Indian Bank Directors Report

To

The Members,

Your Directors have immense pleasure in presenting the Banks Annual Report along with the Audited Statement of Accounts and the Cash Flow statement for the year ended 31st March 2024.

FINANCIAL HIGHLIGHTS

The major highlights of your Banks performance during FY24 are as follows:

A. RESOURCE MOBILIZATION & ADVANCES: (AmountRs. in Cr)

Particulars	31.03.23	31.03.24	YoY (%)
Global Deposits	621166	688000	10.76
Domestic Deposits	608027	661826	8.85
Of which Current	35366	38598	9.14
Savings	224873	241414	7.36
CASA	260239	280012	7.60
CASA Mix (%)	42.80	42.31	-
Overseas Deposits	13139	26174	99.21
Global Advances (Gross)	473586	533773	12.71
Domestic Advances (Gross)	443921	498160	12.22
Overseas Advances (Gross)	29665	35613	20.05
Total Business	1094752	1221773	11.60
Total Assets	710501	792619	11.56

1. Global Deposits grew by 10.76% YoY and stood atRs.6.88 lakh Cr in March 2024.

2. Domestic Deposits grew by 8.85% toRs.6.62 lakh Cr. Domestic CASA increased toRs.2.80 Lakh Cr registering a growth of 7.60% YoY. In order to augment the CASA portfolio, Bank has mobilized 39.52 lakh new CASA accounts (excluding BSBD Savings account) during FY24.

3. Gross Advances of the Bank (Global) grew by 12.71% YoY and stood atRs.5.34 lakh Cr as on March 31, 2024 fromRs.4.74 lakh Cr as on March 31, 2023.

4. Priority Sector Advances were atRs. 1.79 lakh Cr as on March 31, 2024. Priority sector as a percentage to Adjusted Net Bank Credit (ANBC) for FY24 stood at 43.82% as against the mandatory target of 40.00%.

5. Agriculture Credit (Priority Sector) was atRs.83,590 Cr and as a percentage to ANBC the same stood at 20.52% as against the mandatory target of 18.00%.

6. All mandatory targets under priority sector stipulated by RBI have been surpassed during FY24.

7. Gross NPA and Net NPA reduced toRs.21,106 Cr (3.95%) andRs.2,223 Cr (0.43%) respectively as on March 31, 2024 as againstRs.28,181 Cr (5.95%) andRs.4,045 Cr (0.90%) respectively as on March 31, 2023.

8. Total recovery of NPAs (cash recovery including recovery in AUC accounts, upgradation and MoI) during FY24 amounted toRs.8,799 Cr as againstRs.8,503 Cr in the previous year.

9. Provision Coverage Ratio (PCR) of the Bank improved by 252 bps to 96.34% in FY24 as against 93.82% in FY23.

10. Domestic Branch network of the Bank expanded to 5847, comprising of 1985 Rural, 1530 Semi Urban, 1174 Urban and 1158 Metropolitan branches. Besides, Bank has 3 overseas branches and 1 IFSC Banking unit (GIFT City). Total number of Banks ATMs and BNAs stood at 4937 which include 601 offsite ATMs/BNAs and 2 mobile ATMs. Bank is also having 11297 Business Correspondents taking the Pan India touch points to 22082.

B. INCOME AND EXPENDITURE

(AmountRs. in Cr)

Particulars	31.03.23	31.03.24	YoY (%)
Interest Earned	44942	55615	23.75
Interest Expended	24717	32341	30.85
Net Interest Income (NII)	20225	23274	15.07
Other Income	7143	7867	10.14

(AmountRs. in Cr)

Particulars	31.03.23	31.03.24	YoY (%)
Of which – Fee Income	2969	3298	11.08
Operating Revenue
	27369	31141	13.78
(NII + Other income)
Operating Expenses	12098	14301	18.21
Of which Employee Expenses	7527	9265	23.08
Other operating Expenses	4571	5036	10.17
Operating Profit	15271	16840	10.27
Provisions Other Than Tax	9356	5889	-37.06
Profit before Tax	5915	10951	85.14
Provision for Tax	633	2888	356.24
Net profit	5282	8063	52.65

1. Interest income of the Bank grew by 24% toRs.55,615 Cr in FY24 fromRs.44,942 Cr in FY23.

2. Net Interest Income grew by 15% toRs.23274 Cr in FY24 fromRs.20225 Cr in FY23.

3. Fee based Income grew by 11% toRs.3298 Cr in FY24 fromRs.2969 Cr in FY23.

4. Operating Profit increased by 10% atRs.16840 Cr in FY24 fromRs.15271 Cr in FY23.

5. Profit before Tax grown by 85% toRs.10951 Cr in FY24 fromRs.5915 Cr in FY23.

6. Net Profit up by 53% YoY toRs.8063 Cr in FY24 fromRs.5282 Cr in FY23.

C. KEY RATIOS FOR FY24: (in %)

Parameters	31.03.23	31.03.24
Yield on Advances	7.76	8.72
Cost of Deposits	4.09	4.88
Net Interest Margin	3.37	3.47
Net Interest Margin (Domestic)	3.41	3.54
Cost Income ratio	44.20	45.92
Return on Assets	0.77	1.07
Return on Equity	14.73	19.24
Average Business per employee
	2355	2657
(Rs. in lakh)
Profit per employee (Rs. in lakh)	12.95	20.03

1. Yield on Advances (YoA) up by 96 bps to 8.72% in

FY24 from 7.76% in FY23. Whereas Cost of Deposit increased by 79 bps to 4.88% in FY24 from 4.09% in FY23.

2. Domestic Net Interest Margin (NIM) increased by 13 bps to 3.54% in FY24 from 3.41% in FY23.

3. Return on Assets (RoA) increased by 30 bps to 1.07% in FY24 from 0.77% in FY23.

4. Return on Equity (RoE) up by 451 bps to 19.24% in FY24 from 14.73% in FY23.

5. Average Business per employee increased byRs.302 lakh toRs.2657 lakh in FY24 fromRs.2355 lakh in FY23.

6. Profit per employee increased byRs.7.08 lakh toRs.20.03 lakh in FY24 fromRs.12.95 lakh in FY23.

D. NETWORTH AND CRAR

1. Networth of the Bank stood atRs.47,491 Cr as on March 31, 2024 as againstRs.37,431 Cr in March 31, 2023.

2. During FY24, Bank has raised equity capital ofRs.4000 Cr through QIP resulting in reduction in GoI holding to 73.84% from 79.86%. (in %)

	As on
CRAR as per BASEL III
	31.03.2023	31.03.2024
CET- I	12.89	13.52
Tier- I Capital	13.48	14.03
Tier-II Capital	3.01	2.41
Total	16.49	16.44

1. As per Basel III norms, the CET- I ratio was at 13.52% on 31.03.2024 compared to 12.89% on 31.03.2023 as against minimum requirement of 8.00%.

2. The Tier-I Capital was at 14.03% as on March 31, 2024 as against 13.48% as on March 31, 2023.

3. The Capital to Risk Weighted Assets Ratio (CRAR) was at 16.44% as on March 31, 2024, compared to 16.49% in March 31,2023 as against the regulatory requirement of 11.50%.

E. RECRUITMENT / TRAINING

As per Government guidelines, pre-promotion trainings were offered to SC/ST/OBC employees during the process of internal promotions.

F. CHANGES IN THE BOARD DURING THE YEAR:

All the Directors have been appointed/nominated by the Govt. of India (GOI) except Shareholder Directors. DFS has appointed/nominated

• Shri Ashutosh Choudhury as Executive Director of the Bank with effect from 03.05.2023.

• Smt K Nikhila as RBI Nominee Director with effect from 14.07.2023.

• Shri Shiv Bajrang Singh as Executive Director of the Bank with effect from 09.10.2023.

• Shri Brajesh Kumar Singh as Executive Director of the Bank with effect from 10.03.2024.

• Shri Pradeep Kumar Malhotra was elected as shareholder Director of the Bank for a period of three years with effect from 09.03.2024.

• The term of appointment of Shri Ashwani Kumar as Executive Director of the Bank ceased on 01.06.2023 on his elevation as MD & CEO of UCO Bank.

• The term of appointment of Shri Imran Amin Siddiqui as Executive Director of the Bank ceased on 10.03.2024 on his completion of term of appointment.

• The term of appointment of Dr. Aditya Gaiha as RBI Nominee Director of the Bank ceased on 14.07.2023 vide Government of India, Ministry of Finance, Department of Financial Services, Notification No. eF.No.6/3/2011-BO.I dated 14.07.2023.

• The term of appointment of Dr. Bharath Krishna Sankar as Shareholder Director of the Bank ceased on 07.02.2024 on his completion of term of appointment.

G. DIRECTORS RESPONSIBILITY STATEMENT

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

1. The applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

2. The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied.

3. Reasonable and prudent judgment and estimates were made so as to give a true and fair view on the state of affairs of the Bank at the end of the financial year and profit of the Bank for the year ended March 31, 2024.

4. Proper and sufficient care were taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and

5. The accounts have been prepared on a going concern basis.

H. ACKNOWLEDGEMENT

The Board expresses its deep sense of gratitude to the Government of India, State Governments, Reserve Bank of India and Securities & Exchange Board of India for the valuable guidance and support received from them. The Board is also grateful to the financial institutions and correspondent Banks for their cooperation and support. The Board acknowledges the unstinted support of its customers and shareholders. The Board places on record its appreciation for the valuable contribution made by Shri Ashwani Kumar, Shri Imran Amin Siddiqui, Dr. Aditya Gaiha and Dr. Bharath Krishna Sankar who ceased to be members during the financial year. The Board also places on record its appreciation for the dedicated services and contribution made by members of staff for the overall performance of the Bank.