It is about corporate governance.

1. National Institute of Bank
Management
Subject- Corporate Governance & Business Ethics
Dr. Kaushik Mukherjee
Presented By
Group 3
13-03-2024 Group 3 1

2. About The Bank
VISION, STRATEGY AND FUTURE OUTLOOK:
1.Expand the Bank’s Retail, Agriculture and MSME
(RAM)lending profile by leveraging its existing
customer base.
2.Continue to contain funding cost by sourcing
low cost deposits such as CASA.
3.Focus on improving asset quality and containing
NPA levels.
4.Leverage technology to increase cross selling
opportunities, reduce cost and enhance customer
experience.
DIRECTORS’ RESPONSIBILITY STATEMENT:
Financial Statements: Prepared in accordance
with applicable accounting standards (explain any
departures).Accounting Policies: Consistent
application based on RBI guidelines. Reasonable
judgements used for a true and fair view.
Recordkeeping & Safeguards: Proper records
maintained to protect assets and prevent fraud.
Going Concern Basis: Accounts prepared
assuming the bank will continue operating.
Internal Controls: Adequate system established
and functioning effectively.
Legal Compliance: Systems in place to ensure
adherence to all applicable laws.
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3. Q1. The tenets of Corporate Governance followed by the firm
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4. Transparency and
Accountability
• High disclosure standards
and transparency are
emphasized in governance
practices.
• Various Board committees
actively monitor every
aspect of business, ensuring
accountability to
stakeholders and
government.
• Governance practices are
aligned with Government of
India, RBI, SEBI, and other
regulatory requirements.
Risk Management
• Commitment to excellence
through transparency and
accountability extends to
robust risk management
practices.
• Credit Monitoring Tools,
such as Early Warning Signal
(EWS), Credit RFA/Fraud
Examination, CRILC
Reporting, System Asset
Classification (SASCL), SMA
Monitoring, and Collection
Management System (CMS),
are implemented to
minimize credit risks.
• Board oversight ensures a
proactive approach to risk
management and
compliance with sanction
terms and fund use.
Regulatory
Compliance
• Governance practices are
aligned with Government of
India, RBI, SEBI, and other
regulatory requirements.
• The bank ensures
compliance with statutory,
regulatory, and internal
guidelines, as highlighted by
the Chief Compliance Officer
and the Compliance
Department.
Strategic Planning
• The bank's strategic focus
includes expanding Retail,
Agriculture, and MSME
(RAM) lending, sourcing
low-cost deposits like CASA,
improving asset quality, and
leveraging technology for
cross-selling and enhanced
customer experience.
• Strategic initiatives, such as
launching new schemes,
digital platforms, and
collaborations with fintech
companies, are evidence of
the bank's forward-looking
strategic planning.
Ethical Business
Practices
• Corporate Governance is
viewed as crucial for
efficiency, growth, and
investor confidence.
• There is a strong belief in
ethical values and self-
discipline to achieve higher
governance standards.
• CSR activities, such as the
"Star Angel Scheme" and
health sector initiatives,
reflect the bank's
commitment to ethical
business practices and social
responsibility.
13-03-2024 Group 3 4

5. Q2. Strategic aspects – explain how the chosen firm fulfils the
strategic focus while following regulatory norms
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6. Expand Retail, Agriculture, and MSME (RAM) lending.
Focus on sourcing low-cost deposits like CASA.
Improve asset quality and contain NPA levels.
Leverage technology for cross-selling, cost reduction, and enhanced
customer experience.
Enhance Risk Management Systems for long-term sustainability.
Strategic initiatives include launching new schemes, digital platforms, and
collaborations with fintech companies.
Compliance with regulatory norms is a priority, aligning governance practices with
Government of India, RBI, SEBI, and other regulatory requirements.
Note: Overseas business expansion
increasing by 33.30%, reaching Rs.
186,738 crore.
13-03-2024 Group 3 6

7.  Star Suvidha Express Personal Loan Scheme (SSEPL)
 Supply Chain Finance Solution Customer Portal
 Co-Lending Solutions (Cred Avenue and Knight Fintech)
 TReDS Platform Integration with Supply Chain Finance
 Centralized Forex Business Transactions at GIFT City
 GST Sahay App for Invoice Financing and GEM Sahay App Order Based Financing
 Star CPSU Scheme
 Technical Integration for Leads Generation
 Comprehensive Policy on Syndicated Loans, External Commercial Borrowings, and Foreign Currency Loans
 ESG (Environmental Social Governance) Program under Human Resources
 Digital Processing of PMMY MUDRA Loans, Personal Loans, Vehicle Loans, Pensioner Loans, Gold Loans, and
KCC
 Special Schemes for Ethanol Production Capacity Augmentation
 Star Kisan Ghar, Star Bio Energy Scheme, Star Kisan Sahayata Loan in Agriculture Segment
 BOI BIZ Pay App
Business initiatives
13-03-2024 Group 3 7

8.  MissCallPay - Digital Payment Offline Solution
 Digi Locker - Online Service under Digital India Initiative
 Cheque Deposit Kiosks
 ICCW (Interoperable Cardless Cash Withdrawal)
 Regional Language Implementation at ATM
 Inauguration of DBUs in East Singhbhum and Khurda for Digital Banking Products & Services
 E-PLATFORM Solution for Straight Through Origination and Process of Banking Products
 Opening of RBI Floating Rate Saving Bond, 2020 (Taxable)
 Phased Implementation of Electronic Cash Ledger (ECL) in Customs
 Robust Recovery Mechanisms - Intensive Recovery Day, Branch Adalat, Monthly Mega E-auction
 Non-discriminatory and Non-discretionary OTS Schemes - Star Sanjeevani, BOI OTS 2021
 Document Management System (DMS)
 Security Solutions for Cyber Security Framework in Banks
 Tech-driven Credit Monitoring System for Early Warning Signals
 Enterprise-wide Fraud Risk Management Framework
 Star Hunt Scheme for Vertical Specialization
 Creation of Additional National Banking Group and Zonal Offices
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9. Q3. Efficiency issues – explain how the firm ensures high efficiency
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10. Operating Profit
increased by 34.09%,
reaching Rs. 13,393
crore, demonstrating
operational efficiency
Implementation of
various tech-driven
solutions like the E-
PLATFORM project,
Digital Banking Units,
and the Cheque Deposit
Kiosk to streamline
processes
Robust recovery
mechanisms, including
weekly recovery camps
and monthly intensive
recovery campaigns,
indicate a focus on
efficiency in NPA
management
The bank leverages
technology for credit
monitoring, fraud risk
management, recovery
initiatives, and digital
banking solutions
Specific tools like Early
Warning Signal (EWS),
Credit RFA/Fraud
Examination, CRILC
Reporting, and others are
employed for credit
monitoring, ensuring
compliance, minimizing
risks
The bank also implements
initiatives like Digital
Banking Units, Trade
Finance solutions, and HR
digitization for hassle-free
services.
Efficiency is achieved
through high disclosure
standards, transparency,
and active monitoring by
various Board
committees.
Capital Adequacy Ratio stood
at 16.28%, exceeding the
regulatory requirement of
11.5%.
13-03-2024 Group 3 10

11. Q4. Financial reporting – the financial reports that explains
the performance of the firm
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12. Financial
Reporting
Overall Domestic
Business
increased by
5.70%, reaching
Rs. 998,700
crore.
Gross Advances
grew by 9.56%,
reaching Rs.
431,637 crore.
Total deposits
increased by
2.95%, reaching
Rs. 567,063
crore.
Gross Business of
the Bank grew by
9.27%, reaching
Rs. 11,85,438
crore.
Net Profit was
Rs. 4,023 crore,
compared to Rs.
3,405 crore in
the previous
financial year.
Gross NPA
reduced by
17.36%, reaching
Rs. 37,686 crore,
and Net NPA
reduced by
18.25%, reaching
Rs. 8,054 crore
13-03-2024 Group 3 12

13. Q5. Stakeholder management, CSR, and ethics – how does the firm ensure
the fulfilment of values and norms?
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14. "Star Angel Scheme" for
Beti Bachao Beti Padhao
Abhiyan
Financial support of
Rs.1200/- per annum
for education
expenses from
standard I to
graduation for girl
students from
economically weaker
sections.
Health Sector Initiatives
Sponsorship of health
camps for the poor
and underprivileged
Provision of medical
equipment to
hospitals serving
poor patients
Basic Education and Skill
Development
Sponsorship of basic
education
Donation of
education materials
Assistance to
differently-abled and
orphans
Recognition of the
importance of
contributing to society
for a better quality of life
and economic prosperity
High disclosure
standards and
transparency in
governance practices
for stakeholders'
confidence
Strategic focus on
stakeholder value
enhancement
through ethical
business practices
13-03-2024 Group 3 14

15. Q6. Role of senior leaders in the firm in ensuring good governance
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16. Board responsibilities include monitoring overall
bank functioning, policy approval, business reviews,
risk function independence, financial results scrutiny,
NPA management, compliance, customer protection,
financial inclusion, and human resources supervision.
Managing Director & CEO overseeing key aspects like
policy approval, business reviews, and overall bank
functioning.
Leadership involved in the strategic planning and
execution of various initiatives such as digital
banking, CSR activities, and business expansion.
Emphasis on leadership in HR initiatives,
ensuring innovation, decision-making based
on data, and consistent capability building.
Active participation of leaders in fraud risk
management, overseeing compliance with
statutory, regulatory, and internal guidelines.
In-depth involvement of senior leaders in
credit monitoring, NPA management, and
treasury operations to ensure the financial
health of the bank
13-03-2024 Group 3 16

17. Thank You
13-03-2024 Group 3 17