1

Performance Highlights of BGVB

as on 31.03.2013

1. Total Business ` 11574.31 Crore` 11574.31 Crore` 11574.31 Crore` 11574.31 Crore

2. Total Deposits ` 7641.99 Crore` 7641.99 Crore` 7641.99 Crore` 7641.99 Crore

3. Total Advance ` 3932.31 Crore` 3932.31 Crore` 3932.31 Crore` 3932.31 Crore

4. Profit ` 31.69 Crore` 31.69 Crore` 31.69 Crore` 31.69 Crore

5. CRAR 9.55 %9.55 %9.55 %9.55 %

6. Business per Branch ` 20.16 Crore` 20.16 Crore` 20.16 Crore` 20.16 Crore

7. Business per Employee ` 4.14 Crore` 4.14 Crore` 4.14 Crore` 4.14 Crore

8. Profit per Employee ` 1.13 ` 1.13 ` 1.13 ` 1.13 LacLacLacLac

BANGIYA GRAMIN VIKASH BANK HEAD OFFICE : BERHAMPORE

NH-34, CHALTIA, CHUANPUR, BERHAMPORE

MURSHIDABAD, W.B.-742101

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1. Chairman : Sri Umesh Chandra (Appointed by United Bank of India Under Sec.11 (1) of the RRB Act, 1976) 2. Nominee of Govt. of India : i) Sri Amitava Chakraborty, 6-A, Radhanath Mallik Lane Kolkata-700 012 (ii) Ms Soghra Azeez

Vill- Biprit, Bahar, P.O- Goalpokher Dist-Uttar Dinajpur-733210

(Nominated under Sec.9 (1) (a) of the RRB Act 1976) 3. Nominee of Reserve Bank of India: Smt Raksha Mishra

Deputy General Manager Rural Planning & Credit Department

Reserve Bank of India, 15 N.S Road, Kolkata-700001 (Nominated under Sec.9 (1) (b) of the RRB Act, 1976) 4. Nominee of National Bank : Sri P. Narasimhan,

General Manager National Bank for Agriculture & Rural Development, Abhilasa, 6 Royd Street, Kolkata-700016

(Nominated under Sec.9 (1) (c) of the RRB Act, 1976) 5. Nominees of Sponsor Bank : i) Sri Manas Kumar Dhar

General Manager (Prisec & FI) United Bank of India, Head Office, 11, Hemanta Basu Sarani, Kolkata-700001

(Nominated under Sec.9 (1) (d) of the RRB Act, 1976)

ii) Md. Abdul Wahid DGM & Chief Regional Manager, United Bank of India Murshidabad Region 26/11 Sahid Surya Sen Road, Berhampore - 742101 (Nominated under Sec.9 (1) (d) of the RRB Act, 1976)

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6. Nominees of Govt. of West Bengal : i) Sri Sourav Das IAS Principal Secretary

Panchayate and Rural Development Department, Govt of West Bengal 63, N.S Road, Kolkata 700001

(Nominated under Sec.9 (1)(e) of the RRB Act, 1976) ii) Mr A K Das Special Secretary Finance Department, Government of West Bengal & Managing Director, WBIDFC, Mangalam Building, Block-A 24, Hemanta Basu Sarani, Kolkata 700 001 (Nominated under Sec.9 (1)(e) of the RRB Act, 1976)

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BANGIYA GRAMIN VIKASH BANK (A Joint Enterprise of Govt. of India, Govt. of West Bengal and United Bank of India)

HEAD OFFICE: BMC HOUSE, CHUAPUR, NH-34 PO- CHALTIA, DIST- MURSHIDABAD 742 101 (W.B)

The Board of Directors of Bangiya Gramin Vikash Bank have the pleasure to present herewith, in terms of provisions made under Section 20 of the Regional Rural Bank Act 1976, the 7th Annual Report of the Bank along with the Audited Balance Sheet as on 31.03.2013, Profit & Loss Account for the accounting period from 01st April, 2012 to 31st March, 2013, and Auditor’s Report thereon. A brief review of the performance of the bank in various functional areas is presented below.

BRIEF INTRODUCTION

Bangiya Gramin Vikash Bank was set up on 21st February, 2007 by amalgamation of the five RRBs sponsored by United Bank of India in the State of West Bengal viz. Gour Gramin Bank (GGB), Mallabhum Gramin Bank (MGB), Sagar Gramin Bank (SGB), Nadia Gramin Bank (NGB), and Murshidabad Gramin Bank (MuGB) under the provision of section 23(A) of RRB Act, 1976, having its Head Office at Berhampore, District Murshidabad, West Bengal. The operational area of Bangiya Gramin Vikash Bank was kept unchanged as was covered by the constituent RRBs. The prime objective of the Bank remains undiluted, to act as a catalyst to develop rural economy through credit dispensation to productive activities to agrarian populace. With the higher exposure limit, Bank is now enabled to cater to the need of emerging enterprises mainly in the field of agriculture and MSME. In the process, our focus continues to be on JLG, SHG and KCC in Agriculture Sector and enterprises under MSME Sector.

7th ANNUAL REPORT OF THE

BOARD OF DIRECTORS

2012-2013

(For the period from 01.04.2012

to 31.03.2013)

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ECONOMIC SCENERIO: 1. The declining trend in the GDP growth is proving to be another major concern for the government at the moment. After a disappointing growth rate of 5.4% in the first half of 2012-13, the yearly estimates for 2012-13 have been downgraded and it is now expected to grow at only around 5%. The country’s GDP growth at 5.3% in the second quarter is one of its lowest quarterly growth rates in the last decade and annual growth of 5% will be the lowest since 2002-03. The industrial sector, usually sizing more than one fourth of the total GDP, performed significantly below par this year with growth of mere 1% during the first half of 2012-13 as against 4.6% in first half of 2011-12. The under-performing manufacturing sector, particularly the capital goods industries, poses a real challenge for the country. Though subdued investment activity may play a spoiler, systematic implementation of National Manufacturing Policy as well as rise in external demand will play a critical role in reviving industrial growth. In the agricultural sector, good winter crop sowing prospects are expected to overcome the negative effect of a deficient summer crop output. The yearly output is likely to be better than the 2.1% growth achieved in first half of 2013, though overall the year is expected to close at a lower level compared to earlier years. A larger concern exists on the services sector which has moderated during 2012. With “trade, hotels, transport, storage and communication” an important sub-sector in services performing the worst, various indicators of services sector activities such as cargo handling, civil aviation & railway freight etc. suggest further weakening of growth. Additionally, the uncertain global outlook is likely to affect services exports adversely

Overall, besides domestic pressures, with global recovery likely to remain muted in the near future, economic revival in India will be a challenge. All round efforts in removing impediments in business activity and instilling investor confidence will be necessary to revive

2. BRANCH NETWORK Bangiya Gramin Vikash Bank continues to be the largest Regional Rural Bank in the state of West Bengal with a branch network of 574 covering 11 out of 18 districts of the state. The district-wise break up of branches as on 31.03.2013 is as follows:

DISTRICTS No. of Branches

Rural Semi- Urban

Urban Metropolitan

Malda 58 51 6 1 0

Uttar Dinajpur 35 31 2 2 0

Dakshin Dinajpur 29 26 2 1 0

Murshidabad 73 45 26 2 0

Nadia 67 48 16 3 0

24 Paraganas (North) 55 45 4 6 0

24 Paraganas(South) 71 62 7 2 0

Bankura 70 66 2 2 0

Purulia 30 28 1 1 0

Purba Medinipur 49 45 2 2 0

Paschim Medinipur 37 36 0 1 0

TOTAL 574 483 68 23 0

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Besides, there is one Extension Counter under our Hatiara Branch under North 24 Parganas District. During the year under report 1 new branch, namely Airmary, was opened in the Murshidabad district. 3. SHARE CAPITAL

The detailed break up of Share Capital Account of the Bank as on 31.03.2013 is given below: (Amount in `. lakh)

Share Holders Issued/Called up Paid up

Government of India 250 250

Government of West Bengal 75 75

United Bank of India 175 175

TOTAL 500 500

During the year under report, the Bank has received recapitalization support to the tune of Rs 26500.00 lakh contributed by Govt of India, United Bank of India and Govt of West Bengal in proportion to their shareholding

Apart from Share Capital contribution as on 31.03.2013, the recapitalization support received by the Bank during pre-amalgamation and post-amalgamation period stands at `̀̀̀ 63880.22 lakh which has been shown as Share Capital Deposit in the Balance Sheet. The detailed break up of Share Capital Deposit Account as on 31.03.2013 is as follows:

(Amount in `̀̀̀.lakh)

Share Holders Share Capital Deposit % of Share Capital Deposit

Government of India 31940 50

Government of West Bengal 9582 15

United Bank of India 22358 35

TOTAL 63880 100

4. DEPOSIT

Bank has recorded a growth of 14.40 % in total deposit against 11.53 % recorded during the corresponding period last year. However, share of low cost deposit has gone down from 57.53% as on 31.03.2012 to 55.19% as on 31.03.2013. While the growth rate is admittedly subdued and a matter of concern, the phenomenon is reflective of economic downturn experienced during the last couple of years. With a view to mitigating low growth rate and pegging the cost of deposit at further low, the Bank has already launched customer acquisition, especially CASA deposit campaign. The movement in deposit of the Bank during last three years is furnished below:

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(Amount in `̀̀̀. Lakhs)

Particulars 31.03.11 Growth %

31.03.12 Growth %

31.03.13 Growth %

Current Deposit 15971 (2.67)

1.66 21489 (3.22)

34.55 20315 (2.66)

-5.46

Savings Deposit 337544 (56.35)

22.26 360108 (53.91)

6.68 401405 (52.53)

11.47

Term Deposit 245439 (40.98)

5.22 286389 (42.87)

16.68 342479 (44.81)

19.59

Total Deposit 598954 16.22 667986 11.53 764199 14.40

5. BORROWING

During the year under report, the bank has drawn refinance from NABARD to the tune of `̀̀̀ 37035 lakhs. The particulars of refinance availed by the Bank in different years are tabled hereunder. (Amount in `̀̀̀. Lakh)

Year Amount Drawn Amount Repaid Amount Otg.

2010-11 15959 14350 22692

2011-12 29000 16876 34816

2012-13 37035 21862 64554

An amount of `̀̀̀ 1933 lakh has been paid as interest on borrowing. The average cost of borrowing works out to be 6.25 % p.a during the year under report as against 5.33% p.a during the previous year. During the year the Bank repaid an amount of `̀̀̀ 21862 lakh to NABARD towards principal. An amount of Rs 2239.00 lakh has been contributed by United Bank of India, on account of support to CBS cost, by way of subscription towards Unsecured Subordinated Non Convertible Perpetual Debt Instrument eligible for inclusion in tier II, floated by the Bank. The Perpetual Bond has been shown under the head “Borrowing” 6. CASH AND BALANCES WITH BANKS The position of Cash-in-hand and balance with Banks stood as follows:

(Amount in `̀̀̀. Lakh)

Particulars 2010-11 2011-12 2012-13

Cash at the year end 8630 8135 7214

Average Cash-in-hand 7990 9176 9570

Average Cash as % to average deposit

1.45 1.47 1.35

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6.1 The balance in Current Account held by the Bank was as follows: (Amount in `̀̀̀.Lakh)

Particulars As on 31.03.2011

As on 31.03.2012

As on 31.03.2013

C.A. Balance with

Reserve Bank of India 35457 31255 31002

UBI & Other Banks 10272 16204 16341

TOTAL 45729 47459 47343

7 INVESTMENTS

The outstanding balance of investment as on 31.03.2013 stood at `̀̀̀ 424963 lakh in various Govt. Securities, approved Securities, Shares, Debentures, Bonds and Banks’ Term Deposit etc. The break up of the SLR and Non-SLR investment along with comparative position of the previous year is furnished here-in-below. The moderation in interest rate scenario was conducive to increased trading activities and the focus shifted from yield enhancement to increased trading profit and the effect was visible as the Bank earned a total trading profit of Rs 8025 lakh during the year as compared to 2660 lakh during the previous year. (Amount in `̀̀̀. lakh)

INVESTMENT Outstanding Investment

as on 31.03.2011

Outstanding Investment

as on 31.03.2012

Outstanding Investment

as on 31.03.2013

SLR 185336 181608 174772

Non-SLR 106705 134371 250191

TOTAL 292041 315979 424963

8. LOANS AND ADVANCES OUTSTANDING

The growth of advance of the Bank is furnished in the following table:- (Amt. in `̀̀̀. lakh)

Particulars 31.03.2011 (Gross)

31.03.2012 (Gross)

31.03.2013 (Gross)

Total Advance 286438 347351 393231

From the above it can be observed that the total credit of the Bank has increased from `̀̀̀ 347351 lakh (Gross) as on 31.03.2012 to `̀̀̀ 393231 lakh (Gross) as on 31.03.2013 registering a growth of 13.21% on Year-on-Year basis compared to 21.27% growth witnessed during the previous year. The Bank is optimistic that through intensive customer acquisition drive already launched will lead to optimize credit deployment also.

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8.1 SECTORAL BREAK UP OF OUTSTANDING ADVANCE

As against a minimum requirement of 60% of total advance under priority sector in case of RRB, the percentage of Priority sector advances to total advances (Gross) stood at 60.90% as on 31.03.2013 compared to 61.26% as on 31.03.2013.The share of priority sector advances has plummeted due to floating of Inter Bank Participatory Certificate (IBPC) for `̀̀̀ 986.00 crore against underlying assets representing our priority sector advances which has been subscribed to by United Bank of India, our sponsor Bank. Similarly the Bank participated in IBPC for `̀̀̀ 986.00 crore floated by United Bank of India, against underlying assets representing their non- priority sector advances. The category-wise break up of loans & advances (Gross) outstanding as on 31.03.2013 as compared to the corresponding figure on 31.3.2011 & 31.03.2012 is furnished below.

(Amount in `̀̀̀. Lakh) Category of Advance

Gross Advance outstanding as on

31.03.2011

Gross Advance outstanding as on

31.03.2012

Gross Advance outstanding as on

31.03.2013

PRIORITY SECTOR

Amount % to Total

Amount % to Total

Amount % to Total

Argil. & Allied Activities

114143 39.85 68462 19.71 88839 22.59

MSME 78887 27.54 84854 24.43 88670 22.55

Other Priority Sector 45356 15.83 59466 17.12 61966 15.76

Total Priority Sector 238386 83.22 212782 61.26 239475 60.90

Non-Priority Sector 48052 16.78 134569 38.74 153756 39.10

Total Advances 286438 100 347351 100 393231 100

Without considering IBPC scenario,, our extent of involvement in the key focus areas, would have been as under:- (Amount in `̀̀̀. Lakh)

Category of Advance

Gross Advance outstanding as on

31.03.2011

Gross Advance outstanding as on

31.03.2012

Gross Advance outstanding as on

31.03.2013

PRIORITY SECTOR

Amount % to Total

Amount % to Total

Amount % to Total

Argil. & Allied Activities

114143 39.85 148462 42.74 172839 43.95

MSME 78887 27.54 84854 24.43 103270 26.26

Other Priority Sector 45356 15.83 59466 17.12 61966 15.76

Total Priority Sector 238386 83.22 292782 84.29 338075 85.97

Non-Priority Sector 48052 16.78 54569 15.71 55156 14.03

Total Advances 286438 100 347351 100 393231 100

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8.2 FRESH DISBURSEMENT During the year under report Bank has made fresh disbursement of Advance for `̀̀̀ 197926 lakh against that of `̀̀̀228581 lakh during the corresponding previous year. The target

for fresh disbursement was `̀̀̀502379 lakh indicating percentage achievements of 39.40%. `̀̀̀. in Lakh

Category During the year ending 31.03.2011

During the year ending 31.03.2012

During the year ending 31.03.2013

Agril. & Allied Activities

81842 142079 140274

MSME 41775 31877 32645

Other Priority Sector 34867 22625 11467

Total Priority Sector 158484 196581 184386

Non-Priority Sector 24355 32000 13540

Total Fresh Disbursement

182839 228581 197926

Bank has put in utmost effort to increase its Credit Deposit Ratio. After the credit dispensation having received an initial set back on account of the draught situation, the Bank witnessed a steady growth in credit outlay from October 2012 onwards. 8.3 ASSET QUALITY

a) Asset Classification:

In compliance to the RBI guidelines, the Bank has classified its Loans and Advances portfolio as per IRAC norms and necessary provisions have been made. The position as on 31.03.2013 along with corresponding figures as on 31.3.2012 and 31.3.2011 is furnished below. (`̀̀̀. in lakh)

Asset Classification 31.03.2011 31.03.2012 31.03.2013

Standard 270354 329870 363339

Sub-Standard 3280 4924 18109

Doubtful 12313 12183 11675

Loss Assets 490 374 108

Total NPA 16083 17481 29892

Total Advance 286438 347351 393231

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The movement of Asset Classification is given below: (`̀̀̀. in lakh)

Particulars 2010-11 2011-12 2012-13

NPA at the beginning of the year 17750 16083 17481

Recovery/Reduction of NPA 4947 3526 12549

Addition to NPA during the year 3280 4924 24960

NPA at the end of the year 16083 17481 29892

Gross NPA as % to Gross advances

5.61% 5.03% 7.60%

Provision against NPA 7883 8893 10872

Net NPA 8200 8588 19020

Net NPA as % of net advances 2.95% 2.54% 4.97

Non Performing Assets have increased from `̀̀̀ 17481 lakh as on 31.03.2012 to `̀̀̀ 29892 lakh as on 31.03.2013, notwithstanding substantial reduction effected to the tune of `̀̀̀ 12549 lakh during the

period under review, due to fresh slippage to the tune of 24960 lakh on account of rigorous compliance with IRAC norms through “System”.

b) Provisioning `̀̀̀. in Lakh

Segments

Provision as on 31.03.2011

Provision as on 31.03.2012

Provision as on 31.03.2013

Standard 1262 1120 1534

Sub-Standard 333 496 2679

Doubtful 7060 8023 8085

Loss Asset 490 374 108

TOTAL 9145 10013 12406

During the year under report, the level of NPA has gone up from `̀̀̀ 17481 lakh as on 31.03.2012 to `̀̀̀ 29892 lakh as on 31.03.3013. The provision requirement of the Bank on its

Loans and Advances portfolio stands at `̀̀̀ 12406 lakh as on 31.03.2013 as against `` 10013 lakh as on 31.03.2012, thus resulting in fresh provision to the extent of `̀̀̀ 2393 lakh, after

taking care of utilization from the provision account by the tune of `̀̀̀ 175 lakh for writing off of Bad & Doubtful Assets during the year under audit. The provision coverage ratio stands at 36.37 as on 31.03.2013. NPA Management: Fresh generation of NPA has been assessed at `̀̀̀ 24960 lakh. Gross NPA as percentage of gross advance has increased from 5.03% as on 31.03.2012 to 7.60% as on 31.03.2013. Net NPA as percentage of Net Advance has also increased from 2.54 as on 31.03.2012 to 4.97 as on 31.03.2013. The increase in NPA level is attributed to rigorous compliance to IRAC norms. However, as a part of its continuous endeavor, Bank is contemplating setting up of Assets Recovery Management (ARM) Branch to lend focused attention on recovery of its impaired and stressed assets, subject to approval by RBI.

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The table showing movement of NPA is furnished below: (Amount in `̀̀̀. Lakh)

7.4 RECOVERY OF LOAN The percentage recovery of Bank’s Outstanding Advance has posted improvement from 77.12% during 2011-12 to 77.71% during 2012-13. (Amount in `̀̀̀. Lakh)

Year Demand Collection Balance Recovery %

2010-11 113442 86545 26897 76.29

2011-12 155405 119848 35557 77.12

2012-13 191443 148767 42676 77.71

7.5 SARFAESI During the financial year 2012-11, Demand notices under SARFAESI Act, 2002 were issued to 34 borrowing units with aggregate outstanding amount of ` 3559.00 lakh. 7.6. New Initiatives:

Weavers’ Credit Card: In compliance with the guidelines issued by the Ministry of Finance (MOF), Department of Financial Services (Banking Division) and The Ministry of Textiles (MoT), Government of India, weavers’ credit card scheme has been introduced by the Bank during the year under report. 8. PRODUCTIVITY Per Branch & Per Employee Business & Growth The comparative study of per Branch & per employee business for last three years is given below:-

(Amount in `̀̀̀. lakh)

Particulars

As on 31.03.2011

As on 31.03.2012 As on 31.03.2013

Amount Growth (%) Amount Growth (%) Amount Growth (%)

Total Business 885392 19.81 1015337 14.68 1157430 13.99

CD Ratio 47.82 4.18 52.00 4.18 51.46 -0.54

Per Branch Business 1603.97 19.37 1771.97 10.47 2016.40 13.79

Per Employee Business 296.91 22.18 352.30 18.66 414.40 17.63

Classification of NPA 31.03.2011 31.03.2012 31.03.2013

Sub-Standard 3280 4924 18109

Doubtful 12313 12183 11675

Loss Assets 490 374 108

Total NPA 16083 17481 29892

Total Advance 286438 347351 393231

% of Gross NPA 5.61% 5.03% 7.60%

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9. FINANCIAL INCLUSION

The Bank has implemented ICT enabled financial inclusion plan in 1277 unbanked villages in the year 2012-13. In the year 2013-14 the Bank has placed order to the two vendors for their respective districts to add another 447 branches having population between 1600 and 2000. A break-up of status according to Technology Service Providers cum Business Correspondents is summarized below: M/S Senrysa Technologies Private Limited: No. of Enrolments as on 31.3.2013 : 48725 No. of Enrolments as on 31.5.2013 : 69026 The process of enrolment is a continuous one and the same is underway . The Company has been further allotted 271 nos of new villages having population between 1600 to 2000. Enrolment in these villages will start soon. The transactions under M/S Senrysa model has already started. M/S Atyati Technologies Private Limited No. of Enrolments as on 31.3.2013 : 93616 No. of Enrolments as on 31.5.2013 : 104018 The Company has been further allotted 176 nos of new villages having population between 1600 to 2000. Enrolment in these villages will start soon. To enable direct on line transactions a testing process is underway. The Bank is actively considering to extend banking at the door step of the rural clientele by extending facilities of KCC , General Credit Card , Swarajgar Credit Card through the BCs. As part of Corporate Social Responsibility the Bank has submitted proposals to NABARD under Financial Inclusion Fund for opening of 5 no of Financial Literacy Center ( FLC) . These centres will actively participate in Financial Literacy.

9.1 No-Frill Account As against 1259319 No Frill Accounts being opened cumulatively upto 31.03.2013, the Bank has opened 292031 numbers of fresh No-Frill Accounts during the F.Y 2012-13. In the process, the Bank has covered all 1277 villages with population of more than 2000, allocated to us. 9.2 General Credit Cards/ Swarojgar Credit Card The Bank has issued 33920 no. of GCC and 12136 no. of SCC during the year under report. The cumulative no. of GCC and SCC issued till 31.03.2013 stands at 76423 and 37843 respectively.

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9.3 KCC: To obviate the problems of poor farmers to approach the bank for sanction of crop loans every time to grow crops, for imparting a longer lease of life to the sanction limit and also to minimize hassles of repeated documentations, the Bank has been extending farm credit in the form of Kisan Credit Card, to as many eligible farmers as possible. During the year Bank has issued 63276 fresh KCCs and as on 31.03.2013 the cumulative number of KCCs has gone up to 716894. 9.4 SHG: Empowerment of rural populace particularly the women section of the society, by inculcating the habit of thrift and credit topped the list of agenda of the Bank. This has been made possible through formation of Self Help Groups and creation of peer pressure. The Bank has SB-linked 6409 numbers of fresh SHGs during the year and as on 31.03.2013, the number of SB linked SHGs stands at 134973. During the year under report Bank credit- linked 9274 numbers of SHGs. As on 31.03.2013 the cumulative number of SHGs credit linked stands at 133813. 9.5 Formation of JLGs: The Bank has been instrumental in forming 7112 number of JLG as against that of 4898 during the last financial year and provided production credit of ` ` ` ` 7170 lakh to landless farmers during the period under report. The cumulative number of JLGs stands at 33202. 9.6 Debt swap: As a part of financial inclusion, the Bank has granted credit with an outstanding balance of ` ` ` ` 15492 lakh to 16229 numbers of farmers to enable them to liquidate their indebtedness to the informal sector.

PROFITABILITY

10. Comparative position of Bank’s Income and expenditure, year wise, is furnished below

INCOME (Amt. `̀̀̀.in lakh)

Particulars/Period 01.04.2010 to

31.03.2011

01.04.2011 to

31.03.2012

01.04.2012 To

31.03.2013

a) Interest on Loans & Advance 24759 33131 40019

b) Interest on Investment 21403 22618 23208

c) Other Interest 0 0 8912

d) Other Income 5779 5784 11440

Total Income 51941 61533 83579

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EXPENDITURE

Particulars/Period 01.04.2010 to

31.03.2011

01.04.2011 to

31.03.2012

01.04.2012 To

31.03.2013

a) Interest on Deposit 28354 33864 42379

b) Interest on Borrowings 1246 1322 1933

c) Other Interest 0 0 8303

c) Establishment Expenditure 16214 16675 17283

d) Other Operating Expenses 2155 5056 4466

e) Provisions excluding Tax 1339 1725 4259

f) Provision for Tax 799 899 1787

Total Expenditure 50107 59541 80410

PROFIT/LOSS Period 01.04.2010

to 31.03.2011

01.04.2011 to

31.03.2012

01.04.2012 To

31.03.2013

Profit (+)/Loss(-) before Tax(PBT) 2633 2891 4956

Profit (+)/Loss(-) after Tax(PAT) 1834 1992 3169 a) Interest on Loans and advances for the year under report has gone up by `̀̀̀ 8372 lakh over that

recorded in the corresponding period last year, thus recording a growth of 29.53% against a growth of 21.27% in Loans and Advance portfolio during the same period. b) Interest income on Investment for the year under report has gone up by `̀̀̀ 1215 lakh over that

recorded in the corresponding period last year. c) Trading income under treasury segment has registered substantial accretion during the year under report. The Income from profit on sale of investment has shot up from to Rs 8025.00 lakh during the F.Y 2012-13 from Rs 2660.00 lakh recorded during the FY 2011-12. d) Interest on Deposit incurred during the current financial year has posted increase of 19.43% over that recorded during the same period in the previous financial year, against increase of 11.53% in total Deposit. e) The Bank, during the year under audit, has continued to experience pressure in the non interest expenditure front comprising higher depreciation on CBS hardware and other operating expenditures (both planned & non-planned) incidental to CBS implementation.

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10.1 FINANCIAL RATIOS The key financial ratios of the Bank based on monthly average have been worked out as under.

Financial Ratios 2011-12 2012-13

A. Average Working Fund 657323 765951

i) Financial Return 8.48 9.42

ii) Financial Cost 5.35 6.87

iii) Financial Margin(I - ii) 3.13 2.55

iv) Operating Cost 3.38 2.84

v) Operating Margin (iii - iv) -0.25 -0.29

vi) Misc. Income 0.88 1.49

vii) Operating Profit (v - vi) 0.63 1.20

viii) Risk Cost 0.19 0.56

ix) Net Margin (vii - viii) 0.44 0.64

Key Ratios

Cost of Deposit 5.43 5.97

Cost of Borrowings 5.33 6.25

Yield on Advance 10.74 10.87

Yield on Investment 7.34 8.62

Cash Deposit Ratio 1.47 1.35

a) While both the financial margin and operating margin have shrunk, from 3.13 and -0.25 respectively during 2011-12 to 2.55 and -0.29 respectively during 2012-13, the same can be attributed to de-recognition of interest on fresh slippage which is considered disproportionately higher. Also inclusion of interest received/paid on IBPC in computation of Financial Return and Financial Cost on Gross basis for the 1st time is responsible for distortion. b) Cost of deposit has been observed to have gone up from 5.43 % as on 31.03.2012 to 5.97 % as on 31.03.2013, mainly due adverse movement in CASA component. c) Both Yield on Advance and Yield on Investment, have witnessed improvement over those recorded in the previous year, indicating more efficiency in portfolio management. d) Miscellaneous income, largely comprising trading profit under treasury segment has shown unprecedented accretion from 0.88 % to 1.49%, thus offsetting the loss in operating margin.

12. MANPOWER POSITION In exercise of the power conferred under section 11(1) of the Regional Rural Bank Act 1976, United Bank of India, the sponsor bank, has appointed the Chairman of the Bank. In addition the bank has two General Manager, in the rank of SMG Scale-V, from the sponsor bank. The position of existing manpower of the Bank, other than the deputed officer, as on 31.03.2012 & 31.03.2013 is as under:

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Sl. No

Category As on 31.03.2012

As on 31.03.2013

1 Officer 1197 1128

2 Clerk-cum-Cashier 1115 1091

3 Sub-Staff 570 574

TOTAL 2882 2793

Out of which number of SC & ST employees as on 31.03.2013 stands as under.

Sub-Staff

Clerk Officer Sc-I

Officer Sc-II

Officer Sc-III

Officer Sc-IV

Total

Total Staff 574 1091 614 450 61 3 2793

SC 147 201 98 77 7 1 531

ST 32 76 21 7 nil nil 136

13. HUMAN RESOURCE DEVELOPMENT

In order to improve the skill & productivity of the staff, 748 Officers and 593 award staff members have been sent to participate in different training programme organized by BIRD, Bolpur, UBI, Staff Training College, Kolkata, CAB, Pune, IIBM, Guwahati and In-house training programme on CBS at Head Office.

The following table will show the comparative position of training imparted to the employees during the last three financial years:

Sl.No Category 2010-11 2011-12 2012-13

1 Officer 811 748 412

2 Clerk 531 593 147

3 Sub Staff 95 0 0

TOTAL 1437 1341 559

14. INSPECTION AND AUDIT The Bank conducts regular Inspection and Audit of branches to ensure adherence to the systems, procedures and norms prescribed by the Bank and also for identifying the irregularities for prompt rectification. Position of Audit and Inspection as on 31.03.2013 is as follows:

Nature of Control No

Inspection

No of Branches Inspected 147

Revenue Audit

No of Branches Audited 292

Surprise Verification of Cash

No of Branches covered 573

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15. STATUTORY AUDIT In terms of Sub-Section 1 and 2 of Section 19 of the RRB Act, 1976, M/s. George Read & Co, Chartered Accountants, 1,Chowringhee Square, Kolkata 700 001 was appointed as Statutory Central Auditor in addition to 37 nos. of Branch Auditors for the financial year 2012-13. They have audited 554 numbers of Branches and Head Office as per guidelines of NABARD. The Board of Directors conveys heartiest thanks to the Auditors. 16. TECHNOLOGY ADOPTION Business Process Reengineering (BPR): Post CBS implementation the Bank is adopting BPR to redefine the entire Business Process which is currently in vogue to optimize the business growth with the help of technology. The Bank visualizes an environment where the Branches will concentrate only on business growth and best customer services. All the back office works will be shifted to Business Hubs which will take care of the services needed to supplement the Branches . The back office business hubs is expected to be operational by 31th September , 2013. RuPay Cards: As per directives of Department of Financial Services , Government of India , the Bank is on the threshold of issuing Rupay ATM cards . Though these cards will presently be issued to the customers of the bank as ATM cards the same will be customized shortly to act as RuPay ATM cards . The KCC holders will be issued RuPay ATM cards to facilitate easy operation of KCC accounts . Alternate Delivery Channels: Dispensation of cash and other banking services through ATM is under way and expected to be operational by 30th June , 2013. Initially the services will be available through ATMs of Sponsor Bank . However the Bank is actively in the course of installing its own ATMs in selected rural outlets to facilitate the rural clientele . The Bank has already implemented the Business Correspondent ( BC ) model of Financial Inclusion which is totally technology dependent . The BCs are now providing services from remote villages to the rural clientele through hand held devices . It is expected that the number of transactions will take a quantum jump shortly. Personalized Banking Services: With the implementation of CBS the Bank is on the way to reap the benefit of technology and provide personalized banking services to the customers. To begin with personalized CTS standard cheque books will be issued to the customers very soon. Centralized issuance of renewal intimation letter of term deposits is also on the offing

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17. INDUSTRIAL RELATION The Bank is maintaining cordial relationship with the Officers and Employees and the overall industrial relations in the Bank remained peaceful. 18. BOARD OF DIRECTORS The Board has been constituted in accordance with Sec 9 of Regional Rural Bank Act 1976 comprising of the Chairman appointed under sub-section (1) of section 11, and the following other members, viz:-- (a) two directors, who are not officers of the Central Government, State Government, Reserve Bank, National Bank, Sponsor Bank or any other bank, nominated by the Central Government; (b) one director, who is an officer of the Reserve Bank, being nominated by that Bank; (c) one director, who is an officer of the National Bank, being nominated by that Bank; (d) two directors, who are officers of the Sponsor Bank, having been nominated by that Bank; and (e) two directors, who are officers of the concerned State Government, being nominated by that Government. Sri Sourav Das IAS, Principal Secretary, Panchayat and Rural Development Department, Govt of West Bengal has succeeded Sri Trilochan Singh, IAS, Principal Secretary, Panchayate and Rural Development Department, Govt of West Bengal. Srimati Rakhs Mishra, DGM, Reserve Bank of India has been nominated on the Board of the Bank in place of Sri Sudip Malik. The Board acknowledges the valuable guidance rendered by Sri Sudip Malik as Director of the Bank. ACKNOWLEDGEMENT The Board of Directors put on record their gratitude to Government of India, Govt. of West Bengal, Reserve Bank of India, National Bank for Agriculture & Rural Development and United Bank of India for extending their valued guidance and support for proper functioning of the Bank. The Board also expresses their thanks to lakhs of clientele, Well-wishers, Channel partners and also to the District Administrations and Panchayet functionaries for extending their continuous support, cooperation, patronage for overall development of the Bank. The Board of Directors puts on record their appreciation to all categories of Officers and Staff for providing better need-based customer service and showing dedications to uplift the cause of the Bank as well as rural masses. For and on behalf of

Dated: 11.06.2013 Board of Directors Place: Berhampore, Murshidabad (SHRI UMESH CHANDRA) CHAIRMAN

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BANGIYA GRAMIN VIKASH BANK

HEAD OFFICE

PERFORMANCE OF THE BANK DURING THE LAST THREE YEARS AT A GLANCE

(Amt in Rs lakh)

KEY PERFORMANCE INDICATORS 2010-2011 2011-2012 2012-2013

1 No. of Districts coveredNo. of Districts coveredNo. of Districts coveredNo. of Districts covered 11 11 11

2 No. of BranchesNo. of BranchesNo. of BranchesNo. of Branches 552 573 574

a) Rural 473 482 483

b) Semi-Urban 62 68 68

c) Urban 17 23 23

d) Metropolitan 0 0 0

3 Total No. of Employees Total No. of Employees Total No. of Employees Total No. of Employees 2982 2882 2793

Of which No. of Officers 1226 1197 1128

4 Total BusinessTotal BusinessTotal BusinessTotal Business 885392 1015337 1157431

5 ToTal DepositToTal DepositToTal DepositToTal Deposit 598954 667986 764199

a) Current Deposit 15974 21489 20315

b) Savings Deposit 337543 360108 401405

c) Term Deposit 245438 286389 342479

6 BorrowingBorrowingBorrowingBorrowings a)Drawns a)Drawns a)Drawns a)Drawn 15959 29000 51600

b)Outstanding 22692 34816 64553

7 Total ADVANCETotal ADVANCETotal ADVANCETotal ADVANCE 286438 347351 393231

i) AgrI & Allied Activities 114143 148462 172839

ii) Micro & Small Enterprise 78887 84854 103270

iii) Other priority Sector 45356 59466 61966

iv) Total Priority sector advance 238386 292782 338075

v) Non-Priority Sector 48052 54569 55156

8 CD RatioCD RatioCD RatioCD Ratio 47.82 52.00 51.46

9 InvestmentInvestmentInvestmentInvestment 292041 315979 424964

A)SLR 185336 181608 174772

B)Non-SLR 106705 134371 250192

10 ID RatioID RatioID RatioID Ratio 48.66 47.30 55.61

11 Average DepositAverage DepositAverage DepositAverage Deposit 552130 624203 710157

12 Average BorrowingsAverage BorrowingsAverage BorrowingsAverage Borrowings 20619 24790 30920

13 Average AdvanceAverage AdvanceAverage AdvanceAverage Advance 243380 308349 368281

14 Average InvestmentAverage InvestmentAverage InvestmentAverage Investment 301709 309672 362403

15

15.1 Productivity Per Branch 1603.97 1771.97 2016.43

15.2 Productivity Per Employee 296.97 352.30 414.40

15.3 Profitability Per Employee 0.61 0.69 1.13

16 ASSETASSETASSETASSET CLASSIFICATIONCLASSIFICATIONCLASSIFICATIONCLASSIFICATION

21

a) Standard 270354 329870 363339

b) Sub-Standard 3280 4924 18109

c) Doubtful 12313 12183 11675

d) Loss 490 374 108

TotaL NPA 16083 17481 29892

TOTAL ADVANCE 286438 347351 393231

17 Standard Assets as % oStandard Assets as % oStandard Assets as % oStandard Assets as % of Gross Loans & f Gross Loans & f Gross Loans & f Gross Loans &

Advances Advances Advances Advances 94.39 94.97 92.40

a) gross npa (%)a) gross npa (%)a) gross npa (%)a) gross npa (%) 5.61 5.03 7.60

b) net npa (%)b) net npa (%)b) net npa (%)b) net npa (%) 2.95 2.54 4.97

PROFITABILITY ANALYSISPROFITABILITY ANALYSISPROFITABILITY ANALYSISPROFITABILITY ANALYSIS

18 Interest onInterest onInterest onInterest on

a) Loans & Advances 24759 33131 40019

b) Investment 21403 22618 23208

C) Others (IBPC Interest) 8912

Other Income 5779 5784 11440

19 Total IncomeTotal IncomeTotal IncomeTotal Income 51941 61533 83579

20 Interest paid onInterest paid onInterest paid onInterest paid on

a) Deposit 28354 33864 42379

b) Borrowings 1246 1322 1933

C) Others (IBPC Interest) 8303

21 Establishment ExpensesEstablishment ExpensesEstablishment ExpensesEstablishment Expenses 16214 16675 17283

22 Other Operating expensesOther Operating expensesOther Operating expensesOther Operating expenses 2155 5056 4466

23 Provision made during the yearProvision made during the yearProvision made during the yearProvision made during the year 2138 2624 4259

a) Against NPA -493 1124 2569

b) Other Provisions 1832 601 2690

C) Provision for tax 799 899 1787

24 Total ExpenditureTotal ExpenditureTotal ExpenditureTotal Expenditure 50107 59541 80410

25 operating profitoperating profitoperating profitoperating profit 3972 4616 9214

26 A) Profit/Loss before TaxA) Profit/Loss before TaxA) Profit/Loss before TaxA) Profit/Loss before Tax 2633 2891 4956

B) Profit/loss after taxB) Profit/loss after taxB) Profit/loss after taxB) Profit/loss after tax 1834 1992 3169

C) Accumulated loss 31543 29551 26382

OTHER INFORMATIONOTHER INFORMATIONOTHER INFORMATIONOTHER INFORMATION

27 Share capital 500 500 500

Share Capital deposit received 37380.22 37380.22 63880.22

Total capital 37880.22 37880.22 64380.22

28 Net WorthNet WorthNet WorthNet Worth 7599 9050 37998.22

29 CRARCRARCRARCRAR 2.02 3.09 9.55

30 Financial RatiosFinancial RatiosFinancial RatiosFinancial Ratios

A. Average Working Fund 577134 657323 765951

i) Financial Return 8.00 8.48 9.42

ii) Financial Cost 5.13 5.35 6.87

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iii) Financial Margin(I - ii) 2.87 3.13 2.55

iv) Operating Cost 3.18 3.38 2.84

v) Operating Margin (iii - iv) -0.31 -0.25 -0.29

vi) Misc. Income 1.00 0.88 1.49

vii) Operating Profit (v - vi) 0.69 0.63 1.20

viii) Risk Cost 0.37 0.19 0.56

ix) Net Margin (vii - viii) 0.32 0.44 0.64

31 Key RatiosKey RatiosKey RatiosKey Ratios

Cost of DepositCost of DepositCost of DepositCost of Deposit 5.14 5.43 5.97

Cost of BorrowingsCost of BorrowingsCost of BorrowingsCost of Borrowings 6.04 5.33 6.25

Yield on AdvanceYield on AdvanceYield on AdvanceYield on Advance 10.17 10.74 10.87

Yield on InvestmentYield on InvestmentYield on InvestmentYield on Investment 7.09 7.34 8.62

Cost to Income RatioCost to Income RatioCost to Income RatioCost to Income Ratio 43.01 42.82 37.04

RETURN ON ASSETSRETURN ON ASSETSRETURN ON ASSETSRETURN ON ASSETS 0.30 0.37 0.37