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The Board of Directors have pleasure in presenting the 27th Annual Report, audited Balance Sheet, Profit & Loss Account for the year ended 31st March, 2010 and the Auditors' Report.

1. ESTABLISHMENT & OBJECTIVES

Nainital Almora Kshetriya Gramin Bank Sponsored by Bank of Baroda was established on 26th March, 1983. The area of operation of the Bank is Nainital, Almora, Bageshwar and Udham Singh Nagar districts. The main objective behind establishment of the Bank was to provide banking facilities in rural area and provide financial assistance particularly to small, marginal farmers, landless laborers and other weaker sections. Now for diversification and emerging needs of the area we are providing financial assistance to SME and services sector also.

Nainital Almora Kshetriya Gramin Bank comes under scheduled Bank included in 2nd schedule of Reserve Bank of India Act, 1934 and is authorised to do banking business defined in Section 6 in Banking Regulation Act. Like other banks customers' deposits are insured as per rules by Deposit Insurance & Credit Guarantee Corporation.

2. BRANCH NETWORK

Bank is functioning with its 58 branches and two extension counters. District wise branch position is as under : -

           
Our Area Offices were functioning at Almora and Haldwani for control and supervision of branches. In terms of recommendations of Thorat Committee appointed by Govt. of India, we have surrendered the license of Haldwani Area Office in December, 2009 and Area Office Almora is termed now as Regional Office as per new licensing policy of Reserve Bank of India. We have authorization to open 3 branches and have a plan to open 7 Branches up to 2012.

3. SHARE CAPITAL & RESERVES

The Bank's authorised capital is Rs. 5 Crores and the paid up capital is Rs. 1 crore contributed by Govt. of India, Bank of Baroda and Govt. of Uttarakhand. Our Bank was selected in 1995-96 for revamping in phase II and we have received an equity support of   Rs.10,12,92,800/- from Govt. of India, Bank of Baroda and Govt. of Uttarakhand in the proportion of 50:35:15 respectively. Our reserves have increased to Rs. 44.45 crores as at the end of the year.

4. DEPOSITS

During the year Bank remained active in developing savings tendency and banking habits among the rural community of its area of operation. During the year 2009-10 Bank showed growth rate of 17.49% by registering net growth of Rs.81.67 crores in deposits. Bank's total deposits touched the level of Rs.548.52 crores as on 31/03/2010 from Rs.466.85 crores as on 31/03/2009. In the same way Bank strengthened the clientele by opening maximum deposit accounts and opened 39585 new deposit accounts during the year. Out of these 23196 are new Savings Bank accounts. Total 6608 No-frill accounts were opened during the year in line with policy announced by Reserve Bank of India with a view to provide banking services to all.

a) Bank's deposit growth during the last five years remained as under –
                                 

  (Amount in lacs of Rs.)

b ) Details of classification of deposits, average deposit cost, per branch, per staff deposit for the last three years are as under – 

(Amount in lacs of Rs.)

Bank recorded growth of Rs.81.67 crores and deposits increased from Rs.466.85 crores as at March 2009 to Rs.548.52 crores as at March 2010.

Bank achieved 101.33% of its targets set for low cost deposits.

As part of our Silver Jubilee year celebrations, we introduced personal accidental insurance scheme w.e.f. 27th March, 2008 to cover accidental death risk of our all existing and future Savings Bank account holders for Rs.50,000/- per customer. This has been widely acclaimed by our account holders and the community at large. During the year 16 claims for Rs.7,50,000=00 were settled by the Insurance Company under this scheme. The scheme is extended for the year 20010-11 also.

5. BORROWINGS

During the reporting year, we repaid Rs.1280.78 lacs refinance availed during earlier years. To increase our resources and improving ALM mismatch the Bank availed refinance during the year from NABARD and sponsor bank as given in the following table.

(Amount in lacs of Rs.)

The Bank repaid all the due instalments of refinance in time.

6. CASH & BALANCES WITH BANKS

We have made our vigilant efforts to keep the cash balance at its minimum. Position of cash in hand and balance with banks for two years is given as under : -
                                                                                     (Amount in lacs of Rs.)

The position was being reviewed on daily basis and resulted in cost effectiveness of the Bank.

7. INVESTMENTS

In view of the directives of the Reserve Bank of India, Bank invested its surplus funds in Govt. securities despite financing to priority and Non – priority sectors. During the year under review, we made fresh investment of   Rs.4804.99 lacs in Govt. Securities for SLR and Rs.590.00 lacs under Non-SLR category. Out of investment made in earlier years, we got repayment of securities of Rs.1160.00 lacs on maturity and redemption.

As per Reserve Bank of India directives we have classified our Non-SLR investments in Mark-to- market category and accordingly we have made provision of Rs.1,42,64,650=00 for depreciation in the value of our Non-SLR investments.

We have received interest for our all other investments as per schedule. During the year average yield on investments was 8.92%. Maintaining adequate cash requirements keeping in view the cash credit facility to its customers, Bank have also been vigilant in maintaining minimum cash balance at the branches.

We have converted our entire SLR portfolio in Govt. securities and SLR requirement is met with as per Reserve Bank of India directives. 

8. LOANS AND ADVANCES OUTSTANDING

During the year Bank disbursed Rs.15998.59 lacs to 8112 beneficiaries. The outstanding amount towards 31786 borrowers as on 31.03.2010 was Rs.29361.52 lacs. Year wise amount of outstanding as well as outstanding under various categories as at the close of business on 31st March is as under.   

             (Amount in lacs of Rs.)

9.   IRAC NORMS

(a)   Asset Classification
As per the instructions of Reserve Bank of India assets were classified and provision was made for non-performing assets accordingly.
Category wise analysis of assets and provision made is as under –
                                                                                                            (Amount in lacs of Rs.)

10. Interest De – recognized

Income recognition process was done after classification of assets as per the instructions received from Reserve Bank of India regarding prudential norms. Position of reversal of interest for two years is given as under:

  (Amount in lacs of Rs.)

11. Provisions

            Keeping in view the provisioning norms we have made adequate provisions against NPAs. To reduce the net NPA to zero level in due course, we have made an additional provision of Rs.1,50,00,000=00 as on the end of the current financial year. Our cumulative provisions for Bad & Doubtful debts  as on 31.03.2010 are Rs. 9,56,44,337=93 (previous year Rs. 8,09,17,789=43). This includes provision Rs. 88,21,882=00 on all the standard advances. Provisioning position for three years is given below: -

             (Amount in lacs of Rs.)

12. NPA Management

As per the instructions of Reserve Bank of India we have classified our advances in Standard, Sub-standard, Doubtful and Loss category. During this year, advances of  Rs.1299.83 lacs (Previous year Rs. 1168.55 lacs) are categorized as NPA. Following is the position of NPA Management as on 31.03.2010. 

      (Amount in lacs of Rs.)

13. Loans Disbursed During the Year

During the year under review financial assistance was provided by the Bank to 8112 beneficiaries aggregating Rs.15998.59 lacs for various agricultural and non-farm sector activities under Annual Action Plan 2009-10. Scheme wise & sector wise details are as under: -

 (Amount in lacs of Rs.)

Main features of advances portfolio are as under: -

(1) During Current financial year Bank disbursed Rs.13712.69 lacs under Priority Sectors, which is 85.71% of total loan disbursement.

(2) Our interest on advances ranged from 7.00% P.A. to 13.50% P.A. with PLR of 12.50% P.A., according to nature of scheme, amount of loan, securities offered and borrowers’ stake in the Project / business.

(3) Kisan Credit Cards (KCC)

We had launched Kisan Credit Card Scheme by the name of Sahaj Seva Kisan Card in November 1998. Our Bank had disbursed fresh Rs.7884.85 lacs to 2293 borrowers during 2009-10. Presently 10418 farmers are benefited under KCC having outstanding amount of Rs.9219.39 lacs. The Bank have implemented Personal Accident Insurance Scheme for KCC holders from 2002-03 as per NABARD guidelines.

(4) Initiatives were taken by some of the branches for formation of Farmers Clubs. We have formed 14 farmers clubs during the year and total numbers have reached up to 173. We have constituted minimum one farmer club at each of our branch except Urban branch Haldwani.

(5)   Uttarakhand State offers tremendous scope for Tourism. As such, in tune with Government   

of Uttarakhand’s Tourism Policy, the Bank has very actively participated in SpecialTourism Scheme called Veer Chandra Singh Garhwali Scheme where 35  beneficiaries have been extended financial assistance  for Rs.198.54 lacs for Tourist Taxis, Motels, Low Cost Restaurants etc. for giving special thrust to Tourism sector. Total outstanding beneficiaries under this scheme are 166 with outstanding amount Rs.637.94 lacs.

(6)    Under KVIC/KVIB scheme our Bank provided Rs.68.62 lacs to 48 beneficiaries to           promote self employment.

(7)        We have made tie-up with M/s Maruti Udyog Ltd., M/s Tata Motors Ltd., M/s Hero Honda,

M/s International Tractors Ltd., M/s Premier Ltd. and M/s Force Motors Ltd. for selling of their products which will be beneficial to our Bank to increase advances portfolio as well as for the borrowers. 

(8) We have entered into Inter Bank Participation Certificate (IBPC) agreement with Bank of Baroda. We have interchanged our standard Priority Sector advances (agriculture) of Rs.19.20 crore with Non-priority Sector advance of Rs.19.20 crores of Bank of Baroda. Duration of IBPC is 180 days. IBPC has been approved by Reserve Bank of India. Bank of Baroda will provide interest @ 9.50% p.a. on the Priority Sector advances of our Bank whereas we will have to provide interest @ 8.00% p.a. on the Non-priority Sector advances of Bank of Baroda. Thus we shall have a margin of 1.50% interest. This will increase the income of our Bank. 

(9) We have financed two units of manufacturing nature for Rs. 23.25 lacs and these have been covered under guarantee of CGTMSE. Total guarantee cover available is 23.25 lacs. 

15. RECOVERY OF LOANS

Bank made Recovery Policy during the year 2004-05 and according to policy special efforts were made during harvesting and marketing of chief crops for improvement in recovery performance. Recovery efforts were made in the defaulting villages with the co-operation of Revenue authorities / employees. Our recovery percentage was 76.99% in June 2009. During current year 2009-10, we launched Special Recovery Campaigns at various centers with active assistance and co-operation of District/Revenue Authorities to bring down the level of Non Performing Loans including R.C. filed accounts. We have also resorted to the provisions of SARFAESI Act, 2002.

Recovery position as on 30th June 2009 is as under: -

             (Amount in lacs of Rs.)

1.   RISK FUND

Bank opted out from credit guarantee scheme of Deposit Insurance and Credit Guarantee Corporation w.e.f. 01.04.1995. Bank has not created any risk fund but has made adequate provision for non-performing assets.

2. RASHTRIYA KRISHI BIMA YOJNA (RKBY)

The scheme is implemented in our Bank since Rabi-2002 season as per State Government directives in this regard. We have made efforts to cover maximum farmers under Rashtriya Krishi Bima Yojna. We remitted insurance premium Rs. 34,20,761=00 for Kharif 2009, covering 3167 farmers and for Rabi 2010, Rs.14,26,602=00 for 2833 farmers. We have received agricultural insurance claim of Rs.33,25,585=57 for Paddy, Ragi and potato crops of 773 farmers for Kharif 2009 during this year and Rs.7,00,167=24 for wheat crop of 418 farmers for Rabi 2009.

3. WRITE – OFF OF LOANS

Bank initiated the process of writing-off Bad & Doubtful debts from the year 1997-98. Details of written off advances for two years are as under: -

                      (Amount in lacs of Rs.)

15. AGRICULTURE DEBT WAIVER & DEBT RELIEF SCHEME, 2008

          Under Agriculture Debt Waiver & Debt Relief Scheme, 2008, loan waiver is provided to 3124 farmers amounting Rs.6,48,26,363.00 and Debt Relief to 734 farmers amounting Rs.1,03,65,226.00. Under the scheme we have so far received reimbursement of Rs.6,48,26,000=00 from Govt. of India through NABARD. In 641 accounts of farmers covered under Debt Relief we have released Rs.87,26,476=00 up to 31.03.2010 after farmers deposited their share i.e. 75% of eligible amount (farmers falling under the category of Debt Relief) and the amount is claimed from Govt. of India through NABARD.

We have provided 1% interest subvention /incentive to those farmers who availed crop loan during this financial year and repaid the amount within one year. Our branches have credited Rs.6,16,631=00 in accounts of 2961 such farmers. This amount is yet to be claimed from Govt. of India.

16.  INCOME EARNED
The total earning of the Bank recorded at Rs.5239.49 lacs during 2009-10. Details of income under various heads are as under: -
        (Amount in lacs of Rs.)

All our branches are authorised to issue Demand Drafts on all Branches. Bank has provided locker facility at 3 branches. In addition to this we have made arrangements since 2004-05 for issuance of cheques on all ICICI branches.

  EXPENDITURE INCURRED

The total expenditure of Bank during 2008-09 was Rs.3552.21 lacs. Out of total expenditure, we have expended Rs. 2418.63 lacs as interest on deposits, borrowings etc. as per details given below: -

         (Amount in lacs of Rs.)

           
17.  FINANCIAL RATIOS

Different parameters indicating Bank's performance for two years are as under: -

                                 (Amount in lacs of Rs.)

18. TRANSFER PRICE MECHANISM

Transfer value system has been adopted for borrowing from / to branches and rate of interest earned / paid on this system is as under: -

19. ACHIEVEMENT UNDER DAP/MOU

Annual memorandum of understanding between Bank and sponsor bank was executed for the year 2009-10. Bank's performance under various commercial parameters against committed targets is as under: - 
          

 (Amount in lacs of Rs.)

* Bank achieved 17.49% growth in deposits, 21.28% in low cost deposits and showed a net growth of Rs.81.67 crores in deposits during the year under review.

* Bank earned a Profit of Rs.1026.40 lacs registering increase of Rs.151.78 lacs(17.35%) in Bank's profits despite lower income in our investments and advances particularly in KCC and SCC due to lowering down interest rates. The profit is transferred to Profit & Loss a/c in Balance Sheet.

* Bank availed total refinance of Rs.2368.59 lacs to increase its resources for lending and improve Asset Liability mismatch.

* The Capital and Reserves of the Bank increased from Rs. 4847.62 lacs as on 31/03/2009 to Rs.5557.51 lacs as on 31/03/2010 reflecting an increase of Rs.709.89 lacs i.e 14.64% during the financial year 2009-10. We have transferred Rs.316.51 lacs from current year profit for Income tax liability as per amended provisions of Income tax rules from A.Y. 2007-08.

* The capital adequacy of the Bank as at 31/03/2010 is 16.81% as against RBI norm of 9% for
PSU Banks.

20. SELF HELP GROUP

In accordance with the guidelines received from National Bank for Agriculture and Rural Development our branches have actively come out for formation of Self Help Groups. We formed 410 and credit linked 168 SHGs during the year. The total outstanding SHGs formed by our Bank are 2069 and out of which total credit linked SHGs are 893 upto 31.03.2010.

21. SWAROJGAR CREDIT CARD (SCC)

The Bank is actively participating in the recently announced innovative scheme of Swarojgar Credit Card of Government of India, being implemented through NABARD. The Bank provided financial help to 297 borrowers for Rs.137.90 lacs under this scheme during the year 2009-10. Total Credit Cards at the close of business are 1575 and amount outstanding in these cards is Rs.511.10 lacs.

22.  GRAMIN BANK GENERAL CREDIT CARD
           In order to provide hassle free credit to weaker section of the society in rural and semi urban area based on assessment of income and cash flow without insisting on security, purpose and end use of the credit, our Bank launched Gramin Bank General Credit Card Scheme. During this financial year we issued 20 credit cards with amount Rs.4.60 lacs.

23. SILVER MAHILA CREDIT CARD
There are peculiarities in rural economy of Uttarakhand. One of them is large number migration of male population to urban areas outside the state. The farming is done by women who do not own title of the land. As a result bank credit was not made available to them. We have formulated a scheme named Mahila Credit Card for lending to women cultivators for production purpose. We have provided 101 Mahila Credit Cards for Rs.23.80 lacs to women beneficiaries during this financial year.

24.  IMPLEMENTATION OF DAS COMMITTEE RECOMMENDATIONS
    On the recommendations of Govt. of Uttarakhand, Reserve Bank of India constituted a working group under the Chairmanship of Shri V.S.Das, Executive Director of Reserve Bank of India, Central Office,Mumbai for improvement of banking services in Uttarakhand. The recommendations of the working group were adopted by the Board of Directors of our Bank in their meeting held on 1st November, 2006. Following steps are initiated by the Bank for implementation of the recommendations of working group –
i) Bank adopted Business Facilitator model and have engaged business facilitators in two branches.
ii) There are peculiarities in rural economy of Uttarakhand. One of them is large number migration of male population to urban areas outside the state. The farming is done by women who do not own land. As a result bank credit was not made available to them. We have formulated a scheme named Mahila Credit Card for lending to women cultivators of hilly region for production purpose.
iii) Bank has achieved 100% Financial Inclusion in the service areas of our branches.
iv) Started opening of ‘No-frill’ accounts from 2007-08 and opened 40626 ‘No-frill’ and zero balance accounts so far.
v) We have made arrangements for issuance of Bankers cheques of ICICI Bank to provide services to our customers.
vi) We are selling insurance products of National Insurance Co., Life Insurance Corporation of India and Bajaj Allianz Insurance Co. Ltd. on referral basis.

25.  INTEREST RATE
As per the liberalized policy of Reserve Bank of India we fixed interest rates for deposits and advances at our end. The rates of interest on deposits and advances prevailing at the end of the year are as under: -

           For senior citizens, 0.50% additional interest is being provided for deposits of one year and above.

Special interest rates of 7.00% up to Rs.3,00,000/- for crop production, 11.00% to Medical Practitioners, 9% to SHGs, 10% to Swarojgar Credit Card/Mahila Credit Card and General Credit Card, 11.50% for transport sector and 11.50% for Personal Car/Two Wheeler were also quoted.

We have fixed lower rates of interest on KCC as per Govt. of India directives. We propose for further revision of interest rates on deposits and advances as per market scenario, cost of funds and required margin.

26.  NON FUND BUSINESS

Bank has provided, at present, locker facility in its 3 branches. All our Bank’s branches are authorised to issue Demand Drafts on all our branches whereas Bank Guarantee facility is made available to all our valued customers at all our Branches.

With a view to retain existing customers and get new customers, we made arrangements for issuance of cheques on all branches of ICICI Bank Ltd. as otherwise those customers were not maintaining accounts with us due to non issuance of Demand Drafts on outstation branches in India. This also helped us to earn commission.

Bank has agreement with National Insurance Co., for General insurance on referral basis. Bank earned commission of Rs.7.79 lacs during the year which added to our income.

Bank has entered into agreement with Life Insurance Corporation of India during the year for sale of Life Insurance Policies on referral basis. We referred the cases and earned commission of Rs.6.57 lacs through sale of LIC policies.

Bank also entered into agreement with Bajaj Allianz Ltd. for a special scheme named Tatkal Bima Yojna. An amount of Rs. 115.29 lacs was collected as premium under this scheme and earned commission of Rs. 12.53 lacs during this year.

Total income other than interest earned during the year was Rs.197.44 lacs as against Rs.155.84 lacs during 2008-09. We are endeavoring to augment Non – Interest earnings through fee based and third party product business.

27. AUDIT & INSPECTION

During the year, internal inspection cell inspected the 58 branches. Good progress was also made in the rectification of irregularities pointed out in the inspection reports.

NABARD had inspected Bank’s Head Office and 14 Branches of the Bank with reference to the financial position as on 31.03.09. During the year compliance was completed and advised to NABARD and our Sponsor Bank Bank of Baroda. NABARD has awarded 81.20 marks and rated our Bank as “GOOD”.

The accounts of the Bank are audited by Chartered Accountants M/s Sharda & Bahuguna, Haldwani(Nainital), M/s Kapil Goel & Associates, Ramnagar(Nainital), M/s SC Agrawal & Associates, Kashipur(Udham Singh Nagar) and M/s Vimal & Associates, Chartered Accountants, Kashipur. The statutory central auditors audited Head Office and 15 branches and statutory branch auditors audited 43 branches of the Bank. The auditors’ report is enclosed.

28. HUMAN RESOURCES AND TRAINING

The Chairman and General Manager are on deputation from the sponsor bank. The details of other officers / employees as on 31.03.2009 is given here under:-

(a) During the year 4 officers were promoted from MMG/S-II to MMG/S-III, 5 Clerk-cum-cashiers were promoted to Officer JMG/S-I cadre and 2 messengers were promoted to clerical cadre.
(b) We conducted recruitment test for Officers and Clerk-cum-cashiers during March, 2010 and recruitment exercise will be completed by the end of June, 2010 to fill up the shortfall of manpower in the Bank.

(c) During the year 45 officers were deputed for training establishments like Bankers Institute for Rural Development, Lucknow, Bank of Baroda Staff College, Ahmedabad, and Reserve Bank of India, Dehradun/Lucknow.

(d) Considering the importance of training and in view of non-availability of any training institution for clerical and messenger cadre employees, we have started in house training programmes from previous year for our entire human resources. As such we organized 2 in house training programmes wherein a total of 35 officers were trained.

(e) During the year vigilance officer was deputed by the sponsor bank in our Bank, 01 officer and 2 Clerk-cum-cashiers resigned from Bank’s service. One officer passed away and one messenger terminated from Bank’s service during this year.

29. COMPUTERISATION

The Bank completed the process of computerization in all 58 branches by the end of this year. As per Govt. of India directions now we are planning for CBS and making arrangement for CBS of 18 branches during 2009-10 in 1st phase.

30. USE OF INFORMATION & COMMUNICATION TECHNOLOGY (ICT)

            In order to increase Bank’s reach and provide banking facilities to the villagers of remote areas of the hills, the Bank has engaged M/s A-little World Pvt. Ltd. as Business Correspondents. They will be using Mobile phone based technology and issue Smart Cards to open and operate Savings Bank accounts which will biometric identification. Large number of villagers will be able to deposit and withdraw money from their accounts to begin with. In due course more add-on facilities will be introduced.

Two remote centers have been identified viz. Dholigaon village in Okhalkanda block in Nainital district and Naini village in Dholadevi block in Almora district. The Customers Service Points (CSPs) will  be opened at these villages which will cater to 10-15 surrounding villages.

31. INDUSTRIAL RELATIONS

The Bank continued to have cordial industrial relations during the year supported by the business results achieved during the year.

32. VIGILANCE

The Bank assigns high priority to vigilance with a view to render faultless customer service to both its depositors and borrowers. The vigilance department at Head Office is under the direct control of the Chairman and being looked after by a Senior Manager on deputation from sponsor bank.

34. RIGHT TO INFORMATION ACT – 2005
Government of India enacted the Right to Information Act 2005 which has come into force in October, 2005. The Act provides for right to every citizen to secure access to information under the control of public authorities, consistent with public interest. It aims to promote openness, transparency and accountability in administration and in relation to matter connected therewith or incidental thereto. General Manager of the Bank is designated as the Public Information Officer with the Chairman as the Appellate Authority under the Act. Various information sought under the Act are being provided within the prescribed time frame.

Bank launched its website “nakgb.com” during this year with a view to provide maximum information about the Bank and its services to general public.

31.  USE OF HINDI

In accordance with the official language policy of the Govt. of India, the Bank is making maximum use of Hindi in its day to day working and making efforts to do all its work in Hindi.

32. RECONCILIATION

Reconciliation of Banker's Accounts and Head Office Account is completed upto 31.03.2010. The unmatched entries are being vigorously followed up for being squared off.

33. REWARD  SCHEME
Reward Scheme has been introduced for better working results and healthy competition among the branches since 1997. The scheme is modified from time to time to include more areas of development to be reviewed for the progress and to review the progress on quarterly basis to have consistent growth.

34. STATUTORY  PROVISIONS

Bank maintained the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) as per prescribed standards of Reserve Bank of India. During the calendar year 2009 six meetings of Board of Directors were held as per Statutory Requirements.

35.  BANK MANAGEMENT

During the year Shri V. K. Bhatia, Shri Subroto Mukharjee and Dr. Pankaj Kumar Pandey replaced Shri V. S. Narang, Shri A. K. Sodhi and Shri C. S. Napalchyal as Directors of the Bank. Dr. Pankaj Kumar Pandey and Shri M. S. Kundra are further replaced by Shri D. S. Garbyal and Dr. Pankaj Kumar Pandey.

During the period Shri G. K. Dixit was appointed as General Manager of the Bank in place of outgoing General Manager Shri D. K. Sawhney.

The Bank expresses its gratefulness to the outgoing Directors and the General Manager for their valuable contributions.

36.  WORKING RESULTS

The total earning of the Bank recorded at Rs.5239.49 lacs (net of provisions) made during 2009-10. The total expenses are Rs.3920.44 lacs. Total provisions provided for NPA and investments are Rs.292.65. During the year 2009-10 Bank earned Net profit of Rs.1026.40 lacs before tax. All the branches of the bank are continued to be profit making units during 2009-10.

During the year Bank recorded a growth of 16.15% in total business i.e. from Rs. 725.06 crores as on 31/03/2009 to Rs.842.13 crores as on 31/03/2010 i.e. increase of Rs.117.07 crores. Per branch business increased from Rs. 1250.11 lacs to Rs.1451.95 lacs and per employee business (including sub staff) increased from Rs.309.86 lacs to Rs.367.74 lacs during the year.

Summary of performance is as under:-
                                                                                                   (Amount in lacs of Rs.)

37.  ACKNOWLEDGEMENT

The Board of Directors express their deep gratitude to the Govt. of India, Govt. of Uttarakhand, Reserve Bank of India, National Bank for Agriculture & Rural Development, Bank of Baroda, District Administration, DRDA and all other Govt. agencies for their co-operation and valuable guidance.

The Board also thanks all the customers of the Bank for giving it an opportunity to serve them.

The Board also acknowledges the positive participation of the members of staff at all levels who have worked hard to build up the image of the Bank and take it to new heights of achievement, without which the Bank could not have achieved the present position.

      For and on behalf of the Board of Directors.

(R.  K. GUPTA)      

CHAIRMAN

Place: Haldwani(Nainital) 
Date: 22nd April, 2010