Chairman's Message

Business Growth:

The bank's business has grown by ₹2,052.29 crore, an increase of 13.69%, reaching ₹17,041.64 crore as of March 31, 2024. Of this growth, 41.36% was driven by loans and advances, while the remaining 58.64% was attributed to deposits.

Deposit Growth

As of March 31, 2024, the bank has achieved a deposit growth of ₹1,203.41 crore(13.93%), compared to ₹887.92 crore(11.46%) recorded as of March 31, 2023. Additionally, CASA deposits have increased by ₹486.16 crore (12.48%), reaching a total of ₹4,381.06 crore.

Credit Growth:

The bank's gross advances have surpassed ₹7,000 crore mark, growing by 13.36% to reach ₹7,200.82 crore as of March 31, 2024, up from ₹6,351.94 crore observed for the previous year. Total credit to agriculture and allied activities stood at ₹5,460.39 crore, reflecting a growth of 19.42% as of March 31, 2024.

Profitability:

The bank's interest income grew by 19.69%, reaching ₹891.20 crore in FY 2023-24, up from ₹744.62 crore in FY 2022-23, driven by strong growth in interest income from investments. The bank also posted a robust increase in Net Interest Income (NII), which rose by ₹39.59 crore (10.47%) to ₹417.55 crore in FY 2023-24, compared to ₹377.96 crore in the previous year. Both Return on Assets (ROA) and Return on Equity (ROE) remained strong at 2.04% and 20.21%, respectively. Additionally, the bank's net profit experienced significant growth of 27.83%, reaching ₹228.22 crore.

Healthy Asset Quality Parameters:

The bank has successfully reduced its gross NPA to below 2.25%. As of March 31, 2024, gross NPA decreased to ₹156.12 crore (2.17%), down from ₹182.08 crore (2.87%) on March 31, 2023, thanks to a rigorous recovery mechanism. Additionally, net NPA, both in absolute terms and as a percentage, remained at zero as of the end of March 2024.

Adequate Capitalization Parameters:

The Capital Adequacy Ratio has reached at 18.75% at the end of the year 31st Mar-2024 vis-a-vis 16.74% as at the end of 31st Mar-2023, well above the level of minimum 9% stipulated by the RBI.

The growth is primarily backed by healthy growth of 26.49% in total capital observed for FY 2023-24

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:

• Implemented Whatsapp Banking for Non-Financial services.
• Implemented QR Code facility for merchant
• Implemented Aadhaar OTP-based onboarding on UPI
• Implemented Digital Insta Saving Account opening facility through SGB DISA Application

Way Forward

We remain extremely focused on the needs of our customers and ready to extend our support to the customers through various channels.

Recovery of loans & maintaining gross NPA at below 2.25% will be the major priority for the bank during the current financial year.

Bank is focused on promoting digital channel as it not only saves cost to the bank but also ensures our alignment with the Government’s mission of Digital India. Bank has improved alternate channel share from 67% to 77% in FY 2023-24 & aiming to achieve 80% target in FY 2024-25.

Bank will ensure to enroll 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 benefits 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. I am more than hopeful that the robust performance achieved in FY2023-24 will see greater heights in FY2024-25.

Yours Sincerely,
(S Satyanarayana Rao)