Bank of India Management Discussions

1. GLOBAL SCENARIO

The year 2023-24 was marked by an overall upturn in economic activity across the globe despite repeated and overlapping shocks and prevailing geopolitical tensions and increasing geo-economic fragmentation. Undoubtedly these challenges affected the pace of growth but resilience was observed in global economy driven by expansion in service sector and manufacturing. The result was fading fears of recession and gradual easing of inflationary pressure. The unprecedented monetary tightening followed by Central Banks throughout the world was continued, as inflation management continues to remain a top priority, but the policy rates were kept unchanged.

IMF, in its latest world Economic Outlook report(WEO) projected global growth to remain steady at 3.2% in 2024 as it was in 2023 and likely to maintain same pace in forthcoming years. While the advanced economies grew by 2.7%, the emerging market and developing economies grew by 4.2%. However there has been decline in the value of global trade during entire 2023 due to subdued demand in developed nations, trade weaknesses, volatile global financial conditions along with decline in commodity prices. There has been forecast of steady decline in Global Inflation from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025 providing tailwind to growth impulses.

2. DOMESTIC ECONOMIC SCENARIO:

Despite prevalence of geopolitical uncertainties, Indian economy exhibited optimism on the back of strong macroeconomic fundamentals and financial stability. Strong domestic demand, rural demand pickup, robust investment, sustained manufacturing momentum, sound banking sector, deleveraged corporate sector and improved consumer and investor confidence contributed to Indias resilience.

As per the second advance estimates of the National Statistical Office (NSO), Indian economy attained robust GDP growth of 7.6% in FY 2023-24 over and above 7% growth rate in FY 2022-23. Thus India emerged as the new growth engine of the global economy contributing approximately 16% to the overall growth dynamics and became fastest growing major economy of the world in 2023-24 with broad based growth across sectors.

Agriculture and allied sector registered growth of 0.7% in gross value added in the year 2023-24. The growth was hampered on account of decline in foodgrains production during kharif season and deficient rainfall.

Industrial output remained buoyant on the back of strong manufacturing sector powered by reforms and improved business sentiments. The industrial sector grew by 8.3% in 2023-24 as compared to growth of 5.1% last year. Manufacturing emerged as the strongest subsector with growth of 8.5%. On the other hand mining recorded growth of 8.1% and electricity generation depicted good growth of 7.5% in 2023-24.

Services sector remained the backbone of Indian economy with a contribution of over 70% to GVA growth. The sector maintained its momentum with a fillip from construction

activity fuelled by strong housing demand, trade, hotels, transport, communication and broadcasting and financial, real estate and professional services.

The Retail inflation measured by CPI witnessed a significant decline in FY 2023-24 reaching its lowest level since Covid-19 framework. The proactive monetary policy and positive action by the govt. such as reduction in petrol, diesel and LPG prices helped in inflation control .The headline inflation declined from 6.7% in FY 2022-23 to 5.4% in FY 2023-24 which is within the upper tolerance level of Inflation targeting framework. Though core inflation declined to its lowest level, food inflation remained a challenge at an elevated level.

Global slowdown and ongoing geopolitical tensions led to a moderation in Indias merchandise exports as well as merchandise imports. The slowing of trade has resulted in the narrowing of merchandise trade deficit in FY 2023-24 on account of smaller contraction in in exports as compared to imports.However,the non-petroleum and non-gems & jewellry merchandise exports have shown resilience and services exports expanded at their fastest pace in FY 202324 led by rising software exports and business service exports. This has led to improvement in Indias current account deficit (CAD) in the first nine months of the fiscal 2024 coupled with rising net services receipts and increasing inward remittances. Going forward, various international agencies and RBI expects the CAD to GDP to moderate below 1 % for FY 2023-24.

Indias robust economic performance, favourable business environment and strong macroeconomic fundamentals spurred remarkable capital inflows in FY 2023-24.The net Foreign Portfolio Investment(FPI) during FY 2023-24 was to the tune of USD 41 billion as against net outflows in the preceding two years. This is the second highest level of FPI inflow after FY 2014-15.India received the highest equity inflows among emerging market peers during FY 2023-24. However net Foreign direct investment(FDI) moderated to USD 25.5 billion in the first ten months of FY 2023-24 from USD 36.8 billion last year on account of rise in repatriation. Indias foreign Exchange reserves reached an all time high of USD 645.6 billion as of March 29,2024, adequate to cover 11 months of projected merchandise imports and more than 100 percent of total external debt.

On fiscal front, FY 2023-24 was remarkable in terms of expenditure rationalization and fiscal consolidation. The increased compliance, higher advance tax collections and widening of tax base led to robust double digit growth in direct tax collections which grew by 21.6% during April- February 2023-24, with income tax and corporate tax collections growing at 25.8% and 17.3% respectively. Indirect tax collections recorded growth of 4.8% led by Goods and Services tax collection and custom revenues. Gross fiscal deficit marked an improvement from 6.4% of GDP in FY23 to 5.9% of GDP in FY24 (as per revised estimates).

3. BANKING AND FINANCIAL SECTOR DEVELOPMENTS:

Indias buoyant economic landscape in FY 23-24 was supported by stable, sound and adequately capitalized banking sector and relatively stable domestic financial

markets. The banking system observed a higher credit offtake outpacing deposit expansion. While the advances grew by 20.18% against 15% in FY23, deposits lagged behind with growth rate of 13.48% against 9.6% during FY23. Positive business outlook, improvement in economic activity and merger of big bank enhanced credit growth. Moreover Public sector banks continued to be the major driver of incremental credit extended by all Scheduled Commercial Banks (SCBs) in 2023-24. Credit to Agriculture & allied sector registered growth of 20.1% in February 2024 from 15.0% last year, Industrial sector credit growth reached to level of 8.6%in February 2024 from 6.8% during last year and services sector credit achieved resilient growth of 21.2% in Feb 2024 as compared with 20.5% a year ago. However in the scenario of high Credit Deposit ratio and increased competition among banks, low cost deposit mobilization remains a big challenge.

The banking sector witnessed healthy balance sheet with strong profitability on the back of increase in Net Interest income during times of elevated interest rates, decline in credit costs and improved efficiency ratios like Return on assets and return on equity. With containment of slippages, better underwriting standards and consistent decline in GNPA and NNPA ratios across entire banking industry, there has been considerable improvement in asset quality of the banks in FY 2023-24.

The RBIs continued with the withdrawal of accommodative stance in the monetary policy for anchoring of inflationary expectations and kept the repo rates unchanged. For the first time in mid-September 2023, system liquidity turned into deficit mode after a gap of four and half years and the deficit continued in the wake of elevated government cash balances due to festival demand and state elections during H2. To effectively manage the situation of liquidity with an eye on growth, RBI injected liquidity through various Variable rate repo (VRR) operations to ease liquidity tightness in H2 and maintaining financial stability along with ensuring availability of adequate credit to productive sectors of the economy. The system liquidity smoothed in March end on account of increase in government spending with net liquidity adjustment facility(LAF) injection narrowing to Rs.0.29 lakh crore from Rs.1.78 lakh crore in Feburary 2024.

The G-sec yield initially softened during the first quarter of FY 2024 on account of steady decline in headline inflation, status quo on policy rates, better monsoon predictions. However in Q3 2023-24 the yields in the beginning firmed up but softened thereafter due to decline in crude oil prices, lower than expected retail inflation and proposed inclusion of Indian Government bonds in a major global emerging market index and decline in US yields. The 10 year benchmark yield declined from 7.20% in Q3 FY 24 to 7.07% in Q4 FY24.

The Rupee-USD exchange rate exhibited lowest volatility in FY 2023-24 compared to previous years and hovered in the range of Rs.82.00 to 83.15 per USD backed by financial stability, robust economic foundations and steady external sector performance. The Rupee remained relatively stable and least volatile major currencies among its emerging market peers and a few advance economies in FY 202324 despite a stronger US dollar and elevated US treasury yields.

The year 2023-24 was remarkable in terms of building a resilient India from a banking and economy perspective and includes numerous steps taken by the regulator and Govt. as well for promoting financial stability, risk management and crisis preparedness, sound corporate governance as well as adaptive regulation complemented by robust supervision. The endeavor of the Government is to boost capital expenditure and develop public private partnership with the vision of Viksit Bharat by 2047 in harmony with nature, modern infrastructure and opportunities for all. Further, in the interim Union Budget for 2024-25, Government has announced slew of measures including Rooftop Solarization, an additional coverage of 2 crore houses under Pradhanmantri Awas Yojana (Grameen), targeted increase in creating of Lakhpati Didis from 2Cr to 3Cr with help of Self Help Groups, specialised scheme of PM Formalization of Micro Food Processing Enterprises scheme (PMFME) which will lead to broad based growth and inclusive development. So in the present scenario, Bank being credit driver engine in the economy will play pivotal role through enhancing credit availability to different sectors fostering investment and in turn accelerating the growth rate of the economy.

BUSINESS REVIEW :

1. RESOURCE MOBILISATION

There has been an overall CASA growth of Rs.17,723 crore during current FY 2023-24 with a YoY growth of 7.03%. During the period the Saving Deposits have grown by Rs.15,163 crore with YoY growth of 6.85%. Bank has registered a bit higher growth in Current Deposits which has increased by Rs. 2,560 crore with YoY growth of 8.31%. The Term Deposit of the Bank has grown by Rs.44,931 crores with YoY growth of 14.27%. The Total Deposit of the Bank has grown by Rs.62,654 crore with YoY growth of 11.05%

A total of 38,007 new HNI Savings Customer were added to our Savings Portfolio whose average balance per accounts is Rs. 5,00,000 & above and the same has increased by 6.10% YOY contributing additional growth of Rs.5823 crore in overall Savings Portfolio of the Bank.

Similarly, a total of 3126 new Current Deposit of HNI customer were added to our Current Account Portfolio whose average balance per account is Rs. 2,00,000 & above and the same has increased by 2.47% YOY contributing additional growth of Rs.2948 crore in overall Current Deposit portfolio of the Bank.

With its continued focus on CASA & thrust on customer acquisition, CASA Ratio of the Bank stood at 43.21% at the end of FY 2023-24.

2. ADVANCES:

Banks Global Gross Advances improved from Rs. 5,15,852 crore as on 31.03.2023 to Rs. 5,85,595 crore as on 31.03.2024 showing an improvement of 13.52% Y-o-Y basis. Gross Domestic Credit registered a growth of 14.08% from Rs. 4,31,637 crore as on 31.03.2023 to Rs. 4,92,392 crore as on 31.03.2024. Gross Corporate Credit of the Bank improved from Rs. 1,94,100 crore as on 31.03.2023 to Rs. 2,17,915 crore as on 31.03.2024, registering growth of 12.27% Y-o-Y basis. Bank caters to specialised needs of Corporates/Mid Corporates through 9 Large Corporate Branches and other Large Branches headed by AGMs/

CMs. Further 18 branches have been identified as Emerging Corporate Credit Branches (ECCBs) at major cities. These Branches will cater to the needs of emerging corporates. Aligning itself with the concept “Digital Economy”, Bank has started issuance of Electronic Bank Guarantee (eBG).

3. RETAIL:

Total Retail loan segment grew at 18.12% and schematic retail growth of 17.67% during FY 2023- 24. We kept our special focus on Home Loans and vehicle loans during the year.

The Home loan segment during the year recorded a growth of 14.25% from Rs. 51,737 crore to Rs. 59,107 crore. The Vehicle Loan segment recorded growth of 22.96% from Rs. 13,534 crore to Rs.16,641 crore during the year.

We have a personal loan variant named Star Suvidha Express Personal Loan scheme for salaried customers, existing customers who have availed Home Loan, LAP & education loan and for pensioners. With this personal loan variant, the Personal Loan segment of the Bank recorded a growth of 40.93% from Rs. 6,909 crore as on 31.03.2023 to Rs. 9,737 crore as on 31.03.2024.

Bank has tie-up arrangement with Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Kia for vehicle loans. Similarly, tie-ups with Nobroker.com and Prop Tiger for home loans.

Bank also extends Personal Loans to employees of PSUs/ PSEs/Reputed Corporates/ Institutions under tie up arrangement with employer.

Apart from Home Loans, Vehicle loans & Personal Loans, we also extend Loan against Property and Education Loans.

Introduced a Digital journey for retail loans viz. Personal Loan, Vehicle Loan and Home Loan during the year.

4. MSME ( MICRO,SMALLL AND MEDIUM ENTERPRISES)

The MSME sector is the backbone of the Indian economy and plays an important role in the employment and income generation adding to the decentralize growth of the economy with low per capita investment. MSME Sector contributes 33% of GDP of Nation and around 50% of total exports.

Focus on programmes, such as Make in India, Start Up India, Digital India, Atmanirbhar Bharat and Ease Reforms have also brought major changes in MSME Credit at Banks Level.

The performance under MSME segment of the Bank is as under:

(Amt in crore)

GROSS MSME ADVANCES (EXCLUDING PWO & URI)
Particulars	Mar-23	Dec-23	Mar-24	Growth YOY	Growth YOY (%)
GROSS MSME	70777	76600	77877	7100	10.03%

Highlights of FY 2023-24:

• During the financial year up to 31^st March 2024, 4,57,934 new accounts have been added with sanctioned limit of Rs.24,580 crore. These accounts have outstanding of Rs.17,466 crore.

• Mudra Loan-During Financial year 23-24, bank has disbursed Rs.8580 crore against total sanction of Rs.9121 crore.

• TReDS- Bank has crossed outstanding limit of Rs.4000.00 crore and at the end of March24 it was Rs. 4142 crore.

• In order to amplify MSME portfolio and to penetrate the market of MSME loans, policy on Business Sourcing Associates (BSA) for sourcing MSME loans has started. The BSA shall work as our extended arms in the market who would connect the borrower to the Bank. The policy will allow appointment of BSAs for generating MSME business leads for the branches / SMECCs-UCs. 602 BSAs empanelled till date for mobilization of MSME business.

• SMECC/UC Revamping: The number of SMECCs & UCs increased to 116 and centralized processing of all proposals of Rs.10 Lakhs and above is being done smoothly.

• Bank has identified 3 Startup Branches which will cater to the needs of the Startup ecosystem.

• The department had received the prestigious “SKOCH AWARD 2023” for overall performance in MSME..

5. AGRICULTURE FINANCE: - Priority Sector Advances:

The bank is serving to the priority and agriculture sectors, through its network of rural and semi-urban branches. The Bank has registered an outstanding level of Rs 1,83,459 crore (44.10 % of March-24 ANBC) under Priority Sector Advances consisting of Agriculture Rs 84,445 crore (20.30% of March-24 ANBC). Out of which SF & MF Rs.53,362 crore (12.83% of March-24 ANBC), MSME Rs 75,605 crore out of which MSME Micro Rs. 43,128 crore (10.37% of March-24 ANBC), Education Rs 2,331 crore, Housing Rs 21,015 crore and other priority sector advances is Rs 12 crore. Bank has achieved the regulatory ratios under Priority sector, SF & MF, MSME Micro and credit to weaker sections for FY 2023-24.

(Amt in crore)

Particulars	Actual O/S Level March-23 (Audited)	Actual O/S Level Dec-23 (Audited)	Actual O/S Level March-24 (Audited)	Y-O-Y Growth (Mar 23/ Mar 24)		% of Mar- 24 Qtrs. ANBC	Regulatory Requirement
				Amt	%
ANBC	3,83,380	4,07,346	4,16,036
1) Agriculture	72,379	80,351	84,445	12,066	16.67	20.30	18
2) Small & Marginal Farmers	43,253	51,652	53,362	10,109	23.37	12.83	10
3) Micro Enterprises	43,137	45,497	43,128	-9	-0.02	10.37	7.6
Priority Sector	1,64,446	1,77,877	1,83,469	19,014	11.66	44.10	40

*Total Agriculture and Priority Sector includes outstanding of RIDF & PSLC

Under Agriculture, Bank branches disbursed Rs 43,171 crore, whereas under Small and Marginal Farmers total

disbursement during FY 2023-24 was Rs.32,084 crore. Bank has issued 1.55 lakhs Kisan Credit Cards during the year with credit limits of Rs 3,645 crore for flexible credit utilization. Banks credit exposure to the Minority Communities is Rs 15,865 crores as on March 24 (8.65% of Priority Sector Lending). Amount O/s as on 31.03.2024 under weaker section is Rs. 66,287 crore (15.93 % for FY 23-24). Banks finance to Food & Agro Industries as on 31.03.2024 is Rs. 8,861 crore.

Gold Loan: Gold loans registered incremental growth of Rs.5,387 crore during FY 23-24 and stood at Rs. 27,553 crore as on 31.03.2024.

Self Help Groups (SHGs): Bank has customer base of 7.10 lakhs Self Help Groups (SHGs) as on 31.03.2024 of which 3.28 lakhs SHGs are credit linked including 2.97 lakhs women SHGs as on 31.03.2024.

National Rural Livelihood Mission (NRLM): It is an

important poverty eradication programme for rural poor. During the year Bank has sanctioned amount of Rs 6,023.81 crore to 1.04 lakhs SHGs.

Star Krishi Vikas Kendra (SKVK) - Presently, 150 SKVKs are functional in 62 Zones across all 13 FGMOs. SKVK disbursed Rs.13,757 crore in last FY 2023-24. In addition to this, 111 Agri Desks are operationalized in SMECC/UC for focused & quality growth in agriculture.

Lead Bank Scheme: The Bank has Lead Bank responsibility in 51 districts spread across five states of Jharkhand (15), Maharashtra (14), Madhya Pradesh (13), Uttar Pradesh (7) and Odisha (2). The Bank is convener of the State Level Bankers Committee (SLBC) in the state of Jharkhand.

6. FINANCIAL INCLUSION:

Bank considers Financial Inclusion as a viable business proposition and has shifted outlook from “CSR” to “economic viability”. ICT based solution to support and secure sufficiently low cost transactions required by the financial sector. Financial inclusion drive gained momentum with Pradhan Mantri Jan Dhan Yojna (PMJDY) programme. Bank has provided banking services in unbanked rural areas through ICT led Business Correspondents model.

PMJDY and Social Security Schemes:

During the FY (23-24), 17.15 Lakh PMJDY account has been opened. Bank has also actively participated in Social security schemes launched by Govt of India. During the year (2023-24), Bank has covered 77.73 Lakh account under PMSBY (Pradhan Mantri Suraksha Bima Yojana) and 9.38 Lakh account has been covered under PMJJBY (Pradhan Mantri Jivan Jyoti Bima Yojana) in this period. 7.10 Lakh new APY subscribers (Atal Pension Yojana) have been enrolled by the Bank in FY 2023-24.

Star Hawker Atamnirbhar Loan (SHAL)

Star Hawker Atamnirbhar Loan (SHAL)-PMSVANidhi has been launched in June 2020 to provide hassle free Working Capital Demand Loan up to 10,000/- repayable in 12 EMI to Street Vendors under Tranche I. Second Tranche under PMSVANidhi for those street vendors who have repaid/ repaid their 1st PMSVANidhi Loan. Under Tranche II, WCDL up to Rs 20000/- (Minimum Rs 15000/-) provides to street

vendors and it is repayable in 18 months installments. Under Tranche III, WCDL up to Rs 50000/- (Minimum Rs 30000/-) provides to street vendors and it is repayable in 36 months installments.

Till 31/03/2024, we have sanctioned 5.99 lakh cases (97%) and total disbursed 5.93 lakhs (99%) out of 6.18 Lakhs applications received.

PM VISHWAKARMA

PM VISHWAKARMA is launched on 17.09.2023 for the artisans and craftspeople, who work with their hands and tools, are usually self-employed and part of the informal or unorganized sector of the economy are referred to as ‘Vishwakarmas and are engaged in occupations like Blacksmiths, Goldsmiths, Potters, Carpenters, Sculptors, etc. These skills or occupations are passed from generation- to-generation following a guru-shishya model of traditional training, to ensure that are integrated with the domestic and global value chains. It is the goal to offer holistic end-to-end support to the Vishwakarmas (18 traits), i.e. the artisans and craftspeople, to enable them to move up the value chain in their respective trades. The Scheme have implemented by the Ministry of MSME, DFS & Ministry of Finance. MoMSME is the Nodal Ministry for the Scheme. PM Vishwakarma is initially implemented for five years up to 2027-28. Loan up to Rs. 1, 00,000/- will be provided at 5% interest rate (fixed) in 1st Tranche, repayable in 18 months. Loan up to Rs. 2, 00,000/- will be provided at 5% interest rate (fixed) in 2nd Tranche, repayable in 30 months. The beneficiary will be eligible for 2nd tranche when first tranche loan is fully repaid. Further, the second loan shall not be granted before six months of the disbursement of first tranche loan. MoMSME will provide interest subvention @ 8% to the Bank as upfront. No loan is sanctioned under PM VISHWAKARMA scheme as on 31.03.2024 by our Bank.

Star Swarojgar Prashikshan Sansthan (RSETIs):

Bank is sponsoring 43 RSETIs in the States of Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh, Maharashtra and West Bengal to impart training to Rural Youth. During the Financial year 2023-2024 the RSETIs have conducted 1227 training programs and imparted training to 35,448 candidates ensuring settlement of 77.00% (27249) and providing credit linkage to 60.00% (16147) candidates to enable them for gainful employment. All of our 43 RSETIs are graded in “AA” category by MoRD.

Financial Literacy and credit Counseling Centres (FLCC)

FLCC/FLCs are established as per Reserve Bank of India guidelines at Rural and Urban Centers at district locations where Bank is having Lead Bank responsibility. Banks 51 FLCs are functional in all 51 Lead districts. The FLCs in addition to imparting training also undertake remedial counselling on case to case basis for the distressed borrowers, preventive counselling through media, workshops and seminars. Till 31st March 2024, total 18.67 Lakh needy distressed people were given counseling.

Centre For Financial Literacy (CFL): Pilot Project

In terms of communication dated December 10, 2020 from RBI, we have been advised that RBI had announced expanding the reach of CFL to every block in the Country in

phased manner by March 2024. We have been associated as one of the sponsor bank since initial implementation of CFL Pilot Project which stands scaled up w.e.f. 01.12.2021. We were entrusted responsibilities for sponsoring of 106 CFL in first phase and 45 CFLs in Second Phase (w.e.f. December,2022), funded from Depositor Education and Awareness (DEA) / Financial Inclusion Fund (FIF) with some portion to be funded by sponsor bank. Accordingly, we have opened / scaled up 151 CFLs in five States (Jharkhand, Maharashtra, Odisha, Madhya Pradesh & Uttar Pradesh) in collaboration with RBI Identified Five NGOs from 1st December, 2021. Put together, all 151 CFL have conducted 1, 27,265 camps and total 40, 94,692 distressed people have been counseled up to 31.03.2024.

Regional Rural Banks:

Post amalgamation, we are sponsoring 3 RRBs, Aryavart Bank (AB),- in Uttar Pradesh, Madhya Pradesh Gramin Bank (MPGB) in Madhya Pradesh and Vidharbha Konkan Gramin Bank (VKGB) in Maharashtra state, covering 82 districts with a network of 2554 branches as on 31.03.2024. All these sponsored RRBs are managed by the Chairmen deputed from Bank of India and the performances are being monitored by General Manager FI & RRB (Div.) from Head Office. All three RRBs Branches and Administrative offices are on CBS platform with system generated report facility. These RRBs are enabled on RTGS, NEFT and ATM platform. All our RRB have a combined business mix of Rs.1,04,765.80 Cr as on

31.03.2024.

7. INTERNATIONAL

The Bank has 22 Overseas Branches, 1 Representative Office at Jakarta (Indonesia), 4 Subsidiaries, 1 Associate/ Joint Venture, all spread across 15 countries in 5 Continents of all time zones. The contribution of foreign operations in Banks global business mix has been 15.21% as on

31.03.2024.

Overseas Subsidiaries and Associates:

i) PT Bank of India Indonesia Tbk

ii) Bank of India (Tanzania) Ltd

iii) Bank of India (New Zealand) Ltd

iv) Bank of India (Uganda) Ltd

v) Indo-Zambia Bank Ltd. (IZB) - Joint Venture

8. CREDIT MONITORING:

Monitoring of the credit portfolio is essential in order to maintain and improve the asset quality of the bank and minimize credit risks. The main objective of Credit Monitoring is to ensure Compliance of sanction terms and end use of funds. It has to further ensure that the credit assets remain in standard category, endeavor made for up-gradation of identified stressed accounts/watch list accounts and take corrective action to prevent slippage of the accounts from performing to non-performing. The Department has been using various tools and methods for identifying and monitoring stressed accounts with signs of weakness / potential default/delinquencies to ensure good asset quality coupled with containment of probable slippages effectively.

Tools for efficient monitoring & control process:

Early Warning Signal:

A fully tech based EWS solution is implemented in our Bank since August 2020. Our EWS is fully automated solution with in built well defined work flow. Alerts are generated based on both internal (CBS and Rating Data) and External Data (MCA, CIC etc). The alerts generated helps the Bank for identifying incipient weakness and initiate proactive timely remedial measures. The solution helps the Bank in early identification of Fraud in accounts (if any). This solution also enables the branches for close monitoring of accounts. At present EWS alerts are being generated in the accounts with exposure above Rs. 1.00 crores and the same is being proposed to generate for accounts with exposure above Rs. 25.00 lakhs during the Current Financial Year.

Credit RFA/Fraud examination:

As per DFS directive, all NPA accounts of Rs.50 crores & above should be simultaneously be examined for fraud angle. And hence, department is mandatorily examining all the NPA accounts of Rs.50 crores and above for fraud angle. Further, the accounts wherever EWS indicates something suspicious, is immediately examined to Red Flag and thereafter, the process of fraud examination is initiated for decision within the regulatory timeframe.

CRILC Reporting:

Identification of the accounts in SMA category triggers mitigating steps such as follow-up for regularization, restructuring etc. In terms of RBIs revised guidelines, stressed accounts with credit limit of Rs.5 crores and above are reported to RBI on CRILC platform on weekly/ monthly basis.

System Asset Classification (SASCL):

A predictive program in identifying the probable slippages showing overdue of more than two months period based on record of recovery as well as for accounts showing technical irregularities such as non-submission of Stock/ QIS statement over three months insufficient/ no credit in CC accounts etc. This may cause downgrading of accounts if timely corrective action is not taken. These accounts are monitored specifically by various verticals for containment of downgrading of standard assets. A new SASCL format has been devised which is more user friendly and will provide more focused information to the field. Going forward, we propose to reduce the predictive SASCL period to one week at first instance and are planning to move to daily generation of SASCL and marking of NPA during the Current Financial Year.

SMA Monitoring:

Apart from SASCL, Focus will shift to SMA monitoring this year. Branches will be disciplined to start monitoring SMA 0 accounts so that the remedial actions can be taken at initial steps and the concerned account do not move further to SMA 1 or SASCL. We plan to push SMA data to branches directly instead of NBGs (present practice). It is observed that nearly 50% of SMA is contributed by Retail Loans and hence our Department is following up for registration of ECS / eNACH mandate in the legacy accounts.

Zonal Collection Centre (ZCC):

Zonal collection Centre (ZCC) was formed in August 2023 in all the Zones. The primary objective of the ZCC is to focus

on reduction of SMA with other matters of credit monitoring to be carried out by other officials in CrMD of the Zones. The ZCC will be responsible for SMA account of Rs. 25 lakhs and above, with target of roll back of SMA to regular category.

They are required to educate and counsel the borrowers regarding consequences of account moving to SMA category with emphasis on deteriorating credit scores and lesser power to negotiate loan amount and interest rates. ZCC members are also required to insist on the borrower to pay the entire overdue and the critical amount. Prompt repayment will lead to better credit scores and ability to negotiate for better rate of interest. ZCC members should also insist the borrower to shift their primary operative account to our Bank. They should also insist for takeover of business accounts of retail borrowers;

If the borrowers are not able to shift their primary operative account to our Bank, the ZCC members should obtain ECS/ NACH/e-NACH

For accounts with exposure less than Rs. 25.00 lakhs, the main responsibility of follow-up lies with the Branch, however, if necessitated, they are permitted to avail the services of exStaff and BCs and suitable instructions were given to the filed functionaries for the same.

Collection Management System (CMS):

We have already implemented Collection Management System, which will help us in managing SMA/DNPA portfolio by providing Digital Platform to Branch officials. Following are the scope of work for the proposed solution:

1. SMA Risk Gradation

2. SMA/DNPA account list with all relevant information like overdue amount / address / Contact Details etc.

3. Tracking of SMA movement (Roll Forward / Backward)

4. Updating of Collection actions & Customer response, including Promise to Pay (PTP)

5. Visibility of past communication

6. Pushing of reminder SMS/IVR/email to the borrower

7. Suggestive corrective action

8. Integrated with Call Centre to capture customer

response through outbound calling

9. Geo tagging & Suggested next visits based on field officer location

10. MIS for Branch/ZO/FGMO/HO for better monitoring Credit Process Audit (CPA):

Credit Process Audit is to ensure compliance of Pre and Post disbursement terms of sanction terms / covenants, where in the disbursing officer, before parting with the Banks funds, has taken all necessary measures for creation/perfection of security with a view to ensure enforceability of the said securities. Now, CPA is Finacle integrated to monitor in realtime.

PSRS Scrutiny & Certificate:

PSRS is an important tool to evaluate and ensure the quality of sanction/ appraisal which has a bearing on the asset portfolio and in turn a healthy bottom-line of the Bank. We

also timely conduct Post Sanction Review System Scrutiny for all Accounts with exposure of Rs. 5 lakhs and above in respect of sanctions accorded at FGMO level and also ensure that this exercise is conducted at FGMO and Zonal level.

Credit Inspection:

A system of review of Accounts through credit inspection has been put in place for review of Accounts with limit of Rs. 5 Lakh.

Stock Audit:

We ensure timely conduct of Stock & Receivables audit in eligible accounts and take active/preventive steps wherever warranted. The stock audit is presently applicable to standard advance accounts having working capital exposure of Rs. 5 crore and above. It is required to be conducted annually. Assets showing inherent signs of weakness, such as out of order position, overdue Bills under Letters of Credit, invocation of guarantees, review overdue etc., which pose a threat to the banks asset quality, are followed up at various platforms & levels through Tele / Video conferencing.

A new menu for stock audit (STKADT) has been developed in Finacle for stock audit MIS, which will enable us to get timely information about the status of Stock Audit in any applicable account.

Daily marking of NPA:

The Banks has migrated to daily marking of NPA w.e.f. 15.04.2021 to have more transparency in identification of NPA & for compliance of regulatory guidelines.

Monitoring of Restructured Accounts (RFCRS portfolio):

To guard the asset quality of accounts restructured under RFCRS, a dedicated team is formed at Head Office, NBG and Zonal Office level, which ensures close monitoring of RFCRS accounts. Apart from the same, SMS are being sent from HO level to all RFCRS borrowers including the DNPA borrowers.

Reminder calls from Call Centre:

A dedicated team of 50 people employed at our call Centre is working for Monitoring of advances. They are engaged in outbound calling for SASCL & SMA borrowers.

Agencies for Specialised Monitoring (ASM):

As per IBA guide lines ASM (Agencies for Specialised Monitoring) is appointed in accounts having total Banking exposure of above Rs. 250 Crores and accounts with exposure of a specialised nature except in some exempted category accounts like Navaratna Accounts and PSU / Government Guaranteed accounts. We are also engaging services of ASM in stressed accounts wherever required.

IRAC&P Automation:

RBI vide their Circular No: RBI/2020-21/37 Ref No: DoS. CO.PPG./SEC.03/11.01.005/2020-21 dated 14.09.2020 advised all the Banks to put in place and upgrade their Systems by 30.06.2021 to fully automate the processes for identification, Income recognition, Asset classification of advances / investments as NPA / NPA, provisioning and generation of related returns. Accordingly, we have initiated steps to implementation of Automation of IRAC&P Norms in our Bank.

Introduction of in-house MIS System - BOI-Pulse:

With the support of HO IT & MIS, we have introduced inhouse reporting system (BOI-Pulse) to avail the daily position of SMA & DNPA data on daily basis to the field functionaries. In addition to this information pertaining to our Department, seventeen reports were made available in the module viz., Latest SMA, Repetitive SMA, Valuation Expiry, Stock Statement Expiry, Review Expiry, Future Demands in TL/DL etc., to enable the FGMS / Zone / Branches to take benefit of readymade information for their effective monitoring of advances.

Introduction of Collection Management System Portal:

CMS Portal is implemented to enhance collection monitoring in SMA and DNPA accounts. The portal is interactive, where user can update recovery status by providing information like Contacted, Promise to pay (PTP) Date, PTP Status, remarks and uploading field visit report.

Collection in SMA account through Pay-link: To strengthen our Recovery in SMA accounts, Bank will share customized Pay-link in Reminder SMS to the SMA borrower to make instant payment through multiple payment channel. This facility will enable our SMA borrower to make Payment in their loan account by debiting accounts maintain with other bank

Other monitoring tools:

>? Centralized monitoring of Pre-disbursement &

post disbursement covenants implemented for strengthening Compliance level.

>? Policies are in place for Red Flagging of accounts on

observance of EWS & examination of Fraud angle within a specified timeline in terms of regulatory guidelines. Prompt reporting is ensured once account is declared fraud, in RBIs CRILC platform.

>? SMS & IVR are being sent to SMA borrowers and

CC/OD & TL borrowers for repayment intimation. In addition to this, SMS are being sent in vernacular languages as well.

>? Separate list of account where review is overdue for

more than a month and where stock statement is due for more than a month is being provided to branches on a monthly frequency for aversion of technical slippages.

9. NON-PERFORMING ASSETS

(Rs. Crore)

Parameter	Mar23	Mar24
	Actual	Actual
Gross NPA	37,686	29,183
Net NPA	8,054	6,845
Gross NPA%	7.31%	4.98%
Net NPA%	1.66%	1.22%

On Y-o-Y basis Gross NPA improved by 22.56% in absolute terms whereas GNPA% improved by 233 bps (from 7.31% to 4.98%). The targeted GNPA% for FY25 is below 3.5%

Net NPA improved by 15% in absolute terms whereas NNPA% improved by 44 bps (from 1.66% to 1.22%).

• Cash Recovery & upgradation % as of opening GNPA has improved to 16.73% for FY24 against 15.86% for FY23.

• During the FY24, 98% of cash recovery (Rs.1467 Crore) achieved in written off accounts against the target of Rs.1,500 Crore.

Strategies to improve Recovery:

>? To achieve the corporate mantra of “Recovery to be

double the Slippages” various campaigns viz. “Star Intensive Recovery Day” , “Branch Adalat”, “Summer OTS Campaign”, “Krishi Rin Samadhan Abhiyan”, “Foundation Day Recovery Campaign” have been launched during the FY24. “Mission Samadhaan”, Mission 4K” and “Samjhauta Day” campaigns have been launched so far in current FY

>? CGTMSE - FY 2023-24, total 4202 2nd claims settled

resulting total NPA reduction is Rs. 317 Crore.

>? Upon launch of non-discretionary and non

discriminatory policy the recovery at field level has increased with resolution in NPA accounts. To facilitate OTS approvals, special OTS schemes viz. Star Sanjeevani and BOI OTS 2024 have been relaunched for current FY 2024-25.

>? End to end e-OTS module based on STP process, is

under process.

>? Campaigns have been launched with focused recovery

in OTS entered accounts, the milestone recovery, for complete settlement of OTS in time bound manner.

Initiatives:

>? E-Auction - Mega E-auctions are conducted on

monthly basis. Total 530 properties sold involving amount of Rs. 300 Cr during FY 2023-24.

>? RA/EA/BC Engagement - Empanelment and

maximum utilization of Recovery Agents (RA)/ Enforcement Agents (EA)/ Business Correspondent (BC).

>? PDA Appointment - PDA engagement for

unencumbered property.

>? Sale to ARC is explored.

>? e-OTS processing for small values accounts up to

Rs.25 Lakh, as part of EASE initiative.

10. TREASURY

Forex Business: The Treasury manages the foreign exchange business of the bank, providing hedging solutions to the customers through forwards and swaps. Apart from having Centralized Treasury at Mumbai, the Bank has 4 satellite dealing rooms situated at New Delhi, Ahmedabad, Chennai and Kolkata and one centralized back office in Gift city (Ahmedabad) so as to provide better services to the customers. During the financial year 2023-24, Merchant and Interbank turnover was Rs.1.26 lakh Crore and Rs.59.01 lakh Crore respectively. The aggregate turnover of Banks forex business during the year was Rs.60.27 lakh Crore. The Treasury actively participates in trading in Currency Futures and is one of the leading banks in all the exchanges. During the Financial Year 2023-2024, Banks Turnover in Currency Futures was USD 73.41 Bn. The Bank was awarded as the

Top performer in Currency Future (Banks) segment by BSE for FY 2022-23.

Treasury Operations & Investments:

Bank continued to play an active role in all segments of the market - Money market, Forex, Bonds and Derivatives 2023-24. Bank has maintained a higher level of investments by holding SLR investments in excess of the regulatory requirement of 18.00% of NDTL from time to time to ensure that sufficient liquidity is available by the way of borrowing against excess SLR from Repo/TREPS windows. As on 31.03.2024 the gross SLR investments were Rs. 1,75,301.46 Crore (78.86% of total Investments) and Non- SLR investments stood at Rs. 46,967.37 Crore (21.14% of total investments). The Non- SLR investments also includes Recapitalisation bonds of Rs.24,699 Crore. M-Duration of SLR AFS portfolio stood at 2.81% as on 31.03.2024 against 1.21% as on 31.03.2023. M-duration of Total AFS portfolio as on 31.03.2024 stands at 2.65%. In concurrence with the Green initiatives taken by Government of India, RBI had issued notification for sale of Sovereign Green Bonds. As on 31.03.2024 the Treasury branch has investment exposure of Rs 837.61 Cr in Sovereign Green Bonds. All the investments are made in accordance with the Board approved investment policy which is reviewed periodically to respond to market developments/regulatory requirements.

11. INFORMATION TECHNOLOGY:

1. Website

Bank of India has its Corporate and Global Website (12 Foreign Centers) with the latest Technology in the market with respect to look and feel, user experience with improved and enriched customer journey.

Designed to be responsive and developed keeping in mind the current user trends with proper structured menus to provide easy navigation.

Enriched with Google Analytics to capture the behavior of customer and to provide the better services to the customer.

Corporate Website is currently available in 12 Languages (Hindi, English and Marathi, Bengali, Tamil, Telugu, Odiya, Gujarati, Malayalam, Urdu, Kannada and Punjabi)

2. Intranet Portal (Stardesk):

We have revamped the Intranet Portal - Stardesk along with sub-portals, which will not only be enriched with better look and feel but also have enhanced features and state-of-the-art technological capabilities. New Portal being built on Liferay Digital Experience Platform (DXP) enables Code Independent Content Management System, device agnostic design and greater flexibility to cater to any complexity of customizations. New age Portal serves many advantages such as Ease of management, enhanced security and scalability, advance search along with easy integration facilities. It further augments user experience by better document management, audit and logs, watermarking, interactive features, inbuilt document reader and media player.

3. Intelligent Process Automation (IPA):

Intelligent Process Automation (IPA) aims at optimizing Banks operational efficiency by automating manual, repetitive tasks within the Banking system and Banking operations using technologies such as Robotic Process Automation(RPA), Machine Learning(ML), Natural Language Processing(NLP), Smart Workflows, Cognitive Agents, APIs, Intelligent Document Processing (IDP) and other hyper automation tools. By strategically implementing automation solutions, the Bank aims to streamline operations, enhance efficiency, optimize resource allocation, increase accuracy, freeing up human resources to focus more on strategic and value added activities, and remain at the forefront of technology advancements within the banking industry, enabling it to deliver superior services and maintain a competitive edge.

4. Account Aggregator Framework

The Account Aggregator Ecosystem is consent based data sharing mechanism that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network.

It helps the Lenders\Service Providers to leverage on Digital data acquired with the consent (Sahamati) from the Customers eliminating the need of physical documentation .Data cannot be shared without the consent of the individual.

AA framework was made live with M/s Anumati, NADL, FINVU, CAMS and OneMoney.

12. DATA ANALYTICS :

1. E-Platform Project:

Bank has launched Project E-Platform in April 2021 for Straight through Origination and Processing of all Banking Products (Assets & Liability products) including third party products.

Journey so far -

a. E-Platform Phase 1 implementation consists of 20+ products. MSME, Retail, Agriculture KCC, Credit Card and self-Onboarding Saving Account Digital journeys are launched.

b. E-Platform Phase-2 implementation is under underway. 17+ products of MSME, Retail and Agriculture are laun:ched.

c. Fintech Collaboration - Video KYC, Bank Statement Analysis, ITR Analysis, Bureau, name match, e-KYC Verfication, CBS, Fintech services are integrated with e-Platform LOS for end to end digital to end digital journey.

d. Integrated CRM Next Solution is launched with end to end Lead Sourcing & management, Collaboration, Service Management/ Complaint management, Customer 360, Integrated Campaign management and Sales performance. Mobile Application for lead

sourcing is in implementation phase.

e. Lead Management Portal is made live for all the branches/offices of BOI with customer facing sources, BOI web Site, BOI E-Platform, BOI Customer Care, SMS, Missed call, Analytics, Maruti Portal (tie-up arrangement), National portal, Social Media, Business Correspondent, CIBIL, Whatsapp, Chatbot, Internet Banking, Campaign, Universal Application, IVR, Call Center.

f. Complaint Module, Customer Grievance Portal made Live with real time update of complaints (as and when status updated). Service Request can also be lodged using this portal. Bank has made available the common service access, complaint access with real time update in Digital Mode. Also other self-service flows are in pipeline.

2. Building of Advanced Analytics capabilities and Data Governance practices:

Bank is building advanced analytics, governance and reporting/ dashboarding capabilities with state of the art technologies, including Data Governance solution, Business Intelligence Platform, Data Quality solution, Data Lineage solution, Data Catalog solution and Distributed Computing Platform for Advance Analytics work load. Bank is also developing some of the business use cases using GenAI technologies.

Model Name

Home Loan TakeOver

Home Loan Top-Up Model

MSME Pre - approved Letters

Third Party Non Life Insurance

PL to Salaried and Non - salaried Customers

Third Party Mutual Fund

Customer Retention Model

CLTV - For Churn Customers

Pre-approved Personal Loan

Pre - closed TD model

Customer Churn Prediction Model

Home Loan

Vehicle Loan

Next Best Action/Product

MSME CCOD Renewal

3. Executive Dashboard:

BOI Pulse is an in-house developed executive dashboard portal designed to visualize figures related to Advances, Recovery, Finance, SMA (Special Mention Accounts), Deposits, and E-platforms for authorized users in both tabular and graphical formats, enhancing data comprehension and decision-making processes. It supports granular data analysis by offering insights at FGMO, Zone, and Branch levels.

4. Other applications developed by In-house team :

Following applications are developed by bank team of

Data Analytics Department:

1. Data Quality: This portal provides HO/FGMO/ ZONE /BRANCH-wise data quality errors at the customer and account levels. It is categorized into Data Quality and Data Monitoring sections. This portal enables branches to view respective error types, facilitating timely error rectification. Bank received award for improvement in Data Quality from CIBIL.

2. BOI Lakshya: This portal helps zones assign budgets to their branches across different parameters. It enables HO and FGMO to monitor branch budgets in real-time, enhancing efficiency and accuracy in budget management.

3. Centralised Information Management System (CIMS): Reserve bank of India (RBI) has developed its next-gen data warehouse named Centralised Information Management System (CIMS) thereby changing the return submission mode from existing submission to system-to-system. As per instructions from RBI, w.e.f 26-12-2023 all banks returns identified by RBI are now flowing from CIMS system via STP. Under CIMS all returns which were earlier being submitted to RBI are to be submitted through CIMS via straight through process (STP) in XBRL Format/Non-XBRL formats. These returns are submitted end to end via Straight through Process without any manual intervention All Non XBRL returns are developed by bank team and for XBRL returns bank team is providing technical support for timely submission of returns to the regulator.

13. DIGITAL BANKING DEPARTMENT:

The Digital Product base as on 31.03.2024 is as below:

Product	As on 31.03.2024
Total Credit Card	75,579
Merchant Acquiring (POS + BHIM Aadhaar)	43,791
UPI based QR	10,92,195
Mobile Banking*	33,67,449
Internet Banking	88,78,660
UPI	1,87,79,341

* 33,67,449 mobile banking users are on boarded on our new mobile Appl, Omni Neo Bank as on 31.03.2024. Our old mobile App which had around 88,99,013 users was discontinued from 23rd February 2023.

Planned launch of products in FY 2024-25

• Implementation of E-com Transactions for RRBs: We have initiated implementation of E-com transactions for all our three RRBs.

• Bharat Credit Card: We are introducing a New variant “Bharat Credit Card” for Banks mid segment customers. Offers in these card have been included, based on the Merchant wise spend analysis in debit and credit cards. Benefits includes, Rs.250 off on purchase of min 2 tickets on Book my Show, per quarter discount vouchers of Rs.250 from Amazon/ Flipkart, per quarter Big Basket/Blinkit discount voucher of Rs.250, Swiggy Lite 3month plan, lounge access (4 Domestic & 2 International) and Insurance coverage upto 2 Lakhs

• RuPay MSME Credit Card: Bank is in process to launch MSME Credit Card in Rupay Scheme for MSME Customers with premium offers. Offers includes, 10 % off upto INR 1500 on Flight Booking for Make my Trip, Amazon Prime Annual subscription, Swiggy-One Lite 3 month membership, 8 Domestic lounge access and Insurance coverage upto 10 Lakhs

• Credit Card linking in UPI: UPI Payment via Credit Card for making easy, instant and safe Digital Payment transactions. Linking of Credit Card instead of account in any UPI App.

• Updating Balance in NCMC wallet using BOI Mobile Omni Neo Bank

• Aadhar Vault Implementation with BHIM Aadhar Application : “BHIM Aadhaar Pay” is the merchant version of Aadhaar Enabled Payment System (AEPS) which enables merchants (Individual or Sole Proprietor having Aadhaar Number) to accept payment from the Customer having Aadhaar enabled account using his/her Aadhaar number and Biometrics after authentication from Unique Identification Authority of India (UIDAI)

• Sound box QR Code: In order to provide realtime audio credit confirmation for UPI payments made against the BOI BHIM UPI QR Code, Bank is introducing Portable Sound Box System for BOI BHIM UPI QR Merchants. The Portable Sound Box System will notify the merchant for each successful UPI payment made against the BOI BHIM UPI QR code

• Pre-Sanctioned Credit line on UPI: This provide a simplified user interface to UPI credit users. Can leverage UPI functionality such as AutoPay, one time mandate etc. UPI merchants can now accept UPI credit based transactions.

New Initiatives Implemented - FY 2023-24

• BOI Omni Neo App

BOI MOBILE OMNI NEO BANK is BOIs digital banking platform which shall be accessible to customers from new mobile and internet banking. It is Omnichannel. (i.e. All the actions done in App will also get reflected in IB and vice versa. Both IB and App have same features and functionalities). It clubs together all the products and services such as Savings, Deposits, Loans, PPF, SGB, SSY, FRSB, NPS, Mutual Fund, ASBA-IPO, Insurance etc. into a single platform. Key features- Biometric and Face ID Login, Transactions through ChatBot, Simple UI/UX, Fund Transfer using IMPS, UPI, RTGS & NEFT, Schedule payments and Recurring payments, Manage Transactional Rights,

Recharges and Bill Payments, Pull funds from other linked accounts.

UPI Lite X

UPI Lite X (Offline - using Near Frequency communication) is a new variant of UPI Lite for transacting in offline mode with “on device wallet”. Once any phone comes into the network the balance updated with the live wallet.

e-BG

Digital Document Execution of the Bank Guarantee will be done through NeSL platform. A copy of the e-stamped & e-signed Bank Guarantee will be sent to the beneficiary directly by NeSL on real time basis eliminating the physical delivery of the document

e-NACH

We are now live on e-NACH platform which facilitates error free paperless ECS mandate registration in loan accounts for EMI recovery from salary/operative account of customer maintained with other banks. The facility can also be provided to our Corporate/ HNI customers to facilitate them for doing recurring collection from their clients.

Regional Language implementation at ATM

We are implementing Regional Language option in ATM screen along with English & Hindi. In addition to Hindi & English, 8 Regional Languages will be available.

ICCW (Interoperable Cardless Cash Withdrawal) :

Facilitate banks customers who are live on UPI, to withdraw cash from any participating banks ATMs without using their card. We are already live as both issuer and acquirer.

BOI EarthSmart Debit Card

We are introducing BOI EarthSmart, our revolutionary line of recycled plastic debit cards. We have harnessed cutting-edge technology and innovation to create debit cards made from 100% recycled plastic. We are initially launching RuPay Select and Platinum variants of EarthSmart Debit Cards.

Contactless Debit Card facility for RRBs

We are enabling contactless Debit Card facility through Cortex for all our three RRBs Aryavrat Gramin Bank, Vidharbha Gramin Bank & Madhya Pradesh Garmin Bank. Through these contactless Debit Cards RRB customers can utilize Tap and Pay facility for payments upto Rs. 5000 as per RBI guidelines.

Interoperable Card-based Cash Withdrawal at CRM:

Facilitating cash withdrawal for customers of other bank at our CRM. Withdrawal Limits will be in line with regular ATM Cash Withdrawals.

Rupay Select Credit Card

We are introducing a new Credit Card variant under RuPay Scheme- RuPay Select. Benefits include offers in Book My Show, Swiggy One, Amazon Prime Membership, BigBasket, Health Check up, Insurance

cover of upto 10 Lakh, Loyalty Rewards 2X, Concierge Services 24x7 domestic and internationally.

• Rupay Prepaid Card & Gift Card

We have launched Prepaid card & Gift Card in RuPay Scheme. RuPay Prepaid cards are proposed to provide flexibility to the card holders. The card will be contactless in nature, focusing on retail segment with various in-built features and offers.

• Credit Card Onboarding through E-platform:

Credit card onboarding through e-platform is already live. Credit Card can be on-boarded through Branch and Web channel.

14. DIGITAL LENDING

• E-Platform: Bank has garnered new business of Rs.15516 crore in FY2023-24 under Digital Lending Products with adoption level of 44%. During the last financial year, Bank has partnered with fintechs for enhancing the experience of digital loan journeys. Bank is utilizing the services for fetching Land records, satellite image based cropping patterns & cropping history for Madhya Pradesh state on pilot run, fetching milk pouring data & income related data for Amul Society for Gujarat state on pilot run, complete straight through journey for KCC Jan Samarth for state of Karnataka, Uttar Pradesh & Maharashtra, digital journey for Solar Rooftop panel under PM Surya Ghar Muft Bijli Yojana, e-NWR financing under PM Krishi Upaj Nidhi, digital product for GST based lending, preapproved personal loans and pre-approved business loans.

The Digital Lending Department of the Bank intends to go live with 20 new digital products in FY24-25 with the aim to add new business of Rs.30000.00 Crore through digital journeys with adoption level of 60%. Department is also planning to phase out the existing CAPS software by shifting the CAPS products into E-platform. Department is promoting the Digital products on social media emphasising more on generating business through product web journeys. The Marketing team / Digital Lending Champions have been provided with laptops and tablets for quick turn-around for sanctioning loans like Personal loans & KCC loans. This automation shall reduce the turnaround time and provide timely sanction to the customers.

Zones, SKVK, RBC & Branches are provided regular training sessions on digital products. The support team is setup to reduce the turnaround time for technical issues. Feedback from digital lending champions and field functionaries is noted for improving the the digital ecosystem of the Bank. A separate product team has been setup to provide support to customers to complete the journey of the web products.

• TReDS Business: TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of MSMEs through multiple financiers. Bank of India is an active participant on all TReDS platforms and enjoys 7.9% of market share of overall throughput of TReDS business on these platforms during FY 2023-24. Banks TReDS business

outstanding has grown by 94% during FY 2023-24 and stood at the level of Rs. 4142 crores as on 31.03.2024. Further, substantial potential is available to grow our TReDS business as many corporate buyers are still not enrolled or not active on the platforms. Banks TReDS business is expected to grow at good pace in the CFY

• Pool Buy-out: During the financial year 23

24 incremental growth of 16% recorded over the previous financial year with total disbursement of Rs.1445 crore Presently, we have undisbursed sanctioned limit of Rs.2400 crore for pool buy-out facility. Further, additional business of Rs.4600 crore under process which would double the business growth by the end of the FY 2024-25.

• Co-lending: - Presently, department has tie-up with various NBFCs for co-lending under MSME & Retail products. Incremental growth during FY24 is Rs.95 crores (60%) with total disbursement of Rs.186 crores. Total outstanding is Rs.253 crore as on 31.03.2024. We have planned to double the total tie-ups in colending with incremental growth of 200% by the end of FY25.

• Supply Chain Finance: The product has been revamped and new tie-ups are being explored across the industries. We intend to increase the business under supply chain finance by increasing the tie-ups and on boarding digital sourcing partners the current FY.

15. RISK MANAGEMENT:

Risk and Control:

Bank has appropriate mechanism in place to ensure ongoing assessment of relevant risks on a Borrower Level as well as on a Portfolio level to maintain the trade-off between risks and returns. The Board of Directors of the Bank has an overall oversight of all risks in the Bank with specific Committees of the Board constituted to facilitate focused approach to specific risks. The Risk Management Committee of the Board (R.Com), is the subcommittee of the Board which is the apex body for Risk Management, supported by operational level committees of Top Executives for managing various risks, such as Asset Liability Management Committee (ALCO), CRMC (Credit Risk Management Committee), MRMC (Market Risk Management Committee) and ORMC (Operation Risk Management Committee).

Risk Management includes process of risk identification, measurement, monitoring, mitigation and reporting of all potential risks, in all activities and products in the Bank. These processes are well elaborated under respective policies viz. on Enterprise Wide Risk Management, Credit Risk Management, Operational Risk Management, Market Risk Management, Exposure (Bank Exposure & Large Exposure Framework), Asset Liability Management, Foreign Exchange and Dealing Room operations etc.

Banks Risk Management Framework is focused on full integration of risk management into its operations and culture. The integrated risk management framework starts with a risk management cycle, consisting of several steps: setting up the risk appetite, conducting stress testing, scenario analysis, preparing full scope risk assessment of

all segments. Risks are adequately identified, assessed, measured, mitigated and reported. Risk Management is one of the core focus areas of the Bank. The Bank is working to ensure that it adopts global best practices in all the risk areas. This commitment is being achieved by investing both in people & systems and building an enduring risk culture. Bank deploys various tools and techniques for achieving Risk Management objectives viz. Prudential and internal limits Monitoring, Basel Compliant Credit Rating Models, Active liquidity management, ERM Scorecards, PQI etc.

Credit Rating thresholds were based on the performance of the specific industry/sector. Bank uses different internal Credit Risk Assessment Models and scorecards for assessing borrowers credit worthiness. The Internal Rating Model is recently recalibrated in view of the changing economic environment and evolving business models, to better capture the risk drivers and further strengthen the onboarding & underwriting standards.

In the normal course of business Banks experience various risks viz. Credit Risk, Market Risk, Operational Risk, Liquidity Risk and Interest Rate Risk.

Credit Risk is the possibility of loss resulting from a borrowers failure to repay a loan or meet contractual obligations. Bank has adopted Standardized Approach (SA) for Credit Risk Computation.

Market risk is possibility of loss to the bank due to movement in market factors viz. Interest Rate, Foreign Exchange Rate, Equity Prices etc. Bank has adopted Standardized Duration Method (SDM) for Market Risk computation.

Operational Risk is defined as the risk of loss resulting from inadequate or failed internal process, people and systems or external events. Operational Risk includes legal risk, but excludes strategic and reputation risk. Bank calculates Operational Risk Weighted Assets through Basic Indicator Approach (BIA). Bank is in the readiness to adopt New standardized approach for computing Operational Risk Weighted Assets, as mentioned in the draft RBI Guidelines. The Bank monitors and manages operational risks on an ongoing basis. Comprehensive set of processes, systems of internal controls, and policies are also in place, to reduce the probability and potential impact of losses from Operational Risks.

Asset & Liability Management: Bank has adopted robust ALM Practices to mitigate financial risks resulting from mismatch of assets and liabilities. Effective Assets and Liabilities Management (ALM) is essential for a banks sustainable and qualitative growth to achieve greater efficiency and profitability while reducing risk. Your Banks ALM endeavors to strengthen the Balance Sheet by reviewing the market dynamics, picking up signals emanating therefrom, and maintaining regulatory requirements. As a part of commitment for sound Risk Management practices, your Bank regularly reviews its Internal Policies on ‘Pricing for Loans & Advances, ‘Global Asset and Liability Management, ‘Stress Test Policy to adapt to oscillations in market conditions. Your Bank further undertakes Stress Tests and Reverse Stress Tests to address any risks that may arise as a worst-case scenario. Liquidity for the Banks domestic banking operations is directly managed at the Head Office. The overseas branches and offshore unit of the Bank independently manage their liquidity

requirements with support from the Head Office. Similarly, the Banks subsidiaries independently manage their liquidity requirements with adequate oversight by Risk Management committee of the Bank. Further, the Bank maintains suitable systems and processes to monitor liquidity requirements in other currencies as appropriate.

Your Banks liquidity and interest rate risk management framework is guided through a well-defined Board approved Global Asset Liability Management Policy. As part of this process, your Bank has established various Board-approved limits for liquidity and interest rate risks in the banking book. The Asset Liability Committee (ALCO) is a decision-making unit responsible for implementing the liquidity and interest rate risk management strategy of the Bank in line with its risk management objectives and ensures adherence to the risk tolerance/limits set by the Board. ALCO reviews the policys implementation and monitoring of limits. While the maturity gap, Basel III ratios, and stock ratio limits help manage liquidity risk, Interest rate risk in the banking book is monitored and managed by assessing & acting on the potential impact of interest rates changes on Net Interest Income and economic value of equity. This is reinforced by a comprehensive Board approved stress testing programme covering both liquidity and interest rate risk.

Robust behavioral analysis is certainly the core of effective ALM Management landscape. Behavioral Studies are carried out by your Bank at regular intervals to assess customer behavior to impart proper treatment of non-contractual assets and liabilities and embedded options available to customers, which are used while managing maturity gaps and reprising risk. Behavioral studies are conducted to ensure the proper placement of outflows/inflows in liquidity and interest rate sensitivity statements, which may result from balance sheet exposures like prepayment of Term Loans/Term Deposits, run-off in CASA etc. and Off-Balance Sheet (OBS) exposures like devolvement and invocation in BGs/LCs etc. The assumptions relating to non-contractual assets and liabilities are reviewed periodically, back-tested and revised as per the outcomes of the latest studies. Further, your Bank has the necessary framework and Board Approved policy in place to manage and mitigate intraday liquidity risk.

The stock of High-Quality Liquid Assets (HQLA) and net cash outflows are monitored daily under to ensure the maintenance of LCR as prescribed by the Regulator and Banks internal Policy benchmarks. Your Bank has implemented the NSFR guidelines of RBI, measuring the long-term resilience of your Bank in terms of liquidity. Your Bank identifies the inherent risks associated with changing interest rates on its Balance Sheet (On/Off) exposures from both short-term and longterm perspectives. For this purpose, the impact of change in the interest rates on Earnings at Risk (EaR) and Economic Value of Equity (EVE) is assessed with pre-defined tolerance limits, enabling the management to initiate appropriate preventive steps in a likely scenario of erosion in NII/ Net Worth. Your Bank constantly strives to ensure adequate monetary policy transmission through its benchmark lending rates. Your Banks Asset Liability Management Committee (ALCO) monitors and manages Liquidity and Interest Rate risks by modulating the asset-liability mix in the Balance Sheet and recalibrating the pricing of liabilities and assets from time to time. The ALCO, inter alia, regularly reviews

the interest rate scenarios, the growth pattern of liability products, credit growth, competitive advantages, evolving liquidity conditions, adherence to regulatory prescriptions, etc.

Your Bank is measuring and monitoring Interest Rate Risk in the Banking Book (IRRBB) since June2023. Interest Rate Risk in Banking Book (IRRBB) refers to the current or prospective risk to banks capital and earnings arising from adverse movements in interest rates that affect its banking book positions wherein your Bank compute the impact on Economic Value of Equity and earning (NII) based on the 6 prescribed regulatory standardized interest rate shocks.

The Bank undertakes Internal Capital Adequacy Assessment Process (ICAAP) on a yearly basis which contains assessment / measurement of various risks (Pillar II Risk) along with the pillar I risk, the Risk Appetite of the Bank and appropriate level of internal capital required by the bank in relation to the Banks risk profile. Stress Testing Process is in place for enhancing risk assessment by providing the Bank a better understanding of the likely impact even in extreme unfavorable circumstances. The ICAAP is the process by which the bank ensures that it operates with an appropriate level of capital. It encompasses a large part of what could be considered a complete Enterprise Risk Management (ERM) framework. The ICAAP brings together risk and capital management activities in a form that can be used to support business decisions. Bank also identify the Pillar II risks relevant for the Bank, assess and measure them and suggest the mitigation plan while reporting to risk committee.

In last one and half year the regulation around Climate Risk, Sustainable Finance and ESG has been evolving rapidly. Bank has already identified climate risk as an pillar II risk in ICAAP. Further, as the regulation and governance around climate risk has evolved, Banks Board has adopted ESG Policy (Environment, Social and Governance) for the Bank. ESG policy include the governance structure for taking the cause ahead and also set deliverables for the various departments in the Bank. The ESG policy outlines the Banks intent to move in the direction of net zero as per the countrys commitment and also enable to comply with all the regulatory requirement on ESG & related disclosures.

In addition, Bank has field level Risk Managers at all geographical centers (Zones, Field General Manager Office, and Overseas Branches) to inculcate the risk culture at the field functionary level also.

Banks Information Risk Management System has clear objective to protect the bank from Information Security risks in the face of acceleration in cyber-attacks and cyber security threat, specifically to financial institutions. Information security department strengthens controls to protect the brand, reputation and assets of the Bank. Bank is vigilant of the security and privacy of the data related to its patrons and account holders and takes utmost care to protect it from cyber-attacks. Bank has put in place Captive Security Operation Centre (SOC). Bank has implemented information security tools for Real-Time monitoring of Information Security breach attempts / incidents / events on 24x7 basis in order to timely prevent, detect and respond. Advanced security tools like SIEM (Security Information and Event Management), PIM (Privilege Identity Management), DAM (Database Activity Monitoring), WAF (Web Application Firewall), NBAD

(Network Behaviour Anomaly Detection), Anti-APT (Advance Persistence Threat) for Web & Email Channels and Anti- DDoS, Data DLP (Data Leakage Prevention) are some of the many security solutions are deployed. Various new security solutions focusing on threat hunting, prevention, detection and response are also put in place. The Bank is ISO 27001:2013 (ISMS) and ISO 22301:2012 (BCMS) certified. Effective brand protection services are put in place to protect Banks customers from Phishing attacks by way of fake sites. Risk and vulnerability assessment exercises are regularly carried out for all systems with timely remedial activities. Security awareness campaigns, especially with respect to social engineering, are conducted across the Bank encompassing staff as well as customers through various channels of learning and communication.

16. THIRD PARTY PRODUCTS DIVISION

1. Bank of India is a Corporate Agent for Two Life Insurance companies, Three General Insurance Companies and Three Standalone Health Insurance companies.

2. Bank has adopted Execution model for distribution of Mutual Fund products. In the Mutual Funds business, Bank follows an open architecture thus can enter into multiple tie-up arrangements. Accordingly Bank has entered into a tie-up agreement with various Asset Management Companies to distribute Mutual Fund products.

3. While offering the products and services of Bancassurance & Mutual Fund AMCs, the Bank adheres to the relevant guidelines of RBI / IRDAI / AMFI /SEBI or any other regulator which is binding upon it.

4. The Existing Tie up of the Bank with various Insurance companies under each category as well as with Mutual Fund AMC is as follows:

Existing Tie-ups:-

Sr.No Products	Tie-up Partner
i Life Insurance	1) Star Union Dai-ichi Life Insurance Company Ltd.
	2) LIC of India
ii General Insurance	1) Reliance General Insurance Co. Ltd.
	2) Bajaj Allianz General Insurance Co.Ltd.
	3) Future General India Insurance Co.Ltd.
iii Health Insurance	1) Star Health & Allied Insurance Co. Ltd.
	2) Care Health Insurance Co. Ltd.
	3) Niva Bupa Insurance Co. Ltd.
iv Mutual Funds	Name of AMCs
	1) Bank of India Investment Managers Pvt Ltd.
	2) UTI Asset Management Co. Pvt. Ltd.
	3) HDFC Asset Management Co. Ltd.
	4) Kotak Mahindra Asset Management Co. Ltd.
	5) Franklin Templeton Asset Mgmt. Pvt. Ltd.
	6) Bandhan Mutual Fund (Formerly IDFC Asset Management Co. Pvt. Ltd.)

7) DSP Mutual Fund (Formerly DSP BlackRock Investment Managers Ltd.)

8) Aditya Birla Sun Life Mutual Fund (Formerly Birla Sun Life Asset Management Co. Ltd.)

9) Nippon India Mutual Fund (Formerly Reliance Mutual Fund).

10) SBI Funds Management Private Limited

5. Bank has earned a total Commission of Rs.200.12

crore for FY 2023-24 from various segments as per detail is stated below:

(Amt. in crores)

TPP Segment	Commission Income
Life Insurance	154.76
General Insurance	23.32
Health Insurance	17.42
Mutual Fund	4.62
TOTAL	200.12

17. MARKETING & PUBLICITY:

Bank of India aims to increase visibility amongst general public, spread awareness of its products and state of the art services amongst general public, customers & all its stake holders. Publicity & PR activities are implemented across all geographies with an objective to cater all sections of the society by bringing out several advertisements campaigns and communications through various media available viz. OOH including signage, digital hoardings, display at metro train, local trains, bus shelters, railway stations, airports, radio, television, print, digital & social media etc.

Bank has implemented different marketing approaches which are imperative to not only stay competitive but also to foster customer engagement and loyalty. Further, by adopting social media & digital marketing strategies, Bank is able to leverage the potential of online channels to reach out larger population, engage them & to translate the same into business. Marketing, publicity, advertising & public relations help the bank towards sustained brand recall amongst population and the same is considered as an investment in the brand building.

18. BUSINESS PROCESS RE-ENGINEERING (BPR)

BPR Department works on improving the existing systems and processes in the Bank and on other aspects of change management that include the organizational structure, products, & policies. The major customer centric initiatives taken during 2023-24 are as under:-

Project works/initiatives during FY (2023-24):

1. Creation of Digital Lending Department: Digital Lending Department has been created to establish a digital lending framework and provide guidance with respect to the principles and processes to make decisions in the digital lending journey. It will make better customer experience toward our digital loan products and ensure robust growth in terms of sale of digital loan products.

2. HR Transformation: A Request for Proposal (RFP) floated to select a Consultant to evaluate the current

set up of the Bank and the Strategic Road Map drawn by the bank aimed at Transformation of HR Activities by which the entire gambit of Human Resources Management activities of the Bank gets digitalized. It will improve Banks efficiency in performance management and target setting by proper utilization of manpower to achieve the Banks corporate goal and improve customer services.

3. Rationalization of Service Charges: Service

charges have been rationalized in order to make it customer friendly, promote digitalization and remain competitive with industry trends.

4. Re-categorization of Indian Branches: We have revised categorization norms and accordingly recategorization of branches has been done for ensuring right staffing and ease of customer service delivery.

5. Fair Lending Practice: Under the initiative of fair

lending practices, we have framed new penal charges and discontinued charging penal interest in all loan products as per RBI guidelines w. e. f. 01.04.2024. The new penal charges are reasonable, competitive and only for the purpose of inculcating a sense of credit discipline among customers.

6. Revamp / modification of Corporate Credit Structure- Identification of Emerging Corporate Credit Branches (ECCB) - We have identified 18 branches at potential centers and empowered them to cater to the needs of emerging corporates in their respective areas. It will improve our commitment for best customer services to corporate clients.

7. Star Paramarsh - Staff Suggestion Scheme to have firsthand operational/practical suggestions from the field: We have expanded the scheme to cover all ideas & suggestions of staff given at all fora, including at conferences, conclaves, and training centers, for operational efficiency & service effectiveness. Out of 509 suggestions received during the year, 52 have been selected for implementation for better service effectiveness.

19. LEGAL & RIGHT TO INFORMATION ACT:

Legal Department of the Bank acts as support department and provides platform for various matters of Opinion, Documentation, Litigation etc. emanating from various other functional departments at Head Office.

Besides attending to referral matters of various NBGs/ Zones, Domestic Branches/Foreign Branches and Banks subsidiaries, the Department also caters to the specific needs of specialized Departments like Information Technology Department, International Department, Treasury Department, Digital Banking Department, Digital Lending Department, Card Products Department, Transaction Banking Department etc. by Drafting/Vetting of documents of various contracts/Service Level Agreements (SLAs), Software/Hardware procurement, various types of tie-up arrangements /new products etc.

The Right to Information Act has taken a pivotal role in the Society and lot many applications are received by the Bank at various levels. Bank has identified Central Public Information Officer and Appellate Authority at various NBGs/

Zones/LCBs. Deputy General Manager (Law), Head Office is designated as the CPIO of the Bank and the General Manager, Legal Department is the Appellate Authority. The procedure for disposing of application or appeals involves collecting the desired information from various Departments and supplying the same to the applicant within the fixed time duration of 30 days and also to guide the other NBGs/Zones on specific points.

Moreover, with a view to create awareness among the staff, Legal Department issues circulars and guidance to NBGs/ Zones on the amendments on Statutes and New Legislations.

In addition to the above, the Legal Department also attends to:

• Approval of Plaints in respect of suits filed by Bank and Monitoring of said cases.

• Advising on writs, cases, appeals, claims etc. filed against the Bank, vetting of the applications/affidavits etc. wherever required.

• Attending to the various queries of Ministry, Reserve Bank of India and IBA on different matters including new Legislation/amendments under consideration on various Acts.

• Opinion on Share transmission matters of Share Dept.

• Cases against Bank/Claim against Bank not acknowledged as debt/provision requirement/follow up with Zones etc.

• Consolidation of Lok Adalat data received from NBGs/ Zones

• Collection and compilation of data/statistics pertaining to suit filed/decreed cases/Lok Adalat and submission to various authorities like Reserve Bank of India, MOF etc. RBS data.

20. COMPLIANCE DEPARTMENT

Bank has an independent Compliance Department which is headed by an officer of the rank of Chief General Manager referred as Group Chief Compliance Officer. The core function of the department is to ensure compliance of statutory, regulatory and Banks internal guidelines for both domestic as well as overseas operations. The department is the single point of contact for RBI and ensures smooth conduct of Risk Based Supervision (RBS) as per prevalent SPARC framework.

Bank has a Board approved Compliance Function Policy which is framed as per Reserve Bank of India guidelines and is reviewed & updated annually. The policy gives credence to the following components: i) Governance ii) Compliance Risk Assessment iii) Policies, Procedure and related controls iv) Compliance Monitoring and Testing v) Reporting and Communication vi) Training and use of technology to improve compliance and vii) Regulatory interaction and Coordination.

The department has adopted technology in compliance to improve transparency, efficacy, oversight and effectiveness and to deal with uncertainty and manage risks, both known and unknown which can help improve the strategy, performance and offer greater insight for decision making. The Department is also conducting periodic testing exercise

to confirm adherence and sustenance of RBI guidelines/ instructions. The number of Compliance testing is in increasing trend year on year and reporting of test results are submitted to Top Management on periodic basis.

The Compliance Department is also overseeing compliance function of overseas establishments which follow their respective territory based compliance policies as well as KYC- AML-CFT Policies. Each overseas centre/ branch/subsidiary has an independent compliance officer to look after the respective compliance function. Overseas branches comply with the applicable regulatory requirements (home country /host country regulatory guidelines whichever is stringent) and submit confirmations / compliance sustainability reports. The compliance officer of each overseas branch undertakes monthly compliance testing and submits report to Head Office. To inculcate culture at down the level, field level compliance officers are posted in each zones and Field General Manager Offices (FGMOs) across India under direct reporting line of Group Chief Compliance Officer.

21. OFFICIAL LANGUAGE:

The Bank has a well established Official Language Department which ensures implementation of the provisions related to the Official Language Policy of the Government of India and progressive use of Hindi in the Bank. In accordance with the annual programme of the Government of India, for the planned implementation of the Official Language Policy of the Government, the Annual Karya Yojana 202324 was prepared by our bank, which was released by Mrs. Anshuli Arya, Secretary, Official Language Department, Government of India. An e-learning module was prepared on the quarterly progress report of the official language which the staff members are passing. For the first time, all the top management group executives posted at the Head Office were trained in the Official Language Workshop. World Hindi Day 2024 and Hindi Day 2023 were celebrated with full enthusiasm. Famous actor Shri Akhilendra Mishra also participated in the seminar organized on the occasion World Hindi Day. On the occasion of Hindi Diwas, many competitions were organized across the bank in which foreign branches also participated. On this occasion, a quiz related to the official language Hindi was organized on the social media handles of the bank in which customers also participated enthusiastically. An exhibition was organized by the Bank in the 3rd All India Official Language Conference (Pune), organized by the Government of India on 14th and 15th September 2023 in which the Star Rajbhasha Kalash was kept on the concept of “Meri Mati, Mera Desh” of the Government of India. In this, Minister of State for Home Affairs Shri Ajay Kumar Mishra, Governor of Kerala Shri Arif Mohammed Khan and other dignitaries put soil brought from different states and trees were planted in the head office with this soil. This event has been greatly appreciated.

In the financial year 2023-24, emphasis was laid on capacity building and better performance of Official Language Officers and keeping this in mind, All India Annual Review Meeting, training program on Kanthasth 2.0 and Advanced level Official Language Workshop were organised. At the All India level, information about the great sons of the country is sent every week in hindi through the “Eminent Personalities Series”. Hindi email competition was organized in the head office throughout the year. “Rajbhasha Shield Competition”

was organized for the departments of the head office and Zones. Many reference literature have also been prepared by the Zones to encourage the use of the official language. Seminars have been organized by the zones on various important topics.

Our Zones and TOLIC have received 9 regional level awards from the Government of India. Also, 31 zones and branches have received awards from TOLIC during the year. Many staff members have also received awards at individual level in All India Interbank competitions and TOLIC competitions. This year the Bank has organized a total of 153 Official Language workshops in which 3812 staff members have been trained. Our Bank is successfully carrying out the responsibility of convenorship of 15 TOLIC as prescribed by the Government. Our 11 offices/branches were inspected by the Parliamentary Committee on Official Language during the year which also included inspection of our Head Office. All inspections were completed smoothly. To ensure the use of official language Hindi, the department promptly translates bank circulars etc. To encourage more work in the official language, the Bank is publishing Hindi magazine “BOI Varta”.

22. HUMAN RESOURCES, LEARNING AND DEVELOPMENT:

A. HUMAN RESOURCES:

Decision making in HR is aimed to be more data- driven to reduce the likelihood of failure and bias. Bank aims to achieve consistency through building capability and continuous learning and development.

• As on 31.03.2024, there were 50,944 employees on the rolls of the Bank. Out of this, there are 27,136 Officers, 18805 Clerks and 5003 Subordinate Staff. During FY 2023-24, Bank recruited 421 Staff Officers in General Banking and Specialist cadre and 275 (19 under compassionate appointment) in Clerical cadre. During FY24-25, the Bank plans to recruit 885 Staff Officers and 335 clerical staff.

• Performance Management System (PMS) has been introduced for achieving an objective assessment of employee performance to enable course correction feedback and action thereof. Budgetary Appraisal and Non-Budgetary Appraisal is being undertaken wherein Target / budget figures are being captured from the FINACLE and compared vis-a-vis actual performance.

• In Succession Planning, endeavour is being made to bridge systematically the gaps of skill shortage in critical areas of Corporate Credit, Credit Monitoring, Recovery, Treasury etc and also in the emerging areas such as Infrastructure Financing and Financial Inclusion, through mapping of competencies vis-a-vis critical roles identified.

• In Talent Management sphere, a focussed Talent Review & Development Process is being undertaken to ensure that the current incumbents and potential employees in these roles will be suitably trained and groomed to assume these roles in time.

• Towards paperless HR, various digitisation initiatives such as Online acceptance of terminal dues applications, complaint handling, Investment dashboard for the management, POSH complaints on

BOI - She Box etc. have been implemented.

• Board Approved Policy on POSH (Bank of India Prevention of Sexual Harassment at Work Place Policy) has been implemented to proactively work towards betterment of all employees. Regular Workshops/ Awareness sessions are being conducted for all employees & Senior Executives of the Bank in a phased manner.

• Officers who are interested and are having flair of working in specialized areas like Credit, Risk Management, Treasury etc., are being identified through ‘Star Hunt scheme. After selection, such officers are trained in the vertical they are selected for and are posted in identified fields.

• To promote self-learning many courses from identified institutes as well as under MOOCS were included in the Banks Capacity Building. Customized training programmes have also been formulated in collaboration with external training institutes like CRISIL, IIBF, CAB Manipal Institute etc. for imparting trainings in areas like Credit, Compliance etc.

• Bank aims to ensure seamless implementation of various HR initiatives like Employee Engagement Survey, Job Family, Succession Planning & Talent Management Process and any other Government directive envisaged in PSB Reforms Agenda for Enhanced Access & Service Excellence (EASE).

• Bank has implemented ‘Bank of India Code of Ethics & Conflict of Interest Policy towards ensuring an organization based on ethics and moral values and a work environment free of any kind of bias/ discrimination and harassment.

• Our Bank has concluded employee engagement survey on the theme "Employee Work Life Balance to ensure constant and regular growth of all employees and in turn, of our organization.

• We are committed to strict compliance and implementation of Equal Opportunity Policy in our bank towards eliminating all forms of discrimination and ensure that the persons with disabilities enjoy equality, dignity and are empowered and better equipped to perform at par with others.

• HR Transformation project named BOI STAR LIGHT (Leading Innovation and Growth with Human Talent) was Kicked-off in the Bank on 01.03.2024 for which bank has empaneled a Consultant to provide inputs for Transformation of HR Activities in the Bank. Bank intends to be amongst the top PSBs in the areas of tech adoption, digitization, customer experience, employee engagement, profitability, compliance and governance.

• "Moms Relaunch Program an initiative for returning mothers has been introduced by the Bank which is aimed at providing counselling to staff members who have returned post maternity leave.

• Bank has introduced the "Bank of India Diversity, Equity and Inclusion (DEI) Policy with an aim to promote a culture that is inclusive and respects individual dignity leading to improvement in organisational performance

and fostering productivity, innovation and loyalty at the workplace.

• Various HR initiatives have been undertaken by the Bank including introduction of Child Care Allowance of Rs.3000/- per month per child (max. 2 children) for all female employees and eligible Male employees (single parent) for their dependent children upto the age of 5 years; Telemedicine Facility for all serving employees; Women centric initiatives taken under the Transfer & Rotation Policy for Officers.

• As a part of the ESG initiatives, various events were organized during the year ended 31.03.2024:-

>? Talk on the topic Stress can be Fabulous,

Stress can be Fatal”.

>? Health Check-up Camp on gynaecology &

fertility, skin & hair analysis

>? Breast Cancer Awareness Camp.

>? Eye check-up camp was organized along with a

talk on advancement in Eye Care.

• Felicitation of Sportsperson Employees - Ms. Simranjeet Kaur, a renowned Archer and Mr. Niranjan Mukundan, a renowned para-swimmer for their stellar performance at various International and National events.

• Various new modules have been introduced in HRMS such as -

- MY VOICE : To submit feedback to help in the growth of the bank.

- ‘Star of the Month : To encourage zeal, initiative taking ability and enhance proactiveness of employees.

- ‘HR Ranking : To inculcate a culture of development

- ‘How am I feeling today? : To provide a platform to staff to express their feelings.

Compliance with Reservation Policy for representation of SC/ST/OBC/EWS/PwD/Ex-SM:

The Bank is strictly complying with the reservation policy of Government of India. Separate cell for SC/ST and OBC has been set up at Head Office as well as in all Zonal Offices which takes exclusive care in implementing the reservation policy and redressal of grievances related to SC/ST/OBC Employees. EWS reservation in Direct Recruitment was implemented in the Bank since 01^st February 2019.

Cadre	SC	% to total staff	ST	% to total staff	OBC	% to total staff	EWS	% to total staff	Total
OFFICER	4894	18.04	2504	9.23	8129	29.96	292	1.08	27136
CLERK	2858	15.20	2226	11.84	5305	28.21	527	2.80	18805
SUBSTAFF	1711	34.20	603	12.05	1373	27.44		0.00	5003
TOTAL	9463	18.58	5333	10.47	14807	29.07	819	1.61	50944

23. LEARNING AND DEVELOPMENT:

Learning and Development Department is overall countrywide in-charge of all the training colleges, all training related activities including capacity building, executive training and coaching. In house talent development and imparting of class room trainings are being taken care of by the Learning and

Development Department. Bank has adopted Hybrid mode of training to train its employees. Banks 7 training colleges have imparted training to 32,500+ employees during the financial year using Hybrid mode. Bank has been using E-Learning modules for enhancing competencies of employees and to equip the staff with right skills and knowledge for meeting ever changing business dynamics across different segments, 19,000+ officers have done various e learning modules. To enhance the capabilities of employees, bank has made several collaborations with Training Institutes viz. CAFRAL, CAB Pune, NIBM Pune, IIM Udaipur, ASCI Hyderabad, IDBI Training College Hyderabad, IIBF, IIBM, BIRD Lucknow & Mangalore, NIPFP New Delhi, IRMA Anand, State Bank Academy Gurugram, NIBSCOM Noida, National Forensic Science New Delhi and Gandhinagar, Manipal Global, IMI New Delhi, Datawise etc. As per CVC guidelines, uniform Induction Training Programme of Newly Recruited Officers and also programme on preventive vigilance for newly joined officers and mid-career officers have been adopted by the Bank. Induction training for all the 375 newly recruited officers in 2023 has been undertaken and completed by training colleges.

Another channel of recruitment of Probationary Officers (Credit & IT) in Scale-I has been approved by board. The candidates joining the Bank through this channel, have been given provisional appointment initially and final appointment shall be given after passing Post Graduate Diploma in Banking and Finance(PGDBF). At present 470 (GBO Credit - 327 & IT Specialist - 143) candidates are undergoing PGDBF at an identified institute.

Development Centre was conducted for Scale IV and above (1907 officers) in 2021-22 and IDPs were created. Based on the competencies personalized executive one to one coaching for executives scale V and above has commenced in September 2023 and will continue till it is completed. The Development Centre exercise for the remaining officers in scale IV and above and newly promoted CMs will be completed in the year 2024-25. EASE directives propel some of the mandatory changes in approach to training especially of top executive grade officers. Under EASE Framework, Government of India is desirous of more involvement of staff by way of Employee Engagement Programs, training in new age technology and grooming of Senior Management by way of personal behavioral coaches. This aspect has begun in and executive one-to-one coaching has begun in our bank since September 2023.

Weekly webinars are conducted on various banking topics by training colleges in the evening hours of every Friday. All training colleges are collectively bringing out monthly magazine, Star Darpan. Other publications like Sandeepani and Vijeta by training colleges are instrumental in the skill upgradation of employees.

Customized trainings are being conducted at knowledge partners campuses. These trainings include important subjects like Intensive Credit, Leadership Training programme for Women Branch Heads, RBC Heads, SMECC Heads, Star Krishi Vikas Kendra Heads (SKVK), Internal Auditors and Lead District Managers Heads (LDMs). 2600+ participants attended various programmes.

Bank has embarked upon HR Transformation exercise called ‘BOI-Star Light which commenced from March, 2024

and learning related activity/areas are being discussed with the consultant. As regards skill assessment, a new approach is being worked out.

24. CUSTOMER EXCELLENCE BRANCH BANKING:

At apex level, Customer Service Committee of the Board is in place for governance which is empowered to evaluate the Customer Service and provides strategic direction, oversight and make decisions for implementation in our Bank.

The Bank has a Standing Committee on Customer Service, which acts as the bridge between the various departments of the Bank and the Customer Service Committee of the Board.

The Bank has adopted Star Sampark (CRM Next) module in line with Complaint Management System as per the regulatory requirement for integration of multiple channels of complaints registration on a common digital platform, for effective monitoring and timely review.

Bank has adopted various Policies including ‘Customer Acceptance, Customer Care, Customer Severance and Customer Rights Policy and ‘Customer Grievance Redressal Policy, which are reviewed from time to time as per the directions/ guidelines of the regulatory authorities. These policies are placed on public domain. We have appointed Internal Ombudsman as per the RBI guidelines to review the wholly/ partly rejected complaints and give decision.

The Bank has a full-fledged Call Centre located at two centre viz. Airoli (Navi Mumbai) and Begumpet (Hyderabad) providing 24X7X365 assistance to the existing and prospective customers.

Bank is committed to bring in customer excellence while extending Customer Service of a high order in a transparent manner. Bank obtains feedback from branch visiting customers based on the services rendered by the branches. This enables the Bank to take appropriate decision on different banking products offered by the Bank.

25. BRANCH NETWORK & EXPANSION

Bank has a geographically well spread branch network in India and abroad. Bank had 5155 branches in India as on 31.03.2024. In the foreign countries, 22 branches (including IFSC Banking Unit at GIFT City), 4 Subsidiaries, 1 Joint Venture and 1 representative offices keep Banks presence felt in all times Zones and important financial centers of the globe. During the year 2023-24, Bank has opened 31 new branches out of proposed 32 branches. Composition of Banks Branch Network is as under:

Category	31.03.2023		31.03.2024
	No of Branches	% to total	No of Branches	% to total
Metropolitan	991	19.32	992	19.24
Urban	829	16.16	835	16.19
Semi-Urban	1456	28.39	1465	28.41
Rural	1853	36.13	1863	36.13
Total Domestic Branches	5129	100	5155	100

26. DOMESTIC SUBSIDIARY MANAGEMENT DIVISION:

BOI Shareholding Limited (BOISL):

Bank has investment of Rs. 6.65 Crore in BOISL, a wholly owned subsidiary of the Bank. BOISL acts as Depository Participant (DP) of both the Depositories, National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL).

Bank of India Investment Managers Pvt. Ltd. (BOIIM) & Bank of India Trustee Services Pvt. Ltd. (BOITS) (Erstwhile BOI AXA Investment Managers Pvt. Ltd. and BOI AXA Trustee Services Pvt. Ltd.):

These subsidiaries are in the business of Mutual Fund and Investment Advisory Services under SEBI Investment Advisor Regulations. Bank of India is holding 100% stake in BOIIM and BOITS with investment of Rs. 98.10 crore.

BOI Merchant Bankers Limited (BOIMBL):

BOI Merchant Bankers Limited was promoted on 31.10.2014 to undertake merchant banking business including arranging of Syndicated Loans, Bonds and Debentures. It is a wholly owned subsidiary of the Bank with paid up capital of Rs. 10 crore.

STCI Finance Limited:

Established in 1994, STCI Finance Ltd., acts as a non-deposit taking NBFC. Bank of India with 29.96% holding (investment of Rs. 130.10 Crore) is the largest stakeholder in STCI with equity share capital of Rs 380 Crore. STCI Primary Dealer Ltd. (STCIPD) is a wholly owned subsidiary of STCI Finance Limited. STCIPD commenced its operations in June 2007 and is one of the leading primary dealers in the country.

Star Union Dai-Ichi Life Insurance Company Ltd. (SUDLIFE):

Bank of India, Union Bank of India and Dai-Ichi Life International Holdings, Japan have formed a Joint Venture “Star Union Dai-Ichi Life Insurance Company” to provide life insurance services to its clients. The company commenced insurance business in February 2009. BOI holds 28.96% (investment of Rs. 132.92 crore), UBI holds 25.10%, and Dai-Ichi Life International Holdings holds 45.94% stake of the Company.

ASREC (India) Ltd . was floated by the Specified Undertaking of the Unit Trust of India (SUUTI) to undertake securitization and asset reconstruction activities. Bank holds 26.02% stake (investment of Rs. 27.60 crore), in the equity capital of the company of Rs. 98 crore.

INVESTMENT / ALLIANCES:

National Asset Reconstruction Company Ltd (NARCL)

- IBA has set up of Bad Bank to resolve the NPA issue in Banking Sector. Bank has invested Rs 247.50 Crore in the company with 9.00% holding.

India Debt Resolution Company Ltd (IDRCL) - IBA has

also set up of IDRCL to provide debt management service to NARCL comprising of sectorial experts and turnaround specialists. Bank has invested Rs. 0.80 crore in the company with 4% holding.

National Commodities Management Services Ltd. (NCML) is promoted by the National Commodity and Derivatives Exchange Ltd. (NCDEX). It was incorporated on 28.09.2004 to promote and provide collateral management services for securing, managing and controlling securities and commodities. Bank holds stake of 2.34% in the equity capital of the company with Investment of Rs. 3.00 crore.

SWIFT India Domestic Service Pvt. Ltd. a joint venture company promoted by SWIFT and 9 major Banks including Bank of India. SWIFT is holding 55% equity and remaining 45% is held by 9 major Banks. Bank of India has an equity stake of 2.81% in the company with Rs. 7.71 crore Investment.

Acuite Ratings & Research Limited (Earlier SME Rating Agency of India Ltd. (SMERA))

06 by SIDBI in association with Dun & Bradstreet, one of the leading providers of commercial data and analytics. The Companys objective is to provide comprehensive, transparent and reliable ratings which would facilitate greater and easy flow of credit to SME sector. Bank holds a stake of 1.96% in the equity capital with investment of Rs. 0.28 crore.

OTHER STRATEGIC INVESTMENTS:

Bank also has strategic investments in SIDBI (Rs. 45.30 crore), Metropolitan Stock Exchange of India (Rs. 27.50 crore), ONDC (Rs. 20.00 crore), NPCI (Rs. 10.00 crore), Invent Assets Securitization and Reconstruction Pvt. Ltd. (Rs.10.00 crore), SBIDFHI (Rs. 5.54 crore), CERSAI (Rs. 2.16 crore), Agricultural Finance Corporation Ltd. (Rs. 1.26 crore), Central Ware Housing Corporation Ltd. (Rs. 1.11 crore), PSB Alliance (Rs. 2.14 crore), CSC e-Governance services India Ltd. (Rs. 1.00 crore), CCIL (Rs. 0.50 crore), U.V. Asset Reconstruction Co. Ltd. (Rs.0.15 crore).

27. FRAUD RISK MANAGEMENT

Good corporate governance serves as an important factor in control of fraudulent activities. It may be true that Fraud itself cannot be eliminated but fraud risks can be managed and mitigated like other business risks with a proactive framework such as -

• Devising and managing Fraud Risk Management Framework with board approved Policy supported by Operational Manual & SOPs,

• Timely Reporting of Frauds to Regulators and Board,

• Diagnosis and root cause analysis of fraud cases and implementation of remedial measures and steps to mitigate risks thereof in respect of product deficiencies with support from stake-holders departments at HO,

• Dissemination of modus operandi & reasons for occurrence of fraud by way of Circulars / instructions to avoid the risk of recurrence of frauds of similar nature, at branches,

• Sensitizing staff through short alert messages through tickers / periodical messages through MMS and training/ Video Conferencing on Fraud prevention in coordination with Learning & Development Dept,

• Enterprise wide Fraud Risk Management Solution (EFRMS) encompassing all non-credit delivery channels except cards; which is being monitored

through separate solution, has been implemented covering domestic branches and one overseas centre, with CORM approved SOP.

• Working on ‘Indian Cyber Crime Coordination Centre (I4C) portal managed by LEAs to provide required data in coordination with Digital Banking Department and Freezing of the accounts for blocking further damage to customers,

• Filing of Complaints with Law Enforcement Agencies (LEAs) by branches/ controlling offices.

• Issuance of LOCs as per extent guidelines of IBA (Indian Banks Association) basing on direction from MHA (Ministry of Home Affairs).

Highlight during the year:

/ Perpetration of new frauds reported during the FY 2023-24 is Rs.131.31 crore (excluding 7 frauds of Rs.735.39 Crore which are re-reported on reexamination) which shows significant reduction on comparing with frauds reported in FY 2022-23 amounting to Rs.582.59 crore Seven cases with amount involved Rs.735.39 crore which were deactivated by RBI as per Supreme Court verdict dated 27.03.2023 are re-reported by us during FY 202324 after re-examination, complying with Principle of Natural Justice. Hence, excluding these 7 cases, involving amount of Rs.735.39 crore, total amount of fraud reported in FY 2023-24 is Rs.131.31 crore only.

/ Internal frauds due to staff involvement was amounting to Rs.15.19 crore in FY 2023-24 which consist of 11.57% of newly reported frauds of Rs.131.31 crore.

28 VIGILANCE MANAGEMENT:

Vigilance department is headed by Chief Vigilance Officer for vigilance administration in the Bank under the general superintendence of Central Vigilance Commission (CVC). The vigilance department covers all vigilance related matters of banks officials in domestic operation, overseas operations, and subsidiaries.

The vigilance administration of three Regional Rural banks sponsored by Bank of India, viz. Vidharbha-Konkan Gramin Bank, Aryavart Bank and Madhya Pradesh Gramin Bank are also supervised by Vigilance Department.

The Vigilance Department works under Chief vigilance Officer assisted by two Deputy General Managers and other officials having background/experience in the field of operations, investigation and disciplinary matters. For operational convenience, Vigilance Department has stationed one Vigilance Officer in each zone under the direct control of Vigilance Department, Head Office. Concurrent Auditors, working at overseas centres, perform the role of Vigilance Officer for overseas branches.

The Vigilance department deals with all 3 functions of vigilance administration such as, Preventive, Punitive and Surveillance vigilance with the objective of enhancing the level of managerial efficiency and effectiveness in the organisation. Communications covering gist of circulars, guidelines, and instructions etc., issued by the DFS, DoPT, CVC are circulated to field functionaries/offices from time to time along with other related subjects of preventive vigilance.

29. DIVIDEND DISTRIBUTION POLICY

In terms of Regulation 43A of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Bank has formed a Dividend Distribution Policy and the same is available on our website -

https://bankofindia.co.in/documents/20121/0/ DDP.pdf/ba6223a7-2777-01 2c-3ca7- f27b7f718d9a?t=1663666944772

ACKNOWLEDGEMENT:

The Board expresses its gratitude to the Government of India, Reserve Bank of India and Securities and Exchange Board of India and other regulatory authorities for their valuable guidance and support. The Board also thanks the financial Institutions and correspondent banks for their co-operation and support. The Board acknowledges the unstinted support of its customers, business associates, bondholders and shareholders. The Board also wishes to place on record its appreciation of staff members for their dedicated service and contribution for the overall performance of the Bank.

For and on behalf of the Board of Directors

	Sd/-
Place : Mumbai	Rajneesh Karnatak
Date : 10 May, 2024	MD & CEO