(A Government Undertaking Sponsored By Union Bank of India) · 2020. 9. 18. · Bank sponsored by Andhra Bank into a single Regional Rural Bank with its Head Office at Guntur, Andhra

HEAD OFFICE

Raghu Mansion, 4/1, Brodipet,GUNTUR - 522 002

ANDHRA PRADESH - INDIA

website : www.cggb.in

(A Government Undertaking Sponsored By Union Bank of India)

EMPTY

Shri T KAMESWARA RAO

CHAIRMAN

3

Shri I Samuel Anand Kumar I.A.S.Collector &

District Magistrate, Guntur

Central GovernmentNominee Director - I

Shri A Koteswara RaoDeputy General Manager,

Andhra Bank,Zonal Office, Eluru,

West Godavari District

Shri M VenkateshDeputy General Manager,

Reserve Bank of India, FIDD,Regional Office, Hyderabad

Dr. K V V Satyanarayana I.R.A.S.

Spl. Secretary, Government of A.P.,AP Secretariat, Amaravati, Guntur Dist.

Shri M SrinivasDeputy General Manager,

Andhra Bank,Zonal Office, Guntur,

Guntur Dist.

Shri Subhash SeraphimDeputy General Manager,

NABARD,Regional Office - AP, Hyderabad

vacant

Central GovernmentNominee Director - II

vacant

EMPTY

5

6

Dr. B.V. RAMANA RAO

GENERAL MANAGER

Mr. M. BALAJI RAO

GENERAL MANAGER-II

VIGILANCE DEPARTMENT :

Mr. B.V.R. MURTHY, Chief Vigilance Officer

PLANNING & DEVELOPMENT DEPARTMENT :

Mr. P. VEERA REDDY, Chief Manager

Mr. B. SIVA RAMI REDDY, Sr. Manager

PREMISES & SERVICES DEPARTMENT :

Mr. M. VENKATESWARA RAO, Chief Manager

ACCOUNTS DEPARTMENT :

Mr. G. AJAYA KUMAR, Chief Manager

CREDIT MONITORING & REVIEW DEPARTMENT :

Mr. D. RATNA KUMAR, Chief Manager

RECOVERY MANAGEMENT DEPARTMENT :

Mr. N. VIDYA SAGAR, Sr. Manager

REGIONAL OFFICE – RAJAHMUNDRY :

Mr. V. SURYANARAYANA, Chief Manager

Mr. S.V.CHANDRASEKHARA REDDY, Chief Manager

Mr. K.V.S.S. RAMA REDDY, Sr. Manager

Mr. U.V.V.S. GOPALA RAJU Sr. Manager

Mr. A.P. NAGESWARA RAO, Sr. Manager

Ms. U. SRIDEVI, Sr. Manager

CHAIRMANMr. T. KAMESWARA RAO

Mr. P. SRINIVASA RAO Mr. M. SRINIVASA REDDY Mr. G. MALLIKHARJUNA RAO

Regional Manager Regional Manager Regional Manager

Regional Office, Guntur Regional Office, Narasaraopet Regional Office, Rajahmundry

HUMAN RESOURCES DEPARTMENT :

Mr. N. KONDAMACHARYULU, Chief Manager

Mr. G. SRINIVASA RAO, Sr. Manager

INFORMATION TECHNOLOGY DEPARTMENT :

Mr. P. SRINIVASU, Chief Manager

Mr. S. VAMSI, Sr. Manager

Mr. S. CHIRANJEEVI, Sr. Manager

INSPECTION DEPARTMENT :

Mr. V. RAMESH BABU, Chief Manager

PUBLIC RELATIONS OFFICER :

Mr. M.M. GOPI KRISHNA, Chief Manager

REGIONAL OFFICE – GUNTUR :

Ms. K. PRATHIBHA, Chief Manager

Mr. G. SUBRAHMANYA KUMAR, Sr. Manager

Mr. M. SRINIVASA REDDY, Sr. Manager

REGIONAL OFFICE – NARASARAOPET :

Mr. S. KAILASANATH, Sr. Manager

Mr. M. TIRUPATHI RAO, Sr. Manager

Mr. S. NANDAIAH, Sr. Manager

(as on 31-03-2020)

Shri GOPAL SINGH GUSAINExecutive Director, UBI

7

Shri RAJKIRAN RAI G.Managing Director &

Chief Executive Officer,

Union Bank of India

Shri DINESH KUMAR GARGExecutive Director, UBI

Shri MANAS RANJAN BISWALExecutive Director, UBI

Shri BIRUPAKSHA MISHRAExecutive Director, UBI

STATUTORY AUDITORS for 2019-20

BRANCH AUDITORS

8

Statutory Central Auditors

M/s BASHA & NARASIMHANChartered Accountants, VISAKHAPATNAM

M/s Grandhy & Co.

Chartered Accountants, Visakhapatnam

M/s Ch.Veera Babu & Co.

Chartered Accountants, Guntur

M/s Lakshmipathi & Co.

Chartered Accountants, Kovvur

M/s M.Bhaskara Reddy &Co.


M/s Rao & Sharma

Chartered Accountants, Bhimavaram

M/s Vasireddy & Associates


M/s Ranjit & Associates


M/s Sudi & Co.


M/s Kunda & Assoiates

Chartered Accountants, Vijayawada

M/s Chinta Krishna Rao & Co.


M/s B. Pandu Ranga Rao & Co.


M/s Repala Mangeswara Rao & Co.


M/s Ravi Sarma & Co.

Chartered Accountants, Kakinada

M/s Eswara Rao & Co.


M/s Garlapati & Co.


M/s Ajay S Agarwal & Associates


M/s HVJ & Associates

Chartered Accountants, Tirupati

Letter of Transmittal

Introduction

Vision & Mission

Board of Directors

Directors' Report

Key Performance Indicators

Auditor's Report

Balance Sheet

Profit & Loss Account

Schedules

9

Contents

Dear Sir,

In accordance with the provisions of section 20 of the Regional Rural Banks Act

1976, I forward herewith the following documents:

A Report of Board of Directors as to the Bank’s working and its activities during the

period 1st April 2019 to 31st March 2020.

A copy of the Audited Balance sheet and Profit and Loss Account for the year ended

31st March 2020.

A copy of the Auditor's report in relation to the Bank’s accounts for the period

1st April 2019 to 31st March 2020.

Place : Guntur

Date : 08.06.2020

LETTER OF TRANSMITTAL

Yours Sincerely

Sd/- T. Kameswara RaoChairman

CHAITANYA GODAVARI GRAMEENA BANK

HEAD OFFICE

GUNTUR - 522 002, ANDHRA PRADESH

The Secretary,Ministry of Finance,Department of Economic Affairs,Banking Division, Government of IndiaParliament Street,NEW DELHI - 110 001

10

INTRODUCTION

11

Government of India, Ministry of Finance has announced theamalgamation of Chaitanya Grameena Bank and Godavari GrameenaBank sponsored by Andhra Bank into a single Regional Rural Bankwith its Head Office at Guntur, Andhra Pradesh, Vide Notificationbearing F.No.1/26/2005-RRB, Dated 01.03.2006.

Thus Chaitanya Godavari Grameena Bank has emerged as a newentity effective from 01.03.2006. The Head Office of the new Bank issituated at Guntur, Andhra Pradesh.

To leverage technology for according

utmost customer satisfaction &

providing credit & credit plus

financial services to the rural people

Chaitanya Godavari Grameena Bank

is committed to usher in prosperity

& plenty by care & concern to the

financial needs of cross section of

rural populace in Guntur, East

Godavari & West Godavari Districts

VISION MISSION

Chairman : 1 Shri T Kameswara Rao

Assistant General Manager, on deputation

from Andhra Bank (now Union Bank of India)

Nominees of Central Government under : 2 vacant

section 9(1)(a) of the Regional Rural Bank’s

Act, 1976

: 3 vacant

Nominee of Reserve Bank of India : 4 Shri M Venkatesh

section 9(1)(b) of the Regional Rural Bank’s Deputy General Manager,

Act, 1976 Reserve Bank of India, FIDD, Regional Office,

Hyderabad

Nominee of NABARD under : 5 Shri Subhash Seraphim

section 9(1)(c) of the Regional Rural Bank’s Deputy General Manager-NABARD,

Act, 1976 Regional Office-AP, Hyderabad

Nominees of Andhra Bank under : 6 Shri M Srinivas

section 9(1)(d) of the Regional Rural Bank’s Deputy General Manager,

Act, 1976 Andhra Bank, Zonal Office,

Guntur, Guntur Dist.

: 7 Shri A Koteswara Rao

Deputy General Manager,

Andhra Bank, Zonal Office,

Eluru, W.G.Dist.

Nominees of State Government under : 8 Dr. K V V Satyanarayana I.R.A.S.,

section 9(1)(e) of the Regional Rural Bank’s Spl. Secretary to Government of Andhra Pradesh,

Act, 1976 Finance Department, AP Secretariat,

Amaravati, Guntur Dist.

: 9 Shri I Samuel Anand Kumar I.A.S.,

Collector & District Magistrate, Guntur

12

BOARD OF DIRECTORS AS ON 31.03.2020

The Board of Directors of CHAITANYA GODAVARI

GRAMEENA BANK have pleasure in presenting the

FIFTEENTH ANNUAL REPORT of the Bank togetherwith the audited Balance Sheet as on 31st March 2020,

Profit & Loss account for the financial year ended 31st

March 2020 and Cash Flow Statement for the financial

year 2019-20, in terms of Section 20 of the Regional Rural

Banks Act, 1976.

OPERATIONAL AREAThe operational area of the bank is spread across Guntur,

East Godavari and West Godavari districts, which arelocated in the rich coastal belt of Andhra Pradesh. The

soils in these districts are very fertile due to the rivers

Krishna and Godavari respectively.

Guntur district is bounded on the North by Nalgondadistrict & Krishna River, on the South by Prakasam district,

on the West by Mahaboobnagar district and on the East

by Krishna district & Bay of Bengal.

The total geographical area of the district is 11,391 sq.km., consisting of 57 mandals spread over 729 villages.

The total population of the district as per 2011 census is48.89 lakh.

The important rivers and rivulets in the district are riverKrishna and rivulets Naguleru, Chandravanka and

Gundlakamma. Predominant crops grown in the districtare Paddy, Cotton, Chillies, Tobacco, etc.

West Godavari district is bounded by river Godavari onthe East, Krishna district on the West, Khammam district

on the North and Krishna district & Bay of Bengal on theSouth.

The total geographical area of the district is 7,742 sq.km.consisting of 46 mandals spread over 887 villages. The

total population of the district as per 2011 census is 39.35lakh.

Godavari is the important river with its tributaries,Gowthami Godavari and Vasishta Godavari, that irrigates

85% of the cultivated land in the district. Paddy is themain crop followed by Sugarcane, Tobacco, Maize,

Cotton, Chillies, etc. Oil palm cultivation is increasing day

by day.

East Godavari district is bounded on the North byVisakhapatnam district and the State of Orissa, on the

East by Bay of Bengal, on the South and on the West by

West Godavari and Khammam districts.

The total geographical area of the district is 10,818 sq.km.consisting of 60 mandals spread over 1404 villages. The

total population of the district as per 2011 census is 51.52

lakh.

SHARE CAPITALThe authorized share capital of RRBs was raised fromRs.5 crore to Rs.2000 crore in terms of the amendment

made to RRB Act in 2015.

The share capital of the bank as on 31.03.2020 is as

under:

Central Government (50%) : Rs.3,72,11,000

Sponsor Bank (35%) : Rs.2,60,47,700

State Government (15%) : Rs.1,11,63,300

Total : Rs.7,44,22,000

The Sponsor Bank, i.e. Andhra Bank got amalgamatedinto Union Bank of India with effect from 01.04.2020 and

the shares of Sponsor Bank got transferred from Andhra

Bank to Union Bank of India accordingly.

RESERVES & SURPLUSStatutory Reserves increased to Rs.9949.53 lakh duringthe year from Rs.8535.53 lakh as on 31.03.2019.

The total reserves and surplus increased to Rs.49740.25

lakh during the year from Rs.42676.02 lakh as on31.03.2019.

Own funds increased to Rs.50484.47 lakh during the year

from Rs.43420.24 lakh as on 31.03.2019.

Investment Fluctuation Reserve (IFR) increased to

Rs.1180.00 lakh during the year from Rs.393.00 lakh ason 31.03.2019.

13

DIRECTORS’ REPORT

14

IFR was created by the bank during the precedingyear, i.e. 2018-19, to take care of market fluctuations in

the value of investments held in AFS category.

NETWORK OF BRANCHESThe bank is operating through 220 branches and 1

extension counter. The district-wise break up of branches

is as under:

District / Rural Semi- Urban TotalCategory Urban

Guntur 70 37 14 121

East Godavari 27 22 4 53

West Godavari 26 16 4 46

Total 123 75 22 220

Extn. Counters 1 0 0 1

The bank has 57 own ATMs including 2 Cash Recyclers

as on 31.03.2020. Three ATMs are off-site and the rest

are on-site.

The Bank has opened 02 branches [1 branch in Guntur

district and 1 branch in West Godavari district] during

the financial year 2019-20.

REGIONAL OFFICES

The bank is having three regional offices, viz. Guntur,

Narasaraopet and Rajahmundry. The branches are

organized under the regional offices as under :

Regional Office District No. of

Branches

Guntur Guntur 67

Narasaraopet Guntur 54

RajahmundryEast Godavari 53

West Godavari 46

Total 220

AGGREGATE BUSINESS

The aggregate business of the bank, region-wise, as on

31.03.2020 is given hereunder:

(Amount Rs. lakh)

Region No.of Deposits Advances Aggregate

branches Business

Guntur 67 229454.95 173685.48 403140.43

Narasaraopet 54 117573.82 204181.71 321755.53

Rajahmundry 99 190942.57 160801.27 351743.84

Total 220 537971.34 538668.46 1076639.80

CATEGORISATION OF BRANCHESThe categorization of branches is undertaken as per the

applicable norms and the position as on 31.03.2020 is as

under:

Category of Branch No of Branches

Scale V 3

Scale IV 38

Scale III 106

Scale II 66

Scale I 7

Total 220

DEPOSITSThe Total Deposits of the Bank as on 31st March 2020

stood at Rs.537971.34 lakh. The net accretion of Deposits

during the year 2019-20 is Rs.92194.26 lakh registering a

growth rate of 20.68%.The percentage of low cost deposits

to total deposits is 31.53% as on 31st March 2020. The

cost of deposits worked out to 6.58%. Per-branch deposits

worked out to Rs.2445.32 lakh and Per-Employee deposits

stood at Rs.506.56 lakh.

15

The details of borrowings outstanding, sector-wise, as on

31.03.2020 are given hereunder:

(Rs. lakh)

Sector NABARD Andhra NHB NSCFDC

Bank

STL (SAO) 37000.00 1.49 0.00 0.00

STL (DTP) 1000.00 0.00 0.00 0.00

STL (Addl.) 30000.00 0.00 0.00 0.00

ST (Others) 00.00 0.00 0.00 0.00

MT (SCH) 107661.31 0.00 204.91 360.00

Total 175661.31 1.49 204.91 360.00

CASH & BALANCES WITH BANKS

Cash management has been given utmost importance and

cash retention limits were fixed to the branches. Cash

balances maintained by branches are being monitored

regularly to ensure that only minimum cash balances are

maintained.

Adequate balances are maintained with Reserve Bank of

India in the current account, as per the requirement of CRR

throughout the year under report.

The Bank is maintaining current accounts with Sponsor Bank

in order to have effective cash remittances from the

branches. Apart from Sponsor Bank, bank is also maintaining

current accounts with State Bank of India, IDBI Bank Ltd.,

Indian Overseas Bank, Kotak Mahindra Bank Ltd., Axis Bank

Ltd. and Indian Bank to facilitate cash & clearing transactions.

The details of cash on hand (including those held with ATMs)

and balances held by the bank in current account with

Reserve Bank of India and current accounts and other

accounts with other banks are as under:

The category-wise break-up of deposits as on 31.03.2020

is as under:

Type of No. of Amount % to Total

Deposit Accounts (Rs. lakh) Deposits

Current Deposits 18833 11257.77 2.09

Savings Deposits 1710904 158369.07 29.44

Term Deposits 218416 368344.50 68.47

Total Deposits 1948153 537971.34 100.00

CUSTOMER BASEDuring the current year, there has been an increase in

the number of accounts as furnished hereunder,

registering growth rate of 6.07% in customer base.

March 2019 March 2020 Growth

Deposits 1797832 1948153 150321

Advances 444942 430801 (-)14141

Total 2242774 2378954 136180

CUSTOMER SERVICEThe bank has been extending good customer service

through its network of branches duly taking care of their

required banking needs. The bank has conducted good

number of “customer meets” for creating awareness

about various deposit schemes and advances schemes

offered.

BORROWINGSMajor source of borrowings for the bank continued to be

from NABARD followed by our Sponsor Bank i.e. Andhra

Bank, NHB and NSCFDC. Bank has adopted a judicious

approach on borrowings considering the cost of

borrowings. High cost limits from Sponsor Bank are drawn

as and when required only, utilizing low cost limits from

NABARD to their full extent. Bank is prompt in repaying

the installments and interest on refinance throughout the

year under report.

16

(Rs. lakh)

Average Deposits 472426.06

Average Cash Holdings 6960.37

Average Cash Holding to

Average Total deposits (%) 1.47

Average Balances held with

Reserve Bank of India 19501.94

Average Balances with Sponsor

Bank / Other Banks 8721.77

Average Balances with Sponsor

Bank /Other Banks in Other Accounts 38213.60

Income received on the balances

in other accounts 2126.85

Our bank is a sub-member (type – II) of Axis Bank Ltd. for

CTS clearing with “520 702 102” as its common MICR code

for all the branches.

INVESTMENTSThe bank has invested its surplus funds in approved

securities as per the Investment Policy of the bank, after

carefully considering the various options available, in

consultation with the Investments and International Banking

Department (IIB), Andhra Bank, Mumbai in order to earn

maximum possible income/return. Investments in

Government Securities are made through IIB only. The

premium paid for the purchase of Government Securities

is being amortized over the remaining period of currency

of the Investment.

The Bank has earned profit of Rs.546.03 lakh on sale of

SLR securities from AFS category and Rs.241.45 lakh on

sale of Non-SLR securities during the year under report.

Thus total reported profit for the financial year 2019-20 on

sale of investments stood at Rs.787.48 lakh.

The bank did not incur Mark to Market (MTM) losses as at

the end of the financial year.

INVESTMENTSPARTICULARS

As a prudent measure, Rs.787.00 lakh, being an amount

equivalent to the profit on sale of investments, is

transferred to Investment Fluctuation Reserve (IFR) to

take care of volatility in the market prices of securities in

future. Then, the total IFR stood at Rs.1180.00 lakh.

The details of investments and income thereon are

furnished hereunder:

(Rs. lakh)

SLR NON-SLR TOTAL

Total Gross

Investments 114196.91 18218.35 132415.26

Less : Amortization 195.67 0.00 195.67

Net Investments 114001.24 18218.35 132219.59

Break-up of Investments:

HTM Category 71464.23 0.00 71464.23

AFS Category 42537.01 18218.35 60755.36

HFT Category 0.00 0.00 0.00

Total 114001.24 18218.35 132219.59

Interest Earned 7501.35 1918.51 9419.86

Investments in Mutual Funds were made as per the extant

guidelines and the total amount outstanding was within

the 5% (of incremental deposits during the preceding

financial year) limit, throughout the year under report.

The Non-SLR investments, outstanding as on 31.03.2020,

of Rs. 18218.35 lakh consisted of Bonds & Debentures

only.

Investments in Mutual Funds, equity and convertible

debentures are NIL as on 31.03.2020.

The investments in HTM category in excess of the 25%

of the total investments as on 31.03.2020 stood at

Rs. 38409.33 lakh. But the same is within the guidelines,

as the total investments in HTM category is less than

19.50% of NDTL applicable.

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Further, there are no Non-Performing Investments as at

the end of the financial year 2019-20.

Investments to Deposits Ratio stood at 24.58 %.

LOANS & ADVANCESBank has made considerable efforts to meet the integrated

credit needs of customers especially in rural areas by

intensive credit expansion.

The aggregate loans and advances of the bank as on

31st March 2020 stood at Rs. 538668.46 lakh. The net

accretion of advances during the year 2019-20 was

Rs.26393.43 lakh registering a growth rate of 5.15%. The

advances reported in the balance sheet are net advances

as detailed hereunder:

(Rs. lakh)

Total Loans & Advances 538668.46

Less: IBPC sold with the participation

of Axis Bank Ltd. 35000.00

Less: Provision for NPAs 4525.00

Net Loans & Advances reported in the

balance sheet 499143.46

The scheme-wise break-up of outstandings are as under:

Particulars No. of Amount

accounts (Rs. lakh)

Short Term Agricultural Loans 322460 309965.41

Agricultural Term Loans 10198 6287.08

CCMTL 149 16.60

MSME 49096 38080.94

Other Priority Sector Loans 38031 146807.23

Total Priority Sector Loans 419934 501157.26

Non-Priority Sector loans 10867 37511.20

TOTAL LOANS & ADVANCES 430801 538668.46

DISBURSEMENTS OF LOANS & ADVANCESThe total disbursements of loans and advances during

the year are Rs.431068.10 lakh as against the MoU target

of Rs.513300.00 lakh. The details of achievement during

the year under report are furnished hereunder:

Particulars Amount

(Rs. lakh)

Short Term Agricultural Loans 305735.17

Medium Term Agricultural Loans 2254.66

MSME 6366.87

Self Help Groups 93392.48

Other Priority Sector Loans 5530.45

Total Priority Sector Loans 413279.63

Non-Priority Sector Loans 17788.47

Total Disbursements 431068.10

The sector-wise break up of advances is given

hereunder:

Particulars Amount

(Rs. lakh)

Total Advances 538668.46

Advances to Priority Sectors 501157.26

% to Total Advances 93.04%

% of Priority Sector Advances to

Advances net of IBPC 92.55%

Advances to Non-Priority sectors 37511.20

% to Total Advances 7.45%

Credit to Deposit Ratio 93.62%

Average Yield on Advances (%) 10.55%

Per- Branch Advances 2448.49

Per- Employee Advances 507.22

Agricultural Advances 436164.15

SHG-BANK LINKAGEThe Bank has extended outstanding credit linkage to the

tune of Rs.135332.60 lakh spread over 38768 Self-Help

Groups (SHGs) as on 31.03.2020, as against

Rs.103063.38 lakh to 30319 SHGs as on 31.03.2019,

thus registering an increase in the SHG portfolio of

31.31% during the year under report and it reflects the

focus of the Bank on SHG-Bank Linkage. It is pertinent

to mention that Bank has extended credit linkage to 21195

SHGs to the tune of Rs.93392.48 lakh during 2019-20.

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COMPREHENSIVE CROP INSURANCE

In pursuant with the Govt. of India guidelines and National

Agriculture Insurance Company’s crop insurance schemes,

the Bank implemented Pradhan Mantri Fasal Bima Yojana

(PMFBY) & Restructured Weather Based Crop Insurance

Scheme (RWBCIS).

Govt of AP, vide G.O.Ms No.62, Dt: 15.07.2019,

communicated that the State Govt would pay farmer’s share

of crop insurance premium for PMFBY & RWBCIS for Khariff

2019 & directed Banks to inform farmers to pay a token

amount of Rs.1/- per loan account & ensure 100% coverage

of all eligible accounts under PMFBY & RWBCIS.

In line with the said GO, the Bank ensured crop insurance

enrollment of 40,956 farmers during Khariff 2019 under both

PMFBY & RWBCIS.

Govt of AP, vide G.O.Ms No.119 Dt: 22.12.2019 &Dept of

Agriculture, Govt of AP, Circular RcNo.Crop Ins (1) 37/2018,

dt: 23.12.2019, declared crop insurance as 100% State

Scheme for all eligible crops under RWBCIS & PMFBY for

Rabi 2019-20 & intimated that all fresh enrollments for the

crop season would be done through e-Karshak portal by

the Government, with no further involvement of bank

branches.

A.P. GOVT. DEBT REDEMPTION SCHEMEThe Bank received an amount of Rs.2144.65 lakh during

the current year from Govt. of Andhra Pradesh under Debt

Redemption Scheme 2014 in different phases and the entire

claim amount was passed on to individual borrower

accounts. The total amount received since 2014-15 under

the said scheme stood at Rs. 45299.50 lakh.

NON-FUND BUSINESSThe Bank has outstanding Bank Guarantees business to

the tune of Rs.1518.03 lakh as on 31st March 2020.

The size-wise break-up of disbursements to SHGs during

the year under report is as under:

Size of Credit Linkage No. of A/cs Amount ( Rs. lakh)

Up to Rs 5.00 lakh 14471 63570.04

Up to Rs 7.50 lakh 3772 16635.81

Up to Rs 10.00 lakh 2946 13111.63

Above Rs 10.00 lakh 6 75.00

Total 21195 93392.48

Bank has also opened accounts for 2 transgender SHGs,

the first of its kind, through its Jangareddygudem branch,

West Godavari district during 2018-19 and the groups have

availed linkage during 2019-20.

FINANCE TO JOINT LIABILITY GROUPSDuring the financial year, the Bank promoted 242 new JLGs

(both farm sector & non-farm sector) and, out of these,

financed 190 JLGs (both farm sector & non-farm sector)

with a financial outlay of Rs.2.69 crore.

The Bank financed 2257 JLGs (both farm sector &non-farm

sector) with a total disbursement of Rs.58.51 crore during

FY 2019-20.

The bank has financed to 28029 tenant farmers with a credit

outflow of Rs. 338.46 crore through RMGs, JLGs, COCs,

CCRCs and LECs during the current year.

DIVERSIFICATION OF BUSINESS/PROCESSESRetail Credit as a percentage of total credit stood at 7.96%

as on March 2020.

Investment Credit as a percentage of total credit stood at

0.68% as on March 2020.

Growth in Rural Housing Loans under Priority Sector is

Rs. 11.88 Crore and as a percentage to growth in Gross

Bank Credit it stood at 4.50% during the year 2019-20.

Disbursement of Education Loans stood at Rs. 1553.49 lakh

during 2019-20 as against Rs. 1567.72 lakh during the

previous year 2018-19.

19

INTER BANK PARTICIPATION CERTIFICATE[IBPC]

The Bank has issued Inter Bank Participation Certificate

(IBPC) of Rs.35000.00 lakh, on risk sharing basis, with

the participation of Axis Bank Ltd., during the current year,

covering Priority Sector Advances –Direct Agri. at a

competitive interest rate. Accordingly, advances are

reported in the balance sheet as net of IBPC of Rs.

35000.00 lakh.

ASSET CLASSIFICATIONIn tune with the guidelines given by Reserve Bank of India/

NABARD, assets of the bank as on 31.03.2020 are

classified into Standard, Sub-standard, Doubtful and Loss

Assets and provisions were made as per the extant

guidelines applicable there for.

The break-up of Non-Performing Assets (NPAs) as on

31.03.2020 is as under:

(Rs. lakh)

Substandard Assets 2674.30

Doubtful Assets 2700.56

Loss Assets 275.54

TOTAL NPAs 5650.40

PROVISIONSBank made provision for NPAs over and above the

required provision as per IRAC norms. The Provision

Coverage Ratio (PCR) stood at 80.08% as on 31st

March 2020. The details are mentioned hereunder:

Total NPAs Rs. 5650.40 lakh

Cumulative Provision against NPAs Rs.4525.00 lakh

% of Provision to NPAs 80.08

Additional Provision on Restructured MSME a/cs

(Amount Rs. lakh)

No. of MSME accounts covered 115

Amount rescheduled 120.56

Amount of provision @5% 6.03

The classification of assets and provisions made are


(Rs. lakh)

Particulars Amount Provision Provision

Outstanding To be made Made

Standard assets 533018.06 1427.22 1443.50

Sub-standard assets 2674.30 469.83

Doubtful assets 2700.56 1578.02

Loss assets 275.54 275.54

Non-performing assets 5650.40 2323.39 4525.00

Total Advances 538668.46

Total Advances less IBPC 503668.46

Cumulative provision

against NPAs 4525.00

% of Gross NPA

to Advances 1.12

% of Net NPA to

Net Advances 0.23

COVID-19 RegualtoryPackage 32.60 32.60

MOVEMENT OF NPAConsistent and strategic efforts are made throughout the

financial year to recover NPAs and contain addition offresh NPAs. The net increase in NPAs is contained at a

low level of Rs.9.73 crore as against net increase in

advances of Rs. 263.93 crore during the year under report.The details of movement of NPAs are given hereunder:

(Amount Rs.Crore)Particulars AmountGross NPA as on 01.04.2019 (Opening Balance) 46.77Additions (Fresh NPAs) during the year 31.30Sub-total (A) 78.07Less : (i) Up-gradations 2.64 (ii) Recoveries (excluding recoveries made from up-graded a/cs) 14.64 (iii) Write-offs 4.29Sub-total (B) 21.57Gross NPA as on 31.03.2020

(Closing Balance) [(A-B)] 56.50

INTEREST DERECOGNISEDIn accordance with IRAC norms, the bank has not booked

income and has derecognized interest and other charges

to the extent of unrealized amounts under NPAs. The

details are furnished hereunder:

(Rs. lakh)

Derecognized income at the

beginning of the year 1750.75

Additions during the year 1067.05

Recovery during the year 914.26

Derecognized income at the end of the year 1903.54

RECOVERY OF LOANSThe Bank continued its thrust on recovery of loans through

various modes with focus on reduction of both NPAs and

also overdue accounts. Efforts for recovery of ‘Written-

off Accounts’ in order to improve the profitability was given

due emphasis during the current financial year.

Intensive recovery efforts made included the following

channels:

1. Comprehensive Compromise Settlement

2. One-Time Settlement (OTS) Scheme for Real

Account Balances up to Rs. 3.50 lakh per borrower

(other than accounts covered under A.P. Debt

Redemption Scheme 2014)

3. Special OTS scheme for settlement of accounts

under doubtful, loss and technically written-off status

with real account balances up to Rs.3.50 lakh per

borrower and received debt waiver amount as on

31.12.2019

4. Special Recovery Drives

5. Enforcement of SARFAESI Act

The recovery to total demand as on 30th June 2019 stood

at 82.54 % for the period under report and the break-up

for farm and non-farm sectors is given hereunder:

(Amount Rs. lakh)

Farm Non-Farm Total

Sector Sector

Demand 321794.66 94476.96 416271.62

Recovery 253826.97 89748.36 343575.33

Overdue 67967.69 4728.60 72696.29

% of recovery 78.88 94.99 82.54

WRITE-OFF LOANSThe details of written-off loans and recoveries made there

under are mentioned hereunder:

(Amount Rs. lakh)

Particulars 2017-18 2018-19 2019-20

Amount written-off

(technical write-off ) 0.00 399.20 429.45

Number of accounts

written-off 0.00 1925 1056

Recovery made in

written-off accounts 19.01 51.84 15.54

ACHIEVEMENTS MADE UNDER MoU WITHSPONSOR BANKThe Bank has achieved some of the major parameters under

MoU entered with Sponsor Bank, for the financial year 2019-20

The details of performance vis-à-vis the MoU targets are


(Amount Rs. lakh)

Parameter 31.03.2019 Target Achievement

2019-20 as on

31.03.2020

Own Funds 43420.24 51420.24 50484.47

Total Business 908051.91 1020000.00 1041639.80�

Deposits 445776.88 490000.00 537971.34�

Advances 462275.03 530000.00 503668.46

Borrowings 185808.12 195500.00 176227.71

Operating Profit 12358.18 13800.00 13592.79

NPA 4677.11 5300.00 5650.40

Investments 133267.77 120000.00 132219.59�

20

Loans Issued 427775.11 513300.00 431068.10

PerBranch

Business 4165.38 4749.00 4734.73

PerEmployee

Business 920.05 1046.00 971.41

CD Ratio (%) 103.70 108.16 93.62

Cost of

Deposit (%) 6.40 6.30 6.58

Yield on

Advances (%) 10.45 10.50 10.55�

Recovery to

Demand (%) 81.15 83.00 82.54

MoU REVIEW BY SPONSOR BANKThe MoU Review by MD&CEO, Andhra Bank was held

for every quarter that provided valuable insights for the

growth of the Bank.

CROSS SELLING OF INSURANCE PRODUCTSOF IFLICBank is functioning as a corporate agent for selling life

insurance products of India First Life Insurance Company

Ltd. (IFLIC). Bank could secure business worth of

Rs.460.78 lakh from 6085 applications during 2019-20.

Bank could earn non-interest income of Rs.122.51 lakh

towards commission received from IFLIC on account of

the said business during the current year.

OTHER CHANNEL PARTNERS FOR INSURANCEBUSINESSBank has an agreement with Shriram General Insurance

Co. Ltd. under general insurance and business of

Rs. 110.04 Lakh is procured during the current year.

Bank also has an agreement with Star Health and Allied

Insurance Co. Ltd. under health insurance and business

of Rs. 17.13 lakh is sourced.

OPERATING PROFIT AND NET PROFIT

The Bank has earned operating profit of Rs. 13592.79

lakh and net profit after tax of Rs.7064.23 lakh during the

financial year 2019-20, as against Rs.12358.18 lakh and

Rs.6649.76 lakh respectively during the preceding year

2018-19.

INCOME EARNED

The details of the income earned are furnished below:

(Rs. lakh)

Particulars 2019-20

Interest received on loans and advances 53888.03

Income on investments 9419.86

Interest on RBI balances and other

inter-bank funds 2126.85

Non-interest income 6501.20

Total 71935.94

The share of non-interest income to the total income stood

at 9.04%.

EXPENDITURE INCURRED

The details of the expenditure incurred are furnishedbelow:

(Rs. lakh)

Particulars 2019-20

Interest paid on deposits 31071.51

Interest paid on refinance availed 9192.38

Interest paid on Inter Bank Participation Certificates issued 2600.74

Other expenditure 15478.52

Total 58343.15

21

2222

FINANCIAL RATIOSImportant financial ratios for the current year vis-à-vis thatfor the previous year are mentioned hereunder:

2019-20 2018-19

Average Working Funds

(Rs.lakh) 750528.91 668479.61

Financial Return (% of interestincome to average working funds) 8.72 8.86

Financial Cost (% of interestexpended to average working funds) 5.71 5.74

Financial Margin (FinancialReturn – Financial Cost) 3.01 3.12

Operating Cost (% of operatingexpenses to average working funds) 2.06 2.11

Miscellaneous Income (% ofnon-interest income to averageworking funds) 0.86 0.84

Operating Profit (FinancialMargin + MiscellaneousIncome-Operating Cost) 1.81 1.85

Risk Cost (% of loss provisionsmade to average working funds) 0.15 0.03

Net Margin (Return on Assets) [% of net profit after tax

to average working funds] 0.94 0.99

CAPITAL ADEQUACY RATIOThe Capital Adequacy Ratio (CRAR) of the Bank stood at

11.49% as on 31.03.2020 as against the mandatory

requirement of 9.00% (Previous year: 10.32%)

Out of the above, the Tier I Capital and Tier II Capital

stood at 10.65% and 0.84% respectively.

INCOME TAXAdvance tax of Rs.5000.00 lakh was paid to Income Tax

Department.

Provision for Income Tax of Rs. 4795.75 lakh was made

during the current year. The provision included the amount

of income tax paid of Rs.203.88 lakh under “Vivad Se

Vishwas Scheme” of Income Tax Department pertaining

to Assessment Years 2012-13 and 2013-14. The income

tax pertaining to the previous financial year 2018-19 is

charged to Income Tax account to the extent of Rs. 107.87

lakh during the current year.

The estimate of provision for income tax for the current

year stood at Rs.4484.00 only.

HUMAN RESOURCESThe Bank has committed staff strength of 1062 comprising

623 officers, 277 Office Assistants and 162 Office

Attendants.

The cadre-wise and grade-wise break-up of manpower in

the Bank is given hereunder:

Cadre Grade No. of staff

Senior Management

Grade-Scale V 2

Senior Management

Grade-Scale IV 39

Middle Management

Officer Grade- Scale III 69

Middle Management

Grade- Scale II 155

Junior Management

Grade- Scale I 358

Total 623

OAS(Office

Assistant) 277

OAT(Office

Attendant) 162

Grand Total 1062

HUMAN RESOURCE DEVELOPMENTBank recruited 3 Officers –Scale III, 30 Officers- Scale II,

39 Officers – Scale I and 64 Office Assistants (OAS)

through IBPS – RRB – CWE VII recruitment during

2019-20.

During 2019-20, Bank has effected promotions to 73 staff

members in different cadres, viz. 20 Officers from Scale

III to Scale IV, 14 Officers from Scale II to Scale III,

22 Officers from Scale I to Scale II and 17 Office Assistants

to Officer-Scale I cadre.

Bank has been imparting need-based training to all staff

members for enhancing their knowledge and skills. Bank

conducted in-house training programs for 159 officers and

organized on-site programs in collaboration with Bankers

Institute of Rural Development (BIRD), Mangalore for

73 Branch Managers during the year under report.

Induction Training was provided to 59 officers and 55 OAS

at Andhra Bank Apex College, Hyderabad. In addition,

nominations were made to premier external training

institutes for 19 officers for training in specialized areas.

STAFF WELFAREPension Fund for payment of pension to employees in

terms of the CGGB (Employees’) Pension Regulations,

2018 (as notified in the official gazette by Government of

India on 12.12.2018) is created and Rs.14817.00 lakh was

provided for, in Schedule 11 of the balance sheet as on

31.03.2019.

Bank appointed LIC of India as Fund Manager for the

pension fund and made payment of Rs. 11257.00 lakh to

it during the current financial year.

Rs.3052.00 lakh was accounted for during the previous

year, i.e. 2018-19 and Rs.2874.80 lakh is accounted for

during the current year, i.e. 2019-20, to Profit & Loss

Account. This amortization of pension liability for a period

of five years commencing from the year 2018-19 is in

accordance with the guidelines issued by NABARD in this

regard. Thus the Pension Fund stood at Rs.8890.20 lakh

as on 31.03.2020.

2323

Bank also made contributions of Rs. 78.39 lakh through

Stock Holding Corporation of India Ltd., the Fund Manager

for NPS, to NSDL in respect of the employees covered

under National Pension System(NPS).

The Medical Insurance Scheme for Staff is renewed, during

the year under report, with Star Health and Allied Insurance

Company Ltd. on 06.04.2019, as per Ministry of Finance,

GoI, letter dated 20.10.2016 issued in terms of Joint Note

dated 25.05.2015 on Salary revision and 10th Bi-Partite

Settlement between IBA and Employees’ Unions of PSBs.

The coverage for Officers, Office Assistants and Office

Attendants, along with their dependents, is Rs.4.00 lakh,

Rs.3.00 lakh and Rs.3.00 lakh respectively.

The bank had Group Gratuity Cash Accumulation Scheme

with LIC of India &India First Life Insurance Company

Ltd.(IFLIC) as a staff welfare measure. The annual

premium is being paid regularly. The gratuity is paid to

staff members on retirement or on death from the Fund

regularly.

INDUSTRIAL RELATIONSThe industrial relations atmosphere in the Bank during

the year under report has been healthy and very cordial.

SC/ST WELFAREA separate SC/ST cell is functioning at Head Office as

per guidelines. The General Manager is the liaison officer.

Quarterly Structural Meetings are held with SC/ST

Employees’ Welfare Association during the year under

report. The representation of SCs and STs stood at 167and

67 respectively, among the total staff strength of 1062 in

the Bank.

Dr. B.R. AMBEDKAR’S BIRTH DAYCELEBRATIONSDr. B.R. Ambedkar’s Birth Anniversary was celebrated at

Head Office on 14.04.2019 by paying tribute to the leader

and conducting staff meeting.

2424

INTERNATIONAL WOMEN’S DAYCELEBRATIONSInternational Women’s Day celebrations were conducted

at Branches, Regional Offices and Head Office on

07.03.2020, as 08.03.2020 fell on holiday.

IBPS – RRB – CWE VIII – INTERVIEWSThe Bank has successfully conducted interviews for all

RRBs in A.P. on behalf of Institute of Banking Personnel

Selection (IBPS) for candidates for Officer – Scale I, II and

III posts and the Bank was appreciated by IBPS for the

smooth conduct of the same.

RISK MANAGEMENTThe Bank has put in place a comprehensive “Asset Liability

Management Policy” for the management of market risk

as per the NABARD/RBI guidelines. Accordingly, the

functions of Asset Liability Management (ALM) are

introduced in the Bank.

Asset-Liability Committee (ALCO) oversees the ALM in the

Bank and deliberates on liquidity and interest rate scenario

in the market. ALCO regularly monitors the identification,

measurement, monitoring and mitigation of market risk in

liquidity and interest rates.

Asset Liability Committee [ALCO] meets at regular intervals

to provide guidance and directions in implementing the risk

management initiatives of the Bank. The Management

Information System (MIS) required for ALM is being tracked

from CBS in full measure.

The ‘liquidity risk’ is measured and managed through ‘gap

analysis’ for maturity mismatches based on residual

maturity. The liquidity position of the bank is assessed by

means of Structural Liquidity Statement and projections in

Short Term Dynamic Liquidity Statement. For assets and

liabilities, which are of non-maturity nature, Bank is

conducting behavioral studies and factoring the

observations in the gap analysis. Prudential limits are fixed

as per NABARD guidelines and these limits are measured

and monitored regularly.

The ‘interest rate risk’ is managed through gap analysis.

The ALM status note is being put up to the Board for approval

every quarter regularly.

Operational Risk Management

To have a consistent and effective operational risk

management framework which can help achieve

organizational objectives with enhanced performance, a

booklet in the form of “Dos and Don’ts”on Operational Risk

Management is brought out. The booklet is supplied to all

the staff members of the Bank.Risks embedded in the day-

to-day operations are being identified and addressed timely.

Credit transactions in staff accounts of Rs.50,000/- and

above in cash and Rs.1 lakh and above by transfer are

monitored on monthly basis regularly.

SECURITY ARRANGEMENTSBank has drawn up plans and taken up measures to

strengthen the security arrangements at all our branches.

Security Officer is posted at Head Office to monitor and to

strengthen further. As a part of enhancing security and

ambience, 10 branches are shifted to new premises with

strong room with adequate space for customer use during

the current year. Burglar Alarms, Fire Extinguishers and

CCTV cameras are provided at all the branches.

TECHNOLOGY UPGRADATION

Several technology up-gradations are undertaken by the

bank during the year under report and notable ones are

highlighted hereunder:

1 AePS ON-US � AePS ON-US 2.5 standards

2.5 Certification prescribed by UIDAI were

implemented on 28.05.2019

Certification with NPCI for AePS

ON-US 2.5 was completed.

� Go-Live took place on 08.08.2019

2 Bio metric login � Bio metric login module for staff

module login to CBS was implemented

on 21.05.2019.

25

� Two factor authentication for

login to CBS is implemented.

3 AePS Tokenization � AePS Tokenization certification

certification was completed on 26.06.2019

� As per NPCI - AePS 2.5

specification, bank has to

handle AePS transactions

using token instead of

AADHAAR number. Our Bank

had completed tokenization

testing with NPCI and went

live. Bank is having total

AADHAAR count of 11,47,470 for

which tokens have been

generated.

4 AePS offline � It was completed on 28.06.2019

certification for

Data Navigator

5 UPI 2.0 � Implemented UPI 2.0 on

01.08.2019

� UPI will offer the mandate

service that will allow both payer

and payee to create mandates or

standing instructions (SI) through

their respective PSPs/banks.

� Transaction limit is increased to

Rs. 2 lakh per day

6 IFLIC Runaraksha � New scheme “Runaraksha Life

scheme Insurance scheme” of IFLIC is

customized for enrollment and

collection of premium for term

Insurance cover of individual

borrowers.

� Menu was customized on

02.08.2019

7 AePS ON-US 2.5 � AePS ON-US 2.5 BOSS

BOSS Mandate Mandate went live on

08.08.2019

8 AePS OFF-US 2.5 � AePS OFF-US 2.5 standards

prescribed by UIDAI was

implemented on

29.09.2019

Certification with NPCI for AePS

OFF-US 2.5 was completed and

went live on 29.09.2019

9 CKYC � CKYC module was implemented

and certification process was

completed on 12.03.2020

10 Alternate Channels� No. of Transactions through

– Progress during alternate channels:

the current year Mobile Banking : 1,33,819

2019-20 UPI : 39,03,331

Total : 40,37,150

FINANCIAL INCLUSION INITIATIVEThe Financial Inclusion (FI) is in operation in 215 villages,

viz. Guntur District: 131, East Godavari District: 41 and West

Godavari District: 43.

M/s Coromandel Info Tech India Ltd. and M/s Magnot

Consultancy Services Pvt. Ltd. are the Technical Service

Providers (TSP).

Implementation of FI during 2019-20 is summarized

hereunder:

Sl.No. ParameterTarget - Achievement

March 2020 as on

31.03.2020

1 Deployment of

Business

Correspondents 210 215

2 No.of transactions

from

01-04-2019 to

31-03-2020 16,43,538 19,00,695

3 Volume of

business Rs.46155.89 lakh Rs.68507.20 lakh

2626

Atal Pension Yojana (APY):In respect of cumulative average performance under APY,

our RRB stood first among RRBs in Andhra Pradesh and

Telangana States for the last five years. Our Bank stood

second among RRBs in South India during the current year.

Our Bank has received ‘Achiever Award’ for surpassing

the APY target given by PFRDA during 2019-20.

Financial Literacy Centers (FLCs):Bank has appointed four counselors for the 3 FLCs and they

are conducting FLACs as per the target given by RBI at

satisfactory level. 510 Financial Literacy Awareness Camps

(FLACs) are conducted by the FLCs, out of which 82 are

Special Camps on ‘Going Digital’ and 428 are ‘Target Group’

specific camps through rural branches, during the year under

report.

NABARD has sanctioned Rs.24.96 lakh as grant assistance

under Financial Inclusion Fund (FIF) to conduct 416 FLACs

during 2019-20, against which all the 416 camps are

conducted in 9 months (i.e. July 2019 to March 2020).

INTERNAL INSPECTIONAs on 31.03.2020, out of 179 branches eligible for inspection,

Regular Internal Inspection of all the 179 branches has been

completed.

Out of these 179 branches, 144 branches have got ‘A’ rating

and 35 branches have got ‘B’ rating.

Necessary follow-up action is taken up on continuous basis

for rectification of lapses and deviations.

CONCURRENT AUDITConcurrent Audit of branches, by independent chartered

accountant firms and a few retired officers of our Bank, is

being undertaken for 77 branches as on 31.03.2020.

STATUTORY INSPECTION BY NABARDNABARD has conducted statutory inspection under section35(6) of Banking Regulation Act 1949, from 01.07.2019 to

16.07.2019, with reference to the financial position of the

bank as on 31.03.2019.

All BC outlets are active and incremental growth during the

year under report is as under:

Parameter 2018-19 2019-20 Growth (%)

Total transactions 14,98,492 19,00,695 26.84

Volume of business

(Rs. crore) 429.36 685.07 59.55

Average transactions

per BC per month 656 756 15.24

Average remuneration

to BC (Rs.) 8181 8320 0.59

Transaction cost (Rs.) 17.98 16.08

The transaction cost decreased from Rs.17.98 during 2018-

19 to Rs.16.08 during 2019-20 registering a decrease of

10.57%.

Progress Under PM’s Social Security Schemes:

Sl. Name of the No. of Accounts/Enrolments

No. Scheme March 2019 March 2020

1,84,894 1,84,859

No. of a/cs No. of a/cs

transacted: transacted:

1 PMJDY 1,74,220 1,74,803

Zero balance Zero balance

a/cs : 5.77% a/cs : 5.44%

2 PMSBY 3,73,391 3,94,934

3 PMJBY 1,05,618 1,26,804

4 PMAPY 38,938 51,256

Bank registered disbursements under Pradhan Mantri Mudra

Yojana (PMMY) of Rs. 156.78 Crore as against the target

of Rs 300.00 Crore for the year 2019-20.

In respect of PMJDY accounts, the percentage of active

Rupay Cards vis-à-vis total Rupay Cards issued by the bank

stood at 72.52%

Overdraft facility disbursed to eligible PMJDY accounts stood

at 4.23% as on March 2020.

Aadhaar Seeding of bank accounts is completed to an extent

of 93% as on March 2020.

2727

MANAGEMENT AUDITSponsor Bank, i.e. Andhra Bank has conducted the

Management Audit (MAD) of the Bank from 21.12.2019 to

31.12.2019. The Bank has secured “VERY GOOD” rating.

FRAUD CASESDuring the year under report, one fraud incident at a branch

was identified and reported. Adequate provisions have been

made for frauds to the extent of losses assessed and not

covered under NPA provisions.

SOCIAL RESPONSIBILITYThe Bank has always been conscious of its responsibility to

the Society and has been in the forefront in participating in

events of importance and utility to the Society which it serves.

Bank stood as a patron for Regional SARAS/DWCRA Bazaar

held at Vijayawada in September 2019 which was organized

by SERP, Government of A.P., at the aegis of Ministry of

Rural Development, Government of India.

The bank also stood as a patron for Andhra Pradesh State

Cross Country Championship held at Guntur in December

2019 which was organized by Athletics Association of Guntur

District, affiliated to Athletics Federation of India.

AWARDS AND ACCOLADESDuring the current year, the Bank received the following

Awards and Accolades:

(i) ‘APY Achiever Award 2019-20'

(ii) ‘Winning Wednesday April 2019’ under APY

(iii) ‘APY Trendsetters Campaign – April 2019’

(iv) ‘Warriors of Winning Wednesday – Nov 2019’ under APY

(v) ‘APY Out performers – Dec 2019’

(vi) ‘Rise Above Rest – March 2020’ under APY

(vii) ‘Beat the Best Campaign – March 2020’ under APY

(viii) ‘APY Game Changers – March 2020’

(ix) IBA Banking Technology Awards 2020:

(a) Joint Runner up under “Best Digital Financial

Inclusion Initiatives”

(b) Certificate of Appreciation under “Best Technology

Bank of the Year”

BOARD MEETINGSSix Board meetings have been convened by the Bank during

the year 2019-20, as against stipulated minimum of six during

a year and one in each quarter.

04 Circular Resolutions were passed by the Board of

Directors owing to urgency, during the year 2019-20. All these

resolutions were confirmed by the Board in its next meetings.

Two board level committees, viz. Audit Committee and

Special Committee of the Board to monitor Fraud Cases of

Rs. 20.00 lakh and above (SCBF) met four times during the

current year.

The following Directors have assumed Office during the year

under report:

a) Mr. T Kameswara Rao, Chairman, CGGB

b) Mr. I Samuel Anand Kumar, I.A.S., Collector &

District Magistrate, Guntur

c) Mr.Subhash Seraphim, Dy.G.M., NABARD, APRO,

Hyderabad

d) Mr. M. Srinivas, Zonal Manager, Andhra Bank, Z.O.,

Guntur

e) Mr. A Koteswara Rao, Zonal Manager, Andhra

Bank, Z.O., Eluru

The following Directors have vacated office during the year

under Report:

a) Mr. V Brahmananda Reddy, Chairman, CGGB

b) Mr. K Sasidhar, I.A.S., Collector & District

Magistrate, Guntur

c) Mr. G Santhanam,Dy.G.M., NABARD, APRO,

Hyderabad

d) Mr. P S R K Prasad, Zonal Manager, Andhra Bank,

Z.O., Guntur

e) Mr. R V Ramana Rao, Zonal Manager, Andhra Bank,

Z.O., Eluru

The Board wishes to place on record its appreciation and

gratitude for the valuable services and guidance rendered

by the Directors who have demitted Office during the year

under Report.

2828

GRATEFUL ACKNOWLEDGEMENTSThe Board wishes to place on record its appreciation for the

patronage extended by its valued customers, which has

enabled the Bank to show good business performance during

the current year. The Board thanks all the customers for the

confidence reposed in the Bank and their continued

patronage. The Bank renews its commitment for rendering

a better service to them in future.

The Board wishes to thank the shareholders of the Bank,

viz. Government of India, Union Bank of India (eAndhra

Bank) and Government of Andhra Pradesh for their

cooperation at all levels for the growth of the Bank.

The Board also expresses its sincere gratitude to Reserve

Bank of India, National Bank for Agriculture and Rural

Development (NABARD), Andhra Bank, National Housing

Bank and NSFDC for their valuable guidance and support

extended to the Management from time to time.

The Board of the Bank also conveys its sincere thanks to

the Collector and District Magistrate, District Administration

in the three districts of Guntur, East Godavari & West

Godavari, for their continuous support extended to the Bank.

The Board also thanks the Statutory Central Auditors,

M/s Basha & Narasimhan, Visakhapatnam and 17 Statutory

Branch Auditors, viz. M/s Grandhy& Co., Visakhapatnam,

M/s Chinta Krishna Rao & Co., Guntur, M/s Ch.Veera Babu

& Co., Guntur, M/s B. PanduRanga Rao & Co., Guntur,

M/s Lakshmipathi & Co., Kovvur, M/s Repala Mangeswara

Rao & Co., Guntur,M/s M. Bhaskara Reddy & Co., Guntur,

M/s Ravi Sarma & Co., Kakinada, M/s Rao & Sharma,

Bhimavaram, M/s Eswara Rao & Co.,Guntur, M/s Vasireddy &

Associates,Guntur, M/s Garlapati&Co.,Guntur, M/s Ranjit &

Associates, Guntur, M/s Ajay S Agarwal & Associates,Guntur,

M/s Sudi & Co., Guntur, M/s HVJ & Associates, Tirupati and

M/s Kunda & Associates, Vijayawada, Chartered

Accountants, for their cooperation, guidance and completion

of the statutory audit within the scheduled timeline.

The Board records its appreciation for all the staff members

for their dedicated involvement in the growth and functioning

of the Bank. It is due to their unstinted efforts that the Bank

could post good performance during this year and could

surpass the targets under the MoU. The Board looks forward

for their motivated involvement and sustained efforts for the

overall development of the Bank in future also.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Place : GUNTUR

Date : 08-06-2020

BOARD OF DIRECTORS

T KAMESWARA RAOCHAIRMAN

Dr K V V SatyanarayanaNominee Director,

Govt. of Andhra Pradesh

I Samuel Anand KumarNominee Director,


M VenkateshNominee Director,

RBI

Subhash SeraphimNominee Director,

NABARD

M SrinivasNominee Director,

Union Bank of India

A Koteswara RaoNominee Director,

Union Bank of India

1 No. of Districts covered

2 No. of Branches

a) Rural

b) Semi-Urban

c) Urban

3 Total Staff

a) Officers

b) Office Assistants

c) Office Attendants

4 Deposits

Growth %

5 Loans & Advances

Growth %

Loans & Advances net of IBPC of

Rs.45000 lakh, Rs. 50000 lakh

and Rs. 35000 lakh

Growth %

6 Borrowings Outstanding

Growth %

7 CD Ratio

8 Investments Outstanding

Growth %

9 Average Deposits

Growth %

10 Average Loans & Advances

Growth %

11 Average Borrowings

Growth %

12 Average Investments

Growth %

13 Average Working Funds

KEY PERFORMANCE INDICATORS(Amount Rs. lakh)

29

3

204

110

72

22

745

504

231

10

390672.27

18.70

418926.41

25.23

373926.41

22.79

122254.82

27.00

95.71

98940.37

13.16

335869.11

9.01

382175.26

26.82

117711.00

19.01

88701.55

7.46

542464.30

3

220

123

75

22

1062

623

277

162

537971.34

20.68

538668.46

5.15

503668.46

8.95

176227.71

(-)5.16

93.62

132219.59

(-)0.79

472426.06

22.18

510858.59

6.81

141247.73

(-)14.70

120350.49

20.85

750528.91

3

218

121

75

22

975

571

242

162

445776.88

14.10

512275.03

22.28

462275.03

23.63

185808.12

51.98

103.70

133267.77

34.70

386678.91

15.13

478289.69

25.15

165587.72

40.67

99585.78

12.27

668479.61

S. No Key Performance Indicators 2017-18 2018-19 2019-20

30

14 Loans Issued during the year

a) Loans to Priority Sector

b) Loans to Non - Priority Sector

c) Total Loans issued

15 Per Branch Business

16 Per Employee Business

17 Recovery performance

(% of Collection to Demand)

18 Classification of Advances

a) Standard Assets

b) Sub-standard assets

c) Doubtful Assets

d) Loss Assets

Total NPAs

Total Advances

19 % of Standard Assets to Gross

Advances outstanding

20 Interest Paid on

a) Deposits

b) Borrowings

21 Salary & Allowances

22 Other Operating Expenses

23 Provisions made against Loans and Advances

a) Against NPA

b) Other Provisions

Total

24 Interest Received on

a) Loans & Advances

b) Investments

25 Other Income

26 Profit Before Tax

27 Profit After Tax

28 Cost to Income Ratio

385508.58

42266.53

427775.11

4165.38

920.05

81.15

507597.92

2678.26

1911.67

87.18

4677.11

512275.03

99.09

24744.22

11107.60

9893.31

4203.34

4048.77

1402.76

5451.53

49961.42

7453.69

5584.37

11352.20

6649.76

53.29

336292.51

23880.43

360572.94

3748.03

989.39

83.40

415044.56

1511.99

2363.52

6.34

3881.85

418926.41

99.07

22157.35

8013.73

6324.86

3903.25

3881.85

1923.10

5804.95

41168.81

7471.32

5403.56

12705.08

8190.33

42.87

413279.63

17788.47

431068.10

4734.73

971.41

82.54

533018.06

2674.30

2700.56

275.54

5650.40

538668.46

98.95

31071.51

9192.38

11361.92

4116.60

4525.00

1476.10

6001.00

53888.03

9419.86

2126.85

11505.98

7064.23

53.24

(Amount Rs. lakh)

3131

ToThe ShareholdersChaitanya Godavari Grameena Bank

Opinion 1. We have audited the accompanying financial

statements of Chaitanya Godavari GrameenaBank (“the Bank”) as at 31st March 2020, whichcomprises of Balance Sheet as at 31st March,2020, Profit and Loss Account and the cash flowstatement for the year then ended, and a summaryof significant accounting policies and otherexplanatory information, Incorporated in thesefinancial statements are the returns of:

(i) The Head Office and 20 Branches audited by us(ii) 111 Branches audited by other auditors.

The branches audited by us and those auditedby other auditors have been selected by the Bankin accordance with the guidelines issued to theBank by National Bank for Agriculture and RuralDevelopment (“NABARD”). Also incorporated inthe Balance Sheet and the Statement of Profit andLoss are the returns from 89 branches which havenot been subjected to audit. These unauditedbranches account for 32.25 % of deposits and24.14 % of advances.

2. In our opinion, as shown by books of the bank,and to the best of our information and accordingto the explanations given to us:

(i) The Balance Sheet, read with the significantaccounting policies and the notes thereon is a fulland fair Balance Sheet containing all thenecessary particulars, and is properly drawn upso as to exhibit a true and fair view of state ofaffairs of the Bank as at 31st March 2020 inconformity with accounting principles generallyaccepted in India;

(ii) The Profit and Loss Account, read with thesignificant accounting policies and the notesthereon shows a true balance of profit, is inconformity with accounting principles generallyaccepted in India, for the year covered by theaccount; and

(iii) The Cash Flow Statement gives a true and fairview of the cash flows for the year ended on thatdate.

Basis for Opinion

3. We conducted our audit in accordance with theStandards on Auditing (“SAs”) issued by Instituteof Chartered Accountants of India (“ICAI”). Ourresponsibilities under those Standards are furtherdescribed in the Auditor’s Responsibilities for theAudit of the Financial Statements section of ourreport. We are independent of the Bank inaccordance with the code of ethics issued by theInstitute of Chartered Accountants of India togetherwith ethical requirements that are relevant to ouraudit of the financial statements, and we havefulfilled our other ethical responsibilities inaccordance with these requirements and the codeof ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate toprovide a basis for our opinion.

Emphasis of Matter 4. Without qualifying our opinion, we bring to your

attention the following:

(i) We draw attention to Note Number 24 of thefinancial statements, which describes the extentto which COVID-19 Pandemic will impact theBank’s operations and financial results. This issignificantly dependent on future developments,which are highly uncertain.

(ii) The Government imposed lockdown and travelrestrictions has resulted in restriction on physicalvisit to the Bank and to rely on alternative audit

Independent Auditor’s Report on the FinancialStatements

AUDITOR’S REPORT

procedures as per the Standards on Auditingprescribed by ICAI.

As a result of the above, the entire statutory auditof the bank has been carried out remotely basedon data shared by the Bank through electronicmode. This has been carried out based on theadvisory on “Specific Considerations whileconducting Distance Audit/ Remote Audit/ OnlineAudit of Bank Branch under current COVID-19situation” issued by the Auditing and AssuranceStandards Board of ICAI. We have beenrepresented by the Chairman of the Bank thatPhysical Verification of Cash/Gold/ Stationery hasbeen done by the Bank and the data provided forour audit purposes is correct, complete, reliableand are directly generated by the accountingsystem of the bank without any further manualmodifications.

The financial statements of the Bank has been thusprepared and presented by the bank and auditedby us in the aforesaid conditions.

Other Matter

5. Without qualifying our opinion, we bring to yourattention the following:

We did not audit the financial statements /information of 111 Branches included in thefinancial statements of the Bank whose financialstatements / financial information reflect totaladvances of Rs. 4,12,966.57 Lakhs as at 31stMarch 2020. The financial statements / informationof these branches have been audited by the otherauditors whose reports have been furnished to us,and in our opinion in so far as it relates to theamounts and disclosures included in respect ofbranches, is based solely on the report of suchother auditors.

Responsibility of the Management and thosecharged with Governance for the FinancialStatements

6. The Bank’s Management and Board of Directorsare responsible for preparation of these financial

statements that give a true and fair view of thefinancial position, financial performance and cashflows of Bank in accordance with the applicableprovisions of Regional Rural Bank Act, l976,Banking Regulations Act,1949, complying with theguidelines issued by Reserve Bank of India (“RBI”)and NABARD from time to time and recognizedaccounting policies and practices generallyaccepted in India, including the AccountingStandards issued by ICAI. This responsibility alsoincludes maintenance of adequate accountingrecords in accordance with the provisions of theAct for safeguarding of the assets of the Bank andfor preventing and detecting frauds and otherirregularities; selection and application ofappropriate accounting policies; making judgmentsand estimates that are reasonable and prudent;and design, implementation and maintenance ofadequate internal financial controls, that wereoperating effectively for ensuring the accuracy andcompleteness of the accounting records, relevantto the preparation and presentation of the financialstatements that give a true and fair view and arefree from material misstatement, whether due tofraud or error.

In preparing the financial statements, Managementis responsible for assessing the Bank’s ability tocontinue as a going concern, disclosing, asapplicable, matters related to going concern andusing the going concern basis of accounting unlessmanagement either intends to liquidate the Bankor to cease operations, or has no realisticalternative but to do so.

Auditor’s Responsibility for audit of financialstatements

7. Our responsibility is to express an opinion on thesefinancial statements based on our audit. Weconducted our audit in accordance with theStandards on Auditing issued by the ICAI. ThoseStandards require that we comply with ethicalrequirements and plan and perform the audit toobtain reasonable assurance about whether thefinancial statements are free from material

32

misstatement, whether due to fraud or error, andto issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an auditconducted in accordance with SAs will alwaysdetect a material misstatement when it exists.Misstatements can arise from fraud or error andare considered material if, individually or in theaggregate, they could reasonably be expected toinfluence the economic decisions of users takenon the basis of these financial statements. As partof an audit in accordance with SAs, we exerciseprofessional judgment and maintain professionalscepticism throughout the audit.

An audit involves performing procedures to obtainaudit evidence about the amounts and disclosuresin the financial statements. The proceduresselected depend on the auditor’s judgment,including the assessment of the risks of materialmisstatement of the financial statements, whetherdue to fraud or error. In making those riskassessments, the auditor considers internal controlrelevant to the Bank’s preparation and fairpresentation of the financial statements in order todesign audit procedures that are appropriate in thecircumstances. An audit also includes evaluatingthe appropriateness of accounting policies usedand the reasonableness of the accountingestimates made by management, as well asevaluating the overall presentation of the financialstatements.

We also :(i) Identify and assess the risks of material missta-

tement of the financial statements, whether due tofraud or error, design and perform audit proceduresresponsive to those risks, and obtain auditevidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override ofinternal control.

(ii) Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosuresmade by management.

(iii) Conclude on the appropriateness of management’suse of the going concern basis of accounting and,based on the audit evidence obtained, whether amaterial uncertainty exists related to events orconditions that may cast significant doubt on thebank’s ability to continue as a going concern. lf weconclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report tothe related disclosures in the financial statementsor, if such disclosures are inadequate, to modifyour opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’sreport. However, future events or conditions maycause the bank to cease to continue as a goingconcern.

(iv) Evaluate the overall presentation, structure andcontent of the financial statements, including thedisclosures, and whether the financial statementsrepresent the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with those charged withgovernance regarding, among other matters, theplanned scope and timing of the audit andsignificant audit findings, including any significantdeficiencies in internal control that we identifyduring our audit.

We also provide those charged with governancewith a statement that we have complied withrelevant ethical requirements regardingindependence, and to communicate with them allrelationships and other matters that mayreasonably be thought to bear on ourindependence, and where applicable, related

33

Place : Visakhapatnam (Camp)

Date : 08-06-2020

For BASHA & NARASIMHAN

CHARTERED ACCOUNTANTS

Firm Regn. No: 006031S

Sk. Phyaji Basha Saheb

Membership No: 023417

PARTNER

UDIN : 20023417AAAACH2743

safeguards.

We believe that the audit evidence we haveobtained is sufficient and appropriate to provide abasis for our audit opinion.

Report on Other Legal and RegulatoryRequirements

8. The Balance Sheet and the Profit and Loss Accounthave been drawn up in Forms “A” and “B”respectively of the Third Schedule to the BankingRegulation Act, 1949. Subject to the limitations ofthe audit indicated in paragraph 4 to 7 above andas required by the Regional Rural Banks Act 1976and the Banking Companies (Regulation) Act,1949, and subject also to the limitations ofdisclosure required therein, we report that:

(i) We have obtained all the information andexplanations which to the best of our knowledgeand belief, were necessary for the purposes of ouraudit and have found them to be satisfactory.

(ii) The transactions of the Bank, which have come toour notice, have been within the powers of theBank.

(iii) The returns received from the offices and branchesof the Bank have been found adequate for thepurposes of our audit.

(iv) The Balance Sheet, Profit and Loss Account andCash Flow Statement dealt with by this report, arein agreement with the books of Account and theReturns.

(v) In our opinion, proper books of account as requiredby law have been kept by the Bank so far asappears from our examination of those books.

(vi) The report on the financial statements of thebranches audited by branch auditors have beendealt with in preparing our report in the mannerconsidered necessary by us.

In our opinion, Balance Sheet, Profit and LossAccount and Cash Flow Statement comply withthe applicable accounting standards, to the extentthey are not inconsistent with the accountingpolicies prescribed by RBI.

34

CHAITANYA GODAVARI GRAMEENA BANKHEAD OFFICE : GUNTUR

3535

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31st MARCH 2020

FORM- A

BALANCE SHEET AS ON 31st MARCH 2020

74422

4974025

53797134

17622771

2254399

78722751

2814062

8241242

13221959

49914346

160702

4370440

78722751

166335

120397

74422

4267602

44577688

18580812

3966214

71466738

2730176

4789868

13326777

45822626

166145

4631146

71466738

194206

155697

Amount Rs. '000

PARTICULARS SCHEDULE 31.03.2020 31.03.2019

CAPITAL & LIABILITIES

Share Capital 1

Reserves & Surplus 2

Deposits 3

Borrowings 4

Other Liabilities & Provisions 5

TOTAL

ASSETS

Cash & Balance with R B I 6

Balance with Banks & Money 7

at call and Short Notice

Investments 8

Advances * 9

Fixed Assets 10

Other Assets 11

TOTAL

Contingent Liabilities 12

Bills for Collection

* Advances are netted of IBPC of Rs.350.00 crore as on 31.03.2020 and

Rs.500.00 crore as on 31.03.2019

The schedules referred to above and schedules 17 & 18 form an

integral part of Balance Sheet

3636

For BASHA & NARASIMHANCHARTERED ACCOUNTANTS


Sk. Phyaji Basha SahebMembership No: 023417

PARTNERUDIN : 20023417AAAACH2743

As per our report of even date

Place : GUNTUR

Date : 08-06-2020

BOARD OF DIRECTORS







RBI


NABARD


Union Bank of India


Union Bank of India

Amount Rs. '000

PARTICULARS SCHEDULE 31.03.2020 31.03.2019

1. INCOME

Interest Earned 13

Other Income 14

Total

2. EXPENDITURE

Interest Expended 15

Operating Expenses 16

Provisions & Contingencies

TOTAL

3. PROFIT / LOSS

A. Net Profit before Tax for the year(1-2)

Less: Provision for Income Tax

Add: Deferred Tax Asset

Net Profit after Tax for the year

B. Net Profit after Tax for the year

Profit brought forward from the previous year

TOTAL

4. APPROPRIATIONS

Transferred to Statutory Reserve

Transferred to General Reserve

Transferred to IFR

Balance carried forward to balance sheet

TOTAL

Significant accounting policies 17

Notes forming part of the accounts 18


3737

FORM- B

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31st March 2020

6543474

650120

7193594

4286463

1547852

5834315

208681

6042996

1150598

479575

35400

706423

706423

100

706523

141400

486323

78700

100

706523

5925223

558437

6483660

3838177

1409665

5247842

100598

5348440

1135220

504809

34565

664976

664976

3

664979

133000

492579

39300

100

664979

The schedules referred to above and schedules 17 & 18 form an integral part of

Profit & Loss Account

3838






Place : GUNTUR

Date : 08-06-2020

BOARD OF DIRECTORS







RBI


NABARD


Union Bank of India


Union Bank of India

SCHEDULE 1

CAPITAL

SCHEDULE 2

RESERVES & SURPLUS

Particulars 31.03.2020 31.03.2019

Authorised Capital of 200,00,00,000 Shares of Rs.10 each 20000000 20000000

Issued,Subscribed & Paid up Capital of 74,42,200

Shares of Rs.10/- each 74422 74422

Total 74422 74422

Particulars 31.03.2020 31.03.2019

I Statutory Reserves

a. Opening Balance

b. Additions during the year

II Capital Reserve

III Share Premium

IV Revenue and Other Reserves

A. General Reserve

a. Opening Balance


c. Drawals during the year

B. Investment Fluctuation Reserve

a. Opening Balance


V Balance in Profit & Loss A/c.

Total


Rs.'000

3939

853553

141400

24000

0

3350649

486323

0

39300

78700

100

4974025

Rs.'000

720553

133000

24000

0

2858070

492579

0

0

39300

100

4267602

SCHEDULE 3

DEPOSITS

SCHEDULE 4

BORROWINGS

Particulars 31.03.2020 31.03.2019

I. Demand Deposits

i. From Banks

ii. From Others

II. Saving Bank Deposits

III. Term Deposits

i. From Banks

ii. From Others

TOTAL

Particulars 31.03.2020 31.03.2019

I. Borrowings in INDIA

i. Reserve Bank of India

ii. Other Banks -Andhra Bank

iii. NABARD

iv. Other Inst. & Agencies

TOTAL

4040

0

1125777

15836907

1000000

35834450

53797134

0

149

17566131

56491

17622771

0

1071996

13547461

1100000

28858231

44577688

0

149

18154040

426623

18580812

Rs.'000

Rs.'000

SCHEDULE 5

OTHER LIABILITIES AND PROVISIONS

SCHEDULE 6

CASH & BANK BALANCES WITH RBI

Particulars 31.03.2020 31.03.2019

I. Bills payable

II. Inter Office adjustments (Net)

III. Interest Payable

IV. Others (Including Provisions)

TOTAL

Particulars 31.03.2020 31.03.2019

Cash & Bank Balances with RBI

I. Cash on Hand

II. Balances with Reserve Bank of India

i. In Current Account

ii. In Other Accounts

TOTAL

4141

32106

0

135499

2086794

2254399

707972

2106090

0

2814062

61956

0

400610

3503648

3966214

Rs.'000

Rs.'000

998776

1731400

0

2730176

SCHEDULE 7

BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE

SCHEDULE 8

INVESTMENTS

Particulars 31.03.2020 31.03.2019

I. Balances with Banks

a) in Current Account

b) in Other Deposit Accounts

II. Money at Call & Short Notice

Total

Particulars 31.03.2020 31.03.2019

I . INVESTMENTS IN INDIA

i. Govt. Securities

ii. Other Approved Securities

iii. Shares

iv. Debentures & Bonds

v. Others-Mutual Funds

Total

4242

1340085

6901157

0

8241242

11400124

0

0

1821835

0

13221959

876362

3913506

0

4789868

11373557

0

0

1953220

0

13326777

Rs.'000

Rs.'000

SCHEDULE 9

ADVANCES

Particulars 31.03.2020 31.03.2019

A. I. Bills Purchased & Discounted

II. Cash Credits, Overdrafts & Loans repayable on demand*

III. Term Loans

TOTAL OF A

B. I. Secured by Tangible Assets*

II. Covered by Banks/Govt. guarantees

III. Unsecured

TOTAL OF B

C. I. Advances in India

a. Priority Sector*

b. Public Sector

c. Banks

d. Others

TOTAL OF C (I)

C. II. Advances outside India

TOTAL OF C (I) & C (II)

4343

*Advances are netted of IBPC of Rs 350 crore & Rs 500 crore during 2019-20 & 2018-19respectively

756

42086407

7827183

49914346

49667464

0

246882

49914346

46183454

0

0

3730892

49914346

0

49914346

11534

37095041

8716051

45822626

45542315

0

280311

45822626

42167204

0

0

3655422

45822626

0

45822626

Rs.'000

SCHEDULE 10

FIXED ASSETS

SCHEDULE 11

OTHER ASSETS

Particulars 31.03.2020 31.03.2019

I. Premises

II. Other Fixed Assets

WDV as on 31st March of the Previous year

Add: Additions during the year

Less: Deductions during the year

WDV at the end of the year before depreciation

Less: Depreciation for the year

Total

Particulars 31.03.2020 31.03.2019

I. Inter Office Adjustments (Net)

II. Interest Accrued

III. Tax paid in advance / TDS

IV. Stationery & Stamps

V. Non Banking Assets Acquired

VI. Pension Fund

VII. DTA

VII. Others

Total

4444

0

166145

31682

772

197055

36353

160702

7

783029

568110

12542

0

889020

69965

2047767

4370440

Rs.'000

Rs.'000

0

172407

47628

179

219856

53711

166145

3

827505

501926

12207

0

1176500

34565

2078440

4631146

SCHEDULE 12

CONTINGENT LIABILITIES

SCHEDULE 13

INTEREST EARNED

SCHEDULE 14

OTHER INCOME

Particulars 31.03.2020 31.03.2019

I. Guarantees given on behalf of constituents

II. DEAF scheme - Amount transferred to RBI

III. Others

Contingent Liabilities - Total

Bills for collection

Particulars 31.03.2020 31.03.2019

I. Interest/Discount on Advances/Bills

II. Income on Investments

III. Interest on balances with RBI

and other Inter-Bank Funds

IV. Others

Total

Particulars 31.03.2020 31.03.2019

I. Commission, Exchange & Brokerage

II. Profit on sale of Bank Assets

III. a) Profit on sale of Investments

b) Profit on revaluation of Investments

c) Depreciation on Non-SLR investments

IV. Miscellaneous

Total

4545

151803

14532

0

166335

120397

5388803

941986

212685

0

6543474

29432

80

78748

0

0

541860

650120

180351

13555

300

194206

155697

4996142

745369

183712

0

5925223

37562

7

39317

0

0

481551

558437

Rs. '000

Rs.'000

Rs.'000

SCHEDULE 15

INTEREST EXPENDED

SCHEDULE 16

OPERATING EXPENSES

Particulars 31.03.2020 31.03.2019

I. Interest on Deposits

II. Interest on RBI/Inter-Bank Borrowings

III. Others

Total

4646

Particulars 31.03.2020 31.03.2019

I. Payments to & Provisions for Employees

II. Rent, Taxes & Lighting

III. Printing & Stationery

IV. Publicity

V. Depreciation on Bank’s Property

VI. Directors Fee, Allowances and Expenses

VII. Auditors Fees and Expenses

VIII. Law Charges

IX. Postage, Telegrams & Telephones

X. Repairs and Maintenance

XI. Insurance

XII. Other Expenditure

Total

3107151

919238

260074

4286463

1136192

58430

10597

2901

36353

0

2390

191

2877

12898

63619

221404

1547852

2474422

1110760

252995

3838177

989331

52432

11085

3721

53711

22

2318

26

3239

12481

55252

226047

1409665

Rs.'000

Rs.'000

SCHEDULE – 17

SIGNIFICANT ACCOUNTING POLICIES


4747

1. GENERAL :

1.1 Basis of preparation

The Bank’s financial statements are prepared on historical cost convention and on accrual basis ofaccounting, unless otherwise stated, by following going concern assumption and conform in all materialaspects to Generally Accepted Accounting Principles (GAAP) in India which comprise applicablestatutory provisions, regulatory norms/ guidelines prescribed by the Reserve Bank of India (RBI)/National Bank for Agriculture and Rural Development (NABARD), Banking Regulation Act, 1949,Regional Rural Banks Act, 1976 as amended up to date, Accounting Standards, Guidance Notesissued by the Institute of Chartered Accountants of India (ICAI) and practices prevailing in the bankingindustry in India.

1.2 Use of estimates

The preparation of financial statements requires the management to make estimates and assumptionsconsidered in the reported amount of assets and liabilities (including contingent-liabilities). as of dateof the financial statements and- the reported income and expenses for the reporting period. Managementbelieves that the estimates used in the financial statements are prudent and reasonable and arebased upon management’s evaluation of the relevant facts and circumstances as of the date of financialstatements. Future results could differ from these estimates. Any revision in the accounting estimatesis recognized in the period in which the results are known / materialized.

2. REVENUE RECOGNITION :

2.1 Income and Expenditure are generally recognized on accrual basis, except the following:

i. Interest on non-performing advances and non-performing investments is recognized based onrealization as per prudential norms laid down by Reserve Bank of India, in view of uncertaintiesof collection of income in such cases.

ii. Income by way of commission, exchange, brokerage, fee and interest on overdue bills areaccounted for on realization.

iii. Locker rent and commission on bank guarantee are recognized on realization basis.

iv. In case of suit filed accounts, related legal and other expenses incurred are charged to Profitand Loss account and on recovery the same are accounted as income.

2.2 Partial recoveries in non-performing advances are appropriated in the following order ofpriority:

i. Expenditure/out of pocket expenses incurred for recovery

ii. Interest irregularities/accrued interest

iii. Principal irregularities i.e. Principal outstanding in the account

4848

2.3 In case of non-performing advances involving compromise settlements, the recoveries are firstadjusted towards principal.

3. INVESTMENTS:

The guidelines issued by RBI for Investment Portfolio of RRBs are adopted by our Bank.

3.1 Categorization

The entire investment portfolio of the RRBs comprising SLR securities and non-SLR securities areclassified under three categories viz. ‘Held to Maturity’, ‘Available for Sale’ and ‘Held for Trading’.

However, in the Balance Sheet, the investments will continue to be disclosed as per the existing fiveclassifications viz. (1) Government Securities (2) Other Approved Securities (iii) Shares (iv) Debentures& Bonds (v) Others like Mutual Fund Units, etc.

RRBs should decide the category of the investment at the time of acquisition and the decision shouldbe recorded on the investment proposals.

3.2 Definitions

(i) The securities acquired by the RRBs with the intention to hold them up to maturity will beclassified under Held to Maturity (HTM).

(ii) The securities acquired by the RRBs with the intention to trade by taking advantage of theshort-term price/interest rate movements will be classified under Held for Trading (HFT).

(iii) The securities which do not fall within the above two categories will be classified under Availablefor Sale (AFS).

3.3 Valuation

A. In determining the acquisition cost of an investment,

(i) Brokerage, commission, securities transaction tax and stamp duty paid in connection withacquisition of investments is treated as revenue expenditure.

(ii) Broken period interest paid/received on debt instruments is treated as interest expense/incomeand is excluded from cost/sale consideration.

(iii) Cost is determined on the weighted average cost method for all the categories of investments.

B. The investments are valued in accordance with the guidelines issued by Reserve Bank of India onthe following basis:

i. Investments classified under Held to Maturity category need not be marked to market and willbe carried at acquisition cost unless it is more than the face value, in which case the premiumshould be amortized over the period remaining to maturity.

The banks should reflect the amortized amount in schedule 13-Interest earned: item II – Incomeon investments as a deduction.

However, the deduction need not be disclosed separately. The book value of the securityshould continue to be reduced to the extent of the amount amortized during the relevantaccounting period.

ii. The individual scrips in the Available for Sale category will be marked to market at quarterly orat more frequent intervals. The book value of the individual securities would not undergo anychange after the revaluation.

4949

iii. The individual scrips in the Held for Trading category will be marked to market at monthly or atmore frequent intervals. The book value of individual securities in this category would notundergo any change after marking to market.

3.4 Accounting Procedure

Investment entries are to be passed at cost price of a Security. Where the cost price of a Security ismore than the face value (purchased at premium), the premium has to be amortized over the remainingmaturity period of the Security. On the other hand, where the cost price is less than the face value, thedifference should be ignored and should not be taken to income since the amount represents un-realized gain. Profit / Loss on sale of Investments should be treated as per the accounting principles.

3.5 Prudential Norms

Investments are classified as Performing and Non-Performing, based on the guidelines issued bythe Reserve Bank of India.

4. FIXED ASSETS:

(a) Fixed assets are stated at historical cost net of depreciation.

(b) Depreciation on fixed assets has been provided as per written down value method as under:

(i) Rates of depreciation:

� 10% on Wooden & Steel furniture items, Electrical installations etc.

� 15% on Plant & Machinery, Motor Vehicles (Car & Zeep) and Cycles

� 60% on Computers, Computer Equipment and Software

� 10% on Library

(ii) Assets having original cost less than or equal to Rs.5,000/- will be depreciated 100% leaving aresidual value of Rs.1/- only.

(iii) In respect of assets purchased during the year, depreciation is provided proportionately as perthe number of days the asset is put to use by the bank during the year.

(iv) Depreciation is calculated in furniture module of the system and the same is providedmanually in respect of Library.

5. IMPAIRMENT OF ASSETS:

The Bank assesses at each balance sheet date whether there is any indication that an asset may beimpaired. Impairment loss, if any, is provided in the Statement of Profit and Loss to the extent thecarrying amount of assets exceeds their estimated recoverable amount.

6. DEPOSITS:

The Bank provides interest at the rate applicable to SB accounts towards Interest on overdue depositsin terms of the RBI guidelines.

7. ADVANCES:

a. All advances of the Bank have been classified into Performing (Standard) and Non-Performing Assets(Sub-standard, Doubtful and Loss Assets).

b. Provision in respect of Non-Performing Assets is made as per the Prudential Norms issued byRBI/NABARD and the provisions are as under:

5050

(i) Sub-standard Assets: 15% on secured portion and 25% on unsecured portion

(ii) Doubtful Assets under D1 category: 25% on secured portion and 100% on unsecured portion

(iii) Doubtful Assets under D2 category: 40% on secured portion and 100% on unsecured portion

(iv) Doubtful Assets under D3 category and loss assets: 100%

c. Provision in respect of Non-performing Assets has been deducted from the advances.

d. A general provision on Standard Advances (Performing Assets) and floating provision on advanceshave not been deducted from advances, but are shown under the head “Other Liabilities & Provisions”in the liabilities side of the Balance Sheet.

e. Unrealized Interest on Non-Performing Assets is not recognized as income.

f. Partial recoveries in Non-Performing Assets are apportioned first to the charges & interest and thereafterto the principal.

8. EMPLOYEE BENEFITS:

8.1 Short Term Employee Benefits

The undiscounted amounts of short-term employee benefits payable wholly within twelve months ofrendering the service by employees are classified as short term and are recognized during the periodin which the employee renders the related service.

8.2 Long Term Employee Benefits

(i) Defined Contribution Plans

Government of India accorded approval for grant of pension to the employees of RRBs vide itsletter F.No. 8/20/2010-RRB dated 23.10.2018. Board vide its resolution no. 2714 dated30.10.2018 approved adoption of Chaitanya Godavari Grameena Bank (Employees’) PensionRegulations, 2018.

Contributions to the recognized provident fund and/or National Pension Scheme (NPS) shallbe made in terms of the said pension regulations.

The accounting shall be made as per the extant guidelines applicable there for, as communicatedby GoI/NABARD/Sponsor Bank from time to time.

(ii) Defined Benefit PlansEmployees’ gratuity, pension and leave encashment are defined benefit plans.

a. Gratuity:

Bank has formulated a trust and the Trustees have obtained a Group Gratuity policy with LifeInsurance Corporation of India (LIC) to cover the gratuity liability of the employees.

The present value of the Bank’s obligations under Gratuity is recognized on the basis of anactuarial valuation as at the year end and the fair value of the Plan assets is reduced from thegross obligations to recognize the obligation on a net basis.

As per the actuarial valuation given by LIC, the Bank shall make payment to the LIC. The trustshall also make investments with IndiaFirst Life Insurance Company Ltd. (IFLI) towards gratuity.

5151

b. Pension:

Government of India issued notification on CGGB (Employees’) Pension Regulations, 2018 in itsofficial gazette on 12.12.2018 and accordingly “CGGB (Employees’) Pension Fund” is constitutedby the Bank.

The contribution to the pension fund shall be in terms of the aforesaid regulations.

The accounting shall be made as per the extant guidelines applicable there for, as communicatedby GoI/NABARD/Sponsor Bank from time to time.

c. Leave Encashment:

- Encashment of earned leaves during the tenure of service on account of LFC/LTC is charged toProfit & Loss Account as and when it arises.

- Towards encashment of earned leave at the time of retirement etc., Bank is maintaining a fund withLIC of India which makes actuarial valuation and accordingly amounts are invested in the fundevery year. Funds are invested under Group Leave Encashment Scheme (GLES) with IndiaFirstLife Insurance Company Ltd. (IFLI) also.

9. ACCOUNTING STANDARD 17:

- SEGMENT REPORTING

In terms of the compliance to the accounting standard, bank has adopted the following:

(i) The business segment is considered as the only reporting format.

(ii) The business segments will be Retail Banking and Treasury only.

(iii) The allocation of expenditure among the segments will be made on a reasonable and consistentbasis.


– ACCOUNTING FOR TAXES ON INCOME

The standard is applied in accounting for taxes on income. This includes the determination of the amountof the expenses or saving related to taxes on income in determination of the amount period and thedisclosure of such an amount in the financial statement. This accounting standard provides for creation ofeither a ‘Deferred Tax Asset (DTA)’ or a ‘Deferred Tax Liability (DTL)’ in the books of accounts of the bank.

11. TAXES ON INCOME:11.1 Income tax expenses is the aggregate amount of

a. current tax provision and

b. deferred tax charge

11.2 Current tax provision is the amount of tax for the period which is determined in accordance with theprovisions of Income Tax Act, 1961 and the rules made there under.

11.3 Deferred tax charge is determined in accordance with the provisions of Income tax Act, 1961 and as perAccounting Standard 22 ‘Accounting for Taxes on Income’ issued by the Institute of Chartered Accountantsof India and is the net change in the deferred tax asset or liability during the year. Deferred income taxesreflect the impact of current year timing differences between taxable income and accounting income andreversal of timing differences of earlier years.

5252

11.4 Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at theBalance Sheet date.

11.5 Deferred tax assets are not recognized unless there is reasonable certainty that sufficient future taxableincome will be available against which such deferred tax assets will be realized.

11.6 Deferred tax assets are recognized and reassessed at each reporting date, based upon the management’sjudgment as to whether realization is considered as reasonably/virtually certain.


– INTERIM FINANCIAL REPORTING

There shall be a half-yearly review by Statutory Central Auditors (SCA) for the period ended 30th September.Such exercise of half-yearly review shall be made with major thrust on the verification of income andexpenditure items and not on balance sheet items except to the extent that such items have an impact onthe income and expenditure of the bank.

13. PROVISIONS & CONTINGENT LIABILITIES:

13.1 In conformity with AS 29 “Provisions, Contingent Liabilities and Contingent Assets” issued by the Instituteof Chartered accountants of India, the Bank shall recognize provisions only when:

a. it has a present obligation as a result of a past event,

b. it is probable that an outflow of resources embodying economic benefits will be required to settlethe obligation and

c. when a reliable estimate of the amount of the obligation can be made.

13.2 No provision is recognized for:

a. any possible obligation that arises from past events and the existence of which will be confirmedonly by the occurrence or non-occurrence of one or more uncertain future events not wholly withinthe control of the Bank; or

b. any present obligation that arises from past events but is not recognized because

i. it is not probable that an outflow of resources embodying economic benefits will be required to settlethe obligation or

ii. A reliable estimate of the amount of obligation cannot be made.

Such obligations are recorded as Contingent Liabilities. These are assessed at regular intervalsand only that part of the obligation for which an outflow of resources embodying economic benefitsis probable, is provided for, except in the extremely rare circumstances where no reliable estimatecan be made.

13.3 All unclaimed liabilities, where amount due has been transferred to Depositor Education and AwarenessFund Scheme [DEAF] of RBI are reflected as “Contingent Liability – Others, items for which the bank iscontingently liable” under Schedule 12 of the annual financial statements.

13.4 Contingent Assets are not recognized in the financial statements.

14. NET PROFIT:

The Net Profit disclosed in the Profit and Loss Account is after __

a. Provision on standard assets






53

b. Provision on loan lossesc. Provision for non-performing investmentsd. Provision for depreciation on Investmentse. Provision for taxationf. Other usual and necessary provisions

15. RELATED PARTY DISCLOSURES:a. Chairman and Chief Vigilance Officer deputed by Sponsor Bank, i.e. Andhra Bank are related parties to

the Bank. Salaries and Allowances paid to them are charged to the Profit & Loss account of the Bank.

b. The Bank is having transactions with Andhra Bank, but details are not given under this head as Paragraph9 of Accounting Standard 18 issued by The Institute of Chartered Accountants of India (ICAI) exemptsthe Bank from disclosing the transactions with Other State Controlled Enterprises.

Place : GUNTUR

Date : 08-06-2020

BOARD OF DIRECTORS







RBI


NABARD


Union Bank of India


Union Bank of India

5454

SCHEDULE - 18

NOTES FORMING PART OF THE ACCOUNTS

1. Share Capital and Share Capital Deposit Account: As per the RRB (Amendment) Act 2015, theauthorized share capital of RRBs has been raised from current level of Rs. 5 crores to Rs. 2000crores.

The ratio of 50% (Central Government), 15% (State Government) and 35% (Sponsor Bank) ismaintained after conversion of share capital deposit into share capital.Thus, the share capital of the Bank as on 31.03.2020 is as under:

Central Government : Rs. 3,72,11,000State Government : Rs. 1,11,63,300Sponsor Bank : Rs. 2,60,47,700Total : Rs. 7,44,22,000

The Sponsor Bank, i.e. Andhra Bank got amalgamated into Union Bank of India with effect from01.04.2020 and the shares of Sponsor Bank got transferred from Andhra Bank to Union Bank ofIndia accordingly.

2. Salaries & Allowances paid to Chairman and Chief Vigilance Officer deputed by Sponsor Bank,i.e., Andhra Bank were charged to Salaries & Allowances of the Bank.

3. Disclosure requirements

a. Capital

S.No. Particulars Current year Previous year

i) CRAR (%) 11.49 10.32

ii) CRAR-Tier I Capital (%) 10.65 9.63

iii) CRAR-Tier II Capital (%) 0.84 0.69

iv) Percentage of Shareholding of the

A Central Government 50% 50%

B State Government 15% 15%

C Sponsor Bank 35% 35%


5555

b. Investments (SLR Investments) (Rs.lakh)


1 Value of Investments

i) Gross Value of Investments 114196.91 113913.37

ii) Amortization 195.67 177.80

iii) Net Value of Investments 114001.24 113735.57

iv) Provision for Depreciation Nil Nil

2 Movement of provisions held towards

depreciation on investments

i) Opening Balance Nil Nil

ii) Add: Made during the Year Nil Nil

iii) Less: write off / write back during the year Nil Nil

iv) Closing Balance Nil Nil

The break-up of SLR investments is given hereunder :(Rs. Lakh)

i HTM Category : 71464.23 ii AFS Ctegory : 42537.01iii HFT Category : 0.00

Total : 114001.24

c. Repo Transactions (Rs.lakh)

Item Minimum Maximum Daily Average As on 31st

outstanding outstanding outstanding Marchduring the year during the year during the year 2020

Securities SoldNil Nil Nil Nil

under Repos

Securities PurchasedNil Nil Nil Nil

under reverse repos

5656

d. Non-SLR Investment portfolio

(i) Issuer composition of Non-SLR Investments

(Rs.lakh)

S.No. Issuer Amount Extent of Extent of below Extent of Extent of

Private investment grade unrated unlisted

Placement securities securities securities

(1) (2) (3) (4) (5) (6) (7)

i) PSUs 8551.33 Nil Nil Nil Nil

ii) Fls 1192.42 Nil Nil Nil Nil

iii) Banks 8474.60 Nil Nil Nil Nil

iv) Private Corporate 0.00 Nil Nil Nil Nil

v) Others 0.00 Nil Nil Nil Nil

Total 18218.35 Nil Nil Nil Nil

Less Provisions held

towards depreciation Nil Nil Nil Nil Nil

Total 18218.35 Nil Nil Nil Nil

(ii) Non-performing Non-SLR Investments

(Rs.lakh)

Particulars Amount

Opening balance Nil

Additions during the year since 1st April Nil

Reductions during the above period Nil

Closing balance Nil

Total provisions held Nil

4. Asset Quality :

In tune with the guidelines issued by Reserve Bank of India , the Assets of the Bank have

been classified as Performing and Non-Performing assets as on 31.03.2020 and the breakup of

non-performing assets for the last two years is furnished here under:

5757

4.1 Non-Performing Assets

(Rs.lakh)

S.No. Particulars Current Year Previous year

I Net NPA to Net Advances (%)

II Movement of NPAs (Gross)

(a) Opening balance

(b) Additions during the year

(c) Reduction during the year

(d) Closing balance

III Movement of Net NPAs

(a) Opening balance

(b) Additions during the year

(c) Reduction during the year

(d) Closing balance

IV Movement of Provisions on NPAs

(excluding provision on standard assets)

(a) Opening balance

(b) Provisions made during the year

(c) Write off/ write back of excess provision

(d) Closing balance

The opening balance of Net NPAs was NIL for the year 2018-19 as 100% provision for the NPAs was made during 2017-18.

4.2 Details of Loan Assets subject to Restructuring :

S.No. Particulars Current Year Previous year

I Total amount of loan assets subject to

restructuring, rescheduling, renegotiation Nil 120.56

II The amount of standard assets subject to

restructuring, rescheduling, renegotiation Nil 120.56

III The amount of sub-standard assets subject to

restructuring, rescheduling, renegotiation Nil Nil

IV The amount of doubtful assets subject torestructuring,rescheduling & renegotiation Nil NilNote [(I) = (II) + (III) + (IV)]

0.23

4677.11

3130.16

2156.87

5650.40

628.34

497.06

0.00

1125.40

4048.77

897.50

421.27

4525.00

0.14

3881.85

2772.03

1976.77

4677.11

0.00

628.34

0.00

628.34

4402.19

233.86

587.28

4048.77

(Rs.lakh)

5858

Interest income is recognized on performing assets on accrual basis and on non-performing assets on realization

basis as per RBI guidelines and as per the change in prudential norms for period of classification in prudential norms

from time to time.

4.3 Details of financial assets sold to Securitization (SC) / Reconstruction

Company (RC) for assets reconstruction. (Rs. lakh)


I No. of accounts Nil Nil

II Aggregate value (net of provision) of accounts

sold to SC / RC Nil Nil

III Aggregate consideration Nil Nil

IV Additional consideration realized in respect of accounts

transferred in earlier years. Nil Nil

V Aggregate gain / loss over net book value Nil Nil

4.4 Details of Non-performing assets purchased / sold

A. Details of non-performing financial assets purchased:

(Rs. lakh)


1 (a) No. of accounts purchased during the year Nil Nil

(b) Aggregate outstanding Nil Nil

2 (a) Of these, number of accounts restructured during the year Nil Nil

(b) Aggregate outstanding Nil Nil

B. Details of non-performing financial assets sold:

(Rs. lakh)


1 No. of accounts sold Nil Nil

2 Aggregate outstanding Nil Nil

3 Aggregate consideration received Nil Nil

8.86

0.83

1.85

0.99

Rs.920.05 lakhs

Rs.6.82 lakhs

8.72

0.86

1.81

0.94

Rs.971.41 lakhs

Rs.6.65 lakhs

5959

4.5 Provisions on standard assets: The Bank has made adequate provision on standard assets as per guidelines

of the Reserve Bank of India. The details of provision made on standard assets are furnished here under :

(Rs. lakh)

Particulars Current year Previous year

Provisions towards standard assets 1443.50 1402.76

5. Business Ratios (Amount Rs. lakh)


I Interest Income as a percentage to Working Funds $

II Non-interest income as a percentage to Working Funds $

III Operating Profit as a percentage to Working Funds $

IV Net Margin (RoA) @

V Business (Deposits plus Advances ) per employee #

VI Profit per employee (Net profit)

$ Working funds reckoned as aggregate of balance sheet items excluding (a) Contra items (b) Intangible

Assets (c) Fixed Assets (d) Branch Adjustment (e) Stationery and Stamps and monthly averages are taken

Operating profit excludes income from sale of assets as well as transfer from reserves and provisions, gifts and

donations

@ net margin worked out as a ratio of net profit after tax to the average working funds

# Business per employee was computed by adding deposits & advances excluding inter-bank deposits

6. Asset Liability Management [ALM]

Maturity pattern of certain items of Assets and Liabilities as on 31-03-2020

1-14 15-28 29 days- 3-6 6-12 1-3 3-5 Over 5 Total

days days 3 months Months months years years years

LIABILITIES

Deposits 16016.30 11629.60 40889.84 63208.32 163906.00 235076.49 2979.21 4265.58 537971.34

Borrowings 46.52 0.00 57.83 25957.72 74804.27 48026.43 26059.04 1275.90 176227.71

Inter Bank

Participation

Certificate 0.00 0.00 35000.00 0.00 0.00 0.00 0.00 0.00 35000.00

ASSETSInvestments 0.00 0.00 16615.60 9751.39 0.00 23082.81 16821.62 65948.17 132219.59

ADVANCES

(Performing) 41530.91 5220.89 52712.55 104804.85 121399.01 38142.23 128807.89 40399.73 533018.06

(Rs. lakh)

6060

7. Exposures – Exposure to Real Estate Sector

S.No. Category Current year Previous year

A Direct exposure :

(i) Residential mortgages-Lending fully secured

by mortgages on residential property that is or will be

occupied by the borrower or that is rented

- individual housing loan up to Rs.20 lakh 28223.81 25073.72

- above Rs. 20 lakh 5670.52 5054.07

(ii) Commercial Real Estate

Lending secured by mortgages on commercial

real estates (office buildings, retail space,

multi-purpose commercial premises,

multi-family residential buildings, 4819.24 5046.97

multi-tenanted commercial premises, industrial

or warehouse space, hotels, land acquisition,

development and construction etc.) Exposure

would also include non-fund based (NFB) limits.

(iii) Investments in Mortgage Backed Securities (MBS)

and other securitised exposuresNil Nil

a.) Residential Nil Nil

b.) Commercial Real Estate Nil Nil

B Indirect exposure :

Fund-based and non-fund based exposures onNil NilNational Housing Bank (NHB) and Housing

Finance Companies (HFCs)

8. Details of Single Borrower (SGL) / Group Borrower Limit (GBL) exceeded by the Bank

There are no sanctions over and above the prudential exposure norms applicable to single borrower and group

borrowers during the year 2019-20. There are no outstanding over and above the prudential exposure norms

applicable to single borrower and group borrowers.

(Rs. lakh)

6161

9. Miscellaneous – Amount of provisions made for Income-tax during the year

(Rs. lakh)


1 Provision for Income Tax 4795.75 5048.09

The above provisions are made on the basis of estimates and the provision for the current year included the

amount of income tax paid of Rs.203.88 lakh under "Vivad Se Viswas Scheme" of Income Tax Department

pertaining to Assessment Years 2012-13 and 2013-14. The income tax pertained to the previous financial year

2018-19 is charged to Income Tax Account to the extent of Rs. 107.87 lakh during the current year.

However, the estimate of provision for income tax for the current year stood at Rs.4484.00 lakh only.

10. Disclosure of Penalties Imposed by RBI

During the year ended with March 2020, no penalty has been levied by RBI.

11. Disclosure Requirements as per Accounting Standards where the RBI has issued guidelines in respect

of disclosure items for ‘Notes to Accounts’:

11.1 Accounting Standard 5 – Net Profit or Loss for the period, prior period items and changes in Accounting

Policies

There are no material prior period income/expenditure accounted for during the year.

11.2 Accounting Standard 9 – Revenue Recognition

There has been no occasion of postponing Revenue Recognition pending resolution of significant uncertainties.

11.3 Accounting Standard 15 – Employee Benefits

Short Term Employee Benefits

The undisclosed amounts of short-term employee benefits payable wholly within twelve months of rendering

the service by employees are classified as short term and are recognized during the period in which the employee

renders the related service.

6262

Long Term Employee Benefits

(i) Defined Contribution Plans

Government of India accorded approval for grant of pension to the employees of RRBs vide its letter F.No. 8/

20/2010-RRB dated 23.10.2018. Board vide its resolution no. 2714 dated 30.10.2018 approved adoption of

Chaitanya Godavari Grameena Bank (Employees’) Pension Regulations, 2018.

Contributions to the recognized provident fund and/or National Pension Scheme (NPS) shall be made in terms

of the said pension regulations.

The accounting shall be made as per the extant guidelines applicable there for, as communicated by GoI/

NABARD/Sponsor Bank from time to time.

(ii) Defined Benefit Plans

Employees’ gratuity, pension and leave encashment are defined benefit plans.

a. Gratuity :

Bank has formulated a trust and the Trustees have obtained a Group Gratuity policy with Life Insurance

Corporation of India (LIC) to cover the gratuity liability of the employees.

The present value of the Bank’s obligations under Gratuity is recognized on the basis of an actuarial valuation

as at the year end and the fair value of the Plan assets is reduced from the gross obligations to recognize the

obligation on a net basis.

As per the actuarial valuation given by LIC, the Bank shall make payment to the LIC. The trust shall also make

investments with India First Life Insurance Company Ltd. (IFLIC) towards gratuity.

b. Pension:

Government of India issued notification on CGGB (Employees’) Pension Regulations, 2018 in its official gazette

on 12.12.2018 and accordingly “CGGB (Employees’) Pension Fund” is constituted by the Bank.

The contribution to the pension fund shall be in terms of the aforesaid regulations.

The accounting shall be made as per the extant guidelines applicable there for, as communicated by GoI/

NABARD/Sponsor Bank from time to time.

c. Leave Encashment:

- Encashment of earned leaves during the tenure of service on account of LFC/LTC is charged to Profit & Loss

Account as and when it arises.

- Towards encashment of earned leave at the time of retirement etc., Bank is maintaining a fund with LIC of India

which makes actuarial valuation and accordingly amounts are invested in the fund every year. Funds are

invested under Group Leave Encashment Scheme (GLES) with IndiaFirst Life Insurance Company Ltd. (IFLIC)

also.

6363

11.4 Accounting Standard 17 - Segment Reporting

Part A: Business Segment Revenue

SEGMENT WISE RESULTS

(Rs. lakh)

S.No. Business Segments for the year ended for the year ended

31.03.2020 31.03.2019

1. Segment Revenue

A Treasury

B Corporate / Wholesale Banking

C Retail Banking

D Other Banking Operations

Total

less Inter-segment Revenue

Income from Operations

2. Segment Results After Provisions & Before Tax

A Treasury


C Retail Banking


Total

Less other unallocable expenditure

Total Profit before Tax

3. Capital Employed

(Segment Assets – Liabilities)

A Treasury


C Retail Banking


E Unallocable Liabilities

Total

Capital & Reserves

10207.34

-

61728.60

-

71935.94

-

71935.94

1632.64

-

9873.34

-

11505.98

-

11505.98

132219.59

-

(-)215055.59

-

133320.47

50484.47

50484.47

7846.86

-

56989.74

-

64836.60

-

64836.60

1373.62

-

9978.58

-

11352.20

-

11352.20

133267.77

-

(-)173358.74

-

83511.21

43420.24

43420.24

6464

Part B: Geographic Segments

There is only one segment i.e. Domestic Segment.

11.5 Accounting Standard 22- Accounting for Taxes on Income

During the year a sum of Rs.50.00 crore was paid towards advance tax.

11.6 Accounting Standard 25 – Interim Financial Reporting

Half-yearly review by Statutory Central Auditors (SCA) is being undertaken every year for the half-year ended

30th September

12. Contingent liabilities not provided for in respect of bank guarantees :Rs. Nil

13. During the year the Bank has appropriated an amount of Rs.1414.00 lakh (previous year Rs.1330.00 lakh) to

Statutory Reserves, being 20% of its profits earned during the current year, as per the NABARD guidelines.The Bank further apportioned an amount of Rs.4863.23 lakh (Previous year Rs.4925.79 lakh) to General

Reserves. Further, Investment Fluctuation Reserve was created by the Bank during the previous year 2018-19 and Rs.787.00 lakh was transferred to the same this year, before apportioning to General Reserves.

14. Loans & Advances extended to Bank Staff outstanding as on 31.03.2020 is Rs.7899.75 lakh

15. Additional Disclosures

15.1 Accounting Standard 29: Provisions and Contingencies (Rs. lakh)

S.No. Particulars Current Year Previous Year

A Opening balance in the floating provisions account 1250.00 1250.00

B The quantum of floating provisions made in the accounting year Nil Nil

C Amount of draw down made during the accounting year Nil Nil

D Closing balance in the floating provisions account 1250.00 1250.00

15.2 Pursuant to RBI guidelines, the Bank has made a provision of Rs.86,89,020/- (previous year Rs.1,27,89,967)

in respect of interest on matured deposits as per Savings Bank interest rate.

15.3 The Bank has not drawn any amount from General Reserves.

15.4 Disclosure of Complaints (including ATM related complaints)

A. Customer Complaints

S.No. Particulars General ATM related Total

A No. of complaints pending at the beginning of the year 0 06 06

B No. of complaints received during the year 17 8177 8194

C No. of complaints redressed during the year 17 8171 8188

D No. of complaints pending at the end of the year 0 12 12

6565

B. Award passed by the Banking Ombudsman

S.No. Particulars Details

A No.of unimplemented Awards at the beginning of the year NIL

B No.of Awards passed by the Banking Ombudsman during the year NIL

C No.of Awards implemented during the year NIL

D No.of unimplemented Awards at the end of the year NIL

16. Advances: The Bank has made 80.08% (previous year 86.56%) provision on total Non-performing Assets as

on 31-03-2020 amounting to Rs.5650.40 lakh (previous year Rs.4677.11 lakh). The advances shown in the

balance sheet are netted of NPA Provision of Rs.4525.00 lakh.

17. Inter Bank Participation Certificate (IBPC) : The Bank has issued Inter Bank Participation Certificate of

Rs.350.00 crore to Axis Bank Ltd. by selling Priority Sector Advances during the current year. Accordingly, the

Advances shown in the balance sheet are netted of IBPC of Rs.350.00 crore.

18. Suit Filed Accounts:The suit filed advance accounts as on 31.03.2020 are as under:

No of accounts : 186

Amount :Rs. 6.86 lakh

19. Bank Guarantees : 32 Bank Guarantees of Rs.162.71 lakh are expired ones as on 31.03.2020 as against the

total outstanding under BGs of Rs.1518.03 lakh.

20. Employee Benefits :

i) Bank made payment of Rs.126.83 lakh to LIC of India and Rs.400.00 lakh to India First Life Insurance Co.

Ltd. (IFLIC) towards Group Gratuity, as per the actuarial valuation, during the current financial year.

ii) Bank made payment of Rs.154.05 lakh to LIC of India, Rs.200.00 lakh to IFLIC towards Group Leave

Encashment Scheme (GLES), during the current financial year.

iii) Pension Fund for payment of pension to employees in terms of the CGGB (Employees’) Pension Regulations,

2018 (as notified in the official gazette by Government of India on 12.12.2018) is created and Rs.14817.00 lakh

was provided for in Schedule 11 of the balance sheet as on 31.03.2019. Rs.3052.00 lakh was accounted for

during the previous year, i.e. 2018-19 and Rs 2874.80 lakh is accounted for during the current year, i.e. 2019-

20. This amortization of pension liability for a period of five years commencing from the year 2018-19 is in

accordance with the guidelines issued by NABARD in this regard.

iv) Thus the Pension Fund stood at Rs.8890.20 lakh as on 31.03.2020.

v) Bank appointed LIC of India as Fund Manager for the pension fund and made entire fund payment of

Rs.11257.00 lakh to it during the current financial year.

vi) Bank also made contributions of Rs. 78.39 lakh through Stock Holding Corporation of India Ltd., the Fund

Manager for NPS, to NSDL in respect of the employees covered under NPS.

21. Related Party Disclosures : During the year, the Bank paid an amount of Rs.16,77,446 to Chairman and

Rs.13,82,664 to Chief Vigilance Officer, towards salary and allowances, who are on deputation from Sponsor

Bank, i.e. Andhra Bank.

22. The Depositor Education and Awareness Fund [DEAF] Scheme 2014:

The details of amounts transferred to DEAF are disclosed as under:

( Rs. crore) Particulars Current Year Previous Year

Opening balance of amounts transferred to DEAF 1.36 1.27

Add : Amounts transferred to DEAF during the year 0.09 0.09

Less : Amounts reimbursed by DEAF towards claims 0.00 0.00

Closing balance of amounts transferred to DEAF 1.45 1.36

23. Disclosure on COVID -19 Regulatory Package - Asset Classification and Provisioning:(i) Amount in overdue category :Term Loans and Other Accounts :No. of Accounts: 515 – Amount : Rs. 61518 (‘000)OD/CC accounts :No. of Accounts: 13 – Amount : Rs. 3498 (‘000)Total Eligible : No. of Accounts : 528 – Amount : Rs. 65016 (‘000)(ii) Asset Classification Benefit Extended:No. of Accounts: 528 – Amount : Rs. 65016 (‘000)(iii) Provision Made during Q4FY2020 @5% of the outstanding amount : Rs. 3260 (‘000)

24. Impact of COVID-19 Pandemic:

The outbreak of COVID-19 Pandemic across the globe has contributed to a significant decline and volatility in theGlobal and Indian Financial Markets and slowdown in the economic activities. The Bank’s business is expected to

be impacted by lower lending opportunities and revenues in the short to medium term. The Bank’s capital andliquidity position is strong and would continue to be the focus area of the Bank during this period.

The RBI on March 27th, 2020 and April 17th, 2020, announced ‘COVID-19 Regulatory Package’ on asset

classification and provisioning. In terms of the RBI guidelines, the lending institutions have been permitted to granta moratorium of three months on payment of all instalment/interest as applicable, falling due between March 1st,

2020 and May 31st, 2020 (‘Moratorium Period’). As such, in respect of all accounts classified as standard as onFebruary 29th, 2020, even if overdue, the moratorium period, wherever granted, shall be excluded by the lending

institutions from the number of past days-due for the purpose of asset classification under RBI’s Income Recognition

and Asset Classification norms.At March 31st,2020, the Bank has made COVID-19 relate provision of Rs.3260(‘000s), in line with the requirement

as per RBI guidelines dated April 17th, 2020.The provisions held by the Bank are in excess of the RBI prescribed norms.The extent to which the COVID-19 Pandemic will impact the Bank’s provision of assets and future results willdepend on future developments, which are highly uncertain, including, among other things, any new information

6666

6767

OutstandingTotal

Advances

GrossNPAs

Percentage ofGross NPAs toTotal Advancesin that sector

OutstandingTotal

Advances

GrossNPAs

Percentage ofGross NPAs toTotal Advancesin that sector

concerning the severity of the COVID-19 Pandemic and any action to contain its spread or mitigate its impact whethergovernment-mandated or elected by the Bank. Given the uncertainty over the potential macro-economic condition,the impact of the global health pandemic may be different from that estimated as at the date of approval of thesefinancial results and the Bank will continue to closely monitor any material changes to future economic conditions.

25.Concentration of Deposits, Advances, Exposures and NPAs: (Amount Rs. crore)

Concentration of Deposits

Total deposits of twenty largest depositors 788.69

Percentage of deposits of twenty largest depositors to total deposits of the bank 14.66

Concentration of Advances

Total advances of twenty largest borrowers 54.71

Percentage of advances to twenty largest borrowers to total advances of the bank 1.09

Concentration of Exposures

Total exposures of twenty largest borrowers/customers 227.62

Percentage of exposures to twenty largest borrowers/customers to total

exposure of the bank on borrowers / customers 3.39

Concentration of NPAs

Total exposure of top four NPA accounts 1.68

26.Sector-wise NPAs:

Sector Current Year Previous Year

A Priority Sector

1 Agriculture and allied activities 2812.69 29.84 1.06 3062.06 23.85 0.77

2 Advances to industries sector eligibleas priority sector lending 6.43 0.02 0.26 6.42 0.14 2.18

3 Services 215.51 17.78 8.25 268.43 15.90 5.92

4 Personal loans 1701.66 4.30 0.25 992.52 3.65 0.36

5 Sub-total (A) 4736.29 51.94 1.10 4329.43 43.54 1.01

B Non-Priority Sector

1 Agriculture and allied activities - - - - - -

2 Industry - - - - - -

3 Services - - - - - -

4 Personal loans 300.39 4.57 1.52 293.30 3.23 1.10

5 Sub-total (B) 300.39 4.57 1.52 293.30 3.23 1.10

Total (A+B) 5036.68 56.50 1.12 4622.73 46.77 1.01

(Amount Rs. crore)S.

No.

6868

27.Movement of NPAs:

Particulars (Amount Rs. crore)

Gross NPAs as on 01.04.2019 (Opening balance) 46.77

Additions (Fresh NPAs) during the year 31.30

Sub-total (A) 78.07

Less:

(i) Up gradations 2.64

(ii) Recoveries (excluding recoveries made from up graded accounts) 14.64

(iii) Write-offs 4.29

Sub-total (B) 21.57

Gross NPAs as on 31.03.2020 (Closing balance) (A-B) 56.50

69

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2020

Rs.‘000

Particulars For the year ended For the year ended

31.03.2020 31.03.2019

Opening balance of Cash and Cash equivalents 7520044 7384209

Closing balance of Cash and Cash equivalents 11055304 7520044

Net Increase (+)/Decrease (-) of Cash and Cash equivalents3535260 135835

during the period

Cash Flow from Operating Activities :

Net Profit before Tax 1150598 1135220

Add: Depreciation on Assets 36353 53711

Less: Profit on Sale of Assets 80 7

Operating Profit before changes in Operating Assets and Liabilities 1186871 1188924

Adjustment for Changes in Operating Assets and Liabilities :

Increase/(Decrease) in Deposits 9219446 5510461

Increase/(Decrease) in Borrowings (-) 958041 6355330

(Increase)/Decrease in Investments 104818 (-) 3432740

(Increase)/Decrease in Advances (-) 4091720 (-) 8818170

(Increase) /Decrease in Other Assets 260706 (-) 1984174

Increase /(Decrease) in Other Liabilities and Provisions (-) 1711815 1833890

Cash Generated from Operations 2823394 (-) 535403

Taxes Paid (-) 444175 (-) 470244

Cash Flow from Operating Activities (A) 3566090 183277

Cash Flow from Investing Activities:

(Purchase)/Sale of Fixed assets (-) 30830 (-) 47442

Cash Flow from Investing Activities (B) (-) 30830 (-) 47442

Net Increase (+)/Decrease (-) in Cash flow during the period (A)+(B) 3535260 135835

7070






Place : GUNTUR

Date : 08-06-2020

BOARD OF DIRECTORS







RBI


NABARD


Union Bank of India


Union Bank of India

IBA Banking Technology Awards 2020 :Joint Runner up under “Best Digital Financial Inclusion Initiatives”

& Certificate of Appreciation under “Best Technology Bank of the Year”

Documents

(A Government Undertaking Sponsored By Union Bank of India) · 2020. 9. 18. · Bank sponsored by Andhra Bank into a single Regional Rural Bank with its Head Office at Guntur, Andhra