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PSB BANK

FINANCIAL ANALYSIS OF PSB BANK

A PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF


THE DEGREE OF

MASTER IN COMMERCE

UNDER THE FACULTY OF COMMERCE

BY

ISLAM BAIG
ROLL NO – 06
DIV – A

M.COM 2

UNDER THE GUIDANCE OF PROF. SAMEER NAIK

AKBAR PEERBHOY COLLEGE OF COMMERCE AND


ECONOMICS
ACADEMIC YEAR 2018-19

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PSB BANK

DECLARATION

I the undersigned Mr. ISLAM BAIG hereby, declare that the work embodied
in this project work titled “Financial Analysis of PSB BANK” forms
my own contribution to the research work carried out under the guidance of
Prof. Sameer Naik.

is a result of my own research work and has not been previously submitted to
any other University for any other Degree/ Diploma to this or any other
University?

Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

ISLAM BAIG

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Acknowledgment

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and


fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me


chance to do this project.

I would like to thank my Principal,Prof. Mohammed Tahir for providing the


necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator,Dr. Rajesh Bhoite for his
moral support and guidance.

I would also like to express my sincere gratitude towards my project guide


Prof. Sameer Naik whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various


reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.

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PSB BANK

EXECUTIVE SUMMARY
Indian banking retail sector is witnessing one of the most hectic marketing activities
of all times. There is always a ‘first mover advantage’ in an upcoming sector. The
idea is help to each other "banking business" means the business of receiving money
on current or deposit account, paying and collecting cheque drawn by or paid in by
customers, the making of advances to customers. The Industrial Development Bank of
India Limited commonly known by its acronym PSB is one of India's leading public
sector banks and 4th largest Bank in overall ratings.

Objective of the project

In this project or research of the PSB Bank and its joint ventures,
the main contention is:

i. To highlight the role and functions


ii. To specify products and services
iii. To understand the financial statements and wealth management
iv. The position of Non Performing Assets in PSB Bank

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TABLE OF CONTENTS PAGE


NO.

1 INTRODUCTION TO PSB BANK 3-10

-Introduction

-History

-Constitution of PSB

-Vision and Mission

-CSR

2 OBJECTIVES AND FEATURES OF PSB BANK 11-12

3 PRODUCTS, SERVICES AND FUNCTIONS 13-44

4 FINANCIAL STATEMENTS 45-46

5. JOINT VENTURES 47-51

6. NPA 52-60

7. DEVELOPMENT &STRATEGIES 61-62

8. SWOT ANALYSIS 63-65

9. STUDY OF PSB BANK 66-67

10. RECOGNITIONS 68-69

11. RECOMMENDATIONS 70-70

12. CONCLUSION 71-71

13. BIBLIOGRAPHY 72-72

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PSB BANK

1. INTRODUCTION TO PSB BANK

The Industrial Development Bank of India Limited, now more popularly known as
PSB Bank, was established as a wholly-owned subsidiary of Reserve Bank of India.
The foundation of the bank was laid down under an Act of Parliament, in July 1964.
The main aim behind the setting up of PSB was to provide credit and other facilities
for the Indian industry, which was still in the initial stages of growth and
development. In February 1976, the ownership of PSB was transferred to
Government of India. After the transfer of its ownership, PSB became the main
institution, through which the institutes engaged in financing, promoting and
developing industry were to be coordinated. In January 1992, PSB accessed domestic
retail debt market for the first time, with innovative Deep Discount Bonds, and
registered path-breaking success.

The following year, it set up the PSB Capital Market Services Ltd., as its wholly-
owned, to offer a broad range of financial services, including Bond Trading, Equity
Broking, Client Asset Management and Depository Services.

In September 1994, in response to RBI's policy of opening up domestic banking


sector to private participation, PSB set up PSB Bank Ltd., in association with SPSB.
In July 1995, public issue of the bank was taken out, after which the Government's
shareholding came down (though it still retains majority of the shareholding in the
bank). In September 2003, PSB took over Tata Home Finance Ltd, renamed ‘PSB
Home finance Limited’, thus diversifying its business domain and entering the arena
of retail finance sector.

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The year 2005 witnessed the merger of PSB Bank with the Industrial Development
Bank of India Ltd. The new entity continued to its development finance role, while
providing an array of wholesale and retail banking products (and does so till date).
The following year, PSB Bank acquired United Western Bank (which, at that time,
had 230 branches spread over 47 districts, in 9 states). In the financial year of 2008,
PSB Bank had a net income of Rs 9415.9 crores and total assets of Rs 120,601 crores.

The Present Today, PSB Bank is counted amongst the leading public sector banks of
India, apart from claiming the distinction of being the 4th largest bank, in overall
ratings. It is presently regarded as the tenth largest development bank in the world,
mainly in terms of reach. This is because of its wide network of 509 branches, 900
ATMs and 319 centers. Apart from being involved in banking services, PSB has set
up institutions like The National Stock Exchange of India (NSE), The National
Securities Depository Services Ltd. (NSDL) and the Stock Holding Corporation of
India (SHCIL).

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History

 1964 –Set up by an Actof Parliament as a subsidiary of RBI, PSB had


been a PolicyBank in the area ofindustrial financing and development

 1976 –Ownershiptransferred to Government from RBI

 1980 and 1990s –Playeda pioneering role in setting up the financial


architecture of thecountry, besides being a catalyst for investment inindustrial
and infrastructure sector.

 1994 –PSB Act amendedto permit private ownership up to 49.0%

 1995 –Domestic IPO,Government stake reduced to 72.0%

 Late 1990s – early 2000s–Changing environment gave commercial


banks greater business opportunities

 2003 –PSB Repeal Actpassed for conversion into a banking company

 2004 –PSB moved fromits DFI status into a full-service commercial


bank-named PSB Ltd. along with mandate for development financing

 2005 –Amalgamationof PSB Bank Ltd. with PSB Ltd.

 2006 - Amalgamation ofUnited Western Bank


- Complete networking(100.0% Core Banking)
- HR integration
- Organization structure redesigned on customer
segmentation basis for better customer focus and effective
business delivery

 2008 –Name changed toPSB Bank Ltd.

 Jan 2010 –Opened firstOverseas Branch at DIFC, Dubai.

 2011

- Merged itssubsidiaries PSB Home finance and PSB Gilts with


itself.
- Acquiredadditional 14.9% stake in PSB Trusteeship Services;
total holding 54.7%
- PSB bank has decided to opt for ‘Mystery Shopping’ method in
order to keep an eye on the feedback on customer experience,
their perception and expectations.
- PSB Bank Ltd has informed BSE that Government of India (GoI)
has, vide its letter dated December 27, 2011, advised that GoI is

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actively considering the Bank's request for capital support and


intends to infuse capital funds in the Bank by way of Preferential
Allotment of Equity in favour of GoI, subject to necessary
approvals from the Board of Directors and various other statutory
bodies.

 2012
- PSB Mutual Fund launched a new open ended fund of funds
scheme named “PSB Gold Fund&rdquo.
- PSB Bank cuts interest rates on home loans, slashes deposit.
- PSB Bank appoints B K Batra as whole time director.
- PSB Bank has launched an online portal, PSB Samriddhi, to sell its
Certificate of Deposits (CDs) to the individual and institutional
investors, thus adding another milestone in the increasing role of
technology in the banking sector.

 2013
- PSB inks MoC with Exim Bank to co-finance export oriented
companies -PSB Bank introduces online PPF Subscription Facility
- PSB Bank at the forefront of innovation Wins Finnoviti 2013
Award for PSB Samriddhi Portal -PSB Bank and EXIM Bank sign
MOC for Co-financing of Export-Oriented Companies 2014 -PSB
Bank the 1st PSU Bank to Launch eIA facility -PSB Bank
Inaugurates Zonal Office in Chandigarh -Rajbhasha Shield Award
to PSB Bank Ltd. -PSB Bank Wins the Golden Peacock CSR
Award

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INFORMATION ON CONSTITUTION OF PSB

Industrial Development Bank of India


Industrial Development bank of India (PSB) was constituted under Industrial
Development bank of India Act, 1964 as a Development Financial Institution and
came into being as on July 01, 1964. It was regarded as a Public Financial Institution
in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to
serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.

Industrial Development Bank of India Limited


In response to the felt need and on commercial prudence, it was decided to transform
PSB into a Bank. For the purpose, Industrial Development bank (transfer of
undertaking and Repeal) Act, 2003 [Repeal Act] was passed repealing the Industrial
Development Bank of India Act, 1964. In terms of the provisions of the Repeal Act, a
new company under the name of Industrial Development Bank of India Limited (PSB
Ltd.) was incorporated as a Govt. Company under the Companies Act, 1956 on
September 27, 2004. Thereafter, the undertaking of PSB was transferred to and vested
in PSB Ltd. with effect from the effective date of October 01, 2004. In terms of the
provisions of the Repeal Act, PSB Ltd. has been functioning as a Bank in addition to
its earlier role of a Financial Institution.

Merger of United Western Bank with PSB Ltd.


The United Western Bank Ltd. (UWB), a Satara based private sector bank was placed
under moratorium by RBI. Upon PSB Ltd. showing interest to take over the said bank
towards its further inorganic growth, RBI and Govt. of India amalgamated UWB with
PSB Ltd. in terms of the provisions of Section 45 of the Banking Regulation Act,
1949. The merger came into effect on October 03, 2006.

Change of name of PSB Ltd. to PSB Bank Ltd.


In order that the name of the Bank truly reflects the functions it is carrying on, the
name of the Bank was changed to PSB Bank Limited and the new name became
effective from May 07, 2008 upon issue of the Fresh Certificate of Incorporation by
Registrar of Companies, Maharashtra. The Bank has been accordingly functioning in

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its present name of PSB Bank Limited.

Merger of PSB Home Finance Ltd. and PSB Gilts with PSB Bank Ltd.
Two wholly owned subsidiaries of PSB Bank Ltd. viz. PSB Home Finance Ltd. and
PSB Gilts Ltd. were amalgamated with PSB Bank Ltd. under Section 391-394 of the
Companies Act, 1956 vide Government of India, Ministry of Corporate Affairs order
dated April 08, 2011. The appointed day under the scheme of amalgamation has been
approved as January 01, 2011. In terms of Section 394(3) of the Companies Act 1956,
the Government of India's above Order has been filed with the Registrar of
Companies on April 26, 2011.

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PSB BANK

VISION AND MISSION OF PSB BANK

VISION

“To be the most preferred and trusted bank enhancing value for all stakeholders”

MISSION

 Delighting customers with our excellent service & comprehensive suite of


best-in-class financial solutions

 Touching more people’s lives with our expanding retail footprint while
maintaining our excellence in corporateand infrastructure financing

 Continuing to act in an ethical, transparent and responsible manner,


becoming the role model for corporate governance

 Deploying world class technology, systems and processes to


improve business efficiency and exceed customers' expectations

 Encouraging a positive, dynamic and performance-driven work culture to


nurture employees, grow them and build a passionate and committed work
force

 Expanding our global presence

 Relentlessly striving to become a "Greener Bank"

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PSB BANK

Corporate Social Responsibility

The erstwhile Industrial Development Bank of India (PSB) was the apex institution
for providing project finance to the industrial and infrastructure sector and a policy
bank in the area of industrial financing and development. It also played a pioneering
role in setting up the financial architecture of the country. Its commercial banking
successor entity - today’s PSB Bank - came into being on October 1, 2004.

Corporate Social Responsibility lies at the heart of all our activities since our
establishment fifty years ago. It has been our guiding force long before it became a
mandate. PSB, in association with National Association for the Blind, established the
NAB-PSB Polytechnic for the Blind at Ambernath, Maharashtra in the year 1981.
True to its image of a socially responsive organisation, PSB constructed houses and
access roads in ShirsalTanda village in Latur, Maharashtra that was affected by a
devastating earthquake in 1993. PSB displayed the same level of responsiveness in
times of natural calamities by providing immediate disaster relief in earthquake-hit
areas of Gujarat (2001), tsunami-hit southern Indian states (2004), flash floods-hit
state of Uttarakhand (2013) and the cyclone-hit Odisha (2013).

We have been progressively ramping up our activities in the CSR arena, both directly
as well as in association with reputed organizations, in order to make a telling impact
on targeted strata of society. Activities include, but are not limited to, collaborative
long-term funding for projects designed advancement of vocational & employable
skills, enhancement of livelihood opportunities for disadvantaged strata of the society,
particularly women, across various states; rural electrification through solar street
lights; financial aid for socio-economic empowerment of PwDs and other
underprivileged sections of society, promotion of healthcare, improved access to
health services and sanitation facilities, supplementing environmental sustainability,
and holistic development of villages by undertaking planned interventions, etc. Our
CSR activities are inclusive in nature and the beneficiaries spread across all sections
of the community.

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PSB BANK

2. OBJECTIVES AND FEATURES OF PSB BANK

DIFFERENT FROM OTHER BANKS

PSB bank is different from others because other banks deal in banking business but
this bank first deals in financing the various industries for development in the country
and then does the banking business. Even now this bank provides finance to various
industries for the development. It also finances to film business. Before diversification
of PSB to bank it used to deal in financing business to various industries and firms.

OBJECTIVES

The main objectives of PSB is to serve as the apex institution for term finance for
industry in India.

Its objectives include


 Co-ordination, regulation and supervision of the working of other financial
institutions such as IFCI, ICICI, UTI, LIC, Commercial Banks and SFCs.
 Supplementing the resources of other financial institutions and thereby
widening the scope of their assistance.
 Planning, promotion and development of key industries and diversifications of
industrial growth.
 Devising and enforcing a system of industrial growth that conforms to national
priorities.

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FEATURES

The PSB has been established to perform the following functions-

 To grant loans and advances to IFCI, SFCs or any other financial institution by
way of refinancing of loans granted by such institutions which are repayable
within 25 year.
 To grant loans and advances to scheduled banks or state co-operative banks by
way of refinancing of loans granted by such institutions which are repayable in 15
years.
 To grant loans and advances to IFCI, SFCs, other institutions,scheduled banks,
state co-operative banks by way of refinancing of loans granted by such institution
to industrial concerns for exports.
 To discount or rediscount bills of industrial concerns.
 To underwrite or to subscribe to shares or debentures of industrial concerns.
 To subscribe to or purchase stock, shares, bonds and debentures of other financial
institutions.
 To grant line of credit or loans and advances to other financialInstitutions such as
IFCI, SFCs, etc.
 To grant loans to any industrial concern.
 To guarantee deferred payment due from any industrial concern.
 To guarantee loans raised by industrial concerns in the market orfrom institutions.
 To provide consultancy and merchant banking services in or outside India.
 To provide technical, legal, marketing and administrative assistance to any
industrial concern or person for promotion, management or expansion of any
industry.
 Planning, promoting and developing industries to fill up gaps in the industrial
structure in India.
 To act as trustee for the holders of debentures or other securities.

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3. PRODUCTS, SERVICES AND FUNCTIONS OF PSB

The major participants of the Indian financial system are the commercial banks, the
financial institutions (FIs), encompassing term-lending institutions, investment
institutions, specialized financial institutions and the state-level development banks,
Non-Bank Financial Companies (NBFCs) and other market intermediaries such as the
stock brokers and money-lenders. The commercial banks and certain variants of
NBFCs are among the oldest of the market participants. The FIs, on the other hand,
are relatively new entities in the financial market place.

Indian banking and financial systems in the new millennium is facing a series of new
challenges. Indian banking systems have several outstanding achievements on the
basis of its different functions. Indian banking is no longer confined to metropolitan
cities and large towns, in facts; Indian banks are now spread out in the remote areas of
our nation. This project facilitate us to know about the functioning of banks i.e.
different types of a/c’s in banks, different systems of banks, types of banks, etc. and
also it includes millennium changes in banking system such as internet banking, credit
cards, etc.

Banks are among the main participants of the financial system in India. Banking
offers several facilities & Opportunities. This section provides comprehensive and
updated information, guidance and assistance on all areas of banking in India.

Bank of Hindustan, set up in 1870, was the earliest Indian Bank. Banking in India on
modern lines started with the establishment of three presidency banks under
Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of
Madras. In 1921, all presidency banks were amalgamated to form the Imperial bank
of India .The commercial banking structure in India consists of: Scheduled
Commercial Banks & Unscheduled Banks. Banking Regulation Act of India, 1949
defines Banking as "accepting, for the purpose of lending or investment of deposits of
money from the public, repayable on demand or otherwise and withdrawals by
cheques, draft, order or otherwise."

The arrival of foreign and private banks with their superior state-of-the-art
technology-based services pushed Indian Banks also to follow suit by going in for the

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latest technologies so as to meet the threat of competition and retain customer base. In
addition, Banks are allowed to perform certain activities, which are ancillary to this
business of accepting deposits and lending. A bank's relationship with the public,
therefore, revolves around accepting deposits and lending money. Another activity
that is assuming increasing importance is transfer of money - both domestic and
foreign - from one place to another. This activity is generally known as "remittance
business" in banking parlance. The so-called forex (foreign exchange) business is
largely a part of remittance albeit it involves buying and selling of foreign currencies.

The law governing Banking Activities in India is called "Negotiable Instruments Act
1881".

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PRODUCTSOF PSB BANK IN DETAILS:

THE TRADITIONAL BANKING ACTIVITIES CAN BE CLASSIFIED AS:

1) Accepting Deposits from public/others (Deposits).

2) Lending money to public (Loans).

3) Transferring money from one place to another (Remittances).

4) Acting as trustees.

5) Acting as intermediaries.

6) Keeping valuables in safe custody.

7) Collection business.

8) Government business.

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1. ACCEPTING DEPOSITS IS ONE OF THE TWO MAJOR ACTIVITIES OF


THE BANKS:

Banks are also called custodians of public money. Basically, the money is accepted as
deposit for safekeeping. But since the Banks use this money to earn interest from
people who need money, Banks share a part of this interest with the depositors.
However, accepting deposits and keeping track of the money involves a lot of book-
keeping and other operations.

The deposits can be of different types:

i. Saving deposits – Saving accounts are opened for the purpose of mobilizing
savings. This account may be single or joint. But, the rate of interest is low i.e
4-5% p.a. withdrawals are subject to certain restrictions. It is suitable for
salary and wage earners.

ii. Fixed deposits – Fixed deposits are deposits at one time for a fixed period
specified in advance. The rate of interest is high which varies with the period
of deposits. No withdrawal is allowed during the period. The depositor get a
fixed deposit receipt which is non-transferable. Those who have a surplus fund
open fixed deposit account.

iii. Current deposits – Businessmen open current account to operate any number
of times during a working day. It is also called demand deposit account
because bank has to return the deposit on demand. Withdrawals are freely
allowed. No interest is paid. Infact, there are services charges. Overdraft
facilities are given in case of current accounts only. Businessmen operate it.

iv. Recurring deposits – In recurring deposit account a certain sum of money is


periodically deposited into the banks. Salaried persons and petty traders
operate such type of account. Withdrawals are permitted only after the expiry
of certain period. A high rate of interest is paid.

2. LENDING MONEY TO THE PUBLIC:

Lending money is one of the two major activities of any Bank. In a way, the Bank
acts as an intermediary between the people who have the money to lend and those

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who have the need for money to carry out business transactions.This activity places its
own requirements on the resources of the Bank.

For effective functioning of this, a bank must possess:


 Sufficient deposits.
 Skills to appraise the potential borrowers and the activity.
 Legal skills for documentation.
 Legal skills for recovery of its dues through the courts.
 Skills to follow up and monitor the end-use of money lent by it.
 An effective credit delivery system.
 Review of credit portfolio.

3. TRANSFERRING MONEY FROM ONE PLACE TO ANOTHER:

Apart from accepting deposits and lending money, Banks also carry out, on behalf of
their customers the act of transfer of money - both domestic and foreign. - From one
place to another. This activity is known as "remittance business”. Banks issue
Demand Drafts, Banker's Cheques, Money Orders etc. for transferring the money.
Banks also have the facility of quick transfer of money also know as Telegraphic
Transfer or Tele Cash Orders.

To deliver this service, a Bank must have:


i. An effective branch network or correspondent relationships.
ii. A system of Inter branch reconciliation
iii. A system of reconciliation with the correspondents
iv. Availability of funds at all the centres

4. TRUSTEE BUSINESS:

Banks also act as trustees for various purposes. For example, whenever a company
wishes to issue secured debentures, it has to appoint a financial intermediary as trustee
who takes charge of the security for the debenture and looks after the interests of the
debenture holders. Such entity necessarily have to have expertise in financial matters
and also be of sufficient standing in the market/society to generate confidence in the
minds of potential subscribers to the debenture. While Banks are the natural choice
for the customers, Banks must possess the following to be effective and retain that:
 A track record of sufficient length.
 Facilities for safekeeping.

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 Legal skills to take necessary steps for the trusteeship.

5. KEEPING VALUABLES IN SAFE CUSTODY:

Bankers are in the business of providing security to the money and valuables of the
general public. While security of money is taken care of through offering various type
of deposit schemes, security of valuables is provided through making secured space
available to general public for keeping these valuables. These spaces are available in
the shape of LOCKERS. The latter are small compartments with dual locking facility
built into strong cupboards. These are stored in the Bank's Strong Room and are fully
secure. The hirer or the Bank can neither open lockers individually. Both must come
together and use their respective keys to open the locker. To make this facility
available to its customers, the Bank must provide:
i. Physical structures to house the lockers
ii. Locker cabinets
iii. Security arrangements

6. GOVERNMENT BUSINESS:

Earlier Government business used to be exclusively carried out by Government


Treasuries where all type of transactions took place. However, now Banks act on
behalf of the Government to accept its tax and non tax receipts. Most of the
Government disbursements like pension payments and tax refunds also take place
through banks. While the Banks carry out this business for a fee to be paid by the
Government, providing this service requires a lot of effort and organisation. The
Banks must provide:
i. Interface with the public.
ii. Liaison with local government departments and government treasury.
iii. Arrangement for reconciliation with the Government Accounts Department.
iv. Necessary infrastructure, stationery etc. to cater to the numbers.

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MODERN BANKING ACTIVITIES:

THE MODERN BANKING ACTIVITIES CAN BE CLASSIFIED AS:

CONSUMER FUNCTIONS

1. Merchant banking

2. Consumer loans

3. Venture capital

4. Banking mutual funds

1. MERCHANT BANKING

Merchant banking may be defined as, "an institution, which covers a wide range of
activities such as management of customer services, portfolio management, credit
syndication, acceptance credit, counselling, insurance, etc.
The notification of the Ministry of Finance defines a merchant banker as, "any person
who is engaged in the business of issue management either by making arrangements
regarding selling, buying or subscribing to the securities as managers, consultant,
adviser or rendering corporate, advisory service in relation to such issue
management."

SERVICES OF MERCHANT BANKS:

 Project Counselling
 Issue Management
 Marketing
 Pricing of Issues
 Post-issue Management
 Underwriting of Public Issue
 Managers, Consultants or Advisers to the Issue
 Portfolio Management
 Advisory Service Relating to Mergers and Takeovers
 Off Shore Finance
 Non-resident investment

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 Loan Syndication
 Corporate Counselling

2. CONSUMER LOANS

Banks has personal loan scheme under which consumer durable items can be
purchased. Loans are given to salaried employees and professional for periods ranging
from 12 to 48 months. No guarantee is insisted upon for consumer credit. Many other
banks have different versions of consumer finance schemes. The general features of
these schemes are more or less the same with minor variations in the rate of interest or
repayment period or insistence on a third party guarantee. Consumer finance has
many advantages for banks. Credit expansion is fast, substantial and diversified.
Consumer credit is only for short and medium periods, thereby facilitating smooth
asset liability management.

3. VENTURE CAPITAL

Venture capital is long-term risk capital to finance high technology projects, which
involve risk, but at the same time has strong potential for growth. Venture capitalist
pool their .resources including managerial abilities to assist new entrepreneurs in the
early yean of the project.A venture capital company is defined as "a financing
institution, which joins an entrepreneur as a co-promoter in a project and shares the
risks and rewards of the enterprise".

4. BANKING MUTUAL FUNDS

The Securities and Exchange of Board of India Regulations, 1993 defines a mutual
fund as "a fund established in the form of a trust by a sponsor, to raise monies by the
trustees, through the sale of units to the public, under one or more schemes, for
investing in securities in accordance with these regulations".
According to Weston J. Fred and Brigham, Eugene F., Unit Trusts are "corporations
which accept dollars from savers and then use these dollars to buy stocks, long term
bonds, short term debt instruments issued by business or government units; these
corporations pool funds and thus reduce risk by diversification.

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CORPORATE FUNCTIONS

1. Project finance scheme:

2. Infrastructure finance

3. Working capital finance

4. Cash management services

5. Trade finance

6. Tax payments

7. Direct discounting of bills

8. SME finance

.
1) PROJECT FINANCE

Under the Project Finance scheme PSB Bank provides finance to the corporates for
projects. The Bank provides project finance in both rupee and foreign currencies for
Greenfield projects as also for expansion, diversification and modernization. PSB
Bank follows the Global Best Practices in project appraisal and monitoring and has a
well-diversified industry portfolio. PSB Bank has signed a Memorandum of
Understanding (MoU) with LIC in December 2006 for undertaking joint and take-out
financing of long-gestation projects, including infrastructure projects.

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2) INFRASTRUCTURE FINANCE

PSB Bank has been actively participating in structuring and financing of


infrastructure projects in the areas of power, telecom, roads, seaports, railways and
logistics as well as Special Economic Zones. The Bank has also taken initiatives in
funding modernization of airports, besides part-financing development of
international airports and seaports under the Public-Private Partnership route. The
Bank is also a member of the Core Committee of the Government set up for
finalisation of the Ultra Mega Power Projects. PSB Bank interacts with Government
and other stakeholders and market participants, on policy and operational issues,
facilitating smooth flow of funds to infrastructure sector.

3) WORKING CAPITAL FINANCE

Working Capital facility is provided to the industry to finance day-to-day production


& sales. For production, funds are generally required for purchase of raw materials,
stores, fuel, for payment of labour, power charges, for storing finished goods till they
are sold out & for financing the sales by way of sundry debtors / receivables. Cash
Credit facility is granted to the customers to bridge working capital gap. The Bank
also provides short term loan facility for a period of up to 1 year for the purpose of
bridging temporary cash flow mismatches arising due to various reasons like non-
realization of receivables in time, routine capex etc.

4) CASH MANAGEMENT SERVICES

PSB Bank is a technology-led & service driven, financial services company managed
with intellectual integrity. PSB Bank Cash Management Services (CMS) has achieved
the ISO 9000 certification for its strong product and technology background. Cash
Management Service offers three products – Collections, Payments &Cashweb – the
online product offering.
The key product features of PSB Bank CMS are :-
Confirmed arrangements
Outsourced logistics
Enhanced clearing network
Pooling / Single Payout Account
Customised Reporting

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Detailed information capturing

The technology advantage helps us in consistently delivering superior products,


convenient access channels and efficient service to customers.Cash Management is
the process of optimizing receivable and payables while ensuring predictability in the
cash flows. Efficient Cash Management is about getting funds in time, quick transfers,
quick realization of local and outstation cheques, easy disbursements, account
reconciliation, controlled processes and customized MIS. Thus Cash Management
Services (CMS) eliminates the inherent delays of a funds transfer mechanism, thus
enhancing liquidity and ensuring optimum planning and utilization of funds.

PSB Bank Cash Management Services include the following basic components:
 Collection or Receivables Management
 Payment or Payables Management

Benefits of Cash Management Services:

i. Financial Benefits
Collection & Disbursement products enable to reduce the interest cost on the
borrowings by getting access to the funds faster there-by reducing the borrowings.
Additionally, it helps to improve the liquidity position by realizing cheques earlier,
there-by improving the Balance Sheet and Financial Ratios.

ii Operational Benefits
Banking and Treasury functions can be managed with far less number of people as
most of the funds and liquidity management functions get outsourced to the Bank and
in addition will require lesser manpower for performing various payment related
activities.

iii. Control Benefits


PSB Bank CMS products allows to maintain better control over the various Banking
and Treasury related activities, improve speed and ease of reconciliation and reduces
the risk of fraud.

5) TRADE FINANCE

PSB Bank has set up dedicated trade sales teams for product offerings at key locations
to have a focused and specialized approach to trade services. PSB Bank carries out
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PSB BANK

Trade Finance operations through designated branches, which provide Trade Finance
Products viz., Letters of Credit, Bank Guarantees, Collections, Remittances, Forward
Contracts, Packing Credit, Post Shipment Finance, Maturity Factoring, Invoice
Discounting and Trade Advisory Services. It is noteworthy that PSB Bank was among
the select banks under the auspices of Indian Banks' Association (IBA) to test, pilot
and implement Structured Financial Messaging System (SFMS) for domestic trade
transactions. PSB Bank also entered into a tie-up with Export Credit Guarantee
Corporation (ECGC) for financing the export receivables under the full-fledged
factoring facility of ECGC.

6) TAX PAYMENTS

PSB Bank offers an wide array of services under the umbrella of Central and State
Government agency business (both direct and indirect taxes). PSB Bank is the first
bank to offer payment facility of direct taxes through Internet and is also the first bank
to offer online payment of Central Excise Duty and Service Tax through the Internet.
PSB Bank has the mandate to collect direct taxes at several branches and extension
counters across the country and also to collect Excise Duty and Service Tax at select
branches. Additionally, PSB Bank has the mandate to collect sales tax and stamp duty
for certain State Governments and import/export license fees over the Internet.

7) DIRECT DISCOUNTING OF BILLS

For financially sound machinery / equipment manufacturer, who wish to promote


sales, PSB Bank provides deferred credit facility for sale / purchase of indigenous
machinery / equipment under its easy to operate direct discounting scheme.
Assistance would be 100% of the total value (including insurance, taxes & freight).
Interest rate / discount rate would be as prevalent at the time of discounting of bills,
depending on monthly / quarterly / half-yearly/ yearly payments and according to
temporal profile of bills.

8) SME FINANCE

PSB Bank has been actively engaged in providing a major thrust to financing of
SMEs. With a view to improving the credit delivery mechanism and shorten the Turn
Around Time (TAT), PSB Bank has developed a special business model to serve the
SMEs in India. The Bank has set up 24 City SME Centres (CSCs) across India in
Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Pune to name a few. These

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CSCs are the Bank's hubs while dedicated SME desks have been set up in several
branches across these cities. These branches serve as front offices for sales delivery
and customer service.
PSB Bank has a wide variety of products and services catering to the needs of
different segments within small business. Long years of experience in being the
trusted partner of large and mid corporate has translated into deeper understanding of
needs of business and industries. The Bank has parameterised products for
transporters, dealers, traders, and vendors. In addition, it has a separate Transaction
Banking Group that has expertise in products like cash management services, letter of
credit, bank guarantees and treasury products.

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PSB BANK

PERSONAL BANKING

A) SAVINGS ACCOUNT
B) POWER KIDZ
C) CURRENT ACCOUNT SERVICES
D) FIXED DEPOSIT SERVICES
E) LOANS AND ADVANCES
F) NRI SERVICES
G) 24 HOURS BANKING
H) INSURANCE
I) CAPITAL MARKET
J) ASBA
K) OTHER FUNCTIONS

A) Savings account

The Super Savings Account is a complete financial package that provides with easy
access to a person’s money and complete banking convenience too. It offers a whole
range of options for optimal management of your money. Which means, with Super
Savings Account, one not only save his money but also make it grow.
So apart from the basic benefits of a savings account, bank offer various options for
faster transfer of funds, options to pay bills or tax online and options to grow money
at attractive interest rates in the savings account. All these features are offered for a
minimum balance of Rs 5,000.
o Instant Banking
o International Debit Card
o Family Account
o Quick Money Transfer
o Easy Payments
o Bank on the Move
o Profit from your Account
o Value Added Services
o Travel and Gift Solutions

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B) POWER KIDZ

With the growing focus on the Kids segment and its requirements, PSB Bank realized
the importance of introducing a product specifically catering to this market. Now-a-
days, parents start saving money for their children right from the day they are born.
So, to support this thought PSB has designed this POWER KIDZ A/C
It is a piggy bank for the Kids that will not just keep their money safe but provide an
interest on the same, allow them to take out money when required, make smart
purchases by way of exclusive debit card, teach them to operate their account in a
better and convenient way and also advise them from time to time about better
investment options.
Kids at a young age can start saving the amount received from parents/guardian into
these account which will not just inculcate the habit of saving but also act as an
instrument in guiding them into financial sector. Coupled with various training
programs and with insight to various other products children can make better
investment decisions in future. They can even have the benefit by availing education
loan from PSB bank at a competitive interest rate for funding their higher education in
India and Overseas.

OTHER SAVING ACCOUNT

1 SABKA SAVING ACCOUNT (NO FRILL ACCOUNT )


2 SUPER SHAKTI SAVING ACCOUNT
3 JUBILEE PLUS SAVING ACCOUNT (SENIOR CITIZEN)

C) CURRENT ACCOUNT SERVICES

Roaming Current Account. - A Current account for every business

No two businesses are the same, which is why PSB Bank offers five Roaming Current
Accounts – Basic, Special, Bronze, Silver andGold to suit the business needs. Based
on the balance, one choose to maintain in the account, he can then choose his specific
Roaming Current Account accordingly. PSB Bank Current Accounts not only gives
the flexibility of banking anytime, anywhere, but also allows to save more money
while doing business across the country. Roaming Current Account from PSB Bank
comes packed with a host of services and facilities that makes banking convenient and
hassle-free. With services such as multi-city and multi-branch banking, electronic

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funds transfers, national clearing in selected cities, 24x7 cash withdrawals from
ATMs, Internet Banking, Phone Banking and SMS Banking, a person is assured of
faster remittances and collection of funds at competitive rates. What’s more, extended
PSB Banking hours and Sunday Banking, all this to simplify banking for customer!

Features
o Make payments to vendors in different cities without any costs
o Receive payments from customers without any charge deducted from the amount
o Do all the banking right from wherever a person travel
o Most importantly, maintain better relations with the vendors and customers.

One can open a Current Account (Basic Roaming Current Account) with only Rs
10,000. He has to maintain an average quarterly balance of Rs 10,000. But this is
nothing compared to a host of services and facilities that will make your current
account work more effectively and efficiently.

Other Services

Here is a list of other services that are offered on current account:


i) Free Services:
PSB Bank’s Roaming Current Accounts offers a variety of free services that one can
avail of.

ii) Multi-city and multi-branch banking:


The vast networks of bank allows customer to access his account, deposit cash
and cheques and withdraw cash from any of their branches across cities.

iii) Electronic funds transfers:


At PSB Bank, superior technology speaks for itself. Bank’s electronic funds transfer
allows one to transfer funds electronically instantly.

iv) National clearing:


Bank’s national clearing avails a person faster and efficient cheque collection over 15
cities.

v) ATM Card:
One can use the ATM card for cash deposits, withdrawals and more. The cash

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withdrawal limit per day is Rs 25,000. This service is available only for individual
and sole-proprietorship current accounts.

D) FIXED DEPOSIT SERVICES

i. Suvidha Fixed Deposits

PSB Bank Suvidha Fixed Deposits have always stood for safety, credibility and
attractive rates of interest. What’s more,the interest rates are among the highest in the
industry so that one get the benefit of high rates of return on savings. These deposits
have been further packed with the following features :
 Anytime access of deposits
 Deposits across tenures of 15 days to 10 years
 Various Options to suit the needs.

ii. Monthly Quarterly Income Plans

For those who seek regular incomes


A great option for people who require interest income at regular intervals. The interest
income will be credited automatically into savings account at the interval
(Monthly/Quarterly) specified by the person. The deposit is automatically renewed on
maturity so that the person doesn’t lose interest for a single day. What's more one can
book Fixed Deposit with only Rs. 10,000.

iii. Quarterly Compounding Fixed Deposit

Ideal for those how want a higher rate of return combined with a low risk Fixed
Deposit
This option re-invests the interest earned on the deposit, every quarter resulting in a
higher rate of return. For example, the interest rate for a 2 years + 1 day deposit is
5.80% p.a. but the effective yield is higher at 6.11% p.a. on account of re-investment
of the interest earned. Also, there is automatic renewal of FDs on maturity hence you
don't lose interest for a single day. What's more one can book your Fixed Deposit with
only Rs. 10,000

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iv. Recurring Deposit

Ideal for those who want to save a fixed sum every month
This type of deposit helps add to the savings at complete convenience. one can start
saving any amount from Rs. 100 to Rs. 1 lakh every month. The amount as decided
by the person, will be deducted every month from savings account. Further, there is
no Tax deducted at source on these deposits and also no charges for executing the
standing instructions.

v. Sweep in Savings
Earn fixed deposit rate on your savings account
This option offers with the flexibility of a savings account combined with the safety
and higher rate of interest of an FD. Open a zero balance savings account and link
multiple FDs to the savings account (minimum FD relationship required is Rs.
50,000). If there are no funds in the savings account the same can be broken (in
multiples of Rs. 1,000) from the FD through a debit card or a cheque. Moreover, the
FD booked last will be broken first so that one lose the least amount of interest.

vi. Overdraft against Fixed Deposit

Tide over your urgent cash requirements without breaking your Fixed Deposit
This option allows one to continue earning the higher rate of interest on an FD and at
the same time, one can meet his monetary requirements. An overdraft of upto 90% of
the FD/Multiple FDs held with the bank, will be setup in your zero balance savings
account. The overdraft can be availed against an FD amount of Rs. 50,000 or higher at
very competitive rates. Moreover, the overdraft is first given on the FD earning least
interest so that interest payout is minimized.

vii. Senior Citizens Fixed Deposit

Senior citizen, have the advantage of earning higher interest on the regular income
plans and reinvestment plans. The interest rates for senior citizens are higher by
0.50% pa. One can choose from tenure ranging from 46 days to 10 years for minimum
deposits starting from Rs 10,000.

viii. Suvidha Tax Saving Fixed Deposit

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At PSB Bank it's been the constant endeavour is to provide with world-class products
and services that help to improve the standard of living and plan ahead for the future.
With the same spirit in mind, we bring to the 'PSB Suvidha Tax-Saving Fixed
Deposit' which gives dual benefits of tax exemption u/s 80c of the Income Tax Act
and higher returns on the investments with interest rates at 8.5%* p.a. for regular
deposits and 9%* p.a. for Senior Citizens.

ix. Other benefits

 Zero Balance Savings Account


 Free local Cheque Book
 International ATM-cum-Debit Card
 Free Internet Banking facility

x. PSB ‘Super Shakti’ Account for Women

Understanding the specific requirements of the customers, we at PSB Bank have


introduced a special Savings Account for Women, which we have coined ‘Super
Shakti’. Not only this, along with this account it offer one Zero Balance Savings
Account absolutely free for her child below the age of eighteen years. The Account
offers a host of features, which include:
 Free Transactions at other Bank ATMs.
 An account opening balance of just Rs.1000
 An AQB requirement of Rs. 5000.
 A Zero balance account for your child below the age of 18 years.
 Debit Card Free for the first year.
 A free Personalised /Customised PAP Cheque Book.
 Quarterly Account Statement
 Free Demand Draft at Home Branch
 Free Payorder for payment of School/colleges fees and remitting funds to their
parents.
 Phone Banking
 Mobile Banking
 Free Statement by e-mail
 Demat Account at just Rs.200.
 Locker services at a concessional rate

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PSB BANK

 Investment advisory services.


 Free local personalized Cheque Book

E) LOANS AND ADVANCES

a.HOME LOANS

 Home, sweet home, built out of one dreams. A place where one return after a hard
day's work and relax, a place where one share precious moments with your family.
A place that gives one a sense of belonging. PSB Bank helps one to realize your
long cherished dream of owning one’s home through hassle free and customer
friendly home loans.
 Presenting PSB Bank's ultra flexible home loan you have been looking for. We
realize what owning your home means to you and your family.
 One can avail of the Home Loans for constructing a home, purchasing a ready
built house/flat, residential plot and even for re-financing existing loans one may
have availed from other banks or housing finance companies.

Advantages

 Maximum Funding
 Flexibility of choosing between Floating or Fixed interest rate
 Attractive rate of interest
 EMI on daily reducing balance
 Personalised doorstep service
 Simple documentation
 Legal and technical assistance
 Balance transfer facility

Features
 Tenor of a home loan can be up to 25 years for a resident individual whereas
for NRIs the maximum tenure is 15 years subject to maximum age of 60 years
at maturity.
 Loan can be applied for a maximum of 90% of the property value subject to
credit discretion.

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 Security for the loan is a first mortgage of the property to be financed,


normally by way of deposit of the title deeds or such collateral security as may
be necessary.
 Title to the property should be clear and free from encumbrance, i.e., without
any pending legal litigation adversely affecting the ownership of the property.
 Other parameters considered include an account of your age, income, number
of dependents, financial stability and co-applicant’s income

Tax benefits

As per the current finance bill one can get:


 A maximum deduction of Rs. 1,50,000 on your income towards interest paid on
your home loans u/s 24
 A maximum deduction of Rs. 1,00,000 on the principal repaid u/s 80 CCE

The above benefits are available subject to fulfilling certain conditions, for which one
should refer the IT Act 1961.

Repayment

We normally repay the loan through Equated Monthly Installments (EMIs)


comprising both principal and interest. If the final disbursement is however still
pending, pay interest on the portion of the loan disbursed before the EMI commences.
We could also structure our loan repayment to suit your convenience. For instance,
the installments could be lower in the initial years and could gradually increase over a
period or vice versa. The maximum possible tenure for a Resident Indian is 25 years if
employed and 15 years if self employed. While the same for an NRI is 15 years.

Eligibility
Following are eligible to apply for an PSB Home Loan:
 Salaried individuals
 Self employed professionals/businessmen
 NRIs
One can include spouse/parents/children as co-applicant if he requires higher
eligibility subject to maximum of three applicants.

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Rate of interest

Loan Tenure ROI


1-25 years (Up to 20 lacs) (BPLR-3.75) 9.00 %
1-25 years (Above 20 lacs) (BPLR-3.25) 9.50 %

Home Loans (Fixed )


Options ROI
Fixed for 3 years 11.00 %
Fixed for 5 years 11.25 %

b. LOAN AGAINST PROPERTY

PSB realise how important it is to raise money in the face of exigencies. The bank
through these difficult situations through the customer friendly Loans against property
(Residential & Commercial) product. Loans could be used for:
 Education
 Marriage
 Business
 Purchase or improvement of property
 Medical treatment or any other personal need
Maximum amount possible is Rs 500, 00,000 subject to repayment capacity and value
of property.

Advantages
 Tenor up to 15 years
 Attractive Rate of Interest
 Maximum Funding
 Interest rate on daily reducing balance
 Fixed and floating interest rate options
 Simple documentations

c. EDUCATION LOANS
Education loans from PSB Bank aim at providing financial support to deserving/
meritorious students for pursuing higher education in India and abroad. With an array
of courses to choose from and easy repayment options, PSB Bank makes sure one get
complete financial backing For job oriented professional/ technical courses offered by

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reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by
CIMA- London, CPA in USA etc.

Repayment terms
The repayment of loan to begin after the course period + 1 year or 6 months after
getting a job, whichever is earlier. The loan to be repaid within 5-7 years (maximum
tenor 84 months) after commencement of repayment.

Rate of interest

Up to Rs. 4 lakhs 11.75 % (BPLR - 1%)


Above Rs. 4 lakhs 12.75%(BPLR )

Expenses covered
 Fee payable to college/ school/ hostel
 Examination/ Library/ Laboratory fee
 Purchase of books/ equipments/ instruments/ uniforms
 Caution deposit/ building fund/ refundable deposit supported by Institution
bills/ receipts
 Travel expenses/ passage money for studies abroad
 Purchase of computers - essential for completion of the course
 Any other expense required to complete the course - like study tours,
project work, thesis, etc.

d. PERSONAL LOANS

Personal Loans from PSB comes with an insurance cover. This means when times are
tough, one have an insurance cover to take care of the EMI's.
 In case of death or disability due to an accident, the principle outstandings will
be paid by the insurance company.
 In case of loss of job, the insurance company will pay the EMIs for up to 3
months
Also one can transfer your existing loan to PSB and save up to Rs 50,000

Eligibility
Following are eligible to apply for an PSB Personal Loan:
 Salaried individuals
 Doctors / dentist

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PSB BANK

 Professionals
 Proprietors and partners

Repayment

The terms vary as for salaried people its 12-60 months and for proprietors or
professionals its 12-36 months.

F) NRI SERVICES

TYPES OF ACCOUNT

1) Non Resident External Account (NRE)

 Minimum balance required


CurrentAccount :Rs 10,000
SavingsAccount :Rs 5,000
Term Deposits : Rs 10,000
 Accounts can be opened through the following modes:
 Remittances in any convertible currencies from abroad, which will be
converted at ruling exchange rates into Indian rupees
 Transfers from existing NRE/FCNR accounts / deposits or
 Foreign exchange brought into India during visits to India

Non Resident External (NRE) Deposits rates stand revised as under w.e.f. August 1, 2009

Maturity Upto Rs.15 Deposits abv Rs. 15 Lacs Over Rs.1 Crore to less
SLAB lacs upto Rs.1 Crore than Rs.2 Crores
1yr to less than 3.25% 3.25% 3.25%
2yrs
2yrs to less 3.31% 3.31% 3.31%
than 3yrs
3yrs only 3.92% 3.92% 3.92%

2) Non Resident Ordinary Account (NRO)

 Account to be maintained in local currency

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 NRIs that have local income or expenses in India can open NRO Account. The
Account can be Savings, Current or Fixed Deposit Account
 Local incomes like rent, dividend, or interest can be credited to this account
 Interest earned on this account is not exempt from Income Tax under the
provisions of Income Tax Act
 Interest earned is repatriable subject to RBI guidelines
 Joint Account with Resident / Non Resident can be opened
Minimum balance required
1.CurrentAccount:Rs 10,000
2.SavingsAccount:Rs 5,000
3. Term Deposits: Rs 10,000

Maturity SLAB Upto Rs.15 lacs Deposits abv Rs. 15


Lacs Upto Rs.1
Crore
15-45 days 3.25% 3.25 %
46-90 days 4.25% 4.25%
91 days - 6 months 5.50% 5.50%
> 6 months - <1 year 6.50% 6.75%

Non Resident Non Repatriable Deposit Scheme (NRNR)

 No new deposits, whether by way of renewal of existing deposit or otherwise,


shall be accepted. Existing deposits may be continued only up to the date of
maturity
 On maturity of the existing deposit, the maturity proceeds can be credited
directly to the account holder’s Non Resident (External) Account (NRE) or he
can open a fresh NRE Term Deposit Account.
 At the request of the account holder, the maturity proceeds can be credited to
his NRO account also
 The proceeds can be credited directly only to NRE account only on maturity
but not to FCNR (B) Account
 In case of premature withdrawal the proceeds shall be credited only to Non
Resident – Ordinary (NRO) Account.

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G) 24 HOURS BANKING

PHONE SERVICES

Account related services

 Updated balance enquiry (including balance in clearing)


 Balance as on date
 Last five transactions
 Statement of account by fax, e-mail or post
 Request for cheque book
 Hotlisting of ATM or Debit Cards
 Status of cheque issued or deposited
 Funds in clearing
 Bill payment details
 Funds transfer - between your own accounts and to your registered NEFT
payee’s account.
Also services related to demat a/c information, or loan a/c details, or product details
are given
.
SMS SERVICE

Business is on the move and so are the people who conduct it. For one to enjoy
banking convenience while on the move, PSB is here with its SMS Banking facility.
The SMS banking initiatives permit to access the Bank account and carry out various
banking transactions and inquires. No need of visiting the bank again.

Details regarding
 Balance enquiry

 Last three transaction


 Cheque payment status
 Cheque book
 Statement request
 Demat - free balance holding
 Demat - last two transactions
 Bill payment

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PSB BANK

INTERNET BANKING

Once the person logs into Internet Banking on www.PSBbank.com, he can view the
account information and carry out transactions over the Internet. Mentioned below are
the products and services that are available on Internet Banking.
Details regarding accounts demat accounts, customer services like mail messages, or
request or orders including cheque book, stop payment can be done using online
service.
Online payment services including Online Shopping Malls, Online Share Trading
Agency and online bills payment services are also provided.

H) INSURANCE

a. Family care
PSB have always brought the best of banking products and services. Now, there is yet
another unique product ‘FamilyCare’ in association with Bajaj Allianz General
Insurance, one of the leading private general insurance companies.
The FamilyCare Policy is a complete health insurance plan that covers the person, his
spouse and two dependant children up to the age of 25 years. It enables the person to
access the best medical treatment in case of a sudden illness, accidents or an
emergency surgery, without any hassles.
The FamilyCare policy covers the hospitalisation expenses as a result of any illness
and accident. Unlike any other regular policy, wherein a family has to take individual
policies for each member, this unique family floater policy gives the flexibility of
taking one policy that covers the entire family under a single sum insured.

b. Wealthsurance

Wealthsurance is a first of its kind combination of comprehensive investment


choices, protected by powerful insurance options, all presented with a reasonable
charge structure, making it a one stop solution to a customer’s wealth building plans.
Wealthsurance offers investment choices such as Guaranteed Return Fund, Equity
Funds, Debt Funds etc. ensuring that the customer would find all his investment
requirements satisfied with this one powerful product. The powerful insurance
benefits of Wealthsurance ensure that a customer’s wealth plan is not affected by
unforeseen events that may strike them.

The guiding philosophy behind this product is that wealth will grow better with a
protective cover. So, while one’s wealth stays invested, the insurance benefits ensure

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that life’s uncertainties such as death, terminal illness, 17 major diseases, sickness
requiring hospitalisation or serious accidental injuries, do not disturb its growth.
Wealthsurance is thus designed to also give living benefits to ensure one’s well-being
in their lifetime. Customers can opt for a ready plan or build their own plan by
choosing their own sum assured investment plan, affordable premium, policy term
and the type of insurance cover.

I) CAPITAL MARKET

Demat A/c:

Paper securities are passé. Enter the world of dematerialized shares, bonds and other
securities. Convert your securities to dematerialized form with PSB Bank Demat
Account. It's as simple as opening a Savings Account.

Why Demat with PSB Bank?


 Lowest fees

 Statement by emails
 Demat access through Internet, cell and phone
 Portfolio valuation on the account statements
 Online execution of transactions at branches
 Special rates for stock market intermediaries and sub brokers
 Transactions update from back-office four times a day

Demat Accounts for NRIs

If you are a Non-Resident Indian (NRI) who has invested in shares, bonds, debentures
of Indian companies or would like to do so now, open a Demat Account with us either
under NRI Repatriable or NRI Non-Repatriable category. Through our Internet
Banking, you can view your Demat Account balances and print statement of
transactions and holdings from anywhere in the world.

J) ASBA

Applications Supported by Blocked Amount’ (ASBA) is an application for subscribing


to an issue, containing an authorization from the bank customer (who invests in a
particular IPO through ASBA) to block the application money in his bank account.

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PSB BANK

Eligibility

An Investor shall be eligible to apply through ASBA process, if he/she:

a. Is a "Resident Retail Individual Investor",


b. Is bidding at cut-off price, with single option as to the number of shares bid for,
c. Is applying through blocking of funds in a bank account with the SCSB,
d. Has agreed not to revise his/her bid;
e. Is not bidding under any of the reserved categories.

Process of ASBA

An ASBA investor shall submit the filled-in ASBA application form physically to the
SCSB with whom he/she maintains the Bank account. THE SCSB shall then block the
application money in the bank account as specified in the ASBA, on the basis of an
authorization to this effect given by the account holder in the ASBA.
The application money shall remain blocked in the bank account specified in the
ASBA, on the basis of an authorization to this effect given by the account holder in
the ASBA form till finalization of the basis of allotment in the issue or till
withdrawal/failure of the issue or till withdrawal/rejection of the application, as the
case may be. The application data shall thereafter be uploaded by the SCSB in the
electronic bidding system through a web enabled interface provided by the Stock
Exchanges (either NSE/BSE). Once the basis of allotment is finalized, the Registrar to
the Issue shall send an appropriate request to the relevant bank accounts for
transferring the requisite amount to the issuer's account. In case of withdrawal/failure
of t0he issue, the amount shall be unblocked by the SCSB on the receipt of
information from the pre-issue merchant bankers.

K) OTHER FUNCTIONS

Tax payment services

 Pay your taxes through PSB and enjoy peace of mind


 PSB present a simple tax payment service, wherein one could pay the taxes
sitting from the comfort of home or office. pay the taxes any of the following
ways:
 Pay your Direct Taxes Online
 Pay your Central Excise Duty and Service Tax Online

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PSB BANK

 Pay your taxes at our branches


 Direct tax
 Indirect tax
 State tax

Stamp duty payment

Now,get rid of shortage of stamp paper, counterfeit stamp paper, long queues and all
other hassles while paying the stamp duty.
The Government of Maharashtra and the Government of Gujarat has authorized PSB
to collect stamp duty. Except on the below mentioned instruments, one can pay stamp
duty on all financial instruments.
 Bill of Exchange
 Bill of Lading
 Brokers Note
 Debenture
 `Foreign Bills
 Hundi
 Insurance
 Promissory Note
 Proxy
 Revenue Stamp
 Share Transfer Form

Bills payment service

No more queues at phone and power company offices. No more headaches due to late
payment fees. No more worries of having your phone or electricity line cut-off
because one forgot to drop off a cheque. The Electronic Bill Payment facility from
PSB cuts out the hassles one go through each month for paying the bills.
This bill payment service gives the flexibility of viewing and paying the bills online.
The need to do is enter the as billing details on the Intern Billet Banking, and then,
start paying the utility bills, insurance premiums, etc, month on month, absolutely
hassle-free.

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PSB BANK

The Electronic Bill Payment contains:

 Electronic Bill Presentment and Payment: This feature allows you to view and pay
off all your bills online.
 Electronic Bill Payment:This feature allows you to pay off all those bills
appearing physically.

PSB bank Gold Debit cum ATM card

PSB Bank presents revolutionary card product ~ The Gold Debit-cum-ATM Card.
Not only can one withdraw cash and make purchases through the card, but also avail
of a host of services and facilities that make banking simple and enjoyable.

 Features

ATM and Merchant Establishment usage:- The card can be used to transact at
PSB Bank ATMs. Visa cardholder can also withdraw cash at over 36,000
Visa/ Plus ATMs in India & over a million Visa/Plus ATMs worldwide and
MasterCard holder can withdraw cash at over 18,000 MasterCard ATMs in
India & over a million MasterCard ATMs worldwide. The VISA debit card
can also be used to make purchases at over 4.70 lakh merchant establishment
in India and 14 million merchant establishments worldwide. The MasterCard
Debit Card can be used at 2.5 lakh merchant establishments in India and 26
million merchant establishments worldwide.

 International validity
The Gold Debit-cum-ATM Card can also be used abroad to make purchases at
merchant locations and withdraw local currency at 10 lakh Visa/Plus ATMs and
over 10 lakh MasterCard ATMs.

International debit cum ATM card

Imagine being able to access the bank account not just in India, but also anywhere in
the world! Introducing the new way to access the account – the PSB Bank
International Debit-cum-ATM Card. This card enables to access PSB Bank account
from anywhere in the world, anytime of the day or night. It not only l facilitates
withdraw money from any of the ATMs (Automated Teller Machines) and the

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PSB BANK

associated bank’s ATMs, but also empowers to shop, dine and travel without the
worry of carrying cash all the time.

 Benefits
1. Loyalty points with great rewards
2. Enhanced access to over 10 lakh VISA & MasterCard ATMs worldwide and 14
million VISA merchant establishment & 26 million MasterCard merchant
establishment worldwide.
3. Promotional programmes with exciting prizes
4. Zero lost card liability insurance

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PSB BANK

4. FINANCIAL STATEMENTS

BALANCE SHEET OF PREVIOUS 5 YEARS

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:


Total Share Capital 2,058.82 2,058.82 1,603.96 1,603.94 1,332.75
Equity Share Capital 2,058.82 2,058.82 1,603.96 1,603.94 1,332.75
Share Application Money 0 0 0.19 0.45 0.77
Reserves 15,087.09 20,055.15 21,050.11 20,322.08 18,139.73
Net Worth 17,145.91 22,113.97 22,654.26 21,926.47 19,473.25
Deposits 2,68,538.10 2,65,719.83 2,59,835.97 2,35,773.63 2,27,116.47
Borrowings 56,363.98 69,573.94 61,832.98 60,146.29 65,808.87
Total Debt 3,24,902.08 3,35,293.77 3,21,668.95 2,95,919.92 2,92,925.34
Other Liabilities &
Provisions 14,302.18 11,356.57 10,044.51 9,437.40 8,607.14
Total Liabilities 3,56,350.17 3,68,764.31 3,54,367.72 3,27,283.79 3,21,005.73

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with RBI 13,346.92 13,822.91 13,035.77 12,711.11 10,543.95
Balance with Banks 19,337.16 2,757.63 1,489.99 4,106.80 7,380.57
Advances 1,90,825.93 2,15,893.45 2,08,376.87 1,97,686.00 1,96,306.45
Investments 92,934.41 98,999.43 1,20,963.21 1,03,773.50 98,800.93
Gross Block 7,348.78 7,023.13 3,011.30 2,963.06 2,908.56
Revaluation Reserves 5,417.75 5,607.83 1,662.85 1,712.84 1,762.78
Net Block 1,931.03 1,415.30 1,348.45 1,250.22 1,145.78
Capital Work In Progress 0 424.19 49.2 20.14 16.72
Other Assets 37,974.70 35,451.39 9,104.24 7,736.01 6,811.32
Total Assets 3,56,350.15 3,68,764.30 3,54,367.73 3,27,283.78 3,21,005.72

Contingent Liabilities 2,01,931.13 2,12,856.92 2,46,073.24 1,96,540.68 1,87,819.01


Book Value (Rs) 83.28 107.41 141.24 136.7 146.11

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PSB BANK

PROFIT AND LOSS OF PREVIOUS 5 YEARS

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 27,791.37 28,043.10 28,153.99 26,597.51 25,064.30
Other Income 3,967.60 3,410.36 4,007.63 2,978.75 3,219.51
Total Income 31,758.97 31,453.46 32,161.62 29,576.26 28,283.81
Expenditure
Interest expended 22,039.71 21,953.81 22,406.10 20,576.04 19,691.19
Employee Cost 2,203.59 1,674.05 1,926.36 1,491.61 1,538.50
Selling, Admin & Misc
Expenses 12,314.87 11,276.23 6,818.83 6,274.05 5,047.92
Depreciation 358.94 214.18 136.95 113.17 124.12
Operating Expenses 5,140.81 4,129.59 4,027.42 3,318.84 3,134.37
Provisions & Contingencies 9,736.59 9,034.87 4,854.72 4,559.99 3,576.17
Total Expenses 36,917.11 35,118.27 31,288.24 28,454.87 26,401.73

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year -5,158.14 -3,664.80 873.39 1,121.40 1,882.08
Profit brought forward -2,827.28 912.19 896.77 903.86 672.65
Total -7,985.42 -2,752.61 1,770.16 2,025.26 2,554.73
Equity Dividend 0 0 120.3 160.4 466.46
Corporate Dividend Tax 0 0 25.25 27.77 71.75
Per share data (annualised)
Earning Per Share (Rs) -25.05 -17.8 5.45 6.99 14.12
Equity Dividend (%) 0 0 7.5 10 35
Book Value (Rs) 83.28 107.41 141.24 136.7 146.11
Appropriations
Transfer to Statutory
Reserves 506.97 74.67 647.42 540.33 962.65
Transfer to Other Reserves 0 0 65 399.99 150.01
Proposed Dividend/Transfer
to Govt 0 0 145.55 188.17 538.21
Balance c/f to Balance Sheet -8,492.39 -2,827.28 912.19 896.77 903.86
Total -7,985.42 -2,752.61 1,770.16 2,025.26 2,554.73

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PSB BANK

5. JOINT VENTURES

100.0% 100.0% 100.0% 55.0%


48%
Subsidiary Subsidiary subsidiary subsidiary stake

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PSB BANK

PSB Capital Markets & Securities Limited (ICMS)

ICMS, a wholly owned subsidiary of PSB Bank, started as a Broking and Distribution
company in 1993. Currently its businesses include Merchant Banking, Stock Broking,
Distribution of Financial Products, Corporate Advisory Services, Debt Arranging &
Undertaking, Portfolio Management of Pension / PF Funds & Research services.

PSB Intech Limited (IIL)

IIL was incorporated in March 2000, as a wholly owned subsidiary of PSB Bank to
undertake the IT related activities of the Bank. The major business activities of the
company are Information Technology Services, Information Security Practices,
National Contact Center and Outbound Sales Team .

PSB MF Trustee Company Limited (IMTCL)


IMTCL, a wholly owned subsidiary of PSB Bank, was incorporated on January 25,
2010. The company acts as the Trustee of PSB Mutual Fund. As per SEBI Mutual
Fund Regulation 1996, the Trustees ensure that all the activities of the Mutual Fund
are carried out within the regulatory frame work.

PSB Trusteeship Services Ltd (ITSL)


ITSL was incorporated on March 8, 2001 for carrying out trusteeship and other
related business. Consequent to acquisition of additional 14.92% shares of ITSL on
October 01, 2011, PSB Bank’s shareholding in ITSL increased from 39.78% to
54.70% and it has became a subsidiary of PSB Bank. The company’s present
operations include, acting as trustees to securitization transactions, acting as
Bond/Debenture trustee, Security trusteeship assignments, Share pledge Trustee,
Venture Capital Fund, Safe Keeping, Escrow Agency and other trusteeship services.

PSB Federal Life Insurance Company Limited (PSB Federal)


PSB Federal is a Joint Venture Life Insurance Company of PSB Bank Ltd., The
Federal Bank Ltd. and Ageas Insurance International (Ageas). PSB Federal
commenced operations in March 2008. PSB Bank holds 48% equity shares in

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PSB BANK

PSBFederal whereas Federal Bank Ltd. and Ageas hold 26% equity shares each. The
Company’s life insurance business comprises individual life and pension and group
life, including non-participating, health and linked segments.
PSB Federal has Bancassurance partnership with PSB Bank and the Federal Bank and
also distributes its products through its own network. To further diversify its
distribution base, it has set up an Alternate & Direct Distribution channel.

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PSB BANK

Report on the Performance and Financial Position of Subsidiaries and Joint Venture
included in the Consolidated Financial Statement For the financial year 2016-17

(In Rs.000s)

Net Assets, i.e., total assets Share in profit or loss


Name of the entity minus total liabilities
As % of
consolidated
As % of consolidated net assets Amount profit or loss Amount
1 2 3 4 5
Parent : PSB Bank Ltd. Subsidiaries:
Indian: 95.94% 22,563.65 103.50% (5,158.14)
1. PSB Capital Market Services Ltd. 1.39%
2. PSB Intech Ltd. 0.20% 326.79 -0.28% 13.74
3. PSB Asset Management Company 46.07 -0.28% 13.95
Ltd. 0.44% 104.42 -0.75% 7.26
4. PSB MF Trustee Company Ltd. 0.01% 1.20 0.00% 0.13
5. PSB Trusteeship Services Ltd. 0.64% 151.58 -0.84% 41.96
Foreign: NA NA NA NA
Minority Interests in all subsidiaries 0.30% 70.57 -0.38% 19.01
Associates (Investment as per the
equity method)
Indian
1. Biotech Consortium India Ltd. NA NA 1% 0.45
2. National Securities Depository Ltd. NA NA -0.52% 26.16
3. NSDL e-Governance Infrastructure
Ltd. NA NA -0.72% 36.05
4. North Eastern Development Finance
Corporation Ltd. NA NA -0.20% 9.89
Foreign NA NA NA NA
Joint Ventures
(as per proportionate consolidation /
investment as per the equity method)
Indian
1. PSB Federal Life Insurance
Company Ltd. 1.39% 325.87 -0.50% 24.99
Foreign NA NA NA NA
TOTAL 100% 23,519.59 100% (4,983.56)
Elimination -1.09% (25728) 0.65% (32.35)
Net Total 98.91% 23,262.31 100.65% (5,015.91)

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PSB BANK

Report on the Performance and Financial Position of Subsidiaries and Joint Venture
included in the Consolidated Financial Statement

(In ` ‘000s)
Net Assets, i.e., total
Name of the entity Share in profit or loss
assets
minus total liabilities
As % of Amount As % of Amount
consolidated Consolidated
net assets profit or loss
1 2 3 4 5

Parent : PSB Bank Ltd. 95.94% 22,563.65 103.50% -5,158.14


Subsidiaries:
Indian:
PSB Capital Market Services
1 1.39% 326.79 -0.28% 13.74
Ltd.
2 PSB Intech Ltd. 0.20% 46.07 -0.28% 13.95
PSB Asset Management
3 0.44% 104.42 -0.15% 7.26
Company Ltd.
4 PSB MF Trustee Company Ltd. 0.01% 1.2 0.00% 0.13
5 PSB Trusteeship Services Ltd. 0.64% 151.58 -0.84% 41.96
Foreign: NA NA NA NA
Minority Interests in all subsidiaries 0.30% 70.57 -0.38% 19.01
Associates (Investment as per the
equity method)
Indian
1 Biotech Consortium India Ltd. NA NA -0.01% 0.45
National Securities Depository
2 NA NA -0.52% 26.16
Ltd.
NSDL e-Governance
3 NA NA -0.72% 36.05
Infrastructure Ltd.
North Eastern Development
4 NA NA -0.20% 9.89
Finance Corporation Ltd.

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PSB BANK

6. NON PERFORMING ASSETS (NPA)

In this juncture a year-wise break up for the financial performance is required to


identify the rating of NPAs in the span of 10 years. The rating and grades are used to
know the position of Non Performing Assets of the PSB Bank by considering the 11
ratios. The details regarding the selected 11 ratios are presented in Tables below:

Year
Problem Depositors
Gross NPA Net NPA Provision Slippage
Assets Safety
2005-06 20.41 10.41 12.60 30.27 33.02 82.00

2006-07 18.99 11.22 11.86 2.63 44.84 40.76

2007-08 18.92 13.17 11.97 34.91 32.59 23.75

2008-09 13.82 9.18 8.33 20.13 33.56 20.34

2009-10 15.33 10.18 9.12 43.21 22.86 15.95

2010-11 17.60 10.68 10.99 43.50 25.97 19.90

2011-12 25.21 16.12 15.68 32.15 24.32 31.45

2012-13 32.86 15.79 19.99 41.03 25.43 23.68

2013-14 49.15 24.80 30.28 43.94 32.66 45.81

2014-15 59.00 28.76 35.63 0.91 39.21 21.71

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PSB BANK

Ratio
Year Sub Doubtful NPA NPA
Loss Assets
Standard Asset Reduction Accretion

2005-06 2.55 7.07 -- 177.82 94.94

2006-07 0.09 0.47 -- 66.11 114.29

2007-08 8.42 4.61 -- 39.70 153.57

2008-09 11.69 13.68 -- 40.26 110.22

2009-10 13.58 20.27 -- 13.02 534.77

2010-11 6.53 24.35 -- 10.37 677.77

2011-12 22.93 18.75 -- 17.44 322.61

2012-13 7.23 23.66 0.01 13.04 325.73

2013-14 7.00 23.08 0.00 22.05 259.86

2014-15 5.79 19.45 -- 26.61 180.71

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PSB BANK

SUGGESTIONS
PSB Bank has realized that a higher level of Non Performing Assets in their credit
portfolio is dangerous and will affect on their profitability which is already under
strain. Quality of loan assets is the most important factor for the basic viability of the
banking system. Lower level of Non Performing Assets helps the PSB Bank in
consolidating their position and gives credence to efficiency of the management. PSB
Bank can control this problem of reducing the Non Performing Assets taking two
measures namely; Preventive Measures, Corrective Measures

Preventive Measures: It is required to arrest the fresh inflow of Non Performing


Assets. PSB Bank need to ensure that only genuine proposals are accepted and
projects having inherited weakness are to be rejected at the first instances. It needs to
upgrade the credit appraisal skills which are highly inadequate. Economic viability,
technical feasibility, quality of management and financial position of the borrower
should be evaluated properly. Pre – credit and post – credit appraisals are to be done
by PSB Bank more objectively. Close monitoring of borrower accounts, site visits,
factory visits, etc are to be done regularly. Rehabilitation of viable sick units is
essential. Consultancy and technical services must be provided to the borrower units
wherever necessary.

Corrective Measures : Corrective measures are required to recover the money out of
assets, which have already fallen into NPA category. Normally, after sanctioning and
disbursement of loans the bank should have an effective follow-up, monitoring and
supervision over the credit. PSB Bank is necessary to adopt proper credit monitoring
mechanism, with periodical inspection of the units along with regular flow of
information from them pertaining to their financial liquidity, annual accounts, stock
reports, etc., comparative risk analysis and compliance of terms and conditions of

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PSB BANK

sanction. PSB Bank is needed to make sincere efforts to recover the amount from
assets which have already slipped into NPAs category.

Legal Measures :

The following are the important tribunals, committees and agencies for recovering
the Non Performing Assets initiated by Reserve Bank of India.

a. Debt recovery Tribunals (DRT)


b. Corporate Debt Restructuring (CDR)
c. Asset Reconstruction Company India Limited (ARCIL)
d. Credit Information Bureau (CIB)
e. Lok adalats
f. Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002

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PSB BANK

Action of Public Accounts Committee (PAC) of Lok Sabha


Pointing out the faulty lending policies as main reason for huge non-performing assets
(NPAs) for public sector banks (PSBs), the Public Accounts Committee (PAC) of Lok
Sabha, has expressed shock on how PSB Bank fell in debt trap in 20 years after the
government cleared its balance sheet.

In its report on Stressed Assets Stabilisation Fund (SASF) for PSB Bank, which was
presented to the Lok Sabha on 18 July 2017, the PAC said, "... the creation of SASF,
mergers, capital infusions are not able to address the problem of rising NPAs and now
the government would have to think innovatively for a long-term solution."

"The Committee, therefore, desire that after analysing the sectors where NPAs are
rampant, insurance of the loans may be made mandatory for those sectors and since
personal guarantees and securities are also not yielding desired results, professional
bodies may be engaged for underwriting the loans and the collaterals should be
mandatorily insured. The Committee while acknowledging that this will increase the
cost of loans, desire that incentives may be offered, at the time of payment of last
instalment, for borrowers who pay off their loans timely. The Committee exhort that
exemplary punishment should be awarded to the officials who work in tandem with
big corporate and siphon off the money of public exchequer without adequate
collaterals or personal guarantees," the PAC headed by Mallikarjun Kharge, said in its
report.

During 2004, the government created Stressed Assets Stabilisation Fund (SASF) as
Trust or special purpose vehicle to acquire stressed assets of PSB and recover NLO
dues against these assets. At first, 636 non-performing assets (NPAs) with a net loan
outstanding (NLO) of Rs9,004 crore of PSB Bank was transferred to SASF. The
government, then provided Rs9,000 crore to SASF, which in turn were invested in
government securities, redeemable in 20 years and pledged back in securities with
PSB. However, as on FY2015-16, government securities of only Rs4,515 crore were
redeemed as against a balance of Rs4,486 crore. Highest recovery of Rs927.68 crore
was effected in 2006-07. The PAC noted that bulk of the recovery of Rs2,608.29
crore was effected in initial period between FY2006 to FY2008.

The Committee report also reveals that audit of SASF was entrusted to Comptroller
and Auditor General (CAG) in May 2013, almost eight years after it was set up. The
CAG Audit pointed out several deficiencies in managing SASF, including delay in
entrusting Audit, inadmissible exchange of cases between SASF and PSB and
ineffective personal guarantees owing to absence of income and property details, not
ascertaining net worth or income of promoters for settling accounts and short
recoveries.

In 10 cases, the settlement amount or amount recovered was below the net loan
outstanding (NLO) amount aggregating to short recovery of Rs1,590.49 crore. Out of
the 10 cases, in one case of SIV Industries Ltd, valuation of assets was not done and
consequently the share of the Trust was also not available. In the case of SJK Steels
Plant Ltd, pro-rata share of the Trust (SASF) was not available. Since the Policy
provided that value of security including collaterals available (on pro-rata basis) as
also amount of statutory liabilities and workers' dues, was the basis of settlement

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PSB BANK

amount, it was essential to carry out valuation to know the potential for recovery. The
steel sector companies are major defaulters and the Trust has taken substantial hit. For
instance, in respect of Malavika Steep Ltd and Usha Ispat Ltd promoted by Vinay Rai
and Anil Rai of Usha Group, the settlement amount is only Rs41.78 crore (7.03%)
and Rs48.07 crore (14.94%) as against NLO of Rs594.54 crore and Rs321.80 crore,
respectively. The Trust in spite of having personal guarantees from the promoters of
various borrowing companies did not try to ascertain the net worth of the promoters to
realise optimum sum.

The PAC, while looking at 21 settled cases, observed substantial short recovery where
the settlement amount was lower by Rs587.47 crore when compared with NLO of
Rs1,144.64 crore. It stated, “Although personal guarantees of some of the promoters
of the firms were available with the SASF, the SASF did not make efforts to ascertain
the net worth. Income of the promoters before arriving at the settlement amount. Thus
such settlements below NLO, without assessing the financial capability of the
promoters actually benefitted the promoters.”

The PAC said, in 36 out of 39 unresolved cases selected by Audit for examination, the
SASF could recover only Rs150.54 crore as against NLO of Rs1,888.69 crore. “The
short recovery in these cases was to the tune of Rs1,738.14 crore. The (CAG) Audit
analysis of the shortlisted 39 cases reveal that in 11 cases, personal guarantees were
taken from the promoters/ borrowers and only on four cases property details were
available and the SASF also did not collect the income tax returns from the
guarantors…The Committee, while looking at the cases, took note of the fact that
there are substantial number of cases where recovery has been made below NLO. The
Committee express strong displeasure and direct the Ministry (of Finance) to look in
to all such cases where settlement below NLOs have been approved and fix
responsibility of the officers responsible for the same,” the report says.

RBI placed PSB Bank under prompt corrective action (PCA)

In December 2016, the Reserve Bank of India (RBI) placed PSB Bank under prompt
corrective action (PCA) for breaching two thresholds, high net NPA and negative
return on assets (RoA) as on 31 December 2016. As on December 2016, net NPA of
PSB Bank at Rs20,649 crore constituted 9.61% of total net advances of the Bank.
"Further," the PAC said, "increasing gross NPA and net NPA of PSB Bank at
Rs44,752 crore (21.25%) and Rs25,206 crore (13.21%), respectively as on March
2017 compared with gross NPA of Rs24875 crore (10.98%) and net NPA of Rs14,643
crore (6.78%) as on March 2016, are indeed alarming".

"The Committee is shocked to note that in less than 20 years after the government
cleared the balance sheet of PSB, it has again fallen into debt trap of NPA. The
Committee is of the considered opinion that the huge NPA of the PSBs point towards
their faulty lending policies," the PAC added.

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PSB BANK

RESTRUCTURING AND REHABILATION POLICY OF PSB

Preamble

The MSME restructuring/rehabilitation policy of the Bank aims at a timely and


transparent mechanism for restructuring the debts of potentially viable Micro, Small
and Medium (MSME) entities facing problems and to maintain the economic value of
assets. In particular, the framework would aim at preserving viable MSMEs that are
affected by certain internal and external factors and minimize the losses to the
creditors and other stakeholders through an orderly and coordinated
restructuring/rehabilitation programme.

Restructuring process would involve modification of terms of the advance/securities,


which would generally include among others, alteration of repayment
period/repayable amount/rate of interest (due to reasons other than competitive
reasons) etc.

Rehabilitation would involve process to ensure that the Sick MSME Units become
Viable. A unit would be considered as Sick, if

Any of the borrowal account of the enterprise remains NPA for three months or more
Or
There is erosion in the net worth due to accumulated losses to the extent of 50 per
cent of its net worth during the previous accounting year

Scope

The policy would be applicable to the following entities that are either viable or
potentially viable:

a. All non-corporate Micro, Small and Medium Enterprises (MSMEs),


irrespective of the level of dues to bank.

b. All corporate MSMEs, which are enjoying banking facilities from a single
bank, irrespective of the level of dues to the bank.

c. All corporate MSMEs which have funded and non-funded outstanding above
Rs. 10 crores under multiple/ consortium banking arrangement would be
restructured as per CDR Mechanism.In respect of BIFR cases, approval from
BIFR will be obtained before implementing the restructuring/rehabilitation
package.

Accounts not eligible for Restructuring/Rehabilitation

a. Accounts involving wilful default/ mismanagement, fraud and malfeasance,


unauthorized diversion of funds, dispute among partners/promoters etc.

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b. Accounts classified by the Bank as “Loss Assets”

General Principles for Restructuring of Advance

Restructuring would be applicable for the accounts classified under 'standard', 'sub-
standard' and 'doubtful' categories.

The Bank would generally not reschedule / restructure / renegotiate the borrowal
accounts with retrospective effect. Funding of unrecovered interest will not be
considered as retrospective restructuring.
While a restructuring proposal is under consideration, the asset classification norms as
per the extant RBI guidelines would continue to apply
.
Restructuring would be carried out with the formal consent or on the basis of request
submitted by the Borrower.

a. Restructuring of advances can be permitted at the following stages:

b. Before commencement of commercial production/operation;

c. After commencement of commercial production/operation but before the asset


has been classified as ‘sub-standard’;

d. After commencement of commercial production/operation and the asset has


been classified as ‘sub-standard’ or ‘doubtful’

Restructuring would be taken up only when the financial viability of the unit is
established and there is a reasonable certainty of repayment from the borrower, as per
the terms of the restructuring package.

General Principles for Rehabilitation of sick MSEs

a. The rehabilitation process would start when early sign of sickness are
detected. This stage will be termed as Handholding Stage.

b. An account would be treated to have reached the ‘handholding stage’; if any


of the following events are triggered:
c. The company incurs losses for two years or cash loss for one year, beyond the
accepted timeframe;

d. The Bank would undertake timely remedial action which includes an enquiry
into the operations of the unit and proper scrutiny of accounts, providing
guidance/counseling services, timely financial assistance as per
e. requiring assistance from other agencies. The remedial action/measures will be
undertaken within a maximum period of two months of identification of such
units.

f. The decision on viability of the unit will be taken at the earliest but normally
not later than 3 months of becoming sick/receipt of application for
restructuring.

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g. A unit will be declared unviable only after the viability of the unit is
ascertained by a suitable viability study. However, for micro (manufacturing)
enterprises, having investment in plant and machinery up to Rs.5 lakh and
micro (service) enterprises having investment in equipment up to Rs.2 lakh,
the Branch Manager will take a decision on viability and record the same,
along with the justification.

h. A decision on the unit’s representation as above will normally be taken within


two months.

Time frame for implementation of Restructuring/Rehabilitation Proposal

The Restructuring package will be implemented within 90 days from the date of
receipt of request for restructuring from the borrower, while the rehabilitation package
will be fully implemented within six months from the date of unit being declared as
viable/potentially viable. During the six month period of identifying and
implementing rehabilitation package, the Bank would permit "Holding Operation"
which will allow the sick unit to draw funds from the cash credit account atleast to the
extent of deposit of sale proceeds.

Asset Classification after Restructuring

Income recognition, asset classification and provisioning in respect of restructured


accounts shall be in line with applicable RBI guidelines issued from time to time.

Reliefs and Concessions

The reliefs and concessions that may be extended under the restructuring /
rehabilitation package will depend upon the viability of the individual account and
might vary from case to case.

Restructuring Fee:
As per the Bank’s norms.

Approach to Rehabilitation / Restructuring


The Bank would consider the restructuring/rehabilitation package depending on the
viability of the unit and would, interalia, have the following rights:

(i) Right to seek induction of strategic investors / co-promoters

(ii) Right to appoint special concurrent auditor


(iii) Change of statutory auditors
(iv) Right to appoint Lenders’ Engineer / Monitoring Agency

(v) Right to accelerate repayment / revoke package


(vi) Right of recompense

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(vii) Right to appoint nominee directors

7. DEVELOPMENT OF PSB BANK

PSB Bank provided financial assistance Under CSR to Directorate of Youth Affairs
and Sports, Govt. of Tripura for purchase of Gymnastics equipment. (L-R) Mr. K. P.
Nair, DMD, PSB Bank (2nd from Left), Olympian Gymnast Ms. DipaKarmakar, Shri
Bishweshwar Nandi, Dronacharya Awardee, Shri Sahid Choudhuri, Hon’ble Minister,
Youth Affairs & Sports, Govt. of Tripura, and Shri PabitraKar, Hon’ble Dy. Speaker,
Tripura Legislative Assembly.

To meet emerging challenges and to keep up with reforms in financial sector, PSB has
taken steps to reshape its role from a development finance institution to a commercial
institution. With theIndustrial Development Bank (Transfer of Undertaking and
Repeal) Act, 2003, PSB attained the status of a limited company viz. "Industrial
Development Bank of India Limited" (PSBL). Subsequently, the Reserve Bank of
India (RBI) issued the requisite notification on 30 September 2004 incorporating PSB
as a 'scheduled bank' under the RBI Act, 1934.

Consequently, PSB, formally entered the portals of banking business as PSBL from 1
October 2004. The commercial banking arm, PSB BANK, was merged into PSB.
In March 2008, PSB Bank entered into a joint venture with Federal Bank and Fortis
Insurance International to form PSB Fortis Life Insurance, of which PSB Bank owns
48 percent. The company ended the year with over 300 Cr in premiums as on 31
March 2009.The name of PSB Fortis Life Insurance is now changed toPSB Federal
Life Insurance Co Ltd.

Government of India now owns 65% stake in PSB Bank. Hence PSB Bank is also
referred as 'The New Age Government owned Bank'
PSB Bank has recently inaugurated its branch no. 897 at Guna,
thegateway of Malwa and Chambal, Madhya Pradesh. It has now a network of 897
branches, 615 centres and 1492 ATMs as on August 30, 2011.
PSB Bank has bought 10% stake in upcoming commodity bourse Universal Commo-
dity Exchange (UCX) for Rs 10 crore, the bank's top official said. The deal was
completed recently. RM Malla, chairman and MD of PSB Bank, confirmed that the
bank had picked up 10% in what will become the country's sixth commodity futures
exchange.

"The idea behind acquiring equity is to push agriculture loans through this venture,"
said Malla. "The other advantage is PSB will be the only bank among the promoters
and therefore all transactions of the exchange will be routed through PSB."
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Developmental Activities of PSB:

(1) Promotional Activities:

In fulfillment of its developmental role, the bank continues to perform a wide range of
promotional activities relating to developmental programmes for new entrepreneurs,
consultancy services for small and medium enterprises and programmes designed for
accredited voluntary agencies for the economic upliftment of the underprivileged.

These include entrepreneurship development, self-employment and wage employment


in the industrial sector for the weaker sections of society through voluntary agencies,
support to Science and Technology Entrepreneurs’ Parks, Energy Conservation,
Common Quality Testing Centers for small industries.

(2) Technical Consultancy Organisations:

With a view to making available at a reasonable cost, consultancy and advisory


services to entrepreneurs, particularly to new and small entrepreneurs, PSB, in
collaboration with other All-India Financial Institutions, has set up a network of
Technical Consultancy Organisations (TCOs) covering the entire country. TCOs offer
diversified services to small and medium enterprises in the selection, formulation and
appraisal of projects, their implementation and review.

(3) Entrepreneurship Development Institute:

Realising that entrepreneurship development is the key to industrial development;


PSB played a prime role in setting up of the Entrepreneurship Development Institute
of India for fostering entrepreneurship in the country. It has also established similar
institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. PSB also extends
financial support to various organisations in conducting studies or surveys of
relevance to industrial development.

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8. SWOT ANALYSIS OF PSB BANK

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STRENGTHS

 The banks major strength is it involves latest cutting edge technologies to


support its core banking operations
 The bank has network of 943 branches and 1529 ATMs
 The total turnover of the bank is 3,37,584 crores in the last FY 2016-17,
and earned a net profit of Rs.1650 cr.
 The bank has grown at a rate of 60% compared to previous year
 PSB has the first mover advantage in opening ‘G-sec portal’. This is a
platform for the retail investors to invest in government securities
 PSB is one of the largest commercial banks in India which focuses on
industrial infrastructure and development
 PSB’s product portfolio includes 14 broad classifications, and there are
some sub categories in each. The bank has customized solution faculties for
its industrial clients
 The location of its head quarters in Mumbai fosters the growth of the bank
 PSB’s subsidiaries are into capital market services, IT services, asset
management and life insurance

WEAKNESS

 PSB has less penetration into the rural market


 PSB has very less number of branches and ATM network compared to other
major players
 Rise in Retail & corporate NPA’s (Non-performing assets)

OPPORTUNITIES

 Scope for bagging government schemes are high as PSB belongs to public
sector
 Global opportunities for PSB are the rise as the management is keenly
focusing on global expansion in next few years
 They have a good number of financial expertise to face the emerging industrial
and economic growth in India

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 It is the only bank in public sector which has enabled social media plug-in in
its website. This has increased the brand awareness and better reach to its
customers
 The bank has good opportunities in semi-urban and Tire II cities areas as the
industrial growth is taking very rapidly

THREATS

PSB faces tough competition in terms of new market development due to


competition from both government and private banks

 FDI in Indian banking has been opened up to 74% by the RBI


 In private banking HDFC, ICICI and in public sector SBI, Punjab National
Bank, Andhra bank and Allahabad bank are the major competitors
 The bank has to focus on improving the customer satisfaction in order to
sustain the loyal customers
 Recent scams and fraudulent activities of bank have gained mistrust from its
customers and investors
 the individual banking services is where the main revenue lies.
 The customer help desk is not performing efficiently and there are many
unresolved issues of customers
 The bank has lots of consumer complaints with respect to servicing charges
 The bank lacks in promotional activities

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9. STUDY OF PSB BANK.

PSB Bank
C Wing, Mittal Tower, Barrister Rajni Patel Marg, Churchgate, Nariman Point,
Mumbai, Maharashtra 400021

Date: 19/12/2017
Kalpesh Rathod.
Relationship manager.

I, Chintan Thakkar visited PSB Bank on 19th Dec, 2017 and the following information
was collected.

“PSB Bank is a full service bank , Where our customer can access there
accounts across multiple touchpoints . over 800 atm’s , 500+ branches in over 300
centers , via telephone , vai internet , mobile phone (sms and wap). if you take the
telephone and internet alone , it means there are over 30 millions places across india
from where a customer can access his account,” said Mr. Kalpesh Rathod.

PSB Bank is truly India’s first financial services supermarket. Because it is India’s
first bank where customers can get the following savings products under one roof,
like:

1. Saving Account
2. Demat Account
3. Mutual Funds
4. Insurance
5. Bond
6. Current account

Further, customers can also get the following loan products under the same roof.
1. Home loan
2. Mortgage Loan
3. Auto Loans
4. Education Loans
5. Personal Loan
6. Loans for Renovation

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7. Loan against
8. Loans against bonds

Several polices provided by PSB Bank


Model deposit policy
Comensation policy
Cheque collection policy
Collection of dues policy

VARIOUS CARD PROVIDED BY PSB BANK.


Online payment through Debit cards
Platinum Debit Card
Women Debit Card
Gift Card
World Currency Card
Cash Card
Gold Debit Card

FACILITIES BY ATMS
Setting up of offsite ATMs
Cash replenishment process for offsite ATMs
ATM Escalation Matrix
PSB Bank Newsletter May 2005
MF Basics
I-Principal Rpt. Format
Retail Products
MF Basics

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10. RECOGNITIONS

 Recognising its high brand visibility, brand trust and strength, Millward
Brown’s Report Brand Z rated PSB Bank amongst the ‘Top 50 Most Valuable
Indian Brands’.

 PSB Bank won the prestigious Jamnalal Bajaj Uchit Vyavahar Puraskar, 2016
in the category of ‘Service Enterprises-Large’ conferred by Council for Fair
Business Practices.

 PSB Bank received the first prize for ‘Excellence in lending to Micro
Enterprises’ from Hon’ble Prime Minister Shri Narendra Modi. PSB Bank
also won the ASSOCHAM SMEs Excellence Award 2016 for its performance
in Micro Lending.

 The Bank received the ‘NetApp Innovation Award 2017’ under Trend Setter
Category for ‘Facebook Banking’ and Silver Award at the 6th Asia Pacific
Customer Engagement Forum in the category ‘Most Admired Customer
Engaged Mobile App’ for its Abhay Card Control App.

 PSB Bank won the Association of Development Financing Institutions in Asia


and the Pacific (ADFIAP) Award in ‘Environmental Development’ for its
project ‘Lighting a Billion Lives’ where clean energy solutions were provided
to 100 villages across four States.

 PSB Bank’s CSR project, WaSH (Water, Sanitation and Hygiene) won the
Asia Pacific Customer Engagement Forum (ACEF) Gold Award 2016 and
Certificate of Excellence at the Annual FICCI CSR Awards. PSB Bank also
won ACEF Silver Award for adoption of a flood affected village in Ladakh.

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 The Bank's communication initiatives won awards in various categories at the


Annual Awards of the Association of Business Communicators of India
(ABCI) and the Public Relations Council of India (PRCI).

 Recognition of our CSR Initiatives

PSB Bank’s initiatives in the CSR area continue to demonstrate its consistent
commitment towards making a visible and lasting change in various realms of society.
The following are the notable Awards won by the Bank as an apposite recognition of
the its enhanced stature as a responsible corporate citizen.

 Financial Year (2015-16)

- Lions CSR Precious Award 2016 for exemplary work in the field of social
service

- Fifth Annual Greentech CSR Award 2015 in the Platinum category

 Financial Year (2014-15)

- SKOCH Order of Merit for CSR in the SKOCH Financial Inclusion &
Deepening Award 2014.

- ‘Best Corporate Social Responsibility Practices’ in the Banking Category at


the Lokmat Banking, Financial Services & Insurance (BFSI) Awards, 2014

- ‘Best Corporate Social Responsibility Practices’ in the Banking Category at


the Responsible Business Awards, 2014.

 Financial Year (2013-14)

- Golden Peacock Award for Corporate Social Responsibility for 2013 under the
Banking (PSU) category

- Third Annual Greentech CSR Award 2013 in the Platinum category


- ‘Best Corporate Social Responsibility Practices’ in the Banking Category at
the ABP Banking, Financial Services & Insurance (BFSI) Awards, 2014

 Financial Year (2012-13)

- Second Annual Greentech CSR Award 2013 in the Silver category

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11. RECOMMENDATIONS

 Management of PSB is centralised i.e. it follows the long procedure for


approvals of loans,due to which this should be decentralised.

 The branches are located only in metropolitan cities , so they should increase
the number of branches i.e. 575 branches all over the country are not enough.

 Bank should enchance its business by providing funds to financial institutions


those engaged in venture capital, hire purchase, leasing, etc.

 Number of working hours of PSB bank is 7 hours, it should be increased to 12


hours.

 Also bank should come up with new schemes specially for the development of
Small and Medium enterprises.

 Centres providing SMEs products are very less i.e. SMEs products are
available just at 27 centres. And hence for the development of SMEs number
should be raised.

 There should be facilities such as online acceptance of the form for opening a
bank account.

 Not only that, bank should also come up with some different instant banking
options like TV banking

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12. CONCLUSION

India is well positioned to become the fourth largest economy in the world by
2025.GDP growth rates of 7-8% in a year will be sustainable if key enabling factors
have been put in place. One of the robust economic growths is a banking sector that is
adequately sufficient to meets the needs of growing economy.

As the market conditions remained under pressure and volatile, growth of the
economy is expected to remain above 5.5% during FY 2009-10. Such growth
momentum and the revival plan would bestow sufficient platform to commercial
banks in order to enlarge their business level. PSB Bank is currently well poised in
terms of its infrastructure and policy directions, to play a larger role in the growth
story of the economy and optimise its performance indicators.

PSB Bank provides complete solution catering to financial requirements of corporate.


It is one among the leaders in project finance. The Bank also offers a wide array of
corporate banking products. Bank has achieved impressive growth of more than 80%
in Trade Finance business covering Letter of Credit and Bank Guarantee products.
The Bank has also improved export credit disbursement by 17%. It continues to
remain a prominent player in infrastructure financing.

PSB Bank is maintaining a proper database of their NPA portfolio on well – designed
formats to provide meaningful inferences which would help them in evolving
effecting strategies as well as account specific action plans for reduction in Non
Performing Assets. The Non Performing Assets have always created a big problem
for the banks and perhaps the most threatening to question the fundamental efficiency
of the bank. It is just not only problem for the banks but for the economy too. The
money locked up in NPAs has a direct impact on profitability of the bank. It is also a
well known fact that the basis for the accumulation of huge NPAs is not because of
negative trade cycles, but is an outcome of faculty credit delivery system and the
adoption of impractical operational methodologies. In order to tackle this challenge
in the environment, the PSB bank needs to adopt a very objective approach to
allocate its funds in the most efficient way and thereby reduce the burden of NPAs in
future.

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13. BIBLIOGRAPHY.

 www.PSBbank.com

 PSB Bank -Nariman Point Branch.

 http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scrip
code=500116

 Money Control Website : http://www.moneycontrol.com/company-


article/PSBbank/news/IDB05

 Annual Report 2016-2017 of PSB Bank

 Slide Share Website: https://www.slideshare.net/drishtirai/introduction-to-


PSB-bank

 "PSB Bank". Business.mapsofindia.com.

 "PSB bags best bank award"Indiavision news

 Our Banking Bureau / Mumbai - Business-standard.com.

 Indian Banks' Association (IBA)

 Magazine - The Indian Banker

 Banking Events Update: http://bankingindiaupdate.com/index.php/magazine/

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Key Financial Ratios

Mar
Mar '17 Mar '16 Mar '15 Mar '14
'18

Investment Valuation Ratios


Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- 1.65 0.60 2.20
Operating Profit Per Share (Rs) 11.11 17.64 20.91 9.81 14.89
Net Operating Profit Per Share
140.71 204.11 218.38 214.49 289.62
(Rs)
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Interest Spread 6.52 7.22 6.70 5.75 6.63
Adjusted Cash Margin(%) -7.96 2.78 4.13 1.85 4.01
Net Profit Margin -9.35 2.46 3.84 1.41 3.77
Return on Long Term Fund(%) 82.79 95.43 118.37 126.11 131.67
Return on Net Worth(%) -12.03 3.27 5.62 2.16 6.24
Adjusted Return on Net
-12.03 3.27 5.62 2.16 6.24
Worth(%)
Return on Assets Excluding
109.45 153.40 149.10 139.76 174.78
Revaluations
Return on Assets Including
109.45 153.40 149.10 139.76 174.78
Revaluations
Management Efficiency Ratios
Interest Income / Total Funds 7.56 8.20 8.73 8.93 9.11
Net Interest Income / Total
2.12 2.17 2.17 1.75 1.85
Funds
Non Interest Income / Total
0.55 0.58 0.48 0.45 0.49
Funds
Interest Expended / Total Funds 5.43 6.04 6.56 7.19 7.26
Operating Expense / Total
1.53 1.46 1.34 1.34 1.38
Funds
Profit Before Provisions / Total
1.09 1.25 1.27 0.81 0.92
Funds
Net Profit / Total Funds -0.71 0.20 0.34 0.13 0.34
Loans Turnover 0.13 0.13 0.14 0.14 0.15
Total Income / Capital
8.11 8.79 9.21 9.38 9.60
Employed(%)
Interest Expended / Capital
5.43 6.04 6.56 7.19 7.26
Employed(%)

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Total Assets Turnover Ratios 0.08 0.08 0.09 0.09 0.09


Asset Turnover Ratio 0.08 0.08 0.09 0.09 0.09
Profit And Loss Account Ratios
Interest Expended / Interest
71.88 73.58 75.12 80.45 79.67
Earned
Other Income / Total Income 6.81 6.61 5.19 4.75 5.09
Operating Expense / Total
18.85 16.61 14.51 14.27 14.41
Income
Selling Distribution Cost
0.01 0.01 0.01 -- --
Composition
Balance Sheet Ratios
Capital Adequacy Ratio 11.25 11.05 10.91 11.24 11.04
Advances / Loans Funds(%) 68.66 63.90 69.53 72.25 71.45
Debt Coverage Ratios
Credit Deposit Ratio 66.70 69.15 71.80 70.64 69.94
Investment Deposit Ratio 32.54 31.45 30.57 32.11 32.72
Cash Deposit Ratio 5.67 4.63 4.26 5.01 5.20
Total Debt to Owners Fund 17.05 14.41 15.76 16.04 18.09
Financial Charges Coverage
1.21 1.21 1.20 1.12 1.13
Ratio
Financial Charges Coverage
0.88 1.04 1.06 1.02 1.05
Ratio Post Tax
Leverage Ratios
Current Ratio 0.06 0.05 0.05 0.02 0.02
Quick Ratio 36.37 33.65 28.83 29.05 25.88
Cash Flow Indicator Ratios
Dividend Payout Ratio Net
-- -- 19.66 19.79 20.14
Profit
Dividend Payout Ratio Cash
-- -- 17.30 14.35 17.96
Profit
Earning Retention Ratio 100.00 100.00 80.34 80.21 79.86
Cash Earning Retention Ratio -- 100.00 82.70 85.65 82.04
AdjustedCash Flow Times -- 351.23 239.06 518.05 251.28

Mar
Mar '17 Mar '16 Mar '15 Mar '14
'18

Earnings Per Share -13.17 5.02 8.39 3.03 10.92


Book Value 109.45 153.40 149.10 139.76 174.78

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