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The Board of Directors have pleasure in presenting the Bank's Annual
Report along with the audited statement of accounts and the cash flow statement for the
year ended 31st March 2023.
PERFORMANCE:
Domestic Business:
? Overall Domestic Business of the Bank increased by 5.70% and reached
at Rs. 998,700 crore as on 31.03.2023 from Rs. 944,824 crore as on 31.03.2022.
? CASA deposits increased by 2.72% on YOY and stood at Rs. 252,149
crore. Share of low cost deposits (CASA), in domestic deposits stood at 44.73% as on
31.03.2023.
? TOTAL deposits increased by 2.95% and reached at Rs. 567.063 crore as
on 31.03.2023 from Rs. 550,833 crore as on 31.03.2022.
? Gross Domestic Advances registered growth of 9.56% YoY, reached at
Rs. 431,637 crore as on 31.03.2023 from Rs. 393,991 crore as on 31.03.2022.
? Share of RAM Advances to TOTAL advances is 55.11% (i.e. Rs. 237,884
crore) as on 31.03.2023 as compared to 53.77% (i.e. Rs. 211,843 crore) as on 31.03.2022.
? Priority Sector lending constituted 43.28% of Adjusted Net Bank
Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 19.00%.
? Retail Credit grew by 17.4% from Rs 80,675 crore as on 31.03.2022 to
Rs 94,716 crore as on 31.03.2023. The share of Retail Credit to TOTAL Domestic Credit was
21.94% as on 31.03.2023.
? MSME Credit grew by 9.31% from Rs 64,750 crore as on 31.03.2022 to Rs
70,777 crore as on 31.03.2023. The share of MSME Credit to TOTAL Domestic Credit was
16.40% as on 31.03.2023.
Overseas Business:
? Overseas business has increased by 33.30 % and reached at Rs. 186,738
crore as on 31.03.2023 as compared to Rs. 140,086 crore as on 31.03.2022.
? TOTAL Foreign Deposit registered a growth of 33.04 %, reached at Rs.
1,02,523 crore as on 31.03.2023 from Rs. 77.063 crore as on 31.03.2022.
? The Overseas CD Ratio stood at 82.14% as on 31.03.2023.
Global Business:
? Gross Business of the Bank registered a growth of 9.27 %, reached at
Rs. 11,85,438 crore as on 31.03.2023 from Rs. 10,84,910 crore as on 31.03.2022.
? TOTAL deposits increased by 6.64% and reached to Rs.669,586 crore as
on 31.03.2023 from Rs. 627,896 crore as on 31.03.2022.
?Gross Advances increased by 12.87% and reached at Rs. 515,852 crore as
on 31.03.2023.
? The Global CD Ratio stood at 77.04% as on 31.03.2023.
Financial Parameters:
? Operating Profit increased by 34.09% and reached at Rs. 13,393 crore
as on 31.03.2023 against Rs.9,988 crore as on 31.03.2022.
?Non-Interest Income decreased to Rs.7,100 cr in FY'23 from Rs. 7,879
crore as on 31.03.2022.
? The Bank registered Net profit of Rs.4,023 cr. In FY'23 as against
Net Profit of Rs. 3,405 crore for FY 22.
? Capital Adequacy Ratio stood at 16.28% as on 31.03.2023 as against
16.51% as on 31.03.2022.
?Net Worth increased by 11.35% to Rs. 41,127 crore from Rs. 36,933
crore as on 31.03.2022.
? Book value per share is Rs. 100.20.
?Gross NPA amount reduced by 17.36% (i.e. Rs. 7,920 crore) reached at
Rs 37,686 crore as on 31.03.2023 from 45,605 crore as on 31.03.2022.
? Gross NPA percentage reduced to 7.31% as on 31.03.2023 from 9.98% as
on 31.03.2022.
?Net NPA amount reduced by 18.25% (i.e. Rs. 1,798 crore) reached at Rs.
8,054 crore as on 31.03.2023 from Rs. 9,852 crore as on 31.03.2022.
?Net NPA percentage reduced to 1.66% as on 31.03.2023 from 2.34% as on
31.03.2022.
The Financial performance of the Bank for the year 2022-23 is
summarized below:
(Amount in crore)
| Particulars |
2021-22 |
2022-23 |
Growth (%) |
| Net Interest Income |
14062 |
20,275 |
44.18 |
| Non-Interest Income |
7879 |
7100 |
-9.89 |
| Operating Expenses |
11952 |
13982 |
16.98 |
| Operating Profit |
9988 |
13393 |
34.08 |
| Provisions / Contingencies |
6584 |
9370 |
42.32 |
| Net Profit/ Loss |
3405 |
4023 |
18.16 |
| Earnings per share (Rs.) |
8.84 |
9.80 |
|
| Book Value per share (Rs.) |
89.99 |
100.20 |
|
| Return on Equity (%) |
10.55 |
10.31 |
|
| Return on Average Assets (%) |
0.43 |
0.49 |
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Key Financial Ratios are presented below:
(Percentage) (%)
| Particulars |
2021-22 |
2022-23 |
| Yield on Advances |
6.76 |
7.37 |
| Yield on Investments |
6.32 |
6.51 |
| Yield on Funds |
5.21 |
6.15 |
| Cost of Deposits |
3.69 |
3.67 |
| Cost of Funds |
3.29 |
3.53 |
| Net Interest Margin |
2.36 |
3.01 |
| Non Interest Income to Operating Expenses |
65.92 |
50.78 |
| Other Income to Average Working Fund |
1.0 |
0.86 |
| Operating Expenses to Average Working Fund |
1.64 |
1.80 |
| Staff Expenses to Average Working Fund |
0.97 |
1.08 |
| Other Operating Expenses to Average Working
Fund |
0.67 |
0.72 |
| Asset Utilisation Ratio |
1.37 |
1.73 |
| Non Interest Income to TOTAL Income |
17.14 |
12.97 |
| Non Interest Income to Net Income |
35.91 |
25.94 |
| Cost to Income Ratio |
54.48 |
51.08 |
CAPITAL:
During the financial year 2022-23, Bank has raised Rs.1,500 Crore by
issue of Basel III compliant Additional Tier I bonds on 02.12.2022.
CAPITAL ADEQUACY:
? As per Basel III framework, the Bank's Capital Adequacy Ratio was
16.28% which is higher than the regulatory requirement of 11.5 %.
? Details of Capital Adequacy (BASEL III) are :
(Rs. in crore)
| Particulars |
BASEL-III |
|
31.03.2022 |
31.03.2023 |
| CET1 CRAR |
42,695 |
13.49% |
48,232 |
13.60% |
| AT1 CRAR |
1,352 |
0.44% |
2852 |
0.80% |
| Tier I Capital |
44,047 |
13.92% |
51,084 |
14.41% |
| Tier II Capital |
8,206 |
2.59% |
6,643 |
1.87% |
| TOTAL Capital |
52,253 |
16.51% |
57,727 |
16.28% |
| Risk Weighted Assets |
3,16,395 |
|
3,54,534 |
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BUSINESS INITIATIVES:
? "Star Suvidha Express Personal Loan scheme (SSEPL)" launched
exclusively for salaried class and pensioners drawing pension through our Bank.
? Bank has launched "Supply Chain Finance solution customer
portal" to increase business through Channel Financing.
?The Co-Lending solutions is under customization with Cred Avenue whereas
Knight Fintech is under integration & customization for Pool & Co-Lending
solutions.
? Integration of TReDS platform has been implemented with our
Supply Chain finance.
? Forex business transactions are centralised at GIFT City,
Gandhinagar for faster processing and better compliance.
? Bank is under process of on boarding "GST Sahay App for
invoice financing" and "GEM Sahay App Order Based financing".
?Bank has launched "Star CPSU Scheme" for catering to
the requirements of CPSUs & Central Government
? Bank has completed "Technical Integration for leads
generation" sourced by - housing.com, cardekho.com, 4B Network and CIBIL
triggers.
?Bank has formulated a Comprehensive Policy on "Syndicated
Loans, External Commercial Borrowings and Foreign Currency Loans" with an
objective to regulate and achieve uniformity in syndication lending at all foreign
centres.
? Bank has taken various staff welfare initiatives to improve cordial
working atmosphere under ESG (Environmental Social Governance) progarmme launched
by Human Resources.
? Bank has started Digital processing of PMMY MUDRA Loans product
in MSME segment; Personal, Vehicle and Pensioner loan in Retail Segment; Gold
Loan and KCC in Agriculture segment through e-platform.
? Special schemes to lend for augmentation of Ethanol Production
Capacity launched under Corporate Credit.
? Schemes like Star Kisan Ghar, Star Bio Energy Scheme, Star Kisan
Sahayata Loan has been launched in Agriculture segment.
? Bank has launched BOI BIZ Pay app.
? "MissCallPay" is digital payment offline solution
that provides all the functionality of UPI based mobile payments over a feature phone
using Missed Call. It does not have any dependency on internet connection. Hence it is
suitable for rural and urban under-served population of India.
? Digi Locker has been launched. It is an online service
provided by Ministry of Electronics and IT (MeitY), Government of India, under its Digital
India initiative.
? Cheque Deposit Kiosks has been deployed for providing facility
to the customers to deposit cheques in the selfoperated Kiosks without intervention of
bank staff.
? ICCW (Interoperable Cardless Cash Withdrawal), To Facilitate
bank's customers who are live on UPI, to withdraw cash from any participating banks' ATMs
without using their card.
? Regional Language implementation at ATM.
? Bank has inaugurated two DBUs in East Singhbhum and Khurda to
deliver the Digital Banking products & services.
? E-PLATFORM solution is being implemented for Straight Through
Origination and process up all Banking products.
? Bank has enabled branches for opening of RBI Floating Rate Saving
Bond, 2020 (Taxable).
? Bank has successfully completed phased implementation of
Electronic Cash Ledger (ECL) in Customs.
? Robust Recovery mechanism through initiatives like "Intensive
Recovery Day", "Branch Adalat" monthly mega E-auction and involving
in-house staff such as "Sanjeevani", "Saksham-2" put in place.
? Non-discriminatory and Non-discretionary OTS Schemes, namely "Star
Sanjeevani" and "BOI OTS 2021" were made more customer friendly
with greater reach for quick resolution of NPAs.
? Document Management System (DMS) has been implemented for
digital retrieval of documents and also digitally storing, tracking, managing and
accessing data in a more flexible and hassle freeway.
? Security Solutions- Bank has procured and implemented security
solutions for strengthening ecosystem of the bank as per guidelines on "Cyber
Security Framework in Banks".
? "Tech-driven Credit Monitoring System" for tracking
of "Early Warning Signals" effectively used for SMA and SASCL management.
? "Enterprise wide Fraud Risk Management" framework
for real-time fraud monitoring is being effectively used for fraud monitoring and
management
? Star Hunt scheme- Interested Officers have an opportunity to
work in their chosen vertical and their selection is based on written examination and
interview. After selection, such officers are trained in the vertical they are selected
for and are posted in identified fields.
? Additional National Banking Group and Zonal Offices created to
give good service to customers and more business Growth.
AWARDS:
? Bank of India has been adjudged as the "Second Best in
Category-I Public Sector Banks for Excellence in Financial Reporting" by ICAI for
the year ended 31.03.2022
? Bank of India has been awarded with "Best Innovative Bank-
Winner " and "Best Bank For Promoting Social Scheme- -Runner Up"
in "MSME Banking Excellence Award-2022" by CIMSME-New Delhi.
? Bank of India has been awarded "Dr. Ambedkar Business
Excellence Award" for lending to SC Entrepreneurs awarded by IFCI Venture Capital
Ltd.
? Bank has been recognized as "3rd best performing
bank in Agriculture Infrastructure Fund Scheme" under Atmanirbhar Scheme, a
flagship programme of GOI.
? Bank of India has secured "2nd position among all
banks( Public and Private) under NPS Diwas Recognition Programme" conferred by
PFRDA.
? Bank of India has secured 3rd rank under Digidhan
Mission setup by Meity (Ministry of Electronics and Information Technology) for
promotion of Digital Payments.
? Bank of India has awarded with "Best Fintech collaboration
(Runner-up)" and "Best IT risk and management (Runner- up)" at
IBA's 18th Annual Banking Technology Conference.
? Bank has been awarded with "NUMERO UNO EXEMPLARY AWARD OF PAR
EXCELLENCE" from PFRDA for best performance in PFRDA APY CAMPAIGN in SHINE &
SUCCEED 2022.
? Bank has won "AWARD OF EXCELLENCE" from PFRDA for
best performance in PFRDA APY CAMPAIGN MAKERS OF EXCELLENCE 5.0.
? Bank of India has been certified with "ISO 27001:2013 for
Information Security Management System" and "ISO 22301:2019 for Business
continuity Management System".
? Bank was awarded with "Runners-Up Award" in Finacle
Innovation Awards 2021 from M/s Infosys in Large Bank Segment for Category "COVID
Response Innovation"
VISION, STRATEGY AND FUTURE OUTLOOK:
• Expand the Bank's Retail, Agriculture and MSME (RAM) lending
profile by leveraging its existing customer base.
• Continue to contain funding cost by sourcing low cost deposits
such as CASA.
• Focus on improving asset quality and containing NPA levels.
• Leverage technology to increase cross selling opportunities,
reduce cost and enhance customer experience.
• Improving Risk Management Systems to ensure long-term
sustainability of our business.
DIRECTORS? RESPONSIBILITY STATEMENT:
The Directors confirm that in the preparation of the annual accounts
for the year ended March 31, 2023:
a) The applicable accounting standards have been followed along with
proper explanation relating to material departures, if any,
b) The accounting policies framed in accordance with the guidelines of
the Reserve Bank of India were consistently applied. Reasonable and prudent judgements and
estimates were made so as to give a true and fair view of the state of affairs of the Bank
at the end of the financial year and of the profit and loss of the Bank for the year ended
March 31, 2023.
c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of applicable laws governing banks in
India for safeguarding the assets of the Bank and for preventing and detecting fraud and
other irregularities,
d) Annual accounts have been prepared on a going concern basis,
e) Internal financial controls system to be followed by the Bank were
laid down and that such internal financial controls are adequate and were operating
effectively,
f) Proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
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