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Chairman's Message

I feel privileged to present the Annual Report for the second consecutive year, along with the Financial Statements of the Bank, the Bank’s performance, important milestones reached during the Financial Year 2019-20.

Financial Year 2019-20 was a tremendous year for our Bank. We excelled in all business parameters including profitability. Total Business of the Bank has reached a level of ` 5013.56 crore with a growth of ` 1187.49 crore at 31.04% from ` 3826.06 crore (at 18.19% during FY 2018-19). We have crossed a milestone of both ` 4000 crore and ` 5000 crore mark in the same financial year. Our Bank has surpassed the MoU targets set by our Sponsor Bank under major parameters, by registering ` 3478.13 crore Deposits increased by a record-breaking ` 883.08 crore at 34.03% and ` 1535.43 crore Advances increased by ` 304.42 crore at 24.73%. Our CASA % stood at 59.71%, although we could not increase the share of CASA to total deposits during 2019-20, there was a growth of ` 419.21 Crore at 25.29% compared to the growth of ` 329.41 Crore at 24.80% during 2018-19. In spite of welcoming 59 new staff during the year, we still managed to increase our business per employee to ` 10.99 crore, up from previous FY figure of ` 9.15 crore.

This year, we have posted an audited net profit of ` 13.32 crore despite putting over ` 60 crore in provisions for NPAs and pension liabilities. The Operating Profit of the Bank (Before provisions and contingencies) stood at ` 92.44 crore at 34.48% as on 31.03.20 vis-à-vis previous FY’s figure of ` 68.74 crore, this is due to increase in income in all areas i.e., interest on advances, investments, decrease in expenses ratio and decrease in cost of deposits etc. during the year. Capital Adequacy Ratio stood at 9.80% as against the indicative level of 9% for Regional Rural Banks.

We have spent tremendous amount of time and energies in reduction of NPAs. Several workshops were conducted on NPA management, Recovery mechanism and One Time Settlement (OTS) scheme for Branch Managers and newly recruited. An exclusive post of Desk Officer (NPA) was created in each region who is in-charge and responsible for reduction of NPAs who will supplement to the efforts of branches, we have also formed District level Recovery Teams. Branch wise and account wise follow up and monitoring was delegated to the officials in Head Office and Regional Offices which have resulted in decreasing our Gross NPA to 5.19% and Net NPA to 1.41%. Provision Coverage Ratio now stands at 72.73% as against 60.72% of the previous FY.

The Bank has given utmost importance to continuous training at our own Learning Centre and outside Institutes. The Bank had laid down a Training Policy which envisages training Page | 2 Annual Report 2019 - 20 to all staff members, at least once in a year. We have designed training programmes specifically aiming at capacity building of the young Branch Managers and new recruits, on subjects like Branch Management, Legal aspects, documentation etc. During the year, MRB has conducted 10 (ten) training programmes and provided training to 417 staff members. We have identified some senior and head office officials to handhold the new recruits to make them conversant with the systems and procedures of the Bank and to gain expertise in day to day branch operations. The Bank has also deputed 32 Officers, essentially in the higher cadres, to external training institutions like BIRD (Lucknow), BIRD (Mangalore), State Bank Learning Centres on important subjects like AML, ALM, KYC, RTI Act, Business Development etc. I am sure this will take the Organisation to attain its full potential in the years to come.

I feel happy to inform that Bank has introduced good number of IT initiatives. The significant IT initiatives introduced during this year include Mandate Management System, Domain Email Systems, Upgradation of the branch connectivity to 2 Mbps RF from 32 Kbps VSAT connectivity, AePS, printed Term Deposit Advice through CBS. Mobile Banking and other Alternative Delivery Channels have been popularized widely among the customers, as a result Mobile banking transactions started picking up by achieving 12,354 Mobile Banking registrations during the year, taking the total to 29,913. Our motto is to increase the usage of Alternate Delivery Channels in the years to come to become more digital. During the year eRIM (electronic Returns In MRB), Intranet-based e-Circular and Centralized Document Storage System were also developed in-house.

I place on record our sincere gratitude to the Government of India, Government of Mizoram, State Bank of India, Reserve Bank of India and National Bank for Agriculture & Rural Development for their valuable support for the growth of the bank. My sincere thanks to our Board of Directors for their valuable guidance, gesture and support all through the Board Meetings.

I personally thank each and every member of the bank’s work force for the historic and unprecedented performance recorded in the financial year 2019-20. It’s possible just because of the hard work of front line soldiers working in Branches and the trust of more than 9 lakh satisfied customers and well-wishers of the Bank across the state reposed in us.

Yours sincerely,

(V. Jaya Chandra)
Chairman

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Largest Branch Network in
Mizoram.
Mizoram Rural Bank
Head Office : B-5, Babu Tilla
Zarkawt : P.B.No. 160
Aizawl - 796007
Mizoram
Nodal Officer for Customer Grievance Redressal
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