Dear Members, On behalf of the Board of Directors and on my personal behalf, I take pleasure in extending a warm welcome to each one of you on this Thirty Second Annual General Body Meeting of the Bank.
I trust you have all received a copy of Bank’s Annual report for the year 2007-08 comprising the report of the Board of Directors, Audited Financial statements of the bank and with your consent, I take them as read.
The Indian Economy grew at 9% in the year 2007-08 as compared to 9.5% in the previous year. Despite the slower growth rate in 2007-08 India continues to be one of the fastest growing economies of the World. In the short run, however, one sees some stress on India’s Macro-economic Indicators. Towards the end of 2007-08, inflation started inching up due to steadily rising prices of Foodgrains, Metals and Crude Oil across the Globe. The industrial growth too slowed down to 5.1% in Q-4 of 2007-08 as a result of higher prices of key intermediates and slowdown in World Economic demand. The global slowdown may marginally impact India’s growth rate in the current year as compared to past few years.
Inflation was and still continues to be a cause of concern and has crossed 12% being the highest in the last 13 years. The Reserve Bank of India placed thrust on aggregate demand management to anchor inflationary expectations. The successive increase in Cash Reserve Ratio (CRR) (6% in March’07 to 9% in Aug’08) and ‘0’ interest on CRR balances was complimented by increase in Repo rates to 9%. This in turn led the banking industry to increase the interest rates - both on Deposits and Advances which had significant impact on the banks’ net interest margins.
The global economy is teetering on the brink of severe economic downturn leading to a downward revision in the economic growth. The deepening credit crises in developed countries as triggered by the continuing housing slump, the pressure on US Dollar, persisting global imbalances and the soaring oil prices are slowing the growth of the world economy.
As an important part of global economy, India cannot be completely insulated from the global weaknesses. The Country imports about 70% of the crude oil requirements. The higher oil import bill along with investments outflow from the weakening stock markets had resulted in the depreciation of Rupee. As industrial growth slowing down, the economic environment looks challenging to the banking industry in 2008-09 characterized by pressures on its net interest margins, treasury profits, asset quality management etc.
However I am confident that India has sufficient strength in the form of higher rate of domestic savings and investments and large-sized domestic market that will help it weather the current economic slowdown.
In the background of the said economic environment, the performance of the bank in the year just gone by has been spectacular in the co-operative banking industry in several areas. The year’s results have already been covered in detail in the Annual Report. Therefore, I will present a fairly brief summary of results.
I am happy to inform that the bank has recorded the highest ever profit in the history of the bank. The profit before tax of the bank for the year 2007-08 stood at Rs.14.57 crores as against Rs.6.51 crores for the year 2006-07, registering an increase of 124%. Similarly, the profit after tax for the year 2007-08 stood at Rs.9.93 crores as against Rs.5.15 crores for the year 2006-07, thereby showing an increase of 93%. The bank has contributed Rs.4.64 crores to ex-chequer by way of income tax during the year under review.
I am happy to inform the members that the bank has received “Best e-Security” award at a function arranged for co-operative banks by the “Banking Frontiers” at Mumbai.
The bank has also received a “Merit Certificate” from, Max Newyork Life Insurance, in appreciation of the outstanding contribution made by the bank towards development of bancassurance business and thereby commemorated as a qualifier for “Big Leap” contest.
Members are requested to furnish their respective account numbers maintained with the bank and ensure record of standing instructions with the Shares department for credit of dividend into their account/s so as to comply with the requirement of availing minimum level of services/products as per bye-laws. I also request the members to avail the “Multi-City Cheque facility” for making payments to their customers at all the centres where our branches are located in A.P.
I further request the members to note that the minimum number of “A” class shares that can be allotted is now fixed at 50 as per the amended bye-laws.
In its quest to leverage technology as an enabler for providing superior customer experience and broad-based business expansion with cost consciousness, bank has implemented Core Banking Solutions in all its 30 branches. I am happy to inform the members that our customers can avail “Any Branch Banking” facility at all the branches and can now issue multi-city cheques on all branches in A.P.
Customers can now make e-payments of Income Tax from the bank.
The Bank’s new initiatives could not have come about without the active involvement and support of its staff members. Our staff is aware of the challenges and has fully embraced the Bank’s core principles about banking. To enable them to discharge their duties more effectively and efficiently, training is being imparted on issues relating to banking, technology, credit and other latest trends in banking industry, through our staff training centre as well as at reputed training institutes, both local and outstation.
I am very happy to inform that many distinguished renowned personalities from various spheres and from different parts of the country visited and lauded the progress of the Bank.
I am happy to inform that the 32nd Foundation day celebrations of the bank were celebrated on 9th of August wherein Sri N Krishna Mohan, Regional Director, RBI, has graced the occasion as Chief Guest. Sri R R Girish Kumar, IPS, DG, Anti-Corruption Bureau, has attended the function as distinguished guest and Sri B D Prasada Rao, General Manager, UBD, RBI and Sri Surender Mishra, IRS, Commissioner, Income Tax, were guests of honor.
All of them have praised the bank for its remarkable performance in the recent past and wished many more success in the years to come.
Inspired and motivated by the performance during the year 2007-08, the bank has revised its mission of achieving a business level of Rs.1000 crores to Rs.1200 crores, Profit of Rs.10 crores to Rs.15 crores and CD ratio from 65% to 70% by the year 2009-10. With the support of the valuable customers, members, my colleagues on Board, executives and staff members, I am confident that we will achieve the above mission.
I am happy to inform the members that we have submitted application to RBI for granting of licenses to open three more branches, which is under process with them.
I take this opportunity to extend my sincere thanks to all the members of the bank and also all the esteemed customers for their whole hearted support and patronage to the bank over the years. I thank all my colleagues on the Board for their co-operation and support. My special thanks to Sri Purshotamdas Mandhana, Sr. Vice-Chairman, Smt Pushpa Boob, Vice-Chairperson and Professional Directors CA. R.B. Kabra and CA. R.G. Sarda for their co-operation, guidance and advice.
I thank the officials of Reserve Bank of India, Central Registrar of Co-op. Societies, New Delhi and other officials in the Ministry of Department of Agriculture, State Registrars of Co-operative Societies of AP, Rajasthan and Maharashtra and other regulatory authorities for their continuous support and guidance and encouragement. I acknowledge and thank the contributions made by the Auditors, Legal Advisors, Consultants and Arbitrator.
I thank the National Federation of Co-operative Urban Banks (NAFCUB), A.P. State Co-operative Urban Banks Federation Ltd., for taking up important issues of Urban Co-operative Banks at various levels.
I, along with my other colleagues on Board place on record our appreciation of the services rendered by the Managing Director, General Manager and staff members of the bank for their devoted services and look forward to their continuous co-operation in the banks’ efforts to scale new heights in business and customer service.
"Jai Hind"
