Chairman Speech
CHAIRMAN’S REPORT TO THE SHAREHOLDERS
Dear Shareholders
On behalf of the Board of Directors of your Bank and on my personal behalf, It gives me immense pleasure to welcome you to this 28th Annual General Body Meeting and to place before you, the high lights of your Bank’s performance during the financial year 2025-26.
ECONOMIC OVERVIEW – INTERNATIONAL & DOMESTIC
- Despite the global challenges India’s economy remains the world’s fastest-growing major economy, with projected GDP growth of 6.5% to 6.8% for the 2026–27 fiscal year, moderating from a stronger 7.7% in FY26. Growth is primarily anchored by resilient domestic consumption, continuous infrastructure capital expenditure, and a structurally expanding services sector.
YOUR BANK’S PERFORMANCE
I am happy to share with you some of the highlights of the Bank for the year 2025-26 in comparison to previous year.
- The Share capital and Reserves/surplus of your bank have increased during the FY 2025-26 to Rs.837.98 Lakhs as against Rs.801.46 lakhs during previous FY 2024-25.
- The face value of the investments of your bank stood at Rs.1873.08 lakhs for the FY2025-26 and the capital to risk weighted ratio (CRAR) has stood at 26.55% as against the statutory requirement of RBI of only 9.0%
- The Deposits of the Bank have registered a moderate growth and the figure for the FY 2025-26 stood at Rs.5417.25 Lakhs (an increase of Rs.488.24 lakhs i.e. 9.91%) (as compared to the previous year’s figure of Rs.4929.02 lakhs)
- Priority sector lending of the Bank stood at 72.19% as against the minimum stipulated norm of 60% as per RBI latest guidelines, and weaker section was 22.36% as against RBI norms of 12% and Micro enterprises was 47.66% as against RBI norms of 7.5%. The Unsecured loans constituted only 0.1% of the total assets as against stipulated norms of not exceeding 20% of total assets.
- The profit before tax for the Financial Year 2025-26, stood at Rs.84.53 Lakhs which is Rs.3.48 lakhs more than last year’s profit of Rs.81.05 lakhs. (After absorption of additional expenditure of Rs.8.83 lakhs on account of provision for NPAs and additional provision on standard assets due to revision of RBI norms).
- The deposits have been insured for the entire deposits level and DICGC cover obtained up to 5.00 lacs individually as per DICGC norms.
- The Business per employee stood at Rs.559.91lakhs and profit per employee Rs.3.90 lakhs
- Declaration of Dividend: The Bank has been paying dividend consistently every year. Keeping
- in line the consistency levels, the Board of Directors have recommended a pro-rata dividend @10% for approval of members of General Body.
Your Bank is classified as “Class-A” Bank by the Auditors.
WAY FORWARD
- 1. It is our pleasure to mention that we are opening a new branch at Habsiguda for extending your bank services to new area and new customers as part of expansion program of business.
- 2. Since our Malakpet branch is continuously in losses since its inception, we are in the process of shifting the branch to a new and convenient place at Alakapuri colony besides the inner ring road. We are confident that the branch business will increase many fold and will turn around into profit in a short period. The branch will be shifted in a week day’s time.
- 3. With focus on quality lending, backed by good security, we have already introduced specialized rates at a very competitive rates of interest on Housing Loans upto Rs.25.00 lakhs and above Rs.25.00 lakhs at 10% pa and 11% respectively which will not only augment the housing sector for the lower and middle class customers, which is a priority for every individual but will also expand / support further growth in business & profitability.
- 4. ABOVE ALL YOUR BANK REMAINS COMMITTED TO INCORPORATING PRINCIPLES AND PRACTICES THAT PROMOTE SUSTAINABLE BANKING OPERATIONS.
SINCERE ACKNOWLEDGEMENTS
On behalf of the Board, I take this opportunity to express my heartfelt sincere thanks to all our esteemed shareholders, valued customers, officials of Department of Supervision (DOS) RBI, Officials of Registrar of Co-operative Societies, officials of NPCI, officials of Telangana state coop Urban Banks Federations, Statutory Auditors, Concurrent Auditors, GST Auditors, Legal Advisors, Valuers, for their continued support and guidance to the bank. Our thanks also to the excellent support by our Clearing Banker, HDFC Bank through whom we are sub-member. Our Remittance banker Axis Bank, through whom we have RTGS/NEFT/IMPS/UPI/CASH Management & ATM/POS/E-commerce arrangements. Last but not the least, I place on record my appreciation for the hard work, dedication, commitment and contribution of the staff who have ensured continuous growth of Business of the Bank in all key parameters with personalized service, especially the CEO who is guiding the bank to a right direction with a good value based name for the bank.
I wish all of you and your families to stay well and safe.
Jai Hind
OTHER DETAILS
INSPECTION BY RESERVE BANK OF INDIA:
RESERVE BANK OF INDIA has conducted inspection of our Bank In the month of
March 2024 and the submission of compliance report was completed.
Financials of the bank for the past 5 FYs (Rs. In lakhs)
| S. No | Details | 31.03.22 | 31.03.23 | 31.03.24 | 31.03.25 | 31.03.26 |
|---|---|---|---|---|---|---|
| 1 | Share capital | 423.35 | 417.86 | 424.24 | 436.99 | 446.48 |
| 2 | Reserves | 319.82 | 337.47 | 351.86 | 364.47 | 391.50 |
| 3 | Deposits | 4775.90 | 4891.24 | 4905.01 | 4929.02 | 5417.25 |
| 4 | Advances | 3044.64 | 2801.10 | 3215.72 | 3348.19 | 3541.27 |
| 5 | Total | 7820.54 | 7692.34 | 8120.73 | 8277.21 | 8958.52 |
| 6 | PBT | 77.22 | 76.62 | 70.60 | 81.05 | 84.53 |
| 7 | PAT | 53.99 | 53.90 | 54.55 | 57.34 | 62.34 |
| 8 | CRAR % | 26.98 | 30.40 | 27.60 | 25.79 | 26.55 |
| 9 | CD Ratio | 63.75 | 57.27 | 65.56 | 67.93 | 65.37 |
| 10 | Gross NPA | Nil | Nil | Nil | Nil | 54.71 |
| 11 | Net NPA | Nil | Nil | Nil | Nil | 49.24 |
| 12 | Working capital | 5506.09 | 5635.11 | 5651.08 | 5702.46 | 6225.45 |
| 13 | Net Worth | 743.17 | 755.33 | 776.11 | 801.46 | 837.98 |
APPROPRIATION OF PROFITS:
I am happy to inform the shareholders that your Bank has posted a Net Profit (after tax) of Rs 62.34 lakhs- for the year ending 31-03-2026 an increase of 8.72%% over the previous year’s Net Profit.
And, it is proposed to appropriate the profit (as per Bye-Laws) for the year ending 31-03-2026) as under and the members are requested to approve the same.
| S. No | Particulars | As on 31.03.2025 (Rs. in lakhs) |
|---|---|---|
| i | Net Profit as per the Audited Balance Sheet | 62.34 |
| ii | 25% to be transferred to Statutory Reserve | 15.59 |
| iii | 1% to be transferred to Education Fund | 0.62 |
TAX DEDUCTION AT SOURCE:
Depositors irrespective of the fact that they are Share Holders or not, TDS has to be deducted in case the interest paid on the Deposits exceeds Rs. 50,000/- in a financial year. For senior citizens, this limit has been increased to Rs. 1,00,000/-.
BOARD MEETINGS:
The board meetings were conducted 12 times under the period of review (01.04.2025 to 31.03.2026) and the directors have actively participated in the deliberations.
Various Sub-Committees of the Board met number of times and contributed for the development of the Bank.
