The Financial Year 2013 was a challenging one not only for India but also for the entire Global Economy. The recession in Industrial Sector, decelerated growth in Services Sector and deficient rain fall affecting the Agriculture had its dampening impact on the Banking Industry. The Export Sector was also impacted by Global Recession. Despite the recession, we performed well in certain areas such as:
1. Total volume of business of the bank has crossed an important milestone of Rs. 25,000 crores during the Financial Year with actual figure of Rs.27,321 crores as at 31st March 2013 registering an increase of 10.66% in Total Deposits and Retail Term Deposits growth of 13.51% Y-o-Y. By shifting our focus from wholesale credit to retail credit and by focusing on certain delicate / special category accounts to prevent them from slipping into NPAs, our efforts enabled us to increase the advances by 14.86%.
2. Our Priority Sector Advances increased from Rs. 3,454 crores to Rs. 4,566 crores, which constitutes 44% of Adjusted Net Bank Credit (ANBC), thereby surpassing the Target of 40% stipulated by Reserve Bank of India.
3. Our Agriculture Advances stood at Rs. 2,282 crores, which constitutes 22% of the Adjusted Net Bank Credit (ANBC), thereby surpassing the Target of 18%.
4. Our Operating Profit has also gone up to Rs.251 crores.
5. Our Non-interest Income has increased by 24.78%.
6. Our Interest Income increased by 15.88%.
7. Our Total Income increased by 16.72%.
8. As far as Capital Adequacy is concerned we are comfortable at 12.32% as on 31.03.13 as per calculations under Basel II.
9. Dividend was recommended @ 30% for the year 2012-13.
10. Under Financial Inclusion Plan, we are falling in line with the expectations of Government of Tamil Nadu and presently we are servicing 131 villages as allotted by SLBC Leader.
11. Customers of our Bank enjoy boutique of products and services like VISA/Rupay Cards and inward remittances through Times of Money available at all branches, Prepaid Cards, Mobile Banking (IMPS), Internet Banking, SMS Alerts, ASBA, Demat, OLT, 3-in-1, Doorstep Banking etc. Instant Non-personalized VISA / Rupay cards are available at all Branches to ensure immediate delivery on the day of opening of the account itself.
12. Our Bank has opened appreciable number of ATMs at strategic locations for the convenience of our Customers, with added facilities like IMPS. As of now, our bank is having 685 ATMs.
13. Our progress in the POS installations has been commendable adding 2014 fresh installations during the Financial Year, 2013 and as of now 3075 POS machines. Our CASA customer base has increased by 2 lakh 37 thousand accounts reflecting an increase of 20% over the last Financial Year.
14. Our Bank, which is acting as Corporate Agent for LIC of India for selling Life Insurance Products has made steady progress with appreciable increase to the tune of 65% over last year of fresh premium. In addition, in the General Insurance category, Bank is associated with Bajaj Allianz General Insurance Company and our premium collection shown Y-o-Y growth of 33%.
Our Bank has opened 7 Branches during the Current year and proposes to add 63 more Branches before December 2013. It is proposed to expand Branch Base in Tamil Nadu by adding 35 Branches i.e. 50% of new branches will be opened in the State of Tamil Nadu out of 71 new licenses received from RBI.
Corporate Social Responsibility:
In our commitment towards Corporate Social Responsibility, our Bank has undertaken several initiatives towards betterment of deprived section of the society, extending infrastructural and basic amenities to the needy institutions and providing scholarships to poor meritorious students as elucidated in the annual report.
Highlights of June 2013 quarter financial performance:
Ø Operating profit for the first quarter ended June 2013 stood at Rs.84.25 crores as against Rs.46.62 crores during the corresponding period of the previous year, with a remarkable growth of 80.70%.
Ø Net Profit for the first quarter ended June 2013 at Rs.25.35 crores is marginally ahead of Rs.25.23 crores for the corresponding quarter of the previous financial year and sequentially it has grown by 48%.
Ø Total interest income for the quarter ended June 2013 grew by 14.05%, to Rs.477.92 crores against Rs.419.05 crores in the corresponding period of previous financial year.
Ø Other income for Q1 of FY14 has also shown a growth of 29.24%, at Rs.54.53 crores, up from Rs.42.19 crores in Q1 of FY13.
Ø Total Income of the Bank for Q1 of FY14 at Rs.532.45 crores is up from Rs.461.25 crores for Q1 of the previous year with a growth of 15.44% (Y-o-Y).
Ø Total Deposits stood at Rs.15,688.93 crores from Rs.14,135.60 crores for the corresponding period of previous financial year, registering 11% growth.
Ø Gross Advances grew by 12.80%, Rs.11,848.66 crores as at 30th June 2013, up from Rs.10,503.94 crores as at 30th June 2012.
Ø Total Business has grown to Rs.27,537.59 crores from Rs.24,639.54 crores of the corresponding period of previous FY with an increase of 11.76% Y-o-Y.
Ø NIM improved to 2.85% as of 30th June 2013 against 2.17% in the previous year.
Our Bank has planned to achieve the Corporate Goal of 25% growth in Deposits and 26% growth in Advances for the year 2013-14. Towards this, we have proposed for a paradigm shift in business models, in customer experience, in products, in delivery channels and in technology.
Our proposed major focus areas are enhancing the customer relationship value, segmental focus, increasing ROA, reduction in overall NPA%, taking CASA to 14% to 20%, reduction in cost of funds, growth in core fee income, mass acquisition of new clients through multi channels and multi products.
I take this opportunity to thank our stakeholders for the confidence reposed on us in our journey towards progressive growth and for their continued patronage and unflagging support.