ei. Corporate Office 46 Indian Bank Investor Services Cell FAX : 28134075 254-260, Avvai Shanmugam Salai PHONE : 28134076 Royapettah E-mail : [email protected] Chennai 600 014 Ref : ISC /(©7/ 2019-20 06.06.2019 The Vice President The Manager National Stock Exchange of India B S E Limited Limited Phiroze Jeejibhai Towers "Exchange Plaza", Bandra Kuria Dalai Street Complex, Bandra East Mumbai - 400 001. Mumbai - 400 051. Scrip Code : 532814 NSE Symbol: INDIANB Dear Sir, Sub : Annual Report of the Bank for the year 2018-19. In compliance to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith submitting the Annual Report of the Bank for the year 2018-19. We request you to take the same on record. Yours faithfully. (Bimal ti.bh) Company Secretary & Compliance Officer funs'kd eaMy BOARD OF DIRECTORS in~etk pqUMw: çcaèk funs'kd ,oa eq[; dk;Zikyd vfèkdkjh PADMAJA CHUNDURU MANAGING DIRECTOR & CEO ,e- ds- HkV~Vkpk;Z 'ks.kkW; fo'oukFk oh dk;Zikyd funs'kd dk;Zikyd funs'kd M K BHATTACHARYA SHENOY VISHWANATH V EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR vfer vxzoky ,l ds ikf.kxzgh fot; dqekj xks;y AMIT AGRAWAL S K PANIGRAHY VIJAY KUMAR GOEL Lkyhy dqekj >k fouksn dqekj ukxj Hkjr Ñ".k 'kadj SALIL KUMAR JHA VINOD KUMAR NAGAR BHARATH KRISHNA SANKAR eq[; lrdZrk vf/kdkjh / CHIEF VIGILANCE OFFICER lq/kkdj vkj v;~;j / Sudhakar R Iyer egkizca/kdx.k / GENERAL MANAGERS mn; HkkLdj jsìh ds ukxjktu ,e psfG;u ,l y{ehifr jsìh th Udaya Bhaskara Reddy K Nagarajan M Chezhian S Lakshmipathy Reddy G xksiky oh osadVsl is#eky ih vktkn flag xaM lk dkfrZds;u ,e Gopal V Venkatesa Perumal P Azad Singh Gandas Karthikeyan M Paknzk jsìh ds jkew , jfo ,l ckylqczef.k;u vkj Chandra Reddy K Ramu A Ravi S Balasubramanian R jsaxjktu ,l nsojkt Mh Ñ".ku ih , lanhi dqekj xqIrk Rengarajan S Devaraj D Krishnan P A Sandeep Kumar Gupta ijs'k panz nk'k ukjk;.ku oh ,l Paresh Chandra Dash Narayanan V S dkWiksZjsV dk;kZy;% 254 - 260 vOoS "k.eqxe lkyS Corporate Office : 254-260, Avvai Shanmugam Salai psUuS Chennai - 600 014 okf"kZd fjiksVZ Annual Report 2018-19 fu"iknu dh izeq[k ckrsa PERFORMANCE HIGHLIGHTS ¼AA djksM+ksa esa½ ( in crore) fooj.k Particulars 31-03-15 31-03-16 31-03-17 31-03-18 31-03-19 dqy O;kikj Total Business 298057 310918 314654 371020 429972 tek,a ¼Xykscy½ Deposits (Global) 169225 178286 182509 208294 242076 vfxze ¼Xykscy½ Advances (Global) 128832 132632 132145 162726 187896 fuos'k ¼ldy½ Investments (Gross) 46804 53418 67956 71232 66117 C;kt vk; Interest Income 15853 16244 16040 17113 19185 xSj C;kt vk; Non Interest Income 1363 1781 2211 2406 1883 dqy vk; Total Income 17216 18025 18251 19519 21068 C;kt O;; Interest Expenses 11391 11798 10894 10850 12167 ifjpkyuxr O;; Operating Expenses 2811 3195 3356 3668 4020 dqy O;; Total Expenditure 14202 14993 14250 14518 16187 ifjpkyuxr ykHk Operating Profit 3014 3032 4001 5001 4881 fuoy ykHk Net Profit 1005 711 1406 1259 322 tekvksa dh ykxr (%) Cost of Deposits (%) 7.10 6.76 6.03 5.40 5.28 vfxzeksa ij izfrQy (%) Yield on Advances (%) 10.19 9.63 9.17 8.50 8.45 fuoy C;kt ekftZu (%)Net Interest Margin (%) 2.50 2.33 2.59 2.90 2.96 vkSlr vkfLr;ksa ij izfrQy (%) Return on Average Assets (%) 0.54 0.36 0.67 0.53 0.12 bZfDoVh 'sk;j iwath Equity Share Capital 480 480 480 480 480 fjt+oZ ,oa vf/k'ks"k ¼iquewZY;u fjt+oZ dks NksM+dj½ Reserves & Surplus (excluding Revaluation Reserve) 12078 12998 13981 15347 15813 fuoy laifRr Net Worth 12558 13478 14461 15827 15785 ldy ,uih, (%) Gross NPA (%) 4.40 6.66 7.47 7.37 7.11 fuoy ,uih, (%) Net NPA (%) 2.50 4.20 4.39 3.81 3.75 iwath i;kZIrrk vuqikr Capital Adequacy Ratio -csly II - Basel II 13.24 13.67 -csly III - Basel III 12.86 13.20 13.64 12.55 13.21 izfr 'sk;j vtZu (AA ) Earnings Per Share ( ) 21.62 14.81 29.27 26.21 6.70 izfr 'ks;j cgh ewY; (AA ) Book Value per Share ( ) 261.46 280.63 301.10 329.53 328.64 izfr bZfDoVh 'ks;j ykHkka'k (AA ) Dividend per Equity Share ( ) 4.20 1.50 6.00 - - 'kk[kkvksa dh la[;k ¼uacj½ No. of branches (Nos.) 2412 2565 2682 2823 2875 deZpkfj;ksa dh la[;k ¼uacj½ No. of employees (Nos.) 20294 20140 20924 19843 19604 izfr deZpkjh dkjksckj ¼AA yk[kksa esa½ Business per employee ( in lacs) 1443 1531 1488 1856 2174 ys[kk ijh{kd AUDITORS xka/kh feukspk ,.M daiuh ikEl ,.M ,lksfl;sV~l GANDHI MINOCHA & CO PAMS & ASSOCIATES ih ,l lqczef.k; v¸;j ,.M daiuh ,e Fkkel ,.M daiuh ds lh esgrk ,.M daiuh P S SUBRAMANIA IYER & CO M THOMAS & CO K C MEHTA AND CO dkWiksZjsV dk;kZy; : 254-260, vOoS "k.eqxe lkyS Corporate Office : 254-260, Avvai Shanumugam Salai psUuS Chennai - 600 014 Okkf"kZd fjiksVZ Annual Report 2018-19 fo"k;oLrq CONTENTS i`"B la. Page No. çfu ,oa eqdkv dk lans'k 1 MD & CEO’s Message 5 funs'kdksa dh fjiksVZ 10 Directors’ Report 11 izcU/ku fopkj foe'kZ ,oa fo'ys"k.k 16 Management Discussion and Analysis 17 dkWiksZjsV vfHk'kklu ij fjiksVZ 110 Report on Corporate Governance 111 dkWiksZjsV vfHk'kklu ij ys[kkijh{kdksa dh fjiksVZ 156 Auditors’ Certificate on Corporate Governance 157 foRrh; fooj.k & bafM;u cSad Financial Statements – Indian Bank llrqyu i=] ykHk ,oa gkfu ys[kk vkSj vuqlwfp;k¡ 160 Balance Sheet, Profit and Loss Account and Schedules 160 lleq[; ys[kkdj.k uhfr;ka 172 Significant Accounting Policies 173 llys[kksa ij fVIif.k;ka 182 Notes on Accounts 183 llys[kk ijh{kdksa dh fjiksVZ 242 Auditors’ Report 243 lesfdr foRrh; fooj.k Consolidated Financial Statements llrqyu i=] ykHk ,oa gkfu ys[kk vkSj vuqlwfp;k¡ 248 Balance Sheet, Profit and Loss Account and Schedules 248 lleq[; ys[kkdj.k uhfr;ka 256 Significant Accounting Policies 257 llys[kksa ij fVIif.k;ka 270 Notes on Accounts 271 llys[kk ijh{kdksa dh fjiksVZ 298 Auditors’ Report 299 vfrfjDr izdVhdj.k 302 Additional Disclosures 303 bafM;u cSad Indian Bank fuos’kd lsok,a d{k Investor Services Cell la[;k. 254-260, vOoS "k.eqxe lkyS No.254-260, Avvai Shanmugam Salai jk;isV~Vk Royapettah psUuS – 600 014 Chennai - 600 014 nwjHkk"k la 044 28134076; Fax No.044 28134075 Tel No. 044 28134076; Fax No. 044 28134075 bZ&esy : [email protected] E – Mail : [email protected] 'ks;j varj.k ,tsaV Share Transfer Agent dsfe;ks dkWiksZjsV lfoZlst+ fyfeVsM Cameo Corporate Services Limited ;wfuV%: bafM;u cSad Unit : Indian Bank lqczef.k;u fcfYMax] 1, Dyc gkml jksM Subramanian Building, 1, Club House Road psUuS – 600 002 Chennai - 600 002 nwjHkk"k la- 044 28460718;QSDl la . 044 28460129 Tel No. 044 28460718; Fax No. 044 28460129 bZ&esy : [email protected] E – Mail : [email protected] çcaèk funs'kd ,oa eq[; dk;Zikyd vfèkdkjh dk lans'k lqJh in~etk pqUMw# çcaèk funs'kd ,oa eq[; dk;Zikyd vfèkdkjh fç; 'ks;jèkkjdks] eq>s O;fäxr rkSj ij rFkk funs'kd e.My ,oa cSad ds deZpkfj;ksa dh vksj ls jktuSfrd ruko] dPps rsy dh c<+rh dhersa rFkk oSfÜod vFkZO;oLFkk dh xfr foÙkh; o"kZ 2018&19 ds fy, vkids cSad dk fu"iknu vkids le{k j[krs gq, dk èkhek gksuk cká fpark dk fo"k; gSA ?kjsyw vkèkkj ij lkekU; ls de ekulwu vikj g"kZ gks jgk gSA çkIr miyfCèk;ksa ,oa cSad }kjk dh xbZ igyksa ds fooj.k dk vuqeku] ean ?kjsyw miHkksx ,oa fuos'k] èkhek jkstxkj l`tu rFkk ?kjsyw lfgr 31 ekpZ 2019 dks lekIr foÙkh; o"kZ dh okf"kZd fjiksVZ çLrqr gSA ,u,Qchlh oxZ ds fy, pyfufèk j[kus dk ncko vkfFkZd xfrfofèk;ksa dh lEiw.kZ fodklnj dks çHkkfor djrk gSA blls igys fd ge foÙkh; fooj.k çLrqr djsa] —i;k eq>s lfef"V vkfFkZd ifj–'; dk la{ksi fooj.k çLrqr djus dk volj nsaA mijksä pqukSfr;ka rFkk tksf[ke ftudk ns'k lkeuk dj jgk gS] dks ns[krs gq, vkfFkZd xfrfofèk;ksa esa ,d vkdfLed ,oa egRoiw.kZ mNky vk;k gS ftlls Rofjr vkfFkZd voyksdu–: oSfÜod vFkZO;oLFkk fuos'k feyuk dfBu gksxkA oSfÜod ifj–'; esa voljksa dh laHkkouk,a tksfd ns'kfgr esa gksaxh dqN le; ckn vey esa vkus dh vk'kk gSA vkxs tkdj dqN çeq[k vFkZO;oLFkkvksa dks çHkkfor djusokys dkjd n'kkZrs gSa fd 2018 dh f}rh; le; ckn fodklnj èkhjs&èkhjs lkekU; gks tk,xh tksfd Hkfo"; esa lqèkkjkRed Nekgh esa oSfÜod vkfFkZd xfrfofèk;ka èkheh gks xbZ gSaA fu"iknu dk çpyu fuèkkZfjr djsxhA 2018 dh vafre frekgh esa la;qä jkT; dk lhfer fu"iknu tksfd 2019 dh çFke cSafdax {ks= frekgh esa Hkh tkjh jgk ;g dkj[kkuksa dh xfrfofèk;ksa esa deh ds dkj.k FkkA Nk;k cSafdax ij fofu;ked vadq'k yxkus rFkk la;qä jkT; ds lkFk O;kikfjd ruko cSafdax {ks= vfèkdka'kr% o"kZHkj pyfufèk esa deh ds nkSj ls xqtjk gSA tcfd ekpZ c<+us ds dkj.k phu dh fodklnj esa Hkh deh vkbZ gSA xzkgd ,oa dkjksckj ds 2018 ds var esa dh rqyuk esa 1 ekpZ 2019 rd tekvksa esa dh o`f) gqbZ Hkjksls ds de gksus ls rFkk teZuh esa u, mRltZu ekudksa ds ykxw gksus ls dkjksa ds 6% 9.2% gSA dfFkr vofèk ds nkSjku dh rqyuk esa _.k o`f) jghA mRiknu esa vkbZ deh( bVyh esa jk"Vªh; Ø;&foØ; njksa dk varj c<+us ds dkj.k 10.6% 14.6% fuos'kdksa esa deh( cká ekax] fo'ks"kdj mHkjrs ,f'k;k] esa deh ds dkj.k ;wjks {ks= Hkkjrh; fjtoZ cSad us 25 chih,l izfr ds nks pj.kksa esa jsiks nj dks 6 çfr'kr ls dh vFkZO;oLFkk vuqeku ls vfèkd ckj çHkkfor gqbZA 6-5 çfr'kr rd c<+k;k vkSj fQj Qjojh 2019 dh ekSfæd uhfr esa nj dks ?kVkdj Hkkjrh; vFkZO;oLFkk 6-25 çfr'kr vkSj vçSy 2019 dh uhfr esa 6-00 çfr'kr dj fn;kA foÜo cSad }kjk 2017 ds fy, O;kikj djus esa vklkuh okys ns'kksa esa ns'k dh jsad 23 cSad dk fu"iknu & ekpZ 2019 dks lekIr o"kZ LFkkuksa ds lqèkkj ds lkFk 190 ns'kksa ds eè; 77osa LFkku ij vk¡dh xbZ gSA bl i`"BHkwfe ds lkFk] eSa çeq[k ekudksa ij cSad ds fu"iknu dk LuSi'k‚V pquko ifj.kkeksa dh ?kks"k.kk ds lkFk gh] vkxkeh ljdkj dh vfuf'prrkvksa ij çLrqr djuk pkgw¡xh % fojke yx x;k gSA orZeku ljdkj dks vkxkeh 5 o"kksZa dh f}rh; ikjh ds fy, Hkkjh cgqer çkIr gqvk gS] ftlus uhfr;ksa ,oa lqèkkj dks lqfuf'pr dj fn;k gS] dkjksckj % fuos'k ds fu.kZ; vkSj varokZg dk ekxZ ç'kLr gqvk gSA ;g cnyko ?kjsyw vFkZO;oLFkk ds fy, vPNk 'kdqu gS D;ksafd blls blds