.

BANK OF
MAHARASHTRA

Bank of Maharashtra is a major public sector

bank in India. Government of India holds
87.01% of the total shares. The bank has 15
million customers across the length and breadth
of the country served through 1897 branches as
of 5 April 2016. It has largest network of
branches by any public sector bank in the state
of Maharashtra
 OVERVIEW

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 2018, the banks total branch
network comprised of 1,846 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 banks ATM network stood at 1,864 as on 31 March
2018.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,
Next Step 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.

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 INTRODUCTION

Around 1930, in the Maharashtra region of the Hindustan, 5 types of banking companies were
in operation namely Imperial Bank of India (New State Bank of India) Joint Stock
Commercial Bank (e.g. he Bank of India Ltd.) Exchange Banks, Co-operative Banks and
Princely Commercial Banks. All these banks were serving either to clients of the big cities
only or to a particular category of the society. The need for collecting savings of people from
the Maharashtra Region and spending it for the region only was felt by same prom inent
persons. Mr. V.P. Varde a well-known name in the co-operative movement wrote an article
in the Kesari of Poona dated 3rd August 1934 on the need of a commercial bank for helping
entrepreneurs and traders of this region.

In a General meeting of the Maratha Chamber of Commerce and Industry held on the 16th
Feb. 1935, a resolution for the establishment of a regional bank was accepted. A sub
committee was formed to work out the details. The Bank was registered when the name, and
style of T h e Bank of Maharashtra Ltd' under the Indian Companies Act, 1931. It was founded
in the city of Poona on Sept. 16, 1935 and was formally inaugurated on the Friday 8, 1936 at
the hands of Sir Sorabjee Pochkhanwala the Managing Director of the Central Bank of India.
The prospectus of the Bank stated that in the bank is intended to carry on commercial banking
of all kinds for the past many years Maharashtra has had no joint stock commercial Bank of
its own and it is with this view that this new banking institution has been sought into existence
- branches of outside banks working in Maharashtra districts have so far catered for the
banking requirements of public in their way, but they cannot obviously be substitute for a
banking institution started and conducted with the avowed object of prompt thrift,
encouraging banking habits and developing trade and industry among the people of
Maharashtra.

The following banks merged with BANK OF MAHARASHTRA;

1. Deccon Industrial Bank Ltd., Pune

2. Bharat Industrial Bank Ltd., Pune

3. Bank of Nagpur Ltd., Nagpur

4. Banthia Bank Ltd., Panvel

5. Bank of Known, Malvan

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Till 1969, the bank was concentrating in Maharashtra and the adjacent states. After
nationalization as per the need and Reserve Bank of India policy bank made entries into the
southern and northern states. The nature of lending was also changed. Since beginning the
bank's advances to prionty sector have been highest (percentage wise) in commercial banks.

The bank has introduced the Rural Development Centers to help the farmers and villagers to
take advantage of the various schemes. The bank's performance in implementation of the
Rajbhasha (Hindi) has been impressive.

CHART SHOWING GROWTH OF THE BANKS

Year Deposit Advance Branches Staff

1940 0.28 0.13 2 14

1950 2.31 1.25 18 342(1954)

1960 15.14 6.83 52 835

1969 78.20 54.8 153 2692

1970 103.68 71.97 211 3589

1980 807.45 481.18 716 11250

1985 1805.00 987.00 9.79 16388

Organization Structure:

The organizational set up is a reflection of the strength that the bank has to meet the challenges
which have been accepted by the bank. The design of organizational set up goes through the
following steps :

1. Understanding the historical perspective of an organization its evolving values, cultures

and climate.

2. Understanding the present organization, job divisions interactions work flow, information
flow, their functionality and dis functionality (as the case may be).

3. Understanding the future demands.

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4. Relating the organizational elements to the future needs.

5. Prescribing structural modification.

6. Prescribing supporting systems.

7. Testing and validation. 8. Implementation.

In the part most of the banks faced the following problems:

1. Most of the banks had a relatively centralized structure with changes of roles and rapid
expansion of branch network, the environmental responses left much to be desired.

2. The degree of flexibility and adaptability to meet with growing needs was lacking.

3. There was often inadequate delegation.

4. At the field level appropriate skills and motivation had to be generated.

BANK OF MAHARASHTRA which started as a regional bank, had to expand to many states,
due to nationalization and hence the organizational set up was changed in 1973. Till 1973, it
was a centralized organization where the field offices were controlled on the basis of their
geographical distribution. The respective divisions functioned from the central office. In the
1973, re-organization, the functioning was distributed on the functional basis at the central
office and the Divisional offices were shifts to the respective places. In 1976, it was observed
that the centralized activities at the corporate level for operational decision making was
becoming more cumbersome due to increase in the business and wide spread net work. Thus
to reduce the volume of operational decision making one more tier of Assistant General
Manager at Zonal level was created and 5 zones were created. Two positions of General
Managers, one for credit and one for Administration were also created.

In 1979, those were major changes in the organization structure of the bank. The number of
zones and divisions were increased after regrouping the branches for ensuring effective
control. One more tier in the field was introduced as Regional office to be headed by the
Deputy General Manager and according two offices were created at Pune and Bank of
Maharashtra . The 1983 set up was wherein one more regional office was created at Delhi
and 3 posts of Deputy General Managers were created at Central Office to head the 3 deptt.
viz. Administration, Inspection and Staff.

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 MANAGEMENT DISCUSSION AND ANALYSIS

Economic and Banking Scenario 2017-18:

In 2017-2018, global economic growth is estimated to have reached 3.0 per cent, a significant
acceleration compared to growth of just 2.4 per cent in 2016-2017, and the highest rate of
global growth recorded since 2011. Labour market indicators continue to improve in a broad
spectrum of countries.

India has emerged as the fastest growing major economy in the world as per the Central
Statistics Organisation (CSO) and International Monetary Fund (IMF) and it is expected to
be one of the top three economic powers of the world over the next 10-15 years, backed by
its strong democracy and partnerships. Indias GDP is estimated to have increased 6.6 per cent
in 2017-18 and is expected to grow 7.40 per cent in 2018-19. Steps to abolish of Foreign
Investment Promotion Board and reforms in FDI policy have been taken to attract higher FDI.
Indias growth story remain robust despite disruptions during this financial year like GST
Implementation and Demonetization. The bank recapitalization plan by Government of India
is expected to push credit growth in the country to 10 per cent.

Outlook for 2018-19

Global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage point
to 3.9 percent and 4.0 percent respectively on account of stronger activity and robust global
demand. The improvement in global economic conditions offers greater scope for
policymakers to shift from a short-term focus that is inevitably part of coping with crises,
towards addressing longer-term challenges and eliminating deep-rooted barriers to
development.

On the domestic front, IMF has projected Indian economy to grow at 7.4% in FY 19 and 7.8%
in FY 2020, with inflation expected to be around 4.96%. Economic activity is expected to
accelerate with the strengthening of investment activity, supported by consumption demand
and robust credit growth.

The private consumption expenditure is expected to receive a boost from demonetization and
lower borrowing costs. Rise in crude prices could however play a spoilsport.

Union Budget 2018 was the first budget after big-ticket economic reforms like the Goods and
Services Tax, dynamic fuel pricing and mega PSU bank recapitalization. The various

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proposals in the Union Budget 2018-19 with regards to launching of Operation Green,
doubling farmers income by 2022, focus on Make-in-India products, boosting the rural
economy and affordable housing and increase in capital expenditure will act as a catalyst for
growth.

Banking sector is also expected to be benefitted by the amendment in Insolvency and

Bankruptcy Code 2016 and the innovations in the form of massive adoption of Artificial
intelligence and Block chain technology being undertaken by the fintech companies.

Performance Highlights 2017-18

Your Bank was placed under Prompt Corrective Action (PCA) by RBI in June 2017, in view
of its high net NPA. Bank therefor had prepared or Monitorable Action Plan for FY 17-18 to
improve its position.

1. Total Business of your Bank stood at 233626 crore as on 31.03.2018 as compared to

240590 crore last year.

2. Total deposit stood at 138981 crore as compared to

139053 crore last year.

3. Average Deposits stood at 134294 crore as on 31.03.2018 as compared to 133392 crore

last year, registering a growth of 0.68% over last year.

4. CASA deposit stood at 66345 crore against last year figure of 62419 crore (growth of
6.29%). Total CASA percentage stood at 47.74%.

5. Gross advances of the Bank stood at 94645 crore as on 31.03.2018 in comparison to 101537
crore as on 31.03.2017 as a result of Banks policy to focus more on retail advances instead
of dependence on big corporate advances.

6. Operating Profit of your Bank reached 2191.42 crore as on 31.03.2018 as compared to

1827.07 crore last year.

7. Business per branch is 126.56 Crore as on 31.03.2018.

8. Business per employee is 18.07 crore as on 31.03.2018.

Investment

The breakup of Investments into SLR & Non-SLR investments is given below:

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The Gross Investments as on 31.03.2018 stood at Rs

44162.86 crore, of which 34469.75 crore are SLR securities and 9693.11 crore are Non-SLR
Securities. The excess SLR securities as on 31.03.2018 stood at

Rs 7085.16 crore.

The net investments (net of provisions) stood at

43622.80 crore as on 31.03.2018 as compared to

38590.18 crore as on 31.03.2017. Investments under

Held to Maturity (HTM) category consist of 69.82%, while

Available for Sale (AFS) comprised of 30.17% of total investment portfolio as of 31.03.2018.
The net interest income from investment activity increased to 2962.41 crore from 2829.47
crore during the last year (growth of 4.70%).

The Non-Performing Investments stood at 738.10 crore as on 31.03.2018.

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BOARD OF DIRECTORS

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 RECENT YEAR EVENTS

YEAR 2000

 Bank of Maharashtra (BoM) is launching its new cash management product.

 The Export Import Bank of India (Exim Bank) is slated to sign a Memorandum of
Understanding (MoU) with Bank of Maharashtra (BoM) on February 28 for
providing advisory services on export finance. - BoM launched its information
technology training institute, the first of its kind in banking industry in the country.
 Sukomal Chandra Basu has succeeded Madan Mohan Vaish as the Chairman and
Managing Director of the Company. - Bank of Maharashtra (BoM), a public sector
(PSU) bank, has formed an equal joint venture with Magic Software, an Israeli
software developer and its Indian subsidiary.

YEAR 2004

 Comes out with Rs 230 crore public issue of equity shares (100,000,000 equity shares
of Rs 23 each), issue oversubscribed 10.5 times
 Bajaj Auto and Bank of Maharashtra (BoM) have signed a strategic alliance to offer
two-wheeler loans in India.

YEAR 2005

 Bank of Maharashtra has informed that Mrs. Lila F Poonawalla, Director resigned
from the Directorship of the Bank and she stands relieved from her Directorship with
effect from August 01, 2005

YEAR 2006

 Bank of Maharashtra ties up with United Insurance Company

 YEAR 2007
 Bank of Maharashtra and Life Insurance Corporation of India have together unveiled
two products, Maha Suraksha Deposit Scheme and MahaGrih Suraksha scheme.

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YEAR 2009

 Bank of Maharashtra has informed that in terms of guidelines of the RBI vide letter
dated December 01, 2008, the Bank has appointed following five Chartered
Accountants firms as Statutory Central Auditors (SCAs) of the Bank for the year
2008-09.

1. M/s. C R Sagdeo & Co., Nagpur

2. M/s. Shah Baheti Chandak & Co., Nagpur

3. M/s. Wahi & Gupta, New Delhi

4. M/s. V C Gautam & Co., New Delhi

5. M/s. B Chhaawchharia & Co., Kolkata

 The appointment M/s. B Chhawchharia & Co., Kolkata is made in place of M/s. S
K Mehta & Co., whose term was completed. The other auditors are reappointed for
continuing as SCAs for the year 2008-09.

YEAR 2013

 Bank received " Greentech Fire Safety & Security Award 2013 " by Greentech
Foundation in Gold category.
 Bank of Maharashtra has been felicitated as a Best Public Sector Bank in India at
the Dun & Bradstreet- Polaris Financial Technology Awards 2013 under the
category 'Asset Quality'.
 The Bank has appointed Shri. R. Athmaram General Manager, Andhra Bank, as
Executive Director of the Bank of Maharashtra
 The has appointed Shri. Sushil Muhnot, Chairman & Managing Director, SIDBI as
Chairman and Managing Director of Bank of Maharashtra
 Bank of Maharashtra has won 4 awards in The Sunday Standard Best Bankers
Award 2013
 Bank of Maharashtra has been awarded "Business Excellence in Banking Award
2013" by Time Research.

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YEAR 2014

 Shri R. Athmaram (Executive Director) & Shri M. C. Kulkarni (General Manager,

IT) receiving the Best Bank for managing IT risk among mid size Banks award from
Dr. Raghuram G. Rajan ( Governor, Reserve Bank of India) .
 Bank was conferred as BEST BANK-PUBLIC SECTOR in BFSI Awards-2014 in
recognition of the Best performances in Banking Category.
 Bank of Maharashtra introduces savings bank deposit scheme
 The Bank has nominated Dr. S. Rajagopal, Reserve Bank of India, as Director, on
the Board of Bank of Maharashtra,

YEAR 2015

 Best Bank Award for Financial Inclusion for Emerging Bank - Winner -CSR &
Business Responsibility Award for Emerging Bank - Runner Up -Bank Grabbed 5
Awards in BFSI Awards by World HRD Congress -Bank of Maharashtra Grabbed
2 Awards in Skoch Summit 76th Foundation Anniversary function at Delhi -79th
Foundation Anniversary function at Pune

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 BUSINESS PROFILE

Bank of Maharashtra is an Indian bank based in the city of Pune. The bank was established
in the year 1935 with an initial authorized capital worth Rs. 10.00 Lacs, although it became
operational in the early phase of the next year. The bank got nationalized by the
Government of India in the year 1969. With a total number of 14216 branches located all
over India as on April 2009, the bank claims to have the largest number of branches within
the state of Maharashtra, among all the Public Sector Banks. Commonly known as a
common man's bank, Bank of Maharashtra adopts a philosophy of "Technology with
personal touch", and follows its motto stating "One Family, One Bank, Bank of
Maharashtra".

Facilities

All the branches of Bank of Maharashtra have been fully computerized, with Depository
services and Demat facilities being offered at 131 branches as of April2009. The bank aims
at increasing its ATM network from 345 to 500 soon, apart from planning to install
Biometric ATMs at some selected branches. Apart from it, introduction of Phone Banking,
Internet Banking and Mobile Banking is also on the cards.

Other Highlights

Apart from providing regular banking services to the customers, Bank of Maharashtra has
established two Joint Ventures to fulfill its other commitments towards the general public
and society. These Joint Ventures are M-SETI and Mahabank Info Centre.Mahabank Self-
Employment Training Institute (M-SETI) is an effort initiated by Mahabank Agricultural
Research & Rural Development Fund (MARDEF), a trust run by Bank of Maharashtra
receiving help from National Bank for Rurl Development (NABARD). The institute runs
various self-employment oriented training courses for the rural unemployed youth from the
districts of Pune, Kolhapur, Satara, Sangli, Nashik, Ahmednagar, Jalgaon, Dhule and
Nandurbar.

Mahabank Info Centre is a yet another initiative by Bank of Maharashtra aimed at providing
various retail baking related information to the customers, and enabling smoother
operations for them

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Vision of the organization:

To be a vibrant, forward looking, techno-savvy, customer centric bank serving diverse

sections of the society, enhancing share holders' and employees value while moving
towards global presence.

Mission of the organization:

To ensure quick and efficient response to customer expectations. To innovate products and
services to cater to diverse sections of society. To adopt latest technology on a continuous
basis. To build proactive professional and involved workforce. To enhance the
shareholders’ wealth through best practices and corporate governance. To enter
international arena through branch network. To be a vibrant, forward looking, techno-
savvy, customer centric bank serving diverse sections of the society, enhancing
shareholders' and employees' value while moving towards global presence.

Social aspect:

The bank excels in Social Banking, overlooking the profit aspect; it has a good share of
Priority sector lending having 38% of its branches in rural areas.

Other attributes:

Bank is the convener of State level Bankers committee. Bank offers Depository services
and Demat facilities at 131 branches. Bank has a tie up with LIC of India and United India
Insurance Company for sale of Insurance policies. All the branches of the Bank are fully
computerized.

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