Summary

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, 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 1,375 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 1,00,000 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 1,453 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.50,000 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 banks 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, childrens education, Marriage
of Children, Medical treatment, buying a vehicle or hi-tech gadgets
etc.During the year under review, Bank of Maharashtra issued
10,51,50,787 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 to treat 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 1925.00 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.