we are with you! - apgvbank.in
TRANSCRIPT
we are with you!
15�� Annual Report 2019-20
Empowering Rural Lives
Chairman
With Best Compliments from
K. Praveen Kumar
Andhra Pradesh Grameena Vikas Bank
Head Office, Warangal - 506 001
01
we are with you!Annual Report 2019-20
Inside the Report
1. Letter of Transmittal 03
2. Geographical Presence & Regional Offices 04
3. Board of Directors 05
4. Executives Team 06
5. Head of Departments & Regional Managers 07
6. Our Mentors, Regulators / Supervisors 08
7. Highlights 2019-20 09
8. Chairman's Message 10
9. Key Performance Indicators 12
10. Board of Directors Report 17
11. Auditor's Report 59
12. Balance Sheet, Profit & Loss 65 Account and Schedules
S.No. Particulars Page No.
VisionBe the preferred Bank of Rural India for development and
transformation.
we are with you!
MissionBe a financial heart, providing Sustainable livelihood to rural
population through Innovative Financial and Technology solutions.
Respect to Systems and Procedures / Good Governance / Transparency /
Service with compassion / Ethics / Team work and People Focus.
Values
02
we are with you!Annual Report 2019-20
Andhra Pradesh Grameena Vikas BankHead Office : Warangal
Date : 30.06.2020
The Secretary,
Ministry of Finance, Dept. of Financial Services
Banking Division, Government of India
Jeevan Deep Buildings, 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.
A Report of Board of Directors as to the Bank's working and its activities during the period
st st1 April 2019 to 31 March 2020
A copy of the Audited Balance Sheet and Profit and Loss Account for the year ended st31 March 2020.
stA copy of the Auditor's report in relation to the Bank's accounts for the period 1 April 2019 to st31 March 2020.
Letter of Transmittal
Yours faithfully,
(K. Praveen Kumar)Chairman
03
we are with you!Annual Report 2019-20
SrikakulamSaraswathi Complex, Baker sahed petaSrikakulam 532001, [email protected]
Vizianagaram8-12-64/1, Beside Himagiri Theatre,Vizianagaram 535002, [email protected]
Visakhapatnam52-14-77/1, APHSC Building,Near Eenadu office, SeethammadharaVisakhapatnam [email protected]
ParvathipuramVizianagaram Dist. 1435-27-112, Ist Floor, By Pass Road, Opp. Sai Ram [email protected]
Regions in Telangana State
KhammamWyra Road, Khammam 507001Tel [email protected]
NalgondaRamgiri, Nalgonda 508001Tel [email protected]
WarangalABK Mall,Ramnagar, HanamkondaWarangal 506001Tel [email protected]
MahabubnagarH.No: 10-4-16/4/2, 4th Floor, YenugondaMahabubnagar - 509 002, [email protected]
SangareddyH.No.5-1-28/4, 2nd Floor, By Pass Road, Prashanthnagar, Rajampet, Sangareddy. Dist: State: Telangana - [email protected]
AshoknagarShekar Arcade, Opp. Beeramguda Kaman,RC Puram Mandal Dist. Sangareddy [email protected]
Bhadrachalam (Kothagudem)D-No: 3-2-199, IInd Floor, Vidyanagar ColonyChunchupally, Bhadradri Kothagudem (Dist)- [email protected]
Regions in Andhra Pradesh
Geographical sence & Regional Offices pre
04
Head Office :D. No. : 2-5-8/1, Near Ambedkar Statue, Ramnagar, Hanamkonda - 506 001 Warangal [Telangana]Ph: 0870-2577769 Tollfree: 1800-121-0354 email : [email protected] www.apgvbank.in I I I
64%
24%
12%(Rural)
(Semi Urban)
(Urban)
BranchClassification
BOARD OF DIRECTORS
Shri K. Praveen KumarChairman
(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
Nominee of Reserve Bank of India under Section 9 (1) (b) of the Regional Rural Bank's Act 1976
Shri Y. Rambabu Asst. General Manager,
, Reserve Bank of India, HyderabadHRMD
Nominee of NABARD under section 9 (1) (c) of the Regional Rural Bank's Act, 1976.
Shri Sukanta K Sahoo, Deputy General Manager
NABARD, TSRO, Hyderabad
Nominees of State Bank of India under Section 9 (1) (d) of the Regional Rural Bank's Act, 1976
Shri Bhuvanendra TakoorDeputy General Manager (ABU), State Bank of India, LHO, Amaravati
Shri S. GanesanGeneral Manager (RRBs), State Bank of India, Corporate Centre, Mumbai
Nominees of State Government under Section 9 (1) (e) of Regional Rural Bank's Act, 1976
Shri Rayi Ravi
Additional Secretary
Finance Department
Govt. of Telangana
Vacant
Shri KVV Satyanarayana, IRASSpecial Secretary to Govt. (B&IF)
Finance Department, GOAP, Amaravathi.
Vacant
05
we are with you!Annual Report 2019-20
Executive Team
Shri K. Praveen KumarChairman
Shri P.PardhasaradhiGeneral Manager -IV
Shri G.SukumarGeneral Manager-I
Shri G. NagarajuGeneral Manager - III
Shri N.V. RamanaGeneral Manager - V
Shri K.E SubrahmanyamuGeneral Manager - VI
Shri Ch.Sree Rama SomayajiGeneral Manager - II
06
we are with you!Annual Report 2019-20
Shri S. LaxmanAGM (Credit & RRM)
Shri M.B.T. ReddyAGM (FIC)
Shri T.V.V. PrabhakarAGM (A&I)
Head of Departments
Regional Managers
Shri K. Vinod ReddyAGM (Per & HRD)
Shri B. PrakashAGM & RM, Vizianagaram
Shri Riyaz MohammadRM, Parvathipuram
Shri M. Manohar ReddyAGM & RM, Vishakapatnam
Shri B. Srinivasa MurthyRM, Khammam
07
we are with you!Annual Report 2019-20
Shri A.S. SarmaChief Manager (P&D)
Shri K. Amarender ReddyChief Manager (SLC)
Shri G. Sreedhar ReddyChief Manager (IT)
Shri N.V. Srinivas RaoChief Manager (Accounts)
Shri P. RajuAGM & RM, Warangal
Shri D. V. Gurunatha RaoAGM & RM, Srikakulam
Shri D. Vishwa PrasadAGM&RM, Ashoknagar
Shri B.R.V. Manoj KumarAGM&RM, Mahabubnagar
Shri Mallempati RaviAGM&RM, Sangareddy
Shri S.L.N. PrasadAGM & RM, Nalgonda
Shri I. SrikanthRM, Bhadrachalam
Our Mentors
Shri Dinesh KharaManaging DirectorState Bank of India
Corporate Centre, Mumbai
Shri SP SinghChief General Manager (A &S),
State Bank of IndiaCorporate Centre, Mumbai
Shri Rajnish KumarChairman
State Bank of India Corporate Centre, Mumbai
Our Regulators Supervisors/
Shri Vijay KumarChief General Manager,
NABARD, TSRO, Hyderabad
08
we are with you!Annual Report 2019-20
Shri S. SelvarajChief General Manager,
NABARD, RO, HyderabadAP
v Deposits increased to Rs. crore 7 crore18495.69 Rs.16055.9 with a from the previous year's level of
growth rate of % 15.20 . (Rs. 2439.72 Crore)
v Advances at Rs.19322.97 crore increased by Rs 2664.56 Crore @ 16.00% from Rs.16658.41 crore.
v Operating Profit increased by 26.60% to Rs 1213.02 Crores from Rs 958.17 Crores.
v Gross NPA as % to total Advances has come down to 1.03%(Rs.198.50 Crore) from 1.14%.
v Bank has achieved Net NPA of Zero compared to previous year's Rs.55.62 crore.
v Cost to Income Ratio (Expenses Ratio) decreased from 28.19 % to 25.26%.
v Non-interest Income had increased by 42.36% to Rs.409.93 crore from Rs.287.95 crore.
v Yield on Advances improved to 11.55% from 11.35%.
v Net Interest Margin improved to 4.73% from 4.36%.
v Net Interest Income up by 15.92% to Rs.1213.04 Crore from Rs.1046.44 Crore.
v Business per Branch increased to 48.79 Crore from 42.21 Crore
v Business per employee increased to 11.44 Crore from 10.28 Crore.
v Net Profit per Branch increased to 79.69 Lakh from 14.46 Lakh.
v Net Profit per Employee increased to 18.69 Lakh from 3.52 Lakh.
v Reserves increased by 27% to Rs.2905 Crore from Rs.2287 Crore.
v Housing Loan portfolio increased by Rs.754.44 Crore @ 39.88% to Rs.2646.31 Crore from Rs.1891.87
Crore
v Gold Loan portfolio doubled to reach Rs.953.62 Crore from Rs.485.27 Crore.
v Bank has opened 7 more Asset Management Hubs during the FY taking total hubs to 26.
v Bank has shifted its Staff Learning Centre, IT Cell& Sangareddy Regional Office to Banks own, newly
constructed & spacious premises in Sangareddy
Highlights 2019-20
Total Business37819 Crore
15.60%
Net Worth2999.03 Crore
25.97%
Net Profit617.58 Crore
451.25%
16.15%Capital adequacy Ratio
11.55%Yield on Advances
100%Provision Coverage Ratio
104.47%Credit - Deposit Ratio
09
we are with you!Annual Report 2019-20
Chairman’s Message
It gives me great pleasure to place before you the
highlights of Bank's performance during the financial
year 2019-20.
The financial year ending March 31, 2020 was a very
good year for APGVB. The trust of our Customers and the
dedication of our employees helped us achieve
phenomenal results.
In the FY 2019-2020, Bank's total business grew by
15.60% to Crore from the previous year's Rs. 37818.66
level of Rs. 32714.37 Crore. The deposits grew by
15.20 from the previous year's % Rs. 18495.69 , to Crore
level of Rs. 16055.97 Crore & gross advances of Bank
recorded a growth rate of 16.00% & grew to
Rs. 19322.97 Crore from the previous year's level of
Rs. 16658.41 Crore The growth in credit was mostly
driven by Housing loan portfolio & the portfolio grew by
39.87% to Crore from previous year's level of Rs. 2646.31
Rs. 1891.87 Crore. We ended the year with a net worth
of Crore & at the end of year we had over Rs. 2999.03
3300 employees.
The primary contributors to this stellar year were our
continued focus on diversifying business – especially
Housing Loans and our ability to garner high value
customers in a consistent manner. In addition, we paid
relentless attention to our operating discipline by
strengthening Branch visit mechanism.
Profitability
FY 2019-2020 has brought about s ignif icant
improvement on asset quality front, provision coverage,
NIM and yield on advances. The profit of the Bank could
have been much higher but for the pension provisions
made as per the Government of India guidelines.
The net interest income of the Bank stood at 1213.04 Rs.
Crore registering a healthy growth of 15.90%.The
Operating profit of the Bank grew by 26.60% to
Rs. 1213.00 Crore from the previous year's level of
Rs. Rs. 958.17 Crore. The bank made a net profit of
617.58 crore compared to 112.04 Crore recorded in Rs.
the previous year.
Concerted efforts towards recovery in stressed assets
and strict monitoring led to fall in Gross NPA ratio of the
Bank to 1.03% in March 2020 from 1.14% in the
previous year, Bank has made remarkable decision to
10
we are with you!Annual Report 2019-20
K. Praveen KumarChairman
Yours sincerely,
(K. Praveen Kumar)
Chairman
earmark 100 % Provision Coverage Ratio compared to
previous year's 70.59% , which resulted in Net NPA
becoming 0%.
Investments portfolio reduced by Rs. 1553.45 Crore
during FY 2019-20. Bank has to dis invest to
accommodate the funding of pension provision (Fully
provided).Further, Investment to deposit ratio reduced
to 20.76% from 33.58%.
Technology initiatives
Information Technology has been the backbone of the
Bank supporting seamless operations, customer
outreach, better products and services and business
growth. The Bank has witnessed enormous amount of
technology transforming the Bank, keeping pace with
the rest of the industry and enabling the Bank to achieve
the business volumes that it has today.
With over 12.46 Lakh Active Debit cards, Bank is pioneer
in catering to the people in remote villages.
APGVB Bank Mobile Banking app, one of the top rated
mobile Banking App across all RRBs has achieved more
than 5 Lakh Downloads & over 3.2 lakh Registered users
as on March 31, 2020. This reflects the growing
customer confidence in our products.
Bank has installed around 90 SWAYAMs (Barcode based
Passbook Printing Kiosks) in urban pockets for the
convenience of customers.
Bank has also launched multiple In-House IT portals like
RFIA Audit Portal, Snap Audit Portal , Staff Annual
Appraisal portal , MIS Portal , Suit file dashboard to name
a few during the FY 2019-20 for easy & effective
monitoring of data.
Customer satisfaction
With a view to increase customer convenience, the Bank
has created few touch points. The Bank has more than
2028 operating Bank Mitras and 775 Branches. Bank is
among the leading RRBs in extending social security
initiatives like APY, PMJJBY, PMSBY and other schemes to
its valued customers as envisaged by Government. More
than 1600 Financial Literacy awareness camps were
conducted during FY 2019- 20 by the Bank Financial
Literacy Centres.
During the last few weeks in March we started to see the
impact of COVID-19, during which our team worked
with incredible dedication towards the service of the
customers. Our focus has been and remains the safety of
our employees, the delivery of service to our customers
and the financial well-being of the Bank. Immediately,
Bank had taken preventive measures to safeguard the
interest of Staff & advised all staff members to attend
duty on alternate day basis.
A strong Balance Sheet, with a net worth Rs. 2999.03
Crore and Capital Adequacy position of the Bank which
improved from 15.50% in March last year to 16.15% in
March 2020, puts us in an position.excellent
Way Forward
As government is proposing phased unlock of all
activities &critical vaccine solutions are in advanced
stages, we will be closely monitoring the impact of
pandemic and will be increasing our Business
accordingly. Efforts will also be directed to achieve a
more sustainable mix of business.
We remain extremely focussed on the needs of our
customers and even more ready to extend our support
to the customers as we continue to emerge from this
unprecedented situation.
I want to especially thank our team for demonstrating
incredible ability to execute throughout the last
financial year and for their stellar performance and
dedication under a difficult situation in the past few
months. Looking ahead, I am optimistic of the
opportunities of the work we are doing for our
customers and the approach we have put up in place.
11
we are with you!Annual Report 2019-20
Key Performance Indicators Rs. in 000's
Indicators 2017-18 2018-19 2019-20
A KEY PERFORMANCE INDICATORS
1 No. of Districts covered 22 22 24
2 No. of branches 768 775 775
a) Rural 494 499 499
b) Semi urban 181 183 183
c) Urban 52 52 52
d) Metropolitan 41 41 41
Ultra-Small Branches 488 488 488
3 Total Staff (excluding Sponsor Bank Staff) 3160 3181 3305
of which, Officers 1925 1976 2085
4 Deposits 143336293 160559557 184956906
Growth % 11.82 12.02 15.20
5 Borrowings outstanding 80412059 64710050 84658752
6 Gross Loans & Advances outstanding 143166957 166584100 193229653
Growth % 15.75 16.36 16.00
of 6 above, loans to Priority Sector 131227119 149713863 173765307
of 6 above, loans to Non Target Groups 11939837 13469285 19464346
of 6 above, loans to SC/ST 32116955 36109816 38517022
of 6 above, loans to SF/MF/AL 87126238 100301277 109918623
of 6 above, loans to Minorities 8420724 9921516 11569468
7 CD Ratio 99.88 103.75 104.47
8 Investments Outstanding 114273690 98796639 119700729
SLR Investments Outstanding 57638582 53170560 37538535
Non-SLR Investment Outstanding 56635188 45626079 82162194
B AVERAGE
9 Average Deposits 133477904 144685619 168335004
Growth % 15.55 8.40 16.35
10 Average Borrowings 57646511 77150828 66145232
Growth % 26.81 33.83 -14.27
11 Average Gross Loans And Advances 129871031 152339085 170747803
Growth 18.00 17.30 12.08
12 Average Investments 74664481 87720536 85556869
Growth % 26.87 17.49 -2.47
Average SLR investments 48841624 54429941 44876389
as % to average deposits 58.35 37.61 26.66
Average Non-SLR Investments 25822857 33290595 40680480
as % to Average deposits -7.80 28.92 24.17
13 Average working funds 223950016 255718080 278936559
12
we are with you!Annual Report 2019-20
Rs. in 000's
C LOANS ISSUED DURING THE YEAR
14 Loans issued during the year 106919716 102508485 118025557
Growth % 7.34 -4.12 15.13
of 14 above, loans to Priority Sector 92757898 84016632 98782426
of 14 above, loans to Non-target Groups 14161818 18491853 19243131
of 14 above, SC/ST 21244947 27904191 31560519
D PRODUCTIVITY
15 Per Branch 373051 422666 487984
Per Staff 90666 102843 114429
E RECOVERY PERFORMANCE
16 TOTAL
Demand 115545127 96136986 108645648
Recovery 100949732 84997743 96615493
Over dues 14595395 11139243 12030155
Recovery % 87.37 88.41 88.92
(June position)
17 FARM SECTOR
Demand 49736937 40870154 39648964
Recovery 46449980 36544683 30878654
Over dues 3286957 4325471 8770310
Recovery % 93.39 89.42 77.88
(June position)
18 NON-FARM SECTOR
Demand 65808190 55266832 68996683
Recovery 54499751 48453060 65736838
Over dues 11308439 6813772 3259844
Recovery % 82.82 87.67 95.27
(June position)
F ASSETS CLASSIFICATION
19 (a) Standard 141210532 164693106 191245777
(b) Sub-Standard 262674 495393 813893
1520235 1216164 1162106(c) Doubtful
(d) Loss 173516 179437 8956
Total 143166957 166584100 193230732 Standard Assets as % to Gross Loans & Advances out standings 98.63 98.86 98.97
G PROFITABILITY ANALYSIS
20 Interest paid on
a) Deposits 8414939 8512819 10074433
b) Borrowings 3372854 4716476 3830292
Indicators 2017-18 2018-19 2019-20
13
we are with you!Annual Report 2019-20
21 Salary 2170109 2353771 2668873
22 Other Operating Expenses 1008736 1408528 1430633
23 Provisions made during the year
(a) Against NPA's 594063 -314366 1027390
(b) Other Provisions 178863 8390073 2168809
(c) Amortization 0 0 0
24 Interest received on
(a) Loans & Advances 14850970 17287981 19729785
(b) Investments 5418718 6405778 6305348
(c) Others -
25 Other Income 2974895 2879522 4099300
26 Loss / Profit 5030146 1120383 6175731
H Other information
27 Share Capital Deposit Received Nil Nil Nil
28 DI & CGC - - Nil
(a) Claims settled cumulative - - Nil
(b) Claims received but pending adjustment - - Nil
(c) Claims pending with Corporation - - Nil
29 Cumulative Provision
(a) Against NPAs 1676144 1984957
(b) Against Standard Assets 406021 595992
(c) Against Intangible Assets Frauds etc. 231331 616 Nil
30 Interest Derecognized
(a) During the year Nil - Nil
(b) Cumulative Nil - Nil
31 Loans Written off during the year
(a) No. of Accounts 7448 47 5489
(b) Amount 122662 5541 367300
32 Accumulated loss Nil Nil Nil
33 Reserves 21618439 22867634 29049482
Net NPAs 404383 556161 0
% Provisions to gross NPAs 79.31 70.57 100
% Gross NPAs to advances 1.37 1.14 1.03
% Net NPAs advances 0.29 0.34 0
CRAR (%) 15.59 15.50 16.15
Rs. in 000's
Indicators 2017-18 2018-19 2019-20
14
we are with you!Annual Report 2019-20
Total Business (Rs in Crore)
15
we are with you!Annual Report 2019-20
20
80
4 25
18
7
32
71
4
28
65
0
15.60%Growth Rate
FY 20FY 19FY 18FY 17FY 16
37
81
9
17
34
6
FY 15
Deposits (Rs in Crore)
10
20
2 12
81
9
16
05
6
14
33
4
15.20%Growth Rate
FY 20FY 19FY 18FY 17FY 16
18
49
6
82
80
FY 15
Advances (Rs in Crore)
10
60
2 12
36
9
16
65
8
14
31
7
16.00%Growth Rate
FY 20FY 19FY 18FY 17FY 16
19
32
3
90
66
FY 15
Net Profit (Rs in Crore)
22
3
35
2
11
2
50
3
451.25%Growth Rate
FY 20FY 19FY 18FY 17FY 16
61
8
20
2
FY 15
Per Employees Business (Rs in Crore)
7.0
5 8.4
5
10
.28
9.0
7
11.27%Growth Rate
FY 20FY 19FY 18FY 17FY 16
11
.44
6.1
0
FY 15
Per Branch Business (Rs in Crore)
27
.70 32
.80
42
.21
36
.30
15.60%Growth Rate
FY 20FY 19FY 18FY 17FY 16
48
.79
23
.83
FY 15
16
we are with you!Annual Report 2019-20
Makers of Excellence 3.0APY Challenger’s Cup Out performersAPY Leadership Capital
Awards received during 2019-20
Project Loan of Rs. 5 Crore sanctioned by our Bollaram (V) Branch through RASMECCC, Ashoknagar to
M/s Sri Himaghna Constructions, Hyderabad for construction of House Flats.
Project Finance by BankDuring the year, Bank has taken up project financing for Construction of House flats, Independent Houses to Builders
in a big way under its CRE-RH Loan scheme and financed such projects in surroundings of Hyderabad, Warangal,
Kothagudem, Vishakapatanam etc.
Board of Directors Report
2019-20
Lighting up the lives of rural people
17
we are with you!Annual Report 2019-20
2017-18 2018-19 2019-20
2026
.97
1485
.1
541.
87
1728
.8
2369
.38
640.
58
Total Interest Income
1972
.98
630.
53
2603
.51
Director's ReportWe have pleasure in presenting the 15th 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 the financial
year ended on 31st March 2020.
FINANCIAL PERFORMANCE
Business Review
The Bank's total business has registered a growth of
Rs. 5104.26 Crore at 15.60% to reach Rs. 37818.66 Crore as on st st31 March 2020 as against Rs. 32714.40 Crore as on 31 March
2019.
During the period the deposits grew by 15.20% to Rs. 18495.69
Crore from the previous year's level of Rs. 16055.97 Crore &
loan portfolio increased by 16.00% & grew to Rs. 19322.97
Crore from the previous year's level of Rs. 16658.41 Crore.
The growth in credit was mostly driven by Housing loan
portfolio & the portfolio grew by 39.87% to Rs. 2646.31 Crore
from previous year's level of Rs. 1891.87 Crore.
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
2017
-18
2018
-19
12
45
9
14
68
7
17
34
6
20
80
4 25
18
7
28
65
0
32
71
4
Total Business at a glance (Rs. in Crore)
37
81
9
2019
-20
Net Interest Income
Net interest income increased by 15.92% from Rs. 1046.44
Crore in FY 2019 to Rs. 1213.04 Crore in FY2020. Total interest
income increased from Rs. 2369.38 Crore in FY2019 to
Rs. 2603.51 Crore in FY2020 registering a growth of 9.88%.
Total interest expenses increased from Rs. 1322.93 Crore in
FY2019 to Rs. 1390.47 Crore in FY2020.
Interest Income and Expenditure
Interest income increased from Rs. 2369.38 Crore in FY2019
to Rs. 2603.51 Crore in FY 2020 registering a growth of 9.88%.
The interest income is contributed mainly by increase in
interest income on loans and advances, which increased from
Rs. 1728.80 Crore to Rs. 1972.98 Crore registering a growth of
Rs. 244.18 Crore (@14.12%).During this year interest income
received from investments was Rs. 630.53 Crore.
The interest expenditure increased from Rs. 1322.93 Crore in
FY 2019 to Rs. 1390.47 Crore in FY 2020. The Interest
expended on deposits increased by 18.34% from Rs. 851.29
Crore in FY 2019 to Rs. 1007.44 Crore in FY2020. Bank has paid
Rs. 383.03 Crore towards interest on Borrowings (refinance
from NABARD, NHB and MUDRA and Intrest paid on SBI /
HDFC OD accounts) during the year compared to Rs. 471.65
Crore paid during FY 2019 with a decrease of Rs. 88.62 Crore.
Net Interest Income
FY 2019 FY 2020
we are with you!Annual Report 2019-20
19
1046
.44
1213
.04
(Rs. in Crore)
Interest income on advances
Total Interest Income
Interest Income on Investment
(Rs. in Crore)
FY 2018
848.
19
Income and Expenditure
Interest Expenditure
Non-Interest Income and Expenses
Non-interest income increased by 42.36% to Rs. 409.93 Crore
in FY2020 as against Rs. 287.95 Crore in FY2019. During the
year, Bank's Non-interest expenditure increased marginally
by 8.96% to Rs. 409.95 Crore compared to Rs. 376.23 Crore
incurred in the FY 2019.
Operating Expenditure
Operating expenditure has increased by Rs. 33.72 Crore (8.96%) to Rs. 409.95 Crore in FY 2020 from Rs. 376.23 Crore in previous FY 2019. The marginal increase in operating expenditure is due to increase in Employee costs fromRs. 266.19 Crore to Rs. 272.26 Crore.
Net Profit
The Net profit of Bank was at Rs. 617.57 Crore for the FY 2020 as compared to Rs. 112.04 Crore in FY 2019. Banks net profit increased substantially by 451.25% as Bank had to make lesser provision of Rs. 206.32 Crore towards Pension liability compared to Rs. 837 crore made in the previous fiscal.
(Rs.in Crore)
Profit Analysis
Non-Interest Income increased from Rs. 287.95 Crore in FY
2019 to Rs. 409.93 Crore in FY 2020 registering a healthy YoY
growth of 42.36%. The growth in Net Interest Income (NII) is
mainly due to increase in PSLC (Priority Sector Lending
Certificate) income from Rs. 31.85 Crore to Rs. 112.13 Crore.
Interest income also increased from Rs. 2369.38 Crore in FY
2019 to Rs. 2603.51 Crore in FY 2020 recording a growth rate
of 9.88%. Bank’s operating profit (Before Provisions and
Contingencies) increased from Rs. 958.17 Crore recorded in
FY 2019 to Rs. 1213.02 Crore in FY 2020 registering growth of
26.60%. Despite earmarking Rs. 319.62 Crore for provisions &
contingencies including provisions to cushion against future
slippages bank has registered very good profit this year.
The other factors that impacted the Net Profit figure are:
a) A sum of Rs. 3.96 crore was recovered from written
off/AUCA accounts.
b) Booked a Profit of Rs. 40.67 crore from Treasury operations
compared to Rs. 14.50 crore in the previous fiscal.
Interest Expenditure
Interest ExpenditureInterest Paid on deposits
Interest Paid on Borrowings
Particulars 2018-19 2019-20 Growth %
Interest Income 2369.38 2603.51 9.88%
Interest Expenditure 1322.93 1390.47 5.11%
Non-Interest Income 287.95 409.93 42.36%
Non-Interest Expenditure 376.23 409.95 8.96%
Gross Profit/Operating profit 958.17 1213.02 26.60%
Taxes 45 276.93 515.40%
Deferred Tax Asset & 6.44 1.10 -82.92%Earlier year adjustments (excess)
Provisions and Contingencies 807.57 319.62 -60.42%
Prior Period depreciation 0 0 & rent
Net Profit 112.04 617.57 451.20%
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
120159 180 202 223
503
112
618Net Profit at a glance
we are with you!Annual Report 2019-20
20
42.36%YoY Growth in Non-Interest Income
33
7.2
9 84
1.4
9
11
78
.78
47
1.6
5
85
1.2
9 13
22
.94
38
3.0
3 10
07
.44
13
90
.47
352
647%YoY Growth in Non Profit
2017-18 2018-19 2019-20
(Rs in Crore)
AssetsO/s
Provision
O/sProvision
2018-19 2019-20
c) Share of Gross NPAs as a % of Total Advances reduced
from 1.14% in FY 2019 to 1.03% in FY 2020.
d) Growth in Business also contributed to increase in
interest spread and in turn increase of profit of the Bank.
e) Bank has earmarked 100% provisions for non-performing
assets.
f) Increase in income on PSLC from Rs. 31.85 Crore per FY
2019 to Rs. 112.13 Crore in FY 2020.
Provisions for NPAs
Bank has made a Provision of 198.5 Crore for non-performing
assets in FY 2020 as against Rs. 133.48 Crore in Fy2019. Bank
has accounted for 100% provision coverage ratio this year. The
Bank has written back a provision of Rs. 36.73 Crore on NPAs
during the year.
Due to COVID-19, Bank has followed a graded approach as per
RBI guidelines in making provisions for stressed assets and
accordingly 5% provision was made during March 2020
quarter amounting to Rs. 98,82,037 Rupees only.
S.
No.Ratios
2018-
19(%)%
Change2019-
20(%)
Standard 16469.31 49.03 1912.47 59.60
Sub Standard 49.54 7.6 81.39 81.39
Bad & Doubtful 121.62 107.94 116.21 116.21
Loss 17.94 17.94 0.90 0.90
Total 16658.41 182.51 19322.97 258.1
we are with you!Annual Report 2019-20
8 % of Non Interest Income (Other Income) to Working Funds 1.13 1.473 0.09%
9 Operating Profit (Before provisions) to Working Funds 3.75 4.35 16.00
10 Return on Assets(Net profit as % to working Funds) 0.44 2.21 402.27
11 Return on Equity 4.71 20.59 337.15
12 Total Business Per Employee (Rs.in 000's) 102843 114429 11.27
13 Total Business Per Branch (Rs.in 000's) 422121 487984 15.60
14 Average Business Per Employee (Rs.in 000's) 93375 102597 9.88
15 Net Profit Per Employee (Rs.in 000's) 352 1869 430.85
16 Net Profit Per Branch (Rs.in 000's) 1446 7969 451.09
17 Provision Coverage Ratio 70.59 100 41.66
18 Average Return of Funds (Financial Return) 9.32 9.48 1.72
19 Average Cost of Funds (Financial Cost) 5.17 4.98 -3.68
20 Financial Margin (18-19) 4.15 4.50 8.43
21 Cost of Management (Transaction Cost) 1.47 1.47 0.00
22 Miscellaneous Income 1.07 1.47 37.38
23 Risk Cost 0.08 0.41 412.50
24 Net Margin (18+22)(-19+21+23) 3.67 4.09 11.44
25 Net Interest Income 10464465 12130408 15.92
26 Net Interest Margin (NIM) 4.36 4.73 8.49
27 Gross Rate of Return(GRR) 0.38 1.82 378.95
28 Other Income Ratio (Non Interest Income) as a % to Total Income 10.84 13.60 25.46
29 Growth In Business 14.18 15.60 10.01
30 Investment to Deposit Ratio 51.01 54.50 6.84
31 Borrowings to Advances Ratio 38.85 43.81 12.77
32 CASA Deposits to Total Deposits 41.46 39.77 -4.08
33 Cash to Deposits Ratio 0.93 0.56 -39.78
(Rs. in Crore)
Ratio Analysis
S.
No.Ratios
2018-
19(%)%
Change2019-
20(%)
1 Cost of Deposits 5.88 5.98 1.70
2 Cost of Borrowings 6.11 5.79 -5.24
3 Yield on Advances 11.35 11.55 1.76
4 Yield on Investments 7.47 7.85 5.09
5 Expenses Ratio (Cost to Income Ratio) 28.19 25.26 -10.39
6 CD Ratio 103.75 104.47 0.69
7 Interest Income as % to Working Funds 9.27 9.33 0.65
21
100%
Provision Coverage Ratio
FY 2020
539698
8791080
1304
1656
21622287
Reserves (Rs in Crore)
2905
The following table gives the position of Tier-I, Tier-II
Capital, Reserves and computation of CAR. (Rs in Crore)
Balance sheet size
The Balance Sheet of the Bank stood at Rs. 31276.20 Crore as st ston 31 March, 2020 compared to Rs. 26637.44 Crore on 31
March , 2019 recording a growth of Rs. 4638.76 Crore
Capital and Reserves
Authorized Capital:
Pursuant to The Regional Rural Banks (Amendment Act)
2015,Raised the Authorized Capital of the Bank from 5,00,000
Equity Shares of Rs. 100/- each aggregating to Rs. 5 Crore to
200,00,00,000 Equity Shares of Rs. 10/- each aggregating to
Rs. 2000 Crore.
Paid up Capital:
The 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.
Reserves
The Reserves increased by 27% (Rs. 618 Crore) to Rs. 2905
Crore in FY 2020 as against Rs. 2287 Crore recorded in previous
year.
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
Net worth
Net worth of the Bank stood at Rs. 2999 Crore with a growth of
Rs. 618 Crore (26 %) over previous FY's figure of Rs. 2381
Crore.
The Capital Adequacy Ratio of the Bank is at 16.15 % as on
March 2020 up 65 bps YoY (15.5% as on March 2019) which is
well above the level of minimum 9% stipulated for RRB’S by Dr.
K.C. Chakravarthi Committee.
Capital 2018-19 2019-20
1 Tier-I
a. Paid up Capital 94.08 94.08
b. Share Capital Deposit 0 0
c. Statutory Reserves &
Surplus 455.49 579.00
d. Capital Reserves 0.01 11.10
e. Other Reserves 14.31 14.31
f. Spl. Reserve u/s 36(1)(Viii)
of Income Tax Act 1961 14.47 39.01
g. Surplus in P&L 1786.5 2245.53
Total reserves (b+c+d+e+
f+g) 2270.78 2888.96
Total Tier-I Capital 2364.9 2983.04
2 Tier-II
a. Undisclosed Reserves
b. Revaluation Reserves
c. General Provisions &
Reserves 49.09 59.65
d. Investment fluctuations
Reserves / Fund 15.99 15.99
Total Tier-II Capital 65.08 75.64
Grand Total (Tier I + Tier II) 2429.9 3058.68
3. a. Adjusted value of funded
risk assets i.e., balance
sheet items 15653.69 18902.77
b. Adjusted value of non-
funded risk assets i.e.,
balance sheet items 21.47 39.52
c. a+b 15675.2 18942.29
d. Percentage of Capital
(Tier-I + Tier II) to Risk
Weighted Assets 15.5 16.15
we are with you!Annual Report 2019-20
FY 2019 FY 2020
15
.50
% 16
.15
%
Capital Adequacy Ratio
22
Borrowings
The aggregate borrowings of the Bank as on 31st March 2020
stood at Rs. 8466 crore whereas it was Rs. 6471 Crore as on
31st March 2019.
(Rs. in Crore)
Institution 2018-19 2019-20 �VarianceS.No
The Bank has availed refinance against Crop loan
disbursements from NABARD @ 20%. Refinance against SHG
disbursements and Rural Housing was provided by NABARD
and NHB respectively @ 100%.
TREASURY OPERATIONS
The Treasury Department at Head Office performs the
Treasury Operations of the Bank. It is responsible for
deployment of surplus funds available in the markets to
achieve desired risk-adjusted returns. The treasury dept is
responsible for managing the funds position of the Bank and
ensuring safety, liquidity and optimal yield on these funds. It
maintains Statutory Reserve Requirements and invests in
corporate bonds, commercial papers, equity, mutual funds,
etc. as a part of the fund management operations.
Investments
In the year under review SLR investments decreased from
Rs. 5317.06 Crore to Rs. 3753.85 Crore. However, total
investments increased from Rs. 9879.67 Crore to Rs. 11970.07
Crore registering a growth rate of 21.07%.
Deposits
The deposits grew by 15.20% (Rs. 2439.72 Crore) to
Rs. 18495.69 Crore from the previous year's level of
Rs. 16055.95 Crore.
Deposit Mix
CASA deposits grew by Rs. 699.66 Crore at 10.51 % to reach
Rs. 7355.77 Crore as against Rs. 6656.11 Crore as on
31.3.2019.
Time deposits of Bank has grown from Rs. 9399.84 Crore as of
March 2019 to Rs. 11139.92 Crore as of March, 2020,
registering a growth of Rs. 1740.08 Crore (18.51%).
CASA Deposits accounted for 39.77% of total deposits
(Rs. in Crore)
(Rs. in Crores)
Deposit mix 2018-19 2019-20
Current A/c 186.14 159.84
Growth 64.34 26.30
Growth % age 52.82 -14.13
Savings Bank A/c 6469.97 7195.93
Growth 549.83 725.96
Growth %age 9.29 11.22
Total CASA 6656.11 7355.77
Growth 614.17 699.66
Growth %age 10.17 10.51
CASA Ratio 41.46 39.77
Term Deposits 9399.84 11139.92
Growth 1108.15 1740.08
Growth %age 13.36 15.62
Total deposits 16055.95 18495.69
Growth 1722.41 2439.73
Growth % Age 12.02 15.20
Investments 2018-19 2019-20
SLR 5317.06 3753.85
Growth -446.80 -1563.21
Growth % age -7.75 29.40
Non SLR 4562.61 8216.22
Growth -1100.90 3646.17
Growth % age -19.44 79.78
Total Investments 9879.67 11970.07
Growth -1547.70 2082.96
Growth % age -13.54 21.07
Though average investments decreased, income on
investments increased.
1 NABARD 6376.08 7066.31 690.23
2 SBI & HDFC 2.13 1346.42 1344.29
3 NHB 72.80 53.14 -19.66
4 MUDRA 20.00 0 -20.00
Total 6471.01 8465.87 1994.86
we are with you!Annual Report 2019-20
Deposits
2017-18
2018-19
2019-20
6041.948291.69
14333.63
6656.119399.84
16055.95
7355.76811139.92
18495.69
Total Deposits Term Deposits Total CASA
23
(Rs. in Crore)
(Rs. in Crore)
Inauguration of Indrakannu Branch New Premises in Sangareddy Region
by Chairman Sri. K. Praveen Kumar
Investment Policy:
The Investment Policy of the Bank was formulated in 2006 and
the same was reviewed / revised and approved by the Board
from time to time, conforming to the RBI guidelines.
SLR Investments
In terms of Section 24 of the BR Act 1949, the Bank has
maintained investments in the avenues laid down in the Policy,
to fulfil 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
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.
CRR and SLR
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. 530.75 Crore in CRR and Rs. 3868.93
Crore in SLR as on 31.03.2020.
Inauguration of New premises of Regional Office of Mahaboobnagar by
Chairman Sri. K. Praveen Kumar
Inauguration of New premises of our Tellapur Branch in Ashoknagar Region by Chairman Sri. K. Praveen Kumar, followed by customer meet
we are with you!Annual Report 2019-20
24
Inauguration of New premises of our Narsipatnam Branch in Visakhapatnam Region By Chairman Shri K. Praveen Kumar
Farmers Felicitation Program – Best farmers have been Felicitated by General Manager Shri Ch. Sree Rama Somayaji in Mahabubnagar on
th26 January 2020
Staff Interaction Program held at Srikakulam by
Chairman Shri K. Praveen Kumar
CORE OPERATIONSCredit Portfolio
Retail Lending - Home Loans
During FY 2020, Bank's focus continued on increasing the
share of retail lending to Housing sector, Education Loans,
Personal Gold Loans & MSME. Home loans outstanding has
been increased from Rs. 1891.87 Crore in FY 2019 to
Rs. 2646.31 Crore in FY 2020 recording a healthy growth of
40%.Bank has taken up capacity building of the operating staff
to make them better acquainted with retail lending and to
diversify the credit portfolio. Suitable staff was posted in all
Asset Management Hubs to give more fillip to retail business
especially to Home loan business.
Bank is an active member in financing under Government's
flagship scheme, Pradhan Mantri Awas Yojana (PMAY) and
has claimed subsidy from NHB (Nodal Bank) for more than
2140 loan accounts amounting to Rs. 49 Crore (Approx.)
during the year. Bank is having more than 18,000 Housing loan
customers and accounts, and adding many more every day.
The Home loan business now constitutes 13.69% of Banks
total advances. NPAs share in Home loan portfolio is just
0.21% (Rs. 5.74 Crore) which signifies the quality of Home
loan finance. As we move forward, our focus remains on
improving the share of Home loans to total advances.
Gold Loans
In addition to increase in Home loan portfolio, Banks
coordinated efforts to improve share of Gold loans in total
advances portfolio yielded positive results. Bank has
launched 2 new Gold loan schemes during the course of the
year viz., Multipurpose Agri Gold loan & Privilege personal
Gold loans which helped Bank in doubling the Gold loan
business during the period under review compared to
previous year.
Gold loan business levels have increased from Rs. 485.27
crore in FY 2019 to Rs. 953.62 Crore in FY 2020 registering a
growth rate of 96.50%.
The Comparative performance under retail lending during last
2 years is tabulated below: (Rupees in Crore)
S.
No Amt
O/s Mar 2018-19
Segments
O/s Mar 2019-20
No.of
A/csAmt
No.of
A/cs
1 Housing Loans 14741 1891.87 18386 2646.31
2 Mortgage Loans 3579 223.01 3623 227.47
3 Education Loans 1936 60.62 1600 54.11
4 Demand Loans 15783 216.50 13674 222.62
5 NFS - Term Loan /MSME 116010 1357.48 126215 1515.39
6 Personal Loans 8412 251.39 7273 241.74
7 Personal Gold Loans 95040 485.27 144660 953.62
Total 255501 4486.14 315431 5861.26
we are with you!Annual Report 2019-20
25
Asset Management Hubs and Rasmecccs
In order to centralise sanction of laons and to improve quality
of loan processing, Bank has opened 7 more Asset
Management Hubs at Patancheruvu, Dabagardens, Kodada,
Bhongiri, Ranasthalam, Chodavaram & Kashibugga during
FY2020 in addition to existing 19 Hubs & 2 RASMECC, taking
total number of Hubs to 28.
With the objective to further strengthening the functioning of
AMHs/RASMECC, controlling structure has been changed. In
addition to this, in order to give more impetus to quality &
focussed SHG lending, Bank has vested discretionary powers
for sanction of SHG loans of above 5 lakhs to Hubs/RASMECC
withdrawing sanctioning powers from Branches.
The Asset Management Hub processes Housing loans,
General Purpose Asset Backed Loans, CRE-RH Loans, MSME
loans& Agriculture Loans (backed by collateral security)
sourced from spoke branches as well as directly received from
the customers.
During FY 2019-2020, AMHs/RASMECC have collectively
sanctioned 44,201 loans aggregating to an amount of
Rs. 4389.37 Crore compared to 2835 loan account with an
amount of Rs. 485.04 sanctioned during FY 2018-2019
Inauguration of Asset Management HUB at our Daba gardens branch
in Visakhapatnam Region on 20.08.2019. By Chairman
Shri. K. Praveen Kumar
Function hall financed by our Miryalaguda Branch, Nalgonda,Regional Office
Rice mill financed by our Maddur Branch, Sangareddy, Regional Office
we are with you!Annual Report 2019-20
26
Housing Loans Financed by RASMECC Ahoknagar
Hotel financed by our Siddipet Branch , Sangareddy, Regional Office
KCC, SHG & Other Loans
Credit to Agriculture
Total credit to agriculture and allied activities including
agriculture-portion of SHG lending, stood at Rs. 13154.83
Crore as on 31.3.2020 as against Rs. 11259.36 Crore recorded
during the previous year with a growth of Rs. 1895.47 Crore
(@ 16.83%). Total number of Bank's borrowers in Agriculture
sector has increased from 1102918 to 1193382 in FY 2020.
More than 75 % of the credit to SHG finance is also towards
agricultural operations.
The Bank has disbursed Rs. 7536.95 crore to agriculture during
the year as against the previous year's disbursal of Rs. 6316.74
Crore registering a healthy growth of Rs. 1220.21 Crore.
Total credit to agriculture and allied activities constitutes
63.86% of the total credit portfolio as on 31.3.2020 vis-à-vis
61.62% as at the end of previous FY 2018-19.
Crop loans under revised Kisan Credit Card System
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 introduced 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 their
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 968858 KCCs as on March, 2020 with an
outstanding credit of Rs. 7854.48 Crore as against previous FY
level of 920115 KCCs for Rs. 6759.51 Crore.
During the year 2019-20, we have disbursed an amount of
Rs. 4081.17 Crore to 782267 KCC card holders as against
Rs. 3302.53 Crore to 590262 card holders during the year
2018-19. Instructions were issued to all the branches to cover
all KCC holders up to the age of 70 under Personal Accident
Insurance Scheme(PAIS) 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 are with you!Annual Report 2019-20
27
Car servicing unit financed by our Kodad X Road Branch, Khammam,Regional Office
House Apartments financed by our Siddipet Branch, Sangareddy, Regional Office
Crop Loans - VaddileniRunalu / PavalaVaddi
Government of united Andhra Pradesh had implemented
“Vaddileni Runalu/ Pavalavaddi” scheme i.e., reimbursement
of interest subvention and incentive subvention for prompt
payers of crop loan borrowers from Rabi 2011-12. Under the
VLR Scheme, farmers need not to pay the interest portion. The
scheme has been in existence and continued by both the
States of Telangana and Andhra Pradesh
Interest Subvention
As per Government of India guidelines, Bank is implementing
7% interest rate to all the crop loan borrowers up to Rs. 3.00
lakhs and accordingly claimed an amount of Rs. 57,09,68,809/-
towards 2% interest subvention from the GOI during the year
2019-20. As per the directives of Government of India, we had
passed on the benefit relating to interest subvention incentive
to the extent of Rs. 31,11,41,470/- to the prompt repayers and
claim submitted accordingly.
Conducting of GramaSabhas
All branches have conducted GramaSabhas for the customers,
mainly for the purpose of educating the farmers in timely
renewal of the crop loans to avail the benefit of interest
subvention from Government of India. To ensure maximum
renewals/recovery, GramaSabhas were conducted in the
evenings and mornings and sensitized farmers to renew their
crop loans. Apart from operating staff at Branches,
functionaries from ROs, Head Office right from Messenger to
Chairman have participated in the GramaSabhas, which
yielded very good results in successful renewal of crop loan
accounts and recovery of NPA's.
Tenant Farmers – Loan Eligibility Card Holders
We have financed to 4474 tenant farmers under the Loan
Eligibility Cards Scheme with a credit outstanding of Rs. 11.99
Crore during the year 2019-20. AP Land Licensed Cultivators
Ordinance aims at ensuring loan and other benefits to tenant
farmers, by means of Loan Eligibility Cards.
Joint Liability Groups (JLGs)
In order to develop effective credit products for small /
marginal / tenant farmers, oral lessees and share croppers, as
also entrepreneurs engaged in various non-farm activities, the
scheme for Joint Liability Groups was launched by NABARD.
During the year 1266 groups were financed amounting
Rs. 10.41 Crore and outstanding JLGs finance now stands at
5558 amounting to Rs. 64.18 Crore as on March 31, 2020.
SHG Bank Linkage Program at Narsipatnam, Visakhapatnam, cheque for Rs. 10 crore handed over to SHG Women by Narsipatnam MLA Shri Uma Shankar Ganesh and Chairman Shri K. Praveen Kumar.
Customer service Meet at Srikakulam, attended by Shri J.Nivas, Collector,Srikakulam and Shri. K.Praveen Kumar, Chairman
Self Help Groups
Our Bank has crossed one more milestone of 2,00,000 SHG
groups during the FY 2019-20 and one of the leading Bank
under SHG Finance, we have financed to 204569 Self Help
Groups (covering about 24.04 lakh rural women) with an
outstanding portfolio of Rs. 6402.39 Crore as on 31.3.2020 as
against previous year's level of 194871 Groups with
outstanding credit of Rs. 5857.85 Crore. The total loans
outstanding under SHG segment has increased by Rs. 544.54
Crore at a growth rate of 9.29% during the year 2019-20
against previous year growth of Rs. 273.83 Crore (@ 4.90%).
The Bank has disbursed Rs. 4011.07crore to 172084 Groups
during the year.
The Bank has highest number of Self Help Groups linked to
Bank and loan amount outstanding, among all RRBs in the
country.
In order to further strengthen our SHG base and to improve
income levels of SHG members Bank has launched a new
we are with you!Annual Report 2019-20
28
NRLM/NULM / DEENDAYAL ANTYODAYA YOJANA (DAY)
Interest Subvention Scheme
Our Bank has been implementing NRLM Scheme as per the
guidelines issued by NABARD vide their letter No 249/MCID-
LS/2013-14 dated 26.11.2013.
NRLM set out with an agenda to cover 7 crore rural poor
households, across 600 districts, 6000 blocks, 2.5 lakh Gram
Panchayat and 6 lakh villages in the country through self-
managed Self Help Groups (SHGs) and federated institutions
and support them for livelihoods collectives in a period of 8-
10 years.
In addition, the poor would be facilitated to achieve increased
access to rights, entitlements and public services, diversified
risk and better social indicators of empowerment. DAY-NRLM
believes in harnessing the innate capabilities of the poor and
complements them with capacities (information, knowledge,
skills, tools, finance and collectivization) to participate in the
growing economy of the country.
NULM aim at providing shelters equipped with essential
services to the urban homeless in a phased manner. In
addition, the mission would also address livelihood concerns
of the urban street vendors by facilitating access to suitable
spaces, institutional credit, social security and skills to the
urban street vendors for accessing emerging market
opportunities.
In November 2015, the program was renamed as Deendayal
Antayodaya Yojana (DAY).
Under the NRLM 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 250 backward districts all over
the country under Category-I, of which we have six districts in
our not i f ied area namely Waranga l , Khammam,
Mahabubnagar (erstwhile districts in Telangana state) and
Srikakulam, Vizianagaram, Visakhapatnam in Andhra
Pradesh.
All such Women SHGs in the six districts have been extended
credit at 7% rate of interest upto Rs.3 lakhs and Government
will reimburse to the extent of difference between 7% and
actual rate of interest (12.50%) subject to a maximum of
5.50%.
Apart from this, prompt paying SHGs will be provided an
additional 3% subvention amount as incentive. SERP (Society
for Elimination of Rural Poverty) would credit the remaining
4% interest for prompt repayer sreducing 'ZERO” interest
burden to the groups. We have claimed an interest
subvention @5.50% to the tune of Rs. 134,89,48,744/- and
3% prompt repayment incentive Rs. 62,99,34,913/- during
the year 2019-20.
we are with you!Annual Report 2019-20
29
product “Elite SHG” during the FY 2020, which encourages
prompt paying groups to go for a higher limit of upto 10 lakh
(collateral free) from the existing 7.5 lakh limit. This new
product has the potential to have a substantial impact on the
rural economy.
SHG Loan disbursement of Rs 55.44 Crore for 200 SHGs at CustomerOutreach programme in Srikakulam
Our Bank has participated in the Deccan Haat 2020 organised byNABARD, TSRO, Hyderabad. Shri S. K. Joshi Chief Secretary Govt. of Telangana Visting Corporate stall of our Bank
We have two districts among the Category-II districts (other
than the above 250 districts) under NRLM namely Nalgonda
and Medak in Telangana State. 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 repayers through e-transfer to the
SHGs accounts under the Scheme for Category-II districts.
Agriculture investment credit
Bank has an Agriculture investment credit portfolio of
Rs. 690.63 Crore as on (282.20 Crore as on st31 March 2020
31st March 2019). "The objective of doubling farm income by
2022 can be achieved by providing an incentive to agri. term
loans for investment purpose through an enabling mechanism
of either interest subvention or a credit guarantee fund," SBI
said in its research report Eco wrap.
To support the Governments efforts in doubling farmers'
income, Bank has launched few Agriculture investment
products during the course of year aimed at increasing the
income levels of farmers and rural households.
a) Dairy Vikas Loan (Tie Up): With an objective to scale up
regular income of farmers Bank has launched new loan
product “Dairy Vikas Loan scheme” by making tie up
arrangements with Milk procuring companies such as
Vijaya Dairy, NSR Dairy, Heritage foods etc. In the process
the income of farmers will be doubled and they can also
increase the cattle strength in future once they establish
good repayment track record with bank.
Bank has financed to more than 800 dairy farmers and
disbursed an amount to the tune of Rs. 6 Crore under this
scheme during the FY 2020.
b) ATL Vikas Green(Tie-up): Bank has launched this new
product ATL Vikas Green under tie-up arrangement with
Kheyti, an organisation helping farmers for construction
of Green House.
Kheyti was started in 2015 with the mission of giving
small farmers a steady and dependable income through
market driven technology solutions. After seeing first-
hand the huge production risk that small farmers are
exposed to, they have conceptualised the “Greenhouse-
in-a-Box”, an affordable modular greenhouse bundled
with services.
Bank has disbursed more than 2 crore under this scheme.
In addition to this products Bank has also launched APGVB
Crop encash loan product – to provide short term loan to
farmers against the security of fungible farm produce stored
at accredited/ non-accredited ware houses aimed at enabling
the farmers to avoid post-harvest distress sale.
Bank loan products banner being viewed by general public inKhammam SP Stadium
Priority Sector Lending
In terms of RBI Circular No: FIDD.CO.Plan.2/04.09.01/2016-
17 dated 07.07.2016, w.e.f 01.01.2016 75 percent 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 and (h) Others (SHG/JLG, distressed
persons, Loans to State Sponsored Organizations 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.
The Bank's priority sector lending constitutes 89.93% of total
advances. In absolute terms, total priority sector lending
stood at Rs. 17376.53 Crore as on 31.03.2020 as against
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
we are with you!Annual Report 2019-20
30
Rs. 14971.39 Crore as on 31.03.2019. There is a growth of
Rs. 2405.14 Crore @ 16.06%. Lending to weaker sections
constitutes 66.60%. In absolute terms weaker sections loans
stood at Rs. 12869.16 Crore as against previous FY's level of
Rs. 12109.51 Crore with an increase 6.27% (Rs. 759.65 Crore).
S.
NoNo.of
A/cs
2018-19 2019-20
No.of
A/cs O/s O/s
Inter Bank Participation Certificates (IBPC)
In accordance with the RBI guidelines, the bank has entered
into Risk sharing participation Contract with HDFC LTD under
Inter Bank Participation Certificate (IBPC) and issued priority
sector advances to the extent of Rs. 590.00 Crore on
28.06.2019 for a period of 180 days as cash pay-out and
maturity period expired on 24.12.2019. During this financial
year the Bank issued priority sector advances to the extent of
Rs. 1100.00 Crore on 24.09.2019 for the period of 180 days as
cash pay-out and maturity period expired on 21.03.2020 and
Rs. 590.00 Crore on 26.12.2019 for the period of 180 days as
cash pay-out and maturity period expired on 23.06.2020.
Further, again during the year the bank issued priority sector
advances to the extent of Rs. 1300.00 Crore on 24.03.2020 for
the period of 180 days as cash pay-out and matures on
20.09.2020.
Priority Sector Lending Certificates (PSLC)
As per RBI master circular No. FIDD.CO. Plan. BC 23/04.09.01
/2015-16 dated 07.04.2016 of PSLC, trading on e-Kuber portal
is an on-going process. All traded PSLCs will expire by March
31st and will not be valid beyond the reporting date (March
31st), irrespective of the date it was first sold.
According to the SBI instructions on trading in "Priority Sector
Lending Certificates" through CBS e-Kuber portal, we have
started trading on e Kuber portal for the financial 2019-20
from 14.06.2019. Our Bank has earned substantial profit of
Rs. 112.13 Crore in FY 2020 compared to Rs. 31.85 Crore
earned during previous year.
Government Sponsored Schemes
The Bank has participated in Govt Sponsored Schemes
actively during the year and as on 31.3.2020, the total finance
extended under various Schemes and loan out standings in
various schemes are as under.
(Rupees in Crore)
(Rs. in Lakhs)
Scheme
Grounding Position of Government Sponsored Schemes
as on 31.03.2020 vis-a-vis achivement
Outstanding position of Government Sponsored Schemesas on 31.03.2020.
(Rs in Lakhs)
Scheme
Outstandingas on 31.3.2020
Disbursement from01.04.19 to 31.03.2020
No. ofUnits
Amt. No. ofUnits
Amt.
1 Weaker Sections 1091638 12109.51 1179281 12869.16
2 Women borrowers 509624 6610.10 612272 7659.82
3 Minorities 87142 992.15 98152 1186.95
4 SCs/STs 306290 3610.98 315425 3815.67
Target Achievement
No. of Amt. No. of Units Units Amt.
SCAP 7150 8155 6251 7135.26
BCAP 4660 3590 4179 3157.61
STAP 1975 861 1624 697.10
Minorities 1086 678 979 620.40
Weavers 825 400 642 292.20
Pasukranthi/PPK 0 0 0 0.00
MEPMA 500 1255 306 496.17
PHC 640 475 483 349.03
Others 2850 3000 2496 2216.64
Total 19686 18414 16960 14964.41
SGSY 1281 1364.83 0 0
RYS 636 1492.37 0 0
SCAP 34213 10698.91 6251 7135.26
BCAP 28066 8130.82 4179 3157.61
STAP 29787 6393.02 1624 697.10
Minorities 5660 5487.21 979 620.40
Weavers 2379 1815.61 642 292.20
VAMBAY/
INDIRAMMA 1326 771.31 0 0
KVIC 16 78.17 0 0
Pasukranthi/PPK 5439 4359.65 0 0
PMEGP 216 124.76 0 0
MEPMA 1680 503.23 306 496.17
PHC 903 506.32 483 349.03
Others 280 268.31 2496 2216.64
Total 111882 41994.52 16960 14964.41
we are with you!Annual Report 2019-20
31
Participation in State Credit Plans
The Bank's participation in State Credit Plans is as under:
S.No Target Achiev
ementTarget Achiev
ement
2018-19 2019-20
(Rs in Crore)
CSIS Scheme (Education Loans)
CSIS (Central Sector Interest Subsidy scheme) is a unique
scheme which pivots around the vision that no student
desiring to pursue higher education is denied of the
opportunity if he / she is financially poor. This scheme benefits
all categories of economically weaker students for pursuing
professional / technical courses in India only, and intends to
provide affordable higher education. The Scheme, envisages
uplifting the students from the grass-root level and increasing
the number of qualified technicians / professionals in the
nation. CSIS aims to check the existing geographical
imbalance with regard to Gross Enrolment Ratio (GER) in
Higher Educational Institutions.
The scheme is applicable to students belonging to
Economically Weaker Sections, i.e. students whose annual
gross parental income is up to Rs. 4.5 lakhs. Subsidy is
admissible only once either for undergraduate or post
graduate or integrated course.
Our bank has been claiming Interest subsidy under this
scheme for all the eligible students since 2009-10 on the CSIS
portal of Canara Bank (Nodal Bank) every year. All the claims
upto 2017-18 for all years have been settled to our bank.
For the FY 2018-19, we have claimed an amount of
Rs. 65,23,633.00/- in respect of 282 education loan accounts.
Further more we also received abroad education loan subsidy
amounting to Rs. 31,55,904.00/- for 2018-19.
Bank is also a registered entity under CERSAI – Central
Registry of Securitisation Asset Reconstruction and Security
Interest of India.
Credit flow to Micro and small enterprises under Credit
Guarantee Fund Trust for Micro & Small Enterprises
(CGTMSE)
In line with the objectives of the Government, Bank has
focussed on financing to Micro and small enterprises and
Bank has an outstanding portfolio of Rs. 118 Crore under stCGTMSE as on 31 March,2020.
(Rs. in Lakhs)
Credit Information Companies
Our Bank is a member of Trans Union CIBIL (Credit
Information Bureau (India) Limited) Equifax Credit
Information Services Private Limited, Experian Credit
Information Company of India Private Limited and CRIF High
Mark Credit Information Services Private Limited.
Our Bank has been uploading the data regularly and all our
Regional Offices and Branches are accessing the credit history
of the loan applicants while making credit decisions.
Regional Manager & SM Advances Khammam participated in SHG NPA recovery drive of Pedaveedu Branch. On 15th Nov 2019. Involving SERP / IKP staff, neighbouring branch staff in the drive.
Asset Quality – Management of Non-Performing Assets
The Non-Performing Assets have marginally increased by
Rs. 9.40 Crore from Rs. 189.10 Crore as on 31st March 2019 to
Rs. 198.50 Crore as on 31st March 2020. Gross NPAs as a
percentage to total advances has come down from 1.14% as
on 31.3.2019 to 1.03 % as on 31.3.2020. Net NPAs (as a %age
to Net advances) has come down from 0.34% to Nil. During
1 Crop Loans 4965.35 3602.53 5000 4081.17
2 Total Agr & allied activities 675.77 359.83 700 748.17
3 NFS 1351.81 853.65 600 986.74
4 OPS 5267.55 4607.95 4500 4062.16
5 Tot Priority Sector 12260.48 9423.96 10800 9878.24
Achievement % 76.86% 91.46%
Cumulative 2018-19 2019-20
No of A/Cs 876 15561
Amount 957.58 11799.14
we are with you!Annual Report 2019-20
32
the financial year Bank has made 100% provisions for all the
NPA accounts and accordingly Net NPA was made Nil from
Rs. 55.62 Crore. The NPAs have come down in all segments
except KCC and recalled debts.
The movement in NPAs during last two years is as under:
st stParticulars 31 March 2020 31 March 2019
Gross NPA 198.49 189.10
Gross NPA (%) 1.03 1.14
Net NPA 0 55.62
Net NPA (%) 0 0.34
Addition to NPAs 426.90 293.46
Recovery/ Upgradations 417.50 300
Write Offs 36.73 0.55
Recovery in Written off A/cs 3.96 6.44
Provision Coverage Ratio (%) 100 70.59
SARFAESI Act and Suit filing
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.
Performance under SARFAESI is as under: (Rs.in lakhs)
Particular
Demand Notices
Possession Notices issued
Possession taken
Auctioned
Regularized
A/cs
302
167
25
6
148
Amt
3050.71
1628.48
358.68
194.55
1478.62
Performance under Suit-filed cases is as under: (Rs. in lakhs)
Particulars
Suit filed
Decreed
EP Filed
Recovery after Filling suits
Cases
1746
970
337
155
Amt
3877.22
1851.27
942.24
279.61
Bank Adalat
We have introduced Bank Adalat scheme in line with
Lokadalat for quick disposal of overdue cases at Regional
Office level. Dates of conducting of Bank Adalat will be
advised by Head Office.
During the Year 2019-20 we have settled 2530 cases for an
amount of Rs. 688.08 lakhs.
Compromise settlements
Bank has recovered following amounts under compromise
settlement scheme: (Rs.in lakhs)
Compromise
No of A/Cs
Amount
2018-19
2099
1259.37
2019-20
972
971.99
As per asset classification, the classification of loans book is
as given below:
Asset
(Rs. in Crore)
O/s % O/s %
2018-19 2019-20
Standard 16469.31 98.86 19124.47 98.97
Sub Standard 49.54 0.30 81.39 0.42
Bad & Doubtful 121.62 0.73 116.21 0.60
Loss 7.94 0.11 0.90 0
Total NPAs 189.10 1.14 198.50 1.03
Total Advances 16658.41 100 19322.97 100
The following strategies were adopted to reduce / contain the
NPAs:
1. The Recovery & Risk Management department has been
continuously drawing various strategies for reduction of
NPAs and guiding the branches/Regional Offices under
the guidance of top Management.
we are with you!Annual Report 2019-20
33
1478.62
Provision Coverage Ratio
70
.59
%
85
.67
%
10
0.0
0 %
FY 2018 FY 2019 FY 2020
(Rs. in Crore)
2. All General Managers are regularly visiting the branches
in their allotted regions and reviewing the NPA position
and guiding for resolution.
3. More than Rs. 20.00 lakhs outstanding NPA accounts are
being monitored by Chairman personally.
4. Top 50 Loan accounts position is being placed before
Board in its every meeting and suggestions /
recommendations made by Board are being implemented.
5. As NPAs under SHG have registered increase, we have
advised the branches to ensure renewal of accounts
where the limits were expired on war footing basis and
recover the instalment amount duly utilizing the services
of VO leaders and VO wise lists.
6. Top 50 NPA accounts of each region are being reviewed by
respective GMs at frequent intervals.
7. Top management has been conduct ing audio
conferences at frequent intervals with Regional
Managers, Manager (Adv.), Desk Officers (NPAM) and
high NPA branches and reviewing NPA position.
8. In the light of recent promises by political parties to waive
crop loans up to Rs. 2.00 lakhs, renewal of crop loans has
taken back seat. As such all our branches are conducting
Gramasabhas in their area of operation. We have advised
to conduct at least four such Gramasabhas by each
branch for renewal of crop loans and SHGs.
9. Chronic NPA branches were allotted to HO officials for
monitoring and reduction NPAs up to March 2020.
10. Conducted auction for Gold ornaments pertaining to
Personal Gold Loans which became overdue, at common
date at quarterly intervals.
In addition, the Bank strengthened its stressed assets
management by revamping its NPA management
Dashboard to track daily additions / Upgradations &
launched a in house developed suit file web portal for
automation of entire process involved in filing suits for
effective monitoring of Suit file Accounts by Branches and
controllers. Further, the Bank is in the process of
developing an in house SARFAESI web portal for effective
monitoring of SARFAESI NPA accounts.
Internal Control System – Inspection & Audit (I&A)
The I&A Department, headed by a General Manager, works under the guidance and supervision of the Audit Committee of the Board & all activities of the Bank are subjected to internal audit function, which comprises of different types of audits namely (a) Risk Focused Internal Audit (RFIA) (b) Snap Audit (c) Concurrent Audit and (d) Income Audit (e) Special Audit (f) Compliance Audit (g) IS Audit.
Keeping pace with rapid digitisation, department is also actively contemplating to introduce new technological initiatives for providing enhanced efficiency and effectiveness in audit process.
Risk Focused Internal Audit (RFIA)
The Risk Focused Internal Audit Report System has been implemented in the Bank from July 2009, as suggested by our Sponsor Bank, State Bank of India. In order to strengthen the criteria to qualify for better ratings, Bank has raised the benchmark for the Inspection ratings with effect from 01.09.2011.
For further strengthening of the audit system the new format of RFIA has been introduced in the Bank w.e.f.01.10.2016 as advised by our Sponsored Bank, with the following rating system parameter-wise marks.
Revised Rating Range of Marks
Well Controlled - A+ >=850
Adequately Controlled - A >700 and <=850
Moderately Controlled - B >600 and <=699
Unsatisfactorily Controlled - C <600
The marks allotted under each parameter have also been revised as under:
S. Parameter Revised N Format -Marks
1 Business Development 100
2 Credit Risk Management 450
3 Operational Risk Management 410
4 External Compliance 30
5 Self-Audit 10
Revised reporting format of Risk Focused Internal Audit (RFIA)
has been implemented during the year, incorporating IS & IT
Risk scrutiny in it.
Branches with 'Well Controlled – A+' and 'Adequately
Controlled - A' ratings are audited within 18 months from the
previous audit date while the Branches with 'Moderately
we are with you!Annual Report 2019-20
34
Controlled - B' and 'Unsatisfactorily Controlled - C' rated
branches are audited within a year.
During the year 516 branches have fallen due for Audit and
514 branches have been audited. Rating acquired by 514
branches is as under:
Rating Out of 514 Branches
audited during 2019-20
Well Controlled - A+ 358
Adequately Controlled - A 156
Moderately Controlled - B -
Unsatisfactorily Controlled - C -
Total 514
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.
Due to sustained efforts made by the department, the
percentage of Well Controlled branches (A+) have increased
from 42.6% recorded during previous FY to 69.6% in FY 2020.
Out of 607 RFIA Reports which have fallen due for closure
during the year, all the Reports have been dealt with and
closed.
Snap Audit
The schedule of Snap Audits has been advised to ROs on
monthly basis to depute Officials from Region to other Region
to carry out the Snap Audit of Branches to have effective audit
of the Branches. 907 Snap Audits have been conducted during
the year 2019-20.
Concurrent Audit
As a 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 200
branches with the help of 38 Auditors. We propose to empanel
the retired Bank Officials to cover at least 50% of the Credit
and other exposures of the Bank under Concurrent Audit
System 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, security
aspects, verification of Assets Quality etc.
Apart from this, the following audits have also been carried
out to enhance the efficiency levels:
Income Audit
Income Leakage Audit has been conducted at 386 branches
and recovered Rs. 123 lakhs.
Special Audit
A special audit was conducted in 13 Branches for Advance
limit of Rs. 50 lakhs and above covering 78 loan accounts,
Special Assets Verification for 3 Branches in Khammam Region
were also conducted.
Compliance Audit
Compliance Audit was conducted at 53 branches during this
year as per the schedule.
IS Audit
IS Audit has been conducted at 11 Regional Offices and Head
Office including IT Cell with the help of CISA qualified retired
SBI official as per the instructions of Corporate Centre, State
Bank of India, Mumbai.
Audit of other Administrative Units:
All the eleven Regional Offices and other departments i.e.
Accounts, SLC, Stationery cell, HRMS have also been audited.
Management Audit
The Management Audit of our Bank has been conducted by
our Sponsor Bank, SBI. The audit has been concluded on
03.12.2019 and final compliance on the Auditor's key
observations/findings/remarks has been submitted to
Corporate Centre, SBI, Mumbai.
NABARD Inspection under Section 35(6) of the Banking
Regulation Act 1949
The NABARD Audit has been conducted as on 31.03.2019
during 22.07.2019 to 09.08.2019 and the Report was received
on 17.12.2019 with a Rating awarded 'A'. Compliance
submitted on 14.02.2020 and further Compliance submitted
on 18.04.2020.
Financial Inclusion
Continuing its trend, the Bank has actively taken part in
various financial inclusion activities during the year, thereby
increasing the spread of digital banking channels in the areas
which do not have any banking presence.
To enhance the reach and add convenience to the customers,
we are with you!Annual Report 2019-20
35
the bank has increased its Bank Mitras from 1867 in FY 2019 to
2056 Bank Mithras as on 31.03.2020. Of which 1867 Bank
Mitras are operating in Sub Service Areas (SSA) and 189 Bank
Mithras in Non SSA equipped with micro ATMs. They are
operating in 4444 villages in the erstwhile districts of
Khammam, Mahabubnagar, Nalgonda, Medak and Warangal
in Telangana State and Vishakhapatnam, Vizianagaram and
Srikakulam districts in Andhra Pradesh State, which do not
have any formal banking outlet. Out of 4444 villages, 825
villages are with population of 2000 and above and remaining
3619 villages with a population less than 2000.These Bank
Mithras have become an extended arm for implementation of
our Banks Financial Inclusion policy in tune with Government
of India guidelines. These Bank Mitras provide banking
Training programme for Bank Mitras and Debt Recovery Agents
at our SLC, Warangal
facilities to the people at their door steps by leveraging
technology.
The Bank Mitras use the hand held Micro ATM devices to carry
out the banking transactions in real time. The following
banking transactions are enabled at Bank Mitra Points:
a. Cash withdrawal and deposit
b. Receipt of loan instalments
c. AEPS transactions both Onus and Off us
d. RuPay Debit card transactions both Onus and Off us
e. Aadhar Seeding facility.
f. Facility of mobile number seeding to bank account.
Awarness programme conducted for Bank Mitras by Bank at Siddipet
we are with you!Annual Report 2019-20
36
Door to Door CASA Campaign by Ontimamidi Branch Staff
The entire Financial Inclusion (FI) operations at BCAs work on
the principle of Biometric verification of the beneficiaries
through 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.
The following is the total Bank Mitra Transaction and share of
transactions (%) performed at Bank Mitras when compared
with the total bank transactions
S.No Particular 2018-19 2019-20
No. of Bank Mitra transactions almost doubled during the FY
increasing from 59.47 lakhs (involving an amount of
Rs. 1820.65 Crore) to 109.17 lakhs (involving Rs. 4903.39
Crore) as on 31.3.2020 at a growth rate of 83.57%.
As at the end of the FY 2019-20, no. of SB Accounts opened
and maintained by Bank Mitras is 1066183 with a CASA
balance of Rs. 212.00 Crore compared to 911417 and balance
of Rs. 148.68 Crore as on 31.3.2019). No. of RD Accounts
opened and maintained by Bank Mitras is 7061 (with a
balance of Rs. 3.89 Crore).
Balances in Bank Mithra accounts has increased from
Rs. 148.68 Crore in FY 2019 to Rs. 212.00 Crore in FY 2020
registering a healthy growth rate of 42.58% in Bank Mithra
CASA deposits.
The average balance in Bank Mitra Accounts has also
increased from Rs. 1529.19 per account to Rs. 1986.23 as on
31.3.2020.
Mobile ATM Demonstration Van
In order to promote Digital Financial literacy, NABARD from its
Financial Inclusion Fund (FIF) providing grant assistance for
demonstration of Banking Technology through Mobile van.
The main objectives of Mobile ATM- Demonstration Van are
i. Spreading Financial Literacy
ii. Demonstration of Various digital banking technologies
for Digital Financial Literacy
iii. Demonstration of micro ATM, ATM , POS and Rupay card
transactions.
iv. To increase the activation of Rupay cards, specifically
cards issued under PMJDY.
v. Demonstration of ATM transactions. Micro ATM usage
and precautions to be taken while doing ATM
transactions.
We have procured four new Mobile ATM demo vans during
the year, two each for Andhra Pradesh and Telangana states.
The vehicle moves across all the operational districts of our
Bank in Andhra Pradesh and Telangana states by prior
scheduling of one week to ten days for each district. Our FLC
counsellors have been given charge of handling the Mobile
ATMs during the tour and utilizing it for giving demonstrations
at the time of conducting Financial Literacy camps. We are
playing videos on Financial Literacy, Social Security schemes,
PMJDY through LED TV installed in vehicle for which people
are getting attracted towards the Mobile ATM and attending
the camps for getting awareness of usage of ATM vehicle. Our
Bank Mithra sits in the Mobile ATM during the tour of vehicle
in a village and there Bank Mithra performs transactions,
likewise we are utilizing it for giving wide publicity on Bank
Mithra services & our Bank products.
we are with you!Annual Report 2019-20
37
1 FI Transactions 4974087 6232546 (19.84%)
2 AEPS ON-Us 5260057 7716063 (24.56%)
3 AEPS Acquirer OFF Us 985163 1029358 (03.27%)
4 AEPS Issuer OFF Us 2415575 3499528 (11.14%)
5 RUPAY Card transactions 98209 288744 (0.91%)
New Mobile ATM van of the Bank
inauguration of Mobile ATM van by Honourable Collector & District Magistrate, Shri J.Nivas, also attended by AGM-DD NABARD & LDM Srikakulam.
Financial Inclusion – Social Security Schemes (PMJJBY,
PMSBY & APY)
Pradhan Mantri Jeevan JyotiBimaYojana (PMJJBY)
PMJJBY is a one-year life insurance scheme, backed by
Government of India, renewable from year to year, offering
coverage for death. People in the age group of 18 to 50 years
having a Bank account who give their consent to join / enable
auto-debit, are eligible. Aadhar would be the primary KYC for
the bank account. The life cover of Rs. 2 lakhs shall be for the
one year period stretching from 1st June to 31st May and will
be renewable. Risk coverage under this scheme is for
Rs. 2 Lakh in case of death of the insured, due to any reason.
The premium is Rs. 33O per annum which is to be auto-
debited in one instalment from the subscriber's Bank account
as per the option given by him on or before 31st May of each
annual coverage period under the scheme.
We have enrolled new 183671 customers under Pradhan
Mantri Jeevan Jyothi Bima Yojana during FY 2019-20, taking
the total accounts to 517662.
Financial Literacy Awareness camp at Cheruvupally, Nalgonda.
we are with you!Annual Report 2019-20
38
Pradhan Mantri Suraksha BimaYojana (PMSBY)
PMSBY is an accident insurance scheme and offers a one-year
accidental death and disability cover, which can be renewed
annually. The Scheme is available to people in the age group
18 to 70 years with a Bank account who give their consent to
join / enable auto-debit on or before 31st May for the
coverage period 1st June to 31st May on an annual renewal
basis. Aadhar would be the primary KYC for the Bank account.
The risk coverage under the scheme is Rs. 2 lakh for accidental
death and full disability and Rs. 1 lakh for partial disability. The
premium of Rs. 12 per annum is to be deducted from the
account holder's Bank account through 'auto-debit' facility in
one instalment.
We have enrolled new 239051 customers under Pradhan
Mantri Suraksha Bima Yojana during FY 2019-20, taking the
total to 972589 accounts.
Atal Pension Yojana (APY)
APY is a pension scheme for unorganised sector workers such
as personal maids, drivers, gardeners etc., launched in June
2015 by the GoI. APY aims to help these workers save money
for their old age while they are working and guarantees
returns post retirement. Under the APY, there is guaranteed
minimum monthly pension for the subscribers ranging
between Rs. 1000 and Rs. 5000 per month, depending on the
entry age and monthly contribution.
Aadhar will be the primary KYC and all Bank Account holders
aged between 18-40 years are eligible for enrolment.
Total of 88418 enrolments were mobilised under Atal Pension
Yojana (APY) for FY 2019-20 taking the total to 202631
accounts.Surpassing a landmark figure of 200000
enrolments. Average number of enrolments per branch
under APY scheme went up to 114.08 during FY 2019-20.
nd stWe stood 2 among all the RRBs in the country and 1 among
the SBI Sponsored RRBs
Felicitation of Best performing Bank Mitras on the occasion of Women’s day in Centurion University, Perlakamidi, Odissa on 08.03.2020, attendedby Chairman Shri K Praveen Kumar and General Manager Shri P. Pardhasardhi
Digital Financial Literacy Awareness Camps (dFLAPs)
Following the need of the hour and taking cues from RBI's
policies and initiatives, our Bank launched Digital Financial
Literacy Awareness Camps to create awareness among rural
people and encourage them to use Card technology, ATMs,
micro ATMs, PoS transactions, use Mobile Banking, Mobile
Wallets and to highlight the role of Bank Mitras engaged by the
Bank. Street shows have been deployed in the villages with
the above contents so as to attract the rural customers to
upgrade their financial and technical skills. 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. We have
conducted 8909 camps through branches
Financial Literacy Centres (FLCs): 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 Centre (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 Bank has posted
retired Bank staff to look after the affairs of FLCs as
counsellors. These FLCs are located at the district centres and
housed in the Regional Offices. The Financial Literacy
Counsellors have conducted 1603 Financial Literacy
Awareness Camps during the year.
we are with you!Annual Report 2019-20
39
Aadhar Enrolment and Updation Centres
Following the mandate from Government of India for all the
Banks to open Aadhar Enrolment and Updation Centres in at
least 10% of their Branch network, our Bank has initiated the
task of opening Aadhar Enrolment Centres at 76 locations to
extend the services of Aadhar enrolment and updation to the
public including our customers. Bank officials will assist in
enrolment process.148 officials have been identified to
supervise these Aadhar Enrolment Centres.
During the year, the Bank has activated all the 76 Aadhar
Enrolment and updation Centres. Customers can do new
enrolments at this centre in addition to getting modifications
to the exiting cards. For new enrolment, the Bank does not
charge any amount, while for demographic modifications such
as address, name, gender, date of birth etc., they need to pay
Rs. 50/- (incl GST) in the Branch.
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 mobilized a New Business
Premium (NBP) of Rs. 30.81 Crore and earned a commission of
Rs6.46 Crore during the FY 2019-20 vis-à-vis the NBP of
Rs. 32.08 Crore and commission of Rs. 5.54 Crore during the
year previous FY 2018-19.
SBI General Insurance
We have commenced SBI General Insurance Business during
the year 2015-16 as a Corporate Agent to market 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. The Bank mobilized a business
premium of Rs. 25.17 Crore during the year 2019-20 vis-à-vis
Rs. 19.34 Crore business premium during the previous FY
2018-19. The Bank earned a commission of Rs. 2.99 Crore for
the year 2019-20. vis-a-vis the commission of Rs. 92 Lakhs for
the year 2018-19.
SBI Mutual Funds and SBI Credit Cards.
We have entered into Corporate Agreement with SBI Mutual
Funds and SBI cards Pvt. Ltd as corporate agent for sourcing
Mutual funds and SBI Credit cards. Required software has
been developed by C-Edge and is incorporated in Bank Core
Banking Solution software. 78 Bank staff has cleared the
National Institute of Securities Management (NISM) course
on mobilization of mutual funds and emerged as Association
of Mutual Funds (AMFI) certified employee for sourcing
business under Mutual funds.
we are with you!Annual Report 2019-20
40
Atal Pension Yojana (APY) Felicitation Program At New Delhi
Chairman Shri K. Praveen Kumar received the Award at the APY Felicitation Program in Four Categories (1) Outperformers (FY2019-20) Best performing Nodal Officer. (2) Makers of Excellence 3.0 (FY 2019-20) Best performing Chairman RRB (3) APY Leadership Capital (FY 2019-20) Best Performing Chairman RRB(4) Challengers Cup (FY201920) Award of appreciation Best performing RRB Category Large
Liability Central Processing Centre (LCPC)
LCPC Ashoknagar has been functioning in our Bank since 28
October 2013. This is a centralized system of maintaining
account opening forms of Savings Bank Account, Current
Accounts opened in branches.
The system ensures that all the key parameters of the
accounts opened are accurately keyed into CBS after thorough
verification of the KYC compliance obtained by the branches.
The images attached to the account like photographs and
signature are scanned and uploaded into CBS. The account
opening forms are safely stored centrally at Document
Archival Centre (DAC) for future use.
The Bank has added 161 more Branches under the ambit of
LCPC during the year, taking the total number of Branches to st501 as on 31 March 2020. Now LCPC Ashoknagar is
processing Account Opening forms of all Branches in
Telangana State. A total of 8.78 lakh accounts have been
processed and logically concluded during the year, taking the
total number of processed accounts to 20.88 lakhs. 42% of the
total account opening forms were processed during current
year.
Keeping in view the increasing Business & growing customer
base , Bank has sought Boards approval for opening of one
more LCPC Centre in Andhra Region to cater to the needs of
Branches situated in Andhra Region (4 regions) & for setting up
a dedicated & independent Central Clearing Processing Centre
(CCPC) at Ashoknagar. Board has passed necessary resolution
& permitted the Bank to apply for license to both the centres.
Accordingly Bank has applied for RBI License for opening both
centres & license is expected soon.
Further LCPC is also nodal point for issuing of Personalized
Cheques to the customers & it has issued 59,639 personalized
cheque books against customers request during the FY2019-
20 taking the total number of cheque books issued to
1,49,654.
Technology and Digitization
Bank continued to effectively leverage technology to deliver
enhanced customer experience& Business efficiency. Bank
has made a number of improvements to the customer
experience in the app, making it more user-friendly& secure.
We have added new sections like Debit cards hot listing, Green
PIN solution etc., to our Mobile Banking app. Our Mobile
Banking app continues to remain as one of the highest rated
apps among all RRBs in the country. During FY 2020 Bank has
achieved significant momentum in adoption of Alternate
Delivery channels.
Inauguration of Passbook kiosk machine at our Ashoknagar Branchon 02.11.2019. By Chairman Shri K. Praveen Kumar
Alternate Delivery Channels:
v Mobile Banking registrations: During the year 1,31,923
customer registred in our Mobile Banking platform
v ATM Cards issued: During the year 4,60,724 new ATM
cards were issued.
v POS Machines: During the year 417 POS machines are
installed.
v ADC transactions: Banking transactions through
Alternate Delivery Channels has been on the rise
whereby reducing the footfalls considerably in the
branches, thereby resulting in more focus on marketing
Customer using our Mobile Banking App
we are with you!Annual Report 2019-20
41
and business development. Alternate Delivery Channels
also facilitate 24 x 7 banking services at their
convenience. The raising trend of ADC transactions is
shown in the following table:
SNo
Payment Mode
2018-19 2019-20
No oftransactions
per Day
Volumeper day
No oftransactions
per Day
Volumeper day
1 CTS 1466 6.03 925 6.85
2 RTGS 138 102.17 360 325.42
3 NEFT 7291 4.02 11743 5.66
4 IMPS 1601 0.23 2861 0.86
5 POS 6900 0.86 7225 1.54
6 ATM 28746 5.47 35140 7.82
7 AEPS 31007 3.18 51414 6.19
8 MOBILE BANKING 3284 2.28 5465 5.17
9 NACH(APBS&ACH) 24478 0.15 27675 0.16
1 0 UPI 2104 1.89 56786 5.52
IT initiatives during the year
Bank has also developed numerous IT tools during the course
of year to have better monitoring over the affairs in the Bank,
thereby focussing more on business development
parameters. Some of the key IT initiatives taken up during the
year are listed below:
1. Profit and Loss, Balance Sheet Calculation Automation:
A web portal has been developed to generate the balance
sheet and profit and loss position of the bank for any given
month. These reports are generated based on the data
available in CBS and by considering all other payables
receivables position of the bank. This portal also provides
schedule wise summary for effective control on assets and
liabilities of the bank.
2. Treasury Investment Receivables Automation: A web
portal has been developed to capture all the SLR and Non-SLR
investments of the bank and calculate the interest
receivables, amortization values and profit earned on the sale
of investments on daily basis. These values are required for
arriving at profit and loss position of the bank.
3. Staff Annual Appraisal Portal: This portal has been
developed to complete the annual appraisal process of all the
staff members online. This portal enables staff members to
submit their self-appraisal and mandatory learning details.
Reporting authorities can appraise the performance of staff
working under their control. It would also facilitate reviewing
authorities to review the staff appraisals submitted by
reporting authorities. Budgets and achievements of staff in
different parameters is also captured in this portal to award
the scoring accordingly.
4. Automation of Form-A generation: This utility has been
developed for automatic generation of Form-A return in
fortnight intervals, which is required to be submitted to
NABARD.
5. Suit File Accounts Dashboard: The process of filing of suits
involves lot of correspondence between branches and
controlling offices, which causes delay in tracking and
reaching logical end. To overcome this difficulty, a web portal
has been developed for automation of entire procedure
involved in filing suits. Using this branches and administrative
offices can monitor the suit file cases effectively for quick
resolution. Court wise, Advocate wise MIS can be generated
by branches and controllers.
6. Branch Visit Portal: A web portal has been developed to
facilitate the officials who are visiting branches to report the
observations noted in the branch then and there at the
branches. The branch staff has been provided access to the
portal to respond to the noted observations. This facility
would enable the controllers to view the irregularities noted
by the visiting official and updates of corrective measures
initiated by the branch staff thereafter. Visit report
compliances can be tracked till the closure. This portal also
provides visiting official wise data and number of visits done
by an official during the financial year.
7.Advances control return: This utility is an alternative to the
manual system of sending monthly advance returns for
control to Branch manager/Regional office. On button click
submission of the maker, all the loans advanced in the
previous month will be sent to control of the checker based on
their discretionary powers and scale of finance. The list of
accounts sanctioned in branch would be shown in the portal
on daily basis so that all the advances would be controlled
online. The HO/ROs will also be able to access the control
returns by logging in with their respective user Ids.
8. Vigilance Department Portal: A web portal has been
developed to host the circulars pertaining to vigilance and
whistle blower policies. A vigilance pledge and quiz program
has been conducted to the staff members on the occasion of
Vigilance Awareness Week (28.01.2019 to 02.11.2019). It has
been targeted to extend this portal to develop the tracking of
vigilance related cases in next phase.
09. Staff Learning Centre (SLC) Automation: A web based
system has been developed for registration of trainee
employees / officials at SLC and for allotting rooms while they
enter SLC for any training program. This system would also
facilitate to carry out entry test and exit test to the trainees
we are with you!Annual Report 2019-20
42
(Rs. in Crore)
and also to obtain feedback of training from them.
10. Charges Monitoring Portal: This utility has been
developed to provide the Branch-wise / RO-wise / Bank as a
whole Charges statement web-page for the purpose of
verification by branches and monitoring by controlling offices.
This acts as a monitoring tool which displays the comparison
of charges debited in the current financial year in a
branch/office and can be used to submit charges control
returns online replacing the earlier process of manual
submission.
Some other portals launched during the course of the year are
Advanced MIS Portal, Leased Agreement Tracking System,
Online E-Notices generation, Performance Ranking Portal,
NEFT-RTGS Transactions monitoring dashboard, Contract
Labour Attendance Management System & Dashboard to
verify Cash on hand vs retention limit.
Web based CBS (Server less CBS):New web based (JAVA) CBS is
tested and implemented successfully in 208 branches during
the financial year. This eliminated the need for local servers at
branches and enhanced security.
Active Directory Services (ADS): Migration of branches from
existing workgroup environment to Domain environment is
initiated during this year and 32 branches are successfully
migrated so far. This improves the IT security at branches and
opens scope of centralized management of client systems at
branches/ offices.
Computer Security Day was observed on 30.11.2019 and an
on-line quiz is conducted to all the staff. Hand-outs were
distributed among staff to create awareness on computer
security and safe working in computerized environment.
Pamphlets are also distributed to customers in bringing
awareness on computer security.
Apart from above, Bank also took various initiatives for
educating customers to prevent them from risk of being
targeted through cyber-attacks through various channels
such as SMS, Website, FLC camps etc.
As part of DRP/ BCP, the provision of secondary connectivity
(SIM based) is introduced this year. So far 430 branches are
equipped with the said secondary connectivity with auto
switch over facility from Primary to Secondary connectivity in
case of disruptions in Primary connectivity and vice versa. In
case of any unforeseen eventuality, Bank has Disaster
Recovery Plan /Business Continuity Plan in place and their
effectiveness is periodically tested through drills.
Customer Service & Complaints handling
Bank continues to give at most priority for resolution of
customer grievances in stipulated time lines to ensure better
customer service. The Bank has put in place Complaint
handling policy to redress the grievances of the customers of
the customers and improve the quality of customer service.
The Bank has an online Complaint Management System
(CMS) Portal, through which Customers can lodge their
Complaints / Feedback in the CMS through Banks Website,
Toll-Free & by Mail.
Complaints are also received at Head Office/ Regional
Offices/Branches. These Complaints are also uploaded in CMS
Portal and customer gets an immediate automatic
acknowledgement and can keep track of the Complaint.
Nodal Officer l identified at Head Office, will direct the
Complaints to the concerned Department and / or Regional
Office for redressal. Access to the E-Complaints CMS Portal is
given to identified Officials in Regional Offices and Head
Office to ensure that each and every complaint received at all
levels is captured in the system so as to monitor the
Complaints for timely disposal.
Bank also formulated a robust Whistle Blower Policy. The
Whistle Blower Mechanism is an internal mechanism
established for staff members to report to the management,
concerns about unethical behaviour, actual or suspected
fraud or violation of bank's code of conduct without fear of
retribution.
Bank is also having dedicated toll-free to assist our customers
on any kind of issues & also for their valuable feed back on the
Banks services.
The General Manager, Inspection & Audit Department, is
designated as Principal Nodal Officer for customer complaints
in the Bank. Moreover, all regional heads are designated as
nodal officers for their respective regions. Further, the names
of respective nodal officers along with their contact numbers
are displayed in all the branches of the Bank.
All Branches are conducting customer meets every quarter
and important customers are invited & Regional Office
officials / Regional Manager preside over the meetings
depending on the availability. Furthermore, Regional Office
Officials / Head Office Officials during their surprise visits to
Branches also go through customer grievances and if any
deficiencies were observed, corrective steps will be initiated.
The status of Complaints is being put up to the Board of
Directors in every meeting for their review and information.
we are with you!Annual Report 2019-20
43
stCustomer Complaints: Status as on 31 March 2020
S.No Particulars No.
1 No. of complaints pending at the beginning of the year 07
2 No. of complaints received during FY 2019-20 576
3 Total Complaints 583
4 No. of complaints redressed during FY 2019-20 560
5 No. of complaints pending as on 31.03.2020 23*
* Out of 23 complaints, most of them were closed during the first half of April 2020.
The position of banking Ombudsman Complaints received through / from Banking Ombudsman during the year.
S.No No.
1 No. of complaints pending at the beginning of the year 5
2 No. of complaints received during FY 2019-20 82
3 Total Complaints 87
4 No. of complaints redressed during FY 2019-20 77
5 No. of complaints pending as on 31.03.2020 10*
*5 Complaints are related to ATM Transaction failures and 3 received in last week of MARCH 2020.
Right to information Act
During the period 01.04.2019 to 31.03.2020, the Bank received a
total of 192 applications under RTI Act, 2005 and all of them were
disposed off within stipulated time frame by CPIO. Further total of
20 first appeals received and disposed by the First Appellate
Authority (FAA).
Further more, two second appeals were preferred to the Central
Information Commission (CIC), New Delhi against the decisions of
FAA and they were disposed off favourably to the Bank.
Human Resource Management
The past financial year saw HR Department implement quite a
few measures to enhance the experience of employees& to
boost their morale.
Employees are the biggest assets to the Bank, keeping this in
mind Bank had implemented vacation policy to Staff as a
prudent risk mitigation and preventive vigilance measure. As
per the policy, all the confirmed officers and clerical staff are
required to be away from their regular work / office for ten
continuous working days during a financial year.
The staff strength of the Bank as at the end of FY 2019-20 is
3305, the staff strength (excluding those who exited the
Bank's service in the month of March 2020 on account of
retirements / resignations) and its composition is as under:
Cadre
March 2019 March 2020
Number % of totalStaff
Number % of totalStaff
The representation of women in total force reached 23.5%.
Bank has taken several measures to provide safe and
conducive environment for women employees such as
sabbatical leave, annual health check-up among other
initiatives.
Bank has completely automated Annual Appraisals and
launched a IT tool exclusively for this purpose. This portal
enables staff members to submit their self-appraisal and
mandatory learning details.
Internal Complaints Committee
The Bank has also put in place operational guidelines and
mechanism for effectively dealing with cases of sexual
harassment /misdeeds against women employees in sync
with the provisions of The Sexual Harassment of Women at
Workplace (Prevention, Prohibition & Redressal) Act, 2013
and constituted Internal Complaints Committees at 11
Regional Offices and Head Office to deal with the complaints
of sexual harassment to ensure safe working environment for
women employees in the Bank. We have been sensitizing the
employees of both the genders to be fostering a healthy and
conducive work environment. The number of cases received
and disposed will be placed before the Board once in 6
months.
The details of the staff who exited the Bank's service during
the year on various grounds are furnished below.
we are with you!Annual Report 2019-20
44
62.20 63.10
Officers 1977 2085
a. OS-V 10 12
b. OS-IV 61 47
c. OS-III 212 233
d. OS-II 487 550
e. OS-I 1207 1243
Office Assistants 1127 35.40 1153 34.88
Office Attendants 77 2.40 67 2.02
Total 3181 3305
Particulars
S.No. Reasons No. of Staff
1 Retirement 121
2 Resignations 67
3 Dismissed 1
4 Removed 6
5 VRS 21
6 Deceased 13
7 Terminated by SRC 1
Total 230
73% of the total staff members (Total Staff-2277), who were on stthe Bank rolls as on 31 March 2006, i.e., on the date of formation
of APGVB by amalgamation of five erstwhile RRBs, have stretired/resigned as on 31 March.2020. The ratio of staff
recruited from 2009 onwards to the staff recruited in the
erstwhile RRBs has increased gradually and now only 627
staff(~19%) is in service who have joined prior to 2009 and rest
2678 joined in the service after 2009 , which implies more than
80% of the Bank staff are either young / in the middle age group.
The average age of overall employees has come down over the styears and the average age as on 31 March 2020 stands at
36.3 years.
Manpower planning and Recruitment
The Bank has been recruiting the Staff in various cadres through
IBPS since 2009-10, as per manpower assessment and
requirement undertaken as on 31st March of every year in terms
of Thorat Committee recommendations, presently as per Mitra
committee recommendations approved by GOI.
Accordingly, based on the business volumes as on 31.3.2019, the
Bank has taken up recruitment exercise for augmentation of staff
in various cadres, including lateral recruitment of Scale-II and
Scale-III Officers in General banking and with specialization in Law,
IT, Marketing, Treasury, Agriculture, Chartered Accountants etc.
During FY 2019-20 Bank has recruited 282 Officers in various
grades including specialist officers and 124 office Assistants.
S.No. Cadre/Grade No. of Candidates recruitedduring the FY 2019-20
1 Office Assistants 124
2 Officers Scale-I 118
3 Officers Scale-II 90
4 Officers Scale-III 14
As learning is key for growth, the Bank's in house Staff
Learning Centre has been working continuously to train and
inculcate diverse and inclusive culture among staff 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.
Promotions
Promotion is an annual exercise & number of employees
promoted in different cadres in the promotion process for
FY2020 is tabulated below. As many as 189 staff members
have been promoted to next higher grade as under:
S.No. Scale No. of promotions
1 Scale IV to V 4
2 Scale III to IV 9
3 Scale II to III 48
4 Scale I to II 78
5 O Asst to Officer Scale -I 50
6 O Attn. to O Asst. 0
Total 189
Based on the manpower assessment as on 31.3.2019, the
vacancies to be filled by way of promotions have been arrived
at and promotions affected in terms of the RRBs
(Appointment of Officers and Employees) Rules 2017.The
Written Test required to be conducted for promotion to Office
Assistant, Officer Scale-I, Scale-II and Scale-III was conducted
by IBPS.
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 give the written
test.
Training - Staff Learning Centre (SLC)
v APGVB SLC caters to the learning and training needs
particularly in the field of rural banking and strives to
develop skills of employees thereby enhancing
performance on the job.
v SLC designs and delivers training programs to impart
knowledge and stimulate the learning process in the
latest and emerging areas not limited to Banking,
Finance and Management.
v SLC serves as a focal point for meaningful, effective and
efficient collaborative arrangements with national and
international institutions for training and skill
development.
we are with you!Annual Report 2019-20
45
For the FY 2019-2020
No of Programme conducted
Allotted
MSME, HL & GPAB
Attended
10
254
250
No of Programmes
Allotted
Attended
Particulars of Programs
%
2242
2093
93.37%
2019-2020
55
Cadre Wise Training Arranged to Staff
Program Details 2019-2020
Officers 1189
Office Assistants 902
Office Attendants 2
Attended 2093
SC 407
ST 228
OBC 976
GEN 482
Women 433
Ex-Serv 60
S.No
External Programs
Name of the Programme TargetGroup
Allowed Attended
1 Concurrent Auditors Workshop (Contractual) AUDITORS 28 28
2 SHG-BLP- TGB, HYD Officers-TGB 30 29
3 Debt Recovery Agents for Bank Mitra FIC 75 74
During the year Bank has shifted it’s SLC functioned at
Warangal to the self-owned newly constructed spacious
premises at Sangareddy admeasuring approx. 28,000 Sq.ft
deployed to augment the training system. During 2019-2020
SLC has conducted 55 programs comprised of 2093
participants.
Chairman Shri. K. Praveen Kumar inaugurating the SLC building atSangareddy on 06.01.2020
Apart from regular programs associated to KYC, AML,
Investment Credit Portfolio, Agricultural Economics, Rural
Development, Financial Inclusion, SME Lending, Housing
Loans and other Special programs for external staff and
academic community also.
On 29.01.2020, SLC, Sangareddy has organized a session on
Financial Interventions and Socio-Economic Livelihood
activities for 45 no.'s MMGS Scale – III staff of M/s Mizoram
Grameena Bank (MGB), led by their Chairman Sri. V.Jaya
Chandra. The session has been highly interactive and
comprised of a field visit to study the functioning of the
Mandala MahilaSamakhya (MMS) in Kondapur Mandal.
About 267 separate interactions were recorded by the MGB
staff. Majority of participants comprised of active groups from
Haridaspur, Terpole & Malkapur villages.
we are with you!Annual Report 2019-20
46
Off-Site Programme NameSpecial Programmes conducted
On 20.02.2020, a team of 60 students led by Dr. Pawan Kumar
Avadhanam, PhD. (Economics), Dean of Management Studies,
Institute of Public Enterprises (IPE), an autonomous centre for
higher education have requested for and an exclusive program
has been convened in the paradigm of Rural Development and
Financial Interventions. The sessions have paved the way for a
possible MoU for scheduling future events in the area of Rural
Economics, Farm Management and Agricultural Economy
On 21.02.2020, it has been advised by NABARD that in lieu of
then urgent need to fillip the implementation of National
Rural Livelihood Mission, the Government India's flagship
Poverty Alleviation Programme, the capacity building of the
functionaries at the field level on SHG Linkage programme has
been felt increasingly necessary. Hitherto, the NABARD has
sought from APGVB to conduct a 3-Day intensive in-house th th thprogram for Telangana Grameena Bank staff 5 , 6 & 7 March
2020. Since the training requirements of the identified
bankers were adequately met, the NABARD advised that for
2020-21 more such programs may be conducted and due
customizations be done for catering to the requirements of
respective banks. Complete financial support would be
offered by NABARD for all such programs.
thPeddareddi Peta (V), Pulkal (M) - Interaction Program – 6 March 2020
Team Building Activity – TGB Participants @ Singur Village
APGVB SLC is now capacitated to execute offsite programs, on
MSME, Housing Loans & GPAB for selected HUB-Spoke
Branches and Regional Office staff in all regions to improve
high value and secured advances for diversification of
advances.
we are with you!Annual Report 2019-20
47
Staff learing centre Building at Sanga Reddy - Lecture Hall
Staff learing centre Building at Sanga Reddy - Computer Class Room
Reception Hall
Group Discussion Room for Participents Library Room
Accomadition facility for trainees (A/c Single / Double Bedroom)
we are with you!Annual Report 2019-20
48
Modern Video Conference facility
Infrastructure / Faclities provided at Staff learing Centre, Sanga Reddy
INTERNATIONAL WOMEN'S DAY CELEBRATIONS 2020 thWe have been celebrating International Women's Day on 8 March every year. This year also we organised the events to highlight
the achievements of our Women staff members on 08.03.2020 with the theme “An Equal World is an Enabled Word.”
The Bank has also deputed 67 Officers, essentially in the
higher cadres, to external training institutions like BIRD
(Lucknow), RBI (CAB, Pune), BIRD (Mangalore), MANAGE,
Hyderabad, IIBF, Hyderabad, ni-msme, Hyderabad, State Bank
International Women's Day Celebrations on 08.03.2020 at SLC Sangareddy
Almost One fourth of our workforce constitute women staff
members and they are working at all levels of hierarchy from
Branch Manager to Office Attendant and shortly, the Chief
Manager grade will also have women members by way of
promotions. As we all know, all positions in the Bank call for
leadership qualities, to be successful. As we observe there are
women staff members with abundant leadership qualities and
capable of achieving success against odds. However, while
some people exhibit leadership qualities naturally, sometimes
the working environment with competitive spirit, will offer
enough stimuli to bring out inherent / hidden leadership
qualities. Recognition of one's abilities always plays a big role
in encouraging the members to take on higher roles and
responsibilities and succeed.
On the occasion of IWD, we celebrated the achievements of
our women members with titles “Woman Leader of the Bank
under BM's category” and for other positions viz., Accountant,
Field Officer and Office Assistant by taking into account their
Profess iona l ach ievements , Persona l and Soc ia l
achievements.
We have also felicitated the Best Bank Mitra in every Region
on this occasion.
Staff welfare Measures
Mediclaim policy
In terms of Government of India letter No: F.8/1/2015-R RB
dated 20.10.2016, our Bank has implemented Medical
Insurance Scheme as per Xth Bipartite Settlement to
employees and officers along with their dependent family
members as detailed in Schedule IV. The Scheme covers
Employee + Spouse + Dependent Children + 2 dependent
Parents / parents-in-law with a Sum Insured of Rs. 4.00 lakhs
and Rs. 3.00 lakhs for Officers and employees respectively.
We have also taken a Corporate Buffer to cover additional
expenditure up to Rs. 4.00 lakhs and Rs. 3.00 lakhs for officers
and employees respectively, if the hospitalization
expenditure exceeds the sum insured. 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. The scheme also covers
domiciliary treatment expenses up to 10% sum insured.
Around 11500 members including family members of Staff
have been covered under the Scheme.
we are with you!Annual Report 2019-20
49
Learning Centres on important subjects like high value
financing, Term Lending, SME finance, AML, ALM, KYC, RTI
Act, Treasury Management, Business Development etc. n
Enabled Word.”
Friendly Cricket match organized for staff at Khammam
Group Personal Accident Insurance Policy
As part of employee friendly measures, Bank has taken up the
initiative of Group Personal Accident Insurance Policy with the
following sum insured to create a sense of security among the
staff members and towards building loyalty to the
organization
SN Cadre Sum Insured
1. Officer Scale-III & IV Rs.10 lakhs
2. Officer Scale-I & II Rs.7.50 lakhs
3. Office Assistants Rs.5.00 lakhs
4. Office Attendants Rs.3.00 lakhs
Our Bank has been facing severe attrition causing acute staff shortage and these measures will boost the morale of the staff members.
Gratuity and Leave Encashment Fund
The Bank is maintaining adequate provisions in respect of
Gratuity and Leave encashment. The total corpus in Gratuity
fund as on 31.3.2020 is Rs. 135,34,96,626.14/- (Rupees One
Thirty Five Crore Thirty Four Lakhs Ninety Six Thousand Six
Hundred and twenty six Only)and Rs. 98,65,50,538.35/-
(Rupees Ninety Eight Crore Sixty Five Lakh Fifty Thousand Five
Hundred Thirty Eight and Thirty Five paisa only) corpus
maintained in Leave Encashment.
During the year, the total Gratuity paid to the exited Staff
stood at Rs. 25,12,08,736/- (Rupees Twenty Five Crore Twelve
Lakh Eight Thousand Seven Hundred and Thirty Six only) and
Leave Encashment paid to the staff at Rs. 9,60,22,401/-
(Rupees Nine Crore Sixty Lakh Twenty Two Thousand Four
Hundred and one Only).
Retired Employees – Welfare Measures
The welfare and comfort of retired employees' remains to be
one of the key priorities of the Bank & Bank has ensured that
all terminal benefits viz., Gratuity, Encashment of privilege
Leaves, Pension etc., to all the eligible retired staff on the date
of retirementare settled on the date of retirement of staff
members. Bank is also implementing Medical Insurance
Scheme for Retired Staff members and their spouse (Self-stFunded scheme) & as of March 31 2020, more than 750
retired employees have been covered under the scheme.
Pension Scheme
Bank has been implementing Pension scheme with effect stfrom 01 April 2018 consequent to the orders of Supreme
Court extending pension to RRB employees.
The Bank is maintaining adequate fund for payment of
Pensions to all the eligible. An amount of Rs. 206,31,78,297/-
(Rupees Two hundred and Six Crore Thirty One Lakhs Seventy
Eight Thousand Two hundred and ninety Seven Only) is
provided by the Bank to Pension fund during the FY 2019-20
based on the Actuarial Valuation report submitted by an
independent Actuary.
The total corpus in Pension Fund as on 31.03.2020 excluding
the provision amount is Rs 761,13,51,379/- (Rupees Seven
hundred and Sixty One Crore Thirteen Lakhs Fifty One
Thousand Three hundred and Seventy Nine Only).
During the year, the total Pension paid to the pensioners is
Rs. 158,85,65,836/- (Rupees One hundred and Fifty Eight
Crore Eighty Five Lakhs Sixty Five Thousand Eight hundred and
Thirty Six Only) out of which an amount of Rs. 85,78,72,122/-
(Rupees Eighty Five Crore Seventy Eight Lakh Seventy Two
we are with you!Annual Report 2019-20
50
Thousand One Hundred and Twenty Two Only) is paid towards
lump sum commutation.
Implementation of Scheme for Appointment on
Compassionate Grounds
In terms of Government of India letter F. No. 7/38/2014-RRB
dated 31.12.2018 received through NABARD letter No:
NB.IDD.RRB/1216/316 (Compassionate Appint.) /2018-19
dated 09 January 2019, revised Model scheme for
appointment on compassionate grounds as per the scheme in
Public Sector Banks circulated by IBA to CEOs of PSBs vide
letter No. CIR.HR&IR/2014-15/532/476 dated 11 August
2014, has been approved by the Board and implemented in
the Bank.
Industrial Relations
Cordial relations are being maintained with Officers
Association & Employees Union in order to facilitate the staff
to work in a congenial atmosphere, thus, leading to business
development of the Bank, both qualitative and quantitative.
The representations made by the Association & Union are
promptly addressed in order to look after the welfare of staff.
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 the statutory requirements as per the
directives of Govt. of India and the National Bank, Accordingly,
the Bank has held structured meetings, as per the stipulated
time lines, with the representatives of Welfare Associations.
The Bank has taken all steps to keep up the morale and
motivation of the employees.
The end of financial year witnessed the COVID-19 outbreak &
subsequent lockdown. Bank has taken all measures ensuring
essential services at the Branch level, Regional level and Head
Office level are not hampered. Bank has issued frequent
communications on DO's and DONT'S and created awareness
among the Staff & BCP was effectively implemented.
Vigilance Administration:
Vigilance administration plays a key role for every financial
institution and it is a managerial function. In the present
context as the Bank is growing in size and with the infusion of
new and young work force, which now constitute over 80% of
the total staff, vigilance plays aprominent role. Vigilance
together with sensitization to be vigilant has been the thrust
area of Bank. Chief Vigilance Officer is posted in the Bank to
we are with you!Annual Report 2019-20
51
look after the Vigilance administration. Deputy General
Manager (Vigilance), State Bank of India, Local Head Office,
Hyderabad, on a monthly periodicity reviews the vigilance
activities.
All branches having aggregate Business of above Rs. 10 crore
have formed their Preventive Vigilance Committees (PVC)
which will meet at quarterly intervals. RO PVCs at quarterly
intervals will meet to deliberate the critical issues raised in the
Branch PVC meetings. Head Office Preventive Vigilance
Committee will meet at quarterly intervals to discuss issues
raised by the RO PVCs. Officials from Vigilance Department,
State Bank of India, LHO, Hyderabad will be visiting either
Branches/Regional Offices/Head Office once in a quarter to
sensitise the staff on preventive vigilance measures. Such
meetings were conducted on 29.06.2019 at RC Puram Branch,
on 25.09.2019 at Nalgonda Branch and on 13.12.2019 at Head
Office, Warangal, where in Chief Manager from Vigilance
Department, SBI, LHO, Hyderabad participated.
State Bank of India, Vigilance Department has organised two th stdays' workshop on 20 June & 21 June 2019 for RRB officials
at SBILD, Marredpally, Secunderabad for dealing domestic
enquiries as Enquiry Officers, Presenting Officers and
Investigating Officers and our bank has deputed 9 officials.
Bank has launched Vigilance Portal on the Bank's Vikas net in
the august presence of Shri Md Shariff, General Manager,
NABARD, TSRO & Shri K Praveen Kumar, Chairman, APGVB on nd2 November, 2019 which is mainly aimed at disseminating
information on preventive vigilance activities & measures,
vigilance advisories and vigilance related activities. It also
contains all circulars issued by Vigilance Department and
information of Suspensions/Dismissals. Our Bank has also
launched online vigilance quiz for all staff for increasing
awareness about systems & procedures, other vigilance
related information.
Bank has launched its Vigilance Manual on vigilance
administration with the guidance and support of sponsor
bank.
Vigilance Awareness week:
The Vigilance Awareness week from 28.10.2019 to
02.11.2019 with the main theme “Integrity – a way of life”
was conducted with renewed fervour and with greater
participation from Head Office, Regional Offices and Branches
by displaying banners, conducting gram Sabhas, elocution
we are with you!Annual Report 2019-20
52
and essay writing competitions for school/college children
etc. All the staff members have undertaken e-pledge during
the week &1923 staff participated in online quiz. Grama
Sabhas were conducted by the branches to create awareness
among the public on anti-corruption and Preventive
Vigilance. In addition to the participation of customers, the
Bank also ensured involvement of younger generation with
more than 2000 students participating in various events
during the week.
An exclusive session on preventive vigilance is being taken by
the CVO of the Bank, in all training programmes & workshops
conducted by the bank, to sensitize all the staff members
about vigilance aspects in day to day operations.
During the FY Bank has reviewed and adopted Whistle Blower
Policy to align the policy in context with prevailing regulatory
guidelines.
Rolling out of Vigilance portal by Shri K I Shariff GM NABARD
Vigilance Awareness week Rashtriya Ekta Diwa being observed by
Sangareddy RO staff.
Vigilance Awareness week being observed Head Office, Regional Officeand at Branches
Attendance of Directors at Board Meetings during the calendar year 2019
SNo
Name of the Director WEFNo of
Meetingsheld
No ofMeetingsattended
1 Shri K. Praveen Kumar 02.02.2019 9 9
2 Non Official Director – Vacant* -
3 Non Official Director – Vacant* -
4 Reserve Bank of India
Shri Y. Rambabu 01.04.2018 9 8
5 NABARD
Shri Sukanta K. Sahoo 10.07.2019 9 6 Shri CSR Murthy 21.05.2018
6 Sponsor Bank (SBI)
Shri J Prakash Raman 30.09.2019 9 7 Shri Kasi Srinivas 16.09.2017
7 Sponsor Bank (SBI)
Shri S. Ganesan 07.09.2017 9 8
8 Govt of A.P. Sri KVV Satyanarayana 06.11.2017 9 1
9 Govt. of Telangana
Shri Rayi Ravi, Addl.Secy 27.04.2019 9 4
Shri Patil Prashant Jeevan 11.10.2016 IAS
*The term of Govt of India Nominee Directors has completed
during September 2016 and proposals were sent to Govt of
India through NABARD/SBI for fresh appointment of directors.
Fresh appointments are yet to be made by Govt of India and
presently these two posts are vacant.
During the intervening period of two Board Meetings, as and
when warranted, the Board has transacted the business by
means of Circulation of 12 agenda notes during the year 2019,
which were confirmed by the Board in its next Meeting The
Board has undergone the following changes in the
composition on account of transfer / superannuation of
officials during the year.
v Shri Sukanta K. Sahoo, Deputy General Manager,
NABARD, TSRO, Hyderabad was nominated as Director in
place of Shri CSR Murthy, General Manager, NABARD,
TSRO, Hyderabad.
v Shri Jyoti Prakash Raman, Deputy General Manager(ABU)
, State Bank of India , LHO , Hyderabad was nominated as
Director in place of Shri Kasi Srinivas , Deputy General
Manager , State Bank of India , LHO , Hyderabad.
v Shri Rayi Ravi, Addational Secretary in Finance Dept. took
we are with you!Annual Report 2019-20
53
Board
The Board of the Bank is constituted by
(1) Chairman of the Bank (Chairman of the Board)
(2) Two non-official directors appointed by Government of
India
(3) One nominee director each from Reserve Bank of India
and NABARD
(4) Two nominee directors from Sponsor Bank
(5) Two nominee directors from state Government of A.P./
Telangana.
Board Meeting Rules stipulate that the Board meets minimum
six times a year, at least once in a quarter. As against the
stipulated minimum number of six meetings, Board met 9
times during the calendar year.
Minimum quorum for the Board Meeting to transact business
is four directors and no meeting was adjourned for want of
quorum.
Adequate notice is given to all directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance and a system exists for seeking
and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful
participation at the meeting.
ATTENDANCE AT BOARD MEETINGS
The Board / Committee Meetings are convened by giving
appropriate notice well in advance. The Directors / Members
are provided with appropriate information in the form of
agenda items in a timely manner, to enable them to
deliberate on each agenda item and make informed decisions
and provide appropriate directions to the Management in this
regard. Majority decision is carried through while the
dissenting members' views are captured and recorded as part
of the minutes.
Video-conferencing facility or other audio visual means are
also provided at the Board / Committee meetings in case any
director is unable to physically remain present at the
meetings but wishes to participate in the meetings.
_________________________________________________
Dates of the Board Meetings held during the year:
13.02.2019, 12.04.2019, 03.05.2019, 07.06.2019,
18.07.2019, 14.08.2019, 27.09.2019, 15.11.2019,
24.12.2019.
transparency in the Bank's accounts and adequacy of
accounting controls to address the risks faced or likely to be
faced by the Bank.
v Financial position – Balance Sheet and Profit & Loss
Account statement
v Position of house keeping and Inter Office reconciliation
(BCGA) and outstanding entries.
v Certification of holding securities as reported to the RBI
every quarter by Concurrent Auditor.
v Bank's participation in treasury transactions
v Status of frauds surfaced etc.
Fraud Monitoring Committee
Fraud Monitoring Committee, a sub-committee of the Board,
constituted in terms of NABARD guidelines, met three times
during the year and reviewed the fraud cases and suggested
expediting the closure of the cases.
Special Review Committee
As per Service regulations of Officers and Employees of the
Bank, a Special Review Committee has met one time during
the Calendar Year 2019-20 and took up review of the
performance of the officers who completed 55 years of age or
30 years of service and took a view for extension of service up
to superannuation or to decide further review in a future date
before superannuation.
we are with you!Annual Report 2019-20
54
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/ interactions
during the meetings 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, both the state
Governments Telangana and 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.
charge as Telangana State Government Nominee
Director replacing Shri Patil Prashant Jeevan, IAS,
Magistrate and District Collector, Warangal.
The Bank places on record the invaluable services rendered by
the Director Shri Kasi Srinivas, Deputy General Manager, State
Bank of India , Shri CSR Murthy, General Manager, NABARD,
TSRO, Hyderabad and Shri Patil Prashant Jeevan, IAS,
Magistrate and District Collector, Warangal as Director on
Bank's Board.
Sub-Committees of the Board
Audit Committee of the Board
The Audit Committee, constituted with one SBI-nominee-
director as Chairman and nominee directors of RBI, NABARD
and Govt. of India as members has met 3 times during the year
and reviewed the following areas:
v Position of Conducting of different Audits
v Common irregularities observed in (a) Risk Focused
Internal Audits (b) Snap Audit Reports (c) Concurrent
Audit.
v Audit of Regional Offices, Accounts Department at Head
office
v Special Audits
v Review and follow-up action on the Internal Audit Reports,
particularly of “Unsatisfactory” branches and large
branches and also on Concurrent Audit observations.
v Follow-up action on irregularities pointed out by Internal
Auditors at large branches in RFIA and in the Concurrent
Audit Reports.
v Branches where audit rating is downgraded.
v Compliance for NABARD inspection Report, Statutory
Audit Report, Management Audit, RFIA, Snap Audit
reports, Concurrent Audit reports, Bank Mitra Audit
Report.
v Fixing accountability for unsatisfactory compliance of
Audit reports delay in compliance and non-rectification of
deficiencies.
v Review on omissions on the part of Internal Inspecting
Officials/ Concurrent Auditors to detect serious
irregularities which come to light later
v Periodical review of the accounting policies/systems
controls in the Bank with a view to ensuring greater
Apart from our customers, the support received from the
Government Departments / Institutions of both Telangana
and Andhra Pradesh States was immense and augmented
our resources. The Board wishes to thank Telangana State
Co-operative Apex Bank Limited (TSCAB), the Andhra
Pradesh State Co-operative Apex Bank Limited (APCOB),
The Advocates Mutually aided Co-operative Society
Limited (MACS Society), Hyderabad, Pollution Control
Boards three Nidhi Credit Co-Op Federation Ltd, Marked,
Industrial Development Corporations and Endowments
Departments of both Telangana and Andhra Pradesh States
for their patronage.
The Board extends its heartfelt gratitude to M/s Rao &
Kumar, the Central Statutory Auditors of the Bank and
other Statutory Branch Auditors for their cooperation in
completing the Audit of the Bank's Financial Year 2019-20
in time.
The Board also expresses its gratitude to all Public
Relations Officers, Print and Electronic 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.
Bank also wish to place on record their appreciation of
employees for their commendable efforts, teamwork and
professionalism in taking the Bank's business upward and
Bank's image forward. The total dedication exhibited by
the employees has put the Bank on top and they deserve
all appreciations and accolades from all stake holders.
55
we are with you!Annual Report 2019-20
For and on behalf of Board of Directors of
Andhra Pradesh Grameena Vikas Bank
(K. Praveen Kumar)Chairman
Further, the Board would like to convey its gratitude to Shri
Dinesh Khara, MD, State Bank of India, Corporate Centre,
Mumbai, Shri S.P. Singh, Chief General Manager (A&S), SBI,
Corporate Centre, Shri S. Ganesan, General Manager
(RRBs), SBI, Corporate Centre and all the team members in
A&S Department, SBI, Corporate Centre Mumbai. The
new initiatives introduced by the Corporate Centre to
enhance the capacity building of the Staff and to increase
the business development and business reengineering by
way of setting up of AMHs have proved to be extremely
useful in taking this Bank forward. The Bank is indebted to
these executives for their constant hand holding.
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
promotions.
The Board conveys its gratitude to Shri Subrata Das,
Regional Director, Reserve Bank of India, Hyderabad; Shri.
T. Srinivasa Rao, Banking Ombudsman, RBI, Hyderabad for
their support. The Board also acknowledges the great
support and affectionate guidance from Shri Vijay Kumar,
Chief General Manager, NABARD TSRO and his team of
General Managers Shri B.K. Mishra, Shri K.I. Shariff and Shri
S. Selvaraj, Chief General Manager, NABARD, APRO, Officer
in Charge Shri P N Praveen Kumar, CGM and General
Manager Shri Prabhakar Behera.
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 all the
districts in Telangana and Andhra Pradesh where our Bank
is operating, for their support and encouragement.
The Board would like to gratefully acknowledge the
support rendered by our Technology Service Providers viz.,
M/s C-Edge Technologies, Mumbai, M/s National
Payments Corporation of India, M/s Irix Technologies and
Accordingly Gram Tarang Inclusive Development Services
Pvt Ltd (GTIDS).
Balance Sheet
Profit & Loss A/c
Schedules
Notes to Accounts
Performance in Figures
57
we are with you!Annual Report 2019-20
INDEPENDENT AUDITORS' REPORTRao & Kumar
Chartered AccountantsTo
The Shareholders
Andhra Pradesh Grameena Vikas Bank
Report on the Financial Statements
Qualified Opinion
1. We have audited the accompanying financial statements of Andhra Pradesh Grameena Vikas Bank (“the Bank”) as at March 31,
2020, which comprise the balance sheet as at March 31, 2020, the statement of Profit and Loss and the statement of cash flows
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:
i. The Head Office and 39 Branches audited by us;
ii. 403 Branches audited by Other Auditors
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 National Bank for Agriculture and Rural Development (NABARD). Also incorporated in the
Balance Sheet and the Profit and Loss Account are the returns from 333 branches (including other accounting units) which have
not been subjected to audit. These unaudited branches account for 25.00% percent of advances, 25.05% percent of deposits,
and 18.64% percent of interest income and 17.50% percent of interest expenses.
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of
the matter described in the Basis for Qualified Opinion section of our report:
i. The Balance Sheet, read with the significant accounting policies and 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 March 31, 2020in conformity with accounting principles generally accepted in India;
ii. The Profit and Loss Account, read with the significant accounting policies and 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.
Basis for Qualified Opinion
2. The onset and rapid propagation of COVID-19 has caused disruptions in the banking operations, restrictions on travel,
meetings and access to client locations and other practical difficulties resulting in Distance Audit / Remote Audit / Online Audit.
Further, certain regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by
disruptions and to ensure the continuity of viable businesses. We were unable to physically verify relevant information, items,
documents and records. As a result, we were unable to determine whether any adjustments were necessary in respect of the
bank's assets that it controls, its liabilities for which it is responsible, its income and expenses for the year, and the cash flow
statement.
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our responsibilities under those
Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Bank in accordance with the code of ethics issued by the Institute of Chartered Accountants of India
together with ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
59
we are with you!Annual Report 2019-20
Key Audit Matter How it has been addressed
Impact of COVID-19 :
The onset and rapid propagation of COVID-19 has caused
disruptions in the banking operations, restrictions on travel,
meetings and access to client locations and other practical
difficulties resulting in Distance Audit / Remote Audit /
Online Audit. Further, certain regulatory measures were
announced by RBI to mitigate the burden of debt servicing
brought about by disruptions and to ensure the continuity of
viable businesses.
Considering the nature of the restrictions, limitations,
regulatory requirements, existing business environment,
materiality and their possible impact on the operative
effectiveness on the critical control systems and risk of
material misstatement the audit requires significant efforts
in verification, planning and performing alternative
procedures and exercise of more professional scepticism
tomitigate identified risks / weakness and ensure
compliance with Standards on Auditing. Further, this is a
matter of high importance for the intended users of the
financial statement. Considering these aspects, we have
considered this as a Key Audit Matter.
Our Procedure:
Though the methodologies of conducting audit are likely to
undergo a change, the objective of the audit does not change,
which require the auditors to ensure that sufficient
appropriate audit evidence is available with the auditor based
on which he is able to express his opinion.
In Identifying and Assessing the Risks of Material
Misstatement and operating effectiveness of critical controls
through Understanding the Bank and its Environment the
following issues had been considered:
1) Operational disruption resulting in any changes to the
business model.
2) Employee's absence or work from home.
3) Restrictions on travel.
4) Access to Systems, Data, Documents, Officials.
5) Inability to physically verify relevant information, items
and records.
Specific Considerations adopted while conducting Distance
Audit / Remote Audit / Online Audit of Bank Branch under
current Covid-19 situation :
1) Obtaining the data / documents required for the purpose
of conducting the audit in soft copy / scanned format.
2) Arrangement of visit to Nearest Branch / Central
Processing Cells (CPCs) or to make the files maintained at
CPCs available at the branch.
3) Seek support for presence of requisite branch officials.
4) Communications by email instead of physical mode
wherever necessary.
Adopting the SOPs under Covid-19 situation and strictly
complying with the government regulatory guidelines
issued.
Emphasis of Matter
3. We draw attention to Schedule 18 (II) (12)to the financial
statements, which describe the possible impact
ofCovid19,policies adopted and disclosures required
under the relevant Circulars issued by RBI. Our opinion is
not modified in respect of this matter.
Key Audit Matters
4. Key audit matters are those matters that, in our
we are with you!Annual Report 2019-20
60
professional judgment, were of most significance in
our audit of the financial statements for the year
ended March 31, 2020. These matters were addressed
in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Key Audit matter How it has been addressed
Verification of Advances:
Advances constitute 55.03 % of the bank's total assets.
The carrying value of these advances (net of provisions) may
be materially misstated if individual or collective income
recognition, classification and provisions are not
appropriately identified and estimated as per RBI guidelines.
Identification of performing and non-performing assets,
involves establishment of proper mechanism. The Bank
accounts for all the transactions related to advances in its
Information Technology System called Core Banking Solution
(CBS). Further, NPA stamping and provisioning is also done in
the CBS. Considering the nature of the transactions,
regulatory requirements, existing business environment,
and the materiality, audit of advances require significant
efforts in verification of the income recognition, asset
classification and provisioning. Further, it is a matter of high
importance for the intended users of the financial statement.
Considering these aspects, we have considered this as a Key
Audit Matter.
Our Procedure:
We have tested the design and operation of CBS to ensure
that IT system is designed in line with the Master Circular on
IRAC norms and other related circulars issued by RBI/
NABARD and internal policies developed by the Bank in
accordance with such Norms, including:
The accuracy of the data input in the system used for income
recognition, asset classification and provisioning in
accordance with RBI regulations
Business Logics/Parameters are in-built in CBS for Tracking,
Identification and Stamping of NPA.
Existence and effectiveness of monitoring mechanisms like
Internal Audit, Systems Audit, Snap audit and daily
Concurrent Audit.
We have examined :
The Reports, MOCs and certificates issued by the Branch
Auditors have been considered including observations made
in the LFAR. Observations, if any, by various audits conducted
as per the monitoring mechanism of the bank including
NABARD Inspection and how they have been dealt with.
Our audit procedures included considering the
appropriateness of the Banks's accounting policies and
assessing compliance with the policies in terms of the
applicable accounting standards. We have examined the
efficacy of various internal controls over advances to
determine the nature, timing and extent of the substantive
procedures. We performed test of controls over asset
classification with specific focus on whether IRAC norms are
followed adequately along with the provisioning
requirements.
In carrying out substantive procedures, we have examined all
large advances while other advances have been examined on
a sampling basis. All the stressed accounts of significant
amount have been examined in detail.
Large numbers of Branches are being audited by the
Statutory Branch Auditors who are firms of Chartered
Accountants included in the panel of NABARD and appointed
by the Bank. We have made, among others, specific
communication to the Branch Auditors to examine the
advances. We have relied on the various returns relating to
advances audited by these Statutory Branch Auditors and
there report in respect thereof.
we are with you!Annual Report 2019-20
61
Key Audit matter How it has been addressed
Provision for Pension:
The bank has provided under a Defined Benefit Plan for
pension of all the eligible employees. The pension liability is
reckoned based on an independent actuarial valuation
carried out and bank makes such initial contributions,
periodically to the fund as may be required to secure
payment of the benefits under the pension regulations. The
cost of providing defined benefits is determined using the
Projected Unit Credit Method, with actuarial valuations
being carried out at each balance sheet date.
The measurement of provision being complex, requiring
significant professional judgement and estimation in the
selection of requisite long-term assumptions and any
deficiency / error in such assumptions may result in
inaccurate valuation as per AS 15 and consequent significant
impact on the Financial Assertions, in view of the same we
consider this to be a key audit matter.
Our Procedure:
The bank has a HRMS package in place where details of
employees such as Name, Date of Birth, Date of Joining, Basic
Pay and other relevant information are being maintained.
Details of all the eligible employees have been considered
from such package and are forwarded to registered actuarial
valuer along with assumptions for actuarial valuations.
We have verified the mechanism in place to ensure
completeness of the employee data shared for valuation.
Further, we have reviewed the experts' assessment of the
appropriateness and reasonableness of the assumptions
submitted by the bank in relation to such valuation and for
matters involving significant professional judgement; we
have relied upon the methodologies adopted by the
Actuarial Expert as suggested in “SA 620 – Using the Work of
an Expert”.
Responsibility of the Management and those charged with Governance for the Financial Statements
1. The Bank's Board of Directors is responsible for preparation of these 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 in accordance with the provisions of
the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments 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.
In preparing the financial statements, management is responsible for assessing the Bank's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditor's Responsibility for audit of financial statements
2. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
we are with you!Annual Report 2019-20
62
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
7. We did not audit the financial statements / information of 333 branches included in the standalone financial statements of the
Bank whose financial statements / financial information reflect total advances of Rs. 4,830.80 Crore as at March 31, 2020 and
total revenue of Rs. 558.85 Crore (Interest on advances and Commission income) for the year ended on that date, as
considered in the standalone financial statements. The financial statements / information of these branches have been
audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the
amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third Schedule
to the Banking Regulation Act, 1949.
Subject to the limitations of the audit indicated in paragraph 2 to6 above and subject to the limitations of disclosure required
therein, were port 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 our audit.
we are with you!Annual Report 2019-20
63
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.
In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting
standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI
Place: Hyderabad
Date: 10.05.2020
For RAO & KUMARChartered Accountants
FRN: 003089S
CA K S Vamsi KrishnaPartner
MNO: 229988UDIN No.
we are with you!Annual Report 2019-20
64
(Rs in '000s)st
Balance Sheet As At 31 March 2020
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
As per our report of even dateFor Rao & Kumar Chartered AccountantsFR No: 003089S
For Andhra Pradesh Grameena Vikas Bank
(CA. K S Vamsi Krishna) (Ch Sree Rama Somayaji) (K. Praveen Kumar)
Partner General Manager Chairman
M No : 229988
Place: Warangalth
Date: 10 May 2020
(Y Rambabu) (Sukanta K Sahoo) (Dinkar Argal)Director Director Director
(Bhuvanendra Takoor) (Satyanarayana, IRAS) (R Ravi)
Director Director Director
we are with you!Annual Report 2019-20
65
Particulars Sch. As on 31.03.2020 As on 31.03.2019
CAPITAL AND LIABILITIES
Capital 1 94 08 50 94 08 50
Reserves & Surplus 2 2904 94 82 2286 76 34
Deposits 3 18495 69 07 16055 95 57
Borrowings 4 8465 87 52 6471 00 50
Other Liabilities & Provisions 5 1315 60 44 1729 63 51
Total 31276 20 35 26637 44 42
ASSETS
Cash and balances with RBI 6 634 79 82 810 94 53
Balances with Banks and Money at Call
& Short Notice 7 8172 26 70 4494 80 13
Investments 8 3838 85 34 5392 30 59
Advances 9 17234 46 95 14834 92 68
Fixed Assets 10 68 49 86 59 86 67
Other Assets 11 1327 31 68 1044 59 82
Total 31276 20 35 26637 44 42
Contingent Liabilities 12 68 15 65 31 54 37
st Profit & Loss for the year ended 31 March 2020 (Rs in '000)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
we are with you!Annual Report 2019-20
Particulars Sch. Year Ended 31.03.2020 Year Ended 31.03.2019
1 Interest Earned 13 2603 51 33 2369 37 59
a. Interest/Discount on Advances/bills 1972 97 85 1728 79 81
b. Interest on Investments 329 61 35 398 81 15
c. Interest on Balances with RBI and Other
Inter Bank Funds Nil Nil
d. Interest on TDRs with Banks 300 92 13 241 76 63
II Other Income 14 409 93 00 287 95 22
a. Commission, Exchange and Brokerage 253 15 84 237 39 44
b. Miscellaneous Income 156 77 16 50 55 78
III TOTAL 3013 44 33 2657 32 81
IV Interest Expended 15 1390 47 25 1322 92 94
V Operating Expenses (a + b) 16 409 95 06 376 22 99
a. Employees Costs 272 26 33 266 19 18
b. Other Operating Expenses 137 68 73 110 03 81
VI Total Expenditure
(excluding provisions and Contingencies) ( 4+5) 1800 42 31 1699 15 93
VII Operating Profit before provisions and
Contingencies (3-6) 1213 02 02 958 16 88
VIII Provisions (other than tax) and Contingencies 319 61 99 807 57 07
IX Profit from Ordinary Activities before Tax (7-8) 893 40 03 150 59 81
X Tax Expense
a. Provision for Taxation-Current Year (276 92 88) (45 00 00)
b. Deferred Tax Asset 1 10 16 (43 71)
c. Earlier Years Adjustments (Excess) Nil 6 87 74
XI Net profit for the period from Ordinary
Activities after Tax 617 57 31 112 03 84
66
(Rs in '000s)
Particulars Sch. Yr Ended 31.03.2020 Yr Ended 31.03.2019
we are with you!Annual Report 2019-20
APPROPRIATIONS
Net Profit for the period 617 57 31 112 03 84
Add: Brought forward Profit 1786 49 56 1700 95 29
Add: Excess Provision written back 61 17 Nil
Transfer to the Statutory Reserves 123 51 46 22 40 77
Transfer to the Capital Reserves 1 10 918 Nil
Special Reserve u/s 36(1)(viii) of IT Act, 1961 24 54 24 4 08 80
Profit Carried Over to Balance Sheet 2245 53 16 1786 49 56
Summary of Significant Accounting Policies 17
Disclosures and Notes to Accounts 18
67
As per our report of even dateFor Rao & Kumar Chartered AccountantsFR No: 003089S
For Andhra Pradesh Grameena Vikas Bank
(CA. K S Vamsi Krishna) (Ch Sree Rama Somayaji) (K. Praveen Kumar)
Partner General Manager Chairman
M No : 229988
Place: WarangalthDate: 10 May 2020
(Y Rambabu) (Sukanta K Sahoo) (Dinkar Argal)Director Director Director
(Bhuvanendra Takoor) (Satyanarayana, IRAS) (R Ravi)
Director Director Director
SCHEDULE – 1 CAPITAL
st Schedules forming Part of Balance Sheet As on 31 March 2020
(Rs in '000’s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
we are with you!Annual Report 2019-20
68
Particulars As on 31.03.2020 As on 31.03.2019
Authorised Capital 2000,00,00 2000,00,00
(200,00,00,000 Equity Shares of Rs.10/-each)
Issued Capital 94,08,50 94,08,50
(9,40,85,049 Equity Shares of Rs.10/-each)
Subscribed Capital 94,08,50 94,08,50
(9,40,85,049 Equity Shares of Rs.10/-each)
Called up Capital 94,08,50 94,08,50
(9,40,85,049 Equity Shares of Rs.10/-each)
Less: Calls Unpaid NIL NIL
Add: Forfeited Shares NIL Ni l
TOTAL 94,08,50 94,08,50
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
SCHEDULE – 2 - RESERVES AND SURPLUS
we are with you!Annual Report 2019-20
(Rs in '000s)
Particulars As on 31.03.2020 As on 31.03.2019
I. Statutory Reserve
Opening Balance 455 48 91 433 08 14
Additions during the Year 123 51 46 22 40 77
Deductions during the Year Nil Nil
TOTAL 579 00 37 455 48 91
II. Capital Reserve
Opening Balance 1 20 1 20
Additions during the Year 11 09 18 Nil
Deductions during the Year Nil Nil
TOTAL 11 10 38 1 20
III. Share Premium
Opening Balance Nil Nil
Additions during the Year Nil Nil
Deductions during the Year Nil Nil
TOTAL Nil Nil
IV. Revenue and other Reserve
Opening Balance 14 31 49 14 31 49
Additions during the Year Nil Nil
Deductions during the Year Nil Nil
TOTAL 14 31 49 14 31 49
V. Special Reserve u/s 36(1)(viii) of Income Tax Act,1961
Opening Balance 14 46 52 10 37 72
Additions during the Year 24 54 24 4 08 80
Deductions during the Year Nil Nil
TOTAL 39 00 76 14 46 52
VI. Investment Fluctuation Reserve
Opening Balance 15 98 66 3 10 55
Additions during the year Nil 12 88 11
Deduction during the year Nil Nil
Total 15 98 66 15 98 66
Balance in Profit and Loss Account
Opening Balance 1786 49 56
Additions During the year 61 18
Profit for the year 458 42 42
TOTAL 2245 53 16 1786 49 56
Grand Total 290 94 82 2286 76 34
69
SCHEDULE – 3 - DEPOSITS
SCHEDULE – 4 - BORROWINGS
(Rs in '000s)
(Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
A. I. Demand Deposits
i) From Banks 1 19 81 Nil
ii) From Others 158 64 04 186 14 30
II. Savings Bank Deposits 7195 92 99 6469 96 96
III Term Deposits
i) From Banks 1628 93 05 745 57 92
ii) From Others 9510 99 18 8654 26 39
TOTAL 18495 69 07 16055 95 57
B. i) Deposits of Branches in India 18495 69 07 16055 95 57
ii) Deposits of Branches Out Side India Nil Nil
TOTAL 18495 69 07 16055 95 57
Particulars As on 31.03.2020 As on 31.03.2019
I. Borrowings in India
i) Reserve Bank of India Nil Nil
ii) Other Banks 1346 42 40 2 12 83
iii) Other Institutions (NABARD,NHB & MUDRA)
a) NABARD 7066 31 23 6376 07 97
b) NHB 53 13 89 72 79 70
c) MUDRA Nil 20 00 00
II. Borrowings Outside India Nil Nil
TOTAL 8465 87 52 6471 00 50
70
SCHEDULE – 6 - CASH AND BALANCE WITH RESERVE BANK OF INDIA(Rs in '000s)
SCHEDULE – 5 OTHER LIABILITIES AND PROVISIONS
(Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
I Bills payable/Bankers Cheque 90 80 73 116 07 55
II Inter Office Adjustments (Net) 46 06 1 83 85
III Interest Accrued on Deposits 546 63 36 544 44 31
IV General Provisions:
a) Provision on Standard Assets 58 61 10 49 02 93
b) Standard Assets Provision-created on account of
moratorium 98 82 Nil
c) Frauds Provision 5 47 6 15
d) Audit Fee Provisions 84 00 80 00
e) Income Tax Provision 276 92 88 45 00 00
f) Pension Contribution fund provision 206 31 78 831 87 07
g) NPS Provision Nil 5 79 45
V Interest payables 57 30 27 74 41 86
VI TDS on Bank Term Deposits 9 01 73 9 13 48
VIII Deferred Taz Nil Nil
VIII Other Liabilities 67 64 24 51 16 86
TOTAL 1315 60 44 1729 63 51
Particulars As on 31.03.2020 As on 31.03.2019
I. Cash in Hand 104 04 90 149 93 45
II. Balances with Reserve Bank of India
i) In Current Account 530 74 92 661 01 08
ii) In Other Account NIL NIL
TOTAL 634 79 82 810 94 53
71
SCHEDULE – 7 - BALANCE WITH BANKS AND MONEY AT CALL & SHORT NOTICE(Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
I. In India
i. Balance with Banks
a) In Current Accounts 41 04 75 7 44 33
b) In Other Deposit Accounts (TDRs) 81312195 4487 35 80
ii. Money at Call & Short Notice
a) With Banks Nil Nil
b) With Other Institutions Nil Nil
TOTAL 8172 26 70 4494 80 13
II. Outside India
a) In Current Accounts Nil Nil
b) In Other Deposit Accounts Nil Nil
c) Money at Call & Short notice Nil Nil
TOTAL Nil Nil
TOTAL (I&II) 8172 26 70 4494 80 13
72
SCHEDULE – 8 - INVESTMENTS (Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
I Investment in India
i) Government Securities 3753 85 35 5317 05 60
ii) Other Approved Securities Nil Nil
iii) Shares Nil Nil
iv) Debentures and Bonds Nil Nil
v) Subsidaries and /or joint Ventures Nil Nil
vi) Investment in Equity shares of National
Payment Corporation of India (Long Term) 24 99 24 99
vii) Others 84 75 00 75 00 00
TOTAL 3838 85 34 5392 30 59
II Investments Outside India
i) Government Securities Nil Nil
(Including Local Authorities) Nil Nil
ii) Subsidiaries and/or Joint Ventures Nil Nil
iii) Other Investments (To Be Specified) Nil Nil
TOTAL Nil Nil
TOTAL (I&II) 3838 85 34 5392 30 59
73
SCHEDULE – 9 - ADVANCES(Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
A. 1. Bills Purchased and Discounted Nil Nil
2. Cash Credits, Overdrafts and Loans
Repayable on Demand 12364 79 42 11222 27 26
3. Term Loans 4869 67 53 3612 65 42
TOTAL (A) 17234 46 95 14834 92 68
B.1. Secured by Tangible Assets 17234 46 95 14780 12 50
2. Covered by Bank / Government Guarantees Nil Nil
3. Unsecured Nil 54 80 18
TOTAL (B) 17234 46 95 14834 92 68
C.I. Advances in India
1. Priority Sector 15486 53 15 12714 73 40
2. Public Sector Nil Nil
3. Banks Nil Nil
4. Others 1747 93 80 2120 19 28
TOTAL (C.I) 17234 46 95 14834 92 68
C.II. Advances Outside India
1. Due from banks Nil Nil
2. Due from Others Nil Nil
TOTAL (C.II) Nil Nil
GRAND TOTAL (C.I+C.II) 17234 46 95 14834 92 68
74
SCHEDULE – 10 - FIXED ASSETS (Rs in '000)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
I. Land
At cost as on the 31st March of the Preceding Year 9 57 9 57
Additions During the Year Nil Nil
Deductions During the Year Nil Nil
TOTAL 9 57 9 57
II. Buildings
At cost as on the 31st March of the Preceding Year 161 60 1 57 28
Additions During the Year 8 47 49 4 32
Deductions During the Year Nil Nil
st Depreciation as on 31 March of the preceding year 5 00 2 24
Depreciation during the year 6 90 2 77
TOTAL 9 97 19 156 59
III. Other Fixed Assets (including Furniture and Fixtures)
At cost as on the 31st March of the Preceding Year 128 46 54 120 39 77
Additions During the Year 18 67 57 10 13 34
Deletions During the Year 3 15 18 2 06 57
Depreciation upto the preceding year 78 83 65 70 28 19
Depreciation during the year 10 51 87 9 67 77
Depreciation on deletions 2 56 09 1 12 31
TOTAL 57 19 50 49 62 89
IV. Capital Work in Progress
At cost as on the 31st March of the Preceding Year 8 57 61 5 52 25
Additions During the Year 67 08 3 05 37
Deletions During the Year 8 01 09 Nil
TOTAL 1 23 60 8 57 62
TOTAL (I+II+III+IV) 68 49 86 59 86 67
75
SCHEDULE – 11 - OTHER ASSETS(Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
SCHEDULE – 12 - CONTINGENT LIABILITIES (Rs in '000s)
we are with you!Annual Report 2019-20
Particulars As on 31.03.2020 As on 31.03.2019
1. Inter Office Adjustments (Net Nil Nil
2. Interest Accrued on investment 252 50 41 187 02 10
3. Advance Tax 397 00 00 170 00 00
4. Tax Deducted at Source 46 54 30 96
5. Stationery 64 70 50 93
6. Telephone Deposit 4 19 Nil
7. Subvention receivable from NABARD 607 53 13 620 16 75
8. Interest incentive receivable from NABARD Nil Nil
9. Interest Subvention Received from GOI (NRLM) Nil Nil
10. Prepaid Expenses - Insurance 3 17 68 3 33 18
11. Income Tax paid against Disputed Demand 45 23 88 44 07 73
12. Deferred Tax 1 85 81 75 65
13. Others 18 85 34 18 42 52
Total 1327 31 68 1044 59 82
Particulars As at 31.03.2020 As at 31.03.2019
Claims against the Banks not acknowledged as debts 53 58 29 18 45 00
Liabilities for partly paid Investments Nil Nil
Liabilities on account of outstanding forward exchange contracts Nil Nil
Guarantees Given on behalf of Constituents
a) In India 10 89 00 11 38 84
b) Out Side India Nil Nil
Acceptances, Endorsements and other Obligations Nil Nil
Other items for which the Bank is contingetly liable
(DEA Fund) 3 40 91 1 43 08
Unclaimed Bankers Cheques (treated as income in
earlier years) 27 45 27 45
TOTAL 68 15 65 31 54 37
76
SCHEDULE – 13 - INTEREST EARNED(Rs in '000s)
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
Particulars Year Ended 31.03.2020
st Schedules forming Part of Balance Sheet As on 31 March 2020
Year Ended 31.03.2019
SCHEDULE – 14 - OTHER INCOME (Rs in '000s)
Particulars Year Ended 31.03.20
SCHEDULE – 15 - INTEREST EXPENDED(Rs in '000s)
Year Ended31.03.2017
(Previous Year)
Particulars
Year Ended 31.03.19
Year Ended 31.03.20 Year Ended 31.03.19
we are with you!Annual Report 2019-20
Interest/ Discount on Advances/Bills 1972 97 85 1728 79 81
Interset on Investments 329 61 35 398 81 15
Interest on Balances with RBI and Other Inter Bank Funds Nil Nil
Others 300 92 13 241 76 63
TOTAL 2603 51 33 2369 37 59
Commission, Exchange and Brokerage 253 15 84 237 39 44
Profit on Sale of Investment 40 67 44 14 49 56
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 abroad /In India Nil Nil
Miscellaneous Income 116 09 72 36 06 22
TOTAL 40 99 300 287 95 22
77
Interest on Deposits 1007 44 33 851 28 19
Interest on Reserve bank of India / Inter Bank Borrowings 383 02 92 471 64 75
Others Nil Nil
TOTAL 1390 47 25 1322 92 94
SCHEDULE – 16 - OPERATING EXPENSES(Rs in '000s)
Andhra Pradesh Grameena Vikas Bank
Head Office: Warangal
st Schedules forming Part of Balance Sheet As on 31 March 2020
Particulars Year Ended 31.03.2020 Year Ended 31.03.2019
we are with you!Annual Report 2019-20
78
Salary Payments and Provisions to Employees 266 88 73 221 75 58
Gratuity Contribution Fund Nil 4 78 49
Leave Encashment Fund Nil 8 83 64
Pension Contribution Fund NIl 23 30 00
Director’s Fee, Allowances and Expenses Nil Nil
Medical Expenses 5 31 05 7 43 28
Leave Fare Concession 6 55 8 19
Rent, Taxes, Lighting and Fuel 19 06 91 16 88 74
Printing and Stationery 7 83 16 5 22 56
Advertisement and Publicity 21 33 16 12
Depreciation on Banks Property 10 58 77 9 70 54
Auditors Fee and Expenses 77 68 72 70
Legal Charges 10 77 1815
Telephone Charges 73 12 1 16 34
Repairs and Maintenance 13 64 23 09
Insurance 21 58 24 15 40 65
Traveling and Halting expenses 8 06 53 7 44 32
AMC for Software and Hardware 18 83 79 15 31 07
Books and Periodicals 94 10 89 70
Computerization 45 04 53 50
Vehicle and Fuel 2 20 49 1 76 22
Entertainment 82 60 78 59
Other Expenses (Sundries) 45 32 56 33 61 52
TOTAL 409 95 06 376 22 99
SCHEDULE – 17 - SIGNIFICANT ACCOUNTING POLICIES
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
A. Basis of Preparation:
The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis of
accounting on going concern basis, unless otherwise stated and conform 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 the practices prevalent in the
banking industry in India.
B. Use of estimates:
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 preparation of the financial statements are prudent and reasonable. Future results could differ
from to these estimates.
C. Significant Accounting Policies:
1. Revenue Recognition:
1.1. Income and Expenditure are accounted on accrual basis, except otherwise stated.
1.2. Interest income is recognised in the Profit and Loss Account as it accrues except, (i) 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. (ii) overdue interest on investments
and bills discounted, (iii) Income on Rupee Derivatives designated as "Trading", which are accounted on
realisation.
1.3. Profit / loss on sale of investments is recognised in the Profit and Loss Account.
1.4. Income (other than interest) on investments in "Held to Maturity (HTM)" category acquired at a discount to
the face value is recognised only at the time of sale / redemption.
1.5. Commission & Exchange and Locker rent have been recognized on realization basis.
1.6. Interest on overdue term deposits is accounted for on renewal basis.
1.7. 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.
2. Investments:
The transactions in Government Securities are recorded on “Settlement Date”. Investments other than
Government Securities are recorded on “Trade Date”.
2.1. Classification: Investments are classified into three categories viz., Held to Maturity (HTM), Available for Sale
(AFS) and Held for Trading (HFT) as per RBI guidelines.
we are with you!Annual Report 2019-20
79
2.2. Basis of classification:
I. Investments that the Bank intends to hold till maturity are classified as Held to Maturity (HTM).
II. Investments that are held principally for resale within 90 days from the date of purchase are classified as Held
for Trading (HFT).
III. Investments, which are not classified in the above two categories, are classified as Available for Sale (AFS).
IV. 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.
2.3. Valuation:
i). In determining the acquisition cost of an investment:
a) Brokerage or Commission received on subscriptions is reduced from the cost.
b) Brokerage, Commission, Securities Transaction Tax (STT) etc., paid in connection with acquisition of
investments are expensed upfront and excluded from cost.
c) Brooking period interest paid / received on debt instruments is treated as interest expense / income and is
excluded from cost or sale consideration.
d) 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.
ii) 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 acquisition price / book value. After
transfer, these securities are immediately re-valued and resultant depreciation, if any, is provided
iii) Treasury Bills and Commercial Papers are valued at carrying cost.
iv) Held to Maturity category:
a) 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”.
b) 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.
v) Investments under AFS and HFT category: Investments under AFS and HFT category are individually re-valued at
market price or fair value determined as per regulatory guidelines, and only the net depreciation of each group for
each category (viz., (i) Government securities (ii) Other Approved Securities, (iii) Shares, (iv) Bonds and
debentures, and (v) others) is provided for and net appreciation, is ignored. On provision for depreciation, the book
value of individual security remains unchanged after marking to market.
vi) Investments are classified as Performing and Non Performing investments, based on the guidelines issued by the
RBI. Investments of domestic offices become non performing where:
a) Interest or instalment (including maturity proceeds) is due and remains unpaid for more than 90 days.
b) 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 would be reckoned as
we are with you!Annual Report 2019-20
80
NPI.
3. Loans or Advances and Provisions thereon:
3.1. Loans and advances are classified as performing and non-performing, based on the guidelines/ directives issued by
the RBI. Loan assets become Non Performing Asset (NPA) where:
i) In respect of agriculture advances:
a) For short duration crops, where the instalment of principal or interest remains overdue for two crop seasons,
and
b) For long duration crops, where the principal or interest remains overdue for one crop season.
ii) In respect of Non Agriculture advances:
a) In respect of term loans, interest and / or instalment of principal remains overdue for a period of more than 90
days.
b) 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
debited during the same period.
3.2. All advances have been classified under four categories i.e., Standard Assets, Sub-standard Assets, Doubtful Assets
and Loss Assets. Provisions are made as per the extant guidelines/directives prescribed by the RBI.
Provisions on Advances are made as under:
I Standard Assets: 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%
Housing Loans >20.00 lacs @ 0.75%
All other advances not included in (1) & (2) above at 0.40%
II Sub-Standard Assets:
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).
III Doubtful Assets:
A loan asset that has remained in the sub-standard category for a period of 12 months is Doubtful Asset
we are with you!Annual Report 2019-20
Secured Portion Up to One year 25%
One to three years 40%
More than three years 100%
Unsecured Portion 100%
81
5.3. Depreciation is provided on straight line method as per the following rates:
we are with you!Annual Report 2019-20
Description of Fixed Asset Depreciation rates
Buildings 1.6667%
Furniture & Fixtures other than Electrical Fittings and
Fixtures 10%
Electrical Fittings with 3 years life 33.33%
Electrical Fittings with 5 years life 20%
Electrical Fittings with 10 years life 10%
Safe Deposit Lockers, Fire proof data safe 5%
Computer systems & ATMs 33.33%
Computer software which does not form an integral part of 33.33%
computer hardware and cost of software development
Vehicles 20%
82
5.4. In respect of assets acquired during the year (for domestic operations), depreciation is charged on
proportionate basis for the number of days the assets have been put to use during the year.
5.5. Assets costing less than Rs. 5,000 each are charged off in the year of purchase.
6. Impairment of Assets:
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 by the
asset. If such assets are 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.
7. Employee Benefits:
7.1. Short Term Employee Benefits:
The undiscounted amount of short – term employee benefits, such as medical benefits etc., which are
expected to be paid in exchange for the services rendered by employees, are recognized during the period
when the employee renders the service.
7.2. Long Term Employee Benefits
i). Defined Benefit Plans:
a. Gratuity:
The Bank provides for Gratuity liability based on actuarial valuation for all the eligible employees. The benefit is in
the form of lump sum payments to vested employees on retirement, or on death while in employment, or on
we are with you!Annual Report 2019-20
83
termination of employment, for an amount equivalent to 15 days basic salary payable for each completed year of
service, subject to the cap prescribed by the Statutory Authorities. Vesting occurs upon completion of five years of
service. The Bank makes periodic contributions to a fund administered by Trustees based on an independent
external actuarial valuation carried out annually, and contributes to SBI Life Insurance Company Limited.
b. Leave Encashment:
The Bank provides for Leave Encashment liability. The benefit is in the form of lump sum payments to vested
employees on retirement, or on death while in employment and vesting occurs at different stages as per rules. The
Bank makes periodic contributions based on an independent external actuarial valuation carried out annually, and
contributes to SBI Life Insurance Company Limited.
c. Pension:
As per the order of Hon’ble Supreme Court of India, the Bank provides for pension to all eligible employees. The
benefit is in the form of monthly payments as per the rules to vested employees on retirement or on death while in
employment, or on termination of employment. Vesting occurs at different stages as per rules. The pension
liability is reckoned based on an independent actuarial valuation carried out and Bank makes such initial
contributions periodically to the Fund as may be required to secure payment of the benefits under the pension
regulations.
d. The cost of providing defined benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at each balance sheet date.
ii) Defined Contribution Plans such as Provident Fund are recognized as an expense and charged to the Profit &
Loss Account on accrual basis.st iii) The Bank operates New Pension System (NPS) for all staff joined on or after 1 April 2018 and
st ststaff joined be between 1 April 2010 and 31 March 2018 and opted for NPS, which is a defined Contribution
Plan. As per the scheme employees contributes 10% of their basic pay and DA together with matching
contribution from the Bank.
iv) Other Long Term Employee benefits:
All eligible employees of the Bank are eligible for leave fare concession, home travel concession. The costs of such
long term employee benefits are debited to Profit & Loss account of the Bank, in the year of expense incurred.
8. Taxes on Income:
Income Tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Bank.
Current tax 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 which are
based on the tax laws prevailing in India. Deferred tax adjustments comprise of changes in the deferred tax assets
or liabilities during the year.
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 on management’s judgement as
to whether their realisation is considered as reasonably certain. Deferred Tax Assets are recognised on carry
we are with you!Annual Report 2019-20
84
forward of unabsorbed depreciation and tax losses only if there is virtual certainty supported by convincing
evidence that such deferred tax assets can be realised against future profits.
9. Contingent Liabilities & provisions:
9.1 In conformity with AS – 29, “Provisions, Contingent Liabilities and Contingent Assets”, issued by
the ICAI, the bank recognises provisions only when it has a present obligation as a result of a past event, and
would result in a 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.
9.2. 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; or
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 obligations are 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). Contingent Assets are not recognised in the financial statements.
10. Special Reserves:
Revenue and other Reserve include Special Reserve created under Section 36(i)(viii) of the Income Tax
Act, 1961
SCHEDULE – 18 DISCLOSURES & NOTES TO ACCOUNTS
I. Disclosures as per norms for RRBs
1. Capital
2. Investments
3. Repo Transactions
Minimum Maximum Daily Average As onst outstanding outstanding outstanding 31
during the during the during the March, year year year 2020
Securities Sold under Repos Nil Nil Nil Nil
Securities purchased under Nil Nil Nil Nil Reverse Repos
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.
Andhra Pradesh Grameena Vikas BankHead Office: Warangal
we are with you!Annual Report 2019-20
Sl.No Particulars March 2020 (%) March 2019 (%)
i) CRAR(%) 16.15 15.50
ii) CRAR – Tier I Capital 15.75 15.09
iii) CRAR – Tier II Capital 0.40 0.41
iv) Percentage of Shareholding of the :
A Government of India 50 50
B Government of Andhra Pradesh 15 15
C State Bank of India (Sponsor Bank) 35 35
S.No Particulars March 2020 March 2019
1 Value of Investments
i) Gross value of Investments 3838 85 34 5392 30 59
ii) Provisions for Diminution 15 98 66 15 98 66
iii) Net value of Investments 3822 86 68 5376 31 93
2 Movement of provisions held towards depreciation on investments
i) Opening Balance 15 98 66 3 10 55
ii) Add: Provisions made during the year Nil 12 88 11
iii) Less: Write off / Write back of excess provisions during the year Nil Nil
iv) Closing Balance 15 98 66 15 98 66
85
4. Non-SLR Investment Portfolioi) Issuer composition of Non SLR Investments
(ii) Non-Performing Non-SLR Investments
Particulars Amount
Opening balance NIL
Additions during the year since 1st April 2019 NIL
Reductions during the above period NIL
Closing Balance NIL
Total provisions held NIL
(Rs in thousands)
5. Asset Quality
S.No. Particulars March 2020 March 2019i) Net NPAs to Net Advances (%) 0 0.34ii Movement of NPAs (Gross) (a) Opening balance 189 09 93 195 64 24(b) Additions during the year 426 90 81 293 46 36(c) Reductions during the year 417 51 16 300 00 67(d) Closing balance 198 49 58 189 09 93iii Movement of Net NPAs (a) Opening balance 55 61 61 28 02 81(b) Additions during the year 131 36 74 75 53 99(c) Reductions during the year 186 98 35 47 95 29(d) Closing balance 0 55 61 61iv Movement of provisions for NPAs (Excluding provisions on standard assets) (a) Opening balance 133 48 32 167 61 44(b) Provisions made during the year 102 73 89 11 63 07(c) Write-off / Write-back of excess provisions 37 72 64 45 76 19(d) Closing balance 198 49 57 133 48 32
I. Non-Performing Assets (Rs in '000s)
(Rs in thousands)
During the year the Bank has fully provided provision on all NPA Accounts.
we are with you!Annual Report 2019-20
S. No Issuer Amount Extent of Extent of Extent of Extent of Private below investment unrated unlisted placement grade securities securities securities
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
& Equity shares of
NPCI) 84 99 99 NIL NIL NIL NIL
vi) Provisions held towards NIL NIL NIL NIL NIL depreciation
Total 84 99 99 NIL NIL NIL NIL
86
ii. Details of Loan Assets subject to Restructuring
iii) Details of financial assets sold to Securitization (SC) / Reconstruction Company (RC)for Assets Reconstruction
S.No Particulars March 2020 March 2019
i No. of accounts Nil Nil
ii Aggregate value (net of provisions) of accounts sold to SC/RC Nil Nil
iii Aggregate consideration Nil Nil
iv Additional consideration realized in respect of accounts
transferred in earlier years Nil Nil
v Aggregate gain / loss over net book value Nil Nil
Total (i) = (ii) + (iii) + (iv) Nil Nil
IV) Details on non-performing financial assets purchased / sold A. Details of non-performing financial assets purchased:
S.No Particulars March 2020 March 2019
1 (a) No. of accounts / purchased during the year Nil Nil
(b) Aggregate outstanding Nil Nil
2 (a) Of these, number of account restructured during the year Nil Nil
(b) Aggregate outstanding Nil Nil
B. Details of non-performing financial assets sold :
S.No. Particulars March 2020 Marh 2019
1 No. of accounts sold Nil Nil
2 Aggregate outstanding Nil Nil
3 Aggregate consideration received Nil Nil
(Rs in thousands)
(Rs in thousands)
(Rs in thousands)
(Rs in '000s)
S.No Particulars March 2020 March 2019
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
Total (i) = (ii) + (iii) + (iv) Nil Nil
we are with you!Annual Report 2019-20
87
v. Provisions on Standard Assets
S.No. Particulars March 2020 March 2019
1 Provisions on Standard Assets 59 59 92 49 02 99
6. Business Ratios
S.No Particulars March 2019 March 2018
i Interest income as a percentage to Working Funds 9.33 9.32
ii Non-Interest income as a percentage to Working Funds 1.47 1.13
iii Operating profit as a percentage to Working Funds (Before Provisions) 4.35 3.75 iv Returns on Assets (%) 2.21 0.44
v Business per Employee (Dep + Adv) (Rs'000) 11 44 29 10 28 43
vi Net profit per Employee (Rs'000) 18 69 3 52
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 1019 67 29 350 79 21 1551 47 78 2092 87 04 5019 60 11 8179 06 49 159 15 81 123 05 34 18495 69 07
Advances 4518 27 41 114 41 53 615 70 71 1188 41 73 5772 66 32 29 49 10 30 45 06 4965 04 00 17234 45 86
Investments & STDRs
0 489 65 1364 79 72 3152 88 25 2839 0810 1043 97 53 60 24 27 8465 87 52Borrowings
9794 1650 00 00 3940 87 00 2007 85 00 175 25 00 108 38 35 11970 07 29
Foreign Currency Assets
Nil 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 thousands)
3644 74 00
0
442 00 00
we are with you!Annual Report 2019-20
88
8. Exposures – Exposure to Real Estate Sector
S.No Particulars March 2020 March 2019
a Direct exposure
i Residential Mortgages above Rs. 20.00 lakhs lending fully secured by mortgages on residential property that is or will be 1423 88 44 884 87 99 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 1222 42 99 1006 99 08
ii Commercial Real Estate Lending secured by mortgages on commercial real estates 1097 75 Nil (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 Nil Nil
a. Residential Nil Nil
b. Commercial Real Estate Nil Nil
b Indirect Exposure Nil Nil
Fund-based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs) Nil Nil
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 March 2020 March 2019
Provision for Income Tax 276 92 88 45 00 00
11. Disclosure of Penalties imposed by RBI
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.
12. Additional Disclosures as per Accounting Standards applicable to the Bank
(i) Related party disclosure
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
(Rs in thousands)
(Rs in thousands)
we are with you!Annual Report 2019-20
89
st stParticulars 31 March 2020 31 March 2019
Refinance received from State Bank of India Nil Nil
Interest paid to SBI 4 07 46 68 81 42
Investments made with:
SBI - in the form of STDRs 188 21 95 260 80 96
SBI Fund Management Private Limited 82 95 00 Nil
Interest received from SBI 20 62 64 27 36 43
Profit on sale of Investments on SBI 3 74 23 70 05
Contributions to Gratuity Fund with SBI Life Insurance Co. Ltd Nil 4 78 49
Contributions to Group Leave Encashment Policy withSBI Life Insurance Company Limited Nil 8 83 64
Contributions to Pension Trust Policy with SBI life InsuranceCompany Limited on behalf of Trust 225 28 10 Nil
Current Account Balance with SBI 8 27 3 48 98
(iii) Particulars of Managerial Remuneration:
Key Management Personnel
Shri K. Praveen Kumar, Chairman (From: 02.02.2019)
Shri G. Sukumar, General Manager –I
Shri Ch Sree Rama Somayaji, General Manager-II
Shri G. Nagaraju, General Manager – III
Shri P. Pardhasaradhi, General Manager – IV
Shri N. Venkata Ramana, General Manager – V (Chief Vigilance Officer)
Shri K. E. Subrahmanyamu, General Manager-VI
(ii) Particulars of related party accounts transactions:
The following is the summary of significant related party transactions:
st stParticulars For the year 31 March 2020 For the year 31 March 2019
Shri K. Praveen Kumar, Chairman 28 64 648/- 3 95 359/-
Shri.V.Narasi Reddy, Chairman Nil 26 22 045/-
Shri.M. Satyanaryana, General Manager - I 8 46 811/- 20 65 660/-
Shri.T.V.Krishna Reddy, General Manager - II 4 28 486/- 21 59 052/-
Shri.G.Nagaraju, General Manager - III 23 12 772/- 22 53 732/-
Shri K. Ravi Kiran, General Manager - IV 4 10 287/- 20 82 712/-
Shri N. Venkata Ramana, General Manager - V 23 13 436/- 3 78 438/-
Shri P.Pardhasaradhi General Manager IV 19 30 755/- Nil
Shri Gouru Sukumar General Manager I 14 87 826/- Nil
Shri Ch Srirama Somayaji General Manager II 12 97 523/- Nil
Shri Eswara Subrahmanyamu Karri General Manager VI 11 32 315/- Nil
(Rs in thousands)
(in Rupees)
we are with you!Annual Report 2019-20
90
13. Provisions on Rural Advances
14. Disposal of Complaints:
A) Customer Complaints:
S.No Particulars IT NON IT TOTAL
a No. of complaints pending at the beginning of the year 19 7 26
b No. of complaints received during the year 2018-19 1,506 595 2,101
c Total Complaints 1,525 602 2,127
d No. of complaints redressed during the year 1,495 577 2,072
e No. of complaints pending at the end of the year 30 25 55*
B) Award passed by the Banking Ombudsman:
S.No Particulars Nos
a No. of complaints pending at the beginning of the year 05
b No. of complaints received during the year 2019-20 82
c Total Complaints 87
d No. of complaints redressed during the year 77
e No. of complaints pending at the end of the year 10*
f No. of awards passed by Banking Ombudsman 0
g No of awards implemented Not applicable
h No. of awards pending implementation Not applicable
(Rs in thousands)
2. Concentration of Advances (Rs in Crores)
Total Advances of Twenty largest Borrowers 23.47
Percentage of Advances of twenty largest borrowers to Total Advances of the Bank 0.12%
S.No. Particulars March 2020 March 2019
a Opening balance in the Rural Advances Provision Account Nil 10 67 36
b The quantum of Rural Advances Provision made in the accounting year Nil Nil
c i. Amount of Draw down made during the accounting year Nil Nil
ii. Provision written back to profit and Loss account Nil 10 67 36
iii. Total of Draw down Nil Nil
d Closing balance in the Rural Advances Provision Account Nil Nil
* Out of 7, 6 complaints were closed during the 1st week of April 2019
15. Concentration of Deposits Advances Exposures and NPAs
1.Concentration of Deposits (Rs in Crores)
Total Deposits of Twenty largest depositors 2309.52
Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 12.49%
we are with you!Annual Report 2019-20
91
Sub-Total (B)
Total (A+B)1946.43 8.08 0.42% 1444.90 7.71 0.53%
19322.96 198.50
1.03% 16658.41
189.10 1.14%
16. Sector Wise NPAs (Rs. in Cr)
Sl. No Sector*
Current Year (March 2020) Previous Year (March 2019)
OutstandingTotal Advances
Gross NPAsPercentage of Gross NPAs to Total Advancesin that Sector
Percentage of Gross NPAs to Total Advancesin that Sector
A Priority Sector
1 Agriculture and allied activities
13154.83 130.92 1.00% 11169.16 109.54 0.98%
2. Advances to industries sector eligible as priority sectorlending
2263.34 43.80 1.94% 2012.68 37.94 1.89%
3 Services 71.59 5.98 8.35% 60.18 6.83 11.35%
4 Personal Loans 1886.77 9.72 0.52% 1971.49 27.08 1.37%
Sub-Total (A) 17376.53 190.42 1.10% 15213.51 181.39 1.19%
B Non-PrioritySector
1 Agriculture and allied activities -
-
-2 Industry
3 Services
4 Personal loans 1946.43 8.08 0.42% 1444.90 7.71 0.53%
OutstandingTotal Advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Gross NPAs
3. Concentration of Exposures (Rs in Crores)
Total Exposure of Twenty largest Borrowers/Customers 27.56
Percentage of Exposures to twenty largest Borrowers/Customers to Total Exposure of the Bank on borrowers / customers 0.14%
4. Concentration of NPAs (Rs in Crores)
Total Exposure to top four NPA accounts 1.12 Cr, 0.56%
we are with you!Annual Report 2019-20
92
17. Movement of NPAs
II. NOTES TO ACCOUNTS
1. Reorganization of Area of Operations of the Bank:
The Bank has been formed vide Notification dated 31 March 2006 issued by Department of Economic Affairs st
(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).
Vide notification dated 20 October 2014 issued by the Department of Financial Services, Ministry of Finance, th
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.
st2. Classification of Assets (Advances) as on 31 March, 2020: (Rs in thousands)
3. Inter Bank Participation Certificate (IBPC):
The Bank has entered into Risk sharing participation Contract with State Bank of India (Sponsor Bank) under Inter
Bank Participation Certificate (IBPC) and issued priority sector advances to the extent of Rs. 590 Crore on
28.06.2019 for the period of 179 days as cash pay-out and matured on 24.12.2019.During this financial year, the
Bank issued priority sector advances to an extent of Rs. 1100 Crore on 24.09.2019 for the period of 179 days as cash
pay-out to the HDFC Bank and matured on 26.03.2020 . Further, again during the year, the Bank issued priority
sector advances to an extent of Rs. 590 Crore on 26.12.2019 for the period of 180 days as cash pay-out with a
maturity date 23.06.2020 and also issued priority sector advances of Rs. 1300 Crore on 24.03.2020 for the period of
180 days as cash pay–out, with a maturity date 20.09.2020 to HDFC Bank.
Classification Gross Advances Net Advances
Standard Assets 19124 46 95 19064 87 03
Sub Standard Assets 81 38 93 0
Bad & Doubtful Assets 117 10 64 0
Total 19322 96 52 19064 87 03
Add: Provision on Sub-Standard And Doubtful Assets etc 198 49 57
Total Gross Advances 19263 36 60
Particulars Rs. in CroresstGross NPAs as on 1 April 2019 (Opening Balance) 189.10
Additions (Fresh NPAs) during the year 426.90
Sub-Total (A) 616.00
Less:
(I) Upgradations 345.30
(ii) Recoveries (excluding recoveries made from upgraded accounts) 35.47
(iii) Write-Offs 36.73
Sub-Total (B) 417.50stGross NPAs as on 31 March 2020 (Closing Balance) (A-B) 198.50
During the year the Bank has fully provided provision on all NPA Accounts.
we are with you!Annual Report 2019-20
93
(Rs in 000s)
PSLC Sold PSLC Purchased Net Profit earned
during the YearTotal Sold
8800.00 6250.00
Premium Received
127.925
Premium Paid
15.795 112.13
5. Bankers' Cheques:
The Unpaid Banker Cheques which were credited earlier years to P&L account aggregating to Rs.27,45 (in
thousands) furnished as contingent liability in Schedule 12.
6. Depositor Education and Awareness Fund (DEAF) Scheme:
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:
(Rs in 000s)
Sl No Particulars March 2020 March 2019
1 Opening Balance of Amount transferred to DEAF 1,43,08 1,34,98
2 Add: Amount transferred to DEAF during the Year 2019-20 1,98,00 8,33
3 Less: Amounts reimbursed by DEAF towards Claim 17 23
4 Closing balance of amounts transferred to DEAF 3,40,91 1,43,08
7. Fixed Assets:
The Bank is in possession of Land at various places in both Andhra Pradesh and Telangana states, to an extent of to
an extent of 9,432.26 square yards. Some of such lands were alienated by Government and some were donated by
individuals. The bank has also taken up constructions at some of the sites. All such expenditure/costs were
capitalized under lands and buildings. During 2018-19 an amount of Rs. 1,61,59 (thousand) was capitalized and an
amount of Rs. 8,75,61 (thousand) was in work in progress. During 2019-20, a further amount of Rs. 8,47,49
(thousand) was capitalized and work in progress came down to Rs. 12360 (thousand) from 85761(thousand).
8. Income Tax Matters:
Income Tax department has raised certain demands on the Bank, with regard to assessment of income of the Bank
and the tax payable thereon. The Bank is contesting demands raised by the Income Tax Department and pursuing
the same. Against the said tax demands based on the opinion obtained from the tax consultant, the Bank
recognized an amount aggregate to Rs. 53,58,29 (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. 45,23,88 (thousands) and the same is being shown in Schedule 11 – “Other Assets -
Income Tax paid against Disputed Demand”. Bank is confident of resolving the dispute in its favour. Liability, if any,
will be charged to Profit and Loss account in the year of settlement of these disputes / claims.
Total Purchased
4. Priority Sector Lending Certificate (PSLC):
During the Financial year, the Bank has sold and purchased following priority sector advances on various dates and
earned profit of Rs.112.13 crores. The PSLC is valid upto 31.03.2020.
we are with you!Annual Report 2019-20
94
10. Fraud Cases:
Details of Fraud cases are as under:(Rs in 000s)
11. The figures mentioned in Balance Sheet, Profit & Loss Account and Schedules 1 to 16 have been rounded off to the
nearest thousand rupees. Previous Year's figures have been regrouped /reclassified/recast wherever necessary to
confirm the current year classification.
12. Note on COVID-19:
The onset and rapid propagation of COVID-19 has caused disruptions in the banking operations, restrictions on
travel, meetings and access to client locations and other practical difficulties. There is a high level of uncertainty
about the duration of the lockdown and the nature of the restrictions, limitations, regulatory requirements,
existing business environment, materiality and their possible impact on the banking operations. In this regard
certain regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by
disruptions and to ensure the continuity of viable businesses. In assessing whether the going concern assumption is
appropriate, the management has considered all available information about the future, which is at least, but is not
limited to, twelve months from the end of the reporting period, the anticipated government support and provisions
held by the bank. In view of these matters the management is of the opinion Financial statements are normally
prepared on the assumption that the bank is a going concern and will continue in operation for the foreseeable
future.
Particulars 31 March 2020 31 March 2019
Provision at the beginning of the year 6.15 80.40
Less: Written off during the year Nil 15,89
Add: Additional provision created during the year Nil Nil
Less : Provision reversed (written back) during the year 68 58,36
Provision as at the year end 5.47 6,15
Number of fraud cases at the year end 25 23
9. Data Purification and Asset Classification
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, the Bank has a system of manual verification
for ensuring the correctness of base data fed. Management intends to continue such manual verification to ensure
compliance of the Income Recognition and Asset Classification norms and other statutory compliances.
we are with you!Annual Report 2019-20
95
Disclosures as required vide Circular No. RBI/2019-20/220 DOR.No.BP.BC.63/21.04.048/2019-20
April 17, 2020:
Particulars 31.03.2020 31.03.2019
Respective amounts in SMA/overdue categories, where the
moratorium/deferment was extended, in terms of paragraph
2 and 3; 1,97,640.75 Nil
Respective amount where asset classification benefits is extended. 1,97,640.75 Nil
Provisions made during the Q4FY2020 and Q1FY2021 in terms of
paragraph 5; 9,882.04 Nil
Provisions adjusted during the respective accounting periods
against slippages and the residual provisions in terms of
paragraph 6. Nil Nil
we are with you!Annual Report 2019-20
96
As per our report of even dateFor Rao & Kumar Chartered AccountantsFR No: 003089S
For Andhra Pradesh Grameena Vikas Bank
(CA. K S Vamsi Krishna) (Ch Sree Rama Somayaji) (K. Praveen Kumar)
Partner General Manager Chairman
M No : 229988
Place: Warangalth
Date: 10 May 2020
(Y Rambabu) (Sukanta K Sahoo) (Dinkar Argal)Director Director Director
(Bhuvanendra Takoor) (Satyanarayana, IRAS) (R Ravi)
Director Director Director