Beruflich Dokumente
Kultur Dokumente
7
NOTICE
NOTICE is hereby given that the Sixth Annual General Meeting of the Shareholders of Indian Bank will be held on Friday, the
June 29, 2012 at 10.00 a.m. at IMAGE Auditorium, MRC Nagar, Raja Annamalaipuram, Chennai - 600 028 to transact the
following business:
1. Todiscuss,approveandadopttheAuditedBalanceSheetoftheBankasatMarch31,2012,theProftandLossAccountfor
the year ended on that date, the Report of the Board of Directors on the working and activities of the Bank for the period
covered by the Accounts and the Auditors Report on the Balance Sheet and Accounts.
2. To declare dividends for the year ended March 31, 2012, if any.
By Order of the Board of Directors
Place : Chennai T M Bhasin
Date : May 25, 2012 Chairman and Managing Director
HeadOffce:66,RajajiSalai,Chennai-600001.
CorporateOffce:254-260,AvvaiShanmugamSalai,Royapettah,Chennai-600014.
NOTES
1. AppOINTMENT OF pROxy:
A SHAREHOLDER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO AppOINT A pROxy TO ATTEND
AND VOTE INSTEAD OF HIMSELF / HERSELF AND SUCH pROxy NEED NOT BE A SHAREHOLDER OF THE BANK.
TheProxyForm,inordertobeeffective,mustbereceivedattheCorporateOffceoftheBanknotlessthanfourdaysbefore
the date of the Annual General Meeting i.e. before the closing hours of the Bank on Saturday, the June 23, 2012.
2. AppOINTMENT OF AN AUTHORIZED REpRESENTATIVE:
No person shall be entitled to attend or vote at the Annual General Meeting as the duly authorized representative
of any body corporate which is a shareholder of the Bank, unless a copy of the resolution appointing him / her as a
duly authorized representative, certifed to be a true copy by the Chairman of the meeting at which it was passed,
has been deposited at the Corporate Offce of the Bank with the Company Secretary, Indian Bank, Investor Services
Cell, Wing 2 C, 2nd Floor, No.254-260, Avvai Shanmugam Salai, Royapettah, Chennai - 600 014, not less than four
days before the date of the Annual General Meeting i.e. on or before the closing hours of the Bank on Saturday, the
June 23, 2012.
3. ATTENDANCE SLIp-CUM-ENTRy pASS:
For the convenience of the shareholders, Attendance Slip-cum-Entry Pass is annexed to this Notice. Shareholders /
Proxy holders / Authorized representatives are requested to affx their signatures at the space provided therein and
surrendertheAttendanceSlip-cum-EntryPassatthevenue.Proxy/AuthorizedRepresentativeofashareholdershould
stateontheAttendanceSlip-cum-EntryPassasProxyorAuthorizedRepresentativeasthecasemaybe.
8
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i i Annual Report 2011 - 12
9
4. BOOK CLOSURE:
The Register of Shareholders and Share Transfer Register of the Bank will remain closed from Wednesday, the
June 27, 2012 to Friday, the June 29, 2012 (both days inclusive) for the purpose of Annual General Meeting and for
ascertaining the entitlement of shareholders for payment of dividend.
5. pAyMENT OF DIVIDEND:
Payment of dividend to shareholders as approved by the shareholders shall be paid to those shareholders whose names
appear on the Register of Shareholders of the Bank as on Tuesday, the June 26, 2012 and in respect of shareholders
holding their shares in dematerialized form as per the list provided to the Bank by the Depositories as on Tuesday, the
June 26, 2012 and the dividend warrants shall be mailed / credited within 30 days from the date of Annual General
Meeting.
6. TRANSFERS:
SharecertifcatesalongwithtransferdeedsshouldbeforwardedtotheShareTransferAgentattheaddressgivenin
Para (8) below for the transfer of shares of the Bank.
7. DETAILS OF BANK ACCOUNT IN DIVIDEND WARRANTS / NATIONAL ELECTRONIC FUNDS TRANSFER FACILITy
(NEFT)/ NATIONAL ELECTRONIC CLEARING SERVICE FACILITy (NECS):
The Bank is taking efforts to credit the dividend amounts to the bank accounts of the shareholders through National
Electronic Funds Transfer (NEFT) / National Electronic Clearing Service (NECS) facility, wherever possible. The
shareholders, who are holding the shares in electronic form, are, therefore, requested to inform their Depository
Participants about their latest change of address and bank mandate details (including new account number, if any,
banksMICRandIFSCodenumbers)immediatelytoensurepromptcreditingofthedividendamountsthroughNEFT/
NECS.IntheabsenceofsuchNEFT/NECSfacilityandintheeventofsomeshareholdersnotavailingsuchfacility,the
Bank shall print the Bank Account details, as available with it, in the dividend warrants.
TheShareholderswhoareholdingtheirsharesinphysicalformmaysendtheirBankMandatedetailstotheInvestor
Services Cell of the Bank or to the Share Transfer Agent of the Bank at the address given in Para (8) below on or before
Saturday, the June 23, 2012 for updating of the records.
The shareholders who are holding the shares in demat form may approach their DEpOSITORy pARTICIpANTS ONLy
for necessary action in this connection.
AproformaofNECSMandate/BankMandateisenclosed.
8. CHANGE OF ADDRESS:
Shareholders holding shares in physical form are requested to intimate changes, if any, in their registered address, to
the Share Transfer Agent of the Bank at the following address:
M/sCameoCorporateServicesLimited
(Unit:IndianBank)
Subramanian Building, No. 1, Club House Road
Chennai-600002.
Shareholders holding shares in dematerialized form are requested to intimate changes, if any, in their registered address
andNEFT/NECSmandatedetailsonlytotheirDepositoryParticipant(s).
9. REQUEST TO SHAREHOLDERS
a) Shareholders / Proxy holders / Authorized Representatives are requested to bring their copies of Annual Report to
the Meeting. Please note that copies of the Annual Report will not be distributed at the venue of the Annual General
Meeting.
b) Shareholders may kindly note that no gifts / coupons will be distributed at the venue of the meeting.
10. ShareholderswhowishtoseekanyinformationontheaccountsarekindlyrequestedtowritetotheInvestorServicesCell
oftheBankatitsCorporateOffce,whichshouldreachtheBankatleastoneweekbeforethedateoftheAnnualGeneral
Meeting so as to enable the Management to keep the information ready. Shareholders may note that information/
clarifcationshallbeprovidedonlyattheAnnualGeneralMeeting.
10
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i i Annual Report 2011 - 12
11
DIRECTORS REpORT 2011-12
To
The Members,
Your Directors have great pleasure in presenting the Bank's
Annual Report along with the Audited Statement of Accounts
and the Cash Flow statement for the year ended 31
st
March
2012.
Financial Highlights
The major highlights of the Banks performance are as
follows:
Operatingproftincreasedto`3463.17croreasagainst
`3291.68crorefor2010-11.
Net proft for 2011-12 stood at ` 1746.97 crore as
compared to `1714.07crorefor2010-11.
NetInterestMarginwasat3.43percent.
Returnonaverageassetswasat1.31percent.
Capital Adequacy Ratio was at 13.47 per cent as
comparedto13.56percentasofMarch2011.
Return on Net worth for FY2011-12 was at 18.73 per
cent.
Earningspersharewasat` 39.57 and Book value per
share was `214.94during2011-12.
GlobalBusinessoftheBankreached` 2,11,988 crore
duringtheyear,registeringagrowthof16.8percent.
Total Deposits grew by ` 15,000 crore to ` 1,20,804
crore,agrowthof14.2percentfortheyear2011-12.
Gross Advances were at ` 91,184 crore, registering
an increase of ` 15,458 crore (20.4 per cent) as on
31.3.2012. Overall Credit Deposit ratio was at 75.5 per
cent.
Priority Sector advances at ` 30,027 crore, grew by
`4,058crore(15.6percent).
Agriculturecreditgrewby`2,306crore(20.9percent)
to `13,354croreandaccountedfor18.47percentof
AdjustedNetBankCredit.
During2011-12,totalrecoveryofNPAs(includingAUC)
amounted to `466.26crore.
Gross NPA was at 2.03 per cent and Net NPA was at
1.33 per cent in March 2012.
Under Financial Inclusion project 5.98 lakh No-Frill
accounts have been opened.
Total domestic branch network of the Bank in India
increased to 1955 as on 31.3.2012 and all the branches
are under CBS. Besides, the Bank has 3 overseas
branches.
Total number of ATMs increased to 1280, which
included 357 offsite ATMs and customers can access
more than 89,000 ATMs in the shared network.
Income and Expenditure
Duringtheyear,totalincomeoftheBankincreasedto
`13,463crorewithinterestincomeat` 12,231 crore.
Netinterestincomeat`4418croreregisteredagrowth
of 9.5 per cent.
OntheExpenditureside,theBanksinterestexpenditure
was at ` 7813 crore, an increase of `2488croreor46.7
per cent.
Total operating expenses at ` 2187 crore for 2011-12
has shown an increase of ` 260.67 croreor13.53 per
cent, when compared to ` 1926.33crorein2010-11.
The income and expenditure for the period 2011-12
are given hereunder:
(`. in crore)
2010-11 2011-12 Growth
particulars Actuals Absolute %
TotalInterestIncome 9361.03 12231.32 2870.29 30.7
TotalInterestExpenditure 5324.91 7813.32 2488.41 46.7
NetInterestIncome 4036.12 4418.00 381.88 9.5
NetOperatingIncome 5218.01 5650.17 432.15 8.3
OperatingExpenses 1926.33 2187.00 260.67 13.5
OperatingProft 3291.68 3463.17 171.49 5.2
Provisions & Contingencies
including depreciation
on account of transfer of
securities to HTM category
1577.61 1716.20 138.60 8.8
NetProft 1714.07 1746.97 32.9 1.9
12
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i i Annual Report 2011 - 12
13
IMpORTANT RATIOS
(in per cent)
parameters 2010-11 2011-12
Yield on Advances 10.28 11.28
YieldonInvestment 6.94 7.29
Cost of Deposits 5.41 6.68
Return on Assets 1.53 1.31
CostIncomeratio 36.92 38.71
Business per employee (` in lakh) 929.75 1114.23
Proftperemployee(` in lakh) 8.88 9.30
DIVIDEND
The Board of Directors has recommended a dividend
of75percentforFY2011-12.Thedividendforfnancial
year 2011-12 shall be subject to tax on dividend to
be paid by the Bank. The total outfow on account of
dividend for FY 2011-12 is ` 362.33 crore excluding
dividend tax. The total dividend payout ratio works out
to20.74%percent.
NET WORTH AND CRAR
TheNetworthoftheBankimprovedto`9637.41crore
as on 31.3.2012 from `8326.55croreason31.03.2011,
refectingagrowthof12.5percent
As per Basel II, the Capital to Risk weighted Assets Ratio
(CRAR)is13.47percentasofMarch2012,comparedto
13.56percentasofMarch2011,againsttherequirement
of 9 per cent.
TheCRARofTierIcapitalwas11.13percentasofMarch
2012 as against 11.02 per cent as of March 2011.
(in per cent)
As on
March 2011 March 2012
Tier-ICapital 11.02 11.13
Tier-IICapital 2.54 2.34
Total 13.56 13.47
In accordance with the priorities accorded by the
Government of India, the Banks Advances to SC/STs
reached ` 2231 crore as on 31st March 2012 constituting
7.4percentoftotalPrioritySectoradvances.
Also,asperGovernmentguidelines,duringtheprocess
of direct recruitment and internal promotions, pre-
recruitmentandpre-promotiontrainingswereofferedto
SC/ST employees.
CHANGES IN THE BOARD DURING THE yEAR
During the period under review, Shri B Raj Kumar as-
sumed charge as Executive Director with effect from
January 1, 2012.
Shri. V RamaGopal, Executive Director demitted offce
on December 31, 2011 on superannuation.
Dr. N Krishna Mohan was appointed as the RBI nomi-
neetotheBoardonMay30,2011.ShriAmarjitChopra,
Chartered Accountant, Part time Non Offcial Director
wasappointedonAugust29,2011.ShriSanjayMaken
and Shri Butchi Rami Reddy were appointed as Part
timeNonOffcialDirectorsonAugust11,2011andon
September 22, 2011 respectively.
Shri Chintaman Mahadeo Dixit was appointed Share-
holder Director on July 01, 2011.
ShriSKaruppasamyandShri.CKRanganathanwere
DirectorsoftheBankupto30.05.2011and30.06.2011
respectively.
DIRECTORS RESpONSIBILITy STATEMENT:
TheDirectors confrm thatin thepreparationof theannual
accounts for the year ended March 31, 2012
The applicable accounting standards have been
followed along with proper explanation relating to
material departures, if any;
The accounting policies framed in accordance with
the guidelines of the Reserve Bank of India, were
consistently applied;
Reasonable and prudent judgment and estimates were
made so as to give a true and fair view of the state of
affairsoftheBankattheendofthefnancialyearandof
theproftoftheBankfortheyearendedMarch31,2012.
Proper and suffcient care were taken for the
maintenance of adequate accounting records in
accordance with the provisions of applicable laws
governingbanksinIndia;and
Theaccountshavebeenpreparedonagoingconcernbasis.
ACKNOWLEDGEMENT
The Board expresses its deep sense of gratitude to the
Government of India, Reserve Bank of India and Securities
& Exchange Board of India for the valuable guidance and
support received from them. The Board also thanks the
fnancial institutions and correspondent banks for their
co-operation and support. The Board acknowledges the
unstinted support of its customers and shareholders.
The Board places on record its sincere appreciation of the
valuablecontributionmadebyShriVRamaGopal,asExecutive
DirectoroftheBankfrom01.04.2011to31.12.2011.
The Board places on record its appreciation of the
valuable contribution made by Shri S Karuppasamy and
Shri.CKRanganathanwhoceasedtobemembersduringtheyear.
The Board places on record its appreciation of the dedicated
services and contribution made by members of staff for the
overall performance of the Bank.
For and on behalf of Board of Directors
CHAIRMAN AND MANAGING DIRECTOR
14
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|| li - n lni- i l| in -, i, ir| -in
- lni-, l, - -| ii r|
i li| ii nini - i| l, zoo l-i| i -
c.c lnin l-i| i zoz - .s lnin n lni-
i;|
l-i| i zoz - lini z lnin | l, ln | r
i sos./ ll -|| i i li r, l iin
sz. lnin li ri ss.c l-l -|| i,
l ii n s.s ll -|| i ri|
inni n (|i|) | l-iln zoz s ii
-r-i ni nrn r| il i iini ii-i (||)
i| i| ri n; i | in- - ri n| i iini
ii-i l-i| i zoz - i -i lnin
i s i -i r i l n r ii ni ii
i- ii - l-n- r| iin i i iini ii-i (||),
i l-i| i zoo - i -i i z.c lnin
ii l-i| i zoz | n l ln-ir| -
i -i (|||) .s lnin n i| riil zoz -
| ir s r n |ln r, |i| ili- n |
li |-ni i l i-ii - llnnii | r
i r|
iin i li| ~i l zo n - r soc ll
-|| -i zo n n ssr ll -l|
n ni il i| r n ;|| i ~ili
~i - n| ri r| l, i iini r|
-il i nni | l-iln zoz ii | | r||
nni ii-i zo i ii i-- i iii
ii , - li| -i lii i i
ii n ii r| | nni i| r| i l
lii -n iin |-| lnin li
i|| l i-i i|li i |ii - -in|
-i- l-i+ lii| nni i in li|
i zc a/ ku f o p kj & f o e ' kZ v kSj f o ' y s" k. k
i i Annual Report 2011 - 12
15
A. ECONOMIC ENVIRONMENT
Global Economic Conditions
After suffering a major setback during 2011, global
prospects are gradually strengthening again, but
downside risks remain elevated. Real GDP growth is
forecast to be slow by about 3 per cent in 2012, from
about4percentin2011,andtoreturnto4percentin
2013, according to the International Monetary Fund's
WorldEconomicOutlookApril2012update.
In the advanced economies, growth is projected at
about 1 per cent in 2012 and 2 per cent in 2013.
Because of weak confdence, fscal consolidation,
and still-tight fnancial conditions in a number of
economies, Euro area GDP is forecast to contract in
2012 by about per cent, after expanding by about
1 per cent in 2011. The Euro area is still projected
to go into a mild recession in 2012 as a result of the
sovereigndebtcrisisandagenerallossofconfdence,
the effects of bank deleveraging on the real economy,
and the impact of fscal consolidation in response to
market pressures.
Real GDP growth in the emerging and developing
economies is projected to slow from 6 per cent in
2011 to 5 per cent in 2012 and to reaccelerate to 6
per cent in 2013, helped by easier macroeconomic
policies and strengthening foreign demand.
Indian Economy
GDPisestimatedtodeceleratesharplyto6.9percent
during2011-12,withamarkedslowdowninagriculture,
mining and quarrying, manufacturing and construction
sectors.TheIndianeconomyinrecentyearshasbeen
hit by a combination of high infation, tight monetary
policy and weak global economic conditions.
Whileinfationhasmoderated,riskstoinfationarestill
ontheupside.Infationhaseasedinrecentmonthsto
6.89 per cent in March 2012 as against 6.95 per cent
in the same period of the previous year and is likely to
remain sticky at about current levels during 2012-13.
Price pressures persist with considerable suppressed
infation in oil, electricity, coal and fertilisers, the
incomplete pass-through of rupee depreciation, slow
supply responses and increase in indirect taxes as well
as demand effects of large government transfers.
Industrialgrowthsloweddownsharplyto3.5percent
duringApril-February2011-12from8.1percentinthe
year-agoperiod,ledbycontractioninminingandpoor
performance of the manufacturing sub-sector and
on account of weak demand for consumer durables,
refecting interest rate sensitivity, deceleration in
external demand and subdued investment demand
due to decline in business confdence. Moreover,
capital goods exhibited high volatility which showed
ade-growthof1.8percentinApril-February2011-12
comparedto14.7percentlastyear.
Manufacturing sector growth remained volatile and
grew at 3.7 per cent in the above period as against
8.7 per cent in the same period a year ago. The
growth slowdown has been driven by a sharp fall in
investment, moderation in private consumption and
fall in net external demand.
Core infrastructure industries growth also declined
to4.3percentinFY2011-12from6.6percentinFY
2010-11.
Exports registered 21 per cent growth in FY2012 to
cross US$ 303.7 billion while imports were 32.1 per
cent higher at US$488.6 billion taking the Balance of
TradetoUS$184.9billion.
The Balance of Payments (BoP) position came under
signifcant stress during Q3 of 2011-12 as the current
accountdefcit(CAD)widenedsubstantiallyandcapital
infowsdeclined.Currentaccountdefcitisexpectedto
touch4percentofGDPinFY2011-12,theworstinat
leasteightyearsbecauseofawideningtradegap.India's
currentaccountdefcit(CAD),whichwas2.6percentof
gross domestic product in FY2010-11, widened to 4.3
percentofGDPintheOctober-DecemberquarterofFY
2011-12.Whilecapitalinfowshaverevivedsomewhat
in 2012, BoP risks remain due to high oil prices and
uncertainties in the global economy.
Indias external debt increased to US$ 335 billion
at end-December 2011 from US$ 306 billion at end-
March2011largelyrefectingasharpincreaseinECB
and short term debt.
Monetary and liquidity conditions remained tight
during 2011-12. Liquidity defcit turned large since
November 2011 due to both structural and frictional
factors, mainly forex operations and a buildup of
Governmentscashbalances.Liquidityremainedtight
and was above the comfort level of the Reserve Bank
thatisabove1%ofNDTL.ReserveBanksteppedup
injectingdurablediscretionaryliquiditythroughOMO
purchases and CRR cuts.
MANAGEMENT DISCUSSION AND ANALySIS
16
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i;| rn ii ii i- ii - i |
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i- | | - iiiii i i liln lnilni
l |i-| i| i o i| ln so
l zo n s.r lnin | ni - so -i, zoz
n n| s.cs lnin n i|
i zoz i- i -ir ii -i i|,
r i n-n zo ln- nir l zo
- i n i i lii -~ ri| iin|
l i i ,ii l n ii ii i l-i
ri ni l li| ll- ii - --i| i i
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ln i -n n ~-i ii| ii -ii |
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l-i, l-i| i zoz - ;l-| ii l-i i|
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i r.r lnin | n iini r|
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| l -i ilii s -i zoz i ` ,zo,ooo i
i i i ` ,zo,so i ri n;, l
ls i r ` ,or,so i i|| ;- .z lnin
| l, ii ` r,ooo i | l, r;| | i|
-iilii ls i ,oz,ssz i `s,o i
s -i zoz i ` ,r,//z i ri n;| ; i ;-
s. lnin | l, r;|
s -i zoz i ii -iilii ls i ` sz,css i
` sc,scc i ri n;| ;- s.o lnin
| l, r; r|
_ . k n su k %
ln- s -i zo ` /r,/zc i
-i s -i zoz i zo. lnin | l, n r
s,s i -n r n| i| ~i - `s,/zs
i i ;ii ri (s.s lnin) i r ls i
` /z,rs/ i -i s -i zoz i ` sc,so i
ri ni|
i| iinn ~i ls i `/,oc/ i -i
`s,rss i (s. lnin) s -i zoz i
`s,cco i ri ni r|
l ~i -i (||) in s -i zoz i /r.r lnin
ii|
' kk[ kk r a= v kSj f o L r kj %
iin - iiii n i l-ni li i sr iiii
ii -i zoz | -iln n iiiii | i i srr
|| ;- rzo ni-|i, rs iir|, roo ir| i ssc
-rin| iiii r| ; iiii n lnln s l-ni
-, zs ii, nr -, cc ni-|i ln i
nii i ii r| ; ii lni, ii i
i - | s li| iiii in r|
zooo li ii|i nii -, i l-n| -ii
nnn || -i - l n r, ro ln i iiii
(|) ii| r|
i i Annual Report 2011 - 12
17
Tight liquidity conditions saw money market rates
frm up. G-sec yields also frmed up post-budget in
response to the large market borrowing programme.
Following the Union Budget announcement of a higher
than anticipated market borrowing programme and
the subsequent issuance of auction calendar for dated
securities, the 10 year yield rose steadily to 8.63 per
centbyMarch30,2012ascomparedto8.54percent
as on December 30, 2011.
The rupee depreciated against the US dollar from the
lastweekofAugust2011tomid-December2011after
beinglargelyrangeboundduringthefrstfourmonths
of 2011-12. It stabilised in response to the measures
undertaken by the Reserve Bank and the government
which helped to curb speculation and reduce volatility
in the foreign exchange market. These measures
considerably reversed the movement of the rupee
against the US dollar from the low of `54.2perUSdollar
on December 15, 2011 to ` 50.87 per US dollar by end
March 2012. The rupee was also weak against other
majorcurrenciesandclosedat67.90/92and81.52/54
againsttheEuroandPoundSterlingrespectively.
Overall,equitymarketswerevolatileinFY2011-12.The
BSESensexslumpedto17404.20points,down10.5per
centor2041pointsfromthepreviousyearsclose.The
Nifty settled down 9.22 per cent to 5295.55 points.
MONETARy DEVELOpMENTS
As on 31st March 2012, the growth in Aggregate
DepositsofScheduledCommercialBankswasat17.4
per cent as against a growth of 15.9 in the previous
year. Demand Deposits growth showed a negative
trend throughout the year but ended higher at ` 980
billion on 30th March 2012.
Credit off-take was sluggish, however, the growth in
the last two months of February and March accounting
for40percentofthetotalnon-foodcreditduringthe
year resulted in a credit growth of 19.3 per cent as at
end March 2012.
Monetary policy was strongly anti infationary until
October 2011. Subsequently, decelerating growth and
declining infation momentum prompted monetary
policy to move to a neutral stance since December
2011. The Cash Reserve Ratio (CRR) was eased by 125
bps during January-March 2012 to 4.75 per cent to
ease liquidity. Reserve Bank hit the pause button and
policy rates were kept neutral after the hike to 8.5 per
cent on January 28, 2012 from 7.25 per cent as on May
3, 2011. Statutory Liquidity Ratio was kept at 24 per
cent from December 18, 2010.
During 2011-12, the Reserve Bank injected primary
liquidity through Open Market Operation (OMO)
purchases, aggregating around ` 1.3 trillion, and also
through CRR cuts infusing around ` 0.8 trillion.
DETAILED BUSINESS OVERVIEW
Global Business of the Bank has reached a level of
` 2,11,988 crore as on March 31, 2012 from ` 1,81,530
crore in the previous year, registering an increase of
` 30,458croreor16.8percent.
Domestic Business of the Bank has increased by
`27,163croreto` 2,02,082 crore from `1,74,919crore
as on March 31, 2011, registering a growth of 15.5 per
cent.
Resource Mobilisation
GlobalDeposits of the Bank has crossed the ` 1,20,000
crore mark to ` 1,20,804 crore as on March 31, 2012
from ` 1,05,804 crore in the previous year, with an
accretion of `15,000croreor14.2percent.Domestic
Deposits of the Bank has increased by `13,440croreto
` 1,15,772 crore as on March 31, 2012 from `1,02,332
crore in the previous year, registering a growth of
13.1 per cent.
CASA Deposits has reached the level of ` 36,866
crore as on March 31, 2012 from `32,639croreinthe
previous year, recording a growth of 13.0 per cent.
Credit Deployment
Gross Advances of the Bank increased to ` 91,184
crore as on March 31, 2012 as against `75,726crore
as on March 31, 2011, recording a growth of 20.4
per cent. Domestic Credit has increased by ` 13,723
crore (18.9 per cent) to ` 86,310croreasonMarch31,
2012 as against ` 72,587 crore last year.
DomesticNon-foodcredithasincreasedby` 13,593 crore
(19.1 per cent) to ` 84,660croreasonMarch31,2012
as against `71,067croreinthepreviousyear.
Global Credit-Deposit Ratio as on March 31, 2012
stood at 75.5 per cent.
BRANCH NETWORK AND ExpANSION
TheBank has expanded its branch network by opening
95 new branches in India taking the tally to 1955
branches as at end March 2012, comprising 520 Rural,
549 Semi Urban, 500 Urban and 386 Metropolitan
branches.Thebranchnetworkissupplementedby34
Extension Counters, 23 Satellite offces, 1 Collection
Counter,66RuralBankingServiceCentresand1Forex
Bureau. Besides, the Bank has 3 foreign branches in
Singapore, Colombo and Jaffna.
Bankhasopened50UltraSmallBranches(USBs)inthe
villages with population above 2000 covered through
BCmodelunderFinancialInclusion
18
[ k. M o kj f u " i kn u %
i zkF kf e d r k { ks= d s _ . k
s.os.zoz i iil-ni i ln- `so,oz/ i r il
s -i zo i -iiln l ~i (||) i .r
lnin ii| l-n| i zoz ii ; i ors
i i r.c lnin | l, ||
f " k _ . k%
s -i zo | -iln li ln- ` s,sr i r nii
r || i s.r lnin ii| ls i zoo - r;
zo.s lnin l, | ni - l-n| i zoz ii ;
i - zo.s lnin i ` zsoc i | l, r; r|
f " k f o r j . k %
lii li ~i ii (||) nnn zoz ii
`z,/c i li ~i lnln l r l ili
` s,soo i ii l l r lnin | li
ril | n| r|
n - .zsz i | ili, rzz,cc ii i
lnln | n;|
` c/s i | ili o,s,// i,|-in ii i lnln
| n; r, i iin| l n- o lnin
| ni - -i li lnii i rc lnin ni r|
i| i | -i- ii - iin r r-i| ni-|i iiiii
nr li ~i lii iiln l l ir
i li i ~i i ir ii i ii ii r-i i
i ii| ; lii li ii r-i| iiiii
` sr./ i li ~i lnln l r l cscs
ii i ii ri r|
e kb ks f o Rr d h i g y %
-i zoz i -in i ii /z,c/r - rini
-ri i `.ssz i lnln l r| -i;i l-n (|)
nnn ii ilii - `.zs i | n r -i
zoz i `.zss i ri n; r l o.s lnin | l, |
n; r|
e kb ksl sV ' kk[ kk, a%
-i zoz | -iln n r -i;i- iiiii (| i
~i i - lii|n iiii) zs,ssz | ni i
n r ` rrs i lnln l| -i zoz | -iln
ii ln- co,s | i n r `.szz
i i|
d e t ksj { ks= d ks v f x ze
-i zoz | -iln -i ni i -n ii ~i
`/rc i i il o lnin , -i l,
|| i o. lnin ni r|
|ii; ln- zoz ii, ` r i
s,csz |ii; ~i lnln l r| s.os.zoz i ii
-n ` zr i ri il -i zo i r ln-i -n
i o.o lnin ni r|
i,i i ln- s.os.zoz i i,i i
ii ~i ` z,zs i ri, il iil-ni i
ln-i i /. lnin ni r|
~ -ii i ~i ~ -ii i -n ~i,
i -i zo | -iln `. ssr.r i r, s.os.zoz
i ` cs/.c i | l, `. coz.c i n, l
r r lnin -i | ni - iil-ni i
ln-i i r.sz lnin ni r|
' kSf { kd _ . k ; kst u k%
-i zoz i -in i i i, ss,zr sii i ` rs
i i li ~i lnln l r | -i zoz | -iln
i li ~i liin - -n ~ii - `./ i | l, ii
r ` szzz.o i ri|
o i; zoos - i li ~ii i i
siii i o.r lnin | i - lin -n | in|
r |
i; | i li ~i i i nn n ili l- -i ni
sii (l| -inilni,li | ili i ` .ro
ii lni li r| r ) ,ii iin - n||,iil
i- -i l in i li ~ii r n -in li
i i i ;-i i | | i i (|i; ),
- iiln | i r| r |
i i -i nii n| i| li -i i- -i nn n
i sii i rini i l | i li
~in i; | i i i ii ln | n; r |
{ ke r k f u e kZ. k i g y %
ni-|i ni l- r - -
lli li nlnllii l ni-|i li rn
;l i (i;|-|i|) i- i -iiln
li r| ; i i| l-n i -ll--
(ii i) , i-|, i|-, ilnl, i-, -,
lnii-, ln~, l- i ~ (nl-i),
- i~- | - l-n| iini i ~i i-i
(||) -iiln l r| n /,zcr lni i
l-n| i-i i li ni r|
, i-|, i|-, -, |, ~, l-n
i ln~ s i - ;l -li liii
-ii (; -|) i- -| -i liii -ii
i i Annual Report 2011 - 12
19
SEGMENT-WISE pERFORMANCE
priority Sector Credit
PrioritySectoradvances stood at ` 30,027 crore as on
31.03.2012,constituting41.5percentofAdjustedNet
Bank Credit (ANBC) as on 31st March 2011. The sector
registered a growth of 15.6 per cent or ` 4058 crore
duringFY2011-12.
Agriculture Credit
Agriculture advances stood at ` 13,354 crore and
constituted 18.5 per cent of ANBC as on 31st March
2011. The sector has registered a growth of 20.9 per
cent or `2306croreduringFY2011-12asagainst20.8
percentachievedduringFY2010-11.
Agricultural Disbursement
Under Special Agricultural Credit Plan (SACP) during
2011-12,theBankdisbursedfarmloansamountingto
`12,761croreasagainsttheannualtargetof` 8,300
crore,recording154percentachievement.
Oftheabove,`2432croreweredisbursedto522,664
new farmers.
` 6,478 crore has been disbursed to 10,31,774 small/
marginal farmers, which works out to 56 per cent of
Direct Agricultural disbursements against the RBI
directiveofminimumof40percent.
TheruralandsemiurbanbranchesobservedIntensive
FarmCreditCampaigncoincidingwithKharif&Rabi
season with the dual objective of enhancing credit
fow to agriculture and strengthening relationship
with the farmers. During such campaign period, the
Banks branches have disbursed Agriculture credit
to the tune of ` 4315.74 crore beneftting 618634
farmers.
Micro fnance initiatives
During the year ended March 2012, the Bank has
disbursed `1882croreto72,675SHGs.Outstanding
under SHGs increased by ` 218 crore to reach `2343
crore as of March 2012, registering a growth of 10.3
per cent.
MICROSATE Branches
As at end-March 2012, 45 MICROSATE branches
(specialised branches for lending to SHGs) disbursed
` 553 crore covering 23,932 SHGs. Total outstanding
advances as at end March 2012, was at ` 822 crore
covering60,118SHGs.
Weaker Section Advances
Credit outstanding to Weaker Sections stood at `7546
crore as atendMarch2012,workingoutto10.4percent
of ANBC as against the stipulated norm of 10 per cent.
DRIAdvances:DuringFY2011-12,theBankdisbursed
13,632 DRI loans amounting to ` 15 crore. As on
31.03.2012, the outstanding level stood at ` 25 crore,
working out to 0.04 per cent of total advances, as of
march 2011.
Advances to SC/STs: Outstanding credit to SC/ST
benefciariesstoodat` 2,231 crore as on 31.03.2012,
working out to 7.4 per cent of Priority Sector
advances.
LendingtoMinorities:AdvancesgrantedtoMinorities
which stood at `3,915.15croreasatend-March2011
increased by ` 687.46 crore to reach ` 4602.61 crore
as on 31.03.2012, working out to 15.32 per cent of total
Priority Sector Advances, as against the stipulated
norm of 15 per cent.
Education loan scheme
During the year ended March 2012, the Bank
disbursed a sum of `594croreaseducationloansto
93,215students.ExposuretoEducationloanportfolio
increased by `471croreto`3222.01croreasatend-
March 2012.
Interest concession @ 0.50% on the applicable card
rate on fresh education loans sanctioned to girl
students is allowed with effect from 01.07.2009.
"Central Scheme to provide Interest Subsidy (CSIS)"
during the moratorium period of education loans
availedbystudentsfromEconomicallyWeakerSection
(with an annual gross parental/family income not
exceeding ` 4.50 lakh per year) under IBA education
loan scheme, to pursue technical/professional courses
inIndiaisbeingimplementedbytheBank.
In order to help students pursuing courses under
Management quota and three year diploma courses,
Bank'seducationloananonIBASchemewasdevised
and implemented.
Capacity Building Initiatives:
As a step towards getting closer to the rural people,
the Bank has set up a Trust - "Indian Bank Trust for
Rural Development'' (IBTRD) for undertaking various
developmental activities. Under the Trust, the Bank has
established Financial Literacy and Credit Counselling
(FLCC)centersatChittoorandMachilipatnam(Andhra
Pradesh) Cuddalore, Dharmapuri, Kancheepuram,
Krishnagiri, Namakkal, Salem, Tiruvannamalai,
Tiruvallur,VillupuramandVellore(Tamilnadu),Kollam
inKeralaandPuducherry.Atotalof7,265individuals
havebeenprovidedfnancialcounsellingsofar.
TheBankhasalsoestablishedRUDSETIModelTraining
institutes named as Indian Bank Self Employment
Training Institute (IND SETI) in eight centers viz.,
Cuddalore, Dharmapuri, Kancheepuram, Salem,
20
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rin r n z/s liii iiln l n r|
i-ni l-ii | lii - | n ri ii
ni-|i liii (i-||), i|, nl-i (ii
i i;i| ii n ) i ii i
ni-|i n-l-n li -ii ||i;i|, rii
(iii i i i i ii n ) -
i| iin ri r| ii -ii ni-|i i ln
i r i ini -i liii i- i n
r| i-||, i| ,ii r,cs/ -i i ii rin r
zs liii i- i ||i;i;|, rii ,ii s,zs
-i i ii rin r s i- iiln l n r|
f o Rr h; l e ko s' k ; kst u k , Q v kb Zi h
i;| nnn ;l i zooo li ii|i
rzz ni il-n l n r| ii zo ii - zooo
li ii|i, i il-n ; i| rzz nii -
l-ii lli n| -ii -i- ln i
i | n; r
--i- i iiiln ii | (||) -i l zr
ni
ll-n iiiii (/),ln i i (r) l rz ni
-ii; iiii, l r ni
in i i;| nnn ooo li ii|i
zoos ni il-n l n r| n nl-i i |
-| - oo nii i ln i i | n; r|
l-n| -ii nnn || -i l
l n zooo li ii|i nii - ro ln i iiii
(|) ii| r|
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i ii - lli iiiii l s.zr ii i
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||| lii - | n; r|
niri | lii lrn l -i lnn l
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i i Annual Report 2011 - 12
21
Puducherry, Vellore, Chittoor and Tiruvallur. A total
of 278 training programmes have been conducted by
INDSETIsbeneftting7,326individualssofar.
Apart from the above exclusive initiatives of the
Bank towards capacity building, the Bank is also
participatinginRuralTrainingCentre(RTC),Karaikudi,
Tamil Nadu (jointly with NABARD & IOB) and Andhra
PradeshBankers'InstituteofRural&Entrepreneurship
Development - APBIRED, Hyderabad (jointly with
Government of AP & four other Banks). These two
training institutes offer wide range of skill oriented
training programmes focusing on rural population. A
total of 231 training programmes have been conducted
byRTC,Karaikudibeneftting5,637membersand149
programmes by APBIRED, Hyderabad beneftting
3,429members.
Financial Inclusion plan (FIp)
UnderFIP,IndianBankhasbeenallotted1522villages
with population above 2000. All the 1522 villages with
population above 2000 allocated to the Bank covering
20 States across the country, have been provided with
banking services through various delivery models as
below.
1425villagesthroughSmartcardbasedBusiness
Correspondent (BC) Model
52villagesthroughBrickandmortarbranches(7)/
BankingServiceCentres(45)and
45villagesthroughMobileBranch/Van
Further,theBankhasbeenallotted2003villageswith
morethan1000populationunderFIP.Sofar,banking
services have been provided to 100 villages in Tamil
Nadu and UT of Puducherry.
Bankhasopened50UltraSmallBranches(USBs)inthe
villages with population above 2000 covered through
BCmodelunderFinancialInclusion.
As on 31.03.2012, 597,802 'no frill accounts' have
been opened in the FIP implementing villages with
population above 2000. Of these, 525,881 accounts
were opened under Information Communication and
Technology(ICT)basedBusinessCorrespondent(BC)
model. Smart cards have been issued to the account
holders.
EvenbeforetheimplementationofFinancialInclusion
Plan,IndianBankhadstartedopeningNofrillaccounts
way back from 2005. As on 31.03.2012, Bank has
opened 31.25 lakh No frill accounts through various
branches across the country (including accounts
openedunderFIP).ODandGCCfacilitieshavebeen
sanctioned to 56,297 benefciaries to the tune of
`1302.62lakh.
New products for the convenience and beneft of
the customers has been introduced which includes
Recurring Deposit, Variable Recurring Deposit product,
SB cum Overdraft facility (OD) and an Overdraft limit
upto `10,000/-isprovidedtonon-farmersandlandless
labourers to meet contingencies.
In UT of Puducherry, where the Bank is the SLBC
Convenor,42villageswithpopulationabove2000and
25 villages with population 2000 and below have been
allotted to various Banks under FIP. Banking services
have been extended to all the villages with population
above 2000 as well as with population 2000 and below
by the member banks through various delivery channels.
UT of Puducherry has become the frst state in the
country to provide banking services to all the villages
includingvillageswithpopulationbelow2000underFI.
The Bank has sponsored three Regional Rural Banks
(RRBs) viz., Saptagiri Grameena Bank, Chittoor;
Pallavan Grama Bank, Salem and Puduvai Bharathiar
Grama Bank, Puducherry. As on 31.03.2012, under
FinancialInclusion,allthe240villageswithpopulation
above 2000 allotted to the RRBs have been provided
with banking services.
InTamilNadu,theBankisimplementingapilotproject
for disbursement of Pension under Social Security
Scheme (SSS) in two taluks namely, Kattumannarkoil
(Cuddalore District) and Manapparai (Trichy
District). Presently, pension payment is made to the
benefciariesin109villagesofKattumannarkoilTaluk,
Cuddalore Dist., and 11 villages of Manapparai Taluk,
Trichy Dist., through ICT based smart card enabled
Business Correspondent Model. It is proposed to
disburse pension to benefciaries in all the villages
with population above 2000 in the State of Tamil Nadu
from 30th June, 2012.
Lead Bank Scheme
The Bank holds SLBC responsibility in UT of
Puducherry and Lead Bank role in 13 districts (10 in
TamilNadu,2inAndhraPradeshand1inKerala).The
Lead Districts are actively involved in implementing
FinancialInclusionPlantoprovideBankingServicesin
unbanked villages.
CREDIT FLOW TO SMALL AND MEDIUM
ENTERpRISES (SME)
TheBanksexposuretoSmallandMediumenterprises
was at `10160.29croreason31.03.2012.
The Bank has established MSME Central Processing
Units (CPU) at 9 key centers at Chennai, Mumbai,
Kolkata, New Delhi, Ahmedabad, Bangalore, Pune,
CoimbatoreandKanchipuram.
ForfocusedattentionandgrowthofMSMEportfolio,
theBankhasoperationalised72SpecialSMEBranches
across various Zones.
22
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i i Annual Report 2011 - 12
23
The Bank has approved cluster specifc schemes for
Textile Cluster in Bhilwara Region, Ceramic Cluster in
MorviRegion,LeatherClusterinBhiwandiRegionand
Fastener Cluster in Chandigarh Region.
pERSONAL SEGMENT LOANS
During the year, the Bank continued its focus on
various Personal Segment Loans such as Home
Loan, Automobile Loan (Car/2 wheeler), Salary Loan,
EducationLoan,MortgageLoanetc.
TheBankhasintroducednewschemeunderHomeloans
with title Home Loan 2011 scheme, with rationalised
interest rates. The scheme is applicable for all fresh
sanctions made on or after 01.10.2011. To beneft the
existing customers, an option to switch over to the new
scheme by paying a nominal fee has been given. Further to
be competitive in the market, processing charges on Home
Loanswerereducedandpre-paymentchargesclausein
theBanksHomeLoanschemehavebeenwithdrawn.
The facility for applying Home Loans on-line by
customers was inaugurated by Honble Union Finance
Minister during the year.
The segment-wise exposure as on 31
st
March
2012 is as under:
(` crore)
S.No Product Exposure
1 HomeLoan 5878.06
2 Automobile 404.63
3 PersonalLoan 417.46
4 LoanagainstNSC/KVP/LICPolicy 46.25
5 MortgageLoan 231.23
6 EducationLoan 3222.01
7 JewelLoan(NP) 1379.92
8 Others 1531.47
9 Total 13,111.03
TheoutstandingonPersonalSegmentLoanworksout
to14.64percentofBanksgrossnon-foodcreditand
the y-o-y growth on personal segment loans was at
12.31 per cent.
Under Automobile Loan portfolio, the Bank has
registeredagrowthof34.64percentduringtheyear.
Bancassurance and Mutual Fund Business
The Bank has corporate agency tie-up agreement
with United India Insurance Co. Ltd. (UIICO) for non
life insurance business and with HDFC Standard Life
insurance Co. for life insurance business.
TheBankalsohastieuparrangementswithUTIAMC,
Reliance AMC and SBI Mutual Fund for distributing
their Mutual Fund Products.
VariousGroupInsuranceProductsofferedbytheBank
to its customers on optional basis by arrangement
withUIICO/LIC/KotakMahindraOldLifeInsuranceCo.
(Kotak)/MetLifeIndiaInsuranceareIBJeevanKalyan
& IB Jeevan Varishta (from LIC) IB Yatra Suraksha
scheme (from UIICO) for all customers, IB Griha
Jeevan(fromLIC),IBHomeSuraksha(fromKotak)to
coverthelifeofHomeloanborrowersandIBJeevan
Vidya(fromLIC),IBVidyarthiSuraksha(fromMetLife
India Insurance Ltd) are offered to cover the life of
education loan student borrowers.
The Bank has earned a commission income of
`19.26crorebywayofmarketingthirdpartyproducts
like life insurance, non life insurance and mutual fund
productsduringthefnancialyear2011-12.
OTHER FINANCIAL pRODUCTS
IB Swarna Mudra
IBSwarnaMudraoffersgoldcoinsof24caratinvarious
denominations with 999.9 purity and International
Assay certifcation. The gold coins and bars are
available for sale through the network of more than
1600branchesspreadacrossthecountry.
Goldcoinsalesduringthecurrentfnancialyearwere
at2046.34kgwithanon-interestincomeof` 20 crore
asagainstthesaleof1150.926kgduringtheprevious
fnancialyearwithanincomeof` 12.5 crore.
Credit Card
The Bank offers three card variants under Global
Credit Cards - IB Gold, Classic Card under Personal
CardSegmentandIBVisaBusinessCardforBusiness
entities.
The Banks credit card base has increased to 43,449
duringFY2011-12,registeringagrowthof13.99per
cent. The total income from credit card business
has improved to ` 825 lakh during 2011-12 from the
previous years level of `666lakh,recordingagrowth
of 19 per cent.
TheBharatCardfortheCommonManwaslaunched
aspartoftheBanksfnancialinclusionforthelower
income groups.
ThesalientfeaturesofIBCreditCardsareasunder:
NojoiningfeeandAnnualmembershipfee
Interest free credit period for purchases :
Minimum15daysandMaximumupto45days
24
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rn i|liii l i- ii iii l-n
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lli li l-ln - (- -r| i- nn| ii,
i) ; li l-i |ii li ini r| -il i
nirni lii l i ili- i i li ini
nii i~ii,i ,ii ;| |ii | in| r| |i ili-
i liin i li- ii l-il, -n -i|
i i -il- ni r| ili li nni
ini i -il- | li- i~ii i | in| r|
l i | lii - -iiln inl li l---i
in i lli ili- i- | i|lni i i l
lii-- ili- i i li ini r| lli -ii,
lii - llrn ili- ii i iii-- lii li ini
i ini lii-- ii; ii | in| r|
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ni, -i i i ni r, lr i ni l~ I
nnn in r| li ni r i l ili
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ni r| iiln ii iii iii n n| ii
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i i Annual Report 2011 - 12
25
Competitivelowerinterestrates
Freeaccidentinsurancecoveravailabletoallcard
holders
Value Added Benefts: Automatic Credit of
Reward points
ASSET QUALITy MANAGEMENT
Deployment of prudent credit monitoring tools, with
continuous and consistent focus on quality of assets.
The Bank is following the system driven NPA (Non
Performing Assets) identifcation successfully since
2010-11.
Bankhastakentimelyactionforrecovery/upgradationof
fresh NPA accounts and stressed accounts are regularly
followed up to minimize slippages by identifying and
monitoring Special Mention Accounts (SMA).
The Bank has recorded good performance towards
recovery of fresh NPAs and upgradation. Different
recovery mechanisms like Lok Adalats, Negotiated
settlements through OTS and recovery measures
throughDRT/SARFAESIACThaveresultedinimproved
recovery performance.
Prudent SMA Monitoring and vibrant recovery
measures adopted have resulted in recovery in
stressed assets.
Inlinewiththechangingeconomicscenario,Recovery
PolicyandOTSPolicieshavebeenfnetunedandfront
line offcials have been sensitised to further improve
recovery performance.
The Loan Review Management Committee (LRMC)
reviews Standard Assets through Loan Review
Mechanism and Credit Audit functions on a regular
basis. Standard Assets Monitoring Committee (SAMC)
reviews Special Mention Accounts (SMA) on a
continuing basis and timely recovery action is being
initiated to prevent slippage of standard assets to Non
Performing Assets.
RISK MANAGEMENT
The Bank has complied with all the guidelines of the Reserve
BankofIndiaoncreationofRiskManagementarchitecture.The
BankisBASELIIcompliantwitheffectfrom31stMarch2008.
A roadmap has been drawn and steps are being taken for
moving over to advanced approaches under BASEL II. An
independent Risk Management Department is functioning
foreffectiveEnterpriseWideRiskManagement.Alltherisks
the Bank is exposed to, are managed through the following
three Apex level committees viz.,
(i) Credit Risk Management Committee (CRMC)
(ii) AssetandLiabilitiesManagementCommittee(ALCO)
(iii) Operational Risk Management Committee (ORMC).
These committees work within the overall guidelines and
policies approved by the Board and Risk Management
Committee of the Board.
The Bank has in place various policies to manage the risks.
To analyse the enterprise-wide risk and integrate all the
risks, an Integrated Risk Management policy has been put
in place.
The important risk policies comprise of Credit Risk
ManagementPolicy,AssetandLiabilitiesManagementPolicy,
Operational Risk Management Policy, Business Continuity
Planning Policy, Internal Capital Adequacy Assessment
Process (ICAAP) Policy, Stress Testing Policy, Collateral
Management Policy, Disclosure Policy, Integrated Risk
Management Policy and Policy on Corporate Governance.
All the policies are reviewed on an annual basis by the
Risk Management Committee (RMC)/Board. In order to
disseminate the risk management concepts and also to
sensitisethefeldlevelfunctionaries,alltherelevantpolicies
are circulated to the branches, in addition to imparting
training at the Bank's training colleges.
Risk Management Systems are in place to identify and
analyse the risks at the early stage and manage them by
setting and monitoring prudential limits besides taking other
corrective measures to face the changing risk environment.
Software driven rating mechanism is in place to assign the
rating to ensure credit quality, besides an entry level scoring
system.
The liquidity risk is managed through studying structural
liquidity on a daily basis, which is being discussed in the
Funds and Investments Committee and reviewed every
fortnight(frst&thirdWednesdaysofeverymonth)byALCO/
Board. The interest rate risk is managed through monthly
interestratesensitivitystatementsandreviewedbyALCO/
Board.Themidoffce,directlyreportingtoRiskManagement
Department, monitors treasury transactions independently.
Prudential liquidity ratios are monitored periodically and
reportedtoALCO.
Operational risk is managed by using well established internal
control systems in day to day management processes and
by adopting various risk mitigating strategies. The risk
perceptions in various products / procedures are critically
analysed and corrective actions if required, are initiated.
UnderPillarIIi.e.,ICAAP,theBankidentifes,measuresand
manages the risks that are either not fully captured or not
at all captured under Pillar I and if necessary, makes an
additional provision of capital for such risks. The Capital
assessment for the next three years is also carried out based
onplannedbusinessprojections.
The Bank has in place a Disclosure Policy in line with the Pillar
IIIrequirementsofBaselIIframeworkandthedisclosuresare
made in the Banks website and Annual Report as prescribed
in the policy.
26
e ku o l al k/ ku i zc a/ ku e k l a i z
J e ' kf D r f L F kf r
s -i zoz - | -iln l-iln l-ii i|
n i i i||* i -lri
lii|
7877 1395 492 509 6827 1050
ll
8454 2013 284 605 5638 2816
--i
2379 844 97 212 2268 111
s
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z. -i os.o.zoz s.os.zoz s s
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i ,ii ; i l n liii i in ni r| i l-ln l-llin lii i - llrn i| liii
i in n| r
c h y s[ kki j h{ kk l f e f r
ii |ii l-ln s n ssr i nl-n | n| i ;| i ini - l-llin iil- r|
-n ii |ii i i -ini i i
i ii i, l | inl ii
|ii i l|ii i l-in, liln i ni-ni
li i lin r nii | illi , ir| ii
|ii iin| l l|iii i n ili-
r|
niiii -ii iin, n iini - -
ln -iii | n; ll-i i i--i iini, lli
iiiii - lri n - ii i-, iiiiili
ii lli- i n r inl l|ii ,
ii|ii i | |ii i|
i - ln i liili in ln-ir| li-i |
-|ii i
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n| ii; i i ili,i ili l-n| ii
i li- i ln- ir| ii |ii
ii i|
i i Annual Report 2011 - 12
51
Details of Attendance of the Directors at the Management Committee:
Name of Director (Sarvashree) period
Meetings held
during the period
of their tenure
Meetings
Attended
1. T M Bhasin 01.04.2011-31.03.2012 16 16
2. V RamaGopal 01.04.2011-31.12.2011 12 12
3.RajeevRishi 01.04.201131.03.2012 16 15
4.BRajKumar 01.01.2012 31.03.2012 4 4
5.CKRanganathan 01.04.201121.05.2011 2 Nil
6.SKaruppasamy 01.04.201130.05.2011 3 3
7.Dr.NKrishnaMohan 30.05.2011 31.03.2012 13 11
8.Prof.NarendraKumarAgrawal
12.04.201130.06.2011
09.07.2011 08.01.2012
3
9
2
4
9. Chintaman Mahadeo Dixit 09.07.2011 08.01.2012 9 9
10. M Jayanath
01.04.201130.07.2011
09.01.2012 31.03.2012
4
3
4
3
11.AmarjitChopra 29.08.2011 31.03.2012 10 9
12.SanjayMaken 09.01.2012 31.03.2012 3 3
a) Management Committee:
The Management Committee was constituted on September 08, 1990 and exercises such powers of the Board, as may be
delegatedtoitbytheBoardwiththeapprovaloftheCentralGovernmentafterconsultationwithReserveBankofIndia.
The Management Committee may exercise all the powers vested in the Board in respect of:
Sanctioning of credit proposals (funded and non-
funded);
Loanscompromise/write-offproposals;
Proposals for approval of capital and revenue
expenditure;
Proposalsrelatingtoacquisitionandhiringofpremises
including deviation from norms for acquisition and
hiring of premises;
Filingofsuits/appeals,defendingthemetc.;
Investments in Government and other approved
securities, shares and debentures of companies
including underwriting;
Donations;and
Any other matter referred to the Management
Committee by the Board
b) Audit Committee
The Audit Committee was constituted on October 13, 1995 and its terms of reference include the following:
Provide direction as also oversee the total audit
function of the Bank which impact the organization,
operationalisation and quality control of internal
auditandinspectionintheBankandfollow-uponthe
statutory/external audit of the Bank and inspections of
theReserveBankofIndia.
Review the internal inspection/audit function in the
Bank, with specifc focus on the follow-up on inter-
branch adjustment accounts, unreconciled long
outstandingentriesinInter-Bankaccountsandnostro
accounts, arrears in balancing of books at various
branches,fraudsandhouse-keeping.
ReviewquarterlyreportsfromtheComplianceOffcers
appointed in the Bank.
Follow-up on all the issues raised in the Long Form
Audit Report and interact with the external auditors
before the fnalization of the annual/semi-annual
fnancialaccountsandreports.
52
li zs , zooc i li - ~ | ini i, l-llin i iil- l ii |ii l-ln ii i
ii ni
ii, iii|lni, -|i | ll-n |ii ,
i ,ii l n lii i in iiiln - ii
ll-i | |ii i ii |ii in -r-i -ii
| |ii ,
i- ii |ii li- - iii ,
ii |ii | l-lii i iil- n r -n ii |ii
l-ni i liii |ii i nii i i -nn
r ln-ir|, s-ir| ili l-n| lii i |ii
i
l| i| i lni i i ni ni l ii
|ii ii ii |ii i i ,
inl ii |ii i - i - ni -iiln i,
inl ii |ii li | |ii i inl li
ii| | inni lln i,
ii -ii i ii |lni i i
l-n| llii in |-i n i ii | iii i
i ,
lin il-i i ii, ii ni ii
i, | ilni ii lii ;-il ii iiln
, l i - lrni ii iiln ii
ri ni r , i
-i- i l -- l| i| illi,
li-- ii lli- inii ,ii | ri,
y s[ kk i j h{ kk l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d sa
m i f L F kr
c SB d sa
1. | i- nii
01.04.201131.12.2011 8 7
2. i| ~li
01.04.201131.03.2012 14 14
3. |. i-i
01.01.2012-31.03.2012 6 6
4.-|n ii
29.08.2011 31.03.2012 10 10
5. ilnini i
01.04.2011-31.03.2012 14 10
6. i-|
01.04.201130.05.2011 2 2
7. i. i -ir
30.05.2011 31.03.2012 12 9
8. i. -i ni
01.04.201130.06.2011 3 2
9. lni- -ri |lin
01.07.2011 07.01.2012 6 6
10 . -i
07.01.2012 31.03.2012 5 5
l h t ksf [ ke i zc a/ ku l f e f r %
ili- i l-ln i n- s |, zoos i li ni ii| l-ln ii - l-llin iil- r
|n ili- i l- ~i ili- lrn lli ~i ili- iil- r, l |ln i i|ln ni i
| ~i ili- i l-ln (|i-|), il-n ni i l-ln (-|) i li ili- i l-ln (ii-|)
i ili- l-lni | - -iiln i|
l-ln il-i - l-llin l--ln r
o ii ili- -i, i i lil-n rn |lni i liili liiln i
o r lln i l ii ili- li (ni, iili, lii, |-ii i lii lrn) | |ln | nl-
n| r|
o l-n ii ii i ii i-ili rn ril i lrn ii ili- |-ii | |ii i -i|
o r i i- --i | lln, r i i- --i i -n ii ili- i,i il | nin| lln i|
i i Annual Report 2011 - 12
53
IntermsoftheresolutionoftheBoardofDirectorsdatedNovember23,2006,thescopeofreferenceoftheAuditCommittee
was enhanced to include the following:
Regular review of accounts, accounting policies,
disclosures;
Reviewofthemajoraccountingentriesbasedonexercise
of judgment by management and review of signifcant
adjustmentsarisingoutofaudit;
Qualifcationsinthedraftauditreport;
Establishingandreviewingthescopeoftheindependent
audit including the observations of the auditors and
review of the quarterly, half-yearly and annual fnancial
statements before submission to the Board;
Postauditdiscussionswiththeauditorstoascertainany
area of concern;
Establishing the scope and frequency of internal audit,
reviewing the fndings of the internal auditors and
ensuring the adequacy of internal control systems;
Compliance with Accounting Standards and Accounting
Policies of the Bank.
Compliancewithstockexchangerequirementsconcerning
fnancialstatements,totheextentapplicable;
Overseerelatedpartytransactionsi.e.,transactionsofthe
Bank of material nature, with promoters or management,
their subsidiaries or relatives etc., that may have potential
confictwiththeinterestsoftheBankatlarge;and
Such other matters as may from time to time be
required by any statutory, contractual or other regulatory
requirements.
Details of Attendance of the Directors at the Audit Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. V RamaGopal 01.04.201131.12.2011 8 7
2.RajeevRishi 01.04.201131.03.2012 14 14
3.BRajKumar 01.01.2012-31.03.2012 6 6
4.AmarjitChopra 29.08.2011 31.03.2012 10 10
5. Shaktikanta Das 01.04.2011-31.03.2012 14 10
6.SKaruppasamy 01.04.201130.05.2011 2 2
7.Dr.NKrishnaMohan 30.05.2011 31.03.2012 12 9
8.Prof.NarendraKumarAgrawal 01.04.201130.06.2011 3 2
9. Chintaman Mahadeo Dixit 01.07.2011 07.01.2012 6 6
10.SanjayMaken 07.01.2012 31.03.2012 5 5
c) Risk Management Committee:
Risk Management Committee was constituted on January 18, 2003. The functions of the Risk Management Committee
include the following:
TodevisethepolicyandstrategyforintegratedriskmanagementcontainingvariousriskexposuresoftheBankincluding
the Credit Risk.
Toco-ordinatebetweentheCreditRiskManagementCommittee(CRMC),theAssetLiabilityManagementCommittee
(ALMC)andOperationalRiskManagementCommittee(ORMC)andotherRiskCommitteesoftheBank.
TheresponsibilityoftheCommitteeinclude:
o Setting policies and guidelines for market risk measurement, management and reporting.
o Ensuringthatmarketriskmanagementprocesses(includingpeople,systems,operations,limitsandcontrols)satisfy
Banks policy.
o Reviewingandapprovingmarketrisklimits,includingtriggersorstop-lossesfortradedandaccrualportfolios.
o Appointmentofqualifedandcompetentstaff,ensuringpostingofqualifedandcompetentstaffandofindependent
market risk manager/s, etc.
54
t ksf [ ke i zc a/ ku l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k %
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d sa
m i f L F kr
c SB d sa
1. -| - i|
01.04.2011-31.03.2012 4 4
2. | i- nii
01.04.2011-31.12.2011 3 3
3. i| ~li
01.04.2011-31.03.2012 4 4
4.|. i-i
01.01.2012-31.03.2012 1 1
5. -. ii
29.07.2011 31.03.2012 3 3
6.-|n ii
07.01.2012 31.03.2012 1 1
7. lni- -ri |lin
29.07.2011 31.03.2012 3 3
8. l il- |
07.01.2012 31.03.2012 1 1
M h v kb ZV h j . ku hf r l f e f r Hkwr i wo Z i zkS| ksf x d h l f e f r %
iniln| l-ln -i, zooz i nl-n | n;|
iniln| l-ln i n- | iniln| inii i i i -- liilin -i; --i ii i|ln
ii | ii l li ni r|
i | iniln| l-ln i iil | i ||.|i.i;-||.||..c,s.oz.oos, zoo li zs.o.zo
l l n lii , liilii i i;-| i|ln l-ln i i i- li ni r|
v kb ZV h j . ku hf r l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k %
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d sa
m i f L F kr
c SB d sa
1. -| - i|
01.04.201107.01.2012 3 3
2. | i- nii
01.04.2011-31.12.2011 3 3
3 i| ~li
01.04.201131.03.2012 4 4
4.|. i-i
01.01.2012 31.03.2012 1 1
5. i. -i ni
01.04.201107.01.2012 3 2
6.-. ii
29.07.2011-31.03.2012 3 3
7. -|n ii
07.01.2012 31.03.2012 1 1
8. -i
07.01.2012 31.03.2012 1 1
9. lni- -ri |lin
07. 01.2012 31.03.2012 1 1
b Z x zkg d l so k l f e f r
nir i l-ln n-n z, zoo i nl-n | n; i|| nir i l-ln i - l-llin i| iil- r|
i- li lrni | ii l lillii ,lni |i i rn ,
niri i i i rn ,lni | |ii i
iin| l ,ii liiln ll-i i lii | |ii il | nir i i ln-i r| r|
i i Annual Report 2011 - 12
55
Details of Attendance of the Directors at the Risk Management Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. T M Bhasin 01.04.2011-31.03.2012 4 4
2. V RamaGopal 01.04.2011-31.12.2011 3 3
3.RajeevRishi 01.04.2011-31.03.2012 4 4
4.BRajKumar 01.01.2012-31.03.2012 1 1
5. M Jayanath 29.07.2011 31.03.2012 3 3
6.AmarjitChopra 07.01.2012 31.03.2012 1 1
7. Chintaman Mahadeo Dixit 29.07.2011 31.03.2012 3 3
8. Butchi Rami Reddy 07.01.2012 31.03.2012 1 1
d) IT Strategy Committee (erstwhile Technology Committee) :
TheTechnologyCommitteewasconstitutedonMarch11,2002.
TheTechnologyCommitteehasbeensetuptolookintothetechnologicalupgradationrequirementsoftheBankand
recommendastrategicplanwithclearlydefnedmilestones.
TheTechnologyCommitteeoftheBoardhasbeenrenamedasITStrategyCommitteeasperthedirections/guidelines
ofRBIvidecommunicationDBS.CO.ITC.BC.No.6/31.02.008/2010-11dated29.04.2011.
Details of Attendance of the Directors at the IT Strategy Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1.T M Bhasin 01.04.201107.01.2012 3 3
2. V RamaGopal 01.04.2011-31.12.2011 3 3
3RajeevRishi 01.04.201131.03.2012 4 4
4.BRajKumar 01.01.2012 31.03.2012 1 1
5.Prof.NarendraKumarAgrawal 01.04.201107.01.2012 3 2
6.MJayanath 29.07.2011-31.03.2012 3 3
7.AmarjitChopra 07.01.2012 31.03.2012 1 1
8.SanjayMaken 07.01.2012 31.03.2012 1 1
9. Chintaman Mahadeo Dixit 07. 01.2012 31.03.2012 1 1
e) Customer Service Committee
TheCustomerServiceCommitteewasconstitutedonAugust24,2004.ThefunctionsoftheCustomerServiceCommittee
include the following:
To look into the simplifcation of procedures and practices with a view to safeguarding the interest of common
persons;
Toreviewthesystemsinplaceforprovidingservicetothecustomers;and
To review the regulations and procedures prescribed by Reserve Bank of India that impinge on customer service of
banks.
56
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d as
m i f L F kr
c SB d sa
1. -| - i|
01.04.2011-31.03.2012 4 4
2. | i- nii
01.04.2011-31.12.2011 3 3
3. i| ~li
01.04.201131.03.2012 4 4
4.|. i-i
01.01.2012 31.03.20 12 1 1
5. ilnini i
01.04.2011-31.03.2012 4 2
6.-. ii
29.07.2011 31.03.2012 3 3
7. i. -i ni
29.07.2011 31.03.2012 3 2
8. l il- |
07.01.2012 31.03.2012 1 1
, Q f u n s kd ksa d h l f e f r l r d Zr k
nni l-ln | z, ss i nl-n | n; i|| nni l-ln ln-ir| - i - n| r i ln iil -i-i
i liin| i | |ii n| r| li l-ln | l-i|, nni -i-i iili |ii rn li - i -nn
| in| r|
l r d Zr k l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k %
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d sa
m i f L F kr
c SB d sa
1. -| - i|
01.04.2011-31.03.2012 4 4
2. | i- nii
01.04.2011-31.12.2011 3 3
3. i| ~li
01.04.201131.03.2012 4 4
4.|. i-i
01.01.2012-31.03.2012 1 1
5. ilnini i
01.04.2011-31.03.2012 4 3
6.i. i -ir
30.05.2011 31.03.2012 4 4
t h c M s e wY ; d h / kks[ kk/ kf M ; kas d ks e ku hV j d j u s g sr q f o ks" k l f e f r %
` i i li | iiiiili i -i|- rn ; l-ln i n- s | zoo i li ni ii|
c M +s e wY ; d h / kks[ kk/ kf M ; ksa d ks e ku hV j d j u s g sr q f o ' ks" k l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . kA
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d as
m i f L F kr
c SB d sa
1. -| - i|
01.04.2011-31.03.2012 4 4
2. | i- nii
01.04.2011-31.12.2011 3 3
3. i| ~li
01.04.2011-31.03.2012 4 4
4.|. i-i
01.01.2012-31.03.2012 1 1
5. ilnini i
01.04.2011-31.03.2012 4 3
6.i. -i ni
01.04.2011-30.06.2011 1 1
7. lni- -ri |lin
29.07.2011-07.01.2012 2 2
8. -i
07.01.2012-31.03.2012 1 1
, p ' ks; j v ar j . k l f e f r %
;l (ii i -i) ll-, sss, ll- i z i, s -i zoo/ i | i ni l-ln nl-n |
n; | r l-ln |-l-li, |-l-li il rn ii li n| r|
x zkg d l so k l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k %
i i Annual Report 2011 - 12
57
Details of Attendance of the Directors at the Customers Service Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. T M Bhasin 01.04.2011-31.03.2012 4 4
2. V RamaGopal 01.04.2011-31.12.2011 3 3
3.RajeevRishi 01.04.201131.03.2012 4 4
4.BRajKumar 01.01.2012 31.03.2012 1 1
5. Shaktikanta Das 01.04.2011-31.03.2012 4 2
6.MJayanath 29.07.2011 31.03.2012 3 3
7.Prof.NarendraKumarAgrawal 29.07.2011 31.03.2012 3 2
8. Butchi Rami Reddy 07.01.2012 31.03.2012 1 1
f) Committee of Directors (Vigilance)
The Vigilance Committee was constituted on January 12, 1991. The Vigilance Committee meets once in a quarter to
review any outstanding disciplinary cases and departmental enquiries. The observation of the Vigilance Committee is put
up to the Board in the half yearly review of vigilance matters.
Details of Attendance of the Directors at the Vigilance Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. T M Bhasin 01.04.2011-31.03.2012 4 4
2. V RamaGopal 01.04.2011-31.12.2011 3 3
3.RajeevRishi 01.04.201131.03.2012 4 4
4.BRajKumar 01.01.2012-31.03.2012 1 1
5. Shaktikanta Das 01.04.2011-31.03.2012 4 3
6.Dr.NKrishnaMohan 30.05.2011 31.03.2012 4 4
g) Special Committee for Monitoring of Large Value Frauds:
TheCommitteewasconstitutedonJanuary31,2004formonitoringfraudsof`1 crore and above.
Details of Attendance of the Directors at the Special Committee for Monitoring of Large Value Frauds
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. T M Bhasin 01.04.2011-31.03.2012 4 4
2. V RamaGopal 01.04.2011-31.12.2011 3 3
3.RajeevRishi 01.04.2011-31.03.2012 4 4
4.BRajKumar 01.01.2012-31.03.2012 1 1
5. Shaktikanta Das 01.04.2011-31.03.2012 4 3
6.Prof.NarendraKumarAgrawal 01.04.2011-30.06.2011 1 1
7. Chintaman Mahadeo Dixit 29.07.2011-07.01.2012 2 2
8.SanjayMaken 07.01.2012-31.03.2012 1 1
h) Share Transfer Committee:
Pursuant to Regulation 2A of Indian Bank (Shares and Meetings) Regulations, 1999, the Share Transfer Committee of
the Bank was constituted on March 13, 2007. The Committee considers requests for rematerialization, dematerialization,
etc.
58
' ks; j v ar j . k l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
n kSj ku v k; ksf t r
c SB d sa
m i f L F kr
c SB d sa
1. | i- nii
01.04.2011-31.12.2011 1 1
2. i| ~li
01.04.201131.03.2012 1 1
3. |. i-i
01.01.2012 31.03.2012
i i
4.i. -i ni
29.07.2011-31.03.2012 1 1
5. lni- -ri |lin
07.01.2012 31.03.2012
i i
6.l il- |
07.01.2012 31.03.2012
i i
v kb Z ' ks; j / kkj d ksa @ f u o s' kd ksa d h f ' kd k; r l f e f r %
iiii nii lii | liini lii i i ii rn zs , zooc ii l-ln nl-n | n; i ; l-ln
i i l ii ni, iiii, ili li- in r| ri i l| i | liini n |l-n r| r, l~
l, l| i ii i li | liini lii i i i| iil- r|
' ks; j / kkj d ksa @ f u o s' kd ksa d h f ' kd k; r l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s n kSj ku
v k; ksf t r c SB d as
m i f L F kr c SB d sa
1. | i- nii
01.04.201131.12.2011 3 3
2. i| ~li
01.04.2011-31.03.2012 4 4
3. |. i-i
01.01.2012-31.03.2012 1 1
4.i. -i ni
29.07.2011-31.03.2012 3 2
5. lni- -ri |lin
07.01.2012 31.03.2012 1 1
6.l il- |
07.01.2012 31.03.2012 1 1
t s u ke kad u l f e f r
iin| l ||i| ||../,zs.ss.oo,zoo/os l.o , zoo/ - l n liilii i ,
iiili - li l i-i i ii i i ln --- i liii iii
ln iii| i i lii rn l o, zoo/ i i-i l-ln nl-n | i|| l-llin lii ii ; -; so, zo i
nl-n li ni ii|
. iin i il-n| li (l-ln i i)
z. iin| l il-n| li (iil lii -ln ii)
s. ii li (iil lii -ln ii)
u ke kad u l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s n kSj ku
v k; ksf t r c SB d as
m i f L F kr
c SB d sa
1. ilnini i
30.05.2011 to 31.03.2012 1 1
2. i. i -ir
30.05.2011 to 31.03.2012 1 1
3. | i- nii
30.05.2011 to 31.12.2011 1 1
d s i kf j J f e d l f e f r %
zs -i, zoo/ i ill- l-ln nl-n | n| i|| iin i ,ii ; i - i n l-ii i i li i
ii li i ill- ii i -r rn | lnln i inni li ini r|
nii -n lii i i; i| ill- i inni r| li ini r, r iin i liilii i i ,
l-ln | -i - iil- ri l - i~ i inni li ini r| i-|n (i i lli iii) ii, s/o
i / | ini i - - iin| l i-i | i ,ii l n lii i niii
i ii -r rn i-n lrn ill- i inni li ini r|
i i Annual Report 2011 - 12
59
Details of Attendance of the Directors at the Share Transfer Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. V RamaGopal 01.04.2011-31.12.2011 1 1
2.RajeevRishi 01.04.201131.03.2012 1 1
3.BRajKumar 01.01.2012 31.03.2012 Nil Nil
4.Prof.NarendraKumarAgrawal 29.07.2011-31.03.2012 1 1
5. Chintaman Mahadeo Dixit 07.01.2012 31.03.2012 Nil Nil
6.ButchiRamiReddy 07.01.2012 31.03.2012 Nil Nil
i) Shareholders / Investors Grievance Committee :
The Committee was constituted with effect from November 23, 2006 to carry out such functions for the redressal of
Shareholdersandinvestorscomplaints,includingbutnotlimitedtotransferofshares,non-receiptofdividends,Annual
Report and any other grievance that a shareholder or investor of the Bank may have against the Bank.
Details of Attendance of the Directors at the Shareholders / Investors Grievance Committee
Name of Director
(Sarvashree)
period
Meetings held during the
period of their tenure
Meetings
Attended
1. V RamaGopal 01.04.201131.12.2011 3 3
2.RajeevRishi 01.04.2011-31.03.2012 4 4
3.BRajKumar 01.01.2012-31.03.2012 1 1
4.Prof.NarendraKumarAgrawal 29.07.2011-31.03.2012 3 2
5. Chintaman Mahadeo Dixit 07.01.2012 31.03.2012 1 1
6.ButchiRamiReddy 07.01.2012 31.03.2012 1 1
j) Nomination Committee:
The Nomination Committee was constituted on December 01, 2007 by the Bank as per the guidelines of Reserve Bank of
India contained in DBOD.Lr. BC.No.47/29.39.001/2007-08 dated November 01, 2007 for the purpose of carrying out due
diligence to determine the ft and proper status of the persons who fle their nominations for election as Shareholder
DirectoroftheBank.ItwasreconstitutedonMay30,2011withthefollowingDirectors:
1. GovernmentofIndiaNomineeDirector(ChairmanoftheCommittee).
2. RBINomineeDirector(withspecialpermissionfromRBI)
3. ExecutiveDirector(withspecialpermissionfromRBI).
Details of Attendance of the Directors at the Nomination Committee
Name of Director
(Sarvashree)
period
Meetings held during the
period of their tenure
Meetings
Attended
1. Shaktikanta Das 30.05.2011 to 31.03.2012 1 1
2.Dr.NKrishnaMohan 30.05.2011 to 31.03.2012 1 1
3. V RamaGopal 30.05.2011 to 31.12.2011 1 1
k) Remuneration Committee :
The Remuneration Committee was constituted on March 29, 2007. The Chairman and Managing Director and Executive
Directors are being paid remuneration and reimbursement of travelling and halting expenses as per the rules framed by
GovernmentofIndiainthisregard.
The Part-Time Non-Offcial Directors are not being paid any other remuneration, except Sitting Fees for attending the
meetingoftheBoard/CommitteeaspertheguidelinesofGovernmentofIndia.Theremunerationincludingtravellingand
haltingexpensestoPart-TimeNon-OffcialDirectorsisbeingpaidasdecidedbytheCentralGovernmentinconsultationwith
RBIfromtimetotimeintermsofClause17ofNationalisedBanks(ManagementandMiscellaneousProvisions)Scheme,
1970.
60
i kf j J f e d l f e f r e sa f u n s' kd ksa d h m i f L F kf r d s f o o j . k %
f u n s' kd d k u ke l o ZJ h v o f / k
m u d h d k; kZo f / k d s
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c SB d as
m i f L F kr
c SB d sa
1. ilnini i
01.04.2011-31.03.2012 1 1
2. i-|
01.04.201130.05.2011 1 1
3. | nii
23.04.201130.06.2011 1 1
4.i. -i ni
01.04.201130.06.2011
01.07.2011 31.03.2012
1
i
1
i
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- ill- i li ini r| ill- li i ; iil lii i -n li lin i-ir ilii i
li | li ni r| (`iii-)
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2. i| ~li ii li
12.58 3.25 15.83
3. | i-i ii li
3.08 - 3.08
4.| i- nii ii li
12.79 6.50 19.29
5. i--ii * ii li
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zs, zoos
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r l-ln i il lii i li lin i-ir inni iii iin i ,ii liiln -ii - iii
|iii| i ii ,iil lii li i -~iln n| r|
i i Annual Report 2011 - 12
61
TheCommitteeevaluatestheperformanceoftheBank/Whole-timeDirectorsfortheyearunderreviewbasedonasetof
parametersasfxedbyGovernmentofIndiaforthepurposeofpaymentofperformance-linkedincentivestotheWhole-
time Directors.
Details of Attendance of the Directors at the Remuneration Committee
Name of Director
(Sarvashree)
period
Meetings held
during the period
of their tenure
Meetings
Attended
1. Shaktikanta Das 01.04.2011-31.03.2012 1 1
2.SKaruppasamy 01.04.201130.05.2011 1 1
3.CKRanganathan 23.04.201130.06.2011 1 1
4.Prof.NarendraKumarAgrawal 01.04.201130.06.2011
01.07.2011 31.03.2012
1
Nil
1
Nil
Remuneration of Directors:
TheChariman&ManagingDirectorandExecutiveDirectors(threewholetimedirectors)arebeingpaidremunerationby
wayofsalaryasperrulesframedbytheGovernmentofIndia.ThedetailsofremunerationandthePerformanceLinked
IncentivepaidtotheWhole-TimeDirectorsaredetailedbelow: ( ` in lacs)
Name of Director
(Sarvashree)
Designation
Salaray,
allowance, etc
performance
Linked Incentive
Total
1. T M Bhasin Chairman & Managing Director 15.04 8.00 23.04
2.RajeevRishi ExecutiveDirector 12.58 3.25 15.83
3.BRajKumar ExecutiveDirector 3.08 - 3.08
4.VRamaGopal Ex-ExecutiveDirector 12.79 6.50 19.29
5. A S Bhattacharya * Ex-ExecutiveDirector - 3.25 3.25
*IncentivepaymentsmadeinproportiontohisrespectivetenureintheBank.
DirectorsotherthanChairmanandManagingDirector,ExecutiveDirectors,GovernmentandRBINomineeDirectorsare
entitled to sitting fees of `10,000/-and` 5,000/-(enhancedfrom`5,000/-and`2,500/-,respectively)witheffectfrom
October18,2011forattendingBoardmeetingsandmeetingsoftheCommitteesofBoardasperGovernmentofIndia
guidelines.
4. General Body Meetings:
The details of previous Annual General Meetings (AGM) of shareholders of the Bank are as follows:
Annual General Meeting Day & Date Time Venue
First Wednesday,
June 27, 2007
11.00 a.m. IMAGE,MRCNagar
RajaAnnamalaipuram
Chennai-600028.
Second Monday,
June 30, 2008
11.00 a.m. IMAGE,MRCNagar
RajaAnnamalaipuram
Chennai-600028.
Third Monday,
June 29, 2009
10.00 a.m. IMAGE,MRCNagar
RajaAnnamalaipuram
Chennai-600028.
Fourth Thursday
June 10, 2010
10.30 a.m. IMAGE,MRCNagar
RajaAnnamalaipuram
Chennai600028.
Fifth Wednesday
June 29, 2011
10.30 a.m. IMAGE,MRCNagar
RajaAnnamalaipuram
Chennai600028.
62
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lnlni i| ni r il | i;- (www.indianbank.in) i| i r|
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li, - i ili i-i - i -ii zs, zoz
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;- iini, -i| n, ii ii--,
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l-n| i zoz
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i-i| i- in | ln- ni|i zs zoz
iiiii inni | ni|i ini-| ili i-i - li so li
i| ili i-i - - iin i i lli- iliili -i ii ,ii liiln l ii |l--
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i i Annual Report 2011 - 12
63
IntheFifthAnnualGeneralMeeting,resolutionsapprovingFollow-onPublicOfferforissueof6.14croreEquityShares
of `10/-eachatapremiumtobedecidedbytheBankandconversionofNon-CumulativePreferenceShareCapitalof
`400croreintoEquityShareCapitalsubjecttoapprovalbyGovernmentofIndiaandotherregulatoryauthorities,were
passed as special resolutions.
5. Disclosures
a. Otherthanthoseinthenormalcourseofbankingbusiness,theBankhasnotenteredintoanymateriallysignifcant
transactions with its Promoters / Directors, Management, their subsidiaries, or relatives, etc. that may have potential
confictwiththeinterestsoftheBankatlarge.
b. The Bank has complied with all the requirements regarding capital market related matters and has not been imposed
anypenaltyorstricturebythestockexchangesorSEBIoranyotherstatutoryauthorityduringlastyear.
c. Mandatory and non-mandatory requirements:
The Bank has complied with all the applicable mandatory requirements as provided in Clause 49 of the Listing
agreemententeredintowiththeStockExchanges.Theextentofimplementationofnon-mandatoryrequirementsis
furnished as under:
Requirement Compliance
A non-executive Chairman should be entitled to maintain a
Chairmans Offce at the Banks expense and also allowed
reimbursement of expenses incurred in performance of his
duties.
TheBankischairedbyanExecutiveChairmanappointed
by the Government of India and the reimbursement of
expenses incurred by him are in terms of Government of
Indiaguidelines.
The Bank should set up a remuneration committee to
determine on their behalf and on behalf of the shareholders
withagreedtermsofreference,theBankspolicyonspecifc
remuneration packages for executive directors including
pension rights and any compensation payment.
Remuneration Committee of the Board has been formed
to determine the remuneration package in terms of the
GovernmentofIndiaguidelines.
Whistle Blower policy: The Bank may establish a mechanism
for employees to report to the management concerns about
unethical behaviour, actual or suspected fraud or violation of
the Banks code of conduct or ethics policy and provide for
adequate safeguards against victimization of employees.
The Bank has put in place a Whistle Blower policy.
postal Ballot The business transacted did not require any special
resolution to be put through postal ballot.
6. Means of Communication
InformationrelatingtoBankwillbemainlyissuedthroughtheAnnualReportwhichincludestheDirectorsReport,Auditors
Report, Cash Flow Statements, Consolidated Audited Accounts, etc. The shareholders will also be intimated on the
quarterly, half yearly and annual performance through individual communication, publication in newspapers, intimation
toStockExchanges(NSE&BSE),pressrelease,emailwhereverpossible,whichisalsoavailableonthewebsiteofthe
Bank. The Bank issues press release on various operational matters such as revision in interest rates, launching of new
products, opening of new branches, etc. which are also available on the website of the Bank (www.indianbank.in).
7. General Shareholder Information
Board Meeting for considering accounts of
IndianBankanddeclarationofdividend
May 11, 2012
Date, Time & Venue of AGM
June 29, 2012.
10.00 a.m.
IMAGEAuditorium,MRCNagar,RajaAnnamalaipuram,
Chennai-600028.
Financial Year 2011-12
Book closure dates June 27, 2012 to June 29, 2012 (both days inclusive)
Dividendfor2011-12
Equitysharesat` 7.50 (75%) per share
Preference shares at 10% p.a.
Lastdateofreceiptofproxyforms June 23, 2012
Date of payment of Dividend Within 30 days from the date of the ensuing Annual General Meeting
64
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l- i l-ii r|
e kad L V kWd , D l p sat L V kWd f L i d ksM
1. ; ;l-| INDIANB
2. | ; ;l-| INDIANB/532814
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iliili lli iiii i i rn | i-i-|, -ri i i i lii| - il-n li ni
r| | ni --, | l i --i i ii l n ll--n ln--i lli iiii iii i
lii| - il-n li ni r|
l h- ' ks; j g L r kar j . k v kSj f u o s' kd ksa d h f ' kd k; r ksa d k f u o kj . k %
iiii iii i li , lii | liini i lii nii ii i|i lin iii
i ii l - l-i ii- l l., i i r-nini - - ln li r| lii | lii
l, | liin l-in ii- ii - i| -|i | in| r|
li, ii , liini i i ni i r-nini - i i i l-llin ni n r
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0 1 - 0 4 - 2 0 1 1 d ks y af c r 0 1 - 0 4 - 2 0 1 1 l s 3 1 - 0 3 - 2 0 1 2 r d i zkI r f u o kj . k f d , x , 3 1 - 0 3 - 2 0 1 2 d ks y af c r
0 49 49 0
M h- 3 1 - 0 3 - 2 0 1 2 d ks ' ks; j / kkf j r k i SV u Z %
3 1 - 0 3 - 2 0 1 2 d ks 1 i zf r ' kr r F kk m l l s v f / kd ' ks; j / kkj . k d j u so ky s ' ks; j / kkj d ksa d h l wp h %
l a- ' ks; j / kkj d ksa d k l ao x Z / kkf j r ' ks; j ksa d h l a[ ; k d qy / kkf j r k d s l kF k i zf r ' kr
1.
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2.
iin| | |-i ln-
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3.
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l--l-n ii ||
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3 1 - 0 3 - 2 0 1 2 r d d qy f o n s' kh / kkf j r k
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39287504 9.14
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i i Annual Report 2011 - 12
65
a. Listing on Stock Exchanges
The Equity Shares of the Bank are listed with the National Stock Exchange of India Limited and the Bombay Stock
ExchangeLimitedwitheffectfromMarch01,2007.TheScripcodesoftherespectiveStockExchangeareasunder:
No. Stock Exchange Stock Scrip Code
1. NSE Equity INDIANB
2. BSE Equity INDIANB/532814
TheBankhaspaidthelistingfeesfortheyear2011-12tothestockexchanges.
b. Compliance Offcer(s)
ShriRRavi,GeneralManagerwastheComplianceOffcertillMay09,2011.ShriAKamatchi,GeneralManagerhasbeen
designatedasComplianceOffcerfromMay10,2011forcomplyingwithvariousprovisionsofSEBIandotherstatutory
authorities.Shri.A.GanesaRathnam,CompanySecretaryhasbeendesignatedastheComplianceOffcerforcomplying
withvariousprovisionsofListingAgreemententeredintowiththeStockExchanges.
c. Share Transfer & Redressal of Investors Grievances:
The Bank has appointed M/s Cameo Corporate Services Ltd., Chennai, as the Share Transfer Agent for recording of
shareholders requests, resolution of investors grievances amongst other activities connected with the issue of shares.
Fortheconvenienceofinvestors,grievances/complaintsfromthemarealsoacceptedattheBanksCorporateOffcein
Chennai.
The investors may lodge their requests / complaints either with the Share Transfer Agent or with the Bank at the following
addresses:
CameoCorporateServicesLtd.
Unit:IndianBank
Subramanian Building
1, Club House Road
Chennai600002.
Tel:(9144)28460718
Fax:(9144)28460129
Email:investor@cameoindia.com
Company Secretary
IndianBank,CorporateOffce
InvestorServicesCell,Wing2C,2ndFloor
254-260,AvvaiShanmugamSalai
Royapettah,Chennai600014
Telephone:(9144)28134076
Fax:(9144)28134075
Email:investors@indianbank.co.in
Number of Complaints received, resolved and pending:
Thedetailsofcomplaintsreceivedandresolvedduring2011-12andpendingason31.03.2012areasfollows:
pending as on 01.04.2011 Received from 01.04.11 to 31.03.12 Resolved pending as on 31.03.12
0 49 49 0
d. Shareholding pattern as on 31.03.2012:
List of shareholders holding shares 1% and above as on 31.03.2012:
No. Name of the Shareholders No. of shares held % to total holding
1. GovernmentofIndia 343820000 80.00
2. LifeInsuranceCorporationofIndia 10415499 2.42
3. HDFCStandardLifeInsuranceCompanyLimited 7532677 1.75
4. Stichting Pensionenfonds ABP 4594700 1.07
Total foreign holding as on 31.03.2012:
No. Category of Shareholders No. of shares held % to total holding
1. ForeignInstitutionalInvestors 38926526 9.06
2. NRIs 360978 0.08
T o t a l 39287504 9.14
66
3 1 - 0 3 - 2 0 1 2 r d ' ks; j / kkf j r k d k f o r j . k
l ao x Zo kj %
l a- l ao x Z / kkf j r ' ks; j ksa d h l a[ ; k j kf ' k ( ` ) ' ks; j / kkf j r k d k i zf r ' kr
1.
iin i
343820000 3438200000 80.00
2.
l-n| -ii (|,i -ii)
11471862 114718620 2.67
3.
- i -|i;
8515350 85153500 1.98
4.
ii- li
16049396 160493960 3.73
5.
i;i;
38926526 389265260 9.06
6.
li| ril~ ;-il
10986866 109868660 2.56
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lii-
532.04 758.60 1630.83 1436.91 1160.19 1034.94 97.42 64.55 3420.48 3295.00
il-n 1201.60 641.75
linn ii 2218.88 2653.25
nii lrn
i-|
i 0.04 3.49
i 71.61 13.77
iiii ii,
ril 524.62 925.09
l ii 0.00 0.00
ii| 1765.83 1745.41
i| il-ni 0.00 0.00
il-n
il-ni 40164.51 36028.08 58731.11 49726.33 42773.36 35996.50 62.18 153.72 121904.64
il-ni -241.54 -57.48
i| ni 141489.62 121847.16
il-n ni
37544.76 32581.22 52745.33 45378.71 38207.71 32365.52 -38.47 -44.93 110280.52
ni 13030.29 11566.62
ni 141489.62 121847.16
Hkkx c h & HkkSx ksf y d [ k. M
n s' kh v ar j kZ" V h; d qy
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
j kt L o 13179.55 10369.66 242.88 181.16 13422.43 10550.82
v kf L r ; ka 135729.69 117503.06 5759.93 4344.10 141489.62 121847.16
ri -i i- i r| r, i| i i i| il-ni iii iiln li ni r| ri i| i ri, ls i ii i
-lrn li ni r|
i i Annual Report 2011 - 12
177
(` in crore)
Business
Segments
Treasury
Corporate/
Wholesale Banking
Retail Banking
Other Banking
operations Total
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Result 532.04 758.60 1630.83 1436.91 1160.19 1034.94 97.42 64.55 3420.48 3295.00
Unallocated
expenses
1201.60 641.75
Operating
Proft 2218.88 2653.25
Minority
Interest 0.04 3.49
Other
unallocable
Income 71.61 13.77
Income Taxes 524.62 925.09
Extraordinary
Proft / Loss 0.00 0.00
Net Proft 1765.83 1745.41
Other
information 0.00 0.00
Segment
Assets 40164.51 36028.08 58731.11 49726.33 42773.36 35996.50 62.18 153.72 141731.16 121904.64
Unallocated
assets -241.54 -57.48
Total assets 141489.62 121847.16
Segment
Liabilities 37544.76 32581.22 52745.33 45378.71 38207.71 32365.52 -38.47 -44.93 128459.33 110280.52
Unallocated
liabilities
13030.29 11566.62
Total
liabilities 141489.62 121847.16
Part B Geographic Segments
Domestic International Total
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Revenue 13179.55 10369.66 242.88 181.16 13422.43 10550.82
Assets 135729.69 117503.06 5759.93 4344.10 141489.62 121847.16
Segmental expenses have been apportioned on the basis of segmental assets, wherever direct allocation is not possible.
Previous year fgures have been re-grouped wherever necessary.
178
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s.z v u q" kax h d ai u h %
9 - 2 - 1 b aM c Sad e p sZaV c Saf d ax l f o Zl st f y -
e q[ ; i zc a/ kd h; d kf e Zd
| | ni, l- ii| li (o.o.zo zc.or.zo)
| ilri| i, i ii| li (zc.or.zo s.os.zoz)
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9 - 2 - 2 b aM Q aM e Su st e saV f y f e V sM
e q[ ; i zc a/ kd h; d kf e Zd
| -| - ll i, i li
i ii z.o ii (ls i `z.o ii) ill- i inni li ni|
s.s lin il-i i lln n- r i ; ii s ini s i i; -|i lin r| r| in, s
ini r i , nir i - i i - i lin r| r|
1 0 - i V ~V s , , l 1 9
1 0 - 1 e wy l aL F kk
--,li iii | n; -l-ni | ;sii |n, i r| lnln li,--i li lii i -
| nii i l-i ii |i -ii ini r|
1 0 - 2 v u q" kax h d ai f u ; ka
1 0 - 2 - 1 b aM c Sad e p sZaV c Saf d ax l f o Zl st f y -
-- l n il-ni i - |, ii l l lii-- -- ini r| i | -iln , n i
lii-- -- nrn, i n- inni l-n r (`iii -)
s.os.zoz i s.os.zo i
i l --i inni
50.11 78.09
n- --i inni i li r|
0.00 55.70
i i n i i -
0.00 82.90
i i i
0.00 27.03
11. i zf r ' ks; j v t Zu , , l 2 0
f o o j . k
2011-12 2010-11
;l-| i iii rn i i l ii (.i -)
1765.83 1698.92
;l-| ii | iiln in i
429770000 429770000
- ln i nii - li ri
` 40.01 ` 39.53
ln ;l-| i ln -~
` 10.00 ` 10.00
i i Annual Report 2011 - 12
179
9. RELATED PARTY DISCLOSURES (AS 18)
9.1 PARENT
Key Managerial Personnel:
Shri. T M Bhasin Chairman & Managing Director
Shri V RamaGopal Executive Director (upto 31.12.2011)
Shri Rajeev Rishi Executive Director
Shri B Raj Kumar Executive Director (from 01.01.2012)
Remuneration paid to Key Management Personnel during the year ` 64.49 lakhs (previous year is ` 58.52 lakhs)
9.2 SUBSIDIARY COMPANY :
9.2.1 INDBANK MERCHANT BANKING SERVICES LTD.
Key Managerial Personnel:
Shri G Rangarajan, President & Wholetime Director (01.4.2011 to 26.05.2011)
Mr.Banabihari Panda, President & Wholetime Director (from 26.05.2011 to 31.03.2012)
Remuneration paid to Key Management Personnel during the year is ` 9.58 lakhs (previous year is `18.13 lakhs)
9.2.2 INDFUND MANAGEMENT LTD.
Key Managerial Personnel:
Sri A T M Philip Joseph - Managing Director
Remuneration Paid to Key Managerial Personnel during the year is ` 2.40 lakhs (previous year is ` 2.40 lakhs)
9.3 Other related parties are State controlled Enterprises and hence no disclosures are required as per paragraph 9 of AS 18.
Further, in terms of paragraph 5 of AS 18, transactions in the nature of banker-customer relationship are not required to
be disclosed.
10. Leases (AS 19)
10.1 PARENT
The properties taken on lease/rental basis are renewable/ cancelable at the option of the Bank. The Banks liabilities in
respect of disputes pertaining to additional rent/ lease rent are recognized on settlement or on renewal.
10.2 SUBSIDIARY COMPANY:
10.2.1 INDBANK MERCHANT BANKING SERVICES LTD
In case of assets taken on lease
The company has operating leases for offce premises at various locations with the Parent. The future minimum
payments required under non-cancellable operating leases at year-end are as follows:
( ` in lakhs )
As on
31.03.2012
As on
31.03.2011
Lease payments for the year 50.11 78.09
Minimum Lease payments: Not later than one year 0.00 55.70
Later than one year but not later than fve years 0.00 82.90
Later than fve years 0.00 27.03
11. EARNINGS PER SHARE (AS 20)
Particulars 2011-12 2010-11
Net Proft after tax available for equity shareholders (` ` Crore)
1765.83 1698.92
Weighted Average Number of Equity Shares 429770000 429770000
Basic & Diluted Earning Per Share ` 40.01 ` 39.53
Nominal value per Equity Share ` 10.00 ` 10.00
180
1 2 - l e sf d r f o Rr h; f o o j . k , , l 2 1
-ln l-n| li iin| | iii -ii (i;|i;) ,ii i| ii -i ( z) -ln l-n| lii i -ln l-n|
lii i ni iin| l ,ii i| liilii - l n r|
1 3 - v k; i j d j ksa d s f y , y s[ kkd j . k , , l 2 2
1 3 - 1 e wy l aL F kk
|-|(i-ilnn il-ni) , |-| (i-ilnn ni) - i- l- i r
M hV h, @ M hV h, y l a? kV d
(`ii -)
l a? kV d
31.03.2012 31.03.2011
i-ilnn il-ni
. inni,l--i;i -, nii i iii
113.54 129.29
z. --i ~ii
0.00 0.56
d qy & M hV h,
113.54 129.85
i-ilnn ni
. l-i il-ni -~ri
40.39 44.14
z. i| lnilni i
188.98 149.97
s. -- iin - i| n; il-ni rn iii
333.52 291.82
. lii l
*0.00 52.33
d qy & M hV h, y
562.89 538.27
f u o y M hV h, @ M hV h, y
(449.35) (408.43)
*i lil-,sc | iii sc()(viii) nn n ii | n; -i n| l i-ilnn ni r n i ; iii r| li ni r i l ; l
i li lii-- -ii| n -ii ni r |
1 3 - 2 v u q" kax h d ai f u ; ka
1 3 - 2 - 1 b aM c Sad e p sZaV c Saf d ax l f o Zl st + f y -
i-ilnn l l-n, ni - i- l- i r |
i-ilnn (`)
s.os.zoz i s.os.zo i
il-n ni il-n ni
i) -~ riln il-ni - - i n
36930816 37522039
ii) ii ~ii | l iii
90644827 92901899
iii)
2512443 2008596
56226454 57388456
1 3 - 2 - 2 b aM c Sad g km f l ax f y f e V sM
il | i i l, - l i , ii lin - ~r i i n i|n ril i , l iii i-ilnn il-n r| -ii ni r |
| i liin liii i ssszooo l, i lrn, .sz i | -in i i| r| iii nli il-ni
i li , i i-| riln lii i, i - rii i i, -in ii ni r| | ; -in i
lni li r i -i| -i ii -i | i li r|
| liii i zooroc i -, i liin s.oz ii | -in i| r, l l | i -|i -i | i
l i; iii r| li ni r|
| | | lri i i i| z.sr i r|
i i Annual Report 2011 - 12
181
12. CONSOLIDATED FINANCIAL STATEMENT (AS 21)
The consolidated fnancial statements are prepared in accordance with the Accounting Standard (AS 21). Consolidated
Financial Statements issued by the Institute of Chartered Accountants of India (ICAI) and the guidelines issued by the
Reserve Bank of India on preparation of Consolidated Financial Statements.
13. ACCOUNTING FOR TAXES ON INCOME (AS 22)
13.1 PARENT
The major components of DTA (Deferred Tax Assets) / DTL (Deferred Tax Liabilities) are as follows:
DTA / DTL components
(` in Crore)
Components 31.03.2012 31.03.2011
Deferred Tax Assets
1. Liabilities provision allowable on payment / crystallization 113.54 129.29
2. Staff welfare expenses 0.00 0.56
TOTAL- DTA 113.54 129.85
Deferred Tax Liabilities
1. Depreciation on Fixed Assets 40.39 44.14
2. Interest on Government securities 188.98 149.97
3. Provision for Written-off Accounts 333.52 291.82
4. Special Reserve *0.00 52.33
TOTAL DTL 562.89 538.27
NET DTA/ DTL (449.35) (408.43)
* No provision for Deferred Tax Liability on deduction claimed under Section 36(1)(viii) of the Income Tax
Act, 1961 has been made as the same is considered as permanent difference consequent to the decision of the
Bank not to withdraw the reserve.
13.2 SUBSIDIARY COMPANY:
13.2.1 INDBANK MERCHANT BANKING SERVICES LTD
The major components of deferred tax asset/liability are as below:
Deferred Tax (` )
As on 31.3.2012 As on 31.3.2011
Asset Liability Asset Liability
i) Timing difference in depreciable assets 36930816 37522039
ii) Provision for Bad debts and NPAs 90644827 92901899
iii) Others 2512443 2008596
Total 56226454 57388456
13.2.2 INDBANK HOUSING LTD
a. The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been
considered as deferred tax asset on the ground of prudence
b. The Income Tax Department has sent a demand notice for `4.32 crores for the assessment year 1999-00 including
interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per
the NHB directives, could not be recognised as income. The Company has contested the demand and fled an appeal
before the Honble Madras High Court.
c. In respect of the Assessment year 2005-06 Income Tax department has raised a demand of `19.02 Lakhs for which the
company has fled appeal before the commissioner of Income Tax and is hopeful of succeeding in the appeal and hence
no provision for tax has been considered necessary.
d. The refund receivable as per books of the Company is ` 2.85 crores.
182
1 3 - 2 - 3 b aQ aM e su st e saV f y f e V sM
v kL F kf x r d j n s; r k f u o y
i-ilnn ll-ni , nii i li l-ii r
-i zoz n -i zo n
i-ilnn ni
r| i l-n| r| - -~ri i - n ` 20067/- ` 21447/-
ii -n (|) ` 20067/- ` 21447/-
i-ilnn ni ()
i-ilnn ll-ni (|) i i
i-ilnn ni (l) ( |) ` 20067/- ` 21447/-
1 4 - , , l 2 4 d s v Ur x Zr i zd V hd j . k v i s{ kk, a & c an i f j p ky u
b aM c Sad e p sZaV c Saf d ax l so k, a f y f e V sM d ai u h l ss/ in r | ll- - lli iiiln liii i li ii
i i~ iiiln liii i i li li ii| l ss/ n ln-i lli iiiln -i | lin li -in
ri n i| i n r| il -ii| -ii | in| i ii | n; -ii| -ii i i| i ii li ini r, |
in| l i-|n - -i iin - ni i | iin| l || - |i
li i | -ln in | r| | | ll-i ,ii lln r|
ii ii i i i -ii, n-i-- i i inl l-n| lil-n ii| i n r iil- i - rii ni r|
lil-n i| ii i i n|i l i i li (lli iiiln) i i| i ii li (i~ iiiln) -
li ni r| l i i lii - -- i, iii i||, n ii- -i li il r| i| i ii lii
- -- ln, --i iln, liini lniin| i, l-n| -ii i lni i lin ii iil- r| i; li- i
nii i r| r|
r. i ilnln ini ii,in| li ,ii i|,l-i iii l in r| s.os.zoz i i, ii ili ` c.ro i
(ls i ` s.ss i) r i iii inni l i,| iii li ini i ~ lrn - lii-- -
r| l n r|
c. e wy l aL F kk
lli i -
i) i ii -- iin - i n ii-ii - | n; ` ss.so i | ili iil- r (ls i ` zs.r i )
i i) i lil- | iii sc(i) (viii) nnn ln lii l l lnn ii - -ilnn ni i -ilnn | ili
`rz.ss i r il i | i - r l -ii| n r i - -ilnn l i | i-ni r| r|
iii) `s.c i (ls i `c.z i) i l i ii ii ii | | r|
/. lli -ii ,li , ; i ii `19.26 i i in -ii (ls i r `12.55 i ) ii|
(` iii -)
-i i i n|i
2011-12 2010-11
. | |-i il| l
15.57 11.02
z. n| |-i il| l
3.19 1.08
s. - -i l
0.50 0.45
19.26 12.55
1 8 - v f r f j D r i zd V hd j . k
1 8 - 1 e wy l aL F kk
s.os.zoz i --;| lil-, zooc - liiln - |-i i i| --; ;i;i i i; ii ilii r| r|
s.z v u q" kax h
b aM Q aM e Su st e saV f y -
i l-n| i ii, i - iii - nliln il-ni - | i ./s i n lli l |
-ln | r| | ii ril lli iin l- - ./s i i lli li r|
s. ri i| i ri, i i i i l ls i ii i n|n li ni r|
i i Annual Report 2011 - 12
183
13.2.3 INDFUND MANAGEMENT LTD
Deferred Tax liability (Net)
The Break up of Deferred Tax Assets/Liabilities as under
As at March 2012 As at March 2011
Deferred Tax Liability
Timing difference on account of
Differences in Depreciation
in Block of Fixed Assets as per ` 20067/- ` 21447/-
Tax book & Financial Book
(Cumulative)
Gross Deferred Tax Liabilities (A) ` 20067/- ` 21447/-
Deferred Tax Assets (B) Nil NIL
Deferred Tax Liabilities (Net) (A B) ` 20067/- ` 21447/-
14. DISCLOSURE REQUIREMENTS UNDER AS 24 DISCONTINUED OPERATIONS
INDBANK MERCHANT BANKING SERVICES LTD:
The Company had discontinued fund-based activities consequent to SEBI regulations coming into force with effect from
December 1997 and had decided to undertake only fee-based activities. The existing fund based exposures as on December
1997 are continued to run down to their contracted period. The Company had obtained cancellation of registration as NBFC
from RBI consequent to repayment of fxed deposits and transfer of unclaimed fxed deposits to an escrow account with a
nationalised bank for repayment as and when claimed. The Company is now governed only by SEBI regulations.
The business segments have been identifed as the Primary Segment considering the nature of service, organisational structure
and internal fnancial reporting system. The services of the reported domestic business segments are classifed as "Discontinuing
operations (Fund Based) and "Continuing Operations (Fee Based). Discontinuing operations consists of Leasing, Hire purchase,
Intercorporate deposits and Investments. Continuing operations include Merchant Banking, Stock Broking, Depository Participant
services, distribution of Financial Products and allied activities. There is no Secondary Reportable Segment.
15. Interest Recompense Entitlements are accounted for by the Holding / Subsidiary Companies on Realisation / Settlement. The
Balance amount payable / receivable as on 31.03.2012 is ` 6.50 crore (previous year ` 8.98 crore) which will be accounted
for as and when payment is made / realized and consequent adjustments to minority interests have not been made.
16. PARENT
Miscellaneous income includes:
i) a sum of ` 133.30 Crore ( previous year ` 128.15 Crore) being recovery in written-off accounts
ii) ` 52.33 crore being reversal of Deferred Tax Liability created in the earlier years in respect of Special Reserve created
U/S 36 (i) (viii) of the Income Tax Act, since in the opinion of the Management it is only a permanent difference and
not capable of reversal
iii) ` 134.46 Crore ( previous year ` 146.42 Crore ) being recovery of processing charges during the year
17. During the current year, the Bank has earned commission etc, to the extent of `19.26Crore on sale/ marketing of various
Bancassurance products (previous year `12.55 Crore).
(` in Crore)
Sl No. Nature of Income 2011-12 2010-11
1 For Selling Life Insurance Policies 15.57 11.02
2 For selling Non-life insurance policies 3.19 1.08
3 Others For selling Mutual Fund Products 0.50 0.45
Total 19.26 12.55
18. ADDITIONAL DISCLOSURES
18.1 PARENT
There is no outstanding dues payable by the bank to MSME units pending beyond the time limit prescribed under
MSMED Act, 2006 as on 31.03.2012.
18.2 SUBSIDIARY COMPANIES
INDFUND MANAGEMENT LTD.:
During the current fnancial year SEBI had permitted to appropriate further recovery of NPA of Ind Jyoti Scheme to the
extent of ` 1.78 crore. Company has appropriated ` 1.78 crore to the credit of Proft and Loss Appropriation account.
19. Previous years fgures have been regrouped / reclassifed, wherever necessary, to conform to current years fgures.
184
e kp Z 31, 2012. d ks l e kI r o " kZ d s f y , l e sf d r u d n h i zo kg f o o j . k
(` =t| : -)
31.03.2012 H$mog _ m d f 31.03.2011 H$mog _ m d f
.li liii ir
y kHk o g kf u [ kkr s d s v u ql kj f u o y y kHk
1765.87 1741.92
f u Eu f y f [ kr g ssr q l e k; kst u
iii il--ni
1726.22 1566.85
-~ri
90.00 72.57
l- i i | l| ril,(ii)
0.84 (1.10)
d k; Z' khy i wt h i f j o r Zu ksa d ss i wo Z i f j p ky u x r y kHk
3582.93 3380.24
i f j p ky u x r v kf L r ; ksa e sa o `f ) @ d e h
lii - -|, (l,)
(3134.67) (6521.93)
ln-i - (l,)
(15068.26) (13097.49)
il-ni - -| ,(l,)
(990.51) (231.69)
(19193.44) (19851.11)
i f j p ky u x r n s; r kv ksa e sa o `f ) @ d e h
-ii - l,
14997.25 17562.85
nii - l, , (-|)
(1266.59) (1287.53)
13730.66 16275.32
i f j p ky u ks l s l `f t r f u o y u d n h v
(1879.85) (195.55)
c h- f u o s k x f r f o f k; ksa l s u d n h o kg
il-ni | i|
(157.07) (135.68)
il-ni | l|
12.01 7.68
f u o ss' k x f r f o f / k; ksa l s l `f t r f u o y u d n h v k
(145.06) (128.00)
l h- f o Rr i ks" k. k x f r f o f / k; ksa l s d qy u d n h i zo kg
iiii i nni
(362.33) (319.35)
iiii lni i nni
(57.23) (53.91)
m / kkj e sa o `f ) @ d e h
2695.86 1143.01
f o Rr i ks" k. k x f r f o f / k; ksa l s l `f t r f u o y u d n hb
2276.31 769.75
u d n h v kSj u d n h l e d j . kksa e sa f u o y o `f ) @ d e h v +$ v k++$ b
251.40 446.20
o " kZ d s i zkj aHk e sa u d n h o u d n h l e d j . k
rii - |(li| -i i- lrn)
249.73 303.81
iin| l ii i iin - ii
6628.23 6756.93
i - ii
() i iini -
56.33 61.84
(|) -i iini -
0.96 1.33
e kax , o a v Y i l wp u k i j j kf ' k; ka
0.00 549.62
iin ir i - ii
() i iini -
327.58 339.28
(|) -i iini -
1272.63 84.06
-in ~ i ilii
27.83 20.22
8563.29 8117.09
i i Annual Report 2011 - 12
185
Consolidated Cash Flow Statement for the year ended March 31, 2012
(` in Crore)
Year ended 31.03.2012 Year ended 31.03.2011
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Proft as per Proft & Loss Account 1765.87 1741.92
Adjustments for :
Provisions & Contingencies 1726.22 1566.85
Depreciation 90.00 72.57
Loss/(Proft) on Sale of Assets 0.84 (1.10)
Operating Proft before working capital changes 3582.93 3380.24
INCREASE/DECREASE IN OPERATING ASSETS
Decrease/(Increase) in Investments (3134.67) (6521.93)
(Increase) in Advances (15068.26) (13097.49)
Decrease /(Increase) in Other Assets (990.51) (231.69)
(19193.44) (19851.11)
INCREASE/DECREASE IN OPERATING LIABILITIES
Increase in Deposits 14997.25 17562.85
Increase /(Decrease) in Other Liabilities (1266.59) (1287.53)
13730.66 16275.32
Net cash generated from operating Activities (A) (1879.85) (195.55)
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (157.07) (135.68)
Sale of Fixed Assets 12.01 7.68
Net cash generated from Investing Activities (B) (145.06) (128.00)
C. CASH FLOW FROM FINANCING ACTIVITIES
Payment of Dividend (362.33) (319.35)
Payment of Dividend distribution tax (57.23) (53.91)
Increase / (Decrease) in borrowings 2695.86 1143.01
Net cash generated from Financing Activities (C) 2276.31 769.75
Net increase/(Decrease) in cash & cash equivalents (A+B+C) 251.40 446.20
CASH & CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
Cash in hand (including foreign currency notes) 249.73 303.81
Balances with Reserve bank of India -in current account 6628.23 6756.93
Balances with Banks
(a) in current accounts 56.33 61.84
(b) in other deposit accounts 0.96 1.33
Money at call and short notice (with Banks) 0.00 549.62
Balance with Banks Outside India
(a) in Current Accounts 327.58 339.28
(b) in other deposit accounts 1272.63 84.06
Money at call and short notice 27.83 20.22
8563.29 8117.09
186
o " kZ d s i zkj aHk e sa u d n h o u d n h l e d j . k 31.03.2012 H$mog _ m d f 31.03.2011 H$mog _ m d f
rii - | (li| -i i- lrn) 300.18 249.73
iin| l ii i iin - ii 6018.70 6628.23
i - ii
() i iini - 69.85 56.33
(|) -i iini - 0.28 0.96
c Sad ksa e sa e kax , o a v Y i l wp u k i j j kf ' k; ka
645.26
iin ir i - ii
() i iini - 568.50 327.58
(|) -i iini - 1180.40 1272.63
-in ~ i ilii
31.52 27.83
8814.69 8563.29
WmZ Place , Chennai
VmarI Date : 11.05.2012
-| - i| i| ~li | i -i i l
T M BHASIN RAJEEV RISHI B RAJ KUMAR R RAVI
A ` j Ed n ~ Y {Z Xoe H$ ii li ii li _ h mn ~ Y H$
Chairman & Managing Director Executive Director Executive Director General Manager
li DIRECTORS:
ilnini i SHAKTIKANTA DAS, i. . i -ir DR N KRISHNA MOHAN, -. ii M JAYANATH
-|n ii AMARJIT CHOPRA, -i SANJAY MAKEN,
- lil- | M BUTCHI RAMI REDDY, lni- -ri |lin CHINTAMAN MAHADEO DIXIT,
illi | ii |i STATUTORY CENTRAL AUDITORS:
(;| ni|i | r-i| li- i) (As per our report of even date)
n i- n | | n ~ii- |
For CHANDRAN & RAMAN For SURI & CO For KALYANASUNDARAM & CO
g Z Xr b oI mH$ma g Z Xr b oI mH$ma g Z Xr b oI mH$ma
Chartered Accountants Chartered Accountants Chartered Accountants
|i Registration No.000571S |i Registration No.004283S |i Registration No.001676S
--ili- i -ri -i-i
S. PATTABIRAMAN (R MAHESH) K. RAMESHKUMAR
g mP oXma g mP oXma g mP oXma
Partner Partner Partner
(M.No. 14309) (M No.24775) (M.No. 023962)
n -ir | n ||. il- n i . ni il-
For S. MOHAN & CO For ABP & ASSOCIATES For RAJ K AGGARWAL & ASSOCIATES
g Z Xr b oI mH$ma g Z Xr b oI mH$ma g Z Xr b oI mH$ma
Chartered Accountants Chartered Accountants Chartered Accountants
|i Registration No.000608N |i Registration No.315104E |i Registration No.002585N
| ii l nii i . ni
RAVINDER ARORA (NIRANJAN AGRAWALLA) (RAJ K AGGARWAL)
g mP oXma g mP oXma | |
Partner Partner Partner
(M.No. 085542) (M No.87939) (M No.081492)
i i Annual Report 2011 - 12
187
CASH & CASH EQUIVALENTS AT THE END OF THE YEAR Year ended 31.03.2012 Year ended 31.03.2011
Cash in hand (including foreign currency notes) 300.18 249.73
Balances with Reserve bank of India -in current account 6018.70 6628.23
Balances with Banks
(a) in current accounts 69.85 56.33
(b) in other deposit accounts 0.28 0.96
Money at call and short notice (with Banks) 645.26
Balance with Banks Outside India
(a) in Current Accounts 568.50 327.58
(b) in other deposit accounts 1180.40 1272.63
Money at call and short notice 31.52 27.83
8814.69 8563.29
WmZ Place , Chennai
VmarI Date : 11.05.2012
-| - i| i| ~li | i -i i l
T M BHASIN RAJEEV RISHI B RAJ KUMAR R RAVI
A ` j Ed n ~ Y {Z Xoe H$ ii li ii li _ h mn ~ Y H$
Chairman & Managing Director Executive Director Executive Director General Manager
li DIRECTORS:
ilnini i SHAKTIKANTA DAS, i. . i -ir DR N KRISHNA MOHAN, -. ii M JAYANATH
-|n ii AMARJIT CHOPRA, -i SANJAY MAKEN,
- lil- | M BUTCHI RAMI REDDY, lni- -ri |lin CHINTAMAN MAHADEO DIXIT,
illi | ii |i STATUTORY CENTRAL AUDITORS:
(;| ni|i | r-i| li- i) (As per our report of even date)
n i- n | | n ~ii- |
For CHANDRAN & RAMAN For SURI & CO For KALYANASUNDARAM & CO
g Z Xr b oI mH$ma g Z Xr b oI mH$ma g Z Xr b oI mH$ma
Chartered Accountants Chartered Accountants Chartered Accountants
|i Registration No.000571S |i Registration No.004283S |i Registration No.001676S
--ili- i -ri -i-i
S. PATTABIRAMAN (R MAHESH) K. RAMESHKUMAR
g mP oXma g mP oXma g mP oXma
Partner Partner Partner
(M.No. 14309) (M No.24775) (M.No. 023962)
n -ir | n ||. il- n i . ni il-
For S. MOHAN & CO For ABP & ASSOCIATES For RAJ K AGGARWAL & ASSOCIATES
g Z Xr b oI mH$ma g Z Xr b oI mH$ma g Z Xr b oI mH$ma
Chartered Accountants Chartered Accountants Chartered Accountants
|i Registration No.000608N |i Registration No.315104E |i Registration No.002585N
| ii l nii i . ni
RAVINDER ARORA (NIRANJAN AGRAWALLA) (RAJ K AGGARWAL)
g mP oXma g mP oXma | |
Partner Partner Partner
(M.No. 085542) (M No.87939) (M No.081492)
188
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nnn r ii | n; i| l r- | ii|ii | ii
; i i i liln l r- -ln ;
i - i-n ri i l l-n| lii i| -i ri -
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i| i; nn ii| r| | n; r| ii|ii nnn l-n|
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r- li r l r-i| ii|ii r-i li-n l ln
iii r|
s. ilni | l-n| llii ii |ii ,ii ii |lin
| n| r l| li- r- -nn | n| r nii ri n ilni
i - iil- | n; ili lin r-i| i r, r in
ii |ii | li- iiiln r|
. ;l-| ,ln nrn rilni - ;l li -~ i lnl-n
l r- n| rilni | l-n| llii i| li
li r|
r. r- li- n r l ,ii -ln l-n| li, iin| |
iii -ii ,ii i| iii -i () z -ln
l-n| li i zs -ln l-n| lii - rilni
- li rn ii iin| l | inii
i ni l n r
c r-i| i i ll-n n r, r- l-i| -i i- /. |
i i ilin n r i il i i i iin| l
,ii il i i -ili i i l~ l
i n-| |-i - l, li lli- ri
l ||i| .||.||,so,z.o.os,zoo
li os oz zo l ii -i () r, -i|
ii iiii in | n; s- rs/.rs
i | |-i n i i i n-| ln il-
i-in i i ni r|
/. r-i| ii|ii i i l-n| lii nii i-i |
l-n| ii| ii |iii | li-i li
i r-i| i-n- ii| r- l n --|ii i
nii | s i- .r ii , r-i| i r
l -ln l-n| li iin - i-in -|n ii
iili - r| i-nl l - n r
i. -ln n -i- - r s -i zoz i
-ln i
ii. -ln ii ril i -i- - ni|i i -inn
i -ln ii i
iii. -ln | ir li -i- - -ln l-n| li
,ii | n; li l -ln | ir |
|- Place -- Chennai
+| Date : 11.05.2012
n i- n | | n ~ii- |
For CHANDRAN & RAMAN For SURI & CO For KALYANASUNDARAM & CO
g Z Xr b oI mH$ma g Z Xr b oI mH$ma g Z Xr b oI mH$ma
Chartered Accountants Chartered Accountants Chartered Accountants
|i Registration No.000571S |i Registration No.004283S |i Registration No.001676S
--ili- i -ri -i-i
S. PATTABIRAMAN (R MAHESH) K. RAMESHKUMAR
g mP oXma g mP oXma g mP oXma
Partner Partner Partner
(M.No. 14309) (M No.24775) (M.No. 023962)
n -ir | n ||. il- n i . ni il-
For S. MOHAN & CO For ABP & ASSOCIATES For RAJ K AGGARWAL & ASSOCIATES
g Z Xr b oI mH$ma g Z Xr b oI mH$ma g Z Xr b oI mH$ma
Chartered Accountants Chartered Accountants Chartered Accountants
|i Registration No.000608N |i Registration No.315104E |i Registration No.002585N
| ii l nii i . ni
RAVINDER ARORA (NIRANJAN AGRAWALLA) (RAJ K AGGARWAL)
g mP oXma g mP oXma | |
Partner Partner Partner
(M.No. 085542) (M No.87939) (M No.081492)
i i Annual Report 2011 - 12
189
AUDITORS REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
1. We have examined the attached Consolidated Balance
Sheet of the Bank, its subsidiaries and associates (The
Bank) as at 31
st
March 2012, the Consolidated Proft and
Loss Account for the year ended on that date and the
Consolidated Cash Flow Statement for the year ended
on that date annexed thereto, in which are incorporated
the:
i. Accounts of the Indian Bank audited by us,
ii. Accounts of 3 subsidiaries audited by other auditors,
and
iii. Accounts of 3 associates audited by other
auditors.
These Consolidated Financial Statements are the
responsibility of the Banks Management and have
been prepared by the management on the basis of
separate fnancial statements and other fnancial
information of the Bank, its subsidiaries and associates.
Our responsibility is to express an opinion on these
fnancial statements based on our audit.
2. We conducted our audit of the consolidated fnancial
statements in accordance with the generally accepted
auditing standards in India. Those Standards require
that we plan and perform the audit to obtain reasonable
assurance whether the fnancial statements are prepared,
in all material aspects in accordance with identifed
reporting framework and free of material misstatements.
An audit includes, examining on a test basis, evidences
supporting the amounts and disclosures in the fnancial
statements. An audit also includes assessing the
accounting principles used and signifcant estimates
made by management, as well as evaluating the overall
fnancial statements presentation. We believe that our
audit provides a reasonable basis for our opinion.
3. The fnancial statements of the subsidiaries have been
audited by other auditors whose reports have been
furnished to us and in our opinion, in so far as it relates
to the amount included in respect of the subsidiaries,
is based solely on the report of the other auditors.
4. We have also considered the fnancial statements
of three Associates audited by other auditors for
To
incorporating the Investment value of Indian Bank in
Associates under Equity Method.
5. We report that the consolidated fnancial statements
have been prepared by the Bank in accordance
with the requirements of Accounting Standard (AS)
21 Consolidated Financial Statements and AS
23 Accounting for investments in Associates in
Consolidated Financial Statements issued by the
Institute of Chartered Accountants of India and the
requirements of Reserve Bank of India.
6. Without qualifying our opinion, we draw attention to
Note 7.1 to the fnancial statements, which describes
deferment of pension and gratuity liability of the
bank to the extent of ` 587.53 crore pursuant to the
exemption granted by the Reserve Bank of India to the
Public Sector Banks from application of the provisions
of Accounting Standard (AS) 15, Employee Benefts,
vide its circular no.DBOD.BP.BC/80/21.04.018/2010-11
dt.09.02.2011 on Re-opening of Pension Option to
Employees of Public Sector Banks and Enhancement
in Gratuity Limits Prudential Regulatory Treatment.
7. Based on our audit and on consideration of report of
other auditors on separate fnancial statements and
on the other fnancial information of the components,
and to the best of our information and according to the
explanations given to us and read with Note No.15 of
Schedule 18, we are of the opinion that the attached
consolidated fnancial statements give a true and fair
view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Consolidated Balance Sheet, of
the consolidated state of affairs of the Bank as on
31
st
March 2012;
ii) In the case of the Consolidated Proft & Loss
Account, of the Consolidated Proft of the Bank for
the year ended on that date, and
iii) In the case of Consolidated Cash Flow Statement, of
the Consolidated cash fows of the Bank for the year
covered by the Consolidated Financial Statements.
|- Place -- Chennai
+| Date : 11.05.2012
THE BOARD OF DIRECTORS
INDIAN BANK
For CHANDRAN & RAMAN For SURI & CO For KALYANASUNDARAM & CO
Chartered Accountants Chartered Accountants Chartered Accountants
Registration No. 000571S Registration No. 004283S Registration No. 001676S
S PATTABIRAMAN R MAHESH K RAMESHKUMAR
Partner Partner Partner
(M. No.14309) (M. No.24775) (M. No.23962)
For S MOHAN & CO For A B P & ASSOCIATES For Raj K Aggarwal & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Registration No. 000608N Registration No. 315104E Registration No.002585N
RAVINDER ARORA NIRANJAN AGRAWALLA RAJ K AGGARWAL
Partner Partner Partner
(M. No.85542) (M. No.87939) (M. No.81492)
190
iin| l ,ii ii ll- II inii
i i - lnln -|i
l kj . kh M h, Q + & 1
v u qi z; ksx d k { ks= kf / kd kj
x q. kkRe d i zd V hd j . k
r i ;l in rin| rS
i) iilin | inni -i ( II -ni s | inii -) -n (iiil- l-iln) ;l in rin
r|
ii) l-n| li lnril inn ii i - ~i iii ni l in r nii iin| iiiii i - iin - ln
illi iiii ,lni r nii li l-in iiiii i - ii ni i i - ln illi iiii
,lni r|
iii) | l-llin n| ilni r ii () ; -- ln l ll-- (i) ; riln l., nii (n) ; ---
ll-- i n| il- r ii (i) ~ ni- (ii) nlnl ni-|i i (iii) iilni ni- |
-r (- -ii | ilni il-) -ln l-n| li, ;l (- -ii) i | ilni, ;l ii
|lin l-n| lii iii , il-ni, nii, i | | -i i ii i, i; i; iii l-in r n
-r i i in ii , rili i si i -i iii |ln i ii -ii i ni l n r|
ilni il-, illi inii i lin lli- iliii ,ii ll- iii |lni i i n r| lli
iii |lni i i l i | l- -ln l-i| li li,illi inii lin iii |lni i in r
ni l in r|
- -ii i iiln -ii - li l r; inn i | ni|i i in| -ii - - | | ;l-| - n i l-n| li - |
l nii i- - li ini r| i ii , rili - - | lr- i -ii, i- l ln li ini r|
in| -ii li l lii- i in| | l-n - ~ i ii l il-n i r i nilnn r i ~i
i r|
iii -i () zs, i l il- ii |lin l-n| lii iii i;|i; ,ii i| -ln l--i| lii - il-
- lii l iii i il- - lii i ;l-| n| nrn ii, li ni r|
e k kkRe d d V hd j . k in r|
l kj . kh M h, Q + & 2
i w a t h l a j p u k
x q . kkRe d i z d V hd j . k %
) l- | - ;l-| i | i l-i| n | li-i i | iil- r nii l - illi l, | i- l, i
|l-- i ii ril i - ii ili iil- r|
|) l-z | - -~i l, l-II i nii ~i i-i iii iil- r|
e k kkRe d i z d V hd j . k %
f V ; j & 1 i wat h (` i -)
f o o j . k , d y l ko ZHkkSf e d l e sf d r
-n ;l-| i |
429.77 429.77
l-i| n | li-i i |
400.00 400.00
l
8723-52 8863.06
i-i i-ilnn il-n
0.00 5.74
l- I
9553.29 9687.21
i i Annual Report 2011 - 12
191
ADDITIONAL DISCLOSURES IN TERMS OF COMPLIANCE OF
BASEL II REQUIREMENTS AS STIPULATED BY RESERVE BANK OF INDIA
Table DF 1
Scope of Application
Qualitative Disclosures
The framework applies to Indian Bank
i) The revised capital adequacy norms (in conformity with Basel II Pillar 3 requirements) applies to Indian Bank at the
solo level (global position).
ii) The fnancial statements are prepared by following the going concern concept on historical cost convention and
conform to the statutory provisions and practices prevailing in India in respect of Indian branches and in respect of
foreign branches as per statutory provisions and practices prevailing in the respective countries, unless otherwise
stated.
iii) The Bank has the following three subsidiaries namely (a) IndBank Merchant Banking Services Ltd, (b) Ind Bank Housing
Ltd. and (c) Indfund Management Ltd. and three associates namely (i) Pallavan Grama Bank, (ii) Saptagiri Grameena
Bank and (iii) Puduvai Bharathiar Grama Bank
Consolidated fnancial statements of the group (parent, its subsidiaries and associates) have been prepared on the basis
of audited fnancial statements of Indian Bank (parent) and its subsidiaries, combined on line by line basis adding together
like items of assets, liabilities, income and expenses, after eliminating intra group transactions and unrealized proft /
losses. The Subsidiaries and Associates follow Accounting Policies as prescribed by the respective regulatory authorities
and as per statutory requirements. In view of such diverse accounting policies required to be followed, the consolidated
fnancial statements have been prepared by adopting the respective accounting policies of the mandated / statutory
requirements.
The difference between the cost to the parent of its investment in subsidiary entity and the parents portion of its equity
in the subsidiary with reference to the date of acquisition is recognized in the fnancial statements as Capital reserve and
Goodwill. The parents share of the post acquisition of profts / losses is adjusted against the Revenue Reserve.
The minority interest in the net result of the operation and the asset of the subsidiary, represent that part of proft and the
net asset attributable to the minorities.
Investments in Associates are accounted for under Equity method as per Accounting Standards (AS) 23 Accounting for
investments in Associates in Consolidated Financial Statements issued by ICAI based on the audited Financial Statements
of the Associates.
Quantitative Disclosures NA
Table DF 2
Capital Structure
Qualitative Disclosures:
a) Tier 1 Capital includes Equity Share capital and Perpetual Non-cumulative Preference Share capital, Reserve comprising
of Statutory reserves, capital and revenue reserves, share premium and Balance in Proft and Loss account
b) Tier 2 Capital consists of the Revaluation Reserves, Tier II Bonds Subordinated debt and general provisions.
Quantitative Disclosures:
Tier 1 Capital (` in Crore)
Particulars Solo (Global) Consolidated
Paid up Equity Share Capital 429.77 429.77
Perpetual Non cumulative Preference Share Capital 400.00 400.00
Reserves 8723.52 8863.06
Less Deferred Tax Asset 0.00 5.62
Total Tier 1 9553.29 9687.21
192
f V ; j & 2 i wat h (`ii -)
f o o j . k , d y l ko ZHkkSf e d l e sf d r
nii ~i
1036.04 1036.04
i-i iii l
447.02 402.52
-~i l
523.82 523.82
d qy f V ; j & 2
2006.88 1962.38
f o o j . k , d y l ko ZHkkSf e d l e sf d r
d qy i wat h f V ; j & 1 , o a f V ; j & 2
11560.17 11649.59
l kj . kh M h, Q + & 3
i wt h i ; kZI r r k
x q. kkRe d i zd V hd j . k
nii -ln ii -ni s lnin li i |ii nii c lnin li i l- |ii ini r|
iilin i i l| n- -n + lin n- | i ini r, il l-llin lin ri
() iilin i i lin n- | ,
(|) i i lin n- | i so lnin
e k= kRe d i zd V hd j . k
() ~i ili- rn | ini (` ii -)
li (iiil-) -ln
-i|n lin- ni| lin
6843.41 6847.27
lnilni ~i i i
(|) ii ili- rn | ini (` ii -)
-i|n li lin-
li (iiil-) -ln
i ili-
175.20 175.20
li| ll- ili- (-i lrn)
4.50 4.50
;l-| ili-
85.58 85.58
(|) linn ili- rn |nn ini (` ii -)
li (iiil-) -ln
- n lin-
616.42 618.00
(|) nii l- | in
li (iiil-) -ln
| inni in
13.47% 13.56%
l- | inni in
11.13% 11.28%
i i Annual Report 2011 - 12
193
Tier 2 Capital (` in Crore)
Particulars Solo (Global) Consolidated
Subordinate Debt 1036.04 1036.04
General Provisions 447.02 402.52
Revaluation Reserves 523.82 523.82
Total Tier 2 2006.88 1962.38
Particulars Solo (Global) Consolidated
Total Capital (Tier 1 and Tier 2) 11560.17 11649.59
Table DF 3
Capital Adequacy
Qualitative Disclosures:
Bank maintains at both solo and consolidated level CRAR of more than 9% and Tier 1 CRAR of more than 6%.
The Bank maintains the minimum capital required as per Revised Framework above the Prudential foor viz higher of
(a) Minimum capital required as per the Revised Framework;
(b) 80% of the minimum capital required as per Basel 1 framework.
Quantitative disclosures
(a) Capital requirements for credit risk:
(` in Crore)
Particulars Solo (Global) Consolidated
Portfolios subject to standardized approach 6843.41 6847.27
Securitization exposures Nil Nil
(b) Capital requirements for market risk:
Standardized Duration Approach
(` in Crore)
Particulars Solo (Global) Consolidated
Interest Rate Risk 175.20 175.20
Foreign Exchange Risk (including gold) 4.50 4.50
Equity Risk 85.58 85.58
(c) Capital requirements for operational risk:
(` in Crore)
Particulars Solo (Global) Consolidated
Basic Indicator Approach 616.42 618.00
(d) Total and Tier 1 capital ratio:
Particulars Solo (Global) Consolidated
Total Capital Adequacy Ratio 13.47% 13.56%
Tier 1 Capital Adequacy Ratio 11.13% 11.28%
194
l kj . kh M h, Q + & 4
_ . k t ksf [ ke % l Hkh c Sad ksa g sr q l ke kU; i zd V hd j . k
x q. kkRe d i zd V hd j . k
i lini nii il-n n| i -i i r n lli- ,ii liilin ls ii nii ll- n liiiii i ( iii i ii ) ii r |
~i i li- i |ln in | r i ; i| iiiii i liln li ni r | |ln i - r lln i r l li i | -iii
r nii i | i|lni i li -n ii l ii - r ii ni r | r |ln rn ~i -i , ~i il r n -i, i - i li
i, ~i -|ii n , i li- |i, i li- lni| nii - ~i , iii|i nii lli- , lli i l | |-ii i lii ln n| r |
i li-i | ri ni r i i iiln n r nii ; i li-i -i, lni| nii l i l ln n|| i i n ni r |
l i , i | i li- i l-ln |ln n i n| r nii lli ~i i li-i i lii ln n| r , ~i i li- i l-ln i , i-| ,ii -i ln
; |lni i|lni i ii ln n| r , i iii ~i i li- | lni| ni r nii i li- |-ii i i lln ni r |
() nii i- lr iini i r n i |-i lii i (|) n |-i l- n (|) i ni i |-i nii (|) i - ~ii ii ni l
lni l ii ,ii i li- |i i ni r | i| i i i i i - n| n li ni r ii -n, lii, l-|
l| i| iini lin ~i i li- i -i l ii iin | l- n i -r- i i -ini r i n i - l,ii-| ~i
l- n ii| i | n; i|| lli i i l | inii n i- iln l- n , -i l n -i n i l n r i ; lli
i i r n iiiii , ii i - liln li ni r |
e k= kRe d i zd V hd j . k
() ~i i li- i i in lli iiiln n lli iiiln (` ii -)
li (iiil-) -ln
~i ili- -ii
lli iiiln
~i ln-
91184.20 91185.19
li
26839.36 26845.24
il-ni
12946.34 12996.01
lli iiiln
130969.90 131026.44
n lli iiiln l - il-- l-, li nii - ili- r
67360.35 67367.77
~i ili- -ii
198330.25 198394.21
(|) i i i ii ni l lni (- ln), lli iiiln n lli iiiln n in (` ii -)
iinil i lli iiiln il-- ~i, li nii - lrn
nlli iiiln
i|
6610.58 2679.19 9289.77
i|
124415.86 64688.58 189104.44
ln-
1058.56 1553.49 3077.21 3099.25 8116.98 7507.43 12414.08 30701.58 11005.56 11789.46 90323.60
li
199.75 1380.79 783.01 964.45 5806.07 4502.14 7467.64 9726.50 834.39 9542.58 41207.32
i () `sco. i | lni lni nii |, ;l-| `zzs.sr i i ro lnin lrn
(` ii -)
(;) | | ili () ( iiil-)
1850.78
-i
1322.85
li
316.64
li z
185.71
li s
11.23
ril
14.35
() l |
1196.83
(|) | in
ln- ln |
2.03%
l ln- ln l |
1.33%
() | i iin- ()
iii
740.31
i
1879.51
i-i
769.04
nii
1850.78
(i;) | iii i iin-
iii
159.73
i ii l n iii
994.58
--iin ii
654.74
lnln iiii i lni
21.83
nii
477.74
() n li lii | ili
0.74
() n li li rn iiln iii ili
0.74
() lii -~ri rn iiii i iin-
iii
208.61
i ii l n iii
5.00
--iin ii
0.00
lnln iiii i lni
0.00
nii
213.61
i i Annual Report 2011 - 12
199
(d) Residual contractual maturity break-up of advances and investments (Solo-Global) (` in crore)
Details 1 Day 2-7 Days 8-14
Days
15-28
Days
29 Days-
3 M
>3M
- 6 M
>6 M - 1
Year
>1 Y
3Years
>3 Y
-5Years
>5 Years Total
Advances 1058.56 1553.49 3077.21 3099.25 8116.98 7507.43 12414.08 30701.58 11005.56 11789.46 90323.60
Investments* 199.75 1380.79 783.01 964.45 5806.07 4502.14 7467.64 9726.50 834.39 9542.58 41207.32
*Includes Repo(LAF) securities of ` 3460.14 Crore and excludes 50% of listed equities of ` 228.85 Crore
(` in Crore)
(e) Amount of NPAs (Gross) - (Solo-Global) 1850.78
Substandard 1322.85
Doubtful 1 316.64
Doubtful 2 185.71
Doubtful 3 11.23
Loss 14.35
(f) Net NPAs 1196.83
(g) NPA Ratios
Gross NPAs to gross advances 2.03%
Net NPAs to net advances 1.33%
(h) Movement of NPAs (Gross)
Opening Balance 740.31
Additions 1879.51
Reductions 769.04
Closing Balance 1850.78
(i) Movement of provisions for NPAs
Opening Balance 159.73
Provisions made during the period 994.58
Write Off 654.74
Write-back of excess provisions 21.83
Closing balance 477.74
(j) Amount of Non-Performing investments 0.74
(k) Amount of Provisions held for non-performing investments 0.74
(l) Movement of provisions for depreciation on investments
Opening balance 208.61
Provisions made during the period 5.00
Write-off 0.00
Write-back of excess provisions 0.00
Closing balance 213.61
200
l kj . kh M h, Q + & 5
_ . k t ksf [ ke % e ku d hd `r v f Hkx e d s v / ; / khu l af o Hkkx ksa g sr q i zd V hd j . k
x q. kkRe d i zd V hd j . k %
| inni i i r -iii ii-, | ii -ii il l iin| l ,ii -iln i liii
liii ii ) i;l |) ;i |) i |) l- ,ii ll- l-n i in ni r| ; + lnln lli-
liilii - -n l n i, ; iiiln ir| liii -ln i| iii ni r| ii- ii i n
liiln -i in r|
e k= kRe d i zd V hd j . k %
-i|n lin- nrn ~i ili- lii i liiln ~i ili- -ii ( iiil-) l-ii r (` ii -)
f o o j . k
oo lnin ili- ii
|
oo lnin
ili- ii
oo lnin li
ili- ii
in
r| -~ ili-
iiln -~
r| -~ ili-
iln -~
r| -~ ili-
iiln -~
r| -~ ili-
iiln -~
lli iiiln
~i ln-
47168.72 19040.28 29370.78 28806.44 14644.71 14126.24 91184.21 61972.96
li
26591.56 38.30 228.81 228.81 18.98 28.45 26839.35 295.56
il-ni
10766.62 1003.45 2179.72 1925.21 0.00 0.00 12946.34 2928.66
lli iiiln
84526.90 20082.03 31779.31 30960.46 14663.69 14154.69 130969.90 65197.18
n lli iiiln l-
i ln ~i iil- r
45457.81 2308.47 16369.46 5898.20 5533.08 2634.03 67360.35 10840.70
~i ili- ii
129984.71 22390.50 48148.77 36858.66 20196.77 16788.72 198330.25 76037.88
-i|n lin- nrn ~i ili- lii i liiln ~i ili- -ii (-ln) l-ii r (` ii -)
f o o j . k
oo lnin ili- ii
|
oo lnin
ili- ii
oo lnin li
ili- ii
in
r| -~ ili-
iiln -~
ili-
ii
ili-
iiln -~
r| -~ ili-
iiln -~
r| -~ ili-
iiln -~
lli iiiln
~i ln-
47168.72 19040.28 29371.77 28807.43 14644.71 14126.24 91185.20 61973.95
li
26591.61 38.30 234.64 234.64 18.98 28.45 26845.23 301.39
il-ni
10787.86 1003.71 2208.15 1953.64 0.00 0.00 12996.01 2957.35
lli iiiln
84548.19 20082.29 31814.56 30995.71 14663.69 14154.69 131026.44 65232.69
n lli iiiln l-
i ln ~i iil- r
45457.81 2308.47 16376.87 5905.62 5533.08 2634.03 67367.77 10848.12
~i ili- ii
130006.00 22390.76 48191.43 36901.33 20196.77 16788.72 198394.21 76080.81
i i Annual Report 2011 - 12
201
Table DF 5
Credit Risk: disclosures for portfolios subject to the standardized approach
Qualitative Disclosures:
The Bank uses ratings assigned by the four Rating Agencies approved by the Reserve Bank of India namely a) CRISIL, b)
ICRA, c) CARE and d) FITCH for the eligible exposures such as Corporate, Capital Market Exposures etc. according to the
New Capital Adequacy Framework. Over and above the same, the Bank also relies on mapping of issue based external
ratings as permitted in the regulatory guidelines. The rest of the claims on corporates are treated as unrated.
Quantitative Disclosures:
The total credit risk exposure (Solo-Global) bifurcated after the credit risk mitigation under Standardized Approach is as under:
(` in Crore)
Particulars
Below 100% Risk
Weight
100% Risk Weight More than 100%
Risk Weight
Grand Total
Book
Value
Risk
Weighted
value
Book
Value
Risk
Weighted
value
Book
Value
Risk
Weighted
value
Book
Value
Risk
Weighted
value
Fund Based
Loans and Advances 47168.72 19040.28 29370.78 28806.44 14644.71 14126.24 91184.21 61972.96
Investments 26591.56 38.30 228.81 228.81 18.98 28.45 26839.35 295.56
Other Assets 10766.62 1003.45 2179.72 1925.21 0.00 0.00 12946.34 2928.66
Total Fund Based 84526.90 20082.03 31779.31 30960.46 14663.69 14154.69 130969.90 65197.18
Non Fund Based including
Contingent Credit.
45457.81 2308.47 16369.46 5898.20 5533.08 2634.03 67360.35 10840.70
Total Credit Risk Exposure 129984.71 22390.50 48148.77 36858.66 20196.77 16788.72 198330.25 76037.88
The total credit risk exposure (Consolidated) bifurcated after the credit risk mitigation under Standardized Approach is as under:
(`in Crore)
Particulars
Below 100% Risk
Weight
100% Risk Weight More than 100%
Risk Weight
Grand Total
Book
Value
Risk
Weighted
value
Book
Value
Risk
Weighted
value
Book
Value
Risk
Weighted
value
Book
Value
Risk
Weighted
value
Fund Based
Loans and Advances 47168.72 19040.28 29371.77 28807.43 14644.71 14126.24 91185.20 61973.95
Investments 26591.61 38.30 234.64 234.64 18.98 28.45 26845.23 301.39
Other Assets 10787.86 1003.71 2208.15 1953.64 0.00 0.00 12996.01 2957.35
Total Fund Based 84548.19 20082.29 31814.56 30995.71 14663.69 14154.69 131026.44 65232.69
Non Fund Based including
Contingent Credit.
45457.81 2308.47 16376.87 5905.62 5533.08 2634.03 67367.77 10848.12
Total Credit Risk Exposure 130006.00 22390.76 48191.43 36901.33 20196.77 16788.72 198394.21 76080.81
202
l kj . kh M h, Q + & 6
_ . k t ks f [ ke f u o kj . k & e ku d h r v f Hkx e ks a g s r q d V hd j . k
x q. kkRe d i zd V hd j . k
() ~i ili- lii nii || , iin| l liilii | iii i i - in r ln il | ri
inni i nii (i) ||, iin| l liilii - liiln lin- i | ii l - ~i ili- lii
ii i ;-n- i iil- ~i ili- lii nii il i |ln in | r|
iiiin ~i riilnni, -ii | n- |-i, -i n, ii , n -il, ~i lii, il nii |-i ~i
lii n|i iii ni r|
~i ili- i |ln - -~i ,lni i l-nn nii ni r|
in -i i lni nii ii-i nil-i -|i ni r| i- i-| i n- ili- ii i| -iii ,ii i|
nil-i r| -|i | in|, nil i- i-| ii rn ii in ri|
~i ili- lii - ili- |i lii rn i i| i | lnilni ii| | i l-n| lnilni r| ; ii ,
,ii -ini in ~i ili- lii - ~i |i i r-i l n-i - i; |-i , n- |-i liiln r| | n; r|
e k= kRe d i zd V hd j . k
- l-n n ~i ili- liin rn, ( iiil- , -ln) ili- (n l-n i, ii n, ri
i ri) i l r- i i l-n| il ,ii li ini r
(` ii -)
-ii i i r l-n| il nil-i
~i ili- ii
lli iiiln
~i i ln-
12496.86 4325.30
li
0.00 36.27
il-ni
254.51 0.00
lli iiiln
12751.37 4361.57
n lli iiiln l - iln l-, li
i - iil- r
1737.67 125.65
14489.04 4487.22
l kj . kh M h, Q + & 7
f r Hkwf r d j . k % e ku d h r v f Hkx e g sr q d V hd j . k
x q. ko Rr k d V hd j . k % i ; ln lni lii r| li r |
e k= kRe d i zd V hd j . k % ' kwU;
l kj . kh M h, Q + & 8
O; ki kj c g h V sf M ax c qd e sa c kt +kj t ksf [ ke
x q. kkRe d i zd V hd j . k
ii r| - ii ili- i -~i -i|n li ,ln ,ii li ini r| -| i rn | ii | nii iin| l
l| liilii i | in| r|
e k= kRe d i zd V hd j . k
l- rn | ini ( iiil- , -ln) (` ii -)
i ili-
175.20
li| ll- ili-
4.50
;l-| l-iln ili-
85.58
i i Annual Report 2011 - 12
203
Table DF 6
Credit Risk Mitigation: disclosures for standardized approaches
Qualitative Disclosures
The Bank has put in place Credit Risk Mitigation & Collateral Management Policy with the primary objective of a) Mitigation of credit risks &
enhancing awareness on identifcation of appropriate collateral taking into account the spirit of Basel II / RBI guidelines and (b) Optimizing
the beneft of credit risk mitigation in computation of capital charge as per approaches laid down in Basel II / RBI guidelines.
The Bank generally relies on Risk Mitigation techniques like Loan participation, Ceiling on Exposures, Escrow mechanism, Forward cover,
higher margins, loan covenants, Collateral and insurance cover.
Valuation methodologies are detailed in the Credit Risk Management Policy.
Bank accepts guarantees from individuals with considerable networth and the Corporates. Only guarantees issued by entities with a
lower risk weight than the counterparty shall be accepted to get the protection for the counter party exposure.
Concentration Risk in Credit Risk Mitigation: All types of securities eligible for mitigation are easily realizable fnancial securities. As such,
presently no limit / ceiling has been prescribed to address the concentration risk in credit risk mitigants recognized by the Bank.
Quantitative Disclosures
For each separately disclosed credit risk portfolio (Solo-Global / Consolidated), the total exposure (after, where applicable, on- or off
balance sheet netting) that is covered by eligible fnancial collateral after the application of haircuts:
(`in Crore)
Type of Exposure Eligible fnancial Collateral Guarantees
Gross Credit Risk Exposures
Fund Based
Loans and Advances 12496.86 4325.30
Investments 0.00 36.27
Other Assets 254.51 0.00
Total Fund Based 12751.37 4361.57
Non Fund Based including contingent
credit, contracts and derivatives
1737.67 125.65
Total 14489.04 4487.22
Table DF 7
Securitization : disclosure for standardized approach
Qualitative Disclosures: The Bank has not undertaken any securitization activity.
Quantitative Disclosures: NIL
Table DF 8
Market risk in trading book
Qualitative Disclosures
Market Risk in trading book is assessed as per the Standardized duration method. The capital charge for HFT and AFS is
computed as per Reserve Bank of India prudential guidelines.
Quantitative Disclosures:
The capital requirements (Solo-Global / Consolidated) for:
(` in Crore)
Interest rate risk 175.20
Foreign exchange risk 4.50
Equity position risk 85.58
204
l kj . kh M h, Q + & 9
i f j p ky u kRe d t ksf [ ke
x q. kkRe d i zd V hd j . k %
lii-- ili- rn | ii | nii - n lin- iii | in| r| | inni i i| liilii - liilin
l n i i | in - ls n| ii iin zoo, zooso zoosos i | ii | nii rn lri - li ni
r| i | `.cc.z i ( iiil-) i `.cs.oo i (-ln) r|
l kj . kh M h, Q + & 10
c Saf d x c g h e sa C; kt n j t ksf [ ke v k v kj v kj c h c h
x q. kkRe d i zd V hd j . k
n-iiln l~ ili- i li ini r i i i|ni lii - - li ini r| i i|ni iii
ln r| - i ili- i -il iii li ini r| ili- | nii l-i l-iln - il n lii
iii | in| r| ;l-| i ii -~ (-|;) | nii, li n lii i i li ini r|
e k= kRe d i zd V hd j . k
i;ii|| ( i|) i -i rn i | ii| i +ni-| iini-| - ii rn, i ili -~ (ii i
,ii n lin -i) - l, (lni-)|
i) s.os.zoz n i - zr || | l, rn ili- `.cs.z i r|
ii) ;l-| ii -~ - zoo || ln i `.cso.sc i r
(z - i - - ||i,iii i -~liii)|
i i Annual Report 2011 - 12
205
Table DF 9
Operational Risk
Qualitative Disclosures
Capital charge for Operational Risk is computed as per the Basic Indicator Approach. The average of the gross income,
as defned in the New Capital Adequacy Framework guidelines, for the previous 3 years ie 2010-11; 2009-10 and
2008-09 is considered for computing the capital charge. The required capital is ` 616.42 Crore (Solo-global) and ` 618.00
Crore (Consolidated).
Table DF 10
Interest Rate Risk in the Banking Book (IRRBB)
Qualitative Disclosures:
Embedded Option Risk is studied and factored in the interest rate sensitivity analysis. Based on the interest rate sensitivity,
interest rate risk in the Banking Book is studied on a quarterly basis. Earnings at Risk are computed based on the Traditional
Gap Analysis on a static position. Market Value of Equity (MVE) is computed adopting the Duration Gap Analysis.
Quantitative Disclosures:
The increase (decline) in earnings and economic value (or relevant measure used by management) for upward and
downward rate shocks according to managements method for measuring IRRBB (Solo-Domestic).
i) Earnings at Risk for 25 bps interest rate decrease as on 31 03 2012 for one year time horizon is ` 63.12 Crore
ii) Change in Market Value of Equity for 200 bps interest rate shock is ` 630.96 Crore
(Repricing of BPLR/Base Rate in the 2nd time bucket)
206
; g i `" B t ku c w> d j [ kky h N ksM +k x ; k g S A
This page is intentionally left blank
i i Annual Report 2011 - 12
207
ii- ii zrzco, i-n- i, i--i, . coo o
, u b Zl h, l v f / kn s' k@ c Sad [ kkr k f o o j . k g sr q Q ke Z
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iiii i 9 v ad ksao ky k e kb d j d ksM u ac j v kSj v kb Z, Q , l d ksM
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-ilin ll-ilni -, i -n,r- ;| , - iiii i inni | li i iiln n| r, in| -
iiii li i i lii ini r|
i|,
-ii
li (i-, iii i i- r-nii)
-ilin li ini r l + l n li r-i lii i r| r|
-ii
li iiii i r-nii
1. l i ;-il (|--) - i in r ni |i il-| lniin| i li |
2. i i| i- i | i i-i li r| li ini| l i r r| -n n r ni i ; i- i |
208
Corporate Offce: 254-260, Avvai Shamugam Salai, Royappettah, Chennai- 600 014.
Form for NECS/NEFT Mandate / Bank Account Details
To
Cameo Corporate Services Limited,
Unit : Indian Bank,
Subramanian Building,
1, Club House Road,
CHENNAI 600 002.
Dear Sir,
Re: Equity Shares of Indian Bank - option to receive dividend through National Electronic Clearing Service (NECS) /
National Electronic Funds Transfer (NEFT) facility at Centres where it is available.
I/ We hold equity shares of Indian Bank.
I / We request you to arrange for payment of my / our dividend through NECS/NEFT facility and credit the same to my / our
account as per details given below:
1. First / Sole Shareholders name
2. (a) Registered Folio No.
(If shares are not dematerialized)
(b) DP ID No.
Client ID No.
(If shares are dematerialized)
3. Particulars of Bank Account
a. Bank Name
b. Branch Name
c. Address of the Branch (with PIN Code)
d. Telephone number and Fax number
9 - digit MICR code / IFS code e. number of the Bank and Branch as
appearing on the MICR Cheques issued by the Bank
Account type ( Savings / Current / Cash Credit with code 10/11/13 ) f.
Account Number as appearing on the Cheque Book g.
(Please attach a cancelled blank cheque or photocopy of a cheque issued by your Bank for verifcation of the above
details).
I/We hereby declare that the particulars given above are correct and complete. If any transaction is delayed or not effected
at all for reasons of incomplete or incorrect information, I/We would not hold the Bank responsible. I /We understand that
the Bank also reserves the right to send the dividend payable to me / us by a physical dividend warrant on account of
unforeseen circumstances beyond the control of the Bank that may affect the payment of dividend through NECS / NEFT.
Yours faithfully,
Place :
Date : (Name and signature of First / Sole Shareholder)
Certifed that the particulars furnished above are correct as per our records.
Place :
Date : Signature of the Branch Manager
In case you hold shares in electronic (D-Mat) form, kindly give the Bank details directly to your Depository 1.
Participant.
Kindly fll in all columns. Incomplete forms shall not be entertained. Please ignore this form, if the same is already 2.
submitted.
i i Annual Report 2011 - 12
209
ii- ii zrzco, i-n- i, i--i, . coo o
i zkWD l h Q ke Z
' ks; j / kkj d ksa } kj k Hkj k v j g L r k{ kkj f d ; k t k,
|n ili i || i;|
i;- i;|
(l i |--|li; r| l n rini) (l i |--|li; l n rini)
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i ................................................................................................ l .............................................................................................. li| r, i i
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- i l| -in iiln | ii| ;l iiii d h N B h o kf " kZd l ke kU; c SB d - - , r-i i|
- -| , r-i| i -ni l ln ni r ,n r|
i ............................................................... li ....................................................... zoz i r-niiln
i r
i i-
--i- li
.................................................................... ..........................................................................................
i| r-nii i- i-i , iii r-nii
....................................................................................................................................................................................................................................................................................
i- ............................................................................................................
ni .............................................................................................................
......................................................................................................................
......................................................................................................................
i zkWD l h Q +ke Z i j g L r k{ kj d j u s v kSj m l s n k; j d j u s d s f y , v u qn s' k
1. i| | i; i| lin n n i r| rin|, n
) ln iiii -i- -, iii i -| ,ii llin - llin ilin r| li ini r ,
i) niii -i- - l-- - r il-n i ii i ,ii llin llin ilin -| ,ii r-niiln r| li ini r |
n) lnl-n li -i- - lii| i llin - llin ilin l| -| ,ii r-nii r| l in r|
2. i| | lin l| iii ,ii, i l| iii i i- r| li ni , n| r, ni l i lr nii ini r i
l| , -l---, l--i i l--i i i| iln lii| i ;l lii| ,ii r-niiln li ini r
ni in r-niiln -ii ini|
3. i; i| i| n n i r| rin| n l r llin --iln r| ri i l-llin n - - ili i-i - | ni|i
i l r -nii- i ilii ii, l i; ri, l nnn r r-niiln ri i -nii- i ilii ii, i l l|
i-| l i -l--- ,ii - ln - -ilin li ni ri, n l i -nii-i i ilii r r| -i li ni
ri i ii |n li ni ri|
;l ,ii- ii, li i i,
zrzco i-n- i, i--i, coo o
l-i ii- l ll--
l- ;l -li ll~n , ri i cooooz
4. i -i | n; i| | lin lnri| i ln- rin||
5. i| | lin l~ - i ini i - l i -i- - li i- liln r| li ini|
6. iii lri i| | lin liln | ri, ili i-i - l | lin lin ri, lnnn i- l
ri r| rini|
7. i; i| ln i ;l i lii| i -i| ri llin ilin lnlli i i| - ln r| li i ni r|
210
Corporate Offce : 254-260, Avvai Shamugam Salai, Royappettah, Chennai- 600 014.
PROXY FORM
(To be flled in and signed by the shareholders)
Regd. Folio No. DP ID
Client ID
(If shares are not dematerialised) (If shares are dematerialised)
I / We, resident(s) of. ............................................................................. in the district of ............................................. in the State
of ....................... being a shareholder / shareholders of the Indian Bank hereby appoint Shri / Smt. .....................................
resident of ............................................................................. in the district of ................................. in the State of ..........................
or failing him / her, Shri / Smt. ................................................ resident of ............................................................................. in the
district of ................. in the state of as my / our proxy to vote for me / us and on my / our behalf at the
Sixth Annual General Meeting of the Shareholders of the INDIAN BANK to be held on Friday, the June 29, 2012 at 10.00 a.m.
at IMAGE Auditorium, MRC Nagar, Raja Annamalaipuram, Chennai - 600 028 and at any adjournment thereof.
Signed this .............................................................................................. day of ............................................................ 2012.
Please
affx 15
paise
Revenue
Stamp
Signature of the Proxy Signature of frst named / Sole shareholder
Name ......................................................
Address ......................................................
......................................................
......................................................
Instructions for signing and lodging the proxy form:
1. No instrument of proxy shall be valid unless,
in case of individual shareholders, it is signed by the shareholder or his / her attorney duly authorised in writing; a.
in case of joint holders, it is signed by the shareholder frst named in the register or his / her attorney duly authorised in b.
writing;
in case of body corporate signed by its offcer or an attorney duly authorised in writing. c.
2. An instrument of proxy shall be suffciently signed by any shareholder, who is, for any reason, unable to write his / her name,
if his / her mark is affxed thereto and attested by a Judge, Magistrate, Registrar or Sub-Registrar of Assurances or other
Government Gazetted Offcer or an Offcer of Indian Bank.
3. No proxy shall be valid unless it is duly stamped and deposited at the following address not less than FOUR DAYS before the
date of the Annual General Meeting, together with Power of Attorney or other authority, certifed as a true copy by a Notary Public
or a Magistrate, unless such a power of attorney or the other authority is previously deposited and registered with the Bank.
Indian Bank
Corporate Offce,
Investor Services Cell, 2nd Floor,
No.254-260, Avvai Shanmugam Salai
Royapettah, Chennai 600 014
Cameo Corporate Services Limited
Unit : Indian Bank
Subramanian Building
1, Club House Road
Chennai 600 002
4. An instrument of proxy deposited with the Bank shall be irrevocable and fnal.
5. In case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.
6. The shareholder who has executed an instrument of proxy shall not be entitled to vote in person at the Annual General
Meeting to which such instrument relates.
7. No person shall be appointed as duly authorised representative or a proxy who is an offcer or an employee of INDIAN BANK.
i i Annual Report 2011 - 12
211
ii- ii li i i zrzco, i-n- i, i--i, . coo o
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L F kku e sa i zo s' k d j r s l e ; o ki l f d ; k t k,
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_ | n d oe ma n a H$moBSw>pb Ho$Q>Cn p W{V n Mu g h EQ>r n mg O mar Z h t H$r O mEJ r&
212
Corporate Offce, Investor Services Cell,
254-260, Avvai Shamugam Salai, Royappettah, Chennai- 600 014.
ATTENDANCE SLIP
(To be surrendered at the time of entry to the Venue)
Date : June 29, 2012
Time : 10.00 a.m.
Venue : IMAGE, MRC NAGAR, RAJA ANNAMALAIPURAM, CHENNAI - 600 028.
Regd. Folio No. DP ID
Client ID
(If shares are not dematerialised) (If shares are dematerialised)
Name of the Shareholder
Number of Shares
I hereby record my presence at the 6th Annual General Meeting of the Bank held on June 29, 2012 at IMAGE, MRC Nagar,
Raja Annamalaipuram, Chennai - 600 028.
Signature of the Shareholder / Proxy / Authorized
Representative
Corporate Offce, Investor Services Cell,
254-260, Avvai Shamugam Salai, Royappettah, Chennai- 600 014.
ENTRY PASS
(To be retained throughout the meeting)
Date : June 29, 2012
Time : 10.00 a.m.
Venue : IMAGE, MRC NAGAR, RAJA ANNAMALAIPURAM, CHENNAI - 600 028.
Regd. Folio No. DP ID
Client ID
(If shares are not dematerialised) (If shares are dematerialised)
Name of the Shareholder
Number of Shares
Shareholders / proxy holders / authorized representatives are requested to produce the above Attendance slip, duly
signed in accordance with their specimen signature registered with the Bank, along with the entry pass, for admission
to the venue. The admission may, however, be subject to verifcation / checks, as may be deemed necessary. Under no
circumstances, will any duplicate Attendance Slip-cum-Entry pass be issued at the entrance to the meeting hall.