%

$
1
.
,
1
*

for all

Aapka Bhala, Sabki Bhalai.

ANNUAL REPORT 2016-17

 Contents
About Bandhan Bank 02
Well-being for all 04
Pan-India reach 06
Round-up of 2016-17 07
Steady progress 08
Chairman’s message 12
Managing Director’s insight 14
New-age banking 18
Last-mile banking 20
2ƪHULQJVIRUDOO 24
Drivers of our business 28
Risk governance architecture 34
Community aspirations 38
%RDUGSURƬOH 42
Leadership team 44
Awards and recognition 45
First Anniversary of Bandhan Bank 46
Statutory reports 48
Financial statements 82

)RUZDUG/RRNLQJ6WDWHPHQW

,QWKLV$QQXDO5HSRUWZHKDYHGLVFORVHGIRUZDUG
ORRNLQJLQIRUPDWLRQWRHQDEOHVWDNHKROGHUVWR
FRPSUHKHQGRXUSURVSHFWVDQGWDNHSUXGHQW
GHFLVLRQV7KLVUHSRUWDQGRWKHUVWDWHPHQWVs
ZULWWHQDQGRUDOsWKDWZHSHULRGLFDOO\PDNH
FRQWDLQIRUZDUGORRNLQJVWDWHPHQWVWKDWVHWRXW
DQWLFLSDWHGUHVXOWVEDVHGRQWKHPDQDJHPHQWoV
SODQVDQGDVVXPSWLRQV:HKDYHWULHGZKHUHYHU
SRVVLEOHWRLGHQWLI\VXFKVWDWHPHQWVE\XVLQJ
ZRUGVVXFKDVnDQWLFLSDWHonHVWLPDWHonH[SHFWVo
nSURMHFWVonLQWHQGVonSODQVonEHOLHYHVoDQGZRUGV
RIVLPLODUVXEVWDQFHLQFRQQHFWLRQZLWKDQ\
GLVFXVVLRQRIIXWXUHSHUIRUPDQFH:HFDQQRW
JXDUDQWHHWKDWWKHVHIRUZDUGORRNLQJ
VWDWHPHQWVZLOOEHUHDOLVHGDOWKRXJKZHEHOLHYH
ZHKDYHEHHQSUXGHQWLQRXUDVVXPSWLRQV7KH
DFKLHYHPHQWVRIUHVXOWVDUHVXEMHFWWRULVNV
XQFHUWDLQWLHVDQGHYHQLQDFFXUDWHDVVXPSWLRQV
6KRXOGNQRZQRUXQNQRZQULVNVRUXQFHUWDLQWLHV
PDWHULDOLVHRUVKRXOGXQGHUO\LQJDVVXPSWLRQV
SURYHLQDFFXUDWHDFWXDOUHVXOWVFRXOGYDU\
PDWHULDOO\IURPWKRVHDQWLFLSDWHGHVWLPDWHGRU
SURMHFWHG5HDGHUVVKRXOGEHDUWKLVLQPLQG:H
XQGHUWDNHQRREOLJDWLRQWRSXEOLFO\XSGDWHDQ\
IRUZDUGORRNLQJVWDWHPHQWZKHWKHUDVDUHVXOW
RIQHZLQIRUPDWLRQIXWXUHHYHQWVRURWKHUZLVH
 amBition for all

vAlues for all

chaNge for all

linK for all

aspIration for all

visioNfor all

proGress for all

 Aapka Bhala, Sabki Bhalai.

Banking is a means towards

ƬQDQFLDOHPSRZHUPHQWRIFLWL]HQV
especially those at the bottom of
the pyramid.

About Bandhan Bank

Bandhan Bank is one of the two recent entrants in India’s

universal banking space. Headquartered in Kolkata, the
Bank has two divisions — general banking and micro
EDQNLQJRƪHULQJDERXTXHWRIUHWDLOƬQDQFLDOVROXWLRQV
including a variety of savings and loan products. The Bank
has established a robust distribution channel across metro,
urban, semi-urban and rural regions.

In an increasingly digitised ecosystem, it is our imperative

to stay relevant to the changing requirements of new-age
customers; and to handhold customers so that they can be
on-boarded seamlessly on to digital service channels. To
IXOƬOVXFKUHTXLUHPHQWVWKH%DQNKDVEXLOWDPXOWLFKDQQHO
servicing strategy.

%\RƪHULQJRXUFXVWRPHUVWUDQVDFWLRQVDWRXU$70V
internet banking, phone banking and mBandhan (mobile
banking) in addition to our branch network, the Bank has
ensured that the service is available round-the-clock. For
every single customer.

We see
banking as a
service, more
than a
ƬQDQFLDO
transaction.

02
Beyond that, we see
banking as a
IXQGDPHQWDOULJKWRI
Our innovative
every Indian citizen.
products and services
To be a part of the
cater to the
mainstream economy
UHTXLUHPHQWVRIDOO
DQGIXOƬOWKHLU
and we focus on Trust is our cherished
aspirations.
ZLGHQLQJWKHVPLOHRI asset and we
ODVWPLOHFXVWRPHUV FRQWLQXHWREXLOGRQ
The future of New it by crafting
India rests on their convenient and
VKRXOGHUV DƪRUGDEOHƬQDQFLDO
VROXWLRQVWKDW
produce encouraging
RXWFRPHVIRUDOO
VWDNHKROGHUV

03
 $118$/5(3257

We made a mod dest

EHJLLQQLQJLLQ DV
DQR
RWIRUSUR RƬW
PLFUURƬQD DQFHH
enteerpprisse withh thhe
a of makin
idea ng a
VLJQLƬ
ƬFDQW
conttrib
buttioon toowards
poveerty alle eviattion by
emppowerin ng wo omen.
We transform med d
oursselvvess in
nto a non-
EDQNNLQQJƬƬQDQ QFHH
Bandhan Bank received the
‘in-principle’ approval from the FRPPSDQ\LLQ 

5HVHUYH%DQNRI,QGLDLQ$SULO
DQGWKHEDQNLQJUHJXODWRUoVƬQDOQRG
FDPHRQ-XQH2XUSXEOLF
shareholders include, among others,
International Finance Corporation
(IFC), Small Industries Development
Bank of India (SIDBI), and an arm of
We are a Bank for all, with focus on
GIC, the sovereign wealth fund of
FDWHULQJWRDOOƬQDQFLDOUHTXLUHPHQWV
Singapore.
of people who remain outside the
periphery of the formal banking
We have a consistent desire to serve
HFRV\VWHP2XUREMHFWLYHLVWRKHOS
better with a wider reach. We seek to
promote better education, healthcare
RƪHURXUZRUOGFODVVEDQNLQJ
and self-employment opportunities.
products and services to urban,
semi-urban and rural customers alike.
,QOLQHZLWKRXUSKLORVRSK\RIn$DSND
While we have a pan-India presence,
Bhala, Sabki Bhalai’ and keeping
our special focus remains on eastern
ƬQDQFLDOLQFOXVLRQDWWKHKHDUWRILW
and north-eastern parts
ZHDUHFRPPLWWHGWRRƪHUSURGXFWV
of India.
and services that bridge aspirations
and achievements.

04
 &&RVWHƪHFWLYHDQGVLPSOH

our vision R - Respect for all

To be a world class bank for
FRQYHQLHQWDQGDƪRUGDEOH (([HPSODU\
ƬQDQFLDOVROXWLRQVWRDOOLQDQ
governance
inclusive and sustainable manner.

our mission
To provide our customers accessible, simple, cost-
HƪHFWLYHDQGLQQRYDWLYHƬQDQFLDOVROXWLRQVLQD
C
courteous and responsible manner. To create value
for all stakeholders through a committed team,

R
robust policies and superior systems and technology.

our values
2XUYDOXHVDUHDQFKRUHGDURXQG
our business ethics, consumer
focus and corporate responsibility
towards society at large. E
our growth story

A
STATES AND UNION BRANCHES DOORSTEP SERVICE
TERRITORY PRESENCE &(175(6Ǔ'6&sǔ

 29  656  2,022

 33  840  2,443
ATMs CUSTOMERS EMPLOYEES T
 228  84ODNK  20,548
282 105ODNK 24,220
E
  

ADVANCES DEPOSITS

 ` 15,593cr  ` 12,089cr

$$FFRXQWDELOLW\
 `23,543cr  ` 23,229cr professionalism
and discipline

T - Transparency
SHAREHOLDERS’ FUND
and integrity
 ` 3,590cr
((ƪHFWLYHWHDPZRUN
 ` 4,705cr and commitment

05
 3DQ,QGLDUHDFK 8WWDU
3UDGHVK *XMDUDW
5% 3%
0DKDUDVKWUD
6%
$VVDP
8% West
Bengal
State-wise
Bihar bank branches 41%
Jammu & Kashmir 10%

Himachal
3UDGHVK 2WKHUV
3XQMDE
27%
8WWDUDNKDQG

Haryana
1DWLRQDO&DSLWDO7HUULWRU\
1&7RI'HOKL Sikkim $UXQDFKDO
3UDGHVK

5DMDVWKDQ 8WWDU3UDGHVK
$VVDP 1DJDland
Bihar
0HJKDOD\D
0DQLSXU
Tripura
Jharkhand
*XMDUDW West
0DGK\D3UDGHVK
Bengal
0L]RUDP
Chhattishgarh

2GLVKD
Dadra
1DJDU
0DKDUDVKWUD
Haveli

Telangana 58%
Rural and
semi-urban

Goa
Karnataka $QGKUD
3UDGHVK

Tamil 27%
1DGX 8UEDQ
Kerala 3XGXFKHUU\

15%
2WKHUVLQFOXGH0DGK\D3UDGHVK-KDUNKDQG7ULSXUD
2GLVKD&KKDWWLVJDUK5DMDVWKDQ1DWLRQDO&DSLWDO7HUULWRU\
0HWUR 1&7RI'HOKL.DUQDWDND3XQMDE+DU\DQD7DPLO1DGX
8WWDUDNKDQG.HUDOD7HODQJDQD$QGKUD3UDGHVK*RD
+LPDFKDO3UDGHVK0L]RUDP1DJDODQG$UXQDFKDO3UDGHVK
&KDQGLJDUK'DGUD 1DJDU+DYHOL-DPPXDQG.DVKPLU
0DQLSXU0HJKDOD\D3XGXFKHUU\DQG6LNNLP

06
 Corpo
ora
ate overvview
w

47
5RXQGXSRI
'XULQJ
 %%DQGK KDQ%
%DQNFRQWWLQXHGWR
KHQLWVVFFRUUHE
VWUHQJWK EDQ
QNR
RƪHULQQJV::HDUH
committted too kee ep buildin
ng our fran nchise
DQGRƪHURXUH HVWH
HHPHGFX XVWRPPHUVD DZLGH
range off soluttio
onss to meett their varied
customeer reequiiremmentts.
• 6PDOODQG0HGLXP(QWHUSULVHV
ASSETS PRODUCTS
• 2QWKHUHWDLODVVHWVIURQWWKH
• Strengthened customer advances
DEPOSITS PRODUCTS portfolio by the addition of two
new businesses — Small
• *UHZRXUGHSRVLWVE\IURP
/RDQ60(YHUWLFDOƬYHDVVHWV
FHQWUHVVHUYLFHGDWRWDORI60(
borrowers, with a cumulative
SRUWIROLRVL]HRI`FURUH
%DQNKDGORDQDFFRXQWV
during the year, encompassing a
WRWDOSRUWIROLRVL]HRI`
(QWHUSULVH/RDQV6(/DQG*ROG FURUHDVRQ0DUFK
`FURUHRQ0DUFK
/RDQV
to `FURUHDVRQ0DUFK
• 3ULRULW\6HFWRU/HQGLQJ36/

• 6(/EXVLQHVVH[WHQGVDGYDQFHV continued to be the Bank’s core
• ,QFUHDVHG&XUUHQW$FFRXQW&$
acquisitions owing to enhanced
YDOXHSURSRVLWLRQVWR&$
customers, along with value-
DGGHGVHUYLFHVVXFKDV('&3R6
terminals.
• The guiding principles that
• 6WUHQJWKHQHGWKH&$GHSRVLWV
with `FURUHDVRQ0DUFK
DULVHRYHU`
FURUHDVRQ0DUFK
ranging from over `ODNKWR`
lakh, meeting credit
requirements for income
JHQHUDWLRQDYHQXHVRIƮHGJOLQJ
enterprises.
• ,QDVDSURSRUWLRQRIWKH
shaped the launch of this product
ZHUHORDQWLFNHWVL]HƮH[LEOH
funding structure, and potential
V\QHUJLHVZLWKWKHWUDGHƬQDQFH
strength; it went up from
`FURUHRQ0DUFK
WR`FURUHRQ
0DUFK
net advances of `
FURUH36/DWZDV
PDUJLQDOO\ORZHUWKDQDW
WKHHQGRIEXWZHOO
above the regulatory
• ,QWKHVDYLQJVDFFRXQW6$
deposits , the introduction of
corporate salary accounts, along
with the maintenance and
HQKDQFHPHQWRIWKHH[LVWLQJ
product schemes, enabled robust
deposit mobilisation.
• 7KH6$GHSRVLWVFORVHGDW`
FURUHDVRQ0DUFKXS
E\RYHUWKHSUHYLRXV\HDU
• The Bank mobilised deposits to
the tune of `FURUHDVRQ
0DUFK
business. UHTXLUHPHQWVRI
• 7KH6(/SRUWIROLRFORVHGDW ('&Ǖ3oS TERMINALS
`FURUHDVRQ0DUFK
7KH('&3R6WHUPLQDOSURGXFWZDV
ZLWKDWRWDOEDVHRI
UROOHGRXWLQ'HFHPEHUDQG
customers.
within four months, by the end of the
ƬQDQFLDO\HDUWKH%DQNUHFHLYHG
• Gold loans are positioned as a
DSSOLFDWLRQVRIZKLFKWHUPLQDOV
reliable and convenient source of
were already installed as on
credit for low- to mid-income
0DUFK
groups, as they are made
available with convenient DEBIT CARD
procedures and documentation.
In line with industry benchmarks, the
GHELWFDUGVEXVLQHVVJUHZRYHU
• The Bank’s outstanding
on the issuance front, while activation
JROGORDQVWRFXVWRPHUV
UDWHVDYHUDJHGDFURVVWKH
were worth `FURUHDVRQ
portfolio.
0DUFK
07
 Aapka Bhala, Sabki Bhalai.

Steady progress

Branches 1R ATMs 1R

840 282
4 4

 
4 4

 
4 growth 4 growth
\R\ \R\
 
4 4

 28 %
 24 %

4 4

Mini ATMs
+DQG+HOG'HYLFHV 1R 7RWDOWUDQVDFWLRQV 1RLQFURUH

12,004 19.28
4 4

 
4 4

 
4 growth 4 growth
\R\ \R\
 
4 4

 25 %
 36 %

4 4

08
 Corpo
ora
ate overvview
w

47

Debit cards issued 1R (PSOR\HHV 1R

95,53,813 24,220
4 4

 
4 4

 
4 growth 4 growth
\R\ \R\
 
4 4

 27 %
 18 %

4 4

Customers 1RLQODNK 7RWDOEXVLQHVV 1RLQFURUH

105 46,772
4 4

 
4 4

 
4 growth 4 growth
\R\ \R\
 
4 4

 25 %
 69 %

4 4

09
 Aapka Bhala, Sabki Bhalai.

Steady progress

7RWDOGHSRVLW 1RLQFURUH CASA 1RLQFURUH

23,229 6,837
4 4

 
4 4

 
4 growth 4 growth
\R\ \R\
 
4 4

 92 %
 162 %

4 4

7RWDODGYDQFH 1RLQFURUH GNPA ratio 

23,543 0.38
4 4

 
4 4

 
4 growth 4
\R\
 
4 4

 51 %

4 4

10
 Corpo
ora
ate overvview
w

47

3URƬWDIWHUWD[
2QTXDUWHUO\ƬJXUHV 1RLQFURUH Cost to income ratio 

322 36.31
4 4

 
4 4

 
4 growth 4 reduction
\R\ \R\
 
4 4

 127 %
 23 %

4 4

&DSLWDODGHTXDF\UDWLR  Return on equity 

26.36 28.51
4 4

 
4 4

 
4 4 growth
\R\
 
4 4

  10 %

4 4

11
 Aapka Bhala, Sabki Bhalai.

Chairman’s message
Dear Shareholders,

I am pleased to present before you The number of Doorstep Service 7KH%DQNoVRSHUDWLRQDOHƯFLHQF\ZDV

the annual report for the year Centres (DSCs), which are critical for tested by the withdrawal of the old
RI%DQGKDQ%DQN the Bank’s micro banking operations `DQG`QRWHVtWKH
For Bandhan Bank, which launched its
EDQNLQJEXVLQHVVRQ$XJXVW
ZDVWKHƬUVWIXOO\HDURILWV
operations. The three challenges that
had to be met were — leveraging its
core strength, and deepening and
broadening its micro banking
operations; spreading its branch
network in metro, urban, semi-rural
and rural areas, and providing its
online banking facility to mobilise
deposits to substitute high-cost
LQWHUEDQNERUURZLQJVXVHGWRƬQDQFH
LWVOHJDF\PLFURƬQDQFHORDQVDVZHOO
as fund new loans to its customers;
and meeting the challenge of building
up and maintaining the highest
standard of banking services through
human resource and information
technology management. It is a
matter of some satisfaction that,
while there is ample scope for
improvement on all fronts, all three
challenges were met more or less
satisfactorily.
and provide banking services to
customers near their homes, which
ZDVXQWLO0DUFK
LQFUHDVHGWRDWHQG0DUFK
With all the DSCs linked to some Bank
EUDQFKDQGWKH%DQNH[SDQGLQJLWV
branch network to all parts of the
country, the corresponding increase
in the number of branches was from
RQ$XJXVWWRRQ
0DUFKDQGWRDW
HQG0DUFK
2IWKHVHEUDQFKHVZHUHLQ
PHWURVLQXUEDQLQVHPL
XUEDQDQGLQUXUDODUHDV7KHVH
EUDQFKHVWRJHWKHUZLWKWKH
DVVRFLDWHG'6&VZHUHSURYLGLQJ
EDQNLQJVHUYLFHVWRWKH%DQNoV
lakh customers.
Recruitment, retention and
appropriate career planning of the
Bank’s human resources and
harnessing the state-of-the-art
information technology (IT) are two
keys to success. The Bank is trying to
VSHFLƬHGEDQNQRWHV6%1tRQ
1RYHPEHU/LNHDOOEDQNV
\RXU%DQNDOVRH[SHULHQFHGDVXUJHLQ
deposits with customers depositing
6%1VLQWKHLUDFFRXQWVDQGOLPLWV
applying on cash withdrawals,
because of cash shortage.
Your Bank ensured that Know Your
Customer (KYC) regulations were not
being circumvented in the process of
GHSRVLWLQJ6%1V,QWKHƬUVWFRXSOHRI
PRQWKVDIWHU6%1ZLWKGUDZDOWKH
%DQNVWDƪKDGWRPDQDJHWKHFDVK
requirements of customers, while
cash was in short supply and without
any currency chests of its own, the
Bank relied on others, with
considerable tact and sensitivity.
I believe your relatively new Bank
SDVVHGWKHWHVWLQJE\ƬUH
satisfactorily.
7KHVLJQLƬFDQWFXVWRPHUFRQƬGHQFH
garnered by Bandhan, one of the
youngest scheduled commercial
banks in India, is manifest in a near
FRSHZLWKERWKWKHVHFKDOOHQJHV2Q GRXEOLQJJURZWKLQLWVUHWDLO
the IT front, your Bank has taken
Yourr Bank ensu ured
GHSRVLWVGXULQJ:KLOHWKH
several initiatives to augment the proportion of current account and
thatt Know Yo ourr digital banking platform to its
customers. The use of its mobile
VDYLQJVDFFRXQW&$6$LQWRWDO
GHSRVLWVLQFUHDVHGIURPWR
Custtomer (KY YC) banking app ‘mBandhan’ and other GXULQJHƪRUWVFRQWLQXHWR
reguula
atioons were not internet banking channel is increasing.
7KH%DQNLVDOVRZRUNLQJRQLWV8QLWHG
increase it further.

beinng cirrcum
mve ented 3D\PHQW,QWHUIDFH83,DSS$ZDUHRI
in th
he pro ocesss of the threat of cyber-attacks, your Bank
has taken, and continues to take,
GHSR RVLWLQ
QJ6%%1V VLJQLƬFDQWSUHYHQWLYHPHDVXUHV

12
 Corpo
ora
ate overvview
w

47

7KHVLLJQLƬƬFDQ QW
FXVWWRPPHUFFRQ QƬG GHQFH
nered by
garn
Band dhan, one e of the
younngestt sch hed dulled
com
mmerccia al ban nkss in
India
a, iss manifesst in a
QHDUUG
GRXEOLQ QJ
growwth) in n itss re
eta
ail
depo osits duriing g
 

$OOPDMRUGHSDUWPHQWVRIWKH%DQN
including Business, Information
Technology, Treasury, Risk
0DQDJHPHQW&RPSOLDQFH)LQDQFH 
$FFRXQWV2SHUDWLRQ &XVWRPHU
Service and Human Resource, under
WKHJXLGDQFHRIWKH0DQDJLQJ
'LUHFWRU &(2DQGWKHHQWLUH%RDUG
of the Bank, have contributed
VLJQLƬFDQWO\WRWKH%DQNoV
achievements so far.

$KHDGWKHUHDUHPLOHVWRJR

$QG,DPVXUHZLWK\RXUFRQWLQXRXV
support, the Bank will scale greater
heights in the future. I thank you for
reposing your trust in me as the
Chairman of the Bank.

With best wishes,

Ashok Kumar Lahiri


branches
Of these 840 branches, 15%
were in metros, 27% in urban,
25% in semi-urban, and 33% in
rural areas.

13
 Aapka Bhala, Sabki Bhalai.
0DQDJLQJ'LUHFWRUoVLQVLJKW
Dear Friends,
$JDLQVWDEDFNGURSRIPDFURHFRQRPLF
VWDELOLW\ORZLQƮDWLRQDQGFXWLQ
Reserve Bank of India’s policy rates,
Bandhan Bank’s performance curve
KDVULVHQVLJQLƬFDQWO\LQWKHƬUVW
months since the commencement of
our operations.
BUSINESS PERFORMANCE
Despite being the newest entrant in
India’s universal banking space, your
%DQNKDVSHUIRUPHGH[FHSWLRQDOO\
ZHOODQGDWWUDFWHGKXJHGHSRVLWV$V
RQ0DUFKWKH%DQNoVRYHUDOO
$VRQ0DUFK
WKH%DQNoV
overall deposits
stood at `FURUH
vis-à-vis `FURUH
RQ0DUFK
14
deposits stood at `FURUH
vis-à-vis `FURUHRQ
0DUFK
Your Bank underwent a robust
H[SDQVLRQLQLWVEULFNDQGPRUWDU
GLVWULEXWLRQFKDQQHO,WLVH[SDQGLQJ
its presence across metro, urban,
semi-urban and rural regions. It aims
WRFRQWLQXHLWVH[SDQVLRQLQWKH
FXUUHQWƬQDQFLDO\HDU,QDGGLWLRQ\RXU
Bank is focussed on substantial
H[SDQVLRQLQWKHRƪVLWH$70UHDFK
along with the addition of branches
and DSCs.
DIGITAL FOCUS
$W%DQGKDQ%DQNZHHQVXUHRXU
round-the-clock availability for every
single customer by empowering our
digital platforms. We have capitalised
on digital advancements through
HQDEOLQJRIVHUYLFHVYLD$70V
internet banking, phone banking
and introduction of the online
app — mBandhan.
1HZSURGXFWVVXFKDV('&3R6
terminals were also launched in line
with the government’s drive towards
a less-cash intensive economy.
$GGLWLRQDOO\\RXU%DQNLVSRSXODULVLQJ
the use of digital transactions by way
RI,0361()7DQGGHELWFDUGVDPRQJ
RWKHUV$VDUHVXOWRIGHGLFDWHGGLJLWDO
channel initiatives, a healthy growth in
the number of registrations and usage
of the online interface has been
witnessed.
0RUHRYHUIRFXVVHGFRPPXQLFDWLRQ
initiatives driven through branches
and social media to popularise
RQJRLQJGHELWFDUGRƪHUVDUHVKRZLQJ
positive outcomes. The Bank has
achieved a favourable increase in the
number of transactions and the
amount per transaction since the start
RIWKHƬQDQFLDO\HDU
 Corpo
ora
ate overvview
w

47

GROWING OUR PRODUCT

PORTFOLIO
Taking forward the Government of
India’s vision of a digital and cashless
economy, your Bank introduced new <RXU%DQ QNX
XQG GHUZ
ZHQWDUR REXVWH
H[SDQVLRQLQ
SURGXFWVGXULQJWKHƬQDQFLDO\HDU7R
acquire more business, we opened its brick-a
and
d-mmorttarr disstrib
bution
n channel. It is
new current accounts and deepened H[SDQGLQ QJLLWVS
SUHVVHQFHHDFUURVVP
PHWURRXUEDQ
UHODWLRQVKLSVZLWKH[LVWLQJFXUUHQW
DFFRXQWFXVWRPHUVDFURVVPDMRUDQG semi-urb ban annd ruural re
egio ons.
small towns and villages.

7KH('&3R6WHUPLQDOSURGXFWZDV 733LQ,WWDUJHWVWR I am grateful to all our stakeholders

UROOHGRXWLQ'HFHPEHU6LQFH
WKHUROORXWWKH%DQNLQVWDOOHG
WHUPLQDOVDVRQ0DUFK
DYHUDJLQJDURXQG('&3R6
applications every month.
Your Bank focusses on strategic risk
GLYHUVLƬFDWLRQDFURVVFXVWRPHU
categories and sectors. Introduction
of new products is enabling the Bank
shore up its assets portfolio.
ROAD AHEAD
To accelerate its growth pace, your
Bank plans to foray into the
distribution of third-party products
HVWDEOLVKLWVPXWXDOIXQG0) for helping us to grow and
business and intends to commercialise outperform in the world of banking.
it through the metro and urban I look forward to your continued
EUDQFKHVLQWKHƬUVWTXDUWHURIWKH support and I promise a great future
FXUUHQWƬVFDO7KHSULPDU\DLPLVWR together.
H[SDQGWKHFXVWRPHUEDVHDQG
strengthen earnings. Warm regards,
Chandra Shekhar Ghosh
In addition, your Bank will also
commence its general insurance (GI)
business through a corporate agency
licence. The inclusion of these
products in the Bank’s portfolio will
further strengthen its position in the
universal banking space.
15
 Aapka Bhala, Sabki Bhalai.

“Thannks to
o Ban
ndh han
Bankk and theirr prrompt
service
e, to
oday I livve in a
puccca house.”

Turning
aspirations
to reality

Indreswar Baishya hails from a village +HZDVGHMHFWHGDVKHUHDOLVHGKRZ

QHDU$VVDPoVFDSLWDO*XZDKDWL(YHU
since he was a little boy, he wanted to
have a puccaKRXVH$IWHU0U%DLVK\D
JRWDMREDVDVFKRROWHDFKHUKH
hoped he would be able to construct
KLVGUHDPKRPHVRRQ$QGSURYLGHKLV
family the warmth and security they
deserve.
But alas! That was not to happen.
(YHU\ƬQDQFLDOLQVWLWXWLRQKH
approached turned down his home
loan request. Some cited that his
property was located in a remote
area, while others demanded a string
of documents.
GLƯFXOWLWLVWRDFTXLUHDORDQWREXLOG
DKRXVHMXVWNLORPHWUHVIURPWKH
state capital.
%XWZKHQ0U%DLVK\DFDPHDFURVV
Bandhan Bank, his hopes were
rekindled. Finally, he approached the
Bank and his loan was disbursed in
MXVWGD\V$QGKHFRXOGEHJLQ
construction.
Today, he is the proud owner of a
pucca house and hopes this is the
beginning of a long association as he
wants to further enhance his family’s
lifestyle.

Mr. Indreswar Baishya, Kendukona

QHDU*XZDKDWL
16
 Corpo
ora
ate overvview
w

47
Helping
dreams While looking for a suitable home loan
scheme, he realised that with a
property located in the interiors it will
EHYHU\GLƯFXOWWRDWWDLQKLVREMHFWLYH

come
0RVWƬQDQFLDOLQVWLWXWLRQVUHMHFWHGKLV
application and others demanded he
3UDVDQWD+DOGHULVDUHVLGHQWRI
IXUQLVKDQXPEHURIGRFXPHQWV0U
Bongaon, near Kolkata, where he lived
Halder clearly saw this way he would
with his wife, mother and two
QHYHUEHDEOHWRIXOƬOKLVPRWKHUoV

true
FKLOGUHQ0U+DOGHUoVZLIHZDVWKHQ
dream of residing in a pucca house.
an active member of Bandhan Bank
*URXS/RDQ7KH+DOGHUIDPLO\UHVLGHG
When he shared this concern with his
in a two-roomed kachcha house and
wife, she suggested Bandhan Bank.
wanted a larger comfortable home.
+HUFRQƬGHQFHLQWKHRUJDQLVDWLRQ
But they lacked the resources to
UHQHZHG0U+DOGHUoVHQHUJLHVWR
FRQVWUXFWRQHZLWKRXWƬQDQFLDO
pursue a home loan.
support.
2QFH0U+DOGHUDSSOLHGIRUWKHORDQ
Therefore, a home loan was the best
in Bandhan’s Bongaon branch, his loan
RSWLRQIRU0U+DOGHU
was sanctioned within three days of
document collection and it was
disbursed within a fortnight. Within
VL[PRQWKVWKHIDPLO\VKLIWHGWRWKHLU
new two-storeyed home that uplifted
the family’s lifestyle.

0UDQG0UV+DOGHUDUHFRQƬGHQWWKDW
with Bandhan Bank by their side, they
will shape a better future for their
family.

3UDVDQWD+DOGHU
%RQJDRQQHDU.RONDWD

“Withh Band dhan Ba ank by

our sid
de, I am sure e our
familly willl have
e a better
futurre. Bandha an has
helpeed me makke a pucca
housse foor my motther in
her oldd age.””
17
 Aapka Bhala, Sabki Bhalai.
Digitisation is essential for new age
bank operating in a developing
economy like India with a policy thrust
towards building a digital economy.
2XUREMHFWLYHLVWRVWUHQJWKHQRXU
digital footprint in a safe and secured
manner. Besides, our digital strategy
will strengthen our pan-India reach,
provide our business with the ability
to use data in new and innovative
ZD\VDQGKHOSXVH[FHHGWKH
H[SHFWDWLRQVRIFXVWRPHUVZLWK
products and services that set new
industry benchmarks.
18
Band dhan Ban nk
belie
eves dig gittisa
ation,
powwere ed by besst--in-
classs techhnolloggy, is a
key competittive e
advaantage fo or anyy
bankk inn the worrld.
Digitisation has given immeasurable
power in the hands of customers. It
banking on
has ushered in the era of on-demand the move
EDQNLQJZLWKDSOHWKRUDRIRƪHULQJV
Bandhan Bank has always leveraged
whenever, wherever.
WHFKQRORJ\HƪHFWLYHO\WRVWD\UHOHYDQW
to evolving customer aspirations.
Bandhan Bank realises this growing
mBandhan, the mobile banking
need of customers and accordingly
application, Internet banking
has created technology-led products
(for corporate and retail customers)
to deliver a seamless banking
DUHRƪHULQJVWKDWSURYLGHWKH
H[SHULHQFH7KHDJLOLW\DQG
convenience of banking while on
consistency in introducing these
the move.
services has helped meet the
H[SHFWDWLRQVRIFXVWRPHUV7KH
commitment to improve the
H[SHULHQFHIRUFXVWRPHUVFRQWLQXHV
to motivate the Bank to deliver
VHUYLFHVWKDWH[FHOLQTXDOLW\DQG
speed of delivery, using contemporary
technology.

banking at
your place
0LFUREDQNLQJVHUYLFHVDUHSURYLGHG
close to the homes of micro
ERUURZHUV'RRUVWHS%DQNLQJ2ƯFHUV
payment gateway for
online banking
Bandhan Bank has tied up with two
3D\PHQW*DWHZD\6HUYLFHSURYLGHUV
for online net banking transactions.
Corpo
ora
ate overvview
w
47
The Bank has a state-of-the-art
primary Data Centre and Disaster
Recovery Centre to secure live
systems. Both the Data Centre and
'LVDVWHU5HFRYHU\&HQWUHDUH,62
DQG3&,'66&HUWLƬHGZKLFK
are vital to business operations.
'%2YLVLWFXVWRPHUVDQGXVH
Hand-Held Devices (HHDs) to conduct
banking transactions. This service is an
Customers can pay, shop online
Substantial progress has been made
WKURXJKQHWEDQNLQJRQ
in the implementation of RBI
merchant websites. The Bank has also
guidelines on Technology Risk
LQGXVWU\ƬUVWDQGLVQRZZLGHO\
accepted in the business of
PLFURƬQDQFH%HVLGHVLQQRYDWLYH
ways of banking are provided such as
collections of loan instalments and
providing cash receipts and payments
for customers at their doorsteps.
Banking at the place of choice was
never so easy and simple.
integrated
services
Bandhan Bank provides a great
FXVWRPHUH[SHULHQFHRQWKHVWUHQJWK
of personalised attention and
handholding, along with technology-
VWDUWHGWKH('&3R63RLQWRI6DOH
Business and has acquired and
GHSOR\HG3R67HUPLQDODW
merchant outlets, which accept Rupay
and Visa Cards. The Bank has enabled
FXVWRPHUVWRFRPSOHWH$DGKDDU
seeding and mobile registration
WKURXJK%DQN$70V
safe and secure
banking
Bandhan Bank has implemented a
UREXVW,73ROLF\,QIRUPDWLRQ6HFXULW\
3ROLF\DQG&\EHU6HFXULW\3ROLF\7KHVH
policies are in line with international
best practices. They are reviewed
periodically and suitably
strengthened to address
0DQDJHPHQW,QIRUPDWLRQ6HFXULW\
and Cyber Fraud.
The Bank is in the process of
implementing additional IT security
products and features to provide
top-notch information security
features and ensure safe and secure
banking to all customers. Regular
cyber security drills and employee
awareness programmes are
conducted to enhance security and
awareness.
The Bank has implemented biometric
login for all employees to log in to the
core banking application, which
provides an edge on the information
security front as it makes system log
in a two-factor authentication
process. The Bank has implemented
state-of-the-art advanced malware
protection solutions to secure
banking systems from current cyber
threats.
Bandhan Bank has created resiliency
LQEXVLQHVVHVE\RSHQLQJRƯFHVLQ
new locations. The treasury front
RƯFHRSHUDWLRQVDUHLQ0XPEDLDQG
EDFNRƯFHRSHUDWLRQVDUHDGGLWLRQDOO\
supported through a Central
VXSSRUWHGVHUYLFHV2SHQLQJRIDQ
account, issue of a draft, payment of a
cheque, facility of scheduling
SD\PHQWVRUWUDQVIHUVRIIXQGVsDOO
these services are provided seamlessly
emerging threats. 3URFHVVLQJ8QLW&38LQ,QGRUH
Disaster Recovery Drills are conducted
regularly as a part of the
implementation of the Business
&RQWLQXLW\0DQDJHPHQW6\VWHP
with the state-of-the-art core banking %&06&ULWLFDO,76\VWHPVDUH
solution. These services represent compliant with the International
integration of the digital and the %&066WDQGDUGs,62s
SK\VLFDO7KH%DQNKDVEUDQFKHV
$70VDQGGRRUVWHSVHUYLFH
centres functioning seamlessly.

19
 Aapka Bhala, Sabki Bhalai.

$W%
%DQ QGKDQ% %DQ QN
RXUREEMHFFWLYH
HLVVWR
R
er to the
cate
aspiraatio
ons of
econnomicallyy
disadvvantage ed
secttio
ons of soociiety;
and actt as a veh hiccle
of emmpow werm ment
from
m grassro ootss.

2XUPLFUREDQNLQJEXVLQHVVHQDEOHV
us to reach out to the poor and
low-income individuals and groups.
2XUEXVLQHVVLVGULYHQWKURXJKD
separate organisational structure,
RSHUDWHGE\RƯFLDOVKDYLQJH[SHUWLVH
in the area.

7KHWHDPFDWHUVWRWKHVSHFLƬFQHHGV
RIFXVWRPHUVXQGHUPLFURƬQDQFH
through those doorstep service
FHQWUHV'6&VZKLFKDUHSUR[LPDWH
to the micro-borrowers. The entire
network operates on a hub-and-spoke
model.
20
DSCs)250,&52Ǖ%$1.,1*
DSCs provide doorstep services to
micro banking customers. They are
supported by trained people to cater
WRWKHVSHFLƬFQHHGVRIVXFK
customers. To be eligible for availing
loan facilities, the customers under
micro banking compulsorily hold
savings bank accounts with the linked
EDQNEUDQFK$URXQG'6&VDUH
linked to a bank branch to provide
prompt services for any queries raised
by patrons.
For customer’s convenience and
VDYLQJWKHLUWLPHWKH'6&RƯFLDOV
visit their doorsteps to facilitate the
collection of repayment as well as
VPDOOGHSRVLWV$GGLWLRQDOO\WKLVDOVR
UHGXFHVWKHHƪHFWLYHFRVWRI
transaction for customers. The DSCs
(being near the customer’s locality)
handle and support various
requirements of micro banking
customers.
$'6&SOD\VDQH[FOXVLYHUROHLQ
VHUYLFLQJWKHƬQDQFLDOO\H[FOXGHG
section of society through its unique
operational model of understanding
the customer’s needs, monitoring
operations and facilitating solutions.
This model is critical to serving
FXVWRPHUVHƪHFWLYHO\
 Corpo
ora
ate overvview
w

47
,1,7,$7,9(6
UNDERTAKEN AT
'22567(36(59,&(
&(175(6Ǔ'6&sǔ

FORMATION OF
OFFICIAL GROUPS

23(1,1*6$9,1*6
BANK ACCOUNTS
0,&52Ǖ%$1.,1*,1,7,$7,9(6
Customer-oriented
$W%DQGKDQZHDUHSHRSOHFHQWULF
2XUHPSOR\HHVDUHWUDLQHGWRSURYLGH
micro banking services with a human
WRXFK7KH'6&VWDƪXQGHUVWDQGVWKH
SOURCING LOAN PROPOSAL human dynamics and integrates
FROM CUSTOMERS customer insights with the
operational framework.
Digital focus
7KH'6&VWDƪLVSUHSDUHGWRRƪHU
instant advice and solutions to
customers. This has been made
APPRAISAL OF LOAN possible by equipping them with
APPLICATIONS digital media like tablets and mobile
phones. The use of digital media has
helped accelerate operations and led
to an escalation in business
acquisition.
Strict monitoring
DOCUMENTATION & We ensure a multi-tiered monitoring
DISBURSEMENT OF LOANS V\VWHPLQSODFH2XULQGHSHQGHQW
$XGLW'HSDUWPHQWFRQGXFWVDXGLWVRQ
a frequent basis to closely review our
activities in line with business policies.
The audit score of DSCs and branch
LVFRQVLGHUHGIRUULVNSURƬOLQJRI
the unit.

FACILITATING WITHDRAWAL Facilitating support

2)6$9,1*67+528*+++'s 7KH%DQNKDVDQHƪHFWLYHVXSSRUW
mechanism, wherein various
operational issues are resolved at an
appropriate level. This ensures
HƯFLHQWDQGVPRRWKRSHUDWLRQVDW
the ground level and enables easy
understanding of the micro-
ƬQDQFHSURFHVVHV

21
 Aapka Bhala, Sabki Bhalai.

6DPDLSXUoV8VKDIRXQGLWYHU\GLƯFXOW
to make both ends meet with her on
DQGRƪVHZLQJEXVLQHVV7KH
seamstress was the only earning
member of her family and her
earnings were never enough to feed
her family two square meals.

8VKDZDVVORZO\ORVLQJKHUEDWWOH
against poverty and contemplating
KHUQH[WPRYHZKHQVKHFDPHDFURVV
Bandhan Bank. With a quick loan of
`%DQGKDQKHOSHGKHUVHWXSD
JURFHU\VKRS2YHUWKH\HDUV
Bandhan Bank helped her grow the
business with other loans in the
subsequent years.

$WSUHVHQWVKHLVDPRWLYDWHGDQG
enthusiastic member of the Tulsi
group and readily recounts how
Bandhan Bank changed the tide of
her life.

Usha Devi, Delhi

“Band dhan Bankk ch hannged

my entiire life. Tod dayy,
I can pro
ovidde com mfo ort to
P\IDDPLO\\(
(DUOOLHUU
I could
dn’t evenn fe ee d
themm twicce daily.””

22
 Corpo
ora
ate overvview
w

47

“Banddhan Bankk sttood

de me whe
besid en I
QHHG
GHGWK KHP0\\E ERQG
with Bandhan gro ows
stronnger witth eveeryy
passiing
g year.”

Suman Devi’s story shows how grit

and determination of one person and
DVWURQJƬQDQFLDOVXSSRUWFDQFKDQJH
many lives.
/LNHPRVWZRPHQEH\RQG,QGLDoV
metros, Suman Devi had limited
opportunities. But she made the most
RIWKHP,QVKHERUURZHG
`IURP%DQGKDQWREX\D
sewing machine and start her own
business. Her hard work and
determination, along with subsequent
ORDQVIURP%DQGKDQ1%)&DQG
Bandhan Bank helped her grow the
business.
Slowly, she began to supply
readymade garments to stores in
-DLSXU$VKHUEXVLQHVVH[SDQGHG
6XPDQ'HYLKLUHGQHZVWDƪWKXV
generating employment for others.
Currently, she is the proud owner of a
readymade garments business and
plans to grow beyond the pink city.
With her earnings, Suman Devi is able
to provide a better lifestyle for her
family, including quality education for
her children.
Suman Devi, Jaipur

23
 Aapka Bhala, Sabki Bhalai.

2ƪHULQJVIRUDOO
We are committted to DEPOSIT
PRODUCTS
IXOƬOOLLQJWWKHƬQ
QDQFLDO
requuirrements of
everry Inndian in this
neww era of in nclu
usiive
bankkinng.

6$9,1*6$&&28176
Premium Savings Account
&XVWRPHUVFKRRVHRXU3UHPLXP
6DYLQJV$FFRXQWWRH[SHULHQFH
HƪRUWOHVVDQGKDVVOHIUHHEDQNLQJD
host of relationship privileges and
complimentary premium banking
services.
Advantage Savings Account 6$9,1*6
2XUFXVWRPHUVHQMR\H[FOXVLYH
EDQNLQJEHQHƬWVDQGVHUYLFHVZLWKWKH
ACCOUNTS
$GYDQWDJH6DYLQJV$FFRXQWZKLFK
RƪHUVDUDQJHRISURGXFWVDQG
services. This account comes with
improved access and higher
transaction limits.
Standard Savings Account Sanchay Savings Account GOS Savings Account
7KH6WDQGDUG6DYLQJV$FFRXQWLV 7KH6DQFKD\6DYLQJV$FFRXQWZLOO This account is available to
packed with great features to provide KDQGKROGWKRVHZKRDUHMXVWVWDUWLQJ government departments/bodies/
you with a superior banking WKHLUVDYLQJVMRXUQH\7KLVDFFRXQW agencies for grants/subsidies released
H[SHULHQFHDWDYHU\FRPIRUWDEOH allows unparalleled access to the for the implementation of various
minimum balance requirement. amount saved and makes tracking programmes and schemes, sponsored
account activity easy. by the Central Government/State
Special Savings Account *RYHUQPHQWVVXEMHFWWRWKH
We understand that people with Basic Savings Account production of an authorisation from
special needs or physical disabilities 7KHSULPDU\REMHFWLYHRIWKLVSURGXFW the respective government
KDYHGLƪHUHQWWUDQVDFWLRQDO LVWRSURPRWHƬQDQFLDOLQFOXVLRQ departments.
requirements. With customer needs in targeted towards the under-banked
mind, we’ve designed a Special segments of society, which have
6DYLQJV$FFRXQWWRHQVXUHFRQYHQLHQW limited access to banking services in
and hassle-free banking. any form.

24

CURRENT ACCOUNTS
Biz Premium Current Account
7KH%L]3UHPLXP&XUUHQW$FFRXQWLVD
high-end account that allows our
FXVWRPHUVWRHQMR\DKRVWRI
privileges with a monthly average
balance requirement of `
FIXED DEPOSITS
Premium Fixed Deposit
$KLJKHQGSURGXFWUHTXLUHVD
minimum deposit amount of `FURUH
with tenures ranging from seven days
WR\HDUV2QHFDQDYDLOGLƪHUHQWLDO
rates of interest for high-value
deposits.
Advantage Fixed Deposit
With this reinvestment plan, earn
interest that is compounded quarterly
and reinvested with the principal
amount. The maturity period ranges
IURPVL[PRQWKVWR\HDUV
Standard Fixed Deposit
:LWKWKLVWUDGLWLRQDOƬ[HGGHSRVLW
plan, earn interest on a monthly/
quarterly basis, as per your
convenience. The maturity period
UDQJHVIURPVHYHQGD\VWR\HDUV
Biz Advantage Current Account
7KH%L]$GYDQWDJH&XUUHQW$FFRXQW
FRPHVZLWKDQDUUD\RIEHQHƬWVZLWKD
monthly average balance requirement
of `
Biz Standard Current Account
7KH%L]6WDQGDUG&XUUHQW$FFRXQW
RƪHUVWKHEHVWYDOXHIRUFXVWRPHUoV
money. With a monthly average
balance requirement of `WKLV
DFFRXQWZLOOIXOƬODOOEDQNLQJQHHGV
CURRENT
ACCOUNTS
FIXED
DEPOSITS
Tax Saver Fixed Deposit
7KLVSURGXFWRƪHUVHDV\WD[VDYLQJ
investment options under Section
&,WUHTXLUHVDPLQLPXPGHSRVLW
amount of `DQGDOORZVD
PD[LPXPGHSRVLWRI`LQD
ƬQDQFLDO\HDU
Corpo
ora
ate overvview
w
47
TASC Current Account
7$6&&XUUHQW$FFRXQWRƪHUV
complete banking solutions to
QRQSURƬWRUJDQLVDWLRQVWUXVWV
associations, societies, clubs,
hospitals, educational institutions,
6HFWLRQFRPSDQLHVDPRQJRWKHUV
with a monthly average balance
requirement of `
GOS Current Account
7KH&XUUHQW$FFRXQW*26LVD
high-end current account, catering to
all transactional and banking
requirements of government
organisations. It comes with a range
of facilities and services.
Samriddhi Current Account
7KH6DPULGGKL&XUUHQW$FFRXQWLV
most suitable for small retailers,
traders, self-employed professionals,
such as doctors, architects, chartered
accountants, and company
secretaries, among others. It gives the
optimum value for your money at a
low monthly average balance of
`
25
 Aapka Bhala, Sabki Bhalai.

2ƪHULQJVIRUDOO

RECURRING
RECURRING DEPOSITS DEPOSITS
$5HFXUULQJ'HSRVLW$FFRXQWFDQEH
RSHUDWHGVLQJO\RUMRLQWO\UHTXLULQJD
minimum investment of `DQG
PXOWLSOHVRI5HWKHUHDIWHUZLWK
WHQXUHVUDQJLQJIURPVL[PRQWKVWR
\HDUV
Dhan Samriddhi (Cash
NRI Accounts
These accounts are packed with
H[FLWLQJIHDWXUHVDQGEHQHƬWV7KH\
&HUWLƬFDWH6FKHPH
With this reinvestment plan, earn
interest that is compounded quarterly
and reinvested with the principal
amount. The maturity period ranges
IURPVL[PRQWKVWR\HDUV7KLV
growth-oriented scheme is designed
to help our customers meet their
ƬQDQFLDOREMHFWLYHVVXFKDVHGXFDWLRQ
health, marriage and travel in a short
time span.
DOVRRƪHUƮH[LELOLW\WRHDUQDWWUDFWLYH
UHWXUQVRQVDYLQJVDQGƬ[HGGHSRVLWV
EDC-PoS Terminals
Bandhan Bank established its
merchant acquiring business to
LQFUHDVHWKHSHQHWUDWLRQRILWV3R6
terminals across not only in towns and
cities, but also in the comparatively
smaller, cash-intensive towns and
YLOODJHV2QDQDYHUDJHWKH%DQN
VRXUFHVRYHU('&3R6WHUPLQDO
installation applications every month.
In line with the government’s clarion
call to migrate towards a less-cash
economy, and to promote digital
transactions, the Bank will be
H[SDQGLQJLWVFDUGDFFHSWDQFH
infrastructure.
Alternate Channels
$QXQSUHFHGHQWHGZDYHRI
digitisation has inundated the
FRXQWU\oVƬQDQFLDOVHFWRU7KH
demonetisation initiative is being
spearheaded with vigour by the
Government, and both, public and
private sector participants, are
participating with equal enthusiasm
to navigate towards a less cash-
intensive, digital environment.
However, even before the
demonetisation initiative, the Bank
was actively promoting its alternate
FKDQQHOVsGHELWFDUGVLQWHUQHW
banking (retail and corporate) and
PRELOHEDQNLQJP%DQGKDQsWR
onboard as many customers as
possible onto these vehicles of ease
DQGFRQYHQLHQFH7KHUHVXOW
mBandhan and Internet Banking
witnessed robust growth in total
registrations and usage as well.
mBandhan registrations saw a
substantial uptick, while Internet
Banking (Retail and Corporate), too,
registered impressive numbers.

26

ASSET PRODUCTS
SME LOANS
2XUFXVWRPHUVH[SDQGWKHLU
businesses with Bandhan Bank’s range
RI60(/RDQVZKLFKKHOSFUHDWH
income-generating assets and
enhance liquidity. Businesses can now
JURZH[SRQHQWLDOO\ZLWKEHWWHUDFFHVV
to funds that facilitate productivity.
RETAIL LOANS
2XU5HWDLO$VVHW/RDQVKHOSDFTXLUH
FRQVWUXFWH[WHQGUHQRYDWHWKH
FXVWRPHUoVGUHDPKRPHRQƮH[LEOH
WHUPV$OVRRQHFDQJHWDORDQE\
OHYHUDJLQJH[LVWLQJSURSHUW\IRU
productive purposes or plan the
desired two-wheeler with our loan.
1RZQRGUHDPLVWRRELJWRIXOƬOZLWK
RXUZHOOFUDIWHG3HUVRQDO/RDQ
RƪHULQJV
AGRICULTURE LOANS
2QHFDQLQYHVWLQTXDOLW\IDUPODQG
livestock, plants, or warehouses with
%DQGKDQ%DQNoV$JULFXOWXUH/RDQV
These loans have been designed to help
our customers make the best possible
use of their agricultural assets, and
thereby optimise their output.
SMALL ENTERPRISE LOANS
Bandhan Bank’s uniquely designed
6PDOO(QWHUSULVH/RDQVHPSRZHU
entrepreneurs, who are in the process
of scaling their businesses. These
loans are for income-generating
activities in the form of working
capital or asset creation and even for
short-term business requirements.
Corpo
ora
ate overvview
w
47
MICRO BANKING LOANS
We help our customers to earn an
independent living by starting their
own home-based business with
%DQGKDQ%DQNoVYDULRXV0LFUR%DQNLQJ
/RDQV:LWKWKHVHORDQVRQHFDQ
invest in income-generating activities
that were previously rendered
inaccessible; and this is facilitated
through timely and convenient access
to funds.
GOLD LOANS
Gold loans help meet urgent fund
UHTXLUHPHQWV2QHFDQDYDLOWKHORDQ
through our seamless application
process, delivered through a
comfortable and convenient
H[SHULHQFH
27
 Aapka Bhala, Sabki Bhalai.
Drivers of our business
7RDWWDLQDKLJKHUJURZWKWUDMHFWRU\
we are concentrating on
strengthening our information
technology, talent management,
treasury operations and compliance
INFORMATION TECHNOLOGY
infrastructure, among others. We are
FRQƬGHQWWKDWE\IRFXVVLQJRQWKHVH
growth drivers, we will continue to
create more value for our customers,
and in turn for all stakeholders.
Grow the Bank
Information technology at Bandhan *7%
Bank ensures a seamless operation,
supported by bespoke software and
Change the Bank
hardware infrastructure. The Bank
&7%
measures business outcomes
generated by IT processes to identify
areas of improvement.
Run the Bank
57%
Core IT
objectives

Run the Bank (RTB): Seamless

support to existing applications
and infrastructure

• Consistent functionality of
banking products to provide
EHWWHUFXVWRPHUH[SHULHQFH

• Timely resolution of issues,

related to software and
hardware.

• $XWRPDWHGRSHUDWLRQDODQG
reporting tasks to enhance
HƯFLHQF\DQGUHGXFHULVNV

• ,PSURYHGHƯFLHQF\LQFXUUHQW
operations and increasing
EXVLQHVVHƪHFWLYHQHVV

• 3ULRULW\EDVHGUHVROXWLRQIRU
LQWHUQDODQGH[WHUQDOFXVWRPHU
issues in Core Banking Solutions
(CBS).

6XSSSRUWLQQJ


nches acrrosss
bran
,QGLD
D

'
'6&
&VDQG
$$70VDDQG

lakh customers.

28
 Corpo
ora
ate overvview
w

47

Grow the Bank (GTB): Adopting IT

to drive business growth

• 3URYLGHVHDPOHVVVXSSRUWWR,7
infrastructure and systems for
Change the Bank (CTB): Agility to JHRJUDSKLFH[SDQVLRQRIUHWDLO
banking, which includes both
meet changing business needs
general banking and micro
banking branches.
r (QKDQFLQJFXUUHQWIHDWXUHVWR
meet banking, operational and
• (TXLSWKH%DQNZLWKLQQRYDWLYH Road ahead
reporting needs.
solutions to help in customer
We are in step with the Government
retention and acquisition.
• Incorporating new products and of India’s vision of Digital India to
features to provide customer elevate the quality of life of millions
• Build products and features,
H[SHULHQFHDWSDUZLWKOHDGLQJ of people, energise the economy and
VXSSRUWLQJDGMDFHQWEXVLQHVV
banks. enhance transparency. We have put in
development in a timely manner.
place best-in-class technology and are
r $FTXLULQJPHUFKDQWVDQGSDUWQHUV constantly innovating to launch varied
• 8VHDQDO\WLFVWRGULYHLQVLJKWV
to enable the use of Current products and services to cater to the
from customer and transaction
$FFRXQWDVSULPDU\DFFRXQW evolving aspirations of a wide
data for business decision-making
cross-section of customers. For us,
DQGH[SDQVLRQ
r 0HDVXULQJDQGDVVHVVLQJ,7 WKLVLVMXVWWKHEHJLQQLQJDQGZHDUH
processes to drive continuous JHDUHGIRUDQH[FLWLQJDQGHYHQWIXO
• Implement technologies and
improvement. MRXUQH\
processes, which are open,
HƪHFWLYHDQGVFDODEOH
r 3URYLGLQJWUDFWDELOLW\EHWZHHQ,7
initiatives and business strategy.

1HZ
ZDDJHIHDWWXUH HV
• 9,6$ $&&DUGG
• 13& &,33D\6HHFX
XUH
• )OOH[[L))'
• 3DDVVERRNS SULQ
QWLQJ
in
n DSCs
• BiillD
Desk intteg graation
• Coorporrate intternet
baankin ng

29
 Aapka Bhala, Sabki Bhalai.

Drivers of our business

TREASURY OPERATIONS
2XUWUHDVXU\RSHUDWLRQVDUHPDQDJHG and settle transactions, and generate We have an asset liability
E\DKLJKO\HƯFLHQWWHDPFRPSULVLQJ
IURQWRƯFHPLGRƯFHDQGEDFN
RƯFHVLQFHLQFHSWLRQ7KHWUHDVXU\
focusses primarily on the
management of our Bank’s funds.
Besides, it is involved in the
maintenance of statutory reserves
(cash reserve ratio and statutory
liquidity ratio), manage asset liability
gaps, interest rate risk, liquidity,
LQYHVWPHQWVDQGWUDGLQJDFWLYLWLHV$W
0,6UHSRUWV)XOO\DXWRPDWHGV\VWHPV
DQGSURFHVVHVUHƮHFWRXUDJLOLW\LQ
adopting technology to match market
standards.
We maintain adequate liquidity and
FRQWLQJHQF\EXƪHUWREXLOGUHVLOLHQFH
against market volatilities and cater to
FKDQJLQJFXVWRPHUUHTXLUHPHQWV2XU
Bank is active in overnight call money
market, collateralised borrowing and
PDQDJHPHQW$/0GHVNDQGD
proprietary desk to manage the
LQYHVWPHQWSRUWIROLRLQƬ[HGLQFRPH
VHFXULWLHV$W%DQGKDQ%DQNZH
follow investment strategies to
optimise duration and return on
investments. Besides, we do not have
any non-performing investments.
Despite being in the early stages of
treasury operations, our treasury
Bandhan Bank, we have a Board- OHQGLQJREOLJDWLRQ&%/2PDUNHWUHSR function has demonstrated high
approved investment policy regulated variable rate reverse repo and liquidity standards of professionalism,
by RBI guidelines and standard
procedures for carrying out treasury
transactions.
From the beginning, we have a
fully-automated treasury software
DGMXVWPHQWIDFLOLW\/$)WUDQVDFWLRQV
for managing its funding requirements.
The resource mobilisation strategy
plays a vital role in managing our
VRXUFHVRIIXQGVZLWKDQRSWLPDOPL[RI
term deposits and interbank
proactivity and precision in all dealing
DFWLYLWLHVLQWKHƬQDQFLDOPDUNHW2XU
treasury reported a robust
SHUIRUPDQFHLQ
system to capture, authorise, verify
TALENT MANAGEMENT
$EXVLQHVVLVDVJRRGDVLWVSHRSOHDQG
at Bandhan Bank, we are fortunate to
have a great team, which helps us to
consistently create value. With
earnest commitment, energy and
initiative, our people are helping the
Bank to achieve its strategic mission.
$W%DQGKDQ%DQNWKHSXUSRVHRI
Human Resources (HR) department is
to ensure that our employees are
engaged and motivated to contribute
to the Bank’s growth. The HR
department remains committed
towards promoting a sustainable
performance-driven culture. It aims to
create an environment and culture of
learning and superior performance.
Besides, the department is focussed
on integrating our corporate values
and aligning the personal aspirations
of employees to our business
REMHFWLYHV
2XUHPSOR\HHHQJDJHPHQWLQLWLDWLYHV
include putting greater emphasis on
learning and development, providing
our people opportunities to seek
30
SDUWLFLSDWRU\FHUWLƬFDWHV,%3&
aspirational roles, streamlining the • Training on operational risk,
performance management system audit, compliance and regulatory
and introducing performance-linked DVSHFWVIRUIURQWOLQHVWDƪ
rewards.
• 3UHSDULQJHPSOR\HHVIRU
We organise programmes that meet leadership roles through special
the Bank’s learning and development programmes on people
needs, and promote an ecosystem management, customer-centric
where learning, self-growth and approach, compliance
H[FHOOHQFHDUHHQFRXUDJHG7KH and so on.
learning architecture in our
RUJDQLVDWLRQIRFXVVHVRQ
• Developing tailor-made,
competency mapped
SURJUDPPHVIRUGLƪHUHQWVHWV
of employees, based on their
roles in the Bank.
• Inculcating the Bank’s
culture among recruits
through induction or
orientation programmes.
 Corpo
ora
ate overvview
w

47

Through our eight residential training SURJUDPPHV0RUHRYHUWKHVH developmental feedback between the
centres across India, we have institutes help us to conduct appraisee and appraiser. Besides, it
SURYLGHGGD\V)<RI
training to employees, spanning
GHSDUWPHQWVDQGIXQFWLRQV2XU
people went through a wide range of
training programmes to build their
professional competence and
improve their skill sets.
$GGLWLRQDOO\WKH%DQNFRQWLQXHVWR
specialised programmes for our
senior and mid-management level
employees.
$W%DQGKDQ%DQNZHEHOLHYHWKDWWKH
performance management process is
a powerful driver of individual and
FRUSRUDWHSHUIRUPDQFH$QRQOLQH
performance management system
aims to encourage employee
RZQHUVKLSRIREMHFWLYHV,QDGGLWLRQ
softer behavioural attributes like
adherence to the organisation’s
values, customer focus,
accountability, teamwork and so on
are integral to our performance
management process.
engage with leading management
institutes for leadership and
management development
COMPLIANCE FRAMEWORK
306ZDVLQWURGXFHGZLWKIRFXVRQ
building transparency in performance
assessments, and encouraging
dialogue on performance and
aspects and management of
compliance risk faced by our Bank. It
Going forward, we will continue to
align our HR practices to build critical
organisational capabilities. Besides,
we will consistently support a
conducive work environment to
enhance employee satisfaction
and enable the achievement of
VWUDWHJLFREMHFWLYHV
Indian Accounting Standards
$W%DQGKDQ%DQNZHIROORZWKH ,1'$6LPSOHPHQWDWLRQ
apprises both the Board of Directors
highest levels of compliance to the
DQGWKH6HQLRU0DQDJHPHQWRQRXU
regulatory and internal guidelines. The Bank has commenced the process
compliance status and the changes in
The Board and the Senior RI,1'$6,QGLDQ$FFRXQWLQJ
regulatory environment, periodically.
0DQDJHPHQWRIRXU%DQNUHPDLQ Standards) implementation and made
7KH$XGLW&RPPLWWHHRIWKH%RDUG
committed to ensure that our a diagnostic study to identify the
reviews the status of compliance
business is conducted within the GLƪHUHQFHEHWZHHQWKHFXUUHQW
with regulatory guidelines on a
purview of legality and the broader DFFRXQWLQJIUDPHZRUNDQG,1'$6
periodic basis.
standards of integrity and ethical The Bank is also availing service of an
conduct. H[WHUQDOFRQVXOWDQWIRUWKLVSXUSRVH
We facilitate improvement in
7KH%DQNKDVTXDOLƬHGWKHLPSDFWDQG
compliance culture through
7KXVWRDGKHUHWRWKLVREMHFWLYH ƬOHGWKHSURIRUPDƬQDQFLDO
dissemination of regulatory guidelines
we set up an enterprise-wide statements for the half year ended
from time to time, issuing circulars
independent Compliance Department. 6HSWHPEHUZLWKWKH5HVHUYH
and instructions, and training
It has been overseeing the compliance Bank of India.
initiatives, among others.

31
 Aapka Bhala, Sabki Bhalai.
Sulekha Haldar was disowned by her
husband at a very young age. Bereft
RIDQ\ƬQDQFLDORUHPRWLRQDOVXSSRUW
VKHZDVDWKHUZLWoVHQGLQ
0RUHRYHUVKHKDGWRIHHGKHU
ƬYHPHPEHUIDPLO\(YHU\GD\ZDVD
struggle for her and she was unsure
how to break the vicious circle of
poverty.
Her plight was noticed by some of her
friends who introduced her to
%DQGKDQWKHQDQ1%)&:LWKDORDQ
of mere `VKHEHJDQKHUƮRZHU
and agriculture business. It was hard
work, but her determination to rise
above her conditions pushed her. She
NQHZDOWKRXJKKHUMRXUQH\ZDVQoW
easy now she had a friend in Bandhan.
$VKHUEXVLQHVVSURJUHVVHG%DQGKDQ
guided her through myriad ways of
ƬQDQFHPDQDJHPHQW
,QZKHQ%DQGKDQWXUQHGLQWRD
Bank, she felt proud to be associated
ZLWKLW$IWHUDOOLWZDV%DQGKDQ
ZKLFKKDGKDQGKHOGKHUMRXUQH\RXW
of poverty. She declares to all and
sundry that loans from Bandhan
helped her to turn her life and
renovate her home.
Sulekha Haldar,
.ULVKQDQDJDU:HVW%HQJDO

32
 Corpo
ora
ate overvview
w

47

*RSD%KDWWDFKDUMHHUXQV0V-\RWVQD
)LOOLQJ6WDWLRQLQ$JDUWDOD7ULSXUD+HU
ƬUPLVDIXHORXWOHWRI,QGLDQ2LO
Corporation and has a current account
relationship with Bandhan Bank’s
$JDUWDOD%UDQFK

3RVWLQVWDOODWLRQRIDQ('&HOHFWURQLF
data capture) terminal at the fuel
station, she took it upon herself to
promote cashless transactions at her
‘petrol pump’.
Within a few weeks, increase in the
number of electronic transactions in
Jyotsna’s account was noticed at the
%DQN2QIXUWKHUDQDO\VLVLWZDV
revealed that most of the fuel
station’s customers were also
Bandhan Bank customers and used
Besides, soon she was delighted to
UHDOLVHWKDWKHUƬUPKDGVWDUWHG
VDYLQJVLJQLƬFDQWFRVWRQFDVK
handling and therefore, increased
SURƬWV6KHVWLOOWKDQNVWKHGD\VKH
opened her current account with
Bandhan Bank.
Gopa Bhattacharjee with her
the Bank’s debit or credit cards. KXVEDQGLQ$JDUWDOD7ULSXUD

33
 Aapka Bhala, Sabki Bhalai.

Risk governance architecture

Band dhan Ban nk ,17(*5$7('5,6.Ǖ
MANAGEMENT APPROACH
Risk Governance
Structure
conttinnues to We have a robust risk-management
streng gthen itts riskk architecture that not only meets all
regulatory and Basel guidelines, but
man nag gementt also inculcates a risk-awareness
archhittecture to drive FXOWXUH2XUULVNPDQDJHPHQW
practices involve informed decision-
its sttrategicc andd making, based on assessment and
busine ess grow wth. We supervision of risks.

are addre essinng the .H\(OHPHQWV Risk Strategy

riskss in
n a focuusssed DQG$SSHWLWH
man nner, thro oug gh
clear un ndersttannding Integrated
of vaarioous rissks,, Risk

disciipliined 0DQDJHPHQW
Risk
asseesssment and d 3ULQFLSOHV
and Culture
mea asu urement
proccedurres, and d
conttinnuous OUR APPROACH
mon nittoriing thatt • Risk management is integral to
develop a comprehensive view of
the risks faced.
protteccts the Ba ank’s sound business practices.

intere ests. • (ƪHFWLYHULVNPDQDJHPHQWOHDGVWR

• Integrated view of risks enables the
DVVHVVPHQWRIWKH%DQNoVHƯFDF\DW
informed decision-making within
managing them by identifying,
the organisation’s risk appetite.
assessing, measuring, and
monitoring the key risks that are
• Intend to adopt an integrated
proactively adhered to by the
risk-management approach to
business units.

RISK PRINCIPLE AND CULTURE

The principles of integrated risk PDLQWDLQLQJDQHƪHFWLYHULVN
PDQDJHPHQWDUH programme and following risk
based supervision. Risk
• Risk governance: The Board sets 0DQDJHPHQW&RPPLWWHHVIRUPHG
clear communications, a strong shall be responsible for overseeing
risk-focussed culture, and reward risk management on a regular basis
programmes that incorporate and reporting to the Board or the
ULVNUHODWHGREMHFWLYHVDQGOHDUQLQJ 5LVN0DQDJHPHQW&RPPLWWHHRI
programmes to promote an the Board.
integrated risk management.
• Risk ownership: Business units
• Risk infrastructure and will be responsible for the
oversight: Senior management performance of their business and
shall be primarily responsible for the management of risks within the
designing, implementing, and Bank’s risk framework.

34
 Corpo
ora
ate overvview
w

47

THREE LINES OF DEFENCE

PRINCIPLE:
BUSINESS Riskk In
nfo
ormatiion
,PSOHPHQWDWLRQ3LOODU
$W%DQGKDQ%DQNZHKDYHGHYHORSHG
Sharrinng Kiossk
a system for directing and controlling To keeep the
the risk management infrastructure of RISK MANAGEMENT
WKH%DQNEDVHGRQn7KUHH/LQHVRI ,GHQWLƬFDWLRQ0RQLWRULQJDQG man naggementt ab breast
Defence’ principle. These three &RQWURO3LOODU ecent
of re
principles serve as the founding pillars
on which the entire risk governance deveelo
opmentts in the
model of the Bank is built.
INTERNAL AUDIT ƬQDQ QFLDOZ
ZRUOGWK
KH
RISK CULTURE
The Bank encourages calculated
risk-taking, where risks are known,
and are within the limits arising from
the approved risk appetite. While
evaluating the risks, the associated
returns are also considered. The Bank
is constantly striving to develop a ‘risk-
aware culture’ among the employees
RIGLƪHUHQWEXVLQHVVOLQHV
RISK STRATEGY AND APPETITE
The Bank has a Board-approved risk
appetite architecture, including risk
appetite statements, at the enterprise
OHYHODVZHOODVIRUGLƪHUHQWULVNW\SHV
The risk appetite statements are
further broken down into measurable
metrics.
Risk Limits
5LVN3URƬOH
3HULRGLFGDVKERDUGVWRWKH%RDUGDQG
senior management showing the
quantum and the direction of the risk
IRUHDFKRIWKHTXDQWLƬDEOHPHWULFV
,QGHSHQGHQW$VVXUDQFH3LOODU 5LVN00DQDJHPHQWW
Deparrtment
publisshess a wee
eklly
newwslletter — The
The key constituents that R.I.S
S.K
K.
promote ‘risk-aware culture’ in the
%DQNDUH
• To encourage employees to take
• $GHTXDWHDQGUHJXODUWUDLQLQJRI
business decisions in line with the
personnel in business areas on their
Bank’s approved risk appetite.
roles in risk management.
• Treatment of whistle-blowers who
• Dissemination of information on a
report on fraudulent activities.
regular basis.
• Conduct towards employees who
report potential risks.
Risk
Capacity
Risk Derived from regulatory or Board
Appetite level limits
Statement
$UWLFXODWHGLQWHUPVRIDQFKRUVOLNH
capital, earning-impact and volatility,
reputation and best practices (Basel,
industry and so on)
Derived from limits prescribed in the respective
SROLFLHVWRWKHH[WHQWDSSOLFDEOHLQOLQHZLWKWKH
risk appetite statements and the strategy of the
business lines
35
 Aapka Bhala, Sabki Bhalai.

Risk governance architecture

The Ba ankk hass establlishe ed a
structu uraal appproach h to risk
govern nan nce, ensu urin
ng an n
HƪHFWLLYH HOOHYH
HORRIDOLJQP PHQ QW
betwe een n admin nisstra
ationn annd
manag gem mentt respo onsib bilityy
for riskk. The rissk govvern nancce
VWUXFWX XUHHKDVVFFOHDUO\\GHHƬQH HG
roles and d respponsib bilitie
es foor the
%RDUG55LVVN0
0DQDJH HPHQ QW
&RPP PLWWWHHV& &52FFRQWWURO
functioons and d the e acccouunta able
H[HFXWWLYHVV

*29(51$1&(6758&785(

PRINCIPAL CREDIT AND MARKET LIQUIDITY INTEREST OPERATIONAL RISK

RISKS CREDIT RISK RISK RATE RISK
CONCENTRATION IN
RISK BANKING
BOOK
Ǔ,55%%ǔ
Governance of %2$5'
Board
5LVN0DQDJHPHQW&RPPLWWHH $XGLW&RPPLWWHHRIWKH IT Strategy Committee of the
of the Board Board Board
Management 2SHUDWLRQDO
Credit Risk Information
commitee $VVHW/LDELOLW\0DQDJHPHQW Risk
0DQDJHPHQW Security
Committee 0DQDJHPHQW
Committee Committee
Committee
3URGXFWDQG&KDQJH
+HDG2ƯFH/HYHO 0DQDJHPHQW2XWVRXUFLQJ
Investment Committee
Credit Committee Business Continuity
Committee
Key Policies 5LVN$SSHWLWH)UDPHZRUN
and Guidelines
,QWHJUDWHG5LVN0DQDJHPHQW3ROLF\
2SHUDWLRQDO5LVN
0DUNHW5LVN0DQDJHPHQW3ROLF\
Credit Risk 0DQDJHPHQW3ROLF\
$VVHW/LDELOLW\0DQDJHPHQW3ROLF\
0DQDJHPHQW3ROLF\ Business Continuity
&RXQWHUSDUW\5LVN0DQDJHPHQW3ROLF\
0DQDJHPHQW3ROLF\

36
 Corpo
ora
ate overvview
w

47

PRINCIPAL RISKS

CAPITAL

Credit PILLAR I RISKS Market

Strategic

Operational

Reputation Business
PILLAR II RISKS
7KHIROORZLQJ3LOODU,DQG3LOODU,,ULVNV
DUHPRQLWRUHG

• The Bank is adequately

capitalised in normal as well as
stressed scenarios. IRRBB Liquidity

• Credit Risk is monitored in terms

RIFRQFHQWUDWLRQULVNFRPSOH[LW\
RIH[SRVXUHUHFRYHU\ULVNDQG Concentration
default risk.
• 2SHUDWLRQDOULVNLVPHDVXUHGLQ
• 0DUNHW5LVNLVPRQLWRUHGLQWHUPV terms of process risk, people risk,
of investment risk, equity price FRPSOLDQFHULVNH[WHUQDOULVNDQG
ULVNIRUHLJQH[FKDQJHULVNDQG IT risk.
interest rate risk.
• $PRQJ3LOODU,,5LVNVLQDGGLWLRQ
• /LTXLGLW\ULVNLVPHDVXUHGLQWHUPV to interest rate risk in banking
of structural liquidity risk, stress book and credit concentration
liquidity risk, funding risk, the Bank also monitors
concentration risk and market reputation risk, strategic risk and
liquidity risk. business risk.

37
 Aapka Bhala, Sabki Bhalai.

Community aspirations
We are integrating our business
operations with our social
responsibilities to bring about holistic
transformation of marginalised
FRPPXQLWLHV2XUHQGHDYRXULVWR
broaden our scope of services and
minimise areas of income leakage in
SRRUIDPLOLHV2XUGHYHORSPHQW
programmes widen the realms of
education, health, livelihood
promotion, market linkage, enterprise
development, employment
generation, renewable energy and
ƬQDQFLDOOLWHUDF\
Our major CSR initiatives comprise:
TARGETING THE HARDCORE
3225Ǔ7+3ǔ352*5$00(
7KLVLQLWLDWLYHRƪHUVDQLQWHJUDWHG
GHJUHHDVVLVWDQFHWRWKHSRRUHVW
VWUDWDRIVRFLHW\$SDUWIURPSURYLGLQJ
IUHHDVVHWVZHFRXQVHODQGH[WHQG
VXSSRUWWRVHOHFWHGEHQHƬFLDULHV7KH
SURJUDPPHHQDEOHVWKHEHQHƬFLDULHV
to generate income, using the asset
provided and elevate themselves to
PDLQVWUHDPVRFLHW\LQDPRQWK
period.

:HWUDLQWKHEHQHƬFLDULHVWRDFKLHYH
basic literacy whereby they learn to groups and facilitating in availing of
352*5$00(+,*+/,*+76ǟ
write numbers, sign their names and ORDQVIURPƬQDQFLDOLQVWLWXWLRQVIRU
MARCH 2017
FRXQW%HVLGHVZHSURPRWHƬQDQFLDO EXVLQHVVH[SDQVLRQ%HVLGHVZHKHOS
literacy, which includes providing EHQHƬFLDULHVDFFHVVPDLQVWUHDP
Commencement
EDVLFƬQDQFLDONQRZOHGJHWRWKHSRRU HQWLWOHPHQWVIRUGLƪHUHQWNLQGRI
2006 facilitating accounts opening; schemes in the sphere of education,
identifying best applicable insurance health, immunisation, sanitation,
States services; connecting with self-help housing and other pensions.
9
Districts
35
Villages
3,815
6WDƪ
616 $W%
%DQQGKDQ% %DQ QNZH
Households
makke sincere e an nd
53,957 QHVWH
HDUQ HƪRUUWVWWR
bring about lasttin ng
channge in
n the e
com
mmunitiess in n
ZKLFFKZ
ZHVHUUYH H2
2XU
deveelo
opmentt
proggrammes arre
mannagged by no ot-ffor-
SURƬƬWH
HQWLWW\
Banddhan-Kon nna agar.

38
 Corpo
ora
ate overvview
w

47

BANDHAN EDUCATION
352*5$00(Ǔ%(3ǔ
2XUVFKRROVHQFRXUDJHDGLYHUVHDJH
DUHVWXG\LQJLQRXU 352*5$00(+,*+/,*+76ǟ
group of underprivileged children to
non-formal schools. However, through MARCH 2017
start formal education. We have
RXUDFDGHP\VHWXSLQZHKDYH
DGRSWHGDQH[FOXVLYHORZFRVWDQG
taken a step forward to inculcate
innovative model to ensure that Commencement
formal schooling. Currently, there are
underprivileged children receive
TXDOLW\HGXFDWLRQ%(3FRPPHQFHG
DFDGHPLHVLQ:HVW%HQJDO 2008
ZLWKQRQIRUPDOVFKRROLQJLQ
States
ZLWKFKLOGUHQRIZKLFK
have been mainstreamed into 5
government secondary schools and
Villages
1,709
6WDƪ
558
Schools
2,800
Students
87,020

$W%
%DQG GKDQZZH
focuus on educattioon
and deevelopm ment
of marginnalissed
d
child
dren.

39
 Aapka Bhala, Sabki Bhalai.

Community aspirations
352*5$00(+,*+/,*+76ǟ %$1'+$1+($/7+352*5$00(Ǔ%+3ǔ
MARCH 2017
Through this programme, we provide conduct free health check-ups, and
opportunity to underprivileged eye and polio camps. Besides, we
Commencement
women by training them to work as established rural health clinics to help
2007 health volunteers. They are popularly enhance healthcare facilities for
called Swastha Sohayikas. We impart villagers and reduce health
States health education through health H[SHQGLWXUHRIXQGHUSULYLOHJHG
7 forums and home visits. families.

The volunteers distribute health kits Safe water and sanitation facilities
Districts
at doorsteps and provide linkage or have always been a concern for
47 UHIHUUDOVHUYLFHV0RUHRYHUZH disadvantaged sections of society.
Bandhan has been bringing about
Villages behavioural changes by helping them
5,016 WRDFFHVVƬQDQFHIRUZDWHUDQG
VDQLWDWLRQIDFLOLWLHV7LOO0DUFK
IDPLOLHVZHUHSURYLGHGZLWK
6WDƪ
water and sanitation facilities in
520 various states, such as West Bengal,
%LKDU$VVDP-KDUNKDQGDQG2GLVKD
Health among others.
Volunteers
5,430
Households
We are fo ocussse
ed on
10,12,668 ead
spre dingg healtth
awareeness am mong
wommen and
352*5$00(+,*+/,*+76ǟ adollesscent girlss.
MARCH 2017
Commencement RENEWABLE ENERGY
2014 352*5$00(Ǔ5(3ǔ
$W%DQGKDQ%DQNRXUHQGHDYRXULVWR sustainable environment. To provide
States FRQVHUYHHQHUJ\2XUREMHFWLYHLVWR eco-friendly electricity at low costs
5 harness renewable energy for a without harming the environment, we
are promoting renewable energy
through solar lamps and lanterns.
Districts
These lights improve health condition
45 DQGVXSSRUWH[WHQGHGKRXUVRI
livelihood, while encouraging the use
Villages of solar power.
446 Through various development
initiatives, Bandhan-Konnagar is
6WDƪ targeting the upliftment of
558 PDUJLQDOLVHGFRPPXQLWLHV0RUHRYHU
ZHKDYHEHJXQD)LQDQFLDO/LWHUDF\
3URJUDPPHLQ$XJXVWWRLPSDUW
%HQHƬFLDULHV
ƬQDQFLDONQRZOHGJHDPRQJUXUDO
59,970 ZRPHQ:HIXUWKHUDLPWRH[SDQGRXU
activities to serve the underserved
sections of society.

40
 Corpo
ora
ate overvview
w

47

EMPLOYING THE UNEMPLOYED 352*5$00(+,*+/,*+76ǟ

352*5$00(Ǔ(83ǔ MARCH 2017
We help generate employment
opportunities through our own Commencement
vocational centre — Bandhan Skill
Development Centres across the
2009
country.
States
We train unemployed youth in various 4
domains, including customer
relationship and sales, hospitality, Districts
information technology,
computerised accounting, and
24
refrigerator and air conditioner
Villages
UHSDLULQJDPRQJRWKHUV$IWHU
graduating from these courses, the 102
SDUWLFLSDQWVƬQGHPSOR\PHQWZLWK
reputed organisations or become 6WDƪ
self-employed.
58
BSDC
11
%HQHƬFLDULHV
13,101

business model and

customer segment
serviced by the Bank,
desirous of working individuals graduating
with Bandhan Bank. It is from this course will be
a one-year, full-time suitably trained in the
residential course, various functions of
Bandhan NextGen which is conducted at EDQNLQJ2XUEDQNLV
Banker’s Programme the Bandhan School of committed to
7KH%DQGKDQ1H[W*HQ Development developing and
%DQNHUoV3URJUDPPH 0DQDJHPHQW%6'0 propagating a strong
was launched in January Kolkata. Given the sense of teamwork,
,WLVDLPHGDW XQLTXHPLFURƬQDQFH discipline and ethics
training fresh graduates turned-universal-bank in its workforce.
41
 Aapka Bhala, Sabki Bhalai.

%RDUGSURƬOH
Dr. Lahiri served as the Chief Economic Adviser to the
Ministry of Finance, Government of India, between 1996
and 1997. He has been a member of several committees
set up by the Government and Reserve Bank of India for
DGYLVLQJRQLVVXHVOLNHƬVFDOUHVSRQVLELOLW\OHJLVODWLRQ
ways and means advances from the central bank to the
VWDWHVDQGƮRRUSULFHRIVWHHO

Dr. Ashok Kumar Lahiri

Chairman

Mr. Bhaskar Sen

Director
0U6HQVWDUWHGKLVFDUHHUDVD
3UREDWLRQDU\2ƯFHUZLWK8QLRQ%DQN
RI,QGLDLQDQGUHWLUHGDV
&KDLUPDQDQG0DQDJLQJ'LUHFWRU Mr. Boggarapu Sambamurthy
&0'RI8QLWHG%DQNRI,QGLD+HZDV
instrumental in establishing a full-
ƮHGJHGWUHDVXU\RSHUDWLRQIRUWKH
%DQN%HIRUHWDNLQJRYHUDV&0'RI
8QLWHG%DQNRI,QGLDKHKDGZRUNHGDV
DQ([HFXWLYH'LUHFWRUDW'HQD%DQNLQ
0XPEDL
Director
0U6DPEDPXUWK\LVD&KDUWHUHG
$FFRXQWDQWZKRVWDUWHGKLVFDUHHU
ZLWK6\QGLFDWH%DQNLQ+HZDV
DQ([HFXWLYH'LUHFWRUDW,QGLDQ%DQN
IURPDQGUHWLUHGDV&KDLUPDQ
Mr. Chintaman Mahadeo Dixit
Director
0U'L[LWLVD6HQLRU3DUWQHUDW*'$SWH
& Co. He has nearly four decades of
H[SHULHQFHLQWKHEDQNLQJVHFWRU
Throughout his career, he has been
Ms. Georgina Elizabeth Baker
Nominee Director (IFC)
0V*HRUJLQD%DNHULVWKH'LUHFWRURI
Trade and Supply Chain for
International Finance Corporation (IFC).
She is responsible for IFC’s suite of
WUDGHDQGVXSSO\FKDLQƬQDQFH
products, starting with the Global
DQG0DQDJLQJ'LUHFWRU&0'RI
&RUSRUDWLRQ%DQNLQDIWHUD
WKUHH\HDUVWLQW8QWLOUHFHQWO\KHZDV
the Director of Institute for
Development and Research in Banking
Technology (IDRBT).
Dr. Holger Dirk Michaelis
Nominee Director (Caladium)
'U0LFKDHOLVDQHFRQRPLVWLVFXUUHQWO\
D6HQLRU9LFH3UHVLGHQWDW*,&3ULYDWH
associated with public-sector
undertakings, public and private
FRPSDQLHV/LIH,QVXUDQFH&RUSRUDWLRQ
RI,QGLDEDQNVQRQEDQNLQJƬQDQFH
FRPSDQLHVDQGFRRSHUDWLYHEDQNV$
fellow member of the Institute of
&KDUWHUHG$FFRXQWDQWVRI,QGLD0U
'L[LWVXSHUYLVHGWKHƬUVWWDNHRYHURIDQ
urban co-operative bank by a public-
sector bank in India.
3URI.ULVKQDPXUWK\9HQNDWD
Subramanian
7UDGH)LQDQFH3URJUDPPHZKLFKLVWKH
,)&ƮDJVKLSWUDGHSURJUDPPH0V
%DNHULVMRLQWO\UHVSRQVLEOHZLWK0U
3LHUUH*XLVODLQIRU,)&oVHQJDJHPHQWLQ
)UDJLOHDQG&RQƮLFW$ƪHFWHG6WDWHV
42
(TXLW\DQG,QIUDVWUXFWXUH3( ,
6LQJDSRUH+HMRLQHG*,&LQDIWHU
a successful career at the Boston
Consulting Group in Germany and
&KLQD$VDPHPEHURIWKH3RUWIROLR
Strategy, and Risk groups, he is
responsible for the strategy
formulation and planning for
*,&3( ,
Director
3URI6XEUDPDQLDQLVDQ$VVRFLDWH
3URIHVVRURI)LQDQFHDW,QGLDQ6FKRRO
RI%XVLQHVV+\GHUDEDGZLWKH[SHUWLVH
in banking and economic policy.
+LVVHUYLFHRQWKHH[SHUWFRPPLWWHHRQ
governance of banks for the Reserve
Bank of India (RBI) has established him
as one of the architects of banking
reforms in India.
 Corporate overview

01-47

Mr. Ghosh holds a Masters degree in Statistics and is a Senior Ashoka

Fellow. He established Bandhan as an NGO in 2001. Besides being the
Founder, MD and CEO of Bandhan Bank, Mr. Ghosh has been
associated with a number of esteemed organisations, such as Indian
Banks’ Association, National Executive Committee of Federation of
,QGLDQ&KDPEHUVRI&RPPHUFHDQG,QGXVWU\),&&,8.,QGLD)LQDQFLDO
3DUWQHUVKLS&RPPLWWHHDQGWKH060(&RPPLWWHHRIWKH
Government of West Bengal, among others.

Mr. Chandra Shekhar Ghosh

Founder, MD and CEO

Mr. Sisir Kumar Chakrabarti

Mr. Pradip Kumar Saha
Director
0U6DKDUHWLUHGIURP6PDOO,QGXVWULHV
Development Bank of India (SIDBI) as a
&KLHI*HQHUDO0DQDJHULQ'HFHPEHU
+HKDVRYHU\HDUVRI
H[SHULHQFHLQGHYHORSPHQWDOEDQNLQJ
He was instrumental in the designing
and implementation of corporate debt
UHVWUXFWXULQJSDFNDJHIRUPLFURƬQDQFH
HQWLWLHV0U6DKDKDGDOVRGULYHQWKH
DJHQGDRIUHVSRQVLEOHƬQDQFHIURP
SIDBI by assessing Code of Conduct
through third parties, and harmonising
WHQGHULQLWLDWLYHVWRZDUGV0LFUR
Mr. Ranodeb Roy
Director
0U5DQRGHE5R\LVWKHFRIRXQGHUDQG
&(2RI59&DSLWDO0DQDJHPHQW3ULYDWH
/WGDQDVVHWPDQDJHPHQWFRPSDQ\
based in Singapore that he founded in
1RYHPEHU+HZDVDOVRD
member of the Board of Directors of
0DNHP\WULS,QF+HMRLQHG0RUJDQ
6WDQOH\$VLD/WGLQ0DUFKDQG
ZDVUHVSRQVLEOHIRUWKH)L[HG,QFRPH
GLYLVLRQ0U5R\KDVDOVRZRUNHGLQ
0HUULOO/\QFK+RQJ.RQJDV0DQDJLQJ
'LUHFWRU&R+HDGRI)L[HG,QFRPH
Currency and Commodities (FICC)
JURXSLQUHVSRQVLEOHIRU),&&
Director
$IWHUEHLQJDVVRFLDWHGZLWK$[LV%DQN
/WGIRU\HDUV0U&KDNUDEDUWL
UHWLUHGDV'HSXW\0DQDJLQJ'LUHFWRURI
WKH%DQNLQ'XULQJWKLVSHULRG
he served as a member of the
&RPPLWWHHRI'LUHFWRUVWKH$XGLW
Committee, as well as the Chairman of
$[LV6DOHVDQG6HFXULWLHV/WG+H
started his career at State Bank of
Bikaner and Jaipur and remained with
WKH6WDWH%DQNDVVRFLDWHIRU\HDUV
)LQDQFH,QVWLWXWLRQV0),V EXVLQHVVDFURVV$VLD

Mr. Snehomoy Bhattacharya

Ms. T S Raji Gain
Director
Director
0U%KDWWDFKDU\DEHJDQKLVFDUHHUDW
0V*DLQKDVZRUNHGLQYDULRXV
State Bank of Bikaner and Jaipur. He
FDSDFLWLHVDW1DWLRQDO%DQNIRU
has over three decades of banking
$JULFXOWXUHDQG5XUDO'HYHORSPHQW
H[SHULHQFHLQSXEOLFDQGSULYDWH
1$%$5'WKHDSH[LQVWLWXWLRQLQWKH
sectors. His last stint was as the
ƬHOGRIUXUDODQGDJULFXOWXUDOEDQNLQJ
([HFXWLYH'LUHFWRU&RUSRUDWH$ƪDLUV
Currently, she is the Chief General
RI$[LV%DQN/WGIURPWR
0DQDJHURIWKH)DUP6HFWRU
(DUOLHUKHZDVKHDGLQJWKH+5GLYLVLRQ
'HYHORSPHQW'HSDUWPHQWRI1$%$5'
RI$[LV%DQNZKHUHKHRYHUVDZD
0XPEDL
IROGLQFUHDVHLQWKHQHZSULYDWH
bank’s employee strength.

43
 Aapka Bhala, Sabki Bhalai.

Leadership team

Rahul Johri Mahendra Mohan Gupta

Head - Retail Banking Head - Legal

Sunil Samdani Biswajit Das

Chief Financial Officer Chief Risk Officer

Santanu Banerjee Arvind Kanagasabai

Head - Human Resources Head - Treasury

Vijaykumar Ramakrishna Sourav Kar

Chief Information Officer Chief Compliance Officer

Subhro Kumar Gupta Indranil Banerjee

Chief Audit Executive Company Secretary

Nand Kumar Singh

Head - Banking Operations &
Customer Services

44
 Corpo
ora
ate overvview
w

47
$ZDUGVDQGUHFRJQLWLRQ

n,1',$12)7+(<($5o$:$5'%<&11ǟ1(:6
0U&KDQGUD6KHNKDU*KRVK)RXQGHU0' &(2%DQGKDQ
%DQNUHFHLYHGWKH&111HZV,QGLDQRIWKH<HDU$ZDUG
LQWKHFDWHJRU\n%XVLQHVVoIRUWRXFKLQJWKHOLYHVRI
millions of borrowers from low-income groups, including
ZRPHQHQWUHSUHQHXUVDQGVPDOOEXVLQHVVHV6KUL$UXQ-DLWOH\
8QLRQ0LQLVWHUIRU)LQDQFH&RUSRUDWH$ƪDLUVDQG,QIRUPDWLRQ
& Broadcasting, Government of India, handed over this
SUHVWLJLRXVDZDUGWR0U*KRVKRQ-XQHLQ'HOKL

FE INDIA’S BEST BANKS AWARDS

%DQGKDQ%DQNUHFHLYHGWKHn6SHFLDO,QLWLDWLYH$ZDUGoIRU
WKH\HDUDVSDUWRI)(,1',$o6%HVW%DQNV$ZDUGV
The said award has been given by a national business daily
)LQDQFLDO([SUHVV6KUL$UXQ-DLOWH\+RQoEOH0LQLVWHURI
)LQDQFHDQG&RUSRUDWH$ƪDLUV*RYHUQPHQWRI,QGLD
KDQGHGRYHUDZDUGWR0U*KRVKDWDFHUHPRQ\KHOGLQ
0XPEDLRQ6HSWHPEHU

BIHAR MITRA AWARD

%DQGKDQ%DQNUHFHLYHGWKH%LKDU0LWUD$ZDUGIRU%DQNLQJ
)LQDQFHRQ%LKDU'LYDV)RXQGDWLRQ'D\LQ0XPEDLRQ
0DUFK7KLVLVIRUWKHKLJKHVWFUHGLWGHSRVLWUDWLR
among banks operation in Bihar.

45
 Aapka Bhala, Sabki Bhalai.

)LUVW$QQLYHUVDU\RI
Bandhan Bank

6WDQGLQJIURPOHIWWRULJKW6KUL169LVKZDQDWKDQ'HSXW\
*RYHUQRU5HVHUYH%DQNRI,QGLD6KUL.HVKDUL1DWK7ULSDWKL
+RQoEOH*RYHUQRURI:HVW%HQJDO6KUL3UDQDE0XNKHUMHH
+RQoEOH3UHVLGHQWRI,QGLD6KUL&KDQGUD6KHNKDU*KRVK
)RXQGHU0' &(2%DQGKDQ%DQNDQG'U$VKRN.XPDU
/DKLUL&KDLUPDQ%DQGKDQ%DQN

46
Corpo
ora
ate overvview
w

47

47
 Aapka Bhala, Sabki Bhalai.

Board’s Rep
portt

To
The Members,

Your Directors take great pleasure in presenting the Third Annual Report of your Bank’s business
and operations together with the audited accounts for the year ended March 31, 2017.

Table 1. Summary of Financial Performance

(` in crore)
For the year ended
Particulars
March 31, 2017 March 31, 2016
Deposits: 23,228.66 12,088.75
- Savings Bank Deposits 5,384.72 2,371.05
- Current Account Deposits 1,452.62 234.55
Advances: 16,839.08 12,437.55
- Cash credits, overdrafts and loans repayable on demand 344.48 84.60
- Term loans 16,494.60 12,352.95
Total Assets/Liabilities 30,236. 09 19,756.50
Net Interest Income 2,403.50 932.84
Other Income: 411.41 149.89
- Fee Income 320.41 145.42
- Misc. Income 91.00 4.47
Operating Expenses (excluding depreciation) 955.15 580.14
3URƬWEHIRUH'HSUHFLDWLRQ3URYLVLRQVDQG7D[ 1,859.76 502.59
Depreciation 66.86 35.78
Provision for Tax 592.52 138.26
2WKHU3URYLVLRQV>,QFOXGH:ULWHRƪVRI` 31.19 Crore] 88.43 53.30
1HW3URƬW 1,111.95 275.25
%DODQFHLQ3URƬW /RVV$FFRXQWEURXJKWIRUZDUGIURP 215.38 0.58
SUHYLRXV\HDU
Appropriations:
Transfer to Statutory Reserve 277.99 68.96
Transfer to Investment Reserve - -
Transfer to Capital Reserve 0.91 -
Transfer to/(from) Reserve Fund - -
Proposed Dividend - -
6XUSOXVFDUULHGRYHUWR%DODQFH6KHHW 1,048.43 206.87
EPS (Basic & Diluted) 10.15 3.40

Performance of the Bank
The Bank commenced its banking
EXVLQHVVZLWKHƪHFWIURP$XJXVW
2015, with 501 branches on a pan-
India basis and on March 31, 2017, its
network consisted of 840 branches
spread across metro, urban, semi-
urban and rural areas. Out of the total
840 branches, 32.62 per cent
branches are in rural areas
demonstrating your Bank’s
FRPPLWPHQWWRƬQDQFLDOLQFOXVLRQ
The number of Doorstep Service
Centres (DSCs) increased from 2,022
to 2,443 between March 31, 2016 and
March 31, 2017. With the expanding
network of branches and DSCs, the number of customers
grew by over a quarter during 2016-17, with a
corresponding growth in total deposits of 92 per cent to
` 23,228.66 crore, of which ` 6837.34 crore or 29.43
per cent was Current Account and Savings Account (CASA).
Your Bank, while providing service to customers and
ZRUNLQJRQƬQDQFLDOLQFOXVLRQDOVRHQKDQFHGVKDUHKROGHUVo
value by posting an increase of 149.54 per cent in total
income to `FURUHLQ7KHSURƬWDIWHUWD[
of ` 1,111.95 crore in 2016-17, after provisions of ` 680.95
crore, implies an increase in Return on Equity (ROE) from 16
per cent to 28.51 per cent, in Return on Assets (ROA) from
3.08 per cent to 4.47 per cent, basic earnings per share
(EPS) from ` 3.40 to ` 10.15, and diluted earnings per share
from ` 3.40 to ` 10.15 between 2015-16 and 2016-17.

48

The Net Interest Margin (NIM) went down from 11.04 per
cent in the previous year to 10.44 per cent in 2016-17.
Priority Sector Lending (PSL), or lending to critical players
of the economy such as small and marginal farmers, and
micro-enterprises, continued to be the core strength of
your Bank, and PSL went up from ` 12,268.81 crore on
March 31, 2016 to ` 16,456.64 crore on March 31, 2017.
At the end of 2016-17, as a proportion of the net advances
of ` 16,864.17 crore, PSL at 97.58 per cent was marginally
lower than 98.58 per cent at the end of 2015-16, but still
well above the regulatory requirement of 40 per cent.
Your Bank introduced a new product — Small Enterprises
Loan (SEL). SEL is a loan between ` 1 lakh and ` 10 lakh,
without collateral, given for income generating activities
of small enterprises. Small Enterprises are those
enterprises whose investment in plant and machinery or
equipment does not exceed ` 25 lakh for manufacturing
enterprise and service enterprises, respectively. Given for
working capital requirement, assets creation for business,
and other short term business requirements, total SEL
advances stood at ` 1,054.48 crore on March 31, 2017. A
modest beginning, but with the potential of scaling up.
Your Bank also introduced Gold Loan product, Bank
Guarantee Module of Trade Finance, Next Gen Yuva–Loan
for Unemployed Youth to do 1 Year Residential Next Gen
Yuva Programme in Banking.
Statuttorry repo
ortts
81
Women
entrepreneurs
are Bandhan’s
primary
benefactors
The nummber of Doo orsste
ep Service
Centress (D
DSCs) in
ncrrea
aseed from
2,022 to 2,4443 betwween n March
31, 2016 annd March h 31, 2017.
7KHZLWKGUDZDORIOHJDOWHQGHUVWDWXVRIVSHFLƬHGEDQN
notes (SBN), namely denominations of ` 500 and ` 1,000
already issued, on November 08, 2016 tested the
operational abilities of all banks in India, including yours.
Your Bank stepped into the implementation of exchange
of SBN for other currency notes, which were scarce for
several weeks, by not only its own customers but also
others, and acquitted itself creditably. It also provided all
its support to its customers to depositing SBN into their
accounts within the parameters set by the regulators.
Dividend
Considering that it is desirable to plough back the income
for generating growth of business in the initial few years,
the Board does not recommend any dividend for 2016-17.
Since the Bank has not declared any dividend since its
incorporation, in terms of Section 125 of the Companies
Act, 2013 there is no unclaimed dividend relating to the
ƬQDQFLDO\HDUZKLFKUHTXLUHVWREHWUDQVIHUUHGWR
the Investors Education and Protection Fund as per
statutory requirement.
49
 Aapka Bhala, Sabki Bhalai.
Board of Directors
The composition of the Board of Directors of the Bank
(“Board”) is governed by the provisions of the Companies
Act, 2013 and the Banking Regulation Act, 1949. Board of
your Bank consists of thirteen directors, of whom nine, an
overwhelming majority, are Independent Directors. Of the
remaining four, one Nominee Director (Non-executive)
each is from International Financial Corporation and
Caladium Investment Pte Ltd., one is a Non-executive &
Non-Independent Additional Director, and one Managing
Director and CEO.
Dr. Ashok Kumar Lahiri is the Non-executive Chairman of
the Bank and Shri Chandra Shekhar Ghosh is the Managing
Director & CEO. Other than Shri Ghosh, all Directors on the
Board are non-executive.
The composition of the Board and attendance of the members at the meetings follow:
Table 2. Board of Directors and Attendance at Meetings
Name of Director
Dr. Ashok Kumar Lahiri, Chairman
Shri Chandra Shekhar Ghosh, MD & CEO
Shri Bhaskar Sen
Shri Boggarapu Sambamurthy
Shri Chintaman Mahadeo Dixit
Sm. Gerogina Elizabeth Baker
Dr. Holger Dirk Michaelis
Prof. Krishnamurthy Venkata Subramanian
Shri Pradip Kumar Saha
Shri Ranodeb Roy
Shri Sisir Kumar Chakrabarti
Shri Snehomoy Bhattacharya
Sm. T. S. Raji Gain
1
6P*HRUJLQD(%DNHUZDVDSSRLQWHGZLWKHƪHFWIURP-XO\
2
6KUL5DQRGHE5R\ZDVDSSRLQWHGZLWKHƪHFWIURP-XO\
Selection and appointment of Directors
The appointment of Directors is guided by the provisions
of the Companies Act, 2013 and the Banking Regulation
Act, 1949 and the guidelines issued by the RBI in this
regard. While appointing a Director on its Board, your Bank
IROORZVWKHGLUHFWLRQRI5%,ZLWKUHJDUGWRnƬWDQGSURSHUo
criteria as applicable to private sector banks, signing of
deed of covenants which includes the requirement for
Directors to discharge their duties and responsibilities to
the best of their abilities, individually and collectively, in
order to be eligible to be appointed as Directors of the
Bank. Every year, the declarations given by the Directors
are reviewed by the Nomination & Remuneration
Committee of the Board (NRC) and sent with the NRC’s
recommendations to the Board for its review and noting.
50
Shri Ranodeb Roy [DIN: 00328764] was appointed as
Non-executive Director of the Bank, liable to retire by
URWDWLRQZLWKHƪHFWIURP-XO\VXEMHFWWRWKH
approval of the Shareholders of the Bank at the 3rd Annual
General Meeting of the Bank. The ordinary resolution in
respect of this appointment has been included in the
Notice convening the 3rd Annual General Meeting of the
%DQN7KHQRWLFHDOVRFRQWDLQVDEULHISURƬOHRI6KUL
Ranodeb Roy as an annexure.
Sm. Georgina Elizabeth Baker [DIN: 06601316] was
appointed as Nominee Director of the Bank, not liable to
UHWLUHE\URWDWLRQZLWKHƪHFWIURP-XO\
Apart from the above, no other Director was appointed or
resigned during the year under review.
Number of Board
Attendance at AGM on
Meetings Attended
June 20, 2016
(total 8 meetings)
8 Present
8 Present
8 Present
7 No
7 Present
3 N.A.
6 No
6 No
7 Present
5 N.A.
6 No
6 No
8 Present
Declaration from Independent Directors
All the Independent Directors of your Bank have given
their respective declarations stating that they meet the
criteria of independence as laid down under Section 149(6)
and (7) of the Companies Act, 2013. In the opinion of the
Board, the Independent Directors meet the requirements
of Section 149 of the Companies Act, 2013.
Key Managerial Personnel
Shri Chandra Shekhar Ghosh, Shri Sunil Samdani and Shri
Indranil Banerjee, continue to be the Managing Director &
&(2&KLHI)LQDQFLDO2ƯFHUDQG&RPSDQ\6HFUHWDU\
respectively. These three personnel are statutorily
required under Section 203 of the Companies Act, 2013.
 Statuttorry rep
porrtss

81

Board Evaluation The Auudiit Com

The NRC, and subsequently the Board, have approved
“Performance Evaluation Policy for the Board, Non-
independent/ Whole Time Directors and Independent
Directors.” A questionnaire for the evaluation of the Board
and its Committees, and of individual Directors, covering
various aspects of their respective performance, including
quality, roles, responsibilities, process, functioning,
adherence to the code of conduct, and best practices, was
sent out to the Directors. The responses were discussed
and reviewed at a meeting of the Independent Directors,
where an individual Director being evaluated recused
himself/herself. The NRC, after taking into account this
review by the Independent Directors, also examined the
performance of the all the Directors. Board evaluation has
provided some valuable inputs for underscoring the
optimal role and responsibilities of the Board and its
Committees, for their functioning, and streamlining and
LPSURYLQJWKHTXDOLW\TXDQWLW\DQGWLPHOLQHVVRIƮRZRI
information between Bank Management and the Board to
HƪHFWLYHO\DQGUHDVRQDEO\SHUIRUPLWVGXWLHV
Board meetings
There were eight meetings of the Board during 2016-17 in
FDOHQGDURQ$SULO0D\-XQH-XO\
6HSWHPEHUDQG1RYHPEHUDQGLQRQ-DQXDU\
19 and February 22 functioning.
Board Committees
The Board has constituted the following committees to
RYHUVHHVSHFLƬFDUHDV
• Audit Committee
• Nomination & Remuneration Committee
• Risk Management Committee
• Information Technology Strategy Committee
• Customer Service Committee
• Corporate Social Responsibility Committee
• Special Committee for Monitoring High Value Fraud
Audit Committee
The Audit Committee provides direction to the audit
function, and monitors the quality of internal and statutory
DXGLW,WVUHVSRQVLELOLWLHVLQFOXGHH[DPLQLQJWKHƬQDQFLDO
statements and auditors’ report and overseeing the
ƬQDQFLDOUHSRUWLQJSURFHVVWRHQVXUHIDLUQHVVVXƯFLHQF\
DQGFUHGLELOLW\RIƬQDQFLDOVWDWHPHQWVUHFRPPHQGLQJ
appointment, terms of appointment and removal of
statutory auditors, and reviewing and monitoring, jointly
with Management, the internal audit of the Bank.
On March 31, 2017, the Audit Committee comprised of
four Independent Directors and was chaired by Shri
Chintaman Mahadeo Dixit. During 2016-17, the Committee
PHWVHYHQWLPHVRQ$SULO0D\-XO\6HSWHPEHU
DQG1RYHPEHULQDQGRQ-DQXDU\DQG
March 13 in 2017.
mmittte ee pro ovides
directio
on to the audit fun nction,
and monittors the e quallity of
interna
al and sttattutory au udit.
The composition of the Committee and attendance of the
members at the meetings follow:
Table 3. Audit Committee of the Board and
Attendance at Meetings
Number of meetings
attended by the
Name of Member
members out of the
total meeting of 7
Shri Chintaman Mahadeo Dixit, 6
Chairman
Shri Bhaskar Sen 7
Shri Sisir Kumar Chakrabarti 5
Shri Pradip Kumar Saha (Note 1) 1
Note : 1. Shri Pradip Kumar Saha was appointed as member of the
&RPPLWWHHZLWKHƪHFWIURP-DQXDU\
Nomination & Remuneration Committee
&ULWHULDIRU'LUHFWRUVo$SSRLQWPHQW
The NRC evaluates the composition of the Board and
UHFRPPHQGVKRZWRƬOOXSYDFDQFLHVDULVLQJLQWKH%RDUG
from time to time. While recommending candidature of a
Director, it considers the special knowledge or expertise
SRVVHVVHGE\WKHFDQGLGDWHDVVSHFLƬHGXQGHUWKH%DQNLQJ
Regulation Act, 1949.
The Committee also evaluates prospective candidates for
the position of a Director from the perspective of the
criteria for independence prescribed under the Companies
$FW)RUDQRQH[HFXWLYH'LUHFWRUWREHFODVVLƬHGDV
independent, he/she must sign a declaration of
independence. The Committee reviews the same and
determines the independence of a Director.
5HPXQHUDWLRQSROLF\
RBI vide its circular DBOD No. BC. 72/29.67.001/2011-12
GDWHG-DQXDU\KDVLVVXHGJXLGHOLQHVRQ
“Compensation of Whole-time Directors/Chief Executive
2ƯFHUV5LVNWDNHUVDQG&RQWUROIXQFWLRQVWDƪHWFqIRU
implementation by private sector banks and foreign banks
IURPWKHƬQDQFLDO\HDU7KH%DQNoV&RPSHQVDWLRQ
Policy, adopted in March, 2016, is in line with the RBI circular
and also in compliance with the requirements of the
Remuneration Policy as prescribed under
Companies Act, 2013.

51
 Aapka Bhala, Sabki Bhalai.

The fun nctioons off th

he Custom mer Risk Management Committee
The Risk Management Committee has been formed as per
Servicee Co ommitttee e of the e Booard, guidelines of RBI on Risk Management Systems. The
constittuteed purssua ant to RBI functions of the Committee are to review the Bank’s risk
management policies pertaining to credit, market,
circularrs/g
guid delin
nes, in nclu
ude liquidity, operational, outsourcing, reputation, business
reviewing custom mer se ervice continuity and disaster recovery plan.

initiativves,, overseeeing the e On March 31, 2017, the Risk Management Committee

functiooninng of cu usttom mer serrvice, FRPSULVHGƬYH'LUHFWRUVDQGZDVFKDLUHGE\6KUL%KDVNDU

evolvinng innnovattive e meassure es for
enhanccing g the qua alitty and
improvving g the ovverall sattisfa action
Sen, an independent Director. There were four Meetings
RIWKH&RPPLWWHHGXULQJWKHƬQDQFLDO\HDUsRQ
May 10, September 20, and November 10, in 2016, and on
March 14, 2017. Committee composition and attendance
at its meetings follow.

level off cu
usttome erss. Table 5. Risk Management Committee and Attendance
at Meetings

The remuneration payable to non-executive/independent Number of meetings

Directors is governed by the provisions of the Banking Name of Members attended by the members
Regulation Act, 1949, RBI guidelines issued from time to out of the total meeting of 4
time and the provisions of the Companies Act, 2013, and Shri Bhaskar Sen, Chairman 4
related rules to the extent these are not inconsistent with Shri Chandra Shekhar Ghosh 4
the provisions of the Banking Regulation Act, 1949/RBI Prof. Krishnamurthy Venkata 3
guidelines. The permitted modes of remuneration for the Subramanian
non-executive/independent Directors are sitting fee for Shri. Ranodeb Roy (Note 1) 2
attending each Meeting of the Committee/Board as Shri. Pradip Kumar Saha (Note 2) 1
approved by the Board from time to time within the limits as Note : 1. Shri Ranodeb Roy was appointed as member of the Committee
ZLWKHƪHFWIURP6HSWHPEHU
provided under the Companies Act, 2013, and related rules.
2. Shri Pradip Kumar Saha was appointed as member of the Committee with
HƪHFWIURP1RYHPEHU
On March 31, 2017, the NRC comprised four Directors
including three independent Directors and the Managing Information Technology (IT) Strategy Committee
Director & CEO, and was chaired by Shri Bhaskar Sen, an The IT Strategy Committee, constituted pursuant to RBI
Independent Director. There were six meetings of the circulars/guidelines, approves strategy for IT and policy
&RPPLWWHHGXULQJWKHƬQDQFLDO\HDUsRQ$SULO documents, ensures that IT strategy is aligned with the
0D\-XO\DQG1RYHPEHULQDQGRQ business strategy, reviews IT risks, ensures proper balance
-DQXDU\DQG0DUFKLQ&RPSRVLWLRQRIWKH of IT investments for sustaining the Bank’s growth, oversees
Committee and attendance at its meetings follow. the aggregate funding of IT at Bank-level, ascertains if
Management has adequate resources to ensure proper
Table 4. Nomination & Remuneration Committee of management of IT risks and reviews the contribution of IT
the Board and Attendance at Meetings to the Bank’s business.

Number of meetings On March 31, 2017, the IT Strategy Committee comprised

attended by the three Directors — two Independent Directors and the
Name of Members
members out of the Managing Director & CEO — and was chaired by Shri
total meeting of 6 Boggarapu Sambamurthy, an Independent Director. There
Shri Bhaskar Sen, Chairman 6 were four meetings of the Committee during 2016-17 – on
Shri Chandra Shekhar Ghosh 6 -XO\6HSWHPEHUDQG'HFHPEHULQDQGRQ
Shri Boggarapu Sambamurthy 5 March 21, 2017. Composition of the Committee and
Shri Snehomoy Bhattacharya 5 attendance at its meetings follow.
Shri Ranodeb Roy (Note 1) 3
Note : 1. Shri Ranodeb Roy was appointed as member of the Nomination &
5HPXQHUDWLRQ&RPPLWWHHZLWKHƪHFWIURP6HSWHPEHU

52

Table 6. IT Strategy Committee and Attendance
at Meetings
Number of meetings
attended by the
Name of Members
members out of the
total meeting of 4
Shri Boggarapu Sambamurthy, 4 On March 31, 2017, the CSR Committee comprised three
Chairman
Shri Chandra Shekhar Ghosh 4 Managing Director & CEO, and was chaired by Sm.
Prof. Krishnamurthy Venkata 4 Thekedathumadam Subramani Raji Gain, an Independent
Subramanian
Customer Service Committee
The functions of the Customer Service Committee of the
Board, constituted pursuant to RBI circulars/guidelines,
include reviewing customer service initiatives, overseeing
the functioning of customer service, evolving innovative
measures for enhancing the quality and improving the
overall satisfaction level of customers.
On March 31, 2017, the Customer Service Committee
comprised three Directors, including two independent
Directors and Managing Director & CEO, and was chaired by
Shri Sisir Kumar Chakrabarti, an Independent Director. There
were four meetings of the Committee during 2016-17 – on
-XQH6HSWHPEHUDQG'HFHPEHULQDQG
March 29, 2017. Composition of the Committee and
attendance at its meetings follow.
Table 7. Customer Service Committee and Attendance
at Meetings
Number of meetings
attended by the
Name of Members
members out of the total
meeting of 4
Shri Sisir Kumar Chakrabarti, 4 was constituted as per RBI circulars/guidelines. The
Chairman
Shri Chandra Shekhar Ghosh 4
Shri Pradip Kumar Saha 4
Corporate Social Responsibility Committee
The functions of the Corporate Social Responsibility
Committee include review of Corporate Social
Responsibility (CSR) initiatives undertaken by the Bank for
inclusive growth, formulation and recommendation to the
Board of a CSR Policy indicating the activities to be
undertaken by the Bank, and the amount of expenditure
to be incurred on such activities. It also makes
recommendations to the Board with respect to the CSR
Statuttorry rep
porrtss
81
initiatives, policies and practices of the Bank, monitors the
conformity of CSR activities, implementation and
compliance with the CSR Policy, and reviews and
implements, if required, any other matter related to CSR
initiatives as recommended/suggested by RBI or any
other body.
Directors including two Independent Directors and the
'LUHFWRU'XULQJWKHƬQDQFLDO\HDUWKHUHZHUHWZR
PHHWLQJVRIWKH&RPPLWWHHRQ-XQHDQG0DUFK
13, 2017. The composition of the Committee and
attendance at its meetings follow.
Table 8. Corporate Social Responsibility Committee
and Attendance at Meetings
Number of meetings
attended by the
Name of Members
members out of the
total meeting of 4
Sm. Thekedathumadam Subramani 2
Raji Gain
Shri Pradip Kumar Saha 2
Shri Chandra Shekhar Ghosh 2
Details of the policy developed and implemented by
the Bank on CSR initiatives taken during 2016-17 have
been hosted on the website of the Bank http://www.
bandhanbank.com/pdf/CSR-Policy-New-Format.pdf. The
Annual Report on CSR activities is at Annexure - 1.
Special Committee for Monitoring High
Value Fraud
The Special Committee for Monitoring High Value Fraud
Committee is required to meet and review as and when a
fraud involving an amount of ` 1 crore and above comes
to light.
At March 31, 2017, the Special Committee for Monitoring
+LJK9DOXH)UDXGFRPSULVHGƬYH'LUHFWRUVLQFOXGLQJIRXU
independent Directors and the Managing Director & CEO,
and was chaired by Shri Sisir Kumar Chakrabarti, an
Independent Director. Since there was no fraud during
2016-17 involving an amount ` 1 crore or more, no
meeting of the Committee was required to be held. The
details of the composition of the Committee follow.
53
 Aapka Bhala, Sabki Bhalai.

Table 9. Special Committee for Monitoring High ii) that they have selected such accounting policies and
Value Fraud applied them consistently and made judgments and
estimates that are reasonable and prudent so as to
Number of meetings JLYHDWUXHDQGIDLUYLHZRIWKHVWDWHRIDƪDLUVRIWKH
Name of Member
held %DQNDVRQ0DUFKDQGRIWKHSURƬWRIWKH
Shri Sisir Kumar Chakrabarti, Nil Bank for the year ended on that date.
Chairman
Shri Chandra Shekhar Ghosh Nil LLL WKDWWKH\KDYHWDNHQSURSHUDQGVXƯFLHQWFDUHIRU
Shri Bhaskar Sen Nil the maintenance of adequate accounting records in
Shri Pradip Kumar Saha Nil (Note 1) accordance with the provisions of the Companies Act,
Shri Snehomoy Bhattacharya Nil (Note 2) 2013, for safeguarding the assets of the Bank and for
Note : 1. Shri Pradip Kumar Saha was appointed as member of Special preventing and detecting fraud and other
&RPPLWWHHIRUPRQLWRULQJ+LJK9DOXH)UDXGZLWKHƪHFWIURP irregularities.
-XO\

2. Shri Snehomoy Bhattacharya was appointed as member of Special iv) that they have prepared the annual accounts on a
&RPPLWWHHIRUPRQLWRULQJ+LJK9DOXH)UDXGZLWKHƪHFWIURP going concern basis.
-XO\

v) that they have devised proper systems to ensure

Directors’ Responsibility Statement compliance with the provisions of all applicable laws
Pursuant to Section 134(3)(c) of the Companies Act, 2013, and that such systems were adequate and were
WKH'LUHFWRUVFRQƬUP RSHUDWLQJHƪHFWLYHO\

i) that in the preparation of the annual accounts, the

applicable accounting standards have been followed
along with proper explanations relating to material
departures.

Issuance/Transfer of Equity Shares

<RXU%DQNGLGQRWLVVXHDQ\HTXLW\VKDUHVGXULQJWKHƬQDQFLDO\HDU7KHUHZDVRQHWUDQVIHURI
equity shares on May 11, 2016 as per details given below:

Table 10. Transfer of Equity Shares on May 11, 2016

Name of Name of No. of Share Distinctive Number

Transferor Transferee shares &HUWLƬFDWH1RV From To
International Finance IFC FIG 18,914,511 14 982,957,483 1,001,871,993
Corporation Investment
Company I
Total 18,914,511

As on March 31, 2017, the issued, subscribed and paid up
capital of your Bank stood at ` 1095,14,10,340 comprising
109,51,41,034 equity shares of ` 10 each fully paid.
Information about Financial Performance
/ Financial Position of the Subsidiaries,
Associates and Joint Venture Companies
The Bank does not have any subsidiaries, associates and
-RLQW9HQWXUH&RPSDQLHV
Capital Adequacy Ratio
Your Bank’s Capital Adequacy Ratio (CAR), calculated in
line with the relevant capital regulations, stood at 26.36
per cent on March 31, 2017, well above the minimum
regulatory requirements of 13 per cent.
Internal Financial Controls, Audit and Compliance
Your Bank has an Internal Audit department and a
Compliance department, which independently carry out

54

evaluation of the adequacy of all internal controls, and
ensure that operating and business units adhere to laid
down internal processes and procedures as well as to
regulatory and legal requirements. The audit department
also proactively recommends improvements in operational
processes and service quality. To mitigate operational risks,
the Bank has put in place extensive internal controls
including audit trails, appropriate segregation of front and
EDFNRƯFHRSHUDWLRQVSRVWWUDQVDFWLRQPRQLWRULQJ
processes at the back end to ensure independent checks
and balances, adherence to the laid down policies and
procedures of the Bank and to all applicable regulatory
guidelines. Your Bank has adhered to the highest standards
of compliance and governance and has put in place controls
and appropriate structure to ensure this. To safeguard
independence, the internal audit department reports
directly to the Chairman of the Audit Committee of the
Board. The Audit Committee of the Board also reviews the
performance of the Audit department and Compliance
GHSDUWPHQWDQGUHYLHZVWKHHƪHFWLYHQHVVRIFRQWUROVDQG
compliance with regulatory guidelines. The Board of
'LUHFWRUVFRQƬUPVWKDWWKHUHDUHLQWHUQDOFRQWUROVLQSODFH
with reference to the Financial Statements and that such
FRQWUROVDUHRSHUDWLQJHƪHFWLYHO\
Particulars of Employees
The Bank had 24,220 employees on March 31, 2017. The
details of employees in terms of Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel)
Statuttorry rep
porrtss
81
against the interest of the Bank or society as a whole. As per
the Whistle Blower Policy, the Audit Committee has been
entrusted with the responsibility of reviewing the complaints
received and the action taken thereof.
Corporate Social Responsibility
In alignment with the vision of the Bank, CSR initiatives
continued to endeavour helping the poorest of the poor,
ZKRDUHGLƯFXOWWRLQFOXGHXQGHUHYHQWKHPLFUREDQNLQJ
DFWLYLW\RI\RXU%DQNE\SURƪHULQJWKHPQRWRQO\ƬQDQFLDO
assistance but also handholding and mentoring about the
optimal use of funds. The outcome that your Bank strives
for is to lift some of the poorest of the poor into the
mainstream of society by making them able to generate
sustained income on their own in due course. The civil
society organisation Bandhan-Konnagar continued to
provide valuable partnership in this mission of your Bank.
The details of CSR activities/projects undertaken during
the year is given as Annexure - 1 and forms part of this
Board Report.
6LJQLƬFDQWDQG0DWHULDO2UGHUV3DVVHGE\
Regulators or Courts or Tribunals
'XULQJWKH\HDUXQGHUUHYLHZQRVLJQLƬFDQWRUPDWHULDO
orders were passed by any Regulators or Courts or
Tribunals against the Bank.
Auditors
Rules, 2014, are appended separately as Annexure - 2 and
form part of this report.
Related Party Transactions
Pursuant to the proviso of Section 188(1) of the
Companies Act, 2013, details of transactions with related
parties are appended in Annexure – 3.
Particulars of Loans, Guarantees or
Investments
Pursuant to Section 186 (11) of the Companies Act, 2013, the
provisions of Section 186 of Companies Act, 2013, except
sub-section (1), do not apply to a loan made, guarantee given
or security provided by a banking company in the ordinary
course of business. Further, in terms of the Companies
$WWKH$QQXDO*HQHUDO0HHWLQJ$*0KHOGRQ-XQH
WKHPHPEHUVUDWLƬHGWKHDSSRLQWPHQWRI0V65
Batliboi & Associates LLP, Chartered Accountants, 22,
Camac Street, Block C, 3rd Floor, Kolkata – 700016 (ICAI
Firm Registration Number 101049W) as statutory auditors
till the conclusion of the next AGM. As recommended by
the Audit Committee, the Board has proposed the
UDWLƬFDWLRQRIWKHDSSRLQWPHQWRI65%DWOLERL 
Associates LLP, Chartered Accountants, as Statutory
$XGLWRUVIRUWKHƬQDQFLDO\HDU
Secretarial Auditors
Pursuant to the provisions of Section 204 of the
Companies Act, 2013, and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014,
5HPRYDORI'LƯFXOWLHV2UGHUQRWKLQJLQ6HFWLRQ
except sub section (1) shall apply to any acquisition made by a
banking company in the ordinary course of business. The
particulars of investments made by the Bank are disclosed in
Schedule 8 of the Financial Statements as per the applicable
provisions of the Banking Regulation Act, 1949.
Whistle Blower Policy/ Vigil Mechanism
The Bank has adopted a Whistle Blower Policy pursuant to
which employees of the Bank can raise their concerns relating
to fraud, malpractice or any other activity or event which is
the Bank has appointed Shri Deepak Kumar Khaitan,
Practicing Company Secretary (C.P. 5615) to conduct
Secretarial Audit of the Bank. The Secretarial Audit Report
is given in Annexure - 4 to this report.
7KHUHDUHQRTXDOLƬFDWLRQVUHVHUYDWLRQVRUDGYHUVH
remarks made by M/s. S.R. Batliboi & Associates LLP,
Chartered Accountants, Statutory Auditors of the Bank, in
their Auditors’ report, or by Shri Deepak Kumar Khaitan,
Practicing Company Secretary (C.P. 5615), Secretarial
Auditors of the Bank, in their Secretarial Audit Report.
55
 Aapka Bhala, Sabki Bhalai.

Rating
Table 11. Rating of Bank’s Financial Securities
Instrument Rating Rating Agency Amount
Long - term Bank Facilities Care AA- Care Ratings ` 133.97 crore
Unsecured Subordinated Non- Care AA- Care Ratings ` 160 crore
Convertible Debenture [ICRA]AA- ICRA
Term Loan from Banks [ICRA]AA- ICRA ` 80 crore
&HUWLƬFDWHRI'HSRVLW [ICRA]A1+ ICRA ` 500 crore

Conservation of Energy, Technology Reserves

Absorption and Foreign Exchange Earnings
DQG2XWJR
Considering the nature of activities of the Bank, the
provisions of Section 134(m) of the Companies Act, 2013,
read with Rule 8 of the Companies (Accounts) Rules, 2014
relating to conservation of energy and technology
absorption do not apply to the Bank. The Bank is however,
constantly pursuing its goal of technological upgradation
LQDFRVWHƪHFWLYHPDQQHUIRUGHOLYHULQJTXDOLW\FXVWRPHU
service. There were no foreign exchange earnings and
outgo during 2016-2017.
([WUDFW2I$QQXDO5HWXUQ
Pursuant to Section 92 (3) of the Companies Act, 2013, and
Rule 12 (1) of the Companies (Management and
Administration) Rules, 2014, the extract of the Annual
Return is at Annexure - 5.
Management’s Discussions and Analysis
The Management Discussion and Analysis report enclosed
as Annexure - 6 forms part of this report.
Information Under the Sexual Harassment
of Women at Workplace (Prevention,
Prohibition And Redressal) Act, 2013
Your Bank has zero tolerance towards any action on the
part of any executive which may fall under the ambit of
‘Sexual Harassment’ at workplace, and is fully committed
to uphold and maintain the dignity of every woman
executive working in the Bank. The Bank takes all
necessary measures to ensure a harassment-free
workplace and has instituted an Internal Complaints
Committee for redressal of complaints and to prevent
sexual harassment. The Policy provides for protection
against sexual harassment of women at workplace and for
prevention and redressal of such complaints.
Number of Number of
Number of
complaints complaints
complaints
pending as at the pending as at
ƬOHGGXULQJWKH
beginning of the the end of the
ƬQDQFLDO\HDU
ƬQDQFLDO\HDU ƬQDQFLDO\HDU
1 4 Nil
As required under Section 134(3)(j) of the Companies Act,
2013, the reserves as on the close of 2016-17 stood at
` 3,351.31 crore.
Deposits
The details of the deposits received and accepted by your
Bank as a banking company are enumerated in the
ƬQDQFLDOVWDWHPHQWIRUWKH\HDUHQGHG0DUFK
Human Resource Management
Your Bank recognises that strategic human resource is key to
organisational success. Thus, the goal of the Human
Resources (HR) department is to ensure that the employees
are recruited, engaged, retained and motivated to contribute
to the Bank’s growth and strategic mission. The HR
Department proactively engages with employees at all levels
for this purpose. The vision is to create an environment and
culture of learning and superior performance by living the
Bank’s corporate values and aligning the personal aspirations
of employees to business imperatives.
The employee engagement initiatives includes placing
greater emphasis on learning and development, providing
RSSRUWXQLWLHVWRVWDƪWRVHHNDVSLUDWLRQDOUROHV
streamlining the Performance Management System and
introducing performance-linked rewards. A host of
programs are being run to meet the on-going learning and
development needs in the Bank and promote a climate of
learning, self-growth and excellence. The learning
architecture in your Bank focusesses on:
1. Developing tailor-made, competency-mapped
SURJUDPVIRUGLƪHUHQWVHWVRIHPSOR\HHVEDVHGRQ
their roles in the Bank.
2. Induction/orientation of new hires for inculcating the
culture of the Bank.
3. Training on operational risk, audit, compliance and
UHJXODWRU\DVSHFWVIRUIURQWOLQHVWDƪ
4. People management, customer-centric, and
compliance-based programmes for employees in
leadership roles.

56

Through its eight residential training centers across the
country, and through a wide range of training programs, your
Bank has provided 85,354 days (in FY 2016-17) of training to
its employees, spread across departments and functions, to
build their professional competence and improve their skill
set, so as to contribute to your Bank’s mission.
Additionally, the Bank continues to engage with leading
management institutes for leadership and management
development programs and specialised programs for
employees across senior and mid-management levels
RIVWDƪ
Your Bank believes that the Performance Management
(PM) process is a powerful driver of individual and
corporate performance. An online PM System (PMS), with
focus on building transparency in performance
assessments, employee ownership of the goals and
encouraging dialogue on performance and developmental
feedback between the appraisee and appraiser, was
introduced in your Bank. Softer behavioural attributes, like
the employee’s adherence to values of the organisation,
customer focus, accountability, ability to work in a team,
etc. build a culture conducive to sustainable business
performance and promote desired behaviour. Recognising
their importance, attention was also paid to such softer
behavioural attributes.
Your Bank shall continue to leverage and/or align HR
practices to build critical organisational capabilities, build
a conducive work environment to enhance and shape
employee satisfaction, and enable achievement of the
strategic goals.
Risk Management Framework
Your Bank’s risk management framework seeks to ensure
WKDWWKHUHLVDQHƪHFWLYHSURFHVVLQSODFHWRPDQDJHULVNV
across the Bank. Risk management is integral to all aspects
Statuttorry rep
porrtss
81
As a part of ensuring senior Management participation,
VSHFLƬF&RPPLWWHHVHJ&UHGLW5LVN0DQDJHPHQW
Committee (CRMC) for Credit Risk, Operational Risk
Management Committee (ORMC) for Operational Risk,
Asset Liability Committee (ALCO) for Market Risk and
Asset Liability Management, have been constituted to
facilitate focussed oversight of various risks and report to
the RMCB.
The overall Risk Limits and Appetite Statements are
approved by the Board of Directors. The Risk Appetite
Framework (RAF) guides Management on the desired level
of risk for various types of risk and helps steer the decision
PDNLQJSURFHVV7KH%RDUGUHYLHZVWKHULVNSURƬOHRIWKH
Bank, as approved by the RMCB, on a regular basis.
The Internal Capital Adequacy Assessment Process (ICAAP)
assesses the overall capital adequacy of the Bank and the
VLJQLƬFDQWULVNVLQWHUPVRIFDSLWDO6WUHVVWHVWVDUHGRQH
as part of the ICAAP document, to evaluate the capital
adequacy during stressed scenarios. The RMCB reviews
the capital adequacy position of the Bank under normal
and stressed conditions on a regular basis. The Bank is also
striving towards building frameworks for managing Pillar II
risks, like reputation risk, business risk and strategic risk.
Risk Management Department is responsible for setting
up the appropriate risk control mechanism and for
TXDQWLI\LQJDQGPHDVXULQJULVN%URDGO\FODVVLƬHGLQWR
three major sub-segments (Credit Risk, Market Risk and
Operational Risk), the Risk Management Department
owns, maintains and updates the various policies. The Risk
Management team also provides analysis of the existing
and emerging risks to the committees such as ALCO,
CRMC, ORMC, as also to RMCB, and based on the
deliberations thereof, provides guidance to the various
business Groups. The Bank maintains independence of the
risk function. The Risk Management Department operates
RIWKH%DQNoVDFWLYLWLHVDQGLVWKHUHVSRQVLELOLW\RIDOOVWDƪ
The Board of Directors has oversight on all the risks
assumed by the Bank.
The Risk Management Committee of the Board (RMCB)
reviews risk management policies of the Bank pertaining
to credit, market, liquidity, operational, outsourcing and
business continuity management. Policies approved from
time to time by the Board of Directors/Committees of the
Board form the governing framework for each type of risk.
The Audit Committee of the Board (ACB) provides
direction to and monitors the quality of internal audit
function. The internal audit function monitors the
HƪHFWLYHQHVVRIWKH%DQNoVULVNSURJUDPDQGSURYLGH
objective assurance that risks are being managed
appropriately.
XQGHUWKHGLUHFWLRQRI&KLHI5LVN2ƯFHU&52ZKR
reports directly to the RMCB.
&UHGLW5LVN
Credit Risk Management Department (CRMD) is responsible
for measurement, monitoring and assessment of the credit
risk of the Bank. CRMD is responsible for thorough risk
vetting of credit proposals and highlighting the inherent risks
therein to the sanctioning authorities. It also carries out
continuous monitoring of the portfolio for delinquency trend
and credit limits. The CRMC is responsible for overseeing
implementation of credit risk management framework across
the Bank and providing recommendations to the RMCB.
Responsibility of CRMC includes implementation of credit risk
policy/strategy approved by the Board, monitoring credit risk,
deciding delegation of credit approving powers, and
prudential limits.
57
 Aapka Bhala, Sabki Bhalai.

0DUNHWDQG/LTXLGLW\5LVN
Market Risk Management Department is responsible for
The aim
m of settiing g up 84
40
assessing, measuring and monitoring investment risk hes by end
branch d-MMarch 2017
(measured through PV01 or change in present value for a
EDVLVSRLQWFKDQJHLQWKH\LHOGFXUYH0RGLƬHG'XUDWLRQ was su
ucceessffullyy achie
eve
ed.
monthly loss and marked-to-market or MTM position), Within
n 1 year annd 7 monthss of
liquidity risk, interest rate risk and risks emanating from
FRPPRGLW\DQGHTXLW\SULFHƮXFWXDWLRQV$/&2LV comme enccin
ng opperratioonss, yo
our
responsible for managing these risks and reporting to the
RMCB. ALCO has the power to determine pricing of assets,
Bank also
o had 282 2 ATMs an nd
liabilities, maturity and also to play a role in approving the 2,443 DSCCs.
ƬQDOEHQFKPDUNPDUJLQDOFRVWRIOHQGLQJUDWH0&/5
2SHUDWLRQDO5LVN
Operational Risk Management Department manages the
risks emanating from people, process and systems of the
Bank, including fraud risk, legal risk and outsourcing risk,
and ensures that the appropriate risk controls are in place.
The ORMC is responsible for measuring, monitoring and
reporting of these risks as per the Board-approved policies.
The Business Continuity Plan (BCP) framework ensures
continuity of services.
Information Security Team assesses the IT-related
vulnerabilities and manages the existing and emerging
cyber security risks faced by your Bank.
Information Technology
Your Bank continues to try and further deepen and broaden
its reach and expand its market share by establishing DSCs,
building relationships and spreading digital banking by
extensive use of modern technology. Information
Technology has transformed the landscape of the banking
industry. Today, the customer, who is highly mobile, expects
services to be available at the time and place of their choice
and this expectation can be met only through the provision
of information technology-led or digital services. Your
Bank’s technology-led products, e.g. mBandhan, its mobile
banking application, try to deliver a seamless banking
experience at the place of the customer’s choice, i.e., their
place, at one of your Bank’s branches or wherever they are
when on the move.
Technology has been used even for the delivery of
micro-banking services, which is always close to the
FXVWRPHUoVKRPHV'LUHFW6DOHV2ƯFHUVYLVLWFXVWRPHUV
and use Hand-held devices (Point-of-sale machines) to
carry out the banking transactions. With innovative ways
of banking like collections of loan instalments and
providing cash receipts and payments for customers at
58
their doorsteps, banking near the place of the micro-
banking customer was never so easy and simple. Your Bank
can be proud of introducing a new trend in micro-banking.
Your Bank has tied up with two Payment Gateway Service
providers for online net banking transactions. Now Bank
customers can shop and pay online through net banking
on more than 2,500 merchant websites. Your Bank also
started merchant acquiring services by deploying
Electronic Draft Capture (EDC) or Point of Sale (PoS)
terminals, which accept RuPay and Visa Cards at 5,743
merchant outlets.
Your Bank has also enabled customers to do Aadhar
seeding and mobile registration through the Bank’s ATMs.
Your Bank recognises that improving its use of information
WHFKQRORJ\LVIDUIURPDRQHRƪHQGHDYRXUWKH%DQNKDV
to run to be at the same place.
%DQNLQJDW2QHRIWKH%DQNoV%UDQFKHV
Your Bank has ensured that opening of an account, issue
of a bank draft, payment of a cheque, facility of scheduling
payments or transfers of funds at any of its branches is a
simple and fast operation with the state-of-the-art Core
Banking Solution. This has been possible with a seamless
integration of the digital and physical. The aim of setting
up 840 branches by end-March 2017 was successfully
achieved. Within 1 year and 7 months of commencing
operations, your Bank also had 282 ATMs and 2,443 DSCs.
6DIH 6HFXUH%DQNLQJ
Your Bank has implemented a robust IT Policy, Information
Security Policy and Cyber Security Policy. These policies, in
line with international best practices, are reviewed
periodically and suitably strengthened to address
emerging threats.
 Statuttorry rep
porrtss

81

Your Bank has got a state-of-the-art Primary Data Centre Bank are compliant with the International BCMS Standard
and Disaster Recovery Centre to secure the live systems. – ISO 22301 – 2012.
The centres have got ISO 27001 and Payment Card
,QGXVWU\'DWD6HFXULW\6WDQGDUG3&,'66FHUWLƬHG<RXU
Bank has made substantial progress in implementing the
RBI guidelines on Technology Risk Management,
Information Security and Cyber Fraud. It is in the process of
implementing additional IT security products and features
to provide ‘Best in Class Information Security’ features and
safe and secure banking to all of its customers.
Your Bank conducts regular cyber security drills. Employee
awareness programmes are conducted to ensure security
and increase awareness.
Your Bank is one of the few banks to implement
biometric login for all employees to access the Core
Banking Application. With a two factor authentication, this
provides an edge on the information security front. It has
also implemented the state-of-the-art Advanced Malware
Protection Solution to secure its systems from current
cyber threats.
Your Bank has accomplished resiliency in treasury business
E\RSHQLQJ7UHDVXU\)URQW2ƯFH2SHUDWLRQVLQ0XPEDL
DQGUHVLOLHQF\LQ%DFN2ƯFH2SHUDWLRQVE\RSHQLQJ
Central Processing Unit in Indore.
Disaster Recovery Drills are conducted regularly as part of
the implementation of the Business Continuity
Management System (BCMS). Critical IT Systems of your
The Application setups undergo security reviews before
‘Go Live’ and are also reviewed periodically.
Acknowledgments
The Board of Directors places on record its gratitude to
the RBI, other government and regulatory authorities,
ƬQDQFLDOLQVWLWXWLRQVDQGFRUUHVSRQGHQWEDQNVIRUWKHLU
strong support and guidance. The Board acknowledges the
support of the shareholders, and also places on record its
sincere thanks to its valued clients and customers for their
patronage. The Board also expresses its deep sense of
appreciation to all employees of the Bank for their strong
work ethic, excellent performance, professionalism,
teamwork, commitment and initiative, which has led to the
Bank making commendable progress in today’s
challenging environment. However, it also assures
0DQDJHPHQWDQGVWDƪWKDWWKH%RDUGZLOOFRQWLQXHWRDVN
for more and more improvements as your Bank continues
its unique journey by combining micro-banking with
traditional commercial banking.
For and on behalf of the Board of Directors
Bandhan Bank Limited
Chairman
Place: Kolkata Ashok Kumar Lahiri
Date : 26th April, 2017 (DIN: 07234290)
59
 Aapka Bhala, Sabki Bhalai.

Annexure - 1

$QQXDO5HSRUWRQ&RUSRUDWH6RFLDO5HVSRQVLELOLW\&65DFWLYLWLHVIRUWKHƬQDQFLDO\HDU

1 A brief outline of the Company’s CSR Policy including overview of projects or Refer Section on Corporate Social
programs proposed to be undertaken and a reference to the web-link to the CSR Responsibility forming part of the
Policy and projects or programs and the composition of CSR Committee. Board’s Report enclosed herewith.
Composition of CSR Committee :
i. Sm. TS Raji Gain
ii. Shri Chandra Shekhar Ghosh
iii Shri P K Saha
2 $YHUDJHQHWSURƬWRIWKH&RPSDQ\IRUODVWWKUHHƬQDQFLDO\HDUV ` 20,790.58 lakh
3 Prescribed CSR expenditure ` 415.81 lakh
(two percent of the amount mentioned in item 2 above)
4 'HWDLOVRI&65VSHQWGXULQJWKHƬQDQFLDO\HDU
D7RWDODPRXQWWREHVSHQWIRUWKHƬQDQFLDO\HDU ` 421.00 lakh
(b) Amount unspent, if any Not applicable
F0DQQHULQZKLFKWKHDPRXQWVSHQWGXULQJWKHƬQDQFLDO\HDU Details Given below

Details of amount spent on CSR activities during the Financial Year 2016-17

Sl. CSR Project Sector in which the Projects or programme Amount Amount Cumulative Amount Spent
No. or activity project is covered (1) Local Area or other outlay spent on expenditure directly
LGHQWLƬHG (Clause No. of (2) State and districts (budget ` in projects upto the or through
Schedule VII to the where programme was lakh) (` in lakh) reporting implementing
Companies Act, 2013 undertaken period agency
as amended) (` in lakh)
1 Targeting The Clause No. West Bengal – Bankura 169.13 169.13 169.13 Implementing
Hard Core (i) eradicating hunger, Agency:
Poor poverty and Bandhan-
Programme malnutrition, promoting Konnagar*
preventive health care
and sanitation and
making available safe
drinking water.
Clause (x) rural
development projects.
2 Education Clause No. West Bengal – 119.03 119.03 119.03 Implementing
Programme (i) eradicating hunger, Murshidabad, Burdwan, Agency:
poverty and North Dinajpur, Howrah Bandhan-
malnutrition, promoting Konnagar*
preventive health care
and sanitation and
making available safe
drinking water.
Clause (x) rural
development projects.
3 Health Clause No. West Bengal – North 24 132.84 132.84 132.84 Implementing
Programme (i) eradicating hunger, Parganas, Bankura, Agency:
poverty and Murshidabad Bandhan-
malnutrition, promoting -KDUNKDQGs3DNXU Konnagar*
preventive health care
and sanitation and
making available safe
drinking water.
Clause (x) rural
development projects.
Total 421.00 421.00 421.00
*Bandhan-Konnagar is a Society registered under The West Bengal Societies Registration Act, 1961.

60
 Statuttorry rep
porrtss

81

Responsibility Statement
The Responsibility Statement of the CSR Committee of the Board of Directors of the Company, is reproduced below:

‘The implementation and monitoring of Corporate Social Responsibility (CSR) policy, is in compliance with CSR objectives
and policy of the Company.’

0DQDJLQJ'LUHFWRU &(2 Chairman CSR Committee

For and on behalf of the Board of Directors

Bandhan Bank Limited

Chairman
Place: Kolkata Ashok Kumar Lahiri
Date : 26th April, 2017 (DIN: 07234290)

61
62
Annexure - 2
Details of Employees as per Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Name & Designation of Remuneration Nature of 4XDOLƬFDWLRQVDQG Date of Age The last The percentage Whether any
the employee received employment, experience of the commencement of employment of equity shares such employee
during 2016-17 whether employee employment before joining held in the is a relative of
(`) contractual or company within any director or
otherwise the meaning manager of the
Aapka Bhala, Sabki Bhalai.

of clause (iii) company

of sub-rule (2)
above
Mr. Chandra Shekhar Ghosh, 19,468,680 Regular M.Sc. in Statistics and 30 From the 55 Years Bandhan Nil N.A.
Managing Director & CEO years of experience commencement of Financial
Company Services
Limited
5DKXO-RKUL+HDG5HWDLO 13,658,903 Regular B.Tech and Masters in March 01, 2016 48 Years DBS Bank Ltd Nil N.A.
Banking Business Management and
26 Years of experience

Vijaykumar Ramakrishna, 7,463,568 Regular BE- Electronics & February 01, 2016 43 Years Intuit Global Nil N.A.
&KLHI,QIRUPDWLRQ2ƯFHU Telecommunication, Development
MBA- Finance and 16 Years Centre
of experience
Tamal Bandyopadhyay, 6,000,000 Contractual Postgraduate from Calcutta August 23, 2015 55 Years HT Media Nil N.A.
Adviser University and 31 Years of Limited (Mint)
experience
Arun Raman, Head - Banking 6,778,825 Regular PGDM from IIM Lucknow, May 05, 2015 47 Years Manappuram Nil N.A.
Operations & Customer and 23 years of experience Finance Ltd
Services
Santanu Banerjee, 7,553,504 Regular MBA and 22 years of September 03, 48 Years Axis Bank Ltd. Nil N.A.
Head - HR experience 2014
Sunil Samdani, CFO 8,522,437 Regular CA and 20 Years of March 14, 2015 42 Years Karvy Financial Nil N.A.
experience Services Ltd

For and on behalf of the Board of Directors

Bandhan Bank Limited

Chairman
Ashok Kumar Lahiri
(DIN: 07234290)
Place: Kolkata
Date: 26th April, 2017
 Statuttorry rep
porrtss

81

Annexure - 3

)25012$2&s

[Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies
(Accounts) Rules, 2014]

Form for disclosure of particulars of contracts / arrangements entered into by the Company with the related parties
referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s-length transactions
under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm’s length basis:

Sl. Name of Nature of Duration of Salient features -XVWLƬFDWLRQIRU Date(s) of Amount Date on
No. the related contracts / contracts / of contracts / entering into approval by paid as which
party and arrangements / arrangements / arrangements such contracts / the Board advances, special
nature of transactions transactions / transactions, arrangements / (f) if any resolution
relationship (b) (c) including value, transactions (g) was passed
(a) if any (e) in General
(d) meeting
u/s 188(1)
(h)
Nil

2. Details of material contracts or arrangements or transactions at arm’s length basis:

1 Mr. Chandra Shekhar Remuneration Appointed for 194.69 Remuneration Date of Nil 20.06.2016
Ghosh (Managing ƬYH\HDUZHI was paid to approval by
Director & Chief 10.07.2015 Mr. Chandra the Board
([HFXWLYH2ƯFHU Shekhar Ghosh for – 26.07.2016
services rendered
by him as
Managing Director
and CEO.
2 Mr. Indranil Banerjee Remuneration :LWKHƪHFWIURP 23.35 Remuneration was Date of Nil NA
(Company 01.04.2016 paid to Mr. Indranil approval by
Secretary)* Banerjee for the Board
services rendered – 26.07.2016
by him as
Company
Secretary.
3 Mr. Sunil Samdani Remuneration :LWKHƪHFWIURP 85.22 Remuneration was Date of Nil NA
(Chief Financial 01.04.2016 paid to Mr. Sunil approval by
2ƯFHU Samdani for the Board
services rendered – 26.07.2016
by him as the Chief
)LQDQFLDO2ƯFHU
4 Mr. Dibakar Ghosh Remuneration :LWKHƪHFWIURP 48.68 Remuneration was Date of Nil 29.06.2015
(Head IT Operations 01.04.2016 paid to Mr. Dibakar approval by
– System and Ghosh for services the Board
Networking)** rendered by him – 26.07.2016
as Head IT
Operations
– System and
Networking

63
 Aapka Bhala, Sabki Bhalai.

Sl. Name of the related Nature of Duration of Salient -XVWLƬFDWLRQIRU Date(s) of Amount Date on
No. party and nature of contracts / contracts / features of entering into approval by paid as which special
relationship arrangements / arrangements / contracts / such contracts / the Board advances, resolution
(a) transactions transactions arrangements arrangements / (f) if any was passed
(b) (c) / transactions, transactions (g) in General
including (e) meeting u/s
value, if any (d) 188(1) (h)
(` in lakh)
5 Mr. Vaskar Remuneration :LWKHƪHFWIURP 16.83 Remuneration Date of Nil NA
Ghosh(Head 01.04.2016 was paid to Mr. approval by
Procurement)** Vaskar Ghosh for the Board
services rendered – 26.07.2016
by him as Head
Procurement.

Note 1: - * denotes KMP i.e. Key Managerial Personnel

Note 2: - ** denotes relatives of Key Managerial Personnel

For and on behalf of the Board of Directors

Bandhan Bank Limited

Chairman
Place: Kolkata Ashok Kumar Lahiri
Date : 26th April, 2017 [DIN: 07234290]

64
 Statuttorry rep
porrtss

81

Annexure - 4

6(&5(7$5,$/$8',75(3257
For the Financial year ended on 31st March, 2017
[Pursuant to Section 204(1) of the Companies Act, 2013 and rule 9 of the Companies
(Appointment andRemuneration of Managerial Personnel) Rules, 2014]

To (iii) The Depositories Act, 1996 and the Regulations and

The Members
BANDHAN BANK LIMITED
5HJLVWHUHGRƯFH'16HFWRU96DOW/DNH
Kolkata -700 091
I have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by BANDHAN BANK LIMITED
having CIN U67190WB2014PLC204622 (hereinafter
called ‘the Bank’). Secretarial Audit was conducted in a
manner that provided me a reasonable basis for evaluating
the corporate conducts/statutory compliances and
expressing my opinion thereon.
%DVHGRQP\YHULƬFDWLRQRIWKH%DQNoVERRNVSDSHUV
%\HODZVIUDPHGWKHUHXQGHU
(iv) Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent
of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings,
ZKHUHYHUDSSOLFDEOH
(v) The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’) :-
(a) The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011-(Not applicable to the Bank
PLQXWHERRNVIRUPVDQGUHWXUQVƬOHGDQGRWKHUUHFRUGV GXULQJWKH$XGLW3HULRG
maintained by the Bank and also the information provided
E\WKH%DQNLWVRƯFHUVDJHQWVDQGDXWKRULVHG (b) Securities and Exchange Board of India
representatives during the conduct of Secretarial Audit, I
hereby report that in my opinion, the Bank has, during the
DXGLWSHULRGFRYHULQJWKHƬQDQFLDO\HDUHQGHGRQVW
March, 2017 (hereinafter called ‘the Audit Period’)
complied with the statutory provisions listed hereunder
3URKLELWLRQRI,QVLGHU7UDGLQJ5HJXODWLRQV
(c) The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2009- (Not applicable to the Bank
and also that the Bank has proper Board-processes and
compliance-mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter.
I have examined the books, papers, minute books, forms
GXULQJWKH$XGLW3HULRG
(d) The Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999 (Not
DQGUHWXUQVƬOHGDQGRWKHUUHFRUGVPDLQWDLQHGE\WKH
%DQNIRUWKHƬQDQFLDO\HDUHQGHGRQVW0DUFK
according to the provisions of:
(i) The Companies Act, 1956 and the rules made
thereunder, to the extent they were applicable during
the Audit Period and The Companies Act, 2013 and
the rules made thereunder (hereinafter collectively
DSSOLFDEOHWRWKH%DQNGXULQJWKH$XGLW3HULRG
(e) The Securities and Exchange Board of India
(Issue and Listing of Debt Securities)
5HJXODWLRQV
(f) The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
FDOOHGDVnWKH$FWo Regulations, 1993 regarding the Companies Act
and dealing with client (Not applicable to the
(ii) The Securities Contracts (Regulation) Act, 1956 %DQNGXULQJWKH$XGLW3HULRG
n6&5$oDQGWKHUXOHVPDGHWKHUHXQGHU
(g) The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009-
(Not applicable to the Bank during the Audit
3HULRGDQG

65
 Aapka Bhala, Sabki Bhalai.

(h) The Securities and Exchange Board of India All decisions at board meetings and committee meetings
(Buyback of Securities) Regulations, 1998- (Not held during the Audit Period carried out unanimously as
DSSOLFDEOHWRWKH%DQNGXULQJWKH$XGLW3HULRG recorded in the minutes of the respective meetings.
(vi) The Banking Regulation Act, 1949 and Rules made
thereunder and The Securitisation and Reconstruction
of Financial Assets and Enforcement of Security
Interest, 2002 and Recovery of Debts Due to Banks
and Financial Institutions Act, 1993 are the other laws
DSSOLFDEOHVSHFLƬFDOO\WRWKH%DQNIRUWKHSXUSRVHRI
reporting under this point as per the Management
Representation Letter issued by the Bank of even date
I have also examined compliance with the applicable
clauses of the following:
(i) Secretarial Standards issued by The Institute of
Company Secretaries of India.
(ii) The Listing Agreement (Debt Listing Agreement)
entered into by the Bank with BSE Limited read with
The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements)
Regulations 2015.
During the period under review the Bank has generally
complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned above.
I further report that
The Board of Directors of the Bank is duly constituted with
proper balance of Executive Directors, Non-Executive
Directors and Independent Directors. The changes in the
composition of the Board of Directors that took place
during the Audit Period were carried out in compliance
with the provisions of the Act.
Adequate notices were given to all directors to schedule
the board meetings, agenda and detailed notes on agenda
were sent at least seven days in advance and a system
exists for seeking and obtaining further information and
FODULƬFDWLRQVRQWKHDJHQGDLWHPVEHIRUHWKHPHHWLQJDQG
for meaningful participation at the meeting.
66
I further report that there are adequate systems and
processes in the Bank commensurate with the size and
operations of the Bank to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
I further report that during the Audit Period, the
IROORZLQJVSHFLƬFHYHQWVDFWLRQVKDYHDPDMRUEHDULQJRQ
WKH%DQNoVDƪDLUVLQSXUVXDQFHRIWKHODZVUXOHV
regulations, guidelines, standards etc. referred to as above
are as follows : -
(a) Consent received from BSE Limited for trading of
non-convertible debentures (NCDs) in the name of the
Bank instead of Bandhan Financial Services Limited
(BFSL) since the aforesaid NCDs were transferred by
BFSL to the Bank as per business transfer agreement
dated 11th February, 2015 executed between them in
consonance with RBI Guidelines for Licensing of New
Banks in Private Sector dated 22nd February, 2013 and
the special resolution passed by the members of the
Bank on 10th February, 2015.
(b) Pre-mature redemption of part of the above non-
convertible debentures (NCDs) due to exercise of call
option aggregating to ` 100 Crores.
(c) Redemption of part of the above non-convertible
debentures (NCDs) aggregating to ` 60 Crores.
This report is to be read with our letter of even date which
is annexed as Annexure - A and form an integral part of
this report.
Signature:
Name: Deepak Kumar Khaitan
Place: Kolkata F.C.S. No.: 5615 / C.P. No.: 5207
Date : 26th April, 2017 ICSI Unique Code No.: I2003WB347200

To
The Members
BANDHAN BANK LIMITED
5HJLVWHUHG2ƯFH'16HFWRU96DOW/DNH
Kolkata -700 091
Our Secretarial Audit Report of even date is to be read
along with this letter.
1. Maintenance of secretarial record is the responsibility
of the management of the Bank. Our responsibility is
to express an opinion on these secretarial records
based on our audit.
2. We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the secretarial
UHFRUGV7KHYHULƬFDWLRQZDVGRQHRQWHVWEDVLVWR
HQVXUHWKDWFRUUHFWIDFWVDUHUHƮHFWHGLQVHFUHWDULDO
records. We believe that the processes and practices, we
followed provide a reasonable basis for our opinion.
 :HKDYHQRWYHULƬHGWKHFRUUHFWQHVVDQG
DSSURSULDWHQHVVRIƬQDQFLDOUHFRUGVDQG%RRNVRI
Accounts of the Bank.
Statuttorry rep
porrtss
81
Annexure - A
to the SECRETARIAL AUDIT REPORT
For the Financial year ended on 31st March, 2017
4. Where ever required, we have obtained the
Management representation about the compliance
of laws, rules and regulations and happening of
events etc.
5. The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards
is the responsibility of management. Our
examination was limited to the verification of
procedures on test basis.
6. The Secretarial Audit Report is neither an assurance
as to the future viability of the Bank nor of the
HƯFLHQF\RUHƪHFWLYHQHVVZLWKZKLFKWKH
PDQDJHPHQWKDVFRQGXFWHGWKHDƪDLUVRIWKH%DQN
Signature:
Name: Deepak Kumar Khaitan
Place: Kolkata F.C.S. No.: 5615 / C.P. No.: 5207
Date : 26th April, 2017 ICSI Unique Code No.: I2003WB347200
67
 Aapka Bhala, Sabki Bhalai.

Annexure - 5

)250120*7
(;75$&72)$118$/5(7851
DVRQWKHƬQDQFLDO\HDUHQGHGRQ0DUFK
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1)
of the Companies (Management and Administration) Rules, 2014]

, 5HJLVWUDWLRQDQG2WKHU'HWDLOV

i) CIN :- U67190WB2014PLC204622

ii) Registration Date : December 23, 2014

iii) Name of the Company : Bandhan Bank Limited

iv) Category / Sub-Category of the Company : Public Company / Limited by shares

 Y $GGUHVVRIWKH5HJLVWHUHGRƯFHDQGFRQWDFWGHWDLOV'16HFWRU96DOW/DNH.RONDWDs
3K)D[

vi) Whether listed company Yes / No : Yes (Only Non-Convertible Debentures are listed on BSE)

vii) Name, Address and Contact details of Registrar and Transfer Agent, if any: Karvy Computershare Private
Limited, 17-24, Vittal Rao Nagar, Madhapur, Hyderabad, Andhra Pradesh – 500 081, Tel no. : 040 44655000,
Fax : 040 - 23420814

II. Principal Business Activities of the Company

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Sl. Name and Description of NIC Code of the Product/ service % to total turnover of the
No. main products/services company
1 Banking and Financial Services Code : 64191 100

III. Particulars of Holding, Subsidiary and Associate Companies

Sl. Name and Address of CIN/GLN Holding/ % of shares Applicable
No. the Company Subsidiary/ held Section
Associate
1 Bandhan Financial U67190WB2014PLC204317 Holding 89.76 2(87)
+ROGLQJV/LPLWHG'1
Sector - V, Salt Lake City,
Kolkata - 700091

68
 Statuttorry rep
porrtss

81

IV. Shareholding Pattern (Equity Share Capital Breakup as percentage of Total Equity)
L &DWHJRU\ZLVH6KDUHKROGLQJ

% Change
No. of Shares held at the beginning of the year No. of Shares held at the end of the year
during the year
Category of Shareholders
% of Total % of
Demat Physical Total Demat Physical Total
Shares Total Shares
$3URPRWHUV
(1) Indian
a) Individual/ HUF - - - - - -
b) Central Govt
c) State Govt (s)
d) Bodies Corp. 982,957,482 982,957,482 89.76 982,957,482 982,957,482 89.76 0
f) Any Other...
Sub-total (A) (1):- 982,957,482 982,957,482 89.76 982,957,482 982,957,482 89.76 0
(2) Foreign
a) NRIs - Individuals - - - - - -
b) Other - Individuals - - - - - -
c) Bodies Corp. - - - - - -
d) Banks / FI - - - - - -
e) Any Other... - - - - - -
Sub-total (A) (2):- - - - - - -
Total shareholding of 982,957,482 982,957,482 89.76 982,957,482 982,957,482 89.76 0
Promoter (A) =
(A) (1)+(A)(2)
%3XEOLF6KDUHKROGLQJ
1. Institutions
a) Mutual Funds
b) Banks/FI - 3,494,060 3,494,060 0.32 - 3,494,060 3,494,060 0.32 0
c) Central Govt.
d) State Govt. (s) - - - - - - - -
e) Venture Capital Funds
f) Insurance Companies
g) FIIs
h) Foreign Venture Capital Funds
L2WKHUVVSHFLI\
International Finance 54,041,462 54,041,462 4.93 54,041,462 54,041,462 4.93 0
Corporation (Multi lateral
institution) &IFC FIG
INVESTMENT COMPANY
Sub-total (B)(1):- 57,535,522 57,535,522 5.25 57,535,522 57,535,522 5.25 0
2. Non-Institutions
a) Bodies Corp. 54,648,030 54,648,030 4.99 54,648,030 54,648,030 4.99 0
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders
holding nominal share capital
upto ` 1 lakh
ii) Individual shareholders holding
nominal share capital in excess of
` 1 lakh
c) Others (specify)
Sub-total (B)(2):- 54,648,030 54,648,030 4.99 54,648,030 54,648,030 4.99 0
Total Public Shareholding (B) = 112,183,552 112,183,552 10.24 112,183,552 112,183,552 10.24 0
(B)(1) + (B)(2)
C. Shares held by Custodian for - - - - - - - - -
GDRs & ADRs
*UDQG7RWDO$%&  1,095,141,034 1,095,141,034 100  1,095,141,034 1,095,141,034 100 0

69
 Aapka Bhala, Sabki Bhalai.

LL 6KDUHKROGLQJRI3URPRWHUV
Sl. Shareholder’s Shareholding at the beginning
Shareholding at the end of the year
No. Name of the year
% change in
No. of % of total % of Shares No. of Shares % of total % of Shares
shareholding
Shares Shares of Pledged/ Shares of Pledged/
during the
the company encumbered the company encumbered
year
to total to total
shares shares
1 Bandhan Financial 982,957,482 89.76 0 982,957,482 89.76 0 0
Holdings Limited
Total 982,957,482 89.76 0 982,957,482 89.76 0 0

LLL&KDQJHLQ3URPRWHUVo6KDUHKROGLQJSOHDVHVSHFLI\LIWKHUHLVQRFKDQJH

Sl. Shareholding at the beginning Cumulative Shareholding during
No. of the year the year
Bandhan Financial Holdings % of total shares % of total shares
1 No. of shares No. of shares
Limited of the company of the company
At the beginning of the year 982,957,482 89.76 982,957,482 89.76
Date wise Increase/ Decrease in Nil NA
Promoters Shareholding during
the year specifying the reasons for
increase/decrease (e.g. allotment/
transfer/bonus/ sweat equity etc):
At the End of the year 982,957,482 89.76

LY6KDUHKROGLQJ3DWWHUQRIWRSWHQ6KDUHKROGHUVRWKHUWKDQ'LUHFWRUV3URPRWHUVDQG+ROGHUVRI
*'5VDQG$'5V
Sl. Shareholding at the beginning Cumulative Shareholding
Caladium Investment Pte. Ltd
No. of the year during the year
For Each of the Top 10 % of total shares % of total shares
1 No. of shares No. of shares
Shareholders of the company of the company
At the beginning of the year 54,648,030 4.99 54,648,030 4.99
Date wise Increase/Decrease in Nil NA
Shareholding during the year
specifying the reasons for increase/
decrease (e.g. allotment/ transfer/
bonus/sweat equity etc):
At the End of the year (or on the 54,648,030 4.99
date of separation, if separated
during the year)

70
 Statuttorry rep
porrtss

81

Sl. International Finance Shareholding at the beginning of Cumulative Shareholding

No. Corporation the year during the year
For Each of the Top 10 % of total shares % of total shares
2 No. of shares No. of shares
Shareholders of the company of the company
At the beginning of the year 54,041,462 4.93 54,041,462 4.93
Date wise Increase/Decrease in 35,126,951 3.21 35,126,951 3.21
Shareholding during the year (Transfer of
specifying the reasons for increase/ 18,914,511
decrease (e.g. allotment/ transfer/ shares to IFC FIG
bonus/sweat equity etc): Investment
Company I on
11.05.2016)
At the End of the year (or on the 35,126,951 3.21
date of separation, if separated
during the year)

Sl. Small Industries Development Shareholding at the Cumulative Shareholding

No. Bank of India beginning of the year during the year
For Each of the Top 10 % of total shares % of total shares
3 No. of shares No. of shares
Shareholders of the company of the company
At the beginning of the year 3,494,060 0.32 3,494,060 0.32
Date wise Increase/Decrease in Nil NA
Share holding during the year
specifying the reasons for increase/
decrease (e.g. allotment/ transfer/
bonus/sweat equity etc):
At the End of the year (or on the 3,494,060 0.32
date of separation, if separated
during the year)

Sl. Shareholding at the Cumulative Shareholding

IFC FIG Investment Company I
No. beginning of the year during the year
For Each of the Top 10 % of total shares % of total shares
4 No. of shares No. of shares
Shareholders of the company of the company
At the beginning of the year 18,914,511 1.73 18,914,511 1.73
Date wise Increase/Decrease in 18,914,511 1.73
Shareholding during the year (Transfer of
specifying the reasons for increase/ 18,914,511
decrease (e.g. allotment/ transfer/ shares from IFC
bonus/sweat equity etc): on 11.05.2016)
At the End of the year (or on the 18,914,511 1.73
date of separation, if separated
during the year)

71
 Aapka Bhala, Sabki Bhalai.

Y 6KDUHKROGLQJRI'LUHFWRUVDQG.H\0DQDJHULDO3HUVRQQHO
Sl. Mr. Chandra Shekhar Ghosh, Shareholding at the beginning of Cumulative Shareholding during
No. 0DQDJLQJ'LUHFWRU &(2 the year the year
(holding for and on behalf
of Bandhan Financial
Holdings Limited)
For Each of the Directors No. of shares % of total shares No. of shares % of total shares
and KMP of the company of the company
At the beginning of the year 1 0.00 1 0.00
Date wise Increase / Decrease in
Shareholding during the year
specifying the reasons for increase /
decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):
At the End of the year 1 0.00

V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment (` in lakh)

Secured Loans
Unsecured Total
Particulars excluding Deposits
Loans Indebtedness
deposits
Indebtedness at the beginning of the
ƬQDQFLDO\HDU
i) Principal Amount 227,498.09 77,666.67 1,208,874.81 1,514,039.57
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 174.99 1,823.21 405.68 2,403.88
7RWDOLLLLLL 227,673.08 79,489.88 1,209,280.49 1,516,443.45
Change in Indebtedness during the -
ƬQDQFLDO\HDU
• Addition - - 1,113,585.30 1,113,585.30
• Reduction 175,778.44 27,120.45 - 202,897.87
Net Change (175,778.44) (27,120.45) 1,113,585.30 910,687.43
Indebtedness at the end of the
ƬQDQFLDO\HDU
i) Principal Amount 51,893.84 51,000 2,322,865.79 2,425,759.63
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 0.80 1,369.43 - 1,371.25
7RWDOLLLLLL 51,894.64 52,369.43 2,322,865.79 2,427,129.86

72
 Statuttorry rep
porrtss

81

9,5(081(5$7,212)',5(&7256$1'.(<0$1$*(5,$/3(56211(/
$ 5HPXQHUDWLRQWR0DQDJLQJ'LUHFWRU:KROHWLPH'LUHFWRUVDQGRU0DQDJHU
1 Gross salary `16,843,680 ` 16,843,680
Salary as per provisions contained in section N.A. N.A. N.A.
17(1) of the Income-tax Act, 1961
Value of perquisites u/s 17(2) Income-tax Perquisites - Nil Perquisites - Nil
Act, 1961
3URƬWVLQOLHXRIVDODU\XQGHUVHFWLRQ
Income-tax Act, 1961
2. Stock Option
3. Sweat Equity N.A. N.A. N.A.
4. Commission
DVRISURƬW
others, specify...
5. Others, please specify ` 2,625,000 ` 2,625,000
(Performance based Variable Pay)
7RWDO$ ` 19,468,680 ` 19,468,680
Ceiling as per the Act RI1HW3URƬW

% 5HPXQHUDWLRQWRRWKHUGLUHFWRUV`LQODNK

Sl. Total
Particulars of Remuneration Name of Directors
No. Amount
1. Independent Directors Shri. Ashok Shri. S K Shri. Bhaskar Shri. Chintaman Shri. Boggarapu Shri. Pradip Prof. Krishnamurthy Shri. Snehomoy Smt. T.S Raji
Kumar Lahiri Chakrabarti Sen Mahadeo Dixit Sambamurthy Kr Saha Venkata Subramanian Bhattacharya Gain
Fee for attending Board 3.4 2.6 3.4 2.9 3.1 2.9 2.6 2.6 3.4
Meetings
Committee meetings 0.6 2.85 4.65 1.65 2.85 2.4 2.4 1.8 1.05
Commission
Others, please specify

Total (1) 4 5.45 8.05 4.55 5.95 5.3 5 4.4 4.45 47.15
2. Other Non-Executive Mr. Holger Shri. Chandra Mr. Ranodeb Roy Ms. Georgina
Directors Dirk Michaelis Shekhar Elizabeth Baker
(Caladium Ghosh (IFC)
Investment
Pte Ltd)
Fee for attending Board 2.6 0 2.5 1.5
Meetings
Committee meetings 0 0 1.5 0
Commission
Others, please specify
Total (2) 2.6 0 4 1.5 8.1
Total (B) = (1 + 2) 55.25
Total Managerial 205.25
Remuneration
Overall Ceiling as per the Act 1% of Net
3URƬW

&5HPXQHUDWLRQWR.H\0DQDJHULDO3HUVRQQHORWKHUWKDQ0'0DQDJHU:7'

73
 Aapka Bhala, Sabki Bhalai.

Sl.
Particulars of Remuneration Key Managerial Personnel
No.
Company
Manager &)2 Total
Secretary
1. Gross salary (`)
Salary as per provisions contained in 2,023,822 7,026,131 9,049,954
section 17(1) of the Income-tax Act,
1961
Value of perquisites u/s 17(2) Perquisites - Nil Perquisites - Nil Perquisites - Nil
Income-tax Act, 1961
3URƬWVLQOLHXRIVDODU\XQGHUVHFWLRQ
17(3) Income-tax Act, 1961
2. Stock Option Nil Nil Nil
3. Sweat Equity Nil Nil Nil
4. &RPPLVVLRQDVRISURƬWRWKHUV Nil Nil Nil
specify...
5. Others, please specify 311,313 1,496,305 1,807,618
(Performance based Variable Pay)
7RWDO`) 2,335,135 8,522,437 10,857,572

9,,3(1$/7,(6381,6+0(17&203281',1*2)2))(1&(6
Details of Penalty/
Authority
Section of the Brief Punishment/ Appeal made, if
Type [RD/NCLT/
Companies Act Description Compounding fees any (give Details)
&2857@
imposed
$&RPSDQ\
Penalty
Punishment
Compounding
DIRECTORS
Penalty
Punishment
Compounding
&2WKHU2ƯFHUV,Q'HIDXOW Nil
Penalty
Punishment
Compounding

For and on behalf of the Board of Directors

Bandhan Bank Limited

Chairman
Place: Kolkata Ashok Kumar Lahiri
Date : 26th April, 2017 (DIN: 07234290)

74

Management Discussion & Analysis Report
2YHUDOO(FRQRPLFDQG,QGLDQ%DQNLQJ
6FHQDULR$Q2YHUYLHZ
$ *OREDO(FRQRPLF6FHQDULR
1. ,QWKH:RUOG(FRQRPLF2XWORRNXSGDWHRI-DQXDU\
2017, the International Monetary Fund (IMF) has
hinted towards an uptick in economic activity in 2017
and 2018, especially in the Emerging Markets and
Developing Economies (EMDEs). Global growth rate,
driven by emerging markets, is expected to be
approximately 3.6 per cent in 2018, up from 3.1 per
cent and 3.4 per cent in 2016 and 2017, respectively.1
Given that the new US administration is in its early
stages, there is some uncertainty attending this
forecast of global growth.
 .H\IDFWRUVLQƮXHQFLQJJOREDOJURZWKWUHQGVDUH
DVIROORZV IURPWZRVRXUFHV3
a. Acceleration of growth in emerging markets. The
favorable trend can be attributed to a gradual
normalisation of conditions in several large
emerging economies that have experienced
macroeconomic strain in the recent past.
b. Steepening US yield curve and strengthening of
the US dollar against major currencies. The newly
appointed US administration has put in place
QHDUWHUPƬVFDOVWLPXOXVPHDVXUHVZKLFKDUH
having an impact on the US yield curve and
strengthening the US dollar.
c. Firming up of oil prices following the agreement
among OPEC members and other major oil
producers to limit global supply.
 $FFRUGLQJWRWKH,0)WKHLPSRUWDQWWDNHDZD\VDUH2 
a. Growth in developed economies is expected to
improve but remains moderate, weighed down
by weak investment and policy uncertainty.
b. Commodity exporters can expect marginal
recovery in growth as commodity prices trend
KLJKHUDQGLQƮDWLRQDU\SUHVVXUHVPRGHUDWH
1
http://www.imf.org/en/Publications/WEO/Issues/2016/12/27/A-Shifting-Global-Economic-Landscape
2
KWWSVZZZXQRUJGHYHORSPHQWGHVDGSDGZSFRQWHQWXSORDGVVLWHVSXEOLFDWLRQZHVSBNH\ƬQGLQJVSGI
3
KWWSƬQPLQQLFLQLQGLDEXGJHWHVHFKDSWHUSGI
Statuttorry rep
porrtss
81
Annexure - 6
c. East and South Asia will remain the world’s
PDMRUG\QDPLFUHJLRQVEHQHƬWLQJIURP
robust domestic demand and supportive
macroeconomic policies.
% ,QGLDQ(FRQRPLF6FHQDULR
1. The United Nations World Economic Situation and
Prospects (WESP) 2017 forecasts India will grow at
approximately 7.6 per cent in FY 2017-18. In terms
of growth, India continues to lead the EMDEs on
the back of sustained high private consumption
levels and the steady introduction of domestic
reforms, such as the Goods and Services Tax (GST).
 *RYHUQPHQWRI,QGLDoV(FRQRPLF6XUYH\
LQGLFDWHVDERRVWLQFRQVXPSWLRQLQ

a. Catch-up after the demonetisation-induced
reduction in the last two quarters of 2016-17.
b. Cheaper borrowing costs, down from 2016-17 by
75 to 100 basis points, stimulating spending on
housing, consumer durables and semi-durables.
3. While the Indian Meteorological Department
forecasts a normal monsoon in 2017, there is a risk of
an El Niño weather pattern surfacing during
September 2017, thereby hampering the normal
monsoon cycle. Realisation of this risk has the danger
of lower growth and higher commodity prices
4. 7KH(FRQRPLF6XUYH\LQGLFDWHVWKUHHPDMRUULVNVWKDW
FRXOGGHUDLOWKHFRXQWU\oVJURZWKIRUHFDVW
 D 0HGLXPWRORQJWHUPHƪHFWVRIGHPRQHWL]DWLRQ
b. Probable increase in oil prices linked to geo-
SROLWLFDOLQƬUPLWLHVDQGWKHGHFLVLRQRIWKH23(&
to ration oil supply.
c. Flight of capital from EMDEs owing to trade
tensions amongst major countries as a result of
geo-political headwinds and currency pressures.
75
 Aapka Bhala, Sabki Bhalai.
 2QWKHƬVFDOIURQWWKHOLNHO\IDFWRUVZLWKD
EHDULQJRQWKHRXWORRNIRUWKHQH[WƬQDQFLDO
\HDUDUH prospect for further growth acceleration, India’s
a. Plateauing of, or reduction in, the tax-GDP ratio
as oil prices correct.
b. Increased income disclosure leading to higher
tax collection through Pradhan Mantra Garib
Kalyan Yojana (PMGKY) scheme, and windfall
from un-returned high denomination notes.
c. Enhanced revenue collection due to
implementation of GST.
6. Overall, the Indian economic scenario continues to be
encouraging. In spite of a lull in private investment
expenditure, domestic demand fueled by consumption
expenditure continues to be buoyant. Softer global oil
prices have yielded and continue to yield rich dividends
in terms of lower import bill as well as moderate
LQƮDWLRQ7KHXQFHUWDLQW\LVQRWVRPXFKDERXW
whether the Indian economy will be able to sustain
growth rates of 7-8 per cent per year, but whether it
will be able to ratchet up the growth rate to 9-10 per
cent on a sustained basis as China did for a number of
\HDUVDQGDV+RQoEOH)LQDQFH0LQLVWHU$UXQ-DLWOH\
wants4. Growth acceleration can take place only with
& ,QGLDQ%DQNLQJ,QGXVWU\'HYHORSPHQWV
1. With moderately high growth in the economy and
banking sector is poised for robust growth. Rapidly
growing businesses would turn to banks for meeting
their credit needs. Aware of this, the banking industry
in India is going through a rapid transformation,
particularly in the application of information
technology and digital banking.
Banks are bolstering their technological infrastructure
to bring advanced banking services to meet the needs
of their customers. Technology is allowing banks to
provide its customers a seamless banking experience at
the place of the customer’s choice, i.e., their place, at
one of its branches or wherever they are when on the
move. It is technology that provides a bank in India a
FRPSHWLWLYHHGJHLQWHUPVRIGLƪHUHQWLDWLQJSURGXFWV
and services. Bank deposits have grown faster than the
economy as per an RBI weekly report of March 17, 2017,
the aggregate deposit for the Indian banking sector
stood at ` 1,05,420.50 billion, which represents a
growth of 13 per cent on a year-on-year basis. The
aggregate deposit comprises demand deposits at
` 11,612.30 billion, and time deposits at ` 93,808.10
billion.5 A part of this buoyant growth in deposits was
because of the withdrawal of legal tender status of
sustained reforms and a supportive global economic
environment. The reform initiatives of the Government
in terms of the proposed introduction of GST,
adherence to the Fiscal Responsibility and Budget
Management Act, emphasis on infrastructure such as
roads and power, subsidy rationalisation, and
disinvestment bodes well in this regard. Much will
depend also on how soon private investment can be
stimulated, partly through solving what has been called
‘the twin balance sheet problem’ – namely problem
with the balance sheets of both some corporate houses
and their creditor public sector banks (PSB). Stressed
DVVHWVLQ36%VDUHDOVRDVLJQLƬFDQWVWUDLQRQWKH
ƬQDQFLDOV\VWHP5HVROXWLRQRIEDGRUQRQSHUIRUPLQJ
ORDQVLVLPSRUWDQWIRUUHVWDUWLQJOHQGLQJE\WKHDƪHFWHG
banks, stimulating investment and reviving high
growth. Both the Government of India and the Reserve
Bank of India (RBI) are seized of this matter.
Achievement of high growth will also depend on a
conducive global economic condition in general and
DYRLGDQFHRIVXGGHQƮDUHXSLQLQWHUQDWLRQDORLOSULFHV
and protectionist tendencies among developed
countries vis-à-vis international trade.
4
p,QGLDQHHGVVXVWDLQHG*'3JURZWKRISHUFHQW-DLWOH\q5HXWHUV0DUFKhttp://www.reuters.com/article/
us-india-economy-jaitley-idUSKBN0LY2MK20150302
5
https://www.ibef.org/industry/banking-india.aspx
76
VSHFLƬHGEDQNQRWHV6%1QDPHO\GHQRPLQDWLRQVRI
` 500 and ` 1,000 already issued, on November 08,
2016. The SBNs could be deposited in bank accounts,
but they could be exchanged for other currency notes,
or withdrawn after depositing in the accounts only in
limited quantities because of cash shortage for several
weeks. As a result, there was a bulge in deposits at the
end of 2016. With disappearance of the cash shortage,
some of these deposits are unwinding into cash, but a
part of the increase in deposits relative to currency is
likely to persist with the boost that the temporary cash
shortage gave to less cash-intensive payments through
digital means.
2. Indian banks’ credit growth, however, was
considerably slower than the growth of the economy
as well as deposits. Aggregate bank credit at
` 75,656.70 billion on March 17, 2017 was only 4.4 per
FHQWKLJKHUWKDQWKHFRUUHVSRQGLQJƬJXUHD\HDUDJR
The sluggish growth of bank credit, which comprises of
food and non-food credit, reveals the sluggish
investment in the economy as well as the stressed
assets on the balance sheet of banks, particularly PSBs.

3. The currency-deposit ratio, while on a downward
trend, continues to be high relative to many developed
and developing countries. Withdrawal of legal tender
status of SBN, namely denominations of ` 500 and
` 1,000 already issued, on November 08, 2016 may
have given a boost to less cash-intensive digital
payment mechanisms and accelerated the downward
trend in the currency-deposit ratio. It appears to have
promoted the usage of digital channels (also known as
Alternate channels) such as Internet and mobile
banking and debit cards. Direct account-to-account
based payment solutions are visible along with
initiatives to bring merchants and end customers on to
Aadhaar-based payment services.
4. Underperforming loans remain a cause for worry with
banks, particularly some public sector banks. With
global geo-political headwinds such as United
Kingdom’s planned withdrawal from the European
Union or the Brexit, and the US policy stance under a
new government, it was an unusual year for the
banking sector all over the world, including India. The
dominant themes for the Indian banking sector are6 :
 D ,QWURGXFWLRQRIQHZEDQNLQJHQWLWLHV
  7
 ZRQHZHQWLWLHVsVPDOOƬQDQFHEDQNVDQGSD\PHQW
banks – have been introduced in the Indian banking
VHFWRU6PDOOƬQDQFHEDQNVZLWKPLQLPXPFDSLWDORI
` 100 crore are allowed to accept deposits and lend
mainly up to ` 25 lakh (50 per cent of the total) and
to the priority sector (75 per cent of the total).
Payment banks can accept demand deposits (up to
Statuttorry rep
porrtss
81
 F %DG/RDQV
Bad loans or non-performing assets (NPA) are
DVVHWVRIEDQNVWKDWGRQRWJHQHUDWHFDVKƮRZV
to the extent and in the period originally
envisaged. Gross NPA as a proportion of gross
advances of the Indian banking sector has more
than doubled from 3.2 per cent (` 2.64 trillion)
in 2012-13 to 7.5 per cent (` 6.1 trillion) in
2015-16.7 According to the rating agency ICRA,
it is likely to go up further to 9.7-10.0 per cent
(` 7.5-7.7 trillion) by end-March 2017 and
9.9-10.3 per cent (` 8.2-8.5 trillion) by end-
March 2018. Growing NPA problem has
reduced the capital adequacy of some banks
perilously close to the regulatory minimum, and
is discouraging further credit extension.
RBI has taken several initiatives to ameliorate the
problem of NPA in banks. In February 2014, it
introduced “Framework for Revitalising Distressed
$VVHWVLQWKH(FRQRP\s*XLGHOLQHVRQ-RLQW
/HQGHUVq,Q-XO\WKHƮH[LEOHUHƬQDQFHDQG
repayment option for long gestation infrastructure
projects followed. Popularly known as the 5:25
scheme, it allowed banks to extend long-term
ORDQVRI\HDUVWRPDWFKWKHFDVKƮRZRI
LQIUDVWUXFWXUHSURMHFWVDQGUHƬQDQFHWKHPHYHU\
ƬYHRUVHYHQ\HDUV,WV$VVHW4XDOLW\5HYLHZ
initiated in early 2015-16 improved the recognition
of NPAs and provisioning for such assets. It
introduced the Strategic Debt Restructuring (SDR)
VFKHPHLQ-XQHDQGWKHVXVWDLQDEOH
`ODNKRƪHUUHPLWWDQFHVHUYLFHVPRELOH
payments/transfers/purchases and other banking
services like ATM/debit cards, net banking and third
party fund transfers, but cannot advance loans or
issue credit cards. With licenses granted to ten and
HLJKWHQWLWLHVWRRSHUDWHVPDOOƬQDQFHEDQNVDQG
payment banks, respectively, competition is likely to
heat up in the Indian banking industry.
 E &RQVROLGDWLRQ
The recent merger of the State Bank of India (SBI)
ZLWKƬYHRILWVVXEVLGLDULHVKDVUHVXOWHGLQLWV
combined balance sheet of almost ` 37 trillion,
and catapulted it into the league of top 50 banks
in the world. While the impact of the merger on
VWUXFWXULQJRIVWUHVVHGDVVHWV6$LQ-XQH
Though generation of fresh NPA has been slowing
down, the stock continues to grow in spite of such
initiatives. Non-performing assets continue to be a
cause of concern.
 G 'LJLWDO(FRQRP\
The gradual move from cash-based payments to
digital channels got a boost from the withdrawal
of legal tender status of SBN, namely
denominations of ` 500 and ` 1,000 already
issued, on November 08, 2016. The government
is leading the agenda on the use of digital
channels to make payments. Internet and mobile
banking usage, the use of debit cards, and, with
HƯFLHQF\LVEHLQJNHHQO\ZDWFKHGIXUWKHU WKH8QLƬHG3D\PHQW,QWHUIDFH83,8 facility,
consolidations in the Indian banking industry are direct transfers between merchants and end
expected during the coming year. customers are gaining steam.

6
http://www.livemint.com/Opinion/GivShcwWLIDCF7w0RpmIrO/Six-banking-trends-to-watch-out-for-in-2017.html
7
“Indian Banking Sector at a Glance,” under Statistical Tables Relating to Banks, RBI, https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications
8
UPI is is a payment system launched by National Payments Corporation of India and regulated by the Reserve Bank of India which facilitates the
instant fund transfer between two bank accounts on the mobile platform

77
 Aapka Bhala, Sabki Bhalai.
%DQGKDQ%DQNoV2SHUDWLRQV
Your Bank’s journey from doing only micro-banking
operations to becoming a universal bank continues with
newly designed products and services to meet the banking
needs of diverse customer segments.
$ 3HUIRUPDQFHRI*HQHUDO%DQNLQJ
• 'HSRVLWV
1. In 19 months of its operation, the Bank’s branch
distribution network has been scaled up to 840
on March 31, 2017. The branch network has been
GLVWULEXWHGRYHUGLƪHUHQWW\SHVRIORFDWLRQVWR
maintain an appropriate balance among rural
(banked and unbanked), semi-urban, urban and
metropolitan regions.
Bandhan Bank: Branch Distribution
Network, March 31, 2017 % establish itself as a ‘one stop shop’ – a provider of
Urban - 27 Semi-Urban - 25
Unbanked Metro - 15
Rural Areas - 23
Rural (With Banks) - 10
2. Overall deposits grew by 92 per cent during 2016-17
(Table 1). The composition of the deposits indicate
that your Bank has been able to reduce its funding
through bulk term deposits, and also increase its
current account deposits.
78
Table 1. Deposits of Bandhan Bank
(` in crore)
At end-March
Type of deposit
2016 2017
Total 12,089 23,229
Of which:
Current account 235 1,453
Savings account 2,371 5,385
Term deposits 9,484 16,405
Of which:
Retail term deposit 1,982 9,577
Bulk term deposit^ 7,501 6,814
^ Term deposit of ` 1 crore and above
• 'LJLWDO3D\PHQW&KDQQHOV
Your Bank is working in a focussed manner to
DQDUUD\RIƬQDQFLDOVHUYLFHVVXFKDVYDULRXV
deposit products, debit cards, and bill payments
facility. It has a multichannel servicing strategy
through ATMs, internet, phone and mBandhan
(mobile banking) in addition to its branch network.
Its digital channels, e.g., debit cards, internet
banking, mBandhan, which had been introduced at
the time of inception of Bank in August 2015 got a
ƬOOLSDIWHUWKHZLWKGUDZDORIOHJDOWHQGHUVWDWXVRI
SBN, namely denominations of ` 500 and ` 1,000
already issued, on November 08, 2016 and the
cash shortage in its immediate aftermath.
mBandhan and Internet Banking witnessed robust
growth in registrations and usage. The Bank has
also undertaken focussed communication
initiatives through branches and social media to
SRSXODULVHRQJRLQJGHELWFDUGRƪHUV
3. In 2016-17, your Bank also established its
merchant acquiring business and started setting
up Point-of-Sale (PoS) terminals in major towns
and cities as well as comparatively smaller,
cash-intensive towns and villages. The electronic
data capture (EDC)-PoS terminals were rolled
out in December 2016. In the four months from
rollout to end-March 2017, the Bank received
7,885 applications, and for 5,734 of the
applicants was able to install EDC-PoS terminals
by March 31, 2017. Currently, on an average,
about 2,000 EDC-PoS applications are being
received per month.
 Statuttorry rep
porrtss

81

4. Going forward, in 2017-18, your Bank plans to
foray into the distribution of third party products
DVZHOO,QWKHƬUVWSKDVHWKHGLVWULEXWLRQRI
Mutual Funds through metro and urban
EUDQFKHVZLOOFRPPHQFHLQWKHƬUVWTXDUWHU
With the aim of increasing customer stickiness
by way of increased balances in customers’
account, investment in systematic investment
plans (SIPs) will be emphasised. Branches
LGHQWLƬHGIRUGLVWULEXWLRQRIPXWXDOIXQGVZLOO
have at least two employees who are duly
FHUWLƬHGIRUGLVWULEXWLQJVXFKIXQGV7KH%DQN
also plans to commence General Insurance
distribution vide a Corporate Agency License.
available in amounts between ` 1 lakh and ` 10
lakh. At end-March 2017, there were 91 credit
centres to assess and disburse SEL, and the total
SEL amount outstanding from 57,171 customers
was ` 1,054 crore.
9. The SEL business plan for 2017-18 proposes to
focus on the following to accentuate its
portfolio:
a. Loan disbursals in amounts less than
`1 lakh.
b. Expeditious processing of Loan proposals
with minimal documentation.
• 6PDOO 0HGLXP(QWHUSULVHV/RDQ60(
c. Additional Credit Centers in locations of
5. Your Bank has initiated its Small and Medium business potential.
(QWHUSULVHV60(ORDQEXVLQHVVWKURXJKƬYH
Asset Centers at Kolkata, Howrah, Burdwan,
Barasat, and Behrampur. At end-March 2017,
there were 71 SME borrowers with total loan
outstanding (including a small amount of bank
guarantees) of ` 106 crore.
6. The SME loans were subject to a minimum of ` 10
lakh and given as working capital, term loan, and
SURMHFWƬQDQFHIDFLOLWLHV)DFLOLWLHVH[WHQGHGWRWKH
SMEs included fund-based term loans and
overdraft facilities, as well as non-fund-based bank
guarantees. To minimise risk of default, the Bank
focussed on customers internally rated BB 1 to 4.
7. To build a solid SME customer base, the Bank
endeavored to pursue a focussed approach and
provide a service commitment to render timely,
adequate support. During 2016-17, the Bank
participated in MSME seminars, workshops and
trade fairs organised by RBI and State
Governments. Participation in such exhibitions
and trade fairs has also helped customers to
understand the importance of innovation,
marketing, technology and use of social media to
grow their businesses. Your Bank will strive to
increase the SME customer base during the
coming year by opening another 14 SME Asset
Centers across the country.
d. Risk management capabilities by enhancing
the early warning system model based
on holistic customer information and
development of advanced credit
rating tools.
e. Potential synergies in Trade Finance
business.
• Retail Assets
10. On March 31, 2017, the Bank had 14,927 retail
loan accounts with the total outstanding at
` 390.60 crore. Going forward, the Bank’s retail
loan book, with a focus on home loans and
personal Loans, is expected to grow rapidly.
The initiative will be supported by the multiple
SURGXFWRƪHULQJVDQGFURVVVHOOLQJWR
existing customers.
11. The primary reasons for focussing on retail
OHQGLQJDUHULVNGLYHUVLƬFDWLRQDYDLODELOLW\RID
business opportunity and a supportive
regulatory framework. Retail lending has the
advantage of the risk being spread out rather
than concentrated with a few individuals or
enterprises or sectors. The penetration of retail
lending in India is amongst the lowest in the
world. It is much higher not only in the
• 6PDOO(QWHUSULVH/RDQ6(/ developed world, but also in some of the
developing countries, especially South East Asia.
  <RXU%DQNDOVRVWDUWHGRƪHULQJ6PDOO(QWHUSULVH Retail lending holds considerable potential for
Loan (SEL), a new product in 2016-17. It is the banking sector.

79
 Aapka Bhala, Sabki Bhalai.
12. Priority Sector lending (PSL) norms of the RBI is
the major regulatory tool by which credit is
directed to sectors and activities considered
important for overall socio-economic
development. The PSL norms also aims to
establish a system that supports the availability
of retail loans to every strata of society. As per
PSL guidelines of RBI, vide Circular no RBI/2014-
15/573 dated April 23, 2015, housing loans to
individuals up to ` 28 lakh in metropolitan
centres (population above 10 lakh) and up to
` 20 lakh in other centres qualify as PSL provided
the total cost of the dwelling unit does not
exceed ` 35 lakh in metropolitan centres and
` 25 lakh in other centres. Also, loans for repair
and renovation of dwelling units up to ` 5 lakh in
metropolitan centres and ` 2 lakh in other
centres qualify for PSL.
13. Demand for housing loans is also likely to be
stimulated by the ‘Pradhan Mantri Awas Yojana
(Urban) – Housing for All Mission’ (PMAY) for
XUEDQDUHDVODXQFKHGRQ-XQH30$<
with the aim of ensuring that 2 crore houses are
built across the nation’s length and breadth by
2022, is being implemented by providing central
assistance to implementing agencies through
States and Union Territories. The Credit Linked
Subsidy Scheme under PMAY provides interest
subsidy on home loans taken by eligible urban
poor. The interest subsidy available to the
economically weaker sections (EWS), lower
income group (LIG), and middle income group
(MIG) for loans for acquisition or construction of
houses should work as an additional stimulus to
boost up the demand for housing loans and
open up a business opportunity for your Bank.
14. Your Bank has tied up with National Housing
Bank (NHB), one of the central nodal agencies
under the CLSS scheme, to cater to the needs of
(:6DQG/,*EHQHƬFLDULHV,WLVDOVRLQWKH
process of signing the MoU for the recently
launched CLSS scheme for MIG.
• *ROG/RDQV
In recent years, increasingly banks in India have
entered the gold loan business. Financial
institutions/banks have introduced innovative
lending products such as upfront collection of
interest for entire loan tenure. Gold loans are
emerging as a reliable and convenient source of
credit for low to mid income groups, as they are
80
made available with convenient procedures and
documentation. Gold loans, as a business for
Financial Institutions/banks, grew by around 60
per cent in 2011-12, and 45 per cent in 2012-13.
There was a slight softening of the growth rate
in 2013-14 due to decline in the international
gold prices, but such bank loans are expected to
grow at a compound annual rate of 15 per cent
over the next 5 years. The year 2016-17 marked
the entry of the Bank in the gold loan business.
On March 31, 2017, the Bank’s outstanding gold
loans to 314 customers was ` 1.66 crore.
% 3HUIRUPDQFHRI0LFUR%DQNLQJ
  0LFUREDQNLQJZLWKWKHDLPRIDFKLHYLQJƬQDQFLDO
inclusion is the cornerstone of your Bank’s
operations. While most other banks, after doing
general banking operations for years, are getting
into micro banking, Bandhan has followed the
bottom up approach – after a long and
VXFFHVVIXOH[SHULHQFHLQPLFURƬQDQFHLW
WUDQVIRUPHGLWVHOILQWRDEDQNDQGGLYHUVLƬHG
into general banking.
  <RXU%DQNoVFRPPLWPHQWWRƬQDQFLDOLQFOXVLRQLV
UHƮHFWHGLQWKHJURZWKRIRYHUSHUFHQWLQ
the aggregate micro-banking asset portfolio
from ` 15,436 crore to ` 21,387 crore during
2016-17. This growth was achieved through a
combination of broadening (opening new
Doorstep Service Centres) as well as deepening
(more loans to existing as well as new customers
in areas covered by already existing Doorstep
Service Centres).
3. The micro-banking loans continued to be in four
categories:
a. Suchana Loan - ` 1,000 to ` 25,000 (No
Processing Fee): Loan size is up to ` 25,000/-
and is sanctioned to Micro Banking
customers for deploying in eligible income
generating activities.
b. Srishti Loan - ` 25,000 to ` 100,000: Loan
size is above ` 25,000/- and is sanctioned to
Micro Banking customers for expanding
their business enterprise.
c. Suraksha Loan - up to ` 10,000: Loan size is
up to ` 10,000/- and is sanctioned to Micro
Banking customers to meet emergency
expenses due to health issues.

d. Susiksha Loan - up to ` 10,000: Loan size is
up to ` 10,000/- and is sanctioned to Micro
Banking customers to meet expenses
towards education of their children.
4. The withdrawal of legal tender status of SBNs
(i.e., ` 500 and ` 1000 notes of particular series)
on November 08, 2016 resulted in a cash
shortage in its immediate aftermath. Micro-
banking customers, who were dependent on the
cash economy for a major part of their
functioning, were adversely impacted in their
incomes. This impact on individual earnings had a
negative bearing on the servicing of micro-
banking loans by borrowers. As a result, overdue
borrower numbers have increased in the last
quarter of 2016-17. Your Bank’s micro-banking
ORDQVVORZHGVLJQLƬFDQWO\LQ1RYHPEHUDQG
December 2016.
  %DQGKDQDVDPLFURƬQDQFHLQVWLWXWLRQFRXOGQRW
garner deposits from its customers. Your Bank
can and did. It provided a safe, secure and
SURƬWDEOHDYHQXHIRULWVPLFUREDQNLQJ
customers to deploy their savings. A modest
beginning was made in 2016-17 by garnering
` 2,006.18 crore in aggregate deposits —
Statuttorry rep
porrtss
81
` 1,801.54 crore in current and savings account
deposits and ` 204.65 in term deposits – from
micro-banking customers.
6. The Board and Management are fully aware
that the key ingredients of success are going to
be the Bank’s appropriately skilled and
dedicated human resources. To build up a
robust pool of skilled manpower, the Bank
successfully conducted training programs at its
Learning Centre at Rajpur. Apart from Rajpur,
your Bank also has seven other training centres
at various locations. Together with training at
these centres, your Bank is committed to
building up a strong team spirit and sense of
ethics, and a customer-friendly attitude
throughout the organisation.
For and on behalf of the Board of Directors
Bandhan Bank Limited
Chairman
Place: Kolkata Ashok Kumar Lahiri
Date : 26th April, 2017 (DIN: 07234290)
81
 Aapka Bhala, Sabki Bhalai.

Independ
dentt Aud
ditorr’s Reporrt

WKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQDQG
To,
SHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXW
The Members of Bandhan Bank Limited
ZKHWKHUWKHƬQDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDO
PLVVWDWHPHQW
Report on the Financial Statements
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJƬQDQFLDOVWDWHPHQWV
$QDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLW
of Bandhan Bank Limited (“the Bank”), which comprise the
HYLGHQFHDERXWWKHDPRXQWVDQGGLVFORVXUHVLQWKH
%DODQFH6KHHWDVDW0DUFKWKH6WDWHPHQWRI
ƬQDQFLDOVWDWHPHQWV7KHSURFHGXUHVVHOHFWHGGHSHQGRQ
3URƬWDQG/RVVDQG&DVK)ORZ6WDWHPHQWIRUWKH\HDUWKHQ
WKHDXGLWRUoVMXGJPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKH
HQGHGDQGDVXPPDU\RIVLJQLƬFDQWDFFRXQWLQJSROLFLHV
ULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHƬQDQFLDOVWDWHPHQWV
DQGQRWHVWRWKHƬQDQFLDOVWDWHPHQWV
ZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVN
DVVHVVPHQWVWKHDXGLWRUFRQVLGHUVLQWHUQDOƬQDQFLDO
Management’s Responsibility for the FRQWUROUHOHYDQWWRWKH%DQNoVSUHSDUDWLRQRIWKHƬQDQFLDO
Financial Statements statements that give a true and fair view in order to design
7KH%DQNoV%RDUGRI'LUHFWRUVDUHUHVSRQVLEOHIRUWKH
audit procedures that are appropriate in the
PDWWHUVVWDWHGLQ6HFWLRQRIWKH&RPSDQLHV$FW
FLUFXPVWDQFHV
pWKH$FWqZLWKUHVSHFWWRWKHSUHSDUDWLRQRIWKHVH
ƬQDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZRIWKH
$QDXGLWDOVRLQFOXGHVHYDOXDWLQJWKHDSSURSULDWHQHVVRI
ƬQDQFLDOSRVLWLRQƬQDQFLDOSHUIRUPDQFHDQGFDVKƮRZVRI
DFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRIWKH
WKH%DQNLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6HFWLRQ
DFFRXQWLQJHVWLPDWHVPDGHE\WKH%DQNoV'LUHFWRUVDVZHOO
RIWKH%DQNLQJ5HJXODWLRQ$FWDQGDFFRXQWLQJ
DVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKHƬQDQFLDO
SULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDLQFOXGLQJWKH
VWDWHPHQWV:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYH
$FFRXQWLQJ6WDQGDUGVVSHFLƬHGXQGHUVHFWLRQRIWKH
REWDLQHGLVVXƯFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLV
$FWUHDGZLWK5XOHRIWKH&RPSDQLHV$FFRXQWV5XOHV
IRURXUDXGLWRSLQLRQRQWKHƬQDQFLDOVWDWHPHQWV
DQGWKH&RPSDQLHV$FFRXQWLQJ6WDQGDUGV
$PHQGPHQW5XOHVLQVRIDUDVWKH\DSSO\WRWKH%DQN
DQGWKH*XLGHOLQHVLVVXHGE\WKH5HVHUYH%DQNRI,QGLD
Opinion
In our opinion and to the best of our information and
7KLVUHVSRQVLELOLW\DOVRLQFOXGHVPDLQWHQDQFHRIDGHTXDWH
DFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVWKHDIRUHVDLG
accounting records in accordance with the provisions of
ƬQDQFLDOVWDWHPHQWVWRJHWKHUZLWKWKHQRWHVWKHUHRQJLYH
the Act for safeguarding of the assets of the Bank and for
WKHLQIRUPDWLRQUHTXLUHGE\WKH%DQNLQJ5HJXODWLRQ$FW
SUHYHQWLQJDQGGHWHFWLQJIUDXGVDQGRWKHULUUHJXODULWLHV
DVZHOODVWKH&RPSDQLHV$FWLQWKHPDQQHUVR
VHOHFWLRQDQGDSSOLFDWLRQRIDSSURSULDWHDFFRXQWLQJ
UHTXLUHGIRUWKHEDQNLQJFRPSDQLHVDQGJLYHDWUXHDQG
SROLFLHVPDNLQJMXGJPHQWVDQGHVWLPDWHVWKDWDUH
IDLUYLHZRIWKHVWDWHRIDƪDLUVRIWKH%DQNDVDW0DUFK
UHDVRQDEOHDQGSUXGHQWDQGWKHGHVLJQLPSOHPHQWDWLRQ
LWVSURƬWDQGLWVFDVKƮRZVIRUWKH\HDUHQGHGRQ
DQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDOƬQDQFLDOFRQWURO
WKDWGDWH
WKDWZHUHRSHUDWLQJHƪHFWLYHO\IRUHQVXULQJWKHDFFXUDF\
DQGFRPSOHWHQHVVRIWKHDFFRXQWLQJUHFRUGVUHOHYDQWWR
WKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHƬQDQFLDO
Report on Other Legal and Regulatory
statements that give a true and fair view and are free from
Requirements
 7KH%DODQFH6KHHWDQGWKH3URƬWDQG/RVV$FFRXQW
PDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
have been drawn up in accordance with the provisions
RI6HFWLRQRIWKH%DQNLQJ5HJXODWLRQ$FW
Auditor’s Responsibility UHDGZLWK6HFWLRQRIWKH&RPSDQLHV$FW
2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVH
DQGUHDGZLWK5XOHRIWKH&RPSDQLHV$FFRXQWV
ƬQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW:HKDYHWDNHQ
5XOHVDQGWKH&RPSDQLHV$FFRXQWLQJ
into account the provisions of the Act, the accounting and
6WDQGDUGV$PHQGPHQW5XOHV
DXGLWLQJVWDQGDUGVDQGPDWWHUVZKLFKDUHUHTXLUHGWREH
LQFOXGHGLQWKHDXGLWUHSRUWXQGHUWKHSURYLVLRQVRIWKH$FW
 $VUHTXLUHGVXEVHFWLRQRIVHFWLRQRIWKH
DQGWKH5XOHVPDGHWKHUHXQGHU:HFRQGXFWHGRXUDXGLW
%DQNLQJ5HJXODWLRQ$FWDQGWKHDSSRLQWPHQW
LQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJLVVXHGE\WKH
OHWWHUGDWHG$XJXVWZHUHSRUWWKDW
,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDDVVSHFLƬHG
XQGHU6HFWLRQRIWKH$FW7KRVH6WDQGDUGVUHTXLUH
 D :HKDYHREWDLQHGDOOWKHLQIRUPDWLRQDQG
H[SODQDWLRQVZKLFKWRWKHEHVWRIRXU

82
 Financcia
al sttatem
mentss

121

NQRZOHGJHDQGEHOLHIZHUHQHFHVVDU\IRUWKH RIWKHGLUHFWRUVLVGLVTXDOLƬHGDVRQ0DUFK
purpose of our audit and have found them to be IURPEHLQJDSSRLQWHGDVDGLUHFWRULQ
VDWLVIDFWRU\ WHUPVRIVHFWLRQRIWKH$FW

(b) The transactions of the Bank, which have come  I :LWKUHVSHFWWRWKHDGHTXDF\RIWKHLQWHUQDO

to our notice, have been within the powers of ƬQDQFLDOFRQWUROVRYHUƬQDQFLDOUHSRUWLQJRIWKH
WKH%DQNDQG %DQNDQGWKHRSHUDWLQJHƪHFWLYHQHVVRIVXFK
FRQWUROVUHIHUWRRXUVHSDUDWH5HSRUWLQ
 F 7KHƬQDQFLDODFFRXQWLQJV\VWHPVRIWKH%DQNDUH p$QQH[XUHqWRWKLVUHSRUW
FHQWUDOLVHGDQGWKHUHIRUHDFFRXQWLQJUHWXUQVIRU
WKHSXUSRVHRISUHSDULQJƬQDQFLDOVWDWHPHQWV  J :LWKUHVSHFWWRWKHRWKHUPDWWHUVWREHLQFOXGHG
DUHQRWUHTXLUHGWREHVXEPLWWHGE\WKH%DQN LQWKH$XGLWRUoV5HSRUWLQDFFRUGDQFHZLWK5XOH
EUDQFKHVZHKDYHYLVLWHGEUDQFKHVDQG RIWKH&RPSDQLHV$XGLWDQG$XGLWRUV5XOHV
'RRUVWHS6HUYLFH&HQWUHV'6&VDVVRFLDWHG LQRXURSLQLRQDQGWRWKHEHVWRIRXU
with the Bank branches, for the purpose of LQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQV
RXUDXGLW JLYHQWRXV

 $VUHTXLUHGE\VHFWLRQRIWKH$FWZHUHSRUW   L 7KH%DQNGRHVQRWKDYHDQ\SHQGLQJ

WKDW OLWLJDWLRQVZKLFKZRXOGLPSDFWLWVƬQDQFLDO
SRVLWLRQ
 D :HKDYHVRXJKWDQGREWDLQHGDOOWKHLQIRUPDWLRQ
DQGH[SODQDWLRQVZKLFKWRWKHEHVWRIRXU   LL 7KH%DQNGLGQRWKDYHDQ\ORQJWHUP
NQRZOHGJHDQGEHOLHIZHUHQHFHVVDU\IRUWKH FRQWUDFWVLQFOXGLQJGHULYDWLYHFRQWUDFWVIRU
SXUSRVHRIRXUDXGLW ZKLFKWKHUHZHUHDQ\PDWHULDOIRUHVHHDEOH
ORVVHV
(b) In our opinion proper books of account as
UHTXLUHGE\ODZKDYHEHHQNHSWE\WKH%DQNVR   LLL 7KHUHZHUHQRDPRXQWVZKLFKZHUH
IDUDVLWDSSHDUVIURPRXUH[DPLQDWLRQRIWKRVH UHTXLUHGWREHWUDQVIHUUHGWRWKH,QYHVWRU
ERRNV (GXFDWLRQDQG3URWHFWLRQ)XQGE\WKH%DQN

 F 7KH%DODQFH6KHHWWKH3URƬWDQG/RVV$FFRXQW   LY 7KHGLVFORVXUHUHTXLUHPHQWDVHQYLVDJHGLQ

DQG&DVK)ORZ6WDWHPHQWGHDOWZLWKE\WKLV 1RWLƬFDWLRQ*65(GDWHGWK0DUFK
Report are in agreement with the books of LVQRWDSSOLFDEOHWRWKH%DQN5HIHU
DFFRXQW 1RWHWRWKHƬQDQFLDOVWDWHPHQWV

 G ,QRXURSLQLRQWKHDIRUHVDLGƬQDQFLDOVWDWHPHQWV For S.R. Batliboi & Associates LLP

FRPSO\ZLWKWKH$FFRXQWLQJ6WDQGDUGVVSHFLƬHG &KDUWHUHG$FFRXQWDQWV
XQGHUVHFWLRQRIWKH$FWUHDGZLWK5XOHRI ,&$,)LUP5HJLVWUDWLRQ1XPEHU:(
WKH&RPSDQLHV$FFRXQWV5XOHVDQGWKH
&RPSDQLHV$FFRXQWLQJ6WDQGDUGV$PHQGPHQW 6G
5XOHV per Amit Kabra
Partner
(e) On the basis of written representations received 0HPEHUVKLS1XPEHU
IURPWKHGLUHFWRUVDVRQ0DUFKDQG 3ODFHRI6LJQDWXUH*XUJDRQ
taken on record by the Board of Directors, none 'DWHWK$SULO

83
 Aapka Bhala, Sabki Bhalai.

%DODQFH6
6KHH
HW
DVDW0DUFK

(`)
As at As at
Schedule
31 March 2017 31 March 2016
Capital & Liabilities
&DSLWDO   
5HVHUYHV 6XUSOXV   
Deposits   
Borrowings   
2WKHUOLDELOLWLHVDQGSURYLVLRQV   
Total 302,360,903,982 197,565,000,040
Assets
&DVKDQGEDODQFHVZLWK5HVHUYH%DQNRI,QGLD   
%DODQFHZLWK%DQNVDQG0RQH\DWFDOODQGVKRUWQRWLFH   
Investments   
Advances   
)L[HG$VVHWV   
Other Assets   
Total 302,360,903,982 197,565,000,040
&RQWLQJHQWOLDELOLWLHV   
%LOOVIRUFROOHFWLRQ  
6LJQLƬFDQW$FFRXQWLQJ3ROLFLHVDQG1RWHVWR$FFRXQWV  

6FKHGXOHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKH%DODQFH6KHHW

As per our report of even date

For S.R. Batliboi & Associates LLP For Bandhan Bank Limited
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:(

Per Amit Kabra Dr. A. K. Lahiri Chandra Shekhar Ghosh C.M. Dixit
Partner &KDLUPDQ 0DQDJLQJ'LUHFWRU &(2 Director
0HPEHUVKLS1XPEHU

3ODFH*XUJDRQ 3ODFH.RONDWD Indranil Banerjee Sunil Samdani

'DWH$SULO 'DWH$SULO &RPSDQ\6HFUHWDU\ &KLHI)LQDQFLDO2ƯFHU

84
 Financcia
al sttatem
mentss

121
3URƬW /
/RVV$FFFRXQWW
)RUWKH\HDUHQGHG0DUFK

(`)
Year ended Year ended
Schedule
31 March 2017 31 March 2016
I. Income
,QWHUHVWGLVFRXQWRQDGYDQFHVELOOV   
Other Income   
Total 43,201,225,916 17,312,544,765
II. Expenditure
,QWHUHVW([SHQGHG   
2SHUDWLQJ([SHQVHV   
3URYLVLRQV &RQWLQJHQFLHV   
Total 32,081,698,541 14,560,074,834
III. 1HW3URƬWIRUWKH\HDU,,,  
%DODQFHLQ3URƬW /RVV$FFRXQWEURXJKWIRUZDUGIURPSUHYLRXV  
year
IV. Amount available for appropriations  
V. Appropriation
7UDQVIHUWR6WDWXWRU\5HVHUYHV  
Transfer to Other Reserves  
7UDQVIHUWR*RYHUQPHQW5HVHUYH3URSRVHG'LYLGHQG  
7UDQVIHUWR&DSLWDO5HVHUYH  
%DODQFHFDUULHGRYHUWR%DODQFH6KHHW  
Total 13,273,340,509 2,758,230,337
VI. Earnings per Share
%DVLF 'LOXWHG`)   
)DFHYDOXHSHUVKDUH`)  
6LJQLƬFDQW$FFRXQWLQJ3ROLFLHVDQG1RWHVWR$FFRXQWV  

6FKHGXOHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKH3URƬWDQG/RVV$FFRXQW 

As per our report of even date

For S.R. Batliboi & Associates LLP For Bandhan Bank Limited
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:(

Per Amit Kabra Dr. A. K. Lahiri Chandra Shekhar Ghosh C.M. Dixit
Partner &KDLUPDQ 0DQDJLQJ'LUHFWRU &(2 Director
0HPEHUVKLS1XPEHU

3ODFH*XUJDRQ 3ODFH.RONDWD Indranil Banerjee Sunil Samdani

'DWH$SULO 'DWH$SULO &RPSDQ\6HFUHWDU\ &KLHI)LQDQFLDO2ƯFHU

85
 Aapka Bhala, Sabki Bhalai.

&DVK)
)ORZ
Z6
6WDWH
HPHQWW
IRU\HDUHQGHG0DUFK

(`)
Particulars 31 March 2017 31 March 2016
A. &DVKƮRZIURP2SHUDWLQJ$FWLYLWLHV
3URƬW%HIRUH7D[DWLRQ  
Adjustments for :
Depreciation and amortisation  
3URYLVLRQRQ6WDQGDUG$VVHWV  
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWV  
,QWHUHVWLQFRPHRQƬ[HGGHSRVLWV  
3URYLVLRQIRUGHSUHFLDWLRQLQYDOXHRILQYHVWPHQWV  
Provision for other contingencies  
/RVVRQ6DOHRI)L[HG$VVHWV  
2SHUDWLQJ3URƬW%HIRUH:RUNLQJ&DSLWDO&KDQJHV 18,600,437,485 4,985,266,372
Movements in working capital :
Increase in Advances  
Increase in Other Assets  
'HFUHDVH,QFUHDVHLQ,QYHVWPHQW  
Increase in Deposit  
,QFUHDVHLQ2WKHU&XUUHQW/LDELOLWLHVDQG3URYLVLRQV  
Cash generated from operations 94,666,653,331 72,477,567,930
'LUHFW7D[HV3DLG  
1HW&DVKƮRZVJHQHUDWHGIURP2SHUDWLQJ$FWLYLWLHV$ 88,851,937,078 69,495,955,092
B. &DVKƮRZIURP,QYHVWLQJ$FWLYLWLHV
3XUFKDVHRI)L[HG$VVHWV&DSLWDOZRUNLQSURJUHVV  
6DOHRI)L[HG$VVHWV&DSLWDOZRUNLQSURJUHVV  
3D\PHQWIRU%XVLQHVV$FTXLVLWLRQ  
,QWHUHVWLQFRPHRQƬ[HGGHSRVLWV  
,QFUHDVHLQ+HOGWR0DWXULW\,QYHVWPHQW  
'HSRVLWVFUHDWHGHQFDVKHGZLWKEDQNVDQGƬQDQFLDOLQVWLWXWLRQV  
1HW&DVKƮRZVXVHGLQ,QYHVWLQJ$FWLYLWLHV%  
C. &DVKƮRZIURP)LQDQFLQJ$FWLYLWLHV
3URFHHGVIURPVKDUHLVVXH,QFOXGLQJVKDUHSUHPLXP  
6KDUHLVVXHH[SHQVHV  
Repayment of borrowings  
1HW&DVKƮRZVXVHGLQ)LQDQFLQJ$FWLYLWLHV&  
1HW'HFUHDVHLQ&DVKDQG&DVK(TXLYDOHQWV$%& 41,915,863,113 
Cash and Cash Equivalents at the Beginning of the year  
$GG&DVK$FTXLUHGRQDFTXLVLWLRQRIDVVHWVDQGOLDELOLWLHVIURP%)6/  
Cash And Cash Equivalents at the end of the year 73,647,333,047 31,731,469,934
Components of Cash and Cash Equivalents :
&DVKDQG%DODQFHVZLWK5HVHUYH%DQNRI,QGLD5HIHUVFKHGXOH  
%DODQFHZLWK%DQNVDQG0RQH\DWFDOODQGVKRUWQRWLFH5HIHUVFKHGXOH  
73,647,333,047 31,731,469,934

&DVKDQG&DVK(TXLYDOHQWVH[FOXGHV)L[HG'HSRVLWVRI`3UHYLRXV<HDU`ZLWKRULJLQDOPDWXULW\RIPRUH

WKDQWKUHHPRQWKV
7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVHƬQDQFLDOVWDWHPHQWV   
As per our report of even date
For S.R. Batliboi & Associates LLP For Bandhan Bank Limited
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:(
Per Amit Kabra Dr. A. K. Lahiri Chandra Shekhar Ghosh C.M. Dixit
Partner &KDLUPDQ 0DQDJLQJ'LUHFWRU &(2 Director
0HPEHUVKLS1XPEHU
3ODFH*XUJDRQ 3ODFH.RONDWD Indranil Banerjee Sunil Samdani
'DWH$SULO 'DWH$SULO &RPSDQ\6HFUHWDU\ &KLHI)LQDQFLDO2ƯFHU

86
 Financcia
al sttatem
mentss

121
Schedule
es
forming part of the Balance Sheet as at 31 March 2017

6FKHGXOH&DSLWDO 
(`)
As at As at
31 March 2017 31 March 2016
Authorised Capital
3UHYLRXV<HDUHTXLW\VKDUHVRI`HDFK  
Issued, subscribed and fully paid-up capital
3UHYLRXV<HDU(TXLW\6KDUHRI`HDFK  
Total 10,951,410,340 10,951,410,340

6FKHGXOH5HVHUYHV 6XUSOXV
(`)
As at As at
31 March 2017 31 March 2016
l. Statutory Reserve
2SHQLQJ%DODQFH  
Additions during the year  
Deduction during the year  
Total 3,469,439,428 689,557,584
ll. Capital Reserve
2SHQLQJ%DODQFH  
Additions during the year *  
Deduction during the year  
Total 9,111,289 -
lll. Share Premium Account
2SHQLQJ%DODQFH  
Additions during the year  
/HVV6KDUHLVVXHH[SHQVHV  
Total 19,550,245,484 19,550,245,484
lV. Revenue & other Reserves
2SHQLQJ%DODQFH  
Additions during the year  
Deduction during the year  
Total  -
V. %DODQFHLQ3URƬWDQG/RVV$FFRXQW  
$GMXVWPHQWRQDFTXLVLWLRQRIDVVHWV OLDELOLWLHVIURP%DQGKDQ)LQDQFLDO  
6HUYLFHV/WG
$GMXVWPHQWIRUGHIHUUHGWD[DVVHWVRQVWDQGDUGDVVHWVSURYLVLRQDFTXLUHG  
IRUP%DQGKDQ)LQDQFLDO6HUYLFHV/WG
Total 10,484,347,376 2,153,813,134
*5$1'727$/,,,,,,,99 33,513,143,577 22,393,616,202
$SSURSULDWLRQVPDGHIRUSURƬWRQVDOHRILQYHVWPHQWVLQKHOGWRPDWXULW\FDWHJRU\QHWRIWD[HVDQGWUDQVIHUWRVWDWXWRU\UHVHUYH

87
 Aapka Bhala, Sabki Bhalai.

Schedule
es
forming part of the Balance Sheet as at 31 March 2017

6FKHGXOH'HSRVLWV  
(`)
As at As at
31 March 2017 31 March 2016
$ ODemand Deposits
i) )URP%DQNV  
ii) )URP2WKHUV  
OO 6DYLQJV%DQN'HSRVLWV  
OOO Term Deposits
i) )URP%DQNV  
ii) )URP2WKHUV  
Total 232,286,578,639 120,887,480,801
% O Deposits of branches in India  
OO Deposits of branches outside India  
Total 232,286,578,639 120,887,480,801

6FKHGXOH%RUURZLQJV  
(`)
As at As at
31 March 2017 31 March 2016
O Borrowings in India
i) Reserve Bank of India  
ii) Other banks  
iii) Other Institutions & agencies *  
OO Borrowings outside India  
Total 10,289,384,196 30,516,475,970
6HFXUHGERUURZLQJVLQFOXGHGLQ,LL LLLDERYH 5,189,384,194 22,749,809,302
%RUURZLQJVIURPRWKHULQVWLWXWLRQVDQGDJHQFLHVLQFOXGHV6XERUGLQDWHG'HEWRI`3UHYLRXV<HDU`LQWKHQDWXUHRI
1RQ&RQYHUWLEOH'HEHQWXUHV

6FKHGXOH2WKHUOLDELOLWLHVDQGSURYLVLRQV  
(`)
As at As at
31 March 2017 31 March 2016
O %LOOV3D\DEOH  
OO ,QWHURƯFH$GMXVWPHQWV1HW  
OOOInterest accrued  
O9 &RQWLQJHQW3URYLVLRQDJDLQVW6WDQGDUG$VVHWV  
9 3URYLVLRQIRU,QFRPH7D[  
9O 2WKHUV>,QFOXGLQJ`3UHYLRXV<HDU`SD\DEOH  
IRU,%3&WUDQVDFWLRQV5HIHUQRWH1R@
Total 15,320,387,230 12,816,016,727

88
 Financcia
al sttatem
mentss

121
Schedule
es
forming part of the Balance Sheet as at 31 March 2017

6FKHGXOH&DVKDQGEDODQFHVZLWK5HVHUYH%DQNRI,QGLD
(`)
As at As at
31 March 2017 31 March 2016
O &DVK,QKDQG  
OO %DODQFHZLWK5HVHUYH%DQNRI,QGLD
i) ,Q&XUUHQW$FFRXQW  
ii) In Other Accounts  
Total 60,120,659,726 8,102,865,512

6FKHGXOH%DODQFHVZLWK%DQNVDQG0RQH\DWFDOODQGVKRUWQRWLFH  
(`)
As at As at
31 March 2017 31 March 2016
, In India
i) %DODQFHZLWK%DQNV
a) ,Q&XUUHQW$FFRXQW  
b) In Other Deposit Accounts  
ii) 0RQH\DWFDOO VKRUWQRWLFH
a) With banks  
b) With other institutions  
Total 13,529,327,194 23,631,129,422
,, Outside India  
Total  -
*5$1'727$/,,, 13,529,327,194 23,631,129,422

6FKHGXOH,QYHVWPHQWV  
(`)
As at As at
31 March 2017 31 March 2016
, Investment in India in
i) *RYHUQPHQW6HFXULWLHV  
ii) 2WKHU$SSURYHG6HFXULWLHV  
iii) 6KDUHV  
iv) Debentures & Bonds  
v) 6XEVLGLDULHVDQGRUMRLQWYHQWXUHV  
vi) Others  
Total 55,183,776,893 37,580,336,328
/HVV3URYLVLRQIRU'HSUHFLDWLRQRQ,QYHVWPHQW  
Total 55,164,872,304 37,580,336,328
,, Investments outside India  
Total  -
*5$1'727$/,,, 55,164,872,304 37,580,336,328

89
 Aapka Bhala, Sabki Bhalai.

Schedule
es
forming part of the Balance Sheet as at 31 March 2017

6FKHGXOH$GYDQFHV  
(`)
As at As at
31 March 2017 31 March 2016
$ i) %LOOV3XUFKDVHG 'LVFRXQWHG  
ii) &DVKFUHGLWVRYHUGUDIWVDQGORDQVUHSD\DEOHRQGHPDQG  
iii) 7HUPORDQV  
Total 168,390,778,586 124,375,461,153
1HWRIORDQVRXWVWDQGLQJXQGHU,QWHUEDQNSDUWLFLSDWLRQFHUWLƬFDWH`3UHYLRXV<HDU`DQG
assignment `3UHYLRXV<HDU`
% i) 6HFXUHGE\WDQJLEOHDVVHWV,QFOXGLQJ$GYDQFHVDJDLQVWERRNGHEWV  
ii) &RYHUHGE\%DQN*RYHUQPHQW*XDUDQWHHV  
iii) Unsecured  
Total 168,390,778,586 124,375,461,153
& I) Advances in India
i) 3ULRULW\6HFWRU  
ii) 3XEOLF6HFWRU  
iii) Banks  
iv) Others  
Total 168,390,778,586 124,375,461,153
II) Advances Outside India 
Total  -
*5$1'727$/,,, 168,390,778,586 124,375,461,153

6FKHGXOH)L[HG$VVHWV  
(`)
As at As at
31 March 2017 31 March 2016
, Premises
Gross Block
$WFRVWDVDW0DUFKRIWKHSUHFHGLQJ\HDU  
$GGLWLRQGXULQJWKH<HDU  
'HGXFWLRQGXULQJWKH<HDU  
Total 1,227,778,316 989,255,742
Depreciation
$VDWWKHEHJLQQLQJRIWKH<HDU  
&KDUJHIRUWKH\HDU  
'HGXFWLRQGXULQJWKH<HDU  
Depreciation to date 280,179,281 58,157,931
Net Block 947,599,035 931,097,811

90
 Financcia
al sttatem
mentss

121
Schedule
es
forming part of the Balance Sheet as at 31 March 2017

(`)
As at As at
31 March 2017 31 March 2016
,, 2WKHU)L[HG$VVHWV,QFOXGLQJ)XUQLWXUH )L[WXUH
Gross Block
$WFRVWDVDW0DUFKRIWKHSUHFHGLQJ\HDU  
$GGLWLRQGXULQJWKH<HDU  
'HGXFWLRQGXULQJWKH<HDU  
Total 2,315,651,705 1,736,040,019
Depreciation
$VDWWKHEHJLQQLQJRIWKH<HDU  
&KDUJHIRUWKH\HDU  
'HGXFWLRQGXULQJWKH<HDU  
Depreciation to date  
Net Block 1,570,263,991 1,436,409,738
,,, &DSLWDO:RUNLQSURJUHVVLQFOXGLQJFDSLWDODGYDQFHV  
*5$1'727$/,,,,,, 2,517,863,026 2,372,311,281

6FKHGXOH2WKHU$VVHWV 
(`)
As at As at
31 March 2017 31 March 2016
i) ,QWHU2ƯFHDGMXVWPHQW1HW  
II) Interest Accrued  
III) 6WDWLRQHU\DQGVWDPSV  
,9 1RQEDQNLQJDVVHWVDFTXLUHGLQVDWLVIDFWLRQRIFODLPV  
9 Others *  
Total 2,637,403,146 1,502,896,344
,QFOXGHV'HIHUUHG7D[$VVHWVRI`3UHYLRXV<HDU`5HIHUVFKHGXOH1R

6FKHGXOH&RQWLQJHQWOLDELOLWLHV  
As at As at
31 March 2017 31 March 2016
I) &ODLPVDJDLQVWWKH%DQNQRWDFNQRZOHGJHGDVGHEWV  
II) /LDELOLW\IRUSDUWO\SDLGLQYHVWPHQWV  
III)/LDELOLW\RQDFFRXQWRIRXWVWDQGLQJIRUZDUGH[FKDQJHFRQWUDFWV  
,9 *XDUDQWHHVJLYHQRQEHKDOIRIFRQVWLWXHQWV 
(a) In India  
(b) Outside India  
9 $FFHSWDQFHVHQGRUVHPHQWVDQGRWKHUREOLJDWLRQV  
9, 2WKHULWHPV&DSLWDO&RPPLWPHQWV  
Total 236,299,515 49,018,264

91
 Aapka Bhala, Sabki Bhalai.

6FKHGXOH
HV
IRUPLQJSDUWRIWKH3URƬWDQG/RVV$FFRXQWIRUWKH\HDUHQGHG0DUFK

6FKHGXOH,QWHUHVWGLVFRXQWRQDGYDQFHVELOOV  
(`)
Year ended Year ended
31 March 2017 31 March 2016
I) ,QWHUHVWGLVFRXQWRQDGYDQFHVELOOV  
II) Income on investments  
III) ,QWHUHVWRQEDODQFHVZLWK5HVHUYH%DQNRI,QGLDDQGRWKHULQWHUEDQNIXQGV  
,9 2WKHUV,QFOXGHVJDLQRQDVVLJQPHQW,%3&  
Total 39,087,091,545 15,813,605,610

6FKHGXOH2WKHU,QFRPH 
(`)
Year ended Year ended
31 March 2017 31 March 2016
I) &RPPLVVLRQH[FKDQJHDQGEURNHUDJH  
II) 3URƬW/RVVRQVDOHRILQYHVWPHQWVQHW  
III)3URƬW/RVVRQVDOHRIƬ[HGDVVHWV  
,9 3URƬWRQH[FKDQJHGHULYDWLYHWUDQVDFWLRQV  
9 ,QFRPHHDUQHGE\ZD\RIGLYLGHQGVHWFIURPVXEVLGLDULHVFRPSDQLHVDQGRU  
MRLQWYHQWXUHDEURDGLQ,QGLD
9, 0LVFHOODQHRXVLQFRPH  
Total 4,114,134,371 1,498,939,155

6FKHGXOH,QWHUHVW([SHQGHG  
(`)
Year ended Year ended
31 March 2017 31 March 2016
I) Interest on deposits  
II) ,QWHUHVWRQ5HVHUYH%DQNRI,QGLD,QWHUEDQNERUURZLQJV  
III) Others  
Total 15,052,105,879 6,485,253,686

6FKHGXOH2SHUDWLQJ([SHQVHV 
(`)
Year ended Year ended
31 March 2017 31 March 2016
I) 3D\PHQWVWRDQGSURYLVLRQVIRUHPSOR\HHV  
II) 5HQWWD[HVDQGOLJKWLQJ  
III) Printing and stationery  
,9 $GYHUWLVHPHQWDQGSXEOLFLW\  
9 Depreciation on bank’s property  
9, 'LUHFWRUVoIHHVDOORZDQFHDQGH[SHQVHV  
9,, $XGLWRUVoIHHVDQGH[SHQVHV  
9,,, Law charges  
IX) 3RVWDJHWHOHJUDPVWHOHSKRQHVHWF  
X) Repairs and maintenance  
XI) Insurance  
XII) 2WKHUH[SHQGLWXUH  
Total 10,220,049,636 6,159,175,334

92
 Financcia
al sttatem
mentss

121
6LJQLƬFDQ
QW$
$FFRX
XQWLQ
QJ3
3ROLFLLHV
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

VDOHRILQYHVWPHQWVLQn+HOGWR0DWXULW\oFDWHJRU\LV
Schedule 17 DSSURSULDWHGQHWRIDSSOLFDEOHWD[HVDQGDPRXQW
1. Background
UHTXLUHGWREHWUDQVIHUUHGWRVWDWXWRU\UHVHUYHWR
Bandhan Bank Limited (the ‘Bank’), incorporated on
n&DSLWDO5HVHUYH$FFRXQWo
'HFHPEHULQ,QGLDLVDEDQNLQJFRPSDQ\
JRYHUQHGE\WKH%DQNLQJ5HJXODWLRQ$FW
Income on discounted instruments is recognised over
WKHWHQXUHRIWKHLQVWUXPHQWRQDFRQVWDQW\LHOG
 3XUVXDQWWRWKH%DQNLQJOLFHQVHUHFHLYHGIURP
EDVLV
5HVHUYH%DQNRI,QGLDRQ-XQHWKH%DQNKDV
FRPPHQFHGLWVEDQNLQJRSHUDWLRQVIURP$XJXVW
 'LYLGHQGLVDFFRXQWHGRQDQDFFUXDOEDVLVZKHQWKH

ULJKWWRUHFHLYHWKHGLYLGHQGLVHVWDEOLVKHG
2. Basis of preparation
Loan processing fees is accounted for upfront when it
 7KHDFFRPSDQ\LQJƬQDQFLDOVWDWHPHQWVKDYHEHHQ
EHFRPHVGXH
SUHSDUHGXQGHUWKHKLVWRULFDOFRVWFRQYHQWLRQDQGRQ
WKHDFFUXDOEDVLVRIDFFRXQWLQJXQOHVVRWKHUZLVH
 $OOIHHVIURPGHSRVLWDFFRXQWVDUHDFFRXQWHGIRUDV
VWDWHGDQGFRPSO\ZLWKWKHUHTXLUHPHQWVSUHVFULEHG
DQGZKHQWKH\DUHGXHDQGUHDOLVHG
XQGHUWKH7KLUG6FKHGXOH)RUP$DQG)RUP%RIWKH
%DQNLQJ5HJXODWLRQ$FW7KHDFFRXQWLQJDQG
 $OORWKHUIHHVDUHDFFRXQWHGIRUDVDQGZKHQWKH\
UHSRUWLQJSROLFLHVRIWKH%DQNXVHGLQWKHSUHSDUDWLRQ
EHFRPHGXH
RIWKHVHƬQDQFLDOVWDWHPHQWVFRQIRUPWR*HQHUDOO\
$FFHSWHG$FFRXQWLQJ3ULQFLSOHVLQ,QGLDn,QGLDQ
4.2. Investments
*$$3oWKHJXLGHOLQHVLVVXHGE\5%,IURPWLPHWR
 $ &ODVVLƬFDWLRQ
WLPHWKHDFFRXQWLQJVWDQGDUGVQRWLƬHGXQGHUVHFWLRQ
  ,QYHVWPHQWVDUHFODVVLƬHGLQWRWKUHHFDWHJRULHV
RIWKH&RPSDQLHV$FWUHDGWRJHWKHUZLWK
YL]+HOGWR0DWXULW\+70$YDLODEOHIRU6DOH
SDUDJUDSKRIWKH&RPSDQLHV$FFRXQWV5XOHV
$)6DQG+HOGIRU7UDGLQJ+)7DWWKHWLPHRI
DQGWKH&RPSDQLHV$FFRXQWLQJ6WDQGDUGV
SXUFKDVH
$PHQGPHQW5XOHVWRWKHH[WHQWDSSOLFDEOHDQG
SUDFWLFHVJHQHUDOO\SUHYDOHQWLQWKHEDQNLQJLQGXVWU\
  %DVLVRIFODVVLƬFDWLRQ
LQ,QGLD
  ,QYHVWPHQWVWKDWWKH%DQNLQWHQGVWRKROGWLOO
PDWXULW\DUHFODVVLƬHGDVp+HOGWR0DWXULW\
3. Use of Estimates
+70q
 7KHSUHSDUDWLRQRIWKHƬQDQFLDOVWDWHPHQWVLQ
FRQIRUPLW\ZLWKWKHJHQHUDOO\DFFHSWHGDFFRXQWLQJ
  ,QYHVWPHQWVWKDWDUHKHOGSULQFLSDOO\IRUVDOH
SULQFLSOHVUHTXLUHVWKH0DQDJHPHQWWRPDNH
ZLWKLQGD\VIURPWKHGDWHRISXUFKDVHDUH
HVWLPDWHVDQGDVVXPSWLRQVWKDWDƪHFWWKHUHSRUWHG
FODVVLƬHGDVp+HOGIRU7UDGLQJ+)7q
DPRXQWVRIDVVHWVDQGOLDELOLWLHVLQFOXGLQJFRQWLQJHQW
OLDELOLWLHVDVDWWKHGDWHRIWKHƬQDQFLDOVWDWHPHQWV
  ,QYHVWPHQWVZKLFKDUHQRWFODVVLƬHGLQDQ\RI
DQGWKHUHSRUWHGLQFRPHDQGH[SHQVHVGXULQJWKH
WKHDERYHWZRFDWHJRULHVDUHFODVVLƬHGDV
UHSRUWLQJSHULRG7KH0DQDJHPHQWEHOLHYHVWKDWWKH
p$YDLODEOHIRU6DOH$)6qLQYHVWPHQWV
HVWLPDWHVXVHGLQWKHSUHSDUDWLRQRIWKHƬQDQFLDO
VWDWHPHQWVDUHSUXGHQWDQGUHDVRQDEOH$Q\UHYLVLRQV
  +
 RZHYHUIRUGLVFORVXUHLQWKH%DODQFH6KHHW
to the accounting estimates are recognised
LQYHVWPHQWVLQ,QGLDDUHFODVVLƬHGXQGHUVL[
SURVSHFWLYHO\LQWKHFXUUHQWDQGIXWXUHSHULRGV
FDWHJRULHVt*RYHUQPHQW6HFXULWLHV2WKHU
$FWXDOUHVXOWVFRXOGGLƪHUIURPHVWLPDWHV
DSSURYHGVHFXULWLHV6KDUHV'HEHQWXUHVDQG
%RQGV,QYHVWPHQWLQ6XEVLGLDULHV-RLQW
 6LJQLƬFDQWDFFRXQWLQJSROLFLHV
9HQWXUHVDQG2WKHUV
4.1 Revenue Recognition
 ,QWHUHVWLQFRPHLVUHFRJQLVHGLQWKHSURƬWDQGORVV
  $
 QLQYHVWPHQWLVFODVVLƬHGDV+70+)7RU$)6DW
DFFRXQWRQDQDFFUXDOEDVLVH[FHSWLQWKHFDVHRI
WKHWLPHRILWVSXUFKDVHDQGVXEVHTXHQWVKLIWLQJ
LQWHUHVWRQQRQSHUIRUPLQJDVVHWVZKLFKLVUHFRJQLVHG
amongst categories is done in conformity with
DVLQFRPHRQUHDOLVDWLRQDVSHUWKHLQFRPH
UHJXODWRU\JXLGHOLQHV
UHFRJQLWLRQDQGDVVHWFODVVLƬFDWLRQQRUPVRI5%,
  ,QYHVWPHQWVDUHFODVVLƬHGDVSHUIRUPLQJRU
 3URƬWRU/RVVRQVDOHRILQYHVWPHQWVLVUHFRJQLVHGLQ
QRQSHUIRUPLQJDVSHU5%,JXLGHOLQHV
WKH3URƬWDQG/RVV$FFRXQW+RZHYHUWKHSURƬWRQ
1RQSHUIRUPLQJLQYHVWPHQWVDUH

93
 Aapka Bhala, Sabki Bhalai.

6LJQLƬFDQ Accou
QWA untin
ng PROLFLLHV
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

VXEMHFWHGWRVLPLODULQFRPHUHFRJQLWLRQDQG Repurchase (‘repo’) and reverse repurchase

provisioning norms as prescribed by RBI for nUHYHUVHUHSRoWUDQVDFWLRQVLQFOXGLQJOLTXLGLW\
QRQSHUIRUPLQJDGYDQFHV DGMXVWPHQWIDFLOLW\ZLWK5%,DUHDFFRXQWHGIRU
DVERUURZLQJDQGOHQGLQJWUDQVDFWLRQV
 %9DOXDWLRQ
Broken period interest and costs such as
EURNHUDJHSDLGDWWKHWLPHRIDFTXLVLWLRQRIWKH
VHFXULW\DUHFKDUJHGWR3URƬWDQG/RVVDFFRXQW
&RVWRILQYHVWPHQWVLVFRPSXWHGRQZHLJKWHG
DYHUDJHFRVWPHWKRG
  ,QYHVWPHQWVPDUNHGDV$)6DQG+)7DUHPDUNHG
WRPDUNHWRQDSHULRGLFEDVLVDVSHUUHOHYDQW5%,
JXLGHOLQHV7KHVHFXULWLHVDUHYDOXHGVFULSZLVH
DQGGHSUHFLDWLRQDSSUHFLDWLRQLVDJJUHJDWHGIRU
HDFKFDWHJRU\1HWDSSUHFLDWLRQLQHDFK
FDWHJRU\LIDQ\LVLJQRUHGZKLOHQHW
GHSUHFLDWLRQLVSURYLGHGIRU7KHERRNYDOXHRI
LQGLYLGXDOVHFXULWLHVLVQRWFKDQJHGFRQVHTXHQW
WRWKHSHULRGLFYDOXDWLRQRILQYHVWPHQWV
  n+HOGWR0DWXULW\oVHFXULWLHVLVFDUULHGDWWKHLU
DFTXLVLWLRQFRVWRUDWDPRUWLVHGFRVWLIDFTXLUHG
DWDSUHPLXPRYHUWKHIDFHYDOXH$Q\SUHPLXP
SDLGRQDFTXLVLWLRQRYHUWKHIDFHYDOXHLV
amortised over the remaining period of maturity
E\DSSO\LQJFRQVWDQW\LHOGPHWKRG:KHUHLQWKH
opinion of the management, a diminution, other
WKDQWHPSRUDU\LQWKHYDOXHRILQYHVWPHQWV
FODVVLƬHGXQGHU+70KDVWDNHQSODFHVXLWDEOH
SURYLVLRQVDUHPDGH
  7
 UHDVXU\ELOOVEHLQJGLVFRXQWHGLQVWUXPHQWVDUH
YDOXHGDWFXUUHQWFRVW
  4
 XRWHGLQYHVWPHQWVDUHYDOXHGDWWUDGHG
TXRWHGSULFHDYDLODEOHIURPUHFRJQLVHGVWRFN
H[FKDQJHVVXEVLGLDU\JHQHUDOOHGJHUVDFFRXQW
WUDQVDFWLRQVSULFHOLVWRI5%,RUSULFHVGHFODUHG
$FFRUGLQJO\VHFXULWLHVJLYHQDVFROODWHUDOXQGHU
an agreement to repurchase them continue to
EHKHOGXQGHUWKHLQYHVWPHQWDFFRXQWRIWKH
%DQNDQGWKH%DQNZRXOGFRQWLQXHWRDFFUXHWKH
FRXSRQGLVFRXQWRQWKHVHFXULW\GXULQJWKHUHSR
SHULRG$OVRWKH%DQNFRQWLQXHVWRYDOXHWKH
VHFXULWLHVVROGXQGHUUHSRDVSHUWKHLQYHVWPHQW
FODVVLƬFDWLRQRIWKHVHFXULW\7KHGLƪHUHQFH
EHWZHHQWKHFOHDQSULFHRIWKHƬUVWOHJDQGFOHDQ
SULFHRIWKHVHFRQGOHJLVUHFRJQLVHGDVLQWHUHVW
LQFRPHH[SHQVHRYHUWKHSHULRGRIWKH
WUDQVDFWLRQLQWKHSURƬWDQGORVVDFFRXQW
4.3 Loans /Advances and Provisions thereon
 $GYDQFHVDUHFODVVLƬHGLQWRSHUIRUPLQJDQGQRQ
performing advances (‘NPAs’) as per the RBI
JXLGHOLQHVDQGDUHVWDWHGQHWRIVSHFLƬFSURYLVLRQV
PDGHWRZDUGV13$V)XUWKHU13$VDUHFODVVLƬHGLQWR
VXEVWDQGDUGGRXEWIXODQGORVVDVVHWVEDVHGRQWKH
FULWHULDVWLSXODWHGE\WKH5%,3URYLVLRQVIRU13$V
RWKHUWKDQPLFUROHQGLQJSRUWIROLRDUHPDGHIRU
VXEVWDQGDUGDQGGRXEWIXODVVHWVDWUDWHVDV
SUHVFULEHGE\WKH5%,
The Micro Loans granted for `RUPRUHDUH
FRQVLGHUHGDVVHFXUHGORDQVDVWKHXQGHUO\LQJORDQ
DJUHHPHQWVLQFOXGHDFODXVHRIK\SRWKHFDWLRQZKHUHE\
DOOPRYDEOHJRRGVSURFXUHGIURPWLPHWRWLPHIURPWKH
SURFHHGVRIORDQDUHK\SRWKHFDWHGLQIDYRXURIWKH%DQN
E\ZD\RIDƬUVWDQGH[FOXVLYHFKDUJH
 $PRXQWVUHFRYHUHGDJDLQVWGHEWVZULWWHQRƪLQ
HDUOLHU\HDUVDUHUHFRJQLVHGLQWKHSURƬWDQGORVV
DFFRXQWDVFUHGLWWR0LVFHOODQHRXV,QFRPHXQGHUWKH
head ‘Other Income’
E\3ULPDU\'HDOHUV$VVRFLDWLRQRI,QGLDp3'$,q
MRLQWO\ZLWK)L[HG,QFRPH0RQH\0DUNHWDQG  7KH%DQNPDLQWDLQVJHQHUDOSURYLVLRQRQVWDQGDUG
'HULYDWLYHV$VVRFLDWLRQp),00'$qDVDWWKH DGYDQFHVDVSUHVFULEHGE\5%,,QFDVHRIPLFUR
EDODQFHVKHHWGDWH7KHPDUNHWIDLUYDOXHRI OHQGLQJSRUWIROLRRULJLQDOGLVEXUVHGDPRXQWRI
XQTXRWHGJRYHUQPHQWVHFXULWLHVZKLFKDUHLQ `RUOHVVDJHQHUDOSURYLVLRQRQVWDQGDUG
WKHQDWXUHRIVWDWXWRU\OLTXLGLW\UDWLR6/5
VHFXULWLHVLQFOXGHGLQWKHn$YDLODEOHIRU6DOHoDQG
n+HOGIRUWUDGLQJoFDWHJRULHVLVYDOXHGDVSHUWKH
UDWHSXEOLVKHGE\WKH),00'$
  8
 QTXRWHGHTXLW\VKDUHVDUHYDOXHGDWWKH
EUHDNXSYDOXHLIWKHODWHVW%DODQFH6KHHWLV
DYDLODEOHRUDW5HDVSHUWKH5%,JXLGHOLQHV
Transfer of securities between categories of
investments is accounted as per the
5%,*XLGHOLQHV
94
DGYDQFHVLVPDLQWDLQHGDWZKLFKLVKLJKHUWKDQWKH
PLQLPXPSURYLVLRQLQJUHTXLUHPHQWDVVSHFLƬHGLQWKH
5%,JXLGHOLQHV3URYLVLRQPDGHDJDLQVWVWDQGDUG
DVVHWVLVLQFOXGHGLQp2WKHUOLDELOLWLHV SURYLVLRQVq
 )RUPLFURORDQVSURYLVLRQIRU13$VKDYHEHHQ
provided at rates which are higher than the minimum
UDWHVSUHVFULEHGE\5%,,QFDVHRIVXEVWDQGDUGDVVHWV
WKHUDWHLVDQGIRUGRXEWIXODQGORVVDVVHWVWKH
UDWHLV

6LJQLƬFDQ Accou
QWA untin
ng PROLFLLHV
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK
 ,QFDVHRIQRQSHUIRUPLQJPLFUROHQGLQJSRUWIROLR
ZKHUHGD\VKDYHHODSVHGIURPWKHFRPSOHWLRQRI
ORDQWHQXUHWKH%DQNLVPDNLQJSURYLVLRQ
 1RQSHUIRUPLQJORDQVZKLFKKDYHEHHQIXOO\
SURYLGHGIRUDUHZULWWHQRƪDVSHU0DQDJHPHQW
HVWLPDWHV
 ,QWHU%DQN3DUWLFLSDWLRQ&HUWLƬFDWH
The Bank enters into Inter Bank Participation with risk
sharing as issuing Bank and the aggregate amount of
participation are reduced from the aggregate
DGYDQFHRXWVWDQGLQJ
 *DLQRQ,%3&LVWKHH[FHVVRILQFRPHHDUQHGRQWKH
SDUWLFLSDWLRQSRRODQGLQWHUHVWSDLGWRWKH
SDUWLFLSDWLRQDPRXQW,QWHUHVW,QFRPHDQGH[SHQVH
DUHUHFRJQLVHGRQDFFUXDOEDVLV
4.5 Tangible Assets
 $OOƬ[HGDVVHWVDUHVWDWHGDWKLVWRULFDOFRVWOHVV
DFFXPXODWHGGHSUHFLDWLRQDQGLPSDLUPHQWORVVLIDQ\
&RVWFRPSULVHVWKHSXUFKDVHSULFHDQGDQ\
DWWULEXWDEOHFRVWRIEULQJLQJWKHDVVHWWRLWVZRUNLQJ
FRQGLWLRQIRULWVLQWHQGHGXVH
 $VVHWXQGHUGHYHORSPHQWDVDWWKHEDODQFHVKHHW
GDWHDUHVKRZQDV&DSLWDO:RUNLQSURJUHVV$GYDQFH
SDLGWRZDUGVVXFKGHYHORSPHQWDUHVKRZQDVFDSLWDO
DGYDQFH
4.6 Intangible Assets
 ,QWDQJLEOHDVVHWVDFTXLUHGVHSDUDWHO\DUHPHDVXUHG
RQLQLWLDOUHFRJQLWLRQDWFRVW)ROORZLQJLQLWLDO
UHFRJQLWLRQLQWDQJLEOHDVVHWVDUHFDUULHGDWFRVWOHVV
DFFXPXODWHGDPRUWLVDWLRQDQGDFFXPXODWHG
LPSDLUPHQWORVVLIDQ\
4.7 Depreciation
 'HSUHFLDWLRQLVSURYLGHGRQVWUDLJKWOLQHEDVLVDVSHU
WKHOLIHSUHVFULEHGXQGHU6FKHGXOH,,RIWKH
&RPSDQLHV$FWZKLFKLVLQDFFRUGDQFHZLWK
PDQDJHPHQWHVWLPDWHRIWKHXVHIXOOLIHRIWKH
XQGHUO\LQJDVVHWV
 /HDVHKROGLPSURYHPHQWVDUHGHSUHFLDWHGRYHUD
SHULRGRIWKUHH\HDUV
 6RIWZDUHVDUHDPRUWLVHGRYHUDSHULRGRIWKUHH\HDUV
4.8 Impairment
The carrying amounts of assets are reviewed at each
EDODQFHVKHHWGDWHWRGHWHUPLQHLIWKHUHLVDQ\
LQGLFDWLRQRILPSDLUPHQWEDVHGRQLQWHUQDOH[WHUQDO
IDFWRUV$QLPSDLUPHQWORVVLVUHFRJQLVHGZKHUHYHU
WKHFDUU\LQJDPRXQWRIDQDVVHWH[FHHGVLWV
Financcia
al sttatem
mentss
121
UHFRYHUDEOHDPRXQWZKLFKLVWKHJUHDWHURIWKH
DVVHWoVQHWVHOOLQJSULFHDQGYDOXHLQXVH,QDVVHVVLQJ
WKHYDOXHLQXVHWKHHVWLPDWHGIXWXUHFDVKƮRZVDUH
GLVFRXQWHGWRWKHLUSUHVHQWYDOXHXVLQJSUHWD[
GLVFRXQWUDWHWKDWUHƮHFWVFXUUHQWPDUNHWDVVHVVPHQW
RIWKHWLPHYDOXHRIPRQH\DQGULVNVVSHFLƬFWR
WKHDVVHW
After impairment, depreciation is provided on the
revised carrying amount of the asset over its
UHPDLQLQJXVHIXOOLIH
4.9 Foreign Currency transactions
 $OOWUDQVDFWLRQVLQIRUHLJQFXUUHQF\DUHUHFRJQLVHGDW
WKHH[FKDQJHUDWHSUHYDLOLQJRQWKHGDWHRIWKH
WUDQVDFWLRQ
 )RUHLJQFXUUHQF\PRQHWDU\LWHPVDUHUHSRUWHGXVLQJWKH
H[FKDQJHUDWHSUHYDLOLQJDWWKH%DODQFH6KHHWGDWH
 1RQPRQHWDU\LWHPVZKLFKDUHPHDVXUHGLQWHUPVRI
KLVWRULFDOFRVWGHQRPLQDWHGLQDIRUHLJQFXUUHQF\DUH
UHSRUWHGXVLQJWKHH[FKDQJHUDWHDWWKHGDWHRI
WUDQVDFWLRQ1RQPRQHWDU\LWHPVZKLFKDUH
PHDVXUHGDWIDLUYDOXHRURWKHUVVLPLODUYDOXDWLRQ
GHQRPLQDWHGLQDIRUHLJQFXUUHQF\DUHWUDQVODWHG
XVLQJWKHH[FKDQJHUDWHDWWKHGDWHZKHQVXFKYDOXH
ZDVGHWHUPLQHG
 ([FKDQJHGLƪHUHQFHVDULVLQJRQWKHVHWWOHPHQWRI
monetary items or on reporting such monetary items
DWUDWHVGLƪHUHQWIURPWKRVHDWZKLFKWKH\ZHUH
LQLWLDOO\UHFRUGHGGXULQJWKH\HDURUUHSRUWHGLQ
SUHYLRXVƬQDQFLDOVWDWHPHQWVDUHUHFRJQLVHGDV
LQFRPHRUDVH[SHQVHVLQWKH\HDULQZKLFKWKH\DULVH
4.10 5HWLUHPHQWDQGHPSOR\HHEHQHƬWV
 5HWLUHPHQWEHQHƬWLQWKHIRUPRISURYLGHQWIXQGLVD
GHƬQHGFRQWULEXWLRQVFKHPH7KH%DQNKDVQR
REOLJDWLRQRWKHUWKDQWKHFRQWULEXWLRQSD\DEOHWRWKH
SURYLGHQWIXQG7KH%DQNUHFRJQLVHVFRQWULEXWLRQ
SD\DEOHWRWKHSURYLGHQWIXQGVFKHPHDV
H[SHQGLWXUHZKHQDQHPSOR\HHUHQGHUVWKHUHODWHG
VHUYLFH,IWKHFRQWULEXWLRQSD\DEOHWRWKHVFKHPHIRU
VHUYLFHUHFHLYHGEHIRUHWKHEDODQFHVKHHWGDWH
H[FHHGVWKHFRQWULEXWLRQDOUHDG\SDLGWKHGHƬFLW
SD\DEOHWRWKHVFKHPHLVUHFRJQLVHGDVDOLDELOLW\DIWHU
GHGXFWLQJWKHFRQWULEXWLRQDOUHDG\SDLG,IWKH
FRQWULEXWLRQDOUHDG\SDLGH[FHHGVWKHFRQWULEXWLRQ
GXHIRUVHUYLFHVUHFHLYHGEHIRUHWKHEDODQFHVKHHW
GDWHWKHQH[FHVVLVUHFRJQLVHGDVDQDVVHW
 *UDWXLW\OLDELOLW\LVDGHƬQHGEHQHƬWREOLJDWLRQDQGLV
SURYLGHGIRURQWKHEDVLVRIDQDFWXDULDOYDOXDWLRQ
RQSURMHFWHGXQLWFUHGLWPHWKRGPDGHDWWKH
HQGRIHDFKƬQDQFLDO\HDU
95
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

 /RQJWHUP&RPSHQVDWHGDEVHQFHVDUHSURYLGHGIRU
4.12 Earnings per Share
EDVHGRQDFWXDULDOYDOXDWLRQZKLFKLVGRQHDVSHU
 %DVLFHDUQLQJVSHUVKDUHLVFDOFXODWHGE\GLYLGLQJWKH
SURMHFWHGXQLWFUHGLWPHWKRGDWWKHHQGRIHDFK
QHWSURƬWRUORVVDIWHUWD[IRUWKHSHULRGDWWULEXWDEOH
ƬQDQFLDO\HDU6KRUWWHUP&RPSHQVDWHGDEVHQFHVDUH
WRHTXLW\VKDUHKROGHUVE\WKHZHLJKWHGDYHUDJH
SURYLGHGIRUEDVHGRQHVWLPDWHVRIHQFDVKPHQW
QXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKH\HDU
DYDLOPHQWRIOHDYH
 'LOXWHGHDUQLQJVSHUHTXLW\VKDUHLVFRPSXWHGXVLQJ
 $FWXDULDOJDLQVORVVHVDUHLPPHGLDWHO\WDNHQWRWKH
WKHZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVDQG
SURƬWDQGORVVDFFRXQWDQGDUHQRWGHIHUUHG
GLOXWLYHSRWHQWLDOHTXLW\VKDUHVRXWVWDQGLQJGXULQJ
WKHSHULRGH[FHSWZKHUHWKHUHVXOWVDUHDQWLGLOXWLYH
{,QFRPH7D[HV
 7D[H[SHQVHVFRPSULVHVFXUUHQWDQGGHIHUUHGWD[
{3URYLVLRQV&RQWLQJHQW/LDELOLWLHVDQG
&XUUHQWLQFRPHWD[LVPHDVXUHGDWWKHDPRXQW
Contingent Assets
H[SHFWHGWREHSDLGWRWKHWD[DXWKRULWLHVLQ
A provision is recognised when the Bank has a present
DFFRUGDQFHZLWKWKH,QFRPH7D[$FW'HIHUUHG
REOLJDWLRQDVDUHVXOWRISDVWHYHQWLWLVSUREDEOHWKDW
LQFRPHWD[HVUHƮHFWVWKHLPSDFWRIFXUUHQW\HDU
DQRXWƮRZRIUHVRXUFHVHPERG\LQJHFRQRPLF
WLPLQJGLƪHUHQFHVEHWZHHQWD[DEOHLQFRPHDQG
EHQHƬWVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGD
DFFRXQWLQJLQFRPHIRUWKH\HDUDQGUHYHUVDORIWLPLQJ
UHOLDEOHHVWLPDWHFDQEHPDGHRIWKHDPRXQWRIWKH
GLƪHUHQFHVRIHDUOLHU\HDUV
REOLJDWLRQ3URYLVLRQVDUHQRWGLVFRXQWHGWRWKHLU
SUHVHQWYDOXHDQGDUHGHWHUPLQHGEDVHGRQWKHEHVW
 'HIHUUHG7D[LVPHDVXUHGEDVHGRQWKHWD[UDWHVDQG
HVWLPDWHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDWWKH
WKHWD[ODZVHQDFWHGRUVXEVWDQWLYHO\HQDFWHGDWWKH
UHSRUWLQJGDWH7KHVHHVWLPDWHVDUHUHYLHZHGDWHDFK
EDODQFHVKHHWGDWH'HIHUUHGWD[DVVHWVDUH
UHSRUWLQJGDWHDQGDGMXVWHGWRUHƮHFWWKHFXUUHQW
UHFRJQLVHGRQO\WRWKHH[WHQWWKDWWKHUHLVUHDVRQDEOH
EHVWHVWLPDWHV
FHUWDLQW\WKDWVXƯFLHQWIXWXUHWD[DEOHLQFRPHZLOOEH
DYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQ
 $FRQWLQJHQWOLDELOLW\LVDSRVVLEOHREOLJDWLRQWKDW
EHUHDOLVHG,IWKH%DQNKDVFDUULHGIRUZDUG
DULVHVIURPSDVWHYHQWVZKRVHH[LVWHQFHZLOOEH
XQDEVRUEHGGHSUHFLDWLRQDQGWD[ORVVHVDOOGHIHUUHG
FRQƬUPHGE\WKHRFFXUUHQFHRUQRQRFFXUUHQFHRI
WD[DVVHWVLVUHFRJQLVHGRQO\WRWKHH[WHQWWKDWWKHUH
one or more uncertain future events beyond the
LVDYLUWXDOFHUWDLQW\VXSSRUWHGE\FRQYLQFLQJHYLGHQFH
FRQWURORIWKH%DQNRUDSUHVHQWREOLJDWLRQWKDWLVQRW
WKDWVXƯFLHQWWD[DEOHLQFRPHZLOOEHDYDLODEOHLQ
UHFRJQLVHGEHFDXVHLWLVQRWSUREDEOHWKDWDQRXWƮRZ
IXWXUHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEH
RIUHVRXUFHVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQ
UHDOLVHG
$FRQWLQJHQWOLDELOLW\DOVRDULVHVLQH[WUHPHO\UDUH
FDVHVZKHUHWKHUHLVDOLDELOLW\WKDWFDQQRWEH
 $WHDFKUHSRUWLQJGDWHWKH%DQNUHDVVHVVHV
UHFRJQLVHGEHFDXVHLWFDQQRWEHPHDVXUHGUHOLDEO\
XQUHFRJQLVHGGHIHUUHGWD[DVVHWV,WUHFRJQLVHV
7KH%DQNGRHVQRWUHFRJQLVHDFRQWLQJHQWOLDELOLW\EXW
XQUHFRJQLVHGGHIHUUHGWD[DVVHWVWRWKHH[WHQWWKDWLW
GLVFORVHVLWVH[LVWHQFHLQWKHƬQDQFLDOVWDWHPHQWV
KDVEHFRPHUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDV
WKHFDVHPD\EHWKDWVXƯFLHQWIXWXUHWD[DEOHLQFRPH
 &RQWLQJHQW$VVHWVDUHQRWUHFRJQLVHGLQWKHƬQDQFLDO
ZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[
VWDWHPHQWV
DVVHWVFDQEHUHDOLVHG
4.14 Leases
 7KHFDUU\LQJDPRXQWVRIGHIHUUHGWD[DVVHWVDUH
 /HDVHVZKHUHWKHOHVVRUHƪHFWLYHO\UHWDLQV
UHYLHZHGDWHDFKEDODQFHVKHHWGDWH7KH%DQNZULWHV
VXEVWDQWLDOO\DOOWKHULVNVDQGEHQHƬWVRIRZQHUVKLSRI
GRZQWKHFDUU\LQJDPRXQWRIGHIHUUHGWD[DVVHWVWR
WKHOHDVHGLWHPVDUHFODVVLƬHGDVRSHUDWLQJOHDVHV
WKHH[WHQWWKDWLWLVQRORQJHUUHDVRQDEO\FHUWDLQRU
2SHUDWLQJOHDVHSD\PHQWVDUHUHFRJQLVHGDVDQ
YLUWXDOO\FHUWDLQDVWKHFDVHPD\EHWKDWVXƯFLHQW
H[SHQVHLQWKHSURƬWDQGORVVDFFRXQWRQDVWUDLJKW
IXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFK
OLQHEDVLVRYHUWKHOHDVHWHUP
GHIHUUHGWD[DVVHWFDQEHUHDOLVHG$Q\VXFKZULWH
GRZQLVUHYHUVHGWRWKHH[WHQWWKDWLWEHFRPHV
{&DVKDQG&DVKEquivalent
UHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKHFDVHPD\
 &DVKDQGFDVKHTXLYDOHQWVLQFOXGHFDVKLQKDQG
EHWKDWVXƯFLHQWIXWXUHWD[DEOHLQFRPHZLOOEH
EDODQFHVZLWK5%,EDODQFHVZLWKRWKHUEDQNVDQG
DYDLODEOH
PRQH\DWFDOODQGVKRUWQRWLFH

96
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

Schedule 18
7KHIROORZLQJGLVFORVXUHVKDYHEHHQPDGHWDNLQJLQWRDFFRXQWWKHUHTXLUHPHQWVRI$FFRXQWLQJ6WDQGDUGV$6VDQG
5HVHUYH%DQNRI,QGLD5%,JXLGHOLQHVLQWKLVUHJDUG

p3URYLVLRQV &RQWLQJHQFLHVqUHFRJQLVHGLQWKH3URƬW /RVV$FFRXQWFRPSULVH

(` in crore)
Year ended Year ended
31 March 2017 31 March 2016
3URYLVLRQIRU,QFRPH7D[
&XUUHQW7D[  
'HIHUUHGWD[5HIHU1RWH1R  
Total Tax Expenses 592.52 138.26
3URYLVLRQIRU6WDQGDUGDVVHWV  
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWV>,QFOXGHVEDGGHEWVZULWWHQRƪ`  
FURUH3UHYLRXV<HDU1LO@
3URYLVLRQIRUGHSUHFLDWLRQLQYDOXHRILQYHVWPHQWV  
Provision for restructured assets  
3URYLVLRQIRUXQKHGJHGIRUHLJQFXUUHQF\H[SRVXUH  
Provision for country risk  
Provision for other contingencies  
Total 680.96 191.56

7KHFDSLWDODGHTXDF\UDWLRRIWKH%DQNFDOFXODWHGDVSHUWKH5%,JXLGHOLQHVXQGHU%DVHO,,,LVVHW

out below:
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
&DSLWDODGHTXDF\
&RPPRQ(TXLW\7LHU  
7LHUFDSLWDOUDWLR  
7LHUFDSLWDOUDWLR  
&5$5 26.36 29.01
$PRXQWRIHTXLW\FDSLWDOUDLVHGLQFOXGLQJVKDUHSUHPLXP  
Amount of additional Tier I capital raised of which:  
3HUSHWXDO1RQ&XPXODWLYH3UHIHUHQFH6KDUHV31&36  
3HUSHWXDO'HEW,QVWUXPHQWV3',  
Amount of Tier II capital raised of which:  
'HEWFDSLWDOLQVWUXPHQW   
3UHIHUHQWLDOFDSLWDOLQVWUXPHQW 
6KDUHV3&365HGHHPDEOH1RQ&XPXODWLYH3UHIHUHQFH6KDUHV51&36  
5HGHHPDEOH&XPXODWLYH3UHIHUHQFH6KDUHV
 $FTXLUHGIURP%DQGKDQ)LQDQFLDO6HUYLFHV/WG

 7KH%DQNKDVQRWUHGHHPHGDQ\VXERUGLQDWHGGHEWGXULQJWKH\HDUHQGHG0DUFK3UHYLRXV<HDU1LO

97
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

18.3 Investments
$ 7KH'HWDLOVRILQYHVWPHQWVDUHVHWRXWEHORZ

(` in crore)
As at As at
Value of Investments
31 March 2017 31 March 2016
 Value of Investment
(i) *URVVYDOXHRI,QYHVWPHQWV
a) In India  
b)Outside India  
(ii) Provision for Depreciation
a) In India  
b) Outside India  
(iii) 3URYLVLRQIRU1RQ3HUIRUPLQJ,QYHVWPHQWV
a) In India  
b) Outside India  
(iv) 1HWYDOXHRI,QYHVWPHQWV
a) In India  
b) Outside India  

(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
 Movement of provisions held towards depreciation on investments:
2SHQLQJEDODQFH  
$GG3URYLVLRQVPDGHGXULQJWKH\HDU  
/HVV:ULWHRƪVZULWHEDFNRIH[FHVVSURYLVLRQVGXULQJWKH\HDU  
Closing balance  

% 5HSR7UDQVDFWLRQVLQIDFHYDOXHWHUPV 

(` in crore)
Minimum Maximum 'DLO\$YHUDJH Outstanding as
Particulars outstanding outstanding outstanding on 31 March ,
during the year during the year during the year 2017
6HFXULWLHVVROGXQGHU5HSR
L*RYHUQPHQWVHFXULWLHV    
   
LL&RUSRUDWHGHEWVHFXULWLHV    
   
6HFXULWLHVSXUFKDVHGXQGHUUHYHUVHUHSR
L*RYHUQPHQWVHFXULWLHV    
   
LL&RUSRUDWHGHEWVHFXULWLHV    
   
 3UHYLRXV\HDUƬJXUHVDUHVKRZQLQqq

98
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

& 1RQ6/5,QYHVWPHQW3RUWIROLR 
 L,VVXHUFRPSRVLWLRQRI1RQ6/5LQYHVWPHQWV 
(` in crore)
([WHQWRIn%HORZ Extent of Extent of
Extent of Private
Issuer Amount Investment ‘Unrated’ ‘Unlisted’
Placement
Grade’ Securities Securities Securities
     
L3XEOLF6HFWRU8QLWV     
    
LL)LQDQFLDO,QVWLWXWLRQV
    
(iii) Banks
    
LY3ULYDWH&RUSRUDWHV   
    
Y6XEVLGLDULHV-RLQW
9HQWXUHV     
(vi) Others
    
YLL3URYLVLRQKHOG
towards depreciation     
0.20 - - 0.20 0.20
Total
 - -  
 $PRXQWVUHSRUWHGXQGHUFROXPQVDQGDERYHDUHQRWPXWXDOO\H[FOXVLYH    
 3UHYLRXV\HDUƬJXUHVDUHVKRZQLQqq

 LL 1RQSHUIRUPLQJ1RQ6/5LQYHVWPHQWV
  7KH%DQNGRHVQRWKDYHDQ\1RQSHUIRUPLQJ1RQ6/5LQYHVWPHQWDVRQ0DUFKDQG0DUFK

' 6DOHDQGWUDQVIHUVRI6HFXULWLHVWRIURP+70&DWHJRU\
 7KH%DQNKDVQRWVROGDQGWUDQVIHUUHGVHFXULWLHVWRRUIURP+70FDWHJRU\H[FHHGLQJRIWKHERRNYDOXHRI
LQYHVWPHQWKHOGLQ+70FDWHJRU\DWWKHEHJLQQLQJRIWKH\HDU7KHWKUHVKROGUHIHUUHGWRDERYHGRHVQRWLQFOXGH
RQHWLPHWUDQVIHURIVHFXULWLHVWRIURP+70FDWHJRU\ZLWKWKHDSSURYDORI%RDUGRI'LUHFWRUVSHUPLWWHGWREH
XQGHUWDNHQE\EDQNVDVSHUH[WDQW5%,JXLGHOLQHVVDOHRIVHFXULWLHVXQGHUSUHDQQRXQFHG2SHQ0DUNHW2SHUDWLRQ
202DXFWLRQWRWKH5%,DQGVDOHRIVHFXULWLHVRUWUDQVIHUWR$)6+)7FRQVHTXHQWWRWKHUHGXFWLRQRIFHLOLQJRQ
6/5VHFXULWLHVXQGHU+70

99
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

18.4 Derivatives
 7KH%DQNKDVQRWHQWHUHGLQWRDQ\GHULYDWLYHWUDQVDFWLRQGXULQJWKHFXUUHQWDQGSUHYLRXV\HDU

18.5 Asset Quality

$ 1RQ3HUIRUPLQJ$VVHWV    
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
i) 1HW13$VWR1HW$GYDQFHV  
ii) Movement of NPAs (Gross)
D2SHQLQJEDODQFH  
b) Additions during the year  
F5HGXFWLRQVGXULQJWKH\HDU>,QFOXGHVEDGGHEWVZULWWHQRƪ`FURUH  
3UHYLRXV<HDU1LO@
G&ORVLQJEDODQFH  
iii) Movement of Net NPAs
D2SHQLQJEDODQFH  
b) Additions during the year  
c) Reductions during the year  
G&ORVLQJEDODQFH  
iv) 0RYHPHQWRISURYLVLRQVIRU13$VH[FOXGLQJSURYLVLRQVRQVWDQGDUGDVVHWV
D2SHQLQJEDODQFH  
b) Provisions made during the year*  
F3URYLVLRQXWLOLVHGIRU:ULWHRƪZULWHEDFNRIH[FHVVSURYLVLRQV  
G&ORVLQJEDODQFH  
  ,QFOXGHVSURYLVLRQRI`FURUH3UHYLRXV<HDU1LORQQRQSHUIRUPLQJPLFUROHQGLQJSRUWIROLRZKHUHGD\VKDYHHODSVHGIURPWKHGDWHRI
FRPSOHWLRQRIWHQXUHRIORDQ7KH%DQNKDVDGRSWHGDSROLF\WRPDNHSURYLVLRQRQVXFKFDVHVDW0DUFK

% 3DUWLFXODUVRIDFFRXQWVUHVWUXFWXUHG
 7KH%DQNGRHVQRWKDYHDQ\UHVWUXFWXUHGDFFRXQWDVDWDQGIRUWKH\HDUHQGHG0DUFKDQG0DUFK

& 'HWDLOVRI)LQDQFLDO$VVHWVVROGWR6HFXULWLVDWLRQ5HFRQVWUXFWLRQFRPSDQ\IRU5HFRQVWUXFWLRQ
 7KH%DQNGLGQRWVHOODQ\)LQDQFLDO$VVHWVWR6HFXULWLVDWLRQ5HFRQVWUXFWLRQFRPSDQ\IRU5HFRQVWUXFWLRQGXULQJWKH
FXUUHQWDQGSUHYLRXV\HDU     

' 'HWDLOVRI1RQ3HUIRUPLQJ)LQDQFLDO$VVHWV3XUFKDVHG6ROG    
 7KH%DQNGLGQRWSXUFKDVHVHOODQ\1RQ3HUIRUPLQJ)LQDQFLDO$VVHWVGXULQJWKHFXUUHQWDQGSUHYLRXV\HDU

( 3URYLVLRQVRQ6WDQGDUG$VVHWV
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
3URYLVLRQVWRZDUGV6WDQGDUG$VVHWV   

) 'LVFORVXUHRQ$GYDQFHV
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
*URVV$GYDQFHV,QFOXGLQJ,%3&$VVLJQPHQW  
/HVV0DQDJHG$GYDQFH,%3&$VVLJQPHQW  
*URVV$GYDQFHV([FOXGLQJ,%3&$VVLJQPHQW  
/HVV3URYLVLRQRQ13$  
1HW$GYDQFHV5HIHU6FKHGXOH  

100
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

* 'LVFORVXUHRI'LYHUJHQFHLQ$VVHW&ODVVLƬFDWLRQDQG3URYLVLRQLQJIRU13$VsUHI'%5%3%&
1RGDWHG$SULO     
(` in crore)
SL. No. Particulars
 *URVV13$VDVRQ0DUFKDVUHSRUWHGE\WKHEDQN 
 *URVV13$VDVRQ0DUFKDVDVVHVVHGE\5%, 
 'LYHUJHQFHLQ*URVV13$V 
 1HW13$VDVRQ0DUFKDVUHSRUWHGE\WKHEDQN 
 1HW13$VDVRQ0DUFKDVDVVHVVHGE\5%, 
 'LYHUJHQFHLQ1HW13$V 
 3URYLVLRQVIRU13$VDVRQ0DUFKDVUHSRUWHGE\WKHEDQN 
 3URYLVLRQVIRU13$VDVRQ0DUFKDVDVVHVVHGE\5%, 
 'LYHUJHQFHLQSURYLVLRQLQJ 
 5HSRUWHG1HW3URƬWDIWHU7D[3$7IRUWKH\HDUHQGHG0DUFK 
 $GMXVWHGQRWLRQDO1HW3URƬWDIWHU7D[3$7IRUWKH\HDUHQGHG0DUFKDIWHU 
taking into account the divergence in provisioning

18.6 The key business ratios and other information is set out below:
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
Interest income as a percentage to working funds   
1RQLQWHUHVWLQFRPHDVDSHUFHQWDJHWRZRUNLQJIXQGV  
2SHUDWLQJSURƬWDVDSHUFHQWDJHWRZRUNLQJIXQGV  
Return on assets   
3URƬWSHUHPSOR\HH` in crore)   
%XVLQHVVGHSRVLWVOHVVLQWHUEDQNGHSRVLWVSOXVDGYDQFHVSHUHPSOR\HH  
(` in crore) 

  :RUNLQJIXQGVUHSUHVHQWDYHUDJHRIWRWDODVVHWVDVUHSRUWHGWR5HVHUYH%DQNRI,QGLDLQ)RUP;XQGHU6HFWLRQ
RIWKH%DQNLQJ5HJXODWLRQ$FWGXULQJWKH\HDU
  2SHUDWLQJSURƬWLVSURƬWIRUWKH\HDUEHIRUHFRQVLGHULQJSURYLVLRQVDQGFRQWLQJHQFLHV
  3URGXFWLYLW\UDWLRVDUHEDVHGRQDYHUDJHQXPEHURIHPSOR\HHVIRUWKH\HDU

18.7 Exposures
$ ([SRVXUHWR5HDO(VWDWH6HFWRU
(` in crore)
As at As at
Category 31 March 2017 31 March 2016
a) 'LUHFWH[SRVXUH
L5HVLGHQWLDO0RUWJDJHVtUHSUHVHQWVOHQGLQJIXOO\VHFXUHGE\  
PRUWJDJHVRQUHVLGHQWLDOSURSHUW\WKDWLVRUZLOOEHRFFXSLHGE\WKH
ERUURZHURUWKDWLVUHQWHG
LL&RPPHUFLDO5HDO(VWDWH  
LLL,QYHVWPHQWVLQ0RUWJDJH%DFNHG6HFXULWLHV0%6DQGRWKHU 
VHFXULWLVHGH[SRVXUHVs
5HVLGHQWLDO 
&RPPHUFLDO5HDO(VWDWH  
b) ,QGLUHFWH[SRVXUH  
)XQGEDVHGDQGQRQIXQGEDVHGH[SRVXUHVRQ1DWLRQDO+RXVLQJ%DQN  
1+%DQG+RXVLQJ)LQDQFH&RPSDQLHV+)&V
Total Exposure to Real Estate Sector 64.82 5.11

101
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

% ([SRVXUHWR&DSLWDO0DUNHW
(` in crore)
As at As at
Category 31 March 2017 31 March 2016
'LUHFWLQYHVWPHQWVLQHTXLW\VKDUHVFRQYHUWLEOHERQGVFRQYHUWLEOHGHEHQWXUHV  
DQGXQLWVRIHTXLW\RULHQWHGPXWXDOIXQGVWKHFRUSXVRIZKLFKLVQRWH[FOXVLYHO\
invested in corporate debt
$GYDQFHVDJDLQVWVKDUHVERQGVGHEHQWXUHVRURWKHUVHFXULWLHVRURQFOHDQEDVLV  
WRLQGLYLGXDOVIRULQYHVWPHQWLQVKDUHVLQFOXGLQJ,32V(623VFRQYHUWLEOH
ERQGVFRQYHUWLEOHGHEHQWXUHVDQGXQLWVRIHTXLW\RULHQWHGPXWXDOIXQGV
$GYDQFHVIRUDQ\RWKHUSXUSRVHVZKHUHVKDUHVRUFRQYHUWLEOHERQGVRU  
FRQYHUWLEOHGHEHQWXUHVRUXQLWVRIHTXLW\RULHQWHGPXWXDOIXQGVDUHWDNHQDV
primary security
$GYDQFHVIRUDQ\RWKHUSXUSRVHVWRWKHH[WHQWVHFXUHGE\WKHFROODWHUDO  
VHFXULW\RIVKDUHVRUFRQYHUWLEOHERQGVRUFRQYHUWLEOHGHEHQWXUHVRUXQLWVRI
HTXLW\RULHQWHGPXWXDOIXQGVLHZKHUHSULPDU\VHFXULW\RWKHUWKDQVKDUHV
FRQYHUWLEOHERQGVFRQYHUWLEOHGHEHQWXUHVXQLWVRIHTXLW\RULHQWHGPXWXDO
IXQGVGRHVQRWIXOO\FRYHUWKHDGYDQFHV
6HFXUHGDQGXQVHFXUHGDGYDQFHVWRVWRFNEURNHUVDQGJXDUDQWHHVLVVXHGRQ  
EHKDOIRIVWRFNEURNHUVDQGPDUNHWPDNHUV
/RDQVVDQFWLRQHGWRFRUSRUDWHVDJDLQVWWKHVHFXULW\RIVKDUHVERQGV  
GHEHQWXUHVRURWKHUVHFXULWLHVRURQFOHDQEDVLVIRUPHHWLQJSURPRWHUoV
FRQWULEXWLRQWRWKHHTXLW\RIQHZFRPSDQLHVLQDQWLFLSDWLRQRIUDLVLQJUHVRXUFHV
%ULGJHORDQVWRFRPSDQLHVDJDLQVWH[SHFWHGHTXLW\ƮRZVLVVXHV  
Underwriting commitments taken up in respect of primary issue of shares or  
FRQYHUWLEOHERQGVRUFRQYHUWLEOHGHEHQWXUHVRUXQLWVRIHTXLW\RULHQWHG
PXWXDOIXQGV
)LQDQFLQJWRVWRFNEURNHUVIRUPDUJLQWUDGLQJ  
$OOH[SRVXUHVWR9HQWXUH&DSLWDO)XQGVERWKUHJLVWHUHGDQGXQUHJLVWHUHG  
Total Exposure to Capital Market 0.20 0.20

& 'HWDLOVRI6LQJOH%RUURZHU/LPLW6*/*URXS%RUURZHU/LPLW*%/H[FHHGHGE\WKH%DQN

 'XULQJWKH\HDUHQGHG0DUFKDQG0DUFKWKH%DQNoVFUHGLWH[SRVXUHWRVLQJOHERUURZHUDQGJURXS
ERUURZHUVZDVZLWKLQWKHSUXGHQWLDOH[SRVXUHOLPLWVSUHVFULEHGE\5%,

' 8QVHFXUHG$GYDQFHVDJDLQVW,QWDQJLEOH&ROODWHUDOV
 'XULQJWKH\HDUHQGHG0DUFKDQG0DUFKWKHUHDUHQRXQVHFXUHGDGYDQFHVIRUZKLFKLQWDQJLEOH
VHFXULWLHVVXFKDVFKDUJHRYHUWKHULJKWVOLFHQVHVDXWKRULW\HWFKDVEHHQWDNHQDVFROODWHUDOE\WKH%DQN

18.8 Miscellaneous
Disclosure of penalties imposed by RBI
 1RSHQDOW\KDVEHHQOHYLHGRQWKH%DQNE\5%,GXULQJWKHFXUUHQWDQGSUHYLRXV\HDU

102
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

18.9 (PSOR\HH%HQHƬWV     
$ *UDWXLW\     
 7KH%DQNKDVDGHƬQHGEHQHƬWJUDWXLW\SODQ(YHU\HPSOR\HHZKRKDVFRPSOHWHGƬYH\HDUVRUPRUHRIVHUYLFHLV
HOLJLEOHIRUJUDWXLW\RQGHSDUWXUHDQGLWLVFRPSXWHGDWGD\VVDODU\ODVWGUDZQVDODU\IRUHDFKFRPSOHWHG\HDURI
VHUYLFH7KHVFKHPHLVIXQGHGZLWKDQLQVXUDQFHFRPSDQ\LQWKHIRUPRITXDOLI\LQJLQVXUDQFHSROLF\

 7KHIROORZLQJWDEOHVVXPPDULVHWKHFRPSRQHQWVRIQHWEHQHƬWH[SHQVHUHFRJQLVHGLQWKHSURƬWDQGORVVDFFRXQW
DQGWKHIXQGHGVWDWXVDQGDPRXQWVUHFRJQLVHGLQWKHEDODQFHVKHHWIRUWKH*UDWXLW\SODQ

(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L 7DEOH6KRZLQJFKDQJHVLQSUHVHQWYDOXHRI'HƬQHG%HQHƬWREOLJDWLRQ
3UHVHQWYDOXHRIGHƬQHGEHQHƬWREOLJDWLRQVDVDWEHJLQQLQJRIWKH\HDU  
Interest cost  
&XUUHQWVHUYLFHFRVW  
%HQHƬW3DLG  
$FWXDULDOORVVRQREOLJDWLRQV  
3UHVHQWYDOXHRIGHƬQHGEHQHƬWREOLJDWLRQVDVDWHQGRIWKH\HDU  
LL Table showing fair value of plan assets:
)DLUYDOXHRISODQDVVHWVDVDWEHJLQQLQJRIWKH\HDU  
([SHFWHGUHWXUQRQSODQDVVHWV  
&RQWULEXWLRQVSDLG  
%HQHƬWV3DLG  
$FTXLVLWLRQ$GMXVWPHQW  
$FWXDULDOJDLQRQSODQDVVHWV  
)DLUYDOXHRISODQDVVHWVDWHQGRIWKH\HDU  
LLL $FWXDULDO*DLQ/RVVUHFRJQLVHG
$FWXDULDOORVVRQREOLJDWLRQV  
$FWXDULDOJDLQIRUWKH\HDU3ODQDVVHWV  
$FWXDULDOORVVUHFRJQLVHGLQWKH\HDU  
LY 7KHDPRXQWVWREHUHFRJQLVHGLQWKH%DODQFH6KHHWDQG3URƬWDQG
Loss Account:
3UHVHQWYDOXHRIREOLJDWLRQVDWWKHHQGRIWKH\HDU  
)DLUYDOXHRISODQDVVHWVDWWKHHQGRIWKH\HDU  
1HWOLDELOLW\UHFRJQLVHGLQEDODQFHVKHHW  
Y ([SHQVHV5HFRJQLVHGLQ3URƬWDQG/RVV$FFRXQW
&XUUHQW6HUYLFH&RVW  
,QWHUHVW&RVW  
([SHFWHGUHWXUQ  
1HW$FWXDULDOORVVUHFRJQLVHGLQWKH\HDU  
([SHQVHVUHFRJQLVHGLQSURƬWDQGORVVDFFRXQW  
$FWXDOUHWXUQRQSODQDVVHWV  
YL The Principal assumptions used in the actuarial valuation are shown below :
Discount Rate  
6DODU\(VFDODWLRQ  
:LWKGUDZDO5DWH  
([SHFWHGUDWHRIUHWXUQRQDVVHWV  

103
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
YLL Amounts for the current and previous year are as follows: [Refer note
L[EHORZ@   
D'HƬQHG%HQHƬW2EOLJDWLRQV  
E3ODQ$VVHWV  
F'HƬFLW  
G([SHULHQFHDGMXVWPHQWVRQSODQOLDELOLWLHV>*DLQ/RVV@  
H([SHULHQFHDGMXVWPHQWVRQSODQDVVHWV>*DLQ/RVV@  

(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
YLLL The Major categories of Plan Assets as a percentage of the fair value of
Total Plan Asset are as follows:
,QVXUDQFH0DQDJHG)XQG     

 L[ 7KH%DQNZDVLQFRUSRUDWHGRQ'HFHPEHU
DQGGLGQRWKDYHDQ\HPSOR\HHVLQWKH\HDU
HQGHG0DUFKKHQFHƬJXUHVIRUWKH
\HDUDUHQRWIXUQLVKHG
 LL5HWDLOBanking :
 ,QFOXGHVOHQGLQJWRLQGLYLGXDOVVPDOOEXVLQHVVHV
WKURXJKWKHEUDQFKQHWZRUNDQGRWKHUGHOLYHU\
FKDQQHOVVXEMHFWWRWKHRULHQWDWLRQQDWXUHRI
SURGXFWJUDQXODULW\RIWKHH[SRVXUHDQGORZYDOXHRI
 [ 7KHHVWLPDWHVRIIXWXUHVDODU\LQFUHDVHV
FRQVLGHUHGLQDFWXDULDOYDOXDWLRQWDNHVDFFRXQW
RILQƮDWLRQVHQLRULW\DQGRWKHUUHOHYDQWIDFWRUV
VXFKDVVXSSO\DQGGHPDQGLQWKHHPSOR\PHQW
PDUNHW
LQGLYLGXDOH[SRVXUHWKHUHRI,WDOVRLQFOXGHVOLDELOLW\
SURGXFWVFDUGVHUYLFHVLQWHUQHWEDQNLQJPRELOH
EDQNLQJ$70VHUYLFHVDQG15,VHUYLFHV$OOGHSRVLWV
VRXUFHGE\EUDQFKHVDUHFODVVLƬHGLQUHWDLOFDWHJRU\
 LLL&RUSRUDWH:KROHVDOH%DQNLQJ
 [L 7KH%DQNH[SHFWVWRFRQWULEXWH`FURUHVWR  ,QFOXGHVFRUSRUDWHUHODWLRQVKLSVQRWLQFOXGHGXQGHU
JUDWXLW\IXQGLQ3UHYLRXV<HDU` 5HWDLO%DQNLQJ
crores)
 LY2WKHU%DQNLQJ%XVLQHVV
 [LL 7KHRYHUDOOH[SHFWHGUDWHRIUHWXUQRQDVVHWVLV
GHWHUPLQHGEDVHGRQPDUNHWSULFHVSUHYDLOLQJ
RQWKDWGDWHDSSOLFDEOHWRWKHSHULRGRYHUZKLFK
WKHREOLJDWLRQLVWREHVHWWOHG
 ,QFOXGHSDUDEDQNLQJDFWLYLWLHVOLNHWKLUGSDUW\SURGXFW
distribution and other banking transaction not
FRYHUHGXQGHUDQ\RIWKHDERYHWKUHHVHJPHQWV
The Bank does not have any para banking activities
% 3URYLGHQW)XQG IRUWKH\HDUHQGHGVW0DUFK
 $PRXQWLQFXUUHGDVH[SHQVHIRUGHƬQHGFRQWULEXWLRQ
WR3URYLGHQW)XQGLV`&URUH3UHYLRXV<HDU  ,QFRPHH[SHQVHVDVVHWVDQGOLDELOLWLHVDUHHLWKHU
`&URUHV VSHFLƬFDOO\LGHQWLƬHGZLWKLQGLYLGXDOVHJPHQWVRUDUH
DOORFDWHGWRVHJPHQWVRQDV\VWHPDWLFEDVLV
18.10 Segment Reporting
$ 6HJPHQW,GHQWLƬFDWLRQ  7KHOLDELOLWLHVRIWKH%DQNDUHƬUVWXVHGE\WKHXQLWV
 3XUVXDQWWRWKHJXLGHOLQHVLVVXHGE\5%,RQ$6 JHQHUDWLQJWKHVDPH$Q\H[FHVVOLDELOLWLHVRIWKHXQLWV
6HJPHQW5HSRUWLQJ(QKDQFHPHQWRI'LVFORVXUHV DUHSRROHGWRFHQWUDOIXQGLQJXQLW7UHDVXU\
GDWHG$SULOWKHIROORZLQJEXVLQHVV 7UHDVXU\WKHQOHQGVWKHVHIXQGVWRRWKHUXQLWVDW
VHJPHQWVKDYHEHHQUHSRUWHG DSSURSULDWHUDWHV

 L7UHDVXU\ The transfer pricing mechanism of the Bank is

 7UHDVXU\RSHUDWLRQVLQFOXGHLQYHVWPHQWVLQVRYHUHLJQ SHULRGLFDOO\UHYLHZHG7KHVHJPHQWUHVXOWVDUH
VHFXULWLHVDQGWUDGLQJRSHUDWLRQV7KH7UHDVXU\ determined based on the transfer pricing mechanism
VHJPHQWDOVRLQFOXGHVWKHFHQWUDOIXQGLQJXQLW SUHYDLOLQJIRUWKHUHVSHFWLYHUHSRUWLQJSHULRGV 

104

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK
 5HYHQXHVRIWKH7UHDVXU\VHJPHQWSULPDULO\FRQVLVW
RIIHHVDQGJDLQVRUORVVHVIURPWUDGLQJRSHUDWLRQV
DQGLQWHUHVWLQFRPHRQWKHLQYHVWPHQWSRUWIROLR7KH
SULQFLSDOH[SHQVHVRIWKHVHJPHQWFRQVLVWRILQWHUHVW
H[SHQVHRQIXQGVERUURZHGIURPH[WHUQDOVRXUFHV
DQGRWKHULQWHUQDOVHJPHQWVSUHPLVHVH[SHQVHV
SHUVRQQHOFRVWVRWKHUGLUHFWRYHUKHDGVDQG
DOORFDWHGH[SHQVHV
 5HYHQXHVRIWKH&RUSRUDWH:KROHVDOH%DQNLQJ
VHJPHQWFRQVLVWRILQWHUHVWDQGIHHVHDUQHGRQORDQV
JLYHQWRFXVWRPHUVIDOOLQJXQGHUWKLVVHJPHQWDQG
IHHVDULVLQJIURPWKHVH5HYHQXHVRIWKH5HWDLO
Banking segment are derived from interest earned on
ORDQVFODVVLƬHGXQGHUWKLVVHJPHQWIHHVIRUEDQNLQJ
VHUYLFHVDQG$70LQWHUFKDQJHIHHV([SHQVHVRIWKH
&RUSRUDWH:KROHVDOH%DQNLQJDQG5HWDLO%DQNLQJ
Financcia
al sttatem
mentss
121
VHJPHQWVSULPDULO\FRPSULVHLQWHUHVWH[SHQVHRQ
GHSRVLWVDQGIXQGVERUURZHGIURPRWKHULQWHUQDO
VHJPHQWVLQIUDVWUXFWXUHDQGSUHPLVHVH[SHQVHVIRU
RSHUDWLQJWKHEUDQFKQHWZRUNDQGRWKHUGHOLYHU\
FKDQQHOVSHUVRQQHOFRVWVRWKHUGLUHFWRYHUKHDGVDQG
DOORFDWHGH[SHQVHV
 6HJPHQWLQFRPHLQFOXGHVHDUQLQJVIURPH[WHUQDO
customers and from funds transferred to the other
VHJPHQWV6HJPHQWUHVXOWLQFOXGHVUHYHQXHDV
UHGXFHGE\LQWHUHVWH[SHQVHDQGRSHUDWLQJH[SHQVHV
DQGSURYLVLRQVLIDQ\IRUWKDWVHJPHQW6HJPHQW
ZLVHLQFRPHDQGH[SHQVHVLQFOXGHFHUWDLQDOORFDWLRQV
,QWHUVHJPHQWLQWHUHVWLQFRPHDQGLQWHUHVWH[SHQVH
represent the transfer price received from and paid as
SHUWKHWUDQVIHUSULFLQJPHFKDQLVPSUHVHQWO\
IROORZHGE\WKH%DQN

% 6HJPHQW,QIRUPDWLRQ 
 L 3ULPDU\%XVLQHVV6HJPHQW
(` in crore)
&RUSRUDWH
Particulars Treasury 5HWDLO%DQNLQJ Wholesale Total
%DQNLQJ
Segment Revenue
*URVVLQWHUHVWLQFRPHH[WHUQDO    
customers)    
Other income    
   
Total income as per PURƬWDQG 531.37 3,744.02 44.73 4,320.12
Loss Account    
$GG,QWHUVHJPHQWLQWHUHVWLQFRPH    
   
Total segment revenue    
   
/HVV,QWHUHVWH[SHQVHV    
   
/HVV,QWHUVHJPHQWLQWHUHVW    
expenses    
/HVV2SHUDWLQJH[SHQVHV    
   
2SHUDWLQJ3URƬW    
   
/HVV3URYLVLRQVIRU 1.89 86.54  88.43
QRQSHUIRUPLQJDVVHWVRWKHUV    
Segment results 102.79 1,599.70 1.98 1,704.47
   
/HVVSURYLVLRQVIRUWD[ 592.52

1HWSURƬW 1,111.95

Other information

105
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

(` in crore)
&RUSRUDWH
Particulars Treasury 5HWDLO%DQNLQJ Wholesale Total
%DQNLQJ
6HJPHQWDVVHWV    
   
8QDOORFDWHGDVVHWV 

Total assets 11,478.36 18,008.58 657.69 30,236.09
   
6HJPHQWOLDELOLWLHV    
   
8QDOORFDWHGOLDELOLWLHV 

Total liabilities 5,506.93 24,577.43 95.49 30,236.09
   
&DSLWDO([SHQGLWXUH  82.27  82.27
   
Depreciation  66.85  66.85
   
 1RWHV     
 7KHEXVLQHVVRIWKH%DQNGRHVQRWH[WHQGRXWVLGH,QGLDDQGLWGRHVQRWKDYHDQ\DVVHWVRXWVLGH,QGLDRUHDUQLQJVHPDQDWLQJIURPRXWVLGH,QGLD
$FFRUGLQJO\WKH%DQNKDVUHSRUWHGRSHUDWLRQVLQWKHGRPHVWLFVHJPHQWRQO\     
 7UHDVXU\VHJPHQWOLDELOLWLHVLQFOXGHVVKDUHFDSLWDODQGUHVHUYH VXUSOXV
 3UHYLRXV\HDUƬJXUHVDUHVKRZQLQqq

18.11 Related Party disclosure

$ 1DPHVRIUHODWHGSDUWLHVDQGQDWXUHRIUHODWLRQVKLS  
Entities Nature of relationship
%DQGKDQ)LQDQFLDO6HUYLFHV/LPLWHG%)6/ 8OWLPDWH3DUHQW&RPSDQ\
%DQGKDQ)LQDQFLDO+ROGLQJV/LPLWHG 3DUHQW&RPSDQ\
Key Management Personnel
0U&KDQGUD6KHNKDU*KRVK 0DQDJLQJ'LUHFWRU &KLHI([HFXWLYH2ƯFHU
0U,QGUDQLO%DQHUMHH &RPSDQ\6HFUHWDU\
0U6XQLO6DPGDQL &KLHI)LQDQFLDO2ƯFHU
Relatives of Key Management Personnel
1LOLPD*KRVK$QJVKXPDQ*KRVK6XFKLWUD*KRVK9DVNDU*KRVK'LEDNDU*KRVK1LGKL6DPGDQL6RKDQ6DPGDQL0DQMX
6RPDQL$VKD%DKHULD8VKD.RWKDUL6DVZDWL%DQHUMHH$UDWL%DQHUMHH,VKDDQ%DQHUMHH0RXVXPL0XNKHUMHH

% 7UDQVDFWLRQVDQG%DODQFHV 
 L2XWVWDQGLQJDVDW0DUFK 
(` in crore)
Ultimate Key Relatives of Key
Parent
Particulars Parent Management Management Total
Company
company Personnel Personnel
Deposit     
    

 LL0D[LPXPRXWVWDQGLQJGXULQJWKH\HDU 
(` in crore)
Ultimate Key Relatives of Key
Parent
Particulars Parent Management Management Total
Company
company Personnel Personnel
Deposit     
    

106
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

 LLL7UDQVDFWLRQVGXULQJWKH\HDUHQGHG0DUFK  
(` in crore)
Ultimate Key Relatives of Key
Parent
Particulars Parent Management Management Total
Company
company Personnel Personnel
,QWHUHVWH[SHQGLWXUH     
    
Remuneration     
    
$FTXLVLWLRQRIDVVHWVDQGOLDELOLWLHVIURP     
%DQGKDQ)LQDQFLDO6HUYLFHV/LPLWHG  
5HLPEXUVHPHQWRIH[SHQVHV     
 
Rent     
 
3URFHHGVIURPLVVXHRIVKDUHFDSLWDO     
    
 3UHYLRXV\HDUƬJXUHVDUHVKRZQLQqq

18.127KHPDMRUFRPSRQHQWVRI'HIHUUHG7D[$VVHWV'7$DULVLQJRXWRIWLPLQJGLƪHUHQFHVDUHDVXQGHU

(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
Deferred Tax Assets
'HSUHFLDWLRQRQƬ[HGDVVHWV  
3URYLVLRQVIRUORDQORVVHV  
([SHQGLWXUHFKDUJHGWRWKHPURƬW /RVVDFFRXQWLQWKHFXUUHQW\HDUEXW  
DOORZHGIRUWD[SXUSRVHVRQSD\PHQWEDVLV
Total Deferred Tax Assets 91.46 58.80

18.13 Liability for Operating Leases

 7KH'RRUVWHSVHUYLFHFHQWUHSUHPLVHVDUHJHQHUDOO\UHQWHGRQFDQFHOODEOHWHUPVIRUOHVVWKDQWZHOYHPRQWKVZLWK
QRHVFDODWLRQFODXVHDQGUHQHZDEOHDWWKHRSWLRQRIWKH&RPSDQ\7KH+HDGRƯFHDQGWKH%DQN%UDQFKHVRƯFH
SUHPLVHVDUHREWDLQHGRQQRQFDQFHOODEOHOHDVHWHUPV/HDVHSD\PHQWGXULQJWKH\HDUDUHFKDUJHGLQWKH
statement of PURƬW LRVV     

 7KHDPRXQWRIUHQWH[SHQVHVLQFOXGHGLQWKH3URƬW /RVVDFFRXQWWRZDUGVRSHUDWLQJOHDVHVDJJUHJDWHWR`

FURUH3UHYLRXV\HDU`FURUH     

3DUWLFXODUVRIIXWXUHPLQLPXPOHDVHSD\PHQWLQUHVSHFWRI+HDGRƯFH %DQNEUDQFKHVDUHDVPHQWLRQHGEHORZ
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
D1RWODWHUWKDQ\HDU  
E/DWHUWKDQ\HDUDQGQRWODWHUWKDQ\HDUV  

107
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

18.14 Earnings per Share

 7KH%DQNUHSRUWVEDVLFDQGGLOXWHGHDUQLQJVSHUHTXLW\VKDUHLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUGp(DUQLQJV
SHU6KDUHq
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
D:HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVXVHGLQFRPSXWLQJEDVLFDQG  
GLOXWHGHDUQLQJVSHUVKDUH
E1HWSURƬW  
c) Basic earnings per share (`)  
G'LOXWHGHDUQLQJVSHUVKDUH`)  
H1RPLQDOYDOXHSHUVKDUH`)  

18.15 Small and Micro Industries

 8QGHUWKH0LFUR6PDOODQG0HGLXP(QWHUSULVHV'HYHORSPHQW$FWZKLFKFDPHLQWRIRUFHIURP2FWREHU
FHUWDLQGLVFORVXUHVDUHUHTXLUHGWREHPDGHUHODWLQJWR0LFUR6PDOODQG0HGLXPHQWHUSULVHV7KHUHKDYHEHHQ
QRUHSRUWHGFDVHVRIGHOD\VLQSD\PHQWVWRPLFURDQGVPDOOHQWHUSULVHVRURILQWHUHVWSD\PHQWVGXHWRGHOD\VLQ
VXFKSD\PHQWV7KHDERYHLVEDVHGRQWKHLQIRUPDWLRQDYDLODEOHZLWKWKH%DQNZKLFKKDVEHHQUHOLHGXSRQE\WKH
DXGLWRUV     

18.16 Description of Contingent Liabilities

 D &ODLPVDJDLQVWWKH%DQNQRWDFNQRZOHGJHGDVGHEWV
  7KHVHUHSUHVHQWFODLPVƬOHGDJDLQVWWKH%DQNLQWKHQRUPDOFRXUVHRIEXVLQHVV

 E *XDUDQWHHVJLYHQRQEHKDOIRIFRQVWLWXHQWV
  $
 VDSDUWRILWVEDQNLQJDFWLYLWLHVWKH%DQNLVVXHVJXDUDQWHHVRQEHKDOIRILWVFXVWRPHUVWRHQKDQFHWKHLUFUHGLW
VWDQGLQJ*XDUDQWHHVUHSUHVHQWLUUHYRFDEOHDVVXUDQFHVWKDWWKH%DQNZLOOPDNHSD\PHQWVLQWKHHYHQWRIWKH
FXVWRPHUIDLOLQJWRIXOƬOOLWVƬQDQFLDORUSHUIRUPDQFHREOLJDWLRQV

 F 2WKHULWHPV
  2
 WKHULWHPVUHSUHVHQWRXWVWDQGLQJDPRXQWRIHVWLPDWHGDPRXQWRIFRQWUDFWVUHPDLQLQJWREHH[HFXWHGRQ
FDSLWDODFFRXQW

18.17 Additional Disclosures

 $ )ORDWLQJ3URYLVLRQV
  7KH%DQNGRHVQRWKDYHDQ\ƮRDWLQJSURYLVLRQDVDW0DUFKDQG0DUFK

 % 'UDZ'RZQIURP5HVHUYH
  7KHUHKDVEHHQQRGUDZGRZQIURPUHVHUYHVGXULQJWKH\HDUHQGHG0DUFKDQG0DUFK

 & 'LVFORVXUHRICustomer Complaints

 L &XVWRPHU&RPSODLQWV
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L1RRIFRPSODLQWVSHQGLQJDWWKHEHJLQQLQJRIWKH\HDU 1LO 1LO
LL1RRIFRPSODLQWVUHFHLYHGGXULQJWKH\HDU  
LLL1RRIFRPSODLQWVUHGUHVVHGGXULQJWKH\HDU  
LY1RRIFRPSODLQWVSHQGLQJDWWKHHQGRIWKH\HDU 1LO 1LO

108
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

 LL $ZDUGVSDVVHGE\WKH%DQNLQJ2PEXGVPDQ 
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L1RRIXQLPSOHPHQWHG$ZDUGVDWWKHEHJLQQLQJRIWKH\HDU 1LO 1LO
LL1RRI$ZDUGVSDVVHGE\WKH%DQNLQJ2PEXGVPDQGXULQJWKH\HDU 1LO 1LO
LLL1RRI$ZDUGVLPSOHPHQWHGGXULQJWKH\HDU 1LO 1LO
LY1RRIXQLPSOHPHQWHG$ZDUGVDWWKHHQGRIWKH\HDU 1LO 1LO

LLL$70UHODWHGFRPSODLQWV
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L1RRIFRPSODLQWVSHQGLQJDWWKHEHJLQQLQJRIWKH\HDU 1LO 1LO
LL1RRIFRPSODLQWVUHFHLYHGGXULQJWKH\HDU  1LO
LLL1RRIFRPSODLQWVUHGUHVVHGGXULQJWKH\HDU  1LO
LY1RRIFRPSODLQWVSHQGLQJDWWKHHQGRIWKH\HDU 1LO 1LO

 7KHDERYHLQIRUPDWLRQLVDVFHUWLƬHGE\WKH0DQDJHPHQWDQGUHOLHGXSRQE\WKHDXGLWRUV

' /HWWHURI&RPIRUW/2&LVVXHGE\WKH%DQN

 7KH%DQNKDVQRWLVVXHGDQ\/HWWHURI&RPIRUW/2&GXULQJWKH\HDUHQGHG0DUFKDQG0DUFK

( 3URYLVLRQFRYHUDJHUDWLR
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
7KHSURYLVLRQFRYHUDJHUDWLRRIWKH%DQNFRPSXWHGLQWHUPVRIWKH5%,JXLGHOLQHV  

) %DQFDVVXUDQFH%XVLQHVV
 7KH%DQNKDVQRWHQJDJHGLQEDQFDVVXUDQFHEXVLQHVVGXULQJWKH\HDUHQGHG0DUFKDQG0DUFK

* &RQFHQWUDWLRQRI'HSRVLWV$GYDQFHV([SRVXUHV 13$V
 ,&RQFHQWUDWLRQRI'HSRVLWV
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L7RWDO'HSRVLWVRIWZHQW\ODUJHVWGHSRVLWRUV  
LL3HUFHQWDJHRI'HSRVLWVRIWZHQW\ODUJHVWGHSRVLWRUVWR7RWDO'HSRVLWVRIWKHEDQN  

 ,,&RQFHQWUDWLRQRI$GYDQFHV
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L7RWDO$GYDQFHVWRWZHQW\ODUJHVWERUURZHUV  
LL3HUFHQWDJHRI$GYDQFHVWRWZHQW\ODUJHVWERUURZHUVWR7RWDO$GYDQFHVRIWKH%DQN  

109
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

 ,,,&RQFHQWUDWLRQRI([SRVXUHV    
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
L7RWDO([SRVXUHWRWZHQW\ODUJHVWERUURZHUVFXVWRPHUV  
LL3HUFHQWDJHRI([SRVXUHVWRWZHQW\ODUJHVWERUURZHUVFXVWRPHUVWRWRWDO  
H[SRVXUHRIWKHEDQNRQERUURZHUVFXVWRPHUV

 ,9&RQFHQWUDWLRQRI13$V   
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
7RWDO([SRVXUHWRWRSIRXU13$DFFRXQWV     

 90RYHPHQWRI13$V    
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
*URVV13$VDVRQ$SULO  
$GGLWLRQV)UHVK13$VGXULQJWKH\HDU  
6XEWRWDO$  
/HVV
(i) Upgradations  
LL5HFRYHULHVH[FOXGLQJUHFRYHULHVPDGHIURPXSJUDGHGDFFRXQWV  
LLL7HFKQLFDO3UXGHQWLDO:ULWHRƪV  
LY:ULWHRƪVRWKHUWKDQWKRVHXQGHULLLDERYH  
6XEWRWDO%  
*URVV13$VDVRQ0DUFK$% 86.26 18.77

 9,0RYHPHQWRI7HFKQLFDO3UXGHQWLDO:ULWWHQRƪAccounts
(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
2SHQLQJEDODQFHRI7HFKQLFDO3UXGHQWLDOWULWWHQRƪAccounts  
$GG3UXGHQWLDO7HFKQLFDOWULWHRƪVGXULQJWKH\HDU  
6XE7RWDO$  
/HVV5HFRYHULHVPDGHIURPSUHYLRXVO\THFKQLFDOǖ3UXGHQWLDOWULWWHQRƪ  
Accounts during the year (B)
&ORVLQJ%DODQFH$%  

 9,,2YHUVHDV$VVHWV13$VDQG5HYHQXH     
 7KH%DQNGRHVQRWKDYHDQ\RYHUVHDVDVVHWVDVRQ0DUFKDQG0DUFK

 9,,,2ƪEDODQFH6KHHW639VVSRQVRUHG     
 7KH%DQNKDVQRWVSRQVRUHGDQ\VSHFLDOSXUSRVHVYHKLFOHZKLFKLVUHTXLUHGWREHFRQVROLGDWHGDVSHU
DFFRXQWLQJQRUPV

110
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

18.18 Disclosure of Provision for Frauds

(` in crore)
As at As at
Particulars
31 March 2017 31 March 2016
1RRI)UDXGVUHSRUWHGGXULQJWKH\HDUWR5HVHUYH%DQNRI,QGLD  
$PRXQWLQYROYHGLQVXFK)UDXGV  
Provision made during the year  
Unamortised provision debited from other reserve  

18.19 Disclosures on Remuneration (iii) To oversee the framing, review and

Qualitative Disclosures LPSOHPHQWDWLRQRIFRPSHQVDWLRQSROLF\RI
 D ,QIRUPDWLRQUHODWLQJWRWKHFRPSRVLWLRQDQG the Bank and recommend to the Board the
mandate of the Remuneration Committee. RYHUDOOUHPXQHUDWLRQSKLORVRSK\DQGSROLF\
The Bank’s Nomination and Remuneration LQFOXGLQJWKHOHYHODQGVWUXFWXUHRIƬ[HG
&RPPLWWHH15&RYHUVHHVWKHIUDPLQJUHYLHZ SD\YDULDEOHSD\SHUTXLVLWHVERQXVSRRO
DQGLPSOHPHQWDWLRQRIWKH&RPSHQVDWLRQ3ROLF\ VWRFNEDVHGUHPXQHUDWLRQWRHPSOR\HHV
RQEHKDOIRIWKH%RDUGRI'LUHFWRUV7KH15&
UHYLHZVWKHSROLF\DWOHDVWRQFHD\HDUWRHQVXUH
WKDWWKHUHZDUGGHVLJQLVDOLJQHGWRLQGXVWU\
EHVWSUDFWLFHVDQGLVFRQVLVWHQWZLWKHƪHFWLYH
ULVNPDQDJHPHQWDQGORQJWHUPEXVLQHVV
LQWHUHVWVRIWKH%DQN7KH15&ZRUNVLQFORVH
coordination with the Risk Management
&RPPLWWHHRIWKH%DQNWRDFKLHYHWKHHƪHFWLYH
DOLJQPHQWEHWZHHQUHPXQHUDWLRQDQGULVNV
  $
 VRQ0DUFKWKH15&FRPSULVHVRIWKH
IROORZLQJGLUHFWRUV   
  LY 7RRYHUVHHWKHIUDPLQJLPSOHPHQWDWLRQ
and review of the Remuneration of the
:7'V0'&(2VDVSHUWKH5%,*XLGHOLQHV
DQG&RPSDQLHV$FW7KH&RPPLWWHH
VKDOOUHFRPPHQGWRWKH%RDUGWKH
remuneration package for the Managing
'LUHFWRU &(2DQGWKHRWKHU:KROH7LPH
'LUHFWRUVsLQFOXGLQJWKHOHYHORIƬ[HGSD\
YDULDEOHSD\VWRFNEDVHG5HPXQHUDWLRQ
DQGSHUTXLVLWHV
  Y 7RUHYLHZWKH+5VWUDWHJ\DQGSROLF\
  6KUL%KDVNDU6HQ&KDLUPDQ LQFOXGLQJWKHFRQGXFWDQGHWKLFVRIWKH
  6KUL%6DPEDPXUWK\ %DQNDQGUHYLHZDQ\IXQGDPHQWDOFKDQJHV
  6KUL6QHKRPR\%KDWWDFKDU\D LQWKHRUJDQL]DWLRQVWUXFWXUHZKLFKFRXOG
  6
 KUL5DQRGHE5R\ZLWKHƪHFWIURPWK have wide ranging and high risk
6HSWHPEHU LPSOLFDWLRQV     
  6KUL&KDQGUD6KHNKDU*KRVK
(vi) To review and recommend to the Board,
  7
 KH15&IXQFWLRQVZLWKWKHIROORZLQJPDLQ WKHVXFFHVVLRQSROLF\DWWKHOHYHORI
REMHFWLYHV 0DQDJLQJ'LUHFWRU &(2RWKHU:7'V
VHQLRUPDQDJHPHQWRQHOHYHOEHORZWKH
  L 7RLGHQWLI\SHUVRQVZKRDUHTXDOLƬHGWR %RDUGDQGNH\UROHV
become directors in accordance with the
FULWHULDODLGGRZQUHFRPPHQGWRWKH%RDUG
WKHLUDSSRLQWPHQWUHDSSRLQWPHQWRU
UHPRYDODQGWRFDUU\RXWHYDOXDWLRQRI
HYHU\'LUHFWRUoVSHUIRUPDQFH
  E ,QIRUPDWLRQUHODWLQJWRWKHGHVLJQDQG
structure of remuneration processes
and the key features and objectives of
remuneration policy
   2EMHFWLYHVRIWKH5HPXQHUDWLRQ3ROLF\
  LL 7RIRUPXODWHWKHFULWHULDIRUGHWHUPLQLQJ
TXDOLƬFDWLRQVSRVLWLYHDWWULEXWHVDQG
independence of a Director and decide
WKHLUnƬW SURSHUoVWDWXV
   7
 KH&RPSHQVDWLRQ3ROLF\UHƮHFWVWKH
%DQNoVREMHFWLYHVIRUJRRGFRUSRUDWH
JRYHUQDQFHDVZHOODVVXVWDLQHGDQG
ORQJWHUPYDOXHFUHDWLRQIRUVWDNHKROGHUV
The aims of the Bank’s remuneration
IUDPHZRUNDUHWR
111
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

  L $WWUDFWPRWLYDWHDQGUHWDLQSHRSOHZLWK   LLL (ƪHFWLYHVXSHUYLVRU\RYHUVLJKWDQG

UHTXLVLWHVNLOOH[SHULHQFHDQGDELOLW\WR HQJDJHPHQWE\VWDNHKROGHUV
GHOLYHUWKH%DQNoVVWUDWHJ\
  'HVLJQ 6WUXFWXUHRI5HPXQHUDWLRQSURFHVV
  LL &UHDWHDQDOLJQPHQWDQGEDODQFHEHWZHHQ   7
 KHWRWDOFRPSHQVDWLRQLVDSUXGHQWPL[RIƬ[HG
WKHUHZDUGVDQGULVNH[SRVXUHRI UHPXQHUDWLRQDQGSHUIRUPDQFHEDVHGYDULDEOH
VKDUHKROGHUVDQGLQWHUHVWVRIHPSOR\HHV remuneration

  LLL /LQNUHZDUGVWRFUHDWLRQRIORQJWHUP   7KHNH\UHPXQHUDWLRQHOHPHQWVDUH

VXVWDLQDEOHVKDUHKROGHUYDOXHFRQVLVWHQW
ZLWKVWUDWHJLFJRDOVDQGDSSURSULDWHULVN   )L[HG3D\
PDQDJHPHQW    'LVFUHWLRQDU\3HUIRUPDQFHEDVHG
Variable Remuneration
iv) Encourage behaviour consistent with the
%DQNoVYDOXHVDQGSULQFLSOHV   7
 KH%DQNHQVXUHVWKDWWKHƬ[HGSD\HOHPHQWLV
UHDVRQDEOHWDNLQJLQWRDFFRXQWWKHPDUNHWUDWHV
  7
 RDFKLHYHWKHDERYHREMHFWLYHVWKHSKLORVRSK\ DQGWUHQGV7KHƬ[HGSD\LVUHYLHZHGDQQXDOO\
DGRSWHGE\WKH%DQNLVDVIROORZV XVLQJPDUNHWLQWHOOLJHQFHSURYLGHGE\DOHDGLQJ
JOREDOSHUIRUPDQFHUHZDUGFRQVXOWLQJDQG
  L 0DUNHWUHIHUHQFHGRƪHUHPSOR\HHV EHQFKPDUNLQJƬUPIRUƬQDQFLDOVHUYLFHVLQGXVWU\
FRPSHWLWLYHVDODU\DFKLHYHGWKURXJK to ensure that the Bank remains competitive in
EHQFKPDUNLQJZLWKSHHUJURXSV PDUNHWSODFHDQGWKDWWKH%DQNLVDEOHWRDWWUDFW
DQGUHWDLQEHVWWDOHQW7KHOHYHORIƬ[HGSD\VKDOO
  LL 0DNLQJƬ[HGVDODU\WKHPDLQUHPXQHUDWLRQ EHVXƯFLHQWHQRXJKLQRUGHUWRGLVFRXUDJH
FRPSRQHQW LQDSSURSULDWHULVNWDNLQJ

  LLL (QVXUHWKDWMREVRIVLPLODULQWHUQDOYDOXHDUH   3
 HUIRUPDQFHEDVHGYDULDEOHUHPXQHUDWLRQPD\
grouped and pegged within a range guided FRPSULVHFDVKERQXVVWRFNOLQNHGLQVWUXPHQWV
E\PDUNHWEHQFKPDUNHGMREV DQGLVDZDUGHGE\HQVXULQJ

  LY 5LVNIDFWRULQJ$VLJQLƬFDQWSRUWLRQRIWKH   L DQDSSURSULDWHEDODQFHEHWZHHQƬ[HGDQG
senior and top management compensation SHUIRUPDQFHEDVHGFRPSRQHQWV
ZLOOEHYDULDEOHRIZKLFKIRUVRPHNH\
UROHVSDUWRIWKHYDULDEOHFRPSHQVDWLRQ   LL WKDWWKHƬ[HGFRPSRQHQWUHSUHVHQWVD
PD\EHGHIHUUHG KLJKHUSURSRUWLRQRIWKHWRWDO
UHPXQHUDWLRQ
  Y )RFXVRQn7RWDOUHZDUGVoDOODVSHFWVRI
FRPSHQVDWLRQUHZDUGVDQGZHOOGHƬQHG   LLL WKDWWKHSHUIRUPDQFHEDVHGFRPSRQHQW
EHQHƬWVLQFOXGLQJUHZDUGLQJZRUN UHƮHFWVWKHULVNXQGHUO\LQJWKHDFKLHYHG
HQYLURQPHQWDQGSHUVRQDOGHYHORSPHQW UHVXOW

  YL 7KHIRFXVZLOOEHWRHQVXUHWKDWWKH%DQNLV
FRPSHWLWLYHLQLWVRYHUDOOVDODU\RƪHUWRLWV
HPSOR\HHVZLWKRXWEHLQJH[FHVVLYHO\
H[SHQVLYHIRUWKH%DQN
  7
 KHFRPSHQVDWLRQVWUXFWXUHIRUWKH0' &(2
DOVRPLUURUVWKH%DQNoVSKLORVRSK\RIDOLJQLQJ
ZLWKWKHSULQFLSOHVRIVRXQGFRPSHQVDWLRQ
SUDFWLFHVWRHQVXUH
  LY WKDWDSDUWRIWKHSHUIRUPDQFHEDVHG
FRPSRQHQWPD\EHGHIHUUHG
v) that no hedging of deferred shares takes
SODFH
  3
 UHVHQWO\WKHEDQNXWLOLVHVRQO\RQHIRUPRI
SHUIRUPDQFHEDVHGYDULDEOHUHPXQHUDWLRQ
YL]FDVKERQXV6WRFNOLQNHGLQVWUXPHQWVDQG
(623VDVDQGZKHQLPSOHPHQWHGVKDOOEH
  L (ƪHFWLYHDQGLQGHSHQGHQWJRYHUQDQFHRI IRUPXODWHGLQDFFRUGDQFHZLWKUHOHYDQW
FRPSHQVDWLRQ VWDWXWRU\SURYLVLRQVDQGUHJXODWRU\JXLGHOLQHV

  LL (ƪHFWLYHDOLJQPHQWRIFRPSHQVDWLRQZLWK   7
 KHFRPSHQVDWLRQSROLF\RIWKH%DQNLVUHYLHZHG
SUXGHQWULVNWDNLQJ E\WKH15&DQGDSSURYHGE\WKH%RDUGRI

112
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

'LUHFWRUV7KH15&RYHUVHHVWKHLPSOHPHQWDWLRQ
RIWKHSROLF\DQGUHYLHZVWKHƬ[HGSD\LQFUHDVHV
WKHRUJDQL]DWLRQDOSHUIRUPDQFHWKUHVKROGIRU
bonus to be paid, cash bonus and deferred
YDULDEOHUHPXQHUDWLRQ
   7
 KH%DQNoVFRPSHQVDWLRQSROLF\DLPVWR
HQVXUHWKDWERWKH[DQWHHVWLPDWHVDQG
H[SRVWRXWFRPHVRIULVNDƪHFWSD\RƪVVR
that one or the other, can better address
WKHYDULRXVVLWXDWLRQVRUULVNV

 F 'HVFULSWLRQRIWKHZD\VLQZKLFKFXUUHQWDQG
future risks are taken into account in the
remuneration process
  7
 KH0' &(2HPSOR\HHVLQWKHJUDGHVRI693V
DQGDERYHDQGHPSOR\HHVHQJDJHGLQWKH
IXQFWLRQVRI5LVN&RQWURODQG&RPSOLDQFHDUH
LQFOXGHGLQWKHSROLF\RIULVNDOLJQPHQWRI
FRPSHQVDWLRQ
  7
 KHDOLJQPHQWRIFRPSHQVDWLRQWRSUXGHQWULVN
WDNLQJLVHQVXUHGWKURXJKWKHIROORZLQJ account any risks of the business activities, the
 G 'HVFULSWLRQRIWKHZD\VLQZKLFKWKH
Bank seeks to link performance, during a
performance measurement period with levels
of remuneration
The Bank has a performance measurement
IUDPHZRUNLQSODFHWRDVVHVVWKHDFKLHYHPHQWV
RIWKHRUJDQL]DWLRQDVDZKROHLWVEXVLQHVVOLQHV
DQGRUJDQL]DWLRQDOXQLWVDVZHOODVLQGLYLGXDO
HPSOR\HHV,QRUGHUWRPD[LPLVHWKHLQFHQWLYHWR
GHOLYHUDGHTXDWHSHUIRUPDQFHDQGWRWDNHLQWR
%DQNVHHNVWRFORVHO\OLQNUHPXQHUDWLRQ
  L 6WUXFWXUHRIUHPXQHUDWLRQLVVXFKWKDWD RXWFRPHVZLWKSHUIRUPDQFHDQGULVNRXWFRPHV
VLJQLƬFDQWSDUWRISHUIRUPDQFHEDVHG $FFRUGLQJO\WKH%DQNoVSHUIRUPDQFH
YDULDEOHUHPXQHUDWLRQLVGHIHUUHG PDQDJHPHQWDQGFRPSHQVDWLRQSKLORVRSK\LV
GHVLJQHGLQDPDQQHUWRKHOSDFKLHYHWKH%DQNoV
  LL 3HUIRUPDQFHKXUGOHVLQFOXGHVƬQDQFLDODQG EXVLQHVVREMHFWLYHV
QRQƬQDQFLDOSDUDPHWHUVHQVXULQJ
FRPSHQVDWLRQLVDOLJQHGWRERWK The performance management system in the
%DQNLVDOLJQHGWRWKHEDODQFHGVFRUHFDUG
  LLL )L[HG6DODU\LVUHDVRQDEOHDQGVXƯFLHQW DSSURDFK7KHJRDOVHWWLQJSURFHVVKHOSV
thereby discouraging inappropriate risk LQGLYLGXDOVWRKDYHFODULW\RQWKHLUUROHVDQGDOLJQ
WDNLQJ WKHLUSURƬOHVLQOLQHZLWKWKHEURDGRUJDQL]DWLRQ
VWUDWHJ\%RWKTXDQWLWDWLYHƬQDQFLDODQG
  LY $QQXDO%RQXV3ODQLVPDQDJHGZLWKDQG TXDOLWDWLYHQRQƬQDQFLDOSHUIRUPDQFH
LQGHSHQGHQWJRYHUQDQFHIUDPHZRUN PHDVXUHVDUHFRQVLGHUHG7KHTXDOLWDWLYHRU
QRQƬQDQFLDOPHDVXUHVLQFOXGHFXVWRPHUVHUYLFH
  Y 9DULDEOHUHPXQHUDWLRQDZDUGVDUH
FRQGLWLRQDOGLVFUHWLRQDU\DQGFRQWLQJHQW
XSRQDVXVWDLQDEOHDQGULVNDGMXVWHG
SHUIRUPDQFH7KH\DUHWKHUHIRUHFDSDEOHRI
forfeiture or reduction at the Bank’s
GLVFUHWLRQ
DGKHUHQFHWRULVNDQGFRPSOLDQFHVWDQGDUGV
EHKDYLRXUDQGYDOXHVVXFKDVDFFRXQWDELOLW\
WHDPZRUNHWFZKLFKEXLOGVDFXOWXUHFRQGXFLYH
WRVXVWDLQDEOHEXVLQHVVSHUIRUPDQFH
  7
 KHSHUIRUPDQFHDSSUDLVDOSURFHVVVWDUWVZLWK
WKHHPSOR\HHFRQGXFWLQJVHOIDSSUDLVDOIROORZHG
  YL )RUHPSOR\HHVLQFOXGHGLQWKHSROLF\RIULVN
DOLJQPHQWRIFRPSHQVDWLRQ15&KDVWKH
GLVFUHWLRQWRDSSO\PDOXVDQGFODZEDFNsH[
SRVWULVNDGMXVWPHQWDOORZLQJWKH%DQNWR
DGMXVWSUHYLRXVO\DZDUGHGUHPXQHUDWLRQWR
WDNHDFFRXQWRIVXEVHTXHQWSHUIRUPDQFH
DQGSRWHQWLDOULVNRXWFRPHVDQGWKXV
HQDEOLQJWRUHFRXSYDULDEOHSD\LQWKHHYHQW
RIDQHJDWLYHFRQWULEXWLRQ
   'HIHUUDORI9DULDEOH3D\
To ensure that risk measures are not
IRFXVVHGRQO\RQWKHDFKLHYHPHQWRIVKRUW
WHUPJRDOVYDULDEOHSD\RXWLVGHIHUUHGLILW
H[FHHGVRIWKHƬ[HGSD\
E\WKHDVVHVVPHQWRIWKHVXSHUYLVRUYLDDSSUDLVDO
IHHGEDFNDQGGLVFXVVLRQ)RUDOOHPSOR\HHVRI
WKH%DQNKDOI\HDUO\DSSUDLVDOLVIROORZHGE\WKH
DQQXDODSSUDLVDO7KHPLG\HDUIHHGEDFNSURFHVV
LQFOXGHVIHHGEDFNRQSHUIRUPDQFHDQGRQ
FRPSHWHQFLHVZLWKDQREMHFWLYHRIDPLGFRXUVH
UHYLHZWRKHOSSODQDQGSULRULWLVHFRUUHFWLYH
DFWLRQVIRUHPSOR\HHVWRUHPDLQDOLJQHGWR
DFKLHYHPHQWRIWKHLUEXVLQHVVJRDOVDQG
VHOIGHYHORSPHQW7KHSHUIRUPDQFHDSSUDLVDO
UDWLQJVLVUHYLHZHGFDOLEUDWHGE\DFRPPLWWHH
FRPSULVLQJVHQLRUOHDGHUV
  ,QGLYLGXDOƬ[HGSD\LQFUHDVHVDQGYDULDEOH
UHPXQHUDWLRQDUHEDVHGRQWKHƬQDO
113
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

SHUIRUPDQFHUDWLQJV,QDGGLWLRQWKHƬ[HGSD\  &DWHJRU\,     
LQFUHDVHLVDOVRLQƮXHQFHGE\DQHPSOR\HHoV  L 9DULDEOH5HPXQHUDWLRQZLOOQRWH[FHHGRI
SRVLWLRQLQWKHVDODU\UDQJHDQGUHOHYDQWPDUNHW DQQXDO)L[HG3D\
VDODULHV3HUIRUPDQFHUHODWHGYDULDEOH
FRPSHQVDWLRQLVOLQNHGWRFRUSRUDWH
performance, business performance and
LQGLYLGXDOSHUIRUPDQFH7KHSHUIRUPDQFHUDWLQJV
EDVHGERQXVGLVWULEXWLRQPDWUL[LVUHYLHZHGE\
WKH15&    
 LL ,IWKH9DULDEOH5HPXQHUDWLRQH[FHHGVRI
DQQXDO)L[HG3D\RIWKH9DULDEOH
5HPXQHUDWLRQZLOOEHGHIHUUHGRYHUDSHULRGRI
\HDUVRQDSURSRUWLRQDWHEDVLV
 LLL ,QFDVHWKHYDULDEOHUHPXQHUDWLRQLVDPL[RIFDVK
  (
 PSOR\HHVHQJDJHGLQDOOFRQWUROIXQFWLRQV
LQFOXGLQJ&RPSOLDQFHDQG5LVNGRQRWFDUU\
EXVLQHVVSURƬWWDUJHWVLQWKHLUJRDOVKHHWVDQG
hence are compensated based on their
DFKLHYHPHQWRINH\UHVXOWDUHDVDVSHUWKH
EDODQFHVFRUHFDUG7KHDLPLVWRHQVXUHWKDWWKH
UHPXQHUDWLRQV\VWHPDQGRXWFRPHVUHODWLQJWR
DQGVWRFNOLQNHGLQVWUXPHQWVRWKHUWKDQ(623
DSURSHUEDODQFHEHWZHHQFDVKDQGVKDUHVWRFN
OLQNHGLQVWUXPHQWVZLOOEHHQVXUHG
iv) In the event of negative contributions of the
%DQNWKHXQYHVWHGGHIHUUHGYDULDEOH
UHPXQHUDWLRQRIWKHUHIHUHQFH\HDUZLOOEHKHOG
VXFKFRQWUROIXQFWLRQVPDLQWDLQWKH EDFNPDOXV,QVXFKFDVHVWKHYHVWHGSDLG
independence of the function and Bank’s robust YDULDEOHUHPXQHUDWLRQZLOODOVREHVXEMHFWWR
ULVNPDQDJHPHQWIUDPHZRUN VXLWDEOHFODZEDFNDUUDQJHPHQWV

  ,QWKHFDVHRISHUIRUPDQFHHYDOXDWLRQRIWKH  &DWHJRU\,,
0DQDJLQJ'LUHFWRUDQG&KLHI([HFXWLYH2ƯFHU  L 7KHPL[RI)L[HG3D\DQG9DULDEOHUHPXQHUDWLRQ
RIWKH%DQNIDFWRUVVXFKDVƬQDQFLDO ZLOOEHZHLJKHGWRZDUGV)L[HG3D\
performance measures, cost management
LQLWLDWLYHVRWKHUVWUDWHJLFLQLWLDWLYHVSUXGHQWLDO  LL 7KHSDUDPHWHUVRIDVVHVVPHQWZLOOEH
ULVNDQGFRPSOLDQFHPDQDJHPHQWUHFRJQLWLRQ independent of the performance of the business
DQGDZDUGVWRWKH%DQNHWFLVWDNHQLQWR DUHDVWKH\RYHUVHH
account, which may vary from year to year
GHSHQGLQJRQWKH%DQNoVVWUDWHJLFSULRULWLHV  LLL 7KHFRPSHQVDWLRQZLOOEHFRPPHQVXUDWHWR
%DVHGRQWKHLQSXWVIURP15&WKH%RDUG WKHLUNH\UROHLQWKH%DQN
reviews the performance and recommends the
rate of bonus to be paid, and the increments for  &DWHJRU\,,,
WKH0' &(2IRUUHJXODWRU\DSSURYDOLQWHUPV  L 9DULDEOH5HPXQHUDWLRQZLOOEHDVSHUWKH15&
RI6HFWLRQ%RIWKH%DQNLQJ5HJXODWLRQ$FW DSSURYHGSD\RXWOHYHOVLQWHUPVRIJUDGHDQG
%5$FW UROHPDWUL[

 H %DQNoVSROLF\RQGHIHUUDODQGYHVWLQJRI  LL ,QFDVHWKHYDULDEOHUHPXQHUDWLRQLVDPL[RIFDVK
YDULDEOHUHPXQHUDWLRQDQGEDQNoVSROLF\DQG DQGVWRFNOLQNHGLQVWUXPHQWVRWKHUWKDQ(623
criteria for adjusting deferred remuneration DSURSHUEDODQFHEHWZHHQFDVKDQGVKDUHVWRFN
before vesting and after vesting. OLQNHGLQVWUXPHQWVZLOOEHHQVXUHG
  ,QWHUPVRI5%,JXLGHOLQHVWKH&RPSHQVDWLRQ
3ROLF\VSHFLƬFDOO\DGGUHVVHVWKHIROORZLQJ  LLL ,IWKH9DULDEOH5HPXQHUDWLRQH[FHHGVRI
FDWHJRULHVRIHPSOR\HHV     DQQXDO)L[HG3D\RIWKH9DULDEOH
5HPXQHUDWLRQZLOOEHGHIHUUHGRYHUDSHULRGRI
\HDUVRQDSURSRUWLRQDWHEDVLV
  &
 DWHJRU\,0' &(2:KROH7LPH'LUHFWRUV
  &DWHJRU\,,5LVN&RQWURODQG&RPSOLDQFH6WDƪ iv) In the event of negative contributions of the
  &DWHJRU\,,,2WKHU&DWHJRULHVRI6WDƪ UHOHYDQWOLQHRIEXVLQHVVWKHXQYHVWHGGHIHUUHG
YDULDEOHUHPXQHUDWLRQRIWKHUHIHUHQFH\HDUZLOO
  7
 KHIROORZLQJSULQFLSOHVDUHDSSOLHGIRUJUDQW EHKHOGEDFNPDOXV,QVXFKFDVHVWKHYHVWHG
DQGGHIHUUDORISHUIRUPDQFHEDVHGYDULDEOH SDLGYDULDEOHUHPXQHUDWLRQZLOODOVREHVXEMHFWWR
remuneration for the above categories VXLWDEOHFODZEDFNDUUDQJHPHQWV
RIHPSOR\HHV

114
 Financcia
al sttatem
mentss

121
Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

  1
 HJDWLYHFRQWULEXWLRQRIWKH%DQNDQGRU  I 'HVFULSWLRQRIWKHGLƪHUHQWIRUPVRIYDULDEOH
UHOHYDQWOLQHRIEXVLQHVVLVGHƬQHGDV UHPXQHUDWLRQLHFDVKVKDUHV(623VDQG
RWKHUIRUPVWKDWWKHEDQNXWLOLVHVDQGWKH
 L ,IWKHUHLVUHDVRQDEOHHYLGHQFHRIHPSOR\HH
PDOIHDVDQFHDQGEUHDFKRILQWHJULW\RU
ii) If the performance, decisions or actions taken
OHDGVWRWKH%DQNRUWKHUHOHYDQWEXVLQHVVXQLW
VXƪHULQJDVLJQLƬFDQWPDWHULDOGRZQWXUQLQLWV
ƬQDQFLDOSHUIRUPDQFH
 4XDQWLWDWLYHGLVFORVXUHV
 7KHTXDQWLWDWLYHGLVFORVXUHVSHUWDLQLQJWRWKH0' &(2HPSOR\HHVLQWKHJUDGHVRI693VDQGDERYHIRUWKH\HDU
HQGHG0DUFKDUHJLYHQEHORZ
Particulars
UDWLRQDOHIRUXVLQJWKHVHGLƪHUHQWIRUPV
  7
 KH%DQNSUHVHQWO\XWLOLVHVRQO\RQHIRUPRI
YDULDEOHUHPXQHUDWLRQYL]FDVKERQXVZKLFKLV
OLQNHGWRFRUSRUDWHSHUIRUPDQFHEXVLQHVV
SHUIRUPDQFHDQGLQGLYLGXDOSHUIRUPDQFH
HQVXULQJGLƪHUHQWLDOSD\EDVHGRQWKH
SHUIRUPDQFH6WRFNOLQNHGLQVWUXPHQWVDQG
(623VDVDQGZKHQLPSOHPHQWHGVKDOOEH
IRUPXODWHGLQDFFRUGDQFHZLWKUHOHYDQW
VWDWXWRU\SURYLVLRQVDQGUHJXODWRU\JXLGHOLQHV
As at As at
31 March 2017 31 March 2016
a) L1XPEHURIPHHWLQJVKHOGE\WKH5HPXQHUDWLRQ&RPPLWWHHGXULQJWKH  
ƬQDQFLDO\HDU
ii) Remuneration paid to its members (sitting fees) ` `
b) 1XPEHURIHPSOR\HHVKDYLQJUHFHLYHGDYDULDEOHUHPXQHUDWLRQDZDUG  1$
GXULQJWKHƬQDQFLDO\HDU
c) 1XPEHUDQGWRWDODPRXQWRIVLJQRQDZDUGVPDGHGXULQJWKHƬQDQFLDO\HDU 1LO 1$
d) 'HWDLOVRIJXDUDQWHHGERQXVLIDQ\SDLGDVMRLQLQJVLJQRQERQXV 1LO 1$
e) 'HWDLOVRIVHYHUDQFHSD\LQDGGLWLRQWRDFFUXHGEHQHƬWVLIDQ\ 1LO 1$
f) 7RWDODPRXQWRIRXWVWDQGLQJGHIHUUHGUHPXQHUDWLRQVSOLWLQWRFDVKVKDUHV `&URUH 1$
DQGVKDUHOLQNHGLQVWUXPHQWVDQGRWKHUIRUPV
g) 7RWDODPRXQWRIGHIHUUHGUHPXQHUDWLRQSDLGRXWLQWKHƬQDQFLDO\HDU `&URUH 1$
h) %UHDNGRZQRIDPRXQWRIUHPXQHUDWLRQDZDUGVIRUWKHƬQDQFLDO\HDUWR )L[HG`&URUH )L[HG`&URUH
VKRZƬ[HGDQGYDULDEOHGHIHUUHGDQGQRQGHIHUUHG 9DULDEOH` 9DULDEOH1LO
&URUH1RQGHIHUUHG 'HIHUUHG1LO
`&URUH 1RQ'HIHUUHG1LO
'HIHUUHG`
&URUH
i) 7RWDODPRXQWRIRXWVWDQGLQJGHIHUUHGUHPXQHUDWLRQDQGUHWDLQHG 1LO 1$
UHPXQHUDWLRQH[SRVHGWRH[SRVWH[SOLFLWDQGRULPSOLFLWDGMXVWPHQWV
M 7RWDODPRXQWRIUHGXFWLRQVGXULQJWKHƬQDQFLDO\HDUGXHWRH[SRVWH[SOLFLW 1LO 1$
DGMXVWPHQWV
k) 7RWDODPRXQWRIUHGXFWLRQVGXULQJWKHƬQDQFLDO\HDUGXHWRH[SRVWLPSOLFLW 1LO 1$
DGMXVWPHQWV

115
 Aapka Bhala, Sabki Bhalai.

Notes to Acccou
unts
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

SXWLQSODFHUHTXLVLWHV\VWHPVDQGSURFHVVHVWR
18.20. Disclosure relating to Securitisation
HQDEOHSHULRGLFDOFRPSXWDWLRQDQGUHSRUWLQJRI
There are no securitisation transactions undertaken
WKH/LTXLGLW\&RYHUDJH5DWLR/&57KH5LVN
E\WKH%DQNGXULQJWKH\HDUHQGHG0DUFK
GHSDUWPHQWFRPSXWHVWKH/&5DQGUHSRUWVWKH
DQG0DUFK
VDPHWRWKH$VVHW/LDELOLW\0DQDJHPHQW
&RPPLWWHH$/&2HYHU\PRQWKIRUUHYLHZ
18.21. Credit default swaps
 7KH%DQNKDVQRWWUDQVDFWHGLQFUHGLWGHIDXOWVZDSV
  7
 KH%DQNIROORZVWKHFULWHULDODLGGRZQE\5%,
GXULQJWKH\HDUHQGHG0DUFKDQG0DUFK
IRUPRQWKHQGFDOFXODWLRQRI+LJK4XDOLW\/LTXLG

$VVHWV+4/$JURVVRXWƮRZVDQGLQƮRZVZLWKLQ
WKHQH[WGD\SHULRG+4/$SUHGRPLQDQWO\
18.22 Intra Group Exposures
FRPSULVHV*RYHUQPHQWVHFXULWLHVLQH[FHVVRI
 7KH%DQNGLGQRWKDYHDQ\LQWUDJURXSH[SRVXUHDVDW
PLQLPXP6/5UHTXLUHPHQWYL]7UHDVXU\%LOOV
0DUFKDQG0DUFK
&HQWUDODQG6WDWH*RYHUQPHQWVHFXULWLHVDQG
H[FHVVRIPLQLPXP&DVK5HVHUYH5DWLR&55
18.23 Transfer to Depositor Education and
Awareness FXQG'($)
  7
 KH%RDUGRI'LUHFWRUVKDVWKHRYHUDOO
During the current and previous year, the Bank was
UHVSRQVLELOLW\IRUPDQDJHPHQWRIOLTXLGLW\ULVN
QRWUHTXLUHGWRWUDQVIHUDQ\DPRXQWWR'HSRVLWRU
7KH%RDUGDWRYHUDOOOHYHOGHFLGHVWKHVWUDWHJ\
(GXFDWLRQDQG$ZDUHQHVV)XQG
SROLFLHVDQGSURFHGXUHVRIWKHEDQNWRPDQDJH
OLTXLGLW\ULVNLQDFFRUGDQFHZLWKWKHOLTXLGLW\ULVN
18.24 Unhedged Foreign Currency Exposure
WROHUDQFHOLPLWV7KH%RDUGKDVFRQVWLWXWHG5LVN
The borrower of the Bank does not have any
0DQDJHPHQW&RPPLWWHHZKLFKUHSRUWVWRWKH
8QKHGJHG)RUHLJQ&XUUHQF\([SRVXUHDVDW0DUFK
Board, and consisting of Managing Director and
DQG0DUFK
FHUWDLQRWKHU%RDUGPHPEHUV7KH&RPPLWWHHLV
UHVSRQVLEOHIRUHYDOXDWLQJWKHRYHUDOOULVNVIDFHG
 7KHDERYHLQIRUPDWLRQLVDVFHUWLƬHGE\WKH
E\WKHEDQNLQFOXGLQJOLTXLGLW\ULVN
0DQDJHPHQWDQGUHOLHGXSRQE\WKHDXGLWRUV
  $
 OOVLJQLƬFDQWRXWƮRZVDQGLQƮRZVGHWHUPLQHG
18.25 Disclosure on Liquidity Coverage Ratio
LQDFFRUGDQFHZLWK5%,JXLGHOLQHVDUHLQFOXGHGLQ
 D 4XDOLWDWLYHGLVFORVXUH
WKHSUHVFULEHG/&5FRPSXWDWLRQWHPSODWH
  7
 KH%DQNKDVDGRSWHGWKH%DVHO,,,IUDPHZRUNRQ
OLTXLGLW\VWDQGDUGVDVSUHVFULEHGE\5%,DQGKDV

116
 E4XDQWLWDWLYH'LVFORVXUHDVRQVW0DUFK   
(` in crore)
Average for the quarter Average for the quarter Average for the quarter Average for the quarter
ended 30 June 2016 ended 30 September 2016 HQGHG'HFHPEHU ended 31 March 2017
Total Total Total Total Total Total Total Total
Particulars
8QZHLJKWHG Weighted 8QZHLJKWHG Weighted 8QZHLJKWHG Weighted 8QZHLJKWHG Weighted
Value Value Value Value Value Value Value Value
DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH
+LJK4XDOLW\/LTXLG$VVHWV
 7RWDO+LJK4XDOLW\/LTXLG$VVHWV+4/$    
&DVK2XWƮRZV
 5HWDLO'HSRVLWVDQGGHSRVLWVIURPVPDOO        
EXVLQHVVFXVWRPHUVRIZKLFK
D6WDEOHGHSRVLWV        
Notes to Acccou

E/HVVVWDEOHGHSRVLWV        

 8QVHFXUHGZKROHVDOHIXQGLQJRIZKLFK        
D2SHUDWLRQDOGHSRVLWVDOOFRXQWHUSDUWLHV        
unts

E1RQRSHUDWLRQDOGHSRVLWVDOO        
counterparties)
c) Unsecured debt        
 6HFXUHGZKROHVDOHIXQGLQJ        
 $GGLWLRQDOUHTXLUHPHQWVRIZKLFK        
D2XWƮRZVUHODWHGWRGHULYDWLYHH[SRVXUHV        
DQGRWKHUFROODWHUDOUHTXLUHPHQWV
E2XWƮRZVUHODWHGWRORVVRIIXQGLQJRQ        
debt products
F&UHGLWDQGOLTXLGLW\IDFLOLWLHV        
 2WKHUFRQWUDFWXDOIXQGLQJREOLJDWLRQV        
 2WKHUFRQWLQJHQWIXQGLQJREOLJDWLRQV        
 7RWDO&DVKRXWƮRZV 9,722.09 4,381.03 8,884.35 3,029.13 13,248.13 3,666.75 15,013.35 3,420.78
&DVK,QƮRZV
 6HFXUHGOHQGLQJHJ5HYHUVHUHSRV
 ,QƮRZVIURPIXOO\SHUIRUPLQJH[SRVXUHV        
 2WKHUFDVKLQƮRZV        
 7RWDO&DVK,QƮRZV 4,254.09 3,482.68 3,073.21 2,221.32 3,460.61 2,427.42 4,418.60 3,285.94
 Total HQLA 3,063.52 1,665.82 1,863.59 1,520.38
 7RWDO1HW&DVKRXWƮRZ 1095.26 807.81 1239.34 855.22
 /LTXLGLW\&RYHUDJH5DWLR    
1RWH7KHDERYHGDWDUHSUHVHQWVVLPSOHDYHUDJHRIPRQWKO\REVHUYDWLRQVIRUWKHUHVSHFWLYHTXDUWHUVWLOO'HFHPEHU7KHDYHUDJHIRUWKHTXDUWHUHQGHGVW0DUFKLVFRPSXWHGRQ
GD\ZLVHRXWVWDQGLQJEDODQFH
Financcia

IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK
al sttatem
mentss

117
121
118
F4XDQWLWDWLYH'LVFORVXUHDVRQVW0DUFK   
(` in crore)
Average for the quarter Average for the quarter Average for the quarter Average for the quarter
ended 30 June 2015 ended 30 September 2015 HQGHG'HFHPEHU ended 31 March 2016
Total Total Total Total Total Total Total Total
Particulars
8QZHLJKWHG Weighted 8QZHLJKWHG Weighted 8QZHLJKWHG Weighted 8QZHLJKWHG Weighted
Aapka Bhala, Sabki Bhalai.

Value Value Value Value Value Value Value Value

DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH DYHUDJH
+LJK4XDOLW\/LTXLG$VVHWV
 7RWDO+LJK4XDOLW\/LTXLG$VVHWV+4/$     
&DVK2XWƮRZV
 5HWDLO'HSRVLWVDQGGHSRVLWVIURPVPDOO        
EXVLQHVVFXVWRPHUVRIZKLFK
Notes to Acccou

D6WDEOHGHSRVLWV        

E/HVVVWDEOHGHSRVLWV        
 8QVHFXUHGZKROHVDOHIXQGLQJRIZKLFK        
unts

D2SHUDWLRQDOGHSRVLWVDOOFRXQWHUSDUWLHV        
E1RQRSHUDWLRQDOGHSRVLWVDOOFRXQWHUSDUWLHV        
c) Unsecured debt        
 6HFXUHGZKROHVDOHIXQGLQJ        
 $GGLWLRQDOUHTXLUHPHQWVRIZKLFK        
D2XWƮRZVUHODWHGWRGHULYDWLYHH[SRVXUHV        
DQGRWKHUFROODWHUDOUHTXLUHPHQWV
E2XWƮRZVUHODWHGWRORVVRIIXQGLQJRQGHEW        
products
F&UHGLWDQGOLTXLGLW\IDFLOLWLHV        
 2WKHUFRQWUDFWXDOIXQGLQJREOLJDWLRQV        
 2WKHUFRQWLQJHQWIXQGLQJREOLJDWLRQV        
 7RWDO&DVKRXWƮRZV - - 941.58 651.47 1,845.05 1,272.57 3,575.45 2,081.04
&DVK,QƮRZV
 6HFXUHGOHQGLQJHJ5HYHUVHUHSRV        
 ,QƮRZVIURPIXOO\SHUIRUPLQJH[SRVXUHV        
 2WKHUFDVKLQƮRZV        
 7RWDO&DVK,QƮRZV - - 2,618.48 2,335.53 1,642.36 1,293.82 2,618.57 2,165.65
 Total HQLA   380.17 690.37 862.64
 7RWDO1HW&DVKRXWƮRZ   162.87 318.14 520.26
 /LTXLGLW\&RYHUDJH5DWLR     

1RWH7KHDERYHGDWDUHSUHVHQWVVLPSOHDYHUDJHRIPRQWKO\REVHUYDWLRQVIRUWKHUHVSHFWLYHTXDUWHUV
IRUPLQJSDUWRIWKHƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK
 18.26 Maturity pattern of certain items of Assets and Liabilities
(` in crore)
Over 3
Over 6 Over 1 Over 3
2 to 7 8 to 14 15 to 28 29 days to months Over 5
Particulars 'D\ months & Year & up Years & up Total
days days days 3 months & up to 6 years
up to 1 year to 3 years to 5 years
months Notes
Liabilities
Borrowings           
          
Deposits           
          
)RUHLJQ&XUUHQF\/LDELOLWLHV           
          
71.02 744.53 472.13 170.69 3,087.80 1,446.43 5,893.33 11,918.88 339.99 112.80 24,257.60
Total
          
Assets
Advances           
          
Investment           
          
)RUHLJQ&XUUHQF\$VVHWV           
          
50.51 350.02 352.02 666.76 2,976.63 3,931.40 5,125.62 4,319.64 3.97 4,579.00 22,355.57
Total
          
&ODVVLƬFDWLRQRIDVVHWVDQGOLDELOLWLHVXQGHUWKHGLƪHUHQWPDWXULW\EXFNHWVLVEDVHGRQWKHVDPHHVWLPDWHVDQGDVVXPSWLRQVDVXVHGE\WKH%DQNIRUFRPSLOLQJWKH
UHWXUQVXEPLWWHGWRWKH5%,ZKLFKKDVEHHQUHOLHGXSRQE\WKHDXGLWRUV         
3UHYLRXV\HDUƬJXUHVDUHVKRZQLQqq
IRUPLQJSDUWRIWKH%DODQFH6KHHWDVDW0DUFK
Financcia
al sttatem
mentss

119
121
 Aapka Bhala, Sabki Bhalai.

Notes
IRUPLQJSDUWRIWKH%DODQFH6KHHWDVDW0DUFK

18.27 Sector-wise advances

(` in crore)
As at 31 March 2017 As at 31 March 2016
Percentage of Percentage of
Sl. Outstanding Outstanding
Sector* Gross Gross NPAs to Gross Gross NPAs to
No. Total Total
NPAs Total Advances NPAs Total Advances
Advances Advances
in that sector in that sector
A Priority Sector
 $JULFXOWXUHDQGDOOLHGDFWLYLWLHV      
 Advances to industries sector      
HOLJLEOHDVSULRULW\VHFWRUOHQGLQJ
 6HUYLFHV      
 3HUVRQDOORDQV      
6XE7RWDO$ 16,456.64 85.89  12,268.81 18.56 
B Non Priority Sector
 $JULFXOWXUHDQGDOOLHGDFWLYLWLHV      
 Industry sector      
 6HUYLFHV      
 3HUVRQDOORDQV      
6XE7RWDO% 407.53 0.37  177.27 0.21 
7RWDO$% 16,864.17 86.26  12,446.08 18.77 
 7KHFODVVLƬFDWLRQRIDGYDQFHVLQWRVHFWRULVEDVHGRQVHFWRUZLVHLQGXVWU\EDQNFUHGLWUHWXUQVXEPLWWHGWR5%,

18.28'HWDLOVRI,QWHU%DQN3DUWLFLSDWLRQ&HUWLƬFDWH,%3&WUDQVDFWLRQV

 'XULQJWKH\HDUWKH%DQNKDVVROGLWVDGYDQFHVWKURXJK,%3&V7KHGHWDLOVDUHDVIROORZV
(` in crore)
Sl Year ended Year ended
Particulars
No. 31 March 2017 31 March 2016
i) $JJUHJDWHYDOXHRI,%3&VHQWHUHG  
ii) Aggregate consideration received  
iii) Aggregate gain recorded  
iv) ,%3&VRXWVWDQGLQJ>LQFOXGLQJSULQFLSDODPRXQWRI`FURUH3UHYLRXV  
<HDU`FURUHFROOHFWHGDJDLQVWWKHSRROVROGDQGQRW\HWGXHIRU
SD\PHQWDQGLQFOXGHGXQGHURWKHUOLDELOLWLHV@

120
 Financcia
al sttatem
mentss

121
Notes
IRUPLQJSDUWRIWKH%DODQFHVKHHWDVDW0DUFK

18.29 Corporate Social Responsibility

 D *URVVDPRXQWWREHVSHQWE\WKH&RPSDQ\GXULQJWKH\HDULV`FURUH3UHYLRXV<HDU`FURUH

 E 7KHIROORZLQJWDEOHVHWVIRUWKIRUWKHSHULRGVLQGLFDWHGWKHDPRXQWVSHQWE\WKH%DQNRQ&65UHODWHGDFWLYLWLHV
(` in crore)
Year ended 31 March 2017 Year ended 31 March 2016
Sl
Particulars Yet to be Yet to be
No. In Cash Total In Cash Total
paid in Cash paid in Cash
i) &RQVWUXFWLRQDFTXLVLWLRQRIDQ\DVVHWV      
ii) On purpose other than (i) above      

18.307KHƬQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK7KLUG6FKHGXOH)RUP$ )RUP%RIWKH%DQNLQJ

5HJXODWLRQ$FW7KHDPHQGPHQWWRVFKHGXOHRIWKH&RPSDQLHV$FWLVVXHGE\0LQLVWU\RI&RUSRUDWH
$ƪDLUVYLGHQRWLƬFDWLRQVGDWHG0DUFKZKLFKUHTXLUHVHYHU\&RPSDQ\WRGLVFORVHWKHGHWDLORI6SHFLƬHG
%DQN1RWHV6%1LVQRWDSSOLFDEOHIRUWKH%DQN$FFRUGLQJO\VXFKGHWDLOVKDYHQRWEHHQIXUQLVKHG

18.31 3UHYLRXV\HDUƬJXUHVKDYHEHHQUHJURXSHGUHFODVVLƬHGZKHUHYHUQHFHVVDU\WRFRQIRUPWRFXUUHQW\HDUoV
FODVVLƬFDWLRQ
As per our report of even date

For S.R. Batliboi & Associates LLP For Bandhan Bank Limited
&KDUWHUHG$FFRXQWDQWV
)LUP5HJLVWUDWLRQ1XPEHU:(

Per Amit Kabra Dr. A. K. Lahiri Chandra Shekhar Ghosh C.M. Dixit
Partner &KDLUPDQ 0DQDJLQJ'LUHFWRU &(2 Director
0HPEHUVKLS1XPEHU

3ODFH*XUJDRQ 3ODFH.RONDWD Indranil Banerjee Sunil Samdani

'DWH$SULO 'DWH$SULO &RPSDQ\6HFUHWDU\ &KLHI)LQDQFLDO2ƯFHU

121
Notes
Notes
Notes
www.bandhanbank.com

(info@aicl.in)

Aapka Bhala, Sabki Bhalai.

concept, content and design at

Head Office : DN 32, Sector V, Salt Lake City, Kolkata 700091, West Bengal, India
T: +91-33-6609 0909 | F: 033 6609 0502

bandhanbank.in bandhanbank_in Bandhan Bank