Dear Esteemed Share holders,
On behalf of the Board of Directors of the Bank, it is my privilege to present the Annual Report of your premier financial institution of these Islands as on 31.03.2016 (audited) which has completed 50 golden jubilee this year.
The bank’s operational area extend to the entire Union Territory of Andaman & Nicobar Islands through its 41 branches located right from Diglipur at extreme North to Campbell Bay and the extreme south of Union Territory. Out of the 41 branches, 37 branches are in rural area (around 90) and 4 branches are in urban area, catering to the needs of the people of A & N Islands.
It gives me great pleasure to place before you the highlights of your Bank’s performance during the financial year 2015-16. Details of the achievements and initiatives taken by your Bank are provided in the annexed Annual Report. I would also like to take this opportunity to thank you all for making it convenient to attend this meeting. I express my gratitude to all the customers and well-wishers for their loyalty, patronage and confidence which have always remained a source of inspiration and strength for the Bank.
As you are aware, Banking is on the verge of a change. While the economic scenario is challenging, the regulatory and prudential obligations are becoming more stringent. We are operating under constraints over which there is little control and the external environment has become highly volatile and uncertain. Your Bank has shown good growth amidst such challenging times.
INDIAN ECONOMY & GLOBAL OUTLOOK
The Economy of India is the seventh-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). The financial year 2015-16 (FY16) saw gradual improvement in the growth outlook. A number of factors supported this that includes political stability, improved policy environment, increasing pace of reforms, and firm commitment towards fiscal consolidation. Further, the sharp fall in international crude oil prices has had a positive effect on growth, easing of inflationary pressures, reducing imports and lowering current account deficit. Even so, the macroeconomic environment remained weak during FY15 primarily due to subdued agriculture and industrial growth.
In FY15, the India’s GDP is estimated to have grown by 7.3 in FY16, a shade lower than the government’s earlier projection but above 6.9.
The Banking sector faced multifarious challenges in FY16 with a subdued credit growth, heightening asset quality concerns amidst weakening corporate balance sheets and maintaining capital. Apart from this, the banking sector participated actively in the Pradhan Mantri Jan Dhan Yojana, the biggest financial inclusion initiative of the World. Besides this, the banking space is set to widen with the introduction of newer market participants such as small banks and payment banks in near future.
The bank resolves to achieve continuous and meaningful growth by making effective use of its human resources and leveraging its large network of branches and technology amidst the competitive and challenging environment in the industry in order to expand our market share and to improve values and returns to all our stakeholders.