MESSAGE TO SHAREHOLDERS
It gives me immense pleasure to welcome you all to the 10th Annual General Meeting ofthe Bank.
It has been indeed an eventful year and I would like to thank all the stakeholders forthe steadfast support and unwavering confidence reposed in the Bank through the thick andthin.
India has proved its ability to break through global economy which has witnessedsluggish growth. The International Monetary Fund (IMF) estimates global economic growth at3.3% in 2019. That's down from 4% in 2017 & 3.6% in 2018. Global economy at present isfacing major issues of US-Sino trade war US sanctions on Iran Brexit. India is a shiningexample of growth. Its economy is growing by approximately 7% making it the fastestgrowing economy in the world.
Accommodative monetary policy additional fiscal support new income support measuresfor rural farmers are expected to spur economic growth despite subdued global demand.
A quick recap on Structural Changes:
The Bank is extremely conscious about the critical role played by the Public SectorBanks (PSBs) in India's economic and social development and it fully subscribes to theregulatory ideas for holistic and wide ranging reforms of the banking sector. Based on therecommendations made at the "Manthan" in November 2017 the Reforms Agenda forResponsive and Responsible PSBs aimed at "EASE Enhanced Access & ServiceExcellence" with six agenda points viz. (i) Customer Responsiveness (ii)Responsible Banking (iii) Credit Off-take (iv) PSBs as Udyami Mitra (aimed at MSME) (v)Deepening Financial Inclusion & Digitalization and (vi) Ensuring Outcome (HR) bydeveloping personnel for Brand PSB. The project aims at highlighting Bank's performance onkey Action Points with metrics depicting Bank's performance/ scope of improvisation on anabsolute or relative basis. The pace of recovery under the Insolvency and Bankruptcy Code(IBC) has been well below expectations. The stress in Non-Banking Financial Company (NBFC)space is emerging as a threat. Unless handled adequately it may lead to a systemic risk.Infusion of capital to the tune of Rs. 195000cr. into the Banks by GOI in FY-19 has notonly smoothened the effect of banking crisis but also helped PSBs to conform to regulatoryrequirements under BASEL-III with ease although growth capital remains a challenge.
Highlights of Bank's Performance:
Under these difficult conditions I would like to draw your attention to theperformance highlights of your Bank which are as under
Crossed Total Business of Rs. 2 Lac crore with closing figure at Rs. 208106crore as on 31.03.2019;
Registered a Net Profit of Rs. 95.18 crore in Q4/FY-19 after losses for sevenconsecutive quarters;
Reported Total Operating Profit of Rs. 1412 crore in FY-19 against Rs. 1024crore in FY-18 a significant growth of 38% (Y-o-Y);
CASA deposit at 51.44% as at the end of March'19 vis-a-vis 48.44% (in March'18)continued to provide comfort by way of reduced cost of funds;
Cost of Deposit (CoD) remained low at 4.96% (in March'19) down from 5.30% in(March'18);
Stressed Assets position improved substantially;
GNPA and NNPA stood at 16.48% and 8.67% as on 31st March'19 as against 24.10%and 16.49% respectively as on 31st March'18.
Provision Coverage Ratio (PCR) improved significantly to 72.94% as on March 312019 against 53.48% as on March 31 2018;
CRAR stood at 13% as on March 31 2019 with Tier I Capital at 10.14% and Tier IICapital at 2.86%;
Net Interest Income (NII) increased to Rs.1975 crore in FY-19 against Rs.1493crore in FY-18 registering a growth of more than 32% on -o-Y basis;
The Retail Segment grew by 12.82% with Housing Loan portfolio growing by 11.87%and Auto Sector by 14.94% in FY-19.
Awards & Achievements:
During FY 2018-19 your Bank received various prestigious awards:
Won "Excellence in IT Infrastructure" Award (Network SecurityProject). The Bank deployed various technologies to enhance Cyber Security posture of theBank. Along with internal control system United Perimeter Shield was deployed to preventvarious Internet based attacks. The award was conferred by the International Council ofElectronic Commerce Consultants (EC-Council) India.
Leadership Capital Award - The efforts of the Bank in promoting APY (AtalPension Yojana) Schemebysignificantenrolments since inception of the Scheme aimed tostrengthen the foundation for building a "pensioned society" as envisioned bythe Government of India was recognized by way of an award at an event organized by thePension Fund Regulatory and Development Authority (PFRDA).
Your Bank's long standing commitment for financialsoundness long term customerrelationship & proactive approach are as important today as ever before. Goingforward your Bank would continue with its thrust on "Growth with Profit" .The Bank would make sincere efforts to protect and further improve the NIM (Net InterestMargin) EPS (Earning per Share) and Assets Quality through dedicated & focussedapproach efficient pricing of loan products and effective credit monitoring.
Your Bank proposes to initiate a number of initiatives such as (i) upgradation of CoreBanking Solution to version .10.x (ii) creation of a State of the Art Call Centers toherald customer delight during the upcoming years. I am confident that your Bank willprevail over the challenges and attain new heights in times to come.
In the landmark 69th year of Bank's epoch making odyssey that actually began in 1914 atComilla (now in Bangladesh) with formation of the oldest constituent of the Bank ComillaBanking Corporation Ltd. I solicit your continued trust and support so that we cantogether propel the Bank to a new height and maximize value for all the stakeholders.
I acknowledge with all humility the support and guidance extended by the differentMinistries of the Government of India at different points of time on different issues theReserve Bank of India the Government of West Bengal and the local administration. Mysincere gratitude to the SEBI (Securities and Exchange Board of India) the StockExchanges and Insurance Regulatory & Development Authority of India for their supportand timely advices.
My heartfelt thanks to each and every customer and shareholder for continuing theirfaith on us and encouraging the workforce to fight out the odds to take the Bank on aforward-looking path of progress and growth.
Thank you Ladies & Gentlemen for your time and attention.
|Yours truly |
|Ashok Kumar Pradhan |
|Managing Director & CEO |
|DIN: 07748272 |
|May 13 2019 Kolkata |