The global economy is climbing out from the depths to which it had plummeted during the Great Lockdown in April. But with the COVID-19 pandemic continuing to spread, many countries have slowed reopening and some are reinstating partial lockdowns to protect susceptible populations. While recovery in China has been faster than expected, the global economy’s long ascent back to pre-pandemic levels of activity remains prone to setbacks.
Although the global economy is emerging from the collapse triggered by the pandemic, the recovery is projected to be subdued. Global economic output is expected to expand 4 percent in 2021 but still remain more than 5 percent below its pre-pandemic trend. Moreover, there is a material risk that setbacks in containing the pandemic or other adverse events derail the recovery. Growth in emerging market and developing economies (EMDEs) is envisioned to firm to 5 percent in 2021, but EMDE output is also expected to remain well below its pre-pandemic projection.
In India, growth is expected to recover to 5.4% in 2021. The pandemic will likely lower potential growth, including through eroding human capital and investment growth. In the financial sector, nonperforming loans were already at high levels before the pandemic and the economic downturn may lead to further insolvencies among financial and non financial corporations.
On the Banking Side, in order to help borrowers to deal financially with the impact of COVID-19 which led to Nationwide Lockdown, the RBI had granted moratorium option to borrowers for six months starting from Mar 20 to Aug 20. Further Ministry of Finance also advised banks to not levy minimum balance charges to its customers for the period between April 2020 to June 2020. The Ministry of Finance in order to ensure that borrowers do not face extra financial burden of being charged interest on interest and also to reward customers who did not avail of moratorium and paid their dues timely advised Bank to pay ex-gratia to all its borrowers as per the terms laid down by them, which will be subsequently reimbursed to the Bank by the Government of India. The government of India is also taking various steps to support MSME and other vulnerable sections of the societies who have been hit hard by pandemic by introducing various schemes for them to ensure their growth and bring Indian Economy back to its pre-COVID level.
Further, to increase customer service and customer satisfaction RBI decided to make online RTGS available round the clock on all days of the year with effect from December 14, 2020. Further, RBI has also introduced Positive Pay system for high value cheque issued by customers, wherein customer will have to inform Bank about the details of high value cheque issued by them, this will help to prevent cheque related frauds substantially.
I want to further announce that the Statutory Audit of your Bank has been completed for FY 2019-20 in the month of December 2020, and the Bank has earned a profit of Rs`4.46crores. The Balance Sheet and Profit & Loss statement have been published on the next page of this issue. As you all are aware that inspite of earning profit, the Bank will not be able to distribute dividends to its member, as advised by the RBI to all the Banks. I also ensure you that in this difficult times, the Bank is taking each and every step possible to take your Bank to greater height
I wish to sincerely thank all our members for their continued faith in our strength and capabilities, our customers for their valuable support and trust in us, even in these difficult times, which will lead your Bank towards achieving its goals & pinnacle of excellence. I assure you that your Bank shall continue with its efforts of bringing in better products, processes & services so as to make your banking experience a joyful experience with us.
I also request you to take proper care of your health and take necessary precautions, as the pandemic is still not over, we need to be alert and ensure that we win the battle against the deadly virus & hope that our lives return to normal at the earliest. This will be possible only with the co-operation of each and every person.