ANNUAL REPORT J 201 - 16 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA Highlights Portfolio Size Net Worth T Crore T core 70000 - 65632 120000 61271 10B36 60000 - 56060 5534310 6000010000 9126 50000- 800 - 7991 7046 40000- 6000 30000 4 4000 200002 2000 480 0 0 1991 2013 2014 2015 2016 1991 2013 2014 2015 2016 ZMf31 fw4 8M31 qr As at March 31 As at March 31 3nIW-rW 3INi E VrIM Uf Incoanit Prsofrfrith Income & Profit Standard Assets & Net NPAs Percent 60005401 5808 5741 578100 55 99.22 99.27 5000- 90 80- 4000- 70- 3000 6 2000- 40 1118 1417 1177 30 1000- 20 425 10 0.53 .45 078 .73 0 36 0.4 1991 2013 2014 2015 2016 2013 2014 2015 2016 F 3TRWw3vN (%) aftaff Tft ) Income Profit Standard Assets (%) Net NPAs (%) 31 ef ia1* R Z= 31 Md During the year ended March 31 As at March 31 Annual Report 2015416 ii 1.4--eq 3dW UI yRRM3 , 1989 um Report of the Board of Directors for the year 30(5)J5 31 iR 31 mT4, 2016t*1tWM 4 IfåUT4 ended March 31, 2016 submitted to the Central Nåkio#w9T ,216äGovernnent on July 19, 2016 in terms of Section 30 (5) of the Small Industries Development Bank of India Act, 1989. Conent IhT W Letter of Transmittal NkI-41 Board of Directors Rå Td & if9K d Committees of Directors Wfir I54 k4 Progress at a Glance Yfif WiW< 9k921c5 W CMD's Statement å Tf Directors' Report 3IdWdiT 3* l TI 3WT - Economy and Micro, Small and Medium Enterprises - Performance and Outlook W1U1T ~I U Strategic Business Initiatives T TI TiM Overall Business Operations fÈ#1 WNWFP~T 1~ aft Financial Inclusion and Sustainable Growth tjelwi IM T ,I Impact of SIDBI's Assistance WiPiff f 341TRFT Management and Corporate Govemance feltà d W1BT w) ;ä;m 0KM9 l1 Subsidiaries and Associate Organisations of SIDBI WF-i112 r-toiT Balance Sheet & Statement of Accounts aI T 3Fä5fÍ?I WF-+1 3V Audited Balance Sheet along with Profit and lW#It1?-GIdT i1T -Ad 1 5dT6fh T Loss Account and Cash Flow Statement of SIDBI (#ÑT I)(Appendix -I1) ftrÅ 39~ L3-T 5T6TI) 1 WtSWf TI3? d5 Consolidated Balance Sheet along with Profit and Loss ý1 T 1 QF-tT- 3Û1 9f11-61 lT iUT EM 9415 ~ Account and Cash Flow Statement of SIDBI including fRUI (4i~ - 11) its associates and subsidiaries (Appendix - Il) -f Aaawi r2015-16 19n, 2016 July 19, 2016 The Secretary, Ministry of Finance, Government of India, "Kff iiw New Delhi. Dear Sir, Annual Accounts and Report of the Board on 4Y f4ft Tw4 2015-16 i5R-W ##t Wft5 the working of SIDBI - FY 2015-16 In accordance with the Provisions of Section 30 (5) of the Small Industries Development 4Mg 3&f q 19Bank of India Act, 1989, I forward herewith the 30(5) k3 1ctiF 5 31la 4 N"%%cw 4-tI following documents: (1) Copy of Annual Accounts of Small (1) 31 IT4 2016 I W *Ef -C14n tMKf Industries Development Bank of India for the year ended March 31, 2016 and (2) A copy of the Report of the Board on the (2) 31 ITT 2016 I W working of Small Industries Development -~ *5 ~tBank of India during the year ended March ~Is tgLtP 31, 2016. Yours faithfully, nd. rftdrA) (Dr. Kshatrapati Shivaji) 3ftT L4 y4tr Nav Chairman & Managing Director iii-o 1 Po: End.: as above Aual Report 2015r6 Dr. Kshatrapati Shivaji Shri Aiay Kumar Kapur Shri Manoj Mittal Shri Satyananda Mishra Shri Surendra Nath Tripathi Shri J Chandrasekaran Shri Pankaj lain 4 eAA fereF 4 u.sfem 4qå faa ivers 4 ær<. wrqáræs Shri S.K.V. Srinivasan Shri 5. Hariharan SmiL Smita Bharadwaj Shri F. Rnachandran mi 2015-16 *r w #~iwtgaf (aMq frairc a wr ø%T#Tre) (a~r 02, 1990 - ft 18, 1993) (3ikT 02, 1990 - i«r4 03, 1995) Late Shri S S Nadka"i (Chairnmn) Shri R S Agrawal (Managing Direetor) (April02, 1990- September 18, 1993) (April 02, 1990-March 03, 1995) (ft"It02, 1993 - "eår 30, 1998) ( 408, 1995 - ¶W 20, 1995) Dr Sailndra Narain (Managing Dirctor) Shri SE Khan (Chairman) Shri K R Pillai (Managing Director) (W1W 03, 1995 - i4 26, 2000) (December 02, 1993 - June 30, 1998) (March 08, 1995 - July 20, 1995) (~wi « ar$#"r) (Chair&an & Director) (qr427, 2000 - W31, 2000) (11I< 01, 1998 - i 26, 2000) (aFiw 01, 2000 - WFrqt 30, 2001) Shri O P Gupta (Chairman) Shri S S Kohli (Chairman & Managing Director) (July 01, 1998 - March 26, 2000) (August 01, 2000 - January 30, 2001) Annual Report 2015-16 r 31, 2001 - er 28, 2003) (KT 16, 2003 - f at 08, 2004) Shri P B Nimbalkar (Chairman & Managing Director) Shri V K Chopra (Chairman & Managing Director) (January 31, 2001 -February 28,2003) (July 16, 2003 - December 08, 2004) ( r 30, 2004 - f~ 30, 2006) (gt 11, 2007 - TM 08, 2010) (30* 04, 2011 - RqT 08, 2013) Shi N Balasubramanian Shri R. M. Malla Shri Sushil Kumar Muhnot (Chairman & Managing Director) (Chairan & Managing Director) (Chairman & Managing Director) (December 30,2004 - September 30,2006) (July 11, 2007 - Jully 08,2010) (April 04, 2011 -November 08, 2013) (3R|y 23, 2006 - 12, 2007) (pa22> 2013 -n4 I11, 2014) (402, 2015 11anf 0 (tIkt 26, 2010 - 3TM 03, 2011) Shri N. Mii(Deputy Maaging Diretor) Dr Khatipati Shvi(Chairn & Managing Shi Rakes Rewri(Dputy Mnaging Director) (November 22,2013 -Marc 11, 2014) Dieelar)(March O2 2015- till date) (0cober 23,2006- Jdy 12,2007) (Juy26,2010-April03,2011) - U1~Man*P 2015-16 fftmmdftg n f Executive Committee tm~nfä ftrAt xMer Dr. Kshatrapati Shivaji, Chairmian Shri Ajay Kumar Kapur Shri Manoj Mittal Shri J. Chandrasekaran Shri 5. Hariharan Shri Satyananda Mishra Audit Committee k ;Shri Satyananda Mishra, Chairman Shri Ajay Kumar Kapur Shri Manoj Mittal Shri Pankaj Jain Shri S.K.V. Srinivasan Shri S. Hariharan Shri R. Ramachandran Risk Management Committee Shri R. Ramachandran, Chairman Shri Ajay Kumar Kapur Shri Manoj Mittal Shri S.K.V. Srinivasan Shri J. Chandrasekaran IM sSpecial Committee to Monitor Large Value Frauds . m å Dr. Kshatrapati Shivaji, Chairman 3 R Shri Ajay Kuar Kapur ff Shri Manoj Mittal t Shiri Pankaj Jain 4 - F rlt Shui S.K.V. Srinivasan r ;Shri J. Chandrasekaran j wc. äS Shri S. Hariharan Annual Report 2015-16 V gIT q aa vAo f0ft Information Technology Strategy Committee 4 tIV4A ffT, 3sW Shri Satyananda Mishra, Chairman )a 3FO PR a5Shri Ajay Kumar Kapur t Rt7ftff Shri Manoj Mittal 4 .t4.4Wf5pw Shri S.K.V. Srinivasan 4ft g% C, (WW fTtftr) Shri Pushpinder Singh (External Expert) WMi Wi Customer Service Committee t. arqft14t RIMA, 3Tt Dr. Kshatrapati Shivaji, Chairman #4mq P r W Shri Ajay Kumar Kapur itT9) ft Shri Manoj Mittal ift-A. UO - Shri J. Chandrasekaran 4t U Shri S. Hariharan 11 TINFi FYW l HR Steering Committee T. &1Mf4E fDIA, 3Wi& Dr. Kshatrapati Shivaji, Chairman i3MrTWw P & Shri Ajay Kumar Kapur itT4h firr Shri Manoj Mittal 4W* Shri Pankaj Jain . zl vms Shri J. Chandrasekaran )fRT14afIT Shri Satyananda Mishra t. ftWT rd (rgfc*wi) Dr. Chitra Rao (External Expert) yt f tT WR Recovery Review Committee C. afmf1A trIA Dr. Kshatrapati Shivaji, Chairman 4 3rw TR ( Shri Ajay Kumar Kapur if4wtRfrrM Shri Manoj Mittal 4 017, Aq Shri Pankaj Jain 4 u.t.A.4f45W Shri S-K.V. Srinivasan 4 3 Shri R. Ramachandran -U M an*P 2015-16 p ~AId Wip mEIT aIlWdif jaE5-d6fÉ1 #q Review Committee on Wilfu defaulters & iIE I iF*It#d Non-cooperative borrowers -GI. emfå ftiT5, 31& Dr. Kshatrapati Shivaji, Chairman s a t" 1 N4T Shri Satyananda Mishra JO 3RIW. W Shri R Ramachandran qifti0R ftftd Remuneration Committee 3 t ik -Shri Pankaj Jain je W¯R6 ,(-[ Shri S. Hariharan k t" ýa NRMT Shri Satyananda Mishra vii Annual Report 201546 Ege irŠ f?rii -r gTr äe-uni To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps i tr ra5R 3RI- F ld- t IJ I the MSME eco-system. (T w / crore) Zr 31 qil As on March 31 1991 2013 2014 2015 2016 WIT%T tIT I Outstanding Portfolio 5176.8 56,059.8 61270.7 55342.6 65632.1 I1 I Capital - si~tii I Authorised 500.0 1,000.0 1,000.0 1,000.0 1,000.0 - WcW I Paid-up 450.0 450.0 450.0 450.0 487.0 311IT uN PiftId i Reserves and Funds 44.9 7,053.3 8,042.3 9329.6 11108.3 rIs 3Mr! (~TW-"T) I Total Income (Net of provisions) 425.1 4,557.6 5186.0 5938.5 5559.5 ~IT Iffr I Net Profit 35.6 837.4 1,118.3 1417.1 1177.5 q r NTttir I Dividend to Shareholders 5.0 112.5 112.5 112.5 94.7 0.7 2.3 2.7 3.8 2.9 Return on Avg. Outstanding Portfolio (%4) ~ ~100 99.47 99.55 99.22 99.27 Standard Assets as percentage of net outstanding portfolio " NW 3T1t Yft;W æW (%) 13.9 28.1 30.75 36.69 29.86 Capital to Risk Assets Ratio (%) -Wft RM414r 2015-16 r 4 2015-16 k %U 46 A-4f ftitf The Board of Directors and the Management 7 g ftr Ra,r 4 g-4 team of SIDBI are privileged to present the 40-KWf ij mFWWf #it 4 Bank's Annual Report for the financial year faf5 4ift i4 2015-16 3i cU 1t f9- 2015-16. It is my pleasure to inform that the year gaFT I ft I d-6 zMl% a flI 2015-16 was quite eventful in terms of a number U II Aof strategic business initiatives taken by your Bank, followed by strong balance sheet growth and business performance and number of WMfWR l awards and accolades to your Bank. Thct !4 2015-16 * TU IT PI ffr W fd An important milestone during FY 2015-16 is 305 t qcFT 311 TrR 425.7% A 3h that the balance-sheet size of your Bank crossed ? Z75,000 ftT 5 TR W 3 j- rf 31im4 the ?75,000 crore mark by registering 25.7% 2016 - 78,478 ! W Wdr iA2015-16 growth to reach T76,478 crore as on March 31, t 4 4 M #gt WtZW I 2016. The Bank also showed strong business 44 2015-16 t OlR TT2 4 75OIT 18.6% growth during FY 2015-16. The total MSME Wv Tm, 3% f 204-15 credit outstanding increased by 18.6% during FY S?655,33 -d2015-16 to T 65,632 crore as against T55,343 crore in FY 2014-15. W IkRPMUITNUH! Abr 3ft Such growth could be possible due to rI RTh f ti~ gg # w? b5451R multifarious functions performed by SIDBI for Annual Report 2015-16 W4'rc w I fkgk k Mf-W rt jW 4 wars the promotion, financing and development of . M f j ithe MSME sector of India. Its 'Credit Plus e_ approach spans to cover not only financing support but also developmental assistance to WM19K 3R fe C D W F4 MSMEs in the areas of advisory services, skill 7iRT * rI # I f -hi' 5ft4* u 14 Vr* development, marketing assistance, cluster ii4A 45 ORRHOR fdevelopment, etc. Its 'SIDBI Plus' approach ea V W t qcovers integrated thrust to MSME sector through its associates and subsidiaries such as, -A I? t r SKF fl-fit* r A ta SIDBI Venture Capital Limited (SVCL) for fW S (Wff "); Z 100 C1Uif ? 5 Tivif)4(' providing Venture Capital (VC) assistance to / flt AT q& *aWO* -*UT it Sgp MSMEs, Credit Guarantee Fund Trust for Micro MC4 %_I&q L and Small Enterprises (CGTMSE) to provide credit guarantee coverage to collateral free / (iM¶turiuqI); 1mthird-party guarantee free loans up to I 100 t"w ftg; #10A ir WW 3ft wMT t3ff 5 lakh, SMERA Ratings Limited (SMERA) for fft#% eynq 8?fAerR 4ft fk; Krg credit rating of MSMEs, India SME Technology * m z m W tA * uServices Limited (ISTSL) for technology advisory and consultancy services, India SME Asset Reconstruction Company Limited (ISARC) for 3i T 5t -n g cmv rft Mfhi speedier resolution of non-performing assets Sp \. gM(NPAs) in MSME sector and Micro Units Development & Refinance Agency (MUDRA) to fund the unfunded, self-employed and small businesses in the country. Thus, through its ki Ar ;:r 4 U 3ft dr Th#dr 3 holistic interventions, SIDBI supplements and complements not only the banks and financial f 3-I institutions, but also the Government of India in their support and programmes to make the Indian economy stronger and vibrant. qjKft 3TefqqM t5ftW- 31ft \During the recent years, the Government of W -d" WWai1India has come out with various initiatives like -4 \ w # &-# mfT , Make in India, Start-up India, Stand-up India, Pradhan Mantri Jan-Dhan Yojana (PMJDY), Pradhan Mantri Mudra YoJana (PMMY), Digital O .*R 0t7t3 WU 5a~I 7T , #PO ThT T , India, Skill India, Zero Effect Zero Defect, etc., ftf)ffT k ;5M 0ffg TZ Mft I -6 1 - to boost the Indian economic growth in a more 3ft WW 7ft -4 PHIFR 3 3fb fi inclusive and sustainable manner. Your Bank is -f N M r2015-16 * * fT 4 3flRO5 t5 Tf WMR* t rWT continuously striving to support the j A4 34 t 4 Government of India in taking our nation and SaV EMSMEs, in particular, to greater heights. In that direction, your Bank has come out with a number of business initiatives as mentioned below: W 1,000 5 t "fbiT4t*1 ET'fkfift1 . Setting up a ?1,000 crore 'SIDBI Make in WT91, Trft ¶1dr4o Ft 25 &t at tft India' fund to make MSMEs a world-class aKA V,V-HVE*r fi!F -*t ThfdifJ4u manufacturing hub with focus on 25 sectors q# wThrm TT-i w ft4 Aft5 aWu %fti of the economy. Under this Fund, p t, ~ concessional finance is provided to identified MSME sectors. * T10,000 r Mr fIt * Creating a T10,000 crore 'SIDBI Make in ?f Og Tg15W \qffff Lkhff A1 umr U1~India Soft Loan Fund for Micro, Small & (Fqw) IF Uft lT5 Th I-IRMt Medium Enterprises (SMILE)' to make to ig d3je A available soft loan to MSMEs, in the nature %q W k LiT 3 MWil of quasi-equity to meet the required debt- equity ratio and term loan on relatively soft w m3terms for establishment of new MSMEs, as Wf Walso for pursuing opportunities for growth for existing MSMEs. * 1&-Xg #f-qT't ' il 0 04 4 * In order to foster smooth implementation of t 3tw t W 4 www.standupmitra.in wiwH "Stand-Up India" Scheme, SIDBI developed 4t -qa t a fcOWt#IrW# 310T4 4 M a web-portal "www.standupmitra.in" which is -d-4 - o v r designed to obtain application forms, provide information, enable registrations, provide links for handholding tracking and monitoring. This will enable our banking system to fulfil the intended objective of NJRftcW 319alA 3UtRW4 $fkW U5; # aWT M5 providing bank loans between T 10 lakh W uIT rw ZWA 3WR T1 ?I g and T 1 crore to at least one Scheduled Caste ft?10 T I * # 1 4 (SC) or Scheduled Tribe (ST) borrower and #tuf twliw w4# Rt # at least one woman borrower per bank II W t W 1.07 T i 3Tft branch for setting up a green-field enterprise. This portal, with more than 1.07 lakh bank branches and 17,000 handholding agencies, is functioning as a virtual loan Annual Report 2015-16 Wt w w irA wiftf #af t- 4 4- market place offering pre-sanction match- #FQiR ftg wi i making services for loan seekers. 3WT WTMM n f 5f4r * Economics history indicates that any new 34 TO WhIM k 4 wave of economic growth is preceded by * M4 R M 4 t Wdisruptive innovations led by start-ups. 9-45 Indian economy is poised for such an innovation-based structural progression, triggered by the 'Start-up India' programme #f tr RFil WW t 1 of the Government of India. To help our Fq*I *14jV_*3L14jf MSME start-ups, your Bank created a T 2,000 3lZ 2,000 t frItU R crore India Aspiration Fund (IAF) to be ( EfFfT A M 1 3?W 1 # T utilized as a Fund of Funds for making f4 qiW fev fI aI M i 45r 4 Wer fibm investments in Venture Capital Funds ur t ., t, rw ft: uq 4et 4m I (VCFs) which would, in turn, make W t i zw PfffT* *a w4o i k iT investments in MSMEs to the extent of twice 3?M ft * Wg-fftr 45 50% 0r0 (A the commitment of SIDBI or 50% of the corpus of the VCF, whichever is more. f 4 www.sidbistartupmitra. in qimrpafF--rrW * SIDBI also prepared an on-line platform tA$Q4 *ft %M #, , %fr y q1t 3Ug4 a "www.sidbistartupmitrain", which enables fWf-MT&, Fiqhrd, 7j4-r , L start-up entrepreneurs to get connected with 4n4 g tvarious stake-holders namely incubators, mentors, angel networks, venture capital funds, etc. vt 3h 3 t * k Am www.venturefund. * To take it further, a new website "www. sidbi.in rr r f of ra r , venturefund.sidbi.in" was developed for -a 1 t MW t ADirect Risk Capital assistance to MSMEs in w 3ft jm w t 4 the form of sub-debt and equity assistance through Venture Capital Funds. mit-31ql f Z 10,000 (f V fi (tF * Subsequent to the announcement by * M4t 4 9f 4 T 2,500 WY) ff#ff ft) Hon'ble Prime Minister on January 16, 2016 21 i5 Wff 4 FF1 44 R 16:3T4 at New Delhi to create a fund corpus of 2016A f fkA T t WT? 16 < T 10,000 crore (Z25 00 crore every year for a period of four years) for start-ups, an wim ci 4 ft 42016 i 4k ?500amount of 7'500 crore has since been received in FY 2016 as budgetary support. xii -f Aaawi r2015-16 O 4 *qu}-ARl, afUT 3& ahty m Under "A Scheme for Promotion of JQcl il*41 T31qT- "3T TRR RTh - Innovation, Rural Industry and WqT#9R Li 3 . Entrepreneurship (ASPIRE)" Fund of f4f 3tfY T 60 a r94 * ITEi*oer-Ministry of MSME, T 60 crore was allocated and disbursed to SIDBI for managing the fft WT th 3UI w)5 fdF-W 1Wff fund for investing in VCs with investment " 3ftx *WF 3 t focus on start-up and early stage enterprises %10 A Trr Venture Capital, Consulting Securitsation (h#t*) p}I5,RTFa *iiT 42, 00 X 3 l and Venture Capital Action Plan (VCAP), zhzf ft* 4)r * W f r flr,W7 W4, cateig to more than 42000 cUents. The N* q WVCAP is helping attract new private sector W )v jinvestors, create larger, later-stage funds and ultimately, increase private sector venture ffT&W 1 3?r T capital investments to create jobs and long T T T 3 T # A 7T I 1M UN term growth. Study found that BDC clients &qpY 4#&a f q; fW #f3 3 3qU)V who used both fnancing and consulting fTT 3W 39 q; WMV 4* q7W t 59% j services, had 59% higher revenue growth in WT7f r 9ff / their fifth year of business. Wft J-#r Mgflr Wgqftt q f 9 4 #q The thrust of BDC is to promote ,,A, 47ft W ,WD i -o f i M entrepreneurship. BDC has developed a p5zjT g ft#1~ , unique annual Index of New Entrepreneurial Activity ("the BDC Index") which measures ar =T 0 mgrm bt ftr Mq O-rr7 Pfr 4*qVTf'ft34)the rate at which Canadians are launching new job-creating businesses nationaly, ETTTT i' l fregionaly and in various subregions. The T 1 T r s if wPrTQAFRT BDC Ildex is calculated by measuring the 34W #4iE17 3rreFT * 3#1Zr q? #Iff number of people who became independent a f 4 31q # Rf7T wWf WV # egg workers with employees in the past 12 months as a proportion of the total labour force. Annual Report 2015-16 Atft iffI 7The Montreal Group MR?#W 2012 # ft Okqm TV t ) t M1/T In September, 2012, The Montreal Group ar7/ wT Vw T7T-P1Pt/ flft #7eW ?73# (7MG) was estabhshed as a global forum of Nw RV ef O w r fr f# state-supported financial development R # tTr#P- institutions to encourage exchange of ideas 7T TT and best practices amongst the member the DFIs. The original seven founding members t# &TOevvyl 7(OrmIt7ff M WhaT u are: BDC (Canada), BNDES (Brazil), China &r 4fwm Mfdw*)% Mmem *W f4m Development Bank, Nafnsa (Mexico), OSEO (VWi) (owI (France), SIDBI (India) and Vnesheconombank (Russia). tfraq3fW Wrs f 4/ qt aiwrgq r TMG fosters peer group exchanges, identify & fary,4)clul &Wq f best practices and innovative solutions on ?h# #qj5 a7qw7q7 4fr S=rr 3fW77Wf 3rfa issues/products such as loan guarantees, i Anancing intangible projects consulting services global business matching or governance, to name but a few. Members are 3 4 f supported to improve internal operational # f it, qtpTaN 3ge 4fR / 3710U5 efflency, rene strategic planning and policy ff XW 3 Mr# 3i77V7gV?Zr qf*4r formulation respond to stakeholders and * sIRA f W&7z# rchanging economic conditions, beneft from international perspectives, etc 4t 2016/17 & fk eWa#* & iz~)r 37T For 2016/2017 members settled on a work WpWu gV , fPOW fAfM M f 3rr plan recommending investigating the fcfiTm-17E7T--6 iRr1qW zt~following topics: Green Financing Innovative gM - Products and Services and Online Services and Digitalization. 2015-16 ÈÊ:¯feiåRNCR, jj)agdtågServices and (iii) Risk Management. r (iii) d irt I r 5 Arranged by SIDBI, the principal DFI engaged in MSME sector financing and 3 f W M development in India, the participants from 8 DFIs around the world had held discussions on issues of relevance and m iTÅAM w zrz &J~ Ichallenges pertaining to MSME sector. h o al ý-ou I11 12 3ýýa 2016 2ý- Š< W gill ýk t,5E€ 311 dN È)àÉ& Rb~ SIDBI organised The mantreal Group (TMG) Meeting in Mumbal during Aprii 11-13, 2016. 564 Financial Inclusi n and Sustainable Growlh waw ~ ~ nFOP, rfe -*ww -w.rrM w%a 2; SIDBI bagged 'Mnroanance IndiaAwards - 2015" ar~aie by Aen Ast under teUMiofinanceIndia -Corlntuionda TfR f4mr fTh fT trts (3*) > An MoU was executed with NEDFi in W Mi q4 2012 4 Md MrI wr March 2012 for providing various Annual Report 2015-16 Mf f Tr JT Psw r wr, f iF mm;T Vq, financial and developmental services M 4 - R?ZU4 iWf f, 31cr%x ;iFW indcuding MSME Finance, Micro f4ftftt T 4 %EMkqqR3 tV 3Wqaa finance and also for undertaking amm v 4 fNft d 4*a * M various P & D activities in NER. u%a5flM 3r%d% talfNa Mvu Under this arrangement, Credit "am 3it qi Counseling Centres / Business t A N % W fFacilitation Centres (BFCs) were also opened. Presently, there are 8 (eight) such centres operational in NER. The BFCs include Shillong (Meghalaya), Silchar (Assam), Aizawl (Mizoram), 31*31 mft3h.Kq), *&m (RAw), rGangtok (Sikkim), Agartala (Tripura), 331MI ft\ ) 3ftm (I ), Kohima (Nagaland), Itanagar CZFPR (3RnUffr WrT) LR ' (Arunachal Pradesh) and Imphal (*p Wfth 1 w4wI f 1TT; (Manipur). Apart from above BFCs, l t r affimsTva 4 #i& WrfMQ an Entrepreneurs' Corner has been set 4 -M*t *RV iir Ad fa5Wu r I up in NEDFi Office at Guwahati. U4 T& K 4 377 3 ft 3Tufcr > The Bank has supported more than fdisW1 3R& g WT 377 EDPs in NER benefitting over f5t,fl 15,556 3ffbs 3itT- 3U* 15,556 budding entrepreneurs, 104 ?1TS1fNa W104 MVV I k5M skill development programmes W44(wYT* z 314Nff PW (vocational) benefitting over 2983 1, fR 2983 t MROd$ bqPT i persons and almost 115 exhibitions / iM 4t k 3 M 41pTil 115 'Qr&f / seminars / workshops benefitting over 0191KORN1100i *15,287 participants. 15,287 * 3f5m%At d I%ftl 1 U> 4VO 63r #5iF*W TOA 49 > 49 Cluster Development Programmes 7M-WV %5W ZNtdPA -t WMiT (CDPs) in different states of NER # %4 ft Wnt * j4ft pt covering activities like bamboo mat C,"DC4, rEjWt4 T-, Odft, 4f * weaving, carpet weaving handicrafts, WR, 4i4 te fth WW lir4 ff handloom weaving, pottery, bee silA iM ffl f 1 ff 3-Frgj keeping, making fish feed products, %lWr 9zrY -4 MrW 7,000 WR- etc. have been supported by SIDBI ?MrP rIgl benefitting around 7,000 artisans. - wMaMIR 2015-16 > ftgk W 4 MT a MR > The Bank has so far conducted about 156 I M-i-IftRA 3WZp 154M 156 Skill cum Technology (fo) MWa f%R cr)40r 314cl AT Upgradation Programmes (STUPs) t fFl W 3tf-V &W t 4867 -4 benefitting over 4,867 participants in 3ftiI5 ~ %1Nku I Ithe entire NER. ft t5 -|w 3u #; it t > Under the Bank's Micro Enterprises 3Ift, Td'MK t 4 31SW 24 fWf Promotion Programme (MEPP), 24 i# ft f 5iT Tg #, If\4 fdWA districts in NER have been covered so 2016 4 3RT t 4 M )fA J far including the MEPP launched for ¶ffw IT Tq M r WqT T4i Kamrup district in Assam in FY 2016. " to #1 1f qw 3IF#f 4f i04 These MEPPs have resulted in 5 3FwRT MT1 2460 O04 W #4r*f promotion of about 2,460 units. 74rlAT* fiffi t tisiWmT WI Tr Imacat af SleBis Assistance C1Kt4 4# wfl ~wÉ4r4-1ftuewaMui Shi Narendra Modt Hon'ble Prima Minister launching e-ri,ws at Vanasi. I- t fliM fW 01 0 &Shn Karaj ~ Hon-e - "ECabinet Minser, Min. of Mieo, Small & Medium Enterpes launching e-rickshaws at Ludnow. 25* LCI]U ... ....... .. .. .. .. .. .. ... .. .... ... .. .. .. -f Aaawi r2015-16 q1W. M 3ft qMq 3*4 f t;Fij isW f quwI SIDBI as the principal financial institution for k T4 #ftg# IT q, -eig 3k tq j apTj q MSMEs, always strives for promotion, financing %A m quiW fd;E r4i fku ;WW fK t I and development of the MSME sector. Its ,fq 3 H R initiatives and actions have impacted the MSME W 39fVI Isector in its economic, social and environmental spheres. ag1fft PWi Economic Impact * wif 2016 * W% ?r5 ;i 4.50 ?IRI m t * More than 350 lakh persons in the MSME 4 * wt fft wmiT * , - 31k sector have been benefitted from SIDBI's 3fJ O 4 350 Yw 4 f 4 3MUr A cumulative financial assistance of T 4.50 lakh crore as at the end of March 2016. * fF fTmP RM , t4 tT f (q3qR), 3iW * Many local MFIs were supported and RTfffMr, 3 tw, ibi, isd, AdfUR , strengthened in underserved areas, viz. qftW 0North Eastern Region (NER), and in States S4 Af M q like Rajasthan, Uttar Pradesh, Madhya INa6 14 I Yift $ W cISf ff WPradesh, Uttarakhand, Bihar, West Bengal, fjR4f4* 3ftRR 4mg-4, q'W%frJharkhand, Odisha, Chhattisgarh, etc., - TXW4W-dA 4 FIZIa which helped the poor, mostly women to # 3 PI access micro credit from MFIs. It also WO# !F s r 31 3fR 3ROFd " -4 %ftwidened the arena of financial inclusion in kSTA~ i W & alo t W I these unserved and underserved areas. WAifAq VM Environmental Impact 1f- %5W Recognizing the need for environmentally friendly development of MSME sector, SIDBIs business strategy is to promote energy efficiency i 4)- A a34 Wam (t ) ?!ZTUW i (-) a [EE] and cleaner production (CP) in the MSME wrd 0 * i Tr& -w T rtrcw sector. The impact of SIDBIs sustainable Ui initiatives is mentioned below: N -4 * Savings of 1,100 Million Kilo Watt Hour V 1100 R 1 RA a(MkWh) of electricity and a reduction of kW4 Vf 950 kilo tons (kT) of CO2 annually by 0 ZSIDBI-assisted 6,100 MSMEs which availed, 950 ~fit C t ~4t 31r1, flirA 31 mWif 2016 as on March 31, 2016, an aggregate 3ai arcU xUfTfR 3tM&;f *r WV4 045 assistance of more than ? 5,830 crore for %T T5,830 ZR) r # M fN r TWT 59q promoting Energy Efficiency & Cleaner Production. 76 Annual Report 2015-16 * i ~we V t*) t irrr TWsW m Under the World-Bank project, viz. rl 10 qaq Eg LX4 3Mgf 4 Uf "Financing Energy Efficiency at MSMEs" in t 1 OM 10 MSME clusters, by SIDBI along with # MBureau of Energy Efficiency (BEE), more 3311 nffl Q ; quR 3 0 M* Mld - 3Athan 600 MSMEs implemented energy efficiency measures in their units. It has W u 3 I VUO 1.5 T also resulted in emission reduction of T fft3Tt 31TTW6 a53ict A #* I I about 1.5 million tonnes of CO2. i I t* Under the project, more than 85 Capacity Building and Awareness Programs have been conducted for MSMEs, Industries -;EM 3fThWI4 3F-4R ;i# t 5 t 85 Associations and various other key WMIq# 4 f3fTqWf l 4im 311dNf stakeholders on various topics related to M1U91100 IT/ kfFt Ill?rfel 4200 energy efficiency which has outreached to t mftms y - ig more than 4200 participants, including 1100 banking / financial professionals. * Za -6i WM 31 m' 3ff'gD * The Partial Risk Sharing Facility for Energy thM 19 T - M - *at 500 # Efficiency (PRSF) project is expected to 3f a I) ST 3 --111 provide credit guarantee to more than 500 tAaTA 127 MfMi ESCO implemented EE projects which would mobilize financing to the tune of *- USD 127 million. Further, the project is zrg 3WE A a -31T i 'TRT 4S also expected to result in significant energy tifvufllil 1,000 AsoRpa &rg?Oj3W savings to the tune of 1000 GWh and CO2 TE tt r a W F 31 * Zqt 4 emission reduction to the tune of 0.734 0.734 IfT9IZ¶W i1 itt TI million tons. I MSocial Impact * It has been observed from the various studies conducted by SIDBI that TzrT wgmm A P ~~microfinance has helped the poor in * f4fthi t3wA 5 TW # 4 gMT I & M accessing financial services, improving the A MqgfkAa3 3ftiM5 &ft W quality of their life through creation of S*m oalternative additional livelihood opportunities, reducing their dependence on the exploitative informal sources of M t, RIft ft qmf ~u f 4ft AM 4 credit, increased participation in family t ? I4re on 4and business decision making, enhanced ,%a#ON IND g t it qja %A 4 knowledge on financial matters, improved social security, asset status and improvement in health and education parameters. 77 -f N M r2015-16 * 0041 1r4c f5 (9ft) - * Under the ADB-JFPR Project of Supporting 4faT frtR ¶qF fT RIIT Wri Micro entrepreneurship for Women's -r qfRe 7irip i 3dfm M-I A i(Isii Empowerment, Insight Development t 3f Dur tWdWiat fi- WR4 Wg Consulting Group (IDCG) conducted end- (310 A*)!4 3iWT ,iIr fr y, foRA line survey after training of women micro- MiWbf~taA;fl ik Rf q #entrepreneurs who reported the following changes: N 90% of women micro entrepreneurs S Areported increased family income from contribution of their business; 0 314 80% 4 Tiftaiftfi fT!IbO T 4 a 80% of them reported increased NI0 ifT ;a I participation in family decision . T 4 75% 4 3A 4 arflr #4t Pjft making; # 75% of them reported increased participation in decisions regarding a 34 t 75% 4 RTRINVUM 3fJT 3 ft# 4% their business; V R #I . 75% of them felt improved social N 65% 4 hdtrrI aur iit It 'ri l 4 security and asset status; ftifafft) r %qI . 65% reported improved mobility of N 77% lftmg NT 50,000 -QT MROu r1 women micro entrepreneurs; S74 a * 77% of women could access easier credit of T?50,000 or more; The women micro-entrepreneurs also presented a vibrant social-economic profile; * 92%fl 3fbt VT 72% I * 92% are married and nearly 72% live F%; 4 Iin nuclear families. * 11% AkffF WR 26% U- 1- * 11% are illiterate while 26% have fty It*A I completed high-school. * 69% 394 WMWt* IfM 9 3k 23% * 69% own their businesses and 23% * 69% 3contribute all the household income. * More than 12,500 MSMEs had benefitted in terms of financial 5 0 t A~t Z13k ~literacy, awareness about Government t55 t 4 TMTTi 2 fkf schemes and credit linkages through RWi1T t WM12500 33w zwifft SIDBI's MSME Advisory Centres, Mi LJT4RW:R 3Ep 1t1 INinT f manned by Knowledge Partners. * RAg t;wq uf* Th 1 mw R141( wTrm * SIDBI's promotional and * 80,000 -4fMrW 39* * RT# developmental support helped in i t wim 1.5 MW fl 4 m1 setting up of about 80,000 enterprises, .14M U4 W, ffE L4 HWit 3 providing employment to about 1.5 2.3 MHi * A*l? MIA lakh people and benefitting more than 2.3 lakh people in the MSME sector. SrÆr E f TtR 3$fN1TR Mnaementm and Cerperate Gnvernancc Dr. Kshatrapati Shivaji, CMD, SIDBI receiving the second prize under 'Rajbhasha Keerti Puraskar Yojana' in the banks' category for a consecutive third time from Shri Pranab Mukherjee, Hon'ble President of India. fåfricf 4 "'fW W 3r W å tr5 i f 3 I qft-7-Tak@ey Å fi 'a5iiVýR3 r k *r T~ fhslisWrg ftf" f4M ed, ired 8r nfKm, f~nt SIDBI also bagged two cnsolation prize for regions "A" and "B" and a econd priw for region "C" in RBI- Rajbhasha Shield Compeition. Dr. Kshatrapati Shva CMD, SIDBI receiving te fran Shri Raghuram R*rt, RBI Governor. .sa m a n ............ ...... .......... -f N M r2015-16 %4 R Mf tIFIWTR T rq{ SIDBI has been professing good corporate T g ," M 3A t governance practices as well as attempting to * Tq - NqW kreplicate them in the MSME sector and the institutions it deals with. Being the apex institution for addressing the needs of the MSME eco-system, the Bank has been attending to the key priorities and pressing requirements MR fT r 1 3ul i 't 4 ff39 in the MSME sector. The highlights of SIDBIs 3* Iun t -e w % lrtR wrd good corporate governance system are enumerated in the following paragraphs: T*i 4iWVIto- i * 1Rfi Board of Directors / Committees of the Board qi q rg f ir ftf fi w IRAw 1989 4 w The Small Industries Development Bank of WdRh* t D ag WyrUp t1 3*_ India Act, 1989 provides for a fifteen-member Nao wf -m Board of Directors. Out of these, eight Directors 1 ¶RI& ut ~are appointed / nominated by the Central Government comprising Chairman and Managing Director (CMD), two Whole Time % tft t M hip fAff) tq Lr# %Directors, two Government officials and three wft g, (fP fdr ROm w RT 3R4T W3 ift t experts (including one from State Financial %rUr iwtnM re -4 w ti 3rW Tq ) Corporation) having special knowledge of or * W NpVIy 4 t -& t Nh & 31 an professional experience in matters useful to the S , l RBank. Out of the remaining seven Directors, one each is nominated by three largest shareholders amongst IDBI, Public Sector Banks, Insurance Companies and other institutions owned or \9140NO q)(4-MK4 TfUT 3144 ; 0&controlled by the Central Government and other -q4 7 fIs WTR RW T agI M UMf5 4* four are to be elected by the public shareholders ,Fq - Raq A8cp 3*4 *jCq)N -g tF t or alternatively, can be co-opted by the Board T*RR 4 Nma m gu 4 t MwO - izisq-Na until assumption of charge by the elected f$Wc ti T 31 WId 2016, Mim *if * =Ta Directors. The Board has co-opted two Directors for the time being. The Board, as on March 31, h ~ 2016, comprised eleven Directors, including CMD and two Whole Time Directors. m%r4f~fr 1989 tmW 6(i)) fAff In exercise of the powers conferred by Section i W 3q?MI* 4F aWT A Rq-t 22 6(1)(b) of the SIDBI Act, 1989, the Central R@t 2016 & 3ft IT 4i AN # 3J TR( Government vide its notifications dated January w7 meift WRft ATm * ffr* w 3f ;mm 22, 2016, appointed Shri Ajay Kumar Kapur and Annual Report 2015-16 Mvzo %cff Thf4i w4 rAu gw axgc m Shri Manoj Mittal as Deputy Managing R4i %rf it 22 7iR# 2016 ib 3q fdi PaTR Directors (DMDs) of SIDBL S/Shri Ajay Kumar SiR3W WI Kapur and Manoj Mittal took charge as DMDs on January 22, 2016. XIrAs F * VRT 6(1)(T) 5 24?f TIW? The Government of India, vide its notification Wff; MF 17 Rtf, 2015 dated April 17, 2015, nominated the fhifT WLTIS (TTH9) i5 8 30f, 2015 qr W Development Commissioner (MSME) as a t M o ff Director on the Board of SIDBI w.e.f. April 8, 2015 under Section 6(1)(c) of the SIDBI Act. Accordingly, Shri Amarendra Sinha, Additional (MURf) 8 3r 2015 AF M rlio #i 4 VOWil Secretary & DC (MSME) joined the Board w.e.f. g9l aaqvm 01 3rqi 2015 3RM Ifft[ t April 8, 2015. Subsequently, Shri Surendra Nath %s crrp (UTq ) Ni p" 4 i q 4 Tripathi on taking charge as Additional qM % 4 * S f % t W r Secretary & DC (MSME) on October 1, 2015, was t #inducted on the Board of the Bank in place of Shri Amarendra Sinha. 3ftgkThm, 1989 FWI 6(1)(IT) 4 fTfhir In exercise of the powers conferred by Section ;t3qtftro W3*rb7WK 4 MqW 1 6(1)(c) of the SIDBI Act, 1989 the Central TcF 2016 3 AVU9¶ t T 4 Mf U4 t Government, vide its notification dated January W w 1, 2016, nominated Shri Pankaj Jain, Joint Secretary, Department of Financial Services, Rft 4 fk , ff 0 q P m -Ministry of Finance, as a Director with immediate effect vice Shri Alok Tandon. RuMfR 4 fh&3sbikTXA R, 1089 STWT 6(1) The Central Government, vide its notification (- RA 39417 ZK dated September 15, 2014, nominated the 3194W 15 WVE 2014 &3ffEM t ;Nfft 30FE Managing Director (MD), Madhya Pradesh MV, q= RFinancial Corporation (MPFC), as a Director on the Board of SIDBI, in exercise of the powers conferred by Section 6(1)(e) of the SIDBI Act, fTM RE913 4 10 I3R?f 2015 rdt 914 ,ql 1989. Smt. Smita Bharadwaj, on taking charge as 1ftq aWIar tirM, f,-*4d a i.. T MD, MPFC on August 10, 2015, was inducted on MRw R tiMin 4 VfYR fd M u I the Board of the Bank in place of Shr ICC. Gupta. ,TOrk y t rfit 8i4 t rcrfrt 4 3ftr Further, upon completing the tenure of his 3WWr 14 ZPJ 2015 7 #hl qK t gTr 9Ti ErI nomination, Shi Anil Agrawal retired from the directorship w.e.f. June 14, 2015. -Wt r Aaa92015-16 ftdtt f* 5455 t4 SrFm w 1m aA m*e The Board placed on record its high sense of S T F 4 fg f4avw.oi appreciation of the valuable contributions made T I by the Directors who retired from the Board of SIDBI. %f x tR Nkpy r aA ti *q With the objective of giving focussed attention t M t \ d qt *to various important issues, the Board has constituted ten Committees viz., Executive Committee (EC), Audit Committee (AC), Risk a (2At) afr r I rastrarge1i3 1 f), Management Committee (RiMC), Special ZW imW utio A q4IT tq f4ft Committee to Monitor Large Value Frauds (uN5Et2ur42fF ), ;TaTf 914IiA iijftr j[ (SCMLVF), Information Technology Strategy (sTt #)pr ), ft Tf At), 7rn Committee (ITS), Customer Service Committee MdMPd (2 I E (CSC), HR Steering Committee (H1RSC), Recovery Review Committee (RRC), Review Committee on Wilful Defaulters & Non Co- 3Q[Kta (R) t operative Borrowers (RCWD&NCB) and ti Th i WI Remuneration Committee. LJa fPDt1(r #MT *4 M t . uU- * 4fri Sanctions relating to credit proposals above a M yTZ4r cl-HN IR 0144M0 threshold limit and other such operational %zR " 1j Amatters are considered by the EC. The AC, in OTT of&m i6 I 6 addition to overseeing the functioning of the RZW NN4 aWwAudit Vertical and reviewing its major observations, also provides guidance in matters relating to finalisation of accounts of the Bank fWt :4 and observations made in RBI Inspection report. *t ~t& #I 3R121e41 fThe RiMC lays down policy and strategy for r4 If AflU Fu t W * W #I Integrated Risk Management of the Bank. 3h F# MN15 # tft W&t hwot & With a view to providing focused attention on NIr 1 Ra(A 5 pTb #* qKAq monitoring of frauds involving an amount of e W rupees one crore and above, SCMLVF has been Q:TUw AdRa constituted in terms of the guidelines of Reserve * m , Bank of India. The ITSC gives direction to the M43f A fkMt A Pft At #, M% TF* Bank's IT function, especially with regard to IT 04A M3W t4 iti'41 TI vision, policy and strategy so as to align with its * TW 31ellclT business objectives. In addition, the Committee w -QU41 AU)PIZ z1 also guides the Bank in framing its long term IT r IK4 I MOON t& # 31ft ir;nT AdR plan and provides oversight of IT al i aff qORM7u T&t # I implementation and management. Annual Report 2015-16 *R M44 l 4 1 U gm = To enable the Bank to formulate policies and -& arTw 4 mmKTa va vM assess the compliance thereof internally with a 31 c -view to strengthening the corporate governance structure and also to bring about ongoing 3qk31-p $I R -i I Q 4 WF improvements in the quality of customer service ti ft Paqwiz #gcr ;k# L\1 Tr%?r i Iri provided by the Bank, the Board has constituted tI aff wffiA4 f D ' 4* CSC. HRSC has been constituted to guide and give suggestions / recommendations to the Board in HR matters. W3 3Uf 31 T wi Further, to review all NPA cases having wrT~ tw,~it aU 1u ~principal outstanding of T3 crore and above, RRC has been constituted. RCWD&NCB has been constituted to review the orders passed by V MMthe Committee for Identification of Wilful lftf t MW * tff 3ft Defaulters & Non-Cooperative Borrowers, WT LRi U O 3 t 3RtF1K5WT t MT# identifying cases as wilful defaulters & non- cfir 4 th t 3R rktRJ-A41t iTr Tidr cooperative borrowers. %friT if The Government of India (Gol) introduced performance incentive scheme for the Whole af4AT K- OME- 4-M 3VTI 91 W AW Time Directors of the Bank and for that purpose, t %9 RUf t kR1-jim- NbE as per the directives of Gol, a "Remuneration qftPM -fftft' r tCommittee" of Board of Directors has been constituted. 7JU~4 aj ;ft w Minutes of the meetings of the Committees, containing decisions / recommendations made, are submitted to the Board. The Board held six meetings during FY 2015-16 while the Committees of the Board viz., the Executive Committee, Audit Committee, Risk AMqff P F I i Management Committee, Special Committee to a T TT a r titi a ThTfiAt 1* T R t, Monitor Large Value Frauds, Information jpTAdpi vufA 4 &Til, Technology Strategy Committee, Customer MRRtfll n WNW, TI&A f*Service Committee, HR Steering Committee, k i fRecovery Review Committee and Review A Committee on Wilful Defaulters & Non Co- fRAin P : , EW, T UR, t, Roperative Borrowers held nine, six, four, three, 3k W15 #W *9 01 V four, two, two, three and one meetings -f Aaawi r2015-16 171 iFI5WW4 OUM 22 q[ 2015 f e-NF 4 respectively. Besides, SIDBI held its 171h Annual *W General Meeting on June 22, 2015 at Lucknow. }WlftT q;9W Shareholding Pattern ftr t *eff %go W,($7 3ft t W -l)Trt The shares of SIDBI are held by the Government NIR 3214 N 1 4 Atr 3P4 #Mr3l of India and thirty three other institutions / public sector banks / insurance companies owned or controlled by the Central Government, with IDBI Bank Ltd., State Bank of T ft tF f Wi1T # ) PI1P5 I India and Life Insurance Corporation of India as 44 45 &1i(F ICd fiff -A 3,69,82,250 jfWi its three largest shareholders. During the year, t 34 ftia I 1 Government of India was allotted 3,69,82,250 equity shares. XftU*qM Mwo-1 W" Asset Liability Management Committee 30z wfAw R3jF- 4ff 5 31;p IM In terms of the Asset Liability Management t& AOM -m i% (WcT?t) it 3aia a Policy of the Bank, the Asset Liability # t q Y Management Committee (ALCO) is headed by 3t fthe Chairman & Managing Director and comprises Deputy Managing Directors and other senior executives of the Bank heading Risk W9 i5c *FT A W U4 Nft, W4 ft A;W Management, Credit, Resources & Treasury and ;4ffW t F I M WfMR:W I 3ft MiRT Information Technology, Corporate Accounts & 3r;jW I I MR I I MMr& Wr rt Vat-iMr, NBFC Verticals, Business Head I & Business ,,Mtjj R A 3i r W 1 a id - Head II, as members. ALCO, inter-alia, reviews - NAA i* 1 Uand monitors the liquidity risk and interest rate risk in the Bank. The ALM system in the Bank is L4Uft R A MWPW IWAM9 Tft * 4ftiffla guided by the extant RBI guidelines and the I a FRi I tal ALM Policy of the Bank. The ALM Policy is reviewed from time to time to bring in 3 fta-awIT OiOt 3F75 3j\K9 31T1b ATIAt1 "dKA necessary changes in line with extant regulatory 3t ; t pw- ri ti 3ft -tqa r Wr 4fE requirements and the changing asset liability *f Tn & WTA I i%f ti4 2015-18 t *< profile of the Bank During FY 2015-16, the V%% -4ajW 3ft Committee met on seven occasions (including fdf' Wcirculation) and deliberated on various issues such as revision in Benchmark Prime Lending w (ttasuR), f r - n sRate (BPLR), review of Interest Rates under ila. Rt #&#, ~Fi!R WFi3Bt f , various schemes of assistance, status of resource 4W-dftT * UIr-s RIJrT 4 W*R, mobilization, revision in the interest rate t V fr rftfi 4 14tWT, 1Aff fla 3nzr structures of Fixed Deposits Scheme, Review of Annual Report 2015-16 (u43 Sla=) f w T (vq4uq) 4 Forex Operations, movement in Net Interest WM-n Income (NII) and Net Interest Margin (NIM), hedging of drawals under foreign lines of credit, exercise of Call option on Bonds, interest rate outlook etc. Investment Committee #W Thf4 3Tq*IW 4The Investment Committee of the Bank 6M f* %W = W M Z formulates strategies and recommends various options available for investment within the scope of the Investment Policy of the Bank and -q.u A% I Wff A#3k NMo ki f4ft fMDaW 4 relevant RBI guidelines issued from time to Oq%W I i Tht '4 2015-16 t *F t time. The Investment Committee met six times 45 t ? during the FY 2015-16 and inter-alia deliberated , W L4 % i f upon various investment and divestment proposals, sale of government securities from Available from Sale (AFS), review of Mutual 3WM t 1ztR Ai1 A YTA Fund exposure limits, review of equity MW t 31 0ft !fat * 1 M investments acquired through primary market, 3 rp t =d Pft I* 3w w* review of Fixed Income portfolio and other investment related issues. " WM Enterprise Risk Management Committee (EMRC) uAr UAM;p a \p 30ft (tAVqt) U 4 a)Tq The Enterprise Risk Management Committee qqM.R %M P W tpdf*a;qPj r M qa4*o (ERMC) is responsible for the development, overall implementation and supervision of the risk management framework in the Bank. ERMC is responsible for providing If 3[K 3it? j ?TMH 31flF-W k recommendations to formulate the Credit and } u 3wy ang ti f g Operational Risk Management policies and A1 ZT ] 314nq WR q0alu -4 i strategies for the Bank and manage the risks on the asset book. ERMC under the supervision of TqT 5;f 4Risk Management Committee of the Board aRAYt # 3;U V I P 4 QtQ;1 aFA#I evaluates and manages overall risk composition in the Bank's portfolio. -f Aaawi r2015-16 ftg V IrM TWr (3 WIW ) Risk and Information Security Committee (RISC) 5id Ttr TFT i 9ft (mnU% ) Risk and Information Security Committee af toiA * 4 Wift I qg (RISC) is a cross functional committee of VaT w (mm) w tr texecutives, which looks after Information RW ~WE m nr security (IS) and attempts to mitigate various IS and Information Technology (IT) related risks. it MITtR NZM W CT)* 9~1 mpullutt IRISC ensures alignment of the security M1T4M5W ~1 iilla9liqO; ;gf*Oite programme with organizational objectives. The agfft# I L ; fr *it &R~ ~ fanr 4 1 Committee is also instrumental in achieving w mA 4 rfT iM * HvTofI I-;I t organisational change towards a culture that A3 Tw qft) 7w * m7rm promotes good security practices and wt # I compliance with policies. 3fa fAZ wig IMIIE Internal Complaints Committee R-Jr WT 4 3ft TI # WZ aA (Niiur, 9ft As per the provisions of the Sexual Harassment 0 VrP) 3ftRT 2013 t k fF of Women at Workplace (Prevention, ,A kg qta, a3Fk 3 1 J Prohibition and Redressal) Act, 2013, the Bank 31_t R( x% nt Ut d has in place Internal Complaints Committees at 3iF a R C =Chennai, Kolkata, Lucknow, Mumbai and New # Delhi for redressal of complaints of sexual MW! 1T~ ThI 4W i harassment and for matters connected therewith t[ lT A* Vft 34tP #4ft a)1tr i iWiU ;T or incidental thereto. During the year, no firel Icomplaint of sexual harassment was received by the Committees. 35t A Internal Audit A wTM 3ftr4fRF -A Internal Audit of the Bank plays a pivotal role in 4 3, p qA 4 a strengthening Corporate Governance and Z- % complying with Management objectives to 314 IM 4 Fr #45f mV #I strengthen internal control and improve Risk Management. t-gt ¶jAudit Vertical has been carrying out Operational a Wff 4& 5 d Audit (OA) of Branch Offices (BOs), Regional AMl0 , R 1C,fft t Offices (ROs) and select HO Verticals, Management Audit (MA) of Head Office (HO) Verticals, Transaction Audit (TA) of Debt Annual Report 2015-16 MW-Vh tr ittIt I zft ftorig Wil- Servicing Activities of Treasury & Funds 041T, V fW yIf Nlgul WpAW MfT NAd Management Vertical (TFMV), if Control 31t1( K WMWT 3 #1 ffr Mq Aiz3. Review, etc. on a regular basis. Besides, Audit q#4T gW &5# - t # *W Vertical reviews the monthly Concurrent Audit 9tf9T ft"V , 3UMU j a reports of TFMV, Transaction Audit of Indirect . Finance Vertical (Banks & SFCs), Application Software Audit of four applications and VU fNetwork & Security Audit of Data Centre and DR Site being carried out by external audit qf Tt I'*ITT *iPt F4RW firms. Concurrent Audit of TFMV covers the I FiliY t ~R, -P yr Treasury Operations, viz. Money Market i tM fatqr; 3f t ae5; 5 Wi jW qRiQ IMr Operations (MMO) and Dealing Room WIftrg tg r | 4-o Tr T &5 3t tF Operations (DRO) of TFMV The Bank is also ir 4 gi"i)fpKr? 300 MW #t # t4 * ft undertaking Credit Audit in respect of Accounts t M T-ff- w I ?111 ? 300 el under Direct Credit Schemes where exposure is t ;q Tf4T W A i 4 10% WIT if above T 300 lakh and in 10% of the cases on Creaft upedk"M 9fsample basis, where the outstanding is less than T 300 lakh, through Regional Offices. Sit 30 WW 01(4 A M ITO The Bank has also introduced Concurrent Audit i # #mechanism in select 30 BOs through external 1 N " mCA firms, which together account for more than 900% * 1 #q* *W*" 3?kE90% of the Direct Credit operations of the Bank. 90 wsmipm qK tiCA m* Interactive meets and sensitization programs 17* with Concurrent Auditors and Operating Offices 3?k MMPRi5aT Wfi A , Ut MTP 7 are held on periodical basis to improve upon 3V1FF 4 RJU mmM FI I1 compliance and governance. fft - 4 2015-16 * 1IF #f ViF siunl& The IS audits taken up during FY 2015-16 are (i) ##tW Airr-qta 1? W5K g- (1) 3W rgV4h Application Software Audit of four applications, & 39hll[ #IKti tWf-ftT, (h) 31 U51Md?f (ii) If Control Review of 31 offices including * V*T AdRft*Aul W&T- f WrfT *t Data Centre & Disaster Recovery (DR) Site and 3h FSoa fe t (fR) W Wft #, (iii) (iii) Network & Security Audit of Data Centre w I t W Fr EU *lWT 1w1- and DR Site. - t &Fw 1033 fliT-wtg tii , fYt 109 During the year, 1033 audits comprising 109 MRtjt+A r T, 6 f4t AMir-0T, 17 miRM Operational Audits, 6 Special Audits, 17 *iWT,9 , if& 12 #*fl ifflT, Management Audits, 12 Concurrent Audits of -Wt r Aaa92015-16 wf I ITmi 352 titfl A-qt fw gaim TFMV, 352 Concurrent Audits of BOs, 12 TAs of O4 I 4Ru T4R - 12 F&EBTg tiq T, debt servicing activities of TFMV, 5 TAs of WlW ft q9Mr (" u UmI*) * 5 # Indirect Finance Vertical (Banks & SFCs), 489 * 0iritr, 489 W *-49T dW 31 Credit audits and 31 IS Audits were completed. g4 1 %Wfbl 5 Audit Vertical follows up with ROs for _1M. & ft-4 f% fsubmission of Monthly Status Report on the p 44 W a status of compliance of audit observations & ensure time bound closure of reports / OMTfM M1*0 tW FPffcompliance of the observations. With a view to automate the audit monitoring process, a a tI trW r 3rr Rseparate module "Audit MIS & Rating Module" fraW ~ has been rolled out. rrgvr tmrrfas ntrwr *MWT#WT -4 r t r T qff W q ;q Audit Vertical also ensures compliance of RAF U Wt VPPU -4 gjjj observations made by Statutory Auditors and aI W TrWKt Ut e a RBI Inspection Team in close coordination with A %0614 1 31719- * ip%c t 1 Corporate Accounts Vertical and RBI Co- ftffr 4A b t f7 3q w? -- ordination Cell. During an audit activity, inter- S# ttN alia, compliance to KYC guidelines, verification of end use of funds, creation of assets, 44fW t-a t R fwadherence to policy guidelines, systems & fkm WM #I1 procedures etc. are given due focus. f*Ter rtIs 111ME R3 t M 5 h*R5 31k tWK ;HM% As per the directives of Reserve Bank of India I W ;-t it& a * *3Ffrlf and in accordance with the requirement of t1i vuwriid k dr it A%q~T 3ffafta Pillar-II of Basel Committee-II recommendations, Risk Based Audit in respect of all operating branches is in place. In terms of the same, the BOs are classified under Low, - 4'CPH f 3Mt * ~ Medium, High & Very High Risk etc. on the 3rdPF 3k rfuf 3I0 3FUF40 l f Q basis of credit and operational risk areas and Tr I WT MIW4j i T - fiR % r 3?k compliance thereof. In the overall risk Afl ftFu1 TZA 4u iff, tIi assessment and risk categorisation of BOs, the #tAit J U a- Credit Risk Operational Risk, delay in !4 j* -A t q compliance of major audit observations, 4 K' wffI = Aincidence of NPAs / fraud cases, etc. are being factored. The periodicity of Operational Audits iIWtI 3* 4T~FftrT M- kc-*in respect of High Risk BOs is being stepped up, ,I I irrespective of their volume of operations. Annual Report 2015-16 3WR T 3ftwWT - W bw 4, tg-- Audit Vertical submits various memoranda *Tw cfQck arg-qt&g t {jjji- 3kjm 1qj ft relating to status of conduct and closure of f4t, 7\,WuT, *W-ejfflT fta4f6z t 3Tg audits, revenue leakage, performance of BOs xR TW 0)qM ar4f)t4yg-y a sjv¶- based on audit observations and violation by A t qaftftj -gW ft r functionaries in exercise of discretionary 3wtiuFi, w 6Va w- powers, IS Audit of Data Centre and IT Control WWMOM A ipf 049A M u J* , Review of BOs, status of implementation of SLy&A A-flp * ftd t fGhosh and Jilani Commitee reports, revision in %Eft fk74 ft t5 FfIMah dt guidelines by RBI etc. to Audit Committee of the Board (ACB) as a measure of good Corporate FT f~it 9~ dTGovernance. VR, - d T. tiHuman Resource Development - An Overview ZT 31 T1tR 2016 #M 10 j6 T V ila5 -ZW As on March 31, 2016, the Bank had on its rolls Flav4* dtf f, fI4 t 908 31fbcN;b 3k 95 *4u 1060 active full time staff comprising 908 I EW k si 57 M&Ri W *1 tm" j officers, 95 Class III staff and 57 Subordinate 186 3FS1j%1 ,74 f f staff. Of the total staff, 186 belong to Scheduled W 11 3 Castes (SCs), 74 to Scheduled Tribes (STs) and W 171 3T f w 291 t 1t f I fi-i 171 to Other Backward Classes (OBCs). The staff 4 8 Eg? '4tfAr, 29 fElT *4 t 4lifer 1 strength included 8 ex-servicemen, 29 Persons f wr i w vie -ffr wi* yrf fbersdifMvi-iwft (mrf) msi sooi-me a rn aWi The Human Resources Vertical, SIDBI was conferred 150 9001:2008 certification by United Kingdorn Accreditation Service (UKAS). - wMaMIR 2015-16 VffV #P f 1SlTfFf, A F*tt#fi with Disabilities (PwD) categories and 1 in both ilo fiffA W t * #Wf234 9I ex-servicemen and Persons with Disabilities (PwD) categories. The strength of women employees is 234. gWtruor EN tIft 1 bkr Training & Career Development FM -mRu 3 ftw N* A t 4 Changes in banking environment and q h t M t 3j 3expectations from customers are providing 3T * 11 %9k t ft *greater opportunities and challenges. It is imperative for SIDBI too to keep its professional workforce skilled and updated on a continuous 311fci ITU TI " 31 r 4I df basis. The Bank continues its emphasis to 3MR WI VO 3t 3,r 3z rTF, M 1 update the skills of its employees and impart 311 4:efAT -4 - * i -7 4 appropriate, relevant and necessary trainings S UArR tft and knowledge. This is also being done to increase motivation and job satisfaction of its employees. f4 MA MrIlndi iO ()ft R%4M trda, The Bank continued to impart training by RIi do R ! ( tW- deputing its employees to (i) in-house training m f ~ iprogrammes, including at SIDBI International Training Institute, Bhubaneswar (ii) inland 4 A T c training programmes / workshops conducted / 3 O 0 4 Morganized by reputed national institutions 2 Ti `KI Au 4 g'iZ Mi FfM t W I within the country and (iii) international fhr nUM AT TffR ti programmes. The focus of training function is to ensure comprehensive all-round development of the staff. Mr ft 4 MCD EfACDrf 3ia1a During the year, Bank has made 1031 O -m wq)f*#ff fit 4 , ftq U nominations for various inland, in-house and 3iffu Wit 4 1031 -mi ThWi international training programmes organized by 169 1Hif Mi i*FIT d M 471 -imW renowned training / academic institutions, out of which 169 nominees were women and 471 nominees belonged to reserved categories. WUl ;W4;QR 3Pft fdf#ff "1 & Nineteen officers including five from reserved q % #4 f t 3r1i 4R4 bi 3kW categories were nominated to attend T Aiz r31 t 'a 3ik1zR M 1 4 %94f international programmes in order to familiarize A it uft Ta TROW 'TWI 4w4 * ft srTwr them with the current international practices in 4u ti ft-4 4 tA q 32 3AwW4 t different areas viz. Development Banking, 90 Annual Report 2015-16 *W md4q 9 31r4f N(l} fOW TWI gR W5W Leadership Development, Information S3 t FW Assurance and Management, etc. An induction R W4 %U wbg%0 A l programme was organized for 32 newly recruited Officers in the Bank. Pre-Promotion Ift 311 TMI Training for SC/ST/OBC Officers was also organized as per Gol directions. 9imI-wulA M Staff Welfare Activities fft -4 2015-16 ki 5I5f - -W4 3h During the year FY 2015-16, the Bank continued Trb qNdR t V t Wf5g lulEa its support for multifarious welfare activities for the staff members and their families. Under the M V t q # 2 V & guidance of Central Welfare Committee, funds to the tune of T 2 crore, were allocated to welfare associations of various offices of the Bank, to A T, iW 3k T L O torganize welfare activities for staff and their wIC0 TAC114W 311ONCr T(N families. WM 0Qfht-94e e4 ¶IU Improvements in IT Set-up * Alem-i, sware, MmuA 3ft Wff4 k * Implemented various IT solutions to S3PA 4 flNftc -K4 5encompass all facets of operations, t a \ f W fq 1i management, monitoring and reporting. U AThe Bank's website empowers the customer for on-line submission and I WW 3* Wtracking of their loan application status RM IAgRt4K 4 U 4 iTfa WflI& t9 I ' & and submission of grievances / queries, manE TMd t Wrk 4 fffa fwR l *tWr besides providing detailed information on "#I 4available products. * rr4-9 0rre ,91 mufRn r Mr * The Bank has recently formulated new IT zi 5-&T 4 m t 4 Strategy towards improvement in customer U 4 4 C Afocused service delivery, risk management, %* _ lFinternal efficiency etc. As part of digital initiatives, new Mobile App., "SIDBI MRA", was launched to facilitate A Wt-4 4NM~ 4* #4fb?r 'gim5 -mobility in viewing customer accounts, -fuI ?iI1T w i ftw4 3rtT wTtt providing direct channel to customers to Pr8Td 43 ir QTHPr ft UwR I interact with the Relationship Manager (RM) and raising other service requests etc. - wMaMIR 2015-16 a0 Vigilance f* *W t qM oThe vigilance set-up in SIDBI is headed by a ;W005a(t 3) S; M 4 full-time Chief Vigilance Officer [CVO] who is ove4 t z h A assisted by the Vigilance Team at Head Office R ~and Regional Vigilance Officers at the respective Regions. #R tM The Bank lays emphasis on the preventive and 491 nji15 f f pro-active vigilance aspects and has been taking 3 g m Ta # u several initiatives for strengthening the systems %and procedures to promote efficiency and transparency. Preventive Vigilance Committees f &)/TW \T# W fT h( 5 7 & 14045a at the Regional/ Branch levels and the Vigilance 3k g m4wr 4 i ifa T iflf r ;j & Committee at Head Office have been set up to 1 j # iM 3ft - review the preventive vigilance measures. An fiv l aw * # fInternal Advisory Committee on Vigilance scrutinizes all the complaints or cases arising RM ftout of inspections, audit reports, staff WW*3 31F ZFrK M* o f 4R accountability reports, etc. and furnishes its q3[ft e jI w s tfi k ff Ar 4I r Wi Ta i recommendations to the CVO regarding the aw iRSWTW siexistence or otherwise of the vigilance angle in the issues examined by it. -t MVigilance Vertical acts as the nodal Vertical for investigations in all cases of frauds perpetrated Ent ;14t uon the Bank, evaluating the role of third party Mt t~4entities [ITPEs] and getting their names included W FTR# t #i W aM FRT 1ret?c Vt in the caution list circulated by the Indian 4 I4R# 4 irial cift M g 9ff Banks' Association [IBA], for deficiency fqF 4 -iam ORT t IdVTU0-=; - IFF al RUas observed in professional service rendered by them to the Bank. As a part of Anti-Fraud AlQ ~sensitization programme, the modus operandi l-iCl WrW-WM W tft/IW TifJe -t f W of frauds are shared with the Regions! Branches * i # 1 E9 RiA tbi*, d1ft *RNW, from time to time. The CVO, RVOs (Regional 3 3f sftw 3iT w 5Ff r WW 314 mirwU5 Vigilance Officers) and the vigilance team, in 5 4 jAMi #tt 3jaJTM l their periodic meetings with the staf, discuss t : XK iaathe incidents of operational gaps/ compliance issues and sensitize the staff on the importance of adhering to guidelines, systems and processes A'MW -1f40Wfft t TTW t -4 3# and making the decision making process 92 Annual Report 2015-16 MrfW 7150 I iw raItf rrI ft ttra Irr transparent, fair and equitable. To spread i llww ll tiflt F ZWWT' vigilance awareness for participative vigilance, # fkiti ike WrdT IT Tl t,WA the vertical also publishes its in-house magazine __ "Dakshata" and created Vigilance Blog on SIDBI Intranet where staff members are encouraged to 3N j~3 S NT@R t contribute/ participate by way of their 4W P)Mft1f f TI7T 3Th I1 experiences/ articles etc. 31A AN0 ROOlaft The Internal Audit reports of the branches are td" I Areviewed by Vigilance Vertical and the key compliance related issues are escalated for immediate rectification. The Vertical also iTIf I cfU fdRg *f " tcA (MF suggests measures to improve and strengthen ait4MT The Vigilance function in the Bank has thus srdere ,4 pl rhiir f ur gr whY tA been laying emphasis on the proactive and a& dumo' I j s x, r M =14tv participative vigilance at all levels of operations Me,-irA 1 \4fflE j %j~i -Th ffT ij ~to eliminate / minimize the incidents of frauds, corruption and malpractices. Ag A y,vgwP 4ftj SqImplementation of the Official Language Policy in the Bank f%rA 3 i W* M; M Wi SIDBI, since its inception, has been making ;KjIqj T i v t t vl4 t , conscious efforts towards implementation of the %T40 - 4R,0 T official language policy of the Government of m 4 iv I A ft iw India, which has enabled the bank to attain a considerable success in establishing Hindi as the medium of its official work. **Q;q F tfa!r 1~-fAr% 3 R w r ff Members of the parliamentary committee on 0j1c f4ft #4t R; 0official language and Government of India, Ministry of finance, Department of Financial Services; Ministry of Home Affairs, Rajbhasha WTR Vibhag, as also the representatives from RBI f4 Y 4 jM TITg Rl yif j4qq mr64 gzgif have, during the inspections carried out from #- # o - 4k - j* .44 time to time, appreciated the intense efforts made by the SIDBI-offices with regard to 2014-15 TTiprogressive use of Hindi therein. The bank TrfTWM {tq a1 t 4WIT ' t 3if4 -KN^qqx received second prize from Rajbhasha Vibhag, pTf 4 iAwtiw iM, Wa Wd Ministry of Home Affairs, Government of India Tr II r< ft ounder 'Rajbhasha Keerti Puraskar Yojana' in the banks' category for a consecutive third time for gmIZW jKxir C,1%Rgcommendable implementation of the official %W iI $1 ;rMR, WIt 3ir ft UR 3WZINNr language policy during FY 2014-15. The prize ,I,il Iiw &g Nf%q)RR 4 fti 4 2014-15 t was given by the hon'ble President of India. - wMaMIR 2015-16 ft " "V " a5 Vi?jij p "T" fha ft Besides this, Bank also bagged two consolation R w 3f, s WHo Thu4uT ~ ftprizes for regions "A" and "B" and a second gm fprize for region "C" in RBI- Rajbhasha Shield Competition. The prizes were given away by the RBI Governor. tr PWH EfldT, gi rAfft, 4 fdkA Official Language Implementation Committees CD(4My p4yp * fMfi i 4 -fhAIgy have been constituted in the Lucknow-Head cN144-1 * TIN&T F1 W if*Md 4 44 & Office, Mumbai Office, New Delhi office and all ROs/BOs of the bank. All the committees which dealt with the review of the status of official F I 044 * I4%IT * f449T language implementation, laid emphasis on t 3ft 4 TUR f qjlVi-EITjT 3ifff EusEl31 4 enhancing Hindi correspondence and wur w4mgt wt -4i fkw Trzu i augmenting the usage of Hindi in the bank's internal working held their quarterly meetings regularly during the year. t *wz ' tr w wwwR MfAa Tqq 'Sankalp', the quarterly Hindi magazine of the -* fw -m -\T r r f 3aw 75 mi ftmrT bank is being published regularly. A total of 75 S1 qWU * V# t Wftg volumes of the magazine have been brought out so far. Renowned scholars from various parts of the country have acclaimed this publication 9i?4I1 4m, ftwk t zit 4rrw i%fzrT a from time to time. This year too, all offices of the bank celebrated Hindi fortnight on the mThtTh?2 3fT1ANU It Tr4f I occasion of Hindi Day, which was marked by several engrossing activities and competitions. -44 Ii4Ks?W Vu M' Wr 4ir-ft. cNqj¶N4q Hindi correspondence in the offices located in f"4j MrMR dR P 97%, 92% T 81% , W regions 'A', 'B' and 'C' stood at 97%, 92% and ffmht % K l f81% respectively, as against the targets of 100%, A 4 M90% and 55% set by Rajbhasha Vibhag, Ministry of Home Affairs respectively. It is noteworthy 55% I a t 1 MA V4 f tT I' 0 4 fM that the targets for Hindi correspondence for the qffr-iEm t 1W mR mw l, 3 wr t 4 regions 'B' and 'C' were surpassed, while all out MtW-I t( V 4 SMMfqTBUit 11 4 #I V, V efforts are on to reach the targets for the region w Tralf4 W'A'. The ratio for notings being recorded in W Mw7pq QT* 1 1 Hindi in the offices situated in regions 'A', 'B' and 'C' remained at 87%, 69% and 54% 87%, 69% aZ 54% T9, 3df TfTIfflmr IdW I Fa F: respectively, which is in conformity to the 75%, 50% L30%tI specified targets of 75%, 50% and 30% respectively. 96 Annual Report 2015-16 TWim aft41gf 1963 (4TdiftR 1967) A Mq All offices of the bank issued all documents 3(3) 4 3jfMfbn WilA d U t enumerated under section 3(3) of the Official 4 4 7 4 4 gIc -a Language Act 1963 (As amended 1967), besides Soffiftim t T W 4 w it l fq q ensuring compliance of Rule 5 of the Official Language Rules 1976 (as amended 1988) by 19 T W 1) -responding in Hindi to the letter received or signed in Hindi. 41 4 f -# W;Wl - T W 4 A portal on Rajfbhasha has been made available tft *IAC W Kld l #t at SIDBI-intranet, which provides valuable 3 E drrT TT, 1dftq itil information and other material on official Tf W5 language policy and its implementation and aims at giving a fillip to carrying out the bank's transactions through Hindi. RBI- banking 4,99R47 4 Tglossary, sentences and notings used in day to t 'R 3tt9)W Ift TI 1Uftday working have been uploaded on intranet, so NW 4 R4 I W! iT WRW as to enable the staff members use this Help 3qt Ilr I material while working in Hindi. t i 39 u f VaTfW fzfr, 1976 ifcg As many as 39 offices of the bank have been 10(4) 3 FR l v iw f r x 4 s ft I notified in the Gazette of India, as per Rule 10(4) M% aVMq) # WaW ? of the official language rules 1976. The staff %4 4 0ii W tC T-tPR 8(4) t 3Sf members attached to the notified offices and aq' 3possessing proficiency in Hindi have been issued individual orders under Rule 8(4) to carry out their entire official work in Hindi. 15 1060 TIWN&A 4 *(!Iqf * k 57 AI Out of 1060 staff of the bank, a total of 986 staff tPK) 986 ii WRzf(4 IPcT E\ = f eW) 43 members (including 4 contract staff) of the Bank N Ur f iti iWFR - , ZMrdi%t 21 3MW-req (except 57class-IV) have the working knowledge g%ft f It 1 3fr5 tDIffii ot f q W . of Hindi, while 21 remain to be trained. r qT W, Measures have been taken from time to time to NrI # AN #impart them training. A roaster has been W w' m r wprepared after assessing the Hindi knowledge of the newly appointed officers/employees, and action initiated for imparting them a need-based training. ft 5 tKF l5 ffrilz iftI 4 qi7 58 During the year, a total of 58 Hindi workshops W 45wkmr1 IfIStraiN I , 3t iW Zh were organized at various offices of the bank, --7f m=-g. 4 WRtW WrW and staff-members possessing a working -f Aaawi r2015-16 W etqi jl% m 3qMt t WW-WI, *IGWp knowledge of Hindi were imparted practical tRj a i4 a4L4R uj training on Hindi language and aspects related fkm wMI with application of Hindi, besides usage of Unicode on computer. Rr w K 1 -t t4N mr 3pm A Hindi officers' conference for the Hindi 4ggg, fm 4 d W MjfbaW W 4iq{ officers working in the bank was organized 30 zWW-01 di, 2015 ! ffa M during November 30- December 01, 2015, at 4 q%AVj #M-SIDBI International MSME Training Institute (SITI), Bhubaneswar, as a measure to comply with the annual implementation programme of the Government of India. WW Tt * TriT, f e1rM, tr Keeping in with the directives received from the y r ft 4 a4 j W M%ftq Department of Financial Services, Ministry of i fhEw1 - 3 T 2015 Rt F t , d 4 Finance, Government of India, a Management g4n%W t #Ts Development Programme for the Hindi Officers of the bank was organized during July 1-3, 2015 at SITI, Bhubaneswar. VR t , f 4 4-34 1 3 SIDBI website has been made bilingual and kept Powrn mmT TgT I w if, ft *4 f ut wgrzm updated throughout the year, besides providing k d *i 4 zRpj srj= translation for the websites prepared by the associates and subsidiaries. Zft Z tw widam i 3t 4, In pursuance of the annual implementation j*WT 3rft 4 W qf&w, stMfr cDjf-kq V programme, official language related inspections alwl rTt WZ 36 dOM4 8 9 W were conducted by the Head Office and the m PRf #gr 4 w Regional Offices in as many as 36 offices and verticals. kwi ftI 3k fk t iiig i rife4-t The bank organized 11'1 All India SIDBI Inter- f" 4 j -Mt 3kW Bank Hindi Essay Competition during the year, t 4 t &,(TH 11g 3iVR 17,?Tt Aws i which aimed at motivating the banks and the financial institutions of the country to carry out their official work in Hindi. A book titled 'Bank, -&aY 31f?tF WlRAP %d fk&M NfWlil .4 Samaaj aur Mahila Sashaktikaran' comprising 1W iT9f Pmdft 4 "ft RWr 3ft ql selected essays received during the tenth All- q1qIvtp" I *ft * TdgTR poft4tj fd5 IT TI India Hindi Essay Competition was brought out ,;&o pM th &q 44 during the year. This publication can be used as a reference book in the banking sector. a.T "i rdT 98 Annual Report 2015-16 e I*C; IiM 4 NY WspT t sq4 -e4 Following the legacy of the previous years, this w -OgA t4 TkZM year too SIDBI Rajbhasha Shield Competition f wo f4 ftit was organized in the bank, with the motive to create a competitive environment at the bank's regional offices for working through Hindi MWQ-W,3r -i N- l 4 4 '4 5 3tW t medium. In the same manner, this year too, VUU f &t c q Rajbhasha Pratinidhi Yojana was implemented W4 t Tamongst staff members belonging to Hindi- speaking and Non-Hindi speaking categories, at each Regional Office and HO-vertical level, so as to boost up the application of Hindi in the official working. t Ar4 4 p9/t1 tfr Several Manuals/Procedural Literatures of the 0 fh- ar4 Row, A e- )qAet ; r bank viz. One-Time Settlement Scheme, Venture dmr4, 3e A%,,, t , 341 L Risk Management Policy, Security and 6441 A % Collateral Security Management Policy, SIDBI's working, Customers' Complaint Redressal W) TTFr, RTM5 d4rell MhR0T * , Policy, Customer Compensation Policy, Bank's RTfr5 19%0 d W 3Uw r OWRA 3 Procurement Manual and Staff Accountability iz4T C40 Policy were issued in bilingual form during the year. f W;PWfl A All offices of the bank participated regularly in SAM A 4 NAO \gq the meetings held by their respective Town W fOfficial Language Implementation Committees. In addition, our officers/employees also took 311zhNo fpart and exhibited extraordinary fete to emerge a T itI A 9tiral t J victorious in various Hindi competitions held U-4& W jTWW I fE l 94,1Tf 5 under the aegis of these TOLICs. Officers from 00eTUr 4 t#iA W& mID #rar f 4 tr cNifM the bank provided editorial support to the t M#ft 4 "qyfrt 1950,7 -- t -gM. magazines brought out by their respective f w ziu4f1 fi3TI ft t dPllFt, TOLICs, besides making creative contributions a rv, 3rix, 0, OfwaT, 0 , therein. Bank's Kolkata, Pune, Bengaluru, Ar wz TAhmedabad, Chennai, Coimbatore, Hyderabad and Chandigarh ROs and Kochi, Jammu, Jamshedpur, Raipur, Ranchi, Bhopal, Varanasi Ch0l941 3M 1 51d-4- f Fraitt and Kanpur BOs received prizes from their 9TR VaO¶W MON4F 1AW h 1TS qF7 f1 PT respective Town Official Language wri I Implementation Committees for outstanding official language implementation. 99 -f wMaMIR 2015-16 qtIEM si 31IalT MRA 2005 r f?5qq Implementation of Right to Information Act, 2005 fi FIT M 31fFT WIt 31rAI 2005 (M%ftFa) The Bank is implementing the Right to POMNC cleWR 1 I t iwfit 4 3o Information Act, 2005 (RTI Act). Accordingly, (www.sidbi.in) zK ir t aWd u4 TR , the Bank has displayed in its website (www. 3rk MIf k ft fsidbi.in) functions and duties of the organization, norms set by the Bank for discharge of its functions, powers and duties of Wg t t0 3f4W~ 1t1bits officers and employees, organization chart, Tz- 3Ri' A r 4(1)(;U) 4 4N&d 9I sub-ordinate legislations, etc. as envisaged 3ifTCi K R, ft k Mtt f5t V FIT under Section 4(1)(b) of the Act. The Bank has 3I *t 3tA), Al&m t4hT ft TrTrr designated a Central Public Information Officer 3f t;t wrgnew *m ipm ~t (CPJO), Alternate Central Public Information MWEMT 3A 91rif 31 A PVe E Officer, Central Assistant Public Information 4t 1%Z 0 W l fT Officers and First Appellate Authority and Alternate First Appellate Authority, in terms of the Act, the details of which are available on the (#,3t) F ft 4 JM5 ARRMW ORT Banks website. In terms of the directives of 4 t *T k 3 4 05 I[1taci Central Information Commission (CIC), the 3~1 49 aft f5Wt, %f;TUfrT Ms Mfia Bank has also designated a Transparency Officer #4tW U M -31 TT -g q g p4 for the better implementation of Section 4 of the i IW R jqdff WepTh4 t l 4K Act with a view to promote congenial ifT r r- i 1¶U U A 318 3WuFf t , 3k fi* conditions for timely response by CPIO to RTI 31M&A fftT 3 t 7queries. During the year, the Bank received 318 applications seeking information and all the applications were disposed off as per the provisions of the Act within stipulated time. $44 t5 &MF ft t PF SIMTAft 9itr1 4W 21 During the year, 21 appeals were made to the 3" T I r T R IT0 liFT V Tr 3TffTuw anl t it3 awrUfmr c) Amount and percentage of net NPAs to net advances under the prescribed asset classification categories ftftft Z4 2015-16 fktU10 2014-15 FY 2015-16 FY 2014-15 44 Category Xift Vr TIft Amount 5%W Amount Percentage Percentage 3W-W-W 311 R * Sub-standard asset? 376.67 0.57 291.05 0.53 FifNu 3il Doubtful assets- 104.74 0.16 140.39 0.25 giq I Total 48L41 0.73 431.44 0.78 * frTh O tRW 1fiiw* u ff(FT t3#tkWWIi##1 i t if FITI1$t?TEff. f*EII4 2014-15 *f~T*[ fhnosnfkrit trks.t 6af t nor *r af trwr wtrdfbreftnu I * Adjusted provision for diminutionin fair value and Balance inSundies Liabilities Account (Interest Capitalisation) in respect of restructured accounts classified as NPA. The Net NPA for FY 2014-15 will be NIL if the amount of floating provision is adjusted against the same. V) Wy MNr4, h th (sU b Ri 4 ft 7w fW t war) We armi t A -?o t;rq fan wu [rCrr A *ift d) Amount of provisions made during the year towards Standard assets, NPAs, Investments (other than those in the nature of an advance) and Income Tax f4EW I Particulars W4 2ft5-16 %ft u4 2014-13 FY 2015-16 FY 2014-15 WTY, 3 fW / Standard Assets 3.46 - gTh041 Hf= /NPAs 296.91# (251,55)* ?r&u / Investments (75.22)# 54.54 W T4?ifT I Restructuring of Accounts - - 3T4W (NIt ri W 3tlimTntA, zft , tiw l i ) 459.01 698.11 Income Tax (including Deferred tax and write back of excess provision if any) * cf 31iffftW WR n 3sfk1 iR iMmt Z232.42 4tw * Net of additional NFA provision of T23142 crore. # im Muu u 4-4 VC kn Wu Net of write back of floating provision. Annual Report 2015-16 viut(r aq 3shfm r t SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 31 Md, 2016 * JMW $1'S ft I Schedules to Balance Sheet as at March 31,2016 (Z W4 1I Crore) * #IIW ftW4tW 4 IWfr I e) Movement of Non Performing Assets (NFAs) ftMw / Particulars flfk44 2015-16 hti 2014-15 FY 201-16 FY 2014-15 ft a* *p w4 M4 Wa ft i Nwsftirc? 741.11 1153.12 Gross NPA at the beginning of the financial year 4i : 14 #5 1fr 4Nti / Add : Additions during the year 536.83 478.34 3c AV (d) / Sub total (A) 1277.94 1631A6 WW 4:-- Less:- i) 3WR I Upgradations 11.94 34.61 ii) (RfF O RT W& 8 ) 59.09 506.39 Recoveries (excluding recoveries made from upgraded accounts) iii) W I;t U / Prudential Write-offs 198.73 106.41 iv) (iii) * U0 t 1 wTA71i!w - 242.94 Write-offs other than those under (iii) above 3W M11 (u) I Sub total (B) 269.76 890.35 100818 741.11 Gross NPA at the dose of the financial year (A - H) w) * f nw fm 3 W #l ugtrw 4 qftrd v(w wnftff wfl s no R frI f) Movement of provisions for NPAs (excluding provisions on standard assets) Wn% 0 * 7 WT# 3 *1 / Opening Balance at the beginning of the financial year 266.11 867.01 At4: a4 5 wrf 14 tT 4WF / Add: Provisions made during the year 442.48 23242 vcfg4 : E /t I R-T hw 30 m r sTrmIT 201.07 833.32 Less: Write-off / write-back of excess provisions I t Ti q1rtw I Closingbalanceatthe closeofthe financialyear 507.52 266.11 s) far 4rA ussoftw 'rftur g) Movement in Net NPAs f4ft * %TW 4 3= *qW/ Opening Balance at the beginning of the financial year 431.44 277.05 if 5: tw #RM T / Add: Additions during the year 94.35 245.91 vTTro tMrr 4 / Less: Reductions during the year 68.69 57.02 d#t POURTa* w xiatIrta u lw* 2.89 (6.78) Less: Provision for dimunition of fair value of restructured accounts classified as NPA* Wigq: yid49rJ w I31tq(Ulrj4 Amu) (27.20) 41.28 Less: Balance in Sundries Liabilities Account (Interest Capitalisation) in respect of Restructured NPA Accounts M 4 t wiVR W %#W I Closing balance at the dose of the financial year 48141 431.44 "d4P5 1 id 01 1 3f1filil4tqiiktIF), ff $1T 2.28 &I11, ¶iR iI RMIlt W 05-16 31r uf4W 4 # I * Provision for diminution in fair value of estructured accounts classified as NPA as on March 31, 2016 is 15.17 rore, as against 2.28 crare already considered in opening as on March 31,2015. Accordingly the figure has been worked out for FY 2015-16. 17 -f Aaavi r2015-16 111&N mg asd ied SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 31 , 2016 i 0 r-1W lt /jt I Schedules to Balance Sheet as at March 31,2016 (T Z4 / Crore TF. WrW0r C Credit Exposure V)4fhfbiu OFWr4 f r laWdwT "a t r: a) Credit exposure as percentage to capital funds and as percentage to total assets, in respect of: fthft -4 2015-16 / FY 2015-16 fktt¶-p 2014-15 / FY 2014-15 V. ft an ftdfted? cm anftid f43Ird Sr. No. % * vq 4 * %h*WT* %h5y*v i5%i6 4 As%to As%to As%to As%to Total Assets Capital funds Total Assets Capital funds 1 3t 03F 10.25 66.30 8.30 43.57 The largest single borrower wu* WF aERw 4 3EIRet wIR45 Wr14A #alR 1, 3d: sftr 391K The largest borrower group FIV 314CRI1 IF%:*g I As large borrowers are Primary Lending Institutions, the concept of borrower group is not applicable. 2 10 imt Wt Tz3m rf 53.65 346.92 48.16 252.90 The 10 largest single borrowers in YOa# Wt iue uEe I -urxd Trairm r Wva Wt31 9& 041 M , ar. M1r1M WV The 10 largest borrower group 3I,4RaU1I1 %9 t 9 As large borrowers are Primary Lending Institutions the concept of borrower group is not applicable. TWr R311rAltudib 9a f 7&w4 q'mW#t4ilhftaNbikWheMwR b) Credit exposure to the five largest industrial sectors as percentage to total loan assets: f4ftEF E42015-16 / FY 2015-16 fth aN 2014-15 / FY 2014-15 W T PT / Name of Industry 45FAI xift mW41 bi M mo r t mwql Amount % Amount % Outstanding % to total loan Outstanding % to total loan assets assets qftigf 34UT / Transport Equipment 1,474.46 2.25 1,652.02 2.99 iff 30ih (y -ift) / Textiles (Including Jute) 1,045.63 1.59 1,325.68 2.40 wf 3gr&q / Electricity Generation 1,002.54 1,53 1,09353 1.98 UI; 3 M / Metal Products 892.23 1.36 1,324.61 2.39 % U o / Constructions 667.94 1.02 793.55 1.43 Annual Report 2015-16 viut(r aq 3 m fort SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 31 IM, 2016 * JFM-W $1 S/ft 1 Schedules to Balance Sheet as at March 31,2016 Z IEW4 GCrore) t. aM, 3M, 00lpv 9t an &W ffta4 2015-16 f4tr 14i 2014-15 D. Concentration of Deposits, Advances, Exposures and NPAs FY 2015-16 FY2014-15 W) W*&Mita a) Concentration of Deposits frt If W ni i311 t W WT ( Mt 572s85 922.65 Total Deposits of twenty largest depositors (T Crore) l T W9 7M t5 -110 #M IW & 5 Wi W VfWIf I Percentage of 69.43 79.69 deposits of twenty largest depositors to total deposits of the bank wr) Th wftW b) Concentration of Advances "lW#t43q#FUWW3 4 b1 T it 1l) 48434.65 37536.00 Total Advances to twenty largest borrowers (T Crore) ft 5 Tffr tr qt i u 3frt A w tw 73.80 67.82 Percentage of advances to twenty largest borrowers to total advances of the bank c) Concentration of Exposures 5 52057.56 39744.07 Total Exposures to twenty largest borrowers I customers (z Crore) numrW f a d* 4t tq ru TrM ti53.0)---1-2(2139 (1429) (fl8l) (16ma (1219) (1429) 23L1) -274591 Provison f~r. W[0t al00M(29i 2SUNW asnkucalfteF ERE i - - 722 -36 - -7-912 2 4L0 - 154A9 1 763 47 - 1,5 1 ~#*rÉf~ lÉPaÉu uWdha Nmer o cems (dslng figures) AWoa FF