Non-Performing Assets: in Bank of India

CTRLSOFT
NON-PERFORMING
ASSETS
IN BANK OF INDIA
S. INDHUMATHI
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Year ender 2018: NPAs of Indian
banks surged past Rs 10 trillion
Not surprisingly, the gross NPA of all listed banks jumped to Rs 10.25 trillion in the March quarter, from
Rs 8.86 trillion in the December 2017 quarter
In the March 2018 quarter, the gross non-performing assets (NPAs) of Indian banks surged past
Rs 10 trillion. This surprised many observers, if not the bankers, as the true extent of bad debt
was not evident before the Reserve Bank of India (RBI) arm-twisted lenders to disclose whatever
was hidden under the carpet. There are many economic reasons for this NPA pile-up, but the
numbers ballooned after the central bank’s February 12 circular. The circular said if a loan is not
serviced for 90 days, it is in default and recovery proceedings can be started against it
The March level was roughly 11.5 per cent of the total loan book. Adding restructured, and loans
suspected to be falling into NPA, the share could be 13-14 per cent of the loan book.
RBI’s financial stability report says the gross NPA ratios of the banking system could reach
12.2 per cent of the loan book by March 2019. The good news is that the gross NPAs showed
a downward trend in June and then in September quarter . This is largely because of the strict
Insolvency and Bankruptcy Code, or the fear of it. Bankers now believe the recognition part
of NPA is over, and the recovery needs to begin.
Profit, losses, GNPAs of Public Sector Banks
Source:
(1) https://m.economictimes.com
(2) https://www.business-standard.com
(3) https://rbi.org.in
(4) https://starconnectcbs.bankofindia.com
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Asset Quality Review (AQR) carried-out in 2015 for clean and fully provisioned bank
balance-sheets revealed high incidence of NPAs. Expected losses on stressed loans, not
provided for earlier under flexibility given to restructured loans, were reclassified as NPAs
and provided for. PSBs initiated cleaning-up by recognising NPAs and provided for expected
losses. The gross NPA ratio for Public Sector Banks (PSBs) as a category is 14.6% in the
financial year (FY) 2017-18, as per Reserve Bank of India (RBI) data. In the last 25 financial
years, the gross NPA ratio for PSBs was highest in FY 1993-94 at 24.8% and was also higher
in six other financial years.
Bank-wise details of gross NPAs as of March 2018, and operating profit, provision done and
net profit/loss in FY 2017-18, are given below.
Bank-wise details of gross NPAs as of March 2018, and operating profit, provision done and
net profit/loss in FY 2017-18, are given below.
Amounts in crore Rs.
S. No. Bank As on FY 2017-18 **

31.3.2018 *
Gross NPA Operating Provisioning Net profit

ratio (%) profit done (amounts with a
minus sign are
losses) ***
1 Allahabad Bank 16.0 3,438 8,113 -4,674
2 Andhra Bank 17.1 5,361 8,774 -3,413
3 Bank of Baroda 12.3 12,006 14,437 -2,432
4 Bank of India 16.6 7,139 13,183 -6,044
5 Bank of Maharashtra 19.5 2,191 3,337 -1,146
6 Canara Bank 11.8 9,548 13,770 -4,222
7 Central Bank of India 21.5 2,733 7,838 -5,105
8 Corporation Bank 17.4 3,950 8,004 -4,054
9 Dena Bank 22.0 1,171 3,094 -1,923
10 IDBI Bank Limited 28.0 7,905 16,142 -8,238
11 Indian Bank 7.4 5,001 3,742 1,259
12 Indian Overseas Bank 25.3 3,629 9,929 -6,299
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13 Oriental Ba1nk of 17.6 3,703 9,575 -5,872
Commerce
14 Punjab & Sind Bank 11.2 1,145 1,889 -744
15 Punjab National Bank 18.4 10,294 22,577 -12,283
16 State Bank of India 10.9 59,511 66,058 -6,547
17 Syndicate Bank 11.5 3,864 7,087 -3,223
18 UCO Bank 24.6 1,334 5,771 -4,436
19 Union Bank of India 15.7 7,540 12,787 -5,247
20 United Bank of India 24.1 1,025 2,479 -1,454
21 Vijaya Bank 6.3 3,098 2,371 727

Sources: * RBI (global operations, provisional data for Mar-2018)
Banks
While banks have posted operating profits, their net losses are primarily on account of
continuing ageing provision for NPAs recognised as a result of AQR initiated in 2015 and
subsequent transparent recognition by banks.
This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a
question in Rajya Sabha today. (PIB)
Measures to Recover Loan Amount from NPAs
Asset Quality Review (AQR) carried-out in 2015 for clean and fully Provisioned Bank
Balance-Sheets revealed high incidence of Non-Performing Assets (NPAs). Expected losses
on stressed loans, not provided for earlier under flexibility given to restructured loans, were
reclassified as NPAs and provided for. Public Sector Banks (PSBs) initiated cleaning-up by
recognising NPAs and provided for expected losses. As a result of transparent recognition of
stressed assets as NPAs, the aggregate Gross NPAs of PSBs (as per Reserve Bank of India
(RBI) data on global operations), have increased from Rs. 2,79,016 crore, as on 31.3.2015 to
Rs. 8,95,601 crore, as on 31.3.2018 (provisional data).
As per RBI inputs, list of the banks having NPAs of Rs. 100 crore or more is at Annexure.
A number of measures have been taken to recover loan amount from NPAs, and wilful
defaulters. As a result, PSBs recovered an amount of Rs. 1,58,259 crore, during the financial
years 2015-16 to 2017-18. To avoid recurrence and for stringent recovery, the Insolvency and
Bankruptcy Code, 2016 (IBC) has been enacted to create a Unified Framework for resolving
insolvency and bankruptcy matters. The Banking Regulation Act, 1949 was amended, to
provide for authorisation to RBI to issue directions to banks to initiate the insolvency
resolution process under IBC. Under this, by adopting a creditor-in-saddle approach, with the
interim resolution professional taking over management of affairs of Corporate Debtor at the
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outset, the incentive to resort to abuse of the legal system was taken away. This coupled with
debarment of wilful defaulters and persons associated with NPA accounts from the resolution
process, has effected a fundamental change in the creditor-debtor relationship. Further, as per
RBI’s directions, cases have been filed under IBC in the National Company Law Tribunal
(NCLT) in respect of 39 large defaulters, amounting to about Rs. 2.69 lakh crore funded
exposure (as of December 2017). In addition, recapitalisation of PSBs, announced and
initiated by the Government, has enabled upfront provisioning, easing apprehensions in
actively pursuing resolution.
Further, the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (SARFAESI Act) has been amended for faster recovery with a
provision for three months imprisonment in case the borrower does not provide asset details
and for the lender to get possession of mortgaged property within 30 days. Also, six new
Debts Recovery Tribunal have been established to expedite recovery.
In addition, under the PSB Reforms Agenda announced by the Government, PSBs have
committed to strengthen recovery mechanism by setting-up Stressed Asset Management
Verticals for focussed recovery, clean and effective post-sanction follow-up on large-value
accounts by tying up with Agencies for Specialised Monitoring for loans of Rs. 250 crore and
above, and strict segregation of pre- and post-sanction roles for enhanced accountability.
To reduce incidence of default on account of and to effect recovery from wilful defaulters, as
per RBI’s instructions, wilful defaulters are not sanctioned any additional facilities by banks
or financial institutions, their unit is debarred from floating new ventures for five years, and
lenders may initiate criminal proceedings against them, wherever necessary. As per data
reported by PSBs, as on 31.3.2018, 2,323 FIRs have been registered against wilful defaulters,
8,835 suits have been filed for recovery from them, and action has been initiated under the
SARFAESI in respect of 7,300 cases of wilful defaulters. Securities and Exchange Board of
India (SEBI) Regulations have been amended to debar wilful defaulters and companies with
wilful defaulters as promoters/directors from accessing capital markets to raise funds.
Further, the Insolvency and Bankruptcy Code has been amended to debar wilful defaulters
from participating in the insolvency resolution process.
Annexure
List of banks with gross NPAs with outstanding amount greater than Rs. 100 crore as
on 31.3.2018 (provisional data), based on off-site returns for global operations
submitted by banks to RBI
1.Allahabad Bank
2.Andhra Bank
3.Axis Bank Limited
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4.Bank of Baroda
5.Bank of India
6.Bank of Maharashtra
7.Canara Bank
8.Central Bank of India
9.Cooperatieve Rabobank U.A.
10.
Corporation Bank
11.
Credit Agricole Corporate and Investment Bank
12.
DBS Bank Ltd.
13.
Dena Bank
14.
Deutsche Bank AG
15.
Federal Bank Ltd.
16.
HDFC Bank Ltd.
17.
Hongkong and Shanghai Banking Corpn.Ltd.
18.
ICICI Bank Limited
19.
IDBI Bank Limited
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20.
IDFC Bank Limited
21.
Indian Bank
22.
Indian Overseas Bank
23.
IndusInd Bank Ltd.
24.
Jammu & Kashmir Bank Ltd.
25.
Karnataka Bank Ltd.
26.
Karur Vysya Bank Ltd.
27.
Kotak Mahindra Bank Ltd.
28.
Lakshmi Vilas Bank Ltd.
29.
Oriental Bank of Commerce
30.
Punjab and Sind Bank
31.
Punjab National Bank
32.
South Indian Bank Ltd.
33.
Standard Chartered Bank
34.
State Bank of India
35.
Syndicate Bank
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36.
The Royal Bank of Scotland Plc
37.
UCO Bank
38.
Union Bank of India
39.
United Bank of India
40.
Vijaya Bank
41.
Yes Bank Ltd.
This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a
question in Rajya Sabha today.
Terms and Conditions for

Bank of India StarConnect (Core Banking) Services
Internet / SMS / WAP/ Tele Banking
(The Customer accepts and unconditionally agrees to abide by the following terms and conditions.)
01. Definitions:
In this document the following words and phrases shall have the meanings as set below unless the
context indicates otherwise:
"Account(s)" refers to the Customer's Savings/Current Account and/ or credit card account and/ or
home loan account and/ or automobile loan account and/ or consumer durable loan account and/ or
demat account and/ or any other type of account (each an "Account" and collectively "Accounts", so
maintained with Bank of India which are eligible Account(s) for operations through the use
of StarConnect (Core Banking) Services.
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“Alerts” refers to the event-based message sent to the User, on his mobile phone or his email
address or through Fax, subject to the User’s subscribing to that event-based message.
"Bank” means Bank of India, a Banking Company constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 having its registered office at “ Star House”
Bandra Kurla Complex, Bandra (East), Mumbai 400 051, India including any branch office, thereof.
“Customer” means a person including individual(s), Company, Partnership Firm, Trust, HUF,
Club/Association etc…who has an Account with the Bank and who has been authorised by the Bank
to avail of the StarConnect (Core Banking) Services interalia on the terms and conditions contained
herein.
“IVRS” means Interactive Voice Response System used on telephone systems to convert data into
voice and send telephone keypad signals to computer systems to select the choices.
“Password” is a secret series of characters comprising of letters of English alphabet and/or numeric
numbers and/or special characters, that enables a computer User to access a computer network, file,
data or programme.
"Personal information" refers to the information provided by the Customer/User to the Bank.
"SMS Banking" shall mean the Bank's SMS banking facility under StarConnect (Core Banking)
Services which provides the Customer services such as information relating to Account(s) of the
Customer, details about transactions, utility payment, funds transfer and such other services as may
be provided on the Customer's Mobile Telephone using ‘Short Messaging Service’ (SMS) by
the Bank from time to time.
“SMS Password” is a secret series of numeric numbers that enables a User to

access StarConnect (Core Banking) Services using SMS Banking.
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“StarConnect (Core Banking) Services)” is the Bank’s Services extended to its Core Banking Branch
Customers through Internet and Phones i.e. Internet Banking, SMS Banking, WAP Banking and
Telebanking, like:
 Account Status; which includes balance enquiry, transactional view, statement of

accounts, credit/debit card details, demat account details, etc.
 Services/ Requests; like Request for Cheque book, Stop Payment, Remittance (DD/ Pay
order), Utility Payments, deposit renewal etc.
 Financial Transactions; which include transfer of funds (to self account and/or credit/debit
to third party account), remittance instructions, debiting of charges, etc.
 Administration Module;
 Event Based Alerts;
 Utilities; would include display of foreign exchange rates, deposit interest rates, gold rates,
calculation of EMI/Deposit Maturity Value, etc.
These facilities shall be offered in a phased manner at the convenience of the Bank.
The Bank may also make additions/ modifications/ deletions to the facilities offered
through StarConnect (Core Banking) Services, at its sole discretion.
"Terms" refers to the terms and conditions for use of StarConnect (Core Banking) Services as
detailed in this document.
"TPIN" refers to the Telebanking Personal Identification Number and is a unique number, that is
required for the accessing the facility and will be useful for general enquiry and requests, over
Telephone.
“TELEBANKING” means the facility which may be provided by the Bank to the Customers for getting
information through IVRS about the Customer’s Account/s using telephone with key pad facility and/or
for registering for any services as may be offered by the Bank under tele-banking facility.
"Transaction PIN" refers to the Transaction Personal Identification Number and is a unique number
that is required for executing the transactions over Telephone.
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"User" refers to the person(s) authorized to use StarConnect (Core Banking) Services by
the Bank, on the request of its Customer.
 In case of Customer being a Partnership Firm, the partners of the firms shall authorize
specific person(s), who will be allowed to have access to StarConnect (Core Banking)
Services and the same shall bind all the partners of the partnership firm..
 In case of Customer being the Hindu Undivided Family (HUF), the Karta or the Manager of
the HUF shall be authorized to be use StarConnect (Core Banking) Services and the same
shall bind all the members of the HUF.
 In case of Customer being the club/association, the members of the club/association shall
authorise one or more office bearer(s) of the club/association/society, to have access
to StarConnect (Core Banking) Services and the same shall bind club/association.
 In case of Customer being a Company, the person(s) authorised by the board of directors of
the Company and in case of a corporate body other than a company the person or persons
having substantial power of management and control over such corporate body shall
authorize specific person(s), who will be allowed to have access to StarConnect (Core
Banking) Services and the said authorization by means of a Board Resolution, Power of
attorney or mandate, as the case may be, will be registered with Bank.
* In case the Customer is an Individual the individual himself/herself.
“User-ID” refers to short collection of characters and/or numerals to be used to identify the User who
is using the password.
"WAP Banking" shall mean the Bank's WAP banking facility extended through StarConnect (Core
Banking) Services, which provides the Customer services such as information relating to Account(s)
of the Customer, details about transactions, utility payment, funds transfer and such other services as
may be provided on the Customer's Mobile Telephone using ‘Wireless Application Protocol’ (WAP) by
the Bank from time to time.
In this document all references to the User in masculine gender shall be deemed to include the
feminine gender and vice versa.
02. Applicability of TERMS:
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These ‘Terms’ form the contract between the Customer/User and the Bank for StarConnect (Core
Banking) Services. The Customer/User shall apply to the Bank in the prescribed form for use
of StarConnect (Core Banking) Services. A Customer/User who have read and understood the terms
and conditions contained herein (and such other modifications which may be made by the Bank from
time to time at its sole discretion) and agrees to unconditionally accept and abide by the same only
shall apply to the Bank for availing the StarConnect (Core Banking) Services. By applying for availing
of StarConnect (Core Banking) Services, it shall be deemed that the Customer and User has
accepted and agreed to abide by these Terms and conditions and such other modifications, which
may be made by the Bank from time to time. It is further clarified that extending the StarConnect (Core
Banking) Services to any Customer/User shall be at the sole discretion of the Bank and Bank may
reject any applications submitted by any Customer/User without assigning any reasons. These terms
will be in addition to and not in derogation of the terms and conditions relating to any account of the
Bank Customer.
03. StarConnect (Core Banking) Services:
The StarConnect (Core Banking) Services shall comprise of the followings:
a. Internet Banking
b. SMS Banking
c. WAP Banking
d. Telebanking
Customer/User are aware that these services cannot be claimed as a matter of right by any
User/Customer and the same are provided at the sole discretion of the Bank. The Bank also reserves
the right to refuse/withdraw the facility without assigning any reason.
For the purpose of availing StarConnect (Core Banking) Services through Internet the User would
need to be a current Internet User, for using services through Internet, the User should have legal
access to the Internet. The Bank will advise/ publish the information on its website from time to time
the Internet software such as browsers, which are required for using StarConnect (Core Banking)
Services through Internet There will be no obligation on the Bank to support all the versions of this
Internet software. Similarly for availing, StarConnect (Core Banking) Services through Mobile phone,
the User should have a Mobile phone with a mobile connection from any of the Mobile Service
Providers (MSP) with ‘Short Messaging Service’ (SMS) enabled for SMS Banking and for availing
WAP Banking, the User should have a WAP enabled Mobile phone with a mobile connection from any
of the Mobile Service Providers (MSP), providing WAP services to the User.
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The Bank at its sole discretion may decide to extend limited/ additional functionality
of StarConnect (Core Banking) Services through the Kiosks installed at the select location/ branch.
The Services on this Kiosk will be made available to the User through their StarConnect (Core
Banking) Services Internet Banking User ID and Password/s. The Bank may also decide to extend
this facility on a select basis.
04. StarConnect Access:
The User would be allotted a StarConnect User-Id and password(s) by the Bank in the first instance for
access through Internet and WAP, and a TPIN and/ or Transaction PIN for access through
Telephone. The User will be required to change the password assigned by the Bank on
accessing StarConnect for the first time. As a safety measure, the User shall change the password as
frequently thereafter as possible. In addition to User-id and password the Bank may, at its discretion,
advise the User to adopt such other means of authentication including but not limited to digital
certification and/ or smart cards. The User shall not attempt or permit others to attempt accessing the
Account information stored in the computers of the Bank through any means other than
the StarConnect. In the event the Customer authorizes more than one person as the User, the
Customer shall notify to the Bank the mode of operation by such persons (User), based on which the
Bank shall issue necessary operational instructions to the User.
05. StarConnect (Core Banking) Services Password(s) and PIN(s):
The User unconditionally undertakes to have StarConnect password(s), SMS password(s), TPIN and
Transaction PIN of such number of letters/numerals/ special characters as may be notified by
the Bank from time to time and ensure that the same is kept confidential; and not to let any person
have access to the internet/telephone while the User is accessing the StarConnect Services (Core
Banking). If the User forgets the StarConnect (Core Banking) password, the User may request for the
issue of a new password by sending a written request to the Bank and this shall not be construed as
the commencement of a new contract. The Customer/User agrees and acknowledges that
the Bank shall in no way be held responsible or liable, if the User/Customer incurs any loss as a
result of information being disclosed by User regarding the Account(s) or carrying the instruction of
the User pursuant to the access of StarConnect (Core Banking) Services and the User/Customer shall
fully indemnify and hold harmless the Bank in respect of the same. The User shall maintain the
secrecy of all information of confidential nature and shall ensure that the same is not disclosed to any
person voluntarily, accidentally or by mistake.
06. Unauthorized Access:
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The User shall take all necessary precautions to prevent unauthorized and illegal use
of StarConnect (Core Banking) Services and unauthorized access to the Accounts provided
by StarConnect (Core Banking) Services.
07. Joint Accounts:
The StarConnect (Core Banking) Services will be available in case of joint accounts, only if the mode
of operation is indicated as ‘either or survivor’ or ‘anyone or survivor’ or ‘former or survivor’.
The Bank reserves the right to make available the Services on selective basis, in case of mode of
operation are other than the mentioned above on such additional terms and conditions. The access
rights on the account shall be dependant on the mode of operation given in the account.. Further, all
transactions arising from the use of StarConnect (Core Banking) Servicesin the joint account shall be
binding on all the joint account holders, jointly and severally.
08. Change in Authorized Signatory/ Mode of Operation Account/s:
The Customer undertakes to promptly inform the Bank on any change in the User and/or the mode of
operation of account/s linked to the StarConnect (Core Banking) Servicesand also understands and
agrees that the Bank may take minimum one working day to effect the changes for StarConnect (Core
Banking) Services. Where the Customer is a Company, Partnership firm, HUF, Trust,
Club/Association, or any body corporate, the change in existing User and appointment of new User
shall be made only by way of proper resolution/authorisation passed by such Customer and
communicated to the Bank.
09. Mailing Address :
All correspondence/delivery by the Bank shall only be made at the address and/or e-mail address as
registered with the Bank. The Bank shall in no way be held responsible for any non-receipt of the
same.
10. Taxes, Duties, Charges :
The Bank reserves the right to charge and recover from the Customer service charge for providing
services through StarConnect (Core Banking) Services The Customer hereby authorizes the Bank to
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recover the service charge by debiting any of the Accounts of the Customer or by sending a bill to the
Customer who will be liable to make the payment within the specified period. Failure to do so shall
result in recovery of the service charge by the Bank in a manner as the Bank may deem fit along with
such interest stipulated by the Bank and/or withdrawal of the StarConnect (Core Banking)
Services without any liability to the Bank. All out of pocket expenses where ever applicable will be
borne by the Customer, which may be in addition to the Normal Charges, which may be decided by
the Bank from time to time. The Customer shall also be liable to pay service tax or any other
fees/taxes as levied by Government or any other authorities from time to time, notwithstanding that
the Bank may have the statutory obligation to pay it. In the event any authority decides that this
document and/or the Application form submitted by the Customer/User is liable to be stamped, the
liability to pay the same along with penalty and other monies if any levied, shall be on the
Customer/User and in which case the Customer/User shall immediately pay such amounts to the
concerned authority/Bank without demur. The Bank shall also be within its right to pay such amounts
to the concerned authority by debiting the Customer’s account without any notice to the
Customer/User.
11. Maintenance of Sufficient Balance:
The Customer shall maintain, at all times, such minimum balance in the accounts being accessed
through StarConnect (Core Banking) Services, as the Bank may stipulate from time to time.
The Bank may, at its discretion, levy penal charges for non-maintenance of the minimum balance.
The Bank may withdraw the StarConnect (Core Banking) Services, if at any time the amount of
deposit falls short of the required minimum as aforesaid and/ or if the other charges remain unpaid,
without giving any further notice to the Customer/User and/ or without incurring any liability or
responsibility whatsoever by reason of such withdrawal.
12. Funds Transfer through StarConnect (Core Banking) Services

The Customer/User shall not use or attempt to use the StarConnect for funds transfer without sufficient
funds in the concerned Account or without a pre-existing arrangement with Bank for the grant of an
overdraft. The Bank will endeavor to effect funds transfer transaction received
through StarConnect subject to availability of sufficient funds in the Account. The Bank may specify
from time to time the limit for carrying out various kinds of funds transfer or any other services
through StarConnect Services (Core Banking). The said facility will be provided as per conditions
specified by Bank from time to time. Bank shall not be liable for any omission to make all or any of
the payments or for late payments due to circumstances beyond its reasonable control.
In the event of overdraft created due to oversight/inadvertently or due to any other reason, the
Customer will be liable to pay overdrawn amount together with the interest on such over drawn
amount, as decided by the Bank from time to time.
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13. Authority to Bank of India for StarConnect (Core Banking) Services:
The Customer irrevocably and unconditionally authorizes the Bank to access all his Account(s) for
effecting banking or other transactions performed by the Customer/User through the StarConnect (Core
Banking) Services. The instructions of the User shall be effected only after authentication of the User
in accordance with the prescribed procedure for StarConnect (Core Banking)
Services. The Bank shall have no obligation to verify the authenticity of any transaction received
from the User other than by these means of verification.
The display or printed output that is generated by the User at the time of operation
of StarConnect (Core Banking) Services is a record of the operation of the Internet access and shall
not be construed as the Bank’s record of the relative transactions. The Bank’s own records of
transactions maintained through computer systems or otherwise shall be accepted as conclusive and
binding for all purposes.
While the Bank shall endeavor to carry out the instructions promptly, however, it may take minimum
one working day to effect the User/Customer’s Instructions. The Bank shall not be responsible for any
delay in carrying on the instructions due to any reason whatsoever, including due to failure of
operational systems.
14. Instructions:
All instructions for availing the StarConnect (Core Banking) Services shall be given through
respective device by the User in the manner indicated by the Bank. The User is also responsible for
the accuracy and authenticity of the instructions provided to the Bank and the same shall be
considered to be sufficient to operate the StarConnect (Core Banking) Services. The Bank shall not
be required to independently verify the instructions; an instruction is effective unless countermanded
by further instructions. In cases where the Customer has appointed/authorised more than one person
as User with instruction for “joint operation” the Bank shall not be bound to act upon unless the
authorised users give the instructions jointly. They shall also follow the time-to-time
instructions/guidelines given by the Bank in respect of operation/authentication of the transactions
under the StarConnect (Core Banking) Services services.
The Bank shall have no liability if it does not or is unable to stop or prevent the implementation of the
initial instruction/instruction of the Customer/User. Where the Bank considers the instructions to be
inconsistent or contradictory Bank may(without being bound to do so) seek clarification from the
User/Customer before acting on any instruction of the User or act upon any such instruction as it
deems fit, at its sole discretion. The Bank states that they have no liability or obligation to keep a
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record of the instructions to provide information to the User/Customer or for verifying User's
instructions. The Bank may refuse to comply with the instructions without assigning any reason and
shall not be under any duty to assess the prudence or otherwise of any instruction and have the right
to suspend the operations through the StarConnect (Core Banking) Services, at its sole discretion if it
has reason to believe that the User/Customer's instructions will lead or expose to direct or indirect
loss or claim. In such cases Bank may require an indemnity or such other security from the Customer
before continuing to operate the StarConnect (Core Banking) Services.
15. Accuracy of Information:
The Customer and User is responsible for the correctness of information supplied to the Bank for use
of the StarConnect (Core Banking) Services. The Bank accepts no liability for the consequences
arising out of erroneous information supplied by the Customer/User. If the User/Customer notices an
error in the information supplied to the Bank either in the application form or any other
communication, he shall immediately advise the Bank, which will endeavor to correct the error
wherever possible on a "reasonable efforts" basis. It is clarified that Bank shall not be liable to the
Customer/User or any other person for acting on such erroneous information supplied by the
Customer/User. The Customer also undertakes that they shall fully Indemnify and keep Indemnified
the Bank for any loss, damage or claim sustained to the Bank due to the Bank acting on such
erroneous information supplied by the Customer/User.
16. Liability of the Customer, User and Bank:
The Bank shall not be liable for any unauthorized transactions occurring through
the StarConnect (Core Banking) Services and the Customer and User hereby fully indemnifies and
holds the Bank harmless against any action, suit, proceeding initiated against it or any loss, cost or
damage incurred by it as a result thereof. The Bank shall under no circumstance be held liable to the
Customer/User if the StarConnect (Core Banking) Services is not available in the desired manner for
reasons including but not limited to natural calamities, legal restraints, faults in the telecommunication
network or network failure, or any other reason. Under no circumstances shall the Bank be liable for
any loss or damages whatsoever whether such loss or damages are direct, indirect, incidental
consequential and irrespective of whether any claim is based on loss of revenue, interruption of
business or any loss of any character or nature whatsoever and whether sustained by the
Customer/User or by any other person. Illegal or improper use of the StarConnect (Core Banking)
Services by the User shall render the Customer liable for payment of financial charges as decided by
the Bank or will result in suspension of the operations through the StarConnect (Core Banking)
Services, in addition to the Customer’s liability as per the law of land.
17. Indemnity:
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P a g e | 17
The Customer hereby agrees and declares that they shall be bound by whatever action of the
Customer/User or any inaction on his/their part and shall not challenge the same and further hold the
Bank harmless and indemnified in this regard.
In consideration of the Bank providing the Customer the StarConnect Services (Core Banking), the
Customer hereby Indemnify and keep indemnified and hold the Bank, including their officers,
employees and agents, indemnified against all claims, losses, damages and expenses on full
indemnity basis which the Bank may incur, sustain, suffer or is likely to suffer in connection with the
execution of the Customer's instructions and against all actions, claims, demands, proceedings,
losses, damages, costs, charges and expenses as a consequence or by reason of providing a service
through star services (Core Banking) Services. The Customer will pay the Bank such amount as
may be determined by the Bank to be sufficient to indemnify it against any such, loss or expenses
even though they may not have arisen or are contingent in nature.
18. Disclosure of Information :
The Customer and User agrees that the Bank or their agents may hold and process their Personal
Information and all other information concerning their Account(s) or otherwise in connection with
the StarConnect (Core Banking) Services as well as for analysis, credit scoring and marketing. The
Customer and User also agrees that the Bank may disclose, to other institutions/Government
departments/statutory bodies/RBI/Credit Information Bureau of India Ltd,, such Personal Information
as may be necessary for reasons inclusive of but not limited to participation in any telecommunication
or electronic clearing network, in compliance with a legal or regulatory directives, for credit rating by
recognized credit scoring agencies, for fraud prevention purposes.
19. Change of Terms :
The Bank has the absolute discretion to amend or supplement any of the Terms specified in this
document at any time and will endeavor to notify such changes wherever feasible. The Bank may
introduce new services within StarConnect (Core Banking) Services from time to time. The existence
and availability of the new functions, changes etc… will be published on the Bank’s Website
(www.bankofindia.com) or by nay other means, as and when they become available. The Customer
and User agrees to be bound and shall abide by the terms and conditions as applicable.
20. Non-Transferability:
The grant of StarConnect (Core Banking) Services to a Customer is not transferable under any
circumstance and shall be used only by the User authorised by the Customer.
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P a g e | 18
21. Termination of StarConnect:
The Customer may request for termination of the StarConnect (Core Banking) Services facility any
time by giving a written notice to the Bank. The Customer will remain responsible for all transactions
made and those scheduled for a future date on his/her account(s) prior to the time of such
cancellation/termination of the StarConnect Services (Core Banking). The Bank may at its sole
discretion withdraw the StarConnect facility at anytime without incurring any liability to the Bank. The
closure of account by the Customer will automatically terminate the StarConnect Services (Core
Banking). The Bank may suspend or terminate the StarConnect (Core Banking) Services without prior
notice if the Customer has committed breach of these terms and conditions or the Bank learns of the
death, any proceeding for winding up, bankruptcy legal incapacity of the Customer.
22. Notices :
Notice(s) under these Terms may be given by the Bank and the Customer in writing by delivering
them by hand or by sending them by post to the last address given by the Customer and /or by
electronic mail and in the case of Bank to its corporate office address as set out hereinabove. In
addition, the Bank may also publish the notices in a newspaper or on its web site located at
www.bankofindia.com. Such notices will have the same effect as a notice served individually to each
Customer. Notice and instructions will be deemed served 7 days after posting or upon receipt in the
case of hand delivery, cable, telex or facsimile or upon publishing in any news paper or the Web Site
of the Bank.
23. Risks
The Customer hereby acknowledges that he is utilizing the StarConnect (Core Banking) Services at
his own risk. These risks would include the following risks,
(i) Misuse of password/ PIN:
The Customer/User acknowledges that if any unauthorized/third person obtains access to his
password or PIN, such unauthorized/third person would be able to have access to the facility
and to provide instructions to the Bank and transact all his accounts. In such case,
the Bank shall not be liable for any loss, damage sustained to Customer. The Customer and
User shall ensure that the terms and conditions applicable to the use of the password as
contained in the StarConnect (Core Banking) Services Terms are complied with at all times.
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P a g e | 19
(ii) Internet Frauds:
The Internet per se is susceptible to a number of frauds, misuse, hacking and other actions,
which could affect instructions given to the Bank. Whilst the Bank shall aim to provide security
to prevent the same, there cannot be any guarantee from such internet frauds, hacking and
other actions which could affect the instructions given to the Bank. The Customer shall
separately evolve/evaluate all risk arising out of the same.
(iii) Mistakes and Errors:
The Customer and User are aware that they are required to mention correct details. In the
event of any inaccuracy in this regard, the funds could be transferred to incorrect accounts,
for which Bank shall not be liable. The User and Customer will ensure that there are no
mistakes and errors and the information/ instructions given by the User and Customer to
the Bank in this regard are without error, accurate, proper and complete at all points of time.
On the other hand, in the event of Customer's account receiving an incorrect credit by reason
of a mistake, the Customer/User shall immediately inform and return such amounts to the
Bank together with interest at such rates determined by the Bank, till repayment. The Bank
shall also be entitled to recover such amounts together with interest as above and reverse the
incorrect credit at any time whatsoever without prior notice / consent of the Customer. The
Customer shall be liable and responsible to the Bank and shall accede and accept
instructions of the Bank without questions for any unfair or unjust gain obtained by the
Customer.
(iv) Transactions:
The transactions as per User's instructions under StarConnect (Core Banking) Services may
not fructify or may not be completed for any reason whatsoever. In such cases, the Customer
shall not hold the Bank responsible or involved in any manner in the said transaction(s) and
contracts and Customer's sole recourse in this regard shall be with the party to whom User’s
instructions were favouring. The Bank is merely providing the services to the Customer and
the Bank shall not be responsible in this regard.
(v) Technological Risks:
The technology for enabling StarConnect (Core Banking) Services offered by the Bank could
be affected by virus or other malicious, destructive or corrupting code or programme. It may
Source:
P a g e | 20
also be possible that the site of the Bank may require maintenance/repairs and during such
time it may not be possible to process the request of the Customer/User. This could result in
delays in processing of instructions or failure in the processing of instructions and other such
failures and mobility. The Customer undertakes and agrees that the Bank disclaims all and
any liability, whether direct or indirect, arising out of loss or profit or otherwise arising out of
any failure or inability by the Bank to honour Customer's/User’s instructions for whatsoever
reason. Bank shall not be liable if the instruction given by the User’s is not received correctly
and/or is not complete and/or is not in readable form.
The Customer and User understands and accepts that the Bank shall not be responsible for
any of the aforesaid risks. The Customer also accepts that the Bank shall disclaim all liability
in respect of the said risks.
24. Governing Law:
These terms and conditions and/or operations in the accounts of the Customer maintained by
the Bank and/or the use of services provided through StarConnect (Core Banking) Services shall be
governed by the provisions of Information & Technology Act, 2000 and by the other laws of the
Republic of India and no other nation. The Customer/User agrees to abide by prevailing laws in
respect of StarConnect (Core Banking) Services applicable in Republic of India. Bank accepts no
liability whatsoever, direct or indirect for non-compliance with the laws of any country other than
Republic of India. The Customer/User agrees to submit to the exclusive jurisdiction of the Courts
located in Mumbai (Maharastra), India as regards any claim or matters arising under these terms and
conditions. However, the Bank may initiate legal action at any other Court of competent jurisdiction.
The mere fact that StarConnect (Core Banking) Services can be accessed through Internet by a User
from a country other than India shall not be interpreted to imply that the laws of the said country
govern these terms and conditions and/or the operations in the accounts of the Customer through
Internet and/or the use of StarConnect (Core Banking) Services.
The rules and regulations applicable to normal banking transactions in India will be applicable mutatis
mutandis for the transactions executed through StarConnect (Core Banking) Services. The Customer
and User are also aware that it is their responsibility to comply with all the laws, rules and regulations
prevailing in the country from where he is accessing the Internet.
25. Applicability To Future Accounts:
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P a g e | 21
Bank and the Customer agree that if the Customer opens further Account(s) with/subscribes to any of
the products/services of Bank, and Bank extends the StarConnect (Core Banking) Services to such
Accounts or products or services and the Customer opts for use thereof, then the Terms shall
automatically apply to such further use of the StarConnect (Core Banking) Services by the Customer.
26. Assignment :
Bank shall be entitled to sell, assign, securatise or transfer Bank's right and obligations under the
Terms and any security in favour of Bank (including all guarantee/s) to any person of Bank's choice
in whole or in part and in such manner and on such terms and conditions as Bank may decide. Any
such sale, assignment, securitisation or transfer shall conclusively bind the Customer/User and all
other persons. The Customer/User and their respective heirs, legal representatives, executors,
administrators and successors are bound by the Terms. However, the Customer and User shall not
be entitled to transfer or assign any of their rights and obligations hereunder unless permitted by the
Bank in writing.
27. Right of set-off and Lien :
Bank shall have the right of set-off and lien, irrespective of any other lien or charge, present as well
as future, on the deposits held in the Account(s) or in any other account, whether in single name or
joint name(s), to the extent of all outstanding dues, whatsoever, arising as a result of
the StarConnect (Core Banking) Services extended to and/ or used by the Customer.
28. Proprietary Rights :
The Customer acknowledges that the software underlying the StarConnect (Core Banking)
Services as well as other Internet related software which are required for accessing StarConnect (Core
Banking) Services are the legal property of the respective vendors. The permission given
by Bank to access StarConnect (Core Banking) Services will not convey any proprietary or ownership
rights in such software. The Customer/User shall not attempt to modify, translate, disassemble,
decompile or reverse engineer the software underlying StarConnect or create any derivative product
based on the software.
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P a g e | 22
29. General :
The clause headings herein are for only for convenience and do not affect the meaning of the relative
clause. Bank may sub-contract and employ agents to carry out any of its obligations under this
contract. StarConnect (Core Banking) Services would be available to the Customers/User in certain
cities only and during timings specified by Bank from time to time and transactions normally would be
carried out on the same day or on the next working day depending upon the time of logging of the
transaction.. All costs incurred by the Customer including telecommunication costs to use
the StarConnect (Core Banking) Services would be borne by the Customer.
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P a g e | 23

Non-Performing Assets: in Bank of India

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CTRLSOFT

Profit, losses, GNPAs of Public Sector Banks

Amounts in crore Rs.

S. No. Bank As on FY 2017-18 **

Gross NPA Operating Provisioning Net profit

1 Allahabad Bank 16.0 3,438 8,113 -4,674

2 Andhra Bank 17.1 5,361 8,774 -3,413

3 Bank of Baroda 12.3 12,006 14,437 -2,432

4 Bank of India 16.6 7,139 13,183 -6,044

5 Bank of Maharashtra 19.5 2,191 3,337 -1,146

6 Canara Bank 11.8 9,548 13,770 -4,222

7 Central Bank of India 21.5 2,733 7,838 -5,105

8 Corporation Bank 17.4 3,950 8,004 -4,054

9 Dena Bank 22.0 1,171 3,094 -1,923

10 IDBI Bank Limited 28.0 7,905 16,142 -8,238

11 Indian Bank 7.4 5,001 3,742 1,259

12 Indian Overseas Bank 25.3 3,629 9,929 -6,299

14 Punjab & Sind Bank 11.2 1,145 1,889 -744

15 Punjab National Bank 18.4 10,294 22,577 -12,283

16 State Bank of India 10.9 59,511 66,058 -6,547

17 Syndicate Bank 11.5 3,864 7,087 -3,223

18 UCO Bank 24.6 1,334 5,771 -4,436

19 Union Bank of India 15.7 7,540 12,787 -5,247

20 United Bank of India 24.1 1,025 2,479 -1,454

21 Vijaya Bank 6.3 3,098 2,371 727

3.Axis Bank Limited

8.Central Bank of India

9.Cooperatieve Rabobank U.A.

Terms and Conditions for

“SMS Password” is a secret series of numeric numbers that enables a User to

 Account Status; which includes balance enquiry, transactional view, statement of

 Event Based Alerts;

* In case the Customer is an Individual the individual himself/herself.

02. Applicability of TERMS:

03. StarConnect (Core Banking) Services:

The StarConnect (Core Banking) Services shall comprise of the followings:

04. StarConnect Access:

05. StarConnect (Core Banking) Services Password(s) and PIN(s):

06. Unauthorized Access:

07. Joint Accounts:

08. Change in Authorized Signatory/ Mode of Operation Account/s:

09. Mailing Address :

10. Taxes, Duties, Charges :

11. Maintenance of Sufficient Balance:

12. Funds Transfer through StarConnect (Core Banking) Services

15. Accuracy of Information:

16. Liability of the Customer, User and Bank:

18. Disclosure of Information :

19. Change of Terms :

(i) Misuse of password/ PIN:

(iii) Mistakes and Errors:

(v) Technological Risks:

24. Governing Law:

25. Applicability To Future Accounts:

27. Right of set-off and Lien :

28. Proprietary Rights :

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