Chairman Message :

Dear Sir / Madam,

It gives me great pleasure to place before you the highlights of Bank’s performance during the financial year 2019-20 and once again sincerely thank my esteemed customers for providing this opportunity to serve them and our employees who worked with dedication has helped to achieve these phenomenal results.

Business

In the FY 2019-2020, Bank’s total business grew by 15.60% to ₹ 37818.66 crore from the previous year’s level of ₹ 32714.37 crore. The deposits grew by 15.20%, to ₹ 18495.69 crore from the previous year’s level of ₹ 16055.97 crore & gross advances of Bank recorded a growth rate of 16.00% & grew to ₹ 19322.97 crore from the previous year’s level of ₹ 16658.41 crore. The growth in credit was mostly driven by Housing loan portfolio & the portfolio grew by 39.87% to ₹ 2646.31 crore from previous year’s level of ₹ 1891.87 crore. We ended the year with a net worth of ₹ 2999.03 crore & at the end of year we had over 3300 employees.

The primary contributors to this stellar year were our continued focus on diversifying business – especially Housing Loans, Gold Loans and our ability to garner high value customers in a consistent manner. In addition, we paid relentless attention to our operating discipline by strengthening Branch visit mechanism.

Profitability

FY 2019-2020 has brought about significant improvement on asset quality front, provision coverage, NIM and yield on advances. The profit of the Bank could have been much higher but for the pension provisions made as per the Government of India guidelines.

The net interest income of the Bank stood at ₹1213.04 crore registering a healthy growth of 15.90%.The Operating profit of the Bank grew by 26.60% to ₹1213.00 Crore from the previous year’s level of ₹958.17 crore. The bank made a net profit of ₹ 617.58 crore compared to ₹ 112.04 crore recorded in the previous year.

Concerted efforts towards recovery in stressed assets and strict monitoring led to fall in Gross NPA ratio of the Bank to 1.03% in  March 2020 from 1.14% in the previous year, Bank has made remarkable decision to earmark 100 % Provision Coverage Ratio compared to previous year’s  70.59% , which resulted in Net NPA becoming 0%.

Investments portfolio reduced by Rs.1553.45 Crores during FY 2019-20. Bank has to disinvest to accommodate the funding of pension provision (Fully provided).Further, Investment to deposit ratio reduced to 20.76% from 33.58%.

Technology initiatives

Information Technology has been the backbone of the Bank supporting seamless operations, customer outreach, better products and services and business growth.  The Bank has witnessed enormous amount of technology transforming the Bank, keeping pace with the rest of the industry and enabling the Bank to achieve the business volumes that it has today. 

With over 12.46 Lakh Active Debit cards, Bank is pioneer in catering to the people in remote villages.

APGVB Bank Mobile Banking app, one of the top rated mobile Banking App across all RRBs has achieved more than 5 Lakh Downloads & over 3.2 lakh Registered users as on March 31, 2020. This reflects the growing customer confidence in our products.

Bank has installed around 90 SWAYAMs (Barcode based Passbook Printing Kiosks) in urban pockets for the convenience of customers.

Bank has also launched multiple In-House IT portals like RFIA Audit Portal, Snap Audit Portal , Staff Annual Appraisal portal , MIS Portal , Suit file dashboard to name a few during the FY 2019-20 for easy & effective monitoring of data.

Customer satisfaction 

With a view to increase customer convenience, the Bank has created few touch points. The Bank has more than 2028 operating Bank Mitras and 775 Branches. Bank is among the leading RRBs in extending social security initiatives like APY, PMJJBY, PMSBY and other schemes to its valued customers as envisaged by Government. More than 1600 Financial Literacy awareness camps were conducted during FY 2019- 20 by the Bank Financial Literacy Centres.

During the last few weeks in March we started to see the impact of COVID-19, during which our team worked with incredible dedication towards the service of the customers. Our focus has been and remains the safety of our employees, the delivery of service to our customers and the financial well-being of the Bank. Immediately, Bank had taken preventive measures to safeguard the interest of Staff & advised all staff members to attend duty on alternate day basis.

A strong Balance Sheet, with a net worth ₹ 2999.03 crore and Capital Adequacy position of the Bank which improved from 15.50% in March last year to 16.15% in March 2020, puts us in an excellent position.

Way Forward

As government is proposing phased unlock of all activities & critical vaccine solutions are in advanced stages, we will be closely monitoring the impact of pandemic and will be increasing our Business accordingly. Efforts will also be directed to achieve a more sustainable mix of business. 

We remain extremely focussed on the needs of our customers and even more ready to extend our support to the customers as we continue to emerge from this unprecedented situation.

I want to especially thank our team for demonstrating incredible ability to execute throughout the last financial year and for their stellar performance and dedication under a difficult situation in the past few months. Looking ahead, I am optimistic of the opportunities of the work we are doing for our customers and the approach we have put up in place. 

Yours sincerely

(K. Praveen Kumar)