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I extend a very warm welcome to each one of you to the 16th Annual General Meeting of your Bank. The past couple of years have been testing for Indian Banking industry with rising NPAs, and overall deterioration of asset quality resulting in successive quarterly losses for most of the Banks; thereby hampering their lending capacity and capital. FY 2018-2019 may be called a breakthrough year for Indian Banking Industry as several steps were taken by Government to breathe air into Public Sector Banks and revive them resulting in increase in the credit off take.
From healthy growth of 8.2% in the first quarter, Indian economy eased to about 7% in the subsequent quarters of financial year 201819 due to declining growth of private consumption, tepid increase in fixed investment, and muted exports. However India still remains one of the fastest growing major economies, based on its strong fundamentals. India moved up by 23 places in the World Bank’s Ease of Doing Business Index 2018, inching upto 77th rank. In terms of purchasing power parity, we are the third largest economy with GDP of US $ 9.5 trillion. India has retained its position as the third largest start-ups base in the world with over 4,750 technology start-ups.
As per World Bank latest report, Indian economy has bounced back strongly from the impact of demonetisation and GST implementation. It is expected to grow by around 7.5 % in FY 2020, based on robust private consumption and various reform measures. After a prolonged period of stress, the banking sector appears to be on course to recovery as the load of impaired assets recedes; declining gross NPA ratio and improving Provision Coverage Ratio, being positive signals.
Various Schemes introduced in the interim budget like Pradhan MantriShram Yogi Mandhan, PM KISAN programme, creation of National programme on Artificial intelligence, two per cent interest subvention on loan of 1 crore for GST registered MSME units, and Vision 2030 are expected to push up India towards better social and physical infrastructure.
It gives me immense pleasure to place before you the Annual Report and Financial statement of your Bank for year ended 31 March 2019. This is an important occasion, giving us an opportunity to revisit past 12 months and ahead to future plans.
Performance of your Bank
With the help of your unbending trust and reliance on your Institution, Bank of Maharashtra was one of the first few Banks to have emerged out of Prompt Corrective Action (PCA).
I am also pleased to inform you that your Bank has registered a Net Profit of Rs.72.38 crore in Q4 of FY 2018-2019 thus ending on a high note and we are committed to carry forward this momentum in FY 2019-2020 as well.
Your Bank has a branch network of 1832 branches of which 1043 branches are located in rural and semi urban areas. Bank has PAN India presence. Bank has committed and dedicated work force of 12913 employees to serve its customers.
Total business stood at Rs.234116.79 crore as on 31.03.2019.
- As on 31.03.2019, total deposits stood at Rs.140650.09 crore & Gross advances at Rs.93466.70 crore.
- CASA deposits increased by 5.25% (Y-o-Y), to Rs.69829.81 crore as on March 31 2019, constituting 49.65 % of total deposits.
- Cost of deposits has come down on Y-o-Y basis to 4.99% for period ended March 31 2019 from 5.31% a year ago
- Net Interest Margin (NIM) improved to 2.53% in year ended March 2019 as against 2.32% in year ended March 2018.
- Operating profit for FY 2018-19 stood at Rs.2197.61 crore, improved from Rs.2191.40 crore, a year ago.
- Net loss for the year ended March 31, 2019 was Rs.4783.88 crore (as compared to net loss of Rs.1145.65 crore in year ended March 31, 2018).
- Gross NPAs and Net NPAs stood at 16.40% [Rs.15324.49 crore] and 5.52% [Rs.4559.33 crore] respectively.
- Bank had Capital Adequacy ratio of 11.86% as on March 31 2019, above the required level of 10.875% as per Basel - III norms.
- CET 1 ratio stood at 9.88% as against minimum required 7.375%
During the year, your Bank had taken new business initiatives as under:
- Premium Savings Bank Deposit Scheme “Purple Privileges” for High Net worth Individuals (HNIs) for providing specialized services.
- Centralized e-Surveillance System at ATMs: A proactive system, which is centrally monitored / controlled & has the capability to detect & deter intruders / unknown persons by use of two-way communication, blowing Alarm & Hooter Systems. The system obviates the need to have security guards at these locations.
- Facility for user defined Limits in Internet banking.
- Mobile Banking - Registration for overseas customers via registered foreign mobile number.
- Bank launched ‘Maha-UPI’, its UPI mobile application.
- Rupay “Platinum” Cards being issued to customers.
- e-KYC, an online Aadhaar Authentication process is made available under CBS
- PSB59 Minutes Scheme has been started under which inprincipal approval would be given
It’s imperative for us to carry the momentum of growth in FY 2019-20 as well and the same can be achieved by means of increasing our credit portfolio by focusing on RAM and improving our digital platforms for providing better customer service.
A number of initiatives are underway to improve the operational efficieny of Banks: with the clear focus on ease of customer banking. With the enhanced and improvised Regulatory regime, the banking sector is set to be much more proficient.
A. S. Rajeev
Managing Director & CEO