A. S. Rajeev
Managing Director & CEO
Dear Shareholders,
I extend a very warm welcome to each one of you to the 18th Annual General Meeting of
your Bank. Global and Indian economy in FY
2020-21 have been adversely affected due to COVID-19 pandemic.
Lockdowns of varied degree imposed due to pandemic resulted in adverse impacts on all
sections of life. The informally employed, and those who work in contact-intensive sectors
are hit hard by this pandemic. Recovery from the pandemic in various regions will depend
on access to medical support, progress in vaccination drive and effectiveness of support
given by the Central Bank and the
Government. The global community will require to work closely to bring the pandemic
under control by increasing funding to accelerate access to vaccines. Strong Cooperation
is also required to support developing countries with high debt levels for international
liquidity.
FY 2020-21 was a difficult year for life and business. Gross Domestic
Product (GDP) during 2020-21 is estimated to contract by 8.0% as compared to growth of
4.0% in 2019-20. The Government announced a package of INR 20 lakh crores (equivalent of
10% of IndiaRs.s GDP) under Atmanirbhar Bharat. The package also included change in
definition of MSMEs, new PSU policy, commercialization of coal mining, and higher FDI
limits in various sectors. Other steps such as launch of Emergency Credit Line Guarantee
Scheme (ECLGS) 2.0 and asset classification relief provided to borrowers on account of
COVID-19 were announced.
During the year, the bank has taken new business initiatives as under: l
Introduction of loan products for business, agriculture and personal expenses to deal with
COVID-19 pandemic inflicted cash flow difficulties. l National Common Mobility
Card (NCMC) – The Bank partnered with NPCI for issuance of National Common
Mobility Card (NCMC) using Near Field Communication.
l Bharat Bill Pay System (BBPS): BBPS is a one-stop ecosystem for payment of
all bills providing an interoperable and accessible "Anytime Anywhere" bill
payment service to all customers across India with certainty, reliability and safety of
transactions. l QUICK pay: A mobile app has been developed for merchant to
do self-registration for QR code to acquire transactions through Scan & Pay. l Digital
Document Execution (DDE): Bank has integrated with National E-Governance Services Ltd
(NeSL) for implementation of Digital Document Execution (DDE) Platform is a Web API based
platform/service for e-signing and e-stamping of Loan documents. l Credit Card:
Bank introduced its own Credit Card with plethora of features to tap the burgeoning
digital business. l MahaBank SHG Rahat Yojana- COVID-19 was introduced
immediately after foreseeing the effects of COVID-19 pandemic situation to extend relief
to regular repaying SHGs by extending additional loan up to Rs. 1.00 Lakh.
Performance of your bank:
BankRs.s performance during FY 2020-21 was outstanding despite all odds. l Net
Profit increased to Rs. 550 Cr in FY21 from Rs. 389 Cr in FY20. There was an annual
increase of 41.39% l Operating Profit increased 39.02% to Rs. 3,958 Cr. in FY21
from
Rs. 2,847 in FY20 l Gross Non-Performing Assets (GNPA) ratio and Net
Non-Performing Assets (NNPA) ratio improved to 7.23% and 2.48% respectively as on
31.03.2021 as compared to 12.81% and 4.77% respectively as on 31.03.2020 l Total
Business of the bank has increased from Rs. 2,44,955 Cr. as on 31.03.2020 to Rs. 2,81,659
Cr as on 31.03.2021. Business of the Bank showcased annual growth of 14.98%. l
Total deposits of the bank increased from Rs. 1,50,066 Cr. as on 31.03.2020 to Rs.
1,74,006 Cr. as on 31.03.2021. Total deposits have showcased annual growth of 15.95%. l
CASA deposits have increased form Rs. 75,475 Cr as on 31.03.2020 to Rs. 93,945 Cr as on
31.03.2021 showcasing annual growth of 24.47%. l Gross advances have increased from
Rs. 94,889 Cr as on 31.03.2020 to Rs. 1,07,654 Cr as on 31.03.2021. Gross Advances have
shown year on year growth of 13.45%.
Way forward:
Bank is entering the new financial year 2021-22 at a time when second wave of pandemic
is spreading widely. The stimulus measures and reforms initiated by the Government and
liquidity measures by the RBI are expected to support industrial activity and demand.
COVID-19 vaccination program launched in January 2021 will further help with economic
recovery. During these difficulties, we will continue to evolve and provide latest
products and Superior services to our customers. Our bank will continue to improve its
business position while navigating these uncertain times.
A. S. Rajeev
Managing Director & CEO