The Board of Directors is satisfied to put before you, the 88th Annual Report of the Bank alongside the Audited Balance Sheet as at March 31, 2016 and the Profit and Loss Account for the year finished March 31, 2016.

Dividend

The Board of Directors suggested a profit of half (duty free in the hands of investors other than Individuals whose profit pay is above Rs.10 lakh), i.e., @ Rs.0.50 per Equity Share of face estimation of Rs.1/ – per share.

Extension Programmed

The Bank had been fruitful in augmenting its system crosswise over India with 834 branches, 42 expansion counters and 1287 ATMs. The Bank has opened 29 new workplaces (12 branches and 17 augmentation counters) and 87 ATMs the nation over amid the budgetary year 2015– 16. The branch arrange now covers 30 States/Union Territories.

The Bank intends to open a greatest of 50 new workplaces (with a blend of Branches and Extension Counters) and 150 ATMs (counting 50 Cash Deposit Machines) amid the budgetary year 2016– 17.

Capital and Reserves

The Bank's issued and paid up capital remained at Rs.135.03 crore as on March 31, 2016. Amid the year, 157005 investment opportunities conceded under Employee Stock Option Scheme had been practiced by qualified representatives.

The capital in addition to stores of the Bank has climbed from Rs.3,589.40 crore to Rs.3,841.93 crore because of activity of alternatives and furrow back of benefits amid the year.

The Capital to Risk Weighted Assets Ratio (CRAR)– Basel III

The Capital to Risk Weighted Assets Ratio (CRAR) of the Bank as on March 31, 2016 as indicated by Basel III rules is 11.82 as against the statutory necessity of 9.625 (counting Capital Conservation Buffer). Level I CRAR constitutes 9.83 while Tier II CRAR works out to 1.99.

The Bank takes after institutionalized approach, Standardized Duration approach and Basic Indicator approach for estimation of capital charge in regard of credit hazard, advertise chance and operational hazard individually.

Business Achievements

The Bank has accomplished a Gross Business of Rs.97,191.52 crore, comprising of Total Deposit of Rs.55,720.73 crore and Gross Advances of Rs.41,470.79 crore as on March 31, 2016.

Deposits

The aggregate stores of the Bank expanded from Rs.51,912.49 crore as on March 31, 2015 to Rs.55,720.73 crore enrolling a development of 7.34%.

The Bank amid the year concentrated on Core Deposit, the section saw a development of 14.24%. Investment funds Bank Deposits developed by 18.12% on a year on year premise. Amid the money related year 2015– 16, the Bank had opened 3.89 lakh new Savings Bank Accounts and 11,035 Current Accounts. The Bank, as a piece of compelling cost administration of liabilities, found a way to shed Bulk Deposits and Certificate of Deposit of Rs.2,055.43 crore. NRI Deposits has developed by 25.54% to Rs.14,303.09 crore.

The Bank has concurred need to significant monetary incorporation amid the period under detailing while at the same time opening new store connections.

Loans

Amid the year, the gross advances of the Bank enrolled a curbed development of 9.93%, to touch Rs.41,470.79 crore. Low development reflects, inter– alia, moderate off assume of acknowledgment and furthermore an engaged approach towards credit endorsing to guarantee nature of benefits. Add up to Priority Sector propels as toward the finish of the money related year remained at Rs.19,144.65 crore, constituting 47.44% of the Adjusted Net Bank Credit (ANBC). Presentation to rural division added up to Rs.7,902.37 crore framing 19.58% of ANBC as toward the finish of the money related year. Break– up of presentation under Priority Sector is outfitted beneath:

Investment

Bank's gross speculation portfolio remained at Rs.14,618.93 crore as on March 31, 2016 contrasted with Rs.14,086.14 crore as on March 31, 2015, enlisting a development of 3.78%. Speculation Deposit proportion moved from 27.13 as on March 31, 2015 to 26.24 as on March 31, 2016.

Benefit on special of speculation for FY 2015– 16 remained at Rs.136.54 crore. Add up to premium pay from ventures for the year was Rs.1,007.78 crore. Yield on Investments (Profit + premium earned to normal ventures) amid FY 16 was 8.48%.

Non– Performing Assets (NPA)

Amid the year 2015– 16, because of engaged and supported endeavors for early recuperation of NPAs, through incite and viable measures under the SARFAESI Act, follow up of recuperation cases pending under the steady gaze of DRTs and common courts, one time bargain settlements of records, resource deal to ARC, and so forth., Bank could recoup NPAs to the degree of Rs.451.38 crore (recuperation including up– degree Rs.134.63 crore), as against the objective of Rs.350.00 crore. Uncommon push was given on determination and guaranteeing of credit, sufficient due perseverance and change in credit organization to guarantee change in the nature of advantages.

Amid the year, the Gross NPA of the Bank has expanded from Rs.643.45 crore as on March 31, 2015 to Rs.1,562.36 crore as on March 31, 2016 and Net NPA expanded from Rs.357.05 crore as on March 31, 2015 to Rs.1185.26 crore as on March 31, 2016.

In spite of change in recuperation of NPAs, new slippage to the tune of Rs.1,342.52 crore amid the year prompted increment in the level of gross NPA to Rs.1,562.36 crore. As far as rates, the GNPA expanded from 1.71% as on March 31, 2015 to 3.77% as on March 31, 2016 and Net NPA expanded from 0.96% as on March 31, 2015 to 2.89% as on March 31, 2016.

Information Technology (IT) and IT Enabled Services

Consistently developing reliance on innovation and digitalization has changed the form of conveyance diverts of money related administrations in the Industry. Clients, today have the accommodation of innovation to Bank anyplace, whenever.

Data Technology and its immense potential to offer imaginative arrangements have vital significance for development and sustenance of the Banks. The request and desires of the clients have expanded and the turnaround time for revealing an innovation item in banks has noticeably reduced, which basically requires a hearty, lithe and versatile framework set up to execute extends appropriate from start to utilization.

The Bank, an early adopter of innovation with a view to giving safe ,secure and advantageous managing an account offices to its clients, has presented host of administrations and offices for upgrading consumer loyalty. The Bank has been effectively utilitarian with Finale Core Banking Solution (CBS) from Infosys for quite a while and is the third Bank in the nation to have relocated the most recent Finale 10 rendition from the old Finale 7 form. Being one among the principal banks to do as such, guarantees that the Bank would have an extremely hearty and recharged stage, which can be utilized for awesome client benefit.