Global Economy
Overview
In the face of geopolitical tensions, efforts to combat inflation, and a decrease in demand, the global economy exhibited remarkable resilience in FY2024. The International Monetary Fund (IMF) projected a steady 3.2% annual growth for the world economy in 2023, which is expected to be maintained throughout 2024 . Global growth is projected to diverge according to different economic zones. Advanced economies as a bloc are expected to grow by 1.7% and 1.8% in 2024 and 2025, respectively, compared to 1.6% estimated in 2023. Emerging Market & Developing Economies are expected to grow by 4.2% in 2024 and 2025 compared to 4.3% estimated for 2023. India is expected to remain the fastest-growing economy, with a growth of 7.6% for FY2024 and 7.0% for FY2024-25.
The global economy is recovering from the impacts of the Covid-19 pandemic and the Russia-Ukraine war. Supply constraints have eased, but inflation remains a concern due to volatile oil prices. Contact-intensive services, which were heavily affected during the pandemic, have witnessed demand and supported growth. However, manufacturing has faced challenges due to input cost pressures, supply chain disruptions, and the China lockdown affecting the availability of essential inputs and slowing global economic growth. According to the World Economic Outlook report released by the IMF in April 2023, global growth is projected to reach 2.8% in 2023 and 3.0% in 2024. Global inflation is expected to moderate to 5.9% in 2024 from 6.8% in 2023, further declining to 4.5% in 2025.
Projections
As per the projections of the International Monetary Fund (IMF), the global economy is projected to expand by 3.2% in 2024. Much of this growth would depend on scaling down geopolitical tensions and more significant trade flows. After contracting by 1.2% in the calendar year 2023, world merchandise trade volume is expected to grow by 2.6% in 2024 and 3.3% in 2025.
Geopolitical tensions and their increased ramifications on the global economic and political order have nudged central banks to expand their foreign reserves to tackle various global risks emanating from financial markets, political stability, and increased hostility between countries. Record buying of gold by central banks in 2022, followed by continued momentum in 2023, indicates that central banks are diversifying their reserves by accumulating gold, which has emerged as a safe hedge in present times. The gold prices have increased from $1295/Oz in March 2019 to $2171/Oz in March 2024.
Advanced Economies
Advanced economies are projected to grow by 1.7% in 2024 and 1.8% in 2025, compared to 1.6% growth in 2023. The U.S. economy faced a sharp slowdown in the first three months of 2024, with 1.6% growth compared to the 3.4% growth reported in the last quarter of 2023. Inflation remains away from the target of 2%. Positive indications of strong labour markets and continued consumer spending maintain an optimistic view. Challenges such as high interest rates and government debt are expected to see some downward revision by the end of the year.
Growth in the Eurozone is expected to remain stagnant in 2024, though better compared to last year. There is divergence in economic growth among countries, with southern European countries faring better than their northern counterparts. Overall economic activity in both manufacturing and services has improved over the last year but still not enough to significantly boost growth. Rebound in tourism numbers also bodes well for the recovery of the bloc.
Japans growth estimates for 2023 were lowered to 1.3% due to weaker external demand and investment. However, Japans economy grew at 1.6% in January-March 2023, indicating a rebound after a technical recession last year. This growth momentum can be attributed to government- provided price relief measures and strong wage growth. Core consumer inflation in Japan reached 3.1% in March 2023, exceeding the target of 2%, while the Bank of Japan continues to maintain an ultra-loose monetary policy stance.
Emerging Market and Developing Economies
Emerging Market and Developing Economies (EMDEs) are projected to grow by 4.2% in 2024 and 2025, a slight rebound from the 3.9% estimated for 2023. India continues to be a major growth driver within this group, with a projected GDP growth rate of 6.8% for FY2024 and 6.5% for FY2024-25.
Chinas growth is supported by targeted government policies, although structural issues such as the real estate crisis, unfavourable demographics, and trade tensions with the U.S. and Europe present significant challenges. The World Trade Organization (WTO) forecasts a growth of 2.6% in world merchandise trade volume for 2024, following a decline in 2023. Despite economic shocks, global trade has shown resilience, with improved industrial activity and lower commodity prices expected to support growth.
The share of Emerging Market and Developing Economies (EMDEs) in world GDP is 58.3%, with China accounting for 18.5%. EMDEs are expected to experience a dip in growth at
3.9% in 2023 before rebounding to 4.2% in 2024, according to the IMF report.
India Economy
GDP Growth
Indias annual GDP growth for FY2024, as per the National Statistical Office (NSO), is expected to be 7.6%. This robust growth is driven primarily by strong performances in the manufacturing, construction, and services sectors. The manufacturing and construction sectors are estimated to grow by 8.5% and 10.7% respectively, fuelled by a base effect and significant investment. The services sector is projected to expand by 7.5%, a slight decline from the 10.0% growth registered in FY2023 but still higher than the pre-pandemic average of 6.6%. However, agriculture experienced a sharp drop due to erratic rainfall, with food grain production standing at 309.3 million tonnes compared to 329.6 million tonnes in FY2023. Moving forward, growth in FY2024-25 is expected to be driven by improved private and public investment and consumption demand, as indicated by the rise in project announcements and an uptick in consumer confidence. Notably, bank credit to large industries grew at 7% in FY2024, the highest since FY2018-19, and bond issuances by the private sector reached 8.4 lakh crore, the highest since 2008.
Policy Rates
The Reserve Bank of India (RBI) has kept the policy repo rate unchanged at 6.5% since February 2023. This follows an increase of 250 basis points from April 2022 to February 2023 to combat inflation. The stable policy rate has supported economic growth while keeping inflation within the targeted range. This stability has also led to an increase in bank lending rates, with the Weighted Average Lending Rate (WALR) on fresh rupee loans of Scheduled Commercial Banks (SCBs) rising to 9.37% in March 2024 from 9.32% in March 2023.
Inflation
Inflation in India has moderated significantly, with Consumer Price Index (CPI) inflation averaging 4.7% in April 2023 and 5.6% in March 2023. Core inflation reached a four-year low of 3.25% in March 2024, aided by steady demand and easing supply constraints. The stable inflation outlook has allowed the RBI to maintain its policy rate, fostering a conducive environment for economic growth.
Industrial Production
The Index of Industrial Production (IIP), which measures industrial output, recorded a growth of 1.1% in March 2023. The IIP had been consistently growing since Diwali, indicating a sustained improvement in industrial activity. The Purchasing Managers Index (PMI) for manufacturing in April suggests continued resilience in the manufacturing sector.
Currency Exchange Rates
The Indian rupee experienced depreciation against the USD, reaching 82.6 per USD in mid-March 2023. This depreciation was driven by global banking instability, significant capital outflows, and the RBIs interest rate hikes. Despite these pressures, the rupee remained relatively stable, supported by a balanced current account and strong import demand.
Foreign Portfolio Investors
Foreign Portfolio Investors (FPIs) were net sellers for most months in FY2024. However, the inclusion of Indian government securities in global bond indices, like JP Morgan and Bloombergs emerging market indices, buoyed the debt market, attracting the highest FPI inflows in nine years. This influx of foreign capital underscores confidence in Indias economic fundamentals and growth prospects.
By maintaining a focus on domestic demand, fostering strong credit growth, and ensuring policy stability, India is well-positioned to sustain its economic growth and attract substantial foreign investments in the coming years.
Banking Sector Overview
Credit Growth
Bank credit growth surged in FY2024, reflecting the recovery in economic activities. Non-food bank credit of Scheduled Commercial Banks (SCBs) grew by 20.02% year-on-year as of March 2024, compared to 15.4% growth in the previous year. This robust growth was driven by higher retail demand and economic recovery from the pandemic. Industry credit growth rebounded to 9.0% in FY2024 from 5.6% in FY2023, led by improvements in credit to large industries and stable growth in the MSME (Micro, Small & Medium Enterprises) segment. Credit flow to the infrastructure sector expanded at a pace of 6.5% in FY2024 compared to 0.4% in FY2023. The agriculture sector witnessed a credit growth of 20.1% in FY2024 compared to 15.4% in the previous fiscal year. Credit flow to the services sector grew at a pace of 22.9% in FY2024 compared to 19.6% in FY2023.
Deposit Growth
Aggregate bank deposits recorded a growth of 13.5% in FY2024 compared to 9.6% in the previous year. This was driven by significant interest rate increases, which made term deposits more attractive. Despite the higher growth rate of deposits, credit growth outpaced deposit growth, leading to an increase in the credit-deposit ratio from 75.8% in March 2023 to 80.3% in March 2024. The weighted average domestic term deposit rate (WADTDR) on new deposits rose by 222 basis points from May 2022 to February 2023. This increase was more pronounced for retail deposit rates compared to bulk deposit rates, reflecting a shift in focus by banks towards securing more stable retail deposits.
Asset Quality
The asset quality of SCBs improved significantly, with the overall non-performing assets (NPA) ratio decreasing to 3.2% at the end of September 2023 from 3.9% at the end of March 2023. This improvement was observed across all productive sectors and industries, with the gross non-performing asset ratio being the lowest for personal loans. The capital to risk- weighted asset ratio (CRAR) stood at 16.8% at the end of September 2023, against the regulatory minimum of 11.5%. The common equity tier 1 (CET1) ratio was 13.7% compared to the regulatory requirement of 8%.
Profitability
The banking sector saw enhanced profitability, driven primarily by a rise in net interest income. Public sector banks cumulative profit crossed 1.4 trillion in the financial year ended March 2024, recording a growth of 35% over the previous year. This increase was achieved despite the challenging international financial landscape, reflecting the resilience and strong earnings of the Indian banking industry.
Interest Rates
The policy repo rate remained unchanged at 6.5% throughout FY2024. Despite a significant fall in core inflation to a four- year low of 3.25% in March 2024, the stable policy rate facilitated ample room for the transmission of past rate hikes. The weighted average lending rate (WALR) on fresh rupee loans of SCBs increased to 9.37% in March 2024 from 9.32% in March 2023, while the WALR on outstanding loans rose to 9.83% from 9.72% in the same period. The increase in term deposit rates exceeded that in lending rates, indicating a higher demand for sustainable funds from depositors.
Central Bank of Indias Business
Total Business Growth
Central Bank of India (CBI) achieved significant business growth in FY2024, surpassing its set targets. The total business volume increased from 577,075 crore to 636,756 crore, representing a year-on-year growth of 10.34%. This growth outperformed the Banks guidance of 10% to 12% . The Banks robust performance was attributed to a strategic focus on asset quality, technological advancements, and a customer-centric approach. CBI recorded its highest-ever net profit of 2,549 crore in FY 2024, up from the previous record set in 2023.
Advances and Credit-Deposit Ratio
CBI demonstrated substantial growth in advances, with total advances increasing from 217,779 crore to 251,745 crore, marking a growth rate of 15.60%. Within this segment, the Retail, Agriculture, and MSME (RAM) category saw an increase from 144,735 crore to 167,126 crore, representing a growth rate of 15.47%. Corporate advances also showed healthy growth, rising from 73,044 crore to 84,619 crore,
indicating a growth rate of 15.85%. Consequently, the credit-deposit ratio improved significantly from 60.86% to 65.59%, highlighting the Banks expanding lending activities compared to its deposit growth.
Performance Highlights
CBIs focus on maintaining a balanced credit portfolio resulted in a net interest margin (NIM) of 3.40%, surpassing the target of more than 3%. The gross non-performing assets (NPA) ratio remained slightly above the target range of 4.00% to 4.25% at 4.50%, while the net NPA was well-controlled at 1.23% . The Bank also demonstrated a strong provision coverage ratio (PCR) of 93.58%, surpassing the target of more than 92%. The slippage ratio was kept low at 0.57%, and the credit cost was below the target range at 0.85%.
Resource Mobilisation
During the period from March 2023 to March 2024, CBI experienced a 7.16% growth in total deposits, which increased from 359,296 crore to 385,011 crore. CASA (Current Account Savings Account) deposits rose from 180,312 crore to 191,969 crore, reflecting a growth rate of 6.46%. This growth was driven by an increase in current deposits, which grew by 2.63% from 17,781 crore to 18,248 crore, and savings deposits, which grew by 6.88% from 162,531 crore to 173,721 crore. The share of CASA in total deposits was well-maintained at 50.02%.
CASA Deposits
CASA deposits constituted a significant portion of the Banks deposit base, increasing from 180,312 crore to 191,969 crore, a growth rate of 6.46%. This growth was driven by both current and savings deposits, highlighting the Banks strong deposit mobilisation strategy. The proportion of CASA deposits in total deposits remained stable at 50.02%, underscoring the Banks emphasis on low-cost deposit growth.
Core Deposits
Core deposits, which include both CASA and core time deposits, rose from 357,840 crore to 383,808 crore, marking a growth rate of 7.26%. Core time deposits alone grew by 8.06%, increasing from 177,528 crore to 191,839 crore. This growth in core deposits reflects the Banks strategy to secure stable and long-term funding sources.
New Initiatives
Technological Transformation
Central Bank of India (CBI) has been actively transforming its technological infrastructure to enhance operational efficiency, improve customer experience, and support digital banking services. The Bank implemented an AI-based Chatbot named Cent Chanakya to assist branch staff in responding
to customer queries more effectively. Additionally, the Bank launched a Digital Lending Platform designed to streamline loan products with a customer-centric approach, significantly reducing turnaround time. This platform utilizes data from standard sources to minimize subjectivity in decision-making. CBI also introduced a Micro-services based Containerised Platform for digital applications and automated tools for application integration and deployment, enhancing the Banks technological capabilities.
Focus on Asset Quality
CBI maintains a strong focus on asset quality, aiming for credit costs below 1%. The Bank emphasizes maintaining robust corporate and MSME books to mitigate risks and ensure a balanced credit portfolio. This approach involves developing early warning systems to identify and manage stressed accounts proactively, thereby enhancing overall asset quality. The Bank has set a strong provision coverage ratio (PCR) of 93.58%, exceeding the target of more than 92%, and maintains a low slippage ratio of 0.57%, below the target range of less than 1%.
Fee-Based Income Growth
In FY2024, CBI registered a year-on-year growth of 2.85% in fee-based income. This growth was driven by various factors, including PSLC sales, recoveries, and other miscellaneous income. The Bank expects fee-based income and service charges to remain steady, focusing on diversifying revenue streams to enhance financial stability. The implementation of these initiatives underscores the Banks commitment to expanding its income base beyond traditional interest income.
Restructured Book Management
CBI maintains stability in its restructured book and has a strong grip on MSME collections. This initiative involves actively managing and monitoring restructured assets to ensure timely repayments and minimize credit risks. By maintaining a balanced approach to restructured book management, the Bank aims to uphold asset quality and financial health. The Banks proactive measures in managing restructured assets contribute significantly to its overall performance.
Cost-to-Income Ratio Optimization
CBI aims to improve operational efficiency by targeting a cost-to-income ratio of below 50% in the next fiscal year. The Bank has implemented various strategies, including streamlining processes, optimizing resource allocation, and implementing cost-saving measures. These initiatives are designed to enhance profitability while maintaining high service standards. The Banks efforts to control costs are evident in its consistent performance and strategic focus on operational efficiency.
Reduction in Gross NPA
CBI projects a reduction in gross non-performing assets (NPA) through planned initiatives focused on resolving stressed assets. By actively managing and resolving these assets, the Bank aims to strengthen its balance sheet and improve overall asset quality. The gross NPA ratio stood at 4.50%, slightly above the target range of 4.00% to 4.25%, while the net NPA was well-controlled at 1.23%. These figures reflect the Banks ongoing efforts to manage credit risks effectively and maintain a healthy loan portfolio.
Emerging Business
Co-Lending Partnerships
Central Bank of India (CBI) has significantly expanded its co-lending initiatives in alignment with the RBI guidelines. These initiatives are aimed at serving the unserved and underserved segments of the market, particularly within the Retail, Agriculture, and MSME (RAM) sectors. During FY2024, CBI established co-lending partnerships with 12 additional NBFCs, bringing the total to 26 NBFCs/HFCs. These partnerships have enabled the Bank to support the development and expansion of the RAM sectors, contributing to overall economic growth and fulfilling diverse financing needs.
The impact of these co-lending initiatives on advances growth during the fiscal year is as follows:
Segment |
Sanctions during FY2024 ( crore) | Outstanding as on 31st March 2024 ( crore) |
MSME |
5,461.02 | 5,798.78 |
Retail |
1,980.70 | 5,349.74 |
Agriculture |
7.05 | 5.82 |
Corporate |
391.47 | 216.04 |
Total |
7,840.24 | 11,370.38 |
These partnerships have significantly bolstered the Banks presence in the priority sectors and enabled the provision of credit to a wider range of borrowers.
Performance Highlights of TReDS Platform
The Trade Receivables Discounting System (TReDS) platform has shown remarkable performance during FY2024, reflecting the growing acceptance and adoption of the platform by corporates and public sector undertakings (PSUs). The TReDS platform facilitated seamless transactions and provided much-needed liquidity to MSME businesses.
Performance highlights as of 31st March 2024 include:
• Total outstanding on the TReDS platform: 2,011.44 crore, a growth of 67%.
• Addition of 26 new corporates with a total exposure of 672 crore.
• Enhancement of exposure in existing accounts amounting to 300 crore.
• Total interest earned during the year: 114.34 crore, compared to 52.29 crore in the previous year.
• Achieved turnover of 11,210.84 crore against 6,098.94 crore in FY2023.
There were no overdue amounts in the TReDS portfolio as of 31st March 2024, highlighting the platforms efficiency and reliability in facilitating trade receivables financing.
Credit Highlights
Advances Growth
Central Bank of India (CBI) saw a significant increase in its total gross advances, which reached 251,745 crore as of March 31,2024, reflecting a growth rate of 15.60% compared to the previous year. This robust growth is attributed to the Banks strategic focus on expanding its lending portfolio across various sectors, including Retail, Agriculture, and MSME (RAM). The RAM sector, in particular, experienced substantial growth, with advances increasing from 144,735 crore to 167,126 crore, representing a growth rate of 15.47%. Corporate advances also saw a notable rise from 73,044 crore to 84,619 crore, indicating a growth rate of 15.85%. The Banks credit-deposit ratio improved from 60.86% to 65.59%, highlighting increased lending activity relative to deposit growth.
Loan Policy Updates
CBI updated its loan policies and master circulars to enhance asset quality and manage credit risks effectively. These updates included rationalizing interest rates to improve competitiveness in the market and bringing all borrowal accounts under the regulatory limits of the Large Exposure Framework. The Bank introduced the Corporate Credit Guarantee Enhancement Line (CGECL) for eligible corporate accounts and invoked the regulatory framework for One Time Restructuring (OTR) of eligible accounts. Additionally, CBI launched the Green Channel to provide centralized access for corporate customers, streamlining their relationship with the Bank. The Bank also implemented a standard operating procedure (SOP) for managing downgrades in external credit ratings and extended the EBLR-linked ROI product for tenors ranging from over 2 years up to 15 years. Furthermore, internet banking services were made available to all corporate customers and CC/OD account holders, and guidelines were established for providing financial assistance to enhance ethanol distillation projects.
Corporate Credit
During FY2024, CBI sanctioned fresh corporate credit amounting to 72,009.00 crore. The Bank realigned its
corporate portfolio with an increased exposure to AAA-rated borrowers to ensure high credit quality. This realignment was supported by the establishment of Credit Processing and Approval Centres (CPAC) at regional offices, which empowered branches in credit decisions and facilitated streamlined pre-disbursal activities. The Bank also set up a War Room at the Central Office to monitor and follow up on Special Mention Accounts (SMA) with exposure up to 1 crore, while accounts with exposure above 1 crore were monitored by the Credit Monitoring Department. Additionally, CBI conducted a quarterly review of loan accounts, including those of listed companies, to monitor actual business performance. These measures collectively contributed to enhancing the Banks corporate credit portfolio and maintaining high standards of credit quality.
Credit Monitoring & Policy
Credit Monitoring Activities
The Credit Monitoring & Policy department is responsible for several key practices to ensure effective credit monitoring. These activities include:
1. Credit Monitoring Committees: Established at
controlling offices and large branches, these committees conduct monthly meetings to discuss credit monitoring matters, including the evaluation of delegated lending powers and root-cause analysis of Special Mention Accounts (SMA).
2. Loan Review Mechanism: The Bank monitors the coverage and closure status of loans under this mechanism, ensuring regular reviews and updates.
3. Stock Audits: Conducted for borrowed CC/OD accounts of 5 crore and above to ensure the accuracy of inventory valuation and verification.
4. Early Warning Signals (EWS): The Bank monitors EWS through a dedicated portal to identify potential financial distress in borrowal accounts. Accounts displaying EWS are red-flagged for further investigation, following RBI guidelines.
5. Quarterly Review System: This system reviews loan accounts, including those of listed companies, to monitor actual business performance.
Documentation and Compliance: Regular verification of securities, collateral documentation, and timely submission of loan account details to Credit Information Companies and NeSL (Information Utility) are ensured. The Bank also submits default reports and other regulatory returns as required .
Early Warning Signals
The Early Warning Signals (EWS) system is an essential component of the Banks credit monitoring framework. It helps in the early detection of potential financial distress in borrowal
accounts, allowing the Bank to take proactive measures. The EWS system includes a dedicated portal for monitoring signals and red-flagging accounts that exhibit signs of financial stress. This approach aligns with RBI guidelines and helps in the timely resolution of potential issues.
Specialized Monitoring Agencies
The Central Bank of India engages Specialized Monitoring Agencies (ASM) to continuously monitor the operations and transactions of large-value borrower accounts. This continuous monitoring helps in ensuring transparency and timely identification of any discrepancies or financial distress. Additionally, the Bank has established Credit Processing and Approval Centres (CPAC) in regional offices to empower branches in credit decisions and facilitate streamlined verification of pre-disbursal activities.
The War Room at the Central Office monitors and follows up on all SMA accounts with exposure up to 1 crore, while accounts above 1 crore are monitored by the Credit Monitoring Department itself .
Credit Processing and Approval Centre (CPAC)
Credit Processing and Approval Centre (CPAC) is functioning since 2021 in all Regional Offices with the objective of empowering Branches in taking Credit decisions and, providing comfort to the branches and facilitating a single point verification of all Pre-Disbursal activities commencing from appraisal & sanction and documentation including security creation, compliance of other terms and conditions etc. and improvement of underwriting of credit.
War Room
Besides monitoring of accounts at all levels, War Room is functioning at Central Office with dedicated staff personnel in the follow-up of all SMA accounts with exposure up to 1.00 crore resulting in better monitoring and reduced slippages.
Digital Collection Management
An initiative to get end to end collection activity, Digital Collection platform has been integrated as a Unique Digital Platform and activation of loan re-payment via UPI
The Digital collections- Platform: Consists of 3 major sections as under:
1. Collections call center
2. Feet on Street (FOS)
3. IVR/Voice or Chat BOT
Priority Sector
In accordance with the Reserve Bank of Indias directives, Central Bank of India (CBoI) is mandated to allocate a minimum of 40% of its Adjusted Net Bank Credit (ANBC) or an equivalent credit amount from off-balance sheet exposure, whichever is higher, to the Priority Sector. For the fiscal year 2024, the Banks total Priority Sector Advances accounted for 53.14% of its ANBC, exceeding the regulatory requirement of 40%. This performance underscores CBoIs robust commitment to addressing the credit needs of priority sectors, as designated by the RBI. By surpassing the mandated allocation, the Bank demonstrates its dedication to supporting economic growth, fostering financial inclusion, and addressing the specific needs of sectors such as agriculture, micro, small, and medium enterprises (MSMEs), education, housing, and others.
Priority Sector Performance as of March 31, 2024
The detailed performance of the Bank under various segments of the priority sector is provided in the table below:
S l . |
Particulars | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Growth % |
No |
||||||
1 |
Priority Sector Advances | 88,222.47 Cr | 93,886.50 Cr | 103,513.76 Cr | 118,135.91 Cr | 14.22% |
2 |
Total Agriculture Advances | 36,206.99 Cr | 38,635.40 Cr | 42,110.35 Cr | 46,063.46 Cr | 8.67% |
3 |
MSME | 32,356.43 Cr | 34,138.55 Cr | 39,898.83 Cr | 49,870.32 Cr | 25.58% |
4 |
Education Loans | 2,724.77 Cr | 2,485.20 Cr | 2,242.55 Cr | 2,057.03 Cr | -8.27% |
5 |
Housing Loans (up to 25 Lakh) | 16,744.07 Cr | 18,503.23 Cr | 19,188.99 Cr | 20,090.44 Cr | 5.58% |
6 |
Other Priority Sectors | 24.77 Cr | 13.14 Cr | 6.64 Cr | 1.21 Cr | -81.78% |
7 |
Renewable Energy | 2.35 Cr | 2.25 Cr | 1.40 Cr | 0.99 Cr | -99.05% |
8 |
Social Infrastructure | 153.15 Cr | 104.40 Cr | 58.87 Cr | 41.96 Cr | -28.72% |
9 |
Export Credit | 9.93 Cr | 4.33 Cr | 6.13 Cr | 10.49 Cr | 71.13% |
During the financial year 2023-24, Central Bank of India witnessed an increase in credit deployment under the priority sector, reaching 118135.91 Crore. This represents a significant increase of 14,622.15 Crore compared to the previous year. To capitalize on the excess lending over Adjusted Net Bank Credit (ANBC) in the priority sector, the Bank engaged in sale transactions involving Priority Sector Lending Certificates (PSLCs). The Bank successfully sold PSLCs worth 1500.00 Crore under the Priority Sector, with 1500 Crore specifically under Small and Marginal Farmers. Additionally, the Bank holds an outstanding Rural Infrastructure Development Fund (RIDF) amounting to 1601.28 Crore under the Priority Sector, with 1198.28 Crore specifically allocated to the Agriculture sector as of March 31,2024.
Agriculture Sector
In the fiscal year under consideration, Central Bank of India reported a significant increase in total Agriculture credit, amounting to 3,953.11 crores—an increase from 42,110.35 crore as of March 31, 2023, to 46,063.46 crore as of March 31, 2024. This rise demonstrates the Banks robust commitment to supporting the agricultural sector and meeting the comprehensive financing needs of farmers. Furthermore, the net percentage of agriculture credit to Adjusted Net Bank Credit (ANBC) reached 20.57%, surpassing the regulatory target of 18%. This achievement underscores the Banks dedication to fulfilling its Agriculture sector lending obligations and contributing positively to the development of the agriculture industry.
Diverse Financial Schemes for Agriculture and Allied Sectors
Central Bank of India offers a broad array of schemes designed to meet the varied needs of the agricultural and allied sectors, thereby enhancing productivity and sustainable growth. These include:
• Cent Kisan Credit Card: Provides a consolidated credit facility covering cultivation costs, post-harvest expenses, marketing of produce, and working capital for maintaining farm assets.
• Cent Agri Gold Loan: Offers quick financing for crop production and investment credit in agriculture and allied activities against the pledge of gold ornaments and gold coins.
• Cent SHG Bank Linkage: Targets Self-Help Groups (SHGs) with revolving cash credit and term loans to support grassroots financial inclusion.
• DAY-NRLM: Finances women SHGs under a mission mode approach, launched by the Ministry of Rural Development.
• Cent AMI (Agriculture Marketing Infrastructure)
Scheme: Assists in creating marketing infrastructure with modern technology, grading facilities, quality certification, and scientific storage solutions.
• Cent Poly House, Green House, Shade-Net House:
Provides financial support for protected farming of high- quality commercial horticulture crops.
• Cent Dairy: Supports the establishment of dairy units for milk production.
• Cent Agri Clinic / Agri Business Centers: Offers financial assistance for setting up Agri Clinics and Agri Business Centers by qualified individuals.
• Cent Farm Machinery: Provides financing options for purchasing tractors, trailers, and other agricultural implements.
• Cent Kisan Sathi: Assists indebted farmers in reducing their liabilities to money-lenders and brokers.
• Cent Scheduled Tribe: Offers financial support to the weaker sections within the Scheduled Tribe category.
• Cent Poultry, Fishery, and Animal Husbandry Infra:
Supports the establishment and operation of poultry farms, traditional and commercial fishing activities, dairy processing, meat processing, and animal feed plants.
• Cent Agri Infra and Cent Solar (PMKUSUM Scheme): Provides medium to long-term debt finance for investment in post-harvest management projects and decentralized solar or other renewable energy- based power plants.
• Cent FPO and Cent FIDF: Facilitates financing for Farmer Producer Organizations (FPOs) and modernization of fisheries infrastructure.
• Cent PMFME Scheme and Cent Cold Storage:
Supports the setting up and modernization of Micro Food Processing Enterprises and meets the financial needs of cold storage and warehouse units.
• Cent Goatery & Other NLM Schemes: Finances establishment and operation of goatery, sheep, small- scale rural poultry, piggery, and small ruminant farms/ units.
• Cent Mushroom: Provides finance for mushroom cultivation and spawn production.
Enhancing Agricultural Credit Access
To accelerate the flow of credit to the agricultural sector, Central Bank of India has initiated several credit campaigns. Rural and semi-urban branches regularly organize monthly mega credit camps to promote and sanction new agricultural loans. Special credit camps have been organized for SHGs to enhance bank linkage, facilitating easier access to credit for these groups. Additionally, the Bank has ensured that eligible farmers are covered under the “Pradhan Mantri Fasal Bima Yojana” (PMFBY) by opting in for crop insurance. Emphasis has also been placed on investment credit and financing for SHGs in the agricultural sector, particularly focusing on extending credit to small and marginal farmers.
To further enhance credit flow and increase coverage under social security schemes, the Bank organizes village-level weekly camps at all rural and semi-urban branches to create awareness among farmers. These comprehensive efforts are designed to promote financial inclusion and support robust growth within the agricultural sector, reflecting Central Bank of Indias ongoing commitment to the nations agrarian economy.
Enhancing Financial Inclusion
Central Bank of India (CBoI) is dedicated to enhancing financial inclusion and empowering individuals from diverse backgrounds. The Bank has implemented numerous initiatives to ensure all customers have equal access to financial services, supporting the well-being and financial health of its customer base. These efforts are aligned with
the Sustainable Development Goals (SDGs), with a particular focus on improving financial literacy and access.
Financial Literacy and Counseling Centers (FLCC)
To achieve greater financial inclusion, CBoI has established Financial Literacy and Counselling Centres (FLCC) across various regions. These centres provide comprehensive financial education and guidance to individuals, helping them to make informed financial decisions and better understand the financial products and services available to them.
Engagement of Retired Personnel
Recognizing the valuable contributions of retired personnel, CBoI has brought them on board as consultants. This initiative allows the Bank to leverage their extensive experience and knowledge, benefiting customers through enriched service offerings and enhanced advisory capabilities.
Cent Yuva Product for Children
CBoI has introduced the ‘Cent Yuva product specifically designed to cater to the financial needs of children. This product includes insurance coverage under the Pradhan Mantri Jeevan Jyoti Bima Yojana, with the Bank bearing the premium costs. This initiative reflects the Banks commitment to supporting the younger generation by providing essential financial security.
Employee Well-being and Development
CBoI prioritizes the well-being of its employees by offering regular health check-ups under the staff welfare scheme. Additionally, aligning with the National Apprenticeship Promotion Scheme (NAPS) initiated by the Government of India, the Bank has appointed more than 17% of its total workforce as apprentices. This program fosters skill development and creates opportunities for young individuals to gain valuable work experience, contributing to their professional growth and readiness for future employment.
Expansion of Banking Services to Rural and Urban Areas
Central Bank of India has significantly extended its banking services to include 16,795 villages, utilizing 11,682 Business Correspondent (BC) agents. This expansive network aims to bring banking facilities closer to rural residents, thereby promoting financial inclusion. Moreover, the Bank has also opened 1,242 Urban Financial Inclusion centres, further broadening its reach and ensuring that urban communities have better access to banking services.
Growth in Financial Inclusion Transactions
During the reporting period, transactions in Financial Inclusion (FI) accounts opened through Business Correspondents (BCs) have shown a significant increase. The number of
transactions grew from 675.88 lakh in FY2023 to 972.23 lakh in FY2024, representing a year-on-year growth of 43.84%. This surge in transactions underscores the rising utilization and adoption of FI accounts by customers, highlighting the effectiveness of the Banks efforts in expanding financial inclusion and providing accessible banking services to underserved communities.
Business Conducted Through Business Correspondents
The business conducted through Business Correspondents (BCs) also witnessed a notable increase. The value of transactions rose from 4,001.86 Crore as of March 31, 2023, to 5,150.72 Crore as of March 31, 2024, marking a year-on-year growth of 28.70%. This significant growth emphasizes the success of the Banks strategy in expanding its reach and delivering financial services to unbanked and underserved areas.
Increase in Number of Accounts Through Business Correspondents
The number of accounts opened through Business Correspondents (BCs) experienced growth of 8.77% year- on-year. The total count of accounts rose from 164.41 lakh on March 31, 2023, to 178.84 lakh as of March 31, 2024. This increase reflects the Banks concerted efforts to promote financial inclusion and reach out to the unbanked population through the BC model.
Performance Under the Pradhan Mantri Jan Dhan Yojana (PMJDY)
Under the Pradhan Mantri Jan Dhan Yojana (FI-PMJDY) initiative during the fiscal year 2023-24, Central Bank of India achieved significant milestones:
• Business through Business Correspondent (BC) outlets witnessed substantial growth of 28.70%. The business volume increased from 4,001.86 Crore to 5,001.72 Crore.
• The total Financial Inclusion (FI) business recorded a growth of 21.24%. The business volume increased from 6,691.59 Crore to 8,112.98 Crore.
• The percentage of Aadhaar seeding in PMJDY accounts showed a positive trend, increasing from 88.59% to 89.57% for all PMJDY accounts and improving from 94.96% to 96.36% for all operative PMJDY accounts. This enhancement in Aadhaar seeding facilitates more efficient and effective financial transactions and identification verification processes.
Enrolment and Claims Settlement Under Social Security Schemes
Total enrolment under the Social Security Scheme as of March 31,2024, showed significant growth over the previous year. The details are as follows:
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Enrolments increased from 2,121,789 in FY2023 to 2,578,319 in FY2024, marking a growth of 21.52%.
• Pradhan Mantri Suraksha Bima Yojana (PMSBY): Enrolments rose from 6,820,243 to 9,429,172, a growth of 38.25%.
• Atal Pension Yojana (APY): Enrolments grew from 1,939,900 to 2,321,236, representing a growth of 19.66%.
Regarding claims settlements, out of a total of 18,552 death claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Central Bank of India settled and paid 15,007 claims. Similarly, out of 6,339 death claims under the Pradhan Mantri Suraksha Bima Yojana (PMSBY), the Bank settled and paid 4,736 claims. This demonstrates the Banks commitment to promptly addressing and settling claims, thereby supporting the financial security of beneficiaries.
Financial Literacy and Credit Counselling Centre (FLCC)
Central Bank of India has established 52 Financial Literacy and Credit Counselling Centres (FLCCs) across seven states: Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Rajasthan, and Chhattisgarh. Additionally, in Kerala, four FLCCs have been set up at the block level. We also have 178 Community Financial Literacy Centres (CFLs) strategically placed across these states, with the distribution as follows: West Bengal (12), Madhya Pradesh (49), Uttar Pradesh (21), Rajasthan (7), Bihar (61), Chhattisgarh (14), and Maharashtra (14).
These centres are pivotal in our efforts to educate a broad spectrum of individuals, functioning as platforms for both mass campaigns and individual counselling sessions. To enhance our outreach capabilities, the FLCCs have been equipped with vehicles that include Public Address Systems and LCD screens. These vehicles are utilised to disseminate information about various banking products and schemes effectively, thereby raising awareness among the masses.
The objective of these campaigns and sessions is to uplift the economic status of individuals and improve their standard of living by providing them with the necessary tools and knowledge to make informed financial decisions. To this end, during counselling sessions and village visits, we provide literacy materials, kits, books, and other essential resources, ensuring comprehensive support and education for all attendees.
Rural Self Employment Training Institutes (RSETIs)
Central Bank of India has established 46 Rural Self Employment Training Institutes (RSETIs) across nine states, including Assam, Bihar, Chhattisgarh, Madhya Pradesh, Maharashtra, Rajasthan, West Bengal, Uttar Pradesh and Assam. These RSETIs aim to identify, motivate, and assist unemployed youths in undertaking self-employment or wage employment activities. They impart knowledge and skills through organised training programmes and aim for a high settlement rate among trained candidates by facilitating bank credit linkage and providing hand-holding support for a period of two years.
During the fiscal year 2023-24, the RSETIs conducted a total of 1052 training programmes, successfully training 31,053 candidates. Remarkably, 23,883 of these candidates, representing 77% of the trainees, secured employment or established their own ventures, utilising support such as bank credit, wage settlements, or self-financing options. The credit linkage for settled candidates reached an impressive 14,174, accounting for 59.34% of those trained. This underscores the success of our RSETIs in promoting self-employment and enhancing financial independence among rural communities.
Additionally, Central Bank of India has taken further steps to support and streamline the operations of its RSETIs, Financial Literacy and Credit Counseling Centers (FLCCs), and Centres for Financial Literacy (CFLs). The bank has established a dedicated society/trust named “Central Bank of India Samajik Utthan Avam Prashikshan Sansthan” (CBI- SUAPS), which oversees the functioning and activities of the RSETIs, FLCCs, and CFLs. Moreover, a Governing Council has been set up at the apex level to provide overall guidance and supervision. The council is composed of the Managing Director and CEO of the bank as the Patron, the Executive Director as the President, and the General Manager as Vice President along with other members. This council plays a crucial role in ensuring effective management and coordination of these institutions, contributing significantly to their growth and success.
Social Banking
Central Bank of India plays a crucial role in the economic growth of the country by offering financial support across all sections of society through various government-sponsored schemes. Through these schemes, Central Bank of India supports various demographic segments and contributes to the socio-economic development of the country, aiding small businesses, entrepreneurs, and individuals in achieving sustainable growth and financial stability.
Performance Under Government-Sponsored Schemes
1. PM SVANidhi Scheme: Launched by the Government of India to provide financial aid to street vendors affected during the COVID-19 pandemic. The scheme aims to support street vendors across urban areas to resume their livelihoods. The number of accounts under the PM SVANidhi scheme grew from 166,211 to 309,582, registering a growth of 86.25%.
2. Stand Up India Scheme: Initiated on 5th April 2016 by the Prime Minister, this scheme facilitates bank financing for one Scheduled Caste (SC)/Scheduled Tribe (ST) borrower and one woman borrower per bank branch. It aims to enable them to set up greenfield enterprises in manufacturing, services, or trading. Accounts under this scheme have increased from 5,624 to 13,311, marking a growth of 136.68%.
3. Pradhan Mantri MUDRA Yojana (PMMY): Established by the Honorable Prime Minister on 8th April 2015, MUDRA (Micro Units Development and Refinance Agency Ltd.) focuses on developing and refinancing all non-corporate small business sector entities. The beneficiaries include micro and small enterprises involved in manufacturing, trading, and services. The disbursement under PMMY has grown from 3,605.71 crore to 5,397.25 crore, reflecting a growth of 49.68%.
4. PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme): Managed by the Ministry of Food Processing Industries, this scheme provides concessional finance to micro food processing enterprises to enhance their competitiveness and ensure sustainable development. The number of accounts benefiting from this scheme has increased from 1,080 to 2,250, showcasing a growth of 108.33%.
5. Prime Ministers Employment Generation Programme (PMEGP): This central sector scheme administered by the Ministry of Micro, Small, and Medium Enterprises (Mo MSME) is designed to cater to the financial needs of unemployed youth who are interested in starting greenfield projects. The disbursement under PMEGP escalated from 988.32 crore to 1,825.98 crore, marking an increase of 84.75%.
Lead Bank Performance
As the Lead Bank, Central Bank of India has assumed a pivotal role in 53 districts across eight states: Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Rajasthan, Chhattisgarh, and Sikkim. These districts collectively harbour approximately 25% of our branches, signifying a substantial portion of our operations. To ensure the effective implementation of the Lead Bank Scheme, the offices of our Lead District Managers are fully equipped with adequate staffing, robust infrastructure, and comprehensive resources.
These resources include independent premises, vehicles, computers, printers, telephones, internet connections, and dedicated email IDs.
In our efforts to elevate public awareness about our banks offerings, particularly in rural districts, we have strategically displayed information on key products such as the Kisan Credit Card and Central Artisan Credit Card on the vehicles assigned to our Lead District Managers. This initiative aims to enhance visibility and accessibility of our financial products to the rural populace.
Moreover, we actively engage in various developmental activities which underscore our commitment to regional growth and financial inclusion. These activities include the full implementation of Financial Literacy and Financial Inclusion Programs, aimed at educating the communities we serve. Additionally, we facilitate the training of unemployed rural youth through 46 Rural Self Employment Training Institutes (RSETIs), and actively promote the formation of Self-Help Groups (SHGs) and farmers groups. These initiatives are integral to our strategy of fostering sustainable development and enhancing financial literacy and independence in the regions under our Lead Bank responsibility.
MSME Department
Performance Highlights
During the financial year 2023-24, the Central Bank of India (CBI) made significant strides in supporting Micro, Small, and Medium Enterprises (MSMEs) through various initiatives and targeted programs. The total MSME advances increased from 39,898.83 crore as of March 31,2023, to 50,104.37 crore as of March 31,2024, marking a year-on-year growth of 25.58%. This impressive growth underscores the Banks commitment to bolstering the MSME sector, crucial for economic development and employment generation.
The percentage of microcredit to MSE reached 64.47% without PSLC, and the Bank achieved a year-on-year growth under Micro enterprises of 36.39%. To enhance the ease of doing business for MSMEs, the Bank implemented the Digi Auto Renewal scheme for MSME loans up to 10.00 lakh, resulting in the digital renewal of 42,230 accounts amounting to 1,994.54 crore.
Key Initiatives
CBI has launched several initiatives to support the growth and sustainability of MSMEs:
• New Schemes:
o Cent Hotel, Cent Energy Efficiency Scheme, Cent CA/CS/CMA, and Cent Export schemes were implemented.
o The Cent Energy Efficiency Scheme was specifically introduced to promote green energy.
• Digital Advancements:
o The Bank implemented Digi-Renewal Functionality for MSME loans up to 10.00 lakh.
• Partnerships:
o A tie-up with JIO (Jain International Organization) was established to boost the Stand Up India Scheme and Cent Mudra Scheme.
o The Bank has entered into agreements with CredAvenue Private Limited and Veefin Solution Limited to provide supply chain finance, enhancing liquidity for MSMEs involved in supply chain operations.
o Partnerships with Yubi Credit Marketplace Platform and JIO-Jain International Organisation to facilitate MSME financing under schemes like Pradhan Mantri Mudra Yojana (PMMY) and Stand Up India (SUI).
• Cent GST Scheme:
o This scheme offers working capital finance based purely on GST turnover, simplifying the credit assessment process for MSME borrowers. As of March 2024, the total outstanding under this scheme was 2,455.33 crore.
Future Roadmap
Looking ahead, CBI plans to introduce several new initiatives
to further support the MSME sector:
• Cluster-Based Finance: Customized products will be developed for cluster-based financing.
• Green Energy Financing: New schemes promoting green energy in compliance with Environmental, Social, and Governance (ESG) criteria will be launched.
• PABL Introduction: PABL (Professional and Business Loan) will be introduced based on transactions in current accounts maintained in the Bank.
• Product Review and Rationalization: Regular market studies and alignment with regulatory guidelines will ensure MSME products remain competitive and meet evolving market needs.
• Digital Service Expansion: Plans are underway to enhance digital service offerings, including the introduction of more digital platforms for MSME customers to streamline processes and improve service delivery.
• Incubator Tie-Ups: Partnerships with incubators that support entrepreneurs will be formed to better understand market potential and introduce customized MSME products under the startup category.
Active MSME Products
The MSME Department offers a wide range of products tailored to different business needs:
1. Cent Business
2. Cent Mortgage Business
3. Cent Contractor
4. Cent MUDRA
5. General MSME (IBA format)
6. Stand Up India
7. Cent WHR
8. NULM
9. Cent Weaver Mudra
10. PM Svanidhi
11. Cent Equipment Financing Scheme
12. Cent Arthias
13. Cent Business Gold Loan Scheme
14. Cent Shop
15. SRTO (Transport Operator)
16. Cent Kalyani
17. Cent Rental
18. Cent Ceramic
19. Cent Textiles Scheme
20. PMEGP
21. Mukhyamantri Udyam Kranti Yojana - M.P
22. Cent Vehicle Business
23. Cent Pragati
24. Credit Enhancement Guarantee Scheme for Scheduled Castes
25. Cent Sanjeevani
26. Cent Shop Kota
27. Indira Gandhi Shahari Credit Card Yojana - Rajasthan
28. Cent Open Term Loan
29. Cent GST
30. Jagananna Thodu
31. Cent Gold Jewellery Manufacturing Scheme
32. Commercial Vehicle DDR MP
33. Mukhya Mantri Gramin Path Vihreta Rin Yojana
34. PMJDY-OD
35. Cent Chinar
36. Mukhyamantri Ration Parivahan Yojana
37. Loan to Micro Finance Borrowers
38. Textile Cluster Scheme for Hyderabad & Warangal
39. Cent CA/CS/CMA
40. Cent Hotel
41. Cent Energy Efficiency Scheme
42. Cent Export
Discontinued Products
The following products were discontinued:
1. Cent CGECL
2. Cent Custom Hiring Centre (M.P)
3. Loan Guarantee Scheme for Covid Affected Sector
4. Central Laghu Udhyami Credit Card
5. Loan Guarantee Scheme for Covid Affected Tourism Service Sector
MSME Performance Metrics
These figures underscore the MSME Departments dedication to fostering growth and supporting micro, small, and medium enterprises through innovative schemes, digital advancements, and strategic partnerships. The Central Bank of India remains committed to ensuring financial inclusion and contributing to the broader economic landscape.
The table below details the performance of MSME loans, highlighting the growth achieved over the financial year:
Particulars |
31.03.2023 without PSLC |
31.03.2023 with PSLC | 31.03.2024 without PSLC |
31.03.2024 with PSLC | Y-o-Y Growth without PSLC | Y-o-Y Growth with PSLC |
MICRO Enterprises |
21,162 crore | 21,862 crore | 28,863 crore | 28,863 crore | 36.39% | 32.02% |
MSE |
35,358 crore | 36,058 crore | 44,771 crore | 44,771 crore | 26.62% | 24.16% |
MSME (PS) |
39,199 crore | 39,899 crore | 49,870 crore | 49,870 crore | 27.22% | 24.99% |
TOTAL MSME |
39,199 crore | 39,899 crore | 49,870 crore | 49,870 crore | 27.22% | 24.99% |
% of MSME Advance to Total Advance |
17.99% | 18.32% | 19.80% | 19.80% | 27.22% | 24.99% |
No. of Accounts in Micro Enterprises |
646,806 | 706,610 | 711,487 | 9.24% | ||
% Y-o-Y Growth in No. of Accounts |
-25.45% | 9.24% | 10% |
RBI Mandates (Prime Minister Task Force)
Particulars |
31.03.2023 Without PSLC | 31.03.2023 With PSLC | 31.03.2024 Without PSLC | 31.03.2024 With PSLC | Target Mar-24 |
MSE Portfolio (Amt. in crore) |
35,358 | 36,058 | 44,771 | 44,771 | NA |
% Y-o-Y Credit Growth under MSE |
12.68% | 14.91% | 26.62% | 24.16% | NA |
% of Micro Credit to MSE Credit |
58.68% | 60.63% | 64.47% | 64.47% | NA |
MICRO ENT. O/S AS ON 31.03.23 |
21,162 | 21,862 | 28,863 | 28,863 | 185,261 |
MICRO ENT. O/S AS ON 31.03.24 |
21,162 | 21,862 | 28,863 | 28,863 | 222,512 |
ANBC As on 31.03.2023 (in crore) |
185,261 | 222,512 | 185,261 | 222,512 | NA |
ANBC As on 31.03.2024 (in crore) |
185,261 | 222,512 | 185,261 | 222,512 | NA |
% of ANBC without PSLC |
11.42% | 11.80% | 39.39% | 32.02% | NA |
% of ANBC with PSLC |
11.42% | 11.80% | 39.39% | 32.02% | NA |
Retail Credit
Retail lending plays a significant role in the growth and development of the economy through increased consumer spending. These loans, typically offered for personal consumption, home and vehicle purchases, education, and home improvements, help diversify the risk profile of the Banks loan book. In FY 2023-24, retail lending constituted 28.28% of the Banks total credit, with advances growing by 13.50%, from 62,726 crore to 71,193 crore, underscoring the Banks success in capturing market opportunities and meeting evolving customer needs.
To further drive this growth, the Bank has leveraged the Account Aggregator platform for lead generation, strengthened relationships with intermediaries, and utilized digital ecosystems for lending. Strategic tie-ups with OEM vehicle manufacturers and festive season promotions have also contributed to the expansion in retail loans. In March 2023, the Bank sanctioned loans to 224,769 retail accounts totaling 19,730 crore, increasing to 260,226 accounts and 20,151 crore by March 2024.
This robust performance highlights retail lending as a key contributor to Central Bank of Indias loan book. During the fiscal year, the Banks strategic initiatives, including data mining for cross-sell and upsell opportunities and partnerships with OEM vehicle manufacturers for vehicle loans, played a crucial role in this growth.
Micro Enterprises Outstanding (O/S)
Particulars |
31.03.2023 Without PSLC |
31.03.2023 With PSLC | 31.03.2024 Without PSLC |
31.03.2024 With PSLC | ANBC As on 31.03.2023 (in crore) | ANBC As on 31.03.2024 (in crore) | Status Target on Mar-23 | Status Target on Mar-24 |
Micro Ent. O/S |
21,162 | 21,862 | 28,863 | 28,863 | 185,261 | 222,512 | ||
% of ANBC without PSLC |
11.42% | 39.39% | ||||||
% of ANBC with PSLC |
11.80% | 32.02% |
Key Segments of Retail Lending
• Housing Loans: 44,057 crore (61.88% of total retail loans), supporting home buyers.
• Auto Loans: 3,343 crore, facilitating vehicle ownership.
• Personal Loans: 4,514 crore, meeting individual financial needs.
• Education Loans: 4,284 crore, surpassing targets set by DFS, supporting students educational aspirations.
• Other Retail Loans: 14,995 crore, catering to consumer durables, lifestyle expenses, and small-ticket personal financing.
Technological Advancements
The retail lending landscape has evolved with digital innovations, including end-to-end digital sanctions, data mining, machine learning, and AI. These technologies enhance customer acquisition, cross-selling, and up-selling. The Bank has shifted from offering standard products to providing tailor-made solutions, leveraging fintech capabilities to improve customer engagement.
Strategic Initiatives
The Banks future growth strategy includes:
1. Monitoring Customer Demand: Continuously
reviewing products to align with market trends and customer needs.
2. Embracing Digital Lending: Leveraging digital
marketing and lending platforms to meet the expectations of next-generation customers.
3. Lead Generation via Account Aggregator Platform:
Strengthening intermediaries and aggregators for sourcing retail loan products.
4. Data Mining for Cross-sell and Upsell: Utilizing extensive data to identify opportunities.
5. Strategic Tie-ups: Collaborating with vehicle
manufacturers and companies like TATA Motors and Maruti Suzuki Ltd.
6. Festival Campaigns: Launching special campaigns during festive seasons to drive business growth.
7. Partnerships with Reputed Builders: Entering tie-ups with top builders for financing projects nationwide.
8. Government and Institutional Tie-ups: Targeting lending to employees of state governments, central government departments, and other institutions.
Future Outlook
Central Bank of India aims to sustain its growth momentum in retail lending through these strategic initiatives, expanding its retail loan portfolio, and providing tailored solutions to meet the diverse needs of its customers. By adapting to the changing ecosystem, leveraging technology, and maintaining
a robust risk management framework, the Bank is well- positioned for continued growth and customer satisfaction in the retail lending segment. Looking ahead, Central Bank of India aims to further boost retail loan growth by strengthening current initiatives and exploring new avenues. The Banks strategic plans include:
1. Monitoring Customer Demand: Regularly reviewing products to align them with market trends and customer requirements.
2. Embracing Digital Lending: Enhancing digital
marketing strategies and leveraging digital lending platforms to meet the expectations of next-gen customers.
3. Utilizing Account Aggregator Platform: For efficient lead generation.
4. Strengthening Intermediaries and Aggregators:
Expanding partnerships for sourcing retail loan leads, particularly mortgage loans.
5. Data Mining for Cross-Sell and Upsell: Extensive use of data analytics to identify opportunities for additional sales to existing customers.
6. Strategic Tie-Ups: Collaborating with vehicle manufacturers and reputed builders to provide customized retail asset products.
7. Special Campaigns: Launching special campaigns during festive seasons to attract customers and ensure substantial business growth.
8. Customized Products for Social and Environmental Causes: Launching products like Cent Grih Lakshmi for women empowerment and Cent e-vehicles and Cent Suryaghar for environmental sustainability.
These initiatives and strategic plans underscore the Banks commitment to sustaining its growth momentum, expanding its retail loan portfolio, and providing tailored solutions to meet the diverse needs of its retail customers.
Customer Care Department
In the fiscal year 2023-24, the Central Bank of India focused on strategic branch expansion and optimization to enhance its service delivery and market presence. These efforts contributed to the Banks growth and its ability to meet the evolving needs of its diverse customer base. The Bank adopted a comprehensive approach to branch expansion, targeting areas with significant business potential and customer demand. Overall, the efforts in FY2024 were aligned with its strategic goals of enhancing customer reach, improving service delivery, and promoting financial inclusion. These efforts contributed to the Banks growth and its ability to meet the evolving needs of its diverse customer base. This included opening new branches, upgrading existing ones, and merging or closing branches where necessary to
optimize operational efficiency.
Branch Expansion
As of March 31, 2024, the distribution of branches across various areas, factoring in the branches opened, merged, or closed during FY 2023-24, is as follows:
No Category |
Position as on 31.03.2023 | Position as on 31.03.2024 |
1 Rural |
1,600 | 1,606 |
2 Semi-Urban |
1,330 | 1,332 |
3 Urban |
769 | 771 |
4 Metro |
794 | 791 |
Total |
4,493 | 4,500 |
Enhancing Customer Service
Customer Care Department: The Planning, Development & Operation Department (PDOD) has been renamed as the “Customer Care Department” to emphasize the Banks commitment to customer care. The theme for 2024-25 is “Customer Satisfaction with Value Creation.”
Integrated Customer Care (ICC): The Bank has established a state-of-the-art ICC with a scalable business model focusing on timely responsiveness, outreach, advanced customer service, and quality assurance. The ICC is operational from Mumbai (from 05.02.2024) and Hyderabad (from 30.03.2024) and is integrated into the Banks Data Centre (DC) and Disaster Recovery (DR) architecture.
Communication Channels: An easy-to-remember number (1800 30 30) has been introduced for customer service. The ICC offers various communication channels including call/ voice, IVR, chat and chatbots, WhatsApp live chat, social media, email/web form, video banking, and co-browsing.
Multilingual Support and Accessibility: Services are offered in 10 regional languages, apart from Hindi and English. Doorstep banking services are available for senior citizens, visually impaired individuals, and differently-abled customers through the ICC.
Home Delivery Services: Home delivery of cheque books and ATM cards is available for customer convenience. Cheque books can be activated through SMS, mobile banking, or internet banking.
Technological and Digital Advancements UPI Lite and Digital Loan Facilities: Integration of UPI Lite functionality into BHIM Cent UPI (CentPay) and new digital loan facilities against PPF.
Complaint Management and Fraud Prevention: The
Bank has revamped its complaint management solution via a web portal. Positive Pay has been introduced to prevent
fraud by cloning or altering cheques, accessible through net banking, mobile banking, and branch networks.
Customer Onboarding and KYC Updates: Customer onboarding via video KYC has been implemented. Periodic KYC updates can be conducted through SMS, mobile banking, internet banking, and BC points using e-KYC. Customers receive SMS notifications before and after accounts become inoperative or dormant.
API Integration: ICC integration with the Customer Relationship Management (CRM) system supports lead generation, marketing, and sales management.
Product and Service Handling Product Management: ICC handles loans (retail and business), deposits, payments, and third-party products such as insurance and mutual funds.
Service Requests and Digital Support: Includes service requests, digital support for Net Banking, Mobile Banking, Bank Products, and grievance handling with defined turnaround times (TAT).
Campaign Management and Lead Generation: ICC
manages campaign management and lead generation to maximize benefits to the Bank.
Special Services for Pensioners and Senior Citizens
Dedicated Support: An exclusive toll-free number (1800 203 1911) is available for pensioners and senior citizens. Proactive outbound IVR services in five languages remind customers of payments and life certificate submissions.
Digital Life Certificates: Digital life certificates for pensioners can be booked through various channels, with doorstep collection using the Jeevan Pramaan App.
New Initiatives
New Facilities and Enhancements: Implementation of Interoperable Cardless Cash Withdrawal (ICCW) to enhance customer convenience, Green Channel Cash Deposits to reduce paper usage, and integration of JanSuraksha schemes (PMSBY & PMJJBY) across all CBS branches and digital channels.
Expanded Services: Customers can open PPF accounts and Senior Citizen Saving Schemes at any branch or through digital channels. Online subscriptions for Sovereign Gold Bonds and tax collection under TIN 2.0 are available through all branches and internet banking. Mandate registration for credit amounts in savings accounts from other banks is also available.
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International Division
Foreign Exchange Business
Central Bank of India has made significant advancements in its Foreign Exchange Business during FY 2024. The Banks total Foreign Exchange Business volume was 43089.71 crore in FY2024. The Bank undertook many strategic initiatives to enhance its Foreign Exchange Operations and expand its Global Footprint including traversal towards Centralisation of all its Forex Operations. The Bank has continued to streamline its processes and improve service delivery to better meet the needs of its customers engaging in International Trade.
Export Credit Portfolio
The Banks Export Credit portfolio also witnessed growth during FY2024. The total export credit extended by CBI increased from 4175.77 crore in FY2023 to 4188.85 crore in FY2024, reflecting a growth of 0.31%. This increase despite challenging situations throughout the year like Russia-Ukraine war, Israel-Palestine war as well as the Red Sea Crisis underscores the Banks commitment to supporting exporters and contributing to the countrys Foreign Exchange earnings. Central Bank of India has focused on providing tailored financial solutions to exporters, ensuring timely and adequate credit flow to boost export activities.
NRE and FCNR Deposits
Central Bank of India has seen a rise in Non-Resident External (NRE) and Foreign Currency Non-Resident (FCNR) deposits. The total NRE/FCNR deposits increased from 7185 crore as of March 31,2023, to 7372 crore as of March 31,2024, marking a growth of 2.60%. This increase indicates the trust and confidence, Non-Resident Indians have in the Banks services and the competitive interest rates offered on these deposit schemes.
Treasury, Funds and Investment
As of March 31, 2024, Central Bank of Indias investment portfolio stood at 1,49,538.13 crore, which includes Non-SLR and Non-Transferable Government of India Recapitalization bonds worth 19,580 crore. This reflects an increase of 4.83% compared to 1,42,652.89 crore as of March 31,2023. The composition of the investment portfolio of the Bank is as follows:
Sl No Composition |
31.03.2024 | 31.03.2023 |
1 SLR |
1,12,881.49 | 1,03,203.62 |
2 Non-SLR |
36,656.64 | 39,449.27 |
Total |
1,49,538.13 | 1,42,652.89 |
During the year, there were significant fluctuations in CPI headline inflation, primarily driven by volatility in food prices. In July 2023, headline inflation reached 7.44%, exceeding
the RBIs upper tolerance level of 6%. However, for most of the year, inflation remained within the RBIs tolerance level of 2-6%, except for July and August.
In response to moderated inflation, geopolitical conditions, and growth factors, the Monetary Policy Committee kept the policy rate constant at 6.50% throughout the year, following a spike of 250 basis points during FY 2022-23. The decision to include Indian government bonds in the JP Morgan Global EM Bond Index and Bloomberg EM Local Currency Government indices, starting from June 2024, along with the fiscal consolidation path of the central government and core CPI movement, are expected to be key drivers for softening yields across the curve.
Consequently, the 10-year benchmark yield closed at 7.06%, a decrease of 26 basis points compared to 7.31% on March 31,2023.
Snapshot of Treasury Income
Particulars |
FY 2022-23 | FY 2023-24 |
Profit on Sale of Investment |
273 crore | 637 crore |
Profit on Exchange Transaction |
303 crore | 247 crore |
Dividend Income |
8 crore | 8 crore |
Profit/Loss on Revaluation of Investment |
2 crore | 73 crore |
Treasury Income |
586 crore | 965 crore |
The profit from the sale of investments increased from 273 crore to 637 crore, and overall Treasury Income increased from 586 crore to 965 crore. The yield on investment (excluding trading profit) rose by 31 basis points from 6.26% in 2022-23 to 6.57% in 2023-24.
With a pause in the rate hike cycle, the Bank slightly increased the Modified Duration and PV01 of the Available-for-Sale (AFS) portfolio. As of March 2024, the Modified Duration and PV01 were 1.88 and 6.66 respectively, compared to 1.53 and 4.40 as of March 2023. These adjustments reflect the Banks efforts to manage its investment portfolio in a challenging interest rate environment.
Furthermore, the Bank shifted Central and State Government securities worth 4,288 crore from Held-to-Maturity (HTM) to AFS during FY 2023-24. This strategy allowed for better portfolio management and alignment with regulatory requirements.
Risk Management
Risk Management System/Organizational Set Up
Risk Management systems are now well established in the Bank. The Risk Management Committee of the Board of
Directors regularly oversees the Banks Risk Management policies/practices under Credit, Market and Operational risks & Pillar II risks. The Committee reviews the policies and procedures for pricing of products and assesses the risk models so as to remain in sync with the market developments and also identifies and controls new risks. The committee also regularly monitors compliance of various risk parameters by the concerned departments at the corporate level.
Risk Management Structure
At The operational level, various Committees such as Asset Liability Management Committee (ALCO) for Market Risk, Credit Risk Management Committee (CRMC) for Credit Risk and Operational Risk Management Committee (ORMC) for Operational Risk have been constituted comprising of members from the top management team. These Committees meet at regular intervals throughout the year to assess and monitor the level of risk under various Bank operations and initiate appropriate mitigation measures wherever necessary. The Bank has identified officers in the rank of Chief Manager/ Senior Managers/Managers to act as ‘Risk Managers at all the Regional/Zonal Offices. The Risk Managers act as the ‘Extended Arms of the Risk Management Department of the Central Office at the Zonal Level. The Bank has also identified officers at the senior level in various functional departments of Central Office to act as ‘Nodal Officer to look into various aspect of control & management of risk in the Bank. Bank has a well-documented Integrated Risk Management Policy.
Market Risk Management
The Mid Office plays a crucial role in the Central Bank of India by conducting regular reviews of the market position, funding patterns, and ensuring compliance with exposure limits, duration limits, counterparty limits, and other sensitivity parameters. These reviews provide valuable insights and are presented to the top management at regular intervals. To effectively manage risk, your Bank utilizes tools such as Value-at-Risk (VaR) and Duration gap analysis. These tools are employed on an ongoing basis to measure and mitigate potential risks to the banks profitability in the short term and equity value in the long term. In line with Basel III guidelines for Market Risk, your Bank has developed a model to estimate the capital charge on the trading portfolio. Your bank is modernizing the existing SAS Market Risk solution to enhance the Market Risk management capabilities. The enhanced solution would have additional capabilities and will make market risk management more dynamic and encapsulate the contemporary risk scenarios of the market. This solution is continuously calibrated to comply with the regulatory requirements and emerging risk management frameworks for effectively manage market risk. To ensure comprehensive risk management, your Bank has a board- approved Market Risk Management Policy in place. This policy serves as a framework to monitor and control market risk within the banks portfolio. Counterparty limits for
treasury operations are regularly reviewed and adjusted as necessary. The Asset & Liability Committee, chaired by the MD & CEO, is responsible for overseeing the developments in market risk. This committee monitors and assesses the banks exposure to market risk and takes necessary actions to mitigate potential risks
Credit Risk Management
Bank has implemented a comprehensive Rating Model for assessing the creditworthiness of borrowers across various sectors such as large corporates, infrastructure, NBFCs, SMEs, and agriculture. These rating models play a crucial role in evaluating the credit risk associated with each borrower and ensuring prudent lending practices. In addition to the rating models for corporate borrowers, your Bank has also developed Rating Models, known as scorecards, specifically designed for grading retail loans. These models enable your Bank to assess the creditworthiness of individual retail borrowers and determine appropriate risk ratings for their loans. The Credit Risk Management Committee, led by the MD & CEO, oversees and monitors the developments in credit risk management within the bank. This committee plays a key role in setting policies, reviewing credit risk management practices, and making informed decisions to mitigate credit risk exposure. Furthermore, your Bank has successfully implemented advanced approaches for capital computation using a SAS solution. This implementation enables your Bank to enhance its capital adequacy calculations and align with regulatory requirements, ensuring robust risk management practices.
Operational Risk Management
The Central Bank of India has implemented a robust Operational Risk Management framework guided by a Board- approved Operational Risk Management Policy. This policy ensures that your Bank has a comprehensive system in place to manage and measure operational risks aligned with its risk profile and risk appetite. The Operational Risk Management Committee (ORMC) oversees the implementation of the Operational Risk Management framework and ensures its regular monitoring. The committee reviews and approves the methodologies and tools used for operational risk assessment, including risk identification, assessment, and reporting methods. It also analyzes frauds, near misses, noncompliance events, breaches, and systemic improvements, presenting suitable controls and mitigations for managing operational risks. To mitigate risks associated with new products, processes, or activities, your Bank has established a New Product Approval Policy Framework. This framework provides guidelines for evaluating and managing the risks associated with introducing new products or activities, ensuring prudent risk management practices. Your Bank has also developed a Business Continuity Plan to ensure the uninterrupted delivery of products and services in the event of disruptions. This plan outlines the operating procedures
and predefined capacities to respond to and recover from disruptions, aligning with the banks business continuity objectives. In terms of data collection and reporting, your Bank has implemented an Incident Management Module (IMM) under the Integrated Risk Management Solution (IRMS) for the collection of loss event data and near miss events related to operational risk. This allows your Bank to track and analyze operational risk incidents for proactive risk management. The Operational Risk Management Committee, led by the MD & CEO, plays a vital role in overseeing the developments in operational risk management. The committee ensures that the banks operational risk management practices are effective, aligned with regulatory requirements, and support the banks overall risk management objectives.
Capital Planning
Bank has a robust ICAAP (Internal Capital Adequacy Assessment Process) policy in place. Bank has framed its risk appetite framework and intends to maintain capital ratios over and above the minimum requirements as per Basel III norms. Review of the capital vis a vis the estimates are undertaken on a quarterly basis.
Asset & Liability Management systems (ALM)
The Asset and Liability Management (ALM) function in the Central Bank of India plays a crucial role in measuring and managing the liquidity and interest rate risk of the bank. The primary objective of ALM is to maximize profitability while ensuring effective risk management. The Asset and Liability Committee (ALCO) meets regularly to review the banks liquidity position and other market-related matters. During the fiscal year 2023-24, the ALCO convened 13 times to assess and monitor the banks liquidity and interest rate risk profile. In addition to regulatory reporting, the ALM function is responsible for determining interest rates on deposits, as well as fixing the base rate, Marginal Cost of Funds Based Lending Rate (MCLR), Repo Rate Linked Rate (RBLR), and External Benchmark Linked Rate (EBLR). Throughout the year 2023-24, your Bank made revisions in deposit interest rates, base rate, RBLR, EBLR, and MCLR multiple times to align with market dynamics. Your Bank adheres to the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) guidelines set by the Reserve Bank of India (RBI). The LCR, which measures the banks ability to meet shortterm liquidity requirements, remained above the threshold limit of 100% for the fiscal year 2023-24, with an average LCR of 223.77%.
Your Bank has upgraded ALM system for generation of SSL (Statement of Structural Liquidity), IRS (Interest Rate Sensitivity) and Liquidity Coverage Ratio (LCR) in line with RBI guidelines. Upgraded system generated SSL, IRS, and LCR reports make Banks liquidity management and interest rate risk management more robust and sustainable.
Similarly, the NSFR, which assesses the long-term stability of the banks funding sources, also remained above the minimum requirement of 100%, with an NSFR of 154.93% as of March 31, 2024. The Asset and Liability Committee, headed by the MD & CEO, is responsible for overseeing the developments in managing liquidity and interest rate risk. The committee ensures that your Bank maintains an optimal balance between profitability and risk management, while complying with regulatory guidelines and maintaining a strong liquidity position.
Implementation of Basel III guidelines
The Central Bank of India has implemented the New Capital Adequacy Framework as per the guidelines issued by the Reserve Bank of India (RBI) in July 2015. Your Bank has adopted Basel III norms and follows the Standardized Approach for Credit Risk, Basic Indicator Approach for Operational Risk, and Standardized Duration method for Market Risk to determine its capital adequacy. To ensure effective risk management, your Bank has established various policies such as the Credit Risk Management Policy, Operational Risk Management Policy, Market Risk Management Policy, Credit Risk Mitigation Policy, Collateral Management Policy, Asset and Liability Management Policy, Model Risk Policy, Model Validation Policy, Credit Review Policy, Intragroup Transactions and Exposures Policy, Integrated Risk Management Policy, Business Continuity Planning (BCP) Policy, and Internal Capital Adequacy Assessment Process (ICAAP). These policies have been duly approved by the board and provide a comprehensive framework for managing different types of risks.
Fraud Risk Management Cell (FRMC)
Fraud Risk Management Cell (FRMC) functions with vision to obviate fraud risks in the face of acceleration of Banks business by strengthening internal controls to protect the brand, reputation and assets of the Bank from loss or damage resulting from suspected or confirmed incidents of fraud. The cell has as robust environment of fraud prevention, detection and mitigation. It collects investigation reports in respect of all suspected cases(except digital/ATM frauds), analyses the frauds for root causes, compiles common characteristics observed and suggest preventive steps. It reports declared fraud cases by Bank to RBI and functions as touch point for fraud matters to RBI. For creating awareness amongst all employees against fraud incidents, the cell shares Modus operandi of recently reported frauds amongst our employees and also suggests necessary measures to avert such frauds in future. Bank has implemented transaction monitoring solution i.e. Enterprise Wide Fraud Risk Management Solution(EFRMS) which is a fraud detection, monitoring and prevention solution that monitors suspicious pattern across transactions on a real time/ near real time basis that facilitates the Bank to respond with corrective action either to approve or block transactions.
SAM and Recovery
The Bank has implemented a well-defined Recovery Policy to manage non-performing assets (NPAs) effectively. This policy covers various aspects, including monitoring NPAs, follow-up measures, compromise settlements, adherence to the SARFAESI Act, appointing enforcement agencies, allocating recovery portfolios, selling assets to ARCs through the Swiss Challenge Method, and addressing cases of wilful default. During the financial year 2023-24, the Bank achieved notable success in reducing Gross NPA and Net NPA.
Financial Performance ( in Crore)
Description |
31-03-2024 | 31-03-2023 |
Cash Recovery |
3,636 | 4,213 |
Upgradation |
588 | 658 |
Gross NPA |
11,340 | 18,386 |
Net NPA |
3,002 | 3,592 |
Gross NPA% |
4.50 | 8.44 |
Net NPA% |
1.23 | 1.77 |
To further aid NPA resolution, the Bank implemented a Special One Time Settlement Scheme (2023-24). This scheme applied to NPAs/OD in SB & CD (DA3/Loss) with customer exposure up to 2.00 lakh as of 31 March 2023, and to all accounts classified as NPA as of the same date, including PWO/TWO accounts with customer exposure up to 10 crores. Additionally, an OTS Scheme under the Net Present Value (NPV) Approach was continued for all NPA accounts, regardless of security. Under these schemes, proposals amounting to 2,048.26 crores were settled for 1,412.74 crores during FY 2023-24.
The Bank also successfully transferred four NPA accounts to NARCL, resulting in a recovery of 66.75 crores (including SRs/OCD) and reducing the NPAs by 283 crores. Moreover, 49 accounts were declared as wilful defaulters. Under the SARFAESI Act, the Bank conducted auctions for 1,729 properties, selling 284 properties and generating 218.17 crores. The Bank signed Inter-Creditor Agreements (ICA) in 15 accounts with a total outstanding amount of 5,828.90 crores as of 31 March 2024. The Bank has set aside a total provision of 4,496.94 crores for these accounts. Additionally, the Bank approved and implemented resolution plans in eight accounts in compliance with the RBI circular dated 07.06.2019. These accounts had an outstanding amount of 1,978.56 crores as of 31 March 2024, with a total provision of 833.04 crores.
To strengthen NPA resolution efforts, the Bank signed ICAs for accounts with banking exposure of 1,500 crores and above, following RBI guidelines. Resolution plans were duly approved and implemented in compliance with the RBI circular dated 07.06.2019. The Bank maintained close daily
monitoring of NPAs and conducted regular reviews of legal actions and SARFAESI-based recovery initiatives. Video conferences were held with field functionaries to assess progress and provide guidance. Additionally, the Banks RO recovery team, in collaboration with branch staff, individually contacted NPA borrowers with an outstanding amount of 10 lakhs and above to facilitate their recovery.
Bancassurance
The Bancassurance Cell of Central Bank of India manages the distribution of life, non-life, and health insurance products, earning commission from these activities. The Bank holds a corporate agency license from the Insurance Regulatory and Development Authority of India (IRDAI), valid until March 31, 2025. Under the new IRDAI “open architecture” regulations of 2015, the Bank has established partnerships with several insurance companies, including Life Insurance Corporation of India, TATA AIA Life Insurance Co. Ltd., The New India Assurance Co. Ltd., and Bajaj Allianz General Insurance Co. Ltd.
The Bancassurance business of Central Bank of India has shown robust growth in FY2024, with significant contributions from both life and non-life insurance segments. With its strategic partnerships and dedicated workforce, the Bank is well-positioned to continue expanding its Bancassurance operations and contribute significantly to its overall revenue stream.
For the year ending March 31,2024, the Bancassurance Cell demonstrated notable achievements:
1. Life Insurance: The Bank mobilized 68,225 policies, earning a commission of 114.87 crore.
2. Non-Life Insurance: A total of 267,953 policies were canvassed, generating a commission of 14.33 crore.
3. Total Earnings: The overall earnings from the Bancassurance business amounted to 129.20 crore.
4. Human Resources: The Bank employs 4,375 specified persons dedicated to sourcing Bancassurance business.
Strategic Tie-ups and Open Architecture
Under the open architecture model, Central Bank of India has broadened its insurance product offerings through partnerships with leading insurance companies in both life and non-life segments. This strategic approach allows the Bank to offer a diverse range of insurance products tailored to meet the varied needs of its customers.
Future Outlook
Moving forward, the Bank aims to enhance its Bancassurance operations by leveraging its wide network and strategic partnerships. The focus will be on increasing the number of policies mobilized and further boosting commission
earnings through improved customer engagement and service delivery. The Bank plans to introduce innovative insurance products and enhance the training and capacity of its specified persons to ensure they can effectively meet customer needs and drive business growth.
Depository Services
Presently Bank is a Depository Participant with an arrangement with Central Depository Services Ltd. (CDSL). All the operations are centralized, and the services are offered through our Nodal Office, Capital Market Cell, Emerging Business Branch, located at Fort, Mumbai. All Branches can facilitate
Demat account opening through OLAO (CDSL Software) and also implemented 3 in 1 E-trading facility (Trading+Demat+Saving) in tie-up with Motilal Oswal Financial Services Ltd. The Bank has 27716 Demat account holder as of 31/03/2024. Capital Market cell is a Nodal office for ASBA Services.
Digital Payments & Transaction Banking
In FY2024, Central Bank of India has significantly advanced its digital payments and transaction banking services. The Banks strategic focus on enhancing digital infrastructure and expanding its range of digital products and services has resulted in substantial growth in digital transactions, customer engagement, and technological innovation. The Banks Digital Payments and Transaction Banking services have demonstrated strong growth and resilience in FY2024, driven by strategic initiatives and a focus on customer satisfaction. The continued investment in technology and expansion of digital channels positions the Bank well for future growth and innovation in the digital banking landscape.
Metric |
FY2023 | FY2024 | Growth (%) |
Daily Average UPI Transactions (lakhs) |
55.47 lakhs |
77.43 lakhs |
39.56% |
Daily Average IMPS Transactions (lakhs) |
3.94 lakhs |
4.76 lakhs |
20.81% |
Daily Average Mobile Banking Transactions (lakhs) |
0.42 lakhs |
0.49 lakhs |
16.67% |
Daily Average Internet Banking Transactions (lakhs) |
0.45 lakhs |
0.46 lakhs |
2.22% |
Number of POS Terminals |
2,154 | 3,034 | 40.85% |
Number of ATMs and Cash Recyclers |
3,752 | 4,084 | 8.86% |
Metric |
FY2023 | FY2024 | Growth (%) |
Internet Banking Users (lakhs) |
98.54 lakhs |
104.84 lakhs |
6.39% |
Mobile Banking Users (lakhs) |
57.67 lakhs |
76.46 lakhs |
32.53% |
UPI Users (lakhs) |
24.50 lakhs |
33.19 lakhs |
35.45% |
Key Achievements
Growth in Digital Transactions:
• UPI Transactions: The Bank processed an average of 77.43 lakh UPI transactions daily, showcasing a robust digital transaction ecosystem.
• IMPS Transactions: Averaged 4.76 lakh transactions per day, highlighting the Banks efficiency in handling real-time payments.
• Mobile and Internet Banking: Daily average
transactions were 0.49 lakh and 0.46 lakh respectively, indicating widespread adoption of these channels.
Expansion of Digital Channels:
• POS Terminals: The number of POS terminals increased by 40.85% year-on-year, with 3,034 terminals installed by March 31,2024, enhancing customer and merchant experiences.
• ATMs and Cash Recyclers: The Bank expanded its ATM network, especially in rural and semi-urban areas, reaching a total of 4,084 units by the end of FY2024.
Customer Base and Engagement:
• Registered Users: The Bank registered significant numbers of users across its digital platforms: 104.84 lakh for Internet Banking, 76.46 lakh for mobile banking, and 33.19 lakh for UPI.
• Debit and Credit Cards: The Banks debit card base grew to 2.92 crore users, and the credit card base reached 3.25 lakh users by March 31,2024.
Service Enhancements
Technological Advancements:
• UPI ATMs: Launched at the Global Fintech Fest 2023, these ATMs allow cardless cash withdrawals using UPI applications, providing enhanced convenience and security.
• Virtual Debit Cards: Introduced for secure e-commerce transactions, reducing the need for physical cards and enhancing security.
• Self-Service Passbook Printing Kiosks (SSPBK): A
total of 1,193 kiosks were deployed, enabling customers to print their passbooks without visiting branches.
Future Digital Initiatives:
• Enhanced UPI Functionalities: Upcoming features include Hello UPI, UPI International, UPI Global, Virtual Wallet, Marketplace, and Credit Score integration, enhancing the capabilities of the CentPay application.
• Omni-Channel Platform: Planned to provide a consistent customer experience across all devices, including desktops, tablets, and mobiles.
• Expansion of ATM Network: An additional 600+ ATMs are planned for deployment in FY2024-25 to further increase accessibility.
IT Infrastructure
In FY2024, Central Bank of India made significant strides in enhancing its IT infrastructure, which is crucial for supporting its operations and customer service. The Banks ISO-certified Data Centre exemplifies its commitment to operational efficiency and reliability. Critical IT projects such as the Core Banking Solution, Trade Finance Solution, Treasury Solution, and Loan Lifecycle Management Solution have been pivotal in achieving the Banks business objectives.
A major achievement this year was the strengthening of the Banks disaster recovery and business continuity capabilities. The establishment of a full-fledged Disaster Recovery Centre and a Near-Site setup ensures business continuity with zero data loss. Regular disaster recovery drills, aligned with regulatory guidelines, maintain the Banks preparedness for unforeseen events.
Technological upgrades were another highlight. The SWIFT system was upgraded to enhance transaction security and efficiency. The revamped Internet Banking services for both retail and corporate customers now feature improved security controls and user-friendly interfaces, providing a seamless banking experience. Additionally, the upgrade of the RTGS/ NEFT systems ensures 24/7 availability, meeting regulatory requirements and customer expectations.
The Bank also focused on regulatory and compliance systems. Implementations such as the Anti-Money Laundering (AML) system and the Application Supported by Blocked Amount (ASBA) were key to maintaining compliance with financial regulations. Other critical deployments included the Integrated Risk Management System (IRMS), Fraud Risk Management System (FRMS), and a centralized e-TDS Management Solution. Integration with DigiLocker for issuing Form 16 and Interest Certificates further streamlined compliance processes.
Supporting its Regional Rural Banks (RRBs), the Bank sponsored Uttar Bihar Gramin Bank and Uttar Banga Kshetriya Gramin Bank. Both RRBs successfully migrated their Core Banking Solution to Finacle 10, and various technological initiatives, including RTGS, IMPS, HRMS, and
Contactless Debit Cards, were implemented to enhance their service offerings.
Digital and self-service enhancements were a major focus. The integration of UPI Lite functionality into BHIM Cent UPI (CentPay) and the introduction of new digital loan facilities against PPF were notable initiatives. The Bank also deployed 1,193 Self-Service Passbook Printing Kiosks, enabling customers to print their passbooks without visiting branches, thereby enhancing customer convenience.
The Bank maintained a strong IT governance framework. The IT Strategy Committee (ITSC), chaired by an Independent Director, met quarterly to provide strategic direction, with special invitees from institutions like IIT and IISc offering expert advice. The IT Risk Management Committee (IT- RMC), chaired by the MD and CEO, met monthly to oversee IT risk management. The IT Steering Committee, comprising top executives from various business verticals, assisted in adopting appropriate IT initiatives. Regular IS and VAPT audits by CERT-In empaneled auditors ensured compliance and security, and achieving PCI-DSS Level 1 Version 4.0 compliance underscored the Banks commitment to data security.
Looking ahead, the Bank has several new initiatives planned. These include the implementation of Interoperable Cardless Cash Withdrawal (ICCW) to enhance customer convenience, the introduction of Green Channel Cash Deposits to reduce paper usage, and the integration of JanSuraksha schemes (PMSBY & PMJJBY) across all CBS branches and digital channels. Enhanced customer service features, such as Re-KYC, electronic One Time Settlement, and nomination amendments via Internet Banking, were also rolled out.
Customers can now update their mobile numbers and KYC details without visiting branches, thanks to the new mobile and SMS update features. These initiatives reflect the Banks commitment to leveraging technology to enhance customer experience and operational efficiency.
The Banks IT infrastructure and ALM systems have been significantly enhanced in FY2024, supporting its operations and providing efficient customer services. The Data Centres ISO certification ensures operational efficiency, and key IT projects such as the Core Banking Solution, Trade Finance Solution, Treasury Solution, and Loan Lifecycle Management Solution serve as vital business enablers. The Banks commitment to business continuity, regulatory compliance, and digital transformation positions it well for continued success.
Information Security
In FY2024, Central Bank of India has significantly strengthened its information security infrastructure to protect
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its information systems and customer data from cyber threats. Ensuring continuous compliance with regulatory guidelines and certification standards like ISO 27001 and ISO 22301, the Bank has implemented a range of cybersecurity measures aligned with industry best practices and regulatory requirements.
Key Initiatives and Measures Cyber Security Operation Centre (CSOC):
The Banks CSOC operates 24/7, continuously monitoring all critical servers and network devices. This ensures that any anomalies or potential threats are detected and addressed promptly, maintaining the integrity and security of the Banks digital infrastructure.
Regulatory Compliance and Certifications:
Compliance with ISO 27001 and ISO 22301 standards has been a cornerstone of the Banks information security strategy. These standards provide a systematic approach to managing sensitive company information and ensuring business continuity. The Bank has achieved PCI-DSS Level 1 Version 4.0 compliance, demonstrating its commitment to the highest standards of security and protection of cardholder data. Central Bank of India is among the leading banks in India to achieve this compliance status.
Advanced Security Solutions:
• Implementation of advanced security solutions, such as Privilege Access Management System (PAMS) and Data Leakage Prevention (DLP) solutions, to safeguard sensitive data and manage user privileges effectively.
• Regular Information Security (IS) and Vulnerability Assessment and Penetration Testing (VAPT) audits conducted by CERT-In empaneled auditors ensure that the Banks security measures are up-to-date and effective against emerging threats.
Cyber Awareness Programs:
Initiatives to enhance cyber awareness among employees and customers have been rolled out regularly. These programs aim to educate all stakeholders on the importance of cybersecurity and best practices to prevent cyber incidents.
Disaster Recovery and Business Continuity:
A full-fledged Disaster Recovery Centre and a Near-Site setup have been established to ensure business continuity with zero data loss. Regular disaster recovery drills are conducted in compliance with regulatory guidelines to maintain a high state of preparedness.
Technological Upgrades:
Upgrading the SWIFT system to the latest version and enhancing the RTGS/NEFT setups to ensure 24x7 availability. These upgrades improve transaction security and
operational efficiency. The introduction of virtual debit cards for secure e-commerce transactions and the implementation of interoperable cardless cash withdrawals (ICCW) through UPI applications further enhance security and convenience for customers.
Looking ahead, Central Bank of India plans to continue its investment in advanced security technologies and practices to stay ahead of evolving cyber threats. The focus will be on enhancing real-time monitoring capabilities, increasing automation in threat detection and response, and expanding the scope of cybersecurity training programs for employees and customers.
IT Governance
In FY2024, the Central Bank of India has further strengthened its IT Governance framework to support its strategic objectives and enhance operational efficiency. The Bank recognizes the critical role of IT in maintaining competitive advantage, ensuring data security, and delivering superior customer service.
IT Strategy Committee
The Board Level IT Strategy Committee (ITSC), chaired by an Independent Director, meets at least once a quarter to provide strategic direction and oversight for the Banks IT initiatives. The committee benefits from the expertise of special invitees from premier institutions like IIT and IISc, who offer insights on IT and cybersecurity matters. During FY2024, these experts provided valuable advice on enhancing the Banks IT infrastructure and security protocols.
IT Risk Management Committee
The IT Risk Management Committee (IT-RMC), chaired by the MD and CEO, includes Executive Directors, the Chief Risk Officer, the Chief Information Security Officer (CISO), and senior IT officials. This committee meets monthly to ensure that IT risks are identified, assessed, and managed effectively. The IT-RMC plays a pivotal role in maintaining the integrity and security of the Banks IT systems, ensuring that all risks are mitigated promptly.
IT Steering Committee
To facilitate informed decision-making on IT investments and initiatives, the IT Steering Committee, comprising top executives from various business verticals, provides operational guidance and support. This committee ensures that IT projects align with the Banks business goals and regulatory requirements, fostering a collaborative approach to IT governance.
IT Organizational Structure
The IT Department, led by a General Manager, is structured to meet the demands of the Banks extensive operations.
Supported by Deputy General Managers, Assistant General Managers, and specialized IT staff, the department is organized into key functional areas including Technology and Development, IT Operations, IT Assurance, and Supply and Resource Management. Each vertical is headed by experienced officials who ensure the seamless execution of IT strategies and projects.
Regulatory Compliance and Audits
The Bank adheres to rigorous regulatory standards, conducting IS Audits and Vulnerability Assessment and Penetration Testing (VAPT) through CERT-In empaneled auditors. The RBI IT Examination team also conducted an audit during FY2024, ensuring that the Banks IT practices meet regulatory expectations. Additionally, the Bank achieved compliance with the Payment Card Industry-Data Security Standard (PCI-DSS) Version 4.0, demonstrating its commitment to maintaining the highest security standards for cardholder data.
Innovative IT Initiatives
Throughout FY2024, the Bank implemented several innovative IT initiatives to enhance customer convenience and operational efficiency. These included:
• Interoperable Cardless Cash Withdrawal (ICCW):
Allowing customers to withdraw cash from ATMs without a debit card.
• Green Channel Cash Deposits: Enabling customers to use the Mobile Banking application for generating reference numbers for cash deposits, reducing the need for paper-based slips.
• Digital Customer Onboarding: Introducing Video KYC for a seamless customer onboarding experience.
• Internet Banking Enhancements: Facilitating Re-KYC, electronic One Time Settlements, and amendments in nominations through Internet Banking.
• Virtual Debit Card: Launching a Virtual Debit Card facility for secure e-commerce transactions.
• Infrastructure Upgrades: Upgrading the Banks network and compute infrastructure to handle increased load and support future developments.
Digital Initiatives
Central Bank of India has prioritized digital transformation, implementing initiatives that enhance customer experience, improve operational efficiency, and ensure technological innovation. The digital initiatives in FY2024 have significantly boosted service delivery, operational efficiency, and customer engagement. With a strong focus on innovation and technology adoption, the Bank is well-positioned to continue its digital transformation journey, delivering superior value to customers and stakeholders.
Key Digital Initiatives
Omni-Channel Banking: The Bank introduced an OmniChannel platform that provides a seamless and consistent customer experience across multiple devices, including desktops, tablets, and mobile phones. This platform integrates various banking services, allowing customers to perform transactions, access financial products, and manage their accounts conveniently.
Digital Lending Platform: A new digital lending platform was launched, enabling the end-to-end processing of loan applications through digital channels. This platform leverages advanced data analytics to assess creditworthiness and streamline the loan approval process, reducing turnaround time and enhancing customer satisfaction.
Integrated Customer Care: An integrated customer care system was implemented, which uses artificial intelligence (AI) and machine learning (ML) to provide personalized support. The system can handle a wide range of customer inquiries, from basic account information to complex transaction issues, improving the efffciency of customer service operations.
Collections Management: The Bank adopted an advanced collections management system that uses predictive analytics to identify potential defaults and optimize recovery strategies. This system helps in maintaining asset quality and ensuring timely recovery of dues.
Video-KYC for Customer Onboarding: To facilitate remote account opening, the Bank introduced a Video-KYC (Know Your Customer) process. This allows customers to complete the KYC process through a video call, eliminating the need for physical branch visits and enhancing convenience.
Wealth Management Services: The Bank expanded its digital wealth management services, offering a range of investment products and advisory services through its online platform. Customers can now access portfolio management tools, financial planning services, and market insights digitally.
Technological Advancements Microservices-Based Architecture: The digital
applications of the Bank have been restructured into a microservices-based, containerized architecture. This allows for greater scalability, flexibility, and ease of maintenance, ensuring that the Bank can rapidly adapt to changing technological and market conditions.
Automated Integration Tools: Automated tools for application integration and deployment have been introduced, facilitating seamless integration of new features and updates. This enhances the agility of the Banks IT infrastructure, enabling quicker responses to customer needs.
APIfication for Open Banking: The Bank has embraced open banking by developing a comprehensive API (Application Programming Interface) framework. This enables third-party developers to integrate their applications with the Banks systems, fostering innovation and expanding the range of available digital services.
Payment Hub: A new payment hub has been established to centralize and streamline all payment processing activities. This hub supports multiple payment methods, including UPI, IMPS, NEFT, and RTGS, ensuring efficient and secure transactions.
Customer Engagement and Adoption Digital Transaction Growth: The Bank reported a significant increase in digital transactions, with UPI transactions averaging 77.43 lakh daily and IMPS transactions averaging 4.76 lakh daily. This growth reflects the successful adoption of digital channels by customers.
Mobile and Internet Banking: Daily average transactions for mobile banking reached 0.49 lakh, while internet banking transactions averaged 0.46 lakh daily. The number of registered users for these services continued to grow, with 104.84 lakh internet banking users and 76.46 lakh mobile banking users by the end of FY2024.
Innovative Customer Solutions: The introduction of Interoperable Cardless Cash Withdrawal (ICCW) and virtual debit cards for secure online transactions have been well received, providing enhanced security and convenience to customers.
Future Digital Initiatives
MarTech and Modern Data Platform: The Bank plans to implement advanced marketing technology (MarTech) solutions and a modern data platform to enhance customer targeting and engagement. These initiatives will leverage big data analytics and AI to deliver personalized experiences.
Enhanced UPI Functionalities: Upcoming features for the CentPay application include UPI International, UPI Global, Virtual Wallet, Marketplace, and Credit Score integration. These enhancements aim to expand the capabilities of the UPI platform and offer a richer user experience.
Scalable IT Infrastructure: The Bank is focused on expanding its private cloud infrastructure to support future digital initiatives. This will provide a scalable and secure environment for hosting applications and managing data.
Digital Banking Solutions for MSMEs and Corporates:
Tailored digital solutions for MSMEs (Micro, Small, and Medium Enterprises) and corporate clients are in development. These solutions will streamline financial operations, improve access to credit, and support business growth.
Customer Service Initiatives
In FY2024, Central Bank of India has focused on enhancing customer service through a series of strategic initiatives. These efforts aim to simplify processes, improve accessibility, and increase overall customer satisfaction. By integrating advanced technology and expanding service options, the Bank remains committed to delivering exceptional service and convenience to its diverse customer base.
Form 16 and Interest Certificate Generation: Customers can now generate Form 16 and interest certificates directly through the Banks digital platforms, simplifying tax-related processes and saving valuable time.
Incorporation of Date & Time in Fund Transfer Receipt:
Fund transfer receipts now include the precise date and time of transactions, enhancing transparency and accuracy for customers.
De-Register and Loyalty Rewards Option: New features allow customers to de-register from services and manage their loyalty rewards directly through the Banks digital platforms, offering greater control over their banking preferences.
Addition of Assamese, Bengali, and Punjabi Languages:
To cater to the linguistic diversity of the customer base, the Bank has added Assamese, Bengali, and Punjabi languages to its digital and customer service platforms, promoting inclusivity and accessibility.
Cent 555/999 Deposits Included in Account Opening Dropdown: The account opening process now includes options for Cent 555 and Cent 999 deposits, streamlining the selection and integration of these deposit schemes for customers.
Pop-up for Debit Card Offers in Cent Mobile App:
Customers can receive pop-up notifications about debit card offers directly within the Cent Mobile App, keeping them informed about the latest promotions and benefits.
Tokenization of Cards: To enhance security, the Bank has implemented tokenization of cards. This technology replaces sensitive card information with a unique identifier (token), reducing the risk of fraud and providing a more secure transaction experience.
State-of-the-Art Integrated Customer Care (ICC): The
Bank has established a State-of-the-Art Integrated Customer Care (ICC) with a scalable business model focusing on timely responsiveness, outreach, and quality assurance. Services offered through ICC include Call/Voice, IVR, Chat and Chatbot, WhatsApp live chat, social media, email/web form, video banking, and co-browsing.
Audit and Inspection
The Central Bank of India places immense importance on risk management and has established robust internal audit mechanisms to assess and mitigate risks across its branches and offices. These mechanisms are designed to ensure operational efficiency, regulatory compliance, and financial accuracy.
Concurrent Audits
Concurrent audits play a crucial role in monitoring and ensuring the accuracy and compliance of branch operations. As of March 31,2024, a total of 1155 branches/offices were covered under concurrent audits by chartered accountants or bank officials. This includes general branches, specialized branches, centralized processing centers, currency chests, authorized dealer branches, nodal branches for government business, and high-risk rated branches. Concurrent audits cover approximately 58.63% of the Banks total business and 70.47% of aggregate advances. The Bank has engaged a diverse range of chartered accountant firms categorized by RBI as Category I, II, III, and IV to conduct these audits.
In addition to regular concurrent audits, the Bank appointed concurrent auditors at the Regional Office level to conduct transaction checks of internal/office accounts of branches not covered under regular concurrent audits for the fiscal year 2023-24. A total of 456 concurrent auditors were appointed, including chartered accountants and audit firms categorized by RBI. To ensure the accuracy of income bookings, the Bank conducts an annual revenue checking exercise involving chartered accountants, internal auditors, and other officials from March 1st to March 10th every year.
Compliance Audits
Compliance audits are conducted to ensure adherence to regulatory and internal compliance requirements. During the fiscal year 2023-24, 710 branches underwent compliance audits, contributing to the Banks strict compliance culture. These audits help in identifying non-compliance issues and ensuring that corrective measures are implemented promptly. Additionally, the Bank conducts periodic inspections and audits to assess compliance at branches, including KYC compliance audits.
Legal Audits and Re-Verification of Title Deeds
The Central Bank of India complies with RBI directives by conducting periodic legal audits and re-verification of title deeds in eligible accounts. These audits ensure the integrity and legality of the Banks operations. Legal audits help in verifying the legal documentation and ensuring that the Banks interests are adequately protected. Re-verification of title deeds is carried out to confirm the authenticity and validity of the property documents held as security for loans.
Rajbhasha (Official Language)
During the FY2024, the Rajbhasha Department of the Central Bank of India made significant strides in promoting the use of Hindi throughout the organization, reflecting our commitment to the national language. A notable recognition for our efforts was the prestigious “Rajbhasha Kirti Puraskar” (Third), awarded by the Government of India on September 14, 2023, for exemplary Rajbhasha implementation during 2022-23.
Our dedication to promoting Hindi was further recognized by the Regional Implementation Offices, Ministry of Home Affairs, Government of India. Under our Banks convenorship, several offices received awards for their outstanding work, including TOLIC (Bank) Panaji and TOLIC (Bank) Madurai, both securing First Prizes, and TOLIC (Bank) Bhopal receiving the Second Prize.
Beyond these accolades, our house magazine, “Central Manthan,” was honoured as the Best House Magazine by the Mumbai-based organization ‘Ashirwad. The Mumbai Metro Zonal Office received the ‘Dushyant Samman for its excellent work in promoting Hindi. Additionally, our General Manager (Rajbhasha), Ms. Poppy Sharma, was awarded the “Ashirwad Rajbhasha Gaurav Award” for her invaluable contributions to Rajbhasha implementation.
Numerous Narakas (TOLIC) awards were conferred upon our offices for their exceptional use of Rajbhasha. During the financial year 2023-24, various offices of the Central Bank of India received numerous accolades for their outstanding use of Rajbhasha. In the First category, top honours were awarded to the Zonal Office in Patna, along with the Regional Offices in Ranchi, Muzaffarpur, Ayodhya, Kota, Raipur, and Meerut. Additionally, the Palval branch under the Regional Office Delhi “Central” Region, the Madgaon Branch, and the Anand Branch in the Ahmedabad Zone were also recognized with First prizes. The Second category saw commendations for the Zonal Office in Guwahati, as well as the Regional Offices in Bhubaneswar, Trichy, Jamnagar, Amritsar, and Dhanbad. In the Third category, awards were given to the Zonal Office in Hyderabad, along with the Nayabas Branch, and the Regional Offices in Varanasi, Nashik, Hoshangabad, Indore, Surat, Baroda, and Vijayawada. The branches in Nellore (Guntur Region), Kendujhar (Sambalpur Region), Belagavi (Hubli Region), Vasco (Panaji Region), and Kurnool (Guntur Region) also received Third prizes. Special recognition was given to the Dewas Branch in the Indore Region, while incentive awards were granted to the Regional Office in Visakhapatnam, the Badvani Branch in the Indore Region, and the Salem Branch in the Coimbatore Region.
To further promote Hindi, the Central Bank of India hosted the “Akhil Bhartiya Rajbhasha Sammelan” at CBOTC Bhopal on March 4th and 5th, 2024. Esteemed guests such as Shri Khem
Singh Dehariya, Vice Chancellor of Atal Bihari Vajpayee Hindi Vishwavidyalaya, and Shri Satyendra Singh, IAS, from the MP Government attended. A special lecture on “Kanthastha-2” was delivered by Shri Deepak Kumar from the Department of Official Language, Ministry of Home Affairs. Additionally, a significant literary contribution was made with the release of the essay compilation “Kartavyen Kartabhi Rakshayate” (part 2) during the Sammelan. Several Rajbhasha seminars were organized to further the cause, including sessions at the Regional Office Bhubaneswar, Zonal Office Guwahati, and Zonal Office Ahmedabad.
The Rajbhasha Department also organized an All India Rajbhasha Exhibition at CBOTC Bhopal, showcasing attractive pavilions set up by all zones. Pune and Guwahati Zones were awarded for the Best Exhibitions. Throughout the year, a total of 312 exhibitions were held across various offices, covering a wide range of topics from Hindi literature to morning messages in Hindi and English.
Our Bank published 12 e-books on various banking topics, including Artificial Intelligence in Banking, Cyber Crime, Digital Hindi, and more. These publications aim to enhance knowledge and promote the use of Hindi in the banking sector. To support linguistic diversity, ‘Cent Saral e-learning books for 10 major Indian languages were made available on our Banks website. Languages covered include Bangla, Gujarati, Kannada, Konkani, Malayalam, Marathi, Punjabi, Tamil, Telugu, and Odiya.
At the national level, various Hindi competitions were organized to encourage the implementation of Rajbhasha, including the 7th All India Inter Bank Hindi Essay Competition, the 44th All India Hindi Essay Competition, and the All India Hindi Geet Gayan Competition. Our commitment to Hindi was further exemplified by the recognition of five zones as the Best Zones for excellent Rajbhasha implementation and the awarding of 12 Rajbhasha Officers for their exemplary contributions.
Publications continued with the bilingual house magazine ‘Centralite and the Hindi house magazine ‘Central Manthan being published quarterly. Zonal and Regional Offices also published e-magazines at quarterly intervals. Various events were organized, such as World Hindi Day and International Mother Tongue Day, where offices enthusiastically participated in competitions under the aegis of their respective NARAKAS. On February 21,2024, the Regional Office in Panaji hosted a dialogue program “Aao Kare Apni Matrabhasha Me Baat” for staff members, celebrating International Mother Tongue Day.
Additionally, a total of 225 Hindi posters with messages, sayings, quotations, and guidelines were released by our offices across the country. As the convener of 11 NARAKAS (Town Official Language Implementation Committees),
including Akola, Bhopal (Bank), Deoria, Golaghat, Gwalior (Bank), Lakhimpur (North), Madurai, Panaji, Raipur (Bank), Thane, and Udalgudi, the Central Bank of India continues to lead efforts in promoting Hindi.
Marketing
In FY2024, our marketing strategies focused on expanding our reach, deepening customer engagement, and reinforcing our brand identity. We employed a multi-faceted approach combining traditional marketing techniques with innovative digital initiatives to achieve our objectives.
Our key marketing strategies and accomplishments for the year included brand reinforcement through a comprehensive rebranding campaign that featured a refreshed logo, updated visual identity, and new brand messaging emphasizing our commitment to innovation and sustainability. This initiative resulted in a 20% increase in brand recognition and positive sentiment across our target markets.
Customer-centric campaigns were another major focus. We rolled out several campaigns tailored to the specific needs and preferences of our diverse clientele, leveraging customer data and insights to create personalized experiences. Our “Customer First” campaign, which included targeted promotions and loyalty rewards, led to a 15% increase in customer retention and a 10% uplift in cross-selling opportunities.
We also formed strategic partnerships with industry leaders and influencers, collaborating on content creation, joint events, and market reach expansion. These alliances not only expanded our market presence but also enhanced our credibility and trustworthiness among new customer segments.
Continuous market research and data analytics were integral to our marketing efforts. We invested in advanced analytics tools to track customer behavior, measure campaign effectiveness, and refine our strategies in real-time. Insights gained from these analyses enabled us to optimize our marketing spend, resulting in a 12% improvement in ROI compared to the previous fiscal year.
Emphasizing our commitment to sustainability, we integrated eco-friendly practices into our marketing initiatives. We launched the “Go Green” campaign to promote sustainable products and practices, resonating strongly with environmentally conscious consumers. Our community engagement programs, including sponsorships and CSR activities, reinforced our brands role as a responsible corporate citizen, enhancing our reputation and customer loyalty.
Digital Marketing
Digital marketing remained a cornerstone of our overall marketing strategy in FY2024, driving significant growth and engagement across our digital channels. Our digital marketing efforts were characterized by innovative approaches, extensive use of data analytics, and a focus on enhancing the customer experience.
We enhanced our online presence by revamping our website to provide a more user-friendly and interactive experience. The new design features streamlined navigation, faster load times, and personalized content tailored to individual user preferences. As a result, we saw a 25% increase in website traffic and a 30% rise in the average session duration, indicating higher user engagement and satisfaction.
Our social media strategy centered on creating compelling, shareable content that fostered community engagement and brand advocacy. Utilizing platforms like Facebook, Instagram, Twitter, and LinkedIn, we reached diverse audiences and interacted with them in real-time. Engaging content, including videos, infographics, and live events, led to a 40% increase in social media followers and a 35% boost in engagement rates across all platforms.
We implemented robust SEO practices to enhance our search engine visibility and drive organic traffic. This included optimizing our website content, conducting keyword research, and building high-quality backlinks. Our SEO efforts resulted in a 20% increase in organic search traffic and improved our websites ranking for key industry-related search terms.
Our PPC campaigns were strategically designed to target high-intent audiences through platforms like Google Ads and Bing Ads. We focused on keyword targeting, ad copy optimization, and landing page improvements to maximize conversions. These campaigns delivered a 15% increase in click-through rates (CTR) and a 10% growth in conversion rates, demonstrating the effectiveness of our paid search efforts.
We leveraged email marketing to nurture leads, retain customers, and promote our products and services. Personalized email campaigns, informed by customer data and behavior, ensured relevant and timely communications. Our email marketing initiatives achieved a 25% open rate and a 20% click-through rate, significantly higher than industry benchmarks.
Utilizing advanced analytics and marketing automation tools, we tracked user behavior and campaign performance with precision. This data-driven approach allowed us to make informed decisions, optimize our marketing strategies, and enhance customer experiences. Through continuous monitoring and optimization, we improved our overall
digital marketing ROI by 18%, reflecting our commitment to efficiency and effectiveness.
By integrating these strategies, we have successfully navigated the dynamic digital landscape, driving substantial growth and strengthening our position as a market leader in the financial sector. Looking ahead, we aim to further innovate and expand our digital marketing capabilities to continue delivering exceptional value to our customers and stakeholders.
Digital Marketing Impact
Digital marketing has revolutionized the way businesses operate, transforming traditional marketing strategies and enabling companies to engage with their audiences in more dynamic and interactive ways. In todays digital age, the impact of digital marketing on business operations is profound and multifaceted, encompassing various aspects such as customer engagement, brand awareness, data analytics, and overall business growth.
One of the most significant impacts of digital marketing is enhanced customer engagement. Through platforms like social media, email, and websites, businesses can interact with their customers in real-time, fostering a sense of community and loyalty. Social media platforms, such as Facebook, Instagram, Twitter, and LinkedIn, allow companies to share content, respond to customer inquiries, and engage with their audience through likes, comments, and shares. This level of interaction not only helps in building strong customer relationships but also provides valuable feedback that can be used to improve products and services.
Brand awareness is another area where digital marketing has made a considerable impact. With the internets vast reach, businesses can now promote their brand to a global audience. Digital marketing techniques such as search engine optimization (SEO), pay-per-click (PPC) advertising, and content marketing ensure that a companys brand is visible to potential customers when they search for relevant keywords or browse related content online. This increased visibility helps in establishing brand recognition and trust among consumers.
The use of data analytics in digital marketing has transformed how businesses make decisions and strategize. Advanced analytics tools allow companies to track user behaviour, measure the effectiveness of marketing campaigns, and gain insights into customer preferences. This data-driven approach enables businesses to tailor their marketing strategies to target specific demographics, optimize their marketing spend, and achieve better ROI. For example, by analysing website traffic data, companies can identify which pages are most visited and adjust their content to better meet the needs of their audience.
Digital marketing also facilitates personalized marketing, which has become crucial in todays competitive market. By leveraging customer data, businesses can create personalized marketing campaigns that cater to individual preferences and behaviour. Personalized emails, product recommendations, and targeted ads enhance the customer experience, leading to higher engagement and conversion rates. This level of personalization is difficult to achieve through traditional marketing methods.
Moreover, digital marketing offers cost-effective solutions compared to traditional marketing channels. Online advertising, social media campaigns, and email marketing are generally more affordable than print ads, TV commercials, or billboards. This cost efficiency allows even small businesses with limited budgets to compete with larger companies and reach a wide audience.
The ability to quickly adapt and respond to market changes is another advantage of digital marketing. Unlike traditional marketing campaigns that may take weeks or months to plan and execute, digital marketing campaigns can be launched and adjusted in real-time. This agility allows businesses to stay ahead of trends, respond to customer feedback promptly, and capitalize on emerging opportunities.
Furthermore, digital marketing has made it easier for businesses to measure and track the success of their campaigns. Metrics such as click-through rates, conversion rates, and customer engagement provide tangible data that businesses can use to assess their performance and make informed decisions. This transparency and accountability are vital for continuous improvement and achieving marketing goals.
Media (Social & Traditional)
Social media has become an essential component of our banks strategy, fundamentally transforming how we engage with customers, build our brand, and enhance our services. Leveraging platforms such as Facebook, Twitter, LinkedIn, Instagram, and YouTube, we have successfully created a dynamic and interactive presence that aligns with our mission of providing exceptional banking experiences.
Followers/Likes on Social Media Platforms as of 31/03/2024
One of the most impactful aspects of social media for the Bank is the ability to foster real-time engagement with our customers. Through these platforms, we can respond
instantly to inquiries, address concerns, and provide support, thereby building stronger relationships and trust. For example, our customer service team actively monitors social media channels to assist customers with account queries, resolve issues, and offer guidance on various banking products and services. This immediacy and accessibility help us to enhance customer satisfaction and loyalty.
Brand storytelling is another key benefit of our social media strategy. We use these platforms to share our story, values, and vision in compelling ways. On Instagram and Facebook, we showcase our community involvement, highlight customer success stories, and celebrate our milestones. LinkedIn serves as a professional space where we share industry insights, company achievements, and thought leadership content. These narratives not only humanize our brand but also resonate deeply with our audience, fostering a sense of connection and loyalty.
Social media also significantly amplifies our brand awareness. The viral nature of content on these platforms means that a single post can reach thousands, if not millions, of people in a short period. We leverage this potential by creating engaging and shareable content, such as informative videos, infographics, and interactive polls. Our campaigns often incorporate hashtags and challenges that encourage user participation and sharing, thereby increasing our visibility and attracting new customers.
Moreover, social media provides valuable data and insights that inform our marketing strategies. Analytics tools on platforms like Facebook and Twitter allow us to track user demographics, engagement rates, and content performance. By analyzing this data, we can identify trends, measure the effectiveness of our campaigns, and refine our approach to better meet our audiences needs. This data-driven strategy ensures that our marketing efforts are targeted and efficient, maximizing our return on investment.
Customer feedback and market research are other critical aspects of our social media presence. We actively seek feedback through polls, surveys, and direct interactions to understand our customers needs, preferences, and pain points. This feedback is invaluable for improving our products and services and ensuring they align with customer expectations. Listening to our customers on social media helps us stay agile and responsive in a rapidly changing market.
Social media also plays a crucial role in influencing customer decisions and driving sales. Platforms like Instagram and Facebook have integrated shopping features, allowing us to promote our products and services directly. We collaborate with influencers and financial bloggers who share our values, thereby reaching a broader audience and enhancing our
Facebook: |
220,406 Followers |
Twitter: |
182,350 Followers |
LinkedIn: |
98,652 Followers |
Instagram: |
85,517 Followers |
YouTube: |
50,000 Followers |
credibility. These partnerships have proven effective in driving engagement and conversions, as influencers have a strong impact on their followers purchasing decisions.
In addition to these benefits, social media allows us to stay informed about industry trends and monitor our competitors. By keeping an eye on the latest developments and analysing competitor strategies, we can adapt quickly and maintain a competitive edge. This intelligence is crucial for our strategic planning and helps us identify new opportunities for growth.
Furthermore, social media is an invaluable tool for crisis management. In times of public relations challenges or operational issues, we use our social media channels to communicate transparently and promptly with our stakeholders. Providing timely updates and addressing concerns directly helps us manage situations effectively and maintain trust with our customers.
In conclusion, social media is a powerful asset for our bank, enhancing customer engagement, brand storytelling, and data-driven decision-making. It amplifies our brand awareness, influences purchasing decisions, and provides critical market insights. As we continue to innovate and expand our social media presence, we remain committed to delivering exceptional value to our customers and staying at the forefront of the Banking industry in the digital age.
Advertising and Media
Advertising and media campaigns play a crucial role in our banks strategy to reach and engage with our target audience. In FY2024, we executed a series of advertising initiatives across multiple platforms, including television, radio, print, and digital media.
Our advertising campaigns focused on promoting our core banking products, innovative digital services, and our commitment to sustainability. We employed a mix of traditional and digital media to maximize our reach and impact. Television and radio ads highlighted our latest product offerings and customer success stories, while print ads in leading newspapers and magazines reinforced our brand presence and communicated our key messages.
Digital media has been a significant area of growth for us, with targeted social media campaigns, search engine marketing, and content marketing strategies driving significant engagement. We utilized data analytics to refine our advertising strategies, ensuring that our messages were relevant and resonated with our audience. This integrated approach to advertising and media has enhanced our brand recognition and attracted new customers.
Press Releases and Media Engagement
Our banks strategy for press releases and media engagement
is designed to enhance transparency, communicate key achievements, and strengthen our brand presence. In FY2024, we focused on leveraging various media channels to reach a broad audience, ensuring that our stakeholders are well-informed about our initiatives and accomplishments.
Throughout the year, we issued regular press releases to announce significant developments such as new product launches, strategic partnerships, and financial results. These press releases were distributed through major news agencies and featured prominently in leading financial publications. By maintaining a steady flow of information, we ensured that our stakeholders remained up-to-date with our progress and milestones.
Our proactive media outreach resulted in extensive coverage across print, online, and broadcast media. We worked closely with journalists and editors to provide them with detailed information and exclusive insights, ensuring accurate and favourable reporting on our activities. This collaboration with the media helped amplify our messages and reach a wider audience.
During challenging times, such as economic downturns or operational issues, we utilized our media channels to communicate promptly and transparently with the public. Our crisis communication efforts focused on providing timely updates and addressing concerns directly, helping to maintain trust and mitigate any negative impact. By being forthright and responsive, we demonstrated our commitment to transparency and accountability.
Increasing the visibility of our senior executives was another key aspect of our media engagement strategy. We arranged interviews, opinion pieces, and speaking engagements at industry events, allowing our leaders to share their vision, insights, and perspectives on the Banking industry. These opportunities positioned our executives as thought leaders and enhanced the credibility of our bank.
Embracing digital platforms, we expanded our media engagement to include social media channels, webinars, and podcasts. These platforms enabled us to reach a wider and more diverse audience, fostering greater interaction and engagement with our stakeholders. The use of digital media allowed us to create more dynamic and interactive content, making our communications more engaging and effective.
We also formed strategic partnerships with key media outlets to co-create content and host joint events. These collaborations enhanced our reach and credibility, ensuring that our messages resonated with target audiences. By working closely with respected media partners, we were able to leverage their expertise and platforms to amplify our communications.
Overall, our press releases and media engagement strategies have played a crucial role in maintaining an open line of communication with the public. Our consistent media presence has significantly increased brand recognition and awareness among both existing and potential customers. Transparent and proactive communication has bolstered public perception of our bank, highlighting our commitment to innovation, sustainability, and customer satisfaction. By keeping stakeholders informed and engaged, we have strengthened their confidence in our banks stability and future prospects.
Sponsorships
Our bank has actively engaged in various sponsorships to foster community relations and promote our brand values. These sponsorships are carefully selected to align with our commitment to social responsibility, financial literacy, and community development.
Throughout FY2024, we have supported numerous educational programs, sports events, and cultural activities. By sponsoring financial literacy workshops and seminars, we have empowered individuals and businesses with essential financial knowledge. Our involvement in local sports events has promoted health and wellness, while cultural sponsorships have enriched the communities we serve by preserving and promoting local heritage and traditions.
These sponsorships not only enhance our visibility but also demonstrate our dedication to the holistic development of the communities we operate in. By partnering with local organizations and institutions, we ensure that our sponsorship initiatives have a meaningful and lasting impact.
Advertising and Media
Advertising and media campaigns play a crucial role in our banks strategy to reach and engage with our target audience. In FY2024, we executed a series of advertising initiatives across multiple platforms, including television, radio, print, and digital media.
Our advertising campaigns focused on promoting our core banking products, innovative digital services, and
our commitment to sustainability. We employed a mix of traditional and digital media to maximize our reach and impact. Television and radio ads highlighted our latest product offerings and customer success stories, while print ads in leading newspapers and magazines reinforced our brand presence and communicated our key messages.
Digital media has been a significant area of growth for us, with targeted social media campaigns, search engine marketing, and content marketing strategies driving significant engagement. We utilized data analytics to refine our advertising strategies, ensuring that our messages were relevant and resonated with our audience. This integrated approach to advertising and media has enhanced our brand recognition and attracted new customers.
Community Engagement
Community engagement is at the heart of our banks mission to contribute positively to the society we serve. In FY2024, we launched and participated in numerous community engagement initiatives aimed at improving the quality of life for our customers and the broader community.
Our key community engagement activities included financial literacy programs, environmental sustainability projects, and social welfare initiatives. We conducted workshops and seminars on financial management and literacy, helping individuals and small businesses make informed financial decisions. Our sustainability projects, such as tree plantation drives and clean-up campaigns, underscored our commitment to environmental stewardship.
We also invested in social welfare programs, supporting healthcare initiatives, education for underprivileged children, and emergency relief efforts. By partnering with local nonprofits and community organizations, we were able to address critical needs and provide tangible benefits to the community.
These community engagement efforts have strengthened our relationships with stakeholders and reinforced our reputation as a responsible and caring corporate citizen. We remain committed to expanding our community engagement activities, ensuring that we contribute to the well-being and development of the communities we serve.
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