Business Policy Guidelines 2013-14 NGZ

8/13/2019 Business Policy Guidelines 2013-14 NGZ

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BUSINESS POLICY GUIDELINES 2013-14 NORTH GUJARAT ZONE

It gives me immense pleasure in issuing the Business Policy guidelines for North GujaratZone for the Financial Year 20!"#$

North Gujarat Zone has sho%n fairly good performance in the Year 202"!& due to

dedication and commitment of each and every one of you$ I sincerely compliment you all forputting in untiring efforts$ I am convinced that %ith the same 'eal and determination you all%ill strive to ta(e our Zone)s Business to decent levels in all spheres even in the face of stiffcompetition& challenges and hurdles$

*he performance of North Gujarat Zone for the Year 202"! is highlighted in +rief$ *hepolicy guidelines are framed in vie% of the +road corporate perspective and directions %iththe aspiration to scale ne% heights of achievement during F$Y$20!"#$

OVERVIEW OF INDIAN ECONOMY

,s per the ,dvance -stimates released +y the .entral /tatistics ffice 1./& the Indian

economy is estimated to register a gro%th rate of 3$0 per cent in 202"! in terms of G4Pat factor cost at constant 200#"03 prices as against 5$2 per cent in 20"2 and 6$! percent in 200"$ Gro%th in 20"2 and 202"! is on the lo%er side& in the conte7t of thedecadal average of 8$6 per cent during 200!"0# to 202"!$ *he slo%do%n in the gro%th ofthe economy in 202"! is mainly on account of the slo%do%n in the industrial sector %hichis estimated to gro% at !$ per cent in 202"! as against !$3 per cent in 20"2 andsignificantly lo%er gro%th of $9 per cent in agriculture sector on top of a gro%th rate of !$5per cent achieved in 20"2$ /ervices sector is estimated to gro% at a rate of 5$5 per centin 202"!& %hich is lo%er than that achieved in 20"2$ *he slo%do%n in 20"2 and202"! has +een precipitated +y domestic factors as %ell as factors emanating from therest of the %orld& particularly advanced economies and India)s major trading partners$ *hecrisis in the -uro Zone area and slo% gro%th in many other advanced economies haveaffected gro%th in India through dynamic lin(ages$ 4omestic factors& including the

tightening of monetary policy& in order to control inflation and rein in inflationarye7pectations& resulted in slo%ing do%n of investment and gro%th& particularly in theindustrial sector$

, slo% recovery is li(ely to shape up in 20!"# %ith progressive implementation of some ofthe reforms announced since mid"/eptem+er 202$ *hese include& inter alia& phasedderegulation of diesel prices as %ell as a one"time hi(e in +ul( diesel prices& li+erali'ation ofF4I in multi"+rand retail& amendment of the Ban(ing :egulation ,ct and the setting up ofthe .a+inet .ommittee on Investments chaired +y the Prime ;inister to e7pedite decisionson approval


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MEASURES FOR BANING SECTOR IN UNION BUDGET

$ Govt$ to recapitalise 3 Pu+lic /ector Ban(s 1P/Bs +y infusing :s$ #0 +ln inFY#= .apital infusion for FY! fi7ed at :s$ 23 +ln 1B- of :s$ 36 +illion$ Govt

has commited ade>uate capital +e availa+le for Pu+lic /ector Ban(s to meetBasel III re>uirements$

2$ *he Budget proposes to constitute a /tanding .ouncil of -7perts in the ;inistry

of Finance to analyse the international competitiveness of the Indian financialsector& revie% the transaction costs and provide inputs to Government fornecessary action$

!$ *he Govt$ has increased the Budget for :ural ?ousing Fund from :s$ #0 +ln to:s$ 50 +ln in FY# and proposed to start a fund of :s$ 20 +ln to%ards @r+an?ousing Fund as %ell$

#$ *he Budget has allo%ed some FIs to issue ta7"free +onds in FY# up to :s 300+ln to finance infrastructure$

3$ *he Budget has enhanced the refinancing capa+ility of /I4BI to ;/;-s from thecurrent level of :s$ 30 +ln to :s$00 +ln per year$

5$ *he Budget has provided a corpus of :s$ 3 +ln to /I4BI to set up a .redit

Guarantee Fund for factoring= %ith the Factoring ,ct 20 having +een passed+y the Parliament$

8$ *he Budget has introduced a ta7 incentive of an additional :s 0$ mln deductionor interest on housing loan up to :s 2$3 mln in FY#$

9$ Interest su+vention scheme for providing short term crop loans to farmers at 8Ainterest per annum to +e continued in FY#$ ,dditional su+vention of !Aavaila+le for prompt paying farmers$ /o far& the scheme has +een applied toloans e7tended +y pu+lic sector +an(s& ::Bs and cooperative +an(s$ No% it ise7tended to crop loans +orro%ed from private sector scheduled commercial+an(s in respect of loans given %ithin the service area of the +ranch concerned$

6$ *he Finance ;inister also suggested of setting up a %omen +an($ *he +an( is

supposed to lend to mostly %omen and %omen"run +usinesses$ *he financeministry %ill e7tend a capital support of around :s &000 crore to the proposed+an($ It is e7pected to +e operational +y cto+er& 20!$

0$ *he government has decided to constitute a regulatory authority for the roadsector$ Bottlenec(s stalling road projects have +een addressed and !&000 (ms ofroad projects in Gujarat& ;adhya Pradesh& ;aharashtra& :ajasthan and @ttarPradesh %ill +e a%arded in the first si7 months of 20!"#$

$ 4irect .ash *ransfer Benefit to +e e7tended to a large no$ of participants$

Implications of Budgetary Measures for the Banking Industry


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$ Infusion of more capital into the P/@ +an(s is a positive move$ ,s per theestimates of :BI& Indian +an(ing system needs :s 3 trln capital +y FY9 to meetne% Basel"III norms$ Going for%ard& the government %ill either have to providehigher amounts of capital depending upon the state of its fiscal +alancesor consider reducing its shareholding in the P/@ +an(s given the hugere>uirements of capital$

2$ Idea to set up a standing .ouncil of -7perts to study the international

competitiveness of the +an(ing sector is a need of the hour given that no Indian+an( features in the top 30 of the glo+al +an(s$ ,lso& consolidation pressures aremounting for P/Bs given the imperatives of Basel III and the additional injectionof competition to flo% from the issuance of licences to ne% private players$

!$ /teps ta(en to revive the housing& agriculture& infrastructure sectors augur %ell

for the loan +usiness of +an(s during FY#$#$ , permission to raise ta7 free infra +onds to select institutions %ill ease the

pressure from P/@ +an(s %hich have already supported the infra sector in adedicated fashion$ , regulator for roads construction is favoura+le for +an(s$ ,

lot of projects %ould no% see fast"paced e7ecutions$ In turn& it ena+les infracompanies to repay their de+t to +an(s right in time$

3$ -7tension of interest su+sidy is not negative for +an(s& as it %ill not put anypressure on +an(s margins$ *he +an(s %ill get the money from the government$

5$ /etting up of a %omen +an( is a positive measure for the country %hich has one

of the lo%est ran(s in the 202 Gender"Gap :eport of the Corld -conomicForum$

8$ ,s stated earlier& the government has fi7ed a fiscal deficit target of #$9A of G4P

for FY#$ It plans to finance 96$0A of the fiscal deficit through dated mar(et

+orro%ings as against 60$0A last year$ *he govt$ has pegged net mar(et+orro%ings at :s #&9#0 +ln$ Cith redemptions of :s 630 +ln and governmentalso planning to +uy +ac( +onds %orth :s 300 +ln& the gross mar(et +orro%ingsare e7pected to rise to :s 5&260 +ln$ *his +orro%ing plan is much higherthan %hat the mar(ets had e7pected$ In immediate reaction to the Budget& theyield on 0"year +enchmar( paper increased +y 8 +ps$ n the %hole& the mar(et+orro%ings si'e is perceived to +e +ond negative$

9$ *he measure to e7tend the direct transfer +enefit to a large num+er of

participants is positive for the P/@ +an(s as this %ould improve their savingsaccount +alance and financial inclusion parameters$

FUTURE CHALLENGES - MAIN RBI GUIDELINES ON BANINGINDUSTRY

LICENCING

Ban(ing Da%s ,mendment Bill 20 has +een passed +y Parliament$ *hus %e might%ell see .orporates li(e the :eliance& *atas coming out %ith their o%n +an(s$ *huscompetition in the days to come is going to +ecome stiff$


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FINANCIAL INCLUSION

:eserve Ban( of India has called upon the P/Bs to provide +an(ing facilities tovillages having population +elo% 2000$ Government of India has decided to

implement 4irect .ash *ransfer on a pilot +asis in ,nand& Bhavnagar& ;ehsana and4iu districts of our Zone$ *o facilitate its implementation +an(s are re>uired to openone account per household in /ervice ,rea villages$ *his %ould ena+le direct transferof +enefits < su+sidies +y %ay of electronic credit to the accounts of +eneficiaries$ nsimilar lines +an(ing services are envisaged to +e provided to the poor and slumd%ellers of ur+an < metro centres too$ *hus +an(s %ould +e re>uired to open oneaccount per household in ur+an < metro centres also$

ECONOMIC SCENARIO OF GUJARAT

G4P gro%th of Gujarat is +etter compared to that of the country$ Gujarat is the most

preferred destination for investment for the follo%ing reasons E

Business friendly environment$

Best /tate for -conomic Freedom in India +y the Indian thin( tan(& :ajiv Gandhi

Institute for .ontemporary /tudies$ Industry friendly /tate attracting the attention of investors %orld%ide %ith its open

door policy and li+erali'ed economy$ Government thrust H initiatives on the industrial front$

Government < Institution efforts H support are availa+le for e7port promotion of

industrial products and also for ne% industrial ventures$ 2A of Indian e7ports originate from Gujarat and 8A of total industrial

investments in India are in Gujarat$ Deader in several industries such as chemicals& petrochemicals& pharmaceuticals&

soda& dyes& salt and ash$ Cith its i+rant Gujarat /ummit& the /tate has managed to garner ;@s %orth :s$

830 +illion 1@/ J!6$88 +illion in the last t%o years$ *he po%er generation capacity of the state is 9$5A of the country %hich includes

more than 23A of the total gas"+ased installed generation capacity of the country$ Gujarat has ade>uate inter"regional transmission and distri+ution capacity for

evacuation of electricity generated from the po%er stations for meeting the demandof consumers across the state$ Gujarat has !92&80 (ms of transmission anddistri+ution line net%or($

Gujarat has the most developed gas pipeline net%or( in the country and is the only

/tate %here the gas pipeline net%or( is +eing operated +y more than one player& vi'$G,ID& G/PD and GG.D$ Gujarat has a pipeline net%or( of 000 (ms& %hich is 22A of

the countrys pipeline net%or($ *he /tate has already esta+lished itself as an ideal and preferred industrial

investment destination$ Gujarat has a %ell"spread net%or( of +an(ing and financial institutions= the /tate is

in an ideal position to attract investments$ Gujarat is proud of its e7cellent la% and order situation %ith lo% crime rate$ *he

social and communal harmony that is vital for industrial gro%th is the hallmar( ofGujarat society$


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Gujarat has an e7tensive telecom net%or( %ith optic"fi+re technology& cellular

phones& and high speed Internet$

STRUCTURAL CHANGES IN THE ZONE

In order to have +etter management and control& Gujarat perations covering the entire

state %as split into North Gujarat and /outh Gujarat %ith effect from 0$03$202$ ,lso& inorder to have a +etter liaison %ith the state government particularly for tapping government+usiness& a special outfit headed +y an ,sstt General ;anager has +een created inGandhinagar$ In the coming months a :B %ill +e esta+lished in ,hmeda+ad$

HIGHLIGHTS OF STATE BUDGET OF GUJARAT 2013-14

*otal Plan utlay is :s$ crores out of %hich social sector allocation ma(e up#2$0!A of of total plan allocation$

T!" #$%&'()*( )++&,)(#&* )**&.*,"/ #* (!" ./"( )'" ) #"* "+&

P'#&* )**&.*,"/ #* G.5)')( B./"( 6&' FY 2013-14

S",(&'7S"'#," A$&.*( A++&,)("/ 8#* R9:

-nergy #665$0 .rore

Irrigation 226$#3 .rore

Gujarat /tate :oad *ransport .orporation 1G/:*. 3580 .rore

General /ervices !!$56 .rore

*elecom /ervices 863$9 .rore

/cience H *echnology #2!$05 .rore

/pecial ,reas Programme 55#$! .rore

Green ?ouse H .old /torage Facilities 36 .rore

.rop Insurance for Farmers 538 .rore

4istri+ution of free"of"(its to farmers #5 .rore

;etro :ail Project 330 .rore

Ne% *e7tile Policy 1implementation 3# .rore

.hannelising Narmada Caters up to North Gujarat 0 .rore

.onservation of Dions 2 .rore

,c>uisition of land for Narmada canal %or( 85 .rore

/PIP, : H 4 6 .rore

Procuring 00 ne% am+ulances for 09 service 89 .rore

Narmada Caters /cheme 000 .rore

.;s ,a%as /amruddhi Yojana ## .rore

Introducing ne% technology in schools 20 .rore

Industries& .ivil ,viation !033 .rore

/anitation in :ural ,reas 93 .rore

/pecial drive under Kal /anchay 1%ater harvesting .rore

-lectrification of three thousand villages 23 .rore

Cater supply in tri+al areas 90 .rore


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.onstruction of roads and +ridges in tri+al areas 566 .rore

@pgradation of state high%ays 8#5 .rore

Building Ne% ,ngan%adis 6# .rore

;odernisation of police force !0 .rore

Provision of food and civil supplies #85 .rore

/arv /hi(sha ,+hiyaan 1implementation 93# .rore

Funds to Da+our and -mployment department 03! .rore

.onstruction of /tatue of @nity 00 .rore

PERFORMANCE OF NORTH GUJARAT ZONE IN 2012-13

HIGHLIGHTS OF THE PERFORMANCE;31903920133

Y&Y 1>9=4?

TOTAL DEPOSITS

R931>14

Y&Y 1@9@?

SB DEPOSITS R9@314

Y&Y 1193>?

DEMAND DEPOSITSR920

Y&Y 1@9@>?

TOTAL ADVANCES R91@4>

Y&Y 2092?

T&()+ B.#*" (&&/ )( ) +""+ &6 R9 =03>3

,'&'"9 YOY '&(! # 1>9=4? ,&$%)'"/ (&193>? +)( ")'9I* ("'$ T&()+ B.#*" &.' Z&*" )

6&.'(! +)( ")' .( *& !) ,+#$"/ (&

3'/ %(#&*9

D"$)*/ /"%( )'" )( ) +""+ &6 R9 20,'&'" !* YOY '&(! &6 1@9@>?

,&$%)'"/ (& +)( ")' YOY -19=2?9D.'#* (!" ")' Z&*" !) &%"*"/ >>03

C.''"*( ),,&.*( ,&$%)'"/ (& @0> +)(")'9

S)#* B)* D"%( +""+ # R9 @314

,'&'" !* YOY '&(! &6 1193>?

,&$%)'"/ (& %'"#&. ")' YOY 1294?942320 SB ),,&.*( !)" ""* &%"*"/,&$%)'"/ (& 2@@2@1 +)( ")'9

A/)*," )'" )( ) +""+ &6 R9 1@4> ,'&'"

!* ) YOY '&(! &6 2092? ,&$%)'"/ (&+)( ")' YOY '&(! &6 21912?9

T&()+ D"%( (&&/ )( ) +""+ &6 R 31>14,'&'" ) &* 31903920139 YOY '&(! #

1@9@? ,&$%)'"/ (& 139@=? +)( ")'9


7/20

PERFORMANCE OF RETAIL LOAN FACTORIES

4uring the month& # :DFs sanctioned :s$ #0$!3 crores in 22 accounts and dis+ursed:s$ #9$8# crores in 2# accounts$ 4uring the year& total sanctions %ere :s$ #$55crores in 20!0 accounts %hereas :s$ !93$5! crores %ere dis+ursed in 938 accounts$,s of Fe+ruary 20!& :DF ,hmeda+ad %as ran(ed 3thPan India$

PERFORMANCE OF SMELF

4uring the month& 8 /;-DFs sanctioned :s$ ##!$#9 crores in 65 accounts$ 4uring theyear& :s 2680$0! crores %ere sanctioned 1:s$ 899$88 crores fresh in #55 accountsL :s$ 9$25 :CI in !#! accounts$ Five of our /;-s vi'$ Kunagadh 12nd& Kamnagar1!rd& ,nand 13th& Gandhidham 19th and ;ehsana 10th %ere ran(ed among the first0 Pan India as of Fe+ruary 20!$

AGRICULTURE

4uring the year& Zone launched Gold loan campaign from 2#$0#$2 to !0$06$2 andfrom 0#$0!$! to !$0!$! to +oost finance under the scheme$ Gold loan portfolioincreased from :s$ 2$88 crs as on ;arch )2 to :s$ # crores as on ;arch )!$

@nder Green ?ouse project finance has +een e7tended to a+out 230 units as on!$0!$!$

FINANCIAL INCLUSION

*otal Financial Inclusion villages E !08f %hich covered +y opening +ranches E ! .overed +y mo+ile van E 5 .overed +y @ltra small +ranches E 299

In 26# @/B1incl$ 5 covered +y mo+ile van a *otal enrollment done so far E 98#3 + ,ccounts opened so far E 5!8#5 c /mart .ards issued so far E 35!59 d *otal *ransactions carried out E 68#!

IT E-BANING

,verage ,*; hits in the Zone 85 against +an()s 3$

Integration of Ban()s portal %ith .y+er *reasury for payment of :* charges andfees$

TERM DEPOSITSR921=34

Y&Y 22902?

T"'$ D"%( )'" R9 21=34 ,'&'"

!* YOY '&(! 22902? ,&$%)'"/ (&

+)( ")' YOY 1912?9


8/20

NPA MANAGEMENT

NP, cash recovery has +een achieved to the e7tent of :s$#9$99 crs and PCrecovery is :s$!$33 crs as on !$0!$! as against ;ar)! target of :s$93$00 crs and:s$!9$30 crs respectively$

.ash recovery under /,NM,DP is :s$3$93 crs against the accounts eligi+le under/an(alp of :s$ 85$86 crores& i$e$ an achievement of 20$5! A$

4uring the year the aggregate recovery and upgradation figures are :s$ 58$52 crs%ith slippages of :s$ 9$8# crs$ Zone has +een a+le to contain NP, level at :s$ 3#9crores& %hich is 2$68A of ,dvances$

BPR

4uring the year #6 +ranches rolled out to Baroda Ne7t& ta(ing the total num+er of+ranches to 6$ /ales perating model operationalised in ! +ranches ta(ing totalnum+er to 29$ ,verage leads closed per +ranch per day area are a+ove 5$

BRANCH EPANSION

Ce have opened 29 +ranches out of %hich 2 +ranches are in un+an(ed ruralcentres during the current year& ta(ing the total num+er of +ranches in the 'one to##!$

BUSINESS CAMPAIGNS

In /avings Ban( campaign 10$0$20! to !$0!$20!& %e have opened 805accounts %ith amount of :s$ 2# crores= our achievement has +een 8A in openingof accounts and 5!A in amount$

In .urrent account campaign 103$02$! to !$0!$!& 553 accounts %ith amount of:s$ 2# crores %ere opened$

THIRD PARTY PROD!T P"R#ORMA$!"

*hird Party Product Performance is as under :

1. /old 82 (g gold coins& registering an achievement of 65A$2. 4uring the year 19148 Baroda Health policies were sold, percentage

achievement being 1!, over "arch 1# targets$

3. In Bancassurance, collected premium of %s$ 14$&8 crs, an achievement of

8&'$4. .ollected premium of %s$ !#$# crs under (ndia )irst *ife (nsurance, anachievement of #8'$

5. @nder "utual )und, amount invested was %s$ #1 crs, an achievement of &+'$

HR

?: has +een facing challenges li(e attrition& assimilation of young Barodians$ ?enceto address these issues %e have ta(en follo%ing steps E


9/20

$ 4 letters to 4:s %ho have completed t%o years to ta(e up higherresponsi+ilities$

2$ /tarting 4: helpline& an open forum to address issues of ne% recruits$!$ .ustomi'ed integration of training programmes at all levels$#$ -mployees conclaves +y the undersigned %ith the theme ,ttitude&

;otivation& *eam Building and Deadership 4evelopment$

OTHERS

$ 5*?i+rant Gujarat *rade /ho% 20! %as held at Gandhinagar from 9 to !Kanuary 20!$ *he design of our stall %as appreciated +y the visitors thatincluded ministers of state government and e7ecutives of other +an(s$

2$ ne of our creatives titled Oi+rant Ban( of i+rant Gujarat)s i+rant People)+est suited to the occasion %as very much appreciated$ *here %ere not onlytremendous footfalls& +ut %e generated over 230 leads$ n +ehalf of the+an(& our Zone e7ecuted an ;o@ of :s$ 3&000 crores %ith Government ofGujarat as investment intention in industries and mines$

PROFIT

Profit of the 'one has reached :s$0!2 crs +ranches onlyQ$

YoY gro%th of 3A

OTHER DETAILS

REGION AREA-WISE BRANCHES

GEOGRAPHICAL DISTRIBUTION OF AREAS IN GUJARAT

REGIONS M U SU R NGZ

,?;-4,B,4 56 # # ! 90:,KM* 5 25 !! 95;-?/,N, 2 #! #0 63K,;N,G,: 6 23 !# 89,N,N4 !# 36 0#G')*/ T&()+ @= = 132 1> 443


10/20

N&9&6 R"#&* =

N&9&6 D#('#,( ,&"'"/ 1 1 U*#&* T"''#(&'

N&9 &6 L")/ D#('#,( 2 8A*)*/ !"/):CFS B')*,! 1

M#/ C&'%&')(" '9 1S%",#)+#"/ NRI '9 1

BRA$!H"% $"T&OR'

N&9&6 B')*,!" 443

M"('& @=81>9=> ? :U')* =813913 ? :

S"$#-U')* 13282>92 ? :

R.')+ 1>839= ? :

NO9 OF AGM BRANCHES

NO9 OF CM BRANCHES =

LOAN FACTORIES

SMELF : 7RLF : 4

WHOLE

GUJARAT UT

NGZ SGZ

GEOGRAPHICAL AREA6563 33802

86$!5AQ#0#6!

20$5#AQ

POPULATION 8#* +),:309$3 !!8$03

55$29AQ8$#5

!!$82AQ

TOTAL DISTRICTS26

1incl$ ! @*s8

1incl$ @*2

1incl$ 2 @*s


11/20

ATMs (Total 241)

On-Site : 178Off-Site : 63Mobile ATM : 1

Mobile Banking Unit : 1

OTHER OUTLETS

Eten!ion "o#nte$! : 4"#$$en%& "'e!t! : (M)"R "*"! : 4+o,of BSS : 3+o,of FL"" : 1

AB"P ()*(+*,

B$an%'e! .$o.o!e/ to beO.ene/ in 010-13 : 37

2Of 'i%' 08 o.ene/ #.to Ma$13

-as on ,*stMar ()*,.

NO9OF DEBIT CARD HOLDERS 113144> NO9OF HITS PER ATM 1

M-CONNECT USERS 24242

NO9 OF BARODA CONNECT USERSUSERS 10@40

A7C REGISTERED =40>

-as on ,*stMar ()*,.

COST OF DEPOSITS 9@4 YIELD ON ADVANCES 119>

SPREAD =913

-as on ,*st Mar/ ()*,.

BUSINESS PER EMPLOYEE R91294= ,'9 8#*,'")"/ 6'&$ R91093@


12/20

) &* 31903912:

CORPORATE MOTTO

ur ;otto has +een coined to convey the corporate concerns in a crisp and concise manner%hich is easy to remem+er +ut covers all important aspects of +an(ing as under E

BAC TO BASICS

B 6&'" Business gro%th 1to increase the mar(et share

A 6&'" ,sset Ruality 1to +e (ept high

S 6&'" /olvency H Di>uidity 1to +e maintained through proper ,D;

I 6&'" Innovation 1to +e the (ey differentiator

C 6&'" .ustomer .entricity 1to +e the (ey driver

S 6&'" /ystems H Procedures 1to +e continuously updated to support a+ove pillars


13/20

FINANCING IN NORTH GUJARAT ZONE - OPPORTUNITIES CHALLENGES

190 INTRODUCTIONE

Gujarat is the leading industriali'ed state of India$ It houses a num+er of

multinational corporations& large private sector companies& strong pu+lic sectorenterprises and a large num+er of medium and small scale units$ W!#+" !)'#*=? &6 %&%.+)(#&* G.5)')( ,&*('#.(" 21? #* "%&'( )*/ 13? #* I*/#)

#*/.('#)+ %'&/.,(#&*9 Gujarat has strong fundamentals its entrepreneurial

people& e7cellent infrastructure& sta+le governance& +usiness friendly policies andha+it to thin( ahead of times$

*he /tate also +oasts of %orld"class performance in its production of cotton& castor&

cumin& denim& processed diamonds& sponge iron& %all cloc(s etc$ *he sectors that

(eep attracting investments are petrochemicals& chemicals& drugs and

pharmaceuticals& minerals& ceramics& gems and je%ellery& te7tiles& auto and

engineering& I*& po%er and ports$ *he /tate outshines its peers in offering

uninterrupted po%er supply& state"%ide gas grid& rich gas reserves& e7tensive road

and rail net%or( and airports %hich ma(es it conducive for all types of investments

to thrive$ Gujarats infrastructure and socio"political scenario has induced numerousglo+al players to set up their firms here$

Gujarat has ro+ust infrastructure& pragmatic Governance& Glo+al +usiness partners&

conducive Industrial Policies& Business Facilitators& :esources& ?olistic ,pproachto%ards Industrial 4evelopment and Mno%ledge Infrastructures$

Gujarat has made some note%orthy contri+utions to te7tiles& chemicals&

petrochemicals& pharmaceuticals& engineering& oil H gas& ceramics& gems H je%ellery


14/20

and agro +ased products$ ?ome to 200 industrial estates and premier +usinessschools li(e II; and other institutes such as NIF*& -4I& Gujarat also houses morethan 30 engineering institutes and management schools$ /tate ran(s first in India forcorporate investment$ Infrastructure projects are definitely not a ne% phenomenonin Gujarat$ T!" S()(" G&"'*$"*( # +&* )( GSDP &6 R931@0 ,'&'" 20209

290 LEADING INDUSTRIES IN GUJARATE

,gro and food processing industry

*e7tiles H ,pparel

Gems H Ke%ellery

il H gas

?ealthcare

Pharmaceuticals

Biotechnology

-ngineering H ,uto

Information *echnology

Po%er .hemicals

Ports

390 GUJARATS CONTRIBUTION TO ECONOMY

!$ S#*#6#,)*( !)'" #* " ",(&' )*/ %'&/.,(

S9 N&9 S",(&'7%'&/.,( S!)'" 8?:

/oda ash production 69$02 /alt processing 93$0! 4iamond processing 90$0

# Plastic industry 53$03 Petrochemicals 39$05 .hemicals 30$08 Groundnut #2$!9 Pharmaceuticals #2$06 .otton !3$00 Fa+rics !0$0

!$2 P'""*," ),'& #*/.(' ",(&'

S9 N&9 S",(&' S!)'" 8?:

Petroleum products !$202 .hemicals and pharmaceuticals 22$60! -ngineering Industries 2$50# Food H Beverages 6$803 *e7tiles H apparels 5$305 ;ineral +ased industries 2$608 ;etallurgical industries 8$309 thers 5$80


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!$! C&*('#.(#&* (& I*/#)* E,&*&$

S9 N&9 P)'(#,.+)' S!)'" 8?:

/toc( mar(et capitali'ation !0$02 .oastline 22$0! -7ports 2$0

# Fi7ed capital investment 8$03 alue of output 3$55 Net value added +y manufacture #$08 Num+er of factories 0$09 -mployees 6$3

490 VIBRANT GUJARAT GLOBAL INVESTORS SUMMITS 8VGGIS:

*he i+rant Gujarat /ummit has +ecome a model for economic success for many

states$ *his event provides a great opportunity to the /tate to display its strengths&progressive stance& initiatives ta(en to improve governance& investor friendly climateand art H culture of Gujarat$ *he event not only gives local players an opportunity to

interact %ith national and international players& +ut also %ith top Governmentofficials from various departments and sectors$

=90 ZONES EPOSUREE

3$ *he industry"%ise comparison of Ban( vis"S"vis our Zone)s e7posure 1+alance ason 3190392013is as underE

1:s$croresSN&9 I*/.(' E%&.'" 8)+)*,": Z&*" "%&.'" 8?: NPA 8?:

B)* Z&*"

Infrastructure1of %hich -nergy

!90$091366$22

2!33$861530$56

8$#10$!2

0$5910$00

2 .otton te7tile 3!8$5! #36$89 29$# 0$0! ! Food processing 35!$92 9#!$08 3$02 $0 # -ngineering 5!3#$53 922$#6 2$6# $65 3 :u++er H Plastics 26$56 305$35 8$#0 0$# 5 Iron H steel 26$6 5!9$38 3$8# 5$93 8 4rug H Pharma 2359$92 55#$90 23$99 $39 9 .eramic@ @4920 1190>

3$2 -7posure


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P)'(#,.+)'

M)',! 12 M)',! 13 YOY G'&(!8M)'912- M)'9 13

A/9 ? &6(&()+ A/9

A/9 ? &6(&()+A/9

ABS ?

,griculture !92# 2#$69 #09 22$09 238 5$82

/;- !#09 22$25 ##58 2#$8 036 !$08:etail 2#95 5$2# 290# 3$8 !9 2$86

Cholesale 100900 312 2092

3$! *he sector %ise NP, position of the Zone is as underE

:s in crores

=94 CORPORATE GROUPS7COMPANIES NOT BANING WITH BOB

Ce do not have e7posure to the follo%ing %'&6#( $)#*large corporate groups


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:aj(ot .astings& diesel engines& foundry& machine tools2 ,hmeda+ad Ke%ellery& Po%erlooms& pumps& rolling mills! Gandhinagar -lectronic hard%are# Gondal il mill& rice fla(es3 Can(aner .eramics po%erlooms5 ;ehsana Isa+gol& pumps

8 Kamnagar Brass parts& plastic +uttons9 ;or+i .eramic tiles& %all cloc(s6 4horaji il mill& plastic industry0 Bhavnagar :erolling mill& salt ijapur .otton cloth %eaving2 .horyasi 4iesel engine& electric motors& machine tools! /avar(undla Ceights and measures# Malol Po%erlooms

3$5 Focus areas


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R"6.*/ &6 VATpaid +y the unit on purchase of intermediate productuality of customer service play a +ig role for

+usiness development at the +ranches$

Ne%ly opened +ranches do not have any +urden of legacy& vi'$ reconciliation&

recovery etc$ *hey should +e given am+itious targets$

,.: to analy'e the impact of /peciali'ed N:I +ranch$ It should focus on canvassing

fresh accounts$

:egions must carry out an analysis of stagnant +ranches and if need +e contemplate

relocating them$ Potential of rural +ranches remains unutili'ed$ Cith private +an(s planning to ma(e

forays in this segment& %e must also ensure our +usiness does not get drained a%ay$

,s a part of %ell laid out strategy rural +ranches should aim at

Do% .ost /avings& .urrent& :etail *erm 4eposits& /hort term deposits$ Individuals :etail ,ccounts Government Business in terms of resources as %ell as non interest income is

to +e the most thrust area$ Government 4epartments ,ccounts %hich receive+udgetary allocation& such as N:?;& Catershed& N,:-G,& Indira ,%as& :ural4evelopment etc$ are to +e targeted for +usiness ac>uisition in aggressive manner$

Barodane7t +ranches have significant role in ac>uiring ne% +usiness as %ell as+uilding image of our Ban($

Ce are losing ground in N:I +usiness$ ?ence conscious efforts need to +e made toget +ac( our share and also to +ring in ne% N:I +usiness$

Kamnagar :egion should canvass ma7imum +usiness under the recently approved

area specific schemes for Kamnagar 1+rass parts and Kunagadh 1groundnut

C'& "++#* .ross selling is selling of +an()s products < services to an e7isting

customer$ It reduces customer ac>uisition costs& servicing and mar(eting and


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communication costs$ Ce must e7plore selling lia+ility products to Oasset customers)

and vice versa$

*he most vital resource for any organi'ation is the manpo%er$ Kudicious deployment

of this scarce resource is of paramount importance in order to ma7imi'e employee

output$

C'"/#( $&*#(&'#* ?i(e in lending rates and overall slo%do%n increases thepro+a+ility of defaults& resulting in a rise in NP, level$ ?ence our credit monitoring

mechanism has to +e of top order$ /ome of (ey suggestion may +e enumerated as

under

*imely revie% of all credit accounts$ .redit rating e7ercise should +e complete in all eligi+le cases %ith due care$ /trict vigil on the conduct of account as %ell as that of the +orro%ers$ Identifying %ea( < causing concern accounts and ta(ing timely decision$ -nsuring repayment on due dates$ Borro%ers to o+serve financial discipline$ Ruic( decision < disposal of applications$ Being %atchful on PNP, accounts$ .ontrolling slippages$

.ontinuous touch %ith +orro%ers and ma(ing efforts for long term solution to theirre>uirements < pro+lems$

R"()#+ C'"/#( Cith shrin(ing credit appetite of corporates& the focus has shifted to

retail credit$ Individual customers do not pose the ris( of large"scale deterioration in

asset >uality$ :etail sector is e7pected to drive credit gro%th for at least the ne7t fe%

years& as corporate demand continues to stay lo%$ Ce must aggressively canvass

retail loans$ Gold loans %hich are totally secured too should +e aggressively

mar(eted$

A.$"*(#* N&* I*("'"( I*,&$" Non Interest income +arely covers half of

overhead operating e7penses there+y impacting our profita+ility$ Ce must augment

non interest income through aggressively canvassing fore7 +usiness& D. and Ban(

Guarantees& Government Business& *hird Party products and Bancassurance$

STRATEGIES

Increasing our share in e7isting good consortium accounts$

Financing our e7isting customers for e7pansion


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CONCLUSIONS

Gujarat is the most prosperous state in India$ /tate is (')("#,)++ +&,)("/+")/#* #*"($"*( /"(#*)(#&* +)*/ &6 "*('"%'"*".' (!'##* #*/.('#)+()(" !)#* ,&*/.,#" #*/.('#)+ %&+#, %')$)(#, &"'*)*," )*/ '&.(

#*6')('.,(.'"9 *he state outshines its peers in offering .*#*("''.%("/ %&"'.%%+ ()(" #/" ) '#/ '#,! ) '""'" "("*#" '&)/ ')#+ *"(

&' )*/ )#'%&'( %hich ma(e its conducive for investment and +usinessenvironment$ /tate ran(s first in the country in terms of total value of I-;s filledImplementation of projects 1reali'ation are as high as 30A in Gujarat$ /tate ran(edfirst %ith the investment in India$

Doo(ing to the a+ove aspects& %e o+serve that there is huge scope

Business Policy Guidelines 2013-14 NGZ

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