3 - COMPANY PROFILE

Pragathi Gramin Bank

Head office: Bellary
Sponsored by: Canara Bank

INCEPTION:
The year 2005-06 was a unique year for the regional rural banks (RRB’s) in
the country, the year witnessed amalgamation of RRB’s of the sponsor bank in the
state. As many as 89 RRB’s were amalgamated into 26 RRB’s during 2005-06.
Thus the total number of RRB’s was reduced to 133 from 196. Now it has been
reduced to 96 from 196.

Pragathi Gramin bank is one among the above 29 RRB’s which is sponsored by
Canara bank a leading nationalized bank in the country and came into existence on
12-09-2005 with the amalgamation of following 4 erstwhile RRB’s sponsored by
Canara bank vide Govt. notification NO. S.O.1269E dated 12-09-2005 published
in extraordinary Gazette of India part II section 3 Sub section (ii) and the bank is
now having 354 branches in 8 districts.
♫ Tungabhadra Gramin Bank has a business of Rs. 1476.95 Crores
constituting a share of 54.69Percent in the total business of Pragathi
Gramin Bank.
♫ Chitradurga Gramin Bank had a business of Rs. 577.40 Crores constituting
a share of 21.38.
Ranking among RRB’S at national level as at 31-03-2007.
 3rd rank, biggest RRB in country in terms of owned funds and network.
 3rd rank, biggest RRB in the country in terms of net profit.
 Kolar Gramin Bank had a business of Rs. 446.13 Crores constituting a share
of 16.52Percent.
 Sahayadri Gramin Bank had a business of Rs. 200.06 Crores constituting a
share of 7.14.

NATURE/TYPE OF BANK:
Pragathi Gramin Bank (PGB) is one of the top performing regional rural
banks among the 92 RRB’s operating in the country, by virtue of its development
oriented approach towards welfare of the people and prosperity of the command
area served, the bank is recognized as a distinctly performing RRB.

Productivity recorded per branch business Rs. 14.06 Crores and per staff business
Rs. 2.58 Crores.

Villages freed from the clutches of money lenders by providing financial

assistance to all eligible families in the villages.
To facilitate the farmers community for storage of commodities for
remunerative price.
Pledge/WHR (ware house Receipt) loan disbursement to farmers against
pledge of commodities to avoid distress.
Banks has laid down clear cut policy guidelines to branches for
undertaking extension activities periodically so as to strengthen the rapport
and relationship with the customers.
MISSION:
We strive to deliver our financial products and services in the way our
customers expect: with exemplary service, maximum convenience and at
competitive rates. This is reflected in our mission statement; to set the standard in
helping our customers manage their financial future.

VISION:
With committed human assets, a highly satisfied customer base, best of
information technology, and continuous innovation, the bank looks to the future a
truly global approach.

CORPORATE STATEMENT:
The corporate statement of the bank is to be an entrepreneurial integrated
financial service institution where innovation and transformation are a part of life.
 BOARD OF DIRECTORS
Sl. Name & Address of the Director Position Nominee Date of
No. of Nominati
on
1 Chairma CANARA 20.06.201
Sri R Ravikumar
n BANK 5
Pragathi Krishna Gramin Bank

Head Office, Ballari - 583103

2 Director CANARA 28.08.201
Sri K S Rajagopal,
BANK 3
Asst. General Manager,
RRB Division, RRB and Lead Bank
Wing,
Canara Bank, Head Office,112, J.C.
Road,BENGALURU - 560001
3 Director CANARA 28.08.201
Sri . K P Shetty,
BANK 3
Asst. General Manager,
Canara Bank, Circle Office,
IMA House, B N Nagar,
HUBBALLI - 580020
4 Director NABARD 06.05.201
Sri. T Ramesh, 
5
Deputy General Manager,
NABARD
Karnataka Regional Office,
NABARD Towers,No. 46, K.G.Road, 
 BENGALURU - 560002
5 Director RESERV 04.09.201
Sri. N C Narasimhacharya,
E BANK 5
Deputy General Manager,
OF
Reserve Bank of India 
INDIA
Dept. of Non-Banking Supervision
Nrupathunga Road, 
BENGALURU - 560001
6 Director GOVT. 05.01.201
Sri. Prakash Y K
OF 6
Special Officer (Banking) & Joint
KARNAT
Secretary,
AKA
Finance Department
Karnataka Government Secretariat, M S
Building,5th Stage, BENGALURU -
560001
7 Director GOVT. 16.12.201
Sri. S S Nakul, I.A.S.,
OF 5
Chief Executive Officer,
KARNAT
Zilla Panchayath, BALLARI - 583101
AKA
8 Director GOVT.
Sri. Raghavenddhiraa
OF 03.09.201
333, 3rd Block,The Embassy,
INDIA 3
Ali Akbar Road, BENGALURU
9 Director GOVT.
Sri. Veerupakshappa M. Gaddad
OF 05.11.201
H. No. 199, G.D.A. 1st Block,
INDIA 3
Veerendra Patil Nagar, Sedum Road
KALBURGI - 585105
ORGANIZATIONAL CHART

Board of Directors

General Manager

Deputy Manager

Branch Manager

Officers

Clerks

Subordinates

Attenders
PROFIT:
The profit before tax is Rs.71.14 Crores as against Rs. 66.47 Crores
recorded during 2006-07. The profit after tax amounted to Rs. 47.77 Crores as
against Rs. 55.21 Crores recorded during the previous year.

PERFORMANCE HIGHLIGHTS OF THE YEAR 2014-2015.

1. Out of 25 performance parameters prescribed under MOU by sponsor Bank
accomplished 18 parameters.
2. Capital adequacy ratio of the bank stood at 15.57Percent as at 31.03.2015.
3. Total business of the bank stood at Rs. 4978 Crores against the target of Rs.
4850.00 Cores.
4. Profit before tax registered is Rs.71.14 Crores against target of Rs. 70,000
Crores.
5. Our clientele base crossed 25 lakh marks.
6. Productivity recorded per branch business Rs. 14.06 Crores and per staff
business Rs. 2.58 Crores.
7. Bellary Gandhinagar branch and Hospet dam road branch surpassed Rs. 100
Crores mark under total business.
8. Gross NPA level 2.79Percent; the net NPA level stood at 1.26Percent. The
Hon’ble union finance minister had given a call to RRB’s to bring down the
net NPA level to 1.30Percent by 2014, which is achieved by us 2 years in
advance.
9. Percentage of priority sector advanced to total advances stood at
81.06Percent.
10.Bank’s achievements under annual action plan (credit) target stood at
128.65Percent.
11.The CD ratio of the bank stood at 95.31Percent as at 31st March, 2015.
12.First ever ATM launched by the bank on 07-02-2014 at Gangavathi in
Koppal District.
13.For the first time, our bank has financed under consortium arrangement with
sponsor bank.
14.New farmers financed during the year amounted to Rs. 61,069.
15.Over 54,000 new farmers are issued Kisan Credit Cards during the year
against the MOU target of 35,000.
16.3 new branches and 1 extension counter opened during the year.
17.The average number of fresh KCC issued per branch stood at 152 as against
the target of 150 per branch set by the government.
18.Bank disbursed loans/advances of Rs. 1781 Crores during the year against
the target of Rs. 1775 Crores.
19.391 villages freed from the clutches of money by providing financial
assistance to all eligible families in the village.
20.453 new farmers clubs launched during the year met Hon’ble finance
Ministers directive of 1 club per branch. The total number of farmer clubs
promoted by the bank crossed a land mark by forming 1045 clubs.
21.To facilitate the farmers community for storage of commodities for
remunerative price. Bank has financed construction of 241 new agricultural
rural godowns during the year. The total number of rural godowns financed
by the bank went up to 717 highest any RRB/ bank in the country.
22.Pledge/WHR (ware house receipt) loan disbursement to farmers against
pledge of commodities to avoid distress sale went up to Rs. 184 Crores
farmers richly benefited under this scheme. The rate benefit that accrued/
 realized during the year is approximately 33Percent over the rate that
prevailed during pre pledge period.
23.During the year, 7911 new Self Help Groups were formed and linked to the
bank with this the total number of SHG’s with the bank has reached 46247
comprising of 6,47,458 members.
24.14,375 SHG’s were provided credit linkage during the financial year (Target
14,000). The total business under SHG’s crossed Rs. 100 Crores marks.
25.100Percent financial inclusion villages stepped up from just 628 villages
(31-03-2014) to 3643 villages. Thus, all families in these villages have bank
accounts.
26.Crossed one MILLICN mark under total number of families covered under
financial inclusion.
27.No trial accounts (zero balance savings bank accounts for poor families)
opened by the bank stood at 387746.
28.Lok Adalath forum was efficiency utilized by the bank to expedite pre
litigation and pending court cases for recovery of dues from the defaulters.
The Lok Adalath at two places was graced by Hon’ble high court judges.
29.The bank has 26 nil NPA branches compared to16 nil NPA branches at 31-
03-2015.
30.Training to staff members stepped up total number of staff members trained
during the year 1241.
31.To improve the ambience, face lift given to 37 branches and 1 regional
office. 4 regional offices shifted to new spacious premises, with elegant
look.
 Parameters Growth %
Deposits 27.04
Advances outstanding 19.93
Total business 23.49
Per branch business 22.37
Per staff business 24.64

AWARDS AND ACCOLADES:

NABARD has instituted state level awards for the best performance under
SHG bank linkage program and exceptionally well performing Farmer’s club
promoted by the banks. Our bank (PGB) received the following state level awards
for 2010-2011.
 2nd best bank under SHG – BLP for best performing bank under RRB’s
category.
Ranking among RRB’s at national level:
 3rd rank biggest RRB in the country in terms of owned funds and net worth.
 4th rank, biggest RRB in the country in terms of total advances.
EVENTS OF THE YEAR:
09-06-2014:
A seminar on rural banking human rights and philosophy was organized by
the bank in Bellary.

16-07-2014:
The government of India, Ministry of Finance, has initiated review of the
performance and progress of RRB’s at national level, on half yearly basis. The first
ever meetings of Hon’ble finance minister with general managers of sponsor banks
of RRB’s and the chairmen of select RRB’s was held on 25-01-2007 at New Delhi.

15-08-2014:
On the occasion of 61st Independence Day celebration at Harihara, our
Harihara branch was awarded with Prashasti Patra and memento in recognition of
its distinct services to the people.

02-10-2014
The bank’s Ittagi branch in Koppal District conducted awareness meet on
banking exclusively for SC/ST people at Ittagi on the eve of Gandhi Jayanti.

21-02-2014:
An exclusive meet of “charted accountants” was convinced by the bank at
Bellary. The meeting aimed at exchange of information between the bank charted
accounts.
FUTURE TARGETS/AIMS:
OUR ROAD HEAD IN 2013-2014:
1. Reaching a total business of Rs.6023 Crores by March, 2013.
2. No frill accounts opening another 1,00,000 new accounts and bringing them
under financial inclusion.
3. Reaching the mark of Rs. 140 Crores under SME sector (Small & Medium
Enterprises).
4. Bringing down our gross NPA to 67.79 Crores there by bringing the level of
Gross NPA to 2.79Percent of total advances outstanding.
5. Earnings Rs. 87 Crores profit.
6. Setting up of 25 ATM’s.
7. Introducing debit/credit cards.
8. Entering foreign exchange business.
9. Cross selling of mutual fund products.
10.Bringing 1.2 million families under financial inclusion.
11.We will be contributing to the rural development by giving priority to
following sectors.
a. Watershed development
b. Minor irrigation projects.
c. Rural godown.
d. Horticulture
e. Fruit processing units.
PERFORMANCE OF THE BANK AT A GLANCE:

Parameters 2013-14 2014-15

Key Performance indicators 7 8

1. No. of districts covered 351 354

2. No. of Branches 272 272

a. Rural 59 59

b. Semi Urban 20 23

c. Urban 1947 1930

3. Total staff of which officers 724 724

4. Deposits growth Percent 200619 254863

5. Borrowing outstanding growth Percent 127.90 10.77

6. Gross loans and advances outstanding 202529 242895

BRANCH NETWORK:
 The district wise and category wise breakup is as follows:
Name of Urban Semi urban Rural Total Ext.
the district Counters

Bellary 08 09 48 65 03

Chitradurga 02 05 57 64 -

Davanagere 02 05 36 43 -

Kolar 02 12 49 63 02
Koppal 00 09 32 41 01

Raichur 06 14 31 51 -

Shimoga 03 05 19 27 -
Total 23 59 272 354 06

Percentage 6.49 16.66 76.85 100.00 -

to total No.
of Branches

The bank has opened branches at Chitradurga - Kelagote, Devaraj Urs Layout
Davanagere, and Mission compound Shimoga during the year, taking the total
number of branches to 354.
The bank has licenses on hand for opening new branches.

SHARE CAPITAL
Contribution to share capital and share capital deposit by share holders stood as
below:
Particulars Government Canara bank Government Total
of India of Karnataka
Share 200 140 60 400
capital
Share 1995 1397 599 3991
capital
deposit
Percent of 50 35 15 100
holding

OWNED FUNDS:
Owned funds have increased to Rs. 378.38 Crores during the year from Rs.
330.61 Crores in 2014-15.

STATUTORY RESERVES:
Statutory reserves increased to Rs. 240.68 Crores during the year from
Rs.231.13 Crores in 2014-15 though RRB’s are statutory exempted from creating
the following reserves bank have prudently and proactively created the reserves.
 Investment fluctuation reserve
 Floating reserves towards investments.
 Floating reserves towards NPA.

DEPOSITS:
Yearend target of Rs.2450.00 Crores was accomplished and the aggregate deposits
of the bank increased from Rs.2010.19 Crores as at March, 2014 to Rs.2548.63
Crores as at March, 2013 of 22.11Percent in the previous year.

The emphasis is continued to be laid or increasing the share of demand

deposits so as to bring down the cost of deposits and increase our spread. However,
due to non-availability of online banking facility, the government of Karnataka
directed its entire department shift their major accounts.

LOANS AND ADVANCES OUTSTANDING:

The yearend target of Rs. 2400.00 Crores was surpassed by the bank. The
advances outstanding increased from Rs. 2025.29 Crores to Rs. 2428.95 Crores
during the period from March, 2013 to March, 2015 the rate recorded was
19.33Percent.

CUSTOMER SERVICE:
A complaint free and satisfactory customer service has been the bank’s
objective. There is a well defined system in place to resolve the
grievances/complaints of the customer expeditiously.
All branches observed customer day on 15th of every month. In addition,
periodical customers meets held during the year helped the bank to know the needs
and applications of clientele and the feedback receive helped the bank to fine tune
its existing products and devices new products to the satisfaction of the customer.

SOCIAL SERVICE AND THE BANK:

 There is an emotional bound between bank, it customers. Public an rural
people in particular which has enabled the bank to earn a house hold name in its
commercial area.

SWOT ANALYSIS
• How is the bank stack up in terms of Strength, Weaknesses, Opportunities,

and Threats?

• If SWOT analysis can be tied to customers, products, and delivery systems,

it can be a very useful planning technique.

Internal Strengths and Weaknesses:

 1. Concentrate on the current and past performance of your company in the

market place. Review marketing, financial, manufacturing, organisational

and any other competencies that are relevant to your company. Brainstorm

factors that influence each competency.

2. Prioritise this list.

3. On Table 1.1 Strength / Weaknesses Analysis form supplied rate each factor

from  Major Strength to Major Weakness. Also give each factor an

importance rating.

4. Plot each factor on the Importance - Performance Matrix (Table 1.3).

5. Items in cell 1 should be strengthened. Items in cell 2 are ok. Items in cell 3

are of low priority. Items in cell 4 point to potential mis-application of

resources.

6. Strengths and weaknesses are essentially internal to the organisation and

relate to matters concerning resources, programmes and organisation in key

areas such as:

Opportunities
 Keeping in mind what you have listed as your Company Strengths, SWOT

Analysis can now influence the Opportunities for the business. These can be seen

as targets to achieve and exploit in the future for example:

1. Good financial position creating a good reputation for future bank loans and

borrowings

2. Skilled workforce means that they can be moved and trained into other areas

of the business

3. Competitor going bankrupt (Takeover opportunity?)

4. Broadband technology has been installed in the area (useful for Internet

users)

5. Increased spending power in the Local/National economy

6. Moving a product into a new market sector

Threats

The final part of the analysis will also be seen as the most feared- the

Threats. It has to be done and therefore taking into account what you have listed as

your weaknesses, the threats will now all seem too clear. Examples

1. Large and increasing competition

2. Rising cost of Wages (Basic wage, etc)

3. Possible relocation costs due to poor location currently held

4. Local authority refusing plans for future building expansion

5. Increasing interest rates (increases borrowing repayments, etc)

6. End of season approaching (if you depend on hot weather, etc)

7. Existing product becoming unfashionable or unpopular