From the Chairman’s Desk

Respected Shareholders,

I feel honored to present the Banks 29th Annual Report for the year 2014-15 before you and share some important issues.

It gives me immense pleasure to inform that Bank has surpassed the prestigious mark Rs 2000 crores business level. Bank total business at Rs 2046.52 crores showed a y-o-y growth of 17.32%. With the result, the productivity per branch has improved from Rs. 25.65 crores to Rs 27.29 crores during the year. Similarly, productivity per staff has also increased from Rs 6.12 crore to Rs. 6.32 crores. There has been a very good growth of 21.37% and 19.97% in average deposits and advances of the Bank during the year. The Bank has earned a net profit of 214.78 crores during the year. With the Reserves and Surplus of the Bank rising to Rs 140.25 crores, Capital Adequacy Ratio stood at 13% indicating strong financial and liquidity position of the Bank. Gross NPA ratio at 1.76% is well below the peers/ industry average.

To ensure fulfillment of very objectives of the establishment of RRBs, for rural development, Bank’s agriculture advances have shown a robust growth 24.21% during 2014-15.

As a responsible corporate citizen, all benchmark under Priority Sector, Weaker Sections, and Women Beneficiaries stands comfortably surpassed.

I also feel privileged to share some other achievements of the Bank as under: –

1. 1st two ATMs at Patiala and Sangrur operationalised. ATM Card of the Bank has been POS enabled.

2. Seven new branches namely Thuhi, Kakra, Mehargarh Batti, Karala, Jansua, Karhali and Chaunda opened during the year. 5 branches opened in a single day on 13.03.2015 by Sh. Ramesh Rangan, Managing Director, State Bank of Patiala.

3. Financial inclusion: In line with National Priorities, Bank has opened the account of a member of every household in the allocated 234 villages. 35 BCs engaged by the Bank are working successfully on F I Kiosks on a real time basis.

4. To enable to Bank to meet competition. Internet, Mobile Banking, RTGS, IMPS and Biometric Authentication in an advanced stage of implementation.

5. For the benefit of the public in general, in addition to already existing two FLCs, Bank opened its 3rd FLC at Barnala & 4th at Khera will be opened shortly.

6. One officer Scale-III, two officers Scale-II, 19 officers Scale-I, one specialist law and IT officer besides 25 Office Assistants recruited during the year.

Inspite of the aforesaid significant achievements, many challenges are there for the Bank in the year 2015-16 viz: a growth of CASA deposits, reduction of NPAs, increasing non interest income, implementation of e-KYC, AEPS etc., and fulfilling financial inclusion obligations. In view of the anticipated competition from Small Payments Banks/ Pvt. Sector Banks, we need to increase our customer base coupled with management of NPAs besides increasing operational efficiency.

I place on record my sincere gratitude to all our customers, our Sponsor Bank, Reserve Bank of India, National Bank for Agriculture and Rural Development and District Administration of Sangrur, Patiala, Barnala, Fatehgarh Sahib and SAS Nagar (Mohali) for their valuable guidance and being our source of strength and motivation. Further, I am quite sure that the Bank will achieve greater excellence with sincere efforts of our staff as has been done in the past and would like to place on record my appreciation for their team work, sincerity and dedication to achieve the corporate goals.

With best regards