It gives me a lot of pleasure to place before you the Annual Report and FinancialStatement of your Bank for the year ended 31st March 2016.
Global Growth during the year remained moderate and uneven with a projection around3.2% in 2016 and it is expected to pick up to 3.5% in 2017. There were positive signs ofrecovery in US and somewhat in Europe; however growth issues in China and Japan remainedmajor international concerns resulting in further pressure on emerging markets. Low oilprice helped in reigning inflation but also adversely affected the economy of the oilproducing countries.
On the domestic front Real GDP growth is projected to improve gradually to 7.6 percent in 2016-17 with inflation expected to moderate to 5 per cent. However slow pick up ofinvestment demand private investment and significant risks of weaker global activity;could be the deterrents to the projected growth prospects. Positive sentiments howeveremerge from the government's "startup" initiative strong commitment to fiscaltargets and the thrust on boosting infrastructure that could brighten the investmentclimate; while household consumption demand could be spurred by the Pay Commission awardcontinued low commodity prices and measures announced for rural sector in the Union Budget2016-17.
However credit growth remained subdued at 10.86% and deposit growth touched 10.59%lowest in last 52 years.
In this back drop your Bank has tried to focus on the bottom line. The performancehighlights of your Bank on major parameters in the year 2015-16 are as under:
1. Total Business has increased from ' 223329.21 crore as on 31.03.2015 to ' 250230.10crore as on 31.03.2016 registering a growth of 12.05 % on Y-o-Y basis.
2. Total Deposits have increased from ' 122118.95 crore as on 31.03.2015 to ' 138989.82crores as on 31.03.2016 registering a Y-o-Y growth of 13.82%. The Bank had consciouslydiscouraged high cost bulk deposit.
3. CASA has increased from ' 45296.80 crore as on 31.03.2015 to ' 50966.82 crore as on31.03.2016 registering a Y-o-Y growth of 12.52%. Share of CASA to total deposits was36.67% as on 31.03.2016.
4. Cost of Deposits has declined to 6.75% for the year ended 31.03.2016 against 7.03%for the year ended 31.03.2015.
5. Gross Advances have increased from ' 101210.26 crore as on 31.03.2015 to ' 111240.28crore as on 31.03.2016 registering growth of 9.91% on Y-o-Y basis.
6. Priority Sector advances increased from ' 39094 crore as on 31.03.2015 to ' 41485crore showing growth of 6.12% which came to 39.82% of ANBC as against required level of40%.
7. Bank has disbursed ' 1290.00 Crore under Prime Minister Mudra Yojana against thetarget of '1155.00 Crore as on 31.03.2016. Bank achieved 111.69% of target allotted byGovernment under PMMY.
8. Banks finance to small and marginal farmers increased from ' 7017 crore as on31.03.2015 to ' 8335 crore as on 31.03.2016 (Y-o-Y increase 18.18%) and achieved 8% asagainst target of 7%.
9. Containing NPAs was challenge for the entire banking sector and the Bank was not anexception. Gross and Net NPAs were ' 10385.85 crore (9.34%) and ' 6832.03 crore (6.35%) ason 31.03.2016 as against ' 6402.06 crore (6.33%) and ' 4126.57 crore (4.19%) as on31.03.2015.
10. Net Interest Income was ' 3878.70 crore for the year ended 31.03.2016 as against '3875.03 crore as on 31.03.2015.
11. Net Interest Margin (NIM) stood at 2.57% for the year ended 31.03.2016 as against2.82% for the year ended 31.03.2015.
12. Non Interest Income has increased from ' 1005.98 crore for the year ended31.03.2015 to ' 1019.29 crore for 31.03.2016.
13. Operating profit during the year ended 31.03.2016 stood at ' 2345.18 crore asagainst ' 2355.09 crore as on 31.03.2015.
14. Net profit during the year ended 31.03.2016 stood at ' 100.69 crore as against '450.69 crore during the year ended 31.03.2015.
15. Capital Adequacy Ratio (Basel III) was 11.20% as on 31.03.2016 as compared to11.94% as on 31.03.2015.
16. Return on Assets for the year ended 31.03.2016 stood at 0.07% as against 0.33% ason 31.03.2015.
17. Cost to Income Ratio stood at 52.12% for the year ended 31.03.2016 as against51.75% for the year ended 31.03.2015.
18. Business per Employee improved to ' 18.18 crore as on 31.03.2016 as against ' 15.74crore as on 31.03.2015. Corresponding figures for Business per branch are ' 132.05 croreand ' 118.79 crore respectively.
During the year your bank had taken new business initiatives as under:-
1. The Credit Processing Centres started last year for faster delivery of SME andretail credit products along with better evaluation are now stabilized.
2. The bank has revamped scheme of Relationship Managers and deployed 91 RelationshipManagers at 10 Zones to cater the HNI customers. The same will be further strengthened.
3. The Bank has installed 11 Automated Cash Deposit machines and 72 automated self passbook printers at various places to reduce load on branches.
4. The Bank has an arrangement in CBS for online fee Collection of differentinstitutes; Organizations etc. wherein Bank will be receiving the commission. The Bank hasalready started IBPS (Indian Banking Personal Selection) online fee collection over thecounter fee collection for Amravati collectorate etc.
5. The Bank has started "Remit2India" which is a web-based person to personmoney transfer system that allows individuals particularly our Non-Resident Depositors toremit foreign currency amount for credit to the Beneficiary account in India.
6. Introduced Sukanya Samriddhi Yojana for the designated branches
7. Introduced the Loyalty Rewards Scheme for all the customers wherein the registeredcustomers will get Loyalty Points. These Points can be earned and burned using theinternet banking & debit cards.
8. Introduced the Pay TM wallet for all the customers wherein the customers can usethis wallet for online purchasing.
9. For Mobile Banking we are working on aggressive on boarding of customers.
10. Launched MUDRA Card on 16.9.2015 as a Rupay Debit Card which is hassle freeflexible credit product that meets working capital needs of Micro & SmallEntrepreneurs.
11. Introduced new variant in Rupay card this card can be given to the customermaintaining minimum quarterly average balance of ' 10000/- & above for new andexisting customers.
The Bank has contributed significantly in Financial Inclusion especially through theachievement over the targets under PMJDY and Bank has received 1st rank among PSU banksfor Aadhar seeding in PMJDY accounts from DFS. As a SLBC convener for Maharashtra it tookfull responsibility for implementation of PMJDY and Aadhar Seeding in these accounts inMaharashtra.
Bank has mobilized 748587 policies under PMJJBY 1413165 policies under PMSBY and43936 accounts under Atal Pension Yojana during last financial year.
Looking forward we believe the encouraging initiatives taken by the Governmentespecially in Road Power Defence Railways Agriculture and Irrigation and MSME Sectorsthe Indian Economy is likely to be on a growth path and your Bank is in all readiness tocatch this wave. With the improvements in economic environment the quality of assetsshould also improve. Your Bank will keep focusing on the retail sectors for productive andsubstantial business. More focused efforts will also be put in for recovery in NPAs.
I thank you all for your continued support and patronage and solicit the same in futureto take the Bank to greater heights
Chairman and Managing Director