(Chairman Sri Pabba Balaiah address to Shareholders during Annual General Meeting on 30 June 2024)

On behalf of the Board of Directors of your Bank and on my own behalf, it gives me immense pleasure to extend a warm welcome to each one of you, at this 29th Annual General Body Meeting of your Bank.

Your Bank was born and established in the year 1996, and now we are in the 29th Year of its existence. I am happy to place your Bank’s Annual Report & Financial Statements for the financial year 2023-24 in your hands. I would like to list out the highlights and the performance of the Bank during the year.

I am pleased to advise that our bank`s total business mix has crossed Rs 100 crores as of 31st March 2024. Total Business has grown from Rs.7600.36 lakhs (as of 31.3.2023) to Rs.10431.71 lakhs (as of 31.320.24) – 37% growth.

Another important highlight is merger of Twin Cities Cooperative Urban Bank Ltd in our Bank w.e.f.23.8.2023. After the merger, this bank became our Nallakunta Branch which was later moved to Seethaphalmandi.

During the financial year, at the beginning, we had 2527 members with 5,06,380 shares with capital to the tune of Rs. 253.19 lakhs. During the financial year, we have seen that 133 Members with 17366 shares, amounting to Rs. 8.68 lakhs have closed share accounts. During the same period, we have admitted and allotted Shares to 315 new members of 19090 shares valued Rs. 9.54 lakhs. The paid-up Share Capital of the Bank has come down and stood at Rs.261.35 lakhs covering 2709 shareholders with a minimum of 30 Shares each, with total shares of 5,22,694 as on 31.03.2024. We are glad that no complaint was received during the year by the Investors’ Grievance Cell, functioning at the corporate level.

I have great pleasure in advising you all that we have added two more Branches during the financial year 2023-24, thus increasing our Branch strength to six. These were opened at Peerzadiguda and Seethaphalmandi. We have also received a licence to open two more branches in the coming year at Gajularamaram and Neredmet (Malkajgiri). We are in the process of finalizing the premises and plan to open these branches in another two-three months.

Your Bank’s aggregate deposit growth during the year has gone up to Rs.6395.76 lakhs as on 31.03.2024, when compared to the previous financial year i.e. 2022-23, of Rs.4880.98 lakhs.

The absolute incremental growth during the year is Rs. 1514.78 lakhs and the growth rate is 31.03%. The CASA position as of 31.03.2024 is Rs.1552.83 lakhs which is equivalent to 24.27% of total deposits. We are glad to inform that the average cost of deposits as on 31.03.2024 is 6.84%.

Your Bank’s Total Investments in Govt. Securities held as on 31.03.2024 is Rs.1441.77 lakhs, and in term deposits in various banks for different tenors is Rs.639.25 lakhs and in Non-SLR funds invested to the tune of Rs.135.00 lakhs on various occasions. The total Investments are Rs. 2880.39 lakhs.

The Bank has maintained stipulated SLR and CRR as per RBI norms from time to time during the financial year 2023-24.

Our Gross advances as on 31.03.2024 is Rs. Rs.4032.80 lakhs and as on 31.03.2023 was Rs.2719.52 lakhs, The absolute incremental growth during the year is Rs. 1313.28 lakhs registering a positive growth of 48.29% when compared to previous year. The total secured advances as on 31.03.2024 are Rs.3966.90 lakhs (98.36%) and unsecured Advances are Rs. 65.91 lakhs (1.64%), which speaks about the quality of advances.

Out of Rs. 4032.80 lakhs, the exposure to Gold Loans is Rs. 636.70 lakhs, which is equivalent to 15.79% to total Advances and Loans against Deposits is Rs217.91 lakhs, equivalent to 5.40% to total Advances. This speaks, that the immediate liquidity is Rs.854.61 lakhs which is 21.19% of the total advances.

The CD ratio stands @ 63.05% and the average Yield on Advances is 14.59% which is a good return.

RBI has recently announced the 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 97.06% for the FY 2023-24.

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.

The performance of your Bank for the financial year 2023-24 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 of FSWM i.e. Gross NPA of 2.69% and Net NPA of 1.09% 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.63.82 lakhs for the financial year 2023-24, in comparison with the Gross profit for the previous financial year 2022-23 Rs.94.67 lakhs. In absolute terms, the gross profit has decreased by about Rs.31.00 lakhs. This was due to the effect of carry forward losses of the amalgamated bank (Twin Cities Coop Urban Bank) and also the newly opened 3 branches are yet to achieve the break-even level.

Despite the drastic fall in net profit in this financial year, I am glad to announce that the Board of Directors has recommended to AGM to reward shareholders with a dividend of 14% for the FY 2023-24.

In recent times, many cyber frauds/threats are happening in few Banks including Cooperative Banks, thereby resulting in heavy loss of money. To mitigate the risk involved in ATM/UPI, we have started using automated reconciliation and expectation is that it would help us in minimizing risks as well as update housekeeping in this respect.

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.

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.

As you are all aware our bank has taken various steps to improve customer service.

All our existing branches have onsite ATMs attached to each one.

And our customers are utilizing the services of ATM, IMPS (Mobile Banking & Branch Banking), E-Commerce, POS, and BBPS. We are providing them RuPay ATM cards and UPI services for the benefit and ease for customers doing transactions from anywhere and anytime.

We are providing RTGS/NEFT services, at our branches, to all our customers at nominal cost.

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 the facility of collecting daily from them through UPI services and renewing again every 180/365 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 the clutches of private lenders who charge high interest rates.

Similarly, we launched a flagship deposit scheme: KRANTI KALPAVRIKSHA DEPOSIT scheme (1234 days duration) offering 9.00% PA for the general public and 9.50% PA for senior citizens recently to attract and augment our Term Deposit portfolio.

Your bank always remembers that it is neither the hardware nor the software, but the human-ware that is going to improve customer service.

Hence, your bank has been always working towards the improvement of Human Resources in the Bank.

Extended Medi-claim/ Accidental Insurance Cover to the regular on-roll staff and their dependents to the tune of Rs. 4.50 lakhs each as a Social Security Measure. We have already structured the salaries of permanent employees and DA is aligned to the All India Consumer Price Index., to ensure better living standards.

Staff and Senior Executives are being nominated for Webinars of RBI / NAFCUB / Telangana CUB Federation etc., to update their knowledge and skill sets.

On-job training is also being provided to all the staff through Direct Personal interaction, issuing circulars, display of information in the Notice Board, conducting staff meetings etc.

We are glad to inform you that our Bank exceeded the deposit target of Rs.6000.00 lakhs set for the financial year 2023-24 and reached a figure of Rs. 6395.76 lakhs, thereby surpassing the target by Rs.395.76 lakhs. We also achieved the Advance target of Rs.4000.00 lakhs set for 2023-24, and reached a figure of Rs.4032.80 lakhs, thereby exceeding the target by Rs.32.80 lakhs.

This financial year i.e., 2024-25 we have set a target – Deposit Target of Rs.7272.00 lakhs and Advances Target of Rs.5050.00 lakhs ie the total business goal of Rs.12322.00 lakhs.

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 & secure banking services to all our Customers and finally to be an achiever in terms of Profit & Business growth while being true to our motto.