Chairman's Desk

Chairman's Message

T Kameswara Rao

The recovery of economy during 2021 after the pandemic in the preceding year had been encouraging for our banking operations but the momentum got slowed down in the second quarter once again owing to calamitous COVID-19 pandemic.
Against this backdrop, it is my pleasure to state that our bank posted 14.54% growth in the aggregate business during FY2022. Increase of deposits at a growth rate of 11.43% and advances at a growth rate of 17.78% during the year under reference are modestly considered as satisfactory.
The business growth of our bank is better portrayed in terms of CAGR which stood at 17.23% for Deposits, 19.41% for Advances and 18.30% for Aggregate Business for the past five years and it speaks of the trust reposed by our clientele in the services rendered by the bank over the years.
The acceptance of onerous responsibility cast on our Regional Rural Bank (RRB) by the shareholders to provide credit for the growth and sustenance of the rural economy in the area of operation of the bank is reflected in the total disbursement of loans and advances at 117% of the target under MoU with our sponsor bank, i.e. Union Bank of India during FY2022. Moreover, the disbursements under Priority Sector had a lion’s share of 91% of the total.
The CRAR that determines the growth capital, over and above the mandatory requirement of 9.00% for RRBs, has been on the rise over the past three years and stood at 13.68% for March 2022 as against 10.32% for March 2019 paving the way for enhanced credit portfolio during FY2023. It is pertinent to mention that the growth in capital is from internal accruals only.
The financials posted by the bank for FY2022 are quite encouraging and the increase of Return on Equity from 16.68% for March 2021 to 21.13% for March 2022 is an index of financial viability to the shareholders.
With growth in operating profit gaining ground in the banking industry as a prime measure of performance, increase of the same during FY2022 by 32% is regarded as a beacon of hope for the entire workforce of the bank.
The bank is conscious of the changes happening in the banking industry in the country and is prepared for laying down a roadmap for scaling up its business operations in the days ahead.
With the support of all the stakeholders of the bank, I am sure that the bank will continue to be one of the ‘positive RRBs’ in the country, as enlisted by RBI, for the years to come. Thank You All, T Kameswara Rao Chairman