Central Bank of India Directors Report

Your Directors have pleasure in presenting the Annual Report of the Bank along with the Audited Statement of Accounts, the Profit and Loss accounts and the cash flow statement for the year ended March 31, 2024.

1. Performance Highlights:

• Total Business of the Bank stood at Rs 636756 crore as at March 31,2024 compared to Rs 577075 crore as at March

31,2023.

• Total Deposits stood at 385011 crore as against Rs 359296 crore in March 31,2023.

• Total Advances of the Bank stood at Rs 251745 crore as against Rs217779 crore in March 31,2023.

• Total Income for the financial year ended March 31,2024 was Rs 35434 crore as compared to 29626 crore for the financial year ended March 31,2023.

• Non-Interest Income of the Bank stood at Rs 4712 crore for the financial year ended March 31,2024 compared to 4084 crore for the financial year ended March 31,2023.

• Operating Profit of the Bank increased to Rs 7363 crore for the financial year ended March 31,2024 as compared to 6884 crore for the corresponding previous financial year ended March 31,2023 showing increase of 6.96%.

• The Bank has earned Net Profit of Rs 2549 crore for the financial year ended March 31,2024 as compared to Net profit of 1582 crore during previous financial year ended March 31,2023.

• Business per employee increased to 19.94 crore during the financial year ended March 31,2024 from 18.45 crore in the previous financial year ended March 31,2023.

• Capital Adequacy Ratio (as per Basel-III) stood at 15.08% with Tier I at 12.46% and Tier II at 2.62% for the financial year ended March 31,2024. (Bank has computed Capital Ratio after adjustment for reckoning NPV of non-interest bearing recapitalization bond issued by Government of India).

• Net worth stood at Rs 28053.33 crore as on March 31,2024.

Cash Recovery (including sale of NPA & written off accounts) is Rs 3636 crore in the financial year ended March 31,2024 as compared to 4213 crore in the previous financial year ended March 31,2023.

• Gross NPA to Gross Advances improved to 4.50% as on March 31,2024 from 8.44% as on March 31,2023.

• Net NPA to Net Advances reduced to 1.23% as on March 31.2024 as against 1.77% as on March 31,2023.

Provision Coverage Ratio improved to 93.58% as on March 31.2024 from 92.48% as on March 31,2023.

• Net Interest Margin (NIM) declined to 3.40% in the financial year ended March 31,2024 as compared to 3.47%* in the Financial Year ended March 31,2023.

• Return on Assets (ROA) is 0.63% for the Financial Year ended March 31,2024.

• The credit deployment under priority sector stood at Rs18135.91 crore during FY 2023-24. However, to take an advantage of excessive lending over ANBC in Priority Sector credit, Bank undertook sale/purchase transactions in PSLCs. During the year Bank sold PLSCs worth 1500 crore under PS Advances.

• Agriculture Advance of the Bank stood at 46063 crore for the financial year ended March 31,2024 as against 42110 crore for the previous financial year ended March 31,2023.

• MSME Advance for the financial year ended March 31,2024 stood at Rs 49870.00 Crore without PSLC and investment in SIDBI is 218.50 crore and Mudra limited is Rs 15.54 crore.

• Retail Loans increased to Rs 71193 crore in financial year ended March 31,2024 from 62726 crore in financial year ended March 31,2023.

• Housing Loan portfolio of the Bank stood at 44057 crore for the financial year ended March 31, 2024, registering y-o-y growth of 13.57%. Housing Loan Portfolio constitutes 61.88% of the total Retail Portfolio as on March 31,2024.

• There are 46 RSETIs in 9 States of the country viz. Madhya Pradesh (18), Bihar(9), Maharashtra(6), Uttar Pradesh (5), West Bengal(3), Chhattisgarh (2), Rajasthan (1), Odissa (1) and Assam (1). During the year 2023-24, the RSETIs conducted 1052 training programmes and imparted training to 31053 candidates. Out of this, 23883 (i.e.77%) trainees were settled through bank credit, wage settlement and selffinance. Credit linkage of settled candidates achieved is 14174 i.e. 59.34%.

• Bank has 2 RRBs as on 31stMarch 2024 in 2 states covering 23 districts with a network of 1170 branches.. Under Financial Inclusion, Bank deployed total 11682 BC Agents. Bank has opened 1242 Urban Financial Inclusion centres.

• Total earning from Bancassurance business is Rs 129 crore for the financial year ended March 31,2024..

• Bank is having pan India presence with network of 4500 branches with 65.27 % (2937 branches) in rural & semiurban areas, 4084 ATMs and 11682 BC Points with total 20266 Touch Points as on 31^st March 2024.

• Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification

2. Income & Expenditure:

Details of income and expenditure for the financial year 2023-24 are given hereunder:

( in Crores)

	31.03.2024	31.03.2023	Variation	%
1 Interest Income	30722	25542	5180	20.28%
- Advances	19707	14922	4785	32.07%
- Investments	9510	8715	795	9.12%
- Others	1505	1905	(400)	-21.00%
2 Non Interest Income*	4712	4084	628	15.38%
3 Total Income (1+2)*	35434	29626	5808	19.60%
4 Interest Expended	17826	13855	3971	28.66%
- Deposits	16908	13388	3520	26.29%
- Others	918	467	451	96.57%
5 Operating Expenses	10245	8887	1358	15.28%
- Establishment	6312	5604	708	12.63%
- Others	3933	3283	650	19.80%
6 Total Expenses (4+5)	28071	22742	5329	23.43%
7 Spread (1-4)	12896	11687	1209	10.34%
8 Operating Profit (3-6)*	7363	6884	479	6.96%
9 Provisions*	4814	5302	(488)	-9.20%
10 Provisions For Tax	1504	1063	441	41.49%
11 NET PROFIT/(LOSS) (8-9-11)	2549	1582	967	61.13%

Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification

3. Provisions:

Details of Total Provisions of 4814 crore charged to the Profit and Loss Account during the financial year 2023-24 visa-vis previous financial year are detailed as under:

( in Crores)

	31.03.2024	31.03.2023	Variation
	(FY)	(FY)
Provisions for Standard Assets	52	681	-92.36%
Provisions for NPAs*	3391	3532	-3.99%
Provisions for Restructured Accounts	(34)	(222)	84.68%
Provision on Investments*	(265)	215	-223.26%
Provisions for Taxes	1504	1063	41.49%
Others*	166	33	403.03%
Total	4814	5302	-9.20%

Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification

4. Profitability Ratios:

(In percentage)

	31.03.2024	31.03.2023
	(FY)	(FY)
Cost Of Deposit	4.61	3.92
Cost Of Funds	4.70	3.97
Yield On Advances	8.72	7.61
Yield on Investments	6.57	6.26
Yield On Investment (Including Trading profit)	6.91	6.41
Net Interest margin*	3.40	3.47
Cost To Income Ratio	58.18	56.35

Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification

5. Business Ratios:

(In percentage)

	31.03.2024	31.03.2023
	(FY)	(FY)
Interest Income to Average Working Fund (AWF)	7.60	7.07
Non-Interest Income to AWF	1.17	1.13
Operating Profit to AWF	1.82	1.90
Return on Average Assets	0.63	0.44
Business Per Employee ( in crore)	19.94	18.45
Net Profit per Employee ( in lakh)	8.00	5.07

Figures have been recalculated/ regrouped wherever necessary to confirm the current year classification.

6. Capital to Risk Weighted Assets Ratio (CRAR):

The components of Capital Adequacy Ratio were as under:

	31.03.2024 (FY)*	31.03.2023 (FY)
	Basel-III	Basel-III
Tier-I	12.46%	12.11%
Tier-II	2.62%	2.01%
Capital Adequacy Ratio	15.08%	14.12%

As advised by RBI in its risk assessment report, Bank has computed Capital Ratio after adjustment for reckoning NPV of non-interest bearing recapitalization bond issued by Government of India

7. Net Profit/Loss:

The Bank has earned net profit amounting to 2549 crore during the financial year ended March 31, 2024. Board of Directors has not recommended any dividend on equity shares for the Financial Year 2023-24.

8. Dividend:

With a view to conserve resources for future business operations of the Bank, your Directors did not recommend any dividend for the financial year 2023-24.

9. Changes in the Board during the year:

Shri Rajeev Puri, ceased to be Executive Director of the Bank on account of superannuation from the services of Bank on 30.06.2023.

Shri P J Thomas ceased to be Director of the Board of the Bank w.e.f 14.07.2023 who was appointed as RBI Nominee Director on the Board of the Bank by the Government of India w.e.f 28.09.2020.

Smt. Charulatha S Kar was appointed as RBI Nominee Director of Bank by the Government of India w.e.f

14.07.2023.

Shri Mahendra Dohare was appointed as Executive Director of the Bank by the Government of India w.e.f

09.10.2023.

Further, Shri Priavrat Sharma was appointed as Part Time Non-Official Director under Chartered Accountant Category by the Government of India w.e.f 08.05.2023

10. Whistle Blower Policy:

Bank follows Central Vigilance Commission Guidelines on Whistle Blower complaints under Public Interest Disclosure and Protection of Informers (PIDPI) resolution. Bank has a web based portal in the name of “Cent e-Whistleblower” to facilitate reporting of malpractices by Employees and Directors without revealing their identities, which would be known to the General Manager - Human Resources Department. Directors and Employees may also approach Chairman of the Audit Committee of the Board directly. This may help to curb malpractices, prevent frauds and boost up morale of the employees.

11. Performance Evaluation of The Directors and the Board:

In terms of Regulation 25 of SEBI (LODR) Regulations 2015, the performance of the Board as whole and nonindependent directors was evaluated by the Independent Directors in a separate Meeting held on 05^th September, 2023.

Further, the performance evaluation of Whole Time Directors is carried out by Committee of Board for Performance Evaluation on the basis of guidelines prescribed by Government of India. Further, Performance of non-official Directors/ Shareholder Director is done by Board of Directors on annual basis.

12. Board and Its Sub-Committees:

The composition of the Board and its Sub-committees as required to be constituted as per the SEBI (LODR) Regulations, Government of India / Reserve Bank India Guidelines and the meetings held therein are mentioned in the Corporate Governance Report.

13. Declaration by Independent Directors during the Year:

All the Independent Directors of Bank have submitted the declaration confirming that they meet the criteria of independence as provided under Regulation 25 of SEBI (LODR) Regulations, 2015.

14. Secretarial Audit:

Pursuant to Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019, Bank had appointed M/s. S.G. & Associates (proprietor Mr. Ganesh Ganpule), Practicing Company Secretaries, Mumbai as a Secretarial Auditor to undertake Secretarial audit of Bank for the financial year 2023-24. The Secretarial Audit Report is annexed to this Report.

15. Managements Discussion and Analysis Report:

Pursuant to Regulation 34 read with Schedule V to the Listing Regulations, Managements Discussion and Analysis for the year under review is presented in a separate section forming part of the Annual Report.

16. Business Responsibility and Sustainability Report:

Business Responsibility and Sustainability Report as stipulated under Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been annexed to this report and also hosted on the website of the Bank (www.centralbankofindia.co.in).

17. Dividend Distribution Policy:

In accordance with the Regulation 43A of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank has formulated a Dividend Distribution Policy. The policy has been displayed on the Banks website at (www.centralbankofindia.co.in).

19. Directors Responsibility Statement:

The Directors confirm that in the preparation of the annual accounts for the financial year ended March 31, 2024.

The applicable accounting standards have been followed along with proper explanation relating to material departure, if any; The accounting policies framed in accordance with the guidelines of the Reserve Bank of India were consistently applied; Reasonable and prudent judgement and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit/ loss of the Bank for the financial year ended March 31, 2024. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of the applicable laws governing banks in India.

The accounts have been prepared on a going concern basis. Internal Financial Controls are adequate and were operating effectively and Proper systems have been devised to ensure compliance with the provisions of all applicable laws and these systems are adequate and operating effectively.

19. Corporate Governance:

The Board of the Bank is committed to adopt best Corporate Governance practices in both letter and spirit. The Bank has a well-documented system and practice on Corporate Governance. The Corporate Governance Report of the Bank is annexed to this Report.

20. Acknowledgment:

The Board of Directors places on record its gratitude to the its Shareholders, Government of India, Reserve Bank of India, SEBI, Indian Banks Association, Customers, Depositors, Stock Exchanges Depositories, and the other Stakeholders for their valuable guidance and support. The Board acknowledges with gratitude the unstinted support and faith of its employees, customers and shareholders.

For and on behalf of the Board of Directors

		[M V Rao]
Place	: Mumbai	Managing Director and
Date :	May 28, 2024	Chief Executive Officer