IDBI Bank Directors' Report 2023-2024 PDF

H$m°anmoaoQ> {dh§JmdbmoH$Z gm§{d{YH$ [anmoQ>© {dÎmr¶ {ddaU Corporate Overview Statutory Reports Financial Statements Directors’ Report Your Bank’s Board of Directors is p...

H$m°anmoaoQ> {dh§JmdbmoH$Z gm§{d{YH$ [anmoQ>© {dÎmr¶ {ddaU Corporate Overview Statutory Reports Financial Statements Directors’ Report Your Bank’s Board of Directors is pleased to present the upswing in the business cycle. Aided by healthier balance Report on the Bank’s business and operations for the financial sheets and well-capitalised positions, the banks supported year ended March 31, 2024. the credit expansion that had an accelerator effect in the The global growth remained generally resilient in 2023. economy. During the year, the Reserve Bank of India (RBI) Favourable demand and supply factors supported growth maintained a status quo on its policy rates. The moderate in the major economies, countering the impact of multiple inflationary pressures, coupled with healthy growth, provided shocks as well as of monetary tightening. India continued to the headroom to the RBI to maintain a pause in its policy be one of the fastest growing major economies and posted rates and also maintain an actively disinflationary policy healthy growth of 8.2% in FY 2023-24. The continued stance to ensure anchoring of inflation expectations and resilience displayed by India has led to its emergence as a fuller transmission of policy rate hikes. The pause in the significant economic power, with it contributing to around policy rate hikes ensured that the interest rates remained 16% to the global growth in 2023. India’s efforts to maintain supportive of the growth conditions with robust investment macroeconomic stability and enact structural reforms have and consumption demand leading to double-digit growth in largely contributed to its economic resilience in the face of bank credit. The credit growth was also supported by healthy global challenges. Factors such as expanding infrastructure double-digit growth in deposits, which regained favour as a capacity, revival in investment cycle, rapid growth in digital lucrative investment option, especially among the risk-averse economy, greater integration with global trade flows, skilled investors, on the back of higher interest rates. workforce, large & growing domestic market, strong banking FINANCIAL HIGHLIGHTS sector and greater degree of formalisation in the economy As on March 31, 2024, your Bank’s aggregate deposits have, inter alia, contributed in supporting the domestic and advances touched ` 2,77,657 crore and ` 1,88,621 growth momentum. crore, respectively. Your Bank’s business highlights for The banking sector, which is often cited as the backbone of the period under review are presented in the following the Indian economy, has been well-positioned to support the table: Key Financials (` in crore) As on As on March 31, 2023 March 31, 2024 Capital 10,752 10,752 Reserves & Surplus 34,566 39,129 Deposits 2,55,490 2,77,657 Borrowings 12,638 17,083 Other Liabilities & Provisions 17,056 18,569 Total Liabilities 3,30,502 3,63,190 Cash & Balances with RBI 16,639 13,991 Balances with Banks & Money at Call & Short Notice 12,541 11,942 Investments 99,690 1,14,934 Advances 1,62,568 1,88,621 Fixed & Other Assets 39,064 33,702 Total Assets 3,30,502 3,63,190 For the period 2022-23 2023-24 Total Income 24,942 30,037 Total Expenses (other than provisions) 16,206 20,445 Provisions (other than tax) 3,498 1,397 Profit/ (Loss) Before Tax 5,238 8,195 Provision for Tax 1,593 2,561 Profit/ (Loss) After Tax 3,645 5,634 dm{f©H$ [anmoQ>© Annual Report 2023-24 9 Directors’ Report During the year under review, your Bank’s total income ` 5.24, the Book Value per Share (excluding intangible assets amounted to ` 30,037 crore, comprising interest income of and Deferred Tax Asset (DTA)) stood at ` 30.55 as at March ` 26,426 crore and other income of ` 3,611 crore. Interest 31, 2024. expenses stood at ` 12,240 crore and operational expenses The Board of Directors have recommended a dividend of at ` 8,205 crore, accounting for total expenditure (excluding ` 1.50 per equity share of face value of ` 10 each of the provisions and contingencies) of ` 20,445 crore. Bank for the financial year ended March 31, 2024, subject During the year, the Bank earned net profit of ` 5,634 crore. to approval of the shareholders at the 20th Annual General While the Earnings per Share (EPS) during the year was Meeting. REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES AND JOINT VENTURE INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT AS ON MARCH 31, 2024 Net Assets i.e. total assets Share on profit or loss minus total liabilities Name of the Entity As % of Amount As % of Amount consolidated (` in crore) consolidated (` in crore) net assets profit or loss Parent : IDBI Bank Ltd. 97.37% 49,882 97.34% 5,634 Subsidiaries Indian : 1. IDBI Capital Markets & Securities Ltd. 0.66% 337 0.13% 7 2. IDBI Intech Ltd. 0.23% 118 0.18% 10 3. IDBI Asset Management Ltd. 0.42% 215 1.39% 81 4. IDBI MF Trustee Co. Ltd. 0.00% 2 0.00% (0.08) 5. IDBI Trusteeship Services Ltd. 0.66% 337 0.99% 57 Foreign: NA NA NA NA Minority Interest in all Subsidiaries 0.30% 153 0.45% 26 Associates (Investment as per the equity method) # Indian: 1. Biotech Consortium India Ltd. NA NA 0.00% - 2. National Securities Depository Ltd. NA NA 0.88% 51 3. North Eastern Development Finance Corporation Ltd. NA NA 0.00% - 4. Pondicherry Industrial Promotion Development & NA NA NA NA Investment Corporation Ltd. (PIPDICL) Foreign: NA NA NA NA Joint Ventures (as per proportionate consolidation/ investment as per the equity method) Indian: 1. IDBI Federal Life Insurance Company Ltd. 0.00% - 0.00% - Foreign: NA NA NA NA Total 99.64% 51,044 100.46% 5,815 Elimination 0.36% 182 (0.46%) (27) Net Total 100.00% 51,226 100.00% 5,788 Note: None of the above subsidiaries have any subsidiary. # - In respect of PIPDICL, the Bank has not received any financial statements & transaction details from the company and hence, information is not consolidated in the above table. The Bank has written down investment in PIPDICL to Rupee One. 10 Friendship That Powers Progress  H$m°anmoaoQ> {dh§JmdbmoH$Z gm§{d{YH$ [anmoQ>© {dÎmr¶ {ddaU Corporate Overview Statutory Reports Financial Statements MATERIAL CHANGES AND COMMITMENTS, IF DETAILS OF SIGNIFICANT CHANGES (I.E. ANY, AFFECTING FINANCIAL POSITION OF IDBI CHANGE OF 25% OR MORE AS COMPARED TO BANK WHICH HAVE OCCURRED DURING THE THE IMMEDIATE PREVIOUS FINANCIAL YEAR) END OF FINANCIAL YEAR AND THE DATE OF IN KEY FINANCIAL RATIOS, ALONG WITH A BOARD REPORT DETAILED EXPLANATION THEREOF There were no material changes and commitments affecting Particulars FY 2022-23 FY 2023-24 Comments the financial position of the Bank, which occurred between Return on 1.20% 1.65% Net profit for the end of the financial year, i.e. March 31, 2024 and the date Assets FY 2023-24 is of the Directors’ Report. ` 5,634 crore as compared to net THE DETAILS IN RESPECT OF ADEQUACY profit of ` 3,645 OF INTERNAL FINANCIAL CONTROLS crore in FY 2022-23. WITH REFERENCE TO THE FINANCIAL Net NPA 0.92% 0.34% Net NPA decreased STATEMENTS ratio by ` 851 crore and Net Advances According to Section 143(3) (i) of the Companies Act 2013, increased by the report of the Statutory Auditors should state whether ` 26,053 crore in the Bank has adequate Internal Financial Controls (IFCs) FY 2023-24 over FY 2022-23. system in place and what is the operating effectiveness of such controls in the context of the financial statements. The Gross NPA 6.38% 4.53% The Bank’s Gross IFCs, as referred to in Section 143(3) (i) of the Companies Act, Ratio NPA decreased by ` 2,052 crore and relate to Internal Financial Controls Over Financial Reporting gross advances (IFCO-FR). The Bank’s Management is responsible for increased by establishing and maintaining internal financial controls ` 24,852 crore in based on the internal control over financial reporting FY 2023-24 over criteria established by the Bank considering the essential FY 2022-23. components of internal control stated in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered CAPITAL ADEQUACY Accountants of India (ICAI). These responsibilities include In adherence to the Pillar 1 guidelines of the RBI under design, implementation and maintenance of adequate Basel III framework, your Bank computes regulatory capital internal financial controls that were operating effectively for requirement for credit, market and operational risks on a ensuring the orderly and efficient conduct of its business, monthly basis. In addition to maintaining the minimum Capital including adherence to the Bank’s policies, safeguarding of to Risk-weighted Assets Ratio (CRAR), banks in India are its assets, prevention and detection of frauds and errors, mandated to maintain the Capital Conservation Buffer (CCB) accuracy and completeness of the accounting records and of 2.50%. Accordingly, your Bank’s ‘Total Capital + CCB’ ratio timely preparation of reliable financial information, as required was 22.26% as on March 31, 2024 as against the regulatory under the Companies Act, 2013, the Banking Regulation requirement of 11.50%. Similarly, your Bank’s ‘Common Act, 1949 and the guidelines issued by the RBI. Your Bank Equity Tier 1 (CET1) + CCB’ ratio was 20.11% as against the has put in place an IFCO-FR framework for evaluation of regulatory requirement of 8.00%. Your Bank’s ‘Tier 1 + CCB’ ratio stood at 20.11% as on March 31, 2024 as against the the existing internal financial controls system and appointed regulatory requirement of 9.50%. Your Bank’s Leverage Ratio a consultant for validating the compliances with respect was 8.53% as on March 31, 2024 as against the minimum to the documentation, certification, reporting process of regulatory requirement of 3.50%. the controls across all business verticals/ departments and ascertaining the adequacy and effectiveness of the BUSINESS STRATEGY controls in the Bank in all material respects with respect to Capitalising on opportunities and navigating challenges, financial reporting. During FY 2023-24, the consultant has your Bank continued to operate along a strategic business submitted the Internal Compliance Certificate for the quarters plan that led to significant improvements in financial and ended June 2023, September 2023, December 2023 and operational health. The core focus remained on profitable March 2024 after carrying out testing and validation of business growth, a strong balance sheet and healthy capital. all the underlying processes as per the Bank’s IFCO-FR To cater to the growing credit demand, low-cost deposits, viz. framework. Current Account & Savings Account (CASA) deposits, were dm{f©H$ [anmoQ>© Annual Report 2023-24 11 Directors’ Report actively built, supplemented by retail term deposits as well Your Bank aims to provide a secure, seamless and as bulk deposits. Focussing on maintaining a granular and convenient banking platform to its customers by deploying well-diversified asset portfolio, the Bank continued to prioritise the best digital experience, technology standards, processes lending to Retail, Agriculture & MSME (RAM) segment and procedures. Towards this end, your Bank has been while also selectively lending to well-rated corporates. The scaling up investment in technology in order to further Bank continued to benefit in terms of business growth and broad-base its digital offerings. Additionally, your Bank has fee income from the business synergies arising from its been strengthening its digital infrastructure and equipping association with Life Insurance Corporation of India (LIC). itself with latest analytical tools and technology in order to This helped the Bank to maintain its Cost of Deposits and enable it to analyse and summarise customer data, to further Cost of Funds at competitive levels. On the assets front, enhance customer experience, to streamline its operations your Bank continued to emphasise on controlling fresh and to drive innovation to meet the evolving needs of the slippages as also on recovery and upgradation efforts to digital world. reduce the delinquency in its asset portfolio. Continued As a retail-focussed bank, your Bank has been catering to improvement in its asset quality helped the Bank to maintain the customers in the Retail, Agriculture and MSME (RAM) its Net Interest Margin (NIM) at a healthy level. The Bank’s segment by offering an entire bouquet of products and customer-centric initiatives prioritised convenience and services to meet their specific requirements. Your Bank offers accessibility with expanded branch network and enhanced a wide range of products and services, viz. deposit products, digital functionalities to provide seamless multi-channel loan products, credit cards, NRI services, among others, to experience with the aim of customer delight. Your Bank’s its retail customers. Your Bank also contributes significantly financial offerings are periodically reviewed and refreshed towards lending to the priority sectors by extending credit to to meet the evolving customer needs and preferences. For Agriculture and Micro Small & Medium Enterprises (MSME) sustaining the profitable growth, the Bank endeavoured sectors. Your Bank has also been leveraging its Business to instil a robust risk and compliance culture across the Correspondent (BC)/ Business Facilitator (BF) network to organisation by encouraging best practices among the entire expand its reach to unserved and underserved sections of workforce. The Bank remains committed to the highest the society. Your Bank has been proactive in furthering the corporate governance standards, promoting fairness, ethics objective of financial inclusion by ensuring access to financial and transparency to retain stakeholder trust and become the products and services to the vulnerable sections of the most trusted and preferred bank. society at affordable cost in a fair and transparent manner. Furthermore, your Bank has been conducting various KEY BUSINESS INITIATIVES outreach programmes to spread awareness among people Your Bank has adopted a customer-first approach with its about various banking products, thereby enhancing financial business strategy centred around meeting the changing literacy. customer needs and preferences and creating delightful Your Bank is also exploring viable financing opportunities experiences with excellent service. Your Bank is leveraging to well-rated corporates to augment its corporate loan its scalable hybrid delivery model, viz. its physical touchpoints book in a selective, calibrated and risk-contained manner. of 2,004 branches and 3,303 ATMs and its digital channels Your Bank continues to focus on fresh acquisition of to connect with its customers spread across the country. In well-rated corporate accounts as well as deepening its existing addition to an entire gamut of traditional banking products business. Furthermore, the Bank has been targeting growth and services, your Bank also offers customised and innovative in interest and fee income through focussed improvement banking and financial solutions to its customers. Furthermore, in utilisation of sanctioned fund-based and non-fund based in accordance with the emerging business landscape and limits and cross-selling. evolving customer preferences, your Bank also fine-tuned Your Bank, while augmenting its loan book, is also focussing its existing bouquet of products and services as also its on maintaining its asset quality by closely monitoring business processes, in order to stay relevant with changing accounts to minimise fresh slippages. Simultaneously, your times. Bank has also been endeavouring to upgrade or implement Your Bank provides a wide range of services on a timely resolution for its stressed assets and NPA cases. round-the-clock basis through a wide range of digital Your Bank, apart from undertaking a slew of business channels such as Mobile Banking, Internet Banking, initiatives, has also been taking various measures such as WhatsApp Banking, UPI, Debit Cards, Credit Cards, Point process improvement, embracing technological innovation, of Sale (PoS) terminals (both physical and digital), Internet upgradation and improvement in its IT infrastructure, among Payment Gateway, ATMs, etc. Your Bank, while promoting other measures, to improve its operational efficiency and use of various digital channels, is also making concerted enhance its business potential. efforts to increase awareness among its customers regarding The detailed description of the Bank’s initiatives undertaken safe and secure banking practices while transacting through during the year is outlined in the Management Discussion and digital channels. Analysis section of the Annual Report. 12 Friendship That Powers Progress  H$m°anmoaoQ> {dh§JmdbmoH$Z gm§{d{YH$ [anmoQ>© {dÎmr¶ {ddaU Corporate Overview Statutory Reports Financial Statements IMPACT OF COVID-19 PANDEMIC ON THE Steering Committee, Frauds Monitoring Committee, BANK’S BUSINESS Recovery Review Committee, Risk Management Committee, CSR & ESG Committee, Non-Cooperative Borrowers’ The COVID-19 virus, a global pandemic, affected Review Committee, Customer Service Committee, Wilful the world’s economy over the last couple of years. Defaulters’ Review Committee and Information Technology The extent to which COVID-19 pandemic will further Strategy Committee. impact the Bank’s operations will depend on ongoing as well as future developments. The management of CORPORATE GOVERNANCE the Bank is closely monitoring the developments in this regard. Your Bank is committed to adopt the best corporate governance practices. The Bank believes that effective BOARD OF DIRECTORS corporate governance is not just a requirement for regulatory compliance, but also a facilitator for excellence in governance Your Bank’s Board of Directors is broad-based and its including enhancement of stakeholders’ value. The details of constitution is governed by the provisions of the Banking your Bank’s corporate governance practices are given in this Regulation Act, 1949, guidelines issued by the Reserve Annual Report as a separate section under the Corporate Bank of India (RBI), the Companies Act, 2013, Securities & Governance Report. Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 [SEBI (LODR) Regulations] BUSINESS RESPONSIBILITY & SUSTAINABILITY and the Articles of Association of the Bank. The Board REPORT functions directly as well as through various Board-level committees which have been constituted to provide focussed With effect from FY 2022-23, SEBI has mandated the top governance in the important functional areas of the Bank. As one thousand listed entities based on market capitalisation to per the Articles of Association, the Board of Directors shall not submit Business Responsibility & Sustainability Report (BRSR) be less than three and more than fifteen members consisting in the format as specified under SEBI (LODR) Regulations. of a Chairman, a Managing Director and Chief Executive The BRSR is intended towards having quantitative and Officer (MD & CEO), two Deputy Managing Directors (DMDs), standardised disclosures on ESG (Environment, Social and two Nominee Directors of LIC, two Nominee Directors of Governance) parameters to enable comparability across Government of India (GoI) and eight Independent Directors companies, sectors and time. In compliance with the SEBI (including the Chairman and one Woman Independent norms, the Bank’s BRSR for FY 2023-24 has been prepared Director). as per the prescribed format and is included as a part of the Annual Report as a separate section, viz. Business As on March 31, 2024, the Board comprised fourteen Responsibility & Sustainability Report and also hosted on Directors, viz. Shri T. N. Manoharan, Independent Director & the website of the Bank (https://www.idbibank.in/business- Part-Time Chairman, Shri Rakesh Sharma, MD & CEO and responsibility-and-sustainability-report.aspx). Shri Jayakumar S. Pillai, DMD, as Whole Time Directors; Shri Manoj Sahay and Shri Sushil Kumar Singh, Government STATEMENT UNDER SECTION 134 OF THE Nominee Directors and Shri Mukesh Kumar Gupta and COMPANIES ACT, 2013 READ WITH RULE 5 Shri Raj Kumar, LIC Nominee Directors, as Non-Executive OF THE COMPANIES (APPOINTMENT AND Directors; Shri Bhuwanchandra B. Joshi, Shri Samaresh REMUNERATION OF MANAGERIAL PERSONNEL) Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri RULES, 2014 Sanjay Gokuldas Kallapur, Smt. P. V. Bharathi and Shri Ajay Prakash Sawhney as Independent Directors. The strength of There were three personnel in your Bank’s service, during 14 (fourteen) Directors on the Board as on March 31, 2024 the financial year under review, who received remuneration meets the requirement provided under Article 114(a) of the of over ` 1.02 crore annually. Further, there was no personnel Articles of Association of the Bank. in the service of the Bank for a part of the year who received remuneration in excess of ` 8.50 lakh per month. Also, there APEX COMMITTEES was no personnel employed throughout the financial year or part thereof who was in receipt of remuneration at a rate, The Board has a total of thirteen committees to oversee various which in the aggregate, was in excess of that drawn by functional areas of your Bank’s business and operations. Managing Director & CEO or Deputy Managing Directors of The Board committees include Audit Committee of the the Bank and who held by himself or along with his spouse Board, Executive Committee, Nomination & Remuneration and dependent children, not less than 2% of the equity Committee, Stakeholders’ Relationship Committee, HR shares of the Bank. dm{f©H$ [anmoQ>© Annual Report 2023-24 13 Directors’ Report STATEMENT UNDER RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 FOR YEAR ENDED MARCH 31, 2024 – DETAILS OF TOP TEN EMPLOYEES Sr. Name Designation Annual Nature of Qualifications of the Date of Experience Age of The last No. Remuneration employment, employee commencement of the such employment received (`)* whether of employment employee employee held by such contractual in IDBI employee or otherwise Bank before joining the company 1 Shri Rakesh Sharma Managing 2,10,34,551.44 Contractual Post Graduate in 10-Oct-18 5 years & 5 65 Canara Bank Director & Economics & CAIIB months Chief Executive Officer 2 Shri Suresh Deputy 1,25,85,799.42 Contractual M.Com, ICWA & 23-Jun-97 26 years & 9 60 Dena Bank Khatanhar Managing CAIIB months Director 3 Shri Arun Kumar Head-Treasury 1,07,50,937.55 Contractual B.Com & M.Com 15-Jun-22 1 year & 9 53 Indian Bank Bansal months 4 Shri Om Prakash Chief 90,27,129.88 Contractual B.Tech (Electronics) 23-Jan-23 1 year & 2 50 Aditya Birla Seth Information & MBA months Capital Officer 5 Shri Padmabhushan Chief 72,90,538.88 Contractual Bachelor of 01-Aug-19 4 years & 7 47 State Bank of Bahadure Technology Engineering, months India Officer Management Programme & Post Graduate Diploma 6 Shri Nagaraj Garla Executive 67,84,490.40 Employee B.Com, M.Com, 17-Feb-00 24 years 54 ING Vysya Director I.C.W.A (Inter) & Bank M.B.A 7 Smt. Baljinder Kaur Executive 64,91,408.28 Employee B.E. & P.G.D.M 01-Jun-88 35 years & 9 58 Not Applicable Mandal Director months 8 Shri Sunit Sarkar Executive 64,26,392.28 Employee B.Tech, Post 01-Sep-93 30 years & 6 57 ESAB India Ltd. Director Graduate Diploma months in Business Management & I.C.W.A 9 Shri Jayakumar S. Deputy 62,60,668.45 Contractual B.F.Sc & MBA 12-Jun-23 9 months 58 Canara Bank Pillai Managing Director 10 Shri Shalil Mukund Executive 62,50,278.94 Employee B.Tech & M.Tech 16-Oct-96 27 years & 5 55 National Awale Director months Environmental Engineering Research Institute * - Remuneration includes basic salary, allowances, perquisites as per the Income Tax rules but excludes employer’s contribution to PF/ Pension, non-monetary perquisite tax and accrued retirement benefits. CONSERVATION OF ENERGY, TECHNOLOGY to switch-off all electrical gadgets/ fixtures when not in ABSORPTION, FOREIGN EXCHANGE EARNINGS use. Furthermore, all branches and offices of the Bank AND OUTGO have been advised to operate Air Conditioners (ACs) at 25°-26° centigrade. Furthermore, inverter type/ a) Conservation of Energy Variable Refrigerant Flow (VRF) energy efficient ACs are The Bank has been taking several initiatives towards being used in some of its new branches/ Zonal Offices. conservation of energy. New branches of the Bank The Bank is also maintaining Power Factor (PF) close have been provided with energy efficient light fixtures to to unity through Automatic Power Factor Correction conserve power. The Bank has installed lighting sensors (APFC) Panel in Zonal Offices and metro branches. in cabins for automatic switching-off of the lights in The Bank has also replaced standard electrical motor case the cabin is vacant. The Bank, wherever feasible, with energy efficient motor in Sewage Treatment Plant. promotes use of daylight in branches to conserve All these initiatives have been undertaken as Bank’s electricity. The Bank is also sensitising its employees contribution towards conservation of energy. 14 Friendship That Powers Progress  H$m°anmoaoQ> {dh§JmdbmoH$Z gm§{d{YH$ [anmoQ>© {dÎmr¶ {ddaU Corporate Overview Statutory Reports Financial Statements b) Technology Absorption DIRECTORS’ RESPONSIBILITY STATEMENT Your Bank has been proactively evaluating and The Board of Directors, hereby, declares and confirms that: absorbing the latest technology-based innovations a. In the preparation of the annual accounts, the applicable which have the potential to empower its business accounting standards had been followed along with functions, enrich its customer experience and optimise proper explanation relating to material departures; its readiness towards opportunities and challenges of the future. b. The Directors had selected such accounting policies and applied them consistently and made judgements During the year, your Bank further strengthened its and estimates that are reasonable and prudent so as IT infrastructure with rolling-out the Software Defined to give a true and fair view of the state of affairs of the Wide Area Network (SD-WAN) to cover all the Bank at the end of the financial year and of the profit branches. Your Bank also upgraded its IT hardware and loss of the Bank for that period; with latest IBM P-Series servers with high compute and processing power. Your Bank augmented its on- c. The Directors had taken proper and sufficient care premise Private Cloud to increase the capacity and for the maintenance of adequate accounting records compute and to meet the increasing needs of the in accordance with the provisions of the Companies business for just-in-time provisioning of IT resources. Act for safeguarding the assets of the Bank and for Your Bank has also implemented bank-wide Microsoft preventing and detecting fraud and other irregularities; 365 (M365) based Collaboration and Office Productivity d. The Directors had prepared the annual accounts on a tools. Your Bank has set up a centralised inventory going concern basis; of IT Assets and is rolling out industry standard tools e. The Directors had laid down internal financial controls for IT service management and ticketing. Your Bank to be followed by the Bank and that such internal is also implementing Zero Trust Network Architecture financial controls are adequate and were operating (ZTNA) and Virtual Desktop Interface (VDI) to support effectively; and secured access for work from anywhere. Your Bank has implemented Data Leakage Prevention (DLP) tool f. The Directors had devised proper systems to ensure to safeguard data of the Bank and its customer. Your compliance with the provisions of all applicable laws Bank has also implemented enterprise-grade Web and that such systems were adequate and operating Application Firewall (WAF) to protect the customer effectively. facing applications from any cyber-attacks. ACKNOWLEDGEMENTS Your Bank has reduced its count of physical servers Your Bank’s Board of Directors is sincerely grateful to the and increased adoption of virtualised and on-premise Government of India, Reserve Bank of India (RBI), Securities private cloud setup, thereby reducing the consumption and Exchange Board of India (SEBI), all other statutory/ of energy and the related e-waste. regulatory authorities and Life Insurance Corporation of Details of initiatives taken in the Information Technology India (LIC) for their valuable co-operation and guidance. The Board also acknowledges with gratitude, the co-operation ecosphere have been provided in the Management and support received from various State Governments and Discussion and Analysis section of the Annual Report. other banks/ financial institutions. The Board thanks various c) Foreign Exchange Earnings and Outgo multilateral institutions and international banks/ institutions for their support. The Board takes this opportunity to put on During the year, the total foreign exchange earned record its deep sense of gratitude to its loyal shareholders by the Bank was ` 774.21 crore (excluding foreign and customers for extending their support during the year currency cash flows in derivatives and foreign currency and looks forward to their continued association in the years exchange transactions) and the total foreign exchange ahead. The Board appreciates the sincere and devoted outgo was ` 72.99 crore towards the operating and services rendered by its entire staff and highly values their capital expenditure requirements. commitment towards the Bank. [Jayakumar S. Pillai] [Rakesh Sharma] Deputy Managing Director Managing Director & CEO Place: Mumbai Date: May 30, 2024 dm{f©H$ [anmoQ>© Annual Report 2023-24 15