Chairman Speach

CHAIRMAN’S REPORT TO THE SHAREHOLDERS

Dear Shareholders

On behalf of the Board of Directors of your Bank and on my personal behalf, It gives me immense pleasure to welcome you to this 26th Annual General Body Meeting and to place before you, the highlights of your Bank’s performance during the financial year 2023-24.

ECONOMIC OVERVIEW – INTERNATIONAL & DOMESTIC

  • The past year has been another turbulent year with the Global economy marred by profound shocks and unprecedented uncertainty. The disruption across major shipping lanes in Gulf region have implications for Indian exports and their competitiveness.
  • Despite the ongoing climate risk / geopolitical risks, financial market volatility and tight monetary policy, FY 2024, has been a good year for the banking sector with improved business performance.
  • Though inflation has receded with central banks raising interest rates, underlying price pressures are proving sticky, with labor markets being tight in several economies.
  • Against this backdrop of global uncertainties, Indian economy has remained resilient with robust agriculture and services sector. Taking into consideration the domestic and global macroeconomic developments RBI has projected real GDP growth for FY 2024-25 at 7%
    Going forward credit growth is expected to gain traction in tandem with economic growth.

YOUR BANK’S PERFORMANCE

I am happy to share with you some of the highlights of the Bank for the year 2023-24 in comparison to previous year.

    • The Share capital and Reserves/surplus of your bank have increased during the FY 2023-24 to Rs.776.11 Lakhs as against Rs.755.33 lakhs during previous FY 2022-23.
    • The total number of our Shareholders as on 31.03.2024 are 4322 with total share capital of Rs.424.24 lakhs.
    • The face value of the investments of your bank stood at Rs.1880.29 lakhs for the FY 2023-24, and the capital to risk weighted ratio (CRAR) has stood at 27.60% as against the statutory requirement of RBI of only 9.0%
    • Though The Deposits of the Bank have registered a nominal growth and the figure for the FY 2023-24 stood at Rs.4905.01 Lakhs inspite of general economic slowdown and witnessing of lowered growth rate during FY 2023-24 in the overall banking system.
    • The Loans and Advances of the Bank have registered a growth of around 15% with the figure of Rs.3215.72 Lakhs for FY 2023-24 as compared to previous year figure of Rs. Rs.2801.10 Lakhs for FY 2022-23, which is almost in consonance with the overall banking system growth rate of advances of 20.2% during FY 2024.
    • Priority sector lending of the Bank stood at 62.64% as against the minimum stipulated norm of 60% as per RBI latest guidelines, and weaker section was 12.12% as against RBI norms of 11.5% and Micro enterprises was 39.84% as against RBI norms of 7.5%. The Unsecured loans constituted only 0.1% of the total assets as against stipulated norms of not exceeding 10% of total assets. I am also pleased to inform that your bank has registered a zero percentage of gross as well as Net NPAs, due to good asset quality and healthy bank credit.
    • The profit before tax for the Financial Year 2023-24, stood at Rs.70.60 Lakhs which was marginally less due to non-utilization of working capital limits to the full extent.
    • The deposits have been insured for the entire deposits level and DICGC cover obtained up to 5.00 lacs individually as per DICGC norms.
    • The Business per employee stood at Rs.507.55 lakhs and profit per employee Rs.3.41 lakhs

Declaration of Dividend: The Bank has been paying dividend consistently every year. Keeping in line the consistency levels, the Board of Directors have recommended/proposed a pro-rata dividend @10% for approval of members of General Body.

Technology Upgradation:

  • The core Banking solution (CBS) has been upgraded to Easy core version 14.03.01.4 during the year to accommodate Digital transactions, and many other requirements as per RBI norms.
  • ATM Network which was established with the entire Network of Axis Bank ATM’s Free of charge and with nominal fee with all other ATMs of any Bank, Any-where in India is working smoothly without any sort of hinderances.
  • Immediate credits to the accounts with nominal charges is available in case of NEFT / RTGS transactions.
  • Online purchase and Bill Payment POS facility which was established with network of NPCI through RUPAY Debit cards is working exorbitantly well without a single complaint.
  • Disaster Management which was set up earlier and Cyber Security Norms established are completely as per RBI norms.
  • Instant SMS Alert facility established for all customers free of charge gives information of alerts on your mobile instantaneously of all credit and debit transactions in your account.
  • The clearing of CTS cheques both outward and inward has been tied up with NPCI through HDFC Bank.
  • Your Bank is classified as “Class-A” Bank by the Auditors.

WAY FORWARD

  • With a future focus on quality lending, backed by good security, we have already introduced specialized rates at a very competitive rate on Housing Loan up to 25 lakhs and above 25 lakhs at 10% pa and 11% respectively which will not only augment the housing sector which is a priority for every individual but will also expand further growth in business & profitability.
  • Will continue to reinforce our liability and Assets portfolio
  • Will strengthen our digital platform further with advanced systems like Mobile App. / UPI G-pay, Phone Pay Etc.
  • Will like to Widen our network of branches subject to approval by RBI, one being opened at Attapur last year.
  • Will Ensure to Maintain ZERO NPA level.
  • ABOVE ALL YOUR BANK REMAINS COMMITTED TO INCORPORATING PRINCIPLES AND PRACTICES THAT PROMOTE SUSTAINABLE BANKING OPERATIONS.
  • SUMMING UP, DESPITE THE ECONOMIC HEADWINDS, YOUR BANK HAS INNOVATED WELL TO RESPOND TO THE CHALLENGES POSED BY THE OPERATING ENVIRONMENT

SINCERE ACKNOWLEDGEMENTS

On behalf of the Board, I take this opportunity to express my heartfelt sincere thanks to all our esteemed shareholders, valued customers, officials of RBI, Officials of Registrar of Co-operative Societies, officials of NPCI, officials of Telangana state coop Urban Banks Federations, Statutory Auditors, Concurrent Auditors, GST Auditors, Legal Advisors, Valuers, for their continued support and guidance to the bank. Our thanks also to the excellent support by our Clearing Banker, HDFC Bank through whom we are sub-member, Our Remittance banker Axis Bank, through whom we have RTGS/NEFT/CASH Management & ATM/POS/E-commerce arrangements. Last but not the least, I place on record my appreciation for the hard work, dedication, commitment. and contribution of the staff who have ensured continuous growth of Business of the Bank in all key parameters with personalized service, especially the CEO who has guided the bank to a right direction with a good value based name for the bank.
I wish all of you and your families to stay well and safe.

Jai Hind


OTHER DETAILS

Key Financial Indicators of the bank” for 3 years – as supplemented by us

S.No Details 31.03.’22 31.03.’23 31.03.’24
1 Share capital 423.35 417.86 424.24
2 Reserves 319.82 337.47 351.86
3 Deposits 4775.9 4891.24 4905.01
4 Advances 3044.64 2801.1 3215.72
5 Total 7820.54 7692.34 8120.73
6 PBT 77.22 76.62 70.6
7 PAT 53.99 53.9 54.55
8 CRAR 26.98 30.4 27.6
9 CD Ratio 63.75 57.27 65.56
10 Gross NPA Nil Nil Nil
11 Net NPA Nil Nil Nil
12 Working capital 5506.09 5635.11 5651.08
13 Net worth 743.17 755.33 776.11

APPROPRIATION OF PROFITS:

I am happy to inform the shareholders that your Bank has posted a Net Profit of Rs 54.55 lakhs- for the year ending 31-03-2024 an increase of 1.21% over the previous year’s Net Profit.
And, it is proposed to appropriate the profit (as per Bye-Laws) for the year ending 31-03-2024) as under and the members are requested to approve the same.

SNO Particulars As on 31.03.2024
(Rs. In lakhs)
i Net Profit as per the Audited Balance Sheet 54.55
ii 25% to be transferred to Statutory Reserve 13.64
iii 1% to be transferred to Education Fund 0.54
iv 5% to be transferred to Bad and Doubt full Debts Reserve 2.73

TAX DEDUCTION AT SOURCE:

Depositors irrespective of the fact that they are Share Holders or not, TDS has to be deducted in case the interest paid on the Deposits exceeds Rs. 40,000/- in a financial year. For senior citizens, this limit has been increased to Rs. 50,000/-.

BOARD MEETINGS:

The board meetings were conducted 12 times under the period of review (01.04.2023 to 31.03.2024) and the directors have actively participated in the deliberations.
Various Sub-Committees of the Board met number of times and contributed for the development of the Bank.