Directors Report

On behalf of the Board, it is my privilege and pleasure to invite you to the 12th General Body Meeting of Guardian Souharda Sahakari Bank Niyamita.

The past year has been one of the most challenging ones in the recent economic history of our country. The global economic meltdown sparked off in the west in 2007 began to effect the Indian economy by 2008 -2009. Sections of the economy that were highly dependent on International Investments for their buoyancy, began to see a serious devaluation and deceleration of growth. The severe reduction in the purchasing power of the west also began to effect export oriented businesses and the IT/BPO industry of Bangalore was no exception. Bangalore also saw stagnation in real estate and financial services markets. These macro events have to some extent also impacted the community that your bank serves.

Anticipating these difficulties arising for our members, your bank had well in advance initiated a number of measures to help them deal with these difficult times.

Your bank has adopted business strategies to respond to this downturn and insulate ourselves from its negative effects. Thanks to the early action of the leadership and management, we have been able to deliver a good financial performance despite these challenges.

As we send you this report the economy is already turning around and most of the difficulties of 2008-09 have now passed into history. We believe that both our community in Bangalore and your bank are well positioned for the next phase of spectacular growth of the Indian economy.

OUR MISSION
The last financial year with the specter of recession looming large over the community, offered your bank the opportunity to live up to its name as ‘Guardian of the financial interests of our community’. The market meltdown resulted in many members loosing jobs or facing salary cuts, small businesses found themselves unsustainable and faced closure and professionals were without work. Through a number of programmes, the bank management have reached out to these people in need and helped them to deal with their debt, financial default and other difficulties. Bank Officers have even turned Business Consultants advising our customers on prudent financial behavior of minimizing debt and market credit exposure and maximizing cash flow and liquidity.

The net effect of all these efforts which were well beyond regular financial services has resulted in minimizing the negative effect of delinquencies for the bank and strengthening and deepening our relationship with our members and clients.

FINANCIAL PERFORMANCE
The financial performance of your bank for the year 2008 -09 has been satisfactory, keeping in view the challenging socio economic circumstances, we are happy to announce that the bank has ended the year with a net profit of Rs. 82.58 lacs. Post appropriation, the Reserves of the bank stands at an increase of 9.1 %. The working capital of the Bank as at 31.3.2009 is Rs. 37.28 crores an increase of 9%. The number of members now stands at 5855. Your bank has 14208 active accounts.

The appropriation of the net profit proposed by the Board:

MANAGEMENT
The Board would like to place on record its appreciation to all the staff of Guardian Bank who have worked tirelessly and beyond the call of their duty to serve our members. I would like to make a special mention of our management team led by Sharon Joseph, CEO, Dominic A. Kumar, General Manager, Prathap George, Manager,   Neelima, Arokia Raj, Sara Patrick and Shankar. I am sure there are many members who would   join me in appreciating the sincerity and hardwork by these fine officers. I would also like to acknowledge the efforts and hardwork put in by our External Consultants, our Legal Panel and Approved Valuers.

FUTURE PROPECTS
Recent months have indicated a distinct revival in the economical situation. India with its strong domestic demand and its price competitiveness in the global market is said to lead the Global Economic Recovery. We believe that for our members and our community the worst is behind us and going forward is a time for consolidation and growth.

Your bank will play a significant part in this consolation process by reaching out and offering its services to all our members. Your bank is in the constant process of establishing new branches with the permission of RBI and upgrading its technology. We will continue to reach out to our community especially those in the most financial need.

ACKNOWLEDGEMENT
We would like to acknowledge the continued help and support by the large number of well wishers who have always stood by your bank from its very inception. I wish to thank leaders of the community and heads of Institutions for their co operation and willingness to work with the bank for the benefit of the community. I wish to thank you as a member for playing your part in making the Guardian Bank a success. Finally, I thank our Lord for showering us with the power of the Holy Spirit that motivates and guides us in our every single thought, word and deed.