DIRECTORS’ REPORT Your Directors have pleasure in presenting the Annual Report of the Bank with the audited Balance Sheet, Profit & Loss Account and the Report on Business and Operations for the year ended March 31, 2016. 1. MANAGEMENT DISCUSSION AND ANALYSIS 1.1 Economic and Banking Scenario 2015-16: Global output is estimated to have grown by 3.1 percent in 2015, with 1.9 percent growth for advanced economies and 4.0 percent growth for emerging market and developing economies. Global growth is also projected to remain modest in 2016, at 3.2 percent as per World Economic Outlook (WEO) April 2016. In the Advance Estimates of GDP released by Central Statistics Office (CSO), the growth rate of GDP at constant market prices is projected to increase to 7.6 per cent in 2015-16 from 7.2 per cent in 2014-15. Domestic economic activity lost pace in the second half of 2015-16, slowed down by muted investment and a prolonged contraction in exports. While private final consumption expenditure has been the mainstay in holding up aggregate demand, it has largely been an urban phenomenon; coincident indicators of rural consumption generally remained weak or in negative territory. Agriculture is likely to register low growth for the second year in a row on account of weak monsoons; it has performed better than last year. Industry has shown significant improvement primarily on account of the better manufacturing and service growth. Consumer price inflation rose in the second half of 2015-16 before dropping in February with a sharp decline in food prices. Farm and non-farm cost pressures abated and wage growth in rural areas as well as in the organised sector remained weak. Inflation however remained contained on account of (i) cereal inflation remaining contained by astute supply management; (ii) softening of crude oil prices from December onwards and (iii) sharp fall in vegetable prices since December 2015. 1.2 Outlook for 2016-17 Global growth is expected to pick upto 3.5 percent in 2017. (WEO, April 2016) On the domestic front, Real GDP growth is projected to improve gradually to 7.6 per cent in 2016-17 with inflation expected to moderate to 5 per cent. However slow pick up of investment demand, private investment and significant risks of weaker global activity; could be the deterrents to the projected growth prospects. Positive sentiments however emerge from the government’s “start-up” initiative, strong commitment to fiscal targets, and the thrust on boosting infrastructure that could brighten the investment climate; while household consumption demand could be spurred by the Pay Commission award, continued low commodity prices and measures to announced for rural sector in the Union Budget 2016-17. 2. Performance of Business & Deposits 2015-16 2.1 Business Total Business of your Bank stood at Rs. 250103 crore as on 31.03.2016 as compared to Rs. 223329 crore last year (growth of 11.99%). 2.2 Deposits Total deposit stood at Rs. 138990 crore as compared to Rs.122119 last year (growth of 13.81%). CASA deposit stood at Rs. 50967 crore against last year figure of Rs.45297 crore (growth of 12.52%). Total CASA percentage stood at 36.68%. 2.3 Credit Deployment Gross advances of the Bank increased from Rs.101210 crore as on 31.03.2015 to Rs.111240.28 crore as on 31.03.2016 (growth of 9.91%) as a result of Bank’s customer centric approach. Establishing Central Processing Cells at all the 33 Zones is major initiative during the year. The centralized processing is expected to improve quality of appraisal and reduce undue delays in credit delivery mechanism. Proposal movement, along with their disposal is continuously monitored using CPTMS (Credit Proposal Trail Maintenance System) and same is also used to reduce TAT (Turn-Around-Time). Efforts are continued to improve loan portfolio yield by reshuffling the portfolio mix, by increasing retail/SME & CC portfolio. 2.3.1 Sectoral Deployment of Credit While financing to various segments of the economy, the Bank has endeavored to maintain a diversified credit portfolio, with a view to ensuring credit dispersion across sectors. The Bank has continued its efforts to support core, manufacturing and priority sectors as well as infrastructure projects, which serve to drive economic growth. This focus of the Bank will continue in future, in line with the national economic growth priorities. 2.3.2 Credit Administration and Monitoring Early warning signals are captured from the CBS system on daily basis for close monitoring of stressed accounts on near real time basis. System generated SMS alerts are sent to the customers to pre-empt delinquency. An integrated web-based reporting has been introduced in the Bank to enable instant communication between branches / Zones /Head Office for effective monitoring of credit portfolio. The credit quality of borrowal accounts is further monitored through periodical asset performance review, credit audits and stock audits. Timely rescheduling of repayment terms is undertaken in deserving cases. 2.4 Asset Performance During the Financial Year (FY) 2015-16, total cash recovery in NPAs was Rs. 772.82 crore (last year Rs. 619.70 crore). Of this, recovery in Ledger balance was Rs. 645.45 crore (Rs. 430.13 crore) including, recovery in sale of assets of Rs. 48.48 crore (Rs. 63.67 crore), recovery in written off accounts was Rs.72.83 crore (Rs 113.69 crore) and recovery in cases of unapplied interest was Rs.54.54 crore (Rs 75.88 crore). This was besides upgradation of NPAs to the tune of Rs. 191.30 crore (Rs.397.63 crore). This achievement was result of intensive, follow up with the defaulting borrowers through letters, notices, visits, Recovery Camps, Lok Adalatas, appointing Resolutions Agents and Recovery Agents, actions under SARFAESI Act and through DRTs. Bank has also set up Asset Recovery Cells at Zonal offices for focused efforts for upgradation and NPA recovery at field level. The Gross NPA ratio of the bank is at 9.34 % as against 6.33 % as of 31.03.2015 due to rise in fresh slippages. Similarly the ratio of Net NPAs stood at 6.35% as on 31.03.2016 as against 4.19% a year ago as provision could not keep up pace with slippages. 2.5 Foreign Exchange Business and Export Finance During the year 2015-16, the Bank achieved merchant turnover of Rs. 29562 cr ( previous year Rs. 27925 cr) and interbank turnover of Rs. 565671 crore ( previous year Rs. 546969 cr) and earned exchange profit of Rs. 78.55 cr (previous year Rs. 75.55 cr) The outstanding export credit as on 31st March 2016 was Rs.1226.62 cr as against Rs. 1301.40 cr as on 31st March 2015. The Treasury and International Banking Branch at Mumbai (A Category Branch) and 35 B Category branches across the country cater to the international business needs of the customers of the Bank. In order to provide prompt service to Non Resident Indian Clients, Bank has a NRI Cell at Deccan Gymkhana Branch, Pune. With a view to enable branches to provide better service to NRI clients, Bank has provided instant NRI information which is updated regularly. NRI Cell A separate NRI Cell has been formed under Planning Dept since Sept 2014 to provide support to branches and to concentrate in increasing NRI business. NR deposits have grown from Rs. 1153.29 crore as on 31.03.2015 to Rs.1617.87 crore as on 31.03.2016 (growth of 40.28%). 2.6 Investments The net investments of the Bank stood at Rs. 36230.87 as on 31.3.2016 as compared to Rs. 32765.00 crore as on 31.03.2015. Investments under Held to Maturity (HTM) category consist of 78.74% while Available for Sale (AFS) comprised 21.26% of total investment portfolio as on 31.03.2016. The net interest income from investment activity increased to Rs. 2735.20 crore from Rs. 2539.53 crore during the last year (growth of 7.70%). 2.7 Borrowings: The borrowing of the Bank as on 31st March 2016 stood at Rs. 9228.10 crores including re-finance from Exim Bank to the extent of Rs. 331.27 crores. The total borrowing as on the previous year 31.3.2015 stood at Rs. 11126.72 crores. 2.8 Merchant Banking: The Bank handled 126 issues (previous year 90 issues) of Commercial Paper amounting to Rs. 54060 crores (previous year Rs. 25175 crore) for its clients as an Issuing and Paying Agent (IPA) during the year. New Initiative: In addition to GRAS (Govt. Receipts Accounting Systeme- payment of taxes) through all the Branches in the state of Maharashtra, the Bank has introduced e-SBTR (electronic Secured Bank & Treasury Receipts). • To provide Facility for On-line/Over the Counter payment of Stamp duties/ Registration fees and issue of Simple Receipt/e-SBTR through our Bank for the Inspector General of Registration & Controller of Stamps, Pune, Maharashtra. • Presently, this facility is available in the state of Maharashtra across 301 branches. 2.9 Depository Services • Bank is Depository Participant (DP) of Central Depository Services of India Ltd. (CDSL) since September 1999. • The Bank has also introduced Basic Services Demat Account Facility (BSDA) 2.10 Bancassurance • Insurance for all the securities charged to the Bank may be done invariably under Bancassurance arrangement with UII Co. Ltd. • 1504 branches are logged in as of 31.03.2016 for LIC Bancassurance business. • We had created portal for Popularization of Mahaswastya Yojana, All new as well as renewal of cases are done through the portal in T+3 days. Now, the customer having internet banking facility can make the payment online and generate the policy instantaneous. • This year, till 31.03.2016, 13 Zones declared as BIMA Zones. • During the year 2015-16, 13242 life policies and 89784 Non-Life policies were made. • The Bank earned a commission of Rs. 6.83 crore from life insurance and Rs. 4.60 crore for non-life insurance business during the year 2015-16. 2.11 Government Business • During the year 2015-16, 669450 challans of Direct Taxes and 173324 challans of Indirect taxes were collected by the branches. Our Branches are also collecting other state Govt. taxes including GRAS of Maharashtra State and the total number of Challans collected during the Year is 1171589. Total commission to the tune of Rs. 9.21 Cr was received on Tax collection business from Central Government. • The Bank is processing and crediting monthly pension payments of more than 1,14,320 Central Government, Defence, Railway and Telecom pensioners at Central Pension Processing Cell (CPPC), Pune. The commission on Government Business (Pension) for the Year 2014-15 is Rs. 13.05 Cr. • A unique facility of direct and Indirect taxes and VAT collection of Maharashtra is provided by the Bank, at the branch counter in all branches through Maha e-seva services. E-payment of Taxes facility available for net banking customers is also available for direct / Indirect Taxes / VAT payments (for Govt. of Maharashtra). • Presently Bank is having tax collection arrangement with 9 state, 2 states i.e. Rajasthan & Chhattisgarh are in pipeline, Bank is in process of technical integration with other state Governments. •Bank has already started tax collection Business in Madhya Pradesh State. 2.12 Non Interest Income 2.13 Income, Expenditure and Profitability The total income of the Bank grew from Rs. 13671.42 crore in FY 2014-15 to Rs.14072.29 crore in FY 2015-16 (growth of 2.93%) 2.15 Capital from Government of India The Bank issued 10,51,50,787 equity shares amounting to Rs. 394.00 crore (including share premium) to GoI on preferential allotment basis. Consequent upon the capital raised during the year, as above, the share holding of GOI in equity share capital stood at 81.61% 2.16 Networth The Bank’s Net worth increased from Rs.6975.77 crore as on 31.03.2015 to Rs.7403.05 crore as on 31.03.2016. 2.17 Capital Adequacy Ratio The Capital Adequacy ratio stood at 11.20% as on 31.03.2016, against the minimum of 9.63 %( Including CCB) prescribed by RBI in terms of Basel III norms. The Common Equity Tier 1 Ratio stood at 9.02%. 2.18 Dividend The Board of Directors of the Bank has not recommended any dividend for the Financial year 2015-16. 3 .1 Branch Expansion During the year, the Bank opened 15 new branches. As on 31.03.2016, the total branch network comprised of 1895 branches spread over 30 states and 4 union territories. The branch network includes specialized branches in the area of foreign exchange, Government business, Treasury and International Banking, Industrial Finance, Small Scale Industry and Hi-tech agriculture, Pension Payment, Self Help Groups etc. 3.2 Human Resources Management The Bank has put in place a comprehensive HRM Policy that provides the road map for acquiring appropriate & need based human resources, its development through training, job enrichment, reward and recognition for better performance, career progression, welfare and retention. During the year the Bank recruited 351 Probationary Officers, 113 Agril. Field Officers, 10 Rajbhasha Adhikari, 14 Law Officers, 1 Company Secretary & 34 Chartered Accountants in Officer Cadre and 61 Clerks & 36 Armed Guards were also recruited. During the year, 1044 employees ceased to be in service on account of retirement, VRS, resignation, termination and death. During the year 2015-16, 106 Substaff were promoted to Clerical cadre and 300 Clerks were promoted to Officer Cadre. To recognize outstanding performance in Banking activities and to motivate others to perform better, various schemes like Performance Linked incentives to all staff of Best Performing Branches etc. are in vogue. The top three branches in disbursement and recovery of advances to SC/ST community were awarded Rolling Trophy in name of Bharat Ratna Dr. Babasaheb Ambedkar. The Bank has been allocating up to 3 per cent of its net profit towards various schemes for the welfare of staff including retired staff. The welfare schemes are administered by a Central Welfare Committee consisting of management & employees representatives. The Bank has healthy industrial relations. The Bank has been complying with the reservation policy of Govt. of India. Special Cells at Head Office and all Zonal Offices are functioning to monitor the implementation of the reservation policies and to redress grievances of SC/ST/OBC & Physically challenged employees as well as ex-servicemen. The Bank has designated Chief Liaison Officers at Head Office and has set up SC/ST Cells at all Zonal Offices. During the year periodical meetings were held with SC/ST/OBC Employees Association to discuss implementation of reservation policy and other constitutional safe guards and also to facilitate involvement in business growth. Compassionate Appointments - A Scheme for ‘Compassionate Appointments’/ Payment of Ex-gratia lumpsum amount“ to /of heirs of employees dying in harness or retiring due to incapacitation framed as per the directives of Government of India, has been implemented. The Contributory Group Insurance Mediclaim Policy for all employees including retired employees, has been renewed w.e.f. 1.4.2016 and the Sum insured is increased upto Rs.10.00 Lacs for existing employees. The reimbursement of examination fees & payment of cash incentive / Honorarium in respect of courses from Indian Institute of Banking & Finance, MBA from reputed Institutions & CFA has been widened by adding five more courses in the list of courses for reimbursement of fees thereby making total 22 courses eligible for reimbursement of examination fees. A policy for granting special leave and 100% reimbursement of hospitalization expenses to officers when he meets with an accident / injury while on duty is in place. Policy for ‘granting incentives, to officers posted & transferred in North eastern zones from other zones’ framed as per the directives of Government of India. Training Activities: The Bank has a training system which facilitates attention to regular periodic assessment of skill gaps at various levels in relation to existing and emerging business opportunities. Skill building in credit, Forex, customer relationship management, marketing of products and services, credit monitoring and recovery, risk management, technology based banking, branch management, complying with statutory, legal and policy requirements and preventive vigilance received special attention during the year. Training programmes were also held on thrust areas like financing SMEs, retail lending, agriculture finance, soft skills and rural development. 3.3 Technology Initiatives The Year 2014-2015 was a milestone year for the Bank as far as technology implementation & up-scaling was concerned. The Year 2015-2016 is being observed as “Stabilization Year”/”Technology Augmentation Year” for the various initiatives undertaken during the Year 2014-2015, in addition to new initiatives that have been taken up for implementation during the Year 2015-2016 and enumerated as under: 1. CBS Hardware Augmentation Project covering DC & DR was undertaken & successfully completed during the year to take care of increasing transactions load and to ensure smooth functioning of CBS system at field level. 2. E-Gadgets implemented in a big way during the year with commissioning of Self Update Pass Book Printers, Queue Management Solution & Bunch Note Acceptor Machines at various locations across the Bank. The same will be continued during next financial year to ensure fulfillment of customer requirements/satisfaction. 3. Latest ISO 27001:2013 Certification secured by the Bank for its four IT Divisions, thereby continuing the Quality ISMS (Information Security Management System) in our Bank. 4. ‘Maha Mobile’ New Gen Mobile Banking Application which was launched in January 2015 got stabilized during the year and was well received by our customers. As on 31/03/2016, 112210 users are registered for this facility. 5. ‘Mahasecure’ a Two Factor Authentication (2FA) Solution for Retail Users & active Corporate Users has been implemented as a part of the effort to respond to the ever evolving information security trends and the responsibility to enhance security features in the Internet Banking facility. One Time Password (OTP) for Fund Transfer is also implemented under Mahasecure Application. No phishing attacks have been reported after the implementation of this product. 6. IMPS-P2A (Immediate Payment System - Person to Account) & IMPS-P2P (Immediate Payment System - Person to Person) Fund Transfer facility made available under Internet Banking from 12/06/2015 & 23/12/2015 respectively. Using this facility, customers can do inter bank as well as intra-bank (24 x 7) fund transfer upto Rs.5,000/- in a day. Bank’s Own EFT Switch which was implemented Live from 08/05/2014, got fully stabilized during the year. As a result of the implementation of own EFT Switch, Bank is deriving significant advantages like reduced turn-aroundtime to introduce new ATM Product, Better customer experience, Reduced risk, Instant Hot-listing of a card through multiple channels, Value Added Services etc. Bank has collaborated with VISA for International Debit Cards and with NPCI for Rupay Debit Cards. Bank has commenced issue of Rupay Platinum Cards from 28/03/2016. As on 31/03/2016, the total card base of the Bank stood at 57.19 Lakhs. Various facilities are being provided through our Internet Banking platform for facilitating online payment of taxes, utility bill payments, online shopping / e-commerce, railway reservation, LIC premium payment, e-SBTR etc and facility for viewing tax credit statement 26AS and Demat account with the Bank. Bank has robust Information Security Management System (ISMS) framework in place. Its information security policy statement being: “Bank of Maharashtra is committed to protect and safeguard the critical information of all stakeholders in order to ensure secure business operations”. Bank has also implemented major security initiatives recommended by Gopalakrishna Committee for internal and external customers. Bank has in place a captive Security Operations Centre (SOC) for monitoring Critical IT Infrastructure on 24 x 7 basis. The SOC shall enable the Bank to effectively address security threats by constant, proactive monitoring of security events and meet the compliance requirements. This has enabled the Bank to automate the vulnerability discovery process by constantly analyzing the logs generated by the core IT security and application infrastructure. The other services namely Anti- Phishing & Anti-Trojan services are also implemented. Bank is handling the e-Payments of State Government Taxes of Maharashtra, Karnataka, Tamil Nadu, Madhya Pradesh & Rajasthan States. Inward Clearing in Mumbai, Pune & Ahmedabad Centers is already outsourced. Now, we have started Outsourcing of Outward Clearing in Nagpur. On stabilization, it shall be extended further to Pune & Mumbai Centers, so as to move towards the goal of Centralized Clearing in future. Bank has implemented Scientific Transfer Pricing Mechanism / Fund Transfer Pricing during the year. In Year 2016-2017, Bank proposes to take up / implement the following IT Initiatives - 1. Risk Based Internal Audit Software. 2. e-TDS Software. 3. Unified Payments Interface (UPI) of NPCI. 4. Bharat Bill Payment System (BBPS) of NPCI. 5. Risk Based Supervision (RBS) 6. International Financial Reporting Standards (IFRS). 7. Rupay Platinum Cards. 3.4 Customer Centric Initiatives taken by the Bank The Bank has pursued high standards of customer service to ensure customer satisfaction throughout the year by implementing all major recommendations of Goiporia Committee, Dr. S.S. Tarapore Committee and Damodaran Committee. As a member of Banking Codes and Standards Board of India (BCSBI), Bank has adopted Code of Bank’s Commitment to Customer and Bank’s Code of Commitment to MSMEs. Bank has printed folder called as “My Folder” containing all customer service policies, information on service charges, guidelines on Government Schematic Loans, Ombudsman and BCSBI Codes. The same is printed in Marathi, Hindi and English and supplied to all branches and Zones for making the same available to all customers on demand. Duly documented policies approved by the Board, on “Deposits”, “Collection of Cheques”, “Redressal of Grievances”, “Compensation” , “Operational Procedure for Settlement of Claims of Deceased Depositors” and Customer Rights Policy are in place. Customer Service Committees are formed at all branches and their meetings are conducted regularly on monthly basis. The Standing Committee on Customer Service at Head Office and Zonal Level Customer Service Committees at Zones, meet regularly to address and review various customer related matters and to take steps, for an improvement, on an ongoing basis. The Committee of the Board on Customer Service meets on quarterly basis to monitor the quality of the customer service, redressal of customer grievances and to ensure customers satisfaction. Full-fledged grievances redressal machinery is in place to respond promptly to customer grievances. The Bank has started internet based mechanism, Standardized Public Grievances Redressal System (SPGRS) for lodging the complaints or to give suggestions / feedback on services by the customers and for providing acknowledgement and status of their feedback / complaints as per the directions of Government of India. Kiosk Machine has been installed at Head Office to enable the customer to register online complaints / suggestions and is in operation since 14.03.2013. 3.5 KYC/ AML Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards / Combating of Financing of Terrorism (CFT) and Obligation of Bank under Prevention of Money Laundering Act (PMLA) 2002. The Bank has Board approved KYC-AML-CFT Policy in place. The said Policy is the foundation on which the Banks implementation of KYC norms, AML standards and CFT measures is based. The full KYC compliance entails staff education as well as customer education for which the following measures are taken by the Bank. A comprehensive list of KYC documents is uploaded on the Banks web site for the benefit of customers. Regular training sessions are conducted on KYC-AML-CFT guidelines at the Banks training establishments to sensitize the employees. 3.6 Risk Management Bank has its Risk Management Framework in accordance with RBI Guidelines and it benchmarks itself against industry best practices. This enables it to identify measure, monitor and manage risk efficiently. It has put in place Risk Management Policies and Strategies and establishes control systems in line with Bank’s aggregate Risk Appetite. Bank has constituted Risk Management Committee at Board level to monitor risk at Bank level. Bank has also constituted sub-committees known as Credit Risk Management Committee (CRMC), Market Risk Management Committee (MRMC), Operational Risk Management Committee (ORMC) and Asset Liability Management Committee (ALCO) to monitor specific risk areas. These Committees are headed by Chairman and Managing Director. Executive Directors and General Managers are members of the Committees. As per RBI guidelines on disclosure requirements under Basel III Capital Regulations, Bank has published Disclosures on quarterly and half yearly basis and put them on the Bank's website. 3.7 Inspection & Audit: The Inspection and Audit system and various measures of internal control are adopted by the Bank to ensure identification /assessment and mitigations of various risks. Internal Audit of branches As per Seth Committee guidelines the Bank is conducting Risk Based Internal Audit of branches. RBIA of 1139 Branches which were due for Audit during the year including Top 142 Branches in terms of Business, were conducted. The Bank has implemented Off-site monitoring system since 2015 to strengthen the internal control system in which reports on some important/ sensitive areas are extracted from the CBS system on daily/weekly/monthly basis so as to guide the branches to take timely action for rectification. The Bank proposes to procure and implement web based integrated audit software for conducting various types of audits. Surprise/Snap Inspection:- Surprise/Snap Inspection of 12 branches were undertaken during the year, focusing mainly on high risk areas in pursuance of Ghosh Committee Recommendations. Concurrent Audit:- As per approved Audit Plan for 2015-2016, 498 branches and two departments of the Bank are covered under Concurrent Audit. Bank’s 75.78% total business is covered under concurrent Audit. Income and Expenditure Audit (I.and E. Audit) Income & Expenditure audit was carried out at 263 branches as per approved plan for the period 01.10.2014 to 30.09.2015 having total business above Rs. 25.00 crore and advances above Rs.5.00 crore. Expenses Audit of Zonal Office : - In order to have control over expenditure at Zonal offices a system has been put in place through half yearly Expenses Audit. The Audit is conducted once in half year i.e. March and September. The expenses audit of 33 Zones was conducted as of 30.09.15. Management audit: For assessing the effectiveness of Zonal Offices and HO Departments in terms of supervision, control, profitability and growth in business, Management Audit of 22 Zonal offices and 17 Departments at Head Office is carried out during the year 2015-16. RBI Inspection under Section 35 of the Banking regulation Act:- The Bank is subject to RBI inspection under Sec.35 of the Banking Regulation Act during the year. Besides that 1 branch was also inspected by RBI during the year. AML: IBA has advised the Banks to implement 88 parameters so far for generation of AML alerts. Bank has implemented 43 parameters out of 49 parameters as per IBA guidelines and the remaining 6 parameters are related to 3rd party products. In addition to these the FEX centers/branches have been sensitized on the guidelines on Trade Based Money Laundering issued by FIU-IND to prevent fraud/money laundering. 3.8 Vigilance: As per Central Vigilance Commission (CVC) guidelines, the Bank has adopted Integrity Pact & appointed Independent External Monitors (IEMs), for independent review of compliance of obligations by the parties under Integrity Pact. This system will ensure transparency, equity & competitiveness in large value procurements. To enlighten the participants on preventive vigilance aspects, a session on preventive vigilance is included in every training programme. During the accounting year 88 sessions on preventive vigilance were conducted by vigilance department, where in 2325 employees from different cadres participated. As a part of preventive vigilance exercise Zones are undertaking vigilance inspection of Branches, which has helped in detecting the fraud. 3.9 Compliance: The Bank has put in place a Compliance Policy, based on the guidelines of Reserve Bank of India. The Compliance Department is having a Chief Compliance Officer who monitors the compliance functions. It ensures the implementation of the statutory / regulatory guidelines coming into force from time to time. The issues relating to regulatory / statutory compliances are addressed appropriately. Submission of various regulatory returns is also monitored. 3.10 Marketing & Publicity: With a view to publicize Bank’s various products and also brand image coupled with Corporate Social Responsibilities, Bank has sponsored various programs like “sponsorship to Sharda Shakti, Pune for organizing Seminar on "Women Health Challenges and Solution" in Pune, Sponsorship to Nasik Kumbh Mela, Sponsorship to TERRE Policy centre for organizing Green Olympiad, Sponsorship to 14th Pune International Film Festival, Donations to National Sports Development Fund (NSDF), Old Age Home Chennai during Chennai Flood, Rotary Club Nigdi for the construction of water Tank in Nigade Village, Balewadi Stadium for providing “7 Water Coolers, “Shrutakevali Education Trust” for Bahubali Children’s Hospital, Shravanabelagola, Karnataka, Donation to Prakrit Bharati Academy Publishing 10 books on Indian Culture, Religions. 3.11 Citizen’s Charter: The Bank has adopted the Charter since 2000–01, which details the duties and responsibilities of the Bank towards its customers. The charter is displayed at all the branches and Bank's website. The Bank has also adopted a citizen’s charter of RBI on exchange of notes and coins. 4. SOCIAL BANKING 4.1 Priority Sector Lending It has been the constant endeavor of the Bank to facilitate equitable and sustainable economic development by timely and hassle-free availability of credit for productive purposes to Small and Marginal Farmers, Micro and Small Enterprises, Retail Traders, Professional and Self Employed, Women Entrepreneurs and entrepreneurs from economically weaker sections. The outstanding advances under Priority Sector as of 31st March 2016, aggregates to Rs. 41,485 Crore constituting 39.82% of the Adjusted Net Bank Credit (ANBC). (Growth of Rs. 2,391 Crore, 6.12% over last year). 4.2 Agriculture The Bank disbursed Rs.8179 Crore for agriculture and allied activities during the year 2015-16. The total outstanding advances to agriculture sector reached a level of Rs.17174 Crore as on 31.03.2016 (growth of 10.65 per cent). Bank focused on growth of investment credit under Agriculture during the year 2015-16 and disbursed Rs.1648 Crore. Bank also entered into strategic tie-up arrangements with Tractor Manufacturers and Micro Irrigation Companies for promoting farm mechanization and micro irrigation activities during the year. Tie up arrangement is also made with three Collateral Manager to capture market for expanding loan against ware house receipts. The Bank undertook awareness/sensitization programmes for all the branches for increasing advances to agriculture by providing hassle free credit to farmers. 4.2.1 Mahabank Kisan Credit Card (MKCC) This scheme has gained popularity especially in rural areas where it is being propagated successfully and vigorously. The Bank has issued total 5,72,221 Kisan Credit Cards to farmers. Credit flow to MKCC beneficiaries has reached to the level of 6691 Crore as on 31.03.2016 (growth of 19.70 %). 4.3 Micro, Small and Medium Enterprises (MSME) SMEs are recognized as a major growth engine for the Indian economy. They generate opportunities for direct and indirect employment by facilitating use of natural resources and local skills to stem the tide of migration to urban areas and promote low investment enterprises. Finance is made available to viable enterprises at an attractive and low rate of interest. On line enquiry portal is made available on the Bank's website. Our Bank has adopted Simplified Loan Application for MSMEs for loans up to Rs. 1.00 Crore and the same is displayed on the Bank's website. The Bank has also adopted Bank's Code of Commitment to Micro and Small Enterprise and the same is displayed on the Bank's website. The Bank's lending to Micro, Small and Medium Enterprises (Priority + NP) which was at the level of Rs.20,657 Crore as at 31.03.2015, increased to Rs.22,334 Crore as at 31.03.2016. Advances to Micro enterprises under priority are 7.79 % of ANBC against RBI target of 7.00 % for March 2016. For promoting finance under this category, Bank has entered into strategic tie up arrangements with Truck / Vehicle / Tractor / Passenger car manufacturers. Bank has also entered into a MOU with Bharatiya Yuva Shakti Trust and de-Asra foundation for Credit facilitation and hand holding of the Micro entrepreneurs especially under Women and SC/ST categories. Centralized Processing Cell set up last year at all Zonal Offices for speedy disposal of MSME proposals has been streamlined. Bank has launched a new product namely “Mahabank MSME Credit +” for financing to MSME borrowers during the FY 2015- 16 in addition to five products introduced last year. 4.3.1 MUDRA: With the introduction of Pradhan Mantri MUDRA Yojana (PMMY) which mainly consists of non-farm enterprises in manufacturing, trading and services whose credit needs are below Rs. 10.00 lakh. Bank is giving special attention to this segment. Loans given to this segment for income generation are known as MUDRA loans under Pradhan Mantri MUDRA Yojana (PMMY) and branded accordingly. Bank has disbursed Rs.1290.00 Crore under PMMY against the target of Rs.1155.00 Crore as on 31.03.2016. Bank achieved 111.69% of target allotted by Government under PMMY. Bank has launched MUDRA Card on 16.9.2015. MUDRA Card issued as a Rupay Debit Card which is hassle free flexible credit product that meets working capital needs of Micro & Small Entrepreneurs and cash can be withdrawn from any ATM or purchase from Merchandise using POS machine. Bank has issued 7537 MUDRA Cards as on 31.3.2016 4.3.2 Coverage under CGTMSE Scheme Under Credit Guarantee Fund Scheme for Micro, Small and Medium Enterprises of Government of India credit facilities up to Rs.100.00 lakh are covered, wherein no collateral security and third party guarantee are insisted by the Bank. For the accounts covered under this scheme, Bank is bearing 50% annual guarantee fee for loans above Rs.10.00 lakh and annual guarantee fee for loans below Rs.10.00 lakh is borne by borrower. The Bank has sanctioned loans of Rs.2,005.54 Crore to 21,287 borrowers under this scheme up to March 2016. During the current FY, coverage under Credit Guarantee Fund Scheme has increased by 11.10%. 5. IMPORTANT SCHEMES/ PROJECTS OF THE BANK 5.1. Credit Flow to Retail Sector The Bank is providing retail loans for salaried persons, professionals, businessmen and pensioners for purchase of housing properties/ plots, repair/ renovation of house, purchase of consumer durables, two/four wheeler vehicles, education and loan for other personal needs etc. The retail loan portfolio of the bank is Rs.12567.96 Crore. 5.2. Mahabank Gold Loan Scheme Gold ornaments are the traditional and inherited form of savings among the people in India. Being one of the most liquid and precious asset, it serves as a dependable and acceptable form of security to raise loans for meeting immediate financial needs for business, agricultural, consumption purposes such as marriage, medical, educational expenses etc. People borrow money by pledging Gold Ornaments at very high rate of interest. To tap the potential of gold loans as a lucrative asset and to meet the credit requirement of our customers. With a view to meet the credit requirement of our customers, Bank has launched a new retail loan product “Mahabank Gold Loan Scheme” w.e.f. 26.09.2014. The total portfolio of Gold Loan of our Bank as on 31.03.2016 is Rs. 31.86 Crore. 5.3. Housing loan to public The Bank has in place Housing Loan Scheme to meet the needs of all economic segments including NRIs. Financing housing sector in rural and urban parts of India is a thrust area. The housing loan portfolio of Bank is Rs. 10550.79 Crore as on 31.03.2016, which constitutes 83.94% of total retail portfolio of the Bank. The housing loan schemes of the Bank were revisited and revised schemes were launched like “purchase / construction of new / existing house / flat, repairs / renovation / alteration of existing house / flat, purchase of plot and construction thereon”. The Bank has also launched “Maha Combo Loan Scheme” for purchase of house and a car taken together. 5.3.2 Mahabank Top-Up Loan Scheme In order to extend additional credit support to our standard housing loan borrowers, Bank has launched “Mahabank Top Up loan Scheme” w.e.f. 26.02.2016. Under this scheme credit is extended for repair / renovation / furnishing of house, children’s education, Marriage of Children, Medical treatment, buying a vehicle or hi-tech gadgets etc. 5.4. Model Educational Loan scheme With the objective of ensuring that all deserving students get opportunity to pursue higher education, the Bank implemented a Model Educational Loan Scheme as per IBA guidelines. As of March 2016, the Bank had lent Rs. 804.12 Crore to 30554 students. The Bank has provided the facility of submission of application for education loan through web-access (on line) also. Bank has also introduced a new feature called “Pre Approved Education Loan”, to its “Model Education Loan Scheme” to address the requirement of multiple sanction letters required by students applying for study at foreign universities. Bank also has “Model Education Loan Scheme for as Skill Loan, where loans can be sanctioned for completion of short duration job oriented skill development programmes. A loan up to Rs.1.50 lakh can be sanctioned under the scheme. 5.5. Centralized Processing of loans Bank has established Centralized Processing Cells for retail / commercial advances at all its 33 Zones for hassle free & due diligence of loans with aim to improve turnaround time. 5.6. Micro Finance The Bank has always recognized the importance of credit to rural and urban poor for taking economic activity. The SHGs have proved to be effective instruments for empowerment of women Bank has specialized SHG branches in all six lead districts and at Goregaon, Mumbai. As on 31.03.2016, there were 139194 SHGs formed by the Bank, out of which 107286 SHGs have been linked with the bank credit with outstanding of Rs.154.62 Crore as on 31st March 2016. 5.7. Assistance to SC/ST beneficiaries: The Bank has been actively extending finance to SC/ST beneficiaries through various schemes. Total finance as on 31.03.2016 to SC/ST beneficiaries stood at Rs. 1728.34 Crore, constituting 15.73 per cent of advances to weaker sections. 5.8. Weaker Sector Advances: Bank is providing credit facilities to small / marginal farmers, share cropper, landless labor, SC /ST Beneficiaries, Self Help Groups, Joint Liability Groups, The total portfolio of weaker Sector advance of our Bank as on 31.03.2016 stood at Rs. 10,985 Crore constituting 10.55% of ANBC. 5.9. Advances to Minority Community A special cell has been set up at Head Office to review and ensure smooth flow of Credit to minority community. The branches were identified in minority concentrated districts and special targets were allotted to these branches for lending to minority communities. As of March 2016, advances to Minority community are at Rs. 3037.22 crore as against Rs.3264.25 Crore of previous year. 5.10 Door Step Banking Services Bank has introduced Door Step Banking Services for its High End Customers and the services include Corporate and Retail Cash pickup and delivery & Cheque Collection Services, at Clients Doorstep. 5.11 BOM SBI International Credit Card • The BOM-SBI card base is 45347 out of which 23542 cards are used and monthly spend is approximately Rs. 12.00 Cr. •The commission received from SBI Card is Rs. 66.00 Lakhs during the year 2015-16. 5.13 ALTERNATE DELIVERY CHANNELS 5.13.1 ATMs • ATM site wise feasibility/viability study before relocation was advised and also to achieve more than 100 average daily hits per ATM. • Continuous follow up for relocation of Low hit Lobby ATMs (Total 405) has been made and relocation of 335 lobby ATMs is done by 31.03.2016 Of the remaining 70 ATMs relocations follow up is being made for early completion. • Relocation of Onsite ATMs is geared up by empowering Zonal Offices by giving specific guidelines and numbers of relocations • Zonal managers are empowered with necessary inputs to decide and shift low hit ATMs to suitable/viable locations. Analyzing the reasons for high number of hits on other bank ATM locations (Remote on us) advised zones to survey the area and relocate the low hit ATMs within the zone, additionally, Even if we have ATM in the vicinity. • ATMs are being branded with display of our products / services at prominent places like Malls, Marketing & Publicity point of view. Few such ATMs are being installed in the leading malls of Pune. Two ATMs with branding are made operational in two leading malls in the city of Pune. • 100% relocation of low hit lobby ATMs is completed in Twelve (12) Zones viz. Aurangabad, Delhi, Goa, Jalgaon, Indore, Jaipur, Solapur, Latur, MCZ, PCZ, Satara & PEZ. Remaining Zones are followed up on daily basis. 5.13.2 INTERNET /SMS/Phone Banking Bank could achieve an increase of 28% in Internet Banking, 31% in Phone Banking and 33% in SMS banking over the previous year. With continuous follow up and increase in net security through the Mahasecure for IBN users, substantial rise in users/online transactions is expected. 5.13.3 MOBILE BANKING • Maha Mobile functionality has been customized and simplified for increasing the enrolments. • A user manual on Internet Banking & New Maha Mobile functionality is prepared & sent to field staff for ready reference & marketing of the technology based products. •Bank has introduced a Incentive schemes for Branch staff & Cash Back Offer to customers for Downloading “Maha Mobile App” in the month of December 2015 • Maha Mobile App has been increased by 15744 nos. in the month of December 2015. • Presently, there are 112210 Mobile Banking users. 5.14 Tie Ups 5.14.1 Payment Gateway Services: • Presently we are providing the facility of Payment Gateway to all our customers through our online aggregators. 5.14.2 ‘Remit2india’ facility • “Remit2India” is a web-based, person to person money transfer system that allows individuals particularly our Non-Resident Depositors to remit foreign currency amount for credit to the Beneficiary account in India. •Although the income is very less in this product but this facility/Services which we may be useful to attract NRI customers. 5.14.3 ECS Mandate and Direct Debit System • Bank has a tie up with M/s Bajaj Finance Limited (Auto Finance) for Centralized ECS mandate verification & centralized direct debit system where in bank is receiving commission of Rs.50,000/- per month for mandate verification & centralized direct debit. • Similarly, Bank has also a tie up with M/s Bajaj Finance Limited (Consumer Finance) & TVS at Banglore. 5.14.4 Online Fee Collection • We have an arrangement in CBS for online fee Collection of different institutes; Organizations etc. wherein Bank will be receiving the commission. • We have already started IBPS (Indian Banking Personal Selection) online fee collection, over the counter fee collection for Amravati collectorate etc. 5.14.5 Online Trading • Bank has introduced Three Brokers under our Online Share Trading facility. i.e. M/s Religare Securities Limited, M/s Reliance Securities Ltd. & M/s Ventura Securities Limited for Online Share Trading. • Zones have been advised to open the maximum trading accounts. 6. CORPORATE SOCIAL RESPONSIBILITY The Rural Development Centers at Hadapsar- Pune and Bhigwan in Pune District of Maharashtra have been undertaking various rural developmental activities for the benefit of farmers’ viz. Vermi compost, Re-development of Saline Soils, Soil Testing etc. Bank has established Soil testing lab (STL) through MARDEF Trust at RDC Bhigwan. The Soil Testing Laboratory has analyzed 7418 Soil and Water samples in the year 2015-16 and accordingly counseling is done. Farmers from the districts of Pune, Ahmednagar, Solapur and Satara are taking benefit of the lab. A Trust viz. Mahabank Agricultural Research and Rural Development Foundation (MARDEF) established by the bank, undertakes various projects and village improvement programmes. MARDEF is imparting training to farmers on various subjects in Agriculture. Trust has implemented 94 training programmes for farmers at RDC Bhigwan and Hadapsar and has benefited 2,363 farmers from April 2015 to March, 2016. The Bank has established Seven Mahabank Self Employment Training Institutes (MSETI) for providing training to rural youth and women to enable them to acquire skills for self-employment through small business enterprises. The Institute has centers located at Pune, Nagpur, Aurangabad, Amravati Jalna, Thane and Nasik. The Institute has so far imparted training to 21386 educated unemployed youths. The settlement rate is 56.00%. Gramin Mahila Va Balak Vikas Mandal (GMVBVM), an NGO formed by Bank of Maharashtra and National Institute of Bank Management is actively involved in formation, nurturing, training and ensuring linkage of SHGs to Bank Credit. The Bank has opened Financial Literacy Centers in Six Lead Districts namely Pune, Nasik, Aurangabad, Satara, Jalna and Thane for creating awareness about banking schemes. 7. LEAD BANK SCHEME 7.1 Lead Bank Scheme The Bank has Lead Bank responsibility in seven districts of Maharashtra State viz. Aurangabad, Jalna, Nasik, Palghar, Pune, Satara and Thane. Every year district credit plans for the districts are prepared and implemented with the cooperation of other banks as well as in coordination with District Collectors of respective Districts. 7.2 State Level Bankers’ Committee The Bank is the Convenor of State Level bankers’ Committee (SLBC) for the State of Maharashtra and prepares State Annual Credit Plan. The plan for the year 2015-16 was for Rs. 1,86,620 /- crore which is highest in the country. The same was approved in a special meeting held under the Chairmanship of Hon’ble Chief Minister of Maharashtra. SLBC also ensures holding of quarterly meetings regularly to oversee the implementation of State Annual Credit Plans, priority sector lending and Govt. sponsored schemes in the State. Apart from regular SLBC meetings, various other meetings are also organized by SLBC to coordinate between various member banks, State Government, Government Agencies, Reserve Bank of India, NABARD and the Central Government. SLBC coordinates a network of more than 15,000 bank branches in the state. In FY 2015-16, the State suffered due to continual draught in more than 16000 villages and also onslaught of natural calamities, the brunt of which is mostly borne by Agriculture and related activities. SLBC has always been very proactive in such calamities by issuing necessary guidelines in respect of relief measures, organizing special meetings and guiding the members whenever necessary. As SLBC convener, Bank of Maharashtra coordinated implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) in the State of Maharashtra. A total of 136 lakh accounts were opened in the State and the State was declared as saturated for the purpose of opening of accounts. The process of opening of accounts is continued. S L B C Maharashtra received award for highest Adhar seeding of PMJDY accounts from Department of Financial Service, MOF New Delhi. 7.3. FINANCIAL INCLUSION / PMJDY: Bank continued to actively participate in the Pradhan Mantri Jan Dhan Yojana (PMJDY) announced and launched by the Prime Minister of India. Survey of all allotted 3051 rural Sub Service Areas (SSAs) and 755 urban wards were conducted for identification of households having no bank account. The Bank has engaged 2,974 Bank Mitrs through corporate BCs and under own BCA model in all the allotted SSAs. The Bank Mitrs are being paid monthly remuneration regularly and minimum remuneration is ensured by paying fixed monthly pay and variable commission. Total 32.18 lakh Savings Bank accounts have been opened by the Bank during the PMJDY campaign period and RuPay ATM Debit cards have been issued to all the accountholders. Savings accounts of all the identified uncovered households have been opened. The Bank has mobilized Rs. 531.97 Crore in these accounts opened during the campaign period. The Bank also implemented Aadhaar based account opening using e-KYC. The Bank is live on Aadhaar Enabled Payment System (Onus and Off-us) and RuPay card PIN Based transactions. The Bank has been processing the DBT (Direct Benefit Transfer) and DBTL (LPG Gas Subsidy) for the accountholders. Bank is having highest number of AEPS transactions in banking industry. The Bank has introduced micro insurance products for life (PMJJY). During this financial year 7,69,482 policies were issued under this scheme. Other accident micro insurance scheme launched (PMSBY ) was also launched and as many as 14,13,165 policies are issued under this group insurance scheme .Atal pension Yojana was also implemented with full vigour by our bank by issuing 43936 pension accounts under this scheme . The Bank has a full-fledged call centre with toll free number 18001022636 for redressal of PMJDY grievances. The Financial Literacy Material has been prepared in vernacular languages and supplied to all Branches / Bank Mitrs for supplying the same to accountholders during FLC camps. Financial literacy camps are organized different schools in districts of Maharashtra. All skilling centers /ITI are mapped under financial literacy project Bank has been awarded for excellent performance in the field of financial inclusion from prestigious institutes like IBA, DFS, and Economic Times. 8. SUBSIDIARIES/JOINT VENTURES AND SPONSORED INSTITUTIONS 8.1 Performance of Regional Rural Bank Maharashtra Gramin Bank (MGB) is a Regional Rural Bank sponsored by the Bank, having its Head Office at Aurangabad, Maharashtra State. Total no of branches as on 31.3.2016 stood at 397 in its area of operation covering 17 out of 36 districts of Maharashtra State. All 397 branches and controlling offices are now under CBS. MGB opened 06 new branches during this year. Maharashtra Gramin Bank has crossed the benchmark of Rs.10000 Cr Total Business and Rs.100 Cr Operating Profit by achieving Rs.10224 Cr Total Business and Rs.105 Cr Operating Profit as on 31.03.2016 with a YOY growth rate of 22.30% The percentage of CASA to total deposit is 53.52 %.Operating profit of MGB is Rs. 105.20 Crore (growth of 15.01 %). During the year 2015-16, MGB has grown by 22.48 % in total deposits and 22.06 % in advances. Under Pradhan Mantri Jandhan Yojana surveys of all allotted 898 SSAs and 80 wards were conducted for identification of households having no bank account. The Bank has covered all allotted SSAs by engaging BCAs. Total 4.50 lakh accounts have been opened during the PMJDY campaign period and “RuPay ATM debit cards” have been issued to all the account holders.Maharashtra Gramin Bank has actively participated in the PMJJBY, PMSBY and APY as well as the PMMY scheme declared by GoI, DFS. 8.2 The Maharashtra Executor & Trustee Company Pvt. Ltd. Maharashtra Executor & Trustee Company Pvt. Ltd. (METCO), the 100% subsidiary of Bank of Maharashtra was established in 1946 with an aim to provide services auxiliary to banking such as: - Consultation, Drafting & Execution of will - Consultation, Drafting and Management of Private Trusts / Public Trusts - Management of investments & house properties as attorney -Guardianship of minor’s property - Consultation for sale/purchase of property - Filing of I-Tax Returns for individuals The Company is located at Pune having its branch units at Pune, Vashi-Mumbai, Thane and Nagpur. It is managing about 1085 Public & Private Trusts. During the year, additional 37 Wills were added making total 1110 Wills in its custody for execution. At present, the Company manages properties both movable and immovable of 72 clients under the Power of Attorney. The Company also acts as the Trustees in respect of 170 policies under Married Women’s Property Act and as Court appointed Guardian of minor’s property in 6 cases. The net profit of METCO for F.Y. 2015-16 is Rs.41.01 lakh. It has for the first time (Maiden) proposed Dividend of 10% for the year 2015-2016 to its Shareholders. The Board of Directors has passed New Memorandum of Association and Article of Association paving way to the Company to undertake different types of other financial Services. 9. IMPLEMENTION OF OFFICIAL LANGUAGE POLICY During the year 2015-16, the Bank has achieved various remarkable achievements in the field of Official Language implementation: Mumbai based prestigious Institution in the field of Hindi, ‘Aashirvad’ awarded following trophies in a grand function held on 23.09.2015 to the Bank: ‘RajbhashaGourav’ Award to Bank’s General Manager (HRM and Rajbhasha) Shri Manoj Biswal. 'Special Award' to Bank of Maharashtra for Better Hindi Implementation during the year 2014-15. On 07th October, 2015 Hindi day function was held in Head Office, Pune. Shri S. Muhnot, Chairman & Managing Director of the Bank presided over the function. Dr. Sunil Deodhar, renowned Hindi litterateur & Programme Executive of Akashvani Pune was the Chief Guest. Shri Manoj Biswal, General Manager, HRM & Rajbhasha was also graced the Function, Bank’s Executives, Officers & Employees were also present.Bank’s Internal Rajbhasha Trophy Scheme winner Zonal Offices, Branches and Head Office Departments were awarded during the function. An All India Rajbhasha Seminar was organized in Bengaluru on 28th and 29th December, 2015 for all Official Language Officers of the Bank. Shri S. Muhnot, Chairman & Managing Director of the Bank inaugurated the seminar. Shri Manoj Biswal, General Manager, HRM & Rajbhasha guided all the participants. Rajbhasha Vibhag, Head Office, Pune published a collection of story stories ‘Anubhuti’ written by bank’s own officers and employees. As per instructions issued by DFS, Ministry of Finance, Govt. of India a bridge-building exercise between Hindi and other Regional Languages, our bank sponsored numerous Hindi and Regional language programmes in various Zones. Sponsored programmes include literary meets, dramas, folk music and cultural programme. Monthly Rajbhasha E-Patrika is being regularly published every month. As a new initiative Brail script of Rajbhasha E-Patrika is also published for the benefit of visually challenged employees of the Bank. During its visit on 17th September, 2015 to Lucknow, Committee of Parliamentary Committee on Official Language reviewed Official Language Implementation work of Bank's Lucknow Zonal Office. The honourable members of the Committee expressed their satisfaction regarding progressive use of Hindi and the implementation of new initiatives by the Bank. Department of Financial Services, Ministry of Finance, Government of India, New Delhi, India has organized All India Rajbhasha Seminar & Review Meeting in Jaipur in the third quarter of 2015-16 on 06th and 07th November, 2015. Our Bank's General Manager Human Resources Management and Rajbhasha, Shri Manoj Biswal represented the Bank in the programme and addressed the executives of all banks. Joint Director, Department of Financial Services, Ministry of Finance, Government of India, New Delhi, Jaipurhas inspected our Jaipur Zonal Office on 05.11.2015. He appreciated Hindi work of Jaipur Zonal Office. Bank of Maharashtra is convener of Town Official Language Implementation Committees of Mumbai, Pune, Solapur, Latur & Jalgaon. All the five Town Official Language Implementation Committees convened by the Bank conducted various activities throughout the year and organized meetings as per schedule. Our bank was awarded first prize in “C” Region on 26th November, 2015 by Town official Language Implementation Committee (Bank), Kolkata. Our bank was awarded Second prize by Town official Language Implementation Committee (Bank), Nagpur. 10. SECURITY Proactive steps were taken in view of the security requirements at the branches and for Bank’s staff and also for provisioning of physical security infrastructure at all branches. This was done after analysis of the threat perception, current crime scenario, crime pattern, modus operandi of bank robberies, the breaches of security and fire incidents besides equipping and training the security personnel and other bank staff to counter any such eventuality. 11. DIRECTORS’ RESPONSIBILITY STATEMENT The Directors confirm that in the preparation of the annual accounts for the year ended 31.03.2016: - The applicable accounting standards of the Institute of Chartered Accountants of India, have been followed along with proper explanation relating to material departures, if any; - The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, are consistently applied and proper disclosures are made for changes, if any; - Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and the profit of the Bank for the year. - Proper and sufficient care was taken for maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks, in India; and - The accounts have been prepared on a going concern basis. 12. CHANGES IN THE BOARD OF DIRECTORS - During the year 2015-16, the following changes took place in the Board of Directors: • Shri R. Thamodharan was elected as Shareholder Director of the Bank w.e.f 30.06.2015. • Dr. Archana R. Dholakia was appointed as Part time Non Official Director of the Bank w.e.f 28.01.2016. 13. ACKNOWLEDGEMENTS The Board of Directors wishes to express sincere gratitude to the Government of India, the Reserve Bank of India, the Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Indian Banks’ Association and Stock Exchanges and CDSL for their valuable advice and support; to the customers and shareholders for their patronage; to the correspondents and associates for their cooperation and to all the members of staff of “Mahabank Family” for their unstinted commitment and contribution to the overall development of the Bank. For and on behalf of the Board of Directors (S. Muhnot) Chairman and Managing Director Place: Pune Date: 12th May, 2016 |