Your Directors have pleasure in presenting the Twenty-Seventh Annual
Report of ICICI Bank Limited (ICICI Bank/the Bank) along with the audited financial
statements for the year ended March 31,2021.
FINANCIAL HIGHLIGHTS
The financial performance for fiscal 2021 is summarised in the
following table:
Rs. in billion, except percentages |
Fiscal 2020 |
Fiscal 2021 |
% change |
Net interest income and non-interest income |
484.23 |
529.12 |
9.3% |
Operating expenses |
216.15 |
215.61 |
(0.2%) |
Core operating profit |
268.08 |
313.51 |
16.9% |
Treasury income |
12.93 |
50.46 |
290.3% |
Operating profit |
281.01 |
363.97 |
29.5% |
Provisions & contingencies (excluding tax) |
140.53 |
162.14 |
15.4% |
Profit before tax |
140.48 |
201.83 |
43.7% |
Profit after tax |
79.31 |
161.93 |
104.2% |
Rs. in billion, except percentages |
Fiscal 2020 |
Fiscal 2021 |
% change |
Consolidated profit before tax and minority interest |
185.89 |
260.28 |
40.0% |
Consolidated profit after tax and minority interest |
95.66 |
183.84 |
92.2% |
APPROPRIATIONS
The profit after tax of the Bank for fiscal 2021 is Rs. 161.93 billion
after provisions and contingencies of Rs. 202.04 billion (including provision for taxes of
Rs. 39.90 billion). The accumulated profit is Rs. 375.20 billion, taking into account the
balance of Rs. 213.27 billion brought forward from the previous year. Your Bank has a
consistent dividend payment history. Your Banks dividend policy is based on the
profitability and key financial metrics, capital position and requirements and the
regulations pertaining to the payment of dividend. The Reserve Bank of India (RBI) through
its circular on Declaration of dividends by banks (Revised) had directed that banks
shall not make any dividend payouts on equity shares from the profits pertaining to fiscal
2020. Accordingly, the Board of Directors did not recommend any dividend for fiscal 2020.
The Board of Directors has recommended a dividend of Rs. 2.00 per equity share for the
year ended March 31, 2021 and has appropriated the disposable profit as follows:
Rs. in billion |
Fiscal 2020 |
Fiscal 2021 |
To Statutory Reserve, making in all Rs. 297.69 billion |
19.83 |
40.48 |
To Special Reserve created and maintained in terms of Section
36(1) (viii) of the Income Tax Act, 1961, making in all Rs. 113.84 |
7.90 |
10.90 |
To Capital Reserve, making in all Rs. 133.80 billion |
3.96 |
1.30 |
To Investment Fluctuation Reserve, making in all Rs. 16.89
billion1 |
6.69 |
(2.49) |
To Revenue and other reserves, making in all Rs. 56.57
billion |
- |
14.922 |
Dividend paid on equity shares3 |
6.45 |
- |
Leaving balance to be carried forward to the next year |
213.28 |
310.09 |
1 Represents an amount transferred to Investment Fluctuation Reserve
(IFR) from disposable profit. As per the RBI guidelines, an amount not less than the lower
of net profit on sale of available-for-sale (AFS) and held-to-maturity (HFT) category
investments during the year or net profit for the year less mandatory appropriations is
required to be transferred to IFR, until the amount of IFR is at least 2% of the HFT and
AFS portfolio. The Bank can draw down balance available in IFR in excess of 2% of its AFS
and HFT portfolio. Accordingly, during fiscal 2021, the Bank has transferred an amount of
Rs. 2.49 billion from IFR to Balance in Profit & Loss Account.
2 Includes transfer of accumulated balance amounting to 0.08
billion maintained in Reserve Fund under Sri Lankan Banking Act No. 30 of 1988 to balance
in Profit & Loss account due to closure of the Branch.
3 Represent dividend declared for previous financial year and paid in
current financial year. RBI through its circular on Declaration of dividends by banks
(Revised) had directed that banks shall not make any dividend payment on equity shares
from the profits pertaining to the financial year ended March 31, 2020. Accordingly, the
Bank did not declare any dividend for fiscal 2020.
The Bank prepares its financial statements in accordance with the
applicable accounting standards, RBI guidelines and other applicable laws/regulations.
RBI, under its risk- based supervision exercise, carries out the risk assessment of the
Bank on an annual basis. This assessment is initiated subsequent to the finalisation,
completion of audit and publication of audited financial statements for a financial year
and typically occurs a few months after the financial year-end. As a part of this
assessment, RBI separately reviews asset classification and provisioning of credit
facilities given by the Bank to its borrowers. The divergences, if any, in classification
or provisioning arising out of the supervisory process are given effect to in the
financial statements in subsequent periods after conclusion of the exercise.
In terms of the RBI circular no. DBR.BP!BC.No.32/21.04.018/ 2018-19
dated April 1,2019, banks are required to disclose the divergences in asset classification
and provisioning consequent to RBIs annual supervisory process in their notes to accounts
to the financial statements, wherever either
(a) the additional provisioning requirements assessed by RBI exceed 10%
of the reported net profits before provisions and contingencies or
(b) the additional gross NPAs identified by RBI exceed 15% of the
published incremental gross NPAs for the reference period, or both. Based on the condition
mentioned in RBI circular, no disclosure on divergence in asset classification and
provisioning for NPAs is required with respect to RBIs supervisory process for fiscal
2020.
SHARE CAPITAL
During the year under review, the Bank allotted 24,232,771 equity
shares of Rs. 2.00 each pursuant to exercise of stock options under the Employee Stock
Option Scheme.
On August 15, 2020, allotment of 418,994,413 equity shares of face
value Rs. 2.00 each was made to eligible qualified institutional buyers at the issue price
of Rs. 358.00 per equity share, i.e., at a premium of Rs. 356.00 per equity share.
For details refer to Schedule 1 of the financial statements.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Pursuant to Section 186(11) of the Companies Act, 2013, the provisions
of Section 186 of the Companies Act, 2013, except sub-section (1), do not apply to a loan
made, guarantee given or security provided by a banking company in the ordinary course of
business. The particulars of investments made by the Bank are disclosed in Schedule 8 of
the financial statements as per the applicable provisions of the Banking Regulation Act,
1949.
SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES
There is no change in the subsidiaries and associates of the Bank
during fiscal 2021. The Bank does not have any joint venture company. As at March 31,
2021, your Bank had following subsidiaries (16) and associate (8) Companies:
Name of the Subsidiary Company |
% of shares held |
ICICI Bank UK PLC |
100 |
ICICI Bank Canada |
100 |
ICICI Securities Limited |
75.00 |
ICICI Securities Holding Inc.1 |
100 |
ICICI Securities Inc.2 |
100 |
ICICI Securities Primary Dealership Limited |
100 |
ICICI Venture Funds Management Company Limited |
100 |
ICICI Home Finance Company Limited |
100 |
ICICI Trusteeship Services Limited |
100 |
ICICI Investment Management Company Limited |
100 |
ICICI International Limited |
100 |
ICICI Prudential Pension Funds Management Company Limited3 |
100 |
ICICI Prudential Life Insurance Company Limited |
51.37 |
ICICI Lombard General Insurance Company Limited |
51.88 |
ICICI Prudential Asset Management Company Limited |
51.00 |
ICICI Prudential Trust Limited |
50.80 |
1 ICICI Securities Holding Inc. is a wholly owned subsidiary o^ ICICI
Securities Limited.
2 ICICI Securities Inc. is a wholly owned subsidiary of ICICI
Securities Holding Inc.
3 ICICI Prudential Pension Funds Management Company Limited is a wholly
owned subsidiary of ICICI Prudential Life Insurance Company Limited.
Name of the Associate Company |
% of shares held |
I-Process Services (India) Private Limited |
19.00 |
NIIT Institute of Finance Banking and Insurance Training
Limited |
18.79 |
ICICI Merchant Services Private Limited |
19.01 |
India Infradebt Limited |
42.33 |
Arteria Technologies Private Limited |
19.98 |
Rajasthan Asset Management Company Private Limited# |
24.30 |
OTC Exchange of India Limited# |
20.00 |
Falcon Tyres Limited# |
26.39 |
# These companies are not considered as associates in the financial
statements, in accordance with the provisions of /4S 23 on Accounting for
Investments in Associates in Consolidated Financial Statements.
HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE
COMPANIES AND THEIR CONTRIBUTION TO THE OVERALL PERFORMANCE OF THE COMPANY
The performance of subsidiaries and associates and their contribution
to the overall performance of the Bank as on March 31, 2021 is given in "Consolidated
Financial Statements of ICICI Bank Limited - Schedule 18 - Note 12 - Additional
information to consolidated accounts" of this Annual Report. A summary of key
financials of the Banks subsidiaries is also given in "Statement Pursuant to Section
129 of Companies Act, 2013" of this Annual Report.
The highlights of the performance of key subsidiaries are given as a
part of Managements Discussion & Analysis under the section "Consolidated
financials as per Indian GAAP".
The Bank will make available separate audited financial statements of
the subsidiaries to any Member upon request. These documents/details will be available on
the Banks website at https://www.ICICIbank.com/aboutus/ annual.html and will also be
available for inspection by any Member or trustee of the holder of any debentures of the
Bank. As required by Accounting Standard 21 (AS-21) issued by the Institute of Chartered
Accountants of India, the Banks consolidated financial statements included in this Annual
Report incorporate the accounts of its subsidiaries and other consolidating entities.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS
There are no significant and/or material orders passed by the
regulators or courts or tribunals impacting the going concern status or future operations
of the Bank.
UPDATE ON COVID-19
The COVID-19 pandemic has impacted most economies and banking systems
globally, including India. The nationwide lockdown in April-May 2020 substantially
impacted economic activity. The easing of lockdown measures subsequently led to gradual
improvement in economic activity and progress towards normalcy. For the banking sector,
these developments resulted in lower demand for loans and fee-based services and
regulatory measures like moratorium on payment of dues and standstill in asset
classification to mitigate the economic consequences on borrowers. It also resulted in
increase in provisioning reflecting higher actual and expected additions to nonperforming
loans following the cessation of moratorium and asset classification standstill. Pursuant
to the second wave of COVID-19 pandemic since March 2021, the number of new cases has
increased significantly across India in both urban and rural areas and it has resulted in
re-imposition of localised/regional lock-down measures in various parts of the country.
In these challenging times, the Banks employees have shown strong
resilience and the ability to adapt to changing circumstances. The health and well-being
of employees and customers and business continuity is of utmost importance to the Bank.
The Bank formed a quick response team to take steps to protect the health of the employees
and provide essential services to the customers. About 97% of the branches were functional
with reduced working hours during the national lockdown in fiscal 2021. The branches were
staffed based on the customer footfalls and employees were rostered. Excluding the
employees working at the branches and some of the team members from Operations and IT, the
majority of the employees continue to work from home. The Bank continues to do a thorough
risk assessment for augmenting IT security controls and curb any gaps and potential
threats in the current working arrangement.
The Bank continues to see opportunities to grow and strengthen its
franchise and it is using these opportunities to further accelerate the digital journey of
the Bank and its customers. In March 2020, the Bank launched a comprehensive digital
banking platform called ICICI STACK which offers nearly 500 services to ensure
uninterrupted banking experience to retail, business banking, SME and corporate customers.
Other major digital initiatives include WhatsApp banking, Video KYC for digital onboarding
of customers, cardless cash withdrawal at ATMs and a mobile banking app, iMobile Pay, that
extends the mobile banking facility to non-ICICI Bank customers. We have launched digital
products like InstaBIZ and supply chain financing solutions for our small business
customers including APIs from the API Banking Portal to integrate various payment and
product solutions. Our digital offerings for large corporates and their ecosystems include
digital platforms for domestic and international trade and industry specific solutions
across the value chain. The Bank is seeing increased utilisation of its digital channels
and platforms by its customers and has ensured that the IT infrastructure is able to
handle any unexpected surge in digital transactions. The Bank continues to monitor the
situation in the country and would take necessary steps to ensure safety of its people and
continuity of its business operations. In its effort to support the nation in its fight
against the COVID-19 outbreak, the ICICI Group has committed a sum of Rs. 1.00 billion,
including Rs. 800.0 million to the PM Cares Fund. ICICI Bank and ICICI Foundation have
worked actively to assist various agencies including hospitals, the police, paramilitary
forces, municipalities and government bodies in their tireless efforts to safeguard the
citizens of the country.
Going forward, economic activity will depend on the trajectory of the
COVID-19 pandemic, the progress of the vaccination programme and the restrictions on
activity and the period for which they continue. A prolonged period of economic weakness
caused by the second wave of the pandemic and uncertainty regarding normalisation could
continue to impact banking sector loan growth, revenues, margins, asset quality and credit
costs in fiscal 2022. In view of the continuing uncertainties and rising risks in the
operating environment, the Bank would continue to focus on ensuring a resilient balance
sheet and maintaining strong capital levels. The Banks capital and liquidity position is
strong and would continue to be a focus area for the Bank during this period.
MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE
BANK
There are no material changes and commitments affecting the financial
position of the Bank which have occurred between the end of the financial year of the Bank
to which the financial statements relate and the date of this Report. For the impact of
COVID-19 on the performance of the Bank and the Group, refer "note no. 59 of schedule
18 - Notes forming part of the accounts" of financial statements of the Bank and
"note no. 19 of schedule 18 - Notes forming part of the accounts" of
consolidated financial statements of the Bank.
DIRECTORS AND OTHER KEY MANAGERIAL PERSONNEL
Changes in the composition of the Board of Directors and other Key
Managerial Personnel
The Members at the last Annual General Meeting (AGM) held on August 14,
2020 approved the re-appointment of Vishakha Mulye as a wholetime Director (designated as
Executive Director) for a period of five years effective from January 19, 2021, subject to
the approval of Reserve Bank of India (RBI). RBI through its letter dated January 8, 2021
approved the re-appointment of Vishakha Mulye as Executive Director of the Bank for a
period of three years effective from January 19, 2021.
Further, the Members at the last AGM approved the re-appointment of
Girish Chandra Chaturvedi as an Independent Director of the Bank for a period of three
years effective from July 1, 2021. The Members also approved the re-appointment of Girish
Chandra Chaturvedi as Non-Executive (part-time) Chairman of the Bank for a period of three
years effective from July 1, 2021, subject to the approval of RBI. RBI through its letter
dated June 8, 2021 approved the re-appointment of Girish Chandra Chaturvedi as
Non-Executive (part-time) Chairman of the Bank for a period of three years with effect
from July 1,2021.
RBI through its letter dated December 22, 2020 communicated its
approval for the appointment of Sandeep Batra as Executive Director of the Bank for a
period of three years from the date of his taking charge as Executive Director. The Board
of Directors through a circular resolution dated December 23, 2020 recorded December 23,
2020 as the effective date of appointment and taking charge by Sandeep Batra as Executive
Director of the Bank.
The Board of Directors on April 24, 2021 based on the recommendation of
the Board Governance, Remuneration & Nomination Committee approved the re-appointment
of Anup Bagchi as a wholetime Director (designated as Executive Director) for a period of
five years or date of retirement, whichever is earlier, effective from February 1, 2022,
subject to the approval of Members and RBI. The re-appointment is being proposed in the
Notice of the forthcoming AGM through item no.10.
In terms of Section 203(1) of the Companies Act, 2013, Sandeep Bakhshi,
Managing Director & CEO, Anup Bagchi, Executive Director, Sandeep Batra, Executive
Director, Vishakha Mulye, Executive Director, Rakesh Jha, Chief Financial Officer and
Ranganath Athreya, Company Secretary are the Key Managerial Personnel of the Bank.
Declaration of Independence
All Independent Directors have given declarations that they meet the
criteria of independence as laid down under Section 149 of the Companies Act, 2013 as
amended (the Act) and Regulation 16 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, (SEBI Listing Regulations)
which have been relied on by the Bank and were placed at the Board Meeting held on April
24, 2021. In the opinion of the Board, the Independent Directors fulfil the conditions
specified in the Act and the SEBI Listing Regulations and are independent of the
Management.
Retirement by rotation
In terms of Section 152 of the Companies Act, 2013, Sandeep Bakhshi
would retire by rotation at the forthcoming AGM and is eligible for re-appointment.
Sandeep Bakhshi has offered himself for re-appointment.
AUDITORS
Statutory Auditors
M/s Walker Chandiok & Co LLP Chartered Accountants were
re-appointed as auditors by the Members at their Twenty-Sixth Annual General Meeting (AGM)
held on August 14, 2020 to hold office till conclusion of the Twenty-Seventh AGM. M/s
Walker Chandiok & Co LLP, Chartered Accountants, have been auditors of the Company for
three consecutive years, which is the maximum term for statutory auditors of banking
companies as per the circular issued by Reserve Bank of India (RBI) on Guidelines for
Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial
Banks (excluding RRBs), UCBs and NBFCs (including HFCs), dated April 27, 2021. Hence they
would be retiring at the conclusion of the forthcoming AGM. The Audit Committee and the
Board of Directors have placed on record their appreciation of the professional services
rendered by M/s Walker Chandiok & Co LLP during their association with the Company as
its auditors.
As per the above-mentioned RBI guideline, the statutory audit needs to
be conducted under joint audit of a minimum of two audit firms with effect from FY2022.
Accordingly, as recommended by the Audit Committee, the Board has proposed the appointment
of M/s MSKA & Associates, Chartered Accountants and M/s Khimji Kunverji & Co LLP,
Chartered Accountants as Joint Statutory Auditors for the year ending March 31, 2022
(fiscal 2022). Their appointment has been approved by RBI on July 8, 2021. The appointment
of the auditors is being proposed to the Members in the Notice of the forthcoming AGM
through item nos. 4 and 5.
There are no qualifications, reservation or adverse remarks made by the
current statutory auditors in the audit report.
Secretarial Auditors
The Board appointed M/s. Parikh Parekh & Associates, a firm of
Company Secretaries in Practice to undertake the Secretarial Audit of the Bank for fiscal
2021. The Secretarial Audit Report is annexed herewith as Annexure A. There are no
qualifications, reservation or adverse remark or disclaimer made by the auditor in the
report save and except disclaimer made by them in discharge of their professional
obligation.
The Annual Secretarial Compliance Report for fiscal 2021 is available
on the website of the Bank at www.ICICIbank.com and on the websites of the stock exchanges
i.e. BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at
www.nseindia.com.
Maintenance of Cost Records
Being a Banking Company, the Bank is not required to maintain cost
records as specified by the Central Government under Section 148(1) of the Companies Act,
2013.
Reporting of Frauds by Auditors
During the year under review, there were no instances of fraud reported
by the statutory auditors, branch auditors and secretarial auditor under Section 143(12)
of the Companies Act, 2013 to the Audit Committee or the Board of Directors.
PERSONNEL
The statement containing particulars of employees as required under
Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given in an Annexure
and forms part of this report. In terms of Section 136(1) of the Companies Act, 2013, the
annual report and the financial statements are being sent to the Members excluding the
aforesaid Annexure. The Annexure is available for inspection and any Member interested in
obtaining a copy of the Annexure may write to the Company Secretary of the Bank.
INTERNAL CONTROL AND ITS ADEQUACY
The Bank has adequate internal controls and processes in place with
respect to its financial statements which provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements. These
controls and processes are driven through various policies, procedures and certifications.
The processes and controls are reviewed periodically. The Bank has a mechanism of testing
the controls at regular intervals for their design and operating effectiveness to
ascertain the reliability and authenticity of financial information.
DISCLOSURE UNDER FOREIGN EXCHANGE MANAGEMENT ACT, 1999
The Bank has obtained a certificate from its statutory auditors that it
is in compliance with the Foreign Exchange Management Act, 1999 provisions with respect to
investments made in its consolidated subsidiaries and associates during fiscal 2021.
RELATED PARTY TRANSACTIONS
The Bank has a Board-approved Group Arms Length Policy which requires
transactions with the group companies to be at arms length. All the related party
transactions between the Bank and its related parties, entered during the year ended March
31, 2021, were on arms length basis and were in the ordinary course of business. There
were no related party transactions to be reported under section 188(1) of the Companies
Act 2013, in Form No. AOC-2, pursuant to Rule 8(2) of the Companies (Accounts) Rules,
2014.
All related party transactions as required under Accounting Standard
AS-18 are reported in note no. 50 of schedule 18 - Notes to Accounts of standalone
financial statements and note no. 2 of schedule 18 - Notes to Accounts of consolidated
financial statements of the Bank.
The Bank has a Board-approved policy on Related Party Transactions,
which has been disclosed on the website of the Bank and can be viewed at
(https://www.ICICIbank. com/aboutus/other-policies.page?#toptitle).
ANNUAL RETURN
The Annual Return in Form No. MGT-7 will be hosted on the website of
the Bank at (https://www.ICICIbank.com/ aboutus/annual.html).
BUSINESS RESPONSIBILITY REPORTING
The Business Responsibility Report as stipulated under Regulation 34 of
the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 will be hosted on the Banks website at
(https://www.ICICIbank.com/aboutus/annual.html). Any Member interested in obtaining a copy
of the Report may write to the Company Secretary of the Bank.
The Bank has been releasing the Environmental, Social and Governance
Report since fiscal 2020. The report for fiscal 2021 will be hosted on the Banks website
at (https://www.ICICIbank.com/aboutus/annual.html).
INTEGRATED REPORTING
The Bank has adopted the principles of the International Integrated
Reporting Framework as developed by the International Integrated Reporting Council (IIRC)
in its Annual Report since fiscal 2019. For accessing the Report for fiscal 2021, please
refer to the Integrated Report section of the Annual Report 2020-21.
RISK MANAGEMENT FRAMEWORK
The Banks risk management framework is based on a clear understanding
of various risks, disciplined risk assessment and measurement procedures and continuous
monitoring. The Board of Directors has oversight on all the risks assumed by the Bank.
Specific Committees have been constituted to facilitate focused oversight of various
risks, as follows:
The Risk Committee of the Board inter alia reviews risk
management policies of the Bank pertaining to credit, market, liquidity, operational and
outsourcing risks and business continuity management. The Committee also reviews the Risk
Appetite and Enterprise Risk Management frameworks, Internal Capital Adequacy Assessment
Process (ICAAP) and stress testing. The stress testing framework includes a range of
Bank-specific market (systemic) and combined scenarios. The ICAAP exercise covers the
domestic and overseas operations of the Bank, banking subsidiaries and non-banking
subsidiaries. The Committee reviews setting up of limits on any industry or country,
migration to the advanced approaches under Basel II and implementation of Basel Ill and
the activities of the Asset Liability Management Committee. The Committee reviews the
level and direction of major risks pertaining to credit, market, liquidity, operationaI,
reputation, technology, information security, compliance, group and capital at risk as a
part of the risk dashboard. In addition, the Committee has oversight on risks of
subsidiaries covered under the Group Risk Management Framework. The Risk Committee also
reviews the Liquidity Contingency Plan for the Bank and the various thresholds set out in
the Plan.
The Credit Committee of the Board, apart from sanctioning credit
proposals based on the Banks credit approval authorisation framework, reviews
developments in key industrial sectors (along with exposure to these sectors), the Banks
exposure to large borrower accounts and borrower groups. The Credit Committee also reviews
major credit portfolios, non-performing loans, accounts under watch, overdues, incremental
sanctions etc.
The Audit Committee of the Board provides direction to and
monitors the quality of the internal audit function, oversees the financial reporting
process and also monitors compliance with inspection and audit reports of RBI, other
regulators and statutory auditors.
The Asset Liability Management Committee provides guidance for
management of liquidity of the overall Bank and management of interest rate risk in the
banking book within the broad parameters laid down by the Board of Directors/Risk
Committee.
Summaries of reviews conducted by these Committees are reported to the
Board on a regular basis.
Policies approved from time to time by the Board of
Directors/Committees of the Board form the governing framework for each type of risk. The
business activities are undertaken within this policy framework. Independent groups and
subgroups have been constituted across the Bank to facilitate independent evaluation,
monitoring and reporting of various risks. These groups function independently of the
business groups/subgroups.
The Bank has dedicated groups, namely, the Risk Management Group,
Compliance Group, Corporate Legal Group, Internal Audit Group and the Financial Crime
Prevention & Reputation Risk Management Group, with a mandate to identify, assess and
monitor all of the Banks principal risks in accordance with well-defined policies and
procedures. The Risk Management Group is further organised into Credit Risk Management
Group, Market Risk Management Group, Operational Risk Management Group and Information
Security Group. The Chief Risk Officer (CRO) reports to the Risk Committee constituted by
the Board which reviews risk management policies of the Bank. The CRO for administrative
purposes reports to an Executive Director in the Bank. The above mentioned groups are
independent of all business operations and coordinate with representatives of the business
units to implement the Banks risk management policies and methodologies.
The Internal Audit Group acts as an independent entity and is
responsible to evaluate and provide objective assurance on the effectiveness of internal
controls, risk management and governance processes within the Bank and suggest
improvements. The Internal Audit Group maintains appropriately qualified personnel to
fulfill its responsibilities. The Internal Audit and Compliance groups are responsible to
the Audit Committee of the Board.
INFORMATION REQUIRED UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The Bank has a policy against sexual harassment and a formal process
for dealing with complaints of harassment or discrimination. The said policy is in line
with the requirements of The Sexual Harassment of Women at the Workplace (Prevention,
Prohibition & Redressal) Act, 2013. The Bank has complied with provisions relating to
the constitution of Internal Complaints Committee under the said Act.
Pursuant to the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the details pertaining to
number of complaints during the year has been provided below:
a. number of complaints filed during the financial year: 33
b. number of complaints disposed of during the financial year: 33
c. number of complaints pending1 at end of the financial
year: Nil
1 All complaints received during fiscal 2021 have been closed within
the applicable turnaround time (90 days).