Chairman's Message


Chairman's Message

Shri M. B. Kalamthekar

From the Chairman’s Desk

It gives me great pleasure to place before you the highlights of our bank’s performance during the financial year 2019-20. I hearty congratulate the team SGB for tremendous performances putting on the board for F.Y. 2019-20.

Business Growth:

The bank’s business has registered a notable growth of Rs. 1066.78 crore at 10.90% to reach Rs.10853.87 crore as on 31-03-2020. Out of Rs.1066.78 crore business growth 49.71% came from loans & advances while 50.29% came from deposits.

Deposit Growth Driven by CASA Growth:

Bank has registered Rs.536.49 crore i.e. 9.50% growth of deposit as on 31-03-2020 against 19.28%(Source: RBI quarterly statistics) growth observed by all schedule commercial banks working in saurashtra region (bank’s area of operation).CASA deposits grew by Rs.51.52 crore i.e. 1.90% and reached to Rs.2741.84 crore.

Credit Growth:

The gross advances of bank crossed Rs. 4500 crore mark, and grew at 12.28 % (against 2.31% growth (Source: RBI quarterly statistics) by all Scheduled Commercial Banks in saurashtra to the level of Rs. 4667.92 crore by march 2020 from the previous year level of Rs. 4137.65 crore. Total credit to agriculture & allied activities stood at Rs.3047.49 crore with growth of 18.11% as on 31-03-2020.


The net interest income has increased by Rs.16.57 crore and reached to Rs.256.14 crore in FY 2020 against Rs.239.57 crore in FY 2019. The interest income of the bank increased steadily on account of stable rise visible in CD ratio in recent past and reached to Rs.579.24 crore in FY 2020 from Rs.526.07 crore FY 2019. Bank was able to register steady growth of 11.07% in net profit in spite of Rs.65.68 crore of pension provision made during the year. Bank has completed entire provision of Rs.196 crore for pension liability as on 31.03.2020.

Asset Quality:

The management & control of NPA has always remained core competence & feature of the bank. Gross NPA of the bank increased from Rs. 40.15 crore (0.97%) as on march 2019 to Rs.72.74 crore (1.56%) as on march 2020 in spite of challenging macro factors, whereas net NPA in absolute & percentage term remained zero at the end of the March-2020. Provision coverage ratio reduced to 128.08% as on march 2020 against 197.88% as on March-19.

Capital Structure:

Despite challenge of maintaining profitability due to provisioning for pension liability, the bank remained well capitalized & ensured maintenance of required capital adequacy ratio (CRAR) in FY 2020. Bank’s capital adequacy ratio reached to 10.27% as on 31-03-2020 against 10.70% as on 31-03-2019.

New Initiative:

During the year bank has taken various initiative across business lines in order to improve performance delivery. Some of the important initiatives taken are as under:

  • Bank has successfully launched 10 passbook kiosk machines in its branches.
  • Bank has launched 2 mobile vans to spread financial literacy among its customers which are supported by NABARD under financial inclusion fund.
  • Bank has launched In-house IT Portal for Asset Management Hubs with an aim of enhanced control & better tracking of loan application which can reduce TAT of loan application.
Way Forward

We remain extremely focused on the needs of our customers and ready to extend our support to the customers as we continue to emerge from this unprecedented COVID-19 led situation.

Recovery of loans & maintaining gross NPA at below 2% will be the major priority for the bank during the current financial year.

Bank is also focused for rationalization of expenses in order to intake it’s profitability in present challenging environment.

Enrolment of maximum number of beneficiaries under social security schemes like Atal Pension Yojana (APY), Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) to pass on the benefit of government schemes to the targeted section of society.

I would like to express my sincere gratitude for the continued trust & patronage received from customers who have stood with the bank all through.

(Manojkumar B. Kalamthekar)