Your Banks Board of Directors is pleased to present the Report on the Banks
business and operations for the financial year ended March 31, 2022.
The COVID-19 pandemic continued to af_ict the lives of people across the world in the
Financial Year (FY) 2021-22. Mutations of the coronavirus caused second and third
waves in India which saw exponential surge in infection rates. However, these waves had a
limited impact on the economy as compared to the first wave on account of largely
localised restrictions which allowed for a semblance of normal operations by various
sectors of the economy. Furthermore, proactive measures taken by the Government of India
(GoI) and the Reserve Bank of India (RBI) shielded the vulnerable segments of the populace
and businesses against the excesses of the economic impact of the pandemic. The policy
support helped in steering the economy towards the path of recovery as is evidenced by a
real Gross Domestic
Product (GDP) growth of 8.7% in FY 2021-22 as compared to a contraction of 6.6% in FY
2020-21. Notwithstanding the impact of the resurgent waves of the pandemic, the banking
sector continued to be resilient, aided by structural reforms taken by the Government of
India (GoI) in the recent years as well as measures announced by the policymakers in the
wake of the pandemic. Despite this, the continued uncertainty due to the pandemic and
dented consumer & business sentiments weighed down the credit growth to some extent
for a substantial part of the year. It is essential to view the financial performance of
your Bank in the backdrop of these developments for a nuanced perspective.
FINANCIAL HIGHLIGHTS
As on March 31, 2022, your Banks aggregate deposits and advances touched Rs.
2,33,134 crore and Rs. 1,45,772 crore, respectively. Your Banks business highlights
for the period under review are presented in Table 1.
Table 1: Key Financials
(Rs. in crore)
|
As on March 31, 2021 |
As on March 31, 2022 |
Capital |
10,752 |
10,752 |
Reserves & Surplus |
26,059 |
30,910 |
Deposits |
2,30,852 |
2,33,134 |
Borrowings |
15,908 |
14,345 |
Other Liabilities & Provisions |
14,193 |
12,278 |
Total Liabilities |
2,97,764 |
3,01,419 |
Cash & Balances with RBI |
13,013 |
13,593 |
Balances with Banks & Money at Call & Short Notice |
22,209 |
13,117 |
Investments |
81,023 |
82,988 |
Advances |
1,28,150 |
1,45,772 |
Fixed & Other Assets |
53,369 |
45,949 |
Total Assets |
2,97,764 |
3,01,419 |
For the period |
2020-21 |
2021-22 |
Total Income |
24,497 |
22,985 |
Total Expenses (other than provisions) |
17,462 |
15,490 |
Provisions (other than tax) |
4,666 |
3,887 |
Profit/ (Loss) Before Tax |
2,369 |
3,608 |
Provision for Tax |
1,009 |
1,169 |
Profit/ (Loss) After Tax |
1,359 |
2,439 |
During the year under review, your Banks total income amounted to Rs. 22,985
crore, comprising interest income of
Rs. 18,295 crore and other income of Rs. 4,690 crore. Interest expenses stood at Rs.
9,133 crore and operational expenses at Rs. 6,357 crore, accounting for total expenditure
(excluding provisions and contingencies) of Rs. 15,490 crore.
Total provisioning of your Bank decreased for the year due to lower provisioning
towards standard assets in the year under review which was offset by increase in
provisioning for Non-Performing Assets (NPAs) due to lower reversal of provisions in
comparison with previous year. The provisions include Rs. 3,252 crore towards provision
for NPAs, bad debts written-off and investments. The increase in Net Interest Income
(NII), other income and reduction in provisions enabled the Bank to earn a net profit of
Rs. 2,439 crore during FY 2021-22. While the Earnings per Share (EPS) during the year were
Rs. 2.27, the Book Value per Share (excluding intangible assets and Deferred Tax Asset
(DTA)) stood at Rs. 18.35 as at end-March 2022. The Board of your Bank has not recommended
any dividend for FY 2021-22.
REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES & JOINT VENTURE
INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT AS ON MARCH 31, 2022
|
Net Assets i.e. total assets minus total liabilities |
Share in profit or loss |
Name of the Entity |
As % of Consolidated Net Assets |
Amount (In Rs. crore) |
As % of Consolidated Profit or Loss |
Amount (In Rs. crore) |
Parent : IDBI Bank Ltd. |
97.57% |
41,661.98 |
96.27% |
2,439.27 |
Subsidiaries |
|
|
|
|
Indian : |
|
|
|
|
1. IDBI Capital Markets & Securities Ltd. |
0.77% |
329.51 |
0.66% |
16.75 |
2. IDBI Intech Ltd. |
0.24% |
103.90 |
0.67% |
16.95 |
3. IDBI Asset Management Ltd. |
0.29% |
121.82 |
0.33% |
8.45 |
4. IDBI MF Trustee Co. Ltd. |
0.00% |
1.69 |
0.00% |
0.08 |
5. IDBI Trusteeship Services Ltd. |
0.66% |
282.97 |
2.04% |
51.66 |
Foreign : |
NA |
NA |
NA |
NA |
Minority Interest in all Subsidiaries |
0.30% |
128.19 |
0.92% |
23.40 |
Associates (Investment as per the equity method)# |
|
|
|
|
Indian |
|
|
|
|
1. Biotech Consortium India Ltd. |
NA |
NA |
- |
- |
2. National Securities Depository Ltd. |
NA |
NA |
1.55% |
39.33 |
3. North Eastern Development Finance Corporation Ltd. |
NA |
NA |
- |
- |
4. Pondicherry Industrial Promotion Development & |
NA |
NA |
NA |
NA |
Investment Corporation Ltd. ( PIPDICL) |
|
|
|
|
Foreign : |
NA |
NA |
NA |
NA |
Joint Ventures (as per proportionate consolidation/ investment as per
the equity method) |
|
|
Indian |
|
|
|
|
1. Ageas Federal Life Insurance Company Ltd. |
0.60% |
257.24 |
0.93% |
23.58 |
Foreign |
NA |
NA |
NA |
NA |
Total |
100.44% |
42,887.30 |
101.54% |
2,572.68 |
Elimination |
-0.44% |
-187.41 |
-1.54% |
-39.01 |
Net Total |
100.00% |
42,699.89 |
100.00% |
2,533.67 |
Note: None of the above subsidiaries have any subsidiary.
# - The financials of three associates, viz. North Eastern Development Finance
Corporation Ltd. (25%), Biotech Consortium India Ltd. (27.93%) and Pondicherry Industrial
Promotion Development and Investment Corporation Ltd. (21.14%) are not considered for
consolidation on account of non-receipt of Financial Statements for FY 2021-22 and in case
of one Associate, National Securities Depository Ltd. (26.10%), the financials has been
taken up to December 2021, impact of which on Consolidated Financial Statements is not
material. In case of the Associate, Pondicherry Industrial Promotion Development and
Investment Corporation Ltd., the investment in the said company has been written down to Rs.
1.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING FINANCIAL POSITION OF IDBI BANK
WHICH HAVE OCCURRED DURING THE END OF FINANCIAL YEAR AND THE DATE OF BOARD REPORT
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, 2022 and the
date of the Directors Report.
THE DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS
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, relate to Internal Financial Controls Over Financial Reporting (IFCO-FR). The
Banks Management is responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting criteria established by
it, 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 Banks 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 guidelines issued by the RBI. 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 2021-22, the Consultant has submitted the
Internal Compliance Certificate for all the quarters of FY 2021-22 after carrying out the
testing and validation of all the underlying processes as per the Banks IFCO-FR
framework. The Consultant reviewed the compliance of all the 591 Risk Control Matrices as
on March 31, 2022 and reported four open issues for further compliance. The departments
concerned are working closely for addressing these open issues.
DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATE
PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH A DETAILED EXPLANATION
THEREOF, INCLUDING:
Particulars |
2020-21 |
2021-22 |
Comments |
Return on Assets |
0.46% |
0.84% |
Net profit for FY 2021-22 is Rs. 2,439 crore as compared to net profit of Rs.
1,359 crore in FY 2020-21 |
Return on Equity (excluding intangibles) |
10.06% |
13.60% |
Net profit for FY 2021-22 is Rs. 2,439 crore as compared to net profit of Rs.
1,359 crore in FY 2020-21. |
Debt Equity Ratio (excluding intangibles) |
1.00% |
0.73% |
Borrowings made in India and outside India have significantly decreased by Rs. 1,563
crore and improvement in net worth by Rs. 3,778 crore |
Net NPA ratio |
1.97% |
1.27% |
Net NPA has decreased by Rs. 663 crore. |
CAPITAL ADEQUACY
In adherence to the Pillar 1 guidelines of the RBI under Basel III framework, your Bank
computes regulatory capital requirement for credit, market and operational risks on a
quarterly basis. As per the Basel guidelines, banks in India are mandated to maintain the
Capital Conservation Buffer (CCB) in a phased manner commencing from March 31, 2016.
In line with RBIs notification dated February 5, 2021, your Bank has implemented
the last tranche of Capital Conservation Buffer (CCB) with effect from October 1, 2021.
Accordingly, the minimum regulatory requirement of Total Capital + CCB
was 11.50% as on March 31, 2022. Your Banks Total Capital
+ CCB ratio was 19.06% as on March 31, 2022. Similarly, your Banks
Common Equity Tier 1 (CET1) + CCB ratio was 16.68% as against the
regulatory requirement of 8.00%. Your Banks Tier 1 + CCB ratio
stood at 16.68% as on March 31, 2022 as against the regulatory requirement of 9.50%. Your
Banks Leverage Ratio as on March 31, 2022 was 7.42% against the minimum regulatory
requirement of 3.50%.
BUSINESS STRATEGY
The second wave of the pandemic in India, which peaked during the months of April 2021
and May 2021, saw lakhs of citizens in the country being affected by the coronavirus. In
order to curb the spread of the virus, various State Governments re-imposed restrictions
at localised levels, which permitted several economic activities to continue as usual,
albeit at a smaller/ contained scale, in adherence with
COVID-19 protocols. The policymakers also continued to extend targeted policy support
to the vulnerable sections of the society to minimise the economic impact of the pandemic
on the lives and livelihoods of individuals. Against this backdrop, your Bank continued to
remain committed towards its core objective of ensuring customer delight by serving its
customers with a bouquet of products and services for meeting their banking and financial
requirements. Considering the pandemic-led restriction on physical movement, various
business enablers were put in place by the Bank to extend uninterrupted and seamless
banking services to its customers, thereby enhancing its operational resilience. Equipped
with the experience gained during the initial phase of the pandemic, the Bank was able to
adopt a more targeted approach by _ne-tuning its product and services to align with the
emerging expectations and preferences of its customers and to ensure a holistic banking
experience. Thus, it is evident that the measures initiated by the Bank in the previous
financial year to navigate through an environment disrupted by the outbreak of the
pandemic gained further traction in FY 2021-22. Apart from displaying operational
flexibility, the Bank also exhibited tangible improvements in its business and financial
performance. The FY 2021-22 started on a strong footing with the Bank further
consolidating its position aided by robust fundamentals as also improvement in its
business prospects upon the removal of restrictions placed on it with the Banks exit
from the RBIs Prompt Corrective Action (PCA) framework in March 2021. The strategic
imperatives pursued by the Bank within the broad contour of the overall business strategy
paved the way for a broad-based turnaround in its performance during the year. In
consonance with its overarching agenda of positioning itself as a retail-oriented bank,
the Bank augmented the share of loans to retail and small & medium-sized enterprises
in its total asset book. At the same time, the Bank also pursued growth in the corporate
credit book, especially in the mid-size units, in a risk-calibrated manner. Towards this
end, the Bank exercised caution while augmenting the asset portfolio (both retail and
corporate) by taking into consideration the associated risk parameters. On the liability
side, your Bank continued to boost the share of its low-cost deposit base, i.e. CASA
deposits and retail term deposits to the total deposits while strategically lowering the
reliance on bulk term deposits. The strategic imperatives adopted by the Bank on
the asset and liability front aided in reduction in the key cost parameters, viz. cost of
funds and cost of deposits. In addition to this, the Bank continued to realise the full
potential of the business synergies arising from its association with the Life Insurance
Corporation of India (LIC), which aided in further improving its income. The measures to
augment its income were aptly supported by cost rationalisation measures to strengthen its
bottom-line.
Taking cognisance of the importance of asset quality in ensuring a stable and
profitable growth path, your Bank continued to emphasise on improving its asset quality
with special focus on maximising recovery and up-gradation efforts of its
delinquent asset portfolio through legal and regulatory routes in a bid to resolve the
existing stress in its asset book. Dedicated teams set up for both corporate and retail
portfolio accelerated the overall recovery process. In order to closely monitor the onset
of stress in the portfolio and also prevent further slippages in its asset quality, the
Bank also undertook proactive measures to strengthen its credit monitoring mechanism.
These measures initiated by the Bank aided in reducing incipient stress, limiting
slippages and enhancing its credit quality. Your Bank also undertook measures to further
strengthen its Risk Management and Corporate Governance framework. Furthermore, your Bank
also continued to promote a strong compliance culture by promoting and ensuring meticulous
adherence to key laws, rules, regulations, internal policies and procedures and various
codes of conduct, to maintain its reputation and win the trust of customers, investors and
regulators.
These strategic measures were supplemented by a number of structural and systemic
improvements, such as organisation restructuring, investment in technological
up-gradation, augmenting data analytics prowess, further digitalisation of both internal
as also customer-facing processes, introduction of innovative products & services,
numerous employee-friendly initiatives, etc. The cohesive measures taken by your
Bank paved the way for a holistic turnaround of the Bank in FY 2021-22.
KEY BUSINESS INITIATIVES
Customer centricity is at the core of your Banks business strategy. Your Bank,
through its physical touch-points of 1,886 branches, 3,403 ATMs and 58 e-lounges, offers a
wide range of banking products and services to cater to the emerging financial and
investment requirements of its diverse customer base. Apart from _ne-tuning its existing
bouquet of products and services, your Bank also introduced a number of innovative banking
solutions in line with the changing business landscape and evolving customer preferences.
Your Bank further leveraged the increased digital adoption by the customers by
broad-basing its digital offerings and contactless solutions. Furthermore, your Bank also
automated and digitised its processes to ensure seamless banking services and enhanced
ease of banking, thereby offering a holistic customer experience. In alignment with the
changing business landscape, your Bank proactively strengthened and revamped its digital
infrastructure and capabilities for smooth, convenient, safe and secure Anytime,
Anywhere banking experience for its customers. Your Bank also established a
forward looking approach towards cyber security to reinforce its vision of being the
preferred and trusted bank for all its stakeholders.
Your Bank continued to target a progressively larger retail business portfolio in
alignment with its overall business strategy of positioning itself as a retail-focussed
bank by offeringawiderangeofretail-centricproductssuchasHousing Loans, Loan against
Property, Personal Loans, Education Loans, Auto Loans, Loan against Securities, MSME
Loans, Agri Loans, Gold Loans, among others. In order to ensure a faster
turn-around time, your Bank processes these loans on an Automated Loan Processing System.
Furthermore, the Bank also embarked on several IT initiatives for ensuring better customer
experiences.
Your Bank continued to contribute significantly towards Priority Sector Lending (PSL)
as mandated by the RBI by focussing on lending to Micro Enterprises, Direct Agri
Non-Corporate (DANC) and Small & Marginal Farmers (SFMF). Your Bank also leveraged its
Business Correspondent (BC)/ Business Facilitator (BF) channel to expand its reach,
especially in the rural and semi-urban areas. Your Bank also entered into co-lending
agreements to ramp up its Priority Sector Lending (PSL) portfolio. Your Bank is taking
concerted efforts to further the objective of financial inclusion by ensuring convenient
access to appropriate financial products & services to the vulnerable and financially
excluded sections of the society at affordable cost in a fair and transparent manner. Your
Bank has been making extensive use of technology and promoting financial literacy to
ensure inclusive growth. Your Bank has been also extending loans under various social
security schemes and initiatives of the Government of India.
In addition to meeting the financial requirements of its Retail, Agri and MSME (RAM)
customers, your Bank endeavoured to cater to the financing needs of its corporate
clientele in a risk-calibrated manner by extending term loans, working capital loans,
packing credit and post-shipment credit to exporters, bill discounting, intra-day limits,
channel financing & vendor financing, lending to Non-Banking Financial Companies
(NBFCs) for on-lending to customers from the Priority Sector Lending (PSL) segment, etc.
Your Bank leveraged the business synergies with the Life Insurance Corporation of
India (LIC) by offering a wide array of innovative, specialised/ customised products and
services to the employees, agents and subsidiaries of the LIC for meeting their banking
and investment requirements.
Your Bank has a dedicated Trade Finance Department, which offers a wide range of
products and services to its large corporate, mid corporate and retail customers at
competitive pricing. The Bank also undertook a number of IT initiatives to make the
transactional executions error-free and faster. With a view to benefitting from the
emerging usage of Distributed Ledger Technology (DLT) in the sphere of Trade Finance, your
Bank became one of the equity holders in Indian Banks Blockchain Infrastructure Co.
Pvt. Ltd. (IBBIC), which is expected to facilitate in building processes to digitise and
automate inter-organisation trade finance operations. Your Bank instituted effective
system control mechanisms to mitigate cyber fraud risk in cross-border payments. 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 is authorised to collect Central
Government taxes, offer Small Savings Schemes, and to disburse Central Civil, Defence and
Railway Pensions. Your Bank is active in collection of State Receipts in 14 States and two
Union Territories. Your Bank also provides 24x7 internet banking facilities for tax
payments. Your Bank offers customised and comprehensive range of Cash Management Services
(CMS) for collection, payment and transaction banking solutions to suit the varied needs
of the corporates. Your Bank offers various solutions like National Automated Clearing
House (NACH), Virtual Account Facility, utility payments, direct debit facilities and
other customised e-solutions that are technologically integrated (Host-to-Host) with
client systems. Your Bank added two new digital products for corporates and with
institutions, i.e. Corporate Liquidity Management Solutions (C-LMS) and Government
Liquidity Management Solution (G-LMS) to cater to the liquidity management needs of
corporates/ institutions. Among other services, your Bank is authorised to participate in
e-freight payment system of the Indian Railways and for FASTag issuance and FASTag
Acquiring Business. Your Bank also offers CMS collection and payment services to the
LICs branch offices, divisional offices, Pension & Group Schemes (P & GS)
offices, Individual Pension Policy (IPP) offices and other offices. Your Banks
Treasury caters to the requirements of its corporate and retail clients by effectively
marketing foreign exchange, fixed income and derivative products and also providing them
with solutions to effectively manage their exposures. Your Bank also advises its clients
on their investment in debt instruments (Government Securities, Non-Statutory Liquidity
Ratio (NSLR) Bonds, etc.) through Constituents Subsidiary General Ledger (CSGL)
accounts. Your Bank has also set up a dedicated Financial Institutions Group (FIG) to
focus on domestic and foreign Financial Institutions (FIs) for offering various products/
services of the Bank. This group acts as a coverage group for offering products/ services
relating to trade, cash management services, payments, forex, derivatives, money market
and retail banking. The FIG also engages with the FIs for increasing the breadth of
coverage and deepening the FI business.
Your Bank has been increasingly using data analytics and Machine Learning (ML) to
improve its capabilities for customer acquisition and retention, to launch customised
campaigns based on the analytics-driven input; to recommend business solutions for
addressing complex business problems and issues; for assessment of credit risk and
business potential; and taking corrective action with respect to loan accounts on a
real-time basis with a focussed approach etc. Data analytics has aided the Bank in not
only augmenting its business, NPA prediction, loan recovery and churn reduction but has
also aided in number of process re-engineering. The detailed description of the
Banks initiatives undertaken during the year is outlined in the Management
Discussion and Analysis section of the Annual Report.
IMPACT OF THE COVID-19 PANDEMIC ON THE BANKS BUSINESS
During FY 2020-21, the COVID-19 pandemic resulted in nation-wide lockdown during
AprilMay 2020 period which substantially impacted the economic activity in the
country. The subsequent easing of lockdown measures led to gradual improvements in the
pace of economic activity and resulted in shift towards normalcy in the second half of FY
2020-21. In FY 2021-22, India witnessed two more waves of the pandemic and the
re-imposition of the localised/ regional lockdown measures in certain parts of the
country. At present, there has been a gradual lowering of COVID-19 cases and the countries
around the world are witnessing a gradual revival in their economies, including India. The
Bank has geared itself on all fronts to meet the challenges imposed by the pandemic. The
Banks capital and liquidity position is strong and would continue to be the focus
area for your Bank.
BOARD OF DIRECTORS
Your Banks 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 the
LIC, two Nominee Directors of GoI and eight Non-rotational Independent Directors
(including the Chairman and one Woman Independent Director).
As on March 31, 2022, the Board comprised of fourteen Directors, viz., Shri M. R.
Kumar, Non-Executive Chairman, ShriRakeshSharma,MD&CEO,ShriSamuelJosephJebaraj and
Shri Suresh Khatanhar, DMDs, as Whole Time Directors; Shri Anshuman Sharma, as Government
Nominee Director and Shri Mukesh Kumar Gupta, LIC Nominee Director, 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,
Smt. P. V. Bharathi and Shri T. N. Manoharan as Independent Directors. The strength
of 14 (fourteen) Directors on the Board as on March 31, 2022 meets the requirement
provided under Article 114(a) of the Articles of Association of the Bank.
APEX COMMITTEES
The Board has a total of thirteen committees to oversee various functional areas of
your Banks 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,RecoveryReviewCommittee,RiskManagement Committee,
Corporate Social Responsibility Committee, Non-Cooperative Borrowers Review
Committee, Customer Service Committee, Wilful Defaulters Review Committee and
Information Technology Strategy Committee.
CORPORATE GOVERNANCE
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 Banks Corporate Governance practices
are given in this Annual Report as a separate section under the Corporate Governance
Report.
BUSINESS RESPONSIBILITY REPORT
As per Regulation 34 of the Securities and Exchange Board of India (SEBI) (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the Banks Business
Responsibility (BR) Report for FY 2021-22 has been hosted on its website under the link
(https://www.idbibank.in/business-responsibility-report.asp). The BR Report describes
initiatives taken by the Bank from an environmental, social and governance perspective.
STATEMENT UNDER SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE
COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
There were no personnel in your Banks service, during the financial year under
review, who received remuneration of over Rs. 1.02 crore annually. Besides, there were no
personnel in the service of the Bank for a part of the year who received remuneration in
excess of Rs. 8.50 lakh per month. Further, there were 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% of the equity shares of the Bank.
STATEMENT UNDER RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL
PERSONNEL) RULES, 2014 FOR YEAR ENDED MARCH 31, 2022 DETAILS OF TOP TEN EMPLOYEES
Sr. No. Name |
Designation |
Annual Remuneration received (Rs.) |
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 |
MD & CEO |
8721245.16 |
Contractual |
Post Graduate in Economics and CAIIB Experience in IDBI Bank: 3 years |
10-Oct-18 |
63 years |
Canara Bank |
2 Shri Suresh Khatanhar* |
DMD |
7158124.98 |
Contractual |
M.Com, CAIIB and ICWA Experience in IDBI Bank: 24 years |
23-Jun-97 |
58 years |
Dena Bank |
3 Shri Ashok Kumar Gautam# |
Head-Treasury |
6571671.68 |
Contractual |
B.Sc, MBA and FRM Experience in IDBI Bank: 2 years |
24-Jun-19 |
59 years |
Axis Bank |
4 Shri Samuel Joseph Jebaraj |
DMD |
6494752.38 |
Contractual |
BE (Hons.) and MBA Experience in IDBI Bank: 2 years |
20-Sep-19 |
53 years |
Exim Bank |
5 Shri Nagaraj Garla |
ED |
5431515.92 |
Full Time |
B.Com, M.B.A, M.Com, I.C.W.A (Inter), Certification Programme in IT and Cyber Security
for Senior Management, CAIIB, Certificate Examination in Trade Finance and Certificate
Examination in SME Finance and CIMA Advanced Diploma in Management Accounting (UK)
Experience in IDBI Bank: 22 years |
17-Feb-00 |
52 years |
ING Vysya Bank |
6 Shri Ajoy Nath Jha |
ED |
5398230.61 |
Full Time |
M.A (Economics), M. Phil, CFA, Certified Information Security Professional, CAIIB and
FRM Experience in IDBI Bank: 27 years |
27-Dec-94 |
59 years |
Reserve Bank of India |
7 Shri Madhav Vasant Phadke^ |
ED/ Advisor |
5360444.29 |
Full Time |
B.A. LLM, MLL & LW - Diploma in Banking Experience in IDBI Bank: 30 years |
16-May-91 |
60 years |
Maharashtra State Financial Corporation |
8 Shri Anilkumar R. Jaiswara |
CGM |
5238289.88 |
Full Time |
B.Com and CAIIB Experience in IDBI Bank: 33 years |
25-Aug-88 |
56 years |
M/s. Malhotra Graphics |
9 Shri Pradip Kumar Das |
ED |
5223140.50 |
Full Time |
B.SC and MBA (Finance) Experience in IDBI Bank: 21 years |
23-Jan-01 |
60 years |
Central Bank of India |
10 Shri Ajay Sharma |
ED |
5213701.79 |
Full Time |
M.B.A, M.Com, I.C.W.A (Inter) and CAIIB Experience in IDBI Bank: 34 years |
02-Nov-87 |
59 years |
Punjab National Bank |
*- Date of commencement of current designation for Shri Suresh Khatanhar as DMD in the
Bank is w.e.f. January 15, 2020; # - Shri Ashok Kumar Gautam was in employment for part of
the FY 2021-22; ^ - Shri M. V. Phadke was in full time employment for part of FY 2021-22
and continued as an advisor thereafter;
Remuneration includes basic salary, allowances, perquisites as per the Income Tax rules
but excludes employers contribution to PF/ Pension, non-monetary perquisite tax and
accrued retirement benefits.
The above list does not include employees sent on deputation whose salary is reimbursed
by the other companies.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
a) Conservation of Energy
Your Bank took several measures for conservation of energy. For instance, the Bank
replaced conventional light fixtures with energy efficient LED light fixtures, lamps &
tubelights at the Banks Head Office building at Mumbai as well as all other office
and residential buildings of the Bank in order to conserve power. The Bank is fitting new
signages at its branches with LED lights in place of conventional power-consuming light
fixtures. For all new or refurbished branches, your Bank is using LED lights in place of
conventional lights. The Bank built water harvesting facility in the new residential
buildings constructed at the Jawaharlal Nehru Institute of Banking and Finance (JNIBF),
Hyderabad.
b) Technology Absorption
Your Bank has been proactively evaluating and absorbing the latest technology-based
innovations that have potential to empower its business functions, enrich its customer
experience and optimise its readiness towards opportunities and challenges of the future.
A few noteworthy technology-driven reforms adopted by your Bank include enhancing the
capabilities of Video KYC Account Opening (VAO) process to offer digital convenience to
the customers to open savings bank accounts and implementing the Digital Rights Management
(DRM) solution for protecting customer data shared with vendors providing various
services. Your Bank further strengthened its IT infrastructure with the industry standard
technologies that includes Software Defined Wide Area Network (SD-WAN) which is in an
advanced stage of implementation and further implementing 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 is also procuring an enterprise solution for IT
Operations Management and also initiated a process of implementation of Integrated
Collection & Recovery Module.
Your Bank upgraded the Core Banking Servers to the latest hardware, which brings about
improved performance and resilience. Your Bank 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 is now running the latest analytics
solution and has set it up using the latest storage and server hardware and building IT
infrastructure to set up state-of-the-art Application Programming Interface
Management (APIM) micro-services platform. Your Bank conducted periodic Disaster Recovery
(DR) drills for critical IT systems that ensured seamless availability even in the midst
of the COVID-19 pandemic and mitigated the risk of disruption of IT services.
On the data refinement and enrichment fronts, your Bank successfully implemented
Automated Data Flow (ADF) application and is continuously refining the process of the RBI
returns generation by eliminating manual intervention. The RBI has launched a project,
viz., Centralised Information Management System (CIMS) with the purpose of creating a
single repository for collating banks data through system-to-system approach for
regulatory submissions. Your Bank converted ADF output into eXtensible Business Reporting
Language (XBRL) format for returns released by the RBI. Further, your Bank has set up the
Centre of Excellence (COE) for Data Analytics with the objective of achieving improved
customer wallet.
Your Bank, in the Advanced Analytics ecosystem, has been using cutting-edge tools &
technologies, devising & implementing Statistical/ Predictive Models & Machine
Learning Algorithms for providing quanti_able and actionable inputs. It is utilising
diverse sources of data for Comprehensive Analysis, Customer Pro_ling, Predictive
Modelling,
Forecasting, Trend Analysis, Marketing Analysis
& Risk Analytics and recommending business solutions to address complex business
problems and issues. Details of other initiatives taken in the Information Technology
ecosphere 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 Rs. 96.53 crore
(excluding foreign currency cash flows in derivatives and foreign currency exchange
transactions) and the total foreign exchange outgo was Rs. 26.19 crore towards the
operating and capital expenditure requirements.
DIRECTORS RESPONSIBILITY STATEMENT
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.
ACKNOWLEDGEMENTS
Your Banks Board of Directors is sincerely grateful to the Government of India,
Reserve Bank of India (RBI), all other statutory/ regulatory authorities and 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 towards
the Bank.
[Suresh Khatanhar] |
[Samuel Joseph Jebaraj] |
[Rakesh Sharma] |
Deputy Managing Director |
Deputy Managing Director |
Managing Director & CEO |
Place: Mumbai |
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Date: May 02, 2022 |
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