Dakshin Bihar Gramin Bank Risk Management Policy 2024-25 PDF

## DAKSHIN BIHAR GRAMIN BANK **RISK MANAGEMENT POLICY, 2024-25** **Committed to Rural Development** ## PART A ## Risk Management Policy of Dakshin Bihar Gramin Bank for FY 2024-25 ### 2.4.1 Introduction Banks are in the business of taking risk and getting compensated for it. Many of the risks...

## DAKSHIN BIHAR GRAMIN BANK **RISK MANAGEMENT POLICY, 2024-25** **Committed to Rural Development** ## PART A ## Risk Management Policy of Dakshin Bihar Gramin Bank for FY 2024-25 ### 2.4.1 Introduction Banks are in the business of taking risk and getting compensated for it. Many of the risks a bank assumes such as default risk are inherent to the business of banking and an essential part of the intermediation function that banks perform. The goal of risk management is to enhance shareholder value while addressing the interests of bank's other stakeholders including customers, management, employees, board, supervisors, creditors and counterparties. Risk management is the process by which a bank identifies, measures, monitors and manage its risk exposures to ensure that - Identification of Risk - Measurement of Risk - Risk Appetite of the Bank Based On the measurement of risk - Monitoring the Risk - Strategy adopted for Mitigation of Risk The guiding principles for evolving robust and dynamic risk management practices broadly include: - Board of Directors and top management's responsibility for Policy Formation and approval - Risk evaluation/measurement - Framework for managing & mitigating risk ### 2.4.2 Objective of Risk Management Policy: The bank shall not view the risk management function as a process of eliminating all kinds of identified risks to the greatest extent possible but a more holistic approach shall be taken whereby risk retention is considered appropriate after giving due consideration to factors such as specific risk characteristics of obligor, inter relationship between risk variables and corresponding return and achievement of various business objectives within the controlled risk environment. The risk management shall continue to be viewed as a journey, not a destination. The Bank recognizes the need to understand and manage the risk inherent in various underlying activities. All analytical, decision-making and implementation processes should be oriented towards prudently managing the risk before focusing on the potential reward. #### Focus of Risk Management Policy: The policy lays down the guidelines within which meaningful work can take place, which in turn, provides a foundation upon which significant risk management accomplishments can be achieved. The bank believes in the policy of Integrated/Enterprise risk management. The risk management policy shall aim at, mitigating the risk, increasing the profitability and improving the return on capital. Bank believes that risk management is one of the foremost responsibilities of top/ senior management. #### Integrated Risk Management Process: A Sound Risk Management Process has the following basic components:- - A Comprehensive Risk Management approach - Issuance of Guidelines and establishment of other parameters to govern Risk taking. - A strong Management Information System & KRI Approach for measuring, monitoring, and controlling risk. - Fixation of Appropriate Limits for controlling Exposures, pre-determination of tolerance levels for placing before Risk Management Committee of the Bank & Board of Directors for approval, along with adequate stress tests. - Identification of Human Resource within or outside the organization and training to continuously upgrade its skill. The Risk Management process shall cover the activities covering with identification of sources of risks, assessment and measurement of risks, signalling the ways and means to manage the risks and also activities connected with building up of supervision and control mechanism. ## PART B ## Risk Appetite Framework of the Bank for FY 2023-24 ### 4.1. Risk Appetite Framework (RAF): The entire framework of embedding risk appetite across the Bank includes: - Maintain robust risk profile and capital adequacy - Communicating to the staff at all levels, a clear and relevant risk appetite culture so that they can understand and apply the same in their daily roles. - Bank endeavours to adhere the Risk Appetite Framework (RAF) as a culture of the organization. - Monitoring the alignment of risk profile against risk appetite and establishing an escalation matrix, as part of risk governance framework. - Integrate Risk appetite as an integral element in Bank's business planning processes and Capital Raising Plan, and to promote the appropriate alignment of risk, capital and performance targets, while at the same time considering risk capacity and appetite constraints. ### 4.2. Business Segments: The focus area of business of the Bank is defined in terms of expected Risk adjusted return keeping in view risk covered by collateral securities and Government's thrust areas. As such Bank endeavours to diversify the business considering the following three business segments: - **Favourable Business segments:** depicting business segments having low risk or Govt. thrust area in the larger interest of rural economy, Bank has High appetite for such segments. Business segments covered under this category are: - Housing Loan to individuals, Including Rural Housing Loan under Prdhan Mantri Awas Yojna, Education (priority sector) and Vehicle loans with special emphasis on financing E Vehicle by creating right kind of customer incentives for early adoption. - Agriculture loans /Self Help Group Loans, Priority sector advances / Govt. Sponsored schemes - Non-priority sector MSME accounts with GST registration and having at least 75% collateral coverage. - Other Loans having Fund Based and Non-Fund Based exposure up to Rs.5 crore with collateral coverage of at-least 100%. - All exposure to Central Govt, State Govt. and Exposure guaranteed by Central Govt. as well as State Govt (as these accounts attract 0% Risk Weight as per Basel I Norms, no capital is consumed; however reasonable economic profit is expected). - Increase finance in green energy sector - Increasing avenues for Non Interest Income - **Unfavorable Business segments:** depicting business segments having high risks or no Govt. thrust area, Bank has Moderate appetite for such segments. Business segments covered under this category are: - All Non-priority sector loan exposure exceeding Rs.5 crore where security is less than 100% of the loan amount and/ or credit rating of the borrower is low. - Advances to Non-Government agencies, including cooperatives / trusts. - Existing business areas requiring major interventions. - Other business areas requiring major interventions. - **Other Business Segments:** depicting business segments neither falling in Favourable nor in Unfavorable categories, Bank has Low appetite for such segments. Business segments covered under this category are: - Any type of exposures for which, the Risk/ Return is not considered satisfactory. - Any type of exposures requiring extraordinary approvals. ### 4.3. Collateral Security: The collateral securities for the purpose mentioned above are as under: 1. Financial and Cash collateral (i.e. FD, NSC, KVP, SV of Insurance policies, Gold, sovereign bonds) 2. All IPs mortgaged with bank where bank has first charge and SARFAESI is applicable except plant and machinery. 3. Advances covered Govt. guarantee scheme. ### 4.4. Risk Appetite Statement (RAS): Bank has appetite for low to moderate risk businesses, thereby grow business by focusing on retail borrowers, good rated borrowers or Good Scoring Borrowers as per CIBIL, Highmark data, borrowers backed by good collateral apart from focusing on Govt. thrust areas in the larger interest of the economy. However, with adequate risk mitigation. - Bank is willing to rationalize its business having higher slippage and inadequate controls. - Bank shall be having greater focus on recovery of non-performing assets through Cash recovery, up-gradation or sale, to bring down the Net NPA ratio below 40% (gradually decreasing 15% in each year bringing the NPA Level below 5% industry level) - Bank attaches highest importance in compliance to applicable banking regulations at all times and has endeavour for maintaining all regulatory requirements. - Bank does not have appetite to undertake activities that could endanger reputation of the bank. - To reduce the concentration risk, Bank shall follow meticulously Counterparty Exposure Framework as defined under LEF Framework by RBI. Industry wise concentration shall also be observed by Bank. Diversification of Business to other sector in addition to Agri Sector shall be focused for proper Risk Mitigation and avoiding concentration risk. ### 4. Risk Appetite: Bank has defined its risk appetite as combination of Risk limits and Risk Threshold level. Bank endeavours to maintain its risk level within the defined risk limits. Threshold level defines the level of risk that the bank can sustain before breaching its risk appetite. Threshold level serves as a cushion between the risk appetite and risk limit. For all risk parameters where regulatory requirement has been prescribed, regulatory limit is the risk capacity of the Bank and risk appetite has been defined with certain internal buffers i.e. a breach in risk appetite will leave a cushion before breach in regulatory limit. This shall help the Bank in attaching highest importance to regulatory compliance by ensuring that there is adequate response time available for remedial action before any regulatory breaches could occur. Risk Limit is intentionally kept above 10% from its regulatory Limit. Bank has defined its Risk Appetite in terms of different parameters as follows: - **I. Capital:** DBGB wants to protect itself from regulatory breaches in capital at all times. Minimum Regulatory Req. for CRAR is 9.00% as on 31.03.2023. - As DBGB has already breached the level of Minimum Capital Requirement, the Bank shall do every endeavour to protect capital and refrain from taking exposure to sectors which requires high Risk Weighted Capital. To enhance the capital base Bank shall make endeavour to issue Perpetual Bond with a Call Option to enhance the Capital base. Further, to restore the capital Bank shall work on the Viability Plan as approved by the Board. - **II. Liquidity:** Bank shall ensure that it maintains access to stable funding and liquidity to carry out its business and will also maintain an appropriate level and quality of liquid asset buffers so as to withstand market and idiosyncratic liquidity related stresses. - DBGB has no appetite for failing to deliver on its payment obligations and holds a sufficient buffer at group levels to survive liquidity crisis. As such, Risk Appetite level shall be to maintain Liquidity Coverage Ratio (LCR) at minimum of 5% above the prescribed regulatory minimum. - Accordingly, risk limits and risk appetite level shall be as below: | Particular | Regulatory Limit | Risk Limit | Risk Appetite | |---|---|---|---| | LCR (Liquidity Coverage Ratio) | 100% | 110% | 105% | | All SLR Securities shall be counted as HQLA (High Quality Liquid Asset) as per regulatory guidelines of RBI. | | | | | Net Stable Funding Ratio (NSFR) being a regulatory requirement, its risk appetite has been defined keeping an internal buffer of 5% over and above regulatory requirement. | | | | - Accordingly, risk limits and risk appetite level shall be as below: | Particular | Regulatory Limit | Risk Limit | Risk Appetite | |---|---|---|---| | NSFR | 100% | 110% | 105% | - **III. Credit Risk:** Credit risk is the largest risk that the Bank faces. It is acknowledged that large credit losses have been experienced by the Bank in recent years, level of NPA is relatively on the higher side. - During the FY 2024-25, Bank endeavours to grow its credit portfolio, keeping in view the following: 1. Credit RWA density (FB) of loan portfolio to remain less than 80%. Accordingly, risk limits and threshold level shall be as below: | Credit RWA density (FB) | Risk Limit | Risk Appetite | |---|---|---| | | 80% | 85% | 2. To keep Gross NPA level below 40% during 2024-25 and it will gradually decrease by 15% in each subsequent year, Net NPA Level below 30%, it will gradually decrease by 20% in each subsequent year. Accordingly, risk limits and risk appetite shall be as below: | Category-wise Credit RWA Density | Risk Limit | Risk Appetite | |---|---|---| | Gross NPA | 40.00% | 45.00% | | Net NPA | 30.00% | 25.00% | 3. Provision Coverage ratio shall be above 40% for 2024-25. And gradually Bank shall increase PCR by 20% YOY. Risk limits and risk appetite level shall be as below: | Provision Coverage Ratio | Risk Limit | Risk Appetite | |---|---|---| | | 40.00% | 38.00% | - **VI. Credit Concentration:** - The appetite of credit concentration has been defined in terms of exposure ceiling as given below: - Individual borrower: exposure to - single borrower shall not exceed 20% of eligible capital base, - Group Borrower: exposure to a group (including NBFC group) shall not exceed 25% of the eligible capital base. - Exemption (s): - Intra Day-Interbank Exposure: The Intra Day - Interbank exposures - The Central Govt/State Govt Exposure - The Central Govt/State Govt Guaranteed Account which are having zero risk weight as per Basel -1 are exempted from Counter Party Exposure Norms. - **VII. Liability Concentration:** - A liability concentration (or funding concentration) exists when the funding structure of the institution makes it vulnerable to a single event or a single factor, such as a significant and sudden withdrawal of funds or inadequate access to new funding. The amount that represents a funding concentration is an amount that, if withdrawn by itself or at the same time as similar or correlated funding sources would require the institution to significantly change its day-to-day funding strategy. - One of the parameter for assessing Liability concentration risk is Ratio of Bulk Deposit (Rs.1 Cr & Above) to Total Deposit. The Risk Limit & Risk appetite level shall be as below: | Ratio of Bulk Deposits to Total Deposit | Risk Limit | Risk Appetite | |---|---|---| | | 20.00% | 25.00% | - **VIII. Market Risk:** - Market Risk is well defined in the Investment Policy and all Market Risk Parameter such as Modified Duration, PV Ratio shall be followed. - **IX. Operational Risk:** - The maximum appetite for operational losses (Including Fraud, Robbery, Dacoity) in a FY has been defined as 1.00% of Gross Income of previous FY. Accordingly, risk limits and risk appetite level shall be as below: | Operational Risk | Risk Limit | Risk Appetite | |---|---|---| | | 1.00% | 0.85% | - **X. Key Risk Indicator: -** - KRI Approach shall be followed by Bank as per Appendix II. Two level threshold for monitoring purpose has been proposed. A breach in Lower Threshold shall be required to put in Head Office Level Risk Management Committee (HORMC) by the Owner Department. However after breaching in Upper Threshold the same shall be placed before Board Level Risk Management Committee in its quarterly meeting by its Owner Department as a part of Agenda. ### 3.8. Integrated Risk Management Department: A separate department named Integrated Risk Management Department (IRMD) shall be created to see the overall Risk Management of the Bank and the responsibility of day to day implementation of Risk Management policy shall lie with the said department. IRMD shall be headed by Chief Risk Officer (CRO). The Risk management functions of the bank may be looked after by IRMD through various departments viz. Credit Risk Management Department for Credit Risk, ALM Cell through IRMD Department for Liquidity Risk, Market Risk, IAD for Operational Risk, Compliance Department for Compliance risk, IT Department Technology and IT/Digital related risks, etc. If required, any new department/vertical may be constituted at the bank based upon requirement, scale of the bank and prevalent risk environment. ### 3.8.1 Role of Chief Risk Officer: The detailed guidelines for appointment of CRO and his roles & responsibility are given below: - **A) Eligibility/ Preferences Criteria:** - CRO shall be in the rank of General Manager / Chief Manager. - CRO shall have minimum 5 years or sufficient experience in risk functions or CRO shall have the necessary and adequate professional qualification/ experience in the areas of risk management. - **B) Tenure:** - The appointment of the CRO shall be made with the approval of Board. - The CRO may be changed / replaced from his post before completion of the tenure only with the approval of the Board and such premature changed / replaced shall be reported to IRMD (PNB, HO, New Delhi) and the Department of Banking Supervision, Reserve Bank of India, Mumbai. - After the appointment of CRO by Board, the information shall be given to: - Department of Banking Supervision, Reserve Bank of India, Mumbai, in case of premature transfer/removal of CRO. - Department of IRMD (PNB, HO, New Delhi) - **C) Roles & Responsibility of CRO:** - The overall responsibility of managing risk in the bank lies with Board of Directors. - The responsibility of day to day implementation of Risk Management policy shall lie with IRMD, headed by CRO and his roles and responsibilities are as under:- - To review and place / forward recommendations of Integrated Risk Management Department to different functional committees like Credit Risk Management Committee (CRMC), Asset Liability Management Committee (ALCO), Operational Risk Management Committee (ORMC), HO Risk Management Committee (HORMC) or sub-committee of Board like Risk Management Committee (RMC) of Board etc. - To monitor and review risk management and mitigation policies and methodologies for assessing different types of risks faced by the Bank. - To monitor development of methodologies for adoption of Advanced Approaches for Credit / Market/ Operational Risk. - To assess materiality and significance of other risks like Credit Concentration risk, Compliance risk, Reputational Risk, Liquidity Risk, Strategic Risk etc. and inform top management about methodologies, system or process to contain the risks. - To be part of capital planning process for the Bank which inter-alia include: - Estimation/projection of Risk Weighted Assets & CRAR - Estimation of capital requirement based on regulatory as well as targeted Capital ratios. - To oversee Asset Liability Management function of the Bank encompassing overall evaluation of Liquidity profile of Bank, monitoring of Liquidity and inform contingency funding requirement to HO: Treasury for preparedness. - To be part of computation of Base Rate and Marginal Cost of Funds based Lending Rate (MCLR) of the Bank and for fixation of Risk premium as per risk profile of the borrower. - To endeavour to identify industry wide best practices in risk management and strive to implement the same across the organization. - **D) Reporting of CRO:** - CRO shall report to Board, through the Chairman. - CRO shall be the convenor of the RMC meeting. All notes to RMC shall be marked by Chairman. - The RMC shall be conducted at least on quarterly basis and headed by the Chairman of RMC. RMC shall meet the CRO for one-to-one discussion, without the presence of Chairman of Bank. ### 3.9. Policy Review The Risk Management Department shall put the "Risk Management and Mitigation policy" for review to the Board annually. Relative departments shall incorporate Risk Mitigating factors and systems in their individual policies like Credit policy, NPA management policy, Investment policy, IT policy, Fraud risk management policy etc. and put their policies for review to the Board annually. ## APPENDIX-1 ## Maturity Profile - Liquidity ## Maturity GAP A. Outflows 1. Reserves Surplus Capital, **Over 5 years band.** 2. Demand Deposits (Current Savings Deposits) and Savings Bank and Current Deposits may be classified into volatile and core portions. Savings Bank (10%) and Current (15%) Deposits are generally withdrawable on demand. This portion may be treated as volatile. While volatile portion can be placed in the first time band i.e., 1-14 days, the core portion may be placed in over 1-3 years time band. The above classification of Savings Bank and Current Deposits is only a benchmark. Banks which are better equipped to estimate the behavioural pattern on renewals, premature closures, etc. on the basis of past data/empirical studies could classify them in the appropriate time bands, i.e. behavioural maturity instead of contractual maturity, subject to the approval of the Board/ALCO. 3. Term Deposits Respective residual (remaining period to maturity) time bands. Banks which are better equipped to estimate the behavioural pattern on renewals, premature closures, etc. on the basis of past data/empirical studies could classify the retail deposits in the appropriate time bands on the basis of behavioural maturity rather than residual maturity. However, the wholesale deposits (deposits over Rs 15 lakh and inter-bank deposits) should be shown under respective residual time bands. 4. Certificates of Deposit, Borrowings and Bonds (including Sub-ordinated Debt) Respective residual time bands. 5. Other Liabilities and Provisions - i) Bills Payable **1-14 days time band.** - ii) Branch Adjustments The net credit balance may be shown in **1-14 days time band.** - iii) Provisions Respective time bands depending on the purpose. - iv) Other than for loan loss and depreciation in investments. Respective time bands. - v) Liabilities Other Respective time bands. Items not representing cash payables (i.e. guarantee fee received in advance, etc.) may be placed in **over 5 years time bands.** B. Inflows 1. Cash **1-14 days time bands.** 2. Balances with RBI/Public Sector Banks for CRR/SLR purpose While the excess balance over the required CRR/SLR may be shown under **1-14 days time bands**, the Statutory Balances may be distributed amongst various time bands corresponding to the maturity profile of DTL with a time-lag of **28 days**. 3. Balances with other Banks - (i) Current Account (i) Non-withdrawable portion on account of stipulations of minimum balances may be shown under **over 1-3 years time band** and the remaining balances may be shown under **1-14 days time band.** - (ii) Money at Call and Short Notice, Term Deposits and other placements (ii) **Respective residual maturity time bands.** 4. Investments (Net of provisions) - (i) securities Approved (i) **Respective residual maturity time bands** excluding the amount required to be reinvested to maintain SLR corresponding to the DTL profile in various time bands. - (ii) PSU bonds, CDs and CPs, Units of UTI (close ended), etc. (ii) **Respective residual time bands**. Investments classified as NPAs should be shown under **over 3-5 years time bands** (sub-standard) or **over 5 years time band** (doubtful). - (iii) Equity of All India Fls, Units of UTI (open ended) (iii) **Over 5 years time bands.** - (iv) Securities in the Trading Book< (iv) **1-14, 15-28 and 29-90 time bands** corresponding to defeasance periods. 5. Advances (Performing) - (i) Bills Purchased and Discounted (including bills under DUPN) (i) **Respective residual maturity time bands.** - (ii) Cash Credit / Overdraft (including TOD) and Demand Loan component of Working Capital. (ii) Banks should undertake a study of behavioural and seasonal pattern of availments based on outstanding and the core and volatile portion should be identified. While the volatile portion could be shown in the near-term maturity time bands, the core portion may be shown under **over 1-3 year time band.** - (iii) Term Loans (iii) Interim cash flows (instalments) should be shown under respective maturity time bands. - (iv) NPAs (Net of ECGC/DICGC) (i) Sub-standard (i) **Over 3-5 years time band.** - (ii) Doubtful and Loss (ii) **Over 5 years time band.** 6. Fixed Assets - (i) Other Assets (i) **Over 5 years time bands.** 7. Other Assets - The net debit balance may be shown in **1-14 days time band**. Intangible assets and assets not representing cash receivables may be shown in **over 5 years time band.** 8. Adjustments - (i) Contingent Liabilities / Lines of Credit committed / available and other Inflows / Outflows - (i) Unavailed portion (i) Banks should undertake a study of the behavioural and seasonal pattern of potential availments in the accounts and the amounts so arrived at may be shown under relevant residual maturity time bands within **12 months**. - (ii) 1-14 days time band. - (iii) Letters of Credit/ Guarantees (outflow) Based on past history, these should be distributed across time bands. - (iv) devolvement / Bills Repos Rediscounted (DUPN) (outflow / inflow) Respective residual maturity time bands. - (v) Interest payable / receivable (outflow / inflow) - Accrued interest which are appearing in the books on the reporting day Respective time bands. ## APPENDIX -II ## Key Risk Indicator ### Risk Management and Mitigation Policy, FY 2023-24 | Sr. No. | Risk Indicator | Unit | Lower Threshold | Upper Threshold | Monitoring Division | |---|---|---|---|---|---| | 1 | %age of cases not moved for confirmation of action for exceeding expenditure powers (Branches + RO). | % | 10 | 20 | GAD | | 2 | % of cases where action was not confirmed by the competent authority for exceeding expenditure power | % | 5 | 10 | GAD | | 3 | No. of Cases detected in non borrowal fraud cases in any FY | NO | 4 | 6 | INS | | 4 | %age of amount involved in non borrowal fraud during any Year | % | 20% | 30% | INS | | 5 | Number of Dacoity/Robbery/Theft cases detected in any Year | NO | 4 | 6 | INS | | 6 | %age amount involved in Dacoity/Robbery/Theft cases detected | % | 20% | 30% | INS | | 7 | No. of instances on which outstanding complaints were not placed to the competent authority at the end of the month | NO | 0 | 5 | INS | | 8 | %age of amount outstanding in Suspense account for morethan 30 days | % | 4 | 6 | INS | | 9 | %age of amount outstanding in Sundry account for more than 3 Months (in crores) | % | 4 | 6 | INS | | 10 | %age of entries outstanding in Sundry account for more than 3 Months in Branches (in crores) | % | 10 | 20 | INS | | 11 | %age of entries outstanding in Sundry account for more than 3 Months in Branches. | % | 10 | 20 | INS | | 12 | %age of High value (Rs 1 lac & above) clearing difference (receivable) entries outstanding | % | 5 | 10 | IT | | 13 | %age of amount outstanding in High value (Rs 1 lac & above) clearing difference (receivable) entries | % | 5 | 10 | IT | | 14 | Pendency in Uploading / verification of signatures and cleansing of data on daily basis per Branch | No | 5 | 10 | INS | | 15 | Non Compliance with bank's guidelines while taking the office premises on lease or on surrender / vacation of the premises | No | 2 | 5 | GAD | | 16 | Non-Observance of guidelines on AMC on assets including computer systems, insurance of assets and timely refilling of fire fighting equipments etc | No | 2 | 5 | GAD/ITD | ### Department Wise KRI | # | Departme nt | KRI Name | Key Risk Definition (Formula) | Unit | Lower Threshold | Upper Threshold | |---|---|---|---|---|---|---| | 1 | IT | Monitoring of logsof firewalls, IPS & other security appliances | Percentage of Firewalls, IPS and other security equipments down time to total working hours | % | 0.50% | 1% | | 2 | IT | Deploying Anti-Virus solutions across the bank | Percentage of PCs where AV solutions is not installed | % | 1.5% | 5% | | 3 | IT | Monitoring of CBS servers | Percentage of CBS servers down time to the total working hours | % | 0.50% | 1% | | 4 | IT | No. of applications for which DR drill was not conducted during the last Quarter | No. of applications for which DR drill was not conducted during the last Quarter | Quart er | 1 | 2 | | 5 | HRD | Overdue rotational transfers | % of employee overdue for rotational transfer | % | 5 | 10 | | 6 | HRD | Average age of the Officer employees | Average age of Officer employees | Years | 50 | 55 | | 7 | HRD | Average age of the Clerical Employee | Average age of Clerical Employee | Years | 45 | 50 | | 8 | HRD | Average age of the Sub-staff Employee | Average age of Sub staff employees | Years | 45 | 50 | | 9 | HRD | Number of Labour dispute cases against the Bank | Number of Labour dispute cases against the Bank pending at the close of the quarter | No. | 1200 | 1500 | | 10 | HRD | Officers attrition rate | % of Officer employees leaving the organization p.a. by way to resignation and VRS. | % | 1.5% | 2.5% | | 11 | DAC | DAC Initiated (Officers) | %age of officer employees against whom DAC Initiated | % | 1.75% | 2.25% | | 12 | DAC | DAC Initiated (Workmen) | %age of workmen employees against whom DAC Initiated | % | 0.2% | 0.3% | | 13 | DAC | Dismissal cases (Officers) | %age of officers employees dismissed | % | 0.2% | 0.3% | | 14 | DAC | Dismissal cases (Workmen) | %age of workmen employees dismissed | % | 0.1% | 0.2% | | 15 | DAC | Attrition & Change in Experience level of Dealing staff (Dealers Attrition rate) | % of dealers leaving the organization to total no. of trained dealing staff | % | 5% | 15% | | 16 | DAC | Short selling & | | | | | | 17 | INVESTMEN T | Failed trade | No. of failed trades | no. | 2 | 5 | | 18 | INVESTMEN T | No. of High Risk Branches | Total no. of High Risk Branches | % | 25% | 50% | | 19 | IAD | Insufficient security inspection by Inspectors | No. of Branches/currency chests where inspection was due but not done | no. | 30 | 35 | | 20 | IAD | No. of incidents of non Lodgement/ settlement of insurance claim in dacoity/ robbery/ theft cases | No. of Insurance claims in dacoity/ robbery/ theft cases are outstanding at the end of the quarter | % | 2% | 4% | | 21 | IAD | Amount of non Lodgement/ settlement of insurance claim in dacoity/ robbery/ theft cases | Amount of Insurance claims in dacoity/ robbery/ theft cases are outstanding at the end of the quarter | % | 0.001% | 0.002% | | 22 | IAD | Overdue closure of IR upto 6 months | No. of IRs overdue for closure upto 6 months | No. | 475 | 900 | | 23 | IAD | Overdue closure of IR above 6 months | No. of IRs overdue for closure above 6 months | No. | 50 | 100 | | 24 | IAD | High risk rated Branches | %age of branches rated as High Risk as per IR to total no. of branches | % | 5% | 15% | | 25 | LAW | Suits filed against the bank | No. of suits pending against the bank as on Q.E. | no. | 700 | 1500 | | 26 | LAW | Renewal of Lease cases overdue (Other than suit filed cases)| Total no. of lease cases (Other than suit filed cases) renewal is overdue | No. | 150 | 300 | | 27 | LAW | Non lodgment of Insurance claims within time schedule underSFF | Total No. of Non lodgment of Insurance claims within time schedule under SFF | No. | 5 | 10 | ### GAD | | Policy | Policy | |---|---|---| | 28 | Total No. insurance claims outstanding for more than six month under SFF Policy (in No.) | Total No. insurance claims outstanding for more than six month under SFF Policy (in No.) | No. | 150 | 300 | | 29 | Percentage of vendor Service Level agreement (SLA) breaches | %age of Vendor Service Level agreement (SLA) breaches / No. of breaches/Total no. of Conditions x 100 | % | 10 | 25 | | 30 | Loss of Security forms in transit | Loss of Security forms in transit | % | 0% | 0.5% | | 31 | Percentage of instances where remittance was done in wrong accounts through NEFT/RTGS | No. cases where remittance has been done in wrong accounts through RTGS/NEFT/ Total no. of remittances done through NEFT/RTGS / No. of on-us transactions for reconciliation during the quarter / Total no. of on-us transactions | % | 0.05 | 0.10 | | 32 | Percentage of on-us transactions pending reconciliation for customers | Percentage of on-us transactions pending reconciliation for customers / Total no. of customer complaints/ Total no. of transactions | % | 0.01 | 0.05 | | 33 | Percentage of customer complaints to total no. of transactions | Percentage of customer complaints to total no. of transactions | % | 0.40 | 0.70 |