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 2020-21. I heartily congratulate the team SGB for remarkable performances putting on the board for F.Y. 2020-21 amidst such a diffcult time of pandemic. Further I would like to convey heartfelt condolonce for the loss of the life in COVID-19 among existing/retired staff members & their family.

Business Growth:

The bank’s business has registered a notable growth of ₹ 1584.82 crore at 14.60% to reach at ₹12438.68 crore as on 31-03-2021. Out of ₹1584.82 crore business growth 42.90% came from loans & advances while 57.10% came from deposits.

Deposit Growth Driven by CASA Growth:

Bank has registered ₹905.02 crore i.e. 14.63% growth of deposit as on 31-03-2021 against 2.60 %( Source: RBI quarterly statistics) growth observed by all schedule commercial banks working in saurashtra region (bank’s area of operation).CASA deposits grew by ₹492.62 crore i.e. 17.97% and reached to ₹3234.47 crore.

Credit Growth:

The gross advances of bank crossed ₹ 5000 crore mark, and grew at 14.60 % against 11.70% growth (Source: RBI quarterly statistics) by all Scheduled Commercial Banks in saurashtra region & reached to the level of ₹ 5347.72 crore on 31-03-2021 from the previous year level of ₹ 4667.92 crore. Total credit to agriculture & allied activities stood at ₹3540.17 crore with growth of 16.20% as on 31-03-2021.


The net interest income has increased by ₹35.03 crore(13.68% growth) and reached to ₹291.17 crore in FY 2021 against ₹256.14 crore in FY 2020. The interest income of the bank increased steadily on account of stable rise visible in CD ratio in recent past and reached to ₹618.00 crore in FY 2021 from ₹579.24 crore FY 2020. The Bank registered a Net Profit of ₹ 95.47 crore for the year ending on 31-03-2021 as against ₹ 33.92 crore for the previous year. The sharp rise is attributed to rise in operating profit.

Asset Quality:

The Bank has been able to control the gross NPA below 2.5% even in COVID led adverse circumstances observed during the year. Gross NPA of the bank increased from ₹ 72.74 crore (1.56%) as on march 2020 to ₹125.48 crore (2.35%) as on march 2021 in spite of challenging macro factors, whereas net NPA in absolute & percentage term remained zero at the end of the March-2021. Provision coverage ratio increased to 129.86% as on march 2021 against 128.08% as on March-20.

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 2021. Bank’s capital adequacy ratio reached to 10.73% as on 31-03-2021 against 10.27% as on 31-03-2020.

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:

  • Provided FD/RD & Tax Saver FD opening facility in Internet Banking.
  • Bank has launched 3 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 focused on promoting digital channel as it not only saves huge cost to bank but also ensure our alignment with government’s mission of digital india. Bank has improved alternate channel share from 33% to 43% in FY 2020-21 & aiming to achieve 60% target in FY 2021-22.

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)