Dear Surfer,

At the outset  I would like to thank all the share holders for the confidence reposed by them in the team lead by me, which were elected unopposed as board members for the term 2007-2012. I assure you on behalf of the newly elected board that we will live up to your expectations through our efforts in further strengthening the position of the Bank.

During the year 2006-07 Indian economy has continued its trend of upward growth with its GDP growth firmed up to 9.27 as against 8.17

of the last financial year. This has paved way for expansion in the Bank's credit which had out paced deposit growth leading to tight liquidity position. This positive momentum will further accelerate the demand for credit during the current year. The banking industry witnessed yet another year of upward swing in the rate of interest and with intense competition there is strain on profitability. Your Bank has taken steps to increase the bottom line through non-fund based income.

Your Bank has started services of franking at Surat Branch in addition to 10 branches in Mumbai which are offering these services. Further on account of persistent demand from customers and public at large who are facing problems of getting non-judicial stamp paper / court fee stamps, your Bank has started the services of selling these documents at 5 branches of the Bank. Thus the Bank is always on the look out for providing value added services to the customers. Customers are benefited much through the core banking services provided by the Bank through interconnectivity with all the branches as it enables customers to do transactions at any branch of the Bank.

Your Bank has successfully countered adverse market conditions and posted a net profit of 119.48 lacs. Your Bank continues to lay emphasis on quality loan assets and with its strong internal risk management system and recovery efforts, the net NPA has been brought down to 2.24%.

Your Bank is complying with all the prescribed parameters and guidelines of Reserve Bank of India. Your Bank's capital adequacy ratio as on 31st March, 2007 is 11.21% which is well above the prescribed norm of 9%.

Your Bank continues to adopt itself to changing banking environment and adhere to the tradition of providing first class customer services. With the totally committed staff, dedicated clients, and your support your Bank continues to improve its performance and will excel growth rate in the Co-operative Banking Sector.

I sincerely thank all of you for your continued support which has been our major source of strength and request you to make use of the services offered by the Bank to the optimum satisfaction.

 

K.D.VORA
CHAIRMAN