Jeeef<e&keÀ efjHeesì& 2016-17 Deveg¬eÀceefCekeÀe INDEX ¬eÀ. efJe<e³e met®eer Contents He=þ ke´À. No. Page No. 1. efveosMekeÀ ceb[ue Board of Directors 2 2. cenehe´yebOekeÀieCe General Managers 3 3. he´yebOe efveosMekeÀ SJeb meerF&Dees keÀe keÀLeve Statement of Managing Director & CEO 4 4. he´ieefle SkeÀ ve]pej ceW Progress at a glance 7 5. efveosMekeÀeW keÀer efjheesì& Directors’ Report 8 - he´yebOeve ®e®ee& Deewj efJeMues<eCe - Management Discussion and Analysis 8 - Je<e& 2016-17 keÀe keÀe³e& efve<heeove - Performance in 2016-17 8 - yeQkeÀ keÀer cenlJehetCe& ³eespeveeSb / heefj³eespeveeSb - Important Schemes/Projects of the Bank 20 - efveieefcele meeceeefpekeÀ oeef³elJe - Corporate Social Responsibility 22 - Deie´Ceer yeQkeÀ ³eespevee - Lead Bank Scheme 23 - mene³ekeÀ kebÀheefve³eeb/meb³egÊeÀ GÐece Deewj he´e³eesefpele mebmLeeSb - Subsidiaries/Joint Ventures and Sponsored Institutions 24 - jepeYee<ee veerefle keÀe keÀe³ee&vJe³eve - Implementation of Official Language Policy 26 - efveosMekeÀeW keÀer efpeccesoejer keÀe keÀLeve - Directors’ Responsibility Statement 27 - efveosMekeÀ ceb[ue ceW heefjJele&ve - Changes in the Board of Directors 27 - J³eJemee³e GÊejoeef³elJe efjHeesì& - Business Responsibility Report 28 - DeeYeej - Acknowledgements 28 6. keÀeheexjsì ieJeveXme efjheesì& Corporate Governance Report 29 7. mebef#eHle leguevehe$e Abridged Balance Sheet 54 8. mebef#eHle ueeYe Je neefve uesKee Abridged Profit & Loss Account 55 9. cenlJehetCe& uesKee veerefle³eeb Significant Accounting Policies 56 10. KeeleeW hej efìhheefCe³eeb Notes on Accounts 62 11. vekeÀoer he´Jeen keÀe efJeJejCe Cash Flow Statement 93 12. uesKee hejer#ekeÀeW keÀer efjheesì& Auditors’ Report 95 13. mebef#eHle mecesefkeÀle efJeÊeer³e efJeJejCe Abridged Consolidated Financial Statements 97 14 ¨¸ì ¨¸¸¢«¸ÄˆÅ ¬¸¸š¸¸£µ¸ ¤¸¾“ˆÅ ˆÅ¸ ›¸¸½¢’¬¸ ¬¸¿¥¸Š›¸ NOTICE FOR 14TH ANNUAL GENERAL MEETING ENCLOSED meebefJeefOekeÀ uesKee hejer#ekeÀ STATUTORY AUDITORS ke=Àles heejKe Sb[ kebÀheveer ˆ¼Å÷¸½ ‡.‚¸£. ¬¸º¥¸¸‰¸½ ‡¿” ˆ¿Åœ¸›¸ú ˆ¼Å÷¸½ ˆÅ¸½“¸£ú ‡¿” ˆ¿Åœ¸›¸ú ˆ¼Å÷¸½ ¬¸ú‡Ÿ¸‚¸£‡¬¸ ‡¿” meveoer uesKeekeÀej meveoer uesKeekeÀej ¬¸›¸™ú ¥¸½‰¸¸ˆÅ¸£ ‡¬¸¸½¢¬¸‡’ì¸, ‡¥¸‡¥¸œ¸ú pe³ehegj hegCes keÀesuekeÀelee ¬¸›¸™ú ¥¸½‰¸¸ˆÅ¸£ hegCes for Parakh & Co. for A.R. Sulakhe & Co. for KOTHARI & Co. Chartered Accountants Chartered Accountants for CMRS & Associates, LLP Chartered Accountants Jaipur Pune Chartered Accountants Kolkata Pune (œÏš¸¸›¸ ˆÅ¸¡¸¸Ä¥¸¡¸ : `¥¸¸½ˆÅŸ¸¿Š¸¥¸', 1501, ¢©¸¨¸¸]¸ú›¸Š¸£, œ¸ºµ¸½ 411 005) (Head Office: 'Lokmangal', 1501, Shivajinagar, Pune - 411 005) 1 Annual Report 2016-17 efveosMekeÀ ceb[ue / BOARD OF DIRECTORS 31-03-2017 keÀer efmLeefle kesÀ Devegmeej / As on 31-03-2017 ªú ‚¸£. œ¸ú. Ÿ¸£¸“½ Shri R. P. Marathe œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ ‡¨¸¿ ¬¸úƒÄ‚¸½ Managing Director & CEO ªú ‚¸£. ˆ½Å. Š¸ºœ÷¸¸ Shri R. K. Gupta ªú ‡. ¬¸ú. £¸„÷¸ Shri A. C. Rout ˆÅ¸¡¸Äœ¸¸¥¸ˆÅ ¢›¸™½©¸ˆÅ Executive Director ˆÅ¸¡¸Äœ¸¸¥¸ˆÅ ¢›¸™½©¸ˆÅ Executive Director ªú ‚÷¸ú©¸ ¢¬¸¿í ªú ]¸ú. ªúˆºÅŸ¸¸£ ªú œÏ½Ÿ¸\¸›Í ‡. ¬¸½“ú Shri Ateesh Singh Shri G. Sreekumar Shri Premchandra A. Sethi ªú ‚¸£. ÷¸¸Ÿ¸¸½š¸£µ¸ ”¸Á. ‚\¸Ä›¸¸ ‚¸£. š¸¸½¥¸¢ˆÅ¡¸¸ ªú ™ú›¸™¡¸¸¥¸ ‚ŠÏ¨¸¸¥¸ Shri R. Thamodharan Dr. Archana R. Dholakia Shri Deendayal Agrawal 2 Jeeef<e&keÀ efjHeesì& 2016-17 cenehe´yebOekeÀieCe / GENERAL MANAGERS 31-03-2017 keÀer efmLeefle kesÀ Devegmeej / As on 31-03-2017 ªú œ¸ú. ‡›¸. ™½©¸œ¸¸¿”½ ªú ›¸¿™ˆºÅŸ¸¸£ ¨¸ú. œ¸º]¸¸£ú ªú ›¸£½›Í ˆÅ¸¤¸£¸ ªú ‡Ÿ¸. ¬¸ú. ˆºÅ¥¸ˆÅµ¸úÄ Shri P. N. Deshpande Shri Nandkumar V. Pujari Shri Narender Kabra Shri M. C. Kulkarni ªú £¸]¸¢ˆÅ£µ¸ ž¸¸½ƒÄ£ ªú Ÿ¸›¸¸½]¸ ¢¤¸¬¨¸¸§ ªú ‚¸£. ‡\¸. ûÅ”µ¸ú¬¸ ªú ¬¸ú. ˆ½Å. ¨¸Ÿ¸¸Ä Shri Rajkiran Bhoir Shri Manoj Biswal Shri R. H. Phadnis Shri C. K. Verma ªú ‡¬¸. ]¸ú. ¢\¸÷¸§½ ªú ’ú. ¨¸ú. £Ÿ¸µ¸ Ÿ¸»÷¸úÄ ªú ‚¸£. ˆ½Å. œ¸¸µ”½¡¸ (Ÿ¸º‰¡¸ ¬¸÷¸ˆÅÄ÷¸¸ ‚¢š¸ˆÅ¸£ú) Shri S. G. Chitale Shri T. V. Raman Murthy Shri R. K. Pandey (C.V.O.) 3 Annual Report 2016-17 ªú ‚¸£. œ¸ú. Ÿ¸£¸“½ Shri R. P. Marathe œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ ‡¨¸¿ ¬¸úƒÄ‚¸½ Managing Director & CEO œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ ‡¨¸¿ ¬¸úƒÄ‚¸½ ˆÅ¸ ˆÅ˜¸›¸ STATEMENT OF MANAGING DIRECTOR & CEO ¢œÏ¡¸ ©¸½¡¸£š¸¸£ˆÅ¸Ê, Dear Shareholders, th Ÿ¸ÿ ‚¸œ¸ˆ½Å ¤¸ÿˆÅ ˆÅú 14¨¸ú¿ ¨¸¸¢«¸ÄˆÅ ¬¸¸š¸¸£µ¸ ¤¸¾“ˆÅ Ÿ¸Ê ‚¸œ¸ ¬¸ž¸ú ˆÅ¸ í¸¢™ÄˆÅ ¬¨¸¸Š¸÷¸ I extend a very warm welcome to each one of you to the 14 Annual General Meeting of your Bank. During past couple of years banking ˆÅ£÷¸¸ í»¿— ¢œ¸Ž¥¸½ ™¸½ ¨¸«¸¸½ô ˆ½Å ™¸¾£¸›¸ ¤¸ÿ¢ˆ¿ÅŠ¸ „Ô¸¸½Š¸ ˆÅ¢“›¸¸ƒ¡¸¸Ê ¬¸½ Š¸º]¸£ £í¸ í¾ ‚¸¾£ industry is passing through turbulence, rise in NPAs and consequent ‡›¸œ¸ú‡ Ÿ¸Ê ¤¸[õ¸½î¸£ú ÷¸˜¸¸ ƒ¬¸ˆ½Å œÏ¢÷¸ˆ»Å¥¸ œÏž¸¸¨¸ ¬¸£ˆÅ¸£ú ®¸½°¸ ˆ½Å ¤¸íº÷¸ ¬¸½ ¤¸ÿˆÅ¸Ê ˆÅ¸½ adverse impact affecting many public sector banks. I have taken over œÏž¸¸¢¨¸÷¸ ˆÅ£ £í½ íÿ— Ÿ¸ÿ›¸½ 26 ¢¬¸÷¸¿¤¸£, 2016 ˆÅ¸½ ‚¸œ¸ˆ½Å ¤¸ÿˆÅ ˆ½Å œÏ¤¸¿š¸ ¢›¸™½©¸ˆÅ ‡¨¸¿ as Managing Director & CEO of your Bank on 26th September, 2016. I ¬¸úƒÄ‚¸½ ˆ½Å ³Åœ¸ Ÿ¸Ê ˆÅ¸¡¸ÄŠÏíµ¸ ¢ˆÅ¡¸¸ í¾— ‡½¬¸½ \¸º›¸¸¾÷¸úœ¸»µ¸Ä ¬¸Ÿ¸¡¸ Ÿ¸Ê ƒ¬¸ œÏ¢÷¸¦«“÷¸ ¤¸ÿˆÅ thank the Government of India for entrusting me with the responsibility ˆÅ¸ ›¸½÷¸¼÷¨¸ ˆÅ£›¸½ ˆÅú ¢]¸ŸŸ¸½™¸£ú Ÿ¸º^¸½ ¬¸¸ÿœ¸›¸½ ˆ½Å ¢¥¸‡ Ÿ¸ÿ ž¸¸£÷¸ ¬¸£ˆÅ¸£ ˆÅ¸ ‚¸ž¸¸£ú to lead this esteemed Bank, in such challenging times. I am committed í»¿— Ÿ¸ÿ ƒ¬¸ 82 ¨¸«¸Ä œ¸º£¸›¸½ Š¸¸¾£¨¸œ¸»µ¸Ä ¬¸¿¬˜¸¸›¸ ˆÅ¸ ›¸½÷¸¼÷¨¸ ˆÅ£›¸½ ‚¸¾£ ƒ¬¸½ ›¸ƒÄ …¿\¸¸ƒ¡¸¸Ê to lead this 82 year old institution and take it to greater heights and ÷¸ˆÅ œ¸íº¿\¸¸›¸½ ˆ½Å ¢¥¸‡ ÷¸˜¸¸ ¢í÷¸š¸¸£ˆÅ¸Ê ˆ½Å Ÿ¸»¥¡¸ ¬¸¿¨¸š¸Ä›¸ ˆ½Å ¢¥¸‡ œÏ¢÷¸¤¸Ö í»¿— increase the stakeholders’ value. ‚¤¸ ÷¸ˆÅ ¨¸¾¢æ¸ˆÅ ¤¸¸]¸¸£¸Ê Ÿ¸Ê ¬¸÷¸÷¸ Ÿ¸¿™ú ˆ½Å ¤¸¸¨¸]¸»™ ‹¸£½¥¸» ®¸½°¸ ‚œ¸›¸½ ¬¸º´[õ ¨¡¸¸œ¸ˆÅ Despite the continued sluggishness in the global markets till recently, ‚¸¢˜¸ÄˆÅ ¢¬¸Ö¸¿÷¸¸Ê œ¸£ ¥¸¸ž¸ ‚¢]¸Ä÷¸ ˆÅ£÷¸¸ £í¸ í¾— ¢¨¸Ÿ¸ºÍúˆÅ£µ¸ ˆ½Å ˆÅ¸£µ¸ ‚¬˜¸¸¡¸ú the domestic front continued to book gains on its robust macroeconomic Ÿ¸ºÍ¸ ™¤¸¸¨¸ ˆ½Å ¤¸¸¨¸]¸»™ Ÿ¸ºÍ¸¬ûÅú¢÷¸, ¢›¸¡¸¿¢°¸÷¸ £¸]¸ˆÅ¸½«¸ú¡¸ ‹¸¸’¸ ‚¸¾£ \¸¸¥¸» ‰¸¸÷¸¸ fundamentals. Reigned in inflation, controlled fiscal deficit and current ‹¸¸’¸ ˆ½Å ™¸¾£ Ÿ¸Ê ž¸¸£÷¸ú¡¸ ¨¸¼¢Ö ˆÅú ¤¸¸÷¸ š¡¸¸›¸ ™½›¸½ ¡¸¸½Š¡¸ £íú í¾— account deficit despite the temporary currency squeeze on account of demonetization, has made the Indian growth story more appealing. ¨¸«¸Ä 2017-18 í½÷¸º ]¸ú¨¸ú‡ ¨¸¼¢Ö ˆÅú 7.4% ˆÅú ž¸¢¨¸«¡¸¨¸¸µ¸ú ¡¸í ¬¸¿ˆ½Å÷¸ ™½÷¸ú í¾ The GVA growth forecast for 2017-18 has been put at 7.4%, indicating ¢ˆÅ ]¸ú‡¬¸’ú ˆ½Å ³Åœ¸ Ÿ¸Ê ¬¸¿£\¸›¸¸÷Ÿ¸ˆÅ ¬¸ºš¸¸£ ‚¸¾£ ˆ½Å›Íú¡¸ ¤¸]¸’ ˆ½Å ™¸¾£¸›¸ ‹¸¸½¢«¸÷¸ that the economy will gather faster pace with remonetisation, backed „œ¸¸¡¸¸Ê ׸£¸ ¬¸Ÿ¸¢˜¸Ä÷¸ œ¸º›¸Ÿ¸ºÄÍúˆÅ£µ¸ ˆ½Å ¬¸¸˜¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ÷¸½]¸ Š¸¢÷¸ œÏ¸œ÷¸ ˆÅ£½Š¸ú— by a slew of measures announced during Union Budget and rolling out Ÿ¸½ˆÅ ƒ›¸ ƒ¿¢”¡¸¸, ¬’¸’Ä ‚œ¸ ƒ¿¢”¡¸¸, „™¸£úˆ¼Å÷¸ ‡ûÅ”ú‚¸ƒÄ ›¸ú¢÷¸ ‚¸¾£ ƒ›üŸ-¤¸¾¢ˆ¿ÅŠ¸ of structural reforms as GST. Make in India, Start-up India, liberalised ž¸¸£÷¸ú¡¸ ‚˜¸Ä¨¡¸¨¸¬˜¸¸ ˆÅ¸½ ‚¸¾£ Š¸¢÷¸ ™½Š¸ú— ¤¸ÿˆÅ¸Ê ˆÅ¸½ ‚¸£ƒÄ‚¸ƒÄ’ú (REITs) ‚¸¾£ FDI policy and infra backing will give the Indian economy a further ‚¸ƒÄ‡›¸¨¸ú‚¸ƒÄ’ú (InvITs) Ÿ¸Ê ¢›¸¨¸½©¸ ˆÅú ‚›¸ºŸ¸¢÷¸ ™½›¸½ ˆÅ¸ ˆ½Å›Íú¡¸ ¤¸ÿˆÅ ˆÅ¸ ¢›¸µ¸Ä¡¸ boost. The decision of the Central bank to allow banks to invest in „÷¬¸¸í¨¸š¸ÄˆÅ £í¸ í¾ ‚¸¾£ ¡¸í ¢£¡¸¥¸ ƒ¬’½’/ ƒ›üŸ¬’ïÆ\¸£ ˆ¿Åœ¸¢›¸¡¸¸Ê í½÷¸º ÷¸£¥¸÷¸¸ ˆÅ¸ REITs and InVITs is encouraging and would offer a good source of ¤¸½í÷¸£ Ÿ¸¸š¡¸Ÿ¸ í¸½ ¬¸ˆ½ÅŠ¸¸— †µ¸ ˆÅú ¨¸¼¢Ö, ]¸¸½ ¢ˆÅ ¢œ¸Ž¥¸½ 61 ¨¸«¸¸½ô Ÿ¸Ê ›¡¸»›¸÷¸Ÿ¸ £íú, liquidity for the Real Estate/ Infrastructure Companies. The credit growth which was at its lowest in the past 61 years is expected to ‚¤¸ ¨¸¼¢Ö©¸ú¥¸ ‹¸£½¥¸» Ÿ¸¸¿Š¸ ˆ½Å ‚¸š¸¸£ œ¸£ ƒ¬¸Ÿ¸Ê ¬¸ºš¸¸£ ‚œ¸½¢®¸÷¸ í¾— improve based on increased domestic demand. 4 Jeeef<e&keÀ efjHeesì& 2016-17 31 Ÿ¸¸\¸Ä, 2017 ˆÅ¸½ ¬¸Ÿ¸¸œ÷¸ ¨¸«¸Ä í½÷¸º ‚¸œ¸ˆ½Å ¤¸ÿˆÅ ˆ½Å ˆÅ¸¡¸Ä-¢›¸«œ¸¸™›¸ ¬¸½ ¬¸¿¤¸¿¢š¸÷¸ Let me now place before you some of the key features about your st œÏŸ¸º‰¸ ¢¨¸©¸½«¸÷¸¸‚¸Ê ˆÅ¸½ Ÿ¸ÿ ‚¸œ¸ˆ½Å ¬¸¸Ÿ¸›¸½ œÏ¬÷¸º÷¸ ˆÅ£›¸¸ \¸¸í÷¸¸ í»¿— Bank’s performance for the year ended 31 March 2017. Performance of your Bank during 2016-17. ¨¸«¸Ä 2016-17 ˆ½Å ™¸¾£¸›¸ ‚¸œ¸ˆ½Å ¤¸ÿˆÅ ˆÅ¸ ˆÅ¸¡¸Ä-¢›¸«œ¸¸™›¸ Your Bank has a branch network of 1897 branches of which 55% ‚¸œ¸ˆ½Å ¤¸ÿˆÅ ˆÅ¸ 1897 ©¸¸‰¸¸‚¸Ê ˆÅ¸ ©¸¸‰¸¸ ›¸½’¨¸ˆÄÅ í¾, ¢]¸¬¸Ÿ¸Ê ¬¸½ 55 œÏ¢÷¸©¸÷¸ branches are in rural and semi urban area. Bank has presence in 30 ©¸¸‰¸¸‡¿ ŠÏ¸Ÿ¸úµ¸ ‚¸¾£ ‚š¸Ä ©¸í£ú ®¸½°¸ Ÿ¸Ê íÿ— ™½©¸ ˆ½Å 30 £¸]¡¸¸Ê ‚¸¾£ 4 ¬¸¿‹¸©¸¸¢¬¸÷¸ states and 4 union territories. Bank has also ATM network of 1878, for œÏ™½©¸¸Ê Ÿ¸Ê ¤¸ÿˆÅ ˆÅú „œ¸¦¬˜¸¢÷¸ í¾— ŠÏ¸íˆÅ¸Ê ˆÅ¸½ ¬¸½¨¸¸‡¿ œÏ™¸›¸ ˆÅ£›¸½ ˆ½Å ¢¥¸‡ ¤¸ÿˆÅ ˆÅ¸ providing services to customers. Bank has committed and dedicated 1878 ‡’ú‡Ÿ¸ ˆÅ¸ ›¸½’¨¸ˆÄÅ ž¸ú í¾— ¤¸ÿˆÅ ˆ½Å œ¸¸¬¸ œÏ¢÷¸¤¸Ö ‚¸¾£ ¬¸Ÿ¸¢œ¸Ä÷¸ ˆÅ¸¡¸Ä-¤¸¥¸ work force with an average age of about 42 years and 37% staff í¾, ¢]¸¬¸ˆÅú ‚¸¾¬¸÷¸ ‚¸¡¸º ¥¸Š¸ž¸Š¸ 42 ¨¸«¸Ä í¾ ÷¸˜¸¸ 37% ¬’¸ûÅ ˆÅú ‚¸¡¸º 35 ¨¸«¸Ä having age less than 35 years. ¬¸½ ˆÅŸ¸ í¾— The year 2016-17 has been a year of consolidation. In keeping with low ¨¸«¸Ä 2016-17 ´[õúˆÅ£µ¸ (ˆ¿Å¬¸¸½¢¥¸”½©¸›¸) ˆÅ¸ ¨¸«¸Ä £í¸ í¾— ›¡¸»›¸ †µ¸ „“¸¨¸ ˆÅ¸½ credit off take, Bank reduced its bulk deposit liabilities and certificate š¡¸¸›¸ Ÿ¸Ê £‰¸÷¸½ íº‡ ¤¸ÿˆÅ ›¸½ ‚œ¸›¸ú ˜¸¸½ˆÅ ]¸Ÿ¸¸£¸¢©¸ ™½¡¸÷¸¸‚¸Ê ÷¸˜¸¸ ]¸Ÿ¸¸ œÏŸ¸¸µ¸œ¸°¸ Ÿ¸Ê of deposits. As a result, the share of CASA deposits increased from ˆÅŸ¸ú ˆÅú í¾— ƒ¬¸ˆ½Å œ¸¢£µ¸¸Ÿ¸¬¨¸³Åœ¸ ˆÅ¸¬¸¸ ]¸Ÿ¸¸£¸¢©¸¡¸¸¿ 31.03.2016 ˆ½Å 36.67% 36.67% as on 31.03.2016 to 44.89% as on 31.03.2017.