WHAT IS BANK

A bank is a financial institution that accepts deposits from the public and creates a demand deposit while
simultaneously making loans.[1] Lending activities can be directly performed by the bank or indirectly
through capital markets.

Because banks play an important role in financial stability and the economy of a country, most jurisdictions
exercise a high degree of regulation over banks. Most countries have institutionalised a system known
as fractional reserve banking, under which banks hold liquid assets equal to only a portion of their current
liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject
to minimum capital requirements based on an international set of capital standards, the Basel Accords.

Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance
Italy but in many ways functioned as a continuation of ideas and concepts of credit and lending that had their
roots in the ancient world. In the history of banking, a number of banking dynasties – notably, the Medicis,
the Fuggers, the Welsers, the Berenbergs, and the Rothschilds – have played a central role over many
centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), while the
oldest existing merchant bank is Berenberg Bank (founded in 1590).

What Is Financial Statement Analysis?

Financial statement analysis is the process of analyzing a company's financial statements for decision-making

purposes. External stakeholders use it to understand the overall health of an organization as well as to evaluate
financial performance and business value. Internal constituents use it as a monitoring tool for managing the finances.

KEY TAKEAWAYS
 Financial statement analysis is used by internal and external stakeholders to evaluate business
performance and value.
 Financial accounting calls for all companies to create a balance sheet, income statement, and cash
flow statement which form the basis for financial statement analysis.

 Horizontal, vertical, and ratio analysis are three techniques analysts use when analyzing financial
statements.

How to Analyze Financial Statements

The financial statements of a company record important financial data on every aspect of a
business’s activities. As such, they can be evaluated on the basis of past, current, and projected
performance.
In general, financial statements are centered around generally accepted accounting
principles (GAAP) in the U.S. These principles require a company to create and maintain three main
 financial statements: the balance sheet, the income statement, and the cash flow statement. Public
companies have stricter standards for financial statement reporting. Public companies must follow
GAAP, which requires accrual accounting. 1

 Private companies have greater flexibility in their financial statement preparation and also have the option
to use either accrual or cash accounting.

Several techniques are commonly used as part of financial statement analysis. Three of the most important
techniques include horizontal analysis, vertical analysis, and ratio analysis. Horizontal analysis
compares data horizontally, by analyzing values of line items across two or more years. Vertical analysis
looks at the vertical effects line items have on other parts of the business and also the business’s
proportions. Ratio analysis uses important ratio metrics to calculate statistical relationships.

Types of Financial Statements

Companies use the balance sheet, income statement, and cash flow statement to manage the operations of
their business and also to provide transparency to their stakeholders. All three statements are interconnected
and create different views of a company’s activities and performance.

Balance Sheet

The balance sheet is a report of a company's financial worth in terms of book value. It is broken into three
parts to include a company’s assets, liabilities, and shareholders' equity. Short-term assets such as cash and
accounts receivable can tell a lot about a company’s operational efficiency; liabilities include the company's
expense arrangements and the debt capital it is paying off; and shareholder’s equity includes details on
equity capital investments and retained earnings from periodic net income. The balance sheet must balance
assets and liabilities to equal shareholder’s equity. This figure is considered a company’s book value and
serves as an important performance metric that increases or decreases with the financial activities of a
company.

Income Statement

The income statement breaks down the revenue a company earns against the expenses involved in its
business to provide a bottom line, meaning the net profit or loss. The income statement is broken into three
parts that help to analyze business efficiency at three different points. It begins with revenue and the direct
costs associated with revenue to identify gross profit. It then moves to operating profit, which subtracts
indirect expenses such as marketing costs, general costs, and depreciation. Finally, after deducting interest
and taxes, the net income is reached.

Basic analysis of the income statement usually involves the calculation of gross profit margin, operating
profit margin, and net profit margin, which each divide profit by revenue. Profit margin helps to show
where company costs are low or high at different points of the operations.
Cash Flow Statement

The cash flow statement provides an overview of the company's cash flows from operating activities,
investing activities, and financing activities. Net income is carried over to the cash flow statement where it
is included as the top line item for operating activities. Like its title, investing activities include cash flows
involved with firm wide investments. The financing activities section includes cash flow from both debt
and equity financing. The bottom line shows how much cash a company has available.

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide
financial services, such as wealth management, currency exchange, and safe deposit boxes.

Characteristics/features of a bank are;

1. Dealing in Money
2. Individual/Firm/Company

3. Acceptance of Deposit

4. Giving Advances

5. Payment and Withdrawal

6. Agency and Utility Services

7. Profit and Service Orientation

8. Ever-increasing

9. Connecting Link

10. Banking Business

11. Name Identity

The main characteristics/ features of a bank are discussed below:-

1. Dealing in Money

The bank is a financial institution which deals with other people’s money, i.e., the money given by
depositors.

2. Individual/Firm/Company

A bank may be a person, firm, or company. A banking company means a company that is in the business of
banking.
3. Acceptance of Deposit

A bank accepts money from people in deposits that are usually repayable on demand or after the expiry of a
fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its
customers.

4. Giving Advances

A bank lends out the money in loans to those who require it for different purposes.

5. Payment and Withdrawal

A bank provides an easy payment and withdrawal facility to its customers in checks and drafts. It also brings
bank money into circulation. This money is in the form of checks, drafts, etc.

6. Agency and Utility Services

A bank provides various banking facilities to its customers. They include general utility services and agency
services.

7. Profit and Service Orientation

A bank is a profit-seeking institution with having service-oriented approach.

8. Ever-increasing

Functions Banking is an evolutionary concept. There is continuous expansion and diversification as regards
the functions, services, and activities of a bank.

9. Connecting Link

A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those
who have surplus money and give the same to those who require money.

10. Banking Business

A bank’s main activity should be to do banking business that should not be subsidiary to any other business.

11. Name Identity

A bank should always add the word “bank” to its name to enable people to know that it is a bank and deals
in money.
 Functions of Banks

The functions of banks are briefly highlighted in the following diagram or chart.

A. Primary Functions of Banks.

1. Accepting Deposits.

1. Saving Deposits.
2. Fixed Deposits.

3. Current Deposits.

4. Recurring Deposits.

2. Granting of Loans and Advances.

1. Overdraft
2. Cash Credits

3. Loans

4. Discounting of Bill of Exchange

B. Secondary Functions of Banks.

1. Agency Functions.

1. Transfer of Funds.
2. Collection of checks.

3. Periodic Payments.

4. Portfolio Management.

5. Periodic Collections.

6. Other Agency Functions.

2 .General Utility Functions.

1. Issue of Drafts, Letter of Credits, etc.

2. Locker Facility.

3. Underwriting of Shares.

4. Dealing in Foreign Exchange.

5. Project Reports.

6. Social Welfare Programs.

7. Other Utility Functions.

A. Primary Functions of Banks

The primary functions of a bank are also known as banking functions. They are the main functions of a bank.
These primary functions of banks are explained below.

1. Accepting Deposits

The bank collects deposits from the public. These deposits can be of different types, such as

 Saving Deposits: This type of deposit encourages saving habits among the public. The rate of
interest is low. At present, it is about 4% p.a.
 Fixed Deposits: The lump sum amount is deposited at one time for a specific period. A higher rate of
interest is paid.

 Current Deposits: This type of account is operated by businessmen. Withdrawals are freely allowed.
No interest is paid.
  Recurring Deposits: This type of account is operated by salaried persons and petty traders.
Withdrawals are permitted only after the expiry of a certain period. A higher rate of interest is paid.

2. Granting of Loans and Advances

The bank advances loans to the business community and other members of the public. The rate charged is
higher than what it pays on deposits. The types of bank loans and advances are:

 Overdraft: This type of advance is given to current account holders. It is sanctioned to business

people and firms. An overdraft facility is granted against collateral security.
 Cash Credits: The client is allowed cash credit up to a specific limit fixed in advance. The cash
credit is given against the security of tangible assets and or guarantees. The advance is given for a
longer period, and a larger loan amount is sanctioned than that of overdraft.

 Loans: It is normal for the short term, say a period of one year, or medium-term, says a period of
five years. Nowadays, banks do lend money for the long term. Loans are normally secured against
tangible assets of the company.

i. Discounting of the bill of exchange: The bank can advance money by discounting or by purchasing
bills of exchange, both domestic and foreign bills. The bill is presented to the drawee or acceptor of the bill
on maturity, and the amount is collected.

B. Secondary Functions of Banks

The bank performs some secondary functions, also called non-banking functions. These important
secondary’ functions of banks are explained below.

1. Agency Functions

The bank acts as an agent of its customers. The bank performs several agency functions, which includes:-

 Transfer of Funds: The bank transfers funds from one branch to another or from one place to
another.
 Collection of checks: The bank collects the money of the checks through the clearing section of its
customers. The bank also collects money from the bills of exchange.

 Periodic Payments: On standing instructions of the client, the bank makes periodic payments
regarding electricity bills, rent, etc.

 Portfolio Management: The banks also undertake to purchase and sell the shares and debentures on
behalf of the clients and accordingly debits or credits the account. This facility is called portfolio
management.
  Periodic Collections: The bank collects salary, pension, dividend, and other periodic collections on
behalf of the client.

 Other Agency Functions: They act as trustees, executors, advisers, and administrators on behalf of
their clients. They act as representatives of clients to deal with other banks and institutions.

2. General Utility Functions

The bank also performs general utility functions, such as,

 Issue of Drafts and Letter of Credits: Banks issue drafts for transferring money from one place to
another. It also issues letters of credit, especially in the case of import trade. It also issues travelers’
checks.
 Locker Facility: The bank provides a locker facility for the safe custody of valuable documents,
gold ornaments, and other valuables.

 Underwriting of Shares: The bank underwrites shares and debentures through its merchant banking
division.

 Dealing in Foreign Exchange: The commercial banks are allowed by.RBI to deal in foreign
exchange.

 Project Reports: The bank may also undertake to prepare project reports on behalf of its clients.

 Social Welfare Programs: It undertakes social welfare programs, such as adult literacy programs,
public welfare campaigns, etc.

 Other Utility Functions: It acts as a referee to the financial standing of customers. It collects
creditworthiness information about clients of its customers. It provides market information to its
customers, etc. It provides travelers’ check facilities.

UCO

1974 - The Company was incorporated on 15th of February.

1992 - During the year the Bank opened 11 branches in urban and metropolitan areas
to take the total number of branches in India to 1783 at the end of the year.
- With a view to cater to the needs of different customer groups the Bank introduced
several innovative deposit schemes viz. Lakhpati Scheme, Money Multiplier Schemes,
Money Back Recurring Deposit Scheme and Two-Way Deposit Scheme.
- During the year, the Bank implemented an innovative scheme, namely
Planning for Development of Villages (PDV) through 22 selected branches of the
Bank.
- During the year, the Bank made suitable modifications in its Agricultural Credit Card
namely UCO Kishan Patra to make it more popular among the farmers.
- The Bank also participated in the development of women and children in rural areas
under the DWCRA scheme.
- The Guntur branch in Andhra Pradesh was upgraded to an 'A' category branch
with a view to capture the business of tobacco exports.
- 56 branches across the country were upgraded to 'B' category foreign exchange
branches.
- Teller system was introduced in 16 more branches taking the total number of branches
with teller facility to 84.
- At the branch level 130 ALPMs have been installed in 35 branches of which 116 have

been operationalised.
- The Union Finance Minister honoured the Bank for its contribution to the first All
India Bank Official Language Conference and the Union Minister of State for
Textiles awarded a Certificate of Merit to the Bank for the exhibition arranged on
the occasion of the third All India Bank Official Language Conference.
- Shri K Margabanthu joined the Bank as Chairman & Managing Director on 11th
September, 1991.
- Shri G K Udeshi, the RBI nominee on the Board ceased to be a Director from 1st
September, 1991.
- Prime Minister's Rozgar Yojana was launched on 2nd October.
1994 - A new scheme under the name of FCNR (Banks) Scheme was introduced with
the exchange risk being borne by the banks.
- The Bank has taken several steps towards improving recovery and reduction in
NPA, lowering of the cost of funds, boosting non-interest income, containment of
operating expenses etc. in order to improve the financial position.
- Five new branches were opened during the year, of which two were urban branches,
two semi- urban and one rural.
- The Bank was nominated as the principal financing agency in six districts namely,

Howrah, Hooghly, Burdwan, Birbhum, Jaipur and Jalandhar.

- During the year a new forum namely State Level Export Promotion Committee (SLEPC)
was constituted in each state under the aegis of the SLBC.
- During the year a compressive booklet was published incorporating all the
salient features of the various non-resident deposit schemes.
- During the year inter-cadre promotion for workmen staff and inter-scale / grade
promotions for officers were effected, thereby enhancing the level of motivation
of the staff.
- Shri Dipak Rudra, l.A.S. joined the Bank on 23rd July, 1993 as Chairman &
Managing Director.
1995 - During the year, the Bank opened 14 new branches comprising
six at semi urban centres, two in urban areas and six in metropolitan cities.
- During the year, the Bank opened several specialised branches viz. 6 recovery
branches and 6 SSI branches, the later being created by converting 6 existing
branches into SSI branches.
- During the year the Bank merged 17 non viable branches with other branches.
- The Bank opened three new extension countres and closed down four extension
counters during the year bringing the total No. of extension counters to 138.
- The Bank was nominated as the principal financing agency in six districts namely,
Howrah, Hooghly, Burdwan, Birbhum, Jaipur and Jalandhar.
- The Development Assistance Plan (DAP) which was introduced by the GOI in the
year 1994-95 made a selection of 49 RRBs out of 196 RRBs based on their financial
viability which included 5 RRBs sponsored by the Bank.
- Specialised Recovery branches were opened at New Delhi, Calcutta, Chennai,
Bangalore Jaipur and Bhubaneswar.
- An important change in the mode of calculation of depreciation was introduced
by Reserve Bank of India during the year by increasing the YTM for the dated
securities included in the current category.
-The Bank opened four more currency chests during the year and now 59 chests
are in operation through out the country.
- The Customer Service Committees have been set up at 1724 branches out of
total 1786 branches as at 31.3.1995.
- The Bank was awarded Rajbhasha Shield which was given away by the
Governor of Himachal Pradesh. The employees of the Bank won several
prizes a the Town Official Language Implementation Committee level.
- ALPMs have been installed in 55 branches at the end of March 1995. The Bank
proposes to install ALPMs in about 40 more branches in the current year.
- 25 PCs have been installed in different departments of the Head Office.
14 Zonal Centres have been equipped with mini computers.
- Shri YK Sharma, representing the Workmen staff is the new Director
w.e.f. 9th May 1995. Shri MK Bandopadhyaya has become the new RBI
nominee Director w.e.f. 29th May 1995.
1996 - During the year, the Bank opened ten new branches comprising nine in
semi-urban centres and one in a metropolitan Centre. The Bank also opened
one extension counter during the year, taking the total number of extension
counters to 137 as at end March.
- The Bank closed the Liecester branch in UK and the total number of
branches at overseas centres came down to six comprising one branch
in UK, two in Hongkong and three in Singapore..
- During the year the Bank launched a new deposit scheme 'UCO LAKSMI
YOJANA' which provides for variable instalments in a recurring deposit
scheme.
- The Bank has undertaken the implementation of the Planning for Development
of Villages (PDV) programme in the Cuttack PDV region of Orissa and
Dharamsala PDV region of Himachal Pradesh.
- The Bank has also implemented the programme of Linking Self Help Groups
(SHGs) with the Bank as per the directives of the Reserve Bank.
- The Bank is also the Convenor of the State Level Bankers' Committee in Orissa
and Himachal Pradesh.
- The Bank has identified Colaba and Andheri West Branches in Mumbai
for installation of ATMs under the Shared Payment Network System of
the IBA.
- The Bank executed a Memorandum of Understanding (MOU) with the Trade
Unions of the Bank as a sequel to which Business Development Committees
(BDCs) comprising representatives of the Management and the Unions were
formed at Head Office and Zonal Office levels.
2000 - UCO Bank has introduced a `Special Settlement' scheme for negotiating
settlement of the bank's dues classified as non-performing assets.
- Mr. V. P. Shetty was appointed as Chairman and Managing Director of
Calcutta-based Uco Bank for 5 years, with effect from October 6.
- UCO Bank's executive director VP Shetty, has been appointed as the chairman
and managing director of the bank, with effect from 6th October.
- UCO Bank has introduced seven-day banking facility at 17 suburban branches in
Mumbai and 12 hour banking services at the Khar branch.
- V Sridhar has been appointed the new Executive Director of UCO Bank with effect
from December 15.
2001 - UCO Bank launched a private placement of tier-II bonds to raise up to Rs 100 crore.
- UCO Bank has launched a new scheme for the trading community, Christened
UCO Trader Scheme.
2003
-Comes out with Initial Public Offering (IPO) of 20-cr equity shares of Rs 10 each for cash at a premium Rs
2 per share aggregating Rs 240 crore
- UCO Bank along with Central Bank of India (CBI) , Indian Overseas Bank (IOB), Canara Bank and Union
Bank of India (UBI) have formed an alliance to launch `Cash Online' ATM network
2004
-UCO Bank unveils new branch in Kottayam
- Raised Rs.300 crore from the capital market in its private placement issue of unsecured redeemable non-
convertible subordinated bonds.
-UCO Bank has launched a new scheme to enable rural poor avail easy loans for receiving LPG connections
on World Environment Day.
2005
-Western Union forges alliance with UCO Bank
-Crisil signs agreement with Uco Bank for providing ratings for SSIs
-UCO unveils new deposit scheme
-UCO Bank adopts H-P for core banking solution
2006
-UCO Bank launches retail sales force
-UCO Bank mulls to enter into derivatives market
-Uco comes out with maiden hybrid tier-II bond
2007
-UCO Bank Ltd has appointed Shri. P L Mittal, Chartered Accountant, Chandigarh as part time non official
Director in the Board of the Bank under Chartered Accountant Category with effect from January 02, 2007.
-UCO Bank Ltd has appointed Shri. N P Sinha as Director in the Board of the Bank with effect from
February 27, 2007.
-UCO Bank Ltd has appointed Shri. S A Bhat Executive Director as Chairman & Managing Director of
Indian Overseas Bank.
- UCO Bank names S K Goel as CMD.
2008
-UCO Bank has informed that Shri. Samir Kumar Sinha, Deputy Secretary, Department of Financial
Services, Government of India has been appointed as a Director of the Bank vide Notification dated June 10,
2008.
- UCO Bank has appointed Shri. Jai Dev Gupta as part-time non-official Director on the Board of Directors
of the Bank w.e.f. July 04, 2008 vide notification dated July 04, 2008.
2009
- UCO Bank has informed BSE that as per notification of Government of India, Ministry of Finance dated
February 24, 2009 Shri. Nirmal Khatri has been appointed as part-time Non-Official Director on the Board
for a period of three years from February 25, 2009.
2010
-UCO Bank has announced the launch of a 'Festival Bonanza Offer' for borrowers.
-Toyota Kirloskar Motor Pvt. Ltd (TKM) has signed an agreement with the UCO Bank to extend auto retail
finance to its prospective customers.
-UCO Bank, Kolkata zone, set up two new ATMs at its Jodhpur Park and Kasba branches to ensure a better
cash delivery system to the customers.
2011
-UCO Bank has collaborated with Religare Securities for offering online trading to its customers,
which is a part expansion of the product bouquet.
-UCO Bank launched its small and medium enterprises (SME) loan hub in Bangalore to increase lending to
sector.
2012
- UCO Bankhas recommended dividend of Rs. 3/- per share on the face value of Rs. 10/- each for the year.
-UCO TOWER, Bank's internal magazine has been awarded the Certificate of Merit at 'ICE Awards' (In-
House Communication Excellence), 2012 initiated by Shailaja Nair Foundation, Mumbai.
2013
-Ministry of MSME, Govt. of India awarded National Award to UCO Bank for implementation of PMEGP
scheme in the North-East Zone for the year 2012-13.
-UCO Bank received SKOCH RENAISSANCE AWARD 2013 for Development.
-Ministry of Rural Development, Govt. of India awarded UCO Bank as 3rd Best Bank for nurturing the
RSETI movement in the country for the year 2012-13.
-UCO Bank received Global Sustainability Award from World CSR Congress under the category
"Outstanding Social Impact".
2014
-UCO Bank has been awarded 1st Prize in the category of Best Bank for operational performance for 2014.
-UCO Bank received prestigious SKOCH AWARD for Excellence in Banking in Financial Inclusion and
Deeping 2014.
-UCO Bank had been awarded First Prize for Highest average loan to SHGs in West Bengal State during the
year 2013-14 under Commercial Bank category.
2016
-UCO Bank has raised Rs 270.59 crore by issuing over 7 crore shares to LIC on preferential basis, reported
PTI.

BANK OF MAHARASHTRA

Bank of Maharashtra is a public sector bank in Maharashtra which offers personal banking cash management
retail loans and other financial services. Their services include deposits savings/current bank account vehicle
loans personal loans retail trade finance global banking lending to priority sector and small scale sector
foreign exchange and export finance corporate loans and equipment loans. As on 31 March 2020 the bank's
total branch network comprised of 1833 branches spread across all the States and 4 union territories. The
branch network includes specialized branches in the area of Foreign Exchange Government business
Treasury and International Banking Industrial Finance MSME and Hi-tech Agriculture Pension Payment etc.
The bank's ATM network stood at 1851 as on 31 March 2020.The Bank has one subsidiary namely The
Maharashtra Executor & Trustee Company Pvt Ltd which undertakes management of public/ private trusts
and administration/ execution of Will. They also sponsored three Regional Rural Banks namely Aurangabad
Jalna Gramin Bank Thane Gramin Bank and Marathwada Gramin Bank with head office at Aurangabad
Thane and Nanded respectively.Bank of Maharashtra was incorporated on September 16 1935 and started
their business on February 8 1936. In April 10 1946 The Maharashtra Executor & Trustee Company Pvt Ltd
was incorporated as a wholly owned subsidiary of the Bank. In July 1969 Bank of Maharashtra was
nationalized along with 13 other banks. After nationalization the Bank expanded rapidly. In the year 1998
the Bank attainted the autonomous status which helped the Bank in providing more and more services with
simplified procedures without intervention of Government. In the year 2000 they incorporated Magic
eMoney Ltd (MeM) a joint venture of Bank of Maharashtra Dena Bank NextStep Infotech P. Ltd. (NSIPL)
and Magic Software Enterprises (MSE) Israel continued to undertake departmental projects.During the year
2003-04 the Bank came with their initial public offer of 10 crore shares of Rs 10/- each at a premium of Rs
13/- amounting to Rs 230 crore. The issue received overwhelming response and was over subscribed by
more than 11 times. Also they opened 34 new branches and upgraded 10 extension counters into full-fledged
branches during the year.During the year 2004-05 the Bank opened 14 new branches 2 extension counters
and up-graded 1 extension counter into a full-fledged branch. Also they opened Holiday Home at Shirdi in
addition to 5 existing Holiday Homes at different places. The Bank acquired a stake of 9% in Global Trade
Finance Pvt Ltd a non-banking finance company promoted by the EXIM Bank.In January 2006 the Bank
signed a MoU with Life Insurance Corporation of India for distribution of their insurance products. Also
they launched a scheme of money transfer service for Non Resident Indians and other foreign account
customers using the Western Union Money Transfer Services provided by Western Union Financial Services
Inc. For this regard the Bank has entered into agreement with Weizmann Forex Ltd the primary agent of
Western Union Financial Services Inc. During the year 2006-07 the Bank opened 29 new branches and
upgraded 16 extension counters into full-fledged branches. They expanded the ATM Network from 145
ATMs to 302 ATMs during the year and entered into collaboration with VISA for issuance of Debit cards.
The Bank commissioned their own Data Center at Pune and Disaster Recovery (DR) site at Hyderabad. Also
they established six IT Labs at Delhi Kolkata Chennai Hyderabad Bangalore and Lucknow in order to take
care of the massive training requirement for the CBS project. The Bank launched new schemes like
Mahalaxmi Term Deposit Scheme (3 years term deposit scheme) Mahadeep Scheme (Financing of Solar
Water Heating System) Insta Remit Scheme (RTGS scheme for instant fund transfer) etc during the year. In
May 2006 they entered into tie up with United Insurance Company Ltd for distribution of their non-life
insurance products.During the year 2007-08 the Bank also launched two group insurance schemes namely
Maha Suraksha Deposit Scheme for all types of deposit account holders and Maha Grih Suraksha for home
loan borrowers. Also they entered into distribution agreement with 15 select Asset Management Companies
during the year. They opened 20 new branches upgraded 10-extension counters into full-fledged branches.
They also opened 3 Currency Chests during the year. In March 2008 the two Regional Rural Banks namely
Aurangabad Jalna Gramin Bank and Thane Gramin Bank were amalgamated into one unit in the name of
Maharashtra Godavari Gramin Bank with head office at Aurangabad and having area of operation in nine
districts of Maharashtra. As at March 31 2008 the total branch network comprised of 1375 branches and
three extensions counters spread over 22 states and two union territories. During the financial year ended 31
March 2010 Bank of Maharashtra crossed the milestone business level of Rs 100000 crore. During the year
the bank set up currency futures desk at its dealing room and started proprietary trading in MCX-SX
Exchange. Straight-through-Processing (STP) of Merchant Transactions was implemented in all 28
designated Fex Centres during the year.During the year under review Bank of Maharashtra opened 33 new
branches. The bank set up three retail credit hubs one each at Pune Mumbai and Delhi to facilitate robust and
qualitative growth in retail credit with special focus on housing loans. Five Asset Recovery branches were
also set up one each at Pune Mumbai Nagpur Kolkata and Aurangabad to provide greater thrust to the legal
and administrative measures for recovery of NPAs.The year 2009-2010 was a landmark year in the chronicle
of the bank as far as technology implementation and up scaling are concerned. The bank completed the
process of networking of all the 1453 branches and bringing them under Centralized Solution on 2 February
2010 thereby achieving 100% Core Banking Solution (CBS).During the year under review the Mobile
Banking product Maha Mobile was launched offering services like balance enquiry view last three
transactions cheque status enquiry request for cheque book / statement of accounts change MPIN and intra
bank fund transfer up to Rs.50000 per day.During the financial year ended 31 March 2014 Bank of
Maharashtra received equity share capital amounting to Rs. 800 crore (including share premium of Rs.
622.38 crore) from Government of India (GOI) through allotment of shares on preferential basis. With
capital infusion the share holding of GOI in equity share capital increased to 85.21% as on 31 March
2014.During the year the bank opened 162 new branches the largest number of branches opened by the bank
in a financial year since inception.The year 2013-2014 was a milestone year for the bank as far as
technology implementation and up scaling is concerned. During the year bank expanded its ATM Network
from 692 ATMs to 1827 ATMs covering nearly all the 1890 branches of the bank. The implementation of
banks own ATM Switch commenced during the year and was implemented live from 8 May 2014. Bank of
Maharashtra has its own Corporate Network 'MAHANET' with all Branches Zonal Offices Training
Colleges / Centers and Head Office interconnected and working under Core Banking Platform. Its robust &
secure Network Technology Architecture ensures seamless services to the customers. During the year 2013-
14 the process of migration of the network to highly reliable Multi Protocol Label Switching (MPLS)-VPN
(Virtual Private Network) based architecture was completed.In July 2013 Bank of Maharashtra took a novel
step by forming a new department by the name 'Department of Strategic Initiatives'. The project is named
'Utkarsha' and is a business transformation programme. The bank has engaged EY as consultants for the
transformation. A team of 12 officers headed by an AGM is also formed to undertake this project. Time lines
and the scope of work are defined and the expected time for the project completion is 18 months. The
objective of Utkarsha is to draw a strategic roadmap and align bank's operating model to emerge as a more
competitive agile and efficient player. Project 'Utkarsha' encompasses six core elements namely Branch
Transformation Centralization and Business Process Re-engineering Sales Enablement for retail and SME
loans Alternate Channels Human Capital and Capital Efficiency.With a view to meet the credit requirement
of its customers Bank of Maharashtra launched a new retail loan product 'Mahabank Gold Loan Scheme'
with effect from 26 September 2014. In January 2015 Bank of Maharashtra launched New Gen Mobile
Banking Application `Maha Mobile'.During the financial year ended 31 Mach 2016 Bank of Maharashtra set
up Central Processing Cells at all the 33 zones. The centralized processing is expected to improve quality of
appraisal and reduce undue delays in credit delivery mechanism.In addition to GRAS (Govt. Receipts
Accounting System- e-payment of taxes) through all its branches in the state of Maharashtra the bank
introduced e-SBTR (electronic Secured Bank & Treasury Receipts). In order to extend additional credit
support to its standard housing loan borrowers Bank of Maharashtra launched 'Mahabank Top Up loan
Scheme' with effect from 26 February 2016. Under this scheme credit is extended for repair / renovation /
furnishing of house children's education Marriage of Children Medical treatment buying a vehicle or hi-tech
gadgets etc.During the year under review Bank of Maharashtra issued 105150787 equity shares amounting
to Rs 394 crore (including share premium) to Government of India (GoI) on preferential allotment basis.
Consequent upon the capital raised during the year as above the share holding of GOI in equity share capital
stood at 81.61%.During the year Bank of Maharashtra opened 15 new branches. CBS Hardware
Augmentation Project covering DC & DR was undertaken & successfully completed during the year to take
care of increasing transactions load and to ensure smooth functioning of CBS system at field level. E-
Gadgets implemented in a big way during the year with commissioning of Self Update Pass Book Printers
Queue Management Solution & Bunch Note Acceptor Machines at various locations across the bank.During
the financial year ended 31 Mach 2017 Bank of Maharashtra introduced One Time Settlement (OTS)
Schemes viz. 'Mahabank Rahat Yoiana' for NPAs with Ledger Balance up to Rs.25.00 lakhs. During the year
2016-17 another special Suo Motu OTS Scheme (Viz. 'Mahabank Karimukti Yoiana') was introduced for
recovery in Regular Written Off (RWO) a/cs up to Rs 25 lakhs.The bank added two new partners namely
M/s Future Generali (Non-Life Insurance Company) and M/s Cigna TTK (Standalone Health Insurance
Company) under Bancassurance in the month of February 2017.During the March 2017 quarter Government
of India vide its letter dated 16 March 2017 infused Rs 300.00 crore by way of preferential allotment of
equity shares and the amount was maintained under Share application money pending for allotment till the
allotment of equity shares done. However RBI has allowed treating share application money pending for
allotment as CET1 capital for computation of CRAR.The bank successfully initiated/launched various Major
IT Projects during 2016-2017. During the Year 2016-17 upgrade of Contact Center Operations including
Integrated Voice Response System (IVRS) was successfully done & system is made operational. The bank
launched `MahaUPI' its UPI mobile application from 26 August 2016. The bank started the Paper-less ATM-
RePIN facility (Green PIN) for ATM Card through its ATM Machines. During the year under review the
bank launched New Internet Banking Portal for Retail Customers.Bank of Maharashtra was placed under
Prompt Corrective Action (PCA) by RBI in June 2017 in view of its high net NPA. Bank therefore had
prepared Monitorable Action Plan for FY 17-18 to improve its position. During the year under review the
bank introduced One Time Settlement (OTS) Schemes. 'Ghar Ghar Dastak Yojana' (GGDY) was introduced
for Small NPA borrowers up to Rs 10 lakhs. MahaMukti - 2017-18 (A) and 'MahaMukti - 2017-18 (B)'
schemes were introduced for NPAs having ledger balance above Rs 10 lakhs up to Rs 1 crore and ledger
balance above Rs 1 crore up to Rs 25 crore respectively. The bank introduced a scheme for one time
settlement of Specified NPA accounts under 'Chhatrapati Shivaji Maharaj Shetkari Sanman Yojana 2017'
(CSMSSY-2017) for farmers in the State of Maharashtra as proposed by Government of Maharashtra.
During FY 2017-18 the bank redeemed Basel II /Basel III Compliant Bonds for an amount of Rs 1925 crore
by exercising call option. The bank undertook borrowing as part of its asset liability management.In 2017-18
the bank added two more partners in life insurance business i.e. M/s Aviva Life Insurance Company and M/s
Reliance Nippon Life Insurance Company.The Government of India infused total additional capital of Rs
3173 crore Bank of Maharashtra in two tranches; Rs 650 crore on 29 December 2017 and Rs 2523 crore on
27 March 2018.As part of its endeavor to curtail its operating expenses Bank of Maharashtra merged 51
branches during the year which were in close vicinity of each other ensuring that no discomfort was caused
to the customers.The Year 2017-2018 was a Technology Upscaling year for the bank. CBS Contract has
been renewed for a period of 5 years from 1 October 2017 to 30 September 2022 with revamped CBS Front-
end and additional components viz. Automated Testing Batch Job Automation On-line Training for staffs
Revenue Leakage Monitoring etc. During the year under review the bank tied up with BSNL for upgrading
the Bandwidth of the existing Leased Lines to 2 Mbps.During the FY 2018-19 Bank has redeemed Basel
II /Basel III Compliant Bonds for an amount Rs 200 crore on the redemption date. Bank undertook
borrowing as part of its asset liability management.Bank also entered into strategic tie-ups with Tractor
Manufacturers Micro Irrigation Companies Farm Pond Construction Company for promoting farm
mechanization micro irrigation activities and also with Govt. of Maharashtra under POCRA / SMART
Project for financing to FPO during the year 2018-19. The Bank has entered into an Agreement for Credit
Guarantee with Small Farmers Agri-Business Consortium (SFAC) for financing to Farmer Producer
Organizations (FPOs).During the FY2020 Bank's Total Business stood at Rs 244955 crore as against Rs
234117 crore in 2019 showing an annual growth of 4.63%. The Bank's Total deposits stood at Rs 150066
crore as compared to Rs 140650 crore in the previous year showing an annual growth of 6.69%. Gross
advances of the Bank stood at Rs 94889 crore as on 31.03.2020 in comparison to Rs 93467 crore as on
31.03.2019.The Bank has allotted 2970937912 Equity Shares of Rs 10 each of Bank to Government of India
at issue price of Rs 15.14 per share on 29 April 2019 against a capital infusion of Rs 4498 crore. The
Government of India infused Equity capital of Rs 831 crore in Bank on 20 April 2020. The said money is
kept in the Share application money pending allotment A/c till allotment formalities are completed. With the
approval of RBI said capital is used for computation of CET-1 Ratio as on 31.03.2020. Further the Bank also
raised Tier - II capital of Rs 600 crore by issue of BASEL III Tier - II Bonds with coupon rate of 8.70% in
March 2020.As on 31 March 2020 the bank had a distribution network of 1833 branches and 1851 ATMs
spread across all the States and four union