(A Government Undertaking Sponsored By Union Bank of India)...M/s M.Bhaskara Reddy &Co. Chartered Accountants, Guntur M/s Rao & Sharma Chartered Accountants, Bhimavaram M/s Vasireddy

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)

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

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. ManagerMs. 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.

17

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.

18

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

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

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 prevailin

Documents

(A Government Undertaking Sponsored By Union Bank of India)...M/s M.Bhaskara Reddy &Co. Chartered Accountants, Guntur M/s Rao & Sharma Chartered Accountants, Bhimavaram M/s Vasireddy