Capital Small Finance Bank Annual Report 2015-16
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Annual Report 2015-16 Expanding Outreach with Local Touch Vishwas Se Vikas Tak Our Vision To provide superior banking service, focused on customers' needs. To contribute to the economic development of the area by innovative ideas, technology and new products. To maintain a long lasting and trustworthy relationship with the local community. Annual Report 2015-16 | 01 Our Vision To provide superior banking service, focused on customers' needs. To contribute to the economic development of the area by innovative ideas, technology and new products. To maintain a long lasting and trustworthy relationship with the local community. Annual Report 2015-16 | 01 Board Members Board Committees Chairman (Part-time) Chief Operating Officer Management Committee Special Committee on Frauds Inder Krishan Sardana & Company Secretary Inder Krishan Sardna Inder Krishan Sardana Munish Jain Sarvjit Singh Samra Sarvjit Singh Samra Managing Director Bhagwant Singh Sangha Bhagwant Singh Sangha Sarvjit Singh Samra Chief Financial Officer Sukhpal Singh Gill Sahil Vijay Credit Sanctioning Committee Directors Sarvjit Singh Samra Stakeholders Relationship Committee Santokh Singh Chhokar Auditors Bhagwant Singh Sangha Inder Krishan Sardana Bhagwant Singh Sangha M/s V.P. Vijh & Co. Ranbir Singh Sarvjit Singh Samra Sukhpal Singh Gill Chartered Accountants Ranbir Singh Ranbir Singh Jalandhar Audit Committee Madan Gopal Sharma Madan Gopal Sharma Corporate Social Responsibility Committee Harmesh Khanna Bhagwant Singh Sangha Sarvjit Singh Samra Rakesh Soni Sukhpal Singh Gill Bhagwant Singh Sangha Ranbir Singh Ranbir Singh Risk Management Committee Investor Grievance Redressal Committee Sarvjit Singh Samra Sarvjit Singh Samra Bhagwant Singh Sangha Bhagwant Singh Sangha Sukhpal Singh Gill Ranbir Singh Nomination and Remuneration Committee Securities Allotment Committee Bhagwant Singh Sangha Inder Krishan Sardana Madan Gopal Sharma Sarvjit Singh Samra Sukhpal Singh Gill Bhagwant Singh Sangha Rakesh Soni Securities Transfer Committee Sarvjit Singh Samra Bhagwant Singh Sangha Sukhpal Singh Gill 02 | Annual Report 2015-16 Annual Report 2015-16 | 03 Board Members Board Committees Chairman (Part-time) Chief Operating Officer Management Committee Special Committee on Frauds Inder Krishan Sardana & Company Secretary Inder Krishan Sardna Inder Krishan Sardana Munish Jain Sarvjit Singh Samra Sarvjit Singh Samra Managing Director Bhagwant Singh Sangha Bhagwant Singh Sangha Sarvjit Singh Samra Chief Financial Officer Sukhpal Singh Gill Sahil Vijay Credit Sanctioning Committee Directors Sarvjit Singh Samra Stakeholders Relationship Committee Santokh Singh Chhokar Auditors Bhagwant Singh Sangha Inder Krishan Sardana Bhagwant Singh Sangha M/s V.P. Vijh & Co. Ranbir Singh Sarvjit Singh Samra Sukhpal Singh Gill Chartered Accountants Ranbir Singh Ranbir Singh Jalandhar Audit Committee Madan Gopal Sharma Madan Gopal Sharma Corporate Social Responsibility Committee Harmesh Khanna Bhagwant Singh Sangha Sarvjit Singh Samra Rakesh Soni Sukhpal Singh Gill Bhagwant Singh Sangha Ranbir Singh Ranbir Singh Risk Management Committee Investor Grievance Redressal Committee Sarvjit Singh Samra Sarvjit Singh Samra Bhagwant Singh Sangha Bhagwant Singh Sangha Sukhpal Singh Gill Ranbir Singh Nomination and Remuneration Committee Securities Allotment Committee Bhagwant Singh Sangha Inder Krishan Sardana Madan Gopal Sharma Sarvjit Singh Samra Sukhpal Singh Gill Bhagwant Singh Sangha Rakesh Soni Securities Transfer Committee Sarvjit Singh Samra Bhagwant Singh Sangha Sukhpal Singh Gill 02 | Annual Report 2015-16 Annual Report 2015-16 | 03 Financial Highlights Our Achievements (` in crores) Business Analysis 2015-16 2014-15 2013-14 CAGR Deposits 1814.13 1506.78 1264.14 19.79% 1 2 Advances 1148.40 929.30 757.61 23.12% Pioneer in bringing Promoting 3 state-of-the-art banking financial Total Business 2962.53 2436.08 2021.75 21.05% Extension of banking services facilities in rural areas inclusion to the unbanked villages at low cost. in the Net Worth 114.84 89.51 79.77 19.98% through Branches and area of Suvidha Kendras operation (Brick & Mortar B.C. outlets). since 4 inception by Profitability Analysis 2015-16 2014-15 2013-14 CAGR 7 Day Branch Banking providing 5 6 from day one with easy access Gross Revenue 202.33 171.99 140.73 19.90% extended and of banking Maintaining Business uninterrupted banking services a high Credit CAGR of Net Interest Income 62.68 54.62 46.23 16.43% hours. to the masses. Deposit Ratio more than of above 63%. 21%. Operating Profit 21.26 19.26 18.70 6.63% Net Profit 13.74 14.22 10.61 13.80% 7 One-stop financial hub in rural and semi urban areas. Ratio Analysis 2015-16 2014-15 2013-14 8 9 10 CASA % 35.16% 35.72% 37.94% Contribution towards Surpassed Average business per economic development national branch of `63 Crores. Return on Average Equity 13.44% 16.80% 14.05% and employment targets in generation in the area. Priority Sector, Return on Average Assets 0.74% 0.92% 0.84% Agriculture and Weaker 12 Interest Spread 3.70% 3.87% 4.02% 11 Section Ranked as no.1 in Banking Sector Net Interest Margin 3.37% 3.53% 3.65% Advances. amongst India's 100 best companies to Accredited with ‘ICAI’ work for 2016 for second consecutive EPS (`) 6.70 7.23* 6.14 award for excellence in year by 'Great Place to Work Institute' financial reporting for in India. Book Value Per Share (`) 49.89 51.85 50.83 two consecutive years. Capital Adequacy Ratio 17.20% 15.22% 15.01% Gross NPAs % 0.73% 0.39% 0.36% Net NPAs % 0.45% 0.13% 0.09% 1st Small Finance Bank in India to start operations Dividend % 16% 16% 10% *Restated EPS 04 | Annual Report 2015-16 Annual Report 2015-16 | 05 Financial Highlights Our Achievements (` in crores) Business Analysis 2015-16 2014-15 2013-14 CAGR Deposits 1814.13 1506.78 1264.14 19.79% 1 2 Advances 1148.40 929.30 757.61 23.12% Pioneer in bringing Promoting 3 state-of-the-art banking financial Total Business 2962.53 2436.08 2021.75 21.05% Extension of banking services facilities in rural areas inclusion to the unbanked villages at low cost. in the Net Worth 114.84 89.51 79.77 19.98% through Branches and area of Suvidha Kendras operation (Brick & Mortar B.C. outlets). since 4 inception by Profitability Analysis 2015-16 2014-15 2013-14 CAGR 7 Day Branch Banking providing 5 6 from day one with easy access Gross Revenue 202.33 171.99 140.73 19.90% extended and of banking Maintaining Business uninterrupted banking services a high Credit CAGR of Net Interest Income 62.68 54.62 46.23 16.43% hours. to the masses. Deposit Ratio more than of above 63%. 21%. Operating Profit 21.26 19.26 18.70 6.63% Net Profit 13.74 14.22 10.61 13.80% 7 One-stop financial hub in rural and semi urban areas. Ratio Analysis 2015-16 2014-15 2013-14 8 9 10 CASA % 35.16% 35.72% 37.94% Contribution towards Surpassed Average business per economic development national branch of `63 Crores. Return on Average Equity 13.44% 16.80% 14.05% and employment targets in generation in the area. Priority Sector, Return on Average Assets 0.74% 0.92% 0.84% Agriculture and Weaker 12 Interest Spread 3.70% 3.87% 4.02% 11 Section Ranked as no.1 in Banking Sector Net Interest Margin 3.37% 3.53% 3.65% Advances. amongst India's 100 best companies to Accredited with ‘ICAI’ work for 2016 for second consecutive EPS (`) 6.70 7.23* 6.14 award for excellence in year by 'Great Place to Work Institute' financial reporting for in India. Book Value Per Share (`) 49.89 51.85 50.83 two consecutive years. Capital Adequacy Ratio 17.20% 15.22% 15.01% Gross NPAs % 0.73% 0.39% 0.36% Net NPAs % 0.45% 0.13% 0.09% 1st Small Finance Bank in India to start operations Dividend % 16% 16% 10% *Restated EPS 04 | Annual Report 2015-16 Annual Report 2015-16 | 05 CONTENTS Managing Director's Note ........................................... 08 Directors' Report ......................................................... 10 Extract of Annual Return .............................................. 29 Management Discussion Analysis ................................. 37 Product & Services ...................................................... 46 Auditors' Report .......................................................... 47 Annual Accounts Balance Sheet ........................................................................ 52 Profit and Loss Account ........................................................... 53 Cash Flow Statement .............................................................. 54 Schedules .................................................................. 55 Significant Accounting Policies ..................................... 60 Notes on Accounts ..................................................... 64 06 | Annual Report 2015-16 Annual Report 2015-16 | 07 CONTENTS Managing Director's Note ........................................... 08 Directors' Report ......................................................... 10 Extract of Annual Return .............................................. 29 Management Discussion Analysis ................................. 37 Product & Services ...................................................... 46 Auditors' Report .......................................................... 47 Annual Accounts Balance Sheet ........................................................................ 52 Profit and Loss Account ........................................................... 53 Cash Flow Statement .............................................................. 54 Schedules .................................................................. 55 Significant