Chairman's Message


Chairman's Message

Dear Stakeholders,

It gives me immense pleasure to place before you the highlights of our bank’s performance during the Financial Year 2022-23. I heartily congratulate the team SGB for placing wholehearted effort on the board during F.Y. 2022-23.

Words are not adequate to recall the excellent performance, sense of involvement, ownership and dedicated services rendered by each and every staff member in achieving the sustained business growth and profit and surpassing major targets set out for the year under MoU with the sponsor Bank.

Business Growth:

The bank’s business has registered a growth of ₹ 1642.24 crore at 12.30% to reach at ₹14989.35 crore as on 31-03-2023. Out of ₹1642.24 crore business growth, 45.93% came from loans & advances while 54.07% came from deposits.

Deposit Growth

Bank has registered ₹887.92 crore i.e. 11.46% growth of deposit as on 31-03-2023 as against ₹658.53 crore i.e 9.3% growth observed as on 31-03-2022. CASA deposits grew by ₹267.41 crore i.e. 7.37% and reached the level of ₹3894.91 crore.

Credit Growth:

The gross advances of bank crossed ₹ 6000 crore mark, and grew at 13.48 % & reached the level of ₹ 6351.94 crore on 31-03-2023 from the previous year level of ₹ 5597.62 crore. Total credit to agriculture & allied activities stood at ₹4572.26 crore with growth of 19.11% as on 31-03-2023.


The Bank posted healthy growth in Net interest income. The Net Interest Income (NII) has increased by ₹40.18 crore (11.90% growth) and reached the level of ₹377.96 crore in FY 2023 against ₹337.78 crore in FY 2022. The interest income of the bank witnessed growth of 12.76% & reached the level of ₹744.62 crore in FY 2023 from ₹660.36 crore FY 2022 backed by stable rise visible in CD ratio in recent past. Expense ratio remained below 40% & credit cost also declined to 0.48% from 0.56%.ROA & ROE remained robust at 1.83% & 20% respectively. The bank’s Operating Profit & Net profit witnessed marginal decline and reached at ₹278.01 & ₹178.53 respectively, owing to reduction in non-interest income.

Healthy Asset Quality Parameters:

The Bank has been able to maintain the gross NPA below 3.00%. Gross NPA of the bank increased from ₹ 122.59 crore (2.19%) as on march 2022 to ₹182.08 crore (2.87%) as on march 2023 in spite of challenging macro factors, whereas net NPA in absolute & percentage term remained zero at the end of the March-2023. Provision coverage ratio remained robust at 115.31%.

Adequate Capitalization Parameters:

Bank’s capital adequacy ratio reached the level of 16.74% as on 31-03-2023 against 15.59% as on 31-03-2022,well above level of minimum 9% stipulated by RBI. The growth is primarily backed by healthy growth of 26.83% in total capital observed for FY 2022-23.

New Initiative:

During the year bank has taken various initiative across business lines in order to improve performance delivery. Some of the important initiatives taken are as under:

  • Setup of Centralized Processing Centre for Cheque Collection at Rajkot.
  • Setup of 24x7 Call Centre for providing assistance in disputed transactions under digital channel.
  • Direct membership of RTGS/NEFT obtained.
  • Participation under liquidity corridor of RBI for managing overnight liquidity.
  • NDS Call Membership obtained.
Way Forward

We remain extremely focused on the needs of our customers and ready to extend our support to the customers through various channels.

Recovery of loans & maintaining gross NPA at below 2.5% will be the major priority for the bank during the current financial year.

Bank is focused on promoting digital channel as it not only saves cost to the bank but also ensures our alignment with the Government’s mission of Digital India. Bank has improved alternate channel share from 57% to 67% in FY 2022-23 & aiming to achieve 75% target in FY 2023-24. In the current financial year, Bank will continue to accelerate its digital agenda.

Bank will ensure to enroll maximum number of beneficiaries under social security schemes like Atal Pension Yojana (APY), Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) to pass on the benefits of government schemes to the targeted section of society.

I would like to express my sincere gratitude for the continued trust & patronage received from customers who have stood with the bank all through. I am more than hopeful that the robust performance achieved in FY23 will see greater heights in FY24.

Yours Sincerely,
(S Satyanarayana Rao)