Director's Report

IDBI Bank Ltd
BSE Code 500116 ISIN Demat INE008A01015 Book Value (₹) 35.66 NSE Symbol IDBI Div & Yield % 1.41 Market Cap ( Cr.) 76,094.75 P/E * 18.48 EPS * 3.83 Face Value (₹) 10
* Profit to Earning Ratio
* Earning Per Share

Directors' Report

Your Bank's Board of Directors is pleased to present the Report on the Bank's business and operations for the financial year ended March 31, 2023.

IntheFinancialYear(FY)2022-23,theglobaleconomystageda broad-based recovery from the COVID-19 pandemic induced output contraction but was confronted with new challenges stemming from the escalation in geo-political tensions. This resulted in higher commodity prices and thus, worsening the existing inflationary pressures. To combat the heightened price pressures, several economies across the world embarked on monetary tightening which led to increase in interest rates globally. Amidst the recessionary fears, sporadic surges in the COVID-19 cases also impacted the global demand, thereby leading to a slowdown in the cross-border trade flows. The simultaneous occurrence of these challenges weighed down the global growth momentum during the year. Like the rest of the world, India also was confronted with these challenges but withstood them better than most large economies, aided by inherent strengths that have been reinforced by wide-ranging initiatives and policy reforms in the recent years. In the post-pandemic period, the revival in economic activities has been led by the concerted policy incentives for the most vulnerable and pandemic-affected segments, higher public capex, release of pent-up consumption demand, higher investment & capacity utilisation as well as rapid normalisation of movement of people and goods. Consequently, the Indian economy continued to witness healthy economic growth in FY 2022-23. With this, India continued to remain one of the fastest growing major economies in the world. In the year 2022, India also emerged as the fifth largest economy globally with a nominal GDP of US$ 3.4 trillion. Gaining traction from the improvement in the macroeconomic conditions, the banking sector further consolidated its financial health and saw a sustained improvement in its performance. Backed by stronger balance sheets and comfortable capital positions, the banks were well-positioned to cater to the growing credit demand in the economy. The improved economic prospects saw a broad-based uptick in the credit growth from all the segments. Though the rate cycle was on upswing, the credit demand remained healthy on the back of higher capacity utilisation and higher corporate profitability. With the interest rates on deposits also increasing in tandem with the monetary policy rate, there has been a renewed shift in favour of bank deposits as an investment avenue, thereby supporting the deposit growth in the economy. Aided by the healthy growth in deposits and credit, most banks in India recorded an improvement in the financial performance during the year.

Taking advantage of the conducive business environment, your Bank adopted a series of strategic measures that helped it in recording further improvement in various financial and operational parameters during the year.


As on March 31, 2023, your Bank's aggregate deposits and advances touched ` 2,55,499 crore and ` 1,62,568 crore, respectively. Your Bank's business highlights for the period under review are presented in the following table:

Key Financials

( ` in crore)

As on March 31, 2022 As on March 31, 2023
Capital 10,752 10,752
Reserves & Surplus 30,910 34,566
Deposits 2,33,134 2,55,499
Borrowings 14,345 12,638
Other Liabilities & Provisions 12,462 17,047
Total Liabilities 3,01,603 3,30,502
Cash & Balances with RBI 27,796 16,639
Balances with Banks & Money at Call & Short Notice 7,915 12,646
Investments 82,988 99,690
Advances 1,36,955 1,62,568
Fixed & Other Assets 45,949 38,959
Total Assets 3,01,603 3,30,502
For the period 2021-22 2022-23
Total Income 22,982 24,942
Total Expenses (other than provisions) 15,487 16,206
Provisions (other than tax) 3,887 3,498
Profit/ (Loss) Before Tax 3,609 5,238
Provision for Tax 1,169 1,593
Profit/ (Loss) After Tax 2,439 3,645

During the year under review, your Bank's total income amounted to ` 24,942 crore, comprising interest income of ` 20,570 crore and other income of ` 4,372 crore. Interest expenses stood at ` 9,139 crore and operational expenses at ` 7,067 crore, accounting for total expenditure (excluding provisions and contingencies) of ` 16,206 crore.

The increase in Net Interest Income (NII) and reduction in provisions (excluding tax expenses) enabled the Bank to earn a net profit of ` 3,645 crore during FY 2022-23.

While the Earnings per Share (EPS) during the year was ` 3.39, the Book Value per Share (excluding intangible assets and Deferred Tax Asset (DTA)) stood at ` 23.67 as on March 31, 2023. The Board of Directors have recommended a dividend of ` 1 (Rupee One only) per Equity Share of face value of ` 10 each of the Bank for the financial year ended March 31, 2023, subject to approval of the shareholders at the Annual General Meeting.


Net Assets i.e. total assets minus total liabilities

Share on profit or loss

Name of the Entity As % of consolidated net assets Amount ` ( in crore) As % of consolidated profit or loss Amount ( ` in crore)
Parent : IDBI Bank Ltd. 97.55% 45,318.48 98.35% 3,645.09
Indian :
1. IDBI Capital Market & Securities Ltd. 0.71% 330.09 0.22% 8.26
2. IDBI Intech Ltd. 0.24% 110.95 0.36% 13.27
3. IDBI Asset Management Ltd. 0.29% 134.49 0.34% 12.67
4. IDBI MF Trustee Co. Ltd. 0.00% 1.72 0.00% 0.04
5. IDBI Trusteeship Services Ltd. 0.66% 305.70 1.31% 48.37
Foreign: NA NA NA NA
Minority Interest in all Subsidiaries 0.30% 138.48 0.59% 21.91
Associates (Investment as per the equity method)#
1. Biotech Consortium India Ltd. NA NA - -
2. National Securities Depository Ltd. NA NA 1.11% 41.13
3. North Eastern Development Finance Corporation Ltd. NA NA - -
4. Pondicherry Industrial Promotion Development & Investment Corporation Ltd. (PIPDICL) NA NA NA NA
Foreign: NA NA NA NA
Joint Ventures (as per proportionate consolidation/ investment as per the equity method)
Ageas Federal Life Insurance Company Ltd. (Consolidated up to September 20, 2022) NA NA 0.12% 4.36
Foreign: NA NA NA NA
Total 99.75% 46,339.92 101.22% 3,751.27
Elimination 0.25% 117.81 (1.22%) (45.21)
Net Total 100.00% 46,457.73 100.00% 3,706.06

Note: None of the above subsidiaries have any subsidiary.

# Out of the four Associates, the financials for one of the Associates, viz., National Securities Depository Ltd. (26.10%), have been included in the consolidated financial results for the period up to December 31, 2022 and in respect of two Associates, viz. North Eastern Development Finance Corporation Ltd. (25.00%) and Biotech Consortium India Ltd. (27.93%), the accounts have been included in the consolidated financial results for the period up to March 31, 2022. In case of Pondicherry Industrial Promotion Development and Investment Corporation Ltd. (21.14%), the investment in the said company has been written down to ` 1. The impact of Associates on the consolidated financial results is not material.


There were no material changes and commitments affecting the financial position of the Bank, which occurred between the end of the financial year, i.e. March 31, 2023 and the date of the Directors' Report.


According to Section 143(3)(i) of the Companies Act 2013, the report of the Statutory Auditors should state whether the Bank has adequate Internal Financial Controls (IFCs) system in place and what is the operating effectiveness of such controls, in the context of the financial statements. The IFCs, as referred to in Section 143(3)(i) of the Companies Act, 2013, relate to the Internal Financial Controls Over Financial Reporting (IFCO-FR). The Bank's Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank, considering the essential components of internal control stated in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Bank's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information, as required under the Companies Act, 2013, the Banking Regulation Act, 1949 and the RBI guidelines. Your Bank has put in place an IFCO-FR Framework for evaluation of the existing internal financial controls system and appointed a Consultant for validating the compliances with respect to the documentation, certification, reporting process of the controls across all business verticals/ departments and ascertaining the adequacy and effectiveness of the controls in the Bank in all material respects with respect to financial reporting. During FY 2022-23, the Consultant has submitted the Internal Compliance Certificate for the quarters ended June 2022, September 2022, December 2022 and March 2023 after carrying out the testing and validation of all the underlying processes as per the Bank's IFCO-FR framework. During the year under review, the Consultant reviewed the compliance of 591 Risk Control Matrices (RCMs) and reported seven observations for further compliance, of which four observations have been addressed by the Bank and is complied with. The Bank is taking necessary action to ensure compliance and closure of the remaining three open observations.


Particulars 2021-22 2022-23 Comments
Return on Assets 0.84% 1.20% Net profit for FY 2022-23 was ` 3,645 crore as compared to net profit of ` 2,439 crore in FY 2021-22.
Debt Equity Ratio (excluding intangibles) 0.73% 0.50% Borrowings made in India and outside India significantly decreased by ` 1,707 crore and Net Worth improved by ` 5,726 crore.
Net NPA Ratio 1.36% 0.92% Net NPA decreased by ` 369 crore as also there was an increase in net advances by ` 25,613 crore.
Gross NPA Ratio 20.16% 6.38% The Bank's Gross NPA decreased by ` 23,146 crore.


Your Bank's ‘Total Capital + CCB' ratio was 20.44% as against the minimum regulatory requirement of 11.50% as on March 31, 2023. Similarly, your Bank's ‘Common Equity Tier 1 (CET1)

+ CCB' ratio was 18.08% as against the regulatory requirement of 8.00%. Your Bank's ‘Tier 1 + CCB' ratio stood at 18.08% as on March 31, 2023 as against the regulatory requirement of 9.50%. Your Bank's Leverage Ratio as on March 31, 2023 was 7.86% as against the minimum regulatory requirement of 3.50%.


Considering the emerging opportunities and the potential challenges, your Bank continued to pursue the broad contours of the business strategy envisaged for its turnaround. The well-designed turnaround strategy of your Bank had helped in ensuring an expeditious and broad-based improvement in its financial and operational health. The Bank's core strategy was on driving profitable business growth while ensuring strong balance sheet, fortified by healthy capital position with adequate provisioning. To cater to the growing credit demand, the Bank also took concerted efforts to augment its low-cost deposits, viz. CASA and retail term deposits, and supplemented it with growth in bulk deposits. Targeting a granular and well-diversified asset portfolio, the Bank focussed on ramping up the lending to the RAM (Retail, Agri & MSME) segment. At the same time, the Bank cautiously stepped up its lending to the corporates by selectively assisting well-rated corporates. The Bank also tapped the business synergies arising from its association with the Life Insurance Corporation of India (LIC) to drive growth in its business and improve its fee income by offering best-in-class, innovative, specialised customised products & services to the employees, agents and subsidiaries of the LIC for meeting their banking requirements. The strategic endeavours of the Bank helped it to maintain its Cost of Deposits and Cost of Funds at competitive levels. Improvement in the earning assets helped the Bank to record an improvement in the Net Interest Margin (NIM) during the year. The Bank's stringent credit appraisal and credit monitoring standards also helped in maintaining slippages at a manageable level. The Bank also stepped up its recovery and upgradation efforts through various legal and regulatory routes to resolve the stress in its delinquent asset portfolio. Complementing its business strategies, the Bank focussed on ensuring better experience for all its customers by concentrating on customer-centric initiatives. Emphasising on customer convenience and ease, the Bank focussed on enhancing accessibility for its customers by expanding its physical branch network and adding to the functionalities of its digital channels, viz. mobile and internet banking. The Bank also endeavoured to create a seamless multi-channel transactional experience for its customers as a part of its intent of ensuring customer delight. Revisiting its existing offerings and introducing new offerings, the Bank ensured that its gamut of products & services is attuned to the emerging needs and preferences of its customers. Focussing on ensuring sustained and stable business growth, the Bank has been driving a robust risk and compliance culture by encouraging all its employees to integrate best practices in their day-to-day activities. Furthermore, the Bank is committed to upholding and adhering to the highest standards in corporate governance. The Bank promotes fairness, ethics and transparency in all its dealings to maintain the trust of all its stakeholders and position itself as most trusted and preferred bank.

The strategic measures taken by the Bank, complemented by continued process and product improvements, helped it to report a broad-based improvement in its operational and financial performance in FY 2022-23.


As an organisation, your Bank places customers at the core of its business strategy and undertook a number of customer-centric business initiatives during the year. The Bank leveraged its physical touchpoints of 1,928 branches and 3,334 ATMs and 58 e-lounges as well as its digital channels to connect with its diverse customer base spread across the country. Apart from offering traditional banking products and services, your Bank has also been offering innovative banking and financial solutions to its customers. Taking into cognisance the ever-changing business landscape, the Bank has been reviewing its existing product offerings and business processes and _ne-tuning it to cater to the emerging customer requirements. Your Bank has also been offering various value-added products and services to its customers, keeping in view their risk profile and financial goals. Furthermore, the Bank has been taking proactive measures to ramp-up its digital infrastructure to cater to the pandemic-induced acceleration in the pace of digital adoption and ensure seamless, contactless, convenient, safe and secure ‘Anytime and Anywhere' banking experience for all its customers. Your Bank provides a wide range of services on a round-the-clock basis through a wide range of digital channels such as Mobile Banking, Internet Banking, WhatsApp Banking, UPI, Debit Cards, Credit Cards, Point of Sale (PoS) terminals (both physical and digital), Internet Payment Gateway, ATMs, etc. Additionally, your Bank has also been taking concerted efforts to promote usage of these digital offerings as also increasing awareness among its customers regarding safe banking practices while conducting banking transactions digitally.

Being true to its intended positioning as a retail-centric bank, your Bank has been catering to a progressively large retail customer base by offering an entire bouquet of retail-centric products such as Housing Loan (HL), Loan Against Property (LAP), Personal Loan (PL), Education Loan (EL), Auto Loan (AL), Loan Against Securities (LAS), among other products. Your Bank has put in place an Automated Loan Processing System (ALPS) to ensure faster turnaround time in loan processing. Additionally, your Bank continued to augment its customer engagement approach by extensive usage of data analytics and adoption of Customer Relationship Management (CRM) tools.

Your Bank continued to contribute significantly towards lending to the priority sectors by extending credit to Agriculture and Micro, Small & Medium Enterprises (MSME) sectors. Your Bank has also been leveraging its Business Correspondent (BC)/ Business Facilitator (BF) network to expand its reach to unserved and underserved sections of the society. Your Bank has been proactive in furthering the objective of financial inclusion by ensuring access to financial products and services needed by vulnerable sections of the society at affordable cost in a fair and transparent manner. Towards this end, the Bank, inter alia, has been extending loans under various government sponsored schemes and ensuring access to various social security schemes and initiatives of the Government of India. While the retail portfolio, viz., Retail, Agri & MSME, continued to be the business focus, the Bank has also been targeting a calibrated growth in its corporate loan book in alignment with its overall business strategy. Towards this end, your Bank has been focussing on fresh acquisition of well-rated corporate accounts to ramp up its corporate portfolio. Apart from this, your Bank also targeted growth in interest and fee-based income through focussed improvement in utilisation of sanctioned fund-based and non-fund based limits and also by cross-selling of products to deepen its existing relationship. As a prudent measure, your Bank, while growing its asset book, has also been focussing on maintaining its asset quality by closely monitoring slippages to minimise fresh slippages. Simultaneously, your Bank has also been endeavouring to upgrade or implement timely resolution for its stressed assets and NPA cases, along with augmenting its standard advances loan book.

Your Bank offers a wide range of transaction banking products and services to its corporate and retail customers at competitive pricing. Your Bank has been constantly evolving and improving its core banking platform as also offering digitised trade processing to increase customer engagements and make every step of the trade operation process seamless and convenient. Your Bank has put in place appropriate operational and compliance alerts to enable round-the-clock fraud monitoring.

Your Bank acts as an agent of the RBI in handling receipt and payment transactions of the Central Government and the State Governments. Your Bank has enabled online collection of Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance Corporation (ESIC) dues. Your Bank is also authorised to collect the Central Government taxes, to offer Small Savings Schemes, and to disburse Central Civil, Defence and Railway Pensions. Your Bank has gone live with more advanced and secured module for collection of direct taxes, i.e. Tax Information Network (TIN) 2.0.

Your Bank has integrated treasury operations in various market segments like Money Market, Fixed Income, Foreign Exchange, Derivatives and Equities. Your Bank's Treasury is supported by a pan-India sales team for effective marketing of foreign exchange, fixed income and derivative products to its corporate as well as retail clients and provide them with solutions for effectively managing exposures in currencies and also advising them with investment solution in debt instruments. In addition to these business initiatives, your Bank continued to bring about operational and process improvements to augment its overall business efficiency. Furthermore, the Bank has also been making steady progress towards technological innovation, upgradation and improvement in its IT infrastructure, both software and hardware, to support its business operations. The detailed description of the Bank's initiatives undertaken during the year is outlined in the Management Discussion and Analysis section of the Annual Report.


The COVID-19 virus, a global pandemic affected the world's economy over the last two to three years. The extent to which new wave of COVID-19 pandemic will impact the Bank's operations and asset quality will depend on on-going as well as future developments, which are uncertain at this stage. The management of the Bank is closely monitoring the developments in this regard, including the likelihood of rise in customer defaults, corresponding increase in provisioning requirements and taking necessary steps to mitigate the same.


Your Bank's Board of Directors is broad-based and its constitution is governed by the provisions of the Banking Regulation Act, 1949, the Companies Act, 2013, the Articles of Association of the Bank and the requirements of Corporate Governance, as envisaged in the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). The Board functions directly as well as through various Board-level committees constituted to provide focussed governance in the important functional areas of the Bank. As per the Articles of Association, the Board of Directors shall not be less than three and more than _fteen members consisting of a Chairman appointed by the Board, one Whole-time MD & CEO and two DMDs to be appointed by the Board, two Nominee Directors of LIC, two Nominee Directors of GoI and eight Non-rotational Independent Directors (including the Chairman and one Woman Independent Director). As on March 31, 2023, the Board comprised _fteen Directors, viz., Shri T. N. Manoharan, Independent Director and Part-Time Chairman, Shri Rakesh Sharma, MD & CEO, Shri Samuel Joseph Jebaraj & Shri Suresh Khatanhar, DMDs, as Whole Time Directors; Shri Manoj Sahay & Shri Sushil Kumar Singh, Government Nominee Directors; Shri Mukesh Kumar Gupta & Shri Raj Kumar, LIC Nominee Directors, as Non-Executive Directors; Shri Gyan Prakash Joshi, Shri Bhuwanchandra B. Joshi, Shri Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri Sanjay Gokuldas Kallapur and Smt. P. V. Bharathi as Independent Directors. The strength of 15 (_fteen) Directors on the Board as on March 31, 2023 meets the requirement provided under Article 114(a) of the Articles of Association of the Bank.


The Board has a total of thirteen committees to oversee various functional areas of your Bank's business and operations. The Board committees include Audit Committee of the Board, Executive Committee, Nomination & Remuneration Committee, Stakeholders' Relationship Committee, HR Steering Committee, Frauds Monitoring Committee, Recovery Review Committee, Risk Management Committee, Corporate Social Responsibility Committee, Non-Cooperative Borrowers' Review Committee, Customer Service Committee, Wilful Defaulters' Review Committee and Information Technology Strategy Committee.


Your Bank is committed to adopt the best Corporate Governance practices. It believes that effective Corporate Governance is not just a requirement for regulatory compliance, but also a facilitator for excellence in governance including enhancement of stakeholders' value. The details of your Bank's Corporate Governance practices are given in this Annual Report as a separate section under the Corporate Governance Report.


The Securities & Exchange Board of India (SEBI), vide its circular dated May 5, 2021, amended the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. As per the amendment, with effect from FY 2022-23, the top one thousand listed entities based on market capitalisation are mandated to submit a Business Responsibility & Sustainability Report (BRSR) in the format as specified in SEBI Circular dated May 10, 2021. The BRSR is intended towards having quantitative and standardised disclosures on ESG (Environment, Social and Governance) parameters to enable comparability across companies, sectors and time. The Bank's BRSR for FY 2022-23 has been hosted on its website (


There was one personnel in your Bank's service, during the financial year under review, who received remuneration of over ` 1.02 crore annually. Further, there were no personnel in the service of the Bank for a part of the year who received remuneration in excess of ` 8.50 lakh per month. Also, there was no personnel employed throughout the financial year or part thereof who was in receipt of remuneration at a rate, which in the aggregate, was in excess of that drawn by Managing Director & CEO or Deputy Managing Directors of the Bank and who held by himself or along with his spouse and dependent children, not less than 2.0% of the equity shares of the Bank.


Sr. No. Name Designation Annual Remuneration received (`) Nature of employment, whether contractual or otherwise Qualifications and experience of the employee Date of commencement of employment Age of such employee The last employment held by such employee before joining the company
1. Shri Rakesh Sharma Managing Director & Chief Executive Officer 16256834.41 Employee Post Graduate in Economics and CAIIB Experience in IDBI Bank: 4 years & 5 months 10-10-2018 64 Canara Bank
2. Shri Suresh Khatanar Deputy Managing Director 9355140.22 Employee M.Com, CAIIB and ICWA Experience in IDBI Bank: 25 years & 9 months 23-06-1997# 59 Dena Bank
3. Shri Samuel Joseph Jebaraj Deputy Managing Director 9245994.16 Employee B.Sc, MBA and FRM Experience in IDBI Bank: 3 years & 6 months 20-09-2019 54 Exim Bank
4. Shri Sourav Kumar Dutta Head- IT 8236770.89 Contractual BE, ME, MBA, Ph.D Experience in IDBI Bank: 1 year & 6 months 01-09-2021 55 Payback - American Express
5. Shri Arun Kumar Bansal Head-Treasury 7416015.68 Contractual B.Com, M.Com Experience in IDBI Bank: 10 months 15-06-2022 52 Indian Bank
6. Shri Ajay Sharma Advisor-Human Resource & Training 6773611.81* Contractual MBA, M.Com, I.C.W.A (Inter), CAIIB Experience in IDBI Bank: 5 months 14-11-2022 60 IDBI Bank Ltd.
7. Shri Dhiraj Saxena Head - Digital Banking & Emerging Payments 6165205.28 Contractual B.Sc, Master of Computer Application, MBA Experience in IDBI Bank: 1 year & 6 months 02-09-2021 48 L & T Financial Services
8. Shri Jorty M. Chacko Executive Director 5995711.20 Employee B.Com, M.Com, NCFM - AMFI Mutual Fund (Advisors) Module, CAIIB, NCFM - NSDL Depository Operations Module Experience in IDBI Bank: 22 years & 10months 20-05-2000 59 Federal Bank Ltd.
9. Shri Padmabhushan Bahadure Chief Technology Officer 5789338.71 Contractual Bachelor of Engineering, Management Programme , Post Graduate Diploma Experience in IDBI Bank: 3 years & 7 months 01-08-2019 46 State Bank of India
10. Shri Rajeev Kumar Executive Director 5718876.29 Employee B.Tech, MBA, CAIIB, Certificate in D-BASE & COBOL Experience in IDBI Bank: 29 years & 6 months 17-09-1993 60 State Bank of India


# Date of commencement of current designation for Shri Suresh Khatanhar as DMD in the Bank is w.e.f. January 15, 2020

* Salary includes payment made to Shri Ajay Sharma as Executive Director upto October 31, 2022 and as Advisor-HR & Training w.e.f. November 14, 2022 - Remuneration includes basic salary, allowances, perquisites as per the Income Tax rules but excludes employer's contribution to PF/ Pension, non-monetary perquisite tax and accrued retirement benefits.


The Bank has been taking several initiatives towards conservation of energy. The Bank has replaced the conventional light fixtures with energy efficient light fixtures, lamps and tubes to conserve power in various premises. The Bank is using inverter type/ Variable Refrigerant Flow (VRF) energy efficient air-conditioners (ACs) in some of the new branches/ Zonal Offices (ZOs). Depending on the requirement of the local electricity boards, your Bank has installed Automatic Power Factor Control (APFC) panel at some of its Zonal Offices and a few metro branches for energy conservation.

b) Technology Absorption

Your Bank has been proactively evaluating and absorbing the latest technology-based innovations which has the potential to empower its business functions, enrich its customer experience and optimise its readiness towards opportunities and challenges of the future.

During the year, your Bank further strengthened its IT infrastructure with the initiative of second phase of industry standard technologies that includes Software Defined Wide Area Network (SD-WAN) for additional branches, implemented new-age security technologies ((Security Orchestration, Automation & Response (SOAR), Network Behaviour Anomaly Detection (NBAD), Packet Capture (PCAP), User & Entity Behaviour Analytics (UEBA) & Threat Intelligence Platform (TIP)) for building a Next Generation Security Operations Centre (SOC) at both Data Centre (DC) & Disaster Recovery (DR) site. Further, your Bank has implemented enterprise solution for IT Operations Management and is also at an advanced stage of implementation of Integrated Collection & Recovery Module (ICnRM).

Your Bank has implemented Real Application Cluster (RAC) in the Core Banking System (CBS) to improve performance and resilience. Your Bank has upgraded the entire private cloud hardware and software to meet the increasing needs of the business for just-in-time provisioning of IT infrastructure resources. Your Bank has deployed the latest analytics solution which uses the latest storage and server hardware. Your Bank is building IT infrastructure to set up state-of-the-art Enterprise Data Warehouse for addressing various reporting requirements and for obtaining business insights. Your Bank conducts regular Disaster Recovery (DR) drills for critical IT systems that ensure seamless availability and provides the assurance of the resilience of the critical systems. On the digital front, your Bank has implemented state-of-the-art Application Programming Interface Management (APIM) solution in an approach to facilitate digital transformation, adoption with seamless integration with other applications on a need basis with minimal effort and increased go-to-market capabilities of your Bank by going live for e-Bank Guarantee application (e-BG) in partnership with National e-Governance Services Ltd (NeSL). On the data refinement and enrichment fronts, your Bank is continuously refining the process of the RBI return generation by removing manual intervention. Your Bank has converted Automated Data Flow (ADF) output into eXtensible Business Reporting Language (XBRL) format for majority of the returns out of applicable returns from the list of 32 returns released by the RBI in the first phase and is in the process of converting remaining returns. Further, the Centre of Excellence (CoE) for Data Analytics has been set up by your Bank with the objective of achieving improved customer wallet share.

Details of other initiatives undertaken in the Information Technology have been provided in the Management Discussion and Analysis section of this Annual Report.

c) Foreign Exchange Earnings and Outgo

During the year, the total foreign exchange earned by the Bank was ` 579.65 crore (excluding foreign currency cash flows in derivatives and foreign currency exchange transactions) and the total foreign exchange outgo was ` 57.58 crore towards the operating and capital expenditure requirements.


The Board of Directors, hereby, declares and confirms that:

a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent 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 of the profit and loss of the Bank for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

e. The Directors had laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively; and

f. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


Your Bank's Board of Directors is grateful to the Government of India, the Reserve Bank of India (RBI), the Securities & Exchange Board of India (SEBI), all the other statutory/ regulatory authorities and the Life Insurance Corporation of India (LIC) for their valuable co-operation and guidance. The Board also acknowledges, with gratitude, the co-operation and support received from various State Governments and other banks/ financial institutions. The Board thanks various multilateral institutions and international banks/ institutions for their support. The Board takes this opportunity to put on record its deep sense of gratitude to its loyal shareholders and customers for extending their support during the year and looks forward to their continued association in the years ahead. The Board appreciates the sincere and devoted services rendered by its entire staff and highly values their commitment and contributions towards the Bank.

[Suresh Khatanhar] [Rakesh Sharma]
Deputy Managing Director Managing Director & CEO

Place: Mumbai Date: April 29, 2023