Chairman’s Desk


Dear Shareholders,

I welcome you all on behalf of the Board of Directors of the bank to this 52nd Annual General Meeting of your bank and to present Annual Report for the financial year 2016 -17.

KEY PERFORMANCE INDICATORS – The Bank is under strict directions issued under Section – 35A of Banking Regulation Act, 1949 (AACS) since 24th July, 2015.

As such, the performance of the Bank during the year 2015-16 & 2016-17 is as follows:-

  Indicators of Progress                                                                      (Rs. in Crores)

Particulars 2015-16 2016-17
Share Capital 25.14 23.99
Reserves 44.77 45.68
Deposits 477.69 462.17
Advances 219.87 156.58
Investment in Government Securities 166.37 175.70
Operating Profit / Loss (-) 1.35 (-) 9.00
Balance in Profit & Loss Account brought forward from previous year (-) 55.98 (-) 64.98
Gross NPAs 24.55 27.97
Net NPAs 8.39 10.61
Long Term Deposits 0.03 0.03
Credit Deposit Ratio 46.03 33.88

The financial position as on 31.03.2015 was sound enough to run the bank profitably. But in spite of this growth the Reserve Bank of India in a sudden move imposed directives u/s 35A of Banking Regulation Act, 1949 on 24.07.2015 at close of the business prohibiting us from undertaking the normal banking business. Our Bank had been in constant touch with the RBI and had informed them of the road map ending with 31st March 2016 by which date we were confident of raising almost Rs.30.00 to Rs.35.00 crores through Head office development project and sale of other non banking assets as per their own directions as against minimum requirement of Rs.22.00 crores. The sudden directives imposing embargo on normal Banking operations have prevented us from implementing the road map

assiduously prepared and submitted by us to the RBI. In the circumstances and on advice of legal experts and In order to safeguard our legal rights the Bank filed a writ petition in the Bombay High Court, Goa Bench. We succeeded in getting favorable interim order from high Court which was later modified by the High Court after hearing the RBI. We have explained to the Court in detail our position and hope to get further favorable directions from High Court at the earliest possible. Meanwhile we are also in correspondence with RBI to find an early solution to the imbroglio. The public and share holders however continue to have confidence and faith in our bank as they are aware of the bank’s good business performance over the years in spite of adverse economic environment and financial climate.



Share capital of the bank as on 31.03.2017 is Rs.23.99 crores.


The deposits of the bank as on 31.03.2017 is Rs.462.17 crores. The Insurance Premium of Deposit Insurance & Credit Guarantee Corporation has been paid by the Bank upto September, 2017.


At the end of the year the Gross NPAs stood at Rs.27.97 crores. During the year the Bank recovered Rs.5.44 crores. The recoveries would have been much higher, but for pendency of cases in various Courts awaiting final decisions. We are hopeful of early disposal of these cases and post healthy recoveries in the NPAs accounts.

We have approached all platforms from RBI to the State Government and have tried to find ways to resolve this crisis. Several meetings were held with RBI to find out the best solution. The RBI has adopted stern measures in respect of the cooperative Banks in the Country. As of date many Banks are under Section 35A directives of RBI. Banking Licences of a few Banks have been cancelled. Some are on the watchlist of RBI. Few more are being advised to merge with stronger Banks. The directives have shaken the Co-operative Banking sector in the Country. Govt. of India has been pumping funds in Nationalized Banks to cover their NPA losses and to recapitalize them. Our sector has no such cover or support. We are victims of a biased and discriminatory framework.

As such we have no option but to explore the possibilities of merger or convert ourselves into a Co-operative Credit Society which can at a later stage spring back as a Bank or merge with a Bank depending upon financial health of the Bank. Last year you were kind enough to pass a resolution authorising us to explore both the possibilities. We have in the meanwhile talked to a few Co-operative Banks about merger. Their response is awaited.

We have also requested the Reserve Bank of India to guide us in this matter. In case we have to exercise the option of becoming a Credit Co-operative Society suitable changes will have to be made in the Bye-Laws. It is clear and explicit that our next status has to be achieved in the shortest possible time. I therefore seek your co-operation.


I thank the esteemed depositors, customers and shareholders of the Bank for their continued trust, confidence, encouragement and support for the Bank in spite of the prevailing uncertain atmosphere.

I alongwith all my colleagues on the Board thank the Officials of Reserve Bank of India, Mumbai, Reserve Bank of India, Urban Banks Department, Goa Regional Office, Central Registrar of Co-op. Societies, Ministry of Agriculture & Co-operation, Govt. of India, New Delhi, Registrar of Co-op. Societies, Government of Goa and other regulatory authorities for their continuous support, co-operation and guidance.

I acknowledge and thank the contribution made by the Management of the Goa State Co-op. Bank Limited, HDFC Bank, Legal Advisor – Adv. Mohanlal P. Mulgaonkar, Adv. Jayant P. Mulgaonkar and Senior Legal Counsel and present Addl Solicitor General of India – Adv. Atmaram N. Nadkarni and M/s. G. R. Shanbhag & Associates – Statutory Auditor/ Chartered Accountants and Shri Ashish V. Verlekar – Tax Consultant/Chartered Accountant, M/s. Malhar Shenoy & Company – Internal Auditor and Shri M. N. Bhartiya – Arbitrator, Camp Court, Mapusa, Goa and Nirlab Technologies, Mega Trend as well as Infrasoft Tech India Limited.

The Board joins me in expressing our deep appreciation and gratitude to all Shareholders, Depositors, valued Customers, all our Valuators, Architects, Engineers, Pigmy Deposit Collectors and Well Wishers for their continued support and cooperation and for the faith & confidence they have reposed in us.

I, alongwith my other colleagues on Board place on record our appreciation of the services rendered by the employees and look forward to their continuous co-operation and more active involvement in the bank’s efforts to scale new heights in the business and customer service of the Bank.





P l a c e : M a p u s a , G o a .                                
Date: 22nd August, 2017.