Important Announcement
Chairman's Message

From the Chairman’s Desk

Dear Colleagues,

Greetings for the Financial Year 2018-19.

The results for Financial Year 2017-18 are out and are fantastic considering the circumstances. I feel proud seeing the remarkable figures of our Banks business growth during the year. This is the result of hard work by all of you. I heartily congratulate each one and express gratitude for your commitment. Your hard work and extra ordinary efforts have paid off!

As this might be my last word in this magazine, I take liberty of placing the figures during my tenure, which give an idea about how we have progressed during past 3.5 years.

(Rs. in Crore)

Sr.  No.


As on 31/07/2014

As on 31/03/2017

As on 31/03/2018

Growth in last year (%)

Growth during tenure (%)
















Total Business







Gross NPA







Gross NPA % to Advances







CASA deposit







Gross profit







Net profit






* Figures for the year 2013-14.

Once again, I feel immense pleasure to congratulate each one. Let me give a little bit of back ground which will show clearly our efforts. Our crop loan season, (crop loan is the main loan product) starts in April &ends by July/August. When I joined, Bank had stopped loaning (fearing breach of CRAR for want of Capital) and no fresh loans were done during season April/July-14. I assumed charge on 01-08-14 and by the time I studied the situation and found some place to lend by realigning weighted assets such as liquidate bank FDs carrying 20% risk weightage or bonds carrying 102.5% weightage and shifting to G-sec which carrying only 2.5% risk weight and also leveraging whatever increase in profits for lending, crop loan season was over. During that F.Y. 2014-15 advances barely grew at 3.12%. So, whatever growth has come it is mainly during 3 full years.

I continued my efforts for fresh capital (which started even before I assumed charge) with SBI, NABARD & DFS, but as is well known that capital infusion has not come till date! I have realized during my entire tenure at RRB that capital is the axis on which whole operations of a bank revolve, viz. lending capacity, investments, tax planning, etc. For want of capital we have declined many large value loan proposals which could have taken our business past 10,000 crore (which was my aim initially). Thus, despite constraints of capital & limitations which come due to 75% priority sector obligation, other constraints such as lack of man power(during some years we did not get fresh staff as asked and only 10/15% was allotted and high attrition left us with reduced strength instead of increase)against these constraints (there are more, such as no corporate internet banking, no EPCs, no forex, no currency chest, etc.) and competition from all mainly best public sector banks in both, lending i.e. high value agri & SME and deposits mainly high value; SGB team has achieved results and financial parameters which are comparable with the best. Unfortunately there is false opinion at highest decision makers that RRBs competitors are mainly Co-operative banks, Small & Payment banks but our ground level experience points otherwise. Our good SME a/cs have been taken over by pvt. banks by under quoting or offering something which we couldnot e.g. EPC. They have quoted higher in bulk deposits with a margin which we could not match. After pay parity with nationalized banks, RRBs are left with many disadvantages such as area limitations, small size, no access to capital, multiple ownership, small ticket loans with high cost of administration, predominantly less viable rural presence, etc. Despite these constraints our NPA position, credit growth, profitability especially ROA &ROE is one of the best in the industry.

Coming back to current financial year our advances growth is satisfactory at 27%. Gross NPAs stood at Rs. 28.08 crore are higher at 0.82%,it is because of two high value SME a/c becoming NPA post GST introduction, ignoring this, Gross NPA is 0.30%. Considering the present situation where banking industry is facing huge NPAs, our position is considered quite good. Advances growth was constrained by capital and cautious approach. Deposits have reasonably grown despite post demonetization effect of deposit withdrawals, profit is healthy though Gross Profit is lower because of loss on sale of G-Sec Rs. 12.76 crore against profit of Rs. 25.34 crore previous year. Net profit has increased, we have been able to provide fully the liability towards enhanced gratuity limit.

KCC season is about to start. It is most important for us. Lets add maximum new farmers &achieve maximum renewals. This is the key to our advances growth & low NPA.

A workshop on SHG/ JLG financing was organized at Head Office in co-ordination with NABARD & GLPC on 24.01.2018. SHG/JLG has to be seen as a business opportunity. We have to grow in this product with control on NPA.

Recently, we had arranged an induction training program for newly recruited staff members at State Bank Learning Centre, Bhavnagar. We are also planning to arrange more such training programs for all staff members during the days to come. Training is very critical in development of skills & orienting staff for higher productivity.

Branch expansion is very much necessary to grow. I urge all Regional Managers to make the survey of high potential places for opening new branches.

Our Bank has introduced online quiz portal with instant results on our intra site. I urge all staff members to take maximum benefit of the same. It will help you to excel in various areas and improve knowledge. Further, all newly recruited staff members are requested to appear for JAIIB exam conducted by IIBF. Passing such exams is not only beneficial for improving banking knowledge but also rewarding financially.

International Womens Day is celebrated worldwide on 8th March is really a special day dedicated to women folks for recognizing them for the tremendous efforts they put in day to day life. I feel happy that our Bank has celebrated this day inviting Ms. Ruzan Khambatta, director of N. Wave Tech Pvt. Ltd Ahmedabad and founder of Wajra Force Empowerment Foundation, Ahmedabad. She very nicely deliberated especially on self defense and balancing professional and personal life for working women. It was really a wonderful idea and I congratulate Womens Wing SGB and Personnel Department for their efforts to make this event a grand success.

I feel privileged to lead this wonderful institution. This has been memorable experience. I thank each staff & other institutions viz. RBI, NABARD, SBI and Board of Directors for guiding and supporting me during this period. I am sure this institution will grow in size & strength in days to come.

Wish you a happy and healthy future.

With regards,



Date: 31/05/2018