Saraswat Bank Income Statement

The Ninety-third Annual General Meeting of the Members of The Saraswat Co-operative Bank Ltd. , will be held on Thursday, 14th July, 2011 at 4. 00 p. m. at Yogi Sabhagruha, near Dadar Central Railway Station, Behind Swami Narayan Mandir, Dadar (East), Mumbai – 400 014 to transact the following business concerning the Bank: 1. To consider and approve the Annual Accounts, which consist of the Report of the Board of Directors, the Report 7. and Loss Account, for the year ended 31st March, 2011.

Recommended by the Board of Directors for the year ended 31st March, 2011. By Order of the Board of Directors their remuneration. The Board of Directors recommends M/s Kulkarni & Khanolkar, Chartered Accountants, 13/14, Bell Building, Sir P. M. Road, Fort, Mumbai – 400 001; for appointment as Statutory Auditors. 4. To approve amendment to the Bank’s Bye-law No. 4. Mumbai : 30th April, 2011 Sd/S. K. Banerji Managing Director 5. 6. To approve amendment to the Bank’s Bye-law No. 7.

To place for consideration and adoption, the Annual Report and Audited Accounts of Saraswat Infotech Ltd. (Bank’s wholly-owned subsidiary company, registered under Companies Act, 1956), which consist of the Report of the Board of Directors, the Report of the Statutory Auditors, year ended 31st March, 2011. To grant Leave of Absence to the members of the Bank other than to those whose names appear in the Attendance Register of this 93rd Annual General Meeting. NOTE: The printed Annual Report of the Bank consisting of the Report of the

Board of Directors, the Report of the Statutory Auditors, The printed Annual Report consisting of the Report of the Board of Directors, the Report of the Statutory Auditors, the Balance Sheet also enclosed to this Notice. If there is no quorum for the Meeting at the appointed time, in terms of Bye-law No. 48, the Meeting shall stand adjourned to 5. 00 p. m, on the same day and the Agenda of the Meeting shall be transacted at the same venue irrespective of the Rule of Quorum.

Dividend, when declared, will be paid on or after 20th July, 2011, to those shareholders whose shares are fully paid as on 31st March, 2011 and whose names are on the record of the Bank as on 18th June, 2011. If any member desires to have information in connection with the Accounts, he/she is requested to address a letter to the Managing Plot No. 953, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, not later than 11th July, 2011, so that the required information may be made available at the Annual General Meeting. TO SERVE YOU BETTER: 1.

Shareholders are hereby requested to kindly verify their name and address on the Annual Report sent to them. Change in address, if any, may kindly be intimated by post or by e-mail to Share Department of the Bank for updating Bank’s records. E-mail address of the Share Department is [email protected] com Shareholders are requested to avail of the nomination facility by submitting prescribed Nomination Form, as required under Section 36 of the Multi-State Co-operative Societies Act, 2002 and Bye-law No.

19. Shareholders having Current/Savings Bank/Cash Credit accounts with the Bank and desirous of crediting their dividends to their accounts are once again requested to record their standing instructions with the Share Department. Kindly despatch Form – A on page no. 135 requesting Annual Report in Marathi, if you so desire / or requesting to send the Annual Report in English electronically – to our Share Department.

Unclaimed Dividend Notice is hereby given that dividend for the year ended March 31, 2008 (87th Dividend) if not drawn on or before 31st October, 2011, will be forfeited by the Bank and credited to the Reserve Fund in terms of Bye-law No. 68A. 2. 3. 4. 2 Annual Report 2010-11 BOARD OF DIRECTORS (As on 31st March, 2011) Shri E. K. Thakur, B. A. (Hons. ), C. A. I. I. B. Chairman Shri K. V. Rangnekar, M. A. Vice-Chairman DIRECTORS Shri M. K. Mantri, M. A. Late Shri R. K. Patkar, B. A. (Hons. ), B. Com. (upto 22nd July, 2010) Late Dr. Subhash V.

Bhende, M. A. , Ph. D. (upto 20th December, 2010) Shri A. V. Dubhashi, B. Com. , A. C. A. Shri S. V. Deshpande, B. Com. , LL. B. Shri H. M. Rathi, B. Com. Shri S. D. Panse, B. Com. , F. C. A. Shri S. S. Sanzgiri, B. A. Shri A. A. Pandit, B. Com. , F. C. A, D. B. F. Shri S. S. Shirodkar, Dip. (Indl. Electr. ), PGDM Shri S. V. Saudagar, B. Com. , F. C. A. , D. I. S. A. Dr. (Mrs. ) Anuradha P. Samant, M. B. B. S. Shri M. V. Desai, B. Com. Shri S. K. Banerji, B. Sc. (Hons. ), D. B. M. , LL. M. , FIIBF. Managing Director ADVISOR TO THE BOARD Shri N. R.

Warerkar, B. Com. , C. A. I. I. B. ADVISOR FOR PROJECTS Shri S. N. Sawaikar, M. Com. , DMA, C. A. I. I. B. Principal Advisor (BPR) STATUTORY AUDITORS M/s Kulkarni & Khanolkar, Chartered Accountants LEGAL ADVISORS Dr. B. R. Naik, LL. M. , Ph. D. Shri A. V. Sabnis, LL. B. Shri K. M. Naik, B. A. , LL. B. Shri S. N. Inamdar, B. Com. , LL. B. M/s Little and Company Govind Desai Associates Shri Shekhar Naphade, B. A. , LL. B. BANKERS State Bank of India, Bank of India, HDFC Bank Ltd. , Wells Fargo Bank N. A. , Standard Chartered Bank Ltd. , ICICI Bank Ltd.

WHOLLY-OWNED SUBSIDIARY SARASWAT INFOTECH LIMITED Shri E. K. Thakur, B. A. (Hons. ), C. A. I. I. B. Chairman Shri S. K. Sakhalkar, M. Com. , PGD (I. R. ), PGD (Comp. Sc. ) Shri D. M. Chandgadkar, M. Com. , LL. B. , C. A. I. I. B. , A. C. S. 3 Annual Report 2010-11 PERFORMANCE HIGHLIGHTS Table A Particulars Total Income (` in Crore) FOR THE YEAR ENDED 31-Mar-10 31-Mar-11 1,458. 20 1,690. 86 1,242. 36 1,332. 67 215. 84 358. 19 36. 68 63. 39 179. 16 294. 80 40. 00 81. 23 139. 16 213. 57 19. 49 1. 30 119. 67 212. 27 AT THE YEAR END 1,270. 37 1,473. 49 86. 23 102.

83 1,184. 14 1,370. 66 14,266. 73 15,800. 96 1,244. 30 1,050. 94 3,003. 37 3,513. 15 10,019. 06 11,236. 87 9,250. 35 11,511. 99 9,151. 61 11,433. 19 98. 74 78. 80 5,300. 48 5,765. 90 57. 30% 50. 09% 2,946. 54 2,443. 75 689. 47 526. 94 1,664. 47 2,795. 21 17,071. 06 19,186. 27 5,321. 39 5,253. 77 562. 00 845. 62 0. 00 0. 00 14. 63 12. 74 1,34,417 4,94,292 200 2,911 8. 08 4. 11 0. 74 2. 61 1,62,560 5,26,331 216 3,338 8. 18 6. 36 1. 16 3. 52 % Change 15. 96% 7. 27% 65. 95% 72. 82% 64. 55% 103. 08% 53. 47% -93. 33% 77. 38% 15. 99% 19. 25% 15. 75% 10. 75% -15. 54% 16.

97% 12. 15% 24. 45% 24. 93% -20. 19% 8. 78% -17. 06% -23. 57% 67. 93% 12. 39% -1. 27% 50. 47% 0. 00 Less: Provisions Own Funds Share Capital Reserves and Surplus Deposits Current Savings Term Advances Secured Unsecured Priority Sector % to Advances Small Scale Industries Small Businessmen and Traders Other Priority Sectors Working Capital Investments Net NPAs (%) Capital Adequacy (%) Number of Members Regular * Nominal Number of Branch Licences/Branches Number of Employees Productivity per Employee ` in lac) Return on Average Assets (%) Net Interest Margin (%).

4 Annual Report 2010-11 REPORT OF THE BOARD OF DIRECTORS Dear Members, Your Directors have great pleasure to present the Ninety-third Annual Report on the business and the operations of your Bank together with the Audited Accounts for the year ended 31st March, 2011. comprehensive because besides the shareholders, they are read by all stake-holders, including our employees. Your Board of Directors publishes such Annual Reports because it believes that reducing information asymmetry between insiders and outsiders is vital to good corporate governance.that prevailed during the period under Report. 1. THE GLOBAL ECONOMY AND INDIA:

The world economy entered FY 2010-11 on a stronger note as compared to the preceding year, emerging advanced economies, the US economy registered orders, business activity and consumer spending. However, US economic growth faced various risks weak labour market and tightening Policy rates in the emerging economies.

To sustain growth, the US Federal Reserve (FED) came out with another round of quantitative easing (QE2) and decided to buy Government securities aggregating to USD 600 & Poors’ (S & P) downgraded the credit outlook for the US from stable to negative, citing a failure to S & P also indicated a one-in-three chance that it A downgrade in the credit rating will cause a spike in mortgage rates and tighten credit conditions across (January-March 2011) growth of only 1. 8 per cent.

As regards the Euro Zone, the pace of recovery during the year seemed fragile as wide divergences in economic growth between the core and the peripheral members became more ingrained. High level of unemployment, combined with subdued private consumption raised concerns about the impact of the risk of a possible derailment of the recovery in Europe. Germany remained the main driver of growth in the region. The debt and macroeconomic problems in Portugal, Ireland, Greece and Spain (PIGS) persisted. In case of Portugal, its sovereign rating was downgraded by one notch by Moody’s from A3 to Baa1, i. e. junk status.

Economic recovery in the U. K. accelerated considerably during the initial part of this year, driven by private sector spending. The fourth quarter however saw some hiccups, following a sharp slump in construction and investment activity. The downsides remain in the form of weak housing The economic growth in Japan remained robust FY 2011-12. This will be primarily due to the low base effect of 2010 wearing off, as well as concerns over the impact of the recent earthquake, tsunami and nuclear power-plant crises. In its efforts to calm recent disasters, the Bank of Japan recently pumped $147. 2 billion funds into the money market.

5 for credit creation and spending. The fourth quarter level but a sustained higher unemployment level at 8. 8 per cent. For the whole of FY 2010 (Januaryafter shrinking 2. 6 per cent in FY 2009 (Januarydebt situation received a reality check as Standard Annual Report 2010-11 Emerging markets continued to outperform the advanced economies, with Asia in the lead. China and India have led Asia in its growth revival. Loose monetary policy in developed economies, appreciating Emerging Markets (EM) currencies, robust growth and high interest rate differentials vis-a-vis developed economies attracted investors to emerging markets.

The Indian Economy: During the year under review, the Indian economy kharif crops. However, the easing was short-lived once again spiralled owing to The higher than e forecast upward from 5. 5 per cent estimated earlier 2011 was at 9. 1 per cent, which is well above the RBI’s revised rate. GDP growth, at 8. 5 per cent for FY 2010-11, reverted to its earlier high growth trajectory aided by a rebound in agricultural growth, with the services sector maintaining its momentum. Satisfactory kharif production and higher rabi sowing contributed to the agricultural growth, which stood at 5. 4 per cent for FY 2010-11.

The Services 9. 4 per cent for FY 2010-11. Industrial growth recorded an increase of 8. 2 per cent during FY 2010-11, driven by the performance of the manufacturing and the mining sectors. A higher base effect had an adverse impact on the industrial growth rate in the second half and it resulted in moderating the contribution of the industrial sector to the GDP. Terming India’s economic recovery as ‘robust’, the World Bank in its India economic update, has projected the Indian economy to grow by about Price situation: an uncertain outlook on international commodity prices (with the Brent Crude category at USD 108.

6 per barrel in March 2011), incomplete pass-through to domestic prices and possibility of prices of food, fuel, Overall, the economy is currently facing an acute there seems a distinct possibility that the rate hike Fiscal situation: in FY 2010-11 against the budgeted estimate of revenues remained the prime reasons for the arrest pegging it at 4. 6 per cent of GDP. However, controlling burden arising out of high international oil prices, the effect of which has not yet been completely passed on. Monetary and Liquidity Conditions: Broad Money supply (M3) growth at 15.

9 per cent y-o-y during FY 2010-11 was lower than RBI’s estimate of 17 per cent. RBI had estimated 18 per cent rise in deposits. During appeared relatively unattractive. However, owing to concern during the year, remaining in double digits in particular, has remained in double digits for more than a year, thereby prompting the Reserve Bank of India (RBI) to shift its accommodative policy stance to a tightening one, through repetitive rate hikes. The RBI increased the key Repo rate seven times during remain above the target level throughout the year. 6 Annual Report 2010-11

tight liquidity conditions, Banks raised deposit rates sharply during the last quarter of the year. Resultantly, deposit mobilization gathered momentum leading to money supply growth. This reduced the Banks’ dependence on LAF borrowing which at one point of time had crossed ` one hundred thousand crore. The non-food credit growth registered 21. 2 per cent rise by March 2011 which was marginally higher than RBI’s projections of 20 per cent. Investment demand in the economy had thus resumed its buoyancy. tight liquidity conditions. They mostly remained above the upper bound of the LAF corridor.

With strong credit growth not matched by commensurate per ounce on the back of a weak US Dollar as the Federal Reserve had determined to keep interest rates near record lows. When policy interest rates are low, people keep or transfer their savings often to precious metals. FED’s interest rate Policy will thus continue to fuel the demand for alternatives to the US Dollar such as precious metals. Overall Assessment: a percentage point lesser than in FY 2010-11, with the fundamentals remaining strong. Apprehensions eight months and will pose a major challenge to the the comfort level of RBI.

With commodity prices, and in particular, crude oil prices remaining at elevated their deposit rates. Financial Markets: higher note for the Indian equity market. Stock and impressive corporate performance. The equity market underachieved and remained volatile during macroeconomic uncertainties. Overall, the BSE 19,445 as on 31st March, 2011. Debt markets witnessed an upward shift in G-sec yields across the curve due to RBI’s tightening monetary stance. The benchmark 10-year yield hardened from 7. 84 per cent to 8. 23 per cent by January 2011. However, by end-March 2011, it settled at 7. 98 per cent on the back of lower than

as well as go in for tightening of Policy rates during Tight money policy will result in higher interest rates on deposits and advances, lesser credit growth, higher yields on G-secs – which all will, in turn, a trade-off between sustenance of high growth and for RBI. Measures taken by RBI: RBI is engaged in a constant endeavour to deepen through a host of measures. A few such measures The Indian Rupee, which opened at 44. 77 to a US Dollar for the year, closed at 44. 60 to a US Dollar as on 31st March, 2011. The Indian Rupee currencies, without any intervention or active capital management.

Such maturity of our national currency, if it continues in future, may pave the way for renewed efforts towards capital account convertibility. Silver surged to an all-time high of $ 49. 82 per troy ounce, while gold hit a new record of $ 1,519 listed below: RBI, which had followed an accommodative Monetary Policy in FY 2009-10, shifted its stance decisively from growth preservation to Rate by 175 bps from 5. 00 per cent to 6. 75 per cent, Reverse Repo Rate by 225 bps from 7 Annual Report 2010-11 3. 50 per cent to 5. 75 per cent and Cash Reserve Ratio (CRR) by 100 bps from 5 per cent to 6 per cent.

In order to maintain appropriate and adequate level of liquidity, RBI reduced the Statutory Liquidity Ratio (SLR) to 24 per cent for Scheduled Commercial Banks. It also carried out special LAF auctions and announced bond purchases under its Open Market Operations (OMO). Immediate Future of the Indian Economy: The preliminary estimates of the India Meteorological Department (IMD) indicate a normal rainfall in FY 2011-12, brightening the prospects of a higher There is a short-term trade-off between growth and the cost of credit and such a remedy used to bring Alongside the increase in Policy rates by RBI, the

For further strengthening the capital base of the banks, RBI has issued various guidelines on:(i) Advanced Measurement Approach for calculation of capital charge for operational risk, instruments in their balance sheets, (iii) Use of internal models for calculation of capital charge for market risk, that will be considered as ‘priority sector’ for lending targets, policy regarding Regional Rural Banks, RBI has asked all banks to put in place additional security measures for credit card transactions, RBI has issued penalties for banks in case of overcharging to credit card customers, RBI has constituted a Committee on customer service in banks under the Chairmanship of Shri M. Damodaran, former Chairman, SEBI.

It has also constituted a Working Group for the implementation of International Financial Reporting Standards (IFRS), Besides imposing a monetary penalty for bouncing of SGL transfer forms, RBI has asked banks to make additional disclosures to enhance transparency in their operations:(i) Reporting of repo trades in corporate bonds to various clearing corporations, FY 2010-11 to 4. 6 per cent in FY 2011-12, should also prima-facie lead to slower growth. This target. Thus, over the near-term and particularly in FY

2011-12, we are in for tough times almost closer to those of FY 2009-10. Over the long-term however, even at an annual GDP growth of 7. 5 per cent to 8 per cent, India, with its favourable demographics, abundant entrepreneurial talent, high local consumption, high savings rate, hard-working populace and a strong banking system makes for a positive and promising future for our nation. There are serious issues, though of high corruption at all levels, which all need to be fought with determination and relentlessness. 2. MAJOR DEVELOPMENTS IN BANKING AND FINANCIAL SECTOR IN INDIA: The BPLR system has been replaced by the Base Rate for commercial banks, effective from set in the Banking Industry, 8.

(ii) Reporting of OTC transactions in Paper on the FIMMDA platform, With regard to the debt market, RBI has introduced steps for further deepening the markets as follows:(i) Stripping / reconstitution of Government securities for trading on receipt of interest coupon, (ii) Allowing more participants in the Annual Report 2010-11 currency options market, 3. credit interest rates, RBI has amended pricing guidelines for transfer of equity instruments from a resident Indian to a non-resident Indian and vice-versa under the FDI route, RBI has revised the threshold limit for customer transactions in the RTGS system from ` 1 lac to ` 2 lac and above, facing the nation’s Urban Co-operative Banking sector. MAJOR DEVELOPMENTS IN THE URBAN CO-OPERATIVE BANKING SECTOR:year 2010-11 are listed below:

RBI has allowed well-managed Urban Co-operative Banks (UCBs) to set up off-site ATMs, without seeking approval through the Annual Business Plans. RBI has issued revised norms for UCBs on clearing house managing banks for settling clearing obligations of member banks. Other Important Developments: Mergers of State Bank of Indore with State Bank of India and of Bank of Rajasthan with ICICI Bank became operational and branches of State Bank of Indore and Bank of Rajasthan started functioning as branches of State Bank of India and ICICI Bank respectively from the month of August 2010. Mr. Anand Sinha took over as the Deputy Governor of RBI on 19th January, 2011 from Mrs. Usha Thorat. It must be gratefully acknowledged that during the tenure of Mrs.

Thorat, the periodicity and quality of dialogues with UCBs improved vastly and many important issues confronting the Urban Co-operative Banking sector, which we had voiced from time-to-time, were not only deliberated upon but were also satisfactorily largest co-operative bank in the sector, your Board of Directors takes this opportunity to specially express and record its deep sense of gratitude to Mrs. Usha Thorat, the then Dy. Governor, RBI, for the guidance she gave to your Bank from time-to-time and for the pro-active and constructive manner in which she addressed the long standing issues estate sectors. RBI has issued norms regarding submission of data by UCBs to credit information companies.

which are compliant with the regulatory CRAR, on individual unsecured loans and advances, subject to overall ceiling of 10 per cent of total assets. of 12 per cent or above on a continuous basis, housing, real estate and commercial real estate loans to 10 per cent of their total assets, instead UCBs. RBI has allowed well-managed and Correspondents (BCs)/ Business Facilitators (BFs) using Information and Communications Technology (ICT) solutions. the Chairmanship of Shri Y. H. Malegam for studying the advisability of licensing new Urban Co-operative Banks. 9 Annual Report 2010-11 4. THE COVER PAGE: AB SARA HINDUSTAN HAMARA ! We have truly become an All-India Bank now.

As you are aware, over the past 92 years, we have operation and thereafter in 2009, we had amended our Bye-laws and had applied to RBI for granting us the area of operation of the entire Union of India. The RBI vide their letter no. UBD/MRO/BSS I/6490/12. 07. 228/2010-11 dated 4th January, 2011 crossed ` your Bank to stand at ` 358. 19 crore, an impressive rise of 65. 95 per cent on a y-o-y basis. The net 64. 55 per cent to reach ` 294. 80 crore. The net 77. 38 per cent to reach ` 212. 27 crore. Thus, as indicated in the Chairman’s speech, the Bank has Members will kindly recall that your Board of Directors had promised to deliver a business level of ` 25,000 crore by 31st March, 2011 under Dr. Adarkar Mission-II.

We are happy to inform here that the target of ` 25,000 crore was achieved in November 2010 itself and with the concerted efforts of the dedicated workforce, your Bank today has to its credit a total business of over ` 27,000 crore as on 31st March, 2011. Along with rise in the business level, your Bank has also shown improvement in key ratios viz. Credit Deposit Ratio (72. 86 per cent as on 31st March, 2011 as against 64. 84 per cent as on 31st March, 2010), Cost to Income Ratio (49. 26 per cent as on 31st March, 2011 as against 56. 86 per cent as on 31st March, 2010), Net Interest Margin (3. 52 per cent as on 31st March, 2011 as against 2. 61 per cent as on 31st March, 2010) and Return on Average Assets (from 0. 74 per cent as on 31st March, 2010 to 1. 16 per cent as on 31st March, 2011).

While maintaining net NPA level at zero per cent for the seventh consecutive year.and FY 2009-10, the banking sector was passing through turbulent times. It is a great feeling now to have emerged not only unscathed but also is fundamentally strong and both in the midst of States (Maharashtra, Karnataka, Gujarat, Madhya Pradesh, Goa and Delhi) to the entire Union of India (comprising 28 States and 7 Union Territories of our nation). We are therefore, in a position to apply for the opening of our Bank’s branches in all parts of an application. Your Bank has thus truly become an All-India Bank now. This permission has been possible because of the impressive performance put up by your Bank during the last seven years in particular.

All staff members of the Bank belonging to various cadres in the Bank deserve the credit for this glory. 5. CHAIRMAN’S SPEECH 2010 IN RETROSPECT: The performance of your Bank for the FY 2009-10 was lack-lustre as the whole Indian economy was facing the severe aftermath of global recession. In that backdrop, the Chairman of your Bank, Shri E. K. Thakur, in his speech at the Ninety-second Annual General Meeting held on 25th September, 2010 had announced that the Bank had achieved a business level of ` 24,000 crore by the time of that A. G. M. ; the overall performance of the Bank in various key parameters had also shown remarkable improvement in the post 31st March, 2010 period and that the Bank ` 200 crore during FY 2010-11.

Your Bank is proud to inform you that we have not only maintained the pace of improvement post 31st March, 2010 but have also parameters and have also proved the Chairman right 10 quality. As we move forward, the focus will remain on preserving the asset quality and robustness of the Bank, reaching out to a wider community through a footprint of a larger branch network and secure inclusive growth. In the coming year too, it will be the endeavour of your Bank to effectively pursue and Annual Report 2010-11 business growth, a healthy bottomline, maintaining asset quality, achieving a strong CRAR, upgradation of technology and continued investment in human resources of the Bank for enhancement of their knowledge and skills as also for improvement in customer service. 6.

MAJOR ACHIEVEMENTS DURING FY 2010-11: During the year, your Bank has actively pursued its set goals, within the regulatory framework and in a achievements of your Bank during FY 2010-11 are as follows: (A) During the FY 2010-11, total business of the Bank (i. e. deposits plus advances) increased from ` 23,517. 08 crore as on 31st March, 2010 to ` 27,312. 95 crore as on 31st March, 2011 i. e. an absolute growth of ` 3,795. 87 crore and of 16. 14 per cent, on a year-on-year (y-o-y) basis. (B)

The deposits grew from ` 14,266. 73 crore as on 31st March, 2010 to ` 15,800. 96 crore as on 31st March, 2011 i. e. a rise of 10. 75 per cent, while advances increased from ` 9,250. 35 crore as on 31st March, 2010 to ` 11,511. 99 crore as on 31st March, 2011 i. e. a rise of 24. 45 per cent. (C) You are aware that during the last quarter of FY 2009-10, we had acted as a nodal intermediary for MHADA.

In that role, we had garnered a total MHADA-related business of ` 1,340. 34 crore. Though that business was for a period of three-four months, as we procured it in the (D) The Credit Deposit (CD) Ratio has improved from 64. 84 per cent as on 31st March, 2010 to 72. 86 per cent as on 31st March, 2011. This as our aggressive credit marketing. Our credit and wholesale – worked ceaselessly, used credit processing, sanctions and disbursements. items) has improved from ` 179. 16 crore in FY 2009-10 to ` 294. 80 crore in FY 2010-11. ` 119. 67 crore in FY 2009-10 to ` 212. 27 crore in FY 2010-11, which is the highest ever net a sharp rise y-o-y of 77.

38 per cent. It must be admitted that this hefty percentage increase is partly owing to a low base in FY 2009-10 when of a precipitous fall in credit demand and lower returns on investments. However, even after accounting for that setback, there is a sharp (F) During FY 2010-11, we could reprice deposits of over ` 1,900 crore with lower interest rates. This resulted in a drop in the cost of deposits. A sharp rise in interest income coupled with drop in cost of deposits has helped Bank’s Net Interest Margin (NIM) improve substantially by 91 basis points on a y-o-y basis from 2. 61 per cent as on 31st March, 2010 to 3. 52 per cent as on 31st March, 2011.

(G) The Cost to Income Ratio dropped from 56. 86 per cent as on 31st March, 2010 to 49. 26 per cent as on 31st March, 2011, for the reasons already stated at (F) above. ` 4. 11 lac as on 31st March, 2010 to ` 6. 36 lac as on 31st March, 2011 in spite of the addition of 427 employees to the total workforce of your Bank. (I) The Business per Employee grew from ` 8. 08 crore as on 31st March, 2010 to ` 8. 18 crore as on 31st March, 2011. This rise is in spite of the fact that your Bank added 427 employees to its human resources, as pointed out herein above. 11 FY 2009-10. Deposits and advances so garnered under the MHADA scheme are considered a transient addition to our business.

If that transient business is deducted, then as the MHADA-related business is out of our books now, the growth year-on-year over FY 2009-10 of total business stood at ` 5,136. 21 crore of which growth in deposits stood at 18. 35 per cent, while advances over the same period scaled up by 30. 25 per cent, both of which are much higher than the industry average (Banking industry deposits grew by 15. 37 per cent and advances increased by 20. 60 per cent y-o-y during the same period). Annual Report 2010-11 (J) All the gross NPAs have been fully provided for your Bank continued to retain its coveted position as Zero Net NPA Bank, for the seventh successive year.

The Provision Coverage Ratio (PCR) of your Bank is a healthy 100 per cent, as against PCR of 75 per cent, which is prescribed by RBI for commercial banks. (K) The own funds of your Bank have increased from ` 1,270. 37 crore as on 31st March, 2010 to ` 1,473. 49 crore as on 31st March, 2011. The Capital to Risk-Weighted Assets Ratio (CRAR) is now at 12. 74 per cent, well above the 9 per cent prescribed by RBI. branch network during the year under Report. The total number of functional branches grew to 216 as on 31st March, 2011. These include 209 Branch. (M) Business per Branch rose from ` 117. 58 crore as on 31st March, 2010 to ` 126. 45 crore as on 31st March, 2011.

This increase in average business per branch is in spite of the addition The achievement of per branch business has branches and their average business, which is as follows: Table No. 1: (` in crore) Position as on 31st March, 2011 Legacy Branches (Original Saraswat Bank branches) New Branches – Legacy Gandhakosh Branches Gandhakosh Branches (Transferred from Legacy Saraswat Bank) New Branches – Gandhakosh SME Branches Overseas Branch TOTAL No. of Branches 83 34 60 3 29 6 1 216 Average Business 176. 21 26. 62 67. 38 212. 68 60. 25 850. 06 253. 67 126. 45 and these branches will contribute to Dr. Adarkar Mission-III and IV surely and substantially. Therefore, achieving a business level of ` 1,00,000 crore before FY 2021 is indeed a matter of course and a matter of time mainly.

single day in Ahmedabad, making a decisive and emphatic entry in that major city. Besides, we added one branch at Surat and opened one at Vapi in Gujarat State, thus taking the total number of branches in the State of Gujarat to eight, broadening our base in the State. (O) In FY 2008-09, your Bank had opened a branch in the National Capital Region, New Delhi at Lajpatnagar. Your Bank received overwhelming response in the Delhi region and by 31st March, 2011, the Lajpatnagar branch alone grossed a business of ` 734. 32 crore. Enthused by this performance, your Bank opened its second branch in the heart of the National Capital at Connaught Place, New Delhi during the year under Report. 7A.

THE TEN EVENTFUL YEARS (2001-2011) OF THE NEW MILLENIUM: Your Board of Directors is indeed pleased to report Bank has achieved over the last decade, which is last ten years, the Bank has grown its Balance ` 27,300 crore business, which is a remarkable performance in the history of co-operative banking in the country. The growing business level is supported