Growth in Deposits Report 2015-16.pdf · V. Narasi Reddy Andhra Pradesh Grameena Vikas Bank Head Office, Warangal - 506 001 we are with you! Annual Report 2015-16 01. Vision Mission

23.21%Growth in Deposits

2 15-16

23.21%Growth in Deposits

16.94%Growth in Advances

Rs 223 Cr.Net Profit

Rs 1304 CrReserves

2.38%Gross NPAs reduced from 3.3%

13.48%CRAR

Committed for RejuvenatingRural Economy

we are with you!

th11 Annual Report 2015-16

Empowering Rural Lives

Chairman

With Best Compliments from

V. Narasi Reddy

Andhra Pradesh Grameena Vikas Bank

Head Office, Warangal - 506 001

we are with you! Annual Report 2015-16

01

Vision

Mission

Values

Repositioning the Bank in competitive rural market and accomplish the leadership spot in Rural Banking. Aspiring to realize

the vision of excelling in Rural Credit and SME. Pursuing the best practices for delivering the value added service to the

customers by transforming the key branches into profit and business centers.

With efficiency and service each one of us works in tandem to deliver quality rural service, no matter where our customers

choose to experience it. With the advantage of a large network in the rural hinterland, it is our duty and obligation to serve the

rural masses, the deprived and denied, retail and agriculture sectors through improved processes, deployment of technology,

with an emphasis on employment of rural youth, augmentation of agricultural production, upliftment of the downtrodden and

unabated service to rural poor with commitment to the sacred task of rural development and women's empowerment.

· Commitment for rural development

· Excellence in customer service

· Respect to systems and procedures

· Team Synergy

Vision, Mission and Values

02



Head Office : Warangal

Date: 30.06.2016

The Secretary,

Ministry of Finance, Dept. of Economic Affairs,

Banking Division, Government of India,

Parliament Street,

New Delhi-110001

Dear Sir,

In accordance with the provisions of Section 20 of the Regional Rural Banks Act 1976, I forward herewith

the following documents.

stA Report of Board of Directors as to the Bank's working and its activities during the period 1 April 2015 to st31 March 2016.

stA copy of the audited Balance Sheet and Profit and Loss Account for the year ended 31 March 2016.

stA copy of the Auditor's report in relation to the Bank's accounts for the period 1 April 2015 to st31 March 2016.

Letter of Transmittal

Yours faithfully,

(V. Narasi Reddy)Chairman

03


What's inside

1. Board of Directors 06

2. Executives Team 07

3. Chairman's Message 10

4. Key Performance Indicators 16

5. Board of Directors Report 19

6. Auditor's Report 57

7. Balance Sheet, Profit & Loss 59

Account and Schedules

S.No. Particulars Page No.

04


Geographical Area & Regional Offices

SrikakulamSaraswathi Complex, Baker sahed petaSrikakulam 532001, Tel 08942-221041, Fax [email protected]

Vizianagaram8-12-64/1, Himagiri Theatre, New S.P. BungalowVizianagaram 536002, Tel 08922-273956, Fax [email protected]

Visakhapatnam52-14-77/1, APHSC Building,Near Eenadu office, SeethammadharaVisakhapatnamTel 0891-2713942, Fax [email protected]

ParvathipuramVizianagaram Dist. 1435-27-112, Ist Floor, By Pass Road, Opp. Sai Ram CollegeTel : [email protected]

KhammamWyra Road, Khammam 507001Tel 08742-226816, Fax [email protected]

NalgondaRamgiri, Nalgonda 508001Tel 08682-229943, Fax [email protected]

Regions in Telangana State

WarangalABK Mall,Ramnagar, HanamkondaWarangal 506001Tel 0870-2577884Fax [email protected]

Mahabubnagar8-3-3/5/F, MettugaddaMahabubnagar 509001Tel 08542-242861Fax [email protected]

SangareddyMedak 502001Tel 08455-276263Fax [email protected]

AshoknagarRamachandrapuram MandalMedak 502032Tel 040-20040773Fax [email protected]

BhadrachalamBhadrachalamKhammam 507111Tel 08743-231492Fax [email protected]

Regions in Andhra Pradesh

05


BOARD OF DIRECTORS

Shri V. Narasi ReddyChairman(General Manager on deputation from State Bank of India)

Nominees of Central Government under Section 9 (1) (a) of the Regional Rural Bank's Act, 1976

Shri C. Laxmunnaidu

Shri V. Hanumantha Reddy

Nominee of Reserve Bank of India under Section 9 (1) (b) of the Regional Rural Bank's Act 1976

Shri S. Chellapandi Asst. General Manager, Reserve Bank of India, Hyderabad

Nominee of NABARD under section 9 (1) (c) of the Regional Rural Bank's Act, 1976.

Shri V.S. Gupta, Deputy. General ManagerNABARD, TSRO, Hyderabad

Nominees of State Bank of India under Section 9 (1) (d) of the Regional Rural Bank's Act, 1976

Shri T.V. ReddyDeputy General Manager (ABU) State Bank of India, LHO, Hyderabad

Regional Manager, State Bank of India, Regional Business Office, Warangal

Shri K.V. Maruthi Rao

Nominees of State Government under Section 9 (1) (e) of Regional Rural Bank's Act, 1976

Smt K. Suntha, IASPrinciple Secretary, Institutional Finance, Finance Department, GOAP, Hyderabad Smt V. Karuna, IAS

District Collector & Magistrate, Warangal

06


Executive Team

V. Narasi ReddyChairman

Shri T.V. Krishna ReddyGeneral Manager -II

Shri Y.N. SukumarGeneral Manager-I

Shri S. Prakash KumarGeneral Manager - III

07


Our Mentors

Shri Hardayal PrasadChief General Manager,

State Bank of India, LHO, Hyderabad

Our Regulators

Shri R.N. DashRegional Director,

Reserve Bank of India, Hyderabad

Shri V.V.V. SatyanarayanaChief General Manager,

NABARD, RO, Telangana, Hyderabad

Shri Harish JavaChief General Manager,

NABARD, RO, AP, Hyderabad

08


Shri Giridhara KiniGeneral Manager (NW-I),

State Bank of India, LHO, Hyderabad

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Deposits and Advances have crossed Rs 10000 Crore level each while total Business crossed Rs 20000 Crore mark.

Growth in Business Rs 3458.26 Crore (19.94%) (Rs 2658.98 Cr)

Growth in Deposits Rs 1922.11 Cr (23.21%) (Rs 1488.82 Cr)

Growth in Advances Rs 1536.15 Cr (16.94 %) (Rs 1170.19 Cr)

Net profit Rs 223.47 Crore (10.84%) (Rs 201.61 Crore)

Gross NPAs reduced from 3.30% to 2.38%

Net NPAs reduced from 2.48% to 1.40%.

The share of CASA has increased from 35.95%(31.03.2015) to 36.60% as on 31.03.2016 and surpassed the budget.

Cost of deposits which was on constant rise ever since 2011-12, started declining from 7.83% (31.03.2015) to 7.62% as on 31.03.2016.

Miscellaneous/other Income went up by 61.41%.

Agriculture Credit outstanding at Rs 4278.79 Crore (Rs 3637.32 Cr). Disbursed Rs 4052.60 Crore (Rs 2779.99 Crore)

Agriculture borrowers increased to 786306 during the year from 721132

Total No. of SHGs financed reached 184440 (176281) with outstanding credit of Rs 3984.69 Crore (Rs 3403.31 Cr). Disbursed Rs.

2773.82 Crore (Rs 2112.87 Cr) to 164382 Groups (139829 Groups).

Business per Branch Rs 27.70 Cr (Rs 23.82 Cr)

Business per Employee Rs 7.05 Cr ( Rs 6.10 Cr)

Net Profit per Employee Rs 7.57 Lakh (Rs 7.09 Lakh)

Opened 23 New Branches taking total to 751 (inaugurated online by CGM, SBI, LHO, Hyd)

Installed Bank’s own ATM in two of our Branches besides introducing Mobile ATM.

Implemented AEPS, Bio-metric authentication System in CBS, NACH, Interoperability of PMJDY Cards in other Bank’s Bank Mitras, IMPS,

Enabling our RuPay ATM Cards at PoS machines with merchants;

No. of transactions carried out by Bank Mitras during the year went up by 66%.

Total amount involved in BC transactions has gone up by 44%

Zero balance accounts maintained by BCs, has come down from 74.60% during previous FY to 32.16% during the year

No. of transactions carried out through Alternate Delivery Channels has increased to 19.3% from last year’s share of 8.1%.

Aadhar numbers have been seeded on to 18,53,871 Accounts as on 31.3.2016.

DBT through ABPS (Aadhar Payment Bridge System) 2591376 customers received LPG subsidy amounting to Rs 64.64 Crore.

PMJDY – opened 14,84,414 Basic Savings Bank Deposit Accounts as on 31.3.2016, of which 793627 accounts were provided with RuPay

Cards.

Stood first in Cross Selling (SBI Life)- Mobilized Rs 14.67 Cr business premium and Rs 2.00 Cr commission against the targets of Rs 10 Cr

& Rs 1 Cr respectively

Secured ASSOCHAM Social Banking Excellence Award for the Bank under Rural Banking category for 2015.

Bagged Special Award in recognition and appreciation of highest number of transactions in National Financial Switch (NFS) ATM

Network under the category of RRBs from NPCI.

Highlights 2015-16

Note : (Figures in brackets pertain to previous FY)

09


Land mark performance

Our Business has grown by Rs 3458.26 Crore at 19.94% to reach Rs 20803.89 Crore, a significant achievement of Rs 20000 Crore business mark during the year. This has also taken our deposits and advances past Rs 10000 Crore level each. Net Profit increased to Rs 223.47 Crore during the year at a growth of 10.84%, inspite of upsurge in Salary expenditure by Rs 88 Crore on account of X Bipartite Wage revision.

Our Bank has surpassed the MoU targets set by our Sponsor Bank under major parameters, by registering Rs 10202.12 Crore deposits (23.21%) and Rs 10601.77 Crore advances (16.94%).

Non Performing Assets were reduced both in absolute terms and in percentage – from Rs 299.03 Crore (3.30%) to Rs 251.99 Crore (2.38%).

CASA which has been on a declining trend, has changed its course during the year. 25.43% growth in CASA outperformed the growth rate of 21.97% registered by Term deposits. The share of CASA has also increased from 35.95% to 36.60%. Strong marketing strategies and

Chairman’s Message

technology platform created have led to this improvement during the year.

Treasury operations, which yielded an income of Rs 29 Crore during the year, was another significant area the Bank has focused more during the year. Regional Rural Banks depend on their Sponsor Bank for treasury operations for our SLR requirements. We are however using our own expertise to offload the securities under AFS at opportune time for making money.

As the business grows and number of employees increases, it is necessary to sustain it for further growth. Technology is overtaking human intervention in most part of the operations and some portion of the banking transactions is taking the way of alternative delivery channels including outsiders (Bank Mitras) handling business on behalf of the bank leveraging technology. Unlike in big banks, technology here is not happening as a luxury or trendy feature to attract new x generation customers but as a means to reach the illiterate rural population, most of whom would have never visited a bank branch.

Multi dimensional transformation

V. Narasi ReddyChairman

It gives me immense pleasure to share that 2015-16 was a tremendous year for our Bank. We excelled in all business parameters including profitability. Our clear and strategic focus on achieving quality standards in assets and liabilities, such as data purification, compliance, internal processes, Financial Inclusion etc., and the response and dedication of all staff members, lent credence to the business growth that outperformed the industry levels.

10


Yours sincerely,

(V. Narasi Reddy)

Chairman

With continuous retirements, Staff profile has changed

dramatically in recent years. This year the ratio of newly

recruited staff with four to five years of experience has

increased to 60%. The Bank has reached a stage where

the administrative posts at various levels had to be filled up

with newly recruited officers with moderate experience. It

is important to sensitize them to the challenges of rural

banking.

Augmenting the administrative structure and overhauling

the existing systems and practices were taken up during

the year to give a safe passage to the transformation that is

happening. Roles, responsibilities, accountability,

empowerment, rights have been drilled into the system

and entities at various levels of administration. A tree

structure has been designed and put in place throughout

the administrative hierarchy where everybody supports the

system and holds responsibility to help the system on right

path. This is not only creating a sound business model

resulting in superior performance but also making them

feel part of the organisation's success.

We live at a time where how we are doing is much more

focused than what we are doing. Technology is sweeping

the entire landscape impacting the lives of literate and

illiterate, rich and poor, aware and ignorant, urban and

rural. Failing to be part of the movement or even

involuntary exclusion from this phenomenon means

losing the playground and fading away.

It is a matter of pride that we made decent strides in

embracing the technology driven products / services. This

is changing the way we operate radically, on par with any

commercial bank. The significant IT initiatives introduced

during this year include AEPS, e-KYC, IMPS, NACH,

Mobile ATM, setting up of our own ATM, 100% Biometric

Authentication System etc. RuPay Cards issued by us have

percolated into the system well and the number of hits has

increased considerably. NPCI has indeed presented a

Special Award to our Bank in appreciation and

recognition for highest transaction volume among RRBs in

NFS ATM network. This has indeed boosted our

confidence levels in pushing through the new IT initiatives.

Most noteworthy feature during this year is consolidation

and streamlining of Bank Mitra activities. A detailed

reporting system has been designed and put in place

which enables each level of the administration to know the

activities and performance or non performance of the

Bank Mitras – Bank Mitra wise, branch wise, Region wise

and bank wise. Monitoring has been strengthened

Technology

through adequate staffing at strategic points and

continuous review through audio conference.

With these initiatives, there was significant shift of banking

transactions from a formal branch banking to alternative

delivery modes, thanks to NPCI which is creating huge

platforms using latest technologies for retail payments.

The future lies in moving away from formal branch

banking and extend banking services. RBI has issued

permission to launch Mobile and Internet Banking

facilities. We are making arrangements to take this

facility to the customers in a big way in the next financial

year.

During this year, the media has focused on our

achievements very well, thereby taking our Bank's name

and activities deep into the public. The Mobile ATM

launched by us has attracted huge media attention and TV

channels ran stories on this new initiative. I am thankful to

the press for ever.

During the year, we had the fortune of having the Chief

General Manager of State Bank of India, Local Head

Office, Hyderabad Shri Hardayal Prasad twice in our

premises. His encouraging words on our business

achievements, particularly reduction of NPAs and

maintaining asset quality has been of great motivation.

We will continue to achieve newer milestones.

Media focus on our Bank

11


12


Deposits Advances Business

(Rs in Crores)

ProfitProfit

0

50

100

150

200

250

300

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2015-16

37

69

103 108 120

159180

223

(Rs in Crores)

2013-14

2014-15

2005-06

202

1237

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-140

2000

4000

6000

8000

10000

12000

14000

16000

2188

1813

4001

2718

2095

4813

2934

2701

5635

3394

3304

6698

3805 38

7076

75

4795 48

9496

89

5133 55

3310

686

5869

6590

1245

9

6791

7895

1468

7

2014-15

8280 90

6617

346

18000

20000Business Business

2015-16

1020

210

602

2080

4

25000

0

200

400

600

800

1000

1200

2007-08

2008-09

2009-102010-11

2011-12

2012-13

2014-15

2015-16

152221

311419

539

698

879

1080

ReservesReserves (Rs in Crores)

2013-14

1400 1304

0

100

200

300

400

500

600

2005-06

2006-07

2007-082008-09

2009-10

2010-11

2012-13

2013-14

No. of BranchesNo. of Branches

2011-12

700

800

2014-15

2015-16

483 483 483527 538 553

574638

704728 751

13


0

5

10

15

20

25

30

Per Branch ProfitPer Branch Profit

4.772.44

7.65

13.14

19.14 19.5320.91

24.9225.64

Per Emp ProfitPer Emp Profit

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-140

5

10

15

20

25

Per Branch BusinessPer Branch Business

8.28 9.9611.67 12.7

14.26

17.52 18.6

19.5320.86

2005

-06

0

1

2

3

4

5

6

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2013

-14

1.76

2.132.54

3.10

3.49

4.334.54

5.025.34

Per Emp BusinessPer Emp Business

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-140

500

1000

1500

2000

25002277 2262 2215 2160 2202 2236 2354 2477

27433000

No. of StaffNo. of Staff

2843

2014-15

30

2014

-15

23.827

6.10

2014

-15

27.69

0.52

1.67

3.21

4.684.83

5.08

6.48 6.577.09

3500

2015-16

2951

2015

-16

27.78

2015

-16

2012

-13

7.05

35

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

29.75

2005

-06

0

1

2

3

4

5

6

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2013

-14

7

2014

-15

8

2015

-16

2012

-13

1.01

7.57

(Rs in Crores) (Rs in Crores)

(Rs in Lakhs) (Rs in Lakhs)

AWARDSAPGVB gets Best IT Enabled Bank Award from IDRBT, Hyderabad

Congratulations to all and BIG THANKS to our valuable customers for reposing their confidence on us.

Dr. Raghuram G Rajan, RBI Governor has conferred the Best IT Enabled Bank Award to Andhra Pradesh Grameena Vikas Bank (an SBI sponsored RRB), among all RRBs in the Country, in a programme organized today at IDRBT, Hyderabad under its Technology Excellence Awards for Banks – 2015-16 programme.

Shri V. Narasi Reddy, Chairman and Shri Y.N. Sukumar, General Manager-I, APGVB has received the Award from the Governor.

14


NPCI Special Award

o Our Bank has bagged Special Award in recognition and

appreciation of highest number of transactions in

National Financial Switch (NFS) ATM Network under the

category of RRBs. An eminent and independent panel of

jury constituted by NPCI has built the framework for

monitoring the evaluation process.

o RBI Dy Governor Mr R Gandhi, who was the Chief Guest

in the National Payments Awards Function 2015,

organized by NPCI on 22.12.15 in Mumbai, presented

the Special Award to APGVB for excellent performance

in their product NFS.

Our Bank is the Winner of Social Banking Excellence

Awards 2015 under Rural Banking Category awarded by

ASSOCHAM.

o Hon'ble Minister of state for Finance, Shri Jayant

Sinha, who was the Chief Guest for the 11th Annual

Banking Summit, has presented the Award to Shri V.

Narasi Reddy, Chairman, APGVB in Mumbai today.

o ASSOCHAM Social Banking Excellence Award is a

way to recognize, reward and celebrate models of

inclusive growth for sustainable development as

well as innovative approaches towards creating

value for society and business together. The Awards

to seek to identify and honour Banks and provide role

models of best practices to other Banks. Rural

Banking includes rewarding the rural activities

undertaken by the bank in inculcating banking

habits and promoting banking culture in the

members of the rural society including rural women,

rural service providers and rural businessmen

o APGVB's contribution to inclusive growth through its

rural banking activities has been recognized based

on the volumes in its operations as on 31.3.15 and

the massive impact created by APGVB on the rural

society.

o Shri V. Narasi Reddy is seen receiving the Award from

the Minister of State for Finance Shri Jayant Sinha.

Seen in the Picture is SBI's MD Shri P. Sreeram.

15


KEY PERFORMANCE INDICATORSIndicators 2014-15 2015-162013-14

A KEY PERFORMANCE INDICATORS

1 No. of Districts covered 8 8 8

2 No. of branches 704 728 751

a) Rural 509 520 531

b) Semi urban 148 149 156

c) Urban 47 49 49

d) Metropolitan ….. 10 15

Ultra-Small Branches 488 493 488

3 Total Staff (excluding Sponsor Bank Staff) 2743 2843 2951

of which, Officers 1701 1660 1773

4 Deposits 67911806 82800015 102021153

Growth % 15.71 21.92 23.21

5 Borrowings outstanding 22803839 32079962 37337981

6 Gross Loans & Advances outstanding 78954212 90656121 106017675

Growth % 19.82 14.82 16.94

of 6 above, loans to Priority Sector 65098351 77385394 91912049

of 6 above, loans to Non Target Groups 13855861 13270727 15767667

of 6 above, loans to SC/ST 13422231 16250932 19308609

of 6 above, loans to SF/MF/AL 24271384 27782661 56544544

of 6 above, loans to Minorities 3158172 4643178 5516810

7 CD Ratio 116.26 109.49 103.92

8 Investments Outstanding 26599025 48483582 51960779

SLR Investments Outstanding 16633397 17956129 22886427

Non-SLR Investment Outstanding 9965628 30527453 29074352

B. AVERAGE

9 Average Deposits 60203159 73893516 91112765

Growth % 15.52 22.74 23.30

10 Average Borrowings 28764388 26247121 41682772

Growth % 8.91 -8.75 58.81

11 Average Gross Loans And Advances 70659351 80183390 94881573

Growth 15.4 13.48 18.33

12 Average Investments 27702372 32715306 49375579

Growth % 115.79 18.10 50.93

Average SLR investments 14202143 16897617 20501769

as % to average deposits 23.59 22.87 21.33

Average Non-SLR Investments 13500229 15817689 28873810

as % to Average deposits 22.42 21.41 82.54

13 Average working funds 109001922 123134237 158988248

Rs. in 000's

16


Indicators 2014-15 2015-162013-14

Rs. in 000's

C LOANS ISSUED DURING THE YEAR

14 Loans issued during the year 51919118 67975850 91722339

Growth % 2.01 30.92 34.94

of 14 above, loans to Priority Sector 34949580 51332447 71366527

of 14 above, loans to Non-target Groups 16969538 16643403 23077341

of 14 above, SC/ST 10484874 14274928 1926191

D PRODUCTIVITY

15 Per Branch 208617 238264 277016

Per Staff 53425 61012 70498

E RECOVERY PERFORMANCE

16 TOTAL

Demand 57704721 61206745 77776039

Recovery 45132478 47524012 64303445

Over dues 12572247 13682733 13472594

Recovery % 78.21 77.65 82.68

(June position)

17 FARM SECTOR

Demand 20020979 20130889 37592669

Recovery 9781119 9261699 26551169

Over dues 10239860 10869190 11041500

Recovery % 48.85 46.01 70.673

(June position)

18 NON-FARM SECTOR

Demand 37683742 41075856 40183370

Recovery 35351359 38262313 37752276

Over dues 2332383 2813543 2431094

Recovery % 93.81 93.15 93.95

(June position)

F ASSETS CLASSIFICATION

19 (a) Standard 75456049 87665819 103497691

(b) Sub-Standard 1595302 1650916 776023

(c) Doubtful 1892399 1332516 1736300

(d) Loss 10462 6870 7661

Total 78954212 90656121 106017675

Std.Assets as % to Gross Loans & Advances out standings 95.57 96.70 97.62

G PROFITABILITY ANALYSIS

21 Interest paid on

a) Deposits 4633385 5787730 6946094

b) Borrowings 2401763 2035532 2739088

17


Rs. in 000's

Indicators 2014-15 2015-162013-14

22 Salary 1399743 1514481 2357204

23 Other Operating Expenses 927612 718632 1010451

24 Provisions made during the year

(a) Against NPA's 253451 62810 303449

(b) Other Provisions -286813 385028 -306919

(c) Amortization

25 Interest received on

(a) Loans & Advances 8659163 9939772 11047289

(b) Investments 2367031 2498841 3799661

26 Other Income 751509 1000939 1614741

27 Loss / Profit 1805331 2016072 2234707

H Other information

28 Share Capital Deposit Received 890850 890850 Nill

29 DI & CGC - - -

(a) Claims settled cumulative - - -

(b) Claims received but pending adjustment - - -

(c) Claims pending with Corporation - - -

30 Cumulative Provision

(a) Against NPAs 713542 750217 1043312

(b) Against Standard Assets 216777 248155 292611

(c) Against Intangible Assets 197857 472563 121188

Frauds etc.

31 Interest Derecognized

(a) During the year Nill Nill Nill

(b) Cumulative Nill Nill Nill

32 Loans Written off during the year

(a) No. of Accounts 9339 137 35

(b) Amount 44344 2277.82 2098

33 Accumulated loss Nil Nil Nil

34 Reserves 8786546 10802618 13037325

Net NPAs 2550101 2224258 1476672

% Provisions to gross NPAs 20.39 25.08 41.40

% Gross NPAs to advances 4.43 3.30 2.38

% Net NPAs advances 3.27 2.48 1.41

CRAR 13.26 13.45 13.48

18


Board of Directors Report 2015-16

Teaming Up

19


20

we are with you!

(Sponsored by State Bank of India)

BOARD OF DIRECTOR REPORT 2015-16'S

Profit Analysis

The Bank registered a Net Profit of Rs 223.47 Crore for the

year 2015-16 as against Rs 201.61 Crore for the previous

FY 2014-15 at a growth rate of 10.84%.

Inspite of a hike of Rs 78 Crore in Employees cost on

account of X Bipartite Settlement and a hike of Rs 18 Crore

on account of provisions for Gratuity and leave

Encashment over previous year and a fresh provision of Rs

30.44 Crore towards NPAs, the Bank could surpass its Net

Profit target of Rs 211.69 Crore.

Recovery of AUCA to the extent of Rs 6.67 Crore, increase

in Non-fund based income by Rs 35 Crore, profit from

sale of investments to a tune of Rs 26.27 Crore and

reduction in NPAs resulting in less additional provisions

have improved the net profitability of the Bank.

The Operating profit of the Bank stood at Rs 340.89 Crore

as on 31.3.16 vis-à-vis previous FY's figure of Rs 338.32

Crore. There is a marginal increase of Rs 2.57 Crore in

operating profit during the year. This is due to increase in

Staff wages, Gratuity and Leave encashment etc., by Rs

95.35 Crore over 2014-15. However, the Net profit of the

Bank has been on the rise continuously in the last nine

years.

Income and Expenditure (Rs in Crores)

BusinessBusiness

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-140

56356698

7675

9689

10686

12459

14687

(Rs in Crores)

2014-15

17346

ProfitProfit

0

50

100

150

200

250

300

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2015-16

37

69

103 108 120

159180

223

(Rs in Crores)

thWe have pleasure in presenting the 11 Annual Report of

Andhra Pradesh Grameena Vikas Bank (APGVB) together

with the Audited Statement of Accounts, Auditors' Report

and the report on business and operations of the Bank for stthe financial year ended on 31 March 2016.

The Bank's business has registered a growth of Rs 3458.26 stCrore at 19.94% to reach Rs 20803.89 Crore as on 31

March 2016 as against Rs 17345.62 Crore as on

31.3.15. This growth in business over March 2015 level,

is impressive vis-à-vis the growth of Rs 2658.98 Cr in

2014-15.

56% of the business growth of Rs 3458.26 Crore was

contributed by Deposits and the remaining 44% by loans

and advances with an absolute growth of Rs 1922.11 Cr

and Rs 1536.15 Cr respectively. The distribution of

growth between deposits and advances in FY 2014-15

was also at the same ratio.

Business Review

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

25000

2015-16

20804

2013-14

2014-15

202

Particulars 2013-14 2014-15 2015-16 Growth %

Interest Income

Interest Expenditure

Non-Interest Income

Non-Interest Expenditure

Gross Profit/Operating profit

Taxes

Deferred Tax Asset & Earlier year adjustments (excess)

Provisions and Contingencies

Prior Perioddepreciation & rent

Net Profit

1102.62 1243.86 1484.70 19.36

703.51 782.33 968.52 23.80

75.16 100.09 161.47 61.32

231.29 223.31 336.76 50.81

242.97 338.32 340.89 0.76

68.82 90.00 107.62 19.58

-3.05 1.93 10.14 425.38

-3.33 44.78 -0.35 -

0 0 0 0

180.53 201.61 223.47 10.84

21


(Rs in Crores)Interest Income on Advances

Interest Income on Investments

2008-09

2009-10

2010-11

2011-12

2012-13

2013-140.00

200.00

400.00

600.00

800.00

1000.00

1200.00

319.

7112

7.46

428.

3314

9.06

515.

76

127.

23

599.

4918

6.12 20

2.83

762.

40 865.

9223

8.83

1104

.73

379.

97

2015-16

Net Interest Income

The net interest income has increased to Rs 516.18 crore during

the year vis-à-vis Rs 461.54 crores in 2014-15 with a growth rate

of 11.84%. Growth in CASA this year has impacted the rise in

Net Interest Income during the year


o

O

Interest paid on deposits has increased to Rs 694.61

Crore from the last FY's figure of Rs 578.77 Crore by Rs

115.84 Crore (20.01%). The increase in interest paid

on deposits was subdued vis-à-vis deposits growth of

23.21%. CASA grew by 25.43% while term deposits

grew by 21.97%.

The Bank has paid Rs 273.91 Crore towards interest on

borrowings (refinance from NABARD, SBI and NHB)

during the year as against Rs 203.55 Crore of FY

2014-15 with an increase of Rs 70.36 Crore. The year

2014-15 had a decline of Rs 36.63 Cr under this head

when compared to FY 2013-14.

2008-09

2009-10

2010-11

2011-12

2012-13

2013-140.00

200.00

400.00

600.00

800.00

1000.00

1200.00

447.

1726

2.18

577.

3932

6.00

642.

9835

7.29

785.

6051

2.74

590.

40

965.

32 1102

.62

703.

52

Interest Income


1400.00

1243

.86

782.

32

2014-15

Operating expenditure

Interest Income

o

O

O

O

Operating expenditure has increased by Rs 113.46

Crore (at 50.81%) from Rs 223.31 Crore in 2014-15

to Rs 336.77 Crore in current fiscal. This is in sharp

contrast to a decline of Rs 7.98 Crore during previous

FY. Staff related expenditure like X Bipartite

Settlement implementation, Gratuity and Leave

Encashment increased by Rs 103.19 Crore over

2014-15, propelled the operating expenditure. All

other heads of expenditure have registered normal

growth.

Interest income increased from Rs 1243.86 Crore to

Rs 1484.70 Crore during the FY with an absolute

growth of Rs 240.84 Crore (at 19.36%)

The Bank has earned an interest income of Rs

1104.73 Crore from loans and advances in current

fiscal as against Rs 993.98 Crore in 2014-15 with an

increase of Rs 110.75 Crore (@ 11.14%).

The interest income received from investments has

increased by Rs 130.08 Crore at 52.06% to reach Rs

379.97 Crore as against Rs 249.89 Crore in the

previous FY. The growth rate has increased

substantially from 5.57% registered during FY 2014-

15 to 52.06%.

2015-16

1484

.70

968.

52

1600.00

(Rs in Crores)

Interest paid on Borrowings

Interest paid on Depostits

0.00

100.00

200.00

300.00

400.00

500.00

600.00

169.

9492

.24

212.

6311

3.37

227.

4712

9.82 32

6.93

185.

82 200.

0839

0.32 46

3.34

240.

18

700.00

578.

77

203.

55

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

800.00

694.

6127

3.91 2014-15

993.

9824

9.89

(Rs in Crores)

22


Provision for NPAs:

The Bank has made a provision of Rs 30.44 Cr on NPAs during the year, taking the total Provisions available on

Advances to Rs133.59 Cr (including cumulative provision of Rs 29.26 Cr on Standard Assets).

(Rs in Crore)

Ratio Analysis

S.No. Ratios 2012-13 2013-14 2014-15 2015-16

Amt / Ratio % Change

1 Yield on advances 12.45 12.25 12.40 11.64 -6.13

2 Yield on investments 8.65 8.58 7.73 8.29 7.24

3 Cost of deposits 7.49 7.70 7.83 7.62 -2.68

4 Cost of borrowings 7.58 8.35 7.76 6.57 -15.33

5 Avg. cost of funds 6.19 6.45 6.35 6.09 -4.09

6 Avg. return of funds 10.19 10.13 10.13 10.35 2.17

7 Cost of management 2.13 2.14 1.81 2.12 17.13

8 Misc .Income as % to Working Funds 0.80 0.68 0.79 0.83 5.06

9 Net Margin 2.67 2.36 2.14 2.98 39.25

10 Financial Margin 4.00 3.76 3.78 4.26 12.70

11 Risk Cost 0.56 0.68 0.62 0.67 8.06

12 Return on Assets 10.22 10.9 1.64 1.41 -14.02

13 Gross Rate of return 1.40 1.38 1.31 1.20 -8.40

14 Expenses ratio 45.10 46.79 39.76 49.70 25.00

15 Gross NPAs 267.45 343.28 299.03 252.00 -15.73

16 Net NPAs 172.81 228.56 224.25 147.67 -34.15

17 % Provisions to gross NPAs 22.26 26.81 25.08 41.40 65.07

18 % Gross NPAs to advances 4.06 4.35 3.30 2.37 -28.18

19 % Net NPAs to advances 3.00 2.94 2.47 1.40 -43.32

20 CRAR 12.91 13.26 13.45 13.48 0.22

Balance Sheet Size

Capital & Reserves

The balance sheet size amounted to Rs 16173.34 with a

moderate increase of Rs.2574.60 Crores over March

2015 level.

Pursuant to The Regional Rural Banks (Amendment Act)

2015, published by Ministry of Law and Justice on May 12,

2015 and as per the letters from NABARD and the

Sponsored Bank, the Bank with the approval of the Board

has:

I. Raised the Authorized Capital of the Bank from

5,00,000 Equity Shares of Rs. 100/- each aggregating

to Rs. 5 Crores to 200,00,00,000 Equity Shares of Rs.

10/- each aggregating to Rs. 2000 Crores

Assets 2012-13 2013-14 2014-15 2015-16

O/s Provisions O/s Provisions O/s Provisions O/s Provisions

Standard

Sub Standard

Bad & Doubtful

Loss

Total

6322.13 18.30 7545.60 21.68 8766.58 24.82 10349.77 29.26

148.74 13.97 159.53 15.11 165.09 17.36 77.60 12.00

118.71 38.61 189.24 55.25 133.25 56.98 173.63 91.56

1.05 0.99 0.68 0.68 0.76 0.76

6589.58 70.88 7895.42 93.03 9065.60 99.84 10601.77 133.59

23


3.6 a. Adjusted value of funded risk assets i.e., balance sheet items

b. Adjusted value of non- funded risk assets i.e., balance sheet items 0 0

c. a+b

d. Percentage of Capital (Tier-I + Tier II) to Risk Weighted Assets

7576.88 9256.00 10663.00

0

7576.88 9256.00 10663.00

13.26 13.45 13.48

2 Tier-II

a. Undisclosed Reserves

b. Revaluation Reserves

c. General Provisions & Reserves

d. Investment fluctuations Reserves / Fund

Total Tier-II Capital

Grand Total (Tier I + Tier II)

31.99 70.49 39.94

31.99 70.49 39.94

1004.73 1244.84 1437.75

1 Tier-I

a. Paid up Capital

b. Share Capital Deposit

c. Statutory Reserves & Surplus

d. Capital Reserves 0.01 0.01

e. Other Reserves 14.31 14.31

f. Surplus in P&L

Total Tier-I Capital

Capital 2013-14 2014-15 2015-16

5 5 94.08

89.08 89.08 Nill

177.06 217.39 262.08

0.01

14.31

687.26 848.55 1027.33

878.65 1080.261303.73

972.74 1174.35 1397.81

Net worth

Net worth of the Bank stood at 1397.81 Crore with a

growth of Rs 223.47 Crore (19.03%) over previous FY's

figure of Rs 1174.35 Crore.

The capital adequacy ratio has further strengthened to

reach 13.48% at the end of the year vis-à-vis 13.45% as

on 31.03.15 well above the level of minimum 9%

stipulated by Dr. K.C Chakravarthi Committee

The following table gives the position of Tier-I, Tier-II

Capital, Reserves and computation of CAR.

(Rs in Crore)

Deposits

Deposits registered an impressive growth of Rs 1922.11

Crore over March 2015 level at a growth rate of 23.21%.

This growth is the highest in the history of the Bank. Total

deposits as on 31.3.2016 stands at Rs 10202.11 Crore as

against Rs 8280.01 Crore as on 31.3.2015.

Ii. Converted Share Capital Deposit of Rs. 89,08,50,000

by issuing 8,90,85,000 Equity Shares of Rs. 10/- each.

The conversion of share capital deposit into Equity

Capital has not altered the shareholding pattern of the

Bank

Accordingly, he Bank's paid up capital stood at Rs

94,08,50,000 (9,40,85,000 shares of Rs 10 each),

subscribed by Government of India, State Government

and State Bank of India in the ratio of 50:15:35. The

Reserves increased by Rs 223.47 Crore at 20.69% from Rs

1080.26 Cr as on 31.03.15 to Rs 1303.73 Cr as on

31.03.16.

There has been a consistent growth on month to month

basis except a marginal fall in April and August 2015.

0

200

400

600

800

1000

1200

2007-08

2008-09

2009-102010-11

2011-12

2012-13

2014-15

2015-16

152221

311419

539

698

879

1080

ReservesReserves (Rs in Crores)

2013-14

1400 1304

(Rs. In Crores)Deposits growth in 2015-16Deposits growth in 2015-16

0

2000

6000

4000

8000

Mar-1

5Apr

i-15

May-1

5Ju

n-15

Jul-1

5Aug

-15

Sep-1

5Oct-

15Nov

-15

Dec-1

5Ja

n-16

10000

12000

(Rs. In Crores)DepositsDeposits

0

2000

6000

4000

8000

2934 3394 38054795

51535869

6791

10202

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

8280.0110000

12000

Feb-1

6Mar

-16

8280

8077

8252

8530

8919

8845

8997

9084

92139502

9671

10006

10202

24


(Rs. in Crores)

Deposit mix 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Current A/c

Growth

Growth %age

Savings Bank A/c

Growth

Growth %age

Total CASA

Growth

Growth %age

179.38 123.56 122.96 55.41 52.44 59.34

49.58 -55.82 -0.6 -67.55 -2.97 6.90

38.20 -31.12 -0.49 -54.94 -5.36 13.16

2212.19 1839.50 2154.50 2398.34 2924.33 3674.42

644.51 -372.7 315.02 243.84 525.99 750.09

41.11 -16.85 17.13 11.32 21.93 25.65

2391.57 1963.10 2277.5 2453.75 2976.77 3733.76

694.09 -428.52 314.40 176.25 523.02 756.99

40.89 -17.92 16.01 7.74 21.32 25.43

Term Deposits 2403.14 3183.60 3591.70 4337.43 5303.23 6468.35

Growth 296.11 780.47 408.09 745.73 965.80 1165.12

Growth %age 14.05 32.48 12.82 20.76 22.27 21.97

Total deposits 4794.71 5146.70 5869.20 6791.18 8280.01 10202.1

Growth 990.20 351.96 722.47 921.99 1488.82 1922.1

Growth %age 26.03 7.34 14.04 15.71 21.92 23.21

Deposit Mix

CASA deposits grew by Rs 756.99 Crore at 25.43% to reach Rs 3733.77 as against Rs 2976.77 Cr. Term Deposits

grew by Rs 1165.12 Crore to reach a level of Rs 6468.35 Crore at 21.97% as against Rs 5303.23 Crore. The growth

of 25.43% in CASA during the year 2015-16 has been stupendous when compared with CASA growth rates of 7.74%

in 2013-14 and 16.01% in 2012-13 and 21.32% in 2014-15.

A CASA campaign was conducted from 01-12-2015 to 29-02-2016 and we were able to mobilize Rs 455.49 Crore

during the campaign, raising the CASA share by 1.79%. During the campaign period 1,14,261 new CASA accounts

were opened. High / bulk cost deposits have been consciously discouraged and more focus given to CASA. Thereby,

we are able to reduce the cost of deposits by 0.21% from 7.83 to 7.62.

The share of CASA has increased from 35.95% (31.03.2015) to 36.60% as on 31.03.2016

Borrowings

stThe aggregate borrowings of the Bank as on 31 March 2016 stood at Rs. 3733.80 Crore whereas it was Rs. 3207.99 stCrore as on 31 march 2015.

Institution 2015-16 2014-15 Variance

1 NABARD -403.21

2 SBI 969.67

3 NHB -40.65

3051.74

34.94

121.31

3207.99 525.81

S.No

2648.53

1004.61

80.66

3733.80

The Bank has availed refinance against Crop loan disbursements from NABARD and SBI at 40% and 50% respectively.

Refinance against SHG disbursements and Rural Housing was provided by NABARD and NHB respectively @ 100%.

25


Assets

Investments

Total investments portfolio– both SLR and Non-SLR - of the Bank has increased to Rs 5196.08 Crore as on 31.3.16 from previous year's

level of Rs 4848.35 Crore by Rs 347.73 Crore @ 7.17%.

(Rs in Crores)

Investments

999.69 1104.97 1339.44 1663.34 1795.61 2288.64

240.79 105.28 234.47 323.90 132.27 493.03

31.73 10.53 21.22 24.18 7.95 27.46

1147.58 1272.01 1778.3 996.56 3052.74 2907.44

244.32 124.43 506.28 -781.73 2056.18 -145.3

27.05 10.84 39.80 -43.96 206.33 -4.76

2147.28 2376.98 3117.7 2659.90 4848.35 5196.08

485.11 229.70 740.75 -457.83 2188.45 347.73

29.19 10.70 31.16 -14.68 82.28 7.17

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

SLR

Growth

Growth %age

Non SLR Investments

Growth

Growth %age

Total Investments

Growth

Growth %age

Investment Policy

The Bank has an Investment Policy in conformity with the

instructions received from RBI/NABARD/Sponsor Bank,

approved by the Board, in terms of which investments are

made.

The Investment Committee comprising of the following

members take investment decisions:

1. Chairman

2. General Manager - I

3. General Manager - II

4. General Manager - III

5. Chief Manager (Accts)

6. Chief Manager (Planning & Devp)

7. Chief Manager (Credit)

8. Chief Manager (IT)

The quorum of the Investment Committee is 5 (Five) and

the Committee should meet preferably in the presence

of Chairman.

The Investment Committee meets periodically to review

the funds position and decide the deployment of funds

in SLR and Non-SLR avenues.

SLR Investments

Non SLR Investments

CRR and SLR

In terms of Section 24 of the BR Act 1949, the Bank has

maintained investments in the avenues laid down in the

Policy, to fulfill the SLR requirements. All SLR investments

are made in GOI/State Govt Securities only. The

purchase and sale of Govt Securities are undertaken by

the Portfolio Management Services Department of State

Bank of India.

Non-SLR investments are invested in TDRs of Banks. The

Bank has been monitoring and following up for prompt

receipt of interest due from Govt Securities /Bonds. There

was no instance of income leakage from Non-SLR

investments portfolio.

The Bank has complied with the regulatory requirement of

maintenance of adequate balances towards CRR and SLR.

There is a well laid down system of assessing the CRR and

SLR requirements taking into account the NDTL. There

was no default in maintenance of adequate balances

during the year. The Bank has kept Rs 430.47 crore in CRR

and Rs 2379.58 crores in SLR as on 31.03.2016.

26


Cash Management Product (CMP):

Credit Portfolio

Credit to Agriculture

Kisan Credit Cards

CMP was introduced during the previous FY by entering

into an agreement with SBI at 86 Branches. During the

current year, CMP was introduced with SBH also covering

66 Branches. Under the agreement an amount of Rs

58.05 Crores w i l l be t rans fe r red to 152

branches/Regional Offices every morning and at the end

of the day the available balances will be transferred to our

OD accounts at SBI/SBH, Hanamkonda.

The credit portfolio of the Bank rose by 16.94% to Rs

10601.77 Crore during the financial year ended

31.03.2016 from the previous year level of Rs 9065.61

Crore, thus showing an absolute growth of 1536.15 Crore

as against the target of Rs 1269.19 Crore. The number of

loan accounts increased by 6.55% to 1249916 as on

31.3.2016 from the previous year's position of 1173076

accounts as on 31.3.2015, showing a growth of 76840

accounts.

Total credit to agriculture including allied activities

excluding agriculture-portion of SHG lending, stood at Rs

4278.79 Crore as on 31.3.2016 as against Rs 3637.32

Crore with a growth of Rs 641.47 Crore (@ 17.64 %).

Total number of Bank's borrowers in Agriculture sector has

increased to 786306 vis-a-vis 720816 in FY 2014-15,

with an increase of 65490 more than 90 % of the credit to

SHG finance is also towards agriculture.

The Bank has disbursed Rs 5716.29 Crore to the

agriculture during the year as against the previous year's

disbursal of Rs 3834.79 Crore.

Total credit to agriculture and allied activities constitutes

40.35 % of the total credit portfolio as on 31.3.2016 vis-à-

vis 40.12 % as at the end of previous FY.

As per the directions of Government of India and

NABARD, we have implemented revised Kisan Credit Card

System for crop loan borrowers from Kharif 2012.

According to the guidelines of revised KCC, we have

created a new product KCC-cum-SB account in the CBS

for a period of 5 years. As per this system, the farmers can

remit their surplus funds in the KCC account and can draw

according to their requirement and they need not

maintain separate Savings Bank account. There is a

provision for giving interest as applicable for Savings

Bank account for the credit balances in the KCC account.

Further, loan limits will be fixed for 5 years and documents

will be obtained for the terminal limit. Year-wise limits will

be fixed basing on present Scales of Finance and keeping

in view the future cost of investment.

We have issued 765573 KCCs as on 31.3.16 with an

outstanding credit of Rs 4141.60 Crore as against

previous FY level of 691652 KCCs and Rs 3472.83

respectively.

During the year 2015-16, we have issued 650989 KCC

cards and disbursed an amount of Rs 3888.24 Crore as

against 505221 cards and Rs 2759.62 Crores

respectively during the year 2014-15. Instructions were

issued to all the branches to cover all KCC holders up to

the age of 70 under Personal Accident Insurance Scheme,

during the three year card holding period, with risk

coverage of Rs.50,000/-. The annual premium of Rs.20/-

was jointly borne by the Bank Rs.13/- and the borrower

Rs.7/-.

We have financed 6994 tenant farmers under the Loan

Eligibility Cards Scheme with a credit outstanding of Rs

14.86 Crore during the year 2015-16. AP Land Licensed

Cultivators Ordinance aims at ensuring loan and other

benefits to tenant farmers, by means of Loan Eligibility

Cards.

JLGs are expected to overcome the problem of tenant

farmers getting deprived of institutional credit. The Bank

has financed an amount of Rs 72.58 Crores to the JLGs

during the year. This year we proposed to form 7520

JLGs with minimum 10 JLGs of each branch.

NABARD has sanctioned a grant assistance of Rs 13.28

lakhs for formation and linkage of 1328 JLGs during the

year in Telangana state.

Government of Andhra Pradesh has been implementing

“Vaddileni Runalu/ Pavala vaddi”. Under “RythuSri”

scheme i.e., reimbursement of interest for prompt payers

Tenant Farmers – Loan Eligibility Card Holders

Joint Liability Groups (JLGs)

Crop Loans - Vaddileni Runalu / Pavala Vaddi –

27


2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2011

-12

2012

-13

2010

-11

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

6014

0 8283

5

1063

50 1397

08 1610

77

1722

60

1633

08

1601

86

No of SHGsNo of SHGs

2013

-14

1633

8820

14-1

5

1844

40

of crop loan borrowers from Rabi 2011-12. Under the VLR

Scheme, farmers need not pay the interest portion. We

have however submitted our claim of Rs 61,17,76,887.60

and Rs 1,67,08,697.00 to the State Governments of

Telangana and AP respectively during the year 2015-16.

The Bank had implemented the 7% interest rate to all the

crop loan borrowers up to Rs.3.00 lakhs, as per the

Government of India instructions and claimed an amount

of Rs 31,14,13,859/- towards 2% interest subvention from

the GOI during the year 2015-16. As per the directives of

Government of India, we had passed on the benefit

relating to interest subvention incentive to the extent of Rs

4587.50 lacs to the prompt re-payers.

Conducting of GramaSabhas : GramaSabhas were

conducted using audio and video visuals to create

awareness about the Banking Services made available to

them. Village elders, SHGs, Government officials

particularly from IKP and agriculture departments have

participated.

Interest Subvention

Crop Loan Waiver Scheme in Telangana State

Our Bank has implemented Crop Loan Waiver Scheme

announced by the Government of Telangana. Under the

Scheme, all crop loans and crop loans against gold

ornaments outstanding as on 31.3.2014 have been

covered to the extent of Rs 1 Lakh (including interest up to

31.8.14) per farmer. In case the borrower took loan from

multiple bank branches, the outstanding loan amounts

are clubbed for the purpose of waiver.

Accordingly, we have submitted the data of all eligible

loans amounting to Rs 2401.42 Crores and Government

of Telangana released second phase 25% of the total

eligible amount for credit to respective accounts, with a

stipulation that the borrowers have to renew their loan

account every year regularly so as to get the remaining

instalments of eligible amount. We have renewed all

eligible crop loans by crediting the 25% of the waiver

amount.

Crop Loan Waiver Scheme in Andhra Pradesh State

Self Help Groups

Our Bank has implemented Crop Loan Waiver Scheme

announced by the Government of Andhra Pradesh.

Under the Scheme, all crop loans, crop loans against gold

ornaments and the crop loans converted to MTL, which

were outstanding as on 31.12.2013 including interest are

eligible for waiver. The maximum ceiling for waiver of the

loans was Rs 1.50 Lakhs. Entire family is taken as a unit

and loans taken from multiple Bank branches are clubbed

for arriving at the maximum waiver.

Accordingly, we have submitted the data of all eligible

loans amounting to Rs 649.54 crores and Government of

Andhra Pradesh released second phase 20% of the total

eligible amount for credit to respective accounts, with a

stipulation that the borrowers have to renew their loan

account every year regularly so as to get the remaining

instalments of eligible amount. We have renewed all

eligible crop loans by crediting the 20% of the waiver

amount.

The Bank has disbursed Rs2773.82 Crore to 164382

Groups during the year as against Rs 2112.87 disbursed

to 139829 SHGs during the previous year. The total loans

outstanding under SHG segment has risen to Rs 3984.69

Crore constituting 37.59% of total advances as against

previous FY's level of Rs3403.31 Crores, constituting 38%

of total advances. Lending to SHGs grew by Rs581.38

Crore (@ 17.08%).

Total No. of SHGs financed reached 184440 as on

31.03.2016 as against 176281 of last year .20

15-1

6

1762

81

28


Share of SHG portfolio in the total credit portfolio has risen

to 37.59% as against previous year's share of 37.54%.

Keeping in view the importance given by the GOI, RBI and

NABARD to SHG Lending, we have raised our exposure

limit of SHG lending portfolio to 40% of the total advances

and individual Group's maximum loan exposure to Rs

7.50 Lakhs.

As per the directions of Government of India and

NABARD, we have implemented Cash Credit System for

SHG loans with effect from January 2012.

The Bank has highest number of Self Help Groups

linked to Bank and loan amount outstanding, among

all RRBs in the country.

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2011

-12

2012

-13

2010

-11

0

500

1000

1500

2000

2500

3000

3500

4000

216

332 60

6 905 11

64 1472

1665

2016

Amt o/sAmt o/s

2013

-14

2513

2015

-16

3403

(Rs. In Crores)

2014

-15

3985

According to the guidelines of Cash Credit system, we

have started conversion of all SHG Term Loans

in to Cash Credit system from January

2012 itself and now almost all the Standard SHG Term

loans were converted as Cash Credit Loans. Further, we

have implemented sanction of SHG fresh loans (including

renewals) under Cash Credit System only.

Accordingly, we have arranged for fixing limits for a period

of 5 years basing on their present corpus and proposed

thrift. The loan documents will be obtained for the limit of

terminal year duly preparing the appraisal for 5 years and

year-wise limits will be fixed basing on present corpus and

proposed thrift . The limit will be fixed as 8 times of corpus

(1:8) for the current year and for the subsequent years, the

(only

Standard Assets)

limit will be 1:8 of present corpus PLUS expected thrift.

NABARD (vide their Letter No. NB.MCID/847/

Promotional Grant Dormant SHG (Policy)/2014-15 dated

04.12.2014) has announced an incentive scheme for

tracking and revival of dormant SHGs (Operative period

of the scheme is up to 31st March 2016). Under the

Scheme, NABARD would provide grant assistance for

revival and credit linkage of dormant SHGs at the rate of

Rs.3,000/- per SHG revived. Revival of dormant SHGs

which are having outstanding loan account with the banks

which is NPA for 6 months or more only is covered under

the grant assistance Scheme. We hope to revive

maximum number of dormant SHGs with this grant

Incentives for tracking and revival of dormant SHGs

Shri VVV Satyanarayana, CGM, TSRO, NABARD, Hyderabad visited our Fort Warangal Branch on 24.12.2015. He interacted with SHG women members during a loan disbursement

programme and handed over a Cheque for Rs 65 Lakhs to the SHGs. Seen in the picture from left to right are (1) Shri V. Prakash Babu, BM, Fort Warangal, (2) Shri V.S. Gupta, NABARD

Nominee Director on our Board, (3) Shri VVV Satyanarayana, CGM, NABARD (4) Shri V. Narasi Reddy, Chairman (5) Shri A.K. Chatterjee, AGM, NABARD (6) Shri RK Pandey, Asst.

Manager, NABARD (7) Shri T.V. Krishna Reddy, General Manager-II, (8) Shri D. Viswa Prasad, RM, Warangal and (9) Shri T. Chander, Senior Manager (Adv), Warangal RO.

29


assistance in the year 2016-17.

State Government has been implementing “Vaddileni

Runalu” scheme i.e. reimbursement of interest for prompt

payers of Self Help Groups. The Bank would provide

particulars of transactions in SHG accounts relating to all

the branches to the SERP and basing on that, the SERP,

Hyderabad, arrives at the list of SHG accounts eligible for

VLR scheme and accordingly release the interest amount

which is credited to the respective SHG accounts directly.

As per the directions of Government of India, SHG Cash

Credit loans are also to be treated as normal Cash Credit

Loans for the purpose of classification of asset etc. But, as

per the guidelines of VLR scheme of GOAP, the SHGs have

to repay a minimum of 3% drawing power every month to

become eligible for reimbursement of interest. We have,

therefore, insisted the SHGs for repayment of 3% of

drawing power towards EMI, though it is sufficient if they

pay only the interest and other charges if any, every

month.

Our Bank has implemented NRLM Scheme as per the

guidelines issued by NABARD vide their letter No

249/MCID-LS/2013-14 dated 26.11.2013.

The government restructured Swarnajayanthi Grama

Swarozgar Yojana - SGSY (which was in existence since FY

2010-11) into National Rural Livelihoods Mission (NRLM)

to provide greater focus and momentum for poverty

reduction. The Mission aims at creating efficient and

effective institutional platforms of the rural poor enabling

them to increase household income through sustainable

livelihood enhancements and improved access to

financial services.

Under the Scheme, all Women SHGs promoted by NRLM

or other Central or State Government Line Departments or

NABARD or any NGOs, which are linked with our Bank

are eligible to avail the benefits of the Scheme. As per the

Scheme, GOI identified 150 backward districts all over the

country under Category-I, of which we have five districts in

our notified area namely Warangal, Khammam,

Srikakulam, Vizianagaram and Visakhapatnam.

All such Women SHGs in the five districts have been

extended credit at 7% rate of interest upto Rs 3 Lakhs and

Government would subvent to the extent of difference

between 7% and actual rate of interest subject to a

SHGs - Vaddileni Runalu

National Rural Livelihood Mission (NRLM) -

Aajeevika – Interest Subvention Scheme

maximum of 5.5%. Apart from this, prompt paying SHGs

will be extended an additional 3% subvention. SERP

(Society for Elimination of Rural Poverty) would credit the

remaining 4% interest for prompt re-payers.

We have claimed an interest subvention of Rs 7316.55

lakhs and 3% interest subvention of Rs 3464.73 Lakhs

during the year 2015-16 under NRLM.

We have three districts among the Category-II districts

(other than the above 150 districts) under NRLM namely

Nalgonda, Mahabubnagar and Medak. Funding for this

subvention will be provided by the SRLM (State Rural

Livelihood Mission).

SRLM and SERP will provide each 7% interest as

subvention for prompt re-payers through e-transfer to the

SHGs accounts under the Scheme for Category-II districts.

Overnment of India restructured Swarna Jayanti Shahari

Rozgar Yojana (SJSRY) as National Urban Livelihood

Mission (NULM). The SEP (Self Employment programme)

component of NULM focus on providing financial

assistance through a provision of interest subsidy on loans

to support establishment of Individual and Group

Enterprises and SHGs of urban poor. Under the Scheme,

(a) Interest subsidy, over and above 7% of ROI is available

on a Bank loan of Rs 2 Lakh to individual enterprises and

Rs 10 Lakh for Group Enterprises. The difference between

7% p.a. and the prevailing ROI will be provided to Banks

under NULM; (b) SHGs in urban areas can avail Bank

loan at 7% ROI. The difference between 7% p.a. and the

prevailing ROI will be provided to Banks under NULM.

Further an additional 3% interest subvention will be

provided to all women SHGs for prompt repayment as per

repayment schedule by GOI. Apart from this, as per State

Government of Andhra Pradesh, the balance portion of

interest will also be released under VLR Scheme as per the

eligibility.

In terms of RBI Circular No: FIDD.CO. Plan.BC.No.

14/04.09.01/2015-16 dated December 3, 2015, 75

per cent of outstanding advances should be towards

Priority Sector, which constitutes loans extended to (a)

Agriculture (Farm credit , Agriculture infrastructure,

Ancillary activities ) (b) Micro, Small and Medium

Enterprises (Manufacturing and Service Sector, KVI and

OD to PMJDY) (c) Education (d) Housing (e) Social

Infrastructure (f) Renewable Energy (g) Weaker Sections

National Urban Livelihood Mission (NULM)

Priority Sector Lending

30


and (h) Others (SHG/JLG, distressed persons, Loans to

State Sponsored Organisations for Scheduled Castes/

Scheduled Tribes).

RRBs will have a target of 75 per cent of their outstanding

advances for priority sector lending and sub-sector targets

as indicated in table below.

Categories Targets

Total Priority Sector 75% of total outstanding

Agriculture 18% of total outstanding

Small and Marginal Farmers 8% of total outstanding

Micro Enterprises 7.5% of total outstanding

Weaker Sections 15% of total outstanding

The Bank priority sector lending constitutes 86.69 % of

total advances. In absolute terms, total priority sector

lending stood at Rs 9191.21 Crore as on 31.03.2016 as

against Rs 7738.54 Crore as on 31.03.2015. There is a

growth of Rs 1452.67 Crore @ 18.77%. The Weaker

Sections Loans stood at Rs 8144.27 Crore, which forms

76.82 % of total lending

(Rupees in Crore)

1. Weaker Sections

2. Women borrowers

3. Minorities

4. SCs/STs

2013-14 2014-15 2015-16

No. of O/s No. of O/s No. of O/sA/cs A/cs A/cs

805835 5526.80 823030 6616.45 844428 8144.27

402917 2763.40 445768 3082.31 468947 3847.03

46047 315.82 46923 362.62 47861 444.64

195702 1342.22 211153 1541.15 217487 2226.37

Inter Bank Participation Certificates

Government Sponsored Schemes

In accordance with the RBI guidelines, this year, the Bank

had participated in IBPC with State Bank of India for

Rs.648.00 crores and issued IBPC for an amount of

Rs.1283.00 crores. This amounts to selling our Bank's

Priority sector advances of Rs. 1283.00 crores to SBI and

purchasing non-priority sector advances of Rs. 648.00

crores from SBI.

The Bank has participated in Govt Sponsored Schemes

and as on 31.3.2016, the total finance extended under

various Schemes is as under.

(Rs in Lakhs)

(Rs in Lakhs)

Scheme Outstanding D 1.4.14 to 31.3.16

No. ofUnits Units

isbursement

Amt. No. of Amt.

from as on 31.3.16

RYS 1663 1833.73 1202 1006.18

Rajiv Gruhakalpa 915 128.33 0 0

SCAP 28571 8331.88 1066 856.92

BCAP 20989 5441.26 8808 4832.33

STAP 24334 6338.50 773 541.25

Minorities 4719 1824.41 593 411.83

VAMBAY/Indiramma 1983 768.81 0 0

Palapragathi 756 361.63 338 753.35

Pasukranthi 7475 3124.45 0 0

Others 4983 7429.29 1283 2239.39

Total 96388 35582.29 14063 10641.25

31


Scheme Target Achievement

No. of Amt. No. of Units Units Amt.

SGSY 248 773.18 219 685.15

RYS 1481 1241.16 1202 1006.18

SCAP 1414 1158.22 1066 856.92

BCAP 9897 5429.25 8808 4832.33

STAP 849 586.85 773 541.25

Minorities 756 513.50 593 411.83

Weavers 1373 109.80 824 114.86

DTG 88 45.55 81 42.23

KVIC 539 1233.15 338 753.35

Pasukranthi / PPK 9 101.00 04 51.55

PMEGP 380 378.10 130 193.00

Sericulture 45 50.15 33 39.38

MEPMA 1156 2432.00 959 2140.40

PHC 383 296.33 288 228.92

Others 1623 2835.51 1283 2239.39

Solar water pump System 60 300.00 14 75.60

Total 20301 17483.75 1661514212.34

Achievement % 82% 81%

Participation in State Credit Plans

The Bank's participation in State Credit Plans is as under: (Rs in Crore)

2013-14 2014-15 2015-16

Target Achievement Target Achievement Target Achievement

1. Crop Loans

2. Total Agr & allied activities

3. NFS

4. OPS

5. Total Priority Sector

% of achievement

2734.06 1429.16 2223.74 2759.62 2800.00 3888.24

792.85 9.95 100.00 60.42 200.00 164.36

279.38 308.21 108.25 90.74 120.00 211.67

1113.36 1742.77 1764.22 2070.13 1922.00 3249.82

4919.65 3490.09 4196.21 4980.91 5042.00 7514.09

71 118.70 149.03%

Retail Lending

Establishment of RASMECCC (Retail Assets Small, Medium Enterprises Centralised Credit Cell). As part of diversification of credit portfolio, we have established RASMECCC in Visakhapatnam during the year to exclusively focus on lending to

retail and SME segment. Retail segment has increased by Rs 343.95 Crore over previous year, of which Housing has accounted for Rs 140 Crore. Total outstanding increased to Rs

2119.57 crore from Rs 1775.62 crore at 19.37%.

(Rs in Crore)

O/s March' 2014 O/s March' 2015 O/s March' 2016

S.No Segments No of A/Cs Amount No of A/Cs Amount No of A/Cs Amount

1 Housing Loans

2 Mortgage Loans

3 Education Loans

4 Demand Loans

5

6 Personal Loans

7 Personal Gold Loans

Total

5851 339.77 6291 411.26 7012 551.21

2470 54.52 2171 53.53 2217 79.62

4189 73.60 4106 76.48 3760 84.45

25977 170.75 25054 188.46 22970 210.02

NFS - Term Loan 43542 137.20 43067 124.67 70571 252.33

17703 197.11 18476 229.55 16304 283.49

154305 795.25 145942 691.67 142352 658.45

254037 1768.20 245107 1775.62 265186 2119.57

Our Bank's RASMECCC (Retail Assets, Small, and Medium Enterprises Centralised Credit Cell), Visakhapatnam was inaugurated by Shri R.N. Dash, Regional Director, RBI, Hyderabad on 23.9.2015

32


CSIS Scheme

Government of India has introduced CCIS Scheme

(Central Scheme for Interest Subsidy) for providing relief to

students who were sanctioned / disbursed from

01.04.2009. Education loans availed by the students

from economically weaker sections whose annual gross

family income is up to Rs 4.50 Lakhs, are eligible under the

scheme. Our bank has been claiming Interest subsidies

under this scheme for the eligible students since 2009-10

to 2014-15 on the CSIS portal of Canara Bank (Nodal

Agency) every year. All the claims for all years has been

settled to our bank and partially settled for FY-2014-15.

We have claimed for the FY-2014-15 during claim period

2015-16 an amount of Rs 2,09,89,550/- in respect of

463 education loan accounts and received Rs

51,87,860/- from the Government of India. The balance

of Rs.1,58,01,690/- yet to be released to our Bank from

GoI.

Jawaharlal Nehru National Solar Mission

The Jawaharlal Nehru National Solar Mission aims at

addressing one of the most severe problems of the country

today i.e., energy conservation. The Bank has taken the

initiative of financing the solar lighting systems,

supporting the national cause. Total financing under

JNNSM stood at 5429 a/cs with amount outstanding

Rs.11.70 crore as on 31.03.2016.

Central Registry of Securitisation Asset Reconstruction and

Security Interest of India (CERSAI)

Our Bank had registered with CERSAI in terms of RBI

guidelines and complied with the instructions. Equitable

mortgages in respect of all our loans, which are covered

under Securitization and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002

(SARFAESI Act) as on 31.03.2016 have been registered

with CERSAI.

Poly House unit financed by our Sadasivapet Branch in Enkepally. Sri VVV Satyanarayana, CGM, NABARD TSRO inaugurating cucumber unit of POLY HOUSE while our Chairman inaugurated Capsicum unit on 25.3.2016. Sri TV Krishna Reddy, GM II, Sri Y Haragopal, AGM, NABARD Shri M. Vijay Sekhar, borrower are seen in the picture.

33


The details of the accounts covered under the Scheme is as under

Year

2014-15 1608 867.39

2015-16 4388 2569.24

No.of A/cs Amount in crores

Credit Information Companies

Our Bank has been a member of CIBIL (Credit Information

Bureau (India) Limited). CIBIL is the first Credit

Information Company licensed by the RBI and governed

by the Credit Information Companies (Regulation) Act of

2005. CIBIL collects and maintains records of individuals'

and non-individuals' (commercial entities) payments

pertaining to loans and credit cards from Banks and other

lenders on a monthly basis. Using this information a

Credit Information Report (CIR) and Credit Score is

developed, enabling lenders to evaluate and approve

loan applications.

Reserve Bank of India vide its letter No. DBR No.

CID.BC.60/20.16.056/2014-15 dated 15.01.2015 has

advised us that all Credit Institutions have a mandate to

become members of all CICs. Accordingly we have

become members of the other CICs viz., Equifax Credit

Information Services Private Limited, Experian Credit

Information Company of India Private Limited and CRIF

High Mark Credit Information Services Private Limited

which were granted Certificate of Registration by RBI.

The Non-Performing Assets have decreased by Rs. 47.04 stCrores from Rs. 299.03 Crores as on 31 March 2015 to

stRs.251.99 Crores as on 31 March 2016. Gross NPAs as

a percentage to total advances has come down from

3.30% as on 31.3.2015 to 2.38% as on 31.3.2016. Net

NPAs (as a %age to Net advances) has come down to

1.40% from 2.48%. In absolute terms, Net NPAs was

reduced from Rs 222.43 Crore to Rs 147.89 Crore.

The NPAs have come down in all segments except ATL

which is on account of slippage of some agricultural term

loans by Rs.7.10 Crores. This is due to nonpayment of

installment amounts on account of severe drought

conditions for the past two/three years.

In the case of SHGs, the NPAs have come down by Rs

15.60 Crore from Rs 54.47 Cr to Rs 38.87 Crore. This is

due to regular monitoring throughout the year as such

NPAs under SHGs were contained to less than 1%. We

have been trying to utilize the Grama Deepikas in

monitoring SHGs.

NPAs in Housing, Education and mortgage loans have

also come down by Rs 2.50 Cr, Rs 2.40 and Rs 1.99 Crore

respectively. This is due to regular monitoring for recovery

and enforcing SARFAESI Act, suit filing etc.

Notices under SARFAESI Act were issued immediately after

the account becoming NPA. This was monitored by Head

Office at monthly intervals. Our actions in this regard

have yielded good results. We have taken demonstrative

actions particularly under SARFAESI. One desk officer

each has been posted to all Regions exclusively for the

purpose of monitoring NPAs who will be responsible for

initiating action under SARFAESI, Suit Filed, vehicle seizure

etc., and also closure of suit filed cases, AUCA recovery

etc. Focus was given for recovery of Recalled debts/ Suit

filed accounts. Meetings with Advocates were conducted

in regions for expediting disposal of suits.

Asset Quality – Management of Non Performing

Assets

SARFAESI Act and Suit filing

With this, the details of the security interest created in

favour of our bank is available on a public domain for

search by citizens / other banks / FIs as a result of which

the potential fraud / multiple financing against the same

property can be prevented.

The objective of the Scheme is to make bank credit

available to the first generation entrepreneurs without the

hassles of collaterals / third party guarantees to realise

their dream of setting up a unit of their own Micro and

Small Enterprise (MSE). The Credit Guarantee Scheme

(CGS) seeks to reassure the lender that, in the event of a

MSE unit, which availed collateral free credit facilities, fails

to discharge its liabilities to the lender, the Guarantee Trust

would make good the loss incurred by the lender.

ISB Sector loans excluding retail trade advances and

including Small Road and Transport loans are eligible for

guarantee cover of CGTMSE up to a limit of Rs.10.00

lakhs, as per the directions of Reserve Bank of India

Credit Guarantee Fund Trust For Micro & Small

Enterprises (CGTMSE)

34


Lokadalat

· Lokadalat inter-alia, is one of the modes of Alternative

Dispute Resolution, of late, gaining popularity as the

award of the Lokadalat shall be deemed to be a decree

of Civil Court. The significant feature of the Lokadalat

is that legal experts holding Lokadalat bench guide the

parties in arriving at a compromise or settlement in a

friendly and harmonious atmosphere.

· The Lokadalats shall have jurisdiction to determine

and to arrive at a compromise or settlement between

the parties to a dispute in respect of any case pending

before any court or any matter which is falling within

the jurisdiction of any court and any matter not brought

before such court pre-litigation.

· Every award of Lokadalat shall be final and deemed to

be a decree of Civil Court binding on all the parties to

the dispute. Such civil court having jurisdiction shall

execute the order as if it were a decree made by that

court.

· No appeal shall lie to any court against the award of

the Lokadalat not even under Article 226 of the

Constitution because it is a judgement by consent.

· In order to have uniformity, we have advised the

percentage of remission to be allowed while referring

the cases to Lokadalat Accordingly our branches have

participated exceedingly well and many branches

have participated in Lokadalats. During the year 992

cases for an amount of Rs.6.02 Crores were referred to

Lokadalats of which 689 cases were settled for an

amount of Rs.4.69 Crores. Of which an amount of

Rs.3.16 Crores was recovered during the year 2015-16.

OTS and Compromise

Special OTS Scheme has been announced for NPAs in

ATL, AATL and ISB Sector for the year 2015-16 in addition

to Compromise Settlement wherever required

During the year 625 accounts have been settled under

OTS and recovered amount to the tune of 7.65 Crores

1415 Accounts have been recovered under compromise

during the year with an aggregate amount of Rs. 11.15

Crores

The following strategies were adopted to reduce / contain

the NPAs:

1. One desk officer each has been posted to all regions

exclusively for the purpose of monitoring NPAs who

will be responsible for initiating action under

SARFAESI, Suit Filed, vehicle seizure etc., and also

closure of suit filed cases, AUCA recovery etc.

2. All the Chief Managers at Head Office (HODs) have

been allocated one Region each to monitor NPA

position. They camped at those regions continuously

and visited branches, meeting NPA borrowers.

3. More than Rs.20.00 Lakhs outstanding NPA accounts

are being monitored by Chairman personally.

4. Top 100 NPA branches were monitored personally by

Chairman, 3 General Managers for reduction of

NPA.

5. Chronic NPA branches have been allotted to officials

who are working in Head Office to monitor and

reduce the NPAs.

6. NPAs between Rs.6.00 Lakhs to Rs.20.00 Lakhs in the

allotted regions were monitored by General

Managers.

SARFAESI (Rs.in lakhs)

Suit filed Cases

Demand Notice issued Possession notice issued Possession Taken Auctioned Regularised

A/Cs Amt A/Cs Amt A/Cs A/Cs Amts A/Cs

332 2078.87 178 1135.387 28 14 219.80 136

Suit filed

Permitted A/C closed Suit filed Decreed EP filed filing Suit

No. of Recovery after

A/Cs A/Cs A/Cs Amt A/Cs Amt A/Cs Amt Amt

2456 169 2287 4646.20 1086 1917 286 419.18 383.60

35


(Rs in Crores)Assets Classification

Assets 2013-14 2014-15 2015-16

O/s % O/s % O/s %

Standard

Sub Standard

Bad & Doubtful

Loss

Total NPAs

Total Advances

7545.61 95.57 8766.58 96.70 10349.77 97.62

159.53 2.02 165.09 1.82 77.60 0.73

189.23 2.40 133.25 1.47 173.63 1.64

1.05 0.01 0.68 0.01 0.76 0.01

349.81 4.43 299.03 3.30 251.99 2.38

7895.42 100.00 9065.61 100.00 10601.76 100

Depositor Education and Awareness Fund Scheme (DEAF) 2014

In terms of RBI Circular No: RBI/2013-14/DBOD. No: DEAF Cell BC.114/30.01.002/2013-14 dated 27.5.2014, our

Bank has implemented Depositor Education and Awareness Fund Scheme (DEAF) 2014.

Accordingly, we have remitted an amount of Rs.18,75,231/- during the year 2015-16 to Reserve Bank of India under DEAF

the Scheme.

Internal Control System – Inspection & Audit

The Risk Focused Internal Audit Report System, as suggested by State Bank of India, has been implemented in the Bank from

July 2009 and with effect from 1.9.2011, the Bank has raised the benchmark for the Inspection ratings, to tighten the

criteria to qualify for better rating:

7. Review mechanism has been put in place. Regular

review meetings are being conducted for Manager

(Advances) and Regional Managers.

8. Wide publicity was given with regard to advantages

on renewal of crop loans viz., enhanced scales of

finance, crop insurance facility, interest subvention

incentive from GOI and Vaddi Leni Runalu other

government sponsored schemes by way of arranging

meetings, displaying wall posters, Banners etc.

9. Top management conducted audio conferences at

frequent intervals with Regional Managers, Manager

(Adv.), Desk Officers (NPAM) for reviewing the

reduction of NPAs.

10. Account Tracking Centre (ATC) - The officials posted at

ATC continuously called borrowers under IRAC 1, 2, 4

and above for up-gradation of accounts.

11. Five to six clusters in each region have been farmed

with officials having good track record for capacity

building and reduction of NPAs.

12. Conducted auction for Gold ornament pertaining to

Personal Gold Loans which became overdue, at

common date at quarterly intervals.

36


Non-Performing Assets

As on31.03.2016

As on 31.03.2015

a NPA at Beginning 349.82 299.03

b Additions during the year 850.60 340.00

c Recovery of NPA

(Upgradation) 707.53 187.98

d Recovery of NPA (other) 193.63 198.86

e Write Offs 0.23 0.20

f NPA at the End 299.03 251.99

g Increase in cash Recovery as percent of opening GNPA 55.35 66.50

(Rs in Crores)

Rating Out of 477 Branches audited

during 2014-15 % during 2015-16 %

Out of 474 Branches audited

Excellent

Good 196

Satisfactory

Not Satisfactorily Run

279 59 326 69

41 148 31

2 - 0 -

0 0 -

477 100 474 100

· 85 Branches have upgraded from 'Good' to 'Excellent';

· 1 Branch has upgraded from 'Satisfactory' to 'Good';

· 1 Branch has upgraded from 'Satisfactory' to 'Excellent';

· 218 Branches have retained 'Excellent' rating;

· 125 Branches have retained 'Good' rating;

· Totally 20 Branches have downgraded to a lower grade.

· 24 New branches audited.

· No “Satisfactory” and “Not satisfactory” Branches as on

31.03.2016

All 461 Audit Reports which have fallen due for closure

during the year, have been duly dealt with and closed.

During the year, we have also audited 10 Regional Offices

and Ratings have been assigned to ROs to infuse

competitive environment among ROs to secure excellence

in their operations. Audit was carried out in Accounts

Department, Staff Learning Centre and Stationary Cell at

Head Office.

The reports submitted by the Auditors have been dealt with

by taking corrective measures, wherever necessary. The

Department has carried out its operations with fair and

without prejudice which helped in strengthening the

systems and procedures.

Apart from this, the following audits have also been

carried out to enhance the efficiency levels:

The schedule of Snap Audits have been advised to ROs on monthly basis to depute Officers from Region to other Region's Branches to carry out the Snap

Snap Audit –

37


Branches with 'Excellent' and 'Good' ratings are audited within 18 months from the previous audit date while the Branches

with 'Satisfactorily Run' and 'Not Satisfactorily Run' rated branches are audited within a year.

During the year 474 branches have fallen due for Audit and all 474 branches have been audited. Rating acquired by 474

branches is as under:

Rating Range of Marks now revised Previous range of Marks

Excellent

Good

Satisfactory

Not Satisfactorily Run

>=850 >=750

>700 and <=850 >600 and <=750

>600 and <=700 >500 and <=600

<600 <500

Sl. No. Particulars Position as on

31-3-11 31-3-12 31-3-13 31-3-14 31-3-15 31-3-16

01 Excellent

02 Good

03 Satisfactory

04 Unsatisfactory

05 New Branches

06 Total

310 311 247 320 395 484

196 206 301 310 307 244

21 26 26 03 02 0

- - - - 0 0

12 31 64 71 24 23

539 574 638 704 728 751

Online inauguration of 23 new Branches and launching of e-KYC by Shri Hardayal Prasad, Chief General Manager, State Bank of India, Local Head Office, Hyderabad on 31.3.2016.

Audit to have effective audit of the Branches. During the year 963 Snap Audits have been conducted on Branches.

604 branches have been subjected to Income Audit during the year 2015-16 and income leakage identified and plugged to the extent of Rs 2.36 Crore.

During the year top 25 branches under Gold Loan Segment have been audited in all aspects to ascertain quality of assets and documentation apart from adherence to the systems and procedure as per extant instructions.

As part of internal control system in our Bank, Concurrent Audit is introduced from the financial year 2012-13 as per the policy guidelines issued by NABARD.

Keeping in view the staff availability, the Concurrent Audit is being conducted at 36 branches with the help of three Auditors. In due course, the said Audit will be extended to cover at least 50% of the Credit and other exposures of the Bank, in compliance with the guidelines issued by NABARD.

The Scope of Concurrent Audit is designed to cover (a) handling of cash (b) safe custody of securities (c) exercise of discretionary powers (d) sundry and suspense accounts (e) clearing differences (f) off balance sheet items etc.

The Audit Committee, constituted with one SBI-nominee-director as Chairman and nominee directors of Govt. of India, RBI and NABARD as members has met 4 times during the year and reviewed the Financial Statements, Quarterly Profit & Loss, Balance Sheet etc., of the Bank, audit function, quality of the audit system and transparency and accuracy that the audit system has carried.

Income Audit –

Special Audit of Gold Loan segment:

Concurrent Audit

Audit Committee of the Board

Management Audit

NABARD Inspection under Section 35(6) of the Banking Regulation Act 1949

Branch Expansion

Our Sponsor Bank (State Bank of India) has conducted Management Audit of the Bank during the year, under section 24 A of Regional Rural Banks Act 1976 covering the period from 01.04.2013 to 31.3.2015. The Management Audit Report was duly complied with and compliance report submitted to our Sponsor Bank, State Bank of India, within the stipulated time.

National Bank for Agriculture and Rural Development (NABARD) under Section 35(6) of the Banking Regulation Act 1949 has also conducted Vth Statutory Inspection of our Bank with reference to the financial position as on 31.03.2015.

All the points raised in the NABARD Inspection Report have been duly complied with.

The Bank has opened new Branches at 23 new locations on 31.3.2016 taking the total number of branches to 751 as on 31.3.2016.

38


Composition of Branch network as on 31.3.2016

Metro & Urban

64

8%

Semi Urban

156

21%

Rural

531

71%

Financial Inclusion:

Access to financial services through alternative delivery

channels particularly Business Correspondents (Bank

Mitras) has been a priority area for the Bank. Significant

efforts were made to strengthen the Business

Correspondents in terms of (a) increasing outreach (b)

technology upgradation (c) introduction and stabilization

of the reporting and monitoring system (d) capacity

building (e) building trust on BC model banking among

public to formalize their activities in the rural areas and

more importantly (f) increasing Bank Mitra transactions so

as to enhance the commission for Bank Mitras.

1880 Bank Mitras are operating in 4444 villages which do

not have a formal banking outlet of any Bank. Out of

4444, 825 villages are with population of 2000 and

above and remaining 3619 villages with a population less

than 2000.

As at the end of FY 2015-16, 44,98,246 Basic Savings

Bank Deposit Accounts were opened, of which 29,04,461

accounts were opened by Bank Mitras and 15,93,785

accounts through Brick and mortar branches, with an

aggregate balance of Rs 258.27 Crore. All the accounts

are hosted in CBS. Bank Mitras have also mobilized

7,02,738 micro insurance / social security schemes from

the villages.

Various products/transactions viz., Savings, Remittance,

Recurring Deposits, Insurance and Self Help Groups have

been rolled out through Business Correspondent Agents

(BCAs) / Bank Mitras to provide access to Banking and

Financial Services to the people living in the unbanked

villages.

The focus on Bank Mitras during the year has reflected in

the following statistics:

· No. of transactions carried out by Bank Mitras during

the year went up by 66%. Total number of transactions

during the year was 3686180 as against 2210180

during previous year.

· Total amount involved in the transactions has also

gone up by 44% i.e., from previous FY's Rs 277 Crore

to Rs 398 Crore during the year.

· Zero balance accounts has come down from 74.60%

during previous FY to 32.16% during the year.

FI operations

Pradhan Manthri Jan Dhan Yojana (PMJDY)

The entire Financial Inclusion (FI) operations at BCAs work

on the principle of Biometric verification of the

beneficiaries by using 2085 handheld devices /micro

ATMs and are online, hitting our CBS server instantly

through Third Party Integration, which facilitates updation

of transactions carried out by BCAs on real time basis, in

CBS Server, via TSPs' Servers.. All these devices have the

features stipulated by UIDAI. For more transparent Bio-

Metric payment system, the Bank has started the process

of seeding Aadhaar numbers for both the old and new

accounts to initiate the Aadhaar Enabled Payment System

(AEPS). The Bank has already seeded 18,53,871

accounts with Aadhaar and placed in NPCI mapper.

After the launch of Pradhan Mantri Jan Dhan Yojana

(PMJDY) on 15.08.2014 by the Hon'ble Prime Minister of

India, the Bank has opened 2.87 Lakh Basic Savings Bank

Deposit Accounts taking to total to 14,84,414 PMJDY

Accounts and almost saturated all the Households in

4,444 villages through 1,880 Business Correspondent

Agents (BCAs) and 751 Brick and Mortar branches.

PMJDY is a wonderful and huge step which seeks to

improve the state of Financial Inclusion which has

already been on in India. The salient features of Accounts

opening under PMJDY, which makes the initiative more

forward looking vis-à-vis previous initiatives of GOI in

Financial Inclusion are providing Basic Savings Banking

Accounts with (a) overdraft facility (b) RuPay Debit card

and (c) Personal Accidental Insurance coverage of Rs 1

Lakh to the card holder.

We have issued 793627 RuPay Cards to PMJDY account

holders during the year and are targeting to issue RuPay

Cards to remaining PMJDY account holders loaded with

insurance coverage and overdraft facility during the year

2016-17. NABARD was kind enough to sanction a grant

assistance of Rs.2.00 crores, i.e., 80% of the total project

cost of Rs.2.50 crores for distribution of 10 lakh RuPay

Debit cards to those customers only whose accounts have

been opened or being opened under Financial Inclusion

Plan (FIP) submitted by the Bank and not for all the existing

account holders vide their letter No. NB.APRO.HYD/

5035/FID/FI-6(e)/2014-15 dated 21.10.2014.

39


Preparation of Financial Inclusion Plan (FIP)-2016-

2019

Direct Benefit Transfer - Aadhar Payment Bridge

System (APBS):

Aadhar Enabled Payment System (AEPS):

As per the RBI instructions, the Bank has prepared the

Financial Inclusion Plan for three years i.e 2013-2016.

The plan targets for the next three years have been

disaggregated upto both the Regional Offices and Branch

level. Similar Plan will be prepared for the next three years

2016-19.

Ultra Small Branches (USBs) in villages having population

of 2000 and above

As per the GOI and RBI guidelines, the Bank has 493 USBs

as at the end of the current financial year in the FI villages

having population of 2000 and above. The Business

Correspondent Agents operate from these USBs. The

USBs are provided with minimum required space,

furniture, stationery / registers for enrollment and

transactions maintenance. We have also assigned a

common signage to these USBs and provided the boards

for the Bank identity.

These USBs will turn into full fledged brick and mortar

branches in the coming months depending on the volume

of business garnered. Bank has provided the requisite

infrastructure like Tables / Chairs / Almirahs. The Bank has

also assigned a common signage to these USBs and

provided the boards for the Bank identity.

Our Bank has been allotted all the 8 operating districts

viz., Srikakulam Vizianagaram, Visakhapatnam,

Khammam, Warangal, Nalgonda, Mahabubnagar and

Medak for DBT Rollout.

We have successfully on boarded to Aadhar Payment stBridge System (APBS), being the 1 RRB from the State

Bank group in the Country to implement Direct Benefit

Transfer (DBTL) for LPG subsidy. We have so far received

LPG subsidy benefit to the 2591376 customers amounting

to Rs.64.64 crores.

Aadhar Enabled Payment System was implemented by our

Bank during the year and transactions were enabled in the

month of October 2015. Now all the customers holding

Aadhar seeded accounts can avail banking services at

any CSP/Branch of the bank. (Out of 1880 CSPs). The

total number of successful transactions are 49,135 as on

31.03.2016.

In order to provide uninterrupted service to FI customer's

connectivity and other back end infrastructure continuous

monitoring mechanism is put in place. This has brought

improvement in FI transactions being carried out by CSP's.

The following is the FI transaction data for the financial

year 2015-16.

FI-CSP connectivity

Transaction type No of Transactions Amount (Rs)

Deposits 22,31,202 1,49,39,04,959

Withdrawals 1,454,978 1,48,69,39,312

FI (CSP)Transactions for the year 2015-16

Financial Literacy Centres (FLCs):

Financial Literacy Awareness Camps (FLACs)

With a prime objective to impart financial literacy in the

form of simple messages like 'why save with Banks, why

borrow from Banks, why repay the loans in time' the

Reserve Bank of India has advised all the Banks to set up

one Financial Literacy Center (FLC) each in the operating

districts of the Bank. The Bank has opened 8 such

Financial Literacy Centres in 8 districts viz., Srikakulam

Vizianagaram, Visakhapatnam, Khammam, Warangal,

Nalgonda, Mahabubnagar and Medak in tune with the

guidelines issued by the NABARD. The NABARD has

sanctioned Grant Assistance of Rs.32.00 lacs @Rs.4.00

lacs per FLC for operation of these 8 FLCs. The Bank has

posted retired Bank staff to look after the affairs of FLCs as

counselors. These FLCs are relocated at the district centres

and housed in the Regional Offices.

The Bank has taken several Financial Literacy initiatives by

organizing 1856 Financial Literacy Awareness Camps

(FLACs) /Grama Sabhas with Magic Shows, Street Plays

and Local Folks to educate the rural people to avail the

Banking and Financial Services at their door steps through

Business Correspondent Agents.

The publicity material in the form of pamphlets, brochures

and banners were distributed during the camps to spread

the message of financial awareness among the rural

people. The Bank has appointed Nodal Officers at each

Regional Office exclusively to monitor, supervise the FI

activity and increase business. The National Bank has

sanctioned Grant Assistance of Rs.44 lakhs lacs under FIF

for organizing these FLACs.

40


FI Awareness Programme conducted in USB Ragolu, Srikakulam RO.

Project Director, DRDA, DDM NABARD, LDM have participated in the

programme. Srikakulam RM Shri GSN Reddy is seen in the picture.

Board of Directors being given a demo of Financial Inclusion operations

through Micro ATM in Araku Valley Branch on 8.8.15 during Bank Mitra

customers meeting. Seen in the picture from left are our Chairman Shri V.

Narasi Reddy, Shri V. Hanumantha Reddy, GOI non-official director, Shri C.L.

Naidu, GOI non-official director, Shri S. Chellapandi, RBI nominee director

and Shri KV Maruthi Rao, SBI nominee director.PMJJBY and PMSBY

APGVB is implementing Pradhan Mantri Jeevan Jyoti

Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha

Bima Yojana (PMSBY) at all our Branches. All our

Bank's account holders are welcome to enroll

themselves for the above two Social Security

Schemes. These two schemes will enhance the level

of insurance penetration in the country and would

serve the cause of extending social security cover at a

very affordable cost. Please see the attachments for

full details and approach our Bank's Branch where

you have account, for enrollment.

Handing over of PMJJBY benefit to the nominee (ST women) along with 2 children R/o Vallur village at Jadcherla Branch on 5-10-2015. P Raju, RM, J Venkatesh, Nodal Officer (FIC), B Ravikanth, BM are seen in the picture

Smt. Kavitha

Traditional folklore singing and advocating our Bank's Services and

products to the villagers in the form of Voggu Kathalu organized FLC,

Mahabubnagar.

Meeting with Bank Mitra and Villagers in Antikonda Village, Vizianagaram

RO, at a height of 5 KM from sea level. Addressing the gathering is Mr A.

Tatayya, Branch Manager, Seethampet Branch, Parvathipuram RO.

41


Information Technology

RuPay Cards

NPCI Award

All 751 branches, Head Office and eleven Regional stOffices are on CBS Platform as at the end of 31 March

2016. 23 branches opened during the year 2015-16 have

commenced operations on CBS on the day one.

As at the end of 2015-16, total number of RuPay Kisan

Credit Cards issued reached to 229411 and RuPay ATM

Cards (both personalized and non personalized) reached

to 218026 apart from 793627 RuPay Cards to PMJDY

Account holders, taking the total cards to 1241064.

Our Bank has bagged Special Award in recognition and

appreciation of highest number of transactions in

National Financial Switch (NFS) ATM Network under the

category of RRBs. An eminent and independent panel of

jury constituted by NPCI has built the framework for

monitoring the evaluation process. RBI Dy Governor Mr R

Gandhi, who was the Chief Guest in the National

Payments Awards Function 2015, organized by NPCI on

22.12.15 in Mumbai, presented the Special Award to

APGVB for excellent performance in their product NFS

The NEFT & RTGS facility operational in

our bank since February 2013 has become immensely

popular and is a widely used facility by our customers and

other organisations. The following are the transactions

carried out in the financial year 2015-16.

RTGS & NEFT:

NEFT & RTGS Transactions in the year 2015-16

Type of Inward Outward

Transactions No of Transactions Amount (Rs) No of Transactions Amount (Rs)

NEFT 47,01,219 2667,45,81,638 2,87,918 1396,31,16,921

RTGS 7816 1137,85,76,400 7627 966,64,05,803

As explained above, we have been placing paramount

importance to introducing technology in all areas of

operations including Alternate Delivery Channels. No. of

transactions carried out through Alternate Delivery

Channels has increased to 19.3% from last year's share of

8.1%. Our motto is to increase the usage of Alternate

Delivery Channels in the years to come to become more

digital, which has been the constant endeavor of our

Sponsor Bank.

New Initiatives implemented during 2015-16

ATM: Two onsite ATMs were installed and enabled for

both acquirer and issuer transactions. On boarding as

acquirer for ATM transactions on NPCI platform was

completed. This enables any bank customer to avail ATM

facility at APGVB ATMs. The following are the transactions

carried out in the financial year 2015-16.

ATM transactions in the year 2015-16

IMPS: IMPS facility has been extended to our customers

on NPCI platform as Beneficiary Bank. Our customers can

receive remittances through IMPS mode to their accounts.

IMPS facility has been enabled in our bank on

22.01.2016. The following are the transactions carried

out in the financial year 2015-16.

IMPS transactions in the year 2015-16

NACH: Our customers have been extended ECS debit

clearing services as our bank has on boarded as NACH

sponsor bank on NPCI platform. The following is the

volume of transactions in the financial year 2015-16.

ABPS & ACH transactions in the year 2015-16

Type of Transactions Transactions

No.of Amount (Rs)

As Beneficiary 570 1,02,02,648Bank


No.of Amount (Rs)

ATM-ISSUER 2736866 536,53,15,500

ATM-ACQUIRER 10687 2,00,35,200


No.of Amount (Rs)

ACH-Cr 1136372 42,87,31,534

APBS 2591376 54,64,15,917

42


Own ATM - Our Bank has installed first own ATM in PR Pally X Roads Branch (Sangareddy RO) on 12.1.2016. Chairman operating the ATM. Shri V Hanumantha Reddy, GOI Non-official director looks on.

IT Team celebrating IDRBT Award- Aiming for another Success

43


Shri Hardayal Prasad CGM, SBI, LHO, Hyderabad Interacting with Bank Mitra sitting in Mobile ATM

Cheque Truncation System: Our bank is live on Cheque

Truncation system (CTS) of NPCI on the southern grid. Our

customers' cheques are cleared within 24 hours from the

time of presentation due to participation in CTS clearing.

The following are the transactions carried out in the

financial year 2015-16.

CTS Clearing transactions in the year 2015-16

Point of Sale Machines (POS): RuPay ATM Debit card

holders of our bank can use their debit cards at merchant

outlets as our bank has on boarded as issuer on NPCI

platform. POS transactions for our Rupay Debit cards were

enabled on 15.04.2015 and the following are the

transactions carried out in the financial year 2015-16

POS transactions in the year 2015-16

SBI cash @ POS facility: SBI POS machines installed at

197 branches to facilitate customers of SBI to avail cash

withdrawal facility in our branches. The following are the

transactions carried out in the financial year 2015-16

SBI cash @ POS transactions in the year 2015-16

e-KYC:

Biometric Authentication System – B@NCS24:

Our bank customers with Aadhar number issued

by UIDAI can avail of e-KYC facility at our branches. This

facility is extended by on boarding on UIDAI and NPCI

platforms. This saves the customer a lot of effort in

procuring copies of documents for identity and address

proofs.

To

strengthen and enhance security of CBS platform

B@NCS24, biometric authentication system for

B@NCS24 users has been introduced. This increases the

accountability of the B@NCS 24 users and safeguard the

bank's customers from frauds and misappropriations

perpetrated by insiders.

The following new initiatives are in advanced stages of

implementation.

Internet Banking.

Mobile Banking.

Leased line connectivity to branches to

facilitate higher bandwidth

q

q

q

Cross Selling

SBI Life Insurance

The Bank is a corporate agent of SBI Life Insurance

Corporation Limited, to meet the life insurance needs of

the Bank's customers, as part of Financial Inclusion apart

from earning non-interest income. The Bank stood No.1

in the country by mobilizing a New Business Premium

(NBP) of Rs.14.67 crores during the year 2015-16 and

earned a commission of Rs.2.00 cr. We have emerged as

No.1 in mobilizing highest premium amount SBI

sponsored RRBs during the year 2015-16.

The performance highlights are as under:

We have also achieved a business share of 21% of State

Bank Group RRBs in both the premium and business

commission for the year 2015-16.

We have commenced SBI General Insurance Business

during the year 2015-16 as a Corporate Agent and

mobilized a business premium of Rs 92.70 lakhs during

the year. Marketed two Insurance products viz., group

Health Insurance Scheme and Group Personal Accidental

Insurance Scheme apart from insurance to the Assets

financed by the Bank to the eligible and willing customers.

We have emerged as No.1 among all SBI sponsored RRBs

during the year 2015-16.

SBI General Insurance


No.of Amount (Rs)

1

Outward Clearing 55400 728,28,79,186

Inward Clearing 26156 621,49,59,846


No.of Amount (Rs)

As Beneficiary Bank 1,40,972 10,09,15,124


No.of Amount (Rs)

As Beneficiary Bank 99 37,400

Parameter Budget for2015-16

Achievement

New Business Premium 10.00 14.67

Business commission 1.00 2.00

44


Security Measures – Installation of CCTVs and

Burglar Alarm Systems

Project Ambiance

Physical security systems that effectively protect the Bank

assets, customers, and employees assume paramount

importance, in the face of increasing incidence of

robberies, mischief. The Bank has provided CC Cameras

& Burglar Alarms to all 751 branches of the Bank.

Providing facelift and pleasant ambiance at Branches has

been one of the focused areas of the Bank as part of

enhancing customer service and satisfaction. The Bank

has spent Rs 1.79 Crore during the year 2015-16 and 70

Branches have been given for facelift.

Construction of own building

Customer Service & Complaints handling

Construction of own buildings at our own sites in

Khammam, Mahabubnagar, Nalgonda & Sangareddy

districts are in progress.

All Branches are conducting customer meets every quarter

and important customers are invited. Their views and

opinion were solicited in order to take corrective steps,

wherever necessary. Regional Managers concerned are

attending the customer meetings whenever feasible.

The Bank has put in place complaint-handling-policy to

redress the grievances of the customers and improve the

quality of customer service.

The following system of monitoring of complaints for their redressal and submission of compliance is in vogue:

Nature of complaint Officer in charge at charge atBranch RO

Officer in At Head Office level

General Complaints (other than vigilance Branch Regional Chief Manager (Board) under the nature) & complaints from / through the Manager Manager control of General Manager - IIIBanking Ombudsman

Complaints of vigilance nature Branch Regional Chief Manager (Vig.) under theManager Manager control of General Manager - I

Another milestone reached in the history of APGVB. Its Nalgonda Regional Office is going to have own building in due course. Foundation stone was laid by

the Nalgonda District Collector and Magistrate Shri Satyanarayana Reddy, IAS on 5.12.15 in the august presence of our Bank's Chairman Shri V. Narasi Reddy.

Our Bank has been in existence in Nalgonda district for the last 40 years (as Nagarjuna Grameena Bank till 2006 and as APGVB thereafter) and been an

integral part of credit delivery system particularly in rural areas and developed intimate and irrevocable banking relationship with the people of Nalgonda

district.

45


Customer Complaints: Status as on 31.03.2016

SNo Particulars No.

1 No. of Complaints pending at the Beginning of the year 03

2 No. of Complaints received during the year 2015-16 49

3 Total Complaints 52

4 No. of Complaints Redressed / Disposed-off during the year 52

5 No. of Complaints pending at the end of the year Nill

For complaints received through Banking Ombudsman, General Manager-III is designated as “Principal Nodal Officer” of

our Bank at Head Office.

The position of complaints received through / from Banking Ombudsman during the year.

* Banking Ombudsman Compliant received on 21.03.2016. Reply sent on 31.03.2016 and was closed on 04.04.2016 by BO, RBI.

SNo Particulars No.

1 No. of Complaints pending at the Beginning of the year 02

2 No. of Complaints received during the year 2015-16. 39

3 Total Complaints 41

4 No. of Complaints Redressed / Disposed-off during the year 40

5 No. of Complaints pending at the end of the year 01*

Whistle Blowing Policy with an objective of providing an

avenue for raising concerns related to frauds, corruption

or any other misconduct is also in place. The Bank has

also installed a Toll Free Number to receive feedback from

the customers on the Bank's services.

The Bank implemented the Right to Information Act, 2005

in letter & spirit setting out the practical regime of right to

information for citizens to secure access to information

under the control of bank in order to promote

transparency and accountability in the working of bank's

various functionaries.

At the Branch level, the Branch Manager has been

designated as Central Assistant Public Information Officer

while the Regional Manager concerned is designated as

the Central Public Information Officer. At Head Office

level, the Law Officer is the Central Assistant Public

Information Officer and the Chief Manager (Audit &

Inspection) is the Central Public Information Officer. The

General Manager – III has been designated as Appellate

Authority in the Bank, under RTI Act.

During the year 2015-16, the Bank has received 171

Right to Information Act

applications and 19 appeals and disposed off all

applications and appeals within the stipulated time frame.

As a significant step towards BPR with the approval and

guidance from our Sponsor Bank (State Bank of India), the

Bank has established a Liabilities Centralized Processing

Centre (LCPC) on 28th Oct, 2013, which seeks to handle /

update and maintain the Liabilities accounts (Savings

Bank and Current Accounts) opened across all Branches,

at a single centralized place, leveraged by Core Banking

Solutions.

A) Verification of and strict compliance to KYC norms

including obtention of valid documents;

B) Feeding of all key parameters / data pertaining to SB

and Current Account Holders into the Database

including scanning and uploading of Photographs

and specimen signatures;

Business Process Reengineering (BPR)- Liabilities

Central Processing Centre - LCPC

The important aspects that are envisaged to be

achieved through LCPC are

46


Officers S-IV 43

Officers S-III 145

Officers S-II 512

Officers S-I 1073

Office Assistants 1069

Office Attendants 109

Total 2951

C) Storage of physical documents (opening forms

including KYC documents) at a centralized place

called Document Archival Centre (DAC) for future

use.

D) Issuing personalized cheque books to customers

through cheque printing agency through postal

department

Presently, 203 Branches have been linked including all

Scale IV branches, all branches of Ashoknagar Region,

and all Scale III branches of 6 Regions Viz. Sangareddy,

Mahbubnagar, Nalgonda, Khammam, Bhadrachalam

and Warangal with LCPC for Savings bank accounts and

Current accounts. The systems and procedures of

processing has been redesigned and stabilized during the

year and productivity has been increased. So far, we have

processed 155250 account opening forms and

completed KYC compliance.

The process of centralized printing and issue of

personalized cheque books is under process and expected

to be implemented during next year.

As the end of FY 2015-16, the staff strength (excluding

those who exited the Bank service in the month of March

2016 on account of retirements / resignations) and its

composition is as under:

Human Resource Management

During the year, 147 staff members have retired from the

Bank's Service. 152 staff members have resigned, three

staff members were removed from service. Five Staff

members expired during the year.

Since 2009-10, the Bank has been recruiting staff through

IBPS, as per manpower assessment and requirement stundertaken as on 31 March of every year in terms of

Thorat Committee recommendations, presently as per

Mitra committee recommendations approved by GOI.

Last six years have witnessed mass retirements of those

staff members who had joined erstwhile RRBs in late

1970s and in 1980s.

Accordingly, based on the business volumes as on

31.3.2016, the Bank has taken up recruitment exercise for

augmentation of staff in various grades, including lateral

recruitment of Scale-II and Scale-III Officers in General

Banking and with specialization in Law, IT, Marketing,

Treasury, CA etc.

Recruitments

As at the end of FY 2015-16, there are 107 Scale-II

Officers and 20 Scale-III Officers directly recruited from

the market laterally.

109,4%

1069,36%1773,60%

Officers O.Assistants O.Attendants

Grade No. of Candidates recruited during the year

1 Office Assts 166

3 Officers S-I 255

4 Officer S-II 22

5 Officer S-III 5

448

47


Conducted Quiz on Bank's Circular instructions for all Staff members on 31.3.2016 on the occasion of Bank Day. Warangal Region emerged

the Winner and Khammam RO the Runner Up.

On the occasion of 10th Anniversary on 31.3.2016, our Bank has conducted quiz for our Stafff members on Circular instructions and Banking

for all stafff members. Three toppers from each RO, have come to Head Office (FIC, Hyderabad) participated in Semi Finals and Finals. Four

teams from Khammam, Vizianagaram, Warangal and Parvathipuram have reached Finals and at the end of Finals, Warangal team emerged

the Winner and Khammam Team the Runner Up. Chairman Shri V Narasi Reddy Vangala , General Manager-I Shri Y.N. Sukumar, General

Manager-II Shri T.V. Krishna Reddy and General Manager-III Shri S. Prakash Kumar were present during the programme and presented the

mementos to the Winners, Runners up and participants.

Chairman introducing Shri P Nageswara Rao, Branch

Manger, Tholapi Branch, Srikakulam RO, who qualified as

Chairman’s Club Member, to the gathering in

Vizianagaram.

Chairman and GMs made a practice to have pre-dinner talk with trainees at SLC in a very informal way, interacting with them about the Bank, their career etc.

Chairman had such meetings with Officers S-I promoted recently.

48


The Bank's in house Learning Centre has been working

continuously to train and re-train the new recruits

imparting skills and supply inputs in all areas to equip

them to handle the day to day functions well.

All the recruitments have been completed through the

Common Written Test including interviews conducted by

IBPS.

Keeping in view the Bank's policy of giving promotions

promptly to staff, we have taken up promotion exercise in

terms of manpower assessment as on 31.3.2015 and

promoted as many as 79 people in various cadres to next

higher grade. Written Test for promotion was arranged

through IBPS online from this FY onwards.

Promotions

Promotions

The Bank has fulfilled the statutory requirement of giving

pre-promotion training to all SC/ST candidates, eligible

for promotion, prior to written test. This has enabled the

SC/ST candidates to prepare themselves better, to take on

the written test.

The Bank had laid down a Training Policy which envisages

Training - Staff Learning Centre

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2011

-12

2012

-13

2010

-11

2013

-14

2015

-16

500

0

1000

1500

2000

2500

3000

541

818

1414

1241

142

Newly Recruited

Old staff

2014

-15

3500

1707

2277

2262

2215

2160

2060

1953

1813

1659

1502

1429

1244

283

1 Officer S-I 27

2 Officer S-II 24

3 Officer S-III 21

4 Officer S-IV 7

5. Office Asst. 0

79

Promoted to No. of Posts

training to all staff members, atleast once in three years.

During the year, APGVBSLC has conducted 45 Training

programmes and provided training to 1087 staff

members. The participants include all cadres of staff.

The Bank has also deputed 62 staff members, essentially

in the higher cadres, to external training institutions like

BIRD (Lucknow), RBI (CAB, Pune), BIRD (Mangalore), State

Bank Learning Centres on important subjects like AML,

ALM, KYC, RTI Act, Treasury Management, Business

Development etc.

Mediclaim policy

The Bank has renewed the Group Medi Claim Floater

Policy with New India Assurance Company Limited, after

following CVC guidelines. The Floater Policy covered the

Hospitalisation expenses upto Rs 2 Lakh for the Staff and

their spouse. The Scheme, apart from facilitating hassle

free admission into the hospital immediately and payment

of cash, makes the settlement of hospitalization expenses

become much easier, saving administrative time

considerably.

Gratuity and Leave Encashment Fund

The Bank has taken care of provisional requirements in

respect of Gratuity. The total corpus as on 31.3.2016 is to

the tune of Rs 150,97,41,837 (Rupees One Fifty Crore

Ninety Seven Lakhs Forty One Thousand Eight Hundred

and Thirty Seven Only) towards Gratuity and Rs

81,12,60,502 (Rupees Eighty One Crore Twelve Lakhs

Sixty Thousand Five Hundred and Two Only) towards

Leave Encashment.

Industrial Relations

The Management and Officers Association and

Employees Union have worked in tandem for the welfare

of the staff members and business development, sorting

out amicable solutions for routine issues that cropped up

during the year. Cordial and amiable working

atmosphere has prevailed during the year.

Welfare of SC/ST and OBC Employees

The Bank has maintained cordial relations with the SC/ST

Welfare Association and OBC Welfare Association and

complied with statutory requirements in all aspects of

recruitments, promotions etc. The Bank has held regular

meetings with the representatives of Welfare Associations

Staff welfare measures

0049


International Women's Day was celebrated on a grand thscale on 8 March 2016 – Smt G Neelima, Sr Civil Judge cum

Secretary, Dist Legal Services Authority, Warangal was

invited as Chief Guest on the occasion and felicitated.

Sports and games for women employees and winners were

presented with mementoes. Upon our request, Dr K

Swaroopa Rani, an eminent gynecologist addressed our

lady staff on Stress Management and balancing the career

and profession on the occasion of IWD.

50

we are with you!

Annual Report 2015-16

and Liaision Officers to redress their grievances.

The Bank has taken all steps to keep up the morale and

motivation of the employees.

Settlement of Terminal Benefits

The Bank has made a policy that all terminal benefits are

settled on the date of retirement of staff members. The

process begins two months in advance of retirement to

ensure that all formalities are completed to make

payment on the date of retirement.

Payment of Ex-gratia

The Bank has implemented the GOI instructions,

contained in their notification No: F.20/5/2003—RRB

dated 9.6.2006, on payment of ex-gratia in lieu of

appointment on compassionate grounds for the legal

heirs of the bereaved staff members and also to the staff

who are chronically sick and immobile on sick grounds.

The cadre-wise ceiling of ex-gratia and total amount paid

are as under:

Bifurcation of APGVB and amalgamation of five

districts with Deccan Grameena Bank (now

renamed as Telangana Grameena Bank)

I. Government of India (Department of Financial

Services, MoF) had issued two Notifications (a) No. thF.No.1/6/ 2012-RRB(AP) dated 20 October, 2014 and

th(b) No. 1/6/2012-RRB (Telangana) dated 20 October,

2014, re-organizing the area of operation of APGVB

and Telangana Grameena Bank.

Ii. Government of India vide its notification No: F.No:

15/15/2015 dated 16.7.2015, a Committee has been

const i tuted to discuss, f inal ise and submit

recommendations on re-organisation of APGVB and

Telangana Grameena Bank, with the support of SBI Caps.

The Committee has submitted their recommendations to

NABARD for onward submission to Government of India.

1 Officers Rs 8 Lakhs Rs 16,00,000

2 Clerical Staff Rs 7 Lakhs -

3 Sub-Staff Rs 6 Lakhs -

Total Rs

Grade Ceiling of Amount paid Ex-gratia during the year

16,00,000

Further communication from GOI is awaited

The Board of the Bank is constituted by

(a) Chairman of the Bank

(b) two non-official directors appointed by Government

of India

(c) one nominee director each from Reserve Bank of

India and NABARD

(D) two nominee directors from Sponsor Bank

(E) two nominee directors from Government of Andhra

Pradesh, with Chairman of the Bank as Chairman of

the Board.

Board Meeting Rules stipulate that the Board meets

minimum six times a year, at least once in a quarter.

Minimum quorum for the Board Meeting to transact

business is four directors and no meeting was adjourned

for want of quorum.

During the intervening period of two Board Meetings, as

and when warranted, the Board has transacted the

business by means of Circulation of 25 agenda notes

during the year, which were confirmed by the Board in the

following Meetings.

The Board has undergone the following changes in the

composition on account of transfer of officials

· Shri Y. Haragopal, Asst. General Manager,

NABARD, RO, Hyderabad , nominee director on the

Bank's Board has been replaced by Shri V.S.Gupta ,

Deputy General Manager, NABARD, TSRO,

Hyderabad during the year.

· Shri L. Premachandra Reddy,IAS principle secretary,

Finance (IF) Govt. of A.P State Government

nominee director on the Bank's Board has been

replaced by his successor Smt. K. Sunitha, IAS,

Secretary, Finance (IF) , Govt. of A.P during the year.

The Bank places on record the invaluable services

rendered by the Directors Shri Y.Haragopal, Asst.

General Manager, NABARD, RO, Hyderabad and Shri

L.Premachendrareddy,IAS, principle secretary, Finance

(IF) Govt. of A.P who left the Board during the year:

Board

51


Acknowledgements

The Board of Directors of the Bank would like to express

their sincere gratitude for the continued trust and

patronage received from the customers who have stood

with the Bank all through. The feedback received from

customers by way of suggestions / complaints on the

service element have helped the Bank to take corrective

measures and new initiatives to improve our efficiency

levels.

The Board takes immense pleasure in expressing their

gratitude for the guidance and cooperation received from

the Sponsor Bank, Government of India, Government of

Andhra Pradesh, Reserve Bank of India, NABARD, other

Financial Institutions and Banks for their unflinching and

valuable support to the Bank from time to time.

Further, the Board would like to conveys its gratitude to

Shri Hardayal Prasad, Chief General Manager, State Bank

of India, Hyderabad LHO; Shri Giridhara Kini, General

Manager (Network-I) Shri Aswin Mehta General Manager

(Network-II); Shri Hare Krishna Jana, General Manager

(Network-III) Shri S. Ganesan, DGM (RRBs & LLB), State

Bank of India, Corporate Centre, Mumbai, Shri P. Venkata

Rao, AGM (RRBs), State Bank of India, Hyderabad LHO.

They shared their knowledge, their ideas, and numerous

tips all of which were extremely useful in taking this Bank

forward. The Bank is indebted to these executives for their

constant handholding.

We will be failing in our duty if we do not acknowledge the

help extended by NABARD and State Bank of India, Local

Head Office, Hyderabad in sparing their Officers to be

members of the Selection Committees constituted for

recruitments and promotions.

The Board conveys its gratitude to Shri R.N.Dash,

Regional Director, Reserve Bank of India, Hyderabad; Shri

N Kr i shna Mohan, Bank ing Ombudsman,

RBI,Hyderabad for their support.

The Board also acknowledges the great support and

affectionate guidance from Shri VVV.Sathyanarayana

and Harish Java, Chief General Managers, National

Bank for Agriculture and Rural Development, Hyderabad,

and their team of General Managers Shri P.N. Satya

Prasad and Shri Nageswar Rao

The Board also expresses sincere thanks to all the District

Collectors, Project Directors of DRDA, IKP, DWMA, SC/ST

BC Minorities and Housing Corporations of Srikakulam,

Viziangaram, Visakhapatnam, Khammam, Nalgonda,

Warangal, Mahabubnagar and Medak for their support

and encouragement.

Attendance of Directors at Board Meetings during the calendar year 2015

S. No. Name of the Director WEF No. of Meetings No. of Meetings

held attended

1 Shri V. Narasi Reddy 21.07.2014 6 6

2 Shri CL Naidu 28.06.2013 6 5

3 Shri V. Hanumantha Reddy 27.09.2013 6 6

4 Shri S. Chellapandi 22.07.2014 6 5

5 Shri V.S.Gupta 03.08.201566

Shri Y Hargopal 03.05.2013

6 Shri T.V. Reddy 28.07.2014 6 3

7 Shri KV Maruthi Rao 24.10.2014 6 3

8 Smt K.Sunitha,IAS 27.06.2015nil6

Shri L Prema Chandra Reddy, IAS 13.12.2013

9 Smt. V. Karuna, IAS 11.01.2015 6 nil

52


The Board would like to gratefully acknowledge the

support rendered by our Technology Service Providers viz.,

M/s C-Edge Technologies, Mumbai, M/s Irix Technologies

and M/s National Payments Corporation of India.

Apart from our customers, the support received from the

Government Departments / Institutions was immense and

augmented our resources. The Board also wishes to thank

Andhra Pradesh Pollution Control Board, Hyderabad for

their patronage. We also place on record our sincere

thanks to AP Industrial Development Corporation, AP

Trading Promotion Corporation, AP Markfed and

Commissioner of Endowments, GOAP for their

remarkable patronage.

The Board extends its heartfelt gratitude to M/s Bhaskar

Rao & Co, the Central Statutory Auditors of the Bank and

other Statutory Branch Auditors for their cooperation in

For and on behalf of Board of Directors of


(V. Narasi Reddy)

Chairman

completing the Audit of the Bank's Financial Year 2015-16

in time.

The Board also expresses its gratitude to all Public

Relations Officers, Press and media for their cooperation

in giving wide publicity for the Bank. The Board also

thanks the Officers Association, Employees Union and

SC/ST/OBC Welfare Associations for their constructive

role played in overall development of the Bank.

Words are not adequate to recall the excellent

performance, sense of involvement, ownership and

dedicated services rendered by each and every staff

member in achieving the sustained business growth and

profit. Amazing work by the individuals is always valued

and kept on record.

53


54


Balance SheetProfit & Loss A/c

SchedulesNotes to Accounts

Performance in Figures


55

56

INDEPENDENT AUDITORS' REPORT

M Bhaskara Rao & Co.Chartered AccountantsTo

The Shareholders


Report on the Financial Statements

1. We have audited the accompanying financial statements of Andhra Pradesh Grameena Vikas Bank which comprise the

Balance Sheet as at March 31, 2016, and Profit and Loss Account and the cash flow statement for the year then ended, and a

summary of significant accounting policies and other explanatory information. Incorporated in these financial statements are

the returns of twenty branches audited by us and 708 branches audited by branch auditors. Panel of the branch auditors were

approved by National Bank for Agriculture and Rural Development (NABARD) and intimated to the Bank. The branches audited

by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank

by the NABARD. Also incorporated in the Balance Sheet and the Statement of Profit and Loss are the returns from 23 branches

which have not been subjected to audit. These unaudited branches account for less than 1% per cent of advances,1% per ce n t

of deposits, 1% per cent of interest income and 1% per cent of interest expenses.

Management’s Responsibility for the Financial Statements

2. The Bank’s Board of Directors is responsible for preparation of these standalone financial statements that give a true

and fair view of the financial position, financial performance and cash flows of Bank in accordance with the applicable

provisions of Regional Rural Bank Act, 1976, Banking Regulations Act, 1949, applicable guidelines of Reserve Bank of India

(RBI) / NABARD, accounting principles generally accepted in India, including the Accounting Standards issued by Institute of

Chartered Accountants of India (ICAI). This responsibility also includes maintenance of adequate accounting records for Safe

guarding the assets of the Bank and for preventing and detecting the fraud and other irregularities; selection and application

of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design,

implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the

accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial

statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in

accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require

that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the Bank’s preparation and fair presentation of the financial statements in order to

design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the

overall presentation of the financial statements.

Auditor’s Responsibility

57


For M Bhaskara Rao & Co.Chartered Accountants

Firm Registration Number: 000 459 s

V K MuralidharMembership Number: 201570

Hyderabad, May 20, 2016

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanations given to us:

i. The Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary

particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March

2016 in conformity with accounting principles generally accepted in India;

ii. The Profit and Loss Account, read with the notes thereon shows a true balance of profit in conformity with

accounting principles generally accepted in India, for the year covered by the account: and

iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.

Emphasis of Matters:

7 We draw attention to the following Notes to the Financial Statements:

a. Schedule 18 (II) (9) regarding disputes with income tax departments over the tax demands raised by the income tax

department. For the reasons stated there in the impact, if any, on the financial statements will be recognised in the

year of settlement of such disputes

b. Schdule 18 (10) Regarding actions initiated by classification of advances

Report on Other Legal and Regulatory Requirements

8. The Balance Sheet and Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third

Schedule to the Banking Regulations Act, 1949.

9. Subject to the limitations of the audit indicated in paragraph 1 to 5 above and subject to the limitations of disclosure

required therein, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief, were

necessary for the purposes of our audit and have found them to be satisfactory.

b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.

c. The returns received from the offices and Branches of the bank have been found adequate for the purposes of the

audit.

d. The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of

account and the Returns.

e. In our opinion, proper books of account as required by Law have been kept by the Bank, so far as appears from our

examination of those books.

f. The Reports on the financial statements of the Branches audited by the Branch Auditors have been dealt with in

preparing our Report in the manner considered necessary by us.

10. In our opinion, the Balance Sheet, Profit and Loss Account and cash Flow Statement comply with the applicable

accounting standards.

58


Place: Ramachandrapuram, Medak DistDate: 20th May 2016

As per our report of even dateFor M.Bhaskara Rao & Co.,Chartered Accountants

(Rs in '000s)

For Andhra Pradesh Grameena Vikas Bank

(V.K.Muralidhar) (S. Prakash Kumar) (V.Narasi Reddy)

Partner General Manager-III Chairman

Membership No.201570

Firm Registration No.000459s

( C. L. Naidu) (V. Hanumantha Reddy) (S.Chellapandi)

Director Director Director

(V.S. Gupta) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director

(Smt. K. Sunitha, IAS) (Smt.V.Karuna, IAS)Director Director

stBalance Sheet As At 31 March 2016

Andhra Pradesh Grameena Vikas BankHead Office: Warangal

Particulars Sch. As at 31.03.2016 As at 31.03.2015

TOTAL 16173,33,88 13598,73,83

CAPITAL AND LIABILITIES

Capital 1-A 94,08,50 5,00,00

Share Capital Deposit 1-B 0 89,08,50

Reserves and Surplus 2 1303,73,25 1080,26,18

Deposits 3 10202,11,53 8280,00,15

Borrowings 4 3733,79,81 3207,99,62

Other Liabilities and Provisions 5 839,60,79 936,39,38

ASSETS

Cash and Balances with RBI 6 514,84,18 430,69,78

Balances with Banks and Money at Call

& Short Notice 7 2850,65,79 2799,66,74

Investments 8 2358,46,79 2071,68,82

Advances 9 9862,43,63 7898,85,05

Fixed Assets 10 55,61,20 50,67,38

Other Assets 11 531,32,29 347,16,06

TOTAL 16173,33,88 13598,73,83

Contingent Liabilities 12 35,99,36 17,25,28

59


st Profit & Loss for the year ended 31 March 2016 (Rs in '000)

Particulars Sch. 2015-16 2014-15

3. TOTAL 1646,16,91 1343,95,52

1. Interest Earned 13 1484,69,50 1243,86,13

a. Interest/Discount on Advances/bills 1104,72,89 993,97,72

b. Interest on Investments 171,42,99 143,68,56

c. Interest on Balances with RBI and Other

Inter Bank Funds NIL NIL

d. Interest on STDRS with Banks 208,53,62 106,19,85

2. Other Income 14 161,47,41 100,09,39

a. Commission, Exchange and Brokerage 125,63,65 90,55,71

b. Miscellaneous Income 35,83,76 9,53,68

4. Interest Expended 15 968,51,82 782,32,62

5. Operating Expenses(a+b) 16 336,76,55 223,31,13

a. Employees Costs 229,17,86 151,44,81

b. Other Operating Expenses 107,58,69 71,86,32

6. Total Expenditure excluding Provisions and

Contingencies (4+5) 1305,28,37 1005,63,75

7. Operating Profit before Provisions and

Contingencies (3-6) 340,88,54 338,31,77

8. Provisions(other than Tax) and Contingencies 34,70 (44,78,38)

9. Exceptional Items NIL NIL

10. Profit/Loss from Ordinary Activities

before Tax (7+8-9) 341,23,24 293,53,39

11. Tax Expense

a. Provision for Taxation (107,61,57) (90,00,00)

b. Deferred Tax (1,32,77) (1,92,67)

c. Earlier Years Adjustments (8,81,83) NIL


60


Particulars Sch. 2015-16 2014-15

(Rs in '000s)








( C. L. Naidu) (V. Hanumantha Reddy) (S.Chellapandi)


(V.S. Gupta) (T. Venkata Reddy) (K.V. Maruthi Rao)Director Director Director

(Smt. K. Sunitha, IAS) (Smt.V.Karuna, IAS)Director Director

2. Net Profit/Loss for the period from Ordinary

Activities after Tax 223,47,07 201,60,72

13. Extraordinary Items (net of tax expenses) NIL NIL

14. Net Profit/Loss for the Period (12-13) 223,47,07 201,60,72

IV. APPROPRIATIONS

Net Profit/Loss for the period 223,47,07 201,60,72

Brought forward Profit 848,54,88 687,26,30

Transfer to the Statutory Reserves 44,69,41 40,32,14

Profit(+)/Loss(-) Carried Over to Balance Sheet 1027,32,54 848,54,88

Summary of Significant Accounting Policies 17

Disclosures and Notes to Accounts 18

61


SCHEDULE – 1 A - CAPITAL

st Schedules forming part of Balance Sheet As At 31 March 2016

SCHEDULE – 1 B - SHARE CAPITAL DEPOSIT

(Rs in '000)

(Rs in '000)

Particulars As at 31.03.2016 As at 31.03.2015

TOTAl 94,08,50 5,00,00

Authorised Capital 2000,00,00 5,00,00

(200,00,00,000 Equity Shares of Rs.10/-each)

Issued Capital 94,08,50 5,00,00


Subscribed Capital 94,08,50 5,00,00


Called up Capital 94,08,50 5,00,00


Less: Calls Un Paid NIL NIL

Add: Forfeited Shares NIL Nil


TOTAL 89,08,50

Share Capital Deposit from

a. Govt. of India 44,54,25

b. State Bank of India 31,17,98

c. Govt. of Andhra Pradesh 13,36,27

NIL

NIL

NIL

NIL


62


SCHEDULE – 2 - RESERVES AND SURPLUS(Rs in '000s)


TOTAL 262,08,02 217,38,61

TOTAL 1,20 1,20

TOTAL NIL NIL

TOTAL 14,31,49 14,31,49

TOTAL 1027,32,54 848,54,88

TOTAL 1303,73,25 1080,26,18

I. Statutory Reserve

i. Opening Balance 217,38,61 177,06,47

ii. Additions / Deletions during the Year 44,69,41 40,32,14

II. Capital Reserve

i. Opening Balance 1,20 1,20

ii. Additions / Deletions during the Year NIL NIL

III. Share Premium

i. Opening Balance NIL NIL


IV. Revenue and Other Reserves



V. Balance In Profit & Loss Account


ii. Additions / Deletions during the Year 178,77,66 161,28,58


63


SCHEDULE – 3 - DEPOSITS

SCHEDULE – 4 - BORROWINGS

(Rs in '000s)

(Rs in '000s)


TOTAL 10202,11,53 8280,00,15

TOTAL 10202,11,53 8280,00,15

A. I. Demand Deposits

i) From Banks NIL NIL

ii) From Others 59,34,38 52,43,61

II. Savings Bank Deposits 3674,42,36 2924,32,58

III. Term Deposits

i) From Banks NIL NIL

ii) From Others 6468,34,79 5303,23,96

B. i) Deposits of Branches In India 10202,11,53 8280,00,15

ii) Deposits of Branches Out Side India NIL NIL


TOTAL 3733,79,81 3207,99,62

I. Borrowings In India

I) Reserve Bank of India NIL NIL

Ii) Other Banks (SBI) 1004,60,92 34,94,64

Iii) Other Institutions and Agencies

a) NABARD 2648,52,93 3051,74,24

b) NHB 80,65,96 121,30,74

II. Borrowings Out Side India NIL NIL


64


SCHEDULE – 6 - CASH AND BALANCE WITH RESERVE BANK OF INDIA (Rs in '000s)

SCHEDULE – 5 - OTHER LIABILITIES AND PROVISIONS

(Rs in '000s)


TOTAL 514,84,18 430,69,78

I. Cash in Hand

(Including Foreign Currency Notes) 84,37,56 75,20,15

II. Balances With Reserve Bank of India

i) In Current Accounts 430,46,62 355,49,63

ii) In Other Accounts NIL NIL


TOTAL 839,60,79 936,39,38

I. Bills Payable/Bankers Cheque 78,47,78 93,31,86

II. Inter Office Adjustments (Net) 7,33,14 31,92,69

III. Interest accrued 522,73,89 444,70,20

IV Provisions

a) Provision on Standard Assets 29,26,11 24,81,55

b) Provision on Rural Advances 10,67,36 45,67,36

c) Provision on Frauds 1,44,52 1,58,28

d) Audit Fee Provision 76,00 70,00

e) Income Tax Provision 107,61,57 90,00,00

f) Wage Revision Arrears NIL 5,39,00

g) Bonus Provision 66,00 NIL

V Interest payable on Borrowings 52,05,10 80,61,10

VI. TDS on Bank Term Deposits 11,24,87 14,75,45

VII. Other Liabilities 17,34,45 102,91,89


65


SCHEDULE – 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE(Rs in '000s)


TOTAL 2850,65,79 2799,66,74

TOTAL NIL NIL

TOTAL 2850,65,79 2799,66,74

I. In India

i. Balances with Banks

a) In Current Accounts 13,04,79 22,99,74

b) In Other Deposit Accounts 2837,61,00 2776,67,00

ii. Money at Call and Short Notice

a) With Banks NIL NIL

b) With Other Institutions NIL NIL

II. Outside India

a) In Current Accounts NIL NIL

b) In Other Deposit Accounts NIL NIL

c) Money at Call and Short Notice NIL NIL


66


SCHEDULE – 8 - INVESTMENTS(Rs in '000s)


TOTAL 2358,46,79 2071,68,82

TOTAL NIL NIL

TOTAL 2358,46,79 2071,68,82

I. Investments in India

i) Government Securities 2288,64,27 1795,61,29

ii) Other Approved Securities NIL NIL

iii) Shares NIL NIL

iv) Debentures and Bonds NIL NIL

v) Subsidiaries and/or Joint Ventures NIL NIL

vi) Investment in Equity shares of National 24,99 NIL

Payment Corporation of India (Long Term)

vii) Others 69,57,53 276,07,53

II. Investments outside India

i) Government Securities

(Including Local Authorities) NIL NIL

ii) Subsidiaries and/or Joint Ventures NIL NIL

iii) Other Investments (to be Specified) NIL NIL


67


SCHEDULE – 9 - ADVANCES (Rs in '000s)


TOTAL (A) 9862,43,63 7898,85,05

TOTAL (B) 9862,43,63 7898,85,05

TOTAL (C.I) 9862,43,63 7898,85,05

TOTAL (C.II) NIL NIL

TOTAL (C.I+C.II) 9862,43,63 7898,85,05

A. 1. Bills Purchased and Discounted NIL NIL

2. Cash Credits, Over Drafts and Loans

Repayable on Demand 7512,98,01 5108,61,39

3. Term Loans 2349,45,62 2790,23,66

B. 1. Secured by Tangible Assets 9830,09,30 7874,01,90

2. Covered by Bank/Govt. Guarantees NIL NIL

3. Unsecured 32,34,33 24,83,15

C.I. Advances in India

1. Priority Sector 8498,44,96 5677,26,67

2. Public Sector NIL NIL

3. Banks NIL NIL

4. Others 1363,98,67 2221,58,38

C.II. Advances outside India

1. Due from Banks NIL NIL

2. Due from Others NIL NIL


68


SCHEDULE – 10 - FIXED ASSETS (Rs in '000)


TOTAL 9,57 9,57

TOTAL 14,00 14,00

TOTAL 51,51,60 48,13,78

TOTAL 3,86,03 2,30,03

TOTAL (I+II+III+IV) 55,61,20 50,67,38

I. Land

At Cost as on 31st March 2015 of the Preceding Year 9,57 9,57

Additions/Deletions during the Year NIL NIL

II. Buildings

stAt cost as on 31 March 2015 of the preceding year 14,00 NIL

Additions/Deletions during the Year NIL 14,00

Deductions during the year NIL NIL

III .Other Fixed Assets

(including Furniture & Fixtures)stAt cost as on 31 March 2015 of the Preceding Year 90,37,32 79,84,04

Additions / Deletions during the Year 12,79,54 10,59,10

Deductions during the Year 16,47 5,82

Depreciation to date 51,48,79 42,23,54

IV. Capital Work in progress

st At Cost as on 31 March 2015 of the Preceding Year 2,30,03 2,15,37

Additions / Deletions during the Year 1,56,00 14,66

Deductions during the Year NIL NIL


69


SCHEDULE – 11 - OTHER ASSETS

(Rs in '000s)


TOTAL 531,32,29 347,16,06

1. Inter Office Adjustments (Net) NIL NIL

2. Interest Accrued 139,86,12 102,17,41

3. Advance Tax paid 89,00,00 77,00,00

4. Tax Deducted at Source during earlier Years 5,36,92 5,23,04

5. Stationery 29,73 42,55

6. Telephone Deposit 3,97 3,97

7. Suspense 0 6,66

8. Subvention receivable from NABARD 262,12,22 106,95,65

9. Interest Incentive receivable from NABARD 0 2,32,49

10. Subvention receivable from GOI (NRLM) 0 3,14,75

11. Prepaid Expenses-Insurance 76,12 85,43

12. Income Tax paid under protest against

disputed demand 23,27,78 23,24,56

13. Others 10,59,43 25,69,55


70


SCHEDULE – 13 - INTEREST EARNED

SCHEDULE – 12 - CONTINGENT LIABILITIES(Rs in '000s)

(Rs in '000s)

Particulars YE 2015-16 YE 2014-15

TOTAL 1484,69,50 1243,86,13

Interest/Discount on Advances/Bills 1104,72,89 993,97,72

Interest on Investments 171,42,99 143,68,56

Interest on Balances with RBI and other Inter Bank funds NIL NIL

Others (Interest on STDRs with Banks) 208,53,62 106,19,85


TOTAL 35,99,36 17,25,28

1. Claims against the Bank not acknowledged as debt 18,14,00 NIL

2. Liability for partly paid investments NIL NIL

3. Liability on account of outstanding forward

exchange contracts NIL NIL

4. Guarantees given on behalf of Constituents

a) In India 10,13,42 6,10,13

b) Outside India NIL NIL

5. Acceptances, Endorsements and Other Obligations NIL NIL

6. Other items for which the Bank is

contingently liable (DEAF Fund) 1,34,75 1,16,00

7. Other items for which Bank is contingently

liable (Unclaimed Bankers Cheques treated

as Income) 6,37,19 9,99,15


71


SCHEDULE – 14 - OTHER INCOME

SCHEDULE – 15 - INTEREST EXPENDED

(Rs in '000s)

(Rs in '000s)

Interest on Deposits 694,60,94 578,77,30

Interest on Reserve Bank of India/ Inter Bank Borrowings 273,90,88 203,55,32

Others NIL NIL


TOTAL 968,51,82 782,32,62

Commission, Exchange and Brokerage 125,63,65 90,55,71

Profit on Sale of Investments 29,16,88 2,89,79

Profit on Revaluation of Investments NIL NIL

Profit on Sale of Lands, Buildings and Other Assets NIL NIL

Profit on Exchange Transactions NIL NIL

Income Earned by way of Dividend Etc., from Subsidiaries

/Companies and/or Joint Ventures in Abroad/in India NIL NIL

Miscellaneous Income 6,66,88 6,63,89


TOTAL 161,47,41 100,09,39


72


SCHEDULE – 16 - OPERATING EXPENSES (Rs in '000s)


TOTAL 336,76,55 223,31,13

Salary Payments and Provisions to Employees 229,17,86 151,42,49

Rent, Taxes, Lighting and Fuel 15,52,81 13,63,36

Printing and Stationery 3,35,21 3,14,31

Advertisement and Publicity 6,30 13,04

Directors Fee, Allowances and Expenses 14 11

Depreciation on Bank's Property 9,25,25 3,80,24

Auditor's Fee and Expenses 70,39 65,44

Legal Charges 15,52 15,18

Telephones Charges 1,23,48 1,13,98

Repairs and Maintenance 23,92 26,28

Insurance 10,14,75 6,89,38

Travelling and Halting Expenses 5,19,38 6,02,95

Leave Fare Concession 18,57 24,41

Leave Encashment Fund 6,54,18 2,32

Medical Expenses 2,11,13 2,64,37

Gratuity Contribution 18,99,31 7,62

AMC for Software and Hardware 12,85,77 11,23,05

Books and Periodicals 83,40 82,72

Computerization 45,14 38,31

Vehicle and Fuel 2,94,16 3,13,30

Entertainment 77,85 82,04

Other Expenses (Sundries) 16,02,03 16,66,23


73


SCHEDULE – 17 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation:

2. Use of estimates:

3. Revenue Recognition:

4. Investments:

The Bank's financial statements are prepared under the historical cost convention, on the accrual basis of

accounting ongoing concern basis, unless otherwise stated and conform in in all material aspects to Generally

Accepted Accounting Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms

/guidelines prescribed by the National Bank for Agriculture and Rural Development (NABARD) / Reserve Bank Of

India (RBI),Banking Regulation Act 1949, Regional Rural Bank Act, 1976 and amendments thereto and Accounting

Standards issued by the Institute of Chartered Accountants of India (ICAI), and practices prevalent in banking

industry in India.

The preparation of financial statements requires the management to make estimates and assumptions considered

in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial

statements and the reported income and expenses during the reporting period. Management believes that the

estimates used in the preparation of the financial statements are prudent and reasonable and are based upon

management's evaluation of the relevant facts and circumstances as of the date of financial statements. Future

results could differ from to these estimates and the differences between the actual results and the estimates are

recognised in the period in which the result are known / materialised.

a) Income and Expenditure are accounted on accrual basis, except otherwise stated.

b) Interest income is recognised in the Profit and Loss Account as it accrues except, income from Non

Performing Assets (NPAs), comprising of advances, and investments which is recognised upon realisation,

as per the prudential norms prescribed by the RBI or other regulatory authorities.

c) Profit / loss on sale of investments is recognised in the Profit and Loss Account.

d) Interest on Investments has been recognized on accrual basis.

e) Commission & Exchange and Locker rent have been recognized on realization basis.

f) Interest on overdue term deposits is accounted for on renewal.

g) In case of suit filed accounts, legal and other expenses incurred are charged to Profit and Loss Account and

at the time of recovery of such expenses is accounted as income.

The transactions in Government Securities are recorded on “Settlement Date”. Investments other than Government

Securities are recorded on “Trade Date”.

a) Investments are classified into three categories viz., Held to Maturity (HTM), Available for Sale (AFS) and

Held for Trading (HFT) as per RBI guidelines.


74


l Investments that the Bank intends to hold till maturity are classified as Held to Maturity (HTM).

l Investments that are held principally for resale within 90days from the date of purchase are classified as

Held for Trading (HFT)

l Investments, which are not classified in the above two categories, are classified as Available for Sale (AFS).

An investment is classified as HTM / HFT / AFS at the time of its purchase and subsequent shifting

amongst categories is done in conformity with regulatory guidelines.

However, for disclosure in Balance Sheet these are classified as under - Government Securities, Other

Approved Securities and Others.

b) The Securities in each classification are valued in accordance with RBI guidelines as detailed hereunder:

l In determining the acquisition cost of an investment:

l Brokerage or Commission received on subscriptions is reduced from the cost.

l Broking period interest paid / received on debt instruments is treated as interest expense / income and is

excluded from cost or sale consideration.

l Cost is determined on the weighted average cost method for investments under AFS and HFT category and

FIFO basis (First in First out) for investments under HTM category

l Transfer of securities from HFT / AFS category to HTM category is carried out at the lower of acquisition

cost / book value / market value on the date of transfer. The depreciation, if any, on such transfer is fully

provided for. However, transfer of securities from HTM category to AFS category is carried out on at

acquisition price / book value. After transfer, these securities are immediately re-valued and resultant

depreciation, if any, is provided

l Investments under Held to Maturity category are carried at acquisition cost unless it is more than the face

value, in which case the premium is amortised over the period of remaining maturity on constant yield

basis. Such amortisation of premium is adjusted against income under the head “Interest on Investments”.

l Investments in equity shares of other companies are valued at historical cost. A provision is made for

diminution, other than temporary, for each investment individually.

l Investments under AFS and HFT category are individually re-valued at market price or fair value

determined as per regulatory guidelines. A Provision is made for diminution, other than temporary, for

each investment individually.

l Investments are classified as Performing and Non Peforming, based on the guidelines issued by the RBI.

Investments of domestic offices become non performing where:

l Interest or instalment (including maturity proceeds) is due and remains unpaid for more than 90 days.

l In the case of equity shares, in the event the investment in the shares of any company is valued at Rs. 1/- per

company on account of the non availability of the latest balance sheet, those equity shares will be

reckoned as NPI.

Loans and advances are classified as performing and non-performing, based on the guidelines issued by the

RBI. Loan assets become Non Performing Asset (NPA) where:

5. Loans or Advances and Provisions thereon:

75


l In respect of agriculture advances:

i. For short duration crops, where the instalment of principal or interest remains overdue for two crop

seasons and

ii. For long duration crops, where the principal or interest remains overdue for one crop season.

l In respect of Non Agriculture advances:

i. In respect of term loans, interest and / or instalment of principal remains overdue for a period of more than

90 days.

ii. In respect of Overdraft or Cash Credit Advances, the account remains “out of order”, i.e. if the outstanding

balance exceeds the sanctioned limit or drawing power continuously for a period 90 days, or if there are no

credits continuously for 90 days as on the date of balance sheet, or if the credits are not adequate to cover

the interest due during the same period.

Provisions are made for NPAs as per the extant guidelines/directives prescribed by the RBI:

a) All advances have been classified under four categories i.e., Standard Assets, Sub-standard Assets,

Doubtful Assets and Loss Assets.

b) Provisions on Advances are made as under:

General Provision for Standard Assets at the following rates:Direct Advances to

Agriculture and SME sectors at 0.25%

Commercial Real Estate sector at 1%

All other advances not included in (1) & (2) above at 0.40%

A loan asset that has remained non performing for a period less than or equal to 12 months is a Sub

Standard Asset

General Provision of 15% on the total outstanding

Additional Provision of 10% for exposures which are unsecured ab-intio (i.e. where realisable value of

security is not more than 10% ab-initio).

I Standard Assets:

II Sub-Standard Assets:

III Doubtful Assets:

A loan asset that has remained in the substandard category for of 12 months is Doubtful Asset

IV Loss Assets:

A loan asset where Loss has been identified but the amount has not been fully written of is a Loss Asset.

100% Provision on outstanding Advances.

l Advances are net of specific loan loss provisions, unrealised interest, ECGC claims received

l For Restructured / Rescheduled assets, provisions are made in accordance with the extant guidelines

Secured Portion Up to One year 25%

One to three years 40%

More than three years 100%

Unsecured Portion 100%

76


issued by the RBI.

l In the case of loan accounts classified as NPAs, an account may be reclassified as a performing asset if it

confirms to the guidelines prescribed by the regulators.

l Amounts recovered against debts written off in earlier years are recognised as revenue in the year of

recovery.

l In addition to the specific provision on NPAs, general provisions are also made for Standard Assets as per

extant RBI guidelines. This general provision is reflected in Schedule 5 of the Balance Sheet under the

head “Other Liabilities and Provisions – Other Provisions” and is not considered for arriving at the net

NPAs.

The bank has a policy for creation and utilisation of floating provisions for advances, investments and general

purpose. The quantum of floating provisions to be created is assessed at the end of each financial year.

l Fixed Assets are carried at historical cost less accumulated depreciation/amortisation.

l Cost includes cost of purchase and all expenditure directly attributable to or incur in connection with

acquiring the said asset before it is put to use. Subsequent expenditure incurred on the assets put to use

are capitalised only when it increases the future benefits from such assets or their functioning capability.

l Depreciation / amortisation is provided on straight line method as per the rates stated below.

6. Floating Provisions:

7. Fixed Assets, Depreciation and Amortisation:

8. Impairment of Assets:

9. Employee Benefits:

Fixed assets are reviewed for impairment whenever events or changes in circumstances warrant that the

carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured

by a comparison of the carrying amount of an asset to future Net Discounted Cash Flows expected to be

generated the asset. If such assets are considered to be impaired, the impairment to be recognised is

measured by the amount which the carrying amount of the asset exceeds the fair value of the asset.

a. Short Term Employee Benefits:

The undiscounted amount of short –term employee benefits, such as medical benefits etc., which are

expected to be paid for the services rendered by employees, are recognized during the period when the

employee renders the service.

Description of Fixed Asset Depreciation / amortization rates

Furniture & Fixtures other than Electrical Fittings and Fixtures 10%

Electrical Fittings with 3 years life 33.33%

Electrical Fittings with 5 years life 20%

Safe Deposit Lockers, Fire proof data safe 5%

Computer systems & ATMs 33.33%

Computer software which does not form an integral

part of computer hard ware and cost of software development 100%

Motor vehicles 10%

77


b. Long Term Employee Benefits

i. Defined Benefit Plans:

For all the eligible employees, the Bank provides for Gratuity liability based on actuarial valuation

and contribution to SBI Life Insurance Company Limited on annual basis.

For all the employees who have completed five years of service, the Bank provides for

Leave Encashment liability based on actuarial valuation and contributes to SBI Life Insurance Company

Limited on annual basis.

ii. Defined Contribution Plans such as Provident Fund are recognized as an Expense and charged to the Profit

& Loss Account on accrual basis.

Income Tax expense is the aggregate amount of current tax and deferred tax. Current taxes expense and

deferred tax expense are determined in accordance with the provisions of the Income Tax Act, 1961 and as per

the Accounting standard 22 – Accounting for Taxes on Income respectively and tax laws prevailing in India.

Deferred tax adjustments comprise of changes in the deferred tax assets or liabilities during the period.

Deferred tax assets and liabilities are recognised by considering the impact of the timing differences between

taxable income and accounting income for the current year, and carry forward losses. Deferred tax assets and

liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the

Balance Sheet date. The impact of changes in Deferred Tax assets and liabilities is recognised in the Profit and

Loss Account. Deferred tax assets are recognised and reassessed at each reporting date, based upon

management's judgement as to whether their realisation is considered as reasonably / virtually certain.

In conformity with AS – 29 “Provisions, Contingent Liabilities and Contingent Assets”, issued by ICAI, the bank

recognises the provisions only when it has a present obligation as a result of a past event and would result in

probable outflow of resources embodying economic benefits will be required to settle the obligation, and

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

No provision is recognised for :

I. Any possible obligation that arises from past events and existence of which will be confirmed only by the

occurrence or non occurrence of one or more uncertain future events not wholly within the control of the

bank.

II. Any present obligation that arises from past events but is not recognised because

a. It is not probable that an outflow of resources embodying economic benefits will be required to settle the

obligation or

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

Such obligation is recorded as Contingent Liabilities. These are assessed at regular intervals and only that

part of the obligation for which an outflow of resources embodying economic benefits is probable, is

provided for, except in the extremely rare circumstances where no reliable estimate can be made.

III. Provision for reward points in relation to the debit card holders of the Bank is being provided for on

actuarial estimates.

IV. Contingent Assets are not recognised in the financial statements.

a. Gratuity:

b. Leave Encashment:

10. Income Tax Expense:

11. Contingent Liabilities & provisions:

78


SCHEDULE – 18

DISCLOSURES & NOTES TO ACCOUNTS

I.Disclosures as per norms for RRBs

1. CAPITAL

2. INVESTMENTS

S.No Particulars Current year Previous year

1 Value of Investments

i) Gross value of Investments 23584679 20716882

ii) Provisions for Diminution 0 0

iii) Net value of Investments 23584679 20716882

2 Movement of provisions held towards

depreciation on investments

i) Opening Balance Nil Nil

ii) Add: Provisions made during the year Nil Nil

iii) Less: Write off / Write back of excess provisions

during the year Nil Nil

iv) Closing Balance Nil NIL

3. REPO TRANSACTIONS

Securities Sold under Repos Nil Nil Nil Nil

Securities purchased under Nil Nil Nil Nil

Reverse Repos

Minimum stoutstanding outstanding outstanding 31

during the during the during the March,

year year year 2016

Maximum Daily Average As on

Item

(Rs in '000s)

(Rs in '000s)

The Bank has invested a sum of Rs.24,99,200/- in National Payments Corporation of India (NPCI), a company

promoted by ten banks under the guidance of Indian Bank's Association.

Sl.No Particulars Current year (%) Previous year (%)

I) CRAR(%) 13.48 13.45

ii) CRAR – Tier I Capital (%) 13.11 12.69

iii) CRAR – Tier II Capital (%) 0.37 0.76

iv) Percentage of Shareholding of the :

A Government of India 50.00 50.00

B Government of Andhra Pradesh 15.00 15.00

C State Bank of India (Sponsor Bank) 35.00 35.00


79


4. Non-SLR Investment Portfolio

i) Issuer composition of Non SLR Investments

(ii) Non-Performing Non-SLR Investments

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

(Rs in '000s)

(Rs in '000s)

5.Asset Quality

No. Particulars Current year (2015-16) Previous year (2014-15)

I Net NPAs to Net Advances (%)

ii Movement of NPAs (Gross)

(a) Opening balance

(b) Additions during the year

© Reductions during the year

(d) Closing balance

iii Movement of Net NPAs

(a) Opening balance

(b) Additons during the year

© Reductions during the year

(d) Closing balance

iv Movement of provisions for NPAs (Excluding

provisions on standard assets)

(a) Opening balance

(b) Provisions made during the year

© Write-off / Write-back of excess provisions

(d) Closing balance

1.40 2.47

2990302 3498163

794833 1430707

1265152 1938568

2519983 2990302

2224258 2550101

58053 499298

805640 825141

1476671 2224258

766044 713542

303445 78638

26177 26136

1043312 766044

I. Non-Performing Assets (Rs in '000s)

S. No Issuer Amount Extent of

Private below investment unrated unlisted

placement grade securities securities securities

Extent of Extent of Extent of

1 2 3 4 5 6 7

i) PSUs NIL NIL NIL NIL NIL

ii) FIs NIL NIL NIL NIL NIL

iii) Banks NIL NIL NIL NIL NIL

iv) Private NIL NIL NIL NIL NIL

Corporates

v) Others (MF-SBIMF)

&Equity shares of

NPCI 698252 NIL NIL NIL NIL

vi) Provisions

held towards NIL NIL NIL NIL NIL

depreciation

Total 698252 NIL NIL NIL NIL

80


ii. Details of Loan Assets subject to Restructuring

II. Details of financial assets sold to Securitization (SC) / Reconstruction Company (RC) for Assets Reconstruction


i No. of accounts NIL NIL

NIL NIL

NIL NIL

NIL NIL

NIL NIL

ii Aggregate value (net of provisions) of accounts sold to SC/RC

iii Aggregate consideration

iv Additional consideration realized in respect of accounts

transferred in earlier years

v Aggregate gain / loss over net book value

III. Details on non-performing financial assets purchased / sold

A. Details of non-performing financial assets purchased:

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

(b) Aggregate outstanding NIL NIL

2 (a) Of these, number of account restructured during the year NIL NIL

(b) Aggregate outstanding NIL NIL

S.No Particulars Current year Previous Year

NIL NIL

B. Details of non-performing financial assets sold :

S.No.Particulars Current year Previous year

1 No. of accounts sold

2 Aggregate outstanding NIL NIL

3 Aggregate consideration received NIL NIL

NIL NIL

(Rs in '000s)

(Rs in '000s)

(Rs in '000s)

(Rs in '000s)


i Total amount of loan assets subject to restructuring,

rescheduling, renegotiation NIL NIL

ii The amount of Standard assets subjected to restructuring,


iii The amount of Sub-Standard assets subjected to restructuring,


iv The amount of Doubtful assets subjected to restructuring,


(i) = (ii) + (iii) + (iv) NIL NIL

81


IV. Provisions on Standard Assets

S.No. Particulars Current year Previous year

1 Provisions towards Standard Assets 292610 248155

6. Business Ratios


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 (Before Provisions)

iv Returns on Assets (%)

v Business per Employee

vi Net Profit per Employee (Rs in '000)

9.35 10.10

1.02 0.81

2.15 2.75

1.41 1.63

Dep+Adv) (Rs’000) 70498 61012

757 709

7. Asset Liability Management – Maturity pattern of certain terms of Assets and Liabilities

Particulars1 to 14

days15 to 28

days

29 days to 3

months

Over 3 months

and upto 6

months

Over 6 months

and upto 1 year

Over 1 year and

upto 3 years

Over 3 year and

upto 5 years

Over 5 years

Total

Deposits 6269117 2848231 9366304 10480420 17870327 17426705 2367495 35392554 102021153

Advances 6558305 10235789 3938968 17698730 14765310 26007449 4236119 15183693 98624363

Investments &

STDRs 697900 0 6650000 500000 15382540 10415182 3360418 14954739 51960779

Borrowings 0 5723095 0 6174397 6614140 14611153 4215196 0 37337981

Foreign

Currency AssetsNIL NIL NIL NIL NIL NIL NIL NIL NIL

Foreign

Currency

Liabilities

NIL NIL NIL NIL NIL NIL NIL NIL NIL

(Rs in '000s)

(Rs in '000s)

82


8. Exposures – Exposure to Real Estate Sector


A Direct exposure

I Residential Mortgages above Rs. 20.00 lakhs lending fully secured

by mortgages on residential property that is or will be occupied by the

borrower or that is rented (individual housing loan upto Rs. 20 lakh

may be shown separately)

Up to Rs. 20.00 lakhs

ii Commercial Real Estate

Lending secured by mortgages on commercial real estates

(office buildings, retail space, multi-purpose commercial premises,

multi-family residential buildings, multi-tenanted commercial premise,

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

securitized exposures

a. Residential

b. Commercial Real Estate

B Indirect Exposure

Fund-based and non-fund based exposures on National Housing

Bank (NHB) and Housing Finance Companies (HFCs)

1271188

4238282 3484952

NIL NIL

NIL NIL

NIL NIL

NIL NIL

NIL NIL

NIL NIL

627595

9. Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the bank:

The bank had not exceeded the single borrower limit, group borrower limit fixed by the Board

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

Particulars Current Year Previous year

Provision for Income Tax 1076157 9,00,000

11. Disclosure of Penalties imposed by RBI

12. Additional Disclosures as per Accounting Standards applicable to the Bank

The Bank has maintained CRR and SLR as per RBI Act 1934 and Banking Regulation Act 1949 and not defaulted during the

financial year under report.

a) Related parties where control / significant influence exists or with whom transaction have taken place during the year.

Sponsor Bank, their Subsidiaries and Associates:· State Bank of India

(i) Related party disclosure

(Rs in '000s)

(Rs in '000s)

83


Refinance received from State Bank of India

Interest paid to SBI

Investments made with:

SBI - in the form of STD Rs

SBI Fund Management Private Limited

Interest received from SBI

Profit on sale of investments on SBI

Contributions to Gratuity Fund with SBI Life Insurance Company Limited

Contributions to Group Leave Encashment Policy with SBI Life

Insurance Company Limited NIL

Current Account balance with SBI

For the yearstended 31 ended 31

March 2016 March 2015

For the year st

Nil Nil

43,43,63 12,27,35

21,88,95,00 22,24,27,00

69,57,53 2,76,07,53

2,08,53,62 1,06,19,85

19,03,09 2,89,79

18,99,31 762

6,54,18

65,43 10,93,19

(iii) Particulars of Managerial Remuneration:

Key Management Personnel

Shri. V. Narasi Reddy, Chairman

Shri. Y.N. Sukumar, General Manager -I

Shri. B. Narayana Sresty, General Manager -II upto 07.11.2015

Shri. S. Prakash Kumar, General Manager –III

Shri. T.V. Krishna Reddy, General Manager -II from 07.10.2015

(ii) Particulars of related party accounts transactions:

The following is the summary of significant related party transactions:

Shri.V.Narasi Reddy Chairman 1836505/- 1526299/-

Shri.Y.N.Sukumar General Manager - I 1347516/- 563603/-

Shri.B.NarayanaSrestyGeneral Manager - II 997864/- 1104524/-

Shri.T.V.Krishna Reddy General Manager - II 342758/- -

Shri.S. Prakash Kumar General Manager - III 1344034/- 1129380/-

For the year stended 31

March 2016 March 2015

For the year stended 31

(Rs in '000s)

(Rs)

84


13. Provisions on Rural Advances

S.No. Particulars Current Year Previous Year

a Opening balance in the Rural Advances Provision Account 456736 103086

b The quantum of Rural Advances Provision made in the accounting year Nil 353650

c i. Amount of Draw down made during the accounting year Nil Nil

ii. Provision written back to profit and Loss account 350000 Nil

Total of Draw down 350000 Nil

d Closing balance in the Rural Advances Provision Account 106736 456736

14. Disposal of Complaints:

A) Customer Complaints:

S.No Particulars Nos

a No. of complaints pending at the beginning of the year 03

b No. of complaints received during the year 2015-16 49

c Total Complaints 52

d No. of complaints redressed during the year 52

e No. of complaints pending at the end of the year Nil

B) Award passed by the Banking Ombudsman:

S.No Particulars Nos

a No. of complaints pending at the beginning of the year 02

b No. of complaints received during the year 2015-16 39

c Total Complaints 41

c No. of complaints redressed during the year 40

d No. of complaints pending at the end of the year 01*(since Closed)

e No. of awards passed by Banking Ombudsman 0

f No. of awards implemented Not applicable

g No. of awards pending implementation Not applicable

15. Concentration of Deposits, Advances, Exposures and NPAs

(Rs in '000s)

*Banking Ombudsman Compliant No 4086 received on 21.03.2016. Reply was sent to Banking Ombudsman RBI on

31.03.2016 and was closed on 04.04.2016 by BO RBI.

1. Concentration of Deposits

Total Deposits of Twenty largest depositors 212.84

Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 2.09%

(Rs in Cr)

85


Sub-Total (B)

Total (A+B)

1410.56 9.64 0.68 1327.07 15.78 1.18

10601.76 251.99

2.38 9065.61

299.03 3.30

16. Sector Wise NPAs (Rs. in Cr)

Sl. No Sector*

Current Year Previous Year

Outstanding

Total

Advances

Gross NPAsPercentage of

Gross NPAs to

Total Advances

in that Sector

Percentage of

Gross NPAs to

Total Advances

in that Sector

A Priority Sector

1 Agriculture and

allied activities7068.06 119.14 1.69 7040.60 164.53 2.33

2. Advances to

industries sector

eligible as

priority sector

lending

204.24 49.54 24.26 137.10 49.05 35.77

3 Services 48.09 10.40 21.63 32.28 12.05 37.32

4 Personal Loans 1870.81 63.27 3.38 528.56 57.62 10.90

Sub-Total (A) 9191.20 242.35 2.63 7738.54 283.25 3.66

B Non-Priority

Sector

1 Agriculture and

allied activities -

-

-2 Industry

3 Services

4 Personal loans 1410.56 9.64 0.68 1327.07 15.78 1.18

Outstanding

Total

Advances

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Gross NPAs

2. Concentration of Advances

Total Advances of Twenty largest Borrowers 14.46

Percentage of Advances of twenty largest borrowers to Total Advances of the Bank 0.14%

(Rs in Cr)

3. Concentration of Exposures

Total Exposure of Twenty largest Borrowers/Customers 212.84

Percentage of Exposures to twenty largest Borrowers/Customers to Total Exposure of the

Bank on borrowers/customers. 1.02%

(Rs in Cr)

4.Concentration of NPAs

Total Exposure to top four NPA accounts 2.02

(Rs in Cr)

86


17. Movement of NPAs

II. NOTES TO ACCOUNTS

1. Reorganization of Area of Operations of the Bank:

2. Share Capital and Share Capital Deposit:

stThe Bank has been formed vide Notification dated 31 March 2006 issued by Department of Economic Affairs (Banking

Division), Ministry of Finance, Government of India. As per the said notification, the area of the operation of the Bank is in

eight districts of erstwhile State of Andhra Pradesh (Warangal, Medak, Khammam, Nalgonda, Mahabubnagar, Srikakulam,

Vizianagaram and Visakhapatnam districts).

thVide notification dated 20 October 2014 issued by the Department of Financial Services, Ministry of Finance,

Government of India the districts of Warangal, Medak, Khammam, Nalgonda, Mahabubnagar are omitted. Pending

finalization of the modalities for this notification and approvals from the competent authority, the operations of the bank

are being carried out in all the five districts. Financial statements as at the end of the reporting date include assets and

liabilities, income and expenses relating to the Bank in all the eight districts.

In the earlier years, The Government of India, State Government of Andhra Pradesh and State Bank of India (Sponsor Bank)

have contributed Rs.8,90,850.49 (thousands) in the Ratio of 50:15:35 by way of Share Capital Deposit at the time of stRestructuring of RRBs and the same was classified under Share Capital Deposit, up to 31 March 2016.

Pursuant to the Regional Rural Banks (Amendment) Act, 2015 (passed by the Parliament and notified in the Gazette of th thIndia on 12 May 2015) and letter from NABARD (NB.IDD.RRCBD/1637/316 (Gen) 2015-16 dated 30 March 2016, Board

of the Directors of the Bank have approved for:

a) Increasing the Authorized Capital of the Bank from the existing 5,00,000 Equity Shares of Rs. 100/- each aggregating to

Rs. 50,000 (thousands) to 200,00,00,000 Equity Shares of Rs. 10/- each aggregating to Rs.2000,00,00 (thousands) and

b) Conversion of Share Capital Deposit of Rs. 8,90,850.49 (thousands) into 8,90,85,049 Equity Shares of Rs. 10/-

aggregating to Rs. Rs. 8,90,850.49 (thousands).

The said Share Capital Deposit has been converted and shares have been issued in the same ratio of the Share Capital

Contribution ratio. This fresh issue of share capital has not altered the share holding percentages amongst the existing

shareholders of the bank prior to the date of conversion and fresh issue.

Particulars Rs. in CrstGross NPAs as on 1 April 2015 (Opening Balance)

Additions (Fresh NPAs) during the year

Sub-Total (A)

Less:

(I) Upgradations

(ii) Recoveries (excluding recoveries made from upgraded accounts)

(iii) Write-Offs

Sub-Total (B)stGross NPAs as on 31 March 2016 (Closing Balance) (A-B)

299.03

79.48

378.51

60.92

65.40

0.20

126.52

251.99

87


Classification Gross Advances Net Advances

Total 106017675 104974363

Standard Assets

Sub Standard Assets

Bad & Doubtful Assets

Add: Provision on Sub-Standard And Doubtful Assets etc

Total Gross Advances

103497691 103497691

776023 655982

1743961 820690

1043312

106017675

st3. Classification of Assets (Advances) as on 31 March, 2016:

4. Inter Bank Participation Certificate (IBPC):

5. Bankers' Cheques:

6. Depositor Education and Awareness Fund (DEAF) Scheme:

During the year the bank has entered into Risk sharing participation Contract with State Bank of India (Sponsor Bank)

under Inter Bank Participation Certificate (IBPC) to the extent of Rs.1283,00,00 (thousands) of which the Bank has issued

Priority sector Advances to SBI and taken Non-Priority Sector Advances from them to the extent of Rs.648,00,00

(thousands) and the balance Rs.635,00,00 (thousands) in cash pay-out. The said cash pay out is grouped in Balances with

Banks – in Other Deposit Accounts (Sch-7)

The Unpaid Banker Cheques which were credited earlier years to P&L account aggregating to Rs.6,37,19 (in thousands)

furnished as contingent liability in Schedule 12.

Disclosure as required under Depositor Education and Awareness Fund Scheme – 2014 notified by the Reserve Bank of

India under DBOD No. DEAF Cell.BC.114/30.01.002/2013-14 dated 27th May 2014:

Sl No Particulars Current Year Previous Year

1 Opening Balance of Amount transferred to DEAF 1,16,00 NIL

2 Add: Amount transferred to DEAF during the Year 2015-16 18,75 1,16,00

3 Less: Amounts reimbursed by DEAF towards Claim NIL NIL

4 Closing balance of amounts transferred to DEAF 1,34,75 1,16,00

(Rs in 000s)

7. Fixed Assets:

8. Accounting for X Bipartite Agreement:

The Bank is in possession of Land at various places to the extent of 11,284.86 square yards, which was gifted by certain

donors / assigned by Government of Andhra Pradesh for construction of Office Buildings. The Bank had incurred site

development expenditure and the said costs were capitalized under Land. During the earlier year the Bank has given

Contract to Bharat Sanchar Nigam Limited (BSNL) for construction of Office Buildings at various locations and amounts

paid to BSNL against the bills submitted for construction / initial advance aggregating to Rs.3,84,17 (thousands) which

was disclosed under Capital Work in progress in Fixed Assets Schedule.

Department of Financial Services, Ministry of Finance, Government of India, vide its Order No. F. No.8/ 1 / 2015 / RRB dated st31 July 2015 notified the revised pay scales to RRB staff in line with X bipartite wage revision. Accordingly, the Board of

thDirectors of the Bank in their meeting held on 08 August 2015 resolved to implement the same to the Bank. In pursuance stof the said Order, the bank has revised the pay and allowances of the employees for the period commencing from 01

November 2012 onwards. This agreement resulted in additional employee costs of Rs.47,11,33 Thousands (net of Rs.

53900 Thousands provided in earlier years) for the current financial year. This agreement is effective for the period upto st31 October 2017.

(Rs in 000s)

88


9. Income Tax Demands:

10. Data Purification and Asset Classification

11. Insurance Claims

12. Crop Loan Waiver Scheme

Income tax Department has raised certain demands on the Bank, with regard to assessment of income of the bank and the

tax payable thereon by the Bank. The Bank is contesting demand raised by the Income Tax Department and pursuing the

same. Against the said tax demands, based on its estimate, the Bank recognized an amount aggregate to Rs.18,14,00

(Thousands) as Contingent liabilities and are shown in Schedule 12 – “Contingent Liabilities - Claims against the Banks

not acknowledged as debts”. Against the disputed claims, the Bank paid an amount of Rs. 23,27,78 (Thousands) and the

same is being shown in Schedule 11 – “Other Assets - Income Tax paid against Disputed Demand”. The Bank is confident of

resolving the dispute in it'sfavour. Liability, if any, will be charged to Profit and Loss account in the year of settlement of

these demands/disputes.

The Bank is having a seamless system in its Core Banking Solution (CBS) for recognizing and identifying the non

performing assets in accordance with the extant guidelines. Further, during the year, the management has instructed all

the branches to review, manually, the classification of advances in accordance with the extant guidelines. As per the

confirmations received from branches and the regional offices, the divergence noticed during such manual verification

has resulted insignificant divergences. These insignificant divergences arose due to data input errors into CBS. To

mitigate these insignificant divergences, the management has initiated steps for complete verification of its loan

accounts and data purification on CBS. In the opinion of the Management such deficiencies will not have significant

effect on the financial results of the Bank.

The Bank, subsequent to the balance sheet date has received Rs.2,00,00 (in thousands) from Insurance Company against

claim of 4,09,26 (in thousands) towards the burglary and theft occurred in the financial year 2014-15. Management is

confident of recovery of remaining amount claimed and are of the view that no provision is required in this regard.

s

The State Governments of Telangana and Andhra Pradesh had announced the Crop Loan Waiver Schemes and the details

are as under:

Amount Received 1195,82,00 260,02,00

Amount Utilized. 1179,76,00 259,74,00

Amount Refunded 16,06,00 28,00

Govt of Telangana Govt of Andhra Pradesh

(Rs in 000s)

The Bank has complied with the IRAC norms of the RBI after considering these amounts and subsequently these loans were

renewed.

13. Fraud Cases:

Details of Fraud cases are as under: (Rs in 000s)

Particulars 31.03.2016 31.03.2015

Provision at the beginning of the year 1,58,27

Less: Written off during the year Nil Nil

Add: Additional provision created during the year Nil Nill

Less : Provision reversed during the year 13,74 Nil

Provision as at the year end 1,44,53 1,58,27

Number of fraud cases at the year end 8 9

1,58,27

89


14. The figures mentioned in Balance Sheet, Profit & Loss Account and Schedules 1 to 16 have been rounded off to the

nearest thousand rupees.

15. Previous Year's figures have been regrouped /reclassified/recast wherever necessary to confirm the current year

classification.








( C. L. Naidu) (V. Hanumantha Reddy) (S. Chellapandi)


(T. Venkata Reddy) (K.V. Maruthi RaoDirector Director Director

(Smt.V.Karuna, IAS) (Smt. K. Sunitha, IAS)Director Director

(V.S. Gupta)

90


stCASH FLOW STATEMENT (AUDITED) FOR THE YEAR ENDED 31 March, 2016

Particulars 2015-16 2014-15

Cash Flows from Operating Activities:

Net Profit after Tax 2234707 2016072

Add:

Depreciation debited to P&L 92525 38024

Provision for Income Tax 1076157 900000

Provision for IT Earlier year's Adjustment 88183 0

Deferred Tax Asset Adjustment 13277 19267

Provision for Rural Advances (350000) 353650

Interest Paid on Amounts received from

RBI, SBI, NABARD 2739088 2035532

Less:

Income on Investments (1714299) (1465834)

Operating profit before working capital changes 4179638 3896711

Working Capital Changes:

Increase / (Decrease) in Deposits 19221138 14888209

Increase / (Decrease) in Liabilities and Provisions (1795476) 3082295

(Increase) / Decrease in Advances (19635858) (5462349)

(Increase) / Decrease in Other Assets (951623) (1575801)

Cash generated from Operations (3161819) 10932354

Less: Income Tax Paid (890000) (770000)

Net cash from Operating Activities A 127819 14059065

Cash Flows from Investing Activites:

Purchase of fixed assets (141906) (108194)

Purchase of Investments (2867797) (3135395)

Income from Investments 1714299 1465834

Net cash from Investing Activities B (1295404) (1777755)

Cash Flows from Financing Activites:

Funds from SBI, NABARD, NHB 5258019 9276122

Interest paid to SBI, NABARD, NHB (2739088) (2035532)

Net cash from Financing Activities C 2518931 7240590

Effect of Foreign Exchange Rate Changes

Net Increase/(Decrease) In Cash And Cash Equivalents

(A+B+C) 1351346 19521900

(Rs in '000)


91


Particulars 2015-16 2014-15

Place: Ramachandrapuram, Medak Dist.

Date : 20th May 2016

For M.Bhaskara Rao & Co.

Chartered Accountants

Firm Registration No. 000459s


(CA V.K.Muralidhar)

Partner

Membership No. 201570

(V. Narasi Reddy)

Chairman

(S. Prakash Kumar)

General Manager-III

(Rs in '000)

Add: Opening cash and cash equivalents

I) Cash on hand 752015 728000

ii) Balances with Reserve Bank of India & Other banks 3784936 3053123

iii) Deposit Accounts 27766700 9000628

33654997 32303651

Note:

Closing Cash and Cash Equivalents

I) Cash on hand 843756 752015

ii) Balances with Reserve Bank of India & other banks 4435141 3784936

iii) Deposit Accounts 28376100 27766700

Total 33654997 32303651

92


Head office : 2-5-8/1 Near Ambedkar Statue, Ramanagar,

Hanamkonda - 506 001 warangal

Ph: 0870-2577256 Tollfree: 18004257900

e-mail: [email protected] www.apgvbank.in

I I

I

Honourable Chief Minister of Telangana Shri K. Chandra Sekhar Rao inaugurated our Yerravalli Branch and addressed the customers.

Mobile ATM: Launched on 31.03.2016 by Shri Hardayal Prasad, Chief General Manager, SBI, LHO, Hyderabad, is going round our service area villages and extending ATM facilities, apart from spreading financial literacy, This has attracted huge media attention both print and electronic, highlighting the Bank's proactive

Documents

Growth in Deposits Report 2015-16.pdf · V. Narasi Reddy Andhra Pradesh Grameena Vikas Bank Head Office, Warangal - 506 001 we are with you! Annual Report 2015-16 01. Vision Mission