 Growth % 7.16 11.44 9.05 5 Borrowings Outstanding 1319772 196917 42846 Growth % 570.22 359.59 (98) 6 Gross loan and advances outstanding 57201972 51217556 48792135 Growth % 11.68 4.97 4.54 Of 6 above, loans to priority sector 51545375 44584293 42120656 Of 6 above, loans to NTG 19876214 17818588 17477343 Of 6 above, loans to SC/ST 5875689 5189241 4806025 Of 6 above, loans to SF/MF/AL 18916591 15513179 14754742 Of 6 above, loans to minorities 916827 828912 741640 7 C.D. RATIO 42.40 40.68 43.19 8 Investment Outstanding 78630947 74538707 64841231 Growth % 5.49 14.96 (1.79) SLR Investment O/s 74876804 70957635 61679150 Non-SLR investment O/s 3754143 3581072 3162081 B. AVERAGES 9 Average Deposits 129424430 119301282 108077586 Growth % 8.49 10.38 7.83 10 Average Borrowings 517015 660736 1337806 Growth % (21.75) (50.61) (75.72) 11 Average Gross loans & Advances 52938213 50102741 47224085 Growth % 5.66 6.10 6.77 12 Average Investments 76944646 69762327 63837419 Growth % 10.30 9.28 0.52 Average SLR Invt. 73306353 65314505 61191984 Average Non-SLR Invt. 3638293 4447823 2645435 Average SLR Invt. As % to Avg. Deposits 56.64 54.75 56.62 Average Non-SLR Invt. As % to Avg. Deposits 2.81 3.73 2.45 13 Average Working Funds 137743247 128055665 118519070 C. LOANS ISSUED DURING THE YEAR 14 Loans issued during the year 20210616 22809961 23247880 Growth % (11.40) (1.88) (3.27) Of 14 above, loans to Priority sector 17607658 17986442 20123263 Of 14 above, loans to NTG 4710340 5658456 5652424 Of 14 above, loans to SC/ST 1006124 1139036 2327113 Of 14 above, loans to SF/MF/AL 6681763 1191409 3694088 Of 14 above, loans to Minorities 217019 244931 192957
D. PRODUCTIVITY 15 Per Branch 349912 322598 294638 Per Staff 80885 74446 68367 E. RECOVERY PERFORMANCE 16 Total Recovery Demand 27566967 29053823 24280028 Recovery 20308386 21517527 18821192 Over dues 7258581 7536296 5458836 Recovery % (June position) 73.67 74.06 77.52 17 Farm Sector Demand 9544441 9824550 8265681 Recovery 6320859 6602246 5875029 Over dues 3223582 3222304 2390652 Recovery % (June position) 66.23 67.20 71.08 18 Non-Farm Sector Demand 18022526 19229273 16014347 Recovery 13987527 14915281 12946163 Over dues 4034999 4313992 3068184 Recovery % (June position) 77.61 77.57 80.84 F. ASSET CLASSIFICATION 19 a) Standard 42906784 37858694 36438326 b) Sub-standard 2676463 3046561 2647525 c) Doubtful 11517147 10213368 9601940 d) Loss 101578 98932 104344 Total 57201972 51217555 48792135 20 Std. Assets as % Gross Loans & Adv. O/s 75.01 73.92 74.68 G. PROFITABILITY ANALYSIS 21 Interest paid on: a) Deposits 6016425 6276169 5913745 b) Borrowings 18895 3812 74406 22 Staff Expenses 4168826 3991570 3696845 23 Other operating expenses 800121 773104 681704 24 Provisions made during the year a) Against NPAs (Including write off) 1399420 2845292 1005408 b) Other provisions 39795 (780740) (359140) 25 Interest received on a) Loans and Advances 4058247 3838033 3887068 b) SLR Invts/Money at Call/Non SLR investment 4982732 4562332 4383823
c) Inter Bank Term Deposit 215018 306917 172127 d) Others 254 34 38 26 Misc. Income 1076316 442756 376032 27 Profit/Loss (2110915) (3959135) (2193880) H. OTHER INFORMATION 28 Additional Captal Received 794700 1469900 288400 29 DICGC a) Claims settled cumulative - - - b) Claims recvd. But pending adjustment - - - c) Claims pending with corporation - - -
30 Cumulative Provision - - a) Against NPAs 8117477 7234249 4696656 b)Against PAs 128702 132605 110123 c) Against Investment 42901 - 802351 d)Against intangible assets, fraud etc 256762 255966 305306 31 Interest derecognised a) During the year 14969 35681 34953 b) Cumulative 14969 35681 34953 32 Loans written off during the year a) No. of a/cs 21332 16119 8714 b) Amount 516192 307699 231637 33 Accumulated loss 12371173 10260258 6301123 34 Reserves 558354 558354 558354
ODISHA GRAMYA BANK
FORM 'A' BALANCE SHEET AS ON 31ST MARCH, 2021
CAPITAL & LIABILITIES SCHEDULE As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Capital 1 8616686 6764086 Share Capital Deposit 1A - 1057900 Reserves and Surplus 2 558354 558354 Deposits 3 134899591 125888754 Borrowings 4 1467913 345058 Other Liabilities and Provisions 5 7082872 5349620 TOTAL 152625416 139963772
ASSETS SCHEDULE As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Cash and Balance 6 4836116 4236280 with Reserve Bank of India Balance with banks and Money at 7 5060645 5463209 Call & Short Notice Investments 8 74933903 71057635 Advances 9 49084495 43983306 Fixed Assets 10 173326 213621 Other Assets 11 18536931 15009721 TOTAL 152625416 139963772 Contingent Liabilities 12 806497 678203 Bills for Collection - -
For C K Prusty & Associates For Odisha Gramya Bank Chartered Accountants FRN 323220E Sd/- Sd/- Sd/- Sd/- (CA C K Prusty) (Mohan M) (S C Mohanta) (D K Barik) M. No. 057318 Chairman Director Director Partner Absent Sd/- Sd/- (R C Sahoo) (B Patra) (P Sahoo) Director Director Director Sd/- Sd/- (B K Patra) (B K Nayak) Place: Bhubaneswar General Manager Senior Manager (P&T) Date: 23rd June, 2021
ODISHA GRAMYA BANK
FORM 'B' PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2021 Year ended Year ended SCHEDULE 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` I. INCOME thousand) thousand) Interest Earned 13 9256251 8707316 Other Income 14 1076316 442756 TOTAL 10332567 9150072 II. EXPENDITURE Interest Expended 15 6035320 6279981 Operating Expenses 16 4968947 4764674 Provisions and Contingencies 1439215 2064552 TOTAL 12443482 13109207 Year ended Year ended SCHEDULE 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` III. PROFIT / LOSS thousand) thousand) Profit / Loss for the year before Income (2110915) (3959135) Tax Provision Income Tax Provision - - Profit / Loss for the year after Income Tax (2110915) (3959135) Provision Profit/Loss(-) brought forward (10260258) (6301123) TOTAL (12371173) (10260258) 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 (12371173) (10260258) Sheet TOTAL NET OF RESERVE (12371173) (10260258)
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) (Mohan M) (S C Mohanta) (D K Barik) M. No. 057318 Chairman Director Director Partner Absent Sd/- Sd/- (R C Sahoo) (B Patra) (P Sahoo) Director Director Director Sd/- Sd/- (B K Patra) (B K Nayak) Place: Bhubaneswar General Manager Senior Manager (P&T) Date: 23rd June, 2021
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2021 SCHEDULE-1 CAPITAL As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Authorised Capital (200,00,00,000 shares of ` 10/- each) 20000000 20000000 Issued Capital (86,16,68,565 shares of ` 10/- each) 8616686 6764086 Subscribed Capital (86,16,68,565 shares of ` 10/- each) 8616686 6764086 Called-up Capital (86,16,68,565 shares of ` 10/- each) 8616686 6764086 Paid up Capital (86,16,68,565 shares of ` 10/- each) 8616686 6764086 TOTAL: 8616686 6764086
SCHEDULE-1A SHARE CAPITAL DEPOSIT As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) Indian Overseas Bank (Sponsor bank) - 406400 Government of India - 580600 Government of Odisha - 70900 TOTAL: - 1057900
SCHEDULE-2 RESERVES & SURPLUS As on 31.03.2021 As on 31.03.2020 (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, 2021 SCHEDULE-3 DEPOSITS
As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) A. I. Demand Deposits 969113 983789 i) From Banks 99 165 ii) From others 969014 983624 II. Saving Bank Deposits 63191504 57215576 III. Term Deposits 70738974 67689389 i) From Banks - - ii) From others 70738974 67689389 TOTAL (I,II and III) 134899591 125888754 B. i) Deposits of branches in India 134899591 125888754 ii) Deposits of branches outside India - - TOTAL: 134899591 125888754
SCHEDULE-4 BORROWINGS
As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Borrowings in India 1467913 345058 i) Reserve Bank of India - - ii) Sponsor Bank - - iii) Other Institutions and Agencies (NABARD, NSTFDC) 1319772 196917 iv) Others - - v) Hybrid debt capital instruments 148141 148141 II. Borrowings Outside India - - TOTAL (I and II) 1467913 345058 Secured borrowings included in I and II above - -
SCHEDULE-5 OTHER LIABILITIES AND PROVISIONS As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Bills payable 78614 72126 II. Inter-office adjustments (net) 21618 10907 III. Interest accrued 465311 539463 IV. Contingent Provision against Standard Assets 128702 112707 V. Contingent Provision against Standard Assets (As per COVID19 - 19898 Regulatory Package) VI. Others including provisions 6388627 4594519 TOTAL: 7082872 5349620
SCHEDULE-6 CASH AND BALANCES WITH RESERVE BANK OF INDIA
As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Cash in hand (including foreign currency notes) 461890 630193 II. Balances with Reserve Bank of India i) In Current Account 4374226 3606087 ii) In other Accounts - - TOTAL: (I and II) 4836116 4236280
SCHEDULE-7 BALANCE WITH BANKS AND MONEY AT CALL & SHORT NOTICE
As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) I. In India (Figures in ` (Figures in ` thousand) thousand) i) Balances with banks a) In Current Accounts 1406502 1982137 b) In Term Deposits with other banks 3654143 3481072 TOTAL: 5060645 5463209 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: 5060645 5463209
SCHEDULE-8 INVESTMENTS As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Investments in India i) Government securities 74833903 70957635 ii) Other approved securities - - iii) Shares & Mutual funds - - iv) Debentures and Bonds (NCDs) - - v) Subsidiaries and/or Joint Ventures - - vi) Others (Term Money Borrowing with NABARD) 100000 100000 TOTAL: 74933903 71057635 II. Investments outside India i) Government securities (including local authorities) - - ii) Subsidiaries and/or Joint Ventures abroad - - GRAND TOTAL: 74933903 71057635 Gross Investments 74976804 71057635 Provision for Depreciation on Investment 42901 -
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2021 SCHEDULE-9 ADVANCES As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) A. i) Bills purchased and discounted 207 - ii) Cash credits and overdrafts and loans repayable on 25421564 24009060 demand iii) Term Loans 23662724 19974246 TOTAL: 49084495 43983306 B. i) Secured by Tangible Assets 47349573 41996759 ii) Covered by Bank/Govt.Guarantees 1036374 1238233 iii) Unsecured 698548 748314 TOTAL: 49084495 43983306 C. I. Advances in India i) Priority sectors 41496193 36122545 ii) Public Sector 2339331 2536062 iii) Banks - - iv) Others 5248971 5324699 TOTAL: 49084495 43983306 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) 49084495 43983306 Gross Advance 57201972 51217555 Provision for Bad & Doubtful Debts 8117477 7234249 Advances O/s position is shown net of NPA provisions.
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2021
SCHEDULE-10 FIXED ASSETS As on 31.03.2021 As on 31.03.2020 (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 (10407) (8516) TOTAL: (I) 65223 67114 II. Other Fixed Assets (Including furniture & fixtures) At cost as on 31st March of the preceding year 901882 901882 Additions during the year 20930 30936 Deductions during the year (105) (103) Depreciation to date (846755) (788991) TOTAL: (II) 106785 143724 III. Software (Intangible) At cost as on 31st March of the preceding year 103901 102191 Additions during the year - 1710 Deductions during the year - - Depreciation to date (102583) (101118) TOTAL: (III) 1318 2783 TOTAL: (I,II&III) 173326 213621
SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2021 SCHEDULE-11 OTHER ASSETS As on 31.03.2021 As on 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Inter-Office adjustments (net) - - II. Interest receivable 1602568 1735942 III. Interest Subvention receivable from Govt. 325621 656410 IV. Tax paid in advance/tax deducted at source 102158 103063 V. Stationery and stamps 13923 18562 VI. Non-banking assets acquired in satisfaction of claims - - VII. Accumulated Loss 12371173 10260258 VIII. Others 4121488 2235486 TOTAL: 18536931 15009721
SCHEDULE-12 CONTINGENT LIABILITIES As on 31.03.2021 As on 31.03.2020 (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 425543 302906 b) Outside India - - V. Acceptances, endorsements and other obligations - - VI. Other items for which the banks is contingently liable a) DEAF Account 4706 4184 b) Income Tax Demand 315721 315721 c) Civil Suit Claim 60527 55392
TOTAL: 806497 678203
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2021
SCHEDULE-13 INTEREST EARNED Year ended Year ended 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Interest / discount on advances / bills 4058247 3838033 II. Income on investment 4982732 4562332 III. Interest on balance with Reserve Bank of India & Other inter- 215018 306917 bank funds IV. Others 254 34 TOTAL: 9256251 8707316
SCHEDULE-14 OTHER INCOME Year ended Year ended 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Commissions, exchange and brokerage 56585 49758 II. Profit on sale of investments 532005 92410 Less: Loss on sale of investments - - III. Profit on revaluation of investments - - IV. Profit on sale of land, building and other assets 2537 3617 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 485189 296971 TOTAL: 1076316 442756
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2021
SCHEDULE-15 INTEREST EXPENDED Year ended Year ended 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Interest on deposits 6016425 6276169 II. Interest on Reserve Bank of India/ Inter-bank borrowings 8370 1968 III. Others a. NABARD 10525 1844 TOTAL: 6035320 6279981
SCHEDULE-16 OPERATING EXPENSES Year ended Year ended 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Payments to and provisions for employees 4168826 3991570 II. Rent, taxes and lighting 92900 86971 III. Printing and Stationery 26846 20831 IV. Advertisement and Publicity 174 122 V. Depreciation on Bank's property 61119 78232 VI. Director's fees, allowances and expenses - 13 VII. Auditors' fees & expenses (including branch auditors) 3926 3897 VIII. Law charges 1868 1961 IX. Postages, Telegram, Telephones etc. 7399 7882 X. Repairs, maintenance and CBS 86657 99362 XI. Insurance 149339 114149 XII. Other expenditure 369893 359684 TOTAL: 4968947 4764674
SCHEDULE-16A PROVISIONS AND CONTINGENCIES Year ended Year ended 31.03.2021 31.03.2020 (Current Year) (Previous Year) (Figures in ` (Figures in ` thousand) thousand) I. Provision for NPAs 883228 2537593 II. Provision for Standard Assets (3903) 22482 III. Bad Debts written off 516192 307699 IV. Provision for Depreciation on Investments 42901 (802351) V. Provision for Fraud (162) 153 VI. Provision for Robbery 14 (1024) VII. Provision for Suspense 945 - TOTAL: 1439215 2064552
SCHEDULE FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2021
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
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 by the employer 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/superannuation is based on actuarial valuation at the year-end. However, additional liability accrued during the year on account of pension liability 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 Sd/- Sd/- Sd/- (Mohan M) (S C Mohanta) (D K Barik) (CA C K Prusty) Chairman Director Director Partner M. No. 057318 Absent Sd/- Sd/- (R C Sahoo) (B Patra) (P Sahoo) Director Director Director
Sd/- Sd/- Place: Bhubaneswar (B K Patra) (B K Nayak) Date: 23rd June, 2021 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 2021
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 lakhs and Paid-up Capital is `86166.86 lakhs 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: (` in Lakhs) Sl. No. Name of Share Holder No. of Shares Share capital 1. Govt. of India 430834260 43083.43 2. Indian Overseas Bank 301583007 30158.30 3. Govt. of Odisha 129251298 12925.13 Total 861668565 86166.86 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, 2021 are:
ITEMS As on 31.03.2021 As on 31.03.2020 Capital to Risk Weighted Asset Ratio-(Overall) % (-)7.61 (-)4.91
Capital to Risk Weighted Asset Ratio-Tier-I % (-)7.61 (-)4.91 Capital to Risk Weighted Asset Ratio-Tier-II % - - 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 ` 21109.15 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 Lakhs) Particulars As on 31.03.2021 As on 31.03.2020 1. Value of Investments excluding TDR: Gross value of investments 749768.04 710576.35 Provisions for depreciation 429.01 - Net Value of investments 749339.03 710576.35 2. Movement of provisions held towards depreciation on investments: Opening balance - 8023.51 Add: Provisions made during the year 429.01 - Less: Write off/write back of excess - (8023.51) provisions during the year Closing balance 429.01 -
ii) Repo Transactions: (` in Lakhs) Item Minimum Maximum Daily Average As on outstanding outstanding outstanding 31.03.2021 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 Lakhs) 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 Lakhs) Shares & Mutual Fund - Debentures - Others (NABARD Term Money Borrowings) 1000.00 Total 1000.00
v) Non-Performing Non-SLR Investments: (` in Lakhs) Particulars As on 31.03.2021 As on 31.03.2020 Opening balance - - Additions during the year - - Reduction during the above period - - Closing balance - - Total provisions held - -
E. NON-PERFORMING ASSETS (NPAs): (` in Lakhs) Particulars 31.03.2021 31.03.2020 Net NPA to Net Advances (%) 12.59 13.92 Movement of NPAs (Gross) Opening balance 133588.61 123538.09 Additions during the year 27431.13 68060.01 Reductions during the year (18067.86) (58009.49) Closing balance 142951.88 133588.61 Movement of Net NPAs Opening balance 61246.12 76571.53 Additions during the period 24688.02 61254.01 Reductions during the period (24157.03) (76579.42) Closing balance 61777.11 61246.12 Movement of provisions for NPAs (excluding provision on standard assets) Opening balance 72342.49 46966.56 Provisions made during the period 13994.20 28452.92 Write-back of excess provisions/ write off (5161.92) (3076.99) Closing balance 81174.77 72342.49
F. DETAILS OF LOAN ASSETS SUBJECTED TO RESTRUCTURING (` in Lakhs) Sl. Particulars 31.03.2021 31.03.2020 No. i Total amount of loan assets subjected to 62074.41 469.58 restructuring, rescheduling, renegotiation; ii The amount of Standard assets subjected to 61973.48 - restructuring, rescheduling, renegotiation; iii The amount of Sub-Standard assets subjected 100.93 469.58 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 Lakhs) 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 Lakhs) 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 lakhs) 1. No. of accounts sold - 2. Aggregate outstanding - 3. Aggregate consideration received -
Provisions on Standard Asset: (` in lakhs) Particulars 31.03.2021 31.03.2020 Provisions towards Standard Assets 1287.02 1127.07 Additional provision for standard Assets - 198.98 (Covid-19 Regulatory Package) Total Provision towards Standard Assets 1287.02 1326.05
Amount of NPAs (Gross) (` in lakhs) Particulars 31.03.2021 31.03.2020 Sub standard 26764.63 30465.61 Doubtful 1 23296.84 16213.69 Doubtful 2 32668.23 31869.06 Doubtful 3 59206.40 54050.93 Loss 1015.78 989.32 Total 142951.88 133588.61
H. CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs
Concentration of Deposits (` in crore) Total Deposits of twenty largest depositors 254.49 Percentage of deposits of twenty largest depositors to total deposits 1.89 of the bank
Concentration of Advances (` in crore) Total Advances of twenty largest borrowers 322.59 Percentage of Advances to twenty largest borrowers to total 5.64 advances of the bank
Concentration of Exposures (` in crore) Total Exposures of twenty largest borrowers/customers 577.08 Percentage of Exposures of twenty largest borrowers/customers to 3.00 total exposures of the bank on borrowers / customers
Concentration of NPAs (` in crore) Total outstanding of top four NPA Accounts 31.25 Percentage of top four NPA accounts to total NPA of the bank 2.19
I. Sector wise NPAs (` in crore) Sl Sector 2020-21 2019-20 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 & 2115.18 650.36 30.75 1961.74 620.65 31.64 Allied Activities 2 Advances to Industries Sector 1661.33 291.03 17.52 1160.31 278.66 24.02 eligible as priority sector lending 3 Services 1378.04 403.57 29.29 1336.48 370.63 27.73 4 Personal Loans ------Sub-Total (A) 5154.54 1344.96 26.09 4458.53 1269.94 28.48 B Non-Priority Sector 1 Agriculture and ------allied activities 2 Industry ------3 Services 409.50 55.63 13.58 514.10 37.98 7.38 4 Personal Loans 156.16 28.93 18.53 149.13 27.97 18.76 Sub-Total (B) 565.66 84.56 14.95 663.23 65.95 9.94 Total (A+B) 5720.20 1429.52 24.99 5121.76 1335.89 26.08
II. Movement of NPAs
Particulars (` in crore) Gross NPAs as on 1st April 2020 ( Opening Balance) 1335.89 Addition (Fresh NPAs) during the year 274.31 Sub-Total (A) 1610.20 Less: (i) Up gradations 17.87 (ii) Recoveries 111.20 (iii) Write offs 51.61 Sub -Total (B) 180.68 Gross NPAs as on 31st March 2021 (Closing Balance) (A-B) 1429.52
I. ASSET LIABILITY MANAGEMENT Maturity pattern of certain items of assets and liabilities as at March 31, 2021: (` 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 378.53 409.82 472.29 555.55 1132.60 3338.83 3257.38 3944.96 13489.96 Advances 315.03 422.06 395.87 444.19 962.51 1797.26 709.30 673.98 5720.20 Investments 85.03 0.00 57.76 97.40 166.86 521.03 514.51 6420.50 7863.09 Borrowings 0.99 0.00 1.61 2.81 94.21 16.26 12.98 3.12 131.98 Foreign ------currency assets Foreign ------currency liabilities
J. EXPOSURES – EXPOSURE TO REAL ESTATE SECTOR (` in lakhs) a) Direct exposure 31.03.2021 31.03.2020 i) Lending fully secured by mortgages on residential property 20656.61 20949.75 that is or will be occupied ii) Out of the above limit sanctioned for more than ₹ 25 lacs 2125.75 2299.73 iii) Commercial Real Estate: 281.70 352.11 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 lakhs) Particulars 2020-21 2019-20 Provision for Income Tax - -
(b) List of various demands pending with Income Tax Authorities are as under: Erstwhile Neelachal Gramya Bank Sl Financial Assessment Particulars Demand No year 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 12,56,77,550/- passed 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 `9,50,66,078/- 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 7,33,06,840/- pending.
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 31.03.2021 31.03.2020 Interest Income as a percentage to Working Funds 6.72 6.80 Non-Interest Income as a percentage to Working Funds 0.78 0.35 Operating Profit as a percentage to Working Funds (-)0.49 (-)1.48 Returns on Assets (-)1.53 (-)3.08 Business (Deposits plus Advances) per employee (in ` lakh) 808.85 744.46 Profit per employee (in ` lakh) (-)8.89 (-)16.64
N. GOVERNMENT GRANTS (AS-12) The Bank has received following support under FI initiatives by NABARD and RBI – i. `5,77,298/- received from NABARD towards re-imbursement of FLC camps expenditure for conducting 137 nos. of FLCs through FLCC. ii. `1,61,00,527/- has been received towards procurement of VSAT units including UPS batteries.
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 `11.52 crore and in Leave Encashment there is a shortfall of `15.83 crore as on 31.03.2021. The Board has approved to replenish the shortfall Gratuity amount in 6 years from 2018-19 to 2023-24. As per the actuary report, the total pension liability of the Bank is valued at ` 840.88 crores as on 31.03.2021. Out of which, Fund balance as on 31.03.2021 is `321.01 crores. Net amount comes to ` 519.87 crores which are to be provided in 3 years @ `173.29 crores. Accordingly, provision of `173.29 crores has been made for the year 2020-21.
P. RELATED PARTY TRANSACTIONS (AS-18) i. The Bank is sponsored by Indian Overseas Bank and Shri Mohan M, Chairman is the Key Managerial Personnel and he has no liability towards the Bank as on 31.03.2021. ii. Particulars or remuneration of Chairman and General Managers on deputation from Sponsor Bank (Indian Overseas Bank) for the period 01.04.2020 to 31.03.2021are as under :
(` in lakhs) Particulars CHAIRMAN GENERAL MANAGERS a) Salary (including DA & arrears) 22.11 103.09 b) Employer's Contribution to Provident Fund 1.19 5.41 Monetary Value of any benefit and other c) perquisites 2.53 7.99 TOTAL 25.83 116.49
iii. Transactions that have taken place during the period 01.04.2020 to 31.03.2021 with related parties by the Bank are as under : (` In lacs) Details As on As on 31.03.2021 31.03.2020 I) Indian Overseas Bank a. Equity contribution 30158.30 27738.30 b. Interest received from the Bank on deposit 604.01 176.73 c. Interest paid on Borrowings 11.22 27.46 d. Commission paid on account of DD Agency - - e. Balance Outstanding in current account included in Schedule -7 10659.27 16168.31 f. Balance outstanding in SDR and other deposit account included in 12920.47 4969.58 Schedule-7 g. Purchase of Securities - - h. Sale of Securities - - i. IBPC Issued - - II) NABARD a. Interest paid on Borrowings 105.25 18.44 b. Interest received on Investments 43.38 55.26 c. Balance Outstanding on Borrowings included in Schedule-4 10019.50 69.17 d. Balance outstanding in SDR and other deposit account included in 1000.00 1000.00 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 43742.26 36060.87
Directors of the Bank Nominee Directors Designation Entity Represented Shri Mohan M Chairman Odisha Gramya Bank Shri Sunil Kumar Das Director Reserve Bank of India Shri Ramachandra Sahoo Director NABARD Shri Sushil Ch. Mohanta Director Indian Overseas Bank Shri Dillip Kumar Barik Director Indian Overseas Bank Dr Pragyansmita Sahoo 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. SEGMENT REPORTING (AS-17) i. There is only one Business Segment i.e. Retail Banking operation. ii. There is only one Geographic Segment i.e. Domestic.
S. 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.
T. 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. Details has been mentioned in schedule-10.
U. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS-29) (` in lakhs) 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 72342.49 13994.20 5161.92 - 81174.77 NPA ii) Provision made towards 1326.05 - - 39.03 1287.02 Standard Assets iii) Provision made - 429.01 - - 429.01 towards depreciation in the value of investments. iv) Provision made 1507.28 - - - 1507.28 towards Income Tax/ Wealth Tax v) All Other (Total) 1052.38 9.58 1.62 1060.34 a) Robbery/Theft 668.55 0.13 668.68 b) Fraud 131.34 1.62 129.72 c) Suspense 11.14 9.45 20.59 d) Reconciliation 12.91 - - - 12.91 e) Exgratia 151.44 - - - 151.44 g) Advance Income 77.00 - - - 77.00 Tax
Other Contingent Liabilities (` in lakhs) Particulars Balance Liability on account of outstanding forward exchange contracts and - derivatives Guarantees given on behalf of constituents a) In India 4255.43 b) Outside India - Acceptances, Endorsements and Other obligations - DEAF Account 47.06 Income Tax demand 3157.21 Civil Suit Claim 605.27 Total 8064.97
DEAF Account (` in crore) Particulars As on 31.03.2021 As on 31.03.2020
Opening Balance of amounts 0.42 0.27 transferred to DEAF Add: Amounts transferred to DEAF 0.05 0.15 during the year Less: Amounts reimbursed by DEAF 0.00 0.00 towards claim* Closing Balance of amounts 0.47 0.42 transferred to DEAF * Actual amount reimbursed by DEAF towards claims during the year 2020-21 is `7,157/- vis-à-vis `17,852/- during the year 2019-20.
V. ADDITIONAL DISCLOSURES:
In terms of guidelines issued by the Reserve Bank of India, following are the additional disclosures:
31.03.2021 (a) Gross NPAs to Gross Advances (%) 24.99 (b) Subordinated Debt raised as Tier II Capital (₹ In lakhs) 1481.41
Floating Provisions
Sl. No. Particulars 2020-21 2019-20 (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 2020-21 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 2020-21 2019-20 No. Purchase Sales Premium Purchase Sales Premium Received Received 1 PSLC-Agriculture - 15000.00 213.50 - - - 2 PSLC-Small and - 55000.00 1091.75 - 55000.00 580.00 Marginal Farmers 3 PSLC-Micro - 27500.00 259.00 - - - Enterprises 4 PSLC-General - 17500.00 110.00 - - - Total - 115000.00 1674.25 - 55000.00 580.00
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). COVID-19 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 and DOR.No.BP.BC.71/21.04.048/2019-20 dated May 23, 2020, COVID19 Regulatory Package-Asset Classification and Provisioning are as under:
Sl No Benefit details Amount involved (` in lakhs) 1 SMA/ overdue categories, where the moratorium/deferment 10958.71 was extended 2 Asset classification benefits is extended 3979.59 Provisions made during the Q-4, FY 2019-20 198.98 3 Provisions made during the Q-1, FY 2020-21 170.07 4 Provisions adjusted during the respective accounting periods 297.73 against slippages. 5 Residual provisions 71.32
W. DISCLOSURE OF PENALTIES IMPOSED BY RBI: Penalties Imposed by RBI Nil
X. INTER BANK TRANSACTIONS: All Inter Bank transactions have been duly reconciled on monthly basis.
Y. DISCLOSURE OF COMPLAINTS:
(a) Customer Complaints: Particulars 31.03.2021 No. of complaints pending at the beginning of the year 0 No. of complaints received during the year 195 No. of complaints redressed during the year 175 No. of complaints pending at the end of the year 20
(b) Award passed by the Banking Ombudsman: Particulars 31.03.2021 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
Z. Previous year figures have been re-grouped/re-classified wherever necessary.
For C K Prusty & Associates For Odisha Gramya Bank Chartered Accountants FRN- 323220E Sd/- Sd/- Sd/- (Mohan M) (S C Mohanta) (D K Barik) (CA C K Prusty) Chairman Director Director Partner M. No. 057318 Absent Sd/- Sd/- (R C Sahoo) (B Patra) (P Sahoo) Director Director Director
Sd/- Sd/- Place: Bhubaneswar (B K Patra) (B K Nayak) Date: 23rd June, 2021 General Manager Senior Manager (P&T)
STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31ST MARCH, 2021 (` in '000) PARTICULARS For the year ended 31st For the year ended 31st March, 2021 March, 2020
A) CASH FLOW FROM OPERATING ACTIVITIES Net Profit/Loss as per Profit & Loss Account (2110915) (3959135) Adjustment for: Provisions and Contingencies 1439215 2064552 Depreciation 61119 78232 Loss/(profit) on sale of land, buildings and other (2537) (3617) assets
Cash Profit generated from Operation (I) (613118) (1819968) CASH FLOW FROM OPERATING LIABILITIES AND ASSETS Net Increase/(Decrease) of Operating Liabilities i) Deposits from Customers 9010837 12924659 ii) Borrowings from Banks & FIs' 1122855 154071 iii) Other Operating Liabilities 294037 (1265393) 10427729 11813337 Net (Increase) / Decrease on Operating Assets i) Advances to Customers (5101189) 112173 ii) (Increase)/Decrease in Investments (3876268) (9895836) ii) Other Assets (1416294) (929251) (10393751) (10712914) Net Increase in Operating Liabilities over Operating 33978 1100423 Assets (II)
NET CASH FLOW FROM OPERATING ACTIVITIES (579140) (719545) (A)=(I+II)
B) CASH FLOW FROM INVESTING ACTIVITIES i) Sale/Disposal of Fixed Assets 2642 3720 ii) Purchase of Fixed Assets (20930) (32646)
NET CASH FLOW FROM INVESTING ACTIVITIES (B) (18288) (28926)
C) CASH FLOW FROM FINANCING ACTIVITIES i) Proceeds of Equity Share Issue 794700 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 NET CASH FLOW FROM FINANCING ACTIVITIES (C) 794700 1469900 TOTAL CASH FLOW DURING THE YEAR (A+B+C) 197272 721429 Cash & Cash equivalents at the Beginning of the Year (I) Cash & Balances with RBI 4236280 5388331 Balances with Banks & Money at call 5463209 3589729 9699489 8978060 Cash & Cash equivalents at the End of the Year (II) Cash & Balances with RBI 4836116 4236280 Balances with Banks & Money at call 5060645 5463209 9896761 9699489
Net Increase/(Decrease) in Cash & Cash equivalents 197272 721429 (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: 23rd June, 2021 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 2021, 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 47 branches audited by us and 296 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 206 branches which have not been subjected to audit. These unaudited branches account for 24.94 percent of advances, 29.85 percent of deposits, 11.27 percent of interest income and 29.15 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, 2021 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 502 branches included in the standalone financial statements of the Bank whose financial statements / financial information reflect total assets of Rs. 4524.38 crores as at 31st March 2021 and total revenue of Rs. 347.52 crores for the year ended on that date, as considered in the standalone financial statements. The financial statements / information of 296 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
Sd/- CA C K Prusty (Partner) Membership Number: 057318 Place: Bhubaneswar Date: 23rd June, 2021