On behalf of Board of Directors of your Bank and on my own behalf, it gives me immense pleasure to share that Your Bank was born and established in the year 1996, and now we are in the 28th Year of its existence. I would like to dwell on the highlights and the performance of the Bank during the year 2022-23.

Inspite of various hurdles including stiff and intense competition, due to our sustained growth in deposits, cautious credit deployment and prompt recovery during the financial year, we have achieved a fair growth in terms of business-mix which has increased from Rs.7141.66 lakhs to Rs.7600.36 lakhs, looks more promising, reasonable and satisfactory performance for the year ended 31st March 2023. The comparative Bank performance for the last five years is furnished in the report.

I have great pleasure in advising you all that we have added two more Branches during the financial year 2022-23, thus increasing our Branch strength to four. These were opened at Suraram and Dammaiguda. We have also received a licence to open our fifth branch at Peerzadiguda. Premises have been finalized and the construction work is going on and we plan to open a fifth branch in the coming month of July 2023.

You all know that the Proposal for Amalgamation of the Twin Cities Co-Operative Urban Bank Ltd., with your Bank was submitted to RBI in March 2022 and is under their active consideration. When we get the approval, this would become the sixth Branch of Kranti Bank.

Your Bank’s aggregate deposits growth during the year has gone up to of Rs.4880.98 lakhs as on 31.03.2023, when compared to previous financial year i.e., 2021-22, of Rs.4666.87 lakhs.

The absolute incremental growth during the year is Rs. 214.11 lakhs and growth rate is 4.59%. The CASA position as on 31.03.2023 is Rs.1103.17 lakhs which is equivalent to 22.60% of total deposits. We are glad to inform you that the average cost of deposits as on 31.03.2023 is 6.55%.

Your Bank’s Total Investments in Govt. Securities held as on 31.03.2023 is Rs.1521.91 lakhs, and in term deposits in various banks for different tenors is Rs.573.59 lakhs and in Non SLR funds invested to the tune of Rs.390.00 lakhs on various occasions. The total Investments are Rs. 2691.42 lakhs. The Bank has maintained stipulated SLR and CRR as per RBI norms from time to time during the financial year 2022-23.

Our Gross advances as on 31.03.2023 is Rs. Rs.2719.38 lakhs and as on 31.03.2022 was Rs.2474.79 lakhs, The absolute incremental growth during the year is Rs. 244.59 lakhs registering a positive growth of 9.88% when compared to previous year. The total secured advances as on 31.03.2023 are Rs.2674.03 lakhs (98.33%) and unsecured Advances are Rs. 45.49 lakhs (1.67%), which speaks about the quality of advances.

Out of Rs. 2719.38 lakhs, the exposure to Gold Loans is Rs. 412.29 lakhs, which is equivalent to 15.16% to total Advances and Loans against Deposits is Rs.96.56 lakhs, equivalent to 3.55% to total Advances. This speaks, that the immediate liquidity is Rs.508.85 lakhs which is 18.71% of the total advances.

The CD ratio stands @ 55.71% and average Yield on Advances is 13.39% which is a good return.

RBI has recently announced extension of time for achieving the Priority Sector target of 75% till March, 2026. They have also announced that CUBs who have already reached this target would be incentivized. I am happy to advise you all that we have already achieved Priority Sector Lending target and the current achievement is 77.77% for the FY 2022-23.

The performance of your Bank for the financial year 2022-23 has done fairly well. Key Financial Indicators are depicted in detail in the Annual Report handed over to you. All Financial Indicators are very comfortable and are within the stipulations of Reserve Bank of India and we have come under the category of a Financially Sound and Well Managed Bank.

The main indicator i.e. Gross NPA of 2.61% and Net NPA of 0.58% as against the norm of Gross NPA of less than 7 % and Net NPAs of not more than 3% prescribed by Reserve Bank.

Your Bank has earned a Gross Profit of Rs. 66.03 lakhs, and we are yet to make statutory provisions.

The Bank is regularly declaring Dividends ranging between 12-15%

The Banks’ policies are strictly based on RBI guidelines of Corporate Governance, and applicable to all Board of Directors and Chief Executive Officer which are being complied promptly by us.

We have recently started using Webex sessions for reviewing the performances of our Branches. This is helping us in getting in touch with our Branch Heads, without any need for them to come over to AO for these meetings. This feature also gives us opportunity to have video conference with facility to discuss the information/data shared over the screen.

We shall be starting Inspection and Audit wing in the month of July,2023 to take up the responsibility of conducting on regular basis Inspections of all Branches (with Risk Based assessments in view) and also on ongoing basis, Concurrent Audit of the selected Branches.

In recent times, many cyber frauds/threats are happening in few Banks including Cooperative Banks, there by resulting in heavy loss of money. To mitigate the risk involved in mobile banking, CTS/UPI, the Reserve Bank of India has prescribed cyber security controls based on a graded approach, vide their circular of December 19 2019. And as you are aware, our Bank is categorized under Level-II under this approach. As per the directions received from RBI, Cyber Security Audit and IS Audit are in progress in the Bank, with a view to assess the Bank’s compliance to the Graded approach of Basic Cyber Security Framework.

Further, as you are aware, we have created a Technology Reserve Fund of Rs.2.50 lakhs, last year, for meeting Cyber Security & IT related projects as a part of RBI Vision Document 2020-2023. We have added Rs.1.50 lakhs more this year, to make the total amount Rs. 4.00 lakhs.

As you are aware, your Bank has migrated to Core Banking Solutions provided by BSG IT soft Pvt Ltd, in order to fulfill the prescriptions given by Reserve Bank for Cyber Security Controls and it is functioning smoothly since February 2020. We also got Migration Audit done (during 23rd August, 2022 to 29th August, 2022) to ensure that the migration was smooth and trouble free.

Further, as you are aware, AXIS Bank is the settlement banker for all the digital payment services being provided to our customers, while IDBI Bank is engaged for parking CRR funds etc.

We have now four onsite ATMs at all our branch locations.

• And our customers are utilizing the services of ATM, IMPS (Mobile Banking & Branch Banking), E-Commerce, POS, BBPS. We are providing them Rupay ATM cards and we have added UPI services last year for the benefit and ease of doing customer transactions from anywhere.
• We are working with BSG IT Soft for providing Mobile Banking Application with facility to do NEFT as well as IMPS.
• We are providing RTGS/NEFT services, at our branches, to all our customers at nominal cost.
• Transaction Alerts are being sent by SMS to all our customers. We are also using SMS service to communicate important information to our customers. We are also planning to send SMS to greet our customers on their birthdays.
• Our flagship product in Advances i.e., Kranti Short Term Loans, is quite popular with our customers, where the needy persons, who are into retail business, are extended finance towards meeting the working capital gap.
• This finance is given with a maximum of Rs.2.00 lakh and with facility of collecting daily from them through UPI services and renewing again on every 90/120/150 days as the case may be.
• This facility is availed by many of our members who are also happy because they have come out of clutches of private lenders who charge high interest rates.

And as you all know, the philosophy of Kranti Bank is to continue to remain dynamic in the ever-changing banking environment and the needs of customers, to provide safe & secured banking services to all our Customers and finally to be achiever in terms of Profit & Business growth while being true to our motto.