At the outset I would like to extend my sincere thanks and gratitude to Dr. G. Shankar, Mogaveera Vyavasthapaka Mandali, Mogaveera Yuvaka Sangha, Mogaveera seva Sangha, Hobali-Bahgwadi, All village Sabhas, Moolasthanas, other Mogaveera institutes, members of our Bank and all our Staff members for their whole hearted support in electing us to power with a decisive mandate in the recently concluded elections to the Board of Directors of the Bank.
In any vibrant and growing organization, and to be precise, in an Urban Co-operative Bank, a reasonably good performance in key areas of banking alone will yield the desired results. In our considered opinion this has not happened despite a set of Elected Directors were at the helm of affairs for continuously over a decade. Hence we young, energetic candidates blended with, banking, legal, accounting expertise and visionary entrepreneurs have come together with the sole intention to enlarge the vision and mission established our founder forefathers several decades ago.
Although the performance for the year ended 31.03.2015 belongs to the previous Board, I as the present chairman of the bank take this opportunity to place before you the highlights of the Bank’s performance during the financial year 2014-15. The Bank has made progress in some of the key parameters; however, the results are far from encouraging. The Deposits increased from 644.27 crores to 691.39 crores, an increase of Rs. 47.12 crores and a growth of 7.31%. The advances has seen a decline from 355.12 crores to 339.03 crores. The decline can be attributed to lack of sufficient credit off take as well as the Banks decision to reduce the exposure on bills discounted under L.C. considerably as they form a part of the Inter Bank Deposit Exposure limit.
The Bank has been deploying its funds judiciously to get optimum yield and reduce the erosion in the value of assets. However lack of adequate credit off take has led to a low Credit Deposit Ratio which has impacted on operating margin. Inspite of low C.D. ratio of 49.04%, Bank could improve upon its net profit from Rs. 3.06 crores to Rs.3.55 crores due to a substantial improvement in the Treasury operations. The NPA’s has always proved to be impediment to the growth of the Bank. This year the NPA has surged considerably from Rs. 17.51 crores to Rs. 42.90 crores as we have taken in to account all deviations observed by the RBI in its report for the year ended 31.03.2014. The Gross NPA thus stands at 12.65% andNet NPA ate 8.29%.The present Board is determined to take corrective steps to arrest new NPAs and facilitate the enforcement of decree to recover the old sticky NPAs. We are confident that we will achieve the desired results during the current year.
During the year we were able to shift the Sakinaka Branch to a more spacious and centrally located nearby premises. The new premise’s has more lobby space for the customers and also houses an onsite ATM. There has been lot of transformation taking place in the Banking sector. Technology is playing a dominant role in driving down costs, building efficiency and working as an enabler to make available the best possible services to the customer. Your bank has kept pace with the fast growing changes and has been quick to put in place value added services like ATMs, RTGS/NEFT facility and SMS alerts.
In the recent Past, your bank undertook branding exercise and launched many products exclusively catering to specific customer segment. Kiddoz Recurring Deposit was introduced to enable parents to save regularly to secure the future of their children. Sakhi Accounts were launched to bring banking services to the Women customers. Similarly, Vidya Accounts were launched to introduce banking to the student community. Golden Age Accounts was developed to meet the needs of our Senior Citizen customers. So also, Society Plus was launched to specifically reach out & offer our services to the Co-op Hsg Societies. In keeping with Reserve Bank of India’s stated objective of extending financial inclusion and bringing the benefits of banking to the vast majority of the population, your bank launched Unnathi, a savings account offering our banking services to the under-privileged section of our society.
Your bank also launched many new loan products catering to the specific needs of the customers. Medico was launched to provide financial assistance to the Medical professionals and Advance Against Rent Receivables was introduced to help customers in raising funds against the future rents of their properties. Your bank jointly with UTI Infrastructure Technology and Services Limited launched Swavalamban Pension Account for those customers who do not presently enjoy the benefits under Employee Provident Fund.
Ancillary services like, facilitating purchase/sale of foreign exchange and payment of utility bills has helped us to generate more fee based income as well as cross sell our other products and services. The RuPay Debit cum ATM Card which is a domestic card like the Visa or Master has been successfully launched and more than 4000 RuPay card holders are reaping the benefits offered by the RuPay card. This card which gives access to all our customers to more than one lac RuPay enabled ATMs across the country, will soon be converted into a debit card and shall be accepted at selected outlets for purchase of merchandise.
Your Bank has set its sights high and has plans to reach a business mix of Rs. 5000 crores in the next couple of years and be in the league of the top 25 Co-operative Banks in the Country. We intend to become a Multi-State Bank and go beyond Maharashtra to start banking operations in our home State of Karnataka. All these dreams and aspirations can only take shape if all our well-wishers and members come forward with a single purpose of seeing the growth and welfare of the Bank.
I would like to take this opportunity to thank all members of our staff for contributing whole heartedly to the Bank’s progress. I would also like to extend my gratitude to our valued stakeholders for their continued patronage. We look forward to your continued faith and support to help us in scaling greater heights, and become one of the leading Co-operative Banks in Maharashtra.
With Warm Regards,
Sadanand A. Kotian