Annual Report 2020 English

we are with you!
Annual Report 2019-20
Empowering Rural Lives
we are with you!
15 Annual Report 2019-20
With Best Compliments from

K. Praveen Kumar
Chairman
Andhra Pradesh Grameena Vikas Bank
Head Office, Warangal - 506 001
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Inside the Report

S.No. Particulars Page No.
1. Letter of Transmittal 03
2. Geographical Presence & Regional Offices 04
3. Board of Directors 05
4. Executives Team 06
5. Head of Departments & Regional Managers 07
6. Our Mentors, Regulators / Supervisors 08
7. Highlights 2019-20 09
8. Chairman's Message 10
9. Key Performance Indicators 12
10. Board of Directors Report 17
11. Auditor's Report 59
12. Balance Sheet, Profit & Loss 65

Account and Schedules
Vision we are with you!
Be the preferred Bank of Rural India for development and

transformation.
Mission
Be a financial heart, providing Sustainable livelihood to rural
population through Innovative Financial and Technology solutions.
Values
Respect to Systems and Procedures / Good Governance / Transparency /
Service with compassion / Ethics / Team work and People Focus.
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Letter of Transmittal

Head Office : Warangal
Date : 30.06.2020
The Secretary,
Ministry of Finance, Dept. of Financial Services
Banking Division, Government of India
Jeevan Deep Buildings, Parliament Street,
New Delhi-110001
Dear Sir,
In accordance with the provisions of Section 20 of the Regional Rural Banks Act 1976,
I forward herewith the following documents.
A Report of Board of Directors as to the Bank's working and its activities during the period
1st April 2019 to 31st March 2020
A copy of the Audited Balance Sheet and Profit and Loss Account for the year ended
31st March 2020.
A copy of the Auditor's report in relation to the Bank's accounts for the period 1st April 2019 to
31st March 2020.
Yours faithfully,
(K. Praveen Kumar)

Chairman
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24% Branch
(Semi Urban)
Classification
12%
(Urban) 64%
(Rural)
Geographical presence & Regional Offices
Regions in Andhra Pradesh

Srikakulam Warangal
Saraswathi Complex, Baker sahed peta ABK Mall,
Srikakulam 532001, Ramnagar, Hanamkonda
rmsrikakulam@apgvbank.in Warangal 506001
Tel 0870-2577884
Vizianagaram rmwarangal@apgvbank.in
8-12-64/1, Beside Himagiri Theatre,
Vizianagaram 535002, Mahabubnagar
rmvizianagaram@apgvbank.in H.No: 10-4-16/4/2, 4th Floor, Yenugonda
Mahabubnagar - 509 002, Telangana
Visakhapatnam rmmahabubnagar@apgvbank.in
52-14-77/1, APHSC Building,
Near Eenadu office, Seethammadhara Sangareddy
Visakhapatnam H.No.5-1-28/4, 2nd Floor, By Pass Road,
rmvisakhapatnam@apgvbank.in Prashanthnagar, Rajampet, Sangareddy. Dist:
State: Telangana - 502001.
Parvathipuram rmsangareddy@apgvbank.in
Vizianagaram Dist. 1435-27-112, Ist Floor,
By Pass Road, Opp. Sai Ram College Ashoknagar
rmparvathipuram@apgvbank.in Shekar Arcade, Opp. Beeramguda Kaman,
RC Puram Mandal Dist. Sangareddy 502032
rmashoknagar@apgvbank.in
Regions in Telangana State
Bhadrachalam (Kothagudem)
Khammam D-No: 3-2-199, IInd Floor, Vidyanagar Colony
Wyra Road, Khammam 507001 Chunchupally, Bhadradri Kothagudem (Dist)- 507107
Tel 08742-295992 rmbhadrachalam@apgvbank.in
rmkhammam@apgvbank.in
Nalgonda
Ramgiri, Nalgonda 508001
Tel 08682-229950
rmnalgonda@apgvbank.in
Head Office :
D. No. : 2-5-8/1, Near Ambedkar Statue, Ramnagar, Hanamkonda - 506 001 Warangal [Telangana]
Ph: 0870-2577769 I Tollfree: 1800-121-0354 I email : headoffice@apgvbank.in I www.apgvbank.in
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BOARD OF DIRECTORS
Shri K. Praveen Kumar

Chairman
(General Manager on deputation
from State Bank of India)
Nominees of Central Government under

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

Section 9 (1) (b) of the Regional Rural Bank's Act 1976
Shri Y. Rambabu Asst. General Manager,
HRMD, Reserve Bank of India, Hyderabad
Nominee of NABARD under
section 9 (1) (c) of the Regional Rural Bank's Act, 1976.
Shri Sukanta K Sahoo, Deputy General Manager
NABARD, TSRO, Hyderabad
Nominees of State Bank of India

under Section 9 (1) (d) of the Regional Rural Bank's Act, 1976
Shri S. Ganesan
General Manager (RRBs), State Bank of India,
Corporate Centre, Mumbai
Shri Bhuvanendra Takoor
Deputy General Manager (ABU), State Bank of India,
LHO, Amaravati
Nominees of State Government under

Section 9 (1) (e) of Regional Rural Bank's Act, 1976
Shri KVV Satyanarayana, IRAS

Shri Rayi Ravi Special Secretary to Govt. (B&IF)
Additional Secretary Finance Department, GOAP, Amaravathi.
Finance Department
Govt. of Telangana
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Executive Team
Shri K. Praveen Kumar

Chairman
Shri G.Sukumar Shri Ch.Sree Rama Somayaji Shri G. Nagaraju

General Manager-I General Manager - II General Manager - III
Shri P.Pardhasaradhi Shri N.V. Ramana Shri K.E Subrahmanyamu

General Manager -IV General Manager - V General Manager - VI
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Head of Departments
Shri M.B.T. Reddy Shri T.V.V. Prabhakar Shri S. Laxman Shri K. Vinod Reddy
AGM (FIC) AGM (A&I) AGM (Credit & RRM) AGM (Per & HRD)
Shri A.S. Sarma Shri G. Sreedhar Reddy Shri K. Amarender Reddy Shri N.V. Srinivas Rao
Chief Manager (P&D) Chief Manager (IT) Chief Manager (SLC) Chief Manager (Accounts)
Regional Managers
Shri Mallempati Ravi Shri S.L.N. Prasad Shri B.R.V. Manoj Kumar Shri D. Vishwa Prasad Shri P. Raju Shri D. V. Gurunatha Rao
AGM&RM, Sangareddy AGM & RM, Nalgonda AGM&RM, Mahabubnagar AGM&RM, Ashoknagar AGM & RM, Warangal AGM & RM, Srikakulam
Shri B. Prakash Shri M. Manohar Reddy Shri B. Srinivasa Murthy Shri Riyaz Mohammad Shri I. Srikanth
AGM & RM, Vizianagaram AGM & RM, Vishakapatnam RM, Khammam RM, Parvathipuram RM, Bhadrachalam
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Our Mentors
Shri Rajnish Kumar

Chairman
State Bank of India
Corporate Centre, Mumbai
Shri Dinesh Khara Shri SP Singh

Managing Director Chief General Manager (A &S),
State Bank of India State Bank of India
Corporate Centre, Mumbai Corporate Centre, Mumbai
Our Regulators / Supervisors
Shri Vijay Kumar Shri S. Selvaraj

Chief General Manager, Chief General Manager,
NABARD, TSRO, Hyderabad NABARD, APRO, Hyderabad
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Highlights 2019-20
v Deposits increased to Rs.18495.69 crore from the previous year's level of Rs.16055.97 crore with a
growth rate of 15.20%. (Rs. 2439.72 Crore)
v Advances at Rs.19322.97 crore increased by Rs 2664.56 Crore @ 16.00% from Rs.16658.41 crore.
v Operating Profit increased by 26.60% to Rs 1213.02 Crores from Rs 958.17 Crores.
v Gross NPA as % to total Advances has come down to 1.03%(Rs.198.50 Crore) from 1.14%.
v Bank has achieved Net NPA of Zero compared to previous year's Rs.55.62 crore.
v Cost to Income Ratio (Expenses Ratio) decreased from 28.19 % to 25.26%.
v Non-interest Income had increased by 42.36% to Rs.409.93 crore from Rs.287.95 crore.
v Yield on Advances improved to 11.55% from 11.35%.
v Net Interest Margin improved to 4.73% from 4.36%.
v Net Interest Income up by 15.92% to Rs.1213.04 Crore from Rs.1046.44 Crore.
v Business per Branch increased to 48.79 Crore from 42.21 Crore
v Business per employee increased to 11.44 Crore from 10.28 Crore.
v Net Profit per Branch increased to 79.69 Lakh from 14.46 Lakh.
v Net Profit per Employee increased to 18.69 Lakh from 3.52 Lakh.
v Reserves increased by 27% to Rs.2905 Crore from Rs.2287 Crore.
v Housing Loan portfolio increased by Rs.754.44 Crore @ 39.88% to Rs.2646.31 Crore from Rs.1891.87
Crore
v Gold Loan portfolio doubled to reach Rs.953.62 Crore from Rs.485.27 Crore.
v Bank has opened 7 more Asset Management Hubs during the FY taking total hubs to 26.
v Bank has shifted its Staff Learning Centre, IT Cell& Sangareddy Regional Office to Banks own, newly
constructed & spacious premises in Sangareddy
Total Business 16.15%

37819 Crore Capital adequacy Ratio
15.60%
11.55%
Net Profit Yield on Advances
617.58 Crore
451.25%
100%
Provision Coverage Ratio
Net Worth
104.47%
2999.03 Crore
25.97% Credit - Deposit Ratio
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Chairman’s Message
K. Praveen Kumar
Chairman
It gives me great pleasure to place before you the Housing Loans and our ability to garner high value
highlights of Bank's performance during the financial customers in a consistent manner. In addition, we paid
year 2019-20. relentless attention to our operating discipline by
The financial year ending March 31, 2020 was a very strengthening Branch visit mechanism.
good year for APGVB. The trust of our Customers and the Profitability
dedication of our employees helped us achieve
phenomenal results. FY 2019-2020 has brought about significant
improvement on asset quality front, provision coverage,
In the FY 2019-2020, Bank's total business grew by NIM and yield on advances. The profit of the Bank could
15.60% to Rs. 37818.66 Crore from the previous year's have been much higher but for the pension provisions
level of Rs. 32714.37 Crore. The deposits grew by made as per the Government of India guidelines.
15.20%, to Rs. 18495.69 Crore from the previous year's
level of Rs. 16055.97 Crore & gross advances of Bank The net interest income of the Bank stood at Rs. 1213.04
recorded a growth rate of 16.00% & grew to Crore registering a healthy growth of 15.90%.The
Rs. 19322.97 Crore from the previous year's level of Operating profit of the Bank grew by 26.60% to
Rs. 16658.41 Crore The growth in credit was mostly Rs. 1213.00 Crore from the previous year's level of
driven by Housing loan portfolio & the portfolio grew by Rs. 958.17 Crore. The bank made a net profit of Rs.
39.87% to Rs. 2646.31 Crore from previous year's level of 617.58 crore compared to Rs. 112.04 Crore recorded in
Rs. 1891.87 Crore. We ended the year with a net worth the previous year.
of Rs. 2999.03 Crore & at the end of year we had over Concerted efforts towards recovery in stressed assets
3300 employees. and strict monitoring led to fall in Gross NPA ratio of the
The primary contributors to this stellar year were our Bank to 1.03% in March 2020 from 1.14% in the
continued focus on diversifying business – especially previous year, Bank has made remarkable decision to
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earmark 100 % Provision Coverage Ratio compared to conducted during FY 2019- 20 by the Bank Financial
previous year's 70.59% , which resulted in Net NPA Literacy Centres.
becoming 0%.
During the last few weeks in March we started to see the
Investments portfolio reduced by Rs. 1553.45 Crore impact of COVID-19, during which our team worked
during FY 2019-20. Bank has to disinvest to with incredible dedication towards the service of the
accommodate the funding of pension provision (Fully customers. Our focus has been and remains the safety of
provided).Further, Investment to deposit ratio reduced our employees, the delivery of service to our customers
to 20.76% from 33.58%. and the financial well-being of the Bank. Immediately,
Technology initiatives Bank had taken preventive measures to safeguard the
interest of Staff & advised all staff members to attend
Information Technology has been the backbone of the
duty on alternate day basis.
Bank supporting seamless operations, customer
outreach, better products and services and business A strong Balance Sheet, with a net worth Rs. 2999.03
growth. The Bank has witnessed enormous amount of Crore and Capital Adequacy position of the Bank which
technology transforming the Bank, keeping pace with improved from 15.50% in March last year to 16.15% in
the rest of the industry and enabling the Bank to achieve March 2020, puts us in an excellent position.
the business volumes that it has today. Way Forward
With over 12.46 Lakh Active Debit cards, Bank is pioneer As government is proposing phased unlock of all
in catering to the people in remote villages. activities &critical vaccine solutions are in advanced
APGVB Bank Mobile Banking app, one of the top rated stages, we will be closely monitoring the impact of
mobile Banking App across all RRBs has achieved more pandemic and will be increasing our Business
than 5 Lakh Downloads & over 3.2 lakh Registered users accordingly. Efforts will also be directed to achieve a
as on March 31, 2020. This reflects the growing more sustainable mix of business.
customer confidence in our products. We remain extremely focussed on the needs of our
Bank has installed around 90 SWAYAMs (Barcode based customers and even more ready to extend our support
Passbook Printing Kiosks) in urban pockets for the to the customers as we continue to emerge from this
convenience of customers. unprecedented situation.
Bank has also launched multiple In-House IT portals like I want to especially thank our team for demonstrating
RFIA Audit Portal, Snap Audit Portal , Staff Annual incredible ability to execute throughout the last
Appraisal portal , MIS Portal , Suit file dashboard to name financial year and for their stellar performance and
a few during the FY 2019-20 for easy & effective dedication under a difficult situation in the past few
monitoring of data. months. Looking ahead, I am optimistic of the
opportunities of the work we are doing for our
Customer satisfaction
customers and the approach we have put up in place.
With a view to increase customer convenience, the Bank
has created few touch points. The Bank has more than
2028 operating Bank Mitras and 775 Branches. Bank is
Yours sincerely,
among the leading RRBs in extending social security
initiatives like APY, PMJJBY, PMSBY and other schemes to
its valued customers as envisaged by Government. More (K. Praveen Kumar)
than 1600 Financial Literacy awareness camps were Chairman
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Key Performance Indicators Rs. in 000's

Indicators 2017-18 2018-19 2019-20
A KEY PERFORMANCE INDICATORS
1 No. of Districts covered 22 22 24
2 No. of branches 768 775 775
a) Rural 494 499 499
b) Semi urban 181 183 183
c) Urban 52 52 52
d) Metropolitan 41 41 41
Ultra-Small Branches 488 488 488
3 Total Staff (excluding Sponsor Bank Staff) 3160 3181 3305
of which, Officers 1925 1976 2085
4 Deposits 143336293 160559557 184956906
Growth % 11.82 12.02 15.20
5 Borrowings outstanding 80412059 64710050 84658752
6 Gross Loans & Advances outstanding 143166957 166584100 193229653
Growth % 15.75 16.36 16.00
of 6 above, loans to Priority Sector 131227119 149713863 173765307
of 6 above, loans to Non Target Groups 11939837 13469285 19464346
of 6 above, loans to SC/ST 32116955 36109816 38517022
of 6 above, loans to SF/MF/AL 87126238 100301277 109918623
of 6 above, loans to Minorities 8420724 9921516 11569468
7 CD Ratio 99.88 103.75 104.47
8 Investments Outstanding 114273690 98796639 119700729
SLR Investments Outstanding 57638582 53170560 37538535
Non-SLR Investment Outstanding 56635188 45626079 82162194
B AVERAGE
9 Average Deposits 133477904 144685619 168335004
Growth % 15.55 8.40 16.35
10 Average Borrowings 57646511 77150828 66145232
Growth % 26.81 33.83 -14.27
11 Average Gross Loans And Advances 129871031 152339085 170747803
Growth 18.00 17.30 12.08
12 Average Investments 74664481 87720536 85556869
Growth % 26.87 17.49 -2.47
Average SLR investments 48841624 54429941 44876389
as % to average deposits 58.35 37.61 26.66
Average Non-SLR Investments 25822857 33290595 40680480
as % to Average deposits -7.80 28.92 24.17
13 Average working funds 223950016 255718080 278936559
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Rs. in 000's
Indicators 2017-18 2018-19 2019-20
C LOANS ISSUED DURING THE YEAR
14 Loans issued during the year 106919716 102508485 118025557
Growth % 7.34 -4.12 15.13
of 14 above, loans to Priority Sector 92757898 84016632 98782426
of 14 above, loans to Non-target Groups 14161818 18491853 19243131
of 14 above, SC/ST 21244947 27904191 31560519
D PRODUCTIVITY
15 Per Branch 373051 422666 487984
Per Staff 90666 102843 114429
E RECOVERY PERFORMANCE
16 TOTAL
Demand 115545127 96136986 108645648
Recovery 100949732 84997743 96615493
Over dues 14595395 11139243 12030155
Recovery % 87.37 88.41 88.92
(June position)
17 FARM SECTOR
Demand 49736937 40870154 39648964
Recovery 46449980 36544683 30878654
Over dues 3286957 4325471 8770310
Recovery % 93.39 89.42 77.88
(June position)
18 NON-FARM SECTOR
Demand 65808190 55266832 68996683
Recovery 54499751 48453060 65736838
Over dues 11308439 6813772 3259844
Recovery % 82.82 87.67 95.27
(June position)
F ASSETS CLASSIFICATION
19 (a) Standard 141210532 164693106 191245777
(b) Sub-Standard 262674 495393 813893
(c) Doubtful 1520235 1216164 1162106
(d) Loss 173516 179437 8956
Total 143166957 166584100 193230732
Standard Assets as % to Gross Loans &
Advances out standings 98.63 98.86 98.97
G PROFITABILITY ANALYSIS
20 Interest paid on
a) Deposits 8414939 8512819 10074433
b) Borrowings 3372854 4716476 3830292
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Rs. in 000's
Indicators 2017-18 2018-19 2019-20
21 Salary 2170109 2353771 2668873

22 Other Operating Expenses 1008736 1408528 1430633
23 Provisions made during the year
(a) Against NPA's 594063 -314366 1027390
(b) Other Provisions 178863 8390073 2168809
(c) Amortization 0 0 0
24 Interest received on
(a) Loans & Advances 14850970 17287981 19729785
(b) Investments 5418718 6405778 6305348
(c) Others -
25 Other Income 2974895 2879522 4099300
26 Loss / Profit 5030146 1120383 6175731
H Other information
27 Share Capital Deposit Received Nil Nil Nil
28 DI & CGC - - Nil
(a) Claims settled cumulative - - Nil
(b) Claims received but pending adjustment - - Nil
(c) Claims pending with Corporation - - Nil
29 Cumulative Provision
(a) Against NPAs 1676144 1984957
(b) Against Standard Assets 406021 595992
(c) Against Intangible Assets Frauds etc. 231331 616 Nil
30 Interest Derecognized
(a) During the year Nil - Nil
(b) Cumulative Nil - Nil
31 Loans Written off during the year
(a) No. of Accounts 7448 47 5489
(b) Amount 122662 5541 367300
32 Accumulated loss Nil Nil Nil
33 Reserves 21618439 22867634 29049482
Net NPAs 404383 556161 0
% Provisions to gross NPAs 79.31 70.57 100
% Gross NPAs to advances 1.37 1.14 1.03
% Net NPAs advances 0.29 0.34 0
CRAR (%) 15.59 15.50 16.15
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Total Business (Rs in Crore) Deposits (Rs in Crore)
37819
18496
15.60% 15.20%
32714
16056
Growth Rate 28650 Growth Rate
14334
25187
12819
20804
10202
17346
8280
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
Advances (Rs in Crore) Net Profit (Rs in Crore)

19323
16.00% 451.25%
618
16658
Growth Rate Growth Rate

14317
503
12369
352
10602
223
9066
202
112
Per Employees Business (Rs in Crore) Per Branch Business (Rs in Crore)
11.27% 15.60%
48.79
11.44
42.21
10.28
Growth Rate Growth Rate

36.30
9.07
32.80
8.45
27.70
7.05
23.83
6.10
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Awards received during 2019-20
APY Challenger’s Cup APY Leadership Capital Out performers Makers of Excellence 3.0
Project Finance by Bank

During the year, Bank has taken up project financing for Construction of House flats, Independent Houses to Builders
in a big way under its CRE-RH Loan scheme and financed such projects in surroundings of Hyderabad, Warangal,
Kothagudem, Vishakapatanam etc.
Project Loan of Rs. 5 Crore sanctioned by our Bollaram (V) Branch through RASMECCC, Ashoknagar to
M/s Sri Himaghna Constructions, Hyderabad for construction of House Flats.
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Board of Directors Report

2019-20
Lighting up the lives of rural people
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Director's Report
Net Interest Income (Rs. in Crore)
We have pleasure in presenting the 15th Annual Report of
1213.04
Andhra Pradesh Grameena Vikas Bank (APGVB) together with
the Audited Statement of Accounts, Auditors' Report and the
1046.44
report on business and operations of the Bank for the financial
year ended on 31st March 2020.
FINANCIAL PERFORMANCE
848.19
Business Review
The Bank's total business has registered a growth of

Rs. 5104.26 Crore at 15.60% to reach Rs. 37818.66 Crore as on
31stMarch 2020 as against Rs. 32714.40 Crore as on 31st March
2019. FY 2018 FY 2019 FY 2020
During the period the deposits grew by 15.20% to Rs. 18495.69
Crore from the previous year's level of Rs. 16055.97 Crore & Interest Income and Expenditure
loan portfolio increased by 16.00% & grew to Rs. 19322.97 Interest income increased from Rs. 2369.38 Crore in FY2019
Crore from the previous year's level of Rs. 16658.41 Crore. to Rs. 2603.51 Crore in FY 2020 registering a growth of 9.88%.
The growth in credit was mostly driven by Housing loan The interest income is contributed mainly by increase in
portfolio & the portfolio grew by 39.87% to Rs. 2646.31 Crore interest income on loans and advances, which increased from
from previous year's level of Rs. 1891.87 Crore. Rs. 1728.80 Crore to Rs. 1972.98 Crore registering a growth of
Rs. 244.18 Crore (@14.12%).During this year interest income
received from investments was Rs. 630.53 Crore.
Total Business at a glance (Rs. in Crore)
The interest expenditure increased from Rs. 1322.93 Crore in
37819
FY 2019 to Rs. 1390.47 Crore in FY 2020. The Interest

32714
expended on deposits increased by 18.34% from Rs. 851.29

28650
25187
Crore in FY 2019 to Rs. 1007.44 Crore in FY2020. Bank has paid

20804
Rs. 383.03 Crore towards interest on Borrowings (refinance

17346
from NABARD, NHB and MUDRA and Intrest paid on SBI /

14687
12459
HDFC OD accounts) during the year compared to Rs. 471.65

Crore paid during FY 2019 with a decrease of Rs. 88.62 Crore.
Total Interest Income (Rs. in Crore)

Interest Income on Investment
13 -1
4 15 16 -1
7 18 19 20 Interest income on advances
2- 4- 5- 7- 8- 9-
2603.51
1 3 1 1 6 1 1 1
20 01 20 20 01 20 20 20
Total Interest Income
2369.38
2 2
2026.97
1972.98
Net Interest Income

1728.8
1485.1
Net interest income increased by 15.92% from Rs. 1046.44

Crore in FY 2019 to Rs. 1213.04 Crore in FY2020. Total interest
640.58
630.53
541.87
income increased from Rs. 2369.38 Crore in FY2019 to

Rs. 2603.51 Crore in FY2020 registering a growth of 9.88%.
Total interest expenses increased from Rs. 1322.93 Crore in
FY2019 to Rs. 1390.47 Crore in FY2020.
2017-18 2018-19 2019-20
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Interest Expenditure Operating Expenditure
Interest Expenditure Operating expenditure has increased by Rs. 33.72 Crore

Interest Paid on Borrowings
(8.96%) to Rs. 409.95 Crore in FY 2020 from Rs. 376.23 Crore
Interest Paid on deposits in previous FY 2019. The marginal increase in operating
Interest Expenditure expenditure is due to increase in Employee costs from
1390.47
Rs. 266.19 Crore to Rs. 272.26 Crore.
1322.94
1178.78
1007.44
Net Profit
851.29
841.49
471.65
383.03
The Net profit of Bank was at Rs. 617.57 Crore for the FY 2020
337.29
as compared to Rs. 112.04 Crore in FY 2019. Banks net profit

increased substantially by 451.25% as Bank had to make
lesser provision of Rs. 206.32 Crore towards Pension liability
2017-18 2018-19 2019-20
compared to Rs. 837 crore made in the previous fiscal.
647%
Non-Interest Income and Expenses
YoY Growth in
Non-interest income increased by 42.36% to Rs. 409.93 Crore Non Profit
in FY2020 as against Rs. 287.95 Crore in FY2019. During the 618
year, Bank's Non-interest expenditure increased marginally Net Profit at a glance (Rs.in Crore)
503
by 8.96% to Rs. 409.95 Crore compared to Rs. 376.23 Crore
incurred in the FY 2019.
352
42.36% 202 223

159 180
YoY Growth in 120 112
Non-Interest Income
Income and Expenditure
2 3 4 5 6 7 8 9 0
-1 -1 3-1 -1 -1 -1 7-1 -1 -2
Particulars 2018-19 2019-20 Growth % 1 2
01
4 5 6 8 9
201 201 2 201 2 01 2 01 201 201 201
Interest Income 2369.38 2603.51 9.88%
Profit Analysis
Interest Expenditure 1322.93 1390.47 5.11%
Non-Interest Income increased from Rs. 287.95 Crore in FY
Non-Interest Income 287.95 409.93 42.36%
2019 to Rs. 409.93 Crore in FY 2020 registering a healthy YoY
Non-Interest Expenditure 376.23 409.95 8.96% growth of 42.36%. The growth in Net Interest Income (NII) is
mainly due to increase in PSLC (Priority Sector Lending
Gross Profit/
Certificate) income from Rs. 31.85 Crore to Rs. 112.13 Crore.
Operating profit 958.17 1213.02 26.60%
Interest income also increased from Rs. 2369.38 Crore in FY
Taxes 45 276.93 515.40% 2019 to Rs. 2603.51 Crore in FY 2020 recording a growth rate
Deferred Tax Asset & 6.44 1.10 -82.92% of 9.88%. Bank’s operating profit (Before Provisions and
Earlier year adjustments Contingencies) increased from Rs. 958.17 Crore recorded in
(excess) FY 2019 to Rs. 1213.02 Crore in FY 2020 registering growth of
26.60%. Despite earmarking Rs. 319.62 Crore for provisions &
Provisions and
contingencies including provisions to cushion against future
Contingencies 807.57 319.62 -60.42%
slippages bank has registered very good profit this year.
Prior Period depreciation 0 0
The other factors that impacted the Net Profit figure are:
& rent
a) A sum of Rs. 3.96 crore was recovered from written
Net Profit 112.04 617.57 451.20% off/AUCA accounts.
b) Booked a Profit of Rs. 40.67 crore from Treasury operations
compared to Rs. 14.50 crore in the previous fiscal.
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(Rs. in Crore)
c) Share of Gross NPAs as a % of Total Advances reduced S. 2018- 2019- %
Ratios Change
from 1.14% in FY 2019 to 1.03% in FY 2020. No. 19(%) 20(%)
d) Growth in Business also contributed to increase in 8 % of Non Interest
interest spread and in turn increase of profit of the Bank. Income (Other Income)
to Working Funds 1.13 1.473 0.09%
e) Bank has earmarked 100% provisions for non-performing
assets. 9 Operating Profit
(Before provisions) to
f) Increase in income on PSLC from Rs. 31.85 Crore per FY
Working Funds 3.75 4.35 16.00
2019 to Rs. 112.13 Crore in FY 2020.
10 Return on Assets(Net
Provisions for NPAs profit as % to working
Bank has made a Provision of 198.5 Crore for non-performing Funds) 0.44 2.21 402.27
assets in FY 2020 as against Rs. 133.48 Crore in Fy2019. Bank 11 Return on Equity 4.71 20.59 337.15
has accounted for 100% provision coverage ratio this year. The 12 Total Business Per
Bank has written back a provision of Rs. 36.73 Crore on NPAs Employee (Rs.in 000's) 102843 114429 11.27
during the year. 13 Total Business Per Branch
Due to COVID-19, Bank has followed a graded approach as per (Rs.in 000's) 422121 487984 15.60
RBI guidelines in making provisions for stressed assets and 14 Average Business Per
accordingly 5% provision was made during March 2020 Employee (Rs.in 000's) 93375 102597 9.88
quarter amounting to Rs. 98,82,037 Rupees only. 15 Net Profit Per Employee
(Rs.in 000's) 352 1869 430.85
100% 16 Net Profit Per Branch
Provision Coverage Ratio (Rs.in 000's) 1446 7969 451.09
FY 2020 (Rs in Crore) 17 Provision Coverage Ratio 70.59 100 41.66
2018-19 2019-20 18 Average Return of Funds
Assets (Financial Return) 9.32 9.48 1.72
Provi Provi
O/s O/s 19 Average Cost of Funds
sion sion
(Financial Cost) 5.17 4.98 -3.68
Standard 16469.31 49.03 1912.47 59.60
20 Financial Margin (18-19) 4.15 4.50 8.43
Sub Standard 49.54 7.6 81.39 81.39 21 Cost of Management
Bad & (Transaction Cost) 1.47 1.47 0.00
Doubtful 121.62 107.94 116.21 116.21 22 Miscellaneous Income 1.07 1.47 37.38
Loss 17.94 17.94 0.90 0.90 23 Risk Cost 0.08 0.41 412.50
24 Net Margin (18+22)(-19+21+23) 3.67 4.09 11.44
Total 16658.41 182.51 19322.97 258.1
25 Net Interest Income 10464465 12130408 15.92
Ratio Analysis 26 Net Interest Margin (NIM) 4.36 4.73 8.49
S. 2018- 2019- % 27 Gross Rate of Return(GRR) 0.38 1.82 378.95
Ratios
No. 19(%) 20(%) Change 28 Other Income Ratio
1 Cost of Deposits 5.88 5.98 1.70 (Non Interest Income)
as a % to Total Income 10.84 13.60 25.46
2 Cost of Borrowings 6.11 5.79 -5.24
29 Growth In Business 14.18 15.60 10.01
3 Yield on Advances 11.35 11.55 1.76
30 Investment to Deposit
4 Yield on Investments 7.47 7.85 5.09
Ratio 51.01 54.50 6.84
5 Expenses Ratio
31 Borrowings to Advances
(Cost to Income Ratio) 28.19 25.26 -10.39
Ratio 38.85 43.81 12.77
6 CD Ratio 103.75 104.47 0.69
32 CASA Deposits to Total
7 Interest Income as % Deposits 41.46 39.77 -4.08
to Working Funds 9.27 9.33 0.65
33 Cash to Deposits Ratio 0.93 0.56 -39.78
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Balance sheet size Capital Adequacy Ratio

The Balance Sheet of the Bank stood at Rs. 31276.20 Crore as
16.15 %
on 31st March, 2020 compared to Rs. 26637.44 Crore on 31st
15.50 %
March , 2019 recording a growth of Rs. 4638.76 Crore
Capital and Reserves
Authorized Capital:
Pursuant to The Regional Rural Banks (Amendment Act)
2015,Raised the Authorized Capital of the Bank from 5,00,000 FY 2019 FY 2020
Equity Shares of Rs. 100/- each aggregating to Rs. 5 Crore to The following table gives the position of Tier-I, Tier-II
200,00,00,000 Equity Shares of Rs. 10/- each aggregating to Capital, Reserves and computation of CAR. (Rs in Crore)
Rs. 2000 Crore.
Capital 2018-19 2019-20
Paid up Capital:
1 Tier-I
The Bank's paid up capital stood at Rs. 94,08,50,000 a. Paid up Capital 94.08 94.08
(9,40,85,000 shares of Rs. 10 each), subscribed by b. Share Capital Deposit 0 0
Government of India, State Government and State Bank of c. Statutory Reserves &
India in the ratio of 50:15:35. Surplus 455.49 579.00
Reserves d. Capital Reserves 0.01 11.10
The Reserves increased by 27% (Rs. 618 Crore) to Rs. 2905 e. Other Reserves 14.31 14.31
Crore in FY 2020 as against Rs. 2287 Crore recorded in previous f. Spl. Reserve u/s 36(1)(Viii)
year. of Income Tax Act 1961 14.47 39.01
g. Surplus in P&L 1786.5 2245.53
Reserves (Rs in Crore) Total reserves (b+c+d+e+
2905 f+g) 2270.78 2888.96
2287 Total Tier-I Capital 2364.9 2983.04
2162
1656
2 Tier-II
1304 a. Undisclosed Reserves
1080 b. Revaluation Reserves
879
698
539 c. General Provisions &
Reserves 49.09 59.65
d. Investment fluctuations
12 -1
3 4 5
-1
6 7 -1
8
-1
9
-2
0
11- 2 3-1 4 -1 5 6-1 7 8 9 Reserves / Fund 15.99 15.99
20 201 201 2 01 201 201 201 201 2 01
Total Tier-II Capital 65.08 75.64
Grand Total (Tier I + Tier II) 2429.9 3058.68
3. a. Adjusted value of funded
Net worth
risk assets i.e., balance
Net worth of the Bank stood at Rs. 2999 Crore with a growth of sheet items 15653.69 18902.77
Rs. 618 Crore (26 %) over previous FY's figure of Rs. 2381 b. Adjusted value of non-
Crore. funded risk assets i.e.,
The Capital Adequacy Ratio of the Bank is at 16.15 % as on balance sheet items 21.47 39.52
March 2020 up 65 bps YoY (15.5% as on March 2019) which is c. a+b 15675.2 18942.29
well above the level of minimum 9% stipulated for RRB’S by Dr. d. Percentage of Capital
K.C. Chakravarthi Committee. (Tier-I + Tier II) to Risk
Weighted Assets 15.5 16.15
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Deposits Borrowings
The deposits grew by 15.20% (Rs. 2439.72 Crore) to The aggregate borrowings of the Bank as on 31st March 2020
Rs. 18495.69 Crore from the previous year's level of stood at Rs. 8466 crore whereas it was Rs. 6471 Crore as on
Rs. 16055.95 Crore. 31st March 2019.
(Rs. in Crore)
(Rs. in Crore) S.No Institution 2018-19 2019-20 Variance
Deposits
Total Deposits Term Deposits Total CASA
1 NABARD 6376.08 7066.31 690.23
18495.69 2 SBI & HDFC 2.13 1346.42 1344.29
2019-20 11139.92 3 NHB 72.80 53.14 -19.66
7355.768
4 MUDRA 20.00 0 -20.00
16055.95 Total 6471.01 8465.87 1994.86
2018-19 9399.84
6656.11 The Bank has availed refinance against Crop loan
disbursements from NABARD @ 20%. Refinance against SHG
14333.63 disbursements and Rural Housing was provided by NABARD
2017-18 8291.69
6041.94 and NHB respectively @ 100%.
TREASURY OPERATIONS
Deposit Mix The Treasury Department at Head Office performs the
CASA deposits grew by Rs. 699.66 Crore at 10.51 % to reach Treasury Operations of the Bank. It is responsible for
Rs. 7355.77 Crore as against Rs. 6656.11 Crore as on deployment of surplus funds available in the markets to
31.3.2019. achieve desired risk-adjusted returns. The treasury dept is
Time deposits of Bank has grown from Rs. 9399.84 Crore as of responsible for managing the funds position of the Bank and
March 2019 to Rs. 11139.92 Crore as of March, 2020, ensuring safety, liquidity and optimal yield on these funds. It
registering a growth of Rs. 1740.08 Crore (18.51%). maintains Statutory Reserve Requirements and invests in
corporate bonds, commercial papers, equity, mutual funds,
CASA Deposits accounted for 39.77% of total deposits
(Rs. in Crore) etc. as a part of the fund management operations.
Deposit mix 2018-19 2019-20 Investments
Current A/c 186.14 159.84 In the year under review SLR investments decreased from
Growth 64.34 26.30 Rs. 5317.06 Crore to Rs. 3753.85 Crore. However, total
Growth % age 52.82 -14.13 investments increased from Rs. 9879.67 Crore to Rs. 11970.07
Crore registering a growth rate of 21.07%.
Savings Bank A/c 6469.97 7195.93
(Rs. in Crore)
Growth 549.83 725.96
Investments 2018-19 (Rs. in Crores)
2019-20
Growth %age 9.29 11.22
SLR 5317.06 3753.85
Total CASA 6656.11 7355.77
Growth -446.80 -1563.21
Growth 614.17 699.66
Growth % age -7.75 29.40
Growth %age 10.17 10.51 Non SLR 4562.61 8216.22
CASA Ratio 41.46 39.77 Growth -1100.90 3646.17
Term Deposits 9399.84 11139.92 Growth % age -19.44 79.78
Growth 1108.15 1740.08 Total Investments 9879.67 11970.07
Growth %age 13.36 15.62 Growth -1547.70 2082.96
Total deposits 16055.95 18495.69 Growth % age -13.54 21.07
Growth 1722.41 2439.73
Though average investments decreased, income on
Growth % Age 12.02 15.20
investments increased.
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Investment Policy: instance of income leakage from Non-SLR investments

The Investment Policy of the Bank was formulated in 2006 and portfolio.
the same was reviewed / revised and approved by the Board CRR and SLR
from time to time, conforming to the RBI guidelines. The Bank has complied with the regulatory requirement of
SLR Investments maintenance of adequate balances towards CRR and SLR.
In terms of Section 24 of the BR Act 1949, the Bank has There is a well laid down system of assessing the CRR and SLR
maintained investments in the avenues laid down in the Policy, requirements taking into account the NDTL. There was no
to fulfil the SLR requirements. All SLR investments are made default in maintenance of adequate balances during the year.
in GOI / State Govt Securities only. The purchase and sale of The Bank has kept Rs. 530.75 Crore in CRR and Rs. 3868.93
Govt Securities are undertaken by the Portfolio Management Crore in SLR as on 31.03.2020.
Services Department of State Bank of India.
Non SLR Investments
Non-SLR investments are invested in TDRs of Banks. The Bank
has been monitoring and following up for prompt receipt of
interest due from Govt Securities /Bonds. There was no
Inauguration of Indrakannu Branch New Premises in Sangareddy Region Inauguration of New premises of Regional Office of Mahaboobnagar by
by Chairman Sri. K. Praveen Kumar Chairman Sri. K. Praveen Kumar
Inauguration of New premises of our Tellapur Branch in Ashoknagar Region by Chairman Sri. K. Praveen Kumar, followed by customer meet
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Inauguration of New premises of our Narsipatnam Branch in Farmers Felicitation Program – Best farmers have been Felicitated by
Visakhapatnam Region By Chairman Shri K. Praveen Kumar General Manager Shri Ch. Sree Rama Somayaji in Mahabubnagar on
26th January 2020
total advances. NPAs share in Home loan portfolio is just
0.21% (Rs. 5.74 Crore) which signifies the quality of Home
loan finance. As we move forward, our focus remains on
improving the share of Home loans to total advances.
Gold Loans
In addition to increase in Home loan portfolio, Banks
coordinated efforts to improve share of Gold loans in total
advances portfolio yielded positive results. Bank has
launched 2 new Gold loan schemes during the course of the
year viz., Multipurpose Agri Gold loan & Privilege personal
Gold loans which helped Bank in doubling the Gold loan
business during the period under review compared to
Staff Interaction Program held at Srikakulam by previous year.
Chairman Shri K. Praveen Kumar Gold loan business levels have increased from Rs. 485.27
CORE OPERATIONS crore in FY 2019 to Rs. 953.62 Crore in FY 2020 registering a
Credit Portfolio growth rate of 96.50%.
Retail Lending - Home Loans The Comparative performance under retail lending during last
During FY 2020, Bank's focus continued on increasing the 2 years is tabulated below:
(Rupees in Crore)
share of retail lending to Housing sector, Education Loans, O/s Mar 2018-19 O/s Mar 2019-20
Personal Gold Loans & MSME. Home loans outstanding has S.
Segments No.of No.of
been increased from Rs. 1891.87 Crore in FY 2019 to No Amt Amt
A/cs A/cs
Rs. 2646.31 Crore in FY 2020 recording a healthy growth of 1 Housing Loans 14741 1891.87 18386 2646.31
40%.Bank has taken up capacity building of the operating staff
to make them better acquainted with retail lending and to 2 Mortgage Loans 3579 223.01 3623 227.47
diversify the credit portfolio. Suitable staff was posted in all 3 Education Loans 1936 60.62 1600 54.11
Asset Management Hubs to give more fillip to retail business
4 Demand Loans 15783 216.50 13674 222.62
especially to Home loan business.
Bank is an active member in financing under Government's 5 NFS - Term Loan
flagship scheme, Pradhan Mantri Awas Yojana (PMAY) and /MSME 116010 1357.48 126215 1515.39
has claimed subsidy from NHB (Nodal Bank) for more than 6 Personal Loans 8412 251.39 7273 241.74
2140 loan accounts amounting to Rs. 49 Crore (Approx.)
7 Personal Gold
during the year. Bank is having more than 18,000 Housing loan
Loans 95040 485.27 144660 953.62
customers and accounts, and adding many more every day.
The Home loan business now constitutes 13.69% of Banks Total 255501 4486.14 315431 5861.26
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Asset Management Hubs and Rasmecccs The Asset Management Hub processes Housing loans,
In order to centralise sanction of laons and to improve quality General Purpose Asset Backed Loans, CRE-RH Loans, MSME
of loan processing, Bank has opened 7 more Asset loans& Agriculture Loans (backed by collateral security)
Management Hubs at Patancheruvu, Dabagardens, Kodada, sourced from spoke branches as well as directly received from
Bhongiri, Ranasthalam, Chodavaram & Kashibugga during the customers.
FY2020 in addition to existing 19 Hubs & 2 RASMECC, taking During FY 2019-2020, AMHs/RASMECC have collectively
total number of Hubs to 28. sanctioned 44,201 loans aggregating to an amount of
With the objective to further strengthening the functioning of Rs. 4389.37 Crore compared to 2835 loan account with an
AMHs/RASMECC, controlling structure has been changed. In amount of Rs. 485.04 sanctioned during FY 2018-2019
addition to this, in order to give more impetus to quality &
focussed SHG lending, Bank has vested discretionary powers
for sanction of SHG loans of above 5 lakhs to Hubs/RASMECC
withdrawing sanctioning powers from Branches.
Inauguration of Asset Management HUB at our Daba gardens branch

in Visakhapatnam Region on 20.08.2019. By Chairman
Shri. K. Praveen Kumar Housing Loans Financed by RASMECC Ahoknagar
Function hall financed by our Miryalaguda Branch, Nalgonda, Rice mill financed by our Maddur Branch, Sangareddy, Regional Office
Regional Office
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Hotel financed by our Siddipet Branch , Sangareddy, Regional Office Car servicing unit financed by our Kodad X Road Branch, Khammam,
Regional Office
Total credit to agriculture and allied activities constitutes

63.86% of the total credit portfolio as on 31.3.2020 vis-à-vis
61.62% as at the end of previous FY 2018-19.
Crop loans under revised Kisan Credit Card System
As per the directions of Government of India and NABARD,
we have implemented revised Kisan Credit Card System for
crop loan borrowers from Kharif 2012. According to the
guidelines of revised KCC, we have introduced a new product
KCC-cum-SB account in the CBS for a period of 5 years. As per
this system, the farmers can remit their surplus funds in their
KCC account and can draw according to their requirement and
they need not maintain separate Savings Bank account. There
is a provision for giving interest as applicable for Savings Bank
account for the credit balances in the KCC account. Further,
loan limits will be fixed for 5 years and documents will be
obtained for the terminal limit. Year-wise limits will be fixed
House Apartments financed by our Siddipet Branch, Sangareddy, Regional Office basing on present Scales of Finance and keeping in view the
KCC, SHG & Other Loans future cost of investment.
Credit to Agriculture We have issued 968858 KCCs as on March, 2020 with an

outstanding credit of Rs. 7854.48 Crore as against previous FY
Total credit to agriculture and allied activities including
level of 920115 KCCs for Rs. 6759.51 Crore.
agriculture-portion of SHG lending, stood at Rs. 13154.83
Crore as on 31.3.2020 as against Rs. 11259.36 Crore recorded During the year 2019-20, we have disbursed an amount of
during the previous year with a growth of Rs. 1895.47 Crore Rs. 4081.17 Crore to 782267 KCC card holders as against
(@ 16.83%). Total number of Bank's borrowers in Agriculture Rs. 3302.53 Crore to 590262 card holders during the year
sector has increased from 1102918 to 1193382 in FY 2020. 2018-19. Instructions were issued to all the branches to cover
More than 75 % of the credit to SHG finance is also towards all KCC holders up to the age of 70 under Personal Accident
agricultural operations. Insurance Scheme(PAIS) during the three year card holding
period, with risk coverage of Rs. 50,000/- The annual
The Bank has disbursed Rs. 7536.95 crore to agriculture during
premium of Rs. 20/- was jointly borne by the Bank Rs. 13/- and
the year as against the previous year's disbursal of Rs. 6316.74
the borrower Rs. 7/-
Crore registering a healthy growth of Rs. 1220.21 Crore.
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Crop Loans - VaddileniRunalu / PavalaVaddi

Government of united Andhra Pradesh had implemented
“Vaddileni Runalu/ Pavalavaddi” scheme i.e., reimbursement
of interest subvention and incentive subvention for prompt
payers of crop loan borrowers from Rabi 2011-12. Under the
VLR Scheme, farmers need not to pay the interest portion. The
scheme has been in existence and continued by both the
States of Telangana and Andhra Pradesh
Interest Subvention
As per Government of India guidelines, Bank is implementing
7% interest rate to all the crop loan borrowers up to Rs. 3.00
lakhs and accordingly claimed an amount of Rs. 57,09,68,809/-
towards 2% interest subvention from the GOI during the year SHG Bank Linkage Program at Narsipatnam, Visakhapatnam, cheque for
2019-20. As per the directives of Government of India, we had Rs. 10 crore handed over to SHG Women by Narsipatnam MLA Shri Uma
passed on the benefit relating to interest subvention incentive Shankar Ganesh and Chairman Shri K. Praveen Kumar.
to the extent of Rs. 31,11,41,470/- to the prompt repayers and
claim submitted accordingly.
Conducting of GramaSabhas
All branches have conducted GramaSabhas for the customers,
mainly for the purpose of educating the farmers in timely
renewal of the crop loans to avail the benefit of interest
subvention from Government of India. To ensure maximum
renewals/recovery, GramaSabhas were conducted in the
evenings and mornings and sensitized farmers to renew their
crop loans. Apart from operating staff at Branches, Customer service Meet at Srikakulam, attended by Shri J.Nivas, Collector,
Srikakulam and Shri. K.Praveen Kumar, Chairman
functionaries from ROs, Head Office right from Messenger to
Chairman have participated in the GramaSabhas, which Self Help Groups
yielded very good results in successful renewal of crop loan Our Bank has crossed one more milestone of 2,00,000 SHG
accounts and recovery of NPA's. groups during the FY 2019-20 and one of the leading Bank
Tenant Farmers – Loan Eligibility Card Holders under SHG Finance, we have financed to 204569 Self Help
Groups (covering about 24.04 lakh rural women) with an
We have financed to 4474 tenant farmers under the Loan
outstanding portfolio of Rs. 6402.39 Crore as on 31.3.2020 as
Eligibility Cards Scheme with a credit outstanding of Rs. 11.99
against previous year's level of 194871 Groups with
Crore during the year 2019-20. AP Land Licensed Cultivators
outstanding credit of Rs. 5857.85 Crore. The total loans
Ordinance aims at ensuring loan and other benefits to tenant
outstanding under SHG segment has increased by Rs. 544.54
farmers, by means of Loan Eligibility Cards.
Crore at a growth rate of 9.29% during the year 2019-20
Joint Liability Groups (JLGs) against previous year growth of Rs. 273.83 Crore (@ 4.90%).
In order to develop effective credit products for small / The Bank has disbursed Rs. 4011.07crore to 172084 Groups
marginal / tenant farmers, oral lessees and share croppers, as during the year.
also entrepreneurs engaged in various non-farm activities, the
The Bank has highest number of Self Help Groups linked to
scheme for Joint Liability Groups was launched by NABARD.
Bank and loan amount outstanding, among all RRBs in the
During the year 1266 groups were financed amounting country.
Rs. 10.41 Crore and outstanding JLGs finance now stands at
In order to further strengthen our SHG base and to improve
5558 amounting to Rs. 64.18 Crore as on March 31, 2020.
income levels of SHG members Bank has launched a new
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product “Elite SHG” during the FY 2020, which encourages NRLM set out with an agenda to cover 7 crore rural poor
prompt paying groups to go for a higher limit of upto 10 lakh households, across 600 districts, 6000 blocks, 2.5 lakh Gram
(collateral free) from the existing 7.5 lakh limit. This new Panchayat and 6 lakh villages in the country through self-
product has the potential to have a substantial impact on the managed Self Help Groups (SHGs) and federated institutions
rural economy. and support them for livelihoods collectives in a period of 8-
10 years.
In addition, the poor would be facilitated to achieve increased
access to rights, entitlements and public services, diversified
risk and better social indicators of empowerment. DAY-NRLM
believes in harnessing the innate capabilities of the poor and
complements them with capacities (information, knowledge,
skills, tools, finance and collectivization) to participate in the
growing economy of the country.
NULM aim at providing shelters equipped with essential
services to the urban homeless in a phased manner. In
SHG Loan disbursement of Rs 55.44 Crore for 200 SHGs at Customer
Outreach programme in Srikakulam addition, the mission would also address livelihood concerns
of the urban street vendors by facilitating access to suitable
spaces, institutional credit, social security and skills to the
urban street vendors for accessing emerging market
opportunities.
In November 2015, the program was renamed as Deendayal
Antayodaya Yojana (DAY).
Under the NRLM Scheme, all Women SHGs promoted by
N R L M or other Central or State Government Line
Departments or NABARD or any NGOs, which are linked with
our Bank, are eligible to avail the benefits of the Scheme. As
per the Scheme, GOI identified 250 backward districts all over
the country under Category-I, of which we have six districts in
o u r n o t i f i e d a re a n a m e l y Wa ra n ga l , K h a m m a m ,
Mahabubnagar (erstwhile districts in Telangana state) and
Srikakulam, Vizianagaram, Visakhapatnam in Andhra
Pradesh.
All such Women SHGs in the six districts have been extended
credit at 7% rate of interest upto Rs.3 lakhs and Government
will reimburse to the extent of difference between 7% and
actual rate of interest (12.50%) subject to a maximum of
5.50%.
Our Bank has participated in the Deccan Haat 2020 organised by Apart from this, prompt paying SHGs will be provided an
NABARD, TSRO, Hyderabad. Shri S. K. Joshi Chief Secretary Govt. of additional 3% subvention amount as incentive. SERP (Society
Telangana Visting Corporate stall of our Bank
for Elimination of Rural Poverty) would credit the remaining
NRLM/NULM / DEENDAYAL ANTYODAYA YOJANA (DAY) 4% interest for prompt repayer sreducing 'ZERO” interest
Interest Subvention Scheme burden to the groups. We have claimed an interest
Our Bank has been implementing NRLM Scheme as per the subvention @5.50% to the tune of Rs. 134,89,48,744/- and
guidelines issued by NABARD vide their letter No 249/MCID- 3% prompt repayment incentive Rs. 62,99,34,913/- during
LS/2013-14 dated 26.11.2013. the year 2019-20.
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We have two districts among the Category-II districts (other farmers against the security of fungible farm produce stored
than the above 250 districts) under NRLM namely Nalgonda at accredited/ non-accredited ware houses aimed at enabling
and Medak in Telangana State. Funding for this subvention the farmers to avoid post-harvest distress sale.
will be provided by the SRLM (State Rural Livelihood
Mission).SRLM and SERP will provide each 7% interest as
subvention for prompt repayers through e-transfer to the
SHGs accounts under the Scheme for Category-II districts.
Agriculture investment credit
Bank has an Agriculture investment credit portfolio of
Rs. 690.63 Crore as on 31st March 2020 (282.20 Crore as on
31st March 2019). "The objective of doubling farm income by
2022 can be achieved by providing an incentive to agri. term
loans for investment purpose through an enabling mechanism
of either interest subvention or a credit guarantee fund," SBI
said in its research report Eco wrap.
To support the Governments efforts in doubling farmers'
income, Bank has launched few Agriculture investment
Bank loan products banner being viewed by general public in
products during the course of year aimed at increasing the Khammam SP Stadium
income levels of farmers and rural households.
Priority Sector Lending
a) Dairy Vikas Loan (Tie Up): With an objective to scale up
regular income of farmers Bank has launched new loan In terms of RBI Circular No: FIDD.CO.Plan.2/04.09.01/2016-
product “Dairy Vikas Loan scheme” by making tie up 17 dated 07.07.2016, w.e.f 01.01.2016 75 percent of
arrangements with Milk procuring companies such as outstanding advances should be towards Priority Sector,
Vijaya Dairy, NSR Dairy, Heritage foods etc. In the process which constitutes loans extended to (a) Agriculture (Farm
the income of farmers will be doubled and they can also credit , Agriculture infrastructure, Ancillary activities ) (b)
increase the cattle strength in future once they establish Micro, Small and Medium Enterprises (Manufacturing and
good repayment track record with bank. Service Sector, KVI and OD to PMJDY) (c) Education (d)
Housing (e) Social Infrastructure (f) Renewable Energy (g)
Bank has financed to more than 800 dairy farmers and
disbursed an amount to the tune of Rs. 6 Crore under this Weaker Sections and (h) Others (SHG/JLG, distressed
scheme during the FY 2020. persons, Loans to State Sponsored Organizations for
Scheduled Castes/ Scheduled Tribes).
b) ATL Vikas Green(Tie-up): Bank has launched this new
product ATL Vikas Green under tie-up arrangement with RRBs will have a target of 75 per cent of their outstanding
Kheyti, an organisation helping farmers for construction advances for priority sector lending and sub-sector targets as
of Green House. indicated in table below.
Kheyti was started in 2015 with the mission of giving Categories Targets
small farmers a steady and dependable income through Total Priority Sector 75% of total outstanding
market driven technology solutions. After seeing first- Agriculture 18% of total outstanding
hand the huge production risk that small farmers are
Small and Marginal Farmers 8% of total outstanding
exposed to, they have conceptualised the “Greenhouse-
Micro Enterprises 7.5% of total outstanding
in-a-Box”, an affordable modular greenhouse bundled
with services. Weaker Sections 15% of total outstanding
Bank has disbursed more than 2 crore under this scheme. The Bank's priority sector lending constitutes 89.93% of total
In addition to this products Bank has also launched APGVB advances. In absolute terms, total priority sector lending
Crop encash loan product – to provide short term loan to stood at Rs. 17376.53 Crore as on 31.03.2020 as against
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Rs. 14971.39 Crore as on 31.03.2019. There is a growth of actively during the year and as on 31.3.2020, the total finance
Rs. 2405.14 Crore @ 16.06%. Lending to weaker sections extended under various Schemes and loan out standings in
constitutes 66.60%. In absolute terms weaker sections loans various schemes are as under.
stood at Rs. 12869.16 Crore as against previous FY's level of Grounding Position of Government Sponsored Schemes
Rs. 12109.51 Crore with an increase 6.27% (Rs. 759.65 Crore). as on 31.03.2020 vis-a-vis achivement (Rs. in Lakhs)
(Rupees in Crore) Target Achievement

2018-19 2019-20
Scheme No. of Amt. No. of
S.
No.of No.of Units Units Amt.
No
A/cs O/s A/cs O/s
SCAP 7150 8155 6251 7135.26
1 Weaker Sections 1091638 12109.51 1179281 12869.16
BCAP 4660 3590 4179 3157.61
2 Women borrowers 509624 6610.10 612272 7659.82
STAP 1975 861 1624 697.10
3 Minorities 87142 992.15 98152 1186.95
4 SCs/STs 306290 3610.98 315425 3815.67 Minorities 1086 678 979 620.40
Weavers 825 400 642 292.20
Inter Bank Participation Certificates (IBPC)
Pasukranthi/PPK 0 0 0 0.00
In accordance with the RBI guidelines, the bank has entered
MEPMA 500 1255 306 496.17
into Risk sharing participation Contract with HDFC LTD under
Inter Bank Participation Certificate (IBPC) and issued priority PHC 640 475 483 349.03
sector advances to the extent of Rs. 590.00 Crore on Others 2850 3000 2496 2216.64
28.06.2019 for a period of 180 days as cash pay-out and
Total 19686 18414 16960 14964.41
maturity period expired on 24.12.2019. During this financial
year the Bank issued priority sector advances to the extent of Outstanding position of Government Sponsored Schemes
Rs. 1100.00 Crore on 24.09.2019 for the period of 180 days as as on 31.03.2020.
(Rs in Lakhs)
cash pay-out and maturity period expired on 21.03.2020 and
Outstanding Disbursement from
Rs. 590.00 Crore on 26.12.2019 for the period of 180 days as as on 31.3.2020 01.04.19 to 31.03.2020
cash pay-out and maturity period expired on 23.06.2020. Scheme
No. of Amt. No. of Amt.
Further, again during the year the bank issued priority sector Units Units
advances to the extent of Rs. 1300.00 Crore on 24.03.2020 for SGSY 1281 1364.83 0 0
the period of 180 days as cash pay-out and matures on RYS 636 1492.37 0 0
20.09.2020.
SCAP 34213 10698.91 6251 7135.26
Priority Sector Lending Certificates (PSLC)
BCAP 28066 8130.82 4179 3157.61
As per RBI master circular No. FIDD.CO. Plan. BC 23/04.09.01
STAP 29787 6393.02 1624 697.10
/2015-16 dated 07.04.2016 of PSLC, trading on e-Kuber portal
Minorities 5660 5487.21 979 620.40
is an on-going process. All traded PSLCs will expire by March
31st and will not be valid beyond the reporting date (March Weavers 2379 1815.61 642 292.20
31st), irrespective of the date it was first sold. VAMBAY/
According to the SBI instructions on trading in "Priority Sector INDIRAMMA 1326 771.31 0 0
Lending Certificates" through CBS e-Kuber portal, we have KVIC 16 78.17 0 0
started trading on e Kuber portal for the financial 2019-20 Pasukranthi/PPK 5439 4359.65 0 0
from 14.06.2019. Our Bank has earned substantial profit of
PMEGP 216 124.76 0 0
Rs. 112.13 Crore in FY 2020 compared to Rs. 31.85 Crore
earned during previous year. MEPMA 1680 503.23 306 496.17
PHC 903 506.32 483 349.03
Government Sponsored Schemes
Others 280 268.31 2496 2216.64
The Bank has participated in Govt Sponsored Schemes
Total 111882 41994.52 16960 14964.41
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Participation in State Credit Plans Credit flow to Micro and small enterprises under Credit
The Bank's participation in State Credit Plans is as under: Guarantee Fund Trust for Micro & Small Enterprises
(Rs in Crore)
(CGTMSE)
2018-19 2019-20
S. In line with the objectives of the Government, Bank has
No Target Achiev Target Achiev
ement ement focussed on financing to Micro and small enterprises and
1 Crop Loans 4965.35 3602.53 5000 4081.17 Bank has an outstanding portfolio of Rs. 118 Crore under
2 Total Agr & allied CGTMSE as on 31st March,2020.
activities 675.77 359.83 700 748.17 (Rs. in Lakhs)
3 NFS 1351.81 853.65 600 986.74 Cumulative 2018-19 2019-20
4 OPS 5267.55 4607.95 4500 4062.16 No of A/Cs 876 15561
5 Tot Priority Sector 12260.48 9423.96 10800 9878.24
Amount 957.58 11799.14
Achievement % 76.86% 91.46%
Credit Information Companies
CSIS Scheme (Education Loans)
Our Bank is a member of Trans Union CIBIL (Credit
CSIS (Central Sector Interest Subsidy scheme) is a unique
Information Bureau (India) Limited) Equifax Credit
scheme which pivots around the vision that no student
Information Services Private Limited, Experian Credit
desiring to pursue higher education is denied of the
Information Company of India Private Limited and CRIF High
opportunity if he / she is financially poor. This scheme benefits
Mark Credit Information Services Private Limited.
all categories of economically weaker students for pursuing
Our Bank has been uploading the data regularly and all our
professional / technical courses in India only, and intends to
Regional Offices and Branches are accessing the credit history
provide affordable higher education. The Scheme, envisages
of the loan applicants while making credit decisions.
uplifting the students from the grass-root level and increasing
the number of qualified technicians / professionals in the Asset Quality – Management of Non-Performing Assets
nation. CSIS aims to check the existing geographical The Non-Performing Assets have marginally increased by
imbalance with regard to Gross Enrolment Ratio (GER) in Rs. 9.40 Crore from Rs. 189.10 Crore as on 31st March 2019 to
Higher Educational Institutions. Rs. 198.50 Crore as on 31st March 2020. Gross NPAs as a
The scheme is applicable to students belonging to percentage to total advances has come down from 1.14% as
Economically Weaker Sections, i.e. students whose annual on 31.3.2019 to 1.03 % as on 31.3.2020. Net NPAs (as a %age
gross parental income is up to Rs. 4.5 lakhs. Subsidy is to Net advances) has come down from 0.34% to Nil. During
admissible only once either for undergraduate or post
graduate or integrated course.
Our bank has been claiming Interest subsidy under this
scheme for all the eligible students since 2009-10 on the CSIS
portal of Canara Bank (Nodal Bank) every year. All the claims
upto 2017-18 for all years have been settled to our bank.
For the FY 2018-19, we have claimed an amount of
Rs. 65,23,633.00/- in respect of 282 education loan accounts.
Further more we also received abroad education loan subsidy
amounting to Rs. 31,55,904.00/- for 2018-19.
Bank is also a registered entity under CERSAI – Central
Registry of Securitisation Asset Reconstruction and Security
Interest of India. Regional Manager & SM Advances Khammam participated in SHG NPA
recovery drive of Pedaveedu Branch. On 15th Nov 2019. Involving SERP /
IKP staff, neighbouring branch staff in the drive.
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the financial year Bank has made 100% provisions for all the Bank Adalat
NPA accounts and accordingly Net NPA was made Nil from We have introduced Bank Adalat scheme in line with
Rs. 55.62 Crore. The NPAs have come down in all segments Lokadalat for quick disposal of overdue cases at Regional
except KCC and recalled debts. Office level. Dates of conducting of Bank Adalat will be
The movement in NPAs during last two years is as under: advised by Head Office.
(Rs. in Crore)
During the Year 2019-20 we have settled 2530 cases for an
Particulars 31stMarch 2020 31stMarch 2019
amount of Rs. 688.08 lakhs.
Gross NPA 198.49 189.10
Gross NPA (%) 1.03 1.14 Compromise settlements
Net NPA 0 55.62 Bank has recovered following amounts under compromise
Net NPA (%) 0 0.34 settlement scheme:
Addition to NPAs 426.90 293.46 (Rs.in lakhs)
Recovery/ Upgradations 417.50 300 Compromise 2018-19 2019-20

Write Offs 36.73 0.55 No of A/Cs 2099 972
Recovery in Written off A/cs 3.96 6.44 Amount 1259.37 971.99
Provision Coverage Ratio (%) 100 70.59
SARFAESI Act and Suit filing As per asset classification, the classification of loans book is
as given below:
Notices under SARFAESI Act were issued immediately after
(Rs. in Crore)
the account becoming NPA. This was monitored by Head
2018-19 2019-20
Office at monthly intervals. Our actions in this regard have Asset
O/s % O/s %
yielded good results. We have taken demonstrative actions
Standard 16469.31 98.86 19124.47 98.97
particularly under SARFAESI. One desk officer each has been
Sub Standard 49.54 0.30 81.39 0.42
posted to all Regions exclusively for the purpose of monitoring
Bad & Doubtful 121.62 0.73 116.21 0.60
NPAs who will be responsible for initiating action under
Loss 7.94 0.11 0.90 0
SARFAESI, Suit Filed, vehicle seizure etc., and also closure of
Total NPAs 189.10 1.14 198.50 1.03
suit filed cases, AUCA recovery etc. Focus was given for
Total Advances 16658.41 100 19322.97 100
recovery of Recalled debts/ Suit filed accounts. Meetings with
Advocates were conducted in regions for expediting disposal
of suits. Provision Coverage Ratio
Performance under SARFAESI is as under: (Rs.in lakhs)

100.00 %
Particular A/cs Amt

85.67 %
Demand Notices 302 3050.71

70.59 %
Possession Notices issued 167 1628.48

Possession taken 25 358.68
Auctioned 6 194.55
Regularized 148 1478.62 FY 2018 FY 2019 FY 2020
Performance under Suit-filed cases is as under: (Rs. in lakhs) The following strategies were adopted to reduce / contain the
Particulars Cases Amt NPAs:
Suit filed 1746 3877.22 1. The Recovery & Risk Management department has been
Decreed 970 1851.27 continuously drawing various strategies for reduction of
EP Filed 337 942.24 NPAs and guiding the branches/Regional Offices under
Recovery after Filling suits 155 279.61 the guidance of top Management.
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2. All General Managers are regularly visiting the branches Internal Control System – Inspection & Audit (I&A)
in their allotted regions and reviewing the NPA position The I&A Department, headed by a General Manager, works
and guiding for resolution. under the guidance and supervision of the Audit Committee
of the Board & all activities of the Bank are subjected to
3. More than Rs. 20.00 lakhs outstanding NPA accounts are
internal audit function, which comprises of different types of
being monitored by Chairman personally. audits namely (a) Risk Focused Internal Audit (RFIA) (b) Snap
4. Top 50 Loan accounts position is being placed before Audit (c) Concurrent Audit and (d) Income Audit (e) Special
Board in its every meeting and suggestions / Audit (f) Compliance Audit (g) IS Audit.
recommendations made by Board are being implemented. Keeping pace with rapid digitisation, department is also
actively contemplating to introduce new technological
5. As NPAs under SHG have registered increase, we have
initiatives for providing enhanced efficiency and effectiveness
advised the branches to ensure renewal of accounts in audit process.
where the limits were expired on war footing basis and Risk Focused Internal Audit (RFIA)
recover the instalment amount duly utilizing the services
The Risk Focused Internal Audit Report System has been
of VO leaders and VO wise lists. implemented in the Bank from July 2009, as suggested by our
6. Top 50 NPA accounts of each region are being reviewed by Sponsor Bank, State Bank of India. In order to strengthen the
respective GMs at frequent intervals. criteria to qualify for better ratings, Bank has raised the
benchmark for the Inspection ratings with effect from
7. Top management has been conducting audio 01.09.2011.
conferences at frequent intervals with Regional
For further strengthening of the audit system the new format
Managers, Manager (Adv.), Desk Officers (NPAM) and of RFIA has been introduced in the Bank w.e.f.01.10.2016 as
high NPA branches and reviewing NPA position. advised by our Sponsored Bank, with the following rating
8. In the light of recent promises by political parties to waive system parameter-wise marks.
crop loans up to Rs. 2.00 lakhs, renewal of crop loans has Revised Rating Range of Marks
taken back seat. As such all our branches are conducting Well Controlled - A+ >=850
Gramasabhas in their area of operation. We have advised
Adequately Controlled - A >700 and <=850
to conduct at least four such Gramasabhas by each
Moderately Controlled - B >600 and <=699
branch for renewal of crop loans and SHGs.
9. Chronic NPA branches were allotted to HO officials for Unsatisfactorily Controlled - C <600
monitoring and reduction NPAs up to March 2020. The marks allotted under each parameter have also been
10. Conducted auction for Gold ornaments pertaining to revised as under:
Personal Gold Loans which became overdue, at common S. Parameter Revised
N Format -Marks
date at quarterly intervals.
1 Business Development 100
In addition, the Bank strengthened its stressed assets
2 Credit Risk Management 450
management by revamping its NPA management
3 Operational Risk Management 410
Dashboard to track daily additions / Upgradations &
4 External Compliance 30
launched a in house developed suit file web portal for
5 Self-Audit 10
automation of entire process involved in filing suits for
effective monitoring of Suit file Accounts by Branches and Revised reporting format of Risk Focused Internal Audit (RFIA)
controllers. Further, the Bank is in the process of has been implemented during the year, incorporating IS & IT
developing an in house SARFAESI web portal for effective Risk scrutiny in it.
monitoring of SARFAESI NPA accounts. Branches with 'Well Controlled – A+' and 'Adequately
Controlled - A' ratings are audited within 18 months from the
previous audit date while the Branches with 'Moderately
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Controlled - B' and 'Unsatisfactorily Controlled - C' rated aspects, verification of Assets Quality etc.
branches are audited within a year. Apart from this, the following audits have also been carried
During the year 516 branches have fallen due for Audit and out to enhance the efficiency levels:
514 branches have been audited. Rating acquired by 514 Income Audit
branches is as under:
Income Leakage Audit has been conducted at 386 branches
Rating Out of 514 Branches and recovered Rs. 123 lakhs.
audited during 2019-20 Special Audit
Well Controlled - A+ 358 A special audit was conducted in 13 Branches for Advance
Adequately Controlled - A 156 limit of Rs. 50 lakhs and above covering 78 loan accounts,
Moderately Controlled - B - Special Assets Verification for 3 Branches in Khammam Region
Unsatisfactorily Controlled - C - were also conducted.
Total 514 Compliance Audit
Compliance Audit was conducted at 53 branches during this
The reports submitted by the Auditors have been dealt with by year as per the schedule.
taking corrective measures, wherever necessary. The
IS Audit
Department has carried out its operations with fair and
without prejudice which helped in strengthening the systems IS Audit has been conducted at 11 Regional Offices and Head
and procedures. Office including IT Cell with the help of CISA qualified retired
SBI official as per the instructions of Corporate Centre, State
Due to sustained efforts made by the department, the
Bank of India, Mumbai.
percentage of Well Controlled branches (A+) have increased
from 42.6% recorded during previous FY to 69.6% in FY 2020. Audit of other Administrative Units:
Out of 607 RFIA Reports which have fallen due for closure All the eleven Regional Offices and other departments i.e.
during the year, all the Reports have been dealt with and Accounts, SLC, Stationery cell, HRMS have also been audited.
closed. Management Audit
Snap Audit The Management Audit of our Bank has been conducted by
The schedule of Snap Audits has been advised to ROs on our Sponsor Bank, SBI. The audit has been concluded on
monthly basis to depute Officials from Region to other Region 03.12.2019 and final compliance on the Auditor's key
to carry out the Snap Audit of Branches to have effective audit observations/findings/remarks has been submitted to
of the Branches. 907 Snap Audits have been conducted during Corporate Centre, SBI, Mumbai.
the year 2019-20. NABARD Inspection under Section 35(6) of the Banking
Concurrent Audit Regulation Act 1949
As a part of internal control system in our Bank, Concurrent The NABARD Audit has been conducted as on 31.03.2019
Audit is introduced from the financial year 2012-13 as per the during 22.07.2019 to 09.08.2019 and the Report was received
policy guidelines issued by NABARD. Keeping in view the staff on 17.12.2019 with a Rating awarded 'A'. Compliance
availability, the Concurrent Audit is being conducted at 200 submitted on 14.02.2020 and further Compliance submitted
branches with the help of 38 Auditors. We propose to empanel on 18.04.2020.
the retired Bank Officials to cover at least 50% of the Credit Financial Inclusion
and other exposures of the Bank under Concurrent Audit
Continuing its trend, the Bank has actively taken part in
System in compliance with the guidelines issued by NABARD.
various financial inclusion activities during the year, thereby
The Scope of Concurrent Audit is designed to cover (a) increasing the spread of digital banking channels in the areas
handling of cash (b) safe custody of securities (c) exercise of which do not have any banking presence.
discretionary powers (d) sundry and suspense accounts (e)
To enhance the reach and add convenience to the customers,
clearing differences (f) off balance sheet items, security
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the bank has increased its Bank Mitras from 1867 in FY 2019 to facilities to the people at their door steps by leveraging
2056 Bank Mithras as on 31.03.2020. Of which 1867 Bank technology.
Mitras are operating in Sub Service Areas (SSA) and 189 Bank The Bank Mitras use the hand held Micro ATM devices to carry
Mithras in Non SSA equipped with micro ATMs. They are out the banking transactions in real time. The following
operating in 4444 villages in the erstwhile districts of banking transactions are enabled at Bank Mitra Points:
Khammam, Mahabubnagar, Nalgonda, Medak and Warangal
in Telangana State and Vishakhapatnam, Vizianagaram and a. Cash withdrawal and deposit
Srikakulam districts in Andhra Pradesh State, which do not b. Receipt of loan instalments
have any formal banking outlet. Out of 4444 villages, 825 c. AEPS transactions both Onus and Off us
villages are with population of 2000 and above and remaining
d. RuPay Debit card transactions both Onus and Off us
3619 villages with a population less than 2000.These Bank
Mithras have become an extended arm for implementation of e. Aadhar Seeding facility.
our Banks Financial Inclusion policy in tune with Government f. Facility of mobile number seeding to bank account.
of India guidelines. These Bank Mitras provide banking
Training programme for Bank Mitras and Debt Recovery Agents

at our SLC, Warangal
Door to Door CASA Campaign by Ontimamidi Branch Staff
Awarness programme conducted for Bank Mitras by Bank at Siddipet
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The entire Financial Inclusion (FI) operations at BCAs work on Mobile ATM Demonstration Van
the principle of Biometric verification of the beneficiaries
In order to promote Digital Financial literacy, NABARD from its
through micro ATMs and are online, hitting our CBS server
Financial Inclusion Fund (FIF) providing grant assistance for
instantly through Third Party Integration, which facilitates
demonstration of Banking Technology through Mobile van.
updation of transactions carried out by BCAs on real time
basis, in CBS Server, via TSPs' Servers. The main objectives of Mobile ATM- Demonstration Van are
The following is the total Bank Mitra Transaction and share of i. Spreading Financial Literacy
transactions (%) performed at Bank Mitras when compared ii. Demonstration of Various digital banking technologies
with the total bank transactions for Digital Financial Literacy
S.No Particular 2018-19 2019-20 iii. Demonstration of micro ATM, ATM , POS and Rupay card
1 FI Transactions 4974087 6232546 (19.84%) transactions.
2 AEPS ON-Us 5260057 7716063 (24.56%)
iv. To increase the activation of Rupay cards, specifically
3 AEPS Acquirer OFF Us 985163 1029358 (03.27%) cards issued under PMJDY.
4 AEPS Issuer OFF Us 2415575 3499528 (11.14%)
v. Demonstration of ATM transactions. Micro ATM usage
5 RUPAY Card transactions 98209 288744 (0.91%)
and precautions to be taken while doing ATM
No. of Bank Mitra transactions almost doubled during the FY transactions.
increasing from 59.47 lakhs (involving an amount of We have procured four new Mobile ATM demo vans during
Rs. 1820.65 Crore) to 109.17 lakhs (involving Rs. 4903.39 the year, two each for Andhra Pradesh and Telangana states.
Crore) as on 31.3.2020 at a growth rate of 83.57%. The vehicle moves across all the operational districts of our
As at the end of the FY 2019-20, no. of SB Accounts opened Bank in Andhra Pradesh and Telangana states by prior
and maintained by Bank Mitras is 1066183 with a CASA scheduling of one week to ten days for each district. Our FLC
balance of Rs. 212.00 Crore compared to 911417 and balance counsellors have been given charge of handling the Mobile
of Rs. 148.68 Crore as on 31.3.2019). No. of RD Accounts ATMs during the tour and utilizing it for giving demonstrations
opened and maintained by Bank Mitras is 7061 (with a at the time of conducting Financial Literacy camps. We are
balance of Rs. 3.89 Crore). playing videos on Financial Literacy, Social Security schemes,
PMJDY through LED TV installed in vehicle for which people
Balances in Bank Mithra accounts has increased from
are getting attracted towards the Mobile ATM and attending
Rs. 148.68 Crore in FY 2019 to Rs. 212.00 Crore in FY 2020
the camps for getting awareness of usage of ATM vehicle. Our
registering a healthy growth rate of 42.58% in Bank Mithra
Bank Mithra sits in the Mobile ATM during the tour of vehicle
CASA deposits.
in a village and there Bank Mithra performs transactions,
The average balance in Bank Mitra Accounts has also likewise we are utilizing it for giving wide publicity on Bank
increased from Rs. 1529.19 per account to Rs. 1986.23 as on Mithra services & our Bank products.
31.3.2020.
New Mobile ATM van of the Bank

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we are with you!
inauguration of Mobile ATM van by Honourable Collector & District Magistrate, Shri J.Nivas, also attended by AGM-DD NABARD & LDM Srikakulam.
Financial Inclusion – Social Security Schemes (PMJJBY, We have enrolled new 183671 customers under Pradhan
PMSBY & APY) Mantri Jeevan Jyothi Bima Yojana during FY 2019-20, taking
Pradhan Mantri Jeevan JyotiBimaYojana (PMJJBY) the total accounts to 517662.
PMJJBY is a one-year life insurance scheme, backed by

Government of India, renewable from year to year, offering
coverage for death. People in the age group of 18 to 50 years
having a Bank account who give their consent to join / enable
auto-debit, are eligible. Aadhar would be the primary KYC for
the bank account. The life cover of Rs. 2 lakhs shall be for the
one year period stretching from 1st June to 31st May and will
be renewable. Risk coverage under this scheme is for
Rs. 2 Lakh in case of death of the insured, due to any reason.
The premium is Rs. 33O per annum which is to be auto-
debited in one instalment from the subscriber's Bank account
as per the option given by him on or before 31st May of each
annual coverage period under the scheme.
Financial Literacy Awareness camp at Cheruvupally, Nalgonda.
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Pradhan Mantri Suraksha BimaYojana (PMSBY) as personal maids, drivers, gardeners etc., launched in June
PMSBY is an accident insurance scheme and offers a one-year 2015 by the GoI. APY aims to help these workers save money
accidental death and disability cover, which can be renewed for their old age while they are working and guarantees
annually. The Scheme is available to people in the age group returns post retirement. Under the APY, there is guaranteed
18 to 70 years with a Bank account who give their consent to minimum monthly pension for the subscribers ranging
join / enable auto-debit on or before 31st May for the between Rs. 1000 and Rs. 5000 per month, depending on the
coverage period 1st June to 31st May on an annual renewal entry age and monthly contribution.
basis. Aadhar would be the primary KYC for the Bank account. Aadhar will be the primary KYC and all Bank Account holders
The risk coverage under the scheme is Rs. 2 lakh for accidental aged between 18-40 years are eligible for enrolment.
death and full disability and Rs. 1 lakh for partial disability. The
Total of 88418 enrolments were mobilised under Atal Pension
premium of Rs. 12 per annum is to be deducted from the
Yojana (APY) for FY 2019-20 taking the total to 202631
account holder's Bank account through 'auto-debit' facility in
accounts.Surpassing a landmark figure of 200000
one instalment.
enrolments. Average number of enrolments per branch
We have enrolled new 239051 customers under Pradhan under APY scheme went up to 114.08 during FY 2019-20.
Mantri Suraksha Bima Yojana during FY 2019-20, taking the
We stood 2nd among all the RRBs in the country and 1st among
total to 972589 accounts.
the SBI Sponsored RRBs
Atal Pension Yojana (APY)
APY is a pension scheme for unorganised sector workers such
Felicitation of Best performing Bank Mitras on the occasion of Women’s day in Centurion University, Perlakamidi, Odissa on 08.03.2020, attended
by Chairman Shri K Praveen Kumar and General Manager Shri P. Pardhasardhi
Digital Financial Literacy Awareness Camps (dFLAPs) Financial Literacy Centres (FLCs): With a prime objective to
Following the need of the hour and taking cues from RBI's impart financial literacy in the form of simple messages like
policies and initiatives, our Bank launched Digital Financial 'why save with Banks, why borrow from Banks, why repay the
Literacy Awareness Camps to create awareness among rural loans in time' the Reserve Bank of India has advised all the
people and encourage them to use Card technology, ATMs, Banks to set up one Financial Literacy Centre (FLC) each in the
micro ATMs, PoS transactions, use Mobile Banking, Mobile operating districts of the Bank. The Bank has opened 8 such
Wallets and to highlight the role of Bank Mitras engaged by the Financial Literacy Centres in 8 districts viz., Srikakulam,
Bank. Street shows have been deployed in the villages with Vizianagaram, Visakhapatnam, Khammam, Warangal,
the above contents so as to attract the rural customers to Nalgonda, Mahabubnagar and Medak in tune with the
upgrade their financial and technical skills. The publicity guidelines issued by the NABARD. The Bank has posted
material in the form of pamphlets, brochures and banners retired Bank staff to look after the affairs of FLCs as
were distributed during the camps to spread the message of counsellors. These FLCs are located at the district centres and
financial awareness among the rural people. We have housed in the Regional Offices. The Financial Literacy
conducted 8909 camps through branches Counsellors have conducted 1603 Financial Literacy
Awareness Camps during the year.
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Aadhar Enrolment and Updation Centres Rs. 32.08 Crore and commission of Rs. 5.54 Crore during the
Following the mandate from Government of India for all the year previous FY 2018-19.
Banks to open Aadhar Enrolment and Updation Centres in at SBI General Insurance
least 10% of their Branch network, our Bank has initiated the We have commenced SBI General Insurance Business during
task of opening Aadhar Enrolment Centres at 76 locations to the year 2015-16 as a Corporate Agent to market two
extend the services of Aadhar enrolment and updation to the Insurance products viz., Group Health Insurance Scheme and
public including our customers. Bank officials will assist in Group Personal Accidental Insurance Scheme apart from
enrolment process.148 officials have been identified to insurance to the Assets financed by the Bank to the eligible
supervise these Aadhar Enrolment Centres. and willing customers. The Bank mobilized a business
During the year, the Bank has activated all the 76 Aadhar premium of Rs. 25.17 Crore during the year 2019-20 vis-à-vis
Enrolment and updation Centres. Customers can do new Rs. 19.34 Crore business premium during the previous FY
enrolments at this centre in addition to getting modifications 2018-19. The Bank earned a commission of Rs. 2.99 Crore for
to the exiting cards. For new enrolment, the Bank does not the year 2019-20. vis-a-vis the commission of Rs. 92 Lakhs for
charge any amount, while for demographic modifications such the year 2018-19.
as address, name, gender, date of birth etc., they need to pay SBI Mutual Funds and SBI Credit Cards.
Rs. 50/- (incl GST) in the Branch.
We have entered into Corporate Agreement with SBI Mutual
Cross Selling Funds and SBI cards Pvt. Ltd as corporate agent for sourcing
SBI Life Insurance Mutual funds and SBI Credit cards. Required software has
The Bank is a corporate agent of SBI Life Insurance Corporation been developed by C-Edge and is incorporated in Bank Core
Limited, to meet the life insurance needs of the Bank's Banking Solution software. 78 Bank staff has cleared the
customers, as part of Financial Inclusion apart from earning National Institute of Securities Management (NISM) course
non-interest income. The Bank mobilized a New Business on mobilization of mutual funds and emerged as Association
Premium (NBP) of Rs. 30.81 Crore and earned a commission of of Mutual Funds (AMFI) certified employee for sourcing
Rs6.46 Crore during the FY 2019-20 vis-à-vis the NBP of business under Mutual funds.
Atal Pension Yojana (APY) Felicitation Program At New Delhi
Chairman Shri K. Praveen Kumar received the Award at the APY Felicitation Program in Four Categories (1) Outperformers (FY2019-20) Best performing Nodal Officer.
(2) Makers of Excellence 3.0 (FY 2019-20) Best performing Chairman RRB (3) APY Leadership Capital (FY 2019-20) Best Performing Chairman RRB
(4) Challengers Cup (FY201920) Award of appreciation Best performing RRB Category Large
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we are with you!
Liability Central Processing Centre (LCPC) apps among all RRBs in the country. During FY 2020 Bank has
achieved significant momentum in adoption of Alternate
LCPC Ashoknagar has been functioning in our Bank since 28 Delivery channels.
October 2013. This is a centralized system of maintaining
account opening forms of Savings Bank Account, Current
Accounts opened in branches.
The system ensures that all the key parameters of the
accounts opened are accurately keyed into CBS after thorough
verification of the KYC compliance obtained by the branches.
The images attached to the account like photographs and
signature are scanned and uploaded into CBS. The account
opening forms are safely stored centrally at Document
Archival Centre (DAC) for future use.
The Bank has added 161 more Branches under the ambit of
LCPC during the year, taking the total number of Branches to
501 as on 31 st March 2020. Now LCPC Ashoknagar is
processing Account Opening forms of all Branches in
Telangana State. A total of 8.78 lakh accounts have been
processed and logically concluded during the year, taking the
total number of processed accounts to 20.88 lakhs. 42% of the
total account opening forms were processed during current
Customer using our Mobile Banking App
year.
Keeping in view the increasing Business & growing customer
base , Bank has sought Boards approval for opening of one
more LCPC Centre in Andhra Region to cater to the needs of
Branches situated in Andhra Region (4 regions) & for setting up
a dedicated & independent Central Clearing Processing Centre
(CCPC) at Ashoknagar. Board has passed necessary resolution
& permitted the Bank to apply for license to both the centres.
Accordingly Bank has applied for RBI License for opening both
centres & license is expected soon.
Further LCPC is also nodal point for issuing of Personalized Inauguration of Passbook kiosk machine at our Ashoknagar Branch
Cheques to the customers & it has issued 59,639 personalized on 02.11.2019. By Chairman Shri K. Praveen Kumar
cheque books against customers request during the FY2019- Alternate Delivery Channels:
20 taking the total number of cheque books issued to v Mobile Banking registrations: During the year 1,31,923
1,49,654. customer registred in our Mobile Banking platform
Technology and Digitization v ATM Cards issued: During the year 4,60,724 new ATM
Bank continued to effectively leverage technology to deliver cards were issued.
enhanced customer experience& Business efficiency. Bank v POS Machines: During the year 417 POS machines are
has made a number of improvements to the customer installed.
experience in the app, making it more user-friendly& secure. v ADC transactions: Banking transactions through
We have added new sections like Debit cards hot listing, Green
Alternate Delivery Channels has been on the rise
PIN solution etc., to our Mobile Banking app. Our Mobile
whereby reducing the footfalls considerably in the
Banking app continues to remain as one of the highest rated
branches, thereby resulting in more focus on marketing
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we are with you!
and business development. Alternate Delivery Channels 4. Automation of Form-A generation: This utility has been
also facilitate 24 x 7 banking services at their developed for automatic generation of Form-A return in
convenience. The raising trend of ADC transactions is fortnight intervals, which is required to be submitted to
shown in the following table: (Rs. in Crore) NABARD.
2018-19 2019-20 5. Suit File Accounts Dashboard: The process of filing of suits
S Payment Mode No of Volume No of Volume involves lot of correspondence between branches and
No transactions per day transactions per day
per Day per Day controlling offices, which causes delay in tracking and
1 CTS 1466 6.03 925 6.85 reaching logical end. To overcome this difficulty, a web portal
2 RTGS 138 102.17 360 325.42 has been developed for automation of entire procedure
3 NEFT 7291 4.02 11743 5.66 involved in filing suits. Using this branches and administrative
4 IMPS 1601 0.23 2861 0.86 offices can monitor the suit file cases effectively for quick
5 POS 6900 0.86 7225 1.54 resolution. Court wise, Advocate wise MIS can be generated
6 ATM 28746 5.47 35140 7.82 by branches and controllers.
7 AEPS 31007 3.18 51414 6.19 6. Branch Visit Portal: A web portal has been developed to
8 MOBILE BANKING 3284 2.28 5465 5.17 facilitate the officials who are visiting branches to report the
9 NACH(APBS&ACH) 24478 0.15 27675 0.16 observations noted in the branch then and there at the
10 UPI 2104 1.89 56786 5.52 branches. The branch staff has been provided access to the
IT initiatives during the year portal to respond to the noted observations. This facility
Bank has also developed numerous IT tools during the course would enable the controllers to view the irregularities noted
of year to have better monitoring over the affairs in the Bank, by the visiting official and updates of corrective measures
thereby focussing more on business development initiated by the branch staff thereafter. Visit report
parameters. Some of the key IT initiatives taken up during the compliances can be tracked till the closure. This portal also
year are listed below: provides visiting official wise data and number of visits done
by an official during the financial year.
1. Profit and Loss, Balance Sheet Calculation Automation:
A web portal has been developed to generate the balance 7.Advances control return: This utility is an alternative to the
sheet and profit and loss position of the bank for any given manual system of sending monthly advance returns for
month. These reports are generated based on the data control to Branch manager/Regional office. On button click
available in CBS and by considering all other payables submission of the maker, all the loans advanced in the
receivables position of the bank. This portal also provides previous month will be sent to control of the checker based on
schedule wise summary for effective control on assets and their discretionary powers and scale of finance. The list of
liabilities of the bank. accounts sanctioned in branch would be shown in the portal
2. Treasury Investment Receivables Automation: A web on daily basis so that all the advances would be controlled
portal has been developed to capture all the SLR and Non-SLR online. The HO/ROs will also be able to access the control
investments of the bank and calculate the interest returns by logging in with their respective user Ids.
receivables, amortization values and profit earned on the sale 8. Vigilance Department Portal: A web portal has been
of investments on daily basis. These values are required for developed to host the circulars pertaining to vigilance and
arriving at profit and loss position of the bank. whistle blower policies. A vigilance pledge and quiz program
3. Staff Annual Appraisal Portal: This portal has been has been conducted to the staff members on the occasion of
developed to complete the annual appraisal process of all the Vigilance Awareness Week (28.01.2019 to 02.11.2019). It has
staff members online. This portal enables staff members to been targeted to extend this portal to develop the tracking of
submit their self-appraisal and mandatory learning details. vigilance related cases in next phase.
Reporting authorities can appraise the performance of staff
09. Staff Learning Centre (SLC) Automation: A web based
working under their control. It would also facilitate reviewing
system has been developed for registration of trainee
authorities to review the staff appraisals submitted by
employees / officials at SLC and for allotting rooms while they
reporting authorities. Budgets and achievements of staff in
enter SLC for any training program. This system would also
different parameters is also captured in this portal to award
the scoring accordingly. facilitate to carry out entry test and exit test to the trainees
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we are with you!
and also to obtain feedback of training from them. Customer Service & Complaints handling
10. Charges Monitoring Portal: This utility has been Bank continues to give at most priority for resolution of
developed to provide the Branch-wise / RO-wise / Bank as a customer grievances in stipulated time lines to ensure better
whole Charges statement web-page for the purpose of customer service. The Bank has put in place Complaint
verification by branches and monitoring by controlling offices. handling policy to redress the grievances of the customers of
This acts as a monitoring tool which displays the comparison the customers and improve the quality of customer service.
of charges debited in the current financial year in a The Bank has an online Complaint Management System
branch/office and can be used to submit charges control (CMS) Portal, through which Customers can lodge their
returns online replacing the earlier process of manual Complaints / Feedback in the CMS through Banks Website,
submission. Toll-Free & by Mail.
Some other portals launched during the course of the year are Complaints are also received at Head Office/ Regional
Advanced MIS Portal, Leased Agreement Tracking System, Offices/Branches. These Complaints are also uploaded in CMS
Online E-Notices generation, Performance Ranking Portal, Portal and customer gets an immediate automatic
NEFT-RTGS Transactions monitoring dashboard, Contract acknowledgement and can keep track of the Complaint.
Labour Attendance Management System & Dashboard to Nodal Officer l identified at Head Office, will direct the
verify Cash on hand vs retention limit. Complaints to the concerned Department and / or Regional
Web based CBS (Server less CBS):New web based (JAVA) CBS is Office for redressal. Access to the E-Complaints CMS Portal is
tested and implemented successfully in 208 branches during given to identified Officials in Regional Offices and Head
the financial year. This eliminated the need for local servers at Office to ensure that each and every complaint received at all
branches and enhanced security. levels is captured in the system so as to monitor the
Active Directory Services (ADS): Migration of branches from Complaints for timely disposal.
existing workgroup environment to Domain environment is Bank also formulated a robust Whistle Blower Policy. The
initiated during this year and 32 branches are successfully Whistle Blower Mechanism is an internal mechanism
migrated so far. This improves the IT security at branches and established for staff members to report to the management,
opens scope of centralized management of client systems at concerns about unethical behaviour, actual or suspected
branches/ offices. fraud or violation of bank's code of conduct without fear of
Computer Security Day was observed on 30.11.2019 and an retribution.
on-line quiz is conducted to all the staff. Hand-outs were Bank is also having dedicated toll-free to assist our customers
distributed among staff to create awareness on computer on any kind of issues & also for their valuable feed back on the
security and safe working in computerized environment. Banks services.
Pamphlets are also distributed to customers in bringing The General Manager, Inspection & Audit Department, is
awareness on computer security. designated as Principal Nodal Officer for customer complaints
Apart from above, Bank also took various initiatives for in the Bank. Moreover, all regional heads are designated as
educating customers to prevent them from risk of being nodal officers for their respective regions. Further, the names
targeted through cyber-attacks through various channels of respective nodal officers along with their contact numbers
such as SMS, Website, FLC camps etc. are displayed in all the branches of the Bank.
As part of DRP/ BCP, the provision of secondary connectivity All Branches are conducting customer meets every quarter
(SIM based) is introduced this year. So far 430 branches are and important customers are invited & Regional Office
equipped with the said secondary connectivity with auto officials / Regional Manager preside over the meetings
switch over facility from Primary to Secondary connectivity in depending on the availability. Furthermore, Regional Office
case of disruptions in Primary connectivity and vice versa. In Officials / Head Office Officials during their surprise visits to
case of any unforeseen eventuality, Bank has Disaster Branches also go through customer grievances and if any
Recovery Plan /Business Continuity Plan in place and their deficiencies were observed, corrective steps will be initiated.
effectiveness is periodically tested through drills. The status of Complaints is being put up to the Board of
Directors in every meeting for their review and information.
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Customer Complaints: Status as on 31st March 2020 Bank's service in the month of March 2020 on account of
S.No Particulars No. retirements / resignations) and its composition is as under:
1 No. of complaints pending at the beginning of
the year 07 March 2019 March 2020
Cadre % of total % of total
2 No. of complaints received during FY 2019-20 576 Number Number
Staff Staff
3 Total Complaints 583
4 No. of complaints redressed during FY 2019-20 560 Officers 1977 2085
5 No. of complaints pending as on 31.03.2020 23* a. OS-V 10 12
b. OS-IV 61 47
* Out of 23 complaints, most of them were closed during 62.20
c. OS-III 212 233 63.10
the first half of April 2020.
d. OS-II 487 550
The position of banking Ombudsman Complaints received
through / from Banking Ombudsman during the year. e. OS-I 1207 1243
Office Assistants 1127 35.40 1153 34.88
S.No Particulars No.
1 No. of complaints pending at the beginning of Office Attendants 77 2.40 67 2.02
the year 5 Total 3181 3305
2 No. of complaints received during FY 2019-20 82
3 Total Complaints 87 The representation of women in total force reached 23.5%.
4 No. of complaints redressed during FY 2019-20 77 Bank has taken several measures to provide safe and
5 No. of complaints pending as on 31.03.2020 10*
conducive environment for women employees such as
*5 Complaints are related to ATM Transaction failures and sabbatical leave, annual health check-up among other
3 received in last week of MARCH 2020. initiatives.
Right to information Act Bank has completely automated Annual Appraisals and
During the period 01.04.2019 to 31.03.2020, the Bank received a launched a IT tool exclusively for this purpose. This portal
total of 192 applications under RTI Act, 2005 and all of them were enables staff members to submit their self-appraisal and
disposed off within stipulated time frame by CPIO. Further total of mandatory learning details.
20 first appeals received and disposed by the First Appellate
Internal Complaints Committee
Authority (FAA).
Further more, two second appeals were preferred to the Central The Bank has also put in place operational guidelines and
Information Commission (CIC), New Delhi against the decisions of mechanism for effectively dealing with cases of sexual
FAA and they were disposed off favourably to the Bank. harassment /misdeeds against women employees in sync
with the provisions of The Sexual Harassment of Women at
Human Resource Management Workplace (Prevention, Prohibition & Redressal) Act, 2013
and constituted Internal Complaints Committees at 11
The past financial year saw HR Department implement quite a
Regional Offices and Head Office to deal with the complaints
few measures to enhance the experience of employees& to
boost their morale. of sexual harassment to ensure safe working environment for
women employees in the Bank. We have been sensitizing the
Employees are the biggest assets to the Bank, keeping this in
employees of both the genders to be fostering a healthy and
mind Bank had implemented vacation policy to Staff as a
conducive work environment. The number of cases received
prudent risk mitigation and preventive vigilance measure. As
and disposed will be placed before the Board once in 6
per the policy, all the confirmed officers and clerical staff are
months.
required to be away from their regular work / office for ten
continuous working days during a financial year. The details of the staff who exited the Bank's service during
The staff strength of the Bank as at the end of FY 2019-20 is the year on various grounds are furnished below.
3305, the staff strength (excluding those who exited the
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we are with you!
S.No. Reasons No. of Staff inculcate diverse and inclusive culture among staff to equip
them to handle the day to day functions well. All the
1 Retirement 121
recruitments have been completed through the Common
2 Resignations 67
Written Test including interviews conducted by IBPS.
3 Dismissed 1
Promotions
4 Removed 6
Promotion is an annual exercise & number of employees
5 VRS 21
promoted in different cadres in the promotion process for
6 Deceased 13
FY2020 is tabulated below. As many as 189 staff members
7 Terminated by SRC 1 have been promoted to next higher grade as under:
Total 230
S.No. Scale No. of promotions
73% of the total staff members (Total Staff-2277), who were on 1 Scale IV to V 4
the Bank rolls as on 31st March 2006, i.e., on the date of formation
2 Scale III to IV 9
of APGVB by amalgamation of five erstwhile RRBs, have
3 Scale II to III 48
retired/resigned as on 31st March.2020. The ratio of staff
recruited from 2009 onwards to the staff recruited in the 4 Scale I to II 78
erstwhile RRBs has increased gradually and now only 627 5 O Asst to Officer Scale -I 50
staff(~19%) is in service who have joined prior to 2009 and rest 6 O Attn. to O Asst. 0
2678 joined in the service after 2009 , which implies more than Total 189
80% of the Bank staff are either young / in the middle age group.
The average age of overall employees has come down over the Based on the manpower assessment as on 31.3.2019, the
years and the average age as on 31st March 2020 stands at vacancies to be filled by way of promotions have been arrived
36.3 years. at and promotions affected in terms of the RRBs
(Appointment of Officers and Employees) Rules 2017.The
Manpower planning and Recruitment
Written Test required to be conducted for promotion to Office
The Bank has been recruiting the Staff in various cadres through Assistant, Officer Scale-I, Scale-II and Scale-III was conducted
IBPS since 2009-10, as per manpower assessment and by IBPS.
requirement undertaken as on 31st March of every year in terms
The Bank has fulfilled the statutory requirement of giving pre-
of Thorat Committee recommendations, presently as per Mitra
promotion training to all SC/ST candidates, eligible for
committee recommendations approved by GOI.
promotion, prior to written test. This has enabled the SC/ST
Accordingly, based on the business volumes as on 31.3.2019, the
candidates to prepare themselves better, to give the written
Bank has taken up recruitment exercise for augmentation of staff
test.
in various cadres, including lateral recruitment of Scale-II and
Scale-III Officers in General banking and with specialization in Law,
Training - Staff Learning Centre (SLC)
IT, Marketing, Treasury, Agriculture, Chartered Accountants etc.
v APGVB SLC caters to the learning and training needs
During FY 2019-20 Bank has recruited 282 Officers in various
particularly in the field of rural banking and strives to
grades including specialist officers and 124 office Assistants.
develop skills of employees thereby enhancing
S.No. Cadre/Grade No. of Candidates recruited performance on the job.
during the FY 2019-20
v SLC designs and delivers training programs to impart
1 Office Assistants 124 knowledge and stimulate the learning process in the
2 Officers Scale-I 118 latest and emerging areas not limited to Banking,
3 Officers Scale-II 90 Finance and Management.
4 Officers Scale-III 14 v SLC serves as a focal point for meaningful, effective and
As learning is key for growth, the Bank's in house Staff efficient collaborative arrangements with national and
Learning Centre has been working continuously to train and international institutions for training and skill
development.
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For the FY 2019-2020

Special Programmes conducted MSME, HL & GPAB
Off-Site Programme Name
No of Programme conducted 10
Allotted 254
Attended 250
Particulars of Programs 2019-2020

No of Programmes 55
Allotted 2242
Attended 2093
% 93.37%
Chairman Shri. K. Praveen Kumar inaugurating the SLC building at
Cadre Wise Training Arranged to Staff Sangareddy on 06.01.2020
Apart from regular programs associated to KYC, AML,
Program Details 2019-2020
Investment Credit Portfolio, Agricultural Economics, Rural
Officers 1189
Development, Financial Inclusion, SME Lending, Housing
Office Assistants 902
Loans and other Special programs for external staff and
Office Attendants 2 academic community also.
On 29.01.2020, SLC, Sangareddy has organized a session on
Attended 2093
Financial Interventions and Socio-Economic Livelihood
SC 407 activities for 45 no.'s MMGS Scale – III staff of M/s Mizoram
ST 228 Grameena Bank (MGB), led by their Chairman Sri. V.Jaya
OBC 976 Chandra. The session has been highly interactive and
GEN 482 comprised of a field visit to study the functioning of the
Women 433 Mandala MahilaSamakhya (MMS) in Kondapur Mandal.
About 267 separate interactions were recorded by the MGB
Ex-Serv 60
staff. Majority of participants comprised of active groups from
External Programs Haridaspur, Terpole & Malkapur villages.
S.No Name of the Programme Target Allowed Atten
Group ded
1 Concurrent Auditors
Workshop (Contractual) AUDITORS 28 28
2 SHG-BLP- TGB, HYD Officers-TGB 30 29
3 Debt Recovery Agents
for Bank Mitra FIC 75 74
During the year Bank has shifted it’s SLC functioned at

Warangal to the self-owned newly constructed spacious
premises at Sangareddy admeasuring approx. 28,000 Sq.ft
deployed to augment the training system. During 2019-2020
SLC has conducted 55 programs comprised of 2093
participants.
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On 20.02.2020, a team of 60 students led by Dr. Pawan Kumar

Avadhanam, PhD. (Economics), Dean of Management Studies,
Institute of Public Enterprises (IPE), an autonomous centre for
higher education have requested for and an exclusive program
has been convened in the paradigm of Rural Development and
Financial Interventions. The sessions have paved the way for a
possible MoU for scheduling future events in the area of Rural
Economics, Farm Management and Agricultural Economy
Team Building Activity – TGB Participants @ Singur Village

APGVB SLC is now capacitated to execute offsite programs, on
MSME, Housing Loans & GPAB for selected HUB-Spoke
Branches and Regional Office staff in all regions to improve
high value and secured advances for diversification of
advances.
On 21.02.2020, it has been advised by NABARD that in lieu of

then urgent need to fillip the implementation of National
Rural Livelihood Mission, the Government India's flagship
Poverty Alleviation Programme, the capacity building of the
functionaries at the field level on SHG Linkage programme has
been felt increasingly necessary. Hitherto, the NABARD has
sought from APGVB to conduct a 3-Day intensive in-house
program for Telangana Grameena Bank staff 5th, 6th& 7th March
2020. Since the training requirements of the identified
bankers were adequately met, the NABARD advised that for
2020-21 more such programs may be conducted and due
Staff learing centre Building at Sanga Reddy - Lecture Hall
customizations be done for catering to the requirements of
respective banks. Complete financial support would be
offered by NABARD for all such programs.
Peddareddi Peta (V), Pulkal (M) - Interaction Program – 6th March 2020 Staff learing centre Building at Sanga Reddy - Computer Class Room
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Infrastructure / Faclities provided at Staff learing Centre, Sanga Reddy
Modern Video Conference facility Reception Hall
Group Discussion Room for Participents Library Room
Accomadition facility for trainees (A/c Single / Double Bedroom)
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The Bank has also deputed 67 Officers, essentially in the Learning Centres on important subjects like high value
higher cadres, to external training institutions like BIRD financing, Term Lending, SME finance, AML, ALM, KYC, RTI
(Lucknow), RBI (CAB, Pune), BIRD (Mangalore), MANAGE, Act, Treasury Management, Business Development etc. n
Hyderabad, IIBF, Hyderabad, ni-msme, Hyderabad, State Bank Enabled Word.”
INTERNATIONAL WOMEN'S DAY CELEBRATIONS 2020

We have been celebrating International Women's Day on 8th March every year. This year also we organised the events to highlight
the achievements of our Women staff members on 08.03.2020 with the theme “An Equal World is an Enabled Word.”
International Women's Day Celebrations on 08.03.2020 at SLC Sangareddy
Almost One fourth of our workforce constitute women staff Staff welfare Measures
members and they are working at all levels of hierarchy from
Mediclaim policy
Branch Manager to Office Attendant and shortly, the Chief
Manager grade will also have women members by way of In terms of Government of India letter No: F.8/1/2015-R RB
promotions. As we all know, all positions in the Bank call for dated 20.10.2016, our Bank has implemented Medical
leadership qualities, to be successful. As we observe there are Insurance Scheme as per Xth Bipartite Settlement to
women staff members with abundant leadership qualities and employees and officers along with their dependent family
capable of achieving success against odds. However, while members as detailed in Schedule IV. The Scheme covers
some people exhibit leadership qualities naturally, sometimes Employee + Spouse + Dependent Children + 2 dependent
the working environment with competitive spirit, will offer Parents / parents-in-law with a Sum Insured of Rs. 4.00 lakhs
enough stimuli to bring out inherent / hidden leadership and Rs. 3.00 lakhs for Officers and employees respectively.
qualities. Recognition of one's abilities always plays a big role We have also taken a Corporate Buffer to cover additional
in encouraging the members to take on higher roles and expenditure up to Rs. 4.00 lakhs and Rs. 3.00 lakhs for officers
responsibilities and succeed. and employees respectively, if the hospitalization
expenditure exceeds the sum insured. The Scheme, apart
On the occasion of IWD, we celebrated the achievements of
from facilitating hassle free admission into the hospital
our women members with titles “Woman Leader of the Bank
immediately and payment of cash, makes the settlement of
under BM's category” and for other positions viz., Accountant,
hospitalization expenses become much easier, saving
Field Officer and Office Assistant by taking into account their
administrative time considerably. The scheme also covers
P ro fe s s i o n a l a c h i e v e m e n t s , Pe rs o n a l a n d S o c i a l
domiciliary treatment expenses up to 10% sum insured.
achievements.
Around 11500 members including family members of Staff
We have also felicitated the Best Bank Mitra in every Region
have been covered under the Scheme.
on this occasion.
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Friendly Cricket match organized for staff at Khammam
Group Personal Accident Insurance Policy Retired Employees – Welfare Measures
As part of employee friendly measures, Bank has taken up the The welfare and comfort of retired employees' remains to be
initiative of Group Personal Accident Insurance Policy with the one of the key priorities of the Bank & Bank has ensured that
following sum insured to create a sense of security among the all terminal benefits viz., Gratuity, Encashment of privilege
staff members and towards building loyalty to the Leaves, Pension etc., to all the eligible retired staff on the date
organization of retirementare settled on the date of retirement of staff
SN Cadre Sum Insured members. Bank is also implementing Medical Insurance
Scheme for Retired Staff members and their spouse (Self-
1. Officer Scale-III & IV Rs.10 lakhs
Funded scheme) & as of March 31st 2020, more than 750
2. Officer Scale-I & II Rs.7.50 lakhs
retired employees have been covered under the scheme.
3. Office Assistants Rs.5.00 lakhs
Pension Scheme
4. Office Attendants Rs.3.00 lakhs
Bank has been implementing Pension scheme with effect
Our Bank has been facing severe attrition causing acute staff from 01st April 2018 consequent to the orders of Supreme
shortage and these measures will boost the morale of the staff Court extending pension to RRB employees.
members.
The Bank is maintaining adequate fund for payment of
Gratuity and Leave Encashment Fund Pensions to all the eligible. An amount of Rs. 206,31,78,297/-
The Bank is maintaining adequate provisions in respect of (Rupees Two hundred and Six Crore Thirty One Lakhs Seventy
Gratuity and Leave encashment. The total corpus in Gratuity Eight Thousand Two hundred and ninety Seven Only) is
fund as on 31.3.2020 is Rs. 135,34,96,626.14/- (Rupees One provided by the Bank to Pension fund during the FY 2019-20
Thirty Five Crore Thirty Four Lakhs Ninety Six Thousand Six based on the Actuarial Valuation report submitted by an
Hundred and twenty six Only)and Rs. 98,65,50,538.35/- independent Actuary.
(Rupees Ninety Eight Crore Sixty Five Lakh Fifty Thousand Five The total corpus in Pension Fund as on 31.03.2020 excluding
Hundred Thirty Eight and Thirty Five paisa only) corpus the provision amount is Rs 761,13,51,379/- (Rupees Seven
maintained in Leave Encashment. hundred and Sixty One Crore Thirteen Lakhs Fifty One
During the year, the total Gratuity paid to the exited Staff Thousand Three hundred and Seventy Nine Only).
stood at Rs. 25,12,08,736/- (Rupees Twenty Five Crore Twelve During the year, the total Pension paid to the pensioners is
Lakh Eight Thousand Seven Hundred and Thirty Six only) and Rs. 158,85,65,836/- (Rupees One hundred and Fifty Eight
Leave Encashment paid to the staff at Rs. 9,60,22,401/- Crore Eighty Five Lakhs Sixty Five Thousand Eight hundred and
(Rupees Nine Crore Sixty Lakh Twenty Two Thousand Four Thirty Six Only) out of which an amount of Rs. 85,78,72,122/-
Hundred and one Only). (Rupees Eighty Five Crore Seventy Eight Lakh Seventy Two
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Thousand One Hundred and Twenty Two Only) is paid towards look after the Vigilance administration. Deputy General
lump sum commutation. Manager (Vigilance), State Bank of India, Local Head Office,
Implementation of Scheme for Appointment on Hyderabad, on a monthly periodicity reviews the vigilance
Compassionate Grounds activities.
In terms of Government of India letter F. No. 7/38/2014-RRB All branches having aggregate Business of above Rs. 10 crore
dated 31.12.2018 received through NABARD letter No: have formed their Preventive Vigilance Committees (PVC)
NB.IDD.RRB/1216/316 (Compassionate Appint.) /2018-19 which will meet at quarterly intervals. RO PVCs at quarterly
dated 09 January 2019, revised Model scheme for intervals will meet to deliberate the critical issues raised in the
appointment on compassionate grounds as per the scheme in Branch PVC meetings. Head Office Preventive Vigilance
Public Sector Banks circulated by IBA to CEOs of PSBs vide Committee will meet at quarterly intervals to discuss issues
letter No. CIR.HR&IR/2014-15/532/476 dated 11 August raised by the RO PVCs. Officials from Vigilance Department,
2014, has been approved by the Board and implemented in State Bank of India, LHO, Hyderabad will be visiting either
the Bank. Branches/Regional Offices/Head Office once in a quarter to
sensitise the staff on preventive vigilance measures. Such
Industrial Relations
meetings were conducted on 29.06.2019 at RC Puram Branch,
Cordial relations are being maintained with Officers on 25.09.2019 at Nalgonda Branch and on 13.12.2019 at Head
Association & Employees Union in order to facilitate the staff Office, Warangal, where in Chief Manager from Vigilance
to work in a congenial atmosphere, thus, leading to business Department, SBI, LHO, Hyderabad participated.
development of the Bank, both qualitative and quantitative.
State Bank of India, Vigilance Department has organised two
The representations made by the Association & Union are
days' workshop on 20th June & 21st June 2019 for RRB officials
promptly addressed in order to look after the welfare of staff.
at SBILD, Marredpally, Secunderabad for dealing domestic
Welfare of SC/ST and OBC Employees enquiries as Enquiry Officers, Presenting Officers and
The Bank has maintained cordial relations with the SC/ST Investigating Officers and our bank has deputed 9 officials.
Welfare Association and OBC Welfare Association and
Bank has launched Vigilance Portal on the Bank's Vikas net in
complied with the statutory requirements as per the
the august presence of Shri Md Shariff, General Manager,
directives of Govt. of India and the National Bank, Accordingly,
NABARD, TSRO & Shri K Praveen Kumar, Chairman, APGVB on
the Bank has held structured meetings, as per the stipulated
2nd November, 2019 which is mainly aimed at disseminating
time lines, with the representatives of Welfare Associations.
information on preventive vigilance activities & measures,
The Bank has taken all steps to keep up the morale and vigilance advisories and vigilance related activities. It also
motivation of the employees. contains all circulars issued by Vigilance Department and
The end of financial year witnessed the COVID-19 outbreak & information of Suspensions/Dismissals. Our Bank has also
subsequent lockdown. Bank has taken all measures ensuring launched online vigilance quiz for all staff for increasing
essential services at the Branch level, Regional level and Head awareness about systems & procedures, other vigilance
Office level are not hampered. Bank has issued frequent related information.
communications on DO's and DONT'S and created awareness Bank has launched its Vigilance Manual on vigilance
among the Staff & BCP was effectively implemented. administration with the guidance and support of sponsor
Vigilance Administration: bank.
Vigilance administration plays a key role for every financial Vigilance Awareness week:
institution and it is a managerial function. In the present The Vigilance Awareness week from 28.10.2019 to
context as the Bank is growing in size and with the infusion of 02.11.2019 with the main theme “Integrity – a way of life”
new and young work force, which now constitute over 80% of was conducted with renewed fervour and with greater
the total staff, vigilance plays aprominent role. Vigilance participation from Head Office, Regional Offices and Branches
together with sensitization to be vigilant has been the thrust by displaying banners, conducting gram Sabhas, elocution
area of Bank. Chief Vigilance Officer is posted in the Bank to
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and essay writing competitions for school/college children Vigilance Awareness week being observed Head Office, Regional Office
etc. All the staff members have undertaken e-pledge during and at Branches
the week &1923 staff participated in online quiz. Grama
Sabhas were conducted by the branches to create awareness
among the public on anti-corruption and Preventive
Vigilance. In addition to the participation of customers, the
Bank also ensured involvement of younger generation with
more than 2000 students participating in various events
during the week.
An exclusive session on preventive vigilance is being taken by
the CVO of the Bank, in all training programmes & workshops
conducted by the bank, to sensitize all the staff members
about vigilance aspects in day to day operations.
During the FY Bank has reviewed and adopted Whistle Blower
Policy to align the policy in context with prevailing regulatory
guidelines.
Rolling out of Vigilance portal by Shri K I Shariff GM NABARD
Vigilance Awareness week Rashtriya Ekta Diwa being observed by

Sangareddy RO staff.
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Board Attendance of Directors at Board Meetings during the

calendar year 2019
The Board of the Bank is constituted by
S No of No of
(1) Chairman of the Bank (Chairman of the Board) Name of the Director WEF Meetings Meetings
No held attended
(2) Two non-official directors appointed by Government of
1 Shri K. Praveen Kumar 02.02.2019 9 9
India
2 Non Official Director
(3) One nominee director each from Reserve Bank of India – Vacant* -
and NABARD 3 Non Official Director
– Vacant* -
(4) Two nominee directors from Sponsor Bank
4 Reserve Bank of India
(5) Two nominee directors from state Government of A.P./ Shri Y. Rambabu 01.04.2018 9 8
Telangana. 5 NABARD
Board Meeting Rules stipulate that the Board meets minimum Shri Sukanta K. Sahoo 10.07.2019 9 6
Shri CSR Murthy 21.05.2018
six times a year, at least once in a quarter. As against the
6 Sponsor Bank (SBI)
stipulated minimum number of six meetings, Board met 9
Shri J Prakash Raman 30.09.2019 9 7
times during the calendar year. Shri Kasi Srinivas 16.09.2017
Minimum quorum for the Board Meeting to transact business 7 Sponsor Bank (SBI)
is four directors and no meeting was adjourned for want of Shri S. Ganesan 07.09.2017 9 8
quorum. 8 Govt of A.P.
Sri KVV Satyanarayana 06.11.2017 9 1
Adequate notice is given to all directors to schedule the Board 9 Govt. of Telangana
Meetings, agenda and detailed notes on agenda were sent at Shri Rayi Ravi, Addl.Secy 27.04.2019 9 4
least seven days in advance and a system exists for seeking Shri Patil Prashant Jeevan 11.10.2016
and obtaining further information and clarifications on the IAS
agenda items before the meeting and for meaningful
participation at the meeting.
*The term of Govt of India Nominee Directors has completed
ATTENDANCE AT BOARD MEETINGS during September 2016 and proposals were sent to Govt of
The Board / Committee Meetings are convened by giving India through NABARD/SBI for fresh appointment of directors.
appropriate notice well in advance. The Directors / Members Fresh appointments are yet to be made by Govt of India and
are provided with appropriate information in the form of presently these two posts are vacant.
agenda items in a timely manner, to enable them to
During the intervening period of two Board Meetings, as and
deliberate on each agenda item and make informed decisions
when warranted, the Board has transacted the business by
and provide appropriate directions to the Management in this
regard. Majority decision is carried through while the means of Circulation of 12 agenda notes during the year 2019,
dissenting members' views are captured and recorded as part which were confirmed by the Board in its next Meeting The
of the minutes. Board has undergone the following changes in the
composition on account of transfer / superannuation of
Video-conferencing facility or other audio visual means are
also provided at the Board / Committee meetings in case any officials during the year.
director is unable to physically remain present at the v Shri Sukanta K. Sahoo, Deputy General Manager,
meetings but wishes to participate in the meetings. NABARD, TSRO, Hyderabad was nominated as Director in
_________________________________________________ place of Shri CSR Murthy, General Manager, NABARD,
TSRO, Hyderabad.
Dates of the Board Meetings held during the year: v Shri Jyoti Prakash Raman, Deputy General Manager(ABU)
13.02.2019, 12.04.2019, 03.05.2019, 07.06.2019, , State Bank of India , LHO , Hyderabad was nominated as
18.07.2019, 14.08.2019, 27.09.2019, 15.11.2019, Director in place of Shri Kasi Srinivas , Deputy General
24.12.2019. Manager , State Bank of India , LHO , Hyderabad.
v Shri Rayi Ravi, Addational Secretary in Finance Dept. took
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charge as Telangana State Government Nominee transparency in the Bank's accounts and adequacy of
Director replacing Shri Patil Prashant Jeevan, IAS, accounting controls to address the risks faced or likely to be
Magistrate and District Collector, Warangal. faced by the Bank.
The Bank places on record the invaluable services rendered by v Financial position – Balance Sheet and Profit & Loss
the Director Shri Kasi Srinivas, Deputy General Manager, State Account statement
Bank of India , Shri CSR Murthy, General Manager, NABARD, v Position of house keeping and Inter Office reconciliation
TSRO, Hyderabad and Shri Patil Prashant Jeevan, IAS, (BCGA) and outstanding entries.
Magistrate and District Collector, Warangal as Director on
v Certification of holding securities as reported to the RBI
Bank's Board.
every quarter by Concurrent Auditor.
Sub-Committees of the Board v Bank's participation in treasury transactions
Audit Committee of the Board v Status of frauds surfaced etc.
The Audit Committee, constituted with one SBI-nominee- Fraud Monitoring Committee
director as Chairman and nominee directors of RBI, NABARD Fraud Monitoring Committee, a sub-committee of the Board,
and Govt. of India as members has met 3 times during the year constituted in terms of NABARD guidelines, met three times
and reviewed the following areas: during the year and reviewed the fraud cases and suggested
v Position of Conducting of different Audits expediting the closure of the cases.
v Common irregularities observed in (a) Risk Focused Special Review Committee
Internal Audits (b) Snap Audit Reports (c) Concurrent As per Service regulations of Officers and Employees of the
Audit. Bank, a Special Review Committee has met one time during
v Audit of Regional Offices, Accounts Department at Head the Calendar Year 2019-20 and took up review of the
office performance of the officers who completed 55 years of age or
30 years of service and took a view for extension of service up
v Special Audits
to superannuation or to decide further review in a future date
v Review and follow-up action on the Internal Audit Reports,
before superannuation.
particularly of “Unsatisfactory” branches and large
branches and also on Concurrent Audit observations. Acknowledgements
v Follow-up action on irregularities pointed out by Internal
The Board of Directors of the Bank would like to express
Auditors at large branches in RFIA and in the Concurrent
their sincere gratitude for the continued trust and
Audit Reports.
patronage received from the customers who have stood
v Branches where audit rating is downgraded.
with the Bank all through. The feedback received from
v Compliance for NABARD inspection Report, Statutory customers by way of suggestions / complaints/ interactions
Audit Report, Management Audit, RFIA, Snap Audit
during the meetings on the service element have helped
reports, Concurrent Audit reports, Bank Mitra Audit
the Bank to take corrective measures and new initiatives to
Report.
improve our efficiency levels.
v Fixing accountability for unsatisfactory compliance of
Audit reports delay in compliance and non-rectification of The Board takes immense pleasure in expressing their
deficiencies. gratitude for the guidance and cooperation received from
v Review on omissions on the part of Internal Inspecting the Sponsor Bank, Government of India, both the state
Officials/ Concurrent Auditors to detect serious Governments Telangana and Andhra Pradesh, Reserve
irregularities which come to light later Bank of India, NABARD, other Financial Institutions and
v Periodical review of the accounting policies/systems Banks for their unflinching and valuable support to the
controls in the Bank with a view to ensuring greater Bank from time to time.
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Further, the Board would like to convey its gratitude to Shri Apart from our customers, the support received from the
Dinesh Khara, MD, State Bank of India, Corporate Centre, Government Departments / Institutions of both Telangana
Mumbai, Shri S.P. Singh, Chief General Manager (A&S), SBI, and Andhra Pradesh States was immense and augmented
Corporate Centre, Shri S. Ganesan, General Manager our resources. The Board wishes to thank Telangana State
(RRBs), SBI, Corporate Centre and all the team members in Co-operative Apex Bank Limited (TSCAB), the Andhra
A&S Department, SBI, Corporate Centre Mumbai. The Pradesh State Co-operative Apex Bank Limited (APCOB),
new initiatives introduced by the Corporate Centre to The Advocates Mutually aided Co-operative Society
enhance the capacity building of the Staff and to increase Limited (MACS Society), Hyderabad, Pollution Control
the business development and business reengineering by Boards three Nidhi Credit Co-Op Federation Ltd, Marked,
way of setting up of AMHs have proved to be extremely Industrial Development Corporations and Endowments
useful in taking this Bank forward. The Bank is indebted to Departments of both Telangana and Andhra Pradesh States
these executives for their constant hand holding. for their patronage.
We will be failing in our duty if we do not acknowledge the The Board extends its heartfelt gratitude to M/s Rao &
help extended by NABARD and State Bank of India, Local Kumar, the Central Statutory Auditors of the Bank and
Head Office, Hyderabad in sparing their Officers to be other Statutory Branch Auditors for their cooperation in
members of the Selection Committees constituted for completing the Audit of the Bank's Financial Year 2019-20
promotions. in time.
The Board conveys its gratitude to Shri Subrata Das, The Board also expresses its gratitude to all Public
Regional Director, Reserve Bank of India, Hyderabad; Shri. Relations Officers, Print and Electronic media for their
T. Srinivasa Rao, Banking Ombudsman, RBI, Hyderabad for cooperation in giving wide publicity for the Bank. The
their support. The Board also acknowledges the great Board also thanks the Officers Association, Employees
support and affectionate guidance from Shri Vijay Kumar, Union and SC/ST/OBC Welfare Associations for their
Chief General Manager, NABARD TSRO and his team of constructive role played in overall development of the
General Managers Shri B.K. Mishra, Shri K.I. Shariff and Shri Bank.
S. Selvaraj, Chief General Manager, NABARD, APRO, Officer Bank also wish to place on record their appreciation of
in Charge Shri P N Praveen Kumar, CGM and General employees for their commendable efforts, teamwork and
Manager Shri Prabhakar Behera. professionalism in taking the Bank's business upward and
The Board also expresses sincere thanks to all the District Bank's image forward. The total dedication exhibited by
Collectors, Project Directors of DRDA, IKP, DWMA, the employees has put the Bank on top and they deserve
SC/ST/BC Minorities and Housing Corporations of all the all appreciations and accolades from all stake holders.
districts in Telangana and Andhra Pradesh where our Bank
is operating, for their support and encouragement.
The Board would like to gratefully acknowledge the

For and on behalf of Board of Directors of
support rendered by our Technology Service Providers viz.,
M/s C-Edge Technologies, Mumbai, M/s National
Payments Corporation of India, M/s Irix Technologies and
Accordingly Gram Tarang Inclusive Development Services (K. Praveen Kumar)
Pvt Ltd (GTIDS). Chairman
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in the Press
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Performance in Figures
Balance Sheet
Profit & Loss A/c
Schedules
Notes to Accounts
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INDEPENDENT AUDITORS' REPORT

To Rao & Kumar
The Shareholders Chartered Accountants
Report on the Financial Statements
Qualified Opinion
1. We have audited the accompanying financial statements of Andhra Pradesh Grameena Vikas Bank (“the Bank”) as at March 31,
2020, which comprise the balance sheet as at March 31, 2020, the statement of Profit and Loss and the statement of cash flows
for the year then ended, and a summary of significant accounting policies and other explanatory information. Incorporated in
these financial statements are the returns of:
i. The Head Office and 39 Branches audited by us;
ii. 403 Branches audited by Other Auditors
The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the
guidelines issued to the Bank by the National Bank for Agriculture and Rural Development (NABARD). Also incorporated in the
Balance Sheet and the Profit and Loss Account are the returns from 333 branches (including other accounting units) which have
not been subjected to audit. These unaudited branches account for 25.00% percent of advances, 25.05% percent of deposits,
and 18.64% percent of interest income and 17.50% percent of interest expenses.
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of
the matter described in the Basis for Qualified Opinion section of our report:
i. The Balance Sheet, read with the significant accounting policies and the notes thereon is a full and fair Balance Sheet
containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as
at March 31, 2020in conformity with accounting principles generally accepted in India;
ii. The Profit and Loss Account, read with the significant accounting policies and the notes thereon shows a true balance of
profit in conformity with accounting principles generally accepted in India, for the year covered by the account; and
iii. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Basis for Qualified Opinion
2. The onset and rapid propagation of COVID-19 has caused disruptions in the banking operations, restrictions on travel,
meetings and access to client locations and other practical diﬃculties resulting in Distance Audit / Remote Audit / Online Audit.
Further, certain regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by
disruptions and to ensure the continuity of viable businesses. We were unable to physically verify relevant information, items,
documents and records. As a result, we were unable to determine whether any adjustments were necessary in respect of the
bank's assets that it controls, its liabilities for which it is responsible, its income and expenses for the year, and the cash flow
statement.
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by ICAI. Our responsibilities under those
Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Bank in accordance with the code of ethics issued by the Institute of Chartered Accountants of India
together with ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the code of ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
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Emphasis of Matter
professional judgment, were of most significance in
3. We draw attention to Schedule 18 (II) (12)to the financial
our audit of the financial statements for the year
statements, which describe the possible impact
ended March 31, 2020. These matters were addressed
ofCovid19,policies adopted and disclosures required
in the context of our audit of the financial statements
under the relevant Circulars issued by RBI. Our opinion is
as a whole, and in forming our opinion thereon, and we
not modified in respect of this matter.
do not provide a separate opinion on these matters.
Key Audit Matters
4. Key audit matters are those matters that, in our
Key Audit Matter How it has been addressed
Impact of COVID-19 : Our Procedure:

The onset and rapid propagation of COVID-19 has caused Though the methodologies of conducting audit are likely to
disruptions in the banking operations, restrictions on travel, undergo a change, the objective of the audit does not change,
meetings and access to client locations and other practical which require the auditors to ensure that sufficient
difficulties resulting in Distance Audit / Remote Audit / appropriate audit evidence is available with the auditor based
Online Audit. Further, certain regulatory measures were on which he is able to express his opinion.
announced by RBI to mitigate the burden of debt servicing In Identifying and Assessing the Risks of Material
brought about by disruptions and to ensure the continuity of Misstatement and operating effectiveness of critical controls
viable businesses. through Understanding the Bank and its Environment the
Considering the nature of the restrictions, limitations, following issues had been considered:
regulatory requirements, existing business environment, 1) Operational disruption resulting in any changes to the
materiality and their possible impact on the operative business model.
effectiveness on the critical control systems and risk of
2) Employee's absence or work from home.
material misstatement the audit requires significant efforts
in verification, planning and performing alternative 3) Restrictions on travel.
procedures and exercise of more professional scepticism 4) Access to Systems, Data, Documents, Officials.
tomitigate identified risks / weakness and ensure 5) Inability to physically verify relevant information, items
compliance with Standards on Auditing. Further, this is a and records.
matter of high importance for the intended users of the
Specific Considerations adopted while conducting Distance
financial statement. Considering these aspects, we have
Audit / Remote Audit / Online Audit of Bank Branch under
considered this as a Key Audit Matter.
current Covid-19 situation :
1) Obtaining the data / documents required for the purpose
of conducting the audit in soft copy / scanned format.
2) Arrangement of visit to Nearest Branch / Central
Processing Cells (CPCs) or to make the files maintained at
CPCs available at the branch.
3) Seek support for presence of requisite branch officials.
4) Communications by email instead of physical mode
wherever necessary.
Adopting the SOPs under Covid-19 situation and strictly
complying with the government regulatory guidelines
issued.
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Key Audit matter How it has been addressed
Verification of Advances: Our Procedure:

Advances constitute 55.03 % of the bank's total assets. We have tested the design and operation of CBS to ensure
The carrying value of these advances (net of provisions) may that IT system is designed in line with the Master Circular on
be materially misstated if individual or collective income IRAC norms and other related circulars issued by RBI/
recognition, classification and provisions are not NABARD and internal policies developed by the Bank in
appropriately identified and estimated as per RBI guidelines. accordance with such Norms, including:
Identification of performing and non-performing assets, The accuracy of the data input in the system used for income
involves establishment of proper mechanism. The Bank recognition, asset classification and provisioning in
accounts for all the transactions related to advances in its accordance with RBI regulations
Information Technology System called Core Banking Solution
Business Logics/Parameters are in-built in CBS for Tracking,
(CBS). Further, NPA stamping and provisioning is also done in
Identification and Stamping of NPA.
the CBS. Considering the nature of the transactions,
regulatory requirements, existing business environment, Existence and effectiveness of monitoring mechanisms like
and the materiality, audit of advances require significant Internal Audit, Systems Audit, Snap audit and daily
efforts in verification of the income recognition, asset Concurrent Audit.
classification and provisioning. Further, it is a matter of high We have examined :
importance for the intended users of the financial statement. The Reports, MOCs and certificates issued by the Branch
Considering these aspects, we have considered this as a Key Auditors have been considered including observations made
Audit Matter. in the LFAR. Observations, if any, by various audits conducted
as per the monitoring mechanism of the bank including
NABARD Inspection and how they have been dealt with.
Our audit procedures included considering the
appropriateness of the Banks's accounting policies and
assessing compliance with the policies in terms of the
applicable accounting standards. We have examined the
efficacy of various internal controls over advances to
determine the nature, timing and extent of the substantive
procedures. We performed test of controls over asset
classification with specific focus on whether IRAC norms are
followed adequately along with the provisioning
requirements.
In carrying out substantive procedures, we have examined all
large advances while other advances have been examined on
a sampling basis. All the stressed accounts of significant
amount have been examined in detail.
Large numbers of Branches are being audited by the
Statutory Branch Auditors who are firms of Chartered
Accountants included in the panel of NABARD and appointed
by the Bank. We have made, among others, specific
communication to the Branch Auditors to examine the
advances. We have relied on the various returns relating to
advances audited by these Statutory Branch Auditors and
there report in respect thereof.
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Key Audit matter How it has been addressed
Provision for Pension: Our Procedure:

The bank has provided under a Defined Benefit Plan for The bank has a HRMS package in place where details of
pension of all the eligible employees. The pension liability is employees such as Name, Date of Birth, Date of Joining, Basic
reckoned based on an independent actuarial valuation Pay and other relevant information are being maintained.
carried out and bank makes such initial contributions, Details of all the eligible employees have been considered
periodically to the fund as may be required to secure from such package and are forwarded to registered actuarial
payment of the benefits under the pension regulations. The valuer along with assumptions for actuarial valuations.
cost of providing defined benefits is determined using the We have verified the mechanism in place to ensure
Projected Unit Credit Method, with actuarial valuations completeness of the employee data shared for valuation.
being carried out at each balance sheet date. Further, we have reviewed the experts' assessment of the
The measurement of provision being complex, requiring appropriateness and reasonableness of the assumptions
significant professional judgement and estimation in the submitted by the bank in relation to such valuation and for
selection of requisite long-term assumptions and any matters involving significant professional judgement; we
deficiency / error in such assumptions may result in have relied upon the methodologies adopted by the
inaccurate valuation as per AS 15 and consequent significant Actuarial Expert as suggested in “SA 620 – Using the Work of
impact on the Financial Assertions, in view of the same we an Expert”.
consider this to be a key audit matter.
Responsibility of the Management and those charged with Governance for the Financial Statements
1. The Bank's Board of Directors is responsible for preparation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of Bank in accordance with the applicable provisions of Regional Rural
Bank Act, 1976, Banking Regulations Act,1949, applicable guidelines of Reserve Bank of India (RBI) / NABARD accounting
principles generally accepted in India, including the Accounting Standards issued by Institute of Chartered Accountants of
India(ICAI).This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Bank and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditor's Responsibility for audit of financial statements
2. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:
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• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
7. We did not audit the financial statements / information of 333 branches included in the standalone financial statements of the
Bank whose financial statements / financial information reflect total advances of Rs. 4,830.80 Crore as at March 31, 2020 and
total revenue of Rs. 558.85 Crore (Interest on advances and Commission income) for the year ended on that date, as
considered in the standalone financial statements. The financial statements / information of these branches have been
audited by the branch auditors whose reports have been furnished to us, and in our opinion in so far as it relates to the
amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms “A” and “B” respectively of the Third Schedule
to the Banking Regulation Act, 1949.
Subject to the limitations of the audit indicated in paragraph 2 to6 above and subject to the limitations of disclosure required
therein, were port that:
a. We have obtained all the information and explanations which to the best of our knowledge and
belief, were necessary for the purposes of our audit and have found them to be satisfactory.
b. The transactions of the Bank, which have come to our notice, have been within the powers of the Bank.
c. The returns received from the offices and branches of the Bank have been found adequate for the
purposes of our audit.
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d. The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with
the books of account and the Returns.
e. In our opinion, proper books of account as required by Law have been kept by the Bank, so far as
appears from our examination of those books
f. The Reports on the financial statements of the Branches audited by the Branch Auditors have been
dealt with in preparing our Report in the manner considered necessary by us.
In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the applicable accounting
standards, to the extent they are not inconsistent with the accounting policies prescribed by RBI
For RAO & KUMAR

Chartered Accountants
Place: Hyderabad FRN: 003089S
Date: 10.05.2020
CA K S Vamsi Krishna
Partner
MNO: 229988
UDIN No.
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Head Office: Warangal
st
Balance Sheet As At 31 March 2020 (Rs in '000s)
Particulars Sch. As on 31.03.2020 As on 31.03.2019

CAPITAL AND LIABILITIES
Capital 1 94 08 50 94 08 50
Reserves & Surplus 2 2904 94 82 2286 76 34
Deposits 3 18495 69 07 16055 95 57
Borrowings 4 8465 87 52 6471 00 50
Other Liabilities & Provisions 5 1315 60 44 1729 63 51
Total 31276 20 35 26637 44 42
ASSETS
Cash and balances with RBI 6 634 79 82 810 94 53
Balances with Banks and Money at Call
& Short Notice 7 8172 26 70 4494 80 13
Investments 8 3838 85 34 5392 30 59
Advances 9 17234 46 95 14834 92 68
Fixed Assets 10 68 49 86 59 86 67
Other Assets 11 1327 31 68 1044 59 82
Total 31276 20 35 26637 44 42
Contingent Liabilities 12 68 15 65 31 54 37
As per our report of even date
For Rao & Kumar
Chartered Accountants For Andhra Pradesh Grameena Vikas Bank
FR No: 003089S
(CA. K S Vamsi Krishna) (Ch Sree Rama Somayaji) (K. Praveen Kumar)
Partner General Manager Chairman
M No : 229988
(Y Rambabu) (Sukanta K Sahoo) (Dinkar Argal)

Director Director Director
(Bhuvanendra Takoor) (Satyanarayana, IRAS) (R Ravi)

Place: Warangal
th
Date: 10 May 2020
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Profit & Loss for the year ended 31st March 2020 (Rs in '000)
Particulars Sch. Year Ended 31.03.2020 Year Ended 31.03.2019
1 Interest Earned 13 2603 51 33 2369 37 59
a. Interest/Discount on Advances/bills 1972 97 85 1728 79 81
b. Interest on Investments 329 61 35 398 81 15
c. Interest on Balances with RBI and Other

Inter Bank Funds Nil Nil
d. Interest on TDRs with Banks 300 92 13 241 76 63
II Other Income 14 409 93 00 287 95 22
a. Commission, Exchange and Brokerage 253 15 84 237 39 44
b. Miscellaneous Income 156 77 16 50 55 78
III TOTAL 3013 44 33 2657 32 81
IV Interest Expended 15 1390 47 25 1322 92 94
V Operating Expenses (a + b) 16 409 95 06 376 22 99
a. Employees Costs 272 26 33 266 19 18
b. Other Operating Expenses 137 68 73 110 03 81
VI Total Expenditure
(excluding provisions and Contingencies) ( 4+5) 1800 42 31 1699 15 93
VII Operating Profit before provisions and

Contingencies (3-6) 1213 02 02 958 16 88
VIII Provisions (other than tax) and Contingencies 319 61 99 807 57 07
IX Profit from Ordinary Activities before Tax (7-8) 893 40 03 150 59 81
X Tax Expense
a. Provision for Taxation-Current Year (276 92 88) (45 00 00)
b. Deferred Tax Asset 1 10 16 (43 71)
c. Earlier Years Adjustments (Excess) Nil 6 87 74
XI Net profit for the period from Ordinary

Activities after Tax 617 57 31 112 03 84
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(Rs in '000s)
Particulars Sch. Yr Ended 31.03.2020 Yr Ended 31.03.2019

APPROPRIATIONS
Net Profit for the period 617 57 31 112 03 84
Add: Brought forward Profit 1786 49 56 1700 95 29
Add: Excess Provision written back 61 17 Nil
Transfer to the Statutory Reserves 123 51 46 22 40 77
Transfer to the Capital Reserves 1 10 918 Nil
Special Reserve u/s 36(1)(viii) of IT Act, 1961 24 54 24 4 08 80
Profit Carried Over to Balance Sheet 2245 53 16 1786 49 56
Summary of Significant Accounting Policies 17
Disclosures and Notes to Accounts 18

For Rao & Kumar
FR No: 003089S
M No : 229988


Place: Warangal
Date: 10th May 2020
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Schedules forming Part of Balance Sheet As on 31st March 2020
SCHEDULE – 1 CAPITAL (Rs in '000’s)
Particulars As on 31.03.2020 As on 31.03.2019

Authorised Capital 2000,00,00 2000,00,00
(200,00,00,000 Equity Shares of Rs.10/-each)
Issued Capital 94,08,50 94,08,50

Subscribed Capital 94,08,50 94,08,50

Called up Capital 94,08,50 94,08,50

Less: Calls Unpaid NIL NIL
Add: Forfeited Shares NIL Nil
TOTAL 94,08,50 94,08,50
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SCHEDULE – 2 - RESERVES AND SURPLUS (Rs in '000s)
I. Statutory Reserve
Opening Balance 455 48 91 433 08 14
Additions during the Year 123 51 46 22 40 77
Deductions during the Year Nil Nil
TOTAL 579 00 37 455 48 91
II. Capital Reserve
Opening Balance 1 20 1 20
Additions during the Year 11 09 18 Nil
TOTAL 11 10 38 1 20
III. Share Premium
Opening Balance Nil Nil
Additions during the Year Nil Nil
TOTAL Nil Nil
IV. Revenue and other Reserve
Additions during the Year Nil Nil
TOTAL 14 31 49 14 31 49
V. Special Reserve u/s 36(1)(viii) of Income Tax Act,1961
Additions during the Year 24 54 24 4 08 80
TOTAL 39 00 76 14 46 52
VI. Investment Fluctuation Reserve
Additions during the year Nil 12 88 11
Deduction during the year Nil Nil
Total 15 98 66 15 98 66
Balance in Profit and Loss Account
Opening Balance 1786 49 56
Additions During the year 61 18
Profit for the year 458 42 42
TOTAL 2245 53 16 1786 49 56
Grand Total 290 94 82 2286 76 34
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Schedules forming Part of Balance Sheet As on 31 March 2020
SCHEDULE – 3 - DEPOSITS (Rs in '000s)
A. I. Demand Deposits
i) From Banks 1 19 81 Nil
ii) From Others 158 64 04 186 14 30
II. Savings Bank Deposits 7195 92 99 6469 96 96
III Term Deposits
i) From Banks 1628 93 05 745 57 92
ii) From Others 9510 99 18 8654 26 39
TOTAL 18495 69 07 16055 95 57
B. i) Deposits of Branches in India 18495 69 07 16055 95 57
ii) Deposits of Branches Out Side India Nil Nil
TOTAL 18495 69 07 16055 95 57
SCHEDULE – 4 - BORROWINGS
(Rs in '000s)
I. Borrowings in India
i) Reserve Bank of India Nil Nil
ii) Other Banks 1346 42 40 2 12 83
iii) Other Institutions (NABARD,NHB & MUDRA)
a) NABARD 7066 31 23 6376 07 97
b) NHB 53 13 89 72 79 70
c) MUDRA Nil 20 00 00
II. Borrowings Outside India Nil Nil
TOTAL 8465 87 52 6471 00 50
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SCHEDULE – 5 OTHER LIABILITIES AND PROVISIONS (Rs in '000s)

I Bills payable/Bankers Cheque 90 80 73 116 07 55
II Inter Office Adjustments (Net) 46 06 1 83 85
III Interest Accrued on Deposits 546 63 36 544 44 31
IV General Provisions:
a) Provision on Standard Assets 58 61 10 49 02 93
b) Standard Assets Provision-created on account of
moratorium 98 82 Nil
c) Frauds Provision 5 47 6 15
d) Audit Fee Provisions 84 00 80 00
e) Income Tax Provision 276 92 88 45 00 00
f) Pension Contribution fund provision 206 31 78 831 87 07
g) NPS Provision Nil 5 79 45
V Interest payables 57 30 27 74 41 86
VI TDS on Bank Term Deposits 9 01 73 9 13 48
VIII Deferred Taz Nil Nil
VIII Other Liabilities 67 64 24 51 16 86
TOTAL 1315 60 44 1729 63 51
SCHEDULE – 6 - CASH AND BALANCE WITH RESERVE BANK OF INDIA

(Rs in '000s)
I. Cash in Hand 104 04 90 149 93 45
II. Balances with Reserve Bank of India

i) In Current Account 530 74 92 661 01 08
ii) In Other Account NIL NIL
TOTAL 634 79 82 810 94 53
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SCHEDULE – 7 - BALANCE WITH BANKS AND MONEY AT CALL & SHORT NOTICE
(Rs in '000s)
I. In India
i. Balance with Banks
a) In Current Accounts 41 04 75 7 44 33
b) In Other Deposit Accounts (TDRs) 81312195 4487 35 80
ii. Money at Call & Short Notice
a) With Banks Nil Nil
b) With Other Institutions Nil Nil
TOTAL 8172 26 70 4494 80 13
II. Outside India
a) In Current Accounts Nil Nil
b) In Other Deposit Accounts Nil Nil
c) Money at Call & Short notice Nil Nil
TOTAL Nil Nil
TOTAL (I&II) 8172 26 70 4494 80 13
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SCHEDULE – 8 - INVESTMENTS (Rs in '000s)

I Investment in India
i) Government Securities 3753 85 35 5317 05 60
ii) Other Approved Securities Nil Nil
iii) Shares Nil Nil
iv) Debentures and Bonds Nil Nil
v) Subsidaries and /or joint Ventures Nil Nil
vi) Investment in Equity shares of National
Payment Corporation of India (Long Term) 24 99 24 99
vii) Others 84 75 00 75 00 00
TOTAL 3838 85 34 5392 30 59
II Investments Outside India
i) Government Securities Nil Nil
(Including Local Authorities) Nil Nil
ii) Subsidiaries and/or Joint Ventures Nil Nil
iii) Other Investments (To Be Specified) Nil Nil
TOTAL Nil Nil
TOTAL (I&II) 3838 85 34 5392 30 59
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SCHEDULE – 9 - ADVANCES
(Rs in '000s)
A. 1. Bills Purchased and Discounted Nil Nil
2. Cash Credits, Overdrafts and Loans

Repayable on Demand 12364 79 42 11222 27 26
3. Term Loans 4869 67 53 3612 65 42
TOTAL (A) 17234 46 95 14834 92 68
B.1. Secured by Tangible Assets 17234 46 95 14780 12 50
2. Covered by Bank / Government Guarantees Nil Nil
3. Unsecured Nil 54 80 18
TOTAL (B) 17234 46 95 14834 92 68
C.I. Advances in India
1. Priority Sector 15486 53 15 12714 73 40
2. Public Sector Nil Nil
3. Banks Nil Nil
4. Others 1747 93 80 2120 19 28
TOTAL (C.I) 17234 46 95 14834 92 68
C.II. Advances Outside India
1. Due from banks Nil Nil
2. Due from Others Nil Nil
TOTAL (C.II) Nil Nil
GRAND TOTAL (C.I+C.II) 17234 46 95 14834 92 68
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SCHEDULE – 10 - FIXED ASSETS (Rs in '000)
I. Land
At cost as on the 31st March of the Preceding Year 9 57 9 57
Additions During the Year Nil Nil
Deductions During the Year Nil Nil
TOTAL 9 57 9 57
II. Buildings
At cost as on the 31st March of the Preceding Year 161 60 1 57 28
Additions During the Year 8 47 49 4 32
Deductions During the Year Nil Nil
Depreciation as on 31st March of the preceding year 5 00 2 24
Depreciation during the year 6 90 2 77
TOTAL 9 97 19 156 59
III. Other Fixed Assets (including Furniture and Fixtures)
At cost as on the 31st March of the Preceding Year 128 46 54 120 39 77
Additions During the Year 18 67 57 10 13 34
Deletions During the Year 3 15 18 2 06 57
Depreciation upto the preceding year 78 83 65 70 28 19
Depreciation during the year 10 51 87 9 67 77
Depreciation on deletions 2 56 09 1 12 31
TOTAL 57 19 50 49 62 89
IV. Capital Work in Progress
At cost as on the 31st March of the Preceding Year 8 57 61 5 52 25
Additions During the Year 67 08 3 05 37
Deletions During the Year 8 01 09 Nil
TOTAL 1 23 60 8 57 62
TOTAL (I+II+III+IV) 68 49 86 59 86 67
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SCHEDULE – 11 - OTHER ASSETS (Rs in '000s)

1. Inter Office Adjustments (Net Nil Nil
2. Interest Accrued on investment 252 50 41 187 02 10
3. Advance Tax 397 00 00 170 00 00
4. Tax Deducted at Source 46 54 30 96
5. Stationery 64 70 50 93
6. Telephone Deposit 4 19 Nil
7. Subvention receivable from NABARD 607 53 13 620 16 75
8. Interest incentive receivable from NABARD Nil Nil
9. Interest Subvention Received from GOI (NRLM) Nil Nil
10. Prepaid Expenses - Insurance 3 17 68 3 33 18
11. Income Tax paid against Disputed Demand 45 23 88 44 07 73
12. Deferred Tax 1 85 81 75 65
13. Others 18 85 34 18 42 52
Total 1327 31 68 1044 59 82
SCHEDULE – 12 - CONTINGENT LIABILITIES (Rs in '000s)
Particulars As at 31.03.2020 As at 31.03.2019

Claims against the Banks not acknowledged as debts 53 58 29 18 45 00
Liabilities for partly paid Investments Nil Nil
Liabilities on account of outstanding forward exchange contracts Nil Nil
Guarantees Given on behalf of Constituents
a) In India 10 89 00 11 38 84
b) Out Side India Nil Nil
Acceptances, Endorsements and other Obligations Nil Nil
Other items for which the Bank is contingetly liable
(DEA Fund) 3 40 91 1 43 08
Unclaimed Bankers Cheques (treated as income in
earlier years) 27 45 27 45
TOTAL 68 15 65 31 54 37
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SCHEDULE – 13 - INTEREST EARNED

(Rs in '000s)
Particulars Year Ended 31.03.2020 Year Ended 31.03.2019
Interest/ Discount on Advances/Bills 1972 97 85 1728 79 81

Interset on Investments 329 61 35 398 81 15
Interest on Balances with RBI and Other Inter Bank Funds Nil Nil
Others 300 92 13 241 76 63
TOTAL 2603 51 33 2369 37 59
SCHEDULE – 14 - OTHER INCOME (Rs in '000s)

Commission, Exchange and Brokerage 253 15 84 237 39 44
Profit on Sale of Investment 40 67 44 14 49 56
Profit on Revaluation of Investments Nil Nil
Profit on Sale of Lands, Buildings and Other Assets Nil Nil
Profit on Exchange Transactions Nil Nil
Income Earned by way of Dividend etc, from subsidiaries/
Companies and /or Joint Ventures abroad /In India Nil Nil
Miscellaneous Income 116 09 72 36 06 22
TOTAL 40 99 300 287 95 22
SCHEDULE – 15 - INTEREST EXPENDED

(Rs in '000s)
Particulars Year Ended 31.03.20 YearYear Ended
Ended 31.03.19
31.03.2017
Interest on Deposits 1007 44 33 851
(Previous 28 19
Year)
Interest on Reserve bank of India / Inter Bank Borrowings 383 02 92 471 64 75
Others Nil Nil
TOTAL 1390 47 25 1322 92 94
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SCHEDULE – 16 - OPERATING EXPENSES
(Rs in '000s)
Salary Payments and Provisions to Employees 266 88 73 221 75 58
Gratuity Contribution Fund Nil 4 78 49
Leave Encashment Fund Nil 8 83 64
Pension Contribution Fund NIl 23 30 00
Director’s Fee, Allowances and Expenses Nil Nil
Medical Expenses 5 31 05 7 43 28
Leave Fare Concession 6 55 8 19
Rent, Taxes, Lighting and Fuel 19 06 91 16 88 74
Printing and Stationery 7 83 16 5 22 56
Advertisement and Publicity 21 33 16 12
Depreciation on Banks Property 10 58 77 9 70 54
Auditors Fee and Expenses 77 68 72 70
Legal Charges 10 77 1815
Telephone Charges 73 12 1 16 34
Repairs and Maintenance 13 64 23 09
Insurance 21 58 24 15 40 65
Traveling and Halting expenses 8 06 53 7 44 32
AMC for Software and Hardware 18 83 79 15 31 07
Books and Periodicals 94 10 89 70
Computerization 45 04 53 50
Vehicle and Fuel 2 20 49 1 76 22
Entertainment 82 60 78 59
Other Expenses (Sundries) 45 32 56 33 61 52
TOTAL 409 95 06 376 22 99
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SCHEDULE – 17 - SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Preparation:
The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis of
accounting on going concern basis, unless otherwise stated and conform in all material aspects to Generally
Accepted Accounting Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms
/ guidelines prescribed by the National Bank for Agriculture and Rural Development (NABARD) / Reserve Bank of
India (RBI), Banking Regulation Act 1949, Regional Rural Bank Act, 1976 and amendments thereto and Accounting
Standards issued by the Institute of Chartered Accountants of India (ICAI), and the practices prevalent in the
banking industry in India.
B. Use of estimates:
The preparation of financial statements requires the management to make estimates and assumptions considered
in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial
statements and the reported income and expenses during the reporting period. Management believes that the
estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ
from to these estimates.
C. Significant Accounting Policies:
1. Revenue Recognition:
1.1. Income and Expenditure are accounted on accrual basis, except otherwise stated.
1.2. Interest income is recognised in the Profit and Loss Account as it accrues except, (i) income from Non
Performing Assets (NPAs), comprising of advances and investments which is recognised upon realisation, as per
the prudential norms prescribed by the RBI or other regulatory authorities. (ii) overdue interest on investments
and bills discounted, (iii) Income on Rupee Derivatives designated as "Trading", which are accounted on
realisation.
1.3. Profit / loss on sale of investments is recognised in the Profit and Loss Account.
1.4. Income (other than interest) on investments in "Held to Maturity (HTM)" category acquired at a discount to
the face value is recognised only at the time of sale / redemption.
1.5. Commission & Exchange and Locker rent have been recognized on realization basis.
1.6. Interest on overdue term deposits is accounted for on renewal basis.
1.7. In case of suit filed accounts, legal and other expenses incurred are charged to Profit and Loss Account and at
the time of recovery of such expenses is accounted as income.
2. Investments:
The transactions in Government Securities are recorded on “Settlement Date”. Investments other than
Government Securities are recorded on “Trade Date”.
2.1. Classification: Investments are classified into three categories viz., Held to Maturity (HTM), Available for Sale
(AFS) and Held for Trading (HFT) as per RBI guidelines.
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2.2. Basis of classification:

I. Investments that the Bank intends to hold till maturity are classified as Held to Maturity (HTM).
II. Investments that are held principally for resale within 90 days from the date of purchase are classified as Held
for Trading (HFT).
III. Investments, which are not classified in the above two categories, are classified as Available for Sale (AFS).
IV. An investment is classified as HTM / HFT / AFS at the time of its purchase and subsequent shifting amongst
categories is done in conformity with regulatory guidelines.
However, for disclosure in Balance Sheet these are classified as under - Government Securities, Other Approved
Securities and Others.
2.3. Valuation:
i). In determining the acquisition cost of an investment:
a) Brokerage or Commission received on subscriptions is reduced from the cost.
b) Brokerage, Commission, Securities Transaction Tax (STT) etc., paid in connection with acquisition of
investments are expensed upfront and excluded from cost.
c) Brooking period interest paid / received on debt instruments is treated as interest expense / income and is
excluded from cost or sale consideration.
d) Cost is determined on the weighted average cost method for investments under AFS and HFT category and FIFO
basis (First in First out) for investments under HTM category.
ii) Transfer of securities from HFT / AFS category to HTM category is carried out at the lower of acquisition cost / book
value / market value on the date of transfer. The depreciation, if any, on such transfer is fully provided for. However,
transfer of securities from HTM category to AFS category is carried out on acquisition price / book value. After
transfer, these securities are immediately re-valued and resultant depreciation, if any, is provided
iii) Treasury Bills and Commercial Papers are valued at carrying cost.
iv) Held to Maturity category:
a) Investments under Held to maturity category are carried at acquisition cost unless it is more than the face value,
in which case the premium is amortised over the period of remaining maturity on constant yield basis. Such
amortisation of premium is adjusted against income under the head “Interest on Investments”.
b) Investments in equity shares of other companies are valued at historical cost. A provision is made for
diminution, other than temporary, for each investment individually.
v) Investments under AFS and HFT category: Investments under AFS and HFT category are individually re-valued at
market price or fair value determined as per regulatory guidelines, and only the net depreciation of each group for
each category (viz., (i) Government securities (ii) Other Approved Securities, (iii) Shares, (iv) Bonds and
debentures, and (v) others) is provided for and net appreciation, is ignored. On provision for depreciation, the book
value of individual security remains unchanged after marking to market.
vi) Investments are classified as Performing and Non Performing investments, based on the guidelines issued by the
RBI. Investments of domestic offices become non performing where:
a) Interest or instalment (including maturity proceeds) is due and remains unpaid for more than 90 days.
b) In the case of equity shares, in the event the investment in the shares of any company is valued at Rs.1/- per
company on account of the non availability of the latest balance sheet, those equity shares would be reckoned as
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NPI.
3. Loans or Advances and Provisions thereon:
3.1. Loans and advances are classified as performing and non-performing, based on the guidelines/ directives issued by
the RBI. Loan assets become Non Performing Asset (NPA) where:
i) In respect of agriculture advances:
a) For short duration crops, where the instalment of principal or interest remains overdue for two crop seasons,
and
b) For long duration crops, where the principal or interest remains overdue for one crop season.
ii) In respect of Non Agriculture advances:
a) In respect of term loans, interest and / or instalment of principal remains overdue for a period of more than 90
days.
b) In respect of Overdraft or Cash Credit Advances, the account remains “out of order”, i.e. if the outstanding
balance exceeds the sanctioned limit or drawing power continuously for a period 90 days, or if there are no credits
continuously for 90 days as on the date of balance sheet, or if the credits are not adequate to cover the interest
debited during the same period.
3.2. All advances have been classified under four categories i.e., Standard Assets, Sub-standard Assets, Doubtful Assets
and Loss Assets. Provisions are made as per the extant guidelines/directives prescribed by the RBI.
Provisions on Advances are made as under:
I Standard Assets: General Provision for Standard Assets at the following rates:
Direct Advances to Agriculture and SME sectors at 0.25%
Commercial Real Estate sector at 1%
Housing Loans >20.00 lacs @ 0.75%
All other advances not included in (1) & (2) above at 0.40%
II Sub-Standard Assets:
A loan asset that has remained non performing for a period less than or equal to 12 months is a Sub Standard Asset
General Provision of 15% on the total outstanding
Additional Provision of 10% for exposures which are unsecured ab-intio (i.e. where realisable value of security is
not more than 10% ab-initio).
III Doubtful Assets:

A loan asset that has remained in the sub-standard category for a period of 12 months is Doubtful Asset
Secured Portion Up to One year 25%

One to three years 40%
More than three years 100%
Unsecured Portion 100%
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5.3. Depreciation is provided on straight line method as per the following rates:
Description of Fixed Asset Depreciation rates
Buildings 1.6667%
Furniture & Fixtures other than Electrical Fittings and
Fixtures 10%
Electrical Fittings with 3 years life 33.33%
Electrical Fittings with 5 years life 20%
Electrical Fittings with 10 years life 10%
Safe Deposit Lockers, Fire proof data safe 5%
Computer systems & ATMs 33.33%
Computer software which does not form an integral part of 33.33%
computer hardware and cost of software development
Vehicles 20%
5.4. In respect of assets acquired during the year (for domestic operations), depreciation is charged on
proportionate basis for the number of days the assets have been put to use during the year.
5.5. Assets costing less than Rs. 5,000 each are charged off in the year of purchase.
6. Impairment of Assets:
Fixed assets are reviewed for impairment whenever events or changes in circumstances warrant that the
carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a
comparison of the carrying amount of an asset to future Net Discounted Cash Flows expected to be generated by the
asset. If such assets are impaired, the impairment to be recognised is measured by the amount which the carrying
amount of the asset exceeds the fair value of the asset.
7. Employee Benefits:
7.1. Short Term Employee Benefits:
The undiscounted amount of short – term employee benefits, such as medical benefits etc., which are
expected to be paid in exchange for the services rendered by employees, are recognized during the period
when the employee renders the service.
7.2. Long Term Employee Benefits
i). Defined Benefit Plans:
a. Gratuity:
The Bank provides for Gratuity liability based on actuarial valuation for all the eligible employees. The benefit is in
the form of lump sum payments to vested employees on retirement, or on death while in employment, or on
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termination of employment, for an amount equivalent to 15 days basic salary payable for each completed year of
service, subject to the cap prescribed by the Statutory Authorities. Vesting occurs upon completion of five years of
service. The Bank makes periodic contributions to a fund administered by Trustees based on an independent
external actuarial valuation carried out annually, and contributes to SBI Life Insurance Company Limited.
b. Leave Encashment:
The Bank provides for Leave Encashment liability. The benefit is in the form of lump sum payments to vested
employees on retirement, or on death while in employment and vesting occurs at different stages as per rules. The
Bank makes periodic contributions based on an independent external actuarial valuation carried out annually, and
contributes to SBI Life Insurance Company Limited.
c. Pension:
As per the order of Hon’ble Supreme Court of India, the Bank provides for pension to all eligible employees. The
benefit is in the form of monthly payments as per the rules to vested employees on retirement or on death while in
employment, or on termination of employment. Vesting occurs at different stages as per rules. The pension
liability is reckoned based on an independent actuarial valuation carried out and Bank makes such initial
contributions periodically to the Fund as may be required to secure payment of the benefits under the pension
regulations.
d. The cost of providing defined benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at each balance sheet date.
ii) Defined Contribution Plans such as Provident Fund are recognized as an expense and charged to the Profit &
Loss Account on accrual basis.
iii) The Bank operates New Pension System (NPS) for all staff joined on or after 1st April 2018 and
staff joined be between 1st April 2010 and 31st March 2018 and opted for NPS, which is a defined Contribution
Plan. As per the scheme employees contributes 10% of their basic pay and DA together with matching
contribution from the Bank.
iv) Other Long Term Employee benefits:
All eligible employees of the Bank are eligible for leave fare concession, home travel concession. The costs of such
long term employee benefits are debited to Profit & Loss account of the Bank, in the year of expense incurred.
8. Taxes on Income:
Income Tax expense is the aggregate amount of current tax and deferred tax expense incurred by the Bank.
Current tax expense and deferred tax expense are determined in accordance with the provisions of the Income Tax
Act, 1961 and as per the Accounting Standard 22 – “Accounting for Taxes on Income” respectively and which are
based on the tax laws prevailing in India. Deferred tax adjustments comprise of changes in the deferred tax assets
or liabilities during the year.
Deferred tax assets and liabilities are recognised by considering the impact of the timing differences between
taxable income and accounting income for the current year, and carry forward losses. Deferred tax assets and
liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the Balance
Sheet date. The impact of changes in deferred tax assets and liabilities is recognised in the Profit and Loss Account.
Deferred tax assets are recognised and reassessed at each reporting date, based on management’s judgement as
to whether their realisation is considered as reasonably certain. Deferred Tax Assets are recognised on carry
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forward of unabsorbed depreciation and tax losses only if there is virtual certainty supported by convincing
evidence that such deferred tax assets can be realised against future profits.
9. Contingent Liabilities & provisions:
9.1 In conformity with AS – 29, “Provisions, Contingent Liabilities and Contingent Assets”, issued by
the ICAI, the bank recognises provisions only when it has a present obligation as a result of a past event, and
would result in a probable outflow of resources embodying economic benefits will be required to settle the
obligation, and when a reliable estimate of the amount of the obligation can be made.
9.2. No provision is recognised for:
i). Any possible obligation that arises from past events and existence of which will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the bank; or
ii). Any present obligation that arises from past events but is not recognised because:
a). It is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; or
b). A reliable estimate of the amount of obligation cannot be made.
Such obligations are recorded as Contingent Liabilities. These are assessed at regular intervals and only that
part of the obligation for which an outflow of resources embodying economic benefits is probable, is
provided for, except in the extremely rare circumstances where no reliable estimate can be made.
iii). Contingent Assets are not recognised in the financial statements.
10. Special Reserves:
Revenue and other Reserve include Special Reserve created under Section 36(i)(viii) of the Income Tax
Act, 1961
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SCHEDULE – 18 DISCLOSURES & NOTES TO ACCOUNTS
I.Disclosures as per norms for RRBs
1. Capital
Sl.No Particulars March 2020 (%) March 2019 (%)
i) CRAR(%) 16.15 15.50
ii) CRAR – Tier I Capital 15.75 15.09
iii) CRAR – Tier II Capital 0.40 0.41
iv) Percentage of Shareholding of the :
A Government of India 50 50
B Government of Andhra Pradesh 15 15
C State Bank of India (Sponsor Bank) 35 35
2. Investments (Rs in '000s)
S.No Particulars March 2020 March 2019

1 Value of Investments
i) Gross value of Investments 3838 85 34 5392 30 59
ii) Provisions for Diminution 15 98 66 15 98 66
iii) Net value of Investments 3822 86 68 5376 31 93
2 Movement of provisions held towards
depreciation on investments
i) Opening Balance 15 98 66 3 10 55
ii) Add: Provisions made during the year Nil 12 88 11
iii) Less: Write off / Write back of excess provisions
during the year Nil Nil
iv) Closing Balance 15 98 66 15 98 66
The Bank has invested a sum of Rs. 24,99,200/- in National Payments Corporation of India (NPCI),
a company promoted by ten banks under the guidance of Indian Bank's Association.
3. Repo Transactions (Rs in '000s)
Minimum Maximum Daily Average As on

Item outstanding outstanding outstanding 31st
during the during the during the March,
year year year 2020
Securities Sold under Repos Nil Nil Nil Nil
Securities purchased under Nil Nil Nil Nil

Reverse Repos
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4. Non-SLR Investment Portfolio

i) Issuer composition of Non SLR Investments (Rs in thousands)
S. No Issuer Amount Extent of Extent of Extent of Extent of
Private below investment unrated unlisted
placement grade securities securities securities
1 2 3 4 5 6 7
i) PSUs NIL NIL NIL NIL NIL
ii) FIs NIL NIL NIL NIL NIL
iii) Banks NIL NIL NIL NIL NIL
iv) Private NIL NIL NIL NIL NIL
Corporates
v) Others (MF
& Equity shares of
NPCI) 84 99 99 NIL NIL NIL NIL
vi) Provisions
held towards NIL NIL NIL NIL NIL
depreciation
Total 84 99 99 NIL NIL NIL NIL
(ii) Non-Performing Non-SLR Investments (Rs in thousands)
Particulars Amount
Opening balance NIL
Additions during the year since 1st April 2019 NIL
Reductions during the above period NIL
Closing Balance NIL
Total provisions held NIL
5. Asset Quality
I. Non-Performing Assets (Rs in '000s)
S.No. Particulars March 2020 March 2019

i) Net NPAs to Net Advances (%) 0 0.34
ii Movement of NPAs (Gross)
(a) Opening balance 189 09 93 195 64 24
(b) Additions during the year 426 90 81 293 46 36
(c) Reductions during the year 417 51 16 300 00 67
(d) Closing balance 198 49 58 189 09 93
iii Movement of Net NPAs
(b) Additions during the year 131 36 74 75 53 99
(c) Reductions during the year 186 98 35 47 95 29
(d) Closing balance 0 55 61 61
iv Movement of provisions for NPAs
(Excluding provisions on standard assets)
(b) Provisions made during the year 102 73 89 11 63 07
(c) Write-off / Write-back of excess provisions 37 72 64 45 76 19
(d) Closing balance 198 49 57 133 48 32
During the year the Bank has fully provided provision on all NPA Accounts.
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ii. Details of Loan Assets subject to Restructuring (Rs in thousands)

i Total amount of loan assets subject to restructuring,
rescheduling, renegotiation Nil Nil
ii The amount of Standard Assets subjected to restructuring,
iii The amount of Sub-Standard Assets subjected to restructuring,
iv The amount of Doubtful assets subjected to restructuring,
Total (i) = (ii) + (iii) + (iv) Nil Nil
iii) Details of financial assets sold to Securitization (SC) / Reconstruction Company (RC)
for Assets Reconstruction
(Rs in thousands)
i No. of accounts Nil Nil
ii Aggregate value (net of provisions) of accounts sold to SC/RC Nil Nil
iii Aggregate consideration Nil Nil
iv Additional consideration realized in respect of accounts
transferred in earlier years Nil Nil
v Aggregate gain / loss over net book value Nil Nil
Total (i) = (ii) + (iii) + (iv) Nil Nil
IV) Details on non-performing financial assets purchased / sold

A. Details of non-performing financial assets purchased:
(Rs in thousands)
1 (a) No. of accounts / purchased during the year Nil Nil
(b) Aggregate outstanding Nil Nil
2 (a) Of these, number of account restructured during the year Nil Nil
(b) Aggregate outstanding Nil Nil
B. Details of non-performing financial assets sold : (Rs in '000s)
S.No. Particulars March 2020 Marh 2019
1 No. of accounts sold Nil Nil
2 Aggregate outstanding Nil Nil
3 Aggregate consideration received Nil Nil
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v. Provisions on Standard Assets (Rs in '000s)

1 Provisions on Standard Assets 59 59 92 49 02 99
6. Business Ratios

i Interest income as a percentage to Working Funds 9.33 9.32
ii Non-Interest income as a percentage to Working Funds 1.47 1.13
iii Operating profit as a percentage to Working Funds
(Before Provisions) 4.35 3.75
iv Returns on Assets (%) 2.21 0.44

v Business per Employee (Dep + Adv) (Rs'000) 11 44 29 10 28 43
vi Net profit per Employee (Rs'000) 18 69 3 52
7. Asset Liability Management – Maturity pattern of certain terms of Assets and Liabilities
(Rs in thousands)
Over 3 Over 6 Over 1 Over 3

29 days months months year year
1 to 14 15 to 28 Over 5
Particulars to 3 and and and and Total
days days years
months upto 6 upto 1 upto 3 upto 5
months year years years
Deposits 1019 67 29 350 79 21 1551 47 78 2092 87 04 5019 60 11 8179 06 49 159 15 81 123 05 34 18495 69 07
Advances 4518 27 41 114 41 53 615 70 71 1188 41 73 5772 66 32 29 49 10 30 45 06 4965 04 00 17234 45 86
Borrowings 0 0 489 65 1364 79 72 3152 88 25 2839 0810 1043 97 53 60 24 27 8465 87 52
Investments &
9794 442 00 00 1650 00 00 3940 87 00 2007 85 00 175 25 00 108 38 35 3644 74 00 11970 07 29
STDRs
Foreign
Nil Nil Nil Nil Nil Nil Nil Nil Nil
Currency Assets
Foreign
Currency Nil Nil Nil Nil Nil Nil Nil Nil Nil
Liabilities
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8. Exposures – Exposure to Real Estate Sector (Rs in thousands)

a Direct exposure
i Residential Mortgages above Rs. 20.00 lakhs lending fully
secured by mortgages on residential property that is or will be 1423 88 44 884 87 99
occupied by the borrower or that is rented (individual
housing loan upto Rs. 20 lakh may be shown separately)
Up to Rs. 20.00 lakhs 1222 42 99 1006 99 08
ii Commercial Real Estate
Lending secured by mortgages on commercial real estates 1097 75 Nil
(office buildings, retail space, multi-purpose commercial
premises, multi-family residential buildings, multi-tenanted
commercial premise, industrial or warehouse space, hotels,
land acquisition, development and construction, etc.)
Exposure would also include non-fund based (NFB) limits.
iii Investments in Mortgage Backed Securities (MBS) and other
securitized exposures Nil Nil
a. Residential Nil Nil
b. Commercial Real Estate Nil Nil
b Indirect Exposure Nil Nil
Fund-based and non-fund based exposures on National Housing
Bank (NHB) and Housing Finance Companies (HFCs) Nil Nil
9. Details of Single Borrower (SGL), Group Borrower Limit (GBL) exceeded by the bank:
The bank had not exceeded the single borrower limit, group borrower limit fixed by the Board
10. Miscellaneous – Amount of provisions made for Income tax during the year.
(Rs in thousands)
Particulars March 2020 March 2019

Provision for Income Tax 276 92 88 45 00 00
11. Disclosure of Penalties imposed by RBI

The Bank has maintained CRR and SLR as per RBI Act 1934 and Banking Regulation Act 1949 and not defaulted
during the financial year under report.
12. Additional Disclosures as per Accounting Standards applicable to the Bank
(i) Related party disclosure
a) Related parties where control / significant influence exists or with whom transaction have taken place during
the year.
Sponsor Bank their Subsidiaries and Associates : State Bank of India
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Key Management Personnel

Shri K. Praveen Kumar, Chairman (From: 02.02.2019)
Shri G. Sukumar, General Manager –I
Shri Ch Sree Rama Somayaji, General Manager-II
Shri G. Nagaraju, General Manager – III
Shri P. Pardhasaradhi, General Manager – IV
Shri N. Venkata Ramana, General Manager – V (Chief Vigilance Officer)
Shri K. E. Subrahmanyamu, General Manager-VI
(ii) Particulars of related party accounts transactions:
The following is the summary of significant related party transactions: (Rs in thousands)
st st
Particulars 31 March 2020 31 March 2019
Refinance received from State Bank of India Nil Nil
Interest paid to SBI 4 07 46 68 81 42
Investments made with:
SBI - in the form of STDRs 188 21 95 260 80 96
SBI Fund Management Private Limited 82 95 00 Nil
Interest received from SBI 20 62 64 27 36 43
Profit on sale of Investments on SBI 3 74 23 70 05
Contributions to Gratuity Fund with SBI Life Insurance Co. Ltd Nil 4 78 49
Contributions to Group Leave Encashment Policy with
SBI Life Insurance Company Limited Nil 8 83 64
Contributions to Pension Trust Policy with SBI life Insurance
Company Limited on behalf of Trust 225 28 10 Nil
Current Account Balance with SBI 8 27 3 48 98
(iii) Particulars of Managerial Remuneration: (in Rupees)

st st
Particulars For the year 31 March 2020 For the year 31 March 2019
Shri K. Praveen Kumar, Chairman 28 64 648/- 3 95 359/-
Shri.V.Narasi Reddy, Chairman Nil 26 22 045/-
Shri.M. Satyanaryana, General Manager - I 8 46 811/- 20 65 660/-
Shri.T.V.Krishna Reddy, General Manager - II 4 28 486/- 21 59 052/-
Shri.G.Nagaraju, General Manager - III 23 12 772/- 22 53 732/-
Shri K. Ravi Kiran, General Manager - IV 4 10 287/- 20 82 712/-
Shri N. Venkata Ramana, General Manager - V 23 13 436/- 3 78 438/-
Shri P.Pardhasaradhi General Manager IV 19 30 755/- Nil
Shri Gouru Sukumar General Manager I 14 87 826/- Nil
Shri Ch Srirama Somayaji General Manager II 12 97 523/- Nil
Shri Eswara Subrahmanyamu Karri General Manager VI 11 32 315/- Nil
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13. Provisions on Rural Advances

(Rs in thousands)
a Opening balance in the Rural Advances Provision Account Nil 10 67 36
b The quantum of Rural Advances Provision made in the
accounting year Nil Nil
c i. Amount of Draw down made during the accounting year Nil Nil
ii. Provision written back to profit and Loss account Nil 10 67 36
iii. Total of Draw down Nil Nil
d Closing balance in the Rural Advances Provision Account Nil Nil
14. Disposal of Complaints:

A) Customer Complaints:
S.No Particulars IT NON IT TOTAL
a No. of complaints pending at the beginning of the year 19 7 26
b No. of complaints received during the year 2018-19 1,506 595 2,101
c Total Complaints 1,525 602 2,127
d No. of complaints redressed during the year 1,495 577 2,072
e No. of complaints pending at the end of the year 30 25 55*
* Out of 7, 6 complaints were closed during the 1st week of April 2019
B) Award passed by the Banking Ombudsman:
S.No Particulars Nos
a No. of complaints pending at the beginning of the year 05
b No. of complaints received during the year 2019-20 82
c Total Complaints 87
d No. of complaints redressed during the year 77
e No. of complaints pending at the end of the year 10*
f No. of awards passed by Banking Ombudsman 0
g No of awards implemented Not applicable
h No. of awards pending implementation Not applicable
15. Concentration of Deposits Advances Exposures and NPAs

1.Concentration of Deposits (Rs in Crores)
Total Deposits of Twenty largest depositors 2309.52
Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 12.49%
2. Concentration of Advances (Rs in Crores)

Total Advances of Twenty largest Borrowers 23.47
Percentage of Advances of twenty largest borrowers to Total Advances of the Bank 0.12%
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3. Concentration of Exposures (Rs in Crores)

Total Exposure of Twenty largest Borrowers/Customers 27.56
Percentage of Exposures to twenty largest Borrowers/Customers to Total Exposure of the
Bank on borrowers / customers 0.14%
4. Concentration of NPAs (Rs in Crores)

Total Exposure to top four NPA accounts 1.12 Cr, 0.56%
16. Sector Wise NPAs (Rs. in Cr)
Current Year (March 2020) Previous Year (March 2019)
Outstanding Gross NPAs Percentage of Outstanding Gross NPAs Percentage of

Sl. No Sector* Total Total
Gross NPAs to Gross NPAs to
Advances Total Advances Advances Total Advances
in that Sector in that Sector
A Priority Sector
1 Agriculture and 13154.83 130.92 1.00% 11169.16 109.54 0.98%
allied activities
2. Advances to
industries sector
eligible as 2263.34 43.80 1.94% 2012.68 37.94 1.89%
priority sector
lending
3 Services 71.59 5.98 8.35% 60.18 6.83 11.35%
4 Personal Loans 1886.77 9.72 0.52% 1971.49 27.08 1.37%
Sub-Total (A) 17376.53 190.42 1.10% 15213.51 181.39 1.19%
B Non-Priority
Sector
1 Agriculture and
allied activities - - - - - -
2 Industry - - - - - -
3 Services - - - - - -
4 Personal loans 1946.43 8.08 0.42% 1444.90 7.71 0.53%
Sub-Total (B) 1946.43 8.08 0.42% 1444.90 7.71 0.53%
Total (A+B) 19322.96 198.50 1.03% 16658.41 189.10 1.14%
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17. Movement of NPAs

Particulars Rs. in Crores
st
Gross NPAs as on 1 April 2019 (Opening Balance) 189.10
Additions (Fresh NPAs) during the year 426.90
Sub-Total (A) 616.00
Less:
(I) Upgradations 345.30
(ii) Recoveries (excluding recoveries made from upgraded accounts) 35.47
(iii) Write-Offs 36.73
Sub-Total (B) 417.50
st
Gross NPAs as on 31 March 2020 (Closing Balance) (A-B) 198.50
II. NOTES TO ACCOUNTS

1. Reorganization of Area of Operations of the Bank:
The Bank has been formed vide Notification dated 31st March 2006 issued by Department of Economic Affairs
(Banking Division), Ministry of Finance, Government of India. As per the said notification, the area of the operation
of the Bank is in eight districts of erstwhile State of Andhra Pradesh (Warangal, Medak, Khammam, Nalgonda,
Mahabubnagar, Srikakulam, Vizianagaram and Visakhapatnam districts).
Vide notification dated 20th October 2014 issued by the Department of Financial Services, Ministry of Finance,
Government of India the districts of Warangal, Medak, Khammam, Nalgonda, Mahabubnagar are omitted. Pending
finalization of the modalities for this notification and approvals from the competent authority, the operations of the
bank are being carried out in all the five districts. Financial statements as at the end of the reporting date include
assets and liabilities, income and expenses relating to the Bank in all the eight districts.
2. Classification of Assets (Advances) as on 31st March, 2020: (Rs in thousands)
Classification Gross Advances Net Advances
Standard Assets 19124 46 95 19064 87 03
Sub Standard Assets 81 38 93 0
Bad & Doubtful Assets 117 10 64 0
Total 19322 96 52 19064 87 03
Add: Provision on Sub-Standard And Doubtful Assets etc 198 49 57
Total Gross Advances 19263 36 60
During the year the Bank has fully provided provision on all NPA Accounts.
3. Inter Bank Participation Certificate (IBPC):
The Bank has entered into Risk sharing participation Contract with State Bank of India (Sponsor Bank) under Inter
Bank Participation Certificate (IBPC) and issued priority sector advances to the extent of Rs. 590 Crore on
28.06.2019 for the period of 179 days as cash pay-out and matured on 24.12.2019.During this financial year, the
Bank issued priority sector advances to an extent of Rs. 1100 Crore on 24.09.2019 for the period of 179 days as cash
pay-out to the HDFC Bank and matured on 26.03.2020 . Further, again during the year, the Bank issued priority
sector advances to an extent of Rs. 590 Crore on 26.12.2019 for the period of 180 days as cash pay-out with a
maturity date 23.06.2020 and also issued priority sector advances of Rs. 1300 Crore on 24.03.2020 for the period of
180 days as cash pay–out, with a maturity date 20.09.2020 to HDFC Bank.
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4. Priority Sector Lending Certificate (PSLC):

During the Financial year, the Bank has sold and purchased following priority sector advances on various dates and
earned profit of Rs.112.13 crores. The PSLC is valid upto 31.03.2020.
(Rs in 000s)
PSLC Sold PSLC Purchased Net Profit earned
Total Sold Premium Received Total Purchased Premium Paid during the Year
8800.00 127.925 6250.00 15.795 112.13
5. Bankers' Cheques:
The Unpaid Banker Cheques which were credited earlier years to P&L account aggregating to Rs.27,45 (in
thousands) furnished as contingent liability in Schedule 12.
6. Depositor Education and Awareness Fund (DEAF) Scheme:
Disclosure as required under Depositor Education And Awareness Fund Scheme – 2014 notified by the Reserve
Bank of India under DBOD No. DEAF Cell.BC.114/30.01.002/ 2013-14 dated 27th May 2014:
(Rs in 000s)
Sl No Particulars March 2020 March 2019
1 Opening Balance of Amount transferred to DEAF 1,43,08 1,34,98
2 Add: Amount transferred to DEAF during the Year 2019-20 1,98,00 8,33
3 Less: Amounts reimbursed by DEAF towards Claim 17 23
4 Closing balance of amounts transferred to DEAF 3,40,91 1,43,08
7. Fixed Assets:
The Bank is in possession of Land at various places in both Andhra Pradesh and Telangana states, to an extent of to
an extent of 9,432.26 square yards. Some of such lands were alienated by Government and some were donated by
individuals. The bank has also taken up constructions at some of the sites. All such expenditure/costs were
capitalized under lands and buildings. During 2018-19 an amount of Rs. 1,61,59 (thousand) was capitalized and an
amount of Rs. 8,75,61 (thousand) was in work in progress. During 2019-20, a further amount of Rs. 8,47,49
(thousand) was capitalized and work in progress came down to Rs. 12360 (thousand) from 85761(thousand).
8. Income Tax Matters:
Income Tax department has raised certain demands on the Bank, with regard to assessment of income of the Bank
and the tax payable thereon. The Bank is contesting demands raised by the Income Tax Department and pursuing
the same. Against the said tax demands based on the opinion obtained from the tax consultant, the Bank
recognized an amount aggregate to Rs. 53,58,29 (thousands) as Contingent Liabilities and are shown in Schedule 12
– “Contingent Liabilities - Claims against the Banks not acknowledged as debts”. Against the disputed claims, the
Bank paid an amount of Rs. 45,23,88 (thousands) and the same is being shown in Schedule 11 – “Other Assets -
Income Tax paid against Disputed Demand”. Bank is confident of resolving the dispute in its favour. Liability, if any,
will be charged to Profit and Loss account in the year of settlement of these disputes / claims.
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9. Data Purification and Asset Classification

The Bank is having a seamless system in its Core Banking Solution (CBS) for recognizing and identifying the non
performing assets in accordance with the extant guidelines. Further, the Bank has a system of manual verification
for ensuring the correctness of base data fed. Management intends to continue such manual verification to ensure
compliance of the Income Recognition and Asset Classification norms and other statutory compliances.
10. Fraud Cases:

Details of Fraud cases are as under:
(Rs in 000s)
Particulars 31 March 2020 31 March 2019
Provision at the beginning of the year 6.15 80.40
Less: Written off during the year Nil 15,89
Add: Additional provision created during the year Nil Nil
Less : Provision reversed (written back) during the year 68 58,36
Provision as at the year end 5.47 6,15
Number of fraud cases at the year end 25 23
11. The figures mentioned in Balance Sheet, Profit & Loss Account and Schedules 1 to 16 have been rounded off to the
nearest thousand rupees. Previous Year's figures have been regrouped /reclassified/recast wherever necessary to
confirm the current year classification.
12. Note on COVID-19:
The onset and rapid propagation of COVID-19 has caused disruptions in the banking operations, restrictions on
travel, meetings and access to client locations and other practical diﬃculties. There is a high level of uncertainty
about the duration of the lockdown and the nature of the restrictions, limitations, regulatory requirements,
existing business environment, materiality and their possible impact on the banking operations. In this regard
certain regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by
disruptions and to ensure the continuity of viable businesses. In assessing whether the going concern assumption is
appropriate, the management has considered all available information about the future, which is at least, but is not
limited to, twelve months from the end of the reporting period, the anticipated government support and provisions
held by the bank. In view of these matters the management is of the opinion Financial statements are normally
prepared on the assumption that the bank is a going concern and will continue in operation for the foreseeable
future.
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Disclosures as required vide Circular No. RBI/2019-20/220 DOR.No.BP.BC.63/21.04.048/2019-20

April 17, 2020:
Particulars 31.03.2020 31.03.2019

Respective amounts in SMA/overdue categories, where the
moratorium/deferment was extended, in terms of paragraph
2 and 3; 1,97,640.75 Nil
Respective amount where asset classification benefits is extended. 1,97,640.75 Nil
Provisions made during the Q4FY2020 and Q1FY2021 in terms of
paragraph 5; 9,882.04 Nil
Provisions adjusted during the respective accounting periods
against slippages and the residual provisions in terms of
paragraph 6. Nil Nil

For Rao & Kumar
FR No: 003089S
M No : 229988


Place: Warangal
th
Date: 10 May 2020
96

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we are with you!

Annual Report 2019-20

Empowering Rural Lives

we are with you!

15 Annual Report 2019-20

With Best Compliments from

Inside the Report

2. Geographical Presence & Regional Offices 04

5. Head of Departments & Regional Managers 07

6. Our Mentors, Regulators / Supervisors 08

9. Key Performance Indicators 12

10. Board of Directors Report 17

11. Auditor's Report 59

12. Balance Sheet, Profit & Loss 65

Vision we are with you!

Be the preferred Bank of Rural India for development and

Andhra Pradesh Grameena Vikas Bank

(K. Praveen Kumar)

Geographical presence & Regional Offices

Regions in Andhra Pradesh

Shri K. Praveen Kumar

Nominees of Central Government under

Nominee of Reserve Bank of India under

Nominees of State Bank of India

Nominees of State Government under

Shri KVV Satyanarayana, IRAS

Shri K. Praveen Kumar

Shri G.Sukumar Shri Ch.Sree Rama Somayaji Shri G. Nagaraju

Shri P.Pardhasaradhi Shri N.V. Ramana Shri K.E Subrahmanyamu

Shri Rajnish Kumar

Shri Dinesh Khara Shri SP Singh

Our Regulators / Supervisors

Shri Vijay Kumar Shri S. Selvaraj

Total Business 16.15%

Key Performance Indicators Rs. in 000's

21 Salary 2170109 2353771 2668873

Total Business (Rs in Crore) Deposits (Rs in Crore)

Advances (Rs in Crore) Net Profit (Rs in Crore)

Growth Rate Growth Rate

Growth Rate Growth Rate

Awards received during 2019-20

Project Finance by Bank

Board of Directors Report

Lighting up the lives of rural people

The Bank's total business has registered a growth of

FY 2019 to Rs. 1390.47 Crore in FY 2020. The Interest

expended on deposits increased by 18.34% from Rs. 851.29

Crore in FY 2019 to Rs. 1007.44 Crore in FY2020. Bank has paid

Rs. 383.03 Crore towards interest on Borrowings (refinance

from NABARD, NHB and MUDRA and Intrest paid on SBI /

HDFC OD accounts) during the year compared to Rs. 471.65

Total Interest Income (Rs. in Crore)

Net Interest Income

Net interest income increased by 15.92% from Rs. 1046.44

income increased from Rs. 2369.38 Crore in FY2019 to

Interest Expenditure Operating Expenditure

Interest Expenditure Operating expenditure has increased by Rs. 33.72 Crore

as compared to Rs. 112.04 Crore in FY 2019. Banks net profit

42.36% 202 223

Balance sheet size Capital Adequacy Ratio

Investment Policy: instance of income leakage from Non-SLR investments

Inauguration of Asset Management HUB at our Daba gardens branch

Total credit to agriculture and allied activities constitutes

Credit to Agriculture We have issued 968858 KCCs as on March, 2020 with an