Dear Surfer,

The year 2005-2006 had witnessed robust economic growth. The GDP had increased to 8.4% from 7.5% during the year. The demand for funds gained momentum, as there has been overall growth in both manufacturing and service sector. This positive momentum will further accelerate the demand for credit during the current year. In the banking sector, the demand for credit surpassed the deposit mobilized. In the Union Budget for the year 2006-07, which was passed by both the houses of the parliament, Co-operative Bank’s were brought under the tax net and this will affect the profitability of the Co-operative Banks.

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. The demat department continues to offer quality services at the very competitive cost.

Your Bank has started services of franking of documents with through 10 branches since December, 2005. The full effect on the profitability will be felt during the current year. Your Bank had also tied up with Max New York Life Insurance for marketing their Life Insurance products and Reliance General Insurance Ltd, for marketing their General Insurance products.

Your Bank has successfully countered adverse market conditions and posted a net profit of Rs.127.77 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 2.12%.

Your Bank continues its efforts to provide value added services. Your Bank is offering Core Banking Solution through inter-connectivity established with all the branches of the Bank with its Data Centre at Malad and services of instant transfer of funds through Real Time Gross Settlement System (RTGS) of Reserve Bank of India. Bank has extended business hours at branches to render better customer services.

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, 2006 is 14.76% well above the prescribed norms of 9%.

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

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

 

K.D.VORA
CHAIRMAN