BSE LiveApr 08, 16:00
Bid Price (Qty.)
Offer Price (Qty.)
NSE LiveApr 08, 15:59
Bid Price (Qty.)
Offer Price (Qty.)
Dear Shareholders and Stakeholders,
1. The year 2018-19 started on a promising note with expectation of strengthening of global growth. However, the economic and political scenario during the year changed gradually, with escalation of trade tensions, economic disruption in Europe and financial tightening in China and developed countries, especially the USA. Consequently, central banks paused on monetary tightening towards end of the year, to ward off a possible global slow-down.
2. The Domestic economic growth, decelerated on account of lower agriculture and industrial growth. The tight money policy pursued by the RBI in the 1st half of FY 2018-19 later gave way to relaxation in policy stance by way of reduction in repo rates.
3. The deposits and advances growth rate of the banking industry during FY 2018-19 was higher, particularly advances grew by 13.2% on the top of 10% growth rate of previous year. The performance of Indian Banking industry also improved with improvement in Gross NPAs ratio and CRAR, with Capital infusion by the Government.
4. Of course, there were sector specific issues. The NBFC sector faced severe liquidity crunch, after the default of IL & FS. The MSME Sector also faced cash flow problems because of economic stress. RBI and banks, realizing the genuine need of these sectors, had to adopt an accommodative stance to alleviate their problem.
5. The year also saw the consolidation of PSU Banks, with the merger of BOB, Vijaya Bank and Dena Bank, which created fourth largest Bank in Indian Banking space. This also sent a signal to all the PSU Banks that they should be in readiness for such an eventuality. This move needs to be seen as an opportunity for PSBs to explore their inherent strength for creating a synergy amongst them.
6. The EASE Reforms Agenda of the Ministry of Finance, Government of India, further gained ground as the Ranking of PSU banks was rolled out during the year. The EASE ranking, in a way, has hastened the process of digitalization and establishing the right kind of set up and processes in the direction of ‘responsible banking’, ‘customer responsiveness’ etc.
7. One of the important development during FY 2018-19 has been the Supreme Court’s squashing of RBI Notification dated 12th February, 2018, which mandated resolution of stressed accounts within 180 days failing which they were to be referred to the NCLT to be dealt under IBC. At present, the industry waits revised guidelines from the central bank to provide a direction and clarity to the process of bad loans clean up.
8. IT and Technology is going to be the cutting edge in banking space in future. Along with the upgradation of IT platform, the use of data analytics for business development and better targeting of clientele base will be of immense significance.
9. The use of Fin-tech solutions in banking in various fields, be it payment systems, SME and retail lending, insurance, wealth management etc., has assumed greater importance. Because of complementarity and cooperative nature of relationship between the Fintech and financial institutions, we can visualize an exponential growth in this field.
10. Your Bank, during FY 2018-19, has consolidated its position and has come out of PCA in the shortest possible time. There has been improvement in financial indicators like NIM, NPA ratios, CRAR and above all the Bank has posted a net profit of Rs.252 crore in Q4 FY 2018-19. With expected resolutions of large accounts which are being dealt with under IBC, the financial position will further strengthen in FY 2019-20.