growth in deposits report 2015-16.pdf · growth in deposits 2 15-16 23.21% growth in deposits...
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23.21%Growth in Deposits
2 15-16
23.21%Growth in Deposits
16.94%Growth in Advances
Rs 223 Cr.Net Profit
Rs 1304 CrReserves
2.38%Gross NPAs reduced from 3.3%
13.48%CRAR
Committed for RejuvenatingRural Economy
we are with you!
th11 Annual Report 2015-16
Empowering Rural Lives
Chairman
With Best Compliments from
V. Narasi Reddy
Andhra Pradesh Grameena Vikas Bank
Head Office, Warangal - 506 001
we are with you! Annual Report 2015-16
01
Vision
Mission
Values
Repositioning the Bank in competitive rural market and accomplish the leadership spot in Rural Banking. Aspiring to realize
the vision of excelling in Rural Credit and SME. Pursuing the best practices for delivering the value added service to the
customers by transforming the key branches into profit and business centers.
With efficiency and service each one of us works in tandem to deliver quality rural service, no matter where our customers
choose to experience it. With the advantage of a large network in the rural hinterland, it is our duty and obligation to serve the
rural masses, the deprived and denied, retail and agriculture sectors through improved processes, deployment of technology,
with an emphasis on employment of rural youth, augmentation of agricultural production, upliftment of the downtrodden and
unabated service to rural poor with commitment to the sacred task of rural development and women's empowerment.
· Commitment for rural development
· Excellence in customer service
· Respect to systems and procedures
· Team Synergy
Vision, Mission and Values
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Andhra Pradesh Grameena Vikas Bank
Head Office : Warangal
Date: 30.06.2016
The Secretary,
Ministry of Finance, Dept. of Economic Affairs,
Banking Division, Government of India,
Parliament Street,
New Delhi-110001
Dear Sir,
In accordance with the provisions of Section 20 of the Regional Rural Banks Act 1976, I forward herewith
the following documents.
stA Report of Board of Directors as to the Bank's working and its activities during the period 1 April 2015 to st31 March 2016.
stA copy of the audited Balance Sheet and Profit and Loss Account for the year ended 31 March 2016.
stA copy of the Auditor's report in relation to the Bank's accounts for the period 1 April 2015 to st31 March 2016.
Letter of Transmittal
Yours faithfully,
(V. Narasi Reddy)Chairman
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What's inside
1. Board of Directors 06
2. Executives Team 07
3. Chairman's Message 10
4. Key Performance Indicators 16
5. Board of Directors Report 19
6. Auditor's Report 57
7. Balance Sheet, Profit & Loss 59
Account and Schedules
S.No. Particulars Page No.
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Geographical Area & Regional Offices
SrikakulamSaraswathi Complex, Baker sahed petaSrikakulam 532001, Tel 08942-221041, Fax [email protected]
Vizianagaram8-12-64/1, Himagiri Theatre, New S.P. BungalowVizianagaram 536002, Tel 08922-273956, Fax [email protected]
Visakhapatnam52-14-77/1, APHSC Building,Near Eenadu office, SeethammadharaVisakhapatnamTel 0891-2713942, Fax [email protected]
ParvathipuramVizianagaram Dist. 1435-27-112, Ist Floor, By Pass Road, Opp. Sai Ram CollegeTel : [email protected]
KhammamWyra Road, Khammam 507001Tel 08742-226816, Fax [email protected]
NalgondaRamgiri, Nalgonda 508001Tel 08682-229943, Fax [email protected]
Regions in Telangana State
WarangalABK Mall,Ramnagar, HanamkondaWarangal 506001Tel 0870-2577884Fax [email protected]
Mahabubnagar8-3-3/5/F, MettugaddaMahabubnagar 509001Tel 08542-242861Fax [email protected]
SangareddyMedak 502001Tel 08455-276263Fax [email protected]
AshoknagarRamachandrapuram MandalMedak 502032Tel 040-20040773Fax [email protected]
BhadrachalamBhadrachalamKhammam 507111Tel 08743-231492Fax [email protected]
Regions in Andhra Pradesh
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BOARD OF DIRECTORS
Shri V. Narasi ReddyChairman(General Manager on deputation from State Bank of India)
Nominees of Central Government under Section 9 (1) (a) of the Regional Rural Bank's Act, 1976
Shri C. Laxmunnaidu
Shri V. Hanumantha Reddy
Nominee of Reserve Bank of India under Section 9 (1) (b) of the Regional Rural Bank's Act 1976
Shri S. Chellapandi Asst. General Manager, Reserve Bank of India, Hyderabad
Nominee of NABARD under section 9 (1) (c) of the Regional Rural Bank's Act, 1976.
Shri V.S. Gupta, Deputy. General ManagerNABARD, TSRO, Hyderabad
Nominees of State Bank of India under Section 9 (1) (d) of the Regional Rural Bank's Act, 1976
Shri T.V. ReddyDeputy General Manager (ABU) State Bank of India, LHO, Hyderabad
Regional Manager, State Bank of India, Regional Business Office, Warangal
Shri K.V. Maruthi Rao
Nominees of State Government under Section 9 (1) (e) of Regional Rural Bank's Act, 1976
Smt K. Suntha, IASPrinciple Secretary, Institutional Finance, Finance Department, GOAP, Hyderabad Smt V. Karuna, IAS
District Collector & Magistrate, Warangal
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Executive Team
V. Narasi ReddyChairman
Shri T.V. Krishna ReddyGeneral Manager -II
Shri Y.N. SukumarGeneral Manager-I
Shri S. Prakash KumarGeneral Manager - III
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Our Mentors
Shri Hardayal PrasadChief General Manager,
State Bank of India, LHO, Hyderabad
Our Regulators
Shri R.N. DashRegional Director,
Reserve Bank of India, Hyderabad
Shri V.V.V. SatyanarayanaChief General Manager,
NABARD, RO, Telangana, Hyderabad
Shri Harish JavaChief General Manager,
NABARD, RO, AP, Hyderabad
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Shri Giridhara KiniGeneral Manager (NW-I),
State Bank of India, LHO, Hyderabad
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Deposits and Advances have crossed Rs 10000 Crore level each while total Business crossed Rs 20000 Crore mark.
Growth in Business Rs 3458.26 Crore (19.94%) (Rs 2658.98 Cr)
Growth in Deposits Rs 1922.11 Cr (23.21%) (Rs 1488.82 Cr)
Growth in Advances Rs 1536.15 Cr (16.94 %) (Rs 1170.19 Cr)
Net profit Rs 223.47 Crore (10.84%) (Rs 201.61 Crore)
Gross NPAs reduced from 3.30% to 2.38%
Net NPAs reduced from 2.48% to 1.40%.
The share of CASA has increased from 35.95%(31.03.2015) to 36.60% as on 31.03.2016 and surpassed the budget.
Cost of deposits which was on constant rise ever since 2011-12, started declining from 7.83% (31.03.2015) to 7.62% as on 31.03.2016.
Miscellaneous/other Income went up by 61.41%.
Agriculture Credit outstanding at Rs 4278.79 Crore (Rs 3637.32 Cr). Disbursed Rs 4052.60 Crore (Rs 2779.99 Crore)
Agriculture borrowers increased to 786306 during the year from 721132
Total No. of SHGs financed reached 184440 (176281) with outstanding credit of Rs 3984.69 Crore (Rs 3403.31 Cr). Disbursed Rs.
2773.82 Crore (Rs 2112.87 Cr) to 164382 Groups (139829 Groups).
Business per Branch Rs 27.70 Cr (Rs 23.82 Cr)
Business per Employee Rs 7.05 Cr ( Rs 6.10 Cr)
Net Profit per Employee Rs 7.57 Lakh (Rs 7.09 Lakh)
Opened 23 New Branches taking total to 751 (inaugurated online by CGM, SBI, LHO, Hyd)
Installed Bank’s own ATM in two of our Branches besides introducing Mobile ATM.
Implemented AEPS, Bio-metric authentication System in CBS, NACH, Interoperability of PMJDY Cards in other Bank’s Bank Mitras, IMPS,
Enabling our RuPay ATM Cards at PoS machines with merchants;
No. of transactions carried out by Bank Mitras during the year went up by 66%.
Total amount involved in BC transactions has gone up by 44%
Zero balance accounts maintained by BCs, has come down from 74.60% during previous FY to 32.16% during the year
No. of transactions carried out through Alternate Delivery Channels has increased to 19.3% from last year’s share of 8.1%.
Aadhar numbers have been seeded on to 18,53,871 Accounts as on 31.3.2016.
DBT through ABPS (Aadhar Payment Bridge System) 2591376 customers received LPG subsidy amounting to Rs 64.64 Crore.
PMJDY – opened 14,84,414 Basic Savings Bank Deposit Accounts as on 31.3.2016, of which 793627 accounts were provided with RuPay
Cards.
Stood first in Cross Selling (SBI Life)- Mobilized Rs 14.67 Cr business premium and Rs 2.00 Cr commission against the targets of Rs 10 Cr
& Rs 1 Cr respectively
Secured ASSOCHAM Social Banking Excellence Award for the Bank under Rural Banking category for 2015.
Bagged Special Award in recognition and appreciation of highest number of transactions in National Financial Switch (NFS) ATM
Network under the category of RRBs from NPCI.
Highlights 2015-16
Note : (Figures in brackets pertain to previous FY)
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Land mark performance
Our Business has grown by Rs 3458.26 Crore at 19.94% to reach Rs 20803.89 Crore, a significant achievement of Rs 20000 Crore business mark during the year. This has also taken our deposits and advances past Rs 10000 Crore level each. Net Profit increased to Rs 223.47 Crore during the year at a growth of 10.84%, inspite of upsurge in Salary expenditure by Rs 88 Crore on account of X Bipartite Wage revision.
Our Bank has surpassed the MoU targets set by our Sponsor Bank under major parameters, by registering Rs 10202.12 Crore deposits (23.21%) and Rs 10601.77 Crore advances (16.94%).
Non Performing Assets were reduced both in absolute terms and in percentage – from Rs 299.03 Crore (3.30%) to Rs 251.99 Crore (2.38%).
CASA which has been on a declining trend, has changed its course during the year. 25.43% growth in CASA outperformed the growth rate of 21.97% registered by Term deposits. The share of CASA has also increased from 35.95% to 36.60%. Strong marketing strategies and
Chairman’s Message
technology platform created have led to this improvement during the year.
Treasury operations, which yielded an income of Rs 29 Crore during the year, was another significant area the Bank has focused more during the year. Regional Rural Banks depend on their Sponsor Bank for treasury operations for our SLR requirements. We are however using our own expertise to offload the securities under AFS at opportune time for making money.
As the business grows and number of employees increases, it is necessary to sustain it for further growth. Technology is overtaking human intervention in most part of the operations and some portion of the banking transactions is taking the way of alternative delivery channels including outsiders (Bank Mitras) handling business on behalf of the bank leveraging technology. Unlike in big banks, technology here is not happening as a luxury or trendy feature to attract new x generation customers but as a means to reach the illiterate rural population, most of whom would have never visited a bank branch.
Multi dimensional transformation
V. Narasi ReddyChairman
It gives me immense pleasure to share that 2015-16 was a tremendous year for our Bank. We excelled in all business parameters including profitability. Our clear and strategic focus on achieving quality standards in assets and liabilities, such as data purification, compliance, internal processes, Financial Inclusion etc., and the response and dedication of all staff members, lent credence to the business growth that outperformed the industry levels.
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Yours sincerely,
(V. Narasi Reddy)
Chairman
With continuous retirements, Staff profile has changed
dramatically in recent years. This year the ratio of newly
recruited staff with four to five years of experience has
increased to 60%. The Bank has reached a stage where
the administrative posts at various levels had to be filled up
with newly recruited officers with moderate experience. It
is important to sensitize them to the challenges of rural
banking.
Augmenting the administrative structure and overhauling
the existing systems and practices were taken up during
the year to give a safe passage to the transformation that is
happening. Roles, responsibilities, accountability,
empowerment, rights have been drilled into the system
and entities at various levels of administration. A tree
structure has been designed and put in place throughout
the administrative hierarchy where everybody supports the
system and holds responsibility to help the system on right
path. This is not only creating a sound business model
resulting in superior performance but also making them
feel part of the organisation's success.
We live at a time where how we are doing is much more
focused than what we are doing. Technology is sweeping
the entire landscape impacting the lives of literate and
illiterate, rich and poor, aware and ignorant, urban and
rural. Failing to be part of the movement or even
involuntary exclusion from this phenomenon means
losing the playground and fading away.
It is a matter of pride that we made decent strides in
embracing the technology driven products / services. This
is changing the way we operate radically, on par with any
commercial bank. The significant IT initiatives introduced
during this year include AEPS, e-KYC, IMPS, NACH,
Mobile ATM, setting up of our own ATM, 100% Biometric
Authentication System etc. RuPay Cards issued by us have
percolated into the system well and the number of hits has
increased considerably. NPCI has indeed presented a
Special Award to our Bank in appreciation and
recognition for highest transaction volume among RRBs in
NFS ATM network. This has indeed boosted our
confidence levels in pushing through the new IT initiatives.
Most noteworthy feature during this year is consolidation
and streamlining of Bank Mitra activities. A detailed
reporting system has been designed and put in place
which enables each level of the administration to know the
activities and performance or non performance of the
Bank Mitras – Bank Mitra wise, branch wise, Region wise
and bank wise. Monitoring has been strengthened
Technology
through adequate staffing at strategic points and
continuous review through audio conference.
With these initiatives, there was significant shift of banking
transactions from a formal branch banking to alternative
delivery modes, thanks to NPCI which is creating huge
platforms using latest technologies for retail payments.
The future lies in moving away from formal branch
banking and extend banking services. RBI has issued
permission to launch Mobile and Internet Banking
facilities. We are making arrangements to take this
facility to the customers in a big way in the next financial
year.
During this year, the media has focused on our
achievements very well, thereby taking our Bank's name
and activities deep into the public. The Mobile ATM
launched by us has attracted huge media attention and TV
channels ran stories on this new initiative. I am thankful to
the press for ever.
During the year, we had the fortune of having the Chief
General Manager of State Bank of India, Local Head
Office, Hyderabad Shri Hardayal Prasad twice in our
premises. His encouraging words on our business
achievements, particularly reduction of NPAs and
maintaining asset quality has been of great motivation.
We will continue to achieve newer milestones.
Media focus on our Bank
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Deposits Advances Business
(Rs in Crores)
ProfitProfit
0
50
100
150
200
250
300
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2015-16
37
69
103 108 120
159180
223
(Rs in Crores)
2013-14
2014-15
2005-06
202
1237
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-140
2000
4000
6000
8000
10000
12000
14000
16000
2188
1813
4001
2718
2095
4813
2934
2701
5635
3394
3304
6698
3805 38
7076
75
4795 48
9496
89
5133 55
3310
686
5869
6590
1245
9
6791
7895
1468
7
2014-15
8280 90
6617
346
18000
20000Business Business
2015-16
1020
210
602
2080
4
25000
0
200
400
600
800
1000
1200
2007-08
2008-09
2009-102010-11
2011-12
2012-13
2014-15
2015-16
152221
311419
539
698
879
1080
ReservesReserves (Rs in Crores)
2013-14
1400 1304
0
100
200
300
400
500
600
2005-06
2006-07
2007-082008-09
2009-10
2010-11
2012-13
2013-14
No. of BranchesNo. of Branches
2011-12
700
800
2014-15
2015-16
483 483 483527 538 553
574638
704728 751
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0
5
10
15
20
25
30
Per Branch ProfitPer Branch Profit
4.772.44
7.65
13.14
19.14 19.5320.91
24.9225.64
Per Emp ProfitPer Emp Profit
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-140
5
10
15
20
25
Per Branch BusinessPer Branch Business
8.28 9.9611.67 12.7
14.26
17.52 18.6
19.5320.86
2005
-06
0
1
2
3
4
5
6
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2013
-14
1.76
2.132.54
3.10
3.49
4.334.54
5.025.34
Per Emp BusinessPer Emp Business
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140
500
1000
1500
2000
25002277 2262 2215 2160 2202 2236 2354 2477
27433000
No. of StaffNo. of Staff
2843
2014-15
30
2014
-15
23.827
6.10
2014
-15
27.69
0.52
1.67
3.21
4.684.83
5.08
6.48 6.577.09
3500
2015-16
2951
2015
-16
27.78
2015
-16
2012
-13
7.05
35
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
29.75
2005
-06
0
1
2
3
4
5
6
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2013
-14
7
2014
-15
8
2015
-16
2012
-13
1.01
7.57
(Rs in Crores) (Rs in Crores)
(Rs in Lakhs) (Rs in Lakhs)
AWARDSAPGVB gets Best IT Enabled Bank Award from IDRBT, Hyderabad
Congratulations to all and BIG THANKS to our valuable customers for reposing their confidence on us.
Dr. Raghuram G Rajan, RBI Governor has conferred the Best IT Enabled Bank Award to Andhra Pradesh Grameena Vikas Bank (an SBI sponsored RRB), among all RRBs in the Country, in a programme organized today at IDRBT, Hyderabad under its Technology Excellence Awards for Banks – 2015-16 programme.
Shri V. Narasi Reddy, Chairman and Shri Y.N. Sukumar, General Manager-I, APGVB has received the Award from the Governor.
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NPCI Special Award
o Our Bank has bagged Special Award in recognition and
appreciation of highest number of transactions in
National Financial Switch (NFS) ATM Network under the
category of RRBs. An eminent and independent panel of
jury constituted by NPCI has built the framework for
monitoring the evaluation process.
o RBI Dy Governor Mr R Gandhi, who was the Chief Guest
in the National Payments Awards Function 2015,
organized by NPCI on 22.12.15 in Mumbai, presented
the Special Award to APGVB for excellent performance
in their product NFS.
Our Bank is the Winner of Social Banking Excellence
Awards 2015 under Rural Banking Category awarded by
ASSOCHAM.
o Hon'ble Minister of state for Finance, Shri Jayant
Sinha, who was the Chief Guest for the 11th Annual
Banking Summit, has presented the Award to Shri V.
Narasi Reddy, Chairman, APGVB in Mumbai today.
o ASSOCHAM Social Banking Excellence Award is a
way to recognize, reward and celebrate models of
inclusive growth for sustainable development as
well as innovative approaches towards creating
value for society and business together. The Awards
to seek to identify and honour Banks and provide role
models of best practices to other Banks. Rural
Banking includes rewarding the rural activities
undertaken by the bank in inculcating banking
habits and promoting banking culture in the
members of the rural society including rural women,
rural service providers and rural businessmen
o APGVB's contribution to inclusive growth through its
rural banking activities has been recognized based
on the volumes in its operations as on 31.3.15 and
the massive impact created by APGVB on the rural
society.
o Shri V. Narasi Reddy is seen receiving the Award from
the Minister of State for Finance Shri Jayant Sinha.
Seen in the Picture is SBI's MD Shri P. Sreeram.
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KEY PERFORMANCE INDICATORSIndicators 2014-15 2015-162013-14
A KEY PERFORMANCE INDICATORS
1 No. of Districts covered 8 8 8
2 No. of branches 704 728 751
a) Rural 509 520 531
b) Semi urban 148 149 156
c) Urban 47 49 49
d) Metropolitan ….. 10 15
Ultra-Small Branches 488 493 488
3 Total Staff (excluding Sponsor Bank Staff) 2743 2843 2951
of which, Officers 1701 1660 1773
4 Deposits 67911806 82800015 102021153
Growth % 15.71 21.92 23.21
5 Borrowings outstanding 22803839 32079962 37337981
6 Gross Loans & Advances outstanding 78954212 90656121 106017675
Growth % 19.82 14.82 16.94
of 6 above, loans to Priority Sector 65098351 77385394 91912049
of 6 above, loans to Non Target Groups 13855861 13270727 15767667
of 6 above, loans to SC/ST 13422231 16250932 19308609
of 6 above, loans to SF/MF/AL 24271384 27782661 56544544
of 6 above, loans to Minorities 3158172 4643178 5516810
7 CD Ratio 116.26 109.49 103.92
8 Investments Outstanding 26599025 48483582 51960779
SLR Investments Outstanding 16633397 17956129 22886427
Non-SLR Investment Outstanding 9965628 30527453 29074352
B. AVERAGE
9 Average Deposits 60203159 73893516 91112765
Growth % 15.52 22.74 23.30
10 Average Borrowings 28764388 26247121 41682772
Growth % 8.91 -8.75 58.81
11 Average Gross Loans And Advances 70659351 80183390 94881573
Growth 15.4 13.48 18.33
12 Average Investments 27702372 32715306 49375579
Growth % 115.79 18.10 50.93
Average SLR investments 14202143 16897617 20501769
as % to average deposits 23.59 22.87 21.33
Average Non-SLR Investments 13500229 15817689 28873810
as % to Average deposits 22.42 21.41 82.54
13 Average working funds 109001922 123134237 158988248
Rs. in 000's
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Indicators 2014-15 2015-162013-14
Rs. in 000's
C LOANS ISSUED DURING THE YEAR
14 Loans issued during the year 51919118 67975850 91722339
Growth % 2.01 30.92 34.94
of 14 above, loans to Priority Sector 34949580 51332447 71366527
of 14 above, loans to Non-target Groups 16969538 16643403 23077341
of 14 above, SC/ST 10484874 14274928 1926191
D PRODUCTIVITY
15 Per Branch 208617 238264 277016
Per Staff 53425 61012 70498
E RECOVERY PERFORMANCE
16 TOTAL
Demand 57704721 61206745 77776039
Recovery 45132478 47524012 64303445
Over dues 12572247 13682733 13472594
Recovery % 78.21 77.65 82.68
(June position)
17 FARM SECTOR
Demand 20020979 20130889 37592669
Recovery 9781119 9261699 26551169
Over dues 10239860 10869190 11041500
Recovery % 48.85 46.01 70.673
(June position)
18 NON-FARM SECTOR
Demand 37683742 41075856 40183370
Recovery 35351359 38262313 37752276
Over dues 2332383 2813543 2431094
Recovery % 93.81 93.15 93.95
(June position)
F ASSETS CLASSIFICATION
19 (a) Standard 75456049 87665819 103497691
(b) Sub-Standard 1595302 1650916 776023
(c) Doubtful 1892399 1332516 1736300
(d) Loss 10462 6870 7661
Total 78954212 90656121 106017675
Std.Assets as % to Gross Loans & Advances out standings 95.57 96.70 97.62
G PROFITABILITY ANALYSIS
21 Interest paid on
a) Deposits 4633385 5787730 6946094
b) Borrowings 2401763 2035532 2739088
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Rs. in 000's
Indicators 2014-15 2015-162013-14
22 Salary 1399743 1514481 2357204
23 Other Operating Expenses 927612 718632 1010451
24 Provisions made during the year
(a) Against NPA's 253451 62810 303449
(b) Other Provisions -286813 385028 -306919
(c) Amortization
25 Interest received on
(a) Loans & Advances 8659163 9939772 11047289
(b) Investments 2367031 2498841 3799661
26 Other Income 751509 1000939 1614741
27 Loss / Profit 1805331 2016072 2234707
H Other information
28 Share Capital Deposit Received 890850 890850 Nill
29 DI & CGC - - -
(a) Claims settled cumulative - - -
(b) Claims received but pending adjustment - - -
(c) Claims pending with Corporation - - -
30 Cumulative Provision
(a) Against NPAs 713542 750217 1043312
(b) Against Standard Assets 216777 248155 292611
(c) Against Intangible Assets 197857 472563 121188
Frauds etc.
31 Interest Derecognized
(a) During the year Nill Nill Nill
(b) Cumulative Nill Nill Nill
32 Loans Written off during the year
(a) No. of Accounts 9339 137 35
(b) Amount 44344 2277.82 2098
33 Accumulated loss Nil Nil Nil
34 Reserves 8786546 10802618 13037325
Net NPAs 2550101 2224258 1476672
% Provisions to gross NPAs 20.39 25.08 41.40
% Gross NPAs to advances 4.43 3.30 2.38
% Net NPAs advances 3.27 2.48 1.41
CRAR 13.26 13.45 13.48
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Board of Directors Report 2015-16
Teaming Up
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(Sponsored by State Bank of India)
BOARD OF DIRECTOR REPORT 2015-16'S
Profit Analysis
The Bank registered a Net Profit of Rs 223.47 Crore for the
year 2015-16 as against Rs 201.61 Crore for the previous
FY 2014-15 at a growth rate of 10.84%.
Inspite of a hike of Rs 78 Crore in Employees cost on
account of X Bipartite Settlement and a hike of Rs 18 Crore
on account of provisions for Gratuity and leave
Encashment over previous year and a fresh provision of Rs
30.44 Crore towards NPAs, the Bank could surpass its Net
Profit target of Rs 211.69 Crore.
Recovery of AUCA to the extent of Rs 6.67 Crore, increase
in Non-fund based income by Rs 35 Crore, profit from
sale of investments to a tune of Rs 26.27 Crore and
reduction in NPAs resulting in less additional provisions
have improved the net profitability of the Bank.
The Operating profit of the Bank stood at Rs 340.89 Crore
as on 31.3.16 vis-à-vis previous FY's figure of Rs 338.32
Crore. There is a marginal increase of Rs 2.57 Crore in
operating profit during the year. This is due to increase in
Staff wages, Gratuity and Leave encashment etc., by Rs
95.35 Crore over 2014-15. However, the Net profit of the
Bank has been on the rise continuously in the last nine
years.
Income and Expenditure (Rs in Crores)
BusinessBusiness
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140
56356698
7675
9689
10686
12459
14687
(Rs in Crores)
2014-15
17346
ProfitProfit
0
50
100
150
200
250
300
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2015-16
37
69
103 108 120
159180
223
(Rs in Crores)
thWe have pleasure in presenting the 11 Annual Report of
Andhra Pradesh Grameena Vikas Bank (APGVB) together
with the Audited Statement of Accounts, Auditors' Report
and the report on business and operations of the Bank for stthe financial year ended on 31 March 2016.
The Bank's business has registered a growth of Rs 3458.26 stCrore at 19.94% to reach Rs 20803.89 Crore as on 31
March 2016 as against Rs 17345.62 Crore as on
31.3.15. This growth in business over March 2015 level,
is impressive vis-à-vis the growth of Rs 2658.98 Cr in
2014-15.
56% of the business growth of Rs 3458.26 Crore was
contributed by Deposits and the remaining 44% by loans
and advances with an absolute growth of Rs 1922.11 Cr
and Rs 1536.15 Cr respectively. The distribution of
growth between deposits and advances in FY 2014-15
was also at the same ratio.
Business Review
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
25000
2015-16
20804
2013-14
2014-15
202
Particulars 2013-14 2014-15 2015-16 Growth %
Interest Income
Interest Expenditure
Non-Interest Income
Non-Interest Expenditure
Gross Profit/Operating profit
Taxes
Deferred Tax Asset & Earlier year adjustments (excess)
Provisions and Contingencies
Prior Perioddepreciation & rent
Net Profit
1102.62 1243.86 1484.70 19.36
703.51 782.33 968.52 23.80
75.16 100.09 161.47 61.32
231.29 223.31 336.76 50.81
242.97 338.32 340.89 0.76
68.82 90.00 107.62 19.58
-3.05 1.93 10.14 425.38
-3.33 44.78 -0.35 -
0 0 0 0
180.53 201.61 223.47 10.84
21
we are with you! Annual Report 2015-16
(Rs in Crores)Interest Income on Advances
Interest Income on Investments
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140.00
200.00
400.00
600.00
800.00
1000.00
1200.00
319.
7112
7.46
428.
3314
9.06
515.
76
127.
23
599.
4918
6.12 20
2.83
762.
40 865.
9223
8.83
1104
.73
379.
97
2015-16
Net Interest Income
The net interest income has increased to Rs 516.18 crore during
the year vis-à-vis Rs 461.54 crores in 2014-15 with a growth rate
of 11.84%. Growth in CASA this year has impacted the rise in
Net Interest Income during the year
Interest Expenditure
o
O
Interest paid on deposits has increased to Rs 694.61
Crore from the last FY's figure of Rs 578.77 Crore by Rs
115.84 Crore (20.01%). The increase in interest paid
on deposits was subdued vis-à-vis deposits growth of
23.21%. CASA grew by 25.43% while term deposits
grew by 21.97%.
The Bank has paid Rs 273.91 Crore towards interest on
borrowings (refinance from NABARD, SBI and NHB)
during the year as against Rs 203.55 Crore of FY
2014-15 with an increase of Rs 70.36 Crore. The year
2014-15 had a decline of Rs 36.63 Cr under this head
when compared to FY 2013-14.
2008-09
2009-10
2010-11
2011-12
2012-13
2013-140.00
200.00
400.00
600.00
800.00
1000.00
1200.00
447.
1726
2.18
577.
3932
6.00
642.
9835
7.29
785.
6051
2.74
590.
40
965.
32 1102
.62
703.
52
Interest Income
Interest Expenditure
1400.00
1243
.86
782.
32
2014-15
Operating expenditure
Interest Income
o
O
O
O
Operating expenditure has increased by Rs 113.46
Crore (at 50.81%) from Rs 223.31 Crore in 2014-15
to Rs 336.77 Crore in current fiscal. This is in sharp
contrast to a decline of Rs 7.98 Crore during previous
FY. Staff related expenditure like X Bipartite
Settlement implementation, Gratuity and Leave
Encashment increased by Rs 103.19 Crore over
2014-15, propelled the operating expenditure. All
other heads of expenditure have registered normal
growth.
Interest income increased from Rs 1243.86 Crore to
Rs 1484.70 Crore during the FY with an absolute
growth of Rs 240.84 Crore (at 19.36%)
The Bank has earned an interest income of Rs
1104.73 Crore from loans and advances in current
fiscal as against Rs 993.98 Crore in 2014-15 with an
increase of Rs 110.75 Crore (@ 11.14%).
The interest income received from investments has
increased by Rs 130.08 Crore at 52.06% to reach Rs
379.97 Crore as against Rs 249.89 Crore in the
previous FY. The growth rate has increased
substantially from 5.57% registered during FY 2014-
15 to 52.06%.
2015-16
1484
.70
968.
52
1600.00
(Rs in Crores)
Interest paid on Borrowings
Interest paid on Depostits
0.00
100.00
200.00
300.00
400.00
500.00
600.00
169.
9492
.24
212.
6311
3.37
227.
4712
9.82 32
6.93
185.
82 200.
0839
0.32 46
3.34
240.
18
700.00
578.
77
203.
55
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
800.00
694.
6127
3.91 2014-15
993.
9824
9.89
(Rs in Crores)
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we are with you! Annual Report 2015-16
Provision for NPAs:
The Bank has made a provision of Rs 30.44 Cr on NPAs during the year, taking the total Provisions available on
Advances to Rs133.59 Cr (including cumulative provision of Rs 29.26 Cr on Standard Assets).
(Rs in Crore)
Ratio Analysis
S.No. Ratios 2012-13 2013-14 2014-15 2015-16
Amt / Ratio % Change
1 Yield on advances 12.45 12.25 12.40 11.64 -6.13
2 Yield on investments 8.65 8.58 7.73 8.29 7.24
3 Cost of deposits 7.49 7.70 7.83 7.62 -2.68
4 Cost of borrowings 7.58 8.35 7.76 6.57 -15.33
5 Avg. cost of funds 6.19 6.45 6.35 6.09 -4.09
6 Avg. return of funds 10.19 10.13 10.13 10.35 2.17
7 Cost of management 2.13 2.14 1.81 2.12 17.13
8 Misc .Income as % to Working Funds 0.80 0.68 0.79 0.83 5.06
9 Net Margin 2.67 2.36 2.14 2.98 39.25
10 Financial Margin 4.00 3.76 3.78 4.26 12.70
11 Risk Cost 0.56 0.68 0.62 0.67 8.06
12 Return on Assets 10.22 10.9 1.64 1.41 -14.02
13 Gross Rate of return 1.40 1.38 1.31 1.20 -8.40
14 Expenses ratio 45.10 46.79 39.76 49.70 25.00
15 Gross NPAs 267.45 343.28 299.03 252.00 -15.73
16 Net NPAs 172.81 228.56 224.25 147.67 -34.15
17 % Provisions to gross NPAs 22.26 26.81 25.08 41.40 65.07
18 % Gross NPAs to advances 4.06 4.35 3.30 2.37 -28.18
19 % Net NPAs to advances 3.00 2.94 2.47 1.40 -43.32
20 CRAR 12.91 13.26 13.45 13.48 0.22
Balance Sheet Size
Capital & Reserves
The balance sheet size amounted to Rs 16173.34 with a
moderate increase of Rs.2574.60 Crores over March
2015 level.
Pursuant to The Regional Rural Banks (Amendment Act)
2015, published by Ministry of Law and Justice on May 12,
2015 and as per the letters from NABARD and the
Sponsored Bank, the Bank with the approval of the Board
has:
I. Raised the Authorized Capital of the Bank from
5,00,000 Equity Shares of Rs. 100/- each aggregating
to Rs. 5 Crores to 200,00,00,000 Equity Shares of Rs.
10/- each aggregating to Rs. 2000 Crores
Assets 2012-13 2013-14 2014-15 2015-16
O/s Provisions O/s Provisions O/s Provisions O/s Provisions
Standard
Sub Standard
Bad & Doubtful
Loss
Total
6322.13 18.30 7545.60 21.68 8766.58 24.82 10349.77 29.26
148.74 13.97 159.53 15.11 165.09 17.36 77.60 12.00
118.71 38.61 189.24 55.25 133.25 56.98 173.63 91.56
1.05 0.99 0.68 0.68 0.76 0.76
6589.58 70.88 7895.42 93.03 9065.60 99.84 10601.77 133.59
23
we are with you! Annual Report 2015-16
3.6 a. Adjusted value of funded risk assets i.e., balance sheet items
b. Adjusted value of non- funded risk assets i.e., balance sheet items 0 0
c. a+b
d. Percentage of Capital (Tier-I + Tier II) to Risk Weighted Assets
7576.88 9256.00 10663.00
0
7576.88 9256.00 10663.00
13.26 13.45 13.48
2 Tier-II
a. Undisclosed Reserves
b. Revaluation Reserves
c. General Provisions & Reserves
d. Investment fluctuations Reserves / Fund
Total Tier-II Capital
Grand Total (Tier I + Tier II)
31.99 70.49 39.94
31.99 70.49 39.94
1004.73 1244.84 1437.75
1 Tier-I
a. Paid up Capital
b. Share Capital Deposit
c. Statutory Reserves & Surplus
d. Capital Reserves 0.01 0.01
e. Other Reserves 14.31 14.31
f. Surplus in P&L
Total Tier-I Capital
Capital 2013-14 2014-15 2015-16
5 5 94.08
89.08 89.08 Nill
177.06 217.39 262.08
0.01
14.31
687.26 848.55 1027.33
878.65 1080.261303.73
972.74 1174.35 1397.81
Net worth
Net worth of the Bank stood at 1397.81 Crore with a
growth of Rs 223.47 Crore (19.03%) over previous FY's
figure of Rs 1174.35 Crore.
The capital adequacy ratio has further strengthened to
reach 13.48% at the end of the year vis-à-vis 13.45% as
on 31.03.15 well above the level of minimum 9%
stipulated by Dr. K.C Chakravarthi Committee
The following table gives the position of Tier-I, Tier-II
Capital, Reserves and computation of CAR.
(Rs in Crore)
Deposits
Deposits registered an impressive growth of Rs 1922.11
Crore over March 2015 level at a growth rate of 23.21%.
This growth is the highest in the history of the Bank. Total
deposits as on 31.3.2016 stands at Rs 10202.11 Crore as
against Rs 8280.01 Crore as on 31.3.2015.
Ii. Converted Share Capital Deposit of Rs. 89,08,50,000
by issuing 8,90,85,000 Equity Shares of Rs. 10/- each.
The conversion of share capital deposit into Equity
Capital has not altered the shareholding pattern of the
Bank
Accordingly, he Bank's paid up capital stood at Rs
94,08,50,000 (9,40,85,000 shares of Rs 10 each),
subscribed by Government of India, State Government
and State Bank of India in the ratio of 50:15:35. The
Reserves increased by Rs 223.47 Crore at 20.69% from Rs
1080.26 Cr as on 31.03.15 to Rs 1303.73 Cr as on
31.03.16.
There has been a consistent growth on month to month
basis except a marginal fall in April and August 2015.
0
200
400
600
800
1000
1200
2007-08
2008-09
2009-102010-11
2011-12
2012-13
2014-15
2015-16
152221
311419
539
698
879
1080
ReservesReserves (Rs in Crores)
2013-14
1400 1304
(Rs. In Crores)Deposits growth in 2015-16Deposits growth in 2015-16
0
2000
6000
4000
8000
Mar-1
5Apr
i-15
May-1
5Ju
n-15
Jul-1
5Aug
-15
Sep-1
5Oct-
15Nov
-15
Dec-1
5Ja
n-16
10000
12000
(Rs. In Crores)DepositsDeposits
0
2000
6000
4000
8000
2934 3394 38054795
51535869
6791
10202
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
8280.0110000
12000
Feb-1
6Mar
-16
8280
8077
8252
8530
8919
8845
8997
9084
92139502
9671
10006
10202
24
we are with you! Annual Report 2015-16
(Rs. in Crores)
Deposit mix 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Current A/c
Growth
Growth %age
Savings Bank A/c
Growth
Growth %age
Total CASA
Growth
Growth %age
179.38 123.56 122.96 55.41 52.44 59.34
49.58 -55.82 -0.6 -67.55 -2.97 6.90
38.20 -31.12 -0.49 -54.94 -5.36 13.16
2212.19 1839.50 2154.50 2398.34 2924.33 3674.42
644.51 -372.7 315.02 243.84 525.99 750.09
41.11 -16.85 17.13 11.32 21.93 25.65
2391.57 1963.10 2277.5 2453.75 2976.77 3733.76
694.09 -428.52 314.40 176.25 523.02 756.99
40.89 -17.92 16.01 7.74 21.32 25.43
Term Deposits 2403.14 3183.60 3591.70 4337.43 5303.23 6468.35
Growth 296.11 780.47 408.09 745.73 965.80 1165.12
Growth %age 14.05 32.48 12.82 20.76 22.27 21.97
Total deposits 4794.71 5146.70 5869.20 6791.18 8280.01 10202.1
Growth 990.20 351.96 722.47 921.99 1488.82 1922.1
Growth %age 26.03 7.34 14.04 15.71 21.92 23.21
Deposit Mix
CASA deposits grew by Rs 756.99 Crore at 25.43% to reach Rs 3733.77 as against Rs 2976.77 Cr. Term Deposits
grew by Rs 1165.12 Crore to reach a level of Rs 6468.35 Crore at 21.97% as against Rs 5303.23 Crore. The growth
of 25.43% in CASA during the year 2015-16 has been stupendous when compared with CASA growth rates of 7.74%
in 2013-14 and 16.01% in 2012-13 and 21.32% in 2014-15.
A CASA campaign was conducted from 01-12-2015 to 29-02-2016 and we were able to mobilize Rs 455.49 Crore
during the campaign, raising the CASA share by 1.79%. During the campaign period 1,14,261 new CASA accounts
were opened. High / bulk cost deposits have been consciously discouraged and more focus given to CASA. Thereby,
we are able to reduce the cost of deposits by 0.21% from 7.83 to 7.62.
The share of CASA has increased from 35.95% (31.03.2015) to 36.60% as on 31.03.2016
Borrowings
stThe aggregate borrowings of the Bank as on 31 March 2016 stood at Rs. 3733.80 Crore whereas it was Rs. 3207.99 stCrore as on 31 march 2015.
Institution 2015-16 2014-15 Variance
1 NABARD -403.21
2 SBI 969.67
3 NHB -40.65
3051.74
34.94
121.31
3207.99 525.81
S.No
2648.53
1004.61
80.66
3733.80
The Bank has availed refinance against Crop loan disbursements from NABARD and SBI at 40% and 50% respectively.
Refinance against SHG disbursements and Rural Housing was provided by NABARD and NHB respectively @ 100%.
25
we are with you! Annual Report 2015-16
Assets
Investments
Total investments portfolio– both SLR and Non-SLR - of the Bank has increased to Rs 5196.08 Crore as on 31.3.16 from previous year's
level of Rs 4848.35 Crore by Rs 347.73 Crore @ 7.17%.
(Rs in Crores)
Investments
999.69 1104.97 1339.44 1663.34 1795.61 2288.64
240.79 105.28 234.47 323.90 132.27 493.03
31.73 10.53 21.22 24.18 7.95 27.46
1147.58 1272.01 1778.3 996.56 3052.74 2907.44
244.32 124.43 506.28 -781.73 2056.18 -145.3
27.05 10.84 39.80 -43.96 206.33 -4.76
2147.28 2376.98 3117.7 2659.90 4848.35 5196.08
485.11 229.70 740.75 -457.83 2188.45 347.73
29.19 10.70 31.16 -14.68 82.28 7.17
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
SLR
Growth
Growth %age
Non SLR Investments
Growth
Growth %age
Total Investments
Growth
Growth %age
Investment Policy
The Bank has an Investment Policy in conformity with the
instructions received from RBI/NABARD/Sponsor Bank,
approved by the Board, in terms of which investments are
made.
The Investment Committee comprising of the following
members take investment decisions:
1. Chairman
2. General Manager - I
3. General Manager - II
4. General Manager - III
5. Chief Manager (Accts)
6. Chief Manager (Planning & Devp)
7. Chief Manager (Credit)
8. Chief Manager (IT)
The quorum of the Investment Committee is 5 (Five) and
the Committee should meet preferably in the presence
of Chairman.
The Investment Committee meets periodically to review
the funds position and decide the deployment of funds
in SLR and Non-SLR avenues.
SLR Investments
Non SLR Investments
CRR and SLR
In terms of Section 24 of the BR Act 1949, the Bank has
maintained investments in the avenues laid down in the
Policy, to fulfill the SLR requirements. All SLR investments
are made in GOI/State Govt Securities only. The
purchase and sale of Govt Securities are undertaken by
the Portfolio Management Services Department of State
Bank of India.
Non-SLR investments are invested in TDRs of Banks. The
Bank has been monitoring and following up for prompt
receipt of interest due from Govt Securities /Bonds. There
was no instance of income leakage from Non-SLR
investments portfolio.
The Bank has complied with the regulatory requirement of
maintenance of adequate balances towards CRR and SLR.
There is a well laid down system of assessing the CRR and
SLR requirements taking into account the NDTL. There
was no default in maintenance of adequate balances
during the year. The Bank has kept Rs 430.47 crore in CRR
and Rs 2379.58 crores in SLR as on 31.03.2016.
26
we are with you! Annual Report 2015-16
Cash Management Product (CMP):
Credit Portfolio
Credit to Agriculture
Kisan Credit Cards
CMP was introduced during the previous FY by entering
into an agreement with SBI at 86 Branches. During the
current year, CMP was introduced with SBH also covering
66 Branches. Under the agreement an amount of Rs
58.05 Crores w i l l be t rans fe r red to 152
branches/Regional Offices every morning and at the end
of the day the available balances will be transferred to our
OD accounts at SBI/SBH, Hanamkonda.
The credit portfolio of the Bank rose by 16.94% to Rs
10601.77 Crore during the financial year ended
31.03.2016 from the previous year level of Rs 9065.61
Crore, thus showing an absolute growth of 1536.15 Crore
as against the target of Rs 1269.19 Crore. The number of
loan accounts increased by 6.55% to 1249916 as on
31.3.2016 from the previous year's position of 1173076
accounts as on 31.3.2015, showing a growth of 76840
accounts.
Total credit to agriculture including allied activities
excluding agriculture-portion of SHG lending, stood at Rs
4278.79 Crore as on 31.3.2016 as against Rs 3637.32
Crore with a growth of Rs 641.47 Crore (@ 17.64 %).
Total number of Bank's borrowers in Agriculture sector has
increased to 786306 vis-a-vis 720816 in FY 2014-15,
with an increase of 65490 more than 90 % of the credit to
SHG finance is also towards agriculture.
The Bank has disbursed Rs 5716.29 Crore to the
agriculture during the year as against the previous year's
disbursal of Rs 3834.79 Crore.
Total credit to agriculture and allied activities constitutes
40.35 % of the total credit portfolio as on 31.3.2016 vis-à-
vis 40.12 % as at the end of previous FY.
As per the directions of Government of India and
NABARD, we have implemented revised Kisan Credit Card
System for crop loan borrowers from Kharif 2012.
According to the guidelines of revised KCC, we have
created a new product KCC-cum-SB account in the CBS
for a period of 5 years. As per this system, the farmers can
remit their surplus funds in the KCC account and can draw
according to their requirement and they need not
maintain separate Savings Bank account. There is a
provision for giving interest as applicable for Savings
Bank account for the credit balances in the KCC account.
Further, loan limits will be fixed for 5 years and documents
will be obtained for the terminal limit. Year-wise limits will
be fixed basing on present Scales of Finance and keeping
in view the future cost of investment.
We have issued 765573 KCCs as on 31.3.16 with an
outstanding credit of Rs 4141.60 Crore as against
previous FY level of 691652 KCCs and Rs 3472.83
respectively.
During the year 2015-16, we have issued 650989 KCC
cards and disbursed an amount of Rs 3888.24 Crore as
against 505221 cards and Rs 2759.62 Crores
respectively during the year 2014-15. Instructions were
issued to all the branches to cover all KCC holders up to
the age of 70 under Personal Accident Insurance Scheme,
during the three year card holding period, with risk
coverage of Rs.50,000/-. The annual premium of Rs.20/-
was jointly borne by the Bank Rs.13/- and the borrower
Rs.7/-.
We have financed 6994 tenant farmers under the Loan
Eligibility Cards Scheme with a credit outstanding of Rs
14.86 Crore during the year 2015-16. AP Land Licensed
Cultivators Ordinance aims at ensuring loan and other
benefits to tenant farmers, by means of Loan Eligibility
Cards.
JLGs are expected to overcome the problem of tenant
farmers getting deprived of institutional credit. The Bank
has financed an amount of Rs 72.58 Crores to the JLGs
during the year. This year we proposed to form 7520
JLGs with minimum 10 JLGs of each branch.
NABARD has sanctioned a grant assistance of Rs 13.28
lakhs for formation and linkage of 1328 JLGs during the
year in Telangana state.
Government of Andhra Pradesh has been implementing
“Vaddileni Runalu/ Pavala vaddi”. Under “RythuSri”
scheme i.e., reimbursement of interest for prompt payers
Tenant Farmers – Loan Eligibility Card Holders
Joint Liability Groups (JLGs)
Crop Loans - Vaddileni Runalu / Pavala Vaddi –
27
we are with you! Annual Report 2015-16
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2011
-12
2012
-13
2010
-11
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
6014
0 8283
5
1063
50 1397
08 1610
77
1722
60
1633
08
1601
86
No of SHGsNo of SHGs
2013
-14
1633
8820
14-1
5
1844
40
of crop loan borrowers from Rabi 2011-12. Under the VLR
Scheme, farmers need not pay the interest portion. We
have however submitted our claim of Rs 61,17,76,887.60
and Rs 1,67,08,697.00 to the State Governments of
Telangana and AP respectively during the year 2015-16.
The Bank had implemented the 7% interest rate to all the
crop loan borrowers up to Rs.3.00 lakhs, as per the
Government of India instructions and claimed an amount
of Rs 31,14,13,859/- towards 2% interest subvention from
the GOI during the year 2015-16. As per the directives of
Government of India, we had passed on the benefit
relating to interest subvention incentive to the extent of Rs
4587.50 lacs to the prompt re-payers.
Conducting of GramaSabhas : GramaSabhas were
conducted using audio and video visuals to create
awareness about the Banking Services made available to
them. Village elders, SHGs, Government officials
particularly from IKP and agriculture departments have
participated.
Interest Subvention
Crop Loan Waiver Scheme in Telangana State
Our Bank has implemented Crop Loan Waiver Scheme
announced by the Government of Telangana. Under the
Scheme, all crop loans and crop loans against gold
ornaments outstanding as on 31.3.2014 have been
covered to the extent of Rs 1 Lakh (including interest up to
31.8.14) per farmer. In case the borrower took loan from
multiple bank branches, the outstanding loan amounts
are clubbed for the purpose of waiver.
Accordingly, we have submitted the data of all eligible
loans amounting to Rs 2401.42 Crores and Government
of Telangana released second phase 25% of the total
eligible amount for credit to respective accounts, with a
stipulation that the borrowers have to renew their loan
account every year regularly so as to get the remaining
instalments of eligible amount. We have renewed all
eligible crop loans by crediting the 25% of the waiver
amount.
Crop Loan Waiver Scheme in Andhra Pradesh State
Self Help Groups
Our Bank has implemented Crop Loan Waiver Scheme
announced by the Government of Andhra Pradesh.
Under the Scheme, all crop loans, crop loans against gold
ornaments and the crop loans converted to MTL, which
were outstanding as on 31.12.2013 including interest are
eligible for waiver. The maximum ceiling for waiver of the
loans was Rs 1.50 Lakhs. Entire family is taken as a unit
and loans taken from multiple Bank branches are clubbed
for arriving at the maximum waiver.
Accordingly, we have submitted the data of all eligible
loans amounting to Rs 649.54 crores and Government of
Andhra Pradesh released second phase 20% of the total
eligible amount for credit to respective accounts, with a
stipulation that the borrowers have to renew their loan
account every year regularly so as to get the remaining
instalments of eligible amount. We have renewed all
eligible crop loans by crediting the 20% of the waiver
amount.
The Bank has disbursed Rs2773.82 Crore to 164382
Groups during the year as against Rs 2112.87 disbursed
to 139829 SHGs during the previous year. The total loans
outstanding under SHG segment has risen to Rs 3984.69
Crore constituting 37.59% of total advances as against
previous FY's level of Rs3403.31 Crores, constituting 38%
of total advances. Lending to SHGs grew by Rs581.38
Crore (@ 17.08%).
Total No. of SHGs financed reached 184440 as on
31.03.2016 as against 176281 of last year .20
15-1
6
1762
81
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we are with you! Annual Report 2015-16
Share of SHG portfolio in the total credit portfolio has risen
to 37.59% as against previous year's share of 37.54%.
Keeping in view the importance given by the GOI, RBI and
NABARD to SHG Lending, we have raised our exposure
limit of SHG lending portfolio to 40% of the total advances
and individual Group's maximum loan exposure to Rs
7.50 Lakhs.
As per the directions of Government of India and
NABARD, we have implemented Cash Credit System for
SHG loans with effect from January 2012.
The Bank has highest number of Self Help Groups
linked to Bank and loan amount outstanding, among
all RRBs in the country.
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2011
-12
2012
-13
2010
-11
0
500
1000
1500
2000
2500
3000
3500
4000
216
332 60
6 905 11
64 1472
1665
2016
Amt o/sAmt o/s
2013
-14
2513
2015
-16
3403
(Rs. In Crores)
2014
-15
3985
According to the guidelines of Cash Credit system, we
have started conversion of all SHG Term Loans
in to Cash Credit system from January
2012 itself and now almost all the Standard SHG Term
loans were converted as Cash Credit Loans. Further, we
have implemented sanction of SHG fresh loans (including
renewals) under Cash Credit System only.
Accordingly, we have arranged for fixing limits for a period
of 5 years basing on their present corpus and proposed
thrift. The loan documents will be obtained for the limit of
terminal year duly preparing the appraisal for 5 years and
year-wise limits will be fixed basing on present corpus and
proposed thrift . The limit will be fixed as 8 times of corpus
(1:8) for the current year and for the subsequent years, the
(only
Standard Assets)
limit will be 1:8 of present corpus PLUS expected thrift.
NABARD (vide their Letter No. NB.MCID/847/
Promotional Grant Dormant SHG (Policy)/2014-15 dated
04.12.2014) has announced an incentive scheme for
tracking and revival of dormant SHGs (Operative period
of the scheme is up to 31st March 2016). Under the
Scheme, NABARD would provide grant assistance for
revival and credit linkage of dormant SHGs at the rate of
Rs.3,000/- per SHG revived. Revival of dormant SHGs
which are having outstanding loan account with the banks
which is NPA for 6 months or more only is covered under
the grant assistance Scheme. We hope to revive
maximum number of dormant SHGs with this grant
Incentives for tracking and revival of dormant SHGs
Shri VVV Satyanarayana, CGM, TSRO, NABARD, Hyderabad visited our Fort Warangal Branch on 24.12.2015. He interacted with SHG women members during a loan disbursement
programme and handed over a Cheque for Rs 65 Lakhs to the SHGs. Seen in the picture from left to right are (1) Shri V. Prakash Babu, BM, Fort Warangal, (2) Shri V.S. Gupta, NABARD
Nominee Director on our Board, (3) Shri VVV Satyanarayana, CGM, NABARD (4) Shri V. Narasi Reddy, Chairman (5) Shri A.K. Chatterjee, AGM, NABARD (6) Shri RK Pandey, Asst.
Manager, NABARD (7) Shri T.V. Krishna Reddy, General Manager-II, (8) Shri D. Viswa Prasad, RM, Warangal and (9) Shri T. Chander, Senior Manager (Adv), Warangal RO.
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we are with you! Annual Report 2015-16
assistance in the year 2016-17.
State Government has been implementing “Vaddileni
Runalu” scheme i.e. reimbursement of interest for prompt
payers of Self Help Groups. The Bank would provide
particulars of transactions in SHG accounts relating to all
the branches to the SERP and basing on that, the SERP,
Hyderabad, arrives at the list of SHG accounts eligible for
VLR scheme and accordingly release the interest amount
which is credited to the respective SHG accounts directly.
As per the directions of Government of India, SHG Cash
Credit loans are also to be treated as normal Cash Credit
Loans for the purpose of classification of asset etc. But, as
per the guidelines of VLR scheme of GOAP, the SHGs have
to repay a minimum of 3% drawing power every month to
become eligible for reimbursement of interest. We have,
therefore, insisted the SHGs for repayment of 3% of
drawing power towards EMI, though it is sufficient if they
pay only the interest and other charges if any, every
month.
Our Bank has implemented NRLM Scheme as per the
guidelines issued by NABARD vide their letter No
249/MCID-LS/2013-14 dated 26.11.2013.
The government restructured Swarnajayanthi Grama
Swarozgar Yojana - SGSY (which was in existence since FY
2010-11) into National Rural Livelihoods Mission (NRLM)
to provide greater focus and momentum for poverty
reduction. The Mission aims at creating efficient and
effective institutional platforms of the rural poor enabling
them to increase household income through sustainable
livelihood enhancements and improved access to
financial services.
Under the Scheme, all Women SHGs promoted by NRLM
or other Central or State Government Line Departments or
NABARD or any NGOs, which are linked with our Bank
are eligible to avail the benefits of the Scheme. As per the
Scheme, GOI identified 150 backward districts all over the
country under Category-I, of which we have five districts in
our notified area namely Warangal, Khammam,
Srikakulam, Vizianagaram and Visakhapatnam.
All such Women SHGs in the five districts have been
extended credit at 7% rate of interest upto Rs 3 Lakhs and
Government would subvent to the extent of difference
between 7% and actual rate of interest subject to a
SHGs - Vaddileni Runalu
National Rural Livelihood Mission (NRLM) -
Aajeevika – Interest Subvention Scheme
maximum of 5.5%. Apart from this, prompt paying SHGs
will be extended an additional 3% subvention. SERP
(Society for Elimination of Rural Poverty) would credit the
remaining 4% interest for prompt re-payers.
We have claimed an interest subvention of Rs 7316.55
lakhs and 3% interest subvention of Rs 3464.73 Lakhs
during the year 2015-16 under NRLM.
We have three districts among the Category-II districts
(other than the above 150 districts) under NRLM namely
Nalgonda, Mahabubnagar and Medak. Funding for this
subvention will be provided by the SRLM (State Rural
Livelihood Mission).
SRLM and SERP will provide each 7% interest as
subvention for prompt re-payers through e-transfer to the
SHGs accounts under the Scheme for Category-II districts.
Overnment of India restructured Swarna Jayanti Shahari
Rozgar Yojana (SJSRY) as National Urban Livelihood
Mission (NULM). The SEP (Self Employment programme)
component of NULM focus on providing financial
assistance through a provision of interest subsidy on loans
to support establishment of Individual and Group
Enterprises and SHGs of urban poor. Under the Scheme,
(a) Interest subsidy, over and above 7% of ROI is available
on a Bank loan of Rs 2 Lakh to individual enterprises and
Rs 10 Lakh for Group Enterprises. The difference between
7% p.a. and the prevailing ROI will be provided to Banks
under NULM; (b) SHGs in urban areas can avail Bank
loan at 7% ROI. The difference between 7% p.a. and the
prevailing ROI will be provided to Banks under NULM.
Further an additional 3% interest subvention will be
provided to all women SHGs for prompt repayment as per
repayment schedule by GOI. Apart from this, as per State
Government of Andhra Pradesh, the balance portion of
interest will also be released under VLR Scheme as per the
eligibility.
In terms of RBI Circular No: FIDD.CO. Plan.BC.No.
14/04.09.01/2015-16 dated December 3, 2015, 75
per cent of outstanding advances should be towards
Priority Sector, which constitutes loans extended to (a)
Agriculture (Farm credit , Agriculture infrastructure,
Ancillary activities ) (b) Micro, Small and Medium
Enterprises (Manufacturing and Service Sector, KVI and
OD to PMJDY) (c) Education (d) Housing (e) Social
Infrastructure (f) Renewable Energy (g) Weaker Sections
National Urban Livelihood Mission (NULM)
Priority Sector Lending
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and (h) Others (SHG/JLG, distressed persons, Loans to
State Sponsored Organisations for Scheduled Castes/
Scheduled Tribes).
RRBs will have a target of 75 per cent of their outstanding
advances for priority sector lending and sub-sector targets
as indicated in table below.
Categories Targets
Total Priority Sector 75% of total outstanding
Agriculture 18% of total outstanding
Small and Marginal Farmers 8% of total outstanding
Micro Enterprises 7.5% of total outstanding
Weaker Sections 15% of total outstanding
The Bank priority sector lending constitutes 86.69 % of
total advances. In absolute terms, total priority sector
lending stood at Rs 9191.21 Crore as on 31.03.2016 as
against Rs 7738.54 Crore as on 31.03.2015. There is a
growth of Rs 1452.67 Crore @ 18.77%. The Weaker
Sections Loans stood at Rs 8144.27 Crore, which forms
76.82 % of total lending
(Rupees in Crore)
1. Weaker Sections
2. Women borrowers
3. Minorities
4. SCs/STs
2013-14 2014-15 2015-16
No. of O/s No. of O/s No. of O/sA/cs A/cs A/cs
805835 5526.80 823030 6616.45 844428 8144.27
402917 2763.40 445768 3082.31 468947 3847.03
46047 315.82 46923 362.62 47861 444.64
195702 1342.22 211153 1541.15 217487 2226.37
Inter Bank Participation Certificates
Government Sponsored Schemes
In accordance with the RBI guidelines, this year, the Bank
had participated in IBPC with State Bank of India for
Rs.648.00 crores and issued IBPC for an amount of
Rs.1283.00 crores. This amounts to selling our Bank's
Priority sector advances of Rs. 1283.00 crores to SBI and
purchasing non-priority sector advances of Rs. 648.00
crores from SBI.
The Bank has participated in Govt Sponsored Schemes
and as on 31.3.2016, the total finance extended under
various Schemes is as under.
(Rs in Lakhs)
(Rs in Lakhs)
Scheme Outstanding D 1.4.14 to 31.3.16
No. ofUnits Units
isbursement
Amt. No. of Amt.
from as on 31.3.16
RYS 1663 1833.73 1202 1006.18
Rajiv Gruhakalpa 915 128.33 0 0
SCAP 28571 8331.88 1066 856.92
BCAP 20989 5441.26 8808 4832.33
STAP 24334 6338.50 773 541.25
Minorities 4719 1824.41 593 411.83
VAMBAY/Indiramma 1983 768.81 0 0
Palapragathi 756 361.63 338 753.35
Pasukranthi 7475 3124.45 0 0
Others 4983 7429.29 1283 2239.39
Total 96388 35582.29 14063 10641.25
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we are with you! Annual Report 2015-16
Scheme Target Achievement
No. of Amt. No. of Units Units Amt.
SGSY 248 773.18 219 685.15
RYS 1481 1241.16 1202 1006.18
SCAP 1414 1158.22 1066 856.92
BCAP 9897 5429.25 8808 4832.33
STAP 849 586.85 773 541.25
Minorities 756 513.50 593 411.83
Weavers 1373 109.80 824 114.86
DTG 88 45.55 81 42.23
KVIC 539 1233.15 338 753.35
Pasukranthi / PPK 9 101.00 04 51.55
PMEGP 380 378.10 130 193.00
Sericulture 45 50.15 33 39.38
MEPMA 1156 2432.00 959 2140.40
PHC 383 296.33 288 228.92
Others 1623 2835.51 1283 2239.39
Solar water pump System 60 300.00 14 75.60
Total 20301 17483.75 1661514212.34
Achievement % 82% 81%
Participation in State Credit Plans
The Bank's participation in State Credit Plans is as under: (Rs in Crore)
2013-14 2014-15 2015-16
Target Achievement Target Achievement Target Achievement
1. Crop Loans
2. Total Agr & allied activities
3. NFS
4. OPS
5. Total Priority Sector
% of achievement
2734.06 1429.16 2223.74 2759.62 2800.00 3888.24
792.85 9.95 100.00 60.42 200.00 164.36
279.38 308.21 108.25 90.74 120.00 211.67
1113.36 1742.77 1764.22 2070.13 1922.00 3249.82
4919.65 3490.09 4196.21 4980.91 5042.00 7514.09
71 118.70 149.03%
Retail Lending
Establishment of RASMECCC (Retail Assets Small, Medium Enterprises Centralised Credit Cell). As part of diversification of credit portfolio, we have established RASMECCC in Visakhapatnam during the year to exclusively focus on lending to
retail and SME segment. Retail segment has increased by Rs 343.95 Crore over previous year, of which Housing has accounted for Rs 140 Crore. Total outstanding increased to Rs
2119.57 crore from Rs 1775.62 crore at 19.37%.
(Rs in Crore)
O/s March' 2014 O/s March' 2015 O/s March' 2016
S.No Segments No of A/Cs Amount No of A/Cs Amount No of A/Cs Amount
1 Housing Loans
2 Mortgage Loans
3 Education Loans
4 Demand Loans
5
6 Personal Loans
7 Personal Gold Loans
Total
5851 339.77 6291 411.26 7012 551.21
2470 54.52 2171 53.53 2217 79.62
4189 73.60 4106 76.48 3760 84.45
25977 170.75 25054 188.46 22970 210.02
NFS - Term Loan 43542 137.20 43067 124.67 70571 252.33
17703 197.11 18476 229.55 16304 283.49
154305 795.25 145942 691.67 142352 658.45
254037 1768.20 245107 1775.62 265186 2119.57
Our Bank's RASMECCC (Retail Assets, Small, and Medium Enterprises Centralised Credit Cell), Visakhapatnam was inaugurated by Shri R.N. Dash, Regional Director, RBI, Hyderabad on 23.9.2015
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we are with you! Annual Report 2015-16
CSIS Scheme
Government of India has introduced CCIS Scheme
(Central Scheme for Interest Subsidy) for providing relief to
students who were sanctioned / disbursed from
01.04.2009. Education loans availed by the students
from economically weaker sections whose annual gross
family income is up to Rs 4.50 Lakhs, are eligible under the
scheme. Our bank has been claiming Interest subsidies
under this scheme for the eligible students since 2009-10
to 2014-15 on the CSIS portal of Canara Bank (Nodal
Agency) every year. All the claims for all years has been
settled to our bank and partially settled for FY-2014-15.
We have claimed for the FY-2014-15 during claim period
2015-16 an amount of Rs 2,09,89,550/- in respect of
463 education loan accounts and received Rs
51,87,860/- from the Government of India. The balance
of Rs.1,58,01,690/- yet to be released to our Bank from
GoI.
Jawaharlal Nehru National Solar Mission
The Jawaharlal Nehru National Solar Mission aims at
addressing one of the most severe problems of the country
today i.e., energy conservation. The Bank has taken the
initiative of financing the solar lighting systems,
supporting the national cause. Total financing under
JNNSM stood at 5429 a/cs with amount outstanding
Rs.11.70 crore as on 31.03.2016.
Central Registry of Securitisation Asset Reconstruction and
Security Interest of India (CERSAI)
Our Bank had registered with CERSAI in terms of RBI
guidelines and complied with the instructions. Equitable
mortgages in respect of all our loans, which are covered
under Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act) as on 31.03.2016 have been registered
with CERSAI.
Poly House unit financed by our Sadasivapet Branch in Enkepally. Sri VVV Satyanarayana, CGM, NABARD TSRO inaugurating cucumber unit of POLY HOUSE while our Chairman inaugurated Capsicum unit on 25.3.2016. Sri TV Krishna Reddy, GM II, Sri Y Haragopal, AGM, NABARD Shri M. Vijay Sekhar, borrower are seen in the picture.
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we are with you! Annual Report 2015-16
The details of the accounts covered under the Scheme is as under
Year
2014-15 1608 867.39
2015-16 4388 2569.24
No.of A/cs Amount in crores
Credit Information Companies
Our Bank has been a member of CIBIL (Credit Information
Bureau (India) Limited). CIBIL is the first Credit
Information Company licensed by the RBI and governed
by the Credit Information Companies (Regulation) Act of
2005. CIBIL collects and maintains records of individuals'
and non-individuals' (commercial entities) payments
pertaining to loans and credit cards from Banks and other
lenders on a monthly basis. Using this information a
Credit Information Report (CIR) and Credit Score is
developed, enabling lenders to evaluate and approve
loan applications.
Reserve Bank of India vide its letter No. DBR No.
CID.BC.60/20.16.056/2014-15 dated 15.01.2015 has
advised us that all Credit Institutions have a mandate to
become members of all CICs. Accordingly we have
become members of the other CICs viz., Equifax Credit
Information Services Private Limited, Experian Credit
Information Company of India Private Limited and CRIF
High Mark Credit Information Services Private Limited
which were granted Certificate of Registration by RBI.
The Non-Performing Assets have decreased by Rs. 47.04 stCrores from Rs. 299.03 Crores as on 31 March 2015 to
stRs.251.99 Crores as on 31 March 2016. Gross NPAs as
a percentage to total advances has come down from
3.30% as on 31.3.2015 to 2.38% as on 31.3.2016. Net
NPAs (as a %age to Net advances) has come down to
1.40% from 2.48%. In absolute terms, Net NPAs was
reduced from Rs 222.43 Crore to Rs 147.89 Crore.
The NPAs have come down in all segments except ATL
which is on account of slippage of some agricultural term
loans by Rs.7.10 Crores. This is due to nonpayment of
installment amounts on account of severe drought
conditions for the past two/three years.
In the case of SHGs, the NPAs have come down by Rs
15.60 Crore from Rs 54.47 Cr to Rs 38.87 Crore. This is
due to regular monitoring throughout the year as such
NPAs under SHGs were contained to less than 1%. We
have been trying to utilize the Grama Deepikas in
monitoring SHGs.
NPAs in Housing, Education and mortgage loans have
also come down by Rs 2.50 Cr, Rs 2.40 and Rs 1.99 Crore
respectively. This is due to regular monitoring for recovery
and enforcing SARFAESI Act, suit filing etc.
Notices under SARFAESI Act were issued immediately after
the account becoming NPA. This was monitored by Head
Office at monthly intervals. Our actions in this regard
have yielded good results. We have taken demonstrative
actions particularly under SARFAESI. One desk officer
each has been posted to all Regions exclusively for the
purpose of monitoring NPAs who will be responsible for
initiating action under SARFAESI, Suit Filed, vehicle seizure
etc., and also closure of suit filed cases, AUCA recovery
etc. Focus was given for recovery of Recalled debts/ Suit
filed accounts. Meetings with Advocates were conducted
in regions for expediting disposal of suits.
Asset Quality – Management of Non Performing
Assets
SARFAESI Act and Suit filing
With this, the details of the security interest created in
favour of our bank is available on a public domain for
search by citizens / other banks / FIs as a result of which
the potential fraud / multiple financing against the same
property can be prevented.
The objective of the Scheme is to make bank credit
available to the first generation entrepreneurs without the
hassles of collaterals / third party guarantees to realise
their dream of setting up a unit of their own Micro and
Small Enterprise (MSE). The Credit Guarantee Scheme
(CGS) seeks to reassure the lender that, in the event of a
MSE unit, which availed collateral free credit facilities, fails
to discharge its liabilities to the lender, the Guarantee Trust
would make good the loss incurred by the lender.
ISB Sector loans excluding retail trade advances and
including Small Road and Transport loans are eligible for
guarantee cover of CGTMSE up to a limit of Rs.10.00
lakhs, as per the directions of Reserve Bank of India
Credit Guarantee Fund Trust For Micro & Small
Enterprises (CGTMSE)
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Lokadalat
· Lokadalat inter-alia, is one of the modes of Alternative
Dispute Resolution, of late, gaining popularity as the
award of the Lokadalat shall be deemed to be a decree
of Civil Court. The significant feature of the Lokadalat
is that legal experts holding Lokadalat bench guide the
parties in arriving at a compromise or settlement in a
friendly and harmonious atmosphere.
· The Lokadalats shall have jurisdiction to determine
and to arrive at a compromise or settlement between
the parties to a dispute in respect of any case pending
before any court or any matter which is falling within
the jurisdiction of any court and any matter not brought
before such court pre-litigation.
· Every award of Lokadalat shall be final and deemed to
be a decree of Civil Court binding on all the parties to
the dispute. Such civil court having jurisdiction shall
execute the order as if it were a decree made by that
court.
· No appeal shall lie to any court against the award of
the Lokadalat not even under Article 226 of the
Constitution because it is a judgement by consent.
· In order to have uniformity, we have advised the
percentage of remission to be allowed while referring
the cases to Lokadalat Accordingly our branches have
participated exceedingly well and many branches
have participated in Lokadalats. During the year 992
cases for an amount of Rs.6.02 Crores were referred to
Lokadalats of which 689 cases were settled for an
amount of Rs.4.69 Crores. Of which an amount of
Rs.3.16 Crores was recovered during the year 2015-16.
OTS and Compromise
Special OTS Scheme has been announced for NPAs in
ATL, AATL and ISB Sector for the year 2015-16 in addition
to Compromise Settlement wherever required
During the year 625 accounts have been settled under
OTS and recovered amount to the tune of 7.65 Crores
1415 Accounts have been recovered under compromise
during the year with an aggregate amount of Rs. 11.15
Crores
The following strategies were adopted to reduce / contain
the NPAs:
1. One desk officer each has been posted to all regions
exclusively for the purpose of monitoring NPAs who
will be responsible for initiating action under
SARFAESI, Suit Filed, vehicle seizure etc., and also
closure of suit filed cases, AUCA recovery etc.
2. All the Chief Managers at Head Office (HODs) have
been allocated one Region each to monitor NPA
position. They camped at those regions continuously
and visited branches, meeting NPA borrowers.
3. More than Rs.20.00 Lakhs outstanding NPA accounts
are being monitored by Chairman personally.
4. Top 100 NPA branches were monitored personally by
Chairman, 3 General Managers for reduction of
NPA.
5. Chronic NPA branches have been allotted to officials
who are working in Head Office to monitor and
reduce the NPAs.
6. NPAs between Rs.6.00 Lakhs to Rs.20.00 Lakhs in the
allotted regions were monitored by General
Managers.
SARFAESI (Rs.in lakhs)
Suit filed Cases
Demand Notice issued Possession notice issued Possession Taken Auctioned Regularised
A/Cs Amt A/Cs Amt A/Cs A/Cs Amts A/Cs
332 2078.87 178 1135.387 28 14 219.80 136
Suit filed
Permitted A/C closed Suit filed Decreed EP filed filing Suit
No. of Recovery after
A/Cs A/Cs A/Cs Amt A/Cs Amt A/Cs Amt Amt
2456 169 2287 4646.20 1086 1917 286 419.18 383.60
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(Rs in Crores)Assets Classification
Assets 2013-14 2014-15 2015-16
O/s % O/s % O/s %
Standard
Sub Standard
Bad & Doubtful
Loss
Total NPAs
Total Advances
7545.61 95.57 8766.58 96.70 10349.77 97.62
159.53 2.02 165.09 1.82 77.60 0.73
189.23 2.40 133.25 1.47 173.63 1.64
1.05 0.01 0.68 0.01 0.76 0.01
349.81 4.43 299.03 3.30 251.99 2.38
7895.42 100.00 9065.61 100.00 10601.76 100
Depositor Education and Awareness Fund Scheme (DEAF) 2014
In terms of RBI Circular No: RBI/2013-14/DBOD. No: DEAF Cell BC.114/30.01.002/2013-14 dated 27.5.2014, our
Bank has implemented Depositor Education and Awareness Fund Scheme (DEAF) 2014.
Accordingly, we have remitted an amount of Rs.18,75,231/- during the year 2015-16 to Reserve Bank of India under DEAF
the Scheme.
Internal Control System – Inspection & Audit
The Risk Focused Internal Audit Report System, as suggested by State Bank of India, has been implemented in the Bank from
July 2009 and with effect from 1.9.2011, the Bank has raised the benchmark for the Inspection ratings, to tighten the
criteria to qualify for better rating:
7. Review mechanism has been put in place. Regular
review meetings are being conducted for Manager
(Advances) and Regional Managers.
8. Wide publicity was given with regard to advantages
on renewal of crop loans viz., enhanced scales of
finance, crop insurance facility, interest subvention
incentive from GOI and Vaddi Leni Runalu other
government sponsored schemes by way of arranging
meetings, displaying wall posters, Banners etc.
9. Top management conducted audio conferences at
frequent intervals with Regional Managers, Manager
(Adv.), Desk Officers (NPAM) for reviewing the
reduction of NPAs.
10. Account Tracking Centre (ATC) - The officials posted at
ATC continuously called borrowers under IRAC 1, 2, 4
and above for up-gradation of accounts.
11. Five to six clusters in each region have been farmed
with officials having good track record for capacity
building and reduction of NPAs.
12. Conducted auction for Gold ornament pertaining to
Personal Gold Loans which became overdue, at
common date at quarterly intervals.
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we are with you! Annual Report 2015-16
Non-Performing Assets
As on31.03.2016
As on 31.03.2015
a NPA at Beginning 349.82 299.03
b Additions during the year 850.60 340.00
c Recovery of NPA
(Upgradation) 707.53 187.98
d Recovery of NPA (other) 193.63 198.86
e Write Offs 0.23 0.20
f NPA at the End 299.03 251.99
g Increase in cash Recovery as percent of opening GNPA 55.35 66.50
(Rs in Crores)
Rating Out of 477 Branches audited
during 2014-15 % during 2015-16 %
Out of 474 Branches audited
Excellent
Good 196
Satisfactory
Not Satisfactorily Run
279 59 326 69
41 148 31
2 - 0 -
0 0 -
477 100 474 100
· 85 Branches have upgraded from 'Good' to 'Excellent';
· 1 Branch has upgraded from 'Satisfactory' to 'Good';
· 1 Branch has upgraded from 'Satisfactory' to 'Excellent';
· 218 Branches have retained 'Excellent' rating;
· 125 Branches have retained 'Good' rating;
· Totally 20 Branches have downgraded to a lower grade.
· 24 New branches audited.
· No “Satisfactory” and “Not satisfactory” Branches as on
31.03.2016
All 461 Audit Reports which have fallen due for closure
during the year, have been duly dealt with and closed.
During the year, we have also audited 10 Regional Offices
and Ratings have been assigned to ROs to infuse
competitive environment among ROs to secure excellence
in their operations. Audit was carried out in Accounts
Department, Staff Learning Centre and Stationary Cell at
Head Office.
The reports submitted by the Auditors have been dealt with
by taking corrective measures, wherever necessary. The
Department has carried out its operations with fair and
without prejudice which helped in strengthening the
systems and procedures.
Apart from this, the following audits have also been
carried out to enhance the efficiency levels:
The schedule of Snap Audits have been advised to ROs on monthly basis to depute Officers from Region to other Region's Branches to carry out the Snap
Snap Audit –
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we are with you! Annual Report 2015-16
Branches with 'Excellent' and 'Good' ratings are audited within 18 months from the previous audit date while the Branches
with 'Satisfactorily Run' and 'Not Satisfactorily Run' rated branches are audited within a year.
During the year 474 branches have fallen due for Audit and all 474 branches have been audited. Rating acquired by 474
branches is as under:
Rating Range of Marks now revised Previous range of Marks
Excellent
Good
Satisfactory
Not Satisfactorily Run
>=850 >=750
>700 and <=850 >600 and <=750
>600 and <=700 >500 and <=600
<600 <500
Sl. No. Particulars Position as on
31-3-11 31-3-12 31-3-13 31-3-14 31-3-15 31-3-16
01 Excellent
02 Good
03 Satisfactory
04 Unsatisfactory
05 New Branches
06 Total
310 311 247 320 395 484
196 206 301 310 307 244
21 26 26 03 02 0
- - - - 0 0
12 31 64 71 24 23
539 574 638 704 728 751
Online inauguration of 23 new Branches and launching of e-KYC by Shri Hardayal Prasad, Chief General Manager, State Bank of India, Local Head Office, Hyderabad on 31.3.2016.
Audit to have effective audit of the Branches. During the year 963 Snap Audits have been conducted on Branches.
604 branches have been subjected to Income Audit during the year 2015-16 and income leakage identified and plugged to the extent of Rs 2.36 Crore.
During the year top 25 branches under Gold Loan Segment have been audited in all aspects to ascertain quality of assets and documentation apart from adherence to the systems and procedure as per extant instructions.
As part of internal control system in our Bank, Concurrent Audit is introduced from the financial year 2012-13 as per the policy guidelines issued by NABARD.
Keeping in view the staff availability, the Concurrent Audit is being conducted at 36 branches with the help of three Auditors. In due course, the said Audit will be extended to cover at least 50% of the Credit and other exposures of the Bank, in compliance with the guidelines issued by NABARD.
The Scope of Concurrent Audit is designed to cover (a) handling of cash (b) safe custody of securities (c) exercise of discretionary powers (d) sundry and suspense accounts (e) clearing differences (f) off balance sheet items etc.
The Audit Committee, constituted with one SBI-nominee-director as Chairman and nominee directors of Govt. of India, RBI and NABARD as members has met 4 times during the year and reviewed the Financial Statements, Quarterly Profit & Loss, Balance Sheet etc., of the Bank, audit function, quality of the audit system and transparency and accuracy that the audit system has carried.
Income Audit –
Special Audit of Gold Loan segment:
Concurrent Audit
Audit Committee of the Board
Management Audit
NABARD Inspection under Section 35(6) of the Banking Regulation Act 1949
Branch Expansion
Our Sponsor Bank (State Bank of India) has conducted Management Audit of the Bank during the year, under section 24 A of Regional Rural Banks Act 1976 covering the period from 01.04.2013 to 31.3.2015. The Management Audit Report was duly complied with and compliance report submitted to our Sponsor Bank, State Bank of India, within the stipulated time.
National Bank for Agriculture and Rural Development (NABARD) under Section 35(6) of the Banking Regulation Act 1949 has also conducted Vth Statutory Inspection of our Bank with reference to the financial position as on 31.03.2015.
All the points raised in the NABARD Inspection Report have been duly complied with.
The Bank has opened new Branches at 23 new locations on 31.3.2016 taking the total number of branches to 751 as on 31.3.2016.
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Composition of Branch network as on 31.3.2016
Metro & Urban
64
8%
Semi Urban
156
21%
Rural
531
71%
Financial Inclusion:
Access to financial services through alternative delivery
channels particularly Business Correspondents (Bank
Mitras) has been a priority area for the Bank. Significant
efforts were made to strengthen the Business
Correspondents in terms of (a) increasing outreach (b)
technology upgradation (c) introduction and stabilization
of the reporting and monitoring system (d) capacity
building (e) building trust on BC model banking among
public to formalize their activities in the rural areas and
more importantly (f) increasing Bank Mitra transactions so
as to enhance the commission for Bank Mitras.
1880 Bank Mitras are operating in 4444 villages which do
not have a formal banking outlet of any Bank. Out of
4444, 825 villages are with population of 2000 and
above and remaining 3619 villages with a population less
than 2000.
As at the end of FY 2015-16, 44,98,246 Basic Savings
Bank Deposit Accounts were opened, of which 29,04,461
accounts were opened by Bank Mitras and 15,93,785
accounts through Brick and mortar branches, with an
aggregate balance of Rs 258.27 Crore. All the accounts
are hosted in CBS. Bank Mitras have also mobilized
7,02,738 micro insurance / social security schemes from
the villages.
Various products/transactions viz., Savings, Remittance,
Recurring Deposits, Insurance and Self Help Groups have
been rolled out through Business Correspondent Agents
(BCAs) / Bank Mitras to provide access to Banking and
Financial Services to the people living in the unbanked
villages.
The focus on Bank Mitras during the year has reflected in
the following statistics:
· No. of transactions carried out by Bank Mitras during
the year went up by 66%. Total number of transactions
during the year was 3686180 as against 2210180
during previous year.
· Total amount involved in the transactions has also
gone up by 44% i.e., from previous FY's Rs 277 Crore
to Rs 398 Crore during the year.
· Zero balance accounts has come down from 74.60%
during previous FY to 32.16% during the year.
FI operations
Pradhan Manthri Jan Dhan Yojana (PMJDY)
The entire Financial Inclusion (FI) operations at BCAs work
on the principle of Biometric verification of the
beneficiaries by using 2085 handheld devices /micro
ATMs and are online, hitting our CBS server instantly
through Third Party Integration, which facilitates updation
of transactions carried out by BCAs on real time basis, in
CBS Server, via TSPs' Servers.. All these devices have the
features stipulated by UIDAI. For more transparent Bio-
Metric payment system, the Bank has started the process
of seeding Aadhaar numbers for both the old and new
accounts to initiate the Aadhaar Enabled Payment System
(AEPS). The Bank has already seeded 18,53,871
accounts with Aadhaar and placed in NPCI mapper.
After the launch of Pradhan Mantri Jan Dhan Yojana
(PMJDY) on 15.08.2014 by the Hon'ble Prime Minister of
India, the Bank has opened 2.87 Lakh Basic Savings Bank
Deposit Accounts taking to total to 14,84,414 PMJDY
Accounts and almost saturated all the Households in
4,444 villages through 1,880 Business Correspondent
Agents (BCAs) and 751 Brick and Mortar branches.
PMJDY is a wonderful and huge step which seeks to
improve the state of Financial Inclusion which has
already been on in India. The salient features of Accounts
opening under PMJDY, which makes the initiative more
forward looking vis-à-vis previous initiatives of GOI in
Financial Inclusion are providing Basic Savings Banking
Accounts with (a) overdraft facility (b) RuPay Debit card
and (c) Personal Accidental Insurance coverage of Rs 1
Lakh to the card holder.
We have issued 793627 RuPay Cards to PMJDY account
holders during the year and are targeting to issue RuPay
Cards to remaining PMJDY account holders loaded with
insurance coverage and overdraft facility during the year
2016-17. NABARD was kind enough to sanction a grant
assistance of Rs.2.00 crores, i.e., 80% of the total project
cost of Rs.2.50 crores for distribution of 10 lakh RuPay
Debit cards to those customers only whose accounts have
been opened or being opened under Financial Inclusion
Plan (FIP) submitted by the Bank and not for all the existing
account holders vide their letter No. NB.APRO.HYD/
5035/FID/FI-6(e)/2014-15 dated 21.10.2014.
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Preparation of Financial Inclusion Plan (FIP)-2016-
2019
Direct Benefit Transfer - Aadhar Payment Bridge
System (APBS):
Aadhar Enabled Payment System (AEPS):
As per the RBI instructions, the Bank has prepared the
Financial Inclusion Plan for three years i.e 2013-2016.
The plan targets for the next three years have been
disaggregated upto both the Regional Offices and Branch
level. Similar Plan will be prepared for the next three years
2016-19.
Ultra Small Branches (USBs) in villages having population
of 2000 and above
As per the GOI and RBI guidelines, the Bank has 493 USBs
as at the end of the current financial year in the FI villages
having population of 2000 and above. The Business
Correspondent Agents operate from these USBs. The
USBs are provided with minimum required space,
furniture, stationery / registers for enrollment and
transactions maintenance. We have also assigned a
common signage to these USBs and provided the boards
for the Bank identity.
These USBs will turn into full fledged brick and mortar
branches in the coming months depending on the volume
of business garnered. Bank has provided the requisite
infrastructure like Tables / Chairs / Almirahs. The Bank has
also assigned a common signage to these USBs and
provided the boards for the Bank identity.
Our Bank has been allotted all the 8 operating districts
viz., Srikakulam Vizianagaram, Visakhapatnam,
Khammam, Warangal, Nalgonda, Mahabubnagar and
Medak for DBT Rollout.
We have successfully on boarded to Aadhar Payment stBridge System (APBS), being the 1 RRB from the State
Bank group in the Country to implement Direct Benefit
Transfer (DBTL) for LPG subsidy. We have so far received
LPG subsidy benefit to the 2591376 customers amounting
to Rs.64.64 crores.
Aadhar Enabled Payment System was implemented by our
Bank during the year and transactions were enabled in the
month of October 2015. Now all the customers holding
Aadhar seeded accounts can avail banking services at
any CSP/Branch of the bank. (Out of 1880 CSPs). The
total number of successful transactions are 49,135 as on
31.03.2016.
In order to provide uninterrupted service to FI customer's
connectivity and other back end infrastructure continuous
monitoring mechanism is put in place. This has brought
improvement in FI transactions being carried out by CSP's.
The following is the FI transaction data for the financial
year 2015-16.
FI-CSP connectivity
Transaction type No of Transactions Amount (Rs)
Deposits 22,31,202 1,49,39,04,959
Withdrawals 1,454,978 1,48,69,39,312
FI (CSP)Transactions for the year 2015-16
Financial Literacy Centres (FLCs):
Financial Literacy Awareness Camps (FLACs)
With a prime objective to impart financial literacy in the
form of simple messages like 'why save with Banks, why
borrow from Banks, why repay the loans in time' the
Reserve Bank of India has advised all the Banks to set up
one Financial Literacy Center (FLC) each in the operating
districts of the Bank. The Bank has opened 8 such
Financial Literacy Centres in 8 districts viz., Srikakulam
Vizianagaram, Visakhapatnam, Khammam, Warangal,
Nalgonda, Mahabubnagar and Medak in tune with the
guidelines issued by the NABARD. The NABARD has
sanctioned Grant Assistance of Rs.32.00 lacs @Rs.4.00
lacs per FLC for operation of these 8 FLCs. The Bank has
posted retired Bank staff to look after the affairs of FLCs as
counselors. These FLCs are relocated at the district centres
and housed in the Regional Offices.
The Bank has taken several Financial Literacy initiatives by
organizing 1856 Financial Literacy Awareness Camps
(FLACs) /Grama Sabhas with Magic Shows, Street Plays
and Local Folks to educate the rural people to avail the
Banking and Financial Services at their door steps through
Business Correspondent Agents.
The publicity material in the form of pamphlets, brochures
and banners were distributed during the camps to spread
the message of financial awareness among the rural
people. The Bank has appointed Nodal Officers at each
Regional Office exclusively to monitor, supervise the FI
activity and increase business. The National Bank has
sanctioned Grant Assistance of Rs.44 lakhs lacs under FIF
for organizing these FLACs.
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we are with you! Annual Report 2015-16
FI Awareness Programme conducted in USB Ragolu, Srikakulam RO.
Project Director, DRDA, DDM NABARD, LDM have participated in the
programme. Srikakulam RM Shri GSN Reddy is seen in the picture.
Board of Directors being given a demo of Financial Inclusion operations
through Micro ATM in Araku Valley Branch on 8.8.15 during Bank Mitra
customers meeting. Seen in the picture from left are our Chairman Shri V.
Narasi Reddy, Shri V. Hanumantha Reddy, GOI non-official director, Shri C.L.
Naidu, GOI non-official director, Shri S. Chellapandi, RBI nominee director
and Shri KV Maruthi Rao, SBI nominee director.PMJJBY and PMSBY
APGVB is implementing Pradhan Mantri Jeevan Jyoti
Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha
Bima Yojana (PMSBY) at all our Branches. All our
Bank's account holders are welcome to enroll
themselves for the above two Social Security
Schemes. These two schemes will enhance the level
of insurance penetration in the country and would
serve the cause of extending social security cover at a
very affordable cost. Please see the attachments for
full details and approach our Bank's Branch where
you have account, for enrollment.
Handing over of PMJJBY benefit to the nominee (ST women) along with 2 children R/o Vallur village at Jadcherla Branch on 5-10-2015. P Raju, RM, J Venkatesh, Nodal Officer (FIC), B Ravikanth, BM are seen in the picture
Smt. Kavitha
Traditional folklore singing and advocating our Bank's Services and
products to the villagers in the form of Voggu Kathalu organized FLC,
Mahabubnagar.
Meeting with Bank Mitra and Villagers in Antikonda Village, Vizianagaram
RO, at a height of 5 KM from sea level. Addressing the gathering is Mr A.
Tatayya, Branch Manager, Seethampet Branch, Parvathipuram RO.
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Information Technology
RuPay Cards
NPCI Award
All 751 branches, Head Office and eleven Regional stOffices are on CBS Platform as at the end of 31 March
2016. 23 branches opened during the year 2015-16 have
commenced operations on CBS on the day one.
As at the end of 2015-16, total number of RuPay Kisan
Credit Cards issued reached to 229411 and RuPay ATM
Cards (both personalized and non personalized) reached
to 218026 apart from 793627 RuPay Cards to PMJDY
Account holders, taking the total cards to 1241064.
Our Bank has bagged Special Award in recognition and
appreciation of highest number of transactions in
National Financial Switch (NFS) ATM Network under the
category of RRBs. An eminent and independent panel of
jury constituted by NPCI has built the framework for
monitoring the evaluation process. RBI Dy Governor Mr R
Gandhi, who was the Chief Guest in the National
Payments Awards Function 2015, organized by NPCI on
22.12.15 in Mumbai, presented the Special Award to
APGVB for excellent performance in their product NFS
The NEFT & RTGS facility operational in
our bank since February 2013 has become immensely
popular and is a widely used facility by our customers and
other organisations. The following are the transactions
carried out in the financial year 2015-16.
RTGS & NEFT:
NEFT & RTGS Transactions in the year 2015-16
Type of Inward Outward
Transactions No of Transactions Amount (Rs) No of Transactions Amount (Rs)
NEFT 47,01,219 2667,45,81,638 2,87,918 1396,31,16,921
RTGS 7816 1137,85,76,400 7627 966,64,05,803
As explained above, we have been placing paramount
importance to introducing technology in all areas of
operations including Alternate Delivery Channels. No. of
transactions carried out through Alternate Delivery
Channels has increased to 19.3% from last year's share of
8.1%. Our motto is to increase the usage of Alternate
Delivery Channels in the years to come to become more
digital, which has been the constant endeavor of our
Sponsor Bank.
New Initiatives implemented during 2015-16
ATM: Two onsite ATMs were installed and enabled for
both acquirer and issuer transactions. On boarding as
acquirer for ATM transactions on NPCI platform was
completed. This enables any bank customer to avail ATM
facility at APGVB ATMs. The following are the transactions
carried out in the financial year 2015-16.
ATM transactions in the year 2015-16
IMPS: IMPS facility has been extended to our customers
on NPCI platform as Beneficiary Bank. Our customers can
receive remittances through IMPS mode to their accounts.
IMPS facility has been enabled in our bank on
22.01.2016. The following are the transactions carried
out in the financial year 2015-16.
IMPS transactions in the year 2015-16
NACH: Our customers have been extended ECS debit
clearing services as our bank has on boarded as NACH
sponsor bank on NPCI platform. The following is the
volume of transactions in the financial year 2015-16.
ABPS & ACH transactions in the year 2015-16
Type of Transactions Transactions
No.of Amount (Rs)
As Beneficiary 570 1,02,02,648Bank
Type of Transactions Transactions
No.of Amount (Rs)
ATM-ISSUER 2736866 536,53,15,500
ATM-ACQUIRER 10687 2,00,35,200
Type of Transactions Transactions
No.of Amount (Rs)
ACH-Cr 1136372 42,87,31,534
APBS 2591376 54,64,15,917
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Own ATM - Our Bank has installed first own ATM in PR Pally X Roads Branch (Sangareddy RO) on 12.1.2016. Chairman operating the ATM. Shri V Hanumantha Reddy, GOI Non-official director looks on.
IT Team celebrating IDRBT Award- Aiming for another Success
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Shri Hardayal Prasad CGM, SBI, LHO, Hyderabad Interacting with Bank Mitra sitting in Mobile ATM
Cheque Truncation System: Our bank is live on Cheque
Truncation system (CTS) of NPCI on the southern grid. Our
customers' cheques are cleared within 24 hours from the
time of presentation due to participation in CTS clearing.
The following are the transactions carried out in the
financial year 2015-16.
CTS Clearing transactions in the year 2015-16
Point of Sale Machines (POS): RuPay ATM Debit card
holders of our bank can use their debit cards at merchant
outlets as our bank has on boarded as issuer on NPCI
platform. POS transactions for our Rupay Debit cards were
enabled on 15.04.2015 and the following are the
transactions carried out in the financial year 2015-16
POS transactions in the year 2015-16
SBI cash @ POS facility: SBI POS machines installed at
197 branches to facilitate customers of SBI to avail cash
withdrawal facility in our branches. The following are the
transactions carried out in the financial year 2015-16
SBI cash @ POS transactions in the year 2015-16
e-KYC:
Biometric Authentication System – B@NCS24:
Our bank customers with Aadhar number issued
by UIDAI can avail of e-KYC facility at our branches. This
facility is extended by on boarding on UIDAI and NPCI
platforms. This saves the customer a lot of effort in
procuring copies of documents for identity and address
proofs.
To
strengthen and enhance security of CBS platform
B@NCS24, biometric authentication system for
B@NCS24 users has been introduced. This increases the
accountability of the B@NCS 24 users and safeguard the
bank's customers from frauds and misappropriations
perpetrated by insiders.
The following new initiatives are in advanced stages of
implementation.
Internet Banking.
Mobile Banking.
Leased line connectivity to branches to
facilitate higher bandwidth
q
q
q
Cross Selling
SBI Life Insurance
The Bank is a corporate agent of SBI Life Insurance
Corporation Limited, to meet the life insurance needs of
the Bank's customers, as part of Financial Inclusion apart
from earning non-interest income. The Bank stood No.1
in the country by mobilizing a New Business Premium
(NBP) of Rs.14.67 crores during the year 2015-16 and
earned a commission of Rs.2.00 cr. We have emerged as
No.1 in mobilizing highest premium amount SBI
sponsored RRBs during the year 2015-16.
The performance highlights are as under:
We have also achieved a business share of 21% of State
Bank Group RRBs in both the premium and business
commission for the year 2015-16.
We have commenced SBI General Insurance Business
during the year 2015-16 as a Corporate Agent and
mobilized a business premium of Rs 92.70 lakhs during
the year. Marketed two Insurance products viz., group
Health Insurance Scheme and Group Personal Accidental
Insurance Scheme apart from insurance to the Assets
financed by the Bank to the eligible and willing customers.
We have emerged as No.1 among all SBI sponsored RRBs
during the year 2015-16.
SBI General Insurance
Type of Transactions Transactions
No.of Amount (Rs)
1
Outward Clearing 55400 728,28,79,186
Inward Clearing 26156 621,49,59,846
Type of Transactions Transactions
No.of Amount (Rs)
As Beneficiary Bank 1,40,972 10,09,15,124
Type of Transactions Transactions
No.of Amount (Rs)
As Beneficiary Bank 99 37,400
Parameter Budget for2015-16
Achievement
New Business Premium 10.00 14.67
Business commission 1.00 2.00
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Security Measures – Installation of CCTVs and
Burglar Alarm Systems
Project Ambiance
Physical security systems that effectively protect the Bank
assets, customers, and employees assume paramount
importance, in the face of increasing incidence of
robberies, mischief. The Bank has provided CC Cameras
& Burglar Alarms to all 751 branches of the Bank.
Providing facelift and pleasant ambiance at Branches has
been one of the focused areas of the Bank as part of
enhancing customer service and satisfaction. The Bank
has spent Rs 1.79 Crore during the year 2015-16 and 70
Branches have been given for facelift.
Construction of own building
Customer Service & Complaints handling
Construction of own buildings at our own sites in
Khammam, Mahabubnagar, Nalgonda & Sangareddy
districts are in progress.
All Branches are conducting customer meets every quarter
and important customers are invited. Their views and
opinion were solicited in order to take corrective steps,
wherever necessary. Regional Managers concerned are
attending the customer meetings whenever feasible.
The Bank has put in place complaint-handling-policy to
redress the grievances of the customers and improve the
quality of customer service.
The following system of monitoring of complaints for their redressal and submission of compliance is in vogue:
Nature of complaint Officer in charge at charge atBranch RO
Officer in At Head Office level
General Complaints (other than vigilance Branch Regional Chief Manager (Board) under the nature) & complaints from / through the Manager Manager control of General Manager - IIIBanking Ombudsman
Complaints of vigilance nature Branch Regional Chief Manager (Vig.) under theManager Manager control of General Manager - I
Another milestone reached in the history of APGVB. Its Nalgonda Regional Office is going to have own building in due course. Foundation stone was laid by
the Nalgonda District Collector and Magistrate Shri Satyanarayana Reddy, IAS on 5.12.15 in the august presence of our Bank's Chairman Shri V. Narasi Reddy.
Our Bank has been in existence in Nalgonda district for the last 40 years (as Nagarjuna Grameena Bank till 2006 and as APGVB thereafter) and been an
integral part of credit delivery system particularly in rural areas and developed intimate and irrevocable banking relationship with the people of Nalgonda
district.
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Customer Complaints: Status as on 31.03.2016
SNo Particulars No.
1 No. of Complaints pending at the Beginning of the year 03
2 No. of Complaints received during the year 2015-16 49
3 Total Complaints 52
4 No. of Complaints Redressed / Disposed-off during the year 52
5 No. of Complaints pending at the end of the year Nill
For complaints received through Banking Ombudsman, General Manager-III is designated as “Principal Nodal Officer” of
our Bank at Head Office.
The position of complaints received through / from Banking Ombudsman during the year.
* Banking Ombudsman Compliant received on 21.03.2016. Reply sent on 31.03.2016 and was closed on 04.04.2016 by BO, RBI.
SNo Particulars No.
1 No. of Complaints pending at the Beginning of the year 02
2 No. of Complaints received during the year 2015-16. 39
3 Total Complaints 41
4 No. of Complaints Redressed / Disposed-off during the year 40
5 No. of Complaints pending at the end of the year 01*
Whistle Blowing Policy with an objective of providing an
avenue for raising concerns related to frauds, corruption
or any other misconduct is also in place. The Bank has
also installed a Toll Free Number to receive feedback from
the customers on the Bank's services.
The Bank implemented the Right to Information Act, 2005
in letter & spirit setting out the practical regime of right to
information for citizens to secure access to information
under the control of bank in order to promote
transparency and accountability in the working of bank's
various functionaries.
At the Branch level, the Branch Manager has been
designated as Central Assistant Public Information Officer
while the Regional Manager concerned is designated as
the Central Public Information Officer. At Head Office
level, the Law Officer is the Central Assistant Public
Information Officer and the Chief Manager (Audit &
Inspection) is the Central Public Information Officer. The
General Manager – III has been designated as Appellate
Authority in the Bank, under RTI Act.
During the year 2015-16, the Bank has received 171
Right to Information Act
applications and 19 appeals and disposed off all
applications and appeals within the stipulated time frame.
As a significant step towards BPR with the approval and
guidance from our Sponsor Bank (State Bank of India), the
Bank has established a Liabilities Centralized Processing
Centre (LCPC) on 28th Oct, 2013, which seeks to handle /
update and maintain the Liabilities accounts (Savings
Bank and Current Accounts) opened across all Branches,
at a single centralized place, leveraged by Core Banking
Solutions.
A) Verification of and strict compliance to KYC norms
including obtention of valid documents;
B) Feeding of all key parameters / data pertaining to SB
and Current Account Holders into the Database
including scanning and uploading of Photographs
and specimen signatures;
Business Process Reengineering (BPR)- Liabilities
Central Processing Centre - LCPC
The important aspects that are envisaged to be
achieved through LCPC are
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we are with you! Annual Report 2015-16
Officers S-IV 43
Officers S-III 145
Officers S-II 512
Officers S-I 1073
Office Assistants 1069
Office Attendants 109
Total 2951
C) Storage of physical documents (opening forms
including KYC documents) at a centralized place
called Document Archival Centre (DAC) for future
use.
D) Issuing personalized cheque books to customers
through cheque printing agency through postal
department
Presently, 203 Branches have been linked including all
Scale IV branches, all branches of Ashoknagar Region,
and all Scale III branches of 6 Regions Viz. Sangareddy,
Mahbubnagar, Nalgonda, Khammam, Bhadrachalam
and Warangal with LCPC for Savings bank accounts and
Current accounts. The systems and procedures of
processing has been redesigned and stabilized during the
year and productivity has been increased. So far, we have
processed 155250 account opening forms and
completed KYC compliance.
The process of centralized printing and issue of
personalized cheque books is under process and expected
to be implemented during next year.
As the end of FY 2015-16, the staff strength (excluding
those who exited the Bank service in the month of March
2016 on account of retirements / resignations) and its
composition is as under:
Human Resource Management
During the year, 147 staff members have retired from the
Bank's Service. 152 staff members have resigned, three
staff members were removed from service. Five Staff
members expired during the year.
Since 2009-10, the Bank has been recruiting staff through
IBPS, as per manpower assessment and requirement stundertaken as on 31 March of every year in terms of
Thorat Committee recommendations, presently as per
Mitra committee recommendations approved by GOI.
Last six years have witnessed mass retirements of those
staff members who had joined erstwhile RRBs in late
1970s and in 1980s.
Accordingly, based on the business volumes as on
31.3.2016, the Bank has taken up recruitment exercise for
augmentation of staff in various grades, including lateral
recruitment of Scale-II and Scale-III Officers in General
Banking and with specialization in Law, IT, Marketing,
Treasury, CA etc.
Recruitments
As at the end of FY 2015-16, there are 107 Scale-II
Officers and 20 Scale-III Officers directly recruited from
the market laterally.
109,4%
1069,36%1773,60%
Officers O.Assistants O.Attendants
Grade No. of Candidates recruited during the year
1 Office Assts 166
3 Officers S-I 255
4 Officer S-II 22
5 Officer S-III 5
448
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Conducted Quiz on Bank's Circular instructions for all Staff members on 31.3.2016 on the occasion of Bank Day. Warangal Region emerged
the Winner and Khammam RO the Runner Up.
On the occasion of 10th Anniversary on 31.3.2016, our Bank has conducted quiz for our Stafff members on Circular instructions and Banking
for all stafff members. Three toppers from each RO, have come to Head Office (FIC, Hyderabad) participated in Semi Finals and Finals. Four
teams from Khammam, Vizianagaram, Warangal and Parvathipuram have reached Finals and at the end of Finals, Warangal team emerged
the Winner and Khammam Team the Runner Up. Chairman Shri V Narasi Reddy Vangala , General Manager-I Shri Y.N. Sukumar, General
Manager-II Shri T.V. Krishna Reddy and General Manager-III Shri S. Prakash Kumar were present during the programme and presented the
mementos to the Winners, Runners up and participants.
Chairman introducing Shri P Nageswara Rao, Branch
Manger, Tholapi Branch, Srikakulam RO, who qualified as
Chairman’s Club Member, to the gathering in
Vizianagaram.
Chairman and GMs made a practice to have pre-dinner talk with trainees at SLC in a very informal way, interacting with them about the Bank, their career etc.
Chairman had such meetings with Officers S-I promoted recently.
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we are with you! Annual Report 2015-16
The Bank's in house Learning Centre has been working
continuously to train and re-train the new recruits
imparting skills and supply inputs in all areas to equip
them to handle the day to day functions well.
All the recruitments have been completed through the
Common Written Test including interviews conducted by
IBPS.
Keeping in view the Bank's policy of giving promotions
promptly to staff, we have taken up promotion exercise in
terms of manpower assessment as on 31.3.2015 and
promoted as many as 79 people in various cadres to next
higher grade. Written Test for promotion was arranged
through IBPS online from this FY onwards.
Promotions
Promotions
The Bank has fulfilled the statutory requirement of giving
pre-promotion training to all SC/ST candidates, eligible
for promotion, prior to written test. This has enabled the
SC/ST candidates to prepare themselves better, to take on
the written test.
The Bank had laid down a Training Policy which envisages
Training - Staff Learning Centre
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2011
-12
2012
-13
2010
-11
2013
-14
2015
-16
500
0
1000
1500
2000
2500
3000
541
818
1414
1241
142
Newly Recruited
Old staff
2014
-15
3500
1707
2277
2262
2215
2160
2060
1953
1813
1659
1502
1429
1244
283
1 Officer S-I 27
2 Officer S-II 24
3 Officer S-III 21
4 Officer S-IV 7
5. Office Asst. 0
79
Promoted to No. of Posts
training to all staff members, atleast once in three years.
During the year, APGVBSLC has conducted 45 Training
programmes and provided training to 1087 staff
members. The participants include all cadres of staff.
The Bank has also deputed 62 staff members, essentially
in the higher cadres, to external training institutions like
BIRD (Lucknow), RBI (CAB, Pune), BIRD (Mangalore), State
Bank Learning Centres on important subjects like AML,
ALM, KYC, RTI Act, Treasury Management, Business
Development etc.
Mediclaim policy
The Bank has renewed the Group Medi Claim Floater
Policy with New India Assurance Company Limited, after
following CVC guidelines. The Floater Policy covered the
Hospitalisation expenses upto Rs 2 Lakh for the Staff and
their spouse. The Scheme, apart from facilitating hassle
free admission into the hospital immediately and payment
of cash, makes the settlement of hospitalization expenses
become much easier, saving administrative time
considerably.
Gratuity and Leave Encashment Fund
The Bank has taken care of provisional requirements in
respect of Gratuity. The total corpus as on 31.3.2016 is to
the tune of Rs 150,97,41,837 (Rupees One Fifty Crore
Ninety Seven Lakhs Forty One Thousand Eight Hundred
and Thirty Seven Only) towards Gratuity and Rs
81,12,60,502 (Rupees Eighty One Crore Twelve Lakhs
Sixty Thousand Five Hundred and Two Only) towards
Leave Encashment.
Industrial Relations
The Management and Officers Association and
Employees Union have worked in tandem for the welfare
of the staff members and business development, sorting
out amicable solutions for routine issues that cropped up
during the year. Cordial and amiable working
atmosphere has prevailed during the year.
Welfare of SC/ST and OBC Employees
The Bank has maintained cordial relations with the SC/ST
Welfare Association and OBC Welfare Association and
complied with statutory requirements in all aspects of
recruitments, promotions etc. The Bank has held regular
meetings with the representatives of Welfare Associations
Staff welfare measures
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International Women's Day was celebrated on a grand thscale on 8 March 2016 – Smt G Neelima, Sr Civil Judge cum
Secretary, Dist Legal Services Authority, Warangal was
invited as Chief Guest on the occasion and felicitated.
Sports and games for women employees and winners were
presented with mementoes. Upon our request, Dr K
Swaroopa Rani, an eminent gynecologist addressed our
lady staff on Stress Management and balancing the career
and profession on the occasion of IWD.
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Annual Report 2015-16
and Liaision Officers to redress their grievances.
The Bank has taken all steps to keep up the morale and
motivation of the employees.
Settlement of Terminal Benefits
The Bank has made a policy that all terminal benefits are
settled on the date of retirement of staff members. The
process begins two months in advance of retirement to
ensure that all formalities are completed to make
payment on the date of retirement.
Payment of Ex-gratia
The Bank has implemented the GOI instructions,
contained in their notification No: F.20/5/2003—RRB
dated 9.6.2006, on payment of ex-gratia in lieu of
appointment on compassionate grounds for the legal
heirs of the bereaved staff members and also to the staff
who are chronically sick and immobile on sick grounds.
The cadre-wise ceiling of ex-gratia and total amount paid
are as under:
Bifurcation of APGVB and amalgamation of five
districts with Deccan Grameena Bank (now
renamed as Telangana Grameena Bank)
I. Government of India (Department of Financial
Services, MoF) had issued two Notifications (a) No. thF.No.1/6/ 2012-RRB(AP) dated 20 October, 2014 and
th(b) No. 1/6/2012-RRB (Telangana) dated 20 October,
2014, re-organizing the area of operation of APGVB
and Telangana Grameena Bank.
Ii. Government of India vide its notification No: F.No:
15/15/2015 dated 16.7.2015, a Committee has been
const i tuted to discuss, f inal ise and submit
recommendations on re-organisation of APGVB and
Telangana Grameena Bank, with the support of SBI Caps.
The Committee has submitted their recommendations to
NABARD for onward submission to Government of India.
1 Officers Rs 8 Lakhs Rs 16,00,000
2 Clerical Staff Rs 7 Lakhs -
3 Sub-Staff Rs 6 Lakhs -
Total Rs
Grade Ceiling of Amount paid Ex-gratia during the year
16,00,000
Further communication from GOI is awaited
The Board of the Bank is constituted by
(a) Chairman of the Bank
(b) two non-official directors appointed by Government
of India
(c) one nominee director each from Reserve Bank of
India and NABARD
(D) two nominee directors from Sponsor Bank
(E) two nominee directors from Government of Andhra
Pradesh, with Chairman of the Bank as Chairman of
the Board.
Board Meeting Rules stipulate that the Board meets
minimum six times a year, at least once in a quarter.
Minimum quorum for the Board Meeting to transact
business is four directors and no meeting was adjourned
for want of quorum.
During the intervening period of two Board Meetings, as
and when warranted, the Board has transacted the
business by means of Circulation of 25 agenda notes
during the year, which were confirmed by the Board in the
following Meetings.
The Board has undergone the following changes in the
composition on account of transfer of officials
· Shri Y. Haragopal, Asst. General Manager,
NABARD, RO, Hyderabad , nominee director on the
Bank's Board has been replaced by Shri V.S.Gupta ,
Deputy General Manager, NABARD, TSRO,
Hyderabad during the year.
· Shri L. Premachandra Reddy,IAS principle secretary,
Finance (IF) Govt. of A.P State Government
nominee director on the Bank's Board has been
replaced by his successor Smt. K. Sunitha, IAS,
Secretary, Finance (IF) , Govt. of A.P during the year.
The Bank places on record the invaluable services
rendered by the Directors Shri Y.Haragopal, Asst.
General Manager, NABARD, RO, Hyderabad and Shri
L.Premachendrareddy,IAS, principle secretary, Finance
(IF) Govt. of A.P who left the Board during the year:
Board
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Acknowledgements
The Board of Directors of the Bank would like to express
their sincere gratitude for the continued trust and
patronage received from the customers who have stood
with the Bank all through. The feedback received from
customers by way of suggestions / complaints on the
service element have helped the Bank to take corrective
measures and new initiatives to improve our efficiency
levels.
The Board takes immense pleasure in expressing their
gratitude for the guidance and cooperation received from
the Sponsor Bank, Government of India, Government of
Andhra Pradesh, Reserve Bank of India, NABARD, other
Financial Institutions and Banks for their unflinching and
valuable support to the Bank from time to time.
Further, the Board would like to conveys its gratitude to
Shri Hardayal Prasad, Chief General Manager, State Bank
of India, Hyderabad LHO; Shri Giridhara Kini, General
Manager (Network-I) Shri Aswin Mehta General Manager
(Network-II); Shri Hare Krishna Jana, General Manager
(Network-III) Shri S. Ganesan, DGM (RRBs & LLB), State
Bank of India, Corporate Centre, Mumbai, Shri P. Venkata
Rao, AGM (RRBs), State Bank of India, Hyderabad LHO.
They shared their knowledge, their ideas, and numerous
tips all of which were extremely useful in taking this Bank
forward. The Bank is indebted to these executives for their
constant handholding.
We will be failing in our duty if we do not acknowledge the
help extended by NABARD and State Bank of India, Local
Head Office, Hyderabad in sparing their Officers to be
members of the Selection Committees constituted for
recruitments and promotions.
The Board conveys its gratitude to Shri R.N.Dash,
Regional Director, Reserve Bank of India, Hyderabad; Shri
N Kr i shna Mohan, Bank ing Ombudsman,
RBI,Hyderabad for their support.
The Board also acknowledges the great support and
affectionate guidance from Shri VVV.Sathyanarayana
and Harish Java, Chief General Managers, National
Bank for Agriculture and Rural Development, Hyderabad,
and their team of General Managers Shri P.N. Satya
Prasad and Shri Nageswar Rao
The Board also expresses sincere thanks to all the District
Collectors, Project Directors of DRDA, IKP, DWMA, SC/ST
BC Minorities and Housing Corporations of Srikakulam,
Viziangaram, Visakhapatnam, Khammam, Nalgonda,
Warangal, Mahabubnagar and Medak for their support
and encouragement.
Attendance of Directors at Board Meetings during the calendar year 2015
S. No. Name of the Director WEF No. of Meetings No. of Meetings
held attended
1 Shri V. Narasi Reddy 21.07.2014 6 6
2 Shri CL Naidu 28.06.2013 6 5
3 Shri V. Hanumantha Reddy 27.09.2013 6 6
4 Shri S. Chellapandi 22.07.2014 6 5
5 Shri V.S.Gupta 03.08.201566
Shri Y Hargopal 03.05.2013
6 Shri T.V. Reddy 28.07.2014 6 3
7 Shri KV Maruthi Rao 24.10.2014 6 3
8 Smt K.Sunitha,IAS 27.06.2015nil6
Shri L Prema Chandra Reddy, IAS 13.12.2013
9 Smt. V. Karuna, IAS 11.01.2015 6 nil
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The Board would like to gratefully acknowledge the
support rendered by our Technology Service Providers viz.,
M/s C-Edge Technologies, Mumbai, M/s Irix Technologies
and M/s National Payments Corporation of India.
Apart from our customers, the support received from the
Government Departments / Institutions was immense and
augmented our resources. The Board also wishes to thank
Andhra Pradesh Pollution Control Board, Hyderabad for
their patronage. We also place on record our sincere
thanks to AP Industrial Development Corporation, AP
Trading Promotion Corporation, AP Markfed and
Commissioner of Endowments, GOAP for their
remarkable patronage.
The Board extends its heartfelt gratitude to M/s Bhaskar
Rao & Co, the Central Statutory Auditors of the Bank and
other Statutory Branch Auditors for their cooperation in
For and on behalf of Board of Directors of
Andhra Pradesh Grameena Vikas Bank
(V. Narasi Reddy)
Chairman
completing the Audit of the Bank's Financial Year 2015-16
in time.
The Board also expresses its gratitude to all Public
Relations Officers, Press and media for their cooperation
in giving wide publicity for the Bank. The Board also
thanks the Officers Association, Employees Union and
SC/ST/OBC Welfare Associations for their constructive
role played in overall development of the Bank.
Words are not adequate to recall the excellent
performance, sense of involvement, ownership and
dedicated services rendered by each and every staff
member in achieving the sustained business growth and
profit. Amazing work by the individuals is always valued
and kept on record.
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Balance SheetProfit & Loss A/c
SchedulesNotes to Accounts
Performance in Figures
we are with you! Annual Report 2015-16
55
56
INDEPENDENT AUDITORS' REPORT
M Bhaskara Rao & Co.Chartered AccountantsTo
The Shareholders
Andhra Pradesh Grameena Vikas Bank
Report on the Financial Statements
1. We have audited the accompanying financial statements of Andhra Pradesh Grameena Vikas Bank which comprise the
Balance Sheet as at March 31, 2016, and Profit and Loss Account and the cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are
the returns of twenty branches audited by us and 708 branches audited by branch auditors. Panel of the branch auditors were
approved by National Bank for Agriculture and Rural Development (NABARD) and intimated to the Bank. The branches audited
by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank
by the NABARD. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 23 branches
which have not been subjected to audit. These unaudited branches account for less than 1% per cent of advances,1% per ce n t
of deposits, 1% per cent of interest income and 1% per cent of interest expenses.
Management’s Responsibility for the Financial Statements
2. The Bank’s Board of Directors is responsible for preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance and cash flows of Bank in accordance with the applicable
provisions of Regional Rural Bank Act, 1976, Banking Regulations Act, 1949, applicable guidelines of Reserve Bank of India
(RBI) / NABARD, accounting principles generally accepted in India, including the Accounting Standards issued by Institute of
Chartered Accountants of India (ICAI). This responsibility also includes maintenance of adequate accounting records for Safe
guarding the assets of the Bank and for preventing and detecting the fraud and other irregularities; selection and application
of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Bank’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
Auditor’s Responsibility
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we are with you! Annual Report 2015-16
For M Bhaskara Rao & Co.Chartered Accountants
Firm Registration Number: 000 459 s
V K MuralidharMembership Number: 201570
Hyderabad, May 20, 2016
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us:
i. The Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary
particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March
2016 in conformity with accounting principles generally accepted in India;
ii. The Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with
accounting principles generally accepted in India, for the year covered by the account: and
iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Emphasis of Matters:
7 We draw attention to the following Notes to the Financial Statements:
a. Schedule 18 (II) (9) regarding disputes with income tax departments over the tax demands raised by the income tax
department. For the reasons stated there in the impact, if any, on the financial statements will be recognised in the
year of settlement of such disputes
b. Schdule 18 (10) Regarding actions initiated by classification of advances
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third
Schedule to the Banking Regulations Act, 1949.
9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and subject to the limitations of disclosure
required therein, we report that:
a. We have obtained all the information and explanations which to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found them to be satisfactory.
b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.
c. The returns received from the offices and Branches of the bank have been found adequate for the purposes of the
audit.
d. The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of
account and the Returns.
e. In our opinion, proper books of account as required by Law have been kept by the Bank, so far as appears from our
examination of those books.
f. The Reports on the financial statements of the Branches audited by the Branch Auditors have been dealt with in
preparing our Report in the manner considered necessary by us.
10. In our opinion, the Balance Sheet, Profit and Loss Account and cash Flow Statement comply with the applicable
accounting standards.
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Place: Ramachandrapuram, Medak DistDate: 20th May 2016
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
(Rs in '000s)
For Andhra Pradesh Grameena Vikas Bank
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)
Partner General Manager-III Chairman
Membership No.201570
Firm Registration No.000459s
( C. L. Naidu) (V. Hanumantha Reddy) (S.Chellapandi)
Director Director Director
(V.S. Gupta) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director
(Smt. K. Sunitha, IAS) (Smt.V.Karuna, IAS)Director Director
stBalance Sheet As At 31 March 2016
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
Particulars Sch. As at 31.03.2016 As at 31.03.2015
TOTAL 16173,33,88 13598,73,83
CAPITAL AND LIABILITIES
Capital 1-A 94,08,50 5,00,00
Share Capital Deposit 1-B 0 89,08,50
Reserves and Surplus 2 1303,73,25 1080,26,18
Deposits 3 10202,11,53 8280,00,15
Borrowings 4 3733,79,81 3207,99,62
Other Liabilities and Provisions 5 839,60,79 936,39,38
ASSETS
Cash and Balances with RBI 6 514,84,18 430,69,78
Balances with Banks and Money at Call
& Short Notice 7 2850,65,79 2799,66,74
Investments 8 2358,46,79 2071,68,82
Advances 9 9862,43,63 7898,85,05
Fixed Assets 10 55,61,20 50,67,38
Other Assets 11 531,32,29 347,16,06
TOTAL 16173,33,88 13598,73,83
Contingent Liabilities 12 35,99,36 17,25,28
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st Profit & Loss for the year ended 31 March 2016 (Rs in '000)
Particulars Sch. 2015-16 2014-15
3. TOTAL 1646,16,91 1343,95,52
1. Interest Earned 13 1484,69,50 1243,86,13
a. Interest/Discount on Advances/bills 1104,72,89 993,97,72
b. Interest on Investments 171,42,99 143,68,56
c. Interest on Balances with RBI and Other
Inter Bank Funds NIL NIL
d. Interest on STDRS with Banks 208,53,62 106,19,85
2. Other Income 14 161,47,41 100,09,39
a. Commission, Exchange and Brokerage 125,63,65 90,55,71
b. Miscellaneous Income 35,83,76 9,53,68
4. Interest Expended 15 968,51,82 782,32,62
5. Operating Expenses(a+b) 16 336,76,55 223,31,13
a. Employees Costs 229,17,86 151,44,81
b. Other Operating Expenses 107,58,69 71,86,32
6. Total Expenditure excluding Provisions and
Contingencies (4+5) 1305,28,37 1005,63,75
7. Operating Profit before Provisions and
Contingencies (3-6) 340,88,54 338,31,77
8. Provisions(other than Tax) and Contingencies 34,70 (44,78,38)
9. Exceptional Items NIL NIL
10. Profit/Loss from Ordinary Activities
before Tax (7+8-9) 341,23,24 293,53,39
11. Tax Expense
a. Provision for Taxation (107,61,57) (90,00,00)
b. Deferred Tax (1,32,77) (1,92,67)
c. Earlier Years Adjustments (8,81,83) NIL
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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Particulars Sch. 2015-16 2014-15
(Rs in '000s)
Place: Ramachandrapuram, Medak DistDate: 20th May 2016
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
For Andhra Pradesh Grameena Vikas Bank
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)
Partner General Manager-III Chairman
Membership No.201570
Firm Registration No.000459s
( C. L. Naidu) (V. Hanumantha Reddy) (S.Chellapandi)
Director Director Director
(V.S. Gupta) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director
(Smt. K. Sunitha, IAS) (Smt.V.Karuna, IAS)Director Director
2. Net Profit/Loss for the period from Ordinary
Activities after Tax 223,47,07 201,60,72
13. Extraordinary Items (net of tax expenses) NIL NIL
14. Net Profit/Loss for the Period (12-13) 223,47,07 201,60,72
IV. APPROPRIATIONS
Net Profit/Loss for the period 223,47,07 201,60,72
Brought forward Profit 848,54,88 687,26,30
Transfer to the Statutory Reserves 44,69,41 40,32,14
Profit(+)/Loss(-) Carried Over to Balance Sheet 1027,32,54 848,54,88
Summary of Significant Accounting Policies 17
Disclosures and Notes to Accounts 18
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SCHEDULE – 1 A - CAPITAL
st Schedules forming part of Balance Sheet As At 31 March 2016
SCHEDULE – 1 B - SHARE CAPITAL DEPOSIT
(Rs in '000)
(Rs in '000)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAl 94,08,50 5,00,00
Authorised Capital 2000,00,00 5,00,00
(200,00,00,000 Equity Shares of Rs.10/-each)
Issued Capital 94,08,50 5,00,00
(9,40,85,049 Equity Shares of Rs.10/-each)
Subscribed Capital 94,08,50 5,00,00
(9,40,85,049 Equity Shares of Rs.10/-each)
Called up Capital 94,08,50 5,00,00
(9,40,85,049 Equity Shares of Rs.10/-each)
Less: Calls Un Paid NIL NIL
Add: Forfeited Shares NIL Nil
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 89,08,50
Share Capital Deposit from
a. Govt. of India 44,54,25
b. State Bank of India 31,17,98
c. Govt. of Andhra Pradesh 13,36,27
NIL
NIL
NIL
NIL
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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SCHEDULE – 2 - RESERVES AND SURPLUS(Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 262,08,02 217,38,61
TOTAL 1,20 1,20
TOTAL NIL NIL
TOTAL 14,31,49 14,31,49
TOTAL 1027,32,54 848,54,88
TOTAL 1303,73,25 1080,26,18
I. Statutory Reserve
i. Opening Balance 217,38,61 177,06,47
ii. Additions / Deletions during the Year 44,69,41 40,32,14
II. Capital Reserve
i. Opening Balance 1,20 1,20
ii. Additions / Deletions during the Year NIL NIL
III. Share Premium
i. Opening Balance NIL NIL
ii. Additions / Deletions during the Year NIL NIL
IV. Revenue and Other Reserves
i. Opening Balance 14,31,49 14,31,49
ii. Additions / Deletions during the Year NIL NIL
V. Balance In Profit & Loss Account
i. Opening Balance 848,54,88 687,26,30
ii. Additions / Deletions during the Year 178,77,66 161,28,58
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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SCHEDULE – 3 - DEPOSITS
SCHEDULE – 4 - BORROWINGS
(Rs in '000s)
(Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 10202,11,53 8280,00,15
TOTAL 10202,11,53 8280,00,15
A. I. Demand Deposits
i) From Banks NIL NIL
ii) From Others 59,34,38 52,43,61
II. Savings Bank Deposits 3674,42,36 2924,32,58
III. Term Deposits
i) From Banks NIL NIL
ii) From Others 6468,34,79 5303,23,96
B. i) Deposits of Branches In India 10202,11,53 8280,00,15
ii) Deposits of Branches Out Side India NIL NIL
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 3733,79,81 3207,99,62
I. Borrowings In India
I) Reserve Bank of India NIL NIL
Ii) Other Banks (SBI) 1004,60,92 34,94,64
Iii) Other Institutions and Agencies
a) NABARD 2648,52,93 3051,74,24
b) NHB 80,65,96 121,30,74
II. Borrowings Out Side India NIL NIL
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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SCHEDULE – 6 - CASH AND BALANCE WITH RESERVE BANK OF INDIA (Rs in '000s)
SCHEDULE – 5 - OTHER LIABILITIES AND PROVISIONS
(Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 514,84,18 430,69,78
I. Cash in Hand
(Including Foreign Currency Notes) 84,37,56 75,20,15
II. Balances With Reserve Bank of India
i) In Current Accounts 430,46,62 355,49,63
ii) In Other Accounts NIL NIL
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 839,60,79 936,39,38
I. Bills Payable/Bankers Cheque 78,47,78 93,31,86
II. Inter Office Adjustments (Net) 7,33,14 31,92,69
III. Interest accrued 522,73,89 444,70,20
IV Provisions
a) Provision on Standard Assets 29,26,11 24,81,55
b) Provision on Rural Advances 10,67,36 45,67,36
c) Provision on Frauds 1,44,52 1,58,28
d) Audit Fee Provision 76,00 70,00
e) Income Tax Provision 107,61,57 90,00,00
f) Wage Revision Arrears NIL 5,39,00
g) Bonus Provision 66,00 NIL
V Interest payable on Borrowings 52,05,10 80,61,10
VI. TDS on Bank Term Deposits 11,24,87 14,75,45
VII. Other Liabilities 17,34,45 102,91,89
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SCHEDULE – 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE(Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 2850,65,79 2799,66,74
TOTAL NIL NIL
TOTAL 2850,65,79 2799,66,74
I. In India
i. Balances with Banks
a) In Current Accounts 13,04,79 22,99,74
b) In Other Deposit Accounts 2837,61,00 2776,67,00
ii. Money at Call and Short Notice
a) With Banks NIL NIL
b) With Other Institutions NIL NIL
II. Outside India
a) In Current Accounts NIL NIL
b) In Other Deposit Accounts NIL NIL
c) Money at Call and Short Notice NIL NIL
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SCHEDULE – 8 - INVESTMENTS(Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 2358,46,79 2071,68,82
TOTAL NIL NIL
TOTAL 2358,46,79 2071,68,82
I. Investments in India
i) Government Securities 2288,64,27 1795,61,29
ii) Other Approved Securities NIL NIL
iii) Shares NIL NIL
iv) Debentures and Bonds NIL NIL
v) Subsidiaries and/or Joint Ventures NIL NIL
vi) Investment in Equity shares of National 24,99 NIL
Payment Corporation of India (Long Term)
vii) Others 69,57,53 276,07,53
II. Investments outside India
i) Government Securities
(Including Local Authorities) NIL NIL
ii) Subsidiaries and/or Joint Ventures NIL NIL
iii) Other Investments (to be Specified) NIL NIL
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SCHEDULE – 9 - ADVANCES (Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL (A) 9862,43,63 7898,85,05
TOTAL (B) 9862,43,63 7898,85,05
TOTAL (C.I) 9862,43,63 7898,85,05
TOTAL (C.II) NIL NIL
TOTAL (C.I+C.II) 9862,43,63 7898,85,05
A. 1. Bills Purchased and Discounted NIL NIL
2. Cash Credits, Over Drafts and Loans
Repayable on Demand 7512,98,01 5108,61,39
3. Term Loans 2349,45,62 2790,23,66
B. 1. Secured by Tangible Assets 9830,09,30 7874,01,90
2. Covered by Bank/Govt. Guarantees NIL NIL
3. Unsecured 32,34,33 24,83,15
C.I. Advances in India
1. Priority Sector 8498,44,96 5677,26,67
2. Public Sector NIL NIL
3. Banks NIL NIL
4. Others 1363,98,67 2221,58,38
C.II. Advances outside India
1. Due from Banks NIL NIL
2. Due from Others NIL NIL
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SCHEDULE – 10 - FIXED ASSETS (Rs in '000)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 9,57 9,57
TOTAL 14,00 14,00
TOTAL 51,51,60 48,13,78
TOTAL 3,86,03 2,30,03
TOTAL (I+II+III+IV) 55,61,20 50,67,38
I. Land
At Cost as on 31st March 2015 of the Preceding Year 9,57 9,57
Additions/Deletions during the Year NIL NIL
II. Buildings
stAt cost as on 31 March 2015 of the preceding year 14,00 NIL
Additions/Deletions during the Year NIL 14,00
Deductions during the year NIL NIL
III .Other Fixed Assets
(including Furniture & Fixtures)stAt cost as on 31 March 2015 of the Preceding Year 90,37,32 79,84,04
Additions / Deletions during the Year 12,79,54 10,59,10
Deductions during the Year 16,47 5,82
Depreciation to date 51,48,79 42,23,54
IV. Capital Work in progress
st At Cost as on 31 March 2015 of the Preceding Year 2,30,03 2,15,37
Additions / Deletions during the Year 1,56,00 14,66
Deductions during the Year NIL NIL
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SCHEDULE – 11 - OTHER ASSETS
(Rs in '000s)
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 531,32,29 347,16,06
1. Inter Office Adjustments (Net) NIL NIL
2. Interest Accrued 139,86,12 102,17,41
3. Advance Tax paid 89,00,00 77,00,00
4. Tax Deducted at Source during earlier Years 5,36,92 5,23,04
5. Stationery 29,73 42,55
6. Telephone Deposit 3,97 3,97
7. Suspense 0 6,66
8. Subvention receivable from NABARD 262,12,22 106,95,65
9. Interest Incentive receivable from NABARD 0 2,32,49
10. Subvention receivable from GOI (NRLM) 0 3,14,75
11. Prepaid Expenses-Insurance 76,12 85,43
12. Income Tax paid under protest against
disputed demand 23,27,78 23,24,56
13. Others 10,59,43 25,69,55
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SCHEDULE – 13 - INTEREST EARNED
SCHEDULE – 12 - CONTINGENT LIABILITIES(Rs in '000s)
(Rs in '000s)
Particulars YE 2015-16 YE 2014-15
TOTAL 1484,69,50 1243,86,13
Interest/Discount on Advances/Bills 1104,72,89 993,97,72
Interest on Investments 171,42,99 143,68,56
Interest on Balances with RBI and other Inter Bank funds NIL NIL
Others (Interest on STDRs with Banks) 208,53,62 106,19,85
Particulars As at 31.03.2016 As at 31.03.2015
TOTAL 35,99,36 17,25,28
1. Claims against the Bank not acknowledged as debt 18,14,00 NIL
2. Liability for partly paid investments NIL NIL
3. Liability on account of outstanding forward
exchange contracts NIL NIL
4. Guarantees given on behalf of Constituents
a) In India 10,13,42 6,10,13
b) Outside India NIL NIL
5. Acceptances, Endorsements and Other Obligations NIL NIL
6. Other items for which the Bank is
contingently liable (DEAF Fund) 1,34,75 1,16,00
7. Other items for which Bank is contingently
liable (Unclaimed Bankers Cheques treated
as Income) 6,37,19 9,99,15
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SCHEDULE – 14 - OTHER INCOME
SCHEDULE – 15 - INTEREST EXPENDED
(Rs in '000s)
(Rs in '000s)
Interest on Deposits 694,60,94 578,77,30
Interest on Reserve Bank of India/ Inter Bank Borrowings 273,90,88 203,55,32
Others NIL NIL
Particulars YE 2015-16 YE 2014-15
TOTAL 968,51,82 782,32,62
Commission, Exchange and Brokerage 125,63,65 90,55,71
Profit on Sale of Investments 29,16,88 2,89,79
Profit on Revaluation of Investments NIL NIL
Profit on Sale of Lands, Buildings and Other Assets NIL NIL
Profit on Exchange Transactions NIL NIL
Income Earned by way of Dividend Etc., from Subsidiaries
/Companies and/or Joint Ventures in Abroad/in India NIL NIL
Miscellaneous Income 6,66,88 6,63,89
Particulars YE 2015-16 YE 2014-15
TOTAL 161,47,41 100,09,39
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SCHEDULE – 16 - OPERATING EXPENSES (Rs in '000s)
Particulars YE 2015-16 YE 2014-15
TOTAL 336,76,55 223,31,13
Salary Payments and Provisions to Employees 229,17,86 151,42,49
Rent, Taxes, Lighting and Fuel 15,52,81 13,63,36
Printing and Stationery 3,35,21 3,14,31
Advertisement and Publicity 6,30 13,04
Directors Fee, Allowances and Expenses 14 11
Depreciation on Bank's Property 9,25,25 3,80,24
Auditor's Fee and Expenses 70,39 65,44
Legal Charges 15,52 15,18
Telephones Charges 1,23,48 1,13,98
Repairs and Maintenance 23,92 26,28
Insurance 10,14,75 6,89,38
Travelling and Halting Expenses 5,19,38 6,02,95
Leave Fare Concession 18,57 24,41
Leave Encashment Fund 6,54,18 2,32
Medical Expenses 2,11,13 2,64,37
Gratuity Contribution 18,99,31 7,62
AMC for Software and Hardware 12,85,77 11,23,05
Books and Periodicals 83,40 82,72
Computerization 45,14 38,31
Vehicle and Fuel 2,94,16 3,13,30
Entertainment 77,85 82,04
Other Expenses (Sundries) 16,02,03 16,66,23
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SCHEDULE – 17 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation:
2. Use of estimates:
3. Revenue Recognition:
4. Investments:
The Bank's financial statements are prepared under the historical cost convention, on the accrual basis of
accounting ongoing concern basis, unless otherwise stated and conform in in all material aspects to Generally
Accepted Accounting Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms
/guidelines prescribed by the National Bank for Agriculture and Rural Development (NABARD) / Reserve Bank Of
India (RBI),Banking Regulation Act 1949, Regional Rural Bank Act, 1976 and amendments thereto and Accounting
Standards issued by the Institute of Chartered Accountants of India (ICAI), and practices prevalent in banking
industry in India.
The preparation of financial statements requires the management to make estimates and assumptions considered
in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial
statements and the reported income and expenses during the reporting period. Management believes that the
estimates used in the preparation of the financial statements are prudent and reasonable and are based upon
management's evaluation of the relevant facts and circumstances as of the date of financial statements. Future
results could differ from to these estimates and the differences between the actual results and the estimates are
recognised in the period in which the result are known / materialised.
a) Income and Expenditure are accounted on accrual basis, except otherwise stated.
b) Interest income is recognised in the Profit and Loss Account as it accrues except, income from Non
Performing Assets (NPAs), comprising of advances, and investments which is recognised upon realisation,
as per the prudential norms prescribed by the RBI or other regulatory authorities.
c) Profit / loss on sale of investments is recognised in the Profit and Loss Account.
d) Interest on Investments has been recognized on accrual basis.
e) Commission & Exchange and Locker rent have been recognized on realization basis.
f) Interest on overdue term deposits is accounted for on renewal.
g) In case of suit filed accounts, legal and other expenses incurred are charged to Profit and Loss Account and
at the time of recovery of such expenses is accounted as income.
The transactions in Government Securities are recorded on “Settlement Date”. Investments other than Government
Securities are recorded on “Trade Date”.
a) Investments are classified into three categories viz., Held to Maturity (HTM), Available for Sale (AFS) and
Held for Trading (HFT) as per RBI guidelines.
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l Investments that the Bank intends to hold till maturity are classified as Held to Maturity (HTM).
l Investments that are held principally for resale within 90days from the date of purchase are classified as
Held for Trading (HFT)
l Investments, which are not classified in the above two categories, are classified as Available for Sale (AFS).
An investment is classified as HTM / HFT / AFS at the time of its purchase and subsequent shifting
amongst categories is done in conformity with regulatory guidelines.
However, for disclosure in Balance Sheet these are classified as under - Government Securities, Other
Approved Securities and Others.
b) The Securities in each classification are valued in accordance with RBI guidelines as detailed hereunder:
l In determining the acquisition cost of an investment:
l Brokerage or Commission received on subscriptions is reduced from the cost.
l Broking period interest paid / received on debt instruments is treated as interest expense / income and is
excluded from cost or sale consideration.
l Cost is determined on the weighted average cost method for investments under AFS and HFT category and
FIFO basis (First in First out) for investments under HTM category
l Transfer of securities from HFT / AFS category to HTM category is carried out at the lower of acquisition
cost / book value / market value on the date of transfer. The depreciation, if any, on such transfer is fully
provided for. However, transfer of securities from HTM category to AFS category is carried out on at
acquisition price / book value. After transfer, these securities are immediately re-valued and resultant
depreciation, if any, is provided
l Investments under Held to Maturity category are carried at acquisition cost unless it is more than the face
value, in which case the premium is amortised over the period of remaining maturity on constant yield
basis. Such amortisation of premium is adjusted against income under the head “Interest on Investments”.
l Investments in equity shares of other companies are valued at historical cost. A provision is made for
diminution, other than temporary, for each investment individually.
l Investments under AFS and HFT category are individually re-valued at market price or fair value
determined as per regulatory guidelines. A Provision is made for diminution, other than temporary, for
each investment individually.
l Investments are classified as Performing and Non Peforming, based on the guidelines issued by the RBI.
Investments of domestic offices become non performing where:
l Interest or instalment (including maturity proceeds) is due and remains unpaid for more than 90 days.
l In the case of equity shares, in the event the investment in the shares of any company is valued at Rs. 1/- per
company on account of the non availability of the latest balance sheet, those equity shares will be
reckoned as NPI.
Loans and advances are classified as performing and non-performing, based on the guidelines issued by the
RBI. Loan assets become Non Performing Asset (NPA) where:
5. Loans or Advances and Provisions thereon:
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l In respect of agriculture advances:
i. For short duration crops, where the instalment of principal or interest remains overdue for two crop
seasons and
ii. For long duration crops, where the principal or interest remains overdue for one crop season.
l In respect of Non Agriculture advances:
i. In respect of term loans, interest and / or instalment of principal remains overdue for a period of more than
90 days.
ii. In respect of Overdraft or Cash Credit Advances, the account remains “out of order”, i.e. if the outstanding
balance exceeds the sanctioned limit or drawing power continuously for a period 90 days, or if there are no
credits continuously for 90 days as on the date of balance sheet, or if the credits are not adequate to cover
the interest due during the same period.
Provisions are made for NPAs as per the extant guidelines/directives prescribed by the RBI:
a) All advances have been classified under four categories i.e., Standard Assets, Sub-standard Assets,
Doubtful Assets and Loss Assets.
b) Provisions on Advances are made as under:
General Provision for Standard Assets at the following rates:Direct Advances to
Agriculture and SME sectors at 0.25%
Commercial Real Estate sector at 1%
All other advances not included in (1) & (2) above at 0.40%
A loan asset that has remained non performing for a period less than or equal to 12 months is a Sub
Standard Asset
General Provision of 15% on the total outstanding
Additional Provision of 10% for exposures which are unsecured ab-intio (i.e. where realisable value of
security is not more than 10% ab-initio).
I Standard Assets:
II Sub-Standard Assets:
III Doubtful Assets:
A loan asset that has remained in the substandard category for of 12 months is Doubtful Asset
IV Loss Assets:
A loan asset where Loss has been identified but the amount has not been fully written of is a Loss Asset.
100% Provision on outstanding Advances.
l Advances are net of specific loan loss provisions, unrealised interest, ECGC claims received
l For Restructured / Rescheduled assets, provisions are made in accordance with the extant guidelines
Secured Portion Up to One year 25%
One to three years 40%
More than three years 100%
Unsecured Portion 100%
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issued by the RBI.
l In the case of loan accounts classified as NPAs, an account may be reclassified as a performing asset if it
confirms to the guidelines prescribed by the regulators.
l Amounts recovered against debts written off in earlier years are recognised as revenue in the year of
recovery.
l In addition to the specific provision on NPAs, general provisions are also made for Standard Assets as per
extant RBI guidelines. This general provision is reflected in Schedule 5 of the Balance Sheet under the
head “Other Liabilities and Provisions – Other Provisions” and is not considered for arriving at the net
NPAs.
The bank has a policy for creation and utilisation of floating provisions for advances, investments and general
purpose. The quantum of floating provisions to be created is assessed at the end of each financial year.
l Fixed Assets are carried at historical cost less accumulated depreciation/amortisation.
l Cost includes cost of purchase and all expenditure directly attributable to or incur in connection with
acquiring the said asset before it is put to use. Subsequent expenditure incurred on the assets put to use
are capitalised only when it increases the future benefits from such assets or their functioning capability.
l Depreciation / amortisation is provided on straight line method as per the rates stated below.
6. Floating Provisions:
7. Fixed Assets, Depreciation and Amortisation:
8. Impairment of Assets:
9. Employee Benefits:
Fixed assets are reviewed for impairment whenever events or changes in circumstances warrant that the
carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of an asset to future Net Discounted Cash Flows expected to be
generated the asset. If such assets are considered to be impaired, the impairment to be recognised is
measured by the amount which the carrying amount of the asset exceeds the fair value of the asset.
a. Short Term Employee Benefits:
The undiscounted amount of short –term employee benefits, such as medical benefits etc., which are
expected to be paid for the services rendered by employees, are recognized during the period when the
employee renders the service.
Description of Fixed Asset Depreciation / amortization rates
Furniture & Fixtures other than Electrical Fittings and Fixtures 10%
Electrical Fittings with 3 years life 33.33%
Electrical Fittings with 5 years life 20%
Safe Deposit Lockers, Fire proof data safe 5%
Computer systems & ATMs 33.33%
Computer software which does not form an integral
part of computer hard ware and cost of software development 100%
Motor vehicles 10%
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b. Long Term Employee Benefits
i. Defined Benefit Plans:
For all the eligible employees, the Bank provides for Gratuity liability based on actuarial valuation
and contribution to SBI Life Insurance Company Limited on annual basis.
For all the employees who have completed five years of service, the Bank provides for
Leave Encashment liability based on actuarial valuation and contributes to SBI Life Insurance Company
Limited on annual basis.
ii. Defined Contribution Plans such as Provident Fund are recognized as an Expense and charged to the Profit
& Loss Account on accrual basis.
Income Tax expense is the aggregate amount of current tax and deferred tax. Current taxes expense and
deferred tax expense are determined in accordance with the provisions of the Income Tax Act, 1961 and as per
the Accounting standard 22 – Accounting for Taxes on Income respectively and tax laws prevailing in India.
Deferred tax adjustments comprise of changes in the deferred tax assets or liabilities during the period.
Deferred tax assets and liabilities are recognised by considering the impact of the timing differences between
taxable income and accounting income for the current year, and carry forward losses. Deferred tax assets and
liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the
Balance Sheet date. The impact of changes in Deferred Tax assets and liabilities is recognised in the Profit and
Loss Account. Deferred tax assets are recognised and reassessed at each reporting date, based upon
management's judgement as to whether their realisation is considered as reasonably / virtually certain.
In conformity with AS – 29 “Provisions, Contingent Liabilities and Contingent Assets”, issued by ICAI, the bank
recognises the provisions only when it has a present obligation as a result of a past event and would result in
probable outflow of resources embodying economic benefits will be required to settle the obligation, and
when a reliable estimate of the amount of the obligation can be made.
No provision is recognised for :
I. Any possible obligation that arises from past events and existence of which will be confirmed only by the
occurrence or non occurrence of one or more uncertain future events not wholly within the control of the
bank.
II. Any present obligation that arises from past events but is not recognised because
a. It is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation or
b. A reliable estimate of the amount of obligation cannot be made.
Such obligation is recorded as Contingent Liabilities. These are assessed at regular intervals and only that
part of the obligation for which an outflow of resources embodying economic benefits is probable, is
provided for, except in the extremely rare circumstances where no reliable estimate can be made.
III. Provision for reward points in relation to the debit card holders of the Bank is being provided for on
actuarial estimates.
IV. Contingent Assets are not recognised in the financial statements.
a. Gratuity:
b. Leave Encashment:
10. Income Tax Expense:
11. Contingent Liabilities & provisions:
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SCHEDULE – 18
DISCLOSURES & NOTES TO ACCOUNTS
I.Disclosures as per norms for RRBs
1. CAPITAL
2. INVESTMENTS
S.No Particulars Current year Previous year
1 Value of Investments
i) Gross value of Investments 23584679 20716882
ii) Provisions for Diminution 0 0
iii) Net value of Investments 23584679 20716882
2 Movement of provisions held towards
depreciation on investments
i) Opening Balance Nil Nil
ii) Add: Provisions made during the year Nil Nil
iii) Less: Write off / Write back of excess provisions
during the year Nil Nil
iv) Closing Balance Nil NIL
3. REPO TRANSACTIONS
Securities Sold under Repos Nil Nil Nil Nil
Securities purchased under Nil Nil Nil Nil
Reverse Repos
Minimum stoutstanding outstanding outstanding 31
during the during the during the March,
year year year 2016
Maximum Daily Average As on
Item
(Rs in '000s)
(Rs in '000s)
The Bank has invested a sum of Rs.24,99,200/- in National Payments Corporation of India (NPCI), a company
promoted by ten banks under the guidance of Indian Bank's Association.
Sl.No Particulars Current year (%) Previous year (%)
I) CRAR(%) 13.48 13.45
ii) CRAR – Tier I Capital (%) 13.11 12.69
iii) CRAR – Tier II Capital (%) 0.37 0.76
iv) Percentage of Shareholding of the :
A Government of India 50.00 50.00
B Government of Andhra Pradesh 15.00 15.00
C State Bank of India (Sponsor Bank) 35.00 35.00
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4. Non-SLR Investment Portfolio
i) Issuer composition of Non SLR Investments
(ii) Non-Performing Non-SLR Investments
Particulars Amount
Opening balance NIL
Additions during the year since 1st April NIL
Reductions during the above period NIL
Closing Balance NIL
Total provisions held NIL
(Rs in '000s)
(Rs in '000s)
5.Asset Quality
No. Particulars Current year (2015-16) Previous year (2014-15)
I Net NPAs to Net Advances (%)
ii Movement of NPAs (Gross)
(a) Opening balance
(b) Additions during the year
© Reductions during the year
(d) Closing balance
iii Movement of Net NPAs
(a) Opening balance
(b) Additons during the year
© Reductions during the year
(d) Closing balance
iv Movement of provisions for NPAs (Excluding
provisions on standard assets)
(a) Opening balance
(b) Provisions made during the year
© Write-off / Write-back of excess provisions
(d) Closing balance
1.40 2.47
2990302 3498163
794833 1430707
1265152 1938568
2519983 2990302
2224258 2550101
58053 499298
805640 825141
1476671 2224258
766044 713542
303445 78638
26177 26136
1043312 766044
I. Non-Performing Assets (Rs in '000s)
S. No Issuer Amount Extent of
Private below investment unrated unlisted
placement grade securities securities securities
Extent of Extent of Extent of
1 2 3 4 5 6 7
i) PSUs NIL NIL NIL NIL NIL
ii) FIs NIL NIL NIL NIL NIL
iii) Banks NIL NIL NIL NIL NIL
iv) Private NIL NIL NIL NIL NIL
Corporates
v) Others (MF-SBIMF)
&Equity shares of
NPCI 698252 NIL NIL NIL NIL
vi) Provisions
held towards NIL NIL NIL NIL NIL
depreciation
Total 698252 NIL NIL NIL NIL
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ii. Details of Loan Assets subject to Restructuring
II. Details of financial assets sold to Securitization (SC) / Reconstruction Company (RC) for Assets Reconstruction
S.No Particulars Current year Previous year
i No. of accounts NIL NIL
NIL NIL
NIL NIL
NIL NIL
NIL NIL
ii Aggregate value (net of provisions) of accounts sold to SC/RC
iii Aggregate consideration
iv Additional consideration realized in respect of accounts
transferred in earlier years
v Aggregate gain / loss over net book value
III. Details on non-performing financial assets purchased / sold
A. Details of non-performing financial assets purchased:
1 (a) No. of accounts / purchased during the year
(b) Aggregate outstanding NIL NIL
2 (a) Of these, number of account restructured during the year NIL NIL
(b) Aggregate outstanding NIL NIL
S.No Particulars Current year Previous Year
NIL NIL
B. Details of non-performing financial assets sold :
S.No.Particulars Current year Previous year
1 No. of accounts sold
2 Aggregate outstanding NIL NIL
3 Aggregate consideration received NIL NIL
NIL NIL
(Rs in '000s)
(Rs in '000s)
(Rs in '000s)
(Rs in '000s)
S.No Particulars Current year Previous year
i Total amount of loan assets subject to restructuring,
rescheduling, renegotiation NIL NIL
ii The amount of Standard assets subjected to restructuring,
rescheduling, renegotiation NIL NIL
iii The amount of Sub-Standard assets subjected to restructuring,
rescheduling, renegotiation NIL NIL
iv The amount of Doubtful assets subjected to restructuring,
rescheduling, renegotiation NIL NIL
(i) = (ii) + (iii) + (iv) NIL NIL
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IV. Provisions on Standard Assets
S.No. Particulars Current year Previous year
1 Provisions towards Standard Assets 292610 248155
6. Business Ratios
S.No Particulars Current year Previous year
I Interest income as a percentage to Working Funds
ii Non-Interest income as a percentage to Working Funds
iii Operating profit as a percentage to Working Funds (Before Provisions)
iv Returns on Assets (%)
v Business per Employee
vi Net Profit per Employee (Rs in '000)
9.35 10.10
1.02 0.81
2.15 2.75
1.41 1.63
Dep+Adv) (Rs’000) 70498 61012
757 709
7. Asset Liability Management – Maturity pattern of certain terms of Assets and Liabilities
Particulars1 to 14
days15 to 28
days
29 days to 3
months
Over 3 months
and upto 6
months
Over 6 months
and upto 1 year
Over 1 year and
upto 3 years
Over 3 year and
upto 5 years
Over 5 years
Total
Deposits 6269117 2848231 9366304 10480420 17870327 17426705 2367495 35392554 102021153
Advances 6558305 10235789 3938968 17698730 14765310 26007449 4236119 15183693 98624363
Investments &
STDRs 697900 0 6650000 500000 15382540 10415182 3360418 14954739 51960779
Borrowings 0 5723095 0 6174397 6614140 14611153 4215196 0 37337981
Foreign
Currency AssetsNIL NIL NIL NIL NIL NIL NIL NIL NIL
Foreign
Currency
Liabilities
NIL NIL NIL NIL NIL NIL NIL NIL NIL
(Rs in '000s)
(Rs in '000s)
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8. Exposures – Exposure to Real Estate Sector
S.No Particulars Current year Previous year
A Direct exposure
I Residential Mortgages above Rs. 20.00 lakhs lending fully secured
by mortgages on residential property that is or will be occupied by the
borrower or that is rented (individual housing loan upto Rs. 20 lakh
may be shown separately)
Up to Rs. 20.00 lakhs
ii Commercial Real Estate
Lending secured by mortgages on commercial real estates
(office buildings, retail space, multi-purpose commercial premises,
multi-family residential buildings, multi-tenanted commercial premise,
industrial or warehouse space, hotels, land acquisition, development
and construction, etc.) Exposure would also include non-fund based
(NFB) limits.
iii Investments in Mortgage Backed Securities (MBS) and other
securitized exposures
a. Residential
b. Commercial Real Estate
B Indirect Exposure
Fund-based and non-fund based exposures on National Housing
Bank (NHB) and Housing Finance Companies (HFCs)
1271188
4238282 3484952
NIL NIL
NIL NIL
NIL NIL
NIL NIL
NIL NIL
NIL NIL
627595
9. Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the bank:
The bank had not exceeded the single borrower limit, group borrower limit fixed by the Board
10. Miscellaneous – Amount of provisions made for Income tax during the year.
Particulars Current Year Previous year
Provision for Income Tax 1076157 9,00,000
11. Disclosure of Penalties imposed by RBI
12. Additional Disclosures as per Accounting Standards applicable to the Bank
The Bank has maintained CRR and SLR as per RBI Act 1934 and Banking Regulation Act 1949 and not defaulted during the
financial year under report.
a) Related parties where control / significant influence exists or with whom transaction have taken place during the year.
Sponsor Bank, their Subsidiaries and Associates:· State Bank of India
(i) Related party disclosure
(Rs in '000s)
(Rs in '000s)
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Refinance received from State Bank of India
Interest paid to SBI
Investments made with:
SBI - in the form of STD Rs
SBI Fund Management Private Limited
Interest received from SBI
Profit on sale of investments on SBI
Contributions to Gratuity Fund with SBI Life Insurance Company Limited
Contributions to Group Leave Encashment Policy with SBI Life
Insurance Company Limited NIL
Current Account balance with SBI
For the yearstended 31 ended 31
March 2016 March 2015
For the year st
Nil Nil
43,43,63 12,27,35
21,88,95,00 22,24,27,00
69,57,53 2,76,07,53
2,08,53,62 1,06,19,85
19,03,09 2,89,79
18,99,31 762
6,54,18
65,43 10,93,19
(iii) Particulars of Managerial Remuneration:
Key Management Personnel
Shri. V. Narasi Reddy, Chairman
Shri. Y.N. Sukumar, General Manager -I
Shri. B. Narayana Sresty, General Manager -II upto 07.11.2015
Shri. S. Prakash Kumar, General Manager –III
Shri. T.V. Krishna Reddy, General Manager -II from 07.10.2015
(ii) Particulars of related party accounts transactions:
The following is the summary of significant related party transactions:
Shri.V.Narasi Reddy Chairman 1836505/- 1526299/-
Shri.Y.N.Sukumar General Manager - I 1347516/- 563603/-
Shri.B.NarayanaSrestyGeneral Manager - II 997864/- 1104524/-
Shri.T.V.Krishna Reddy General Manager - II 342758/- -
Shri.S. Prakash Kumar General Manager - III 1344034/- 1129380/-
For the year stended 31
March 2016 March 2015
For the year stended 31
(Rs in '000s)
(Rs)
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13. Provisions on Rural Advances
S.No. Particulars Current Year Previous Year
a Opening balance in the Rural Advances Provision Account 456736 103086
b The quantum of Rural Advances Provision made in the accounting year Nil 353650
c i. Amount of Draw down made during the accounting year Nil Nil
ii. Provision written back to profit and Loss account 350000 Nil
Total of Draw down 350000 Nil
d Closing balance in the Rural Advances Provision Account 106736 456736
14. Disposal of Complaints:
A) Customer Complaints:
S.No Particulars Nos
a No. of complaints pending at the beginning of the year 03
b No. of complaints received during the year 2015-16 49
c Total Complaints 52
d No. of complaints redressed during the year 52
e No. of complaints pending at the end of the year Nil
B) Award passed by the Banking Ombudsman:
S.No Particulars Nos
a No. of complaints pending at the beginning of the year 02
b No. of complaints received during the year 2015-16 39
c Total Complaints 41
c No. of complaints redressed during the year 40
d No. of complaints pending at the end of the year 01*(since Closed)
e No. of awards passed by Banking Ombudsman 0
f No. of awards implemented Not applicable
g No. of awards pending implementation Not applicable
15. Concentration of Deposits, Advances, Exposures and NPAs
(Rs in '000s)
*Banking Ombudsman Compliant No 4086 received on 21.03.2016. Reply was sent to Banking Ombudsman RBI on
31.03.2016 and was closed on 04.04.2016 by BO RBI.
1. Concentration of Deposits
Total Deposits of Twenty largest depositors 212.84
Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 2.09%
(Rs in Cr)
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Sub-Total (B)
Total (A+B)
1410.56 9.64 0.68 1327.07 15.78 1.18
10601.76 251.99
2.38 9065.61
299.03 3.30
16. Sector Wise NPAs (Rs. in Cr)
Sl. No Sector*
Current Year Previous Year
Outstanding
Total
Advances
Gross NPAsPercentage of
Gross NPAs to
Total Advances
in that Sector
Percentage of
Gross NPAs to
Total Advances
in that Sector
A Priority Sector
1 Agriculture and
allied activities7068.06 119.14 1.69 7040.60 164.53 2.33
2. Advances to
industries sector
eligible as
priority sector
lending
204.24 49.54 24.26 137.10 49.05 35.77
3 Services 48.09 10.40 21.63 32.28 12.05 37.32
4 Personal Loans 1870.81 63.27 3.38 528.56 57.62 10.90
Sub-Total (A) 9191.20 242.35 2.63 7738.54 283.25 3.66
B Non-Priority
Sector
1 Agriculture and
allied activities -
-
-2 Industry
3 Services
4 Personal loans 1410.56 9.64 0.68 1327.07 15.78 1.18
Outstanding
Total
Advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Gross NPAs
2. Concentration of Advances
Total Advances of Twenty largest Borrowers 14.46
Percentage of Advances of twenty largest borrowers to Total Advances of the Bank 0.14%
(Rs in Cr)
3. Concentration of Exposures
Total Exposure of Twenty largest Borrowers/Customers 212.84
Percentage of Exposures to twenty largest Borrowers/Customers to Total Exposure of the
Bank on borrowers/customers. 1.02%
(Rs in Cr)
4.Concentration of NPAs
Total Exposure to top four NPA accounts 2.02
(Rs in Cr)
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17. Movement of NPAs
II. NOTES TO ACCOUNTS
1. Reorganization of Area of Operations of the Bank:
2. Share Capital and Share Capital Deposit:
stThe Bank has been formed vide Notification dated 31 March 2006 issued by Department of Economic Affairs (Banking
Division), Ministry of Finance, Government of India. As per the said notification, the area of the operation of the Bank is in
eight districts of erstwhile State of Andhra Pradesh (Warangal, Medak, Khammam, Nalgonda, Mahabubnagar, Srikakulam,
Vizianagaram and Visakhapatnam districts).
thVide notification dated 20 October 2014 issued by the Department of Financial Services, Ministry of Finance,
Government of India the districts of Warangal, Medak, Khammam, Nalgonda, Mahabubnagar are omitted. Pending
finalization of the modalities for this notification and approvals from the competent authority, the operations of the bank
are being carried out in all the five districts. Financial statements as at the end of the reporting date include assets and
liabilities, income and expenses relating to the Bank in all the eight districts.
In the earlier years, The Government of India, State Government of Andhra Pradesh and State Bank of India (Sponsor Bank)
have contributed Rs.8,90,850.49 (thousands) in the Ratio of 50:15:35 by way of Share Capital Deposit at the time of stRestructuring of RRBs and the same was classified under Share Capital Deposit, up to 31 March 2016.
Pursuant to the Regional Rural Banks (Amendment) Act, 2015 (passed by the Parliament and notified in the Gazette of th thIndia on 12 May 2015) and letter from NABARD (NB.IDD.RRCBD/1637/316 (Gen) 2015-16 dated 30 March 2016, Board
of the Directors of the Bank have approved for:
a) Increasing the Authorized Capital of the Bank from the existing 5,00,000 Equity Shares of Rs. 100/- each aggregating to
Rs. 50,000 (thousands) to 200,00,00,000 Equity Shares of Rs. 10/- each aggregating to Rs.2000,00,00 (thousands) and
b) Conversion of Share Capital Deposit of Rs. 8,90,850.49 (thousands) into 8,90,85,049 Equity Shares of Rs. 10/-
aggregating to Rs. Rs. 8,90,850.49 (thousands).
The said Share Capital Deposit has been converted and shares have been issued in the same ratio of the Share Capital
Contribution ratio. This fresh issue of share capital has not altered the share holding percentages amongst the existing
shareholders of the bank prior to the date of conversion and fresh issue.
Particulars Rs. in CrstGross NPAs as on 1 April 2015 (Opening Balance)
Additions (Fresh NPAs) during the year
Sub-Total (A)
Less:
(I) Upgradations
(ii) Recoveries (excluding recoveries made from upgraded accounts)
(iii) Write-Offs
Sub-Total (B)stGross NPAs as on 31 March 2016 (Closing Balance) (A-B)
299.03
79.48
378.51
60.92
65.40
0.20
126.52
251.99
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Classification Gross Advances Net Advances
Total 106017675 104974363
Standard Assets
Sub Standard Assets
Bad & Doubtful Assets
Add: Provision on Sub-Standard And Doubtful Assets etc
Total Gross Advances
103497691 103497691
776023 655982
1743961 820690
1043312
106017675
st3. Classification of Assets (Advances) as on 31 March, 2016:
4. Inter Bank Participation Certificate (IBPC):
5. Bankers' Cheques:
6. Depositor Education and Awareness Fund (DEAF) Scheme:
During the year the bank has entered into Risk sharing participation Contract with State Bank of India (Sponsor Bank)
under Inter Bank Participation Certificate (IBPC) to the extent of Rs.1283,00,00 (thousands) of which the Bank has issued
Priority sector Advances to SBI and taken Non-Priority Sector Advances from them to the extent of Rs.648,00,00
(thousands) and the balance Rs.635,00,00 (thousands) in cash pay-out. The said cash pay out is grouped in Balances with
Banks – in Other Deposit Accounts (Sch-7)
The Unpaid Banker Cheques which were credited earlier years to P&L account aggregating to Rs.6,37,19 (in thousands)
furnished as contingent liability in Schedule 12.
Disclosure as required under Depositor Education and Awareness Fund Scheme – 2014 notified by the Reserve Bank of
India under DBOD No. DEAF Cell.BC.114/30.01.002/2013-14 dated 27th May 2014:
Sl No Particulars Current Year Previous Year
1 Opening Balance of Amount transferred to DEAF 1,16,00 NIL
2 Add: Amount transferred to DEAF during the Year 2015-16 18,75 1,16,00
3 Less: Amounts reimbursed by DEAF towards Claim NIL NIL
4 Closing balance of amounts transferred to DEAF 1,34,75 1,16,00
(Rs in 000s)
7. Fixed Assets:
8. Accounting for X Bipartite Agreement:
The Bank is in possession of Land at various places to the extent of 11,284.86 square yards, which was gifted by certain
donors / assigned by Government of Andhra Pradesh for construction of Office Buildings. The Bank had incurred site
development expenditure and the said costs were capitalized under Land. During the earlier year the Bank has given
Contract to Bharat Sanchar Nigam Limited (BSNL) for construction of Office Buildings at various locations and amounts
paid to BSNL against the bills submitted for construction / initial advance aggregating to Rs.3,84,17 (thousands) which
was disclosed under Capital Work in progress in Fixed Assets Schedule.
Department of Financial Services, Ministry of Finance, Government of India, vide its Order No. F. No.8/ 1 / 2015 / RRB dated st31 July 2015 notified the revised pay scales to RRB staff in line with X bipartite wage revision. Accordingly, the Board of
thDirectors of the Bank in their meeting held on 08 August 2015 resolved to implement the same to the Bank. In pursuance stof the said Order, the bank has revised the pay and allowances of the employees for the period commencing from 01
November 2012 onwards. This agreement resulted in additional employee costs of Rs.47,11,33 Thousands (net of Rs.
53900 Thousands provided in earlier years) for the current financial year. This agreement is effective for the period upto st31 October 2017.
(Rs in 000s)
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9. Income Tax Demands:
10. Data Purification and Asset Classification
11. Insurance Claims
12. Crop Loan Waiver Scheme
Income tax Department has raised certain demands on the Bank, with regard to assessment of income of the bank and the
tax payable thereon by the Bank. The Bank is contesting demand raised by the Income Tax Department and pursuing the
same. Against the said tax demands, based on its estimate, the Bank recognized an amount aggregate to Rs.18,14,00
(Thousands) as Contingent liabilities and are shown in Schedule 12 – “Contingent Liabilities - Claims against the Banks
not acknowledged as debts”. Against the disputed claims, the Bank paid an amount of Rs. 23,27,78 (Thousands) and the
same is being shown in Schedule 11 – “Other Assets - Income Tax paid against Disputed Demand”. The Bank is confident of
resolving the dispute in it'sfavour. Liability, if any, will be charged to Profit and Loss account in the year of settlement of
these demands/disputes.
The Bank is having a seamless system in its Core Banking Solution (CBS) for recognizing and identifying the non
performing assets in accordance with the extant guidelines. Further, during the year, the management has instructed all
the branches to review, manually, the classification of advances in accordance with the extant guidelines. As per the
confirmations received from branches and the regional offices, the divergence noticed during such manual verification
has resulted insignificant divergences. These insignificant divergences arose due to data input errors into CBS. To
mitigate these insignificant divergences, the management has initiated steps for complete verification of its loan
accounts and data purification on CBS. In the opinion of the Management such deficiencies will not have significant
effect on the financial results of the Bank.
The Bank, subsequent to the balance sheet date has received Rs.2,00,00 (in thousands) from Insurance Company against
claim of 4,09,26 (in thousands) towards the burglary and theft occurred in the financial year 2014-15. Management is
confident of recovery of remaining amount claimed and are of the view that no provision is required in this regard.
s
The State Governments of Telangana and Andhra Pradesh had announced the Crop Loan Waiver Schemes and the details
are as under:
Amount Received 1195,82,00 260,02,00
Amount Utilized. 1179,76,00 259,74,00
Amount Refunded 16,06,00 28,00
Govt of Telangana Govt of Andhra Pradesh
(Rs in 000s)
The Bank has complied with the IRAC norms of the RBI after considering these amounts and subsequently these loans were
renewed.
13. Fraud Cases:
Details of Fraud cases are as under: (Rs in 000s)
Particulars 31.03.2016 31.03.2015
Provision at the beginning of the year 1,58,27
Less: Written off during the year Nil Nil
Add: Additional provision created during the year Nil Nill
Less : Provision reversed during the year 13,74 Nil
Provision as at the year end 1,44,53 1,58,27
Number of fraud cases at the year end 8 9
1,58,27
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14. The figures mentioned in Balance Sheet, Profit & Loss Account and Schedules 1 to 16 have been rounded off to the
nearest thousand rupees.
15. Previous Year's figures have been regrouped /reclassified/recast wherever necessary to confirm the current year
classification.
Place: Ramachandrapuram, Medak DistDate: 20th May 2016
As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants
For Andhra Pradesh Grameena Vikas Bank
(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)
Partner General Manager-III Chairman
Membership No.201570
Firm Registration No.000459s
( C. L. Naidu) (V. Hanumantha Reddy) (S. Chellapandi)
Director Director Director
(T. Venkata Reddy) (K.V. Maruthi RaoDirector Director Director
(Smt.V.Karuna, IAS) (Smt. K. Sunitha, IAS)Director Director
(V.S. Gupta)
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stCASH FLOW STATEMENT (AUDITED) FOR THE YEAR ENDED 31 March, 2016
Particulars 2015-16 2014-15
Cash Flows from Operating Activities:
Net Profit after Tax 2234707 2016072
Add:
Depreciation debited to P&L 92525 38024
Provision for Income Tax 1076157 900000
Provision for IT Earlier year's Adjustment 88183 0
Deferred Tax Asset Adjustment 13277 19267
Provision for Rural Advances (350000) 353650
Interest Paid on Amounts received from
RBI, SBI, NABARD 2739088 2035532
Less:
Income on Investments (1714299) (1465834)
Operating profit before working capital changes 4179638 3896711
Working Capital Changes:
Increase / (Decrease) in Deposits 19221138 14888209
Increase / (Decrease) in Liabilities and Provisions (1795476) 3082295
(Increase) / Decrease in Advances (19635858) (5462349)
(Increase) / Decrease in Other Assets (951623) (1575801)
Cash generated from Operations (3161819) 10932354
Less: Income Tax Paid (890000) (770000)
Net cash from Operating Activities A 127819 14059065
Cash Flows from Investing Activites:
Purchase of fixed assets (141906) (108194)
Purchase of Investments (2867797) (3135395)
Income from Investments 1714299 1465834
Net cash from Investing Activities B (1295404) (1777755)
Cash Flows from Financing Activites:
Funds from SBI, NABARD, NHB 5258019 9276122
Interest paid to SBI, NABARD, NHB (2739088) (2035532)
Net cash from Financing Activities C 2518931 7240590
Effect of Foreign Exchange Rate Changes
Net Increase/(Decrease) In Cash And Cash Equivalents
(A+B+C) 1351346 19521900
(Rs in '000)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
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Particulars 2015-16 2014-15
Place: Ramachandrapuram, Medak Dist.
Date : 20th May 2016
For M.Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No. 000459s
For Andhra Pradesh Grameena Vikas Bank
(CA V.K.Muralidhar)
Partner
Membership No. 201570
(V. Narasi Reddy)
Chairman
(S. Prakash Kumar)
General Manager-III
(Rs in '000)
Add: Opening cash and cash equivalents
I) Cash on hand 752015 728000
ii) Balances with Reserve Bank of India & Other banks 3784936 3053123
iii) Deposit Accounts 27766700 9000628
33654997 32303651
Note:
Closing Cash and Cash Equivalents
I) Cash on hand 843756 752015
ii) Balances with Reserve Bank of India & other banks 4435141 3784936
iii) Deposit Accounts 28376100 27766700
Total 33654997 32303651
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Head office : 2-5-8/1 Near Ambedkar Statue, Ramanagar,
Hanamkonda - 506 001 warangal
Ph: 0870-2577256 Tollfree: 18004257900
e-mail: [email protected] www.apgvbank.in
I I
I
Honourable Chief Minister of Telangana Shri K. Chandra Sekhar Rao inaugurated our Yerravalli Branch and addressed the customers.
Mobile ATM: Launched on 31.03.2016 by Shri Hardayal Prasad, Chief General Manager, SBI, LHO, Hyderabad, is going round our service area villages and extending ATM facilities, apart from spreading financial literacy, This has attracted huge media attention both print and electronic, highlighting the Bank's proactive