It gives me immense pleasure in presenting the 5th Annual Report of Himachal Pradesh Gramin Bank for the year ended 31st March, 2017.  The Board of Directors on 5th May, 2017 met to adopt the financial results of the Bank for the year ended 31.03.2017.

 “None of us is as smart as all of us.” – Ken Blanchard

The time around end and beginning of a Financial Year offers us a valuable opportunity for reflection, introspection and resolution. If, we look back a year around, the last financial year has been full of events that has impacted our bank and launching of “HPGB Vision 2019 Document” & “Demonetization” being the major one. “HPGB Vision 2019” program held on 18.09.2016 showed unity & solidarity of HPGB staff members in taking the Bank to newer heights whereas, “Process of Demonetization” tested capabilities, skills and talent of staff in performing to its best in difficult times.


From beginning of Financial Year 2016-17, Govt. of India has been eloquent about Financial Inclusion & Digital India and recent momentum toward cashless economy gives our bank emerging challenges. So far, in field of Financial Inclusion, our bank has performed with excellence. As on 31.03.2017, our bank has distributed Rupay Cards in 100% of PMJDY accounts. Similarly 100% KCC account holders have been distributed with Rupay Cards.


Bank has opened 26 new branches in FY 2016-17, most of which are in unbanked rural areas of Himachal Pradesh. Bank, as on 31.03.2017, has 263 branches across the state and all of which are CBS. To reach more unbanked areas Bank is following Bank Mitra and Bank Sakhi models. 95 micro-ATMs have been distributed among 108 Business Correspondents, who in the month of March 2017 have carried out transactions amounting to Rs.3.34 crore. Acquiring of 2000 PoS machines and starting of “Mobile Banking” service is on cards with our Sponsor Bank.


We have started well and the initial steps on this journey have been small but sure. Many of us seem to have understood that our goal of reaching every village and every door of Himachal Pradesh is enormous, but achievable, if done in a planned manner and with full conviction & perseverance.

I also take this opportunity to share with you Business Performance of Himachal Pradesh Gramin Bank during FY 2016-17:

(Amt. in Rs. crores)

Sr.No. Parameter 31-Mar-16 31-Mar-17 Gap %Growth
(Audited) (Audited)
1 Deposits 3318.56 4056.95 738.39 22.25%
2 Term Deposits 2128.75 2423.71 294.96 13.86%
3 CASA 1189.81 1633.24 443.43 37.27%
4 CASA% 35.85% 40.26%    
5 Advances* 1217.52 1383.28 165.76 13.61%
6 CD Ratio% 36.69% 34.10% -2.59%  
7 Total Business 4536.08 5440.23 904.15 19.93%
9 NPA 73.66 87.36 13.70 18.60%
10 Gross NPA% 6.05% 6.32% 0.27%  
11 Net NPA 46.53 51.64 5.11 10.98%
12 Net NPA% 3.91% 3.83% -0.08%  
13 No. of Branches 237 263 26.00 10.97%
14 No. of Employees 757 717 -40.00 -5.28%
15 Business per Branch 19.14 20.69 1.55 8.08%
16 Business per Employee 5.99 7.59 1.60 26.62%
17 Gross Profit 2.39 6.36 3.97 166.11%
*These figures are inclusive of IBPC issued to the tune of Rs.252 Crore as on 31.03.2016 and Rs.170 Crore as on 31.03.2017.


  1.  In addition to the above, it is relevant to mention here that NPA provision of Rs.27.12 crore as on 31.03.2016, has increased to Rs.35.72 crore as on 31.03.2017. Similarly Gratuity Fund Investment has increased from Rs.30.68 crore as on 31.03.2016 to Rs.32.18 crore as on 31.03.2017.
  2.  In the State of Himachal Pradesh, share of our total Business has increased from 3.69% as on 31.03.2014 to 3.88% as on 31.03.2017. Whereas performance share of our Bank under PMJDY, PMSBY and PMJJBY is 17.30%, 13.35% and 8.72% respectively.
  3.  Claims under Social Security Schemes.
Date – 31.03.2017 (Amt. in Rs. Lacs)
Type of Claims Premium Paid to Insurance Companies Total Claims lodged Settled Claims Pending claims Rejected Claims Amount received by claimants (Rs.) in lac Amount yet to be received by claimants
PMSBY 40.51 61 28 20 13 54.80 40.00
PMJJBY 134.71 60 49 7 4 98.00 14.00
Rupay Card Claims  0 26 17 4 5 17.00 4.00
Total 175.22 147 94 31 22 169.80 58.00


Amount of claims settled plus to be settled is much higher than the amount of premium paid to insurance companies. Performance of our bank w.r.t. settlement of claims is the Best in Himachal Pradesh. Success of these schemes is the result of Pro-active attitude of our Team. Also, it is my pleasure to share with you that, our nominations in Micro Insurance and Claim Settlement have been conferred following awards during the 46th Skoch Summit on 16th December 2016 at Constitution Club of India, New Delhi:

  1.  I also feel honor to share with you that our Nomination of “Micro ATMs to Business Correspondents” has been adjudged amongst the winner for the “FINNOVITI 2017”. Our nominations have been conferred Finnoviti Award during the Finnoviti 2017 event on 21.01.2017 at MMRDA Ground, Mumbai.
  2.  In Govt. of India’s benign initiative of pushing cashless transactions way forward, “Lucky Grahak Yojna”, 350 customers of our bank have been declared winners and Rs.4.06 Lakh has been credited to their accounts.
  3.  As on 31st March 2017, 23 Branches exceeded the Total Business figure of Rs.30 crore and 14 Branches exceeded the Total Business figure of Rs.10 crore. A total of 37 branches have been approved for up-gradation of category in 2nd Board of Directors’ Meeting of Calendar Year 2017 dated 05-May-2017. This will bring promotion opportunities to staff members and more jobs for people of Himachal Pradesh.
  4.  IBPS has declared results of CWE-RRB V, 288 candidates (including Sr. Manager: 2, Manager – Agriculture: 10, Manager – Chartered Accountant: 2, Manager – General Banking: 19, Assistant Manager: 85, Office Assistant – Multipurpose: 170) have been called for pre-joining formalities. Soon there will be no shortage of staff in the Bank.
  5.  Transparency in operations with accountability and recognition of performers has been the buzz word directly reflecting on their posting. Timely promotions and elevation to new scale will surely encourage the staff to put something extra.

Vision HPGB 2019 document:

After discussion with Field Functionaries and Senior Colleagues, a document with respect to achieving ambitious goal of Rs.10,000 Crores business up to 31.03.2019 has been launched on 18.09.2016. I am confident that the momentum set on motion, will accelerate in the Financial Year 2017-18 to take the Bank to new heights keeping in mind the Vision 2019 Document.

Concerns: We should also keep in mind that following are the major concerns for our bank:

i) Low CD Ratio: During the period of Demonetization, there has been spurt in deposits & recovery thereby reducing the CD Ratio of the Bank to 34.10% against the national goal of 60%. In the forthcoming financial year, our focus will be on increasing credit portfolio of the Bank. Bank will put stress on Investment Credit in Agriculture, development of High Density Apple Orchards in apple belts of HP and financing MSMEs. This will increase interest income of the Bank thereby improving CRAR as well as credit portfolio of the Bank.

ii) NPA: Gross NPA of the bank as on 31.03.2017 is 6.32% as compared to 6.05% on 31.03.2016, whereas, the Net NPA of the Bank has come down to 3.83% on 31.03.2017 from 3.91% as on 31.03.2016. There has been reduction in Net NPA of the bank due to increased provisioning of  in financial year 2016-17, but Gross NPA level is still on higher side which is cause of concern for the Bank as NPA level has direct impact on profitability of the Bank. In the current financial year our efforts will be focused on up-gradation of NPA accounts and regularization of irregular accounts.

iii) CASA: Bank has shown outstanding YoY growth of 37.27% in CASA Deposits. Adding more CASA deposits to the Balance Sheet has direct positive impact on profitability of Bank. In FY 2017-18, focus of the Bank will continue on opening of salary accounts, current accounts of small businesses, building relationships with new customers, providing good customer service and inculcating the habit of saving in small households which will surely increase CASA% of deposits of our Bank.

Alone we can do so little; together we can do so much. – Helen Keller

There is no other source of greater inspiration and motivation than to join hands together to reach newer heights every day. I thank all our Directors for their continued faith in our strength and capabilities, customers for their valuable support and trust and our employees for their tireless efforts towards achieving our goals.


With warm regards,