96th Annual Report 2017 - 2018 BOARD OF DIRECTORS (AS ON 25.06.2018) CVdÏSoLs ÏÝ 1. Thiru K.V. Rama Moorthy Managing Director & CEO §Ú. K.V. WôUêoj§ ¨oYôL CVdÏSo Utßm RûXûU ¨oYôL A§Lô¬ 2. Thiru S.Annamalai §Ú. S. AiQôUûX 3. Thiru S.R.Ashok §Ú. S.R. AúNôd 4. Thiru P.C.G. Asok Kumar §Ú. P.C.G. AúNôdÏUôo 5. Tmt S. Ezhil Jothi §ÚU§. S. G¯p ú_ô§ 6. Thiru B.S. Keshava Murthy §Ú. B.S. úLNYêoj§ 7. Thiru K. Nagarajan §Ú. K. SôLWô_u 8. Thiru D.N. Nirranjan Kani §Ú. D.N. ¨WgNu L² 9. Thiru A. Shidambaranathan §Ú. A. £RmTWSôRu 10. Thiru B. Vijayadurai §Ú. B. ®_VÕûW 11. Thiru Anup Kumar Additional Director, RBI Nominee §Ú. AàlÏUôo áÓRp CVdÏSo, ¬Noq Ye¡ ¨VU]RôWo 12. Thiru K.V. Rajan Additional Director, RBI Nominee §Ú. K.V. Wô_u áÓRp CVdÏSo, ¬Noq Ye¡ ¨VU]RôWo Auditors M/s. Maharaj NR Suresh And Co, Chennai §ÚYô[oLs. UaôWôw Gu.Bo. ÑúWx Aih úLô, ùNuû] Registered Office : 57,V.E. ROAD, THOOTHUKUDI - 628 002 T§Ü AÛYXLm : 57 ®.C. úWôÓ, çjÕdÏ¥ - 628 002 1 96th Annual Report 2017 - 2018 Board's Report for the year 2017-18 CVLÏSoL°u A±dûL 2017-18 Your Board of Directors has great pleasure in EeLs Ye¡«u CVdÏSo ÏÝ, ùRôiæt± B\ôYÕ, YÚPôk§W A±dûLÙPu, presenting the Ninety Sixth Annual Report with the R¦dûL ùNnVlThP 31-03-2018 Auß Audited Balance Sheet as on March 31, 2018, the Profit Ø¥YûPkR YÚPj§tLô] CÚl× ¨ûX LQdÏ and Loss Account and the Cash Flow Statement for the CXôT SxP LQdÏ Utßm TQl×ZdL A±dûL year ended March 31, 2018 B¡VYtû\ EeLs Øu NUol©lT§p ùTÚU¡rf£ AûP¡\Õ. 1. Business Performance 1. Ye¡«u Y¦L ùNVp§\u : The Bank had a successful year in its 96th year of operations and recorded satisfactory performance. SUÕ Ye¡«u 96-YÕ YÚPUô] CqYôiÓ Aû]jÕ Õû\L°Ûm º¬V During the year under review, the total business ùNVp§\àPu ùNVpThPRôp SUÕ Ye¡dÏ JÚ increased from ₹ 54,162.47 crore to ₹ 56,197.05 crore ùYt±LWUô] BiPôL AûUkÕs[Õ. CqYôiÓ registering a growth of 3.76%. The gross NPAs and net Ye¡«u ùUôjR Y¦Lm ` 54,162.47 NPAs both in absolute terms and as a percentage of úLô¥«­ÚkÕ ` 56,197.05 úLô¥VôL EVokÕ 3.76% NR®¡Rm Y[of£ LiÓs[Õ. Ye¡«u total advances marginally increased over the previous ùUôjR LP²p ùUôjR Utßm ¨LW YWôdLPuLs year. Utßm ARu NR®¡Rm LPkR YÚPjûR ®P Ntú\ EVokÕs[Õ. Performance Highlights: ùNVpTôh¥u £\l× AmNeLs : Operating profit increased from ₹ 875.63 crore to ₹ * ùNVpTôhÓ CXôTm ` 875.63 úLô¥«­ÚkÕ 1005.99 crore. ` 1005.99 úLô¥VôL EVokÕs[Õ. Net profit decreased from ₹ 316.66 crore to ₹ * ¨LW CXôTm ` 316.66 úLô¥«­ÚkÕ 221.92 crore (-29.92%). ` 221.92 úLô¥VôL Ïû\kÕs[Õ (-29.92%) Deposits of the Bank increased from ₹ 32,190.15 *Ye¡«u ûYlר§ ` 32,190.15 úLô¥«­ÚkÕ ` 32428.33 úLô¥VôL crore to ₹ 32,428.33 crore (+0.74%) during the EVokÕs[Õ. (+0.74%) year. * Ye¡ YZe¡V ¨LW LPuLs ` 21,972.32 Net Advances increased from ₹ 21,972.32 crore to úLô¥«­ÚkÕ ` 23,768.72 úLô¥VôL ₹ 23,768.72 crore (+8.18%) during the year. EVokÕs[Õ.(+8.18%) Gross NPAs increased from 2.91% to 3.60%. * ùUôjR YWôdLPu 2.91% NRÅRj§­ÚkÕ Net NPAs increased from 1.74% to 2.16%. 3.60% NRÅRUôL EVokÕs[Õ. Provision Coverage Ratio (PCR) improved from * ¨LW YWôdLPu 1.74% NRÅRj§­ÚkÕ 2.16% NRÅRUôL EVokÕs[Õ 66.51% to 72.71% *TôÕLôl× JÕd¸Ó ®¡Rm 66.51% The total income decreased by ₹ 54.86 crore NRÅRjR§­ÚkÕ 72.71% NRÅRUôL during the year from ₹3,811.47 crore in the previous EVokÕs[Õ. year to ₹3,756.61 crore during the year under review (- Ye¡«u ùUôjR YÚUô]m ` 54.86 úLô¥ Ïû\kÕ 1.44%). LPkR YÚP YÚUô]Uô] ` 3,811.47 úLô¥«­ÚkÕ `3756.61 úLô¥VôL Ïû\kÕ Es[Õ (-1.44%). Yh¥ Interest income decreased from ₹3,380.96 crore to YÚYôn ` 3380.96 úLô¥«­ÚkÕ ` 3250.49 ₹3,250.49 crore. Other income increased by ₹75.61 úLô¥VôL Ïû\kÕs[Õ. CRW YÚUô]m SPl× Bi¥p 75.61 úLô¥ EVokÕ `506.12 úLô¥VôL crore to ₹506.12 crore during the current year. The EVokÕ Es[Õ. Ye¡«u ùUôjR ùNXÜLs LPkR decrease in total expenditure was at ₹185.10 crore. The YÚP ùNXYô] ` 2935.72 úLô¥«­ÚkÕ total expenditure decreased from ₹2,935.72 crore CqYÚPm ` 2750.62 úLô¥VôL Ïû\kÕs[Õ. during the previous year to ₹2,750.62 crore during the JqùYôÚ Te¡tÏm Dh¥V CXôTm `22.22­ÚkÕ current year. Earnings per share decreased from `15.57 BL Ïû\kÕs[Õ. BûLVôp TeÏL°u ×jRL U§l× 226.23 ­ÚkÕ ` 238.91 BL ₹22.22 to ₹15.57, whereas the book value of the EVokÕs[Õ. 2 96th Annual Report 2017 - 2018 2. Profit and appropriation 2. CXôTØm JÕd¸ÓLÞm : The net profit stood at ₹221.92 crore after making all CqYôiÓ TôWR ¬Noq Ye¡«u necessary provisions under various categories as per YûWVû\dÏ CQeL úRûYVô] JÕd¸ÓLû[ TpúYß ©¬ÜL°u ¸r ùNnR ©u× EeLs Ye¡ the prudential norms prescribed by Reserve Bank of `221.92 úLô¥ ¨LW XôTm Dh¥Ùs[Õ. SPl× ¨§ India. During the current financial year 2017-18 2nd BiÓ 2017-18p LPkR 2016-17Lô] CWiPôYÕ interim dividend to the tune of `17.10 crore for the CûPdLôX Te¸Ó ` 17.10 úLô¥Ùm Utßm CXôT financial year 2016-17 and dividend distribution tax Te¸Ó ®¨úVôL Y¬ `3.48 úLô¥Ùm 2016-17 Bm `3.48 crore were paid out of the profit and loss account BiÓ CXôT Utßm ShP LQd¡u CÚlTô] 23.82 úLô¥«­ÚkÕ ùLôÓdLlThPÕ. balance figure of ` 23.82 crore brought forward from the ` ¡ûPdLdá¥V CÚl× `225.16 úLô¥ Es[Õ. CÕ year 2016-17. There was an available balance of ¸úZ ùLôÓdLlThÓs[T¥ T¡WlThÓs[Õ.. ₹225.16 crore, which has been appropriated as under: Transferred to: ` in crore JÕd¸ÓLs : ` úLô¥«p Profit and Loss account opening balance 23.82 CXôT Utßm ShPd LQdÏ ùRôPdL CÚl× 23.82 Less: 2nd Interim Dividend for 2016-17 paid (`1.20 per share) 17.10 (-) 2YÕ CûPdLôX DÜjùRôûL 2016-17Bm Less: Tax on Interim Dividend @ 20.357647% 3.48 BiÓdLôL ùNÛjRlThPÕ. (`1.20 JÚ Te¡tÏ) 17.10 Available balance in Profit and Loss account 3.24 (-) CûPdLôX DÜjùRôûL«u ÁRô] Y¬ 20.357647% 3.48 Net profit 221.92 CXôT Utßm ShP LQd¡p CÚdLdá¥V CÚl× 3.24 Available for appropriation 225.16 ¨LW XôTm 221.92 Statutory Reserve 67.00 JÕd¸ÓLÞdLô] CÚl× 225.16 Special Reserve U/s 36(1)(viii) of IT Act, 1961 29.00 NhPléoY JÕd¸Ó 67.00 Investment Reserve 0.04 £\l× JÕd¸Ó YÚUô] Y¬fNhPm 1961, ©¬Ü36(1), (viii)u ¸r 29.00 Capital Reserve 6.50 ØRÄÓ JÕd¸Ó 0.04 Interim Dividend paid (` 1.20 per share) 17.10 êXR] JÕd¸Ó 6.50 Tax on Interim Dividend @ 20.357647% 3.48 CûPdLôX CXôT Te¸Ó ùLôÓjRÕ (ì.2 JÚ TeÏdÏ) 17.10 Transfer to General Reserve 66.00 CûPdLôX CXôT Te¸Ó Y¬ 20.357647% 3.48 Balance carried over to next year 36.04 ùTôÕ JÕd¸h¥tÏ Uôt\lThPÕ. 66.00 Total 225.16 AÓjR Bi¥tÏ ùLôiÓ ùNpXlTÓm Á§j ùRôûL 36.04 ùUôjRm 225.16 3. Dividend 3. CXôTl Te¸Ó : EeLs CVdÏSoLs EeLs Ye¡ Dh¥Ùs[ Considering the profit earned and the overall growth in CXôTm Utßm JhÓ ùUôjR Y[of£«û]d LÚj§p the business of your Bank during the year, your Board of ùLôiÓ 2018 ©lWY¬ 7 Auß 12% NRÅRØm, 2018 _øu 25 Auß 20% NRÅRØm CûPdLôX CXôTl Directors was pleased to declare interim dividend of Te¸PôL A±®lT§p U¡rf£VûP¡\ôoLs. 2017- 12% and 20%, on February 7, 2018 and June 25, 2018 18Bm Bi¥tLô] ùUôjR CXôTl Te¸Ó 32% respectively. The total dividend for the year 2017-18 NRÅRm ARôYÕ ` 3.20 JÚ Te¡tÏ CXôTl comes to 32%, i.e. ₹ 3.20 per equity share of ₹ 10 Te¸PôL YZeLlThÓs[Õ. CRuêXm BÏm each) involving an outgo of ₹54.94 crore (including ùNXYô]Õ `54.94 (CXôTl Te¸Ó Y¬ EhTP) úLô¥VôÏm. dividend distribution tax) towards dividend to the shareholders. 3 96th Annual Report 2017 - 2018 4. Capital and reserves 4. êXR]m Utßm JÕd¸ÓLs : The Bank's issued and paid up capital was 2018 Bm BiÓ Uôof 31Bm úR§Vuß `142.51crore as on March 31, 2018. Ye¡«p YZeLlThP Utßm ùNÛjRlThP êXR]m `142.51 úLô¥ ìTôVôL CÚkRÕ. During the Financial Year 2017-18, there was no 2017-18 Bm Bi¥p Ye¡«u êXR] change in the capital structure of the bank. The capital AûUl©p GkRùYôÚ Uôt\Øm CpûX. SPl× plus reserves of the Bank has moved up from `3224.04 ¨§Vôi¥p CXôTl Te¸Ó YZe¡V ©\Ï CXôT crore to ` 3404.79 crore on account of balance ShPd LQd¡p CÚkÕ CXôTj§û] Uôt\m transferred of profits from P/L Account after distribution ùNnR§p Ye¡«u êXR]m Utßm CÚl×Ls of dividend during the current financial year. `3224.04 úLô¥«p CÚkÕ `3404.79 úLô¥VôL EVokÕs[Õ. Sec 36(1)(viii) of the Income Tax Act, 1961 provides YÚUô] Y¬f NhPm 1961 ©¬Ü 36(1) (viii)u for deduction in respect of any Special Reserve created T¥ ùRô¯p, ®YNôV A©®Új§, A¥lTûP and maintained to the extent of 20% of the profit derived LhPûUl× YN§ Utßm ÅÓ LhPûUl×LÞdÏ from the business of providing long term finance for ùLôÓjR ¿iP LôXd LPu ÁRô] CXôTj§p 20 industrial or agricultural development or development of NRÅRm £\l× JÕd¸PôL ùNnVlThÓs[Õ.